BOARD02456

• Board Meeting Date: 11/25/2002
• Description: CF Section - Changes to Existing Loans - Lower Arkansas Water Management Association - Loan Payment Deferral Request
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

Bill Owens
Governor

Greg E. Walcher
Executive Director

MEMORANDUM

Rod Kuharich
CWCB Director

TO:

FROM:

Colorado Water Conservation Board Members

Mike Serlet, P.E., /;/},.
Chief, Water suppfYYanning and Finance Section

Dan McAuliffe
Deputy Director

DATE:

November 15,2002

SUBJECT:

Agenda Item 24a - November 25-26, 2002, Board Meeting
Water Supply Planning and Finance - Changes to Existing Loans
Lower Arkansas Water Management Association-
Loan Payment Deferral Request

Introduction

By letter dated October 28,2002 (attached), the Board of Directors of the Lower Arkansas
Water Management Association (LAWMA) has requested deferments of their three CWCB
Construction Fund loan payments. LA WMA's $122,000 loan payment for Contract #C-153715 is
due May I of each year, its $7,718 loan payment for Contract #C-153756 is due July I of each year,
and its $8,114 loan payment for Contract #C-153678 is due November I of each year. The purpose
for this request is to help offset the District's financial difficulty due to approximately $300,000 in
legal and engineering expenses to be incurred related to requirements of the Kansas v. Colorado
case.

Backl!round

In 1995, the General Assembly passed HB 95-1155 that established the Arkansas River
Augmentation Loan Account in the Construction Fund. The purpose ofthe account is to make loans
to organizations, or entities, for the purchase of augmentation water, or the rights to such water, to
replace out of priority surface water right depletions and to prevent material depletions of usable
state-line flows in violation of the Arkansas River compact.

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