November 15, 2023 Study Session
Transcript
Describer:
2024 BUDGET STUDY SESSION
Wednesday, November 15th 2023, at 5:30 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
I. Call study session to order.
II. Review 2024 Budget
III. Adjourn
Board President Jason Blankaert:
Okay. Good evening, Castle Pines, and welcome to the Castle Pines North Metropolitan District 2024 Budget Study Session today is Wednesday, November 15th. It is approximately 530, and we will begin the meeting by calling the study session to order. Our first agenda item today is review the 2024 budgets. I'll defer to you, Nathan.
Nathan:
Thank you. Do we have, Phyllis or Sadie on yet?
I got an email that said Phyllis joined. No. Not yet. Interesting.
Up! There she is.
All right. Because we've got Phyllis. so I know I sent this stuff out and kind of a smattering of different ways. Substantially the text hasn't changed since the word document I sent out last week. So I guess the first thing that I wanted to cover is, just with the individual fund reviews.
So, like the introduction page and then the summaries, if there is anything that you guys wanted added, or would be helpful to have added, I really focus mostly, in the introduction, I covered kind of, the IGA stuff. Talked a little bit about communications. What's that? Oh, the ways, the way that we're splitting funds.
And then, I talked about, like, the difference in the general fund. I have some questions for Phyllis and Sadie on the general fund. The storm, and the conservation one. But really, just a quick explanation of why we don't really have them. they're all carried, even as they're shown in here. They're all, you know, zero ending fund balances.
And then for the water and wastewater, I really focus more on, like, the capital projects going on, individually, not all of them. Just, the kind of large construction ones I left out. I like the facility documentation, that kind of stuff. So I didn't know one of you guys has had a chance to go through it
over the weekend. or if there was anything you'd want to add, change.
Jason:
I looked over at Nathan, and, I think it was pretty much in line with what I thought it should be. I didn't really go over it in too much depth, so, I'm sure Tera might have caught a few things that I glanced over, but, anybody else have any comments on it?
James:
All right. well, I just just really two quick ones. Yeah. Spelling coincide. I had a question on Bill payment fees. again, and this is sort of outside some of these things, but I just wanted to bring it up so that we could address it during the meeting. via credit card. We talked about that last time.
And then the only real thing as far as the the, funds for water and wastewater is the 65 and 35 split. don't really have an issue with that. I just wanted to understand exactly how you came up with that number. Was it based on the actuals and just it was a rough estimate. Us. Yeah. How you feel that money gets divided between those two funds?
Nathan:
Yeah, it's based on the, it's proportional to the revenue that each one of those individual funds receives. So roughly sixty of our total revenue across both funds, roughly 65% ends up in water, 35% ends up in wastewater. And that really only count. We only apply that 65/35 to, largely administrative functions and salaries and pay. So like my pay, Susan, those got those get split that way.
Stuff like elections. You know all of that fun jazz from an operational standpoint, there aren't many light items that do underground utility locates gets split that way. and I think that's all I can think of off the off the top of my head. That is something I could go through. If it would be helpful.
I could go through and kind of.
James:
No, I just I just wanted to know, to have a basic understanding, and I what you said is what I assume, because I think there was a spreadsheet probably a month ago that you kind of went through. And I know that you kind of set those numbers and, probably only a follow up on that is the envision that ever really changing or that's sort of just what you've seen historically.
Nathan:
Yeah. So that's something that we'd adjust annually. So especially after we go through like our rate and fee study, if that percentage shifts at all, we'll just match on an annual basis.
James:
All right. Thank you very much. Appreciate it. Good question.
Nathan:
Oh, and for the bill, pay fees, just so you're aware, we did get I did have to get a 30 day post on that.
So on the board meeting on the 27th will be able to address and take action on it.
James:
Okay. Thank you. And does that appear anywhere in the budget as a like, offset or assumption?
Nathan:
That I don't know. Phyllis or did we lose zoom? She's still there. Oh, okay.
Phyllis Brown, Community Resource Services of Colorado (CRS):
No. I'm here, I'm here. Phyllis is, I go ahead.
I don't I don't know that we have an offset for that. I guess when we find out what that is, we can add that in.
James:
Okay. Yeah, it's, you. When we spoke to you last time, you made it sound like it was. And I think you put up a number. It was several thousand dollars in banking fees we were paying to cover people's credit card for, you know, payments.
And I just want to make sure that we we took care of that coming up. So thank you
Phyllis:
For that. And also we're looking at, looking at bank fees in general. And we, we're talking about switching banks, but we're waiting till I think the first of the year. So, you know, the bank's been in contact with Nathan and with us and that will help save fees as well.
James:
Okay. Thank you very much.
Nathan:
Yeah. I have, I actually have an email, from Tera. I'm going to address a few questions that she had tonight. And so she did have she asked about the credit card fee. So I imagine it is directly in here somewhere. But we can we'll we'll address that at the 27. There you go.
See if Jason's got got her going on. Oh. Got it. Yeah. So 60, 60, 51, 59. Oh.
Yep, yep. Oh, gotcha. sorry, but. Yeah. Yeah. So that is I'll, I'll note that in here. And so if we when we take action on that next week, or at the next meeting, we can, we can remove that as an expense.
And my guess would be that there is a correlating line item in the wastewater fund as well. That was 51, 59. yeah. So we have 40,000 and each of the funds for that. So we'll, we'll be able to nix that one.
Board Member Director Leah Enquist:
Nathan, you apologies if someone. Go ahead. Someone asked this. You answered it and I didn't catch it. But a lot of these especially. Oh, it's never mind. It's because we're getting rid of the general fund, and that's why there is nothing.
Nathan:
Correct. Yeah. Yep. And so we can get to that in a second. Sorry, I'm thinking out loud.
I'm making it wildly confusing. So a couple other things that Tera had sent in her email. A couple of typos. And so this, this, the the word, the wording has been barely proofread at all. I ran through it once, to get through. And so we'll we'll get that. we'll get the error, grammatical and spelling errors out of there.
I've got a few of them just sitting here. So one thing that I wanted to highlight is the communications budget. As it kind of shows in here, it looks like we've got a 274% increase in that one line item. And the reason for that large increase is because we're combining a bunch of stuff just to kind of just to simplify it.
So it was split across, the general fund, water, wastewater and even a little bit in storm, website and stuff like that was all separated out. There was a couple other line items. And so we're not actually in the overall communications total.
So the in terms of the combined line items, 2023 was looks like 180,000 and we're like at 178,000 now. So it actually is slightly cheaper across all of the combined line items. And then condensing the budget. yeah. And I'll have to we did I did a couple adjustments in there. But it's, it's roughly it's within a couple thousand, a few thousand dollars of how much we've spent in those areas.
Historically. It just all shows up in two line items now instead of 5 or 6.
Another one that I need to take another look at, over the next week or so is, would be on page.
I think page ten.
Page ten, water treatment plan expenses. It's, 66, 53, 30. about three quarters of the way down on the page. That's 700,000 is, you know, kind of we're carrying forward what we had, but we had done in the past couple of years there. That number is not, as necessarily as it seems. So I need to go back and see.
We had that. We capitalized a lot of those expenses based on what those original account account codes were. And so I don't think we're actually spending $700,000 a year for that one line item, treatment plan R&M covers, you know, any any SCADA, communication stuff we have going on, chemical treatment comes out of chemical treatment comes out of there.
If anything breaks at the plant that comes out of that line item. There's there's a few things that come out of there. And another thing that could be driving that up. I just need to take a look at it is, the really, really heavy expense. It's like $200,000 is what we've had to pay to haul off water from our backwash supply or a backwash waste tank.
We've had to do that at least once a year, sometimes twice a year. It's wildly expensive. That number gets driven way, way, way, way down with the Backwash reclaim project. And so we're we're going to be able to cut that by about 75%, because we just don't have to haul as much water off of it. And so that could be another contributing factor.
So I'll take another look at that one. So that line item will likely, go down for the, public hearing budget presentation on that one. She asked about credit card fees. Again, we're going to address that. We can address that at the next board meeting. yeah. And so then I have a few questions for, Phyllis and Sadie or if you guys have any questions for me,
Jason:
can we just go through this?
Starting with the general fund on page three and just see if anybody has any questions about, line items. We can breeze through this pretty quick, if that sounds good. Questions?
Leah:
Yep. just before really quick question about the credit card fees, what do we use a credit card for?
Nathan:
We don't. So the credit card. Well, I mean we use credit.
We have three internal credit cards. The credit card fees, our fees from bill pay. So when people go to pay their bills, we're, we're we are eating those credit card fees. We've never got it made a move, a motion to pass those on to our customers, which is something that we can do. We've talked about it with, previous boards.
We're really hesitant to go down that road. and it sounds like I don't mean I agree with you guys, but it sounds like moving away from that and been putting the, changing that so that when people pay with a credit card online, that they pay for their own credit card piece.
Leah:
Got it. Okay. No. Thank you.
That makes sense. I feel like that's becoming more and more common to pass that through. Yeah.
James:
Real quick, the, Centennial delivery charges. I remember on the tour, it was 400k a year to flip the switch. Kind of
Nathan:
500. Yeah, 490, something like that.
James:
Okay. And then for 2024, proposed it at 100 unless I'm read two spots.
Okay. So it's two spots. Capacity readiness and centennial. Okay, I got you. Thank you. I saw the slide. I just, should have looked up a line. Oh, no.
Nathan:
It got me earlier today, too. I was like, man, how do we mess that up? So I'm glad I'm not alone.
Jason:
So now that the general fund and, the city has taken over the IGA of the parks completely effective, January 1st, we can pretty much skip through the general fund, conversation because there is not one or there won't be one.
Nathan:
Yeah. Correct. And so that's one thing we call it once we're done going through here. I'll address with Phyllis and Sadie to try and get an understanding on.
Phyllis:
Yeah, I do have it. Well, actually, they took over effective April 1st of 2023, which is why you see limited expenses in there.
Nathan:
Right? And so the because we were going to have to carry a general fund if the ballot measure didn't pass, it would have been like a one on one line item because it would have come in there and gone through.
And so I guess my question is, can we for the general fund, the storm drainage fund and the Yeah, the conservation Trust fund, can we completely eliminate those from the budget and then just have them show up in the revenue section of water and wastewater?
Phyllis:
I would leave it because you've got it in your budget. You've got to put the prior year's in there.
And so you have to leave those items on that. So it's second. Secondly. Yeah. Secondly, are we because they have to amend their service plan don't they. Before they could do that or
Nathan:
We we have to amend the service plan. that's all that's on us to amend our service plan. But okay, shouldn't I. Yeah. It makes sense to just keep them there as blank line items
because of the prior years that that makes a lot more sense.
Phyllis:
And so you just have zeros there.
Nathan:
Okay. Perfect. And I'll add that to my description of those as to why we still show them. cool.
Phyllis:
I also want to say before that I unfortunately I have another, budget session and meeting that I couldn't get out of, and I'm going to have to leave early, so Sadie's on and she could take notes. if Nathan can't answer questions, I apologize for that, but, just good timing.
Nathan:
Do you have to, bill, right now?
Phyllis:
No, I have ten minutes.
Nathan:
Okay. I'm going to jump to ask me fast. Yeah, I was gonna say I'm gonna I'm going to take those ten minutes then, so the other question, that I had, I got logged out here. Hold on. It was just in my mind, and I have lost it.
Oh. for the, for the audit. So we're still running the 2022 column. Is that still estimated, or is that actual now, because we've completed the audit on those,
Phyllis:
we'll be able to update that. I just got a draft from the auditor to look at so okay, 2022 so they're still working on it, but before yeah, before my final.
But even when is the budget,
Nathan:
The public hearing is on the 27th. Yeah, the 27th.
Phyllis
So, so I don't think we'll have a final, but I will look, but for the next rep, I'll true it up to whatever is on that all draft. If anything's changed from what I have in here.
Nathan:
Perfect. Okay, cool. I think that was the only other question I had.
Specifically for you. So that's where that's easy.
Phyllis:
You got, you know, this. You know, this whole thing, Nathan, you got it all down in.
Nathan:
I've been staring at nothing but this document for I know it feels like several decades.
Leah:
Well, I was going to ask art, like Nathan, do you put together the budget or how does that process work?
Nathan:
it's it's definitely a combined effort for us and the and the finance team. And so they they look at a lot of line items just get projected. So based on past spending, we go forward, things like the capital expenses, treatment expenses, operating expenses, those are things that I have to look at. And so it's, it's really just my position as much more information, information gathering in that in that point.
So I work with our engineers a lot. Semocor was wildly helpful. Will, our operations manager gave me a ton of. He just did a ton of legwork for me. And so he called, call around, got updated chemical cost. He called all of our contractors to see who was changing any, any price structures, anything like that.
So we were able to incorporate all of that stuff. and so I, you know, and that's my job to kind of review it and then present it to you guys with our needs. And then, ultimately you get to make the, the decision on it. But it's, it's it's a joint effort.
Phyllis:
Yeah. We set the template all up.
We send it to Nathan. He he makes a big mess of it, sends it back. So we go ahead and, yeah, I, I true up
Nathan:
And I grab Phyllis' Excel sheet and try to delete as few formulas as possible.
Phyllis:
I know don't don't mess with my formulas. And then we, you know, I check to make sure whatever we had last time, I have like on the side of these, like what we had last time.
So we can kind of track where we're making changes if, if questions come up. So it's quite a process when you get a lot of line items, but I think we got a good handle on it.
Jason:
Thanks for your work on this us. Before you have to leave, I want to say thank you.
Phyllis:
Okay. Oh you're welcome.
Nathan:
Okay if anybody else doesn't have anything for Phyllis, I think we can probably just go back to running through the sheets.
Jason:
So just pick up at, since, like we discussed, the general funds is gone. The conservation from this gone. But what we can pick up with the water enterprise Fund.
Nathan:
All right, so that starts on page eight is the description. And then nine is the actual starting of the account codes.
Jason:
What was the ditch water revenue? Nathan. what line item? I'm sorry, 4290.
Nathan:
Ditch water revenue. That's, water sold for the, farms that we don't have anymore. So we we rented. We, there were two. They paid for water and rent separately. So we don't have that revenue anymore.
Jason:
Just, going forward or next time, could we get a third spreadsheet that has the enterprise fund and the, wastewater fund, the combined, I don't know what's called the back office section merged so that we could see the totals on both of those. You know, I'm asking. Not entirely. You want to just like, so like because, like, for salaries, you know, we have some salaries that come out of the enterprise water and some I guess they're the same line item for both.
Can we just get a third spreadsheet that has those merged? Does that put extra work on you?
Nathan
Yeah. I don't that'll be a, Phyllis and Sadie and me combined one. But I think I think that makes a lot of sense for those. And that would actually help with, the explanation we were talking about a little bit earlier on that 65/35 split.
So you have like an overall. yeah. So I think that, you know, just, fifth column there. okay. I like that.
Jason:
Okay. Looking over page nine, does anybody have any questions?
Leah:
And I, kind of I think we talked about 5169, like the communications, public outreach, just. But that's a big increase.
Nathan:
And so, so, we're on the same page nine,
Leah:
Whoa and same with water rebates. Right under that.
Nathan:
Yep. And so that so 5169. That's the that's the one that we combined a bunch of different light items and it's also captured.
So there was some in the general fund, there was some in stormwater. And then even if you go down to the bottom of that page, it's 60, 60, 51, 72. So like that public relations line item, that dollar amount got folded up into that total. And so like I said, the total increase there, it's, it's a, it's a big increase for that account code.
But the actual overall spending hasn't changed significantly Anyway.
Leah:
I feel like you said that already. Sorry.
Nathan:
I that's all right. Sometimes I talk like an auctioneer. Except with more mumbling.
Jason:
All right. We can move on to page ten. Nobody's got any other questions on page nine.
So, anybody have any questions on page ten? I'm not seeing any huge jumps anywhere.
Leah:
No, this one's more just because I'm curious, what's the South Metro water based dues. I'm sorry. 5240. It's the South Metro water base dues. I'm just curious what those are.
Nathan:
Honestly, I am not sure what that was. My guess is it's for, our membership in South Metro SMRA.
But I'll look. I'll look into that one, and get it back to you.
Leah:
I mean, super low. I mean, there's no expense associated with that. I just. Yeah, I also wanna make sure that we're not overlooking something. So it looks like we budgeted for it and didn't pay for it in 23. But I'll look I'll look into that one.
Jason:
All right. Is everybody ready to move on page 11.
James:
Well, just a quick one. Wells Expenditures 5320. There's like a $50,000 increase between last year and this year. Estimated or proposed. And I just wondering if you know what that line item is specifically and what the money is the big deltas going for.
Nathan:
Yeah. So that's actually, more of an accounting function than it is.
anything else? We, had. Well, rehabilitation listed as a capital expense. I actually reached out to a couple other water districts to see how they account for that. And, it doesn't really. You're not purchasing anything new? And so when I was looking at it, it kind of struck me that it wouldn't make a lot of sense as an actual capital expense, that while we do those, we we still need to, you know, rehab wells we do 2 a year.
But that it's actually an operating expense. And so that got moved from it got split out of capital with the capital funds that we have there now just for equipment replacement. And then, it got moved into that line item so that it's just accounted for properly. All right.
James:
Another small one. telephone alarms 5201. Top of the page, $10,000 decrease between last year and this year, estimated versus proposed.
And I'm just, is that like a service contract or is that hardware or is that,
Nathan:
yeah, it's it's all across the board.
Jason:
So that's to the pager thing too.
Nathan:
So the, the 2023, we it doesn't it goes in the pager does fit in that one. That Doppler contract does sit in there. the 2023 was elevated because we did a lot of, like hardware investment.
We replaced alarms at all of our buildings, facilities. And so the the ongoing cost that we have there is just like the monthly service fees that come with our monitoring. Okay. Thank you. And telephone and telephone service for this building. as well.
Jason:
All right. We ready to move on to 11 now?
Board Member Director Jana Krell:
Nate, I have a question on page 11. so on the revenues, the amount that's transferred from the general fund, how is that number established? And will that continue into 2025? And same question as we get to waste water, not to jump ahead, but where where do those numbers come from.
Nathan:
So those are the those are the property tax dollars that we collect.
And so one thing that we'll have to do, I'll, sit down with Phyllis and Sadie on is we have to really dial in our mill levy certification. And so that number is driven by how many mills we do, we decide to collect. And then it's capped by 10%.
Jana:
So that is related to the mills that we're collecting of it.
So then we will see that the general fund then continue to transfer it.
Nathan:
That's how we've that's how we're accounting for it right now. But okay. No not we'll we'll post. It'll show up as rather than a general fund transfer that will show up as, you know, like Mill Levy. It'll look different. Yeah, it will change the title of that line of call basically to like Mill Levy or whatever.
Jana:
Okay. But that and for the wastewater. So same situation. It's going to be based on this okay. Mill spread in.
Jason:
Alright does anybody have any questions on page 11.
Nathan:
There were a couple changes. Large changes actually, in the capital expenses, the most noticeable one is for the, filter rehabilitation program. When I first gave you that, that one, I think it had, like $1.4 million in there. That is still going to cost the same, when we, I had a meeting with Kennedy Jenks, and really kind of wanted to dial, like, just get our timelines dialed in a little bit more.
So the this money is only going to be covered in 2024. Is going to cover the, final design CDPHE review, and then the pilot, phase. So we have to we're actually going to have to remove part of one of our filters to put this new media in and do a test run with it for a while to prove the efficacy.
And then there's also a ton of ongoing sampling where we're taking samples from all of our source water in our wells. It's like a 100 sample bottles of well or something. It's it's a lot, on a monthly basis. So that's to cover those costs, which is just moving it into the, into the design. well, we really looked at all of that timeline.
There's just no reasonable way we were going to be able to do construction inside of 2024. We're still going to do it, in the off period of next year. so the goal will be to be ready to bid, probably sometime in October, in November, and then actually start construction 2025. And so that larger the the remainder of that $1.4 million will come back.
It's just going to show up in the 2025 budget. I just wanted to make sure that you guys knew that that 500,000, which is heavy. I don't think we're going to, I don't think we're going to need that much, but we just wanted to make sure we had it covered. We're not entirely sure what that what installing that pilot is going to look like.
That's why I don't think we're going to use quite that much this year. but we just want to make sure we have that base covered. And then in 2025, we'll have the actual construction costs.
Jana:
So, I have another question just in general on the spreadsheet, should it. So at the bottom of page 11, shouldn't the ending fund balance be the same.
So like the ending budget balance of 2022, shouldn't that be the same as the beginning fund balance of 2023 like diagonally? Because if it ends one year, shouldn't it start the next year? Because it does from 2023 to 2024, you see the 93 million and you carried over. But then I look at the others going, oh, what happened between the end of the year and the beginning?
Nathan:
Yes, that's a good question, Sadie Do you have that one or is that something that will get taken care o?
Jana:
Leah pointed out that the oh it's budget versus estimated. So there's it does.
Nathan:
So the 2022 invested the estimated is the estimated expenses. And once filled once we get the, it does match, final audit that'll get that'll get lined up.
Jana:
Okay. No, I do see that I'm skipping over the I'm looking at the budgeted instead of the estimated.
Okay. Thank you. Sorry. Thank you. Leah.
Nathan:
Oh, I see it now. Oh, okay. nice.
James:
Yeah. Just wanted to go back to the water rehab. I guess it's, 7756. And just if you could summarize that for me, we have 500,000. You said that's probably excessive for next year.
Nathan:
Yeah, there's just a lot of unknowns in that one.
So for next year that's going to cover, design or final design. CDPHE review. Which is the state review process and the pilot test. So basically the miniature water treatment plant we're going to build with the media that we want to use. And, and then all of the, all of the water quality sampling that we need to do and then, preparing through the bid process.
So I guess. Right, that'll get us up to ready to ready to bid. And so that that 500,000 was the number that Kennedy Jenks came up with.
James:
All right. And then just to put it together, 2025 year estimating 1.4 to actually do the changeover. Let me, I may have forgotten, you know, assuming everything goes perfectly.
Nathan:
Yeah. Let me I can, if you guys want to roll a little bit, I can get that for you really quick.
James:
Yeah, it's just talking in round numbers just to repeat what you said, because I kind of missed a part of it, that's all.
Nathan:
Yeah. I can't remember if it was 1.4 or 1.14.
I have that right here, though.
Jason:
While, you're looking at up, The process to rehab will be complete by the end of this year or by the end of 2024. Right.
Nathan:
Process the process tank program. so that's one. I actually had a meeting on that today. Thank you for reminding me. I need to adjust that one.
It's not going to be complete by the end of this year And so the where is that?
Jason:
7757 right below the filter?
Nathan:
yeah. So they're, they're going to give me, they being Glacier Construction, the guys that have the contract, they're going to give me their projected payables for 2024, 2023, and then we'll deduct that from the 2024 budget.
So that one's going to come down by however much we pay in 2023. And then the actual final completion date on that one was originally, the second week in January. We're now looking at the third week in February because we're having trouble. Co Blanco is there subcontractor that's doing the epoxy coating. they are having trouble getting the actual epoxy here.
And so it's going to delay that timeline a little bit. so that 900,000 for 2024 will come down probably at least a couple hundred grand and then it's over .. yep. and then it's over. Okay, okay.
James:
And, I guess one final question is the re drill is zeroed out.
Nathan:
We're going to we're looking at 2025 for that one. Okay.
James:
Can we get that as a note or asterisk or something. Only because, you know, it was a big line item. And and I know what we did with, Yorkshire, I think we kind of we took some of that money.
We transferred it over. Yeah. Just so we can track things year to year.
Nathan:
Yeah. I will add that. Thank you.
Okay. And then for the water tree. Oh, that one was actually a lot heavy, a lot higher than I thought. I'm glad that I came back to this one. so the total project budget estimate is, 2.3 million. so it will be 2.3 less whatever we spend on, piloting is the current estimate. That has a lot of wag in it right now.
So once we once we get to, once we get through final design, and know what we're actually doing with the filters will be able to dial that one down, a lot. So right now we had it at 2.3. But that number could could change a little, could change a lot. I don't think it's going to get, more expensive than that, but we'll we'll just have to see once we get all of our evaluations done where it's, it's a lot more than just changing the filter media.
We're effectively installing six brand new filters, including the way we clean them. So there's an air scour system rather than, Well, we're going to have a before I get way too technical on you guys. That we're going to be using a cleaning process for them. That's much easier on the, on the media. And the filter won't wear out as fast and cleans them a lot more efficiently.
And so once we have, once we get to the at least to the, the 70% design mark, we'll have a much better understanding of what that project's actually going to cost.
Jason:
All right. Great. Does anybody else have any questions on the Water Enterprise Fund? Good. Let's move on to the wastewater side.
Nathan:
Smells like money.
Leah:
I have a question. What is reimbursable income other than what it sounds like intuitively?
Nathan:
I don't know. City. page 12. 60, 61, 40 to 20. Do you know what? Reverse reimburse of all income is?
I think I think it might get a Sadie you're muted. My guess is that that comes from, largely like, engineering fee, engineering fees and services. So we have like a, a line item out for, you know, in money we pay Kennedy Jenks to do things like inspections on new water lines, inspections on new sewer lines as they go in.
Those are pass through expenses. So the developer has to pay us back for those. That would be my guess, that maybe Sadie's got a, She's unmuted now. I'll let her take over.
Sadie, Community Resource Services of Colorado (CRS):
Thank you. I'm so sorry about that. I would have to believe that. I would agree with Nathan on that. There are no other indications to suggest otherwise at this point.
Nathan:
Yeah. And so that's the we have we've got a couple line items we've got that are reimbursable line item. So there's, we've got some meter, the meter line items and then engineering professional services. We also, you know, we pass through expenses for basically from inspection or from the initial design review for new construction all the way through what it costs us to have that updated into our GIS system when we get the As-built a couple of years later.
So those are all pass through expenses. So they they go out on one line, one a line item and come back in on another one. which city? So we should probably, we can get with, Phyllis on that one to make sure we're accounting for that properly. But if we've got the 4320.... Yeah, if we've got the money, then on on page 13, six, 51, 65, about a third of the way down.
Leah:
Yes. That's what I was just going to,
Nathan:
That should have my guess would be an equivalent amount going out to the income. So I think we'll probably. And Susan will also know how that one works. So I think if you you, Phyllis, Susan and I look at it, we can get that dialed down. Got it.
Leah:
Apologies if this is like a remedial question, but, some of the line items, like the director compensation like that was a line item from a different fund.
So do we, like, pull from different funds or? 65/35.
Nathan:
That's the split. So we've got that one exists inside of
Leah:
65/35 split okay. Yeah I was looking for the number and I'm like we're on different pages.
Jason off-mic:
I'm asking that in compliance.
Nathan:
Yeah. The we have a separate spreadsheet that shows those line items that are split across.
Leah:
Thank you. Now it makes sense catching up okay. Because I was like there's seem to be some duplicate expenses but the amounts are different. That's why okay.
Jason:
Nathan on, since we're under there, 5147, the operation staffing contract. Who is that? Semocor. Okay.
Nathan:
And so that's, pointing that one out so that there's not actually a reduction in that contract. It was a 5o. We did it as a 50/50 split last year. And so now if it gets reallocated to that 65/35. So the, and they did have a small increase for this year. But yeah, that's the amount that was taken off of 2024.
And this fund shows up in the other one. Yea Jason I like more and more on the idea of this extra column on here. I'm sure I'm sure Phyllis or Sadie can run some sort of magical Excel spreadsheet calculation on them....
Leah:
Well, I agree about the the, it is hard when they're split because then it's like, what's the total amount?
Nathan:
Yeah, I think that's great. I do, I like just a total expenditure column would be awesome. And I think that's a matter of just linking the cells on those two sheets. I could actually probably do that, but well, I won't do that on Phyllis version though because she'll get mad. So we need to keep Phyllis happy and I will destroy equations.
Jason:
I don't have any other questions on page 13. Does anybody else?
Let's move on to page 14.
Leah:
So I'm just these are just a few that jumped out, but the, 5360, that's quite a jump. And then is the 5370. No, sorry, the 5400. Is that quite a jump just because of our spills?
Nathan:
I need to go back and look at, an inspection, repair and maintenance. Emergency treatment chemical. Give me one second here.
We did move around some funds. I can go back and look at what the total is. We're not, with the exception of that main line and inspection, cleaning that that one, the 2023 budget was, was an oversight. The 2023 budget that that 45,000 should have been closer to that $86,000 mark. And then the 2023 estimated, we just had it from Phyllis and Sadie's perspective, just looking at the numbers when we're coming up
like the last three months of the year, it looked like we were going to hit that. so that was definitely an oversight in the way that that was accounted for previously. That should have been closer to that $85,000 one. We do our cleaning and inspection last three months of the year usually. So they're just now finishing that up.
And so we're going to have about 80 I think it was like $87,000. I got the bill for that one for the 2024 proposed. The reason that that one has such a huge jump over that, that $87,000 one is it's 80 or whatever it is to the 2024, $150,000 is we've had a ton of stuff come out of warranty.
So all so all of the main lines in Lagae we haven't had to do anything with as those developments come out of warranty, we have to add them to our cleaning plan. So we brought all of that in, and then we actually redid our cleaning plan to do the entire district, a third of it every year.
And so, to, to level that out. And then we also added the, Happy Canyon outfall came out of warranty. So we have to do the line from Happy Canyon and like all the way down to where that one got added. And then we, historically have haven't had the Daniels Park outfall, on that one either.
And so that got added, but there was a significant amount of pipe that got put in on that one.
Jana:
How long our warranty periods.
Nathan:
Two years. Yep. Two years from two years from final acceptance at the end of the punch list, which can we can push that stuff out quite a ways because guys don't like to do punch lists.
Jason:
Are we going to be inheriting a lot more of the future?
Nathan:
Maybe not and so this is, actually something that just came up in the last couple of weeks. So, we're going to hopefully have a really cool demonstration for you guys. But, there is a new technology. So the way that we the way that we do these things now and the way that we've done them forever in a day, is we physically jet and clean
Absolutely every main. And then we run a camera down all of them. There is a new tech that is sound based, and so you can just go drop receivers into manholes and then they acoustically look for blockages. It's a third of the cost. It's absolutely amazing. So we're going to implement it starting in 2024. So in for 2024 we're not going to do a third of the district.
We're going to do all of it. We're going to do 100% of the district with that sound base. And what so what that'll what that'll. And for the same cost as doing a third of it. I already verified with our insurance company, and the state that they're both on board with it. It's approved by both.
So we're we're good to go ahead. The reason we want to do 100% of the district all at once is it will give us hotspots that we need to look at. So if there are areas that do need frequent cleaning, so we'll do all of the district this year. We'll know if there are any areas that we need to clean more frequently, and then we'll go back to doing a third of the district, in 2025 at a third of the cost, so that $150,000 could come down to $50,000 a year
plus whatever the cleaning is. there's also a line item that got added. If you go back to the to to to do if I can find a whole lot maybe on that page. yep. It's on.
Jason:
What was to say while you're looking for that, I had a question.
Nathan:
Oh, yeah. So I found it real quick.
So I'm still on page 14. The, professional services assets assessment, conditioning condition assessment. That's right near the top. It's all access. We don't have account codes for it yet. We're going to in conjunction with doing this technology, we're going to do manhole condition assessments on all of our manholes, which is something that we've never done before
and then it's it uses a lot of the same technology, which is really, really cool. And then it actually has a 360 degree like VR recording. And so you, like, put on an Oculus and drop into the manhole and you can physically see the inside of the manhole. We did demo on one a couple weeks ago, and it was absolutely incredible.
So they'll do the manhole condition assessment. We're not going to we're not going to use that camera on all of them because it's like 40 bucks a manhole, post, as opposed to, like, doing $25 just for the condition assessment. But anything that is that either, it's kind of like a, like, good. Okay, bad, like just a three very simple three level rating system.
Anything that is bad or needs attention. We'll do videos on those so that we can build that into a capital project to fix a bunch of them if we need to. And so we'll do that extra $60,000 will be a one time this year only. We won't need to, We only need to carry that one forward.
And then all of that is hopefully setting us up for being able to drastically reduce those costs on an annual basis beginning of 2025.
Jason:
Does the sound detect plaque or just blockages?
Nathan:
Just blockages. and so or, you know, not not full blockages, but even, you know, partial blockages too. So they'll, they'll find areas that may need that because we've been so consistent with our cleaning program.
We have CCTV, CCTV footage of everything in the district. So we know a lot of our problem areas already. Yeah. And so that's why that's why we're able to do that is because we have done the cleaning and inspection. So, so diligently. It's one thing we were actually good at for the past few years.
Jason:
Well, thank you for that. there's anybody else have any questions on the, wastewater enterprise fund?
All right. We can move on to the storm drainage fund, which gets passed over to the city.
Nathan:
Yes. Storm drainage. We we stopped collecting revenues, I think in March or April. March or April. The city started collecting in July. That one's off the books.
Jason:
Does anybody have any other general, budget, questions?
All right, well, I guess that concludes our, study session for the evening. So I will adjourn the meeting.