Cost and Financing

Terry Ranch: The Most Affordable Solution

The Terry Ranch Project is estimated to cost $318 million (in 2023 dollars) to meet Greeley's demands over the next 50 years. The city is using an innovative, low-risk purchase agreement to acquire this water and storage from Wingfoot Water Resources, which benefits Greeley and our customers by:

1. Reducing the funding needed upfront
2. Sharing financial risks with the seller (Wingfoot)
3. Keeping water rates lower
4. Securing a long-term water supply

As part of this mutually beneficial arrangement, Wingfoot will pay the City of Greeley $125 million toward project costs and transfer all Terry Ranch water and assets to the city. This arrangement reduces Greeley's project costs to $193 million (if paid in full today).

In exchange, the city is issuing water supply credits to Wingfoot, each worth one acre-foot of water. Developers and builders must bring either water supply or cash to fund the purchase of additional water before getting approval for new construction in the city. The Wingfoot water supply credits are only redeemable within the City of Greeley.

While the Terry Ranch facility's operating costs exceed Greeley's other treatment plants, the city will only use it during drought or other supply constraints.

Terry Ranch Will Keep Rates Lower

Water rates fund the cost of new water infrastructure and supplies. While Greeley works to minimize rate increases, higher construction and operation costs make this a constant challenge. The Terry Ranch project is the most affordable solution for Greeley and will help keep rates lower than other alternatives.