Metropolitan District - General Explanation
In accordance with Section 32-104.5(3)(X), C.R.S., the following general explanation in plain, nontechnical language, is provided. This information is intended to be read in conjunction with all applicable legal requirements, governing documents, agreements, resolutions, and determinations of the Boards of Directors of the Districts.
1. A metropolitan district is a special district that provides any two or more of the following services:
(a) Fire protection;
(b) Mosquito control;
(c) Parks and recreation;
(d) Safety protection;
(e) Sanitation;
(f) Solid waste disposal facilities or collection and transportation of solid waste;
(g) Street improvement;
(h) Television relay and translation;
(i) Transportation; and
(j) Water.
2. In accordance with the Districts’ Service Plan, the Districts may provide public improvements and related operation and maintenance services within and without the boundaries of the Districts as such power and authority is described in the Special District Act, other applicable statutes, common law, and the Constitution of the State of Colorado, as the same currently exist and as may be amended from time to time in the future, subject to the following limitations:
Fire Protection Limitation. The Districts shall not be authorized without the prior consent of East Grand Fire Protection District No. 4 to provide fire protection facilities or services unless the facilities and services are provided pursuant to an intergovernmental agreement with the Town and the Fire Protection District No. 4. The authority for the Districts to provide for fire hydrants and related improvements installed as part of the water system shall not be limited by this provision.
As contemplated by the Districts’ Service Plan and by separate agreement among the Districts, District No. 1 will construct, operate and maintain public improvements and provide services on behalf of the Districts and District Nos. 2-5 provides funding for the costs associated with the provision of public improvements and services by District No. 1.
District No. 1 provides the following ongoing services on behalf of the Districts: operation and maintenance services of public improvements owned by District No. 1 and located within the boundaries of the Districts.
3. In accordance with the Districts’ Service Plan, the total amount of debt the Districts can incur to provide and pay for public infrastructure is as follows:
District Nos. 1, 2, 3, and 4 shall not issue Debt in excess of $90,000,000 in 2021 Dollars, adjusted annually pursuant to the Engineering News-Record Construction Cost Index, without Town approval.
District No. 5 shall not issue Debt in excess of $15,000,000 in 2021 Dollars adjusted annually pursuant to the Engineering News-Record Construction Cost Index, without Town approval.
4. In accordance with the Districts’ Service Plan, the following revenue may be used to pay for the Districts’ debt:
Each of the Districts may impose a mill levy on taxable property within its boundaries as a source of revenue for repayment of debt service. The Districts may also relay upon various other revenue sources authorized by law, including the power to assess fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(1), C.R.S. The Districts are also permitted to receive, spend and pledge to any Debt fees, assessments, taxes and charges which are collected by a retailer in the Districts on the sale of good or services by such retailer, including, without limitation, a lodging or use fee.
5. In accordance with the Districts’ Service Plan, the maximum mill levy the Districts may assess to pay for its debt is as follows:
The Maximum Debt Mill Levy shall be determined as follows:
(a) For the portion of any aggregate Debt which exceeds 50% of the District’s assessed valuation, the Maximum Debt Mill Levy for such portion of Debt shall be 60 mills for District No. 1, District No. 2, District No. 3, and District No. 4, and 15 mills for District No. 5 (not to exceed a total of 60 mills in the event the boundaries of any of the Districts overlap), less the number of mills necessary to pay unlimited mill levy Debt described below; provided that if, on or after January 1, 2021,there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut, abatement, the mill levy limitation applicable to such Debt may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board in good faith so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2021, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ration of actual valuation shall be deemed to be a change in the method of calculating assessed valuation.
(b) For the portion of any aggregate Debt which is equal to or less than 50% of the District’s assessed valuation, either on the date of issuance or 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 services on such Debt, without limitation of rate.
6. Residents within each District may serve on the Board of Directors of the District if they are eligible electors of the District. A resident is an eligible elector of the District if the resident lives within the boundaries of the District and is registered to vote in Colorado.