District continues to pay down debt
This information has been provided the Castle Pines North Metro District.
In 2009, Castle Pines North Metropolitan District (CPNMD) further reduced its historical debt by $2.9 million dollars. This year’s payments have decreased the outstanding balance of the 2006C general obligation bonds from $6.7 million to $4.8 million. If the District continues to prepay its general obligation debt at an accelerated rate, the 2006C bonds may be paid off in 2013. When this debt was originally issued, the payment date was scheduled for 2027. CPNMD will realize a considerable cost savings by not having to pay fees and interest for an additional 14 years.
With lower interest rates in 2009, a larger portion of the repayments were applied to the principle. Reducing the amount of outstanding debt on these bonds will protect CPNMD from paying more in interest if interest rates rise over the next two to three years.
Prepayment of the 2006C bonds will also eliminate the District’s historical debt that is subject to variable interest rates. The only debt remaining will be the 2006 A & B general obligation bonds, which are fixed rate instruments. In 1994, the District was responsible for the servicing of nearly $60 million in bonds. Today, the level of historical debt has been reduced substantially to a remaining balance of $20.59 million.
As more of the District’s historical debt is eliminated, the more the District’s position for future borrowing capacity will be strengthened. This will place the District in a strong position to obtain funding for the acquisition of future renewable water solutions as they become available for purchase.
Questions may be directed to Dan Schmick, Assistant District Manager, at 303-688-8550.
Wastewater rates based on winter water usage
CPNMD bases wastewater rates on the amount of water that is consumed by households during the winter months of December, January and February. Beginning in March of each year, your utility bill is adjusted for the coming year to reflect the water use for those previous three months. The District uses winter consumption because it does not want the amount of water used for irrigation to be a factor. These are the months when irrigation systems are not likely to be run, and irrigation water is conveyed by the District’s storm drainage system, not the sewer system.