City Council Initially Approves Water Storage Project Transition

Published on October 22, 2026

Contact: UtilitiesMedia@fortcollins.gov

On Oct. 20, City Council gave initial approval to a City of Fort Collins staff recommendation to pursue participation in the Northern Integrated Supply Project (NISP) through a one-year interim agreement. Participation in this water storage project would replace the City’s approach to expand Halligan Reservoir. Council is scheduled to consider and vote on the recommendation again on Nov. 3, 2026.

The City has been working on federal permitting for the Halligan Water Supply Project since 2006. The U.S. Army Corps of Engineers (Corps) has not yet made a permit decision and recently indicated it would likely be denied. This obstacle and other challenges, including financial and legal risks, led the City to investigate options once again to ensure Fort Collins Utilities customers have sustainable and affordable water into the future.

After rigorous analysis, staff determined that NISP is now a better water storage option for Utilities, providing permit certainty and significant cost savings based on current estimates. Transitioning to NISP is projected to save Utilities water customers money through lower rate increases. Current rate projections show future increases would not be as high as they would be if the City received the federal permit and continued with the Halligan Project.

The City’s estimated savings are based on the ability to store its own senior water rights in NISP’s Glade Reservoir northwest of Fort Collins. The City is targeting 5.8% participation in NISP’s Glade component, which would provide up to 9,860 acre-feet of storage.

“While this is a big shift for our community, the water utility, and the City, it’s critical to secure sustainable, nearby water storage for our existing water rights while maintaining affordability as best we can,” One Water Executive Director Nicole Poncelet-Johnson said. “We are proud of the work we’ve done toward the Halligan Project, the environmental mitigation we’ve completed along the North Fork of the Poudre River, and thankful for the community support thus far. However, transitioning to NISP provides more certainty and affordability for our water customers.”

Securing storage is a strategy that ensures the City’s ability to meet the needs of the community, in a hotter, drier future for generations to come. In addition to water storage, the City’s comprehensive water conservation program has helped significantly reduce the amount of storage needed. Despite efforts and investments in conservation, it does not provide the scale of resilience from more storage. The City needs both storage and conservation to stretch existing supplies and to ensure Utilities can serve the community through drought.

City Council voted in line with staff’s recommendation on first reading. If City Council formally approves the resolutions and ordinance on second reading in November, that would enable City staff to sign interim agreements with Northern Water, the organizer of NISP, and move to withdraw the Halligan Project’s federal permit application with the Corps. If future Northern Water contractual agreements are accepted by both parties, the City would sign a final contract to officially become a NISP participant in late 2027.

The City and Northern Water have a long partnership for water delivery through the Colorado-Big Thompson Project and Horsetooth Reservoir west of Fort Collins. To learn more about NISP and Glade Reservoir, visit NorthernWater.org/NISP.

Community conversations and outreach opportunities will be posted on the City’s website as they are scheduled.