OCN

Volunteers reporting on community issues in Monument, Palmer Lake, and the surrounding Tri-Lakes area

OCN > 2411 > Monument Sanitation District, Oct. 16 – Board considers rate increase; discusses 2025 budget

Monument Sanitation District, Oct. 16 – Board considers rate increase; discusses 2025 budget

By Jackie Burhans and James Howald

At its October meeting, the Monument Sanitation District (MSD) board continued its discussion of rates that began at its September meeting. The board also discussed the proposed 2025 budget drafted by District Manager Mark Parker. The board voted on a resolution authorizing the El Paso County treasurer to collect MSD’s delinquent accounts. Parker gave the board an operational report.

Rate increase of $5 or $10 per month debated

Board Secretary Janet Ladowski opened the discussion of rate increases, saying a $10 per month increase would “cause a huge uproar.” She suggested an increase of $5 per month initially and re-evaluating in two years to see if that amount had covered inflation, costs, and interest rates. She said the board should print information about what it was doing and why.

Board President Dan Hamilton agreed the increase should be $5 and recommended that the district move to online payment of bills and discourage payment by check. He proposed a $10 per month increase with a discount of $5 if the customer paid their bill online.

Ladowski said many of the district’s customers were elderly and Hamilton’s proposal would punish some for not being comfortable paying their bill online.

Parker estimated that 75% of the district’s customers pay by check, with the remainder paying online. The trend is moving toward online payment, he said, adding “the older generation loves their checks.” Board Treasurer John Howe said older customers distrust online payment. Hamilton responded that checks are less secure than online payment. Parker said online payment would not save the district much time or effort because the district’s software systems were not well integrated. Ladowski said customers who write checks use their check registers to track their finances and many would need training to switch to using their computers for that purpose. Parker pointed out that MSD spends $14,000 per year mailing bills to its customers.

Returning to the issue of rate increases, Director Tony Archer said an increase of $5 per month would cover inflation. Howe said that costs at the Tri-Lakes Wastewater Treatment Facility that MSD shares with the Town of Palmer Lake and the Woodmoor Water and Sanitation District were increasing dramatically, and MSD’s budget would need to include those costs.

Parker reminded the board that the rate study done by GMS Engineering Inc. recommended that the rate be set to allow the collection of up to $55,000 per year above operating expenses to cover capital projects.

Operations specialist Jim Kendrick agreed with Howe that treatment costs were rising due to changes in treatment limits and “emerging constituents of concern.” Treatment costs are operational, he said, rather than capital costs. Parker confirmed that treatment costs had doubled in the last year.

There was a consensus among the board members that an increase of $10 per month was too high, but no specific action was taken. Parker said the board would need to make a final decision in November.

2025 budget presented

Parker included a proposed 2025 budget in the board packet for the meeting and asked the board for feedback. The proposed budget listed total income increasing from $2.520 million in 2024 to $2.696 million in 2025. Total expenditures are budgeted to increase from $1.213 million in 2024 to $2.913 million in 2025. The 2025 budget allows for a 5% increase in MSD salaries and a new employee.

Parker said that 2024 was a banner year for interest income, with MSD earning between 4.5% and 5% on its COLOTRUST account. He questioned whether that would continue in 2025. The funds budgeted for engineering services are expected to rise in 2025 because in 2024 MSD was able to use funds from the American Recovery Plan Act (ARPA) for those services. ARPA funds will not be available in 2025, he said.

Parker said the 2025 budget would have to include funding for capital projects such as manhole repairs, lining some of the older service lines, and increased costs at the treatment plant. Parker explained janitorial costs would fall in 2025 because a bonded and insured cleaning company had given the district an estimate that was half of what it was currently paying.

The board took no action following the discussion.

County treasurer to collect on delinquent accounts

Parker told the board there are 13 delinquent accounts, most with balances under $5,000.

The board voted unanimously in favor of Resolution 10162024-1, which authorizes the county treasurer to collect on those accounts.

Manager’s report

In his manager’s report, Parker said the lift stations were working well, there were no issues with the tenants renting space in the district’s building, and improvements to the district’s supervisory control and data acquisition system (SCADA) were complete except for one radio that needs to be replaced.

Parker told the board that he had identified four properties that were receiving sewer service but were not within the MSD service area. He said he would provide details and ask the board to approve their inclusion at the November board meeting.

Parker updated the board on a six-unit building on Raspberry Lane that had encountered problems with a private common sewer line owned by the Homeowners Association. Parker assured the board that the district’s infrastructure was not the cause of the problem.

**********

Monument Sanitation District meetings are held at 9 a.m. on the third Wednesday of the month in the district conference room at 130 Second St., Monument. The next regular meeting is scheduled for Nov. 20. See https://MonumentSanitationDistrict.org. For a district service map, see https://MonumentSanitationDistrict.org/district-map. Information: 719-481-4886.

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

Other Monument Sanitation District articles