HomeMy WebLinkAbout14694RESOLUTION NO. 14694
A RESOLUTION APPROVING THE SERVICE PLAN FOR VILLA
BELLA METROPOLITAN DISTRICT NOS. 1-3
WHEREAS, the Service Plan for Villa Bella Metropolitan District Nos. 1-3 was filed with
the City Clerk (the “City Clerk”) of the City of Pueblo, a Colorado Municipal Corporation (the “City”),
pursuant to Sections 32-1-204.5, C.R.S.; and,
WHEREAS, the City Council of the City (the” Council”) held a public hearing on said
Service Plan on September 13, 2021; and,
WHEREAS, notice of said public hearing was duly published in the “Pueblo Chieftain,” a
newspaper of general circulation within the boundaries of the District, on August 27, 2021; and,
WHEREAS, the Council has considered the Service Plan in reference to the information
and criteria required and set forth in Section 32-1-202(2) and Section 32-1-203(2), C.R.S., and in
light of testimony and other evidence presented to it at said public hearing; and,
WHEREAS, the Council hereby finds that the Service Plan should be approved as
provided herein, pursuant to Section 32-1204.5, C.R.S; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The information contained within the Service Plan for the Villa Bella Metropolitan District
Nos. 1-3 satisfies the requirements of Section 32-1-202(2), C.R.S.
SECTION 2.
Evidence satisfactory to the Council of each of the following was presented, as provided
in Section 32-1-203(2), C.R.S.:
a. There is sufficient existing and projected need for organized service in the area to
be served by the proposed Districts; and
b. The existing services in the areas to be served by the proposed Districts are
inadequate for present and projected needs; and
c. The Districts are capable of providing economical and sufficient services to the
areas within its proposed boundaries; and
d. The areas to be included in the Districts does have, and will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis.
SECTION 3.
The requirements of Section 32-1-204.5, C.R.S., and of the applicable provisions of the
Pueblo Municipal Code, if any, relating to the contents and standards for approval of the Service
Plan, have been fulfilled.
SECTION 4.
The Council hereby approves and authorizes the attachment of this Resolution to the
Petition for organization of the Districts in accordance with Section 32-1-205, C.R.S. and Section
32-1-301, C.R.S.
SECTION 5.
The officers and staff of the City are authorized to perform any and all acts consistent with
the intent of the Resolution to implement the policies and procedures described herein.
SECTION 6.
This Resolution shall become effective immediately upon final passage and approval.
INTRODUCED September 13, 2021
BY: Robert Schilling
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
CITY CLERK
City Clerk’s Office Item # J-2
BACKGROUND PAPER FOR PROPOSED
RESOLUTION
COUNCIL MEETING DATE: September 13, 2021
TO: President Lawrence W. Atencio and Members of City Council
CC: Nicholas A. Gradisar, Mayor
VIA: Marisa Stoller, City Clerk
FROM: Scott Hobson, Acting Director of Planning and Community Development
SUBJECT: A RESOLUTION APPROVING THE SERVICE PLAN FOR VILLA BELLA
METROPOLITAN DISTRICT NOS. 1-3
SUMMARY:
The property owner who is the proponent for the creation of the Villa Bella Metropolitan
Districts Nos.1-3 established under Title 32 of the Colorado Revised Statutes have
submitted a Service Plan to the City for the proposed districts. The area where the
districts would be established totals approximately 562 acres and includes a portion of
the area that was annexed into the City of Pueblo on June 6, 1987, by Ordinance No.
5404. A future inclusion area totaling approximately 188 acres is also included in the
Service Plan. The future inclusion area is annexed into the City and includes a portion of
the Walking Stick Vistas subdivision. In accordance with the requirements of Title 32,
Section 32-1-204.5, C.R.S., the City Council is required to approve the Service Plan of
the districts prior to proceeding with the remaining steps required to form the district under
state statutes.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
City Council’s approval of the Service Plan for the Villa Bella Metropolitan Districts Nos.
1-3 (“Service Plan”) is the initial step in creating a metropolitan district under Title 32 of
the Colorado Revised Statutes. The proposed metropolitan districts total approximately
562 acres that is generally located north of Cesar Chavez Boulevard (SH 47) and west
of Baculite Mesa Road. The property within the districts is within the territories that were
formerly within the boundary of the Thunder Village Metropolitan District. The district
property is contained within the boundary of the amended Villa Bella Planned Unit
Development that was approved by City Council on May 24, 2021, through Ordinance
No. 9938. The Service Plan encompasses the areas of the three metropolitan districts
and includes the finance, construction, operation and maintenance of the facilities and
improvements described within the service area.
The metropolitan districts are proposed to be formed as separate distinct legal entities
from the City with their own elected board of directors under the Colorado Special District
Act. The Districts will have the authority, subject to voter approval, to impose mill levies
on properties in the Districts for the specific purposes, including the operation of the
district’s authorized services and debt payments, as described in the Service Plan. The
proposed metropolitan districts may not deviate in a material manner from the
requirements of the Service Plan.
The Service Plan consists of a financial analysis and general engineering plans showing
how proposed facilities and services will be provided and financed. The approval of the
Service Plan by City Council does not imply any approval by the City of any development
or improvement plan that is utilized or described in the Service Plan.
Villa Bella Districts Nos. 1-3 will be organized to finance, construct, own, manage and
operate the public improvements throughout the development areas. The Coordinating
District will be responsible for managing the construction and operation of the public
facilities and improvements within the development areas, and for providing funding to
support costs related to the necessary services and improvements. The Financing
Districts (Districts Nos. 2 and 3) will be responsible for financing its respective share of
the improvements and associated operations and maintenance costs, as described in the
respective plan for each Financing District. It is anticipated that the property within the
boundaries of the Coordinating District will be developed for residential uses upon
finalization of development plans.
The Service Plan provides for the design, acquisition, construction, installation and
financing of certain water, sanitation, street, safety protection, park and recreation,
transportation, mosquito control, security, covenant enforcement, and fire protection
improvements and services within and without the Service District’s boundaries. The City
is not obligated to own, operate, or maintain any of the improvements provided by the
district. Although any of the improvements that will ultimately be accepted by the City will
be required to be designed and constructed in compliance with City Standards and
provisions of the Municipal Code. Those improvements not dedicated to City for
ownership, operation, and maintenance may be owned, operated, and maintained by the
district or other appropriate entities.
To finance both the on-site and off-site improvements, the Financial Plan provides for a
maximum mill levy the Districts may impose for the payment of principal and interest on
Debt at fifty (50) mills, along with a maximum of ten (10) mills for operations and
maintenance.
FINANCIAL IMPLICATIONS:
The approval of the Service Plan does not impose any liability on the City nor create any
responsibility or liability on the part of the City for any of the District’s obligations.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
The notice of the filing of the Service Plan with the City Clerk has been distributed to all
existing taxing districts within the service area of the proposed district. The notice of the
hearing on the proposed Service Plan has been provided to the taxing districts.
ALTERNATIVES:
If the Service Plan is not approved or not approved in the timeframe to meet the State
Statutory requirements for the proponents to conduct an election to form the district, the
proponents will not be able to hold another election, per state statutes until May 2022.
RECOMMENDATION:
Approval of the Resolution.
Attachments:
Proposed Resolution
Services Plan for the Villa Bella Metropolitan District, Nos. 1-3
Service Plan Review Application
Legal Notice for Public Hearing on Service Plan
CONSOLIDATED SERVICE PLAN
FOR
VILLA BELLA METROPOLITAN
DISTRICT NOS. 1-3
Prepared
by
COLLINS COCKREL & COLE P.C.
390 Union Blvd. Suite 400
Denver, Colorado 80228
Submitted: August ___, 2021
Approved: _______, 2021
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TABLE OF CONTENTS
I. INTRODUCTION..........................................................................................1
A. General Overview...........................................................................................1
1.Multiple District Structure..............................................................................3
2.Benefits of Multiple District Structure...........................................................4
a. Coordinated Services......................................................................................4
b.Avoids Premature Debt Issuance....................................................................4
c. Equitable Debt Allocation...............................................................................4
d.Bond Interest Rates.........................................................................................5
3.Initial Boundaries/Expansions........................................................................5
4.Future Consolidation/Dissolution of Districts................................................5
5.Existing Services and Districts.......................................................................6
B.Contents of Service Plan.................................................................................7
C.Modification of Service Plan..........................................................................7
II. NEED FOR NEW DISTRICTS AND GENERAL POWERS.......................7
A. Need for Metropolitan Districts......................................................................7
B. General Powers of Districts............................................................................8
1.Sanitation and Storm Drainage.......................................................................9
2.Water...............................................................................................................9
3.Non-Potable Water..........................................................................................9
4.Streets............................................................................................................10
5.Traffic and Safety Controls...........................................................................10
6.Parks and Recreation.....................................................................................10
7.Mosquito and Pest Control............................................................................10
8.Security Services...........................................................................................11
9.Covenant Enforcement and Design Review.................................................11
10.Fire Protection and Emergency Services......................................................11
11.Legal Powers.................................................................................................11
12.Other.............................................................................................................11
III. DESCRIPTION OF FACILITIES AND IMPROVEMENTS......................12
A. General..........................................................................................................13
B. General Design Standards/Dedication/Operations.......................................13
C. Wastewater System.......................................................................................14
D.Storm Drainage.............................................................................................14
1.Generally.......................................................................................................14
2.Culverts.........................................................................................................14
E. Water System................................................................................................14
1.Overall Plan..................................................................................................14
2.Design Criteria..............................................................................................14
F. Street System and Traffic Safety..................................................................15
1.General..........................................................................................................15
G. Signals and Signage......................................................................................15
H. Parks and Recreation/Landscaping...............................................................15
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I. Mosquito and Pest Control............................................................................16
J. Fire Protection...............................................................................................16
K. Estimated Cost of Facilities..........................................................................16
IV. DEVELOPMENT PROJECTIONS..............................................................16
V. PROPOSED AGREEMENTS......................................................................16
A. Master Intergovernmental Agreement..........................................................16
B. Other Agreements/Authority........................................................................17
VI. OPERATION AND MAINTENANCE COSTS..........................................17
VII. FINANCING PLAN.....................................................................................17
A. Financing of Proposed Facilities and Services.............................................17
1.Debt...............................................................................................................19
2.Master IGA Obligations................................................................................21
3.General..........................................................................................................21
4.Risk Disclosure.............................................................................................22
5.Enterprises.....................................................................................................22
6.Rates and Charges.........................................................................................22
7.Maximum Interest Rate and Underwriting Discount....................................22
8.Obligations Issued to District Organizers/Affiliates.....................................22
9.District Revenue Sources..............................................................................23
10.Security for Debt...........................................................................................23
VIII. OTHER REQUIREMENTS/MISCELLANEOUS.......................................24
A. Other Requirements......................................................................................24
B. Miscellaneous...............................................................................................25
C. Intergovernmental Agreement......................................................................26
IX. DISSOLUTION/CONSOLIDATION..........................................................27
X. PROPOSED AGREEMENTS......................................................................27
A.Coordinated Services of Districts.................................................................27
B.Additional Intergovernmental Agreements and Agreements with Private
Entities……………………………………………………………………..27
XI.VOTER AUTHORIZATION.......................................................................28
XII. CONCLUSIONS...........................................................................................28
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LIST OF EXHIBITS
EXHIBIT A-1Legal Descriptions and Mapsof Initial District BoundariesDistrict Nos. 1-3
EXHIBIT A-2Legal Description and Map of Future Inclusion Area
EXHIBIT BVicinity Map
EXHIBIT CFinancing Plan
EXHIBIT DPreliminary Survey of Public Improvements and Costs
EXHIBIT EStatutory Contents of this Service Plan
EXHIBIT FProposedIntergovernmental Agreements
EXHIBIT GNotice of Special District Disclosure Form
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I.INTRODUCTION
A.General Overview.
This Consolidated Service Plan (the “Service Plan”) is submitted pursuant to the
Special District Control Act (the “Act”) (Section 32-1-101, et seq., of the Colorado Revised
Statutes)for the proposed set of metropolitan districts to be called Villa Bella Metropolitan
District Nos. 1-3 (individually referred to as “District” or collectively referred to as the
“Districts”) within the boundaries of the City of Pueblo, Colorado (“Pueblo” or the “City”).
A legal description and boundary map of the Coordinating Districtare contained in Exhibit
A-1to this Service Plan. A vicinity map showing the location of the Coordinating District
is contained in Exhibit Bto this Service Plan.
The Service Plan constitutes a combined service plan for threeTitle 32 metropolitan
districts within the boundaries of the City. The Districts, when organized, will serve the
needs of a proposed 562-acrecommunity to be known as Villa Bella (hereinafterreferred
to as the “Project”).Additionally, a future inclusion area of approximately 188-acres
adjacent to Villa BellaandtheWalking Stick Vista Subdivision (near the Walking Stick
Golf Course) is designated as a “Future Inclusion Area” thatis anticipated tobeincluded
into one or more of the Districts in the future. The Districts are intended to be independent
units of local government, separate and distinct from the City, and, except as may otherwise
be provided for by State or local law or this Service Plan, theiractivities are subject to
review by the Cityonly insofar as they may deviate in a material manner from the
requirements of this Service Plan.
The Districts are generally located generally North of Colorado 47 and West of
Beculite Mesa Road. The property within the Districts are within territories also knownor
formerlywithin the Thunder Village Metropolitan District and the Villa Bellasubdivision.
The Districts initial boundaries referred to as Villa Bella will include approximately 562
acres withproposed expansion areasof approximately 188acres of future inclusion
property (Walking Stick Vistas) to be included in District Nos. 1-3in the future (“Future
Inclusion Area”). The total combined area of approximately 750acres of property
(“Service Area”) is expected to be divided into several development areas planned for
development of residential areas. Allofthe property within the Districts has been annexed
to the City.
The property within the respective boundaries of the Districts shall be subject to the
ordinances, rules and regulations of the City,Annexation and Development Agreements
with the City,and the approval of this Service Plan shall not be construed as representing
approval of any alteration or amendment by the Cityof any such ordinances, rules,
regulations or the Annexation Agreements. The Annexation and Development Agreements
contemplatethe formation of special districts to provide funding and construction of public
infrastructure, facilities, improvements and amenities proposed to be constructed, acquired,
financed and installed within this Project (the “Public Improvements”). Alloftheproperty
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withinthe Districts’boundaries is subject to all of the City’s current ad valorem property
and sales taxes and to any future amendments thereof.
Certain assumptions are made in this Service Plan regarding number and type of
residential units.Although, initial projections of 2,500 single family units have only been
provided for the initial 562 acres.The actual composition and distribution of future
development shall be as determined in accordance with subsequent development approvals
to be sought from the City, and nothing in this Service Plan shall be construed as the City’s
approval of such matters.
The primary purpose of the Districts is to provide a part or all of the Public
Improvements for the Project for the use and benefit of all anticipated inhabitants and
taxpayers of the Districts and in a manner consistent with City-approved development
plans. Most of the Public Improvements will be dedicated to the City. The Districts will
have the power to operate and maintain certain improvements not dedicated to the Cityor
other governmental entitiesincluding, but not limited to park and recreation facilities and
improvements, trails and monumentation, gatehouses, landscaping and other public
improvements and amenities. The types ofPublicImprovements that are anticipated to be
provided for by the Districts shall include the types of facilities and improvements
generally described in Section III, consisting of wastewater systems, storm drainage
facilities, water systems, streets and roadways, traffic and safety facilities, park and
recreation facilities, and mosquito/pest control.
The Districts are being organized to serve as a method by which development can
occur in the Cityin such a way as to eliminate economic risk to the City, provide economic
benefits to property owners, and place the risk of development on property developers.
The Financing Plandiscussed herein has been designed to assure that at no time will
theCityhave any legal responsibility for any of the Districts’ obligations. This Service
Plan is designed to assure that the risk of development remains with the developer until a
sufficient tax base has been achieved to pay the Districts’ debt with reasonable mill levies.
This Service Plan has been prepared with sufficient flexibility to enable the Districts
to provide required services and facilities under evolving circumstances to meet the needs
of the community. While the assumptions upon which this Service Plan are generally based
are reflective of the current zoning for the property within the Districts, the cost estimates
and the Financing Plan are sufficiently flexible to enable theDistricts to provide necessary
services and facilities without the need for repeated amendments to the Service Plan.
Modification of the proposed configuration of improvements, scheduling of construction
of such improvements, as well as the locations anddimensions of various facilities and
improvements shall be permitted to accommodate development needs consistent with
zoning and future development approvals for the property.
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Considerable public infrastructure will be constructed to provide the Public
Improvements necessary for the Project. This Service Plan addresses the Public
Improvements that will be provided by the Districts and demonstrates how the Districts
will work cooperatively to provide the necessary Public Improvements. All Exhibits
referred to herein are attached to the end of this Service Plan.
1.Multiple District Structure. This Service Plan is submitted pursuant
to the requirements of the Special District Control Act §32-1-101, et seq., C.R.S. (the
“Act”). The use of a consolidated Service Plan for the Districts assures proper coordination
of the powers and authorities of the independent Districts, and will help avoid confusion
regarding the separate, but coordinated, purposes of the Districts which could arise if
separate service plans were used. Unless otherwise specifically noted herein, general
provisions of this Service Plan apply to alloftheDistricts. Where possible, however,
specific reference is made to an individual District to help distinguish the powers and
authorities of each District.
It is anticipated that the Districts, collectively, will undertake the financing
and construction, maintenance and operation of the Public Improvements. Villa Bella
Metropolitan DistrictNo. 1 shall be referred to as the “Coordinating District”and Villa
BellaMetropolitan District Nos. 2-3shall be referred to as the “Financing Districts.” This
structure is intended to provide for the fair and equitable allocation of public infrastructure
improvements and services among the property within the Project.
The Financing Plandiscussed in Section VII refers to a preliminary financial
plan for the Districts which is intended to be read as a unified Financing Plan which may
be used for PublicImprovements for the Project. The Coordinating District is responsible
for managing the construction and operation of facilities and improvements needed for the
Project. The Financing Districts are responsible for providing the funding and tax base
needed to support the Financing Plan. Various agreements will be executed by the Districts
clarifying the nature of the functions and services provided by each District. The
agreements are designed to help assure the orderly development of essential services and
facilities, resulting in a community, which will be both an aesthetic and economic asset to
theCity.
The Coordinating District shall be authorized to provide Public
Improvements, facilities, and services to and for the benefit of the entire area of the Project,
including but not limited to acquisition of completed improvements pursuant to the Service
Plan. The Coordinating District will be responsible for managing the construction,
installation, acquisition, and operation of facilities and Public Improvements for the Project
as well as coordinating the financing and management of the public facilities and services
as approved by the Citythroughout the Project. Each Financing District will be authorized
to provide improvements and services, including but not limited to acquisition of
completedimprovements, to the property within and without their respective legal
boundaries, as they may be amended from time to time. The Financing Districts will be
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responsible for producing property tax and other revenue sufficient to pay the costs of
operationsand debt service expenses incurred for the Public Improvements, until such
obligations are discharged, creating mutual benefits for the Projectand the City. The
Coordinating District will have power to impose taxes only within its legal boundaries, but
will be permitted to impose fees and charges in all or any portion of the area within the
Districts, as well as to property outside of the Districts based upon services provided to
such property, subject to the limitations provided in this Service Plan.
The Districts shall be entitled to change the configuration of their internal
boundaries, without changing the total acreage of the Project or reconfiguring the Districts’
Service Area, as their Boards of Directors may deem necessary. Any such internal
reconfiguration shall be submitted to the CityManager. In no event shall any District
include into its legal boundaries any property not located within the corporate limits of the
Cityat the time of inclusion. All changes in the Districts’ boundaries must be made in
compliance with the Act.
2.Benefits of Multiple District Structure. The multiple district structure
offers significant benefits both to the Cityand the Project, including future property
owners. In general, those benefits are: (a) coordinated administration of construction and
operation of public improvements, and delivery of those improvements in a fashion that
supports the orderly development of the Project; (b) avoiding the issuance of debt
prematurely; (c) creating a means for the fair and equitable allocation of costs of public
infrastructure across the Project; and (d) assured compliance with state laws regarding
taxation in a manner which permits the obtaining the benefits of issuance of tax exempt
financing at low interestrates. These benefits are addressed further below:
a.Coordinated Services. Development of the Project will
proceed in several phases, each of which requires the extension of public services and
facilities. The multiple district structure assures that the construction and operation of each
phase of public facilities is primarily administered by in accordance with a long-term
construction and operations program. This is consistent with “best practices” in the
development industry involving projects witha long-term development horizon. Use of the
Coordinating District as the entity responsible for construction of each phase of
improvements and for management of operations will facilitate a well-planned financing
effort through all phases of construction and assists in assuring coordinated extension of
services.
b.Avoids Premature Debt Issuance. The multiple district
structure helps assure that facilities and services needed for future build-out of the Project
will be provided when they are needed, and not sooner. Projects that do not utilize multiple
districts may be motivated to issue debt prematurely, since the prospect of loss of control
over decision making exists.
c.Equitable Debt Allocation. Allocation of the responsibility for
paying debt for capital improvements will continue to be managed through development
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of a unified financing plan for those improvements and through development of an
integrated operating plan for long-term operations and maintenance. Use of the
Coordinating District to manage these functions helps assure that no area within the Project
becomes obligated for more than its share of the costs of capital improvements and
operations. Low-density areas will not bear a disproportionate burden of debt and operating
costs, nor willhigh valued areas bear disproportionate burdens. Intergovernmental
agreements between the Districts will assure that mill levies remain equitable throughout
the Project.
d.Bond Interest Rates. The use of the Coordinating District
and/or the FinancingDistricts to issue bonds to provide for the cost of infrastructure in the
Project will allow for the issuance of bonds at competitive interest rates. The combination
of appropriate management, controlled timing of financing and the ability of the Districts
to obtain attractive interest rates will benefit residents and property owners.
3.Initial Boundaries/Expansions. In order to implement the multiple
district structure, the boundaries of the Coordinating District and the Financing Districts
were configured to approximate the current plan for phases of development.
TheInitial District Boundaries of District Nos. 1-3consists of approximately
562acres.Legal descriptionsand mapsof the boundaries of each of District Nos. 1-3are
attached in Exhibit A-1.The Developer has an option to purchase the balance of the
property to be contained within the legal boundaries of the Districts, identified as the Future
Inclusion Area, which consists of approximately 188 acres of land. Accordingly, the initial
boundaries of the Districts will be expanded and adjusted via the inclusion/exclusion
process to incorporate the balance of the property being acquired by the organizers in this
manner. Thelegal description and map of theexpanded boundaries of the Future Inclusion
Area as they are expected to exist following the purchase of the balance of the property by
theDeveloperare attached in Exhibit A-2.The combined acreage of the Future Inclusion
Area is expected to be contained within the District Nos. 1-3. Following acquisition of all
of the property proposed to be included within the Districts, the combined area of the
Districts is expected to consist of approximately 750 acres (the “Combined Area”). Such
Combined Area is depicted in the vicinity map attached hereto as Exhibit B.
At build out, the assessed valuation of the initial area boundaries of District
Nos. 1-3is expected to be sufficient to reasonably discharge the Debt as demonstrated in
the Financial Plan. The population of District Nos. 1-3at build out is currently estimated
to be approximately 7,500persons based upon an approximation of 3.0 persons per
residence for 2,500residential units.Additional units and population increases are
expected once the future inclusion area is included within the districts and approved
development plans of the City are received.
4.Future Consolidation/Dissolution of Districts.Upon an independent
determination by the City Councilthat the purposes for which the Districts were created
have been accomplished, the Districts shall file petitions in the appropriate District Court
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forconsolidationor dissolutionin accordance with the applicable State statutes. In no
event shall dissolution occur until the Districts have provided for the payment or discharge
of all of their outstanding indebtedness or other financial obligations as required pursuant
to State statutes. Additionally, the Coordinating District and the Financing Districts shall
consider consolidation at the time each District’s debtor other financial obligationshave
been paid.
Following completion of construction of the improvements provided for in
this Service Plan, the dedication of applicable improvements to other governmental
entities, the repayment or discharge of all of the Districts’ outstanding indebtedness and
other financial obligations as required by statute, and the assignment or assumption of all
operating and maintenance responsibilities for the Districts improvements to other entities
or owners’ associations and at such time as the Districts do not need to remain in existence
to discharge their financial obligations or perform their services, the electorate of the
Districts will consider either the consolidation of the Coordinating District and the
Financing Districts into a single entity, or the dissolution of Financing Districts in
accordance with state law at the time each District’s debt has been paid and adequate
provision has been made for operation of all District facilities and improvements.
It is currently planned that the Coordinating District or some form of
consolidated Financing and Coordinating District will continue in perpetuity to maintain
the signage, greenbelts and open spaces, parks and recreation facilities, certain regional
trails, and storm drainage facilities not otherwise dedicated to the Cityor another public
entity, maintenance facilities, landscaping and covenant enforcement for the Districts.
Upon the City Council’sapplication with the Districts’ Boards to dissolve
the Districts pursuant to Title 32, Article 1, Part 7, C.R.S., as amended from time to time,
the Districts’ Boards shall, promptly and in good faith, take the necessary steps either
consolidate or dissolve the Districts in accordance with state statutes. One or more of the
Districts, including the Coordinating District will be allowed to continue for ownership,
operations and maintenance of the District amenities or other public improvements not
otherwise dedicated to the Cityand shall be allowed to retain those powers necessary to
impose and collect taxes or fees to pay for the costs and functions permitted by this Service
Plan or intergovernmental agreement with the City.
5.Existing Services and Districts. There are currently no other entities
in existence in the undeveloped portion of the Project area, which have the intent, ability
and/or desire to undertake the design, financing and construction of improvements needed
for the community. Consequently, use of the Districts is deemed necessary for the provision
of Public Improvements in the Project. The Districts are not overlapped by any other
existing special districts.
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B.Contents of Service Plan.
This Service Plan consists of a preliminary financial analysis and preliminary capital
plan showing how the facilities and services for the Project are expected to be provided
and how those facilities can continue to be provided and financed by the Districts.
Numerous items are included in this Service Plan in order to satisfy the requirements of
law for formation of special districts. Those items are listed in Exhibit Eattached hereto.
This Service Plan satisfies each of these requirements of law. The assumptions contained
within this Service Plan were derived from a variety of sources. Information regarding the
present status of property within the Districts, as well as the current status and projected
future level of similar services, was obtained from the organizers. Capital projections for
public improvements and facilities were provided by M&S Civil Engineering Services.
Piper Sandlerprovided the Financial Plan. Legal advice in the preparation of this Service
Plan was provided by the law firm of Collins Cockrel & Cole, P.C.,which represents
numerous special districts.
C.Modification of Service Plan.
This Service Plan has been designed with sufficient flexibility to enable the Districts
to provide required services and facilities for the Project under evolving circumstances
without the need for numerous amendments. While the assumptions upon which this
Service Plan are generally based are reflective of current zoning for the property within the
Project, the cost estimates and the Financing Plan are sufficiently flexible to enable the
Districts to provide necessaryservices and facilities without the need to amend this Service
Plan. Modification of the general types of services and facilities, as well as changes in
proposed configurations, locations, or dimensions of various facilities and improvements
shall be permitted to accommodate development needs consistent with then-current zoning
for the Project.
II.NEED FOR DISTRICTS AND GENERAL POWERS
A.Need for Metropolitan Districts.
In order to establish compliance with the standards for Service Plan approval set
forth in §32-1-203(1), C.R.S., the following information is presented:
1.There is Sufficient Existing and Projected Need for Organized
Service.The Financing Plan projects a total of 2,500single/multi-familyunits and
amenities to be constructed within the area served by the Districts between 2022and 2034
for the initial district boundaries, representing a projected population ofapproximately
7,500persons (estimated at 3.0 person per residential unit). Accordingly, the demand for
the services and facilities to be provided by the Districts is demonstrable.
2.The Existing Service in the Area to be Served is Inadequate for
Present and Projected Needs/Adequate Service Through Other Governmental Entities Will
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Not Be Available Within a Reasonable Time and on a Comparable Basis. The facilities
and services to be provided by the Districts will not be provided by any county, municipal
or quasi-municipal corporations, including existing special districts. Neither the Citynor
any existing special district plans to provide the facilities required for the development of
the Project. Therefore, provision of facilities will not be available through other
institutions.
3.TheDistricts are Capable of Providing Economical and Sufficient
Service/The Districts Will Have the Financial Ability to Discharge Proposed Indebtedness
on a Reasonable Basis. The Districts are necessary in order to provide the most economical
and efficient means of ownership and operation of essential improvements to serve existing
and future residents within their respective boundaries. The Financing Plan attached as
ExhibitCdemonstrates the feasibility of providing the Public Improvements and services
proposed herein on an economical basis, and the ability to discharge the proposed
indebtedness on a reasonable basis. The formation of the Districts will facilitate the
financing of the proposed public improvements at least cost, as the Districts will have
access to tax-exempt financing that is not available to private entities.
4.The Creation of the Districts is in the Best Interests of the Area to be
Served/Multiple District Structure.The matters described in items 1 through 3 of this
Section 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 will otherwise be
unmet by other governmental entities and 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 improvements 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 Cityexpectations; and c) maintenance of a
reasonably uniform mill levy and fee structure through coordinated planning and financing
for construction of Public Improvements.
B.General Powers of Districts.
Each District will continue to have power and authority to provide the services and
facilities described in this Service Plan both within and outside their boundaries in
accordance with Colorado law. If after the Service Plan is approved, the State Legislature
includes additional powers or grants new or broader powers for Title 32 districts by
amendment of the Special District Act, to the extent permitted by law any and all such
powers shall be deemed to be a part hereof and available to be exercised by the District
upon execution of a written agreement with City Councilconcerning the exercise of such
powers in the sole discretion of the City Council. Execution and performance of such
agreement by the District shall not constitute a material modification of the Service Plan
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by the District. The powers and authorities of each District will be allocated and further
refined in a MasterIntergovernmental Agreement (“Master IGA”) between the Districts.
For purposes of the Act, theMasterIGA shall not constitutean amendment of this Service
Plan. It will constitute a binding agreement between the Districts regarding implementation
of the powers contained in this Service Plan. The following is a list of those general powers
and authorities authorized by the Act and this Service Plan:
1.Sanitation and Storm Drainage.The design, financing, acquisition,
installation construction and operation and maintenance of storm or sanitary sewers, or
both, sanitary sewer treatment and/or disposal facilities, flood and surface drainage
improvements including but not limited to, collection lines, culverts, dams, retaining walls
and appurtenances, and other natural or man-made drainage facilities, access ways inlets,
channels, disposal works and facilities, solid waste disposalfacilities or waste services,
systems, facilities and methods for collection and transportation of solid waste, detention
ponds and paving, roadside swales and curb and gutter, wastewater lift stations, force mains
and wetwell storage facilities, and all necessary or proper equipment and appurtenances
incident thereto, together with all necessary, incidental and appurtenant facilities, land and
easements, and all necessary extensions of and improvements to said facilities or systems
within and without the boundaries of the Districts, but not outside the boundaries of the
Citywithout the approval of the City.
2.Water. The design, financing, acquisition, installation and
construction of a complete water and irrigation water system, including but not limited to,
water rights, water supply, treatment, transmission and distribution systems for domestic
and other public or private purposes, together with all necessary and proper water rights,
equipment and appurtenances incident thereto which may include, but shall not be limited
to, transmission lines, distribution mains and laterals, hydrants, storage tanks and
reservoirs, storage facilities, wells, pumping facilities, and all necessary equipment and
improvements, together with all necessary, incidental and appurtenant facilities, land and
easements, and all necessary extensions of and improvements to said facilities and systems
within and without the boundaries of the Districts, but not outside the boundaries of the
Citywithout the approval of the City.
3.Non-Potable Water.The design, financing, acquisition, installation
and construction of an irrigation water system, including, but not limited to, water rights,
water supply, storage, transmission and distribution systems for public or private purposes,
together will all necessary and proper reservoirs, and facilities, wells, water rights,
equipment and appurtenances incident thereto which may include but shall not be limited
to, transmission lines, distribution mains and laterals, storage facilities, landand easements,
together with extensions of and improvements to said facilities and systems within and
without the boundaries of the Districts, but not outside the boundaries of the Citywithout
theapproval of the City.
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4.Streets.The design, financing, acquisition, installation, construction,
operation, and maintenance of arterial street, collector and local streets, and other roadway
improvements, including but not limited to curbs, gutters, culverts, storm sewers and other
drainage facilities and systems, including without limitation lines, channels, detention
ponds, retaining walls and appurtenances, and other natural or man-made drainage
facilities, as well as sidewalks, bridges, pedestrian underpasses and tunnels, parking
facilities, paving, lighting, grading, landscaping, entry features and facilities,
undergrounding of public utilities, snow removal equipment, or tunnels, snow storage, and
other street improvements, together with all necessary, incidental, and appurtenant
facilities, landand easements, extensions of and improvements to said facilities and
systems within and without the boundaries of the Districts, but not outside the boundaries
of the Citywithout the approval of the City.
5.Traffic and Safety Controls. The design, financing, acquisition,
installation, construction, operation, and maintenance of traffic and safety protection
facilities and services through traffic and safety controls and devices on arterial streets and
highways, environmental monitoring, and rodent and pest controls necessary for public
safety, as well as other facilities and improvements, including but not limited to, main
building entrances, access gates, guard shacks, street lighting and signage, signalization at
intersections, railroad crossings, street and pedestrian crossings, traffic signs, area
identification signs, directional assistance, and driver information signs, and security
systems and services, together with all necessary, incidental, and appurtenant facilities,
land easements, and all necessary extensions of and improvements to said facilities and
systems within and without the boundaries of the District, but not outside the boundaries
of the Citywithout the approval of the City.
6.Parks and Recreation.The design, financing, acquisition, installation,
construction and maintenance of public park and recreation facilities and/or provision of
passive, non-athletic recreational programs including, but not limited to, grading, soil
preparation, sprinkler systems, playgrounds, playfields, bike and hiking trails, pedestrian
and equestrian trails, pedestrian bridges, neighborhood parks, greenbelts, picnic areas,
swimming pool facilities, lakes, open spaces, common area landscaping and weed control,
outdoor lighting of all types, pedestrian underpasses and tunnels, urban plazas,golf
courses, club houses and community event centersand other recreation facilities, together
with all necessary, incidental and appurtenant facilities, land and easements, and all
necessary extensions of and improvements to said facilities or systems within and without
the boundaries of the District, but not outside the boundaries of the Citywithout the
approval of the City.
7.Mosquito and Pest Control. The design, financing, acquisition,
installation, construction, operation, and maintenance of systems and methods for the
elimination and control of mosquitoes, rodents and other pests.
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8.Security Services.Subject to compliance with the provisions of §32-
1-1004(7), C.R.S., the design,financing,acquisition, installation, construction, operation
and maintenance of security services including, but not limited to, perimeter and interior
scheduled security patrols, construction of safety barriers or similar protective measures,
establishment of rules of conduct for residents and visitors, acquisition of security
equipment, protection of the Districts' property from unlawful damage or destruction,
together with any and all other security measures which may be necessary or appropriate
to the orderly conduct of the affairs of the Districts and for the protection of the health,
safety, and welfare of the Districts' residents, taxpayers, officers, and employees, inclusive
of the general public in connection therewith.Such security services are not intended to
replace law enforcement provided by the Cityand/or County, rather these security services
are intended to supplement and provide additional safety and protection of the Districts’
residents, property and facilities.
9.CovenantEnforcement and Design Review.Subject to compliance
with the provisions of §32-1-1004(8), C.R.S., the ability to prepare, implement and enforce
design and development guidelines, rules and regulations, or similar protective controls
regarding all construction activities within the Districts' boundaries, including but not
limited to, architectural standards forthe design, construction, erection, placement or
installation of new structures or modification of existing structures within the Districts'
boundaries.
10.Fire Protection and Emergency Services. The financing, design,
acquisition, installation and construction of fire protection and emergency facilities
including, but not limited to, fire stations, fire hydrants, as well as other necessary
apparatuses, associated equipment, related facilities and improvements, together with all
necessary, incidental, and appurtenant facilities, land easements, extensions of, and
improvements to said facilities.
11.Legal Powers.The powers of the Districts willbe exercised by their
Boards of Directors to the extent necessary to provide the services contemplated in this
Service Plan. The foregoing improvements and services, along with all other activities
permitted by law, will be undertaken in accordance with, and pursuant to, the procedures
and conditions contained in the Special District Act (§32-1-201, et seq., C.R.S.), other
applicable statutes, and this Service Plan, as any or all of the same may be amended from
time to time.
12.Other. In addition to the powers enumerated above, the Boards of
Directors of the Districts shall also continue to have the following authority:
a.Plan Modifications.To amend this Service Plan as needed,
subject to the appropriate statutory procedures provided that any material modification of
this Service Plan shall be made only with the approval of the City Councilin accordance
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DN 6134244.1
with § 32-1-207, C.R.S., and after obtaining a resolution of approval from the City Council;
and
b.To forego, reschedule, or restructure the financing, including
the security therefore, and/or the operation and maintenance of improvements and facilities
in order to better accommodate the pace of growth, resource availability, and financial
interests of property of the Districts; and
c.Phasing, Deferral. Without modifying this Service Plan, to
defer, forego, reschedule, or restructure the financing and construction of certain
improvements andfacilities, to better accommodate the pace of growth, resource
availability, and potential inclusions of property within the Coordinating District.
d.Additional Services. Except as specifically provided herein, to
provide such additional services and exercise such powers as are expressly or impliedly
granted to special districts by Colorado law, including but not limited to those powers
delineated in Section 32-1-1004, C.R.S., as the same may be amended from time to time.
e.Subdistricts. With the priorconsent of City Council,the
Coordinating Districtshall have the authority pursuant to Section 32-1-1101(1)(f)(I),
C.R.S. and Section 32-1-1101(1.5)(a) through (1.5)(e), C.R.S., to divide the Coordinating
Districtinto one or more areas consistent with the services, programs and facilities to be
furnished therein.
f.Special Improvement Districts. With the prior consent of City
Council, the Coordinating Districtshall be authorized to establish special improvement
districts within the Service Area as provided in Section 32-1-1101(1)(g), C.R.S.
g.Enterprises. The Coordinating District’s Board may set up
enterprises to manage, fund, and operate such facilities, services, and programs as may
qualify for enterprise status using the procedures and criteria provided in Article X, Section
20, Colorado State Constitution. To the extent provided by law, any enterprise established
by the Coordinating District’s Board will remain under the control of the Coordinating
District’s Board.
h.To exercise all necessary and implied powers under Title 32,
C.R.S. in the reasonable discretion of the Boards of Directors of the Districts, except as
limited hereby and pursuant to the Intergovernmental Agreement to be executed between
the Districts and the City, attached as Exhibit F.
III.DESCRIPTION OF FACILITIES AND IMPROVEMENTS
The Coordinating District and Financing Districts are permitted to exercise their
statutory powers and their respective authority set forth herein to finance, construct,
acquire, operate and maintain the public facilities and improvements described in Section
II of this Service Plan, either directly or by contract. Where appropriate, the Districts may
contract with various public and/or private entities to undertake such functions.
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DN 6134244.1
The diagrams contained in the Exhibits to this Service Plan show the conceptual
layouts of the public facilities and improvements described in this Section III. Additional
information for each type of improvement needed for the Project is set forth in the
following pages. It is important to note that the preliminary layouts contained in the
exhibits are conceptual in nature only, and that modifications to the type, configuration,
and location of improvements will be necessary as development proceeds. The following
sections contain general descriptions of the contemplated facilities and improvements that
will be financed by the Financing Districts. The general descriptions of improvements set
forth in this Service Plan, as well as the cost estimates provided,are preliminary and will
be subject to modification and revision by the Districts without the need for an amendment
to this Service Plan, as necessary or appropriate based on development plans or approvals,
engineering, financial factors, Cityrequirements and construction scheduling.
Improvements not specifically described herein shall be permitted as long as they are
generally identified in this Service Plan and/or expressly or impliedly granted byColorado
law.As shown in Exhibit D, the estimated, uninflatedcost of the publicimprovements
which may be planned for, designed, acquired, constructed, installed, relocated,
redeveloped, maintained or financed by the Districts is approximately $98,017,917 for the
initial 562 acres, inclusive of engineering and construction contingencies, but exclusive of
other soft costs and all costs of issuance, including but not limited to bond issuance
expenses, debt service reserves, capitalizedinterest, underwriter’s discount, legal fees, as
well as organizational costs. Notwithstanding the cost estimate allocations among
particular categories of improvements, the Districts shall be permitted to reallocate costs
among such categories of improvements as necessary to best serve the Project.
As shown in the Preliminary Infrastructure Plan for District Nos. 1-3attached hereto
asExhibit Dand incorporated herein by reference, the estimated cost of thePublic
Improvements which may be planned for, designed, acquired, constructed, installed,
relocated, redeveloped, maintained or financed by the Districtsisapproximately
$98,017,917 in the aggregate for all of District Nos. 1-3estimated public improvements
and amenities projectedfor the initial 562 acres of property withinExhibit D.
A.General.
Construction of all planned facilities and improvements will be scheduled to allow
for proper sizing and phasing to keep pace with the need for service. All descriptions of
the specific facilities and improvements to be constructed, and their related costs, are
estimates only and are subject to modification as engineering, development plans,
economics, the City's requirements, and construction scheduling may require.
B.General Design Standards/Dedication/Operations.
It is planned that all PublicImprovements that will not be owned, operated, and
maintained by the Districts shall be dedicated to either the Cityor other governmental
entities for ownership, operations and maintenance. Those Public Improvements which
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DN 6134244.1
will be dedicated to the Citywill be designed and constructed in accordance with standards
adopted by the City. Any Public Improvements that are to be dedicated to other
governmental entities will be designed and constructed inaccordance with the standards of
such entities, provided that any wastewater treatment facilities constructed by the Districts
may only be dedicated to the Cityfor operations and maintenance. The Districts shall be
authorized to operate and maintain Public Improvements until such time as they are
dedicated to the Cityor other governmental entity. Any Public Improvements not accepted
by the Cityor other appropriate governmental entity for ongoing ownership, operations
and/or maintenance, shall be owned, operated and/or maintained by the Districts. The
timing for conveyance of Public Improvements to the Citywill be determinedby mutual
agreement between the Coordinating District and the City.
C.Wastewater System.
All major elements of the sanitary sewer improvements required for the Project are
expected to be designed, and installed by the Coordinating District.
D.Storm Drainage.
1.Generally. The CoordinatingDistrict is expected to install the
necessary storm drainage system to serve the property within the Districts. The proposed
elements of the storm drainage system will provide a network of culverts, roadside swales,
pipes,detention and water quality ponds, inlet and outlet structures, and curbs and gutters
designed and installed in accordance with applicable Citystandards and sound engineering
judgment.
2.Culverts. Culverts will be installed as appropriate. Culverts will be
designed and constructed topass flows as required by Citystandards, and may include
headwalls, wing walls, inlet and outlet structures, and riprap protection to enhance their
hydraulic capacity and reduce bank or channel erosion.
E.Water System.
1.Overall Plan. The water system is planned to consist of potable and
irrigation water distribution systems consisting of buried water mains, fire hydrants, and
related appurtenances located predominately within the Districts’ boundaries. The final
configuration of the water systems isyet to be designed. When design and construction are
finalized, the system will serve each development tract from adjacent streets and roads. All
major elements of the water facilities are expected to be designed and installed by the
Coordinating District.
2.Design Criteria. The proposed domestic potable water distribution
system and the irrigation water system are expected to include pressurized water mains
with multiple pressure zones. Water system components will be designed and installed in
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DN 6134244.1
accordance with Citystandardsand the applicable standards of the Coordinating District.
The water system will also be designed based on applicable fire protection requirements.
Certain water facilities may, pursuant to an agreement between the Districts,be dedicated
to the City asappropriate and in accordance with approved development plans; those
facilities so dedicated shall be designed and installed in accordance with the applicable
standards of the City.Certain water facilities may, pursuant to an agreement with the City
be dedicated to the City.
F.Street System and Traffic Safety.
1.General. Anticipated improvements includebut are not limited to,
design, construction and/or acquisition of an entire public street system and associated
street furnishings, landscaping and amenities within the Districts. Pedestrian-oriented
streets,such as those planned for portions of the Districts,contain a high concentration of
public amenities (lighting, furnishings, special paving and curb treatments, enhanced
landscaping, public art, etc.). Street improvements will be constructed in dedicated public
rights-of-wayor on land owned in fee by the City. Typical elements may include:
a.Grading;
b.Street, curb, sidewalk and storm inlet construction;
c.Street trees, tree grates, tree lawns, hedges, other forms of
landscaping and irrigation systems;
d.Street and pedestrian lighting and electrical service to serve
this lighting;
e.Street furnishings such as benches, bike racks, trash
receptacles, poles, signage and newspaper vending machine corrals; and
f.Railroad crossings and safety signs/signalization, pedestrian
crossings, traffic signs, area identification signs, directional assistance, and driver
information signs.
G.Signals and Signage.
Anticipated improvements include new traffic signals and controls associated with
the new public streets within the Project. New traffic signals and associated electrical
connections are anticipated along the major roadways within the Project. Traffic signage
and controls (stop, yield, directional signage, etc.) will also be required along newly
constructed public streets and at intersections throughout the site.
H.Parks and Recreation/Landscaping.
Landscaping may be installed along the roadway rights-of-way and trail easements.
The Coordinating District expects to install and maintain landscaped highlights along the
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DN 6134244.1
internal streets and entry features at major entrances. Additional features may be installed
and maintained by the developers of the individual parcels.All District open space tracts,
trails, and park improvements shall be open and available to the general public and City
citizens free of charge. CityTrails and Regional Trailswhich are interconnected with a
Cityor regional trail system shall be open to the public free of charge and on the same basis
as residents and owners of taxable property within the Districts. The Districts will
coordinate with the Cityregarding the operation and maintenance of the Cityand regional
trails and assist with the financing, construction, installation and operation and
maintenance of the trails benefiting the Districts, their constituents and guests.
I.Mosquito and Pest Control.
The Districts shall be permitted to construct, acquire, install and otherwise provide
various systems and equipment, as well as employ appropriate methods for the elimination
and control of mosquitoes, rodents and other pests.To the extent practicable, the Districts
shall work cooperatively with the Cityto ensure such efforts at mosquito and pest control
are not duplicated by the Cityand the Districts.
J.Fire Protection.
The Districts expect to finance, construct, acquire and install fire protection facilities
and equipment, including temporary and/or permanent fire stations and related structures,
engine trucks, ladder trucks, and any and all other necessary apparatuses, associated
equipment, materials, and facilities necessary for such facilities and equipment. Fire
protection facilities and equipment shall conform to the standards of the City of Pueblo and
any applicable Fire Protection District, to which such facilities and equipment are expected
to be dedicated for ownership, operations and maintenance.
K.Estimated Cost of Facilities.
The estimated cost of the facilities to be constructed, installed and/or acquired by
the Coordinating District are shown in Exhibit E attached hereto.
IV.DEVELOPMENT PROJECTIONS
Land use within theProject will be residential and commercial, and projection of
the number and type of residential units, as well as projections of commercial development,
are included within the Financing Plan.
V.PROPOSED AGREEMENTS
A.Master Intergovernmental Agreement.
As noted in this Service Plan, the relationship between the Coordinating District and
the Financing Districts, including the means for approving, financing, constructing, and
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DN 6134244.1
operating the public services and improvements needed to serve the Project isestablished
bytheMaster IGA. The Master IGA generally providesthat the Financing Districts will
pay to the Coordinating District over a period of years the costs of: (1) the construction,
acquisition, and equipping of certain public facilities and services (including the cost of
financing);and (2) the operation and maintenance of the facilities. The obligation to pay
the amounts required under the Master IGAis a contractual general obligation debt of the
Financing Districts subject to certain limitations.
Under the Master IGA, the Financing Districts havecovenantedto levy the taxes
necessary, together with other available funds, to meet the payment obligations set forth in
theMaster IGA. In return for the payment under the Master IGA, the Coordinating District
agreesto: (1) acquire, construct and equip the facilities;(2) provide for their operation and
maintenance;and (3) provide service to the property within the Districts or convey facilities
to other appropriate entities that will provide service. The total obligation of the Financing
Districts represented by the Master IGA islimited to the costs of construction and
operations and maintenance as set forth in this Service Plan.
B.Other Agreements/Authority.
To the extent practicable, the Districts 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 pursuant to
Colorado Constitution, Article XIV, §18(2)(a) and §29-1-201,et seq., C.R.S.
VI.OPERATION AND MAINTENANCE COSTS
Estimated costs for operation and maintenance functions are presented within the
Financing Plan attached as ExhibitCattached hereto. Additionally, the Districtsshall
have the power impose a system of rates, fees, tolls, penalties and charges for facilities and
services provided, in accordance with Colorado law. The estimated revenues from such
fees and charges are reflected in the Financing Plan discussed in the following section.
VII.FINANCING PLAN
A.Financing of Proposed Facilities and Services.
Initial estimates of anticipated costs of capital facilities, general administration,and
operations of the Districts are set forth in the Financing Plan and are anticipated to be
funded by the Coordinating District and/or the Financing Districts from a combination of
property taxes and non-tax revenues as described below. The Districts may authorize, issue,
sell, and deliver such bonds, notes, contracts, reimbursement agreements, or other
obligations evidencing or securing a borrowing (collectively, “Obligations”) as are
permitted by law. Obligations may be payable from any and all legallyavailable revenues
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DN 6134244.1
of the Districts in any form or combination of forms that may be permitted by applicable
law.
All or any portion of the proceeds of the Obligations issued may be used to fund
such previously incurred expenses for Public Improvements via reimbursement to and/or
acquisition from the entity advancing the costs for such improvements. Further, it is
expected that the costs advanced for the organization and initial operations of the Districts
will be similarly reimbursable to the entity advancing such costs. The Districts may also
issue the Obligations directly to the organizers or other private party advancing funds or
furnishing facilities on behalf of the Districts from time to time, to reimburse funds
advanced and/or acquire facilities soconstructed.
Notwithstanding the foregoing, the Districts shall not issue bonds to fund or make
any payment to the organizers of the Districts, their affiliates, or to any other private party
or entity advancing funds or furnishing public facilities whichare to be dedicated to or
used by the Districts or the Cityand their respective residents, to the extent the cost of any
such public facility is paid or reimbursed to such entity or person pursuant to those certain
Annexation and Development Agreements among the City of PuebloandLorson, LLC.
This limitation shall apply only to the expense being reimbursed pursuant to the
Annexation and Development Agreements and shall not prevent the reimbursement to any
person or entity, including, without limitation,the organizers of the Districts and their
affiliates, for the purpose of reimbursing any other advance of funds or the furnishing of
any public facilities. Other than with respect to the mill levy cap and Debt Limits (defined
below), the Districts shall be permitted to modify the nature, amount, timing, structure,
security enhancements, or type of financing used from that shown in the Financing Plan to
respond to current needs and circumstances, such modifications not being considered a
material modification of this Service Plan, as it applies to any individual District, or
collectively to all the Districts.
The Financing Plan attached as Exhibit Csets forth certain assumptions, and
estimated revenues, expenses, and debt service requirements with respect to each District.
The Financing Plan contains one illustration of a financing structure by which the Public
Improvements would be financed, including the estimated costs of engineering services,
legal services, administrative services, proposed bond issuances, estimated maximum
proposed interest rates and discounts, land or facilities to be acquired, and other major
expenses relating to the organization and operation of the Districts.The Financing Plan is
not intended to establish an additional limitation, but rather is one example of a financing
that could be pursued. The amount of Debt issued, the mill levy pledged, the date of
issuance, the term of the bonds and other information in the Financing Plan is intended to
show one example of the Districts’ ability to issue and repay Debt. The actual Debt issued
by the Districts will most certainly differ from what is shown in the Financing Plan.
Notwithstanding anything else herein to the contrary, all issuance of Debt shall be deemed
to be in compliance with the Financing Plan and the Service Plan so long as the minimum
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DN 6134244.1
criteria and limitations set forth herein have been met.The Financing Plan assumes no
revenues from Conservation Trust Funds or Great Outdoor Colorado funds, and the
Districts shall request such funds only if separately approved by the City. The funds and
assets of the Cityshall not be pledged as security for the repayment of any Obligations
issued by the Districts.
1.Debt. As used in this Consolidated Service Plan, the term “Debt”
means the principal amount of any Obligation (other than those Obligations of the
Financing Districts owed to the Coordinating District pursuant to the terms of the Master
IGA described in paragraph 2 below) payable in whole or in part from ad valoremproperty
taxes and/or rates and charges as described in paragraph 4 below to be imposed by any of
the Districts. Debt may be issued in an amount approved by the Boards of Directors of the
Districts for Public Improvementsandservices eligible for fundingin accordance with
applicable law, subject to the limitations set forth herein. Debt does not include contracts
or agreements of the Districts entered into in the ordinary course of business (e.g.
consultant, engineering, and construction contracts for public improvements).
In order to respond to future contingencies and increases in costs, the Debt issuance
limit for the District Nos. 1-3shall be $63,200,000in the aggregate for all Districts
combined (the “Combined Debt Limit”) (the “Debt Limits”)which represents 150% of the
current financial proforma provided by Piper Sandler based upon 2,500 unit build out of
the initial district boundaries. The additional future inclusion acreage may include more
than 800 additional single-familyunits and related infrastructure and improvements needed
for that area. The additional contingency requested is intended to provide flexibility for
the future inclusion area and contingencies in construction and development for the Villa
Bella Project, provided that such limitations shall not be applicable to refunding Bonds
issued by the Districts to refund outstanding Debtor intergovernmental agreements
between the Districts. The issuance of Debt in excess of the proposedDebt Limit may only
be exceed by the District issuing the Debt by obtaining approval of an amendment to this
Service Plan.
In this fashion, the Districts will have reasonable flexibility to adjust the actual
amount of Debt to be issued, to respond to changing development dynamics, economic
conditions within the Districts, the potential for District boundary adjustments as described
previously, and changing capital costs. The Districts also shall be permitted to seek debt
authorization from their electorates in excess of these amounts to accountfor
contingencies, but may not issue debt beyond the Debt Limits prescribed without approval
through an amendment to this Service Plan.
The obligations of the Financing Districts to the Coordinating Districtas set forth
in the Master IGA concerning the funding of the PublicImprovements shall not count
against the Debt Limits; provided, however, that any Obligations issued by the
Coordinating District which are secured by such obligations of the Financing Districts shall
count against the Debt Limits. Debt that has been paid or refunded does not count against
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DN 6134244.1
the Debt Limit, nor shall increases necessary to accomplish a refunding, reissuance or
restructuring of Debt. The Districts may authorize, issue, sell, and deliver such Obligations
as are permitted by law, provided that the following limitations shall apply to Debt payable
in whole or in part from ad valorem property taxes, except where waived by the Cityor as
is otherwise provided herein:
a.The Districts may assess a mill levy on all taxable property in
the Districts’ Boundaries as a source of revenue for repayment of debt service and for
operations.
Each of the Financing Districts shall only be required to fund on an
annual basis, the amount that the applicable Financing District would be capableof funding
through tax revenues resulting from the imposition of the Debt Mill Levy Cap (defined
herein). The maximum mill levy the Districts may impose for the payment of principal
and interest on Debt shall be sixty (60) mills (the “Debt Mill Levy Cap”); provided that if,
on or after January 1, 2019 there are changes in the method of calculating assessed
valuation or any constitutionally mandated tax credit, cut or abatement; the mill levy
limitation applicable to such Debt may be increased or decreasedto reflect such changes,
such changes or decreases to be determined by the Districts’ Boards in good faith so that
to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for
changes occurring after January 1, 2019, are neither diminished or 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. Except as
otherwise provided in this subparagraph a, the Debt Mill Levy Cap shall not be increased
unless approved by the City Council and as permitted by statute. Any such increase shall
be considered a material modification of the Service Plan.
The Districts may impose a mill levy to defray operations,
maintenance, and administrative expenses of each District, as deemed necessary to pay for
such expenditures. The Districts shall not impose or attempt to impose a mill levy, or fees
in lieu of a mill levy, on any of the property conveyed or dedicated to the Cityof Pueblo
as provided in this Service Plan.
b.The issuance of Debt to the organizers of the Districts or their
affiliates may permit interest to accrue on the total unpaid amount, such interest to be paid
according to such terms as may then be established, but without compounding. An
individual District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levyfor repayment of Debt) to the organizers of the Districts or their
affiliates, on any single property developed for residential uses which exceeds forty (40)
years after the year of the initial imposition of such debt service mill levyunless there is a
refunding of a part or all of the Debt and such refunding will result in a net present value
savings as set forth in Section 11-56-101, C.R.S., et seq.. Notwithstanding any other
provision hereof, such Debt referred to in the preceding sentencesshall be deemed to be
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DN 6134244.1
discharged at such time as the debt service mill levy is suspended at the end oftheforty
(40)year period.
2.Master IGA Obligations. The obligations of the Financing Districts
under the Master IGAto pay the Coordinating District for capital and general operating
expenses of the Districts shall constitute “contractual debt”of the Financing Districts, but
shall not count against the Debt Limits. Accordingly, mill levies certified to make
necessary payments to the Coordinating District may be characterized as debt service or
operations and maintenancemill levies notwithstanding that they are imposed in part to
pay contractual obligations for debt service and operations and maintenance services
provided by the Coordinating District. Any such mill levy certified under the Master IGA
shall be subject to the mill levy maximums established in Section VII.A.1.a, and Section
VII.A.7.
3.General. The Districts shall be authorized to provide for the planning,
design, acquisition, construction, installation, relocation, financing, ownership, operation
and maintenance and/or redevelopment of the Public Improvements from their revenues
and by and through the proceeds of Debt to be issued by the Districts. The Financial Plan
for the Districts shall be to issue such Debt as the Districts can reasonably pay within the
revenues derived from the maximum debt mill levies as provided above,fees,and other
legally available revenues. The total Debt that the Districts shall be permitted to issue shall
not exceed Sixty-Three Million,TwoHundred ThousandDollars ($63,200,000) in the
aggregateand shall be permitted to be issued on a schedule 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. A pro forma Financial Plan is attached hereto
asExhibit C. The attached Financial Plan is one illustration of how the Public
Improvements 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. All bonds and other Debt issued by the Districts may be payable
from any and all legally available revenues of the Districts, including general ad valorem
taxes and fees to be imposed upon all taxable propertywithin the Districts. The Districts
mayalso rely upon various other revenue sources authorized by law. These will include
the power to assess fees, rates, tolls, penalties, or charges as provided in Section 32-1-
1001(1), C.R.S., as amended from time totime.Any fees or charges imposed by the
Districts shall be assessed in accordance with law, will be used for specifiedpurposes,and
be rationally related to a legitimate public purpose.
Prior to the issuance of long-term bonds, the Districts may issue bond
anticipation notes or other multiple-fiscal year financial obligations secured by the
revenues generated from property taxes, capital facilities fees, district fees, and any other
District revenues collected by the Districts. Credit enhancement may be provided for any
obligation of the Districts, if necessary. The Districts may make multiple-fiscal year
financial obligation pledges secured by property taxes, specific ownership taxes and the
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DN 6134244.1
system development fee revenue to fund the acquisition and installation of the Public
Improvements for the Project. Revenue from property taxes, specific ownership taxes and
system development fees and from other available sources will be used to retire bonds,
other debt or multiple-fiscal year financial obligations.
4.Risk Disclosure. The ability of the Districts to meet the projections
upon which the Financial Plan is premised is subject to various risks and uncertainties,
including but not necessarily limited to, actual development that occurs within the
Districts’ boundaries and the sale of lots, sale of commercial space, construction of homes
as might occur within the area, and actual market valuation of property within the Districts’
boundaries. Development in the Districts will be impacted by many factors including
governmental policies regarding land development, the availability of utilities,
construction costs, interest rates, competition from other developments and other political,
legal and economic conditions.
5.Enterprises. The Districts may exercise any of its powers through
enterprises established in accordance with Article X, §20 of the Colorado Constitution
(TABOR).
6.Rates and Charges. The Districts shall have the power to derive
revenue from and pledge any other legally-available revenue source, including but not
limited to those derived from fees, rates, tolls, penalties or charges as provided by § 32-1-
1001(1), C.R.S., or otherwise as may be permitted by law. The Financing Plan therefore
assumes revenues from various sources in addition to property taxes, and may include in
the future such other revenues as the Districts may legally generate.
7.Maximum Interest Rate and Underwriting Discount. The interest rate
on any Obligations is expected to be the market rate at the time the Obligations are issued.
The proposed maximum interest rate shall not exceed 12%. The proposed maximum
underwriting discount shall not exceed 5%.
8.Obligations Issued to District Organizers/Affiliates. Prior to the
issuance of any Obligations to the organizers of the District or their affiliates, the District
issuing the Obligation shall obtain the certification of an External Financial Advisor (as
defined below) substantially as follows:
We are \[I am\] an External Financial Advisor within the meaning of
the District’s Service Plan.
We \[I\] certify that (1) the net effective interest rate (calculated as
defined in Section 32-1-103(12), C.R.S.) to be borne by \[insert the
designation of the Debt\] does not exceed a reasonable current \[tax
exempt\]\[taxable\] interest rate, using criteria deemed appropriate by us
\[me\] and based upon our \[my\] analysis of comparable high yield
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22
DN 6134244.1
securities; and (2) the structure of \[insert designation of the Debt\],
including maturities and early redemption provisions, is reasonable
considering the financial circumstances of the District.
The term “External Financial Advisor” means a consultant that: (i) advises
Colorado governmental entities on matters relating to the issuance of securities by
Colorado governmental entities, including matters such as the pricing, sales and marketing
of such securities and the procuring of bond ratings, credit enhancement and insurance in
respect of such securities; (ii) shall be an underwriter, investment banker, or individual
listed as a public finance advisor in the Bond Buyer’s Municipal Market Place; and (iii) is
not an officer or employee of the District and has not been otherwise engaged to provide
services in connection with the transaction related to the applicable Obligation.
9.District Revenue 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 may also rely
upon various other revenue sources authorized by law. At the Districts’ discretion, these
may include the statutorily defined power to assess fees, rates, tolls, penalties, or charges
that are reasonably related to the services and facilities being provided in accordance with
Section 32-1-1001(1), C.R.S., as amended from time to time.
The Districts may also assess fees, rates, tolls, penalties, or charges that are
reasonably related to the District amenities, public improvements owned, operated and
maintained by the Districts, and other facilities and services being provided in accordance
with Section 32-1-1001(1), C.R.S., as amended from time to time. Additionally, the
Districts shall be entitled to impose administrative feesas necessary to cover additional
expenses associated with use of District recreational improvements, other than parks and
trails, by Cityresidents who do not reside in the Districts taking into account the District
residents taxes and fees paid to construct the facilities and improvements to ensure that
such costs are not the responsibility of District residents. All such Fees shall be based upon
the District’s determination that such Fees do not exceed a reasonable annual market fee
for users of such facilities.No Fees related to the funding of costs of a capitalnature shall
be authorized to be imposed upon or collected from taxable property owned or occupied
by an End User(defined as a resident, homeowner, renter, commercial property owner, or
commercial tenant, but excluding the business entity that constructs homes or commercial
structures)which has the effect, intentional or otherwise, of creating a capital cost payment
obligation in any year on any taxable property owned or occupied by an End User.
10.Security for Debt. The Districts shall not pledge any revenue or
property of the Cityas security for the indebtedness set forth in this Service Plan. Approval
of this Service Plan shall not be construed as a guarantee by the Cityof payment of any of
the Districts’ obligations; nor shall anythingin the Service Plan be construed so as to create
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DN 6134244.1
any responsibility or liability on the part of the Cityin the event of default by the Districts
in the payment of any such obligation.
The Financing Plan demonstrates that the Districts will have the financial
capability to discharge the proposed indebtedness with reasonable mill levies assuming
reasonable increases in assessed valuation and assuming the rate of build-out estimated
therein.
VIII.OTHER REQUIREMENTS/MISCELLANEOUS
A.Other Requirements.
The Districtsshall continue to be subject to the following additional requirements:
1.Submission of annual reports as described in §32-1-207(3), C.R.S.,
not later than March 1 of each year following the year of organization, containing the
following information, at a minimum:
a.Boundary changes made;
b.Intergovernmental Agreements executed;
c.Proposed capital construction projects for current year;
d.Proposed public improvement dedications for current year;
e.Projected Debt issuance for current fiscal year;and
f.Material litigation to which a District is a party.
2.The Districts shall furnish the Citywith a copy of its annual audit at
the same time as the audit is filed with the Division of Local Government.
3.The Districts shall furnish the Citywith a copy of the Districts’ mill
levy certification at the time such certification is provided to the County.
4.Material modifications of this Service Plan shall be subject to
approval by the Cityin accordance with the provisions of §32-1-207, C.R.S.and as
provided herein.
5.Disclosure to Purchasers. The Developer and the Districts will
provide written notice to initial purchasers of property located within the Districts at the
time of closingthat disclosesthe existence of the Districts and of any additional taxes,
charges, and/or assessments that may be currently in effect and imposed in connection with
the Districts. The written notice shall also provide information concerning the maximum
debt milllevy, as well as a general description of the Districts’ authority to impose and
collect rates, fees, tolls and charges.
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DN 6134244.1
B.Miscellaneous.
The Districts shall be empowered to undertake all activities authorized by this
Service Plan, including all powers necessary or implied therefrom, in accordance with the
Special District Act (§32-1-201, et seq., C.R.S.). The grant of authority contained in this
Service Plan does not constitute the agreement or binding commitment of the Districts
enforceable by third parties to undertake the activities described, or to undertake such
activities exactly as described.
1.Standards of Construction/Statement of Compliance. Any facilities, which
theCoordinating Districtmay construct pursuant to this Service Plan, if constructed, shall
be constructed in accordance with the following provisions:
a.The sanitary sewer treatment and/or collection facilities will be
designed, constructed and maintained in accordance with the standards of the Colorado
Department of Health, the City of Pueblo and/or anyother applicable local, state or federal
rules and regulations.
b.TheCoordinating District’s water system will be constructed
and maintained in accordance with the standards of theBoard of Water Works of the City
ofPueblo, Colorado, the Colorado Department of Health or other jurisdictions, as
appropriate.
c.All streets and safety protection facilities to be dedicated to the
City of Pueblo will be constructed in accordance with the standards and specifications of
the City ofPueblo.
d.All storm sewers and facilities will be constructed in
accordance with the standards and specifications of the City of Pueblo and other local
jurisdictions, as appropriate.
e.All parks and recreational facilities and/or services will be
constructed in accordance with engineering and design requirements appropriate for the
surrounding terrain, and shall be in compliance with standards of the City of Pueblo or
other local public entities, as appropriate.
f.Alltransportation facilities and/or services will be provided in
accordance with the standards and specifications of the City of Pueblo, if any, or other local
public entities, as appropriate.
g.All mosquito control activities and/or programs will be
providedin accordance with the standards and specifications of the Colorado Department
of Health, the City of Pueblo and other applicable local, state and federal regulations.
h.All fire protection facilities and services will be designed,
constructed and maintained in accordance with the standards of the City of Pueblo, the Fire
Department and any other applicable local, state or federal rules and regulations.
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DN 6134244.1
i.TheCoordinating Districtwill insure that any facilities which
theCoordinating Districtmay construct pursuant to this Service Plan are designed and
constructed in accordance with the standards and specifications of the City of Pueblo and
of other governmental entities having proper jurisdiction. The Coordinating Districtwill
obtain the Cityof Pueblo’sapproval of civil engineering plans and will obtain applicable
permits for construction and installation of all such facilities prior to performing all such
work.
j.TheCoordinating Districtwill require its engineers to
implement a plan to assure that the standards by which the facilities are to be constructed
are in accordance with the specifications of the City of Pueblo and any other party which
will have jurisdiction over the design and/or construction of such facilities.
k.The City of Pueblo is not and never shall be obligated to pay
any of the debt obligations of the Coordinating District. The faith and credit of the City of
Pueblo will not be pledged for the repayment of any debt or other financial obligation of
any Districts. This will be clearly stated on all offering circulars, prospectuses, or
disclosure statements associated with any securities issued by any District. The District
shall not utilize the “City of Pueblo’’ name in the name of the District. In the text of each
Bond and any other instrument representing and constituting the debt or other multi-fiscal
year obligation of any of the Districts, there shall be set forth a statement in substantially
the following form:
By acceptance of this instrument, the owner of this Bond \[or
other debt obligations\] agrees and consents to all of the
limitations in respect of the payment of the principal of and
interest on this Bond \[or other debt obligations\] contained
herein, in the resolution of the District authorizing the issuance
of this Bond \[or other debt obligations\] and in the Service Plan
for the District.
Similar language describing the limitations in respect of the payment of the principal
of and interest on debt set forth in this Service Plan shall be included in any document used
for the offering of the debt for sale to persons including, but not limited to, a developer of
property within the boundaries of the District.
C.Intergovernmental Agreement.
The form of Intergovernmental Agreement (the “IGA”) to be entered into between
the Districts and the Cityfollowing formation of the Districts is attached as Exhibit F.
Modifications to the IGA subsequently agreed upon by the Cityshall not require a Service
Plan Amendment.
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DN 6134244.1
IX.DISSOLUTION/CONSOLIDATION
At the request of Pueblo or if the Board of Directors of the Coordinating District
deems it to be in the best interests of the Coordinating Districtthat the Coordinating District
be dissolved, the Coordinating Districtshall initiate and diligently pursuedissolution in
accordance with Section 32-1-701, et seq., C.R.S., at such time as: (1) Pueblo agrees to
provide or cause to be provided substantially the same level of operations and maintenance
(if any) of the Coordinating District’s facilities as the Coordinating Districthas provided,
(2) all of the proposed improvements and facilities have been constructed and conveyed to
Pueblo or other appropriate entity, and (3) all debt incurred for such facilities has been
repaid or arrangement for repayment has been made. The City Council may consent to the
dissolution by resolution.
The District shall not file a request with any court to consolidate with another Title
32 district without the prior written consent of the City Council.
X.PROPOSED AGREEMENTS
A.Coordinated Services of Districts.
As discussed in this Service Plan, the relationship between the Coordinating District
and the Financing Districts will be established through the proposed Master IGA. The
Master IGA specifies the rights and responsibilities of the Coordinating District to finance,
own, acquire, operate, construct and maintain the Improvements needed to serve the
Development in conjunction with financing provided by the Financing Districts; provided,
however, a Financing District may determine to finance, own, operate, construct and
maintain the Improvements to serve the development within such Financing District
pursuant to the terms set forth in the Master IGA. The Master establishes procedures and
standards for the approval of the design, operation and maintenance of the Improvements
and may provide the procedures for coordinated financing, budgeting, and administrative
oversight and management. The Master IGA will not be amended or its terms otherwise
modified in material ways without the consent of the City Attorney, the Director of the
Planning & Community Development, and the Director of Finance, and any such
modification may, at the election of the City Council, be deemed a material modification
of the Service Plan of any or all of the Districts.
B.Additional Intergovernmental Agreements and Agreements with
Private Entities.
To the extent practicable, the Districts may enter into additional intergovernmental
and private agreements to better ensure long-term provision and effective management of
the public improvements and services. Agreements may also be executed with property
ownersassociations and other service providers. Any additional intergovernmental
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27
DN 6134244.1
agreements are authorized pursuant to Colorado Constitution, Article XIV, § 18 (2)(a) and
Section 29-1-201,et seq., C.R.S.s
XI.VOTER AUTHORIZATION
To the extent necessary to comply with statutory and/or Constitutional requirements
for approval of debt or long-term financial obligations, the terms of the aforementioned
intergovernmental agreements and any other intergovernmental agreement deemed
necessary to effectuate the long-term plans of the Coordinating District will be submitted
tothe electors of the Coordinating District for approval. The Coordinating District shall
have the authority to obtain the required voter authorization in order to exercise its rights
and obligations under such agreements and to enter into the agreements without further
approval of Pueblo.
XII.CONCLUSIONS
It is submitted that this Consolidated Service Plan for Villa BellaMetropolitan
DistrictNos. 1-3as required by §32-1-204.5(1), C.R.S., has established that:
A.There is sufficient existing and projected need for organized service in the
area to be served by the Districts.
B.The existing service in the area to be served by the Districts is inadequate for
presentand projected needs.
C.The Districts are capable of providing economical and sufficient service to
the area within their boundaries.
D.The area included in the Districts does have, and will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis.
Therefore, it is hereby respectfully requested that the Board of Trustees of the City
of Pueblo, Colorado, which has jurisdiction to approve this Service Plan by virtue of §32-
1-204.5, C.R.S., et seq., as amended, adopta resolution, which approves this Amended and
Restated ConsolidatedService Plan for Villa BellaMetropolitan District Nos. 1-3,as
submitted.
Respectfully revised and re-submitted this ___day of August, 2021.
COLLINS COCKREL AND COLE, PC
___\\s\\_____________
Counsel to the Villa Bella
Metropolitan District Nos. 1-3
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DN 6134244.1
EXHIBIT A-1
Legal Descriptions and Maps of Initial Districts Boundaries
{00845917.DOCX / 3 }
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DN 6134244.1
EXHIBIT A-2
Legal Description and Map of Future Inclusion Area
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DN 6134244.1
EXHIBIT B
Vicinity Map
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DN 6134244.1
EXHIBIT C
Financing Plan
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32
DN 6134244.1
EXHIBIT D
Public Improvements and Costs
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DN 6134244.1
EXHIBIT E
Statutory Contents of this Service Plan
I.A description of the proposed services;
II.A financial plan showing how the proposed services are to be financed;
III.A preliminary engineering or architectural survey showing how the proposed
services are to be provided;
IV.A map of the Districts' boundaries and an estimate of the population and
valuation for assessment of the Districts;
V.A general description of the facilities to be constructed and the standards of
such construction, including a statement of how the facility and service standards of the
Districts are compatible with facility and service standards of the Cityand of municipalities
and special districts which are interested parties pursuant to §32-1-204(l), C.R.S.;
VI.A general description of the estimated cost of acquiring land, engineering
services, legal services, administrative services, initial proposed indebtedness and
estimated proposed maximum interestrates and discounts, and other major expenses
related to the organization and initial operation of the Districts;
VII.A description of any arrangement or proposed agreement with any political
subdivision for the performance of any services between the Districts and such other
political subdivisions; and
VIII.Information satisfactory to establish that each of the following criteria as set
forth in §32-1-203, C.R.S., has been met:
(a)That there is sufficient existing and projected need for organized service in
the area to be served by the Districts;
(b)That the existing service in the area to be served by the Districts is inadequate
for the present and projected needs;
(c)That the Districts are capable of providing economical and sufficient service
to the area within their boundaries;
(d)That the area to be included in the Districts has, or will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis.
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DN 6134244.1
EXHIBIT F
Proposed Intergovernmental Agreements
{00845917.DOCX / 3 }
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DN 6134244.1
EXHIBIT G
Notice of Special District Disclosure
Name of District(s): Villa Bella Metropolitan Districts Nos. 1, 2,
and 3
Contact Information for District: Spencer Fane LLP
1700 Lincoln, Suite 2000
Denver, Colorado 80203
(303) 839-3800
Type of Districts: Metropolitan district organized pursuant to
C.R.S. 32-1-101et seq. The District will
provide operating and maintenance of certain
public improvements within the Villa Bella
development, which operations and
maintenance functions may be provided
through intergovernmental agreements
Identify Districts’ Improvements Financed by Streets and safety protection improvements
Proposed Bonds: On and off-site utilities, including water and
wastewaterimprovements
Storm Drainage improvements
Recreational facilities and park
improvements, including, but not limited to,
entry parks, neighborhood parks, pocket
parks, trails and pools
Landscaping within public right-of-way
Fire protection improvements including, but
limited to, a fire station
Any other improvements authorized by
Article 1, Title 32, C.R.S. of the Special
District Act
Identify Services/Facilities Park and recreation related improvements,
Operated/Maintained by Districts: maintenance of landscaping within public
right-of-way, including but not limited to
street trees and streetscape improvements, the
provision of covenant control and
enforcement services to the extent such
covenant control functions are not provided
by property owners associations within the
Villa Bella development.
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DN 6134244.1
Mill Levy Cap: Maximum Debt Mill Levy = sixty (60) mills
(Note: This District may or may not be for Districts Nos. 1, 2 and 3
certifying a mill levy at the time of your Maximum Operating Mill Levy = No
purchase. Please verify by contacting the maximum–set by Board of Directors to
District.)meet annual costs
If there are changes in themethod of
calculating assessed valuation or any
constitutionally mandated tax credit, cut or
abatement; the mill levy limitations set forth
above may be increased or decreased to
reflect such changes, so that to the extent
possible, the actual tax revenuegenerated by
the mill levy, as adjusted for changes
occurring after January 1, 2021, are neither
diminished nor enhanced as a result of such
changes.
Authorized Debt of the District(s) per Service $63,200,000 but limited to what may be
Plan:financed by the Maximum Debt Mill Levy
applicable to each District.
Voter Authorized Debt per Election for each $ 63,200,000 for Street Improvements
District:$ 63,200,000 for Parks and Recreation
Improvements
$ 63,200,000 for Water Improvements
$ 63,200,000 for Sanitation Improvements
$ 63,200,000 for Transportation
Improvements
$ 63,200,000 for Mosquito Control
$ 63,200,000 for Safety Protection
Improvements
$ 63,200,000 for Television Relay and
Transportation
$ 63,200,000 for Security Improvements
$ 63,200,000 for Operations and
Maintenance Debt
$ 126,400,000 for Refunding
$ 63,200,000 for District Intergovernmental
Agreements as Debt
$ 63,200,000 for Reimbursement
Agreements
$ 63,200,000 for Construction Agreements
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DN 6134244.1
NOTICE OF PUBLIC HEARING ON CONSOLIDATED SERVICE PLAN
IN RE THE ORGANIZATION OF VILLA BELLA METROPOLITAN DISTRICT NOS. 1-3,
CITY AND COUNTY OF PUEBLO, STATE OF COLORADO
NOTICE IS HEREBY GIVEN that, pursuant to § 32-1-204(1), C.R.S., a Consolidated Service Plan
(the “Service Plan”) for the proposed Villa Bella Metropolitan District Nos. 1-3 (each a “District”)
has been filed with the City of Pueblo (the “City”).
A public hearing on the Service Plan will be held by the City Council on September 13, 2021, at
7:00 p.m., at Pueblo Memorial Hall, 1 City Hall Place, Pueblo, CO 81003.
The purpose of the hearing is to consider the Service Plan and to form a basis for adopting a
resolution approving, conditionally approving or disapproving the Service Plan. The proposed
Districts will be metropolitan districts that may provide for the financing, design, acquisition,
installation, construction, operation, and maintenance of certain public improvements such as
water, sanitary sewer, street, traffic and safety control, drainage and stormwater, parks and
recreation, transportation, and television relay and translation, mosquito and pest control, covenant
enforcement, and security, as authorized in each District’s Service Plan and the Colorado Special
District Act. A total mill levy cap of sixty (60) mills is proposed for each District, subject to certain
adjustments and release provisions set forth in the Service Plan.
A general description of the land contained within the boundaries of the proposed Districts is as
follows: North of Colorado 47 and West of Beculite Mesa Road in the City and County of Pueblo.
Pursuant to § 32-1-203(3.5), C.R.S., any person owning property in the proposed Districts may
request that such property be excluded from the Districts by submitting such request to the the City
no later than ten days prior to the public hearing.
BY ORDER OF THE CITY COUNCIL OF PUEBLO
Published In: Pueblo Chieftain
Published On: August 27, 2021
{00845490.DOC / }