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OCN > 2510 > Donala Water and Sanitation District, Sept. 11 – 2026 budget planning kicks off

Donala Water and Sanitation District, Sept. 11 – 2026 budget planning kicks off

By James Howald and Jackie Burhans

At its September meeting, the Donala Water and Sanitation District (DWSD) board heard a financial report and a presentation on the 2026 budget from Acting General Manager Christina Hawker. The board heard operational reports from district staff. The meeting ended with an executive session

Financial report

Hawker told the board the district would not reach its budgeted water sales for the year unless September and October were warmer and drier than usual instead of cooler and wetter. Expenditures are also under budgeted amounts, she said. The Upper Monument Creek Regional Wastewater Treatment Facility (UMCRWWTF) was “spot on” with 32% of its budget remaining.

She noted larger expenses for water tank rehabilitation, the Well 7D redrill, and water storage in the Pueblo Reservoir.

The board voted unanimously to accept the financial report.

Budget highlights

In her preview of the 2026 budget, Hawker noted inflation factors including:

  • Tariffs are contributing to the rise in health insurance premiums, primarily due to increased costs for imported medications. She anticipated a 17% increase in insurance costs.
  • Building and automotive insurance costs are rising because of tariffs on lumber, steel, and aluminum. She expects those costs to increase 8% to 25%.
  • The cost of chemicals will increase by 4%.
  • Salary and wage increases are projected to be 3.5%, which is in line with the utility industry across the board.
  • DWSD’s payment to Colorado Springs Utilities to convey, treat, and deliver its Willow Creek Ranch water to DWSD customers is expected to rise by 6.5%.
  • Electricity costs for the second half of 2026 are predicted to increase by 9%.
  • In her cost-of-service review, Hawker discussed three scenarios:
  • Scenario 1, in which the R. Hull Plant is rehabilitated, the Aquifer Storage and Retrieval (ASR) pilot project is fully funded, and water and sewer rates are increased by 5% annually from 2025 to 2033. This scenario has a total capital improvement cost of $17.87 million.
  • Scenario 2, in which the ASR pilot is fully funded, the Loop water reuse project annual payments are made, $2.8 million is spent on well rehabilitation, and rates are increased by 5% from 2025 to 2033. This scenario has a total capital improvement cost of $23.6 million.
  • Scenario 3, in which only the 5% rate increases are put in place. Hawker did not give a total capital improvement cost for this scenario.

Hawker reviewed DWSD’s reserve fund balances:

  • The Bond Reserve balance is $1.25 million.
  • The Capital Reserve balance is $3.7 million.
  • The Operating Reserve balance is $3.2 million.
  • The Strategic Planning Reserve is $3.9 million.
  • Total reserves are $12.1 million.

Hawker listed the costs of six capital projects to be addressed in 2026:

  • Latrobe tank rehabilitation: $500,000.
  • Camera inspection of sewer system: $296,000.
  • Well 9A maintenance: $350,000.
  • Cost analysis for the R. Hull Treatment Plant: $119,000.
  • Laughlin water rights legal work: $73,535.
  • Total costs: $1.6 million.

Operational reports

In her Acting General Manager’s report, Hawker noted that the board of the Loop water reuse project had agreed to move ahead with its discussion of a public-private partnership agreement with Tallgrass Water. Public-private partnership agreements often involve the private party providing the funds to build a project and then receiving reimbursement, plus interest, from the operating revenue.

Hawker also gave the board an update on the open house the district held on Sept. 25 at the district’s offices at 15850 Holbein Dr., adjacent to the newly redrilled Well 7D. Attendees saw highlights of the district’s 2025 projects and met district staff. She said 100 people had RSVPed for the event. See the snapshots section on page < 21 >.

In his water report, Superintendent of Water Operations Ronny Wright told the board that the recoating of the West Tank was almost complete, with only paint touchups, washing and disinfection, and a 24-hour rest period yet to be completed.

Waste Plant Operator Aaron Tolman told the board that all wastewater measurements were well within limits. He commented on district staff encountering people camping under the train trestle bridge near the UMCRWWTF, and said the El Paso County Sheriff’s Office had been contacted.

Executive session

The September meeting ended with an executive session for the board to confer with the district’s attorney on workplace complaints.

After the executive session, the board returned to open session and voted “to reaffirm the President and Vice President’s authority to liaise with General Counsel on legal matters on behalf of the board.”

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The next board meeting is on Thursday, Oct. 16 at 1:30 p.m. Generally, board meetings are held on 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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