Castle Pines North WC Plan2007

• Project Type: Water Conservation Plan
• Applicant: Castle Pines North Metropolitan District
• Project Name: Water Conservation Plan
• Title: Castle Pines North Metropolitan District Water Conservation Plan
• Date: 8/1/2006
• County: Douglas
• Water Conservation - Doc Type: Complete Plan

CDM

Section 2
Profile of Existing Water System

2.4 Characterize Water Costs and Pricing

Figure 2-3 provides the District's revenue history from 1998 to 2005. In 2005, water
rates were increased for the first time since 1997 and will increase again in 2006. These
rate increases are intended to generate revenue for operation and maintenance costs
as well as fund studies for the acquisition of renewable surface water supplies.

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$2,500,000
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D Water Service. Sewer Service D Storm Drainage

* Historical revenue data was derived from annual budgets. Sewer and storm drain are added
together for 1998.

Figure 2-3
Historical Revenue

Billing System

Prior to 2004, the District used a fixed fee plus a four-tiered increasing block rate
structure where after a specified amount of water use is exceeded, the rate per
thousand gallons increases.

A new system was implemented in 2004. This system also incorporates a four-tiered
increasing block rate structure and includes a water budget for each customer based
upon actual lot size. Water budgets have been calculated for each customer type
(residential and non-residential) based on a reasonable amount of usage needed to
meet both indoor and outdoor needs. The water rate (unit price per thousand gallons)
a customer pays remains fixed until usage exceeds the budget. Water rates are the
same for all customer types (water budgets differ per customer). As shown in
Table 2-7, the increase in unit price depends on the percentage by which each
customer exceeds their water budget. The District has approved a 12 percent rate
hike. These will be implemented on April 1, 2006.

2-8

O:\Castle_Pines_North\Conservation Plan\Drafts Submitted For Review\Final Conservation Plan.doc