C150160 Approval Letter - Laserfiche WebLink

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Central Colorado WCD November 19-21, 2003 Agenda Item Be (Updated November 21,2003) Alternative No.2: Purchase senior water rights and construct storage to cover a 300-day period of call. This action was selected, as it would result in existing member wells being shut off approximately two out of fifty years. Approximately 3,000 acre-feet of gravel pit storage and 6,500 acre-feet of senior water rights would be needed. Alternative No.3: Purchase senior water rights and construct storage to cover a 365-day period of call. This action was not selected due to the extreme cost involved. The drought of the 1950s resulted in a call period of approximately 600 days (nearly two years), and would require an expenditure of funds in excess of $35 million to accumulate the necessary augmentation water. This amount of water (approximately 4,000 acre-feet of gravel pit storage and 12,500 acre-feet of senior water rights) would create a severe financial burden on growers in the area, and would not be economical even during a good farm economy. Selected Alternative No.2 The Subdistrict will purchase senior water rights in the Greeley and/or Fort Morgan areas, and will develop lined gravel pit storage reservoirs in the Greeley area. The cost of senior water rights around Greeley is approximately $3,000/acre-foot consumptive use, while in the Ft. Morgan area the figure is approximately $1 ,300/acre-foot consumptive use. (The Subdistrict expects to pay an average of $2,500 per acre-foot for water rights purchased as part of this project.) The cost of lined gravel pit storage reservoirs is approximately $2,200/acre-foot of storage. Senior and junior water rights would be utilized to fill these storage structures. The Subdistrict would work with local irrigation companies to deliver the water rights back to the South Platte River in a manner acceptable to both the company and the State Engineer. Cost estimate: Senior water rights - Storage facilities - Total 6,500 acre-feet at $2,500 per acre-foot 3.000 acre-feet at $2,200 per acre-foot: 9,500 acre-feet $ 16.25 m $ 6.60 m $ 22.85 m The GMS-CCWCD has been acquiring senior water rights and building storage facilities using funds from bond financing authorized by the November 5,2002 TABOR election. Table 1 shows the water rights acquired in 2003. Funds from the 2002 CWCB loan became available in July 2003 and will be used to acquire added senior water rights, to build additional storage, and to refinance the District's existing debt. The follow-up $5,000,000 CWCB loan will be used to acquire additional senior water rights and construct new storage in 2004, and 2005. The exact additional rights that the GMS- CCWCD will purchase are yet to be determined, because of the uncertainties of availability and purchase price. Financial Analvsis The estimated cost of the total project is $22.85 million. Staff recommends a follow-up loan in amount of $5 million. Total loans for the project will equal $20 million, or 90 percent of the total project cost. The GMS-CCWCD will repay both loans using revenues derived from a property tax increase. The District will fund its 10% cost share from existing reserves. Table 3 is a summary of the financial aspects of the total project. 4