STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 97-001

APPROVAL OF A STAFF PROPOSAL TO BETTER MANAGE THE

STATE REVOLVING FUND (SRF) REPAYMENT ACCOUNT

WHEREAS:

1. The Repayment Account currently has a cash balance in excess of $140 million.

2. Current procedures for approving and issuing loans may result in nonuse of these funds for five to seven years because of the lack of sufficient projects to use the Repayment Account monies.

3. The Repayment Account cash balance is expected to exceed $540 million before the first SRF loan is written against it assuming no changes are made to the SWRCB's existing procedures.

4. The Division of Clean Water Programs has prepared an Issue Paper recommending changes to better use funds in the Repayment Account.

5. The Issue Paper has been reviewed by Tri-Tac, who has expressed support for the proposal.

6. Conditions regarding funding needs and availability of monies may change periodically.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves the issuance of a preliminary loan commitment against future repayment monies based on the scheduled date for issuance of the loan.

2. Approves the Proposal to allow loans to be written for 125 percent of the annual repayment amount for the next five (5) years.

3. Approves the raising of the funding cap to $50 million per year per agency.

4. Directs the Division of Clean Water Programs to prepare a report each September with the State Revolving Fund Priority List development that analyzes all relevant factors necessary to determine the appropriate annual funding cap and to assess the impacts of this management procedure on the SRF Program.

CERTIFICATION

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on January 23, 1997.

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Maureen Marché
Administrative Assistant to the Board