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OCN > 2311 > Donala Water and Sanitation District, Oct. 12 – 2024 legal budget presented

Donala Water and Sanitation District, Oct. 12 – 2024 legal budget presented

By James Howald and Jackie Burhans

At its October meeting, the Donala Water and Sanitation District (DWSD) board continued its work on a budget for 2024. It also heard operational reports.

DWSD District Manager Jeff Hodge began by pointing out that the budget before the board was a “legal” budget, in the format required by the state, with three columns showing the actual year-end figures for 2022, the projected year-end figures for 2023, and the budgeted figures for 2024.

Hodge predicted a $2 million decline in the district’s ending fund balance from 2023 to 2024 due to $1.6 million needed to repair storage tanks, leaving the district with just under $9 million in reserves in 2024. Hodge said he expected reserves to increase in 2025 and 2026.

Water sales were $3.4 million in 2022 and were projected to decrease to $2.7 million by the end of 2023, a decline of about $731,000, Hodge said. Water sales are expected to be $3.2 million in 2024. Sewer service revenue is expected to be about $1.6 million for both 2023 and 2024.

Hodge said that while the district was neither in favor of nor against Proposition HH, the 2024 budget was put together on the assumption that it would pass. The district’s general property tax revenue is budgeted to increase by $600,000 in 2024.

Interest income was $120,144 in 2022, is projected to be $446,512 at the end of 2023, and is budgeted for $594,000 in 2024.

Grant proceeds are budgeted for $1.6 million in 2024, due primarily to American Rescue Plan Act funds awarded to DWSD for radium mitigation.

Overall, revenue is expected to increase slightly in 2024, Hodge said.

On the expense side, Hodge said operating expenses were expected to double from $3.4 million in 2023 to $6.1 million in 2024 due to a requirement by the state that certain repair and maintenance projects be included in this line item.

The board scheduled a public hearing on the budget for 1:30 p.m. Dec. 7 at the district offices at 15850 Holbein Drive.

Highlights of operational reports

  • Water Operator Ronny Wright told the board that the district’s study of hydrous manganese oxide technology to reduce radium levels in treated water was going well, and he expected testing to be complete by the end of 2023. The study results will be submitted to the state for review.
  • The planned maintenance on the district’s water tanks is scheduled to start in May.
  • The vault for Well 16A is complete, and work on the electrical system for the well is being scheduled.
  • Cracking in the walls of the sequential batch reactor at the Upper Monument Creek Waste Water Treatment Facility will be repaired using pressurized resin injection.

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The next meeting is scheduled for Nov. 16 at 1:30 p.m. Generally, board meetings are held the third Thursday of the month at 1:30 p.m. and include online access; call (719) 488-3603 or access www.donalawater.org to receive up-to-date meeting information. The district office is located at 15850 Holbein Drive, Colorado Springs.

James Howald can be reached at jameshowald@ocn.me. Jackie Burhans can be reached at jackieburhans@ocn.me

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