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 Board of Directors of the District.
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 District’s Service Plan, the District may provide the following public improvements and services:
(a) Park and Recreation;
(b) Streets;
(c) Safety Protection;
(d) Water;
(e) Sanitation;
(f) Mosquito Control; and
(g) Covenant Enforcement and Design Review Services
The District has undertaken or anticipates undertaking construction of the public improvements listed above.
The District provides or will provide the following ongoing services: operation and maintenance services for the above listed public improvements that are not dedicated to the Town of Gypsum or other governmental entity and covenant enforcement and design review services.
3. In accordance with the District’s Service Plan, the total amount of debt the District can incur to provide and pay for public infrastructure is as follows:
The Service Plan does not cap the amount of debt that may be issued by the District. However, pursuant to the Service Plan, it is proposed that a total maximum amount of $3,000,000 of bonds will be submitted to the electors of the District for their approval at an election. The amount to be voted exceeds the amount of bonds anticipated to be sold, as indicated in the Financial Plan in the Service Plan, to allow for unforeseen contingencies and increases in construction costs due to inflation, and to cover all issuance costs, including capitalized interest, reserve funds, discounts, legal fees and other incidental costs of issuance. Such limitation is not applied to refunding of the bonds.
4. In accordance with the District’s Service Plan, the following revenue may be used to pay for the District’s debt:
Property taxes generated from a debt mill levy will produce sufficient revenue to support debt retirement throughout the bond repayment period. In addition, the District may capitalize interest to permit payment of interest during the time lapse between development of taxable properties and the collection of tax levies. Intereat income through the reinvestmetn of construction funds will provide additional funds. These revenue sources should be sufficient to reite the proposed indetedness if growth occurs as projects; otherwise increases in the mill levy (up to the Mill Leby Cap) and/or the imposition of rates, tolls, fees and charges may be necessary.
5. In accordance with the District’s Service Plan, the maximum mill levy that the District may assess to pay for its debt is as follows:
The District may issue general obligation bonds only if the mill levy pledged for the repayment of the bonds (together with the mill levy pledge on any general obligations of the District) will not exceed 40 mills (“Mill Levy Cap”); provided, however, that in the event the method of calculating assessed valuation is changed, after the date of the Service Plan, by change in law, change in method of calculation, or in the event of any legislation or constitutionally mandated tax credit, cut or abatement, the mill levy limitation applicable to such debt may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board in good faith so that, to the extent, the actual tax revenue generated by the mill levy, as adjusted, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ration of actual valuation to assessed valuation shall be deemed to be a change in the method of calculating assessed valuation.
Residents within the 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.