In your February water bill for January usage you may have noticed an increase in the Capital Improvement Fee over the prior fee. This increase was approved by the Board of Directors as part of the 2007 annual budget for the Castle Pines North Metropolitan District.

The overall purpose of the Capital Improvement Fee is to help fund the purchase of renewable water and the associated infrastructure needed to deliver this water to Castle Pines North residents. The fee has been in place since May of 2005. During that time District residents have contributed nearly $950,000 to this fund. In the future the income generated from this fee will be used to issue bonds that will be needed to transition Castle Pines North from Denver Basin groundwater to a renewable surface water supply.

Currently, the District is in negotiations to purchase renewable water. The District is also looking at purchasing storage space for water in both Chatfield Reservoir and Reuter-Hess Reservoir. In addition to the water rights and storage facilities being pursued, the District will also need to invest in the construction of water pipelines and surface water treatment plants.

Unfortunately, the exact timing for when these projects must be paid for cannot be determined. However, it is the District’s belief that if the necessary bill increases are spread out over time, it will reduce the possibility of “sticker shock” to customers.

Castle Pines North is one of many utility companies that have implemented a capital improvement fee. The Town of Castle Rock implemented such a fee in 2006. East Cherry Creek Valley District put such a fee in place several years ago to fund the installation of a pipeline, which became operational in July of 2006.

The Board of Directors and the District staff believe that acquiring renewable water resources is the number one priority for the District. This fee goes a long way toward securing water for this community for many years to come.

Please call our office at 303-688-8550 with any questions or comments regarding this fee, your water bill or any other aspect of the District’s operations. You may also visit our website, www.cpnmd.org, for the latest information about the District.

Sincerely,

James McGrady
District Manager