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CeOlraICOIOra<)O\'liCO November 19-21.2003 Ager>:ta Item Ik Alternative No.2: Purchase senior water rights and construct storage to cover a 300-day period of call. This action was selecled. as it would result in existing member wells being shut off approximately two out of fifty years Approx'malely 3,000 acre-feet of gravel pil storage and 6,500 acre-feet of senior water rights wou Idbeneeded. Alternative No.3: Purchase senior water rights and construct storage to cover a 365-day period of call. This action was not selected due to the extreme cost IIwolved The drought of Ihe 1950sresulted in a call period of approximately 600 days (nearly lwo years). and woutd requ,re an expend,ture of funds ,n excess of $35 mi lIionto accumula~e the necessary augmentation water. This amounl of water (approximately 4,000 acre--feelof gravel pit storage and 12.500 acre-feel of senior waler nghts) woutd create a severe financiat burden on growers in the area, and would not be economical even during a good farm economy. Selected Alternative No.2 The Subdistrict will purchase senkJr water rights inlhe Greeley and/or Fort Morgan areas.andwollde~etOlllinedgravelpilstoragereservoirsintheGreeleyarea The cost of senior water rights around Greeley is allllroximalely $3.000fac re.footconstlmpl,ve use,wh,leinlheFLMorganarealhe1igureisapproximately$1.30O/acre-foot constlmpliveuse. (The Stlbdistrictexpects to pay an average 0/$2.500 peracre.foolf or waler rights purchased as part of this prOjecL) The cost of tined grave Ipitslorage reservoirs is approximately $2.200Iacre.footof storage, Senior and junior water r,ghlS would be ulillzed to f,lIthese slorage struclures_ The Subdistnct wotlld work w,th local irrigation companies to deliver the water rights baCll to the South Plalle River in a manner acceptable to both lhe company and the Stale Engineer, Cost estimate: Seniorwalerrights- Storagefacililies- Total 6,500 acre-feet at $2.500 per acre-fool 3.000 acre-feet at $2,200 peracre-foot- 9,500acre.feet $16.25m $ 6.60m $ 22.85 m The GMS-CCWCD has been acquiring senior water rights and bUilding slorage facilities using funds from bond financing authorized by lhe November 5, 2002 TABOR election Table 1 shows the water rights acquired in 2003 Funds from the 2002 CWCS loan becarne available in July 2003 and w,1I be used to acquire added senior water rights. to bUild addilional storage. and to refmance the Distncl'sexisting debt Thefollow.up $5,000.000 ewes loan will be used 10 acquire additional senior water rights and conslrucl new storage in 2004,and 2005. The exact additional rights that the GMS. eeWCD will purcnase are yelto be determmed. because of lhe uncertainties of aVallabililyand purchase price. Financial Analvsis The estimated cost of the total project is $22.85 millIon. Staff recommends a fOIlOw.up loan in amount of $5 mllhon. Total loans for the Ilroject will equal $20 mil!ion, or 90 percent of the totat prOject cost. The GMS-CCWCD will repay bolh loans using revenues derived from a property tax increase. The District will fund its 10% cost share from existing reserves. Table3isa stlmmaryofthe financial aspects of the total project. ,