The 2021 Budget for Platte Canyon Water and Sanitation was adopted by the Board of Directors on November 20, 2020 and projects a revenue of just over $3.86M with operating and capital expenses totaling $5.13M. This will result in a deficit of approximately $1.27M and a reduction in District reserves from $8.96M to $7.68M. The detailed 2021 Budget can be found on the District’s website under Financial Information.
The district has six main sources of revenue. The following is the projected revenue from each source in 2021:
- Property and Specific Ownership Tax – $1.8M (51.5%) – This revenue comes from the mill levy that is applied to properties in the District. For 2021, the property tax mill levy will remain at 7.104 mills, which is the same levy assessed since 2005.
- Contract Maintenance – $1.4M (37.1%) – 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 – $400,440 (10.5%) – This new service charge or “infrastructure fee” of $5.00 per month per ¾” equivalent service connection was billed to all District customers beginning in October of 2019. 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. This fee will remain at $5 until the end of 2021.
- Investment Income – $35,830 (0.93%) – This is interest earned on the district’s reserves.
- Miscellaneous (asset disposal) – This is money earned from the sale of district vehicles that are scheduled to be replaced. The District no longer sells vehicles at auction, but instead receives the trade-in value toward new vehicle purchases.
- System Development – No tap fee revenue is projected for 2021. 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 – $2.88M
- Personnel Expenses – $1.88M (65.4%) – 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 – $386,750 (13.5%) – Occasionally, the District requires emergency and remedial maintenance services such as excavation work and street restoration. Those are performed by outside contractors.
- All Other Expenses -$613,250 (21.2%) – 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 – $2.25M
- There are three water main replacement projects scheduled for 2021. 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.