Metro District Moves Forward to Finance Renewable Water for CPN
Jason Carroll (right) and Dawn Jones (rear) from Clifton Gunderson address the CPN Metro District board in February to discuss financing options for renewable water. (photo by Terri Wiebold)
by Terri Wiebold
For the past several years, the Castle Pines North Metro District has been working toward the development and purchase of a renewable water supply. This need is not unique to CPN, but is at the forefront of virtually every community in the South Metro area.
The Metro District staff is working with the accounting firm of Clifton Gunderson to develop a financing plan to allow the District to borrow approximately $60 million dollars to finance renewable water projects, without raising property taxes.
Representatives from Clifton Gunderson presented specifics about the financing plan at the District’s monthly board meeting in February. According to Clifton Gunderson Partner Jason Carroll and Senior Manager Dawn Jones, the plan takes into account existing and future revenue streams such as property taxes, specific ownership taxes, capital improvement fees, miscellaneous income (such as cell tower leases), and interest income, to name a few.
The Metro District is also working with the investment banking firm Stifel Nicolaus to obtain bond financing from a number of potential lenders. Steve Jeffers from Stifel Nicolaus also addressed the Metro District board in February. The Metro District anticipates the selection of a lending institution and initial preparation of the documents to obtain the needed financing to be complete within the next few months.
The Metro District held an open house in March to further discuss future renewable water purchases and financing options. Two additional open houses are scheduled for April 16 and May 1, at 7 p.m. at the CPN Community Center, 7404 Yorkshire Drive. Residents are encouraged to attend to learn more about the proposed financing options.
District Manager James McGrady said, “A modest increase in water rates and fees will be necessary to raise the money needed to make the payments on any new debt issued by the District.”
Final financial projections are available for viewing at www.cpnmd.org, in addition to a list of projects and partnerships the Metro District is currently pursuing.
Questions can be sent to District Manager Jim McGrady at Contact by email.