Metropolitan District Future Funding of Long-Term Capital Needs
The Ken-Caryl Ranch Metropolitan District Board has been discussing conceptual strategies for future funding of long-term capital needs for nearly two years. The Board has directed use of excess revenues over expenditures and fund balance to complete these projects in the short term. However, financial forecasting of the Capital Reserve Fund has revealed that revenues may not be enough to continue with the full maintenance of the District’s capital infrastructure in the long term.
In analyzing the financial forecasting, the District will likely be able to maintain daily operational functions funded through the General Fund, including recreation programs, events, facility rentals, park maintenance, etc., through 2034. However, without additional funding sources, the Capital Reserve Fund experiences a revenue shortfall in 2028, resulting in the inability to complete critical infrastructure and capital improvement and maintenance projects.
The District’s voters approved the current bond repayment mill levy as part of the issuance of General Obligation Bonds in 2014. This mill levy and repayment are set to expire in December 2024. The District could seek voter approval to convert a portion of the expiring bond mill levy into a general operating mill levy to fund long-term capital needs.
Community Meeting Recording
Want to learn more about the District’s mill levy and possible future funding options for capital and maintenance projects? The District held an online community meeting on May 7 and recorded the meeting for residents to watch at their convenience.
Bond and Mill Levy History
2014: District’s voters approved the current bond mill levy, incurring debt in the form of General Obligation Bonds.
2015-17: Bond money used for Ranch House, Community Center, and Dakota Lodge renovations, new community entrance signs, playgrounds, and park improvements.
December 2024: Bond mill will end, and the debt will be paid off. (Note: the District paid $1.2 million in interest)
What is the Board Contemplating?
- The District has the opportunity, without raising the tax rate or incurring debt, to address a potential revenue shortfall to fund long-term capital and maintenance items.
- The District’s Board could place a ballot initiative on the November 2024 ballot asking voters to approve converting a portion of the bond mill levy as a general operating mill levy designated for capital and maintenance projects.
- The ballot initiative could have a sunset provision or not have an end date.
- Current expiring bond mill is 3.3433 = $928,000 in one year.
More Information
Capital expenditures are required to maintain the quality and condition of the Ken-Caryl Ranch Metropolitan District’s assets and to promote a safe, enjoyable, and positive experience for all participants and community members. All property or equipment related to an infrastructure asset are considered capital projects.
The District’s long-term capital improvement plan, initially formulated during the 2022 budget process, is now updated annually. It encompasses projects projected through 2050 for District-owned or leased properties and equipment, along with some maintenance for several Master Association assets. Although the plan anticipates needs well into the future, the Board only approves the current year of projects as part of the annual budget adoption process.
The Capital Plan is based on four specific sources of information:
• Capital Asset Estimated Life Expectancy
• Community Survey Priorities
• 2023-2027 Strategic Plan
• Immediate Needs
Capital projects include critical maintenance items such as:
• HVAC Systems
• Flooring
• Lighting
• Tennis Court Resurfacing
• Roofing
• Irrigation Systems and Controls
• Parking Lot Maintenance
• Pool Boiler
• Pool Concrete Decking
• Painting
• Park Benches, Picnic Tables, and Signage
Capital projects also include new and replacement projects such as:
• Playgrounds (Community Center, Community Park, North Ranch Park)
• Community Park Master Plan first phase to include new irrigation system, restroom structure, reconfiguration of baseball fields, and pickleball courts
• Community Center pool features, deck furniture, shade structures, splash pad renovations
• Fitness equipment at the Community Center
• Parking expansion south of the playground and Community Garden at the Community Center
• Vehicles, mowers, equipment, snow removal machines, trailers, truck snow plows
Property owners pay property taxes to the Jefferson County Treasurer’s Office each year. The Treasurer’s Office collects the taxes and then disburses funds to various taxing authorities such as the school district, special districts, Jefferson County and law enforcement.
Your property taxes are based on the property value established by the Jefferson County Assessor and the total mill levies for the taxing authorities that provide public services. Taxing authorities use the assessed value to determine their mill levies. A mill is 1/10 of one cent, or $1 of revenue for each $1,000 of assessed valuation. The actual value, determined by the assessor, is multiplied by a rate set by the legislature to arrive at an assessed value. The actual tax amount due is calculated by multiplying the assessed value by the tax mill levy for each taxing authority within the tax district.
Did you know that the largest portion, 42%, of your property tax bill goes to Jefferson County Public Schools? Your local park and recreation provider, the Ken-Caryl Ranch Metropolitan District, receives 14% of your total property tax bill for general operating and another 3% for the bond repayment mill, totaling 17%. The bond repayment mill, which makes up 3% of your total property tax bill, began in 2014 and is set to end in December 2024. See the pie chart with this article for a full breakout of your property tax allocations.
The Ken-Caryl Ranch Metropolitan District has two primary funding sources: property taxes and program/facility fees. Property taxes make up 60% of the District’s funding, and program/facility fees account for 30%. See chart for the full revenue breakdown.
District staff aims to be good stewards of resident tax dollars and has strived to implement multiple examples of good governance and continuous improvement. Financial continuous improvement examples include:
- 11% reduction in Full-Time Equivalents (FTEs) from 2018 to 2023
- Unmodified audit four years in a row
- Successful completion of nearly $1 million in capital projects in 2023
- Secured approximately $350,000 in grants in 2023
- Transferred $2.25 million to the Capital Reserve Fund at the beginning of 2024
- Increased interest income
The staff has also implemented multiple process advancements and efficiencies that contribute to an overall improvement in the District’s governance. Examples include:
- Developed a 5-Year Strategic Plan
- Developed Landscape Design Guidelines that encourage water conservation, promote safety, lower maintenance, establish a brand, and enhance the landscape experience
- Substantial progress on urban forest improvements by removing dead, dying, or dangerous trees
- Implemented online registration and rental processes
- Streamlined numerous processes and software programs, particularly with finance, HR, and licensing
- Consolidated administrative functions at the Ranch House
The District Board and staff have also focused on listening to resident feedback and implementing Community Planning Committee recommendations from the 2021 Resident Survey, such as:
- New playground and other improvements at North Ranch Park
- New special events such as concerts, casino nights, and movie nights
- Increased programming like Ageless & Unstoppable, new fitness classes, and enrichment offerings
- Development of the Community Park Master Plan
- New shade structures at pools and parks
- Lined pickleball courts at Bradford Park