We worked so hard in the Spring and early Summer of 2017 to stop Brookfield from telling us what was in our best interests, taxing us to pay unearned and unaccounted for developer profits, and suppressing our right to vote on our own tax and bond debt. We worked so hard.
26 residents knocked on doors collecting signatures one at a time.
749 resident signed.
50 residents came to our home, at times lined up outside the front door to sign the recall petition.
All to take back our right to make our own decisions and stop writing Brookfield blank checks with no accountability for how our money was being spent. We were leading the way for metro district reform in the Front Range.
And Brookfield fought hard against us. They insisted it was their right to impose taxes and bond debt on us “because we would not do the right thing”. Direct quote from their attorney at a meeting in May, 2017 attended by representatives of Brookfield, residents and then Mayor Paul.
We won. Brookfield tucked tail and ran – minutes before our recall petitions were certified as sufficient to have a new election – the first one in 11 years. We celebrated.
But the celebration was short lived. The residents appointed by Brookfield to minority positions on the boards were not recalled. They were our neighbors. Even though they opposed the recall, they were still our neighbors. We trusted and supported them.
Within a month, the appointed residents stopped talking to the residents who made the recall happen, relied upon Brookfield’s lawyer to tell them what to do and soon thereafter appointed like-minded residents – who also opposed the recall – to serve on the board. Their popularity with the Empty Nesters social group later got them elected after their appointments, despite the gathering clouds that they were just the same as Brookfield when it comes to paying Brookfield more money. One candidate (Andrew Martin) even argued that we should be afraid of Brookfield and do what they tell us to do.
. . . pay unearned profits to the developer with no accountability for how the money was spent . . .
. . . suppress the right of the residents to vote . . .
That was mid to late summer, 2017.
Now a historic moment in Solterra’s history. Mid to late summer, 2020. Three years later. Solterra resident board – doing the same thing.
. . . pay unearned profits to the developer with no accountability for how the money was spent . . .
. . . suppress the right of the residents to vote . . .
In response to Brookfield’s demands – which have not been disclosed to the residents – on Monday, August 3 – the Solterra Board decided with no discussion, with no data presented during the meeting, without answering a single question from the residents and after a two hour secret meeting – the Solterra Board voted unanimously – to go into additional debt of $10 million (not counting the interest of another $10 million) – to write a check to Brookfield for $10 million.
The Solterra Board on August 3, 2020 decided
. . . That they knew what was in our best interest . . .
. . . And they suppressed our right to vote on our own tax and bond debt . . .
Just like Brookfield did for 11 years before the rest of the residents removed them off the board.
In the Solterra Board’s own words published to the community yesterday in an effort to justify the Monday “meeting” they say:
“The FRMD Board was elected to make decisions in the best interests of the community.”
Then they said, as if an after thought: “The Board and professional advisors welcome resident input.”
But the opposite is true. Since 2017 these board members have completely ignored, and in many instances deliberately suppressed, resident input. Monday night was just another example.
The Solterra Board knows what’s best for the residents. They and they alone, with no input from the residents, have decided it is in our best interests to pay Brookfield $10 million with no accountability and no vote by the residents – a right to vote that is expressly written into the Colorado Constitution.
Three days before August 3, 2020, the Solterra Board announced a special meeting to ““make a final determination to refund the Districts’ current general obligation indebtedness of approximately $27,395,000 and to issue new general obligation indebtedness of approximately $10,000,000.”
On August 3, 2020 the meeting was called to order. Almost immediately the Solterra board went into a secret meeting “executive session”.
For over two hours the remaining 36 residents waited.
When the Solterra Board emerged they said three things were going to happen.
First, the chairperson of the finance committee would make a statement. Second, there would be absolutely no question and answer but if the residents had something to say, they could say it. Third the board would, just as the meeting announcement stated “make a final determination to refund the Districts’ current general obligation indebtedness of approximately $27,395,000 and to issue new general obligation indebtedness of approximately $10,000,000.”
And thats what happened.
The finance chairperson, who was apparently called on at the last minute – there was no data, no report from the expensive bond consultant – made general statements to the effect that “since” Brookfield said we owed them money it was “prudent” to use all the savings – every penny – from refinancing the old Brookfield debt to pay Brookfield another $10 million. His words used the past tense – “the board has decided” . . .
A check for $10 million to Brookfield.
A bill to each of us for $ $10 million plus another $10 million in interest.
But two meetings ago, even the finance chairperson agreed that an independent forensic financial audit was probably a good idea. (We had a company ready to go to work in 2017 but it was abruptly stopped by the board saying “we will keep thinking about it”)
http://solterracommunity.org/index.php/2018/04/01/independent-audit-compare-and-contrast-postitions/
http://solterracommunity.org/index.php/2017/10/21/independent-constructionfinance-audit-pro-and-con/
http://solterracommunity.org/index.php/2017/12/10/one-of-the-most-important-conversations-related-to-brookfield-and-the-bonds-frmd-meeting-with-guy-ford-last-monday-11-27-at-1030-a-m-foreshadowing-of-board-decisions-to-come-critical-to-un/
Residents asked questions – there was complete silence following Mr. Waterman’s orders to the board and finance chairperson not to answer or have any discussion.
Residents spoke and unanimously opposed paying Brookfield more money without an independent forensic financial audit and unanimously demanded that the Board return the residents right to vote on new tax debt.
And then the board simply voted, as they said they would, to “make a final determination” to impose a $10 million tax debt (plus another $10 million in interest) on us, suppressing and eliminating our right to vote. Just like Brookfield.
They voted to hire the bond counsel and bond underwriters – they didn’t say how much to authorize – but it typically costs about $300,000 to $500,000 – to prepare the prospectus and documents to implement their decision to issue new bond debt.
And yet, they suggest in their message yesterday that residents will have more opportunity to say whatever they want to say. . . . Just like during the August 3 meeting . . .
But the decision was already made – even before August 3, 2020. When and after what discussion we don’t know – it has all been secret. The finance committee meetings are secret. The board meetings where they have discussed the issue have all been secret.
No data to support the decision.
No independent forensic financial audit to follow the money
No right to vote
This is why we have the right to vote on taxes and bond debt. To be able to ask questions and get honest answers. To get the data. To independently evaluate the data. To have open accountability for how our money is spent. And then to vote as a community.
To ultimately decide for ourselves whether the $500,000 per year savings from refinancing our current Brookfield imposed bond debt should go into our own savings, investment for future Solterra needs (ie Gultches and drainage management, sewer pipe repair/replacement, new recreational facilities) . . . Or be paid in one check (every single penny) to Brookfield for their additional unearned unaccounted for profits.
Under the Colorado Constitution you should be able to vote on whether or not the $500,000 savings should be spent on the residents or Brookfield.
So what are our options.
We tried asking. We asked the Solterra board to give us back the right to vote on tax and bond debt. They have refused.
We asked the Solterra board to put it on a ballot let the residents decide – should the right to vote be returned – yes or no – They have refused.
We asked the Solterra board how many signatures would it take to get this on the ballot (the right to citizen initiatives exists for city, county and state issues – but not special districts). They have ignored the request.
Refinancing the current bonds is a good thing. We will save $500,000 a year (even though we still don’t know what it paid for). But we are stuck with those bonds for now.
Now is a good time to do it because the rates are low. Like refinancing your own mortgage.
But there is absolutely no reason whatsoever to rush to spend all of that $500,00o in savings on NEW debt of $10 million (plus interest) to write a $10 million check to Brookfield when we really have no idea whether or not we owe them $10 million. After an independent financial forensic audit – where did the money we spent on the lot go – it usually pays for the infrastructure – what did Brookfield actually spend for infrastructure – they told Lakewood in 2006 it would cost $34 million – about $30,000 per lot (also the industry average nationwide) – but later told the residents $160 million. We need to have independent experts do an audit – follow the money. It is the only responsible and “prudent” way to handle this.
And we have time – we don’t have to spend the $500,000 tomorrow or the next day or the next month.
And then we vote – just like the Colorado Constitution says we should – Brookfield can first try to persuade us we owe that money and second whether to pay that money with a bond – or some other way. And it may turn out that Brookfield actually overcharged us and they owe us money from the $29 million in bonds already issued.
The only option left is the Brookfield solution – for a Brookfield like problem – recall.
The only way to ultimately be represented on the board is to vote in residents who will represent us, not tell us. Not impose their (or Brookfield’s) view of what they alone think is best for us.
Give back our right to vote. No bond debt without an independent financial forensic audit.
The Solterra Board really don’t care what the residents think about this issue. They don’t want open discussion. They don’t want questions and answers. They want to keep you in the dark. I know because that is what I was told in January of 2017. Don’t upset the residents. We know what’s best for them. Don’t rock the boat. Nothing has changed from 2017 to August 3, 2020. Nothing has changed.
That is not how things work in America. It just isn’t. At the national, state, city and most importantly at the local tax level.
So, lets have an old fashioned Town Hall to get up to speed, talk about these issues and decide for ourselves what to do.
Thursday 8/13 at 6:30 PM or Saturday 8/15 at 9:30 AM
All are welcome to join either session – both will cover the same material.
Join Zoom Meeting
https://ssbinfo.zoom.us/j/99920320158
Meeting ID: 999 2032 0158
A group of residents has organized to talk about this:
I am part of this group and in response to the Board’s actions, with all other options exhausted, we have started the process for a recall:
2020-08-04 13-52-23 Recall Petition 2
2020-08-04 13-47-13 Recall Petition 3
Ultimately it will be you who decides what happens. So, lets talk about it. And make a decision.
See also:
https://rooneyvalleynews.com/metro-districts-101/
John Henderson
Understanding the history of FRMD abuses helps to frame the current issue – Solterra residents have a legal right to vote on taxes. The resident board must reinstate that right. Thank you, John, for this comprehensive summary.