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The October 1995 loan to the Lower Arkansas Water Management Association (LA WMA) was repaid to the account with part of the proceeds of a separate $3.68 million loan from unreserved cash in the Construction Fund to LA WMA authorized in SB96-124. However, since the full contract amount was not borrowed, $38,567 under this initial contract is still encumbered. . Net lending commitments from the account then amount to $2,929,157; not all of which has been disbursed to date. Subtracting this amount from the authorized level of funding leaves a balance in the fund of $570,843 available for new loans. Discussion Of the three well augmentation associations in the Arkansas River basin, it is our understanding that neither AGUA nor LA WMA is intending to borrow additional funds in the near future. The Colorado Water Protective & Development Association (CWPDA) is presently conducting a feasibility study for an augmentation program for members' groundwater pumping. The feasibility study is expected to be completed by March of 1999, at which time the CWPDA is likely to apply to the Board for funding of water rights purchases under the Arkansas Loan Account. Since the study is still in progress, the amount of consumptive use credits needed is still unknown. Discussions with the staff of CWPDA, however, indicate that as much as 3,000 acre-feet may be required. Based on the cost of water rights for the LA WMA and AGUA loans, it may be advisable to have about $2.5 million available for lending to CWPDA. . ~- Recommendation Staff recommends that the Board recommend to the General Assembly that an amount of $2,000,000 be transferred from the Construction Fund to the Arkansas River Augmentation Loan Account in order that at least $2.5 million will be available for lending from the account during 1999. LJBOARDMEMfNOV98/27. Arkansas .