Eldorado Area Water and Sanitation District

1 Hacienda Loop, Santa Fe, NM 87508, 505-466-2411

FAQ

What are the CURRENT and PROPOSED RATES charged to customers for water use?

Existing Rate structure for RESIDENTIAL customers:

$9.54 monthly System Base Charge;
For 1 to 6,000 gal/mo use, rate is $ 8.091 per thousand gallons;
For 6,001 to 10,000 gal/mo use, rate is $ 9.00 per thousand gallons;
For use Above 10,000 gal/mo, rate is $ 10.094 per thousand gallons.

Proposed new Rate structure for RESIDENTIAL customers, (effective 7/1/07):

$ 15.79 monthly System Base Charge for Residents within the District, or
$ 40.29 monthly System Base Charge for Residents outside the District.
For 1 to 3,000 gal/mo use, rate would be $ 9.00 per thousand gallons;
For 3,001 to 6,000 gal/mo use, rate would be $11.00 per thousand gallons;
For 6,001 to 10,000 gal/mo use, rate would be $13.00 per thousand gallons;
For 10,001 to 20,000 gal/mo use, rate would be $ 17.00 per thousand gallons;
For 20,001 to 30,000 gal/mo use, rate would be $22.00 per thousand gallons;
For use above 30,000 gal/mo, rate would be $ 29.00 per thousand gallons.

Existing Rate structure for COMMERCIAL customers:

$ 9.54 monthly System Base Charge;
For 1 to 18,000 gal/mo use, rate is $ 10.268 per thousand gallons;
For 18,001 to 30,000 gal/mo use, rate is $ 11.422 per thousand gallons;
For use Above 30,000 gal/mo, rate is $ 12.81 per thousand gallons.

Proposed new Rate structure for COMMERCIAL customers (effective 7/1/07):

$ 15.79 monthly system Base Charge for Commercial customers within the District; or
$ 40.29 monthly System Base Charge for Commercial customers outside the District;
For 1 to 10,000 gal/mo use, rate would be $ 12.00 per thousand gallons;
For 10,001 to 30,000 gal/mo, rate would be $19.00 per thousand gallons;
For use Above 30,000 gal/mo, rate would be $ 29.00 per thousand gallons.

Why are customers who are outside the District to be charged a higher monthly System Base Charge in the future?
For fairness with customers who are inside the District and pay property taxes (which are used to retire the GO bonds used to purchase approximately 64% of the utility). Since the utility was purchased, customers outside the District, who do not pay property taxes to the District, have been, in essence, paying less for their water.
Why are the Rates and Fees being increased?
Current rates and fees cover the Operating Expenses, including the debt service for the Revenue bonds used to purchase the utility; but there is little funding left for Capital Improvement Projects (“CIP's”). While some CIP funding is obtained from State Grants via the Legislature and Governor, the amounts are less than needed to correct system deficiencies and upgrade system components, and are not consistent in quantity each year, ($400,000 from State Grants was received in 2005; $200,000 in 2006; and it is reported that EAWSD will receive $500,000 in 2007). The rates and fees are primarily being increased to furnish a basic amount of funds for CIP's - projected to be $600,000 to $1,200,000 per year, depending on water use and other fees.

What are the typical Operating Expenses for EAWSD, exclusive of CIP's?
Operating Expenses in the fiscal year ending 6/30/06 (FY06) were $1,636,000, without principal payments on the Revenue Bonds (which were not required in the first year).

Current Operating Expenses (FY07) are projected to be in the $2,230,000 to $2,490,000 range, which includes expenses for several services which had not been performed for several years and purchases of needed equipment (e.g. tank cleaning, leak detection, Hydrology Study, inspection and cleaning of three wells, emergency generator, dump truck & trailer).

For the upcoming year, FY08 (7/1/07 to 6/30/08), Operating Expenses are projected to be in the $2,100,000 to $2,200,000 range. The DRAFT budget for next year (FY08), which is still being reviewed, by major classifications, and rounded to the nearest thousand dollars, is projected to be:

Salaries, wages, & benefits	$ 203,000	9.4% of Budget
Travel	$ 2,000	0.1%
Contractual Services (OMI, legal, et al)	$1,107,000	51.1%
Supplies	$ 9,000	0.4%
Operating Costs (power, etc)	$ 196,000	9.0%
NM Gross Receipt Taxes	$ 83,000	3.8%
Capital purchases of specific equipment	$ 66,000	3.0%
Revenue Bonds debt service	$ 503,000	23.2%
DRAFT TOTAL OPERATING EXPENSES:	~ $ 2,169,000	100%

How many employees does EAWSD have?
Currently, there are two full-time paid employees: a General Manager and a District Engineer. There are also two part-time contractors (Financial Coordinator and Administrative Assistant) and the Operating and Maintenance Contractor, OMI, has seven employees via its contract with EAWSD. It is expected that one or two more paid employees, possibly as part-time staff, will be added in the next year. Board Members are not paid.
How are the property taxes paid to the District determined?
The mill levy is determined by the County Assessor's office, and is adjusted per the assessed value of the property by the Assessor.
What does the utility system include?
- 6 storage tanks, with 2.5 million gallons maximum capacity, typically operated at 90% full;
- 14 wells in three major aquifer groups, plus 2 observation/monitoring wells;
- More than 110 miles of distribution and transmission lines (4'' and above);
- 4 booster pump stations;
- More than 600 isolation valves, and 5 pressure reducing valve stations;
- More than 500 fire hydrants;
- Computerized monitoring and control system (SCADA), connected by telemetry to the computer in the OMI office (and to the lap top computer and cell phone carried by the 'on-call' operator at nights and on week-ends);
- 3 rented or leased facilities: Administrative Office, OMI office, and storage & equipment yard.

How much water supply does EAWSD have?
All water supplied to the EAWSD system is from wells. There are 14 wells in the system, of which 3 are 'major' producers (above 100 gpm), 6 are 'moderate' producers (20 to 100 gpm), 3 are 'minor' producers (less than 20 gpm), and two are non-producers and are not used. The number of wells and aquifers are;

AQUIFER	NUMBER of WELLS in AQUIFER			DESCRIPTION of AQUIFER
	MAJOR	MODERATE	MINOR
Santa Fe Group	(None)	4	2	Deposits from mountain erosion
Madera Limestone	2	1	1	Cavernous, fractured limestone
Galisteo Creek Allv	1	1	(None)	Alluvial gravel & sand-Seasonal*

(*Note: Production from the Galisteo Creek alluvium is seasonal and depends on runoff. In 2005, ~34% of all water was produced from this aquifer, with less than 1% in 2006.)

EAWSD is currently drilling Well #17 in the fractured Precambrian granite - a new aquifer - which could become a 'major' producing well.

How much water is being pumped from the aquifers and used?
In 2005, 186 million gallons-Mgal/yr- (570 afy) was pumped from the wells and approximately 174 Mgal/yr was used by customers. In 2006, 174 Mgal/yr (533 afy) was pumped and approximately 164 Mgal/yr was used. Currently, water is being pumped at 170 to 180 Mgal/yr rates and used at 160 to 170 Mgal/yr rates. The 10 to12 Mgal/yr difference between pumping volumes and use volumes is the 'unaccounted losses', which includes water lost during fire hydrant flushing and testing, older meters reading 'low', and leaks. Currently, the unaccounted losses are well below 10%, which is below the normal range for systems of this size in NM.

Currently, without Well #9 & 10 in the Galisteo Creek alluvium, EAWSD has 510 gpm pumping capacity, with ~65 gpm of backup (emergency reserve) capacity, which is minimally adequate for all but the hottest days of summer. However, good operating practice would indicate that EAWSD should have approximately 600 gpm basic capacity with 150 to 200 gpm reserve capacity, i.e. a total of 750 to 800 gpm. In years of high runoff with Wells #9 & 10, total pumping capacity is 750 to 800 gpm. The immediate requirement for the system is to add additional pumping capacity without Wells #9 & 10; thus, the drilling of Well #17.
Does EAWSD have adequate water rights for the water being pumped?
EAWSD, and its ratepayer-taxpayer-owners, have more than 818 acre-feet of vested water rights, which is more than the 530-570 afy of water being pumped.
Is there enough water to meet the needs of the Eldorado area?
For the present - Yes. It has been recognized since the Shomaker hydrology report in 2001, that the immediate need is for more wells with increased pumping capacity, and that the long-term needs will likely require the importing of water for a sustainable supply. The groundwater situation is currently being assessed in an updated hydrology study and groundwater model via a contract with Glorieta Geoscience, Inc. (GGI), which should be finished in June, 2007.
What about future growth? And what must developers do to join the utility?
Land use requirements, and, thus, growth are regulated by the County. EAWSD has no land use authority. Growth will likely occur on the southern edges of the Eldorado area. The rate of increase in water demand associated with that growth is of concern to EAWSD and others. EAWSD is working on moderating the increase in demand via conservation, higher water rates, and other measures.

For a developer to bring a development into the utility, four items must be furnished by the developer: a) water in excess of the development's requirements, typically a well acquired by EAWSD; b) water rights, or financial equivalent for EAWSD to acquire additional water rights, equal to the development's requirements; c) payment of fees to connect each lot, or equivalent, to the utility; and d) the infrastructure required to connect the development to the utility.
What about adjoining areas to be developed, such as Commonweal, joining the EAWSD utility?
As required and promoted by the NM Legislature, EAWSD supports the 'regionalization' approach to water systems combining into larger regions. Not only does this allow the professional management of smaller systems, it also furnishes backup capacity during emergencies, such as during fires and droughts.

Commonweal has applied for the Galisteo Basin Preserve development to join the EAWSD system, and EAWSD has stated that it is receptive to that, provided that Commonweal meets all four requirements as with other developers. Commonweal must supply water (in excess of their requirements), water rights or financial equivalent, pay all connecting fees, and furnish all required infrastructure. Specific requirements must still be worked out.

4/23/07