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<br />/ <br />.// .~ <br /> <br />COLORADO WATER CONSERVATION BOARD <br />Department of Nalural Resources <br />n1 StalE:' C(I'ntf'nnial Building <br />, 3'3 ShE:'rman Slrect <br />Denver, Coloradv 8020) <br />Phone: 00)) 6&6-)J.41 <br /> <br />SG\TE OF COLOPv\DC <br /> <br />~~,.<;: <br />. ,. ~ <br /> <br />~ <br /> <br />'- <br /> <br />M E M 0 RAN DUM <br /> <br />TO: Lee Maurer <br />Joint Budget Committee <br /> <br />FROM: Bill McDonald /KLi). <br />DATE: January lS. 1988 <br /> <br />RI)...R.(lmeo( <br />c.o\"<:>rnor <br />]. William McDonald <br />DireCtor . <br />Dill"idW.Walker <br />Deputy OtreCtor <br /> <br />SUBJECT: CWCB Construction Fund <br /> <br />In response to your request. it appears that up to $13 <br />million could be borrowed from the construction fund without <br />adversely affeccing the construction schedule of any already <br />authorized project or any project currently pending for <br />authorization in S.B. 30 so long as the money borrowed is <br />repaid by July 1. 1989. I reach this conclusion based upon <br />information provided by the Central Accounting System as to the <br />unencumbered cash in the construction fund and based upon my <br />best estimates of project construction schedules and of income <br />to the construction fund for the remainder of this fiscal year <br />and fiscal 1988-89. Please find enclosed details concerning how <br />I arrived at my estimates. <br /> <br />I would note that if $15 million were borrowed (which is <br />the amount of unencumbered cash I project to be available on <br />June 30, 1989, absent any borrowing), that would leave no <br />margin for having underastimated the expenditures needed for <br />projects which we are trying to construct in the next 18 <br />months. Since there are many variables affecting construction <br />schedules over which I have little control. I would strongly <br />recommend that not more than $13 million be borrowed, if <br />needed. in order to give me a margin of safety. <br /> <br />While the unencumbered cash balance in the construction <br />fund is $53.2 million. all of those funds are in fact allocated <br />to already authorized projects. There is an unencumbered cash <br />balance available only because there is a period of time <br />between project authorization and the initiation of <br />construction. which lag time is needed to prepare final designs <br />and specifications. acquire regulatory permits. prepare loan <br />documents. etc. <br /> <br />5786E <br />