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<br />. POLICY NUMBER: 13 <br /> <br />SUBJECT: <br /> <br />TARGET GROWTH RATE FOR THE COMBINED <br />EQUITY OF THE CONSTRUCTION FUND AND <br />SEVERANCE TAX TRUST FUND PERPETUAL BASE <br />ACCOUNT <br /> <br />EFFECTIVE DATE: October 1,2000 <br /> <br />POLICY; <br /> <br />PURPOSE: <br /> <br />. <br /> <br />The Colorado Water Conservation Board (CWCB) will attempt to <br />maintain an overall growth rate for the combined equity of the <br />Construction Fund and Severance Tax Trost Fund Perpetual Base <br />Account (STTFPBA) of no less than the long-term rate of <br />inflation, as established by appropriate construction cost indices, <br />plus 0,5%, THIS WILL BE THE "TARGET GROWTH RATE." <br /> <br />To offset the impacts of cost inflation, to maintain the financial <br />integrity of the CWCB Construction Fund and STTFPBA and to <br />provide a process for estimating the financial resources available <br />for grants NON-REIMBURSABLE INVESTMENTS from the <br />Construction Fund in any given year. <br /> <br />APPLICABILITY: This policy and procedure apply to the CWCB Construction Fund <br />and STTFPBA. <br /> <br />PROCEDURE: <br /> <br />The overall growth Fate for the combined fund equity of the <br />Construction Fund and STTFPBA will be presented as part of the <br />Comprehensive Annual Financial Report by CWCB staff at the <br />September Board meeting each year, Staff will present an annual <br />estimate of funds available for grants NON-REIMBURSABLE <br />INVESTMENTS relative to various rates of growth in combined <br />fund equity, including the target growth rate, THE ESTIMATE <br />OF FUNDS AVAILABLE FOR NON-REIMBURSABLE <br />INVESTMENTS WILL BE THE CURRENT COMBINED FUND <br />EQUITY (AS OF THE END OF THE MOST RECENT FISCAL <br />YEAR), LESS THE PREVIOUS YEAR'S COMBINED FUND <br />EQUITY INCREASED BY THE TARGET GROWTH RATE, At <br />the same Board meeting each year, staffwill present a summary of <br />long-term construction cost indices with any recommendations for <br />revisions to the target growth rate in combmed fund equity. <br /> <br />Approved by the CWCB <br />September 25, 2000 Board Meeting <br />Agenda Item # 13d <br /> <br />. <br />