2010 Budget Highlights

The 2010 budget for the Castle Pines North Metropolitan District (CPNMD) was approved by the CPNMD Board at their December 7, 2009, meeting. Board President, Bill Santos, highlighted the primary goals for the coming year aimed at reducing Metro District expenses to continue pursuing renewable water solutions.

Stabilize Costs

One of the main goals for 2010 is the reduction of costs in the area of operations and maintenance, and a reduction in capital expenditures for parks and open space.

Administrative costs will be held in check with no increase in wages or salary in 2010. Health care costs rose 15 percent and staff continues to contribute to a portion of that cost. Overtime will be paid only in the case of an on-site emergency and no additional employees will be hired.

Lower Historical Debt Service Mill Levy from 24 to 22 mills

The CPNMD board of directors approved lowering the amount of money CPNMD collects for historical debt service payment. This means a nominal reduction in homeowners’ mill levy obligations, depending on individual house valuations. Lowering the mill levy will not change CPNMD’s ability to meet its debt service nor alter future plans on paying off historical debt.

Prepay the 2006C Bonds Historical Debt

Continuing to prepay this debt keeps the District on track for a substantial debt service mill levy reduction in 2013. There is an outstanding balance of $4.8 million on the 2006C general obligation bonds. It is hoped that $1.6 million of principal can be prepaid on the 2006C bonds in addition to $1.045 million of required principal payments on the 2006A bonds. At the end of calendar year 2010 the District’s historic debt will stand at $17.9 million, which is an $18.9 million reduction in debt since January 1, 2005.

Pay New Debt Service from the General Fund for 2008 & 2009 COP Bonds
These ertificates of Participation were used for the purchase of water storage in Rueter Hess Reservoir in 2008 and for the purchase of senior renewable water rights on the Lower South Platte River in 2009.

Capital Expenditure Projects – New Water Main for The Retreat Neighborhood
A significant portion of a water main located in The Retreat neighborhood is slated for replacement this year. The section is part of one of the oldest pipelines in the Castle Pines North (CPN) community, first installed during construction of the original development nearly 25 years ago.

Last year, four breaks in the line occurred and upon investigation it was determined that the pipeline had begun to corrode and would continue to fail in this area. A 1,000-foot segment of the pipe will be replaced, which accounts for approximately 20% of the total pipeline length that services the area. This will be the first needed major pipe replacement in CPN since the community started in the 1980’s.

Renewable Water

Other capital expenditures for next year fall under the umbrella of renewable water. They include water rights investigations, storage capacity payments, acquisition of renewable water rights, and design and construction of the Interconnect Pipeline project.

Wastewater Projects

Two infrastructure construction projects are scheduled for this year. The first project scheduled for completion is the final portion of the parallel 16-inch force main that will complete the connection from Lift Station 3 to Forest Park. This force main will provide redundancy in the event of a major failure of the existing force main that is at capacity and is nearly 25 years old. Ninety-nine percent of the wastewater in CPN is conveyed through Lift Station 3.

The second project is at Lift Station 2, located near the entrance of Hidden Pointe. This lift station conveys a portion of the wastewater system’s capacity and it will be consolidated into Lift Station 1, near the entrance of Coyote Ridge Park, thereby eliminating one of the District’s oldest lift stations.

Questions regarding the 2010 budget are welcome and may be directed to CPNMD District Manager, Jim McGrady, or Finance Manager, Dan Schmick by calling 303-688-8550. For more information on CPNMD and to sign up for e-mail alerts, visit www.cpnmd.org.