EL RANCHO FLORIDA METROPOLITAN DISTRICT
REGULAR MEETING – December 3, 2009
2010 BUDGET HEARING
The 2010 Budget Hearing for the El Rancho Florida Metropolitan District was held on December 3, 2009, at the Faith Community Church of the Nazarene, at 6:00 PM. The Metropolitan District Board of Directors was all present for the hearing besides the District’s Staff. The Board was pleased to have two Homeowners present, David Shultz and Rex Emenegger, besides the District Board.
The Budget for 2010 was reviewed with a lengthy discussion as to future improvements to the water system of the District. In order to do those improvements the Board is considering a fee increase to cover the cost of match money for grants and loans at a lesser interest rate than imposing a mill levy on all properties of the District through a revenue bond. It is important for the Board to look at what the most cost effective use of money is for the District and how to benefit from the lower cost of doing improvements sooner than later.
It was agreed, by those present, that while a fee increase is going to hard for some homeowners it is prudent to try to obtain the lowest interest rate on money borrowed to do the improvements and repairs. The Board realizes they need to take a proactive approach to maintaining the system rather than a reactive one. General maintenance and repairs currently are covered for the most part through the monthly assessments with a small shortfall. After building the new 158,000 gallon water storage tank, there is nothing left in the reserve for improvements. It is necessary to generate revenue to move forward with needed repairs and upgrades to the system.
David Shultz and Rex Emenegger encouraged the Board to explore what interest rates are available on loans and if there are grants available. Imposing a Revenue Bond at 8% interest is not as wise as applying for grants and lower interest loans around 3% if the money is available.
The Board thanked Mr. Shultz and Mr. Emenegger for their input.
There being no further discussion, the hearing closed at 7:13 PM. With the District’s regular monthly meeting to follow immediately.
REGULAR MONTHLY MEETING – DECEMBER 3, 2009
A regular meeting of the Board of Directors for El Rancho Florida Metropolitan District was held on December 3, 2009, at 7:13 PM immediately following the Budget Hearing. Board members present were:
Steve Swisher – President
John Krispin – Vice President
Tony Rocha – Secretary
David Shipps – Treasurer
Also present for the meeting were Marsha Moreland – Administrator and Ray Smith – Water Operator. The meeting was called to order at 7:13 PM.
A motion was made, moved and passed to approve the minutes of November 4, 2009.
A motion was made, moved and passed to approve the payables as submitted.
Ray Smith reported that a motor and pump had to be replaced at the main pump house costing approximately $3,000. He will be maintaining a lower water level now in the tank to allow for ice buildup and is at 20’ rather than 24’ which is the overflow level.
On Sunday, November 29th, a Schedule 40 pipe split in the main pump house which leaked under the door and sprayed water throughout the pump house. Ray will be replacing it with galvanized pipe.
He stated that he would like to see the amount in the budget for pump replacement at $8,000 annually just in case more than one pump goes out in a year. There was a 34% deviation in the water produced and the amount sold. Water accountable with the leaks and breaks is at 99.9%.
The Board agreed to reimburse David Shultz for the work he did on building a door for the main pump house. He is to submit a bill to the District.
RFP ON WATER SYSTEM STUDY:
Jack is working with the Colorado Rural Water Association on what help can be obtained from them for needed improvements to the system. He will see if a representative can attend the next meeting.
A motion was made, moved and passed to approve the Base Fee increase of $5 for the Water Fund. There followed discussion on imposing a fee increase to the Water Funds Capital Assessment to build the reserve for future repairs, maintenance and improvements to the District’s water system. A $25/mo. Increase would generate just under $90,000/year. This increase will be used for match money needed for applying for grants and low interest loans for needed upgrades/improvements to the water system. Marsha needs to add $10,000 in the Budget for a contract, possibly with David Clerecci, for assisting the Board with pending proposals and construction supervision.
A motion was made, moved and passed approving entering a contract with David Clerecci to do work assisting the District pending his proposal.
A motion was made, moved and passed to approve increasing the monthly Capital Assessment Fee from $30/month to $55/month to all lots in the District.
A motion was made, moved and passed to adopt the 2010 Budget reflecting the increase in fees and expenses as discussed.
A motion was made, moved and passed to adopt the Resolution to Appropriate Funds for 2010 with the Rate Increases discussed.
A motion was made, moved and passed to adopt the Resolution assigning a bank account specifically for Conservation Trust Funds.
Roads will not be bladed until there is more moisture – say about a week after a snowfall.
There being no further business the meeting adjourned at 8:45 PM.
Tony Rocha, Secretary