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  1. 1/5/2007 Board Adopts 2007 Budget
  2. The budget for 2007 was adopted by the Platte Canyon Board of Directors on December 1, 2006. The budget calls for expenditure of $3,097,687, 2.0 percent more than budgeted in 2006. General fund expenditures are expected to be $1,725,192 while capital expenditures are budgeted at $1,372,495. Total revenue expected in 2007 is $2,358,426. The $739,261 difference between projected revenue and expenditures will be funded from the District’s capital reserve fund.

    Highlights of the 2007 budget are listed below. The entire budget can be found by clicking here.

    REVENUE

    • Total Revenue in 2007 is projected to be $2,358,426, 0.9 percent less than 2006 budget.

    • The largest single source of revenue is proposed to be property tax revenue amounting to $1,305,117, 55.3 percent of total District revenue. A breakdown of assessed valuations and property tax revenue for each county is shown on page seven of the budget.

    • System development fee revenue is projected to be $70,200; 83.7 percent less than estimated 2006 system development fee revenue. The decrease is attributed to a projected reduction in tap permit sales in the Vintage Reserve Subdivision. Home sales exceeded expectations in 2006 but are anticipated to slow during 2007.

    • Service charge revenue is anticipated to decrease $2,325 from estimated 2006 revenue of $11,405 due to an expected decrease in revenue received for plan reviews and construction inspections.

    • Contract maintenance revenue is projected to be $650,000 in 2007, $25,175 more than estimated 2006 revenue.

    • Investment income is projected to increase $12,629 from estimated 2006 revenue of $305,000. $317,629 is budgeted for 2007. The average yield on District investments in 2007 is projected to be 4.25 percent.


    EXPENSES

    • Total expenses for 2007 are budgeted at $3,097,687; $1,725,192 for operations and $1,372,495 for capital expenditures.

    • Water and sanitary sewer operating and maintenance expenses for 2007 are budgeted at $271,700; $81,700 more than estimated 2006 expenses of $190,000 and $63,150 more than $208,550 budgeted in 2006. The budget for remedial water maintenance has been increased from $25,000 budgeted in 2006 to $70,000 in 2007 as a result of an increase in the number of repair and rehabilitation projects scheduled for 2007. Sewer remedial repairs are proposed to remain the same in 2007 at $10,000.

    • Personnel costs, budgeted at $1,041,251 for 2007 represent 60.4 percent of total operating expenditures. The personnel cost budget is 3.9 percent more than the $1,002,195 budgeted in 2006.

    • Personnel health benefit expenditures are budgeted at $163,800, 8.8 percent more than $150,500 budgeted in 2006.

    • The budget for administrative expenses for 2007 is $91,625, 14.5 percent less than $107,135 budgeted in 2006.

    • Professional and consulting fees for 2007 are budgeted at $168,000, $80,800 or 92.7 percent more than $87,200 budgeted in 2006. The increase is attributed to software management. The entire increase is for professional services to convert the District’s computer maintenance management system (CMMS), Hansen, from version 7 to version 8. Participation in the Distributors Rates and Fees Technical Advisory Committee has been budgeted at $10,000. The committee is expected to establish a participation fee of $1.75 per account, the same unit costs assessed in 2005 and 2006.

    • Insurance costs, estimated to be $29,750 in 2006, are projected to increase 16.0 percent to $34,500 as a result of hardening of some insurance markets and 2006 insurance claims.

    • Capital expenditures for 2007 are budgeted at $1,372,495. The capital expense budget includes a $177,874 contingency expense line item which amounts to 20 percent of the projected water and sewer capital expenses. In addition, $70,753 is budget for an emergency reserve as required by the TABOR Amendment. The capital expense budget is 7.9 percent less than $1,490,362 budgeted in 2006.

    • Water facility capital expenses are budgeted at $244,258 in 2007, 46.1 percent less than $453,100 budgeted in 2006. Two capital water projects are planned for construction in 2007. A detailed description of these projects is included in the District’s Capital Improvement Plan for 2007-2016.

    • Two new sewer system capital projects and one sewer capital project continued from 2006 have been budgeted for 2007 at a cost of $645,111. A detailed description of the projects is included in the District’s Capital Improvement Plan for 2007-2016.

    • Vehicle purchases are budgeted at $107,500 in 2007 compared with $214,500 budgeted in 2006. Vehicle and equipment purchases are listed in the District’s Capital Improvement Plan for 2007-2016.

    • Maintenance capital equipment is budgeted at $85,000, $40,000 of which is budgeted for computer equipment needed for implementation of CMMS mobility.

    • Total expenditures for 2007 ($3,097,687) are projected to exceed projected revenue ($2,358,426) by $739,261. The deficit will be funded through a reduction in the District’s reserve funds.