In accordance with Section 32-104.5(3)(X), C.R.S., the following general explanation in plain, nontechnical language, is provided.  This information is intended to be read in conjunction with all applicable legal requirements, governing documents, agreements, resolutions, and determinations of the Boards of Directors of the Districts.

A metropolitan district is a special district that provides any two or more of the following services:

(a) Fire protection;

(b) Mosquito control;

(c) Parks and recreation;

(d) Safety protection;

(e) Sanitation;

(f) Solid waste disposal facilities or collection and transportation of solid waste;

(g) Street improvement;

(h) Television relay and translation;

(i) Transportation; and

(j) Water

In accordance with the Districts’ Service Plan, the Districts may provide the following public improvements and services:

The Districts shall have the power and authority to provide the Public Improvements and operation and maintenance of the Public Improvements within and without the boundaries of the Districts as such power and authority is described in the Special District Act and in other applicable statutes, common law and the Constitution, subject limitations in the Service Plan and includes the following limitations:

(a)    Trails and Amenities.  The Districts may own, operate and maintain trails and related amenities within the Districts.

(b)    Fire Protection, Ambulance and Emergency Services Limitation.  The Districts are not authorized to provide or maintain fire protection facilities or services, unless such facilities and services are provided pursuant to an intergovernmental agreement with the Town.   The authority to provide for fire hydrants and related improvements as part of the water system is not limited by this provision   The Districts shall not provide ambulance or emergency medical services unless the provision of such service is approved by the Town in an intergovernmental agreement.

(c)    Television Relay and Translation Limitation.  The Districts shall not be authorized to provide television relay and translation facilities and services, other than for the installation of conduit as part of a street construction project, unless such facilities and services are provided pursuant to an intergovernmental agreement with the Town.

(d)    Telecommunication Facilities.  The Districts agree that no telecommunication facilities owned, operated or otherwise allowed by the Districts shall affect the ability of the Town to expand its public safety telecommunication facilities or impair the Town’s existing telecommunication facilities.

(e)    Solid Waste Collection Limitation.  The Districts shall not provide for collection and transportation of solid waste, other than waste generated by the activities of the Districts, unless such services are provided pursuant to an intergovernmental agreement with the Town.

(f)     Transportation Limitation.  The Districts shall not provide transportation services unless such services are provided pursuant to an intergovernmental agreement with the Town; however, the Districts are not prohibited from providing streets and traffic and safety control services. 

(g)    Water Rights/Resources Limitation.   The Districts shall not acquire, own, manage, adjudicate or develop water rights or resources except pursuant to an intergovernmental agreement with the Town.

(h)    Covenant Enforcement and Design Review Services.  The Districts shall have the power, but not the obligation to provide covenant enforcement and design review services within the Districts.

 As contemplated by the Districts’ Service Plan and by separate agreement among the Districts, District No. 1 anticipates constructing, operating and maintaining public improvements and providing services on behalf of the Districts, and District Nos. 2 – 6 will provide funding for the costs associated with the provision of public improvements and services by District No. 1.

District No. 1 provides the following ongoing services on behalf of the Districts: operation and maintenance services of public improvements owned by District No. 1 and located within the boundaries of the Districts.

  In accordance with the Districts’ Service Plan, the total amount of debt the Districts can incur to provide and pay for public infrastructure is:  $33,376,567.

 In accordance with the Districts’ Service Plan, the following revenue may be used to pay for the Districts’ debt: 

All Debt issued by the District may be payable from any and all legally available revenues of the Districts, as set forth in the Service Plan, including ad valorem property taxes or Development Fees.

 In accordance with the Districts’ Service Plan, the maximum mill levy a District may assess to pay for its debt is as follows:

Maximum Commercial Debt Mill Levy.  The Maximum Commercial Debt Mill Levy shall be 50 mills subject to an Assessment Rate Adjustment, if applicable.  For the portion of any aggregate Debt which is equal to or less than 50% of the Commercial District’s assessed valuation, either on the date of issuance or at any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the Maximum Commercial Debt Mill Levy and, as a result, the mill levy may be such amount as is necessary to pay the Debt service on such Debt, without limitation rate.

Maximum Golf Course Debt Mill Levy.   The Maximum Golf Course Debt Mill Levy shall be 10 mills subject to an Assessment Rate Adjustment, if applicable.

Maximum Residential Debt Mill Levy.  The Maximum Residential Debt Mill Levy shall be 40 mills subject to an Assessment Rate Adjustment, if applicable.  For the portion of any aggregate Debt which is equal to or less than 50% of the Residential District’s assessed valuation, either on the date of issuance or any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the Maximum Residential Debt Mill Levy if a majority of the Board of the Residential District are End-Users, and such Residential District Board authorizes such a Maximum Residential Mill Levy “roll-off” through the issuance of Debt or refunding thereof, and, as a result, the mill levy may be such amount as is necessary to pay the Debt service on such Debt, without limitation of rate.

Maximum Mixed-Use Debt Mill Levy.  The Maximum Residential Debt Mill Levy shall apply to any Mixed-Use District; provided however, that if approved in an intergovernmental agreement approved by Town Council, then the Maximum Commercial Debt Mill Levy may be applied within a Mixed-Use District.  For the portion of any Aggregate Debt which is equal to or less than 50% of the Mixed-Use District’s assessed valuation, either on the date of issuance or at any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the Maximum Residential Debt Mill Levy if a majority of the Board of the Mixed-Use District are End Users, and such Mixed-Use District Board authorizes such a Maximum Residential Mill Levy “roll-off” through the issuance of Debt or refunding thereof, and, as a result, the mill levy may be such amount as is necessary to pay the Debt service on such Debt without limitation of rate.

Assessment Rate Adjustment means, if on or after January 1, 2021, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement, the Maximum Debt Mill Levy and Maximum Operations and Maintenance Mill Levy may be increased or decreased to reflect such changes, such increases and decreases to be determined by the Board in good faith so that to the extent possible, the actual tax revenues generated by the applicable mill levy, as adjusted for changes occurring after January 1, 2021, are either diminished nor enhanced as a result of such changes.  For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation shall be deemed to be a change in the method of calculating assessed valuation.

Residents within each District may serve on the Board of Directors of the District if they are eligible electors of the District. A resident is an eligible elector of the District if the resident lives within the boundaries of the District and is registered to vote in Colorado.