EL RANCHO FLORIDA METROPOLITAN DISTRICT
2010 BUDGET MESSAGE
The Budget is a means for citizens to understand the financial aspect of their community government, El Rancho Florida Metropolitan District. It is a guide, a planning document, of amounts to be spent on services within the district. The Budget was developed by the El Rancho Florida Metropolitan District Board of Directors and their Budget Officer. It reflects the projected spending plan for improvements and services associated with the District’s road system, water system and common areas.
HIGHLIGHTS:
ELECTION 2004:
In May 2004, the electors of El Rancho Florida Metropolitan District voted to ‘De-Bruce’, Amendment No.1. This permitted the District to accept, collect, retain and expend the full revenues generated from any and all sources during fiscal year 2004 and each subsequent year, as permitted by law, including and without limitation, the revenues generated from payment of taxes and fees, grants, gifts, loans or any other source of revenue, notwithstanding the provisions of Article X, Section 20 of the Colorado Constitution (“TABOR”), and as a permanent waiver of section 29-1-301, C.R.S. (“5.5% revenue limitation”), or any other law.
Term limitations for the Board of Directors were eliminated in the 1996 election.
ELECTION 2008:
In November 2008, the District asked the electors of El Rancho Florida Metropolitan District for voter approval on Ballot Issue 5C. The ballot issue was passed by the electors with an 85.87% Yes and 14.13% No. The issue allows the District to increase their debt up to $2,000,000 and assess a mill levy for needed improvements to the water system, over time, based on the actual costs incurred annually in the WATER FUND.
GENERAL FUND:
The General Fund revenues will be approximately $17,258 lower than the 2009 levels. The primary sources of General Fund revenue are projected to be $14,500 from Highway User Tax and $26,880 from User Fees. The General Fund revenues are used to provide contract services, address needed road improvements, allocate employee wages and maintain equipment associated with continuance of the District road system. The Directors believe the purchase of the water truck in 2002 has allowed the District to maintain the roads more frequently and more cost effectively. In 2009 the District did gravel replacement and dust control on several of the roads throughout the Subdivision. This expense was approximately $14,510. It is the intention of the Board to do the same type of road maintenance on an annual, rotational basis. 2010 expenditures are expected to be $15,000 for gravel expense/culvert work, $12,000 for the dust-control application and $7,000 for road grading/ditch maintenance.
The District was placed on the State Historical Register in 1996. This made it possible to receive grant money to restore the railroad bridge over the Florida River. The bridge project, upon completion, cost a total of $95,030. ($60,340 of which was received in grant money from the State of Colorado).
The District paved the bridge approaches on both ends to allow for better maintenance of the bridge and the road. Cost is estimated at $42,551. This amount includes maintenance of the bridge decking.
Weed control has been done in association with the Weed Cost Share Program in La Plata County. It is the intention of the District to continue the program in 2010, upon acceptance and approval of the cost Share application.
The Board will be assessing a $10/mo./lot Road Improvement Fee again in 2010. This fee will be adjusted in future years to build a reserve for future road and bridge improvements as needed.
WATER FUND:
The Water Fund was established to finance services to the District’s water system and cover all administrative costs of the District. Revenue sources in 2010 for the Fund are: $80,640 in User Fees, $87,780 in Capital Improvement Fees, and projected Water Revenues of $5,000 . In 2009, revenue from oil and gas royalties received from BP and RED WILLOW was approximately $4,975. The amount is down by $6600 from 2008 The amount received for 2010 will vary as a function of gas use and price.
In October of 2000, the District implemented a special assessment of $15/lot to help meet the annual lease/purchase payment of the Bowman Tract. The land acquisition was implemented in order to protect the District water quality and supply. The lease/purchase agreement on the Bowman Tract was paid off in August of 2005. In 2006 the Board had decided to increase the $15/month charge to $40/month/lot to increase reserve funds for future capital improvements to the water system. This fee was decreased in 2009 to $30/lot and was spent by the Board of Directors for the addition of a new 158,000 gallon tank. In addition to the reserve funds and a receipt of grant money [$110,407] from DOLA (December or early January 2010), the improvements are to be fully funded without the need to impose a mill levy for 2009. The District was anticipating costs for the new tank to run approximately $ 414,000. The actual costs came in at $259,464. The Board has also spent approximately $16,296 on upgrades to the system’s control panel and electrical components. The remaining $19,000 for the controls will be completed in 2010. An additional estimate of $130,000 is needed for a leak detection survey, a system-wide water study, and a meter upgrade program [initial replacement of ¼ of the meters]. The system study, meter upgrade program and leak detection are planned for 2010.The monthly reserve fee will be adjusted annually to build a reserve for future repairs/improvements. For 2010 the Capital Assessment will be $55/mo./lot.
The District levied a property tax to the lot owners in 1986 for the original water system [$160,000]. The bonds were paid in 2001. With the passing of the Ballot Issue 5C in November of 2008, levying a property tax will be the means for future funding of improvements beyond 2010 unless money can be obtain through grants or loans that will be at a lower interest rate than the levy.
The Board of Directors implemented a Water Study in 1992 of the current system to determine the water supply and capital improvements for future demands on the water system. That study will be updated in 2010 to cover looping of the system lines, upgrades to the auto con controls for monitoring storage tank levels, main line upgrades and installation of isolation valves. The District has drilled another well as a back up source for our water supply. The Board spent $65,000 in 2006 to drill a 2 inch well and to upgrade to a 10 inch water line. The larger line addresses the need to increase chlorine retention time before delivery to the first household. The Board has budgeted expenditures of $8,000 to repair main lines that may present problems in 2010. An additional $1,500 is budgeted for meter upgrades/repairs and $4,500 to be used for repair and maintenance to the main pump house and a backup pump. Due to the addition of the new well, the District will incur increased maintenance costs for testing, pumping, and insurance. The costs for testing have been decreased to $5,000 for 2010.
In an effort to have transparency for the tap holders and anyone requiring information on the District, the Board has set up a website where all information on the District’s Budget, rates, maps, minutes, agenda of upcoming meetings, notices, etc. can be obtained. The District is linked with DOLA’s website to enable transparency of the District’s operations.
CONSERVATION TRUST FUND:
Funds for restocking the pond, mowing, and improvements to common areas are the expenses budgeted in the Conservation Trust Fund. Money for this fund is received from Colorado State Lottery.
In 2010, the Board does not intend to stock the pond with fish, however, $4,000 is budgeted for improvement of the beach area and the repairs to the aeration system at the pond.
PERSONNEL:
The District utilizes contract labor for administrative services, water operation services, road maintenance, and snow removal. Legal and auditing services are also on a contractual basis.
FEE SCHEDULE:
Monthly User Fees = $70/developed lot per month
Included in the $70 Base Fee is 10,000 gallons of water. 75% of the base fee is allocated to the operation and maintenance of the water system. A tiered rate structure is implemented for summer use beyond the 10,000 gallons to encourage conservation of water. Road maintenance is 25% of the $70 Base Fee.
Transfer Fees: $100
Tap Fees: None are anticipated for 2010.
Disconnection Fees: $100
There are only 5 undeveloped lots in the Subdivision and four have prepaid taps as a part of the existing water system. A tap purchased in 2010 will be an amount required to cover all costs of tapping into the water system.
Capital Improvement Fees: A special assessment of $30/lot per month is charged to pay for capital improvements to the water system in 2009. For 2010 that total amount will be $87,780. 2010 the capital assessment fee will be $55/lot per month. There was a Road Improvement Fund set up in 2009 for future road improvements. Each lot will be charged $10/mo/lot totaling in 2010 $15,960.
Some of the future capital improvements and major replacement/repairs beyond 2009 are:
1. Water system study
2. District wide line upgrades/looping
3. Upgrade infiltration gallery
4. Electrical improvements
5. Upgrade early warning detection system
6. Addition of isolation valves and meters
7. Bridge Improvements.
The Board will employ an engineering firm to propose a capital replacement plan for the next 10 to 15 years. Grant and financing options will be pursued when the engineer determines final costs. In the interim, capital assessment will continue for 2010 at $55/mo/lot.
METHOD OF ACCOUNTING:
The District operates on a modified accrual basis of accounting each calendar year. An annual Audit or Audit Exemption is performed by a CPA and is sent to the State Auditor for review and approval.