WSP01365

• File Number: 8443.100
• Description: Narrows Unit - Project Description
• State: CO
• Basin: South Platte
• Water Division: 1
• Date: 8/1/1966
• Title: Report on the Narrows Unit Colorado South Platte Division Missouri River Basin Project part 2
• Water Supply Pro - Doc Type: Report/Study

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180':'

Economic and Financial Analyses

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Assessed value

1960
1961
1962
1963
1964
1965

$67,990,000
67,086,000
66,009,000
67,735,000
65,999,000
68,553,000

The 1965 figure reflects a reversal of the reported decline in
values in recent years which was due mainly to substantial decreases
in the value of petroleum reserves, especially in Morgan County,
which more than offset nominal gains in other agricul tural areas and
in urban centers. The declining value for the generally depleted
oil reserves probably has run its course so that some gains in the
assessed value of the Lower South Platte Water Conservancy District
may be anticipated in the future. For purposes of repayment analysis
the future assessed valuation when Narrows Unit begins operation is
estimated at $70,000,000.

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Under Colorado law, the conservancy district may levy an ad
valorem tax of one mill annually when construction of the Narrows
Unit is completed and supplemental irrigation water becomes available
from the Narrows Reservoir. Est~ted annual revenue of $70,000 from
the one mill levy will first be used to defray administrative expenses
of the district. These administrative expenses include costs of
maintaining office headquarters, salaries, payments for travel and
service by members of the board of directors as prescribed by state
law, and other necessary expenses. The total annual district expense
has been estimated at $43,000, or about 61 percent of the total
proceeds from the mill levy. The remaining annual proceeds of $27,000,
or about 39 percent, would be applicable to the payment of allocated
irrigation costs of the Narrows Unit.

Since the taxing powers of the Lower South Platte Water
Conservancy District are limited, the expected net revenues from
the levy on its assessed valuation will aid in amortizing the allocated
irrigation costs only to a relatively small extent. Consequently, the
major portion of the payments by the district to the Government must
be obtained from the water users.

Contracts with individual water users, irrigation companies, and
municipalities have been used in underwriting the costs of supplemental
water from the Colorado-Big Thompson Project and they provide the
basis for annual assessment of C-BT Project charges by the Northern

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