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HomeMy WebLinkAbout1998-133-09/22/1998-DISAPPROVING THE SERVICE PLAN FOR RICHARDS LAKE METROPOLITAN DISTRICT RESOLUTION 98-133 OF THE COUNCIL OF THE CITY OF FORT COLLINS DISAPPROVING THE SERVICE PLAN FOR RICHARD'S LAKE METROPOLITAN DISTRICT WHEREAS, there has been presented to the Council of the City of Fort Collins (the "Council")for its consideration in accordance with the provisions of Title 32,Article 1,Part 2 of the Colorado Revised Statutes,as amended,the"Service Plan for Richard's Lake Metropolitan District" dated September 3, 1998,a copy of which is attached hereto as Exhibit"A"and incorporated herein by reference (the "Service Plan"); and WHEREAS,pursuant to the provisions of Title 32,Article 1,Part 2 of the Colorado Revised Statutes, as amended, the Council held a public hearing on March 17, 1998, which hearing was continued to September 15, 1998, and again to September 22, 1998; and WHEREAS, notice of this hearing was duly published in the Fort Collins Coloradoan, a newspaper of general circulation within the City of Fort Collins, on February 24, 1998, as required by law, and such notice was sent to the petitioners seeking approval of the Service Plan for the proposed Richard's Lake Metropolitan District (the "District"), and to the governing body of any existing municipality located within a radius of three (3) miles of the District and to any special district which has levied an ad valorem tax within the next preceding tax year and which is also located within a radius of three (3) miles of the District; and WHEREAS, said notice of hearing was also sent to the Colorado Division of Local Government and to all property owners within the boundaries of the District and to the owners of real property located within three (3) miles of the boundaries of the District; and WHEREAS,the Service Plan proposes for the District to provide certain organized services for the area to be included in the District ("the District Area"), which services relate to the construction of streets, parks and stormwater facilities, and for the future maintenance of the parks and stormwater facilities ("the Proposed Services"); and WHEREAS, the Council has considered the Service Plan and all of the testimony and evidence presented at the hearing; and WHEREAS, C.R.S. Sections 32-1-203(2) and 32-1-204.5(1) require the Council to disapprove the Service Plan unless evidence satisfactory to the Council is presented to it that all of the mandatory criteria set forth in C.R.S. Section 32-1-203(2)(a), (b), (c) and (d) have been met. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby determines that all of the requirements of Title 32, Article 1, Part 2 of the Colorado Revised Statutes, as amended, relating to the filing of the Service Plan for the District have been fulfilled and that the notice of the hearing was given in the time and the manner required by law. Section 2. That the Council hereby finds as follows: A. Because the District Area is currently vacant, undeveloped land, there is not sufficient existing need for the Proposed Services in the District Area and the existing services relating to streets, parks and stormwater facilities in the District Area are adequate for the present needs of the Area; B. If and when the District Area is developed, the projected need for the Proposed Services will be adequately served by the construction of streets, parks and stormwater facilities that will be required and provided to the development under the Code of the City of Fort Collins and by the City of Fort Collins providing future maintenance for such parks and stormwater facilities; and C. Because the financial assumptions of the District's Financing Plan contained in the Service Plan are based on speculative predictions about future market conditions relative to the development of the District Area, the District may not be capable of providing economically and sufficiently those Proposed Services that relate to the future maintenance of the parks and stormwater facilities and the District Area may not have the financial ability to discharge the proposed indebtedness of the District on a reasonable basis. Section 3. Based on the foregoing findings, the Council hereby concludes that the Service Plan fails to satisfy all of the mandatory criteria of C.R.S. 32-1-203(2). The Council therefore disapproves the Service Plan. Passed and adopted at an adjourned meeting of the City C held this da September A.D. 1998. avor ATTEST: - 4" LOA 1�:A� City Clerk EXHIBIT A SERVICE PLAN FOR RICHARD'S LAKE METROPOLITAN DISTRICT September 3, 1998 TABLE OF CONTENTS I. INTRODUCTION.............................................................................................. II. PURPOSE OF AND NEED FOR THE PROPOSED DISTRICT.........................2 A. PURPOSE AND INTENT........................................................................................ 2 B. NEED FOR DISTRICT............................................................................................ 2 C. GENERAL POWERS............................................................................................... 3 1. Specific Powers. .................................................................................................... 3 2. Miscellaneous Powers. .......................................................................................... 3 III. BOUNDARIES; POPULATION AND ASSESSED VALUATION ESTIMATES............................ 4 A. GENERAL................................................................................................................ 4 B. CHANGES IN BOUNDARIES................................................................................ 4 C. POPULATION AND ASSESSED VALUATION ESTIMATES............................ 4 IV. DESCRIPTION OF PROPOSED FACILITIES..................................................... 4 A. STREET IMPROVEMENTS. .................................................................................. 5 1. Roadway Infrastructure. ........................................................................................ 5 2. Drainage Facilities................................................................................................. 5 3. Cost Estimates. ...................................................................................................... 5 B. PARK AND RECREATION IMPROVEMENTS; LANDSCAPING..................... 5 1. Parks. ..................................................................................................................... 6 2. Recreation.............................................................................................................. 6 3. Trails...................................................................................................................... 6 4. Street Landscaping. ............................................................................................... 6 5. Cost Estimates. ...................................................................................................... 6 C. COST ESTIMATE SUMMARY........................ D. CONSTRUCTION STANDARDS........................................................................... 6 E. DEDICATION OF IMPROVEMENTS. ................................................................. 6 F. OWNERSHIP/OPERATION OF FACILITIES BY DISTRICT. ............................ 7 G. SERVICES OF DISTRICT. ..................................................................................... 7 V. FINANCIAL PLAN................................................................................................... 7 A. GENERAL PLAN OF FINANCE............................................................................ 7 B. OPERATING COSTS. ............................................................................................. 9 C. OTHER FINANCIAL INFORMATION.................................................................. 9 D. ELECTIONS AND CONDITIONS ON EXERCISE OF FINANCLAL POWERS. ............................................................................................................... 10 VI. GENERAL MATTERS........................................................................................... 10 A. ELECTIONS........................................................................................................... 10 B. MODIFICATION OF SERVICE PLAN............................................................... 11 C. RESOLUTION OF APPROVAL. .......................................................................... 11 D. DISCLOSURE........................................................................................................ 11 VII. CONCLUSION ..................................................................................................... 11 ii LIST OF EXHIBITS EXHIBIT A City Council Resolution of Approval EXHIBIT B Legal Description EXHIBIT C Boundary Map EXHIBIT D Statutory Contents of Service Plan EXHIBIT E FaciIities Diagram EXHIBIT F Estimated Capital Costs EXHIBIT G Financing Plan iii I. INTRODUCTION This Service Plan ("Service Plan") for Richard's Lake Metropolitan District (hereinafter the "District") is for a special district proposed to be organized to serve the needs of a new community to be known as "Richard's Lake." The proposed District is generally located north and west of Richard's Lake Road and County Road 11 and contains approximately 181 acres. The primary purpose of the proposed District is to provide public improvements to be dedicated to Fort Collins or retained by the District for the use and benefit of the District's inhabitants and taxpayers. The District will retain responsibility for maintenance of all drainage improvements outside public rights-of-way and will agree with Fort Collins on an acceptable standard of maintenance. This will eliminate the potential burden on the City for maintenance of drainage improvements, and will reduce homeowner association costs for property owners. Improvements to be provided by the District shall include the types of facilities and improvements generally described in Section II.C. below, consisting of streets, drainage improvements, and park and recreation facilities needed for the area. The City will maintain storm drainage facilities within the right-of-way of streets. It is hoped that the district structure set forth herein can serve as a model of how development should occur in Fort Collins in such a way as to eliminate economic risk to the City, provide economic benefits to property owners, and place the risk of development on property developers. This Service Plan consists of a financial analysis and engineering information showing how the facilities and services of the District can be provided and financed economically. Numerous items are addressed in this Service Plan in order to satisfy the requirements of law for formation of special districts. Those items are listed in Exhibit D attached hereto. This Service Plan satisfies each of the requirements of law. The Financing Plan discussed herein has been designed to assure that at no time will obligations of the District ever be in risk of default, and that the City of Fort Collins will never have any legal responsibility for any of the District's obligations. This Service Plan is designed to assure that the risk of development remains with the developer until a sufficient tax base has been achieved to pay the District's debt with reasonable mill levies. Debt service mill levies are proposed to be capped, initial bond issues will be purchased by the developer, and public sale of District obligations will not occur until the requirements of this Service Plan have been met. This Service Plan has been prepared with sufficient flexibility to enable the District to provide required services and facilities under evolving circumstances to meet the needs of the community. While the assumptions upon which this Service Plan are generally based are reflective of current zoning for the property within the proposed District, the cost estimates and the Financing Plan are sufficiently flexible to enable the District to provide necessary services and facilities without the need for repeated amendments to the Service Plan. Modification of the proposed configuration of improvements, scheduling of construction of such improvements, as well as the locations and dimensions of various facilities and improvements shall be permitted to accommodate development needs consistent with zoning for the property. This Service Plan was prepared by White and Associates Professional Corporation, 6860 South Yosemite Court, Suite 200, Englewood, Colorado 80112; telephone (303) 221-6300 with the assistance of Stan Bernstein and Associates of Denver and TS&T Consulting Engineers of Fort Collins. II. PURPOSE OF AND NEED FOR THE PROPOSED DISTRICT A. Purpose and Intent. It is intended that the District will provide certain essential public-purpose facilities for the use and benefit of all the anticipated owners of real property contained within the boundaries of the District which are wholly located within Fort Collins. It is not the intent of the District to provide ongoing services other than as specifically set forth in Section IV hereof. The District acknowledges the need and its intent to cooperate with Fort Collins to serve and promote the health, safety, prosperity, security and general welfare of its inhabitants. As evidence of such cooperation and need to coordinate activities with Fort Collins, the proposed District shall obtain a resolution approving this Service Plan from Fort Collins in the form to be attached hereto as Exhibit A. Should the purposes of the District change materially from what is stated herein, it shall be considered to be a material modification of this Service Plan which shall require advance approval by Fort Collins. It is the District's intention to construct capital facilities, and where possible, to convey those facilities to existing governments for operations and maintenance. In this manner, Fort Collins can be is assured that property owners within the proposed District will not pay for duplicated efforts of overlapping jurisdictions. The City will be able to collect stormwater monthly operations and maintenance fees, as well as stormwater monthly capital and new development fees within the District. B. Need for District. The City will provide neighborhood and community parks as presently contemplated by the City. Except for these parks, there are currently no other entities in existence in the area of the District which have the ability and/or desire to undertake the design, financing and construction of improvements needed for the project. It is the petitioners' understanding that Fort Collins does not consider it feasible or practicable for it to provide the necessary services and facilities for the project depicted in Exhibit E hereof and described herein. Inasmuch as existing entities are unable or unwilling to construct capital facilities, formation of the District is necessary for the provision of public improvements needed for the project in the most economic manner possible. 2 C. General Powers. The proposed District will have power and authority to provide the services and facilities generally described in this Service Plan. 1. Specific Powers. The District shall have authority to construct, operate and maintain the services and facilities described below. Necessary funding will be provided by the issuance of general obligation bonds by the District as described in the Financing Plan contained herein. The following general descriptions of the powers of the District are intended to define the scope of activities which may be undertaken by the District. Section IV below contains more detailed descriptions of the specific improvements, design criteria and dedication requirements for these facilities. a. Streets. The design, acquisition, installation and construction of street and roadway improvements, including but not limited to curbs, gutters, culverts and operation and maintenance of storm sewers and all drainage facilities, detention ponds, retaining walls and appurtenances and entry monumentation, as well as sidewalks, bridges, parking facilities, paving, lighting, grading, landscaping, snow removal equipment, and other street improvements, together with all necessary, incidental, and appurtenant facilities, land and easements, together with extensions of and improvements to said facilities. b. Parks and Recreation. The design, acquisition, installation, construction, operation and maintenance of public park and recreation facilities or programs including, but not limited to, swimming pools and spas, tennis courts, exercise facilities, bike paths, hiking trails, pedestrian trails, picnic areas, skating areas and facilities, common area landscaping and weed control, outdoor lighting of all types, community events and other facilities, together with all necessary, incidental and appurtenant facilities, land and easements, and all necessary extensions of and improvements to said facilities or systems. 2. Miscellaneous Powers. The powers of the District will be exercised by its board of directors to the extent necessary to provide the services contemplated in this Service Plan. The foregoing improvements and services, along with all other activities permitted by law, will be undertaken in accordance with, and pursuant to, the procedures and conditions contained in the Special District Act contained in Title 32, C.R.S., other applicable statutes, and this Service Plan, as any or all of the same may be amended from time to time. In addition to the powers enumerated above, the board of directors of the District shall have authority to exercise all necessary and implied powers under Title 32, C.R.S. in the reasonable discretion of the board of directors of the District. 3 III. BOUNDARIES; POPULATION AND ASSESSED VALUATION ESTIMATES A. General. The service area of the District shall include all real property within the boundaries of the District, as more particularly depicted in the map contained in Exhibit C. A legal description of the District's boundaries is attached as Exhibit B. B. Changes in Boundaries. The District shall obtain written approval from Fort Collins prior to seeking a change in its boundaries. Changes may be approved by Fort Collins and shall not be considered to be a material modification of this Service Plan if approved by Fort Collins by administrative action. C. Population and Assessed Valuation Estimates. An estimate of projected assessed valuation within the District is set forth in Exhibit G which contains the Financing Plan for the District. Richard's Lake will consist of residential development, and at buildout the population of the District is estimated to be 1,700 persons. The 1997 assessed valuation for all property within the boundaries of the proposed Richard's Lake Metropolitan District was approximately $18,700. IV. DESCRIPTION OF PROPOSED FACILITIES This section describes the key facilities and improvements expected to be provided by the District. The following general descriptions of improvements are preliminary only and will be subject to modification and revision as engineering plans, financial factors and construction scheduling and costs may require, and subject to the overall limitations on the powers of the District set forth in Section II hereof. Improvements not specifically described herein shall be permitted as long as they are generally contemplated in Section II hereof. Should the types of improvements materially change from what is stated in Section II of this Service Plan, it shall be considered a material modification of this Service Plan. Exhibit E contains general layouts of the key proposed improvements. Exhibit F sets forth the projected capital costs by phase for the District. Cost estimates for such improvements are depicted in the Financing Plan, as shown in Exhibit G. The total estimated cost of improvements is approximately $2,742,961, exclusive of inflation and contingencies. Fort Collins shall not be responsible for assuming any of the costs of the improvements. All facilities described herein will be designed and constructed according to the applicable standards of the City of Fort Collins. All descriptions of the specific facilities and improvements to be constructed, and their related costs, are estimates only and are subject to modification as 4 engineering, development plans, economics, Fort Collins' requirements, and constructing scheduling may require. A. Street Improvements. Street improvements include the local and collector streets shown in Exhibit E, together with drainage improvements. After conveyance by the developer of the street rights-of-way or appropriate easements to the District, the District is expected to construct street curbs, gutters, culverts, drainage ditches, sidewalks, box culverts, tunnels, paving, lighting, landscaping and other road, street and drainage facility improvements which the project will require, as well as necessary traffic and safety protection devices and controls. 1. Roadway Infrastructure. All public streets and streets dedicated by plat within the District will be maintained by Fort Collins after acceptance. This will include all roadway infrastructure as it is completed and accepted by Fort Collins 2. Drainage Facilities. All storm drainage facilities outside the street row will be owned, operated and maintained by the District thus eliminating any potential burden on Fort Collins for these costs. The District will construct the storm sewer line from the intersection of Morningstar Way and Somerset Drive to the east and south until it connects with Morningstar Drive. Developers shall be responsible for the construction of all other storm drainage facilities although the facilities will be turned over to and operated by the District. 3. Cost Estimates. The estimated construction costs for the development of the roadway system and drainage facilities for the project are shown on Exhibit F. B. Park and Recreation Improvements; Landscaping. The park and recreation improvements expected to be constructed and maintained within the District include pocket parks, major street landscaping, a recreation center and trails improvements. The District shall work in conjunction with the City as to the timing and construction of the neighborhood park. The park and recreation improvements described in this section are to be provided by the District without use of neighborhood or community park impact fee revenue. The District acknowledges that dwelling units in the District must pay City impact fees, including fees for the neighborhood park and community parks. The District will work with the City to explore opportunities to locate a neighborhood park within the District and to coordinate the design of the District's park and recreation facilities so they are compatible with the design of the neighborhood park. The neighborhood park constructed in the District will be a public park open to District and non-District residents. 5 1. Parks. The park improvements anticipated to be constructed are primarily "pocket parks" within development parcels and may consist of irrigated turf, hardscape, walkways, shrubs, mulch beds, amenity features such as picnic tables, signage, etc., and other uses consistent with neighborhood parks. 2. Recreation. Recreation improvements are depicted in Exhibit E consisting of a community center, tennis courts, swimming pool and related amenities. 3. Trails. The trails are proposed to provide linkage between the major development parcels and other major roadways or other features within the property or immediately adjacent thereto. The trail system is anticipated to include a combination of concrete walkways, gravel trails, necessary signage and identification markers and other ancillary trail hardscape such as benches and tables. 4. Street Landscaping. The major streets are anticipated to have landscaping along both sides and any medians. This landscaping may consist of required fencing, identification markers, shrub and flower beds, mulch beds, irrigated and non- irrigated turf and native grasses, subdivision identification markers, trees, and other landscape features commonly associated with streetscape design. 5. Cost Estimates. The estimated construction costs for the development of the park and recreation improvements are shown on Exhibit F. C. Cost Estimate Summary. The cost estimates for all improvements summarized in Exhibit F are based on quantities taken from preliminary development plans and preliminary utility and drainage plans. The unit prices, based on recent bids or contracts, were multiplied by the individual quantities. A 15% contingency was added to the subtotal to arrive at the total cost estimates. D. Construction Standards. The District shall ensure that any proposed improvements set forth in this Section IV will be designed and constructed solely in accordance with the standards and specifications set forth by the entity to whom the facilities will be dedicated for operations and maintenance, including the District. The District will obtain approval of civil engineering plans and a permit for construction and installation of improvements from Fort Collins. E. Dedication of Improvements. The District shall dedicate or cause all of the public water and wastewater improvements, all public streets and streets dedicated by plat and all public sidewalks as well as all rights-of- way and easements necessary for access to these facilities to be conveyed to the entity responsible for operations and maintenance upon completion of construction and installation. All storm drainage facilities outside the public streets will be owned, operated and maintained by the 6 District. Failure to comply with the dedication of improvements set forth in this section shall be deemed to be a material modification of this Service Plan. F. Ownership/Operation of Facilities by District. Except for facilities and improvements described in this Section IV, the District shall not be authorized to own or operate facilities to be provided pursuant to this Service Plan, other than as necessary to permit the financing and construction thereof, except through approval by Fort Collins of an amendment to this Service Plan. The District shall have authority to operate and maintain the improvements described in this Section IV. Some of the improvements are expected to be turned over to the City of Fort Collins, or a homeowners' association, if any, for operations and maintenance. The park and recreation improvements, all landscaping improvements, pocket parks and trail systems to be provided by the District will be retained by the District and will be operated and maintained by the District either directly or through a homeowner's association. The storm drainage facilities, including the five detention ponds, all inflow and outflow sewers and storm inlets will be operated and maintained by the District. The District may contract with homeowner associations for operation of the park and recreation facilities. Other improvements not to be dedicated or accepted by other entities, but to be constructed and owned by the District, include entry features, pocket parks, and trails located outside of Fort Collins rights-of-way. G. Services of District. The District will require funds to plan and cause the facilities contemplated herein to be completed. Such costs are expected to include reimbursement of organizational costs, legal, engineering, accounting, bond issuance costs and compliance with state reporting and other administrative requirements. The first year's operating budget is estimated to be $30,800. An overall financing plan showing the anticipated operating costs, phasing of bond issues, and related matters is attached as Exhibit G. V. FINANCIAL PLAN A. General Plan of Finance. The total estimated cost of the facilities is approximately S3,155,000 in 1998 dollars. The District's combined new money general obligation debt limitation ("debt limitation") will be $4,000,000 to account for inflation, costs of issuance and other similar expenses. Increases in debt necessary to accomplish a refunding, reissuance or restructuring of debt, and bonds payable from sources other than ad valorem taxes, shall not count against the debt limitation. Any other change in the debt limitation shall be considered a material modification of the Service Plan. The debt limitation shall not be increased unless approved by Fort Collins and as permitted by statute. 7 It is currently anticipated that the District will issue general obligation bonds in amounts sufficient to permit the District to construct needed facilities. Initial bond issues are estimated to occur in 1999 in the approximate amount of$1,000,000, followed by issues in 2000 and 2002. The initial series of bonds will be purchased by the developer. All bonds will be paid subject to debt service mill levy caps discussed below. The maximum term for District Bonds, inclusive of refundings shall not extend beyond 30 years from the date of fast issuance by the District. These caps will remain in place in perpetuity thus protecting property owners from unreasonable debt service mill levy increases and extended debt. The timing of issuance of bonds will be adjusted from time to time to meet development requirements. All bonds will be issued in compliance with applicable state law. Attached to this Service Plan as Exhibit G is a Financing Plan of the District which shows how the proposed services and facilities may be financed and operated by the District. The Financing Plan identifies the proposed debt issuance schedules of the District. All bonds issued by the District will be payable from general ad valorem debt service taxes to be imposed upon all taxable property within the District which may not exceed 25 mills, subject to adjustments to take into account the impact of the Gallagher Amendment to the Colorado Constitution. In addition to the bonds described above ("Senior Bonds") the District shall have the authority to issue subordinate general obligation bonds for any interest which accrues on the Senior Bonds but which cannot be paid as a result of the debt service mill levy cap ("Subordinate Bonds") in the event the development projections are not fully realized and the District is not able in some years to pay all principal and interest. Interest will not compound on accrued but unpaid 'interest. This feature will help protect property owners from changes in the pace of development of the project which may have an impact on the ability of the District to pay bonds from capped mill levies. In no event shall debt of the District extend beyond 30 years from the date of the initial issuance of each series of bonds. This assures that the District will be free from debt within a reasonable period of time. The 25 mill debt service levy limit shall be subject to adjustment if the laws of the State change with respect to the assessment of property for taxation purposes, the ratio for determining assessed valuation changes, or other similar changes occur. In these events, the cap will be automatically adjusted so that the tax liability of individual property owners neither increases nor decreases as a result of any such changes thereby maintaining a constant level of tax receipts of the District and overall tax payments from property owners. The Financing Plan demonstrates one method that might be used by the District to finance the cost of infrastructure. At the time bonds are proposed to be issued, alternative financing plans may be employed and utilized by the District so long as the constraints of this Service Plan have been met. Due to the support expected to be received from the developer, the Financing Plan demonstrates that the cost of infrastructure described herein can be provided with reasonable mill levies assuming reasonable increases in assessed valuation and assuming the rate of build-out estimated in the Financing Plan. In no event will bondholders be entitled to payments in excess of what the debt service mill levy cap will produce, thus permitting the District to be viable in all circumstances. 8 B. Operating Costs. In addition to showing the anticipated bond issues of the District discussed in the preceding section, the Financing Plan includes the proposed operating revenue derived from ad valorem property taxes for the first budget year. Other operating costs will be assumed and paid only as cash flow permits. C. Other Financial Information. Upon approval of this Service Plan, the District will continue to develop and refine cost estimates contained herein and prepare for bond issues. All cost estimates will be inflated to then-current dollars at the time of bond issuance and construction. All construction cost estimates assume construction to applicable local, state or federal requirements. In addition to ad valorem property taxes, and in order to offset the expenses of the anticipated construction as well as operations and maintenance, the District will also rely upon various other revenue sources authorized by law. These will include the power to assess fees, rates, tolls, penalties, or charges as provided in § 32-1-1001(l), C.R.S., as amended from time to time. The Financing Plan assumes various sources of revenue, including ad valorem property taxes, specific ownership taxes, facilities fees, and user charges, together with interest earnings on retained amounts. The Financing Plan does not project any significant accumulation of fund balances which might represent receipt of revenues in excess of expenditures under the TABOR Amendment. To the extent annual district revenues exceed expenditures in this manner, the District will comply with the provisions of TABOR and either refund the excess or obtain voter approval to retain such amounts. Initial spending and revenue limits of the District, as well as mill levies, will be established by elections which satisfy TABOR requirements. The estimated costs of the facilities and improvements to be constructed and installed by the District, including the costs of engineering services, legal services, administrative services, initial proposed indebtedness, and other major expenses related to the facilities and improvements to be constructed and installed, are set forth in Exhibit F of this Service Plan. The maximum voted interest rate on bonds will be 18%. The proposed maximum underwriting discount will be 5%. It is estimated that the general obligation bonds, when issued, will mature not more than twenty (20) years from date of issuance, with the first maturity being not later than three (3) years from the date of its issuance, as required by statute. The estimated costs of the organization and initial operation of the District through December 31, 1998 including legal, engineering, administrative and financial services, are expected to be approximately $100,000. The District out of its initial revenue sources including bond issue proceeds will reimburse organizational costs to the developer. The District is also expected to acquire completed improvements from the developer with bond proceeds. 9 D. Elections and Conditions on Exercise of Financial Powers. The District may obtain authorization from its electorate at elections scheduled on legally permitted dates for general obligation bonds and other matters summarized below. VL GENERAL MATTERS A. Elections. Following approval of this Service Plan by Fort Collins, and after acceptance of the organizational petition and issuance of orders from the District Court, elections on the questions of organizing the District and approving bonded indebtedness and various matters described herein will be scheduled. All elections will be conducted as provided in the Court orders, the Uniform Election Code of 1992 (as substantially amended by House Bill 93-1255), and the TABOR Amendment, and are currently planned for November 3, 1998, but may be held on any legally permitted date. The election questions are expected to include whether to organize the District, election of initial directors, and TABOR Amendment ballot issues and questions. The ballot may deal with the following topics (in several questions, but not necessarily using the exact divisions shown here): 1. Whether to organize the District; 2. Membership and terms of the initial board members; 3. Approval of new taxes; 4. Approval of maximum operational mill levies; 5. Approval of bond and other indebtedness limits; 6. Approval of an initial property tax revenue limit; 7. Approval of an initial total revenue limit; 8. Approval of an initial fiscal year spending limit; and 9_ Approval of a four-year delay in voting on ballot issues. Future elections to comply with the TABOR Amendment are anticipated and may be held as determined by the elected Board of Directors of the District. 10 B. Modification of Service Plan. The District shall obtain the prior approval of Fort Collins before making any material modifications to this Service Plan. Material modifications shall include modifications of a basic or essential nature including any additions to the types of services initially provided by the District, change in debt limit, change in revenue type, or change in the debt service mill levy limit. The examples above are only examples and are not an exclusive list of all actions which may be identified as a material modification. Fort Collins approval shall not be required for mechanical modifications to this Service Plan necessary for the execution of the Financing Plan for public improvements previously outlined herein. C. Resolution of Approval. The proposed District agrees to incorporate the Fort Collins City Council's Resolution of Approval, including any conditions on such approval, into the Service Plan presented to the appropriate District Court. Such resolution shall be attached as Exhibit A. Attached to the Resolution of Approval in Exhibit A, is an agreement ("Resolution of Approval Agreement ) that the Board of Directors will enter into at their first organizational meeting limiting the actions the District may take until this Service Plan is amended and/or an agreement is entered into between Fort Collins and the District addressing the participation in regional infrastructure and other issues. The District shall be bound by the limitations set forth in the Resolution of Approval Agreement. A failure to execute the Resolution of Approval Agreement will be considered a material modification of this Service Plan. D. Disclosure. The petitioners for organization of the District will make a good faith effort to assure that the developers of the property located within the District provide adequate written notice to purchasers of land in the District regarding taxes, charges, or assessments which may be imposed in connection with the District. For purposes of this section, a good faith effort shall mean that the directors of the District shall notify homebuilders as to the existence of the District, present tax levy, average expected tax levy, maximum expected tax levy, and maximum allowed tax levy, and shall request such homebuilders to provide such information to home purchasers. VII. CONCLUSION It is submitted that this Service Plan for the District, as required by § 32-1-203(2), C.R.S., has established that except for neighborhood and community parks, and trails connected with the City trail system : (a) There is sufficient existing and projected need for organized service in the area to be serviced by the District; 11 (b) The existing service in the area to be served by the District is inadequate for present and projected needs; (c) The District is capable of providing economical and sufficient service to the area within its proposed boundaries; (d) The area to be included in the District does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis; (e) Adequate service is not, and will not be, available to the area through Fort Collins, or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis; (f) The facility and service standards of the District are compatible with the facility and service standards of Fort Collins within which the District are to be located and each municipality which is an interested party under § 32-1-204(1), C.R.S.; (g) The proposal is in substantial compliance with a master plan adopted pursuant to § 30-28-108, C.R.S.; (h) The proposal is in compliance with any duly adopted county, regional, or state long-range water quality management plan for the area; and (i) The creation of the District is in the best interests of the area proposed to be served. Therefore, it is requested that the Fort Collins City Council, which has jurisdiction to approve this Service Plan by virtue of §§ 32-1-201, C.R.S., et seq, as amended, adopt a resolution which approves this Service Plan for the District as submitted. Respectfully submitted, WHITE AND ASSOCIATES Professional Corporation �6 By. e Counsel r titioners RLMD\S PLAMSAM 1529090398 0443.0003 12 EXHIBIT A City Council Resolution of Approval AGREEMENT CONCERNING CREATION OF RICHARDS LAKE METROPOLITAN DISTRICT THIS AGREEMENT is made and entered into this day of 1998, by and between Richards Lake Metropolitan District, a quasi-municipal corporation of the State of Colorado ("the District"), and the City of Fort Collins, a Colorado home rule municipality ("the City"). WHEREAS, the District has previously submitted a "Service Plan for Richard's Lake wletrovolitanDistrict" dated 1998("the Service Plan") to the Fort Collins City Council("the Council") for its review and approval in accordance with C.R.S. Section 32-1-204.5; and WHEREAS,on September 15, 1998,the Council adopted Resolution 98-_approving the h. Service Plan on the condition that the District enter into this Agreement with the City at its first organizational meeting ("the Resolution"); and WHEREAS, the City desires that the Service Plan be modified to include an obligation for t c District to participate with the City in the planning and construction of off-site infrastructure related to the development of the northeast area of the City, which off-site infrastructure shall include, without limitation, transportation and stormw•ater facilities, ("the Tnfrastructure"); and WHEREAS,the City and the District are not yet able to determine the nature of the District's participation in the Infrastructure and desire to continue discussions in that regard leading to an amendment of the Service Plan to address the Infrastructure ("the Amended Service Plan"); and WHEREAS,the parties desire to enter into this Agreement,which suspends the power of the District as hereinafter pro%ided until such tir ne as the Amended Service Plan has been approved by _ Council, NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acl,anowledoed, the parties hereto agree as follows: 1, Until such time as the Amended Service Plan has been reviewed and approved by the Council (which approval shall be within the sole discretion of the Council), thereby implementing the plans to be developed for the participation by the District in the planning, design, financing and const-,action ofthe Infrastructure, the District agrees as follows: A. That the statutory powers of the District and its rights under the Service Plan shall be suspended entirely with tiie sole exception of the completion by the District of such activities as are mandated by statute L-i connection with the following:budgets, audits, the conduct of elections and other similar administrative matters; and 7 1 i i bte-UJ-Inb IHu U1 FM UIIY Hr -IKNKYS I � 1 � I :' 1 13. That the District shall not issue any of the debt authorized to it in the November 3, 1998, election or any subsequent election. 2. If the Amended Service Plan is not so approved by the Council by June 1, 1999,the District shall be dissolved without delay. In order to implement the foregoing; the District agrees : that it shall initiate dissolution proceedings and shall seek not later than thirty(30)days after `I June 1, 1999,an order from the Larimer County District Court dissolving the District. In the event the District fails to so initiate such dissolution proceedings, this Agreement shall constitute the designation of the City as the lawful agent and attorney-in-fact of the District sufficient to permit the City to obtain such dissolution order on behalf of the District. The District agrees that it shall cooperate in all respects in connection with such activities and shall pay all costs incurred by the City, including reasonable attorney's fees, in connection with obtaining such order of dissolution. 3. This Agreement shall be construed in accordance with the laws of d-1e State of Colorado, and the City shall be entitled to enforce the terms of this Agreement by an action seek.ng specific performance, including the entry of a writ of mandamus, to compel the District to perform the action contemplated herein. The District further agrees to pay all costs incurred by the City, including reasonable attorney's fees, in connection with enforcing the tcr_ns of this Agreement. .he District acknowledges and agrees that performance of this Agreement by the District is in furtherance of the Couricil's expressed condition pursuant to which the Service Plan was approved in the Resolution. 5. This Agreement shall terminate upon satisfaction of the conditions set forth in paragraph I above, such satisfaction to be evidenced by receipt by the District of a letter from the For Collins City Attorney stating that the City Council has approved the Amended Service Plan. Thereafter, the District shall have furl power and author.R to implement the Amcndcd Service Plan in the man_nor permitted by applicable law. This Agreement shall be construed according to its fair m. ariirg and as if prep red'ov both parties hereto,and shall be deemed to be and contain the entire understanding and agreement between the parties hereto. There shall be deemed to be no other terms, conditions, promises,understandings,statements or representations,express or implied,concerning this Agreement unless set forth in writing and siencd by both of the parties hereto. 7. If any provision of this Agreement, or the application of such provision to any person,el;tity or circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provisions to persons,entities or circumstances other that those in which it was held invalid, shall not be affected. � Y I�. 'll i I br.e-uj-tayb 1Ku ul :u2 M CI'FY PTTORNEYS OFFICE FP,X NO, 19702216327 P. 04 in the event either of the respective parties hereto shall default any of their covenants or obligations herein provided and the party not involved commences legal or equitable action against the defaulting party, the defaulting party expressly agrees to pay all of the non- defaulting party's reasonable expenses in any such litigation,including a reasonable sum for attorney's fees. 9. This Agreement shall be binding upon the parties hereto and their respective successors and assigns. IN WITNESS WHEREOF the parties hereto have executed this Agreement as oft^.c date and :'Dove written. RICHARD'S LAKE i41ETROPOLITAN DISTRICT, A Colorado Quasi-Municipal Corporation By: President -`7TEST: Secretary CITY OF FORT COLLI`S A Municipal Home Rule City Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 3 ' .i{ v I,. if RESOLUTION 98- OF THE COUNCIL OF THE CITY OF FORT COLLINS CONDITIONALLY APPROVNG THE SERVICE PLAN FOR RICHARDS LAKE METROPOLITAN DISTRICT r , WIIEREAS, there has been presented to the Council of the City of Fort Collins ("the Council")for its consideration in accordance with the provisions of Title 32, Article 1,Part 2 of the Colorado Revised Statutes,as amended,the"Service Plan for Richards Lake Metropolitan District' ? , 1998 ("the Service Plan")- and WHEREAS,pursuant to the provisions of Title 32,Article 1,Part 2 of the Colorado Revised Statutes, as amended, the Council held a public hearing on March 17, 1998, and continued to September 15, 1998, regarding consideration of the approval of the SeMce Plan; and WHEREAS, notice of this hearing was duly published in tl,.e Fort Collins Coloradoan, a newspaper of general circulation within the City of Fort Collins, on February 2T, 1998, as required by law, and such notice was sent to the petitioners seeking approval of the Service Plan for the proposed Richard's Lake Metropolitan District("the District'), and to the governing body of any rr.'stir_R municipality located within a radius of three (3) miles of the District and to any special s ­ict which has levied an ad valorem tax within the next preceding tax vcar and which is also located within a radius of three (3) miles of the District; and WHEREAS, said notice of hearing was also sent to the Colorado Division oC Local Government and to all property owners within the boundaries of the District and to the owners of real property located within three (3) miles of the boumdaries of the District; and i+ pr WIIEREAS, the Council has considered the Scr—iee Plan and all of the testimony and evidence presented at the Hearing; and REAS, it appears to the Council that t,": S:rvicc Plan should be approved on the condition that the"Agrecmcnt Concerning Creation of Richards Lake Metropolitan District"wliich is attached hereto as Exhibit A and incorporated herein by reference ("the Agrccmont°) is entered into by the District at its first organizational n:eetiug NOW, THFREFORF, BE IT RESOLVED BY •£IIE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby determines that all of the requirements of Title 32, Article 1, Part 2 of the Colorado Revised Statutes, as amended, relating to the filing of the Service M for the District have been fulfilled and that the notice of the hearing was given in the time and manner required by law. f J �I ?-.3-1998 THU 01 :32 PM CITY ATTORNEYS OFFICE - .X NO. 19702216327 P. 06 Section 2. That the Council hereby finds and determines that: A. There is sufficient existing projected need for organized services in the area to be served by the District; B. The existing service in the area to be served by the District is inadequate for present ; y. and projected needs; C. The District is capable of providing economical and sufficient service to the area within its boundaries; and D. The area to be included in the District has, or will have, the financial ability to discharge the proposed indebtedness of the District on a reasonab''c basis. r Section 3. That the Council's approval in this Resolutioin of the Service Plan is expressly conditioned upon the Agreement being entered into with the City by the District at the District's first ' organizational meeting, The Agreement restricts the action the District may undertake until an amendment to the Service Plan, as contemplated in the Agreement, is approved by the Council, in �e exercise of its sole discretion, by the adoption of a resolution approving the amerdments to the Service Plan. If such resolution is trot adopted by the Council on or bei'ore June 1, 1999, then the Council's approval in this Resolution of the Service ?!an shall be declined null and void and the District shall thereafter be dissolved pursuant to Title 32, Article 1, Part 7 of the Colorado Revised Statutes, as amended, in accordance with the terms of the Agreement. Section 4. That notwithstanding the provisions in Section 3 above to the contrary,the City Manager is hereby authorized to execute on behalf of the City such future addenda to the Agrcemcm as he deems to be in the best interest of the City and necessary in order to extend the June 1, 1999, deadline for the Council's approval of the aniendmcrts to the Service Plan as required by the Agreement. However, in so amending the Agree- en', tI:e City Manager shall not extend such deadline beyond December 31, 1999. Passed and adopted at a rceular meeting of the C'ty Council geld this I5th day of September A.D., 1998. Mayor ATTEST: City Clerk i i i EXHIBIT B Legal Description (Legal Description) RICHr'1RDS LSE PARCEL P. TPACT OF LAND SITUATE Iti TFiE SOUTH. 1/2 Or SECTION 301 TOWNSHIP 8 NORTH, RANGE 6B WEST OF THE 6TH PP..INCIPAL :iERIDIA:{f CIi'Y OF FORT COLLINS, C=iTY OF LA.RII`U R, STATE OF COLOIRADOr M-11CH, COYSIDERING THE SOUTH LINE OF THE SOUTHEAST 1/4 OF SAID . ` SPCTIO?I 30 AS BRA.RING So�'i"�? 89 DEGREES 36 MINUTES 43 SECONDS WZ5'-, R.ND NI'rH ALL BEARINGS CONTAINED A±RE1.11 RELATIVE THERETO, LZGT_NS AT THE SOUTH 1/4 CrPIIZR OF SAID SErTION 30 AND RUNS TIi1:?ICL V-7ST 246. 90 FZET; 113ILNC:E NORTH 53 DEGRL• E5 15 )111TUTES 06 SECONDS WEST 112 . 02 FEET; - TFZNCE NORTH 403 . 07 FEE': TO THE BOUNDARY OF RICRARDS LANE; T111-NCE AIANG SAID BOGNDARY CF RIC':rMS LAKE 1,ORTH 41 ]DEGREES 24 MINUTES EAST, 300 FEET RIND AGAIN NORTH 06 DEGREES 38 MINUTES WEST 300 . 00 FEET AND AGAIN ?,'ORT11 45 DEGREES 30 MINUTES WEST loco . Cc FEET; 'EL:tiCE NC11T.1 21 DEGREES 00 HINUTES EAST 259 . 05 FEET; T![:-2= ALC`,G THE ARC OF A ?ION-TANGENT 480 . 00 FOOT RADIUS CURVE ;TC rii:; LE-i A DISTP-NCE, 0: 751. 61 7ZE;', TF'.':. LONG CVORD OF WHICH IISi1_ZII GCRTi: 53 DEGR=S 21 :I:?:UTES :1 SECONDS ZLST 677 . _S FEET, =11 ;ICR—"! 40 DEGR 1 'II?TUTUS EAST 365 . 00 FEET; :ii ;CE EA 7. 15 . 00 FEZ=; i".: iCS .' TZ7:-i 69 D CZ'S 50 ZTN� :TCS 20 677=2:)S EB.ST 2445 . 05 F ?: P:_-1._ SO -;.S: 1/4 of SAID S:i TH 00 D%GREtS C5 !i;ii' '.:S 13 S E C.iF, i Z T 135 . 00 FEr" , fIN ^1ES 20 SECO:iDS ZAS: 200. 00 FEL"i 0 Ii'.E EIS: LI?it OF SAID SCUIHFJ�Si 1/ 4 ; CE LONG szl'= EAST LINZI SOUTH 00 D EGR;,ES C6 HINL^TES 13 :327C0ti05 WEST 2488 . 25 FEr:T .J TH.E SOU'1'HZA.ST CO LN ..R OF SAID ST-CTION 20 ; 1:IL'*iC� A.LGNG THE SO!'TH LI. OF SAID SUU"_EIZAST 1/4 , SOUTH 89 DIEOPEES 56 HI?iUTES 43 SECONDS WEST 2641 . 06 FELT TO T1IE POINT OF DEGIZIN-71110 , COL^.i'TY C 11L.T_i �, STIN 0: =40RA00. EXHIBIT C Boundary Map << Gb'GN 4ZNn00 I I I I � I Ic I I � j I I � � IIo I I � 1 l5 I 0 Z 2 EXHIBIT D Statutory Contents of Service Plan 1. A description of the proposed services; 2. A financial plan showing how the proposed services are to be financed; 3. A preliminary engineering or architectural survey showing how the proposed services are to be provided; 4. A map of the district's boundaries and an estimate of the population and valuation for assessment of the district; 5. A general description of the facilities to be constructed and the standards of such construction, including a statement of how the facility and service standards of the district is compatible with facility and service standards of Fort Collins and of special districts which are interested parties pursuant to §32-1-204(1), C.R.S.; 6. A general description of the estimated cost of acquiring land, engineering services, legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and initial operation of the district; 7. A description of any arrangement or proposed agreement with any political subdivision for the performance of any services between the district and such other political subdivision; 8. Information satisfactory to establish that each of the following criteria as set forth in §32-1-203, C.R.S.,has been met: (a) That there is sufficient existing and projected need for organized service in the area to be serviced by the district; (b) That the existing service in the area to be served by the district is inadequate for the present and projected needs; (c) That the district is capable of providing economical and sufficient service to the area within their proposed boundaries; (d) That the area included in the district has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis; (e) That adequate service is not, or will not be available to the area through Port Collins or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis; (1) That the facility and service standards of the district is compatible with the facility and service standards of Port Collins within which the district is to be located and each interested party under §32-1-204(1), C.R.S.; (g) The proposal is in substantial compliance with any master plan adopted pursuant to §32-28-106, C.R.S.; (h) That the proposal is in compliance with any duly adopted city, county, regional, or state long-range water quality management plan for the area; and (i) That the organization of the service district will be in the best interests of the area proposed to be served. 2 EXHIBIT E Facilities Diagram (IV06/ 2N0 \»)�\��\ �\�«. �/��� � lb CZ, IM Zs OC 14 Zt �Q k :it ELL ........... EXHIBIT F Estimated Capital Costs TST, INC. Consulting Engineers ESTIMATED CONSTRUCTION COST Client: Art Kleinstein Job No. 10-867-000 Date: 2/11/98 Project: Richard's Lake Metro District By: D.B.L. No. Item Quantity Units Unit Cost Total Comments STORM DRAINAGE FACILITIES 1. 18" RCP 1,757 L.F. $23.70 $41,641 2. 24"RCP 120 L.F. $30.00 S3,600 3. 24"ADS 1.025 L.F. $25.15 S25,779 4. 30"RCP 30 L.F. S36.20 $1,086 5. 36" RCP 2,570 L.F. $43.75 $112,438 6 42"RCP 370 L.F. S52.30 $19,351 7. 43x68 ERCP 284 L.F. S117.50 $33,370 S. 24"ADS FES 2 EA. $210.00 $420 9. 36"RCP FES 1 EA. $625.00 $625 10. 43x68 ERCP FES I EA. $700.00 $700 11. 4'DIA:VI. M.K 8 EA. $1,070.00 $8,560 12. TDIAI4M.H. 11 EA. $1,445.00 $15,895 1 13. 6'DIAIMM.H. 2 EA. $2,100.00 S4,200 14. 5'TYPE"R" INLET 8 EA. 52,230.00 S 17,840 15. 10'TYPE "R" LNLET 2 EA. I S3,260.00 $6,520 16. Detention Pond Outlet Structure 2 EA. 35.000.00 S 10.000 17. DETENTION POND GRADING 195.421 C.Y. 34.25 S830,539 Tract A&B ?on,is 13. DETENTION POND LANTDSCAPING I L.S. $105.500.00 $IOSS00 Tract A& B?ends j 19. CK �ti�L LtLoROVE�IENTS %70 1 L.F 1 `52.50 $1.b Subtotal 31,142.738 EROSION CONTROL I. CLASS 9 RIPRAP 5 C.Y $35.00 S175 2 CLASS 12 RIPRAP 17 C.Y. $45.00 $765 3. GRAVEL INLET FILTER 10 EA. 5230.00 S2,300 4. SILT FENCE 11,925 L.F. S2.00 523,850 5. STRAW BALE CHECK DA,L1 5 EA. S50.00 $250 6. GRAVEL OUTLET PIPE FILTER 2 EA. S150.00 S300 7. RESEED&MULCH 25 01 AC. 3650.00 S16.250 8. CONSTRUCTED WETLANDS 2.251 AC, S2,000.00 54,500 Subtotal S48,390 MORNINGSTAR DRIVE (Collector Street) L ASPHALT 46,460 SYI $1.50 $69,690 2. CLASS 6 BASE COURSE 3,442 C.Y. $16.50 $56,793 3. 6" VERTICAL C&G 6,060 L.F. S7.00 $42,420 4. SIDEWALK 30,300 S.F. $2.50 $75,750 5. HANDICAPPED RAMP 28 EA. S800.00 $22,400 6. EARTHWORK 26,290 C.Y. $2.50 $65,725 7. LANDSCAPING 1 L.S. $68,580.00 S68,580 Subtotal $401,358 MORNINGSTAR WAY (Local Street) L ASPHALT 13,433 SYI $1.50 $20,150 2 CLASS 6 BASE COURSE 995 C.Y. $16.50 $16,418 3. 6" VERTICALC&G 3,100 L.F. $7.00 S21,700 4. SIDEWALK 13,950 S.F. S2.50 $34,375 5. HANDICAPPED RAMP 8 EA. S800.00 S6,400 6. EARTHWORK 10,322 C.Y 32.50 S25,805 7. LANDSCAPING 1 L.S. S32,975.00 S32,975 Subtotal S158,322 SOMERSET DRIVE (Local Street) 1. ASPHALT 6,933 SYI S1.50 $10,400 2. CLASS 6 BASE COURSE 514 C.Y. S 16.50 S8,481 3. 6" VERTICALC&G 1,600 L.F. $7.00 S11,200 4. SIDEWALK 7,200 S.F. S2.50 $18,000 5. HANDICAPPED RAMP 4 EA. S800.00 S3,200 6. EARTHWORK 17,845 C.Y S2.50 S44,613 7. LANDSCAPING 1 L.S. S14,260.00 S14,260 Subtotal S110,1.53 RECREATION CENTER 1. Chan¢ut¢RocnuCommuruty Center _.000 S.c. S 125A0 S_50 000 POOL L.S K I40.Qti0 n0 S I4i.i00 PA.2<INGL(T I L.S 550.000.00 K5).0!) 4 BASKETBALL COT.-RT E a K 15.000 1)0 L. ISCO(.RT .i EA. S=1.000.00 S4_.O10 6, SOCCER GOAI EA. S1.000.00 K_.000 7. BASEBALL BACKSTOP I EA. K2.500.00 K2.500 8, PLAY STRUCTURE 1 EA. S 15.000.00 K 15.000 9. SAND VOLLEYBALL COURT EA. S4,000.00 $8,000 10. SHELTER 1 EA. $10,000.00 S 10,000 11. 12'PEDESTRL4,Ni TRAIL 8,000 S.F. $1.50 S 12,000 12. 5'CONCRETE TRAIL 4,000 S.F. $2.80 S11,200 13. aR.IGATION PUMP STATION 1 L.S. $58,000.00 $58,000 14. LANDSCAPING 1 L.S. S166,300.00 $166,300 Subtotal S782,000 CONSTRUCTION COST SUBTOTAL S2,742,961 CONTINGENCY (15%) S411,444.21 CONSTRUCTION COST TOTAL S3,154,406 2 TST, INC. Consulting Engineers ESTIMATED ANNUAL O &M COST Client: Art Kleinstein Job No. 10-867-000 Date: 2/16/98 Project: Richard's Lake Metro District By: D.B.L. No. Item Quantity Units Unit Cost Total Comments STREETS(Morningstar Dr.,Morningstar Way,Somerset Dr.) I LANDSCAPED PARKWAY 1.621 AC. I S1,000.00 ,860 Subtotal S4,360 STORM DRAINAGE FACII.PTIES 1. DETENTION POND LANDSCAPNG 9.65 S1,800.00 17,370 Tracts A,B,C.1- &L 2. POND OUTLET STRUCTURES 5 EA. 31,000.00 S5,000 Tracts A B.C.H,&L 3. INLETS 30 EA. S150.00 S4,500 4. STORM SEWER 9,710 L.F. S0.50 U 955 Subtotal 531,725 i i O& M COST SUBTOTAL S36,585 CONTINGENCY(15%) S5,488 O& M COST TOTAL S42,073 1 EXHIBIT G Financing Plan FEB 13 19B 02:30PN STAN BERNSTEIN&ASSOC P.2 Stan Bernstein and Associates, Inc. Financial Planners and Consultants For Local Governments, Municipal Bond Underwriters, and Real Estate Developers February 13, 1998 Mr. Art Kleinstein Wintergreen Homes 305 Madison Street Denver, Colorado 80206 Mr. Scott Price Stonebridge Properties, LLC 90 Madison Street, Suite 702 Denver, Colorado 80206 Dear Art and Scott: In accordance with your request Stan Bernstein and Associates, Inc. has assembled the following Cash Flow Forecasts (the "Financing Plan" ) for the proposed Richards Lake Metropolitan District (the "District" ) . The Financing Plan was assembled by Stan Bernstein based upon assumptions provided by others, and includes forecasts of ( i) the estimated residential buildout schedule (including related market values ) of property expected to be developed within the District ' s boundaries (Schedule 1 ) ; (ii) the District ' s operating revenues and expenditures (Exhibit I - General Fund) ; ( III ) the District ' s ability to pay the annual debt service on its proposed $2, 830, 000 of Limited General Obligation Bond Issues (Exhibit II - Debt Service Fund) ; and (iv) the District' s ability to provide capital financing for its proposed road, drainage, and recreation related infrastructure costs (Exhibit III - Capital Projects Fund) . The Financing Plan is presented in current, 1998, uninflated dollars . RESIDENTIAL BUILDOUT AND RELATED ASSESSED VALUATION AND MILL LEVY. Schedule 1 (pages 7 and 8) indicates that the primary land developers of land within the District (the "Developers" ) anticipate selling approximately 682 lots during the next seven years and expect these lots to be fully improved and built upon by December 31, 2005 . The Developers expect at full-buildout that the uninflated market value of these 682 residences will be approximately $116 million based upon an average uninflated market value per residence of approximately $170, 500. Ignoring the impacts of inflation, and based upon a 9.74% residential assessment rate, the District 's assessed valuation at full-buildout is forecasted to be approximately $11. 3 million. 707 Seventeenth Street,Suite 2900 Denver, Colorado 80202 (303) 291-0495 Telecopier: (303) 291-0625 e-mail: bernstel@ix.netcom.com 2606 Davos Trail Vail, Colorado 81637 FEB 13 '9e 02:30PM STAN BERNSTEIN&ASSOC P 3 Mr. Art Rleinstein Mr. Scott Price February 13, 1998, Page 2 Beginning for tax collection year 2001, it is assumed that the District will certify an annual combined mill levy of 35. 00. Ten mills will be used to fund the District's administrative, landscaping and drainage operating and maintenance related expenses. Twenty-five mills will be used to pay (i)the annual debt service requirements related to the District 's Series 1999, Series 2000, and Series 2002 Limited (i.e. limited to 25.00 mills) General Obligation Bonds in total amount of approximately $2, 830, 000, and (ii) accrued, but unpaid, interest on the Limited General Obligation Bonds in approximate amount of $725, 000 (i.e. , this represents the unpaid interest on the District's Limited General Obligation Bonds from 1999 through 2005 before the District' s 25 . 00 debt service mill levy generates sufficient cash to make interest payments on a current basis) . The financial impacts associated with the District's 35. 00 mill levy to the owner of a home valued at $170,500 is calculated to be approximately $581 . 00 annually or approximately $49. 00 per month (i.e. , approximately $32 . 00 per month on an "after tax basis" assuming a combined federal and state income tax bracket of 35%) . THE DISTRICT'S ABILITY TO FUND ITS OPERATING EXPENSES . The District' s ability to fund its operating expenses is presented on Exhibit I - General Fund Cash Flow Forecasts, pages 1 and 2 . Exhibit I indicates that the property taxes generated from a ten mill levy, combined with cash transfers from the District ' s Series 1999 and Series 2000 Limited General Obligation Bond Issues which will be used to defray operating costs during the construction period of the District, are forecasted to be sufficient to fund administrative, parkway landscaping, storm drainage maintenance, and miscellaneous other expenses during the analysis period. Ending General Fund Balances include ample reserves to meet the 3% Emergency Fund requirements pursuant to TABOR. THE DISTRICT'S ABILITY TO FUND ITS DEBT SERVICE REQUIREMENTS . The District 's ability to fund its operating expenses is presented on Exhibit II- Debt Service Fund Cash Flow Forecasts, pages 3 and 4 . Exhibit II indicates that beginning for tax collection year 2006, when full-buildout is expected to occur, the property taxes generated from a 25 . 00 mill levy are forecasted to be sufficient to pay the annual debt service requirements on the proposed Limited General Obligation Bonds (the "Bonds" ) . Prior to the year 2006, only a portion of the annual debt service requirements are forecasted to be paid and it is assumed that the unpaid balances, as set forth cumulatively on the bottom of Exhibit II, will be ultimately paid to the original purchasers of the District's Limited General Obligation Bonds after all of the Bonds have been redeemed. FES 13 '98 02:31PM STAN BERNSTEIN&ASSOC P 4 Mr. Art Kleinstein Mr. Scott Price February 13, 1998, Page 3 THE DISTRICT'S ABILITY TO FUND ITS DEBT SERVICE REQUIREMENTS (continued) . It is assumed that the District will sell its Bonds to the Developers, and that the Bonds will mature serially over a twenty year period and bear interest coupons averaging 7. 00%. It is assumed that the Series 1999 and Series 2000 Bonds will be issued on January 1 of those year, in amount of $965, 000 each year, and be used to pay for roadways, drainage, and landscape improvements. It is assumed that the Series 2002 Bonds will be issued on January 1 2002 and be used to pay for the Recreation Center and related landscaping and equipment costs . The Bonds are expected to be issued with a general obligation property tax pledge which will be limited to an annual debt service mill levy of 25. 00 mills, thereby offering residents within the District's boundaries protection against increases in their property taxes. THE DISTRICT'S CAPITAL IMPROVEMENT/INFRASTRUCTURE FUNDING PRCGRAM. The District ' s ability to fund its capital improvement and infrastructure is presented on Exhibit III - Capital Projects Fund Cash Flow Forecasts, pages 5 and 6 . Exhibit III indicates that the District expects to fund $2, 830, 000 of capital improvements during the next five years from the issuance of its Limited General Obligation Bonds . LIMITED FACTORS . The scope of Stan Bernstein and Associates, Inc. engagement was limited to assembling financial information based on assumptions provided by others ( i.e. , the Developers regarding buildout and market values, and TST, Consulting Engineers, regarding capital and operating costs ) . Stan Bernstein and Associates, Inc. has not independently evaluated, audited, examined, reviewed, or compiled the information or the assumptions presented in the Financing Plan and, consequently, disclaims any opinion with respect to the achievability of the results contained in the Financing Plan or the underlying assumptions. Furthermore, because of the inherent nature of financial forecasts, there will usually be differences between forecasted amounts and actual results because events and circumstances frequently do not occur as expected and those differences may be material. I will be happy to meet with you to discuss this letter and the accompanying Financial Plan with you in greater detail. Ver truly yours, Stan 13 n tein an Associates, Inc. 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