BOARD02436

• Board Meeting Date: 9/25/2000
• Description: CF Section - Financial Matters
• Board Meetings - Doc Type: Memo

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POLICY NUMBER: 13

SUBJECT:

TARGET GROWTH RATE FOR THE COMBINED
EQUITY OF THE CONSTRUCTION FUND AND
SEVERANCE TAX TRUST FUND PERPETUAL BASE
ACCOUNT

EFFECTIVE DATE: October 1, 2000

POLICY:

The Colorado Water Conservation Board (CWCB) will attempt to
maintain an overall growth rate for the combined equity of the
Construction Fund and Severance Tax Trust Fund Perpetual Base
Account (STTFPBA) of no less than the long-tenn rate of
inflation, as established by appropriate construction cost indices,
plus 0.5%.

PURPOSE:

To offset the impacts of cost inflation, to maintain !he financial
integrity of the CWCB Construction Fund and STTFPBA and to
provide a process for estimating the financial resources ayailable
for grants from the Construction Fund in any given year.

APPLICABILITY: This policy and procedure apply to !he CWCB Construction Fund
and STTFPBA.

PROCEDURE:

The overall growth rate for the combined fund equity of the
Construction Fund and STTFPBA will be presented as part of the
Comprehensive Annual Financial Report by CWCB staff at the
September Board meeting each year. Staff will present an annual
estimate of funds available for grants relative to various rates of
growth in combined fund equity including the target growth rate.
At the same Board meeting each year, staff will present a summary
of long-tenn construction cost indices with any recommendations
for revisions to the target growth rate in combined fund equity.