The 2024 budget for Southwest Metropolitan Water & Sanitation District was adopted by the board of directors on November 17, 2023. The proposed budget projects a revenue of approximately $4.2M with total expenses of $3M resulting in a surplus of $1.2M and an increase in district reserves from $23.2M to $24.4M. The service fee will remain at $12 per 3/4″ meter. The district does not receive property tax revenue from district customers.
The district has five main sources of revenue. The following is a forecast from each source in 2024:
- Projected Service Charge – $2.2M (53.3%) – Due to operating revenue falling short of operating expenses and the increase in construction labor and materials cost, the board of directors raised the monthly service fee to $12 per 3/4″ meter in 2022. The service fee will remain at $12 per 3/4″ meter in 2024. The district does not receive any property tax revenue from its customers.
- System Development Fees – $1.2M (29.5%) – The projected tap fee and participation fee revenue will be generated from the Santa Fe Park South development.
- Investment Income – $580,490 (13.9%) – The average yield on district investments in 2024 is projected to be 2.5 percent. The district relies on investment income to contribute to the offset and funding of general operations.
- Other Income – $124,500 (3.0%) – The office lease income consists of a partner district’s share of operating, maintenance and repair expenses for the administrative office and garage facility located at 8739 W. Coal Mine Avenue. Platte Canyon Water & Sanitation District is contractually obligated to pay 30% of all building costs including projected routine maintenance and repair costs and minor capital improvements. Miscellaneous income consists primarily of fire hydrant use fees which are assessed for use of district owned fire hydrants.
- Contract Service Fees – $15,000 (0.4%) – These fees consist of a biennial charge to the City of Littleton in the amount of $7,500 to transport a set amount of wastewater flow from the City through two of the district’s main wastewater interceptors.
Total expenses for 2024 are budgeted at $3M.
The 2024 budgeted amount for administration, operations, and maintenance is $2.7M and includes the following:
- Water and sewer operating and maintenance costs consist of maintenance materials and the district’s share of labor, equipment, and overhead costs incurred by their contract operations partner district (Platte Canyon Water & Sanitation District).
- Occasionally, the district requires emergency and remedial maintenance services such as excavation work and street restoration. Those are performed by outside contractors.
- Building maintenance expenses include costs for landscaping, janitorial, heating and air condition maintenance, elevator maintenance, painting of interior and exterior of building, and other general repairs and maintenance of the office building.
Capital Projects and Expenses – $311,498
- There are no water main replacement projects scheduled for 2024. The capital water project budgeted in 2023 that consisted of replacement of 2,500 feet of 16-inch cast iron pipe in S. Santa Fe Dr. has been delayed due to the proposed new development in the area.
- Two capital sewer projects are budgeted for 2024 totaling $44,610. The projects consist of slip lining 275 feet of 10-inch vitrified clay pipe and 66 feet of 8-inch cast iron pipe and rehabilitation of the adjoining manholes.
- Other capital expenses include: $25,000 for the annual contract for cure-in-place pipe that are scheduled on an as needed basis, office building projects budgeted at $90,300, and an emergency reserve in the amount of $125,666 required by the Tabor Amendment.
The entire 2024 budget can be found on the district’s website under Financial Information.
