Castle Pines North at Important Crossroads (Again)

The City of Castle Pines North will face several key hurdles in the coming weeks. The newly incorporated city has been scrambling to fill a $2 million revenue shortfall. On July 21, City officials suddenly found that anticipated revenues would not be available to the City from the existing mill levy assessed by the Castle Pines North Metropolitan District. Those revenues had been previously pledged to lending institutions by the District in order to secure water storage in the Reuter-Hess Reservoir.

According to CPN Metro District manager, Jim McGrady, transferring the District's mill levy to the City would leave the District too constrained for bonding capacity.

Since then, the City has been discussing alternative financing plans with the District's financial manager and board members. Under consideration is a proposal to have the CPNMD reduce the mill levy currently used by the District to pay down debt. The City would then assess a similar tax to fund it's own operations. This approach would appease City officials who were elected on a "no new taxes" platform. However, it would postpone the defeasance of Metro District bonds. These bonds were scheduled to be retired beginning in 2013, resulting in a lower tax rate to the citizens of CPN. The tax would be picked up by the City and assessed "in perpetuity" to fund City operations. Under this plan, lower taxes for CPN seem a remote possibility.

On July 29, City officials and consultants from CH2M Hill met with members of the CPN Metro District and the Hidden Pointe Metro District, both of which operate within the boundaries of the City. Board members from both Metro Districts questioned representatives from CH2M Hill and the City Treasurer, Doug Gilbert on the accuracy of figures presented in the feasibility study used to promote the incorporation effort. Many board members were skeptical of the consultant's answers, and some viewed the City's efforts to capture Metro District revenues as detrimental to the pursuit of renewable water.

CPNMD board members may soon vote on whether or not to reduce the District's mill levy to allow the City to move forward with it's own tax assessment. In any event, voters can expect to see one or more ballot questions proposed by the City to secure tax revenues to fund City operations. City officials will be faced with the prospect of floating another tax measure with little funds in the coffer to promote it.