Southwest - Dry Gulch Reservoir_BRT Approval Letter

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successfully de-Bruced in the November 2006 election, thereby alleviating potential TABOR Issues. The SJWCD plans to fund the remaining $8.1 million balance of the Reservoir land acquisition through a series of finance strategies to include: a) a current mill levy of approximately $60,000 per year; b) reserve accounts of $300,000; c) impact fees of approximately $350,000 per year; and d) a proposed increase to the current mill levy on the November 2007 General Election ballot to generate, in total, approximately $750,000 per year. In the event the ballot issue fails, the SJWCD, in conjunction with the Pagosa Area Water and Sanitation District (PAWSD), has obtained a commitment to increase water rates to pay for project financing, The SJWCD has strong support for the Reservoir project from the PAWSD, the Town ofPagosa Springs, Archuleta County, and all of the various and affected water companies/agencies in the District. In addition, the purchase of land for Reservoir development meets the following CWCB water management objectives as follows: · It will sustainably meet municipal and industrial demands; . It will sustainably meet agricultural demands; · It optimizes existing and future water supplies; · It will substantially enhance recreational opportunities; · It promotes cost effectiveness as the only economically viable site location; · The project will comply with all applicable laws, regulations, and water rights; and · The project provides an excellent location and supply of raw water for forest fire suppreSSIOn. Moreover, funding assistance will help meet Colorado's future water needs--namely, projected capacity shortfalls in the San Juan River Basin, It also addresses a gap between available water supply and future needs as identified in the Statewide Water Supply Initiative and the roundtable basin-wide water needs assessment. In addition, storage of this Headwater preserves water quality and provides drought protection. As commented by the San Juan National Forest Regional Forester, "the Reservoir will provide an excellent source of water for forest fire fighting," Finally, the San Juan Reservoir will protect Colorado's water share from future Lower Compact States designs on Colorado water by allowing the District to store entitled rights. We thank you in advance for the opportunity to apply for this grant and for your time and consideration, Please direct any questions to Fred Schmidt, the SJWCD Chair, at (970) 903- 8675. Until then, we anxiously await your decision, Attachments