HomeMy WebLinkAbout20062410 T . VRAIN METROPOLITAN
DISTRICTS # 1 - 4
) ) )
FINANCING PLAN
• PURPOSE
1. Meets statutory requirements that Metro
Districts # 1 — 4 are financially feasible
2. Provide a financial planning framework
for Districts # 1 - 4
8/15/2006 Stan Bernstein & Associates, Inc.
FINANCING PLAN BASED ON
DEVELOPER'S BUILDOUT ESTIMATE
• TOTAL RESIDENTIAL UNITS
• 4,433 units
• $134 million in assessed valuation
• TOTAL COMMERCIAL SQ. FT
• 434,511 square feet
• $15 million in assessed valuation
• $ 149 million in Assessed Valuation
8/15/2006 Stan Bernstein & Associates, Inc.
HIGHLIGHTS OF FINANCING PLAN
FOR SVMD # 1 - # 4
MILL LEVY
• FINANCING PLAN BASED ON 45 MILL LEVY
FOR RESIDENTIAL PROPERTY
. Home valued at $250,000 pays $896/year or $75/month
• FINANCING PLAN BASED ON 45 MILL LEVY
FOR COMMERCIAL
. 20,000 square foot building valued at $1,600,000 pays
$20,880/year or $1,740/month
8/15/2006 Stan Bernstein & Associates, Inc.
) ) )
SVM D # 1 - # 4
MILL LEVY COMPARISON
DISTRICT DISTRICT MILL LEVY))) TOTAL OVERLAPPING MILL LEVY(2)
nspire Metro#2 and#3 20.000 114.929
Erie Commons#2 43.000 131.656
Sweetgrass Metro # 2 43.000 155.187
Vista Ridge Metro 54.332 142.899
Wyndham Hill Metro #2 43.000 113.200
SMPG #1-6 0.000(3) 88.552
Cottonwood Hollow Res. Metro 5.000(4) 97.817
Eagle Meadow Metro 31.934 122.364
Greens Metro 40.190 122.329
Peaks Metro 35.000 140.656
Pinnacle Farms Metro 38.000 140.280
Stoneridge Metro 40.000 121.850
St. Vrain Metropolitan District 55.000 127.000
[1] District Mill Levy information is from the 2005 Mill Levy Report complied by Weld County.
[2]Total Overlapping Mill Levy varies by location in the Metro District.
[3]5MPG#1-6 did not certify a mill levy for 2005. However,the Service Plan permits 50 mills for debt service and 15 mills for operations and maintenance costs. Levy of the fully
authorized 65 mills would result in a total overlapping mill levy of 153.552.
[4]Cottonwood has a total mill levy cap of 60.000 mills. Assuming imposition of the fully authorized Cottonwood levy,the total overlapping mill levy would be 122.82.
8/15/2006 Stan Bernstein & Associates, Inc.
) ) )
HIGHLIGHTS OF FINANCING PLAN
FOR SVMD DISTRICTS # 1 - #4
BONDING
• $ 161 MILLION NET BOND PROCEEDS
REIMBURSES DEVELOPERS OVER TIME
FOR INITIAL CAPITAL OUTLAY
8/15/2006 Stan Bernstein & Associates, Inc.
HIGHLIGHTS
OE FINANCING PLAN
FOR SVMD DISTRICTS # 1 - #4
BONDING
• BONDS ARE ISSUED FROM 2009 - 2031
BASED ON BUILDOUT ESTIMATES
• IF BUILDOUT LAGS, ESTIMATED BOND
ISSUES WILL ALSO LAG
• MILL LEVY CAP OF 65 LIMITS RISK TO
RESIDENTS
8/15/2006 Stan Bernstein & Associates, Inc.
CONSOLIDATED SERVICE PLAN
FOR
ST. VRAIN LAKES METROPOLITAN DISTRICT NOS. 1 -4
WELD COUNTY, COLORADO
Prepared
By
White Bear&Ankele
Professional Corporation
1805 Shea Center Drive Suite 100
Highlands, Ranch, CO 80129
Filed with Weld County, Colorado
On
June 12, 2006
EXHIBIT
TABLE OF CONTENTS
I. INTRODUCTION 1
A. Purpose and Intent 1
II. DEFINITIONS 1
A. Multiple District Structure 3
B. Needs Analysis/Basis for Statutory Findings 4
C. District Functions Generally 4
III. BOUNDARIES 5
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION 5
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES 6
A. General Powers of the Districts 6
B. Limitations of the Districts Powers and Service Plan Amendment 7
C. Primary Infrastructure Plan 10109
D. IGAs 10109
VI. FINANCIAL PLAN 111110
A. General 111110
B. Maximum Net Effective Interest Rate and Maximum Underwriting Discount
121211
C. Maximum Debt and Maximum Aggregate Mill Levy 121211
D. Maximum Debt Mill Levy Imposition Term 131312
E. Debt Repayment Sources 131312
F. Security for Debt 131312
G. District Elections 131312
H. Districts' Operating Costs 131312
VII. DISSOLUTION 141413
VIII. CONCLUSION 141113
LIST OF EXHIBITS
EXHIBIT A Legal Descriptions
EXHIBIT B Map of the Initial District Boundaries
EXHIBIT C Projected District Infrastructure Costs
EXHIBIT D Maps Depicting Public Improvements
EXHIBIT E Financial Plan
EXHIBIT F Statutory Considerations
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I. INTRODUCTION
A. Purpose and Intent
The St. Vrain Lakes Metropolitan District Nos. 1-4 (the "Districts") are
independent units of local government, separate and distinct from Weld County, Colorado and,
except as may otherwise be provided for by State or local law or this Service Plan, their activities
are subject to review by Weld County only insofar as they are specifically required hereunder or
may deviate in a material matter from the requirements of this Service Plan. This Service Plan is
submitted in accordance with Part 2 of the Special District Act (Section 32-1-201, et seq.,
C.R.S.) It defines the powers and authorities of, as well as the limitations and restrictions on the
Districts. It is intended that the Districts will provide a part or all of the Public Improvements
necessary and appropriate for the development of a project within Weld County to be known as
Bayshore. The Public Improvements will be constructed for the use and benefit of all anticipated
inhabitants, property owners and taxpayers of the Districts and the public in general. The
primary purposes of the Districts will be to plan, design, acquire, construct, install, finance,
receive reimbursement for, own, operate, maintain, relocate and/or redevelop the Public
Improvements.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan or other process established by
the County for identifying, among other things, Public Improvements necessary for
facilitating development for property within the Service Area as approved by the County
pursuant to the Weld County Code.
Board: means the board of directors of one District or the boards of directors of all
Districts, in the aggregate, as is contextually appropriate.
Board of County Commissioners: means the Board of County Commissioners of Weld
County, Colorado
County: means Weld County, Colorado
County Code: means the County Code of Weld County, Colorado, as may be amended
from time to time.
Debt: means bonds or other financial obligations not subject to annual appropriation
(excluding District IGAs) for the payment of which any District has promised to impose,
collect and pledge an ad valorem property tax mill levy.
Debt Limitation: means the maximum amount of Debt payable in whole or in part from a
pledge of ad valorem property taxes that the Districts may issue in aggregate, whether
such Debt is issued by one District, or any combination of Districts. Debt that is paid,
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defeased or refunded shall not be counted against the Debt Limitation, nor shall increase
as necessary to accomplish a refunding, reissuance or restructuring of Debt.
Developer: means Carma Colorado, Inc., a Nevada corporation, and its affiliates,
subsidiaries, successors or assigns.
District: means any one of the St. Vrain Lakes Metropolitan District Nos. 1 through 4.
District Activities: means any and all functions undertaken by the Districts in accordance
with this Service Plan and as permitted under applicable law in order to effectuate the
purposes for which the Districts are organized.
District IGAs: means one or more agreements among one or more of the Districts
pertaining to one or more District Activities.
District No. 1: means the St. Vrain Lakes Metropolitan District No. I.
District No. 2: means the St. Vrain Lakes Metropolitan District No. 2.
District No. 3: means the St. Vrain Lakes Metropolitan District No. 3.
District No. 4: means the St. Vrain Lakes Metropolitan District No. 4.
Districts: means District No. 1, District No. 2, District No. 3 and District No. 4,
collectively.
Fees: means any rate, fee, toll, penalty or other charge imposed by the Districts and
permitted by applicable law for services, programs or facilities provided by the Districts.
Financial Plan: means the Financial Plan described in Section VI. and as further set forth
on Exhibit E, attached hereto and incorporated hereby, which describes (a) how the
Public Improvements are to be financed; (b) how the Debt is expected to be incurred; and
(c) proposed sources of revenue and projected expenses of the Districts.
Financing District: means any one or more of District Nos. 2 through 4.
IGAs: means collectively, the District IGAs and the County IGA.
Initial District Boundaries: means the initial boundaries of the Districts as described in
Exhibit B.
Initial District Boundary Map: means the map attached hereto as Exhibit B depicting the
initial boundaries of the Districts.
Maximum Aggregate Mill Levy: means the maximum mill levy any of the Districts are
permitted to impose for payment of Debt and operations related to District Activities as
described in paragraph VI.C. below.
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Maximum Debt Mill Levy: means the maximum mill levy any of the Districts are
permitted to impose for payment of Debt as described in paragraph VI.C, below.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy for any individual Debt issuance, as described in paragraph VI.D, below.
Maximum Net Effective Interest Rate: means the maximum net effective interest rate
applicable to any issuance of Debt, which is 18% under this Service Plah.
Maximum Underwriting Discount: means the maximum underwriter's discount
applicable to any issuance of Debt, which is 5% under this Service Plan.
Primary Infrastructure Plan: means those Public Improvements to be provided by the
Districts, as are further set forth within Exhibit C and Exhibit D.
Project: means the development or property commonly referred to as St. Vrain Lakes or
Bayshore within the County.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped, operated, maintained
and/or financed as generally described in the Special District Act, except as specifically
limited in Section V. below, to serve the future taxpayers and inhabitants of the Service
Area as determined by the Board.
Service Area: means the property within and without the Initial District Boundaries that
may legally be served by the Districts.
Service District: shall refer to District No. 1.
Service Plan: means this service plan for the Districts approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved from time
to time by the County, in accordance with the all provisions of applicable state law and
the County Code.
Special District Act: means Section 32-1-101, et seq., of the Colorado Revised Statutes.
State: means the State of Colorado.
TABOR: means Article 10 Section 20 of the Colorado Constitution.
A. Multiple District Structure
The Districts are proposed to exist pursuant to a multiple district structure as the
projected absorption of the Project and Public Improvements to be financed is projected to
extend well over a ten (10) year period from the date anticipated for organization of the Districts.
Additionally, the Project includes multiple uses, including various types of residential products
and commercial development. The boundaries of the three Financing Districts are based upon
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two separate phases of residential development and a separate parcel that shall include
commercial development.
District No. 1 is proposed to be the Service District, and is expected to coordinate the
manner in which the District Activities shall be conducted with, and between, each of the
Financing Districts pursuant to one or more District IGAs. The Financing Districts are expected
to include all of the future development comprising the Project and are responsible for providing
the funding and tax base as is necessary for the District Activities as the same relate to the Public
Improvements. The Service District and Financing Districts will be permitted to provide public
services and facilities within the Service Area.
B. Needs Analysis/Basis for Statutory Findings
In order to establish compliance with the standards for Service Plan approval as are set
forth in Section 32-1-203, C.R.S., Exhibit F, attached hereto provides a needs analysis for the
proposed Districts.
C. District Functions Generally
The Districts shall be authorized to fund the District Activities from the proceeds of Debt
to be issued by the Districts, and from other legally available revenues. All Debt payable from a
pledge of property taxes is subject to the Maximum Debt Mill Levy, Maximum Mill Levy
Imposition Term and Debt Limitation. Debt issued within these parameters and pursuant to the
provisions of this Service Plan will insulate property owners from excessive tax burdens to
support the servicing of such Debt and also will result in a timely and reasonable discharge
thereof.
The Districts expect and are authorized to own, operate and maintain certain
Public Improvements not dedicated to the County or other governmental entities, the scope of
which shall include, but not necessarily be limited to park and recreation improvements, lake and
water amenities within the Project and associated recreation facilities and buildings. Certain
other Public Improvements will be dedicated to either the County, or in the case of water and
sanitation improvements to the Little Thompson Water District and the St. Vrain Scwer
Sanitation District, respectively, according to the requisite procedures for the specific entity
(including but not limited to standards relating to construction). Determination of both the scope
and manner in which specific Public Improvements will be dedicated to the County and/or other
governmental entities will be the subject of separate agreements among the interested parties.
Further detail on operations and maintenance of certain Public Improvement is discussed below.
The County shall have and will exercise sole and exclusive jurisdiction over land
use and building, e.g., zoning, subdivision, building permit issuance, and property development
within the boundaries of all Districts. Construction of all Public Improvements shall be subject
to applicable ordinances, codes and regulations of the County and other applicable governmental
entities.
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III. BOUNDARIES
The general boundaries of the Districts consist of Weld County Road 13 to the east,
Colorado State Highway 66 to the north, United States Interstate I-25 to the west, and the Saint
Vrain River to the south. The area of the Initial District Boundaries includes approximately
1,314 acres. The combined acreage of the Districts covers all acreage within the Project.
Currently, there are no additional areas proposed for inclusion into the Districts. A legal
description of the Initial District Boundaries for each District is attached hereto as Exhibit A. A
map of the Initial District Boundaries is attached hereto as Exhibit B.
It is anticipated that the Districts' boundaries may change from time to time as they
undergo inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section
32-1-501, et seq., C.R.S. Any proposed inclusion or exclusion of property shall require forty-five
(45) day published and written notice to the County made pursuant to Section 32-1-207(3)(6),
C.R.S. If the County expresses written objection to the proposed action, the proposed action shall
be considered a material modification of the Service Plan and shall be resolved only in
accordance with Section 32-1-207(2) C.R.S. The vote by the Board of Directors to seek
inclusions or exclusions which precedes the notice to the County, must occur at a public meeting
of the District for which the District has sent written notification via U.S. mail at least fourteen
(14) days and not more than thirty (30) days in advance of such a meeting to all electors,
residents, and land owners. Such notice shall include the time, date and location of the meeting,
as well as a general description of the modification to be discussed.
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
It is currently anticipated that at full build out the Project will include approximately
1,314 acres of mixed use development, including approximately 2,921 single family homes,
1,512 multi-family or attached homes and approximately 434,511 square feet of commercial
space. At 2.6 person estimated per household and using 1.3 as a single-family equivalent, the
population of the area is anticipated to be approximately 12,705.16 persons. The current
assessed valuation of the Service Area is assumed to be $0.00 for purposes of this Service Plan
and, at build out, is expected to be sufficient to reasonably discharge the Debt proposed under the
Financial Plan -- at a level approximating $133,647,005 in 2018.
Approval of this Service Plan by the County does not imply approval of the development
of a specific area within the Districts, nor does it imply approval of the number of residential
units or the total site/floor area of commercial or industrial buildings identified in this Service
Plan or any of the exhibits attached thereto. Any and all development approvals are specifically
subject to further approval by the County pursuant to the County Code and all other County
requirements.
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V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A. General Powers of the Districts
The Districts shall have the power and authority to provide the Public Improvements and
undertake related District Activities within the Service Area, as such power and authority is
described in the Special District Act, and other applicable statutes, the common law and the
Constitution, as of the date of approval of this Service Plan and subject to the limitations set forth
in this Service Plan. In order for the Districts to facilitate financing and completion of the Public
Improvements for the benefit of the County and all inhabitants, property owners and taxpayers of
the Districts, the Districts shall have the following necessary and reasonable authorizations as a
metropolitan district, as are more specifically set forth within Title 32 generally and Section
32-1-1004, C.R.S., specifically:
1. Elimination and control of mosquitoes;
2. Parks or recreational facilities or programs as specified in section
32-1-103(14), C.R.S.;
3. Safety protection through traffic and safety controls and devices on streets
and highways and at railroad crossings;
4. Sanitation services as specified in section 32-1-103(18), C.R.S.;
5. Street improvements through the construction and installation of curbs,
gutters, culverts, and other drainage facilities and sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements;
6. Transportation as specified in subsection (5) of Section 32-1-1004, C.R.S.;
7. Water and sanitation services as specified in section 32-1-103(18), (24),
and (25), C.R.S.;
8. Water as specified in section 32-1-103 (25), C.R.S.;
9. Solid waste disposal facilities or collection and transportation of solid
waste as specified in section 32-1-1006(6) and (7);
10. Establish, maintain, and operate a system to transport the public by bus,
rail, or any other means of conveyance, or any combination thereof; and
11. Furnish covenant enforcement and design review services.
If additional powers or grants for special districts are provided by amendment of Section
32-1-1001, et seq., C.R.S., after the date of the approval of this Service Plan, no such powers
6
shall be available to or exercised by the Districts unless the Districts publish forty-five (45) days
notice and provide written notice to the County pursuant to Section 32-1-207(3)(b), C.R.S. If
within forty-five (45) days of the publication, the County expresses written objection to the
proposed action, the proposed action shall be considered a material modification of the Service
Plan and shall be resolved only in accordance with Section 32-1-207(2) C.R.S. The vote by the
Board of Directors to obtain or utilize such powers which precedes the notice to the County,
must occur at a public meeting of the Districts for which the Districts have sent written
notification via U.S. mail at least fourteen (14) days and not more than thirty (30) days in
advance of such a meeting to all electors, residents, and land owners. Such notice shall include
the time, date and location of the meeting, as well as a general description of the modification to
be discussed.
B. Limitations of the Districts Powers and Service Plan Amendment
1. Operations and Maintenance Limitation. "Operations and maintenance"
shall refer to all adtions necessary to maintain the Public Improvements including, but not
limited to. replacement of deteriorated materials and structures (as determined by County
inspection), mowing, seeding_ dust control, painting and inlet and pipe cleanouts.
Specifically, the Districts shall be responsible for the operation and maintenance of all
drainage facilities including detention ponds, drainage swales, pipes, inlets, outfalls,
water quality installations and erosion protection.. All streets, curbs, gutters, bridges,
embankments, sidewalks, divider islands and medians, crosswalks. cross-pans and traffic
signals and signage shall also be operated and maintained by the Districts.
The primary purpose of the Districts is to undertake the District Activities,
including the provision of the Public Improvements. The Districts shall dedicate certain
Public Improvements to the County in a manner consistent with the Approved
Development Plan, other rules and regulations of the County and applicable provisions of
the County Code or other appropriate jurisdictions consistent with all applicable rules and
regulations of such jurisdiction. In addition to operations and maintenance of those
Public Improvements identified above, tThe Districts shall specifically be authorized to
own, operate and maintain any part or all of the Public Improvements not otherwise
dedicated to the County or other appropriate jurisdictions, including the Little Thompson
Water District and the St. Vrain ScwerSanitation District, where it can be demonstrated
that having the Districts provide operating and maintenance is in the best interest of the
County and the existing future residents and taxpayers of the District.
2. St. Vrain Sanitation District and Little Thompson Water District.
The Districts hereby acknowledge that the St. Vrain Sanitation District will be the
sole provider of sanitation services within the Districts. The Districts agree not to sell any
sewer taps and will not construct, finance or otherwise provide for any sanitation
treatment planfacility. The Districts shall be expressly prohibited from entering into any
contract with any other sanitary service provider, other than St. Vrain Sanitation District,
for such treatment facilities. , nor enter into any contract with any other service provider,
7
other than St. Vrain Sanitation District, for such treatment facilities. The Districts
authorization shall be limited to the financing and construction of all internal sanitation
improvements needed for the Project, and the financing and construction of sanitation
improvements outside of the Project that are needed to connect the Districts' internal
infrastructure to the St. Vrain Sanitation District's existing lines. Notwithstanding the
aforesaid, the Districts' authorization with respect to the construction of sanitation
improvements outside of the Project shall he exercised only with the prior written consent
of St. Vrain Sanitation District. All suehsanitation —improvements authorized for
financing and construction by the Districts ' t a e o shall
he designed and constructed in accordance with St. Vrain Sanitation District's standards
and shall be conveyed to the St. Vrain Sanitation District upon completion. The Districts
shall not amend this Service Plan in any manner that would affect or expand the sanitary
sewer powers contemplated herein without the express consent of St. Vrain Sanitation
District.
All r + d u 0 1
dedicateA I e the i •ul T1 p W Di Tli Di 6 I1 b
permitted to operate and maintain such water improvements only as necessary prior to
final c eyance—to the Little "T h `�1 Di The Districts hereby
acknowledge that the Little Thompson Water District will be the sole provider of water
services within the Districts. The Districts authorization shall be limited to the financing
and construction of all internal water improvements needed for the Project, and the
financing and construction of water improvements outside of the Project that are needed
to connect the Districts' internal infrastructure to the Little Thompson Water District's
existing lines. All water improvements authorized for financing and construction by the
Districts shall be designed and constructed in accordance with Little Thompson Water
District's standards and shall be conveyed to the Little Thompson Water District upon
completion. The Districts shall not amend this Service Plan in any manner that would
affect or expand the water powers contemplated herein without the express consent of the
Little Thompson Water District.
32. Construction Standards Limitation. The Districts will ensure that the
Public Improvements to be dedicated to the County or other appropriate jurisdiction are
designed and constructed in accordance with the standards and specifications of the
County and/or of other appropriate jurisdictions, as applicable. The District will obtain
approval of civil engineering plans and permits for construction and installation of Public
Improvements from the County, or other appropriate governing jurisdictions. All Public
Improvements constructed by the District for dedication to the County will be subject to
review, monitoring and inspection by the County.
d3. Debt Limitation. The maximum outstanding Debt of the Districts shall
not exceed $166,500,000.00 without the approval of the County. The Debt Limitation
shall not be increased unless one or a combination of the following described factors
changes: (i) the projected interest rate on the Debt to be issued by the Districts; (ii) the
projected assessed valuation of the property within the Districts, (iii) the projected rate of
absorption of the assessed valuation within the Districts; or, (iv) the rate of inflation is
8
demonstrated to be in excess of three percent (3%). In the event that any of the
previously described factors changes, leading to increased debt capacity for the Districts,
as determined by an investment banking firm or financial advisor, the Debt Limitation
may increase up to 150% of the original amount set forth herein. Any increase in the
Debt Limitation, as permitted herein, shall require that the Districts provide a forty-five
(45) day published and written notice to the County pursuant to Section 32-1-207(3)(b),
C.R.S., along with a report from the financial advisor described above, documenting the
basis for the increase in the Debt Limitation. If, within forty-five (45) days of the
publication of such notice, the County expresses to the Districts a written objection to the
proposed action, then the proposed action shall be considered a material modification of
the Service Plan and shall be resolved only in accordance with Section 32-1-207(2),
C.R.S. The vote by the Boards of the Directors to increase the Debt Limitation which
precedes the notice to the County, must occur at a public meeting of the Districts for
which the Districts have sent written notification via U.S. mail at least fourteen (14) days
and not more than thirty (30) days in advance of such a meeting to all electors, residents,
and land owners. Such notice shall include the time, date and location of the meeting, as
well as a general description of the modification to be discussed.
54. Bankruptcy Limitation. All of the limitations contained in this Service
Plan, including, but not limited to, those pertaining to the Maximum Debt Mill Levy,
Maximum Debt Mill Levy Imposition Term and the Fees have been established under the
authority of the County to approve a Service Plan with conditions pursuant to Section
32-1-204.5, C.R.S. It is expressly intended that such limitations:
(a) shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) are, together with all other requirements of Colorado law, included
in the "political or governmental powers" reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C.) Section 903, and are also included in the
"regulatory or electoral approval necessary under applicable nonbankruptcy law"
as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy
Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the
Maximum Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be
deemed a material modification of this Service Plan pursuant to Section 32-1-207, C.R.S.
and shall not be an authorized issuance of Debt unless and until such material
modification has been approved by the County as part of a Service Plan Amendment.
65. Eminent Domain. The Districts shall have the power to exercise the
power of eminent domain, but only in connection with carrying out the Districts'
essential purposes and functions and the Districts' Primary Infrastructure Plan, provided
further, that the use of eminent domain shall be undertaken in strict compliance with state
and federal law. In no event shall the Districts use their eminent domain powers for
water storaue purposes without providing a notice to the County in accordance with
Section 32-1?07(3)(b). C.R.S. . The Primary Infrastructure Plan is preliminary in nature
9
and shows only one possible configuration for improvements to be built, acquired and/or
financed by the Districts. Approved Development Plans and other forces outside of the
control of the Districts may force the Districts to modify the configuration to best serve
the needs of the residents and property owners within the Project. The Districts shall be
authorized to make non-material changes to the Preliminary Development Plan to best
serve the evolving needs of the Project. Such non-material changes shall require no
additional authorization from the County. The use of eminent domain or a material
change in the Primary Infrastructure Plan by the Districts not otherwise contemplated
herein or required by an Approved Development Plan shall require forty-five (45) day
published and written notice to the County pursuant to Section 32-1-207(3)(b), C.R.S. If,
within forty-five (45) days of the publication of such notice, the County expresses to the
Districts a written objection to the proposed action, then the proposed action shall be
considered a material modification of the Service Plan and shall be resolved only in
accordance with Section 32-1-207(2), C.R.S. The vote by the Board of Directors to enter
into such an Intergovernmental Agreement which precedes the notice to the County, must
occur at a public meeting of the District for which the District has sent written
notification via U.S. mail at least fourteen days and not more than thirty days in advance
of such a meeting to all electors, residents, and land owners. Such notice shall include the
time, date and location of the meeting, as well as a general description of the
modification to be discussed.
76. Service Plan Amendment Requirement. This Service Plan has been
designed with sufficient flexibility to enable the Districts to provide required services and
facilities under evolving circumstances without the need for amendments. Actions of the
Districts that violate the limitations set forth herein shall be deemed to be material
modifications to this Service Plan and the County shall be entitled to all remedies
available under State and local law to enjoin such actions.
C. Primary Infrastructure Plan
The District's Primary Infrastructure Plan includes an estimate of the initial costs of the Public
Improvements which may be the subject of one or more District Activities and projects a total
cost for the Public Improvements of approximately $99,446,205 in 2006 dollars, or $129 million
assuming 5% annually compounded inflationary increases. Actual Public Improvements costs
will vary based in part upon applicable Approved Development Plans. The Districts shall have
the discretion, subject to the Debt Limitation, to determine which Public Improvements will be
financed by the Districts and the specific timing associated with the same.
D. IGAs
1. District IGAs. The Districts collectively will undertake the District Activities.
Accordingly, the Districts are expected to enter into the District IGAs, which will define
the relationships among the Districts concerning the applicable District Activities.
2. County IGA. The County and the Service District may enter into an IGA, if
required by the County, regarding the nature of the relationship between the Service
District and the County, and setting forth various procedures and agreements regarding
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the construction, ownership, operation and maintenance of improvements constructed by
the Service District.
3. Other IGAs. To the extent practicable, the Service District may enter into
additional intergovernmental and private agreements to better ensure long-term provision
of the improvements and services and effective management. Agreements may also be
executed with property owner associations and other service providers. All such
agreements are authorized to be provided by each, pursuant to the Colorado Constitution,
Article XIV, Section 18(2)(a) and Section 29-1-201, et seq., C.R.S. Notwithstanding, any
and all intergovernmental agreements not expressly contemplated herein shall require
forty-five (45) day notice publication and written notice to the County pursuant to
Section 32-1-207(3)(b), C.R.S. If the County expresses written objection to the proposed
action, the proposed action shall be considered a material modification of the Service
Plan and shall be resolved only in accordance with Section 32-1-207(2) C.R.S. The vote
by the Board of Directors to enter into such an intergovernmental agreement which
precedes the notice to the County, must occur at'a public meeting of the District for
which the District has sent written notification via U.S. mail at least fourteen (14) days
and not more than thirty (30) days in advance of such a meeting to all electors, residents,
and land owners. Such notice shall include the time, date and location of the meeting, as
well as a general description of the modification to be discussed.
4. Extraterritorial Agreements. With the specific exception of facilities to be
constructed outside the boundaries of the Districts and which are necessary for the
development of the Project and are set forth as part of the Primary Infrastructure Plan, the
Districts may only provide services to properties outside the Districts' Service Area
pursuant to extraterritorial service agreements with the written consent of the County's
Board of County Commissioners. Any extraterritorial service agreements entered into by
the District that are not described in the Service Plan shall require forty-five (45) day
notice publication and written notice to the County pursuant to Section 32-1-207(3)(b),
C.R.S. If, within forty-five (45) days of the publication of such notice, the County
expresses to the District a written objection to the proposed action, then the proposed
action shall be considered a material modification of the Service Plan and shall be
resolved only in accordance with Section 32-1-207(2), C.R.S. The vote by the Board of
Directors to enter into such an extraterritorial agreement which precedes the notice to the
County, must occur at a public meeting of the District for which the District has sent
written notification via U.S. mail at least fourteen (14) days and not more than thirty (30)
days in advance of such a meeting to all electors, residents, and land owners. Such notice
shall include the time, date and location of the meeting, as well as a general description of
the modification to be discussed.
VI. FINANCIAL PLAN
A. General
The Districts shall be authorized to undertake the District Activities from any
legally available revenues, including but not limited to the proceeds of Debt to be issued by the
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Districts. The Financial Plan for the Districts shall be to issue such Debt as the Districts can
reasonably pay from time to time within the Maximum Debt Mill Levy Imposition Term from
revenues derived from the Maximum Debt Mill Levy, Fees and other legally available revenues.
Debt shall be permitted to be issued subject to the Debt Limitation, on a schedule, in such
amounts and in such year or years as the Districts determine shall meet the needs of the Financial
Plan referenced above and shall be phased to serve development as it occurs. It is anticipated
that the Developer shall provide initial and continuing funding to the Districts subject to
reimbursement of the principal amount plus accrued interest as is further described in the
Financial Plan for the Districts. A consolidated pro forma Financial Plan is attached hereto as
Exhibit E. The attached Financial Plan is an illustration of the manner in which the Public
Improvements, developer advances and other services of the Districts may be financed; however,
the final terms of such financing shall be determined by the Districts, subject to the parameters
established within this Service Plan.
B. Maximum Net Effective Interest Rate and Maximum Underwriting Discount
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued, but the interest rate shall not exceed the Maximum Net Effective Interest Rate. The
underwriting discount on any Debt shall not exceed the Maximum Underwriting Discount. Debt,
when issued, will comply with all relevant requirements of this Service Plan, and State and
Federal law then applicable to the issuance of public securities.
C. Maximum Debt and Maximum Aggregate Mill Levy.
The "Maximum Debt Mill Levy" shall be the maximum mill levy a District is
permitted to impose upon the taxable property within such District for payment of Debt, and
shall be fifty (50) mills; provided that if, on or after January 1, 2006, there are changes in the
method of calculating assessed valuation or any constitutionally mandated tax credit, cut or
abatement, the Maximum Debt Mill Levy may be increased or decreased to reflect such changes,
such increases or decreases to be determined by the District Board in good faith (such
determination to be binding and final) so that to the extent possible, the actual tax revenues
generated by the mill levy, as adjusted for changes occurring after January 1, 2006, are neither
diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in
the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed
valuation.
The "Maximum Aggregate Mill Levy" shall be the maximum aggregate mill levy a
District is permitted to impose upon the taxable property within such District for any purpose,
and shall be sixty—five (65) mills; provided that if, on or after January 1, 2006, there are changes
in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut
or abatement, the Maximum Aggregate Mill Levy may be increased or decreased to reflect such
changes, such increases or decreases to be determined by the District Board in good faith (such
determination to be binding and final) so that to the extent possible, the actual tax revenues
generated by the mill levy, as adjusted for changes occurring after January I, 2006, are neither
diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in
the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed
valuation.
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Although a mill levy imposed by a District for operations and maintenance may exceed
fifteen (15) mills as part of the Maximum Aggregate Mill Levy Cap, at no time may the
Maximum Debt Mill Levy exceed fifty (50) mills, subject to adjustment as provided herein.
All issuance of Debt payable from a pledge of ad valorem property taxes shall be deemed
to be in compliance with the Financial Plan so long as the Minimum Criteria (as set forth below),
have been met. The term "Minimum Criteria" shall mean that such Debt: (a) is subject to the
Maximum Debt Mill Levy, as required by this Service Plan; (b) is in compliance with the
conditions set forth in Section VI. F, below; and (c) does not exceed the Debt Limitation, when
aggregated with other outstanding Debt that is subject to the Debt Limitation.
D. Maximum Debt Mill Levy Imposition Term.
The phasing associated with the Public Improvements is such that it would be
impracticable, if not impossible, to issue all Debt of the Districts within fifteen (15) years from
the date of the first debt issuance. Notwithstanding, any individual Debt issuance shall mature
not later than thirty (30) years from its date of issue, including any and all refundings.
E. Debt Repayment Sources
Each of the Districts may impose a mill levy on taxable property within their
boundaries as a primary source of revenue for repayment of Debt service and for operations and
maintenance. The Districts also may rely upon other revenue sources authorized by law from
time to time. At the Districts' discretion, these may include the power to assess Fees, as
provided in Section 32-1-1001(1), C.R.S. In no event shall the mill levy in any District exceed
the Maximum Aggregate Mill Levy, Maximum Debt Mill Levy or the Maximum Debt Mill Levy
Imposition Term, as specifically described herein.
F. Security for Debt
The Districts shall not pledge any revenue or property of the County as security
for the indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be
construed as a guarantee by the County of payment of any of the Districts' obligations; nor shall
anything in the Service Plan be construed to create any responsibility or liability on the part of
the County in the event of default by the Districts in the payment of any such obligation.
G. District Elections
Not later than thirty (30) days prior to an election thereon, proposed ballot questions for a
formation election, debt authorization or De-Brucing will be submitted to the County for filing
and review. The County shall have the right to object to any ballot questions not in compliance
with the Service Plan as a major modification of the District's Service Plan pursuant to Section
32-1-207(3)(a), C.R.S.
H. Districts' Operating Costs
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The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the districts' organization and initial
operations are approximately $250,000. The Districts' operating costs shall be determined from
time to time pursuant to annual budgeting as required by Colorado law. All such costs may be
paid from legally available revenues of the District, which may be derived from the Districts'
Maximum Aggregate Mill Levy and other Fees that may be imposed upon residents, property
owners and other persons using the District's facilities.
VII. DISSOLUTION
After all bonds or other debt instruments have been issued by the Districts and adequate
provision has been made for payment of all Debt of the Service District and Financing Districts,
the electorate of the Districts will have the opportunity to consider either the consolidation of the
Service District and Financing Districts into a single entity, or the dissolution of the Service
District and/or Financing Districts in accordance with state law. The Service District and
Financing Districts will consider consolidation and/or dissolution at the time each District's Debt
has been paid and adequate provision has been made for operation of all the Service District
facilities. In the event the obligation for operation is undertaken by another party, or is otherwise
no longer the responsibility of the applicable District, such District shall be required to dissolve.
Ultimately, control of these decisions will rest with the electorate in each District.
VIII. CONCLUSION
It is submitted that this Service Plan for the Districts, as required by Section 32-1-203(2),
and Section 32-1-204.5, C.R.S., establishes that:
A. There is sufficient existing and projected need for organized service in the area to
be serviced by the Districts;
B. The existing service in the area to be served by the Districts is inadequate for
present and projected needs;
C. The Districts are capable of providing economical and sufficient service to the
area within their proposed boundaries;
D. The area to be included in the Districts does have, and will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis;
E. That adequate service is not, or will not be available to the area through the
County, other existing municipal or quasi-municipal corporations, including existing special
districts, within a reasonable time and on a comparable basis;
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F. That the facility and service standards of the Districts are compatible with the
facility and service standards of the County within which the Districts are to be located and each
municipality which is an interested party under § 32-1-204(1), C.R.S.;
G. The proposal is in substantial compliance with any master plan adopted pursuant
to § 30-28-106, C.R.S.;
H. That the proposal is in compliance with any duly adopted city, county, regional,
or state long-range water quality management plan for the area; and
I. That the continued existence of the Districts will be in the best interests of the
area proposed to be served.
Therefore, it is hereby respectfully requested that the Board of County Commissioners of
the Weld County, Colorado, which has jurisdiction to approve this Service Plan by virtue of
Section 32-1-204.5, C.R.S., et seq., as amended, adopt a resolution, which approves this
"Consolidated Service Plan for St. Vrain Lakes Metropolitan District Nos. 1 through 4" as
submitted.
RESPECTFULLY SUBMITTED this day of , 2006.
Attorneys for the Proponents of the Districts
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SVLMD\SPLAN MER 1152050406
0799.0003e
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EXHIBIT A
Legal Descriptions
1
EXHIBIT B
Map of Initial District Boundaries
2
EXHIBIT C
Projected District Infrastructure Costs
3
EXHIBIT D
Maps Depicting Public Improvements
4
EXHIBIT E
Financial Plan
5
EXHIBIT F
Statutory Considerations
A. There Is Sufficient Existing And Projected Need For Organized Service In
The Area To Be Served By The Districts (32-1-203(2)(a)). The Financing Plan and the
content of this Service Plan describe the overall development plans for the Project. The Project
will require substantial Public Improvements, in excess of $99,000,000 in order to facilitate
build-out. Implementation of an organized and coordinated financing and phased construction
program through the proposed Districts is crucial for a development of this size and scope.
Accordingly, the demand for the services and facilities to be provided by the Districts is
demonstrable.
B. The Existing Service In The Area To Be Served By The Districts Is
Inadequate For The Present And Projected Needs (32-1-203(2)(b))/Adequate Service
Through Other Governmental Entities, Including Existing Special Districts, Will Not Be
Available Within A Reasonable Time And On A Comparable Basis (32-1-203(2.5)(a)).
There are currently no other entities in existence in the Project area which have the ability and/or
desire to undertake the design, financing and construction of improvements needed for the
community. It is also the developer's understanding that the County does not consider it feasible
or practicable for the County to provide the necessary services and facilities for the Project.
Consequently, use of the new Districts is deemed necessary for the provision of public
improvements in the Project. Therefore, provision of facilities will not be available through other
institutions.
C. The Districts Are Capable Of Providing Economical And Sufficient Service
To The Area Within Their Boundaries (32-1-203(2)(c)). The proposed Districts are necessary
in order to provide the most economical and efficient means of undertaking the District
Activities to serve existing and future residents within their respective boundaries. The Financing
Plan attached as Exhibit E demonstrates the feasibility of providing the District Activities
proposed herein on an economical basis. The formation of the Districts will facilitate the
financing of the proposed Public Improvements in the most cost effective manner as the Districts
will have access to tax-exempt financing not otherwise available to private entities.
D. The Area To Be Included In The Districts Has, Or Will Have, The Financial
Ability To Discharge The Proposed Indebtedness On A Reasonable Basis (32-1-203(2)(d)).
The matters described in items I through 3 of this Exhibit establish that the creation of the
Districts is in the best interests of the area to be served, in that they establish a demand for public
improvements that otherwise will be unmet by other governmental entities. The Districts also
offer the advantage of obtaining public financing to fund these improvements. In addition, the
use of a multiple district structure is beneficial, as it permits: (a) the phasing of improvements to
occur according to logical development modules, resulting in a more specific association of cost
with benefit and less incentive to initiate public improvement programs too far in advance of
development; (b) the ability to arrange for delivery of public infrastructure in a manner that will
conform to the approved development plans that will be associated with the Project in the future,
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thus permitting development of the Project in accordance with County expectations; and
(c) maintenance of a reasonably uniform mill levy and fee structure through coordinated
planning and financing for construction of public improvements.
E. That The Facility And Service Standards Of The Districts Are Compatible
With The Facility And Service Standards Of The County Within Which The Districts Are
To Be Located And Each Municipality Which Is An Interested Party Under § 32-1-204(1),
C.R.S. (32-1-203(2.5)(b)). The Service Plan and all applicable rules and regulations of the
County and other jurisdictions require that all facility and service standards associated with the
Public Improvements must be met. Consequently, all facility and service standards will be
compatible with all governing jurisdictions.
F. The Proposal Is In Substantial Compliance With Any Master Plan Adopted
Pursuant To § 30-28-106, C.R.S. (32-1-203(2.5)(c))//That The Proposal Is In Compliance
With Any Duly Adopted City, County, Regional, Or State Long-Range Water Quality
Management Plan For The Area (32-1-203(2.5)(d)). The Service Plan clearly states that all
Public Improvements must be in accordance applicable ordinances, codes and regulations of the
County, inclusive of the applicable Master Plan and any Water Quality Management Plan. The
Service Plan further makes it clear that the County has exclusive jurisdiction over all property
development issues within the boundaries of the Districts.
G. That The Creation of the Proposed Special Districts Will Be In The Best
Interests Of The Area Proposed To Be Served (32-1-203(2.5)(d)). The matters in this Service
Plan establish that the creation of the Districts is in the best interests of the area to be served, in
that they establish a significant demand for public improvements that will not otherwise be
provided by existing governmental entities. The Districts offer the advantage of obtaining public
financing to fund these improvements. In addition, the use of a multiple district structure is
beneficial, as it permits: (a) the phasing of improvements to occur according to logical
development modules, resulting in a more specific association of cost with benefit and less
incentive to initiate public improvement programs too far in advance of development; (b) the
ability to arrange for delivery of public infrastructure in a manner that will conform to the
Approved Development Plans that will be associated with the Project in the future, thus
permitting development of the Project in accordance with County expectations; and
(c) maintenance of a reasonably uniform mill levy and fee structure through coordinated
planning and financing for construction of public improvements.
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