The 2022 budget for Southwest Metropolitan Water & Sanitation District was adopted by the board of directors on November 19, 2021. The proposed budget projects a revenue of approximately $3M with total expenses at $3.6M resulting in a deficit of $618,000 and a reduction in District reserves from $24.7M to $24.1M. The detailed 2022 Budget can be found on the District’s website under Financial Information.
The district has five main sources of revenue. The following is the projected revenue from each source in 2022:
- Projected Service Charge – $2.2M (73.6%) – In 2020 the water and sewer service fee increased from $7.00 to $8.00 per month per ¾” equivalent water tap. Over the past few years, the surcharge has been gradually increased to maintain cash reserves and continue to provide the appropriate level of maintenance to the District’s water delivery and wastewater collection systems. Due to operating revenue falling short of operating expenses as well as the increase in construction labor and materials costs, the board of directors is considering raising the monthly service fee for 2022. The District does not receive any property tax revenue from its customers.
- System Development Fees – $600,000 (20.2%) – The projected tap fee revenue will be generated from the Wild Plum and Silver Leaf developments.
- Investment Income – $98,930 (3.3%) – This is interest earned on the district’s reserves. Recent economic conditions have significantly impacted market yields resulting in the decline in investment revenue.
- Other Income – $74,110 (2.5%) – 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. That 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 – $7,500 (0.5%) – 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.
District Expenditures are as follows:
Operating Expenses – $2.17M
- 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 – $1.45M
- There is one water main replacement project and one sewer capital project scheduled for 2022. More details on this project can be found in the district’s Capital Master Plan.