[Board] FW: Arguments for and against

Marcus McAskin mmcaskin at wmcattorneys.com
Fri Sep 19 16:04:54 EDT 2014


All:

Below are the For and Against arguments that have been sent to the DEO. Thanks Keith for your help in getting this pulled together.

At this point, we anticipate that the TABOR notices will be mailed on Friday, October 3rd and the ballots will be mailed on Friday, October 17th.

I have spoken with the Clerk at CHV and the Village Center is available on Wed, October 15th for a neighborhood meeting (7-8pm).

I propose that we schedule a special informational meeting on that night, and pass out additional flyers to the neighborhood with a “factual summary” as allowed by the FCPA and advising the neighborhood that the Board will be available to answer questions regarding the ballot issue at the October 15th meeting.

Flyers to be distributed the weekend of October 10-12. Sound like a plan?

Marcus



From: Marcus McAskin
Sent: Friday, September 19, 2014 1:56 PM
To: 'Sue Blair'
Subject: FW: [Board] Arguments for and against


Arguments For
The District has provided vital sewage service since the inception of Cherry Hills North. The District inspects the main lines on a regular basis, removes obstructions, replaces or repairs damaged main lines on an as-needed basis, and implements other preventative measures when appropriate.  In addition, the District has agreements with neighboring Districts for regional outfall lines and pays annual treatment fees to the Metro Wastewater Reclamation District for sewage treatment costs.
Adjusted for inflation, the District collects far less tax revenue on an annual basis now then when the Cherry Hills North neighborhood was new (back in the mid 1970’s and early 1980’s).  The District’s costs have increased – while tax revenues have declined.  This is not a sustainable model.  The District needs to be proactive in order to ensure that our sanitary sewer infrastructure remains in top operating condition and able to serve the neighborhood.
The District’s continued responsibility requires closing the current existing gap between revenue and expenses.  District revenues have decreased due to multiple factors including substantially reduced investment income.  The District’s fixed annual expenses have increased in recent years and are projected to continue to increase.

All members of the Board of Directors of the District are residents of Cherry Hills North.  The Board has the best interests of the community in mind.   In addition, the Board of the Cherry Hills North Homeowners Association unanimously supports the proposed tax increase.

2.     The District has historically been funded by a mill levy that is tax deductible to the residents, and has virtually no collection overhead.  The proposed increase in the mill levy will result in a net increase to residents of approximately $22/month.

3.     The District is obligated to close the revenue gap. Most Districts employ a user fee model, which results in higher overhead and the resulting monthly, quarterly or annual fees are not tax deductible. A failure to raise the mill levy to a level sufficient to cover annual expenses will result in user fees being imposed.
The proposed tax increase is designed to ensure that the District is able to meet annual expenditures with annual revenues in order to continue providing important services to the neighborhood without continuing to deplete the District’s existing cash reserves.  The District’s cash reserves must be maintained in order to make sure that the District is able to implement its annual maintenance and long range capital improvement plans.
For background about the District, finances, and document archive see: http://chnorthmetro.us/
Argument Against


1.      Most Districts employ a user fee model, wherein residents that are served by the District receive a monthly, quarterly or annual bill. The mill levy approach results in very modest tax savings to residents and the cost of elections is nontrivial. The residents of the District would be better served by adopting a user fee model.
With user fees, the fees can be increased or decreased by the District on an as-needed basis to cover expenses.  User fees do not require a vote of neighborhood residents.  Increasing the mill levy in the future will require an additional vote of the neighborhood.   Instead of being asked to vote on future tax increases, the neighborhood can and should rely on the Board of the District to set the fees at a reasonable level.


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