At its April 14 meeting, the San Juan Water Conservancy District (SJWCD) Board of Directors heard a budget update from SJWCD treasurer Joe Tedder regarding the district’s ongoing spending on litigation with the Pagosa Area Water and Sanitation District (PAWSD).
Tedder also reported on progress on fixing errors in filing the district budget with the Colorado Department of Local Affairs (DOLA).
At the district’s March 17 meeting, Tedder explained that the SJWCD’s February tax distribution was held by DOLA due the district’s 2025 budget submission not being accepted.
SJWCD president Candace Jones stated that this was due to a technical or communication issue and not due to the content of the budget.
Tedder explained that he believed that he submitted the correct forms on Dec. 29, 2024, but that DOLA did not receive it due to what he believed were issues with the department’s submission portal.
However, Tedder stated that the error had been corrected and the SJWCD’s tax revenues should be released soon.
At the April 14 meeting, Tedder opened his update by explaining that the SJWCD had begun receiving money again from property taxes, although the district “had got down to the last $600 in our checking account before” funding resumed.
Tedder added that he knew funding was going to resume and that he “wasn’t too worried” when the district’s accounts dropped to low levels.
He explained that the district’s legal expenses are in line with previous expectations, and that the board’s previous assumption that its legal expenses line item would be overrun by about $15,000 if litigation with PAWSD is concluded by the middle of 2025 will be accurate.
However, he noted that he could not predict the costs if the lawsuit continues for 18 months, as PAWSD board members have suggested.
He noted that excess spending in the legal and public education categories of the SJWCD budget would be covered by contingency funds included in the SJWCD budget until the district knows the costs will exceed those funds.
Tedder then stated that the district would assess how much of its engineering budget is likely to be spent in 2025 and potentially cover costs with this money.
If all the engineering funding is likely to be spent, he stated that the district would hold a budget hearing early in the third quarter of 2025 and consider increasing the legal and public education spending included in its budget.
Currently, Tedder explained, he is planning for the amount spent on engineering for the district’s reservoir project to be decreased and money to be shifted to legal and public education expenses.
Oaths of office
At the April 14 meeting, the SJWCD board also swore in new board member John Kappelman and returning board member Charles Riehm for two-year terms.
Prior to the oaths of office, Jones explained that returning board member Robert Hagberg will also be sworn in for another term at a later date due to his being absent from the meeting.
josh@pagosasun.com
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