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<br /> <br />-4- <br /> <br />e POLICY NUMBER: 7 <br /> <br />SUBJECT: <br /> <br />ANNUAL CONSTRUCTION FUND AND SEVERANCE TAX TRUST <br />FUND PERPETUAL BASE ACCOUNT LENDING RATE <br />DETERMINATION <br /> <br />EFFECTIVE DATE: January 25, 1995 <br /> <br />REVISED DATES: <br /> <br />November 24, 1997 <br />January 27. 1999 <br />November 20,2001 <br />May 20. 2002 <br /> <br />POLICY: <br /> <br />The Colorado Water Conservation Board (CWCB) shall annually establish <br />lending rates for loans to be made from the Construction Fund and Severance <br />Tax Trust Fund Perpetual Base Account. Thirty-year lending rates will be <br />established for agricultural, commercial, and municipal categories ofIoans <br />using the procedure outlined below: <br /> <br />. <br /> <br />1. A Baseline Rate will be established equal to the average yield of the 30- <br />year "A" rated* municipal bond for the six months preceding the May <br />Board meeting of each year, and will be used to set all of the other lending <br />category interest rates. <br /> <br />2. The Commercial Rate will be calculated as 110 percent of the Baseline <br />Rate, rounded to the nearest one-quarter of one percent. <br /> <br />. <br /> <br />3, Municipal Rates will be based on the project sponsor's service area <br />median household income. as established by the Colorado Department of <br />Local Affairs, and will be structured as follows: <br />a. The Municipal High Income Rate will be calculated as 90 <br />percerit of the Baseline Rate rounded to the nearest one-quarter <br />of one percent. The High Income Rate will apply where the <br />median household income in the project sponsor's service area <br />is greater than 110 percent of the state-wide median household <br />mcome <br />b. The Municipal Middle Income Rate will be calculated as 80 <br />percent of the Baseline Rate rounded to the nearest one-quarter <br />of one percent. The Middle Income Rate will apply where the <br />median household income in the project sponsor's service area <br />is equal to 80 percent to I 10 percent of the statewide median <br />household income. <br />c. The Municipal Low Income Rate will be calculated as 70 <br />percent of the Baseline Rate rounded to the nearest one-quarter <br />of one percent. The Low Income Rate will apply where the <br />median household income in the project sponsor's service area <br />is less than 80 percent of the statewide median household <br />income. <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />