Frequently Asked Questions
Please contact WSDM District Managers with any questions.
- Why did the bill go up so much for 2024? The bill was increased to $125.00/ month for the debt service fee to accommodate for the necessary revenue needed to pay the refinanced Series 2023 Obligated Bonds and keep the maturity date (payoff time) the same.
- Why were the 2015 Bonds refinanced? The Cascade Metropolitan District Board's goal (and accomplishment) of refinancing the bonds were to 1 – lower the interest rate, 2 – eliminate the balloon payment scheduled initially, 3 – eliminate the 4% annual fee increase to residents by establishing a fixed fee until the maturity of the bonds, and 4 – Ensure the length of the bonds to be paid off was not extended.
- How long will debt payments continue? When will it be paid off? The 2023 Series Obligation Bonds are set to mature as of December 1, 2036.
- How much was the Bond (debt)? The Series 2015A Obligation Bond is in the principal amount of $3,500,000 and the Series 2015B Obligation Bond is in the amount of $1,500,000. The Interest rate on the bonds is 5.5% annually. The Series 2015A and B Bonds were refinanced in 2023 to be the Series 2023 Water Revenue Refunding Bond in the amount of $4,480,000. The Interest rate on the bonds is 5.0% annually.
Why did the bill go up this year (2022)? The bond payment schedules identify “balloon” payments to occur at the end of the term of the bonds. For the district to collect the proper principal to make the balloon payments, the monthly debt service fee should increase at a rate of 4% annually, unless the District is able to refinance before then, lowering the bond payment interest rate and eliminating the “balloon” payments.- Will the rate go up in the future? The Debt Service Fee (starting 1/1/2024 at $125.00/ month) will NOT increase. The Monthly Operations fee (currently $8.34/ month) is subject to increase based on the Operational expenses of the District.
- What are the future plans for the District? The District plans to pay off the debt so they can dissolve the District. This is the only function of the District and there are no plans for any other services.
- What are the Bond payments? The District makes monthly payments towards the Bond fund to fund the December Principal & Interest payment. You can review the monthly payment made by going to the Board Meeting Packet (CLICK HERE) and scrolling to the Payables page.
- Why do we have to pay? The District was formed in 2004 and the property owners in the District were obligated by state statute to pay the rates, charges, and fees of the District. Title 32 of state statute keeps this obligation with the property and not account holders. This includes the fees required to pay the Operations and the Debt Service of the District. If you bought the property after that time, the existence of the District was disclosed by a title commitment arranged by the seller.
- What service does Cascade provide me? The current service we provide is the management of the bond debt (Series 2023) to repair and improve the system so that Colorado Springs Utilities would take over water service, operations, and the water distribution system. This management includes audits, bookkeeping, state and bond covenant reporting, billing, collections, and etc.
- Why do I pay Colorado Springs Utilities and Cascade Metropolitan District? The District provided water service until 12/1/2020 when the District turned over the water distribution system to Colorado Springs Utilities. However, the District still has the obligated debt to pay off.
- Why did Colorado Springs Utilities take over for water service? In 2005 the District purchased the assets of the Cascade Town Company and the Cascade Public Service Company. These entities provided water to the citizens of Cascade since the 1920’s. Faced with increasing water quality standards by the State of Colorado that required buying treated water from CSU and disputes regarding water rights and other legal matters arising from litigation in 2011, the District entered into an Agreement with Colorado Springs Utilities that required the District to repair and upgrade the system to meet CSU standards, to be taken over by CSU. The bonds were refinanced in 2023 and the turnover of the District was accomplished on 12/1/2020.
- What happens if I do not pay this? Not paying the associated fees subjects the property to a collection process adopted by the District pursuant to state statute and law, which includes a property lien or certification to the County Treasurer for the collection with property taxes. This collection process includes additional collection fees either imposed by the district or legal counsel (including the preparation of written notifications) or by the El Paso County Treasurer.
CLICK HERE for the latest information on the Cascade MD water transition to CSU!
JANUARY 2021 UPDATE: CLICK HERE FOR FREQUENTLY ASKED QUESTIONS
April 6, 2020 Update: The Board of the Cascade Metropolitan District No. 1 is committed to completing the turnover of the District’s water system to Colorado Springs Utilities. In order to be as transparent as possible, please see below some of the frequently asked questions we have been hearing.
Is our District (CMD) water system going to be turned over to Colorado Springs Utilities (CSU)? Why?
Yes, CMD will be turning over the water system distribution to our current bulk water provider CSU.
On 2015, the CMD Board and CSU entered into an agreement to transfer aging and costly to maintain water system to CSU. For this to occur, CMD agreed to upgrade our water system to their standards and get our water loss below 20% (the water losses have averaged over 40% since 2015). In 2018, and 2019 CMD upgraded our water system and reduced our water loss from a high of 70% to below 10%
When will the turnover occur?
The plan is for the turnover to occur mid to late fall 2020.
What do I need to do? Will Colorado Springs Utilities contact me?
CMD and CSU are working on the conversion now. CSU is ordering new meters and other materials. CSU plans on starting meter exchanges the 2nd quarter of 2020. CSU will take over CMD's water system the 4thquarter of 2020.
CMD will be in touch with you in the spring of 2020 to update your service agreement with the District to allow CSU to operate the system.
Every water meter will need to be exchanged to CSU's meter. At the time of the meter exchange the customer will need to provide access to the water meter or to your home to allow CSU to place their water meter in the homes or businesses.
Will our water bill go down?
CSU is working on what Cascade water users will be charged. This is the monthly operations charge and the water consumption fees.
Will the Debt Service Fee of $78.00 go away when CSU takes over the water system?
No. The Debt Service Fee is to pay for the reconstruction of our water system. CSU would not take over our old system until we lowered the water loss below 20%. CSU will not take on our outstanding debt We will have to pay the debt separate of CSU's water bill. The plan is to continue to bill this on a monthly basis.
Please check back often, we will update our information as we receive more detailed dates and times from Colorado Springs Utilities. Please contact our District Manager, Kevin Walker at Walker Schooler District Managers at (719) 447-1777 if you have any further questions.