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<br />_":i-"" <br />.,,/.~~, <br />:=> .' '. '. <br />':;0 <br />.... <br />~ <br />~ <br />O"l <br /> <br />- - <br /> <br />The District's Water Activity Enterprise <br /> <br />Purpose and Responsibilities - The Southeastern District established the Southeastern Colorado \Valer Activity <br />Enterprise ("the Enterprise") September 21,1995. The original purpose of the Enterprise was to administer the <br />sale of Fryingpan-Arkansas Project Water return flows, and to aHow any revenues to be accounted for under an <br />enterprise fund instead of the District's general fund. This would require the Enterprise to operate as an outside <br />business of the District as defined by state law and the TABOR provisions oj Colorado's constitution. <br /> <br />Since 1995 the District has expanded the responsibilities of the \Vater Activity Enterprise to include the sale of <br />"District-owned" Project \Vater (allocated Project Water that has been returned to the District) and the repay. <br />ment of the Safety of Dams repair costs for Pueblo Dam RCC (roller-compacted concrete) project. In both cases <br />the Enterprise was best suited to administer the financial responsibilities of these ventures, and that aI/owed the <br />District 10 continue to operate within the bounds of TABOR and stay focused on Fryingpan.Arkansas Project <br />operation and repayment. <br /> <br />Return Flow Water Sales - In 1998 the Enterprise sold 16,309 acre-feet of Project Water return flows. These <br />return flows are made available from the non-depleted portion of Project Water deliveries and are used for the <br />augmentation of wells within the Southeastern District boundaries. Sixleen different well-owner groups or indi. <br />viduals used Project return flows to meet their replacement water requirements under the Division 2 well rules <br />(see table on page 17). <br /> <br />Safety of Dam's Repayment - On July 15,1998 the Enterprise, under authority from the District, executed a <br />repayment contract with the Bureau of Reclamation for the District's share of the costs ior the Safety of Dams <br />repair work at Pueblo Dam. The contract will require the Enterprise to pay 13.63% of the total project costs <br />(5.42% for M&l users and 8.21% for irrigation users). Total project cost was estimated to be $29,000,000, which <br />would make the Enterprise share $4,350,000. <br /> <br />Financing SOD Repayment - The Enterprise will use a combination of District reserve funds and annual sur. <br />charges (beginning in 1999) on Fry-Ark Project Water and storage ieatures. Reser..e funds will be used to make <br />advanced payments on the M&I portion of the Safety oi Dams (SOD) work in order to avoid interest charges that <br />would apply on any long-term financing option. Surcharge revenues will be used to make annual $60,000 per <br />year paymenls on the SOD irrigation debt, and to recoup lost interest earnings to the District. Interest charges <br />are not assessed on the irrigation portion of the repayment obligation. <br /> <br />Safety of Dams Repayment Surcharges include: <br /> <br />Project Water <br />\Vinter Water Storage <br />Carryover Storage <br />If & \Vhen Contract Storage (in Disl.) <br />If & \Vhen Contract Storage (out of Dist.) <br />Return Flows <br /> <br />$1.00 per acre-foot <br />50.25 per acre-ioot <br />$ 1.00 per acre-iool <br />SO.50 per acre-foot <br />S2.00 per acre-foot <br />$0.50 per acre-ioot <br /> <br />These annual surcharges will be in effect throughout the repayment period (estimated 10 be 40 years) and are <br />subject to change by action oi the Enterprise Board. <br /> <br />16 <br />