WSP08921

• File Number: 8443.100
• Description: Narrows Unit - Project Description
• State: CO
• Basin: South Platte
• Water Division: 1
• Date: 1/1/1967
• Title: Report on the Narrows Unit Colorado South Platte Division Missouri River Basin Project part 2
• Water Supply Pro - Doc Type: Report/Study

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Economic and Financial Analyses

Year

Assessed value

1960
1961
1962
1963
1964
1965

$67,990,000
67,086,000
66,009,000
67,735,000
65,999,000
65,553,000

The 1965 figure reflects a reversal of the reported decline in
values in recent years "hich .was due mainly to substantial decreases
in the value of petroleum reserves, especially in Morgan County,
"hich more than offset nominal gains in other agricultural areas and
in urban centers. 1be declining value for the generally depleted
oil reserves probably has run its course so that some gains in the
assessed value of the Lo'~r South Platte Water Conservancy District
may be anticipated in the future. For purposes of repayment analysis
the future assessed valuation "hen Narro"s Unit begins operation is
estimated at $70,000,000.

Under Colorado la", the conservancy district may levy an ad
valorem tax of one mill annually "hen construction of the Narrows
Unit is completed and supplemental irrigation ~clter becomes available
from the Narrows Reservoir. Estimated annual revenue of $70,000 from
the one mill levy will first be used to defray administrative expenses
of the district. These a~~nistrative expenses include costs of
maintaining office headQuarters, salaries, payments for travel and
service by members of the board of directors as prescribed by state
law, and other necessary expenses. The total annual district expense
has been estimated at $53,000, or about 76 percent of the total
proceeds from the mill levy. The remaining annual proceeds of $17,000,
or about 24 percent, would be applicable to the payment of allocated
irrigation costs of the Narro"s Unit.

Since the taxing powers of the Lower South Platte Water
Conservancy District are limited, the expected net revenues from
the levy on its assessed valuation will aid in amortizing the allocated
irrigation costs only to a relatively small extent. Conse~uently, the
major portion of the payments by the district to the Government must
be obtained from the water users.

Contracts with individual water users, irrigation companies, and
municipalities have been used in underwriting the costs of supplemental
water from the Colorado-Big 'rhompson Project and they provide the
basis for annual assessment of C-ET Projeot oharges by the Northern

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