BOARD01850

• Board Meeting Date: 1/27/1999
• Description: CF Section - Revisions to the Guidelines for Interest Rate Setting
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
')epartment of Natural Resources

. l1 Sl3Lc: Centennial Building
1313 Sberman Street
Denver. Colorado 80203
Pboae (303) 866-34"1
fA]( [phone]

STATE OF COLORADO

o

Roy Romer
Governor

MEMORANDUM

Jame, S, Lochb""d
Executive Director. DNR
Danes C. Lile. P.R
Director, <::W"CB

TO:

Colorado Water Conservation Board Members

Bill Green /f3 ~ .

FROM:

DATE:

January 9, 1995

...

SUBJECT: Agenda Item 14., January 25-26, 1995, Board Meeting --
-. Water Project Construction Loan Program - Interest Rate Policy for 1995

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BACKGROUND

At the November 4, 1994, Board meeting, the Board adopted the staff recommendation for a
Standard Lending Rate of 5.0 percent for loans to be recommended to the General Assembly
in 1995. At the same time, the staff presented a proposed interest rate structure based on the
type of project (agricultural, commercial, or municipal) and on median household income for
municipal projects.

DISCUSSION

The proposed lending rate structure was.as follows:

1. Municioallending rates would be based primarily on median household income in the
project sponsor's service area and would be structured as follows:

a. The Standard Lending Rate and terms would be two percent less than the
average 30-year U.S. Treasury Bond yield for the preceding twelve months for
a repayment period of 30 years.

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b. The Low Income Rate would be 20 percent less than the Standard Lending
Rate rounded to the nearest one quarter of one percent. To qualify for the Low
Income Rate, the median household income in the project sponsor's service
area must be less than 80 percent of the median household income in Colorado.