BOARD01019

• Board Meeting Date: 11/23/1998
• Description: CF Section - Proposed Legislation - Alternative Funding Sources
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
131 3 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLORADO

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Roy Romer
Governor

James S. Lochhead
Executive Director, DNR
DariesC. Lile, P.E.
Director, ewCB
Peter H. Evans
Acting Director, eweB

MEMORANDUM

TO:

Colorado Water Conservation Board Members

William P. Stanton, P.E. v.f!?
Chief, Project Planning and Construction Section

FROM:

DATE:

November 19, 1998

SUBJECT: Agenda Item 12b, November 23-24, 1998, Board Meeting -
Water Project Construction Loan Program - Proposed Legislation
. Alternative Funding Sources

Introduction

This memo provides the basis for the start of a discussion of the audit recommendation to require
loan applicants to show they have explored alternative funding sources before the Board approves
or recommends a loan from the Construction Fund.

Background

Recommendation #3 of the 1998 Construction Fund Performance Audit was for the Board to
"require applicants to provide evidence that they have explored alternative funding sources prior
to approving the use of Construction Fund monies."

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CWCB Response: AGREE. The CWCB staff will insist upon evidence that applicants have
explored other sources of funding in every loan application considered by the Board beginning
immediately. The use of this information is expected to raise implementation issues that deserve
further consideration by the Board and interested constituencies (e.g., what is the right balance
between a borrowers need for state assistance and the assurance oftimely repayment?).