PUB00134

• Year: 1998
• Title: Construction Fund Annual Report 1998
• CWCB Section: Finance
• Author: CWCB
• Description: Construction Fund Annual Report 1998
• Publications - Doc Type: CF Annual Report

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Preface

Fiscal Year 1998 caps a very exciting period for the CWCB Construction Fund Loan Program.
Over the past 5 years, the program has undertaken a significant transition. With a small staff of 6
full time employees and a very expansive charge from the Board, we have increased the number of
completed loans by 56% in the last five years, from 110 to 172 projects. The cumulative value of
completed loans increased 90%, from $65 million in 1993 to $123 million in 1998. The average
number ofloans completed annually increased 86%, from 7 projects per year between 1987-1993
to 12 projects per year between 1994-1998. The average value of loan projects completed annually
increased by 176% from $4.2 million to $11.7 million per year during the same time periods.

Concerning management of the financial integrity of the Construction Fund, during the 5 year
period from June 1, 1993 to June 1, 1998:

. Construction Fund equity increased 49.1 % from $137.3 million to $204.7 million.
. The average annual growth of the fund, not including a $22.3 million transfer from the General
Fund in 1994, was 5.4%.
. The value ofloans receivable increased 104% from $52.2 million to $106.4 million.
. Annual loan repayments of principal and interest increased 50% from $4.4 million to $6.6
million per year.
. The cash to total fund equity ratio, inCluding the $22.3 million General Fund transfer, decreased
23% from 62% to 48%.

We also inaugurated the use of the Perpetual Base Account of the Severance Tax Trust Fund as
a new source of funds for loans for construction of water supply facilities in areas impacted by
development of Colorado's energy resources.

All this success comes at a time of considerable uncertainty. A new govemor will take office
in January 1999. Term limits and the results of the November general election will change the
composition of the Legislature and its subcommittees. The Executive Director of the Department
of Natural Resources and the Director ofthe Board announced their retirements, and new directors
are expected to be appointed in 1999. .

The significant increase in the number of communities, businesses and individuals we have
assisted in recent years has tested our ability at the present level of staffing to assure accurate and
timely monitoring of various accounting and record keeping activities. However, a comprehensive
performance audit by the Legislative Audit Committee is in progress, and we are looking forward
to their positive recommendations.

~~

~R~

Peter H. Evans
Acting CWCB Director

William P. Stanton, P.E.
Chief, Project Planning and Construction Section

CWCB FY98 Annual Report, page iii