The 2024 proposed budget projects a revenue of approximately $6.3M with operating and capital expenses totaling near $6.7M. This will result in a deficit of approximately $433,000 and a decrease in district reserves from $9.9M to $9.5M. The mill levy will remain at 7.104 mills. The monthly service fee will increase to $18 per 3/4″ meter starting January 2024.
The district has six main sources of revenue.
Property and Specific Ownership Tax – $2.57M (40.88%) – This revenue comes from the mill levy that is applied to properties in the district. For 2024, the property tax mill levy will remain at 7.104 mills, which is the same levy assessed since 2004.
Contract Maintenance – $1.87M (29.76%) – The district provides administrative and facility maintenance services to the nearby water and sewer utilities of Southwest Metropolitan, Bow Mar, and Columbine Water and Sanitation Districts, and also Valley Sanitation District.
Projected Service Charge – $1.45M (23.37%) –The monthly service charge or “infrastructure fee” was implemented by the board of directors in October 2019 at $5 per ¾” equivalent (tap/meter size) service connection and was increased to $12 per month at the beginning of 2022. The monthly infrastructure fee will increase from $12 to $18 per 3/4″ meter starting January 2024. The service fee will allow the district to maintain adequate cash reserves while mitigating the impact of significant increases in construction costs to perform the water main replacements required in the next ten years.
Investment Income – $346,000 (5.51%) – The average yield on district investments in 2024 is projected to be 3.5 percent.
Miscellaneous Revenue – (0.48%) Miscellaneous revenue consists mainly of asset disposal and fire hydrant use fees.
System Development – No tap fee revenue is projected for 2024. Water and sanitary sewer tap permits continue to decline because there is little undeveloped property within the district boundaries.
Total expenses for 2024 are budgeted at $6.7M:
Operating Expenses – $3.5M
Personnel Expenses – $2.3M (66.7%) – The district is largely a service-oriented organization with most of the administration and facility maintenance and operations performed by fifteen full time employees. Therefore, most of the operating expenses are related to personnel costs.
Operations – $497,720 (14.3%) – Water related operating and maintenance expenses for 2024 are budgeted at $398,795. Sanitary sewer related operating and maintenance costs are budgeted at $98,925. The budget for water contract emergencies will remain at $180,000 in 2024 which represents an average of one water break per month. The district requires emergency and remedial maintenance services such as excavation work and street restoration which are performed by outside contractors.
All Other Expenses -$660,703 (19%) – Additional operating expenses include items such as vehicle and equipment maintenance, building lease, communications, production of the district newsletter, maintenance of the website, maintenance of computer and office equipment, dues for memberships in professional associations, and contracting for legal and engineering services.
Capital Projects and Expenses – $3.2M
Three water main replacement projects are budgeted for 2024. Project details can be found in the district’s Capital Master Plan.
