Monetary Mitigation Fund
Project Criteria and Requirements
Condition 6 of the Pueblo County 1041 permit for the Southern Delivery System (SDS) stipulates that in order to mitigate the impacts of SDS to Fountain Creek in Pueblo County, Colorado Springs Utilities will pay fifty million dollars ($50,000,000) over 5 years to the Fountain Creek Watershed, Flood Control and Greenway District (District). Condition 6 further states that the District may use these funds provided by Colorado Springs Utilities “for one or more new projects in the Fountain Creek Watershed between Colorado Springs and the Arkansas River confluence in Pueblo that create a significant and not merely incidental benefit to Fountain Creek within Pueblo County for improvement of water quality, for flood control, or for prevention of erosion and sedimentation” (Pueblo County SDS 1041 Permit).
The Monetary Mitigation Fund Advisory Committee (MMFAC) is convened by the District to conduct technical investigations and analysis on facilities and projects for which Monetary Mitigation funds (MMF) provided through Condition 6 of the Pueblo County SDS 1041 Permit will be used. As such the Committee is tasked with developing a 10-year Capital Improvements Plan (CIP) to ensure MMF are allocated consistent with the Condition 6 terms in the Pueblo County SDS 1041 Permit. This CIP aims to capture the recommended projects for the 2018 budget year and serve as the foundation for further development of the 10-year CIP.
Colorado Springs Utilities shall make payments annually in equal installments of ten million dollars ($10,000,000) on January 15th beginning the year following completion and commencement of water deliveries through the SDS Pipeline from Pueblo Reservoir to Colorado Springs, less any advance payments, plus any accrued indexed amount for each of the four years thereafter. The first payment was made to the District on May 19, 2016, with the second payment made on January 15, 2017 and the third payment made on January 12, 2018.
Further, the committee shall prepare recommendations regarding the need for, and use of, additional funding for the District to continue implementing flood, water quality, erosion, and sediment control projects beyond MMF.