The service/infrastructure fee was established to generate additional revenue to fund capital improvements and continue to provide the appropriate level of maintenance to the district’s water delivery and wastewater collection systems. Within the district’s water distribution system is a vast amount of 60-year-old cast iron pipe, which frequently fails and results in unplanned outages, property damage, and emergency repair costs.
As part of the annual budget process, the board of directors reviews various policy issues related to the overall operations of the district including cash reserve requirements. The district’s water distribution system continues to require significant attention as portions of the system approach the end of its reliable, useful life. It is extremely important that the district maintain a proactive maintenance program and comprehensive long-range capital improvement program to detect and repair all district owned infrastructure as necessary.
Cast iron pipe in the district that failed due to electrolysis and resulted in a costly water break with damage to the asphalt and surrounding area.
To meet the financial requirements of the scheduled pipe replacement projects over the next ten years while maintaining adequate cash reserves, and absorbing increased construction costs, the board of directors feels it is necessary to increase the monthly service fee. At the December board meeting, the board will be considering increasing the monthly service fee billed through Denver Water from $18 to $25 per 3/4″ meter. This would be effective as of January 1, 2025.