2025 fence Ballot Measure
What is it?
The Fence Ballot Measure refers to a Cherry Park neighborhood vote that will take place in November of 2025. The vote will determine whether the GID, on behalf of all Cherry Park owners, will take on debt to pay for a replacement of the common area fence. The debt amount would be paid off over a several year period as an annual increase to owner tax amounts.
Which fence will it replace?
The neighborhood perimeter fence, which runs along Arapahoe Rd., S. Holly St., S. Krameria Wy., E. Weaver Ave., and the NW perimeter of Cherry Park. This fencing is primarily located on public street/property right-of-way, with some parts located on private property with easements for the publicly owned fence.
Why take on debt? Can't the GID just pay for a fence?
There isn't enough money in the GID Fund to cover a new fence. The fund primarily deals with maintenance activities, and the fund is currently hovering right near the recommended reserve level of $200,000.
The GID Fund has an annual expense budget that typically distributes between $50K-$55K and from our 321 residences, but only approximately $40K is deposited into the fund each year. This fund has been in place with the same mill levy rate since 1987. Due to inflation, the cost of labor, goods, and services have increased dramatically, and GID fund outflow is surpassing inflow.
The ~6,000LF of common area fence is part of GID maintenance responsibility, but as the fence continues to age, the financial strain on the GID increases. This fence proposal is a targeted preventative measure to replace the failing fence and ease long term fence maintenance costs on the GID, freeing up funds for other needed repairs and improvements.
How old is the fence?
Much of the fence is over 40 years old. Parts of the fence on the North and East sides of E. Weaver Ave and S. Krameria Way are a bit newer, dating around the early 2000s.
How much will the fence cost to replace?
The City of Centennial estimated between $600,000 and $1,000,000. The final price for the project will depend on material costs, potentially higher construction costs, surveying, easement costs, project management, etc.
What would the cost be to each homeowner?
The GID mill levy would increase to offset the loan repayment. The amount of the increase would depend on the loan, interest rate, and loan term - all of which are TBD.
Simplified Example:
- Assumptions: 321 residences, $750,000 'Actual Value' per home. $750,000 GID loan at 5.5% APR with a 10 year term.
- Pre-Loan GID Tax: ($750,000 - $55,000 2024 exemption) = ($695,000 * 6.7% assessed value rate) = ($46,585 assessed value * .00378 GID Mill Levy) = $176.10 GID cost per home each year.
- Post-Loan GID Tax: Loan amortized at 10 years = ($97,673.64 per year / 321 residences) = $304.27 extra cost per home each year. Total yearly cost for 10 years = $480.37 per home.
Have any other GID neighborhoods done this?
Yes. Both Willow Creek and Fox Ridge have used their GIDs to replace perimeter fencing with a mill levy increase through Centennial.
What happens if the ballot measure fails?
If the ballot measure fails, our GID representative plans to request that the common area fence be removed from the purview of the GID fund due to its unsustainable drain on monetary resources. In this case, each neighbor with a common area fence would become responsible for the maintenance of their own fence, and could do as they pleased with the fence within the covenant requirements.
Given the state of disrepair, it's likely the fence would take on a visually dissonant appearance over the next several years as neighbors replaced / modified the fence to their liking.
The GID and HOA are separate entities, but if the fences are relinquished to homeowners, then they will fall under the purview of the HOA. Therefore it is also likely that the HOA would be heavily burdened with issuing violation notices and pursuing action against neighbors for failing to address needed repairs and replacements to the aging fence.
Where can I get more information? How can I help?
Stay informed and ensure your neighbors know about the upcoming vote. Direct them to this page for additional information. The GID representative will continue holding informational meetings where neighbors can discuss the initiative and offer feedback.
Please contact your GID representative for detailed information or to discuss: Johnny Castellano - (303) 619-5079 - cherryparkgid@gmail.com.