Woodmoor Water and Sanitation District, Dec. 16 – Board wraps up rate increases and 2025 budget, swaps water discount for land

2025 rates and budget
Developer offers land for reduced water bill
Chilcott Ditch management contract renewed
District chooses new health insurance carrier
Residents question development, water supply
Executive session

By James Howald

In December, the Woodmoor Water and Sanitation District (WWSD) board concluded two public hearings: the first on proposed rate increases and the second on the proposed budget for 2025. Both hearings were opened at its November meeting and kept open until December to meet requirements to notify the public before a final vote.

The board considered a request from a developer to exchange land on the east side of Lake Woodmoor owned by the developer for a reduction in the cost of supplemental water the developer is purchasing for the Waterside development on the east side of Woodmoor Drive. The board also voted to extend for a year existing options to purchase supplemental water at the lower rate charged in 2024.

The management contract between the Chilcott Ditch Co. and WWSD was renewed for 2025. The board voted to move to a new health insurance carrier to reduce costs. It heard comments from two residents. The meeting ended with an executive session.

2025 rates and budget

Board President Brian Bush continued the public hearing on the proposed rate increases that was opened at the board’s November meeting. The rate increases were published on the district’s web page < 30 > days before the December meeting. Base rates, volumetric rates, tap fees, and supplemental water rates all saw increases. A detailed discussion of the proposed rates can be found in the December issue of OCN at https://wp.ocn.me/v24n12wwsd/.

One resident commented that he did not like to see rates going up. There were no questions or comments from the board and Bush closed the hearing.

Following the hearing, the board voted on Resolution 24-03 to approve the rates. Directors Bill Clewe, Roy Martinez Tom Roddham and President Bush voted in favor; Director Dan Beley voted no.

Bush then continued the hearing on the 2025 budget. Clewe noted that the insurance costs for the Tri-Lakes Waste Water Treatment Facility, which WWSD owns and operates with the Towns of Palmer Lake and Monument, had increased by $2,000 since November and the 2025 budget had been updated to reflect that additional cost.

There were no comments from the public and Bush closed the hearing on the budget.

The board voted on Resolution 24-04 to adopt the budget and appropriate the necessary funds. Beley was the only no vote.

Developer offers land for reduced water bill

District Manager Jessie Shaffer told the board La Plata Communities had asked the district if it wanted three lots adjacent to Lake Woodmoor that were difficult to develop. The developer asked to be allowed to transfer water rights from those lots to property it is developing on the east side of Woodmoor Drive known as the Waterside development. Transferring the water rights would reduce the amount of supplemental water La Plata Communities would need to buy to complete its Waterside development, Shaffer said. The district sells supplemental water at a higher rate than the standard allotment, which is one-half acre-feet of water for each acre of land.

Shaffer explained the costs of the land sale would be split between the district and La Plata Communities. The Supplemental Water Usage and Service Agreement between the two specifies the district will supply 8.117 acre-feet of supplemental water to the waterside development for a cost of $235,000 per year.

In response to a question from Bush, Shaffer said the agreement with La Plata Communities would use the 2024 supplemental water rates, not the higher 2025 rates.

The board voted unanimously to authorize the exchange.

Following the decision on the land exchange, Shaffer asked the board to consider keeping rates unchanged for existing option contracts in good standing to buy supplemental water.

Developers sometimes sign contracts with WWSD that give them the option to buy supplemental water at a later date as a way to ensure water will be available when they decide to proceed with a development. The developer pays a fee for the option to buy water at a later time.

The board voted to keep the 2024 rate of $29,000 per acre-foot of supplemental water in place for existing option contracts.

Chilcott Ditch management contract renewed

Shaffer asked the board to approve an updated version of the district’s contract with the Chilcott Ditch Co. The district provides administrative services, staff, and equipment to manage the Chilcott Ditch, which conveys water from Fountain Creek to shareholders in the company and to the Calhan Reservoir. Shaffer said the new contract had only minor changes, one being an increase in hourly wages for employees from $39 to $40.95 per hour.

The board voted unanimously to approve the amended contract.

District chooses new health insurance carrier

Shaffer showed the board a comparison of terms provided by Colorado Employers Benefit Trust (CEBT), the district’s current health insurance carrier, with those of United Healthcare. He said the premium increases from CEBT were “staggering,” at 13.5% for employees seeking to cover only themselves in 2025. He applauded Office Manager Cory Lynch for researching other providers. Lynch found that United Healthcare could provide a better plan with a lower maximum out-of-pocket cost, at an annual saving of $430 per employee.

The board authorized Lynch to pursue switching to United Healthcare.

Residents question development, water supply

Tom Griesser told the board he opposed the Monument Ridge East development. He pointed out that when the district purchased the Woodmoor Ranch in 2011 for its water rights, a Renewable Water Infrastructure Fee had been put in place to pay off the debt for that purchase. He asked why residents are paying a fee that will benefit the developer of Monument Ridge East.

Bush answered that anti-development sentiment was on the rise in the district. He explained that if the district has water available, it provides it to developers, but developers pay a high cost for supplemental water service and the board has raised tap fees about 40% over the last few years. Tap fees are paid once when a connection is made to the district’s water and sewer infrastructure. Bush also mentioned the Loop water reuse project, which will provide renewable water to the district as groundwater supplies decrease.

Brian Peterson pointed out the debt for the Woodmoor Ranch would be paid off in 2031 and asked if the district would retain water rights from the ranch in perpetuity. Bush said the Loop could provide up to 3,000 acre-feet per year to the district, which currently uses about 1,100 for the entire service area. The Loop could replace groundwater wells that are expensive and risky, Bush said.

Executive session

The meeting ended with an executive session to determine negotiating positions and to confer with legal counsel on potential agreements with the Loop, Classic Homes and Rex Colorado Corp.

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The next meeting is on Jan. 13 at 1 p.m. Meetings are usually held on the second Monday of each month at 1 p.m. at the district office at 1845 Woodmoor Drive. Please see www.woodmoorwater.com or call 719-488-2525 to verify meeting times and locations.

James Howald can be reached at jameshowald@ocn.me.