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2021 Budget Information

The 2021 budget information has been developed and was presented for final approval at the November 9, 2020 Board Meeting and Budget Hearing.

With the bonds being paid off in December 2020, there is no longer a Debt Service Fund, and, therefore, an associated Debt Service Budget.The proposed 2021 Operating Budget and associated Resolutions and other documents are available. The Long Range Plan funding assumptions is also available.

The water rates to support the Operating Budget are found in Water Rates and the accompaning announcement letter.

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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:

1. Review of all expenses incurred during the last year to determine what is likely to be needed during the upcoming budget year.
2. An assessment of the status of the District's infrastructure and what actions may be required and associated cost estimates.
3. 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.
4. Obtain the cost of purchased water for the new budget year from the City of Lafayette Department of Public Works.
5. 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.
6. Review water usage patterns and any District growth to determine the likely amount of water that will be purchased.
7. Revise any assumptions and guiding principals used to influence the water rates and District fees.
8. 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.
9. Set the water rates and fees, via a Hearing during a Regular Meeting, to generate the required revenue to cover the projected costs, creating next year's budget.
10. Announce and hold the Budget Hearing as part of a Regular Meeting and review and approve the budget.
11. The final the Budget and Budget Statement are sent to required government agencies.
12. Announce the new fees and water rates and implement them for January of the new budget year.

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.

The Archive page maintains records of the fees for previous years.

Water Rates

The District has adopted these 2021 Water Rates on December 14, 2020 during the Regular Meeting and effective January 1, 2021. The 2021 Water Rate Annoucement Letter is available.

Normally, 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 following a Water Rate Hearing.

 The water rates have been developed using the following principles:

1. 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.

2. The 2021 rate structure is the same as the 2020 water rate, including Non-Connected Service Fee. See the Archives for a discussion on setting the 2016 base rate structure elements.

3. The progressive rate structure that has been phased in over a number of years to meet future revenue needs and promote conservation is maintained.

4. The District will support any rate changes initiated by the City of Lafayette during the year, unless special circustances are recognized during the Water Rate Hearing..

The Archive page maintains records of the water rates for previous years.

Long Range Plan

The District's Long Range Plan identifies specific capital improvement projects over 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.

Budget Message

The Budget Message announces the adoption of the operating budget (Enterprise Fund) for the year.

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. With the repayment of all bonds, no Debt Service Message is created.

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Boulder County Tax Levy Letter

With the repayment of the bonds, there is no longer a reason to identify a  mill levy that the District requests the county to levy on all District properties, and therefore, no longer a reason for the letter.

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