§ 99-99-210 — Projects authorized; financing; excess water

Wyoming § 99-99-210

• Jurisdiction: Wyoming
• Title 99: Water Projects
• Ch. 99: 9

Text

(a) The following construction is authorized within the
Stage II project:
(i) Enlargement of Rob Roy Reservoir, estimated to
cost eighteen million dollars ($18,000,000.00);
(ii) Little Snake River collection system, estimated
to cost twenty-five million dollars ($25,000,000.00);
(iii) Enlargement of Hog Park Reservoir, estimated to
cost thirteen million dollars ($13,000,000.00);
(iv) Hog Park to Encampment River pipeline, estimated
to cost two million dollars ($2,000,000.00).
(b) The projects enumerated in subsection (a) of this
section shall be financed as follows:
(i) The city of Cheyenne shall finance the total cost
of the project except for the portion funded by the state under
paragraph (ii) of this subsection;
(ii) The state shall finance twenty million dollars
($20,000,000.00) of the total cost of the projects under
paragraphs (a)(i), (ii), (iii) and (iv) of this section as
provided by subsection (d) of this section.
(c) The state loan and investment board with the advice of
the director of the department of commerce is authorized to loan
not more than thirty-five million three hundred sixty thousand
nine hundred sixty-five dollars ($35,360,965.00) from the
permanent mineral trust fund to the city of Cheyenne or as much
thereof as deemed necessary by the department of commerce to
design and construct the portion of Stage II of the Little Snake
River water management project provided by subsection (a) of
this section. The revenue shall not be advanced until:
(i) The qualified electors of the city of Cheyenne
approve creation of debt totaling the amount authorized by this
subsection and approve the pledging of the revenue from the
operation of the water project as the primary source of
repayment of the debt as evidenced by the issuance of general
obligation bonds to the state of Wyoming;
(ii) The city of Cheyenne submits a financing plan
designed to reimburse the state of Wyoming subject to the
following specific conditions:
(A) The city will pay interest charges computed
at a rate which will be no more than one-half percent (.5%)
below the rate for which the city of Cheyenne could sell the
general obligation bonds on the open market, and shall not be
less than five percent (5%) per annum. This rate determination
shall be made by the state loan and investment board;
(B) Principal payments may be deferred on
request of the city with the approval of the state loan and
investment board but not beyond the original final payment date
set by the state loan and investment board;
(C) The city shall apply available revenue from
secondary sources of revenue, designated within the financing
plan, to the repayment of the loan.
(iii) Repealed by Laws 1986, ch. 114, § 3.
(iv) A rate study is conducted for the city by a
professional municipal finance and rate firm;
(v) The city agrees to mortgage to the state all
facilities constructed with funds provided by the state loan and
investment board and assign all easements, rights-of-way, water
rights and permits as approved by the state engineer appurtenant
thereto, in such form and to such extent as is required by the
Wyoming attorney general. The conveyances shall be held in
escrow. The state engineer shall not change the priority date of
the water rights and permits as a result of this conveyance or
escrow. Upon payment in full of the loan to the state of
Wyoming, the conveyances shall be returned to the city of
Cheyenne.
(vi) Repealed by Laws 1986, ch. 114, § 3.
(d) The state treasurer shall pay not to exceed twenty
million dollars ($20,000,000.00) from the Wyoming water
development account provided by W.S. 39-14-111(j) to the city of
Cheyenne as deemed necessary by the department of commerce as
provided by paragraph (b)(ii) of this section. The payments are
grants and not loans to the city of Cheyenne and shall not:
(i) Be disbursed until the election pursuant to W.S.
41-2-210(c) is held and the indebtedness approved by the
electors;
(ii) Deplete the balance remaining within the Wyoming
water development account to less than ten million dollars
($10,000,000.00) for projects listed within W.S. 41-2-210(a);
(iii) Be disbursed until the city of Cheyenne, in
consultation with the state loan and investment board and the
department of commerce, develops a proposed financing plan for
funding the completion of the Stage II water project as defined
in W.S. 41-2-204(a)(ii) and (iii). Copies of the plan shall be
mailed to the governor and members of the legislature. This
provision shall not be construed as requiring any approvals of
such a financing plan.
(e) All water in excess of the needs of the city of
Cheyenne within the service area of the city produced by Stage
II of the project shall be assigned to and marketed by the
Wyoming water development commission for as long as the excess
water is available or until July 1, 2036, whichever is earlier,
or until the Wyoming water development commission determines
that the excess water is no longer needed because the water has
not been contracted for during the previous ten (10) years. Upon
a determination by the commission that the excess water is not
needed and has not been contracted for during the previous ten
(10) years, the commission may renegotiate or seek to terminate
any existing contract with the city of Cheyenne entered into
pursuant to this subsection and subsection (g) of this section.
Upon termination of any existing contract entered into pursuant
to this subsection and subsection (g) of this section, the
excess water shall no longer be assigned to and marketed by the
Wyoming water development commission. The first option to
purchase not more than eighty percent (80%) of the surplus water
shall be extended to cities, towns and special districts within
the North Platte basin for the benefit of their inhabitants at a
negotiated cost. Sales contracts entered into by the commission
shall be administered by the commission. To optimize the amount
of excess Stage II water available for marketing without
jeopardizing water supplies necessary to meet the city of
Cheyenne's municipal needs, the city shall develop a Stage II
management plan acceptable to the water development commission
and the state engineer. The board shall transfer thirty-seven
and three-tenths percent (37.3%) of the proceeds from the sale
of excess Stage II water to the city of Cheyenne which it shall
apply to the repayment of the loan provided by subsection (c) of
this section until the loan is repaid.
(f) Repealed by Laws 1986, ch. 114, § 3.
(g) All effluent from the city of Cheyenne's sewage
treatment plant resulting from Stage II municipal water Cheyenne
develops the ability and the need to recycle or use that water
for municipal purposes. Sale contracts entered into by the
commission shall be administered by the commission. The board
shall provide thirty-seven and three-tenths percent (37.3%) of
the proceeds of the sale of Stage II effluent to the city of
Cheyenne for its use. The water development commission may
withdraw up to sixty-two and seven-tenths percent (62.7%) of the
Stage II effluent from sale and the city of Cheyenne may
withdraw up to thirty-seven and three-tenths percent (37.3%) of
the Stage II effluent from sale. If either the city or the
commission withdraws any portion of its share of Stage II
effluent from the market its share of revenues generated by sale
of the remainder shall be reduced proportionately. The sale or
withdrawal from sale of Stage II effluent shall not be
accomplished without consultation among the commission, the city
and the state engineer. Because the effluent affected hereby is
a by-product of the Stage II dams and pipeline projects, there
are no restrictions on the city of Cheyenne's use of its share
of the revenues generated by the sale of Stage II effluent.
(h) Any revenues to the state from the lease, sale,
assignment or transfer of excess Stage II water or Stage II
effluent as provided in subsections (e) and (g) of this section
shall be deposited in the Wyoming water development account
funded by revenues under water development account I.
(j) In addition to the grant provided by W.S.
41-2-210(b)(ii) and (d), the state of Wyoming shall grant to the
city of Cheyenne from the Wyoming water development account
funded by revenues under water development account I not to
exceed three million dollars ($3,000,000.00) to be used to pay
fifty percent (50%) of excess project expenses for projects
designated in subsection (a) of this section, provided:
(i) Payments shall be made only for project expenses
in excess of the combined fifty-five million three hundred sixty
thousand nine hundred sixty-five dollar ($55,360,965.00) grant
and loan authorized by W.S. 41-2-210(b)(ii), (c) and (d);
(ii) The city shall submit all invoices for payment
to the Wyoming water development commission for approval. The
commission shall, upon review and approval of the invoices, make
payments directly to the city for fifty percent (50%) of the
total invoice amount;
(iii) Payments under this subsection are grants and
not loans to the city of Cheyenne; and
(iv) Nothing in this subsection shall be deemed to
alter or amend any provision of W.S. 41-2-210(e), (g) or (h).
(Laws 1980, Ch. 72, § 1; 1982, Ch. 60, § 1; 1985, Ch. 228, § 2;
1986, Ch. 114, §§ 2, 3; 1989, Ch. 268, § 5, 1991, Ch. 68, § 1;
1998, Ch. 5, § 2; Ch. 6, § 3; Ch. 13, § 1; 2000, Ch. 97, § 3;
Renumbered from 41-2-210 by Laws 2009, Ch. 168, § 401; 2021, Ch.
12, § 2.)