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<br />. <br /> <br />. <br /> <br />. <br /> <br />POLICY NUMBER: 4 <br /> <br />SUBJECT: <br /> <br />CONSTRUCTION FUND <br />PERPETUAL BASE <br />CREDITWORTHINESS <br />DETERMINATIONS <br /> <br />AND SEVERANCE TAX <br />ACCOUNT BORROWER <br />AND FINANCIAL NEED <br /> <br />EFFECTIVE DATE: October 1,1999 <br /> <br />POLICY: <br /> <br />The Colorado Water Conservation Board (CWCB) may make <br />water project loans available to all Project Sponsors (up to the limit <br />of funds available for lending in anyone year) who can establish <br />that the project is feasible and that they have the ability to repay <br />the loan, For all loans from the CWCB Construction Fund and <br />Severance Tax Perpetual Base Account, the Board will require <br />analyses of the project sponsor's creditworthiness and financial <br />need, <br /> <br />PURPOSE: <br /> <br />To establish a systematic method for evaluating the <br />creditworthiness and financial need of potential loan recipients, <br /> <br />APPLICABILITY: This policy applies to the consideration of all loan applications <br />from the CWCB Construction Fund and Severance Tax Perpetual <br />Base Account. <br /> <br />PROCEDURE: <br /> <br />As an integral part of the feasibility investigation for each <br />proposed project, the project sponsor will submit the following to <br />the CWCB staff: <br /> <br />The project sponsor's most recent schedule of rates or <br />assessments, <br /> <br />Copies of the project sponsor's three most recent audit <br />reports or financial statements, <br /> <br />A summary of the results of applications to all other lenders <br />to which the project sponsor has applied for funding of the <br />proposed project, <br /> <br />The cost of the water developed by the project in terms of <br />cost per acre-foot or per 1,000 gallons, <br /> <br />A detailed projection of all revenues and all expenditures <br />by year over the period of debt retirement with the CWCB, <br />and <br />