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  1. 12/16/2008 2009 BUDGET APPROVED
  2. The Platte Canyon Board of Directors has adopted a 2009 budget calling for expenditure of $2,429,556, 13% less than the amount budgeted in 2008.  the Board also certified a property tax mill levy of 7.104 mills for general operations purposes and 0.032 mills to recover revenue from previous county tax refunds and abatements.  The total mill levy to be assessed upon all property located with the Platte Canyon District is 7.136 mills or $7.136 for each $1,000 of assessed value.
     
    The Platte Canyon Board also adopted budgets and certified property tax mill levies for Platte Canyon Water and Sanitation District Subdistrict No. 1 and Platte Canyon Water and Sanitation District Subdistrict No. 2.  The two subdistricts are special taxing entities approved by voters in Columbine Townhouses Three and Columbine Townhouses Four.  Residents in the two subdivisions agreed to tax themselves to replace aging private water systems.  When the water system improvements were completed, Platte Canyon Water and Sanitation District assumed ownership and future maintenance responsibility of the facilities.
     
    A summary of the budget follows.  In addition, the complete budget is posted here.
     
     
    SUMMARY
     
    The 2009 Budget for Platte Canyon Water and Sanitation District has been prepared in accordance with the modified accrual basis of budgetary accounting.
     
    Services to be provided in accordance with the 2009 budget include operation, maintenance and repair of Platte Canyon=s 78.3 miles of water distribution mains, 75.3 miles of sanitary sewer collection mains, and one potable water pumping station. In addition to the operation and maintenance of Platte Canyon=s facilities, the District will provide administrative, operations, and maintenance services to Southwest Metropolitan, Bow Mar, Columbine, and Lochmoor Water and Sanitation Districts and Valley Sanitation District. Proposed facility maintenance objectives for 2009 are described in greater detail in a separate document titled 2009 Maintenance Goals.
     
    Total revenue from all sources is projected to be $2,563,632 in 2009. Total expenditures are budgeted at $2,429,556; 13.8 percent less than budgeted in 2008. General fund expenditures are budgeted at $1,778,329; 2.6 percent less than 2008 budgeted expenses amounting to $1,826,051. Capital expenses for 2009 are budgeted at $651,226; 34.4 percent less than budgeted in 2008.
     
    Beginning funds available in 2009 are estimated to be $8,384,673. The reserve fund balance is projected to increase $134,077 to $8,518,750 at year end 2009.
     
     
    REVENUE
     
    ·                    Total Revenue in 2009 is projected to be $2,563,632, 2.2 percent less than 2008 budget.
     
    ·                    The largest single source of revenue is proposed to be tax revenue amounting to $1,427,635, 55.7 percent of total District revenue. A breakdown of assessed valuations and property tax revenue for each county is shown on page nine of the budget.
     
    ·                    System development fee revenue is projected to be $7,800; 28.2 percent less than estimated 2008 system development fee revenue. This decrease is attributed to a reduction in the number of buildable residential lots and the decline in new home construction within the District.  No change in tap fee amounts is proposed for 2009.
     
    ·                    Service charge revenue is anticipated to decrease $11,880 from estimated 2008 revenue of $17,460 due to an expected decrease in revenue received for plan reviews, construction inspections, and lift station participation revenue received from the City of Littleton.
     
    ·                    Contract maintenance revenue is projected to be $909,500 in 2009, $35,000 less than estimated 2008 revenue.  The decrease is largely attributed to the one time contribution from Southwest Metropolitan in 2008 for the upgrade to the Hansen version 8 software.
     
    ·                    Investment income is projected to decrease $103,858 from estimated 2008 revenue of $313,475.  Investment income amounting to $209,617 is budgeted for 2009. The average yield on District investments in 2009 is projected to be 2.5 percent.
     
     
    EXPENSES
     
    ·                    Total expenses for 2009 are budgeted at $2,429,556; $1,778,329 for operations and $651,226 for capital expenditures.
     
    ·                    Water and sanitary sewer operating and maintenance expenses for 2009 are budgeted at $173,925; $13,790 more than estimated 2008 expenses of $160,135 and $85,075 less than $259,000 budgeted in 2008. The budget for remedial water maintenance has been decreased from $50,000 budgeted in 2008 to $25,000 in 2009 as a result of the anticipated decrease in the number of repair and rehabilitation projects scheduled for 2009.  Sewer remedial repairs are budgeted at the same amount as budgeted in 2008.
     
    ·                    Personnel costs, budgeted at $1,200,215 for 2009 represent 67.5 percent of total operating expenditures.  The proposed budget for personnel costs is 7.7 percent more than the $1,114,523 budgeted in 2008.
     
    Personnel health benefit expenditures are budgeted at $201,000, 8.6 percent more than $185,000 budgeted in 2008.
     
    ·                    The budget for administrative expenses for 2009 is $94,350, 0.4 percent less than $94,750 budgeted in 2007.
     
    ·                    Professional and consulting fees for 2009 are budgeted at $129,500, $42,500 or 24.7 percent less than $172,000 budgeted in 2008. The budget for software management decreased $65,000 due to the completion of the upgrade to the District’s computer maintenance management system (CMMS), Hansen version 8.  Participation in the Littleton Rate Coalition has been budgeted at $20,000.  Coalition expenses will include the District’s proportionate share of the sewer rate study and legislative assistance expenses.
     
    ·                    Insurance costs, estimated to be $33,100 in 2008, are projected to increase 4.2 percent to $34,500 in 2009.
     
    ·                    Capital expenditures for 2009 are budgeted at $651.226. The capital expense budget includes a $37,802 contingency expense line item which amounts to 15 percent of the projected water and sewer capital expenses.  In addition, $76,909 is budgeted for an emergency reserve required by the TABOR Amendment. The capital expense budget is 34.4 percent less than $992,220 budgeted in 2008.
     
    ·                    Water facility capital expenses are budgeted at $202,015 in 2009, 60.4 percent less than $510,692 budgeted in 2008. Two capital water projects are planned for construction in 2009.  A detailed description of these projects is included in the District’s Capital Improvement Plan for 2009-2018.
     
    ·                    The sewer system capital project budget is $50,000, 33.3 percent less than $75,000 budgeted in 2008. This is an annual contract for cured-in-place pipe (CIPP) projects that will be scheduled on an as needed basis as determined by the District’s television inspection program.
     
    ·                    Vehicle purchases are budgeted at $203,000 in 2009 compared with $60,000 budgeted in 2008. The major expense is the purchase of a truck mounted hydraulic sewer cleaner budgeted at $175,000.  Vehicle and equipment purchases are listed in the District’s Capital Improvement Plan for 2009-2018.
     
    ·                    Maintenance capital equipment is budgeted at $51,500, 65.7 percent less than $150,000 budgeted in 2008.
     
    ·                    Total expenditures for 2009 ($2,429,556) are projected to be less than projected revenue ($2,567,533) by $137,860.
     
     
    SUBDISTRICT NO. 1
     
    ·                    The 2009 Budget includes a supplemental schedule for the Platte Canyon Water and Sanitation District Subdistrict No. 1, established by resolution of the Board of Directors of Platte Canyon Water and Sanitation District for the purpose of financing water distribution system improvements in the Columbine Townhouses III development.
     
    ·                    Revenue projected for the Subdistrict in 2009 is $31,721; $31,520 from property tax revenue and $201 from investment income.  A mill levy of 31.835 mills is proposed for assessment by Jefferson County to property owners within the boundaries of the Subdistrict.  This levy is in addition to the mill levy assessed by Platte Canyon Water and Sanitation District.
     
    ·                    Total expenses for 2009 are budgeted at $29,998.
     
    ·                    Expenditures budgeted in 2009 include principal and interest loan payments to the Colorado Water Resources and Power Development Authority in the amount of $28,525 and treasurer fees in the amount of $473.
     
     
    SUBDISTRICT NO. 2
     
    ·                    The 2009 Budget includes a supplemental schedule for the Platte Canyon Water and Sanitation District Subdistrict No. 2, established by resolution of the Board of Directors of Platte Canyon Water and Sanitation District for the purpose of financing water distribution system improvements in the Columbine Townhouses IV development.
     
    ·                    Revenue projected for the Subdistrict in 2009 is $130,057; $100,000 in loan proceeds from the Colorado Water Resources and Power Development Authority, $30,007 from property tax revenue, and $50 from investment income.
     
    ·                    Expenditures budgeted in 2009 include principal and interest loan payments to the Colorado Water Resources and Power Development Authority in the amount of $27,784, treasurer fees in the amount of $417, and a capital expenditure of $100,000 is budgeted for the replacement of the water distribution system in the Columbine Townhouses IV Subdivision.
     
     
    PROPERTY TAXES
     
    ·                    The general operations mill levy for Platte Canyon Water and Sanitation District in 2009 (tax year 2008) is proposed to remain the same as the levy certified in tax years 2005 through 2007; 7.104 mills.  A mill levy of 0.032 is proposed for recovery of abatements and refunds made by Jefferson and Arapahoe Counties in tax year 2007.  The total mill levy proposed for certification is 7.136 as compared with a mill levy of 7.121 assessed in tax year 2007.
     
    ·                    Assessed values increased this year to $184,877,060 from $184,162,050 assessed in 2008 as a result of new construction.  Seventy-eight percent of the District assessed value is located in Jefferson County and twenty-two percent in Arapahoe County.
     
    ·                    Total property tax revenue proposed for 2009 is $1,319,283, $1,029,615 from Jefferson County and $289,668 from Arapahoe County.
     
     
    LEASE - PURCHASE AGREEMENTS
     
    ·                    As required by C.R.S. 29-1-103(3)(d), the 2009 budget includes a schedule for lease-purchase agreements.  Platte Canyon does not have any lease-purchase agreements requiring expenditure of funds in 2009.
     
     
    2008 - 2009 BUDGET COMPARISON
     
    ·                    Exhibit A, pages 11-15, offers a comparison between 2008 and 2009 budgeted revenues and expenditures.
     
     
    PERSONNEL SUMMARY
     
    ·                    The personnel summary, Exhibit B, compares the number of full time and seasonal employment positions authorized in 2008 to the positions proposed for 2009.
     
     
    TEN YEAR FINANCIAL PLAN
     
    ·                    The Ten Year Financial Plan identifies a reserve fund balance of $8,384,674 at year end 2008. The fund balance is projected to increase $137,860 (including emergency reserve expenditures) to $8,522,535 in 2009. Over the ten year planning period, the reserve fund balance is projected to increase to $15,118,787. The Board reviews the fund balance every year to determine the adequacy of the reserves to fund District administrative, operations, maintenance, and capital project expenditures.
     
    ·                    The average yield on District investments is assumed to be 2.5 percent in 2009 and increase by one half (0.5) percent per year to a maximum 5.4 percent.  Interest revenue is projected to produce approximately 15.9 percent of total District revenue over the ten year planning period.
     
    ·                    Income from intergovernmental operating agreements with Southwest Metropolitan, Bow Mar, Columbine, and Lochmoor Water and Sanitation Districts and Valley Sanitation District is expected to produce approximately one third of all future District revenue. Intergovernmental agreement revenue is assumed to grow at a rate of 3.0 percent in 2010 and 3.4 percent per year in 2011 through 2018.
     
    ·                    Operating expenses are projected to increase 3.0 percent in 2010 and to 3.4 percent per year thereafter. 
     
    ·                    Capital expenditures are projected to be $4,319,168 between 2009 and 2018. These expenses are derived from the District’s Capital Improvement Plan for 2009-2018.