Due to operating revenue falling short of operating expenses, as well as the increased labor and materials costs for scheduled maintenance projects, the district’s monthly service fee increased to $12 per 3/4” meter starting January 1, 2022.
From 1996 through 2014, Southwest Metropolitan did not charge customers for reliable delivery of high-quality water obtained from Denver Water and distributed to customers, nor for collection and transportation of all wastewater discharged by District customers to South Platte Renew (the regional wastewater treatment plant). District operations were largely funded from income generated from the investment of reserve funds.
Since then, there has been an extraordinary drop in interest rates, which has led to a decrease in annual interest revenue. This has caused the district to undergo operating deficits of approximately $1M per year. Since the district does not receive any property tax revenue from its customers, the board’s financial policy is to match annual service fee revenue with operating expenses. Although the fee is billed through Denver Water’s monthly water bill, this revenue may also be used for wastewater collection maintenance and repairs.
In the past year, the district has experienced significant increased costs of items used for routine maintenance and repair activities. This includes PVC pipe, fittings, and valves, all which have seen prices increase from 20% to as high as 70%. PVC pipe costs hit an all-time high in 2021 after several chemical plants along the gulf coast were temporarily shut down due to multiple hurricanes and a lightning strike in Louisiana. Also impacting the industry was the fluke cold freeze that took place last February in Texas where several chemical plants were debilitated.
Without additional funding, the increase in construction costs and labor, along with the decrease in investment income, could ultimately result in the district being unable to provide safe, reliable water delivery and wastewater collection services to its residents. To prevent this from happening, the board of directors felt that it was necessary to raise the monthly service fee from $8 to $12 per 3/4″ meter starting January 1, 2022.
If you have questions about the service fee, please contact the District at email@example.com or 303-979-2333.
Monthly Service Fee As of January 2022
|Size of Meter||Number of Equivalent||Monthly Service Charge|
|5/8 - inch||1||$12.00|
|3/4 - inch||1||$12.00|
|1 - inch||2||$24.00|
|1.25 - inch||3||$36.00|
|1.5 - inch||4||$48.00
|2 - inch||8||$96.00|
|3 - inch||18||$216.00|
|4 - inch||36||$432.00|
|6 - inch||94||$1,128.00|