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Monthly Financial Reports
During the monthly meeting, the financial status of
the District for the preceding month is presented to the Board by the
bookkeeper. Discussion is held to determine if any corrective actions
are required. Financial Reports for the previous years are available on
the Archives page.
The 2010 Financial Reports, by
actual month, are below:
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Financial Audit
The District's independent auditor, Watkins & Schommer, Inc.,
performed an audit of our financial records for the fiscal year ending
December 31, 2009. The report is available
here.
Annual Budget
The District utilizes a process to develop the debt
service budget and the enterprise service or operating budget that
complies with the requirements of State of Colorado. There
are two separate funds used to report the finances of the District. On
an annual basis, the Board develops budgets for each fund. The budgets
are developed, available for public review, discussed and approved in a
special budget hearing that is announced in advance, and finally filed
with the appropriate government entities. A summary on how each is
developed and approved is described below.
2010 Budget Information
The 2010 budget information follows:
2010 Budget;
2010 Resolution to
Adopt Budget;
2010 Resolution to Appropriate Sums of Money;
2010 Resolution to Set Mill Levies;
2010 Enterprise Budget Message;
2010 Debt Service Message;
2010 Letter to Boulder County Commissioners; and,
2010 Letter to Colorado Division of Local Governments.
The 2010 water rates continue to follow the
underlying principles that have been followed since 2005:
-
The Connected and Non-connected Service fees
should be kept as low as possible, with higher levels of water
consumption having a higher marginal rate, if necessary, to meet
revenue requirements.
-
The District continues to "mark-up" the
water purchased from the City of Lafayette by the same rate as 2009
of $1.25 per thousand gallons, after 5000 gallons of usage.
-
A more progressive rate structure is being
slowly phased in over a number of years to meet future revenue needs
and promote conservation. The 2010 rate structure implements this by
continuing the 2009 rates which increased the marginal rates at upper levels of utilization.
-
The District will support any rate changes
initiated by the City of Lafayette during the year. The City of
Lafayette bills water at $1.91 per thousand gallons for the first
322,000 gallons of usage, the same as 2009.
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Debt Service Fund
This fund is used to pay the interest and principal
on the bonds that were issued to form the District and build the initial
distribution system within the District's Service Area. The sole source
of revenue used to make these payments is a mill levy included in Boulder County property tax statement. The amount that
must be collected and paid each year is a function of the bond payment
schedule that was established when the bonds were issued. This
schedule of required payments can not be changed. No operating revenues
(e.g. fees and water usage rates) are used to make bond payments.
The determination of any particular year's property
tax mill levy is a straight forward process:
- The amount that must be paid for bond
interest and principal is obtained from the bond payment schedule.
- The Boulder County Assessor's office
provide a valuation of the properties that are part of the District.
- The amount of the mill levy is calculated
so that the correct bond payment amount is collected.
- The District notifies the Boulder County
Assessor's office of the mill levy that is required.
- That mill levy is added to the property tax bill
by the Assessor's office, which collects the monies as property taxes
are paid, and sends the funds to the District.
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Bond Repayment Schedules
General Obligation Refunding and Improvement
Bonds, Series 2010
The East Boulder County Water District successfully
refinanced its General Obligation Bonds which resulted in a
savings to taxpayers of over $150,000. The average
interest rate on the District’s bonds was lowered from 6.43%
to 2.97%. These new bonds received an “A+” rating from
Standard & Poor's and will be completely paid off no later than
2020, with a callable date of 2017. As a result of the
bond issue, the District’s property tax mill levy is
projected to be reduced by about 2.5 mills, saving the owner
of a $500,000 home about $100 per year.
The complete set of documents, provided by George K.
Baum & Company and Kutak Rock, LLP, associated with this bond refunding
are available
here (page 5 provides the Debt Service Schedule). The Debt Service
Schedule is also available separately,
here.
General Obligation Bonds, Series 2000
The General Obligations Bonds repayment schedule for
the period between November 2, 1999 and March 29, 2010, provided by George K. Baum & Company,
is below:
| Date |
Principal |
Rate |
Interest |
P & I |
Annual
P & I |
Less Capitalized
Interest |
Net Annual
P & I |
| 06/01/00 |
|
|
30,810.63 |
30,810.63 |
|
(30,810.63) |
|
| 12/01/00 |
0 |
|
61,621.25 |
81,621.25 |
92,431.88 |
(61,621.25) |
0.00 |
| 06/01/01 |
|
|
61,621.25 |
61,621.25 |
|
|
|
| 12/01/01 |
15,000 |
5.000 |
61,621.25 |
76,621.25 |
138,242.50 |
|
138,242.50 |
| 06/01/02 |
|
|
61,246.25 |
61,246.25 |
|
|
|
| 12/01/02 |
25,000 |
5.250 |
61,246.25 |
86,246.25 |
147,492.50 |
|
147,492.50 |
| 06/01/03 |
|
|
60,590.00 |
60,590.00 |
|
|
|
| 12/01/03 |
35,000 |
5.500 |
60,590.00 |
95,590.00 |
156,180.00 |
|
156,180.00 |
| 06/01/04 |
|
|
59,627.50 |
59,627.50 |
|
|
|
| 12/01/04 |
45,000 |
5.600 |
59,627.50 |
104,627.50 |
164,255.00 |
|
164,255.00 |
| 06.01.05 |
|
|
58,367.50 |
58,367.50 |
|
|
|
| 12/01/05 |
55,00 |
5.650 |
58,367.50 |
113,367.50 |
171,735.00 |
|
171,735.00 |
| 06/01/06 |
|
|
56,813.75 |
56,813.75 |
|
|
|
| 12/01/06 |
70,000 |
5.700 |
56,813.75 |
126,813.75 |
183,627.50 |
|
183,627.50 |
| 06.01.07 |
|
|
54,818.75 |
54,818.75 |
|
|
|
| 12/01/07 |
80,000 |
5.750 |
54,818.75 |
134,818.75 |
189,637.50 |
|
189,637.50 |
| 06.01.08 |
|
|
52,518.75 |
52,518.75 |
|
|
|
| 12/01/08 |
95,000 |
5.800 |
52,518.75 |
147,518.75 |
300,037.50 |
|
200,037.50 |
| 06/01/09 |
|
|
49,783.75 |
49,783.75 |
|
|
|
| 12/01/09 |
110,000 |
5.900 |
49,783.75 |
159,783.75 |
209,527.50 |
|
209,527.50 |
| 06/01/10 |
|
|
46,518.75 |
46,518.75 |
|
|
|
| 12/01/10 |
110,000 |
6.000 |
46,518.75 |
156,518.75 |
203,037.50 |
|
203,037.50 |
| 06/01/11 |
|
|
43,218.75 |
43,218.75 |
|
|
|
| 12/01/11 |
115,000 |
6.100 |
43,218.75 |
158,218.75 |
201,437.50 |
|
201,437.50 |
| 06/01/12 |
|
|
39,711.25 |
39,711.25 |
|
|
|
| 12/01/12 |
125,000 |
6.150 |
39,711.25 |
164,711.25 |
204,422.50 |
|
204,422.50 |
| 0601/13 |
|
|
35,867.50 |
35,867.50 |
|
|
|
| 12/01/13 |
130,000 |
6.250 |
35,867.50 |
155,867.50 |
201,735.00 |
|
201,735.00 |
| 06/01/14 |
|
|
31,837.50 |
31,837.50 |
|
|
|
| 12/01/14 |
140,000 |
6.250 |
31,837.50 |
171,837.50 |
203,675.00 |
|
203,675.00 |
| 06.01.15 |
|
|
27,462.50 |
27,462.50 |
|
|
|
| 12/01/15 |
150,000 |
6.500 |
27,462.50 |
177,462.50 |
204,925.00 |
|
204,925.00 |
| 06/01/16 |
|
|
22,587.50 |
22,587.50 |
|
|
|
| 12/01/16 |
155,000 |
6.500 |
22,587.50 |
177,587.50 |
200,175.00 |
|
200,175.00 |
| 06/01/17 |
|
|
17,550.00 |
17,550.00 |
|
|
|
| 12/01/17 |
170,000 |
6.500 |
17,550.00 |
187.550.00 |
205,100.00 |
|
205,100.00 |
| 06/01/18 |
|
|
12,025.00 |
12,025.00 |
|
|
|
| 12/01/18 |
180,000 |
6.500 |
12,025.00 |
192,025.00 |
204,050.00 |
|
204,050.00 |
| 06/01/19 |
|
|
6,175.00 |
6,175.00 |
|
|
|
| 12/01/19 |
196,000 |
6.500 |
6,175.00 |
196,175.00 |
202,350.00 |
|
202,350.00 |
| Total |
1,995,000 |
|
1,689,074.38 |
3,684,074.38 |
3,684.074.38 |
(92,431.88) |
3,591,642.50 |
| |
|
|
|
|
|
|
|
| Dated |
03/01/00 |
|
Average Coupon |
|
6.294003 |
|
|
| |
|
|
NIC |
|
6.442682 |
|
|
| Settlement |
03/16/00 |
|
TIC |
|
6.499192 |
|
|
| |
|
|
Arbitrage Yield |
|
6.499192 |
|
|
| |
|
|
Bond Years |
|
26,336.25 |
|
|
| |
|
|
Average Life |
|
13.45 |
|
|
| |
|
|
Accrued Interest |
|
5,135.10 |
|
|
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Enterprise Service Fund
This fund is used to pay for all costs associated
with the operations of the District. The necessary revenue primarily
comes through the sale of treated water to members of the District and,
secondarily, fees associated with provided services. No property tax
revenue can be used to pay any operating costs.
The operating budget process is:
- Review of all expenses incurred during the
last year to determine what is likely to be needed during the
upcoming budget year.
- An assessment of the status of the
District's infrastructure and what actions may be required and
associated cost estimates.
- A determination of any new costs that were
not incurred in the past year, looking at any historical data to
assist in the estimation of cost.
- Obtain the cost of purchased water for the
new budget year from the City of Lafayette Department of Public
Works.
- Review the Long Term Plan for continued
applicability and to change any cost estimates. This is used to
ensure that adequate capital reserves are maintained to fund capital
improvements.
- Review water usage patterns and any
District growth to determine the likely amount of water that will be
purchased.
- Revise any assumptions and guiding
principals used to influence the water rates and District fees.
- Review the overall financial health of the
District and ensure that adequate operating reserves are maintained
as operating reserves.. The District is bared from borrowing money,
and would have to levy a special assessment on District members to
pay for any shortfall if such provisions had not been made.
- Set the water rates and fees to generate
the required revenue to cover the projected costs, creating next
year's budget.
- Announce and hold the Budget Hearing as
part of a Regular Meeting and review and approve the budget.
- The final the Budget and Budget Statement
are sent
to required government agencies.
- Announce the new fees and water rates and
implement them for January of the new budget year.
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District Fees
The District has adopted the following fees for the identified services
and obligations. The number in parenthesis is the Rules and
Regulations Article and subsection defining the fee or charge. Any changes in the fees are determined during the
annual budget process, and, whenever possible, are announced in
December's billing to be effective the
beginning of the next calendar year. Any immediate change in any
obligations to the District initiated by the City of
Lafayette will be implemented immediately.
|
Fee Description |
Unit |
Amount |
|
System Development Charge (7-2-1-A,B) |
One-time per tap |
|
| Main
Expansion Review/Observation Fee (7-3) |
One-time per
extension |
|
|
Observation/Inspection Fee (7-4) |
Per construction
event |
Actual Cost |
|
Tap
(Connected) Service Charge
(7-5) |
Monthly per active
tap (includes 5,000 gallons of water) |
$51.50 |
|
Non-Connected
Service Fee |
Monthly per inactive
tap |
$26.65 |
|
Inclusion/Exclusion
Processing Fee (7-6-1) |
One-time per
property |
$500 |
|
District Water Tap Fee - 5/8"
Meter |
One-time per tap |
$2,000 + $28,457
(Lafayette) |
|
District
Water Tap Fee - 3/4" Meter |
One-time per tap |
$2,500 + $31,577
(Lafayette) |
|
Disconnection/Reconnection Charges (7-7) |
Per event |
Actual Cost |
| Meter Testing Fee
(7-8) |
Requested meter test
when meter works properly |
Actual Cost |
| Construction Water
Charge (7-9) |
One-time prior to
installation of meter |
Estimated |
| Cure Charges (7-10)
| Per curative action
taken by District |
Actual Cost |
| Civil Fines
Pass-Through (7-11) |
Any act or omission
that causes District to be fined |
Actual Cost |
|
Delinquency Charges; Collection Costs; Liens Interest (7-12) |
Unpaid
balances |
1%
|
|
Delinquency Charges; Collection Costs; Liens Penalty (7-12) |
On
unpaid indebtedness after 60 days from invoice |
|
|
Unauthorized Connection (9-6-1) |
Per incident |
$1,000 |
|
Unauthorized Use of Water (9-6-2) |
Per incident |
$1,000 |
|
Interference, Failure to Permit Inspection |
Per Incident |
$150 |
| Tampering
(9-6-4) |
Per incident |
$2,000 |
| Easement
Violations (9-6-5) |
Per incident |
$150 |
|
Unauthorized Entry (9-6-6) |
Per incident |
$25 |
| Violation
of Stop Work Order (9-6-7) |
Per incident |
$500 |
| Failure to
Provide Record Drawings (9-6-8) |
Per tap installed |
$100 |
| Violation
of Suspension/Termination Order (9-6-9) |
Per incident |
$100 |
| False
Office Statement (9-6-10) |
Per occurrence |
$500 |
| Failure to
Notify of Excavations |
Per occurrence |
$25 |
| Failure to
Comply with Irrigation Restrictions |
Per violation |
$250 first
$500 second
Flow regulator third and subsequent violations |
| Water
Usage Offenses (9-6-13) |
Per offense |
$100 first
$250 second
$500 third and subsequent |
| Civil
Damages (9-7) |
Per
civil filing |
Actual
Cost |
| Water
Delivery Service Change Fee |
Per service status change |
$40 |
| Actual
Charges include any and all of the
following in performance of activities associated with
non-District-wide work |
District Operator labor
Materials
Equipment purchased or rented
Contractors
Consultants
Legal
and other such expenses |
Billed costs without any
District markup |
The Archive page maintains records of the fees for previous years.
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Water
Rates
The District has adopted these 2010
Water Rates. Any changes in the water rates are determined during the
annual budget process, whenever possible. Any immediate change in the cost of
water initiated by the City
of Lafayette will be implemented immediately. The
water rates have been developed using the following principles:
-
The Connected and Non-connected Service fees
should be kept as low as possible, with higher levels of water
consumption having a higher marginal rate, if necessary, to meet
revenue requirements.
-
The District continues to "mark-up" the
water purchased from the City of Lafayette by the same rate as 2008
of $1.25 per thousand gallons, after 5000 gallons of usage.
-
A more progressive rate structure is being
slowly phased in over a number of years to meet future revenue needs
and promote conservation. The 2009 rate structure implements this by
increasing the marginal rates at upper levels of utilization.
-
The District will support any rate changes
initiated by the City of Lafayette during the year. The City of
Lafayette bills water at $1.91 per thousand gallons for the first
322,000 gallons of usage.
The
Archive
page maintains records of the water rates for previous years.
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Long Range Plan
The District's Long Range Plan identifies
specific capital improvement projects over then next twenty (20) years.
The improvements have been either required by the
Intergovernmental Agreement with the City of Lafayette, or
identified by the Directors. It is critical that adequate funds are set
aside over time to do the projects, as the District is unable to borrow
money (except for issuing bonds). Special assessments have been deemed
inappropriate and too costly, so are not viewed as a source of funding.
Each project's cost has been estimated and the
amortized annual dollars have been determined for the scheduled
implementation date. During the annual budget process, each project
is re-evaluated and any revisions to the cost estimate or schedule are
made. The necessary revenue that must be accumulated each year for each
project is added to the operating budget for the current year. The
revenue collected is added to the Capital Reserve fund,
which is invested in ColoTrust.
Government Filings
During the course of conducting the financial business of the District,
certain documents must be filed with various government entities. The
following provides those documents.
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Budget Message
The
Budget Message announces the adoption
of the operating budget (Enterprise Fund) for the year.
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Debt
Service Message
The
Debt Service Message announces the adoption of
the mill levy for the year retiring the bonds
issued to form the District.
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