HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/05/2019 - RESOLUTION 2019-016 ADOPTING A REVISED POLICY FORAgenda Item 14
Item # 14 Page 1
AGENDA ITEM SUMMARY February 5, 2019
City Council
STAFF
Josh Birks, Economic Health Director
John Duval, Legal
SUBJECT
Resolution 2019-016 Adopting a Revised Policy for Reviewing Service Plans of Metropolitan Districts.
EXECUTIVE SUMMARY
The purpose of this item is to present several changes to the Metro District Policy, adopted by City Council on
August 21, 2018, and changes to the accompanying Model Service Plan. These changes included clarification
regarding timing and deadlines for submittal and reflect changes to the Model Service Plan requested by
Council during its recent consideration of three service plans September 2018.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
On August 21, 2018, City Council adopted Resolution 2018-079 revising the Policy for Reviewing Service
Plans of Metropolitan Districts (the “Metro District Policy” or “Policy”) previously adopted by Council through
Resolution 2008-069. The new policy made several fundamental changes to the previous policy. Shortly after
adopting this new policy, City Council considered and approved the Service Plans for three new Metro
Districts. During Council’s consideration of these items several changes were made to the service plans. Staff
understood Council’s direction in requesting these changes constituted precedent for the review of future
service plans. After Council’s review of the three most recent service plans, staff met to debrief the process
and discussed opportunities for improvement. Both the changes requested by Council and several process
improvements are presented in this policy update.
Policy Changes and Process Improvements
Staff proposes to revise the Metro District Policy in the following ways (listed in the order in which they appear
in the Policy):
1. Workforce Housing - This minor change adjusts the target Area Median Income (“AMI”) target range to 81
to 120 percent and adds the category to Exhibit A - Public Benefit Examples of the Policy.
2. Staff Response to Letter of Intent - To enhance clarity for applicants, the Policy has been revised to require
staff respond to any Letter of Intent within thirty (30) days of receipt and payment of pre-application fees.
3. Formal Application Submission Deadlines - To ensure adequate time for review and consideration, the
policy has been revised to include a deadline for formal application submittal that provides a minimum of
approximately 120 days for review. There are two deadlines each is linked to a potential election date,
either spring or fall.
4. Public Hearing Notice - This minor change shifts the Council Public Hearing section to a separate section
in the Policy.
Agenda Item 14
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5. Council Public Hearing - This new section of the Policy addresses the timing for Council to conduct a
public hearing requiring that the hearing occurs at least thirty (30) days prior to the final submission date
for the District Court to order an election. This should provide the Council a minimum of two (2) regular
council meetings to consider a service plan.
6. Order of Proceedings at Public Hearing - This is the most significant process change to the policy. This
new section lays out an order of proceedings for the public hearing that mirrors the development review
hearing process. The intent of this revision is to facilitate a more complete review of a proposed service
plan allowing Council to hear directly from the applicant.
A redline version of the Policy has been included for reference (Attachment 1).
Model Service Plan Changes
Staff proposes to revise the two versions of the Model Service Plan, the single district and multiple district
versions, (Exhibit B of the Policy) in the following ways (listed in no order):
• Further Council approval required - No debt, debt mill levy, or fees to pay debt may be issued or collected
until City Council approves an intergovernmental agreement and/or development agreement securing the
Public Benefits (Section IV.B(1-3)).
• City may dissolve a District for inaction - revisions to Section XVI now empower the City, at its option, to
dissolve the District if no intergovernmental agreement or development agreement has been approved by
City Council within three years of service plan approval.
• Regional improvements clean-up - Several minor changes have been made throughout the document to
clean-up the commitment by a district to establish the ability to support regional improvements through the
imposition of a 5.000 mill levy.
• Financial Plan - Clarifying language has been added to section IX.A indicating that the financial plan
attached to a service plan is based on “economic, political and industry conditions as they exist presently
and reasonable projections and estimates of future conditions.” Furthermore, the estimates and projections
presented are not to “be interpreted as the only method of implementation of the Districts’ goals and
objectives…” This allows for the financial plan to adjust over time as long as those adjustments comply
with the terms of the Service Plan.
• Maximum Debt Authorization - Section IX.B(7) has been revised to clarify the applicability of the Maximum
Debt Authorization excludes Intergovernmental Capital Pledge Agreements between two or more of the
Districts created by a given service plan.
• Board Meetings - Language clarifying the requirement to have board meetings in three of the four quarters
shall not apply until there is at least one end user of property within a district and terminates when most of
the directors on a district’s board are end users.
• Other minor changes - All other changes in the model service plan are either refinements in the spirit of the
original model service plan, minor in nature, or further changes for clarification.
• Intergovernmental Agreement - Optional language will be added to allow for an intergovernmental
agreement between the City and metro districts as needed for some districts in order to provide another
tool for the City to enforce the approved service plan.
Redline versions of the two Model Service Plans have been included for reference (Attachments 2 and 3).
BOARD / COMMISSION RECOMMENDATION
No Board or Commission outreach was completed for these changes. The Council Finance Committee
Reviewed the proposed changes at the December 17, 2018 meeting (Attachment 4).
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ATTACHMENTS
1. Metro District Policy (Draft) (PDF)
2. Model Service Plan - Single District (Draft) (PDF)
3. Model Service Plan - Multiple Districts (Draft) (PDF)
4. Council Finance Committee Minutes, December 17, 2018 (Draft) (PDF)
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CITY OF FORT COLLINS POLICY FOR REVIEWING SERVICE PLANS FOR
METROPOLITAN DISTRICTS
August 21, 2018
JanuaryFebruary 15, 2019
Introduction.
This policy establishes the criteria, guidelines and processes to be followed by City Council and City staff
in considering and by applicants in submitting to the City service plans for the organization of
metropolitan districts or amendments to those plans (“Policy”), as provided in Colorado’s Special District
Act in Article 1 of Title 32 of the Colorado Revised Statutes (the “Act”). The Act provides that
metropolitan districts are quasi-municipal corporations and political subdivisions (“District”) that can be
organized within the boundaries of a municipality provided the municipality’s governing body approves
by resolution the proposed service plan for the District. Under the Act, the service plan constitutes the
document that delineates the specific powers and functions the District can exercise, including the
facilities and services it can provide, the taxes it can impose and its permitted financial arrangements
(the “Service Plan”). The Act requires Districts to conform to their Service Plans.
Section 1 – Policy Objectives and Statements.
A. This Policy generally supports the formation of a District where it will deliver extraordinary
public benefits that align with the goals and objectives of the City whether such extraordinary
public benefits are provided by the District or by the entity organizing the District because the
District exists to provide public improvements.
B. A District, when properly structured, can enhance the quality of development in the City. The
City is receptive to District formation that provides extraordinary public benefits which could not
be practically provided by the City or an existing public entity, within a reasonable time and on a
comparable basis. It is not the intent of the City to create multiple entities which would be
construed as competing or duplicative.
C. The approval of a District Service Plan is at the sole discretion of City Council, which may reject,
approve, or conditionally approve Service Plans on a case-by-case basis. Nothing in this Policy is
intended, nor shall it be construed, to limit this discretion of City Council, which retains full
authority regarding the approval, terms, conditions and limitations of all Service Plans.
D. Policy Objectives.
The City will evaluate a proposed District and its Service Plan based on the District’s ability to
deliver public benefits through extraordinary development outcomes, specific examples are
provided in Exhibit A and generally occur in the following four focus areas:
ATTACHMENT 1
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1. Environmental Sustainability Outcomes: Development of public improvements that deliver
or facilitate the delivery of specific and measurable environmental outcomes, including but
not limited to: (i) reduction of Green House Gases (“GHG”), (ii) conservation of water or
energy, (iii) encourage multimodal transportation, (iv) enhance community resiliency –
against future environmental events (e.g., flooding, drought, etc.); (v) increase renewable
energy capacity; and/or (vi) deliver other environmental outcomes.
2. Critical Public Infrastructure: Development of public improvements that address or facilitate
addressing significant infrastructure challenges previously identified by the City, either
within or proximate to the District, whether such improvements address a locally-significant
challenge or a City-wide challenge.
3. Smart Growth Management: Development of public improvements that deliver or facilitate
the delivery of specific design components that: (i) increase the density of development
within the District; (ii) establish, enhance or address the walkability and pedestrian
friendliness of the District; (iii) increase the availability of transit and/or multimodal oriented
facilities; (iv) create compelling public spaces; and/or (v) encourage mixed-use development
patterns.
4. Strategic Priorities: Development of public improvements that deliver or facilitate the
delivery of strategic priorities specified in the City’s existing long-term strategic planning
documents, such as City Plan, Affordable Housing Plan, Economic Health Strategic Plan, and
applicable Sub-Area Plans. These priorities include, but are not limited to:
a. Affordable Housing: Deliver or facilitate the delivery of additional affordable housing
units at the City’s defined level of Area Median Income (“AMI”) or below. The City
defines Affordable Housing as units affordable to a household earning 80 percent of
AMI.
b. Workforce Housing: Deliver or facilitate the delivery of workforce housing units in the
City’s defined range of AMI. For purposes of this policy, Workforce Housing units shall
be defined as units affordable to a household earning between 801 percent and 120
percent of AMI.
c. Infill/Redevelopment: Enable the infill or redevelopment of property within the City,
especially when such development is consistent with City Plan.
d. Economic Health Outcomes: Enable delivery of specific and measurable economic
outcomes, such as: (i) job growth; (ii) retention of an existing business; and/or (iii)
construction of a missing economic resource.
In determining whether a proposed District delivers extraordinary public benefits, the City may
consider: (i) ways in which the proposed improvements exceed the City’s minimum
requirements and standards; (ii) ways in which the existence of the District facilitates the
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extraordinary public benefits and whether the extraordinary benefits are feasible without the
District; (iii) ways in which the proposed extraordinary benefits work together as a system to
deliver greater benefit to the community than individually; and (iv) any other factors the City
deems relevant under the circumstances.
E. Policy Statements:
1. Limited Use: The City wishes to exact a high standard of use for Districts thereby limiting
their use. An applicant project is expected to deliver extraordinary benefits across multiple
City objectives two or more of the objectives described in Section 1.D. of this Policy.
2. Broad and Demonstrable Public Benefit: Districts are expected to provide broad public
benefit and the applicant will be asked to demonstrate and provide assurances of those
benefits. The City will utilize the Service Plans, development agreements, and other
contractual agreements to document and enforce District commitments.
3. District Governance: It is the intent of the City that owner/resident control of Districts occur
as early as feasible. Service Plans should include governance structures that encourage and
accommodate this. The use of control Districts (also known as “service” or “managing”
Districts) that allow developers to control the other Districts that provide the tax revenues
beyond the time needed to repay the issued debt, is to be discouraged.
4. Basic Infrastructure Improvements: A District proposing to fund basic infrastructure
improvements will not be favorably received except when used to offset higher costs
associated with delivering public benefit through extraordinary development outcomes (see
Exhibit A for examples).
5. Minimum District Size: A District proposed to issue less than $7 million of authorized debt
will not be considered.
Section 2 – Evaluation Criteria
A. To provide City Council with information and an assessment consistent with this Policy, staff will
review and report on District proposals in the following areas:
1. Public Benefit Assessment and Triple Bottom Line Scan: To comprehensively and
consistently evaluate District proposals, an interdisciplinary staff team, inclusive of
representatives from Planning, Economic Health, Sustainability, and other Departments as
appropriate, will be formed. This team will rely on the City’s Triple Bottom Line evaluation
approach, and other means, to assess a District proposal consistent with this Policy and City
goals and objectives more broadly.
2. Financial Assessment: All District proposals are required to submit a Financial Plan to the
City for review. Utilizing the District’s Financial Plan, and other supporting information
which may be necessary, the City will evaluate a District’s debt capacity and servicing ability.
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Additionally, should a District desire to utilize District funding for basic infrastructure
improvements, as determined by the City in its sole discretion, staff will assess the value of
this benefit against the public benefits received in exchange.
3. Policy Evaluation: All proposals will be evaluated by City staff against this Policy and the
City’s “Model Service Plan” attached as Exhibit “B” for single-district Service Plans and as
Exhibit “C” for multi-district Service Plans, with any areas of difference being identified,
evaluated and reported to City Council.
Section 3 – Application Process
A. Process Overview: The application process is designed to provide early feedback to an applicant,
adequate time for a comprehensive staff review, and the appropriate steps and meeting
opportunities with decision makers.
B. Letter of Interest: Applicant will provide City with a Letter of Interest and pre-application fee
(refer to fees below). The Letter of Interest shall contain the following:
1. Summary narrative of the proposed development and District proposal.
2. Sketch plan showing: property location and boundaries; surrounding land uses; proposed
use(s); proposed improvements (buildings, landscaping, parking/drive areas, water
treatment/detention, drainage); existing natural features (water bodies, wetlands, large
trees, wildlife, canals, irrigation ditches); utility line locations (if known); and photographs
(helpful but not required).
3. Clear justification for why a District is needed.
4. Explanation of public benefits, making specific reference to this Policy and other relevant
City documents.
5. District proposal and Service Plan specifics, including: District powers and purpose; District
infrastructure and costs; mill levy rate (both debt and, operations and maintenance); term
of District; forecasted period of build-out; proposed timeline for formation; and current
development status of project.
C. Staff Response to Letter of Interest: Staff will provide a written response to a Letter of Interest
[within thirty (30) days] of receipt and payment of the pre-application hearing.
C.D. Preliminary Staff Meeting with Applicant (Optional): Based on an initial review of the
Letter of Interest, staff may meet with the applicant to discuss the District proposal, potential
public benefits, initial staff feedback, the evaluation process, fees, and other application
elements.
D.E. Formal Application and Service Plan Submittal: Upon taking account of staff input, applicant may
submit a formal application for consideration following the requirements specified in the City’s
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District Application, including the Service Plan in which the applicant shall highlight the
substantive provisions that deviate from this Policy and the applicable Model Service Plan
attached as Exhibit “B” or Exhibit “C”. The formal application and application fees must be
received by the City no later than the third Tuesday of December in the preceding year for a
spring election (May) or the third Tuesday of May for a fall election (November). The City cannot
commit to timely processing of applications submitted after these dates for their respective
elections.
E.F. Formal Staff Review: An interdisciplinary staff team will review the applicant submittal along
with any follow-up documentation that is requested in order to assess the application according
to this Policy and other appropriate City policy. Applicants should expect several rounds of
feedback and review from City staff.
F.G. Council Finance Committee Meeting: The Council Finance Committee will review all District
proposals and provide feedback and recommendations.
G.H. Council Work Session Meeting (optional): Based on the magnitude and complexity of
the development project and District proposal, staff and/or the Council Finance Committee may
recommend a Council Work Session.
H.I. Council Public Hearing: The City Council will conduct a noticed public hearing at a regular or
special Council meeting to consider resolution approval of Service Plan. Public Hearing Notice:
The Service Plan Applicant must cause a written notice of the public hearing to be mailed by
first-class mail to all fee title owners of real property within the boundaries of the proposed
District(s) and of any future inclusion area proposed in the Service Plan and such notice shall be
mailed no later than thirty (30) days before the scheduled hearing date. A notice shall also be
published once in a newspaper of general circulation in the City no later than thirty (30) days
before the scheduled hearing date. The mailed and published notices shall include the following
information:
1. A description of the general nature of the public improvements and services to be provided
by the District;
2. A description of the real property to be included in the District and in any proposed future
inclusion area, with such property being described by street address, lot and block, metes
and bounds if not subdivided, or such other method that reasonably apprises owners that
their property will or could be included in the District’s boundaries;
3. A statement of the maximum amount of property tax mill levy that can be imposed on
property in the District under the proposed Service Plan;
4. A statement that property owners desiring to have the City Council consider excluding their
properties from the District must file a petition for exclusion with the Fort Collins City Clerk’s
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Office no later than ten (10) days before the scheduled hearing date in accordance with
Section 32-1-203(3.5) of the Colorado Revised Statutes;
5. A statement that a copy of the proposed Service Plan can be reviewed in the Fort Collins City
Clerk’s Office; and
6. The date, time and location of the City Council’s public hearing on the Service Plan.
J. Council Public Hearing: The City Council will conduct a noticed public hearing at a regular or
special Council meeting to consider resolution approval of Service Plan. This hearing will occur
no later than [thirty (30) days] prior to the final submittal date to the District Court to order an
election. By way of example, for a fall election By way of example, for a typical fall election the
final submittal date to the District Court is [Insert Date Here]. In order to conduct a hearing
thirty (30) days prior, City Council, which meets on the first and third Tuesday’s of the month,
must conduct the public hearing no later than [the third Tuesday in August].
K. Proceedings at Public Hearing: The hearing shall be conducted under and in accordance with the
applicable procedures of the City Council’s adopted “Rules of Procedure Governing the Conduct
of City Council Meetings and Work Sessions,” except that the order of the proceedings of the
public hearing on the service plan shall be as follows:
1. Announcement of item;
2. Consideration of any procedural issues;
3. Explanation of the application by City staff;
4. Presentation by the applicant;
5. Public testimony regarding the application;
6. Rebuttal testimony by the applicant;
7. Councilmember questions of City staff and the applicant; and
8. Motion, discussion and vote by City Council.
Section 4 –Service Plan
A. Purpose: In addition to the requirements of the Act, a Service Plan should memorialize the
understandings and agreements between the District and the City, as well as the considerations
that compelled the City to authorize the formation of the District. The Service Plan must also
include all applicable information required by the Act.
B. Compliance with Applicable Law: Any Service Plan submitted to the City for approval must
comply with all state, federal and local laws and ordinances, including the Act.
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C. Model Service Plan: To clearly communicate City requirements and streamline legal review, the
City will require the use of itsthe applicable Model Service Plan attached as Exhibit “B” or
Exhibit “C”. With justification, the City may consider deviations in the proposed Service Plan, but
generally all Service Plans should include the following:
1. Eminent Domain NOT Authorized: The Service Plan shall contain language that prohibits the
District from exercising the power of eminent domain. However, the City may choose to
exercise its power of eminent domain to construct public improvements within the District
in which case the District and the City will enter into an intergovernmental agreement
concerning the public improvements and funding for that use of eminent domain.
2. Maximum Mill Levy: The Service Plan shall restrict the District’s total mill levy authorization
for both debt service and operations and maintenance to fifty (50) mills, subject to
adjustment as provided below. A portion of the Maximum Mill Levy may be utilized by the
District to fund operations and maintenance functions, including customary administrative
expenses incurred in operating the District such as accounting and legal expenses and
otherwise complying with applicable reporting requirements. No more than ten (10) mills
may be used for operations and maintenance (the “Operations and Maintenance Mill
Levy”).
a. Increased mill levies may be considered for Districts that are predominately commercial
in use, at the sole discretion of the City Council.
b. The Maximum Mill Levy may be adjustable from the base year of the District as provided
for in the Model Service Plan, so that to the extent possible, the actual tax revenues
generated by the District’s mill levy, as adjusted, for changes occurring after the base
year, are neither diminished nor enhanced as a result of the changes.
3. Debt Term Limit: A District shall be allowed no more than forty (40) years for the levy and
collection of taxes used to service debt unless a majority of the Board of Directors of the
District imposing the mill levy are residents of such District and have voted in favor of a
refunding of a part or all of the Debt and such refunding is for one or more of the purposes
authorized in C.R.S. Section 11-56-104.
4. District Dissolution: Perpetual Districts shall not be allowed except in cases where ongoing
operations and maintenance are required. Except where ongoing operations and
maintenance has been authorized, a District must be dissolved as soon as practical upon:
a. The payment of all debt and obligations; and
b. The completion of District development activity.
b. In addition, Districts shall have no more than three years from approval of the Service
Plan to secure City Council approval by resolution of an intergovernmental agreement
and/or a development agreement documenting the public benefits described in the Service
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Plan. Staff will inform City Council, in writing, of any Districts that have not obtained this
approval ninety (90) days in advance of the expiration of the three-year period. This written
notice will provide a status update on the Districts progress towards obtaining Council
approval and the other activities of the Districts.
5. District Fees: Impact fees, development fees, service fees, and any other fees must be
identified with particularity in the District Service Plan. Impact and development fees must
not be levied or collected against the end user – i.e., residents and/or non-developer
owners.
6. Notice Requirements: The Service Plan shall require that the District use reasonable efforts
to assure that all developers of the property located within the District provide written
notice to all purchasers of property in the District regarding the District’s existing mill levies,
its maximum debt mill levy, as well as a general description of the District’s authority to
impose and collect rates, fees, tolls and charges. The form of notice shall be filed with the
City prior to the initial issuance of the debt of the District imposing the mill levy.
7. Annual Report: The Service Plan must obligate the District to file an annual report not later
than September 1 of each year with the City Clerk for the year ending the preceding
December 31, the requirements of which may be waived in whole or in part by the City
Manager. Details of the Annual Report are included in the Model Service Plan.
D. Service Plan Requirements: In additional to all other information required in a Service Plan by
the Act, a Service Plan must include the following:
1. Financial Plan: The Service Plan must include debt and operating financial projections
prepared by an investment banking firm or financial advisor qualified to make such
projections. The financial firm must be listed in the Bond Buyers Marketplace or, in the
City’s sole discretion, other recognized publication as a provider of financial projections. The
Financial Plan must include debt issuance and service schedules and calculations
establishing the District’s projected maximum debt capacity (the “Total Debt Limitation”)
based on assumptions of: (i) Projected Interest Rate on the debt to be issued; (ii) Projected
Assessed Valuation of the property within the District; and (iii) Projected Rate of Absorption
of the assessed valuation within the District. These assumptions must use market-based,
market comparable valuation and absorption data and may use an annual inflation rate of
three percent (3%) or the Consumer Price Index for the preceding 12-month period for the
Denver-Boulder-Greeley statistical region as prepared by the U.S. Department of Labor
Statistics, whichever is lesser.
a. Total Debt Limitation: The total debt authorized in the Service Plan must not exceed
100% of the projected maximum debt capacity as shown in the Financial Plan.
b. Administrative, Operational and Maintenance Costs: The Financial Plan must also
include foreseeable administrative, operational and maintenance costs.
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2. Public Improvements and Estimated Costs: Every Service Plan must include, in addition to all
materials, plans and reports required by the Act, a summary of public improvements to be
constructed and/or installed by the district (the “Public Improvements”). The description of
these Public Improvements must include, at a minimum:
1. A map or maps, and construction drawings of such a scale, detail and size as
required by the Planning Department, providing an illustration of public
improvements proposed to be built, acquired or financed by the District;
2. A written narrative and description of the public improvements; and
3. A general description of the District’s proposed role with regard to the same.
Due to the preliminary nature, the Service Plan must indicate that the City’s approval of the
Public Improvements shall not bind the City, its boards and commissions, and City Council in
any way relating to the review and consideration of land use applications within the District.
3. Intergovernmental Agreement: Any intergovernmental agreement which is required or
known at the time of formation of the District to likely be required, to fulfill the purposes of
the District, must be described in the Service Plan, along with supporting rationale. The
Service Plan must provide that execution of intergovernmental agreements which are likely
to cause substantial increase in the District’s budget and are not described in the Service
Plan will require the prior approval of City Council.
4. Extraterritorial Service Agreement: The Service Plan must describe any planned
extraterritorial service agreement. The Service Plan must provide that any extraterritorial
service agreement by the District that are not described in the Service Plan will require prior
approval of City Council.
Section 5 – Regional Improvements
A. Purpose: A Service Plan may include a section addressing the planning, design, acquisition,
funding, construction, installation, relocation and/or redevelopment of Regional Improvements.
Such section is intended to ensure that the privately-owned properties to be developed in a
District that benefit from the Regional Improvements pay a reasonable share of the associated
costs.
B. Eligible Improvements: The City, to facilitate transparency, will include a list or exhibit in any
Service Plan including a Regional Improvements section that clearly identifies the improvements
to be funded, in part or whole, by a Regional Mill to be levied by the District. In selecting
improvements to be included in a Service Plan the City will apply the following standards:
1. Benefit to End User – Regional Improvements should have a clear benefit to the private-
owned properties funding the Regional Mill Levy. The City may establish this connection
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either through previous identification of the infrastructure need and/or through a technical
analysis, such as a traffic impact analysis.
2. Specificity – When possible, the City should include as much specificity about the Regional
Improvements to be included in a Service Plan as possible, while noting that any details are
preliminary and may be subject to change as planning, design, acquisition, funding,
construction, installation, relocation and/or redevelopment of the Regional Improvements
occurs.
3. No Other Funding Exists – The City will exclude improvements, either in part or whole, for
which funding mechanisms exists to support the planning, design, acquisition, funding,
construction, installation, relocation and/or redevelopment. By way of example, the City
collects Capital Expansion Fees to support street oversizing, however, several bridge
structures necessary to facilitate grade separated crossings of railroad infrastructure were
not included in the calculation of these Fees; therefore, the bridges would be and eligible
Regional Improvement, where the road surface itself would not.
Section 5 – Fees
A. No request to create a Metro District shall proceed until the fees set forth herein are paid when
required. All checks are to be made payable to the City of Fort Collins and sent to the Economic
Health Office.
1. Letter of Intent Submittal Fee: A Letter of Intent is to be submitted to the City’s Economic
Health Office and a non-refundable $2,500 fee shall be paid at the time of submittal of the
Letter.
2. Application Fee: An application along with a draft Service Plan (based on the Model Service
Plan) is to be submitted to the City’s Economic Health Office and a $7,500 non-refundable
fee along with a $7,500 deposit towards the City’s other expenses shall be paid at the time
of submittal of the Application and draft Service Plan.
3. Annual Fee: Each District shall pay an annual fee for the City’s on-going monitoring of each
Metro District. This annual fee shall be $500 or if multiple Districts exist serving a single
project, then the annual fee shall be $500 plus $250 for each additional District beyond the
first (e.g., the annual fee for Consolidated ABC Metro Districts 1 to 7 shall be $500 plus $250
times six or $2,000).
4. Non-Model Service Plan Fee: A District proposal requesting a substantial deviation from this
Policy or the applicable Model Service Plan, shall pay an additional non-refundable fee of
$5,000 at the time of submitting its application; the City shall in its sole and reasonable
discretion determine if a draft Service Plan proposes a substantial deviation from this Policy
or the applicable Model Service Plan.
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5. Other Expenses: If the deposits paid in subsections 2 and 6 are not sufficient to cover all the
City’s other expenses, the applicant for a District shall pay all reasonable consultant, legal,
and other fees and expenses incurred by the City in the process of reviewing the draft
Service Plan or amended Service Plan prior to adoption, documents related to a bond issue
and such other expenses as may be necessary for the City to incur to interface with the
District. All such fees and expenses shall be paid within 30 days of receipt of an invoice for
these additional fees and expenses.
6. Service Plan Amendment Fee: If a proposed amendment to a Service Plan is submitted to
the City’s Economic Health Office, it should be submitted with a non-refundable $2,500 fee
along with a $2,500 deposit towards the City’s other expenses and shall be paid at the time
of submittal of the application and draft amended Service Plan.
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EXHIBIT A
PUBLIC BENEFIT EXAMPLES
The following list of examples is meant to be illustrative of the types of projects that deliver the defined
public benefits in this policy. Projects that deliver similar or better outcomes will also be considered on
their merits.
(Continued on next page)
Category / Sub-Category Example Projects
1. Green House Gas Reductions - See subsequent sub-categories
2. Water and/or Energy Conservation
- District-wide non-potable water system(s)
- District-wide renewable energy systems(s)
- Delivery of 20% or more rooftop solar
- Greywater reuse system(s) - if allowed by law
3. Multimodal Transportation
- Buffered bike lanes
- Wider than required sidewalks
- Enhanced pedestrian crossings
- Underpass(es)
4. Enhance Community Resiliency - Significant stormwater improvements (previously identified)
- Improvements to existing bridges
5. Increase Renewable Energy Capacity
- District-wide renewable energy systems(s)
- Set aside land for community solar garden(s)
- Utility scale renewable project(s)
1. Within District Area
- Community Park Land (beyond code requirements)
- Regional Stormwater Facilities
- Major arterial development
- Parking Structures (Publicly Accessible)
2. Adjacent to Proposed District - Contribution to major interchange/intersection
- Contribution to grade separated railroad crossings
Environmental Sustainability Outcomes
Critical Public Infrastructure
13
Category / Sub-Category Example Projects
1. Increase density
- Alley load construction
- Smaller Lot Size
- Increased multifamily development
2. Walkability & Pedestrian Friendliness
- Wider than required sidewalks
- Enhanced pedestrian crossings
- Underpass(es)
- Trail system enhancements
3. Increase availablity of Transit
- Improved bus stops
- Restricted access guideways for bus operations
- Transfer facilities
4. Public Spaces - Pocket Parks
- Neighborhood Parks (beyond code requirements)
1. Affordable Housing - Units permanently affordable to 80% Area Median Income
- Land dedicated to City's land bank program
2. Infill/Redevelopment - Address environmental contamination / concern
- Consolidate wetlands or natural area (positive benefits)
3. Economic Health Outcomes - Facilitate job growth (at or above County median income)
- Retain an existing business
High Quality and Smart Growth Management
Strategic Priorities
14
Category / Sub-Category Example Projects
1. Increase density
- Alley load construction
- Smaller Lot Size
- Increased multifamily development
2. Walkability & Pedestrian Friendliness
- Wider than required sidewalks
- Enhanced pedestrian crossings
- Underpass(es)
- Trail system enhancements
3. Increase availablity of Transit
- Improved bus stops
- Restricted access guideways for bus operations
- Transfer facilities
4. Public Spaces - Pocket Parks
- Neighborhood Parks (beyond code requirements)
1. Affordable Housing - Units permanently affordable to 80% Area Median Income
- Land dedicated to City's land bank program
2. Attainable Housing - Units permanently affordable to 81 to 120% Area Median
Income
2. Infill/Redevelopment - Address environmental contamination / concern
- Consolidate wetlands or natural area (positive benefits)
3. Economic Health Outcomes - Facilitate job growth (at or above County median income)
- Retain an existing business
High Quality and Smart Growth Management
Strategic Priorities
15
EXHIBIT B
MODEL SERVICE PLAN
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City of Fort Collins
Title 32 Metropolitan District Model Single-
District Service Plan
ATTACHMENT 2
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This model service plan template should be referenced in conjunction with the
City of Fort Collins Policy for Reviewing Service Plans for Title 32
Metropolitan Districts.
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Table of Contents
INTRODUCTION ..............................................................................................................................................
Purpose and Intent .....................................................................................................................................
Need for District .........................................................................................................................................
Objective of the City regarding District’s Service Plan ................................................................................
Relevant Intergovernmental Agreements………………………………………………………………………………………………
City Approvals……………………………………………………………………………………………………………………………………….
DEFINITIONS ...................................................................................................................................................
BOUNDARIES AND LOCATION ........................................................................................................................
DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFIT & ASSESSED VALUATION ...........
Project and Planned Development .............................................................................................................
Public Benefits .............................................................................................................................................
Assessed Valuation .....................................................................................................................................
INCLUSION OF LAND IN THE SERVICE AREA ..................................................................................................
DISTRICT GOVERNANCE .................................................................................................................................
AUTHORIZED AND PROHIBITED POWERS .....................................................................................................
General Grant of Powers………………………………………………………………………………………………………………………..
Prohibited Improvements and Services and other Restrictions and Limitations .....................................
Eminent Domain Restriction ............................................................................................................
Fee Limitation ...................................................................................................................................
Operations and Maintenance ..........................................................................................................
Fire Protection Restriction ...............................................................................................................
Public Safety Services Restriction ....................................................................................................
Grants from Governmental Agencies Restriction ............................................................................
Golf Course Construction Restriction ................................................................................................
Television Relay and Translation Restriction ...................................................................................
Potable Water and Wastewater Treatment Facilities……………………………………………………………………
Sales and Use Tax Exemption Limitation .........................................................................................
Sub-district Restriction .....................................................................................................................
Initial Debt Limitation ......................................................................................................................
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Privately Placed Debt Limitation ......................................................................................................
Special Assessments……………………………………………………………………………………………………………………..
PUBLIC IMPROVEMENTS AND ESTIMATED COSTS ........................................................................................
Development Standards .............................................................................................................................
Contracting ..................................................................................................................................................
Land Acquisition and Conveyance ..............................................................................................................
Equal Employment and Discrimination .......................................................................................................
FINANCIAL PLAN/PROPOSED DEBT ...............................................................................................................
Financial Plan ..............................................................................................................................................
Mill Levies ....................................................................................................................................................
Aggregate Mill Levy Maximum .........................................................................................................
Regional Mill Levy Not Included in Other Mill Levies .......................................................................
Operating Mill Levy ..........................................................................................................................
Assessed Value and Mill Levies ........................................................................................................
Gallagher Adjustments .....................................................................................................................
Excessive Mill Levy Pledges ...............................................................................................................
Refunding Debt ................................................................................................................................
Maximum Debt Authorization ..........................................................................................................
Maximum Voted Interest Rate and Underwriting Discount .......................................................................
Interest Rate and Underwriting Discount Certification ..............................................................................
Disclosure to Purchasers .............................................................................................................................
External Financial Advisor ...........................................................................................................................
Disclosure to Debt Purchasers ....................................................................................................................
Security for Debt .........................................................................................................................................
TABOR Compliance .....................................................................................................................................
District’s Operating Costs ............................................................................................................................
Regional Improvements .................................................................................................................................
Regional Mill Levy Authority .......................................................................................................................
Regional Mill Levy Imposition .....................................................................................................................
City Notice Regarding Regional Improvements ..........................................................................................
Regional Improvements Authorized Under Service Plan ............................................................................
Expenditure of Regional Mill Levy Revenues ..............................................................................................
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Intergovernmental Agreement ........................................................................................................
No Intergovernmental Agreement ...................................................................................................
Regional Mill Levy Term ..............................................................................................................................
Completion of Regional Improvements ......................................................................................................
City Authority to Require Imposition ..........................................................................................................
Regional Mill Levy Not Included in Other Mill Levies .................................................................................
Gallagher Adjustment .................................................................................................................................
City Fees ..........................................................................................................................................................
Bankruptcy Limitations ..................................................................................................................................
Annual Reports and Board Meetings.............................................................................................................
General ........................................................................................................................................................
Board Meetings…………………………………………………………………………………………………………………………………….
Report Requirements ..................................................................................................................................
Narrative ...........................................................................................................................................
Financial Statements .........................................................................................................................
Capital Expenditures ........................................................................................................................
Financial Obligations .........................................................................................................................
Board Contact Information …………………………………………………………………………………………………………..
Other Information ............................................................................................................................
Reporting of Significant Events ...................................................................................................................
Failure to Submit .........................................................................................................................................
Service Plan Amendments .............................................................................................................................
Material Modifications ..................................................................................................................................
Dissolution ......................................................................................................................................................
Sanctions .........................................................................................................................................................
Conclusion ......................................................................................................................................................
Resolution of Approval ..................................................................................................................................
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I. INTRODUCTION
A. Purpose and Intent.
The District, which is intended to be an independent unit of local government separate
and distinct from the City, is governed by this Service Plan, the Special District Act and other
applicable State law. Except as may otherwise be provided by State law, City Code or this
Service Plan, the District's activities are subject to review and approval by the City Council
only insofar as they are a material modification of this Service Plan under C.R.S. Section 32-
1-207 of the Special District Act.
It is intended that the District will provide all ofor part of the Public Improvements for
the Project for the use and benefit of all anticipated inhabitants and taxpayers of the District.
The primary purpose of the District will be to finance the construction of these Public
Improvements by the issuance of Debt.
It is also intended under this Service Plan that the District shall not be authorized to
issue any Debt, impose a Debt Mill Levy, Operating Mill Levy or impose any Fees for
payment of the Debt unless and until the delivery of applicable Public Benefits described in
Section IV.B. of this Service Plan has been secured in accordance with Section IV.B. of this
Service Plan.
[Add if Applicable] It is further intended that this Service Plan also requires the District to
pay a portion of the cost of the Regional Improvements, as provided in Section X of this Service
Plan, as part of ensuring that those privately-owned properties to be developed in the District that
benefit from the Regional Improvements pay a reasonable share of the associated costs.
The District is not intended to provide ongoing operations and maintenance services
except as expressly authorized in this Service Plan.
It is the intent of the District to dissolve upon payment or defeasance of all Debt incurred
or upon a court determination that adequate provision has been made for the payment of all Debt,
except that if the District is authorized in this Service Plan to perform continuing operating or
maintenance functions, the District shall continue in existence for the sole purpose of providing
such functions and shall retain only the powers necessary to impose and collect the taxes or Fees
authorized in this Service Plan to pay for the costs of those functions.
It is intended that the District shall comply with the provisions of this Service Plan and
that the City may enforce any non-compliance with these provisions as provided in Section
XVII of this Service Plan.
B. Need for the District.
There are currently no other governmental entities, including the City, located in the
immediate vicinity of the District that consider it desirable, feasible or practical to undertake the
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planning, design, acquisition, construction, installation, relocation, redevelopment and financing
of the Public Improvements needed for the Project. Formation of the District 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 District's Service Plan.
The City’s objective in approving this Service Plan is to authorize the District to provide
for the planning, design, acquisition, construction, installation, relocation and redevelopment of
the Public Improvements from the proceeds of Debt to be issued by the District., but in doing so,
to also establish in this Service Plan the means by which both the Regional Improvements and the
Public Benefits will be provided. Except as specifically provided in this Service Plan, all Debt is
expected to be repaid by taxes and Fees imposed and collected for no longer than the Maximum
Debt Mill Levy Imposition Term for residential properties., and at Aa tax mill levy may not
exceedno higher than the Maximum Debt Mill Levy. Fees imposed for the payment of Debt shall
be due no later than upon the issuance of a building permit unless a majority of the Board which
imposes such a Fee is composed of End Users as provided in Section VII.B.2 of this Service Plan.
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.
D. Relevant Intergovernmental Agreements.
[Add description of any relevant intergovernmental agreements.]
E. City Approvals.
Any provision in this Service Plan requiring “City” or “City Council” approval or consent
shall require the City Council’s prior written approval or consent exercised in its sole discretion.
Any provision in this Service Plan requiring “City Manager” approval or consent shall require the
City Manager’s prior written approval or consent exercised in the City Manager’s sole discretion.
II. DEFINITIONS
In this Service Plan, the following words, terms and phrases which appear in a capitalized
format shall have the meaning indicated below, unless the context clearly requires otherwise:
Aggregate Mill Levy: means the total mill levy resulting from adding the District’s Debt
Mill Levy and Operating Mill Levy. The District’s Aggregate Mill Levy does not include
any Regional Mill Levy that the District may levy.
Aggregate Mill Levy Maximum: means the maximum number of combined mills that the
District may levy for its Debt Mill Levy and Operating Mill Levy, at a rate not to exceed
the limitation set in Section IX.B.1 of this Service Plan.
Approved Development Plan: means a City-approved development plan or other land-use
application required by the City Code for identifying, among other things, public
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improvements necessary for facilitating the development of property within the Service
Area, which plan shall include, without limitation, any development agreement required
by the City Code.
Board: means the duly constituted Board of Directors of the District.
Bond, Bonds or Debt: means bonds, notes or other multiple fiscal year financial obligations
for the payment of which a District has promised to impose an ad valorem property tax
mill levy, Fees or other legally available revenue. Such terms do not include contracts
through which a District procures or provides services or tangible property.
City: means the City of Fort Collins, Colorado, a home rule municipality.
City Code: means collectively the City’s Municipal Charter, Municipal Code, Land Use
Code and ordinances as all are now existing and hereafter amended.
City Council: means the City Council of the City of Fort Collins, Colorado.
City Manager: means the City Manager of the City of Fort Collins, Colorado.
C.R.S.: means the Colorado Revised Statutes.
Debt Mill Levy: means a property tax mill levy imposed on Taxable Property by the
District for the purpose of paying Debt as authorized in this Service Plan, at a rate not to
exceed the limitations set in Section IX.B of this Service Plan.
Developer: means a person or entity that is the owner of property or owner of contractual
rights to property in the Service Area that intends to develop the property.
Developer Obligation: means any agreement executed by the District for the purpose of
borrowing funds from any Developer or related party developing or selling land within the
Service Area or who is a member of the Board.
District: means the [Name of District] organized under and governed by this Service Plan.
District Boundaries: means the boundaries of the area legally described in Exhibit “A”
attached hereto and incorporated by reference and as depicted in the District Boundary
Map.
District Boundary Map: means the map of the District Boundaries attached hereto as
Exhibit “B” and incorporated by reference.
End User: means any owner, or tenant of any owner, of any property within the District,
who is intended to become burdened by the imposition of ad valorem property taxes and/or
Fees. By way of illustration, a resident homeowner, renter, commercial property owner or
commercial tenant is an End User. A Developer and any person or entity that constructs
homes or commercial structures is not an End User.
External Financial Advisor: means a consultant that: (1) is qualified to advise 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; (2) shall be an underwriter, investment banker, or individual listed as a
public finance advisor in the Bond Buyer’s Municipal Market Place or, in the City’s sole
discretion, other recognized publication as a provider of financial projections; and (3) is
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not an officer or employee of the District or an underwriter of the District’s Debt.
Fees: means the fees, rates, tolls, penalties and charges the District is authorized to impose
and collect under this Service Plan.
Financial Plan: means the Financial Plan described in Section IX of this Service Plan which
iswas prepared or approved by [Name], an External Financial Advisor, in accordance with
the requirements of this Service Plan and describes (a) how the Public Improvements are
to be financed; (b) how the Debt is expected to be incurred; and (c) the estimated operating
revenue derived from property taxes and any Fees for the first budget year through the year
in which all District Debt is expected to be defeased or paid in the ordinary course. In the
event the Financial Plan is not prepared by an External Financial Advisor, the Financial Plan
is to be accompanied by a letter of support from an External Financial Advisor.
Inclusion Area Boundaries: means the boundaries of the property that is anticipated to be
added to the District Boundaries after the District’s organization, which property is legally
described in Exhibit “C” attached hereto and incorporated by reference and depicted in
the map attached hereto as Exhibit “D” and incorporated herein by reference.
Maximum Debt Authorization: means the total Debt the District is permitted to issue as set
forth in Section IX.B.87 of this Service Plan.
Maximum Debt Mill Levy Imposition Term: means the maximum term during which the
District’s Debt Mill Levy may be imposed on property developed in the Service Area for
residential use, which shall include residential properties in mixed-use developments. This
maximum term shall not exceed forty (40) years from December 31 of the year this Service
Plan is approved by City Council
Operating Mill Levy: means a property tax mill levy imposed on Taxable Property for the
purpose of funding District administration, operations and maintenance as authorized in
this Service Plan, including, without limitation, repair and replacement of Public
Improvements, and imposed at a rate not to exceed the limitations set in Section IX.B. of
this Service Plan.
Planned Development: means the private development or redevelopment of the properties
in the Service Area, commonly referred to as the [Name] development, under an Approved
Development Plan.
Project: means the installation and construction of the Public Improvements for the Planned
Development.
Public Improvements: means the improvements and infrastructure the District is authorized
by this Service Plan to fund and construct for the Planned Development to serve the future
taxpayers and inhabitants of the District, except as specifically prohibited or limited in this
Service Plan. Public Improvements shall include, without limitation, the improvements and
infrastructure described in Exhibit “E” attached hereto and incorporated by reference.
Public Improvements do not include Regional Improvements.
Regional Improvements: means any regional public improvement identified by the City, as
provided in Section X of this Service Plan, for funding, in whole or part, by a Regional
Mill Levy levied by the District, including, without limitation, the public improvements
described in Exhibit “F” attached hereto and incorporated by reference.
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Regional Mill Levy: means the property tax mill levy imposed on Taxable Property for the
purpose of planning, designing, acquiring, funding, constructing, installing, relocating
and/or redeveloping the Regional Improvements and/or to fund the administration and
overhead costs related to the Regional Improvements as provided in Section X of this
Service Plan.
Service Area: means the property within the District Boundaries and the property in the
Inclusion Area Boundaries when it is added, in whole or part, to the District Boundaries.
Special District Act: means Article 1 in Title 32 of the Colorado Revised Statutes, as
amended.
Service Plan: means this service plan for the District approved by the City Council.
Service Plan Amendment: means a material modification of the Service Plan approved by
the City Council in accordance with the Special District Act, this Service Plan and any
other applicable law.
State: means the State of Colorado.
Taxable Property: means the real and personal property within the District Boundaries and
within the Inclusion Area Boundaries when added to the District Boundaries that will be
subject to the ad valorem property taxes imposed by the District.
TABOR: means Colorado’s Taxpayer’s Bill of Rights in Article X, Section 20 of the
Colorado Constitution.
Vicinity Map: means the map attached hereto as Exhibit “G” and incorporated by
reference depicting the location of the Service Area within the regional area surrounding
it.
III. BOUNDARIES AND LOCATION
The area of the District Boundaries includes approximately [Insert Number] acres and the
total area proposed to be included in the Inclusion Area Boundaries is approximately [Insert
Number] acres. A legal description and map of the District Boundaries are attached hereto as
Exhibit A and Exhibit B, respectively. A legal description and map of the Inclusion Area
Boundaries are attached hereto as Exhibit C and Exhibit D, respectively. It is anticipated that the
District’s Boundaries may expand or contract from time to time as the District undertakes
inclusions or exclusions pursuant to the Special District Act, subject to the limitations set forth in
this Service Plan. The location of the Service Area is depicted in the vicinity map attached as
Exhibit G.
IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC
BENEFITS & ASSESSED VALUATION
A. Project and Planned Development.
[Describe the nature of the Project and Planned Development, estimated population at
build out, timeline for development, estimated assessed value after 5 and 10 years and estimated
sales tax revenue. Also, please identify all plans, including but not limited to Citywide Plans,
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Small Area Plans, and General Development Plans that apply to any portion of the District’s
Boundaries or Inclusion Area Boundaries and describe how the Project and Planned
Development are consistent with the applicable plans. Please state if the proposed District is to
be located within an urban renewal area and if the proposed development is anticipating the
use of tax increment financing (TIF). If the District intends to pursue TIF, please provide
information on how the TIF financing will interact with the District’s financing and how the
necessary Public Improvements will be shared across the two funding sources.]
Approval of this Service Plan by the City Council does not imply approval of the
development of any particular land-use for any specific area within the District. Any such
approval must be contained within an Approved Development Plan.
B. Public Benefits.
[Described the public benefits to be delivered by the Service Plan that comply with the
requirements of the City’s Metro District Service Plan Policy. The description must include
specific and measurable objectives for the public benefits to be delivered by the Service Plan.
Examples of specific and measurable approaches can be found in the City’s Metro District
Service Plan Policy.]
In addition to providing a portion of the Public Improvements and Regional Improvements,
the organization of the District is intended to enable the Project to deliver a number of
extraordinary direct and indirect public benefits, including: [Describe Public Benefits]
(collectively, the “Public Benefits”). The Public Benefits to be enabled under this Service Plan are
specifically described in Exhibit J attached hereto and incorporated herein by reference.
Therefore, notwithstanding any provision to the contrary contained in this Service Plan,
the District shall not be authorized to issue any Debt or to impose a Debt Mill Levy or any Fees
for payment of Debt unless and until the delivery of the Public Benefits specifically related to the
phase of the Planned Development of a portion of the Project to be financed with such Debt, Debt
Mill Levy or Fees, are secured in a manner approved by the City Council. To satisfy this
precondition to the issuance of Debt and to the imposition of the Debt Mill Levy and Fees, delivery
of the Public Benefits for each phase of the Project and the Planned Development must be secured
by the following methods, as applicable:
1. For any portion of the Public Benefits to be provided by the District, the District must
enter into an intergovernmental agreement with the City by either (i) agreeing to
provide those Public Benefits as a legally enforceable multiple-fiscal year obligation
of the District under TABOR, or (ii) securing performance of that obligation with a
surety bond, letter of credit or other security acceptable to the City, and any such
intergovernmental agreement must be approved by the City Council by resolution;
2. For any portion of the Public Benefits to be provided by one or more Developers of the
Planned Development, each such Developer must either (i) enter into a development
agreement with the City under the Developer’s applicable Approved Development
Plan, which agreement must legally obligate the Developer to provide those Public
Benefits before the City is required to issue building permits and/or certificates of
occupancy for structures to be built under the Approved Development Plan for that
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phase of the Planned Development, or (ii) secure such obligations with a surety bond,
letter of credit or other security acceptable to the City, and all such development
agreements must be approved by the City Council by resolution; or
3. For any portion of the Public Benefits to be provided in part by the District and in part
by one or more of the Developers, an agreement between the City and the affected
District and Developers that secures such Public Benefits as legally binding obligations
using the methods described in subsections 1 and 2 above, and all such agreements
must be approved by the City Council by resolution.
C. Assessed Valuation.
The current assessed valuation of the Service Area is approximately [Dollar Amount]
and, at build out, is expected to be [Dollar Amount]. These amounts are expected to be sufficient
to reasonably discharge the Debt as demonstrated in the Financial Plan.
V. INCLUSION OF LAND IN THE SERVICE AREA
Other than the real property in the Inclusion Area Boundaries, the District shall not
includeadd any real property into the Service Area without the City’s Council’s prior written
approval and in compliance with the Special District Act. Once the District has issued Debt, it
shall not exclude real property from the District’s boundaries without the prior written consent of
the City Council.
VI. DISTRICT GOVERNANCE
The District’s Board shall be comprised of persons who are a qualified “eligible elector”
of the District as provided in the Special District Act. It is anticipated that over time, the End Users
who are eligible electors will assume direct electoral control of the District’s Board as development
of the Service Area progresses. The District shall not enter into any agreement by which the End
Users’ electoral control of the Board is removed or diminished.
VII. AUTHORIZED AND PROHIBITED POWERS
A. General Grant of Powers.
The District shall have the power and authority to provide the Public Improvements, the
Regional Improvements and related operation and maintenance services, within and without the
District Boundaries, as such powers and authorities are described in the Special District Act, other
applicable State law, common law and the Colorado Constitution, subject to the prohibitions,
restrictions and limitations set forth in this Service Plan.
If, after the Service Plan is approved, any State law is enacted to grant additional powers
or authority to metropolitan districts by amendment of the Special District Act or otherwise, such
powers and authority shall not be deemed to be a part hereof. These new powers and authority
shall only be and available to be exercised by the Districts if the City Council first approves a
Service Plan Amendment to specifically allow the exercise of such powers or authority by the
District. Such approval by the City Council shall not constitute a Service Plan Amendment.
B. Prohibited Improvements and Services and other Restrictions and Limitations.
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The District’s powers and authority under this Service Plan to provide Public
Improvements and services and to otherwise exercise its other powers and authority under the
Special District Act and other applicable State law, are prohibited, restricted and limited as
hereafter provided. Failure to comply with these prohibitions, restrictions and limitations shall
constitute a material modification under this Service Plan and shall entitle the City to pursue all
remedies available at law and in equity as provided in Sections XVII and XVIII of this Service
Plan:
1. Eminent Domain Restriction
The District shall not exercise its statutory power of eminent domain without first
obtaining resolution approval from the City Council. This restriction on the District’s
exercise of its eminent domain power is being voluntarily acquiesced to by the District
and shall not be interpreted in any way as a limitation on the District’s sovereign powers
and shall not negatively affect the District’s status as a political subdivision of the State
as conferred by the Special District Act.
2. Fee Limitation
AllAny Fees imposed for the repayment of Debt, if authorized by this Service Plan,
shall be authorized tonot be imposed by the District upon or collected from an End
User.all property within the District Boundaries only if such Fees are due and payable
no later than upon the issuance of a building permit by the City. In addition, Fees
imposed for the payment of Debt shall not be imposed unless and until the requirements
for securing the delivery of the District’s portion of the Public Benefits have been
satisfied in accordance with Section IV.B of this Service Plan. Notwithstanding any of
the foregoing, this Fee limitation shall not apply to any Fee imposed to fund the
operation, maintenance, repair or replacement of Public Improvements or the
administration of the District, nor shall this Fee limitation apply if a majority of the
District’s Board is composed of End Users.
3. Operations and Maintenance
The primary purpose of the District is to plan for, design, acquire, construct, install,
relocate, redevelop and finance the Public Improvements. The District shall dedicate
the Public Improvements to the City or other appropriate jurisdiction or owners’
association in a manner consistent with the Approved Development Plan and the City
Code, provided that nothing herein requires the City to accept a dedication. The District
is specifically authorized to operate and maintain all or any part or all of the Public
Improvements not otherwise conveyed or dedicated to the City or another appropriate
governmental entity until such time as the District is dissolved. The District shall also
be specifically authorized to conduct operations and maintenance functions related to
the Public Improvements that are not provided by the City or other governmental entity,
or to the extent that the District’s proposed operational and maintenance functions
included services or activities that exceed those provided by the City or other
governmental entity. Additionally, the District shall be authorized to operate and
maintain any part or all of the Public Improvements not otherwise conveyed or
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dedicated to the City or another appropriate governmental entity until such time that
the District dissolves.
4. Fire Protection Restriction
The District is not authorized to plan for, design, acquire, construct, install, relocate,
redevelop, finance, own, operate or maintain fire protection facilities or services, unless
such facilities and services are provided pursuant to an intergovernmental agreement
with the Poudre Fire Authority. The authority to plan for, design, acquire, construct,
install, relocate, redevelop, finance, own, operate or maintain fire hydrants and related
improvements installed as part of the Project’s water system shall not be limited by this
subsection.
5. Public Safety Services Restriction
The District is not authorized to provide policing or other security services. However,
the District may, pursuant to C.R.S. § 32-1-1004(7), as amended, furnish security
services pursuant to an intergovernmental agreement with the City.
6. Grants from Governmental Agencies Restriction
The District shall not apply for grant funds distributed by any agency of the United
States Government or the State without the prior written approval of the City Manager.
This does not restrict the collection of Fees for services provided by the District to the
United States Government or the State.
7. Golf Course Construction Restriction
Acknowledging that the City has financed public golf courses and desires to coordinate
the construction of public golf courses within the City’s boundaries, the District shall
not be authorized to plan, design, acquire, construct, install, relocate, redevelop,
finance, own, operate or maintain a golf course unless such activity is pursuant to an
intergovernmental agreement with the City approved by the City Council.
8. Television Relay and Translation Restriction
The District is not authorized to plan for, design, acquire, construct, install, relocate,
redevelop, finance, own, operate or maintain television relay and translation facilities
and services, other than for the installation of conduit as a part of a street construction
project, unless such facilities and services are provided pursuant to prior written
approval from the City CouncilManager as a Service Plan Amendment.
9. Potable Water and Wastewater Treatment Facilities
Acknowledging that the City and other existing special districts operating within the
City currently own and operate treatment facilities for potable water and wastewater
that are available to provide services to the Service Area, the District shall not plan,
design, acquire, construct, install, relocate, redevelop, finance, own, operate or
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maintain such facilities without obtaining the City Council’s prior written approval
either by intergovernmental agreement or as a Service Plan Amendment.
10. Sales and Use Tax Exemption Limitation
The District shall not exercise any sales and use tax exemption otherwise available to
the District under the City Code.
11. Sub-district Restriction
The District shall not create any sub-district pursuant to the Special District Act without
the prior written approval of the City CouncilManager.
12. 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 C.R.S. Section 32-1-103(12)) 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.
13. Special Assessments
The District shall not impose special assessments without the prior
written approval of the City Council.
VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS
Exhibit E summarizes the type of Public Improvements that are projected to be constructed
and/or installed by the District. The cost, scope, and definition of such Public Improvements may
vary over time. The total estimated costs of Public Improvements, as set forth in Exhibit H,
excluding any improvements paid for by the Regional Mill Levy necessary to serve the Planned
Development, are approximately [Dollar Amount] in [Year] dollars and total approximately
[Dollar Amount] in the anticipated year of construction dollars. The cost estimates are based upon
preliminary engineering, architectural surveys, and reviews of the Public Improvements set forth
in Exhibit E and include all construction cost estimates together with estimates of costs such as
land acquisition, engineering services, legal expenses and other associated expenses. Maps of the
anticipated location, operation, and maintenance of Public Improvements are attached hereto as
Exhibit I. Changes in the Public Improvements or cost, which are approved by the City in an
Approved Development Plan and any agreement approved by the City Council pursuant to Section
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IV.B of this Service Plan, shall not constitute a Service Plan Amendment. In addition, due to the
preliminary nature of the Project, the City shall not be bound by this Service Plan in reviewing and
approving the Approved Development Plan and the Approved Development Plan shall supersede
the Service Plan with regard to the cost, scope, and definition of Public Improvements. Provided,
however, any agreement approved and entered into under Section IV.B of this Service Plan for the
provision of a Public Improvement that is also a Public Benefit, shall supersede both this Service
Plan and the applicable Approved Development Plan.
Except as otherwise provided by an agreement approved under Section IV.B of this Service
Plan: (i) Tthe design, phasing of construction, location and completion of Public Improvements
will be determined by the District to coincide with the phasing and development of the Planned
Development and the availability of funding sources.; (ii) T the District may, in its discretion,
phase the construction, completion, operation, and maintenance of Public Improvements or defer,
delay, reschedule, rephase, relocate or determine not to proceed with the construction, completion,
operation, and maintenance of Public Improvements, and such actions or determinations shall not
constitute a Service Plan Amendment.; and (iii) T the District shall also be permitted to allocate
costs between such categories of the Public Improvements as deemed necessary in its discretion.
The Public Improvements shall be listed using an ownership and maintenance matrix in
Exhibit E, either individually or categorically, to identify the ownership and maintenance
responsibilities of the Public Improvements.
The City Code has development standards, contracting requirements and other legal
requirements related to the construction and payment of public improvements and related to certain
operation activities. Relating to these, the District shall comply with the following requirements:
A. Development Standards.
The District shall ensure that the Public Improvements are designed and constructed in
accordance with the standards and specifications of the City Code and of other governmental
entities having proper jurisdiction, as applicable. The District directly, or indirectly through any
Developer, 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.
Unless waived by the City Council, the District shall be required, in accordance with the City
Code, to post a surety bond, letter of credit, or other approved development security for any Public
Improvements to be constructed by the District. Such development security may be released in the
City Manager’s discretion when the District has obtained funds, through Debt issuance or
otherwise, adequate to insure the construction of the Public Improvements, unless such release is
prohibited by or in conflict with any City Code provision, or State law or any agreement approved
and entered into under Section IV.B of this Service Plan. Any limitation or requirement concerning
the time within which the City must review the District’s proposal or application for an Approved
Development Plan or other land use approval is hereby waived by the District.
B. Contracting.
The District shall comply with all applicable State purchasing, public bidding and
construction contracting requirements and limitations.
C. Land Acquisition and Conveyance.
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The purchase price of any land or improvements acquired by the District from the
Developer shall be no more than the then-current fair market value as confirmed by an independent
MAI appraisal for land and by an independent professional engineer for improvements. Land,
easements, improvements and facilities conveyed to the City shall be free and clear of all liens,
encumbrances and easements, unless otherwise approved by the City Manager prior to
conveyance. All conveyances to the City shall be by special warranty deed, shall be conveyed at
no cost to the City, shall include an ALTA title policy issued to the City, shall meet the
environmental standards of the City and shall comply with any other conveyance prerequisites
required in the City Code.
D. Equal Employment and Discrimination.
In connection with the performance of all acts or activities hereunder, the District shall not
discriminate against any person otherwise qualified with respect to its hiring, discharging,
promoting or demoting or in matters of compensation solely because of race, color, religion,
national origin, gender, age, military status, sexual orientation, gender identity or gender
expression, marital status, or physical or mental disability, and further shall insert the foregoing
provision in contracts or subcontracts entered into by the District to accomplish the purposes of
this Service Plan.
IX. FINANCIAL PLAN/PROPOSED DEBT
This Section IX of the Service Plan describes the nature, basis, method of funding and
financing limitations associated with the acquisition, construction, completion, repair,
replacement, operation and maintenance of Public Improvements.
Notwithstanding any provision to the contrary contained in this Service Plan, the District
shall not be authorized to impose the Debt Mill Levy, the Operating Mill Levy or any other taxes
or Fees for any purpose unless and until (a) the District and/or the Developer has obtained an
Approved Development Plan that secures the Public Benefits described in Section IV.B of this
Service Plan, or (b) the City and District, at the City’s option, have entered into an
intergovernmental agreement securing the delivery of the Public Benefits described in Section
IV.B Failure to comply with this provision shall constitute a material modification under this
Service Plan and shall entitle the City to all remedies available at law and in equity as provided in
Section XVII of this Service Plan.
A. Financial Plan.
The District’s Financial Plan, attached as Exhibit J and incorporated by reference, reflects
the District’s anticipated schedule for incurring Debt to fund Public Improvements in support of
the Project. The Financial Plan also reflects the schedule of all anticipated revenues flowing to the
District derived from District mill levies, Fees imposed by the District, specific ownership taxes,
and all other anticipated legally available revenues. The Financial Plan incorporates all of the
provisions of this Section IX. The Financial Plan is based on economic, political and industry
conditions as they presently exist and reasonable projections and estimates of future conditions.
These projections and estimates are not to be interpreted as the only method of implementation of
the District’s goals and objectives but rather a representation of one feasible alternative. Other
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financial structures may be used so long as they are in compliance with this Service Plan. The
Financial Plan incorporates all of the provisions of this Article IX.
Based upon the assumptions contained therein, the Financial Plan projects the issuance of
Bonds to fund Public Improvements and anticipated Debt repayment based on the development
assumptions and absorptions of the property in the Service Area by End Users. The Financial Plan
anticipates that the District will acquire, construct, and complete all Public Improvements needed
to serve the Service Area.
The Financial Plan demonstrates that the District will have the financial ability to discharge
all Debt to be issued as part of the Financial Plan on a reasonable basis. Furthermore, the District
will secure the certification of an External Financial Advisor who will provide an opinion as to
whether such Debt issuances are in the best interest of the District at the time of issuance.
B. Mill Levies.
It is anticipated that the District will impose a Debt Mill Levy and an Operating Mill Levy
on all property within the Service Area. In doing so, the following shall apply:
1. Aggregate Mill Levy Maximum
The Aggregate Mill Levy shall not exceed in any year the Aggregate Mill Levy
Maximum, which is fifty (50) mills.
2. Regional Mill Levy Not Included in Other Mill Levies
The Regional Mill Levy shall not be counted against the Aggregate Mill Levy
Maximum.
3. Operating Mill Levy
The District may impose an Operating Mill Levy of up to fifty (50) mills until the
District imposes a Debt Mill Levy. Once the District imposes a Debt Mill Levy of any
amount, the District’s Operating Mill Levy shall cannot exceed ten (10) mills at any
point.
4. Gallagher Adjustments
In the event the State’s method of calculating assessed valuation for the Taxable
Property changes after January 1, [current year] or approval of this Service Plan any
constitutionally mandated tax credit, cut or abatement, the District’s Aggregate Mill
Levy, Debt Mill Levy, Operating Mill Levy, and Aggregate Mill Levy Maximum,
amounts herein provided may be increased or decreased to reflect such changes; such
increases or decreases shall be determined by the District’s Board in good faith so that
to the extent possible, the actual tax revenues generated by such mill levies, as adjusted,
are neither enhanced nor diminished as a result of such change occurring after January
1, [current year]. For purposes of the foregoing, a change in the ratio of actual
valuation to assessed valuation will be a change in the method of calculating assessed
valuation.
5. Excessive Mill Levy Pledges
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Any Debt issued with a mill levy pledge, or which results in a mill levy pledge, that
exceeds the Aggregate Mill Levy Maximum or the Maximum Debt Mill Levy
Imposition Term, shall be deemed a material modification of this Service Plan and shall
not be an authorized issuance of Debt unless and until such material modification has
been approved by a Service Plan Amendment.
6. Refunding Debt
The Maximum Debt Mill Levy Imposition Term may be exceeded for Debt refunding
purposes if: (1) a majority of the District Board is composed of End Users and have
voted in favor of a refunding of a part or all of the Debt; or (2) such refunding will
result in a net present value savings.
7. Maximum Debt Authorization
The District anticipates approximately [Dollar Amount] in project costs in [Year]
dollars as set forth in Exhibit E and anticipate issuing approximately [Dollar Amount]
in Debt to pay such costs as set forth in Exhibit J, which Debt issuance amount shall
be the amount of the Maximum Debt Authorization. In addition, the District shall not
issue any Debt unless and until delivery of the District’s Public Benefits have been
secured as required in Section IV.B of this Service Plan. The District shall not issue
Debt in excess of the Maximum Debt Authorization. Bonds, loans, notes or other
instruments which have been refunded shall not count against the Maximum Debt
Authorization. The District must seekobtain from the City Council a Service Plan
Amendment prior to issuing Debt in excess of the Maximum Debt Authorization. prior
resolution approval by the City Council to issue Debt in excess of the Maximum Debt
Authorization to pay the actual costs of the Public Improvements set forth in Exhibit
E plus inflation, contingencies and other unforeseen expenses associated with such
Public Improvements. Such approval by the City Council shall not constitute a material
modification of this Service Plan requiring a Service Plan Amendment so long as
increases are reasonably related to the Public Improvements set forth in Exhibit E and
any Approved Development Plan.
C. Maximum Voted Interest Rate and Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt is issued.
The maximum interest rate on any Debt, including any defaulting interest rate, is not permitted to
exceed Twelve Percent (12%). The maximum underwriting discount shall be three percent (3%).
Debt, when issued, will comply with all relevant requirements of this Service Plan, the Special
District Act, other applicable State law and federal law as then applicable to the issuance of public
securities.
D. Interest Rate and Underwriting Discount Certification.
The District shall retain an External Financial Advisor to provide a written opinion on the
market reasonableness of the interest rate on any Debt and any underwriter discount payed by the
District as part of a Debt financing transaction. The District shall provide this written opinion to
the City before issuing any Debt based on it.
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E. Disclosure to Purchasers.
In order to notify future End Users who are purchasing residential lots or dwellings units
in the Service Area that they will be paying, in addition to the property taxes owed to other taxing
governmental entities, the property taxes imposed under the Debt Mill Levy, the Operating Mill
Levy and possibly the Regional Mill Levy, the District shall not be authorized to issue any Debt
under this Service Plan until there is included in the Developer’s Approved Development Plan
provisions that require the following:
1. That the Developer, and its successors and assigns, shall prepare and submit to the
City Manager for his approval a disclosure notice in substantially the form attached
hereto as Exhibit K (the “Disclosure Notice”);
2. That when the Disclosure Notice is approved by the City Manager, the Developer
shall record the Disclosure Notice in the Larimer County Clerk and Recorder’s
Office; and
3. That the approved Disclosure Notice shall be provided by the Developer, and by its
successors and assigns, to each potential End User purchaser of a residential lot or
dwelling unit in the Service Area before that purchaser enters into a written
agreement for the purchase and sale of that residential lot or dwelling unit.
F. External Financial Advisor.
An External Financial Advisor shall be retained by the District to provide a written opinion
as to whether any Debt issuance is in the best interest of the District once the total amount of Debt
issued by the District exceeds Five Million Dollars ($5,000,000). The External Financial Advisor
is to provide advice to the District Board regarding the proposed terms and whether Debt
conditions are reasonable based upon the status of development within the District, the projected
tax base increase in the District, the security offered and other considerations as may be identified
by the Advisor. The District shall include in the transcript of any Bond transaction, or other
appropriate financing documentation for related Debt instrument, a signed letter from the External
Financial Advisor providing an official opinion on the structure of the Debt, stating the Advisor’s
opinion that the cost of issuance, sizing, repayment term, redemption feature, couponing, credit
spreads, payment, closing date, and other material transaction details of the proposed Debt serve
the best interest of the District.
Debt shall not be undertaken by the District if found to be unreasonable by the External
Financial Advisor.
G. Disclosure to Debt Purchasers.
District Debt shall set forth a statement in substantially the following form:
“By acceptance of this instrument, the owner of this Debt agrees and
consents to all of the limitations with respect to the payment of the
principal and interest on this Debt contained herein, in the resolution
of the District authorizing the issuance of this Debt and in the
Service Plan of the District. This Debt is not and cannot be a Debt
of the City of Fort Collins”
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Similar language describing the limitations with respect to the payment of the principal 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 Service Area.
H. Security for Debt.
The District shall not pledge any revenue or property of the City as security for the
indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be construed
as a guarantee by the City of 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.
I. TABOR Compliance.
The District shall comply with the provisions of TABOR.the Taxpayer’s Bill of Rights in
Article X, § 20 of the Colorado Constitution (“TABOR”). In the discretion of the Board, the
District may set up other qualifying entities to manage, fund, construct and operate facilities,
services, and programs. To the extent allowed by law, any entity created by a District will remain
under the control of the District’s Board.
J. 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 [Dollar Amount], which will be eligible for reimbursement from
Debt proceeds.
In addition to the capital costs of the Public Improvements, the Districts will require
operating funds for administration and to plan and cause the Public Improvements to be operated
and maintained. The first year’s operating budget is estimated to be [Dollar Amount].
Ongoing administration, operations and maintenance costs may be paid from property
taxes collected through the imposition of an Operating Mill Levy, subject to the limitationsas set
forth in Section IX.B.3, as well as from other revenues legally available to the District.
X. REGIONAL IMPROVEMENTS
The District shall be authorized to provide for the planning, design, acquisition, funding,
construction, installation, relocation, redevelopment, administration and overhead costs related to
the provision of Regional Improvements. At the discretion of the City, the District shall impose a
Regional Improvement Mill Levy on all property within the District Boundaries and any properties
thereafter included in the Boundaries under the following terms:
A. Regional Mill Levy Authority.
The District shall seek the authority to impose an additional Regional Mill Levy of five (5)
mills as part of the District’s initial TABOR election. The District shall also seek from the
electorate in that election the authority under TABOR to enter into an intergovernmental
agreement with the City obligating the District to pay as a multiple-fiscal year obligation the
proceeds from the Regional Mill Levy to the City. Obtaining such voter-approval of the Regional
Mill Levy and this intergovernmental agreement shall be a precondition to the District issuing any
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Debt and imposing the Debt Mill Levy, the Operating Mill Levy and any Fees for the repayment
of Debt under this Service Plan.
B. Regional Mill Levy Imposition.
The District shall impose the Regional Mill Levy at a rate not to exceed five (5) mills within
one year of receiving written notice from the City Manager to the District requesting the imposition
of the Regional Mill Levy and stating the mill rate to be imposed.
C. City Notice Regarding Regional Improvements.
Such notice from the City shall provide a description of the Regional Improvements to be
constructed and an analysis explaining how the Regional Improvements will be beneficial to
property owners within the Service Area. The City shall make a good faith effort to require that
planned developments that (i) are adjacent to the Service Area and (ii) will benefit from the
Regional Improvement also impose a Regional Milly Levy, to the extent possible.
D. Regional Improvements Authorized Under Service Plan.
If so notified by the City Manager, the Regional Improvements shall be considered public
improvements that the District would otherwise be authorized to design, construct, install re-
design, re-construct, repair or replace pursuant to this Service Plan and applicable law.
E. Expenditure of Regional Mil Levy Revenues.
Revenue collected through the imposition of the Regional Mill Levy shall be expended as
follows:
1. Intergovernmental Agreement
If the City and the District have executed an intergovernmental agreement
concerning the Regional Improvements, then the revenue from the Regional Mill
Levy shall be used in accordance with such agreement;
2. No Intergovernmental Agreement
If no intergovernmental agreement exists between the District and the City, then
the revenue from the Regional Mill Levy shall be paid to the City, for use by the
City in the planning, designing, constructing, installing, acquiring, relocating,
redeveloping or financing of Regional Improvements which benefit the End Users
of the District as prioritized and determined by the City.
F. Regional Mill Levy Term.
The imposition of the Regional Mill Levy shall not exceed a term of twenty-five (25) years
from December 31 of the tax collection year after which the Regional Mill Levy is first imposed.
G. Completion of Regional Improvements.
All Regional Improvements shall be completed prior to the end of the twenty-five (25) year
Regional Mill Levy term.
H. City Authority to Require Imposition.
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The City’s authority to require the initiation of the imposition of a Regional Mill Levy shall
expire fifteen (15) years after December 31st of the year in which the District first imposes a Debt
Mill Levy.
I. Regional Mill Levy Not Included in Other Mill Levies.
The Regional Mill Levy imposed shall not be applied toward the calculation of the
Aggregate Mill Levy Maximum.
J. Gallagher Adjustment.
In the event the method of calculating assessed valuation is changed after the date of
approval of this Service Plan January 1, [current year], or any constitutionally mandated tax credit,
cut or abatement, the Regional Mill Levy may be increased or shall be decreased to reflect such
changes; such increases or decreases shall be determined by the District’s Board in good faith so
that to the extent possible, the actual tax revenues generated by the Regional Mill Levy, as
adjusted, are neither enhanced nor diminished as a result of such change occurring after January
1, [current year]. For purposes of the foregoing, a change in the ratio of actual valuation to
assessed valuation will be a change in the method of calculating assessed valuation.
XI. CITY FEES
The District shall pay all applicable City fees as required by the City Code.
XII. BANKRUPTCY LIMITATIONS
All of the limitations contained in this Service Plan, including, but not limited to, those
pertaining to the Aggregate Mill Levy Maximum, Maximum Debt Mill Levy Imposition Term and
Fees, have been established under the authority of the City in the Special District Act to approve
this Service Plan. It is expressly intended that by such approval such limitations: (i) shall not be
set aside for any reason, including by judicial action, absent a Service Plan Amendment; and (ii)
are, together with all other requirements of State 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 non-bankruptcy
law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section
943(b)(6).
XIII. ANNUAL REPORTS AND BOARD MEETINGS
A. General.
The District shall be responsible for submitting an annual report to the City Clerk no later
than September 1st of each year following the year in which the Order and Decree creating the
District has been issued. The annual reportse documents may be made available to the public on
the City’s website.
B. Board Meetings.
The District’s board of directors shall hold at least one public board meeting in three of the
four quarters of each calendar year, beginning in the first full calendar year after the District’s
creation. Notice for each of these meetings shall be given in accordance with the requirements of
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the Special District Act and other applicable State Llaw. This meeting requirement shall not apply
until there is at least one End User of property within the District. Also, Tthis requirement shall
not longer apply when a majority of the board of directors on the District’s Board are End Users.
C. Report Requirements.
Unless waived in writing by the City Manager, the District annual report must include the
following in the Annual Report:
1. Narrative
A narrative summary of the progress of the District in implementing its Service
Plan for the report year.
2. Financial Statements
Except when exemption from audit has been granted for the report year under the
Local Government Audit Law, the audited financial statements of the District for
the report year including a statement of financial condition (i.e., balance sheet) as
of December 31 of the report year and the statement of operation (i.e., revenue and
expenditures) for the report year.
3. Capital Expenditures
Unless disclosed within a separate schedule to the financial statements, a summary
of the capital expenditures incurred by the District in development of improvements
in the report year.
4. Financial Obligations
Unless disclosed within a separate schedule to the financial statements, a summary
of financial obligations of the District at the end of the report year, including the
amount of outstanding Debt, the amount and terms of any new District Debt issued
in the report year, the total assessed valuation of all Taxable Property within the
Service Area as of January 1 of the report year and the current total District mill
levy pledged to Debt retirement in the report year.
5. Board Contact Information
The names and contact information of the current board membersdirectors on the
District’s Board, any District manager and the attorney for the District shall be
listed in the report. The District’s current office address, phone number, email
address and any website address shall also be listed in the report.
6. Other Information
Any other information deemed relevant by the City Council or deemed reasonably
necessary by the City Manager.
D. Reporting of Significant Events.
The annual report shall also include information as to any of the following that occurred
during the report year:
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1. Boundary changes made or proposed to the District Boundaries as of December
31 of the report year.
2. Intergovernmental Agreements with other governmental entities, either entered
into or proposed as of December 31 of the report year.
3. Copies of the District’s rules and regulations, if any, or substantial changes to
the District’s rules and regulations as of December 31 of the report year.
4. A summary of any litigation which involves the District’s Public Improvements
as of December 31 of the report 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 report
year.
6. Notice of any uncured events of default by the District, which continue beyond
a ninety (90) day period, under any Debt instrument.
7. 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.
E. Failure to Submit.
In the event the annual report is not timely received by the City Clerk or is not fully
responsive, notice of such default shall be given to the District Board at its last known address.
The failure of the District to file the annual report within forty-five (45) days of the mailing of
such default notice by the City Clerk may constitute a material modification of the Service Plan,
at the discretion of the City Manager.
XIV. SERVICE PLAN AMENDMENTS
This Service Plan is general in nature and does not include specific detail in some instances.
The Service Plan has been designed with sufficient flexibility to enable the District to provide
required improvements, services and facilities under evolving circumstances without the need for
numerous amendments. Modification of the general types of improvements and facilities making
up the Public Improvements, and changes in proposed configurations, locations or dimensions of
the Public Improvements, shall be permitted to accommodate development needs provided such
Public Improvements are consistent with the then-current Approved Development Plans for the
Project and any agreement approved by the City Council pursuant to Section IV.B of this Service
Plan. Any action of the District, which is a material modification of this Service Plan requiring a
Service Plan Amendment as provided in in Section XV below or any other applicable provision of
this Service Plan or that does not comply with provisions of this Service Plan, shall be deemed to
be a material modification to this Service Plan unless otherwise expressly provided in this Service
Plan. All other departures from the provisions of this Service Plan shall be considered on a case-
by-case basis as to whether such departures are a material modification under this Service Plan or
the Special District Act.
XV. MATERIAL MODIFICATIONS
Material modifications to this Service Plan may be made only in accordance with C.R.S.
Section 32-1-207 as a Service Plan Amendment. No modification shall be required for an action
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of the District that does not materially depart from the provisions of this Service Plan, unless
otherwise provided in this Service Plan.
Departures from the Service Plan that constitute a material modification requiring a Service
Plan Amendment include, without limitation:
1. Actions or failures to act that create materially greater financial risk or burden to
the taxpayers of the District;
2. Performance of a service or function, construction of an improvement, or
acquisition of a major facility that is not closely related to an improvement, service,
function or facility authorized in the Service Plan;
3. Failure to perform a service or function, construct an improvement or acquire a
facility required by the Service Plan; and
4. Failure to comply with any of the preconditions, prohibitions, limitations and
restrictions of this Service Plan.
Actions that are not to be considered material modifications include without limitation
changes in quantities of improvements, facilities or equipment; immaterial cost differences; and
actions expressly authorized in this Service Plan.
XVI. DISSOLUTION
Upon independent determination by the City Council that the purposes for which the
District was created have been accomplished, the District shall file a petition in district court for
dissolution as provided in the Special District Act. In no event shall dissolution occur until the
District has provided for the payment or discharge of all of its outstanding indebtedness and other
financial obligations as required pursuant to State law.
In addition, if within three (3) years from the date of the City Council’s approval of this
Service Plan no agreement contemplated under Section IV.B of this Service Plan has been entered
into by the City with the District and/or any Developer, despite the parties conducting good faith
negotiations attempting to do so, the City may opt to pursue the remedies available to it under
C.R.S. Section 32-1-701(3) in order to compel the District to dissolve in a prompt and orderly
manner. In such event: (i) the limited purposes and powers of the District, as authorized herein,
shall automatically terminate and be expressly limited to taking only those actions that are
reasonably necessary to dissolve; (ii) the Board of the District will be deemed to have agreed with
the City regarding its dissolution without an election pursuant to C.R.S. §32-1-704(3)(b); (iii) the
District shall take no action to contest or impede the dissolution of the District and shall
affirmatively and diligently cooperate in securing the final dissolution of the District, and (iv)
subject to the statutory requirements of the Special District Act, the District shall thereupon
dissolve.
XVII. SANCTIONS
Should the District undertake any act without obtaining prior City Council approval or
consent or City Manager approval or consent as required inunder this Service Plan, or that
constitutes a material modification to this Service Plan requiring a Service Plan Amendment as
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provided herein or under the Special Districts Act, or that does not otherwise comply with the
provisions of this Service Plan, the City Council may impose one (1) or more of the following
sanctions, as it deems appropriate:
1. Exercise any applicable remedy under the Special District Act;
2. Withhold the issuance of any permit, authorization, acceptance or other
administrative approval, or withhold any cooperation, necessary for the District’s
development or construction or operation of improvements or provision of services;
3. Exercise any legal remedy under the terms of any intergovernmental agreement
under which the District is in default; or
4. Exercise any other legal and equitable remedy available under the law, including
seeking prohibitory and mandatory injunctive relief against the District, to ensure
compliance with the provisions of the Service Plan or applicable law.
XVIII. INTERGOVERNMENTAL AGREEMENT WITH CITY
The District and the City shall enter into an intergovernmental agreement, the form of which
shall be in substantially the form attached hereto as Exhibit “L” and incorporated by reference
(the “IGA”). However, the City and the District may include such additional details, terms and
conditions as they deem necessary in connection with the Project and the construction and funding
of the Public Improvements and the Public Benefits. The District’s Board shall approve the IGA
at its first board meeting, unless agreed otherwise by the City Manager. Entering into this IGA is
a precondition to the District issuing any Debt or imposing any Debt Mill Levy, Operating Mill
Levy or Fee for the payment of Debt under this Service Plan. In addition, failure of the District to
enter into the IGA as required herein shall constitute a material modification of this Service Plan
and subject to the sanctions in Article XVII of this Service Plan. The City and the District may
amend the IGA from time-to-time provided such amendment is not in conflict with any provision
of this Service Plan.
XIX. CONCLUSION
It is submitted that this Service Plan, as required by C.R.S. Section 32-1-203(2), establishes
that:
1. There is sufficient existing and projected need for organized service in the Service Area
to be served by the District;
2. The existing service in the Service 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 Service
Area; and
4. The Service Area does have, and will have, the financial ability to discharge the
proposed indebtedness on a reasonable basis.
28
Revised: 1-18-19
XX. RESOLUTION OF APPROVAL
The District agrees to incorporate the City Council’s resolution approving this Service
Plan, including any conditions on any such approval, into the copy of the Service Plan presented
to the District Court for and in Larimer County, Colorado.
1
City of Fort Collins
Title 32 Metropolitan District Model Service Plan for Multiple Districts
This model service plan template should be referenced in conjunction with the
City of Fort Collins Policy for Reviewing Service Plans for Metropolitan
Districts.
ATTACHMENT 3
2
Table of Contents
INTRODUCTION ..............................................................................................................................................
Purpose and Intent .....................................................................................................................................
Need for District .........................................................................................................................................
Objective of the City regarding District’s Service Plan ................................................................................
Relevant Intergovernmental Agreements………………………………………………………………………………………………
City Approvals……………………………………………………………………………………………………………………………………….
DEFINITIONS ...................................................................................................................................................
BOUNDARIES AND LOCATION ........................................................................................................................
DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFIT & ASSESSED VALUATION ...........
Project and Planned Development .............................................................................................................
Public Benefits .............................................................................................................................................
Assessed Valuation .....................................................................................................................................
INCLUSION OF LAND IN THE SERVICE AREA ..................................................................................................
DISTRICT GOVERNANCE .................................................................................................................................
AUTHORIZED AND PROHIBITED POWERS .....................................................................................................
General Grant of Powers………………………………………………………………………………………………………………………..
Prohibited Improvements and Services and other Restrictions and Limitations .....................................
Eminent Domain Restriction ............................................................................................................
Fee Limitation ...................................................................................................................................
Operations and Maintenance ..........................................................................................................
Fire Protection Restriction ...............................................................................................................
Public Safety Services Restriction ....................................................................................................
Grants from Governmental Agencies Restriction ............................................................................
Golf Course Construction Restriction ................................................................................................
Television Relay and Translation Restriction ...................................................................................
Potable Water and Wastewater Treatment Facilities……………………………………………………………………
Sales and Use Tax Exemption Limitation .........................................................................................
Sub-district Restriction .....................................................................................................................
Initial Debt Limitation ......................................................................................................................
3
Privately Placed Debt Limitation ......................................................................................................
Special Assessments……………………………………………………………………………………………………………………..
PUBLIC IMPROVEMENTS AND ESTIMATED COSTS ........................................................................................
Development Standards .............................................................................................................................
Contracting ..................................................................................................................................................
Land Acquisition and Conveyance ..............................................................................................................
Equal Employment and Discrimination .......................................................................................................
FINANCIAL PLAN/PROPOSED DEBT ...............................................................................................................
Financial Plan ..............................................................................................................................................
Mill Levies ....................................................................................................................................................
Aggregate Mill Levy Maximum .........................................................................................................
Regional Mill Levy Not Included in Other Mill Levies .......................................................................
Operating Mill Levy ..........................................................................................................................
Assessed Value and Mill Levies ........................................................................................................
Gallagher Adjustments .....................................................................................................................
Excessive Mill Levy Pledges ...............................................................................................................
Refunding Debt ................................................................................................................................
Maximum Debt Authorization ..........................................................................................................
Maximum Voted Interest Rate and Underwriting Discount .......................................................................
Interest Rate and Underwriting Discount Certification ..............................................................................
Disclosure to Purchasers .............................................................................................................................
External Financial Advisor ...........................................................................................................................
Disclosure to Debt Purchasers ....................................................................................................................
Security for Debt .........................................................................................................................................
TABOR Compliance .....................................................................................................................................
District’s Operating Costs ............................................................................................................................
Regional Improvements .................................................................................................................................
Regional Mill Levy Authority .......................................................................................................................
Regional Mill Levy Imposition .....................................................................................................................
City Notice Regarding Regional Improvements ..........................................................................................
Regional Improvements Authorized Under Service Plan ............................................................................
Expenditure of Regional Mill Levy Revenues ..............................................................................................
4
Intergovernmental Agreement ........................................................................................................
No Intergovernmental Agreement ...................................................................................................
Regional Mill Levy Term ..............................................................................................................................
Completion of Regional Improvements ......................................................................................................
City Authority to Require Imposition ..........................................................................................................
Regional Mill Levy Not Included in Other Mill Levies .................................................................................
Gallagher Adjustment .................................................................................................................................
City Fees ..........................................................................................................................................................
Bankruptcy Limitations ..................................................................................................................................
Annual Reports and Board Meetings.............................................................................................................
General ........................................................................................................................................................
Board Meetings…………………………………………………………………………………………………………………………………….
Report Requirements ..................................................................................................................................
Narrative ...........................................................................................................................................
Financial Statements .........................................................................................................................
Capital Expenditures ........................................................................................................................
Financial Obligations .........................................................................................................................
Board Contact Information …………………………………………………………………………………………………………..
Other Information ............................................................................................................................
Reporting of Significant Events ...................................................................................................................
Failure to Submit .........................................................................................................................................
Service Plan Amendments .............................................................................................................................
Material Modifications ..................................................................................................................................
Dissolution ......................................................................................................................................................
Sanctions .........................................................................................................................................................
Conclusion ......................................................................................................................................................
Resolution of Approval ..................................................................................................................................
5
I. INTRODUCTION
A. Purpose and Intent.
The Districts, which are intended to be independent units of local government separate
and distinct from the City, are governed by this Service Plan, the Special District Act and
other applicable State law. Except as may otherwise be provided by State law, City Code or
this Service Plan, the Districts’ activities are subject to review and approval by the City
Council only insofar as they are a material modification of this Service Plan under C.R.S.
Section 32-1-207 of the Special District Act.
It is intended that the Districts will provide all ofor part of the Public Improvements
for the Project for the use and benefit of all anticipated inhabitants and taxpayers of the
District. The primary purpose of the Districts will be to finance the construction of these
Public Improvements by the issuance of Debt.
It is also intended under this Service Plan that no District shall be authorized to issue
any Debt, impose a Debt Mill Levy, Operating Mill Levy or impose any Fees for payment of
the Debt unless and until the delivery of applicable Public Benefits described in Section IV.B.
of this Service Plan has been secured in accordance with Section IV.B. of this Service Plan.
[Add if Applicable] It is further intended that this Service Plan also requires the Districts
to pay a portion of the cost of the Regional Improvements, as provided in X of this Service Plan,
as part of ensuring that those privately-owned properties to be developed in the District that benefit
from the Regional Improvements pay a reasonable share of the associated costs.
The Districts are not intended to provide ongoing operations and maintenance services
except as expressly authorized in this Service Plan.
It is the intent of the Districts to dissolve upon payment or defeasance of all Debt incurred
or upon a court determination that adequate provision has been made for the payment of all Debt,
except that if the Districts are authorized in this Service Plan to perform continuing operating or
maintenance functions, the Districts shall continue in existence for the sole purpose of providing
such functions and shall retain only the powers necessary to impose and collect the taxes or Fees
authorized in this Service Plan to pay for the costs of those functions.
It is intended that the Districts shall comply with the provisions of this Service Plan
and that the City may enforce any non-compliance with these provisions as provided in
Section XVII of this Service Plan.
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 and financing
6
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 Districts’ Service Plan.
The City’s objective in approving this Service Plan is to authorize the Districts to provide
for the planning, design, acquisition, construction, installation, relocation and redevelopment of
the Public Improvements from the proceeds of Debt to be issued by the Districts. but in doing so,
to also establish in this Service Plan the means by which both the Regional Improvements and the
Public Benefits will be provided. Except as specifically provided in this Service Plan, all Debt is
expected to be repaid by taxes and Fees imposed and collected for no longer than the Maximum
Debt Mill Levy Imposition Term for residential properties., and at aA tax mill levy may not
exceedno higher than the Maximum Debt Mill Levy. Fees imposed for the payment of Debt shall
be due no later than upon the issuance of a building permit unless a majority of the Board which
imposes such a Fee is composed of End Users as provided in Section VII.B.2 of this Service Plan.
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.
D. Relevant Intergovernmental Agreements.
[Add description of any relevant intergovernmental agreements.]
E. City Approvals.
Any provision in this Service Plan requiring “City” or “City Council” approval or consent
shall require the City Council’s prior written approval or consent exercised in its sole discretion.
Any provision in this Service Plan requiring “City Manager” approval or consent shall require the
City Manager’s prior written approval or consent exercised in the City Manager’s sole discretion.
II. DEFINITIONS
In this Service Plan, the following words, terms and phrases which appear in a capitalized
format shall have the meaning indicated below, unless the context clearly requires otherwise:
Aggregate Mill Levy: means the total mill levy resulting from adding the Districts’ Debt
Mill Levy and Operating Mill Levy. The Districts’ Aggregate Mill Levy does not include
any Regional Mill Levy that the District may levy.
Aggregate Mill Levy Maximum: means the maximum number of combined mills that the
Districts may each levy for their Debt Mill Levy and Operating Mill Levy, at a rate not to
exceed the limitation set in Section IX.B.1 of this Service Plan.
Approved Development Plan: means a City-approved development plan or other land-use
application required by the City Code for identifying, among other things, public
improvements necessary for facilitating the development of property within the Service
7
Area, which plan shall include, without limitation, any development agreement required
by the City Code.
Board or Boards: means the duly constituted Board or Boards of Directors of the Districts,
or the boards of directors of all of the Districts in the aggregate.
Bond, Bonds or Debt: means bonds, notes or other multiple fiscal year financial obligations
for the payment of which a District has promised to impose an ad valorem property tax
mill levy, Fees or other legally available revenue. Such terms do not include contracts
through which a District procures or provides services or tangible property.
City: means the City of Fort Collins, Colorado, a home rule municipality.
City Code: means collectively the City’s Municipal Charter, Municipal Code, Land Use
Code and ordinances as all are now existing and hereafter amended.
City Council: means the City Council of the City of Fort Collins, Colorado.
City Manager: means the City Manager of the City of Fort Collins, Colorado.
C.R.S.: means the Colorado Revised Statutes.
Debt Mill Levy: means a property tax mill levy imposed on Taxable Property by the
Districts for the purpose of paying Debt as authorized in this Service Plan, at a rate not to
exceed the limitations set in Section IX.B of this Service Plan.
Developer: means a person or entity that is the owner of property or owner of contractual
rights to property in the Service Area that intends to develop the property.
Developer Obligation: means any agreement executed by the District for the purpose of
borrowing funds from any Developer or related party developing or selling land within the
Service Area or who is a member of the Board.
District: means any one of the [Names of Districts], individually, organized under and
governed by this Service Plan.
Districts: means the [Names of Districts], collectively, organized and governed under this
Service Plan.
District No. 1 Boundaries: means the boundaries of the area legally described in Exhibit
“A-1” attached hereto and incorporated by reference and as depicted in the District No. 1
Boundary Map.
District No. 2 Boundaries: means the boundaries of the area legally described in Exhibit
“A-2” attached hereto and incorporated by reference and as depicted in the District No. 2
Boundary Map.
District No. 3 Boundaries: means the boundaries of the area legally described in Exhibit
“A-3” attached hereto and incorporated by reference and as depicted in the District No. 3
Boundary Map.
District No. 1 Boundary Map: means the map of the District No. 1 Boundaries attached
hereto as Exhibit “B-1” and incorporated by reference.
District No. 2 Boundary Map: means the map of the District No. 2 Boundaries attached
hereto as Exhibit “B-2” and incorporated by reference.
8
District No. 3 Boundary Map: means the map of the District No. 3 Boundaries attached
hereto as Exhibit “B-3” and incorporated by reference.
End User: means any owner, or tenant of any owner, of any property within the Districts,
who is intended to become burdened by the imposition of ad valorem property taxes and/or
Fees. By way of illustration, a resident homeowner, renter, commercial property owner or
commercial tenant is an End User. A Developer and any person or entity that constructs
homes or commercial structures is not an End User.
External Financial Advisor: means a consultant that: (1) is qualified to advise 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; (2) shall be an underwriter, investment banker, or individual listed as a
public finance advisor in the Bond Buyer’s Municipal Market Place or, in the City’s sole
discretion, other recognized publication as a provider of financial projections; and (3) is
not an officer or employee of the Districts or an underwriter of the Districts’ Debt.
Fees: means the fees, rates, tolls, penalties and charges the Districts are authorized to
impose and collect under this Service Plan.
Financial Plan: means the Financial Plan described in Section IX of this Service Plan which
iswas prepared or approved by [Name], an External Financial Advisor, in accordance with
the requirements of this Service Plan and describes (a) how the Public Improvements are
to be financed; (b) how the Debt is expected to be incurred; and (c) the estimated operating
revenue derived from property taxes and any Fees for the first budget year through the year
in which all District Debt is expected to be defeased or paid in the ordinary course. In the
event the Financial Plan is not prepared by an External Financial Advisor, the Financial Plan
is to be accompanied by a letter of support from an External Financial Advisor.
Inclusion Area Boundaries: means the boundaries of the property that is anticipated to be
added to the Districts’ Boundaries after the Districts’ organization, which property is
legally described in Exhibit “C” attached hereto and incorporated by reference and
depicted in the map attached hereto as Exhibit “D” and incorporated herein by reference.
Maximum Debt Authorization: means the total Debt the Districts are permitted to issue as
set forth in Section IX.B.87 of this Service Plan.
Maximum Debt Mill Levy Imposition Term: means the maximum term during which the
Districts’ Debt Mill Levy may be imposed on property developed in the Service Area for
residential use, which shall include residential properties in mixed-use developments. This
maximum term shall not exceed forty (40) years from December 31 of the year this Service
Plan is approved by City Council
Operating Mill Levy: means a property tax mill levy imposed on Taxable Property for the
purpose of funding the Districts’ administration, operations and maintenance as authorized
in this Service Plan, including, without limitation, repair and replacement of Public
Improvements, and imposed at a rate not to exceed the limitations set in Section IX.B of
this Service Plan.
9
Planned Development: means the private development or redevelopment of the properties
in the Service Area, commonly referred to as the [Name] development, under an Approved
Development Plan.
Project: means the installation and construction of the Public Improvements for the Planned
Development.
Public Improvements: means the improvements and infrastructure the Districts are
authorized by this Service Plan to fund and construct for the Planned Development to serve
the future taxpayers and inhabitants of the Districts, except as specifically prohibited or
limited in this Service Plan. Public Improvements shall include, without limitation, the
improvements and infrastructure described in Exhibit “E” attached hereto and
incorporated by reference. Public Improvements do not include Regional Improvements.
Regional Improvements: means any regional public improvement identified by the City, as
provided in Section X of this Service Plan, for funding, in whole or part, by a Regional
Mill Levy levied by the Districts, including, without limitation, the public improvements
described in Exhibit “F” attached hereto and incorporated by reference.
Regional Mill Levy: means the property tax mill levy imposed on Taxable Property for the
purpose of planning, designing, acquiring, funding, constructing, installing, relocating
and/or redeveloping the Regional Improvements and/or to fund the administration and
overhead costs related to the Regional Improvements as provided in Section X of this
Service Plan.
Service Area: means the property collectively within the District No 1 Boundaries, the
District No. 2 Boundaries, the District No. 3 Boundaries and the property in the Inclusion
Area Boundaries when it is added, in whole or part.
Special District Act: means Article 1 in Title 32 of the Colorado Revised Statutes, as
amended.
Service Plan: means this service plan for the Districts approved by the City Council.
Service Plan Amendment: means a material modification of the Service Plan approved by
the City Council in accordance with the Special District Act, this Service Plan and any
other applicable law.
State: means the State of Colorado.
Taxable Property: means the real and personal property within the Service Area that will
be subject to the ad valorem property taxes imposed by the Districts.
TABOR: means Colorado’s Taxpayer’s Bill of Rights in Article X, Section 20 of the
Colorado Constitution.
Vicinity Map: means the map attached hereto as Exhibit “G” and incorporated by
reference depicting the location of the Service Area within the regional area surrounding
it.
III. BOUNDARIES AND LOCATION
The Service Area, without the Inclusion Area Boundaries, includes approximately [Insert
Number] acres and the total area proposed to be included in the Inclusion Area Boundaries is
10
approximately [Insert Number] acres. A legal description and map of each of the Districts’
boundaries are attached hereto as Exhibits A-1, A-2 and A-3 and Exhibit B-1, B-2 and B-3,
respectively. A legal description and map of the Inclusion Area Boundaries are attached hereto as
Exhibit C and Exhibit D, respectively. It is anticipated that the boundaries of the Districts may
expand or contract from time to time as the Districts undertake inclusions or exclusions pursuant
to the Special District Act, subject to the limitations set forth in this Service Plan. The location of
the Service Area is depicted in the vicinity map attached as Exhibit G.
IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC
BENEFITS & ASSESSED VALUATION
A. Project and Planned Development.
[Describe the nature of the Project and Planned Development, estimated population at
build out, timeline for development, estimated assessed value after 5 and 10 years and estimated
sales tax revenue. Also, please identify all plans, including but not limited to Citywide Plans,
Small Area Plans, and General Development Plans that apply to any portion of the Districts’
Boundaries or Inclusion Area Boundaries and describe how the Project and Planned
Development are consistent with the applicable plans. Please state if the proposed Districts are
to be located within an urban renewal area and if the proposed development is anticipating the
use of tax increment financing (TIF). If the Districts intend to pursue TIF, please provide
information on how the TIF financing will interact with the Districts’ financing and how the
necessary Public Improvements will be shared across the two funding sources.]
Approval of this Service Plan by the City Council does not imply approval of the
development of any particular land-use for any specific area within the Districts. Any such
approval must be contained within an Approved Development Plan.
B. Public Benefits.
[Described the public benefits to be delivered by the Service Plan that comply with the
requirements of the City’s Metro District Service Plan Policy. The description must include
specific and measurable objectives for the public benefits to be delivered by the Service Plan.
Examples of specific and measurable approaches can be found in the City’s Metro District
Service Plan Policy.]
In addition to providing a portion of the Public Improvements and Regional Improvements,
the organization of the Districts is intended to enable the Project to deliver a number of
extraordinary direct and indirect public benefits, including: [Describe Public Benefits]
(collectively, the “Public Benefits”). The Public Benefits to be enabled under this Service Plan are
specifically described in Exhibit J attached hereto and incorporated herein by reference.
Therefore, notwithstanding any provision to the contrary contained in this Service Plan, no
District shall be authorized to issue any Debt or to impose a Debt Mill Levy or any Fees for
payment of Debt unless and until the delivery of the Public Benefits specifically related to the
phase of the Planned Development of a portion of the Project to be financed with such Debt, Debt
11
Mill Levy or Fees, are secured in a manner approved by the City Council. To satisfy this
precondition to the issuance of Debt and to the imposition of the Debt Mill Levy and Fees, delivery
of the Public Benefits for each phase of the Project and the Planned Development must be secured
by the following methods, as applicable:
1. For any portion of the Public Benefits to be provided by one or more of the Districts,
each such District must enter into an intergovernmental agreement with the City by
either (i) agreeing to provide those Public Benefits as a legally enforceable multiple-
fiscal year obligation of the District under TABOR, or (ii) securing performance of that
obligation with a surety bond, letter of credit or other security acceptable to the City,
and any such intergovernmental agreement must be approved by the City Council by
resolution;
2. For any portion of the Public Benefits to be provided by one or more Developers of the
Planned Development, each such Developer must either (i) enter into a development
agreement with the City under the Developer’s applicable Approved Development
Plan, which agreement must legally obligate the Developer to provide those Public
Benefits before the City is required to issue building permits and/or certificates of
occupancy for structures to be built under the Approved Development Plan for that
phase of the Planned Development, or (ii) secure such obligations with a surety bond,
letter of credit or other security acceptable to the City, and all such development
agreements must be approved by the City Council by resolution; or
3. For any portion of the Public Benefits to be provided in part by one or more of the
Districts and in part by one or more of the Developers, an agreement between the City
and the affected District(s) and Developers that secures such Public Benefits as legally
binding obligations using the methods described in subsections 1 and 2 above, and all
such agreements must be approved by the City Council by resolution.
C. Assessed Valuation.
The current assessed valuation of the Service Area is approximately [Dollar Amount]
and, at build out, is expected to be [Dollar Amount]. These amounts are expected to be sufficient
to reasonably discharge the Debt as demonstrated in the Financial Plan.
V. INCLUSION OF LAND IN THE SERVICE AREA
Other than the real property in the Inclusion Area Boundaries, the District shall not
addinclude any real property into the Service Area without the City’s Council’s prior written
approval and in compliance with the Special District Act. Once the District has issued Debt, it
shall not exclude real property from the Districts’ boundaries without the prior written consent of
the City Council.
VI. DISTRICT GOVERNANCE
The Districts’ Boards shall be comprised of persons who are a qualified “eligible electors”
of the Districts as provided in the Special District Act. It is anticipated that over time, the End
Users who are eligible electors will assume direct electoral control of the Districts’ Boards as
12
development of the Service Area progresses. The Districts shall not enter into any agreement by
which the End Users’ electoral control of any of the Boards is removed or diminished.
VII. AUTHORIZED AND PROHIBITED POWERS
A. General Grant of Powers.
The Districts shall have the power and authority to provide the Public Improvements, the
Regional Improvements and related operation and maintenance services, within and without the
Service Area, as such powers and authorities are described in the Special District Act, other
applicable State law, common law and the Colorado Constitution, subject to the prohibitions,
restrictions and limitations set forth in this Service Plan.
If, after the Service Plan is approved, any State law is enacted to grant additional powers
or authority to metropolitan districts by amendment of the Special District Act or otherwise, such
powers and authority shall not be deemed to be a part hereof. These new powers and authority
shall only be and available to be exercised by the Districts if the City Council first approves a
Service Plan Amendment to specifically allow the exercise of such powers or authority by the
Districts. Such approval by the City Council shall not constitute a Service Plan Amendment.
B. Prohibited Improvements and Services and other Restrictions and Limitations.
The Districts’ powers and authority under this Service Plan to provide Public
Improvements and services and to otherwise exercise its other powers and authority under the
Special District Act and other applicable State law, are prohibited, restricted and limited as
hereafter provided. Failure to comply with these prohibitions, restrictions and limitations shall
constitute a material modification under this Service Plan and shall entitle the City to pursue all
remedies available at law and in equity as provided in Sections XVII and XVIII of this Service
Plan:
1. Eminent Domain Restriction
The Districts shall not exercise their statutory power of eminent domain without first
obtaining resolution approval from the City Council. This restriction on the Districts’
exercise of the eminent domain power is being voluntarily acquiesced to by the
Districts and shall not be interpreted in any way as a limitation on the Districts’
sovereign powers and shall not negatively affect the Districts’ status as a political
subdivision of the State as conferred by the Special District Act.
2. Fee Limitation
AllAny Fees imposed for the repayment of Debt, if authorized by this Service Plan,
shall be authorized tonot be imposed by the Districts upon or collected from an End
User.all property within their respective boundaries only if such Fees are due and
payable no later than upon the issuance of a building permit by the City. In addition,
Fees imposed for the payment of Debt shall not be imposed unless and until the
requirements for securing the delivery of the District’s portion of the Public Benefits
have been satisfied in accordance with Section IV.B of this Service Plan.
Notwithstanding any of the foregoing, this Fee limitation shall not apply to any Fee
imposed to fund the operation, maintenance, repair or replacement of Public
13
Improvements or the administration of the Districts, nor shall this Fee limitation apply
to a District if a majority of the District’s Board is composed of End Users.
3. Operations and Maintenance
The primary purpose of the Districts is to plan for, design, acquire, construct, install,
relocate, redevelop and finance the Public Improvements. The Districts shall dedicate
the Public Improvements to the City or other appropriate jurisdiction or owners’
association in a manner consistent with the Approved Development Plan and the City
Code, provided that nothing herein requires the City to accept a dedication. The
Districts are specifically authorized to operate and maintain all or any part or all of the
Public Improvements not otherwise conveyed or dedicated to the City or another
appropriate governmental entity until the such time as the District is dissolved. The
Districts shall also be specifically authorized to conduct operations and maintenance
functions related to the Public Improvements that are not provided by the City or other
governmental entity, or to the extent that the Districts’ proposed operational and
maintenance functions included services or activities that exceed those provided by the
City or other governmental entity. Additionally, the Districts are authorized to operate
and maintain any part or all of the Public Improvements not otherwise conveyed or
dedicated to the City or another appropriate governmental entity until such time that
the Districts dissolve.
4. Fire Protection Restriction
The Districts are not authorized to plan for, design, acquire, construct, install, relocate,
redevelop, finance, own, operate or maintain fire protection facilities or services, unless
such facilities and services are provided pursuant to an intergovernmental agreement
with the Poudre Fire Authority. The authority to plan for, design, acquire, construct,
install, relocate, redevelop, finance, own, operate or maintain fire hydrants and related
improvements installed as part of the Project’s water system shall not be limited by this
subsection.
5. Public Safety Services Restriction
The Districts are not authorized to provide policing or other security services. However,
the District may, pursuant to C.R.S. § 32-1-1004(7), as amended, furnish security
services pursuant to an intergovernmental agreement with the City.
6. Grants from Governmental Agencies Restriction
The Districts shall not apply for grant funds distributed by any agency of the United
States Government or the State without the prior written approval of the City Manager.
This does not restrict the collection of Fees for services provided by the Districts to the
United States Government or the State.
7. Golf Course Construction Restriction
Acknowledging that the City has financed public golf courses and desires to coordinate
the construction of public golf courses within the City’s boundaries, the Districts shall
14
not be authorized to plan, design, acquire, construct, install, relocate, redevelop,
finance, own, operate or maintain a golf course unless such activity is pursuant to an
intergovernmental agreement with the City approved by the City Council.
8. Television Relay and Translation Restriction
The Districts are not authorized to plan for, design, acquire, construct, install, relocate,
redevelop, finance, own, operate or maintain television relay and translation facilities
and services, other than for the installation of conduit as a part of a street construction
project, unless such facilities and services are provided pursuant to prior written
approval from the City CouncilManager. as a Service Plan Amendment.
9. Potable Water and Wastewater Treatment Facilities
Acknowledging that the City and other existing special districts operating within the
City currently own and operate treatment facilities for potable water and wastewater
that are available to provide services to the Service Area, the Districts shall not plan,
design, acquire, construct, install, relocate, redevelop, finance, own, operate or
maintain such facilities without obtaining the City Council’s prior written approval
either by intergovernmental agreement or as a Service Plan Amendment.
10. Sales and Use Tax Exemption Limitation
The Districts shall not exercise any sales and use tax exemption otherwise available to
the Districts under the City Code.
11. Sub-district Restriction
The Districts shall not create any sub-district pursuant to the Special District Act
without the prior written approval of the City CouncilManager.
12. Privately Placed Debt Limitation
Prior to the issuance of any privately placed Debt, the Districts 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 C.R.S. Section 32-1-103(12)) 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.
13. Special Assessments
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The Districts shall not impose special assessments without the prior
written approval of the City Council.
VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS
Exhibit E summarizes the type of Public Improvements that are projected to be constructed
and/or installed by the Districts. The cost, scope, and definition of such Public Improvements may
vary over time. The total estimated costs of Public Improvements, as set forth in Exhibit H,
excluding any improvements paid for by the Regional Mill Levy necessary to serve the Planned
Development, are approximately [Dollar Amount] in [Year] dollars and total approximately
[Dollar Amount] in the anticipated year of construction dollars. The cost estimates are based upon
preliminary engineering, architectural surveys, and reviews of the Public Improvements set forth
in Exhibit E and include all construction cost estimates together with estimates of costs such as
land acquisition, engineering services, legal expenses and other associated expenses. Maps of the
anticipated location, operation, and maintenance of Public Improvements are attached hereto as
Exhibit I. Changes in the Public Improvements or cost, which are approved by the City in an
Approved Development Plan and any agreement approved by the City Council pursuant to Section
IV.B of this Service Plan, shall not constitute a Service Plan Amendment. In addition, due to the
preliminary nature of the Project, the City shall not be bound by this Service Plan in reviewing and
approving the Approved Development Plan and the Approved Development Plan shall supersede
the Service Plan with regard to the cost, scope, and definition of Public Improvements. Provided,
however, any agreement approved and entered into under Section IV.B of this Service Plan for the
provision of a Public Improvement that is also a Public Benefit, shall supersede both this Service
Plan and the applicable Approved Development Plan.
Except as otherwise provided by an agreement approved under Section IV.B of this Service
Plan: (i) Tthe design, phasing of construction, location and completion of Public Improvements
will be determined by the Districts to coincide with the phasing and development of the Planned
Development and the availability of funding sources.; (ii) Tthe Districts may, in their discretion,
phase the construction, completion, operation, and maintenance of Public Improvements or defer,
delay, reschedule, rephase, relocate or determine not to proceed with the construction, completion,
operation, and maintenance of Public Improvements, and such actions or determinations shall not
constitute a Service Plan Amendment;. and (iii) Tthe District shall also be permitted to allocate
costs between such categories of the Public Improvements as deemed necessary in its discretion.
The Public Improvements shall be listed using an ownership and maintenance matrix in
Exhibit E, either individually or categorically, to identify the ownership and maintenance
responsibilities of the Public Improvements.
The City Code has development standards, contracting requirements and other legal
requirements related to the construction and payment of public improvements and related to certain
operation activities. Relating to these, the Districts shall comply with the following requirements:
A. Development Standards.
The Districts shall ensure that the Public Improvements are designed and constructed in
accordance with the standards and specifications of the City Code and of other governmental
entities having proper jurisdiction, as applicable. The Districts directly, or indirectly through any
Developer, will obtain the City’s approval of civil engineering plans and will obtain applicable
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permits for construction and installation of Public Improvements prior to performing such work.
Unless waived by the City Council, the Districts shall be required, in accordance with the City
Code, to post a surety bond, letter of credit, or other approved development security for any Public
Improvements to be constructed by the Districts. Such development security may be released in
the City Managers discretion when the constructing District has obtained funds, through Debt
issuance or otherwise, adequate to insure the construction of the Public Improvements, unless such
release is prohibited by or in conflict with any City Code provision, or State law or any agreement
approved and entered into under Section IV.B of this Service Plan. Any limitation or requirement
concerning the time within which the City must review the Districts’ proposals or applications for
an Approved Development Plan or other land use approval is hereby waived by the Districts.
B. Contracting.
The Districts shall comply with all applicable State purchasing, public bidding and
construction contracting requirements and limitations.
C. Land Acquisition and Conveyance.
The purchase price of any land or improvements acquired by the Districts from the
Developer shall be no more than the then-current fair market value as confirmed by an independent
MAI appraisal for land and by an independent professional engineer for improvements. Land,
easements, improvements and facilities conveyed to the City shall be free and clear of all liens,
encumbrances and easements, unless otherwise approved by the City Manager prior to
conveyance. All conveyances to the City shall be by special warranty deed, shall be conveyed at
no cost to the City, shall include an ALTA title policy issued to the City, shall meet the
environmental standards of the City and shall comply with any other conveyance prerequisites
required in the City Code.
D. Equal Employment and Discrimination.
In connection with the performance of all acts or activities hereunder, the Districts shall
not discriminate against any person otherwise qualified with respect to its hiring, discharging,
promoting or demoting or in matters of compensation solely because of race, color, religion,
national origin, gender, age, military status, sexual orientation, gender identity or gender
expression, marital status, or physical or mental disability, and further shall insert the foregoing
provision in contracts or subcontracts entered into by the Districts to accomplish the purposes of
this Service Plan.
IX. FINANCIAL PLAN/PROPOSED DEBT
This Section IX of the Service Plan describes the nature, basis, method of funding and
financing limitations associated with the acquisition, construction, completion, repair,
replacement, operation and maintenance of Public Improvements.
Notwithstanding any provision to the contrary contained in this Service Plan, the Districts
shall not be authorized to impose the Debt Mill Levy, the Operating Mill Levy or any other taxes
or Fees for any purpose unless and until (a) the Districts and/or the Developer has obtained an
Approved Development Plan that secures the Public Benefits described in Section IV.B of this
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Service Plan, or (b) the City and Districts, at the City’s option, have entered into an
intergovernmental agreement securing the delivery of the Public Benefits described in Section
IV.B Failure to comply with this provision shall constitute a material modification under this
Service Plan and shall entitle the City to all remedies available at law and in equity as provided in
Section XVII of this Service Plan.
A. Financial Plan.
The Districts’ Financial Plan, attached as Exhibit J and incorporated by reference, reflects
the Districts’ anticipated schedule for incurring Debt to fund Public Improvements in support of
the Project. The Financial Plan also reflects the schedule of all anticipated revenues flowing to the
Districts derived from the Districts’ mill levies, Fees imposed by the Districts, specific ownership
taxes, and all other anticipated legally available revenues. The Financial Plan incorporates all of
the provisions of this Section IX. The Financial Plan is based on economic, political and industry
conditions as they presently exist and reasonable projections and estimates of future conditions.
These projections and estimates are not to be interpreted as the only method of implementation of
the District’s goals and objectives but rather a representation of one feasible alternative. Other
financial structures may be used so long as they are in compliance with this Service Plan. The
Financial Plan incorporates all of the provisions of this Article IX.
Based upon the assumptions contained therein, the Financial Plan projects the issuance of
Bonds to fund Public Improvements and anticipated Debt repayment based on the development
assumptions and absorptions of the property in the Service Area by End Users. The Financial Plan
anticipates that the Districts will acquire, construct, and complete all Public Improvements needed
to serve the Service Area.
The Financial Plan demonstrates that the Districts will have the financial ability to
discharge all Debt to be issued as part of the Financial Plan on a reasonable basis. Furthermore,
the Districts will secure the certification of an External Financial Advisor who will provide an
opinion as to whether such Debt issuances are in the best interest of the Districts at the time of
issuance.
B. Mill Levies.
It is anticipated that the Districts will impose a Debt Mill Levy and an Operating Mill Levy
on all property within the Service Area. In doing so, the following shall apply:
1. Aggregate Mill Levy Maximum
The Aggregate Mill Levy shall not exceed in any year the Aggregate Mill Levy
Maximum, which is fifty (50) mills.
2. Regional Mill Levy Not Included in Other Mill Levies
The Regional Mill Levy shall not be counted against the Aggregate Mill Levy
Maximum.
3. Operating Mill Levy
The Districts may each impose an Operating Mill Levy of up to fifty (50) mills until
the Districts imposes a Debt Mill Levy. Once a District imposes a Debt Mill Levy of
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any amount, that District’s Operating Mill Levy shall not exceed ten (10) mills at any
point.
4. Gallagher Adjustments
In the event the State’s method of calculating assessed valuation for the Taxable
Property changes after January 1, [current year] or approval of this Service Planany
constitutionally mandated tax credit, cut or abatement, the Districts’ Aggregate Mill
Levy, Debt Mill Levy, Operating Mill Levy, and Aggregate Mill Levy Maximum,
amounts herein provided may be increased or decreased to reflect such changes; such
increases or decreases shall be determined by the Districts’ Boards in good faith so that
to the extent possible, the actual tax revenues generated by such mill levies, as adjusted,
are neither enhanced nor diminished as a result of such change occurring after January
1, [current year]. For purposes of the foregoing, a change in the ratio of actual
valuation to assessed valuation will be a change in the method of calculating assessed
valuation.
5. Excessive Mill Levy Pledges
Any Debt issued with a mill levy pledge, or which results in a mill levy pledge, that
exceeds the Aggregate Mill Levy Maximum or the Maximum Debt Mill Levy
Imposition Term, shall be deemed a material modification of this Service Plan and shall
not be an authorized issuance of Debt unless and until such material modification has
been approved by a Service Plan Amendment.
6. Refunding Debt
The Maximum Debt Mill Levy Imposition Term may be exceeded for Debt refunding
purposes if: (1) a majority of the issuing District’s Board is composed of End Users
and have voted in favor of a refunding of a part or all of the Debt; or (2) such refunding
will result in a net present value savings.
7. Maximum Debt Authorization
The Districts anticipate approximately [Dollar Amount] in project costs in [Year]
dollars as set forth in Exhibit E and anticipate issuing approximately [Dollar Amount]
in Debt to pay such costs as set forth in Exhibit J, which Debt issuance amount shall
be the amount of the Maximum Debt Authorization. In addition, the District shall not
issue any Debt unless and until delivery of the District’s Public Benefits have been
secured as required in Section IV.B of this Service Plan. The Districts collectively
shall not issue Debt in excess of the Maximum Debt Authorization. Bonds, loans, notes
or other instruments which have been refunded shall not count against the Maximum
Debt Authorization. The Districts must seek obtain from the City Council a Service
Plan Amendment prior to issuing Debt in excess of the Maximum Debt
Authorization.prior resolution approval by the City Council to issue Debt in excess of
the Maximum Debt Authorization to pay the actual costs of the Public Improvements
set forth in Exhibit E plus inflation, contingencies and other unforeseen expenses
associated with such Public Improvements. Such approval by the City Council shall
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not constitute a material modification of this Service Plan requiring a Service Plan
Amendment so long as increases are reasonably related to the Public Improvements set
forth in Exhibit E and any Approved Development Plan.
C. Maximum Voted Interest Rate and Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt is issued.
The maximum interest rate on any Debt, including any defaulting interest rate, is not permitted to
exceed Twelve Percent (12%). The maximum underwriting discount shall be three percent (3%).
Debt, when issued, will comply with all relevant requirements of this Service Plan, the Special
District Act, other applicable State law and federal law as then applicable to the issuance of public
securities.
D. Interest Rate and Underwriting Discount Certification.
The Districts shall retain an External Financial Advisor to provide a written opinion on the
market reasonableness of the interest rate on any Debt and any underwriter discount payed by the
Districts as part of a Debt financing transaction. The Districts shall provide this written opinion
to the City before issuing any Debt based on it.
E. Disclosure to Purchasers.
In order to notify future End Users who are purchasing residential lots or dwellings units
in the Service Area that they will be paying, in addition to the property taxes owed to other taxing
governmental entities, the property taxes imposed under the Debt Mill Levy, the Operating Mill
Levy and possibly the Regional Mill Levy, the Districts shall not be authorized to issue any Debt
under this Service Plan until there is included in the Developer’s Approved Development Plan
provisions that require the following:
1. That the Developer, and its successors and assigns, shall prepare and submit to the
City Manager for his approval a disclosure notice in substantially the form attached
hereto as Exhibit K (the “Disclosure Notice”);
2. That when the Disclosure Notice is approved by the City Manager, the Developer
shall record the Disclosure Notice in the Larimer County Clerk and Recorders
Office; and
3. That the approved Disclosure Notice shall be provided by the Developer, and by its
successors and assigns, to each potential End User purchaser of a residential lot or
dwelling unit in the Service Area before that purchaser enters into a written
agreement for the purchase and sale of that residential lot or dwelling unit.
F. External Financial Advisor.
An External Financial Advisor shall be retained by the Districts to provide a written
opinion as to whether any Debt issuance is in the best interest of the Districts once the total amount
of Debt issued by the Districts exceeds Five Million Dollars ($5,000,000). The External Financial
Advisor is to provide advice to the Districts’ Boards regarding the proposed terms and whether
Debt conditions are reasonable based upon the status of development within the Districts, the
projected tax base increase in the Districts, the security offered and other considerations as may
be identified by the Advisor. The Districts shall include in the transcript of any Bond transaction,
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or other appropriate financing documentation for related Debt instrument, a signed letter from the
External Financial Advisor providing an official opinion on the structure of the Debt, stating the
Advisor’s opinion that the cost of issuance, sizing, repayment term, redemption feature,
couponing, credit spreads, payment, closing date, and other material transaction details of the
proposed Debt serve the best interest of the Districts.
Debt shall not be undertaken by the Districts if found to be unreasonable by the External
Financial Advisor.
G. Disclosure to Debt Purchasers.
Any Debt of the Districts shall set forth a statement in substantially the following form:
“By acceptance of this instrument, the owner of this Debt agrees and
consents to all of the limitations with respect to the payment of the
principal and interest on this Debt contained herein, in the resolution
of the District authorizing the issuance of this Debt and in the
Service Plan of the District. This Debt is not and cannot be a Debt
of the City of Fort Collins”
Similar language describing the limitations with respect to the payment of the principal 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 Service Area.
H. Security for Debt.
The Districts shall not pledge any revenue or property of the City as security for the
indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be construed
as a guarantee by the City of payment of any of the Districts’ 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 Districts in the payment of any such obligations.
I. TABOR Compliance.
The Districts shall comply with the provisions of TABORthe Taxpayer’s Bill of Rights in
Article X, § 20 of the Colorado Constitution (“TABOR”). In the discretion of the Districts’ Boards,
the Districts may set up other qualifying entities to manage, fund, construct and operate facilities,
services, and programs. To the extent allowed by law, any entity created by a District will remain
under the control of the District’s Board.
J. Districts’ Operating Costs.
The estimated cost of acquiring land, engineering services, legal services and
administrative services, together with the estimated costs of the Districts’ organization and initial
operations, are anticipated to be [Dollar Amount], which will be eligible for reimbursement from
Debt proceeds.
In addition to the capital costs of the Public Improvements, the Districts will require
operating funds for administration and to plan and cause the Public Improvements to be operated
and maintained. The first year’s operating budget is estimated to be [Dollar Amount].
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Ongoing administration, operations and maintenance costs may be paid from property
taxes collected through the imposition of an Operating Mill Levy, subject to the limitations set
forth in Section IX.B.3, as well as from other revenues legally available to the Districts.
X. REGIONAL IMPROVEMENTS
The Districts shall be authorized to provide for the planning, design, acquisition, funding,
construction, installation, relocation, redevelopment, administration and overhead costs related to
the provision of Regional Improvements. At the discretion of the City, the Districts shall impose
a Regional Improvement Mill Levy on all property within the Districts’ bBoundaries and any
properties thereafter included in the Boundaries under the following terms:
A. Regional Mill Levy Authority.
The Districts shall seek the authority to impose an additional Regional Mill Levy of five
(5) mills as part of the Districts’ initial TABOR election. The Districts shall also seek from the
electorate in that election the authority under TABOR to enter into an intergovernmental
agreement with the City obligating the Districts to pay as a multiple-fiscal year obligation the
proceeds from the Regional Mill Levy to the City. Obtaining such voter-approval of the Regional
Mill Levy and this intergovernmental agreement shall be a precondition to the Districts issuing
any Debt and imposing the Debt Mill Levy, the Operating Mill Levy and any Fees for the
repayment of Debt under this Service Plan.
B. Regional Mill Levy Imposition.
The Districts shall impose the Regional Mill Levy at a rate not to exceed five (5) mills
within one year of receiving written notice from the City Manager to the Districts requesting the
imposition of the Regional Mill Levy and stating the mill levy rate to be imposed.
C. City Notice Regarding Regional Improvements.
Such notice from the City shall provide a description of the Regional Improvements to be
constructed and an analysis explaining how the Regional Improvements will be beneficial to
property owners within the Service Area. The City shall make a good faith effort to require that
planned developments that (i) are adjacent to the Service Area and (ii) will benefit from the
Regional Improvement also impose a Regional Milly Levy, to the extent possible.
D. Regional Improvements Authorized Under Service Plan.
If so notified by the City Manager, the Regional Improvements shall be considered public
improvements that the Districts would otherwise be authorized to design, construct, install re-
design, re-construct, repair or replace pursuant to this Service Plan and applicable law.
E. Expenditure of Regional Mill Levy Revenues.
Revenue collected through the imposition of the Regional Mill Levy shall be expended as
follows:
1. Intergovernmental Agreement
If the City and the Districts have executed an intergovernmental agreement
concerning the Regional Improvements, then the revenue from the Regional Mill
Levy shall be used in accordance with such agreement;
2. No Intergovernmental Agreement
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If no intergovernmental agreement exists between the Districts and the City, then
the revenue from the Regional Mill Levy shall be paid to the City, for use by the
City in the planning, designing, constructing, installing, acquiring, relocating,
redeveloping or financing of Regional Improvements which benefit the End Users
of the Districts as prioritized and determined by the City.
F. Regional Mill Levy Term.
The imposition of the Regional Mill Levy shall not exceed a term of twenty-five (25) years
from December 31 of the tax collection year after which the Regional Mill Levy is first imposed.
G. Completion of Regional Improvements.
All Regional Improvements shall be completed prior to the end of the twenty-five (25) year
Regional Mill Levy term.
H. City Authority to Require Imposition.
The City’s authority to require the initiation of the imposition of a Regional Mill Levy shall
expire fifteen (15) years after December 31st of the year in which the Districts first imposes a Debt
Mill Levy.
I. Regional Mill Levy Not Included in Other Mill Levies.
The Regional Mill Levy imposed shall not be applied toward the calculation of the
Aggregate Mill Levy Maximum.
J. Gallagher Adjustment.
In the event the method of calculating assessed valuation is changed after the date of
approval of this Service Plan January 1, [current year], or any constitutionally mandated tax credit,
cut or abatement, the Regional Mill Levy may be increased or shall be decreased to reflect such
changes; such increases or decreases shall be determined by each of the Districts’ Boards in good
faith so that to the extent possible, the actual tax revenues generated by the Regional Mill Levy,
as adjusted, are neither enhanced nor diminished as a result of such change occurring after January
1, [current year]. For purposes of the foregoing, a change in the ratio of actual valuation to
assessed valuation will be a change in the method of calculating assessed valuation.
XI. CITY FEES
The Districts shall pay all applicable City fees as required by the City Code.
XII. BANKRUPTCY LIMITATIONS
All of the limitations contained in this Service Plan, including, but not limited to, those
pertaining to the Aggregate Mill Levy Maximum, Maximum Debt Mill Levy Imposition Term and
Fees, have been established under the authority of the City in the Special District Act to approve
this Service Plan. It is expressly intended that by such approval such limitations: (i) shall not be
set aside for any reason, including by judicial action, absent a Service Plan Amendment; and (ii)
are, together with all other requirements of State 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 non-bankruptcy
law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section
943(b)(6).
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XIII. ANNUAL REPORTS AND BOARD MEETINGS
A. General.
Each of th Districts shall be responsible for submitting an annual report to the City Clerk
no later than September 1st of each year following the year in which the Order and Decree creating
the Districts has been issued. The Districts may file a consolidated annual report. The annual
report(s) may be made available to the public on the City’s website.
B. Board Meetings.
Each of the Districts’ Boards shall hold at least one public board meeting in three of the
four quarters of each calendar year, beginning in the first full calendar year after the Districts’
creation. Notice for each of these meetings shall be given in accordance with the requirements of
the Special District Act and other applicable State Llaw. This meeting requirement shall not apply
until there is at least one End User of property within the District. Also, Tthis requirement shall
not longer apply when a majority of the directors on the District’s Board are End Users.
C. Report Requirements.
Unless waived in writing by the City Manager, each of the Districts’ annual reports must
include the following:
1. Narrative
A narrative summary of the progress of the District in implementing the Service
Plan for the report year.
2. Financial Statements
Except when exemption from audit has been granted for the report year under the
Local Government Audit Law, the audited financial statements of the District for
the report year including a statement of financial condition (i.e., balance sheet) as
of December 31 of the report year and the statement of operation (i.e., revenue and
expenditures) for the report year.
3. Capital Expenditures
Unless disclosed within a separate schedule to the financial statements, a summary
of the capital expenditures incurred by the District in development of improvements
in the report year.
4. Financial Obligations
Unless disclosed within a separate schedule to the financial statements, a summary
of financial obligations of the District at the end of the report year, including the
amount of outstanding Debt, the amount and terms of any new District Debt issued
in the report year, the total assessed valuation of all Taxable Property within the
Service Area as of January 1 of the report year and the current total District mill
levy pledged to Debt retirement in the report year.
5. Board Contact Information
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The names and contact information of the current directors on the District’s Board,
any District manager and the attorney for the District shall be listed in the report.
The District’s current office address, phone number, email address and any website
address shall also be listed in the report.
6. Other Information
Any other information deemed relevant by the City Council or deemed reasonably
necessary by the City Manager.
D. Reporting of Significant Events.
The annual report shall also include information as to any of the following that occurred
during the report year:
1. Boundary changes made or proposed to the District’s boundaries as of
December 31 of the report year.
2. Intergovernmental Agreements with other governmental entities, either entered
into or proposed as of December 31 of the report year.
3. Copies of the District’s rules and regulations, if any, or substantial changes to
the District’s rules and regulations as of December 31 of the report year.
4. A summary of any litigation which involves the District’s Public Improvements
as of December 31 of the report 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 report
year.
6. Notice of any uncured events of default by the District, which continue beyond
a ninety (90) day period, under any Debt instrument.
7. 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.
E. Failure to Submit.
In the event the annual report is not timely received by the City Clerk or is not fully
responsive, notice of such default shall be given to the District’s Board at its last known address.
The failure of the District to file the annual report within forty-five (45) days of the mailing of
such default notice by the City Clerk may constitute a material modification of this Service Plan,
in the discretion of the City Manager.
XIV. SERVICE PLAN AMENDMENTS
This Service Plan is general in nature and does not include specific detail in some instances.
The Service Plan has been designed with sufficient flexibility to enable the Districts to provide
required improvements, services and facilities under evolving circumstances without the need for
numerous amendments. Modification of the general types of improvements and facilities making
up the Public Improvements, and changes in proposed configurations, locations or dimensions of
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the Public Improvements, shall be permitted to accommodate development needs provided such
Public Improvements are consistent with the then-current Approved Development Plans for the
Project and any agreement approved by the City Council pursuant to Section IV.B of this Service
Plan. Any action of one or more of the Districts, which is a material modification of this Service
Plan requiring a Service Plan Amendment as provided in in Section XV below or any other
applicable provision of this Service Plan or that does not comply with provisions of this Service
Plan, shall be deemed to be a material modification to this Service Plan unless otherwise expressly
provided in this Service Plan. All other departures from the provisions of this Service Plan shall
be considered on a case-by-case basis as to whether such departures are a material modification
under this Service Plan or the Special District Act.
XV. MATERIAL MODIFICATIONS
Material modifications to this Service Plan may be made only in accordance with C.R.S.
Section 32-1-207 as a Service Plan Amendment. No modification shall be required for an action
of the Districts that does not materially depart from the provisions of this Service Plan, unless
otherwise provided in this Service Plan.
Departures from the Service Plan that constitute a material modification requiring a Service
Plan Amendment include, without limitation:
1. Actions or failures to act that create materially greater financial risk or burden to
the taxpayers of any of the Districts;
2. Performance of a service or function, construction of an improvement, or
acquisition of a major facility that is not closely related to an improvement, service,
function or facility authorized in the Service Plan;
3. Failure to perform a service or function, construct an improvement or acquire a
facility required by the Service Plan; and
4. Failure to comply with any of the prohibitions, limitations and restrictions of this
Service Plan.
Actions that are not to be considered material modifications include without limitation
changes in quantities of improvements, facilities or equipment; immaterial cost differences; and
actions expressly authorized in this Service Plan.
XVI. DISSOLUTION
Upon independent determination by the City Council that the purposes for which the
Districts were created have been accomplished, the Districts shall file a petition in district court
for dissolution as provided in the Special District Act. In no event shall dissolution occur until the
Districts have provided for the payment or discharge of all of its outstanding indebtedness and
other financial obligations as required pursuant to State law.
In addition, if within three (3) years from the date of the City Council’s approval of this
Service Plan no agreement contemplated under Section IV.B of this Service Plan has been entered
into by the City with any of the Districts and/or any Developer, despite the parties conducting good
faith negotiations attempting to do so, the City may opt to pursue the remedies available to it under
C.R.S. Section 32-1-701(3) in order to compel the Districts to dissolve in a prompt and orderly
manner. In such event: (i) the limited purposes and powers of the Districts, as authorized herein,
26
shall automatically terminate and be expressly limited to taking only those actions that are
reasonably necessary to dissolve; (ii) the Board of each of the Districts will be deemed to have
agreed with the City regarding its dissolution without an election pursuant to C.R.S. §32-1-
704(3)(b); (iii) the Districts shall take no action to contest or impede the dissolution of the Districts
and shall affirmatively and diligently cooperate in securing the final dissolution of the Districts,
and (iv) subject to the statutory requirements of the Special District Act, the Districts shall
thereupon dissolve.
XVII. SANCTIONS
Should any of the Districts undertake any act without obtaining prior City Council
approval or consent or City Manager approval or consent as required inunder this Service Plan, or
that constitutes a material modification to this Service Plan requiring a Service Plan Amendment
as provided herein or under the Special Districts Act, or that does not otherwise comply with the
provisions of this Service Plan, the City Council may impose one (1) or more of the following
sanctions, as it deems appropriate:
1. Exercise any applicable remedy under the Special District Act;
2. Withhold the issuance of any permit, authorization, acceptance or other
administrative approval, or withhold any cooperation, necessary for the District’s
development or construction or operation of improvements or provision of services;
3. Exercise any legal remedy under the terms of any intergovernmental agreement
under which the District is in default; or
4. Exercise any other legal and equitable remedy available under the law, including
seeking prohibitory and mandatory injunctive relief against the District, to ensure
compliance with the provisions of the Service Plan or applicable law.
XVIII. INTERGOVERNMENTAL AGREEMENT WITH CITY
Each of the Districts and the City shall enter into an intergovernmental agreement, the form of
which shall be in substantially the form attached hereto as Exhibit “L” and incorporated by
reference (the “IGA”). However, the City and the Districts may include such additional details,
terms and conditions as they deem necessary in connection with the Project and the construction
and funding of the Public Improvements and the Public Benefits. Each of the Districts’ Boards
shall approve the IGA at their first board meeting, unless agreed otherwise by the City Manager.
Entering into this IGA is a precondition to each the Districts issuing any Debt or imposing any
Debt Mill Levy, Operating Mill Levy or Fee for the payment of Debt under this Service Plan. In
addition, failure of any of the Districts to enter into the IGA as required herein shall constitute a
material modification of this Service Plan and subject to the sanctions in Article XVII of this
Service Plan. The City and the Districts may amend the IGA from time-to-time provided such
amendment is not in conflict with any provision of this Service Plan.
XVIII.XIX. CONCLUSION
It is submitted that this Service Plan, as required by C.R.S. Section 32-1-203(2), establishes
that:
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1. There is sufficient existing and projected need for organized service in the Service Area
to be served by the Districts;
2. The existing service in the Service Area to be served by the Districts is inadequate for
present and projected needs;
3. The Districts are capable of providing economical and sufficient service to the Service
Area; and
4. The Service Area does have, and will have, the financial ability to discharge the
proposed indebtedness on a reasonable basis.
XIX.XX. RESOLUTION OF APPROVAL
The Districts agree to incorporate the City Council’s resolution approving this Service
Plan, including any conditions on any such approval, into the copy of the Service Plan presented
to the District Court for and in Larimer County, Colorado.
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
12/17/18
10 am - noon
CIC Room - City Hall
Council Attendees: Mayor Wade Troxell, Ross Cunniff, Ken Summers
Staff: Darin Atteberry, Kelly DiMartino, Jeff Mihelich, Mike Beckstead, Erik Martin, Jerrod
Kinsman, Brian Hergott, Greg Yeager, Chief Swodoba, Josh Birks, Victoria Shaw, Travis
Storin, Gerry Paul, Jennifer Poznanovic, Wendy Williams, Andres Gavaldon, Michelle
Provaznik, Jim McDonald, Tyler Marr, Joe Wimmer, Judy Schmidt, John Duval, Ryan
Malarky, Zach Mozer, Jo Cech, Katie Ricketts, Carolyn Koontz
Others: Dale Adamy, R1ST.org, Kevin Jones, Chamber of Commerce
____________________________________________________________________________________
Meeting called to order at 10:05 am.
Approval of Minutes from the November 19th Council Finance Committee Meeting. Ken Summers moved for
approval. Mayor Troxell seconded the motion. Minutes were approved unanimously.
C. Metro District Policy Updates
Josh Birks, Director, Economic Sustainability
John Duval, Deputy City Attorney
EXECUTIVE SUMMARY
The purpose of this item is to present several changes to the Metro District Policy, adopted by City Council on
August 21, 2018, and changes to the accompanying Model Service Plan. These changes included clarification
regarding timing and deadlines for submittal and reflect changes to the Model Service Plan requested by Council
during their recent consideration of three service plans this past September. Aside from the timing changes to
the policy, these changes should be familiar to the Finance Committee (“Committee”) and City Council.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does the Committee support the proposed changes to the Metro District Policy and Model Service Plan?
BACKGROUND/DISCUSSION
On August 21, 2018, City Council adopted Resolution 2018-079 revising the Policy for Reviewing Service Plans of
Metropolitan Districts (the “Metro District Policy” or “Policy”) previously adopted by Council through Resolution
2008-069. The new policy made several fundamental changes to the previous policy. Shortly after adopting this
new policy, City Council considered and approved the Service Plans for three new Metro Districts. During
Council’s consideration of these items several changes were made to the service plans. Staff understood
ATTACHMENT 4
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Council’s direction in requesting these changes constituted precedent for the review of future service plans.
After Council’s review of the three most recent service plans, Staff met to debrief the process and discussed
opportunities for improvement. Both the changes requested by Council and several process improvements are
presented in this policy update.
Policy Changes & Process Improvements:
Staff proposes to revise the Metro District Policy in the following ways (listed in the order in which they appear
in the Policy):
1. Workforce Housing – This minor change adjusts the target Area Median Income (“AMI”) target range to
81 to 120 percent and adds the category to Exhibit A – Public Benefit Examples of the Policy.
2. Staff Response to Letter of Intent – To enhance clarity for applicants, the policy has been revised to
require staff respond to any Letter of Intent within thirty (30) days of receipt and payment of pre-
application fees.
3. Formal Application Submission Deadlines – To ensure adequate time for review and consideration, the
policy has been revised to include a deadline for formal application submittal that provides a minimum
of approximately 120 days for review. There are two deadlines each is linked to a potential election
date, either spring or fall.
4. Public Hearing Notice – This minor change shifts the Council Public Hearing section to a separate section
in the policy.
5. Council Public Hearing – This new section of the policy addresses the timing for Council to conduct a
public hearing requiring that the hearing occurs at least thirty (30) days prior to the final submission
date for the District Court to order an election. This should provide the Council a minimum of two (2)
regular council meetings to consider a service plan.
6. Order of Proceedings at Public Hearing – This is the largest change to the policy. This new section lays
out an order of proceedings for the public hearing that mirrors the development review hearing process.
The intent of this revision is to facilitate a more complete review of a proposed service plan allowing
Council to hear directly from the applicant.
A redline version of the Policy has been included for reference, see Attachment 2.
Model Service Plan Changes:
Staff proposes to revise the Model Service Plan (Exhibit B of the Policy) in the following ways (listed in no order):
1. Further Council Approval Required – No Debt, Debt Mill Levy, or Fees to pay debt may be issued or
collected until City Council approves an intergovernmental agreement and/or development agreement
securing the Public Benefits (Section IV.B(1-3)).
2. City may Dissolve a District for Inaction – Revisions to Section XVI now empower the City, at its option,
to dissolve the District if no intergovernmental agreement or development agreement has been
approved by City Council within three years of Service Plan approval.
3. Regional Improvements Clean-up – Several minor changes have been made throughout the document
to clean-up the commitment by a district to establish the ability to support Regional Improvements
through the imposition of a 5.000 mill levy.
4. Financial Plan – Clarifying language has been added to section IX.A indicating that the financial plan
attached to a service plan is based on “economic, political and industry conditions as they exist
presently and reasonable projections and estimates of future conditions.” Furthermore, the estimates
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and projections presented are not to “be interpreted as the only method of implementation of the
Districts’ goals and objectives…” This allows for the financial plan to adjust over time as long as those
adjustments comply with the terms of the Service Plan.
5. Maximum Debt Authorization – Section IX.B(7) has been revised to clarify the applicability of the
Maximum Debt Authorization excludes Intergovernmental Capital Pledge Agreements between two or
more of the Districts created by a given service plan.
6. Board Meetings – Language clarifying the requirement to have board meetings in three of the four
quarters shall not apply until there is at least one end user of property within a district and terminates
when most of the directors on a district’s board are end users.
7. Other Minor Changes - All other changes in the Model Service Plan are either refinements in the spirit of
the original Model Service Plan, minor in nature, or further changes for clarification.
8. Intergovernmental Agreement – Optional language will be added to allow for an intergovernmental
agreement between the City and metro districts as needed for some districts in order to provide
another tool for the City to enforce the approved service plan.
Discussion / Next Steps:
Changes requested during the review / approval of the last 3 service plans
Mayor Troxell; timeline compared to those 3 service plans that were recently approved
Josh Birks; we received all of the applications in July - requested submission deadlines
In order to be ready for election they are targeting
Josh Birks; We were not able to include a red line of the updated Service Plan in your packets today.
We are looking to bring these changes forward for Consent right after first of year so they are in place for any new
applicants that come in.
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Ross Cunniff; I am not happy with tax levels on the ones we approved. Permanently affordable - Do we need to
do anything in the example /model service plan to inform applicants of the requirements of list price + the
additional tax burden.
Josh Birks; I don’t think it would hurt for us to add that - I would rather be overly transparent than leave it to
question.
Ross Cunniff; if we advertise as affordable housing we need to be transparent
Mike Beckstead; the term which that applies to would be part of that transparency – is it 20 years or 40 years or
is it perpetual?
Ross Cunniff; says permanently affordable - I like that
Ken Summers; timeline - are we saying that if we miss a May 3rd application submittal that they have to wait until
the next year?
Josh Birks; if they submit by the 3rd Tuesday in May then we will make sure they get Council review in time for
them to make a November election – if they submit later we can’t guarantee
Work load and impacts - 3 that will move forward in 2019 – at least 2 more waiting on deck
In the budget - we anticipated revenue from 5 districts per year and we have appropriated to hire addn. staff for
processing. My expectation is that we will be seeing more of these now that there is a policy in place.
Ken Summers; so, you consider these clean up issues
Josh Birks; yes, language - financial plan language basically states that what is being presented is one outcome -
not to be considered debt as part of max debt. We will have a red line of the Model Service Plan available when
this comes forward to Council.
Mayor Troxell; thank you
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RESOLUTION 2019-016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A REVISED POLICY FOR REVIEWING SERVICE
PLANS OF METROPOLITAN DISTRICTS
WHEREAS, Title 32 of the Colorado Revised Statutes permits the organization of a
variety of governmental districts to finance, construct and operate certain public improvements
and services to serve the residents and businesses in those districts; and
WHEREAS, a metropolitan district (“Metro District”) is one such district and it is
specifically authorized to be organized under the Special District Act in Article 1 of Title 32 of
the Colorado Revised Statues (the “Act”); and
WHEREAS, before a Metro District can be organized within the boundaries of a
municipality, the Act requires that the governing body of the municipality approve by resolution
the Metro District’s proposed “Service Plan,” which is the document governing the Metro
District’s powers under the Act, such as its taxing power, power to issue debt, and the public
improvements and services it can provide (the “Service Plan”); and
WHEREAS, in July 2008, the City Council adopted Resolution 2008-069 in which it
approved a policy that sets forth various guidelines concerning the Council’s review and
approval of Metro District Service Plans (the “2008 Policy”); and
WHEREAS, the City Council considered and adopted the 2008 Policy for several
reasons, but primarily to address market conditions that were then adversely affecting
commercial development, including escalating costs to construct public infrastructure, so the
2008 Policy was approved to favor the use of Metro Districts for commercial development or
mixed-used developments in which no more than 10% of their assessed value would be
residential uses; and
WHEREAS, in the past few years, residential development has been facing similar
market conditions, including rising costs for land, water, infrastructure and construction, which is
creating a disincentive for residential development in the City to provide residents with the kind
of special benefits that would also help the City to achieve its various policy objectives, such as
affordable housing, environmental sustainability and smart growth; and
WHEREAS, on August 21, 2018, the City Council adopted Resolution 2018-079
approving a significant revision of the 2008 Policy to address these issues affecting residential
development (the “2018 Policy”); and
WHEREAS, since the adoption of the 2018 Policy, the Council has considered and
approved three sets of Metro Districts with each having significant residential development; and
WHEREAS, through this process City staff has identified and is proposing several
revisions to the 2018 Policy to implement both policy and process improvements and to also
revise the model Service Plans attached to the 2018 Policy; and
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WHEREAS, this revised 2018 Policy is attached as Exhibit “A” and incorporated herein
by reference (the “2019 Policy”); and
WHEREAS, the City Council finds that the adoption of the 2019 Policy is in the best
interest of the City and its residents, businesses and organizations, and that it is necessary for the
public’s health, safety and welfare.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the City Council hereby approves and adopts the 2019 Policy. The
2019 Policy shall replace and supersede the 2018 Policy regarding all Metro District Service
Plans and all material modifications of Service Plans considered by the City Council after the
adoption of this Resolution.
Section 3. That in approving and adopting the 2019 Policy, the City Council also
intends to reserve to itself the sole discretion to approve, or not, all future Service Plans and
material modifications to Service Plans regardless of the provisions of the 2019 Policy.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 5th
day of February, A.D. 2019.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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CITY OF FORT COLLINS POLICY FOR REVIEWING SERVICE PLANS FOR
METROPOLITAN DISTRICTS
February 5, 2019
Introduction.
This policy establishes the criteria, guidelines and processes to be followed by City Council and City staff
in considering and by applicants in submitting to the City service plans for the organization of
metropolitan districts or amendments to those plans (“Policy”), as provided in Colorado’s Special District
Act in Article 1 of Title 32 of the Colorado Revised Statutes (the “Act”). The Act provides that
metropolitan districts are quasi-municipal corporations and political subdivisions (“District”) that can be
organized within the boundaries of a municipality provided the municipality’s governing body approves
by resolution the proposed service plan for the District. Under the Act, the service plan constitutes the
document that delineates the specific powers and functions the District can exercise, including the
facilities and services it can provide, the taxes it can impose and its permitted financial arrangements
(the “Service Plan”). The Act requires Districts to conform to their Service Plans.
Section 1 – Policy Objectives and Statements.
A. This Policy generally supports the formation of a District where it will deliver extraordinary
public benefits that align with the goals and objectives of the City whether such extraordinary
public benefits are provided by the District or by the entity organizing the District because the
District exists to provide public improvements.
B. A District, when properly structured, can enhance the quality of development in the City. The
City is receptive to District formation that provides extraordinary public benefits which could not
be practically provided by the City or an existing public entity, within a reasonable time and on a
comparable basis. It is not the intent of the City to create multiple entities which would be
construed as competing or duplicative.
C. The approval of a District Service Plan is at the sole discretion of City Council, which may reject,
approve, or conditionally approve Service Plans on a case-by-case basis. Nothing in this Policy is
intended, nor shall it be construed, to limit this discretion of City Council, which retains full
authority regarding the approval, terms, conditions and limitations of all Service Plans.
D. Policy Objectives.
The City will evaluate a proposed District and its Service Plan based on the District’s ability to
deliver public benefits through extraordinary development outcomes, specific examples are
provided in Exhibit A and generally occur in the following four focus areas:
1. Environmental Sustainability Outcomes: Development of public improvements that deliver
or facilitate the delivery of specific and measurable environmental outcomes, including but
EXHIBIT A
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not limited to: (i) reduction of Green House Gases (“GHG”), (ii) conservation of water or
energy, (iii) encourage multimodal transportation, (iv) enhance community resiliency –
against future environmental events (e.g., flooding, drought, etc.); (v) increase renewable
energy capacity; and/or (vi) deliver other environmental outcomes.
2. Critical Public Infrastructure: Development of public improvements that address or facilitate
addressing significant infrastructure challenges previously identified by the City, either
within or proximate to the District, whether such improvements address a locally-significant
challenge or a City-wide challenge.
3. Smart Growth Management: Development of public improvements that deliver or facilitate
the delivery of specific design components that: (i) increase the density of development
within the District; (ii) establish, enhance or address the walkability and pedestrian
friendliness of the District; (iii) increase the availability of transit and/or multimodal oriented
facilities; (iv) create compelling public spaces; and/or (v) encourage mixed-use development
patterns.
4. Strategic Priorities: Development of public improvements that deliver or facilitate the
delivery of strategic priorities specified in the City’s existing long-term strategic planning
documents, such as City Plan, Affordable Housing Plan, Economic Health Strategic Plan, and
applicable Sub-Area Plans. These priorities include, but are not limited to:
a. Affordable Housing: Deliver or facilitate the delivery of additional affordable housing
units at the City’s defined level of Area Median Income (“AMI”) or below. The City
defines Affordable Housing as units affordable to a household earning 80 percent of
AMI.
b. Workforce Housing: Deliver or facilitate the delivery of workforce housing units in the
City’s defined range of AMI. For purposes of this policy, Workforce Housing units shall
be defined as units affordable to a household earning between 81 percent and 120
percent of AMI.
c. Infill/Redevelopment: Enable the infill or redevelopment of property within the City,
especially when such development is consistent with City Plan.
d. Economic Health Outcomes: Enable delivery of specific and measurable economic
outcomes, such as: (i) job growth; (ii) retention of an existing business; and/or (iii)
construction of a missing economic resource.
In determining whether a proposed District delivers extraordinary public benefits, the City may
consider: (i) ways in which the proposed improvements exceed the City’s minimum
requirements and standards; (ii) ways in which the existence of the District facilitates the
extraordinary public benefits and whether the extraordinary benefits are feasible without the
District; (iii) ways in which the proposed extraordinary benefits work together as a system to
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deliver greater benefit to the community than individually; and (iv) any other factors the City
deems relevant under the circumstances.
E. Policy Statements:
1. Limited Use: The City wishes to exact a high standard of use for Districts thereby limiting
their use. An applicant project is expected to deliver extraordinary benefits across multiple
City objectives two or more of the objectives described in Section 1.D. of this Policy.
2. Broad and Demonstrable Public Benefit: Districts are expected to provide broad public
benefit and the applicant will be asked to demonstrate and provide assurances of those
benefits. The City will utilize the Service Plans, development agreements, and other
contractual agreements to document and enforce District commitments.
3. District Governance: It is the intent of the City that owner/resident control of Districts occur
as early as feasible. Service Plans should include governance structures that encourage and
accommodate this. The use of control Districts (also known as “service” or “managing”
Districts) that allow developers to control the other Districts that provide the tax revenues
beyond the time needed to repay the issued debt, is to be discouraged.
4. Basic Infrastructure Improvements: A District proposing to fund basic infrastructure
improvements will not be favorably received except when used to offset higher costs
associated with delivering public benefit through extraordinary development outcomes (see
Exhibit A for examples).
5. Minimum District Size: A District proposed to issue less than $7 million of authorized debt
will not be considered.
Section 2 – Evaluation Criteria
A. To provide City Council with information and an assessment consistent with this Policy, staff will
review and report on District proposals in the following areas:
1. Public Benefit Assessment and Triple Bottom Line Scan: To comprehensively and
consistently evaluate District proposals, an interdisciplinary staff team, inclusive of
representatives from Planning, Economic Health, Sustainability, and other Departments as
appropriate, will be formed. This team will rely on the City’s Triple Bottom Line evaluation
approach, and other means, to assess a District proposal consistent with this Policy and City
goals and objectives more broadly.
2. Financial Assessment: All District proposals are required to submit a Financial Plan to the
City for review. Utilizing the District’s Financial Plan, and other supporting information
which may be necessary, the City will evaluate a District’s debt capacity and servicing ability.
Additionally, should a District desire to utilize District funding for basic infrastructure
4
improvements, as determined by the City in its sole discretion, staff will assess the value of
this benefit against the public benefits received in exchange.
3. Policy Evaluation: All proposals will be evaluated by City staff against this Policy and the
City’s “Model Service Plan” attached as Exhibit “B” for single-district Service Plans and as
Exhibit “C” for multi-district Service Plans, with any areas of difference being identified,
evaluated and reported to City Council.
Section 3 – Application Process
A. Process Overview: The application process is designed to provide early feedback to an applicant,
adequate time for a comprehensive staff review, and the appropriate steps and meeting
opportunities with decision makers.
B. Letter of Interest: Applicant will provide City with a Letter of Interest and pre-application fee
(refer to fees below). The Letter of Interest shall contain the following:
1. Summary narrative of the proposed development and District proposal.
2. Sketch plan showing: property location and boundaries; surrounding land uses; proposed
use(s); proposed improvements (buildings, landscaping, parking/drive areas, water
treatment/detention, drainage); existing natural features (water bodies, wetlands, large
trees, wildlife, canals, irrigation ditches); utility line locations (if known); and photographs
(helpful but not required).
3. Clear justification for why a District is needed.
4. Explanation of public benefits, making specific reference to this Policy and other relevant
City documents.
5. District proposal and Service Plan specifics, including: District powers and purpose; District
infrastructure and costs; mill levy rate (both debt and, operations and maintenance); term
of District; forecasted period of build-out; proposed timeline for formation; and current
development status of project.
C. Staff Response to Letter of Interest: Staff will provide a written response to a Letter of Interest
within thirty (30) days of receipt and payment of the pre-application hearing.
D. Preliminary Staff Meeting with Applicant (Optional): Based on an initial review of the Letter of
Interest, staff may meet with the applicant to discuss the District proposal, potential public
benefits, initial staff feedback, the evaluation process, fees, and other application elements.
E. Formal Application and Service Plan Submittal: Upon taking account of staff input, applicant may
submit a formal application for consideration following the requirements specified in the City’s
District Application, including the Service Plan in which the applicant shall highlight the
substantive provisions that deviate from this Policy and the applicable Model Service Plan
5
attached as Exhibit “B” or Exhibit “C”. The formal application and application fees must be
received by the City no later than the third Tuesday of December in the preceding year for a
spring election (May) or the third Tuesday of May for a fall election (November). The City cannot
commit to timely processing of applications submitted after these dates for their respective
elections.
F. Formal Staff Review: An interdisciplinary staff team will review the applicant submittal along
with any follow-up documentation that is requested in order to assess the application according
to this Policy and other appropriate City policy. Applicants should expect several rounds of
feedback and review from City staff.
G. Council Finance Committee Meeting: The Council Finance Committee will review all District
proposals and provide feedback and recommendations.
H. Council Work Session Meeting (optional): Based on the magnitude and complexity of the
development project and District proposal, staff and/or the Council Finance Committee may
recommend a Council Work Session.
I. Public Hearing Notice: The Service Plan Applicant must cause a written notice of the public
hearing to be mailed by first-class mail to all fee title owners of real property within the
boundaries of the proposed District(s) and of any future inclusion area proposed in the Service
Plan and such notice shall be mailed no later than thirty (30) days before the scheduled hearing
date. A notice shall also be published once in a newspaper of general circulation in the City no
later than thirty (30) days before the scheduled hearing date. The mailed and published notices
shall include the following information:
1. A description of the general nature of the public improvements and services to be provided
by the District;
2. A description of the real property to be included in the District and in any proposed future
inclusion area, with such property being described by street address, lot and block, metes
and bounds if not subdivided, or such other method that reasonably apprises owners that
their property will or could be included in the District’s boundaries;
3. A statement of the maximum amount of property tax mill levy that can be imposed on
property in the District under the proposed Service Plan;
4. A statement that property owners desiring to have the City Council consider excluding their
properties from the District must file a petition for exclusion with the Fort Collins City Clerk’s
Office no later than ten (10) days before the scheduled hearing date in accordance with
Section 32-1-203(3.5) of the Colorado Revised Statutes;
5. A statement that a copy of the proposed Service Plan can be reviewed in the Fort Collins City
Clerk’s Office; and
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6. The date, time and location of the City Council’s public hearing on the Service Plan.
J. Council Public Hearing: The City Council will conduct a noticed public hearing at a regular or
special Council meeting to consider resolution approval of Service Plan. This hearing will occur
no later than thirty (30) days prior to the final submittal date to the District Court to order an
election. By way of example, for a fall election City Council, which meets on the first and third
Tuesday’s of the month, must conduct the public hearing no later than the third Tuesday in
August.
K. Proceedings at Public Hearing: The hearing shall be conducted under and in accordance with the
applicable procedures of the City Council’s adopted “Rules of Procedure Governing the Conduct
of City Council Meetings and Work Sessions,” except that the order of the proceedings of the
public hearing on the service plan shall be as follows:
1. Announcement of item;
2. Consideration of any procedural issues;
3. Explanation of the application by City staff;
4. Presentation by the applicant;
5. Public testimony regarding the application;
6. Rebuttal testimony by the applicant;
7. Councilmember questions of City staff and the applicant; and
8. Motion, discussion and vote by City Council.
Section 4 –Service Plan
A. Purpose: In addition to the requirements of the Act, a Service Plan should memorialize the
understandings and agreements between the District and the City, as well as the considerations
that compelled the City to authorize the formation of the District. The Service Plan must also
include all applicable information required by the Act.
B. Compliance with Applicable Law: Any Service Plan submitted to the City for approval must
comply with all state, federal and local laws and ordinances, including the Act.
C. Model Service Plan: To clearly communicate City requirements and streamline legal review, the
City will require the use of the applicable Model Service Plan attached as Exhibit “B” or Exhibit
“C”. With justification, the City may consider deviations in the proposed Service Plan, but
generally all Service Plans should include the following:
1. Eminent Domain NOT Authorized: The Service Plan shall contain language that prohibits the
District from exercising the power of eminent domain. However, the City may choose to
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exercise its power of eminent domain to construct public improvements within the District
in which case the District and the City will enter into an intergovernmental agreement
concerning the public improvements and funding for that use of eminent domain.
2. Maximum Mill Levy: The Service Plan shall restrict the District’s total mill levy authorization
for both debt service and operations and maintenance to fifty (50) mills, subject to
adjustment as provided below. A portion of the Maximum Mill Levy may be utilized by the
District to fund operations and maintenance functions, including customary administrative
expenses incurred in operating the District such as accounting and legal expenses and
otherwise complying with applicable reporting requirements. No more than ten (10) mills
may be used for operations and maintenance (the “Operations and Maintenance Mill
Levy”).
a. Increased mill levies may be considered for Districts that are predominately commercial
in use, at the sole discretion of the City Council.
b. The Maximum Mill Levy may be adjustable from the base year of the District as provided
for in the Model Service Plan, so that to the extent possible, the actual tax revenues
generated by the District’s mill levy, as adjusted, for changes occurring after the base
year, are neither diminished nor enhanced as a result of the changes.
3. Debt Term Limit: A District shall be allowed no more than forty (40) years for the levy and
collection of taxes used to service debt unless a majority of the Board of Directors of the
District imposing the mill levy are residents of such District and have voted in favor of a
refunding of a part or all of the Debt and such refunding is for one or more of the purposes
authorized in C.R.S. Section 11-56-104.
4. District Dissolution: Perpetual Districts shall not be allowed except in cases where ongoing
operations and maintenance are required. Except where ongoing operations and
maintenance has been authorized, a District must be dissolved as soon as practical upon:
a. The payment of all debt and obligations; and
b. The completion of District development activity.
In addition, Districts shall have no more than three years from approval of the Service Plan
to secure City Council approval by resolution of an intergovernmental agreement and/or a
development agreement documenting the public benefits described in the Service Plan.
Staff will inform City Council, in writing, of any Districts that have not obtained this approval
ninety (90) days in advance of the expiration of the three-year period. This written notice
will provide a status update on the Districts progress towards obtaining Council approval
and the other activities of the Districts.
5. District Fees: Impact fees, development fees, service fees, and any other fees must be
identified with particularity in the District Service Plan. Impact and development fees must
8
not be levied or collected against the end user – i.e., residents and/or non-developer
owners.
6. Notice Requirements: The Service Plan shall require that the District use reasonable efforts
to assure that all developers of the property located within the District provide written
notice to all purchasers of property in the District regarding the District’s existing mill levies,
its maximum debt mill levy, as well as a general description of the District’s authority to
impose and collect rates, fees, tolls and charges. The form of notice shall be filed with the
City prior to the initial issuance of the debt of the District imposing the mill levy.
7. Annual Report: The Service Plan must obligate the District to file an annual report not later
than September 1 of each year with the City Clerk for the year ending the preceding
December 31, the requirements of which may be waived in whole or in part by the City
Manager. Details of the Annual Report are included in the Model Service Plan.
D. Service Plan Requirements: In additional to all other information required in a Service Plan by
the Act, a Service Plan must include the following:
1. Financial Plan: The Service Plan must include debt and operating financial projections
prepared by an investment banking firm or financial advisor qualified to make such
projections. The financial firm must be listed in the Bond Buyers Marketplace or, in the
City’s sole discretion, other recognized publication as a provider of financial projections. The
Financial Plan must include debt issuance and service schedules and calculations
establishing the District’s projected maximum debt capacity (the “Total Debt Limitation”)
based on assumptions of: (i) Projected Interest Rate on the debt to be issued; (ii) Projected
Assessed Valuation of the property within the District; and (iii) Projected Rate of Absorption
of the assessed valuation within the District. These assumptions must use market-based,
market comparable valuation and absorption data and may use an annual inflation rate of
three percent (3%) or the Consumer Price Index for the preceding 12-month period for the
Denver-Boulder-Greeley statistical region as prepared by the U.S. Department of Labor
Statistics, whichever is lesser.
a. Total Debt Limitation: The total debt authorized in the Service Plan must not exceed
100% of the projected maximum debt capacity as shown in the Financial Plan.
b. Administrative, Operational and Maintenance Costs: The Financial Plan must also
include foreseeable administrative, operational and maintenance costs.
2. Public Improvements and Estimated Costs: Every Service Plan must include, in addition to all
materials, plans and reports required by the Act, a summary of public improvements to be
constructed and/or installed by the district (the “Public Improvements”). The description of
these Public Improvements must include, at a minimum:
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1. A map or maps, and construction drawings of such a scale, detail and size as
required by the Planning Department, providing an illustration of public
improvements proposed to be built, acquired or financed by the District;
2. A written narrative and description of the public improvements; and
3. A general description of the District’s proposed role with regard to the same.
Due to the preliminary nature, the Service Plan must indicate that the City’s approval of the
Public Improvements shall not bind the City, its boards and commissions, and City Council in
any way relating to the review and consideration of land use applications within the District.
3. Intergovernmental Agreement: Any intergovernmental agreement which is required or
known at the time of formation of the District to likely be required, to fulfill the purposes of
the District, must be described in the Service Plan, along with supporting rationale. The
Service Plan must provide that execution of intergovernmental agreements which are likely
to cause substantial increase in the District’s budget and are not described in the Service
Plan will require the prior approval of City Council.
4. Extraterritorial Service Agreement: The Service Plan must describe any planned
extraterritorial service agreement. The Service Plan must provide that any extraterritorial
service agreement by the District that are not described in the Service Plan will require prior
approval of City Council.
Section 5 – Regional Improvements
A. Purpose: A Service Plan may include a section addressing the planning, design, acquisition,
funding, construction, installation, relocation and/or redevelopment of Regional Improvements.
Such section is intended to ensure that the privately-owned properties to be developed in a
District that benefit from the Regional Improvements pay a reasonable share of the associated
costs.
B. Eligible Improvements: The City, to facilitate transparency, will include a list or exhibit in any
Service Plan including a Regional Improvements section that clearly identifies the improvements
to be funded, in part or whole, by a Regional Mill to be levied by the District. In selecting
improvements to be included in a Service Plan the City will apply the following standards:
1. Benefit to End User – Regional Improvements should have a clear benefit to the private-
owned properties funding the Regional Mill Levy. The City may establish this connection
either through previous identification of the infrastructure need and/or through a technical
analysis, such as a traffic impact analysis.
2. Specificity – When possible, the City should include as much specificity about the Regional
Improvements to be included in a Service Plan as possible, while noting that any details are
preliminary and may be subject to change as planning, design, acquisition, funding,
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construction, installation, relocation and/or redevelopment of the Regional Improvements
occurs.
3. No Other Funding Exists – The City will exclude improvements, either in part or whole, for
which funding mechanisms exists to support the planning, design, acquisition, funding,
construction, installation, relocation and/or redevelopment. By way of example, the City
collects Capital Expansion Fees to support street oversizing, however, several bridge
structures necessary to facilitate grade separated crossings of railroad infrastructure were
not included in the calculation of these Fees; therefore, the bridges would be and eligible
Regional Improvement, where the road surface itself would not.
Section 5 – Fees
A. No request to create a Metro District shall proceed until the fees set forth herein are paid when
required. All checks are to be made payable to the City of Fort Collins and sent to the Economic
Health Office.
1. Letter of Intent Submittal Fee: A Letter of Intent is to be submitted to the City’s Economic
Health Office and a non-refundable $2,500 fee shall be paid at the time of submittal of the
Letter.
2. Application Fee: An application along with a draft Service Plan (based on the Model Service
Plan) is to be submitted to the City’s Economic Health Office and a $7,500 non-refundable
fee along with a $7,500 deposit towards the City’s other expenses shall be paid at the time
of submittal of the Application and draft Service Plan.
3. Annual Fee: Each District shall pay an annual fee for the City’s on-going monitoring of each
Metro District. This annual fee shall be $500 or if multiple Districts exist serving a single
project, then the annual fee shall be $500 plus $250 for each additional District beyond the
first (e.g., the annual fee for Consolidated ABC Metro Districts 1 to 7 shall be $500 plus $250
times six or $2,000).
4. Non-Model Service Plan Fee: A District proposal requesting a substantial deviation from this
Policy or the applicable Model Service Plan, shall pay an additional non-refundable fee of
$5,000 at the time of submitting its application; the City shall in its sole and reasonable
discretion determine if a draft Service Plan proposes a substantial deviation from this Policy
or the applicable Model Service Plan.
5. Other Expenses: If the deposits paid in subsections 2 and 6 are not sufficient to cover all the
City’s other expenses, the applicant for a District shall pay all reasonable consultant, legal,
and other fees and expenses incurred by the City in the process of reviewing the draft
Service Plan or amended Service Plan prior to adoption, documents related to a bond issue
and such other expenses as may be necessary for the City to incur to interface with the
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District. All such fees and expenses shall be paid within 30 days of receipt of an invoice for
these additional fees and expenses.
6. Service Plan Amendment Fee: If a proposed amendment to a Service Plan is submitted to
the City’s Economic Health Office, it should be submitted with a non-refundable $2,500 fee
along with a $2,500 deposit towards the City’s other expenses and shall be paid at the time
of submittal of the application and draft amended Service Plan.
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EXHIBIT A
PUBLIC BENEFIT EXAMPLES
The following list of examples is meant to be illustrative of the types of projects that deliver the defined
public benefits in this policy. Projects that deliver similar or better outcomes will also be considered on
their merits.
(Continued on next page)
Category / Sub-Category Example Projects
1. Green House Gas Reductions - See subsequent sub-categories
2. Water and/or Energy Conservation
- District-wide non-potable water system(s)
- District-wide renewable energy systems(s)
- Delivery of 20% or more rooftop solar
- Greywater reuse system(s) - if allowed by law
3. Multimodal Transportation
- Buffered bike lanes
- Wider than required sidewalks
- Enhanced pedestrian crossings
- Underpass(es)
4. Enhance Community Resiliency - Significant stormwater improvements (previously identified)
- Improvements to existing bridges
5. Increase Renewable Energy Capacity
- District-wide renewable energy systems(s)
- Set aside land for community solar garden(s)
- Utility scale renewable project(s)
1. Within District Area
- Community Park Land (beyond code requirements)
- Regional Stormwater Facilities
- Major arterial development
- Parking Structures (Publicly Accessible)
2. Adjacent to Proposed District - Contribution to major interchange/intersection
- Contribution to grade separated railroad crossings
Environmental Sustainability Outcomes
Critical Public Infrastructure
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Category / Sub-Category Example Projects
1. Increase density
- Alley load construction
- Smaller Lot Size
- Increased multifamily development
2. Walkability & Pedestrian Friendliness
- Wider than required sidewalks
- Enhanced pedestrian crossings
- Underpass(es)
- Trail system enhancements
3. Increase availablity of Transit
- Improved bus stops
- Restricted access guideways for bus operations
- Transfer facilities
4. Public Spaces - Pocket Parks
- Neighborhood Parks (beyond code requirements)
1. Affordable Housing - Units permanently affordable to 80% Area Median Income
- Land dedicated to City's land bank program
2. Attainable Housing - Units permanently affordable to 81 to 120% Area Median
Income
2. Infill/Redevelopment - Address environmental contamination / concern
- Consolidate wetlands or natural area (positive benefits)
3. Economic Health Outcomes - Facilitate job growth (at or above County median income)
- Retain an existing business
High Quality and Smart Growth Management
Strategic Priorities
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EXHIBIT B
MODEL SERVICE PLAN