INTRODUCTION

This 2009 Annual Report of the San Luis Valley Water Conservancy District (District) provides a status report on the activities of the District during calendar year 2009.

DIRECTORS

Dee Greeman, Alamosa County, and Charles Lavery, Alamosa County, were reappointed to a four (4) year term, effective September 6, 2009. The other Directors are Doug Messick, Karla Shriver, Richard Davie & Mike Prentice, Rio Grande County, Charles Griego & Darius Allen, Alamosa County, and Robert Felmlee, Saguache County.

MANAGEMENT

Mike Gibson remained as Manger of the District. A part-time administrative assistant continued to support the District.

FINANCIAL

The audited 2009 Financial Statements can be viewed at the District’s office during regular business hours. There were no issues identified in the Audit. There were no increases in the District’s fees in 2009.

OPERATIONAL

During the year, the District continued to assess its role in meeting future augmentation water needs within its service boundaries. Throughout the year sales of augmentation water continued, particularly in Alamosa and Rio Grande Counties, primarily for development. The District continues to meet the current augmentation needs through its existing holdings of water rights. The District has approximately 85% of its holdings in the Pine River Weminuche Transmountain Ditch committed as of December 31, 2006. In 2005, the District filed an Augmentation Plan, in Water Court, case # 05CW13, covering water rights acquired from South Fork Ranches, LLC, under a February 20, 2003, Supplemental Augmentation Water Agreement. These water rights are on Bear Creek. There were no filings of opposition, and the District has continued to work with the Division Engineer, Colorado Division of Water Resources, to address his issues of concern. At year-end these discussions were continuing.

In 2006, the District received more than 85% of the water historically produced by their main water right on the Pine River / Weminuche Transmountain Ditch. In addition, the 03CW41 Decree yielded its anticipated 73.4-acre feet of water. Water was stored that was not required to meet the 2006 augmentation water obligations.

In 2006 maintenance work was continued on the Pine River / Weminuche Transmountain Ditch. This was the third year of a multi-year program to repair and upgrade the ditch to raise the capacity of the Ditch to handle the associated water rights.

The District continued to seek additional opportunities to acquire suitable water rights. In addition, the District required developers wanting more that 3.00-acre feet of augmentation water to bring acceptable water rights to the District. The District would then take these water rights through Water Court for the change in beneficial use to the District’s augmentation program. This would provide a source of augmentation water to the developer.

RIO GRANDE HEADWATERS RESTORATION PROJECT

In 2006, the Project was again supported by the District, which provided management and administrative support, and by a donation from the Rio Grande Water Conservation District.

In 2004, the Project was a recipient of a $150,000.00 EPA 319, Non-Point Source grant for riparian restoration onthe Rio Grande. This work is being partnered with the Monte Vista, Colorado, Office of the Natural Resources and Conservation Service (NRCS). At the end of 2006 four projects had been completed, others engineered, and preparations made for implementation in early 2007. This cost share program is with 17 landowners.

The Project received funding of $10,000.00 from the Colorado Watershed Protection Fund, and $7,500.00 of Severance Taxes through the Colorado Water Conservation Board, to develop a Rio Grande Watershed Restoration Strategic Plan, covering the river from its headwaters to the Colorado / New Mexico state line. Additional funding of $25,000.00 was obtained from the EPA’s 319 Watershed Planning Grant Program. Development continued on the Plan, and at the end of 2006, the final drafts were under review.

The Colorado Rio Grande Restoration Foundation, a non-profit 501(c) 3 corporation continued to be the fiscal agent for the Project.