SOUTHSHORE METROPOLITAN DISTRICT
2026 Budget
Every year, the Southshore Metro District Board crafts a budget that prioritizes responsible management of our financial resources. Their commitment to ensuring that every dollar is handled with care is at the heart of their mission. This process involves assessing the costs of essential services, maintenance, and improvements while maintaining adequate reserves, all aimed at enhancing the quality of life for our residents. By forecasting and prioritizing expenses, the board balances maintaining high standards while managing costs effectively. Here, you’ll find information on the 2026 budget and how it impacts District revenues, community operations, and community improvements. We encourage all residents to stay informed and engaged in this vital process that enhances the long-term health and enjoyment of our community.
Revenue Considerations
The funding mechanism for 2026 will remain unchanged from prior years. Property taxes will continue to be the primary source of funding for operations and debt service. A resident survey conducted in the fall of 2024 shows strong support for using property taxes as the main funding source.
​​​
For 2026, the District’s debt service obligation will increase by $184,000 (5.2%) compared to 2025. At the same time, as the economy shifts toward lower interest rates, the District decreased the interest income budget $64,000 (28%) compared to 2025.
Temporary Mill Levy Reduction
Several key factors were considered in determining the District’s mill levy for 2026:
-
Completion of new construction – The final new homes were sold to property owners in 2025.
-
Updated property values – 2026 reflects the County’s new bi-annual property appraisal assessments.
-
State assessment rate change – The State of Colorado has set a fixed assessment rate of 6.25%.
After accounting for these factors—along with higher debt service obligations and lower interest income—the District has approved a one-time Temporary Mill Levy Reduction estimated at 1.949 mills for 2026.
While this reduction is smaller than the 2025 reduction of 4.245 mills, it demonstrates the District’s continued commitment to operating efficiently, leveraging reserves, and utilizing unused surety funds to help offset costs.
Please note that this Temporary Mill Levy Reduction applies only to 2026. Property owners should not assume a similar reduction will be applied to the 2027 mill levy.
Actual property taxes depend on each property's appraised value as determined by the Arapahoe County Assessor. For this analysis, we are assuming a home with an appraised value of $900,000.
The primary goal of the Southshore Metro District has been to reduce costs for property owners while maintaining a resort-style living experience. In the example above, a home would have paid approximately $4,622 to the District and Master Association combined in 2024.
​​
With the District assuming responsibility for operations and maintenance in 2024, new efficiencies have been achieved. Under the approved 2026 District budget, the same home would pay approximately $3,932—a reduction of nearly 15%.
How Do We Compare?
2025 Southshore Estimated based on 2026 approved Mill Levy of 63.5
For nearly two decades, many communities have transitioned their operations and maintenance responsibilities to their Metro Districts, taking advantage of the unique benefits this approach offers. Southshore is among the last communities in Southeast Aurora to make this shift.
​
With the transition completed in 2024, Southshore's estimated average cost per property owner has decreased. However, it remains higher than that of some neighboring communities. This is largely due to Southshore Metro District following the bond agreement maturity schedule that pays more toward debt principal then our neighboring communities. In 2026, Southshore will increase our debt principal payment by $184,000 which represents a 5% increase over 2025.
How Do We Compare Before Debt Service Payments?
2025 Southshore Estimated based on 2025 approved Mill Levy of 63.5
Each community carries its own unique debt obligations. When debt service payments are excluded, Southshore’s operating expense budget ranks near the middle compared to similar communities.
Considering Southshore’s extensive facilities, community programs, amenities, and ongoing commitment to addressing deferred maintenance, it’s clear that Southshore operates efficiently and competitively within a comparable environment.
Operating Expense Considerations
The year 2026 marks the second full year of operations since the District assumed responsibility for maintaining its facilities, parks, and common areas. The 2026 budget builds upon the actual expenses and experience gained from 2025 to further refine service levels and long-term maintenance planning.
In 2026, the District will continue providing key community services, including street plowing, pond maintenance, safety and security measures, landscaping, and facility maintenance.
​
2026 Budgeted Operating Expenses
Reserve Considerations
Reserve funds are set aside for planned future expenses. ​
These reserves allow the District to cover expenses without affecting daily operations.
​​
Reserves are necessary only for organizations with ownership or contractual obligations.
​​
The District’s 2026 budget projects an ending operating and debt reserve balance of $2,652,428 and $2,907,386, respectively.
Capital Project Considerations
In late 2024, Southshore Metro District was notified that the City of Aurora would be refunding $180,000. These funds were originally held as collateral for any necessary warranty work on the build-out of public infrastructure. The warranty period has since expired, and the funds were not needed.
Because these funds were initially provided to the City through General Obligation Bonds, they must be allocated to new projects. Southshore Metro District has not made a decision on specific uses for these funds, but the plan will include engaging our committees and residents in the decision-making process.
​
​
