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<br />. <br /> <br />. <br /> <br />. <br /> <br />Mr. Doug Shriver <br />November 20, 1998 <br />Page 2 <br /> <br />Certain types of reyenue, such as federal funds, are excluded from the TABOR definition <br />of "fiscal year spending," but, it is my understanding, state grants are not. Therefore, it appears, that <br />the District may not accept a grant from the Colorado Water Conservation Board (CWCB) and <br />expend those funds without holding an election because to do so would increase the district's fiscal <br />year spending from one year to another. Also, the District's Water Enterprise could accept the grant <br />only if that grant would not increase the percentage oftotal revenue for the Enterprise obtained by <br />grant from other public entities beyond 10%. Therefore, the District probably cannot accept the <br />CWCB grant on its own behalf or funnel the grant into the Water Enterprise absent an election. <br /> <br />As 1 explained earlier, 1 informed the directors of this situation at the October 21, 1998, <br />Board of Directors' Meeting. After a lengthy discussion, it was determined that the District's <br />attorneys need to conduct additional research to determine if or what strategy can be used for the <br />District to participate in the river restoration project. It was also determined that under the current <br />system, the District cannot be the sponsoring agency for the application for funding to the CWCB <br />as prepared by Engineer Allen Davey. However, Allen Davey and I haye made a diligent effort to <br />explore other possible ayenues that could be used to secure grant money from the CWCB. We <br />belieye that the best possibility would be to find a current non-profit organization to assist in these <br />efforts. I discussed this matter with Jerry Freeman as a representative of the Citizens for San Luis <br />Valley Water. The result of our discussions is the attached proposed Application For Fundin~ that <br />Mr. Freeman would be glad to submit to the CWCB at their November 24Th meeting pending your <br />approval. Mr. Freeman can be reached at (719) 587-0016. <br /> <br />It is unfortunate that this has become such a burdensome process; however, I am sure you <br />will appreciate the efforts that the Water District had made. We belieye the project is yery <br />important and have directed our attorney to continue to research this situation. However, we do <br />believe that we have a solution to the immediate problem which is the grant application. As <br />manager of the District, I am involved in the District's projects on a day to day basis and will <br />continue to be inyolved with this project. Therefore, if you have any ongoing concerns or questions, <br />I would appreciate it if you would contact me directly. <br /> <br />Sincerely, <br /> <br />U4 <br /> <br />Carol Redding <br /> <br />cr <br />xc: Allen Davey, Peter Fleming, Keith Holland & Jerry Freeman <br />enc: Freeman resume, proposed application, information from SL V Ecosystem Council <br />