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<br />,. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />POLICY NUMBER: 7 <br /> <br />SUBJECT: <br /> <br />ANNUAL CONSTRUCTION FUND AND SEVERANCE TAX <br />TRUST FUND PERPETUAL BASE ACCOUNT LENDING <br />RATE DETERMINATION <br /> <br />EFFECTIVE DATE: January 25, 1995 <br /> <br />REVISED DATES: November 24,1997 <br />January 27, 1999 <br /> <br />POLICY: <br /> <br />The Colorado Water Conservation Board (CWCB) shall annually <br />establish lending rates for loans to be made from the Construction <br />Fund and Severance Tax Trust Fund Perpetual Base Account. <br />Thirty-year lending rates will be established for agricultural, <br />commercial, and municipal categories of loans using the procedure <br />outlined below: <br /> <br />1. Municipal Rates will be based on the project sponsor's service <br />area median household income, as established by the Colorado <br />Department of Local Affairs, and will be structured as follows: <br /> <br />a. <br /> <br />The Municipal High Income Rate will be equal to <br />the average yield of the 30-year "A" rated* <br />municipal bond, rounded to the nearest one-quarter <br />of one percent, in the twelve months preceding the <br />last annual Board meeting of each year. The High <br />Income Rate will apply where the median <br />household income in the project sponsor's service <br />area is greater than 110 percent of the state-wide <br />median household income <br />The Municipal Standard Income Rate will be <br />calculated as 90 percent of the High Income Rate <br />rounded to the nearest one-quarter of one percent. <br />The Standard Income Rate will apply where the <br />median household income in the project sponsor's <br />service area is equal to SO percent to 110 percent of <br />the statewide median household income. <br />The Municipal Low Income Rate will be calculated <br />as 80 percent of the Standard Income Rate rounded <br />to the nearest one-quarter of one percent. The Low <br />Income Rate will apply where the median <br />household income in the project sponsor's service <br />area is less than 80 percent of the statewide median <br />household income. <br /> <br />b. <br /> <br />c. <br />