The Finance & Administration department provides support functions for both the Highlands Ranch Metro District and Centennial Water & Sanitation District. The support functions performed include accounting, treasury, financial reporting, budgeting, utility customer service, information technology and office services and support.

The Highlands Ranch Metro District is committed to providing quality municipal services while managing resources wisely for the community of Highlands Ranch. The Metro District Board has identified specific objectives that help to guide the budget and planning process: 

• Present a balanced budget
• Maintain the current level of service
• Maintain a minimum General Fund balance of 40% of annual operating expenditures
• Maintain all assets owned by the Metro District 

The Metro District’s primary source of revenue for operations is property tax.  With the community nearing full build-out, the growth portion of the Taxpayer Bill of Rights (“TABOR”) will be limited thus reducing future growth potential of increasing the property tax revenue stream.  

In addition to the numerous financial policies adopted internally by management, the Board has established financial policies for fund balances, transfers, investments, and purchasing.  

The Metro District’s budget procedures shall comply with Local Government Budget Law of Colorado as outlined in Colorado Revised Statues (C.R.S.) Title 29 Article 1 Part 1 Budget Services Part 1, for the preparation, consideration, adoption execution and audit of the annual budget.

Balanced Budget

• The budget shall be balanced by fund.
• The budget will be considered balanced if:
  • Estimated revenues and resources for each fund will equal or exceed recommended appropriations.
  • Fund balances meet or exceed the targeted ending fund balances established by the Board. 

Targeted ending fund balances for the General Fund and the Debt Service Fund are adopted with the approval of the 2021 Budget. 

• The General Fund will continue to maintain a fund balance (effectively working capital) equal to at least 40 percent of the next year’s estimated operating expenditures. 
• The Debt Service Fund will maintain an ending fund balance equal to the following year’s principal and interest payments. 

Colorado State Statutes specify investment instruments used by local governments must meet defined risk criteria. The Metro District has adopted an investment policy that is more restrictive than the State Statutes and is limited to:

• U.S. Treasury Obligations:  Treasury Bills, Treasury Notes, and Treasury Bonds with a final maturity not exceeding five years from the date of purchase and U.S. Treasury STRIPS with maturities not exceeding five years from the date of purchase.
• Federal Instrumentality Securities: Debentures, discount notes, and callable securities with a final maturity not exceeding five years from the date of purchase issued by the following: Federal National Mortgage Association (FNMA), Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), and Student Loan Marketing Association (SLMA).
• Repurchase Agreements, executed subject to an approved Master Purchase Agreement, with a termination date of 90 days or less collateralized by U.S. Treasury Securities listed above with maturities not exceeding ten years.
• Corporate Debt: debt issued by any corporation or bank organized and operating within the United States with a maturity not exceeding three years from the date of trade settlement. The debt must be rated at least AA- or the equivalent at the time of purchase by at least two NRSROs and rated not less than AA- by any Nationally Recognized Statistical Rating Organization (NRSRO) that rates it. The District shall limit investments in Corporate Debt to no more than 25 percent of the total portfolio and 5 percent per issuer.
• Prime Commercial Paper with an original maturity of 180 days or less which is rated at least A-1 by Standard & Poors or P-1 by Moody's at the time of purchase by each service which rates the commercial paper.
• Eligible Bankers Acceptances with original maturities not exceeding 180 days, issued on domestic banks whose senior long-term debt is similar to 4 above; that have a combined capital and surplus of at least $250,000,000; and have deposits insured by the FDIC.
• Local Government Investment Pools authorized under CRS 24-75-701 and 702.
• Money Market Mutual funds which have a rating of AAA by Standard and Poors or AAAm by Moody's. 

Purchasing Guidelines are intended to ensure that purchases are made in accordance with good business practices while streamlining necessary administration. The Purchasing Guidelines were first implemented in the early 1980s and were most recently revised on Aug. 1, 2023. The Purchasing Guidelines set the structure for delegated authority, levels for obtaining bids, and allowable purchases. In all circumstances, approvals cannot take place unless sufficient funds have been appropriated for the project by the Board of Directors. Any adjustment to the appropriations must also be presented to the Board of Directors for approval.