By James Howald and Jackie Burhans
In April, the Donala Water and Sanitation District (DWSD) board held a workshop and a regular board meeting, both on April 18. The workshop focused on the district’s financial policy and its projected water demand. During the regular board meeting, the board heard operational reports.
Financial policy based on four funds
General Manager Jeff Hodge told the board that the district’s total reserves were $9.5 million. That total amount is divided among four funds: the Bond Reserve Fund, the Strategic Reserve Fund, the Capital Reserve Fund, and the Operating Reserve Fund.
The Bond Reserve Fund is established by the issuance of bonds, and the funds are protected by bond covenants. The funds are used to pay down principal or in the case of default. The target level for this fund is established when bonds are issued and may be recalculated as bonds are paid off.
The Strategic Reserve Fund is established with income from property taxes that exceeds annual operating and capital expenses. New water rights and new infrastructure such as storage tanks and pipelines are financed through this fund. The target level changes based on buying and building opportunities.
The Capital Reserve Fund is financed by capital revenues such as the sale of water, and the funds are used for capital projects required by water and wastewater infrastructure and for major purchases such as vehicles and major equipment. The target level for this fund varies based on development activity. Board President Wayne Vanderschuere said this fund required special attention as its current balance is $3.5 million and that amount could be dispersed very quickly.
The Operating Reserve Fund protects the district from unforeseen cost increases such as increases in water costs, wastewater treatment costs, energy costs, and emergency repairs. The fund should contain six months of average operating expenses.
In his discussion of water demand, Hodge said DWSD’s three-year average water production was 765 acre-feet per year, and its three-year average for billable water was 745 acre-feet per year. The district has about four times the storage tank capacity it requires, he said. Electricity costs 9 cents per kilowatt hour, but renewable energy will cost more, Hodge said.
Overall, Hodge estimated the district has water available to meet demand for the next five to 10 years. Once complete, Hodge said, the Loop project would provide DWSD 800 acre-feet per year, enough to meet the need for indoor water demand. He added the Loop project’s effort to include Colorado Springs Utilities (CSU) infrastructure in its design was a “dead end” because CSU was demanding Loop water have the same treatment requirements as water coming out of the Pueblo Reservoir, which was not practical for Loop water. Hodge estimated that in 10 years, Loop water would be DWSD’s primary water source.
Manager’s report
During his manager’s report, Hodge gave the board a summary of the Loop project’s progress. He said the Loop board had put out a Request for Proposal for firms to handle positioning and acquiring easements for 17 miles of pipeline that will make up the southern portion of the Loop infrastructure and will run from the Calhan Reservoir to the Hamlin Tank. The Loop board was also working on the design for a treatment facility that will be located on Woodmoor Ranch, he said.
Hodge said a quarterly meeting between himself and representatives of Forest Lakes Metropolitan District and Triview Metropolitan District to discuss operation of the Upper Monument Creek Regional Wastewater Treatment Facility (UMCRWWTF), a facility the three districts share, had been congenial and productive.
Operational reports
- In his water report, Water Operator Ronny Wright said the district’s newest well, 16A, should be in production by mid-summer. The testing so far shows the well to be viable and usable. Consultant Roger Sams said he expected the state of Colorado to take six to 12 weeks to evaluate the water samples from the well. Sams said Mountain View Electrical Association was finishing its portion of the well installation and all the necessary equipment had been purchased.
- Chief Waste Plant Operator Aaron Tolman said E. coli levels at the treatment plant were slightly higher than last month but well under the limit.
- Consultant Brett Gracely, of LRE Water, told the board that due to high water levels in the Pueblo Reservoir, which resulted from snowmelt and precipitation, water had to be released. About 499 million gallons of water belonging to DWSD had to be released, Gracely said.
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The next board meeting is scheduled for Thursday, May 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
Other Donala Water and Sanitation District articles
- Donala Water and Sanitation District, Jan. 15 – 2026 rates and fees amended (2/4/2026)
- Donala Water and Sanitation District, Dec. 11 – 2026 budget adopted (12/31/2025)
- Donala Water and Sanitation District, Nov. 20 – Water rights and exchange options reviewed (12/4/2025)
- Donala Water and Sanitation District, Oct. 9 – 2026 budget planning (10/30/2025)
- Donala Water and Sanitation District, Sept. 11 – 2026 budget planning kicks off (10/2/2025)
- Donala Water and Sanitation District, Aug. 13, 22 – General manager on administrative leave (9/4/2025)
- Donala Water and Sanitation District, July 17 – Board tours treatment facility, adjusts sewer bills (8/1/2025)
- Donala Water and Sanitation District, June 12 – Positive audit report; inconsistent waste treatment numbers (7/3/2025)
- Donala Water and Sanitation District, May 5 – Directors sworn in; district offices temporarily closed (6/7/2025)
- Donala Water and Sanitation District, April 17 – Workshop covers finances, water supply (5/3/2025)