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
Northern Monument Creek Interceptor update
Reusable return wastewater flows pursued
Rates increase for 2025
TMD contract amendment
2025 budget—FLMD, PPMD 2 and 3
2024 budget amendment—PPMD 3
2024 audit engagement letter
Director and TABOR election 2025
Debt authorization special election results
2025 budget—PPMD 1

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.