BOARD01924

• Board Meeting Date: 11/19/2001
• Description: CF Section - Lending Rate Structure for 2002
• Board Meetings - Doc Type: Memo

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STATE OF COLOMOO

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Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

Bill Owens
Governor
Greg E. Walcher
Executive Director
Rod Kuharich
CWCI3 Director
Da(l McAuliffe
Deputy Director

MEMORANDUM

TO: Colorado Water Conservation Board Members

FROM: Mike Ser1et, P.E., chiefg
Water Supply Planning and Finance Section

DATE: November 9, 2001

SUBJECT: Agenda Item 19b - November 19-20,2001 Board Meeting
Water Supply Planning and Finance-
Lending Rate Structure for 2002

Introduction

This memorandum provides a summary of interest rates for the last twelve months
and the staff recommendation for a lending rate structure for CWCB lending programs
for the next six to twelve months depending on the Board's Policy #7 decision from the
previous agenda item 19a.

Discussion

Attached is a graph of weekly yields for the 3D-year "A" municipal bond for the
period November 1, 2000 to November 12, 2001.1 As the graph indicates, the average
yield for the municipal bonds was 5.4 percent for the past twelve-month period.

1 Standard & Poor's definition of an 'A' bond rating is: "A debt rated' A' has a strong
capacity to pay interest and repay principal although it is somewhat more susceptible to
the adverse effects of changes in circumstances and economic conditions than debt in
higher rated categories."

flood Protection - Water Project Planning and Financing. Stream and lake Protection
Water Supply Protection. Conservation Planning