Combining operations and upgrades, the Cortez Sanitation District has proposed spending more than $3.8 million in 2016.
The proposed expenditures in the 2016 budget include $1,590,486 for operating expenses and $2,334,930 for repairs and upgrades. Board members face a December deadline to approve the proposed budget, which was released this week.
With about 4,400 residential, governmental and commercial customers, the district projects to collect nearly $2.2 million in service fees next year. Total revenues in 2016 are forecast at just more than $3 million, revealing a projected budget deficit of slightly more than $800,000.
The 2016 CSD budget outlines nearly $1.5 million in capital improvement projects. Those earmarks include $308,500 for plant equipment, $573,000 for heavy machinery and 375,000 for sewer line construction.
After examining the proposed eight-page financial document, Cortez Sanitation District board president Ryan Griglak asked district management officials how the budget would be affected if consumption-based sewer rates returned.
The district switched its commercial rates, based on 20-year-old national averages, in 2014.
CSD manager Tim Krebs said the 2016 budget figures were forecast using its current rate structure, adding that no plans were in place to return rates based on consumption.
“That’s a whole separate meeting of questions to tackle that,” Krebs said.
CSD officials have vowed to re-examine consumption-based sewer fees once the city completes its upgrades to water meters. The first usage data is expected in January, Krebs said.
In addition to securing municipal usage data, Krebs reminded board members that they would also need to weigh water used for irrigation as well as multifamily versus single-family usage.
Griglak subsequently instructed Krebs to obtain an estimate from city officials to obtain water usage data for future discussion.
CSD board members also were informed that the district’s online billing system pay was available.
Customers are required to pay a service fee charged by a third-party provider to use the Internet-based system.
The service fee is 2.75 percent of the total bill, or $1.75 minimum. Customers that set up automatic drafts aren’t charged service fees, an official said.
