municipal subdistrict 2020 annual budget...municipal subdistrict, northern colorado water...

Northern Colorado Water Conservancy DistrictMunicipal Subdistrict

Municipal Subdistrict2020 Annual Budget

B

Municipal Subdistrict, Northern Colorado Water Conservancy District

Table of Contents

Introduction from the General Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Our Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Service Area and Windy Gap Project Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Distinguished Budget Presentation Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Community Profile of the Eight Largest Windy Gap Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Largest Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Population and Jobs Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Budget Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Fiscal Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Subdistrict Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Budget Appropriations - All Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Windy Gap Water Activity Enterprise Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Windy Gap Firming Project Water Activity Enterprise Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Acronyms A - G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Acronyms H - Z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Appropriation Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

1

Transmittal Letter

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictIntroduction from the General Manager

To the President and Board of Directors,

We are pleased to present a fiscally sound operating and capital budget for fiscal year 2020 . The spending plan is just one part of a long-term commitment to provide quality services while preserving long-term financial viability of the Municipal Subdistrict . This budget is designed to fulfill the Subdistrict’s mission: “To provide water resources management, project operations and water conservation services for our project beneficiaries .”

After receiving the final federal permit needed for the Windy Gap Firming Project in fiscal year 2017, the focus for fiscal year 2020 remains to advance the project so construction of the Chimney Hollow Reservoir may begin . This project is needed to meet a portion of the existing and future wholesale water supply demands within the boundaries of the Subdistrict . This project aligns with the Subdistrict’s vision to ensure a secure water future for Northern Colorado . Planning, design and funding of the Colorado River Connectivity Channel will continue during fiscal year 2020 . Other activities and programs for the Windy Gap Project will be consistent with the past .

Fiscal Year 2020 Budget Summary and Highlights

Windy Gap Water Activity Enterprise Fund

Total Sources of Funds are estimated to be $8 .5 million, $2 .6 million or approximately 44 percent higher than fiscal year 2019 due to increased Colorado River Connectivity Channel revenues and carriage revenue reflecting implementation of the 2014 Carriage Agreement in 2020 for unused capacity at $34 .00/AF • Operating revenues totaling $6.1 million • No change in assessment deferral charge - $36 per acre-foot • Other revenues totaling $0.6 million • Contributions totaling $1.9 million for the Colorado River Connectivity Channel

Operating expenses of $6 .2 million reflect an increase of $1 .0 million or approximately 19 percent higher than fiscal year 2019 primarily due to an increase in carriage costs • Largest expense is carriage costs amounting to $3.4 million reflecting implementation of the new Carriage Agreement • Programs totaling $1.3 million

Capital Project expenditures of $2 .2 million are planned primarily for the Colorado River Connectivity Channel and the Windy Willow flow meter

Windy Gap Firming Project Water Activity Enterprise Fund

Total Sources of Funds are estimated to be $563 .6 million, $41 .9 million more than fiscal year 2019, as anticipated funding for project construction is now expected in fiscal year 2020 instead of fiscal year 2019

Capital Project expenditures of $74 .2 million are planned for design, mitigation and enhancements and construction for the Chimney Hollow Reservoir

We believe the budget for the Subdistrict’s 50th year of operation meets the Board’s conservative fiscal management and management’s commitment to accountability and strong fiscal management .

Respectfully,

/s/ Bradley D. Wind

Bradley D . WindGeneral Manager

2

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictOur Business Plan

Our Mission

Provide water resources management, project operations and conservation services for project beneficiaries .

Our Values and Principles

• Collaborative, proactive and progressive leadership• Water resources conservation• Environmental stewardship• Personal and corporate ethical integrity and professionalism• Solution-oriented service• Regional cooperation

Our Vision

The Subdistrict will be a leader in insuring a secure water future for northern Colorado .

Our Priorities

• Collect and deliver water• Protect and conserve water supplies• Plan and implement new water supply projects• Cultivate operational and organizational excellence• Maintain and strengthen relationships

Financial Plan - Revenue

Program Objectives

Routine Responsibilities

Annual Budget

Long-Term Board Priorities

Strategic Initiatives

Major Projects

Our Planning Road Map

3

The Subdistrict was organized as a subdistrict of Northern Colorado Water Conservancy District (Northern Water) by decree of the District Court of Weld County, Colorado, on July 6, 1970, pursuant to the Water Conservancy Act . Under the Water Conservancy Act, a subdistrict thus formed is a separate and independent conservancy district with the same powers and legal standing as its parent district and is an independent political subdivision of the State of Colorado . The Subdistrict has the authority to undertake projects separate from those undertaken by Northern Water . The Subdistrict has an agreement with Northern Water whereby Northern Water provides all administrative, operation and maintenance functions for the Subdistrict, and is reimbursed by the Subdistrict for the services rendered .

The Board of the Subdistrict is, by statute, the same as the Board of Northern Water . It has been the practice of the Subdistrict to elect a different slate of officers from those chosen by Northern Water . The staff of Northern Water serves as the staff of the Subdistrict, with the Subdistrict reimbursing Northern Water for the actual time of such staff plus an additional percentage to cover costs and overhead . Northern Water does not approve or modify the Subdistrict’s budget, hold title to any of the Subdistrict’s water rights, authorize issuance of Subdistrict’s bonds or appoint the Subdistrict’s Board or management . Therefore, the Subdistrict is not under control of Northern Water and is not included in Northern Water’s financial reports . The Subdistrict’s fiscal year end is September 30 .

The Windy Gap Project

The Windy Gap Project is located just west of the Town of Granby on Colorado’s Western Slope . It consists of a diversion dam on the Colorado River that creates the 445 acre-foot Windy Gap Reservoir, a pumping plant, and a six mile pipeline to Lake Granby . This system is capable of delivering an average of 48,000 acre-feet of water annually, diverted primarily during the spring runoff season between April and July . During these periods of high flows in the Colorado and Fraser rivers, water is pumped from Windy Gap Reservoir to Lake Granby, where it is stored for delivery through the Colorado-Big Thompson Project (C-BT Project) facilities to water users on the Front Range .

Water Allotment Contracts

The Subdistrict has entered into water allotment contracts with each of the initial participants and participating transferees . Allotment contracts provide that participants annually receive their proportional share of Windy Gap water . Every unit equals 100 acre-feet of water, or 1/480 of the annual average yield produced . Each water allotment contract requires participants to make annual payments equal to the corresponding share of the costs related to the Subdistrict’s acquisition of water rights and operation, maintenance and replacement of Windy Gap Project features, as well as carriage charges to Northern Water and U .S . Bureau of Reclamation (Reclamation) for using the C-BT Project for storing and delivering Windy Gap water .

A benefit to Subdistrict allottees is that allotment contract holders are granted total consumptive use of their Windy Gap water . Allottees can use and reuse Windy Gap water because it is imported water not native to the South Platte Basin . After first use within Subdistrict boundaries, participants may lease, transfer or sell the reuse or successive use rights for use within or outside Subdistrict boundaries .

Carriage Contract

The Subdistrict has a Carriage Contract with Reclamation and Northern Water specifying how Windy Gap water will be stored and carried to the East Slope through the C-BT Project using the unused capacity of the existing C-BT Project’s storage and conveyance facilities . Windy Gap’s largest annual operating expense is carriage charges, which is over 65 percent of the operating budget or $2 .6 million .

In-lieu Deliveries

In abnormally dry years, no water may be legally available because other water users in the Colorado River hold water rights similar in priority to Subdistrict’s water rights . In abnormally wet years, storage space may not be available in Lake Granby . Pursuant to the Carriage Contract, the Subdistrict’s Integrated Operations Criterion, C-BT system water may be delivered by the Subdistrict in-lieu of Subdistrict water during times when water would not otherwise be available . In-lieu deliveries are subject to requirements, including replacement water to assure C-BT system beneficiaries are not injured as the result of in-lieu deliveries . The in-lieu service charge is $5 .70 per acre-foot .

Longmont Mayor Ralph Price files for water rights

How the Windy Gap project came to be

WINDY GAP TIMELINE

Six CitiesCommittee formally created

MunicipalSubdistrict formed

Reclamation approves project and ground breaking ceremony

Windy Gap Projectdedicated and water deliveriesbegin

Establishment of the Windy Gap Firming ProjectWater Enterprise

Windy Gap Firming Project receives finalfederal permit

JULY 17 FEBRUARY 24 JULY 6 APRIL/NOVEMBER JUNE 29 NOVEMBER May 1967 1969 1970 1981 1985 1999 2017

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictGeneral

4

Six Cities

Formal efforts to develop and construct the Windy Gap Project began in the summer of 1967 when Longmont Mayor Ralph Price filed for water rights on the Colorado River near Granby . Price was acting as trustee for a coalition of six Northern Colorado cities: Boulder, Estes Park, Fort Collins, Greeley, Longmont and Loveland .

A Geologic Cut Called Windy Gap

The Windy Gap Project they jointly pursued is located on the West Slope near a natural geologic cut called Windy Gap, just below the confluence of the Colorado and Fraser rivers . The cities envisioned Windy Gap as a water source to meet the future needs of the rapidly growing Northern Front Range .

After studying growth rates and water supply demand projections, the six cities chose to pursue the Windy Gap Project to meet their future municipal needs .

Municipal Subdistrict Formed

In 1969, the participants realized that the work and expertise needed to build the Windy Gap Project required a stronger organization than they could provide independently . The Subdistrict was formally established on July 6, 1970, with the same powers and legal standing as the parent Northern Water .

Following completion and approval of an Environmental Impact Statement and acquisition of 23 permits and licenses, Windy Gap Project construction began in July 1981 . The Windy Gap Project was completed in 1985 and began delivering water to Subdistrict allottees in July .

Today, the Windy Gap Project consists of a diversion dam on the Colorado River that creates the 445 acre-foot Windy Gap Reservoir, a pumping plant and a six mile pipeline to Lake Granby .

Windy Gap Project Mitigation

The Subdistrict is required by the Water Conservancy Act to design, construct and operate the Windy Gap Project in a manner that will not impair the Colorado River Basin or increase costs to its water users . To satisfy this requirement, the Subdistrict provided mitigation measures and additional benefits to the West Slope . These included:

• $10 .2 million payment to the Colorado River Water Conservation District used as seed money to construct Wolford Mountain Reservoir• $550,000 to the U .S . Fish and Wildlife Service for endangered fish species studies• $500,000 to upgrade and provide new pumps for rancher diversions downstream• $420,000 to Hot Sulphur Springs for upgrading water and wastewater treatment facilities

Windy Gap Firming Project

The Windy Gap Firming Project is being implemented to provide more reliable Windy Gap water deliveries . The Windy Gap Firming Project would include a 90,000 acre-foot reservoir at Chimney Hollow in the foothills west of Carter Lake . Not all of the owners of the Windy Gap Project are participating in the Windy Gap Firming Project . The City of Boulder and the Town of Estes Park own Subdistrict water units but are not participating in the Windy Gap Firming Project because they have other storage for Subdistrict water or other water supplies that currently meet their needs . The final federal permit needed to construct the Chimney Hollow Reservoir was signed on May 17, 2017 .

Windy Gap Pump Plant construction in the early 1980’s. Snow covers a section of Windy Gap’s pipeline, which was trucked over the Continental Divide in sections.

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictHistory

5

Participants Water Units PercentagePlatte River Power Authority 134 27.9%Longmont 80 16.7%Broomfield 56 11.7%Greeley 49 10.2%Loveland 40 8.3%Boulder 37 7.7%Erie 20 4.2%Little Thompson Water District 17 3.5%Superior Metro District No. 1 15 3.1%Fort Lupton 13 2.7%Louisville 9 1.9%Lafayette 3 0.6%Estes Park 3 0.6%Berthoud 3 0.6%Central Weld County Water District 1 0.2%

Windy Gap Participants

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictService Area and Windy Gap Project Participants

Rawhide Power Plant(Platte River Power Authority)

Fort Collins

Greeley

Longmont

Fort Lupton

Denver

BoulderWindy Gap

Broomfield

Loveland

Central Weld CountyWater District

Left HandWater District

Estes Park

Erie

Superior Metropolitan District No. 1

Subdistrict Service AreaC-BT Project Facilities

LouisvilleLafayette

South Platte River

Little ThompsonWater District

Berthoud

6

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictDistinguished Budget Presentation Award

7

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictCommunity Profile of the Eight Largest Windy Gap Participants

Eight Largest Windy Gap Project Participants

City of Boulder

Established 1871Estimated Population for 2017 106,974Unemployment rate 3 .0%Per Capita Income for 2017 $68,027Land Area (square miles) 26Most Populous City in Colorado 9th

City of Longmont

Established 1871Estimated Population for 2017 94,191Unemployment Rate 2 .6%Per Capita Income for 2017 $63,707Land Area (square miles) 22Most Populous City in Colorado 11th

10,000 30,000 50,000 70,000 90,000

110,000

2008 09 10 11 12 13 14 15 16 17

Population TrendSix Largest Windy Gap Project Participants

Municipalities

City of Boulder City of Longmont City & County of Broomfield City of Greeley City of Loveland Town of Erie

Source - Colorado Department of Local Affairs, State Demography Office, City website, Bureau of Labor Statistics, US Census - extrapolated from 2018 by US Census, City CAFRs.

The Subdistrict has experienced a moderately growing population and service area in the past ten years .

• Colorado is the 7th fastest growing state at +1 .4% from 2017 to 2028, with Northern Colorado driving much of that

• The City of Broomfield has seen an increase of 22 .28% since 2010

• The Town of Erie (located in Weld and Boulder counties) has seen an increase of 33 .63% since 2010

8

City and County of Broomfield

Established 2001Estimated Population for 2017 68,169Unemployment Rate 2 .5%Per Capita Income for 2016 $73,129Land Area (square miles) 33 .6Most Populous City in Colorado 13th

City of Greeley

Established 1870Estimated Population for 2017 104,947Unemployment Rate 2 .8%Per Capita Income for 2017 $44,080Land Area (square miles) 30Most Populous City in Colorado 10th

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictCommunity Profile of Windy Gap Participants

Eight Largest Windy Gap Project Participants (continued)

2.0%5.0%8.0%

11.0%

2008 09 10 11 12 13 14 15 16 17

Unemployment RateSix Largest Windy Gap Project Participants

Municipalities



The Subdistrict’s service area is expected to remain strong as the Northern Colorado economy continues to experience solid job growth .

• The City of Boulder is the fastest growing employment location in Colorado

9



City of Loveland

Established 1881Estimated Population for 2017 76,797Unemployment Rate 2 .5%Per Capita Income for 2017 $47,117Land Area (square miles) 35 .5Most Populous City in Colorado 12th

Town of Erie

Established 1874Estimated Population for 2017 23,940Unemployment rate 2 .5%Per Capita Income for 2017 $68,027Land Area (square miles) 19 .8Most Populous City in Colorado 24th

$20,000

$40,000

$60,000

$80,000

2008 09 10 11 12 13 14 15 16 17*

Per Capita IncomeSix Largest Windy Gap Project Participants

Municipalities


*Per Broomfield 2018 Comprehensive Annual Financial Report,2017 Per Capita Personal Income not available


The income growth of the six largest municipal participants continues to be solid .

10


Source - Municipalities’ websites and most recent CAFR’s and Budget Reports

Platte River Power Authority

Established 1975

Colorado political subdivision established to provide wholesale generation and transmission to municipal utilities of its owner communities - Estes Park, Fort Collins, Longmont and Loveland .

Little Thompson Water District

Established 1960

Colorado special district established to provide high-quality drinking water to rural residents in a 300-square mile service area in Larimer, Weld and Boulder counties .


11

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictLargest Employers

Largest Employers by County: 2019 - 2020 (Private Non-Retail)

Rank

123456789

10

Larimer CountyEmployer

UC Health: Poudre Valley HospitalBroadcom, Inc .Woodward, Inc .Banner Health: McKee Medical CenterHewlett PackardQualfonHach CompanyTolmar, Inc .Otter ProductsAnheuser-Busch Fort Collins Brewery Sum of largest employers Full labor force June, 2019

Employment

7,760 1,690 1,600 1,410 1,250 870 860 690 680 650 17,460 202,450

Rank

12

3456789

10

Weld CountyEmployer

JBS USABanner Health: North Colorado Medical Center (NCMC)VestasState Farm Insurance CompaniesHalliburton Energy Services, Inc .UCHealthTTECAnadarko PetroleumLeprino FoodsNoble Energy Sum of largest employers Full labor force June, 2019

Employment

4,590

3,640 2,810 1,200 1,030 1,030 620 580 510 500 16,510 165,289

Rank

12345678

910

Boulder CountyEmployer

Medtronic PLCBoulder Community HealthBall Aerospace & Technologies Corp .IBM CorporationSeagate TechnologyGood Samaritan Medical CenterGoogleCentura Health: Longmont United & Avista Adventist HospitalsSierra Nevada CorporationKaiser Permanente Sum of largest employers Full labor force June, 2019

Employment

2,470 2,440 1,680 1,670 1,440 1,430 1,300

1,280 750 750 15,210 193,822

Rank

123456789

10

Broomfield City and CountyEmployer

CenturyLinkOracleSCL Health Revenue Service CenterHunter Douglas Window FashionsVail ResortsBall CorporationTSYSDanone North AmericaBroadcom, Inc .VMware Sum of largest employers Full labor force June, 2019

Employment

2,220 1,800 1,200 980 740 610 580 570 500 500 9,700 39,816

Source of largest employers: Development Research Partners/Metro Denver EDC, June, 2019Source of full labor force data: Colorado Department of Labor and Employment, Labor Market Information

Largest Employers Combined: Larimer, Weld, Boulder, Broomfield Counties 2019 - 2020 (Private Non-Retail)

Top Ten Employers - Combined

Employment

8,790 5,050 4,590 2,810 2,470 2,440 2,220 1,800 1,690

1,680 33,540 601,377

County

Larimer/Weld Larimer/Weld Weld Weld Boulder Boulder Broomfield Broomfield Larimer/ Broomfield

Boulder

Employer

UCHealth: Poudre Valley HospitalBanner Health: NCMCJBS USAVestasMedtronic PLCBoulder Community HealthCenturyLinkOracleBroadcom, Inc .

Ball Aerospace & Technologies Corporation Sum of largest employers Full labor force 2019

Rank

123456789

10

14,320

6,590

4,865

7,765

Weld Boulder Broomfield Larimer

12

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictPopulation and Jobs Trends

Larimer County

Year

20102015202020252030

Total Jobs

165,485 185,436 208,071 230,158 247,478

Population

300,543 326,803 356,900 388,866 418,814

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2015 2020 2025 2030

Larimer CountyForecast Change in Population & Jobs 2015 - 2030

Source: State of Colorado Demography Office

Job Change Population Change

Weld County

Year

20102015202020252030

Total Jobs

104,463 132,084 155,574 174,333 192,823

Population

254,240 286,575 340,265 401,865 466,716

Denver Metro Including Boulder and Broomfield Counties

Year

20102015202020252030

Total Jobs

1,641,311 1,886,272 2,123,138 2,302,714 2,423,855

Population

2,797,873 3,053,801 3,306,177 3,540,403 3,758,347

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2015 2020 2025 2030

Weld CountyForecast Change in Population & Jobs 2015 - 2030



0

50,000

100,000

150,000

200,000

250,000

300,000

2015 2020 2025 2030

Denver Metro Including Boulder and Broomfield CountiesForecast Change in Population & Jobs 2015 - 2030



13

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictBoard of Directors

The 12-member Board is responsible for establishing policy and strategic direction . Directors from the eight counties within Northern Water boundaries are appointed to 4-year terms by District Court judges . Three Board seats are up for appointment every year . When a Director’s term expires, he or she continues to serve until the judge reappoints or replaces him or her . Subdistrict’s Board Officers are elected by the Board at its annual organizational meeting each October . The Board holds its public meetings twice a month . Directors are paid $100 per meeting to a maximum of $2,400 per year .

Past Presidents

William D . Farr Ray Joyce Les Williams

1970 - 1995 25 years1995 - 2000 5 years2000 - 2013 13 years

Current Board of Directors

Dennis YanchunasPresidentBoulder CountyAugust 20, 2010 - Sept . 28, 2020

Jennifer GimbelLarimer CountyJuly 15, 2019 - Sept . 28, 2020

Mike ApplegateLarimer CountySept . 28, 1991 - Sept . 28, 2019

Bill EmslieVice PresidentLarimer CountySept . 28, 2005 - Sept . 28, 2021

Rob McClarySedgwick CountySept . 28, 2011 - Sept . 28, 2019

John RuschMorgan and Washington CountiesMay 10, 2002 - Sept . 28, 2021

Dale TrowbridgeWeld CountyAugust 15, 2014 - Sept . 28, 2019

Todd WilliamsBoulder CountySept . 28, 2017 - Sept . 28, 2021

Gene ManuelloLogan CountySept . 28, 2018 - Sept . 28, 2022

Don MagnusonWeld CountySept . 28, 2004 - Sept . 28, 2020

Sue Ellen HarrisonBoulder CountySept . 28, 2009 - Sept . 28, 2022

David NettlesWeld CountyOctober 18, 2018 - Sept . 28, 2022

14

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictBudget Process

The budget process provides an opportunity to align short-term objectives and actions at the program level to the Subdistrict’s long-term mission and values . The Board, General Manager, Directors and staff participate in the development of the budget .

The proposed budget for the upcoming year is presented to the Board for consideration and adoption in August of each year in order to align it with the adoption of water assessments which are also approved . The Board, at its regular meeting of May 9, 2019, appointed Bradley D . Wind, Jerry Gibbens, Karen Rademacher, Mary Krakow and John Budde as Budget Officers and directed them to prepare and submit the requisite budgets of the Subdistrict for fiscal year 2020 . A notice is published, as required by law, in all the counties located wholly or partly within the Subdistrict boundaries stating the annual budget is available for inspection by the public, including the date and time for public hearing . This year’s budget review process included a workshop with the participants on July 9 and a Board workshop on July 17 .

The 2019 budget was prepared utilizing the accrual method of accounting . This is the same basis of accounting used for the Subdistrict’s audited financial statements .

Budget ScheduleTask Jan Feb Mar Apr May June July Aug Sept

Formulate key goals and objectives

Identify major budget assumption

Budget instructions issued to all department managers

Review and final recommendations of budget by senior managers

Appointment of budget officers and prepare budget reports

Deliver budget to the Board

Hold public hearing and adopt budget by the Board

File budget with the state

Amending the Budget

Senior Management is authorized to add or revise budget amounts between operating expenses and projects . Any revisions that exceed the total appropriation for the fund, must be approved by the Subdistrict Board . All contracts over $35,000, whether budgeted or unbudgeted, must be authorized by the Subdistrict Board . Purchase of capital assets over $35,000, whether budgeted or unbudgeted must be authorized by the General Manager .

First Subdistrict Budget Resolution adopted in 1970

WHEREAS, the Municipal Subdistrict, Northern Colorado Water Conservancy District, was created on July 6, 1970, in the District Court Sitting in and for Weld County and is a political subdivision of the State of Colorado and a body corporate with all the powers of a public or municipal corporation; and

WHEREAS, E. F. Phipps, Secretary of Municipal Subdistrict,

Northern Colorado Water Conservancy District, and J. c. Nelson, Treasurer of said Subdistrict, were appointed by the Board of Directors to prepare the Budget for the fiscal year commencing November 1, 1970, and have submitted the same to the said Board and caused to be published the requisite Notice of Hearing.

NOW, THEREFORE, BE IT RESOLVED, that the Board of

Directors of the Municipal Subdistrict, Northern Colorado Water Conservancy District, hereby approves and adopts the Budget as submitted by the duly appointed Budget Officers and appropriates the aggregate sum of $33,925.00 for the purpose of paying the cost of all con-tractual obligations; meeting the expenses required to conserve,allocate, and control the water supplies of the Subdistrict includingthe expense of design, construction, administration, operation and maintenance of all works, facilities, properties, and functions necessary for the distribution and beneficial utilization of those water supplies; and the expenses for the transaction of all such other business functions and activities found by said Board to be necessary and convenient; and

BE IT FURTHER RESOLVED, that any revenue in excess of the sums appropriated_in this or any further appropriations for unforeseen contingencies shall be transferred to and deposited in the reserve account of said Subdistrict; and

BE IT FURTHER RESOLVED, that the funds r quired for the sums

so appropriated shall be provided in the manner and by the means adopted by the Board of Directors, Municipal Subdistrict, Northern Colorado Water Conservancy District.

The motion was seconded by Director Nix and upon being put to vote was unanimously adopted.

The Treasurer presented the Financial Statement for the month of August and explained that the budget officers had now been bonded; that funds had been deposited to the Subdistrict account in Westlake National Bank as shown on the Financial Statement; and that payment of the bills shown on the statement could now be made. Thereupon, Director Moffitt moved that the bills be allowed and checks and vouchers be drawn in payment thereof. The motion was seconded by Director Moore and upon being put to vote unanimously carried.

The bills approved for payment will be found in the financial records of

the Subdistrict on the Financial Statement dated August 31, 1970.

There being no further business to come before the Board, Director Moffitt moved adjournment to October 9, 1970.

Secretary

15

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictFiscal Policies

Balanced Budget

The Subdistrict has not adopted a fiscal policy on a balanced budget . Subdistrict considers the budget to be balanced when the sources of funds equals the uses of funds . On occasion, the planned use of reserves, along with budgeted operating revenues are equal to or greater than budgeted expenditures .

Reserves

The Windy Gap Water Activity Enterprise Fund (Windy Gap) accumulates reserves sufficient to pay operation, maintenance, pumping energy, capital additions and working capital . These reserves may be drawn upon if unusual or unplanned events occur, or they may not be used at all . In the future, the Board will be reviewing and updating the types and amounts of the reserves .

The Windy Gap Fund practice is to maintain reserves that are sufficient to provide:

• 150 percent of expected operation and maintenance expenses• 100 percent of the energy costs to pump 35,000 acre-feet of water• Minimum of 360 unrestricted days cash on hand

Revenues

The Windy Gap Fund is fully funded through assessments for wholesale water provided by the Windy Gap Project .

Expenditures

The Subdistrict continues to find new ways to operate more efficiently while setting high standards in maintaining its facilities .

Risk Management

The Subdistrict is exposed to various risks of loss related to torts, (Colorado Governmental Immunity Act limits general liability to $387,000 per person and $1,093,000 per occurrence) theft of, damage to and destruction of assets; errors and omissions; and natural disasters . The Subdistrict carries commercial insurance for these risks . Settled claims resulting from these risks did not exceed commercial insurance coverage in any of the past three years .

Investments

The Board established an Investment Policy Statement (IPS) for funds not used to meet current liquidity requirements . The purpose of the IPS is to establish the investment restriction standards, investment objectives, delegation of authority, prudence, ethics and conflicts of interest, authorized securities and transactions, portfolio maturities and liquidity, safekeeping and custody, portfolio performance and reporting . The investment objectives in order of priority are safety, liquidity, return and diversification .

Capital Policy

Assets that have a service life of more than one year and have an initial cost of $5,000 or more are capitalized . Assets not meeting this criteria are expensed . Depreciation is computed using the straight-line method over the estimated useful life .

Basis Accounting

The Subdistrict financial statements are prepared using the accrual basis of accounting with the economic resources measurement focus as prescribed by the Governmental Accounting Standard Board (GASB) . Under this approach, all assets, deferred outflow of resources, liabilities and deferred inflow of resources are reported in the Statement of Net Position . Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred .

Capital Contributions

Capital contributions consist of payments from participants for the funding of the Windy Gap Firming Project . Also, payments received for the Colorado River Connectivity Channel (Connectivity Channel) are accounted for as contributions . In the Statement of Revenues, Expenses and Changes in Net Position, capital contributions are recognized after nonoperating revenues (expenses) .

16

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictSubdistrict Organizational Chart

Board Committees• Audit• Finance and Bene�ts• Legal and Legislative

General Public of the Subdistrict

Service Area

12-MemberBoard of Directors

Legal CounselWindy Gap and Windy Gap Firming Project ParticipantsCommittee

The Subdistrict has no full-timeemployees. All administrative, engineering and operations and maintenance functions are provided through an agreement with Northern Water.

Signi�cant program expensesinclude:Senior Management (page 27)Water Quality (page 28)Financial Services (page 30)Communications (page 31)Water Resources (page 32)Information Technology (page 33)Contracts (page 35)

17

The Subdistrict is comprised of three enterprise funds that use activities of the organization to track financial performance and budgetary oversight of its business-like operations . The two major enterprise funds, Windy Gap Water Activity and Windy Gap Firming Project Water Activity, account for the wholesale water operations of the Subdistrict . The other fund, Municipal Subdistrict District Fund, is the owner of the two water activity enterprise funds . For financial reporting purposes, the Municipal Subdistrict District Fund is included in the Windy Gap Water Activity Enterprise Fund statements . The two water activity enterprise funds are legally distinct and financially independent funds . Both have been established in accordance with Colorado Statutes, as “enterprises” and are excluded from the application of Article X, Section 20, of the Colorado Constitution .

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictBudget Appropriations - All Funds

Fiscal Year 2020Total Funds

$83,056,911

Municipal SubdistrictDistrict Fund

$100,050

Windy Gap Water ActivityEnterprise Fund

$8,746,861

Windy Gap Firming ProjectWater Activity Enterprise Fund

$74,210,000

Budget Appropriations by Fund

5%

94%

1%

Windy Gap Fund

Windy Gap Firming Fund

Municipal Subdistrict District Fund

18

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictAdopted BudgetFiscal Year 2020

Windy Gap Water Activity Enterprise Fund

Windy Gap is self-supporting through water assessments . The purpose of Windy Gap is to account for the wholesale water activities of the Windy Gap Project which provides water supplies to northern Colorado municipalities, rural domestic suppliers and industry . The Windy Gap Project consists of a diversion dam on the Colorado River, a pump station and a pipeline to pump and transport diverted Windy Gap Project water to the C-BT Project for storage and distribution to the fifteen participants . Construction of the $81 .7 million Windy Gap Project commenced in July 1981 with operation commencing in July 1985 . The fiscal year 2020 operating and capital budget totals $8,746,861 . This represents an increase of $2,324,137 or 36 percent from the fiscal year 2019 budget . The increase is primarily due to increased costs related to the Connectivity Channel . Total revenues of $8,512,100 represents an increase of $2,621,355 from the 2019 budget . The increase was related to the higher contributions for the Connectivity Channel as well as estimated higher earnings in investments .

Beginning Cash and Reserves

$20,406,031

Sources ofFunds

$8,512,100

Uses ofFunds

$8,746,861

Ending Cash andReserves

$20,171,270

Fiscal Year 2020 Budget

Windy Gap Reservoir, Grand County, Colorado

19


Windy Gap Water Activity Enterprise Fund Overview (continued)

Comparison of Sources and Uses by Fiscal Year

Beginning Cash and Reserves Restricted

Total

SOURCES OF FUNDS Revenue Sources Operating Revenues Water Assessments Total operating revenues

Other Revenues Earnings on Investments Other Nonoperating Revenue Total other revenues

Contributions Colorado River Connectivity Channel Total contributions

Total Sources Cash balance adjustment Total Funds Available

USES OF FUNDS Operating Expenses Carriage Delivery Pumping Energy & Wheeling Pump Station & Pipeline Reservoir and Dam Programs Total Operating Expenses

Capital Projects Total Projects

Total Expenditures

Contingency Appropriation

Total Uses

Ending Cash and Reserves Unrestricted Total

Total funds accounted for

Fiscal Year2018 Actual

$ 21,049,490

21,049,490

3,645,437 3,645,437

120,867 44,957 165,824

105,571 105,571

3,916,832 ( 609,925 ) $ 24,356,397

1,573,883 342,793 453,571 16,399 1,140,982 3,527,628

165,462 165,462

3,693,090

3,693,090

20,663,307 20,663,307

$ 24,356,397

Fiscal Year2019 Budget

$ 21,328,641

21,328,641

5,152,525 5,152,525

172,120 26,100 198,220

540,000 540,000

5,890,745

$ 27,219,386

2,584,525 840,000 561,227 14,564 1,264,083 5,264,399

908,325 908,325

6,172,724

250,000

6,422,724

20,796,662 20,796,662

$ 27,219,386

Fiscal Year2019 Estimated

Actual

$ 20,663,307 20,663,307

3,595,762 3,595,762

552,200 21,000 573,200

430,000 430,000

4,598,962

$ 25,262,269

1,843,725 343,000 565,227 14,564 1,282,397 4,048,913

807,325 807,325

4,856,238

4,856,238

20,406,031 20,406,031

$ 25,262,269


$ 20,406,031

20,406,031

6,058,000 6,058,000

572,200 26,900 599,100

1,855,000 1,855,000

8,512,100

$ 28,918,131

3,350,000 980,000 593,077 11,035 1,315,049 6,249,161

2,247,700 2,247,700

8,496,861

250,000

8,746,861

20,171,270 20,171,270

$ 28,918,131

PercentageChange from


17 .57% 17 .57%

232 .44% 3 .07% 202 .24%

243 .52% 243 .52%

44 .50%

29 .62% 16 .67% 5 .68% ( 24 .23% ) 4 .03% 18 .71%

147 .46% 147 .46%

37 .65%

36 .19%

Dollar ChangeFrom


$

905,475 905,475

400,080 800 400,880

1,315,000 1,315,000

2,621,355

765,475 140,000 31,850 ( 3,529 ) 50,966 984,762

1,339,375 1,339,375

2,324,137

$ 2,324,137

20



Revenues

Total revenues are expected to be $8,512,100 which is an increase of $2,621,355 or 45 percent from the prior year budget . Revenue from wholesale water assessments are estimated to increase by $905,475 from the fiscal year 2019 budget . Water assessments are estimated on deliveries of 25,000 acre-feet in fiscal year 2020 . Pumping energy and wheeling charges associated with pumping at the Windy Gap Pump Plant are projected to be $28 .00 per acre-foot on 35,000 acre-feet . For fiscal year 2020, the charge for the assessment deferral will be $36 per acre-foot of ownership in the Windy Gap Project . Other projected revenues for fiscal year 2020 will include contributions to the Connectivity Channel of $1,855,000, interest earnings of $572,200 and other income of $26,900 . With no outstanding debt, no charges for debt service are included in water assessments beginning in 2017 .

A summary of total revenues is provided in the chart below:

$6,058,000

$1,855,000

$572,200 $26,900

Water AssessmentsWindy Gap Connectivity ChannelEarnings on InvestmentsOther Nonoperating Revenue

Water Assessments

The three revenue components of the annual water assessments are provided in the charts below:

Water AssessmentsConnectivity Channel ContributionsEarnings on InvestmentsOther Nonoperating Revenues

Total revenues

Budget

$ 6,058,000

1,855,000 572,200

26,900

$ 8,512,100

Percent ofTotal Sources

of Funds

71%

22 6

1

100%

55%29%

16%

Carriage Delivery

Assessment Deferral

Pumping Energy and Wheeling

Carriage DeliveryAssessment DeferralPumping Energy and Wheeling

Total water assessments

Budget

$ 3,350,000 1,728,000

980,000

$ 6,058,000

Percent ofTotal Water

Assessments

55% 28

16

100%

$-

$4

$8

$12

$16

2009 10 11 12 13 14 15 16 17 18 19 20

No Debt Service Charges

Annual Assessments RevenuesActual Estimate Budget

16,134 AF

millions

21



Revenues

Carriage Delivery Assessment

Water delivery assessment is the charge to use the C-BT Project storage system and conveyance to transport Windy Gap Project water from the West Slope of Colorado across the Continental Divide to the East Slope . For fiscal year 2020, the cost recovery charge is projected to be $134 per acre-foot ($34 higher than fiscal year 2019) of water delivered . The water delivery assessment is calculated on the costs of providing the service and on total water carried through the C-BT Project Adams Tunnel . When less water is carried through the tunnel, Windy Gap Project water becomes a larger percent of the total, resulting in higher water delivery cost . In 2015, the water carried through the Adams Tunnel was 113,856 acre-feet, the lowest since the Windy Gap Project began delivering water . This was the driver of higher delivery assessments . A summary of carriage delivery charges is provided in the table and charts below:

$-

$50

$100

$150

$200

2010 11 12 13 14 15 16 17 18

Carriage Costs per Acre-Foot

Assessment Deferral

The assessment deferral is used to support all program costs and to maintain and operate the pump station, reservoir and dam, and stream gauging stations . For fiscal year 2020, the charge is $3,600 per ownership unit of Windy Gap Project water, no change since fiscal year 2014 . This assessment is due whether or not the participant takes delivery of water . A summary of assessment deferral charges is provided in the table and chart below:

Fiscal Year 2020

Assessment Deferral

Per unit

$ 3,600

Per Acre-foot

$ 36

Total

$ 1,728,000

$2,000

$3,000

$4,000

2007 8 9 10 11 12 13 14 15 16 17 18 19 20

No Increase

Assessment Deferral

050,000100,000150,000200,000250,000300,000350,000

0

5,000

10,000

15,000

20,000

25,000

2009 10 11 12 13 14 15 16 17 18

Water through Adams Tunnel LowestSince Operating Windy Gap

Deliveries per Acre-FootWindy Gap Water Delivered Adams Tunnel

Fiscal Year 2020

Carriage Delivery

Acre-Feet

25,000

Charge PerAcre-FootPer Unit

$ 134 .00

Total

$ 3,350,000 $ 3,350,000

Beginning in fiscal year 2020, an additional charge of $34 per acre-foot (1 .79% annual increase) will be assessed to the carriage delivery fee per the carriage contract signed in 2014 .

22


Windy Gap Water Activity Enterprise Fund (continued)

Revenues

Pumping Energy/Wheeling

Energy and wheeling assessment is for pumping Windy Gap Project water primarily during April through May, from the Windy Gap Reservoir on the Colorado River through a six-mile pipeline to Lake Granby . For fiscal year 2020, the charge is projected to be $28 .00 per acre-foot of water delivered (same as fiscal year 2019) . Energy costs are calculated based on a tiered pricing structure with three pricing tiers . Tier 3 is the most expensive tier and starts when water pumped is in excess of approximately 32,000 acre-feet . Amount of water pumped can vary annually based on hydrologic conditions and water storage . Water was pumped in 2018, the first time since 2013, as water storage space was available in Lake Granby . During the times when Windy Gap water is not available, C-BT system water is delivered by the Subdistrict in-lieu of Subdistrict water . The in-lieu water deliveries must provide replacement water or can be met by certain C-BT system spill conditions . Also, Windy Gap Project water was spilled in 2011 and 2014 to make space for C-BT system water . A summary of pumping energy/wheeling charges and tiered pricing structure is provided in the tables and charts below:

Windy Gap Pump Plant

Fiscal Year 2020

Pumping Energy/ Wheeling

Acre-Feet

35,000

Charge PerAcre-FootPer Unit

$ 28 .00

Total

$ 980,000

$-

$20

$40

2008 9 10 11 12 13 14 15 16 17 18

Energy Weighted Average Cost per Acre-Foot

no water pumped

0

25,000

50,000

2009 10 11 12 13 14 15 16 17 18

Water Pumped per Acre-Foot

Tier

1 Energy Price2 Energy Price3 Energy Price

Rate ($/kWH)

0 .03047 0 .04624 0 .08406

23



Expenses

The fiscal year 2020 Windy Gap budgeted expenses are $8,746,861 . The fiscal year 2020 budget represents an increase of $2,324,137 or 36 percent from the fiscal year 2019 budget of $6,422,724 . Operating and maintenance expenditures total $4,934,112, a $933,796 increase from the 2019 budget . Program expenses are projected to be $1,315,049, increasing $50,966 . Capital additions total $2,247,700, an increase of $1,339,375 . The contingency of $250,000 is unchanged from the 2019 budget . Material and services expenses are projected to increase by $2,269,950 or 41 percent primarily related to increased costs in water quality . The Subdistrict has no full-time staff and all personnel services are provided by Northern Water . The Subdistrict reimburses Northern Water for the actual time incurred spent on Windy Gap activities . Labor reimbursement costs are estimated to increase by $54,187 or 6 .4 percent compared to fiscal year 2019 . The increase is related primarily to engineering resources for the Connectivity Channel project .

A summary of the total expenditures is provided in the chart below:

Operating -$4,330,000

Maintenance - $604,112

Programs-$1,315,049

Capital Expenditures-$2,247,700

Contingency-$250,000

Carriage DeliveryMaterials and ServicesPumping Energy and WheelingLaborContingency

Total Major Expenses

38%

37%

11%

10%3%

Carriage Delivery

Materials and Services

Pumping Energy and Wheeling

Labor

Contingency

Percent ofTotal Usesof Funds

38% 37% 11% 10% 3%

100%


$ 3,350,000 3,262,908 980,000 903,953 250,000

$ 8,746,861

A summary of total expenditures by major expense categories is provided in the charts below:

0

4,000

8,000

12,000

2014 Actual 15 Actual 16 Actual 17 Actual 18 Actual 19 Estimate 20 Budget

Signed Final ROD (Final Permit) May 2017

Labor Hours Trend

Windy Gap Enterprise Windy Gap Firming Enterprise

Connectivity Channel

$-

$200

$400

$600

$800

2014 2015 2016 2017 2018

Thousands

Windy Gap EnterpriseActual Labor Costs

A summary of labor costs and hours is provided in the charts below:

24



Operating and Maintenance

Business Plan Priority - collect and deliver water

Carriage expenses for the use of the C-BT conveyance and storage system to deliver Windy Gap water are expected to be the same compared to fiscal year 2020 budget .

Carriage delivery and pumping energy and wheeling are operating expenses driven by volume of water pumped and delivered . Energy and wheeling costs for pumping 35,000 acre-feet of water are projected to be $980,000, no change from 2019 budget . Costs to maintain the pump plant and pipeline are expected to increase $47,699 mainly due to planned SCADA upgrades .

A summary of the operating and maintenance expenses (56 .4 percent of the total uses of funds) is provided in the table and chart below:

Carriage DeliveryPumping Energy and WheelingPump Station and PipelineReservoir and Dam

Total operating and maintenance expenses

Budget

$ 3,350,000 980,000 593,077 11,035

$ 4,934,112

$0

$2

$4

2011 12 13 14 15 16 17 18

MillionsActual Operating and Maintenance

A summary of carriage delivery costs and pumping energy and wheeling costs is provided in the charts below:

$-

$1.0

$2.0

$3.0

2009 10 11 12 13 14 15 16 17 18

Carriage Delivery Costs Pumping Energy and Wheeling Costs

Millions

$-

$1,000

$2,000

2009 10 11 12 13 14 15 16 17 18

Thousands

Carriage Delivery Costs by Entity

Reclamation Northern Water

A summary of pump station, pipeline and reservoir and dams expenses is provided in the charts below:

$0

$10,000

$20,000

$30,000

2014Actual

2015Actual

2016Actual

2017Actual

2018Actual

2019Estimate

2020Budget

Reservoir and Dam Expenses

$- $100 $200 $300 $400 $500 $600 $700

2014Actual

2015Actual

2016Actual

2017Actual

2018Actual

2019Estimate

2020Budget

ThousandsPump Station and Pipeline Expenses

25



Expenses

Programs

Programs expenses (15 .0 percent of the total uses of funds) include primarily outside services and labor . Five additional tables are provided to show detail for Senior Management, Information Technology, Financial Services, Water Quality and Water Resources programs expense .

A summary of programs expenses is provided in the chart and table below:

Senior ManagementWater Quality Financial ServicesCommunicationsInformation TechnologyContracts Allotments and InclusionsWater ResourcesForest HealthFacilitiesWater SchedulingField ServicesReal EstateGeneral EngineeringEmergency and Security

Total Program expenses

Budget

$ 437,395 346,596 118,890 85,342 81,707 66,570 59,248 47,078 31,000 27,586 6,000 4,000 2,904 733

$ 1,315,049

$ 983,208 331,841

$ 1,315,049

Expenses by Category

Non Labor Labor

Total

Percent ofTotal Program

Expenses

33 .3% 26 .4% 9 .0% 6 .5% 6 .2% 5 .1% 4 .5% 3 .6% 2 .4% 2 .1% 0 .5% 0 .3% 0 .2% 0 .1%

100 .0%

$-

$400,000

$800,000

$1,200,000

$1,600,000

2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Atcual 2019 Estimate 2020 Budget

Eight Largest Programs Expenses

Communications Financial Services Contracts Allotments and InclusionsForest Health Information Technology Senior ManagementWater Quality Water Resources Total for Programs

26



Expenses, Programs

Senior Management Program

Business Plan Priority - cultivate operational and organizational excellence and maintain and strengthen relationships

Senior Management program expenses are for general oversight of all Subdistrict activities including water rights, water planning, and policies, rules and procedures . In addition to legal, insurance and Board of Director expenses, costs related to participation in various regional and state-wide cooperative water programs including recovery and stream management and river basin studies are included in the Senior Management program . Also, other Senior Management expenses are charged to many individual projects and activities that are managed and budgeted by program managers .

The Senior Management Program 2020 major initiatives include:

• General oversight of all Northern Water activities and enterprises

• Participation on various regional and state-wide cooperative programs including recovery programs, stream management and river basin studies

• Protection and development of water right assets

• Risk Management, including procurement and administration of general liability and other insurance

• Development and enforcement of policies, rules and procedures

• Coordination of general legal counsel expenses and fees

• Coordination of Northern Water Board of Directors meetings, conferences and other related expenses

• Oversight of campus development program

• Response to major unforeseen contingency projects and expenses

Senior Management employees participate in many individual projects and activities that are managed and budgeted by program managers .

The Senior Management Program 2019 accomplishments include:

• Organized a tour of the lower Colorado River basin in December, attended by board members and key customers

• Convened an all-day retreat of the Board of Directors in February

• Developed policies related to return flows, C-BT water tracking and Article 19 of the contract with Reclamation

• Implemented structural and organizational changes to prepare for major construction projects and anticipated growth

• Provided leadership to various internal initiatives, including campus development planning, annual performance reviews and revisions to meal and clothing expense policies .

27


A summary of Senior Management program expenses is provided in the table below:

Expenditures by Program and Category

Senior ManagementFiscal Year

2018 ActualFiscal Year

2019 Budget


ActualFiscal Year

2020 Budget

DollarChange From


Percentage Change From


Expenditures:Program SummaryGeneral Programs $87,386 $112,153 $112,315 $82,842 -$29,311 -26.13%

Colorado River Wild and Scenic 39,522 43,097 43,097 12,389 -30,708 -71.25% Colorado River Stream Management Plan 19,631 21,403 21,403 21,917 514 2.40% Colorado River Recovery Program 263,587 15,000 -- Colorado River Front Range Council 1,690 21,106 21,106 21,725 619 2.93%Colorado Water Congress 12,756 13,000 13,400 15,000 2,000 15.38%Colorado River Fire Studies 30,701 12,612 12,612 9,915 -2,697 -21.38%Insurance 6,867 8,000 9,091 10,109 2,109 26.36%Legal Matters 61,198 98,599 95,599 98,000 -599 -0.61%Board of Directors 83,662 54,744 57,744 59,990 5,246 9.58%Travel and Training 1,725 3,000 3,000 5,458 2,458 81.93%

Total $608,725 $387,714 $404,367 $337,345 -$50,369 -12.99%

Summary by CategoryLabor $104,508 $86,314 $86,314 $61,745 -$24,569 -28.46%Non Labor 504,217 301,400 318,053 275,600 -25,800 -8.56%Total $608,725 $387,714 $404,367 $337,345 -$50,369 -12.99%

28



Expenses, Programs

Water Quality Program

Business Plan Priority - protect and conserve water supplies

Water Quality expenses are primarily for the Windy Gap portion of expenses incurred for baseline monitoring of streams and reservoirs and water quality studies including a NEPA study in 2019 . Baseline monitoring program objectives are to monitor nutrients, metals, general chemistry, phytoplankton and zooplankton depending on the location . The program tracks long and short term water quality changes in receiving streams, upstream and downstream of where the C-BT Project and Project water is released .

The Water Quality Program 2020 major initiatives include:

• Grand Lake NEPA - Northern Water signed an amendment to the C-BT Repayment Contract in 2013 that lays out commitments to study alternatives to meet the applicable clarity standard in Grand Lake . Reclamation has initiated the NEPA process to evaluate such alternatives . Northern Water is a cooperating agency and will be actively participating in this process . Public notice for the NEPA process is anticipated in Summer 2020 .

• Grand Lake Adaptive Management - In 2016, Northern Water entered into an MOU to work with Reclamation, Grand County, NWCCOG and the River District on an adaptive management approach to improve clarity in Grand Lake while the NEPA process to evaluate alternatives are being studied .

• Data Management Process Upgrade - The Water Quality Program collects a large volume of data and Northern Water and its allottees have made a very significant investment through their water quality monitoring efforts . In order to fully utilize the data for reporting, assessments and modeling, the data need to be properly managed, quality assured and controlled, and stored so they are easily accessible . The volume of data collected has been growing exponentially and existing data management processes and systems are becoming insufficient to maintain the data integrity that is needed . The data handling is time consuming and not as efficient as it needs to be . Northern Water is in the process of upgrading its Data Management System to support organization-wide needs for environmental data management . The Water Quality Department is concurrently evaluating its own data stream processes to reduce inefficiencies, sources of data errors and to improve the implementation of consistent QA/QC protocols .

• WGFP Mitigation & Enhancement Plans and Implementation - With the final Record of Decision from USACE for the Windy Gap Firming Project, mitigation and enhancement commitments now need to be implemented according to timelines set by various permits associated with the project . Among these commitments are extensive nutrient reductions, monitoring, reporting and collaborative efforts to improve river health and aquatic habitat . Staff will continue to work on developing plans to ensure all commitments are met . Labor worked on this initiative is charged to the Windy Gap Firming project .

• Forest Management - Forest health management is an important initiative for Northern Water to protect and maintain the long-term water quality of the C-BT and Windy Gap projects . The program has been expanding in recent years and will continue to grow in the future . Northern Water is currently involved in the C-BT Headwaters Partnership and has taken an active role in pursuing grants and implementing projects to improve forest health and protect infrastructure from wildfire risks .

• Water Quality Program Core Activities - None of the major initiatives previously discussed can take place without maintaining core activities that support the Water Quality Program as a whole . These include monitoring, data management, reporting and assessment, tracking of regulatory issues, monitoring regulatory compliance and outreach efforts .

29



Water QualityFiscal Year


2019 Budget


ActualFiscal Year

2020 Budget

DollarChange From




Expenditures:Program SummaryWater Quality Programs $23,951 $67,317 $67,317 $71,553 $4,236 6.29%Baseline Monitoring 79,042 129,676 129,676 121,226 -8,450 -6.52%Water Quality Studies 7,353 90,000 90,000 121,296 31,296 34.77%Watershed Groups 12,902 18,418 18,418 21,667 3,249 17.64%Regulations 6,549 3,310 3,310 2,917 -393 --Travel and Training 1,299 6,962 6,962 7,937 975 14.00%

Total $131,096 $315,683 $315,683 $346,596 $30,913 9.79%

Summary by CategoryLabor $74,422 $45,236 $45,236 $81,440 $36,204 80.03%Non Labor 56,674 270,447 270,447 265,156 -5,291 -1.96%Total $131,096 $315,683 $315,683 $346,596 $30,913 9.79%

A summary of Water Quality program expenses is provided in the table below:

The Water Quality Program 2019 accomplishments include:

• Completed water quality monitoring to support District planning and permit requirement form 55 (25 sites on the West Slope and 30 on the East Slope) stream and reservoirs

• Coordinated efforts with Bureau of Reclamation, Colorado Parks and Wildlife and Larimer County to provide closure for boat ramps so that no boat may launch without inspection and decontamination of aquatic nuisance species . Northern Water contributed funding for gates that allow boats to take off, but not enter the reservoirs without an inspector present .

30



Expenses, Programs

Financial Services Program

Business Plan Priority - cultivate operational and organizational excellence

The Financial Services program provides financial services including fund accounting, preparation of the Comprehensive Annual Financial Report, cash disbursements, fixed asset reporting, cash management, accounts receivable and financial planning for the annual budget and ad hoc financial analyses for special projects . Expenses include costs for the annual independent audit and cash management services as well as labor charges for services provided by Northern Water for accounting and budgeting services described herein .

The Financial Services Program 2020 major initiatives include:

• Complete audit of 2019 financial records with an unmodified opinion

• Complete Comprehensive Annual Report and received Government Officers Association award for excellence in financial reporting

• Complete operating and non-operating budgets and receive Government Finance Officers Association Distinguished Budget Presentation Award

• Analyze and update overhead cost allocation policies and procedures

• Upgrade comprehensive financial software

• Refine purchasing policies

• Complete Accounting Policies and Procedures manual

A summary of Financial Services program expenses is provided in the table below:


Financial ServicesFiscal Year


2019 Budget


ActualFiscal Year

2020 Budget

DollarChange From




Expenditures:Program SummaryAccounting Services $25,455 $25,991 $25,991 $28,949 $2,958 11.38%Audit 36,859 41,312 40,862 41,490 178 0.43%

Treasury 23,750 26,946 26,507 22,987 -3,959 -14.69% Budget 21,665 35,635 36,185 25,464 -10,171 -28.54%

Total $107,729 $129,884 $129,545 $118,890 -$10,994 -8.46%

Summary by CategoryLabor $70,377 $89,565 $89,565 $77,172 -$12,393 -13.84%Non Labor 37,352 40,319 39,980 41,718 1,399 3.47%Total $107,729 $129,884 $129,545 $118,890 -$10,994 -8.46%

31



Expenses, Programs

Communications Program

Business Plan Priority - maintain and strengthen relationships

The Communications program provides internal and external communications and public outreach for the Municipal Subdistrict . Major functions and responsibilities include: facility tours and public speaking activities; coordinating, editing and writing all web, social media and printed materials; developing, coordinating and maintaining displays, maps and photos; and drafting Board and committee meeting minutes .

In fiscal year 2020, the Communications program plans to update the Windy Gap informational brochure including associated graphics and videos in support of its continued effort to expand outreach formats to tell the public about the Subdistrict through stories, activities and projects .

The Communications Program 2020 major initiatives include:

• Redesign the main Northern Water website, including Municipal Subdistrict content

• Continue to expand public outreach formats, including increased video production for web and social media platforms

• Utilize new Northern Water/Colorado-Big Thompson Project short video in public outreach and education efforts

• Continue to develop new Water Efficiency Program outreach and public affairs materials including new web content

• Continue to refine and expand new intranet (The Conduit) site

• Pursue cooperative signage agreements with Larimer County and Reclamation

The Communications Program 2019 accomplishments include:

• Production of a new Northern Water/Colorado-Big Thompson Project overview video, the organization’s first general video update in nearly 25 years

• Expansion of Communications’ short video production highlighting various Northern Water and Municipal Subdistrict projects and work efforts

• Launch of new interlan (In the Pipeline) and external (E-Waternews) communications tools via Granicus and GovDelivery

• Complete redesign of Northern Water’s Annual Report

• Hosting an all-day West-to-East Slope public tour on August 29th, which will highlight C-BT and Municipal Subdistrict facilities and proposed projects (targeted towards West Slope residents)

A summary of Communications program expenses is provided in the table below:


Communications Fiscal Year


2019 Budget


ActualFiscal Year

2020 Budget

DollarChange From




Expenditures:Program SummaryCommunications Programs $64,627 $73,254 $73,254 $80,342 $7,088 9.68%Communications Tours 8,823 5,644 5,644 5,000 -644 -11.41%

Total $73,450 $78,898 $78,898 $85,342 $6,444 8.17%

Summary by CategoryLabor $60,651 $50,398 $50,398 $36,842 -$13,556 -26.90%Non Labor 12,799 28,500 28,500 48,500 20,000 70.18%Total $73,450 $78,898 $78,898 $85,342 $6,444 8.17%

32



Expenses, Programs

Water Resources Program

Business Plan Priority - protect and conserve water supplies

The Water Resources program performs engineering activities that support the Subdistrict with specific water rights investigations, operations modeling, river basin modeling, water availability studies, water supply quantifications and streamflow forecasting . Water Resources expenses for streamflow forecasting include the cost of forecast software as well as charges for USGS flow gaging . Budgeted expense for climate change is for outside consultant engineering work .

The Water Resources Program 2020 major initiatives include:

• Stream Flow Forecasting - continuing to perfect stream flow forecasts using the latest models and techniques available

• Water Supply Forecasting - continue to inform the Board and management of C-BT and Windy Gap supplies and availability for allocation and use

• Operations Modeling - refine modeling of C-BT and Windy Gap Projects operations with RiverWare software

• Water Rights Protection/Base Water Supplies - file statements of opposition and continue due diligence to protect C-BT Project water rights, NISP water rights and Windy Gap water rights

• Climate Change - investigate impacts to water supplies due to climate change

The Water Resources Program 2019 accomplishments include:

• Produced water supply and operations forecasts of the C-BT and Windy Gap projects and informed the Board, management and participants of water availability for allocation and use

• Filed statements of opposition to protect C-BT, NISP and Windy Gap water rights and completed due diligence on C-BT water rights

• Participated in a water supply vulnerability study that included a forecast of potential future water supply availability for the C-BT and Windy Gap projects

A summary of Water Resources program expenses is provided in the table below:


Water ResourcesFiscal Year


2019 Budget


ActualFiscal Year

2020 Budget

DollarChange From




Expenditures:Program SummaryWater Resources General $3,923 $3,504 $3,504 $3,153 -$351 -10.02%Stream Flow Forecast 19,894 29,918 29,918 32,212 2,294 7.67%Climate Change 1,250 20,000 2,000 12,000 -8,000 -40.00%Riverware System Model 1,518 1,635 1,635 1,500 -135 -8.26%WG Project Operations 4,047 2,649 2,649 2,668 19 0.72%Water Rights, Diligence 772 860 860 135 -725 -84.30%Travel and Training 6,801 5,426 5,426 7,580 2,154 39.70%

Total $38,205 $63,992 $45,992 $59,248 -$4,744 -7.41%

Summary by CategoryLabor $18,848 $14,664 $14,664 $17,216 $2,552 17.40%Non Labor 19,358 49,328 31,328 42,032 -7,296 -14.79%Total $38,205 $63,992 $45,992 $59,248 -$4,744 -7.41%

33



Expenses, Programs

Information Technology Program


The Information Technology program provides technical resources for network infrastructure, software maintenance, data management and client services in support of Subdistrict activities . Infrastructure support provides design, maintenance and troubleshooting of the network and other IT infrastructure including computers, switches, firewalls and connections to outside communication entities . Client support services provides a broad range of services including help desk calls, audio visual support and workstation management . Information Technology expenses are primarily incurred by Northern Water and charged to the Subdistrict .

The Information Technology Services Program 2020 major initiatives include:

• Microsoft Enterprise Agreement (EA) - The Microsoft Licensing Agreement moves Northern Water from an individual based licensing model to an Enterprise based licensing model . The Microsoft Enterprise License Agreement is divided into two sections . The first section is Office 365 licensing and the second section is for Server OS and System Center products . Northern Water currently has 165 Office 365 licenses . These licenses cover products such as Email, Word, Excel, PowerPoint, Visio, Microsoft Project as well as many others such as Microsoft Teams . The fiscal year 2020 budget includes costs for licenses to cover projected hires as well as additional Microsoft product additions .

Northern Water has approximately 150 servers and 200 workstations . System Center products are responsible for OS patching, software tracking and deployments for all the servers and workstations as well as management of our virtual machine environment .

• Windows 10 Upgrade, Storage Area Network, etc. - In fiscal year 2019 and continuing into fiscal year 2020, Northern Water will be upgrading from Windows 7 to Windows 10 since Windows 7 will no longer be supported as of January 2020 . Currently Northern has 200 workstations and 50 laptops that will be impacted by this upgrade .

• Cisco Maintenance, Network Monitoring Software, Network Communication - Cisco product maintenance will be in the third year of a three-year agreement in fiscal year 2020 . Also, Northern Water is looking to provide both increased internet capacity and business continuity on the West Slope . Key vendors have been contacted to evaluate locations that would provide the network bandwidth to other nearby locations . Several options are being evaluated to determine the most economical solution including offsets to costs for the current MPLS connection between Windy Gap and Berthoud which would be redundant once the new links are established .

The Information Technology Services Program 2019 accomplishments include:

• System Center Configuration Manager program was installed to manage our clients and servers operating system security and patch updates . Northern Water was able to raise our software update compliance from under 10% to over 80% .

• Northern Water file shares were moved from a static based file system to a virtual clustered environment, increasing their resiliency against server failures and increasing uptime

• Commvault Hyperscale installation increased disaster recovery capabilities, backup capacity and speed while eliminating hardware costs

• Northern Water has made two significant upgrades to our Cisco phone system:

• The first was to move the phone system from a hardware-based system to a virtualized system . This virtualized system will allow for better flexibility and uptime by allowing movement from one environment to another, as well as, improved our disaster recovery capability

• The second was the addition of E911, which allows Northern Water to provide 911 capabilities to remote locations . If an employee needs help in a remote location, a call to 911 will bring help to their location instead of to the headquarters campus .

• OpenText eDocs software upgrade and migration to new application, web and database servers

34



Information Technology Fiscal Year


2019 Budget


ActualFiscal Year

2020 Budget

DollarChange From




Expenditures:Program SummaryIT Support Services $68,610 $55,000 $70,000 $70,000 $15,000 27.27%

Geographic Information System 1,937 1,550 1,550 5,052 3,502 225.94%Travel and Training 5,959 3,372 3,372 6,655 3,283 97.36%

Total $76,506 $59,922 $74,922 $81,707 $21,785 36.36%

Summary by CategoryLabor $7,896 $4,922 $4,922 $11,707 $6,785 137.85%Non Labor 68,610 55,000 70,000 70,000 15,000 27.27%Total $76,506 $59,922 $74,922 $81,707 $21,785 36.36%

A summary of Information Technology program expenses is provided in the table below:

35



Expenses, Programs

Contracts Program


The Contracts, Allotments and Inclusions program provides administrative services to assure that all lands receiving Windy Gap water are within the boundaries of the Subdistrict . All petitions for inclusion are reviewed and processed and submitted to the Board of Directors for approval before being submitted to the U .S . Bureau of Reclamation for Secretarial Assent . Once Secretarial Assent is received, all documentation is sent to legal counsel to prepare a motion to District Court for Order including lands into Subdistrict boundaries . In addition, any changes or transfers of allotment contracts for 480 acre-feet units are processed through the Contracts, Allotments and Inclusions program .

The Contracts Program 2020 major initiatives include:

• Continue to streamline contracting process with project managers and outside vendors

• Utilize new contract management software to improve reporting formats including contract and close-out dates, insurance expirations and to track contract budget balances

The Contracts Program 2019 accomplishments include:

• Completed an inventory review of all insured assets, including an update of each asset’s record in the asset management system and a verification of its replacement cost estimate

• Strengthened the review process for Certificates of Insurance (COI) and implemented a tickler system to track COI expiration dates

A summary of Contracts Program expenses is provided in the tables below:


Contracts Allotments and Inclusions




ActualFiscal Year

2020 Budget

DollarChange From




Expenditures:Program SummaryAllotments $1,715 $3,500 $3,500 $5,261 $1,761 50.31%Inclusions 52,685 53,073 58,073 61,309 8,236 15.52%

Total $54,400 $56,573 $61,573 $66,570 $9,997 17.67%

Summary by CategoryLabor $32,909 $24,084 $24,084 $33,073 $8,989 37.32%Non Labor 21,491 32,489 37,489 33,497 1,008 3.10%Total $54,400 $56,573 $61,573 $66,570 $9,997 17.67%

36



Debt Service Expenditures

At this time, Windy Gap has no noncurrent liabilities . All outstanding indebtedness incurred for the construction of the Windy Gap Project was fully defeased in 2016 . There are no future Windy Gap capital projects planned that will be funded by capital financing . The Subdistrict does not have a specific debt limit dollar amount threshold .

Capital Projects

Connectivity ChannelWindy Willow Flow MeterFuels Treatment and Wildfire Risk

Total


$ 2,005,000 175,000 67,700

$ 2,247,700

TotalCost Estimate

$ 15,000,000 175,000 67,700

$ 15,242,700

Colorado River Connectivity Channel Project $540,000

As part of the 1041 permit conditions for the Windy Gap Firming Project, the Windy Gap Reservoir Modification Study preferred alternative was creation of the Connectivity Channel . The Connectivity Channel Project is a modification to the existing Windy Gap dam as necessary to bypass flows through and/or around the Windy Gap Reservoir . The focus for 2020 will be completion of the final design . The project contributions will be from the Windy Gap Firming Project and several other organizations . The project is awaiting full funding; meanwhile, the Subdistrict is studying potential increased/decreased operating and maintenance costs .

The Forest and Watershed Health Program focuses on the protection of C-BT and Windy Gap water supplies from the potential adverse effects of wildfire by proactively engaging in pre-fire planning and fuels management activities, engaging in the management and communication of fire suppression efforts and coordinating and implementing necessary post-wildfire responses . The Subdistrict will continue to participate in and fund consultant planning activities for the Colorado-Big Thompson Headwaters Partnership, pursue and implement fuels management activities associated with Colorado Department of Natural Resources Wildfire Risk Reduction Program, pursue and implement other fuels management activities and participate in training to support emergency response .

Fuels Treatment and Wildfire Risk $103,325

The Carriage Agreement with the Bureau of Reclamation requires that water flow be measured into Lake Granby . The new ultrasonic flow meter will provide accurate flow measurement by replacing the existing 34-year old measuring device with a level sensor . There will be no new impact to operating costs from this project . Following installation, the meter will be inspected as part of standard pipeline inspections .

Windy Willow Flow Meter $250,000

Net Cash Flows from (use) OperationsNet Cash Produced

Beginning Net PositionEnding Net Position


Actual

$ 120,049 120,049

36,073,391 $ 36,193,440


$ 407,939 407,939

36,193,440 $ 36,601,379

Projected Net Position - Windy Gap

The projected net position below is for fiscal years 2019 and 2020 . Net position is the residual of all other financial statement elements presented in a statement of net position .


( $ 1,701,665 ) ( 1,701,665 )

37,775,056 $ 36,073,391

Future Costs

$ 12,995,000

$ 12,995,000

37


WGFP is a collaboration between Front Range water providers to improve the reliability of (i.e. “firm”) water supplies from the Windy Gap Project. This reliability will be established by development of the

Chimney Hollow Reservoir and related appurtenances, providing dedicated storage capacity for Windy Gap Project water.

38




PercentageChange From


8 .03% 123 .33%

8 .04%

( 52 .00% ) N/A N/A ( 36 .65% ) ( 63 .98% ) 185 .71%

( 39 .44% )

Beginning Cash

SOURCES OF FUNDS Contributions and Bond Proceeds Interest and Rental Income

Total Sources

Cash balance adjustment

Total funds available

USES OF FUNDS Capital Planning Permits Design Land and Improvements Construction Mitigation and Enhancements Property Management

Total Uses

Ending cash

Total funds accounted for

Fiscal Year 2018Actual

$ 11,124,511

9,002,701 73,642

9,076,343

( 493,776 )

$ 19,707,078

$ 30,366 212,371 9,612,497 379,767 1,545,443 1,201,288 32,672

13,014,404

6,692,674

$ 19,707,078

Fiscal year 2019 Budget

$ 4,181,546

521,600,000 30,000

521,630,000

$ 525,811,546

$ 500,000

109,690,383 12,343,450 12,950

122,546,783

403,264,763

$ 525,811,546

Fiscal year2019 Estimated

Actual

$ 6,692,674

10,000,000 66,452

10,066,452

$ 16,759,126

$ 10,000 50,000 3,100,000 2,100,000 5,500,000 10,450

10,770,450

5,988,676

$ 16,759,126

Fiscal year 2020 Budget

$ 5,988,676

563,500,000 67,000

563,567,000

$ 569,555,676

$ 240,000 69,487,350 4,445,650 37,000

74,210,000

495,345,676

$ 569,555,676

Dollar ChangeFrom

Fiscal Year 2019Budget

$

41,900,000 37,000

41,937,000

( 260,000 )

( 40,203,033 ) ( 7,897,800 ) 24,050

( $ 48,336,783 )

Beginning Cash

$5,988,676

Sources ofFunds

$563,567,000

Uses ofFunds

$74,210,000

Ending Cash

$495,345,676

39


Windy Gap Firming Project Water Activity Enterprise Fund Overview (continued)

Business Plan Priority - plan and implement new water supplies

The Windy Gap Firming Project Water Activity Enterprise Fund is self-supporting through participants’ contributions . The Subdistrict has undertaken the Windy Gap Firming Project to increase the reliable firm yield of the existing Windy Gap Project . The annual delivery of Windy Gap Project water is not reliable in years of low spring runoffs, due to the Windy Gap Project’s junior water rights, and conversely, during some wet periods, storage space in Granby Reservoir is not available for Windy Gap Project water . In 1999, a group of the Windy Gap Project participants working through the Subdistrict, initiated the proposed Windy Gap Firming Project to complement the Windy Gap Project by firming a portion of their Windy Gap Project water units . The Windy Gap Firming Project participants include the Platte River Power Authority, Central Weld County Water District, Little Thompson Water District and the municipalities of Broomfield, Fort Lupton, Greeley, Lafayette, Longmont, Louisville, Loveland, Superior and Erie .

The specific purpose of the Windy Gap Firming Project is to increase the firm yield to approximately 30,000 acre-feet of water from the existing Windy Gap Project . Additional reliability and yield will be achieved by constructing a new 90,000 acre-foot reservoir, the Chimney Hollow Reservoir, located southwest of Loveland and just west of Carter Reservoir, dedicated to store Windy Gap Project water . Firm water deliveries from the Windy Gap Project are needed to meet a portion of the existing and future demands of the Windy Gap Firming Project participants and ultimately the existing and future demands the end users served within the boundaries of the Subdistrict .

The permitting process for the Windy Gap Firming Project began in 2003 and has included a 1041 permit which was received from Grand County in 2012, and an official Record of Decision (ROD) that was received from the U .S . Bureau of Reclamation in 2014, approving construction and operation of the Chimney Hollow Reservoir and a physical connection of the Chimney Hollow Reservoir and appurtenant facilities to the C-BT Project facilities . The Colorado Department of Public Health and Environment issued its 401 water quality certification for the Windy Gap Firming Project on March 25, 2016 . Also, the State of Colorado officially endorsed the Windy Gap Firming Project and Chimney Hollow Reservoir on April 12, 2016 . The final ROD and federal 404 Clean Water Act (CWA) permit from the U .S . Army Corps of Engineers was signed on May 17, 2017 . This 404 CWA permit is the final federal requirement needed to construct Chimney Hollow Reservoir . Final design began in 2017 and construction is slated to begin in 2020 . The reservoir could be completed and operational in 2024 . The estimated cost of the reservoir and appurtenant facilities is approximately $563 .6 million . Following completion of construction, the projected operation and maintenance costs are currently forecasted to be approximately $2 million annually .

The fiscal year 2020 Windy Gap Firming Project budget totals $74 .2 million . The increase is due to the planned construction of Chimney Hollow Reservoir .

A summary of construction in progress costs and contributions are provided in the charts below:

$- $100 $200 $300 $400 $500 $600

$- $2 $4 $6 $8

$10 $12 $14 $16

2012 13 14 15 16 17 18 19 20

MillionsMillions

Contributions

Actual Projected

$-

$50

$100

$150

2012 13 14 15 16 17 18 19 20

Millions

Construction in ProcessActual Estimate

40

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictWindy Gap Firming Project

Hansen Feeder Canalto Horsetooth Reservoir

Saint Vrain Supply Canal to Lyons

SouthernWater SupplyPipeline

Flatiron Penstocks

PowerPlant

Access Road

Bald Mountain Tunnelfrom Pinewood Reservoir Chimney Hollow

Inlet Pipe

SpillwayChannel

Dam

Dam

Dam

Dam

DamDam

Inlet/Outlet Tunnel

ChimneyHollow Reservoir

CarterLakeReservoir

FlatironReservoir

Proposed Chimney Hollow

Facilities

Flatiron/CarterPressure Tunnel

Spillway Canal& Stilling Basin18E

18E

31

31

8E

C-BT Project Existing FacilitiesChimney Hollow PipelineSpillway ChannelInlet/Outlet TunnelSpillway CanalProposed Dams

Legend

Northern Colorado Water Conservancy DistrictMunicipal Subdistrict

41


Windy Gap Firming Project Proposed Financing Structure

The anticipated plan for financing consists of a Senior/Subordinate structure in which the Windy Gap Firming Water Activity Enterprise will issue Senior Lien Revenue Bonds (Senior Bonds) and will also enter into a Subordinate Lien Loan (Subordinate Loan) from the Colorado Water Conservation Board (CWCB) . The amount of the Subordinate Loan will be up to $90 million . Section 12 of House Bill 17-1248 authorized the CWCB to make the Subordinate Loan for the Windy Gap Firming Project . The Governor signed the bill on May 23, 2017 . Final approval of the Subordinate Loan by CWCB was November 15, 2017 .

The Senior Bonds are anticipated to be a fixed-rate bond issuance of approximately $194 to $374 million . The proceeds of the Senior Bonds along with the Subordinate Loan, when combined with other funds provided by the Windy Gap Firming Project participants, will be used to pay the costs associated with the construction and completion of the Windy Gap Firming Project . It is expected that the Senior Bonds will close by summer 2020 .

Projected Net Position - Windy Gap Firming

The projected net position below is for fiscal years 2019 and 2020 . Net position is the residual of all other financial statement elements presented in a Statement of Net Position .

ContributionsNet Cash Produced

Beginning Net PositionEnding Net Position


$ 9,076,343 9,076,343

43,696,348 $ 52,772 .691


Actual

$ 10,000,000 10,000,000

52,772,691 $ 62,772,691


$ 563,567,000 563,567,000

62,772,691 $ 626,339,691

The significant increase in net position is the result of receiving contributions with no operation and maintenance expense . This fund has no operations at this time and will start when the Chimney Hollow Reservoir is completed .

Percent ofTotal Usesof Funds

93 .64%

5 .99% 0 .32% 0 .05%

100%93.64%

5.99%

0.32% 0.05%

ConstructionMitigation and EnhancementsPermitsProperty Management

ConstructionMitigation and EnhancementsPermitsProperty Management

Total

Budget

$ 69,487,350

4,445,650 240,000 37,000

$ 74,210,00

Windy Gap Firming Project Water Activity Enterprise Fund Overview (continued)

Capital Expenditures

A summary of the expenses is provided in the table and charts below:

42

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictWindy Gap Firming Project Participants

N

C-BT Delivery System

Northern Water Boundaries

CARTERLAKE

HORSETOOTHRESERVOIR

RAWHIDEEnergy Station

FLATIRONRESERVOIR

BOULDERRESERVOIR

South Platte River 2

4 5

12

3

119

18

Cache la Poudre River

6

7

10

Participants Storage Volume

(acre-foot) Percent1 Broomfield 26,464 29.40%

2 PRPA Service Area 16,000 17.78%

4 Loveland 9,587 10.65%

5 Greeley 9,189 10.21%

3 Longmont 8,000 8.89%

6 Erie 6,000 6.67%

7 Little Thompson Water District 4,850 5.39%

8 Superior 4,726 5.25%

9 Louisville 2,835 3.15%

10 Fort Lupton 1,103 1.23%

11 Lafayette 900 1.00%

12 Central Weld County Water District 346 0.38%90,000 100%

43


Municipal Subdistrict District Fund Overview

The Municipal Subdistrict District Fund, in accordance with Colorado statutes, is the owner of the Windy Gap Water Activity Enterprise Fund and the Windy Gap Firming Project Water Activity Enterprise Fund .


PercentageChange From


Beginning cash

SOURCES OF FUNDS

Revenues Contributions Earnings on Investments

Total Sources

Total Funds Available

USES OF FUNDS

Expenses Board of Directors

Total Uses

Ending Cash

Total Funds Accounted For

Board Expenses FICA Legal fees Directors’ fees Travel/lodging/meals/data Bonds

Total


$ 16,040

81,000 2

81,002

$ 97,042

$ 80,861

80,861

16,181

$ 97,042

$ 2,356 25,324 30,800 22,281 100

$ 80,861


$ 15,162

100,050 2

100,052

$ 115,214

100,050

100,050

15,164

$ 115,214

$ 2,200 37,950 28,800 25,500 5,600

$ 100,050

Fiscal year2019 Estimated

Actual

$ 16,181

78,600 2

78,602

$ 94,783

$ 79,480

79,480

15,303 $ 94,783

$ 2,200 24,880 28,800 23,500 100

$ 79,480


$ 15,303

100,050 2

100,052

$ 115,355

100,050

100,050

15,305

$ 115,355

$ 2,200 37,950 28,800 25,500 5,600

$ 100,050

Dollar ChangeFrom

Fiscal Year 2019 Budget

44

Municipal Subdistrict, Northern Colorado Water Conservancy District

Acronyms and Glossary

45

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictAcronyms A - G

AFAcre-foot or Acre-feet

CAFRComprehensive Annual Financial Report

C-BTColorado-Big Thompson Project

CIPCapital Improvement Plan

COEU .S . Army Corps of Engineers

COPsCertificates of Participation

CWCBColorado Water Conservation Board

CRSColorado Revised Statutes

CWAClean Water Act

DEISDraft Environmental Impact Statement

DOLADepartment of Local Affairs (Colorado)

EAMEnterprise Asset Management

EISEnvironmental Impact Statement

EPAEnvironmental Protection Agency

FEMAFederal Emergency Management Agency

FTEFull time equivalent

FONSIFinding of no significant impact

GAAPGenerally Accepted Accounting Principles

GASBGovernmental Accounting Standards Board

GISGeographic Information System

46

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictAcronyms H - Z

IPSInvestment Policy Statement

NEPANational Environmental Policy Act

NORTHERN WATERNorthern Colorado Water Conservancy District

NRCSNatural Resource Conservation Service

NWRANational Water Resource Association

RODRecord of Decision

ROWRight of Way

SUBDISTRICTMunicipal Subdistrict, Northern Colorado Water Conservancy District

TABORTaxpayers Bill of Rights, revenue and tax limit amendment . See Amendment 1 (glossary) .

TIFTaxing Increment Finance District

47

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictGlossary

Accounting StandardsSubdistrict’s financial statements are prepared in accordance with principles generally accepted in the United States of America (GAAP) . Additionally, the Subdistrict applies all applicable pronouncements of the Governmental Accounting Standards Board .

Acre-foot or Acre-feetVolume of water equal to one foot in depth covering an area of one acre, or 43,560 cubic feet; approximately 325,851 gallons . One acre-foot is roughly the amount needed to serve 2 .5 families each year .

Adopted BudgetThe budget adopted by the Board of Directors at the August Planning and Action meeting . The adopted budget becomes effective annually as of October 1, and appropriations lapse at fiscal year end (September 30) .

AllocationsDistribution of costs .

Amendment 1Approved by the electorate in the November 1992 election, this amendment is known as the Taxpayers Bill of Rights (TABOR) . This is a revenue and expenditure limiting amendment to the Colorado constitution . The limit is determined by whichever is more restrictive to the growth of government .

AppropriationLegal authorization granted by the Board to make expenditures as specified in the appropriating resolution .

AssetsEconomic resources owned by the Subdistrict .

AuditA systematic collection of sufficient, competent evidential matter needed to attest to the fairness of management’s assertions in the financial statements .

Basis of AccountingThe Subdistrict’s financial statements are accounted for on the flow of economic resources measurement focus, using the accrual basis of accounting . Under this method, all assets and liabilities associated with operations are included on the statement of net assets, revenues and are recorded when earned, and expenses are recorded at the time liabilities are incurred . This is different from the basis of budgeting .

BoardIn the Subdistrict, this is a 12-member group of appointed officials .

BudgetA financial plan for a specified period of time (fiscal year) that assigns resources to each activity in sufficient amounts so as to reasonably expect accomplishment of the objectives in the most cost-effective manner .

Budget HearingA publicly held meeting where the public can comment or ask questions about the proposed budget .

Capital PolicyInitial acquisition costs of assets are capitalized if they have a service life of more than one year and a cost of $5,000 or more . Costs not meeting these criteria are expenses . Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective asset classes .

Capital ProjectExpenditures which result in the construction of or major improvements to buildings and infrastructure; generally consist of projects costing more than $5,000 and lasting more than three years .

Clean Water ActThe federal law that establishes how the United States will restore and maintain the chemical, physical and biological integrity of the country’s waters (oceans, lakes, streams and rivers, ground water and wetlands .) The law provides protection for the country’s waters from both point and nonpoint sources of pollution .

48


Colorado Local Government Budget LawAll local governments are required to conform to the budget regulations of Title 29, Article 1, Part 1 of the Colorado Revised Statutes which define the legal requirements for budget format and content . It covers budget hearing and adoption; appropriations resolution; filing the budget; and changing the budget .

CommitmentsObligations in the form of purchase orders, contracts or salary commitments .

ContingencyAppropriation to cover the deficiency that might arise where an expenditure could not be foreseen at the time the budget was prepared .

COPsCertificates of Participation are a kind of municipal debt which can be contracted by cities/counties without voter approval . Courts have ruled that, because of their structure, COPs do not constitute long-term obligations of the issuing authority, and are therefore exempt from state and local laws that require voter approval of long-term debt .

Debt ServiceCash required in a given period, usually one year, for payment of interest and current maturities of principal for outstanding debt .

DepreciationThe expiration in the service life of an asset generally attributable to wear and tear through use, lapse of time or obsolescence . Depreciation is generally not budgeted; however, it is accounted for on the financial statements .

Direct CostAn expense that can be traced directly to (or identified with) a specific cost center or activity . A direct cost may include labor, materials, services and equipment charges .

EmergencyAn emergency is defined as an a) Act of God; b) Public Enemy; and c) something which could not have been reasonably foreseen at the time of the adoption of the budget . For the purpose of TABOR this is further restricted to exclude economic conditions, or revenue shortfalls .

EnterpriseAn entity that qualifies under the Taxpayer’s Bill of Rights (TABOR) as being a government-owned business authorized to issue its own revenue bonds and receiving fewer than 10 percent of its annual revenue in grants from all Colorado state and local governments combined .

Enterprise Asset Management (EAM)Software system to manage the Windy Gap Project infrastructure with a preventative maintenance program .

ExpensesCharges incurred, whether paid or unpaid for operation, maintenance, and interest, and other charges, which are presumed to benefit the current fiscal period .

Fiscal PeriodA period of time usually consisting of twelve months . At the end of the fiscal period a government unit determines its financial position and the results of its operations . Subdistrict’s fiscal period is October 1 to September 30 .

Fixed CostIndirect or overhead expense of a business that does not vary with the volume of activity

FundFiscal and accounting entity with self-balancing set of accounts which are segregated usually by financial resources or other special regulations, restrictions, or limitations .

Generally Accepted Accounting PrinciplesUniform minimum standards and guidelines for financial accounting and reporting, and encompasses the conventions, rules, and procedures necessary to define accepted accounting practices .

49


GFOAAn organization whose membership consists of government financial officers throughout the United States and Canada . Information on pertinent legislation, accounting changes, new programs or innovations is shared with members in a regular newsletter . Career seminars and educational classes are provided regularly .

Governmental Accounting Standards BoardThe authoritative accounting and financial reporting standard-setting body for government entities .

HydropowerHydroelectric power of/or relating to production of electricity of water power .

Indirect CostAn expense that cannot be traced directly to (or identified with) a specific cost center or activity . Indirect costs types may include indirect labor, indirect materials and overhead costs .

Internal ControlsA plan of organization under which employee’s duties are so arranged and records and procedures so designed as to make it possible to protect and exercise effective accounting control over assets, liabilities, revenues and expenditures .

Long-term debtDebt with a maturity of more than one year from date reported .

Net RevenuesGross revenue less operating and maintenance expenses .

Nonoperating RevenueRevenue received from property and specific ownership taxes, investment income, and other nonoperating revenues .

Operating RevenueRevenue from water assessments, charges for services, energy and other operating revenue .

Operation and Maintenance (O&M) ExpensesAll reasonable and necessary current expenses paid or accrued for operating, maintaining, and repairing the Windy Gap Project .

Operation and Maintenance Work PlanA category of master plan items not capital in nature, that are normally ongoing activities and pertain to the general operations of the Subdistrict .

Political SubdivisionA county, city, town, or other municipal corporation, a public authority, and generally any publicly owned entity that is an instrumentality of a state or of a municipal corporation

Principal and Interest RequirementsAs used in the debt guidelines, interest requirements plus the current portion of long-term debt . (Includes general obligation bonds, certificates of participation and capital leases .)

Professional ServicesConsists of consultant payments for consultants to provide services such as facility design, legal work and auditors .

ProgramAn organized group of activities and the resources to carry them out, aimed at achieving related goals .

Program BudgetA method of budgeting in which the focus is on the project and activities that are required to accomplish the Subdistrict’s mission, goals and objectives . It provides for consideration of alternative means to accomplish these criteria . It also provides a control device for higher level management and cuts across organizational lines . Resources are allocated along program lines and across organizational lines .

50

Proprietary FundsUsed to account for activities that are similar to businesses in the private sector . These funds are considered self-supporting in that the services rendered by them are generally financed through user charges or on a cost reimbursement basis . There are two types of proprietary funds such as Enterprise Funds and Internal Services Funds .

Pump StationsA pump station is a manmade structure that uses a pump to transfer water from one location to another .

Purchase OrderA document which authorizes the delivery of specified services .

Quasi Municipal CorporationA quasi corporation generally refers to an entity that exercises some of the functions of a corporation, but has not been granted separate legal personality by statute, particularly a public corporation with limited authority and powers such as a county or school district .

RatingThe credit-worthiness of the Subdistrict as evaluated by independent agencies .

Raw WaterUntreated water .

ReclamationUnited States Bureau of Reclamation

Record of DecisionIn the United States, a Record of Decision is the formal decision document, prepared by a governmental agency, which is recorded for the public .

ReservoirAn impoundment to collect and store water . Raw water reservoirs impound water in a watershed; terminal reservoirs collect water where it leaves a watershed to enter the treatment process; and treated-water reservoirs are tanks or cisterns used to store potable water .

Revenue BondsBonds whose principal and interest are payable exclusively from a dedicated revenue source .

RevenuesThe Subdistrict is completely funded through assessments

Risk ManagementThe Subdistrict is exposed to various risks of losses

Statutory Property Tax Revenue LimitColorado Revised Statute 29-1-301 . Property tax increases are limited to 5 .5% from one tax year to the next . An adjustment for growth factor is allowed for new construction . The exemptions to this restriction are payment of bonds, payment of other contractual obligations approved by voters, and capital expenditures allowed by “Truth in Taxation” legislation .

Strategic PlanProcess that is a practical method used by organizations to identify goals and resources that are important to the long-term wellbeing of its future .

Supplemental Budget RequestAppropriations may be changed to allow for unforeseen circumstances that may occur after the budget has been adopted .

Taxing Increment Finance DistrictTax increment financing is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community improvement projects .

TIFTaxing increment financing is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects .


51


Type of ExpenditureA classification of resources or commodities that will be budgeted and charged to projects and activities by cost control centers .

Water Conservancy DistrictWater Conservancy Districts are formed in conformance with the Water Conservancy Act . They are organized under procedures in state district courts and remain under their jurisdiction and are formed at the request of communities and are local instrumentalities of state government .

Water EfficiencyObtaining the benefits of water more efficiently, resulting in reduced demand for water . Sometimes called “end-use-efficiency” or “demand management .”

Water RevenuesRevenues generated through billing process from the delivery of water .

WorksDams, storage reservoirs, compensation and replacement reservoirs, canals, conduits, pipelines, tunnels, power plants, and any and all works, facilities, improvements, and property necessary or convenient for the supplying of water for domestic, irrigation, industrial and all other beneficial uses .

Working CapitalCurrent and restricted assets, less current liabilities other than current year principal payments or long-term debt .

52

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictAppropriation Resolution

53

Municipal Subdistrict, Northern Colorado Water Conservancy DistrictAppropriation Resolution

/s/ Bradley D. Wind

municipal subdistrict 2020 annual budget...municipal subdistrict, northern colorado water...

Documents