Arkansas - LAVWCD - Super Ditc_Application_July2008

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Alternative Agricultural Water Transfer Meth©ds -Grant Application Farm January 26118 Arkansas Valley. The District has been active in four primary program areas since its formation: 1. Development of alternatives to the permanent dry-up and transfer of irrigation water rights for use outside the Lower Valley; 2. Education and research to promote improved financial returns from irrigated agriculture; 3. Preservation of irrigated agriculture through conservation easements and as purchaser-of-last-resort of irrigated farms and ranches in the Lower Valley; 4. Purchase of strategic water rights for use in the Lower Valley, such as augmentation water; and 5. Lease of water for augmentation use in the Lower Valley and to repay Colorado's water debt to Kansas. The District is the recognized leader in Colorado in developing a fallowing-leasing program to meet the water needs of Front Range municipalities while preserving irrigated agriculture and the economic future of rural Colorado. This work began in 2003 and has grown over time, as described in more detail below. The District was also a leader in the use of conservation easements to preserve working farms and ranches. Moreover, the District has been the leader in Southeast Colorado and a primary leader statewide in efforts to prevent and correct abuses of the conservation easement tax credit program, and to reform the program for the long-term benefit of irrigated agriculture. e) Please include any relevant ~"abor issues relating to the funding request that tnay affect the Contracting Entity. The Lower Ark District's 1.5 mill property tax levy is exempt from TABOR pursuant to the election that formed the District in 2002. The District formed a Water Activity Enterprise in 2003 to manage the District's water assets and provide services to the District on a reimbursable basis. The Lower Arkansas Valley Water Enterprise Fund would be the contracting entity for this project. 4