FLOOD03596

• County: Statewide
• Community: State of Colorado
• Basin: Statewide
• Title: Water Project Development Financing Needs
• Date: 6/4/1982
• Prepared For: Colorado Water Congress
• Prepared By: Paine Webber, Co.
• Floodplain - Doc Type: Educational/Technical/Reference Information

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(b)

Revenues derived from investment of reserve funds,
bond funds and earnings support the financing and
operating costs of a project.

2. Taxes

(a) Projects can be financed by the pledge of taxes
which may take a variety of forms:

(1) ad valorem taxes

(2) sales, excise and franchise taxes

(3) assessments (such as
conservancy districts)

those

levied

by

(4) mineral severance taxes and royalty and
lease payments

(b) The use of tax sources often proves to be politi-
cally controversial.

3. Private and Public Corporate Guarantees

(a) Private corporate guarantees can be used to support
tax-exempt financing for qualified projects, as
outlined by Dennis Deveney.

(b) Public corporations and agencies, such as Platte
River Power Authority, can enter into contracts to
which the credit of the public corporation or
agency is pledged.

B. Potential Credit Arrangements

1. "Double-Barrel Bonds" - payment secured by revenues
from project and by tax pledge.

2. Joint agencies or joint ventures that "spread the risk"
by pooling the credit or purchasing power of a number
of jurisdictions (for example, Platte River Power
Au thori ty) .

3. Joint agencies or joint ventures that pool the credit
or purchasing power of a number of jurisdictions, and
further enhance the credit by a pledge of the partic-
ipants' assessment or taxing powers (for example, the
Windy Gap Project).