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OCN > 2604 > Donala Water and Sanitation District, March 19 – District weighs financial trends and capital project impacts

Donala Water and Sanitation District, March 19 – District weighs financial trends and capital project impacts

Highlights

  • DWSD is considering a debt-increasing project package, including Northern Monument Creek Interceptor (NMCI) participation, which would require voter approval and could raise annual costs, with more details to be refined by the next board meeting.
  • Financial trends show revenues and expenses are tracking to budget for water and wastewater, with a clear downward trend in water sales as customers reduce usage and adopt xeriscaping.
  • Capital projects: NMCI participation would cost about $90 million total with DWSD's share around $11 million, plus National Environmental Policy Act (NEPA) permitting responsibilities; rate changes and other project costs will be more clearly outlined after further analysis.
  • Fourteen resumes were received for the general manager position, four finalists identified, and interviews scheduled for March 27 with final decisions to be made by April 7.
  • April bills will reflect a 5% rate increase for water and wastewater; wastewater increases average about $2 per bill.
  • An MOU for Willow Creek Ranch fire mitigation was signed, outlining a non-binding framework and potential DWSD cost up to $140,000, with funding considerations and possible external grants to cover remaining costs.

By James Howald and Jackie Burhans

In March, the Donala Water and Sanitation District (DWSD) board reviewed financial trends and potential capital projects and how they might impact debt and rates. It also heard updates on hiring a new general manager, discussed upcoming rate changes, reviewed the election calendar to consider putting increased debt on the ballot, and signed a memorandum of understanding (MOU) with a fire mitigation company.

Interim General Manager Christina Hawker introduced new budget charts to provide a quick financial snapshot. The first chart showed revenues and expenses are progressing relative to the annual budget for both water and wastewater. All financial activity is within expectations for the year, she said.

The second chart showed a seven-year comparison of water usage to help monitor consumption throughout the year, she said. Board Director Kenneth Judd noted that there was clear downward trend in water sales. Hawker said the average is 750 acre-fee per year and that a lot of customers were xeriscaping and not watering as much in the summer.

Water consultant Brett Gracely of Plummer said that as he drives through Donala’s service area, he sees residents replacing portions of their lawn that are hard to keep green with mulch and rock; he also said that an earlier survey of appliance stores indicated strong demand for front-load washers, and only low-flush toilets are no longer available to purchase. With over 2,700 customers, that is what is driving water usage down, he said.

Judd said it would be prudent to develop a strategy to deal with declining revenue. President Wayne Vanderschuere suggested this become an agenda item for the strategic planning workshop on March 26.

Capital projects

Vanderschuere said DWSD had received a term sheet outlining the cost of Northern Monument Creek Interceptor (NMCI) participation. The total cost would be $90 million, to be shared among all participants, and DWSD would require voter approval to increase borrowing capacity to cover its share of construction and ongoing operating costs, which would be about $11 million. Hawker reported that Colorado Springs Utilities said DWSD can formally request to join NMCI at any time. Once a request is made, current participants will meet within 30 days to consider negotiations, and DWSD would be responsible for the additional permitting required by the National Environmental Policy Act (NEPA).

Hawker said she had been working with rate consultants to project rate changes due to four major infrastructure projects, including the Loop indirect potable water reuse, NMCI, and sole operations of the Upper Monument Creek Regional Wastewater Treatment Facility (UMCRWWTF). Given the complexity, Hawker said she would need more time to provide a more accurate picture of the financial implications of each of the projects. She expects to have additional information by the next board meeting.

Note: DWSD operates the UMCRWWTF, which currently includes Triview Metropolitan District (TMD) and Forest Lakes Metropolitan District (FLMD) as additional users who share the operational costs proportionally to their use. TMD and FLMD have expressed interest in NMCI, which would leave DWSD bearing the full price of running UMCRWWTF far below its capacity. Consultant Roger Sams from GMS estimated that DWSD’s costs would rise from $800,000 to around $2.5 million in the first year, if TMD and FLMD pull out.

Vanderschuere said the board would need to try to connect all of these disparate but intersecting options at the strategic workshop.

Progress on hiring general manager

Judd said that 14 resumes had been submitted for the general manager position, and he and Deardorff had analyzed them separately, both coming up with the same four names as finalists. Their criteria included relevant experience, total years of work experience, local network connections and management experience. Judd recommended that all four applicants be interviewed on the same day, yielding one or two candidates who would be submitted for background checks. Vanderschuere scheduled the interviews for a special board meeting on March 27, with a final decision to be made at a special board meeting on April 7.

April water bills to include new rates

Vanderschuere noted that the increased rates would appear on the April bills. Billing Administrator Ashley Uhrin noted there is a 5% increase across the board for the base and tiered usage rates for water and wastewater. Board member Kevin Deardorff noted the wastewater increase averages around $2. Hawker said there was a chart on the web as a quick reference (see https://tinyurl.com/donala-2026rates).

Election calendar

Hawker highlighted key dates and actions needed to put a debt service increase out to vote this November. DWSD would need to notify the county clerk and recorder that formal action has been taken to participate by July 24. DWSD would need to adopt a resolution by August and ballot content would need to be certified by September.

Hawker noted that the timeline is very short and there might not be enough time to reach out to the community to communicate important needs. She recommended considering the May 2027 special district election instead to give more time for engagement and education. She did not yet have the full election calendar beyond needing to certify the ballot by the first Friday in March 2027.

Vanderschuere said the board would talk about this at the strategy workshop.

MOU signed for Willow Creek Ranch fire mitigation

Hawker reported that the Arkansas River Watershed Collaborative, which presented a proposal for fire mitigation at DWSD’s Willow Creek Ranch property with a 50% match, asked for an MOU to provide a framework for cooperation and indicate intent. The MOU is not binding until a final contract is executed, she said. She estimated the cost, at the high end, would be $2,000 per acre for the portion to be mitigated, totaling $280,000 of which Donala would pay $140,000.

Hawker noted that money set aside for cleaning well 9A in anticipation of the Aquifer Storage and Recovery pilot study is eligible for a cash match grant from the Colorado Wildlife Conservation Project, which would free up funds for Willow Creek mitigation. Vanderschuere directed Hawker to look for other sources of funds to cover Donala’s portion. The board unanimously voted to sign the MOU. The work would start later in the summer or fall, Vanderschuere said.

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The next regular board meeting is on Tuesday, April 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.

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