BOARD00002

• Board Meeting Date: 9/24/2001
• Description: CF Section - Changes in Existing Loans Lower Arkansas Water Management Association Loan Payment Deferral Request
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street} Room 721
Denver, Colorado 80~03
Phone: (,03) 866.3441
FAX, (3031 866-4474
www.cwcb.state.co.us

STATE OF COLORADO

Q

MEMORANDUM

Bill Owens
Governor
Greg E. Walcher
Executive Director
Rod Kuharich
eWeB Director
Dan McAuliffe
Deputy Director

TO:

Colorado Water Conservation Board Members

Mike Serlet, P.E., Chief /11 \'
Water Supply Planning it/.,-Plnance Section

FROM:

DATE:

September 17, 2001

SUBJECT:

Agenda Item 17b- September 24-25, 2001, Board Meeting
Water Supply Planning and Finance - Changes in Existing Loans
Lower Arkansas Water Management Association - Loan Payment
peferral Request

Introduction

By letter dated September 11, 2001 (attached), the Board of Directors of the
Lower Arkansas Water Management Association (LA WMA) has requested a defennent
of one of their CWCB Construction Fund ioan payments. LA WMA's $122,000 loan
payment for Contract #C-153715 is due May I of each year. The purpose for this request
is to help offset the District's financial difficulty due to approximately $120,000 in legal
and engineering expenses to be incurred related to requirements of the Kansas v.
Colorado case.

Backl!round

In 1995, the General Assembly passed HB 95-1155 which established the
Arkansas River Augmentation Loan Account in the Construction Fund. The purpose of
the account is to make loans to organizations, or entities, for the purchase of
augmentation water, or the rights to such water, to replace out of priority surface water
right depletions and to prevent material depletions of usable stateline flows in violation of
the Arkansas River compact.

The Board has authorized several loans from the Arkansas River Augmentation
Loan Account to LA WMA for the purposes outlined in the enabling legislation. As part

Flood Protection. Water Project Planning and Financing. Stream and Lake Protection
Water Supply Protection. Conservation Planning