BOARD01540

• Board Meeting Date: 9/10/2002
• Description: CF Section - Policy #16 - Construction Fund and Severance Tax Trust Fund Perpetual Base Account Loan Service Changes
• Board Meetings - Doc Type: Memo

,
e

e

e

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

Greg E, Walcher
Executive Director

TO:

FROM:

Colorado Water Conservation Board Members

Mike SerIet, P.E., Chief ,1/ (
Water Supply Planning aC~ance Section

Dan McAuliffe
Deputy Director

Rod Kuharich
eWeB Director

DATE:

September 3, 2002

SUBJECT:

Agenda Item 16b - September 10-12, 2002, Board Meeting
Water Supply Planning and Finance Section - Policy Review
Policy #16 - Construction Fund and Severance Tax Trust Fund Perpetual Base
Account Loan Service Charges

Introduction

This item is the review of a proposed new financial policy to implement changes made to
Section 37-60-119(2) C.R.S. by HB 02-1152, last year's Construction Fund Projects Bill, The
Statute now allows the Colorado Water Conservation Board (CWCB) to charge borrowers from the
Construction Fund and Severance Tax Trust Fund Perpetual Base Account fees, as the Board feels
are necessary, to recover the Boards' operational and maintenance charges in administering the
program loans,

Background

At the November 2001 Board meeting, the Board approved amending the above referenced
statute in anticipation of levying charges associated with the Construction Fund and Severance Tax
Trust Fund Perpetual Base Account loan program. A copy of Section 29 of HB 02-1152 showing
the revised language is attached.

The staff discussion at the November 2001 Board meeting regarding this matter included the
following statement: "The revisions to 37-60-119(2) relative to where the interest charges and other
charges are credited, refers to the Board levying future application fees, loan origination fees, or
other fees pertaining to the administration of the Construction Fund loan program, The monies
collected from such fees would be credited to the operational account of the Board to be used for
miscellaneous operational expenses. The fees would be established by the Board at a later time
depending on the needs of the Board at that time and the work load of staff in administering the loan
program."

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning