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<br />. <br /> <br />. <br /> <br />. <br /> <br />1.3.2 Lending Policy <br /> <br />a. The Board's Construction Fund lending policy will be reviewed by the Board in March of each <br />year. [Aug 94] <br /> <br />b. The Board and the staff of the CWCB will attempt to maintain an overall, long-term rate <br />of return of no less than 4.0 percent on the aggregate amount of all loans and grants made <br />through the Construction Fund in order to offset the long-run impacts of price inflation <br />and to maintain the integrity of the Fund. [Nov 97] <br /> <br />c. The CWCB may loan a maximum of 50-percent of the cost of a feasibility study for a water <br />project. The Board's participation in feasibility study costs must be repaid whether a project <br />is constructed or not. Repayment for a feasibility study loan may be incorporated in <br />repayment for a design and construction loan. [Aug 94] <br /> <br />d. The CWCB loan for any project must be repaid to the Construction Fund under repayment <br />terms to be established by the Board. [Aug 94] <br /> <br />e. <br /> <br />At the last Board meeting of each calendar year, the CWCB staff will present to the Board <br />a summary of the thirty-year 'A' rated municipal bond yields [Nov 97] <br />for the preceding twelve months. Based on this summary, the staffwill recommend to the <br />Board a lending rate structure for all Construction Fund and <br />Severance Tax Trust Fund perpetual Base Account [Nov 97] projects <br />which are to be recommended to the General Assembly in the following calendar year. [Jan <br />95] <br /> <br />f. A specific lending rate for each project will be recommended to the Board by the staff <br />based on an analysis of: the type of project, the project sponsor's ability to pay, and the <br />significance ofthe project to the development of the State's water supplies. Lending rates <br />will be established for agricultural, commercial, and municipal project purposes using the <br />following definitions: <br /> <br />· Agricultural projects are those sponsored by ditch companies, irrigation districts, or any <br />other agricultural entity to provide agricultural water supplies. <br /> <br />· Commercial projects are those sponsored by any private individual or firm using or <br />supplying water for other than agricultural purposes. <br /> <br />· Municipal projects are those sponsored by established cities, towns, or special districts <br />organized under Colorado state statutes. [Jan 95] <br /> <br />g. <br /> <br />For municipal projects, separate lending rates will be established for low income, <br />standard income, and high-income service areas based on median household income in <br />the project sponsor's service area. l;un :;~J <br />