Two million bucks for Dry Gulch Reservoir property acquisition

From The Pagosa Springs Sun (Randi Pierce):

The San Juan Water Conservancy District (SJWCD) board discussed several aspects of its proposed Dry Gulch raw water storage project during its regular meeting Monday night, including loan nancing, a mill levy increase, contracts and new names for the project.

Among the decisions made at the meeting was approving a resolution allowing the district to apply for a $2 million loan to help acquire property needed for the project, as well as for preconstruc- tion expenses.

That loan, however, would be contingent upon the SJWCD successfully raising its mill levy to one mill during an upcoming election.

In introducing the topic to the board, chair Rod Profitt explained that he had already submitted the loan application to the Colo- rado Water Conservation Board (CWCB), but that the resolution would “essentially” formalize that application.

Profitt noted he would be appearing before the CWCB during that board’s meeting in May (to be held in Pagosa Springs) to see if the loan is approved, at which point the SJWCD would have to work on the mill levy increase being approved…

The resolution further states, “the costs to acquire the rest of the land needed for the reservoir basin and pre-construction expenses are expected to be $2,000,000.”

The 40-year loan, Proffitt explained during discussion, comes with a 2.75 percent interest rate, which mean debt-service pay- ments of about $96,129 per year.

One mill, he said in response to a question by board member Al Pfsiter, would raise about $213,000 per year, meaning the district would also have funding for other projects such as the stream management program…

The resolution passed 5-0, with board member Ray Finney absent from the meeting.