To my neighbors in Castle Pines North,
In the Aug/Sept issue of the Castle Pines Connection, an editorial, written by a Hidden Pointe homeowner, was printed. This is a fact based response to this residents comments.
Demotion of the CPN City Treasurer?
There is not and never has been a demotion of the City Treasurer because this is an elected position and a demotion is not possible. City Council recognized that the state statutes relative to the Treasurer's roles and responsibilities date from the 1920's and do not reflect modern financial management. This led to the role confusion between the Treasurer and the City staff. At the request of the City Treasurer, Doug Gilbert, an ordinance was prepared and enacted appointing a Deputy City Treasurer. Doug Gilbert helped prepare some of the verbiage of the ordinance that was approved by City Council giving Scott Stewart the ability to perform his accounting duties while maintaining the highest level of security. Doug Gilbert still maintains over sight but no longer manages the day-to-day management of operations of the city accounts. It is a common approach for most cities when there is an elected Treasurer.
City owes 1.5 million to various entities?
The city does have $792,000 start up expenses projected to be fully repaid within 2009. A total of $630,382.34 is owed to CH2M Hill (includes deferred start up expenses) due to periods of time where revenue streams were not fully on track which is understandably a common problem for newly incorporated cities. Cash flow is allowing repayment of about $160,000 per month with projected repayment in full by December, 2009. A total of $76,411.38 is currently owed to the start up City Attorneys and is payable as cash flow permits and can be extended into 2010 as needed. The start up City Attorneys graciously worked with deferred billing in 2008 to accomplish the Lagae zoning and building of the American Academy School. The deferred billing allowed the City to set up the functions of the city, pass ordinances, set up administrative and accounting functions, and fulfill all the required legal functions associated with a newly incorporated city. As mentioned above, all of these start up expenses are on track to be paid in full by the end of 2009 at the recommendation of the City Treasurer and approval of City Council.
Beginning in March and into April of 2009 the Treasurer and the City Council determined that revenue was lower than projected and adjustments needed to be made to the 2009 budget. The 2009 budget was based no prior year data and the information reported to the city by the state was months after the budget was approved. The Public Private Partnership with CH2M Hill allowed the flexibility needed to reduce the expenses quickly to fall in line with the lower revenues than projected. All municipalities had to project and then realign expenses to revenue this past year due to the worst economic recession the U.S. has ever faced.
The city is now operating with a monthly surplus.
The City requested jurisdiction over the local water provider "CPN Metro District"?
The City did request jurisdiction over the Metro District as part of the voter requested and authorized responsibility to manage the city efficiently. The residents voted to approve incorporation based on the feasibility study to consolidate services, integrate the Metro District and decrease taxes and fees/charges. The second piece to incorporation was the idea to share or consolidate HOA services to save residents money while improving services through coordinated purchasing. The opportunity to reduce taxes through integrated services has not progressed as quickly as hoped. A task force was formed by the City Council after incorporation to facilitate positive discussions with the Metro District's Executive Director and staff to implement a collaborative integration plan. To this date the Metro District has refused to comply with the residents request during incorporation to integrate services and reduce the burden of taxes and fees.
A series of formal requests have been submitted to the Metro District counseled by the City Attorney. There is misconception about the city's request for the Metro District to integrate with the city.
The city is financially stable! The city is not requesting the Metro to integrate because the city needs money. The city's goal is and always has been to lower the current tax burden and decrease fees/charges for the residents and businesses.
A group of citizens have turned in a
formal request to the County Commissioners to review the Metro District's service plan in an effort to enhance transparency and drive down taxes. Another citizen group,
CPN Residents for Tax Relief(www.cpntaxrelief.com), has formed to encourage the positive flow of information from the Metro District to the City and serve as an avenue to communicate to the residents the facts about the Metro Districts taxes, fees and charges and how integration into the City will reduce taxes and fees.
The City paid CH2M Hill $160,629 per month for City management? Yes, from January 2009-May of 2009 the City was paying CH2M Hill $160,629 per month for management services based on a budget to both set up a city and provide high levels of service. As of June 2009 the City Council and City Treasurer revised the budget and decreased management services to meet the adjusted revenues. The reductions were a combination of cutting staff in planning (paid by developer fees not taxes), increasing workload on existing staff, and eliminating some staff positions.
The city was able to reduce monthly expenses by 50% in a short period of time due to the Public Private Partnership with CH2M Hill. All cities in Douglas County have needed to drastically reduce expenses in the current economic recession.
Four former members of the Master Association, now city officials, authorized a loan of $200k to pay for incorporation expense. Kim Hoffman, Maureen Shul, Doug Gilbert and Jennifer Havercroft were 2007 Master Association Board Members when the discussion of Incorporation arose due to Castle Pines Village petitioning to flagpole up Lagae Rd and ultimately gain all revenue from the sales tax and new property taxes to be imposed on the CPN business district through a newly incorporated city. There were also 3 additional Board Members who voted to use Master Association funds to complete the due diligence needed to understand the feasibility of incorporation and steps needed to incorporate at the will of the residents.
As noted in the minutes of the Master Association
, no Association funds were expended on a vote yes campaign. The Master Association did fund feasibility expenses. There was not a loan (The 2007 Master Board Members apologize if the promise to repay incorporation expenses was ever stated as a loan and recognize that the repayment promise was confusing). Statements were made by all 7 Board Members that incorporation expenses would be highly encouraged to be repaid by the city but ultimately had to be approved by the first elected officials.
A legal opinion from the Master Association Attorney validated that the 2007 Board acted in good faith to research the incorporation threat from the Village and confirmed the responsibility of the Master Board to complete due diligence regarding the feasibility of incorporation and steps to incorporate at the will of the residents.
This payment of expenses was not a loan. A loan requires a borrower. The city did not exist and could not be a borrower. The expenses were paid to a range of firms including law firms, contractors working for the CPN Connection, and feasibility study firms. The four Master Board members now voluntarily serve as City Officials and have consistently stated that valid incorporation expenses should be repaid to the Master Association by the city.
This payment analysis process has proceeded slowly. The 2008 Master Association formed an incorporation repayment committee and turned in invoices totaling $193,074.81 to the City in March of 2009. The Mayor asked the current Acting President of the Master Association to turn in a formal request to the City Council for repayment which occurred on July 23rd, 2009. The Mayor set up 3 dates for the Master Board Members and the City Council to meet regarding the request. Two meeting dates were set in May and then canceled because of unfortunate circumstances with not enough attendees for the first date and the passing of the President of the Master Association was cause for cancellation of the second date.
On July 29th, 2009 the meeting was inadvertently advertised to be a public meeting but in reality was set up between the Master Board and the City Council to meet and discuss the repayment request for the first time. The City Council representatives and Master Board members gladly accepted the public input at this meeting and made it clear to the Master Board that the repayment request was being reviewed by both the City Attorney and staff. In order to protect taxpayer dollars, cities in Colorado can only pay bills that are authorized by City Council. The CPN City Council has established a very strict process for bill payment that ensures that taxpayer dollars are spent carefully. Protecting the public does require due diligence and time. A legal opinion was submitted to the City Council on August 13th. A City representative has committed to attend the September 9, 2009 Master Association meeting to report the progress of the repayment request.
At the same meeting the Council representatives asked what are the future plans of the Master Association. Services were reduced in 2007, dues were slightly reduced in 2008? This is great news but the question remains what else can be done to follow the feasibility study based on consolidation of the 29 HOA services and reduction of fees. Other pre-incorporation organizations need to be discussed as well. The future role of the Parks Authority needs to be clarified and direction from the residents needs to be surveyed. The Parks Authority receives 70% of the Master Association dues which is currently building Lagae Park. The Incorporation feasibility study outlined significant savings by reducing HOA fees through consolidation of HOA services and integration of the Metro District. Please send your thoughts to the city at
www.cpngov.com.
The resident who wrote the original editorial that I am responding to is a member of the Hidden Pointe Metro District. Residents of this Metro District currently pay less than CPN Metro District residents for the same services.
Hidden Pointe residents do not currently help fund the maintenance of the parks and open space but enjoy them just the same. If the CPN Metro District integrated with the City the service plan and agreement with the Hidden Pointe Metro District would need to be reviewed to assure all residents pay the same amount for using community amenities and water services. The Hidden Pointe residents do pay a 25% surcharge toward water/wastewater. The 25% surcharge funds the Water/Wastewater Enterprise Fund. Please don't confuse this surcharge as funds toward the maintenance of parks and open space.
Please contact the City Treasurer if you would like information on the current agreement with the Hidden Pointe Metro District and CPN Metro District to understand the difference in funding by the residents. The Treasurer can also explain the potential tax and fee impacts of equalizing payments with CPN Metro District and Hidden Pointe Metro District residents.
doug.gilbert@cpngov.com
Thank you for your attention to this response. I urge all residents to ask questions and seek the truth when reading and visiting about the stability of our fine city. A great deal of positive change is being driven by the City and resident volunteers who really care about the future of our residents quality of life, home investment and future water needs.
Respectfully submitted,
Kim Hoffman
Ward 2 - City Council
kim.hoffman@cpngov.com
(Hoffman has served as a Delegate on CPN II, Board Member of the Master Association, Board Member on the Parks Authority and City Council)