PROJ02027

• Contract/PO #: FS0044FX
• Contractor Name: Larimer County, Board of County Commissioners
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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At the completion of the public outreach period, in June or July 2001, a public hearing will be
held before the Larimer County Board of Commissioners to consider adopting rates for the
Larimer County Dry Creek Stormwater Utility.

VII. Financial Feasibility of Recommended Institutional Alternative

The fee structure for the Larimer County Dry Creek Stormwater Utility will consist of two
components. One component, the capital fee component, will be used to pay for capital
improvements that are or will be contemplated within the basin. In addition to the Dry Creek
Flood Control Project, the capital component will be used to pay one half of the cost of minor
stormwater improvements in subdivisions and to reconstruct certain drainage facilities along
County rights of way within the Local Basin. Finally, an operations and maintenance component
will be based on the projected cost of staffing, administration, and maintaining the improvements
for the utility. It is believed that this fee structure will provide the most fair and equitable
distribution of costs among residents in the County and between residents of the City and the
County.

Projected Budget for the Dry Creek Stormwater Utility

An analysis was conducted of revenue required to support staffing, operation and maintenance of
the utility as well as the County's portion of capital improvements. Initially, the total fee revenue
to support the planned operation of the utility will be $32,000 per month or $384,000 per year.
The amount which will be initially budgeted for operation and maintenance, based on projected
staff salaries and experience with the West Vine Stormwater Utility is $37,000 per year. This
amount will pay for 0.30 of an FTE engineer for handling the administration of the utility, and
dealing with customer service issues. At the time of completion of the improvements, this
amount will be increased to pay for maintenance of the facilities. The amount which will be
budgeted for all capital improvements will initially be $347,000 per year, or $28,917 per month.
Collections of monthly payments by the utility are to be made by the East Larimer County Water
District (ELCO). The Board of Directors of the ELCO District has approved in concept the plan
for the district to act as contract billing agent. The District would not be responsible for
enforcement of collections or delinquencies.

Proposed Financing of the Dry Creek Flood Control Project

As stated earlier, the total estimated cost of improvements for the Dry Creek Flood Control Plan
is $5.4 million. Of this amount, the City and County have agreed that the costs of the project will
be divided between the two entities based on the area within the floodplain. On this basis,
Larimer County will pay 47% of the project cost, or $2.5 million and the City of Fort Collins will
pay 53%, or $2.9 million.

The facilities contemplated for construction as part of the Dry Creek Flood Control Plan do not
lend themselves to piecemeal construction. Because they form a system where each part is reliant
on each other part, they must be constructed all at once. Taking into account the source of
funding, it is apparent that money must be borrowed to enable completion of the improvements
all at once. Sources of debt financing for a stormwater utility include the private municipal bond

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