TITLE: CONCERNING THE FUNDING OF COLORADO WATER CONSERVATION BOARD PROJECTS, AND MAKING APPROPRIATIONS IN CONNECTION THEREWITH.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Colorado Water Conservation Board Construction Fund	Interest Earnings from Loan Account
State Expenditures Colorado Water Conservation Board Construction Fund Colorado Water Conservation Board Construction Fund transfer to Colorado River Recovery Program Loan Account	$2,871,000 2,000,000
FTE Position Change	None	None
Local Government Impact — None

This bill, as amended by the Senate Agriculture Committee (Senate Journal, March 19, 1998, page 505), authorizes the Colorado Water Conservation Board to loan moneys from the Colorado Water Conservation Board Construction Fund to enable the construction of the water resources projects identified in Table 1.

Table 1 - New Loans	Loan Amount
Green Ridge Glade Reservoir	$2,000,000
DeWeese Dam Rehabilitation	734,000
North Poudre Irrigation Company	500,000
Idaho Springs Reservoir	955,000
Greeley and Loveland Irrigation Co - Equalizer Dam	308,000
Blue Lake Owners Assoc - Raw Water Irrigation	900,000
City of Ft Morgan - Raw Water Pipeline	4,000,000
Pawnee Creek Flood Control	550,000
Chatfield South Water District	500,000
Riverside Reservoir Spillway Rehabilitation	450,000
Big Windsor Reservoir Pump Station	925,000
Sedgewick Augmentation Reservoir	1,700,000
Total - Water Conservation Board Construction Fund	$13,522,000

The bill authorizes the board to loan moneys from the Severance Tax Trust Fund Perpetual Base Account to enable the construction of water resources projects identified in Table 2.

Table 2 - New Loans	Loan Amount
Highland Ditch - Foothills Reservoir Dam	$1,040,000
City of Ft. Morgan - Raw Water Pipeline	4,000,000
Norther Colorado Water Assoc - Wells and Water Rights	900,000
Total - Severance Tax Trust Fund Perpetual Base Account	$5,940,000

The bill authorizes the board to increase the amounts of loans previously authorized for water resources projects identified in Table 3.

Table 3 Loan Increases	Prior Authority	Prior Loan Amount	Increase	Revised Loan Amount
Twin Lakes Dam	SB 87-15	$412,500	$375,000	$787,500
Cottonwood Pipeline	HB 95-1155	$750,000	172,000	922,000
Trinidad Project	SB 97-008	500,000	500,000	1,000,000
Total - Water Conservation Board Construction Fund		$1,662,500	$1,047,000	$2,709,500

The amended bill decreases the amounts of loans previously authorized for water resources projects identified in Table 4.

Table 4 Loan Deauthorizations	Prior Authority	Prior Loan Amount	Decrease	Revised Loan Amount
Dolores Project	HB 83-1102	$5,617,392	$5,617,392	$0
Rio Grande Water District	SB 87-15	250,000	250,000	0
Oak Creek - Sheriff Reservoir	SB 87-15	300,000	300,000	0
Wadley Farms Homeowners	SB 96-153	500,000	500,000	0
Cedar Mesa Ditch Co	SB 94-029	10,500	10,500	0
Lateral 35 Assoc	SB 94-029	35,000	35,000	0
City of Walsenberg - Martin Lake	SB 94-029	86,000	86,000	0
Goodhue Ditch and Reservoir	HB 95-1155	19,000	19,000	0
Total - Water Conservation Board Construction Fund		$6,817,892	$6,817,892	$0

The amended bill appropriates moneys from the Colorado Water Conservation Board Construction Fund to the Department of Natural Resources for FY 1998-99 for the water resources projects identified in Table 5.

Table 5 Water Resources Projects	FY 1998-99 Appropriation
Rio Grande Compact Decision Support System - Contractor	$2,000,000
Satellite Monitoring System - Maintenance	120,000
Arkansas River Well Measurement Program	75,000
Chatfield Reservoir Feasibility Study	500,000
South Platte River Multi-objective Plan	56,000
Elk and Yampa River Floodplain Master Plan	30,000
Total Appropriations	$2,781,000

The bill creates the Colorado River Recovery Program Loan Account within the Colorado Water Conservation Board Construction Fund for the purpose of making loans to the Colorado River and San Juan River recovery programs. The bill directs the State Treasurer to transfer $2 million from the construction fund to the loan account. The use of funds in the loan account will be subject to approval by the General Assembly under terms to be established by the General Assembly. The loans will be subject to an interest rate and repayment provisions as determined by the conservation board. Any interest earned on the moneys in the loan account shall be credited to the construction fund.

In addition to the appropriations shown in Table 5, the amended bill appropriates $90,000 from the Water Conservation Board Construction Fund to the Department of Natural Resources for allocation to the Denver Museum of Natural History and the United States Geological Society to drill and core a 2,000 foot research well near Kiowa.

The amended bill authorizes the Water Conservation Board to make a nonreimbursable grant of not more than $1,250,000 from the Fish and Wildlife Resources Account in the Water Conservation Board Construction Fund to participants of the Colorado River Recovery Implementation Program rather than the United States Fish and Wildlife Service for the Grand Valley water management project.

The amended bill authorizes the Water Conservation Board to expend any contributions credited to the Water Conservation Board Construction fund. The amended bill specifies that the appropriation of $4,000,000 from the Severance Tax Trust Fund for FY 1997-98 to the conservation board for the Eagle Park Reservoir Rehabilitation project shall remain available until the project is completed. This bill will become effective upon the signature of the Governor.

The provisions of this bill affect state cash fund revenue and expenditures. Therefore, the bill is assessed as having a fiscal impact.

Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

This fiscal note would imply the Department of Natural Resources would require a Colorado Water Conservation Board Construction Fund appropriation of $2,871,000 for FY 1998-99 to implement the provisions of this amended bill.

The department would also require a transfer of $2,000,000 from the Colorado Water Conservation Board Construction Fund to the Colorado River Recovery Program Loan Account for FY 1998-99.