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OCN > 2310 > Donala Water and Sanitation District, Sept. 21. Preliminary 2024 budget presented

Donala Water and Sanitation District, Sept. 21. Preliminary 2024 budget presented

By James Howald and Jackie Burhans

At its September meeting, Donala Water and Sanitation District (DWSD) General Manager Jeff Hodge and Accounts Payable specialist Christine Hawker presented a preliminary draft of the district’s 2024 budget. The board awarded a contract for rehabilitating the district’s water tanks, updated a lease to sell effluent water, and made plans to sell a surplus variable frequency drive (VFD). Finally, district staff updated the board concerning the district’s testing of hydrous manganese oxide (HMO) to reduce radium in its treated water.

2024 budget overview.

The preliminary budget presented showed an increase in total revenue from $6.86 million projected for 2023 to $7.60 million budgeted for 2024. Water sales and interest income are projected to increase in 2024. Property tax revenue for 2024 was projected to be $2.24 million; that number reflects a $600,000 decrease in the county’s assessment due to the possibility of Proposition HH passing. Hodge said the 2024 budget assumes the district will not see any increase in revenue from increased property taxes.

On the expense side, total operating expenses are estimated to increase from $4.92 million projected for 2023 to $6.24 million budgeted for 2024. In the 2024 budget, $365,351 was moved from administrative expenses to operating expenses because upgraded accounting software enables better tracking of contract services. Utility costs for 2024 are budgeted to increase by $257,000 due to an estimated 10% increase in electrical costs by Mountain View Electrical Association. Engineering costs and well maintenance costs are also projected to increase in 2024.

Total capital and bond expense is estimated to increase from $3.44 million projected for 2023 to $4.31 million budgeted for 2023.

A total of $3.57 million was budgeted for capital improvement projects in 2024, with rehabilitation of three storage tanks, filter media rehabilitation at the R. Hull treatment plant, and funding for “The Loop” water reuse project at the top of the list.

Hodge emphasized that water and sewer revenue would cover the district’s operating expenses, and he estimated DWSD would have $8 million in reserves.

Board President Wayne Vanderschuere said the budget would need to be presented to the state by Oct. 15 and the board would hold a special meeting on Oct. 12 to formally accept a final 2024 budget.

Water tank rehab contract awarded.

Hodge recommended the board award a contract for water tank rehabilitation to Viking Painting LLC, which bid $1.05 million to rehabilitate the district’s three tanks. The contract had previously been awarded to Swedish Industrial Coatings LLC, but that company was unable to do the work.

The board voted unanimously to award the contract as Hodge suggested.

Effluent water lease extended.

Hodge asked the board to consider extending for two years a contract for DWSD to lease up to 6.5 acre-feet of effluent water per year to Letha Robison. The state of Colorado requires pond owners to replace water lost to evaporation. Hodge explained the new contract would raise the price of the water from $150 per acre-foot to $300. The board voted unanimously to extend the contract.

Surplus VFD to be sold.

Hodge told the board he had a buyer for a VFD the district is taking offline. VFDs control the operation of the motors that drive well pumps and allow them to ramp up or down smoothly rather than being completely on or completely off, thereby saving energy costs and reducing the wear and tear on pipelines. Water Operator Ronny Wright said he expected the VFD to be sold for $7,500.

HMO testing moves forward.

Wright updated the board on the status of the demonstration project the district is running to prove that treatment with HMO will reduce to acceptable levels the radium in the water delivered to customers. Wright said samples treated with HMO were taken between Sept. 11 and 17 have been submitted for testing. Two more samples will be taken in mid-October and in November, he said, adding he expected results by late December. When all results are received, the district will have 30 days to send the results to the state. Wright said he anticipated the state would respond by April, allowing DWSD to proceed with the design of an HMO-based radium treatment process.

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The next meeting is scheduled for Oct. 19 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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