PROJC01741 App Letter

• Contract/PO #: C150178
• Contractor Name: Hillrose, Town of
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM
(Updated July 22, 2004)

Bill Owens
Governor

FROM:

Colorado Water Conservation Board Members
~ 9-:> .
Bruce Johnson. P.E. r '/ ~
Mike Serlet. P.E., Chief'?~
Water Supply Planning a~dRnance Section

Russell George
Executive Director

TO:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: July 9. 2004

SUBJECT: Agenda Item 14b, July 20-21,2004 Board Meeting
Water Supply Planning and Finance Section - New Loans
Town of Hillrose - Water Rights Purchase for Well Augmentation

Introduction

The Town of Hillrose, acting by and through its Water Enterprise Fund (Town). is applying for a
$68,625 loan from the Severance Tax Trust Fund Perpetual Base Account, to finance the purchase of
surface water rights to use for well augmentation. The estimated total cost of the project is $76,250.
Please see the attached project summary and map.

Backaround

The Town is located approximately 15 miles east of Fort Morgan along SH 6. The current
population is 270 residents and the Town currently serves 112 water taps. with the potential to
serve 33 additional taps if existing annexed lots are developed. Typical water usage averages 55
AF per year, but in 2003, with restricted outside watering, the usage was 26 AF. The current water
rate for the Town is $14.50 per month, but the Town has adopted an additional summer water
surcharge of $10 per month that they plan to keep in effect to cover the CWCB loan payment, as
well as address future water system needs. Tap fees vary between $1000 and $1500, depending
on the area of town. and the Town averages about 2-3 taps per year.

The Town currently has one tributary groundwater well (Permit # 018543-F) to supply all of the
water required for the town. For the past two years (2003 and 2004) the well has been augmented
under the Lower Platte and Beaver Canal Company (LP&B) plan of operations. Prior to that it was
covered under both the LP&B plan as well as the GASP (Groundwater Appropriators of the South
Platte) plan. The well is considered a junior well, and the depletions from pumping of the well must
be replaced during times when there is a "call" on the river by a senior downstream water right.

The Town needs to develop its own source of augmentation in order to protect the well from
curtailment under the LP & B plan. The Town owns 1 % shares of LP&B. and will continue to be

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning