Durango Looks to Finance Lake Nighthorse Water

The City of Durango has only a week’s reserve of water. Therefore, in 2005, they requested that the Colorado Water Resources and Power Development Authority (CWRPDA) reserve a portion of Animas-La Plata Project water in its name. This 1,900 acre-feet of consumable water (depletion) from the Project and Lake Nighthorse would be a comfortable backup for emergencies. The City put down $1 million as earnest money. The deposit leaves the city with a balance of $5 million to $5.5 million. Their water reserve fund makes it necessary to borrow $3 million. Jack Rogers, the City of Durango’s Public Works Director, said the $3 million, 20-year loan the City needs would have an interest rate of about 2.5 percent if borrowed from the CWRPDA. This, he said, certainly beats the rate the City would get anywhere else.