2014 northern water comprehensive annual financial report

Comprehensive Annual Financial Report

Northern Water

Northern Colorado Water Conservancy DistrictFiscal year ended September 30, 2014 2014

Comprehensive Annual Financial ReportYear ended September 30, 2014

Prepared by: Financial Services Department

Northern Colorado Water Conservancy DistrictBerthoud, Colorado

Northern Water Headquarters in Berthoud, Colorado

Northern Water

Comprehensive Annual Financial ReportSeptember 30, 2014

INTRODUCTORY Page Transmittal Letter i Board of Directors iv Organizational Chart and Management v Certificate of Achievement vi

FINANCIAL

Independent Auditors’ Report 1

Management’s Discussion and Analysis 4

Basic Financial Statements Northern Water Proprietary Funds Financial Statements Statement of Net Position 10 Statement of Revenues, Expenses and Changes in Net Position 13 Statement of Cash Flows 14 Northern Water Fiduciary Fund Pension Trust Fund Financial Statements Statement of Fiduciary Net Position 16 Statement of Changes in Fiduciary Net Position 17 Notes to Financial Statements 18

Required Supplementary Information Northern Water Fiduciary Fund Pension Trust Fund Schedule of Funding Progress 33

Supplementary Information Northern Water Enterprise Funds, Schedule of Revenues and Expenses, Budget to Actual District 36 Southern Water Supply Project 37 Pleasant Valley Pipeline 38 Northern Integrated Supply Project 39 Hydropower 40

STATISTICAL INFORMATION

Table of Contents 41

Northern Water Facilities, Colorado-Big Thompson Project Facilities and Northern Water Boundaries 42

Financial Trends 44 These schedules contain trend information to help the reader understand how Northern Water’s financial performance has changed over time.

Revenue Capacity 49 These schedules on property taxes, assessments and charges for services contain information to help the reader assess Northern Water’s primary revenue sources.

Debt Capacity 62 This schedule presents information to help the reader assess the affordability of Northern Water’s current levels of outstanding debt and its ability to issue additional debt in the future.

Demographic and Economic Information 64 These schedules offer demographic and economic indicators to help the reader understand the environment within which Northern Water’s financial activities take place.

Operating Information 70 These schedules contain information about Northern Water’s operations and resources to help the reader understand how Northern Water’s financial information relates to the services it provides and the activities it performs.

Table of Contents

Weather Station and Conservation Garden at Northern Water

Northern Water i

March 5, 2015

To the Board of Directors of Northern Water

The comprehensive annual financial report of the Northern Colorado Water Conservancy District (Northern Water) as of and for the year ended September 30, 2014, is submitted herewith.

Management of Northern Water assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Internal controls are designed to provide Northern Water’s management with reasonable (but not absolute) assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the overall reliability of the financial records for preparing financial statements and for maintaining accountability and control over Northern Water’s assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the evaluation of costs and benefitsrequires estimates and judgments by management.

CliftonLarsonAllen LLP, a certified public accounting and consulting firm, has issued an unmodified “clean” opinion on the Northern Water financial statements for the year ended September 30, 2014. The independent auditors’ report is located on page 1.

Management’s Discussion and Analysis, located on pages 4 - 9 of this report, provides a narrative introduction, overview and analysis of the basic financial statements. Management’s Discussion and Analysis complements this letter of transmittal and it should be read inconjunction with this letter.

Northern Water adopts a final budget for the next fiscal year by the end of the current fiscal year. This annual budget serves as a foundation forthe government’s financial planning and control. Appropriations are established to record the current year’s fiscal requirements. Portions of these appropriations are set aside as purchase orders and/or contracts are awarded. No commitment is authorized, nor any expenditure incurred, until it is determined that adequate appropriation balances exist for that purpose. To facilitate this determination, Northern Water’s accounting records are delineated by function and activity.

Profile of the GovernmentNorthern Water was organized in 1937 to partner with the U.S. Bureau of Reclamation (Reclamation) to build, operate and maintain the Colorado-Big Thompson Project (C-BT). The C-BT captures runoff from the headwaters of the Colorado River on the west slope of the Rocky Mountains and conveys it to the east slope via the 13.1 mile Alva B. Adams Tunnel under the Continental Divide. C-BT water supplements native water supplies, helping to irrigate approximately 650,000 acres of farmland and augment raw water supplies for 33 cities and towns, 27 rural domestic water districts and 7 industrial users in 8 Northern

Colorado counties. The project became operational in 1957 and today delivers on average more than 200,000 acre feet of untreated water annually.

Northern Water collects water assessments from water allotment contract holders whether or not they take delivery of water. In addition, in accordance with its Repayment Contract with Reclamation, Northern Water collects a 1.00 mill levy property tax on real property located within its boundaries. These taxes are assessed by the individual counties and submitted to Northern Water. In addition to operating and maintaining the C-BT, Northern Water engages in a number of other water-related activities including monitoring weather data, conducting water quality studies and tracking and forecasting streamflows. Northern Water provides water resource and conservation information to the public through water festivals, water users’ meetings, its website and its Conservation Gardens to promote water efficient behavior and conservation awareness.

In the 1990s, the Southern Water Supply Project pipeline was constructed to provide further East Slope conveyance of existing C-BT and Windy Gap Project water supplies. (The Windy Gap Project was developed by the Municipal Subdistrict, Northern Colorado Water Conservancy District [Subdistrict], a special-purpose government established pursuant to the Water Conservancy Act.) The Southern Water Supply Pipeline was followed by the Pleasant Valley Pipeline project, an 8.5 mile pipeline that increases water reliability and flexibility for certain participants on the East Slope. Both of these projects are operated and maintained by Northern Water for the benefit of project participants who fully funded the pipelines’ construction and continue to fund their operations.

In 2011, the Northern Water Hydropower Water Activity Enterprise (Hydropower) was established to construct and operate small hydropower facilities including the Robert V. Trout Hydropower Plant (R.V. Trout Hydropower), a small hydropower facility at Carter Lake, a reservoir of the C-BT. The hydropower facility became operational in 2012 and generates between 7 - 10 million kilowatt-hours of power annually.

See discussion of development of the Southern Water Supply Project II, the Northern Integrated Supply Project and the Granby Dam Hydropower Project under Major Initiatives below.

Local EconomyNorthern Water is located in Northern Colorado, which has the state’s largest concentration of economic activity. The region is providing opportunities due to its broad mix of industries: agriculture, tourism, recreation, energy, manufacturing, research, government and commercial interests. Several universities are located in the boundaries of Northern Water including Colorado State University, the University of Colorado, Boulder, and the University of Northern Colorado, as well as several community colleges.

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The Colorado Economic Outlook, published in December 2014 by the Colorado Office of State Planning and Budgeting, indicates that unemployment rates have fallen significantly in Colorado, particularly along the northern Front Range, driven primarily by the information and technology-related industries. While construction and real estate activity is expanding, higher housing costs are dampening demand.

Energy production has also increased income and employment to their current levels. Weld County, in particular, produces almost 80 percent of the state’s oil output and accounts for over 90 percent of drilling.

The Economic Outlook projects that Colorado’s economy will continue to show momentum and growth at its recent pace. While the impact of lower oil prices on Colorado’s oil and gas industry remains unclear, historically lower prices (and resulting gasoline prices) are likely to have positive impacts on consumer spending, though a wider and more abrupt pull back in oil production activities than expected could weaken the state’s economy.

Personal income for Colorado is expected to grow 5.8 percent to $49,000 in 2014 and 5.9 percent to $51,000 in 2015, compared to the national averages of 4.3 percent and 5.0 percent, respectively. The state’s average population growth rate from 2008 to 2013 was approximately 1.5 percent and is expected to grow 1.6 percent and reach 5.4 million in 2014. Colorado’s unemployment rate is forecasted to average 5.3 percent in 2014 and 4.0 percent in 2015, compared to the national averages of 6.2 percent and 5.5 percent, respectively. The Denver-Boulder-Greeley Consumer Price Index increased 2.8 percent in 2013 and will increase 2.8 percent in 2014, largely driven by higher housing costs.

Major Initiatives and Long-Term Financial PlanningSouthern Water Supply Project IISouthern Water Supply Project II is a proposed 20-mile pipeline project that will supply C-BT and Windy Gap Project water from Carter Lake Reservoir to the City of Boulder, Left Hand Water District, and Longs Peak Water District. The three project participants are paying100 percent of the approximate $45 million project cost. Design and right-of-way acquisition activities are underway. Construction is planned for 2018. Southern Water Supply Project II is an extension of the original 110-mile Southern Water Supply Project completed in 1999 under the Southern Water Supply Project Water Activity Enterprise (SWSP). Northern Integrated Supply ProjectNorthern Water established the Northern Integrated Supply Project Water Activity Enterprise (NISP) to develop the Northern Integrated Supply Project, a proposed water storage and distribution system that will supply water to 15 participants located along Northern Colorado’s Front Range. The project will add 40,000 acre feet of new water supplies and more than 200,000 acre feet of storage capacity with the construction of Glade and Galeton Reservoirs, two pump stations and a network of related pipelines. The Northern Integrated Supply Project participants are responsible for funding the entire project, which is expected to cost approximately $500 million. At present, the project is in the environmental permitting stage. A final Environmental Impact Statement from the US Army Corps of Engineers is anticipated in 2016 with a final permit and Record of Decision following in 2017.

Granby Hydropower ProjectNorthern Water has approved construction of the Granby Hydropower Project, a small hydropower facility at the C-BT Granby Dam. The facility is expected to generate 5 million kwh of renewable energy per year to be sold into a local power delivery system. The Granby Hydropower Project is projected to cost $5 million and will be funded by a loan from the Colorado Water Conservation Board (CWCB). Construction is expected to start in 2015 with the project operational in 2016.

Colorado Water Conservation Board Flood Recovery Grant ProgramNorthern Water is acting as fiscal administrator of the $2,555,000 Colorado Water Conservation Board Flood Recovery Grant whereby financial assistance is provided to water providers and users impacted by the September 2013 flood in the South Platte River Basin.

Cost of Service Rate StudyIn 2014, Northern Water engaged a consultant to complete a Cost of Service Rate Study, the purpose of which was to determine rate adjustments that may be needed to meet current and projected Northern Water operating and capital cost requirements as well as maintaining adequate reserves. Based on the study’s recommendations, Northern Water will increase its irrigation open-rate assessments based on a cost-of-service calculation and increase its other open-rate assessments (municipal, industrial and multipurpose) to a rate that recovers remaining net revenue requirements. The study recommended a 9 percent overall open-rate adjustment for fiscal year 2015, which was approved by the Board. In addition, the Board passed a forward guidance resolution to implement a two-year step increase in rates for fiscal years 2016 and 2017. The estimated range of open-rate irrigation assessments for fiscal years 2016 and 2017 is $16.60 - $17.60 and $25.50 - $28.50, respectively. The estimated range of municipal, industrial and multipurpose assessments for fiscal years 2016 and 2017 is $35.90 - $39.10 and $42.20 - $50.20, respectively. Northern Water intends to update the water assessment rate model provided by the Study annually to refine water assessment rate projections in the future.

Water YearThe 2014 water year brought abundant moisture to the Northern Water service area. The same water that caused extensive flood damage in September 2013 was also a source of supply and recharge for the area. Winter saw snowpack accumulations for the Upper Colorado and South Platte River Basins reaching 134 percent and 147 percent of normal, respectively. The runoff into Lake Granby filled the reservoir completely and resulted in spills of 9,000 acre feet to the Colorado River for the first time since 2011. Total C-BT spills added up to 26,000 acre feet. Due to the plentiful supply of water from East Slope tributary sources and a wetter than average spring and summer season, C-BT water deliveries were lower than normal and overall C-BT storage reached record levels. Municipal/industrial deliveries exceeded agricultural deliveries in 2014, continuing a trend started in 2013.

Water QualityWater quality has become increasingly important to Northern Water as the use of C-BT water shifts from agricultural irrigation to municipal needs. Northern Water provides water quality monitoring and studies through its water quality staff supplemented by a team of six field service personnel. The water quality department has

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been instrumental in providing support for the Northern Integrated Supply Project and the Subdistrict’s Windy Gap Firming Project and coordinates with numerous third party organizations to ensure Northern Water continues to meet its quality commitments to the region and maintain compliance with regulatory agencies.

Board of DirectorsThe Northern Water Board of Directors is pleased to welcome Dale Trowbridge to its ranks. Director Trowbridge represents Weld County, replacing Director Jerry Winters. Management gives its sincere appreciation to Director Winters for his 19 years of service on the Board.

Financial PoliciesNorthern Water has followed consistent policies in the preparation of its financial statements including the basis of accounting, valuation of fund assets and maintenance of reserve balances. These policies arefurther detailed in Note 1 to the financial statements.

Awards and AcknowledgementsThe Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Northern Water for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2013. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting.Northern Water has received this award each year since 1987.

In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which must satisfy both generally accepted accounting principles and applicablelegal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe the Northern Water CAFR for the year ended September 30, 2014, continues to conform to the Certificate ofAchievement Program requirements, and we are submitting it to GFOAto determine its eligibility for another certificate.

The preparation of this report on a timely basis would not have been possible without the efficient and dedicated services of Northern Waterstaff. In particular we would like to recognize the efforts of thefollowing individuals:

Zach Allen Katie Melander Scott Bartling Andy Pineda Carl Brouwer Greg Silkensen Veronica Gomez Judy Skram, CPA Joshua Hill Sarah Smith Colleen Krabbenhoft Bernice Weber Mary Krakow

In closing, we would like to recognize the leadership of the Board of Directors of Northern Water for its unfailing support for maintaining the highest standards of professionalism in the management of Northern Water finances.

Sincerely,

John Budde, CPAManagerFinancial Services Department

Donald C. Carlson, P.E. Treasurer,Northern Colorado Water Conservancy District

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Board of Directors(1)

Mike Applegate, PresidentEngineerDirector since September 28, 1991Term expires September 28, 2015Larimer CountyCommittees: 1,2,3,4,5,6

Kenton Brunner, Vice PresidentRetired Farmer/Cattle FeederDirector since March 14, 1994Term expires September 28, 2018Weld CountyCommittees: 2,5,6

Sue Ellen HarrisonAttorneyDirector since September 28, 2009Term expires September 28, 2018Boulder CountyCommittees: 3,4,6

Les WilliamsRetired BusinessmanDirector since September 28, 1989Term expires September 28, 2017Boulder CountyCommittees: 1,5,6

Dennis YanchunasSecurities BrokerDirector since August 20, 2010Term expires September 28, 2016Boulder CountyCommittees: 1,2,5,6

Bill EmslieElectrical Engineer and FarmerDirector since September 28, 2005Term expires September 28, 2017Larimer CountyCommittees: 2,3,5,6

Bill BrownAttorneyDirector since September 28, 1992Term expires September 28, 2016Larimer CountyCommittees: 3,4,5,6

Don MagnusonFormer Ditch Company General Manager and Agricultural EnterprisesDirector since September 28, 2004Term expires September 28, 2016Weld CountyCommittees: 1,3,4,6

Dale TrowbridgeDitch Company General ManagerDirector since August 15, 2014Term expires September 28, 2015Weld CountyCommittees: 1,2,3,4,5,6

John RuschWater Resource ConsultantDirector since April 12, 2002Term expires September 28, 2017Morgan/Washington CountiesCommittees: 4,6

Brad StrombergerFarmerDirector since September 28, 2010Term expires September 28, 2018Logan CountyCommittees: 3,4,6

Rob McClaryFarmerDirector since September 28, 2011Term expires September 28, 2015Sedgwick CountyCommittees: 2,6

Committees1 Audit, 2 Finance, 3 Legislative, 4 Legal, 5 Employee Benefits & Retirement, 6 Planning

(1) Effective October 1, 2014.

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Organizational Chart and Management

Don Carlson, P.E.Assistant

General ManagerOperations

Alan Berryman, P.E.Assistant

General ManagerEngineering

Eric W. Wilkinson, P.E.General Manager

Bradley D. Wind, P.E.Deputy Manager

Operations

Je� Drager, P.E.Deputy ManagerEngineering

OperationsDepartments

AdministrativeDepartments

EngineeringDepartments

– Collection

– Distribution

– Facilities & Equipment

– Information Technology

– Instrumentation Control & Electrical Engineering

– Human Resources & Administrative Services

– Financial Services

– Communications & Records

– Project Management

– Water Resources

– Water Quality

– Field Services

– Irrigation Management

– South Platte Special Projects

– Emergency & Security / Real Estate

General Public

Board of Directors Legal Counsel

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Certificate of Achievement

Northern Water 1

INDEPENDENT AUDITORS' REPORT

Board of Directors Northern Colorado Water Conservancy District Berthoud, Colorado

Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities, each major fund, and the aggregate remaining fund information of Northern Colorado Water Conservancy District, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities, each major fund, and the aggregate remaining fund information of Northern Colorado Water Conservancy District as of September 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and pension information on pages 4-9 and 33 be presented to supplement the

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CliftonLarsonAllen LLP CLAconnect.com

Independent Auditors’ Report

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Board of Directors Northern Colorado Water Conservancy District

basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information Our audit for the year ended September 30, 2014, was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Northern Colorado Water Conservancy District’s basic financial statements. The budgetary schedules listed in the table of contents for the year ended September 30, 2014 are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The budgetary schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended September 30, 2014, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole for the year ended September 30, 2014.

We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of Northern Colorado Water Conservancy District as of and for the year ended September 30, 2013, and have issued our report thereon dated February 21, 2014, which contained unmodified opinions on the respective financial statements of the business-type activities, each major fund, and the aggregate remaining fund information. The budgetary schedules for the year ended September 30, 2013 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounts and other records used to prepare the 2013 financial statements. The budgetary schedules have been subjected to the auditing procedures applied in the audit of the 2013 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounts and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules are fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended September 30, 2013.

The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

a CliftonLarsonAllen LLP Greenwood Village, Colorado March 5, 2015

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Management’s Discussion and Analysis

This Management’s Discussion and Analysis presents a narrative overview of the financial activities of the Northern Colorado Water Conservancy District (Northern Water) for the fiscal year ended September 30, 2014. It should be considered in conjunction with the additional information furnished in the Transmittal Letter (page i).

OVERVIEW OF THE FINANCIAL STATEMENTSThe Northern Water basic financial statements consist of enterprise fund financial statements used to report the business-type activities of the government, fiduciary fund financial statements reporting the transactions of the Northern Water defined benefit Group Pension Plan, and accompanying Notes to Financial Statements. This report also contains required supplementary information, supplementary information and statistical information in addition to the basic financial statements. The Management’s Discussion and Analysis includes prior year data to enable the reader to make comparisons.

The enterprise fund financial statements include the following:

Statement of Net Position - reports Northern Water’s current and noncurrent financial resources, capital assets, current and long-term obligations. The difference between assets and liabilities is reported as net position (pages 10-11).

Statement of Revenues, Expenses and Changes in Net Position - reports Northern Water’s operating and nonoperating revenues by major sources, operating and nonoperating expenses and capital contributions. The statement presents how the government’s net position has changed during the fiscal year (page 13).

Statement of Cash Flows - reports Northern Water’s cash flows from operating activities, noncapital, capital and capital-related financing activities, and investing activities (pages 14-15).

Statements of Fiduciary Net Position and Changes in Fiduciary NetPosition - report the net position held in trust for the benefit of participants in the Northern Water defined benefit Group Pension Plan (Pension Plan) and the change in its net position for the year (pages 16 - 17). The net position of the Pension Plan is not reflected as part of the Northern Water enterprise funds’ net position because those resources are not available to support Northern Water operations. Required information concerning Northern Water’s progress toward funding its obligation to provide the benefits of the Pension Plan can be found in the Required Supplemental Information (page 33).

Notes to Financial Statements - provide further explanations and details that are essential to a full understanding of the information provided in the financial statements described above (pages 18-29).

HIGHLIGHTS

• Construction of the $5 million Granby Hydropower Plant and related loan agreement have been approved by the Board. The facility is expected to be operational in 2016.

• Northern Water engaged a consultant to complete a Cost of Service Rate Study. The study recommended an increase in open-rate assessments of 9 percent in 2015 and a 2-year step increase beginning in 2016.

• Northern Water is acting as fiscal administrator for a $2,555,000 Colorado Water Conservation Board Flood Recovery Grant to provide financial assistance to water providers and users impacted by the September 2013 flood.

• In 2014 Northern Water invested substantial resources in rehabilitation work relating to damage from the September 2013 flood. For the first time in its history, Northern Water applied for Federal Emergency Management Agency (FEMA) reimbursement funding. FEMA grant funds have been received to assist with a portion of these costs and additional grant fund requests are in process. Funding is “cost-shared” with a Federal share of no less than 75 percent of eligible costs and a State of Colorado share of no less than 12.5 percent.

• Development of the Southern Water Supply Project II continues with right-of-way acquisition activity. Construction is planned for 2018.

• The Northern Integrated Supply Project is pursuing its environmental permitting efforts. Final permitting is expected in 2016/2017.

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FINANCIAL ANALYSIS

STATEMENT OF NET POSITION(condensed) (thousands)September 30,

Assets Current assets Cash, cash equivalents and investments Other current assets Noncurrent restricted cash and cash equivalents Interfund loan receivable Capital assets, net of accumulated depreciation

Assets

Liabilities Current liabilities Long-term debt, net of current maturities Interfund loan payable, net of current maturity

Liabilities

Net position Net investment in capital assets Restricted net position Unrestricted net positon

Net position

2013

$ 30,716 16,498 2,514 4,507 187,358

241,593

7,344 14,687 4,507

26,538

171,456 3,741 39,858

$ 215,055

The largest portion of Northern Water’s net position reflects its net investment in capital assets including land and water rights, water facilities related to the Southern Water Supply Project and the Pleasant Valley Pipeline, the R.V. Trout Hydropower facility, Northern Water headquarters buildings and improvements and accumulated costs for projects still in the development stage and not yet operational. Restricted net position consists primarily of reserves required by debt agreements or other external contractual arrangements (Note 8). The remaining balance of Northern Water’s net position is unrestricted and may be used to meet Northern Water’s ongoing obligations to creditors. The increase in net position of $4.8 million indicates an improved financial position. The majority of Northern Water’s liabilities are debt obligations of which Certificates of Participation made up $8.4 million at year end 2014. Liabilities decreased $2.7 million primarily due to the 2014 debt principal payments and payment of an obligation relating to a perpetual water delivery agreement.

REVENUES

Assessments are from water allotment contract holders of the 310,000 acre-foot units of C-BT water and from operating project participants (Southern Water Supply Project and Pleasant Valley Pipeline). Water assessments for the Northern Water District Enterprise (District) Fund are based on units held and are independent of actual water deliveries. The 2014 C-BT municipal and industrial water assessment open rates increased 5.9 percent from $26.44 in 2013 to $28.00 per acre-foot unit in 2014. Irrigation water assessment open rates increased 1.4 percent from $9.86 to $10.00 per acre-foot unit.

Charges for services consist of revenues from providing operations and maintenance services to Reclamation, Northern Water enterprises and the Subdistrict. Energy revenue is generated by the use of water turbines. Differences in energy revenue from year to year are the result of increases or decreases in water flows due to weather conditions and water demands. The decrease in energy revenue in the current year reflects the abundant moisture and resulting lower water demand in 2014.

In 2014 other operating revenues decreased due to the 2013 balance including $8.9 million in revenue from participants in a perpetual water delivery agreement. Generally, other operating revenues consist primarily of carriage revenue from the Subdistrict’s use of the C-BT for water conveyance and storage.

Nonoperating property and specific ownership taxes consist primarily of the 1.00 mill levy voter-approved property tax. The District has maintained the same millage rate since 1957. Intergovernmental and other nonoperating revenues increased in 2014 due to receipt of CWCB Flood Recovery Grant Proceeds, FEMA grant revenue relating to recovery efforts from the September 2013 flood, and net proceeds from the sale of forfeited C-BT units.

2014

$ 41,754 8,959 2,516 4,309 186,209

243,747

6,223 13,315 4,309

23,847

171,634 3,120 45,146

$ 219,900

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REVENUES (thousands)Years ended September 30,

Operating revenues Assessments Charges for services Energy revenue Other operating revenues

Operating revenues

Nonoperating revenues Property and specific ownership taxes Earnings on investments Use of right of way Intergovernmental Other nonoperating revenues, net

Nonoperating revenues

Revenues

2014

$ 7,876 4,658 480 1,837

14,851

15,569 208 - 1,962 1,028

18,767

$ 33,618

2013

$ 7,344 5,133 625 10,623

23,725

15,218 196 906 - 236

16,556

$ 40,281

2014 Revenues

Assessments

Charges for services

Energy revenue

Other operating revenues

Property & specific ownership taxes

Earnings on investments

Other nonoperating revenues, net

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EXPENSES (thousands)Years ended September 30,

Operating expenses Operations and maintenance Administrative services Engineering services Depreciation

Operating expenses

Nonoperating expenses Interest expense Intergovernmental subgrantee payments Participant gain on use of right of way Refund of contributed capital

Nonoperating expenses

Expenses

2014

$ 13,358 6,238 5,090 4,150

28,836

567 1,260 - -

1,827

$ 30,663

2013

$ 13,534 5,485 4,645 3,841

27,505

783 - 702 204

1,689

$ 29,194

2014 Expenses

Operations and maintenance

Administrative services

Engineering services

Depreciation

Intergovernmental subgrantee payments

Interest expense

Operating expenses increased in 2014 due to engineering costs related to flood recovery efforts and administrative costs relating, in part, to the Cost of Service Rate Study.

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The decrease in 2014 income before contributions reflects the revenue relating to a perpetual water delivery agreement that was a one time 2013 transaction. In 2014, Northern Integrated Supply Project participants contributed $1.5 million to fund the current year permitting efforts of the project. In addition, Southern Water Supply Project II participants contributed $390,000 for right-of-way acquisition expenses.

CAPITAL ASSETS (thousands)September 30,

Land, easements and water rights Construction in progress Water pipelines and equipment Hydropower plant Operations equipment Buildings and improvements Computer and office equipment

Capital assets

Less accumulated depreciation

Capital assets, net of accumulated depreciation

2014

$ 88,195 16,382 99,258 6,279 5,372 18,594 8,172 242,252

( 56,043 )

$ 186,209

2013

$ 87,996 13,902 99,068 6,279 5,591 18,733 8,041 239,610

( 52,252 )

$ 187,358

NET POSITION (thousands)Years ended September 30,

Income before contributionsCapital contributions

Increases in net position

Net position, beginning of year(1)

Net position, end of year

2014

$ 2,955 1,890

4,845

215,055

$ 219,900

2013

$ 11,086 1,799

12,885

202,170

$ 215,055

In 2014 capital assets, net of accumulated depreciation, decreased $1.1 million. Additional investment in construction in progress totalling $2.5 million for Southern Water Supply Project II, the Northern Integrated Supply Project, the Northern Water headquarters facilities remodeling, and the initiation of internal development of water accounting software combined with the current year purchases of computer and operations equipment were offset by 2014 depreciation and disposals.

See additional information relating to capital assets at Note 9 to the financial statements.

(1) Opening Net Position for 2013 restated for GASB Statement No. 65.

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DEBT ADMINISTRATION (thousands)September 30,

Certificates of Participation, Series 2012Horsetooth Safety of DamsPole Hill CanalColorado Water Resources and Power Development Authority

Long-term debt outstandingLess current maturities of long-term debt

Long-term debt, net of current maturities

Interfund loan payableLess current maturities of interfund loan payable

Interfund loan payable, net of current maturities

The Certificates of Participation, Series 2012 refunded the Certificates of Participation, Series 2002, originally issued to finance construction of the Northern Water headquarters facilities. The Certificates maintain an AA- rating from Standard & Poor’s. In this financial report the Certificates are referred to as debt and long-term debt. However, as described in Note 1 and further in Note 12 to the financial statements, this financing is an obligation of the Northern Colorado Water Conservancy District Building Corporation (Building Corporation) and does not constitute debt of Northern Water, as debt is defined in the Colorado constitution and law. The financial statements of the District Fund and the Building Corporation are blended in this report as required by generally accepted accounting principles.

The Horsetooth Safety of Dams and Pole Hill Canal contract obligations represent amounts payable to Reclamation pursuant to Supplements 7 and 8 of the Repayment Contract between Northern Water and Reclamation for Northern Water’s share of costs incurred in modifying and improving C-BT facilities. The debt payable to Colorado Water Resources and Power Development Authority partially funded the construction of the R.V. Trout Hydropower facility. The remainder of the hydropower plant construction funding consisted of an interfund loan from the District.

The decrease in debt balances reflects the scheduled annual principal payments.

SUBSEQUENT EVENTS

In fiscal year 2015, the Northern Water Board of Directors approved construction and development of the Granby Dam Hydropower Project. The project is expected to include a $2 million purchase commitment for the purchase of plant equipment, a $5 million loan from CWCB financing the project, a 30-year renewable agreement with an electric association for the sale of energy generated from the facility and a 40-year renewable Lease of Power Privilege with Reclamation to permit the Granby Dam Hydropower Project to connect to the C-BT Granby Dam for the benefit of generating electricity. Construction is expected to begin in 2015 with the facility operational in 2016.

FINANCIAL CONTACT

Northern Water’s financial statements are designed to present users (water users, taxpayers, participants and creditors) with a general overview of Northern Water’s finances and to demonstrate the government’s accountability. If you have any questions regarding the report or need additional financial information, please contact the Financial Services Department, Northern Colorado Water Conservancy District, 220 Water Avenue, Berthoud, Colorado 80513.

2014

$ 8,452 3,786 524 1,834

14,596 ( 1,281 )

$ 13,315 $ 4,506 ( 197 )

$ 4,309

2013

$ 9,523 3,886 602 1,917

15,928 ( 1,241 )

$ 14,687

$ 4,700 ( 193 )

$ 4,507

Northern Water 10

September 30, 2014

Business-type Activity Enterprise Funds

ASSETS

Current assets Cash and cash equivalents Unrestricted Restricted Investments, unrestricted Receivables Due from other funds Advances Other current assets Current maturity of interfund loan receivable

Current assets

Noncurrent assets Cash and cash equivalents, restricted

Interfund loan receivable

Capital assets Land, easements and water rights Construction in progress Water pipelines and equipment Hydropower plant Operations equipment Buildings and improvements Computer and office equipment

Capital assets Less accumulated depreciation Capital assets, net of accumulated depreciation Noncurrent assets

Assets

Statement of Net PositionProprietary Funds

District

$ 22,858,295 1,820,006 14,442,769 5,757,989 1,048,631 511,959 1,075,748

197,305

47,712,702

2,089,341

4,309,258

82,027,587 283,363 - - 5,371,761 18,594,598 8,172,229 114,449,538 ( 17,081,100 )

97,368,438

103,767,037

$ 151,479,739

Southern WaterSupply Project

$ 1,578,114 - - 145,341 - - -

-

1,723,455

-

-

5,232,983 1,607,625 69,526,213 - - - -

76,366,821 ( 31,164,625 )

45,202,196

45,202,196

$ 46,925,651

Pleasant ValleyPipeline

$ 120,145 - - - - - -

-

120,145

-

-

934,330 - 29,732,205 - - - -

30,666,535 ( 7,433,051 )

23,233,484

23,233,484

$ 23,353,629

NorthernIntegrated

Supply Project

$ 536,613 - - - - 46,418 -

-

583,031

-

-

- 14,490,801 - - - - -

14,490,801 -

14,490,801

14,490,801

$ 15,073,832

Total

$ 25,490,823 1,820,006 14,442,769 6,059,202 1,048,631 578,518 1,075,748

197,305

50,713,002

2,515,578

4,309,258

88,194,900 16,381,789 99,258,418 6,278,945 5,371,761 18,594,598 8,172,229

242,252,640 ( 56,043,181 )

186,209,459

193,034,295

$ 243,747,297

Northern WaterHydropower

$ 397,656 - - 155,872 - 20,141 -

-

573,669

426,237

-

- - - 6,278,945 - - -

6,278,945 ( 364,405 )

5,914,540

6,340,777

$ 6,914,446

See accompanying Notes to Financial Statements.

Northern Water 11

LIABILITIES

Current liabilities Accounts payable and accrued liabilities Due to other funds Interest payable Compensated absences Current maturities of long-term debt Current maturity of interfund loan payable

Current liabilities

Noncurrent liabilities Long-term debt, net of current maturities Interfund loan payable, net of current maturity

Noncurrent liabilities

Liabilities

NET POSITION

Net investment in capital assets

Restricted net position Major repairs Capital projects Debt service Unrestricted net position (deficit)

Net position

Total

$ 2,547,534 1,048,631 303,049 844,648

1,281,610

197,305

6,222,777

13,314,700

4,309,258

17,623,958

$ 23,846,735

$ 171,634,522 1,989,049 1,005,286 125,363

45,146,342

$ 219,900,562


$ 7,150 100,148 59,388 -

85,639

197,305

449,630

1,748,088

4,309,258

6,057,346

$ 6,506,976

$ 4,080,813

- - 125,363

( 3,798,706 )

$ 407,470

NorthernIntegrated

Supply Project

$ - 314,154 - -

-

-

314,154

-

-

-

$ 314,154

$ 14,490,801

- 433,228 -

( 164,351 )

$ 14,759,678


$ - 44,942 - -

-

-

44,942

-

-

-

$ 44,942

$ 23,233,484

- - -

75,203

$ 23,308,687


$ - 589,387 - -

-

-

589,387

-

-

-

$ 589,387

$ 45,202,196

- 572,058 -

562,010

$ 46,336,264

District

$ 2,540,384 - 243,661 844,648

1,195,971

-

4,824,664

11,566,612

-

11,566,612

$ 16,391,276

$ 84,627,228

1,989,049 - -

48,472,186

$ 135,088,463


Winter at Northern Water’s Interpretive Area

Northern Water 13

Year ended September 30, 2014

Operating revenues Assessments Charges for services Energy revenue Other operating revenues

Operating revenues

Operating expenses Operations and maintenance Administrative services Engineering services Depreciation

Operating expenses

Operating income (loss)

Nonoperating revenues (expenses) Property and specific ownership taxes Earnings on investments Interest expense Intergovernmental Intergovernmental subgrantee payments Other nonoperating revenues (expenses), net

Nonoperating revenues (expenses), net

Income (loss) before contributions

Capital contributions

Changes in net position

Net position, beginning of year



Statement of Revenues, Expenses and Changes in Net PositionProprietary Funds

District

$ 6,915,198 4,658,426 - 1,836,202

13,409,826

12,091,845 6,215,150 5,072,117 1,601,341

24,980,453

( 11,570,627 )

15,569,049 207,134 ( 437,116 ) 1,787,608

( 1,259,635 )

1,033,784

16,900,824

5,330,197

-

5,330,197

129,758,266

$ 135,088,463


$ 879,096 - - -

879,096

963,543 12,350 15,136 1,646,748

2,637,777

( 1,758,681 )

- 165 - 174,654

-

-

174,819

( 1,583,862 )

390,000

( 1,193,862 ) 47,530,126

$ 46,336,264


$ 81,655 - - -

81,655

66,974 5,601 2,178 744,579

819,332

( 737,677 )

- 12 - -

-

( 5,603 )

( 5,591 )

( 743,268 )

-

( 743,268 )

24,051,955

$ 23,308,687

NorthernIntegrated

Supply Project

$ - - - -

-

- - - -

-

-

- 58 - -

-

-

58

58

1,500,000

1,500,058

13,259,620

$ 14,759,678


$ - - 480,309 230

480,539

235,704 5,522 910 156,974

399,110

81,429

- 1,075 ( 129,796 ) -

-

-

( 128,721 )

( 47,292 )

-

( 47,292 )

454,762

$ 407,470

Total

$ 7,875,949 4,658,426 480,309 1,836,432

14,851,116

13,358,066 6,238,623 5,090,341 4,149,642

28,836,672

( 13,985,556 )

15,569,049 208,444 ( 566,912 ) 1,962,262

( 1,259,635 )

1,028,181

16,941,389

2,955,833

1,890,000

4,845,833

215,054,729

$ 219,900,562


Northern Water 14


Cash flows from operating activities Receipts from customers Payments to suppliers Payments to employees

Net cash provided by (used in) operating activities

Cash flows from noncapital financing activities Property and specific ownership tax receipts Intergovernmental grants Intergovernmental subgrantee payments Other receipts

Net cash provided by noncapital financing activities

Cash flows from capital and related financing activities Capital contributions Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Receipts from interfund loan Proceeds from sale of capital assets

Net cash used in capital and related financing activities

Cash flows from investing activities Investment purchases Investment sales Proceeds from earnings on investments Net cash provided by investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year


Statement of Cash FlowsProprietary Funds

Total

$ 22,222,531 ( 8,295,958 ) ( 14,876,576 )

( 950,003 )

15,624,173 1,312,667

( 1,259,635 ) 819,243 16,496,448

1,890,000

( 4,839,486 ) ( 1,434,999 ) ( 674,004 ) 193,437 129,785

( 4,735,267 )

( 13,244,759 ) 13,065,115

305,772

126,128

10,937,306

18,889,101

$ 29,826,407

District

$ 20,820,914 ( 7,543,921 ) ( 14,437,414 )

( 1,160,421 )

15,624,173 1,283,355

( 1,259,635 ) 819,243

16,467,136

-

( 2,551,770 ) ( 1,157,603 ) ( 541,650 ) 193,437 129,785

( 3,927,801 )

( 13,244,759 ) 13,065,115

304,462

124,818

11,503,732

15,263,910

$ 26,767,642


$ 877,205 ( 574,929 ) ( 332,789 )

( 30,513 )

- 29,312

- -

29,312

390,000

( 522,027 ) - - - -

( 132,027 )

- -

165

165

( 133,063 )

1,711,177

$ 1,578,114


$ 101,831 ( 35,148 ) ( 47,820 )

18,863

- -

- -

-

-

- - - - -

-

- -

12

12

18,875

101,270

$ 120,145

NorthernIntegrated

Supply Project

$ - - -

-

- -

- -

-

1,500,000

( 1,765,689 ) - - - -

( 265,689 )

- -

58

58

( 265,631 )

802,244

$ 536,613


$ 422,581 ( 141,960 ) ( 58,553 )

222,068

- -

- -

-

-

- ( 277,396 ) ( 132,354 ) - -

( 409,750 )

- -

1,075

1,075

( 186,607 )

1,010,500

$ 823,893


Northern Water 15

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss)

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation (Increase) decrease in Receivables Due from other funds Advances Other current assets Increase (decrease) in Accounts payable and accrued liabilities Due to other funds Compensated absences

Adjustments

Net cash provided by (used in) operating activities

Non-cash activities Loss on investments Valuation of current assets held for resale

District

( $ 11,570,627 )

1,601,341

7,704,674 ( 135,726 ) 926,523 ( 257,342 )

583,695 - ( 12,959 )

10,410,206

( $ 1,160,421 )

$ 79,071

64,500


( $ 1,758,681 )

1,646,748

( 1,889 ) - - -

- 83,309 -

1,728,168

( $ 30,513 )

$ -

-


( $ 737,677 )

744,579

20,175 - - -

- ( 8,214 ) -

756,540

$ 18,863

$ - -

NorthernIntegrated

Supply Project

$ -

-

- - - -

- - -

-

$ -

$ -

-


$ 81,429

156,974

( 57,728 ) - ( 3,231 ) -

7,150 37,474 -

140,639

$ 222,068

$ - -

Total

( $ 13,985,556 )

4,149,642

7,665,232 ( 135,726 ) 923,292 ( 257,342 )

590,845 112,569 ( 12,959 )

13,035,553

( $ 950,003 )

$ 79,071

64,500


Northern Water 16

September 30, 2014

Assets Cash and cash equivalents

Investments Domestic equities Mutual funds Fixed income International equities Liquid low correlated hedge Commodities Emerging markets equities

Investments

Assets

Liabilities

Net position held in trust for participants

Statement of Fiduciary Net PositionFiduciary Fund Pension Trust Fund

Northern WaterGroup Pension

Plan

$ 1,403,665

9,491,414

12,184,008 3,618,861 3,248,092 1,466,099 1,560,429

31,568,903

32,972,568

-

$ 32,972,568


Northern Water 17


Additions Employer contributions

Investment earnings Net appreciation in fair value of investments Interest and dividends

Investment earnings Investment expenses

Investment earnings, net of expenses

Additions

Deductions Benefits

Increase in net positionNet position, beginning of year


Statement of Changes in Fiduciary Net PositionFiduciary Fund Pension Trust Fund

Northern WaterGroup Pension

Plan

$ 1,740,550

1,611,082 670,632 2,281,714 ( 113,134 )

2,168,580

3,909,130

( 1,900,374 )

2,008,756 30,963,812

$ 32,972,568


Northern Water 18

Notes to Financial StatementsSeptember 30, 2014

1Summary of Significant Accounting Policies

Financial Reporting EntityNorthern Water is a quasi-municipal entity and political subdivision of the State of Colorado organized on September 20, 1937. Northern Water is governed by a 12-member Board of Directors (Board), which is appointed by the presiding District Court Judges of four of the five judicial districts located wholly or partially within Northern Water boundaries. Board members are appointed to four-year terms, which are staggered so that three Board seats are up for appointment each year.

In 2002, Northern Water organized the Building Corporation as a nonprofit corporation in accordance with state law to facilitate the financing of the Northern Water headquarters facilities. The Northern Water Board serves as the Board of Directors of the Building Corporation. The Building Corporation financed the headquarters facilities through the issuance of Certificates of Participation. The Certificates of Participation are payable solely from Northern Water’s facilities lease payments. The Building Corporation has a September 30 year end.

As required by generally accepted accounting principles (GAAP), Northern Water’s financial statements present the activities of the Building Corporation as a blended component unit of the District Fund. The Building Corporation is a legally separate entity but is, in substance, part of the District’s operations. Separate financial statements for the Building Corporation are not issued.

Measurement Focus, Basis of Accounting and Financial Statement PresentationNorthern Water is a special-purpose government engaged in business-type activities. The accounts are organized and operated on a fund basis. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, net position, revenues and expenses. For these business-type activities, enterprise fund financial statements are presented. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, consistent with businesses in the private sector. Revenues are recorded when earned and expenses are recorded when liabilities are incurred, regardless of the timing of related cash flows. The Northern Water Group Pension Plan (Pension Plan), a defined benefit retirement plan, is presented as a fiduciary fund pension trust fund.

The financial statements of Northern Water have been prepared in conformity with GAAP as promulgated by the Governmental Accounting Standards Board (GASB), the accepted standard setting body for establishing governmental accounting and financialreporting principles.

GASB Statement No. 34 sets forth minimum criteria for the determination of major and nonmajor funds. All of the Northern Water business-type enterprise funds with the exception of the NISP Fund met this critieria at September 30, 2014. Northern Water management has elected to report the financial statements of the NISP Fund as a major fund due to its potential significance in future years.

Northern Water, pursuant to a perpetual contract with the United States Department of the Interior and in conjunction with Reclamation, operates and maintains a portion of the C-BT. The primary purpose of the C-BT is the development and use of the watersof the Colorado and Big Thompson rivers.

The following is a description of the proprietary business-type enterprise and fiduciary funds of Northern Water:

• The District Enterprise Fund accounts for the activities of the District including maintenance and operations of the C-BT.

• Southern Water Supply Project Water Activity Enterprise (SWSP) Fund accounts for the activities of the Southern Water Supply Project pipeline system and the Southern Water Supply Project II pipeline, which is in the design and right-of-way acquisition stage.

• The Pleasant Valley Pipeline Water Activity Enterprise (PVP) Fund accounts for the activities of the Pleasant Valley Pipeline.

• The Northern Integrated Supply Project Water Activity Enterprise (NISP) Fund accounts for the activities of the Northern Integrated Supply Project. The project is in the permitting stage.

• The Northern Water Hydropower Water Activity Enterprise (Hydropower) Fund accounts for the activities of the R.V. Trout Hydropower facility.

• The Northern Water Group Pension Plan Fund (Pension Plan) accounts for the activities of Northern Water’s defined benefit retirement pension plan. As a fiduciary fund pension trust fund, the Plan reports net position held in trust for Pension Plan participants and, therefore, is not available to support Northern Water operations. The reporting focus of the Pension Plan is on net position and changes in net position and employs accounting principles similar to the proprietary enterprise funds described above. As further described in Note 17, the financial statements of the Pension Plan are reported using the economic resources measurement focus and the accrual basis of accounting.

Proprietary enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses result from providing services and delivering goods in connection with the funds’ principal ongoing operations. Operating revenues of Northern Water enterprise funds consist primarily of assessments, charges for services and energy revenue. Operating expenses include operations, administration and engineering costs associated with providing untreated water, services and energy, and depreciation on capital assets. All revenues and expenses not meeting this definition, including property and specific ownership taxes, are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is Northern Water’s policy to use restricted resources for their specified purposes first, then unrestricted resources as needed.

Northern Water 19

Assets, Liabilities and Net Position

Cash, Cash Equivalents and Investments, Unrestricted and RestrictedAll cash, cash equivalents and investment balances are reported at their fair value with net appreciation or depreciation on the assets included in earnings on investments. Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Certain of these balances are classified as restricted on the Statement of Net Position because their use is limited by either Board direction, contractual obligations or debt covenants. Balances restricted by contract or debt covenants are held in separate bank accounts by a bank trust department acting as trustee for Northern Water (Note 8).

The Board has adopted an investment policy for its proprietary funds that establishes the investment scope and objectives for Northern Water. The policy allows for the following investments:

• U.S. Treasury Obligations guaranteed by the U.S. Government.

• Federal Instrumentality Securities, including those issued by or fully guaranteed by federal agencies or the U.S. Government.

• Time Certificates of Deposit in FDIC insured state or nationally chartered banks or savings banks.

• Corporate Bonds issued by a corporation or bank organized and operated within the United States and denominated in United States dollars.

• Municipal Bonds representing general and revenue obligations of or under the authority of any state in the United States or any political subdivision of such a government entity. Bonds must be rated one of the two highest categories or the equivalent by two nationally recognized statistical rating organizations (NRSROs).

• Commercial Paper rated at least A-1 or the equivalent at the time of purchase by at least two NRSROs. The issuer’s commercial paper program shall not exceed $200 million.

• Bankers Acceptances issued by FDIC insured state or national banks with combined capital and surplus of at least $250 million.

• Repurchase Agreements collateralized by U.S. Treasury Obligations and Federal Instrumentality Securities.

• Local Government Investment Pools authorized under Colorado state statute.

• Money Market Mutual Funds registered under the Investment Company Act of 1940 and authorized under Colorado state statute.

Colorado statutes require that Northern Water use eligible public depositories as defined by the Colorado Public Deposit Protection Act. Under the Act, amounts on deposit in excess of federal insurance levels must be collateralized by the banks. The eligible collateral is determined by the Act and allows the financial institution to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all the

uninsured public deposits as a group. The market value of the collateral must be at least equal to the aggregate uninsured deposits.

ReceivablesNorthern Water does not provide an allowance for uncollectible receivable balances as all balances are considered fully collectible.

Due To/From Other FundsThe District Fund provides certain administrative, operations and maintenance services to the other Northern Water enterprise funds. Charges for these services are considered equal to their cost and, therefore, are reported as operating revenue from charges for services on the District Fund and operating expenses by the enterprise funds receiving the services.

AdvancesIn accordance with the District’s contract with Reclamation, the District makes estimated advance payments to Reclamation for its share of operations and maintenance costs as described in more detail under C-BT Operations and Maintenance Costs below. In addition, the District advances to Reclamation an amount equal to three months estimated operating costs for C-BT multipurpose features maintained by Reclamation. This advance and the estimated payments in excess of actual costs incurred are reflected as advances.

Other Current AssetsOther current assets include prepaid expenses and a net pension plan asset arising from Northern Water’s Pension Plan. Prepaid expenses reflect payments to vendors applicable to future periods. The pension plan asset represents the prior year’s net pension asset adjusted for the difference between the actuarially determined annual pension cost and Northern Water’s actual contribution to the Pension Plan (Note 17).

Capital AssetsCapital assets of Northern Water include infrastructure assets such as water pipelines and the hydropower plant, water rights, buildings and improvements, computer, office and operations equipment. Contracts between Reclamation and Northern Water give to Northern Water perpetual rights to use water made available by the C-BT. These rights have an indefinite useful life and are not depreciated or amortized.

All amounts incurred for the construction or acquisition of infrastructure assets, including labor and legal costs, are capitalized. Interest expense relating to a capital asset and incurred during the construction phase is included as part of the capitalized value of the asset constructed. Capital assets, other than infrastructure assets, are defined by Northern Water as assets with an initial individual cost of more than $5,000. As Northern Water completes construction or acquires capital assets, including infrastructure assets, they are capitalized and reported at historical cost. This reported value excludes normal maintenance and repairs, which are amounts incurred in relation to capital assets that do not increase the capacity or efficiency of those assets or extend their useful lives beyond the original estimate.

Northern Water 20

Capital assets are depreciated using the straight-line method over thefollowing estimated useful lives: Years Water pipelines and hydropower plant 40 Buildings and improvements 5 - 25 Operations equipment 5 - 10 Office equipment 5 - 10 Computer equipment 3

Accrued LiabilitiesNorthern Water self insures its specific individual medical claims and maintains a restricted cash reserve for future claims. In accordance with GAAP, Northern Water accrues an estimated liability for medical claims incurred but not reported (IBNR). The accrual is based on industry norms given actual claims paid by Northern Water, and the estimated liability is included in accounts payable and accrued liabilities.

Compensated AbsencesNorthern Water accrues accumulated annual and compensatory leave benefits when earned by an employee and reflects the unused leave obligation as an accrued liability. In the event of an employee’s termination, the employee is paid for the unused accumulated days up to specified maximum amounts. Employees do not accumulate sick leave and, therefore, no liability for unpaid sick leave is accrued.

Long-term DebtLong-term debt is reported including the applicable unamortized bond premiums associated with the Northern Water Certificates of Participation. Amortization is calculated over the life of the bonds using the effective interest method and recorded as an adjustment to interest expense.

Net PositionThe financial statements utilize a net position presentation categorized as net investment in capital assets; restricted net position for major repairs, capital projects and debt service; and unrestricted. Net investment in capital assets reflects the portion of net position associated with capital assets, less outstanding capital-asset-related debt. Restricted net position consists of liquid assets generated from revenues that have third-party debt or contractual limitations on their use. Unrestricted net position represents unrestricted liquid assets.

Revenues and Expenses

C-BT Operations and Maintenance CostsWater distribution and power generation features of the C-BT are each considered to be single purpose features, whereas project features that serve or benefit both power generation and water supply are considered multipurpose. Operations and maintenance costs for single purpose water distribution features are the sole responsibility of Northern Water; costs associated with single purpose power generation features are the sole responsibility of Reclamation. Since 1986, Northern Water has had the majority of the responsibility for the operations and maintenance of multipurpose project features. Reclamation reimburses Northern Water 50 percent of the operations and maintenance costs incurred by Northern Water for multipurpose features. Similarly, Northern Water reimburses Reclamation 50 percent of the operations and maintenance costs incurred by Reclamation on those multipurpose project features not maintained by Northern Water. Reclamation reimbursements to Northern Water and Northern Water reimbursements to Reclamation

are reflected as operating revenues from charges for services and operating expenses for operations and maintenance, respectively, on the accompanying Statement of Revenues, Expenses and Changes in Net Position.

Energy RevenueHydropower energy revenue includes revenue from generated power and the sale of green energy credits. Revenue earned is based on megawatt-hours of energy produced.

Property and Specific Ownership TaxesNorthern Water collects a voter-approved 1.00 mill levy tax on real property located within the Northern Water boundaries. This tax is levied by the respective eight county treasurers in December of each year and attached as an enforceable lien on property on January 1 of the following year. The county treasurers are responsible for collecting the assessments and remitting them to Northern Water. Property and specific ownership tax revenue is reported as nonoperating revenues on the accompanying financial statements.

2Stewardship, Compliance and Accountability

Tax Revenue, Spending and Multiple-Fiscal Year Debt and Other Financial Obligation LimitationsArticle X, Section 20, of the Colorado Constitution contains limitations on the ability of state and local governmental entities to increase taxes, revenues and spending and to enter into multiple fiscal year debt, direct and indirect, or other financial obligations. However, these limitations do not apply to “enterprises” as defined in the constitutional provision. Northern Water’s Southern Water Supply Project Water Activity Enterprise, Pleasant Valley Pipeline Water Activity Enterprise, Northern Integrated Supply Project Water Activity Enterprise and the Northern Water Hydropower Water Activity Enterprise have been established as “water activity enterprises” in accordance with Colorado statutes and, as “enterprises,” are excluded from the application of these constitutional restrictions. Northern Water believes that the District is in compliance with these limitations.

Budgetary InformationAppropriated annual budgets are established and adopted for the proprietary funds on a basis consistent with GAAP with the followingexceptions:

• Annual principal debt repayments are budgeted as nonoperating expenditures.

• Proceeds from long-term debt are budgeted as nonoperating revenues.

• Depreciation is not budgeted.

• Capital expenditures are treated as nonoperating expenditures.

Northern Water follows these annual procedures in establishingbudgetary data reflected in the financial statements:

• On or before June 1 of each fiscal year, all Department Managers submit working budgets to Budget Officers.

• Budget Officers submit an overall proposed budget to the Board

Notes to Financial Statements

Northern Water 21

prior to the August Planning and Action meeting.

• The Board holds a public hearing during the August Planning and Action meeting, and the budget is legally enacted through passage

of a resolution by the Board.

The level of control (level at which expenses may not exceed appropriations) is maintained at the department, capital outlay and debt service levels. Management is authorized to transfer budgeted amounts between departments; however, any revisions that exceed the appropriated balances must be approved by the Board. Unusedappropriations lapse at the end of each fiscal year.

In 2014, the Board approved contingent appropriations for unanticipated expenditures as follows: SWSP Fund, $150,000; NISP Fund, $500,000; and Hydropower Fund, $27,000.

3Change in Accounting Estimate

The 2013 Northern Water financial statements did not include a receivable or associated intergovernmental revenue relating to FEMA flood recovery grants due to the preliminary nature and estimates involved in the FEMA application process. In 2014, Northern Water estimated and recorded nonoperating intergovernmental revenues of $653,978 relating to FEMA flood recovery applications. This amount included $414,798 that was outstanding at September 30, 2014, and was reflected in receivables. Receivables and revenue as of and for the year ended September 30, 2014, included $110,800 related to 2013.

4Cash, Cash Equivalents and Investments

On September 30, 2014, Northern Water had the following cash, cash equivalents and investments:

Interest Rate and Credit RiskInterest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Credit risk is generally considered to be the risk that a financial institution holding a deposit or an issuer of an investment will not fulfill its obligation to a depositor or investor. Credit risk can be measured in part by the assignment of a rating by a NRSRO. Concentration of credit risk arises

from the magnitude of an investment in a single issuer.

Current assets Cash and cash equivalents Unrestricted Restricted Investments, unrestricted

Noncurrent assets Cash and cash equivalents, restricted

Cash, cash equivalents and investments

Money MarketFunds

$ 8,338,159 67,156

-

2,515,578

$ 10,920,893

Deposits/Cash on Hand

$ 17,152,664 1,752,850

-

-

$ 18,905,514

Total

$ 25,490,823 1,820,006

14,442,769

2,515,578

$ 44,269,176

US GovernmentSecurities

$ - -

8,273,964

-

$ 8,273,964

Federal AgencySecurities

$ - -

3,042,581

-

$ 3,042,581

CorporateNotes

$ - -

2,426,327

-

$ 2,426,327

CommercialPaper

$ - -

699,897

-

$ 699,897

Northern Water 22

To the extent possible, Northern Water investments are matched with anticipated cash flow requirements. Investments are not invested in securities maturing more than five years from the date of trade settlement.


As of September 30, 2014, Northern Water had cash equivalents and investments with the following maturities:

As of September 30, 2014, Northern Water had cash equivalents and investments with the following Standard and Poor’s ratings:

In accordance with Northern Water’s investment policy, investments are limited to those meeting the following criteria:

Investment Type

InvestmentRatings

Not RatedA-1AA-AAAA+AAAAAAm

Fair Value

Commercial Paper

$ - 699,897 - - - - -

$ 699,897

CorporateNotes

$ - - 709,034 345,992 1,002,010 369,291 -

$ 2,426,327

Federal Agency Securities

$ 348,766 - - - 2,693,815 - -

$ 3,042,581

Money Market Funds

$ - - - - - - 10,920,893

$ 10,920,893

RatingRestrictions

N/AN/A30+AA-AA-AA-A-1A-1A-1

AAAmAAAm

MaturityRestrictions

5 years5 years1 year3 years3 years3 years

270 days180 days180 days

N/AN/A

U.S. Treasury ObligationsFederal Instrumentality SecuritiesTime Certificates of DepositCorporate BondsMunicipal BondsPre-Refunded Municipal BondsCommercial PaperBankers AcceptancesRepurchase AgreementsLocal Government Investment PoolsMoney Market Mutual Funds

MaximumPortfolio

Percentage

100% 85% 5% 35% 20% 40% 25% 20% 50% 100% 100%

MaximumIssuer

Percentage

100% 35% 1% 5% 5% 5% 5% 5% 10% 50% 50%

Investment Maturities

Less than 1 year1 - 2 years2 - 3 years

Fair Value

Money Market Funds

$ 10,920,893 - -

$ 10,920,893

Federal Agency Securities

$ - 1,839,301 1,203,280

$ 3,042,581

CorporateNotes

$ - 1,688,116 738,211

$ 2,426,327

Commercial Paper

$ 699,897 - -

$ 699,897

US Government Securities

$ - 4,616,751 3,657,213

$ 8,273,964

Northern Water 23

5Receivables

Receivables at September 30 are summarized by major classification as follows:

Municipal SubdistrictWater assessmentsIntergovernmentalCharges for servicesEnergy revenueMedical stop lossOtherInterest receivable

Receivables

6Due To/From Other Funds

Amounts due from the various Northern Water enterprise funds to the District Fund outstanding at September 30 are as follows:

Due From Southern Water Supply Project Pleasant Valley Pipeline Northern Integrated Supply Project Hydropower

Due to District Fund

7Other Current Assets

Other current assets at September 30 included the following:

Net pension asset Other current assets

Other current assets

8Cash and Cash Equivalents, Restricted

Restricted cash and cash equivalents as shown on the accompanyingfinancial statements were reserve balances at September 30 detailed as follows:

Current assets Certificates of Participation, Base Rental Medical Reserve

Current cash and cash equivalents, restricted

Noncurrent assets Reclamation Fund I Single Purpose Fund II Multipurpose Fund IV Contingency Emergency Hydropower Facility Removal Hydropower Colorado Water Resources and Power Development Authority Debt Service Interfund Loan Payable Debt Service

Noncurrent cash and cash equivalents, restricted

Certificates of Participation, Base RentalFinancing reserve for the current principal and interest payments due on the outstanding Certificates of Participation.

Reclamation ReservesFund I Single Purpose - Reserve for major repairs, extraordinary and unforeseen expenditures for the C-BT single purpose water supply features and operations and maintenance costs in the event there are insufficient funds available for such purposes from current revenues. Funding requirements are $600,000 with a minimum of $100,000.

Fund II Multipurpose - Reserve for major repairs, extraordinary and unforeseen expenditures for the C-BT multipurpose features and operation and maintenance costs in the event there are insufficient funds available for such purposes from current revenues. Funding requirements are $800,000 with a minimum of $150,000.

Fund IV Contingency - Reserve for contingent items with a fundingrequirement of $100,000.

Other ReservesMedical Reserve - Reserve for future medical claims.

Emergency Reserve - Reserve for declared emergencies.

Hydropower Facility Removal - Reserve against any future removal costs of the R.V. Trout Hydropower facility.

Colorado Water Resources and Power Development Authority (PowerAuthority) Debt Service - Reserve for the payment of one year’s debtservice requirement.

Interfund Loan Payable Debt Service - Reserve for the payment of one year’s debt service requirement on the interfund loan payable to Northern Water.

Reserve balances have been classified as current and noncurrent consistent with the anticipated uses of the reserve balances.

2014

$ 640,910 882,535 102,752 362,851 100,293

125,363 300,874

$ 2,515,578

2014

$ 783,748 292,000

$ 1,075,748

2014

$ 589,387 44,942 314,154 100,148

$ 1,048,631

2014

$ 67,156 1,752,850

$ 1,820,006

2014

$ 2,226,356 746,739 625,746 1,795,348 155,872 155,704 262,341 91,096

$ 6,059,202

Northern Water 24

9Capital Assets

Capital asset activity for the Northern Water enterprise funds for the year ended September 30, 2014, was as follows:

District Non-depreciable capital assets Land, easements and water rights Construction in progress Depreciable capital assets Buildings and improvements Operations equipment Computer and office equipment Capital assets Less accumulated depreciation Buildings and improvements Operations equipment Computer and office equipment Accumulated depreciation District capital assets, net

Southern Water Supply Project Non-depreciable capital assets Construction in progress Land and easements Depreciable capital assets Water pipeline and equipment Capital assets Less accumulated depreciation Water pipeline and equipment Southern Water Supply Project capital assets, net

Pleasant Valley Pipeline Non-depreciable capital assets Land and easements Depreciable capital assets Water pipeline and equipment Capital assets Less accumulated depreciation Water pipeline and equipment Pleasant Valley Pipeline capital assets, net

Northern Integrated Supply Project Non-depreciable capital asset Construction in progress

Hydropower Depreciable capital assets Hydropower plant Less accumulated depreciation Hydropower plant Hydropower capital assets, net

Capital assets, net

2013

$ 81,829,055 54,526

18,732,858 5,419,499 8,040,845 114,076,783

( 7,790,187 ) ( 5,071,837 ) ( 2,973,089 ) ( 15,835,113 ) 98,241,670

1,113,518 5,232,983

69,499,494 75,845,995

( 29,519,078 ) 46,326,917

934,330

29,739,846 30,674,176

( 6,690,510 ) 23,983,666

12,733,803

6,278,945

( 207,431 ) 6,071,514 $ 187,357,570

Additions

$ 213,898 228,837

- 144,561 156,696 743,992

( 744,461 ) ( 198,969 ) ( 657,911 ) ( 1,601,341 ) ( 857,349 )

494,107 -

27,920 522,027

( 1,646,748 ) ( 1,124,721 )

-

- -

( 744,579 ) ( 744,579 )

1,756,998

-

( 156,974 ) ( 156,974 )

($ 1,126,625 )

Retirements/Other

( $ 15,366 ) -

( 138,260 ) ( 192,299 ) ( 25,312 ) ( 371,237 )

138,260 191,782 25,312 355,354 ( 15,883 )

- -

( 1,201 ) ( 1,201 )

1,201 -

-

( 7,641 ) ( 7,641 )

2,038 ( 5,603 )

-

-

- - ( $ 21,486 )

2014

$ 82,027,587 283,363

18,594,598 5,371,761 8,172,229 114,449,538

( 8,396,388 ) ( 5,079,024 ) ( 3,605,688 ) ( 17,081,100 ) 97,368,438

1,607,625 5,232,983

69,526,213 76,366,821

( 31,164,625 ) 45,202,196

934,330

29,732,205 30,666,535

( 7,433,051 ) 23,233,484

14,490,801

6,278,945

( 364,405 ) 5,914,540 $ 186,209,459


Northern Water 25

No interest was capitalized on the 2014 construction in progress because there was no related debt.

10Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities at September 30 included the following:

Trade payablesAccrued payrollMedical claims incurred but not reported (IBNR)Other accrued liabilities

Accounts payable and accrued liabilities

IBNR activity for the years ended September 30 was as follows:

Claims incurredClaims paidAdjustment to IBNR estimateIBNR, beginning of year

IBNR, end of year

11Compensated Absences

Activity for annual leave and compensatory time off for the yearsended September 30 was as follows:

Absences accruedAbsences takenCompensated absences, beginning of year

Compensated absences, end of year

12Long-term Debt and Interfund Loan Receivable/Payable

Certificates of Participation, Series 2012The Certificates of Participation, Series 2012 refunded the Certificates of Participation, Series 2002, originally issued by the Building Corporation to finance construction of the Northern Water headquarters facilities. The Certificates are an obligation of the Building Corporation and do not constitute a general obligation or other indebtedness of Northern Water. Underlying the Certificates is an annually renewable lease, subject to annual appropriation, between Northern Water and the Building Corporation.

Annual principal repayments on the Series 2012 Certificates are due July 1, 2014 through 2021. Interest is payable in semi-annualinstallments on January 1 and July 1 at 3.0 to 4.0 percent. Amortization of the related bond premium amounted to $90,907 for the year ended September 30, 2014, and was credited against interest expense.

Horsetooth Safety of DamsNorthern Water was obligated under its contract with Reclamation to pay a portion of the costs of the Reclamation Horsetooth Safety of Dams project. This obligation was funded by Reclamation under Supplement No. 7 of the Repayment Contract between Northern Water and Reclamation. Annual payments of $323,415, including interest at5.75 percent, are to be paid on December 31 through 2033.

Pole Hill CanalNorthern Water was obligated under its contract with Reclamation to pay 50 percent of the costs of the Reclamation Pole Hill Canal project. This obligation was partially funded by Reclamation under SupplementNo. 8 of the Repayment Contract between Northern Water and Reclamation. Annual payments of $97,937, including interest at3.375 percent, are to be paid on January 1 through 2020.

Colorado Water Resources and Power Development AuthorityHydropower has a 20-year loan agreement with the Power Authority that was used to partially finance construction the R.V. Trout Hydropower facility. In accordance with the terms of the debt agreement, a reserve was established for debt service payments (Note 8). Energy revenues generated from the R.V. Trout Hydropower facility are pledged as security for the loan. Annual payments of $122,313, including interest at 2.0 percent, are to be paid annually on September 1 through 2032.

Interfund Loan Receivable/PayableHydropower capital financing not provided by the Power Authority as described above was provided by Northern Water in the form of a20-year loan to Hydropower. In accordance with the terms of the debt agreement, a reserve was established for debt service payments (Note 8). Energy revenues generated from the R.V. Trout Hydropower facility are pledged as security for the loan. Annual payments of $287,437, including interest at 2.0 percent, are to be paid annually on February 15 through 2033.

2014

$ 1,757,920 ( 1,757,920 ) 57,297 195,892

$ 253,189

2013

$ 793,213 ( 813,305 )

877,698

$ 857,606

2013

$ 1,373,550 ( 1,373,550 ) ( 8,212 ) 204,104

$ 195,892

2014

$ 802,145 ( 815,103 )

857,606

$ 844,648

2014

$ 1,646,862 620,646

253,189 26,837

$ 2,547,534

Northern Water 26

Certificates of Participation Series 2012 Certificates Unamortized premium

Certificates of Participation

Contracts Payable to Reclamation Horsetooth Safety of Dams Pole Hill Canal

Revenue-type Financing for Hydropower Colorado Water Resources and Power Development Authority

Long-term debt outstanding

Less: current maturities of long-term debt

Long-term debt, net of current maturities

Revenue-type Financing for Hydropower Interfund loan payable

Less: current maturity of interfund loan payable

Interfund loan payable, net of current maturities

Long-term debt activity for the year ended September 30, 2014, was as follows:

2013

$ 8,770,000 753,450

9,523,450

3,885,997 601,646

1,917,687

15,928,780

( 1,241,562 )

$ 14,687,218

$ 4,700,000

( 193,437 )

$ 4,506,563

Additions

$ - -

-

- -

-

-

( 40,048 )

( $ 40,048 )

$ -

( 3,868 )

( $ 3,868 )

Reductions

( $ 980,000 ) ( 90,907 )

( 1,070,907 )

( 99,971 ) ( 77,632 )

( 83,960 )

( 1,332,470 )

-

( $ 1,332,470 )

( $ 193,437 )

-

( $ 193,437 )

2014

$ 7,790,000 662,543

8,452,543

3,786,026 524,014

1,833,727

14,596,310

( 1,281,610 )

$ 13,314,700

$ 4,506,563

( 197,305 )

$ 4,309,258

Amounts DueWithin One

Year

$ 1,010,000 -

1,010,000

105,719 80,252

85,639

$ 1,281,610

$ 197,305

Annual debt service requirements to maturity by major type of debt including the interfund loan payable are as shown below:

(1) Includes Horsetooth Safety of Dams and Pole Hill Canal.(2) Includes Power Authority and the interfund loan payable.

Years endingSeptember 30,

201520162017201820192020-20242025-20292030-2034

Debt service

Annual DebtService

$ 2,109,602 2,109,302 2,108,103 2,106,003 2,112,003 6,317,865 3,665,828 3,133,765

$ 23,662,471

Principal

$ 1,010,000 1,040,000 1,070,000 1,100,000 1,150,000 2,420,000 - -

$ 7,790,000

Interest

$ 268,500 238,200 207,000 174,900 130,900 134,100 - -

$ 1,153,600

Certificates of ParticipationSeries 2012

Principal

$ 185,971 194,758 203,987 213,679 223,860 878,968 1,037,157 1,371,660

$ 4,310,040

Interest

$ 235,381 226,594 217,366 207,674 197,493 836,047 579,921 245,419

$ 2,745,895

Principal

$ 282,944 288,603 294,375 300,263 306,268 1,625,707 1,794,912 1,447,218

$ 6,340,290

Interest

$ 126,806 121,147 115,375 109,487 103,482 423,043 253,838 69,468

$ 1,322,646

Contracts Payable toReclamation(1)

Revenue-type Financing forHydropower(2)


Northern Water 27

Annual debt service requirements to maturity for all types of debt for Northern Water including the interfund loan payable are as follows:

Years endingSeptember 30,

201520162017201820192020-20242025-20292030-2034

Debt service

Principal

$ 1,478,915 1,523,361 1,568,362 1,613,942 1,680,128 4,924,675 2,832,069 2,818,878

$ 18,440,330

Interest

$ 630,687 585,941 539,741 492,061 431,875 1,393,190 833,759 314,887

$ 5,222,141

Total

$ 2,109,602 2,109,302 2,108,103 2,106,003 2,112,003 6,317,865 3,665,828 3,133,765 $ 23,662,471

13Hydropower Energy Revenue

Energy revenue is generated from the sale of power and green energy credits in accordance with a renewable 20-year agreement between Hydropower and Poudre Valley Rural Electric Association.

14Intergovernmental and Intergovernmental Subgrantee Payments

Northern Water is acting as fiscal administrator of the CWCB Flood Recovery Grant, designed to provide financial assistance to subgrantees who had infrastructure damaged by the September 2013 flood. Northern Water processes subgrantee applications and submits them to CWCB. Funds from CWCB are received by Northern Water and paid out directly to subgrantees. In 2014, CWCB funds received and paid to subgrantees by Northern Water amounted to $1,259,635 and were included in nonoperating revenues (expenses) Intergovernmental and intergovernmental subgrantee payments, respectively.

See discussion of FEMA transactions at Change in Accounting Estimate (Note 3). Northern Water also administered grant funds of $48,648 for the Colorado Department of Natural Resources Wildlife Risk Reduction Grant Program.

15Other Nonoperating Revenues

A total of 39 units of C-BT water allotment units, previously held in an inactive status, were considered forfeited and sold by Northern Water in 2014. Revenue of $514,367 was generated from the sales and included in other nonoperating revenue.

16Money Purchase Plan

Northern Water has a defined contribution Money Purchase Plan established by the Board in 2003 to provide retirement benefits to employees not covered under the Group Pension Plan. The Money Purchase Plan is administered by a third-party Plan administrator. At September 30, 2014, there were 52 Money Purchase Plan members. The

members are neither permitted nor required to make contributions to the Plan. Plan administration fees are paid by Northern Water.Under the terms of the Plan, Northern Water contributes as follows:

Years of Service Percentage of Employee’s Salary Less than 5 5% 5 - 10 6% 10 - 15 7% 15 or more 8%

The Board established the Money Purchase Plan and may amend its provisions and contribution requirements. Northern Water’s contribution to the Money Purchase Plan for the year endedSeptember 30, 2014, was $189,952.

17Group Pension Plan

Plan DescriptionNorthern Water has a single-employer, defined benefit Group Pension Plan (Pension Plan), which provides retirement benefits to qualified employees hired prior to January 1, 2003, and their beneficiaries. The Pension Plan is on a calendar-year basis. The Board established the Pension Plan and may amend it.

At January 1, 2014, the date of the most recent actuarial valuation, Pension Plan participants included 5 terminated employees entitled to benefits but not yet eligible to receive them, 9 retirees receiving benefits and 63 active plan members for a total of 77 participants. Cost-of-living increases are paid according to the terms of the PensionPlan. The Pension Plan does not issue a stand-alone financial report.

Summary of Significant Accounting Policies--Basis of Accounting and Valuation of InvestmentsThe financial statements of the Pension Plan are prepared using the accrual basis of accounting. Northern Water contributions to the Pension Plan are approved by the Board and recognized when paid into the Pension Plan as defined by its investment policy. Benefits are recognized when due and payable in accordance with the terms of the Pension Plan. Pension Plan assets are invested in a diversified portfolio of investments that includes domestic and international equities, fixed income, hedge funds and other investment securities. All Plan investments are reported at fair value as determined by their last trade prices on public exchanges at September 30, 2014. Investments are held in the name of the Pension Plan.

In 2012, the GASB issued Statement No. 68 Accounting and Financial Reporting for Pensions (Statement No. 68), which revises and establishes new financial reporting requirements for most governments that provide their employees with pension defined benefits. Statement No. 68 requires governments record an unfunded pension liability on their Statement of Net Position. The statement is effective for fiscal year 2015. At this time, management is unable to estimate the impact of adopting the new statement. Funding PolicyPension Plan contributions are established and may be amended by the Board. Contributions are neither permitted nor required of the Plan participants. Northern Water finances all Pension Plan administrative

Northern Water 28

costs and investment expenses. It is the policy of Northern Water to fully fund the Pension Plan according to actuarially determined annual required contributions. At January 1, 2014, the most current employer contribution rate reported was 45 percent of covered employee payroll.

Annual Pension Cost and Net Pension AssetNorthern Water’s annual pension cost and net pension asset for the Pension Plan as of and for the year ended September 30 was as follows:

Contributions made

Annual required contribution (ARC)Interest on Net Pension AssetAmortization of the Net Pension Asset

Annual pension cost

Increase in Net Pension AssetNet Pension Asset, beginning of year

Net Pension Asset, end of year

This asset was included in other current assets on the accompanying financial statements.

Northern Water’s annual pension cost, percentage of annual pension cost contributed and net pension asset for the Pension Plan for the current year and each of the two preceding years were as follows:

Funded Status and Funding ProgressThe funded status of the plan as of January 1 was as follows:

Actuarial accrued liabilityActuarial value of plan assets

Unfunded actuarial accrued liability

Funded ratio (actuarial value of plan assets/ actuarial accrued liability)Covered payroll (annual payroll of active employees covered by the plan)Unfunded actuarial accrued liability as a percentage of covered payroll

The schedule of funding progress, presented as required supplementary information following the Notes to Financial Statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the

actuarial accrued liability for benefits.

Actuarial Methods and AssumptionsThe annual required contribution to the Pension Plan was determined as part of the January 1, 2014, actuarial valuation using the following methods and assumptions:

Actuarial cost methodAmortization methodRemaining amortization periodAnnual inflation rateAsset valuation methodInvestment returnProjected annual salary increases Cost of living adjustments

Actuarial AssumptionsActuarial valuations of a defined benefit plan involve estimates and assumptions about the probability of occurence of future events. For example, the Northern Water discount rate and expected rate of return on plan assets are critical assumptions. Even relatively small changes in these rates could significantly alter amounts determined regarding the funded status of the Pension Plan and the annual required contribution. The Board believes the Pension Plan’s current discount rate and expected rate of return on plan assets used in determining its year-end pension accounting are reasonable based on available information. In 2014, the Board approved a decision to lower the expected cost of living adjustments to 1.5 percent effective with the January 1, 2015, actuarial valuation. Actuarially determined contribution and funding amounts are subject to annual revision as actual results are compared with past expectations and new estimatesare made about the future.

The actuarial valuation used the Aggregate Cost Method. Because this method does not identify or separately amortize unfunded actuarial accrued liabilities, information about funded status and funding progress has been presented using the entry age actuarial cost method and that information is intended to serve as a surrogate for the fundedstatus and funding progress of the plan.

The actuarial value of plan assets was determined using techniques that spread the effects of short-term volitility in the market value of investments over a 5-year period. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis.

Interest Rate and Credit RiskInterest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Weighted average maturities for the Pension Plan’s fixed income mutual funds were as follows:

Annual PensionCost

$ 1,480,677 1,558,146 1,509,795

Percentage of Annual Pension

CostContributed

102% 104% 115%

Net PensionAsset

$ 486,789 552,993 783,748

Year endedSeptember 30,

201220132014


2014

$ 1,740,550

1,376,863 ( 92,029 ) 224,961

1,509,795

230,755 552,993

$ 783,748

Aggregate Cost MethodLevel dollar, Open20 years2.75 percent5-year smoothed market6.75 percent0.0-5.0 percent2.0 percent

90.2%

$ 5,593,628

60.2%

Fixed Income Mutual Fund

Eaton Vance Floating Rate Pimco Total Return Fund Schroder Fixed Income Fund

Weighted Average Maturity

5.2 years 7.7 years 2.9 years

Fair ValueSeptember 30,

2014

$ 2,645,601 4,745,480 4,792,927

2014

$ 34,362,339 30,996,275

$ 3,366,064

Northern Water 29

Credit risk is generally considered to be the risk that an issuer of an investment will not fulfill its obligation to an investor. The fixed income mutual funds held by the Pension Plan at September 30, 2014, were unrated by a NRSRO. Concentration of credit risk arises from the magnitude of an investment in a single issuer. At September 30, 2014, no individual holdings of the Pension Plan exceeded 5 percent of Plan assets.

18Intergovernmental Transactions

Northern Water provides certain administrative, operational and maintenance services to the Subdistrict. In addition, Northern Water charges the Subdistrict for the Subdistrict’s use of the C-BT conveyance and storage system (carriage costs). District Fund revenue from charges for services and other operating revenues on the accompanying financial statement include charges to the Subdistrict totalling $1,956,874 for the year ended September 30, 2014, of which carriage costs amounted to $972,119. Outstanding charges at September 30, 2014, are included in receivables.

19Risk Management

Northern Water carries commercial insurance for its operations andproperty risks including business interruption, property losses, casualty risks, liability to third parties, natural disasters and injuries to employees. Settled claims have not exceeded insurance coverage in any of the past three fiscal years. Northern Water is self insured for medical benefits with stop loss coverage.

20Commitments and Contingencies

In the normal course of business, there are various outstanding legal proceedings, claims, commitments and contingent liabilities. In the opinion of management, the ultimate disposition of these matters will not have a materially adverse effect on the Northern Water financialstatements.

21Subsequent Events

In fiscal year 2015, the Northern Water Board approved the construction and development of the Granby Hydropower Plant. The project is expected to cost $5.5 million to be financed largely by the CWCB. The Granby Hydropower Plant is planned to be constructed in 2015 and operational in 2016.

Also in 2015, Northern Water, the Subdistrict and Reclamation entered into a new 40-year Carriage Contract agreement, which superceded the 1990 amendatory contract with Reclamation.

REQUIRED SUPPLEMENTARY INFORMATION

Northern Water 33

Schedule of Funding ProgressRequired Supplementary InformationFiduciary Fund Pension Trust Fund

ActuarialValuation Date

January 1,

199519961997199819992000200120022003

2004-2007(1)

2008200920102011201220132014

Actuarial Valueof Plan Assets

$ 5,154,275 5,846,957 6,799,531 8,089,434 9,200,964 10,971,368 11,890,760 13,121,698 13,581,902 N/A 19,785,113 18,165,768 20,460,416 22,527,902 25,029,999 27,114,998 30,996,275

ActuarialAccruedLiability

$ 6,068,223 6,632,890 7,599,171 8,624,897 9,605,470 10,802,892 11,446,855 13,500,021 15,293,621

N/A 20,836,700 22,435,336 25,913,637 27,508,733 29,759,159 32,022,683 34,362,339

UnfundedActuarialAccruedLiability

$ 913,948 785,933 799,640 535,463 404,506 ( 168,476 ) ( 443,905 ) 378,323 1,711,719 N/A 1,051,587 4,269,568 5,453,221 4,980,831 4,729,160 4,907,685 3,366,064

Funded Ratio

84.9% 88.2% 89.5% 93.8% 95.8% 101.6% 103.9% 97.2% 88.8% N/A 95.0% 81.0% 79.0% 81.9% 84.1% 84.7% 90.2%

Covered Payroll

$ 3,667,985 3,999,384 4,107,704 4,350,104 4,538,108 4,788,456 5,104,968 5,240,280 5,628,600 N/A 5,876,784 6,037,896 6,130,152 5,761,596 5,773,428 5,768,880 5,593,628

UnfundedActuarialAccrued

Liability as aPercentage of

Covered Payroll

24.9% 19.6% 19.5% 12.3% 8.9% ( 3.5% ) ( 8.7% ) 7.2% 30.4% N/A 17.9% 70.7% 89.0% 86.4% 81.9% 85.1% 60.2%

(1) Actuarial accrued liability determined under the Entry Age Normal Cost Method for 2003 and prior. Beginning January 1, 2004, the actuarial cost method was changed to the Aggregate Cost Method. The Schedule of Funding Progress was not required for this method according to GASB 25. The Aggregate Cost Method does not identify and separately amortize unfunded actuarial liabilities. GASB 50 requires plans using an aggregate funding method to display the funded status using the Entry Age Normal Cost Method.

SUPPLEMENTARY INFORMATION

Northern Water 36

Non-GAAP Budgetary Basis

Operating revenues Water assessments Charges for services Other operating revenues

Operating revenues

Operating expenses Operations and maintenance Administrative services Engineering services

Operating expenses

Operating expenses over revenues

Nonoperating revenues/receipts Property and specific ownership taxes Earnings on investments Intergovernmental Other nonoperating revenues, net Interfund loan receivable principal receipts Bond issuance proceeds

Nonoperating revenues/receipts

Nonoperating expenses/expenditures Interest expense Intergovernmental subgrantee payments Capital purchases and projects Long-term debt principal payments

Nonoperating expenses/expenditures

Revenues/receipts over (under) expenses/expenditures

Increase (decrease) to reconcile budgetary basis to GAAP basis Interfund loan receivable principal receipts Long-term debt principal payments Capital outlay Depreciation Bond issuance proceeds



Schedule of Revenues and Expenses, Budget to ActualDistrict Enterprise Fund

Budget

$ 6,036,391 4,971,171 9,265,019

20,272,581

14,700,201 10,062,612 5,737,759

30,500,572 ( 10,227,991 )

15,169,626 53,880 - 200,000 285,051 -

15,708,557

534,138 - 992,353 1,157,603

2,684,094

$ 2,796,472

VariancePositive

(Negative)

$ 878,807 ( 312,745 ) ( 7,428,817 )

( 6,862,755 )

2,608,356 3,847,462 665,642

7,121,460

258,705

399,423 153,254 1,787,608 833,784 ( 91,614 ) -

3,082,455

97,022 ( 1,259,635 ) 248,361 -

( 914,252 )

$ 2,426,908

Actual

$ 6,915,198 4,658,426 1,836,202

13,409,826

12,091,845 6,215,150 5,072,117

23,379,112

( 9,969,286 )

15,569,049 207,134 1,787,608 1,033,784 193,437 -

18,791,012

437,116 1,259,635 743,992 1,157,603

3,598,346

5,223,380

( 193,437 ) 1,157,603 743,992 ( 1,601,341 ) -

$ 5,330,197


2013Actual

$ 6,238,971 6,433,419 9,322,661

21,995,051

12,321,947 5,463,841 4,614,863

22,400,651

( 405,600 )

15,217,883 193,816 - 235,503 - 9,855,000

25,502,202

684,506 - 9,863,442 14,634,632

25,182,580

( 85,978 )

- 14,634,632 9,863,442 ( 1,294,180 ) ( 9,855,000 )

$ 13,262,916

Northern Water 37


Operating revenues Assessments

Operating expenses Operations, maintenance, engineering and administrative Operating revenues over (under) expenses

Nonoperating revenues/receipts Earnings on investments Intergovernmental Use of right of way Capital contributions


Nonoperating expenses/expenditures Capital purchases and projects Participant gain on use of right of way Refund of contributed capital


Revenues/receipts over (under) expenses/expenditures

Increase (decrease) to reconcile budgetary basis to GAAP basis Capital purchases and projects Depreciation

Decreases in net position


Budget

$ 871,626

1,021,626

( 150,000 )

- - - 726,204

726,204

726,204 - -

726,204

( $ 150,000 )

Actual

$ 879,096

991,029

( 111,933 )

165 174,654 - 390,000 564,819

522,027 - -

522,027

( 69,141 )

522,027 ( 1,646,748 )

( $ 1,193,862 )

VariancePositive

(Negative)

$ 7,470

30,597

38,067

165 174,654 - ( 336,204 ) ( 161,385 )

204,177 - -

204,177

$ 80,859


2013Actual

$ 1,010,986

918,841

92,145

158 - 906,507 799,304

1,705,969

262,869 702,165 204,342

1,169,376

628,738

262,869 ( 1,647,233 )

( $ 755,626 )

Schedule of Revenues and Expenses, Budget to ActualSouthern Water Supply Project Water Activity Enterprise Fund

Northern Water 38


Operating revenues Assessments

Operating expenses Operations, maintenance, engineering and administrative

Operating revenues over expenses

Nonoperating revenues Earnings on investments

Nonoperating expenses Other nonoperating revenues (expenses), net

Revenues over expenses

Decrease to reconcile budgetary basis to GAAP basis Depreciation

Decreases in net position


Schedule of Revenues and Expenses, Budget to ActualPleasant Valley Pipeline Water Activity Enterprise Fund

Budget

$ 128,559

128,559

-

-

-

$ -

Actual

$ 81,655

74,753

6,902

12

( 5,603 )

1,311

( 744,579 )

( $ 743,268 )

VariancePositive

(Negative)

( $ 46,904 )

53,806

6,902

12

( 5,603 )

$ 1,311


2013Actual

$ 93,492

93,356

136

12

-

148

( 744,069 )

( $ 743,921 )

Northern Water 39


Nonoperating revenues/receipts Capital contributions Earnings on investments


Nonoperating expenditures Capital outlay

Nonoperating revenues/receipts under nonoperating expenditures

Increase to reconcile budgetary basis to GAAP basis Capital outlay



Budget

$ 1,000,000 -

1,000,000

1,903,192

( $ 903,192 )

VariancePositive

(Negative)

$ 500,000 58

500,058

146,194

$ 646,252


2013Actual

$ 1,000,000 131

1,000,131

1,406,825

( 406,694 )

1,406,825

$ 1,000,131

Schedule of Revenues and Expenses, Budget to ActualNorthern Integrated Supply Project Water Activity Enterprise Fund

Actual

$ 1,500,000 58

1,500,058

1,756,998

( 256,940 )

1,756,998

$ 1,500,058

Northern Water 40

Operating revenues Energy revenue Other operating revenues

Operating revenues

Operating expenses Operations, maintenance, engineering and administrative

Operating revenues over expenses

Nonoperating revenues Earnings on investments

Nonoperating expenses/expenditures Interest expense Capital outlay Debt principal payments


Nonoperating revenues under nonoperating expenses/expenditures

Revenues over (under) expenses/expenditures

Increase (decrease) to reconcile budgetary basis to GAAP basis Debt principal payments Capital outlay Depreciation



Schedule of Revenues and Expenses, Budget to ActualNorthern Water Hydropower Water Activity Enterprise Fund

VariancePositive

(Negative)

( $ 142,275 ) 230

( 142,045 )

84

( 141,961 )

1,075

171 - -

171

1,246

( $ 140,715 )

Actual

$ 480,309 230

480,539

242,136

238,403

1,075

129,796 - 277,397

407,193

( 406,118 )

( 167,715 )

277,397 - ( 156,974 )

( $ 47,292 )

Budget

$ 622,584 -

622,584

242,220

380,364

-

129,967 - 277,397

407,364

( 407,364 )

( $ 27,000 )

Year ended September 30, 2014 Year endedSeptember 30,

2013Actual

$ 625,371 -

625,371

251,502

373,869

2,296

98,613 59,750 82,313

240,676

( 238,380 )

135,489

82,313 59,750 ( 155,604 )

$ 121,948

Northern Water 41

This part of Northern Water’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information and supplementary information says about Northern Water’s overall financial health.

Table of Contents PageNorthern Water Facilities, Colorado-Big Thompson Project Facilities and Northern Water Boundaries 42

Financial Trends These schedules contain trend information to help the reader understand how Northern Water’s financial performance has changed over time. Net Position by Component 44 Changes in Net Position 46 Historical C-BT Joint Operations and Maintenance Costs - District Enterprise Fund 48

Revenue Capacity(1)

These schedules on property taxes, assessments and charges for services contain information to help the reader assess Northern Water’s primary revenue sources. Property Taxes - District Enterprise Fund Property Tax Levies and Collections 49 Assessed and Estimated Actual Value of Taxable Properties 50 Property Tax Collections by County 52 Largest Corporate Taxpayers by Assessed Valuation 53 Assessments Assessments, Charges for Services and Energy Revenue 54 Largest Water Allotment Contract Holders By Acre-foot Units - District Enterprise 56 By Assessment 57 Ownership by Water Allotment Contract Class - District Enterprise 58 Open and Fixed-Rate Water Allotment Contracts - District Enterprise 59 Historical Representative Market Prices per Acre-Foot Unit - District Enterprise 60 Historical Open-Rate Water Assessment Charges - District Enterprise Fund 61

Debt Capacity This schedule presents information to help the reader assess the affordability of Northern Water’s enterprise funds current levels of outstanding debt and their ability to issue additional debt in the future. Statistics of Outstanding Debt by Type 62

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which Northern Water’s financial activities take place. Population and Economic Statistics 64 Largest Employers by Principal Municipalities Served by Northern Water 66 Population of Ten Largest Municipalities in Northern Water Boundaries 69

Operating Information These schedules contain information about Northern Water’s operations and resources to help the reader understand how Northern Water’s financial information relates to the services it provides and the activities it performs. District Enterprise C-BT Water Deliveries 70 Historical C-BT Water Delivery Quotas 71 Capital Assets by Enterprise Fund 72 C-BT Water Conveyance, Storage Reservoirs and Pump Stations - District Enterprise 74 Northern Water Employees by Department 75 Northern Water Employees 76General Information 77Contact Information 78

Sources: Unless otherwise noted, the statistical information is derived from the Comprehensive Annual Financial Reports (CAFRs), underlying accounting, allotment and operational information of Northern Water.(1)Since Northern Water is a regional water organization it does not present overlapping information for property tax rates and debt.

Statistical Information

Northern Water 42

Northern Water Facilities, Colorado-Big Thompson Project Facilities and Northern Water Boundaries

Boxeld er

Creek

Lone Tree Creek

Cro

w Cre

ek

Box

e lder

Cree

k

Big Thompson River

North St. Vrain River

St. Vrain

Rive

r

SouthSt. Vrain

River

LefthandCree

k

South Boul der Creek

Coal Cre

ek

RalstonCreek

Clear Creek

Bear Creek

North

Fo rkSouth

Platte River

Laramie

River

MichiganRiver

Illinois

River

Mu

ddyCreek

Willow

Cr eek

Nor th

Fork

Colorado

Ri ver

Fra ser

River

St.

Loui

sCr

eek

Willia m

sFork

River

BlueRiver

Estes Park

Granby

DillonSilverthorne

Boulder

Longmont

Loveland

MARY'SLAKE

LAKEESTES PINEWOOD

RESERVOIRCARTERLAKE

HORSETOOTHRESERVOIR

Superior

Hudson

DenverMetroArea

Colorado

River

E L B E RT

A R A P A H O E

A D A M S

L A R I M E R

BOULDER

G I L P I N

J E F F E R S O N

C L E A RC R E E K

S U M M I T

G R A N D

J AC K S O NContinental Div i d e

Contin

ental

Divi

de

76

70

70

70

36

85

W Y O M I N GC O L O R A D O

SHADOWMOUNTAINRESERVOIR GRAND

LAKE

C anadianRiver

14

125

FLATIRONRESERVOIR

66

119

Arapaho

Creek

BoulderCre ek

GREENMOUNTAINRESERVOIR

287

287

Northern WaterColorado-Big Thompson Project

Facilities and Northern Water Boundaries

WILLOW CREEKRESERVOIR

WINDYGAPRESERVOIR

LAKEGRANBY

GRANDLAKESHADOW MOUNTAIN

RESERVOIRRocky

MountainNational

Park

Granby

GrandLake

WINDY GAPPUMP PLANT

WATCHABLE WILDLIFE AREA

GRANBY PUMP CANAL

WEST PORTAL

SHADOWMOUNTAINDAM

GRANBYDAM

FARRPUMPPLANT

ALVA B. ADAMS TUNNEL

WINDY GAP PIPELINE

WILLOW CREEKPUMP CANAL & PUMP PLANT

WillowCree

k

Fraser River

Colorado R iv er

East Inl et

No

rth

Inle

t

Nort

hFo

rkC

olor

ado

Riv er

1 0 1 2 3 4

Scale of Miles (Approximate)

64

34

34

40

125

34

LAKEGRANBY

GrandLake

34

14

14

3434

West Slope CollectionSystem

40

125

9

40

See inset upper left

See inset lower right

40

Cache la Poudre River

52

Louisville

Fort Lupton

N

Troublesome

Creek

Lower LathamReservoir

MiltonReservoir

Boyd Lake

Horse CreekReservoir

Barr Lake

Cherry CreekReservoir

ChatfieldReservoir

Ralston Reservoir

Standley Lake

BarkerReservoir

GrossReservoir

Ralph PriceReservoir

ChambersLake

StrawberryLake

MonarchLake

SeamanReservoir

Cobb Lake

DouglasReservoir

WindsorReservoir

Black HollowReservoir

Terry Lake

DillonReservoir

Williams ForkReservoir

WolfordMountainReservoir

287

85

Greeley

RockyMountainNational

Park

z zCache la

Poudre River

S

outh

Fork Cache la Poudre

River

ALVA B. ADAMS TUNNEL 56

BROOMFIELD

Broomfield

Lafayette

BOULDERRESERVOIR

287

DenverInternational

Airport

36

25

E470

E470

470

North Fork C

ache la Poudre River

NORTHERN WATERHEADQUARTERS

Berthoud25

Fort Collins

UnionReservoir

25

402

Columbine Creek

ErieKremmling

40

WINDY GAP RESERVOIR

WILLOWCREEKRESERVOIR

MuddyPass

Sout

h

Pla

tte

Riv

er

Sou

th

Pl

atte

River

Little Thompson River

Long Draw Reservoir

Joe Wright Reservoir

Beeb

ee

Dra

w

Northern Water 43

Wildcat Creek

Paw

nee

Cre ek

Cedar Cre ek

Frenchman Cree k

Beav

erC

reek

Ba

dger

Cree

k.

Bij

ouC

ree

k

Kio

wa

Creek

Sterling

Julesburg

SouthPlatte River

SouthPlatte

RiverS E D G W I C K

P H I L L I P S

L O G A N

W A S H

M O R G A N

W E L D

N E B R A S K A

C O L O R A D O

Cottonwood Creek

14 14

34

76

34

76

0 5 10 15 20


0 5 10 15 20


CanalPipeline/ConduitTunnelDamPower PlantPump Plant

Legend

JA Dahlstrom 06/01 revised 01/10

Little

Thompson River

Nor th St. Vrain River

St. VrainRiver

South

St. VrainRive

r

LefthandCree

k

Boulder

Longmont

Lyons

Berthoud

FortLupton

Loveland Greeley

RockyMountainNationalPark

MARY'SLAKE

Mary's Lake

Shadow Mountain Reservoir

Green Mountain Reservoir

Windy Gap Reservoir

Grand Lake

Lake Granby

Willow Creek Reservoir Lake Estes

Pinewood Reservoir

FlatironReservoir

HorsetoothReservoir

Carter LakeBoulderReservoir

LAKE ESTES

PINEWOODRESERVOIR

FLATIRONRESERVOIR

HORSETOOTHRESERVOIR

BOULDERRESERVOIR

ADAMSTUNNEL

BOULDERCREEKSUPPLYCANAL

SOUTH PLATTESUPPLY CANAL

BOULDERFEEDERCANAL

SOUTHERN WATERSUPPLY PROJECT PIPELINE

PLEASANT VALLEY PIPELINE

to Fort Morgan

ST. VRAINSUPPLYCANAL

ST. VRAINSUPPLYCANAL

HANSENSUPPLYCANAL

NORTHPOUDRESUPPLYCANAL

HANSENFEEDERCANAL

BOULDERFEEDERCANAL

SOUTH PLATTESUPPLY CANAL

EastPortal

HANSENSUPPLYCANAL

POLE HILLTUNNEL

OLYMPUSTUNNEL

RAMS HORNTUNNEL PROSPECT MOUNTAIN

TUNNELRATTLESNAKETUNNEL

Superior

Louisville LafayetteBo ulder Creek

Broomfield

NORTHERN WATER HEADQUARTERS

S

outh

Pla

tte

Riv

er

East SlopeDistributionSystem

C-BT Profile Map

DIXONFEEDERCANAL

Cachela

PoudreR

iver

NORTH POUDREDIVERSION TUNNEL NORTH POUDRE

SUPPLY CANAL

Estes Park

Big Thompson River

North

AdamsTunnel

feet in elevation(approximate)

7,000

6,000

5,000

8,000

9,000

Colorado River

East SlopeWest SlopeContinental Divide

SouthP

latte River

Bould e r

Creek

St.Vrain

Riv e r

Big Tho mpson

Riv er

Cache laPou d re River

Colorado-Big Thompson ReservoirsCity/TownNorthern Water BoundariesSouthern Water Supply PipelinePleasant Valley PipelineBerthoud Headquarters

6,500

HANSENFEEDERCANAL

Erie

CARTERLAKE

DILLEDIVERSIONTUNNEL

Jackson Reservoir

EmpireReservoir

PrewittReservoir

North SterlingReservoir

Jumbo Reservoir( Julesburg Reservoir)

RiversideReservoir

Fort Morgan

Duck

Creek Lewis C

reek

Denver

R io Grande River

White River South Pla tte

Riv

er

Colorado River

GrandJunction Arkansas River

Ani

mas

Ri

ver

US Index Map Colorado Index MapWA

ORMT

WY

UTNV

CA

AZNM

TX

KS

SD

ND

ID

NE

OK

CO

Ya mpa River

Map Area

Gunnison R iver

Fort Collins

Northern Water 44

September 30,Unaudited

Net position Net investment in capital assets Restricted net position Debt service Major repairs Capital projects Unrestricted net position

Net position

Net Position by Component

2014

$ 171,634,522

125,363 1,989,049 1,005,286 45,146,342

$ 219,900,562

2012

$ 167,267,534

- 1,987,672 949,872 32,173,405

$ 202,378,483

2011

$ 154,229,495

- 1,987,256 1,148,136 45,506,658

$ 202,871,545

2013(1)

$ 171,455,879

425,806 1,988,522 1,326,539 39,857,983

$ 215,054,729

(1) 2013 Opening net position restated for GASB Statement No. 65.

Northern Water 45

2010

$ 150,796,408 - 1,985,832 907,677 49,550,497

$ 203,240,414

2009

$ 151,016,881 - 1,978,579 585,293 47,723,371

$ 201,304,124

2008

$ 151,103,054 - 1,924,968 375,873 46,745,306

$ 200,149,201

2007

$ 146,407,440

- 1,902,080 794,628 47,429,370

$ 196,533,518

2006

$ 144,007,058

- 1,861,464 1,501,205 44,398,466

$ 191,768,193

2005

$ 141,996,074

- 1,846,059 1,700,630 43,209,754

$ 188,752,517

Northern Water 46

Revenues Operating revenues Assessments Charges for services(1)

Energy revenue Other operating revenues

Operating revenues

Nonoperating revenues Property and specific ownership taxes Earnings on investments Intergovernmental Other nonoperating revenues Use of right of way(2)

Gain (loss) on disposition of assets(3)

Nonoperating revenues

Revenues

Expenses Operating expenses Operations and maintenance Administrative services Engineering services Depreciation

Operating expenses

Nonoperating expenses Interest expense Intergovernmental subgrantee payments Participant gain on use of right of way(2)

Refund of contributed capital(2)

Nonoperating expenses

Expenses

Income (loss) before contributions

Capital contributions


(1) Charges for services for 2004-2006 did not include charges for the Northern Water Interdistrict Fund. Certain 2013 charges for services reclassified to other operating revenues for consistency with prior years.(2) Balances in 2013 are the result of SWSP II pipeline right-of-way transactions.(3) Included in other nonoperating revenues from 2013 forward.

Years ended September 30,Unaudited

2014 %

$ 7,875,949 23 4,658,426 14 480,309 1 1,836,432 6

14,851,116 44

15,569,049 46 208,444 1 1,962,262 6 1,028,181 3 - - - -

18,767,936 56

33,619,052 100

13,358,066 40 6,238,623 18 5,090,341 15 4,149,642 12

28,836,672 85

566,912 2 1,259,635 4 - - - -

1,826,547 6

30,663,219 91

2,955,833 9

1,890,000

$ 4,845,833

Changes in Net Position

2013 %

$ 7,343,449 18 5,133,403 13 625,371 2 10,622,677 26

23,724,900 59

15,217,883 38 196,413 - - - 235,503 1 906,507 2 - -

16,556,306 41

40,281,206 100

13,533,921 33 5,485,132 14 4,645,297 11 3,841,086 10

27,505,436 68

783,119 2 - - 702,165 2 204,342 -

1,689,626 4

29,195,062 72

11,086,144 28

1,799,304

$ 12,885,448

2012 %

$ 6,739,612 23 6,197,883 21 484,632 1 1,273,387 4

14,695,514 49

14,614,826 49 91,339 - - - 285,265 2 - - 35,879 -

15,027,309 51

29,722,823 100

12,054,637 40 9,216,199 32 4,970,541 17 3,997,207 13

30,238,584 102

980,401 3 - - - - - - 980,401 3

31,218,985 105

( 1,496,162 ) (5)

1,003,100

( $ 493,062 )

2011 %

$ 6,336,897 22 6,400,517 22 - - 1,174,792 4

13,912,206 48

14,427,014 50 150,191 1 - - 281,631 1 - - 34,053 -

14,892,889 52

28,805,095 100

11,639,603 40 9,315,195 32 4,679,940 17 4,019,615 14

29,654,353 103

1,019,611 4 - - - - - - 1,019,611 4

30,673,964 107

( 1,868,869 ) (7)

1,500,000

( $ 368,869 )

Northern Water 47

2010 %

$ 6,142,790 21 6,070,393 20 - - 1,636,640 6

13,849,823 47

15,242,950 51 203,801 1 - - 315,364 1 - - ( 20) -

15,762,095 53

29,611,918 100

10,746,757 36 8,721,734 29 4,808,126 16 3,983,907 14

28,260,524 95

1,045,104 4 - - - - - -

1,045,104 4

29,305,628 99

306,290 1

1,630,000

$ 1,936,290

2009 %

$ 6,279,168 22 5,756,767 20 - - 1,195,266 4

13,231,201 46

14,373,355 49 1,073,183 4 - - 335,733 1 - - 28,922 -

15,811,193 54

29,042,394 100

12,044,474 41 7,992,889 28 4,336,697 15 3,989,476 14

28,363,536 98

1,025,320 3 - - - - - -

1,025,320 3

29,388,856 101

( 346,462) (1)

1,501,385

$ 1,154,923

2008 %

$ 5,986,712 21 5,140,151 18 - - 1,021,135 4

12,147,998 43

14,274,285 50 1,563,837 5 - - 423,683 2 - - 132,619 -

16,394,424 57

28,542,422 100

9,817,051 34 7,505,789 26 3,541,818 13 4,040,028 14

24,904,686 87

877,568 3 - - - - - -

877,568 3

25,782,254 90

2,760,168 10

855,515

$ 3,615,683

2007 %

$ 5,753,556 20 5,299,387 19 - - 1,218,396 4

12,271,339 43

13,058,768 46 2,524,693 9 - - 521,241 2 - - 63,522 -

16,168,224 57

28,439,563 100

8,925,787 31 6,986,884 24 3,290,307 12 4,232,257 15

23,435,235 82

910,338 3 - - - - - -

910,338 3

24,345,573 85

4,093,990 15

671,335

$ 4,765,325

2006 %

$ 5,304,594 21 4,784,484 18 - - 960,830 4

11,049,908 43

12,442,308 49 1,855,429 7 - - 330,291 1 - - 102,513 -

14,730,541 57

25,780,449 100

8,765,095 34 6,836,427 27 3,153,728 12 4,372,631 17

23,127,881 90

942,028 3 - - - - 395,595 2

1,337,623 5

24,465,504 95

1,314,945 5

1,700,731

$ 3,015,676

2005 %

$ 5,733,430 24 4,736,180 19 - - 1,103,903 5

11,573,513 48

11,018,231 46 983,650 4 - - 380,029 2 - - 80,633 -

12,462,543 52

24,036,056 100

8,256,076 34 6,494,971 27 2,928,659 12 4,201,380 18

21,881,086 91

969,085 4 - - - - 501,801 2

1,470,886 6

23,351,972 97

684,084 3

1,986,163

$ 2,670,247

Northern Water 48


(1) Beginning 1986, the majority of the responsibilities for daily operations and maintenance of multipurpose projects was transferred from Reclamation to Northern Water. The amounts present Northern Water’s share of C-BT operations and maintenance costs for joint works projects maintained by Reclamation.(2) Northern Water costs incurred on joint works related to the C-BT power distribution system.(3) Costs incurred under terms of agreements whereby Northern Water shares a portion of the ditch company costs in consideration for use of the ditch company’s conveyance system.(4) Charges from Reclamation for losses in C-BT power revenue resulting from changes in the distribution pattern of C-BT water.(5) The Board adopted a September 30 year end; accordingly, the expenses reflect nine months.(6) The significant changes in costs for Western Area Power Authority (WAPA) Colorado River and Lower Boulder Ditch Company in 1990 and 1991 are the result of final costs being less than estimated recorded costs.

Historical C-BT Joint Operations and Maintenance CostsDistrict Enterprise Fund

Year

1985198619871988

1989(5)

1990(6)

1991(6)

19921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014

Reclamation(1)

$ 1,043,062 607,616 379,750 537,794 592,768 474,736 360,290 408,438 458,527 795,147 876,034 1,061,983 822,471 746,583 999,856 1,084,780 1,381,264 1,560,641 1,258,913 1,268,617 1,933,792 2,127,367 1,417,394 2,353,997 4,150,250 2,186,032 2,562,308 2,660,054 1,809,712 1,695,104

WAPA ColoradoRiver(2)

$ - 17,541 17,476 23,509 17,632 ( 11,536 ) ( 4,811 ) 30,701 72,509 127,912 13,193 - 121,323 84,044 96,154 12,100 62,100 170,219 69,421 55,975 59,283 71,809 133,184 87,912 151,287 72,784 25,862 93,421 26,472 10,156

Lower BoulderDitch

Company(3)

$ 54,607 57,515 58,879 60,647 62,748 80,665 34,303 67,720 77,370 94,330 75,160 78,058 93,142 97,874 120,554 280,099 150,772 135,425 148,829 183,015 176,078 146,736 203,812 151,007 161,432 166,147 184,213 166,809 155,247 117,984

Coal RidgeDitch

Company(3)

$ 50,969 57,316 56,172 53,107 45,000 55,329 60,579 55,728 65,058 60,000 61,384 36,999 62,655 76,220 118,947 51,170 115,872 61,201 75,598 88,676 69,467 72,541 73,607 98,269 74,253 96,361 70,148 73,910 92,945 90,630

ReclamationPower

Interference(4)

$ 21,450 21,735 14,142 8,384 9,795 14,635 14,321 17,720 21,566 35,746 41,781 36,454 43,492 47,781 45,002 48,116 58,078 59,092 66,804 64,772 54,307 57,351 88,077 78,985 81,857 68,813 68,225 87,029 77,686 84,044

Joint Operationand

MaintenanceCosts

$ 1,170,088 761,723 526,419 683,441 727,943 613,829 464,682 580,307 695,030 1,113,135 1,067,552 1,213,494 1,143,083 1,052,502 1,380,513 1,476,265 1,768,086 1,986,578 1,619,565 1,661,055 2,292,927 2,475,804 1,916,074 2,770,170 4,619,079 2,590,137 2,910,756 3,081,224 2,162,062 1,997,918

Northern Water 49


(1) Does not include delinquent tax interest or tax refunds.

Collections within the Fiscal Yearof the Levy Collections to Date

Property Tax Levies and CollectionsDistrict Enterprise Fund

Year

2005200620072008200920102011201220132014

Tax Levy forFiscal Year

$ 10,611,993 11,465,443 12,052,640 13,190,541 13,432,999 14,395,216 13,637,263 13,768,657 14,313,566 14,554,204

Amount

$ 10,502,766 11,347,877 11,924,663 12,956,920 13,098,300 14,076,445 13,442,895 13,675,941 14,217,057 14,508,847

Percentage ofLevy

99.0% 99.0% 98.9% 98.2% 97.5% 97.8% 98.6% 99.3% 99.3% 99.7%

Collections inSubsequent

Years(1)

$ 16,941 11,637 18,837 11,812 17,937 39,951 73,798 18,387 14,671 18,643

Amount

$ 10,519,707 11,359,514 11,943,500 12,968,732 13,116,237 14,116,396 13,516,693 13,694,328 14,231,728 14,527,490

Percentage ofLevy

99.1% 99.1% 99.1% 98.3% 97.6% 98.1% 99.1% 99.5% 99.4% 99.8%

$7

$8

$9

$10

$11

$12

$13

$14

$15

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Property tax collections

(millions)

Northern Water 50

Years ended September 30,Unaudited (thousands)

Assessed value Residential Commercial Industrial Agricultural Oil/Gas Natural Resources Other

Assessed value of properties(1)

Estimated actual taxable value(2)

Assessed value as a percentage of actual value

Sources: Abstract of Assessment and Summary of Levies from various County Assessor’s offices and County CAFRs.

(1) The counties assess residential property at approximately 7.96 percent of actual value and all other properties at 29 percent. Estimated actual taxable value was calculated by dividing assessed value by those percentages. Tax exempt properties are included in each property classification.(2) Tax rate at a maximum of 1.00 millage.

2014

$ 6,099,667 4,099,919 778,650 101,879 2,193,319 1,280,770

$ 14,554,204

$ 105,782,558

13.7%

2013

$ 6,074,677 3,980,603 774,364 93,038 2,062,585 1,328,299

$ 14,313,566

$ 104,724,999

13.7%

2012

$ 5,909,508 3,952,981 771,045 100,511 1,699,052 1,335,560

$ 13,768,657

$ 101,340,564

13.6%

2011

$ 5,929,482 4,052,995 823,691 98,188 1,343,270 1,389,637

$ 13,637,263

$ 101,069,535

13.5%

Assessed and Estimated Actual Value of Taxable PropertiesDistrict Enterprise Fund

Northern Water 51

2010

$ 6,086,297 3,980,277 905,459 89,250 1,931,838 1,402,095

$ 14,395,216

$ 105,112,464

13.7%

2009

$ 5,996,491 3,746,463 840,906 96,718 1,374,196 1,378,225

$ 13,432,999

$ 100,975,932

13.3%

2008

$ 5,437,141 2,730,442 957,633 369,335 1,466,788 2,229,202

$ 13,190,541

$ 95,041,653

13.9%

2007

$ 4,898,193 2,422,581 890,690 392,916 1,394,490 2,053,770 $ 12,052,640

$ 86,205,595

14.0%

2006

$ 4,659,556 2,304,554 847,296 373,773 1,326,552 1,953,712

$ 11,465,443

$ 83,545,712

13.7%

2005

$ 4,970,658 2,411,045 597,455 182,077 1,361,519 1,079,239

$ 10,601,993

$ 81,898,331

12.9%

Northern Water 52

Years ended September 30,Unaudited (thousands)

Property Tax Collections by CountyDistrict Enterprise Fund

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(thousands)

Boulder Larimer Weld Broomfield Morgan Logan Washington/Sedgwick

Northern Water 53


Taxpayer

Noble Energy

Kerr-McGee Oil & Gas Onshore LP

Xcel Energy (Public Service Company of Colorado)

Petroleum Development Corp.

Encana Oil & Gas (USA), Inc.

DCP Midstream, LP

Bonanza Creek Energy, Inc.

Kerr-McGee Gathering, LLC.

Anheuser-Busch, Inc.

EOG

Qwest

Flatiron Holding, LLC.

Agilent Technologies

International Business Machines

Amgen

Eastman Kodak

Circle Capital Longmont, LLC.

Roche Colorado Corporation

Taxable assessed value of ten largest taxpayers

Taxable assessed value of other taxpayers

Taxable assessed value of all taxpayers

2014 2005

Source: Fiscal year 2014 data taken from the counties’ 2013 CAFRs. Fiscal year 2005 data taken from the Northern Water 2005 CAFR.

Largest Corporate Taxpayers by Assessed ValuationDistrict Enterprise Fund

Rank

1

2

3

4

5

6

7

8

9

10

-

-

-

-

-

-

-

-

TaxableAssessedValuation

$ 1,551,265,612

1,129,933,753

338,120,110

270,406,669

241,796,793

147,155,680

121,795,457

105,314,600

84,853,940

84,574,816

-

-

-

-

-

-

-

-

4,075,217,430

10,478,986,570

$ 14,554,204,000

Percent of TotalTaxable

Assessed Value

10.6%

7.8

2.3

1.9

1.7

1.0

0.8

0.7

0.6

0.6

-

-

-

-

-

-

-

-

28.0

72.0

100.0%

Rank

-

-

1

-

-

-

-

-

2

-

3

4

5

6

7

8

9

10

TaxableAssessedValuation

$ -

-

230,562,410

-

-

-

-

-

91,467,060

-

74,920,400

45,037,420

41,614,290

37,914,860

36,839,540

35,937,760

33,310,360

31,664,380

659,268,480

9,952,724,520

$ 10,611,993,000

Percent of TotalTaxable

Assessed Value

- %

-

2.2

-

-

-

-

-

0.9

-

0.7

0.4

0.4

0.4

0.3

0.3

0.3

0.3

6.2

93.8

100.0%

Northern Water 54


Assessments District Fund water assessments Class B, municipalities Class D, irrigation Carry-over Class C, corporate contracts Domestic Industrial Irrigation Multi-purpose(1)

District Fund water assessments

SWSP Fund assessments PVP Fund assessments

Assessments

Charges for services(2)

Reclamation Labor, overhead and supplies

Charges for services

Energy revenue Hydropower Fund(3)

Assessments, Charges for Services and Energy Revenue

2014 %

$ 3,181,025 40 310,360 4 1,528,117 20

1,308,281 17 318,286 4 249,332 3 19,797 -

6,915,198 88

879,096 11 81,655 1

$ 7,875,949 100

$ 2,645,274 57 2,013,152 43

$ 4,658,426 100

$ 480,309 100

2013 %

$ 2,950,799 40 315,163 4 1,209,928 16

1,240,943 18 272,712 4 249,426 3 - -

6,238,971 85 - 1,010,986 14 93,492 1

$ 7,343,449 100

$ 2,666,441 52 2,466,962 48

$ 5,133,403 100

$ 625,371 100

2011 %

$ 2,676,564 42 306,431 5 744,912 12

1,136,715 18 258,328 4 251,139 4 17,717 -

5,391,806 85

867,291 14 77,800 1

$ 6,336,897 100

$ 3,079,495 52 2,878,260 48

$ 5,957,755 100

$ -

2012 %

$ 2,805,799 42 301,179 4 968,104 14

1,165,155 17 262,864 4 245,675 4 18,028 -

5,766,804 85

906,910 13 65,898 2

$ 6,739,612 100

$ 2,803,614 49 2,962,499 51

$ 5,766,113 100

$ 484,632 100

(1) Not separately detailed in 2013.(2) Charges for services do not include charges for the Interdistrict Fund and, therefore, do not reflect charges for services as shown on Changes in Net Position (page 46) for certain years.(3) Operational in 2012.

Northern Water 55

2010 %

$ 2,652,230 44 312,300 5 869,130 14

1,156,327 19 258,328 4 237,551 4 17,717 -

5,503,583 90

609,676 10 29,531 -

$ 6,142,790 100

$ 2,302,935 42 3,231,119 58

$ 5,534,054 100

$ -

2009 %

$ 2,650,888 42 307,135 5 925,975 15

1,126,025 18 250,701 4 235,235 4 17,194 -

5,513,153 88

720,408 11 45,607 1

$ 6,279,168 100

$ 2,319,168 44 2,925,971 56

$ 5,245,139 100

$ -

2008 %

$ 2,438,459 41 355,611 6 883,964 15

1,084,925 18 259,445 4 250,451 4 16,686 -

5,289,541 88

632,641 11 64,530 1

$ 5,986,712 100

$ 1,918,853 40 2,845,164 60

$ 4,764,017 100

$ -

2007 %

$ 2,461,371 43 312,017 5 749,410 13

1,003,254 18 254,526 4 248,214 4 16,120 -

5,044,912 87

568,139 10 140,505 3

$ 5,753,556 100

$ 1,477,278 33 3,016,584 67

$ 4,493,862 100

$ -

2005 %

$ 2,247,603 39 314,491 5 834,329 15

891,285 16 234,433 4 233,130 4 90,631 2

4,845,902 85

637,528 11 250,000 4

$ 5,733,430 100

$ 1,392,404 29 3,343,776 71

$ 4,736,180 100

$ -

2006 %

$ 2,180,737 41 319,036 6 789,683 15

967,841 18 243,363 5 233,541 4 15,413 -

4,749,614 89

458,010 9 96,970 2

$ 5,304,594 100

$ 1,502,508 31 3,281,976 69

$ 4,784,484 100

$ -

Northern Water 56

September 30, 2014Unaudited

Entity

North Poudre Irrigation Company

Greeley, City of

Boulder, City of

Fort Collins, City of

Broomfield, City and County of

Longmont, City of

Loveland, City of

Fort Collins-Loveland Water District


Little Thompson Water District

Ten largest allottees by acre-foot units

Other allottees

Acre-foot units

Largest Water Allotment Contract Holders by Acre-Foot UnitsDistrict Enterprise

Acre-FootUnits

40,000

22,629

21,301

18,855

12,905

12,793

12,168

11,729

9,997

9,837

172,214

137,786

310,000

Percentage of Total Acre-Foot

Units

12.9%

7.3

6.9

6.1

4.2

4.1

3.9

3.8

3.2

3.2

55.6

44.4

100.0%

Northern Water 57

Years ended September 30, Unaudited

Entity

District Fund Water Assessments Broomfield, City and County of


Fort Collins-Loveland Water District


Boulder, City of

Little Thompson Water District

Greeley, City of

Longmont, City of

Erie, Town of

Loveland, City of

Left Hand Water District

Water assessments for ten largest allottees

Other allottees

Water assessments for District Fund water allotment contract holders

SWSP Fund assessments

PVP Fund assessments

Assessment revenue

Largest Water Allotment Contract Holders by Assessment

Percentage ofTotal

Assessments

4.4%

7.2

3.4

4.4

3.8

3.4

6.1

3.9

-

3.0

2.7

42.3

42.2

84.5

11.1

4.4

100.0%

Rank

3

1

8

4

6

7

2

5

-

9

10

Percentage of Total

Assessments

5.0%

4.7

4.2

3.6

3.4

3.5

3.0

3.0

2.8

2.6

-

35.8

52.0

87.8

11.2

1.0

100.0%

Assessment

$ 391,894

369,877

328,487

279,916

270,911

275,436

239,107

230,931

224,840

208,608

-

2,820,007

4,095,191

6,915,198

879,096

81,655

$ 7,875,949

Rank

1

2

3

4

5

6

7

8

9

10

2014 2005

Assessment

$ 255,242

411,537

193,994

251,666

216,266

197,967

350,508

220,985 -

173,139

155,194

2,426,498

2,419,404

4,845,902

637,528

250,000

$ 5,733,430

Northern Water 58


(1) Class C water allotment contracts for 2014 include 60,122 irrigation units and 58,999 domestic and industrial units.

Year

2005200620072008200920102011201220132014

Class BMunicipal

136,445 140,537 141,597 143,177 146,023 146,828 148,241 148,839 149,568 149,879

Class C(1)

Public Corporation

120,347 117,955 118,919 119,607 117,969 117,595 117,265 117,557 117,919 119,121

Class DIrrigation/Individual

53,208 51,508 49,484 47,216 46,008 45,577 44,494 43,604 42,513 41,000

Acre Feet

310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000

Ownership by Water Allotment Contract ClassDistrict Enterprise

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(thousands of acre feet)

Class B, municipal Class C, public corporation Class D, irrigation/individual

Northern Water 59


Year

2005200620072008200920102011201220132014

Fixed Rate

106,839 104,501 103,154 102,389 102,070 101,810 101,497 101,286 100,406 99,862

Open Rate

203,161 205,499 206,846 207,611 207,930 208,190 208,503 208,714 209,594 210,138

Acre-FootUnits

310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000 310,000

Open and Fixed-Rate Water Allotment ContractsDistrict Enterprise

Acre-Foot Units

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(thousands of acre-foot units)

Fixed Rate - $1.50 per acre-foot unit Open Rate - rate set annually by the Board

Northern Water 60

Historical Representative Market Prices Per Acre-Foot Unit(1)

District Enterprise

(1) District allottees of C-BT water may transfer and sell their respective acre-foot units to other parties within Northern Water boundaries. These transactions are subject to rules and regulations of the Board. The above table represents data gathered by voluntary action and serves as an indicator of how the price of C-BT water has fluctuated on the open market through the years. Actual transaction prices may vary.


$0

$2,500

$5,000

$7,500

$10,000

$12,500

$15,000

$17,500

$20,000

$22,500

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Northern Water 61


(1) The District Enterprise Fund collects annual assessments on each acre-foot unit. Assessments on fixed-rate contracts are $1.50 per unit. When a unit is transferred, sold or altered, the contract is changed from the original fixed rate to an open-rate assessment. Open-rate assessments are determined annually by the Board and are summarized above. The assessments are not contingent on delivery of water and must be paid without regard to water deliveries.

Historical Open-Rate Water Assessment Charges(1)

District Enterprise Fund

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

39-58 59-64 65-66 67-74 75-81 82-83 84 85-86 87-88 89-91 92-93 94-95 96-97 98 99 00 01 02 03 04 05 06 07 08 09 10-11 12 13 14

(dollars)

Irrigation Municipal/Domestic Industrial

Northern Water 62


District Certificates of Participation(1)

Unamortized premium

Certificates of Participation

Contracts Payable to Reclamation Horsetooth Safety of Dams Pole Hill CanalRevenue-type Financing for Hydropower Colorado Water Resources and Power Development Authority

Outstanding debt

Revenue-type Financing for Hydropower Interfund loan payable

Outstanding debt and interfund loan payable Per capita(2) Per acre-foot units(3)

Percentage of personal income(4)

General Obligation Contracts Payable to Reclamation Per capita(2)

Percentage of estimated actual value of taxable properties(5)

Statistics of Outstanding Debt by TypeNorthern Water Enterprise Funds

2014

$ 7,790,000 662,543

8,452,543

3,786,026 524,014

1,833,727

$ 14,596,310

$ 4,506,563

$ 22 $ 62 N/A

$ 5 -

2013

$ 8,770,000 753,450

9,523,450

3,885,997 601,646

1,917,687

$ 15,928,780

$ 4,700,000

$ 24 $ 66 .06%

$ 5 -

2012

$ 13,380,000 86,074

13,466,074

3,980,532 676,744

2,000,000

$ 20,123,350

$ 4,700,000

$ 29 $ 80 .07%

$ 5 -

2011

$ 14,275,000 93,520

14,368,500

4,069,927 749,389

1,082,825

$ 20,270,661

$ 981,766

$ 25 $ 68 .06%

$ 6 -

(1) In 2013, balances reflect Series 2012. Prior to 2013, balances reflect Series 2002.(2) Computed by dividing debt by estimated population in Northern Water boundaries as shown on page 64.(3) Computed by dividing debt by 310,000 acre-foot units.(4) Statistical information not available for certain years. Computed by dividing debt by total personal income as shown on page 64.(5) Computed by dividing debt by Estimated Actual Taxable Value (page 50).

Northern Water 63

2010

$ 15,135,000 100,614

15,235,614

4,154,461 -

-

$ 19,390,075

$ -

$ 23 $ 62 .06%

$ 5 -

2009

$ 15,960,000 107,371

16,067,371

4,234,399 -

-

$ 20,301,770

$ -

$ 24 $ 65 .06%

$ 5 -

2008

$ 16,750,000 113,808

16,863,808

4,678,318 -

-

$ 21,542,126

$ -

$ 27 $ 69 .07%

$ 6 -

2007

$ 17,510,000 119,941

17,629,941

4,781,697 -

-

$ 22,411,638

$ -

$ 29 $ 72 .07%

$ 6 -

2006

$ 18,425,000 125,783

18,550,783

4,911,962 -

-

$ 23,462,745

$ -

$ 31 $ 75 .08%

$ 6 -

2005

$ 18,955,000 131,348

19,086,348

4,925,794 -

-

$ 24,012,142

$ -

$ 32 $ 77 .09%

$ 7 -

Northern Water 64

Population in Northern Water Boundaries(2)

Per Capita Personal Income(3)

Boulder County Fort Collins-Loveland MSA(4)

Greeley MSA(4)

Personal Income (000s)(3)


Greeley MSA(4)

Unemployment Rate(3)


Greeley MSA(4)

(1) Certain statistical information not yet available.(2) Data calculated from ESRI Population Demographics that are developed from US Census and other data sources.(3) Data from 2009 to present taken from the municipalities’ CAFRs. Prior to that time, per capita and personal income data taken from the Bureau of Economic Analysis and the unemployment rates from the U.S. Department of Labor, Bureau of Labor Statistics.(4) Metropolitan Service Area.


2014(1)

878,100

$ 56,940 N/A N/A

$ 16,417,561 N/A N/A

4.4% 5.4 7.6

2013

859,913

$ 51,893 41,311 31,657

$ 15,535,659 12,826,581 8,347,627

5.4% 6.4 8.7

2012

858,565

$ 53,352 39,767 29,986

$ 15,758,416 12,150,000 7,756,000

6.1% 6.8 9.7

Population and Economic Statistics

2011

842,494

50,095 38,109 28,447

14,786,545 11,454,000 7,232,000

6.7% 7.4 11.1

Northern Water 65

2010

842,447

49,543 37,368 27,109

14,525,373 11,150,000 6,948,000

5.7% 6.6 9.1

2009

828,350

$ 53,533 38,848 28,402

$ 15,570,648 11,378,000 7,068,000

4.2% 5.0 5.1

2008

794,616

$ 51,436 36,766 26,314

$ 14,784,185 10,541,856 6,384,960

3.8% 3.4 4.0

2007

770,563

$ 50,195 35,397 26,002

$ 14,267,458 9,968,398 6,120,013

4.3% 3.9 4.3

2006

745,714

$ 47,419 33,886 25,183

$ 13,288,729 9,353,768 5,713,299

4.9% 4.4 5.2

2005

734,114

$ 43,777 32,130 24,094

$ 12,245,662 8,747,615 5,263,522

5.0% 4.6 5.2

Northern Water 66


Largest Employers by Principal Municipalities Served by Northern Water

Source: Fiscal year 2014 data taken or calculated from the municipalities’ most recent CAFRs unless otherwise indicated. Fiscal year 2005 information taken from the 2005 Northern Water CAFR.

Boulder, City of

(1) Information for 2014 for the City of Boulder lists the largest employers in Boulder and Broomfield Counties. Employment information specific to the City of Boulder is not available for the year presented.(2) Data not available.(3) Data provided for the entire City and County of Broomfield, only a portion of which is within Northern Water boundaries.

Broomfield, City and County of(3)

2014 2005

Employers

Level 3 CommunicationsOracle Corporation (Sun Microsystems, Inc.)Hunter DouglasBall CorporationSandoz, Inc. (Geneva Pharmaceuticals)Brocade Communications Systems, Inc.Broomfield, City and County ofMWH GlobalStaples/Corporate ExpressExplorations/iam Inc.McKesson HBOCMcDATA CorporationWal-Mart Supercenter

Top ten principal employers

Employees

Number ofEmployees

3,000 1,900 787 674 601 600 600 500 500 400 - - -

9,562

29,952

Percentage ofEmployment

10.0% 6.3 2.6 2.3 2.0 2.0 2.0 1.7 1.7 1.3 - - -

31.9%

Rank

21593-8-4-67

10

Number ofEmployees

2,050 2,700 925 550 998 - 565 - 950 - 662 596 450 10,446

-(2)

Percentage ofEmployment(2)

-------------

-

Rank

123456789

10---

2014(1) 2005

Employers

University of Colorado at BoulderBoulder Valley School DistrictSt. Vrain Valley School DistrictIBM CorporationLevel 3 CommunicationsBoulder Community HospitalBall CorporationBoulder CountyExempla Good Samaritan Medical CenterLongmont United HospitalBoulder, City ofValley LabMicromotionAmgenIntrado


Employees

Rank

13-2-4-5--6789

10

Number ofEmployees

5,650 3,815 - 5,000 - 2,102 - 1,500 - - 1,230 805 600 600 580

21,882

-(2)


---------------

-

Number ofEmployees

7,500 4,133 3,806 3,400 2,500 2,350 2,160 1,902 1,400 1,265 - - - - -

30,416

166,208


4.5% 2.5 2.3 2.0 1.5 1.4 1.3 1.2 0.8 0.8 - - - - -

18.3%

Rank

123456789

10-----

Northern Water 67

Employers

JBS Swift & CompanyGreeley/Evans School District SixNorth Colorado Medical CenterUniversity of Northern ColoradoState Farm Insurance CompaniesWeld CountyGreeley, City ofBanner Health CareWal-MartAims Community CollegeEastman KodakStarTek, Inc.


Employees

Rank

123456789

10--

Number ofEmployees

4,307 2,429 1,966 1,922 1,338 1,327 1,205 922 745 621 - -

16,782

45,382


9.5% 5.4 4.3 4.2 3.0 2.9 2.7 2.0 1.6 1.4 - -

37.0%

Rank

1354278--

1069

Number ofEmployees

2,900 2,180 1,866 1,925 2,340 1,389 930 - - 750 1,650 840

16,770

-(2)


-

--------

-

-

2005

Greeley, City of

2014

Employers

Colorado State UniversityPoudre R-1 School DistrictPoudre Valley Health SystemFort Collins, City ofLarimer CountyHewlett PackardCenter PartnersWoodward GovernorEmployment Solutions Personnel ServiceAvagoAgilent TechnologiesWal-MartAdvanced EnergyAnheuser-Busch


Employees


2014 2005

Rank

12345678

910----

Number ofEmployees

7,317 4,025 3,078 1,889 1,566 1,312 1,299 1,291

1,242 852 - - - -

23,871

90,420


8.1% 4.5 3.4 2.1 1.7 1.5 1.4 1.4

1.4 0.9 - - - -

26.4%

Rank

134672--

--589

10

Number ofEmployees

7,945 3,014 2,785 1,864 1,467 3,182 - - - - 2,454 909 825 760

25,205

-(2)


--------

-----

-

Northern Water 68

Largest Employers by Principal Municipalities Served by Northern WaterSeptember 30,Unaudited

Employers

St. Vrain Valley School DistrictSeagate TechnologyLongmont United HospitalLongmont, City ofIntradoDigitalGlobeAmgenCircle Graphics, Inc.Federal Aviation AdministrationCrocsConAgra FoodsMaxtor ColoradoMcLane Western


Employees

Longmont, City of

2014

Rank

123456789

10---

Rank

13267-8-

10-459

Number ofEmployees

3,538 1,245 1,244 835 793 762 707 545 488 433 - - -

10,590

49,953

Number ofEmployees

3,400 1,200 1,212 814 754 - 600 - 380 - 950 850 545

10,705

-(1)


7.0% 2.5 2.5 1.7 1.6 1.5 1.4 1.1 1.0 0.9 - - -

21.2%


------------

-

2005

Source: Fiscal year 2014 data taken or calculated from the municipalities’ most recent CAFRs. Fiscal year 2005 information taken from the 2005 Northern Water CAFR.

(1) Data not available.

Employers

Thompson School District R2-JLoveland, City ofWal-Mart Distribution CenterHach CompanyMcKee Medical CenterMedical Center of the RockiesWoodward GovernorAgrium/Crop Production ServicesKroll Factual DataAgilent TechnologiesWaterpik TechnologiesGroup PublishingGE Global Controls ServiceLPR Construction


Employees

Rank

123456789

10----

Rank

26354----1789

10

Number ofEmployees

2,036 958 950 800 708 636 500 472 350 300 - - - -

7,710

41,137

Number ofEmployees

2,000 678 1,087 793 728 - - - - 2,800 460 325 250 243

9,364

-(1)


5.0% 2.3 2.3 1.9 1.7 1.6 1.2 1.2 0.9 0.7 - - - -

18.8%


--------------

-

2014 2005

Loveland, City of

Northern Water 69

Population of Ten Largest Municipalities in Northern Water BoundariesSeptember 30, 2014Unaudited

Municipalities

Fort Collins, City ofGreeley/Evans, Cities ofBoulder, City ofLongmont, City ofLoveland, City ofBroomfield, City and County of(1)

Lafayette, City ofWindsor, Town ofErie, Town ofLouisville, City of

Population in ten largest municipalities served by Northern WaterOther municipalities and unincorporated areas

Estimated population within Northern Water boundaries

Population Percentage

152,200 17.3% 115,800 13.2 102,800 11.7 90,200 10.3 71,200 8.1 59,500 6.8 26,700 3.0 21,400 2.4 20,100 2.3 19,500 2.3

679,400 77.4 198,700 22.6

878,100 100.0%

(1) Only a portion of the Broomfield population shown is within Northern Water boundaries.

0

15

30

45

60

75

90

105

120

135

150

165

Fort Collins Greeley/Evans Boulder Longmont Loveland Broomfield Lafayette Windsor Erie Louisville

(thousands)

Northern Water 70


Agricultural

Year

2005200620072008200920102011201220132014

Historical averagefrom 1957

Deliveries

122,439 137,112 125,788 128,676 122,216 150,534 131,334 167,375 47,907 37,248

167,404

Percentage

63.9% 60.5% 58.8% 59.1% 64.9% 67.2% 61.6% 57.1% 31.9% 30.9%

78.8%

Deliveries

69,073 89,644 88,276 89,206 66,146 73,331 81,836 125,534 102,447 83,255

45,030

Percentage

36.1% 39.5% 41.2% 40.9% 35.1% 32.8% 38.4% 42.9% 68.1% 69.1%

21.2%

WaterDeliveries

191,512 226,756 214,064 217,882 188,362 223,864 213,170 292,909 150,354 120,503

212,434

C-BT Water DeliveriesDistrict Enterprise

Municipal/Industrial

0

50

100

150

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Agriculture and municipal/industrial water deliveries

Agricultural deliveries Municipal/industrial deliveries

(thousands of acre feet)

Northern Water 71


(1) In 2002 the Board began issuing an initial quota for the water year (November-October) in November, reviewing the quota in April and then updating the April quota with supplements as needed.

Historical C-BT Water Delivery Quotas(1)

District Enterprise

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

57585960616263646566676869707172737475767778798081828384858687888990919293949596979899000102030405060708091011121314

years

Supplemental quotaApril quotaInitial quota

Northern Water 72


District Non-depreciable capital assets Land, easements and water rights Construction in progress Depreciable capital assets Buildings and improvements Operations equipment Computer and office equipment Capital assets Less accumulated depreciation Buildings and improvements Operations equipment Computer and office equipment Accumulated depreciation District capital assets, net

Southern Water Supply Project Non-depreciable capital assets Land, easements and water rights(1)

Construction in progress Depreciable capital assets Water pipeline and equipment Capital assets Less accumulated depreciation Water pipeline and equipment SWSP capital assets, net

Pleasant Valley Pipeline Non-depreciable capital assets Land and easements Depreciable assets Water pipeline and equipment Capital assets Less accumulated depreciation Water pipeline and equipment PVP capital assets, net

Northern Integrated Supply Project Non-depreciable capital assets Construction in progress

Hydropower(2)

Non-depreciable capital assets Construction in progress Depreciable capital assets Hydropower plant Capital assets Less accumulated depreciation Hydropower plant Hydropower capital assets, net

Capital assets, net

(1) Included with water pipeline and equipment prior to 2013.(2) Established 2011 and operational 2012.

Capital Assets by Enterprise Fund

2014

$ 82,027,587 283,363

18,594,598 5,371,761 8,172,229 114,449,538

( 8,396,388 ) ( 5,079,024 ) ( 3,605,688 ) ( 17,081,100 ) 97,368,438

5,232,983 1,607,625

69,526,213 76,366,821

( 31,164,625 ) 45,202,196

934,330

29,732,205 30,666,535

( 7,433,051 ) 23,233,484

14,490,801

-

6,278,945 6,278,945

( 364,405 ) 5,914,540

$ 186,209,459

2013

$ 81,829,055 54,526

18,732,858 5,419,499 8,040,845 114,076,783

( 7,790,187 ) ( 5,071,837 ) ( 2,973,089 ) ( 15,835,113 ) 98,241,670

5,232,983 1,113,518

69,499,494 75,845,995

( 29,519,078 ) 46,326,917

934,330

29,739,846 30,674,176

( 6,690,510 ) 23,983,666

12,733,803

-

6,278,945 6,278,945

( 207,431 ) 6,071,514

$ 187,357,570

2012

$ 78,931,481 3,140,242

18,732,858 5,343,262 3,055,626 109,203,469

( 6,977,380 ) ( 5,001,649 ) ( 2,707,585 ) ( 14,686,614 ) 94,516,855

- 850,649

74,732,477 75,583,126

( 27,871,845 ) 47,711,281

934,330

29,732,205 30,666,535

( 5,946,441 ) 24,720,094

11,326,978

-

6,219,195 6,219,195

( 51,827 ) 6,167,368

$ 184,442,576

2011

$ 69,311,486 1,547,231

18,721,544 5,234,578 3,421,254 98,236,093

( 6,122,579 ) ( 4,912,530 ) ( 3,027,395 ) ( 14,062,504 ) 84,173,589

- 811,089

74,742,404 75,553,493

( 26,013,426 ) 49,540,067

934,330

29,732,205 30,666,535

( 5,203,136 ) 25,463,399

10,159,460

2,255,182

- 2,255,182

- 2,255,182

$ 171,591,697

Northern Water 73

2010

$ 66,458,165 1,598,488

18,721,544 5,097,270 3,208,332 95,083,799

( 5,265,105 ) ( 4,814,833 ) ( 2,674,394 ) ( 12,754,332 ) 82,329,467

- 680,473

74,735,178 75,415,651

( 24,141,257 ) 51,274,394

934,330

29,732,205 30,666,535

( 4,459,831 ) 26,206,704

9,029,413

-

- -

- -

$ 168,839,978

2009

$ 65,761,333 1,091,613

18,378,384 5,143,814 2,855,266 93,230,410

( 4,473,323 ) ( 4,752,321 ) ( 2,360,386 ) ( 11,586,030 ) 81,644,380

- 543,420

74,730,114 75,273,534

( 22,282,770 ) 52,990,764

934,330

29,732,205 30,666,535

( 3,716,525 ) 26,950,010

7,859,047

-

- -

- -

$ 169,444,201

2008

$ 53,782,601 11,270,607

18,164,932 5,271,870 2,844,942 91,334,952

( 3,750,182 ) ( 4,683,622 ) ( 2,390,477 ) ( 10,824,281 ) 80,510,671

- 491,539

74,730,114 75,221,653

( 20,393,734 ) 54,827,919

934,330

29,732,205 30,666,535

( 2,973,220 ) 27,693,315

6,436,492

-

- -

- -

$ 169,468,397

2007

$ 53,447,573 4,054,436

18,195,343 5,484,826 3,071,321 84,253,499

( 3,052,165 ) ( 4,616,479 ) ( 2,583,735 ) ( 10,252,379 ) 74,001,120

- 350,285

74,709,126 75,059,411

( 18,504,698 ) 56,554,713

934,330

29,732,205 30,666,535

( 2,229,915 ) 28,436,620

5,468,574

-

- -

- -

$ 164,461,027

2006

$ 53,187,838 -

18,170,759 5,278,870 2,697,111 79,334,578

( 2,320,652 ) ( 4,256,585 ) ( 2,284,262 ) ( 8,861,499 ) 70,473,079

- 251,653

74,703,914 74,955,567

( 16,617,114 ) 58,338,453

934,330

29,732,205 30,666,535

( 1,486,610 ) 29,179,925

4,188,139

-

- -

- -

$ 162,179,596

2005

$ 51,550,030 -

18,146,436 5,077,190 2,806,987 77,580,643

( 1,583,722 ) ( 3,895,939 ) ( 2,256,849 ) ( 7,736,510 ) 69,844,133

- 2,387,343

72,390,613 74,777,956

( 14,727,679 ) 60,050,277

934,330

29,732,205 30,666,535

( 743,305 ) 29,923,230

2,910,539

-

- -

- -

$ 162,728,179

Northern Water 74


Water Conveyance

Alva B. Adams TunnelEast Slope Power Conduit SystemCanals, West SlopeCanals, East Slope St. Vrain Supply Boulder Feeder Boulder Creek Supply South Platte Supply Charles Hansen Feeder Charles Hansen Supply North Poudre Supply Dixon Feeder

Water conveyance

C-BT Water Conveyance, Storage Reservoirs and Pump Stations(1)

District Enterprise

Length (miles)

13.1 18.5 6.3

9.8 13.2 2.5 32.2 13.2 5.6 12.5 3.0

129.9

Capacity (acre feet)StorageReservoirs

West Slope Grand Lake(3)

Green Mountain Lake Granby Willow Creek Shadow MountainEast Slope Mary’s Lake Lake Estes Pinewood Flatiron Carter Lake Boulder Horsetooth

Storage reservoirs

Shoreline (miles)

4.5 19 40 7 8

1 4 3 2 12 4 25

125

Total

68,600 154,645 539,758 10,553 17,354

927 3,068 2,181 760 112,230 13,270 156,735

1,080,081

Active(2)

N/A 146,779 465,568 3,329 1,839

N/A N/A N/A N/A 108,924 11,970 149,732

888,141

Capacity(cfs)

625 200 200 230 550 1,500 250 8

Pump Stations

FarrWillow CreekFlatiron Reservoir

Pump stations

Pump StationCapacity

(cfs)

600400370

1,370

Rated Lift (feet)

186175240

601

InstalledCapacity

(horsepower)

18,00010,00013,000

41,000

(1) The capacity information for the C-BT has remained the same since the inception of the project in 1957.(2) Active capacity is the amount of water that can be stored and later released for beneficial purposes. In most reservoirs, some amount of the stored water cannot be evacuated due to the placement of outlet works. The water that cannot be evacuated is sometimes called “dead storage.”(3) Natural lake.

Northern Water 75

Management

Operations Division Collection Distribution Facilities & Equipment Information Technology(1)

Emergency & Security(2)

Instrumentation Control & Electrical Engineering

Operations

Engineering Division Project Management Water Resources GIS(1)

Civil Support(3)

Water Quality Field Services(4)

Real Estate(2)

South Platte Special Projects Irrigation Management(4)

Engineering

Administrative Division Human Resources and Administrative Services Communications & Records Financial Services

Administrative

Full-time regular employees

2014

5

18 18 9 11 1

5

62

4 4 - - 3 6 - 1 6

24

8 8 6

22

113

2013

5

18 18 10 11 1

5

63

4 4 - - 3 6 - 1 6

24

8 8 6

22

114

2012

5

19 17 10 11 1

5

63

3 4 - 1 3 5 1 1 6

24

8 9 5

22

114

2011

5

19 17 10 11 1

5

63

3 4 - 1 3 5 1 1 6

24

8 9 5

22

114

2010

5

19 17 10 11 1

7

65

3 4 - 1 2 5 1 1 6

23

8 9 5

22

115

2009

5

18 17 10 8 1

6

60

3 4 4 1 2 4 1 1 5

25

8 9 5

22

112

2008

5

19 17 10 7 1

6

60

3 4 4 1 1 3 1 1 5

23

7 8 5

20

108

2007

5

19 17 9 7 4

2

58

2 4 4 2 1 4 1 1 4

23

7 9 5

21

107

2006

3

19 17 9 5 3

2

55

3 4 3 2 2 3 1 1 5

24

6 7 5

21

100

2005

2

20 17 9 5 3

2

56

3 5 3 2 2 - 1 1 9

26

6 7 5

18

102

(1) In 2010, GIS was consolidated into Information Technology.(2) In 2013, Real Estate and Emergency & Security were combined. In 2008, Instrumentation Control & Electrical Engineering was divided into two departments - Emergency & Security and Instrumentation Control & Electrical Engineering.(3) In 2013, Civil Support was consolidated into Distribution.(4) In 2006, Irrigation Management was divided into Irrigation Management and Field Services.


Northern Water Employees by Department

Northern Water 76

Zach Allen

Jon Altenhofen

Dave Anderson

Steve Anderson

Cody Arnold

Dennis Baker

Dirk Banks

Scott Bartling

Gary Beason

Seth Bell

Linda Bennett

Joel Berg

Alan Berryman

Wayne Bidell

Judy Billica

Sean Blue

Ron Boyd

Carl Brouwer

Craig Brueske

John Budde

Roger Burns

Don Carlson

Mike Carmon

June Caves

Joseph Clark

Deirdre Cochran

Marilyn Conley

Brandon Coombs

Ty Cooper

Mark Crookston

Don Cumpsten

Blane Day

Wade Dones

Mark Dowling

Jeff Drager

Doris Farnham

Mike Fiscus

Nada Fisher

Brian Flockhart

Kenneth Fox

Will Frank

Craig Friar

Renee Geha

Jerry Gibbens

Patti Gill

Veronica Gomez

Curt Gramberg

Carlie Grine

Sam Guthrie

Alan Halley

K.C. Hammer

John Hanick

Trev Hardle

Eric Harrington

Craig Hartig

Mary Hattendorf

Joshua Hill

Tom Hines

Denny Hodgson

Josh Jarbo

Amy Johnson

Joe Jones

Colleen Krabbenhoft

Mary Krakow

Chad Kuhnel

Brad Leach

Daniel Lee

Gage Lee(1)

Minerva Lee

Lyndsey Lucia

Tim Lynch

Alfred Manguso

Dave Martin

Dave McLimore

Katie Melander

Megan Monson

Trip Mooney

Rebecca Morris

Ed Motz

Jim Nguyen

Josh Pelle(1)

Lu Pena

Brian Perkins

Christine Pigg

Andy Pineda

Doug Prewitt

Karen Rademacher

Sherri Rasmussen

Robert Robinson(1)

Doug Rogakis

Rebecca Romero

Richard Schadegg

Martin Schroeder

Luke Shawcross

Bill Shearer

Greg Silkensen

Judy Skram

Sarah Smith

Dennis Stafford

Jen Stephenson

Rick Stewart

Julie Stoupa

Jim Struble

Cliff Sullivan

Kirk Tellinghuisen

Tyler Terryberry

Noble Underbrink

Mathew Urista

Esther Vincent

Ben Von Thaden

Kevin Waller

Bernice Weber

Brian Werner

Bruce Wild

Eric Wilkinson

Dusty Williams

Brad Wind

Jason Winter

Jeremy Worth

Brian Young

Mark Ziegler

September 30, 2014Northern Water Employees

(1) New employee since September 30, 2014.

Northern Water 77


Authority

Date of Formation

Governing Body

Organization

Purpose

Area

Historical Average Annual Deliveries

Water Conservancy Act

September 20, 1937

Northern Water is governed by a 12-member Board of Directors, which is appointed by the presiding District Court Judges of four of the fivejudicial districts located wholly or partially within Northern Waterboundaries.

Northern Water is a public body political and corporate, a quasi-municipal entity and a political subdivision of the State of Colorado.

Northern Water was organized to acquire water; to obtain rights-of-way for certain water works; to provide construction for water facilities; to incur contractual or bond indebtedness; to administer, operate and maintain physical works; to conserve, control, allocate and distribute water supplies; and to derive the revenues needed to accomplish itspurposes.

1,600,000 acres

212,434 acre feet

General Information

Northern Water 78

Offices

Northern Colorado Water Conservancy District220 Water Avenue

Berthoud, Colorado 80513(800) 369-7246

FAX: (877) 851-0018www.northernwater.org

General Counsel

Trout, Raley, Montaño, Witwer & Freeman, P.C.1120 Lincoln Street, Suite 1600Denver, Colorado 80203-2141

(303) 861-1963

Bond Counsel

Butler Snow, LLP1700 Broadway 41st Floor

New York, New York 10019(646) 606-2996

Independent Auditors

CliftonLarsonAllen LLP8390 E. Crescent Parkway, Suite 600Greenwood Village, Colorado 80111

(303) 779-5710

Financial Institution

Guaranty Bank & Trust Company807 Mountain Avenue

Berthoud, Colorado 80513(970) 532-2676

Contact Information

2014 northern water comprehensive annual financial report

Documents