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<br />.! <br /> <br />. <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone, 13031866-3441 <br />FAX, 13031 866-4474 <br /> <br />STATE OF COLORl\DO <br /> <br />. <br /> <br />BilfOwens <br />Governor <br /> <br />MEMORANDUM <br /> <br />Greg E. Walcher <br />Executive Director, DNR <br /> <br />Peter H. Evans <br />Director, ewes <br /> <br />TO: Colorado Water Conservation Board Members <br /> <br />FROM: Bill Stanton, P.E., Chief, Project Planning and Construction ~? <br />Bill Green, P.E., Manager of Planning'PG'" . <br /> <br />DATE: March 18, 1999 <br /> <br />SUBJECT: Agenda Item 23i, March 29-30, 1999 Board Meeting - Water Project <br />Construction Loan Program - General and Financial Matters - Rate <br />of Return for 1999 Loans and Grants <br /> <br />Introduction <br /> <br />This memo describes the staff analysis for the estimated rate of return on Construction Fund <br />loans and Construction Fund loans plus grants for 1999. <br /> <br />Backl!round <br /> <br />One of the revisions to CWCB lending policy adopted by the Board in November 1997 was: <br /> <br />The Board and the staff of the CWCB will (lttempt to maintain an overall, long-tenn rate of <br />return of no less than 4.0 percent on the aggregate amount of all loans and grants made <br />through the Construction Fund in order to offset the long-run impacts of price inflation and <br />to maintain the integrity of the Fund. <br /> <br />Discussion <br /> <br />Table I is a list of all Construction Fund loans recommended by the Board for authorization by <br />the legislature in 1999. The table gives the amount, term and lending rate for each loan as well as <br />total amount of loans, total amount of grants recommended and the total of all loans and grants. <br /> <br />Staff has calculated the rate of return for the Construction Fund loans and for Construction Fund <br />loans plus grants. The procedure utilizes certain simplifying assumptions (such as the <br />disbursement of all funds in 1999) to provide an estimate of the overall rate of return without <br />unnecessarily complicating the analysis. Copies of the spreadsheets used for the calculations are <br />attached. <br />