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Forest Lakes Metropolitan District Articles

Forest Lakes Metropolitan District and Pinon Pines Metropolitan District 3, March 3 – Bonds approved for commercial district; covenant policy enforcement

By Natalie Barszcz

At the Forest Lakes Metropolitan District (FLMD) and Pinon Pines Metropolitan District (PLMD) 3 special meeting on March 3, the board approved the General Obligation limited tax convertible Capital Appreciation Bonds, Series 2025, and approved a covenant policy and design review enforcement resolution for the commercial district.

In attendance were FLMD Manager Ann Nichols, Tom Blunk of CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, District Attorney Nicole Peykov of Spencer Fane law firm, and the following board directors: Secretary Joe Loidolt, president of Classic Homes, Director/resident James Boulton, vice president/project manager of Classic Homes, and Director Steve Schlosser, a project manager for Classic Homes.

President George Lenz, executive vice president of finance for Classic Homes and Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, did not attend.

There were no public comments made during the meeting.

PPMD 3 capital appreciation bonds

Peykov requested the board consider approving the issuance of General Obligation limited tax convertible Capital Appreciation Bonds, Series 2025 for PPMD 3, with a principal amount not to exceed $21 million.

Bond counsel Tiffany Lu Leichman of Taft Stettinius & Hollister LLP summarized the parameters resolution and the bond documents and said the bonds are expected to maintain a fixed interest rate for about a 30-year term. The pledged debt service will be capped at 40 mills subject to an adjustment with a minimum levy of 32 mills. The total maximum repayment will be $27 million with a maximum of 18% interest to a maturity date of no later than Dec. 1, 2056.

Blunk said the service plan allows 50 mills but capped the debt service at 40 mills and is working toward 32 mills. The decision to begin with 40 mills was indicative of the market at the time the commercial development in PPMD 3 began.

The board approved the resolution and identified Nichols as the district representative with Lenz designated as the board representative to execute the documents and other items related to the issuance of the bonds.

Kyle Thomas of D.A. Davidson said the pricing will be assessed at the beginning of April with a tentative closing on April 10.

Peykov said that all signatures will be collected before the closing, and she requested the board approve all the engagement letters for Causey Public Finance LLC and Taft Stettinius & Hollister LLP, ratifying the development strategies pertaining to the preparation of market and tax assessment study, and the ratification of the D.A. Davidson engagement letter.

The board approved ratification of the engagement letters.

PPMD 3 covenant enforcement

Peykov requested the board adopt and approve a PPMD 3 resolution adopting policies concerning covenant enforcement and design review services, limited to PPMD 3 for the property within its boundaries. Peykov said covenant violations are recorded against the property, but under a bill that was passed in the last state legislative session metropolitan districts that provide covenant enforcement and design review services are required to have certain policies in place.

For metro districts with only commercial property within their boundaries, those new policies are limited to having a policy in place, for when the district would impose fines and provide notice to any alleged violators. The district policy is limited to imposing fines and the steps it would need to take. The district provides services regardless of the types of properties, but the current policy could be corrected to include requirements for residential properties should those types of properties be included in the commercial district, said Peykov.

The board approved the covenant enforcement and design policy.

The meetings adjourned at 4:22 p.m.

**********

Meetings are usually held quarterly or when necessary on the first Monday of the month at 4 p.m., via Teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact District Manager Ann Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lake Metropolitan District articles

Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts 2 and 3, Feb. 17 – Northern Monument Creek Interceptor pipeline project IGA approved

By Natalie Barszcz

At the Forest Lakes Metropolitan District (FLMD) special meeting on Feb. 17, the board approved an intergovernmental agreement (IGA) with Triview Metropolitan District (TMD) and Colorado Springs Utilities (CSU) for construction cost sharing associated with the Northern Monument Creek Interceptor (NMCI) pipeline project.

Attending via teleconference were FLMD Manager Ann Nichols, Tom Blunk of CP Real Estate Capital representing Forest Lakes LLC and Forest Lakes Residential Development, district consul Nicole Peykov of Spencer Fane law firm, and the following board directors: President George Lenz, executive vice president of finance for Classic Homes, Secretary Joe Loidolt, president of Classic Homes, Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, Director/resident James Boulton, vice president/project manager of Classic Homes, and Director Steve Schlosser, a project manager for Classic Homes.

Note: There were no public comments made during the meeting.

NMCI update

Nichols said the district is working with CSU and TMD to consider moving its wastewater treatment process to Colorado Springs Utilities (CSU) via the proposed NMCI pipeline. The NMCI pipeline project 30% design phase was completed in November and revealed the preliminary cost estimate from the general contractor to be about $92.8 million. Initially, the thought was to split the cost three ways between CSU, TMD, and FLMD, and although the district and TMD were ready to go in December, CSU decided to lock in the cost sharing with an IGA, with CSU responsible for 65% of the cost and the northern entities responsible for 35%.

But CSU decided to break out the sections, and FLMD and TMD would also be responsible for the cost of the portion of pipeline that serves only the northern entities (about 1,200 to 1,300 feet extending north of the Air Force Academy boundary). The additional pipeline footage pushed the northern entities’ share up to 35.9%, with TMD paying the larger portion of the share because FLMD has only about 500 homes.

Nichols requested the board approve the IGA to lock in cost sharing that breaks out the two sections of the interceptor pipeline, with the upper section participants contributing $33.4 million, up from $32.5 million. CSU believes the project is very important with long-term benefits, and a decision to proceed to a 100% design will be made around mid-December, but the district and TMD are fully committed, said Nichols. See https://wp.ocn.me/v25n1flmd/ and the TMD article on page < 10 >.

Peykov said the IGA is largely in line with the first design agreement, and it is important to continue pushing the project design through and not delay any further.

Stimple said this is a logical extension of where the district has been over the last few years.

The board unanimously approved the IGA.

Peykov said that by end of year the design will be 90% complete, and if the final price is different an addendum can be executed. The district will not be stuck moving forward with the project if the costs are higher than anticipated, said Peykov.

Nichols said it is an expensive project, and all parties are sensitive to the cost, but after running the numbers against continuing to use the Upper Monument Creek Regional Waste Water Treatment Facility (UMCRWWTF), it is still a reasonable cost and it will benefit the customers, said Nichols.

Note: The proposed pipeline would transport the district’s wastewater to CSU’s J.D. Phillips Water Resource Recovery Facility (JDPWRRF) near the intersection of Mark Dabling Boulevard and Garden of the Gods Road in Colorado Springs. Participating in the NMCI pipeline project would avoid the cost of making the required pending regulatory upgrades to the UMCRWWTF.

The meetings adjourned at 4:11p.m.

**********

Meetings are usually held quarterly or when necessary on the first Monday of the month at 4 p.m., via teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lakes Metro District articles

Forest Lakes Metropolitan District and Pinon Pines Metropolitan District 1, 2, and 3, Dec. 2 – Rates increase for 2025; mill levies certified; high cost revealed for pipeline construction

Correction

The article title shown above is corrected from the newsprint and pdf versions which read “Rates increase for 2024”. OCN regrets the error.

By Natalie Barszcz

At the Forest Lakes Metropolitan District (FLMD) and Pinon Pines Metropolitan District (PPMD) 1, 2, and 3 meeting on Dec. 2, the board approved the 2025 budgets and mill levies subject to receiving the revised property tax assessment, approved rate increases and an updated contract for services with Triview Metropolitan District (TMD). The board received updates on the Northern Monument Creek Interceptor (NMCI) pipeline project and the pursuit of renewable wastewater flows.

Attending via teleconference were FLMD Manager Ann Nichols, Tom Blunk of CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, district attorney Nicole Peykov of Spencer Fane law firm, and the following board directors: President George Lenz, executive vice president of finance for Classic Homes, Secretary Joe Loidolt, president of Classic Homes, Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, Director/resident James Boulton, vice president/project manager of Classic Homes, and PPMD 1 Board President Mike Hitchcock, Vice President Mike Slavick, and Secretary April Jean Slavick.

Director Steve Schlosser, project manager for Classic Homes, did not attend.

Note: There were no public comments made during the meetings.

Northern Monument Creek Interceptor update

Nichols said the district is considering moving its wastewater treatment process to Colorado Springs Utilities (CSU) via the NMCI pipeline. About 30% of the design phase for the NMCI pipeline project was completed and the detailed cost of the project will need to be split three ways between CSU, TMD, and FLMD at about $92.5 million, with each participant contributing about $32.5 million. CSU believes the project is very important with long-term benefits, and a decision to proceed was expected around mid-December, and the district and TMD are fully committed.

CSU originally offered to finance the project, but with about $3.5 billion in capital projects to complete over the next five years, FLMD and TMD will look at other ways to finance their share of the project. Donala Water and Sanitation District will be required to buy out FLMD and TMD’s portion of the Upper Monument Creek Waste Water Regional Treatment Facility (UMCRWWTF), said Nichols.

Note: The proposed pipeline would transport the district’s wastewater to CSU, avoiding the required but costly pending regulatory upgrades to the UMCRWWTF.

Reusable return wastewater flows pursued

Nichols said the district is still pursuing reusable return wastewater flows through a project with CSU and the Pikes Peak Regional Water Authority. A feasibility study is being partially funded with a $250,000 grant from the Colorado Water Board Council, and additional participants are being solicited. The project has four participants including the district, and all are required to contribute about $2,000-$3,000 for the study ($10,000 is allocated in the budget). The district is committed to take part in the project to discover how the return flows will be treated and delivered back to the district via northern entities, said Nichols.

Rates increase for 2025

Peykov opened a public hearing on the proposed 2025 rate increases for water, wastewater, and landscape services for FLMD.

Nichols noted the proposed rate increases had been published over 30 days in advance and posted appropriately on the FLMD website on Oct. 4, 2024, and recommended the board approve another 7% increase in water and wastewater service rates and a $1 increase for the irrigation/landscaping monthly fee. The development fees will quickly go away as the district grows closer to buildout, and the increase is necessary to get the rates up to a level that will sustain operations. The district is getting closer to maintaining services without development fees, said Nichols.

Hearing no comments, Peykov closed the hearing.

The board approved the rate increases, 4-0.

TMD contract amendment

The board approved the fourth amendment to the TMD Contract Operations Agreement to increase the fee by 3% for a total of $18,150 per month (the fee includes water and wastewater operations, customer billing, and landscaping fees). See https://wp.ocn.me.v24n12tmd/.

2025 budget—FLMD, PPMD 2 and 3

Nichols said she had budgeted $300,000 in the 2025 budget to complete the FLMD design cost share of the NMCI and $150,000 to repair detention pond No. 1, and she requested the board pass the resolutions to approve the budgets and set the mill levies for the districts.

The boards approved in a 4-0 vote a resolution adopting the 2025 budget, appropriating funds for FLMD, and PPMD 2 and 3, and certifying the mill levies for each district subject to any final change after the El Paso County Assessor notifies the district by Dec. 12 of the adjusted property tax assessments.

Note: The mill levy for PPMD 2 was approved at 55.664 mills, and PPMD 3 was approved at 42 mills for collection in 2025. The mill levy for FLMD is set at 0 mills.

2024 budget amendment—PPMD 3

Nichols requested the board approve an amendment to the 2024 budget for PPMD 3, increasing the cost for the 2023 audit by $8,500. Additional funds were required for the unanticipated full audit.

The board approved the budget amendment.

2024 audit engagement letter

Peykov requested the board approve an engagement letter with Hoelting & Co. for the 2024 audits for FLMD and PPMD 2, and an audit exemption request for PPMD 3.

Nichols said the fees had not yet been finalized via letter, but the FLMD was expected to cost $17,150, and the Pinon Pines districts are expected to cost $6,500 each, according to the auditor.

The board approved the engagement letter subject to final legal review, 4-0.

Director and TABOR election 2025

Peykov said some of the board director seats are expiring for the FLMD, PPMD 2 and 3 boards, but the board should consider a TABOR election in 2025 to waive the property tax revenue limit that will take effect in 2025.

Stimple asked if property owners would need to vote for a TABOR election.

Peykov said within PPMD 2, the property owners would vote, but it would be a costly endeavor that will likely not pass, and the subject was not presented to the PPMD 1 Board of Directors.

Stimple said, “The election would allow the district to opt out of some restrictions that the state government have put in place to limit how much the mill levy can increase per year. Within all Classic Homes active developments, the board recommendation is against placing a TABOR waiver ballot question to the residents because the district would want the residents to vote no against property taxes increasing no more than 4.5% per year, but it is a tough sell,” and he recommended the TABOR election only for the commercial district PPMD 3 and FLMD.

Peykov said that although FLMD does not certify mill levies, the requirement may change in the future.

The board approved the election as recommended, pending clarification on which director seats would be included in the 2025 election for FLMD, PPMD 2 and 3.

Note: The director seats held by Boulton and Schlosser will expire in May 2025.

Debt authorization special election results

Stephanie Net of Spencer Fane LLP confirmed to this reporter that all five directors/electors voted in the special election held on Nov. 5 to approve a new debt authorization for PPMD 3. A canvass meeting was held on Nov. 18 to confirm no public or electors had questions regarding the election and to confirm the results. No members of the public were present. The meeting was not a board meeting and no minutes were taken. See htpps://wp.ocn.me.v24n9flmd/.

2025 budget—PPMD 1

Peykov opened the public hearing for the 2025 budget for PPMD 1. Hearing no comments, the public hearing closed.

Nichols said there were only minor changes in the budget, but an increase of 2 mills was added to cover the debt service set at 22.500 mills. The general operations will be set at 11.133 mills for 2025.

The board unanimously approved a resolution to adopt the 2025 budget, appropriating funds, and certifying the mill levy at 33.633 mills, for collection in 2025.

The board also unanimously approved/adopted:

  • The 2024 audit engagement letter with Hoelting & Co., for a fee of no more than $6,500.
  • The annual administrative resolution, meeting time, and schedule.
  • The Colorado Open Records Act hourly retrieval rate of $41.37 (the first hour is free).

Board member election

The board unanimously approved a board member election for May 2025 subject to verification of which director positions are up for re-election.

Note: The five-member all-resident PPMD 1 board has three incumbent members and has had two vacant positions for the past few years. All three directors are required to be present at each meeting to maintain a quorum for voting purposes. The director positions are not term limited, and all five director positions will be on the ballot. Self-nomination forms to be a candidate for district board member may be obtained from: Stephanie Net, paralegal, Spencer Fane, 1700 Lincoln St., Suite 3800, Denver, Colorado 80203. Tel: 303-839-3912 Fax: 303-839-3838 or email: snet@spencerfane.com.

The meetings adjourned at 4:48 p.m.

**********

Meetings are usually held quarterly or when necessary, on the first Monday of the month at 4 p.m. via teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lakes Metro District articles

Forest Lakes Metropolitan District and Pinon Pines Metropolitan District 3, Aug. 14 – Debt authorization ballot initiative approved

By Natalie Barszcz

The Pinon Pines Metropolitan District (PPMD) 3 board held a special meeting on Aug. 14 to approve a debt authorization ballot initiative for the November election.

Attending via teleconference were District Manager Ann Nichols, Forest Lakes Metropolitan District (FLMD), Tom Blunk, CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, District Attorney Nicole Peykov of Spencer Fane law firm, and the following board directors: President George Lenz, executive vice president of Finance for Classic Homes, Secretary Joe Loidolt, president of Classic Homes, Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, and Director James Boulton, vice president/project manager of Classic Homes.

Director Steve Schlosser, project manager for Classic Homes, did not attend.

Note: The timing for the meeting was unclear for some of the dial-in participants due to an early email exchange confirming 4:30 p.m. A meeting time of 4 p.m. was published on the district website. Peykov and Blunk joined the meeting late due to the miscommunication.

Debt authorization requires special election

Nichols said the need for a special election on Nov. 5 to approve a new debt authorization for PPMD 3 came about due to Blunk working with an underwriter to issue bonds from PPMD 3 a couple of years ago. Then an issue was raised by the Town of Monument with the building of warehouses, and Blunk pulled back on issuing bonds from PPMD 3 due to an unattractive bond market. The underwriter knew that the state statute to issue debt would expire after 20 years, and Spencer Fane informed the district that the statute had expired since the authorized debt had been approved in 2003, said Nichols.

Peykov said the only debt issued for PPMD 3 was voter approved in a 2003 election. Because the debt is only valid for 20 years under the Colorado Special Districts Act, the board needs to consider authorizing an election to gain voter approval again. The proposed ballot questions will only be mailed to the PPMD 3 board members, the only eligible electors. PPMD 3 does not have any residents and the commercial lot owners/businesses are not eligible to vote. For the district to issue any further debt, voter approval is required, said Peykov.

Lenz asked if the 2024 ballot would differ from the 2003 ballot, knowing the numbers are likely much higher now.

Peykov said the allocation in the PPMD 3 service plan is limited to a $21 million cap unless the board wanted to proceed with a service fund amendment up to $97.3 million for an intergovernmental agreement with FLMD (the operation district with the project). The amendment is limited to the $21 million cap for water, sewer, and street infrastructure.

Stimple said this election is necessary for Blunk to issue or receive financing for PPMD 3, and if the owners Forest Lakes LLC decided to lend funds to the district.

The board unanimously authorized the election to be conducted by Spencer Fane law firm on Nov. 5.

The meeting adjourned at 4:18 p.m.

**********

Meetings are usually held quarterly or when necessary, on the first Monday of the month at 4 p.m., via teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810 or anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Metro District articles

NDS ribbon cutting, Aug. 14

By Natalie Barszcz

Triview Metropolitan District (TMD) Manager James McGrady welcomed about 40 invitees and said the Northern Delivery System (NDS) will forever change how TMD and Forest Lake Metropolitan District (FLMD) provide water to almost 3,000 single-family homes along with multifamily and commercial customers. TMD will no longer be dependent on nonrenewable ground water to supply the demands of its customers. The districts’ Denver Basin wells will be used as a supplemental supply on max use days and during periods of drought in the future.

About nine years ago, TMD set about acquiring and decreeing 1,950 acre-feet of renewable water rights for municipal use, and since then the district has constructed 1,630 acre-feet of storage in the South Reservoir, a part of the Stonewall Springs Facility. The district also has access to over 1,000 acre-feet of storage in Big Johnson Reservoir as a result of its majority ownership in the Fountain Mutual Irrigation Co., and leases 999 acre-feet of water storage from the Bureau of Reclamation. The NDS pump station is capable of delivering up to 4.0 million gallons per day of renewable water to Northern El Paso County, imparting about 550 feet of head and lifting the water to the districts “C Plant” tank located in the Sanctuary Pointe subdivision. The district’s water rights will be delivered to the Highway 83 Tank using Colorado Springs Utilities (CSU) extensive conveyance, treatment, and distribution system.

The majority of the $24 million delivery system design and infrastructure project was funded with cash acquired from the sale of tap fees from development within the district. While the construction of the pipeline was completed in less than 16 months, it took the last seven years to build and permit the project. The NDS pipeline will deliver the district’s collection of water rights obtained for about $40 million and made possible by a $10 million 25-year agreement with CSU, for a total project cost of about $75 million, McGrady said.

McGrady thanked President of T-Bone Construction Mike Thibault, Kiewit Project Manager Max McClean, Operations Manager Kiewit Infrastructure Mike McDonald, RESPEC Engineering staff John McGinn, Gwen Dahl, and Mario Dipasquale, TMD staff Rob Lewis, Kevin Fackerell, Steve Sheffield, and Matt Rayno, and the many sub-contractors involved in the project and the TMD Board of Directors’ past and present for their leadership.

Above: The NDS pump station built by T-Bone Construction is pictured on Aug. 14. Photo by Natalie Barszcz.
Above: Ribbon cutting Aug. 14 at the NDS pump station built by T-Bone Construction. From left, Tri-Lakes Chamber of Commerce Ambassador Sandy Shook, President of T- Bone Construction Mike Thibault, Treasurer/Secretary James Barnhart, Triview Metropolitan District (TMD) Manager James McGrady and District Manager Forest Lakes Metropolitan District (FLMD) Ann Nichols cutting the ribbon, Vice Chair Anthony Sexton, Director Jason Gross, Monument Town Council member Marco Fiorito, Kiewit Project Manager Max McClean, Operations Manager Kiewit Infrastructure Mike McDonald, and President Mark Melville in front of the TMD Northern Delivery System (NDS) pump station at the ribbon cutting event on Aug 14. Director Amanda Carlton was unable to attend. Photo by Natalie Barszcz.

Natalie Barszcz can be contacted at nataliebarszcz@ocn.me.

Other Water-related articles

Forest Lakes Metropolitan District/Pinon Pines Metropolitan Districts 2 and 3, July 15 and Pinon Pines Metropolitan District 1, July 22 – 2023 audits receive clean opinions

By Natalie Barszcz

The Forest Lakes Metropolitan District (FLMD) Pinon Pines Metropolitan District (PPMD) 2 and 3 boards held a joint special meeting on July 15 at 4 p.m. to conduct public hearings and accept the 2023 audits for FLMD and PPMD’s 2 and 3. On July 22, the PPMD 1 board held a special meeting to hold a public hearing and accept the 2023 audit.

Attending via teleconference were FLMD Manager Ann Nichols, Tom Blunk, CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, District Attorney Nicole Peykov of Spencer Fane law firm, Sarah Steph, vice president of accounting for Classic Homes, and the following board directors for all three boards: President George Lenz, executive vice president of finance for Classic Homes, Secretary Joe Loidolt, president of Classic Homes, and Steve Schlosser, project manager for Classic Homes.

Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, and Director James Boulton, vice president/project manager of Classic Homes, were excused on July 15.

2023 audit presentation

Lenz opened the public hearing on the 2023 audits for FLMD and PPMD’s 2 and 3. No comments were heard, and the public hearing was closed. Lenz requested Nichols refresh the board with an explanation about the appropriation issue that was approved at the June 14 meeting. See wp.ocn.me/v24n7flmd/.

Nichols said the FLMD budget was amended and approved by the board at the end of 2023; however, the appropriation conveying public infrastructure to other governments at year end for the Falcon Commerce Center phase 2 and FLMD filings 5, 6, and 7 (including the bridge in the west valley) was not made until last month. The district made the entries totaling about $9 million in dedicated public roads to the appropriate entities on time. Although there was no expenditure, the auditors insisted certain journal entries be covered by a board appropriation. Tom Sistere of Hoelting & Company Inc. notified the district that even though there was no actual expenditure of funds, without the amendment the district would likely receive a letter from the state auditor stating the district had exceeded its appropriations. It was worth the effort to make the journal entry corrections and appropriations before submitting the audit to the state, and the auditors agreed, said Nichols.

All three boards unanimously accepted the three audits as presented.

The meeting adjourned at 4:10 p.m. on July 15.

PPMD 1

At the PPMD 1 meeting on July 22, the three-member board accepted the 2023 audit as presented.

Attending via teleconference were Nichols, Peykov, and board directors President Mike Hitchcock, Vice President Mike Slavic and Secretary AJ Slavic.

Hitchcock opened the public hearing and receiving no comments, closed the hearing.

Nichols said the 2023 audit documents had been forwarded to the board for comment before the meeting, and the district had received a “clean opinion” from Hoelting & Sons.

The board unanimously approved the 2023 audit as presented.

The meeting adjourned at 4:12 p.m.

**********

Meetings are usually held quarterly or when necessary on the first Monday of the month at 4 p.m., via teleconference. Meeting notices are posted at least 24 hours in advance at forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lakes and Pinon Pines Metropolitan District articles

Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts 2 and 3, June 14 – 2023 budgets amended

By Natalie Barszcz

The Forest Lakes Metropolitan District (FLMD) and Pinon Pines Metropolitan District (PPMD) 2 and 3 boards held a joint special meeting on June 14 to conduct public hearings on the amended 2023 budgets for FLMD and PPMD’s 2 and 3. The boards also adopted a second amendment to the FLMD and PPMD’s 2 and 3 budgets appropriating funds for the respective districts.

Note: The joint meeting was held via teleconference, the first meeting since December 2023. See www.ocn.me/v24n1.htm#flmd. A quorum could not be met for a special meeting scheduled on June 28 to approve the 2023 audits.

Secretary Joe Loidolt, president of Classic Homes, was excused.

2023 budget amendments

President George Lenz, executive vice president of finance for Classic Homes, opened the public hearing on the 2023 budget amendments for FLMD and PPMD’s 2 and 3. No comments were heard, and the public hearing was closed.

District Manager Ann Nichols said she had already amended the budget for FLMD for the conveyance of public infrastructure the district receives at year end for the Falcon Commerce Center phase 2 and FLMD filings 5, 6, and 7. Developers spent a significant amount on installing public roads, which creates a liability for the developers until those assets are transferred. The district immediately made the following entries to dedicate the public roads to the appropriate entities:

  • El Paso County filings 5, 6, and 7
  • The Town of Monument—Falcon Commerce Center

Nichols said there is no expenditure, just a journal entry the auditors insist is covered by an appropriation, and the board was asked to review the worksheet and approve the resolutions for:

  • The additional appropriated amount of $9.5 million for road infrastructure in FLMD, a contribution to other governments.
  • An additional $600 for the liability insurance increase for PPMD 2 (West Valley).
  • An increase in funds for the 2023 audit for PPMD 3 (Falcon Commerce Center).

The district had allocated $1,000 in the budget for a request for audit, but due to the level of activity in PPMD 3, a full-blown audit was required for about $6,000, said Nichols.

Treasurer/Assistant Secretary Douglas Stimple, chief executive officer of Classic Homes, said there had been no requirement to make similar corrections before audit presentations for any of the other special districts Classic Homes had developed.

Nichols said the district’s auditors, Hoelting & Co. Inc., had notified the district that even though there is not an actual expenditure of funds, a note in the audit would appear stating the district had exceeded its appropriations. It is worth the effort to make the journal entry corrections and appropriations before submitting the audit to the state, and the auditors agreed, said Nichols.

The board made a blanket motion to approve three resolutions appropriating funds for the three districts.

The meeting adjourned at 10:35 a.m.

**********

Meetings are usually held quarterly or when necessary, on the first Monday of the month at 4 p.m., via Teleconference. A special meeting will be held in July (date to be confirmed) for the 2023 audit presentations. Meeting notices are posted at least 24 hours in advance at forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lakes Metropolitan District articles

Forest Lakes Metropolitan District, Pinon Pines 1, 2, and 3, Dec. 4 and 13 – District participates in Northern Delivery System; rates increase for 2024; budgets approved

By Natalie Barszcz

At the Forest Lakes Metropolitan District (FLMD) and Pinon Pines Metropolitan District (PPMD) 2 and 3 meeting on Dec. 4, the board approved participation in the Northern Delivery System (NDS), approved the 2024 budgets and mill levies subject to receiving the Jan. 3 revised property tax assessment, and approved rate increases and an updated contract for services with Triview Metropolitan District (TMD). The board received budget-related updates on the Northern Monument Creek Interceptor (NMCI) pipeline project and the Pikes Peak Regional Water Authority/Colorado Springs Utilities (CSU) Indirect Potable Reuse Study.

A town hall meeting preceded the regular board meetings via teleconference at 3 p.m. District Manager Ann Nichols confirmed that no residents attended the six-minute meeting to receive updates on the FLMD public infrastructure project status, and the PPMD 1 and 2 outstanding debt and financial statement reviews. The PPMD 1 all-resident board members did not attend any of the scheduled meetings on Dec. 4. A rescheduled special meeting was held on Wednesday, Dec. 13 at 4 p.m. At the PPMD 1 special meeting, the board approved a reduction in the debt service mill levy for PPMD 1, adopted the 2024 budget, certified the mill levy (pending the Jan. 3 revised property tax assessments), and approved the annual administrative and board member election resolutions.

Note: The meetings were held via teleconference.

FLMD and PPMD 2 and 3

Treasurer/Assistant Secretary Douglas Stimple, chief executive officer of Classic Homes, was excused.

Northern Delivery System participation agreement

District Attorney Russell Dykstra of Spencer Fane LLP requested the board approve a proposal for the district to buy into the capacity of the NDS.

Nichols said:

  • The district proposes a participation agreement in the NDS to connect the district to the CSU water storage tank (Highway 83) and deliver return flows back to the district.
  • TMD upfronted the cost of the NDS that is awaiting completion of the pump station at the Highway 83 tank before water can be delivered. See www.ocn.me/v23n12.htm#tmd.
  • The district will own 3.7% of the total share capacity of the pipeline.
  • CSU will charge a convey, treat and deliver fee annually to TMD for 25 years. The district will pay 3.7% of the total annual cost billed to TMD (subject to CSU rate increases).
  • The delivery fee will also increase incrementally for FLMD if TMD needs to increase the meter size in the future.
  • The district budgeted $200,000 in 2023 and $800,000 in 2024 (split into five payments of about $199,506).

Tom Blunk of CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, said it was important to protect water rights with TMD and complete the loop for the district.

Nichols said even though the district is not quite ready to exercise control of its return flows, the water supply including surface water is virtually all 100% reusable to extinction, and all the first use water supplied to customers can be recaptured and legally reused. It is essential in this environment to retain water rights and get the water back to the district when needed, and the TMD agreement will allow this to happen (via an existing interconnect) when the Beaver Creek flows into Bristlecone Lake are not very high, she said.

The board approved the NDS Participation Agreement with TMD, 4-0.

Future water reuse possibilities

Nichols said the district is considering moving its wastewater treatment to CSU in the future through the NMCI pipeline. The NMCI pipeline project request for proposal design is in process, and CSU is close to choosing a consultant. The NCMI will move ahead only if after 30% of the design phase reveals the pipeline is the most efficient way to provide service to customers, instead of making the costly regulatory requirements to the Upper Monument Creek Waste Water Regional Treatment Facility. The 2024 budget includes $90,000 for the district’s share of the design cost. The Pikes Peak Regional Water Authority/Colorado Springs Utilities Indirect Potable Reuse Study would cost about $350,000, and a grant for $250,000 had been requested from the Colorado Water Authority. If the grant is successful, the remaining cost of $100,000 will be split between the participants, she said.

Rates increase for 2024

Dykstra said the district had not received any public comments before the meeting. He opened a public hearing for the proposed 2024 rate increases for water, wastewater, and landscape services for FLMD and noted the increases had been published over 30 days in advance and posted appropriately on the FLMD website from Oct. 11, 2023.

Nichols recommended the board approve the proposed 7% increase in water and wastewater service rates, with no change in development fees, and a $1 increase for the irrigation/landscaping monthly fee. The increase is necessary to get the rates up to a level that will sustain operations for the future now that development fees cannot be relied on as the residential districts grow closer to buildout, said Nichols.

The board approved the rate increases, 4-0.

2024 budget—FLMD, PPMD 2 and 3

The boards unanimously approved the resolution adopting the 2024 budget and appropriating funds for 2024 for FLMD and PPMD 2 and 3.

Nichols said the mill levies are exactly the same as in 2023 for FLMD and PPMD’s 2 and 3, and she requested the board approve the resolutions to set the mill levies for the districts, subject to any final change after the El Paso County Assessor notifies the district on Jan. 3 with the adjusted property tax assessments.

Blunk said the debt service mill levy for PPMD 3 will be analyzed in 2024, and it’s possible that the mill levy will be lowered in 2025.

The board approved 4-0 the mill levies and transparency notices for FLMD, and PPMD’s 2 and 3, subject to any adjustment in early 2024.

Note: The mill levy for PPMD 2 was approved at 55.664 mills, and PPMD 3 was approved at 50 mills for collection in 2024. The mill levy for FLMD is set at 0.000 mills. The 2024 transparency notices for all four districts (including PPMD 1) will be posted in January 2024 at www.forestlakesmetrodistrict.com.

Amended 2023 budget for FLMD

Dykstra opened a public hearing to consider approval of a resolution adopting the amended 2023 budget for FLMD.

Nichols said the amendment is required at the end of 2023 for the conveyance of the public infrastructure from Filings 5, 6, and 7 development and Phase 2 of the Falcon Commerce Center. Collectively it amounts to just over $24 million ($9 million includes public infrastructure expenditure for roads that will be conveyed to the appropriate jurisdictions—El Paso County and the Town of Monument). The amendment increases the expenditures to sufficiently cover the conveyance, said Nichols.

The board approved the 2023 budget amendment, 4-0.

2023 audit engagement letter

Dykstra requested the board approve an engagement letter with Hoelting & Co. for the 2023 audits for FLMD and PPMD 2 and an audit exemption request for PPMD 3.

Nichols said the fees had not yet been finalized via letter, but the FLMD’s fee was expected to be $17,150, and the Pinon Pines districts’ fees are expected to be $6,250 each, according to the auditor.

The board approved the engagement letter subject to final legal review, 4-0.

The board approved the third amendment to the TMD Contract Operations Agreement to increase the fee by 10% for a total of $18,150 per month (the fee includes water and wastewater operations; customer billing; and the increase adjusted for the landscaping fee). See TMD article on page < 15 >.

The Dec. 4 meetings adjourned at 4:53 p.m.

2024 budget—PPMD 1

Dykstra opened the public hearing for the 2024 budget for PPMD 1.

Nichols said the assessed property values rose significantly on existing homes and the little bit of new construction in PPMD 1. She proposed reducing the existing debt service from 31.5 mills to 20.5 mills beginning Jan. 1, 2024, and said she would not know if the district would have enough mill levy to cover the operating expenses and management for PPMD 1 until the adjusted property tax assessment is received on Jan. 3 from the El Paso County Assessor.

President Mike Hitchcock said he did not want to put too much burden on the taxpayer, just pay the bills.

Nichols said even with the 11 mills reduction to the debt service, the district would still retain a little cushion at the beginning of the year and through to the end of 2024.

The board unanimously approved a resolution to adopt the 2024 budget, appropriate funds, and set the mill levies at 29.133 mills for collection in 2024 (subject to any necessary adjustment after the final evaluation of property tax assessments from the El Paso County Assessor on Jan. 3).

The board unanimously approved the 2023 audit for PPMD1 for a fee of no more than $6,250.

Annual administrative resolution

Dykstra said the state Legislature mandates that special districts must now provide a town hall for residents to attend annually. The district will hold an annual town hall meeting on the first Monday of December 2024 at 3 p.m. Out of the 120 town hall meetings previously held, only two residents had attended, and although there is good intent by the state Legislature, the meetings have not been super effective to date, he said.

All four boards approved the 2024 annual administrative resolution that includes the addition of an annual mandated town hall meeting.

Note: This reporter did not attend the town hall meeting at 3 p.m. on Dec. 4.

Board member election

The board unanimously approved the transparency terms for the board member election scheduled for May 2025.

Note: The all-resident five member PPMD 1 board has two director positions vacant. The three incumbent directors are required to be present to maintain a quorum for voting purposes at each meeting. Board director positions are not term limited.

The meeting adjourned at 4:18 p.m.

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Meetings are usually held quarterly or, when necessary, on the first Monday of the month at 4 p.m., via teleconference. Meeting notices are posted at least 24 hours in advance at forestlakesmetrodistrict.com. For general questions, contact District Manager Ann Nichols at anicholsduffy@aol.com or 719-357-5810.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lakes Metropolitan District (FLMD) articles

Forest Lakes Metropolitan District, Pinon Pines 1, 2, and 3, Aug. 7 and 14 – 2022 audits approved; contract services cost increases; water reuse project possible

By Natalie Barszcz

The Forest Lakes Metropolitan District (FLMD) Pinon Pines Metropolitan District (PPMD) 2 and 3 boards met on Aug. 7 to approve the 2022 audits and a second amendment to the agreement for the contract for services with Triview Metropolitan District (TMD). The boards also received updates on the Northern Monument Creek Interceptor Project (NMCI) and the Colorado Springs Utilities (CSU) Indirect Potable Reuse Project, and held an executive session related to intergovernmental agreements. The PPMD 1 all-resident board held a “special meeting” on Aug. 14 to reappoint President Mike Hitchcock to the board, approve the 2022 audit, and accept the board financial reports.

Note: Both meetings were held via teleconference. The boards had not met since December 2022.

Treasurer Douglas Stimple, chief executive officer of Classic Homes, was excused.

2022 audits

District Manager Ann Nichols said the board directors had previously received the full packet containing the 2022 audits for FLMD and PPMD 2 and 3 and, after receiving no comments, CPA Tom Sistare of Hoelting & Co. Inc. had filed the audits with the state to meet the July 31 deadline. The audits were “usual” and the financial controls were good except for PPMD 3, which had been audit exempt until 2023. In early 2022 it was discovered that some of the Public Improvement Fee (PIF) revenue belonged in 2021 and that her original estimate for PIF in 2022 was much higher than $240,000. The PIF revenue in 2022 was $455,000, significantly higher than in previous years. The PIF is estimated to be considerably more when the “Quik Trip” opens in the Falcon Commerce Center, said Nichols.

The board approved the 2022 audits as presented for all three boards, 4-0.

Contract for services with TMD

Nichols said a conversation with TMD Manager James McGrady revealed that the initial estimate for the contract for service agreement with TMD initially approved for $6,000 per month was not enough because the agreement was made before the 2023 budget, and a second amendment increasing the monthly cost to $6,700, back dated to July 2023, was needed. The TMD staff is doing a good job in the district, and about $4,000 is certainly justified for the remainder of the year, said Nichols. See www.ocn.me/v22n8.htm#flmd and www.ocn.me/v22n8.htm#tmd.

Secretary James Boulton, vice president/project manager of Classic Homes, asked if TMD would be replacing dead trees and providing trail maintenance and snow removal service.

Nichols said those services would be provided at an hourly rate for time spent, plus materials when needed. An amendment will be made to the contract services amendment, she said.

The board approved the contract for services increase, 4-0.

NMCI

Nichols said it was anticipated that CSU would request bids on the design for the NMCI in early 2023, but issues arose with the design that went through an old landfill on the U.S. Air Force Academy (USAFA) property. The USAFA is now in agreement with a design that will route the pipeline around the airfield, and it is close to signing the National Environment Policy Act assessment and approval of the re-routed design. The design phase is way behind, but the request for proposals was scheduled to be sent out by the end of August. By the end of the year or as late as spring a cost estimate of the design will be known, then FLMD can decide on the most efficient route to proceed.

FLMD and TMD are committed to seeing the design phase through but will not proceed with the construction of the NMCI pipeline until all costs are known. As a factor in the decision process, the districts are also seeking the scope and cost of upgrading the Upper Monument Creek Regional Wastewater Treatment Facility to meet the state requirements, said Nichols.

Wastewater return flows possible

Nichols said the Northern Delivery System (NDS) pipeline project TMD is developing will connect into CSU to convey, treat, and deliver water to customers in northern El Paso County. CSU continues to explore recapturing return flows with the Indirect Potable Reuse Project (formerly the reuse project under the Pikes Peak Regional Water Authority) for districts participating in the NMCI pipeline project. Wastewater would be delivered via the NMCI and treated at the J.D. Phillips Water Resource Recovery Facility on Mark Dabling Boulevard, and reuse flows would then be recaptured down Monument Creek at some point. CSU has identified six alternative arrangements to collect reuse water for treatment in Monument and Fountain Creeks before sending water to the Southern Delivery System. The projects are linked, and the costs may be presented to the board in the next couple of months, said Nichols. See www.ocn.me/v23n1.htm#flmd and the TMD article on page < 1 >.

Executive session

The PPMD 2 and 3 boards and Tom Blunk and William Muller of CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, moved into an executive session at 4:17 p.m., pursuant to Colorado Revised Statutes 24-6-402(4) (b) and (e) to receive specific legal advice from district counsel Russell Dykstra of Spencer Fane LLP and instruct negotiators in matters related to intergovernmental agreements.

Nichols confirmed to OCN that after the boards returned to the regular meeting, no action was taken, and the meeting promptly adjourned at 4:38 p.m.

PPMD 1

Nichols said that due to a miscommunication, Hitchcock had missed the deadline to file a self-nomination form for another four-year term on the PPMD 1 Board of Directors, and he would need to be appointed to the board.

President Mike Slavick and A J Slavick approved the appointment, and Hitchcock confirmed he had been read the oath of office by a notary. The board members approved Hitchcock be reinstated as board president. Mike Slavick returned to the vice president position, and A J Slavick is the board secretary. Former Director Chris Paulene did not re-apply for a board position in the May 2023 election, said Nichols.

Note: Two board director vacancies remain on the PPMD 1 board. Any eligible elector residing in PPMD 1 can apply for consideration for a board position.

PPMD 1 2022 audit

Nichols requested the board accept the 2022 audit that was received in July from Hoelting & Company Inc. The board was provided with the management and internal control letters, and the financial statements. The audit was filed with the state by July 31, said Nichols.

The board unanimously accepted the 2022 audit as previously presented.

PPMD 1 financial statements

Nichols said the board had received the June financial statement for approval.

The board unanimously accepted the financial statements as presented for June.

The meeting adjourned at 4:20 p.m.

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Meetings are usually held quarterly or when necessary, on the first Monday of the month at 4 p.m., via Teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact District Manager Ann Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Other Forest Lakes Metropolitan District articles