MCA Meeting Recap: August 2021
Meeting Introduction
One of the main income drivers for the Central Park Master Community Association (MCA), which oversees the community’s pools and parks, are the public pools that charge an entry fee to residents and non-residents alike. Thanks to a robust swim season, the MCA is rebounding quickly from a drop in revenue amid the COVID-19 induced recession.
Note: To learn more about pool attendance numbers, and the benefit of additional funding to increase staff levels, please see the heading, Pool Updates, further down in this message, thank you.
While residential and commercial assessments are lagging, due to the slow roll-out of Filing 57 (North End) amid ongoing construction labor and supply shortages stemming from COVID-19, revenue is projected to increase through July and August, boosting the third quarter (Q3) numbers, which will help the MCA meet its target budget for the year.
Not running the MCA’s annual beer festival reduced expenses, and consequently more money than expected has been moved into the reserve account, the community’s savings fund, which was accessed last year to cover a budgetary shortfall due to COVID-19 related costs, e.g., pool closures resulting in lost revenue, etc.
The last reserve study, a formal report detailing the amount the MCA should set aside to stave off special assessments (non-negotiable fees paid by property owners) was completed several years ago, and the next will be done when the last parks are completed in approximately a year from now.
Note: In many respects, a homeowner association’s (HOA) reserves are akin to a household savings account, and a special assessment is similar to an insurance deductible. For instance, if a hail storm damaged a person’s house, he or she would likely have to make copayment for a new roof. So, just as it is prudent for homeowners to stock away money in a rainy-day fund, so is it advised that HOAs, such as the Central Park MCA, prepare for unexpected expenditures. A reserve study, as the name implies, is a formal assessment (audit) by an outside agency (third party) that helps HOAs plan and prepare for inherent maintenance, both expected and unexpected.
Parks Updates
Filing 54 Parks are being transitioned to the City of Denver. The large sports park in the North End will likely transfer in Summer 2022. The parks along 59th, as well as those that go down Galena, are under MCA control.
Financial Audit Update
Due to a “glitch” in the MCA’s audit, requiring the receivable portion to be reconstructed, a six-month process detailing information back to 2002, e.g., assessments, etc., the audit results have been postponed until the next MCA meeting in September.
Park Creek Metropolitan District (PCMD)
If you received a letter in the mail speaking to a dispute between Westerly Creek (Community Taxing District) and Park Creek Metropolitan District (Developer District), a message that announced an August 11th meeting to address the two parties’ differences several days after the meeting took place, and have questions, you are not alone.
At the last MCA meeting on August 18th, I requested both parties come together before the MCA Board of Directors and Community Delegates so the Presidents of each board, Westerly Creek and Park Creek Metropolitan District, could openly express their views and answer questions from those who represent the Central Park community.
Westerly Creek & PCMD Overview
Simply put, the Westerly Creek Board of Directors (BOD) receives and allocates tax based (Mill Levy) funds, collected by Central Park property owners, to the Park Creek Metropolitan District (PCMD), who uses the resources to develop and maintain infrastructure in the Central Park community, e.g., roads, bridges, etc.
Follow Up to PCMD Letter (King Harris)
On Wednesday, August 18th, immediately after the MCA meeting adjourned, I placed a call to Westerly Creek BOD President, Justin Ross, and PCMD BOD President, King Harris, seeking insight into their seemingly disparate points of view, and promptly received a call back from Justin, at which point I brought my Beeler Park counterpart, Shalise Hudley-Harris, on the line to discuss the issue.
If you do not know Shalise, she is both a Community Delegate, serving District 10, Beeler Park, and an MCA Board Member, representing the Central Park community at large. Shalise also works as an auditor for a major healthcare provider, and asked a number of insightful questions during our joint call with Justin, who thoughtfully addressed our queries.
For reference, Shalise and I also serve on Central Park United Neighbors (CPUN) Diversity Equity & Inclusion (DEI) committee, with Shalise acting as the board’s co-leader alongside Mandle Rousseau, a dedicated neighborhood advocate for social justice and other pertinent issues.
Westerly Creek Board President (Justin Ross)
As Justin explained to Shalise and I, the same people used to comprise the Westerly Creek BOD and the PCMD BOD, which made for an easy, if not cozy, relationship between the two groups, but as the respective boards diversified in recent years, which is healthy, the relationship frayed.
As it now stands, the two boards are comprised of entirely different people, and as Justin put it, the Westerly Creek BOD is fighting for transparency in the refinancing process for, as it stands, its members are, by Justin’s account, “shut out of executive sessions,” closed door meetings held by PCMD.
While it is standard operating procedure for homeowner (HOA) boards to hold executive sessions, the Westerly Creek BOD wishes to ensure that Central Park is “receiving fair representation for its taxation,” e.g., the Mill Levy residents pay, and has faced what Justin describes as “repeated obstacles” in seeking insight into PCMD’s refinancing processes.
While there are outstanding questions for both parties, both board presidents, the crux of the matter is refinancing debt and the purported lack of transparency behind the process. For Justin, it is important to know who is seeking to service the debt, i.e., “who is applying for the lucrative contract,” and frankly, Shalise and I are curious too.
Again, as Justin put it, “when a person seeks to refinance his or her home mortgage, he or she typically shops around for the best rate, and the Westerly Creek BOD simply wants to ensure the same process is taking place for Central Park.”
To this end, the Westerly Creek BOD has been pushing for two of its members to join PCMD’s BOD. Recently, after years of lobbying, they were offered two non-voting seats, which could be considered an empty gesture, for these positions do not allow access to executive board session, begging the question, “what might the PCMD BOD have to hide?”
Granted, King spoke of transparency in his letter to the community, but as Justin described it to Shalise and I, pertinent information has not been forthcoming from PCMD.
Highlighting a key discrepancy, Justin stated to Shalise and I, in a statement which runs counter to King’s letter, “Central Park will not be forced to pay a higher cost on borrowed money per se, as the rate will remain unchanged if no action is taken, and can always be refinanced at a later date.”
To his credit, King is correct, Central Park could potentially save money if its debt obligation (Mill Levy) is refinanced, assuming the breakeven point is relatively close at hand, and Justin is not debating this point, to be certain, Justin, by his own admission, is open to refinancing the debt, just as King suggests, he simply wants to know who is being vetted to service the debt.
For King to suggest the Central Park community will pay more if it’s bond debt is not refinanced is, in part, a case of semantics, for according to Justin the rate is set. That being said, the community could save money, as King purports in his community letter, if it refinances. Again, while Justin agrees with King that this is advantageous, he wants to ensure, for the sake of his constituents, that Central Park community members, i.e., taxpayers, are getting the best rate, and to date King has not, by Justin’s account, provided sufficient evidence to this end.
At the time of publication, Friday, August 20th, I have not heard back from King, though Shalise and I very much hope to hear his point of view, along with Justin’s, in an open meeting with the MCA in mid-September, if not sooner. Again, to his credit, King offered to speak openly in his community letter, and I expect he will oblige a forthcoming request from the MCA’s Executive Director, Keven Burnett, to speak before the MCA Board Members and Delegates, so we may relay our findings to the community at large.
As Shalise and I wrapped up our hour-long conversation with Justin, I had a burning question, which is, “what was the point of King sending a one-sided letter to the Central Park community when there’s nothing for residents to vote on (at this point), was it simply to pressure Justin, for he has since been confronted by angry residents, including one outside his home, in recent days?”
After Justin addressed this point, Shalise presented another pointed question to Justin, which is, “who approved and paid for the mailing of King’s letter, an unabashedly political message sent to nearly 12,000 residents; a lengthy yet incomplete piece announcing a meeting that had taken place several days prior to most people receiving the notice, which she duly noted, presumably cost Central Park residents, i.e., taxpayers a fair sum?”
Central Park Governance
The Central Park MCA currently has openings for community delegates in District 1 (Bluff Lake), District 4 (South End), and District 7 (I-70). If you are politically inclined, and wish to represent your district, weighing in on important issues, such as those discussed above and below, disseminating valuable information to stakeholders in your neighborhoods, please contact the MCA’s Executive Director, Keven Burnett, thank you.
Pool Updates Expanded
People are back in the pools (mission accomplished), and the newly developed electronic check-in process is going well. That said, 2021 marks the first year that staffing is lower than one would hope for, and I suggested to my MCA colleagues that a $1 monthly HOA dues increase ($44/month vs $43/month) be considered to bolster staffing without raising the pool entry fee.
The logic behind this suggestion, which the MCA board may consider at its leisure, is that pools are the primary income driver for the MCA, and for a modest increase, spread across the entire community ($12/year), would make a significant impact on pool safety and accessibility, e.g., more staff = lower safety incidents = lower insurance costs and higher revenue.
Citing a business example, I suggested to my fellow delegates and board members that we look at the community as though it were a small business and reinvest in the enterprise, generating more revenue in the process. So, if you are in favor of safer, more profitable pools, which ultimately lowers MCA dues, e.g., offsetting future increases by supplementing reserves now, please contact your district delegate.
As I said at the meeting on August 18th, even people who live in the neighborhood but don’t use the pools stand to benefit from their continued care and expanded usage, e.g., longer pool hours, after hours party rentals, etc., for the more these recreational grounds are used, the more profitable the MCA becomes, and the more amenities it can offer to the community.
Of course, when anyone looks to sell a property in Central Park, be it a home, office, or some other form of real estate, prospective buyers will look at the MCAs financials, and the stronger they appear the more apt they will be to close on a purchase, etc.
Pool Takeaways
The MCA is anticipating 100,000 visits for the year, which is a strong number.
Filing 54 in the North End has taken over as the top pool, with over 9,000 visits in the month of July, roughly 1,000 more than the Aviator pool, the community’s second most popular water-based site.
The number of non-residents has declined, compared to recent years (these are some of the most profitable users).
Next year the swimming program will be augmented, as group swimming lessons return. The 2022 season will be bigger and better, and more staff will be needed.
The Active Pass price is expected to be the same next year, as the price has already climbed.
While the pools previously had 144 staff, in 2021 the pool had 120 staff. This is due to budgeting, as the lowest paid pool employee, a person with no prior experience, is paid a minimum of $14.88, nearly double what they previously received before City of Denver mandated wage increases took effect.
MCA Programs
Denver Municipal Jazz Band and the Municipal Band are coming.
The kid’s triathlon is coming, with 500 participants.
Next week the neighborhood diversity signs currently available at the pool will be available at the Farmer’s Market.
Front Porch Newspaper
The Front Porch newspaper, which reaches multiple communities with 35,000 copies, is seeking a “new home,” and the MCA is garnering information on the paper’s financials as the basis for further discussion. East Bridge Community Delegate, Andrew Bartlett, has extensive experience in newspaper publishing, and will offer the MCA insight into the industry in future meetings.
Mosquito Control Program
To help control airborne pests, the Central Park MCA uses Vector Disease Control, a company that places bio-friendly pucks in standing water. The North End neighborhood will be added to the mosquito program in 2022, adding traps and other devices to the parks, etc. Due to safety concerns and local regulations, the MCA cannot spray for mosquitos.