FORT COLLINS — The City Council gave initial approval Tuesday to a staff recommendation that Fort Collins again pursue participation in the Northern Integrated Supply Project, seeking a one-year interim agreement that would displace the city’s long-planned Halligan Reservoir expansion as the primary water-storage strategy.
Why the shift matters
The city has pursued federal permitting for the Halligan Water Supply Project since 2006. Recent developments in the permitting process — including a signal from the U.S. Army Corps of Engineers that a federal permit would likely be denied — along with financial and legal risks prompted staff to revisit alternatives to Halligan to secure reliable, affordable water for Fort Collins Utilities customers.
After an analysis, city staff concluded that participation in NISP would now be a better option for Utilities, offering permit certainty and what the city describes as "significant cost savings" under current estimates. If approved by the council on Nov. 3, the change would mark a substantial pivot in regional water planning after two decades of work on Halligan.
Project elements and financial context
NISP was first envisioned in 2003 with an estimated cost of $350 million. The project now carries an estimated price tag of $2.7 billion. It would create two new reservoirs: Glade Reservoir northwest of Fort Collins — a site that would require relocation of U.S. Highway 287 — and Galeton Reservoir northeast of Greeley. The plan also includes pipelines and pumping stations to move water from the Poudre River into the reservoirs and distribute it back out to users across the 15 partner entities.
As costs climbed, some partners withdrew from NISP. In August 2025 the Fort Collins-Loveland Water District, the project’s largest stakeholder, sought to sell its 20% stake. Against that backdrop, Fort Collins Utilities re-examined the relative merits of Halligan and NISP.
| Item | Detail |
|---|---|
| Original NISP estimate (2003) | $350 million |
| Current NISP estimate | $2.7 billion |
| Fort Collins target participation in Glade | 5.8% |
Local benefits and rate implications
The city says shifting to NISP would allow Fort Collins to store its own senior water rights in the Glade component, an arrangement the staff analysis found would lower long-term cost exposure compared with completing Halligan under the current federal permitting outlook. Officials project that transitioning to NISP would reduce the magnitude of future rate increases for Fort Collins Utilities customers compared with the Halligan trajectory, though final costs will depend on detailed negotiations, partner participation and the outcomes of federal and state permitting.
- Permit certainty: Staff identified NISP as providing clearer permitting prospects than Halligan, given recent Corps indications.
- Cost savings: Current estimates favor NISP for lower customer rate increases relative to Halligan.
- Infrastructure impacts: Glade Reservoir would require relocation of U.S. Highway 287 and large-scale conveyance works.
Next steps and regional stakes
The City Council is scheduled to consider and vote on the staff recommendation on Nov. 3. If the council approves the one-year interim agreement and Fort Collins proceeds with NISP participation, the move will reshape regional water partnerships and funding structures for the foreseeable future. The broader project already entails substantial coordination among partner entities, many of whom have reconsidered their roles as the cost picture changed.
For Fort Collins residents, the decision will carry direct consequences for how water supply is secured and how much utilities customers will pay in the years ahead. It also ties local planning to larger environmental and infrastructure trade-offs: reservoir footprints, river diversions, highway relocation and long-term river flows.
Council members and staff framed the choice as one between continuing a protracted permitting battle for Halligan with uncertain outcomes and joining an expanded regional storage project that staff say offers clearer permitting and more predictable costs. The Nov. 3 vote will determine whether the city moves to formalize that regional approach.
