BOARD02430

• Board Meeting Date: 5/24/2004
• Description: CF Section - Financial Matters - Lending Rate Structure for FY 2005
• Board Meetings - Doc Type: Memo

;.

e

.

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Shennan Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
WWW.cwcb.state.co.U5

MEMORANDUM

TO:

Colorado Water Conservation Board Members

Mike Serle!, P.E., Chief '---Yij
Water Supply Planning an~~~ce Section

FROM:

DATE:

May 14, 2004

Agenda Item 11- May 24-25, 2004 Board Meeting
Water Supply Planning and Finance Section - Financial Matters
Lending Rate Structure for FY 2005

SUBJECT:

Introduction

Bill Owens
Governor

Russell George
Executive Director

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

This memorandum provides a summary of interest rates for the last six months and the staff
recommendation for a lending rate structure for CWCB lending programs for the next twelve months.
The recommendation is in accordance with the Board's Financial Policy #7 - Annual Construction
Fund and Severance Tax Trust Fund Perpetual Base Account Lending Rate Determination.

Discussion

Attached is a graph of weekly yields for the 30-year "A" rated municipal bond for the period
November 10, 2003 to April 26, 2004,1 As the graph indicates, the average yield for the municipal
bond was 4.85 percent for the past six-month period.

1 Standard & Poor's defmition ofan 'A' bond rating is: "A debt rated 'A' bas a strong capacity to pay interest and repay
principal although it is somewbat more susceptible to the adverse effects of changes in circumstances and economic
conditions tban debt in higher rated categories."

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning