The 2019 budget for Southwest Metropolitan Water and Sanitation District was adopted on November 29, 2018. The budget proposes general fund expenditures of $1,888,458 and capital expenditures of $335,154. The District’s total expenses are $2,223,612 with total revenue projected to be $1,913,431. The deficit of $310,181 will be funded by a transfer from the District’s reserve fund. The service fee used for operations, maintenance, and rehabilitation of the of the District facilities is currently $5.00 per month per ¾” equivalent service connection but will increase to $7.00 per month per ¾” equivalent service connection effective January 1, 2019. The fee is imposed on customers’ Denver Water bills, with the revenue collected by Denver Water and then sent to the District. The service fee revenue for 2019 is budgeted at $1,253,616, which is based on 14,924 ¾” equivalent taps.
The 2019 District budget includes financial projections for the 10-year period between 2019 and 2028. The Ten-Year Financial Plan projects the reserve fund balance to decrease $310,181 to $23,521,664 at year end 2019. Over the ten-year planning period the reserve fund balance is projected to decrease $732,966 to $22,788,698 at year end 2028. This decrease in reserves is primarily due to the steady volume of capital water projects anticipated over the planning period. The entire 2019 Budget is available on the District’s website at www.swmetrowater.org under Financial Information.
Service fee revenue will increase in 2019 since the assessment per ¾” equivalent water service connection will increase to $7.00 per month. This is expected to produce $1,253,616 in revenue. The fee is projected to increase by $1.00 in 2020, resulting in an assessment of $8.00 per month, per equivalent ¾” water tap. Service fee revenue is projected to be the largest source of revenue providing approximately 63% of the total revenue over the ten-year planning period. Service charge revenue will enable the District to meet its operating needs through 2024.
Water and sanitary sewer tap permit revenue for the District continues to decline because there is little undeveloped property within the District boundaries. The District projects $81,000 in tap fee revenue in 2019.
Total general fund expenses budgeted for 2019 are $1,888,458, a total of $159,430 more than the amount allocated in 2018 of 1,602,075. Southwest Metro administrative services will continue to be provided by Platte Canyon. The 2019 budget for these services is $547,020, $53,520 more than the 2018 budget of $493,500.
While the District performs nearly all routine facility operation and maintenance services with its own forces, emergency and remedial maintenance services such as excavation work and street restoration are conducted by contractors retained by the District. Proposed expenses for these services for 2019 are budgeted at $386,015 which reflects a $56,415 increase from the amount budgeted in 2018.
Administrative and professional consulting services include such items 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 professional legal and engineering services. These services total $32,300 which reflects a $23,045 decrease from the 2018 budgeted amount. The costs for the newsletters, $31,600, includes printing, postage, and mailing for quarterly newsletters or postcards in 2019. The District budgeted $20,145 in 2018 for the redesign of the District website in order modernize the user experience and provide for a more customizable customer outreach platform. The 2019 budget includes $500 for the maintenance of the new website.
The budget for capital expenses in 2019 is $335,154, $673,852 less than the amount budgeted in 2018. Two capital water projects are budgeted for 2019. The first project consists of replacing 701 feet of 12-inch ductile iron pipe in
- Garland St. between W. Walden Ave. and W. Nova Pl. in the Meadows Subdivision at a cost of $158,945. The second
capital water project includes the replacement of 272 feet of 6-inch ductile iron pipe in S. Holland St. between W. Laurel Pl. to the end of the cul-de-sac in the Meadows Subdivision at a cost of $52,360. A detailed explanation of these projects is included in the District’s Capital Master Plan for 2019-2028.