By James Howald and Jackie Burhans
The Donala Water and Sanitation District (DWSD) board met in October to hear more on the proposed 2026 budget from Acting General Manager Christina Hawker. Hawker also covered the district’s finances for September. The board voted to give a paid day off to staff who participated in the district’s open house on Sept. 25. The board heard operational reports and ended with four executive sessions, each of which was held separately because each required different attendees.
Proposed 2026 budget
Hawker gave the board a high-level summary of the proposed 2026 budget that she first presented at the September board meeting. The proposed budget puts operating revenue at $6.8 million and estimates water sales will be 5% lower than in 2025. $4 million in non-operating revenue is anticipated, including tap fees from the Urban Landing development and 50 homes that will be built near the Big R Store proposed site just north of the intersection of Spanish Bit Drive and Struthers Road. Hawker estimated total revenue at just over $11 million, factoring in a 5% rate increase for water and sewer service.
On the expense side, Hawker estimated operating expenses would be 5.4% higher than in 2025 due to increased electrical costs and general inflation. She said she had budgeted for DWSD to receive its full allotment of water from Colorado Springs Utilities (CSU), even though it typically does not use that entire amount.
General and administrative expenses will increase by 4%, driven by a 17% increase in health and commercial insurance and a 3.5% increase in salary and wages.
The proposed budget includes $1.6 million in capital costs for projects like the Loop, water tank rehabilitation, Well 9A, sewer system inspections, and securing the district’s Laughlin water rights. She estimated total expenses would be $9 million, and the proposed budget would increase the district’s reserves for future projects.
Hawker said the board could discuss changes to the proposed budget at its meeting in November. The board’s December meeting has been rescheduled to the 9th so that the board can have a final vote on the budget before Dec. 15, when the district must submit the final version of the budget to the state.
Financial report
In her financial report, Hawker said revenue from water sales was “a little short.” The district is within 26% of meeting its revenue goals for the year. 52% remains on expenses, she said, adding she expects a larger bill from CSU in coming months because the district opened its water connection with CSU in September. There were no large unanticipated expenses in September, she said.
Open house a success
Hawker said the open house DWSD held for its customers in September was successful; customers liked learning about the district’s operations and meeting staff. She said 72% of the attendees who took a survey to determine how they wanted to receive information from the district preferred email, 23% wanted a newsletter, and only 4% wanted the district to communicate through social media.
Hawker commended Helen Malenda-Lawrence of LRE Water for her hands-on presentation regarding well field management.
As a gesture of appreciation to the DWSD staff who helped with the open house, Hawker proposed they receive a paid day off. The board agreed to Hawker’s suggestion.
Operational reports
In her acting general manager’s report, Hawker discussed a court case that Parker Water & Sanitation District had taken first to the Water Division 1 court and then to the Supreme Court of Colorado. Both courts upheld the decision of the state engineer that the statewide non-tributary groundwater rules impose a total volumetric limit on groundwater withdrawals over the lifetime of the well permit, and the state engineer can specify that limit in well permits. The decision imposes new record-keeping requirements on water districts to document they are not exceeding their water withdrawal limits.
Hawker said LRE Water has been monitoring the case for DWSD and has advised the district that its current record-keeping and accounting practices mean DWSD should not have negative consequences from this ruling.
Matt Poznanovic, of Hayes Poznanovic Korver LLC, the district’s water attorney, said DWSD was well-positioned because it has strong data regarding well production.
Hawker asked the board for direction regarding access to the district’s Willow Creek Ranch property near Leadville. She said neighbors had recently requested access to the property so that they could walk to the adjoining national forest to go hunting, and that had been allowed in the past. She said the neighbors provided eyes and ears on the ranch, which is remote. She noted the district had some risks regarding liability to consider before granting access.
Board President Wayne Vanderschuere proposed requiring a liability waiver from anyone accessing the ranch, to include prohibitions on fires and shooting. He said the board wanted to maintain the ranch in its current pristine condition. He asked Hawker to prepare a liability waiver and bring it to the board at a future meeting.
Executive sessions
Following its regular meeting, the board held four executive sessions. Each was a separate item on the agenda and was attended by varying staff and consultants.
The first session was to confer with counsel regarding the Intergovernmental Agreement concerning the Upper Monument Creek Regional Wastewater Treatment Facility. It was attended by Directors Kevin Deardorff, Bill George, Ken Judd, Scott McCulloch, and Vanderschuere. Hawker, Poznanovic, and Roger Sams of GMS Inc. also attended.
The second was to receive legal advice on workplace complaints. It was attended by the board members and attorneys Dakota Spence and Linda Glesne.
The third session was to receive legal advice regarding the district’s water court application in Case No. 24CW3019. It was attended by the board members, Hawker, Poznanovic, and Brett Gracely, a water planning practice leader at Plummer.
The last executive session was held to determine negotiating positions concerning potential agreements with The Loop Water Authority and Cherokee Metropolitan District.
No actions were taken following the executive sessions.
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The next board meeting is on Thursday, Nov. 20, 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.
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, 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)
- Donala Water and Sanitation District, Mar. 27 – New water and sewer rates take effect (4/5/2025)
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