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  1. 12/2/2016 BOARD OF DIRECTORS ADOPTS 2017 BUDGET
  2. The 2017 budget for Platte Canyon Water and Sanitation District proposes general fund expenditures of $2,327,644 and capital expenditures of $1,951,734. Total expenses amounting to $4,279,378 will exceed projected 2017 revenue of $2,949,455 by $1,329,923. The deficit will be funded by a transfer from the District’s reserve fund and will not result in higher taxes or customer charges.

     

    The District will assess a property tax mill levy of 7.126 mills which includes 0.022 mills for recovery of County issued refunds and abatements. The basic mill levy of 7.104 mills has not risen since 2005. Property and specific ownership tax revenue will remain the largest source of District funds at $1,590,643. This is 54 percent of total revenue.

     

    Another significant source of revenue for the District is derived from administrative and facility maintenance services provided to adjacent water and sewer utilities including Southwest Metropolitan, Bow Mar, Columbine, and Lochmoor Water and Sanitation Districts and Valley Sanitation District. Revenue produced from these services is estimated to be $1,230,472.

     

    Water and sanitary sewer tap permit revenue is a declining source of revenue for the District due to the fact that there is little undeveloped property within the District boundaries. Revenue from tap permit sales is expected to be $19,000.

     

    Total revenue projected to be received from all sources in 2017 is $2,949,455.

     

    Platte Canyon is largely a service-oriented organization since the majority of administration and facility maintenance and operations are performed by the District’s 13 full time employees. Thus, 70 percent of all general fund expenditures are personnel costs comprised of employee wages and benefits. These costs are expected to be $1,632,881 in 2017, approximately 1.2% more than the amount budgeted in 2016.

     

     

    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 is $157,000, $7,000 less than budgeted in 2016.

     

    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. The 2017 budget for these items is $140,500, $5,000 more than the amount budgeted in 2016.

     

    Total general fund expenses budgeted for 2017 are $2,327,644, $82,424 less than the amount allocated in 2016.

     

    The budget for capital expenses in 2017 is $1,951,734; $603,847 more than budgeted in 2016 and an annual average of $3.1 spent between 2014 and 2016. The $1.9 million capital budget is the largest single year capital budget ever proposed by Platte Canyon.

     

    Four capital water projects are budgeted for 2017. The largest capital project expense consists of the rehabilitating the District’s 40-year old Scott J. Morse Pump Station equipment and piping at an estimated cost of $679,013. Additional water related capital projects include the replacement of 6-inch cast iron pipes located in the Columbine Hills and Bow Mar South Subdivisions at a combined cost of $507,150. The final water capital project scheduled for 2017 calls for replacement of a pressure reducing valve and vault in the Columbine West Subdivision at a cost of $12,000.

     

    In 2015 an effort was launched to rehabilitate all small diameter concrete sewer pipe which was experiencing moderate to severe corrosion. The project was being phased over a five year period; however in 2017 the three remaining phases are being consolidated into one project to obtain economies of scale and better unit pricing. The project anticipates cured in place lining of 8770 feet of 8-inch and 10-inch concrete pipe at an estimated cost of $369,837. A detailed explanation of all projects is included in the District’s Capital Master Plan for 2017-2026 (please click here to view the Capital Master Plan for 2017-2026).

     

    The 2017 District budget includes financial projections for the 10-year period between 2017 and 2026. Deficits are expected in 2017 and 2018 due to large capital expenditures, but upon completion of those projects the District anticipates annual surpluses from 2019 through 2026. Throughout the 10-year period the District reserve fund will remain at a level believed to be adequate to ensure the continuation of high-quality water distribution and wastewater collection services with no increases in property taxes or customer charges.

     

    The entire 2017 Budget is available by clicking here.