From YourHub via The Denver Post (Karen Groves):
After recently completing a 50-year financial plan, the district board is considering options on how to address the expected loss of roughly $1 million per year in operating costs, plus $12 million in capital costs over the next 10 years. That reduces the $35.5 million the district has in reserves to $15 million at the end of a 10-year period.
Scott Morse, assistant manager of Platte Canyon Water and Sanitation District, said Southwest eliminated property tax revenue in 1996 and has relied heavily on interest income generated on the reserve balance. “Southwest is relying on interest revenue on its reserves, but since interest rates have dropped to historic lows they are receiving very little revenue,” Morse said.
According to the district, expenses for rehabilitation and replacement of existing water and sewer infrastructure will be “inordinately high over the next 10 years. Anticipated costs are at $11,800,000.” Morse said while there is a little revenue coming in to offset operating costs, he added, “Our operating costs are $1.5 million, but we’re only receiving revenue off interest of about $500,000.”
Morse said the Southwest District will approach citizens next year on what strategies might work to increase the district’s revenues. “Imposing a surcharge is not something the district will jump into, and a mill levy would have to be voted upon. We can see what happens to the economy,” he said.
More infrastructure coverage here.