2012 Budget - South Suburban Parks and Recreation

South Suburban Park and Recreation District
Profile of the District
Long Term Financial Planning
In 2012, the Finance Department updated the five year financial forecast. These updated
projections were based on historical trends, actual data, and certain assumptions for the
future. The plan assumes there are no major catalyst events over the next five years. This
Financial Forecast concluded that the District will have depleted its unreserved cash balance
by 2014, without considering any capital projects out of operations. The forecast also
concluded that if the District cannot increase revenue by adding new programs or increase
fees on existing programs, continue to use Cherry Hills funds (settlement from exclusion
from our District) to help fund maintaining what we have, and continue to use the new 2010
1 mill tax for maintenance of parks and trails, the District may have to consider cutting
services that our citizens have become accustomed to. The Executive Summary for the
forecast is included in the appendix section of this document.
Currently there are several issues that may affect the long term position of the District. On a
positive note, the 1 Mill open space tax was extended another 10 years by the District’s
voters in May 2010 (approximately $2.4 million per year). The scope of this tax was also
expanded to include maintenance on Parks and Trails. The District’s assessed valuation
decreased 6.1% for 2012, which decreases operating tax revenue $552,000. We anticipate
assessed values to remain effectively the same for 2013. However, Greenwood Village
exclusion will decrease property tax revenue an estimated $300,000 in 2013. The counties
are more than half way through the reassessment evaluation period for tax collections in 2014
and 2015. Current property values have not increased significantly, which means tax revenue
may not increase for the next four to six years. District staff is continually evaluating and
monitoring this and other issues that may affect the future of the District.
City of Cherry Hills Village Exclusion
On December 28, 2004 the District Court issued an order directing the exclusion of the City
of Cherry Hills Village (CHV) from the District effective January 1, 2005, subject to certain
conditions. After that date, CHV residents ceased to enjoy resident access and fees at
District facilities and the District ceased to maintain parks and trails in CHV. The Court
ordered CHV to reimburse the District $9,660,838 for physical assets owned by the District
within CHV and to compensate the District for economic “harm” created by the exclusion.
CHV was ordered to make principal and interest payments of approximately equal amounts,
modified to reflect changes in the interest rate beginning December 1, 2005 (interest only)
and ending no later than December 1, 2019. Interest is to be calculated for each payment
based on the interest rate of the two-year U.S. Treasury Note as of November 15 of the
preceding year. CHV residents are to remain liable for the District’s debt service mill levy
applicable to any general obligation debt outstanding or any subsequent refunding of such
debt at the time of exclusion.
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