Southeastern Colorado Water Conservancy District 2003 Annual Report

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Keview 2003 afer Alloocat*on Pol*cy 41 Each spring, the Board of Directors distributes and accepts applications from municipal and agricultural water users. This begins the process of allocating the available supplemental water from the Fryingpan- Arkansas Project. By May 1 of each year, the U.S. Bureau of Reclamation estimates the amount of water available for allocation based on estimates of spring runoff available for diversion in the Project collection system. This estimate of allocable Fry -Ark diversions is the basis for the allocation, which is finalized by the Board at their May meeting. Municipal and agricultural water users within the boundaries of the Southeastern Colorado Water Conservancy District are eligible to receive an allocation of water from the Fry -Ark Project. Fry -Ark Project water provides a supplemental source of water for irrigation and domestic use. The District's Allocation Principles allow for domestic use of Project water to take priority over irrigation usage. Fifty -one percent (51 %) of the available Project water is reserved for municipal purposes, and forty -nine percent (49 %) is reserved for irrigation purposes. Since the Project started delivering water, 2002 was the first year that the demand for Project water by municipal water users exceeded the full fifty -one percent (51 %) of the water to be allocated. 2003 was the second year that municipal demand exceeded fifty -one percent (51 %). Historically agricultural water users have been allocated more than their forty -nine percent (49 %) share because the municipal demand was less the fifty -one percent (51 %). Project water for irrigation on farms within the District is allocated on an acre -foot per eligible acre basis. In 2003, the District thought that it would help the farmers if somehow the District could have an early allocation of Project water to help them start their crops. The District asked the Fountain Valley Authority (FVA) if they could borrow some Project water that FVA was storing in Project reservoirs. The FVA agreed, and said that the District could borrow up to 8,700 acre -feet of water. The Allocation Committee decided to be conservative and borrowed 5,000 acre -feet for an early allocation. This water was allocated in April instead of May. The District paid back FVA with the first agricultural Project water imported in 2003. The District thanks the FVA for their generous cooperation. The 2003 Project water rate was $7.00 per acre -foot. This rate was charged to both agricultural and municipal water users. The U.S. Bureau of Reclamation, in consultation with the District, sets the rate for Fry -Ark Project water. The rate for Project water is reviewed by Reclamation every four years, and is subject to change based on a formal Repayment Analysis and Ability to Pay Study. Additionally, a Safety of Dams surcharge of $1.25 for agricultural entities and $2.00 for municipal entities is added to the price of the Project water. All of the revenue generated from the sale of Project water goes to Reclamation to pay for the ongoing operation and maintenance of the Project facilities. Over the last decade the District has allocated an average of 71,678 acre -feet of Project water each year. In 2003, the District allocated 35,169 acre -feet of Project water (including 165 acre -feet of Historic Allocation of Enterprise owned Project water). Fryingpan- Arkansas Project Water The District has a formal application process for those interested in purchasing Project water. The Allocation Committee based on the District's Allocation Principles and Allocation Policy reviews each application. Copies of these documents are available from the District staff and would be useful for anyone interested in purchasing Fry -Ark Project water. 1972 —2003 Agriculture 77% r-_..,._ Municipal 23% • 13 -