At its October meeting, the Ken‑Caryl Ranch Metropolitan District Board of Directors reviewed a draft 2026 budget that staff said is intended to maintain strategic alignment, preserve reserves and fund near‑term capital needs.

Katrina, speaking as finance staff, told directors that 2025 produced roughly $700,000–$800,000 in carryover largely from salary savings and several one‑time items. Staff recommended transferring $500,000 of that carryover from the general fund into the capital reserve to fund items on the 2026 capital improvement plan (CIP), including planned resurfacing and maintenance and a 5‑court pickleball project. Katrina said the district currently projects about $209,000 remaining in the capital reserve after the proposed transfer and the board‑approved capital expenditures and asked the board for direction.

The draft budget highlights shown to the board listed revenues at about 102% of budget year‑to‑date and expenditures at about 91%. Katrina said the district expects to receive roughly $60,000 in Conservation Trust (lottery) receipts in 2026 and has about $258,000 currently held in that fund; staff proposed using $25,000 of Conservation Trust money for resurfacing tennis courts 1 and 2.

On fees, staff proposed passing the district’s credit‑card processing fee (about 4.78% per transaction) back to customers rather than continue absorbing roughly $99,000 per year in card fees. Katrina said the district will offer alternate payment options to avoid charging customers who choose not to pay by card. Staff also flagged that overall cost recovery would decline in 2026 if fees are left unchanged because operating costs are rising.

On personnel costs, staff proposed a 3% cost‑of‑living adjustment for 2026 and a merit‑based bonus program for high performers (up to $1,500 total, paid in three installments) and outlined a proposed approach to health benefits: move employee‑only coverage toward 90% employer contribution while adjusting other plans to roughly 75% contribution, and offer a high‑deductible plan with an employer HSA contribution to increase employee choice.

Board members asked for more detail on the CIP line items and discussed the timing of capital projects. Directors expressed a desire for firm construction estimates before committing more of the capital reserve; several members said they supported moving forward with design documentation so the district could obtain hard bids. Legal counsel and staff advised the board to prioritize uses of settlement or restricted funds that clearly meet terms of those funding sources.

Procedural actions: the board voted to set a public hearing on the proposed 2026 budget for Nov. 11, 2025, and to reschedule its December meeting from Dec. 2 to Dec. 9, 2025. Those motions passed by roll‑call vote (4–0).