2019 BUDGET MESSAGE JANUARY 1, 2019 THROUGH DECEMBER 31, 2019

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1 2019 Budget

2 2019 BUDGET MESSAGE JANUARY 1, 2019 THROUGH DECEMBER 31, 2019 INTRODUCTION This budget reflects the estimated revenues and cash requirements for the coming year and the District s continued commitment to cost containment while providing exceptional services to the entire community now and in the future, both economically and without interruption. THE DISTRICT Local Government. Parker Water and Sanitation District (PWSD) is a quasi-municipal corporation and political subdivision of the state, established in 1962 under the laws of the State of Colorado Special District Act as a Title 32 Special District. The District was organized for the purpose of providing water and wastewater utilities to the customers of the District. Location. The District Office is located at E. Woodman Drive, Parker, CO Official business hours are from 7:30 a.m. to 4:30 p.m., Monday through Friday, except for holidays. The District office phone number is Please visit the District s website at for more information about the District. 1 Service Area. The District s service area is the total area the District may legally serve without further inclusions or agreements. The District has over 21,000 acres within its current boundary area and nearly 28,000 acres (43.5 square miles) within its current service area. The District s boundary area represents the extent of its inclusions, while the service area reflects additional service agreements for areas outside its boundary. PWSD s service area includes portions of the Town of Parker, City of Lone Tree, City of Castle Pines, and portions of Douglas County. The District serves a population of approximately 53,000.

3 Services of the District. The District owns and maintains its water distribution system and wastewater collection system. At this time, the District treats both raw water from the deep Denver Basin aquifers and surface water from Rueter-Hess Reservoir. PWSD provides an annual average of 7 million gallons of water a day (MGD) with demands ranging from as low as 3 MGD in the winter to over 20 MGD in the summer. Water service is provided to existing developed areas though a distribution system that includes storage tanks, booster stations and transmission mains. The District maintains approximately 307 miles of water pipelines. Wastewater generated within the District is collected by a network of sanitary sewers, outfalls, and interceptors to transport the wastewater to one of two District water reclamation facilities. The District maintains almost 228 miles of wastewater pipelines. Board of Directors. A five-member Board of Directors governs the District. The Directors set the policies for operations of water and wastewater systems and the general government. The Directors are elected to fouryear terms. Regular meetings of the Board of Directors are held on the second and fourth Thursday of each month. In accordance with the State Budget Law, the District's Board of Directors holds a public hearing in the fall each year to approve the budget and appropriate the funds for the ensuing year. An appropriation is the legal spending limit authorizing the expenditure set forth in the budget by the governing board. The budget is merely a fiscal plan for the coming year, while the appropriation is the legal authority to spend that money. Financial. While the District s records are maintained on the accrual basis of accounting, the annual budget is prepared using the modified accrual basis of accounting. The District is not financially accountable for any other organization, nor is the District a component unit of any other primary governmental entity. Operating Revenues and Expenses. Operating revenues and expenses generally result from providing water and wastewater services to our customers. Total projected operating revenues for 2019 are $35,417,390 and consist mainly of user fees to customers for services provided. PWSD 2019 Operating Revenues - Total $35,417,390 3% 7% 4% 4% User Fees Operating Taxes Build America Subsidy Interest/Investment Income 82% Other Income 2

4 Total projected operating expenses for 2019 are $32,346,881 consisting mainly of debt service, professional services, salaries and benefits, utilities, treatment chemicals and transfer rate funded capital. PWSD receives an additional supply of water through the Water Infrastructure and Supply Efficiency (WISE) project. This is a collaborative project between PWSD, Denver Water, Aurora Water and several other south metro communities to bring a renewable supply of water to our area and reduce our dependency on ground water. The District s commitment is to accept, on average, 1,200 AF of water per year beginning in 2021 which represents approximately 17% of the District s total current annual demands. In 2019, the District will be considering and evaluating an additional purchase commitment of 500 AF through WISE. PWSD 2019 Operating Expenses - Total $32,346,881 12% Employee Expenses 6% 11% 4% 32% Professional Services Utilities Chemicals Materials and Supplies Debt Service 11% 24% Transfer - Rate Funded Capital Capital Revenues. Total projected capital revenues for 2019 are $31,569,000 consisting mainly of development fees, the general obligation mill levy and loan proceeds from Colorado Water Conservation Board (CWCB). PWSD 2019 Capital Revenues - Total $31,569,000 13% Development Fees 13% 8% 50% Mill Levy - Reservoir Inclusion Fees & Other Income Transfer - Rate Funded Capital Loan/Bond Proceeds 16% 3

5 Transfers. The 2019 budget includes a $4 million transfer from operations to capital for replacement equipment, major rehabilitation projects and other replacement assets. Capital Expenses. The projected 2019 capital expenditures are $74,100,750. The capital expense budget includes funding for construction of major improvements including the expansion of the North Water Reclamation Facility (NWRF), the purchase of water rights, additional water infrastructure and a pump station necessary to accept renewable water outlined in the WISE agreement and funding for the design and construction of a well facility. Additional funding for these projects will be from the District s cash reserves. PWSD 2019 Capital Expenses - Total $74,100,750 17% Project Construction 1% Water Rights 13% Equipment 53% Land Improvements, Vehicles, Software & Other Related Equipment 16% Debt Service Rates/Fees. PWSD completed a comprehensive cost of service study in Two major inputs to that study were the PWSD Master Plan and the Long Term Water Plan, completed in 2014/2015, which outlines the major infrastructure required to support current and future growth through build-out. Construction costs for the Long Term Water Plan were updated in The cost of service study was updated in 2018 to determine proposed increases to the water and sewer rates and system development fees for The PWSD Master Plan, as well as the cost of service study, are both currently budgeted to be reviewed/updated in PWSD s Board of Directors approved a water system development fee increase of $110 per SFE, a water resource system development fee increase of $1,320 per SFE and a sewer system development fee increase of $1,300 per SFE to fund future water and wastewater capital projects outlined in the District s 10 year capital plan and longterm master plan. The system development fee increases also reflect increases in the construction cost index within the Denver metropolitan area. 4

6 There will be no increase to the water base charge, for any customer class, and no increase to the first tier usage rate for Residential and Multi-Family accounts. PWSD s Board of Directors approved a water usage rate increase of 3.5% for all other tiers, resulting in a water only portion increase of approximately 1.05% for the average residential customer, effective January 1, PWSD s Board of Directors approved a 2.79% sewer rate increase, both base and usage charges, effective January 1, 2019 for all residential, multi-family and commercial accounts. The billing methodology change passed by the Board in 2017 for Winter Quarter Average (WQA), which calculates customer s wastewater usage based on actual water usage or WQA, whichever is less, remains in effect. 5

7 PWSD s Board of Directors approved increases and decreases to several miscellaneous fees, which are established to recover the direct cost of providing the service, are as follows: Suspension Fee - $92 Owner Transfer Fee - $20 Owner Transfer Fee (Final Read Not Ordered in Advance) - $40 Returned Check Fee - $28 Engineering Plan Review (more than 2 reviews) - per linear foot - $1.50 Engineering Tenant Finish Review - $175 Engineering Variance Request - $500 Dolly Meter including Backflow and End Point Deposit - $2,825 Water Surcharge (per SFE) - $2,000 Meter Set Fees The price of all the meters have changed slightly due to price changes based on the size of the individual meters Water & Sewer Service Line Inspections (per trip) - $70 Service Line Re-Inspection Fee (per trip) - $80 A complete list of the District Fee and Rate Schedule, effective January 1, 2019, has been posted to the website. Property Tax Levy. The District Board of Directors approved the general operating levy for 2019, as permitted under TABOR. This levy, temporarily reduced from the mills to mills in 2019, is to help fund general purpose sewer operations. The Board also approved the general obligation levy for 2019, set at mills in 2019, to pay a portion of the debt associated with construction of Rueter-Hess Reservoir. In addition to the levy, the debt for the reservoir construction is partially funded utilizing a portion of tap fees collected on new development. Inquiries regarding the 2019 Budget. Please direct all inquiries regarding the Parker Water and Sanitation District 2019 budget to: Ron R. Redd, PE, District Manager or Steven C. Hellman, CPA, Chief Financial Officer E. Woodman Drive Parker, CO Phone: For more information about the District, including the 2019 budget, please visit our website at 6

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9 2019 Budget Operating - District Wide

10 Parker Water & Sanitation District District-Wide Operating 2017 Actual 2018 Budget 2018 Forecast 2019 Budget Revenue 3001 User Fees 27,382,215 27,803,000 28,366,250 29,170, Meter Installation 292, , , , Inspection Fees 77,521 48,000 46,880 48, Suspension Fees 45,920 46,000 44,900 45, Final Reads Income 62,880 60,000 64,660 60, WISE Water Capital Recovery 122, , , WISE Operational Agreement Reimbursements 275, , , Meter Reset and Reinspect fees 24, Farm Income - Leases 365, , , , Farm Income - NOC 9,612 8,600 4, Current Operating Taxes - Sewer 915, ,000 1,057,820 1,029, Specific Ownership Taxes (SOT) 576, , , , Town of Parker Admin Fees - Other Income 55,908 52,000 52,000 52, PILT 70, ,540 74,000 77, Pretreatment Surcharges 13,648 21,000 13, Build American Bonds Subsidy 959, , , , IGA Agreements for Water Diversion 4,500 4,000 4, Other Income 78, , , , Investment Income 443, ,000 1,960,030 2,300, Interest Income 2,700 SUB10 Total Revenue 31,375,305 31,495,860 34,263,140 35,417,390 Salaries and Benefits 4001 Salaries & Wages 5,000,828 5,667,656 5,789,790 6,654, Overtime 231, , , Sick Time and Vacation Expense (8,025) 4401 Employee Insurance 1,522,957 1,674,130 1,619,640 2,217, Retirement Plans 401A 579, , , , District Portion 457 Plan 232, , , , Employer Taxes 189, , , , Taxable Benefit - Clothing Allowance 3,420 12,625 11,950 15, Taxable Benefit - Employee Wellness 6,625 9,000 9,000 9, Taxable Benefit - Vehicle Allowance 25,575 27,600 27,150 27, Non-Taxable Benefit - Cell Phone Allowance 43,870 44,400 45,980 52, Non-Taxable Benefit - Mileage Reimbursement Non-Taxable Benefit - Tuition Reimbursement 13,474 26,300 25,160 32,720 SUB20 Salaries and Benefits 7,841,629 8,664,502 8,545,041 10,393,731 Services 5001 Legal Services, General 176, , , , Legal Services, Specialized 179, , , , Legal Services, Water 89,043 95,000 95, , Banking & Financial Services 71,224 73,900 65, , Employee Communications/HR Services 10,612 18,000 17,500 32,000

11 Parker Water & Sanitation District District-Wide Operating 2017 Actual 2018 Budget 2018 Forecast 2019 Budget 5006 Engineering - General (Studies) 220, , , , Water Rights Engineering 239, , , , Operations Consulting Services 80, , , , IT Consulting Services 11, Other Consulting Services NOC , Legislative Consulting 13,685 12,000 12,000 12, Electricity 3,397,024 3,600,000 3,295,000 3,300, Natural Gas 104, , , , Stormwater 12,827 13,200 14,000 14, Communication Access 30,962 37,600 38,800 37, Advertisement Services 2,391 1,000 1, Billing Outsource 109, , , , Biosolids Handling 280, , , , Facilities Maintenance & Repair 140, , , , Collection System Infiltration Inflow 140, , , Courier Services & Postage 4,250 8,000 9,500 8, Document Shredding Services 1,078 1,000 1,000 1, Electrical Maintenance & Repair 27,972 60,000 51,750 50, Equipment Maintenance & Repair 360, , , , General Contract Labor 284, , , , Hydrant Maintenance & Repair 47,771 38,500 13,000 58, Industrial Pretreatment 3, , IT Annual Maintenance & Support 244, , , , Janitorial Services 47,726 59,150 59,000 60, Landscaping Maintenance 55,873 56,400 56,000 60, Noxious Weed Control 40,046 47,390 45,000 45, Outside Laboratory Services 79, ,200 65, , Property & Liability Insurance 190, , , , Security 31,485 22,200 30,000 40, Collection System Maintenance & Repair 400, , , , Surveying & Monitoring 44,431 90,000 72,000 72, Third Party Computer Support 28, , , , Training & Travel 164, , , , Trash Removal 13,870 15,700 20,000 20, Vehicle Repair 58,451 55,000 55,000 75, Water Line Maintenance & Repair 394, , , , WISE Operations 846, , ,430 1,520, Other Support Services NOC 3, Printing & Imaging 5,443 20,000 20,000 22, Public Relations 38,334 20,000 20,000 20, Conservation Education 7,938 35,000 35,000 50,500 SUB30 Services 8,593,732 9,586,200 9,371,458 11,041,120 Materials 6001 Board of Directors Election 80, Board of Directors Expenses 2,228 5,000 3,000 7,500

12 Parker Water & Sanitation District District-Wide Operating 2017 Actual 2018 Budget 2018 Forecast 2019 Budget 6003 Community Outreach 18,000 20,000 23,000 23, Employee Recognition 17,551 13,300 13,300 19, Meals 9,155 7,900 8,900 8, Office Supplies & Small Office Equipment 22,014 48,900 40,800 55, Safety 22,585 45,000 35,000 54, Subscriptions, Dues & Memberships 14,746 12,950 8,950 7, Industry Assoc Dues & Fees 69,121 82,130 82,000 89, Other Administrative & General Supplies NOC 1, Snack Store 1, Recording Fees 3, Automotive Supplies 143 5, Electrical Supplies 51,777 72,500 80,500 75, Fuel 65,376 53,000 66,500 70, Laboratory Supplies 164, , , , Landscaping Supplies 398 5,500 1, Materials 95, , , , Meters 250, , , , Operating Supplies, General 51,077 46,190 45,360 46, Safety/Personal Protective Equipment 10,806 19,500 19,500 1, Small Equipment & Tools 27,492 39,800 35,000 46, Other Operating Materials & Supplies NOC 5, Janitorial Supplies 6,838 7,200 8, Equipment Rental 32, Ferric Chloride 218, , , , Sulfuric Acid ,000 12,000 12, Purate 19,152 20,000 40,000 41, Sodium Hydroxide 225, , , , Potassium Permanganate 81, , , , Polymer 94, , , , Powdered Activated Carbon 203, , , , Sodium Bisulfate 38,246 31,500 33,400 34, Citric Acid 4,313 8,500 13,000 13, Sodium Hypochlorite 74, , , , Chlorine Gas 55,076 34,000 9,000 8, Seaquest 55,850 57,750 57,000 58, Nitrogen Gas 2,434 2,900 1,000 2, Aluminum Sulfate 143, , , , Other Chemicals NOC 5,205 29, , , Micro Sand 15,787 12,500 34,000 35, Communications Equipment 5,912 3,500 8,000 13, SCADA System 53,951 68,950 71,000 62, Computers & Related Hardware 51,159 69,900 82,500 66, Computer Software & Licensing 52,533 42,800 66,226 62, Other IT Materials & Supplies NOC Farm Maintenance & Repair 69,199 65,000 65,000 65, Farm - PILT 54,194 56,000 56,400 56, Farm Professional Services 20,000

13 Parker Water & Sanitation District District-Wide Operating 2017 Actual 2018 Budget 2018 Forecast 2019 Budget 6806 Farm Water Contract Pay & Assessment 77,792 85,000 85,000 85,000 SUB40 Materials 2,510,144 2,958,820 3,137,111 3,313,710 Debt and Other Expenses CWRPDA Water Loan Interest (1,458,622) CWRPDA Water Loan Interest 95,652 62,300 62,300 19, CWRPDA Wastewater Loan Interest 26,716 22,500 22,500 17, CWRPDA Wastewater Loan Interest 104, , ,500 99, CWRPDA Water Loan Interest 1,177,492 1,176,400 1,176,400 1,176, Revenue W/WW Bond Interest 261, , , , Miscellaneous Expenses NOC 6, CWCB Loan A Interest 45,086 43,200 43,200 41, CWCB Loan B Interest 45,400 67,400 66, CWCB Loan D Interest 5,600 14,900 9, Revenue Bond Interest 181, , , CWRPDA Water Principal 802, , , CWRPDA Wastewater Principal 108, , , CWRPDA Wastewater Principal 111, , , Revenue W/WW Bond Principal 230, , , CWCB Loan A Principal 73,200 73,200 75, CWCB Loan D Principal 91, Revenue Bond Principal 132, Rate Funded Capital Expenses 4,000,000 4,000,000 4,000,000 4,000,000 SUB50 Debt and Other Expenses 4,258,914 7,423,200 7,351,483 7,598,320 EXP Total Expenses 23,204,420 28,632,722 28,405,093 32,346,881

14 2019 Budget Capital District Wide

15 Parker Water & Sanitation District District-Wide Capital 2017 Actual 2018 Budget 2018 Forecast 2019 Budget Revenue 3054 WISE Reimbursable Expenses 21,750,069 3,696,000 7,596, Rueter Hess Mill Levy Taxes 4,168,868 4,914,000 4,914,000 5,216, Inclusion Fees 573, , Engineering Construction Fees 212, , , , Sale of Fixed Assets (330,348) 40,000 20,000 2,010, Other Income 68,807 20, ,250 50, Investment Income 400, ,000 80, , Interest Income 145, Bank Interest Income - CSBT 133, Unrealized Gain/Loss on Securities (128,321) 3601 Water Resource Toll 1,290, , , , Tap Fees 10,048,700 7,003,000 7,622,610 8,089, Development Fees 9,540,890 6,392,000 7,311,230 7,364, Developers Contributions 4,168, Contributed Water Rights 337, Bond Proceeds 44,400,000 42,250,000 4,000, Rate Funded Capital Transfer from Operating 4,000,000 4,000,000 4,000,000 4,000,000 SUB10 Total Revenue 55,661,646 71,300,000 76,417,005 31,569,000 Debt and Capital Expenses Debt and Other Expenses CWRPDA Water Loan Interest 177, , ,600 36, CWRPDA Wastewater Loan Interest 46,983 39,400 39,400 30, CWRPDA Wastewater Loan Interest 182, , , , CWRPDA Water Loan Interest 1,766,238 1,764,600 1,764,600 1,764, Revenue Bond Interest 392, , , , RH Refunding Bond Interest 3,331,691 3,670,800 3,670,800 3,594, CWCB Loan A Interest 67,628 64,700 64,700 61, CWCB Loan B Interest 68, ,100 99, CWCB Loan D Interest 8,400 22,300 13, Revenue Bond Interest 1,287,000 1,310,700 1,441, CWRPDA Water Principal 1,490,200 1,490,200 1,302, CWRPDA Wastewater Principal 191, , , CWRPDA Wastewater Principal 195, , , Revenue W/WW Bond Principal 346, , , RH Refunding Bond Principal 1,910,000 1,910,000 1,980, CWCB Loan A Water Principal 109, , , CWCB Loan C Water Principal 137, Revenue Bond Principal 728,000 SUB50 Debt and Other Expenses 5,966,086 12,657,900 12,000,500 12,314,300

16 Parker Water & Sanitation District District-Wide Capital 2017 Actual 2018 Budget 2018 Forecast 2019 Budget Capital Expenses 7500 Prior and Current Year 45,479,691 28,985, Project Construction 22,016,560 39,487, Land Improvements 185, , Water Rights 12,000, Equipment 4,632,500 9,534, Software/Applications 300, Vehicles & Related Equipment 217, , Other Capital Expenses NOC 50,000 SUB60 Capital Expenses 45,479,691 27,351,060 28,985,161 61,786,450 EXP Total Expenses 51,445,777 40,008,960 40,985,661 74,100,750 TOT Net Funds 4,215,869 31,291,040 35,431,344(42,531,750)

17 2019 Budget Capital District Wide Project Descriptions

18 Parker Water & Sanitation District 2019 Capital Budget By Project Operations Capital Projects Amount Project Description OPS001 Liquid Ammonium Sulfate Project 150,000 Liquid Ammonium Sulfate (LAS) Transport and Modification Project; changes at RHWPF and a heavy duty truck with tank mounted to allow for remote site filling OPS003 Tilt Trailer/Landscaping 7,000 Additional trailer needed to move landscape equipment OPS004 Lawn Mower 5,500 60" industrial OPS005 Asphalt and Concrete Repairs, District Wide 175,000 Age related repairs; crack seal and repairs OPS009 Erosion Control, RHRES 100,000 Hardening of ditches OPS011 HACH UV Spectrophotometer, NWRF Lab 10,000 Age related replacement OPS019 Erosion Mitigation, Bradbury WH 285,000 Erosion Mitigation/Road Improvements; paved road to Bradbury WH and Pump Station OPS020 Unidentified Capital Projects 120,000 Capital requested for unanticipated projects/capital purchases OPS028 Voltage Upgrade, CCPS 132,000 Recommended maintenance and upgrade for VFD from manufacturer, 1X every 7-years OPS032 Waste Activated Sludge Pump, NWRF Clarifier 9,000 Age related replacement OPS033 Security Upgrades, District Wide 300,000 Finish SWRF; Clarke Farms WH, Parker Ridge WH, Parker North WH OPS037 Deionized Water Polishing Units, NWRF Lab 20,000 Age related replacement OPS Trucks (7 Repl/7 New) 424,000 New trucks for 7 new employees and 7 replacement vehicles OPS051 Exhaust Fan, NWRF Lab 78,000 Age related replacement OPS052 Laboratory Refrigerators, NWRF Lab 10,000 Age related replacement OPS053 Skidsteer Attachments 8,000 6" auger bit, 82" rock bucket, LT414 5' trencher, 74" tooth bucket OPS055 Laboratory Dishwasher, NWRF Lab 10,000 Age related replacement OPS061 Security System Improvements 25,000 Upgrading software, replacing hardware and cameras OPS066 Hypochlorite Transfer Pumps (8) 100,000 Installation of higher capacity pumps at various well houses OPS071 Rooftop Unit 5401, NWRF Lab 200,000 Age related replacement OPS072 Pump & Motor Project (5) (Including Cleaning/TV) 875,000 Project to rehab existing pumps and motors and store them so that they will be available for immediate use OPS073 Pump & Motor Storage Facility Project 1,000,000 Building to store rehabilitated pumps and motors OPS075 Conveyance Fencing, Bradbury Tank 7,000 Security fencing around new WRCP conveyance tank at Bradbury OPS076 Line Locators (2) 10,000 Electronic locators for pipes OPS078 Pipe Failure Protection Project 80,000 Wellhouse electrical room pipe failure protection project, designed to keep water from entering electrical rooms OPS082 Adenotriphosphate Analyzer, NWRF Lab 7,000 Field instrument used to provide early detection of nitrification issues OPS083 Autosampler for Stormwater Flows, Newlin Gulch 30,000 Watershed management plan sampling station OPS084 Ammonia Analyzer, NWRF Lab 25,000 Reduces exposure to phenol OPS085 Wastewater Sampler, NWRF 8,000 Replacement sampler OPS087 Conduit Addition, NWRF AWT 20,000 Additional conduit to accommodate electrical and communication between one end of building and the other OPS088 Booster Pump Upsize, Parker North 40,000 Provides additional capacity for the wells OPS089 Bac-T Sampling Stations 100,000 Water quality sampling stations throughout District OPS092 Return Activated Sludge Pump Rebuilds, SWRF 32,000 Age related rebuild

19 Parker Water & Sanitation District 2019 Capital Budget By Project OPS094 HVAC Split and Control, NWRF Admin 30,000 Separate control for different zones at the NWRF administration building OPS095 Booster Pump, Bradbury WH 20,000 Spare booster pump OPS097 Decant Pit Pump, RHWPF 10,000 Spare decant pit pump OPS100 Recirculation Pump, SWRF DAFT 10,000 Spare recirculation pump OPS101 Filter Skid Air Dryer System, RHWPF 25,000 Necessary upgrade for RHWPF due to condensation issues OPS102 Dampers Replacement, Regional PS 18,000 Age related replacement OPS104 Rehab Project, SWRF AWT 750,000 Rehab of AWT OPS108 Clearwell Hatch Installation, RHWPF 50,000 Secondary access into the finished water clearwell to allow cleaning, sampling and draining thru pipe OPS109 Pilot System Completion 40,000 Continued refurbishment of pilot system, replacement of parts OPS110 Polymer Room Water Tempering System, RHWPF 50,000 Rehab of water tempering systems OPS111 Effluent Pump, SWRF 500,000 Pump upgrade necessary to move water to Regional Reservoir OPS112 Thickened Waste Activated Sludge Pump, SWRF DAFT 6,000 Spare TWAS pump OPS113 Chemically Enhanced Backwash Vertical Pipe Replacement, 45,000 Replacement of CEB piping RHWPF OPS116 Magnetic Flow Meter, Various Locations 30,000 Complete conversion from turbine to magnetic flow meter OPS117 Variable Frequency Drives, NWRF Digester & AWT 132,000 Variable frequency drives OPS118 Energy Conservation Program 50,000 Funding needed to integrate possible energy savings for the District; LED lighting changes, white roof project, more efficient emergency generator block heaters OPS119 Orhophosphate Online Monitoring, NWRF/SWRF 50,000 Better control of chemical feeds based on instantaneous readings at AWT OPS120 Repair Leaking Air Header, SWRF 50,000 Repair of leaking air pipe (underground) at South Water Reclamation Facility OPS121 Aeration Basin Dissolve Oxygen Probes 10,000 Installation of aeration basin dissolved oxygen probes OPS122 Meter Relocation, RHWPF 125,000 Meter requires relocation OPS123 Distribution System Valve Replacement 50,000 Large valves for distribtuion system OPS124 Sludge Collection, NWRF AWT 175,000 Upgrade for plate settler sludge collection OPS126 Flash Mixer, RHWPF 25,000 Improved mixing performance OPS127 Pressure Sustaining Valve, Bradbury WH 100,000 Valve to maintain back pressure on the pumps at Bradbury WH OPS128 Manholes Project, SWRF 150,000 Phase I manhole installation for discharge from SWRF OPS129 Valve Replacement Program 250,000 Ongoing valve replacements in distribution system OPS130 Fire Hydrant, Rowley Downs 30,000 Completion of Rowley Downs fire hydrant replacement project Total Operations Capital Projects 7,183,500 Engineering Capital Projects Amount Project Description ENG02 Expansion II, NWRF 22,500,000 Design and construction for NWRF expansion ENG04 Cherry Creek Interceptor SWRF to NWRF 500,000 Design of Cherry Creek interceptor from SWRF to NWRF ENG06 Well House Conversions 500,000 The addition of a liquid ammonium sulfate feed system to Stroh WH, Hidden River WH, or Rustic WH for additional peaking capacity ENG07 Hypochlorite Storage, RHWPF 100,000 The addition of hypochlorite storage at the RHWPF ENG10 Diesel Generator, Regional PS 1,250,000 A generator to provide emergency power at Regional PS

20 Parker Water & Sanitation District 2019 Capital Budget By Project ENG11 Pipelines, Phase IV (Regional to CCPS) 200,000 Increase the conveyance capacity from Regional to CCPS ENG12 Erosion Control, Regional Reservoir 50,000 Hardening the shoreline of Regional Reservior to protect against erosion ENG19 WISE DIA Connection Fee 178,200 DIA connection pipeline - WISE ENG20 WISE Smoky Hill/W Pipeline 6,531,000 WISE Smokey Hill/Western pipeline connection & pump station ENG27 Infrastructure Improvements, Logan County 78,750 Improvement to Logan County infrastructure ENG28 Drying Pond, RHWPF 150,000 Construction of 2 new drying ponds ENG40 Denver Basin Well Facility, RHWPF 5,500,000 Design and construction of a new well house ENG42 Space Upgrades ,000 Design and re-model of existing PWSD space for additional and improved work space ENG45 Parallel Distribution Outlet Pipe 20", Regional PS 1,100,000 Design and construction of a parallel waterline leaving Regional PS to eliminate the hydraulic bottleneck ENG46 Conversion Weirs, RHWPF 100,000 Design and construction to modify the RHWPF clearwell with the addition of a weir to eliminate the back flow through the sluice gate ENG49 Meridian Interconnect 100,000 The construction of an interconnection to Meridian in exchange for RidgeGate line easements ENG50 Reconfigure Piping (Regional bypass to CCSP) 200,000 Design and construction to modify piping from Regional WH to pump directly to CCPS ENG51 Parallel Discharge Pipe 24", from RHWPF (Ridgegate side) 300,000 Design and construction to eliminate the hydraulic bottleneck between the RHWPF and RidgeGate development ENG52 Overflow Modifications, Bradbury Tank 150,000 Modifications to redirect Bradbury tank overflow ENG54 Water Rights Acquisition 12,000,000 Purchase of water rights ENG55 WISE Subscripton 500 AF 950,000 Additional 500AF of WISE water to increase water supply portfolio Total Engineering Capital Projects 52,737,950 Enterprise Services Capital Projects Amount Project Description ENT01 Meter Replacement Program, Phase II 700,000 Replacement of District water meters with AMI meters ENT02 Server Hardware Upgrade/Lifecycle 75,000 Lifecycle replacement of District server hardware ENT03 Storage Upgrade/Lifecycle 200,000 Lifecycle replacement of District digital storage array hardware ENT04 Network Infrastructure Upgrade/Lifecycle 75,000 Upgrade/replacement of District network hardware ENT05 SCADA Controls Upgrade/Lifecycle 50,000 Upgrade/replacement of District SCADA controls ENT12 Server Rack Upgrades 15,000 Upgrade/replacement of District server rack ENT13 Work Order 200,000 Upgrade/replacement of District work order computer system ENT14 Field Mobility 50,000 Implementation of field technology for access of District systems ENT37 Fiber, Western Conveyance 500,000 Installation of fiber between Bradbury WH and Regional WH Total Enterprise Services Capital Projects 1,865,000 Total 2019 Capital 61,786,450

21 2019 Budget Projected Cash Balances

22 Projected Cash Balances ACTUAL BUDGET PROJECTED BUDGET REVENUES User Fees 27,382,215 27,803,000 28,366,250 29,170,370 Other Operating Revenue 3,993,090 3,692,860 5,896,890 6,247,020 Capital Reimbursements 21,750,069 3,696,000 7,596,270 Development Fees 20,879,590 13,550,000 15,928,840 15,653,000 Bond/Loan Proceeds 44,400,000 42,250,000 4,000,000 Transfer Rate Funded Capital 4,000,000 4,000,000 4,000,000 4,000,000 Fees and Other Income 9,031,987 5,654,000 6,641,895 7,916,000 Total Revenues 87,036, ,795, ,680,145 66,986,390 EXPENDITURES Employee Expenses 7,841,629 8,664,502 8,545,041 10,393,731 Professional Services 5,092,622 5,886,200 5,976,458 7,641,120 Utilities 3,501,110 3,700,000 3,395,000 3,400,000 Chemicals 1,237,609 1,422,050 1,658,250 1,734,550 Materials and Supplies 1,272,535 1,536,770 1,478,861 1,579,160 Project Appropriations from Prior Year 17,046,198 13,812,530 7,643,866 Capital Expenses 45,479,691 27,351,060 15,172,631 61,786,450 Debt Service and Other Expenses 6,225,000 16,081,100 15,351,983 15,912,620 Transfer Rate Funded Capital 4,000,000 4,000,000 4,000,000 4,000,000 Total Expenses 74,650,196 85,687,880 69,390, ,091,497 EXCESS REVENUES OVER EXPENDITURES 12,386,755 17,107,980 41,289,391 (47,105,107) FUNDS AVAILABLE BEGINNING OF YEAR FUNDS AVAILABLE END OF YEAR 114,537, ,923, ,970, ,259, ,923, ,970, ,259, ,154,778

23 2019 Budget Resolutions

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32 PARKER WATER & SANITATION DISTRICT District Fee and Rate Schedules Effective January 1, 2019 Tap & Development Fee Schedule Water Water Meter Water Sewer Resources Resource Size SDF SDF SDF Toll 3/4" $ 10,470 $ 5,000 $ 14,000 $ 5,000 1" $ 20,940 $ 10,000 $ 28,000 $ 10, /2" $ 41,880 $ 20,000 $ 56,000 $ 20,000 2" $ 73,290 $ 35,000 $ 98,000 $ 35,000 3" $ 167,520 $ 80,000 $ 224,000 $ 80,000 Water Rates Residential and Multi Family Accounts Per Single Family Equivalent (per month) Water Service Fee $ Tier 1 Per 1,000 gallons for first 6,000 gallons $ 2.33 Tier 2 Per each additional 1,000 gallons up to and including 20,000 gallons $ 4.51 Tier 3 Per each additional 1,000 gallons in excess of 20,000 gallons $ 9.30 Commercial Accounts Per Single Family Equivalent (per month) Water Service Fee $ Per 1,000 gallons $ 3.93 Irrigation Accounts Per Single Family Equivalent (per month) Water Service Fee $ Per 1,000 gallons $ 7.06 Hydrant Water Accounts Water Service Fee (per month) $ Per 1,000 Gallons $ 7.62 Sewer Rates Per Single Family Equivalent (per month) Sewer Service Fee $ 9.40 Per 1,000 Gallons* $ 9.26 *Based on the average water consumption in the months of December, January, and February. Sewer without winter average consumption (per Single Family Equivalent): Flow rate of 4,500 gallons is $41.67 plus $9.40 sewer service fee per month Total $51.07 Note: The District Manager may adjust the method of calculating the average monthly sewer flow rate in exceptional circumstances. Sewer is billed at WQA or actual consumption, whichever is less.

33 PARKER WATER & SANITATION DISTRICT District Fee and Rate Schedules (Continued) Miscellaneous Fees Effective January 1, 2019 Public Records Research 1st Hour No Charge Each Additional Hour per hour $ Document Copies per page $ 0.25 Suspension Fee $ Owner Transfer Fee $ Owner Transfer Fee (Final Read Not Ordered in Advance) $ Returned Check Fee $ Bulk Water Station Rate Monthly $ Per 1,000 Gallons $ 4.06 Penalty for Unauthorized Water Use Per Incident plus per gallon charge $ Per Gallon $ Engineering Plan Review & Inspection Fee Water & Sewer Main Construction Per Linear Foot $ 2.00 Minimum Charge $ 2, NOTE: For first 2 Reviews plus Inspection Engineering Plan Review (more than 2 reviews) per linear foot $ 1.50 Engineering Tenant Finish Review $ Engineering Variance Request $ Irrigation Inspection Plan Review Fee $ Inspection Fee per each 1,000 sq ft of landscape area $ 5.00 Hydrant Water (see Hydrant Water Accounts above for monthly rates) 2 1/2" Fire Hydrant Meter Deposit $ 1, Dolly Meter including Backflow and End Point Deposit $ 2, Inclusion Fee (per Acre) $ 5, Water Surcharge (per SFE) $ 2,000.00

34 PARKER WATER & SANITATION DISTRICT District Fee and Rate Schedules (Continued) Miscellaneous Fees Effective January 1, 2019 Meter Set Fees ¾ $ $ ½ $ 1, $ 1, $ 1, $ 2, Water & Sewer Service Line Inspections (per trip) $ Meter Re Set Fee $ Service Line Re Inspection Fee (per trip) $ Unscheduled Customer Initiated Service Request $ Clear Water Test (individual well owner) $ Clear Water Test Fee First 1,200 Linear Feet $ Each Additional 1,200 Linear Feet $ High Chlorine Test Fee $ Industrial Waste Permit $