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<br />Riverside Irrigation District <br />May 16-17, 2006 <br /> <br />Agenda Item 11 b <br /> <br />several years, due to increases in value of CBT water. The current assessment levy is $10 per <br />acre. In 2004, the total revenues for RID were $780,845. <br /> <br />Following adoption of a budget resolution in October, the RID certifies the required levy to the <br />Morgan County Commissioners, with copies tothe State Treasurer and Department of Local Affairs. <br />State revenue laws pertaining to the assessment, levying, and collection of property taxes <br />(including enforcement of penalties and forfeiture for delinquent taxes) are applicable to RID. RID <br />may also refuse delivery of water to lands until all past due or delinquent assessments have been <br />paid in full. (C.RS 37-43-143.) Because this loan contract exceeds $75,000, the Irrigation District <br />Law of 1905 requires the RID to hold a special election of the legal electors in the district to <br />authorize and ratify the contract. C.RS. 37-41-113(4). The election must follow the same <br />procedures that the district would follow to authorize the issuance of a bond. (See the election <br />procedure in C.RS. 37-41-117.) <br /> <br />Election - RID held an election on February 3, 2006 on the question of incurring debt. The ballot <br />question as voted on by the District members stated: "Shall the Riverside Irrigation District Board of <br />Directors be authorized to borrow up to $3,000,000 for the purchase of water rights, until July 1, <br />20061" The ballot question passed 56 - yes and 8 - no. Staff has received a copy of an opinion <br />letter from RID attorney, Mark Wagner, Hill & Robbins, P.C., stating that RID has complied with <br />statutory prerequisites for obtaining a loan. This letter was supplied to the Bank of Colorado in <br />Brush when RID obtained their "interim" financing for the water purchase. <br /> <br />Water RiQhts <br /> <br />RID has a long list of storage rights,a direct flow right and numerous recharge rights thatthey <br />control. The water for purchase is decreed as follows: <br /> <br />Riverside Reservoir <br /> <br />Decree Date <br />04f01 f1902 <br /> <br />Estimated Deliverv <br />16 AFfRight (gross) <br />8 AFfRight (consumptive) <br /> <br />The total gross delivery of the purchased rights is 736 acre-feet. All water will be used for irrigation. <br /> <br />Proiect Description <br /> <br />A range of alternatives were considered on how to acquire control of RRLC water not owned by <br />RID, including: <br /> <br />1. No-action alternative - don't actively pursue any water purchase <br />2. Pursue trade agreements with any new owners of GASP's RRLC water <br />3. Purchase the RRLC water at the GASP auction <br /> <br />Alternative 1, No-action alternative - This alternative would mean that the GASP water would sell <br />to other entities and would no longer be under the control of RID. There is no direct cost with this <br />alternative but losing control of the GASP water may lead to reduced water supply to RID farms and <br />cause dry-up of productively irrigable land. This alternative was unacceptable to RID. <br /> <br />Alternative 2, Pursue trade agreements - This alternative would give control of the GASP water <br />to RID, in the same fashion by which they have used the water for the past twenty years. There is <br />also no direct cost with this alternative. This alternative has great uncertainty not knowing who the <br />new owners of the GASP water might be and if they would even be willing to make a trade <br />agreement. This alternative was unacceptable to RID. <br /> <br />Page 3 of 5 <br />