Capital Improvement Costs Outpace Growth in Perry Park Water District
Typographical error doubles new fee — long term plan raises questions about future funding
The April 15th meeting of Perry Park Water and Sanitation District (PPWSD) focused on clear communication with residents. Covering a wide range of topics, the meeting ran over two hours, and attendees were encouraged to provide feedback and ask questions. Some of the biggest and most important questions for the District were not addressed.
Residents of Perry Park are facing steeply increasing fees for water and sewer service. On the heels of a Sewer Capital Fee approved in March, Directors announced this week that fee will soon double.
Perry Park is left wondering: Why the additional increase only one month later? And will that be the last of the increases?
Long Term Capital Improvement Plan
The Sewer Capital Fee of $45 every other month that Directors approved in March was actually an error. They explained that the increase was intended to be $45 per month ($90 on customers’ bimonthly bills), but the lower amount was noticed to the public and approved by the Board as a result of a typo. Directors will restart the mandatory public notice process, and customers can expect to begin seeing the correct $90 fee on their bimonthly bills by the end of summer.
The Sewer Capital Fee is intended to pay the costs of an $8.25 million certificates of participation agreement with a 20-year term for improvements to the Waucondah Waste Water Treatment Plant — that project is already under construction. (The total cost of the project is over $9 million, and the District is funding the difference with cash reserves.) The District has set no end date for that $90 Sewer Capital Fee.
Certificates of participation are a funding mechanism used by many local government entities to pay for large capital expenditures. They are essentially a loan in the form of a lease agreement. The lender provides capital, and the local government makes lease payments for a defined period of time to pay off the capital and interest for the loan. Certificates of participation have been controversial in Colorado because their structure as a lease agreement creates a mechanism for skirting TABOR’s requirements for voters to approve government debt obligations.
PPWSD Directors shared their Capital Improvement Plan at the April meeting, as part of an effort to maximize transparency with residents. However, a detailed look at the plan raises significant questions about how future improvements will be funded. Those questions did not come out at the April meeting.
Although it was not discussed at the April 15 meeting, the District’s next large capital outlay ($11.5 million) is scheduled to begin in 2032 for the Sageport Wastewater Treatment Plant. That $11.5 million project would begin in year six of the District’s 20-year term on the certificates of participation for the current Waucondah project. If the $90 fee per billing cycle is covering only the Waucondah improvements, where will the funding for the even greater cost of the Sageport improvements come from?
Castle Rock Water Discussions
Directors confirmed that discussions are ongoing for the possibility of selling or leasing the District’s excess renewable water to Castle Rock Water. Due to lower-than-average snow pack, stream flows of that renewable water are currently at about 30% of normal flow, raising questions about whether there will be any excess water available to sell this year.
In years with average stream flows, PPWSD has rights to more renewable water than its current water treatment plant (Glen Grove) is capable of processing. Directors explained this as one reason for exploring the possibility of selling excess water to Castle Rock. Closing any deal with Castle Rock for that water would likely require a trip to water court.
The District’s Capital Improvement Plan includes no scheduled expenditures to increase the capacity of its Glen Grove plant before 2045, and the current estimate for 2045 improvements is nearly $8 million. That project is scheduled to start two decades from now — 13 years after the Sageport project. Meanwhile, the District will continue to add wells as needed and draw from the aquifer groundwater rather than increasing the use of renewable water to meet the District’s needs.
Drought, Water Restrictions, and Wildfire Risk
The 70% reduction in stream flows PPWSD is experiencing is not unique. However, Director Arthurs noted that municipal reserves in Douglas County remain stable for now. Directors discussed increased wildfire risks and various water restrictions and incentives, including Castle Rock’s water rebates to encourage conservation efforts ranging from landscaping and irrigation choices to toilet upgrades. The board asked for feedback from attendees on how to communicate with residents about water conservation and did not take action to initiate incentive programs or restrictions, noting that there have never been water restrictions in the District before.
Perry Park LIDS (Local Improvement Districts)
Although not on the agenda, a brief discussion of Local Improvement Districts (LIDs) occurred in response to a resident question about development and how it affects PPWSD. There are three separate proposals in process with the county that would affect 128 lots in Perry Park designated as “currently unbuildable parcels.” Owners of those parcels have worked together to petition Douglas County to assist in the building of roadways, storm and sanitary sewers, and gas and electric lines to benefit those owners — and to be funded by those owners. This would add users to PPWSD, helping to spread out costs among a larger number of ratepayers, but without cost to the District itself for constructing the necessary infrastructure.
Other Water News in Perry Park
Water Meter Replacement
Concerns about unaccounted for water, possibly due to outdated meters, have prompted the District’s $1.5 million meter replacement project. However, communication issues are slowing that effort, especially for residents with inside meters. Perry Park water customers can contact Flush Plumbing to schedule installation.
Board Vacancy Filled
Directors appointed longtime Perry Park resident, geophysical engineer, and environmental consultant Maggie Bierbaum to fill the vacancy created by the March resignation of Jim Maras. The board noted that the next election will be in May 2027 for three seats; current Directors Gary Peterson and Brian Arthurs will be term limited, and Bierbaum will be eligible to run to retain her appointed seat.
Questions we need answered about PPWSD’s future:
What risks to PPWSD’s water rights could be associated with going to water court to contract for the sale or lease of excess renewable water to Castle Rock Water?
What plans does the District have for funding the capital improvements of Sageport Water Treatment Plant ($11.5 million) that are scheduled to begin in 2032?
What additional fee increases can Perry Park residents expect to fund future capital improvements for the District?
And yet I see Parker, and other towns, water their medians with lovely arching streams of water that evaporate before reaching the ground.
We have to get serious about water.