CPN Metro District residents can expect a reduction in property taxes in 2003. The Metro District's Board of Directors is proposing to reduce the tax rate by 10%, which would reduce taxes on a $300,000 house by $142.50. This follows a 25% reduction in the Metro District's tax rate for 2002, which saved $476 for a $300,000 home.

The tax reduction is possible because of the dramatic improvement in the District's ability to pay off the debt on the community's water and sewer bonds, which has historically taken the vast majority of Metro District taxes (this year, 62% went toward paying the water and sewer bonds).

• Reducing the debt. Developer fees from new construction in the area have allowed the District to reduce the debt much more quickly than the payment schedule requires. Last year, the debt balance was reduced by nearly $7 million. An additional $4 million will be paid off in 2002. Projections show that the debt balance will continue to drop quickly over the next several years, allowing the bonds to be paid off several years ahead of schedule.
• More taxpayers to help pay off the bonds. The addition of the apartments and commercial properties (which will contribute 20% of our tax base), plus the new homes in the area, mean that there are now more taxpayers contributing to the bond payments, thus each homeowners' taxes can be reduced.

The District's solid financial condition is in sharp contrast to the community's early years, when a few hundred homes had to carry the burden of the entire water and sewer system bond debt. In 1988, the debt was about 3 times the value of CPN's properties, resulting in high taxes for each homeowner. The turning point came last year, when the community's assessed value (tax base) exceeded the debt balance, and the tax base is continuing to increase each year.

See Graph 1 for a graph that compares the tax base and water/sewer debt balance for past years, along with projections for the future, and Graph 2 for an illustration of what this means to the owner of a $300,000 home.

The actual tax rate for future years will be set each year by the Metro District Board during its annual budget cycle, based on the actual property values as calculated by the county. This process is currently under way for 2003. The County submitted property values in September, allowing the Metro District to propose the mill levy that would be required to pay the water and sewer bond debt. The Metro District will use these numbers in the draft budget, which will be presented to the Board in October; public input is taken in November. The tax amount is certified to the Douglas County Assessor in December.

Area residents received a mail-to flyer asking CPN to reduce residential water use by 10 percent to assure water storage tanks maintain safety levels required for fire protection. Effective immediately.

The District faces an urgent need to reduce water use. If the 10% reduction is not acheived, "the Board may be required to adopt and enforce mandatory watering restrictions".

The flyer directs users to these online sites
www.greenco.org
www.ext.colostate.edu/pubs/garden
for more detailed landscape management info in drought conditions.

How you can reduce outdoor use is in the gardening section of this site

There has been some confusion among residents about an article entitled "Tax Rate Reduced." That article reported that the CPN Metro District had reduced the property tax rate by 25%, and gave an example of the impact of the rate reduction, using a home valued at $300,000.

Now, residents have received their property tax statements for the Year 2002 and have asked why their tax bill did not match the formula specified in the story.

The reason for that is your actual tax bill reflects the combined effect of the tax rate as well as the assessed value of your home.

Every two years, the Douglas County Assessor re-assesses the value of your home, as required by Colorado law. 2001 was a reassessment year. Happily, our homes' values have been increasing, which is a good thing-in almost all situations except tax bills!

The example cited in the last issue calculated the savings assuming the same home value both years. When you compare your actual property tax bills for 2001 and 2002, you will note that you home value has increased. If the Metro District had not reduced the tax rate, you would have had a tax increase due to the higher property values. But because the tax rate went down by 25%, most homeowners will find that this more than offset the property value increase, and their Metro District tax dollars are lower in 2002 than they were in 2001.

In fact, most homeowners will find that their total tax bill for 2002 is lower than in 2001, despite the home value increase. The Metro District's tax reduction was large enough to offset the effect of the property value increase on the tax dollars for the other major government units, such as Douglas County and the School District.

The Metro District was able to make this significant tax reduction because of the District's improving financial picture, as noted on page 16. The District's Board of Directors has indicated that they intend to continue their efforts to improve the District's finances, which would then allow further reductions in the tax rate, as well as the District's debt.

If you would like more information on this subject, please contact CPN Metro District Manager Judy Dahl at (303) 688-8550.

Castle Pines North Homeowners Association
Copyright © 1999-2003 Castle Pines North Homeowners Association
All rights reserved.

Telephone and Fax:
303-482-3078

Address:
CPN Association, Inc.
7402 Yorkshire Drive
Castle Rock, Colorado 80104

Contact the Castle Pines North Homeowners Association (CPNHOA) by e-mail.