BOARD00940

• Board Meeting Date: 3/29/1999
• Description: CF Section - Long-Term Financial Projection
• Board Meetings - Doc Type: Memo

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Severance Tax Trust Fund

The total of all cash sources to the Construction Fund in FY 1998 was reported by the Colorado
Financial Reporting System (COFRS) to be $14.87 million. The long-term cash sources to the
Severance Tax Trust Fund include the following:

. Severance Tax distributions
. Principal recoveries on 10ans
. Interest on 10ans
. Interest from the State Treasurer

Severance Tax distributions to the trust fund inFY 1998 were $14.87 million with $9,878 million
from oil and gas, $4.672 million fron coal, and $0.320 million from metals.

There was no return of principal or interest on loans in FY 1998 because no loan funds were
disbursed in prior yrears.

By Colorado statute, the cash in the Severance Tax Trust Fund is invested by the State
Treasurer and the earned interest accrues to the General Fund. HB 99-1249 as amended proposes
to change the law so the earned interest, currently estimated at 5.5%, will stay in the Severance Tax
Trust Fund.

CWCB Administration Fund

The Board's administrative expenses are managed through the Administration Fund. The
. Administration Fund is supported in part by the General Fund, the Construction Fund, other cash
sources, and federal funds. The Board's FY 1998 administrative expenses totalled $3.40 million.
This included:

. General Fund $1,308,721 ( 38%)
. Construction Fund 1,620,855 ( 48%)
. Division of Wildlife 296,027 ( 9%)
. Severance Tax Trust Fund Operational Acct. 100,000 ( 3%)
. Weather Modification Permit Fees 675 ( 0%)
. Federal funds 71.361 (-.2%)
Total $3,397,639 (100%)

Figure 1 is a schematic diagram of cash sources and CWCB funds and the flow of cash between
them. A summary of the Board's annual administrative expenses is included in Appendix C.

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