Sage Pointe water/sewer crisis near Sterling: CDPHE cease-and-desist and rate jumps

Just west of Sterling, Colorado, residents in the Sage Pointe neighborhood say their private water and sewer system is failing under a Colorado state cease-and-desist order—and that monthly bills are rising fast.

Denver7 Investigates reports that residents were dealing with a state cease-and-desist order tied to past code violations, and that residents’ combined water and sewer rates jumped last year from $200 to $400 a month. The report also says rates could soon rise as high as $800, with another rate increase set to be approved during a Tuesday-night meeting referenced in the story.

What CDPHE’s enforcement bulletin lists

Colorado’s Department of Public Health and Environment (CDPHE) documents enforcement actions in a “Water Quality Information Bulletin.” In the February 2024 bulletin, CDPHE lists “Sage Pointe Homeowners Association, Inc.” under “Enforcement – New action” as a domestic “Notice of Violation/Cease and Desist Order,” dated January 11, 2024, in Logan County.

Why residents say costs are escalating

According to Denver7, the original wastewater treatment plant “didn’t meet code” and was shut down after the cease-and-desist order. Denver7 says CDPHE allowed a rented wastewater treatment system to stay in use while the board works on a longer-term fix—but that the temporary solution is expensive.

Denver7 also reports hardship concerns from residents, including fear that without relief from the state, Logan County, or the City of Sterling, foreclosure could be the only outcome for some households.

How the Sage Pointe Metropolitan District sets fees and rates

Sage Pointe’s water and wastewater charges are not run by a city department. Denver7’s reporting points to the Sage Pointe Metropolitan District—an entity governed by a board of directors.

A transparency notice filed through the Special District Association of Colorado (SDACO) lays out the district’s regular board-meeting information. It describes a hybrid meeting at the CSU Northeast Regional Engagement Center at 304 Main Street in Sterling, held the first Tuesday of each month at 6:00 p.m.

The same SDACO notice includes a “Notice of Proposed Action to Fix or Increase Fees, Rates…” for domestic water and sanitary sewer services, stating that the board would consider such changes at a regular meeting at 6:00 p.m. on Tuesday, October 7, 2025. Residents should treat that as the district’s stated process for fee/rate changes, while still checking the specific meeting agenda and outcome for the Tuesday-night vote referenced by Denver7.

What local records say about connecting to the City of Sterling sewer

Denver7 reports that City Manager John Sheldon said there has never been a formal request to join the city, but that annexation into Sterling (and sewer access) is being explored. The report says that in 2024, the Sage Pointe HOA inquired about connecting to the city sewer system. Denver7 says the city’s written response described conditions such as homeowners paying for the building and maintenance of the line, meeting water quality requirements, and signing an agreement that would give the city a unilateral right to annex when eligible.

Logan County commissioners’ work session minutes from November 18, 2025 also reflect discussion of next-step options. The minutes include an exchange noting that DOLA cannot help with a temporary fix and that a permanent fix would be required before significant investment. They estimate the cost to run a pipeline to connect to the City of Sterling at $10 million to $15 million, discuss potential tapping points near Highway 14 and County Road 37, and note that even if residents connect, the connection is not “free.”

What residents should watch next

• Tuesday-night rate decision details: Denver7 reports another rate increase was set to be approved during a Tuesday-night meeting. Residents should look for the meeting agenda, vote outcome, and any posted fee/rate schedule.
• Compliance and treatment timeline: Denver7 says CDPHE permitted a rented system while a longer-term fix is pursued. Watch for updates on how long temporary arrangements continue and when permanent capacity is scheduled.
• Any concrete sewer-connection terms: County and city discussions point to possible sewer connection options, but homeowners should watch for specific terms (who pays, what work is required, and how any annexation provisions work), not just general discussions.

Sources

• Denver7 Investigates: failing water system leaves Logan County residents facing foreclosure fears
• Colorado CDPHE water enforcement bulletin (Sage Pointe-related notice/cease-and-desist documentation)
• SDACO/Special District Association of Colorado transparency notice (Sage Pointe Metropolitan District)
• Logan County Commissioners work session minutes (includes Sage Pointe + Sterling sewer connection discussion)
• Sage Pointe Metropolitan District public meeting notice (PDF)