The proposed 2012 budget was briefly discussed during last Friday’s Pagosa Area Water and Sanitation District board special meeting.
As of now, the draft of the 2012 budget lists a total operating income for PAWSD of $6,824,091, a decrease of $61,665 from last year’s amended budget figure. The total net revenue anticipated for 2012 is $2,265,375.
Total operating income is divided into three funds: Water Enterprise, $3,948,894; Wastewater Enterprise, $1,923,480; and General Fund, $951,717. The Special Revenue Fund is projected to be brought to an ending balance of zero this year. The Capital Projects fund might also be brought to a balance of zero, but that is contingent on whether PAWSD and the Town of Pagosa Springs will work together to treat the town’s wastewater.
General Fund — beginning balance of $1,611,551, total revenue of $1,001,717, total expenditures of $1,233,566, ending balance of $1,379,702. This is a projected decrease of 14 percent from this year.
Debt Service Fund — beginning balance of $20,019, total revenue of 1,239,617, debt service payments of $1,239,789, ending balance of $19,847, a decrease of 1 percent from this year.
Water Enterprise Fund — beginning balance of $7,688,149, total revenue of $4,476,313, total expenditures of $7,567,298, ending balance of $4,597,164, a decrease of 40 percent from this year.
Wastewater Enterprise Fund — beginning balance of $4,498,173, total revenue of $3,109,362, total expenditures of $3,254,153, ending balance $4,353,382, a decrease of 3 percent from this year.
Among the noted decreases in the budget from 2011 are: legal and professional fees from $178,120 to $106,498 and maintenance from $404,300 to $346,562. The decrease in maintenance is due to the lower cost of maintaining the new Hatcher Water Treatment Plant.
The final budget will not be adopted until the Dec. 13 PAWSD board meeting. The board will have a work session this Friday at 4 p.m. to review and revise the proposed 2012 budget. A public hearing on the budget will be held at 6:30 p.m. on Tuesday, Nov. 8.
During the Wednesday, Nov. 2, Town Council meeting, PAWSD District Manager Ed Winton was set to present the town with a formal proposal including three options concerning how PAWSD might treat the town’s waste water in lieu of the town building a new wastewater plant.
Option 1. The town will build all infrastructure, including two lift stations, and will lay the pipeline. The town will own, operate and maintain the infrastructure. It will pay PAWSD to treat wastewater.
Option 2. The infrastructure construction costs will be split evenly between the town and PAWSD. The town and PAWSD will each pay for one lift station and half the cost of the pipeline installation. The town will then transfer ownership of infrastructure to PAWSD, which will take over the cost and responsibility of maintaining infrastructure. The town will pay PAWSD a lower rate to treat the wastewater.
Option 3. Similar to option 2. Infrastructure will be split in the same way. Then, both entities will explore options to include the Pagosa Springs Sanitation General Improvement District into the Pagosa Area Water and Sanitation District. This would first go to a public vote.
“A main reason for doing this is source water protection,” Winton said. None of the above options would involve wastewater being discharged into the San Juan Water.
“Source water protection is an intangible dollar figure,” Winton said.