The 2020 Budget for Platte Canyon Water and Sanitation was adopted by the Board of Directors on November 22, 2019 and projects a revenue of just over $4M with operating and capital expenses totaling $4.86M. This will result in a deficit of approximately $846,500 and a reduction in District reserves from $9.2M to $8.4M. The detailed 2020 Budget can be found on the District’s website under Financial Information.
The district has six main sources of revenue:
- Property and Specific Ownership Tax – $1.9M (49.47%) – This revenue comes from the mill levy that is applied to properties in the District. For 2020, the property tax mill levy will remain at 7.104 mills, which is the same levy assessed since 2005.
- Contract Maintenance – $1.5M (36.73%) – the District provides administrative and facility maintenance services provided to the nearby water and sewer utilities of Southwest Metropolitan, Bow Mar, Columbine, and Lochmoor Water and Sanitation Districts, and Valley Sanitation District.
- Projected Service Charge – $353,000 (8.89%) – This new service charge or “infrastructure fee” of $5.00 per month per ¾” equivalent service connection has been imposed on all District customers. The Board of Directors implemented this fee in October of 2019 and will remain at $5 until the end of 2020. The infrastructure fee was established to generate additional revenue to fund capital improvements, maintain cash reserves and continue to provide the appropriate level of maintenance to the District’s water delivery and wastewater collection systems.
- Investment Income – $185,000 (4.60%) – This is interest earned on the district’s reserves.
- Miscellaneous (asset disposal) – $9,000 (0.24%) – This is money earned from the sale of district vehicles that are scheduled to be replaced.
- System Development – $3,000 (0.07%) – Water and sanitary sewer tap permits continue to decline because there is little undeveloped property within the District boundaries. Only sewer tap fee revenue is expected in 2020.
Operating Expenses – $2.86M
- The District is largely a service-oriented organization with most of the administration and facility maintenance and operations performed by 14 full time employees. Therefore, most of the operating expenses are related to personnel costs.
- Occasionally, the District requires emergency and remedial maintenance services such as excavation work and street restoration. Those are performed by outside contractors.
- 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 – $2M
- There are five water main replacement projects scheduled for 2020. These projects will replace old cast iron pipe with new PVC pipe.
More details on these projects can be found in the District’s Capital Master Plan.