Public Works Department

2011 Ballot Measure

Purchase of water from

Animas-La Plata Project

 

On November 1^st, voters will be asked to approve $4 million in debt to allow the City of Durango to purchase water from the Animas La Plata Project.

 

Frequently Ask Questions

Related Documents

Letters to the Editor

 

 

To View Map Larger Click Here

Frequently Ask Questions:

 

Q:  What is the debt for?

A:  The City is proposing to purchase 3800 acre-feet of annual water supply from the Animas La Plata Project.  Details about the Animas La Plata Project can be found at:  http://www.usbr.gov/uc/progact/animas/.  Some of this water may be stored in Lake Nighthorse, and some will be available through direct pumping from the Animas River to the City's existing water treatment plant.

Q:  What is the current water storage capacity in the City's water system?

A:  The current active available water storage for City of Durango is 60 million gallons.  With an average daily use in peak season of 9.5 million gallons (including irrigation water), the City can currently store enough water to support the City's summer water needs for 7 days.

With the purchase of an additional 3800 acre-feet of annual water supply from the Animas La Plata project (some of which will be stored in Lake Nighthorse), the City will have an additional 700 million gallons of storage available, enough to support the City's water needs for an additional 75 days.

Q:  What is the total cost of the purchase?

A:  The total cost of a 3800-acre-foot share in water from the Animas La Plata Project is approximately $6.2 million.  The City of Durango has already paid approximately $1 million and has another $1.2 million available for payment from unexpended surplus in the City's water fund.  The remaining $4 million will need to be borrowed.

Q:  What are the terms of the debt?

A:  The City can borrow money from the Colorado Water Resources and Power Development Authority (CWRPDA), a State Agency established to promote water and power development in Colorado.  If approved, the City will be able to borrow from CWRPDA at an interest rate of 1.95% for a 20-year term. The total repayment of the debt over 20 years would be approximately $4,990,000.  Repayment of the debt would come from City water rates and charges to new developments (known as Plant Investment Fees).  General fund tax revenues cannot be used to repay the debt.

Q:  I'm a City of Durango water customer – will my rates go up?

A:  No rate increases are planned for 2012 to support repayment of the debt.  Revenues from current rates and developer fees are sufficient to repay the debt service.  Future rate increases may be necessary to support additional water system improvements.

Q:  Where can I get more information?

A:   Attend the League of Women Voters' Issues Forum on October 10^th at 6:30 p.m. at the City Council Chambers (949 E. 2^nd Avenue) – details at www.LWVLaPlata.org.

 

 

Related Documents or Links:

A Discussion of Water Supply Financial Options: - White paper presented at the 5/24/11 City Council Study Session

City of Durango Fact Sheet

Bureau of Reclamation Fact Sheets

Intergovernmental Agreement Between the City of Durango and the CWRPDA

2003 Water Supply Alternative Investigation and Preliminary Engineering Study

Water System Map (Large)

ALP Fact Sheets

ALP Financial Aspects

Durango Water Statistics

 

Letters to the Editor

The City of Durango Water Commission is a five member with one alternate group appointed by the City Council that meets monthly to review City water needs and policy and to make recommendations to the City Council regarding water matters.  Members of the Water Commission have reviewed the City's water supply system and have made a recommendation that the City Council pursue methods to secure additional water supply for the City from the Animas-La Plata Project.  The following papers and letters to the editor present information and reflect the opinions of the Water Commission members.  Those who have other opinions may submit letters for posting on the City web-page devoted to the ballot question by writing to the City Manager's Office, 949 East Second Avenue, Durango, Colorado 81301 or by e-mailing rogersoj@ci.durango.co.us

 

Alice Outwater - What If

Bill Ramaley - Durango Water Storage

Chris Wilbur - Water Storage from an Engineer's Perspective

Bob Wolff - How the ALP Will Work for the COD

Kent Ford - ALP Bond Quandry for the Citizens