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<br />JtJvv-/tf$2 <br /> <br />PROPOSED RESOLUTION <br />9f the <br />WESTERN STATES WATER CO~NCIL <br /> <br />con.cerning <br />WATER INSURANCE FUND <br /> <br />WHEREAS, the need for alternative financing mechanisms <br /> <br />to fund the irrigation component of water projects is demon- <br /> <br />strated by the enormous backlog of authorized projects; and <br /> <br />WHEREAS, local water user entities could sell bonds to raise <br /> <br />private funds at an interest rate of %% to 1% less than would <br /> <br />otherwise be the case if such bonds were insured by the United <br /> <br />States on a self-sustaining basis; and <br /> <br />. <br />WHEREAS, providing local water user entities such an <br />alternative financing mechanism would enable existing projects <br />to be expeditiously completed, provide for necessary rehabilitation, <br /> <br />and avoid delay in development of multiple use projects because <br />of the need to finance the irrigation components; and <br /> <br />WHEREAS, such an approach is within the present Administra- <br /> <br />tion's policy that financing should be borne by beneficiaries <br /> <br />and users; and <br /> <br />WHEREAS, the obligation of the United States in guaranteeing <br /> <br /> <br />payment in case of default would be minimal since (1) defaults <br /> <br />in'payments on irrigation water use entities occur rarely, if <br /> <br />at all, and (2) such a guarantee could be backed by a lien on <br /> <br />the revenues from the projects insured by the United States; <br /> <br />and <br /> <br />WHEREAS, legislation has been introduced in Congress (HR <br /> <br /> <br />4380) to' accomp Ush the above purpos es. <br />