Denver Water forecasts water-sales revenue $14.7 million below budget

Denver Water forecasts water-sales revenue will come in $14.69 million below budget this year, while total revenue is projected $2.042 million above budget. The estimates are in the utility’s August financial report, included in the Sept. 23 Board of Water Commissioners agenda packet. They are forecasts, not final results.

The report projects $490.528 million in total revenue against a $488.486 million budget. Interest income is forecast $6.566 million above budget, which the report attributes to a higher cash balance in the first half of the year and favorable interest rates. Other revenue is projected $5.426 million above budget, including a roughly $5.9 million favorable variance tied to the timing of a legal settlement. System development charge revenue is forecast $3.908 million above budget, primarily because of a new large-volume user and a mixed-use family development.

Excluding the legal settlement, Denver Water forecasts revenue $3.878 million below budget. The report says anticipated drought-related revenue impacts are incorporated into its water-sales forecast but does not break out their share of the projected sales shortfall. A billed-consumption chart shows 44.2 billion gallons year to date, compared with 45.5 billion budgeted; the report cautions that billing cycles may not align with calendar months.

Capital spending is forecast at $298.813 million, $19.747 million, or 7.1%, above the $279.066 million budget. The report’s largest listed project-level over-budget variances include $9.2 million for Hazeltine Pump Station, $8.1 million for Gross Reservoir and $7.5 million for Marston Disinfection Improvements and Electrical. These are forecast variances, not total project costs.

Overall uses of funds are forecast at $848.408 million, $14.685 million above budget, while operating costs are projected $5.464 million under budget.