Metropolitan District - General Explanation
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.
1. 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.
2. In accordance with the Districts’ Service Plan, the Districts may provide the following public improvements and services:
(a) Sanitation and Storm Drainage
(b) Water
(c) Streets
(d)Traffic and Safety Controls
(e) Parks and Recreation
(f) Transportation
(g) Television Relay and Translator
(h) Mosquito and Pest Control
(i) Security
(j) Covenant Enforcement
The Districts have undertaken or anticipate undertaking construction of the following categories of public improvements:
(a)Wastewater system;
(b) Storm Drainage;
(c) Portable water system;
(d) Non-potable irrigation water system;
(e) Street system and traffic controls; and
(f) Park and recreation improvements.
The Districts provide or will provide the following ongoing services: operation and maintenance services for the above listed public improvements that are not dedicated to the City of Loveland and owned by the Districts.
By separate agreement, District No. 1 is anticipated to provide for the construction, operation and maintenance of the public improvements and District No. 2 will assist in providing District No. 1 with funding for the public improvements and services.
3. In accordance with the Districts’ Service Plan, the total amount of debt the Districts can incur to provide and pay for public infrastructure is as follows:
The maximum amount of Debt which may be incurred by the Districts collectively shall be $18,815,000 (“Debt Limit”); provided, however, that for purposes of the Debt Limit, so as to avoid the “double counting” of Debt, any pledge by a District to remit certain revenues to another District for application to the payment of bonds issued by the receiving District shall not count against the Debt Limit, it being the intention that only the total amount of Debt issued by the issuing District count against the Debt Limit.
4. In accordance with the Districts’ Service Plan, the following revenue may be used to pay for the Districts’ debt:
All Debt issued by the Districts may be payable from any and all legally available revenues of the Districts, including general ad valorem taxes to be imposed upon all taxable property within the Districts. The Districts may receive revenue from specific ownership taxes, Proponent advances, interest income, oversizing and reimbursement agreements with the City or other entities, and any other legally permissible sources. Revenues from these additional sources, including, but not limited to specific ownership taxes, may be pledged to the payment of Debt, as determined by the Districts.
5.In accordance with the Districts’ Service Plan, the maximum mill levy the District may assess to pay for its debt is as follows:
The maximum mill levy District No. 1 and District No. 2 each may impose for the payment of principal of and interest on Debt shall be 50 mills (the “Debt Mill Levy Cap”). The Debt Mill Levy Cap shall be subject to adjustment if the laws of the state change with respect to the assessment of property for taxation purposes, the ratio for determining assessed valuation changes, or other similar changes occur after January 1, 2021. In any of these events, the Debt Mill Levy Cap shall be automatically adjusted so that the collective tax liability of property owners within the Districts neither increases nor decreases as a result of any such changes, thereby maintaining a constant level of tax receipts of the Districts and overall tax payments from property owners.
6. 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.