Johnstown council approves $893,846 to take part in Glade Reservoir water project

The Johnstown Town Council approved an agreement committing the town to pay $893,846 for 1,400 units in the Northern Integrated Supply Project, which staff estimate would provide about 1,275 acre-feet of water.

The $893,846 covers Johnstown's share of costs for May 1–Dec. 31, 2026, and is based on the town's requested capacity divided by the total requested project yield. On a per-unit basis it equals what other participants were previously charged and paid. Johnstown must pay within 30 days after receiving an invoice, and the estimated costs cannot be increased or exceeded without the town's prior written approval.

Staff said participation would help the town diversify its water portfolio, support the health of its water system and enable long-term growth.

Staff also said they believe the project could be the last regional water project in Northern Colorado, and perhaps all of Colorado, for quite some time, because such projects take years to develop and face environmental review. Another speaker compared water to the stock market and said prices keep rising, calling participation a good opportunity to build the town's portfolio for the future.

Staff described the project as one that would deliver 40,000 acre-feet of new, reliable water to Northern Colorado, built around Glade Reservoir near the Fort Collins area. The current total cost estimate is $1.9 billion, staff said, stressing that this is not Johnstown's cost.

Staff estimated that 1,400 units would provide approximately 1,275 acre-feet, a conversion they described as close to but not one-to-one. Additional units might be available depending on bids, staff said, but they considered 1,400 units the most conservative position for Johnstown.

An Oct. 20 allocation table puts Johnstown's 1,400 units at 6.70% of a 20,900-unit total, with contributions totaling $13,343,846. Erie holds the largest share at 4,500 units and $2,873,077. Staff said they thought the project had seven or eight participants, including Frederick, Left Hand Water District, Erie and Windsor, and identified Fort Collins as a new participant.

Johnstown's maximum financial obligation under the agreement is the amount set out for its participation, and the town may terminate the agreement at any time. Under the agreement, Johnstown takes part in Phases 3A, 5, 6, 7 and 8, but the agreement does not obligate it to join later phases or continue in the project.

Johnstown may withdraw from or reduce future participation with at least 180 days' written notice to the enterprise and all other participants. It generally cannot recover funds unless another entity provides replacement funds. If the agreement expires without a later interim agreement or an allotment contract, the project's enterprise will stop work for Johnstown, which remains responsible for its agreed 2026 cost share and generally cannot recover its funds.

Councilmember Dianne Morris asked about arranging a field trip to the site before it iced over, and suggested Northern Water could lead it. Staff said they could check their schedule and agreed Northern Water could lead it instead. Another speaker said the council could offer a field trip and let members decide whether to go.

The town's Oct. 27 letter outlined a process calling for participant approval on Nov. 2, a planning session on Nov. 5 and final consideration and approval at the Northern Water Board meeting on Nov. 12. Staff said the project and its Water Activity Enterprise had approved Johnstown's inclusion subject to council approval, with the planning session and formal ratification by the Northern Water Conservancy District still ahead.

The enterprise's obligations under the agreement are subject to approval by its Board of Directors, and the agreement becomes binding on the enterprise only upon that approval.