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  1. 1/15/2010 PC 2010 BUDGET APPROVED
  2. The Platte Canyon Board of Directors has adopted a 2010 budget calling for expenditure of $2,379,496; 2.3 percent less than budgeted in 2009.  the Board also certified a property tax mill levy of 7.104 mills for general operations purposes and 0.020 mills to recover revenue from abatements and refunds made by Jefferson and Arapahoe Counties in tax year 2008.  The total mill levy to be assessed upon all property located within the Platte Canyon District is 7.124 mills or $7.124 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:
     
     
    SUMMARY
     
    The 2010 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 2010 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 2010 are described in greater detail in a separate document titled 2010 Maintenance Goals.
     
    Total revenue from all sources is projected to be $2,477,812 in 2010. Total expenditures are budgeted at $2,379,496; 2.3 percent less than budgeted in 2009. General fund expenditures are budgeted at $1,816,124; 1.8 percent more than 2009 budgeted expenses amounting to $1,783,329. Capital expenses for 2010 are budgeted at $563,372; 13.5 percent less than budgeted in 2009.
     
    Beginning funds available in 2010 are estimated to be $8,963,465. The reserve fund balance is projected to increase $98,316 to $9,061,781 at year end 2010.
     
     
    REVENUE
     
    ·                    Total Revenue in 2010 is projected to be $2,477,812, 3.3 percent less than 2009 budgeted revenue.
     
    ·                    The largest single source of revenue is proposed to be tax revenue amounting to $1,388,463, 56.0 percent of total District revenue. A breakdown of assessed valuations and property tax revenue for each county is shown on pages ten and eleven of the budget.
     
    ·                    System development fee revenue is projected to be $0. 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 2010.
     
    ·                    Service charge revenue is anticipated to decrease $9,280 from estimated 2009 revenue of $14,860 due to an expected decrease in revenue received for plan reviews and construction inspections.
     
    ·                    Contract maintenance revenue is projected to be $901,000 in 2010, $14,150 more than estimated 2009 revenue.
     
    ·                    Investment income is projected to decrease $11,977 from estimated 2009 revenue of $191,246.  Investment income amounting to $179,269 is budgeted for 2010. The average yield on District investments in 2010 is projected to be 2.0 percent.
     
     
    EXPENSES
     
    ·                    Total expenses for 2010 are budgeted at $2,379,496; $1,816,124 for operations and $563,372 for capital expenditures.
     
    ·                    Water and sanitary sewer operating and maintenance expenses for 2010 are budgeted at $163,925; $92,790 more than estimated 2009 expenses of $71,135 and $10,000 less than $173,925 budgeted in 2009. Water and sewer remedial repairs are budgeted at $5,000 less than the 2009 budget.  Sewer general operations and maintenance are budgeted at $17,500, $10,000 more than the 2009 budget.  This increase is attributed to the purchase of root treatment chemical.
     
    ·                    Personnel costs, budgeted at $1,248,581 for 2010 represent 68.4 percent of total operating expenditures.  The proposed budget for personnel costs is 4.0 percent more than the $1,200,215 budgeted in 2009. Personnel health benefit expenditures are budgeted at $203,075, 1.0 percent more than $201,000 budgeted in 2009.
     
    ·                    The budget for administrative expenses for 2010 is $103,650, 4.3 percent more than $99,350 budgeted in 2009.
     
    ·                    Professional and consulting fees for 2010 are budgeted at $121,000, $8,500 or 6.6 percent less than $129,500 budgeted in 2009. Participation in the Littleton Rate Coalition has been budgeted at $15,000.  Participation in the Technical Advisory Committee is budgeted at $10,500.
     
    ·                    Insurance costs, estimated to be $34,500 in 2009, are projected to increase 11.3 percent to $38,400 in 2010.
     
    ·                    Capital expenditures for 2010 are budgeted at $563,372. The capital expense budget includes a $54,135 contingency expense line item which amounts to 15 percent of the projected water and sewer capital expenses.  In addition, $74,334 is budgeted for an emergency reserve required by the TABOR Amendment. The capital expense budget is 13.5 percent less than $651,226 budgeted in 2009.
     
    ·                    Water facility capital expenses are budgeted at $179,601 in 2010, 11.1 percent less than $202,015 budgeted in 2009. Two capital water projects are planned for construction in 2010.  A detailed description of these projects is included in the District’s Capital Improvement Plan for 2010-2019.
     
    ·                    The sewer system capital project budget is $181,301, 262.6 percent more than $50,000 budgeted in 2009. There is $50,000 budgeted for 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. One sewer main replacement is planned for construction in 2010.  A detailed description of this project is included in the District’s Capital Improvement Plan for 2010-2019. 
     
    ·                    Vehicle purchases are budgeted at $28,000 in 2010 compared with $203,000 budgeted in 2009. Vehicle and equipment purchases are listed in the District’s Capital Improvement Plan for 2010-2019.
     
    ·                    Maintenance capital equipment is budgeted at $10,000, 80.6 percent less than $51,500 budgeted in 2009.
     
    ·                    Total expenditures for 2010 ($2,379,496) are projected to be less than projected 2010 revenue ($2,477,812) resulting in a yearend surplus of $98,316.
     
     
    PROPERTY TAXES
     
    ·                    The general operations mill levy for Platte Canyon Water and Sanitation District in 2010 (tax year 2009) is proposed to remain the same as the levy certified in tax years 2005 through 2009; 7.104 mills.  A mill levy of 0.020 is proposed for recovery of abatements and refunds made by Jefferson and Arapahoe Counties in tax year 2008.  The total mill levy proposed for certification is 7.124 as compared with a mill levy of 7.136 assessed in tax year 2008.
     
    ·                    Assessed values decreased this year to $182,182,350 from $183,828,700 assessed in 2009 as a result of the reassessment of property.  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 2010 is $1,297,867, $1,009,800 from Jefferson County and $288,067 from Arapahoe County.
     
     
    LEASE - PURCHASE AGREEMENTS
     
    ·                    As required by C.R.S. 29-1-103(3)(d), the 2010 budget includes a schedule for lease-purchase agreements.  Platte Canyon does not have any lease-purchase agreements requiring expenditure of funds in 2010.
     
     
    PERSONNEL SUMMARY
     
    ·                    The personnel summary, Exhibit B, compares the number of full time and seasonal employment positions authorized in 2009 to the positions proposed for 2010.  No increase in the number of employees nor personnel hours is proposed for 2010.
     
     
    SUBDISTRICT NO. 1
     
    ·                    The 2010 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 2010 is $30,577; $30,522 from property tax revenue and $55 from investment income.  A mill levy of 32.772 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 2010 are budgeted at $28,983.
     
    ·                    Expenditures budgeted in 2010 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 $458.
     
     
    SUBDISTRICT NO. 2
     
    ·                    The 2010 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 2010 is $35,768; $35,760 from property tax revenue and $8 from investment income.  A mill levy of 39.256 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.
     
    ·                    Expenditures budgeted in 2010 include principal and interest loan payments to the Colorado Water Resources and Power Development Authority in the amount of $33,421, and treasurer fees in the amount of $501.
     
     
    TEN YEAR FINANCIAL PLAN
     
    ·                    The Ten Year Financial Plan identifies a reserve fund balance of $8,963,466 at year end 2009. The fund balance is projected to increase $98,316 (including emergency reserve expenditures) to $9,061,782 in 2010. Over the ten year planning period, the reserve fund balance is projected to increase to $15,640,252. 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 2.0 percent in 2010 and increase by one half (0.5) percent per year to a maximum 5.4 percent.  Interest revenue is projected to produce approximately 15.5 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 2011 and 3.4 percent per year in 2012 through 2019.
     
    ·                    Operating expenses are projected to increase 3.0 percent in 2011 and to 3.4 percent per year thereafter. 
     
    ·                    Capital expenditures are projected to be $3,607,320 between 2010 and 2019. These expenses are derived from the District’s Capital Improvement Plan for 2010-2019.  
     
     
    You can view additional highlights and details pertaining to Platte Canyon’s 2010 Budget here.