BOARD01816

• Board Meeting Date: 11/19/2001
• Description: CF Section - Proposed Statute Revisions Construction Fund and Severance Tax Trust Fund Perpetual Base Account
• Board Meetings - Doc Type: Memo

Repeal of Salinity Control Loan Program Authorization

Salinity Control Loan Prol!ram Authorization - reveal.:

(1) Section 13 of SB 97,08 is hereby repealed ahd the balance of monies in the account
shall be returned the Colorado water conservation construction fund:
SECTION 13. Salinity coutrol program loans. The Colorado water conservation Board is
hereby authorized to eJEj9end a cumulative total of eRe roillioR dollars ($1,000,000) from
lHlfeserved cash ill. the Colorado water cORBervation board cORstmctioR fuRd for leans to
participants in the Colorado ri-ler basiR salinity cOI\tro1 program, Suob. loans shall be at the terms
and conditioRS the board determines a,fter review and 8J3prova,1 of eacll poteHtial participant's
application, The loas. amount sha,ll not exceed fifty pereeHt of the total cost of constnwtiRg as.y
particular sa,linity cltlntrol proj cct.

Discussion

SB 97-008 authorized the Board to expend a cumulative total of $1,000,000 from the
Construction Fund for loans to participants in the Colorado River basin Salinity Control
Program, The loans were to be at the terms and conditions the Board determined after review
and approval of each potential participant's application, The loan amounts were not to exceed
50% of the total cost of constructing any particular salinity control project. The Board has not
considered a single loan from this program, and the balance in the account remains $1,000,000
after four years,

The small project loan program will provide a means of authorizing the type of loans
originally anticipated from this account. The fact that no loan applications have been received in
the past four years also indicates that the Salinity Control Loan Program should be eliminated
and the funds in the account returned to the unreserved cash in the Construction Fund to be used
for future feasible water projects,

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