DONALA WATER & SANITATION DISTRICT

JUNE, 2010                              www.donalawater.org                    SPECIAL NEWSLETTER

The Election is Over.  Now What?

First of all, a big thanks to all our constituents who voted in the mail ballot election, ending on May 4^th.  A thirty-three percent “turnout” is extraordinary for a special district election.  Even more impressive was the margin by which both the TABOR issues passed – 72% allowing us to issue debt, and 67% agreeing to a property tax increase if necessary to pay for it.  We are well aware of the sacrifices our customers have chosen to make in these difficult economic times, and we appreciate the trust they have put in Donala.  It is also a strong testament to the awareness our public has about the water situation in the area, and the great work our volunteer committee did in getting out the word.  Kudos to many of the HOAs that helped talk it up as well.

So now what?  Now that we have authorization to issue debt, what is the plan?  If you have kept up with the many newsletters, newspaper articles, and Town Meetings of the past, you know that we have identified infrastructure needs that will bring water in from a renewable source outside the district.  Those plans are still in place, and we are “spring - loaded” to start on some of those projects right away, once some critical pieces fall into place.  Rest assured, we are not prepared to go out and spend your money just because you said it is ok.  As of now, we have no immediate plans to raise the tax mill levy.

Key to the equation is the position of the City of Colorado Springs.  They have been investigating the idea of regional partnerships in water related services for over a year now.  We expected a resolution months ago.  Perhaps by the time you actually read this there will be one.  The importance of working with the Springs is simple – we need their cooperation to bring our water from the south to Northgate Road.  That will probably mean participating in their Southern Delivery System (SDS) – a mega-million dollar project that lays a new pipeline from Pueblo Reservoir to the Colorado Springs Utilities (CSU) distribution system.  SDS itself brings with it a myriad of associated costs, including stormwater control, management of the flows in Fountain Creek, an amendment to the CSU Environmental Impact Statement, and satisfying requirements levied by Pueblo County.  On top of all that, we still need to buy or lease the water to put in the pipe.  Our Willow Creek Ranch water from Lake County represents only about 20% of our total requirement.  There is more water in the Arkansas Valley, and we are working with suppliers and in the “three point stance” to work with CSU once the City gives the head nod for them to work with us.

As we have reported in the past, all of this “cooperation” with CSU and the associated water will be very expensive.  Perhaps too expensive.  That’s all part of the challenge – to be sure our customers can stand the outcome of any agreements we enter into.  To keep our options open, we are also participating with the group that is looking to bring water from the north – the Flaming Gorge Reservoir on the Green River in Wyoming.  This multi - BILLION dollar project from that direction would bring water to the Reuter-Hess Reservoir in Parker.  We are in the beginning months of a feasibility study to see if that project and an extension to our local neighborhood would be a better way to go.

We know we cannot afford to pursue both projects – at least not by ourselves, and there doesn’t seem to be a real interest from our neighboring communities.  At least not one with a checkbook behind it.

So what’s the hurry?  Our water supply is doing fine.  What’s the urgency to spend money now?  The answer to most of that is a matter of availability.  The water supply was available when we bought the Willow Creek Ranch.  We had an inside track and took it.  It was not going to be for sale for long.  The same idea applies to other available water in the Arkansas.  The Wyoming water would not be available for many years, even if the feasibility study says “go for it.”  However, it represents about one third of the water shortfall on the Front Range north of us.  If we don’t “sign up” for our share when it becomes feasible, someone else will, and it won’t be there later. 

A more pressing issue is the potential of three November ballot initiatives that could severely restrict the ability of small districts to even survive, much less borrow money and put in the kind of infrastructure we are contemplating.  Amendments 60 & 61 and Proposition 101 would make anything we are doing now all but impossible.  For that reason – IF we determine over the next couple of months that there will be a cooperative service agreement with Colorado Springs, and IF we determine the direction the water will flow, we plan on doing much of the work on a bond issue this year.  The bulk of the work would not start until next year when the Flaming Gorge feasibility study is done, but the financing would be secured in 2010.  Again – we do not believe we will need to raise the mill levy for this phase of work.

So that’s the plan.  As always, we welcome your suggestions and help.  We can use all the constructive ideas and criticisms out there.  If anyone has some thoughts, please call us at 488-3603 or email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  We are planning a workshop with our consultants and board members, hopefully in early July.  It will be a public meeting, and we encourage customer input.  More to come as we finalize the schedule.  We will continue to send out notices like this through the regular newsletter system (with your bills and on our website) on a quarterly basis, if not more often as the dynamics evolve.

By the way – if you did not get a ballot to vote in the recent election you might check with the County Clerk and Recorder.  We had almost 300 ballots returned “undeliverable” because folks had moved on and not changed their address with the state or county.  That might become more important to you in the upcoming November election – make sure you are indeed a “registered voter.”