Policy

Under certain circumstances, CCCD, in exercising its discretion, has the ability to enter into a contractual arrangement with a third party to make a loan/grant to the third party for a designated purpose. Loans and grants are based upon the nature of the application, and if a loan or grant is made by CCCD, it will be based upon the goals and objectives of CCCD, recognizing that goals and objectives may change from time to time. Further, any loan or grant shall be consistent with the enabling legislation for CCCD under Colorado Revised Statute 37-2-101 et al., and its general powers under Colorado Revised Statute 37-3-103 et al. Grants for conservation purposes and development of parks and recreational purposes will be considered.

Any potential recipient of loan or grant from CCCD shall meet the following general criteria: (a) it benefits a project which is located within the exterior boundaries of CCCD; and (b) the project fits within the goals and objectives of CCCD.

A grant is designed to benefit a project that has an overall benefit to the community as a whole. A loan is designed for a project that benefits an unincorporated ditch or an incorporated ditch, or that directly benefits a group of individuals/water users as opposed to the community as a whole.

Prior to CCCD making a loan to a group of individuals/water users/ditch, the CCCD Board shall consider the following factors:

(a) The overall purpose of the project.

(b) Assurances that the monies will be used for the project.

(c) The beneficiaries of the project, both direct and indirect.

(d) The manner the project fits within the overall goals and objectives of the Board.

(e) The cost of the project – including whether it is a one-time cost or one of a continuing nature.

(f) Whether the direct beneficiaries of the project have funding sources, including third-party commitments, to pay for all or part of it.

(g) Other private or governmental sources that may be available to contribute toward funding the project.

(h) The sustainability of the project, once built or improved, and its projected life.

(i) Assurances that the loan will be repaid and potential sources of security for the loan. Due consideration shall be made concerning the ability to repay such loan, whether the ditch is incorporated or unincorporated, either on its own or by causing its individual owners of the ditch or shareholders to participate.

2) If an incorporated or unincorporated ditch is a direct or incidental beneficiary of a CCCD loan, prior to CCCD making such loan, the ditch company, if incorporated, or the individual owners of the ditch and water rights, if unincorporated, must first demonstrate the ability to responsibly regulate the internal financial affairs of the ditch. Repayment terms and interest rate on any loan may appropriately take into account the overall financial condition of the ditch. An incorporated ditch may lien its water rights as part of any loan arrangement. Promissory notes and deeds of trust may be used as part of the closing documents as part of making the loan.

Prior to CCCD disbursing monies through a grant to individuals or a third-party for a project, the CCCD Board shall consider the following factors:

(a) The overall purpose of the project.

(b) Assurances that the monies will be used for the project.

(c) The beneficiaries of the project, both direct and indirect, with an emphasis on whether the community as a whole is the beneficiary of the project.

(d) The manner the project fits within the overall goals and objectives of the Board.

(e) The cost of the project, including whether it is a one-time cost or one of a continuing nature.

(f) Whether the beneficiaries of the project have funding sources, including third-party commitments, to pay for all or part of it.

(g) Other private/non-profit/governmental sources that may be available to contribute toward funding the project.

(h) The sustainability of the project, one built or improved, and its projected life.

2) On an annual basis, CCCD shall determine, for each twelve-month period, the following:

(a) The amount of CCCD funds that will be allocated for grants and the amount of CCCD funds that will be allocated for loans for such twelve-month period.

(b) The date for which any written application for a loan or grant must be submitted to CCCD.

(c) The date in which all pending applications will be approved, approved in part, or denied for any loans or grants for that year, recognizing that the actual use of monies loaned or subject to the grant may not occur, in whole or in part, in the year of approval.

(d) For 2013, the deadline for applications shall be July 15, 2013, and the deadline for making a determination for all applications for grants or loans shall be on or before October 30, 2013.