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<br />~ <br /> <br />. ; <br /> <br />" <br /> <br />2. In recommending to the Board a lending rate structure for all Construction Fund and <br />Severance Ta.'( Trust Fund loans, staff will use the following procedure: <br /> <br />. <br /> <br />. Thirty-year "An municipal bond yields will be used as the basis for lending <br />rates rather than the 30-year U.S. Treasury Bond yields which were used for <br />the last three years. <br /> <br />. The 30-year municipal bond yield (rounded to the nearest one-quarter of one <br />percent) will be used directly as the Municipal High Income lending rate and all <br />other rates will be structured from that rate. <br /> <br />. Lending rates for the Commercia1/Industrial category ofloans will be set at a <br />rate somewhat higher than the Municipal High Income category. (The two <br />rates are identical in the current rate structure.) Staff recommends a rate 20 <br />percent higher than the Standard rate. <br /> <br />... <br /> <br />3. In recommending to the Board a lending rate for individual municipal loans, the staff <br />will take into consideration the financial strength of the borrower and the borrower's <br />ability to issue bonds (where that can be determined) in addition to the median <br />household income of the community. <br /> <br />4. For Agricultural and Low-Income Municipal borrowers, it is recommended that the <br />percentage of the total allowable costs for the planning, engineering design, and <br />construction of a project which may be financed by the Board be increased from 75 <br />percent to 90 percent. For all other classes of borrowers, in particular for those <br />borrowers With greater financial strength and/or the capacity to issue bonds, the staff <br />may recommend that the Board fund less than 75 percent of planning, design, and <br />construction costs depending upon the particular circumstances of the borrower. <br /> <br />. <br /> <br />5. In recommending loans' for specific projects which involve matters of state-wide <br />concern, such as interstate compacts, the staff may recommend to the Board a lending <br />rate somewhat lower than the adopted rate for that particular class of borrower. <br /> <br />6. Any request for deferment of payment on an existing loan will require either: (1) the <br />borrower to pay interest for the period in which the loan payment was deferred or (2) <br />calculation of a new loan amortization schedule which provides for adding to the <br />principal of the loan the interest which accrues during the period in which the loan <br />payment is deferred. <br /> <br />Staff will prepare appropriate revisions to the Guidelines for Financial Assistance <br />through the Colorado Water Conservation Board Construction Fund to correspond with <br />any of the preceding recommendations which are approved by the Board. <br /> <br />cc: <br /> <br />Linda Bassi, AGO <br /> <br />. <br /> <br />2 <br />