CAPITAL IMPROVEMENTS PROJECTS FUND

Project Updates

Lake Arbor Restoration

Lake Arbor is a 40-acre lake located in Lake Arbor Park northeast of 80th and Pierce. Over time, wave action had eroded away most of the lake shoreline, threatening the safety and integrity of adjacent park trails and diminishing the ecological habitat and aesthetics around the park. In addition, sediment deposition within the northwest pond, also known as the forebay, had led to a reduction in water quality and increase in unpleasant odors and algae blooms within the lake. In winter 2022, the City—in partnership with Consor Engineering, the Mile High Flood District (MHFD), and Naranjo Civil Constructors—completed final design plans for improvements to address the various issues at the lake. Construction then kicked off in February 2023.

With assistance from Colorado Parks and Wildlife, thousands of fish were relocated from the lake prior to the project to reduce impacts to the existing population. Additionally, the construction crew took extra precautions to protect and relocate any aquatic wildlife encountered during the work, including species of painted turtles and snapping turtles.

The project improvements include a buried riprap and vegetated shoreline, additional lake aerators for increased oxygen production, dredging of accumulated sediment and other contaminated materials in the lake bottom, new storm infrastructure, repairs to the concrete spillway, and additional irrigation around the park.

Despite an unprecedented rainy spring and summer that brought about some weather delays, construction progress has been on track and is slated to be complete by mid- to late-August 2023. Final landscape and irrigation installations will then finish up in the fall.

The improvements will restore this beloved community lake to a more resilient condition and bring back the beauty and recreational benefits that so many people have enjoyed over the years.

Water Fund Overview

The Water Fund accounts for all activities within the scope of the water utility operations including administration, operations, capital water projects, financing and related debt service and billing and collection.

Revenue Highlights

• Water Charges revenue has increased as a result of the new water consumption rate and the new bi-monthly water service fee despite the wet weather.

• System Development Charges revenue increased due to large new construction projects. The timing of new construction projects, are not consistent from yearto-year so System Development Charges revenue vary.

Expenditure Highlights

• The Major Capital Maintenance expenditures increased because of the Water Meter Replacement project.

• Capital expenditures increased due to a payment for the Gross Reservoir expansion project occurring in the 1st quarter of 2023 and not a corresponding payment in 2022.

*$27,057,600 of the Fund Balance is a cash escrow reserved in Denver Water’s name and related to the Gross Reservoir expansion. The Water Fund’s overall obligation is expected to total $120 million through 2026 .

Wastewater Fund

Overview

The Wastewater Fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater.

Revenue Highlights

• Sewer Charges revenue and System Development Charges revenue increased due to the new wastewater rate, the new bi-monthly service fee and some large construction projects.

• Other revenue decreased due to a retainage fee being paid in 2022 from Jefferson Center Metropolitan District (JCMD) for the Alkire Lift project and there was not similar revenue in 2023.

Expenditure Highlights

• Major Capital Maintenance expenditures decreased due to the Trenchless Sewer Construction project having activity in 2022 and there were no maintenance projects in 2023.

• Capital expenditures increased because of the Ralston Trunk Sewer Improvement project and the North Trunk Sewer Improvement project in 2023.

Stormwater Fund

Overview

The Stormwater Fund accounts for all activities necessary to maintain a stormwater management plan.

Revenue Highlights

• Stormwater Fee revenue increased slightly due to the new-bi-monthly service fee.

Expenditure Highlights

• Ongoing expenditures increased because of The The Capital expenditures increased due to a large payment for the Lake Arbor Restoration project.

Golf Fund

Overview

The Golf Course Fund accounts for all revenues and expenses of the Lake Arbor and West Woods Golf Courses, including food service operations.

Revenue Highlights

• Overall revenues increased in 2nd quarter 2023 by $729,576 or 22.3% over 2022.

• Golf course revenue increased by 21.12% or $440,584 over 2022 numbers. The rainy weather this spring did not seem to affect revenue or golf rounds played. Golf rounds played increased by 9.2% in the 2nd quarter of 2023 at both courses.

• Restaurant revenue increased as well from 2022, by $250,723 or 24.2%.

Expenditure Highlights

• Overall 2nd quarter expenditures increased by $620,865 or 18.9% over 2022.

• In order to keep up with the higher demand from golf and restaurant customers, expenditures increased in relation to increased revenue. Expenditures are on track with budgeted projections, coming in at 50.8% for half the year.

Golf Rounds by Type - January

Solid Waste Fund

Overview

In 2020, the Arvada City Council approved a new waste and recycling program. The City entered into an agreement with a single trash company to provide waste and recycling collection for residents. The trash and recycling services started in July 2021

Revenue Highlights

• Total Revenue increased from more customers receiving trash and recycling services. There were 489 new customers in the past year.

Expenditure Highlights

• The Operating expenditures decreased due to a one-time purchase in 2022 of replacement parts for the trash and recycling carts.