PUB00137

• Year: 1996
• Title: Construction Fund Annual Report 1996
• CWCB Section: Finance
• Author: CWCB
• Description: Construction Fund Annual Report 1996
• Publications - Doc Type: CF Annual Report

CWCB FY96 Annual Report, page 16

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1, From 1981 through 1992, about two-thirds of the Board's cost of the projects recommended
were for projects which were expected to increase the beneficial consumptive use of
Colorado's compact entitlement.

2, From 1981 through 1994, no applications for flood control projects were accepted by the
Board,

3. No applications for domestic water treatment and distribution systems have been accepted
by the Board since March, 1981.

4, All feasibility studies initiated by the Board since the adoption of the criteria have included,
to the extent deemed necessary: an evaluation of water rights; an evaluation of the
engineering and economic feasibility of the project; and an evaluation of the economic,
social, and environmental effects,

3.3 Interest Rate Policy

At the November Board meeting of each calender year, the Board sets a standard 30-year lending
rate for Construction Fund projects which are to be recommended to the General Assembly in the
following year. The standard rate is 2-percent less than the average yield for 30-year D,S. Treasury
Bonds for the preceding 12 months,

Lending rates are established for municipal, agricultural, and commercial projects, For municipal
projects, lending rates are established for low, medium, and high income service areas based on
median household income in the project sponsor's service area, Lending rates for agricultural
projects are identical to municipal low income rates, Lending rates for commercial projects are
identical to municipal high income rates,

For municipal low income areas, where median household income (MIll) is less than 80-percent
of the statewide MHI, the lending rate will be 20-percent below the standard rate, For municipal
medium income areas, where MHI is between 80 and 110-percent of the statewide MHI, the lending
rate will be the standard rate. For municipal high income areas, where the MHI is more than 110-
percent of the statewide MHI, the lending rate will be 10-percent above the standard rate,

For loans with maturities of 20 years or less, but more than 10 years, the rate may be reduced
by one quarter of one percent below the 30-year rate for that category of lending, For loans with
maturities of 10 years or less, the lending rate may be reduced by one half of one percent below the
30-year rate for that category.

At its November 1995 meeting, based on an average 30-year T-Bond yield of 7,25% for the
preceding 12 month period, the Board adopted the following interest rate policy for loans
recommended to the General Assembly in 1996,