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<br />Penrose Water District
<br />November 13-15, 2006
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<br />Agenda Item 10c
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<br />In drought years, the amount available to the District is further reduced below the lease contract .'..
<br />amount. When the BPW water supply, physically or legally available under their water rights,
<br />becomes inadequate to allow them to fully meet the District's water service commitment, the water
<br />allocation to the District may be reduced: Such a reduction occurred in 2002 and 2003, and in
<br />years preceding the 2002 drought. For instance, in 2003, the contract table amount was 694 acre
<br />feet, but the District allocation was reduced to 508 acre feet. In response to the reduced allocation,
<br />the District instituted severe watering restrictions and did not allow any outside water use during
<br />portions of 2002 and 2003. Subsequently, based on a previous 1999 water availability study, the
<br />impacts of the 2002 drought, and a 2003 water demand study, the District concluded that Beaver
<br />Creek is not a reliable source of raw water supply, and diversification in the system through
<br />alternative water supplies is vital. Also, it was also determined that the District's demand for water
<br />would exceed the maximum BPW lease contract table amount of 1,000 acre feet per year by the
<br />year 2023. In July 2005, the District acquired the Goodwin Ranch, 456 acres of ranch land and
<br />water rights near Howard, for $3,000,000 using bridge financing from the Fremont National Bank.
<br />The acquisition is expected to yield 339 acre-feet of water. A Water Court filing has been made.
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<br />The proposed project includes the acquisition of the water rights from the ranch purchase, 10/1 ih of
<br />the Pleasant Valley Ditch, with a change in use and change in point of diversion approximately 50
<br />miles downstream to Sec. 13, T19S, R69W. Water would be diverted through the installation of 7
<br />shallow alluvial wells immediately north of the Arkansas River, and then pumped approximately 5.8
<br />miles through a 12-inch transmission line to Brush Hollow Reservoir. As part of the project, Brush
<br />Hollow Reservoir will be enlarged by raising the dam four feet. On November 9, 2006 the District
<br />and the BPW Board of Directors will meet to sign a Letter of Support relating to the expansion of
<br />Brush Hollow Reservoir. The proposed project and water rights purchase will supplement the
<br />existing BPW lease, and lessen the District's reliance on BPW leased water, particularly in drought .
<br />situations.
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<br />Feasibilitv Studies
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<br />The District, through its engineers Leonard Rice Engineers, Inc. and GMS, Inc. Consulting
<br />Engineers, has completed the feasibility study in accordance with CWCB guidelines. The study
<br />includes an assessment of alternatives for raw water acquisition, utilization and delivery.
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<br />Penrose Water District
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<br />The District is a Title 32 Special District, and was created by order and decree of the Fremont
<br />County Court on July 20, 1967. The District relies on a combination of user fees and property taxes
<br />to fund operations and maintain the water system. The District is governed by a 5-member Board
<br />of Directors, and employs a District Manager. The District is also governed by a set of By-Laws.
<br />The District receives approximately $100,000 annually in property tax, based on an assessed
<br />valuation of $21,559,919 (2005). The property tax levy is split into two components: 1.65 mills for
<br />all General Operating purposes (subject to TABOR limitation); and 3.00 mills for capital
<br />expenditures (TABOR exempt as approved by the electorate in 1997 for 20 years) restricted to
<br />acquisition, delivery and storage of raw water. The 3.00 mill funding is deposited in a Special
<br />Revenue Fund. In addition, the District uses an increasing block rate billing structure, currently
<br />$18.00 per month base charge (allows 2000 gallons), and $3.90 per 1000 gallons after 2000
<br />gallons consumption charge. The District bills its customers on an equivalent residential unit (ERU)
<br />basis, which increases its user base from a water rate standpoint to the equivalent of 1836 users.
<br />Not including loans, the total revenue for the District is about $1.1 million. The price of a new water
<br />tap is $12,000. .
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