Click here to view the SDS Monthly Report

Short-term Investment, Dividends for Generations

Cost Savings Opportunities

We are always looking for ways to save money on SDS construction and to complete the project under budget. We are cutting project costs by:

  • Redesign and value engineering. We have saved more than $85 million so far.

  • Monitoring commodities’ prices to get the best value and buying raw materials when prices are low.

  • Maximizing competition among local contractors and benefitting from lower bid prices due to the competitive marketplace.

  • Borrowing money at historically low bond interest rates.

 

Phase I Budget

The budget for Phase I, actual costs tracked to date and the forecast costs for Phase I are shown in the graphic at right.

Phase 1 Budget Process – Actual Costs through May 2016




In July 2009, the Colorado Springs Utilities Board approved the SDS Phase I budget, schedule and financing plan.

Click here to view July 2009 Presentation to Utilities Board.



Water Rates

When the SDS Phase I plan was approved in July 2009, Colorado Springs Utilities was projecting a series of annual water rate increases through 2019.

Fortunately, due to historically low interest rates secured on the bonds, favorable market conditions and rigorous project management, Colorado Springs Utilities has reduced the amount and number of needed rate increases.



In Colorado Springs, water rates increased 12 percent in 2011 and 2012. And, in 2013 and 2014 water rate increases are 10 percent. If the current positive trend continues for lower costs, additional future water rate increases for SDS are not anticipated for Phase I construction.

These water rate increases are not all related to SDS. About two-thirds of the rate increases is funding SDS; the other one-third is necessary to fund critical maintenance and operation of the existing water system.

The average household expenditure for water is much less than other common household costs (see graphic below). 

 

 Click on graphics to enlarge.


Development Fees

Development or tap fees for new construction in Colorado Springs have increased by about 138 percent since 2002 to help pay for SDS. That’s an average of $9,000 per new water tap.

 


SDS Phase I

  • Pueblo Dam connection
  • Raw and finished water pipeline
  • 3 water pump stations
  • 1 water treatment plant
 

Contact Us By Mail

Colorado Springs Utilities
Southern Delivery System
121 S. Tejon Street
Colorado Springs, CO 80947

 

For General Questions

Phone: 855-737-4968
Email: sdsinfo@csu.org
Media contact: 719-668-8793

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