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<br />. <br /> <br />. <br /> <br />. <br /> <br /> <br />. ,. <br />... <br /> <br /> <br />~.. <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 60203 <br />Phone: (303) 866.3441 <br />FAX: (303) 866.4474 <br />www.cwcb.~ate.co.us <br /> <br />STATE OF COLOMDO <br /> <br />~ <br /> <br />MEMORANDUM <br /> <br />Bl/IOwens <br />Covernor <br /> <br />Creg€,Walchet <br />fxecutiye Director <br /> <br />Rod Kuharich <br />CWeB Dlre(;tor <br /> <br />Datl McAuliffe <br />~puty Ofre<.10r <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members ~ Y" <br /> <br />BiI1 Green, P.E., Water Supply Planning and Finance Section I <br />Mike Serlet, P.E., Chief, Water Supply Planning and Finance Secti'IjJ <br /> <br />May 10, 2001 <br /> <br />FROM: <br /> <br />DATE: <br /> <br />RE: Agenda Item No, 9 a. - May 21-22 Board Meeting - Water Supply <br />Planning and Finance - Financial Matters - Review of 2001 Lending <br />Rates <br /> <br />Staffs lending rate recommendations to the Board last November were based (as usual) <br />on bond yields in the previous 12 months. The average yield for the 30-year municipal <br />bonds averaged about 6.0 percent in that period. <br /> <br />Since the November Board meeting, municipal bond yields have generally declined from <br />about 5.80 percent in November to 5.40 percent at the present time. (The pattern is about <br />the same for 30-year Treasuries.) CWCB lending rates, however, are based on the <br />average yield on bonds over a period of 12 months. <br /> <br />Attached are traces for the 30-year municipal and Treasury bonds for a recent twelve- <br />month period. The average yield for the municipals in that time was 5.72 percent which is <br />about a quarter point less than the average presented at the November Board meeting. <br /> <br />Table I is a lending rate structure based on bond yields for the same twelve months. <br />There is no projected change in the Agricultural rate since it was set independently of the <br />procedures used to calculate the other lending rates. The Agricultural rate is currently <br />1.00 percent lower than rates for any of the other lending categories. <br /> <br />Table 1. Lending Rates Based on April 2000 to Apri12001 Bond Yields <br /> <br /> <br />Low Income <br />4.25% <br /> <br />Middle Income <br />5.25% <br />3.50% <br />6.25% <br /> <br />High Income <br />5.75% <br /> <br />flood Protection. Water Project Planning and Financing. Stream and lake Protection <br />Water Supply ProtectiDn . Conservation Planning <br />