From The Pagosa Sun (Chris Mannara):
The 2020 draft budget for the Pagosa Area Water and Sanitation District (PAWSD) was presented to its governing board on Oct. 24.
In the General Fund, the draft budget lists total revenues at $1,116,750 while total expenses are projected to be $1,180,184, leading to an projected ending balance in the General Fund of $900,878 — a projected 7 percent decrease from last year.
Capital projects and contingency are projected to increase 23 percent, going from $10,000 to $12,250, with PAWSD Director of Business Services Aaron Burns ex- plaining that the $2,250 increase is due to an equipment replacement.
That piece of equipment is a GPS unit that is used for locating infrastructure, Burns noted.
In regard to the 7 percent decrease in the General Fund bal- ance, Burns explained that this is related to added expense with a board election year with three seats up for election.
He added that this is also combined with the regular internal transfer of funds to both enterprise funds of the district.
The Debt Service Fund for 2020 is projected to have a beginning fund balance of $22,812, a 42 percent decrease from last year; the ending fund balance for PAWSD’s Debt Service Fund is projected to be $45,229 which is a 98 percent increase from last year’s total.
The 42 percent decrease in the Debt Service Fund’s beginning fund balance is related to a transfer of interest revenue during 2019 to the enterprise funds, Burns noted, while the increase in the Debt Service Fund’s ending fund balance is also related to the projected 2020 interest revenue.
“A transfer to the Enterprise Funds will also be added to the budget for 2020,” Burns wrote in an email.
PAWSD’s Water Enterprise Fund beginning fund balance is projected to have an 8 percent increase, going from $5,534,767 to $5,950,480; the ending fund balance is projected to have a 7 percent increase, going from $5,930,807 to $6,327,892.
Within PAWSD’s 2020 draft budget, water treatment expenses are projected to increase 33 percent, from $903,701 to $1,199,368, and water distribution expenses are projected increase 41 percent, from $957,780 to $1,353,500.
Water treatment costs are projected to increase due to a replumbing project at the San Juan Water treatment plant that would allow for automatic switching from reservoir and river water sources; other items related to this increase are the addition of an employee and some structural repair work, Burns described.
The 41 percent increase for wa- ter distribution was described by Burns as being “skewed slightly.”
“Because actual expenses related to water line replacement and repair were lower than budget in 2019 and we are budgeting for the replacement and expansion of the Putt (sic) Hill water tank in 2020,” he wrote.
Capital projects are projected to be down 38 percent, from $896,502 to $553,510, which Burns explained UV project at the San Juan plant; Burns noted that this project appeared in PAWSD’s budget in 2019.
Within PAWSD’s Wastewater Fund, the beginning fund balance is projected to have an 18 percent increase, going from $2,552,203 to $3,017,909; Burns explained that this increase is because of actual expenses in 2019 being lower than budgeted.
The ending fund balance for PAWSD’s Wastewater Fund is also projected to have an increase, of 4 percent, going from $3,007,349 to $3,117,206.
Within the Wastewater Fund, tap fees are projected to increase by 13 percent, from $28,860 to $32,500, which Burns again noted is because of the 2019 actual figure being slightly lower than the normally budgeted figure used in 2020.
Wastewater collection is projected to go from $706,800 to $927,856, a 31 percent increase, according to the draft budget.
“The District is planning for increased investment in repairing it’s (sic) sewer collection system which will involve the systematic rehabilitation of lift stations and resealing key areas of the system to combat water infiltration during the snowmelt months of the spring,” Burns explained.
Wastewater treatment is projected to have a 24 percent increase from $646,270 to $802,080, accord- ing to the draft budget.
Burns explained that this projected increase is due to mandates made by the state that require effluent testing; this also includes the addition of another employee as well, Burns noted.