Severance votes to withdraw from NISP, council cites cost and alternatives

The Severance Town Council voted on March 24 to remove the town from the Northern Integrated Supply Project (NISP), citing ballooning cost estimates, falling participation by other members and more immediate alternatives for acquiring water supplies.

Town Manager Nick Wharton summarized the town’s long involvement in NISP (participating since 2004) and said the town currently holds 500 shares after prior sales. Wharton presented updated cost ranges tied to different participation levels: remaining at 500 units would cost Severance roughly $32 million–$52 million under current worst-case assumptions and would require raising rates by roughly 250–430 percent in the worst estimate; cutting participation to 250 or 125 units still produced unaffordable rate impacts in the worst-case scenarios. Wharton presented a lower-cost option of retaining 100 units, with an estimated town cost between about $6.4 million and $10.5 million — a level staff said could be covered without immediate rate increases.

Council members debated the tradeoffs. Several members — Gallardi, Bruin, Oakes, Hessler and Vandermark — favored exiting the project given the new figures and the number of participants who had dropped out. Mayor Friess said he historically supported NISP for long-term water independence and warned that leaving might make it difficult to re-enter later, but he recognized the near-term fiscal burden to residents. "Water independence is that we have control over the rights of the water, the treatment of the water, and the delivery of our water to our residents," Mayor Friess said when describing why he had supported NISP in the past.

After discussion, Councilmember Vandermark moved that Severance remove itself from the NISP project entirely; Councilmember Oakes seconded. The motion passed by roll call with council members voting to withdraw. Manager Wharton told the council staff will update the capital master plan to remove NISP procurement lines and return recommendations on alternate water purchases and budget allocations for future annual procurement.

Council discussion also covered alternatives such as buying native Northern Colorado water (for example North Poudre shares) and potential pipeline/treatment costs if the town pursues direct water purchases. Staff emphasized that if the council chooses to pursue other water sources, treatment and pipeline costs would still need evaluation and appear in future capital planning.