BOARD01770

• Board Meeting Date: 1/24/2006
• Description: CF Section - Review of Revised Guidelines for Financial Assistance through the Colorado Water Conservation Board Construction Fund
• Board Meetings - Doc Type: Memo

water resource development, land use, recreation, water quality management, economic
development, and other social and environmental effects.

2.4,6 Institutional Feasibilitv

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Address institutional considerations such as actions or proceedings that must be
undertaken to obtain compliance from governmental agencies, or other parties involved
in design, construction and financing, to allow project implementation, They include
permits, court actions, contracts, agreements, other agency approvals, etc, Coordination
on the project may be required with other Department of Natural Resources
Departments such as Division of Wildlife and Division of Parks.

The D,S, Corps of Engineers 404 (Dredge and Fill) Permit is generally the key approval
for water diversion and storage projects, The 404 permit may trigger the U.S,
Environmental Protection Agency - National Environmental Policy Act (NEPA)
process, which can require an Environmental Impact Statement (EIS) or an
Environmental Assessment (EA) for smaller projects,

Other typical federal, state, and local permits that could be encountered are:
- U.S. Forest Service - special use permit
- U.S. Fish and Wildlife - endangered species consultation
- U.S. Bureau of Reclamation - right-of-way/permit, lease, license agreement,
easement, etc.
- State Division of Water Resources - well permits, engineering plan approval
- State Water Quality Control Division - water quality
- County Commissioner approval - conditional or special use, HB 1041 activities
of "state interest"

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2.5 Financial Feasibilitv Analvsis

This section documents the financial feasibility of the selected alternative. It provides a
detailed financial program to describe financing arrangements and the sources and uses of
funds for the proposed project. It provides an analysis of the project sponsor's ability to
repay all existing and proj ected debt service, as well as normal operating expenses.
This section includes:

1. Loan Amount - Discuss total project costs, the amount of CWCB loan requested,
and the term and interest rate sought.

2. Financing Sources - Identify sources of funding for the project, including how the
local share will be provided, Describe each method of financing to be utilized, such
as CWCB loan, loans from other agencies, bonds, etc,

3. Revenue and Expenditure Projections - Include a detailed schedule of estimated
annual revenues and annual expenditures for the entire period of debt retirement.
Annual revenues should be estimated and displayed for each source of funds e
(assessments, water sales, property taxes, etc.). Annual expenditures should be
displayed for debt retirement payments to each category of debt, for operation and

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