Recap of August 14
Virtual Community Meeting

Meeting summary

The meeting introduced board members of the Metro district who discussed their roles and responsibilities in managing financial burdens for residential development, including maintaining infrastructure and community areas through 2035. The district faced financial challenges due to a (previously unknown) $100,000 cap on operations and maintenance taxes, leading to reduced services and the need for a November 2025 ballot measure to reset the cap to $500,000. The board addressed community engagement concerns and discussed strategies for improving financial transparency, while exploring options to enhance maintenance and operational capabilities within the district.

Next steps

• Board: Finalize and ratify ballot language for the November election at the special Board of Directors meeting on September 2, 2025

• Board: Communicate election information to residents regarding the two ballot measures

• Board: Develop plans for returning to previous service levels if the ballot measures pass

• Board: Continue community outreach efforts before the early September deadline when they can no longer campaign for the ballot measure

• Board: Correct language on the website to clarify that the $500,000 cap "could never go up without a subsequent ballot initiative”

• Board: Update the website to include all board members in the "Who's on the board" section

• Board: Consider posting Zoom call recordings, transcripts, or more detailed meeting minutes on the website for transparency

• Board: Implement additional cutbacks to address the water budget overages and irrigation repair costs

• Board: Develop a workshop to help translate complicated financial sheets into more understandable formats for residents

• Board: Upload a copy of the PowerPoint presentation to the district website after the meeting

• Board: Upload the recording of this meeting to the micro website dedicated to election issues

• Board: Consider conducting a full reserve study to assess long-term maintenance needs

• Greg: Continue responding to community feedback submitted through the website form

• Greg: Speak at the Arvada City Council meeting next Tuesday, August 19th,  regarding a potential Parks and Rec fee

• Lea: Oversee financial management of improvements for the district in the coming years

• Lea: Meet with interested residents to explain budget details and financial information in more accessible terms

• Lea: Meet with city experts to develop a 10-year plan for park maintenance and repairs

• Lea: Work with water quality specialists to determine the best path forward for pond maintenance

• Residents: Register on the MSI HOA website to receive email notifications about meetings

Summary

Metro District Board Member Introduction

The meeting introduced board members of the Metro district, including Greg Rutz (President), Lea Jensen (Treasurer), Tad Overstreet (Secretary), and Tom Lynch (Asst. Secretary), who discussed their roles and responsibilities. The district's purpose was explained as managing financial burdens for residential development, including maintaining infrastructure, amenities, and community areas. Key responsibilities highlighted included maintaining native areas, snow removal, trail upkeep, retention pond management, pet waste stations, landscaping, and park maintenance through 2035. Participants were encouraged to ask questions at the end, with Trish Harris (legal counsel) managing the discussion.

Metro District Tax Cap Debate

The meeting discussed the financial situation of a metro district, focusing on property tax caps and funding for operations and maintenance. In 2024, during the process to refinance the District’s debt, the district discovered a $100,000 cap on operations and maintenance taxes, which was established in 2004, which is too low given the neighborhood's current state. As a result, the district had to reduce services in 2025, including eliminating waste stations and reducing landscaping. In November, the community will vote on two ballot measures: one to reset the property tax cap for operations and maintenance to $500,000, and another to opt out of a 5.2% annual cap on tax increases imposed by CO state legislation in 2024.

Public Organization Financial Planning

The meeting discussed the financial situation of a publicly run organization, emphasizing the importance of maintaining community standards while fulfilling larger obligations. The organization is working to return to previous levels of spending and prepare for the next 10 years, during which they will be obligated to maintain two city parks until 2036. The board addressed concerns about property taxes and mill levies, clarifying that while property values may increase, the mill levy is set based on what is needed to cover debt and maintenance costs. The group also discussed the discovery of a cap being exceeded, which was not recognized earlier, and the current attorney's involvement in the situation.

Metro District Spending and Transition

Bob Fifer (Arvada City Council member) explained that in 2004, the Jefferson Center Metro District was one of the first formed in Colorado, and it included land that would become Candelas, Leyden Rock, Five Parks, and Whisper Creek. He noted that executives at Remington Homes, who developed Whisper Creek, were unaware that a spending cap was established in 2004, and he scheduled a follow-up meeting with them on the 28th of August to get more information. Bob clarified that while Candelas also has a cap on O&M property tax assessments, they typically only levy about a third of what's allowed. The board discussed the transition of park maintenance to the city by 2035-2036. The Board also confirmed that all metro districts have operations and maintenance caps due to TABOR requirements.

Community Engagement and Budget Challenges

The board discussed challenges in community engagement for upcoming events and acknowledged the need for better organization and information dissemination, and have hired a consultant to help improve outreach efforts. They addressed the limited preparation time for the previous year’s ballot and the constraints on advocacy after the September language setting for the ballot measure. Brian raised questions about board member listings on the website and requested more detailed information on 2024 election results and maintenance issues. The board considered options like renegotiating vendor contracts, community volunteer days, and rebidding services but expressed skepticism about community participation in such initiatives.

Community Tax Cap Discussion

The board discussed the $500,000 tax cap for the district, clarifying that while the cap allows for potential future increases without additional voter approval, it was set high to avoid frequent elections and administrative costs. They explained that the district had exceeded the $100,000 cap in 2024 (and earlier) due to unawareness, and emphasized that the higher cap would provide flexibility for future maintenance and compliance needs without requiring constant voter approval. The board encouraged community participation in future budget discussions and meetings, noting that current homeowner attendance was low despite open access.

Community Financial Transparency Improvements

The meeting focused on improving financial transparency and communication for community members. Susanne emphasized the need for clearer explanations of budget details, particularly regarding the "2 milllevies," and suggested creating a workshop to simplify these explanations for the general public. Greg mentioned that the board would consider this feedback and explore ways to enhance financial communication. Additionally, the possibility of a parks and rec fee being assessed on homeowners was discussed, along with the need to educate neighbors about the community's financial situation. The meeting also clarified the maintenance responsibilities for different areas within the community, distinguishing between MSMD areas and HOA responsibilities.

Mountain Shadows District Financial Overview

The meeting focused on clarifying questions about the Mountain Shadows Metropolitan District (MSMD) and its financial operations. Trish explained that eligible voters are property owners or residents registered in the district, and Mike Lofenstein, the HOA president, inquired about additional revenue sources, which were clarified by Lea and Trish to include urban renewal funds and specific ownership taxes. The board discussed the 500k cap and the reasons for its fixed amount, emphasizing that cost-of-living adjustments do not align with district obligations. The conversation ended with reminders about future meeting announcements and the availability of a website for community engagement.

Metro District Budget and Reserves

The meeting focused on the financial management of a metro district, discussing the need for a larger budget cap to account for unpredictable maintenance expenses. Greg explained that the district typically has low attendance at board meetings, but efforts are being made to increase awareness through mailers and emails. Lea, a new board member, proposed conducting a full reserve study to assess long-term needs for parks and other assets, potentially working with city experts. The discussion also touched on the HOA's responsibility for the clubhouse and pool, which already had previously contracted a firm to perform a thorough reserve study.