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<br />1850 <br /> <br />f. Financial Accounting - The water bank finances will be governed by these rules: <br /> <br />i. The water bank must pay the FLCC shareholders from whom it leases water. <br />ii. It must collect payments from the renters of water. <br />iii. It must pay ordinary operating expenses, including costs for contracted storage space <br />provided by the FLCC and the Bureau of Reclamation. <br />iv. It must build a cash reserve to assure that return flow obligations can always be met <br />by purchase of additional water, if necessary. <br />v. It must build a financial reserve so that it can survive an unusual hydrologic year. <br /> <br />7.10 Future Ootions <br /> <br />While the water bank profiled here is for 5,000 ac. ft. of FLCC water, the future options for an <br />Arkansas River Bank may be broader. <br /> <br />. The bank might accommodate more than 5,000 ac. ft. of FLCC water. The <br />constraints will be the availability of sufficiently reliable storage in AdobelHorse <br />Creek Reservoirs and Pueblo Reservoir, the availability of exchange opportunity to <br />operate as outlined above, and the willingness of FLCC shareholders to lease their <br />water. <br /> <br />. Water from other ditches might be included. Separate engineering analysis of return <br />flows and the effects on other ditch users would be necessary. The FLCC would <br />probably negotiate separate agreements for the use of its storage reservoirs by other <br />companies, and would probably charge more for a storage privilege. <br /> <br />. Water in the Arkansas Valley is sold or leased by several entities, including the <br />Southeastern District, the Cities of Pueblo and Colorado Springs, the Twin Lakes <br />Company (or its shareholders), and Pueblo West Metropolitan District. If the water <br />bank bid process works smoothly, the water bank might become an effective central <br />bid mechanism for all willing sellers and buyers of water and could save overhead <br />costs for the sellers. <br /> <br />. While more difficult to administer, some lessors might be willing to offer a contingent <br />lease so that if the water bank found it had a demand later in the season, water could <br />still be transferred. <br /> <br />. The water bank might permanently purchase some water. A permanent purchase <br />could allow the water bank to rent water on a longer term basis, and might help <br />generate "profits" which could cover operating costs, or be distributed to FLCC <br />lessors. In this instance, the water bank might become more like a "cooperative" than <br />a non-profit corporation. <br /> <br />7-45 <br />