Report of the State Auditor 1993

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13 CONSTRUCTION FUND PROJECT PLANNING Chapter 1 Overview The Colorado Water Conservation Board' was created by the General Assembly in 1937. The Board was established to work with agencies such as the U.S. Bureau of Reclamation on federal water projects within the State. One of the early projects was the Colorado River-Big Thompson Project. This was the first large transmountain diversion of water from the western slope to the eastern plains. Since the 1960s, the Board has worked with the Bureau on the Colorado River Storage Project, which includes a series of reservoirs such as the McPhee, Ridgeway, and Blue Mesa. The Legislature made a series of changes to the Board's statute related to state water resource studies beginning in 1953. Today, the Board's responsibilities in this area are broadly defined. The Board is authorized to conduct water resource studies in order to provide for the integrated development of the State's available water. .. The Construction Fund ,was established by the General Assembly in 1971. The purpose of the fund was to make financial assistance available for the development and maint~nance of water projects. The Board accomplishes this by providing low-interest, long-term loans from the Construction Fund to municipalities, water districts, irrigation companies, and other similar entities. The Board's statute allows it to recommend interest rates from 0 to 7 percent. Board practice has been to grant repayment periods for a maximum of 40 years. The Board annually submits a list 'of projects to the General Assembly for authorization. The Board's Construction Fund was established to make financial assist- ance available for water projects. The Board's policy at one time was to require the borrower to pay half the project cost. However, in 1992, the Board decided to fund up to 100 percent of the loan if the project was important to the State.