Board Meeting 12/03/1981

• Board Meeting Date: 12/3/1981
• Description: Agenda, Minutes, Resolution
• Board Meetings - Doc Type: Meeting

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APPENDIX B-2

STATE OF COLORADO

COLORADO WATER CONSERVATION BOARD
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Members, CWCB

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Go"~rnor
',. Wilii;lm ."-icDon,;;;!
Director
David W.alker
Oeput~' O;reclor

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FROM:

. Bill McDonald

DATE:. December 1, 1981

SUBJECT: Agenda Item 7a, December 3-4,1981, Board Meeting--
Overview and Status Report on Construction Fund and
Severance Tax Trust Fund

Introduction

The potential need for front-end cost-sharing on federal
projects and the request by three entities to have the Board
recommend their projects to the General Assembly for 100 percent
financing and/or grants raise issues of first impression for the
Board. Furthermore, it is clear that agricultural projects of
any magnitude at all will frequently need more than the 50
percent financing presently provided by the Board's construction
fund program and will need grants as well.

The purpose of this memorandum is to provide the Board with
an overview of the presently available mechanisms for state
financing of water projects and the associated issues concerning
project financing. In addition, the last two sections of this
memo will briefly summarize the financial status of the
construction fund and the severance tax trust fund.

Existing State Financing Mechanisms
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There are presently five primary mechanisms for the state
financing of water projects: (1) direct appropriations by the
legislature to a project, (2) the Board's construction fund, (3)
the. severance tax trust fund, (4) the oil shale trust fund, a~d
(5) the Water Resources and Power Development Authority. Each
of these differs with respect to the source of monies a~ailable
for expenditures and the statutory provisions which govern the
terms for financing, repayment, making of grants, etc. These
differences are discussed briefly in the attached paper entitled
"Existing State Financing Mechanisms for Water Project
Development."

APPENDIX B-2

COLORADO WATER CONSERVATION BOARD, Frede,';ck V. Kroeger, Chairman
Robert A, Jackson, Vice Chairman. John R. Fetcher, Steamboat Springs
C.M. Furneaux, Walden. Floyd I.. Getz, Monte Vista. Patrick A, Gormley, Grand Junction
Richard W. Johnston. Montrose. Oavld W. Rohci!"lS Denver. He-rbl?!r~ t-t. '/a"demoer. ~te(ljng