HomeMy WebLinkAbout16074RESOLUTION NO.16074
A RESOLUTION APPROVING THE SERVICE PLANS FOR CSUP
METROPOLITAN DISTRICT NOS. 1-3
WHEREAS, proposed Service Plans for the CSUP Metropolitan District Nos. 1-3 were
Colorado Municipal Corporation
-1-204.5, C.R.S.; and,
WHEREAS,
Service Plans on August 11, 2025; and,
newspaper of general circulation within the boundaries of the CSUP Metropolitan District Nos. 1-
WHEREAS, a notice of the date, time and location of the public hearing was mailed on
July 15 and 16, 2025, to the governing body of the existing municipalities and special districts
which have levied an ad valorem tax within the next preceding tax year and which have
boundaries within a radius of three miles of the proposed boundaries of the Districts and, on July
15 and 16, 2025, to the petitioner and to the property owner; and,
WHEREAS, the Council has considered the Service Plans 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 Plans should be approved as
provided herein, pursuant to Section 32-1-204.5, C.R.S.
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
The information contained within the Service Plans for the CSUP 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 32-1-202(2) and 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
Plans, have been fulfilled.
SECTION 4.
The Council hereby approves and authorizes the attachment of this Resolution to the
respective Petitions for organization of the Districts to be filed in the District Court 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: August 11, 2025
BY: Dennis Flores
MEMBER OF CITY COUNCIL
APPROVED: __________________________
PRESIDENT OF CITY COUNCIL
ATTESTED BY: ________________________
CITY CLERK
City Clerk's Office Item # J1
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: August 11, 2025
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Harley Gifford, Deputy City Attorney
SUBJECT: A RESOLUTION APPROVING THE SERVICE PLANS FOR CSUP
METROPOLITAN DISTRICT NOS. 1-3
SUMMARY:
The property owner, Colorado State University Research Foundation d/b/a CSU Strata,
is the proponent for the creation of the CSU Metropolitan Districts Nos.1-3 established
under Title 32 of the Colorado Revised Statutes have submitted Service Plans (one for
each proposed district) to the City for the proposed districts. The areas where the
districts would be established total approximately 116 acres. The properties were
annexed into the City of Pueblo on May 9, 1955, by Ordinance No. 2160. 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 for each district prior to proceeding with the remaining steps
to form the districts under state statutes.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
Districts
Nos. 1-
in creating a metropolitan district under Title 32 of the Colorado Revised Statutes. The
proposed metropolitan districts are contained within the area that is located generally
south of Desert Flower Blvd and west of Bonforte Boulevard, in the City of Pueblo, Pueblo
County, Colorado. The Service Plans contain 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
The
proposed metropolitan districts may not deviate in a material manner from the
requirements of the Service Plan.
The Service Plan consists of a description of the proposed services, financial analyses
and general engineering plans showing how proposed facilities and services will be
provided and financed. The plans provide a general description of the facilities to be
constructed, general estimated costs, and the standards of such construction, including
a statement of how the facility and service standards of the Districts are compliant with
facility and service standards of the City. 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.
CSUP Metropolitan Districts Nos. 1-3, containing a service area of approximately 116
acres, will be organized to finance, construct, own, manage and operate the public
improvements throughout the development areas. The multiple district structure is
anticipated to provide flexibility to finance, and operate and maintain, the public
improvements needed to serve several different types of future property uses, such as
residential, commercial, and mixed-use property. Under the multiple district structure, it
is anticipated that the Districts, collectively, will undertake the financing and construction
of the improvements contemplated in the Service Plans. Specifically, the Districts shall
enter into an intergovernmental Agreement related to debt service matters, which shall
govern the relationships between and among the Districts with respect to the financing,
installation and construction of the improvements contemplated in the Service Plans.
Each individual District shall have the responsibility to coordinate the operation and
maintenance of improvements within its boundaries, including the decision on what mill
levy to impose for the provision of operation and maintenance services to its taxpayers
and service users.
The area proposed to be included within the boundaries of District No. 1 will initially
contain approximately 0.06 acres. It is intended that District No. 1 will provide a part or
all of the Public Improvements for the use and benefit of all anticipated inhabitants and
taxpayers of District No. 1. The primary purposes of District No. 1 will be to finance the
construction of these Public Improvements and provide ongoing operation and
maintenance services as more specifically set forth in the Service Plan. The Service
time to time in accordance with the provisions of the Service Plan.
The area proposed to be included within the boundaries of District No. 2 will initially
contain approximately 0.07 acres. It is intended that District No. 2 will provide a part or
all of the Public Improvements for the use and benefit of all anticipated inhabitants and
taxpayers of District No. 2. The primary purposes of District No. 2 will be to finance the
construction of these Public Improvements and provide ongoing operation and
maintenance services as more specifically set forth in the Service Plan. The Service
Plan allo
time to time in accordance with the provisions of the Service Plan.
The area proposed to be included within the boundaries of District No. 3 will initially
contain approximately 0.08 acres. It is intended that District No. 3 will provide a part or
all of the Public Improvements for the use and benefit of all anticipated inhabitants and
taxpayers of District No. 3. The primary purposes of District No. 3 will be to finance the
construction of these Public Improvements and provide ongoing operation and
maintenance services as more specifically set forth in this Service Plan. The Service
time to time in accordance with the provisions of the Service Plan.
The Service Plans provide for the planning, design, acquisition, construction, installation,
relocation and/or redevelopment and financing of certain street, water, sanitation, safety
protection, park and recreation, transportation, and limited fire protection improvements
and services, as well as security services, and covenant enforcement services within and
without the service area. Under the Service Plans, the Districts are authorized to provide
such additional services and exercise such powers as are expressly or impliedly granted
by Colorado law.
The City is not obligated to own, operate, or maintain any of the improvements provided
by the districts, 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
districts or other appropriate entities.
To finance the improvements, totaling an estimated $11,715,530 in 2025 dollars, 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, as adjusted for changes in the method
of calculating assessed valuation or any constitutionally mandated tax credit, cut or
abatement.
FINANCIAL IMPLICATIONS:
The approval of the Service Plans does not impose any liability on the City nor create
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
The notice of the filing of the Service Plans with the City Clerk has been distributed to all
existing taxing districts within the service area of the proposed districts. The notice of
the public hearing on the proposed Service Plans has been mailed to 3-mile radius taxing
entities in accordance with Title 32, Colorado Revised Statutes. Publication of the public
hearing on the proposed Service Plans was made in the Pueblo Chieftain newspaper, in
accordance with Title 32, Colorado Revised Statutes.
ALTERNATIVES:
If the Service Plans are not approved or not approved in the timeframe to meet the State
Statutory requirements for the proponents to conduct an election to form the districts, the
proponents will not be able to hold another election, per state statutes until November
2027.
RECOMMENDATION:
Approval of the Resolution.
ATTACHMENTS:
1. SD-25-01 Attachments
DRAFT
McGEADY BECHER CORTESE WILLIAMS P.C.
June 18, 2025
SERVICE PLAN
FOR
CSUP METROPOLITAN DISTRICTNO. 1
PUEBLO, COLORADO
Prepared by
McGEADY BECHER CORTESE WILLIAMS P.C.
th
450 E. 17 Ave., Suite 400
Denver, CO 80203-1254
Submitted: June 3, 2025
Approved: __________________
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................................1
A. Purpose and Intent....................................................................................................1
B.Need for the Districts. ..............................................................................................1
C. Objective of the City Regarding the District’s Service Plan. ..................................1
II. DEFINITIONS .....................................................................................................................2
III. BOUNDARIES ....................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ..4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES........4
A. Types of Improvements ...........................................................................................4
1. Street Improvements....................................................................................4
2. Water Improvements ....................................................................................5
3. Sanitation Improvements .............................................................................5
4. Safety Protection Improvements..................................................................5
5. Park and Recreation Improvements .............................................................5
6. Transportation Improvements......................................................................5
7. Fire Protection ..............................................................................................6
B.Other Powers. ...........................................................................................................6
1. Operations and Maintenance........................................................................6
2. Security Services ..........................................................................................6
3. Covenant Enforcement.................................................................................6
4. Phasing; Deferral .........................................................................................6
5. Service Plan Amendment.............................................................................6
6. Additional Services......................................................................................6
7. Subdistricts ...................................................................................................7
8. Special Improvement District ......................................................................7
C.Construction Standards Limitation ..........................................................................7
D. Inclusion Limitation .................................................................................................7
E. Overlap Limitation ...................................................................................................7
F. Fee Limitation..........................................................................................................7
G. Total Debt Issuance Limitation ................................................................................7
H. Privately Placed Debt Limitation .............................................................................8
I. Bankruptcy Limitation.............................................................................................8
J. Intergovernmental Agreements ................................................................................8
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS. ........................................................9
VII.FINANCIAL PLAN.............................................................................................................9
A. General. ....................................................................................................................9
B.Maximum Voted Interest Rate and Maximum Underwriting Discount..................9
C. Maximum Debt Mill Levy. ....................................................................................10
D.Maximum Debt Mill Levy Imposition Term.........................................................10
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E. Debt Repayment Sources. ......................................................................................11
F.Security for Debt....................................................................................................11
G. Debt Instrument Disclosure Requirement ..............................................................11
H. District’s Operating Costs. .....................................................................................11
VIII. ANNUAL REPORT ..........................................................................................................12
A. General. ..................................................................................................................12
B. Reporting of Significant Events. ............................................................................12
IX. DISSOLUTION .................................................................................................................13
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT ........................................13
XI. CONCLUSION ..................................................................................................................13
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LIST OF EXHIBITS
EXHIBIT A-1 Initial District Boundary Legal Description
EXHIBIT A-2 Inclusion Area Boundary Legal Description
EXHIBIT B Vicinity Map
EXHIBIT C-1 Initial District Boundary Map
EXHIBIT C-2 Inclusion Area Boundary Map
EXHIBIT D Service Plan Intergovernmental Agreement with the City of Pueblo
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I.INTRODUCTION
A.Purpose and Intent.
CSU Pueblo Development Project is a residential/commercial/mixed-use
development (the “Project”) in Pueblo, Colorado (the “City”). The Project comprises
approximately One Hundred Sixteen(116) acres. The Project is currently owned by and to be
developed by __________ (the “Developer”).
CSUP Metropolitan District No. 1 (the “District”) is an independent unit 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, its activities are subject to review by theCityonly insofar
as they may deviate in a material matter from the requirements of the Service Plan. It is intended
that the District will provide a part or all of the Public Improvements(defined below) for the use
and benefit of all anticipated inhabitants and taxpayers of the District. The primary purposes of
the District will be to finance the construction of these Public Improvements and provide
ongoing operation and maintenance services as more specifically set forth in this Service Plan.
The District is being organized concurrently with the organization of District No.
2 and District No. 3. The multiple district structure is anticipated to provide flexibility to finance
and operate and maintain the public improvements needed to serve several different types of
future property uses, such as residential, commercial, and mixed-use property. Under the
multiple district structure, it is anticipated that the Districts, collectively, will undertake the
financing and construction of the improvements contemplated in this Service Plan. Specifically,
the Districts shall enter into an Intergovernmental Agreement related to debt service matters,
which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
B. Need for the Districts.
There are currently no other governmental entities, including theCity, located in
the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake
theplanning, design, acquisition, construction, installation,relocation,redevelopment, financing,
operation and maintenance of the Public Improvements needed for the Project. Formation of the
Districts is therefore necessary in order for the Public Improvements required for the Project to
be provided in the most economic manner possible.
C.Objective of theCityRegarding the District’s Service Plan.
The City’s objective in approving the Service Plan is to authorize the District to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment and financing of the Public Improvements from the proceeds of Debt to be issued
by the Districts and other legally available revenues of the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy
Imposition Term for residential properties and at a mill levy no higher than the Maximum Debt
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Mill Levy andFeesand any other legally available revenue. Debt which is issued within these
parameters and, as further described in the Financial Plan, will insulate property owners from
excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and
reasonable discharge of the Debt.
The primary purpose of the Districts is to provide for the Public Improvements
associated with development and, if applicable, regional needs, and operate and maintain Public
Improvements not accepted by the City, other appropriate jurisdiction or an owners’ association.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan, subdivision improvement
agreement or other document approved by the Citythat, among other things, identifies
Public Improvements necessary for facilitating development for property within the
Service Area.
Board: means the board of directors of the District.
Bond, Bonds or Debt: means bonds or other obligations for the payment of which the
District has promised to impose an ad valorem property tax mill levy, or impose and
collect Fee revenue.
City Council: means the City Council of the City of Pueblo, Colorado.
District No. 1: means CSUP Metropolitan District No. 1.
District No. 2: means CSUP Metropolitan District No. 2.
District No. 3: means CSUP Metropolitan District No. 3.
Districts: means District No. 1, District No. 2, and District No. 3 collectively.
End User:means any owner, or tenant of any owner, of any taxable improvement within
the Districts who is intended to become burdened by the imposition of ad valorem
property taxes subject to the Maximum Debt Mill Levy. By way of illustration, a
resident homeowner, renter, commercial property owner, or commercial tenant is an End
User. The business entity that constructs homes or commercial structures is not an End
User.
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
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employee of the District and has not been otherwise engaged to provide services in
connection with the transaction related to the applicable Debt.
Fees: means any fee imposed and/or received by the District for services, programs, or
facilities provided by the District.
Financial Plan: means the Financial Plan described in SectionVII which describes
(i) how the Public Improvements are to be financed; (ii) how the Debt is expected to be
incurred; and (iii) the estimated operating revenue derived from property taxes for the
first budget year.
Inclusion Area Boundaries: means the boundaries of the area legally described in
Exhibit A-2 and depicted on the Inclusion Area Boundary Map.
Inclusion Area Boundary Map: means the map attached hereto as ExhibitC-2, depicting
the property proposed for inclusion within the District.
Initial District Boundaries: means the boundaries of the area legally described in Exhibit
A-1 and depicted on the Initial District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C-1, depicting
the District’s initial boundaries.
Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to
impose for payment of Debt as set forth in Section VII.Cbelow.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy on a particular property developed for residential uses as set forth in Section
VII.D below
Project: means the CSU Pueblo Development Project.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed as
generally described in the Special District Act, except as specifically limited in SectionV
below to serve the future taxpayers and inhabitants of the Service Area as determined by
the Board.
Service Area: means, collectively,the property within the Initial District Boundaries and
the Inclusion Area Boundaries.
Service Plan: means this service plan for the District approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved by the
City in accordance with applicable law.
Special District Act: means Section 32-1-101, et seq., of the Colorado Revised Statutes,
as amended from time to time.
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State: means the State of Colorado.
Taxable Property: means real property subject to ad valorem taxes imposed by the
District.
Total Debt Issuance Limit: means the maximum amount of general obligation Debt the
Districts, in aggregate, may issue, which amount shall be Twenty-One Million Dollars
($21,000,000).
III. BOUNDARIES
The Initial District Boundaries includeapproximatelysix hundredths(0.06) acres,and the
total area proposed to be in the Inclusion Area Boundaries is approximately One Hundred
Sixteen (116) acres.Legal descriptionsof the Initial District Boundaries and the Inclusion Area
Boundaries are attached hereto as ExhibitA-1 and Exhibit A-2, respectively. A vicinity map is
attached hereto as Exhibit B. A map of the Initial District Boundaries is attached hereto as
Exhibit C-1, and a map of the Inclusion Area Boundaries is attached hereto as Exhibit C-2. It is
anticipated that the District’s boundaries may change from time to time as it undergoes
inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501,
et seq., C.R.S., subject to the limitations set forth in ArticleV below.
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
The Service Area consists of approximately One Hundred Sixteen(116) acres) acres of
land of residential, commercial,and mixed-use property. The current assessed valuation of the
Service Area is $0.00 for purposes of this Service Plan and, at build out, is expected to be
sufficient to reasonably discharge the Debt under the Financial Plan. The population of the
Districts at build-out is estimated to be approximately eight hundred twenty (820) people.
Approval of this Service Plan by the City does not imply approval of the development of
a specific area within the District, nor does it imply approval of the number of residential units or
the total site/floor area of commercial or industrial buildings identified in this Service Plan or
any of the exhibits attached thereto, unless the same is contained within an Approved
Development Plan.
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A. Types of Improvements.The District shall have the power and authority to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment, financing, operation, and maintenance of Public Improvements,within and
without the boundaries of the District,as such power and authority is described in the Special
District Act, and other applicable statutes, common law, and the Constitution. Without limiting
the foregoing, following is a general description of the types of Public Improvements and
services the District shall be authorized to provide.
1. Street Improvements.The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate,and maintain street and
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roadway improvements including, but not limited to, related landscaping, curbs, gutters,
sidewalks, culverts,and other drainage facilities, pedestrian ways, bridges, overpasses,
interchanges, signage, median islands, alleys, parking facilities, paving, lighting, grading and
irrigation structures, together with all necessary, incidental and appurtenant facilities, land and
easements, and all extensions of and improvements to said facilities. It is anticipated that street
improvements not accepted by the City or other appropriate jurisdiction or an owners’
association will be owned and maintained by the District.
2. Water Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate and maintain potable, non-
potable, and irrigation water systems including, but not limited to, transmission lines, distribution
mains and laterals, storage and treatment facilities, water right acquisition, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities. It is anticipated that water improvements not accepted by the
City or other appropriate jurisdiction or an owners’ association will be owned and maintained by
the District.
3. Sanitation Improvements. The District shall have the power and authority
to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain sanitation
improvements including, but not limited to, sanitary sewer transmission lines, wastewater
treatment, storm drainage, detention/retention ponds, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that sanitation improvements not accepted by the City or other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
4. Safety Protection Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
traffic and safety controls and devices on streets, highways and railroad crossings including, but
not limited to, signalization, signage and striping, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that safety protection improvements not accepted by the City orother
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
5. Park and Recreation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
park and recreation facilities and programs including, but not limited to, parks, pedestrian ways,
bike paths, bike storage facilities, signage, interpretive kiosks and facilities, open space,
landscaping, cultural activities, community centers, recreational centers, water bodies, wildlife
preservation and mitigation areas, irrigation facilities, playgrounds, pocket parks, swimming
pools, and other active and passive recreational facilities, together with all necessary, incidental
and appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that park and recreation improvements not accepted bythe City, other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
6.TransportationImprovements.The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain a
system to transport the public by bus, rail or any other means of conveyance, or any combination
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thereof, including, but not limited to, bus stops and shelters, park-and-ride facilities, parking
facilities, bike storage facilities, together with all necessary, incidental and appurtenant facilities,
land and easements, and all extensions of and improvements to said facilities. It is anticipated
that transportation improvements not accepted by the City or other appropriate jurisdiction or an
owners’ association will be owned and maintained by the District.
7. Fire Protection. The District shall have the power and authority to plan,
design, acquire, construct, install, relocate, redevelop and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
B.Other Powers.
1. Operations and Maintenance.The District shall be authorized to operate
and maintain Public Improvements not accepted by the City or other governmental entities
having proper jurisdiction or to an owners’ association. To the extent the District retains
ownership of any Public Improvements, the District shall be authorized to enter into one or more
agreements with owners’ associations pursuant to which such owners’ association(s) may
operate and maintain such Public Improvements.
2. Security Services. Subject to the provisions of Section 32-1-1004(7),
C.R.S., the District shall have the power to furnish security services within the Service Area.
3. Covenant Enforcement. Subject to the provisions of Section 32-1-
1004(8), C.R.S., the District shall have the power to furnish covenant enforcement and design
review services within the Service Area.
4. Phasing; Deferral. Except as may be limited herein, the District shall have
the right, without having to amend this Service Plan, to defer, delay, reschedule, re-phase or
restructure the financing and/or construction of the Public Improvements to accommodate the
pace of development within the Project, resource availability and the funding capability of the
District.
5. Service Plan Amendment. The District shall have the authority to amend
or modify this Service Plan, as needed, subject to the applicable statutory procedures.
6. Additional Services. Except as specifically provided herein, the District
shall be authorized to provide such additional services and exercise such powers as are expressly
or impliedly granted by Colorado law.
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7. Subdistricts. The District shall have the authority pursuant to Section 32-
1-1101(1)(f), C.R.S., and Sections 32-1-1101(1.5)(a)-(e), C.R.S., to divide the District into one
or more areas consistent with the services, programs and facilities to be furnished therein. The
exercise of such authority shall not be deemed a material modification of this Service Plan.
8. Special Improvement District. The District shall have the authority
pursuant to Section 32-1-1101.7, C.R.S., to establish one or more special improvement districts
within the boundaries ofthe District, including the power to levy assessments.
C.Construction Standards Limitation. The District will ensure that the Public
Improvements are designed and constructed in accordance with the applicable standards and
specifications of the City and of other governmental entities having proper jurisdiction.
D. Inclusion Limitation. The District shall have the authority to include within its
boundaries any property withinthe Service Area without the prior written consent of the City.
The District shall not include within any of its boundaries any property outside the Service Area
without the prior written consent of the City except upon petition of the fee owner or owners of
100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
E. Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill
Levy of the Districts.
F. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, or for operations and maintenance. No Fee related
to the funding of costs of a capital nature shall be authorized to be imposed upon or collected
from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the restrictions in this
definition shall not apply to any Fee imposed upon or collected from Taxable Property for the
purpose of funding operation and maintenance costs of the Districts.
G. Total Debt Issuance Limitation. The Districts shall not issue Debt in excess of the
Total Debt Issuance Limit; provided, however, any refunding Debt shall not count against the
Total Debt Issuance Limit. Any Debt, issued with a pledge or which results in a pledge, that
exceeds the Maximum Debt Mill Levy shall be deemed a material modification of this Service
Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless
and until such material modification has been approved by the City as part of a Service Plan
Amendment.
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H. Privately Placed Debt Limitation. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
I. Bankruptcy Limitation. All of the limitations contained in this Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt
Mill Levy Imposition Term and the Fees have been established under the authority of the City to
approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly
intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the “political or governmental powers” reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C. Section 903, and are also included in the “regulatory or electoral
approval necessary under applicable nonbankruptcy law” as required for confirmation of a
Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum
Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material
modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an
authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
J. Intergovernmental Agreements. The District shall have the authority to enter into
such intergovernmental agreements as may be necessary or appropriate to perform the functions
for which the District has been organized, including the provision of Public Improvements
required by any Approved Development Plan. It is anticipated that the Districts, collectively,
will undertake the financing and construction of the improvements contemplated in this Service
Plan. Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt
service matters, which shall govern the relationships between and among the Districts with
respect to the financing, installation and construction the improvements contemplated herein.
Each individual District shall have the responsibility to coordinate the operation and maintenance
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of improvements within its boundaries, including the decision on what mill levy to impose for
the provision of operation and maintenance services to its taxpayers and service users.
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS.
An estimate of the costs of the Public Improvements which may be planned for,
designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed was
prepared based upon a preliminary engineering survey and estimates derived from the zoning on
the property in the Service Area and is approximately Eleven Million SevenHundred Fifteen
Thousand FiveHundred Thirty Dollars ($11,715,530) in 2025dollars. All construction cost
estimates are based on the assumption that construction conforms to applicable local, State or
Federal requirements. Actual Public Improvements to be constructed and their costs may vary,
and the Board shall have the discretion to construct any Public Improvements authorized in an
Approved Development Plan and the actual costs may increase or decrease as development
occurs without the necessity of amending this Service Plan.
VII. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation and/or redevelopment of the Public Improvements from its
revenues and by and through the proceeds of Debt to be issued by the District. The Financial
Plan for the District shall be to issue such Debt as the District can reasonably pay from revenues
derived within the Maximum Debt Mill Levy Imposition Term and from the Maximum Debt
Mill Levy, Fees and other legally available revenues. The total Debt that the Districts shall be
permitted to issue shall not exceed the Total Debt Issuance Limit and shall be permitted to be
issued on a schedule and in such year or years as the District determines shall meet the needs of
the Financial Plan referenced above and phased to serve development as it occurs. All bonds and
other Debt issued by the District may be payable from any and all legally available revenues of
the District, including, but not limited to, general ad valorem taxes to be imposed upon all
Taxable Property of the District (and associated specific ownership tax revenues) and Fees. The
District will also 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 to time, and to receive revenue from privately imposed public
improvement fees, if applicable and revenue received through agreements with other
governmental entities.
Prior to the issuance of Debt, it is anticipated that the Developer may advance
funds to the District to pay the organizational costs of the District and costs for constructing and
installing Public Improvements. The District shall be authorized to reimburse such Developer
advances with interest from Debt proceeds or other legally available revenues.
B.Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. In the event of a default, the proposed maximum interest rate on any Debt is not
expected to exceed fifteen percent (15%). The proposed maximum underwriting discount will be
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three percent (3%). Debt, when issued, will comply with all relevant requirements of this
Service Plan, State law and Federal law as then applicable to the issuance of public securities.
C.Maximum Debt Mill Levy.
The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is
permitted to impose upon the Taxable Property of the District for payment of Debt, and shall be
determined as follows:
1. For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 below; provided that if, on or after January 1, 2004, 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
decreased to reflect such changes, such increases or decreases to be determined by the Board in
good faith (such determination to be binding and final) so that to the extent possible, the actual
tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004,
are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing,
a change in the ratio of actual valuation shall be deemed to be a change in the method of
calculating assessed valuation.
2. For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the debt service on such Debt, without limitation of rate.
3. For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 above, so that the District is entitled to pledge to its payment an unlimited ad
valorem mill levy, the District may provide that such Debt shall remain secured by such
unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to assessed
ratio. All Debt issued by the District must be issued in compliance with the requirements of
Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized
into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as
used herein shall be deemed to refer to the District and to each such subdistrict separately, so that
each of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
D. Maximum Debt Mill Levy Imposition Term.
The District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levy for repayment of Debt) on any single property developed for
residential uses which exceeds forty (40) years after the year of the initial imposition of such mill
levy unless a majority of the Board of Directors of the District are residents of the District and
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4917-3133-9831, v. 11
have voted in favor of 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.; etseq.
E. Debt Repayment Sources.
The District may impose a mill levy as a primary source of revenue for repayment
of debt service and for operations and maintenance. The District may also rely upon various
other revenue sources authorized by law. At the District’s discretion, these may include the
power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(l),
C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District
exceed the Maximum Debt Mill Levy, except as provided in Section VII.C.2 above or, for
residential property within the District, the Maximum Debt Mill Levy Imposition Term.
F. Security for Debt.
The District 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 District’s obligations; nor shall
anything in the Service Plan be construed so as to create any responsibility or liability on the part
of the City in the event of default by the District in the payment of any such obligation.
G. Debt Instrument Disclosure Requirement. In the text of each Bond and any other
instrument representing and constituting Debt, the District shall set forth a statement in
substantially the following form:
By acceptance of this instrument, the owner of this Bond agrees
and consents to all of the limitations in respect of the payment of
the principal of and interest on this Bond contained herein, in the
resolution of the District authorizing the issuance of this Bond and
in the Service Plan for creation of 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.
H. District’s Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the District’s organization and initial
operations, are anticipated to be Seventy-Five Thousand Dollars ($75,000), which will be
eligible for reimbursement from Debt proceeds.
In addition to the capital costs of the Public Improvements, the District will
require operating funds for administration and to plan and cause the Public Improvements to be
constructed and maintained. The first year’s operating budget is estimated to be Fifty Thousand
Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues.
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The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the
District’s ability to increase its mill levy as necessary for provision of operation and maintenance
services to its taxpayers and service users. It is anticipated that the Developer will advance funds
to the District to pay its operating costs until such time as the District has sufficient revenue from
its operation and maintenance mill levy. The District shall be authorized to reimburse the
Developer for such advances with interest.
VIII. ANNUAL REPORT
A.General.
The District shall be responsible for submitting an annual report to the City no
later than August 1st of each year following the year in which the Order and Decree creating the
District has been issued.
B.Reporting of Significant Events.
The annual report shall include information as to any of the following:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the prior year.
2. Intergovernmental Agreements either entered into or proposed as of
December 31 of the prior year.
3. A summary of any litigation which involves the District Public
Improvements as of December 31 of the prior year.
4. Status of the District’s construction of the Public Improvements as of
December 31 of the prior year.
5. A list of all facilities and improvements constructed by the District that
have been dedicated to and accepted by the City as of December 31 of the prior year.
6. The assessed valuation of the District for the current year.
7. Current year budget.
8. Audit of the District’s financial statements, for the year ending December
31 of the previous year, prepared in accordance with generally accepted accounting principles or
audit exemption, if applicable.
9. Notice of any uncured events of default by the District, which continue
beyond a ninety (90) day period, under any Debt instrument.
10. Any inability of the District to pay its obligations as they come due, in
accordance with the terms of such obligations, which continue beyond a ninety (90) day period.
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IX. DISSOLUTION
In no event shall the District be dissolveduntil the District has provided for the payment
or discharge of all of their outstanding indebtedness and other financial obligations as required
pursuant to State statutes.
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT
The form of the service plan intergovernmental agreement required by the City, relating
to the limitations imposed on the District’s activities, is attached hereto as Exhibit D. The
District shall approve the intergovernmental agreement in the form attached as Exhibit D at its
first Board meeting after its organizational election. Failure of the District to execute the
intergovernmental agreement as required herein shall constitute a material modification and shall
require a Service Plan Amendment. The City Council shall approve the intergovernmental
agreement in the form attached as Exhibit D at the public hearing approving the Service Plan.
XI. CONCLUSION
It is submitted that this Service Plan for the District, as required by Section 32-1-203(2),
C.R.S., establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2. The existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries;
4. The area to be included in the District does have, and will have, the
financial ability to discharge the proposed indebtedness on a reasonable basis;
5. Adequate service is not, and will not be, available to the area through the
City/Town/County or other existing municipal or quasi-municipal corporations, including
existing special districts, within a reasonable time and on a comparable basis;
6. The facility and service standards of the District are compatible with the
facility and service standards of the City within which the special district is to be located and
each municipality which is an interested party under Section 32-1-204(1), C.R.S;
7. The proposal is in substantial compliance with a comprehensive plan
adopted by the City;
8. The proposal is in compliance with any duly adopted City, regional or
state long-range water quality management plan for the area; and
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9. The creation of the District is in the best interests of the area proposed to
be served.
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EXHIBIT A-1
Initial District Boundary Legal Description
A-1-1
EXHIBIT A-2
Inclusion Area Boundary Legal Description
A-2-1
EXHIBIT B
Vicinity Map
B-1
EXHIBIT C-1
Initial District Boundary Map
C-1-1
4917-3133-9831, v. 11
EXHIBIT C-2
Inclusion Area Boundary Map
C-2-1
4917-3133-9831, v. 11
EXHIBIT D
SERVICE PLAN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF PUEBLO, COLORADO
AND
CSUP METROPOLITAN DISTRICT NO. 1
THIS SERVICE PLAN INTERGOVERNMENTAL AGREEMENT is made and
entered into as of this ____ day of ___________, ___________, by and between the CITY OF
PUEBLO, a home-rule municipal corporation of the State of Colorado (“City”), and CSUP
METROPOLITAN DISTRICT NO. 1, a quasi-municipal corporation and political subdivision
of the State of Colorado (the “District”). The City and the District are collectively referred to as
the Parties.
RECITALS
WHEREAS, the District was organized to provide those services and to exercise powers
as are more specifically set forth in the District’s Service Plan approved by the City on
__________________ (“Service Plan”); and
WHEREAS, the Service Plan makes reference to the execution of an intergovernmental
agreement between the City and the District; and
WHEREAS, the City and the District have determined it to be in the best interests of their
respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Operations and Maintenance. The Districts shall dedicate the Public
Improvements (as defined in the Service Plan) to the City or other appropriate jurisdiction or
owner’s association in a manner consistent with the Approved Development Plan and other rules
and regulations of the City and applicable provisions of the City Code. The Districts shall be
authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise
required to be dedicated to the City or other public entity, including, but not limited to street
improvements (including roads, curbs, gutters, culverts, sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements), traffic and safety
controls, retaining walls, park and recreation improvements and facilities, trails, open space,
landscaping, drainage improvements (including detention and retention ponds, trickle channels,
and other drainage facilities), irrigation system improvements (including wells, pumps, storage
facilities, and distribution facilities), and all necessary equipment and appurtenances incident
thereto.
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2. Fire Protection. The District shall have the power and authority to plan, design,
acquire, construct, install, relocate, redevelop,and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
3. Construction Standards. The District will ensure that the Public Improvements
are designed and constructed in accordance with the standards and specifications of the City and
of other governmental entities having proper jurisdiction and of those special districts that
qualify as “interested parties” under Section 32-1-204(1), C.R.S., as applicable. The District will
obtain the City’s approval of civil engineering plans and will obtain applicable permits for
construction and installation of Public Improvements prior to performing such work.
4. Issuance of Privately Placed Debt. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
5. Inclusion Limitation. The Districts shall not include within any of their
boundaries any property outside the Service Area without the prior written consent of the City.
The Districts shall not include within any of its boundaries any property inside the inclusion area
boundaries without the prior written consent of the City except upon petition of the fee owner or
owners of 100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
6.Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
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4917-3133-9831, v. 11
payment of Debt of such proposed districts will not any time exceed the Maximum Debt Mill
Levy of the Districts.
7. Initial Debt. On or before the effective date of approval by the City of an
Approved Development Plan (as defined in the Service Plan), the District shall not: (a) issue any
Debt; nor (b) impose a mill levy for the payment of Debt by direct imposition or by transferof
funds from the operating fund to the Debt service funds; nor (c) impose and collect any fees used
for the purpose of repayment of Debt.
8. Total Debt Issuance. The Districts shall not issue Debt in excess Twenty-One
Million Dollars ($21,000,000) in the aggregate.
9. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, and/or for operations and maintenance. No Fee
related to the funding of costs of a capital nature shall be authorized to be imposed upon or
collected from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the
restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable
Property for the purpose of funding operation and maintenance costs of the Districts.
10. Bankruptcy. All of the limitations contained in the Service Plan, including, but
not limited to, those pertaining to the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term have been established under the authority of the City to approve a Service
Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such
limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law, included in the
“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11
U.S.C. Section 903), and are also included in the “regulatory or electoral approval necessary
under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy
Plan under Bankruptcy Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the
Maximum Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed
a material modification of the Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be
an authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
11. Service Plan Amendment Requirement. Actions of the District which violate the
limitations set forth in Sections V.A.1-9 or VII.B-G of the Service Plan shall be deemed to be
material modifications to the Service Plan and the City shall be entitled to all remedies available
under State and local law to enjoin such actions of the District.
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12. Multiple District Structure. It is anticipated that the Districts, collectively, will
undertake the financing and construction of the improvements contemplated herein.
Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt service
matters, which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
13. Annual Report. The District shall be responsible for submitting an annual report
to the City Manager no later than August 1st of each year following the year in which the Order
and Decree creating the District has been issued, pursuant to the City Code and containing the
information set forth in Section VIII of the Service Plan.
14. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the
maximum mill levy the District is permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows:
(a) For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 of the Service Plan; provided that if, on or after
January 1, 2004, 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 decreased to reflect such changes, such increases or decreases to be
determined by the Board in good faith (such determination to be binding and final) so that to the
extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes
occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes.
For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a
change in the method of calculating assessed valuation.
(b) For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the Debt service on such Debt, without limitation of rate.
(c) For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 of the Service Plan, so that the District is entitled to pledge to its payment an
unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by
such unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to
assessed ratio. All Debt issued by the District must be issued in compliance with the
requirements of Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
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4917-3133-9831, v. 11
of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
The Maximum Debt Mill Levy shall not apply to the District’s Operations and
Maintenance Mill Levy for the provision of operation and maintenance services to the District’s
taxpayers and service users.
15. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy
for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt)
on any single property developed for residential uses which exceeds forty (40) years after the
year of the initial imposition of such mill levy unless a majority of the Board of Directors of the
District are residents of the District and have voted in favor of 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.
16. Notices. All notices, demands, requests,or other communications to be sent by
one party to the other hereunder or required by law shall be in writing and shall be deemed to
have been validly given or served by delivery of same in person to the address or by courier
delivery, via United Parcel Service or other nationally recognized overnight air courier service,
or by depositing same in the United States mail, postage prepaid, addressed as follows:
To the District: CSUP Metropolitan District No. 1
Address:__________________
__________________
__________________
Attn: __________________
Phone: __________________
Fax: __________________
Emaill: __________________
To the City: City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Attn: __________________, City Attorney
Phone: __________________
Fax: __________________
Email: __________________
All notices, demands, requests or other communications shall be effective upon
such personal delivery or one (1) business day after being deposited with United Parcel Service
or other nationally recognized overnight air courier service or three (3) business days after
deposit in the United States mail. By giving the other party hereto at least ten (10) days written
notice thereof in accordance with the provisions hereof, each of the Parties shall have the right
from time to time to change its address.
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17. Amendment. This Agreement may be amended, modified, changed, or terminated
in whole or in part only by a written agreement duly authorized and executed by the Parties
hereto and without amendment to the Service Plan.
18. Assignment. Neither Party hereto shall assign any of its rights nor delegate any of
its duties hereunder to any person or entity without having first obtained the prior written consent
of the other Party, which consent will not be unreasonably withheld. Any purported assignment
or delegation in violation of the provisions hereof shall be void and ineffectual.
19. Default/Remedies. In the event of a breach or default of this Agreement by any
Party, the non-defaulting Party shall be entitled to exercise all remedies available at law or in
equity, specifically including suits for specific performance and/or monetary damages. In the
event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable
attorneys' fees.
20. Governing Law and Venue. This Agreement shall be governed and construed
under the laws of the State of Colorado.
21. Inurement. Each of the terms, covenants and conditions hereof shall be binding
upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
22. Integration. This Agreement constitutes the entire agreement between the Parties
with respect to the matters addressed herein. All prior discussions and negotiations regarding the
subject matter hereof are merged herein.
23. Parties Interested Herein. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon, or to give to, any person other than the District and
the City any right, remedy, or claim under or by reason of this Agreement or any covenants,
terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions
in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive
benefit of the District and the City.
24. Severability. If any covenant, term, condition, or provision under this Agreement
shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of
such covenant, term, condition, or provision shall not affect any other provision contained
herein, the intention being that such provisions are severable.
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which shall constitute one and the same document.
26. Paragraph Headings. Paragraph headings are inserted for convenience of
reference only.
27. Defined Terms. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Service Plan.
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SIGNATURE PAGES TO INTERGOVERNMENTAL AGREEMENT
CSUP METROPOLITAN DISTRICT NO. 1
By:
President
Attest:
Secretary
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4917-3133-9831, v. 11
CITY OF PUEBLO, COLORADO
By:
HEATHER GRAHAM, Mayor
ATTEST:
___________________________________
_______________, City Clerk
APPROVED AS TO FORM:
___________________________________
__________________, City Attorney
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4917-3133-9831, v. 11
DRAFT
McGEADY BECHER CORTESE WILLIAMS P.C.
June 18, 2025
SERVICE PLAN
FOR
CSUP METROPOLITAN DISTRICT NO. 2
PUEBLO,COLORADO
Preparedby
McGEADY BECHER CORTESE WILLIAMS P.C.
th
450 E. 17 Ave., Suite 400
Denver, CO 80203-1254
Submitted: June 3, 2025
Approved: __________________
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................................1
A. Purpose and Intent....................................................................................................1
B.Need for the Districts. ..............................................................................................1
C. Objective of the City Regarding the District’s Service Plan. ..................................1
II. DEFINITIONS .....................................................................................................................2
III. BOUNDARIES ....................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ..4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES........4
A. Types of Improvements ...........................................................................................4
1. Street Improvements....................................................................................4
2. Water Improvements ....................................................................................5
3. Sanitation Improvements .............................................................................5
4. Safety Protection Improvements..................................................................5
5. Park and Recreation Improvements .............................................................5
6. Transportation Improvements......................................................................5
7. Fire Protection ..............................................................................................6
B.Other Powers. ...........................................................................................................6
1. Operations and Maintenance........................................................................6
2. Security Services ..........................................................................................6
3. Covenant Enforcement.................................................................................6
4. Phasing; Deferral .........................................................................................6
5. Service Plan Amendment.............................................................................6
6. Additional Services......................................................................................6
7. Subdistricts ...................................................................................................7
8. Special Improvement District ......................................................................7
C.Construction Standards Limitation ..........................................................................7
D. Inclusion Limitation .................................................................................................7
E. Overlap Limitation ...................................................................................................7
F. Fee Limitation..........................................................................................................7
G. Total Debt Issuance Limitation ................................................................................7
H. Privately Placed Debt Limitation .............................................................................8
I. Bankruptcy Limitation.............................................................................................8
J. Intergovernmental Agreements ................................................................................8
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS. ........................................................9
VII.FINANCIAL PLAN.............................................................................................................9
A. General. ....................................................................................................................9
B.Maximum Voted Interest Rate and Maximum Underwriting Discount..................9
C. Maximum Debt Mill Levy. ....................................................................................10
D.Maximum Debt Mill Levy Imposition Term.........................................................10
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4936-1153-5439, v. 1
E. Debt Repayment Sources. ......................................................................................11
F.Security for Debt....................................................................................................11
G. Debt Instrument Disclosure Requirement ..............................................................11
H. District’s Operating Costs. .....................................................................................11
VIII. ANNUAL REPORT ..........................................................................................................12
A. General. ..................................................................................................................12
B. Reporting of Significant Events. ............................................................................12
IX. DISSOLUTION .................................................................................................................13
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT ........................................13
XI. CONCLUSION ..................................................................................................................13
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LIST OF EXHIBITS
EXHIBIT A-1 Initial District Boundary Legal Description
EXHIBIT A-2 Inclusion Area Boundary Legal Description
EXHIBIT B Vicinity Map
EXHIBIT C-1 Initial District Boundary Map
EXHIBIT C-2 Inclusion Area Boundary Map
EXHIBIT D Service Plan Intergovernmental Agreement with the City of Pueblo
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I.INTRODUCTION
A.Purpose and Intent.
CSU Pueblo Development Project is a residential/commercial/mixed-use
development (the “Project”) in Pueblo, Colorado (the “City”). The Project comprises
approximately One Hundred Sixteen(116) acres. The Project is currently owned by and to be
developed by __________ (the “Developer”).
CSUP Metropolitan District No. 2 (the “District”) is an independent unit 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, its activities are subject to review by theCityonly insofar
as they may deviate in a material matter from the requirements of the Service Plan. It is intended
that the District will provide a part or all of the Public Improvements(defined below) for the use
and benefit of all anticipated inhabitants and taxpayers of the District. The primary purposes of
the District will be to finance the construction of these Public Improvements and provide
ongoing operation and maintenance services as more specifically set forth in this Service Plan.
The District is being organized concurrently with the organization of District No.
1 and District No. 3. The multiple district structure is anticipated to provide flexibility to finance
and operate and maintain the public improvements needed to serve several different types of
future property uses, such as residential, commercial, and mixed-use property. Under the
multiple district structure, it is anticipated that the Districts, collectively, will undertake the
financing and construction of the improvements contemplated in this Service Plan. Specifically,
the Districts shall enter into an Intergovernmental Agreement related to debt service matters,
which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
B. Need for the Districts.
There are currently no other governmental entities, including theCity, located in
the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake
theplanning, design, acquisition, construction, installation,relocation,redevelopment, financing,
operation and maintenance of the Public Improvements needed for the Project. Formation of the
Districts is therefore necessary in order for the Public Improvements required for the Project to
be provided in the most economic manner possible.
C.Objective of theCityRegarding the District’s Service Plan.
The City’s objective in approving the Service Plan is to authorize the District to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment and financing of the Public Improvements from the proceeds of Debt to be issued
by the Districts and other legally available revenues of the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy
Imposition Term for residential properties and at a mill levy no higher than the Maximum Debt
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Mill Levy andFeesand any other legally available revenue. Debt which is issued within these
parameters and, as further described in the Financial Plan, will insulate property owners from
excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and
reasonable discharge of the Debt.
The primary purpose of the Districts is to provide for the Public Improvements
associated with development and, if applicable, regional needs, and operate and maintain Public
Improvements not accepted by the City, other appropriate jurisdiction or an owners’ association.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan, subdivision improvement
agreement or other document approved by the Citythat, among other things, identifies
Public Improvements necessary for facilitating development for property within the
Service Area.
Board: means the board of directors of the District.
Bond, Bonds or Debt: means bonds or other obligations for the payment of which the
District has promised to impose an ad valorem property tax mill levy, or impose and
collect Fee revenue.
City Council: means the City Council of the City of Pueblo, Colorado.
District No. 1: means CSUP Metropolitan District No. 1.
District No. 2: means CSUP Metropolitan District No. 2.
District No. 3: means CSUP Metropolitan District No. 3.
Districts: means District No. 1, District No. 2, and District No. 3 collectively.
End User:means any owner, or tenant of any owner, of any taxable improvement within
the Districts who is intended to become burdened by the imposition of ad valorem
property taxes subject to the Maximum Debt Mill Levy. By way of illustration, a
resident homeowner, renter, commercial property owner, or commercial tenant is an End
User. The business entity that constructs homes or commercial structures is not an End
User.
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
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employee of the District and has not been otherwise engaged to provide services in
connection with the transaction related to the applicable Debt.
Fees: means any fee imposed and/or received by the District for services, programs, or
facilities provided by the District.
Financial Plan: means the Financial Plan described in SectionVII which describes
(i) how the Public Improvements are to be financed; (ii) how the Debt is expected to be
incurred; and (iii) the estimated operating revenue derived from property taxes for the
first budget year.
Inclusion Area Boundaries: means the boundaries of the area legally described in
Exhibit A-2 and depicted on the Inclusion Area Boundary Map.
Inclusion Area Boundary Map: means the map attached hereto as ExhibitC-2, depicting
the property proposed for inclusion within the District.
Initial District Boundaries: means the boundaries of the area legally described in Exhibit
A-1 and depicted on the Initial District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C-1, depicting
the District’s initial boundaries.
Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to
impose for payment of Debt as set forth in Section VII.Cbelow.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy on a particular property developed for residential uses as set forth in Section
VII.D below
Project: means the CSU Pueblo Development Project.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed as
generally described in the Special District Act, except as specifically limited in SectionV
below to serve the future taxpayers and inhabitants of the Service Area as determined by
the Board.
Service Area: means, collectively,the property within the Initial District Boundaries and
the Inclusion Area Boundaries.
Service Plan: means this service plan for the District approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved by the
City in accordance with applicable law.
Special District Act: means Section 32-1-101, et seq., of the Colorado Revised Statutes,
as amended from time to time.
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State: means the State of Colorado.
Taxable Property: means real property subject to ad valorem taxes imposed by the
District.
Total Debt Issuance Limit: means the maximum amount of general obligation Debt the
Districts, in aggregate, may issue, which amount shall be Twenty-One Million Dollars
($21,000,000).
III. BOUNDARIES
The Initial District Boundaries includeapproximatelysevenhundredths(0.07) acres,and
the total area proposed to be in the Inclusion Area Boundaries is approximately One Hundred
Sixteen (116) acres. Legal descriptions of the Initial District Boundaries and the Inclusion Area
Boundaries are attached hereto as Exhibit A-1 and Exhibit A-2, respectively. A vicinity map is
attached hereto as Exhibit B. A map of the Initial District Boundaries is attached hereto as
Exhibit C-1, and a map of the Inclusion Area Boundaries is attached hereto as Exhibit C-2. It is
anticipated that the District’s boundaries may change from time to time as it undergoes
inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501,
et seq., C.R.S., subject to the limitations set forth in ArticleV below.
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
The Service Area consists of approximately One Hundred Sixteen(116) acres) acres of
land of residential, commercial,and mixed-use property. The current assessed valuation of the
Service Area is $0.00 for purposes of this Service Plan and, at build out, is expected to be
sufficient to reasonably discharge the Debt under the Financial Plan. The population of the
Districts at build-out is estimated to be approximately eight hundred twenty (820) people.
Approval of this Service Plan by the City does not imply approval of the development of
a specific area within the District, nor does it imply approval of the number of residential units or
the total site/floor area of commercial or industrial buildings identified in this Service Plan or
any of the exhibits attached thereto, unless the same is contained within an Approved
Development Plan.
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A. Types of Improvements.The District shall have the power and authority to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment, financing, operation, and maintenance of Public Improvements,within and
without the boundaries of the District,as such power and authority is described in the Special
District Act, and other applicable statutes, common law, and the Constitution. Without limiting
the foregoing, following is a general description of the types of Public Improvements and
services the District shall be authorized to provide.
1. Street Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate,and maintain street and
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4936-1153-5439, v. 1
roadway improvements including, but not limited to, related landscaping, curbs, gutters,
sidewalks, culverts,and other drainage facilities, pedestrian ways, bridges, overpasses,
interchanges, signage, median islands, alleys, parking facilities, paving, lighting, grading and
irrigation structures, together with all necessary, incidental and appurtenant facilities, land and
easements, and all extensions of and improvements to said facilities. It is anticipated that street
improvements not accepted by the City or other appropriate jurisdiction or an owners’
association will be owned and maintained by the District.
2. Water Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate and maintain potable, non-
potable, and irrigation water systems including, but not limited to, transmission lines, distribution
mains and laterals, storage and treatment facilities, water right acquisition, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities. It is anticipated that water improvements not accepted by the
City or other appropriate jurisdiction or an owners’ association will be owned and maintained by
the District.
3. Sanitation Improvements. The District shall have the power and authority
to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain sanitation
improvements including, but not limited to, sanitary sewer transmission lines, wastewater
treatment, storm drainage, detention/retention ponds, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that sanitation improvements not accepted by the City or other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
4. Safety Protection Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
traffic and safety controls and devices on streets, highways and railroad crossings including, but
not limited to, signalization, signage and striping, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that safety protection improvements not accepted by the City orother
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
5. Park and Recreation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
park and recreation facilities and programs including, but not limited to, parks, pedestrian ways,
bike paths, bike storage facilities, signage, interpretive kiosks and facilities, open space,
landscaping, cultural activities, community centers, recreational centers, water bodies, wildlife
preservation and mitigation areas, irrigation facilities, playgrounds, pocket parks, swimming
pools, and other active and passive recreational facilities, together with all necessary, incidental
and appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that park and recreation improvements not accepted bythe City, other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
6.TransportationImprovements.The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain a
system to transport the public by bus, rail or any other means of conveyance, or any combination
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thereof, including, but not limited to, bus stops and shelters, park-and-ride facilities, parking
facilities, bike storage facilities, together with all necessary, incidental and appurtenant facilities,
land and easements, and all extensions of and improvements to said facilities. It is anticipated
that transportation improvements not accepted by the City or other appropriate jurisdiction or an
owners’ association will be owned and maintained by the District.
7. Fire Protection. The District shall have the power and authority to plan,
design, acquire, construct, install, relocate, redevelop and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
B.Other Powers.
1. Operations and Maintenance. The District shall be authorized to operate
and maintain Public Improvements not accepted by the City or other governmental entities
having proper jurisdiction or to an owners’ association. To the extent the District retains
ownership of any Public Improvements, the District shall be authorized to enter into one or more
agreements with owners’ associations pursuant to which such owners’ association(s) may
operate and maintain such Public Improvements.
2. Security Services. Subject to the provisions of Section 32-1-1004(7),
C.R.S., the District shall have the power to furnish security services within the Service Area.
3. Covenant Enforcement. Subject to the provisions of Section 32-1-
1004(8), C.R.S., the District shall have the power to furnish covenant enforcement and design
review services within the Service Area.
4. Phasing; Deferral. Except as may be limited herein, the District shall have
the right, without having to amend this Service Plan, to defer, delay, reschedule, re-phase or
restructure the financing and/or construction of the Public Improvements to accommodate the
pace of development within the Project, resource availability and the funding capability of the
District.
5. Service Plan Amendment. The District shall have the authority to amend
or modify this Service Plan, as needed, subject to the applicable statutory procedures.
6. Additional Services. Except as specifically provided herein, the District
shall be authorized to provide such additional services and exercise such powers as are expressly
or impliedly granted by Colorado law.
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7. Subdistricts. The District shall have the authority pursuant to Section 32-
1-1101(1)(f), C.R.S., and Sections 32-1-1101(1.5)(a)-(e), C.R.S., to divide the District into one
or more areas consistent with the services, programs and facilities to be furnished therein. The
exercise of such authority shall not be deemed a material modification of this Service Plan.
8. Special Improvement District. The District shall have the authority
pursuant to Section 32-1-1101.7, C.R.S., to establish one or more special improvement districts
within the boundaries ofthe District, including the power to levy assessments.
C.Construction Standards Limitation. The District will ensure that the Public
Improvements are designed and constructed in accordance with the applicable standards and
specifications of the City and of other governmental entities having proper jurisdiction.
D. Inclusion Limitation. The District shall have the authority to include within its
boundaries any property withinthe Service Area without the prior written consent of the City.
The District shall not include within any of its boundaries any property outside the Service Area
without the prior written consent of the City except upon petition of the fee owner or owners of
100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
E. Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill
Levy of the Districts.
F. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, or for operations and maintenance. No Fee related
to the funding of costs of a capital nature shall be authorized to be imposed upon or collected
from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the restrictions in this
definition shall not apply to any Fee imposed upon or collected from Taxable Property for the
purpose of funding operation and maintenance costs of the Districts.
G. Total Debt Issuance Limitation. The Districts shall not issue Debt in excess of the
Total Debt Issuance Limit; provided, however, any refunding Debt shall not count against the
Total Debt Issuance Limit. Any Debt, issued with a pledge or which results in a pledge, that
exceeds the Maximum Debt Mill Levy shall be deemed a material modification of this Service
Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless
and until such material modification has been approved by the City as part of a Service Plan
Amendment.
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H. Privately Placed Debt Limitation. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
I. Bankruptcy Limitation. All of the limitations contained in this Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt
Mill Levy Imposition Term and the Fees have been established under the authority of the City to
approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly
intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the “political or governmental powers” reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C. Section 903, and are also included in the “regulatory or electoral
approval necessary under applicable nonbankruptcy law” as required for confirmation of a
Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum
Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material
modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an
authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
J. Intergovernmental Agreements. The District shall have the authority to enter into
such intergovernmental agreements as may be necessary or appropriate to perform the functions
for which the District has been organized, including the provision of Public Improvements
required by any Approved Development Plan. It is anticipated that the Districts, collectively,
will undertake the financing and construction of the improvements contemplated in this Service
Plan. Specifically, the Districts shall enter into an Intergovernmental Agreementrelated to debt
service matters, which shall govern the relationships between and among the Districts with
respect to the financing, installation and construction the improvements contemplated herein.
Each individual District shall have the responsibility to coordinate the operation and maintenance
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of improvements within its boundaries, including the decision on what mill levy to impose for
the provision of operation and maintenance services to its taxpayers and service users.
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS.
An estimate of the costs of the Public Improvements which may be planned for,
designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed was
prepared based upon a preliminary engineering survey and estimates derived from the zoning on
the property in the Service Area and is approximately Eleven Million SevenHundred Fifteen
Thousand FiveHundred Thirty Dollars ($11,715,530) in 2025dollars. All construction cost
estimates are based on the assumption that construction conforms to applicable local, State or
Federal requirements. Actual Public Improvements to be constructed and their costs may vary,
and the Board shall have the discretion to construct any Public Improvements authorized in an
Approved Development Plan and the actual costs may increase or decrease as development
occurs without the necessity of amending this Service Plan.
VII. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation and/or redevelopment of the Public Improvements from its
revenues and by and through the proceeds of Debt to be issued by the District. The Financial
Plan for the District shall be to issue such Debt as the District can reasonably pay from revenues
derived within the Maximum Debt Mill Levy Imposition Term and from the Maximum Debt
Mill Levy, Fees and other legally available revenues. The total Debt that the Districts shall be
permitted to issue shall not exceed the Total Debt Issuance Limit and shall be permitted to be
issued on a schedule and in such year or years as the District determines shall meet the needs of
the Financial Plan referenced above and phased to serve development as it occurs. All bonds and
other Debt issued by the District may be payable from any and all legally available revenues of
the District, including, but not limited to, general ad valorem taxes to be imposed upon all
Taxable Property of the District (and associated specific ownership tax revenues) and Fees. The
District will also 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 to time, and to receive revenue from privately imposed public
improvement fees, if applicable and revenue received through agreements with other
governmental entities.
Prior to the issuance of Debt, it is anticipated that the Developer may advance
funds to the District to pay the organizational costs of the District and costs for constructing and
installing Public Improvements. The District shall be authorized to reimburse such Developer
advances with interest from Debt proceeds or other legally available revenues.
B.Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. In the event of a default, the proposed maximum interest rate on any Debt is not
expected to exceed fifteen percent (15%). The proposed maximum underwriting discount will be
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three percent (3%). Debt, when issued, will comply with all relevant requirements of this
Service Plan, State law and Federal law as then applicable to the issuance of public securities.
C.Maximum Debt Mill Levy.
The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is
permitted to impose upon the Taxable Property of the District for payment of Debt, and shall be
determined as follows:
1. For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 below; provided that if, on or after January 1, 2004, 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
decreased to reflect such changes, such increases or decreases to be determined by the Board in
good faith (such determination to be binding and final) so that to the extent possible, the actual
tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004,
are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing,
a change in the ratio of actual valuation shall be deemed to be a change in the method of
calculating assessed valuation.
2. For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the debt service on such Debt, without limitation of rate.
3. For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 above, so that the District is entitled to pledge to its payment an unlimited ad
valorem mill levy, the District may provide that such Debt shall remain secured by such
unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to assessed
ratio. All Debt issued by the District must be issued in compliance with the requirements of
Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized
into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as
used herein shall be deemed to refer to the District and to each such subdistrict separately, so that
each of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
D. Maximum Debt Mill Levy Imposition Term.
The District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levy for repayment of Debt) on any single property developed for
residential uses which exceeds forty (40) years after the year of the initial imposition of such mill
levy unless a majority of the Board of Directors of the District are residents of the District and
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have voted in favor of 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.; etseq.
E. Debt Repayment Sources.
The District may impose a mill levy as a primary source of revenue for repayment
of debt service and for operations and maintenance. The District may also rely upon various
other revenue sources authorized by law. At the District’s discretion, these may include the
power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(l),
C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District
exceed the Maximum Debt Mill Levy, except as provided in Section VII.C.2 above or, for
residential property within the District, the Maximum Debt Mill Levy Imposition Term.
F. Security for Debt.
The District 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 District’s obligations; nor shall
anything in the Service Plan be construed so as to create any responsibility or liability on the part
of the City in the event of default by the District in the payment of any such obligation.
G. Debt Instrument Disclosure Requirement. In the text of each Bond and any other
instrument representing and constituting Debt, the District shall set forth a statement in
substantially the following form:
By acceptance of this instrument, the owner of this Bond agrees
and consents to all of the limitations in respect of the payment of
the principal of and interest on this Bond contained herein, in the
resolution of the District authorizing the issuance of this Bond and
in the Service Plan for creation of 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.
H. District’s Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the District’s organization and initial
operations, are anticipated to be Seventy-Five Thousand Dollars ($75,000), which will be
eligible for reimbursement from Debt proceeds.
In addition to the capital costs of the Public Improvements, the District will
require operating funds for administration and to plan and cause the Public Improvements to be
constructed and maintained. The first year’s operating budget is estimated to be Fifty Thousand
Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues.
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The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the
District’s ability to increase its mill levy as necessary for provision of operation and maintenance
services to its taxpayers and service users. It is anticipated that the Developer will advance funds
to the District to pay its operating costs until such time as the District has sufficient revenue from
its operation and maintenance mill levy. The District shall be authorized to reimburse the
Developer for such advances with interest.
VIII. ANNUAL REPORT
A.General.
The District shall be responsible for submitting an annual report to the City no
later than August 1st of each year following the year in which the Order and Decree creating the
District has been issued.
B.Reporting of Significant Events.
The annual report shall include information as to any of the following:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the prior year.
2. Intergovernmental Agreements either entered into or proposed as of
December 31 of the prior year.
3. A summary of any litigation which involves the District Public
Improvements as of December 31 of the prior year.
4. Status of the District’s construction of the Public Improvements as of
December 31 of the prior year.
5. A list of all facilities and improvements constructed by the District that
have been dedicated to and accepted by the City as of December 31 of the prior year.
6. The assessed valuation of the District for the current year.
7. Current year budget.
8. Audit of the District’s financial statements, for the year ending December
31 of the previous year, prepared in accordance with generally accepted accounting principles or
audit exemption, if applicable.
9. Notice of any uncured events of default by the District, which continue
beyond a ninety (90) day period, under any Debt instrument.
10. Any inability of the District to pay its obligations as they come due, in
accordance with the terms of such obligations, which continue beyond a ninety (90) day period.
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IX. DISSOLUTION
In no event shall the District be dissolveduntil the District has provided for the payment
or discharge of all of their outstanding indebtedness and other financial obligations as required
pursuant to State statutes.
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT
The form of the service plan intergovernmental agreement required by the City, relating
to the limitations imposed on the District’s activities, is attached hereto as Exhibit D. The
District shall approve the intergovernmental agreement in the form attached as Exhibit D at its
first Board meeting after its organizational election. Failure of the District to execute the
intergovernmental agreement as required herein shall constitute a material modification and shall
require a Service Plan Amendment. The City Council shall approve the intergovernmental
agreement in the form attached as Exhibit D at the public hearing approving the Service Plan.
XI. CONCLUSION
It is submitted that this Service Plan for the District, as required by Section 32-1-203(2),
C.R.S., establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2. The existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries;
4. The area to be included in the District does have, and will have, the
financial ability to discharge the proposed indebtedness on a reasonable basis;
5. Adequate service is not, and will not be, available to the area through the
City/Town/County or other existing municipal or quasi-municipal corporations, including
existing special districts, within a reasonable time and on a comparable basis;
6. The facility and service standards of the District are compatible with the
facility and service standards of the City within which the special district is to be located and
each municipality which is an interested party under Section 32-1-204(1), C.R.S;
7. The proposal is in substantial compliance with a comprehensive plan
adopted by the City;
8. The proposal is in compliance with any duly adopted City, regional or
state long-range water quality management plan for the area; and
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9. The creation of the District is in the best interests of the area proposed to
be served.
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EXHIBIT A-1
Initial District Boundary Legal Description
A-1-1
EXHIBIT A-2
Inclusion Area Boundary Legal Description
A-2-1
EXHIBIT B
Vicinity Map
B-1
EXHIBIT C-1
Initial District Boundary Map
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EXHIBIT C-2
Inclusion Area Boundary Map
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4936-1153-5439, v. 1
EXHIBIT D
SERVICE PLAN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF PUEBLO, COLORADO
AND
CSUP METROPOLITAN DISTRICT NO. 2
THIS SERVICE PLAN INTERGOVERNMENTAL AGREEMENT is made and
entered into as of this ____ day of ___________, ___________, by and between the CITY OF
PUEBLO, a home-rule municipal corporation of the State of Colorado (“City”), and CSUP
METROPOLITAN DISTRICT NO. 2, a quasi-municipal corporation and political subdivision
of the State of Colorado (the “District”). The City and the District are collectively referred to as
the Parties.
RECITALS
WHEREAS, the District was organized to provide those services and to exercise powers
as are more specifically set forth in the District’s Service Plan approved by the City on
__________________ (“Service Plan”); and
WHEREAS, the Service Plan makes reference to the execution of an intergovernmental
agreement between the City and the District; and
WHEREAS, the City and the District have determined it to be in the best interests of their
respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Operations and Maintenance. The Districts shall dedicate the Public
Improvements (as defined in the Service Plan) to the City or other appropriate jurisdiction or
owner’s association in a manner consistent with the Approved Development Plan and other rules
and regulations of the City and applicable provisions of the City Code. The Districts shall be
authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise
required to be dedicated to the City or other public entity, including, but not limited to street
improvements (including roads, curbs, gutters, culverts, sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements), traffic and safety
controls, retaining walls, park and recreation improvements and facilities, trails, open space,
landscaping, drainage improvements (including detention and retention ponds, trickle channels,
and other drainage facilities), irrigation system improvements (including wells, pumps, storage
facilities, and distribution facilities), and all necessary equipment and appurtenances incident
thereto.
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2. Fire Protection. The District shall have the power and authority to plan, design,
acquire, construct, install, relocate, redevelop,and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
3. Construction Standards. The District will ensure that the Public Improvements
are designed and constructed in accordance with the standards and specifications of the City and
of other governmental entities having proper jurisdiction and of those special districts that
qualify as “interested parties” under Section 32-1-204(1), C.R.S., as applicable. The District will
obtain the City’s approval of civil engineering plans and will obtain applicable permits for
construction and installation of Public Improvements prior to performing such work.
4. Issuance of Privately Placed Debt. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
5. Inclusion Limitation. The Districts shall not include within any of their
boundaries any property outside the Service Area without the prior written consent of the City.
The Districts shall not include within any of its boundaries any property inside the inclusion area
boundaries without the prior written consent of the City except upon petition of the fee owner or
owners of 100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
6.Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
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payment of Debt of such proposed districts will not any time exceed the Maximum Debt Mill
Levy of the Districts.
7. Initial Debt. On or before the effective date of approval by the City of an
Approved Development Plan (as defined in the Service Plan), the District shall not: (a) issue any
Debt; nor (b) impose a mill levy for the payment of Debt by direct imposition or by transfer of
funds from the operating fund to the Debt service funds; nor (c) impose and collect any fees used
for the purpose of repayment of Debt.
8. Total Debt Issuance. The Districts shall not issue Debt in excess Twenty-One
Million Dollars ($21,000,000) in the aggregate.
9. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, and/or for operations and maintenance. No Fee
related to the funding of costs of a capital nature shall be authorized to be imposed upon or
collected from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the
restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable
Property for the purpose of funding operation and maintenance costs of the Districts.
10. Bankruptcy. All of the limitations contained in the Service Plan, including, but
not limited to, those pertaining to the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term have been established under the authority of the City to approve a Service
Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such
limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law, included in the
“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11
U.S.C. Section 903), and are also included in the “regulatory or electoral approval necessary
under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy
Plan under Bankruptcy Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the
Maximum Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed
a material modification of the Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be
an authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
11. Service Plan Amendment Requirement. Actions of the District which violate the
limitations set forth in Sections V.A.1-9 or VII.B-G of the Service Plan shall be deemed to be
material modifications to the Service Plan and the City shall be entitled to all remedies available
under State and local law to enjoin such actions of the District.
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12. Multiple District Structure. It is anticipated that the Districts, collectively, will
undertake the financing and construction of the improvements contemplated herein.
Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt service
matters, which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
13. Annual Report. The District shall be responsible for submitting an annual report
to the City Manager no later than August 1st of each year following the year in which the Order
and Decree creating the District has been issued, pursuant to the City Code and containing the
information set forth in Section VIII of the Service Plan.
14. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the
maximum mill levy the District is permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows:
(a) For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 of the Service Plan; provided that if, on or after
January 1, 2004, 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 decreased to reflect such changes, such increases or decreases to be
determined by the Board in good faith (such determination to be binding and final) so that to the
extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes
occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes.
For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a
change in the method of calculating assessed valuation.
(b) For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the Debt service on such Debt, without limitation of rate.
(c) For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 of the Service Plan, so that the District is entitled to pledge to its payment an
unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by
such unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to
assessed ratio. All Debt issued by the District must be issued in compliance with the
requirements of Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
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of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
The Maximum Debt Mill Levy shall not apply to the District’s Operations and
Maintenance Mill Levy for the provision of operation and maintenance services to the District’s
taxpayers and service users.
15. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy
for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt)
on any single property developed for residential uses which exceeds forty (40) years after the
year of the initial imposition of such mill levy unless a majority of the Board of Directors of the
District are residents of the District and have voted in favor of 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.
16. Notices. All notices, demands, requests,or other communications to be sent by
one party to the other hereunder or required by law shall be in writing and shall be deemed to
have been validly given or served by delivery of same in person to the address or by courier
delivery, via United Parcel Service or other nationally recognized overnight air courier service,
or by depositing same in the United States mail, postage prepaid, addressed as follows:
To the District: CSUP Metropolitan District No. 2
Address:__________________
__________________
__________________
Attn: __________________
Phone: __________________
Fax: __________________
Emaill: __________________
To the City: City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Attn: __________________, City Attorney
Phone: __________________
Fax: __________________
Email: __________________
All notices, demands, requests or other communications shall be effective upon
such personal delivery or one (1) business day after being deposited with United Parcel Service
or other nationally recognized overnight air courier service or three (3) business days after
deposit in the United States mail. By giving the other party hereto at least ten (10) days written
notice thereof in accordance with the provisions hereof, each of the Parties shall have the right
from time to time to change its address.
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17. Amendment. This Agreement may be amended, modified, changed, or terminated
in whole or in part only by a written agreement duly authorized and executed by the Parties
hereto and without amendment to the Service Plan.
18. Assignment. Neither Party hereto shall assign any of its rights nor delegate any of
its duties hereunder to any person or entity without having first obtained the prior written consent
of the other Party, which consent will not be unreasonably withheld. Any purported assignment
or delegation in violation of the provisions hereof shall be void and ineffectual.
19. Default/Remedies. In the event of a breach or default of this Agreement by any
Party, the non-defaulting Party shall be entitled to exercise all remedies available at law or in
equity, specifically including suits for specific performance and/or monetary damages. In the
event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable
attorneys' fees.
20. Governing Law and Venue. This Agreement shall be governed and construed
under the laws of the State of Colorado.
21. Inurement. Each of the terms, covenants and conditions hereof shall be binding
upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
22. Integration. This Agreement constitutes the entire agreement between the Parties
with respect to the matters addressed herein. All prior discussions and negotiations regarding the
subject matter hereof are merged herein.
23. Parties Interested Herein. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon, or to give to, any person other than the District and
the City any right, remedy, or claim under or by reason of this Agreement or any covenants,
terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions
in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive
benefit of the District and the City.
24. Severability. If any covenant, term, condition, or provision under this Agreement
shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of
such covenant, term, condition, or provision shall not affect any other provision contained
herein, the intention being that such provisions are severable.
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which shall constitute one and the same document.
26. Paragraph Headings. Paragraph headings are inserted for convenience of
reference only.
27. Defined Terms. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Service Plan.
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SIGNATURE PAGES TO INTERGOVERNMENTAL AGREEMENT
CSUP METROPOLITAN DISTRICT NO. 2
By:
President
Attest:
Secretary
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CITY OF PUEBLO, COLORADO
By:
HEATHER GRAHAM, Mayor
ATTEST:
___________________________________
_______________, City Clerk
APPROVED AS TO FORM:
___________________________________
__________________, City Attorney
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DRAFT
McGEADY BECHER CORTESE WILLIAMS P.C.
June 18, 2025
SERVICE PLAN
FOR
CSUP METROPOLITAN DISTRICT NO. 3
PUEBLO,COLORADO
Preparedby
McGEADY BECHER CORTESE WILLIAMS P.C.
th
450 E. 17 Ave., Suite 400
Denver, CO 80203-1254
Submitted: June 3, 2025
Approved: __________________
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................................1
A. Purpose and Intent....................................................................................................1
B.Need for the Districts. ..............................................................................................1
C. Objective of the City Regarding the District’s Service Plan. ..................................1
II. DEFINITIONS .....................................................................................................................2
III. BOUNDARIES ....................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ..4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES........4
A. Types of Improvements ...........................................................................................4
1. Street Improvements....................................................................................4
2. Water Improvements ....................................................................................5
3. Sanitation Improvements .............................................................................5
4. Safety Protection Improvements..................................................................5
5. Park and Recreation Improvements .............................................................5
6. Transportation Improvements......................................................................5
7. Fire Protection ..............................................................................................6
B.Other Powers. ...........................................................................................................6
1. Operations and Maintenance........................................................................6
2. Security Services ..........................................................................................6
3. Covenant Enforcement.................................................................................6
4. Phasing; Deferral .........................................................................................6
5. Service Plan Amendment.............................................................................6
6. Additional Services......................................................................................6
7. Subdistricts ...................................................................................................7
8. Special Improvement District ......................................................................7
C.Construction Standards Limitation ..........................................................................7
D. Inclusion Limitation .................................................................................................7
E. Overlap Limitation ...................................................................................................7
F. Fee Limitation..........................................................................................................7
G. Total Debt Issuance Limitation ................................................................................7
H. Privately Placed Debt Limitation .............................................................................8
I. Bankruptcy Limitation.............................................................................................8
J. Intergovernmental Agreements ................................................................................8
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS. ........................................................9
VII.FINANCIAL PLAN.............................................................................................................9
A. General. ....................................................................................................................9
B.Maximum Voted Interest Rate and Maximum Underwriting Discount..................9
C. Maximum Debt Mill Levy. ....................................................................................10
D.Maximum Debt Mill Levy Imposition Term.........................................................10
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E. Debt Repayment Sources. ......................................................................................11
F.Security for Debt....................................................................................................11
G. Debt Instrument Disclosure Requirement ..............................................................11
H. District’s Operating Costs. .....................................................................................11
VIII. ANNUAL REPORT ..........................................................................................................12
A. General. ..................................................................................................................12
B. Reporting of Significant Events. ............................................................................12
IX. DISSOLUTION .................................................................................................................13
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT ........................................13
XI. CONCLUSION ..................................................................................................................13
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LIST OF EXHIBITS
EXHIBIT A-1 Initial District Boundary Legal Description
EXHIBIT A-2 Inclusion Area Boundary Legal Description
EXHIBIT B Vicinity Map
EXHIBIT C-1 Initial District Boundary Map
EXHIBIT C-2 Inclusion Area Boundary Map
EXHIBIT D Service Plan Intergovernmental Agreement with the City of Pueblo
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I.INTRODUCTION
A.Purpose and Intent.
CSU Pueblo Development Project is a residential/commercial/mixed-use
development (the “Project”) in Pueblo, Colorado (the “City”). The Project comprises
approximately One Hundred Sixteen(116) acres. The Project is currently owned by and to be
developed by __________ (the “Developer”).
CSUP Metropolitan District No. 3 (the “District”) is an independent unit 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, its activities are subject to review by theCityonly insofar
as they may deviate in a material matter from the requirements of the Service Plan. It is intended
that the District will provide a part or all of the Public Improvements(defined below) for the use
and benefit of all anticipated inhabitants and taxpayers of the District. The primary purposes of
the District will be to finance the construction of these Public Improvements and provide
ongoing operation and maintenance services as more specifically set forth in this Service Plan.
The District is being organized concurrently with the organization of District No.
1 and District No. 2. The multiple district structure is anticipated to provide flexibility to finance
and operate and maintain the public improvements needed to serve several different types of
future property uses, such as residential, commercial, and mixed-use property. Under the
multiple district structure, it is anticipated that the Districts, collectively, will undertake the
financing and construction of the improvements contemplated in this Service Plan. Specifically,
the Districts shall enter into an Intergovernmental Agreement related to debt service matters,
which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
B. Need for the Districts.
There are currently no other governmental entities, including theCity, located in
the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake
theplanning, design, acquisition, construction, installation,relocation,redevelopment, financing,
operation and maintenance of the Public Improvements needed for the Project. Formation of the
Districts is therefore necessary in order for the Public Improvements required for the Project to
be provided in the most economic manner possible.
C.Objective of theCityRegarding the District’s Service Plan.
The City’s objective in approving the Service Plan is to authorize the District to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment and financing of the Public Improvements from the proceeds of Debt to be issued
by the Districts and other legally available revenues of the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy
Imposition Term for residential properties and at a mill levy no higher than the Maximum Debt
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Mill Levy andFeesand any other legally available revenue. Debt which is issued within these
parameters and, as further described in the Financial Plan, will insulate property owners from
excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and
reasonable discharge of the Debt.
The primary purpose of the Districts is to provide for the Public Improvements
associated with development and, if applicable, regional needs, and operate and maintain Public
Improvements not accepted by the City, other appropriate jurisdiction or an owners’ association.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan, subdivision improvement
agreement or other document approved by the Citythat, among other things, identifies
Public Improvements necessary for facilitating development for property within the
Service Area.
Board: means the board of directors of the District.
Bond, Bonds or Debt: means bonds or other obligations for the payment of which the
District has promised to impose an ad valorem property tax mill levy, or impose and
collect Fee revenue.
City Council: means the City Council of the City of Pueblo, Colorado.
District No. 1: means CSUP Metropolitan District No. 1.
District No. 2: means CSUP Metropolitan District No. 2.
District No. 3: means CSUP Metropolitan District No. 3.
Districts: means District No. 1, District No. 2, and District No. 3 collectively.
End User:means any owner, or tenant of any owner, of any taxable improvement within
the Districts who is intended to become burdened by the imposition of ad valorem
property taxes subject to the Maximum Debt Mill Levy. By way of illustration, a
resident homeowner, renter, commercial property owner, or commercial tenant is an End
User. The business entity that constructs homes or commercial structures is not an End
User.
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
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employee of the District and has not been otherwise engaged to provide services in
connection with the transaction related to the applicable Debt.
Fees: means any fee imposed and/or received by the District for services, programs, or
facilities provided by the District.
Financial Plan: means the Financial Plan described in SectionVII which describes
(i) how the Public Improvements are to be financed; (ii) how the Debt is expected to be
incurred; and (iii) the estimated operating revenue derived from property taxes for the
first budget year.
Inclusion Area Boundaries: means the boundaries of the area legally described in
Exhibit A-2 and depicted on the Inclusion Area Boundary Map.
Inclusion Area Boundary Map: means the map attached hereto as ExhibitC-2, depicting
the property proposed for inclusion within the District.
Initial District Boundaries: means the boundaries of the area legally described in Exhibit
A-1 and depicted on the Initial District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C-1, depicting
the District’s initial boundaries.
Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to
impose for payment of Debt as set forth in Section VII.Cbelow.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy on a particular property developed for residential uses as set forth in Section
VII.D below
Project: means the CSU Pueblo Development Project.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed as
generally described in the Special District Act, except as specifically limited in SectionV
below to serve the future taxpayers and inhabitants of the Service Area as determined by
the Board.
Service Area: means, collectively,the property within the Initial District Boundaries and
the Inclusion Area Boundaries.
Service Plan: means this service plan for the District approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved by the
City in accordance with applicable law.
Special District Act: means Section 32-1-101, et seq., of the Colorado Revised Statutes,
as amended from time to time.
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State: means the State of Colorado.
Taxable Property: means real property subject to ad valorem taxes imposed by the
District.
Total Debt Issuance Limit: means the maximum amount of general obligation Debt the
Districts, in aggregate, may issue, which amount shall be Twenty-One Million Dollars
($21,000,000).
III. BOUNDARIES
The Initial District Boundaries includeapproximatelyeighthundredths(0.08) acres,and
the total area proposed to be in the Inclusion Area Boundaries is approximately One Hundred
Sixteen (116) acres.Legal descriptionsof the Initial District Boundaries and the Inclusion Area
Boundaries are attached hereto as ExhibitA-1 and Exhibit A-2, respectively. A vicinity map is
attached hereto as Exhibit B. A map of the Initial District Boundaries is attached hereto as
Exhibit C-1, and a map of the Inclusion Area Boundaries is attached hereto as Exhibit C-2. It is
anticipated that the District’s boundaries may change from time to time as it undergoes
inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501,
et seq., C.R.S., subject to the limitations set forth in ArticleV below.
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
The Service Area consists of approximately One Hundred Sixteen(116) acres) acres of
land of residential, commercial,and mixed-use property. The current assessed valuation of the
Service Area is $0.00 for purposes of this Service Plan and, at build out, is expected to be
sufficient to reasonably discharge the Debt under the Financial Plan. The population of the
Districts at build-out is estimated to be approximately eight hundred twenty (820) people.
Approval of this Service Plan by the City does not imply approval of the development of
a specific area within the District, nor does it imply approval of the number of residential units or
the total site/floor area of commercial or industrial buildings identified in this Service Plan or
any of the exhibits attached thereto, unless the same is contained within an Approved
Development Plan.
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A. Types of Improvements.The District shall have the power and authority to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment, financing, operation, and maintenance of Public Improvements,within and
without the boundaries of the District,as such power and authority is described in the Special
District Act, and other applicable statutes, common law, and the Constitution. Without limiting
the foregoing, following is a general description of the types of Public Improvements and
services the District shall be authorized to provide.
1. Street Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate,and maintain street and
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4899-2801-9023, v. 1
roadway improvements including, but not limited to, related landscaping, curbs, gutters,
sidewalks, culverts,and other drainage facilities, pedestrian ways, bridges, overpasses,
interchanges, signage, median islands, alleys, parking facilities, paving, lighting, grading and
irrigation structures, together with all necessary, incidental and appurtenant facilities, land and
easements, and all extensions of and improvements to said facilities. It is anticipated that street
improvements not accepted by the City or other appropriate jurisdiction or an owners’
association will be owned and maintained by the District.
2. Water Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate and maintain potable, non-
potable, and irrigation water systems including, but not limited to, transmission lines, distribution
mains and laterals, storage and treatment facilities, water right acquisition, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities. It is anticipated that water improvements not accepted by the
City or other appropriate jurisdiction or an owners’ association will be owned and maintained by
the District.
3. Sanitation Improvements. The District shall have the power and authority
to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain sanitation
improvements including, but not limited to, sanitary sewer transmission lines, wastewater
treatment, storm drainage, detention/retention ponds, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that sanitation improvements not accepted by the City or other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
4. Safety Protection Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
traffic and safety controls and devices on streets, highways and railroad crossings including, but
not limited to, signalization, signage and striping, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that safety protection improvements not accepted by the City orother
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
5. Park and Recreation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
park and recreation facilities and programs including, but not limited to, parks, pedestrian ways,
bike paths, bike storage facilities, signage, interpretive kiosks and facilities, open space,
landscaping, cultural activities, community centers, recreational centers, water bodies, wildlife
preservation and mitigation areas, irrigation facilities, playgrounds, pocket parks, swimming
pools, and other active and passive recreational facilities, together with all necessary, incidental
and appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that park and recreation improvements not accepted bythe City, other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
6.TransportationImprovements.The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain a
system to transport the public by bus, rail or any other means of conveyance, or any combination
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thereof, including, but not limited to, bus stops and shelters, park-and-ride facilities, parking
facilities, bike storage facilities, together with all necessary, incidental and appurtenant facilities,
land and easements, and all extensions of and improvements to said facilities. It is anticipated
that transportation improvements not accepted by the City or other appropriate jurisdiction or an
owners’ association will be owned and maintained by the District.
7. Fire Protection. The District shall have the power and authority to plan,
design, acquire, construct, install, relocate, redevelop and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
B.Other Powers.
1. Operations and Maintenance. The District shall be authorized to operate
and maintain Public Improvements not accepted by the City or other governmental entities
having proper jurisdiction or to an owners’ association. To the extent the District retains
ownership of any Public Improvements, the District shall be authorized to enter into one or more
agreements with owners’ associations pursuant to which such owners’ association(s) may
operate and maintain such Public Improvements.
2. Security Services. Subject to the provisions of Section 32-1-1004(7),
C.R.S., the District shall have the power to furnish security services within the Service Area.
3. Covenant Enforcement. Subject to the provisions of Section 32-1-
1004(8), C.R.S., the District shall have the power to furnish covenant enforcement and design
review services within the Service Area.
4. Phasing; Deferral. Except as may be limited herein, the District shall have
the right, without having to amend this Service Plan, to defer, delay, reschedule, re-phase or
restructure the financing and/or construction of the Public Improvements to accommodate the
pace of development within the Project, resource availability and the funding capability of the
District.
5. Service Plan Amendment. The District shall have the authority to amend
or modify this Service Plan, as needed, subject to the applicable statutory procedures.
6. Additional Services. Except as specifically provided herein, the District
shall be authorized to provide such additional services and exercise such powers as are expressly
or impliedly granted by Colorado law.
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7. Subdistricts. The District shall have the authority pursuant to Section 32-
1-1101(1)(f), C.R.S., and Sections 32-1-1101(1.5)(a)-(e), C.R.S., to divide the District into one
or more areas consistent with the services, programs and facilities to be furnished therein. The
exercise of such authority shall not be deemed a material modification of this Service Plan.
8. Special Improvement District. The District shall have the authority
pursuant to Section 32-1-1101.7, C.R.S., to establish one or more special improvement districts
within the boundaries ofthe District, including the power to levy assessments.
C.Construction Standards Limitation. The District will ensure that the Public
Improvements are designed and constructed in accordance with the applicable standards and
specifications of the City and of other governmental entities having proper jurisdiction.
D. Inclusion Limitation. The District shall have the authority to include within its
boundaries any property withinthe Service Area without the prior written consent of the City.
The District shall not include within any of its boundaries any property outside the Service Area
without the prior written consent of the City except upon petition of the fee owner or owners of
100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
E. Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill
Levy of the Districts.
F. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, or for operations and maintenance. No Fee related
to the funding of costs of a capital nature shall be authorized to be imposed upon or collected
from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the restrictions in this
definition shall not apply to any Fee imposed upon or collected from Taxable Property for the
purpose of funding operation and maintenance costs of the Districts.
G. Total Debt Issuance Limitation. The Districts shall not issue Debt in excess of the
Total Debt Issuance Limit; provided, however, any refunding Debt shall not count against the
Total Debt Issuance Limit. Any Debt, issued with a pledge or which results in a pledge, that
exceeds the Maximum Debt Mill Levy shall be deemed a material modification of this Service
Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless
and until such material modification has been approved by the City as part of a Service Plan
Amendment.
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H. Privately Placed Debt Limitation. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
I. Bankruptcy Limitation. All of the limitations contained in this Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt
Mill Levy Imposition Term and the Fees have been established under the authority of the City to
approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly
intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the “political or governmental powers” reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C. Section 903, and are also included in the “regulatory or electoral
approval necessary under applicable nonbankruptcy law” as required for confirmation of a
Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum
Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material
modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an
authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
J. Intergovernmental Agreements. The District shall have the authority to enter into
such intergovernmental agreements as may be necessary or appropriate to perform the functions
for which the District has been organized, including the provision of Public Improvements
required by any Approved Development Plan. It is anticipated that the Districts, collectively,
will undertake the financing and construction of the improvements contemplated in this Service
Plan. Specifically, the Districts shall enter into an Intergovernmental Agreementrelated to debt
service matters, which shall govern the relationships between and among the Districts with
respect to the financing, installation and construction the improvements contemplated herein.
Each individual District shall have the responsibility to coordinate the operation and maintenance
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of improvements within its boundaries, including the decision on what mill levy to impose for
the provision of operation and maintenance services to its taxpayers and service users.
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS.
An estimate of the costs of the Public Improvements which may be planned for,
designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed was
prepared based upon a preliminary engineering survey and estimates derived from the zoning on
the property in the Service Area and is approximately Eleven Million SevenHundred Fifteen
Thousand FiveHundred Thirty Dollars ($11,715,530) in 2025dollars. All construction cost
estimates are based on the assumption that construction conforms to applicable local, State or
Federal requirements. Actual Public Improvements to be constructed and their costs may vary,
and the Board shall have the discretion to construct any Public Improvements authorized in an
Approved Development Plan and the actual costs may increase or decrease as development
occurs without the necessity of amending this Service Plan.
VII. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation and/or redevelopment of the Public Improvements from its
revenues and by and through the proceeds of Debt to be issued by the District. The Financial
Plan for the District shall be to issue such Debt as the District can reasonably pay from revenues
derived within the Maximum Debt Mill Levy Imposition Term and from the Maximum Debt
Mill Levy, Fees and other legally available revenues. The total Debt that the Districts shall be
permitted to issue shall not exceed the Total Debt Issuance Limit and shall be permitted to be
issued on a schedule and in such year or years as the District determines shall meet the needs of
the Financial Plan referenced above and phased to serve development as it occurs. All bonds and
other Debt issued by the District may be payable from any and all legally available revenues of
the District, including, but not limited to, general ad valorem taxes to be imposed upon all
Taxable Property of the District (and associated specific ownership tax revenues) and Fees. The
District will also 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 to time, and to receive revenue from privately imposed public
improvement fees, if applicable and revenue received through agreements with other
governmental entities.
Prior to the issuance of Debt, it is anticipated that the Developer may advance
funds to the District to pay the organizational costs of the District and costs for constructing and
installing Public Improvements. The District shall be authorized to reimburse such Developer
advances with interest from Debt proceeds or other legally available revenues.
B.Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. In the event of a default, the proposed maximum interest rate on any Debt is not
expected to exceed fifteen percent (15%). The proposed maximum underwriting discount will be
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three percent (3%). Debt, when issued, will comply with all relevant requirements of this
Service Plan, State law and Federal law as then applicable to the issuance of public securities.
C.Maximum Debt Mill Levy.
The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is
permitted to impose upon the Taxable Property of the District for payment of Debt, and shall be
determined as follows:
1. For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 below; provided that if, on or after January 1, 2004, 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
decreased to reflect such changes, such increases or decreases to be determined by the Board in
good faith (such determination to be binding and final) so that to the extent possible, the actual
tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004,
are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing,
a change in the ratio of actual valuation shall be deemed to be a change in the method of
calculating assessed valuation.
2. For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the debt service on such Debt, without limitation of rate.
3. For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 above, so that the District is entitled to pledge to its payment an unlimited ad
valorem mill levy, the District may provide that such Debt shall remain secured by such
unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to assessed
ratio. All Debt issued by the District must be issued in compliance with the requirements of
Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized
into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as
used herein shall be deemed to refer to the District and to each such subdistrict separately, so that
each of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
D. Maximum Debt Mill Levy Imposition Term.
The District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levy for repayment of Debt) on any single property developed for
residential uses which exceeds forty (40) years after the year of the initial imposition of such mill
levy unless a majority of the Board of Directors of the District are residents of the District and
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have voted in favor of 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.; etseq.
E. Debt Repayment Sources.
The District may impose a mill levy as a primary source of revenue for repayment
of debt service and for operations and maintenance. The District may also rely upon various
other revenue sources authorized by law. At the District’s discretion, these may include the
power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(l),
C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District
exceed the Maximum Debt Mill Levy, except as provided in Section VII.C.2 above or, for
residential property within the District, the Maximum Debt Mill Levy Imposition Term.
F. Security for Debt.
The District 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 District’s obligations; nor shall
anything in the Service Plan be construed so as to create any responsibility or liability on the part
of the City in the event of default by the District in the payment of any such obligation.
G. Debt Instrument Disclosure Requirement. In the text of each Bond and any other
instrument representing and constituting Debt, the District shall set forth a statement in
substantially the following form:
By acceptance of this instrument, the owner of this Bond agrees
and consents to all of the limitations in respect of the payment of
the principal of and interest on this Bond contained herein, in the
resolution of the District authorizing the issuance of this Bond and
in the Service Plan for creation of 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.
H. District’s Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the District’s organization and initial
operations, are anticipated to be Seventy-Five Thousand Dollars ($75,000), which will be
eligible for reimbursement from Debt proceeds.
In addition to the capital costs of the Public Improvements, the District will
require operating funds for administration and to plan and cause the Public Improvements to be
constructed and maintained. The first year’s operating budget is estimated to be Fifty Thousand
Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues.
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The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the
District’s ability to increase its mill levy as necessary for provision of operation and maintenance
services to its taxpayers and service users. It is anticipated that the Developer will advance funds
to the District to pay its operating costs until such time as the District has sufficient revenue from
its operation and maintenance mill levy. The District shall be authorized to reimburse the
Developer for such advances with interest.
VIII. ANNUAL REPORT
A.General.
The District shall be responsible for submitting an annual report to the City no
later than August 1st of each year following the year in which the Order and Decree creating the
District has been issued.
B.Reporting of Significant Events.
The annual report shall include information as to any of the following:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the prior year.
2. Intergovernmental Agreements either entered into or proposed as of
December 31 of the prior year.
3. A summary of any litigation which involves the District Public
Improvements as of December 31 of the prior year.
4. Status of the District’s construction of the Public Improvements as of
December 31 of the prior year.
5. A list of all facilities and improvements constructed by the District that
have been dedicated to and accepted by the City as of December 31 of the prior year.
6. The assessed valuation of the District for the current year.
7. Current year budget.
8. Audit of the District’s financial statements, for the year ending December
31 of the previous year, prepared in accordance with generally accepted accounting principles or
audit exemption, if applicable.
9. Notice of any uncured events of default by the District, which continue
beyond a ninety (90) day period, under any Debt instrument.
10. Any inability of the District to pay its obligations as they come due, in
accordance with the terms of such obligations, which continue beyond a ninety (90) day period.
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IX. DISSOLUTION
In no event shall the District be dissolveduntil the District has provided for the payment
or discharge of all of their outstanding indebtedness and other financial obligations as required
pursuant to State statutes.
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT
The form of the service plan intergovernmental agreement required by the City, relating
to the limitations imposed on the District’s activities, is attached hereto as Exhibit D. The
District shall approve the intergovernmental agreement in the form attached as Exhibit D at its
first Board meeting after its organizational election. Failure of the District to execute the
intergovernmental agreement as required herein shall constitute a material modification and shall
require a Service Plan Amendment. The City Council shall approve the intergovernmental
agreement in the form attached as Exhibit D at the public hearing approving the Service Plan.
XI. CONCLUSION
It is submitted that this Service Plan for the District, as required by Section 32-1-203(2),
C.R.S., establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2. The existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries;
4. The area to be included in the District does have, and will have, the
financial ability to discharge the proposed indebtedness on a reasonable basis;
5. Adequate service is not, and will not be, available to the area through the
City/Town/County or other existing municipal or quasi-municipal corporations, including
existing special districts, within a reasonable time and on a comparable basis;
6. The facility and service standards of the District are compatible with the
facility and service standards of the City within which the special district is to be located and
each municipality which is an interested party under Section 32-1-204(1), C.R.S;
7. The proposal is in substantial compliance with a comprehensive plan
adopted by the City;
8. The proposal is in compliance with any duly adopted City, regional or
state long-range water quality management plan for the area; and
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9. The creation of the District is in the best interests of the area proposed to
be served.
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EXHIBIT A-1
Initial District Boundary Legal Description
A-1-1
EXHIBIT A-2
Inclusion Area Boundary Legal Description
A-2-1
EXHIBIT B
Vicinity Map
B-1
EXHIBIT C-1
Initial District Boundary Map
C-1-1
4899-2801-9023, v. 1
EXHIBIT C-2
Inclusion Area Boundary Map
C-2-1
4899-2801-9023, v. 1
EXHIBIT D
SERVICE PLAN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF PUEBLO, COLORADO
AND
CSUP METROPOLITAN DISTRICT NO. 3
THIS SERVICE PLAN INTERGOVERNMENTAL AGREEMENT is made and
entered into as of this ____ day of ___________, ___________, by and between the CITY OF
PUEBLO, a home-rule municipal corporation of the State of Colorado (“City”), and CSUP
METROPOLITAN DISTRICT NO. 3, a quasi-municipal corporation and political subdivision
of the State of Colorado (the “District”). The City and the District are collectively referred to as
the Parties.
RECITALS
WHEREAS, the District was organized to provide those services and to exercise powers
as are more specifically set forth in the District’s Service Plan approved by the City on
__________________ (“Service Plan”); and
WHEREAS, the Service Plan makes reference to the execution of an intergovernmental
agreement between the City and the District; and
WHEREAS, the City and the District have determined it to be in the best interests of their
respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Operations and Maintenance. The Districts shall dedicate the Public
Improvements (as defined in the Service Plan) to the City or other appropriate jurisdiction or
owner’s association in a manner consistent with the Approved Development Plan and other rules
and regulations of the City and applicable provisions of the City Code. The Districts shall be
authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise
required to be dedicated to the City or other public entity, including, but not limited to street
improvements (including roads, curbs, gutters, culverts, sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements), traffic and safety
controls, retaining walls, park and recreation improvements and facilities, trails, open space,
landscaping, drainage improvements (including detention and retention ponds, trickle channels,
and other drainage facilities), irrigation system improvements (including wells, pumps, storage
facilities, and distribution facilities), and all necessary equipment and appurtenances incident
thereto.
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2. Fire Protection. The District shall have the power and authority to plan, design,
acquire, construct, install, relocate, redevelop,and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
3. Construction Standards. The District will ensure that the Public Improvements
are designed and constructed in accordance with the standards and specifications of the City and
of other governmental entities having proper jurisdiction and of those special districts that
qualify as “interested parties” under Section 32-1-204(1), C.R.S., as applicable. The District will
obtain the City’s approval of civil engineering plans and will obtain applicable permits for
construction and installation of Public Improvements prior to performing such work.
4. Issuance of Privately Placed Debt. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
5. Inclusion Limitation. The Districts shall not include within any of their
boundaries any property outside the Service Area without the prior written consent of the City.
The Districts shall not include within any of its boundaries any property inside the inclusion area
boundaries without the prior written consent of the City except upon petition of the fee owner or
owners of 100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
6.Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
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4899-2801-9023, v. 1
payment of Debt of such proposed districts will not any time exceed the Maximum Debt Mill
Levy of the Districts.
7. Initial Debt. On or before the effective date of approval by the City of an
Approved Development Plan (as defined in the Service Plan), the District shall not: (a) issue any
Debt; nor (b) impose a mill levy for the payment of Debt by direct imposition or by transfer of
funds from the operating fund to the Debt service funds; nor (c) impose and collect any fees used
for the purpose of repayment of Debt.
8. Total Debt Issuance. The Districts shall not issue Debt in excess Twenty-One
Million Dollars ($21,000,000) in the aggregate.
9. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, and/or for operations and maintenance. No Fee
related to the funding of costs of a capital nature shall be authorized to be imposed upon or
collected from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the
restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable
Property for the purpose of funding operation and maintenance costs of the Districts.
10. Bankruptcy. All of the limitations contained in the Service Plan, including, but
not limited to, those pertaining to the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term have been established under the authority of the City to approve a Service
Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such
limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law, included in the
“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11
U.S.C. Section 903), and are also included in the “regulatory or electoral approval necessary
under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy
Plan under Bankruptcy Code Section 943(b)(6).
Any Debt, issued with a pledge or which results in a pledge, that exceeds the
Maximum Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed
a material modification of the Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be
an authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
11. Service Plan Amendment Requirement. Actions of the District which violate the
limitations set forth in Sections V.A.1-9 or VII.B-G of the Service Plan shall be deemed to be
material modifications to the Service Plan and the City shall be entitled to all remedies available
under State and local law to enjoin such actions of the District.
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4899-2801-9023, v. 1
12. Multiple District Structure. It is anticipated that the Districts, collectively, will
undertake the financing and construction of the improvements contemplated herein.
Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt service
matters, which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
13. Annual Report. The District shall be responsible for submitting an annual report
to the City Manager no later than August 1st of each year following the year in which the Order
and Decree creating the District has been issued, pursuant to the City Code and containing the
information set forth in Section VIII of the Service Plan.
14. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the
maximum mill levy the District is permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows:
(a) For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 of the Service Plan; provided that if, on or after
January 1, 2004, 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 decreased to reflect such changes, such increases or decreases to be
determined by the Board in good faith (such determination to be binding and final) so that to the
extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes
occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes.
For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a
change in the method of calculating assessed valuation.
(b) For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the Debt service on such Debt, without limitation of rate.
(c) For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 of the Service Plan, so that the District is entitled to pledge to its payment an
unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by
such unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to
assessed ratio. All Debt issued by the District must be issued in compliance with the
requirements of Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
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4899-2801-9023, v. 1
of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
The Maximum Debt Mill Levy shall not apply to the District’s Operations and
Maintenance Mill Levy for the provision of operation and maintenance services to the District’s
taxpayers and service users.
15. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy
for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt)
on any single property developed for residential uses which exceeds forty (40) years after the
year of the initial imposition of such mill levy unless a majority of the Board of Directors of the
District are residents of the District and have voted in favor of 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.
16. Notices. All notices, demands, requests,or other communications to be sent by
one party to the other hereunder or required by law shall be in writing and shall be deemed to
have been validly given or served by delivery of same in person to the address or by courier
delivery, via United Parcel Service or other nationally recognized overnight air courier service,
or by depositing same in the United States mail, postage prepaid, addressed as follows:
To the District: CSUP Metropolitan District No. 3
Address:__________________
__________________
__________________
Attn: __________________
Phone: __________________
Fax: __________________
Emaill: __________________
To the City: City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Attn: __________________, City Attorney
Phone: __________________
Fax: __________________
Email: __________________
All notices, demands, requests or other communications shall be effective upon
such personal delivery or one (1) business day after being deposited with United Parcel Service
or other nationally recognized overnight air courier service or three (3) business days after
deposit in the United States mail. By giving the other party hereto at least ten (10) days written
notice thereof in accordance with the provisions hereof, each of the Parties shall have the right
from time to time to change its address.
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4899-2801-9023, v. 1
17. Amendment. This Agreement may be amended, modified, changed, or terminated
in whole or in part only by a written agreement duly authorized and executed by the Parties
hereto and without amendment to the Service Plan.
18. Assignment. Neither Party hereto shall assign any of its rights nor delegate any of
its duties hereunder to any person or entity without having first obtained the prior written consent
of the other Party, which consent will not be unreasonably withheld. Any purported assignment
or delegation in violation of the provisions hereof shall be void and ineffectual.
19. Default/Remedies. In the event of a breach or default of this Agreement by any
Party, the non-defaulting Party shall be entitled to exercise all remedies available at law or in
equity, specifically including suits for specific performance and/or monetary damages. In the
event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable
attorneys' fees.
20. Governing Law and Venue. This Agreement shall be governed and construed
under the laws of the State of Colorado.
21. Inurement. Each of the terms, covenants and conditions hereof shall be binding
upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
22. Integration. This Agreement constitutes the entire agreement between the Parties
with respect to the matters addressed herein. All prior discussions and negotiations regarding the
subject matter hereof are merged herein.
23. Parties Interested Herein. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon, or to give to, any person other than the District and
the City any right, remedy, or claim under or by reason of this Agreement or any covenants,
terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions
in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive
benefit of the District and the City.
24. Severability. If any covenant, term, condition, or provision under this Agreement
shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of
such covenant, term, condition, or provision shall not affect any other provision contained
herein, the intention being that such provisions are severable.
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which shall constitute one and the same document.
26. Paragraph Headings. Paragraph headings are inserted for convenience of
reference only.
27. Defined Terms. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Service Plan.
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4899-2801-9023, v. 1
SIGNATURE PAGES TO INTERGOVERNMENTAL AGREEMENT
CSUP METROPOLITAN DISTRICT NO. 3
By:
President
Attest:
Secretary
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4899-2801-9023, v. 1
CITY OF PUEBLO, COLORADO
By:
HEATHER GRAHAM, Mayor
ATTEST:
___________________________________
_______________, City Clerk
APPROVED AS TO FORM:
___________________________________
__________________, City Attorney
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4899-2801-9023, v. 1
NOTICE OF PUBLIC HEARING
NOTICE is hereby given pursuant to Section 32-1-204(1), C.R.S., that on Monday,
August 11, 2025, at 7:00 p.m., or as soon as possible thereafter, a public hearing will be
conducted. The hearing will be conducted at the City Council Chambers, City Hall, 1 City Hall
Place, in Pueblo, Colorado, or at such other time and place as this hearing may be continued. A
public hearing will be heard upon the application on file with the City Council of the City of
Pueblo, by the Petitioners for the proposed CSUP Metropolitan District Nos. 1, 2 and 3 (the
“Districts”), for the formation of three metropolitan districts. The affected property is generally
located south of Desert Flower Boulevard and west of Bonforte Boulevard, in the City of Pueblo,
Pueblo County, Colorado.
NOTICE IS FURTHER GIVEN that,pursuant to Sections 32-1-203(3.5) and 32-1-
204(1.5), C.R.S., the owner(s) of real property within the proposed Districts may file a request
with the City Council of the City of Pueblo, requesting that such real property be excluded from
the proposed Districts. Such request may be filed any time after the Service Plan is filed with the
City Council of the City of Pueblo, but no later than ten (10) days before the day fixed for the
hearing on said Service Plan.
Reason: Formation of three Title 32 Special Districts
Project Name: CSUP Metropolitan DistrictNos. 1, 2 and 3
Date of Application:June 3, 2025
Type of Districts: Metropolitan
Published In: Pueblo Chieftain
July 15, 2025
CERTIFICATE OF MAILING
I hereby certify that on July 15 and 16, 2025, a true and correct copy of the foregoing
Notice of Public Hearing on the proposed Service Plan for CSUPMetropolitan District Nos. 1, 2
and 3 was sent via regular mail to the person(s) and/or entities named on Exhibit A attached
hereto.
McGeady BecherCortese WilliamsP.C
By:
Paralegal
2
4918-3107-6434, v. 1
EXHIBIT A
Mailing List
A-1
4918-3107-6434, v. 1
ANIMAL SHELTER BOND COUNTY BD-DEV DISAB Olney Boone Conservation District
thth
DEBT 215 W. 10 Street 200 South 10 Street
th
Pueblo, Colorado 81003 Rocky Ford, CO 81067
215 W. 10 Street
Pueblo, Colorado 81003
COUNTY CAP EXP E.D.COUNTY CONTINGENT BOONE SHARE R & B
thth
215 W. 10 Street 215 W. 10 Street PO Box 13
Pueblo, Colorado 81003 Pueblo, Colorado 81003Boone, CO 81025
COUNTY O & E RET County Refunds/AbatementsCOUNTY SHARE R & B
ththth
215 W. 10 Street 215 W. 10 Street 215 W. 10 Street
Pueblo, Colorado 81003 Pueblo, Colorado 81003Pueblo, Colorado 81003
COUNTY ROAD & BRIDGECOUNTY SOCIAL SERV Southeastern Colorado Water
thth
215 W. 10 Street 215 W. 10 Street Conservancy District
Pueblo, Colorado 81003 Pueblo, Colorado 8100331717 E. United Ave
Pueblo, CO 81001
COUNTY WASTE DISP District R4J/Abatement Refunds South Pueblo County Conservation
th
215 W. 10 Street 601 W. Grant Ave.District
th
Pueblo, Colorado 81003 Box 218 200 S. Santa Fe Ave., 4Floor
Fowler, CO 81039 Pueblo, CO 81003
Library 2019 Ballot Float LIBRARY BOND DEBT SERVRYE SHARE R & B
100 East Abriendo Avenue 100 East Abriendo Avenue PO Box 236
Pueblo, CO 81004-4232 Pueblo, CO 81004-4232 Rye, CO 81069
Library District Lower Arkansas Valley Water S.E. Water Consv Dist
Refunds/Abatements Conservancy Refunds/Abatements
100 East Abriendo Avenue 801 Swink Ave. 31717 E. United Ave
Pueblo, CO 81004-4232 Rocky Ford, CO 81067 Pueblo, CO 81001
LOWER ARK VALLEY WATER PUEBLO SHARE R & B Fowler Rural Fire Protection
th
CONS REFUNDS/ABATE 215 W. 10 Street District
801 Swink Ave. Pueblo, Colorado 81003PO Box 91
Rocky Ford, CO 81067Fowler, CO 81039
PUEBLO COUNTYPueblo Regional Library Edison Fire Protection District
th
215 W. 10 Street 100 East Abriendo Avenue PO Box 185
Pueblo, Colorado 81003 Pueblo, CO 81004-4232 Yoder, CO 80864
SCHOOL DIST R4J BOND RED SCHOOL DIST R4J GENERAL Edison School District 54JT
601 W. Grant Ave.601 W. Grant Ave.Abatement/Refunds
Box 218 Box 218
14550 Edison Road
Fowler, CO 81039 Fowler, CO 81039 Yoder, CO 80864
SCHOOL DIST 54J BOND RED SCHOOL DIST 54J GENERAL Town of Rye
14550 Edison Road 14550 Edison Road PO Box 236
Yoder, CO 80864Yoder, CO 80864Rye, CO 81069
Turkey Creek Conservation DistrictCity of Pueblo Blende Sanitation District
th
200 S. Santa Fe Avenue, 4 FloorPO Box 1427 PO Box 1940
Pueblo, CO 81003 Pueblo, CO 81002 Pueblo, CO 81003
Pueblo Conservancy District
PUEBLO RF STATION BOND Hanover Fire Protection District
PO Box 234
29912 E US HWY 50 13325 Old Pueblo Rd
111 East Fifth St.
Pueblo, CO 81006 Fountain, CO 80817
Pueblo, CO 81002
PUEBLO RF TRUCK BOND PUEBLO RURAL FIRE GENWest Park Fire Protection District
29912 E US HWY 50 29912 E US HWY 50 3926 Goodnight Avenue
Pueblo, CO 81006 Pueblo, CO 81006 Pueblo, CO 81005
PUEBLO RURAL FIRE RET PUEBLO WEST BOND Pine Drive Water District
29912 E US HWY 50 PO Box 7005 8435 Highway 78W
Pueblo, CO 81006 Pueblo West, CO 81007 Beulah, CO 81023-0035
PUEBLO WEST METRO Pueblo West Metro Rye Fire Protection District
PO Box 7005 Refunds/Abatements PO Box 19190
Pueblo West, CO 81007 PO Box 7005 Colorado City, CO 81019
Pueblo West, CO 81007
Colorado City Cemetery DistrictColorado City Metropolitan District Salt Creek Sanitation District
PO Box 19801 PO Box 20229 1421 Laredo Street
Colorado City, CO 81019 Colorado City, CO 81019 Pueblo, CO 81006
Colorado Cemetery Capital Andiamo Metropolitan District SCHOOL DIST 60
Expenditures 1700 Lincoln Street, Suite 2000 ABATEMENT/REFUNDS
th
PO Box 19801 c/o Spencer Fane, LLP 315 W. 11 Street
Colorado City, CO 81019 Denver, CO 80203-4554 Pueblo, CO 81003
4909-3141-3589, v. 1
Bandera Boulevard Special Improvement
Avondale Water & Sanitation District
SCHOOL DIST 60 GENERAL
th
Maintenance District
PO Box 188
315 W. 11 Street
PO Box 1427
Avondale, CO 81022
Pueblo, CO 81003
c/o City of Pueblo
Pueblo, CO 81002
Beulah Fire Protection and Ambulance
Beulah Water Works District SCHOOL DIST 60 BOND RED
th
District
PO Box 826 315 W. 11 Street
PO Box 826
c/o Mullans, Piersel, Reed Pueblo, CO 81003
c/o Mullans, Piersel, Reed
Beulah, CO 81023
Beulah, CO 81023
ThunderVillage Metropolitan District
SCHOOL DIST 70 BOND RED SCHOOL DIST 70 GENERAL
2154 E. Commons Avenue, Ste 2000
24951 East US Highway 50 24951 East US Highway 50
c/o White Bear Ankele Tanaka & Waldron
Pueblo, CO 81006 Pueblo, CO 81006
Centennial, CO 80122
School District 70 Refunds and
70 INSURANCE RESERVE Town of Boone
Abatements
24951 East US Highway 50 PO Box 13
24951 East US Highway 50
Pueblo, CO 81006 Boone, CO 81025
Pueblo, CO 81006
Wildhorse Metropolitan District Nos. 1-5
St. Charles Mesa Sanitation DistrictSt. Charles Mesa Water District
1700 Lincoln Street, Suite 2000
P.O. Box 403 1397 Aspen Road
c/o Spencer Fane, LLP
Pueblo, CO 81002 Pueblo, CO 81006-1633
Denver, CO 80203-4554
Villa Bella Metropolitan District Nos. 1-3Villa Bella Metropolitan District Nos. 1-3
BEULAH FIRE & AMBULANCE
Contractual Obligations 1700 Lincoln Street, Suite 2000
BOND
1700 Lincoln Street, Suite 2000 c/o Spencer Fane, LLP
PO Box 826
c/o Spencer Fane, LLP Denver, CO 80203-4554
c/o Mullans, Piersel, Reed
Denver, CO 80203-4554
Beulah, CO 81023
Southpointe Special Improvement North Vista Highlands Metro District No.3
North Vista Highlands Metropolitan
Maintenance DistrictBonds and Interest
District No. 1
230 S. Mechanic St. 2619 Canton Court
2619 Canton Court
c/o City of Pueblo c/o Centennial Consulting Group, LLC
c/o Centennial Consulting Group, LLC
Pueblo, CO 81003 Fort Collins, CO 80525
Fort Collins, CO 80525
Pastora Ranch Metropolitan District Nos. Pikes Peak Park Metropolitan District Nos. Colorado State Land Board,
1-3 1-5 Attn: Johnna Doyle Deputy General
2154 East Commons Avenue, Suite 2000 2154 East Commons Avenue, Suite 2000
Counsel
c/o White Bear Ankele Tanaka & c/o White Bear Ankele Tanaka & 2200 Bonforte Blvd
Waldron, P.C. Waldron, P.C. Pueblo, CO 81001-4901
Centennial, CO 80122-1880 Centennial, CO 80122-1880
Division of Local Government City of Pueblo
1313 Sherman St., Suite 521 City Council
Denver, CO 80203 1 City Hall Place
Pueblo, CO 81003
4909-3141-3589, v. 1
SERVICE PLAN
FOR
CSUPMETROPOLITAN DISTRICTNO. 1
PUEBLO,COLORADO
Prepared by
McGEADY BECHERCORTESE WILLIAMS P.C.
th
450 E. 17 Ave., Suite 400
Denver, CO 80203-1254
Submitted: June 3, 2025
Approved: August 11, 2025
Initials: ______
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................................1
A. Purpose and Intent....................................................................................................1
B.Need for the Districts. ..............................................................................................1
C. Objective of the City Regarding the District’s Service Plan. ..................................1
II. DEFINITIONS .....................................................................................................................2
III. BOUNDARIES ....................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ..4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES........4
A. Types of Improvements ...........................................................................................4
1. Street Improvements....................................................................................5
2. Water Improvements ....................................................................................5
3. Sanitation Improvements .............................................................................5
4. Safety Protection Improvements..................................................................5
5. Park and Recreation Improvements .............................................................5
6. Transportation Improvements......................................................................6
7. Fire Protection ..............................................................................................6
B.Other Powers. ...........................................................................................................6
1. Operations and Maintenance........................................................................6
2. Security Services ..........................................................................................6
3. Covenant Enforcement.................................................................................6
4. Phasing; Deferral .........................................................................................6
5. Service Plan Amendment.............................................................................6
6. Additional Services......................................................................................7
7. Subdistricts ...................................................................................................7
8. Special Improvement District ......................................................................7
C.Construction Standards Limitation ..........................................................................7
D. Inclusion Limitation .................................................................................................7
E. Overlap Limitation ...................................................................................................7
F. Fee Limitation..........................................................................................................7
G. Total Debt Issuance Limitation ................................................................................7
H. Privately Placed Debt Limitation .............................................................................8
I. Bankruptcy Limitation.............................................................................................8
J. Intergovernmental Agreements ................................................................................8
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS .........................................................9
VII.FINANCIAL PLAN.............................................................................................................9
A. General. ....................................................................................................................9
B.Maximum Voted Interest Rate and Maximum Underwriting Discount..................9
C. Maximum Debt Mill Levy. ....................................................................................10
D.Maximum Debt Mill Levy Imposition Term.........................................................10
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E. Debt Repayment Sources. ......................................................................................11
F.Security for Debt....................................................................................................11
G. Debt Instrument Disclosure Requirement ..............................................................11
H. District’s Operating Costs. .....................................................................................11
VIII. ANNUAL REPORT ..........................................................................................................12
A. General. ..................................................................................................................12
B. Reporting of Significant Events. ............................................................................12
IX. DISSOLUTION .................................................................................................................13
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT ........................................13
XI. CONCLUSION ..................................................................................................................13
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LIST OF EXHIBITS
EXHIBIT A-1 Initial District Boundary Legal Description
EXHIBIT A-2 Inclusion Area Boundary Legal Description
EXHIBIT B Vicinity Map
EXHIBIT C-1 Initial District Boundary Map
EXHIBIT C-2 Inclusion Area Boundary Map
EXHIBIT D Service Plan Intergovernmental Agreement with the City of Pueblo
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I.INTRODUCTION
A.Purpose and Intent.
CSU Pueblo Development Project is a residential/commercial/mixed-use
development (the “Project”) in Pueblo, Colorado (the “City”). The Project comprises
approximately One Hundred Sixteen(116) acres. The Project is currently owned by the
Colorado State University System and to be developed by a developer selected by the owner (the
“Developer”).
CSUP Metropolitan District No. 1 (the “District”) is an independent unit 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, its activities are subject to review by theCityonly insofar
as they may deviate in a material matter from the requirements of the Service Plan. It is intended
that the District will provide a part or all of the Public Improvements(defined below) for the use
and benefit of all anticipated inhabitants and taxpayers of the District. The primary purposes of
the District will be to finance the construction of these Public Improvements and provide
ongoing operation and maintenance services as more specifically set forth in this Service Plan.
The District is being organized concurrently with the organization of District No.
2 and District No. 3. The multiple district structure is anticipated to provide flexibility to finance
and operate and maintain the public improvements needed to serve several different types of
future property uses, such as residential, commercial, and mixed-use property. Under the
multiple district structure, it is anticipated that the Districts, collectively, will undertake the
financing and construction of the improvements contemplated in this Service Plan. Specifically,
the Districts shall enter into an Intergovernmental Agreement related to debt service matters,
which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
B. Need for the Districts.
There are currently no other governmental entities, including the City, located in
the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake
the planning, design, acquisition, construction, installation, relocation,redevelopment, financing,
operation and maintenance of the Public Improvements needed for the Project. Formation of the
Districts is therefore necessary in order for the Public Improvements required for the Project to
be provided in the most economic manner possible.
C. Objective of the City Regarding the District’s Service Plan.
The City’s objective in approving the Service Plan is to authorize the District to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment and financing of the Public Improvements from the proceeds of Debt to be issued
by the Districts and other legally available revenues of the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy
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Imposition Term for residential properties and at a mill levy no higher than the Maximum Debt
Mill Levy andFeesand any other legally available revenue. Debt which is issued within these
parameters and, as further described in the Financial Plan, will insulate property owners from
excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and
reasonable discharge of the Debt.
The primary purpose of the Districts is to provide for the Public Improvements
associated with development and, if applicable, regional needs, and operate and maintain Public
Improvements not accepted by the City, other appropriate jurisdiction or an owners’ association.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan, subdivision improvement
agreement or other document approved by the Citythat, among other things, identifies
Public Improvements necessary for facilitating development for property within the
Service Area.
Board: means the board of directors of the District.
Bond, Bonds or Debt: means bonds or other obligations for the payment of which the
District has promised to impose an ad valorem property tax mill levy, or impose and
collect Fee revenue.
City Council: means the City Council of the City of Pueblo, Colorado.
District No. 1: means CSUP Metropolitan District No. 1.
District No. 2: means CSUP Metropolitan District No. 2.
District No. 3: means CSUP Metropolitan District No. 3.
Districts: means District No. 1, District No. 2, and District No. 3 collectively.
End User: means any owner, or tenant of any owner, of any taxable improvement within
the Districts who is intended to become burdened by the imposition of ad valorem
property taxes subject to the Maximum Debt Mill Levy. By way of illustration, a
resident homeowner, renter, commercial property owner, or commercial tenant is an End
User. The business entity that constructs homes or commercial structures is not an End
User.
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
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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 Debt.
Fees: means any fee imposed and/or received by the District for services, programs, or
facilities provided by the District.
Financial Plan: means the Financial Plan described in SectionVII which describes
(i) how the Public Improvements are to be financed; (ii) how the Debt is expected to be
incurred; and (iii) the estimated operating revenue derived from property taxes for the
first budget year.
Inclusion Area Boundaries: means the boundaries of the area legally described in
Exhibit A-2 and depicted on the Inclusion Area Boundary Map.
Inclusion Area Boundary Map: means the map attached hereto as ExhibitC-2, depicting
the property proposed for inclusion within the District.
Initial District Boundaries: means the boundaries of the area legally described in Exhibit
A-1 and depicted on the Initial District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C-1, depicting
the District’s initial boundaries.
Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to
impose for payment of Debt as set forth in Section VII.Cbelow.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy on a particular property developed for residential uses as set forth in Section
VII.D below
Project: means the CSU Pueblo Development Project.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed as
generally described in the Special District Act, except as specifically limited in SectionV
below to serve the future taxpayers and inhabitants of the Service Area as determined by
the Board.
Service Area: means, collectively,the property within the Initial District Boundaries and
the Inclusion Area Boundaries.
Service Plan: means this service plan for the District approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved by the
City in accordance with applicable law.
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S
pecial District Act: means Section 32-1-101, etseq., of the Colorado Revised Statutes,
as amended from time to time.
State: means the State of Colorado.
Taxable Property: means real property subject to ad valorem taxes imposed by the
District.
Total Debt Issuance Limit: means the maximum amount of general obligation Debt the
Districts, in aggregate, may issue, which amount shall be Twenty-One MillionDollars
($21,000,000).
III.BOUNDARIES
The Initial District Boundaries include approximately six hundredths (0.06) acres, and the
total area proposed to be in the Inclusion Area Boundaries is approximately One Hundred
Sixteen (116) acres. Legal descriptions of the Initial District Boundaries and the Inclusion Area
Boundaries are attached hereto as Exhibit A-1 and Exhibit A-2, respectively. A vicinity map is
attached hereto as Exhibit B. A map of the Initial District Boundaries is attached hereto as
Exhibit C-1, and a map of the Inclusion Area Boundaries is attached hereto as Exhibit C-2. It is
anticipated that the District’s boundaries may change from time to time as it undergoes
inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501,
et seq., C.R.S., subject to the limitations set forth in ArticleV below.
IV.PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
The Service Area consists of approximately One Hundred Sixteen (116) acres of
land of residential, commercial, and mixed-use property. The current assessed valuation of the
Service Area is $0.00 for purposes of this Service Plan and, at build out, is expected to be
sufficient to reasonably discharge the Debt under the Financial Plan. The population of the
Districts at build-out is estimated to be approximately eight hundred twenty (820) people.
Approval of this Service Plan by the City does not imply approval of the development of
a specific area within the District, nor does it imply approval of the number of residential units or
the total site/floor area of commercial or industrial buildings identified in this Service Plan or
any of the exhibits attached thereto, unless the same is contained within an Approved
Development Plan.
V.DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A.Types of Improvements. The District shall have the power and authority to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment, financing, operation, and maintenance of Public Improvements, within and
without the boundaries of the District, as such power and authority is described in the Special
District Act, and other applicable statutes, common law, and the Constitution. Without limiting
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the foregoing, following is a general description of the types of Public Improvements and
services the District shall be authorized to provide.
1. Street Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate,and maintain street and
roadway improvements including, but not limited to, related landscaping, curbs, gutters,
sidewalks, culverts, and other drainage facilities, pedestrian ways, bridges, overpasses,
interchanges, signage, median islands, alleys, parking facilities, paving, lighting, grading and
irrigation structures, together with all necessary, incidental and appurtenant facilities, land and
easements, and all extensions of and improvements to said facilities. It is anticipated that street
improvements not accepted bythe City or other appropriate jurisdiction or an owners’
association will be owned and maintained by the District.
2. Water Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate and maintain potable, non-
potable, and irrigation water systems including, but not limited to, transmission lines, distribution
mains and laterals, storage and treatment facilities, water right acquisition, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities. It is anticipated that water improvements not accepted by the
City or other appropriate jurisdiction or an owners’ association will be owned and maintained by
the District.
3. Sanitation Improvements. The District shall have the power and authority
to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain sanitation
improvements including, but not limited to, sanitary sewer transmission lines, wastewater
treatment, storm drainage, detention/retention ponds, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that sanitation improvements not accepted by the City or other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
4. Safety Protection Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
traffic and safety controls and devices on streets, highways and railroad crossings including, but
not limited to, signalization, signage and striping, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that safety protection improvements not accepted by the City orother
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
5. Park and Recreation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
park and recreation facilities and programs including, but not limited to, parks, pedestrian ways,
bike paths, bike storage facilities, signage, interpretive kiosks and facilities, open space,
landscaping, cultural activities, community centers, recreational centers, water bodies, wildlife
preservation and mitigation areas, irrigation facilities, playgrounds, pocket parks, swimming
pools, and other active and passive recreational facilities, together with all necessary, incidental
and appurtenant facilities, land and easements, and all extensions of and improvements to said
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facilities. It is anticipated that park and recreation improvements not accepted bythe City, other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
6. Transportation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain a
system to transport the public by bus, rail or any other means of conveyance, or any combination
thereof, including, but not limited to, bus stops and shelters, park-and-ride facilities, parking
facilities, bike storage facilities, together with all necessary, incidental and appurtenant facilities,
land and easements, and all extensions of and improvements to said facilities. It is anticipated
that transportation improvements not accepted by the City or other appropriate jurisdiction or an
owners’ association will be owned and maintained by the District.
7. Fire Protection. The District shall have the power and authority to plan,
design, acquire, construct, install, relocate, redevelop and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
B.Other Powers.
1. Operations and Maintenance. The District shall be authorized to operate
and maintain Public Improvements not accepted by the City or other governmental entities
having proper jurisdiction or to an owners’ association. To the extent the District retains
ownership of any Public Improvements, the District shall be authorized to enter into one or more
agreements with owners’ associations pursuant to which such owners’ association(s) may
operate and maintain such Public Improvements.
2. Security Services. Subject to the provisions of Section 32-1-1004(7),
C.R.S., the District shall have the power to furnish security services within the Service Area.
3. Covenant Enforcement. Subject to the provisions of Section 32-1-
1004(8), C.R.S., the District shall have the power to furnish covenant enforcement and design
review services within the Service Area.
4. Phasing; Deferral. Except as may be limited herein, the District shall have
the right, without having to amend this Service Plan, to defer, delay, reschedule, re-phase or
restructure the financing and/or construction of the Public Improvements to accommodate the
pace of development within the Project, resource availability and the funding capability of the
District.
5. Service Plan Amendment. The District shall have the authority to amend
or modify this Service Plan, as needed, subject to the applicable statutory procedures.
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6. Additional Services. Except as specifically provided herein, the District
shall be authorized to provide such additional services and exercise such powers as are expressly
or impliedly granted by Colorado law.
7. Subdistricts. The District shall have the authority pursuant to Section 32-
1-1101(1)(f), C.R.S., and Sections 32-1-1101(1.5)(a)-(e), C.R.S., to divide the District into one
or more areas consistent with the services, programs and facilities to be furnished therein. The
exercise of such authority shall not be deemed a material modification of this Service Plan.
8. Special Improvement District. The District shall have the authority
pursuant to Section 32-1-1101.7, C.R.S., to establish one or more special improvement districts
within the boundaries ofthe District, including the power to levy assessments.
C.Construction Standards Limitation. The District will ensure that the Public
Improvements are designed and constructed in accordance with the applicable standards and
specifications of the City and of other governmental entities having proper jurisdiction.
D. Inclusion Limitation. The District shall have the authority to include within its
boundaries any property within the Service Area without the prior written consent of the City.
The District shall not include within any of its boundaries any property outside the Service Area
without the prior written consent of the City except upon petition of the fee owner or owners of
100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
E. Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill
Levy of the Districts.
F. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, or for operations and maintenance. No Fee related
to the funding of costs of a capital nature shall be authorized to be imposed upon or collected
from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the restrictions in this
definition shall not apply to any Fee imposed upon or collected from Taxable Property for the
purpose of funding operation and maintenance costs of the Districts.
G. Total Debt Issuance Limitation. The Districts shall not issue Debt in excess of the
Total Debt Issuance Limit; provided, however, any refunding Debt shall not count against the
Total Debt Issuance Limit. Any Debt, issued with a pledge or which results in a pledge, that
exceeds the Maximum Debt Mill Levy shall be deemed a material modification of this Service
Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless
and until such material modification has been approved by the City as part of a Service Plan
Amendment.
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Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum Debt
Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material
modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an
authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
H. Privately Placed Debt Limitation. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
I. Bankruptcy Limitation. All of the limitations contained in this Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt
Mill Levy Imposition Term and the Fees have been established under the authority of the City to
approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly
intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the “political or governmental powers” reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C. Section 903, and are also included in the “regulatory or electoral
approval necessary under applicable nonbankruptcy law” as required for confirmation of a
Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6).
J. Intergovernmental Agreements. The District shall have the authority to enter into
such intergovernmental agreements as may be necessary or appropriate to perform the functions
for which the District has been organized, including the provision of Public Improvements
required by any Approved Development Plan. It is anticipated that the Districts, collectively,
will undertake the financing and construction of the improvements contemplated in this Service
Plan. Specifically, the Districts shall enter into an Intergovernmental Agreementrelated to debt
service matters, which shall govern the relationships between and among the Districts with
respect to the financing, installation and construction the improvements contemplated herein.
Each individual District shall have the responsibility to coordinate the operation and maintenance
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of improvements within its boundaries, including the decision on what mill levy to impose for
the provision of operation and maintenance services to its taxpayers and service users.
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS
An estimate of the costs of the Public Improvements which may be planned for, designed,
acquired, constructed, installed, relocated, redeveloped, maintained or financed was prepared
based upon a preliminary engineering survey and estimates derived from the zoning on the
property in the Service Area and is approximately Eleven Million Seven Hundred Fifteen
Thousand Five Hundred Thirty Dollars ($11,715,530) in 2025 dollars. All construction cost
estimates are based on the assumption that construction conforms to applicable local, State or
Federal requirements. Actual Public Improvements to be constructed and their costs may vary,
and the Board shall have the discretion to construct any Public Improvements authorized in an
Approved Development Plan and the actual costs may increase or decrease as development
occurs without the necessity of amending this Service Plan.
VII. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation and/or redevelopment of the Public Improvements from its
revenues and by and through the proceeds of Debt to be issued by the District. The Financial
Plan for the District shall be to issue such Debt as the District can reasonably pay from revenues
derived within the Maximum Debt Mill Levy Imposition Term and from the Maximum Debt
Mill Levy, Fees and other legally available revenues. The total Debt that the Districts shall be
permitted to issue shall not exceed the Total Debt Issuance Limit and shall be permitted to be
issued on a schedule and in such year or years as the District determines shall meet the needs of
the Financial Plan referenced above and phased to serve development as it occurs. All bonds and
other Debt issued by the District may be payable from any and all legally available revenues of
the District, including, but not limited to, general ad valorem taxes to be imposed upon all
Taxable Property of the District (and associated specific ownership tax revenues) and Fees. The
District will also 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 to time, and to receive revenue from privately imposed public
improvement fees, if applicable and revenue received through agreements with other
governmental entities.
Prior to the issuance of Debt, it is anticipated that the Developer may advance
funds to the District to pay the organizational costs of the District and costs for constructing and
installing Public Improvements. The District shall be authorized to reimburse such Developer
advances with interest from Debt proceeds or other legally available revenues.
B.Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. In the event of a default, the proposed maximum interest rate on any Debt is not
expected to exceed fifteen percent (15%). The proposed maximum underwriting discount will be
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4917-3133-9831, v. 11
three percent (3%). Debt, when issued, will comply with all relevant requirements of this
Service Plan, State law and Federal law as then applicable to the issuance of public securities.
C.Maximum Debt Mill Levy.
The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is
permitted to impose upon the Taxable Property of the District for payment of Debt, and shall be
determined as follows:
1. For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 below; provided that if, on or after January 1, 2004, 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
decreased to reflect such changes, such increases or decreases to be determined by the Board in
good faith (such determination to be binding and final) so that to the extent possible, the actual
tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004,
are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing,
a change in the ratio of actual valuation shall be deemed to be a change in the method of
calculating assessed valuation.
2. For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the debt service on such Debt, without limitation of rate.
3. For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 above, so that the District is entitled to pledge to its payment an unlimited ad
valorem mill levy, the District may provide that such Debt shall remain secured by such
unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to assessed
ratio. All Debt issued by the District must be issued in compliance with the requirements of
Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized
into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as
used herein shall be deemed to refer to the District and to each such subdistrict separately, so that
each of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
D. Maximum Debt Mill Levy Imposition Term.
The District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levy for repayment of Debt) on any single property developed for
residential uses which exceeds forty (40) years after the year of the initial imposition of such mill
levy unless a majority of the Board of Directors of the District are residents of the District and
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have voted in favor of 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.; etseq.
E. Debt Repayment Sources.
The District may impose a mill levy as a primary source of revenue for repayment
of debt service and for operations and maintenance. The District may also rely upon various
other revenue sources authorized by law. At the District’s discretion, these may include the
power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(l),
C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District
exceed the Maximum Debt Mill Levy, except as provided in Section VII.C.2 above or, for
residential property within the District, the Maximum Debt Mill Levy Imposition Term.
F. Security for Debt.
The District 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 District’s obligations; nor shall
anything in the Service Plan be construed so as to create any responsibility or liability on the part
of the City in the event of default by the District in the payment of any such obligation.
G. Debt Instrument Disclosure Requirement. In the text of each Bond and any other
instrument representing and constituting Debt, the District shall set forth a statement in
substantially the following form:
By acceptance of this instrument, the owner of this Bond agrees
and consents to all of the limitations in respect of the payment of
the principal of and interest on this Bond contained herein, in the
resolution of the District authorizing the issuance of this Bond and
in the Service Plan for creation of 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.
H. District’s Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the District’s organization and initial
operations, are anticipated to be Seventy-Five Thousand Dollars ($75,000), which will be
eligible for reimbursement from Debt proceeds.
In addition to the capital costs of the Public Improvements, the District will
require operating funds for administration and to plan and cause the Public Improvements to be
constructed and maintained. The first year’s operating budget is estimated to be Fifty Thousand
Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues.
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The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the
District’s ability to increase its mill levy as necessary for provision of operation and maintenance
services to its taxpayers and service users. It is anticipated that the Developer will advance funds
to the District to pay its operating costs until such time as the District has sufficient revenue from
its operation and maintenance mill levy. The District shall be authorized to reimburse the
Developer for such advances with interest.
VIII. ANNUAL REPORT
A.General.
The District shall be responsible for submitting an annual report to the City no
later than August 1st of each year following the year in which the Order and Decree creating the
District has been issued.
B.Reporting of Significant Events.
The annual report shall include information as to any of the following:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the prior year.
2. Intergovernmental Agreements either entered into or proposed as of
December 31 of the prior year.
3. A summary of any litigation which involves the District Public
Improvements as of December 31 of the prior year.
4. Status of the District’s construction of the Public Improvements as of
December 31 of the prior year.
5. A list of all facilities and improvements constructed by the District that
have been dedicated to and accepted by the City as of December 31 of the prior year.
6. The assessed valuation of the District for the current year.
7. Current year budget.
8. Audit of the District’s financial statements, for the year ending December
31 of the previous year, prepared in accordance with generally accepted accounting principles or
audit exemption, if applicable.
9. Notice of any uncured events of default by the District, which continue
beyond a ninety (90) day period, under any Debt instrument.
10. Any inability of the District to pay its obligations as they come due, in
accordance with the terms of such obligations, which continue beyond a ninety (90) day period.
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IX. DISSOLUTION
In no event shall the District be dissolveduntil the District has provided for the payment
or discharge of all of their outstanding indebtedness and other financial obligations as required
pursuant to State statutes.
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT
The form of the service plan intergovernmental agreement required by the City, relating
to the limitations imposed on the District’s activities, is attached hereto as Exhibit D. The
District shall approve the intergovernmental agreement in the form attached as Exhibit D at its
first Board meeting after its organizational election. Failure of the District to execute the
intergovernmental agreement as required herein shall constitute a material modification and shall
require a Service Plan Amendment. The City Council shall approve the intergovernmental
agreement in the form attached as Exhibit D at the public hearing approving the Service Plan.
XI. CONCLUSION
It is submitted that this Service Plan for the District, as required by Section 32-1-203(2),
C.R.S., establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2. The existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries;
4. The area to be included in the District does have, and will have, the
financial ability to discharge the proposed indebtedness on a reasonable basis;
5. Adequate service is not, and will not be, available to the area through the
City/Town/County or other existing municipal or quasi-municipal corporations, including
existing special districts, within a reasonable time and on a comparable basis;
6. The facility and service standards of the District are compatible with the
facility and service standards of the City within which the special district is to be located and
each municipality which is an interested party under Section 32-1-204(1), C.R.S;
7. The proposal is in substantial compliance with a comprehensive plan
adopted by the City;
8. The proposal is in compliance with any duly adopted City, regional or
state long-range water quality management plan for the area; and
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9. The creation of the District is in the best interests of the area proposed to
be served.
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EXHIBIT A-1
Initial District Boundary Legal Description
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EXHIBIT A-2
Inclusion Area Boundary Legal Description
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EXHIBIT B
Vicinity Map
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EXHIBIT C-1
Initial District Boundary Map
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EXHIBIT C-2
Inclusion Area Boundary Map
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EXHIBIT D
SERVICE PLAN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF PUEBLO, COLORADO
AND
CSUP METROPOLITAN DISTRICT NO. 1
THIS SERVICE PLAN INTERGOVERNMENTAL AGREEMENT is made and
entered into as of this ____ day of ___________, ___________, by and between the CITY OF
PUEBLO, a home-rule municipal corporation of the State of Colorado (“City”), and CSUP
METROPOLITAN DISTRICT NO. 1, a quasi-municipal corporation and political subdivision
of the State of Colorado (the “District”). The City and the District are collectively referred to as
the Parties.
RECITALS
WHEREAS, the District was organized to provide those services and to exercise powers
as are more specifically set forth in the District’s Service Plan approved by the City on August
11, 2025 (“Service Plan”); and
WHEREAS, the Service Plan makes reference to the execution of an intergovernmental
agreement between the City and the District; and
WHEREAS, the City and the District have determined it to be in the best interests of their
respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Operations and Maintenance. The Districts shall dedicate the Public
Improvements (as defined in the Service Plan) to the City or other appropriate jurisdiction or
owner’s association in a manner consistent with the Approved Development Plan and other rules
and regulations of the City and applicable provisions of the City Code. The Districts shall be
authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise
required to be dedicated to the City or other public entity, including, but not limited to street
improvements (including roads, curbs, gutters, culverts, sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements), traffic and safety
controls, retaining walls, park and recreation improvements and facilities, trails, open space,
landscaping, drainage improvements (including detention and retention ponds, trickle channels,
and other drainage facilities), irrigation system improvements (including wells, pumps, storage
facilities, and distribution facilities), and all necessary equipment and appurtenances incident
thereto.
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2. Fire Protection. The District shall have the power and authority to plan, design,
acquire, construct, install, relocate, redevelop,and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
3. Construction Standards. The District will ensure that the Public Improvements
are designed and constructed in accordance with the standards and specifications of the City and
of other governmental entities having proper jurisdiction and of those special districts that
qualify as “interested parties” under Section 32-1-204(1), C.R.S., as applicable. The District will
obtain the City’s approval of civil engineering plans and will obtain applicable permits for
construction and installation of Public Improvements prior to performing such work.
4. Issuance of Privately Placed Debt. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
5. Inclusion Limitation. The Districts shall not include within any of their
boundaries any property outside the Service Area without the prior written consent of the City.
The Districts shall not include within any of its boundaries any property inside the inclusion area
boundaries without the prior written consent of the City except upon petition of the fee owner or
owners of 100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
6.Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
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payment of Debt of such proposed districts will not any time exceed the Maximum Debt Mill
Levy of the Districts.
7. Initial Debt. On or before the effective date of approval by the City of an
Approved Development Plan (as defined in the Service Plan), the District shall not: (a) issue any
Debt; nor (b) impose a mill levy for the payment of Debt by direct imposition or by transferof
funds from the operating fund to the Debt service funds; nor (c) impose and collect any fees used
for the purpose of repayment of Debt.
8. Total Debt Issuance. The Districts shall not issue Debt in excess Twenty-One
Million Dollars ($21,000,000) in the aggregate. Any Debt, issued with a pledge or which results
in a pledge, that exceeds the Maximum Debt Mill Levy and the Maximum Debt Mill Levy
Imposition Term, shall be deemed a material modification of the Service Plan pursuant to
Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless and until such
material modification has been approved by the City as part of a Service Plan Amendment.
9. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, and/or for operations and maintenance. No Fee
related to the funding of costs of a capital nature shall be authorized to be imposed upon or
collected from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the
restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable
Property for the purpose of funding operation and maintenance costs of the Districts.
10. Bankruptcy. All of the limitations contained in the Service Plan, including, but
not limited to, those pertaining to the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term have been established under the authority of the City to approve a Service
Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such
limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law, included in the
“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11
U.S.C. Section 903), and are also included in the “regulatory or electoral approval necessary
under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy
Plan under Bankruptcy Code Section 943(b)(6).
11. Service Plan Amendment Requirement. Actions of the District which violate the
limitations set forth in Sections V.A.1-9 or VII.B-G of the Service Plan shall be deemed to be
material modifications to the Service Plan and the City shall be entitled to all remedies available
under State and local law to enjoin such actions of the District.
12. Multiple District Structure. It is anticipated that the Districts, collectively, will
undertake the financing and construction of the improvements contemplated herein.
Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt service
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matters, which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
13. Annual Report. The District shall be responsible for submitting an annual report
to the City Manager no later than August 1st of each year following the year in which the Order
and Decree creating the District has been issued, pursuant to the City Code and containing the
information set forth in Section VIII of the Service Plan.
14. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the
maximum mill levy the District is permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows:
(a) For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 of the Service Plan; provided that if, on or after
January 1, 2004, 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 decreased to reflect such changes, such increases or decreases to be
determined by the Board in good faith (such determination to be binding and final) so that to the
extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes
occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes.
For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a
change in the method of calculating assessed valuation.
(b) For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the Debt service on such Debt, without limitation of rate.
(c) For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 of the Service Plan, so that the District is entitled to pledge to its payment an
unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by
such unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to
assessed ratio. All Debt issued by the District must be issued in compliance with the
requirements of Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
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The Maximum Debt Mill Levy shall not apply to the District’s Operations and
Maintenance Mill Levy for the provision of operation and maintenance services to the District’s
taxpayers and service users.
15. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy
for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt)
on any single property developed for residential uses which exceeds forty (40) years after the
year of the initial imposition of such mill levy unless a majority of the Board of Directors of the
District are residents of the District and have voted in favor of 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.
16. Notices. All notices, demands, requests,or other communications to be sent by
one party to the other hereunder or required by law shall be in writing and shall be deemed to
have been validly given or served by delivery of same in person to the address or by courier
delivery, via United Parcel Service or other nationally recognized overnight air courier service,
or by depositing same in the United States mail, postage prepaid, addressed as follows:
To the District: CSUP Metropolitan District No. 1
Address:__________________
__________________
__________________
Attn: __________________
Phone: __________________
Fax: __________________
Email: __________________
To the City: City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Attn: __________________, City Attorney
Phone: __________________
Fax: __________________
Email: __________________
All notices, demands, requests or other communications shall be effective upon
such personal delivery or one (1) business day after being deposited with United Parcel Service
or other nationally recognized overnight air courier service or three (3) business days after
deposit in the United States mail. By giving the other party hereto at least ten (10) days written
notice thereof in accordance with the provisions hereof, each of the Parties shall have the right
from time to time to change its address.
17. Amendment. This Agreement may be amended, modified, changed, or terminated
in whole or in part only by a written agreement duly authorized and executed by the Parties
hereto and without amendment to the Service Plan.
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18. Assignment. Neither Party hereto shall assign any of its rights nor delegate any of
its duties hereunder to any person or entity without having first obtained the prior written consent
of the other Party, which consent will not be unreasonably withheld. Any purported assignment
or delegation in violation of the provisions hereof shall be void and ineffectual.
19. Default/Remedies. In the event of a breach or default of this Agreement by any
Party, the non-defaulting Party shall be entitled to exercise all remedies available at law or in
equity, specifically including suits for specific performance and/or monetary damages. In the
event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable
attorneys' fees.
20. Governing Law and Venue. This Agreement shall be governed and construed
under the laws of the State of Colorado.
21. Inurement. Each of the terms, covenants and conditions hereof shall be binding
upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
22. Integration. This Agreement constitutes the entire agreement between the Parties
with respect to the matters addressed herein. All prior discussions and negotiations regarding the
subject matter hereof are merged herein.
23. Parties Interested Herein. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon, or to give to, any person other than the District and
the City any right, remedy, or claim under or by reason of this Agreement or any covenants,
terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions
in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive
benefit of the District and the City.
24. Severability. If any covenant, term, condition, or provision under this Agreement
shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of
such covenant, term, condition, or provision shall not affect any other provision contained
herein, the intention being that such provisions are severable.
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which shall constitute one and the same document.
26. Paragraph Headings. Paragraph headings are inserted for convenience of
reference only.
27. Defined Terms. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Service Plan.
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SIGNATURE PAGES TO INTERGOVERNMENTAL AGREEMENT
CSUP METROPOLITAN DISTRICT NO. 1
By:
President
Attest:
Secretary
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CITY OF PUEBLO, COLORADO
By:
HEATHER GRAHAM, Mayor
ATTEST:
___________________________________
_______________, City Clerk
APPROVED AS TO FORM:
___________________________________
__________________, City Attorney
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SERVICE PLAN
FOR
CSUPMETROPOLITAN DISTRICTNO. 2
PUEBLO,COLORADO
Prepared by
McGEADY BECHERCORTESE WILLIAMS P.C.
th
450 E. 17 Ave., Suite 400
Denver, CO 80203-1254
Submitted: June 3, 2025
Approved: August 11, 2025
Initials: _____
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................................1
A. Purpose and Intent....................................................................................................1
B.Need for the Districts. ..............................................................................................1
C. Objective of the City Regarding the District’s Service Plan. ..................................1
II. DEFINITIONS .....................................................................................................................2
III. BOUNDARIES ....................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ..4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES........4
A. Types of Improvements ...........................................................................................4
1. Street Improvements....................................................................................5
2. Water Improvements ....................................................................................5
3. Sanitation Improvements .............................................................................5
4. Safety Protection Improvements..................................................................5
5. Park and Recreation Improvements .............................................................5
6. Transportation Improvements......................................................................6
7. Fire Protection ..............................................................................................6
B.Other Powers. ...........................................................................................................6
1. Operations and Maintenance........................................................................6
2. Security Services ..........................................................................................6
3. Covenant Enforcement.................................................................................6
4. Phasing; Deferral .........................................................................................6
5. Service Plan Amendment.............................................................................6
6. Additional Services......................................................................................7
7. Subdistricts ...................................................................................................7
8. Special Improvement District ......................................................................7
C.Construction Standards Limitation ..........................................................................7
D. Inclusion Limitation .................................................................................................7
E. Overlap Limitation ...................................................................................................7
F. Fee Limitation..........................................................................................................7
G. Total Debt Issuance Limitation ................................................................................7
H. Privately Placed Debt Limitation .............................................................................8
I. Bankruptcy Limitation.............................................................................................8
J. Intergovernmental Agreements ................................................................................8
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS .........................................................9
VII.FINANCIAL PLAN.............................................................................................................9
A. General. ....................................................................................................................9
B.Maximum Voted Interest Rate and Maximum Underwriting Discount..................9
C. Maximum Debt Mill Levy. ....................................................................................10
D.Maximum Debt Mill Levy Imposition Term.........................................................10
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E. Debt Repayment Sources. ......................................................................................11
F.Security for Debt....................................................................................................11
G. Debt Instrument Disclosure Requirement ..............................................................11
H. District’s Operating Costs. .....................................................................................11
VIII. ANNUAL REPORT ..........................................................................................................12
A. General. ..................................................................................................................12
B. Reporting of Significant Events. ............................................................................12
IX. DISSOLUTION .................................................................................................................13
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT ........................................13
XI. CONCLUSION ..................................................................................................................13
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LIST OF EXHIBITS
EXHIBIT A-1 Initial District Boundary Legal Description
EXHIBIT A-2 Inclusion Area Boundary Legal Description
EXHIBIT B Vicinity Map
EXHIBIT C-1 Initial District Boundary Map
EXHIBIT C-2 Inclusion Area Boundary Map
EXHIBIT D Service Plan Intergovernmental Agreement with the City of Pueblo
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I.INTRODUCTION
A.Purpose and Intent.
CSU Pueblo Development Project is a residential/commercial/mixed-use
development (the “Project”) in Pueblo, Colorado (the “City”). The Project comprises
approximately One Hundred Sixteen(116) acres. The Project is currently owned by the
Colorado State University System and to be developed by a developer selected by the owner (the
“Developer”).
CSUP Metropolitan District No. 2 (the “District”) is an independent unit 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, its activities are subject to review by theCityonly insofar
as they may deviate in a material matter from the requirements of the Service Plan. It is intended
that the District will provide a part or all of the Public Improvements(defined below) for the use
and benefit of all anticipated inhabitants and taxpayers of the District. The primary purposes of
the District will be to finance the construction of these Public Improvements and provide
ongoing operation and maintenance services as more specifically set forth in this Service Plan.
The District is being organized concurrently with the organization of District No.
1 and District No. 3. The multiple district structure is anticipated to provide flexibility to finance
and operate and maintain the public improvements needed to serve several different types of
future property uses, such as residential, commercial, and mixed-use property. Under the
multiple district structure, it is anticipated that the Districts, collectively, will undertake the
financing and construction of the improvements contemplated in this Service Plan. Specifically,
the Districts shall enter into an Intergovernmental Agreement related to debt service matters,
which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
B. Need for the Districts.
There are currently no other governmental entities, including the City, located in
the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake
the planning, design, acquisition, construction, installation, relocation,redevelopment, financing,
operation and maintenance of the Public Improvements needed for the Project. Formation of the
Districts is therefore necessary in order for the Public Improvements required for the Project to
be provided in the most economic manner possible.
C. Objective of the City Regarding the District’s Service Plan.
The City’s objective in approving the Service Plan is to authorize the District to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment and financing of the Public Improvements from the proceeds of Debt to be issued
by the Districts and other legally available revenues of the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy
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Imposition Term for residential properties and at a mill levy no higher than the Maximum Debt
Mill Levy andFeesand any other legally available revenue. Debt which is issued within these
parameters and, as further described in the Financial Plan, will insulate property owners from
excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and
reasonable discharge of the Debt.
The primary purpose of the Districts is to provide for the Public Improvements
associated with development and, if applicable, regional needs, and operate and maintain Public
Improvements not accepted by the City, other appropriate jurisdiction or an owners’ association.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan, subdivision improvement
agreement or other document approved by the Citythat, among other things, identifies
Public Improvements necessary for facilitating development for property within the
Service Area.
Board: means the board of directors of the District.
Bond, Bonds or Debt: means bonds or other obligations for the payment of which the
District has promised to impose an ad valorem property tax mill levy, or impose and
collect Fee revenue.
City Council: means the City Council of the City of Pueblo, Colorado.
District No. 1: means CSUP Metropolitan District No. 1.
District No. 2: means CSUP Metropolitan District No. 2.
District No. 3: means CSUP Metropolitan District No. 3.
Districts: means District No. 1, District No. 2, and District No. 3 collectively.
End User: means any owner, or tenant of any owner, of any taxable improvement within
the Districts who is intended to become burdened by the imposition of ad valorem
property taxes subject to the Maximum Debt Mill Levy. By way of illustration, a
resident homeowner, renter, commercial property owner, or commercial tenant is an End
User. The business entity that constructs homes or commercial structures is not an End
User.
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
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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 Debt.
Fees: means any fee imposed and/or received by the District for services, programs, or
facilities provided by the District.
Financial Plan: means the Financial Plan described in SectionVII which describes
(i) how the Public Improvements are to be financed; (ii) how the Debt is expected to be
incurred; and (iii) the estimated operating revenue derived from property taxes for the
first budget year.
Inclusion Area Boundaries: means the boundaries of the area legally described in
Exhibit A-2 and depicted on the Inclusion Area Boundary Map.
Inclusion Area Boundary Map: means the map attached hereto as ExhibitC-2, depicting
the property proposed for inclusion within the District.
Initial District Boundaries: means the boundaries of the area legally described in Exhibit
A-1 and depicted on the Initial District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C-1, depicting
the District’s initial boundaries.
Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to
impose for payment of Debt as set forth in Section VII.Cbelow.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy on a particular property developed for residential uses as set forth in Section
VII.D below
Project: means the CSU Pueblo Development Project.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed as
generally described in the Special District Act, except as specifically limited in SectionV
below to serve the future taxpayers and inhabitants of the Service Area as determined by
the Board.
Service Area: means, collectively,the property within the Initial District Boundaries and
the Inclusion Area Boundaries.
Service Plan: means this service plan for the District approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved by the
City in accordance with applicable law.
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S
pecial District Act: means Section 32-1-101, etseq., of the Colorado Revised Statutes,
as amended from time to time.
State: means the State of Colorado.
Taxable Property: means real property subject to ad valorem taxes imposed by the
District.
Total Debt Issuance Limit: means the maximum amount of general obligation Debt the
Districts, in aggregate, may issue, which amount shall be Twenty-One MillionDollars
($21,000,000).
III.BOUNDARIES
The Initial District Boundaries include approximately seven hundredths (0.07) acres, and
the total area proposed to be in the Inclusion Area Boundaries is approximately One Hundred
Sixteen (116) acres. Legal descriptions of the Initial District Boundaries and the Inclusion Area
Boundaries are attached hereto as Exhibit A-1 and Exhibit A-2, respectively. A vicinity map is
attached hereto as Exhibit B. A map of the Initial District Boundaries is attached hereto as
Exhibit C-1, and a map of the Inclusion Area Boundaries is attached hereto as Exhibit C-2. It is
anticipated that the District’s boundaries may change from time to time as it undergoes
inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501,
et seq., C.R.S., subject to the limitations set forth in ArticleV below.
IV.PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
The Service Area consists of approximately One Hundred Sixteen (116) acres of
land of residential, commercial, and mixed-use property. The current assessed valuation of the
Service Area is $0.00 for purposes of this Service Plan and, at build out, is expected to be
sufficient to reasonably discharge the Debt under the Financial Plan. The population of the
Districts at build-out is estimated to be approximately eight hundred twenty (820) people.
Approval of this Service Plan by the City does not imply approval of the development of
a specific area within the District, nor does it imply approval of the number of residential units or
the total site/floor area of commercial or industrial buildings identified in this Service Plan or
any of the exhibits attached thereto, unless the same is contained within an Approved
Development Plan.
V.DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A.Types of Improvements. The District shall have the power and authority to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment, financing, operation, and maintenance of Public Improvements, within and
without the boundaries of the District, as such power and authority is described in the Special
District Act, and other applicable statutes, common law, and the Constitution. Without limiting
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4936-1153-5439, v. 1
the foregoing, following is a general description of the types of Public Improvements and
services the District shall be authorized to provide.
1. Street Improvements.The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate,and maintain street and
roadway improvements including, but not limited to, related landscaping, curbs, gutters,
sidewalks, culverts, and other drainage facilities, pedestrian ways, bridges, overpasses,
interchanges, signage, median islands, alleys, parking facilities, paving, lighting, grading and
irrigation structures, together with all necessary, incidental and appurtenant facilities, land and
easements, and all extensions of and improvements to said facilities. It is anticipated that street
improvements not accepted bythe City or other appropriate jurisdiction or an owners’
association will be owned and maintained by the District.
2. Water Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate and maintain potable, non-
potable, and irrigation water systems including, but not limited to, transmission lines, distribution
mains and laterals, storage and treatment facilities, water right acquisition, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities. It is anticipated that water improvements not accepted by the
City or other appropriate jurisdiction or an owners’ association will be owned and maintained by
the District.
3. Sanitation Improvements. The District shall have the power and authority
to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain sanitation
improvements including, but not limited to, sanitary sewer transmission lines, wastewater
treatment, storm drainage, detention/retention ponds, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that sanitation improvements not accepted by the City or other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
4. Safety Protection Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
traffic and safety controls and devices on streets, highways and railroad crossings including, but
not limited to, signalization, signage and striping, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that safety protection improvements not accepted by the City orother
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
5. Park and Recreation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
park and recreation facilities and programs including, but not limited to, parks, pedestrian ways,
bike paths, bike storage facilities, signage, interpretive kiosks and facilities, open space,
landscaping, cultural activities, community centers, recreational centers, water bodies, wildlife
preservation and mitigation areas, irrigation facilities, playgrounds, pocket parks, swimming
pools, and other active and passive recreational facilities, together with all necessary, incidental
and appurtenant facilities, land and easements, and all extensions of and improvements to said
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4936-1153-5439, v. 1
facilities. It is anticipated that park and recreation improvements not accepted bythe City, other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
6. Transportation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain a
system to transport the public by bus, rail or any other means of conveyance, or any combination
thereof, including, but not limited to, bus stops and shelters, park-and-ride facilities, parking
facilities, bike storage facilities, together with all necessary, incidental and appurtenant facilities,
land and easements, and all extensions of and improvements to said facilities. It is anticipated
that transportation improvements not accepted by the City or other appropriate jurisdiction or an
owners’ association will be owned and maintained by the District.
7. Fire Protection. The District shall have the power and authority to plan,
design, acquire, construct, install, relocate, redevelop and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
B.Other Powers.
1. Operations and Maintenance. The District shall be authorized to operate
and maintain Public Improvements not accepted by the City or other governmental entities
having proper jurisdiction or to an owners’ association. To the extent the District retains
ownership of any Public Improvements, the District shall be authorized to enter into one or more
agreements with owners’ associations pursuant to which such owners’ association(s) may
operate and maintain such Public Improvements.
2. Security Services. Subject to the provisions of Section 32-1-1004(7),
C.R.S., the District shall have the power to furnish security services within the Service Area.
3. Covenant Enforcement. Subject to the provisions of Section 32-1-
1004(8), C.R.S., the District shall have the power to furnish covenant enforcement and design
review services within the Service Area.
4. Phasing; Deferral. Except as may be limited herein, the District shall have
the right, without having to amend this Service Plan, to defer, delay, reschedule, re-phase or
restructure the financing and/or construction of the Public Improvements to accommodate the
pace of development within the Project, resource availability and the funding capability of the
District.
5. Service Plan Amendment. The District shall have the authority to amend
or modify this Service Plan, as needed, subject to the applicable statutory procedures.
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4936-1153-5439, v. 1
6. Additional Services. Except as specifically provided herein, the District
shall be authorized to provide such additional services and exercise such powers as are expressly
or impliedly granted by Colorado law.
7. Subdistricts.The District shall have the authority pursuant to Section 32-
1-1101(1)(f), C.R.S., and Sections 32-1-1101(1.5)(a)-(e), C.R.S., to divide the District into one
or more areas consistent with the services, programs and facilities to be furnished therein. The
exercise of such authority shall not be deemed a material modification of this Service Plan.
8. Special Improvement District. The District shall have the authority
pursuant to Section 32-1-1101.7, C.R.S., to establish one or more special improvement districts
within the boundaries ofthe District, including the power to levy assessments.
C.Construction Standards Limitation. The District will ensure that the Public
Improvements are designed and constructed in accordance with the applicable standards and
specifications of the City and of other governmental entities having proper jurisdiction.
D. Inclusion Limitation. The District shall have the authority to include within its
boundaries any property within the Service Area without the prior written consent of the City.
The District shall not include within any of its boundaries any property outside the Service Area
without the prior written consent of the City except upon petition of the fee owner or owners of
100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
E. Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill
Levy of the Districts.
F. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, or for operations and maintenance. No Fee related
to the funding of costs of a capital nature shall be authorized to be imposed upon or collected
from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the restrictions in this
definition shall not apply to any Fee imposed upon or collected from Taxable Property for the
purpose of funding operation and maintenance costs of the Districts.
G. Total Debt Issuance Limitation. The Districts shall not issue Debt in excess of the
Total Debt Issuance Limit; provided, however, any refunding Debt shall not count against the
Total Debt Issuance Limit. Any Debt, issued with a pledge or which results in a pledge, that
exceeds the Maximum Debt Mill Levy shall be deemed a material modification of this Service
Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless
and until such material modification has been approved by the City as part of a Service Plan
Amendment.
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4936-1153-5439, v. 1
Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum
Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material
modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an
authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
H. Privately Placed Debt Limitation. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
I. Bankruptcy Limitation. All of the limitations contained in this Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt
Mill Levy Imposition Term and the Fees have been established under the authority of the City to
approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly
intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the “political or governmental powers” reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C. Section 903, and are also included in the “regulatory or electoral
approval necessary under applicable nonbankruptcy law” as required for confirmation of a
Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6).
J. Intergovernmental Agreements. The District shall have the authority to enter into
such intergovernmental agreements as may be necessary or appropriate to perform the functions
for which the District has been organized, including the provision of Public Improvements
required by any Approved Development Plan. It is anticipated that the Districts, collectively,
will undertake the financing and construction of the improvements contemplated in this Service
Plan. Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt
service matters, which shall govern the relationships between and among the Districts with
respect to the financing, installation and construction the improvements contemplated herein.
Each individual District shall have the responsibility to coordinate the operation and maintenance
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4936-1153-5439, v. 1
of improvements within its boundaries, including the decision on what mill levy to impose for
the provision of operation and maintenance services to its taxpayers and service users.
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS
An estimate of the costs of the Public Improvements which may be planned for, designed,
acquired, constructed, installed, relocated, redeveloped, maintained or financed was prepared
based upon a preliminary engineering survey and estimates derived from the zoning on the
property in the Service Area and is approximately Eleven Million Seven Hundred Fifteen
Thousand Five Hundred Thirty Dollars ($11,715,530) in 2025 dollars. All construction cost
estimates are based on the assumption that construction conforms to applicable local, State or
Federal requirements. Actual Public Improvements to be constructed and their costs may vary,
and the Board shall have the discretion to construct any Public Improvements authorized in an
Approved Development Plan and the actual costs may increase or decrease as development
occurs without the necessity of amending this Service Plan.
VII. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation and/or redevelopment of the Public Improvements from its
revenues and by and through the proceeds of Debt to be issued by the District. The Financial
Plan for the District shall be to issue such Debt as the District can reasonably pay from revenues
derived within the Maximum Debt Mill Levy Imposition Term and from the Maximum Debt
Mill Levy, Fees and other legally available revenues. The total Debt that the Districts shall be
permitted to issue shall not exceed the Total Debt Issuance Limit and shall be permitted to be
issued on a schedule and in such year or years as the District determines shall meet the needs of
the Financial Plan referenced above and phased to serve development as it occurs. All bonds and
other Debt issued by the District may be payable from any and all legally available revenues of
the District, including, but not limited to, general ad valorem taxes to be imposed upon all
Taxable Property of the District (and associated specific ownership tax revenues) and Fees. The
District will also 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 to time, and to receive revenue from privately imposed public
improvement fees, if applicable and revenue received through agreements with other
governmental entities.
Prior to the issuance of Debt, it is anticipated that the Developer may advance
funds to the District to pay the organizational costs of the District and costs for constructing and
installing Public Improvements. The District shall be authorized to reimburse such Developer
advances with interest from Debt proceeds or other legally available revenues.
B.Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. In the event of a default, the proposed maximum interest rate on any Debt is not
expected to exceed fifteen percent (15%). The proposed maximum underwriting discount will be
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4936-1153-5439, v. 1
three percent (3%). Debt, when issued, will comply with all relevant requirements of this
Service Plan, State law and Federal law as then applicable to the issuance of public securities.
C.Maximum Debt Mill Levy.
The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is
permitted to impose upon the Taxable Property of the District for payment of Debt, and shall be
determined as follows:
1. For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 below; provided that if, on or after January 1, 2004, 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
decreased to reflect such changes, such increases or decreases to be determined by the Board in
good faith (such determination to be binding and final) so that to the extent possible, the actual
tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004,
are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing,
a change in the ratio of actual valuation shall be deemed to be a change in the method of
calculating assessed valuation.
2. For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the debt service on such Debt, without limitation of rate.
3. For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 above, so that the District is entitled to pledge to its payment an unlimited ad
valorem mill levy, the District may provide that such Debt shall remain secured by such
unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to assessed
ratio. All Debt issued by the District must be issued in compliance with the requirements of
Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized
into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as
used herein shall be deemed to refer to the District and to each such subdistrict separately, so that
each of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
D. Maximum Debt Mill Levy Imposition Term.
The District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levy for repayment of Debt) on any single property developed for
residential uses which exceeds forty (40) years after the year of the initial imposition of such mill
levy unless a majority of the Board of Directors of the District are residents of the District and
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4936-1153-5439, v. 1
have voted in favor of 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.; etseq.
E. Debt Repayment Sources.
The District may impose a mill levy as a primary source of revenue for repayment
of debt service and for operations and maintenance. The District may also rely upon various
other revenue sources authorized by law. At the District’s discretion, these may include the
power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(l),
C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District
exceed the Maximum Debt Mill Levy, except as provided in Section VII.C.2 above or, for
residential property within the District, the Maximum Debt Mill Levy Imposition Term.
F. Security for Debt.
The District 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 District’s obligations; nor shall
anything in the Service Plan be construed so as to create any responsibility or liability on the part
of the City in the event of default by the District in the payment of any such obligation.
G. Debt Instrument Disclosure Requirement. In the text of each Bond and any other
instrument representing and constituting Debt, the District shall set forth a statement in
substantially the following form:
By acceptance of this instrument, the owner of this Bond agrees
and consents to all of the limitations in respect of the payment of
the principal of and interest on this Bond contained herein, in the
resolution of the District authorizing the issuance of this Bond and
in the Service Plan for creation of 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.
H. District’s Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the District’s organization and initial
operations, are anticipated to be Seventy-Five Thousand Dollars ($75,000), which will be
eligible for reimbursement from Debt proceeds.
In addition to the capital costs of the Public Improvements, the District will
require operating funds for administration and to plan and cause the Public Improvements to be
constructed and maintained. The first year’s operating budget is estimated to be Fifty Thousand
Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues.
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The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the
District’s ability to increase its mill levy as necessary for provision of operation and maintenance
services to its taxpayers and service users. It is anticipated that the Developer will advance funds
to the District to pay its operating costs until such time as the District has sufficient revenue from
its operation and maintenance mill levy. The District shall be authorized to reimburse the
Developer for such advances with interest.
VIII. ANNUAL REPORT
A.General.
The District shall be responsible for submitting an annual report to the City no
later than August 1st of each year following the year in which the Order and Decree creating the
District has been issued.
B.Reporting of Significant Events.
The annual report shall include information as to any of the following:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the prior year.
2. Intergovernmental Agreements either entered into or proposed as of
December 31 of the prior year.
3. A summary of any litigation which involves the District Public
Improvements as of December 31 of the prior year.
4. Status of the District’s construction of the Public Improvements as of
December 31 of the prior year.
5. A list of all facilities and improvements constructed by the District that
have been dedicated to and accepted by the City as of December 31 of the prior year.
6. The assessed valuation of the District for the current year.
7. Current year budget.
8. Audit of the District’s financial statements, for the year ending December
31 of the previous year, prepared in accordance with generally accepted accounting principles or
audit exemption, if applicable.
9. Notice of any uncured events of default by the District, which continue
beyond a ninety (90) day period, under any Debt instrument.
10. Any inability of the District to pay its obligations as they come due, in
accordance with the terms of such obligations, which continue beyond a ninety (90) day period.
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IX. DISSOLUTION
In no event shall the District be dissolveduntil the District has provided for the payment
or discharge of all of their outstanding indebtedness and other financial obligations as required
pursuant to State statutes.
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT
The form of the service plan intergovernmental agreement required by the City, relating
to the limitations imposed on the District’s activities, is attached hereto as Exhibit D. The
District shall approve the intergovernmental agreement in the form attached as Exhibit D at its
first Board meeting after its organizational election. Failure of the District to execute the
intergovernmental agreement as required herein shall constitute a material modification and shall
require a Service Plan Amendment. The City Council shall approve the intergovernmental
agreement in the form attached as Exhibit D at the public hearing approving the Service Plan.
XI. CONCLUSION
It is submitted that this Service Plan for the District, as required by Section 32-1-203(2),
C.R.S., establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2. The existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries;
4. The area to be included in the District does have, and will have, the
financial ability to discharge the proposed indebtedness on a reasonable basis;
5. Adequate service is not, and will not be, available to the area through the
City/Town/County or other existing municipal or quasi-municipal corporations, including
existing special districts, within a reasonable time and on a comparable basis;
6. The facility and service standards of the District are compatible with the
facility and service standards of the City within which the special district is to be located and
each municipality which is an interested party under Section 32-1-204(1), C.R.S;
7. The proposal is in substantial compliance with a comprehensive plan
adopted by the City;
8. The proposal is in compliance with any duly adopted City, regional or
state long-range water quality management plan for the area; and
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9. The creation of the District is in the best interests of the area proposed to
be served.
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EXHIBIT A-1
Initial District Boundary Legal Description
A-1-1
4936-1153-5439, v. 1
EXHIBIT A-2
Inclusion Area Boundary Legal Description
A-2-1
4936-1153-5439, v. 1
EXHIBIT B
Vicinity Map
B-1
4936-1153-5439, v. 1
EXHIBIT C-1
Initial District Boundary Map
C-1-1
4936-1153-5439, v. 1
EXHIBIT C-2
Inclusion Area Boundary Map
C-2-1
4936-1153-5439, v. 1
EXHIBIT D
SERVICE PLAN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF PUEBLO, COLORADO
AND
CSUP METROPOLITAN DISTRICT NO. 2
THIS SERVICE PLAN INTERGOVERNMENTAL AGREEMENT is made and
entered into as of this ____ day of ___________, ___________, by and between the CITY OF
PUEBLO, a home-rule municipal corporation of the State of Colorado (“City”), and CSUP
METROPOLITAN DISTRICT NO. 2, a quasi-municipal corporation and political subdivision
of the State of Colorado (the “District”). The City and the District are collectively referred to as
the Parties.
RECITALS
WHEREAS, the District was organized to provide those services and to exercise powers
as are more specifically set forth in the District’s Service Plan approved by the City on August
11, 2025 (“Service Plan”); and
WHEREAS, the Service Plan makes reference to the execution of an intergovernmental
agreement between the City and the District; and
WHEREAS, the City and the District have determined it to be in the best interests of their
respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Operations and Maintenance. The Districts shall dedicate the Public
Improvements (as defined in the Service Plan) to the City or other appropriate jurisdiction or
owner’s association in a manner consistent with the Approved Development Plan and other rules
and regulations of the City and applicable provisions of the City Code. The Districts shall be
authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise
required to be dedicated to the City or other public entity, including, but not limited to street
improvements (including roads, curbs, gutters, culverts, sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements), traffic and safety
controls, retaining walls, park and recreation improvements and facilities, trails, open space,
landscaping, drainage improvements (including detention and retention ponds, trickle channels,
and other drainage facilities), irrigation system improvements (including wells, pumps, storage
facilities, and distribution facilities), and all necessary equipment and appurtenances incident
thereto.
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2. Fire Protection. The District shall have the power and authority to plan, design,
acquire, construct, install, relocate, redevelop,and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
3. Construction Standards. The District will ensure that the Public Improvements
are designed and constructed in accordance with the standards and specifications of the City and
of other governmental entities having proper jurisdiction and of those special districts that
qualify as “interested parties” under Section 32-1-204(1), C.R.S., as applicable. The District will
obtain the City’s approval of civil engineering plans and will obtain applicable permits for
construction and installation of Public Improvements prior to performing such work.
4. Issuance of Privately Placed Debt. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
5. Inclusion Limitation. The Districts shall not include within any of their
boundaries any property outside the Service Area without the prior written consent of the City.
The Districts shall not include within any of its boundaries any property inside the inclusion area
boundaries without the prior written consent of the City except upon petition of the fee owner or
owners of 100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
6.Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
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payment of Debt of such proposed districts will not any time exceed the Maximum Debt Mill
Levy of the Districts.
7. Initial Debt. On or before the effective date of approval by the City of an
Approved Development Plan (as defined in the Service Plan), the District shall not: (a) issue any
Debt; nor (b) impose a mill levy for the payment of Debt by direct imposition or by transferof
funds from the operating fund to the Debt service funds; nor (c) impose and collect any fees used
for the purpose of repayment of Debt.
8. Total Debt Issuance. The Districts shall not issue Debt in excess Twenty-One
Million Dollars ($21,000,000) in the aggregate. Any Debt, issued with a pledge or which results
in a pledge, that exceeds the Maximum Debt Mill Levy and the Maximum Debt Mill Levy
Imposition Term, shall be deemed a material modification of the Service Plan pursuant to
Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless and until such
material modification has been approved by the City as part of a Service Plan Amendment.
9. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, and/or for operations and maintenance. No Fee
related to the funding of costs of a capital nature shall be authorized to be imposed upon or
collected from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the
restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable
Property for the purpose of funding operation and maintenance costs of the Districts.
10. Bankruptcy. All of the limitations contained in the Service Plan, including, but
not limited to, those pertaining to the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term have been established under the authority of the City to approve a Service
Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such
limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law, included in the
“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11
U.S.C. Section 903), and are also included in the “regulatory or electoral approval necessary
under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy
Plan under Bankruptcy Code Section 943(b)(6).
11. Service Plan Amendment Requirement. Actions of the District which violate the
limitations set forth in Sections V.A.1-9 or VII.B-G of the Service Plan shall be deemed to be
material modifications to the Service Plan and the City shall be entitled to all remedies available
under State and local law to enjoin such actions of the District.
12. Multiple District Structure. It is anticipated that the Districts, collectively, will
undertake the financing and construction of the improvements contemplated herein.
Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt service
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matters, which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
13. Annual Report. The District shall be responsible for submitting an annual report
to the City Manager no later than August 1st of each year following the year in which the Order
and Decree creating the District has been issued, pursuant to the City Code and containing the
information set forth in Section VIII of the Service Plan.
14. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the
maximum mill levy the District is permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows:
(a) For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 of the Service Plan; provided that if, on or after
January 1, 2004, 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 decreased to reflect such changes, such increases or decreases to be
determined by the Board in good faith (such determination to be binding and final) so that to the
extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes
occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes.
For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a
change in the method of calculating assessed valuation.
(b) For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the Debt service on such Debt, without limitation of rate.
(c) For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 of the Service Plan, so that the District is entitled to pledge to its payment an
unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by
such unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to
assessed ratio. All Debt issued by the District must be issued in compliance with the
requirements of Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
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The Maximum Debt Mill Levy shall not apply to the District’s Operations and
Maintenance Mill Levy for the provision of operation and maintenance services to the District’s
taxpayers and service users.
15. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy
for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt)
on any single property developed for residential uses which exceeds forty (40) years after the
year of the initial imposition of such mill levy unless a majority of the Board of Directors of the
District are residents of the District and have voted in favor of 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.
16. Notices. All notices, demands, requests,or other communications to be sent by
one party to the other hereunder or required by law shall be in writing and shall be deemed to
have been validly given or served by delivery of same in person to the address or by courier
delivery, via United Parcel Service or other nationally recognized overnight air courier service,
or by depositing same in the United States mail, postage prepaid, addressed as follows:
To the District: CSUP Metropolitan District No. 2
Address:__________________
__________________
__________________
Attn: __________________
Phone: __________________
Fax: __________________
Email: __________________
To the City: City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Attn: __________________, City Attorney
Phone: __________________
Fax: __________________
Email: __________________
All notices, demands, requests or other communications shall be effective upon
such personal delivery or one (1) business day after being deposited with United Parcel Service
or other nationally recognized overnight air courier service or three (3) business days after
deposit in the United States mail. By giving the other party hereto at least ten (10) days written
notice thereof in accordance with the provisions hereof, each of the Parties shall have the right
from time to time to change its address.
17. Amendment. This Agreement may be amended, modified, changed, or terminated
in whole or in part only by a written agreement duly authorized and executed by the Parties
hereto and without amendment to the Service Plan.
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18. Assignment. Neither Party hereto shall assign any of its rights nor delegate any of
its duties hereunder to any person or entity without having first obtained the prior written consent
of the other Party, which consent will not be unreasonably withheld. Any purported assignment
or delegation in violation of the provisions hereof shall be void and ineffectual.
19. Default/Remedies. In the event of a breach or default of this Agreement by any
Party, the non-defaulting Party shall be entitled to exercise all remedies available at law or in
equity, specifically including suits for specific performance and/or monetary damages. In the
event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable
attorneys' fees.
20. Governing Law and Venue. This Agreement shall be governed and construed
under the laws of the State of Colorado.
21. Inurement. Each of the terms, covenants and conditions hereof shall be binding
upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
22. Integration. This Agreement constitutes the entire agreement between the Parties
with respect to the matters addressed herein. All prior discussions and negotiations regarding the
subject matter hereof are merged herein.
23. Parties Interested Herein. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon, or to give to, any person other than the District and
the City any right, remedy, or claim under or by reason of this Agreement or any covenants,
terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions
in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive
benefit of the District and the City.
24. Severability. If any covenant, term, condition, or provision under this Agreement
shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of
such covenant, term, condition, or provision shall not affect any other provision contained
herein, the intention being that such provisions are severable.
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which shall constitute one and the same document.
26. Paragraph Headings. Paragraph headings are inserted for convenience of
reference only.
27. Defined Terms. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Service Plan.
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SIGNATURE PAGES TO INTERGOVERNMENTAL AGREEMENT
CSUP METROPOLITAN DISTRICT NO. 2
By:
President
Attest:
Secretary
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CITY OF PUEBLO, COLORADO
By:
HEATHER GRAHAM, Mayor
ATTEST:
___________________________________
_______________, City Clerk
APPROVED AS TO FORM:
___________________________________
__________________, City Attorney
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SERVICE PLAN
FOR
CSUPMETROPOLITAN DISTRICTNO. 3
PUEBLO,COLORADO
Prepared by
McGEADY BECHERCORTESE WILLIAMS P.C.
th
450 E. 17 Ave., Suite 400
Denver, CO 80203-1254
Submitted: June 3, 2025
Approved: August 11, 2025
Initials: _____
TABLE OF CONTENTS
I.INTRODUCTION...............................................................................................................1
A. Purpose and Intent....................................................................................................1
B.Need for the Districts. ..............................................................................................1
C. Objective of the City Regarding the District’s Service Plan. ..................................1
II. DEFINITIONS .....................................................................................................................2
III. BOUNDARIES ....................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ..4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES........4
A. Types of Improvements ...........................................................................................4
1. Street Improvements....................................................................................5
2. Water Improvements ....................................................................................5
3. Sanitation Improvements .............................................................................5
4. Safety Protection Improvements..................................................................5
5. Park and Recreation Improvements .............................................................5
6. Transportation Improvements......................................................................6
7. Fire Protection ..............................................................................................6
B.Other Powers. ...........................................................................................................6
1. Operations and Maintenance........................................................................6
2. Security Services ..........................................................................................6
3. Covenant Enforcement.................................................................................6
4. Phasing; Deferral .........................................................................................6
5. Service Plan Amendment.............................................................................6
6. Additional Services......................................................................................7
7. Subdistricts ...................................................................................................7
8. Special Improvement District ......................................................................7
C.Construction Standards Limitation ..........................................................................7
D. Inclusion Limitation .................................................................................................7
E. Overlap Limitation ...................................................................................................7
F. Fee Limitation..........................................................................................................7
G. Total Debt Issuance Limitation ................................................................................7
H. Privately Placed Debt Limitation .............................................................................8
I. Bankruptcy Limitation.............................................................................................8
J. Intergovernmental Agreements ................................................................................8
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS .........................................................9
VII.FINANCIAL PLAN.............................................................................................................9
A. General. ....................................................................................................................9
B.Maximum Voted Interest Rate and Maximum Underwriting Discount..................9
C. Maximum Debt Mill Levy. ....................................................................................10
D.Maximum Debt Mill Levy Imposition Term.........................................................10
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E. Debt Repayment Sources. ......................................................................................11
F.Security for Debt....................................................................................................11
G. Debt Instrument Disclosure Requirement ..............................................................11
H. District’s Operating Costs. .....................................................................................11
VIII. ANNUAL REPORT ..........................................................................................................12
A. General. ..................................................................................................................12
B. Reporting of Significant Events. ............................................................................12
IX. DISSOLUTION .................................................................................................................13
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT ........................................13
XI. CONCLUSION ..................................................................................................................13
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LIST OF EXHIBITS
EXHIBIT A-1 Initial District Boundary Legal Description
EXHIBIT A-2 Inclusion Area Boundary Legal Description
EXHIBIT B Vicinity Map
EXHIBIT C-1 Initial District Boundary Map
EXHIBIT C-2 Inclusion Area Boundary Map
EXHIBIT D Service Plan Intergovernmental Agreement with the City of Pueblo
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I.INTRODUCTION
A.Purpose and Intent.
CSU Pueblo Development Project is a residential/commercial/mixed-use
development (the “Project”) in Pueblo, Colorado (the “City”). The Project comprises
approximately One Hundred Sixteen(116) acres. The Project is currently owned by the
Colorado State University System and to be developed by a developer selected by the owner (the
“Developer”).
CSUP Metropolitan District No. 3 (the “District”) is an independent unit 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, its activities are subject to review by theCityonly insofar
as they may deviate in a material matter from the requirements of the Service Plan. It is intended
that the District will provide a part or all of the Public Improvements(defined below) for the use
and benefit of all anticipated inhabitants and taxpayers of the District. The primary purposes of
the District will be to finance the construction of these Public Improvements and provide
ongoing operation and maintenance services as more specifically set forth in this Service Plan.
The District is being organized concurrently with the organization of District No.
1 and District No. 2. The multiple district structure is anticipated to provide flexibility to finance
and operate and maintain the public improvements needed to serve several different types of
future property uses, such as residential, commercial, and mixed-use property. Under the
multiple district structure, it is anticipated that the Districts, collectively, will undertake the
financing and construction of the improvements contemplated in this Service Plan. Specifically,
the Districts shall enter into an Intergovernmental Agreement related to debt service matters,
which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
B. Need for the Districts.
There are currently no other governmental entities, including the City, located in
the immediate vicinity of the Districts that consider it desirable, feasible or practical to undertake
the planning, design, acquisition, construction, installation, relocation,redevelopment, financing,
operation and maintenance of the Public Improvements needed for the Project. Formation of the
Districts is therefore necessary in order for the Public Improvements required for the Project to
be provided in the most economic manner possible.
C.Objective of the City Regarding the District’s Service Plan.
The City’s objective in approving the Service Plan is to authorize the District to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment and financing of the Public Improvements from the proceeds of Debt to be issued
by the Districts and other legally available revenues of the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy
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Imposition Term for residential properties and at a mill levy no higher than the Maximum Debt
Mill Levy andFeesand any other legally available revenue. Debt which is issued within these
parameters and, as further described in the Financial Plan, will insulate property owners from
excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and
reasonable discharge of the Debt.
The primary purpose of the Districts is to provide for the Public Improvements
associated with development and, if applicable, regional needs, and operate and maintain Public
Improvements not accepted by the City, other appropriate jurisdiction or an owners’ association.
II. DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Approved Development Plan: means a development plan, subdivision improvement
agreement or other document approved by the Citythat, among other things, identifies
Public Improvements necessary for facilitating development for property within the
Service Area.
Board: means the board of directors of the District.
Bond, Bonds or Debt: means bonds or other obligations for the payment of which the
District has promised to impose an ad valorem property tax mill levy, or impose and
collect Fee revenue.
City Council: means the City Council of the City of Pueblo, Colorado.
District No. 1: means CSUP Metropolitan District No. 1.
District No. 2: means CSUP Metropolitan District No. 2.
District No. 3: means CSUP Metropolitan District No. 3.
Districts: means District No. 1, District No. 2, and District No. 3 collectively.
End User: means any owner, or tenant of any owner, of any taxable improvement within
the Districts who is intended to become burdened by the imposition of ad valorem
property taxes subject to the Maximum Debt Mill Levy. By way of illustration, a
resident homeowner, renter, commercial property owner, or commercial tenant is an End
User. The business entity that constructs homes or commercial structures is not an End
User.
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
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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 Debt.
Fees: means any fee imposed and/or received by the District for services, programs, or
facilities provided by the District.
Financial Plan: means the Financial Plan described in SectionVII which describes
(i) how the Public Improvements are to be financed; (ii) how the Debt is expected to be
incurred; and (iii) the estimated operating revenue derived from property taxes for the
first budget year.
Inclusion Area Boundaries: means the boundaries of the area legally described in
Exhibit A-2 and depicted on the Inclusion Area Boundary Map.
Inclusion Area Boundary Map: means the map attached hereto as ExhibitC-2, depicting
the property proposed for inclusion within the District.
Initial District Boundaries: means the boundaries of the area legally described in Exhibit
A-1 and depicted on the Initial District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C-1, depicting
the District’s initial boundaries.
Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to
impose for payment of Debt as set forth in Section VII.Cbelow.
Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of
a mill levy on a particular property developed for residential uses as set forth in Section
VII.D below
Project: means the CSU Pueblo Development Project.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed as
generally described in the Special District Act, except as specifically limited in SectionV
below to serve the future taxpayers and inhabitants of the Service Area as determined by
the Board.
Service Area: means, collectively,the property within the Initial District Boundaries and
the Inclusion Area Boundaries.
Service Plan: means this service plan for the District approved by the County.
Service Plan Amendment: means an amendment to the Service Plan approved by the
City in accordance with applicable law.
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S
pecial District Act: means Section 32-1-101, etseq., of the Colorado Revised Statutes,
as amended from time to time.
State: means the State of Colorado.
Taxable Property: means real property subject to ad valorem taxes imposed by the
District.
Total Debt Issuance Limit: means the maximum amount of general obligation Debt the
Districts, in aggregate, may issue, which amount shall be Twenty-One MillionDollars
($21,000,000).
III.BOUNDARIES
The Initial District Boundaries include approximately eight hundredths (0.08) acres, and
the total area proposed to be in the Inclusion Area Boundaries is approximately One Hundred
Sixteen (116) acres. Legal descriptions of the Initial District Boundaries and the Inclusion Area
Boundaries are attached hereto as Exhibit A-1 and Exhibit A-2, respectively. A vicinity map is
attached hereto as Exhibit B. A map of the Initial District Boundaries is attached hereto as
Exhibit C-1, and a map of the Inclusion Area Boundaries is attached hereto as Exhibit C-2. It is
anticipated that the District’s boundaries may change from time to time as it undergoes
inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501,
et seq., C.R.S., subject to the limitations set forth in ArticleV below.
IV.PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED
VALUATION
The Service Area consists of approximately One Hundred Sixteen (116) acres of
land of residential, commercial, and mixed-use property. The current assessed valuation of the
Service Area is $0.00 for purposes of this Service Plan and, at build out, is expected to be
sufficient to reasonably discharge the Debt under the Financial Plan. The population of the
Districts at build-out is estimated to be approximately eight hundred twenty (820) people.
Approval of this Service Plan by the City does not imply approval of the development of
a specific area within the District, nor does it imply approval of the number of residential units or
the total site/floor area of commercial or industrial buildings identified in this Service Plan or
any of the exhibits attached thereto, unless the same is contained within an Approved
Development Plan.
V.DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A.Types of Improvements. The District shall have the power and authority to
provide for the planning, design, acquisition, construction, installation, relocation,
redevelopment, financing, operation, and maintenance of Public Improvements, within and
without the boundaries of the District, as such power and authority is described in the Special
District Act, and other applicable statutes, common law, and the Constitution. Without limiting
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the foregoing, following is a general description of the types of Public Improvements and
services the District shall be authorized to provide.
1. Street Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate,and maintain street and
roadway improvements including, but not limited to, related landscaping, curbs, gutters,
sidewalks, culverts, and other drainage facilities, pedestrian ways, bridges, overpasses,
interchanges, signage, median islands, alleys, parking facilities, paving, lighting, grading and
irrigation structures, together with all necessary, incidental and appurtenant facilities, land and
easements, and all extensions of and improvements to said facilities. It is anticipated that street
improvements not accepted bythe City or other appropriate jurisdiction or an owners’
association will be owned and maintained by the District.
2. Water Improvements. The District shall have the power and authority to
plan, design, acquire, construct, install, relocate, redevelop, operate and maintain potable, non-
potable, and irrigation water systems including, but not limited to, transmission lines, distribution
mains and laterals, storage and treatment facilities, water right acquisition, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities. It is anticipated that water improvements not accepted by the
City or other appropriate jurisdiction or an owners’ association will be owned and maintained by
the District.
3. Sanitation Improvements. The District shall have the power and authority
to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain sanitation
improvements including, but not limited to, sanitary sewer transmission lines, wastewater
treatment, storm drainage, detention/retention ponds, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that sanitation improvements not accepted by the City or other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
4. Safety Protection Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
traffic and safety controls and devices on streets, highways and railroad crossings including, but
not limited to, signalization, signage and striping, together with all necessary, incidental and
appurtenant facilities, land and easements, and all extensions of and improvements to said
facilities. It is anticipated that safety protection improvements not accepted by the City orother
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
5. Park and Recreation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain
park and recreation facilities and programs including, but not limited to, parks, pedestrian ways,
bike paths, bike storage facilities, signage, interpretive kiosks and facilities, open space,
landscaping, cultural activities, community centers, recreational centers, water bodies, wildlife
preservation and mitigation areas, irrigation facilities, playgrounds, pocket parks, swimming
pools, and other active and passive recreational facilities, together with all necessary, incidental
and appurtenant facilities, land and easements, and all extensions of and improvements to said
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facilities. It is anticipated that park and recreation improvements not accepted bythe City, other
appropriate jurisdiction or an owners’ association will be owned and maintained by the District.
6. Transportation Improvements. The District shall have the power and
authority to plan, design, acquire, construct, install, relocate, redevelop, operate and maintain a
system to transport the public by bus, rail or any other means of conveyance, or any combination
thereof, including, but not limited to, bus stops and shelters, park-and-ride facilities, parking
facilities, bike storage facilities, together with all necessary, incidental and appurtenant facilities,
land and easements, and all extensions of and improvements to said facilities. It is anticipated
that transportation improvements not accepted by the City or other appropriate jurisdiction or an
owners’ association will be owned and maintained by the District.
7. Fire Protection. The District shall have the power and authority to plan,
design, acquire, construct, install, relocate, redevelop and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
B.Other Powers.
1. Operations and Maintenance. The District shall be authorized to operate
and maintain Public Improvements not accepted by the City or other governmental entities
having proper jurisdiction or to an owners’ association. To the extent the District retains
ownership of any Public Improvements, the District shall be authorized to enter into one or more
agreements with owners’ associations pursuant to which such owners’ association(s) may
operate and maintain such Public Improvements.
2. Security Services. Subject to the provisions of Section 32-1-1004(7),
C.R.S., the District shall have the power to furnish security services within the Service Area.
3. Covenant Enforcement. Subject to the provisions of Section 32-1-
1004(8), C.R.S., the District shall have the power to furnish covenant enforcement and design
review services within the Service Area.
4. Phasing; Deferral. Except as may be limited herein, the District shall have
the right, without having to amend this Service Plan, to defer, delay, reschedule, re-phase or
restructure the financing and/or construction of the Public Improvements to accommodate the
pace of development within the Project, resource availability and the funding capability of the
District.
5. Service Plan Amendment. The District shall have the authority to amend
or modify this Service Plan, as needed, subject to the applicable statutory procedures.
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6. Additional Services. Except as specifically provided herein, the District
shall be authorized to provide such additional services and exercise such powers as are expressly
or impliedly granted by Colorado law.
7. Subdistricts. The District shall have the authority pursuant to Section 32-
1-1101(1)(f), C.R.S., and Sections 32-1-1101(1.5)(a)-(e), C.R.S., to divide the District into one
or more areas consistent with the services, programs and facilities to be furnished therein. The
exercise of such authority shall not be deemed a material modification of this Service Plan.
8. Special Improvement District. The District shall have the authority
pursuant to Section 32-1-1101.7, C.R.S., to establish one or more special improvement districts
within the boundaries ofthe District, including the power to levy assessments.
C.Construction Standards Limitation. The District will ensure that the Public
Improvements are designed and constructed in accordance with the applicable standards and
specifications of the City and of other governmental entities having proper jurisdiction.
D. Inclusion Limitation. The District shall have the authority to include within its
boundaries any property within the Service Area without the prior written consent of the City.
The District shall not include within any of its boundaries any property outside the Service Area
without the prior written consent of the City except upon petition of the fee owner or owners of
100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
E. Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill
Levy of the Districts.
F. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, or for operations and maintenance. No Fee related
to the funding of costs of a capital nature shall be authorized to be imposed upon or collected
from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the restrictions in this
definition shall not apply to any Fee imposed upon or collected from Taxable Property for the
purpose of funding operation and maintenance costs of the Districts.
G. Total Debt Issuance Limitation. The Districts shall not issue Debt in excess of the
Total Debt Issuance Limit; provided, however, any refunding Debt shall not count against the
Total Debt Issuance Limit. Any Debt, issued with a pledge or which results in a pledge, that
exceeds the Maximum Debt Mill Levy shall be deemed a material modification of this Service
Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless
and until such material modification has been approved by the City as part of a Service Plan
Amendment.
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Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum
Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material
modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an
authorized issuance of Debt unless and until such material modification has been approved by
the City as part of a Service Plan Amendment.
H. Privately Placed Debt Limitation. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
I. Bankruptcy Limitation. All of the limitations contained in this Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt
Mill Levy Imposition Term and the Fees have been established under the authority of the City to
approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly
intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the “political or governmental powers” reserved to the State under the U.S.
Bankruptcy Code (11 U.S.C. Section 903, and are also included in the “regulatory or electoral
approval necessary under applicable nonbankruptcy law” as required for confirmation of a
Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6).
J. Intergovernmental Agreements. The District shall have the authority to enter into
such intergovernmental agreements as may be necessary or appropriate to perform the functions
for which the District has been organized, including the provision of Public Improvements
required by any Approved Development Plan. It is anticipated that the Districts, collectively,
will undertake the financing and construction of the improvements contemplated in this Service
Plan. Specifically, the Districts shall enter into an Intergovernmental Agreementrelated to debt
service matters, which shall govern the relationships between and among the Districts with
respect to the financing, installation and construction the improvements contemplated herein.
Each individual District shall have the responsibility to coordinate the operation and maintenance
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4899-2801-9023, v. 1
of improvements within its boundaries, including the decision on what mill levy to impose for
the provision of operation and maintenance services to its taxpayers and service users.
VI. ESTIMATE OF PUBLIC IMPROVEMENT COSTS
An estimate of the costs of the Public Improvements which may be planned for, designed,
acquired, constructed, installed, relocated, redeveloped, maintained or financed was prepared
based upon a preliminary engineering survey and estimates derived from the zoning on the
property in the Service Area and is approximately Eleven Million Seven Hundred Fifteen
Thousand Five Hundred Thirty Dollars ($11,715,530) in 2025 dollars. All construction cost
estimates are based on the assumption that construction conforms to applicable local, State or
Federal requirements. Actual Public Improvements to be constructed and their costs may vary,
and the Board shall have the discretion to construct any Public Improvements authorized in an
Approved Development Plan and the actual costs may increase or decrease as development
occurs without the necessity of amending this Service Plan.
VII. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation and/or redevelopment of the Public Improvements from its
revenues and by and through the proceeds of Debt to be issued by the District. The Financial
Plan for the District shall be to issue such Debt as the District can reasonably pay from revenues
derived within the Maximum Debt Mill Levy Imposition Term and from the Maximum Debt
Mill Levy, Fees and other legally available revenues. The total Debt that the Districts shall be
permitted to issue shall not exceed the Total Debt Issuance Limit and shall be permitted to be
issued on a schedule and in such year or years as the District determines shall meet the needs of
the Financial Plan referenced above and phased to serve development as it occurs. All bonds and
other Debt issued by the District may be payable from any and all legally available revenues of
the District, including, but not limited to, general ad valorem taxes to be imposed upon all
Taxable Property of the District (and associated specific ownership tax revenues) and Fees. The
District will also 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 to time, and to receive revenue from privately imposed public
improvement fees, if applicable and revenue received through agreements with other
governmental entities.
Prior to the issuance of Debt, it is anticipated that the Developer may advance
funds to the District to pay the organizational costs of the District and costs for constructing and
installing Public Improvements. The District shall be authorized to reimburse such Developer
advances with interest from Debt proceeds or other legally available revenues.
B.Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. In the event of a default, the proposed maximum interest rate on any Debt is not
expected to exceed fifteen percent (15%). The proposed maximum underwriting discount will be
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4899-2801-9023, v. 1
three percent (3%). Debt, when issued, will comply with all relevant requirements of this
Service Plan, State law and Federal law as then applicable to the issuance of public securities.
C.Maximum Debt Mill Levy.
The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is
permitted to impose upon the Taxable Property of the District for payment of Debt, and shall be
determined as follows:
1. For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 below; provided that if, on or after January 1, 2004, 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
decreased to reflect such changes, such increases or decreases to be determined by the Board in
good faith (such determination to be binding and final) so that to the extent possible, the actual
tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004,
are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing,
a change in the ratio of actual valuation shall be deemed to be a change in the method of
calculating assessed valuation.
2. For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the debt service on such Debt, without limitation of rate.
3. For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 above, so that the District is entitled to pledge to its payment an unlimited ad
valorem mill levy, the District may provide that such Debt shall remain secured by such
unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to assessed
ratio. All Debt issued by the District must be issued in compliance with the requirements of
Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized
into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as
used herein shall be deemed to refer to the District and to each such subdistrict separately, so that
each of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
D. Maximum Debt Mill Levy Imposition Term.
The District shall not impose a levy for repayment of any and all Debt (or use the
proceeds of any mill levy for repayment of Debt) on any single property developed for
residential uses which exceeds forty (40) years after the year of the initial imposition of such mill
levy unless a majority of the Board of Directors of the District are residents of the District and
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4899-2801-9023, v. 1
have voted in favor of 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.; etseq.
E. Debt Repayment Sources.
The District may impose a mill levy as a primary source of revenue for repayment
of debt service and for operations and maintenance. The District may also rely upon various
other revenue sources authorized by law. At the District’s discretion, these may include the
power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(l),
C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District
exceed the Maximum Debt Mill Levy, except as provided in Section VII.C.2 above or, for
residential property within the District, the Maximum Debt Mill Levy Imposition Term.
F. Security for Debt.
The District 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 District’s obligations; nor shall
anything in the Service Plan be construed so as to create any responsibility or liability on the part
of the City in the event of default by the District in the payment of any such obligation.
G. Debt Instrument Disclosure Requirement. In the text of each Bond and any other
instrument representing and constituting Debt, the District shall set forth a statement in
substantially the following form:
By acceptance of this instrument, the owner of this Bond agrees
and consents to all of the limitations in respect of the payment of
the principal of and interest on this Bond contained herein, in the
resolution of the District authorizing the issuance of this Bond and
in the Service Plan for creation of 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.
H. District’s Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the District’s organization and initial
operations, are anticipated to be Seventy-Five Thousand Dollars ($75,000), which will be
eligible for reimbursement from Debt proceeds.
In addition to the capital costs of the Public Improvements, the District will
require operating funds for administration and to plan and cause the Public Improvements to be
constructed and maintained. The first year’s operating budget is estimated to be Fifty Thousand
Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues.
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The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the
District’s ability to increase its mill levy as necessary for provision of operation and maintenance
services to its taxpayers and service users. It is anticipated that the Developer will advance funds
to the District to pay its operating costs until such time as the District has sufficient revenue from
its operation and maintenance mill levy. The District shall be authorized to reimburse the
Developer for such advances with interest.
VIII. ANNUAL REPORT
A.General.
The District shall be responsible for submitting an annual report to the City no
later than August 1st of each year following the year in which the Order and Decree creating the
District has been issued.
B.Reporting of Significant Events.
The annual report shall include information as to any of the following:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the prior year.
2. Intergovernmental Agreements either entered into or proposed as of
December 31 of the prior year.
3. A summary of any litigation which involves the District Public
Improvements as of December 31 of the prior year.
4. Status of the District’s construction of the Public Improvements as of
December 31 of the prior year.
5. A list of all facilities and improvements constructed by the District that
have been dedicated to and accepted by the City as of December 31 of the prior year.
6. The assessed valuation of the District for the current year.
7. Current year budget.
8. Audit of the District’s financial statements, for the year ending December
31 of the previous year, prepared in accordance with generally accepted accounting principles or
audit exemption, if applicable.
9. Notice of any uncured events of default by the District, which continue
beyond a ninety (90) day period, under any Debt instrument.
10. Any inability of the District to pay its obligations as they come due, in
accordance with the terms of such obligations, which continue beyond a ninety (90) day period.
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IX. DISSOLUTION
In no event shall the District be dissolveduntil the District has provided for the payment
or discharge of all of their outstanding indebtedness and other financial obligations as required
pursuant to State statutes.
X. SERVICE PLAN INTERGOVERNMENTAL AGREEMENT
The form of the service plan intergovernmental agreement required by the City, relating
to the limitations imposed on the District’s activities, is attached hereto as Exhibit D. The
District shall approve the intergovernmental agreement in the form attached as Exhibit D at its
first Board meeting after its organizational election. Failure of the District to execute the
intergovernmental agreement as required herein shall constitute a material modification and shall
require a Service Plan Amendment. The City Council shall approve the intergovernmental
agreement in the form attached as Exhibit D at the public hearing approving the Service Plan.
XI. CONCLUSION
It is submitted that this Service Plan for the District, as required by Section 32-1-203(2),
C.R.S., establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2. The existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries;
4. The area to be included in the District does have, and will have, the
financial ability to discharge the proposed indebtedness on a reasonable basis;
5. Adequate service is not, and will not be, available to the area through the
City/Town/County or other existing municipal or quasi-municipal corporations, including
existing special districts, within a reasonable time and on a comparable basis;
6. The facility and service standards of the District are compatible with the
facility and service standards of the City within which the special district is to be located and
each municipality which is an interested party under Section 32-1-204(1), C.R.S;
7. The proposal is in substantial compliance with a comprehensive plan
adopted by the City;
8. The proposal is in compliance with any duly adopted City, regional or
state long-range water quality management plan for the area; and
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9. The creation of the District is in the best interests of the area proposed to
be served.
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EXHIBIT A-1
Initial District Boundary Legal Description
A-1-1
4899-2801-9023, v. 1
EXHIBIT A-2
Inclusion Area Boundary Legal Description
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4899-2801-9023, v. 1
EXHIBIT B
Vicinity Map
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EXHIBIT C-1
Initial District Boundary Map
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EXHIBIT C-2
Inclusion Area Boundary Map
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4899-2801-9023, v. 1
EXHIBIT D
SERVICE PLAN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF PUEBLO, COLORADO
AND
CSUP METROPOLITAN DISTRICT NO. 3
THIS SERVICE PLAN INTERGOVERNMENTAL AGREEMENT is made and
entered into as of this ____ day of ___________, ___________, by and between the CITY OF
PUEBLO, a home-rule municipal corporation of the State of Colorado (“City”), and CSUP
METROPOLITAN DISTRICT NO. 3, a quasi-municipal corporation and political subdivision
of the State of Colorado (the “District”). The City and the District are collectively referred to as
the Parties.
RECITALS
WHEREAS, the District was organized to provide those services and to exercise powers
as are more specifically set forth in the District’s Service Plan approved by the City on August
11, 2025 (“Service Plan”); and
WHEREAS, the Service Plan makes reference to the execution of an intergovernmental
agreement between the City and the District; and
WHEREAS, the City and the District have determined it to be in the best interests of their
respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Operations and Maintenance. The Districts shall dedicate the Public
Improvements (as defined in the Service Plan) to the City or other appropriate jurisdiction or
owner’s association in a manner consistent with the Approved Development Plan and other rules
and regulations of the City and applicable provisions of the City Code. The Districts shall be
authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise
required to be dedicated to the City or other public entity, including, but not limited to street
improvements (including roads, curbs, gutters, culverts, sidewalks, bridges, parking facilities,
paving, lighting, grading, landscaping, and other street improvements), traffic and safety
controls, retaining walls, park and recreation improvements and facilities, trails, open space,
landscaping, drainage improvements (including detention and retention ponds, trickle channels,
and other drainage facilities), irrigation system improvements (including wells, pumps, storage
facilities, and distribution facilities), and all necessary equipment and appurtenances incident
thereto.
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4899-2801-9023, v. 1
2. Fire Protection. The District shall have the power and authority to plan, design,
acquire, construct, install, relocate, redevelop,and (on a supplemental basis) operate and
maintain improvements for fire protection and emergency response services, together with all
necessary, incidental and appurtenant facilities, land and easements, and all extensions of and
improvements to said facilities; provided, however, the District shall not use its fire protection
powers to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or
maintain fire protection facilities or services, unless such facilities and services are provided
pursuant to an intergovernmental agreement with the City. The authority to plan for, design,
acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements
installed as part of the water system shall not be limited by this provision. It is anticipated that
fire protection and emergency response services will be provided by the Pueblo Fire Department.
3. Construction Standards. The District will ensure that the Public Improvements
are designed and constructed in accordance with the standards and specifications of the City and
of other governmental entities having proper jurisdiction and of those special districts that
qualify as “interested parties” under Section 32-1-204(1), C.R.S., as applicable. The District will
obtain the City’s approval of civil engineering plans and will obtain applicable permits for
construction and installation of Public Improvements prior to performing such work.
4. Issuance of Privately Placed Debt. Prior to the issuance of any privately placed
Debt, the District shall obtain the certification of an External Financial Advisor 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 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.
5. Inclusion Limitation. The Districts shall not include within any of their
boundaries any property outside the Service Area without the prior written consent of the City.
The Districts shall not include within any of its boundaries any property inside the inclusion area
boundaries without the prior written consent of the City except upon petition of the fee owner or
owners of 100 percent of such property as provided in Section 32-1-401(1)(a), C.R.S.
6.Overlap Limitation. The boundaries of the Districts shall not overlap unless the
aggregate mill levy for payment of Debt of the overlapping Districts will not at any time exceed
the Maximum Debt Mill Levy of the Districts. Additionally, the Districts shall not consent to the
organization of any other district organized under the Special District Act within the Service
Area which will overlap the boundaries of the Districts unless the aggregate mill levy for
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4899-2801-9023, v. 1
payment of Debt of such proposed districts will not any time exceed the Maximum Debt Mill
Levy of the Districts.
7. Initial Debt. On or before the effective date of approval by the City of an
Approved Development Plan (as defined in the Service Plan), the District shall not: (a) issue any
Debt; nor (b) impose a mill levy for the payment of Debt by direct imposition or by transferof
funds from the operating fund to the Debt service funds; nor (c) impose and collect any fees used
for the purpose of repayment of Debt.
8. Total Debt Issuance. The Districts shall not issue Debt in excess Twenty-One
Million Dollars ($21,000,000) in the aggregate. Any Debt, issued with a pledge or which results
in a pledge, that exceeds the Maximum Debt Mill Levy and the Maximum Debt Mill Levy
Imposition Term, shall be deemed a material modification of the Service Plan pursuant to
Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless and until such
material modification has been approved by the City as part of a Service Plan Amendment.
9. Fee Limitation. Each of the Districts may impose and collect Fees as a source of
revenue for repayment of debt, capital costs, and/or for operations and maintenance. No Fee
related to the funding of costs of a capital nature shall be authorized to be imposed upon or
collected from Taxable Property owned or occupied by an End User 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. Notwithstanding any of the foregoing, the
restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable
Property for the purpose of funding operation and maintenance costs of the Districts.
10. Bankruptcy. All of the limitations contained in the Service Plan, including, but
not limited to, those pertaining to the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term have been established under the authority of the City to approve a Service
Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such
limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law, included in the
“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11
U.S.C. Section 903), and are also included in the “regulatory or electoral approval necessary
under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy
Plan under Bankruptcy Code Section 943(b)(6).
11. Service Plan Amendment Requirement. Actions of the District which violate the
limitations set forth in Sections V.A.1-9 or VII.B-G of the Service Plan shall be deemed to be
material modifications to the Service Plan and the City shall be entitled to all remedies available
under State and local law to enjoin such actions of the District.
12. Multiple District Structure. It is anticipated that the Districts, collectively, will
undertake the financing and construction of the improvements contemplated herein.
Specifically, the Districts shall enter into an Intergovernmental Agreement related to debt service
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4899-2801-9023, v. 1
matters, which shall govern the relationships between and among the Districts with respect to the
financing, installation and construction the improvements contemplated herein. Each individual
District shall have the responsibility to coordinate the operation and maintenance of
improvements within its boundaries, including the decision on what mill levy to impose for the
provision of operation and maintenance services to its taxpayers and service users.
13. Annual Report. The District shall be responsible for submitting an annual report
to the City Manager no later than August 1st of each year following the year in which the Order
and Decree creating the District has been issued, pursuant to the City Code and containing the
information set forth in Section VIII of the Service Plan.
14. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the
maximum mill levy the District is permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows:
(a) For the portion of any aggregate District’s Debt which exceeds fifty
percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such
portion of Debt shall be fifty (50) mills less the number of mills necessary to pay unlimited mill
levy Debt described in Section VII.C.2 of the Service Plan; provided that if, on or after
January 1, 2004, 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 decreased to reflect such changes, such increases or decreases to be
determined by the Board in good faith (such determination to be binding and final) so that to the
extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes
occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes.
For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a
change in the method of calculating assessed valuation.
(b) For the portion of any aggregate District’s Debt which is equal to or less
than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at
any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject
to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is
necessary to pay the Debt service on such Debt, without limitation of rate.
(c) For purposes of the foregoing, once Debt has been determined to be within
Section VII.C.2 of the Service Plan, so that the District is entitled to pledge to its payment an
unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by
such unlimited mill levy, notwithstanding any subsequent change in the District’s Debt to
assessed ratio. All Debt issued by the District must be issued in compliance with the
requirements of Section 32-1-1101, C.R.S. and all other requirements of State law.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
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The Maximum Debt Mill Levy shall not apply to the District’s Operations and
Maintenance Mill Levy for the provision of operation and maintenance services to the District’s
taxpayers and service users.
15. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy
for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt)
on any single property developed for residential uses which exceeds forty (40) years after the
year of the initial imposition of such mill levy unless a majority of the Board of Directors of the
District are residents of the District and have voted in favor of 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.
16. Notices. All notices, demands, requests,or other communications to be sent by
one party to the other hereunder or required by law shall be in writing and shall be deemed to
have been validly given or served by delivery of same in person to the address or by courier
delivery, via United Parcel Service or other nationally recognized overnight air courier service,
or by depositing same in the United States mail, postage prepaid, addressed as follows:
To the District: CSUP Metropolitan District No. 3
Address:__________________
__________________
__________________
Attn: __________________
Phone: __________________
Fax: __________________
Email: __________________
To the City: City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Attn: __________________, City Attorney
Phone: __________________
Fax: __________________
Email: __________________
All notices, demands, requests or other communications shall be effective upon
such personal delivery or one (1) business day after being deposited with United Parcel Service
or other nationally recognized overnight air courier service or three (3) business days after
deposit in the United States mail. By giving the other party hereto at least ten (10) days written
notice thereof in accordance with the provisions hereof, each of the Parties shall have the right
from time to time to change its address.
17. Amendment. This Agreement may be amended, modified, changed, or terminated
in whole or in part only by a written agreement duly authorized and executed by the Parties
hereto and without amendment to the Service Plan.
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18. Assignment. Neither Party hereto shall assign any of its rights nor delegate any of
its duties hereunder to any person or entity without having first obtained the prior written consent
of the other Party, which consent will not be unreasonably withheld. Any purported assignment
or delegation in violation of the provisions hereof shall be void and ineffectual.
19. Default/Remedies. In the event of a breach or default of this Agreement by any
Party, the non-defaulting Party shall be entitled to exercise all remedies available at law or in
equity, specifically including suits for specific performance and/or monetary damages. In the
event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable
attorneys' fees.
20. Governing Law and Venue. This Agreement shall be governed and construed
under the laws of the State of Colorado.
21. Inurement. Each of the terms, covenants and conditions hereof shall be binding
upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
22. Integration. This Agreement constitutes the entire agreement between the Parties
with respect to the matters addressed herein. All prior discussions and negotiations regarding the
subject matter hereof are merged herein.
23. Parties Interested Herein. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon, or to give to, any person other than the District and
the City any right, remedy, or claim under or by reason of this Agreement or any covenants,
terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions
in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive
benefit of the District and the City.
24. Severability. If any covenant, term, condition, or provision under this Agreement
shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of
such covenant, term, condition, or provision shall not affect any other provision contained
herein, the intention being that such provisions are severable.
25. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which shall constitute one and the same document.
26. Paragraph Headings. Paragraph headings are inserted for convenience of
reference only.
27. Defined Terms. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Service Plan.
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SIGNATURE PAGES TO INTERGOVERNMENTAL AGREEMENT
CSUP METROPOLITAN DISTRICT NO. 3
By:
President
Attest:
Secretary
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CITY OF PUEBLO, COLORADO
By:
HEATHER GRAHAM, Mayor
ATTEST:
___________________________________
_______________, City Clerk
APPROVED AS TO FORM:
___________________________________
__________________, City Attorney
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