Question 7B
SHALL THE CENTRAL COLORADO WATER CONSERVANCY DISTRICT DEBT BE INCREASED UP TO $250 MILLION, WITH A MAXIMUM REPAYMENT COST OF UP TO $470 MILLION, AND SHALL DISTRICT TAXES BE INCREASED UP TO $18.7 MILLION ANNUALLY FOR THE PURPOSE OF DEVELOPING, ACQUIRING AND MANAGING RELIABLE WATER RESOURCES THROUGH DEBT FINANCING TO:
LESSEN DROUGHT IMPACT AND INCREASE WATER SUPPLIES NECESSARY TO SUPPORT AND MAINTAIN FAMILY FARMS AND AGRICULTURAL BUSINESSES THROUGH DEVELOPMENT OF WATER PROJECTS TO CAPTURE WATER DURING TIMES OF HIGH SUPPLY FOR USE DURING TIMES OF NEED;
PREVENT LOCAL FARM AND RANCH DRY-UPS AND KEEP WATER IN ADAMS, MORGAN AND WELD COUNTIES THROUGH THE ACQUISITION OF SENIOR WATER RIGHTS; AND
ACQUIRE, CONSTRUCT AND IMPROVE LONG-TERM WATER STORAGE RESERVOIRS AND OTHER FACILITIES TO MORE EFFICIENTLY STORE AND DELIVER WATER AVAILABLE TO THE DISTRICT;
SUCH DEBT TO CONSIST OF THE ISSUANCE AND PAYMENT OF BONDS OR SIMILAR LIMITED TAX OBLIGATIONS, WHICH DEBT SHALL BEAR INTEREST AT A MAXIMUM NET EFFECTIVE INTEREST RATE NOT TO EXCEED 6.0% PER ANNUM AND SHALL BE DATED AND SOLD AT SUCH TIME OR TIMES, AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND CONTAINING SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE BOARD OF DIRECTORS MAY DETERMINE; SHALL AD VALOREM PROPERTY TAXES BE LEVIED IN ANY YEAR AT A LIMITED MILL LEVY RATE NOT TO EXCEED 3 MILLS, EXCEPT AS PERMITTED IN SECTION 37-45-126 OF THE COLORADO REVISED STATUTES, AND IN SUCH AMOUNTS AS SET FORTH ABOVE AND SHALL THE DISTRICT BE AUTHORIZED TO ENCUMBER AND PLEDGE ANY OTHER REVENUES OF THE DISTRICT TO BE USED TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH BONDS AS THE SAME BECOME DUE AND TO FUND ANY RESERVES FOR THE PAYMENT THEREOF; AND SHALL ANY INVESTMENT EARNINGS (REGARDLESS OF AMOUNT) FROM SUCH TAX REVENUES AND FROM THE PROCEEDS OF SUCH BONDS CONSTITUTE A VOTER-APPROVED REVENUE CHANGE?
Frequently Asked Questions
What is Question 7B?
Question 7B is a $250 million bond for the Central Colorado Water Conservancy District. The funding would allow Central to acquire renewable, senior water rights and invest in reservoirs and other water infrastructure to help secure reliable water supplies for the region.
Why is Question 7B needed?
Water supplies that have supported agriculture in Adams, Morgan and Weld counties are under increasing pressure from drought, population growth and increasing municipal demand. Securing water is also becoming more difficult and expensive.
How would the bond funds be used?
Bond proceeds would be used to acquire renewable, senior water rights and develop additional reservoir storage and water infrastructure. These investments would help Central capture and store water when supplies are plentiful so it is available during drought and other times of need.
How much would Question 7B cost homeowners?
The bond would cost approximately $84 per year—or $7 per month—for a $500,000 home in the district. Approximately 70% of the district’s property tax revenue is currently generated by the oil and gas industry, significantly reducing the share carried by local homeowners.
How would Question 7B help local farmers and ranchers?
Reliable water supplies are essential to keeping farms and ranches operating. By securing water rights and expanding storage, Central would have additional tools to keep water available for agriculture, particularly during drought and other difficult water years.
Why is keeping water in the region important?
When agricultural water rights are sold and permanently transferred elsewhere, the impact goes beyond an individual farm. The region can lose productive farmland, agricultural jobs, economic activity and part of the agricultural heritage that defines these communities.
How serious is the long-term threat to agricultural water?
Colorado’s population is expected to approach 10 million by 2050, increasing competition for available water. The Colorado Water Plan estimates that 267,000 acres of irrigated farmland downstream of Denver could be dried up by 2050 to help meet growing municipal demands.
What has Central already done to protect local water supplies?
For more than 60 years, Central has developed a diverse water portfolio that includes senior water rights, 14 reservoirs, recharge ponds and water conveyance systems. These investments have helped farms and ranches continue operating through difficult water years.
Why make these investments now?
Reservoirs take years to plan and construct, while water rights become more valuable as demand increases. Waiting until the next drought could make securing water supplies more difficult and more expensive.
Are there safeguards for taxpayers?
Yes. Central is required to conduct an annual independent audit of the bond funds and make the results available to the public.