§ 4.04.020. Policy and purpose.

A.

The Town is the exclusive provider of water service within its municipal boundaries. The Town does not own or control sufficient proprietary water resources to provide water service to developing areas in the Town. Projections based on current zoning and development plans suggest that the Town will permit thousands of new service connections over the next several decades. Consequently, the Town requires the dedication of additional water rights to support the Town's acquisition and development of new water supplies as a condition to the right to obtain water service.

B.

Because other water supplies are not currently accessible to the Town, it has developed a water production system that is highly dependent on Denver Basin groundwater. Although Denver Basin groundwater is a reliable and accessible resource, it is a finite resource that is being mined by the Town and other regional water providers. Hydrological studies of the Denver Basin indicate that the cost of production will increase at an accelerating rate as the aquifers are drawn down. Eventually, production from the Denver Basin will cease to be economical. A prudent water dedication policy must provide for a dedication requirement that accounts for the projected decline in the yield from the Denver Basin aquifers.

C.

The Water Resources Strategic Master Plan adopted by the Town in 2006 and updated in 2010 (water plan) establishes a framework for imposition of user service charges and capital fees sufficient to enable the Town to eventually meet the bulk of system demand from sustainable, renewable water supplies, after developing appropriate water reclamation and reuse facilities. The water plan incorporates a rational methodology for placing on new development the direct future capital costs of acquiring and developing renewable water resources. The water plan does not burden new development with unrelated costs or impacts. The long-term transition from primary dependence on groundwater to renewable sources is necessary and inevitable, and will assure the long-term viability of the Town's water supply and the attendant preservation of public and private property values and investment.

D.

Accordingly, new connections to the municipal water system must be supported by a sufficient dedication of Denver Basin groundwater and the payment of a fee to fund the acquisition and development of the replacement renewable water supply. This policy is consistent with those existing annexation and development contracts which only address Denver Basin groundwater and do not provide for dedication of renewable water resources. Furthermore, the water resources funded by this fee are supplemental to the groundwater production system that is funded through the system development fees imposed under Chapter 13.12 of this Code.

(Ord. No. 2015-05 , § 1, 3-3-2015; Ord. 2011-21 §4, 2011; Ord. 2006-19 §1, 2006; Ord. 2006-12 §2, 2006; Ord. 2002-66 §1, 2002; Ord. 98-30 §1(part), 1998)