BOARD00409

• Board Meeting Date: 5/23/2005
• Description: CF Section - Financial Matters Lending Rate Structure for FY 2006
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phon., [phone]
FAX: [phone]
www.cwcb.state.co.us

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Bill Owens
Governor

Russell George
Executive Director

MEMORANDUM

Rod Kuharich
CWCB Director

TO:

Dan McAuliffe
Deputy Director

FROM:

Colorado Water Conservation Board Members

Mike Serlet, P.E., ChieW J
Water Supply Planning an~~ Section

DATE:

May 13, 2005

SUBJECT: Agenda Item #12 - May 24-25, 2005 Board Meeting
Water Supply Planning and Finance Section - Financial Matters
Lending Rate Strncture for FY 2006

Introduction

This memorandum provides a summary of interest rates for the last six months and the staff
recommendation for a lending rate structure for CWCB lending programs for the next twelve months.
The recommendation is in accordance with the Board's Financial Policy #7 - Annual Construction
Fund and Severance Tax Trust Fund Perpetual Base Account Lending Rate Determination.

Discussion

Attached is a graph of weekly fields for the 30-year "A" rated municipal bond for the period
November 14,2004 to May 8, 2005. As the graph indicates, the average yield for the municipal
bond was 4.74 percent for the past six-month period.

1 Standard & Poor's definition ofan 'A' bond rating is: "A debt rated 'A' has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic
conditions than debt in higher rated categories."

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning