La Junta wastewater fund posts $88,271 July shortfall as interest, sludge costs near budget

La Junta’s Wastewater Fund recorded an $88,270.96 shortfall in July, when expenses of $338,571.43 exceeded revenue of $250,300.47, according to the city’s July 2026 wastewater financial report. The fund remained ahead year to date, with $2,061,242.23 in revenue and $1,771,864.55 in expenses, a difference of $289,377.68.

Two cost lines were nearing their annual budgets. Loan interest totaled $181,042.70 through July against an $186,000 budget, or 97%. Sludge disposal reached $240,930 against a $250,000 budget, or 96%, leaving $9,070 unencumbered. July sludge-disposal spending was listed at $32,144.

The report lists $11,651,429.34 in wastewater bonds and lease obligations under “notes payable”: $9,541,444 remaining on 2015 bonds, $1,827,008.04 on 2019 bonds and $282,977.30 in leases payable. A broader detailed-liability total of $11,809,870.23 also includes items such as accounts payable, accrued benefits and bond interest. The records do not identify how much is currently payable, repayment schedules, maturity dates or loan and lease terms.

The records do not explain the July shortfall or the near-budget interest and sludge costs. They also do not establish whether a separate $15,700 sludge-hauling liability should be added to the $240,930 in sludge-disposal spending. The earlier July wastewater report does not identify the hauler, invoices, service dates, quantities, rates or contract terms behind the liability.

No wastewater-specific budget amendment, rate change, transfer, additional appropriation or other remedy appears in the reviewed records. The Aug. 11 Utilities Board packet lists departmental reports and action on a board vacancy but no wastewater-finance item. The July meeting minutes contain no discussion of the liability, debt, interest costs or additional funding. A rate discussion in the packet concerns sanitation, not wastewater.

The wastewater operations report says a dewatering press and related sludge, flocculent, filtrate and drainage lines had been installed, with operator training scheduled for Aug. 10. The record does not establish whether the training occurred, whether the press changed hauling costs or needs, or whether it resolved the $15,700 liability, according to the operations report.

A later financial report or board discussion would need to identify the liability’s underlying invoices or contract, clarify current and long-term debt obligations and repayment schedules, and state whether the wastewater budget is expected to cover the rest of 2026 disposal costs.