The PBOWW finished up the sale of the Columbine Ditch and approved a 3.2 percent rate hike this week. Here’s a report from Chris Woodka writing for The Pueblo Chieftain. From the article:
The 3.2-percent rate hike will raise a little more than $1 million to pay debt service on $23 million in bonds, said Seth Clayton, finance division manager. “We will be coming back in November for another increase to cover our normal operations,” Clayton told the board. Clayton estimated the total increase for 2010 would be about 8 to 9 percent, with another 6 to 8 percent in 2011. That’s lower than initial projections of 10 percent each year…
“Nobody in the community is in favor of a rate increase,” President Nick Gradisar said. “But the people I talk to are in favor of what we are doing on the Bessemer.” The bonds would be issued Oct. 22…
The Columbine sale would close Sept. 21. Columbine Ditch is on Fremont Pass 13 miles north of Leadville and brings water to the Arkansas River from the Eagle River basin. Climax needs the water because it lost a water court claim to Denver Water and plans to expand in the future, said Bud O’Hara, water resources division manager. The agreement also would keep Aurora from objecting in the eventual change of use case for the Bessemer Ditch shares, and would also take the Pueblo water board out of the change of diversion case associated with the Columbine. The Columbine water already is available for all uses under the water board’s decree, so it will not require a change of use decree…
The water board is now looking at 67 contracts for a total of 5,339 shares at $10,150 each, with another 10.5 shares pending on the Bessemer Ditch, Hamel said. There are about 20,000 shares on the ditch. The water board plans to spend about $60 million, and will begin closing contracts in September using funds already in the water development fund and from lease revenue.