C150254 Approval Letter

• Contract/PO #: C150254
• Contractor Name: Hillrose, Town of
• Contract Type: Loan
• Water District: 0
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us
M E M O R A N D U M Bill Ritter, Jr.
(UpdBted July 17, 2007) Governor
Harris D. Sherman
TO: Colorado Water Conservation Board Members Executive Director
~ '~ J ` Dan McAulliffe
FROM: Bruce Johnson, P.E. ~ r a~~gcwcB
Director
Mike Serlet, P.E., Chief ./'
Water Supply Planning and Finance Section
DATE: July 2, 2007
SUBJECT: Agenda Item 15d, July 11-12, 2007 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Town of Hillrose - Water Rights Purchase/Well Augmentation
Introduction
The Town of Hillrose, acting by and through its Water Activity Enterprise Fund {Town), is applying for a
$49,500 loan from the Severance Tax Trust Fund Perpetual Base Account, to finance the purchase of
surface water rights, 6 shares of Lower Platte & Beaver Canal Company (LP & B), to use for well
augmentation for its proposed secondary water system. The estimated total cost of the project is
$55,000. Please see the attached project summary and map.
Backqround
The Town is located approximately 15 miles east of Fort Morgan along State Highway 6. The
current population is about 270 residents and the Town currently serves 132 water taps, with
the potential to serve 9 additional taps if existing annexed lots are developed. Typical water
usage averages about 40 AF per year, but in dry years like 2003, the total usage is 26 AF, with
water restrictions imposed. The current base monthly water user fee for the Town is $30 per
month, plus debt surcharges for loan payments totaling $25.40. Currently, tap fees vary
between $1000 and $1500, depending on the area of town, and the Town averages 1-2 taps per
year. In average years outside watering is about 70% of the Town's total water usage.
The Town currently has one tributary groundwater well (Permit # 018543-F) to supply all of the
water required for the town. The well is augmented under the LP&B plan of operations. This
well and the existing distribution system will be converted to a secondary water system for
outdoor irrigation, as the Town is in the process of connecting to Morgan County Quality Water
District (MCQWD) for domestic water service, in order to address water quality problems posed
by elevated levels of uranium, sulfate, alkalinity and total dissolved solids.
The Town, with the assistance of a$995,097 Drinking Water Revolving Fund (DWRF) loan from
the Colorado Water Resources and Power Development Authority (CWRPDA), a$466,000
Flood Protection • Water Supply Planning and Finance • Stream and Lake Protection
Water Supply Protection • Conservation and Drought Planning