45-2281

45-2281. Establishment of funds; allocation of
authority revenues; member dues

A. On the authority's formation, a grant fund, a water acquisition fund and an
operating fund are established. The authority's revenues shall be deposited in and
disbursed from the funds as provided by this section. Revenues deposited in the grant
fund may be used to make grants to authority members for water acquisition, water
conservation and water reuse. Revenues deposited in the water acquisition fund may be
used to acquire water pursuant to section 45-2245. Revenues deposited in the operating
fund shall be used as provided in subsection E of this section.

B. Except as provided in subsection D of this section, all revenues of the
authority shall be deposited in the grant fund except the following:

1. Dues paid by authority members which shall be deposited in the operating fund.

2. Ten per cent of all amounts paid by municipal subcontractors under subcontracts
entered into as provided in section 45-2244, subsection B which may be deposited in the
operating fund or the water acquisition fund as determined by the board.

3. Fifty per cent of all amounts paid by subcontractors of the authority pursuant
to subcontracts entered into as provided in section 45-2244, subsection E or F.

4. That portion of the monies earned by the authority under subcontracts entered
into pursuant to section 45-2245, subsection H that is equal to the cost to the authority
of obtaining the water transferred under those subcontracts and, after payment of seven
million five hundred thousand dollars as adjusted pursuant to subsection C of this
section, all of the monies earned from those subcontracts.

C. Except as provided in subsection B of this section, all of the authority's
revenues shall be deposited in the grant fund until the full amount of the initial grant
and any additional amounts required in a grant agreement between the authority and the
member that receives the grant have been disbursed from the grant fund as provided in
this subsection. The initial grant from the grant fund shall be made to the authority
member that transferred, or caused to be transferred, to the authority the right to the
delivery of eighteen thousand five hundred acre-feet per year of Colorado river water in
connection with the authority's formation. The amount of the grant to that member shall
equal seven million five hundred thousand dollars plus any additional monies that the
authority and the member agree to in a grant agreement between the authority and the
member, which amount shall be adjusted annually from the date of the authority's
formation either for inflation or as may otherwise be provided in the subcontracts of the
authority or in the grant agreement, until the amount of the initial grant required by
this subsection and any additional amounts required by the grant agreement are paid in
full. The initial grant may be disbursed in a lump sum or in partial payments in
accordance with the request of the authority member that is entitled to receive the grant
and as revenues become available to the authority and are deposited in the grant
fund. The authority member that is entitled to receive the grant may request that
disbursements be made whenever revenues have been deposited in the grant
fund. Notwithstanding section 45-2282, the authority shall promptly disburse those
revenues that are deposited in the fund on receipt of a request from that member.

D. After the disbursement of the full amount of the initial grant and any
additional amounts required in a grant agreement of the authority from the grant fund as
provided in subsection C of this section, the authority's revenues, except dues paid by
authority members, may be deposited in the grant fund, water acquisition fund or
operating fund as determined by the board.

E. The authority shall establish a schedule of dues that is sufficient, when
aggregated with other monies available for the payment of administrative expenses, to pay
the estimated administrative expenses of the authority. Dues shall be assessed and
allocated equitably among authority members as determined by the board. All dues
received by the authority shall be deposited in the operating fund. Expenditures may be
made from the operating fund to pay:

1. The authority's administrative expenses.

2. The costs of the authority's formation including an equitable portion of the
costs of the municipal corporation that transferred rights to the delivery of Colorado
river water as provided in section 45-2202.

3. The costs associated with holding any entitlement to water acquired by the
authority.

4. Subject to subsection C of this section, the costs incurred by the authority in
the operation of any project undertaken by the authority pursuant to this chapter.

5. Amounts payable to the United States annually for the right to hold and use the
eighteen thousand five hundred acre-feet per year of Colorado river water acquired by the
authority pursuant to section 45-2202, subsection C which amounts may include any tax,
fee or excise imposed upon the sale or transfer of the water.

F. Any authority member that is in arrears in the payment of its dues for more than
sixty days shall lose the right of its appointed director to vote on all authority
matters until all of the dues that are in arrears are fully paid. An authority member
whose dues are in arrears does not lose membership in the authority because of the
arrearage.