KANSAS WATER PLAN

TABLE 1 KANSAS RIVER CORRIDOR POPULATION AND MUNICIPAL WATER DEMAND PROJECTIONS¹
Year	Projected Total Population		Additional Water Demend⁴ (MGY)
Year	KWO²	Linear Projection³	Additional Water Demend⁴ (MGY)
2040	1,604,538		4,385
			10,113
2075		1,916,499
			13,000
2100		2,194,060

Total			27,498
1. Includes Douglas, Geary, Jefferson, Johnson, Leavenworth, Pottawatomie, Riley, Shawnee, Wabaunsee and Wyandotte counties. 2. Projection from Kansas Water Office population and water demand projections 3. Based upon linear projection of 1950-2000 population (U.S. Census Bureau). 4. Additional water needed (million gallons per year) to meet demand. 2040 value is water needed in addition to present supplies. 2075 and 2100 values based on 135 gallons per capita per day use rate.

As indicated in Table 1, municipal water demand is projected to be 27,498 million gallons per year greater by the year 2100. The projected 2040 water supply yield from the storage available for acquisition in Milford and Perry lakes is 49,000 MGY which is 21,502 MGY more than this projected increase in municipal water demand.

It must be noted that demand could reach these values much sooner if higher growth rates such as discussed for Johnson and Douglas counties occur. Using these rates the Kansas River Corridor total projected population in 2040 would be 2,031,738 and nearly as high as the 2100 population projection of 2,194,060 obtained using linear regression of 1950-2000 population data.

Also, it is important to note that:

· These long-range projections represent a rough estimate of conditions 40 to 100 years into the future.

· It is likely that public water suppliers outside of the Kansas River Corridor region may look upon Milford or Perry lakes as a water supply source.

· Suppliers within the region may have other options for additional water supply such as the Missouri River, Clinton Lake or Hillsdale Lake.

· Municipal water demand rates may change dramatically in the next century in response to the price of water, implementation of recycling or other factors.

Of concern is the impact of reservoir siltation upon future water supply yield from Milford and Perry lakes and the influence of such siltation on water quality. The U. S Geological Survey has estimated that 23 percent of the original conservation pool water storage capacity in Perry Lake was lost due to sediment deposition from 1969 through 2001. Kansas Water Office studies show an estimated current capacity loss of 1,558 acre-feet per year from the conservation pool in Milford Lake and 1,485 acre-feet per year from the conservation pool in Perry Lake.

Additional Storage Available in Milford and Perry Lakes

The State of Kansas has contracted with the U.S. Army Corps of Engineers for the purchase of 500,000 acre-feet of water supply storage in Milford, Perry and Tuttle Creek lakes as indicated in Table 2. Of this total, only some 176,650 acre-feet has actually been called into service to support the state’s Water Assurance and Water Marketing programs. Available for acquisition is 323,350 acre-feet of storage in Milford and Perry lakes for which payment has been deferred.

Contracts between the United States and the State of Kansas for the purchase of water supply storage space in Milford and Perry lakes for municipal and industrial water supply purposes were signed in 1974 and 1976, respectively. These contracts provide that the State’s share for all costs shall be payable in equal annual installments within a period not to exceed 50 years or the remaining life of the Project, whichever is less, commencing from the date the State first uses or exercises control of the storage space. Both contracts also provide that the regulation of the water stored in the water supply storage space, or any increments thereof, following commencement of use shall be the responsibility of the State. The annual interest rates are 2.632 % for the Milford Lake contract and 3.046% for the Perry Lake contract.

The in-service date for the storage under contract in Milford Lake is 1984, while this date for storage under contract in Perry Lake is 1991. Thus, any further acquisition of storage in Milford Lake must be completed by 2034, while the State has until 2041 to complete acquisition of storage in Perry Lake.

TABLE 2 STORAGE AVAILABLE FOR ACQUISITION MILFORD, PERRY AND TUTTLE CREEK LAKES, KANSAS
	Storage Volume (Acre – Feet)
Lake	Available	Under Contract	In Service	Payment Deferred	Not State Controlled
Milford	300,000	300,000	101,650	198,350	198,350
Perry	150,000	150,000	25,000	125,000	125,000
Tuttle Creek	122,000	50,000	50,000	0	72,000 ¹

Total	572,000	500,000	176,650	323,350	395,350
1. Water quality pool held by the Corps of Engineers Source: Kansas Water Office

POLICY OPTIONS AND RECOMMENDATIONS

Water supply storage space acquisition needed to control pool levels at a given elevation in Milford and Perry lakes is summarized in Tables 3 and 4. These pool elevations go from the top of the multipurpose pool to as low as the lakes are drawn down under current water level management plans. The area-capacity tables used in these calculations are based upon the most recent sediment surveys conducted at Perry Lake (1993) and Milford Lake (1994). Costs associated with acquiring this storage are also presented.

Tables 3 and 4 show values for Principal and Interest costs over the remaining life of the contracts for Milford and Perry lakes plus Operation and Maintenance costs in 2005 and for the last year of the contract. The values for the last year were made by projection of 1985-2004 Operation and Maintenance costs for Milford Lake and 1991-2004 Operation and Maintenance costs for Perry Lake.

TABLE 3 ADDITIONAL STORAGE ACQUISITION NEEDED TO CONTROL POOL BELOW A GIVEN ELEVATION – MILFORD LAKE
	Storage Volume (Acre-Feet)			Annual Cost of Additional Storage ($)
Elevation	Current	Design	Additional Design Needed	Principal and Interest	2005 O & M	2034 O & M
1144.4*	372,341	300,000	198,350	686,291	130,911	202,317
1143.4	357,386	287,951	186,301	644,601	122,959	190,027
1142.4	342,912	276,289	174,639	604,251	115,262	178,132
1141.4	328,847	264,956	163,306	565,039	107,782	166,572

* – Top of multipurpose pool Current – Amount of storage capacity currently available at given elevation Design – Amount of storage capacity remaining when design sediment pool is filled O & M – Operation and Maintenace Source: Storage Volume - U.S. Army Corps of Engineers (unofficial) Costs - Kansas Water Office

TABLE 4 ADDITIONAL STORAGE ACQUISITION NEEDED TO CONTROL POOL BELOW A GIVEN ELEVATION – PERRY LAKE
	Storage Volume (Acre-Feet)			Annual Cost of Additional Storage ($)
Elevation	Current	Design	Additional Design Needed	Principal and Interest	2005 O & M	2041 O & M
891.5*	206,705	150,000	125,000	616,250	292,500	653,750
890.5	195,942	142,190	117,190	577,747	274,225	612,904
890.0	190,696	138,383	113,383	558,978	265,316	592,993
889.5	185,508	134,618	109,618	540,417	256,506	573,302

* – Top of multipurpose pool Current – Amount of storage capacity currently available at given elevation Design – Amount of storage capacity remaining when design sediment pool is filled O & M – Operation and Maintenace Source: Storage Volume - U.S. Army Corps of Engineers (unofficial) Costs - Kansas Water Office

The State of Kansas has 30 years left to acquire the remaining water supply storage available under contract in Milford Lake and 37 years left to acquire such storage in Perry Lake. Tables 3 and 4 provide a comparison of the cost of acquiring all available water supply storage or increments thereof over the remaining life of the purchase contracts within the limits of current water level management plans.

The State would gain control of releases from all of the water supply storage space it has under contract by acquiring all storage at once. This would provide the State with an enhanced ability to meet its obligations to water assurance district members and holders of water marketing program contracts. The additional storage would also act as a buffer against potential drawdowns early in an extended drought period.

There would also be an added incentive to protect the reservoir storage space from siltation and from water quality contaminants.

Given the current deficit and continuing shortage of revenues to the State General Fund, it is not likely to be a feasible source of funding at this time. The State Water Plan Fund has annual revenues of approximately $16 million. Funds could be allocated from the State Water Plan Fund over a period of years to pay for acquisition of storage. A Development Fund is associated with the Kansas Water Marketing Program, but the current balance in this fund is insufficient to pay for acquisition of storage. Utilization of state bonding authority would incur interest charges not associated with other sources of funding.

Recommendations

1. The State of Kansas should immediately call into service all of the 198,350 acre-feet of storage under contract in Milford Lake for which payment has been deferred.

2. The State of Kansas should immediately call into service all of the 125,000 acre-feet of storage under contract in Perry Lake for which payment has been deferred.

3. The principal, interest and operations and maintenance costs associated with calling into service that storage under contract in Milford and Perry lakes for which payment has been deferred should be paid from the State Water Plan Fund over the remaining life of the contracts with the United States.

Rationale for Recommendations

The 2040 water supply yield from the storage recommended to be called into service in Milford and Perry lakes is 49,000 million gallons per year (MGY). These lakes, via the Kansas River, are adjacent to Kansas City, the State’s largest and fastest growing metropolitan area.

Based upon Kansas Water Office projections of 2040 municipal water demand and rough estimates of such demand in the year 2100, it is estimated that an additional 27,498 MGY will be needed to satisfy the municipal water demand within the 10-county Kansas River Corridor in 2100. While this estimated demand growth is 21,502 MGY less than the yield from the storage to be purchased, the 2040 population projections may be very conservative. As well, self-supplied industrial water supply is not included and there are likely to be demands for water from outside the corridor region including the Wichita metropolitan area.

Calling all available additional storage in Milford and Perry lakes into service would provide an additional buffer against long-term drought conditions for water assurance district members and those with Water Marketing Program contracts. In the event of a serious multi-year drought, prevention of a six-foot drawdown for navigation support in the Missouri River from storage under contract to the State would prolong the State’s ability to fully meet its contractual obligations to these entities.

Water-based recreation at Milford and Perry lakes would also benefit from prevention of such drawdowns, as would fisheries management. Access to the water from boat ramps and marinas would be prolonged with associated economic benefits. Boaters and water skiers would also face fewer hazards from stumps, rocks and other obstacles.

Consistency with Statutory and Kansas Water Plan Objectives

These recommendations are consistent with the goals and objectives contained in the State Water Resources Planning Act and with achieving the 2010 Objectives of the Kansas Water Plan.

The State Water Resources Planning Act (K.S.A. 82a-901 et seq.) states that among the considerations to be taken into account in formulating the state water plan are: 1) the maintenance, preservation and protection of the sovereignty of the state over all waters within the state; and 2) the need of the state to control storage in federal reservoirs by purchase or agreement.

This Act also contains long-range goals for the management, conservation and development of the water of the state and policies for achieving them. A long-range goal pertinent to acquisition of reservoir storage is to “meet the anticipated future needs of the people of the state, of sufficient supplies of water for beneficial purposes.”

In October 1998, the Kansas Water Authority approved objectives for the year 2010, including the following objectives related to the further acquisition of reservoir storage:

1) by 2010, ensure that sufficient surface water storage is available to meet projected year 2040 public water supply needs for areas of Kansas with current or potential access to surface water storage;

2.) by 2010, increase public recreational opportunities at lakes and streams.

PLAN IMPLEMENTATION

Legislative Action

The Kansas Legislature must approve use of funds from the State Water Plan Fund for payment of principal, interest and operations and maintenance costs associated with calling into service the remaining storage under contract in Milford and Perry lakes.

Administrative Action

The Kansas Water Office has previously filed for and been granted reservation water rights in Milford and Perry lakes by the Kansas Department of Agriculture, Division of Water Resources. These reservation rights are sufficient to cover the additional storage that would be called into service as recommended in this Kansas Water Plan subsection.

No administrative action is necessary to implement these recommendations.

Financial Requirements

As indicated by Table 5 below, the total annual cost of calling into service the recommended additional storage is $ 1,725,952.

TABLE 5 2005 COST OF CALLING STORAGE INTO SERVICE
		Cost ($)
Lake	Interest Rate	Principal and Interest	Operation and Maintenance	Total
Milford	2.632%	686,291	130,911	817,202
Perry	3.046%	616,250	292,500	908,750

Total				1,725,952
Source: Kansas Water Office

Implementation Schedule

A recommendation to call into service the remaining storage under contract in Milford and Perry lakes and to pay for this storage from the State Water Plan Fund will be included in the Kansas Water Authority’s Report to the Governor and 2004 Kansas Legislature. Assuming legislative approval, payment for the storage would begin during State Fiscal Year 2005 which begins July 1, 2004.