I served as mayor of Broomfield from 2007 to 2013 and again in 2019 through May of 2021.
I am also a CPA, and during my career I served as the CFO of asset intensive companies. It is one of my core beliefs that it is never fiscally responsible to defer maintenance. So I was taken aback when I read the July 16 Enterprise Fund Staff Report (“Report”) which states that Broomfield had a philosophy of “run to failure” resulting in critical infrastructure maintenance being deferred. Additionally, the city manager was quoted in the Enterprise recently that Broomfield was built in a way that “didn’t have the future in mind.”
When I was first elected mayor, George Di Ciero was city manager, and the department heads and staff were recognized for their professionalism statewide.
The city councils I presided over, George, and staff, all were dedicated to planning for the future, which is why Broomfield was named by Money Magazine as the 18th best place to live in 2020. Over time, Broomfield completed several comprehensive plans going back to the original Master Plan for Broomfield Heights in 1956. Updates to Broomfield Comprehensive Plans include massive citizen outreach, and a blue ribbon “Citizen Task Force” which intentionally includes a group of citizens with a variety of backgrounds and different points of view. Consultants with specific areas of expertise are often used.
Underlying the Comprehensive Plans are more specific subarea, transportation, open space, recreation and three utility master plans: Water, Non-Potable Water and Wastewater. According to the 2016 Comprehensive Plan Update, the three utility master plans were updated as well.
The director of Public Works who is a co-author of the Report has worked in Public Works for over 30 years, being named its director in 2022, and the city manager has worked for Broomfield for 20 years, being named city manager in 2019. If there was a “run to fail” philosophy in public works, it was not the policy of the City Council nor prior city managers. It is also significant that the increase in the operating budget for Public Works, on a per capita basis, has increased greater than inflation over the last 12 years.
The conclusion of the Report is that water, sewer and related fees need to be increased 50% immediately and we need to urgently embark on an intensive capital plan.
There is no doubt in my mind that we need to increase water rates for many of the reasons stated in the staff Report. The last comprehensive review of utility rates was completed in 2012 (“2012 Rate Study”). Based on that study, the council, in 2013, increased water rates by 7%, sewer rates by 13% and adopted a $2 monthly environmental compliance Fee. The recommendations of the 2012 rate study were not followed in subsequent years.
The July 16 staff Report does not mention the $170 million 2021 investment in the Windy Gap “firming” project, Broomfield’s largest Water Fund investment to date. While the intention was for this debt to be repaid by future water and sewer tap fees, that was highly unlikely, and I made my concerns known, at that time, that this investment could materially increase base water fees and that there should have been a public discussion prior to the final approval of that project.
To summarize, I understand that Broomfield needs to increase our utility rates and that Broomfield needs to invest significant sums to upgrade our water and sewer infrastructure. However, there are credibility issues which need to be addressed. Council should scrutinize the Report and consider more robust community outreach than currently planned.
Here are my specific questions for staff:
Is there a formal documented long range financial plan for the Enterprise Funds? Has it been independently reviewed, and is it coordinated with the Long-Range Financial Plan?
How much of the proposed increase in base water rates is attributable to the Windy Gap project which was to be financed by water and sewer tap fees?
How does the recommendations in the Report compare to the three utility master plans which were updated in 2016?
Should the 2012 Rate Study be updated?
I look forward to the discussion.
Patrick Quinn is a Broomfield resident and former mayor.