The 2023 Budget for Platte Canyon Water and Sanitation was adopted by the Board of Directors on November 18, 2022. The proposed budget projects a revenue of just over $4.9M with operating and capital expenses totaling $4.7M. This will result in a surplus of approximately $228,000 and an increase in District reserves from $8.8M to $9M. The detailed 2023 Budget can be found on the District’s website under Financial Information.
The district has five main sources of revenue. The following is the projected revenue from each source in 2023:
- Property and Specific Ownership Tax – $2.14M (43.8%) – This revenue comes from the mill levy that is applied to properties in the District. For 2023, the property tax mill levy will remain at 7.104 mills, which is the same levy assessed since 2005.
- Contract Maintenance – $1.7M (33.5%) – the District provides administrative and facility maintenance services provided 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 – $967,000 (20%) –The monthly service charge or “infrastructure fee” was implemented by the board of directors in October 2019 at $5.00 per ¾” equivalent (tap size) service connection and was increased to $12.00 per month at the beginning of 2022. The infrastructure fee will remain at $12 per month per 3/4″ tap size in 2023. The service fee will allow the district to maintain adequate reserves and mitigate the impact of significant increases in construction labor and materials cost to perform the water main replacements required in the next ten years.
- Investment Income – $109,410 (1.25%) – This is interest earned on the district’s reserves. Recent economic conditions have significantly impacted market yields resulting in the decline in investment revenue.
- System Development – No tap fee revenue is projected for 2023. Water and sanitary sewer tap permits continue to decline because there is little undeveloped property within the District boundaries.
District expenditures are as follows:
Operating Expenses – $3.3M
- Personnel Expenses – $2.1M (63.4%) – The District is largely a service-oriented organization with most of the administration and facility maintenance and operations performed by 15 full time employees. Therefore, most of the operating expenses are related to personnel costs.
- Operations – $586,830 (17.7%) – The budget for contract emergencies is projected to increase by $180,000 in 2023 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. Those are performed by outside contractors.
- All Other Expenses -$627,779 (18.9%) – Also in the operating expenses are items such as production of the District newsletter, maintenance of the website, maintenance of computer and office equipment, dues for membership in professional associations, and contracting for legal and engineering services.
Capital Projects and Expenses – $1.3M
- One water main replacement project is budgeted for 2023 and involves the replacement of aging cast iron pipe with PVC pipe in S. Depew St. from W. Ken Caryl Ave. to W. Canyon Trail. A detailed explanation of this project can be found in the District’s Capital Master Plan.