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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: 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 Trust 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%. <br /> <br />PURPOSE: 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 non-reimbursable investments from the Construction Fund in <br />any gIVen year. <br /> <br />APPLICABILITY: This policy and procedure apply to the CWCB Construction Fund <br />and STTFPBA. <br /> <br />PROCEDURE: The overall growth rate 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 relative to various rates of <br />growth in combined fund equity including the target growth rate. <br />At the same Board meeting each year, staff will present a summary <br />of long-term construction cost indices with any recommendations <br />for revisions to the target growth rate in combined fund equity. <br /> <br />Approved by the CWCB <br />September 25, 2000 Board Meeting <br />Agenda Item # 13d <br />