FLOOD09864

• County: Statewide
• Community: State of Colorado
• Basin: Statewide
• Title: Water Project Insurance Fund Legislation - Federal
• Date: 5/20/1983
• Floodplain - Doc Type: Projects ‎(non-floodplain)‎

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RESOLUTION
of the
WESTERN STATES WATER COUNCIL
Concerning
WATER INSURANCE FUND
Monterey, California
January 15, 1982

"

WHEREAS, the need for alternative financing mechanisms to
fund the irrigation component of water projects is demonstrated
by the enormous backlog of authorized projects; and

WHEREAS, local water user entities could sell bonds to raise
private funds at an interest rate of ~% to 1% less than would
otherwise be the case if such bonds were insured by the United
States on a self-sustaining basis; and

WHEREAS, providing local water user entities such an alterna-
tive financing mechanism would enable existing projects to be
expeditiously completed, provide for necessary rehabilitation,
and avoid delay in development of multiple use projects because
of the need to finance the irrigation components; and

WHEREAS, such an approach is within the present Administra-
tion's policy that financing should be borne by beneficiaries
and users; and '

:11 WHEREAS, the obligation of the United States in guaranteeing
payment in case of default would be minimal since (1) defaults
in payments on irrigation water use entities occur rarely, if
at all, and (2) such a guarantee could be backed by a lien on
the revenues from the projects insured by the United States;
and

WHEREAS, legislation has been introduced in Congress (HR
4380) to accomplish the above purposes.

NOW THEREFORE BE IT RESOLVED by the Western States Water
Council to support legislation to (1) establish a water project
insurance fund in order to assist water authorities finance the
construction of reclamation, irrigation, and other water related
projects, and (2) authorize the Secretary of Interior to adminis-
ter such fund.

BE IT FURTHER RESOLVED, that any such legislation should
initially be funded from general appropriations which would be
repaid to the federal treasury, but that in the event monies
from the Reclamation Fund are required, such money should only
be required to the extent necessary to guarantee bonds for the
construction, maintenance, and rehabilitation of irrigation works
for the reclamation of arid lands.

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