FAQ

The questions and answers below were developed in response to questions from taxpayers and ratepayers within the District.  

If you have a questions not covered here, please try locating the answer on one of the pages on this site, or send an email to an appropriate contact. Most pages have a "FOR MORE INFORMATION:" email link to District Board members or appropriate staff.

• What are the current rates charged to customers for water use?
• Why are customers who are outside the District now charged a higher monthly System Base Charge?
• Why were the rates and fees increased?
• What are the typical operating expenses for EAWSD?
• How many employees does EAWSD have?
• How are the property taxes paid to the District determined?
• What does the utility system include?
• How much water supply does EAWSD have?
• How much water is being pumped from the aquifers and used?
• Does EAWSD have adequate water rights for the water being pumped?
• Is there enough water to meet the needs of the Eldorado area?
• What about future growth? And what must developers do to join the utility?
• What about adjoining areas to be developed, such as Commonweal, joining the EAWSD utility?

What are the current rates charged to customers for water use?

EAWSD uses a tiered water rate structure (i.e., customers who use more water pay more for it per 1,000 gallons) in order to encourage conservation.

Click here to see the current rate structure.

Page last updated 6/3/2009

Why are customers who are outside the District now charged a higher monthly System Base Charge?

Out-of-District customers are now charged a higher base rate to ensure equity with customers who are inside the District and pay property taxes (which are used to retire the General Obligation bonds which were used to purchase approximately 63% [about $7M] 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.

Page last updated 6/16/2009

Why were the rates and fees increased?

By law, the District must operate with a balanced budget. Rates and fees must cover the District's Operating Expenses, including the debt service for the Revenue bonds used to purchase 37% of the utility, as well as ensure that the system is maintained and improved.  Previous budgets had little funding left for Capital Improvement Projects (CIPs) and over time the ability to cover Operating Expenses was also eroded (owing to increased costs, inflation, etc.).

While some CIP funding in the past has been obtained from State Grants via the Legislature and Governor, the amounts are always less than needed to correct system deficiencies and upgrade system components, and are not consistent in quantity each year. Further, most grants require some matching funds from the District.  ($400,000 was received from State Grants in 2005; $200,000 in 2006; $500,000 in 2007; $50,000 in 2008; and zero in 2009).

A portion of the rates and fees increase will fund critical CIPs - projected to be $200,000 to $600,000 per year, depending on water sales and other fees.

Note.  The last rate increase was in 2001, prior to EAWSD purchasing the utility.

Page last updated 6/16/2009

What are the typical operating expenses for EAWSD?

Operating Expenses in the fiscal year ending 6/30/10 (FY2010) are projected to be $ 2,054,646, without principal payments on the Revenue Bonds and General Obligation Bonds.  

Budget components include:

Salaries, wages, & benefits  --   $ 218,182
Travel  -- $ 2,650
Contractual Services (OMI, legal, et al.) --  $1,249,505
Supplies  --  $ 14,941
Operating Costs (power, etc) --  $ 177,079
Engineering services or project management --  $ 75,000
Scheduled maintenance -- $ 31,775
Utility repairs -- $  150,000
Capital projects  --  $ 135,514

To see the full FY2010 budget, click here.

Page last updated 6/16/2009

How many employees does EAWSD have?

The District has one employee -- our General Manager, who joined the District in December 2009. Currently, the District has retained two part-time contractors (Financial Coordinator and Administrative Assistant).

Under the terms of the contract with the Operating and Maintenance Contractor, CH2M HILL OMI, the contractor provides seven employees.

The fiscal year plan for 2009-10 is to add up to three full time employees-- a General Manager, a Project Manager and an Administrative Assistant/office manager.

Board Members are not compensated for their time.

Page last updated 6/16/2009

How are the property taxes paid to the District determined?

The property tax revenue requirement is determined by the District as part of its annual budgeting process. The corresponding mil rate for the property tax levy is stipulated by the District and both the revenue requirement and the stipulated rate are reviewed by the New Mexico Department of Finance & Administration (NM DFA). NM DFA may adjust the revenue requirement (the “yield”) or the mil rate before it sends the final figures to the Santa Fe County Assessor’s office. The Assessor’s office is responsible for collecting the tax and remitting it to local government entities, including the District. The Assessor's office retains 1% of the gross amount collected as an administrative fee.

The current mil levy is $3.36 per $1,000 of assessed value. As an example, a property having a full value of $300,000 and assessed at $100,000 (1/3 of full value) would incur a District tax of $3.36 x 100 = $336 per year.

The projected property tax revenue for FY 2010 is $811,050.

Page last updated 7/6/2009

What does the utility system include?

System components include:

• 6 storage tanks, with 2.5 million gallons maximum capacity, typically operated at 90% full
• 15 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 9 pressure reducing valve stations
• More than 500 fire hydrants
• Computerized monitoring and control system (SCADA), connected by telemetry to the computer in key locations for the 'on-call' operator at nights and on week-ends
• 3 rented or leased facilities: an Administrative Office, OMI office, and storage & equipment yard

Page last updated 6/16/2009

How much water supply does EAWSD have?

All water supplied to the EAWSD system is from wells. There are 15 wells in the system, of which 4 are 'major' producers (above 100 gpm), 6 are 'moderate' producers (20 to 100 gpm), 3 are 'minor' producers (less than 20 gpm), and 2 are non-producers and are not used. One major well drilled in 2007 awaits final permits for permanent use.

For more information about the wells, click here.

EAWSD is currently planning a new Well "A" to increase pumping capacity; it will be 1-2 years before this well is completed and permitted.

Page last updated 6/16/2009

How much water is being pumped from the aquifers and used?

In 2005, 186 million gallons (Mgal/yr or 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 approximately 150 Mgal/yr rates. The 10 to 25 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 range between 10% and 15%, which is below the typical range for systems of this size in New Mexico.  

Currently, without new Well #17, EAWSD has 620 kgal/day sustained pumping capacity, with less than 15 kgal/day of backup (emergency reserve) capacity. With new Well #17, via a temporary OSE permit for summer operation when tank levels cannot be maintained, the managed, sustained pumping capacity is 710 kgal/day, which is minimally adequate for all but the hottest days of summer. However, good operating practice of managing wells to allow routine and regular periods of ‘rest and recovery’ would indicate that EAWSD should have approximately 700 kgal/day basic sustained capacity with approximately 150 kgal/day of sustained reserve capacity for equipment malfunctions, low or no runoff in the Galisteo Creek alluvium, and other emergencies. The immediate requirement for the system is to add additional pumping capacity.

Page last updated 6/16/2009

Does EAWSD have adequate water rights for the water being pumped?

EAWSD, and its ratepayer-taxpayer-owners, have more than 783 acre-feet of vested water rights, which is more than the 530-600 afy of water being pumped .

Page last updated 6/16/2009

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 was reassessed in an updated hydrology study and groundwater model via a contract with Glorieta Geoscience, Inc. (GGI), in June, 2007. The results of that reassessment were that there exists a 100 year supply of groundwater. The study also included recommendations on the number of new wells that would be required to meet future demand.

Page last updated 6/16/2009

What about future growth? And what must developers do to join the utility?

Land use requirements, and, thus, growth are regulated by Santa Fe 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. By law, the District must provide water service within its designated boundaries. 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 transferred to 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.

Page last updated 6/16/2009

What about adjoining areas to be developed, such as Commonweal, joining the EAWSD utility?

As required and promoted by the New Mexico 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 discussed the possibility of the Galisteo Basin Preserve development joining 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. Alternatively, Commonweal may consider contracting with the District to operate and maintain their system, providing water only under specified conditions. No agreement has occurred.

Page last updated 6/16/2009