From The Durango Herald (Dale Rodebaugh):
[Jack Rogers, the city’s public works director] said the $3 million, 20-year loan the city needs would have an interest rate of about 2.5 percent. It beats the rate the city would get anywhere else, Rogers said. On the recommendation of a consultant, the city of Durango in 2005 asked the Colorado Water Resources and Power Development Authority to reserve a portion of A-LP water in its name. The city has put down $1 million as earnest money. The deposit leaves the city with a bill of $5 million to $5.5 million. A healthy water fund reserve makes it necessary to borrow only $3 million, leaving money for other water projects, participants said. Because the city has only a week’s reserve of water, 1,900 acre-feet of consumable water from the A-LP would be a comfortable backup for emergencies…
A water-rate increase for city residents will be necessary – but not immediately because of money in reserve.
More Animas-La Plata Project coverage here.