Enterprise Funds Reports and Analyses 2020-2024

Based on recommendations from the Royal Bank of Canada Capital Markets (RBC),  Willdan, and AECOM 

2020/2021

Step One: Secure Water Containment to hold purchased water licenses for build-out based on recommendations from Royal Bank of Canada (RBC) findings 

2021/2022

Step Two: Establish Broomfield Debt Policy and Build from Step 1 Findings

2022/2023

Step Three: Build on Steps One and Two
How much will it cost to get the water? Update the 2012 Rate Study and Implement Rate Increases 

2023/2024

Step Four: Contract with AECOM

Work with AECOM, a third-party consultant, to build on the data from RBC and Willdan and review Broomfield's current infrastructure to perform an asset management gap analysis. This work will be used to develop and create a future-focused comprehensive enterprise fund plan, both short and long-term, to solidify and stabilize CCOB's Enterprise Funds.

2023 AECOM Study

  • Objective: Recognizing the limitations of the 2021 study, CCOB engaged AECOM to conduct a much more detailed analysis. This study was designed to build a comprehensive repository of our assets, assess their state of repair, and integrate the outcomes of the updated Water Master Plan. It also included the pricing of the water treatment facility expansion and the water tanks, which had reached 100% design completion by then.
  • Scope: The AECOM study provided a granular analysis of our infrastructure needs, factoring in the significant inflation that had taken hold and the full scope of upcoming projects. This approach allows CCOB to move forward with a repeatable, data-driven process that can be deployed annually to ensure rates and investments align with the actual needs of the infrastructure.
  • 2023 AECOM Study Executive Summary
  • 2023 AECOM Full Report

July 2024 City Council Study Session

Introduction of the Proposed 2025 Enterprise Fund Plan Recommendations, which was reviewed and confirmed by AECOM.

April 2025 City Council Study Session

First quarterly Enterprise Fund update providing a review of initial 2024 financial results and the latest information on CIP planning.

July 2025 City Council Study Session

Introduction of the Proposed 2026 Enterprise Fund Plan Recommendations on July 15, 2025.

Cost Increases: Initial Estimate vs. Reality

Initial Estimates vs. Reality
The cost estimates presented in earlier studies, such as the $45 million estimate for the water tanks, were based on preliminary designs. As CCOB moved forward, these designs were refined and updated, accounting for factors like inflation, supply chain disruptions, and more detailed project requirements, which led to the higher $93 million estimate.

Factors that have influenced the increase in construction costs include the following items:

  • The cost of deep foundations/drilled piers for the tank, pump station, vaults and generator increased due to the geotechnical investigation's results
  • Additional structural fill is required based on geotechnical investigation 
  • Additional grading and excavation throughout the site, including regarding a new overlook area
  • Excavation costs also increased due to what can be reused vs. what is being hauled away
  • Flexible connections to manholes due to results of the geotechnical investigation 
  • Additional ~2000 LF of 30” buried piping (for the overflow piping) 
  • Additional manholes throughout the project site for increased maintenance and compliance 
  • Two years of escalation in the Colorado Construction Index/Inflation
  • NOTE: The $93 million estimate includes a 10% construction contingency, whereas the $45 million was for tank construction only  

Rate Smoothing
Smoothing the rate increases was intended to make the financial impact on residents as manageable as possible. However, the rapidly changing economic environment and the need for a more comprehensive understanding of the infrastructure revealed that the earlier approach needed to be revised.

Addressing Future Concerns

  • Repeatable Process: With the comprehensive data and methodology provided by AECOM, CCOB now has a foundation that allows for prediction and planning for future needs more accurately. This reduces the likelihood of unexpected increases and ensures that all future recommendations are based on a thorough understanding of our assets and financial requirements.
    • AECOM’s effort focuses on the investments needed to keep water and sewer assets identified by CCOB in a state of good repair, which primarily indicates an asset is operationally meeting its goals and fit for purpose. All unit costs applied are based on current market prices and current specifications. The unit costs addressed ancillary costs beyond the original construction on a straightforward job site. This included removing and replacing labor, maintenance of traffic, more difficult construction, and testing and commissioning.  
  • Ongoing Communication: CCOB is committed to transparency and will continue to share detailed analyses and updates with the Council and the community to maintain confidence in our process.

Inclusion of Additional Costs

Retention Ponds and Bodies of Water

  • CCOB staff has incorporated costs related to ponds and other bodies of water into the stormwater enterprise fund fees based on the information available at this time. The responsibilities and associated costs with maintaining these types of facilities have grown considerably in recent years due to large development projects (examples: Anthem and Skyestone) reaching the point where these facilities are now accepted by Broomfield while other facilities, due to their age, are requiring additional investment.
    • To understand the full scope of future needs, CCOB is retaining a consultant to estimate better long-term maintenance costs associated with these retention ponds and other bodies of water. These maintenance costs will be incorporated into overall financial planning to ensure that future rate proposals are fully comprehensive.
  • The approved 2023 CIP Budget for Drainage and Stormwater Projects identified both annual recurring capital improvement projects, non-recurring capital improvement projects and specific capital improvement projects beyond the 2023 to 2027 planning period.
    • General Fund, Annual Recurring CIP Drainage & Stormwater Projects - $104,000
    • Sewer Fund, Annual Recurring CIP Stormwater Rehabilitation - City-wide - $150,000 
    • ARAP - Non-Recurring CIP Broomfield Heights Stormwater Improvements - $4,000,000
    • Sewer Fund, Non-Recurring CIP Projects - $3,010,000 
    • Beyond the Current Plan period of 2023 to 2027- $6,554,800
  • Flood Control projects, such as regional detention ponds and major channels, are either completed by the Capital Improvement Program or private developers. View the major stormwater basins in Broomfield.