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<br />. Review all authorized loans not constructed and determine how long they have been <br />authorized. <br /> <br />. Identify funding authorizations for completed projects with residual balances still on the <br />books and recommend any residual funds be returned to the cash balance ofthe Construction <br />Fund. <br /> <br />t <br /> <br />. Develop and evaluate options in consultation with the Colorado Water Congress for the <br />Board to consider concerning the feasibility of rigid time limits for the Construction Fund <br />loan approvals. <br /> <br />. Propose amendments to CWCB statutes or to the Board's Guidelines as necessary. <br /> <br />. Present CWCB assessment of this issue, along with any recommended action, to the <br />Governor and the General Assembly by February I, 1999. <br /> <br />Discussion <br /> <br />The board has already established reasonable time limits. The Guidelines provide that, in September <br />of each year, the Board will review the status of all previously authorized projects which are as yet <br />not started or are unfinished. The Board will review for reasonable progress on all projects which <br />have (1) not started 24 months after authorization, and (2) projects still in process 36 months after <br />authorization [Guidelines, paragraph 1.3.4.d]. <br /> <br />Since 1993, the CWCB staff has systematically reviewed previously authorized projects, and the .. <br />Board has recommended de-authorization of project loans averaging $3.3 million per year. This is <br />65% more that the annual de-authorization recommendations made before 1993. <br /> <br />Automatic de-authorization of funds based on a time limit equal to the average time needed to start <br />a project would obviously require proponents of the approved projects to be more diligent by <br />confronting approximately half of them with an additional hurdle. The structure of any such <br />limitation deserves careful evaluation and open discussion, <br /> <br />The board does not have explicit authority to "de-authorize" funds approved by the general <br />assembly. A number of project authorizations with both small and large funding residuals have <br />accumulated over the past 20 years. CWCB and DNR Accounting staff have been working to <br />identify these completed projects and have reduced that list as we are able to determine that the <br />remaining funds are not needed. However, it has not been clear whether these residual funds can be <br />returned to the cash balance of the Construction Fund by staff, by Board action alone, or whether <br />action by the General Assembly is required (see Dolores Project de-authorization in HB98-1l89, for <br />example). <br /> <br />Recommendation <br /> <br />1 recommend that the Board provide feedback to the staff on the issue of establishing reasonable time <br />limits either during a brief discussion at the November meeting and/or through written comments <br />and continued discussion at the January meeting. <br /> <br />. <br /> <br />L:\BOARDMEMlNOY98\12d - Limits,doc <br />