Estes Park board considers $150 monthly Prospect Mountain repayment surcharge
The charge would remain on included properties until paid off; undeveloped parcels are excluded. The town plans a one-time early-payoff window, though the final amount could change as it addresses a tank issue and reconciles costs.
A staff member asked the Estes Park Town Board on Sept. 22, 2026, to approve a $150 monthly repayment surcharge for the Prospect Mountain water project.
Mayor Gary Hall asked whether the proposed $150 monthly repayment would amount to about $1,800 a year over 40 years. A staff member confirmed the 40-year term. The surcharge would be calculated after project completion and the USDA loan, a staff member said.
The repayment process covers 134 separate parcels and excludes undeveloped parcels because they are not current or former Prospect Mountain Water Company customers, a staff member said. The charge would remain with a property until it was paid off, and the town planned a one-time window for early payoff, a staff member said.
A staff member said all customers were connected to the system and the old system had been decommissioned, with minor punch-list items and road restoration still remaining. The project tank was still weeping, and the town had received a significant-deficiency notice from CDPHE about it, a staff member said. The town was working with the contractor’s representatives to determine how to resolve the tank’s weeping, a staff member said. A staff member said the repayment amount could change depending on how the tank’s weeping was resolved and that the project remained at partial substantial completion.
Trustee Mark Igel said Prospect Mountain customers faced uncertainty about what they would ultimately pay. A staff member said they would not guarantee the final amount but intended for it to come down. A speaker said the contractor was responsible for delivering a complete tank and that the town was negotiating with the contractor to ensure it was done correctly. Trustee Chris Eshelman said, “I hope the $150,000 is a fairly safe estimate. I'd hate to see that number go up a lot to the ratepayers when it's not their issue with what the contractor is doing.”
The project received more than $10 million in grant funding, which a staff member said could not have been obtained without the town’s support. A staff member said the calculation used a 2.375% interest rate on a loan portion slightly less than $5 million, with repayment over 40 years. The monthly repayment calculation included USDA debt service, a debt-service reserve, a short-lived-asset reserve and an administrative cost, a staff member said.
The town had notified the benefited customers and planned further outreach, a reconciliation of final costs, a possible adjustment of the monthly repayment and a one-time payoff option, a staff member said.