Renewable Water Why You Should Care

CPNMD philosophy has always been to payoff its debt as quickly as possible so that taxes may be reduced. Under CPNMD’s plan, taxes could potentially be reduced in 2013 by 8 to 9 mills due to the early payment of some of the bonds. Additionally, because the debt will have been repaid, the District and its residents should expect to save more than $2.6 million in interest expense or approximately $800 per household. Under the City’s proposed ballot initiative, if it passes a vote of the citizens, and the board of directors of Castle Pines North Metropolitan District elect to educe the current 24 mill levy, the City could then impose an equal and offsetting mill levy. If this were to occur, the District would resort to paying debt according to the payment schedules established by the bonds and taxes could not be reduced until at least 2019. Managing the revenues and expenses of CPNMD, as it relates to the current outstanding bond payment obligations, requires a carefully constructed balance of Fixed and Floating rate debt obligations. Both issuance types have been utilized to better manage the opportunity afforded by such a Financial plan for the longterm renewable water program of CPNMD. Annual prepayment of Floating rate debt allows for the planned insertion of longer term debt after the floating rate debt is prepaid which provides the best leverage for total borrowing cost reductions and debt burden containment. Constructing such a plan has utilized bond insurance and letter of credit support from major banks enabling CPNMD to borrow at the lowest possible interest rates in the market. CPNMD is an efficient operation managing its resources carefully with a low administrative overhead of just 9 people controlling an annual budget of $12 million. Longterm planning has been completed, budget projections have been prepared for the full renewable water plan and CPNMD is well on its way to completing the objectives.

What will it Cost?
tp://www.cpnmd.org/attachments/waterConservation/SpecialMailerOct2008.pdf