Aurora: Potential water lease to Anadarko could target utility debt load


From The Aurora Sentinel (Sara Castellanos):

Houston-based Anadarko Petroleum Corp. is expected to purchase $9.5 million worth of “used” water from Aurora for its oil and gas drilling operations across the state, pending Aurora City Council approval July 9.

Members of council’s Management and Finance committee said the revenues should be used to partially pay off debt from the construction of Prairie Waters, a $650 million project that was completed in 2010 to ensure the city’s residents had enough water during droughts. The city borrowed more than $540 million and raised water rates to pay for the project.

A second option would have been to use the revenue to reimburse taxpayers for helping to foot the bill to construct the project. But committee members decided that reimbursement wouldn’t amount to much anyway. According to Jason Batchelor, the city’s finance director, the credit to the average residential rate payer would be about 95 cents a month.

Councilman Bob LeGare said it makes better financial sense to put the money toward the Prairie Waters project. “Everyone understands paying down your (debt) early,” he said.

More Aurora coverage here and here.

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