Section 99-99-210 - Projects authorized; financing; excess water(a) The following construction is authorized within the Stage II project: (i) Enlargement of Rob Roy Reservoir, estimated to cost eighteen million dollars ($18,000,000.00);(ii) Little Snake River collection system, estimated to cost twenty-five million dollars ($25,000,000.00);(iii) Enlargement of Hog Park Reservoir, estimated to cost thirteen million dollars ($13,000,000.00);(iv) Hog Park to Encampment River pipeline, estimated to cost two million dollars ($2,000,000.00).(b) The projects enumerated in subsection (a) of this section shall be financed as follows: (i) The city of Cheyenne shall finance the total cost of the project except for the portion funded by the state under paragraph (ii) of this subsection;(ii) The state shall finance twenty million dollars ($20,000,000.00) of the total cost of the projects under paragraphs (a)(i), (ii), (iii) and (iv) of this section as provided by subsection (d) of this section.(c) The state loan and investment board with the advice of the director of the department of commerce is authorized to loan not more than thirty-five million three hundred sixty thousand nine hundred sixty-five dollars ($35,360,965.00) from the permanent mineral trust fund to the city of Cheyenne or as much thereof as deemed necessary by the department of commerce to design and construct the portion of Stage II of the Little Snake River water management project provided by subsection (a) of this section. The revenue shall not be advanced until:(i) The qualified electors of the city of Cheyenne approve creation of debt totaling the amount authorized by this subsection and approve the pledging of the revenue from the operation of the water project as the primary source of repayment of the debt as evidenced by the issuance of general obligation bonds to the state of Wyoming;(ii) The city of Cheyenne submits a financing plan designed to reimburse the state of Wyoming subject to the following specific conditions:(A) The city will pay interest charges computed at a rate which will be no more than one-half percent (.5%) below the rate for which the city of Cheyenne could sell the general obligation bonds on the open market, and shall not be less than five percent (5%) per annum. This rate determination shall be made by the state loan and investment board;(B) Principal payments may be deferred on request of the city with the approval of the state loan and investment board but not beyond the original final payment date set by the state loan and investment board;(C) The city shall apply available revenue from secondary sources of revenue, designated within the financing plan, to the repayment of the loan.(iii) Repealed by Laws 1986, ch. 114, § 3.(iv) A rate study is conducted for the city by a professional municipal finance and rate firm;(v) The city agrees to mortgage to the state all facilities constructed with funds provided by the state loan and investment board and assign all easements, rights-of-way, water rights and permits as approved by the state engineer appurtenant thereto, in such form and to such extent as is required by the Wyoming attorney general. The conveyances shall be held in escrow. The state engineer shall not change the priority date of the water rights and permits as a result of this conveyance or escrow. Upon payment in full of the loan to the state of Wyoming, the conveyances shall be returned to the city of Cheyenne.(vi) Repealed by Laws 1986, ch. 114, § 3.(d) The state treasurer shall pay not to exceed twenty million dollars ($20,000,000.00) from the Wyoming water development account provided by W.S. 39-14-111(j) to the city of Cheyenne as deemed necessary by the department of commerce as provided by paragraph (b)(ii) of this section. The payments are grants and not loans to the city of Cheyenne and shall not:(i) Be disbursed until the election pursuant to W.S. 41-2-210(c) is held and the indebtedness approved by the electors;(ii) Deplete the balance remaining within the Wyoming water development account to less than ten million dollars ($10,000,000.00) for projects listed within W.S. 41-2-210(a);(iii) Be disbursed until the city of Cheyenne, in consultation with the state loan and investment board and the department of commerce, develops a proposed financing plan for funding the completion of the Stage II water project as defined in W.S. 41-2-204(a)(ii) and (iii). Copies of the plan shall be mailed to the governor and members of the legislature. This provision shall not be construed as requiring any approvals of such a financing plan.(e) All water in excess of the needs of the city of Cheyenne within the service area of the city produced by Stage II of the project shall be assigned to and marketed by the Wyoming water development commission for as long as the excess water is available or until July 1, 2036, whichever is earlier, or until the Wyoming water development commission determines that the excess water is no longer needed because the water has not been contracted for during the previous ten (10) years. Upon a determination by the commission that the excess water is not needed and has not been contracted for during the previous ten (10) years, the commission may renegotiate or seek to terminate any existing contract with the city of Cheyenne entered into pursuant to this subsection and subsection (g) of this section. Upon termination of any existing contract entered into pursuant to this subsection and subsection (g) of this section, the excess water shall no longer be assigned to and marketed by the Wyoming water development commission. The first option to purchase not more than eighty percent (80%) of the surplus water shall be extended to cities, towns and special districts within the North Platte basin for the benefit of their inhabitants at a negotiated cost. Sales contracts entered into by the commission shall be administered by the commission. To optimize the amount of excess Stage II water available for marketing without jeopardizing water supplies necessary to meet the city of Cheyenne's municipal needs, the city shall develop a Stage II management plan acceptable to the water development commission and the state engineer. The board shall transfer thirty-seven and three-tenths percent (37.3%) of the proceeds from the sale of excess Stage II water to the city of Cheyenne which it shall apply to the repayment of the loan provided by subsection (c) of this section until the loan is repaid.(f) Repealed by Laws 1986, ch. 114, § 3.(g) All effluent from the city of Cheyenne's sewage treatment plant resulting from Stage II municipal water Cheyenne develops the ability and the need to recycle or use that water for municipal purposes. Sale contracts entered into by the commission shall be administered by the commission. The board shall provide thirty-seven and three-tenths percent (37.3%) of the proceeds of the sale of Stage II effluent to the city of Cheyenne for its use. The water development commission may withdraw up to sixty-two and seven-tenths percent (62.7%) of the Stage II effluent from sale and the city of Cheyenne may withdraw up to thirty-seven and three-tenths percent (37.3%) of the Stage II effluent from sale. If either the city or the commission withdraws any portion of its share of Stage II effluent from the market its share of revenues generated by sale of the remainder shall be reduced proportionately. The sale or withdrawal from sale of Stage II effluent shall not be accomplished without consultation among the commission, the city and the state engineer. Because the effluent affected hereby is a by-product of the Stage II dams and pipeline projects, there are no restrictions on the city of Cheyenne's use of its share of the revenues generated by the sale of Stage II effluent.(h) Any revenues to the state from the lease, sale, assignment or transfer of excess Stage II water or Stage II effluent as provided in subsections (e) and (g) of this section shall be deposited in the Wyoming water development account funded by revenues under water development account I.(j) In addition to the grant provided by W.S. 41-2-210(b)(ii) and (d), the state of Wyoming shall grant to the city of Cheyenne from the Wyoming water development account funded by revenues under water development account I not to exceed three million dollars ($3,000,000.00) to be used to pay fifty percent (50%) of excess project expenses for projects designated in subsection (a) of this section, provided: (i) Payments shall be made only for project expenses in excess of the combined fifty-five million three hundred sixty thousand nine hundred sixty-five dollar ($55,360,965.00) grant and loan authorized by W.S. 41-2-210(b)(ii), (c) and (d);(ii) The city shall submit all invoices for payment to the Wyoming water development commission for approval. The commission shall, upon review and approval of the invoices, make payments directly to the city for fifty percent (50%) of the total invoice amount;(iii) Payments under this subsection are grants and not loans to the city of Cheyenne; and(iv) Nothing in this subsection shall be deemed to alter or amend any provision of W.S. 41-2-210(e), (g) or (h).(Laws 1980, Ch. 72, § 1; 1982, Ch. 60, § 1; 1985, Ch. 228, § 2; 1986, Ch. 114, §§ 2, 3; 1989, Ch. 268, § 5, 1991, Ch. 68, § 1; 1998, Ch. 5, § 2; Ch. 6, § 3; Ch. 13, § 1; 2000, Ch. 97, § 3; Renumbered from 41-2-210 by Laws 2009, Ch. 168, § 401.) Amended by Laws 2021 , ch. 12, § 2, eff. 2/8/2021.