The District assesses a monthly service fee based on the size of each customer’s water tap (see service fee chart below). The service fee is billed by Denver Water on each customer’s monthly water bill. The revenue is collected by Denver Water and remitted to the District.
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|
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%. 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 increase the monthly service fee from $5 to $12 per ¾” equivalent (meter size) starting January 1, 2022. Without the increase in the service fee, the district runs the risk of depleting its cash reserves as well as risk to public health and safety if unable to perform the proper level of maintenance required to deliver safe, reliable drinking water to our customers.
If you have questions about the service fee, please contact the District at firstname.lastname@example.org or 303-979-2333.