Manitou Springs needs to make a $3 million upgrade to its aging water treatment system – a cost it hopes to cut in half with a large grant. 

While the investment is large for the community of 4,800, Manitou Springs will not need to raise its water rates to cover the cost, said Jason Meyer, a principal with GMS, the city’s consultant. The city’s water revenues are healthy enough to absorb the project, even if Manitou Springs does not get a large federal grant it plans to apply for, he said during a Manitou City Council meeting Tuesday.  

“The city has been very proactive,” Meyer said. 

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The city will be re-examining its water rates again next year and that will take into account all of the water infrastructure needs, City Administrator Denise Howell told the city council. After a rate study, the city could adjust residents’ bills. The current monthly water bill is $37, Meyer’s presentation said.

The needed upcoming water treatment system upgrades include automating the plant built in 1983, which still has a significant amount of original equipment still in place, he said. 

“You won’t have to have people manning the plant 24/7,” he said. 

The systems also need repairs and additions, such as a new heating and air conditioning system, and pipes that need to be put in to transport water to waste ponds, city documents show. Some equipment, such as pumps, will be evaluated for rehabilitation because some replacement equipment is not lasting as long as older models, he said. 

The plant treats 3 million gallons of water per day and the output will remain the same because Manitou is not growing. 

The town expects to apply for a $1.5 million federal grant in October to cover half the cost of the work and will find out in December if they have been awarded the funds. The grant money would come the Bipartisan Infrastructure Law that set aside money for each state.  

It is possible the criteria for the grant may change to target disadvantaged communities and if that happens Manitou may no longer qualify for the grant, Meyer said.  

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If Manitou Springs receives the grant, it will apply for the remainder of the funds through the state’s drinking water revolving loan fund. If Manitou Springs does not receive money through the Bipartisan Infrastructure Law, then it would ask for a loan for a the full amount, city documents show. 

Once funding is in place, the city expects to put the project out for bids in March and could potentially finish construction next September, Meyer said. 

To help prevent deferred costs piling up, Howell said the city said is working on proactive maintenance programs in other departments, such as its fleet.