Today, we manage our water in a way that makes it difficult, if not impossible, to get sufficient liability insurance on our water infrastructure.

We are legally responsible for providing treated water to Elk Springs AND all our other customers in Pinyon Mesa, Elk Mesa, Auburn Ridge, and the school district property in our purview (not all of those properties are developed or currently pay water fees, but we are still responsible for their water).

This means that capital expenditures, repairs, and upkeep come from the Elk Springs water reserve fund. Water system costs are extremely high, sometimes into six figures. Because we are legally required to provide water to Elk Springs AND nearby property and member associations, if there is an issue with neighboring water infrastructure, Elk Springs must expend reserve funds to cover the cost of repairs and provide continuous water to customers.

And if those costs exceed the reserve funds, we must then ask Elk Springs residents to cover any remaining costs.

We want to change this. The insurance product we have for the HOA isn’t designed for the risk of running a water business. The proposed water district pooled insurance program is designed for special districts like this to have adaquate coverage. This gap has been identified for many years by past Boards. 

Simply put: A water district has access to appropriate insurance. By creating a district, we spread water liability across ALL water customers. That means it is not disporportionately on Elk Springs residents - and it is sufficient to protect against the magnitude and complexity of potential water system issues.

No. Our water rights will remain as they are today. 

With a water district, members of the original PUD (this means Elk Springs AND our neighbors in Pinyon Mesa, Elk Mesa, Auburn Ridge, etc. ) will still own our water rights.

With a water district, our (and our neighboring customer's) water rights will simply be protected by a larger entity than just our HOA.

Today, we need you to vote ‘yes’ or ‘no’ to put this issue on the ballot in November.

A vote today will NOT initiate the creation of a Water District; rather it will allow the HOA to file formal paperwork with the state and county. It will also allow our neighboring water customers in Pinyon Mesa, Eagle Ridge, Auburn Ridge, Elk Mesa, and the school district to consider this issue in coming months and vote on its official creation in November.

Any ballots in this June 10th vote that are omitted, forgotten, or lost will be counted as a “no.” We need 67% of our HOA owners to approve this measure now.

If this ballot measure is approved: Over the summer, the proposed draft Service Plan will be reviewed by the Garfield County Planning Commission and others. Opportunities for public comment will be available multiple times.  Then, in November, members of the Elk Springs HOA and our neighbors in our proposed water district will be asked to vote on the formation of a Water District on the electoral ballot. 

The Los Amigos Water District refers to Elk Springs and neighboring current and future water customers that Elk Springs is legally required to supply water to. That means that residents of Pinyon Mesa, Eagle Ridge, Auburn Ridge, Garfield County School District, the commercial lot and Elk Mesa are included in our proposed water district.

Note: Some of our neighboring water customers are not yet receiving water as development is still not complete, ie. Eagle Ridge and Elk Mesa. Others, like Pinyon Mesa and Auburn Ridge have been customers of our water system since their neighborhood’s completion. Nonetheless, a future water district will include representatives of all neighborhoods and developments.

This proposed water district will be the first time owners can have more control, equity, transparency and the ability leverage incentives for water conservation.

A water district is structured to provide greater protection, financial flexibility, and long-term sustainability for water. That is its primary purpose. Without it, we are left without the ability to obtain adaqute insurance. We also can't leverage water conservation incentives and programs designed to manage water in an increasingly dry environment. A water district will remove this disproportionate burden on Elk Springs and distribute the liability across all users. 

Water infrastructure expenses like line maintenance, meter and valve upkeep, water quality testing, and catastrophic issues like major line repairs can often cost hundreds of thousands if not more. 

Because water infrastructure is complex and costly, this could be a significant, unexpected additional cost to Elk Springs residents.

Water districts are designed to manage these complexities - they are entities with financial, liability protection, transparency, and adaptability built in to adjust to residents needs and water management challenges over time.

In order to create the opportunity to establish a water district, we need the vote of the Elk Springs owners. We would be the largest representation in this district, so our votes are important.

We are currently focusing on engaging Elk Springs owners with the June 10th vote. This has been the focus of the stearing committee for over a year.

Because this issue is so important, we anticipate future info meetings, further converstations with owners, and refinement of the draft Service Plan before we vote again with the larger district.

We will not formally submit a Service Plan without having vote of the Elk Spring members confidently successful. Our timeline has been a June 10 vote and a November vote, but if we need to hold a special election on a different future date, we will do so. We want to move forward with the support of you, our membership.

• First, we need a ‘yes’ vote on the current special ballot from 67% of owners
  

• Then, the draft Water District Service Plan goes through a review and filing process with the County Clerk, County Commissioners, Planning Commission, Colorado Department of Local Affairs (DLA) and the CO Secretary of State.  

• In November (or on a special election date tbd), voters from the entire special water district will have the opportunity to vote on the creation of a water district. Eligible voters in Pinyon Mesa, Eagle Ridge, Auburn Ridge, Garfield County School District, and Elk Mesa who are included in our proposed water district can vote.

• If passed, the court approves the Los Amigos Water District under Colorado law, which formally establishes our water district in 2027

This is a 2-step voting process.

We need owners in Elk Springs to pass this vote in order to get it on the November ballot (or a future special election ballot). Because an Elk Springs-based vote is required to get this issue to the wider ballot, we need owners to vote now.

Bigger picture: We are voting now because our Steering Committee has been thinking ahead and working all year to develop the detailed special water district plan. This vote allows us to continue refining the proposed plan for a water district. There will be a future date for all district members to officially establish a Water District.

Special water districts are local entities created under Colorado state law that are responsible for providing clean water to residents of a geographic area. In our case, this includes the developments of Elk Springs, Pinyon Mesa, Eagle Ridge, Auburn Ridge, and Elk Mesa as well as a small parcel of the school district. 

A “water system” includes the treated water supply, water lines, hydrants, valves, meters, water storage tanks, wells, electrical controls, chemical systems, easements and water rights. 

The HOA currently owns and operates our water system with the help of the voluntary HOA water committee, effectively functioning as a water company for Elk Springs and nearby properties within the Los Amigos PUD.

Water districts maintain and secure legal water rights, operate storage wells, monitor wells and aquifers, treat water, and distribute it to customers, which in our case is owners in Elk Springs, Pinyon Mesa, Eagle Ridge, Auburn Ridge, and Elk Mesa. The water district is responsible for infrastructure maintenance, drought planning, and implementing conservation rates to balance demand with available supply.

While the powers and responsibilities of a specific water district are determined when it is created, water districts adopt rules, rate structures, usage guidelines, and charge users for services.

Water districts are run by boards made up of elected representatives from all the geographical areas in the district as well as dedicated administration staff. Engineers, hydrologists, legal and specialist expertise are available as contractors inform management and best practices.  

The proposed water district will handle all water-related responsibilities, removing that burden from the HOA. The water district will take full ownership and responsibility for operating, maintaining, and administering the water system and all related functions.

A water district is designed for greater transparency and accountability for all customers. So issues like reconciling pumping with metering, waste and loss, changing rate structures, conservation, fluctuating operating costs, and auditing will be more transparent to all customers. 

Please see the Service Plan for details.

Funding for a water district is determined when it is created, and the Service Plan outlines the proposed financial arrangements in greater detail. Typically, a water district’s funds come from local user fees, property taxes, and connection charges, supplemented by state and federal grants or loans for infrastructure projects.  As the proposed Service Plan progresses through the Planning Commission process towards ratification, there will be opportunities for public comment.

Background: Water District funding mechanisms

Water Rates: Revenue will be generated through monthly water consumption charges and base fees, which will be tiered to reflect use. Everyone in the district will be charged based on their usage, which is common practice. 

Public Funds and Debt: Water districts have access to capital financing at reduced rates through governmental bonds. Most districts can issue bonds and other forms of debt. Bonds can be secured through mill levies (property taxes).

 State Revolving Funds (SRFs): Federally funded, state-administered programs providing low-interest loans for drinking water projects will be available to the proposed water district

Federal/State Grants: Grants from agencies like the EPA or USDA Rural Development for specialized projects, such as lead line replacement or rural water improvements will be available to the proposed water district

If we are successful with this vote, and a water district gets approved in November, the existing Elk Springs reserve fund will shift into the water district. Essentially, we're moving our reserves to a new entity that will use the reserves just as we would have, for our benefit and the benefit of the water system as needed.

The water district will be funded by proportionate inputs from all customers in the district. For Elk Springs residents, the Service Plan outlines a transfer of the majority of our water reserve into the proposed water district (we are the largest proportion of the water district and our share will reflect this). All third party users will be required to come in with the same initial contributions, either paid up front or as and additional monthly fee. 

Additional funds will not be required.

Any excess Elk Springs water capital reserves remaining after our proportionate input would be available to transfer to initiatives such as road replacement or general HOA improvements.

As a local government, the Los Amigos Water District is required by Colorado law to establish rates fees and charges that are applied equally - and the fees must be based upon the costs of providing service. 

Usage Rates are therefore designed to cover the costs of operating the water system and can be assessed only to customers who are active and receiving water service. 

The Capital Reserve Fee and System Development Fee are instead designed specifically for the long-term preservation of the water system and funding long term capital plan programs.  Because all properties inside the District boundaries benefit equally from long-term preservation and maintenance of the water system capital assets, all properties in the District boundaries (whether the lot is actively using water or not) must be charged the same equal Capital Reserve Fee.  The System Development Fee is designed in the same way but is reduced based on past contributions to a capital reserve by various customer bases in the area served by the current water system.

By its nature, a water district is a quasi-governmental institution that is desiged to manage a shared resource, which in this case, is water.  It's always adjustable by the water district board of directors and by the members of the district who can elect them. So yes, there are processes to petition to leave the district and become customers of the district if that is desired.

No property tax or mill levy is being proposed with the formation of our district since the system is already constructed and established (the district would have to go to voters if there was a need to impose a mill levy in the future). 

If debt is to be secured by tax revenues, voters in the district must approve the plan. This tax would be levied on property in the district based on appraised value, regardless of services received, and must comply with the Property Tax Code.

Elk Springs’ water comes from the Spring Valley aquifer which is located underground, north/northeast of the Elk Springs neighborhood. The aquifer is fed and recharged from rainwater and limited groundwater from surrounding hills.

We have 2 wells on the Elk Springs property, a pump house, 2 storage tanks, and a chlorination station which moves treated water to residents, storage, and onto our neighboring users. There are miles of underground pipe, valves and pressure reducing stations that encompass the bulk of the system.

Learn more about water in Colorado here.

Find more water conservation resources for homeowners here

Aquifer is marked with the dark blue line on this image

In short, yes. But in the long term, we hope they go down.

The current water rate structure worked when there were a few dozen homes in Elk Springs and water usage was low. But those times are long passed. We need to change as the number of users grows year over year. We know that 15,000 gal/month is not sustainable based on our current allotted water rights and community usage. 

Currently Elk Springs users pay a variety of fees for water, including a base water assessment, a capital reserve assessment, and a charge for water over 15,000 gal/month. We will move rates to a system that aligns more with best practices.

We expect that some costs will go down. There are indirect costs that the HOA expends related to thewater operations, such as administration, snow plowing, legal & insurance, that are embedded in the regular HOA dues. These are expected to go down. 

It is proposed that the semi-annual Water Assessment and Capital reserve will be replaced by a simple monthly water fee for 10,000 gallons. Additional usage for outdoor irrigation will be billed on a tiered rate structure. This better aligns with the legal water rights, physical water supply, best practices for our Valley, and is more equitable to all users. It promotes conservation and discourages unintentional overwatering. 

With the creation of a water district, costs will ideally go down over time, depending on individual use.  Tools like better metering, water saving incentives, tracking and modelling will all become more available to the proposed water district. Over time, this can dramatically improve water use efficiency, which saves money for both the district and individual households. Nearby water districts like Snowmass have seen considerable savings in water rates with tools like smart metering, regular irrigation maintence, native vegetation, user education on how to water landscaping in our ecosystem, and most importantly, greater transparency. We hope to find the same sucesses in the future.

NOTE: The proposed tiered water usage structure is in draft form and would not be adopted until the district is formed in 2027. Opportunities for public comment will be available.

While not anticipated, water system maintenance costs can be significant. A water district provides a centralized administrative entity that can address costly infrastructure more equitably across all users. Insurance coverage, federal funding, loans, grants, and levy’s will apply to all water district customers. 

Remember that we in Elk Springs are required to provide water to neighboring water customers. So, if costly issues arise, we are responsible for repair and/or providing water service – to Elk Springs owners AND to neighboring customers. This means that should a large expense occur that the reserve fund cannot cover, Elk Springs residents will be responsible for the difference. 

Water is treated at the chlorination building located in the eastern part of Elk Springs, near the well.

We are currently in a 24yr drought cycle and facing increasing water scarcity in our aquifer and in our region. We rely on an aquifer and are in a neighborhood that is rapidly developing, meaning water conservation, loss and waste, use and scarcity will become more salient issues.  

Managing water and protecting our water rights is only going to become more complex in the immediate future, and a Water District positions us to better handle this challenge. We are going to need expertise and best practices to guide water management and use as more homes are built in our area.

We are one of the remaining areas in the valley that has not yet formed a water district; it is imperative that we join our peers to manage our water supply more appropriately.

Many of us choose to live in Elk Springs for the unique environment. The forests and grasslands on top of our aquifer are dominated by pinon-juniper forests and sage grasslands, as well as legacy pasture and agricultural fields. These forests are considered semi-arid ecosystems. They are dominated by Colorado piñon pine (Pinus edulis) and junipers (Juniperus spp.), which grow together. Our forests support sensitive biological soil crusts and are crucial habitat for wildlife, including the threatened piñon jay and migratory elk herds. 

Pinon-juniper ecosystems are very sensitive to extended droughts like the current drought we are experiencing in Colorado, and are at risk from bark beetles, fire, drought, disease, and heat stress. Unlike wetter parts of the Roaring Fork Valley where you can find Aspen trees, cottonwoods, willows, we are in a water-limited environment where our landscape reflects the water scarcity. Native, trees, plants and grasses are best suited to our environment.