||Your District is comprised of 3 major funds: the General Fund which
contains the governmental operations, a Water Enterprise Fund which is the
business providing irrigation water to customers and the Debt Service Fund
which receives the revenues to repay the outstanding general obligation
debt of the District.
2014 was not a reassessment year, thus we saw a minimal increase in the
assessed valuation of the property within the boundaries of the District.
The majority of the increase was driven by the Health One facility. Our
total assessed valuation for 2014 was $56,850,230. This will generate tax
revenues of approximately $2,980,000 for 2015. Our total assessed
valuation continues to be around 15% less than the assessed valuation
prior to the economic downturn of 2008. Even with this decrease in
valuation, your Board has continued to budget the same tax levy of 49.000
mills which the District imposed in 2008. Prior to 2008, the total mill
levy was in excess of 50.000 mills.
General Fund: To operate the government side, we anticipate tax
revenue of $729,957 from our 12 mill operating levy & our share of
Arapahoe County motor vehicle taxes. That forecast is in line with revenue
received in 2014. Operating costs are anticipated to be $190,383 for the
governmental costs of the District, $160,000 for landscape maintenance of
center medians & green belts, $700,000 for matching fund projects with the
three HOA’s in the District. The District anticipates ending 2015 with
healthy reserves in excess of $900,000. A portion of the reserves are
required to fund operating in the beginning of the year prior to the
receipt of property taxes.
Water Enterprise Fund: For 2015 the District will maintain the
two-tiered rate used on water sales. The District charges HEB a $25,000
monthly service fee from March to October and a $2.75/1000 gallon
consumption fee for water provided from its wells on the east side of HEB
or the East Cherry Creek Valley (ECCV) pipeline located on the south side
of E-470. This rate structure insures taxpayers the District recovers its
fixed operating costs while providing HEB the lowest possible variable
for water. City water is also available at $6.51/1000. The District
continues to pursue other water sources.
Debt Service Fund: On December 1, 2014, the District prepaid the
remaining Series 2004 Bond in the principal amount of $1,755,000 from
surplus funds in the General and Debt Service Funds. The bonds carried a
coupon rate of 5.00%. This repayment could not be executed prior to
12-1-2014 since the Series 2004 Bonds had call protection until that date.
The District will enter 2015 with remaining general obligation debt in the
amount of $32,800,000. The proceeds of this debt were used by the District
to fund infrastructure construction during the development of the Eagle
Bend area. The debt service mill levy of 37 mills & special ownership tax
is anticipated to raise $2,250,701 to be used for interest payments of
$1,342.019 and principal reductions of $780,000 for 2015. Interest rates
on the bonds range 3.39% to 5.05%. The Board will evaluate options related
to the outstanding Series 2005 in 2015 since those bonds are callable on
December 1, 2015 and the potential exists to refund these bonds to a newer
bond with a significantly lower interest rate.