The Highlands Ranch Metropolitan District has prepared a 2014 budget with greater expenditures than revenues to be balanced out by using reserve funds.
The district is proposing revenues at $68,335,670 for next year and expenditures at $72,804,023.
Stephanie Stanley, financial reporting analyst for the district who helped prepare the budget, said the district is aiming to have its long-standing debt paid off by 2018. The board has asked for staff to keep 40 percent of operating expenses to pay down the debt. Stanley said at the end of 2014 they will have about $46 million left in outstanding debt with about $16 million left in reserves. They plan to spend $9 million toward the debt annually between 2014-2018.
Stanley said this budget does not include any property tax increases or fee raises because they’ve been able to offer tax cuts on previous mill levies in conjunction with the county is recent years.
“We’ve actually grown them beyond what they want to maintain so we have these funds sitting there so this debt we’ve had is actually being paid off,” Stanley said.
The budget also includes $3.5 million in capital improvement projects for which they have saved up. Included in the projects are a trail in the open space near Mountain Vista High School, a trail near Historic Park around the Highlands Ranch Mansion and one through the Spaces subdivision to cost a total of $240,000. Most of the rest of the money will be spent on repairs of existing facilities, trails and parks. Stanley said as the community reaches build-out, a majority of capital improvement dollars go toward maintaining what they already have.
“As our assets age, they have to be replaced. That’s why when you hear about reserves it’s because you gotta have something there,” said Rick Owens, chairman of the board of directors for the metro district. “We can’t print money like the federal government, we have to be prepared for emergencies and that’s why we keep some of the money intact.”
There will also be about $549,00o in restoration of the Highlands Ranch Mansion paid by the county.
Stanley said what’s driven up expenditures is increased costs with Littleton Fire Rescue, which they contract with, due to increasing salaries and equipment costs.
Owens said the metro district has some of the lowest taxes in the South Metro area.
“That’s where we need to strike the balance of having our community attractive because of low taxes and having good amenities and services,” Owens said.
There will be a public hearing at 6:30 p.m. Nov. 26 at the Highlands Ranch Metro District headquarters and then the board will approve the budget Dec. 11.
Clayton Woullard: 303-954-2671, cwoullard@denverpost.com or
