SOUTHSHORE METROPOLITAN DISTRICT
2025 Budget
Every year, the Southshore Metro District Board crafts a budget that prioritizes responsible management of our financial resources. Their commitment to ensuring that every dollar is handled with care is at the heart of their mission. This process involves assessing the costs of essential services, maintenance, and improvements while maintaining adequate reserves, all aimed at enhancing the quality of life for our residents. By forecasting and prioritizing expenses, the board balances maintaining high standards while managing costs effectively. Here, you’ll find information on the 2025 budget and how it impacts District revenues, community operations, and community improvements. We encourage all residents to stay informed and engaged in this vital process that enhances the long-term health and enjoyment of our community.
Revenue Considerations
The funding mechanism for 2025 will remain unchanged from 2024. Property taxes will continue to be the primary source of funding for operations and debt service. A resident survey conducted in the fall of 2024 shows strong support for using property taxes as the main funding source.
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The District assumed operations in 2024. After a full year of managing services and cutting excess costs, we now have a clear understanding of the revenue requirements necessary for effectively operating the community. As a result, we have reduced the General Fund Mill Levy. The estimated Mill Levy for 2025 is 65.891, which represents nearly a 5% decrease from 2024.
Temporary Mill Levy Reduction
In 2023, forecasting property tax revenues for 2024 became challenging due to several factors. First, the District took on the responsibility for operating its facilities and common areas. Second, the County Assessor's bi-annual assessment revealed historically high property values. Finally, after a failed ballot initiative, the Colorado legislature set the assessment rate in late November, introducing a price reduction for homes for the first time.
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In 2024, the district experienced several fortunate events in its operations:
1. The district successfully completed a competitive bidding process for management and landscaping services, resulting in costs that were lower than expected.
2. The State of Colorado granted the district over $108,000 due to an adjustment in the property assessment rate.
3. The district received higher-than-anticipated interest income, which is expected to exceed $400,000 by the end of 2024, thanks to rising federal interest rates.
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Because of the additional revenues, lower operating expenses, higher interest income, and other obligations, the District approved a one-time Temporary Mill Levy Reduction. This reduction is estimated at 4.245, which would further lower the overall 2025 Mill Levy to 61.646, an 11% decrease from 2024.
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The Temporary Mill Levy Reduction is for 2025 only. Property owners should not assume there will be a reduction to their 2026 Mill Levy.
Actual property taxes depend on each property's appraised value as determined by the Arapahoe County Assessor. For this analysis, we are assuming a home with an appraised value of $900,000 for both 2024 and 2025.
The primary goal of the Southshore Metro District has been to reduce costs for property owners while maintaining a resort-style living experience. In the example above, a home would have paid approximately $4,500 to the District and Master Association combined in 2023.
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With the District assuming responsibility for operations and maintenance in 2024, new efficiencies have been achieved. Under the approved 2025 District budget, this home would pay approximately $3,850—a reduction of nearly 15%.
How Do We Compare?
2025 Southshore Estimated based on 2025 approved Mill Levy of 61.646
For nearly two decades, many communities have transitioned their operations and maintenance responsibilities to their Metro Districts, taking advantage of the unique benefits this approach offers. Southshore is among the last communities in Southeast Aurora to make this shift.
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With the transition completed in 2024, Southshore's estimated average cost per property owner has decreased. However, it remains higher than that of some neighboring communities. This is largely due to Southshore Metro District following the bond agreement maturity schedule that pays more toward debt principal then our neighboring communities. In 2025, Southshore will increase our debt principal payment by $220,000 which represents a 15% increase over 2024.
How Do We Compare Before Debt Service Payments?
2025 Southshore Estimated based on 2025 approved Mill Levy of 61.646
Each community has its own unique debt obligations. When comparing Southshore to communities without any debt, our operating and expense budget is surprisingly close.
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Taking into account Southshore's facilities, programming, amenities, and dedication to addressing deferred maintenance, it becomes clear that Southshore operates in a highly comparable environment.
Operating Expense Considerations
The year 2025 marks the first full year of operations since the District assumed responsibility for its facilities, parks, and common areas. The 2025 budget was based on actual expenses and budget data from 2024.
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In 2025, the District will continue services such as street plowing, pond maintenance, and safety and security measures, in addition to regular landscaping and facility maintenance programs.
The District will also complete the four-year cycle of fence repairs and staining in 2025, with plans to restart the cycle in 2026.
Reserve Considerations
Reserve funds are set aside for planned future expenses. In 2025, the District will conduct a capital replacement assessment to evaluate the adequacy of its capital replacement plan and reserves.
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These reserves allow the District to cover expenses without affecting daily operations.
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Reserves are necessary only for organizations with ownership or contractual obligations.
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The District’s 2025 budget projects an ending reserve balance of $1,535,800.
Capital Project Considerations
In late 2024, Southshore Metro District was notified that the City of Aurora would be refunding $180,000. These funds were originally held as collateral for any necessary warranty work on the build-out of public infrastructure. The warranty period has since expired, and the funds were not needed.
Because these funds were initially provided to the City through General Obligation Bonds, they must be allocated to new projects. Southshore Metro District has not made a decision on specific uses for these funds, but the plan will include engaging our committees and residents in the decision-making process.
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A 2024 resident study supported the Southshore Metro District's improvements in the Lakehouse. In 2024 and 2025, the Lakehouse will be completely repainted inside, repairs and replacement of the back deck and stairs, pool resurfacing and new pool heater.