BOARD01347

• Board Meeting Date: 7/24/2000
• Description: CF Section - Long Term Financial Projection for the Construction Fund and STTFPBA
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street. Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone] .;

Q

Bill Owens
Governor

MEMORANDUM

Greg E.Walcher
Executive Director

Peter H. Evans
eWeB Director

TO:

Dan McAuliffe
Colorado Water Conservation Board Members Deputy Director

Mike Serlet, Chief, Water Supply Planning and Finance Sectio~

July 18, 2000

FROM:

DATE:

SUBJECT:

Agenda Item 17 - July 24-25, 2000, Board Meeting
Water Supply Planning and Finance
Long Term Financial Projection for the Construction Fund and
Severance Tax Trust Fund Perpetual Base Account

The model for the Long Term Financial Projection (L TFP) of the Colorado Water
Conservation Board (CWCB) Construction Fund and Severance Tax Trust Fund
Perpetual Base Account was developed in 1996 by Mr. William P. Stanton, then Chief of
the CWCB Water _Supply Planning and Finance Section. Mr. Chuck Lile, CWCB
Director, supported. Stanton in his efforts at that time. The model has recently been
updated and electronically enhanced for the CWCB by Arthur Anderson Consultants, Inc.
to provide a more user friendly forecasting tool. Arthur Anderson also reviewed and
documented the original model's mathematical structure and found the logic used in its'
development to be sound.

The purpose of the model is to provide a tool that allows the CWCB to estimate
the cash position of the Construction Fund and the Severance Tax Trust Fund Perpetual
Base Account in a given year or years, based on a variety of user defined assumptions.
Using various combinations of assumptions, the model allows CWCB staff to determine
what effect a given set of circumstances will have on the CWCB's ability to fund
approved projects. The model is meant to be a forecasting tool only and will only
provide an estimate of cash position based on general economic variables and predefined
scenarios. The model is only used for estimating future cash flows of the Construction
Fund and Severance Tax Trust Fund Perpetual Base Account.