Posted on June 3, 2020
From the District Manager:
At the April Board of Director’s meeting, the Board decided to delay any decisions pertaining to the relocation of the office to Forest Lakes subdivision. However, I firmly believe that the reason the voter’s voted against this ballot initiative (only by 42 votes) was because the total cost of $455K was too high. As you recall, this total cost included the construction of the office space, and the 2 additive alternates for the Board meeting space and solar. From the District’s and other’s perspective, we feel that this initiative deserves to be revisited because we have spent and will continue to spend thousands of dollars to lease a building that we do not own. This just does not make good financial sense! I believe there are members of the Board that agree with this, but I will present this to the Board on June 9th at 7:00 pm via Zoom. We have an opportunity for the residents to again vote on the financing for the office relocation at the November 3rd General Election. Only, this ballot initiative will only include the financing for the office space only! Here are a few of the details, but we invite you to review the package showing the floor plans, exterior elevations and perspective drawing, costs spreadsheet and the projects that show when the lease costs will exceed the mortgage costs, Pros and Cons and proposed ballot:
- The total cost of a 1,600 square foot turn-key office space would be $376K.
- The proposed monthly mortgage will be $1,781, which is only $122 higher than the current lease cost of $1,659.
- With all utility costs, insurance and building maintenance costs included, the total monthly cost in the mortgage scenario will be $2,633. This is only $233 per month higher than the lease cost of $2,431. The additional costs will be taken care of in our existing operational budget.
- The District has paid literally hundreds of thousands of dollars in lease costs since its incorporation in 1973. We have already purchased more than 2 office spaces!
- Given a 3.5% inflation, our current costs with our lease would exceed our mortgage costs in less than 6 years. Put another way, it does not make sense to lease knowing it will be more expensive that a mortgage!
If the Board concurs with the residents voting on this ballot initiative again on November 3rd, you will once again see TABOR notices and a ballot mailed to your house in the September/October timeframe. Any questions can be referred to the District office at 884-2925.