Kirk Russell, Finance Section Chief Colorado Water Conservation Board

SEVERANCE TAX REVENUE

The Severance Tax Trust Fund resides in the office of the State Treasurer. The Fund is to be perpetual and held in trust as a replacement for depleted natural resources and for the development and conservation of the state’s water resources. 39-29-109 CRS.

DOLA (Energy Impact Fund)

grants and loans to local governments

Tier 1 and 2 Operational Account Programs & projects related to energy, minerals, geology & water

Perpetual Base Fund (CWCB Water Project Loans)

25% CWCB

50% DOLA

40% Oil & Gas

25% Reclamation & Mines

20% Geo Survey

5% CWCB 15% Parks

25% DNR

Tier 2 Funding Near $0

Severance Tax Volatility

$0

$10

$20

$30

$40

$50

$60

$70

$80

Showing 25% of Revenue ($Million)

Revenue ($Million)

$40M Avg

Water Project Loan Program

Project Financing

$100,000 minimum loan Current Rates (30yr)*

Agricultural 1.75% Municipal 2.45% – 3.10% Commercial 6.0% * Reduced if < 20yr

2.45% 3.10% APR

Water Project Loan Program

River Diversion

Fort Morgan Reservoir and Irrigation Company

River Diversion Rehabilitation Project

(Fort Morgan, Colorado)

Project Cost - $1,440,000

CWCB Loan - $1,308,960

6-foot tall and 100-foot Obermeyer pneumatic spillway gate system and a 5-foot tall 30-foot long bladder intake gate

Water Project Loan Program

Reservoir Enlargement

Town of Dillon Old Dillon Reservoir Enlargement Project

(Dillon, Colorado)

Project Cost - $5,673,158

CWCB Loan - $1,515,000

120,000CY excavation, 80,000CY of fill, 10,000CY riprap, 7,000 ft of 24” HDPE pipe, inverted siphon under 1-70 and new headgate

Water Project Loan Program

Hydroelectric

Tri-County Water Conservancy District

Ridgway Reservoir Micro-Hydro Project

(Montrose, Colorado)

Project Cost - $18,172,000

CWCB Loan - $13,130,000

1,700CY of concrete, interconnection switchyard, large and small turbine and generator

84,410 AF of reservoir storage

What do we do? Operations/Programs: Project Loans and Grants Conservation & Drought Planning Interstate Compact Protection Stream & Lake Protection Watershed & Flood Protection Water Supply Planning

$800 Million Avail. to invest in

Water Supply Projects

($100M Annually) $3 Billion

Needed from a new revenue

source ($100M annually)

$20 Billion Need identified in

CWP by 2050

($3B available)

CWP sets an objective to sustainably fund its implementation by investigating options to raise $100 million annually starting in 2020. ($100M/yr x 30 years = $3 Billion by 2050)

Timing is everything: Severance Tax revenues have been above average over the last 5 years; Aurora investment paid off; Water Plan completed and shows $20B in funding needs

$50M – Avail. for water supply loans in 2017/18 $40M/yr avg – Sev. Tax over the last 10 years $70M – City of Aurora, Prairie Waters Proj. - Paid in Full

3-5 Year Water Plan Funding

Colorado’s Water Plan

2017 Funding Summary $10M Basin Roundtable

(WSRF) Supplemental Funding

$5M Watershed & Stream

$10M CWP Grants/Funding

$25M Implementation

Water Plan Funding $10M (3 years = $30M)

Current Tier 2 Funding = $0

Water Supply Reserve Fund

Watershed Health

Colorado’s Water Plan sets a measurable objective to cover 80 percent of the locally prioritized lists of rivers with stream management plans, and 80 percent of critical watersheds with watershed protection plans, all by 2030.

Water Plan Funding $5M (3 years = $15M)

Water Plan Funding $10M (3 years = $30M)

• Addressing the supply/demand gap • New Storage (Surface, Aquifer, Dredging) • Implement long-term strategies for conservation,

land use, and drought planning • Engagement and Innovation • Technical assistance & grants for Agriculture • Environmental & Rec. type Projects

Water Plan Grants

MENU

$20B Water Plan Estimate

70%

15%

15% Water Providers $14 Billion

Funding Gap $3 Billion

$3 Billion State Support

The math: 80% of $17B-$19B (SWSI 2010) = $15B Plus CWP BIPs Enviro/Rec/Muni = $5B Total = $20B

Credit Rating

AA+

A

None

Loan Guarantee Fund

$300M REGIONAL

Project 2.9%

3.5% 2.9%

4.5% 2.9%

CWCB’s $30M Fund

Market Rate

Kirk Russell, P.E. Finance Section Chief

Colorado Water Conservation Board