2005 Water Projects Bill Fact Sheet

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COLORADO WATER CONSERVATION BOARD Department of Natural Resources Bill Owens, Governor Russell George, DNR Executive Director Rod Kuharich, CWCB Director THE 2005 WATER PROJECTS BILL Background The General Assembly annually authorizes new water project loans from the Constmction Fund and the Perpetual Base Account of the State Severance Tax Tmst Fund. The Construction Fund was created in 1971 to provide low- interest loans for water projects. The fund has financed more than 275 locally sponsored water projects. The CWCB may contribute up to 90 percent of the engineering and constmction cost of a project. The CWCB may also provide non-reimbursable investments for up to 50 percent of the cost of a feasibility study and other water supply investigations. In FY 2005, loan rates vary from: . 2.50 percent for agricultural loans; . 4.00 percent for municipal loans in middle-income areas; to, . 5.25 percent for commercial loans. These rates are adjusted each fiscal year by the CWCB. The Constmction Fund is a partially self-supporting revolving loan fund. Revenues come from the return of principal and interest on outstanding loans, interest earned on the fund's cash balance in the state treasury, and federal mineral royalty distributions. The total equity of the fund exceeds $251 million. The total fund equity includes the outstanding loan portfolio, authorized projects currently under contract and authorized projects not yet under contract. The Severance Tax Trust Fund Perpetual Base Account was established by the General Assembly in 1997. Principal funding comes from the taxes paid by the producers of gas, oil, coal and other minerals. The total equity of the Perpetual Base Account has risen to more than $116 million. The total fund equity includes severance tax revenue, the outstanding loan portfolio that includes authorized projects currently under contract and authorized projects not yet under contract. 2005 Projects Bill Highlights . Authorizes more than $20 million for new loans; . Provides nearly $4 million for satellite monitoring, water supp(v and planning studies, flood control and other projects. For more information, contact Mike Serlet at CWCB at (303) 866-3426 or Mary Marchun at the Department of Natural Resources at (303) 594-8198. CWCB 1313 Shennan Street, Room 721, Denver, CO, 80203 Phone: (303) 866-3441 FAX: (303) 866-4474 Internet: www.cwcb.state.co.us