BOARD00780

• Board Meeting Date: 5/20/2002
• Description: CF Section - Financial Matters - Lending Rate Structure for 2003
• Board Meetings - Doc Type: Memo

STATE OF COLORADO

Colorado Water Conservation Board

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

Bill Owens
Governor

Greg E. Walcher
Executive Director

MEMORANDUM

Rod Kuharich
CWCB Director

TO:

Colorado Water Conservation Board Members

Dan McAuliffe
Deputy Director

FROM:

Mike Serlet, P.E., Chief
Water Supply Planning and Finance Section

DATE:

May 13,2002

SUBJECT:

Agenda Item lOa. - May 20-21, 2002 Board Meeting
Water Supply Planning and Finance Section - Financial Matters
Lending Rate Structure for 2003

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 FWld Perpetual Base Account Lending Rate Determination.

Discussion

Attached is a graph of weekly yields for the 30-year "A" rated municipal bond for the period
November 12, 2001 to May 13,2002.1 As the graph indicates, the average yield for the municipal
bond was 5.4 percent for the past six-month period.

The rates shown in Table 1 below are calculated based on Financial Policy #7.

1 Standard & Poor's definition of an '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