HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/04/2018 - RESOLUTION 2018-084 APPROVING THE CONSOLIDATED SERAgenda Item 18
Item # 18 Page 1
AGENDA ITEM SUMMARY September 4, 2018
City Council
STAFF
Tom Leeson, Director, Comm Dev & Neighborhood Svrs
John Duval, Legal
SUBJECT
Resolution 2018-084 Approving the Consolidated Service Plan for Waters' Edge Metropolitan District Nos. 1-5.
EXECUTIVE SUMMARY
The purpose of this item is for Council to consider for adoption the Consolidated Service Plan for the Waters'
Edge Metropolitan District Nos.1-5 (the “Metro Districts”). Generally, located between Douglas Road and
Richards Lake Road on either side of Turnberry Road.
STAFF RECOMMENDATION
Staff recommends approval of the Resolution.
BACKGROUND / DISCUSSION
The developer of the Waters’ Edge project (“Project”) is proposing a multi-phase 235-acre development in Fort
Collins. (Attachment 1) The Project includes approximately 848 homes with a product type tailored to a
population that is 55 years and older (single-level, senior-friendly home design). Additionally, the Project is
proposed to include a future neighborhood commercial center, which could include up to 70,000 square feet in
commercial/retail space. The Project proposes five metro districts to provide and operate a non-potable water
system, provide enhanced parks and open space, rehabilitate the Windsor No. 8 ditch, and to provide other
lifestyle amenities to its residents (namely a sustainability center, and a senior activity center).
The Waters’ Edge Development has submitted the Consolidated Service Plan for Waters’ Edge Metropolitan
District Nos. 1-5 (the “Service Plan”). The five Metro Districts will be used to finance, construct, and operate
public infrastructure, and other site costs that reduce overall development costs.
Service Plan Overview
The Service Plan calls for the creation of the five Metro Districts to deliver certain public improvements for the
Project. The development is phased over time with an anticipated build out in 2027.
Service Plan Highlights:
• Assessed Value - Estimated to be approximately $43 million in 2028 (the first year of full value after build-
out)
• Aggregate Mill Levy - 50 mills, subject to Gallagher Adjustments
• Debt Mill Levy - 40 mills, which may not be levied until an approved development plan and/or
intergovernmental agreement has been executed that delivers the pledged public benefits
• Operating Mill Levy - 10 Mills
• Maximum Debt Authorization - $31.5 million in project costs plus cost of issuance to cover a total of
$98,512,577 in estimated costs
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• Regional Mill Levy - 5 Mills, anticipated to be used to fund specific transportation and/or stormwater
improvements
Public Improvements
The Service Plan provides for the issuance of bonds in the maximum amount of $31.5 million in project costs
plus cost of issuance to fund a portion of the potential $98,512,577 in identified public improvements, as
specified by Exhibits H and I of the Service Plan. The following is a summary list of the potential public
improvements by development phase:
Phase I
• Non-Potable Water System - Approximately $3.1 million for a non-potable water system. This system will
be owned and operated by the Metro Districts.
• Sustainability Center - Approximately $1.5 million to finance and construct a sustainability center. This
facility will be owned and operated by the Metro Districts and will be available for use by the general public
in addition to district residents.
• Parks and Open Space Enhancements - Approximately $839,832 in parks and open space
enhancements, including landscaping, site furnishings (benches, public patio areas, open space arbors,
masonry, etc.). These improvements will be owned and maintained by the Metro Districts.
• Administrative, Design, Permitting and Contingency Costs - Approximately $4 million in costs
associated with administering, managing, surveying, engineering, inspecting, testing, planning, permitting
the construction of the public improvements, and contingency.
Phase II
• Affordable Housing: Approximately $3.4 million for Affordable housing. Waters’ Edge commits to
providing, in the second phase (Waters’ Edge East), that at least 10% of the housing units in that phase
will be affordable defined at 80% of area median income. There are 469 housing units proposed in Phase
II, so a total of 46 units will meet the City’s definition of Affordable Housing.
• Non-Potable Water System - Approximately $2.6 million for a non-potable water system in site
preparation costs and grading associated with the proposed project
• Rehabilitate Windsor No. 8 Ditch - Approximately $2 million to rehabilitate the Windsor No. 8 ditch, which
runs along the north half of the proposed second phase.
• Senior Activities Center - Approximately $7 million to finance and construct a sustainability center. This
facility will be owned and operated by the Metro Districts and will be available for use by the general public
in addition to district residents.
• Parks and Open Space Enhancements - Approximately $839,832 in parks and open space
enhancements, including landscaping, site furnishings (benches, public patio areas, open space arbors,
masonry, etc.). These improvements will be owned and maintained by the Metro Districts.
• Basic: Up to $3.4 million in “basic” public improvement costs. Note: For additional information, see the
below paragraph on Basic Infrastructure.
• Administrative, Design, Permitting and Contingency Costs - Approximately $6 million in costs
associated with administering, managing, surveying, engineering, inspecting, testing, planning, permitting
the construction of the public improvements, and contingency.
The public benefits listed within the Applicant’s Service Plan to be funded by the Metro Districts meet the
definition of non-basic public infrastructure that provide a public benefit consistent with the City’s recently
adopted metro district policy (the “Metro District Policy”) objectives.
Basic Infrastructure
The Metro District Policy has a bias against using metro districts to provide “basic infrastructure”, which
infrastructure is typically expected to be provided by a developer (both in type and magnitude), except where
Agenda Item 18
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the inclusion of “basic” infrastructure may be utilized to offset the higher costs of extraordinary development
outcomes that typically cannot be provided by a metro district (e.g., affordable housing, rooftop solar, etc.).
The Developer has requested that the Metro Districts be permitted to finance $3.4 million in basic infrastructure
costs to offset the costs with providing 10% of the units in Phase II (Waters’ Edge East) as Affordable as
defined by the City’s definition of Affordable Housing. There are 471 housing units proposed in Phase II, so a
total of 47 units will meet the City’s definition of Affordable Housing.
The “extraordinary development outcomes” are listed in Exhibit A of the Metro District Policy and include
Affordable Housing, which is defined as units permanently affordable to 80% of area median income.
Public Benefits
The Metro District Policy requires an interdisciplinary review of the public benefits that will be enabled by the
Metro Districts. The following is a list of the public benefits as specified in the Service Plan (additional
information can be found in Exhibit K of the Service Plan):
• Affordable Housing: Waters’ Edge commits to providing, in the Waters’ Edge East phase, that at least
10% of the housing units in that phase will be affordable defined at 80% of area median income. Some
units may meet this standard in Waters’ Edge first phase, including auxiliary dwelling units planned in our
courtyard product.
• Significant Reduction of Potable Water - The inclusion of a non-potable water system will significantly
reduce the need for treated water. The Developer estimates the long-term annual reduction in potable
water needs to be approximately 60% less. The Developer estimates this system to result in significant
financial benefits of around $151K in annual operating cost savings. Additionally, there are unquantified
environmental benefits due to a reduction in water treatment, primarily in electricity usage.
• Enhanced and Expanded Open Space, Parks, and Trails - The development includes enhanced and
expanded open spaces and trails. The Developer represents that there is twice the open space of a
typical development. The Developer proposes that this is a benefit to the walkability and pedestrian
friendliness of the Project, in addition to meeting the intent of nature and outdoors accessibility (i.e.,
Nature in the City).
• Rehabilitation of the Windsor No. 8 Ditch - As per the Service Plan, the Windsor No. 8 ditch will be
significantly rehabilitated in order to improve water quality, provide habitat for wildlife, act as regional trail
connection, and transform an eyesore into an attractive community amenity.
Policy Comparison
A comparison of the proposed Service Plan and the Metro District Policy is provided below in Table 1.
Table 1
Metro District Policy Comparison
Waters’ Edge Metro District Metro District Policy
Mill Levy Caps 50 Mills 50 Mills
Basic
Infrastructure
Partially ($3.4M) To enable public benefit
Eminent Domain Will Comply Prohibited
Debt Limitation Will Comply 100% of Capacity
Dissolution Limit Ongoing for O&M 40 years (end user refunding
exception)
Citizen Control Will Comply As early as possible
Multiple Districts Yes (5) Projected over an extended period
Commercial/Reside
ntial Ratio
Predominately Residential (70,000 SF Commercial) N/A
Agenda Item 18
Item # 18 Page 4
Service Plan Review
The applicant has used the City’s Model Service Plan as a basis for drafting its Service Plan. The following
changes have been requested by the applicant:
▪ Financial Plan Alternatives – The applicant has added language to Section IX.A indicating that the
attached financial plan is not the only method of implementation of the District’s goals and objectives
and that other financial structures may be used that must and will comply with the Service Plan.
▪ Operating Mill Levy – The applicant has proposed modifying the language of IX.B.3 related to
operating mill levy to allow for the District Board, when composed of a majority of End Users, to
exceed the ten (10) mill cap indicated in the Model Service Plan, while still complying with the
Aggregate Mill Levy Maximum.
▪ Refunded Debt and Maximum Debt Authorization – The applicant has proposed changes to the
language of the Model Service Plan in Section IX.B.7 indicated that “bonds, loans, notes or other
instruments which have been refunded shall not count against the Maximum Debt Authorization
All other changes in the proposed Service Plan are either refinements in the spirit of the Model Service Plan,
minor in nature, further changes to clarify Plan language, or responsive to Council’s requests for clarification
on August 21, 2018. A redline version of the Model Service Plan is attached to provide clarity on any changes
to the Model Service Plan. (Attachment 4)
Performance Assurances
The proposed Service Plan prohibits the issuance of any debt or imposition of the Debt Mill Levy or fees to pay
debt unless and until the delivery of the Public Benefits is secured in a manner that is approved by the City
Manager. This requirement can be satisfied by one or both of the following methods, as applicable:
• Intergovernmental Agreement - For those Public Benefits to be provided by one or more of the Districts,
each such District must enter into an intergovernmental agreement with the City agreeing to provide such
Public Benefits as a legally enforceable multiple-fiscal year obligation of the District under TABOR before
the City is required to issue building permits and/or certificates of occupancy for structures to be built under
an applicable approved development plan for the project, or by securing performance of that obligation
with a surety bond, letter of credit or other security acceptable to the City Manager; and
• Approved Development Plan - For those Public Benefits to be provided by one or more Developers of
the Project within a District’s boundaries, each such Developer must 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 certificates of occupancy for structures to be built under the approved development plan for the Project
or to secure such obligations with a surety bond, letter of credit or other security acceptable to the City
Manager.
Financial Assessment:
All metro district proposals are required to submit a Financial Plan to the City for review. (Attachment 2)
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 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. The following summarizes the
Financial Assessment, provided by Economic & Planning Systems, Inc. of the Metro Districts’ Service Plan
(The Applicant has revised the Service Plan since the review by EPS to more closely align with the
Metro District Policy and the conclusions with the EPS report):
Agenda Item 18
Item # 18 Page 5
• The proposed maximum District Mill Levy of 50 mills is relatively common and within the distribution of
similar metro districts for master planned communities in the Colorado Front Range. The 50 mills would be
added to the existing property tax levy of 90.828 mills and increase the property tax burden by 55 percent.
Metro District Mill Levies
• At 848 units, Water’s Edge would be one of the larger residential development projects in Fort Collins over
the last 10 years. Further, the proposed buildout of residential units for Water’s Edge is aggressive,
especially given the fact that the development is priced at the upper end of the Fort Collins market and
targeting households over 55 years of age. To meet such a build out schedule, the Project will either have
to lower its price points, market to a wider age distribution, and/or attract a greater number of retiree
households outside of Larimer County.
• As a luxury development, some buyers will be willing to pay the extra mill levies for the Project amenities.
However, it needs to be recognized that at the estimated pricing, plus the Metro Districts’ costs, this will be
one of the more expensive developments in northern Colorado.
• The Service Plan does not guarantee the delivery of public benefits. Public benefits will have to be vetted
and guaranteed through additional approval steps for the Project, including approval of the Development
Plan (and/or an amended Development Plan for Phase I), and/or through intergovernmental agreements
between the Metro Districts and the City.
Sustainability Assessment
To comprehensively and consistently evaluate District proposals, an interdisciplinary staff team from Planning,
Economic Health, Sustainability, and other Departments was formed to evaluate the impact of the Metro
Districts using the City’s Triple Bottom Line Scan (TBL-S) evaluation approach. For the proposed Project, the
TBLs focused on the impact of the difference in residential units delivered in the community by supporting the
proposed Metro Districts. This baseline was used as opposed to vacant or agricultural land because the
property already has an underlying residential plat and zoning. Therefore, the future use of the property will not
be vacant or agricultural but residential. Therefore, comparing the project to the current state (agricultural land)
would be disingenuous to the anticipated future condition. (Attachment 4)
Agenda Item 18
Item # 18 Page 6
Follow Up from Council Finance
• The city park that is included on the site plan as part of Phase I was purchased by Fort Collins Parks
several years ago when Waters’ Edge went through the review process the first time around. Parks has
been operating and maintaining it since then, but it’s not fully implemented, just a small playground and
shelter. Parks will be upgrading the park to be a more complete park. No funds of the Metro Districts will
be utilized to construct or maintain the park.
• The Development Agreement for Phase I includes the following language: “All the multi-family and single
family attached dwelling units, as shown on the Final development Plan, are intended to be and shall at all
times be operated as “housing for older person” in accordance with the federal Housing for Older Persons
Act of 1995, the fair Housing Act, and all applicable federal regulations as each of the aforementioned may
be amended or suspended in the future. This includes 130 of the 379 total dwelling units in Phase I.
• The Non-potable water system’s annual pumping costs are estimated at $25,100, as compared to
$176,700 for potable water costs, based on current ELCO rates.
CITY FINANCIAL IMPACTS
The proposed Service Plan for the Metro Districts will not have an impact on the City’s financials. The applicant
for the Service Plan has paid the fees required in the City’s previous metro district policy, which are designed
to offset the cost of staff and outside consultant review. In addition, the proposed Service Plan requires the
following notice to be included in all debt issued by the Metro Districts:
“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”.
ATTACHMENTS
1. Location Map (PDF)
2. Economic & Planning Systems Financial Assessment (PDF)
3. Triple Bottom Line Scan (PDF)
4. Water's Edge Consolidated Service Plan (redline, showing changes) (PDF)
5. PowerPoint Presentation (PDF)
VINE
9
COLLEGE
DOUGLAS
PROSPECT
TIMBERLINE
LEMAY
RIVERSIDE
MULBERRY
TURNBERRY
WILLOX
COUNTRY CLUB
TERRY LAKE
RICHARDS LAKE
MASON
MOUNTAIN VISTA
GREGORY
LINCOLN
GIDDINGS
SUMMIT VIEW
9TH
287
REMINGTON
JEFFERSON
SUNIGA
REMINGTON
TURNBERRY
LINCOLN
LEMAY
STUART
PITKIN
STOVER
ELIZABETH
CONIFER
THOREAU
LINDEN
13
LINK
MIDPOINT
BAR HARBOR
ABBOTSFORD
INTERNATIONAL
WELCH
GREENFIELDS
RIVERSIDE
LITTLE JOHN
PITKIN
I
Waters Edge Streets
Location Waters' Edge Map ATTACHMENT 1
M EMORANDUM
To: Josh Birks and Patrick Rowe
Economic Health & Redevelopment, City of Fort Collins
From: Dan Guimond and Elliot Kilham
Economic & Planning Systems
Subject: Water’s Edge Metro District Market and Financial Review
EPS #183080
Date: August 17, 2018
This memorandum summarizes Economic & Planning System’s (EPS)
review of the Consolidated Service Plan (Service Plan) for the Water’s
Edge Metropolitan Service District (District). The City is required to
approve the Service Plan for a Title 32 Metropolitan District (metro
district) prior to being submitted for a vote by the electorate of the
district. As requested by the City, EPS has evaluated the market and
financial assumptions underlying the application as well as the general
feasibility of the District’s financial plan, including proposed mill levies
and revenue forecasts. The evaluation also reviews the proposal against
City metro district policy considerations as well as the proposed public
benefits of the project.
Development Program
As outlined in the Service Plan, Water’s Edge is a planned 235 acre
development located at Trunberry Road and Richard’s Lake Road in the
northern part of the city, as shown in Figure 1. The proposed
development program includes 848 units of for-sale housing, targeting
but not exclusive to, active adults 55 years and older. The design of the
development and the housing products included are intended to help
residents better age-in-place. The project also includes 70,000 square
feet of commercial space as well as open space, parks, and community
centers. Construction is scheduled to take place in two phases, starting
in 2019 and finishing in 2027.
ATTACHMENT 2
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 2
The Developer of the project provided a detailed development program to D.A. Davidson, the
District’s bond underwriter, as inputs to the preliminary Financial Plan. While the program is
subject to change, it does provide the basis for the estimates of bond proceeds and the draft
bond series offerings completed by D.A. Davidson and outlined in Exhibit F of the Service Plan.
The proposed development program includes eight different housing products with estimated
market values for each product, as shown in Table 1:
• 36 Estate Homes with a market value of $1,125,000
• 11 Custom Water Front Homes with a market value of $1,500,000
• 116 Courtyard Ranch Homes with a market value of $461,500
• 210 Standard Ranch Homes with a market value of $538,450
• 98 Standard Ranch 3 Car Homes with a market value of $605,000
• 82 Large Active Adult Patio Homes with a market value of $735,000
• 186 Townhomes with a market value of $396,000
• 109 Condominiums with a market value of $300,000
Table 1
Proposed Development Program
Dscription Market Value Value % Total
Residential Per Unit Units
Estate Homes $1,125,000 36 4%
Custom Water Front $1,500,000 11 1%
Courtyard Ranch $461,500 116 14%
Standard Ranch $538,450 210 25%
Standard Ranch - 3 Car $605,000 98 12%
Large Active Adult Patio $735,000 82 10%
Townhome $396,000 186 22%
Condominium $300,000 109 13%
Total* $530,100 848 100%
Per Sq. Ft. Sq. Ft.
Commercial $250 70,000
*Market value total shows the w eighted average of product market values
Source: DA Davidson; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 3
Figure 1
Proposed Water’s Edge Metro District
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 4
Metro District Proposal
Summary
The Service Plan proposes five separate metro districts; four financing districts and one
management district. Each financing district will have the ability to impose an Aggregate Mill
Levy of up to 50 mills, which includes a Debt Mill Levy and an Operating Mill Levy. The Operating
Mill Levy can equal up to 50 mills until the District imposes a Debt Mill Levy, at which point in
time the Operating Mill Levy cannot exceed 10 mills. While District levies are capped at 50 mills,
the Service Plan allows for adjustments to the mill levies in the event that there are changes to
the method of calculating assessed value or any other changes impacting the revenue generating
capabilities of the District. In such cases, the District may increase or decrease mill levies to
ensure that actual tax revenues generated are not diminished. This ability helps to further
guarantee future revenue streams and reduces the risk for the bond holders. In addition to the
mill levies, the Service Plan allows the District to impose one-time facility fees, which are
modelled at $2,500 per single family detached units and $1,750 per single family attached units.
The Developer’s engineering consultant estimates the total cost of the public improvements at
approximately $98 million; the Developer anticipates issuing approximately $45 million in District
debt to help fund the cost of these public improvements.
Policy Review
The City is currently considering updating its policy originally adopted in 2008 for reviewing
proposed metro district service plans. The new policy removes previous limitations for a metro
district to be 90 percent commercial and not to be used to fund “basic infrastructure
improvements normally required from new development”. In their place, the policy requires that
developers deliver public benefits to the City. In addition, the new policy increases the
recommended “maximum mill levy” for both debt service and O&M to 50 mills—up from 40 mills
in the 2008 resolution. The proposed Water’s Edge maximum aggregate District Mill Levy of 50
mills is greater than the previous recommended mill levy maximum, but equal to the proposed
updated mill levy maximum.
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 5
Market Assessment
This section reviews market values and absorption assumptions used to estimate the potential
public financing revenues and bond capacity of the project, looking separately at residential
development and commercial development. Table 6 at the end of the section summarizes the
development program, market values, and buildout assumptions of the project.
Residential Development
Market Values
The Developer’s proposed market values range from the middle to the upper end of the Fort
Collins market. The Fort Collins Board of Realtors (FCBR) reports that the median price for a
single family home sold in Fort Collins in 2017 is $386,375, and the median price for a townhome/
condo is $271,000. All of the single family products proposed in the development have higher
price points than the Fort Collins median, as shown in Figure 2. The townhomes, priced at
$300,000, and condominiums, priced at $396,000, proposed in the development have price
points closer to the median of the Fort Collins market. The weighted average market value for
the development is $530,100, approximately 1.4 times the median price for a single family house.
However, the median home value reported by the FCBR includes new construction and existing
homes, resulting in a lower price than the Developer could expect for new construction alone.
Figure 2
Proposed Water’s Edge Market Values Compared to Median Prices in Fort Collin’s Market
$1,125,000
$1,500,000
$461,500
$538,450
$605,000
$735,000
$396,000
$300,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Estate Homes Custom Water
Front
Courtyard Ranch Standard Ranch Standard Ranch -
3 Car
Large Active
Adult Patio
Townhome Condominium
2017 $
Market Value Water's Edge Weighted Avg. Median Single Family Median Townhome/Condo
Source: DA Davidson; FCBR; Economic & Planning Systems
H:\143002-Fort Collins On Call Financial Services\Waters Edge Metro Dist\Data\[143002-Market Value Research.xlsx]T-
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 6
Comparing a distribution of housing prices in the proposed development program to the
distribution of sales prices for all housing products (single family, townhomes, and
condominiums) in the Fort Collins market in 2016 further emphasizes the fact the development
is targeting the upper end of the market, as shown in Figure 3. The townhomes and
condominiums, which represent 35 percent of the development, are priced at the middle of the
distribution of sales. The Courtyard Ranch and Standard Ranch are priced at the next two tiers,
between $400,000 and $700,000. Finally, the Large Active Patio homes, the Estate homes, and
Custom Water Front homes are priced at the upper end of the market.
There are comparable price points in the Fort Collins market for all of the housing products in
the proposed development, and the products—at least in terms of price—do not represent
outliers. However, pricing the products at the upper end of the market will limit the number of
households that can afford to move to the development, which may potentially have impacts on
absorption rates.
Figure 3
Distribution of Housing Prices Water’s Edge and Fort Collins Total
0%
5%
10%
15%
20%
25%
30%
35%
40%
$99,999 and
Below
$100,000 to
$199,999
$200,000 to
$299,999
$300,000 to
$399,999
$400,000 to
$499,999
$500,000 to
$699,999
$700,000 to
$999,999
$1,000,000 to
$1,999,999
$2,000,000
and Above
Percent Sales 2016 Fort Collins Sales Development Program
Source: FCBR; DA Davidson; Economic & Planning Systems
Townhome, Condos
Courtyard
Ranch
Standard Ranch
Large Active
Adult Patio
Estate, Custom
Water Front
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 7
North Fort Collins Projects
This section compares Water’s Edge to other for-sale residential projects in the North Fort Collins
market area, as shown in Table 2. The comparison reveals that Water’s Edge price points largely
overlap with the price ranges proposed in recent residential projects, as shown in Figure 4.
However, at 848 units, Water’s Edge would be one of the largest developments in the last 10
years in North Fort Collins. For example, East Ridge, one of the largest recent proposals, is
planned for 568 units, 280 units fewer than Water’s Edge. It may be difficult to absorb such a
large number of units at price points higher than the market average.
Table 2
For-Sale Residential Projects in the North Fort Collins Market
Figure 4
Price Range in Comparable Residential Projects and Proposed Water’s Edge
Project Status Project Start Product Units Price
Compable Projects
Single-Family $350,000-$650,000
Townhomes $300,000-$430,000
Condos $230,000-$450,000
Single-Family 18 $540,000-$570,000
Townhomes 37 $327,500-$360,000
Timbervine Under Construction 2017 Single-Family 146 $346,000-$390,000
East Ridge Approved --- Single-Family 568 $300,000-$400,000
Brownes on Howes Complete 2016 Townhomes 6 $850,000-$1,000,000
Townhomes at Library Park Under Construction 2017 Townhomes 10 $1,195,000-$1,500,000
Water's Edge
Single-Family 553 $461,500-$1,500,000
Townhomes 186 $396,000
Condos 109 $300,000
*Total housing units for all product types
Source: Zillow; FCBR; DA Davidson; Economic & Planning Systems
450-500*
Revive Under Construction 2015
Proposed Development Proposed 2018
Old Town North Third Phase 2007
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Old Town North Revive Timbervine East Ridge Brownes on Howes Townhomes at
Library Park
Water's Edge
Price Range
Source: Zillow; FCBR; Economic & Planning Systems
Water's Edge
Weighted Average
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 8
Absorption
The Developer estimates the buildout of Water’s Edge residential units over a nine-year period
from 2019 to 2027, an average of 94 units per year, as shown in Figure 5. A more detailed
buildout plan for each of the residential housing products is shown in Table 6, at the end of the
Market Assessment section.
EPS conducted two analyses to evaluate the proposed buildout and absorption schedule: the first
compares the historical residential building rates in Fort Collins and Larimer County to the
planned buildout of Water’s Edge; and the second compares an estimate of supply deficits for
age-qualified 55+ for-sale housing to the proposed development. In both analyses, EPS focuses
more narrowly on an age-qualified 55+ market segment, whereas Water’s Edge is targeted
toward and not necessarily limited to this age group.
While there is a market gap or a need for age-qualified housing in Fort Collins and Larimer
County, to meet the development schedule as modeled in the Financial Plan, the development
would need to capture close to or over 100 percent of the age-qualified market. More
realistically, the development will have to appeal to more market segments than just 55 to
achieve the absorption targets. However, designing a project to have specific appeal toward a
55+ age cohort and wider-appeal to other demographics may be a difficult balance for the
development to maintain.
Figure 5
Residential Build-Out of Water’s Edge
84
109 109 108
105 105 105
92
31
0
20
40
60
80
100
120
2019 2020 2021 2022 2023 2024 2025 2026 2027
Units
Total Average
Source: DA Davidson; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 9
Historical Residential Building Rates
EPS compared the proposed buildout with residential building permit data for Fort Collins and
Larimer County. From 2000 through 2015, Fort Collins averaged 1,051 residential units built per
year. Over that same time period, Larimer County (including Fort Collins) averaged 2,255
residential units per year. To estimate a potential demand for 55+ age-qualified housing, EPS
applied a typical percentage of units bought by baby-boomers, based on a national average.
Given the price points of the proposed housing products, EPS also narrowed the market to
households with incomes over $100,000. Based on these applied percentages, EPS estimates the
potential demand for age qualified 55+ housing to be 98 units per year in Fort Collins and 209
units per year in Larimer County, as shown in Table 3. Thus, to meet its proposed absorption
schedule, the development would need to capture 96 percent of the estimated demand in Fort
Collins and 45 percent of the estimated demand in Larimer County.
However, the analysis likely underestimates the potential demand for Water’s Edge.
• First, historical residential construction is an imperfect proxy for demand and likely biased
downward given available land and other constraints.
• Second, the analysis focuses more narrowly on baby-boomers or age-qualified, whereas
Water’s Edge is age-targeted.
With that in mind, the analysis highlights that to achieve its buildout assumptions the development
will have to pursue a combination of three market strategies: (1) capture almost 100 percent of
the Fort Collins age-qualified 55+ market, (2) increase Fort Collins capture rate of the Larimer
County market or attract buyers from outside the market seeking a retirement location, and/or
(3) attract a wider demographic segment than the 55+ target. While capturing 100 percent of
the Fort Collins market is likely not achievable given the varied preferences of consumers, the
other two market strategies do seem possible, but would require fairly aggressive and ultimately
successful marketing strategies. Further, it may be difficult to design a community that appeals
specifically to 55+ consumers, but also has wider appeal to other demographics and to Larimer
County as a whole.
Table 3
Water’s Edge Implied Percent Capture of Historical Construction Rates
Description
Avg.
Construction
Rate
% Sold to
Baby
Boomers [1]
% HHs > 45
with Incomes
>$100,000 [2]
Demand for
Age-Qualified
55+ Housing
Water's
Edge
%
Capture
Units/Yr Units/Yr Units/Yr
Fort Collins 1,051 32% 29% 98 94 96%
Larimer County 2,255 32% 29% 209 94 45%
[1] National average from a 2015 National Association of Realtors (NAR) report
[2] ACS 1 Year Estimate for Larimer County
Source: NAR; US Census; Census C40 Permits; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 10
Estimated Supply Gap for Age-Qualified Housing
A recent study by the Highland Group entitled Needs and Opportunities in Housing and Care in
Larimer County: Next 25 Years estimated the demand, supply, and corresponding gap for
different types of senior housing in Larimer County, including nursing homes, assisted living,
independent living, and for-sale age-qualified 55+ products (single family homes, townhomes,
condominiums, and mobile homes). For the for-sale age-qualified 55+ products, the study found
the supply in 2015 to be 1,359 units; the study does not estimate that there will be any new
product built by 2020. At the same time while supply is static, the study estimates that demand
will increase from 1,660 units in 2015 to 2,300 units in 2030. If no new supply is built, by 2030,
Larimer County will have a supply deficit of 941 units.
If Water’s Edge was age-qualified rather than age-targeted 55+, it would need to capture 90
percent of the estimated supply deficit of Larimer County in 2030 to meet its buildout
assumption from 2018 to 2026. For this assumption to be realistic, Water’s Edge would have to
face little competition, and the development would have to meet the preferences of almost all of
the potential buyers. Moreover, the estimated supply deficit is for all income levels. In contrast,
Water’s Edge will only be viable for households at the upper end of the income spectrum, making
such a high capture percentage even less likely. Thus, similar to the historical construction rate
analysis, the analysis underscores the need for the development to capture larger segments of
the market than just 55+.
Table 4
Water’s Edge Implied Percent Capture of Estimated Supply Deficit for Age-Qualified 55+ For-Sale
Housing
Description Supply Demand
Supply
Deficit
Water's
Edge % Capture
2015 2030 2030
Market Estimate 1,359 2,300 941 848 90%
Source: The Highland Group; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 11
Commercial Development
Market Values
For its public revenue estimates, the Water’s Edge Financial Plan assumed that the retail space in
the development will have a market value of $250 per square foot. To benchmark this
assumption, EPS compared it to the historical five-year average sales price per square foot of
retail space in the Fort Collins market and to the capitalized value of retail space. Capitalized
value was calculated by dividing the five-year average retail rent per square foot by the five-year
average capitalization rate in the Fort Collins market. The Water’s Edge assumption is 14 percent
greater than the average sales price, which was $214 per square foot, and 4 percent greater
than the capitalized value, which was approximately $241 per square foot, as shown in Table 5.
Given the fact that newer retail space will likely trade at a premium, EPS finds the market value
assumption to be appropriate.
Table 5
Retail Market Value Comparison
Retail Demand
The Developer proposes that the 70,000 square feet of commercial development take place from
2023 to 2027, with 20,000 square feet built in 2023 and again in 2025, and 30,000 square feet
built in 2027, as shown in Figure 6 and Table 6.
The level of commercial development proposed essentially represents a grocery store anchored
community retail center, with a variety of full and limited service restaurants, bars and
breweries, and other ancillary retail surrounding the anchor. The North Fort Collins market is a
significant growth area of the city and will likely be able to support a neighborhood or community
retail project in the near future. However, in the Financial Plan, the Developer proposes to build
retail space in smaller increments and simultaneous with the residential portion of the
development. More realistically, this retail development would not occur until the trade area has
reached certain household thresholds that would be supportive of an anchor grocery store. This
grocery store would then spur ancillary retail space in the development.
In addition, Water’s Edge will likely face competition for this retail demand. Specifically, the
significantly larger proposed Montava project is planning to build a community retail center that
would directly compete with Water’s Edge for support from the North Fort Collins trade area. This
project is planned at a more central location on Mountain Vista Drive. In the short to medium
term, there likely isn’t enough retail demand to support more than one community center.
Sales Price Capitalized Water's Edge
Description Per Sq. Ft. [1] Value [2] Assumption
Market Value ($/Sq. Ft.) $214.00 $240.73 $250.00
% Difference [2] 14% 4% 0%
[1] 5-year average sales price per sq. ft.
[3] Percent difference from the market value assumption.
Source: CoStar; Economic & Planning Systems
[2] Capitalized value equals the 5-year average rent divided by the 5-year average capitalization rate or
$15.89 / 6.60%.
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 12
Figure 6
Commercial Buildout of Water’s Edge
Table 6
Water’s Edge Development Program and Build-Out
0 0 0 0
20,000
0
20,000
0
30,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2019 2020 2021 2022 2023 2024 2025 2026 2027
Sq. Ft.
Source: DA Davidson; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 13
Financial Analysis
The Service Plan proposes to use the stream of revenues raised from mill levies to issue debt in
the form of bonds. These bond proceeds will be used to reimburse the Developer for public
improvement costs. This section reviews proposed public improvement costs and the revenue
and debt estimates described in the Metro District Service Plan.
Public Improvement Costs
The Developer estimates public improvement costs will be approximately $98.5 million, as shown
in Table 7. This total cost is divided between two phases and between non-basic (off-site)
infrastructure, representing more regional improvements, and basic (in tract) infrastructure,
representing infrastructure that would normally be associated with development projects and
horizontal construction. The non-basic infrastructure is estimated to be $32 million or
approximately 33 percent of total infrastructure costs. The basic infrastructure is estimated to be
$66 million or 67 percent of total infrastructure costs.
Table 7
Public Infrastructure and Estimated Costs
Phase I Phase II Total
Description Amount % Total Amount % Total Amount % Total
Non-Basic
Non-potable Water System $3,105,500 8% $2,611,000 4% $5,716,500 6%
Open Space, Parks and Recreation $5,839,832 16% $10,521,000 17% $16,360,832 17%
Design, Engineering, etc. $1,610,160 4% $2,363,760 4% $3,973,920 4%
Contruction Management $304,141 1% $446,488 1% $750,629 1%
Contingency $2,171,927 6% $3,188,450 5% $5,360,377 5%
Subtotal $13,031,560 35% $19,130,698 31% $32,162,258 33%
Basic
Allocation (50%) of Overlot Grading $752,500 2% $1,693,000 3% $2,445,500 2%
Sitework $2,207,853 6% $3,234,000 5% $5,441,853 6%
Sanitary Sewer $1,919,069 5% $3,565,000 6% $5,484,069 6%
Storm Drain $1,379,202 4% $2,849,000 5% $4,228,202 4%
Waterline $2,013,401 5% $3,431,000 6% $5,444,401 6%
Retaining Wall $1,033,982 3% $2,326,000 4% $3,359,982 3%
Utility Sleeving $137,500 0% $287,000 0% $424,500 0%
Concreate Flatwork $2,550,105 7% $4,412,000 7% $6,962,105 7%
Base Course and Paving $3,191,956 9% $5,393,000 9% $8,584,956 9%
Traffic Control $148,250 0% $247,000 0% $395,250 0%
Open Space, Parks and Recreation $1,281,432 3% $1,493,000 2% $2,774,432 3%
Design, Engineering, etc. $2,990,745 8% $5,207,400 8% $8,198,145 8%
Contruction Management $564,918 2% $983,620 2% $1,548,538 2%
Contingency $4,034,183 11% $7,024,204 11% $11,058,387 11%
Subtotal $24,205,096 65% $42,145,224 69% $66,350,320 67%
TOTAL $37,236,656 100% $61,275,922 100% $98,512,578 100%
Source: Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 14
Revenue Estimates
Proposed Mill Levies and Facility Fee
The proposed maximum District Mill Levy of 50 mills is relatively common and within the
distribution of similar metro districts for master planned communities in the Colorado Front
Range. The 50 mills would be added to the existing property tax levy of 90.828 mills and
increase the property tax burden by 55 percent. For the residential portion of the property, the
maximum District Mill Levy would result in an average of $1,908 per year or $160 per month of
additional cost to the tenant. For the commercial portion of the property, the maximum District
Mill levy would result in an average of $3.63 per square feet of additional property tax cost per
year, as shown in Table 8.
Table 8
Metro District Mill Levies
Public Revenue Forecasts
D.A. Davidson, the District’s financial advisor, estimates that the Metro District will generate a
total of $107.5 million in revenues from Debt Mill Levy collections, Special Ownership Taxes, and
Facility Fees, as shown in Table 9. The market value and absorption assumptions described
above are the main drivers of these revenue estimates along with assumptions about price
appreciation.
As will be described in more detail in the next section, these public revenues will be used to
generate approximately $43.6 million in project funds that can then be used to reimburse the
Developer for infrastructure expenditures related to the public improvements.
Market Assessed Property Tax
Description Value Value Existing District Total
90.828 mills 50.000 mills 140.828 mills
Residential (Units) 7.20%
Estate Homes $1,125,000 $81,000 $7,357 $4,050 $11,407
Custom Water Front $1,500,000 $108,000 $9,809 $5,400 $15,209
Courtyard Ranch $461,500 $33,228 $3,018 $1,661 $4,679
Standard Ranch $538,450 $38,768 $3,521 $1,938 $5,460
Standard Ranch - 3 Car $605,000 $43,560 $3,956 $2,178 $6,134
Large Active Adult Patio $735,000 $52,920 $4,807 $2,646 $7,453
Townhome $396,000 $28,512 $2,590 $1,426 $4,015
Condominium $300,000 $21,600 $1,962 $1,080 $3,042
Weighted Average $530,100 $38,167 $3,467 $1,908 $5,375
% Total 64% 36% 100%
Commercial ($/SF) 29.00%
Retail $250 $73 $6.59 $3.63 $10.21
% Total 64% 36% 100%
Source: DA Davidson; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 15
Table 9
Waterfield Metro District Revenue Forecasts
Bond Proceeds
D.A. Davidson estimated the potential public finance revenues and bond capacity for Water’s
Edge, which are reported in the Financial Plan of the Service Plan. In the Financial Plan, D.A.
Davidson proposes to sell two series of bonds, as shown in Table 10. The first series will be
issued in 2019 and generate approximately $24.4 million in project funds. The second series will
be issued in 2029 and will be used to pay-off the outstanding debt service in the Series 2020
issuance, and then generate an additional $19.2 million in project funds. Together, D.A.
Davidson estimates that the issuances will generate $43.6 million in project funds—slightly less
than the Developer proposed maximum debt issuance of $45 million.
A reduction in the proposed market values for the residential and commercial development would
reduce the total bond proceeds. An extended buildout and absorption period would also reduce
the value of the total bond proceeds. The underwriting process and bond structure includes
reserve funds and capitalized interest to help mitigate differences between forecasted and actual
values relating to market values, buildout schedule, and other variables.
Table 10
Estimated Bond Proceeds
Description Amount % Total
Debt Mill Levy Collections [1] $98,931,551 92%
S.O. Taxes Collected $5,935,893 6%
Facililty Fee $2,636,250 2%
Total Revenue $107,503,694 100%
[1] Assumes a collection rate of 98 percent.
Source: DA Davidson; Economic & Planning Systems
Description Series 2019 Series 2029 Total
Bond Proceeds $33,535,000 $50,330,000 $83,865,000
Other Funds [1] -$8,114,990 $3,329,740 -$4,785,250
Refunding Deposits [2] $0 -$34,004,375 -$34,004,375
Cost of Issuance -$300,000 -$200,000 -$500,000
Underwriter's Discount -$670,700 -$251,650 -$922,350
Project Funds $24,449,310 $19,203,715 $43,653,025
[1] Debt reserves and other funds available.
[2] Refinancing previous bond series.
Source: DA Davidson; Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 16
Public Benefits
The City’s proposed policy for reviewing metro districts supports the formation of a district
“where it will deliver extraordinary public benefits that align with the goals and objectives of the
City”. The proposed policy goes on to define four focus areas or types of benefits that meet this
policy as follows:
• Environmental Sustainability Outcomes – defined as public improvements that provide
environmental benefits including reduction in greenhouse gases, water or energy
conservation, community resiliency against natural disasters, renewable energy capacity,
and/or other environmental outcomes.
• Critical Public Infrastructure – public improvements that address significant infrastructure
needs previously identified by the City.
• Smart Growth Management – public improvements that facilitate design that increases
development density, enhances walkability, increases the availability of transit or multimodal
facilities, and/or encourages mixed use development patterns.
• Strategic Priorities – public improvements that address City priorities including affordable
housing, infill or redevelopment, and economic health improvements (e.g., job growth
business retention, or construction of a missing economic resource).
The Developer has identified and estimated the value of a number of public benefits provided by
the District, as shown in Table 11. These include the non-basic infrastructure initially described
in the Public Improvement Costs section of this memo. The Developer also identified so-called
“indirect costs” associated with housing product geared toward seniors. These include step-less
entries, wider lots for single-level, senior-friendly housing design, and single level building costs.
In total, the Developer estimates these public benefits to have a cost of $73.7 million. In
addition, the Developer notes that housing that enables residents to age in place and delay going
to independent or assisted living communities also saves households money.
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 17
EPS reviewed the Non-Basic and Indirect Costs identified by the Developer as public benefits as
shown in Table 11.
Table 11
Water’s Edge Public Benefits
EPS has assumed the non-basic public infrastructure costs as meeting the criteria for extraordinary
public benefits as defined in the draft metro district policy. In our opinion, the landscaping costs
should be considered basic rather than non-basic infrastructure. Based on an initial round of
edits, the Developer had reduced the estimated non-basic landscaping budget by half.
EPS believes the Indirect Costs should not be categorized as extraordinary. The extra-costs and
extra-benefits from the senior housing generally are paid for and accrue to the home-buyers and
not to the public at-large. This may be different if the Developer indicated that District fund were
being used to make housing more affordable in Water’s Edge. Affordable housing is one of the
City’s strategic initiatives. However, the Developer has not indicated this, and, moreover, the
proposed home prices are at the higher range of the Fort Collins market.
Developer EPS
Description Amount % Total Amount % Total
Non-Basic Infrastructure
Non-potable Water System $5,716,500 8% $5,716,500 18%
Open Space, Parks and Recreation
Artisan Workshop/Inventors Center $3,500,000 5% $3,500,000 11%
Sustainability Center $1,500,000 2% $1,500,000 5%
Senior Activities Center $7,000,000 10% $7,000,000 22%
Rehabilitation of Windsor No. 8 Ditch $2,000,000 3% $2,000,000 6%
Landscaping [1] $2,360,831 3% $2,360,831 8%
Subtotal $16,360,832 22% $16,360,832 52%
Soft Costs
Design, Engineering, etc. $3,973,920 5% $3,973,920 13%
Contruction Management $750,629 1% $750,629 2%
Contingency $5,360,377 7% $4,415,466 14%
Subtotal $10,084,926 14% $9,140,015 29%
Subtotal: Non-Basic $32,162,258 44% $31,217,347 100%
Indirect Costs
Stepless Entries Accommodate Senior Access $2,056,500 3% 0 0%
Wider Lots to Accommodate Single-Level Housing $10,780,585 15% 0 0%
Single-Level Additional Building Costs $28,682,438 39% 0 0%
Subtotal: Indirect $41,519,523 56% $0 0%
TOTAL $73,681,781 100% $31,217,347 100%
Source: Economic & Planning Systems
Memorandum August 17, 2018
Water’s Edge Metro District Review Page 18
In total, EPS estimates that the cost of the extraordinary public benefits are approximately $31.1
million as currently described by the Developer. These benefits are less than the estimated bond
proceeds of $43.7 million proposed in the Service Plan.
Summary of Conclusions
• The proposed maximum aggregate mill levy of 50 mills exceeds the maximum mill levy of 40
mills in the current metro district policy but is equal to the proposed maximum mill levy of 50
mills in the proposed new policy.
• At 848 units, Water’s Edge would be one of the larger residential development projects in
Fort Collins over the last 10 years. Further, the proposed buildout of residential units for
Water’s Edge is aggressive, especially given the fact that the development is priced at the
upper end of the Fort Collins market and targeting households over 55 years of age. To
meet such a build out schedule, the project will either have to lower its price points, market
to a wider age distribution, and/or attract a greater number of retiree households outside of
Larimer County.
• As a luxury development, some buyers will be willing to pay the extra mill levies for the project
amenities. However, it needs to be recognized that at the estimated pricing, plus the metro
district costs, this will be one of the more expensive developments in northern Colorado.
• A longer-term buildout will affect the timing of when revenues will be available to service
debt and could, at an extreme, risk default of bond payments. Bond instruments, however,
mitigate such a risk through capitalized interest payments, debt service coverage ratios, and
reserve funds.
• North Fort Collins is one of the only remaining growth areas of the city. The market should be
able to support retail development at least equal to a grocery store anchored community
center. While the planned retail development of 70,000 square feet is not unreasonable given
the potential size of the overall trade area, Water’s Edge will likely face competition for this
retail demand. Specifically, the proposed Montava development is planning to build a
community retail center that would compete with Water’s Edge and is more optimally located
to serve the larger North Fort Collins trade area. In the short to medium term, there likely
isn’t enough retail demand to support more than one community retail center.
• The Developer has identified a total of $73.7 million in public benefits within the project. Of
these public benefits identified, EPS estimates that approximately $31.1 million meet the
definition of extraordinary public benefits as outlined in the City’s proposed metro district
policy. This amount corresponds with the non-basic infrastructure estimate provided by the
Developer.
• These eligible extraordinary benefits are substantially less than the estimated $43.7 million
of bond proceeds available to the Developer to pay for infrastructure costs.
• The Service Plan does not guarantee the delivery of public benefits. Public benefits will have
to be vetted and guaranteed through additional approval steps for the metro district,
including approval of the development plan.
Waters’ Edge Metro District Proposal
Proposal for a multi-district metro district for the Waters’ Edge development (Phase I and II). The
purpose of the metro district is to finance, construct, operate and maintain a number of public
improvements for the benefit of the residents and the community at large.
The proposal is focused around basic improvements that enable the senior-friendly housing type and
community design, a non-potable water system, the restoration of the Windsor #9 ditch, enhanced open
spaces and trails, a number of community facilities, and other public improvements.
Positive
• Rehabilitation of the Windsor #8
ditch, creating wetlands, improving
water quality and providing habitat
for wildlife.
• Non-potable, district-controlled
water system resulting in 55%
reduction in treated water saving on
energy from water treatment and
reducing water usage through
district run watering practices.
• Sustainability center and
community gardens, as we
understand the proposal, will result
in educational and community
engagement opportunities around
community gardening and
sustainability.
Negative
• None identified (development
facilitated by metro district
compared to standard
development).
Positive
• Funding for regional improvements
– Vine/Lemay and Turnberry [Ask
Tom].
•
Negative
• None identified.
Positive
• Expanded trails, distributed
community gardens, and enhanced
parks and open spaces will
encourage walking, socialization,
and health outcomes.
• Increased social interactions at
senior oriented community facilities –
Senior Activities Center, Artisan
Workshop and Inventors Center, and
a Sustainability Center.
• Improved sense of belonging for
demographic 55+ population due to
senior-friendly community design.
Negative
• None identified.
Tradeoffs
• X
• X
Mitigations
• X
• X
Key Alignment:
xxxx
insert visualization image here
X
X
X
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City of Fort Collins
Title 32 Metropolitan District Model Service Plan
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ATTACHMENT 4
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CONSOLIDATED SERVICE PLAN
FOR
WATERS’ EDGE METROPOLITAN DISTRICT NOS. 1-5
CITY OF FORT COLLINS, COLORADO
Prepared by:
White Bear Ankele Tanaka & Waldron, Professional Corporation
748 Whalers Way, Suite 210
Fort Collins, Colorado 80525
Submitted On: August 29, 2018
Approved On: September 4, 2018
i
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 ..................................................................................................................... Intent1
Need for District .................................................................................................................... Districts
......................................................................................................................................................1
Objective of the City regarding District’sDistricts’ Service Plan ............................................... Plan2
Relevant Intergovernmental Agreements………………………………………………………………………………………………
DEFINITIONS ...............................................................................................................................2
BOUNDARIES AND LOCATION .......................................................................... LOCATION
..........................................................................................................................................................6
DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC
BENEFITBENEFITS & ASSESSED VALUATION .......................................... VALUATION
..........................................................................................................................................................6
Project and Planned Development ................................................................................ Development6
Public Benefits ....................................................................................................................... Benefits
......................................................................................................................................................7
Assessed Valuation ............................................................................................................... Valuation
......................................................................................................................................................8
INCLUSION OF LAND IN THE SERVICE AREA ........................................................ AREA
..........................................................................................................................................................8
DISTRICT GOVERNANCE ............................................................................. GOVERNANCE
..........................................................................................................................................................8
AUTHORIZED AND PROHIBITED POWERS ........................................................ POWERS
..........................................................................................................................................................8
General Grant of Powers………………………………………………………………………………………………………………………..
Eminent Domain Restriction ...................................................................................................
..........................................................................................................................................................9
Fee Limitation ..........................................................................................................................
..........................................................................................................................................................9
Operations and Maintenance ...................................................................................................
..........................................................................................................................................................9
Fire Protection Restriction .......................................................................................................
........................................................................................................................................................10
Public Safety Services Restriction ..........................................................................................
........................................................................................................................................................10
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Grants from Governmental Agencies Restriction .................................................................. 10
Golf Course Construction Restriction ...................................................................... Restriction
........................................................................................................................................................10
Television Relay and Translation Restriction ........................................................................
........................................................................................................................................................10
Potable Water and Wastewater Treatment
Facilities…………………………………………………………………… .....................................................................11
Sales and Use Tax Exemption Limitation ..............................................................................
........................................................................................................................................................11
Sub-district Restriction ............................................................................................................
........................................................................................................................................................11
Initial Debt Limitation .............................................................................................................
........................................................................................................................................................11
Privately Placed Debt Limitation ............................................................................................
........................................................................................................................................................11
Special Assessments……………………………………………………………………………………………………………………..
PUBLIC IMPROVEMENTS AND ESTIMATED COSTS ........................................... COSTS
........................................................................................................................................................11
Development Standards ....................................................................................................... Standards12
Contracting ............................................................................................................................................
Land Acquisition and Conveyance ................................................................................. Conveyance13
Equal Employment and Discrimination ...............................................................................................
FINANCIAL PLAN/PROPOSED DEBT ........................................................................... DEBT
........................................................................................................................................................13
Financial Plan................................................................................................................................ Plan
....................................................................................................................................................13
Mill Levies ................................................................................................................................. Levies
....................................................................................................................................................14
Aggregate Mill Levy Maximum .............................................................................................
........................................................................................................................................................14
Regional Mill Levy Not Included in Other Mill Levies ........................................................
........................................................................................................................................................14
Operating Mill Levy ................................................................................................................
........................................................................................................................................................14
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Assessed Value and Mill Levies ....................................................................................................
Excessive Mill Levy Pledges ....................................................................................................
........................................................................................................................................................14
Refunding Debt ........................................................................................................................
........................................................................................................................................................15
Maximum Debt Authorization .................................................................................................
........................................................................................................................................................15
Maximum Voted Interest Rate and Underwriting Discount ............................................... Discount
....................................................................................................................................................16
Interest Rate and Underwriting Discount Certification ................................................. Certification
....................................................................................................................................................16
Disclosure to Purchasers .................................................................................................... Purchasers
....................................................................................................................................................16
External Financial Advisor ..................................................................................................... Advisor
....................................................................................................................................................16
Disclosure to Debt Purchasers........................................................................................... Purchasers
....................................................................................................................................................16
Security for Debt ......................................................................................................................... Debt
....................................................................................................................................................17
TABOR Compliance ........................................................................................................ Compliance
....................................................................................................................................................17
District’sDistricts’ Operating Costs ............................................................................................. Costs
....................................................................................................................................................17
Regional Improvements.......................................................................................... Improvements
........................................................................................................................................................17
Regional Mill Levy Authority ....................................................................................................17
Regional Mill Levy Authority ........................................................................................... Imposition
....................................................................................................................................................18
Regional Mill Levy Imposition ................................................................................................................
City Notice Regarding Regional Improvements ........................................................ Improvements
....................................................................................................................................................18
Regional Improvements Authorized Under Service Plan .......................................................... Plan
....................................................................................................................................................18
Expenditure of Regional Mill Levy Revenues ................................................................... Revenues
....................................................................................................................................................18
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Intergovernmental Agreement ................................................................................................. 18
No Intergovernmental Agreement ..........................................................................................
........................................................................................................................................................18
Regional Mill Levy Term ........................................................................................................... Term
....................................................................................................................................................18
Completion of Regional Improvements ...................................................................... Improvements
....................................................................................................................................................19
City Authority to Require Imposition ............................................................................... Imposition
....................................................................................................................................................19
Regional Mill Levy Not Included in Other Mill Levies ....................................................................
Gallagher Adjustment ....................................................................................................... Adjustment
....................................................................................................................................................19
City Fees .................................................................................................................................... Fees
........................................................................................................................................................19
Bankruptcy Limitations .............................................................................................. Limitations
........................................................................................................................................................19
Annual Reports and Board Meetings ............................................................................. Meetings
........................................................................................................................................................19
General..................................................................................................................................................
General .......................................................................................................................................19
Board
Meetings…………………………………………………………………………………………………………………………………….
……………………………………………………………………………….19
Report Requirements ..................................................................................................... Requirements
....................................................................................................................................................20
Narrative ....................................................................................................................................
........................................................................................................................................................20
Financial Statements .................................................................................................................
........................................................................................................................................................20
Capital Expenditures ................................................................................................................
........................................................................................................................................................20
Financial Obligations ................................................................................................................
........................................................................................................................................................20
Board Contact Information …………………………………………………………………………………………………………..
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Other Information ..................................................................................................................... 20
Reporting of Significant Events ............................................................................................... Events
....................................................................................................................................................20
Failure to Submit ...................................................................................................................... Submit
....................................................................................................................................................21
Service Plan Amendments ........................................................................................ Amendments
........................................................................................................................................................21
Material Modifications ............................................................................................ Modifications
........................................................................................................................................................21
Dissolution ........................................................................................................................................
Sanctions .......................................................................................................................................22
Conclusion ....................................................................................................................................22
Resolution of Approval...........................................................................................................................
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EXHIBITS
EXHIBIT A-1 Legal Description of District No. 1 Boundaries
EXHIBIT A-2 Legal Description of District No. 2 Boundaries
EXHIBIT A-3 Legal Description of District No. 3 Boundaries
EXHIBIT A-4 Legal Description of District No. 4 Boundaries
EXHIBIT A-5 Legal Description of District No. 5 Boundaries
EXHIBIT B-1 District No. 1 Boundary Map
EXHIBIT B-2 District No. 2 Boundary Map
EXHIBIT B-3 District No. 3 Boundary Map
EXHIBIT B-4 District No. 4 Boundary Map
EXHIBIT B-5 District No. 5 Boundary Map
EXHIBIT C Legal Description of Inclusion Area Boundaries
EXHIBIT D Inclusion Area Boundary Map
EXHIBIT E Vicinity Map
EXHIBIT F Legal Description of Annexation Area Boundaries
EXHIBIT G Annexation Area Boundary Map
EXHIBIT H Public Improvement Cost Estimates
EXHIBIT I Public Improvements Maps
EXHIBIT J Financial Plan
EXHIBIT K Public Benefits
EXHIBIT L Disclosure Notice
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I. INTRODUCTION
A. Purpose and Intent.
The DistrictDistricts, which isare intended to be an independent unitunits of local
government separate and distinct from the City, isare governed by this Service Plan, the
Special District Act and other applicable State law. Except as may otherwise be provided for
by State law, City Code or this Service Plan, the District'sDistricts’ 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 DistrictDistricts will provide all or part of the Public
Improvements for the Project for the use and benefit of all anticipated inhabitants and
taxpayers of the DistrictDistricts. The primary purpose of the DistrictDistricts will be to
finance the construction of a portion of these Public Improvements by the issuance of Debt.
[Add if Applicable] It is intended that this Service Plan also requires the DistrictDistricts
to pay a portion of the cost of the Regional Improvements as part of ensuring that those privately-
owned properties to be developed in the DistrictDistricts that benefit from the Regional
Improvements pay a reasonable share of the associated costs.
The District isDistricts are not intended to provide ongoing operations and
maintenance services except as expressly authorized in this Service Plan.
It is the intent of the DistrictDistricts 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 isDistricts are authorized in this Service Plan to perform
continuing operating or maintenance functions, the DistrictDistricts 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 DistrictDistricts 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 DistrictDistricts.
There are currently no other governmental entities, including the City, located in the
immediate vicinity of the DistrictDistricts that consider it desirable, feasible or practical to
undertake the planning, design, acquisition, construction, installation, relocation, redevelopment
and financing of the Public Improvements needed for the Project. Formation of the
DistrictDistricts is therefore necessary in order for the Public Improvements required for the
Project to be provided in the most economic manner possible.
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C. Objective of the City Regarding District'sDistricts’ Service Plan.
The City’s objective in approving this Service Plan is to authorize the DistrictDistricts 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 DistrictDistricts. 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. A, and at a tax mill levy may not exceed 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. 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.
Relevant Intergovernmental Agreements.
D. 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.
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:
Annexation Area Boundaries: means the boundaries of the area legally described in
Exhibit “F” and depicted on the Annexation Area Boundary Map.
Annexation Area Boundary Map: means the map attached hereto as Exhibit “G,” depicting
the property which may be included within a District subject to the limitations set forth in
Sections III.C and V of this Service Plan.
Aggregate Mill Levy: means the total mill levy resulting from adding thea District’s Debt
Mill Levy and Operating Mill Levy. TheA 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
theeach 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
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 or Boards: means the duly constituted Boardboard of Directorsdirectors of any of the DistrictDistricts, or
the boards of directors of all of the Districts in the aggregate.
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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 thewithin
a 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.
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 ObligationDistrict: 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 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 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. 4 Boundaries: means the boundaries of the area legally described in Exhibit
“A-4” attached hereto and incorporated by reference and as depicted in the District No. 4
Boundary Map.
District No. 5 Boundaries: means the boundaries of the area legally described in Exhibit
“A-5” attached hereto and incorporated by reference and as depicted in the District No. 5
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.
District No. 3 Boundary Map: means the map of the District No. 3 Boundaries attached
hereto as Exhibit “B-3” and incorporated by reference.
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District No. 3 Boundary Map: means the map of the District No. 4 Boundaries attached
hereto as Exhibit “B-4” and incorporated by reference.
District No. 3 Boundary Map: means the map of the District No. 5 Boundaries attached
hereto as Exhibit “B-5” and incorporated by reference.
Districts: means Waters’ Edge Metropolitan District No. 1, Waters’ Edge Metropolitan
District No. 2, Waters’ Edge Metropolitan District No. 3, Waters’ Edge Metropolitan
District No. 4 and Waters’ Edge Metropolitan District No. 5, collectively, organized under
and governed by this Service Plan.
End User: means any owner, or tenant of any owner, of any property within the
DistrictDistricts, 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 DistrictDistricts or an underwriter of the
District’sDistricts’ Debt.
Fees: means the fees, rates, tolls, penalties and chargers thecharges each 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
is prepared or approved by an External Financial Advisorby D.A. Davidson and Co. 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 Districtof the Districts’ 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 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 isDistricts 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 thea
District’s Debt Mill Levy may be imposed on property developed in the Service Area for
residential useproperty within its boundaries, 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 the City Council.
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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 under an Approved Development Plan.
Project: means the installation and construction of the Public Improvements for the Planned
Development., commonly referred to as “Waters’ Edge”.
Public Improvements: means the improvements and infrastructure the District isDistricts
are authorized by this Service Plan to fund and construct for the Planned Development to
serve the future taxpayers and inhabitants of the DistrictDistricts, except as specifically
prohibited or limited in this Service Plan. Public Improvements shall include, without
limitation, the improvements and infrastructure described in Exhibit “EH” 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 referenceDistricts.
Regional Mill Levy: means the property tax mill levytax 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 and the
property in the , District No. 2 Boundaries, District No. 3 Boundaries, District No. 4
Boundaries, District No. 5 Boundaries, Inclusion Area Boundaries when itand any property
within the Annexation Area Boundaries which is added, in whole or part, to the District
Boundaries.included into any of the Districts in accordance with this Service Plan.
Special District Act: means Article 1 in Title 32 of the Colorado Revised Statutes, as
amended.
Service Plan: means this service plan for the DistrictDistricts 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 InclusionService Area Boundaries when added to the District Boundaries that
will be subject to the ad valorem property taxes imposed by the DistrictDistricts.
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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 “GE” and incorporated by
reference depicting the location of the Service Area within the regional area surrounding
it.
III. BOUNDARIES AND LOCATION
A. District Boundaries.
The area of the District No. 1 Boundaries includes approximately [Insert Number]0.0574 acres and the total area proposed to be included in the Inclusion Area, District
No. 2 Boundaries isincludes approximately [Insert Number]88.354 acres.; District No. 3 Boundaries includes
approximately 0.0574 acres; District No. 4 Boundaries includes approximately 0.0574 acres and
District No. 5 Boundaries includes approximately 0.0574 acres. A legal description and map of
the District No. 1 Boundaries are attached hereto as Exhibit A-1 and Exhibit B-1, respectively.
A, a legal description and map of the Inclusion AreaDistrict No. 2 Boundaries are attached hereto
as Exhibit CA-2 and Exhibit DB-2, respectively., a legal description and map of the District No.
3 Boundaries are attached hereto as Exhibit A-3 and Exhibit B-3, respectively, a legal description
and map of the District No. 4 Boundaries are attached hereto as Exhibit A-4 and Exhibit B-4,
respectively and a legal description and map of the District No. 5 Boundaries are attached hereto
as Exhibit A-5 and Exhibit B-5, respectively. It is anticipated that the District’s Boundaries
Districts’ boundaries may expand or contract from time to time as the District undertakesDistricts
undertake inclusions or exclusions pursuant to the Special District Act, subject to the limitations
set forth in this Service Plan.
B. Inclusion Area Boundaries.
The legal description and boundary map of the Inclusion Area Boundaries are attached
hereto as Exhibit C and Exhibit D, respectfully. All property within the Inclusion Area
Boundaries is within the Service Area and may be included into or excluded from any District
without the prior approval of the City subject to the limitations of Section V of this Service Plan.
The location of the Service Area is further depicted in the vicinity mapVicinity Map attached as
Exhibit E.
C. Annexation Area Boundaries.
The legal description and boundary map of the Annexation Area Boundaries are attached
hereto as Exhibit F and Exhibit G., respectfully. The Annexation Area Boundaries are not
currently within the boundaries of the City. If, in the future, the City annexes any or all of the
Annexation Area Boundaries, and with prior City Manager approval, the then property owner of
the annexed property within the Annexation Area Boundaries may petition any of the Districts for
inclusion of such property into the boundaries of a District. Upon inclusion of any property within
the Annexation Area Boundaries into any of the Districts, in accordance with this Section III.C,
such property shall be included within the Service Area.
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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 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 DistrictDistricts. Any
such approval must be contained within an Approved Development Plan.
B. Public Benefits.
[Described theThe organization of the Districts is intended to enable the Project and
Planned Development to deliver a number of direct and indirect public benefits to be delivered by the Service Plan that comply with , including: (i)
Affordable Housing, (ii) Significant Water Reduction of Potable Water, (iii) Enhanced and
Expanded Open Space, Parks and Trails, (iv) Rehabilitation of the Windsor No. 8 Ditch, and (v)
Delayed Assisted Living (collectively the “Public Benefits”), as more particularly set forth in
Exhibit K.
This requirementsProject and Planned Development will result in an extraordinary community
exhibiting the newest aspects of smart growth, included but not limited to, providing housing
options to an under-served segment of the City’s Metro District population, energy and water conservation,
reduction in the City’s carbon footprint, substantial community services, enhancements to the
natural environment and smart and purposeful growth. The Service Area includes approximately
40% open space, incorporating direct access to such open space from each lot through a system of
expansive trails to allow bike/pedestrian/scooter access to community parks and other amenities.
The Project’s planned non-potable water system is designed not just to save potable water supplies,
but also reduce overall irrigation uses by approximately 30%. The Planned Development includes
single family house designs of 100% single level living, nearly all ranches, and many with stepless
entries designed to allow seniors to age-in-place independently and delay re-location to assisted
living facilities.
The purpose of the Districts is to provide for the planning, design, acquisition, construction,
installation, relocation and redevelopment of a portion of the Public Improvements necessary to
enable the Project and Planned Development to develop as planned.
Notwithstanding any provision to the contrary contained in this Service Plan Policy. The description must include specific and measurable objectives for the public benefits to , a District
shall not be authorized to issue any Debt, impose a Debt Mill Levy or Fees for the purpose of
repayment of Debt on any property within the Project unless and until the delivery of the Public
Benefits specifically related to the phase of development or Public Improvements which will be
deliveredfinanced with such Debt, Debt Mill Levy or Fees, are secured in a manner approved by the ServiceCity
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Manager. To satisfy this prerequisite to the issuance of Debt and to the imposition of taxes and
Fees, delivery of the Public Benefits for each phase of the Project must be secured by one or both
of the following methods, as applicable:
1. For any 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 agreeing to
provide such Public Benefits as a legally enforceable multiple-fiscal year obligation of
the District under TABOR before the City is required to issue building permits and/or
certificates of occupancy for structures to be built under an applicable Approved
Development Plan for the Project or by securing performance of that obligation with a
surety bond, letter of credit or other surety acceptable to the City Manager; and
2. For any of the Public Benefits to be provided by one or more Developers of the Project,
each such Developer must enter into a development agreement with the City under the
Developer’s applicable Approved Development Plan. Examples of specific and measurable approaches can be found in the City’s Metro District Service, 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 Policy.]for the Project or to secure such obligations with a
surety bond, letter of credit or other surety acceptable to the City Manager.
C. Assessed Valuation.
The current assessed valuation of the Service Area is approximately [Dollar
Amount]Seven Hundred Thirty-Five Thousand Dollars ($735,000) and, at build out, is expected
to be [Dollar Amount].approximately Forty Three Million Dollars ($43,000,000). 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 DistrictThe Districts
shall not add any real property to the Service Area without the City’sCity Council’s prior written
approval and in compliance with the Special District Act. The Districts shall be entitled to include
within their boundaries any property within the Annexation Area Boundaries with prior approval
of the City Manager so long as such property is first annexed into the City, and the then property
owner of property within the Annexation Area Boundaries petitions for inclusion into one of the
Districts in accordance with Section III.C of this Service Plan and the Special District Act. Upon
inclusion of any property within the Annexation Area Boundaries into a District in accordance
with this Service Plan, such property will be included within the Service Area. Once thea 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 BoardDistricts’ Boards shall be comprised of persons who are a qualified
“eligible electorelectors” of the DistrictDistricts 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 BoardDistricts’ Boards as development ofwithin the Service Area
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progresses. The DistrictDistricts shall not enter into any agreement by which the End Users’ electoral
control of the BoardBoards is removed or diminished.
VII. AUTHORIZED AND PROHIBITED POWERS
A. General Grant of Powers.
The DistrictDistricts 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 BoundariesService 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 be deemed to be a part hereof and available to beor exercised by the
Districts if the City Council first approves the exercise of such powers or authority by the
DistrictDistricts. Such approval by the City Council shall not constitute a Service Plan
Amendment.
B. Prohibited Improvements and Services and other Restrictions and Limitations.
The District’sDistricts’ 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 Section XVII of this Service Plan:
1. Eminent Domain Restriction
The DistrictDistricts shall not exercise itstheir statutory power of eminent domain
without first obtaining resolution approval from the City Council. This restriction on
the District’sDistricts’ exercise of itsthe eminent domain power is being voluntarily
acquiesced to by the DistrictDistricts and shall not be interpreted in any way as a
limitation on the District’sDistricts’ sovereign powers and shall not negatively affect
the District’sDistricts’ status as a political subdivision of the State as conferred by the
Special District Act.
2. Fee Limitation
All Fees imposed for the repayment of Debt, ifas authorized byin this Service Plan,
shall be authorized tomay be imposed by the DistrictDistricts upon all propertythe
properties within the District Boundariestheir respective boundaries only if such Fees
are due and payable no later than upon the issuance of a building permit by the City.
for those properties. 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 DistrictDistricts, nor shall this Fee
limitation apply to a District if a majority of the District’s Board is composed of End
Users.
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3. Operations and Maintenance
The primary purpose of the DistrictDistricts is to plan for, design, acquire, construct,
install, relocate, redevelop and finance the Public Improvements. The DistrictDistricts
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.
TheEach District is specifically 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. The DistrictDistricts 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’sDistricts’ proposed operational and maintenance functions
includedinclude services or activities that exceed those provided by the City or other
governmental entity. Additionally, the District shall beDistricts are authorized to
operate and maintain any part or all of thethose Public Improvements not otherwise
conveyed or dedicated to the City or another appropriate governmental entity until such
time that the District dissolvesDistricts dissolve.
4. Fire Protection Restriction
The District isDistricts 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 District isDistricts are not authorized to provide policing or other security services.
However, the DistrictDistricts 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 DistrictDistricts 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
DistrictDistricts to the United States Government or the State.
7. Golf Course Construction Restriction
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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
DistrictDistricts 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.
8. Television Relay and Translation Restriction
The District isDistricts 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 Manager.
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 DistrictDistricts 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.
10. Sales and Use Tax Exemption Limitation
The DistrictDistricts shall not exercise any City sales and use tax exemption otherwise
available to the DistrictDistricts under the City Code.
11. Sub-district Restriction
The DistrictDistricts shall not create any sub-district pursuant to the Special District
Act without the prior written approval of the City Manager.
12. Privately Placed Debt Limitation
Prior to the issuance of any privately placed Debt, the issuing 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
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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 DistrictDistricts shall not impose special assessments without the prior written approval of
the City Council.
VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS
Exhibit EH summarizes the type of Public Improvements that are projected to be
constructed and/or installed by the DistrictDistricts. 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.Ninety Five Million
Twelve Thousand Five Hundred Seventy Seven Dollars ($95,012,577) in Project costs in 2018
dollars as set forth in Exhibit H, of which Twenty Eight Million One Hundred Twenty Thousand
Two Hundred Fifty Eight Dollars ($28,120,258) are costs related to “Non-Basic Infrastructure”
and which does not include approximately Three Million Four Hundred Seventeen Thousand One
Hundred and Five Dollars ($3,417,105) in “Indirect Costs” of the Planned Development which are
necessary to provide a portion of the extraordinary Public Benefits as set forth in Exhibit L. 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 costcosts,
which are approved by the City in an Approved Development 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.
The design, phasing of construction, location and completion of Public Improvements will
be determined by the DistrictDistricts to coincide with the phasing and development of the Planned
Development and the availability of funding sources. The DistrictDistricts may, in itstheir
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. The DistrictDistricts 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.
A. Development Standards.
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The DistrictDistricts 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 DistrictDistricts 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, the DistrictDistricts 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 DistrictDistricts. Such development security may be released in
the City ManagersManager’s 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. Any limitation or
requirement concerning the time within which the City must review the District’sDistricts’ proposal or
application for an Approved Development Plan or other land use approval is hereby waived by the
DistrictDistricts.
B. Contracting.
The DistrictDistricts 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 DistrictDistricts 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 DistrictDistricts
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 DistrictDistricts to accomplish the
purposes of this Service Plan.
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
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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.
The District’sDistricts’ Financial Plan, attached as Exhibit J and incorporated by
reference, reflects the District’sDistricts’ 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 DistrictDistricts derived from DistrictDistricts’ mill levies,
Fees imposed by the DistrictDistricts, specific ownership taxes, and all other anticipated legally
available revenues. The Financial Plan is based on economic, political and industry conditions as
they exist presently 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
Districts’ goals and objectives but rather a representation of one feasible alternative. Other
financial structures may be used so long they are in compliance with this Service Plan. The
Financial Plan incorporates all of the provisions of this Section 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 DistrictDistricts will acquire, construct, and complete all of the Public
Improvements needed to serve the Service Area.
The Financial Plan demonstrates that the DistrictDistricts will have the financial ability to
discharge all Debt to be issued as part of the Financial Plan on a reasonable basis. Furthermore,
the DistrictDistricts 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 DistrictDistricts at the
time of issuance.
B. Mill Levies.
It is anticipated that the DistrictDistricts 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
TheEach District may impose an Operating Mill Levy of up to fifty (50) mills until
thesuch District imposes a Debt Mill Levy. Once thea District imposes a Debt Mill
Levy, thesuch District’s Operating Mill Levy shall cannotnot exceed ten (10) mills at
any point. Notwithstanding any of the foregoing, the Operating Mill Levy limitation
set forth in this Section IX.B.3 shall not apply if the majority of the District’s Board
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imposing such Operating Mill Levy is composed of End Users, subject to continual
compliance with the Aggregate Mill Levy Maximum.
4. Gallagher Adjustments
In the event the State’s method of calculating assessed valuation for the Taxable
Property changes after approval of this Service Plan, the District’sJanuary 1, 2018, or
any subsequent 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 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, 2018. 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 Districtissuing 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 District anticipates Districts anticipate approximately [Dollar Amount]Ninety
Five Million Twelve Thousand Five Hundred Seventy Seven Dollars ($95,012,577) in
projectProject costs in [Year]2018 dollars as set forth in Exhibit E and H, of which
Twenty Eight Million One Hundred Twenty Thousand Two Hundred Fifty Eight
Dollars ($28,120,258) are costs related to “Non-Basic Infrastructure” and which does
not include approximately Three Million Four Hundred Seventeen Thousand One
Hundred and Five Dollars ($3,417,105) in “Indirect Costs” of the Planned
Development which are necessary to provide a portion of the extraordinary Public
Benefits as set forth in Exhibit K. The Districts project to have the ability to issue
approximately Forty Nine Million Eight Hundred Sixty Thousand Six Hundred Twenty
Five Dollars (49,868,625) in Debt, as set forth in Exhibit J, and anticipate issuing
approximately [Dollar Amount]Thirty One Million Five Hundred Thousand Dollars
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($31,500,000) in Debt to pay for a portion of the Project costs, which such costs as set forth in Exhibit J, which Debt
issuance amount plus any associated and reasonable costs of issuance shall be the
amount of the Maximum Debt Authorization. The Intergovernmental Capital Pledge
Agreements among two or more of the Districts pledging the collection and payment
of property taxes or Fees by one District for the repayment of Debt by a separate issuing
District shall not count against the Maximum Debt Authorization. The Districts
collectively shall not issue Debt in excess of the Maximum Debt Authorization. The DistrictBonds,
loans, notes or other instruments which have been refunded shall not count against the
Maximum Debt Authorization. The Districts must seek 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 EH 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 EH 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 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 DistrictDistricts 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 DistrictDistricts as part of a Debt financing transaction. The DistrictDistricts 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 DistrictDistricts 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 KL (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
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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 DistrictDistricts to provide a written
opinion as to whether any Debt issuance is in the best interest of the issuing District once the total
amount of Debt issued by the DistrictDistricts exceeds Five Million Dollars ($5,000,000). The
External Financial Advisor is to provide advice to the Districtissuing District’s 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 issuing 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 issuing District.
Debt shall not be undertaken by the DistrictDistricts if found to be unreasonable by the
External Financial Advisor.
G. Disclosure to Debt Purchasers.
DistrictAny 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 DistrictDistricts 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’sDistricts’ 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 DistrictDistricts in the payment of any such obligation.
I. TABOR Compliance.
The DistrictDistricts shall comply with the provisions of the Taxpayer’s Bill of Rights in
Article X, § 20 of the Colorado Constitution (“TABOR”).. In the discretion of the BoardDistricts’
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Boards, the DistrictDistricts 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’sDistricts’ 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],$200,000, 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].$100,000.
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 as set
forth in Section IX.B.3 of this Service Plan, as well as from other revenues legally available to the
DistrictDistricts.
X. REGIONAL IMPROVEMENTS
The DistrictDistricts 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
DistrictDistricts shall impose a Regional Improvement Mill Levy on all property within the
DistrictDistricts’ boundaries under the following terms:
A. Regional Mill Levy Authority.
The DistrictDistricts shall seek the authority to impose an additional Regional Mill Levy
of five (5) mills as part of the District’sDistricts’ initial TABOR election. The DistrictDistricts
shall also seek from the electorate in that election the authority under TABOR to enter into an
intergovernmental agreement with the City obligating the DistrictDistricts to pay as a multiple-
fiscal year obligation the proceeds from the Regional Mill Levy to the City. Obtaining such voter-
approval of this intergovernmental agreement shall be a precondition to the DistrictDistricts
issuing any Debt under this Service Plan.
B. Regional Mill Levy Imposition.
The DistrictDistricts shall each 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 DistrictDistricts
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 shallwill 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.
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IfIf the Districts are so notified by the City Manager, the Regional Improvements shall be
considered public improvements that the DistrictDistricts 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 DistrictDistricts 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; or
2. No Intergovernmental Agreement
If no intergovernmental agreement exists between the DistrictDistricts and the City,
then theall 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 DistrictDistricts 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 thea 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.
J. Gallagher Adjustment.
In the event the method of calculating assessed valuation is changed after the date of
approval of this Service PlanJanuary 1, 2018, or any subsequent 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 DistrictDistrict’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, 2018. 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
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XI. CITY FEES
The DistrictDistricts 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).
A. General.
The DistrictEach of the 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 District hasDistricts have been issued. These documentsThe Districts may file
a consolidated annual report. The annual report may be made available to the public on the City’s
website.
B. Board Meetings.
The District’s boardEach of directorsthe 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 District’sDistricts’ creation. Notice for each of these meetings shall be given in
accordance with the requirements of the Special District Act and other applicable State Law. This
meeting requirement shall not apply until there is a least one End User of property within the
District. Also, this requirement shall no 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, each the DistrictDistricts’ annual
reportreports 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
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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 of each District 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 BoundariesDistrict’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.
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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 DistrictDistrict’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 the
Service Plan, atin 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 DistrictDistricts 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
consistent with the then-current Approved Development Plans for the Project. Any action of one
or more of the DistrictDistricts, which is a material modification of this Service Plan requiring a
Service Plan Amendment as provided in in Section XV belowof this Service Plan or any other
applicable provision 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 DistrictDistricts that does not materially depart from the provisions of this Service Plan,
unless otherwise provided in this Service Plan.
Departures from the Service Plan by any of the Districts 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 DistrictDistricts;
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.
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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 theany
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 thesuch
District has provided for the payment or discharge of all of its outstanding indebtedness and other
financial obligations as required pursuant to the Special District Act or any other applicable State
law.
XVII. SANCTIONS
Should any of the DistrictDistricts undertake any act without obtaining prior City Council
approval or consent or City Manager approval or consent, as required in 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, 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 injunctive relief against the District, to ensure compliance with the
provisions of the Service Plan or applicable law.
XVIII. 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 DistrictDistricts;
2. The existing service in the Service Area to be served by the DistrictDistricts is
inadequate for present and projected needs;
3. The District isDistricts 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. RESOLUTION OF APPROVAL
24
Formatted: Font: Bold
The District agreesDistricts agree to incorporate the City Council’s resolution approving this Service
Plan, including any conditions on anyimposed by City Council on such approval, into the copy of the
Service Plan presented to the District Court for and in Larimer County, Colorado.
25
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Formatted: Centered
EXHIBIT A-1
Legal Description of District No. 1 Boundaries
26
Revised: August 21, 2018
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Formatted: Centered
EXHIBIT A-2
Legal Description of District No. 2 Boundaries
27
Revised: August 21, 2018
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Formatted: Centered
EXHIBIT A-3
Legal Description of District No. 3 Boundaries
28
Revised: August 21, 2018
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EXHIBIT A-4
Legal Description of District No. 4 Boundaries
29
Revised: August 21, 2018
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EXHIBIT A-5
Legal Description of District No. 5 Boundaries
30
Revised: August 21, 2018
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EXHIBIT B-1
District No. 1 Boundary Map
31
Revised: August 21, 2018
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EXHIBIT B-2
District No. 2 Boundary Map
32
Revised: August 21, 2018
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EXHIBIT B-3
District No. 3 Boundary Map
33
Revised: August 21, 2018
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EXHIBIT B-4
District No. 4 Boundary Map
34
Revised: August 21, 2018
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EXHIBIT B-5
District No. 5 Boundary Map
35
Revised: August 21, 2018
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EXHIBIT C
Legal Description of Inclusion Area Boundaries
36
Revised: August 21, 2018
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EXHIBIT D
Inclusion Area Boundary Map
37
Revised: August 21, 2018
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Formatted: Centered
EXHIBIT E
Vicinity Map
38
Revised: August 21, 2018
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EXHIBIT F
Legal Description of Annexation Area Boundaries
39
Revised: August 21, 2018
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Formatted: Centered
EXHIBIT G
Annexation Area Boundary Map
40
Revised: August 21, 2018
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EXHIBIT H
Public Improvement Cost Estimates
41
Revised: August 21, 2018
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EXHIBIT I
Public Improvement Maps
42
Revised: August 21, 2018
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EXHIBIT J
Financial Plan
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Formatted: Font: Times New Roman, Bold, Not
Expanded by / Condensed by
Formatted: Font: Times New Roman, Bold
43
Revised: August 21, 2018
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EXHIBIT K
Public Benefits
44
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EXHIBIT L
Disclosure Notice
1
Waters’ Edge Metro District Request
Tom Leeson
09-04-18
ATTACHMENT 5
Project Description
55+ Age Targeted
Senior friendly
design (age in
place)
Senior amenities
Enhanced open
space
235 acres ; 847 units
2
Policy Comparison – Key Provisions
3
Waters’ Edge Metro District Metro District Policy
Mill Levy Caps 50 Mills 50 Mills
Basic Infrastructure Partially ($3.4M) To enable public benefit
Eminent Domain Will Comply Prohibited
Debt Limitation Will Comply 100% of Capacity
Dissolution Limit Ongoing for O&M 40 years (end user refunding
exception)
Citizen Control Will Comply As early as possible
Multiple Districts Yes (5) Projected over an extended period
Commercial/Residential
Ratio
Predominately Residential (70,000 SF
Commercial)
N/A
Public Improvements – Phase I
4
Phase I
Improvements Amount
Non-potable Water System $3.1 Million
Sustainability Center $1.5 Million
Landscaping $840 Thousand
Design, Engineering, PM, Contingency $4 Million
Total $9.4 Million
Public Improvements – Phase II
5
Phase II
Improvements Amount
Non-potable Water System $2.6 Million
Senior Activity Center $7 Million
Rehabilitated Windsor No. 8 Ditch $2 Million
Landscaping $979 Thousand
“Basic” – site prep., infrastructure, etc. *$3.4 Million
Design, Engineering, PM, Contingency $6 Million
Total $22 Million
* To offset costs for providing 10% Affordable Housing
Public Improvements Details
6
Non-Basic Infrastructure to
be paid for by Metro District
Non‐Basic Infrastructure Amount
Non‐potable Water System $ 5,716,500
Open Space, Landscaping, Community Amenities
Sustainability Center $ 1,500,000
Senior Activities Center $ 7,000,000
Rehabilitation of Windsor No. 8 Ditch $ 2,000,000
Landscaping $ 1,818,832
Subtotal $ 12,318,832
Soft Costs
Design, Engineering, etc $ 3,973,920
Construction Management $ 750,629
Contingency $ 5,360,377
Subtotal $ 10,084,926
Non‐Basic Total $ 28,120,258
Basic Infrastructure
Affordable Housing Costs $ 3,400,000
Total Public Benefit $ 31,520,258
Basic Infrastructure paid for
by Metro District to offset
Affordable Housing Costs
Policy Evaluation & Public Benefits
Environmental
Sustainability
GHG Reduction
Water/Energy
Conservation
Multimodal
Transportation
Enhance Resiliency
Increase Renewable
Capacity
Critical Public
Infrastructure
Existing significant
infrastructure
challenges
On-site
Off-site
Smart Growth
Management
Increase density
Walkability/Pedestrian
Infrastructure
Availability of Transit
Public Spaces
Mixed-Use
Strategic
Priorities
Affordable Housing
Infill/Redevelopment
Economic Health
Outcomes
7
Triple Bottom Line Scan Results
8
(+) Rehabilitation of
Windsor #8 Ditch
(+) Reduction in
Potable water use
(+) Sustainability
Center
Environmental Economic Social
(+) Funding of Regional
road improvements
(+) Expanded trails and
open space
(+) Increased social
interaction
(-) increased cost of
living – higher
taxes
Recommendation
9
Staff recommends approval of the resolution
-1-
RESOLUTION 2018-084
OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE CONSOLIDATED SERVICE PLAN FOR
WATERS’ EDGE METROPOLITAN DISTRICT NOS. 1-5
WHEREAS, Title 32 of the Colorado Revised Statutes (“C.R.S.”) authorizes the
formation of various kinds of governmental entities to finance and operate public services and
infrastructure, including metropolitan districts; and
WHEREAS, in July 2008, the City Council adopted Resolution 2008-069 in which it
approved a policy setting forth various guidelines, requirements and criteria concerning the
City’s review and approval of service plans for metropolitan districts (the “2008 Policy”); and
WHEREAS, on August 21, 2018, City Council adopted Resolution 2018-079 approving
the “City of Fort Collins Policy for Reviewing Service Plans for Metropolitan Districts” (the
“2018 Policy”) setting forth guidelines, requirements and criteria applicable to the City’s
consideration a metropolitan district service plan to replace and supersede those in the 2008
Policy, except for the fee and notice requirements when they have been satisfied by a service
plan applicant under the 2008 Policy before the adoption of the 2018 Policy; and
WHEREAS, pursuant to the provisions of Article 1 of Title 32 of the Colorado Revised
Statutes (the “Special District Act”), Waters’ Edge Investments LLLP (the “Petitioner”) has
submitted to the City a Consolidated Service Plan (the “Service Plan”) for the Waters’ Edge
Metropolitan District Nos. 1-5 (each a “District” and collectively the “Districts”); and
WHEREAS, a copy of the Service Plan is attached as Exhibit “A” and incorporated
herein by reference; and
WHEREAS, the Districts will be organized to provide for the planning, design,
acquisition, construction, installation, relocation, redevelopment and operation and maintenance
of certain public improvements, as more specifically described in the Service Plan; and
WHEREAS, the 2008 Policy includes the requirement that the Petitioner must cause
notice of the public hearing at which the approval resolution for the Service Plan is to be
considered by the City Council, to be mailed by first class mail to the owners of record all
property within the proposed Districts and within any inclusion area specifically identified in the
Service Plan (the “Property Owners”) at least 10 days in advance of the public hearing; and
WHEREAS, in lieu of mailing the notice required in the 2008 Policy, the Petitioner has
published and provided actual notice to each of the Property Owners at least 10 days in advance
of the City Council’s September 4, 2018, public hearing on the Service Plan (the “Public
Hearing”), and the Petitioner has secured and provided to the City Clerk before the Public
Hearing copies of an “Acknowledgment of Notice” from each of the Property Owners; and
WHEREAS, each of the Property Owners has expressly waived in their respective
Acknowledgement of Notice all rights to any additional notice under the 2008 Policy, the 2018
Policy and Resolution 2018-079; and
-2-
WHEREAS, the City Council has reviewed the Service Plan, the Acknowledgements of
Notice and considered the testimony and evidence presented at the Public Hearing; and
WHEREAS, the Special District Act requires that any service plan submitted to the
district court for the creation of a metropolitan district must first be approved by resolution of the
governing body of the municipality within which the proposed district lies; and
WHEREAS, the City Council wishes to approve the Service Plan for the Districts.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT COLLINS, COLORADO, 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 determines that the Petitioner has
substantially complied with the City’s notice requirements in the 2008 Policy, the 2018 Policy
and Resolution 2018-079 with regard to the Public Hearing on the Service Plan, and that the
Property Owners have each received actual notice of the Public Hearing and expressly waived
any further notice of the Public Hearing that might otherwise be required under the 2008 Policy,
the 2018 Policy and Resolution 2018-079.
Section 3. That the City Council hereby finds that the Service Plan contains, or
sufficiently provides for, the items described in Section 32-1-202(2), C.R.S., and that:
(a) There is sufficient existing and projected need for organized service in the
area to be serviced by the proposed Districts;
(b) The existing service in the area to be served by the proposed Districts is
inadequate for present and projected needs;
(c) The proposed Districts are capable of providing economical and sufficient
service to the area within their proposed boundaries; and
(d) The area to be included within the proposed Districts has, or will have, the
financial ability to discharge the proposed indebtedness on a reasonable
basis.
Section 4. The City Council’s findings are based solely upon the evidence in the
Service Plan as presented at the Public Hearing and the City has not conducted any independent
investigation of the evidence. The City makes no guarantee as to the financial viability of the
Districts or the achievability of the desired results.
Section 5. That the City Council hereby approves the Service Plan.
Section 6. That the City Council’s approval of the Service Plan is not a waiver or a
limitation upon any power that the City Council is legally permitted to exercise regarding the
property within the Districts.
-3-
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 4th
day of September, A.D. 2018.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
CONSOLIDATED SERVICE PLAN
FOR
:$7(56¶('*( METROPOLITAN DISTRICT NOS. 1-5
CITY OF FORT COLLINS, COLORADO
Prepared by:
White Bear Ankele Tanaka & Waldron, Professional Corporation
748 Whalers Way, Suite 210
Fort Collins, Colorado 80525
Submitted On: August 29, 2018
Approved On: September 4, 2018
EXHIBIT A
i
Table of Contents
INTRODUCTION..........................................................................................................................1
Purpose and Intent ........................................................................................................................1
Need for Districts .........................................................................................................................1
2EMHFWLYHRIWKH&LW\UHJDUGLQJ'LVWULFWV¶6HUYLFH3ODQ ...............................................................2
City Approvals .............................................................................................................................2
DEFINITIONS ...............................................................................................................................2
BOUNDARIES AND LOCATION ..............................................................................................6
DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC BENEFITS &
ASSESSED VALUATION ............................................................................................................6
Project and Planned Development ...............................................................................................6
Public Benefits .............................................................................................................................7
Assessed Valuation ......................................................................................................................8
INCLUSION OF LAND IN THE SERVICE AREA ..................................................................8
DISTRICT GOVERNANCE ........................................................................................................8
AUTHORIZED AND PROHIBITED POWERS ........................................................................8
Prohibited Improvements and Services and other Restrictions and Limitations ........................9
Eminent Domain Restriction ..............................................................................................9
Fee Limitation ....................................................................................................................9
Operations and Maintenance ..............................................................................................9
Fire Protection Restriction ...............................................................................................10
Public Safety Services Restriction ...................................................................................10
Grants from Governmental Agencies Restriction ............................................................10
Golf Course Construction Restriction ................................................................................10
Television Relay and Translation Restriction ..................................................................10
Potable Water and Wastewater Treatment Facilities .......................................................11
Sales and Use Tax Exemption Limitation .......................................................................11
Sub-district Restriction ....................................................................................................11
Initial Debt Limitation .....................................................................................................11
Privately Placed Debt Limitation .....................................................................................11
Special Assessments ..........................................................................................................11
ii
PUBLIC IMPROVEMENTS AND ESTIMATED COSTS .....................................................11
Development Standards ..............................................................................................................12
Contracting .................................................................................................................................12
Land Acquisition and Conveyance ............................................................................................13
Equal Employment and Discrimination .....................................................................................13
FINANCIAL PLAN/PROPOSED DEBT ..................................................................................13
Financial Plan .............................................................................................................................13
Mill Levies .................................................................................................................................14
Aggregate Mill Levy Maximum ......................................................................................14
Regional Mill Levy Not Included in Other Mill Levies ..................................................14
Operating Mill Levy ........................................................................................................14
Gallagher Adjustments .....................................................................................................14
Excessive Mill Levy Pledges ............................................................................................14
Refunding Debt ................................................................................................................15
Maximum Debt Authorization ..........................................................................................15
Maximum Voted Interest Rate and Underwriting Discount ......................................................16
Interest Rate and Underwriting Discount Certification ..............................................................16
Disclosure to Purchasers ............................................................................................................16
External Financial Advisor .........................................................................................................16
Disclosure to Debt Purchasers ....................................................................................................16
Security for Debt ........................................................................................................................17
TABOR Compliance ..................................................................................................................17
'LVWULFWV¶2SHUDWLQJ&RVWV ..........................................................................................................17
Regional Improvements...............................................................................................................17
Regional Mill Levy Authority ....................................................................................................17
Regional Mill Levy Imposition ..................................................................................................18
City Notice Regarding Regional Improvements ........................................................................18
Regional Improvements Authorized Under Service Plan ..........................................................18
Expenditure of Regional Mill Levy Revenues ...........................................................................18
Intergovernmental Agreement .........................................................................................18
No Intergovernmental Agreement ...................................................................................18
iii
Regional Mill Levy Term ...........................................................................................................18
Completion of Regional Improvements .....................................................................................19
City Authority to Require Imposition ........................................................................................19
Regional Mill Levy Not Included in Other Mill Levies .............................................................19
Gallagher Adjustment ................................................................................................................19
City Fees ........................................................................................................................................19
Bankruptcy Limitations ..............................................................................................................19
Annual Reports and Board Meetings .........................................................................................19
General .......................................................................................................................................19
%RDUG0HHWLQJV««««««««««««««««««««««««««««««19
Report Requirements ..................................................................................................................20
Narrative ...........................................................................................................................20
Financial Statements .........................................................................................................20
Capital Expenditures ........................................................................................................20
Financial Obligations ........................................................................................................20
Other Information ............................................................................................................20
Reporting of Significant Events .................................................................................................20
Failure to Submit ........................................................................................................................21
Service Plan Amendments ...........................................................................................................21
Material Modifications ................................................................................................................21
Dissolution ....................................................................................................................................22
Sanctions .......................................................................................................................................22
Conclusion ....................................................................................................................................22
Resolution of Approval ................................................................................................................23
iv
EXHIBITS
EXHIBIT A-1 Legal Description of District No. 1 Boundaries
EXHIBIT A-2 Legal Description of District No. 2 Boundaries
EXHIBIT A-3 Legal Description of District No. 3 Boundaries
EXHIBIT A-4 Legal Description of District No. 4 Boundaries
EXHIBIT A-5 Legal Description of District No. 5 Boundaries
EXHIBIT B-1 District No. 1 Boundary Map
EXHIBIT B-2 District No. 2 Boundary Map
EXHIBIT B-3 District No. 3 Boundary Map
EXHIBIT B-4 District No. 4 Boundary Map
EXHIBIT B-5 District No. 5 Boundary Map
EXHIBIT C Legal Description of Inclusion Area Boundaries
EXHIBIT D Inclusion Area Boundary Map
EXHIBIT E Vicinity Map
EXHIBIT F Legal Description of Annexation Area Boundaries
EXHIBIT G Annexation Area Boundary Map
EXHIBIT H Public Improvement Cost Estimates
EXHIBIT I Public Improvements Maps
EXHIBIT J Financial Plan
EXHIBIT K Public Benefits
EXHIBIT L Disclosure Notice
1
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 for by State law, City Code
RUWKLV6HUYLFH3ODQWKH'LVWULFWV¶DFWLYLWLHVDUHVXEMHFWWRUHYLHZDQGDSSURYDOE\WKH&LW\
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 or part of the Public Improvements for
the Project for the use and benefit of all anticipated inhabitants and taxpayers of the Districts.
The primary purpose of the Districts will be to finance the construction of a portion of these
Public Improvements by the issuance of Debt.
It is intended that this Service Plan also requires the Districts to pay a portion of the cost
of the Regional Improvements as part of ensuring that those privately-owned properties to be
developed in the Districts 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
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.
2
C. Objective of the City RegarGLQJ'LVWULFWV¶6HUYLFH3ODQ
7KH&LW\¶VREMHFWLYHLQDSSURYLQJWKLV 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. 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 a tax mill levy may not exceed 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. 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. City Approvals.
$Q\SURYLVLRQLQWKLV6HUYLFH3ODQUHTXLULQJ³&LW\´RU³&LW\&RXQFLO´DSSURYDORUFRQVHQW
VKDOOUHTXLUHWKH&LW\&RXQFLO¶VSULRUZULWWHQDSSURYDORUFRQVHQWH[HUFLVHGLQLWVVROHGLVFUHWLRQ
Any provision in this Service Plan requiring ³&LW\0DQDJHU´DSSURYDORUFRQVHQWVKDOOUHTXLUHWKH
&LW\0DQDJHU¶VSULRUZULWWHQDSSURYDORUFRQVHQWH[HUFLVHGLQWKH&LW\0DQDJHU¶VVROHGLVFUHWLRQ
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:
Annexation Area Boundaries: means the boundaries of the area legally described in
Exhibit ³F´ and depicted on the Annexation Area Boundary Map.
Annexation Area Boundary Map: means the map attached hereto as Exhibit ³G,´ depicting
the property which may be included within a District subject to the limitations set forth in
Sections III.C and V of this Service Plan.
Aggregate Mill Levy: means the total mill levy resulting from adding a District¶s Debt Mill
Levy and Operating Mill Levy. A 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 each
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
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 or Boards: means the duly constituted board of directors of any 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
3
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 coOOHFWLYHO\WKH&LW\¶V0XQLFLSDO&KDUWHU0XQLFLSDO&RGH/DQG8VH
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 within a
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.
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.
District: means :DWHUV¶ (GJH Metropolitan District No. 1, :DWHUV¶ (GJH Metropolitan
District No. 2 :DWHUV¶ (GJH Metropolitan District No. 3, WatHUV¶ (GJH 0HWURSROLWDQ
'LVWULFW1RDQG:DWHUV¶(GJH Metropolitan District No. 5, individually, each organized
under and governed by this Service Plan.
District No. 1 Boundaries: means the boundaries of the area legally described in Exhibit
³$-´ 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
³$-´ attached hereto and incorporated by reference and as depicted in the District No. 2
Boundary Map.
District No. 3 Boundaries: means the boundaries of the area legally described in Exhibit
³$-´ attached hereto and incorporated by reference and as depicted in the District No. 3
Boundary Map.
District No. 4 Boundaries: means the boundaries of the area legally described in Exhibit
³$-4´ attached hereto and incorporated by reference and as depicted in the District No. 4
Boundary Map.
District No. 5 Boundaries: means the boundaries of the area legally described in Exhibit
³$-5´ attached hereto and incorporated by reference and as depicted in the District No. 5
Boundary Map.
District No. 1 Boundary Map: means the map of the District No. 1 Boundaries attached
hereto as ([KLELW³%-´ and incorporated by reference.
District No. 2 Boundary Map: means the map of the District No. 2 Boundaries attached
hereto as ([KLELW³%-´ and incorporated by reference.
District No. 3 Boundary Map: means the map of the District No. 3 Boundaries attached
hereto as ([KLELW³%-´ and incorporated by reference.
4
District No. 3 Boundary Map: means the map of the District No. 4 Boundaries attached
hereto as ([KLELW³%-4´ and incorporated by reference.
District No. 3 Boundary Map: means the map of the District No. 5 Boundaries attached
hereto as Exhibit ³%-5´ and incorporated by reference.
Districts: means :DWHUV¶(GJH Metropolitan District No. 1, :DWHUV¶(GJH Metropolitan
District No. 2 :DWHUV¶ (GJH Metropolitan District No. 3, :DWHUV¶ (GJH 0HWURSROLWDQ
'LVWULFW1RDQG:DWHUV¶(GJH Metropolitan District No. 5, collectively, organized under
and governed by this Service Plan.
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
SXEOLFILQDQFHDGYLVRULQWKH%RQG%X\HU¶V0XQLFLSDO0DUNHW3ODFHRULQWKH&LW\¶VVROH
discretion, other recognized publication as a provider of financial projections; and (3) is
not an officer or employee of the Districts RUDQXQGHUZULWHURIWKH'LVWULFWV¶'HEW.
Fees: means the fees, rates, tolls, penalties and charges each 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
is prepared by D.A. Davidson and Co. 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 of the 'LVWULFWV¶
Debt is expected to be defeased or paid in the ordinary course.
Inclusion Area Boundaries: means the boundaries of the property that is anticipated to be
added to the District Boundaries after the District organization, which property is legally
described in ([KLELW³&´ attached hereto and incorporated by reference and depicted in
the map attached hereto as ([KLELW³'´ 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.7 of this Service Plan.
Maximum Debt Mill Levy Imposition Term: means the maximum term during which a
'LVWULFW¶V'HEW0LOO/evy may be imposed on residential property within its boundaries,
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 the 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
5
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 under an Approved Development Plan.
Project: means the installation and construction of the Public Improvements for the Planned
Development, FRPPRQO\UHIHUUHGWRDV³:DWHUV¶(GJH´
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 limited in this
Service Plan. Public Improvements shall include, without limitation, the improvements and
infrastructure described in ([KLELW³H´ 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.
Regional Mill Levy: means the property tax mill tax 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, District
No. 2 Boundaries, District No. 3 Boundaries, District No. 4 Boundaries, District No. 5
Boundaries, Inclusion Area Boundaries and any property within the Annexation Area
Boundaries which is included into any of the Districts in accordance with this Service Plan.
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
subject to the ad valorem taxes imposed by the Districts.
TABOR PHDQV &RORUDGR¶V 7D[SD\HU¶V %LOO RI 5LJKWV LQ $UWLFOH ; 6HFWLRQ RI WKH
Colorado Constitution.
Vicinity Map: means the map attached hereto as ([KLELW ³E´ and incorporated by
reference depicting the location of the Service Area within the regional area surrounding
it.
6
III. BOUNDARIES AND LOCATION
A. District Boundaries.
The area of the District No. 1 Boundaries includes approximately 0.0574 acres, District
No. 2 Boundaries includes approximately 88.354 acres; District No. 3 Boundaries includes
approximately 0.0574 acres; District No. 4 Boundaries includes approximately 0.0574 acres and
District No. 5 Boundaries includes approximately 0.0574 acres. A legal description and map of
the District No. 1 Boundaries are attached hereto as Exhibit A-1 and Exhibit B-1, respectively, a
legal description and map of the District No. 2 Boundaries are attached hereto as Exhibit A-2 and
Exhibit B-2, respectively, a legal description and map of the District No. 3 Boundaries are attached
hereto as Exhibit A-3 and Exhibit B-3, respectively, a legal description and map of the District
No. 4 Boundaries are attached hereto as Exhibit A-4 and Exhibit B-4, respectively and a legal
description and map of the District No. 5 Boundaries are attached hereto as Exhibit A-5 and
Exhibit B-5, respectively,WLVDQWLFLSDWHGWKDWWKH'LVWULFWV¶ERXQGDULHVPD\H[SDQGRUFRQWUDFW
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.
B. Inclusion Area Boundaries.
The legal description and boundary map of the Inclusion Area Boundaries are attached
hereto as Exhibit C and Exhibit D, respectfully. All property within the Inclusion Area
Boundaries is within the Service Area and may be included into or excluded from any District
without the prior approval of the City subject to the limitations of Section V of this Service Plan.
The location of the Service Area is further depicted in the Vicinity Map attached as Exhibit E.
C. Annexation Area Boundaries.
The legal description and boundary map of the Annexation Area Boundaries are attached
hereto as Exhibit F and Exhibit G, respectfully. The Annexation Area Boundaries are not
currently within the boundaries of the City. If, in the future, the City annexes any or all of the
Annexation Area Boundaries, and with prior City Manager approval, the then property owner of
the annexed property within the Annexation Area Boundaries may petition any of the Districts for
inclusion of such property into the boundaries of a District. Upon inclusion of any property within
the Annexation Area Boundaries into any of the Districts, in accordance with this Section III.C,
such property shall be included within the Service Area.
IV. DESCRIPTION OF PROJECT, PLANNED DEVELOPMENT, PUBLIC
BENEFITS & ASSESSED VALUATION
A. Project and Planned Development.
The current Developer of the Project and Planned Development is :DWHUV¶ (GJH
Investments LLLP. The Development Plan for the Project includes approximately 848 single
family residential and multi-family units, a community garden, a community center, a
sustainability center, a commercial center and substantial open space and walking trails. The goal
of this Project and Planned Development is to create an age-targeted community that allows
residents to remain in tKHLUKRPHVDVORQJDVSRVVLEOH DVHJPHQWRIWKH&LW\¶VSRSXODWLRQZKLFK
7
is currently under-served. The Planned Development is currently intended to reach build out in
2027, with an estimated population of 2,120 persons. In accordance with the Financial Plan, the
estimated assessed valuation of the Planned Development in 2023 will be $14,281,485, and in
2028 will be $42,985,737.
Approval of this Service Plan by the City Council does not imply approval of the
development of any particular land-use for any specific area within the Districts. Any such
approval must be contained within an Approved Development Plan.
B. Public Benefits.
The organization of the Districts is intended to enable the Project and Planned
Development to deliver a number of direct and indirect public benefits, including: (i) Affordable
Housing, (ii) Significant Water Reduction of Potable Water, (iii) Enhanced and Expanded Open
Space, Parks and Trails, (iv) Rehabilitation of the Windsor No. 8 Ditch, and (v) Delayed Assisted
Living FROOHFWLYHO\WKH³3XEOLF%HQHILWV´
8
certificates of occupancy for structures to be built under an applicable Approved
Development Plan for the Project or by securing performance of that obligation with a
surety bond, letter of credit or other surety acceptable to the City Manager; and
2. For any of the Public Benefits to be provided by one or more Developers of the Project,
each such Developer must enter into a development agreement with the City under the
'HYHORSHU¶VDSSOLFDEOH$SSURYHG'HYHORSPHQW3ODQZKLFKDJUHHPHQWPXVWOHJDOO\
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 the Project or to secure such obligations with a
surety bond, letter of credit or other surety acceptable to the City Manager.
C. Assessed Valuation.
The current assessed valuation of the Service Area is approximately Seven Hundred
Thirty-Five Thousand Dollars ($735,000) and, at build out, is expected to be approximately Forty
Three Million Dollars ($43,000,000). 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
The Districts shall not add any property to the Service Area without the City Council¶V
prior written approval and in compliance with the Special District Act. The Districts shall be
entitled to include within their boundaries any property within the Annexation Area Boundaries
with prior approval of the City Manager so long as such property is first annexed into the City, and
the then property owner of property within the Annexation Area Boundaries petitions for inclusion
into one of the Districts in accordance with Section III.C of this Service Plan and the Special
District Act. Upon inclusion of any property within the Annexation Area Boundaries into a District
in accordance with this Service Plan, such property will be included within the Service Area. Once
a District has issued Debt, it shall not H[FOXGHUHDOSURSHUW\IURPWKH'LVWULFW¶VERXQGDULHVZLWKRXW
the prior written consent of the City Council.
VI. DISTRICT GOVERNANCE
7KH'LVWULFWV¶%RDUGVVKDOOEHFRPSULVHGRISHUVRQVZKRDUHDTXDOLILHG³HOLJLEOHHOHFWRUV´
of the Districts as provided in the Special District Act. It is anticipated that over time, the End
8VHUVZKRDUHHOLJLEOHHOHFWRUVZLOODVVXPHGLUHFWHOHFWRUDOFRQWURORIWKH'LVWULFWV¶%RDUGVDV
development within the Service Area progresses. The Districts shall not enter into any agreement
E\ZKLFKWKH(QG8VHUV¶HOHFWRUDOFRQWURORIWKH%RDUGVLVUHPRYHGRUGLPLQLVKHG
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.
9
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 be deemed to be a part hereof and available to or exercised by the
Districts if the City Council first approves 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.
7KH 'LVWULFWV¶ SRZHUV DQG DXWKRULW\ XQGHU WKLV 6HUYLFH 3ODQ WR SURYLGH 3XEOLF
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 Section XVII of this Service Plan:
1. Eminent Domain Restriction
The Districts shall not exercise their statutory power of eminent domain without first
REWDLQLQJUHVROXWLRQDSSURYDOIURPWKH&LW\&RXQFLO7KLVUHVWULFWLRQRQWKH'LVWULFWV¶
exercise of the eminent domain power is being voluntarily acquiesced to by the
Districts and shall not be LQWHUSUHWHG LQ DQ\ ZD\ DV D OLPLWDWLRQ RQ WKH 'LVWULFWV¶
VRYHUHLJQ SRZHUV DQG VKDOO QRW QHJDWLYHO\ DIIHFW WKH 'LVWULFWV¶ VWDWXV DV SROLWLFDO
subdivision of the State as conferred by the Special District Act.
2. Fee Limitation
All Fees imposed for the repayment of Debt, as authorized in this Service Plan, may be
imposed by the Districts upon the properties 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 for those properties. 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 Districts, nor shall
this Fee limitation apply to a District if a PDMRULW\RIWKH'LVWULFW¶V%RDUGis 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 jurisdictiRQ RU RZQHUV¶
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. Each
District is specifically 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. The Districts shall also be specifically authorized to conduct
operations and maintenance functions related to the Public Improvements that are not
SURYLGHGE\WKH&LW\RURWKHUJRYHUQPHQWDOHQWLW\RUWRWKHH[WHQWWKDWWKH'LVWULFWV¶
proposed operational and maintenance functions include services or activities that
10
exceed those provided by the City or other governmental entity. Additionally, the
Districts are authorized to operate and maintain any part or all of those 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 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 Districts 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 SXEOLFJROIFRXUVHVZLWKLQWKH&LW\¶VERXQGDULHVWKH'LVWULFWVVKDOO
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.
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 Manager.
11
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
PDLQWDLQVXFKIDFLOLWLHVZLWKRXWREWDLQLQJWKH&LW\&RXQFLO¶VSULRUZULWWHQDSSURYDO
10. Sales and Use Tax Exemption Limitation
The Districts shall not exercise any City 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 Manager.
12. Privately Placed Debt Limitation
Prior to the issuance of any privately placed Debt, the issuing 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
WKH'LVWULFW¶V6HUYLFH3ODQ
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 Districts shall not impose special assessments without the prior written approval of
the City Council.
VIII. PUBLIC IMPROVEMENTS AND ESTIMATED COSTS
Exhibit H 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 Ninety Five Million Twelve Thousand Five Hundred
Seventy Seven Dollars ($95,012,577) in Project costs in 2018 dollars as set forth in Exhibit H, of
12
which Twenty Eight Million One Hundred Twenty Thousand Two Hundred Fifty Eight Dollars
($28,120,258
13
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.
A. Financial Plan.
7KH'LVWULFWV¶)LQDQFLDO3ODQDWWDFKHGDVExhibit J and incorporated by reference, reflects
WKH'LVWULFWV¶DQWLFLSDWHGVFKHGXOHIRULQFXUULQJ'HEWWRIXQG3XEOLF,PSURYHPHQWVLQVXSSRUWRI
the Project. The Financial Plan also reflects the schedule of all anticipated revenues flowing to the
Districts derived IURP'LVWULFWV¶PLOOOHYLHV)HHV LPSRVHGE\ WKH'LVWULFWVVSHFLILFRZQHUVKLS
taxes, and all other anticipated legally available revenues. The Financial Plan is based on
economic, political and industry conditions as they exist presently and reasonable projections and
estimates of future conditions. These projections and estimates are not to be interpreted as the only
PHWKRGRILPSOHPHQWDWLRQRIWKH'LVWULFWV¶goals and objectives but rather a representation of one
feasible alternative. Other financial structures may be used so long they are in compliance with
this Service Plan. The Financial Plan incorporates all of the provisions of this Section 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 of the 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
14
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
Each District may impose an Operating Mill Levy of up to fifty (50) mills until such
District imposes a Debt Mill Levy. Once a District imposes a Debt Mill Levy, such
'LVWULFW¶V 2SHUDWLQJ 0LOO /HY\ VKDOO QRW H[FHHG WHQ
15
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
SXUSRVHVLI
16
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
uQGHUWKLV6HUYLFH3ODQXQWLOWKHUHLVLQFOXGHGLQWKH'HYHORSHU¶V$SSURYHG'HYHORSPHQW3ODQ
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 L WKH³'LVFORVXUH1RWLFH´
17
³%\DFFHSWDQFHRIWKLVLQVWUXPHQWWKHRZQHURIWKLV'HEWDJUHHVDQG
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
RIWKH&LW\RI)RUW&ROOLQV´
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
DVDJXDUDQWHHE\WKH&LW\RISD\PHQWRIDQ\RIWKH'LVWULFWV¶REOLJDWLRQV QRUVKDOODQ\WKLQJ 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 obligation.
I. TABOR Compliance.
The Districts shall comply with the provisions of TABOR. In the discretion of the 'LVWULFWV¶
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
ZLOOUHPDLQXQGHUWKHFRQWURORIWKH'LVWULFW¶V%RDUG
J. 'LVWULFWV¶2SHUDWLQJ&RVWV.
The estimated cost of acquiring land, engineering services, legal services and
administrative servicesWRJHWKHUZLWKWKHHVWLPDWHGFRVWVRIWKH'LVWULFWV¶RUJDQL]DWLRQDQGLQLWLDO
operations, are anticipated to be $200,000, which will be eligible for reimbursement from Debt
proceeds.
In addition to the capital costs of the Public Improvements, the Districts will require
operating funds for administration and to plan and cause the Public Improvements to be operated
DQGPDLQWDLQHG7KHILUVW\HDU¶VRSHUDWLQJEXGJHWLVHVWLPDWHGWREH
Ongoing administration, operations and maintenance costs may be paid from property
taxes collected through the imposition of an Operating Mill Levy as set forth in Section IX.B.3 of
this Service Plan, as well as other revenues legally available to the Districts.
X. REGIONAL IMPROVEMENTS
The Districts shall be authorized to provide for the planning, design, acquisition, funding,
construction, installation, relocation, redevelopment, administration and overhead costs related to
the provision of Regional Improvements. At the discretion of the City, the Districts shall impose
a 5HJLRQDO ,PSURYHPHQW0LOO/HY\ RQ DOO SURSHUW\ZLWKLQWKH'LVWULFWV¶ERXQGDULHVXQGHUWKH
following terms:
A. Regional Mill Levy Authority.
The Districts shall seek the authority to impose an additional Regional Mill Levy of five
(5) mills as part of the 'LVWULFWV¶LQLWLDO7$%25HOHFWLRQ The Districts shall also seek from the
18
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 this
intergovernmental agreement shall be a precondition to the Districts issuing any Debt under this
Service Plan.
B. Regional Mill Levy Imposition.
The Districts shall each 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 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 will 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 the Districts are 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 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 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; or
2. No Intergovernmental Agreement
If no intergovernmental agreement exists between the Districts and the City, then
all 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.
19
H. City Authority to Require Imposition.
7KH&LW\¶VDXWKRULW\WRUHTXLUHWKHLQLWLDWLRQRIWKHLPSRVLWLRn of a Regional Mill Levy shall
expire fifteen (15) years after December 31st of the year in which a 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.
J. Gallagher Adjustment.
In the event the method of calculating assessed valuation is changed after January 1, 2018,
or any subsequent 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¶V%RDUG 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, 2018. 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 reqXLUHPHQWVRI6WDWHODZLQFOXGHGLQWKH³SROLWLFDORUJRYHUQPHQWDO
SRZHUV´UHVHUYHGWRWKH6WDWHXQGHUWKH86%DQNUXSWF\&RGH 86&
20
the Special District Act and other applicable State Law. This meeting requirement shall not apply
until there is a least one End User of property within the District. Also, this requirement shall no
longer apply when a mDMRULW\RIWKHGLUHFWRUVRQWKH'LVWULFW¶V%RDUGDUH(QG8VHUV
C. Report Requirements.
Unless waived in writing by the City Manager, each WKH'LVWULFWV¶DQQXDOUHSRUWs must
include the following:
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
7KHQDPHVDQGFRQWDFWLQIRUPDWLRQRIWKHFXUUHQWGLUHFWRUVRQWKH'LVWULFW¶VBoard,
any District manager and the attorney for the District shall be listed in the report.
7KH'LVWULFW¶VFXUUHQWRIILFHDGGUHVVSKRQHQXPEHUHPDLODGGUHVVDQGDQ\ZHEVLWH
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 of each District shall also include information as to any of the following
that occurred during the report year:
21
1. Boundary changes made or proposed to the District¶V 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 the 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
the Public Improvements, shall be permitted to accommodate development needs consistent with
the then-current Approved Development Plans for the Project. 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 Section XV of this Service Plan or any other applicable provision 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.
22
Departures from the Service Plan by any of the Districts 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 any
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 such
District has provided for the payment or discharge of all of its outstanding indebtedness and other
financial obligations as required pursuant to the Special District Act or any other applicable State
law.
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 in 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, 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 injunctive relief against the District, to ensure compliance with the
provisions of the Service Plan or applicable law.
XVIII. CONCLUSION
It is submitted that this Service Plan, as required by C.R.S. Section 32-1-203(2), establishes
that:
23
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. RESOLUTION OF APPROVAL
7KH'LVWULFWVDJUHHWRLQFRUSRUDWHWKH&LW\&RXQFLO¶V UHVROXWLRQ approving this Service
Plan, including any conditions imposed by City Council on such approval, into the copy of the
Service Plan presented to the District Court for and in Larimer County, Colorado.
EXHIBIT A-1
Legal Description of District No. 1 Boundaries
WATERS’ EDGE METROPOLITAN DISTRICT NO. 1
A parcel of land, located in the Southwest Quarter (SW1/4) of Section Twenty-nine (29), Township
8 North (T.8N.), Range Sixty-Eight West (R.68W.) of the Sixth Principal Meridian (6th P.M.), City
of Fort Collins, County of Larimer, State of Colorado and being more particularly described as
follows:
COMMENCING at the Southwest corner of said Section 29 and assuming the West line of Section
29 as bearing North 00°28’06” East being a Grid Bearing of the Colorado State Plane Coordinate
System, North Zone, North American Datum 1983/2011, a distance of 2638.33 feet and with all
other bearings contained herein relative thereto;
THENCE North 00°28’06” East along said West line a distance of 1705.41 feet to the extension of
centerline of Morningstar Way;
THENCE South 89°31’52” East along said extension a distance of 30.00 feet to the East Right-of-
Way line of Turnberry Road;
THENCE continuing along said extension South 89°31’52” East a distance of 24.00 feet to the
POINT OF BEGINNING;
THENCE North 00°28’06” East a distance of 50.00 feet;
THENCE South 89°31’52” East a distance of 50.00 feet;
THENCE South 00°28’06” West a distance of 50.00 feet;
THENCE North 89°31’52” West a distance of 50.00 feet to the POINT OF BEGINNING.;
Said described parcel of land contains 2,500 Square Feet or 0.057 Acres, more or less (±).
SURVEYOR’S STATEMENT
I, Steven Parks, a Colorado Licensed Professional Land Surveyor do hereby state that this Parcel
Description was prepared under my personal supervision and checking, and that it is true and
correct to the best of my knowledge and belief.
___________________________________________________________
Steven Parks - on behalf of King Surveyors
Colorado Licensed Professional
Land Surveyor #38348
KING SURVEYORS
650 East Garden Drive
Windsor, Colorado 80550
(970) 686-5011
EXHIBIT A-2
Legal Description of District No. 2 Boundaries
O:\2015374-B\PROP_DESC\2015374B-D2-OVERALL BD.docPage 1 of 2
WATERS’ EDGE METROPOLITAN DISTRICT NO. 2
A parcel of land, located in the South Half (S1/2) of Section Thirty (30), Township 8 North
(T.8N.), Range Sixty-Eight West (R.68W.) of the Sixth Principal Meridian (6th P.M.), City of Fort
Collins, County of Larimer, State of Colorado and being more particularly described as follows:
Lots 1 through 345 and Tracts AA, BB, A, B, C, D, E, F, G, H, I, J, K, K-1, K-2, L, L-1, L-2, M,
M-1, M-2, N, O, P, Q, R, S, T, U, V, W, X, Y and Z of Waters Edge as recorded July 19, 2010 as
Reception No. 20100041008 of the records of the Larimer County Clerk and Recorder, located in
the South Half (S1/2) of Section Thirty (30), Township Eight North (T.8N.), Range Sixty-eight
West (R.68W.) of the Sixth Principal Meridian (6th P.M.), City of Fort Collins, County of Larimer,
State of Colorado.
Said described parcel of land contains 88.126 acres, more or less.
SURVEYOR’S STATEMENT
I, Steven Parks, a Colorado Licensed Professional Land Surveyor do hereby state that this Parcel
Description was prepared under my personal supervision and checking, and that it is true and
correct to the best of my knowledge and belief.
___________________________________________________________
Steven Parks - on behalf of King Surveyors
Colorado Licensed Professional
Land Surveyor #38348
KING SURVEYORS
650 East Garden Drive
Windsor, Colorado 80550
(970) 686-5011
EXHIBIT A-3
Legal Description of District No. 3 Boundaries
O:\2015374-B\PROP_DESC\2015374B-D3-PARCEL.doc Page 1 of 2
WATERS’ EDGE METROPOLITAN DISTRICT NO. 3
A parcel of land, located in the Southwest Quarter (SW1/4) of Section Twenty-nine (29), Township
8 North (T.8N.), Range Sixty-Eight West (R.68W.) of the Sixth Principal Meridian (6th P.M.), City
of Fort Collins, County of Larimer, State of Colorado and being more particularly described as
follows:
COMMENCING at the Southwest corner of said Section 29 and assuming the West line of Section
29 as bearing North 00°28’06” East being a Grid Bearing of the Colorado State Plane Coordinate
System, North Zone, North American Datum 1983/2011, a distance of 2638.33 feet and with all
other bearings contained herein relative thereto;
THENCE North 00°28’06” East along said West line a distance of 1705.41 feet to the extension of
centerline of Morningstar Way;
THENCE South 89°31’52” East along said extension a distance of 30.00 feet to the East Right-of-
Way line of Turnberry Road;
THENCE continuing along said extension South 89°31’52” East a distance of 24.00 feet to the
POINT OF BEGINNING;
THENCE South 89°31’52” East a distance of 50.00 feet;
THENCE South 00°28’06” West a distance of 50.00 feet;
THENCE North 89°31’52” West a distance of 50.00 feet;
THENCE North 00°28’06” East a distance of 50.00 feet
to the POINT OF BEGINNING;
Said described parcel of land contains 2,500 Square Feet or 0.057 Acres, more or less (±).
SURVEYOR’S STATEMENT
I, Steven Parks, a Colorado Licensed Professional Land Surveyor do hereby state that this Parcel
Description was prepared under my personal supervision and checking, and that it is true and
correct to the best of my knowledge and belief.
___________________________________________________________
Steven Parks - on behalf of King Surveyors
Colorado Licensed Professional
Land Surveyor #38348
KING SURVEYORS
650 East Garden Drive
Windsor, Colorado 80550
(970) 686-5011
EXHIBIT A-4
Legal Description of District No. 4 Boundaries
O:\2015374-B\PROP_DESC\2015374B-D4-PARCEL.doc Page 1 of 2
WATERS’ EDGE METROPOLITAN DISTRICT NO. 4
A parcel of land, located in the Southwest Quarter (SW1/4) of Section Twenty-nine (29), Township
8 North (T.8N.), Range Sixty-Eight West (R.68W.) of the Sixth Principal Meridian (6th P.M.), City
of Fort Collins, County of Larimer, State of Colorado and being more particularly described as
follows:
COMMENCING at the Southwest corner of said Section 29 and assuming the West line of Section
29 as bearing North 00°28’06” East being a Grid Bearing of the Colorado State Plane Coordinate
System, North Zone, North American Datum 1983/2011, a distance of 2638.33 feet and with all
other bearings contained herein relative thereto;
THENCE North 00°28’06” East along said West line a distance of 1705.41 feet to the extension of
centerline of Morningstar Way;
THENCE South 89°31’52” East along said extension a distance of 30.00 feet to the East Right-of-
Way line of Turnberry Road;
THENCE continuing along said extension South 89°31’52” East a distance of 74.00 feet to the
POINT OF BEGINNING;
THENCE North 00°28’06” East a distance of 50.00 feet;
THENCE South 89°31’52” East a distance of 50.00 feet;
THENCE South 00°28’06” West a distance of 50.00 feet;
THENCE North 89°31’52” West a distance of 50.00 feet to the POINT OF BEGINNING;
Said described parcel of land contains 2,500 Square Feet or 0.057 Acres, more or less (±).
SURVEYOR’S STATEMENT
I, Steven Parks, a Colorado Licensed Professional Land Surveyor do hereby state that this Parcel
Description was prepared under my personal supervision and checking, and that it is true and
correct to the best of my knowledge and belief.
___________________________________________________________
Steven Parks - on behalf of King Surveyors
Colorado Licensed Professional
Land Surveyor #38348
KING SURVEYORS
650 East Garden Drive
Windsor, Colorado 80550
(970) 686-5011
EXHIBIT A-5
Legal Description of District No. 5 Boundaries
O:\2015374-B\PROP_DESC\2015374B-D5-PARCEL.doc Page 1 of 2
WATERS’ EDGE METROPOLITAN DISTRICT NO. 5
A parcel of land, located in the Southwest Quarter (SW1/4) of Section Twenty-nine (29), Township
8 North (T.8N.), Range Sixty-Eight West (R.68W.) of the Sixth Principal Meridian (6th P.M.), City
of Fort Collins, County of Larimer, State of Colorado and being more particularly described as
follows:
COMMENCING at the Southwest corner of said Section 29 and assuming the West line of Section
29 as bearing North 00°28’06” East being a Grid Bearing of the Colorado State Plane Coordinate
System, North Zone, North American Datum 1983/2011, a distance of 2638.33 feet and with all
other bearings contained herein relative thereto;
THENCE North 00°28’06” East along said West line a distance of 1705.41 feet to the extension of
centerline of Morningstar Way;
THENCE South 89°31’52” East along said extension a distance of 30.00 feet to the East Right-of-
Way line of Turnberry Road;
THENCE continuing along said extension South 89°31’52” East a distance of 74.00 feet to the
POINT OF BEGINNING;
THENCE South 89°31’52” East a distance of 50.00 feet;
THENCE South 00°28’06” West a distance of 50.00 feet;
THENCE North 89°31’52” West a distance of 50.00 feet;
THENCE North 00°28’06” East a distance of 50.00 feet to the POINT OF BEGINNING;
Said described parcel of land contains 2,500 Square Feet or 0.057 Acres, more or less (±).
SURVEYOR’S STATEMENT
I, Steven Parks, a Colorado Licensed Professional Land Surveyor do hereby state that this Parcel
Description was prepared under my personal supervision and checking, and that it is true and
correct to the best of my knowledge and belief.
___________________________________________________________
Steven Parks - on behalf of King Surveyors
Colorado Licensed Professional
Land Surveyor #38348
KING SURVEYORS
650 East Garden Drive
Windsor, Colorado 80550
(970) 686-5011
EXHIBIT B-1
District No. 1 Boundary Map
SUBJECT
PARCEL
2500 SQ.FT.
0.057 ACRES
650 E. Garden Drive | Windsor, Colorado 80550
phone: (970) 686-5011 | fax: (970) 686-5821
KING SURVEYORS
email: contact@KingSurveyors.com
P
R
O
F
E
S
S
I
O
N
A
L
L
A
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U
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V
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EXHIBIT B-2
District No. 2 Boundary Map
650 E. Garden Drive | Windsor, Colorado 80550
phone: (970) 686-5011 | fax: (970) 686-5821
KING SURVEYORS
email: contact@KingSurveyors.com
EXHIBIT B-3
District No. 3 Boundary Map
SUBJECT
PARCEL
2500 SQ.FT.
0.057 ACRES
650 E. Garden Drive | Windsor, Colorado 80550
phone: (970) 686-5011 | fax: (970) 686-5821
KING SURVEYORS
email: contact@KingSurveyors.com
P
R
O
F
E
S
S
I
O
N
A
L
L
A
N
D
S
U
R
V
E
Y
O
R
EXHIBIT B-4
District No. 4 Boundary Map
SUBJECT
PARCEL
2500 SQ.FT.
0.057 ACRES
650 E. Garden Drive | Windsor, Colorado 80550
phone: (970) 686-5011 | fax: (970) 686-5821
KING SURVEYORS
email: contact@KingSurveyors.com
P
R
O
F
E
S
S
I
O
N
A
L
L
A
N
D
S
U
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V
E
Y
O
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EXHIBIT B-5
District No. 5 Boundary Map
SUBJECT
PARCEL
2500 SQ.FT.
0.057 ACRES
650 E. Garden Drive | Windsor, Colorado 80550
phone: (970) 686-5011 | fax: (970) 686-5821
KING SURVEYORS
email: contact@KingSurveyors.com
P
R
O
F
E
S
S
I
O
N
A
L
L
A
N
D
S
U
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EXHIBIT C
Legal Description of Inclusion Area Boundaries
EXHIBIT D
Inclusion Area Boundary Map
EXHIBIT E
Vicinity Map
EXHIBIT F
Legal Description of Annexation Area Boundaries
EXHIBIT G
Annexation Area Boundary Map
EXHIBIT H
Public Improvement Cost Estimates
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^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐ
ĞŶĐŚĞƐ ϭϬ Ψϭ͕ϬϬϬ ΨϭϬ͕ϬϬϬ
KƉĞŶ^ƉĂĐĞƌďŽƌ ϭϮ ΨϮ͕ϱϬϬ ΨϯϬ͕ϬϬϬ
WĂƚŝŽǁŝƚŚ&ŝƌĞWŝƚ Ϯ Ψϰ͕ϱϬϬ Ψϵ͕ϬϬϬ
WĂƚŝŽǁͬĨŽƵŶƚĂŝŶ Ϯ Ψϱ͕ϬϬϬ ΨϭϬ͕ϬϬϬ
DĞĚŝĂŶƌďŽƌ Ϯ ΨϮ͕ϱϬϬ Ψϱ͕ϬϬϬ
ƌďŽƌ^ƚƌƵĐƚƵƌĞĂŶĚ^ĞĂƚtĂůů ϰ Ψϲ͕ϬϬϬ ΨϮϰ͕ϬϬϬ
y,//d,
/E&Z^dZhdhZ WZ >/D/EZz s >KWD EdW>E
ĞƐĐƌŝƉƚŝŽŶŽĨWŚĂƐĞ/WƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚ ƐƚŝŵĂƚĞĚŽƐƚƐ
dŽƚĂů^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐ Ψϴϴ͕ϬϬϬ
dŽƉ^Žŝů͕&ŝŶĞ'ƌĂĚŝŶŐΘWƌĞƉ
^ŽŝůƉƌĞƉĨŽƌƐĞĞĚĂŶĚƐŽĚĂƌĞĂƐ ϯϴϵ͕ϮϬϬ ƐĨ ΨϬ͘ϭϲ ΨϲϮ͕ϮϳϮ
^ŽŝůƉƌĞƉĨŽƌĚƌLJůĂŶĚƐĞĞĚ ϲϴϴ͕ϱϭϬ ƐĨ ΨϬ͘ϭϯ Ψϴϵ͕ϱϬϲ
dŽƚĂů^ŽŝůWƌĞƉ Ψϭϱϭ͕ϳϳϴ
DĂƐŽŶƌLJ
EĞŝŐŚďŽƌ ŶƚƌLJŽůƵŵŶƐ ϭϮ Ψϯ͕ϱϬϬ ΨϰϮ͕ϬϬϬ
WƌŝŵĂƌLJ ŶƚƌLJDŽŶƵŵĞŶƚ ϭ ΨϮϰ͕ϬϬϬ ΨϮϰ͕ϬϬϬ
^ĐƵůƉƚƵƌĞ ϭ ΨϲϬ͕ϬϬϬ ΨϲϬ͕ϬϬϬ
dŽƚĂůDĂƐŽŶƌLJ ΨϭϮϲ͕ϬϬϬ
>ĞƐƐϭͬϮŽĨWůĂŶƚŝŶŐƐ͕^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐ͕ ;Ψϴϯϵ͕ϴϯϮͿ
dŽƉ^ŽŝůĂŶĚDĂƐŽŶƌLJ
dŽƚĂůKƉĞŶ^ƉĂĐĞ͕WĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶ ΨϮ͕ϯϯϵ͕ϴϯϮ
dŽƚĂůŽƐƚ ƐƚŝŵĂƚĞƐͲEŽŶͲĂƐŝĐ Ψϱ͕ϰϰϱ͕ϯϯϮ
WůƵƐĂůůŽǁĂŶĐĞΛϭϴйĨŽƌĚĞƐŝŐŶ͕ ϭϴй ϭ͕ϲϭϬ͕ϭϲϬ
ĞŶŐŝŶĞĞƌŝŶŐ͕ĞƚĐ͘
WůƵƐŽŶƐƚƌƵĐƚŝŽŶDĂŶĂŐĞŵĞŶƚ ϯ͘ϰϬй ϯϬϰ͕ϭϰϭ
ŽŶƚŝŶŐĞŶĐLJ ϮϬй Ϯ͕ϭϳϭ͕ϵϮϳ
dŽƚĂůͲEŽŶͲĂƐŝĐ Ψϵ͕ϱϯϭ͕ϱϱϵ
ĂƐŝĐ
WŚĂƐĞϭΘϮ>ŽƚƐ;ϮϬϵůŽƚƐͿ
ůůŽĐĂƚŝŽŶ;ϱϬйͿŽĨKǀĞƌůŽƚ'ƌĂĚŝŶŐ Ψ ϳϱϮ͕ϱϬϬ
'ĞŶĞƌĂůĐŽŶĚŝƚŝŽŶƐ͕ƌĞŵŽǀĂůƐ͕ĞƌŽƐŝŽŶ ϭ͕ϰϯϳ͕ϭϱϭ
ĐŽŶƚƌŽůΘĞĂƌƚŚǁŽƌŬ
^ĂŶŝƚĂƌLJ^ĞǁĞƌ ϭ͕ϱϴϰ͕ϲϮϴ
^ƚŽƌŵƌĂŝŶ ϭ͕Ϯϲϲ͕ϯϭϵ
tĂƚĞƌůŝŶĞ ϭ͕ϱϮϰ͕ϴϴϱ
ZĞƚĂŝŶŝŶŐǁĂůůƐ ϭ͕Ϭϯϯ͕ϵϴϮ
hƚŝůŝƚLJ^ůĞĞǀŝŶŐ ϭϮϳ͕ϱϬϬ
ŽŶĐƌĞƚĞ&ůĂƚǁŽƌŬ ϭ͕ϵϲϭ͕ϬϬϴ
ĂƐĞŽƵƌƐĞĂŶĚWĂǀŝŶŐ Ϯ͕ϯϵϲ͕ϴϮϳ
dƌĂĨĨŝĐŽŶƚƌŽů ϭϬϵ͕ϳϬϬ
^ƵďͲƚŽƚĂůWŚĂƐĞƐϭΘϮ Ψ ϭϮ͕ϭϵϰ͕ϱϬϬ
y,//d,
/E&Z^dZhdhZ WZ >/D/EZz s >KWD EdW>E
ĞƐĐƌŝƉƚŝŽŶŽĨWŚĂƐĞ/WƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚ ƐƚŝŵĂƚĞĚŽƐƚƐ
WŚĂƐĞϯ>ŽƚƐ;ϯϴůŽƚƐͿ
'ĞŶĞƌĂůĐŽŶĚŝƚŝŽŶƐ͕ƌĞŵŽǀĂůƐ͕ĞƌŽƐŝŽŶ Ϯϭϵ͕ϱϬϭ
ĐŽŶƚƌŽůΘĞĂƌƚŚǁŽƌŬ
^ƚŽƌŵƌĂŝŶ ϭϳ͕ϳϬϲ
tĂƚĞƌůŝŶĞ ϭϴϯ͕ϴϵϬ
hƚŝůŝƚLJ^ůĞĞǀŝŶŐ ϭϬ͕ϬϬϬ
ŽŶĐƌĞƚĞ&ůĂƚǁŽƌŬ ϭϳϴ͕Ϯϯϱ
ĂƐĞŽƵƌƐĞĂŶĚWĂǀŝŶŐ ϭϴϮ͕ϱϲϴ
dƌĂĨĨŝĐŽŶƚƌŽů ϯ͕ϭϬϬ
^ƵďͲƚŽƚĂůWŚĂƐĞϯ Ψ ϳϵϱ͕ϬϬϬ
WŚĂƐĞƐϰΘϱ>ŽƚƐ;ϭϯϬƚŽǁŶŚŽŵĞĂŶĚĐŽŶĚŽůŽƚƐͿ
'ĞŶĞƌĂůĐŽŶĚŝƚŝŽŶƐ͕ƌĞŵŽǀĂůƐ͕ĞƌŽƐŝŽŶ ϱϱϭ͕ϮϬϭ
ĐŽŶƚƌŽůΘĞĂƌƚŚǁŽƌŬ
^ĂŶŝƚĂƌLJ^ĞǁĞƌ ϯϯϰ͕ϰϰϭ
^ƚŽƌŵƌĂŝŶ ϵϱ͕ϭϳϳ
tĂƚĞƌůŝŶĞ ϯϬϰ͕ϲϮϲ
ŽŶĐƌĞƚĞ&ůĂƚǁŽƌŬ ϰϭϬ͕ϴϲϮ
ĂƐĞŽƵƌƐĞĂŶĚWĂǀŝŶŐ ϲϭϮ͕ϱϲϭ
dƌĂĨĨŝĐŽŶƚƌŽů ϯϱ͕ϰϱϬ
^ƵďͲƚŽƚĂůWŚĂƐĞƐϰΘϱ Ψ Ϯ͕ϯϰϰ͕ϯϭϴ
KƉĞŶ^ƉĂĐĞ͕WĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶ
KƉĞŶ^ƉĂĐĞ&ĞŶĐŝŶŐ
ZĂŝů&ĞŶĐĞ ϮϬ͕ϱϴϬ ůĨ ΨϮϬ Ψϰϭϭ͕ϲϬϬ
ŽƵƌƚLJĂƌĚ'ĂƚĞƐ ϱϬ ΨϲϬϬ ΨϯϬ͕ϬϬϬ
dŽƚĂů&ĞŶĐŝŶŐ Ψϰϰϭ͕ϲϬϬ
WůƵƐϭͬϮŽĨWůĂŶƚŝŶŐƐ͕^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐ͕ Ψϴϯϵ͕ϴϯϮ
dŽƉ^ŽŝůĂŶĚDĂƐŽŶƌLJ
^ƵďͲƚŽƚĂůKƉĞŶ^ƉĂĐĞ͕WĂƌŬƐĂŶĚZĞĐ͘ Ψϭ͕Ϯϴϭ͕ϰϯϮ
dŽƚĂůŽƐƚ ƐƚŝŵĂƚĞƐͲĂƐŝĐ Ψ ϭϲ͕ϲϭϱ͕ϮϱϬ
WůƵƐĂůůŽǁĂŶĐĞΛϭϴйĨŽƌĚĞƐŝŐŶ͕ ϭϴй ΨϮ͕ϵϵϬ͕ϳϰϱ
ĞŶŐŝŶĞĞƌŝŶŐ͕ĞƚĐ͘
WůƵƐŽŶƐƚƌƵĐƚŝŽŶDĂŶĂŐĞŵĞŶƚ ϯ͘ϰϬй Ψϱϲϰ͕ϵϭϴ
ŽŶƚŝŶŐĞŶĐLJ ϮϬй Ψϰ͕Ϭϯϰ͕ϭϴϯ
y,//d,
/E&Z^dZhdhZ WZ >/D/EZz s >KWD EdW>E
ĞƐĐƌŝƉƚŝŽŶŽĨWŚĂƐĞ/WƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚ ƐƚŝŵĂƚĞĚŽƐƚƐ
dŽƚĂůͲĂƐŝĐ ΨϮϰ͕ϮϬϱ͕Ϭϵϲ
'ƌĂŶĚdŽƚĂůWŚĂƐĞ/ Ψϯϯ͕ϳϯϲ͕ϲϱϱ
y,//d,
/E&Z^dZhdhZ WZ >/D/EZz s >KWD EdW>E
ĞƐĐƌŝƉƚŝŽŶŽĨWŚĂƐĞ//WƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚ ƐƚŝŵĂƚĞĚŽƐƚƐ
ĞƐĐƌŝƉƚŝŽŶƐ hŶŝƚƐ hŶŝƚdLJƉĞ hŶŝƚŽƐƚ dŽƚĂůŽƐƚ ƐƚŝŵĂƚĞƐ
EŽŶͲĂƐŝĐ
EŽŶͲƉŽƚĂďůĞtĂƚĞƌ^LJƐƚĞŵ
dŽƚĂů/ƌƌŝŐĂƚŝŽŶ^LJƐƚĞŵ ΨϮ͕ϲϭϭ͕ϬϬϬ
KƉĞŶ^ƉĂĐĞ͕WĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶ
^ĞŶŝŽƌĐƚŝǀŝƚŝĞƐĞŶƚĞƌ ϭ Ψϳ͕ϬϬϬ͕ϬϬϬ Ψϳ͕ϬϬϬ͕ϬϬϬ
ZĞŚĂďŝůŝƚĂƚĞtŝŶĚƐŽƌEŽϴŝƚĐŚ ϭ Ψ Ϯ͕ϬϬϬ͕ϬϬϬ ΨϮ͕ϬϬϬ͕ϬϬϬ
dŽƚĂůWůĂŶƚŝŶŐƐ Ψϭ͕ϱϯϭ͕ϬϬϬ
dŽƚĂů^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐ ΨϭϬϯ͕ϬϬϬ
dŽƉ^Žŝů͕&ŝŶĞ'ƌĂĚŝŶŐΘWƌĞƉ Ψϭϳϳ͕ϬϬϬ
dŽƚĂůDĂƐŽŶƌLJ Ψϭϰϳ͕ϬϬϬ
dŽƚĂůZĞƚĂŝŶŝŶŐtĂůůƐͲKƉĞŶ^ƉĂĐĞ ΨϱϰϮ͕ϬϬϬ
>ĞƐƐϭͬϮŽĨWůĂŶƚŝŶŐƐ͕ĂŶĚdŽƉ^Žŝů͕ ;ϵϳϵ͕ϬϬϬͿ
^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐΘDĂƐŽŶƌLJ
dŽƚĂůWĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶ ΨϭϬ͕ϱϮϭ͕ϬϬϬ
WůƵƐĂůůŽǁĂŶĐĞΛϭϴйĨŽƌĚĞƐŝŐŶ͕ ϭϴй Ψ Ϯ͕ϯϲϯ͕ϳϲϬ
ĞŶŐŝŶĞĞƌŝŶŐ͕ĞƚĐ͘
WůƵƐŽŶƐƚƌƵĐƚŝŽŶDĂŶĂŐĞŵĞŶƚ ϯ͘ϰϬй Ψ ϰϰϲ͕ϰϴϴ
ŽŶƚŝŶŐĞŶĐLJ ϮϬй Ψ ϯ͕ϭϴϴ͕ϰϱϬ
'ƌĂŶĚdŽƚĂůEŽŶͲĂƐŝĐ Ψ ϭϵ͕ϭϯϬ͕ϲϵϴ
Ύ WŚĂƐĞ//ŝƐϭ͘ϭϲϱƚŝŵĞƐůĂƌŐĞƌƚŚĂŶ
WŚĂƐĞ/ƐŽWŚĂƐĞ//ĐŽƐƚĞƐƚŝŵĂƚĞƐĂƌĞ
ĐĂůĐƵůĂƚĞĚĂƚϭ͘ϭϲϱŽĨWŚĂƐĞ/
ĞƐƚŝŵĂƚĞƐ͘
ĂƐŝĐ
y,//d,
/E&Z^dZhdhZ WZ >/D/EZz s >KWD EdW>E
ĞƐĐƌŝƉƚŝŽŶŽĨWŚĂƐĞ//WƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚ ƐƚŝŵĂƚĞĚŽƐƚƐ
ƐƚŝŵĂƚĞĚWŚĂƐĞ//ůŽƚƐ;ϰϳϭůŽƚƐͿ
ůůŽĐĂƚŝŽŶ;ϱϬйͿŽĨKǀĞƌůŽƚ'ƌĂĚŝŶŐ Ψ ϭ͕ϲϵϯ͕ϬϬϬ
'ĞŶĞƌĂůĐŽŶĚŝƚŝŽŶƐ͕ƌĞŵŽǀĂůƐ͕ĞƌŽƐŝŽŶ ϯ͕Ϯϯϰ͕ϬϬϬ
ĐŽŶƚƌŽůΘĞĂƌƚŚǁŽƌŬ
^ĂŶŝƚĂƌLJ^ĞǁĞƌ ϯ͕ϱϲϱ͕ϬϬϬ
^ƚŽƌŵƌĂŝŶ Ϯ͕ϴϰϵ͕ϬϬϬ
tĂƚĞƌůŝŶĞ ϯ͕ϰϯϭ͕ϬϬϬ
ZĞƚĂŝŶŝŶŐǁĂůůƐ Ϯ͕ϯϮϲ͕ϬϬϬ
hƚŝůŝƚLJ^ůĞĞǀŝŶŐ Ϯϴϳ͕ϬϬϬ
ŽŶĐƌĞƚĞ&ůĂƚǁŽƌŬ ϰ͕ϰϭϮ͕ϬϬϬ
ĂƐĞŽƵƌƐĞĂŶĚWĂǀŝŶŐ ϱ͕ϯϵϯ͕ϬϬϬ
dƌĂĨĨŝĐŽŶƚƌŽů Ϯϰϳ͕ϬϬϬ
dŽƚĂůKƉĞŶ^ƉĂĐĞ&ĞŶĐŝŶŐ Ψϱϭϰ͕ϬϬϬ
WůƵƐϭͬϮŽĨWůĂŶƚŝŶŐƐ͕ĂŶĚdŽƉ^Žŝů͕ ϵϳϵ͕ϬϬϬ
^ŝƚĞ&ƵƌŶŝƐŚŝŶŐƐΘDĂƐŽŶƌLJ;ďĂƐŝĐƉŽƌƚŝŽŶͿ
^ƵďͲƚŽƚĂůWŚĂƐĞ//ĂƐŝĐ Ψ Ϯϴ͕ϵϯϬ͕ϬϬϬ
EŽƚĞ͗^ŝŶĐĞWŚĂƐĞ//ŝƐŶŽƚƉůĂƚƚĞĚ͕ĐŽƐƚĞƐƚŝŵĂƚĞƐĂƌĞĨĂĐƚŽƌĞĚŝŶƌĞůĂƚŝŽŶƐŚŝƉƚŽƚŚĞďŝĚƐĨŽƌWŚĂƐĞƐϭĂŶĚϮ͕
ŝŶWŚĂƐĞ/͘
WůƵƐĂůůŽǁĂŶĐĞΛϭϴйĨŽƌĚĞƐŝŐŶ͕ ϭϴй Ψ ϱ͕ϮϬϳ͕ϰϬϬ
ĞŶŐŝŶĞĞƌŝŶŐ͕ĞƚĐ͘
WůƵƐŽŶƐƚƌƵĐƚŝŽŶDĂŶĂŐĞŵĞŶƚ ϯ͘ϰϬй Ψ ϵϴϯ͕ϲϮϬ
ŽŶƚŝŶŐĞŶĐLJ ϮϬй Ψ ϳ͕ϬϮϰ͕ϮϬϰ
dŽƚĂůĂƐŝĐͲWŚĂƐĞ// Ψ ϰϮ͕ϭϰϱ͕ϮϮϰ
'ƌĂŶĚdŽƚĂůWŚĂƐĞ// Ψ ϲϭ͕Ϯϳϱ͕ϵϮϮ
Ύ WŚĂƐĞ//ŝƐϭ͘ϭϲϱƚŝŵĞƐůĂƌŐĞƌƚŚĂŶ
WŚĂƐĞ/ƐŽWŚĂƐĞ//ĐŽƐƚĞƐƚŝŵĂƚĞƐĂƌĞ
ĐĂůĐƵůĂƚĞĚĂƚϭ͘ϭϲϱŽĨWŚĂƐĞ/
ĞƐƚŝŵĂƚĞƐ͘
'ƌĂŶĚdŽƚĂůWŚĂƐĞƐ/ĂŶĚ// Ψ ϵϱ͕ϬϭϮ͕ϱϳϳ
EXHIBIT I
Public Improvement Maps
EXHIBIT J
Financial Plan
WATERS' EDGE METROPOLITAN DISTRICTS
1 Development Projection at 40.000 (target) Mills for Debt Service, plus fees -- Service Plan
2050 Series 2029, G.O. Bonds, Pay & Cancel Refg of (proposed) Series 2019 + New Money, Assumes Investment Grade, 100x, 30-yr. Maturity
2049
0
< < < < < < < < Residential > > > > > > > > < Platted/Developed Lots > < < < < < < < < < < Commercial > > > > > > > > > >
Mkt Value As'ed Value* As'ed Value Mkt Value As'ed Value District District District
Biennial @ 7.20% @ 29.00% Biennial @ 29.00% Total D/S Mill Levy D/S Mill Levy S.O. Taxes Total Total
Total Reasses'mt Cumulative of Market Cumulative of Market Total Comm'l Reasses'mt Cumulative of Market Assessed [40.000 Target] Collections Collected Facility Fees Available
YEAR Res'l Units @ 6.0% Market Value (2-yr lag) Market Value (2-yr lag) Sq. Ft. @ 6.0% Market Value (2-yr lag) Value [40.000 Cap] @ 98% @ 6% Collections Revenue
2016 0 0 0 0 0 $0 0
2017 0 0 0 0 0 00
2018 0 0 0 0 4,356,166 0 0 0 0 0 $0 40.000 0 0 0 0
2019 84 44,432,891 0 6,063,733 0 0 0 0 0 40.000 0 0 252,000 252,000
2020 109 2,665,973 110,185,943 0 6,063,733 1,263,288 0 0 0 0 1,263,288 40.000 49,521 2,971 342,500 394,992
2021 109 174,534,762 3,199,168 5,913,733 1,758,483 0 0 0 4,957,651 40.000 194,340 11,660 342,500 548,500
2022 108 10,472,086 249,018,996 7,933,388 5,963,733 1,758,483 0 0 0 0 9,691,870 40.000 379,921 22,795 340,000 742,717
2023 105 309,343,023 12,566,503 5,463,733 1,714,983 20,000 5,520,404 0 14,281,485 40.000 559,834 33,590 332,500 925,924
2024 105 18,560,581 389,434,112 17,929,368 5,963,733 1,729,483 0 331,224 5,851,628 0 19,658,850 40.000 770,627 46,238 332,500 1,149,365
2025 105 452,195,230 22,272,698 4,932,550 1,584,483 20,000 11,595,057 1,600,917 25,458,097 40.000 997,957 59,877 332,500 1,390,335
2026 92 27,131,714 537,119,625 28,039,256 2,582,083 1,729,483 0 695,703 12,290,760 1,696,972 31,465,711 40.000 1,233,456 74,007 284,250 1,591,713
2027 31 559,014,713 32,558,057 0 1,430,439 30,000 21,253,954 3,362,566 37,351,062 40.000 1,464,162 87,850 77,500 1,629,511
2028 0 33,540,883 592,555,596 38,672,613 0 748,804 0 1,275,237 22,529,192 3,564,320 42,985,737 40.000 1,685,041 101,102 0 1,786,143
2029 0 592,555,596 40,249,059 0 0 0 22,529,192 6,163,647 46,412,706 40.000 1,819,378 109,163 0 1,928,541
2030 0 35,553,336 628,108,932 42,664,003 0 0 0 1,351,751 23,880,943 6,533,466 49,197,468 40.000 1,928,541 115,712 0 2,044,253
2031 0 628,108,932 42,664,003 0 0 0 23,880,943 6,533,466 49,197,468 40.000 1,928,541 115,712 0 2,044,253
2032 0 37,686,536 665,795,468 45,223,843 0 0 0 1,432,857 25,313,800 6,925,473 52,149,317 40.000 2,044,253 122,655 0 2,166,908
2033 0 665,795,468 45,223,843 0 0 0 25,313,800 6,925,473 52,149,317 40.000 2,044,253 122,655 0 2,166,908
2034 0 39,947,728 705,743,196 47,937,274 0 0 0 1,518,828 26,832,628 7,341,002 55,278,276 40.000 2,166,908 130,015 0 2,296,923
2035 0 705,743,196 47,937,274 0 0 0 26,832,628 7,341,002 55,278,276 40.000 2,166,908 130,015 0 2,296,923
2036 0 42,344,592 748,087,787 50,813,510 0 0 0 1,609,958 28,442,585 7,781,462 58,594,972 40.000 2,296,923 137,815 0 2,434,738
2037 748,087,787 50,813,510 0 28,442,585 7,781,462 58,594,972 40.000 2,296,923 137,815 2,434,738
2038 44,885,267 792,973,055 53,862,321 0 1,706,555 30,149,140 8,248,350 62,110,670 40.000 2,434,738 146,084 2,580,823
2039 792,973,055 53,862,321 0 30,149,140 8,248,350 62,110,670 40.000 2,434,738 146,084 2,580,823
2040 47,578,383 840,551,438 57,094,060 0 1,808,948 31,958,089 8,743,251 65,837,311 40.000 2,580,823 154,849 2,735,672
2041 840,551,438 57,094,060 0 31,958,089 8,743,251 65,837,311 40.000 2,580,823 154,849 2,735,672
2042 50,433,086 890,984,524 60,519,704 0 1,917,485 33,875,574 9,267,846 69,787,549 40.000 2,735,672 164,140 2,899,812
2043 890,984,524 60,519,704 0 33,875,574 9,267,846 69,787,549 40.000 2,735,672 164,140 2,899,812
2044 53,459,071 944,443,596 64,150,886 0 2,032,534 35,908,109 9,823,916 73,974,802 40.000 2,899,812 173,989 3,073,801
2045 944,443,596 64,150,886 0 35,908,109 9,823,916 73,974,802 40.000 2,899,812 173,989 3,073,801
2046 56,666,616 1,001,110,211 67,999,939 0 2,154,487 38,062,595 10,413,351 78,413,290 40.000 3,073,801 184,428 3,258,229
2047 1,001,110,211 67,999,939 0 38,062,595 10,413,351 78,413,290 40.000 3,073,801 184,428 3,258,229
2048 60,066,613 1,061,176,824 72,079,935 0 2,283,756 40,346,351 11,038,153 83,118,088 40.000 3,258,229 195,494 3,453,723
2049 1,061,176,824 72,079,935 0 40,346,351 11,038,153 83,118,088 40.000 3,258,229 195,494 3,453,723
2050 63,670,609 1,124,847,433 76,404,731 0 2,420,781 42,767,132 11,700,442 88,105,173 40.000 3,453,723 207,223 3,660,946
2051 1,124,847,433 76,404,731 0 42,767,132 11,700,442 88,105,173 40.000 3,453,723 207,223 3,660,946
2052 67,490,846 1,192,338,280 80,989,015 0 2,566,028 45,333,160 12,402,468 93,391,483 40.000 3,660,946 219,657 3,880,603
2053 1,192,338,280 80,989,015 45,333,160 12,402,468 93,391,483 40.000 3,660,946 219,657 3,880,603
2054 71,540,297 1,263,878,576 85,848,356 2,719,990 48,053,149 13,146,616 98,994,972 40.000 3,880,603 232,836 4,113,439
2055 1,263,878,576 85,848,356 48,053,149 13,146,616 98,994,972 40.000 3,880,603 232,836 4,113,439
2056 75,832,715 1,339,711,291 90,999,257 2,883,189 50,936,338 13,935,413 104,934,671 40.000 4,113,439 246,806 4,360,245
2057 1,339,711,291 90,999,257 50,936,338 13,935,413 104,934,671 40.000 4,113,439 246,806 4,360,245
2058 80,382,677 1,420,093,968 96,459,213 3,056,180 53,992,518 14,771,538 111,230,751 40.000 4,360,245 261,615 4,621,860
2059 1,420,093,968 96,459,213 53,992,518 14,771,538 111,230,751 40.000 4,360,245 261,615 4,621,860
______ __________ __________ __________ __________ __________ __________ __________
848 919,909,610 70,000 33,765,492 98,931,551 5,935,893 2,636,250 107,503,694
[*] RAR @ 7.96% thru 2017
7/30/2018 F WEMD Fin Plan 18 NR SP Fin Plan1+2029 IG Refg
Prepared by D.A.Davidson & Co.
Draft: For discussion purposes only.
1
2050
2049
0
YEAR
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
WATERS' EDGE METROPOLITAN DISTRICTS
Development Projection at 40.000 (target) Mills for Debt Service, plus fees -- Service Plan
Series 2029, G.O. Bonds, Pay & Cancel Refg of (proposed) Series 2019 + New Money, Assumes Investment Grade, 100x, 30-yr. Maturity
Series 2019 Ser. 2029
$33,535,000 Par $50,330,000 Par Surplus Senior Senior Cov. of Net DS: Cov. of Net DS:
[Net $24.449 MM] [Net $19.204 MM] Total Annual Release @ Cumulative Debt/ Debt/ @ 40.000 Target @ 40.000 Cap
Net Available Net Debt Net Debt Net Debt Funds on Hand* Surplus 50% D/A Surplus Assessed Act'l Value & 0.0 U.R.A. Mills & 0.0 U.R.A. Mills
for Debt Svc Service Service Service Used as Source to $5,033,000 $5,033,000 Target Ratio Ratio & Sales PIF Revs & Sales PIF Revs
0 n/a
0 n/a 0 n/a n/a 0.0% 0.0%
0 n/a 0 n/a n/a 0.0% 0.0%
1
2050
2049
0
YEAR
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
WATERS' EDGE METROPOLITAN DISTRICTS
Operations Revenue and Expense Projection
Total Total S.O. Tax Total
Assessed Oper'ns Collections Collections Available Total
Value Mill Levy @ 98% @ 98% For O&M Mills
0 10.000 0 0 0 50.000
0 10.000 0 0 0 50.000
1,263,288 10.000 12,380 12,133 24,513 50.000
4,957,651 10.000 48,585 47,613 96,198 50.000
9,691,870 10.000 94,980 93,081 188,061 50.000
14,281,485 10.000 139,959 137,159 277,118 50.000
WATERS' EDGE METROPOLITAN DISTRICTS
Development Summary
Development Projection -- Buildout Plan (updated 7/30/18)
Residential Development Commercial Development
Product Type
Estate Custom Water
Front Courtyard Ranch
Standard Ranch -
2 car
Standard Ranch -
3 Car
Large Active
Adult Patio Townhome Condominium Comm'l Prop.
Base $ ('18) $1,125,000 $1,500,000 $459,333 $536,250 $608,333 $730,000 $408,750 $340,667 $250/sf
Res'l Totals Comm'l Totals
2016 - - - - - - - - - - -
2017 - - - - - - - - - - -
2018 - - - - - - - - - - -
2019 - - 15 24 11 10 24 - 84 - -
2020 5 4 15 24 11 10 24 16 109 - -
2021 5 4 15 24 11 10 24 16 109 - -
2022 5 3 15 24 11 10 24 16 108 - -
2023 5 - 15 24 11 10 24 16 105 20,000 20,000
2024 5 - 15 24 11 10 24 16 105 - -
2025 5 - 15 24 11 10 24 16 105 20,000 20,000
2026 5 - 11 24 11 10 18 13 92 - -
2027 1 - - 18 10 2 - - 31 30,000 30,000
2028 - - - - - - - - - - -
2029 - - - - - - - - - - -
2030 - - - - - - - - - - -
2031 - - - - - - - - - - -
2032 - - - - - - - - - - -
2033 - - - - - - - - - - -
2034 - - - - - - - - - - -
2035 - - - - - - - - - - -
2036 - - - - - - - - - - -
36 11 116 210 98 82 186 109 848 70,000 70,000
MV @ Full Buildout $40,500,000 $16,500,000 $53,282,628 $112,612,500 $59,616,634 $59,860,000 $76,027,500 $37,132,703 $455,531,965 $17,500,000 $17,500,000
(base prices;un-infl.)
notes:
Platted/Dev Lots = 10% MV; one-yr prior
Base MV $ inflated 2% per annum
Res'l Fac. Fees: SFD @ $2,500/SFD, $1,750/SFA
7/30/2018 F WEMD Fin Plan 18 Dev Summ Prepared by D.A. Davidson & Co.
4
Jul 30, 2018 11:09 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-19NRSPF1)
SOURCES AND USES OF FUNDS
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION BONDS, SERIES 2019
40.000 (target) Mills
Non-Rated, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)
[ Preliminary -- for discussion only ]
Dated Date 12/01/2019
Delivery Date 12/01/2019
Sources:
Bond Proceeds:
Par Amount 33,535,000.00
33,535,000.00
Uses:
Project Fund Deposits:
Project Fund 24,449,310.42
Other Fund Deposits:
Capitalized Interest Fund 5,030,250.00
Debt Service Reserve Fund 3,084,739.58
8,114,989.58
Cost of Issuance:
Other Cost of Issuance 300,000.00
Delivery Date Expenses:
Underwriter's Discount 670,700.00
33,535,000.00
5
Jul 30, 2018 11:09 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-19NRSPF1)
BOND SUMMARY STATISTICS
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION BONDS, SERIES 2019
40.000 (target) Mills
Non-Rated, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)
[ Preliminary -- for discussion only ]
Dated Date 12/01/2019
Delivery Date 12/01/2019
First Coupon 06/01/2020
Last Maturity 12/01/2049
Arbitrage Yield 5.000000%
True Interest Cost (TIC) 5.148087%
Net Interest Cost (NIC) 5.000000%
All-In TIC 5.215746%
Average Coupon 5.000000%
Average Life (years) 24.153
Weighted Average Maturity (years) 24.153
Duration of Issue (years) 13.931
Par Amount 33,535,000.00
Bond Proceeds 33,535,000.00
Total Interest 40,498,750.00
Net Interest 41,169,450.00
Bond Years from Dated Date 809,975,000.00
Bond Years from Delivery Date 809,975,000.00
Total Debt Service 74,033,750.00
Maximum Annual Debt Service 6,536,250.00
Average Annual Debt Service 2,467,791.67
Underwriter's Fees (per $1000)
Average Takedown
Other Fee 20.000000
Total Underwriter's Discount 20.000000
Bid Price 98.000000
Average
Par Average Average Maturity PV of 1 bp
Bond Component Value Price Coupon Life Date change
Term Bond due 2049 33,535,000.00 100.000 5.000% 24.153 01/25/2044 51,979.25
33,535,000.00 24.153 51,979.25
All-In Arbitrage
TIC TIC Yield
Par Value 33,535,000.00 33,535,000.00 33,535,000.00
+ Accrued Interest
+ Premium (Discount)
- Underwriter's Discount -670,700.00 -670,700.00
- Cost of Issuance Expense -300,000.00
- Other Amounts
Target Value 32,864,300.00 32,564,300.00 33,535,000.00
Target Date 12/01/2019 12/01/2019 12/01/2019
Yield 5.148087% 5.215746% 5.000000%
6
Jul 30, 2018 11:09 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-19NRSPF1)
BOND DEBT SERVICE
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION BONDS, SERIES 2019
40.000 (target) Mills
Non-Rated, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)
[ Preliminary -- for discussion only ]
Annual
Period Debt Debt
Ending Principal Coupon Interest Service Service
06/01/2020 838,375 838,375
12/01/2020 838,375 838,375 1,676,750
06/01/2021 838,375 838,375
12/01/2021 838,375 838,375 1,676,750
06/01/2022 838,375 838,375
12/01/2022 838,375 838,375 1,676,750
06/01/2023 838,375 838,375
12/01/2023 838,375 838,375 1,676,750
06/01/2024 838,375 838,375
12/01/2024 838,375 838,375 1,676,750
06/01/2025 838,375 838,375
12/01/2025 838,375 838,375 1,676,750
06/01/2026 838,375 838,375
12/01/2026 838,375 838,375 1,676,750
06/01/2027 838,375 838,375
12/01/2027 838,375 838,375 1,676,750
06/01/2028 838,375 838,375
12/01/2028 105,000 5.000% 838,375 943,375 1,781,750
06/01/2029 835,750 835,750
12/01/2029 255,000 5.000% 835,750 1,090,750 1,926,500
06/01/2030 829,375 829,375
12/01/2030 385,000 5.000% 829,375 1,214,375 2,043,750
06/01/2031 819,750 819,750
12/01/2031 400,000 5.000% 819,750 1,219,750 2,039,500
06/01/2032 809,750 809,750
12/01/2032 545,000 5.000% 809,750 1,354,750 2,164,500
06/01/2033 796,125 796,125
12/01/2033 570,000 5.000% 796,125 1,366,125 2,162,250
06/01/2034 781,875 781,875
12/01/2034 730,000 5.000% 781,875 1,511,875 2,293,750
06/01/2035 763,625 763,625
12/01/2035 765,000 5.000% 763,625 1,528,625 2,292,250
06/01/2036 744,500 744,500
12/01/2036 945,000 5.000% 744,500 1,689,500 2,434,000
06/01/2037 720,875 720,875
12/01/2037 990,000 5.000% 720,875 1,710,875 2,431,750
06/01/2038 696,125 696,125
12/01/2038 1,185,000 5.000% 696,125 1,881,125 2,577,250
06/01/2039 666,500 666,500
12/01/2039 1,245,000 5.000% 666,500 1,911,500 2,578,000
06/01/2040 635,375 635,375
12/01/2040 1,460,000 5.000% 635,375 2,095,375 2,730,750
06/01/2041 598,875 598,875
12/01/2041 1,535,000 5.000% 598,875 2,133,875 2,732,750
06/01/2042 560,500 560,500
12/01/2042 1,775,000 5.000% 560,500 2,335,500 2,896,000
06/01/2043 516,125 516,125
12/01/2043 1,865,000 5.000% 516,125 2,381,125 2,897,250
06/01/2044 469,500 469,500
Jul 30, 2018 11:09 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-19NRSPF1)
NET DEBT SERVICE
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION BONDS, SERIES 2019
40.000 (target) Mills
Non-Rated, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)
[ Preliminary -- for discussion only ]
Capitalized
Period Total Debt Service Interest Net
Ending Principal Interest Debt Service Reserve Fund Fund Debt Service
12/01/2020 1,676,750 1,676,750 1,676,750
12/01/2021 1,676,750 1,676,750 1,676,750
12/01/2022 1,676,750 1,676,750 1,676,750
12/01/2023 1,676,750 1,676,750 1,676,750.00
12/01/2024 1,676,750 1,676,750 1,676,750.00
12/01/2025 1,676,750 1,676,750 1,676,750.00
12/01/2026 1,676,750 1,676,750 1,676,750.00
12/01/2027 1,676,750 1,676,750 1,676,750.00
12/01/2028 105,000 1,676,750 1,781,750 1,781,750.00
12/01/2029 255,000 1,671,500 1,926,500 1,926,500.00
12/01/2030 385,000 1,658,750 2,043,750 2,043,750.00
12/01/2031 400,000 1,639,500 2,039,500 2,039,500.00
12/01/2032 545,000 1,619,500 2,164,500 2,164,500.00
12/01/2033 570,000 1,592,250 2,162,250 2,162,250.00
12/01/2034 730,000 1,563,750 2,293,750 2,293,750.00
12/01/2035 765,000 1,527,250 2,292,250 2,292,250.00
12/01/2036 945,000 1,489,000 2,434,000 2,434,000.00
12/01/2037 990,000 1,441,750 2,431,750 2,431,750.00
12/01/2038 1,185,000 1,392,250 2,577,250 2,577,250.00
12/01/2039 1,245,000 1,333,000 2,578,000 2,578,000.00
12/01/2040 1,460,000 1,270,750 2,730,750 2,730,750.00
12/01/2041 1,535,000 1,197,750 2,732,750 2,732,750.00
12/01/2042 1,775,000 1,121,000 2,896,000 2,896,000.00
12/01/2043 1,865,000 1,032,250 2,897,250 2,897,250.00
12/01/2044 2,130,000 939,000 3,069,000 3,069,000.00
12/01/2045 2,240,000 832,500 3,072,500 3,072,500.00
12/01/2046 2,535,000 720,500 3,255,500 3,255,500.00
12/01/2047 2,660,000 593,750 3,253,750 3,253,750.00
12/01/2048 2,990,000 460,750 3,450,750 3,450,750.00
12/01/2049 6,225,000 311,250 6,536,250 3,084,739.58 3,451,510.42
33,535,000 40,498,750 74,033,750 3,084,739.58 5,030,250 65,918,760.42
8
Jul 30, 2018 11:09 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-19NRSPF1)
BOND SOLUTION
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION BONDS, SERIES 2019
40.000 (target) Mills
Non-Rated, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)
[ Preliminary -- for discussion only ]
Period Proposed Proposed Debt Service Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Adjustments Debt Service Constraints Revenues Coverage
12/01/2020 1,676,750 -1,676,750 52,492 52,492
12/01/2021 1,676,750 -1,676,750 206,000 206,000
12/01/2022 1,676,750 -1,676,750 402,717 402,717
12/01/2023 1,676,750 1,676,750 593,424 -1,083,326 35.39134%
12/01/2024 1,676,750 1,676,750 816,865 -859,885 48.71713%
12/01/2025 1,676,750 1,676,750 1,057,835 -618,915 63.08841%
12/01/2026 1,676,750 1,676,750 1,307,463 -369,287 77.97604%
12/01/2027 1,676,750 1,676,750 1,552,011 -124,739 92.56069%
12/01/2028 105,000 1,781,750 1,781,750 1,786,143 4,393 100.24658%
12/01/2029 255,000 1,926,500 1,926,500 1,928,541 2,041 100.10593%
12/01/2030 385,000 2,043,750 2,043,750 2,044,253 503 100.02462%
12/01/2031 400,000 2,039,500 2,039,500 2,044,253 4,753 100.23306%
12/01/2032 545,000 2,164,500 2,164,500 2,166,908 2,408 100.11127%
12/01/2033 570,000 2,162,250 2,162,250 2,166,908 4,658 100.21544%
12/01/2034 730,000 2,293,750 2,293,750 2,296,923 3,173 100.13833%
12/01/2035 765,000 2,292,250 2,292,250 2,296,923 4,673 100.20386%
12/01/2036 945,000 2,434,000 2,434,000 2,434,738 738 100.03033%
12/01/2037 990,000 2,431,750 2,431,750 2,434,738 2,988 100.12289%
12/01/2038 1,185,000 2,577,250 2,577,250 2,580,823 3,573 100.13862%
12/01/2039 1,245,000 2,578,000 2,578,000 2,580,823 2,823 100.10949%
12/01/2040 1,460,000 2,730,750 2,730,750 2,735,672 4,922 100.18024%
12/01/2041 1,535,000 2,732,750 2,732,750 2,735,672 2,922 100.10692%
12/01/2042 1,775,000 2,896,000 2,896,000 2,899,812 3,812 100.13164%
12/01/2043 1,865,000 2,897,250 2,897,250 2,899,812 2,562 100.08844%
12/01/2044 2,130,000 3,069,000 3,069,000 3,073,801 4,801 100.15643%
12/01/2045 2,240,000 3,072,500 3,072,500 3,073,801 1,301 100.04234%
12/01/2046 2,535,000 3,255,500 3,255,500 3,258,229 2,729 100.08383%
12/01/2047 2,660,000 3,253,750 3,253,750 3,258,229 4,479 100.13766%
12/01/2048 2,990,000 3,450,750 3,450,750 3,453,723 2,973 100.08615%
12/01/2049 6,225,000 6,536,250 -3,084,740 3,451,510 3,453,723 2,212 100.06410%
33,535,000 74,033,750 -8,114,990 65,918,760 63,593,256 -2,325,504
9
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
SOURCES AND USES OF FUNDS
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Dated Date 12/01/2029
Delivery Date 12/01/2029
Sources:
Bond Proceeds:
Par Amount 50,330,000.00
Other Sources of Funds:
Funds on Hand* 245,000.00
Series 2019 - DSRF 3,084,740.00
3,329,740.00
53,659,740.00
Uses:
Project Fund Deposits:
Project Fund 19,203,715.00
Refunding Escrow Deposits:
Cash Deposit* 34,004,375.00
Cost of Issuance:
Other Cost of Issuance 200,000.00
Delivery Date Expenses:
Underwriter's Discount 251,650.00
53,659,740.00
[*] Estimated balances, (tbd).
10
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
BOND SUMMARY STATISTICS
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Dated Date 12/01/2029
Delivery Date 12/01/2029
First Coupon 06/01/2030
Last Maturity 12/01/2059
Arbitrage Yield 4.000000%
True Interest Cost (TIC) 4.035174%
Net Interest Cost (NIC) 4.000000%
All-In TIC 4.063305%
Average Coupon 4.000000%
Average Life (years) 22.210
Weighted Average Maturity (years) 22.210
Duration of Issue (years) 14.524
Par Amount 50,330,000.00
Bond Proceeds 50,330,000.00
Total Interest 44,712,600.00
Net Interest 44,964,250.00
Bond Years from Dated Date 1,117,815,000.00
Bond Years from Delivery Date 1,117,815,000.00
Total Debt Service 95,042,600.00
Maximum Annual Debt Service 4,618,400.00
Average Annual Debt Service 3,168,086.67
Underwriter's Fees (per $1000)
Average Takedown
Other Fee 5.000000
Total Underwriter's Discount 5.000000
Bid Price 99.500000
Average
Par Average Average Maturity PV of 1 bp
Bond Component Value Price Coupon Life Date change
Term Bond due 2059 50,330,000.00 100.000 4.000% 22.210 02/16/2052 87,574.20
50,330,000.00 22.210 87,574.20
All-In Arbitrage
TIC TIC Yield
Par Value 50,330,000.00 50,330,000.00 50,330,000.00
+ Accrued Interest
+ Premium (Discount)
- Underwriter's Discount -251,650.00 -251,650.00
- Cost of Issuance Expense -200,000.00
- Other Amounts
Target Value 50,078,350.00 49,878,350.00 50,330,000.00
Target Date 12/01/2029 12/01/2029 12/01/2029
Yield 4.035174% 4.063305% 4.000000%
11
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
BOND DEBT SERVICE
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Annual
Period Debt Debt
Ending Principal Coupon Interest Service Service
06/01/2030 1,006,600 1,006,600
12/01/2030 1,006,600 1,006,600 2,013,200
06/01/2031 1,006,600 1,006,600
12/01/2031 30,000 4.000% 1,006,600 1,036,600 2,043,200
06/01/2032 1,006,000 1,006,000
12/01/2032 150,000 4.000% 1,006,000 1,156,000 2,162,000
06/01/2033 1,003,000 1,003,000
12/01/2033 160,000 4.000% 1,003,000 1,163,000 2,166,000
06/01/2034 999,800 999,800
12/01/2034 295,000 4.000% 999,800 1,294,800 2,294,600
06/01/2035 993,900 993,900
12/01/2035 305,000 4.000% 993,900 1,298,900 2,292,800
06/01/2036 987,800 987,800
12/01/2036 455,000 4.000% 987,800 1,442,800 2,430,600
06/01/2037 978,700 978,700
12/01/2037 475,000 4.000% 978,700 1,453,700 2,432,400
06/01/2038 969,200 969,200
12/01/2038 640,000 4.000% 969,200 1,609,200 2,578,400
06/01/2039 956,400 956,400
12/01/2039 665,000 4.000% 956,400 1,621,400 2,577,800
06/01/2040 943,100 943,100
12/01/2040 845,000 4.000% 943,100 1,788,100 2,731,200
06/01/2041 926,200 926,200
12/01/2041 880,000 4.000% 926,200 1,806,200 2,732,400
06/01/2042 908,600 908,600
12/01/2042 1,080,000 4.000% 908,600 1,988,600 2,897,200
06/01/2043 887,000 887,000
12/01/2043 1,125,000 4.000% 887,000 2,012,000 2,899,000
06/01/2044 864,500 864,500
12/01/2044 1,340,000 4.000% 864,500 2,204,500 3,069,000
06/01/2045 837,700 837,700
12/01/2045 1,395,000 4.000% 837,700 2,232,700 3,070,400
06/01/2046 809,800 809,800
12/01/2046 1,635,000 4.000% 809,800 2,444,800 3,254,600
06/01/2047 777,100 777,100
12/01/2047 1,700,000 4.000% 777,100 2,477,100 3,254,200
06/01/2048 743,100 743,100
12/01/2048 1,965,000 4.000% 743,100 2,708,100 3,451,200
06/01/2049 703,800 703,800
12/01/2049 2,045,000 4.000% 703,800 2,748,800 3,452,600
06/01/2050 662,900 662,900
12/01/2050 2,330,000 4.000% 662,900 2,992,900 3,655,800
06/01/2051 616,300 616,300
12/01/2051 2,425,000 4.000% 616,300 3,041,300 3,657,600
06/01/2052 567,800 567,800
12/01/2052 2,745,000 4.000% 567,800 3,312,800 3,880,600
06/01/2053 512,900 512,900
12/01/2053 2,850,000 4.000% 512,900 3,362,900 3,875,800
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
NET DEBT SERVICE
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Period Total Net
Ending Principal Interest Debt Service Debt Service
12/01/2030 2,013,200 2,013,200 2,013,200
12/01/2031 30,000 2,013,200 2,043,200 2,043,200
12/01/2032 150,000 2,012,000 2,162,000 2,162,000
12/01/2033 160,000 2,006,000 2,166,000 2,166,000
12/01/2034 295,000 1,999,600 2,294,600 2,294,600
12/01/2035 305,000 1,987,800 2,292,800 2,292,800
12/01/2036 455,000 1,975,600 2,430,600 2,430,600
12/01/2037 475,000 1,957,400 2,432,400 2,432,400
12/01/2038 640,000 1,938,400 2,578,400 2,578,400
12/01/2039 665,000 1,912,800 2,577,800 2,577,800
12/01/2040 845,000 1,886,200 2,731,200 2,731,200
12/01/2041 880,000 1,852,400 2,732,400 2,732,400
12/01/2042 1,080,000 1,817,200 2,897,200 2,897,200
12/01/2043 1,125,000 1,774,000 2,899,000 2,899,000
12/01/2044 1,340,000 1,729,000 3,069,000 3,069,000
12/01/2045 1,395,000 1,675,400 3,070,400 3,070,400
12/01/2046 1,635,000 1,619,600 3,254,600 3,254,600
12/01/2047 1,700,000 1,554,200 3,254,200 3,254,200
12/01/2048 1,965,000 1,486,200 3,451,200 3,451,200
12/01/2049 2,045,000 1,407,600 3,452,600 3,452,600
12/01/2050 2,330,000 1,325,800 3,655,800 3,655,800
12/01/2051 2,425,000 1,232,600 3,657,600 3,657,600
12/01/2052 2,745,000 1,135,600 3,880,600 3,880,600
12/01/2053 2,850,000 1,025,800 3,875,800 3,875,800
12/01/2054 3,200,000 911,800 4,111,800 4,111,800
12/01/2055 3,325,000 783,800 4,108,800 4,108,800
12/01/2056 3,705,000 650,800 4,355,800 4,355,800
12/01/2057 3,855,000 502,600 4,357,600 4,357,600
12/01/2058 4,270,000 348,400 4,618,400 4,618,400
12/01/2059 4,440,000 177,600 4,617,600 4,617,600
50,330,000 44,712,600 95,042,600 95,042,600
13
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
SUMMARY OF BONDS REFUNDED
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
7/30/18: Ser 19 NR SP, 5.00%, 100x, 40mls, FG+6% BiRE:
TERM49 12/01/2030 5.000% 385,000.00 12/01/2029 100.000
12/01/2031 5.000% 400,000.00 12/01/2029 100.000
12/01/2032 5.000% 545,000.00 12/01/2029 100.000
12/01/2033 5.000% 570,000.00 12/01/2029 100.000
12/01/2034 5.000% 730,000.00 12/01/2029 100.000
12/01/2035 5.000% 765,000.00 12/01/2029 100.000
12/01/2036 5.000% 945,000.00 12/01/2029 100.000
12/01/2037 5.000% 990,000.00 12/01/2029 100.000
12/01/2038 5.000% 1,185,000.00 12/01/2029 100.000
12/01/2039 5.000% 1,245,000.00 12/01/2029 100.000
12/01/2040 5.000% 1,460,000.00 12/01/2029 100.000
12/01/2041 5.000% 1,535,000.00 12/01/2029 100.000
12/01/2042 5.000% 1,775,000.00 12/01/2029 100.000
12/01/2043 5.000% 1,865,000.00 12/01/2029 100.000
12/01/2044 5.000% 2,130,000.00 12/01/2029 100.000
12/01/2045 5.000% 2,240,000.00 12/01/2029 100.000
12/01/2046 5.000% 2,535,000.00 12/01/2029 100.000
12/01/2047 5.000% 2,660,000.00 12/01/2029 100.000
12/01/2048 5.000% 2,990,000.00 12/01/2029 100.000
12/01/2049 5.000% 6,225,000.00 12/01/2029 100.000
33,175,000.00
14
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
ESCROW REQUIREMENTS
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Dated Date 12/01/2029
Delivery Date 12/01/2029
7/30/18: Ser 19 NR SP, 5.00%, 100x, 40mls, FG+6% BiRE
Period Principal
Ending Interest Redeemed Total
12/01/2029 829,375.00 33,175,000.00 34,004,375.00
829,375.00 33,175,000.00 34,004,375.00
15
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
PRIOR BOND DEBT SERVICE
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Annual
Period Debt Debt
Ending Principal Coupon Interest Service Service
12/01/2029 829,375 829,375
06/01/2030 829,375 829,375
12/01/2030 385,000 5.000% 829,375 1,214,375 2,873,125
06/01/2031 819,750 819,750
12/01/2031 400,000 5.000% 819,750 1,219,750 2,039,500
06/01/2032 809,750 809,750
12/01/2032 545,000 5.000% 809,750 1,354,750 2,164,500
06/01/2033 796,125 796,125
12/01/2033 570,000 5.000% 796,125 1,366,125 2,162,250
06/01/2034 781,875 781,875
12/01/2034 730,000 5.000% 781,875 1,511,875 2,293,750
06/01/2035 763,625 763,625
12/01/2035 765,000 5.000% 763,625 1,528,625 2,292,250
06/01/2036 744,500 744,500
12/01/2036 945,000 5.000% 744,500 1,689,500 2,434,000
06/01/2037 720,875 720,875
12/01/2037 990,000 5.000% 720,875 1,710,875 2,431,750
06/01/2038 696,125 696,125
12/01/2038 1,185,000 5.000% 696,125 1,881,125 2,577,250
06/01/2039 666,500 666,500
12/01/2039 1,245,000 5.000% 666,500 1,911,500 2,578,000
06/01/2040 635,375 635,375
12/01/2040 1,460,000 5.000% 635,375 2,095,375 2,730,750
06/01/2041 598,875 598,875
12/01/2041 1,535,000 5.000% 598,875 2,133,875 2,732,750
06/01/2042 560,500 560,500
12/01/2042 1,775,000 5.000% 560,500 2,335,500 2,896,000
06/01/2043 516,125 516,125
12/01/2043 1,865,000 5.000% 516,125 2,381,125 2,897,250
06/01/2044 469,500 469,500
12/01/2044 2,130,000 5.000% 469,500 2,599,500 3,069,000
06/01/2045 416,250 416,250
12/01/2045 2,240,000 5.000% 416,250 2,656,250 3,072,500
06/01/2046 360,250 360,250
12/01/2046 2,535,000 5.000% 360,250 2,895,250 3,255,500
06/01/2047 296,875 296,875
12/01/2047 2,660,000 5.000% 296,875 2,956,875 3,253,750
06/01/2048 230,375 230,375
12/01/2048 2,990,000 5.000% 230,375 3,220,375 3,450,750
06/01/2049 155,625 155,625
12/01/2049 6,225,000 5.000% 155,625 6,380,625 6,536,250
33,175,000 24,565,875 57,740,875 57,740,875
16
Jul 30, 2018 11:12 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Water's Edge MD 17:FJUL3018-29IG19F1,29IG19F1)
BOND SOLUTION
WATER'S EDGE METROPOLITAN DISTRICT
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2029
Pay & Cancel Refunding of (proposed) Series 2019 + New Money
40.000 (target) Mills
Assumes Investment Grade, 100x, 30-yr. Maturity
(SERVICE PLAN: Full Growth + 6% Bi-Reassessment Projections)
[ Preliminary -- for discsussion only ]
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
12/01/2030 2,013,200 2,013,200 2,044,253 31,053 101.54248%
12/01/2031 30,000 2,043,200 2,043,200 2,044,253 1,053 100.05155%
12/01/2032 150,000 2,162,000 2,162,000 2,166,908 4,908 100.22703%
12/01/2033 160,000 2,166,000 2,166,000 2,166,908 908 100.04194%
12/01/2034 295,000 2,294,600 2,294,600 2,296,923 2,323 100.10123%
12/01/2035 305,000 2,292,800 2,292,800 2,296,923 4,123 100.17982%
12/01/2036 455,000 2,430,600 2,430,600 2,434,738 4,138 100.17026%
12/01/2037 475,000 2,432,400 2,432,400 2,434,738 2,338 100.09613%
12/01/2038 640,000 2,578,400 2,578,400 2,580,823 2,423 100.09396%
12/01/2039 665,000 2,577,800 2,577,800 2,580,823 3,023 100.11725%
12/01/2040 845,000 2,731,200 2,731,200 2,735,672 4,472 100.16373%
12/01/2041 880,000 2,732,400 2,732,400 2,735,672 3,272 100.11975%
12/01/2042 1,080,000 2,897,200 2,897,200 2,899,812 2,612 100.09016%
12/01/2043 1,125,000 2,899,000 2,899,000 2,899,812 812 100.02802%
12/01/2044 1,340,000 3,069,000 3,069,000 3,073,801 4,801 100.15643%
12/01/2045 1,395,000 3,070,400 3,070,400 3,073,801 3,401 100.11077%
12/01/2046 1,635,000 3,254,600 3,254,600 3,258,229 3,629 100.11150%
12/01/2047 1,700,000 3,254,200 3,254,200 3,258,229 4,029 100.12381%
12/01/2048 1,965,000 3,451,200 3,451,200 3,453,723 2,523 100.07310%
12/01/2049 2,045,000 3,452,600 3,452,600 3,453,723 1,123 100.03252%
12/01/2050 2,330,000 3,655,800 3,655,800 3,660,946 5,146 100.14077%
12/01/2051 2,425,000 3,657,600 3,657,600 3,660,946 3,346 100.09148%
12/01/2052 2,745,000 3,880,600 3,880,600 3,880,603 3 100.00008%
12/01/2053 2,850,000 3,875,800 3,875,800 3,880,603 4,803 100.12392%
12/01/2054 3,200,000 4,111,800 4,111,800 4,113,439 1,639 100.03986%
12/01/2055 3,325,000 4,108,800 4,108,800 4,113,439 4,639 100.11291%
12/01/2056 3,705,000 4,355,800 4,355,800 4,360,245 4,445 100.10206%
12/01/2057 3,855,000 4,357,600 4,357,600 4,360,245 2,645 100.06071%
12/01/2058 4,270,000 4,618,400 4,618,400 4,621,860 3,460 100.07492%
12/01/2059 4,440,000 4,617,600 4,617,600 4,621,860 4,260 100.09226%
50,330,000 95,042,600 95,042,600 95,163,952 121,352
17
EXHIBIT K
Public Benefits
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ĚĚŝƚŝŽŶĂůůLJ͕tĂƚĞƌƐ͛ ĚŐĞĐŽŵŵŝƚƐƚŽƉƌŽǀŝĚŝŶŐ͕ŝŶŽƵƌƐĞĐŽŶĚƉŚĂƐĞ;tĂƚĞƌƐ͛ ĚŐĞ
ĂƐƚͿ͕ƚŚĂƚĂƚůĞĂƐƚϭϬйŽĨƚŚĞŚŽƵƐŝŶŐƵŶŝƚƐŝŶƚŚĂƚƉŚĂƐĞǁŝůůďĞĂĨĨŽƌĚĂďůĞĚĞĨŝŶĞĚĂƚ
ϴϬйŽĨĂƌĞĂŵĞĚŝĂŶŝŶĐŽŵĞ͘^ŽŵĞƵŶŝƚƐŵĂLJŵĞĞƚƚŚĂƚƐƚĂŶĚĂƌĚŝŶŽƵƌĨŝƌƐƚƉŚĂƐĞ
ŝŶĐůƵĚŝŶŐĂƵdžŝůŝĂƌLJĚǁĞůůŝŶŐƵŶŝƚƐƉůĂŶŶĞĚŝŶŽƵƌĐŽƵƌƚLJĂƌĚƉƌŽĚƵĐƚ͘
>ŝŬĞůLJǁĞǁŝůůƵƐĞƚŚĞůĂŶĚƚƌƵƐƚŽƌůĂŶĚďĂŶŬŵŽĚĞůǁŚŝůĞĚĞƚĞƌŵŝŶŝŶŐŝĨ>ŽǁͲ/ŶĐŽŵĞ
,ŽƵƐŝŶŐdĂdžƌĞĚŝƚƐĐĂŶĂƐƐŝƐƚǁŝƚŚĂĨĨŽƌĚĂďůĞƌĞŶƚĂůƵŶŝƚƐ͘
&ŽƌϭϬйŽĨWŚĂƐĞ//͛ƐĞƐƚŝŵĂƚĞĚϰϳϭůŽƚƐΛΨϳ͕Ϯϱϰ;ƚĂŬĞŶĨƌŽŵdŚƌŝǀĞ͛ƐĐŽƐƚĞƐƚŝŵĂƚĞ
ĨƌŽŵ^ƚĂƉůĞƚŽŶͿсΨϯ͕ϰϭϳ͕ϭϬϱ
^ŝŐŶŝĨŝĐĂŶƚZĞĚƵĐƚŝŽŶŝŶWŽƚĂďůĞtĂƚĞƌ͗
EŽŶͲƉŽƚĂďůĞǁĂƚĞƌƐLJƐƚĞŵ͗dŚŝƐƐLJƐƚĞŵŝƐĞƐƐĞŶƚŝĂůƚŽďĞĂďůĞƚŽĂĨĨŽƌĚĂďůLJĐƌĞĂƚĞĂŶĚ
ŵĂŝŶƚĂŝŶƚŚĞƉƌŽũĞĐƚ͛ƐĞdžƉĂŶƐŝǀĞŶĂƚƵƌĂůĂƌĞĂƐ͘dŚĞŶŽŶͲƉŽƚĂďůĞƐLJƐƚĞŵǁŝůůďĞ
ŽƉĞƌĂƚĞĚďLJƚŚĞŵĞƚƌŽƉŽůŝƚĂŶĚŝƐƚƌŝĐƚƐĂŶĚƐƵƉƉůLJĂůůŝƌƌŝŐĂƚŝŽŶǁĂƚĞƌƚŽƚŚĞŶĂƚƵƌĂů
ĂƌĞĂƐĂŶĚƉƌŝǀĂƚĞůŽƚƐ͘ŽƐƚƚŽƚŚĞĐŽŶƐƵŵĞƌǁŝůůďĞůŽǁĞƌĂŶĚǁĂƚĞƌƐĂǀŝŶŐƐǁŝůůďĞ
ŝŶĐƌĞĂƐĞĚďĞĐĂƵƐĞŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŵĂŶĂŐĞŵĞŶƚ͕ŝŶĐůƵĚŝŶŐŽŶƉƌŝǀĂƚĞůŽƚƐ͘
KƵƌŶŽŶͲƉŽƚĂďůĞǁĂƚĞƌƐLJƐƚĞŵ͕ǁŚŝĐŚƌĞƋƵŝƌĞƐŵĂŶĂŐĞŵĞŶƚďLJĂĚŝƐƚƌŝĐƚ͕ŶŽƚĂŶ,K͕ǁŝůů
ƌĞĚƵĐĞǁĂƚĞƌĐŽŶƐƵŵƉƚŝŽŶďLJϱϱйďĞŶĞĨŝƚŝŶŐƚŚĞƌĞƐŝĚĞŶƚƐďLJůŽǁĞƌŽƉĞƌĂƚŝŶŐĐŽƐƚƐĂŶĚ
ďĞŶĞĨŝƚŝŶŐƌĞĐƌĞĂƚŝŽŶĂŶĚĂŐƌŝĐƵůƚƵƌĞŝŶEŽƌƚŚĞƌŶŽůŽƌĂĚŽ͘dŚĞƐLJƐƚĞŵǁŝůůĂůƐŽĂůůŽǁůŝƋƵĞĨŝĞĚ
ĨĞƌƚŝůŝnjĂƚŝŽŶǁŚŝĐŚ͕ǁŚŝůĞƐĂǀŝŶŐƌĞƐŝĚĞŶƚƐ͛ŵŽŶĞLJ͕ĂůƐŽƌĞĚƵĐĞƐƚŚĞƌƵŶŽĨĨŽĨĨĞƌƚŝůŝnjĞƌƐƚŽŽƵƌ
ŶĂƚƵƌĂůĚƌĂŝŶĂŐĞƐĂŶĚƐƚƌĞĂŵƐ͘
ŶŚĂŶĐĞĚĂŶĚ džƉĂŶĚĞĚKƉĞŶ^ƉĂĐĞ͕WĂƌŬƐĂŶĚdƌĂŝůƐ͗
ŶŚĂŶĐĞĚĂŶĚ džƉĂŶĚĞĚƚƌĂŝůƐLJƐƚĞŵĂŶĚŶĂƚƵƌĂůĂƌĞĂƐ͗WƌŽŵŽƚĞƐǁĂůŬŝŶŐͬĐLJĐůŝŶŐĂŶĚ
ƐĐŽŽƚĞƌƵƐĞǁŚŝůĞĚŝƐĐŽƵƌĂŐŝŶŐǀĞŚŝĐůĞƵƐĞ͖ŐƌĞĞŶƐƉĂĐĞƐĂŶĚĞŶŚĂŶĐĞĚǀĞŐĞƚĂƚŝŽŶ
ƉƌŽŵŽƚĞĐĂƌďŽŶƐĞƋƵĞƐƚƌĂƚŝŽŶ͘tĂƚĞƌƐ͛ ĚŐĞtĞƐƚŝƐĚĞƐŝŐŶĞĚǁŝƚŚŶĞĂƌůLJϰϬйŽƉĞŶ
ƐƉĂĐĞ͕ĚŽƵďůĞĐŽŵƉĂƌĂďůĞƐƵďĚŝǀŝƐŝŽŶƐ͘
tĂƚĞƌƐ͛ ĚŐĞ͕ǁŝƚŚŽƉĞŶƐƉĂĐĞĂĚũĂĐĞŶƚƚŽŶĞĂƌůLJĞǀĞƌLJůŽƚĂŶĚĂŶŝŶƚĞƌĐŽŶŶĞĐƚĞĚƚƌĂŝů
ƐLJƐƚĞŵ͕ǁŝůůďĞĂĨƌŝĞŶĚůLJƉůĂĐĞĨŽƌƉĞĚĞƐƚƌŝĂŶƐ͕ďŝĐLJĐůŝƐƚƐĂŶĚĞǀĞŶĞůĞĐƚƌŝĐƐĐŽŽƚĞƌƐ͘dŚĞ
ŵŝdžĞĚͲƵƐĞĐŽŵŵƵŶŝƚLJĚĞƐŝŐŶ͕ǁŝƚŚƐŝŐŶŝĨŝĐĂŶƚƉƵďůŝĐƐƉĂĐĞƐ͕ŵƵůƚŝƉůĞŚŽƵƐŝŶŐƚLJƉĞƐ͕ŽŶͲ
ƐŝƚĞƌĞĐƌĞĂƚŝŽŶĂŶĚĂƐŵĂůůĐŽŵŵĞƌĐŝĂůĐĞŶƚĞƌĞdžĞŵƉůŝĨŝĞƐƐŵĂƌƚŐƌŽǁƚŚ͘
ŶŚĂŶĐĞĚ>ĂŶĚƐĐĂƉŝŶŐ͗sĞŐĞƚĂƚŝǀĞůĂŶĚƐĐĂƉĞǁŝůůďĞĨŽĐƵƐĞĚŽŶĐƌĞĂƚŝŶŐĂƋƵĂůŝƚLJ
ĞŶǀŝƌŽŶŵĞŶƚĨŽƌŚƵŵĂŶƐĂŶĚǁŝůĚůŝĨĞǁŝƚŚŶĂƚŝǀĞƐƉĞĐŝĞƐ͖ŽŶŐŽŝŶŐƐƚĞǁĂƌĚƐŚŝƉǁŝůůďĞ
ƉĞƌĨŽƌŵĞĚďLJƚŚĞƉƌŽƉŽƐĞĚŵĞƚƌŽƉŽůŝƚĂŶĚŝƐƚƌŝĐƚƐ͘dŚĞƌĞǁŝůůďĞĞĚŝďůĞƉůĂŶƚƐ;ĨŽƌďŽƚŚ
ŚƵŵĂŶƐĂŶĚǁŝůĚůŝĨĞͿƚŚƌŽƵŐŚŽƵƚƚŚĞĐŽŵŵƵŶŝƚLJ͘tŝƚŚŝŶƚŚĞĚŽƵďůĞŽƉĞŶƐƉĂĐĞ͕
ƉůĂŶƚŝŶŐƐĂŶĚƐŝƌĞĨƵƌŶŝƐŚŝŶŐƐĂůƐŽƐƵďƐƚĂŶƚŝĂůůLJĞdžĐĞĞĚƚŚĞŶŽƌŵ͘dŚĞƐĞƉůĂŶƚŝŶŐĚĞƐŝŐŶƐ
ĂƌĞŝŶƚŚĞĂƉƉƌŽǀĞĚƐŝƚĞƉůĂŶƐĂŶĚƐƵďũĞĐƚƚŽƚŚĞĨƵůůLJĞdžĞĐƵƚĞĚĞǀĞůŽƉŵĞŶƚ
ŐƌĞĞŵĞŶƚ͘
ZĞŚĂďŝůŝƚĂƚŝŽŶŽĨƚŚĞtŝŶĚƐŽƌηϴŝƚĐŚǁŝůůĨĞĂƚƵƌĞ͗
ƌĞĂƚŝŽŶŽĨǁĞƚůĂŶĚƐƚŽŝŵƉƌŽǀĞǁĂƚĞƌƋƵĂůŝƚLJĂŶĚƉƌŽǀŝĚĞŚĂďŝƚĂƚĨŽƌǁŝůĚůŝĨĞ
,ŝŐŚƋƵĂůŝƚLJŶĂƚƵƌĂůƐƉĂĐĞƐ
dƌĂŝůƐƚŽůŝŶŬƚŚĞƌĞŐŝŽŶ
dƌĂŶƐĨŽƌŵĂƚŝŽŶŽĨĂŶĞLJĞƐŽƌĞƚŽĂŶĂƚƚƌĂĐƚŝǀĞĂŶĚƵƐĞĨƵůĐŽŵŵƵŶŝƚLJĂŵĞŶŝƚLJ
^ƚŽƌŵǁĂƚĞƌƌĞƚĞŶƚŝŽŶĂƐĂŶĂĞƐƚŚĞƚŝĐĂŵĞŶŝƚLJ
ĞůĂLJŝŶŐƐƐŝƐƚĞĚ>ŝǀŝŶŐ͗
ĞůĂLJŝŶŐŵŽǀŝŶŐƚŽŝŶĚĞƉĞŶĚĞŶƚƐĞŶŝŽƌůŝǀŝŶŐŽƌĂƐƐŝƐƚĞĚůŝǀŝŶŐƚŚƌŽƵŐŚĐŽŵŵƵŶŝƚLJ
ĚĞƐŝŐŶ͕ŚŽƵƐĞĚĞƐŝŐŶ͕ĂǁĂůŬĂďůĞĐŽŵŵƵŶŝƚLJ͕ĐŽŵƉĞůůŝŶŐƉƵďůŝĐƐƉĂĐĞƐŽŶƐŝƚĞ͕ĂŶĚ
ŚĞůƉĨƵůƐĞƌǀŝĐĞƐƐƵĐŚĂƐƐŶŽǁƌĞŵŽǀĂů͕ŝƌƌŝŐĂƚŝŽŶĐŽŶƚƌŽůĂŶĚĨƌŽŶƚLJĂƌĚůĂŶĚƐĐĂƉĞ
ŵĂŝŶƚĞŶĂŶĐĞ͘ƐƐƵŵŝŶŐĂĐŽƐƚŽĨΨϲ͕ϬϬϬͬŵŽ͘ĨŽƌŝŶĚĞƉĞŶĚĞŶƚͬĂƐƐŝƐƚĞĚůŝǀŝŶŐǀƐ͘
ΨϮ͕ϱϬϬͬŵŽ͘ƚŽƐƚĂLJŝŶƚŚĞŚŽƵƐĞ͗ΨϲϬϬϬͲΨϮϱϬϬĨŽƌϭϬйŽĨƌĞƐŝĚĞŶƚƐĨŽƌϭϮƚŽϮϰ
ŵŽŶƚŚƐсΨϯ͕ϱϲϭ͕ϬϬϬƚŽΨϳ͕ϭϰϬ͕ϬϬϬĂŶŶƵĂůůLJ
Kd, Z ydZK/EZz E &/d^K&d, WZK: dΎ
:DWHUV¶(GJHZLOO support the needs of WKH&LW\¶V residents, the surrounding community, and the
&LW\¶s stated missions and objectives. Enabling the Districts to finance a portion of the ³EDVLF´
Public Improvements is essential to offset the higher costs associated with delivering public benefit
and extraordinary development outcomes͘
:DWHUV¶(GJHDFRPPXQLW\GHVLJQHGWRFDWHUWRWKHGHPRJUDSKLFRIDFWLYHDGXOWVDJLQJLQSODFH
and seniors will deliver to Fort Collins and the region public benefits through extraordinary
development outcomes, if we are allowed to use the financing and operating opportunities of
metropolitan districts.
We operate on the premise that serving seniors in Fort Collins is positive for the individuals, their
families and the community at large. Clearly, allowing seniors to stay in their homes as long as
possible, forestalling the move to an assisted facility, is a financial and emotional windfall to the
person. Allowing those seniors to live in their city, or move closer to their families, benefits the
families and brings them closer to volunteer opportunities which benefit society while giving
psychic benefit to the individuals.
The Trends and Forces Report associatHGZLWKWKH&LW\ 3ODQ XSGDWH UHSRUWV WKDW )RUW&ROOLQV¶
SRSXODWLRQLVDJLQJ ³)RUH[DPSOHWKHQXPEHURIUHVLGHQWVEHWZHHQWKHDJHVRIDQGJUHZDW
LQFUHDVLQJ IURP RI WKH HQWLUH SRSXODWLRQ WR GXULQJ WKLV SHULRG´ 7KH 5HSRUW
concludes thatSDUDSKUDVLQJ ³«H[SDQGLQJORQJWHUPFDUHDQGVSHFLDOL]HGVHUYLFHVXVHGE\ROGHU
adults will be a key consideration moving forward if we are to maintain a good quality of life for
our residents and support their ability to remain in Fort Collins as they DJH´:DWHUV¶(GJH LV
designed to do that for a portion of this cohort, based on community design, house design and high
service levels all focused on allowing seniors to remain healthy and in their homes as long as
possible.
Our market studies show a need for a community like this in Northern Colorado and specifically
in Fort Collins. Otherwise folks must go to Broomfield or Adams County and each of those
communities are nearly built out.
Our community is informed by the Health Impact Assessment we commissioned in 2015, one of
the only health assessments commissioned privately from Safe and Healthy Communities Inc. with
input from University of Colorado Health and Larimer County. We invite you to read the document
and offer the following from the executive summary to entice:
³'ŽŽĚŚĞĂůƚŚĐĂƌĞŝƐǀŝƚĂů͕ďƵƚĂŐƌŽǁŝŶŐďŽĚLJŽĨƌĞƐĞĂƌĐŚŝŶĚŝĐĂƚĞƐƚŚĂƚƚŚĞďƵŝůƚĞŶǀŝƌŽŶŵĞŶƚĐĂŶ
ŚĂǀĞĂŶĞŶŽƌŵŽƵƐĞĨĨĞĐƚŽŶŚƵŵĂŶŚĞĂůƚŚ͘dŚĞĂǀĂŝůĂďŝůŝƚLJŽĨƚƌĂŶƐƉŽƌƚĂƚŝŽŶŽƉƚŝŽŶƐ͕ŚŝŐŚͲƋƵĂůŝƚLJ
ŚŽƵƐŝŶŐ͕ĂŶĚĂĐĐĞƐƐƚŽŚĞĂůƚŚLJĨŽŽĚĂůůƐŚĂƉĞƉĞŽƉůĞƐ͛ďĞŚĂǀŝŽƌƐĂŶĚŝŶĨůƵĞŶĐĞƚŚĞŝƌŚĞĂůƚŚƐƚĂƚƵƐ
ĂŶĚƋƵĂůŝƚLJŽĨůŝĨĞ͘hƌďĂŶƉůĂŶŶŝŶŐĚĞĐŝƐŝŽŶƐĐĂŶƐŝŐŶŝĨŝĐĂŶƚůLJŝŵƉĂĐƚƉŚLJƐŝĐĂůĂŶĚŵĞŶƚĂůŚĞĂůƚŚ͕
ƐĂĨĞƚLJ͕ĂŶĚƐŽĐŝĂůǁĞůůͲďĞŝŶŐ͕ĂŶĚƐŚŽƵůĚďĞĂƐƐĞƐƐĞĚƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞŝƌĞĨĨĞĐƚƐŽŶƌĞƐŝĚĞŶƚƐ͕
ƉĂƌƚŝĐƵůĂƌůLJƚŚĞĂŐŝŶŐ͘dŚĞĚĞƐŝŐŶĨĞĂƚƵƌĞƐƚŚĂƚĂƌĞĂĚĚƌĞƐƐĞĚŝŶƚŚŝƐ,/ƌĞůĂƚĞĚƚŽƐĞŶŝŽƌƐŝŶĐůƵĚĞ
ĂĐĐĞƐƐƚŽŚŽŵĞƐ͕ĂŵĞŶŝƚŝĞƐ͕ĂŶĚƐĞƌǀŝĐĞƐ͕ŵŽǀŝŶŐƚŚƌŽƵŐŚƚŚĞŚŽŵĞƐĂĨĞůLJ͕ƉƌŽǀŝĚŝŶŐƉůĂĐĞƐĨŽƌ
ŚĞĂůƚŚLJĞĂƚŝŶŐĂŶĚŵĞĂůƉƌĞƉĂƌĂƚŝŽŶ͕ƐŽĐŝĂůŝnjŝŶŐ͕ĂĐƚŝǀĞĂŶĚůĞŝƐƵƌĞĂĐƚŝǀŝƚŝĞƐ͕ĂŶĚĞŶũŽLJŵĞŶƚŽĨ
ƚŚĞŽƵƚĚŽŽƌƐ͘͟
The built environment, and design features recommended in the Assessment, are embodied in
:DWHUV¶(GJHIURPWKHFRPPXQLW\GHVLJQWRWKHXQLYHUVDOO\GHVLJQHGKRXVHVDQGILQDOO\WRWKH
services to be provided by the metropolitan districts proposed to serve the community residents.
The districts will tax and assess fees to its landowners and residents ± other Fort Collins tax payers
will not pay. These districts embody the premise that their benefits are societal while the costs fall
on the individual. Buyers will be fully informed of the taxes and fees associated with the districts
along with the benefits. Our experience, and that of other communities in Colorado, is that fully
informed buyers choose these types of communities.
7KH&LW\¶VGUDIWPolicy for Reviewing Proposed Service Plans for Metropolitan Districts dated
July 17, 2018 anticipates the evaluation of WKH YDOXH H[FKDQJH EHWZHHQ ³EDVLF LQIUDVWUXFWXUH´
expenditures by the Metro District against extraordinary development outcomes delivered by the
districts. 7KHSURSRVHGPHWURGLVWULFWVIRU:DWHUV¶(GJHFDQEHHYDOXDWHGDJDLQVWWKHIRXUIRFXV
areas of policy objectives in the Policy and then the non-district costs (Indirect Costs) incurred to
achieve the extraordinary outcomes.
WK>/zK: d/s ^
ŶǀŝƌŽŶŵĞŶƚĂů^ƵƐƚĂŝŶĂďŝůŝƚLJKƵƚĐŽŵĞƐ
x tĂƚĞƌƐ͛ ĚŐĞĐŽŵŵƵŶŝƚLJĚĞƐŝŐŶŝƐĨŽĐƵƐĞĚŽŶƌĞĚƵĐŝŶŐŽĨĨͲƐŝƚĞƚƌĂǀĞůŽĨŝƚƐƌĞƐŝĚĞŶƚƐ͕ƌĞĚƵĐŝŶŐ
ŐƌĞĞŶŚŽƵƐĞŐĂƐĞŵŝƐƐŝŽŶƐ͘
x KƵƌƉůĂŶŶĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJĞŶƚĞƌǁŝůůƚĞĂĐŚďLJĞdžĂŵƉůĞƵƐŝŶŐƐŽůĂƌƉŽǁĞƌƚŽĐŚĂƌŐĞ
ĞůĞĐƚƌŝĐůĂǁŶŵŽǁĞƌƐĂŶĚĐŽŵŵƵŶŝƚLJďƵŝůĚŝŶŐƐǁŚŝůĞĞdžŚŝďŝƚŝŶŐƚŚĞĐĂƉƉĞĚŽŝůǁĞůů
ƉƵŵƉʹƚŚĞ͞ŶĞǁĞŶĞƌŐLJĞĐŽŶŽŵLJ͟ǀƐ͘ƚŚĞŽůĚ͘
x tĂƚĞƌƐ͛ ĚŐĞƌĞƐŝůŝĞŶĐLJŝƐƐƚƌĞŶŐƚŚĞŶĞĚďLJŝŶĐŽƌƉŽƌĂƚŝŶŐƚŚĞůĂƚĞƐƚĚĞƐŝŐŶŽĨ>Žǁ/ŵƉĂĐƚ
ĞǀĞůŽƉŵĞŶƚǁŝƚŚďŝŽƌĞƚĞŶƚŝŽŶĨĂĐŝůŝƚŝĞƐĂŶĚƉĞƌŵĞĂďůĞƉĂǀĞŵĞŶƚƐLJƐƚĞŵƐ͘
x tĂƚĞƌƐ͛ ĚŐĞĐŽŵŵŝƚƐƚŚĂƚŚŽƵƐĞƐďƵŝůƚŝŶƚŚĞĐŽŵŵƵŶŝƚLJǁŝůůŝŶĐůƵĚĞĞŶŚĂŶĐĞĚ
ďƵŝůĚŝŶŐƐƚĂŶĚĂƌĚƐĨŽƌǁĂƚĞƌĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƚŝŽŶŽƵƚĐŽŵĞƐ͘ϲϱйŽĨůŽƚƐĂƌĞƐŽůĂƌ
ŽƌŝĞŶƚĞĚŝŶtĂƚĞƌƐ͛ ĚŐĞ^ĞĐŽŶĚ&ŝůŝŶŐ͘
x &ŝǀĞŽŝůĂŶĚŐĂƐǁĞůůƐ͕ƚŚƌĞĞŽĨǁŚŝĐŚǁĞƌĞŝŶŽƉĞƌĂƚŝŽŶ͕ŚĂǀĞĂůƌĞĂĚLJďĞĞŶƉůƵŐŐĞĚĂŶĚ
ĂďĂŶĚŽŶĞĚƌĞŵŽǀŝŶŐƚŚĂƚĞŶǀŝƌŽŶŵĞŶƚĂůŝƐƐƵĞŶŽƚũƵƐƚĨƌŽŵtĂƚĞƌƐ͛ ĚŐĞďƵƚĨƌŽŵƚŚĞ
ƐƵƌƌŽƵŶĚŝŶŐĐŽŵŵƵŶŝƚŝĞƐĂƐǁĞůů͘dŚĞŵŝŶĞƌĂůƌŝŐŚƚƐŚŽůĚĞƌŚĂƐƌĞůŝŶƋƵŝƐŚĞĚĂůůƌŝŐŚƚƐƚŽ
ƵƐĞƚŚĞƐƵƌĨĂĐĞŝŶtĂƚĞƌƐ͛ ĚŐĞ^ĞĐŽŶĚ&ŝůŝŶŐ͘
ƌŝƚŝĐĂůWƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞ
x tĂƚĞƌƐ͛ ĚŐĞŝƐĐŽŶƚƌŝďƵƚŝŶŐƚŽƌĞŐŝŽŶĂůƚƌĂŶƐƉŽƌƚĂƚŝŽŶŶĞĞĚƐǁŝƚŚĐŽŶƐƚƌƵĐƚŝŽŶŽĨĂ
ƚƌĂĨĨŝĐƐŝŐŶĂůĂƚdƵƌŶďĞƌƌLJĂŶĚŽƵŶƚƌLJůƵďZŽĂĚĂŶĚĂĐŽŶƚƌŝďƵƚŝŽŶƚŽƌĞƐŽůǀŝŶŐƚŚĞ
ǀĞdžŝŶŐŝŶƚĞƌƐĞĐƚŝŽŶĂƚdŝŵďĞƌůŝŶĞĂŶĚsŝŶĞ͘dŚĞtĂƚĞƌƐ͛ ĚŐĞĚŝƐƚƌŝĐƚƐǁŝůůĂůƐŽ
ƉĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞZĞŐŝŽŶĂů/ŵƉƌŽǀĞŵĞŶƚDŝůů>ĞǀLJǁŚŝĐŚǁŝůůĐŽŶƚƌŝďƵƚĞŽǀĞƌΨϰ͘ϯ
ŵŝůůŝŽŶƚŽƌĞŐŝŽŶĂůŝŵƉƌŽǀĞŵĞŶƚƐ͘
^ŵĂƌƚ'ƌŽǁƚŚDĂŶĂŐĞŵĞŶƚ
x tĂƚĞƌƐ͛ ĚŐĞƉƌŽŵŽƚĞƐƐŽĐŝĂůŝŶƚĞƌĂĐƚŝŽŶƚŚƌŽƵŐŚĚĞǀĞůŽƉŵĞŶƚĚĞƐŝŐŶ͕ĐƌĞĂƚŝŶŐ
ŐĂƚŚĞƌŝŶŐƉůĂĐĞƐƚŚĂƚĂƚƚƌĂĐƚƉĞŽƉůĞĂŶĚĨĂĐŝůŝƚĂƚĞĐŽŶŶĞĐƚŝŽŶƐ͘dŚĞƐĞŝŶĐůƵĚĞ
ƐƚƌĂƚĞŐŝĐĂůůLJƉůĂĐĞĚďĞŶĐŚĞƐ͕ĨŝƌĞƉŝƚƐĂŶĚĂƌďŽƌƐŝŶƚŚĞĂďƵŶĚĂŶƚŽƉĞŶƐƉĂĐĞ͕
ĐŽŵŵƵŶŝƚLJŐĂƌĚĞŶƐ͕ƐŽŵĞǁŝƚŚĞĚŝďůĞƉůĂŶƚƐĂŶĚĂĐŽŵŵƵŶŝƚLJŬŝƚĐŚĞŶ͘
x ZĞĚƵĐŝŶŐƚŚĞŶĞĞĚĨŽƌŽĨĨͲƐŝƚĞƚƌĂǀĞůďĞŶĞĨŝƚƐƚŚĞƌĞƐŝĚĞŶƚƐ͕ďLJƌĞĚƵĐŝŶŐĐŽƐƚƐĂŶĚ
ŚĂƐƐůĞƐ͕ĂŶĚďĞŶĞĨŝƚƐƚŚĞƉůĂŶĞƚďLJƌĞĚƵĐŝŶŐŐƌĞĞŶŚŽƵƐĞŐĂƐĞƐ͘
x dŚĞĐŽŵŵƵŶŝƚLJĚĞƐŝŐŶǁŝůůĞŶĐŽƵƌĂŐĞŚĞĂůƚŚŝĞƌůŝǀŝŶŐƉĂƚƚĞƌŶƐǁŚŝĐŚŝƐŽŶĞŽĨŽƵƌ
ƉƌŝŵĂƌLJŐŽĂůƐ͘
KƚŚĞƌƉůĂŶƐ͕ǁŚŝĐŚŚĂǀĞŶŽƚLJĞƚďĞĞŶĨƵůůLJĚĞƐŝŐŶĞĚŽƌĂƉƉƌŽǀĞĚďLJƚŚĞŝƚLJ͕ĂŶĚǁŝůůďĞƐƵďũĞĐƚ
ƚŽ ƐŝƚĞ ƉůĂŶŶŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ƚŚĞ ŝƚLJ ĂŶĚ͕ ƵůƚŝŵĂƚĞůLJ͕ ĞǀĞůŽƉŵĞŶƚ ŐƌĞĞŵĞŶƚƐ Žƌ
ŝŶƚĞƌŐŽǀĞƌŶŵĞŶƚĂůĂŐƌĞĞŵĞŶƚƐ͗
x ,ĞĂůƚŚ͕tĞůůŶĞƐƐĂŶĚ^ĞŶŝŽƌĐƚŝǀŝƚLJĞŶƚĞƌ͗dŚŝƐǁĂůŬĂďůĞĨĂĐŝůŝƚLJ͕ǁŚŝĐŚǁŝůů
ŝŶĐŽƌƉŽƌĂƚĞĂŶĂƌƚŝƐĂŶǁŽƌŬƐŚŽƉĂŶĚŝŶǀĞŶƚŽƌƐĐĞŶƚĞƌ͕ǁŝůůƐĞƌǀĞtĂƚĞƌƐ͛ ĚŐĞƌĞƐŝĚĞŶƚƐ
ĂŶĚƚŚĞƐƵƌƌŽƵŶĚŝŶŐĐŽŵŵƵŶŝƚLJ͘dŚĞĐĞŶƚĞƌǁŝůůƌĞĚƵĐĞƚŚĞĐŽŵŵƵŶŝƚLJ͛ƐĐĂƌďŽŶ
ĨŽŽƚƉƌŝŶƚďLJƌĞĚƵĐŝŶŐĐĂƌƚƌĂǀĞůƚŽƚŚĞĞdžŝƐƚŝŶŐ^ĞŶŝŽƌĞŶƚĞƌŽĨϴŵŝůĞƐĂŶĚƚƌĂǀĞůƚŽ
ĞdžŝƐƚŝŶŐƌĞĐƌĞĂƚŝŽŶŽĨϰ͘ϱŵŝůĞƐ͘dŚŝƐĨĂĐŝůŝƚLJƉƌŽǀŝĚĞƐĂŶĞŶǀŝƌŽŶŵĞŶƚƚŚĂƚĞŶĐŽƵƌĂŐĞƐ
ĂŶĚĨĂĐŝůŝƚĂƚĞƐƐŽĐŝĂůĐŽŶŶĞĐƚŝŽŶĂŶĚŝŶƚĞƌĂĐƚŝŽŶǁŚŝĐŚŝƐƉĂƌƚŝĐƵůĂƌůLJŝŵƉŽƌƚĂŶƚĨŽƌŽůĚĞƌ
ĂĚƵůƚƐ͘WƌŽŐƌĂŵŵŝŶŐŽĨƚŚĞĨĂĐŝůŝƚLJǁŝůůĂůƐŽďĞĂŵĞƚƌŽĚŝƐƚƌŝĐƚƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽĞŶƐƵƌĞ
ŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌƐŽĐŝĂůĐŽŶŶĞĐƚŝŽŶƐƚŚŽƵŐŚĐůĂƐƐĞƐ͕ĂĐƚŝǀŝƚŝĞƐĂŶĚĞǀĞŶƚƐ͘
x ^ƵƐƚĂŝŶĂďŝůŝƚLJĞŶƚĞƌ͕ŝŶĐůƵĚŝŶŐ͗
o ŽŵŵĞƌĐŝĂůĞůĞĐƚƌŝĐůĂǁŶŵŽǁĞƌƐĂŶĚĞůĞĐƚƌŝĐǀĞŚŝĐůĞƚŽĐŽůůĞĐƚĐŽŵƉŽƐƚ
o ^ŽůĂƌƌĞĐŚĂƌŐŝŶŐƐƚĂƚŝŽŶĨŽƌĞůĞĐƚƌŝĐĞƋƵŝƉŵĞŶƚĂŶĚǀĞŚŝĐůĞƐ͘
o ^ŽůĂƌŐĂƌĚĞŶƐƚŽƉƌŽǀŝĚĞƌĞŶĞǁĂďůĞĞŶĞƌŐLJĨŽƌĐŽŵŵƵŶŝƚLJďƵŝůĚŝŶŐƐ
o ŽŵƉŽƐƚĐŽůůĞĐƚŝŽŶƐŝƚĞ
x ŽŵŵƵŶŝƚLJ<ŝƚĐŚĞŶ͗tŝůůďĞƵƐĞĚƚŽĞĚƵĐĂƚĞƚŚĞĐŽŵŵƵŶŝƚLJŽŶŶƵƚƌŝƚŝŽŶ͕ŚĞĂůƚŚLJĞĂƚŝŶŐ
ĂŶĚƐƵƐƚĂŝŶĂďůĞĂŐƌŝĐƵůƚƵƌĞ͘
x 'ƌĞĞŶŚŽƵƐĞƐĂŶĚĂƋƵĂƉŽŶŝĐƐĨĂĐŝůŝƚLJ͗ĚĚŝƚŝŽŶĂůĞůĞŵĞŶƚƐŽĨƵƌďĂŶĂŐƌŝĐƵůƚƵƌĞ͘
/E/Z dK^d^E E,E s >KWD EdKhdKD ^
ŶĂďůŝŶŐƚŚĞŝƐƚƌŝĐƚƐƚŽĨŝŶĂŶĐĞĂƉŽƌƚŝŽŶŽĨƚŚĞ͞ďĂƐŝĐ͟WƵďůŝĐ/ŵƉƌŽǀĞŵĞŶƚƐŝƐĞƐƐĞŶƚŝĂů
ƚŽ ŽĨĨƐĞƚ ƚŚĞ ŚŝŐŚĞƌ ĐŽƐƚƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ĚĞůŝǀĞƌŝŶŐ ƉƵďůŝĐ ďĞŶĞĨŝƚ ĂŶĚ ĞdžƚƌĂŽƌĚŝŶĂƌLJ
ĚĞǀĞůŽƉŵĞŶƚŽƵƚĐŽŵĞƐ͘tĞƉŽƐŝƚƚŚĂƚĂĐŽŵŵƵŶŝƚLJĚĞƐŝŐŶĞĚƚŽĂůůŽǁƐĞŶŝŽƌƐƚŽƐƚĂLJŝŶ&Žƌƚ
ŽůůŝŶƐĂŶĚƐƚĂLJŝŶƚŚĞŝƌŚŽŵĞƐůŽŶŐĞƌƉƌŽǀŝĚĞƐĂƉƵďůŝĐďĞŶĞĨŝƚ͘
/ŶĚŝƌĞĐƚŽƐƚƐ͗EĞĐĞƐƐĂƌLJĞdžƚƌĂŽƌĚŝŶĂƌLJĚĞǀĞůŽƉĞƌĂŶĚďƵŝůĚĞƌĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ
ĚĞůŝǀĞƌŝŶŐƉƵďůŝĐďĞŶĞĨŝƚƐͬĞdžƚƌĂŽƌĚŝŶĂƌLJĚĞǀĞůŽƉŵĞŶƚŽƵƚĐŽŵĞƐƚŚĂƚǁŝůůŶŽƚďĞŝŶĐƵƌƌĞĚďLJƚŚĞ
ŝƐƚƌŝĐƚƐĂŶĚǁŝůůŶŽƚďĞĂƉƉƌŽǀĞĚŝŶƚŚĞŝƐƚƌŝĐƚƐ͛WƵďůŝĐ/ŵƉƌŽǀĞŵĞŶƚŽƐƚ ƐƚŝŵĂƚĞƐ͘
ĨĨŽƌĚĂďůĞ,ŽƵƐŝŶŐ^ƵďƐŝĚLJ͘&ŽƌϭϬйŽĨWŚĂƐĞ//͛ƐĞƐƚŝŵĂƚĞĚϰϳϭůŽƚƐΛΨϳ͕Ϯϱϰ;ƚĂŬĞŶ
ĨƌŽŵdŚƌŝǀĞ͛ƐĐŽƐƚĞƐƚŝŵĂƚĞĨƌŽŵ^ƚĂƉůĞƚŽŶͿсΨϯ͕ϰϭϳ͕ϭϬϱ
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tĂƚĞƌƐ͛ ĚŐĞ/ŶǀĞƐƚŵĞŶƚƐĂƐŬƐƚŚĞŝƚLJŽĨ&ŽƌƚŽůůŝŶƐƚŽďĞŝƚƐƉĂƌƚŶĞƌŝŶĚĞǀĞůŽƉŝŶŐĂŶ
ŝŶŶŽǀĂƚŝǀĞ ĂŶĚ ĞdžĐĞƉƚŝŽŶĂů ĐŽŵŵƵŶŝƚLJďLJƐƵƉƉŽƌƚŝŶŐĂŶĚĂƉƉƌŽǀŝŶŐŵĞƚƌŽƉŽůŝƚĂŶĚŝƐƚƌŝĐƚƐƚŽ
ƉƌŽǀŝĚĞƚŚĞŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ĂŵĞŶŝƚŝĞƐĂŶĚƐĞƌǀŝĐĞƐĚĞƐĐƌŝďĞĚŚĞƌĞŝŶ͘tĞďĞůŝĞǀĞƚŚĂƚƚŚĞĨĞĂƚƵƌĞƐ
ƚŚĂƚ ƚŚĞ ƉƌŽƉŽƐĞĚ ĚŝƐƚƌŝĐƚƐ ǁŝůů ƉƌŽǀŝĚĞ Žƌ ǁŝůů ĂůůŽǁ ďLJ ŽĨĨƐĞƚƚŝŶŐŽƚŚĞƌĐŽƐƚƐĂƌĞƚƌƵůLJ
ĞdžƚƌĂŽƌĚŝŶĂƌLJĂŶĚŝŶƐLJŶĐǁŝƚŚŵĂŶLJŽĨƚŚĞŝƚLJ͛ƐŝŵƉŽƌƚĂŶƚŝŶŝƚŝĂƚŝǀĞƐĂƐǁĞůůĂƐƚŚĞŵĂũŽƌƚŚĞŵĞƐ
ŽĨŝƚLJWůĂŶ͗͞/ŶŶŽǀĂƚĞʹ^ƵƐƚĂŝŶʹŽŶŶĞĐƚ͘͟
dŚŝƐĐŽŵŵƵŶŝƚLJĐĂŶŶŽƚďĞĂĐŚŝĞǀĞĚǁŝƚŚŽƵƚƚŚĞĨŝŶĂŶĐŝŶŐĂŶĚŽƉĞƌĂƚŝŶŐŽƉƉŽƌƚƵŶŝƚŝĞƐ
ĂĨĨŽƌĚĞĚ ďLJŵĞƚƌŽƉŽůŝƚĂŶĚŝƐƚƌŝĐƚƐ͘/Ĩ ƚŚĞ ŝƚLJǁĂŶƚƐƚŚŝƐƚLJƉĞŽĨĚĞǀĞůŽƉŵĞŶƚ͕ĂŶĚǁĂŶƚƐƚŽ
ĂĐŚŝĞǀĞ ŝƚƐ ƐƚƌĞƚĐŚ ŐŽĂůƐ͕ ŝƚ ŵƵƐƚ ďĞ ǁŝůůŝŶŐ ƚŽ ŐŝǀĞ ĞdžƚƌĂŽƌĚŝŶĂƌLJ ĚĞǀĞůŽƉŵĞŶƚƐ ƚŚĞ ƚŽŽůƐ ƚŽ
ĂĐŚŝĞǀĞƚŚŽƐĞŽƵƚĐŽŵĞƐ͘
*(Not considered “Public Benefits” for the purpose of this Service Plan)
EXHIBIT L
Disclosure Notice
ªª NOTICE OF INCLUSION IN A RESIDENTIAL METROPOLITAN DISTRICT
AND POSSIBLE PROPERTY TAX CONSEQUENCES
Legal description of the property and address:
(Insert legal description and property address).
This property is located in the following metropolitan district:
(Insert District Name).
In addition to standard property taxes identified on the next page, this property is subject to a
metropolitan district mill levy (another property tax) of up to:
(Insert mill levy maximum).
Based on WKHSURSHUW\¶V inclusion in the metropolitan district, an average home sales price of
$300,000 could result in ADDITIONAL annual property taxes up to:
(Insert amount).
The next page provides examples of estimated total annual property taxes that could be due on
this property, first if located outside the metropolitan district and next if located within the
metropolitan district. Note: property that is not within a metropolitan district would not pay
the ADDITIONAL amount.
The metropolitan district board can be reached as follows:
(Insert contact information).
You may wish to consult with: (1) the /DULPHU &RXQW\ $VVHVVRU¶V 2IILFH, to determine the
specific amount of metropolitan district taxes currently due on this property; and (2) the
metropolitan district board, to determine the highest possible amount of metropolitan district
property taxes that could be assessed on this property.
ESTIMATE OF PROPERTY TAXES
Annual Tax Levied on Residential Property With $300,000 Actual Value Without the District
Taxing Entity Mill Levies
(2017**)
Annual tax levied
Insert entity Insert amount $ Insert amount
Larimer County Insert amount $ Insert amount
City of Fort Collins Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
TOTAL: Insert total $ Insert amount
Annual Tax Levied on Residential Property With $300,000 Actual Value With the District
(Assuming Maximum District Mill Levy)
Taxing Entity Mill Levies
(2017**)
Annual tax levied
Insert District Name Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
Larimer County Insert amount $ Insert amount
City of Fort Collins Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
Insert entity Insert amount $ Insert amount
TOTAL: Insert total $ Insert total
**This estimate of mill OHYLHV LV EDVHG XSRQ PLOO OHYLHV FHUWLILHG E\ WKH /DULPHU &RXQW\ $VVHVVRU¶V Office in
December 20__ for collection in 20__, and is intended only to provide approximations of the total overlapping mill
levies within the District. The stated mill levies are subject to change and you should contact the Larimer County
$VVHVVRU¶VOffice to obtain accurate and current information.
FINANCIAL HEALTH OF METROPOLITAN DISTRICT
Financial information for (Insert District Name Here) as of (Insert Date of Last Annual Report
Here):
Notes Amount
Total Assessed Value Insert Notes Insert Amount
Current Mill Levy & Annual Revenue Insert Mill Insert Amount
Current Debt Mill Levy & Annual Revenue Insert Mill Insert Amount
Outstanding Debt Insert Term Insert Amount
Anticipated Payoff Year Insert Notes Insert Amount
Additional information regarding (Insert District Name Here) financial health and formation can
be found at the City of Fort Collins website, available at: fcgov.com.
In addition, the Colorado Department of Local Affairs may have the following materials
available:
Audited Financial Statements
Annual Budget
Annual Report on the Service Plan
Certification of Election Results
Certification of Tax Levies
Notice of Authorization of General Obligation Debt
Notice of Issuance of General Obligation Debt
Transparency ± Notice to Electors
Available at:
https://dola.colorado.gov/lgis/lgFinances.jsf
Or
Division of Local Government
1313 Sherman Street, Room 521
Denver, Colorado 80203
(303) 864-7720
Fax: (303) 864-0751
OR
Contact the District at:
_________Metropolitan District ______
_________[Address]________________
_________[Address]________________
_________[Phone]__________________
_________[Fax]____________________
_________[Email]___________________
06/01/2054 455,900 455,900
12/01/2054 3,200,000 4.000% 455,900 3,655,900 4,111,800
06/01/2055 391,900 391,900
12/01/2055 3,325,000 4.000% 391,900 3,716,900 4,108,800
06/01/2056 325,400 325,400
12/01/2056 3,705,000 4.000% 325,400 4,030,400 4,355,800
06/01/2057 251,300 251,300
12/01/2057 3,855,000 4.000% 251,300 4,106,300 4,357,600
06/01/2058 174,200 174,200
12/01/2058 4,270,000 4.000% 174,200 4,444,200 4,618,400
06/01/2059 88,800 88,800
12/01/2059 4,440,000 4.000% 88,800 4,528,800 4,617,600
50,330,000 44,712,600 95,042,600 95,042,600
12
12/01/2044 2,130,000 5.000% 469,500 2,599,500 3,069,000
06/01/2045 416,250 416,250
12/01/2045 2,240,000 5.000% 416,250 2,656,250 3,072,500
06/01/2046 360,250 360,250
12/01/2046 2,535,000 5.000% 360,250 2,895,250 3,255,500
06/01/2047 296,875 296,875
12/01/2047 2,660,000 5.000% 296,875 2,956,875 3,253,750
06/01/2048 230,375 230,375
12/01/2048 2,990,000 5.000% 230,375 3,220,375 3,450,750
06/01/2049 155,625 155,625
12/01/2049 6,225,000 5.000% 155,625 6,380,625 6,536,250
33,535,000 40,498,750 74,033,750 74,033,750
7
19,658,850 10.000 192,657 188,804 381,460 50.000
25,458,097 10.000 249,489 244,500 493,989 50.000
31,465,711 10.000 308,364 302,197 610,561 50.000
37,351,062 10.000 366,040 358,720 724,760 50.000
42,985,737 10.000 421,260 412,835 834,095 50.000
46,412,706 10.000 454,845 445,748 900,592 50.000
49,197,468 10.000 482,135 472,492 954,628 50.000
49,197,468 10.000 482,135 472,492 954,628 50.000
52,149,317 10.000 511,063 500,842 1,011,905 50.000
52,149,317 10.000 511,063 500,842 1,011,905 50.000
55,278,276 10.000 541,727 530,893 1,072,620 50.000
55,278,276 10.000 541,727 530,893 1,072,620 50.000
58,594,972 10.000 574,231 562,746 1,136,977 50.000
58,594,972 10.000 574,231 562,746 1,136,977 50.000
62,110,670 10.000 608,685 596,511 1,205,195 50.000
62,110,670 10.000 608,685 596,511 1,205,195 50.000
65,837,311 10.000 645,206 632,302 1,277,507 50.000
65,837,311 10.000 645,206 632,302 1,277,507 50.000
69,787,549 10.000 683,918 670,240 1,354,158 50.000
69,787,549 10.000 683,918 670,240 1,354,158 50.000
73,974,802 10.000 724,953 710,454 1,435,407 50.000
73,974,802 10.000 724,953 710,454 1,435,407 50.000
78,413,290 10.000 768,450 753,081 1,521,531 50.000
78,413,290 10.000 768,450 753,081 1,521,531 50.000
83,118,088 10.000 814,557 798,266 1,612,823 50.000
83,118,088 10.000 814,557 798,266 1,612,823 50.000
88,105,173 10.000 863,431 846,162 1,709,593 50.000
88,105,173 10.000 863,431 846,162 1,709,593 50.000
93,391,483 10.000 915,237 896,932 1,812,168 50.000
93,391,483 10.000 915,237 896,932 1,812,168 50.000
98,994,972 10.000 970,151 950,748 1,920,898 50.000
98,994,972 10.000 970,151 950,748 1,920,898 50.000
104,934,671 10.000 1,028,360 1,007,793 2,036,152 50.000
104,934,671 10.000 1,028,360 1,007,793 2,036,152 50.000
111,230,751 10.000 1,090,061 1,068,260 2,158,321 50.000
111,230,751 10.000 1,090,061 1,068,260 2,158,321 50.000
_______ ________ _______
24,732,888 24,238,230 48,971,118
7/30/2018 F WEMD Fin Plan 18 NR SP Fin Plan1+2029 IG Refg
Prepared by D.A.Davidson & Co.
Draft: For discussion purposes only.
3
252,000 $0 252,000 252,000 2655% 29% 0.0% 0.0%
394,992 0 0 394,992 0 646,992 676% 19% 0.0% 0.0%
548,500 0 0 548,500 0 1,195,492 346% 13% 0.0% 0.0%
742,717 0 0 742,717 0 1,938,209 235% 10% 0.0% 0.0%
925,924 1,676,750 1,676,750 (750,826) 0 1,187,383 171% 8% 55.2% 55.2%
1,149,365 1,676,750 1,676,750 (527,385) 0 659,998 132% 7% 68.5% 68.5%
1,390,335 1,676,750 1,676,750 (286,415) 0 373,583 107% 6% 82.9% 82.9%
1,591,713 1,676,750 1,676,750 (85,037) 0 288,546 90% 6% 94.9% 94.9%
1,629,511 1,676,750 1,676,750 (47,239) 0 241,307 78% 5% 97.2% 97.2%
1,786,143 1,781,750 1,781,750 4,393 0 245,701 72% 5% 100.2% 100.2%
1,928,541 1,926,500 $0 1,926,500 245,000 (242,959) 0 2,741 0% 0% 100.1% 100.1%
2,044,253 [Ref'd by ser. '29] 2,013,200 2,013,200 31,053 0 33,795 102% 8% 101.5% 101.5%
2,044,253 2,043,200 2,043,200 1,053 0 34,848 96% 7% 100.1% 100.1%
2,166,908 2,162,000 2,162,000 4,908 0 39,756 96% 7% 100.2% 100.2%
2,166,908 2,166,000 2,166,000 908 0 40,665 90% 7% 100.0% 100.0%
2,296,923 2,294,600 2,294,600 2,323 0 42,988 90% 7% 100.1% 100.1%
2,296,923 2,292,800 2,292,800 4,123 0 47,110 84% 6% 100.2% 100.2%
2,434,738 2,430,600 2,430,600 4,138 0 51,249 84% 6% 100.2% 100.2%
2,434,738 2,432,400 2,432,400 2,338 0 53,587 78% 6% 100.1% 100.1%
2,580,823 2,578,400 2,578,400 2,423 0 56,010 77% 6% 100.1% 100.1%
2,580,823 2,577,800 2,577,800 3,023 0 59,032 72% 5% 100.1% 100.1%
2,735,672 2,731,200 2,731,200 4,472 0 63,504 70% 5% 100.2% 100.2%
2,735,672 2,732,400 2,732,400 3,272 0 66,776 65% 5% 100.1% 100.1%
2,899,812 2,897,200 2,897,200 2,612 0 69,388 64% 5% 100.1% 100.1%
2,899,812 2,899,000 2,899,000 812 0 70,201 58% 4% 100.0% 100.0%
3,073,801 3,069,000 3,069,000 4,801 0 75,002 57% 4% 100.2% 100.2%
3,073,801 3,070,400 3,070,400 3,401 0 78,402 52% 4% 100.1% 100.1%
3,258,229 3,254,600 3,254,600 3,629 0 82,032 50% 4% 100.1% 100.1%
3,258,229 3,254,200 3,254,200 4,029 0 86,061 45% 3% 100.1% 100.1%
3,453,723 3,451,200 3,451,200 2,523 0 88,583 42% 3% 100.1% 100.1%
3,453,723 3,452,600 3,452,600 1,123 0 89,706 38% 3% 100.0% 100.0%
3,660,946 3,655,800 3,655,800 5,146 0 94,852 35% 3% 100.1% 100.1%
3,660,946 3,657,600 3,657,600 3,346 0 98,198 30% 2% 100.1% 100.1%
3,880,603 3,880,600 3,880,600 3 0 98,201 27% 2% 100.0% 100.0%
3,880,603 3,875,800 3,875,800 4,803 0 103,004 23% 2% 100.1% 100.1%
4,113,439 4,111,800 4,111,800 1,639 0 104,643 20% 1% 100.0% 100.0%
4,113,439 4,108,800 4,108,800 4,639 0 109,282 16% 1% 100.1% 100.1%
4,360,245 4,355,800 4,355,800 4,445 0 113,728 12% 1% 100.1% 100.1%
4,360,245 4,357,600 4,357,600 2,645 0 116,373 8% 1% 100.1% 100.1%
4,621,860 4,618,400 4,618,400 3,460 0 119,834 4% 0% 100.1% 100.1%
4,621,860 4,617,600 4,617,600 4,260 124,094 0 0% 0% 100.1% 100.1%
_________ _________ _________ _________ _________ _________
107,503,694 12,092,000 95,042,600 107,134,600 124,094 124,094
[FJul3018 19nrspF1] [FJul3018 29ig19nF1]
7/30/2018 F WEMD Fin Plan 18 NR SP Fin Plan1+2029 IG Refg
Prepared by D.A.Davidson & Co.
Draft: For discussion purposes only.
2
1
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943(b)(6).
XIII. ANNUAL REPORTS AND BOARD MEETINGS
A. General.
Each of the 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 have been issued. The Districts may file a consolidated annual report. The annual
UHSRUWPD\EHPDGHDYDLODEOHWRWKHSXEOLFRQWKH&LW\¶VZHEVLWH
B. Board Meetings.
(DFKRIWKH'LVWULFWV¶%RDUGVVKDOOKROGDWOHDVWRQHSXEOLFERDUGPHHWLQJLQWKUHHRIWKH
IRXUTXDUWHUVRIHDFKFDOHQGDU\HDUEHJLQQLQJLQWKHILUVWIXOOFDOHQGDU\HDUDIWHUWKH'LVWULFWV¶
creation. Notice for each of these meetings shall be given in accordance with the requirements of
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 issuing District once the total
amount of Debt issued by the Districts exceeds Five Million Dollars ($5,000,000). The External
Financial Advisor is to provide adviFHWRWKHLVVXLQJ'LVWULFW¶V%RDUGUHJDUGLQJWKHSURSRVHGWHUPV
and whether Debt conditions are reasonable based upon the status of development within the
District, the projected tax base increase in the District, the security offered and other considerations
as may be identified by the Advisor. The issuing District shall include in the transcript of any Bond
transaction, or other appropriate financing documentation for related Debt instrument, a signed
letter from the External Financial Advisor providing an official opinion on the structure of the
'HEWVWDWLQJWKH$GYLVRU¶VRSLQLRQWKDWWKHFRVWRILVVXDQFHVL]LQJUHSD\PHQWWHUPUHGHPSWLRQ
feature, couponing, credit spreads, payment, closing date, and other material transaction details of
the proposed Debt serve the best interest of the issuing District.
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:
DPDMRULW\RIWKHLVVXLQJ'LVWULFW¶V%RDUGLVFRPSRVHGRI(QG8VHUV
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 Ninety Five Million Twelve Thousand Five
Hundred Seventy Seven Dollars ($95,012,577) in Project costs in 2018 dollars as set
forth in Exhibit H, of which Twenty Eight Million One Hundred Twenty Thousand
Two Hundred Fifty Eight Dollars ($28,120,258
DUH FRVWV UHODWHG WR ³1RQ-Basic
,QIUDVWUXFWXUH´DQGZKLFKGRHVQRWLQFOXGHDSSUR[LPDWHO\Three Million Four Hundred
Seventeen Thousand One Hundred and Five Dollars ($3,417,105) LQ³,QGLUHFW&RVWV´
of the Planned Development which are necessary to provide a portion of the
extraordinary Public Benefits as set forth in Exhibit K. The Districts project to have
the ability to issue approximately Forty Nine Million Eight Hundred Sixty Thousand
Six Hundred Twenty Five Dollars (49,868,625) in Debt, as set forth in Exhibit J, and
anticipate issuing approximately Thirty One Million Five Hundred Thousand Dollars
($31,500,000) in Debt to pay for a portion of the Project costs, which such Debt
issuance amount plus any associated and reasonable costs of issuance shall be the
amount of the Maximum Debt Authorization. Intergovernmental Capital Pledge
Agreements among two or more of the Districts pledging the collection and payment
of property taxes or Fees by one District for the repayment of Debt by a separate issuing
District shall not count against the Maximum Debt Authorization. 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 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 H 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 H 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 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.
PLOOV at any point.
Notwithstanding any of the foregoing, the Operating Mill Levy limitation set forth in
WKLV6HFWLRQ,;%VKDOOQRWDSSO\LIWKHPDMRULW\RIWKH'LVWULFW¶V%RDUGLPSRVLQJVXFK
Operating Mill Levy is composed of End Users, subject to continual compliance with
the Aggregate Mill Levy Maximum.
4. Gallagher Adjustments
,Q WKH HYHQW WKH 6WDWH¶V PHWKRG RI FDOFXODWLQJ DVVHVVHG YDOXDWLRQ IRU WKH 7D[DEOH
Property changes after January 1, 2018, or any subsequent constitutionally mandated
tax credit, cut or aEDWHPHQW WKH 'LVWULFWV¶ $JJUHJDWH 0LOO /HY\ 'HEW 0LOO /HY\
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 DistriFW¶V%RDUGLQJRRGIDLWKVRWKDWWRWKHH[WHQWSRVVLEOHWKH
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, 2018. 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
DUH FRVWV UHODWHG WR ³1RQ-%DVLF ,QIUDVWUXFWXUH´ DQG ZKLFK GRHV QRW LQFOXGH
approximately Three Million Four Hundred Seventeen Thousand One Hundred and Five Dollars
($3,417,105) LQ³,QGLUHFW&RVWV´RIWKH3ODQQHG'HYHORSPHQWZKLFKDUHQHFHVVDU\WRSURYLGHa
portion of the extraordinary Public Benefits as set forth in Exhibit L. The cost estimates are based
upon preliminary engineering, architectural surveys, and reviews of the Public Improvements 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 costs, which are approved by the City in an Approved
Development Plan, shall not constitute a Service Plan Amendment. In addition, 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.
The 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. The 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. The Districts shall also be permitted to allocate costs
between such categories of the Public Improvements as deemed necessary in its discretion.
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
'HYHORSHUZLOOREWDLQWKH&LW\¶VDSSURYDORIFLYLOHQJLQHHULQJSODQVDQGZLOOREWDLQDSSOLFDEOH
permits for construction and installation of Public Improvements prior to performing such work.
Unless waived by the City, 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
WKH&LW\0DQDJHU¶VGLVFUHWLRQwhen 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. Any limitation or
UHTXLUHPHQWFRQFHUQLQJWKHWLPHZLWKLQZKLFKWKH&LW\PXVWUHYLHZWKH'LVWULFWV¶SURSRVDORU
application 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.
, as more particularly set forth in Exhibit K.
This Project and Planned Development will result in an extraordinary community
exhibiting the newest aspects of smart growth, included but not limited to, providing housing
options to an under-VHUYHG VHJPHQW RI WKH &LW\¶V SRSXODWLRQ energy and water conservation,
UHGXFWLRQ LQ WKH&LW\¶V FDUERQ IRRWSULQW VXEVWDQWLDO community services, enhancements to the
natural environment and smart and purposeful growth. The Service Area includes approximately
40% open space, incorporating direct access to such open space from each lot through a system of
expansive trails to allow bike/pedestrian/scooter access to community parks and other amenities.
7KH3URMHFW¶VSODQQHG non-potable water system is designed not just to save potable water supplies,
but also reduce overall irrigation uses by approximately 30%. The Planned Development includes
single family house designs of 100% single level living, nearly all ranches, and many with stepless
entries designed to allow seniors to age-in-place independently and delay re-location to assisted
living facilities.
The purpose of the Districts is to provide for the planning, design, acquisition, construction,
installation, relocation and redevelopment of a portion of the Public Improvements necessary to
enable the Project and Planned Development to develop as planned.
Notwithstanding any provision to the contrary contained in this Service Plan, a District
shall not be authorized to issue any Debt, impose a Debt Mill Levy or Fees for the purpose of
repayment of Debt on any property within the Project unless and until the delivery of the Public
Benefits specifically related to the phase of development or Public Improvements which will be
financed with such Debt, Debt Mill Levy or Fees, are secured in a manner approved by the City
Manager. To satisfy this prerequisite to the issuance of Debt and to the imposition of taxes and
Fees, delivery of the Public Benefits for each phase of the Project must be secured by one or both
of the following methods, as applicable:
1. For any 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 agreeing to
provide such Public Benefits as a legally enforceable multiple-fiscal year obligation of
the District under TABOR before the City is required to issue building permits and/or
ATTACHMENT 3