PUB00085

• Year: 1999
• Title: Construction Fund Annual Report 1999
• CWCB Section: Finance
• Author: CWCB
• Description: Construction Fund Annual Report 1999
• Publications - Doc Type: CF Annual Report

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2.8 Litigation Account

Section 37-60-121 (2.5) (a), CRS, created the Litigation Account in the Construction
Fund. Under certain conditions, the Board is authorized to expend up to $4.0 million
from the Litigation Account for litigation in support of water users whose water supply
yield may be diminished as a result of conditions imposed by any federal agency on
permits for existing reservoirs located on federal lands, No lawsuits have yet been
determined to meet the criteria.

The Litigation Account is not to be confused with the Reserved Rights Litigation
Fund created in the State Treasury by the General Assembly in 1982 through SB 82-087,
Authority for that fund is found in the statutes at Section 37-60-121.1, CRS. Any interest
earned by the Litigation Account is credited equally between the Construction Fund and
the Colorado Water Resources and Power Development Authority. Pursuant to SB 99-
173, the State Treasurer was directed to transfer $1,000,000 from the Litigation Account
to the Capital Account of the Species Conservation Trust Fund. The balance of the
Litigation Account was $3,000,000 on June 30, 1999.

2.9 Colorado River Recovery Program Loan Account

Section 11 of HB98-1I89 created in the State Treasury as part of the CWCB
Construction Fund, the Co'orado River Recovery Program Loan Account. The purpose
of the account is to make loans to the Colorado River and San Juan River Recovery
Programs for construction or improvement of certain water related projects in Colorado
under agreements with power users of the federal Colorado River Storage Project (CRSP)
required to recover the four endangered fish species of the upper Colorado River,
including the San Juan River. Loans from the account must be approved by the General
Assembly in accordance with Section 37-60-122(1)(b), CRS. The Board shall determine
the interest rate and repayment period for each loan, Interest earned in the account is
credited to the Construction Fund. The State Treasurer was directed to transfer
$2,000,000 from unreserved funds in the Construction Fund into the account.
Furthermore, pursuant to Section 18 of SB 99-173, the State Treasurer was directed to
transfer an additional $5,000,000 from unreserved funds in the Construction Fund into
the account. Due to a conflicting interpretation of SB 99-173 (Section 18) by the
Department of Natural Resources Controller, the funds were not transferred from the
Construction Fund unreserved cash into the account. The FY 2000 Construction Fund
Bill will reconcile this conflict by clarifying the SB 99-173 Section 18 language. The
unavailability of account funds caused by this conflict has not adversely effected the
users of this loan account.

2.10 Transfer to the Species Conservation Trust Fund

Pursuant to HB 98-1006, the State Treasurer was directed to transfer $1,500,000 from
unreserved cash in the CWCB Construction Fund to the newly created Species
Conservation Trust Fund, Furthermore, pursuant to SB 99-173, the State Treasurer was

CWCB FY99 Annual Report, page 15