Residents in Granby Ranch Metro District vote to not authorize unused debt
Kris Ramer/Courtesy photo
Granby Ranch is governed by several metro districts, including the homeowner-run Granby Ranch Metro District. On Nov. 5, residents of this district approved ballot issue 6A that repealed unused debt authorization, according to unofficial results.
The ballot issue passed with 231 yes votes (87.17%) to 34 no votes (12.83%), with 265 homeowners casting their ballots. This is according to unofficial results by the Grand County Clerk and Recorder’s Office as of 11 a.m. Wednesday.
By passing this measure, the metro district board will prevent any unused, previously authorized debt from being used by future boards. The exception to this is refunding existing debt obligations. According to the metro district board, it had $170,186,000 of unused debt, after utilizing some of its debt. Now, the board’s borrowing authority is about $52 million.
What is unused debt?
To fund the build out of developments (such as Granby Ranch), metro districts authorize borrowing of debt. As development progresses, districts use this borrowing power to create and maintain infrastructure. Homeowners pay back this debt over time through taxes.
If the ballot measure had failed, district board members would have been authorized to borrow more money and homeowners living in the district would be saddled with more debt to pay off. This would have increased the district’s current debt to an unsustainable level, according to supporters of the measure.
“As the designated election official for Granby Ranch Metro District, I have no position in favor or against the ballot issue referred by the district board to the voters of the Granby Ranch Metro District. However, regardless of the outcome of this ballot issue, I am pleased that the district board has submitted to the voters and the taxpayers of Granby Ranch Metro the opportunity to discuss, debate and vote on the ongoing borrowing powers of the district. The current borrowing powers of the district were established by the unanimous vote of five voters many years ago. Except in the case of Colorado Metro districts, I’m unaware of elections occurring in the United States where voters have unanimously voted to authorize their government to borrow hundreds of millions of dollars at the taxpayers’ expense.”
The debt authority of approximately $170 million was approved by board members in 2003 and 2004. According to state law, special district voter-authorized debt expires after 20 years. However, the law’s language is not completely clear, according to Granby Ranch Metro District Manager Charles Wolfersberger. The law only explicitly states that debt capacity in the form of general obligation bonds expires. There are other debt instruments other than bonds that could theoretically be used by the board, Wolfersberger said.
The passing of this measure does not restrict the district from utilizing debt for future infrastructure projects. If a future board desires to advance a project that requires debt capacity, then the board can send out another ballot measure in order to raise new debt capacity.
“On November 4, 2003, the District’s four electors (all of whom were qualified to vote by the owner of all land within the District at that time – SolVista Corporation) authorized the District to issue up to $160 million in debt at a net effective interest rate not to exceed 10% . On November 2, 2004, the District’s electors authorized the District to issue up to $48 million in additional debt at a net effective interest rate not to exceed 10% per annum.”
This article contains reporting from Emily Gutierrez. This article will be updated as final elections results are certified.
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