Parker Water and Sanitation and Stonegate are in merger discussions

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From The Denver Post (Bruce Finley):

…utility managers propose to merge water systems to spread debt and increase efficiency. It’s the sort of consolidation that industry leaders anticipate, in Colorado and nationwide, as problems with water supply and aging pipes intensify. But the Parker-Stonegate deal has set off a political storm. On Wednesday night, more than 170 Stonegate residents attended the latest informational meeting, and a majority indicated in an informal vote that they opposed the merger. “Nobody in our neighborhood understands what is going on,” said Stonegate resident Lisa Nejedlow, whose residential water pressure recently decreased sharply. “I don’t want to go with Parker. I don’t trust them. I think they have too much debt ($214 million) and they are trying to go into other people’s pockets.”[…]

If Parker (population 45,000) and Stonegate (11,000) were to merge their water systems, it would be the first signficant consolidation in the south metro area. There are more than 25 water utilities on the Front Range. Suburban developers created most of these special-use districts. Some serve as few as 25 people…

Stonegate and Parker residents would face property-tax hikes as well as rising water bills whatever they do. But hooking up with Parker’s system could solve Stonegate’s problem of having to upgrade its sewage-treatment system — estimated to cost at least $10 million. That expense would add to Stonegate’s $30 million debt from sinking 13 super-deep municipal wells, building a pool and community center and other spending, said Stonegate metro district manager Mitch Chambers…

Stonegate board members are divided. “We need to explore other options,” said Mike Sjobakken, one of two board members who are opposed, noting that a former Parker utility-board member who resigned amid controversy has been hired to help Parker project who would pay what if the utilities merged. “It would make sense to consolidate,” but maybe with multiple entities, not just Parker, he said.

More South Platte River basin coverage here.

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