Founders Village Metropolitan District

Special districts are tasked with some of the most essential and demanding needs of the communities they serve. Development of the annual budget is more than just number crunching; it reflects a strategic plan and should consider the needs and priorities of all stakeholders. A budget for each special district is required to be submitted to the Division of Local Government on an annual basis. The budget must contain revenues, expenditures, and fund balances. A draft budget must be presented to the board of directors by October 15th. A budget hearing is set for public comment thereafter. The budget document must then be adopted by December 15th and submitted to the Division of Local Government by January 31st of the budget year. Special district budgets are available for review at the office of the special district, or at the Division of Local Government's Denver office.

We look forward to assisting your board with the 2024 budget! Please keep an eye out on the district’s website for the Budget Hearing date. It will be posted in the Governance section under 2023 Meeting Notices and also included in the News section.

On May 24, 2023, Governor Polis signed House Bill 23-1105 into law, which, among other actions, created the Metropolitan District Homeowner’s Rights Task Force (“Task Force”). The Task Force will review, among other matters, tax levying authority and practices, foreclosure practices, communications with homeowners and governance policies. All members of the Task Force will be appointed by November 1, 2023. A requirement of the new law is that we notify you of the creation and existence of the Task Force prior to its first meeting. If you have any questions about the Task Force, please reach out to the Colorado Department of Regulatory Agencies or visit their website at https://dora.colorado.gov.

Colorado has been getting above average rain this spring/summer, which is great news. More rain means less watering! However, that does not mean the District’s sprinklers will be off during those rains. The irrigation systems are equipped with Smart Sensors that detect precipitation. Once the rain accumulation hits a preset depth, the system will turn to an automatic 2-day rain delay. This means that the irrigation system could be running while it’s raining until the preset depth is triggered on the sensor.

How do I report broken sprinkler heads? Please email the District email at info@foundersvillagemd.live with location of head and photo if possible.

How do I report irrigation emergencies? Call 970-669-3611

Do you see dead or dying trees on District property?

• The District is in coordination with the contracted landscaper to identify struggling and dead trees for inclusion on a watch or replacement list. The health of trees on the watch list will be continuously monitored.
• Orange ribbon indicates a tree on the health watch list and red or pink ribbon will indicate a dead tree in which replacement is necessary. Dead trees will be removed in the months of July and August.
• Tree replacements are addressed in the fall months to promote root establishment and survivability per industry standard practices. All tree removals and replacements are aligned with the adopted annual budget as approved by the Board of Directors.

The Villages at Castle Rock Metropolitan District No. 4 (“District 4”) and the Founders Village Metropolitan District (“Founders District”) are quasi-governmental entities organized in 1984 under Title 32 of the Colorado Revised Statutes. The Founders Village Planned Unit Development (“PUD”) was annexed and zoned in 1983, in a period when the Town of Castle Rock (“Town”) was unable to fund or construct major infrastructure and water / wastewater facilities and capacities. The Town authorized the formation of Metropolitan Districts to provide vital services and construct municipal facilities. The Town approved the District’s initial Facilities Plan and both Parties executed a series of Intergovernmental Agreements (“IGA’s”). In 1995 the Town approved District 4’s updated Service Plan and executed a Master Intergovernmental Agreement (“MIGA”), consolidating all previous commitments. In 2006 the Town approved an amendment to the Service Plan, expanding District 4’s operations and maintenance responsibilities. Since 1986, the Town has also authorized Metropolitan Districts to serve Castlewood Ranch, The Meadows, Crystal Valley Ranch, Maher Ranch, Cobblestone Village and Castle Oaks (Terrain). These Metropolitan Districts perform similar functions, but are not financially affiliated.

District 4 functions as the “Lead District”, constructing major infrastructure, servicing its $26 million bond debt, and maintaining those facilities not conveyed to or maintained by the Town. The Founders District (and ultimately District 9) collects Property Taxes and System Development Fees, and transfers all revenues to District 4. District 4 has engineered and constructed major capital improvements, funded from original Bond Funds and with System Development Fees paid by homebuilders. Property Tax revenues from the Founders District (and ultimately District 9) fund District 4’s administrative, legal, financial, insurance, operations and maintenance activities first and the balance of property tax revenues fund semi-annual debt service payments to the Bondholder Trustee.

In 1985, District 4 issued Revenue Bonds ($32.2 million) to finance major infrastructure serving Districts 1, 7 and 9. By 1988, declining home sales (and the related development and S & L banking collapse) constrained District 4’s ability to fund the semi-annual Debt Service to its Bondholders. By 1989, District 4 petitioned for Chapter 9 Bankruptcy protection. By summer 1991, the District and its Bondholders negotiated terms for a Debt Restructuring Plan (“Plan”). In December 1991, the Plan was approved by the U.S. Bankruptcy Court and the District issued new Exchange Bonds. District 4’s total Bond debt was reduced to $26.0 million and many Exchange Bonds were subsequently purchased by individual bond investors, at significantly-discounted prices. The Chapter 9 Bankruptcy Plan and its governing contract (Bond Resolution) required increases in the Property Tax Mill Levy from 32 mills (1991) to 37 mills (1996) and ultimately to 42 mills (2001). The District provides regular reporting and financial disclosures to the Trustee and to the six (6) largest Bond Holders. In compliance with the Colorado’s Gallagher Amendment, the District’s property tax mill levy has been adjusted and increased since 1991, to its current mill levy of 87.314 mills. Per the Chapter 9 Bankruptcy Plan, the Founder’s District mill levy and annual budgets are exempt from the Colorado Taxpayer’s Bill of Rights (TABOR). District No. 9 (206-acre Memmen Properties) is currently undeveloped and inactive. Once purchased and entitled, District 9’s Board of Directors must be reconstituted and the District made State-compliant. District 4 shall negotiate an amended or restated Intergovernmental Financing Agreement with District 9. In 2014, District 4 filed a complaint for Declaratory Relief, in strong opposition to the State’s Petitions to Dissolve District No. 9. The District prevailed and the state withdrew its Dissolution Order.

District 4 is empowered to fund, design, construct and / or acquire major public infrastructure and utility capacities to serve the Founders District, District 7 and District 9. A detailed summary of all Capital Improvements expenditures is available upon request. District 4 is not empowered to fund infrastructure benefiting other communities, unless by special Intergovernmental Cost-sharing Agreement. To date, District 4 has constructed the following public facilities:

• Arterial and Collector Street Improvements
• Regional Storm Drainage Facilities
• Water Systems (Supply / Treatment / Storage / Transmission / PRV’s)
• Wastewater Systems (Interceptors / Treatment / Lift Stations / Force Mains)
• Recreation Facilities (Parks / Pools/Trails/Open Space/ Community Center)
• Entry Monuments / Streetscaping / Irrigation Systems / Perimeter Fencing

Upon Final Acceptance, District 4 conveys the constructed public infrastructure (streets, water, sewer and storm drainage facilities) to the Town of Castle Rock. From 1998 to 2003, the Founders Village Master Association (“Association”) controlled and maintained the Founders Village entry monuments, streetscaping, irrigation systems, and community fencing. In 2003, District 4 assumed these operations and maintenance obligations from the Association.

District 4 and the Founders District (“Districts”) were originally organized and directed by the master developer of Founders Village (Park Funding Corporation).The Owner / Developer controlled the Board of Directors of both Districts until approximately 1992. By 1998, Board control shifted to the homeowners (3 of 5 seats). By 2001, the Board of Directors was 100% controlled by property owner / residents. The current Directors are:

Member: Office: Term Expires:

• Jeremy Groves
  • President May, 2026
• Patrice Neef
  • Vice-President May, 2026
• Mike Meachum
  • Assistant Secretary May, 2025
• Matt Hilinski
  • Assistant Secretary May, 2023
• Mary Cates
  • Assistant Secretary May, 2023

The Districts retain O. Karl Kasch as District Manager, PCGI as Administrator/Secretary, Matt Ruhland as General Counsel and Cathy Hamilton as Accounting Manager. The Districts also engages other planners, civil engineers, surveyors, geotechnical consultants, financial advisors and special legal counsel, on a project-specific basis.

From 1986 to the present, District 4 has constructed or jointly-funded the following Capital Improvements, designed to serve the projected buildout in the Founders District, District 7 and District 9. The original Bond Funds and System Development Fees funded these public facilities. Since the 1991 Chapter 9 Bankruptcy, only Development Fees have funded Infrastructure or Capital Construction. At such time that District 9 is re-activated and developed, District 9 shall reimburse District 4 for all facilities and capacities built to date, to serve future development in District 9.

Arterial and Collector Street Improvements $8,975,000

Regional Storm Drainage Facilities $2,855,000

Water Supply, Treatment, Storage & Transmission $17,950,000

Wastewater Interceptors, Treatment & Liftstations $8,600,000

Recreational Facilities, Parks, Pool and Trail Systems $4,225,000

Entry Monuments, Streetscaping, Irrigation & Fencing $7,400,000

Total Infrastructure Constructed through 12/31/14: $50,005,000

In 2009, District 4 funded $1,032,000 for construction of the 30-inch Ridge Road Water Transmission Main (Phase 3). District costs were allocated based upon demand and peak- day flow. The Water Transmission Main serves the current and future users in the Founders District, District 9 and District 7.

In 2010, the Town and District 4 funded and constructed Water Storage Tank 6-C (2.2 million gallons). The Tank construction totaled approximately $1,950,000. District 4 managed the 2009-2010 Program for both Parties with construction draws funded through an Escrow Agreement.

In 2014, District 4 constructed the Filing No. 16 Streetscape and open space Improvements abutting Heritage avenue and West Mitchell Creek. In 2017, District 4 constructed the enhanced Phase 5 Streetscapes and Fencing approaching Ridge Road. District 4’s Street and Utility Improvements are designed, constructed, inspected and conveyed in compliance with the Town of Castle Rock’s engineering design criteria and current Public Works Standards. The District’s Street scape standards exceed the Town of Castle Rock’s design standards.

By 2003, the Homeowner’s Association was unable to finance the ongoing and future maintenance of the Streetscaping, the Irrigation Systems and the Community Fencing in Founders Village. The District assumed the Operation and Maintenance obligation and pledged to maintain (and enhance) property values and community amenities, through the phased modernization and rehabilitation of the District’s streetscaping, irrigation systems and community fencing. In 2006, the District’s Service Plan was amended for these increased maintenance obligations. District 4 currently maintains the major and minor Entry Monuments including landscaping, irrigation, signage, and lighting. The 3 Monument walls were rehabilitated in 2005. The entry landscaping and irrigation are enhanced annually since 2012.

District 4 maintains all Trailheads for the PSCo Open Space and for the Mitchell Creek Trail System. The Town maintains the trail networks and the major open-space parcels in Founders Village. All other “breezeways”, tracts, and select access / utility corridors (53 total) are also maintained by District 4.

District 4 owns, operates, maintains and upgrades the extensive irrigation systems, turf, plantings and trees (“Streetscaping”) along Enderud Blvd, Lantern Trail, Mikelson Blvd. and Heritage Avenue.

District 4 controls, repairs and maintains over 118,000 lineal feet of Boulevard Fencing, Open Space Fencing and 3-Rail Fencing in Founders Village. District 4 recently completed Phase 8 of a multi-year Fence Replacement Program, totaling approximately $2,800,000 at completion. The District has long-term budgetary obligations to regularly repairs and restain the new fencing. The District has also amended its Rules and Regulations to protect the fence assets and to cite violators who deface, damage, or alter the District’s Boulevard and Open Space Fences.

District 4 continues to modernize the extensive streetscape irrigation system, to comply with the Town’s strict Water Conservation Ordinance. District 4 has vastly improved the overall efficiency of its streetscape irrigation systems. District 4 has implemented a Long- Range Water Conservation Plan and has regularly out-performed the Town’s annual Irrigation Water Budget and all other “large irrigators” in the Town of Castle Rock.

In 2002, District 4’s Board of Directors reinforced their publically-stated goal to use their “best efforts” to refinance the 1991 Bonds or to reduce the property tax burden on Founders Village’s property owners.

Since 2002, the Board of Directors have received two (2) independent Legal Opinions confirming that District 4 cannot re-open the Chapter 9 bankruptcy case, and cannot force a refinancing upon the existing Bondholders.

In 2004, District 4 independently solicited Bondholder input to explore a Bond Tender Offer and a Debt Restructuring. Those discussions with Bondholders proved unsuccessful.

District 4 will continue to use its best efforts to reinforce property values and to modernize and maintain the District’s facilities. District 4’s Operating and Maintenance budgets have increased since 2003, funded exclusively from Property Tax Revenues. With the recent economic downturn and a $5.0 million decrease in Assessed Value, debt service payments to the Trustee, decreased from $2,200,000 to current $1,950,000 per year. Since 2016, overall property values (and property taxes) have increased significantly. The District utilizes a portion of the annual tax revenues for operations and maintenance, while debt service payment has increased to $2,800,000.00.

Residents should direct any inquiries or comments to the District Manager or the Administrator/Secretary as follows:

Cimarron Consultants, Inc.
O. Karl Kasch
Phone: 303-790-4845
Email: vcrmetro4@cimarronla.com

Any issues regarding Trash Services, the Pool, Community Covenants, the Clubhouse, Social Events and HOA Assessments should be directed to the Founders Village Master Association at 303-224-0004 or by email at corpoffice@pcms.net. Homeowners can access the HOA’s Website at foundersmasterhoa.com. The monthly calendar of HOA events is accessible on the HOA website!

Any issues regarding street maintenance, snow plowing, open space, sidewalks, trails, Mitchell Gulch Park and Founders Park, should be directed to the Town of Castle Rock. Specific Town Departments can be contacted through the Town’s website at www.crgov.com. Residents can directly contact the Street Department at 303-660-1020 and the Parks and Recreation Department at 303-660-1036.

Any issues regarding municipal water, wastewater and storm drainage services should be directed to the Town’s Utilities Department at 720-733-6000

The Colorado Open Records Act (“CORA”), sections 24-72-201 to 206, C.R.S., requires that individuals desiring a special district’s public records contact the district’s official custodian to acquire the requested information. § 24-72-204(1), C.R.S. Please click the link below to fill out and submit your CORA request.

Below you’ll find links to external Special District Education resources. We’re also happy to assist you with any questions you may have. You can contact us by visiting the Contact page in the header navigation bar

Special District Education Coalition