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<br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Shennan Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX, (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />Bill Owens <br />Governor <br /> <br />MEMORANDUM <br /> <br />Greg E. Walcher <br />Executive Director <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />FROM: <br /> <br />Mike Serlet, P.E., Chief, <br />Water Supply Planning and Finance Section <br /> <br />DATE: <br /> <br />May 13,2002 <br /> <br />SUBJECT: <br /> <br />Agenda Item 9a - May 20-21, 2002, Board Meeting <br />Water Supply Planning and Finance Section - Policy Review <br />Policy #7 - Annual Construction Fund and Severance Tax Trust Fund Perpetual <br />Base Account Lending Rate Determination <br /> <br />Introduction <br /> <br />The Board requested staff to review Financial Policy #7 relative to the calculation of blended <br />interest rates when a project borrower's ownership falls into more than one lending category. Paragraph <br />7 of the current policy (attached) states that "For projects that include more than one purpose, a <br />weighted average lending rate will be established based on the percent of water supplied or on the <br />percent ownership for each particular purpose of the project." <br /> <br />Background <br /> <br />Policy #7 was established in 1995 in order to establish an annual lending rate structure for the <br />Construction Fund and the Severance Tax Trust FWld Perpetual Base Account. The Policy has been <br />revised on three occasions to clarifY and adjust the policy to changes in the administration of the <br />Board's water project loan programs. <br /> <br />At the March 21, 2002 Board meeting, the TW111el Water Company (TWC) of Fort Collins, <br />Colorado requested the Board to reduce their proj ect loan interest rate. The request was based on the <br /> <br />Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />