Stonegate Village Metropolitan District
(“SVMD”)
Community Meeting
Options Going Forward
July 27, 2011
Tonight’s Presentation• Purpose
– Describe the Inclusion Process– Present the Proposed Ballot Question– Review the Board’s Study Information– Discuss the 2 Options and the pros/cons of
each– Inform you of the facts as best we know them
• So that you have the information to make an informed decision
Rules of Participation
• Civility and respect for all participating
• Commitment to the meeting purposes
• Interruptions not permitted except by facilitator
• Questions will be written on index card provided to facilitator during presentation
• Questions will be answered following the presentation
What’s Next?• July 27, 2011 -- Community Meeting • August 1, 2011 -- Community Advisory Group applications due and
members notified.– Thursday August 4th, 6-9 pm,– Tuesday August 9th, 6-9 pm,– Thursday August 11th, 6-9 pm,– Tuesday August 16th, 6-9 pm,– Tuesday August 23 community meeting
• August 11, 2011 – PWSD Public Hearing and Consideration• August 23, 2011 -- Present Findings at Community Meeting• TBD – SVMD Special Meeting for possible action• September 2, 2011 -- Last date to certify a ballot question for a
November election
Ballot question for SVMD Service Area currently under consideration:
“Should SVMD include in Parker Water”
• IF YES:– Parker Water serves entire SVMD Service Area
• IF NO:– SVMD continues water/wastewater service to entire
SVMD Service Area (SVMD, LPMD, Compark & Dove Ridge)
Actions to date by SVMD Board• Resolution to proceed to a vote on inclusion
– Passed 5 - 0 (February 16)
• Resolution to support affirmative vote on inclusion– Failed 3 - 2 (June 15)
• Board Member proposal to Cease Negotiations with Parker Water (“PWSD”) - Tabled to August Meeting
• Board Member proposal to reconsider support of affirmative vote on inclusion- Tabled to August Meeting
What is SVMD?
• C.R.S. Title 32 Special District• Formed on July 20, 1983• Provides water, wastewater and parks and
recreation services• Funded through fees and property taxes
(mill levy)• Board of Directors (5 person board of
property owners)• Managed by Contract (Mulhern MRE, Inc.)
SVMD Service Area
• SVMD Boundaries
• Outside Service Contracts
- Compark Business Campus Metro District
- E-470 Potomac (Dove Ridge)
- Lincoln Park Metro District
Water Supply
• Deep Ground Water (non-renewing)
• Reuse of Treated Wastewater Effluent
Water Treatment and Distribution
• Deep Groundwater Wells
• Water Treatment Plant
• Storage Tanks
• Potable Distribution System
Wastewater Collection and Treatment
• Wastewater Collection System
• Wastewater Treatment Plant
• Treated Effluent Storage
• Non-potable Water Distribution
Parks and Recreation
• Greenbelts and Parks– Maintenance– Improvements
• Pool– Operations & Maintenance– Improvements
• Community Center– Scheduling– Upkeep– Improvements
Major Issues
1. Renewable Water Supply
2. Wastewater Treatment Plant
3. Cost of Service
Issue 1- Water Supply
• South Metro Water Supply Study (2003)“Deep Groundwater Likely Not Viable as long term
supply”
• Those relying on Ground Water should:– Conserve use of existing supplies– Reuse to the extent feasible– Develop local renewable supplies– Participate in the import of renewable water
Why do we need Renewable Water?
Ground Water Pumping – Early SVMD Development
600
ft3 0
0 ft
regional head
Ground Water Pumping – Today’s Conditions
50 f
t3 0
0 ft
regional head
SVMD Renewable Water Actions
• Participated with 15 others South Metro in the SMWSA– Pursued possible water import projects
• Established water conservation plan
• Reduced common area watering
• Initiated Renewable Water Fund
• Purchased storage in Rueter Hess
• This fall consideration of purchase of initial component of renewable water (
Issue 2 - Wastewater Treatment
• Treatment Plant constructed in 1984, expansions (1994 and 2001)
• Treatment Violations occurred in 2007 – 08
• Study Indicates need for an Extensive Upgrade
• Upgrades need to be soon (costly)
Issue 3 – Cost of Service
• South Metro Water Rates high in general (SVMD included)
• Current Mill Levy substantial
(SVMD: 27.4, LPMD: 50, Compark: 45.4, Dove Ridge: 47.7)
• Customers express rate concerns
• Increases coming (rates & mills)
District Board Investigates
• How to approach future most efficiently and cost effectively
• What are the available options for:– Water Supply– Wastewater Treatment– Financing
Two Primary Options
• Continue as SVMD
• Include in Parker Water and Sanitation District (PWSD)
Continue as SVMD
• Purchase initial increment of renewable water import through WISE (Aurora and Denver Water)
• Fund additional water delivery infrastructure
• Pursue additional renewable water over time
• Fund/construct wastewater treatment upgrades
• Finance through reserves, rates and mill levy
Include in Parker Water and Sanitation District
• SVMD gains a share of existing PWSD renewable water
• PWSD participates in further renewable water import (includes water for SVMD)
• SVMD gains a share in existing PWSD wastewater treatment facilities
• PWSD increases wastewater capacity with growth (includes SVMD)
• PWSD finances future improvements (with rates and mills from all customers)
SVMD Board Studies Options• Costs and Benefits of a Proposed
Regionalized Water and Wastewater Utility (by StepWise Utility Advisors)
• Forecasted Statement of Sources and Uses of Cash (by Simmons & Wheeler, P.C. Certified Public Accountants)
• Stonegate Village Metropolitan District Inclusion Analysis Peer Review
(by SAIC Energy, Environmental & Infrastructure, LLC)
Study Limitations
• Best Current Assumptions for the Future
• Financial Information provided by the Districts
• Property Tax Valuations today
• Assumes inflation factor
• Uses existing capital plans, master plans
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $41.27 $33.12 - -2012 $44.57 $36.37 $33.12 -25.69%2015 $56.15 $44.71 $35.18 -37.35%2020 $82.50 $52.70 $40.91 -50.41%
Water Bill Alone Based on Winter AverageBased on 3,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $44.49 $37.76 - -2012 $48.05 $41.46 $37.76 -21.42%2015 $60.52 $50.97 $40.11 -33.72%2020 $88.93 $60.06 $46.64 -47.55%
Water Bill Alone Based on Winter AverageBased on 5,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $52.00 $44.72 - -2012 $56.16 $49.10 $44.72 -20.37%2015 $70.74 $60.37 $47.50 -32.85%2020 $103.94 $71.14 $55.22 -46.87%
Water Bill Alone Based on Winter AverageBased on 8,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $85.25 $75.61 - -2012 $92.07 $83.02 $75.61 -17.88%2015 $115.99 $102.08 $80.32 -30.75%
Water Bill Alone for the Summer MonthsBased on 17,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $26.03 $32.62 - -2012 $32.88 $32.62 $32.62 -0.79%2015 $53.23 $32.62 $32.62 -38.72%2020 $62.58 $32.62 $32.62 -47.87%
Sewer Bill Alone Based on Winter AverageBased on 3,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $29.09 $48.62 - -2012 $36.75 $48.62 $48.62 32.30%2015 $59.49 $48.62 $48.62 -18.27%2020 $69.94 $48.62 $48.62 -30.48%
Sewer Bill Alone Based on Winter AverageBased on 5,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $33.68 $72.62 - -2012 $42.55 $72.62 $72.62 70.67%2015 $68.87 $72.62 $72.62 5.45%2020 $80.99 $72.62 $72.62 -10.33%
Sewer Bill Alone Based on Winter AverageBased on 8,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $67.30 $65.74 - -2012 $77.45 $68.99 $65.74 -15.12%2015 $109.38 $77.33 $67.80 -38.01%2020 $145.08 $85.32 $73.53 -49.32%
Combined Water & Sewer Bill for the Winter MonthsBased on 3,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $73.58 $86.38 - -2012 $84.80 $90.08 $86.38 1.86%2015 $120.01 $99.59 $88.73 -26.06%2020 $158.87 $108.68 $95.26 -40.04%
Combined Water & Sewer Bill for the Winter MonthsBased on 5,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference
2011 $85.68 $117.34 - -2012 $98.71 $121.72 $117.34 18.87%2015 $139.61 $132.99 $120.12 -13.96%2020 $184.93 $143.76 $127.84 -30.87%
Combined Water & Sewer Bill for the Winter MonthsBased on 8,000 gallons usage per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $111.28 $108.23 - -2012 $124.95 $115.64 $108.23 -13.38%2015 $169.22 $134.70 $112.94 -33.26%2020 $233.00 $152.93 $126.02 -45.91%
Combined Water & Sewer Bill for the Summer MonthsBased on 3,000 gallons usage with 17,000 gallons of water use per month
Bill Comparison
YEAR SVMD Alone PWSD Alone Consolidated Cost Difference2011 $145.43 $152.13 - -2012 $162.40 $162.27 $152.13 -6.32%2015 $217.77 $188.36 $158.57 -27.18%2020 $302.51 $213.30 $176.48 -41.66%
Combined Water & Sewer Bill for the Summer MonthsBased on 5,000 gallons usage with 23,000 gallons of water use per month
Property Tax Comparison
Year 2011 2012 2015 2020
Stonegate Village 27.402 31.402 31.402 31.402
For Residents of Stonegate Village Metropolitan District
Projected Mill Levies
Stand Alone
Year 2011 2012 2015 2020
Stonegate Village - 17.602 17.602 17.602
Parker Water & San - 11.200 10.700 10.000
Total - 28.802 28.302 27.602
Mill Levy increase - decrease - 2.600 3.100 3.800
Included with Parker Water & Sanitation
Projected Mill Levies
Property Tax Comparison
Year 2011 2012 2015 2020
Stonegate Village $756 $875 $901 $947
Property Taxes Paid
For Residents of Stonegate Village Metropolitan District
Stand Alone
Year 2011 2012 2015 2020
Stonegate Village - $490 $505 $531
Parker Water & San - $312 $307 $302
Total - $802 $812 $833
Property Tax increase - decrease - $73 $89 $114
Property Taxes Paid
Included with Parker Water & Sanitation
Property Tax Comparison
Year 2011 2012 2015 2020
Lincoln Park $1,379 $1,393 $1,435 $1,508
Stand Alone
Property Taxes PaidFor Residents of Lincoln Park Metropolitan District
Year 2011 2012 2015 2020
Lincoln Park - $1,393 $1,435 $1,508
Parker Water & San - $312 $307 $302
Total - $1,705 $1,742 $1,810
Property Tax increase - decrease - $312 $307 $302
Property Taxes Paid
Included with Parker Water & Sanitation
Property Tax Comparison
Year 2011 2012 2015 2020
E470 Potomac $1,262 $1,274 $1,313 $1,380
Property Taxes PaidFor Residents of E470 Potomac Metropolitan District
Stand Alone
Year 2011 2012 2015 2020
E470 Potomac - $1,274 $1,313 $1,380
Parker Water & San - $312 $307 $302
Total - $1,586 $1,620 $1,681
Property Tax increase - decrease - $312 $307 $302
Property Taxes Paid
Included with Parker Water & Sanitation
Property Tax Comparison
Year 2011 2012 2015 2020
Compark 2,443 2,467 2,542 2,672
Property Taxes PaidProperty Owners in Compark Business Campus MD
Stand Alone
Year 2011 2012 2015 2020
Compark - $2,467 $2,542 $2,672
Parker Water & San - $609 $599 $589
Total - $3,076 $3,142 $3,261
Property Tax increase - decrease - $609 $599 $589
Included with Parker Water & Sanitation
PWSD and SVMD Debt• PWSD debt
– Total Debt (12/31/10) $215,288,309– Est. Debt per residence $13,000– Debt to Assessed Value Ratio 0.43
• SVMD debt– Water/Sewer debt (Debt 12/31/10) $18,000,000– Est. Debt per residence initially $6,900– Est. Debt per residence in 2015 $16,000– Debt to Assessed Value Ratio initially 0.23
• Combined Debt after inclusion– PWSD $210,915,654– SVMD $11,100,000– Est. Debt per residence $11,600
Pros for SVMD Intact
• Maintains greater degree of local decision making (debt, rates, contracts, etc.)
• Less water/sewer debt per residence initially
• Larger sewer users pay about 20% more for sewer in 2012 and 2013
• SVMD Board decides cost saving measures
• More oversight of day to day operations
Pros for Inclusion in Parker Water
• Lower future costs
• Takes advantage of cost efficiencies of scale in water and sewer industry
• Increases options available for renewable import projects because of purchasing power
• Gains share of Parker Water’s water and wastewater assets (potential sale of RH storage)
Terms of the Proposed Inclusion
• PWSD owns and operates SVMD system• PWSD funds lift station/pipeline for sewer• PWSD acquires SVMD Rueter Hess Storage in
exchange for irrigation water over 20 years• SVMD shares in all PWSD assets (including
Rueter Hess)• SVMD pays down debt• SVMD pays PWSD rates and mills and their own
reduced mill
How does this work?• Parker Water can serve SVMD with existing
infrastructure• Parker Water can serve SVMD with low marginal costs
of service• Parker Water has invested in major renewable
infrastructure like Rueter Hess, a Water Plant, and renewable water
• SVMD pays portion of Parker Water general obligation debt
• SVMD pays portion of Parker Water revenue debt• SVMD receives services plus renewable water assets
plus wastewater treatment capacity for their contributions• Everyone benefits from cost efficiencies of scale going
forward