Metropolitan District/Subdistrict – General Explanation
In accordance with Section 32-104.5(3)(X), C.R.S., the following general explanation in plain, nontechnical language, is provided. This information is intended to be read in conjunction with all applicable legal requirements, governing documents, agreements, resolutions, and determinations of the Boards of Directors of the District and the Subdistrict.
1. A metropolitan district is a special district that provides any two or more of the following services:
(a) Fire protection;
(b) Mosquito control;
(c) Parks and recreation;
(d) Safety protection;
(e) Sanitation;
(f) Solid waste disposal facilities or collection and transportation of solid waste;
(g) Street improvement;
(h) Television relay and translation;
(i) Transportation; and
(j) Water.
A subdistrict is formed by the board of directors of a special district (which includes a metropolitan district). A subdistrict is an independent quasi-municipal corporation, shall act pursuant to the provisions of the Special District Act, and shall possess all of the rights, privileges, and immunities of the special district. The subdistrict shall be subject to the service plan of the special district.
2. In accordance with the Service Plan, the District and the Subdistrict may provide the following public improvements and services:
The District and Subdistrict shall have the power and authority to provide public improvements and related operation and maintenance services within and without the boundaries of the District and the Subdistrict as such power and authority is described in the Special District Act, other applicable statutes, common law, and the Constitution of the State of Colorado, as the same currently exist and as may be amended from time to time in the future, subject to the following limitations:
(a) Fire Protection Restriction. The District and Subdistrict are not authorized to provide or maintain fire protection facilities or services. The authority to provide, operate or maintain fire hydrants and related improvements installed as part of the project’s water system is not limited by this restriction.
(b) Public Safety Services Restriction. The District and Subdistrict are not authorized to provide policing or other security services.
(c) Television Relay and Translation Restriction. The District and Subdistrict are not authorized to provide, operate or maintain television relay and translation facilities and services, other than the installation of conduit as part of a street construction project, unless otherwise approved by the Town Council in a Service Plan amendment.
(d) Potable Water and Wastewater Treatment Facilities. Acknowledging that the Town currently owns and operates treatment facilities for potable water and wastewater that are available to provide services to the District and Subdistrict’s Service Area, the District and Subdistrict shall not provide, operate or maintain such facilities without obtaining Town Council’s prior written approval either by intergovernmental agreement or as a Service Plan amendment.
As contemplated by the Service Plan, the District and Subdistrict anticipate providing storm sewer, sanitary sewer, water, trail, and park improvements.
The District and Subdistrict provide the following ongoing services: operation and maintenance services of public improvements owned by that District and Subdistrict and are not conveyed to and accepted by the Town or some other public entity.
3. In accordance with the Service Plan, the total amount of debt the District and Subdistrict can collectively incur to provide and pay for public infrastructure: $14,000,000
4. In accordance with the Service Plan, the following revenue may be used to pay for the District’s and Subdistrict’s debt:
All Debt issued by the District and Subdistrict may be payable from any and all legally available revenues of the District and Subdistrict, including general ad valorem taxes to be imposed upon taxable property within the District and Subdistrict. The District and Subdistrict will also rely upon various other revenue sources authorized by law. These will include the power to assess Fees including fees, rates, tolls, penalties and charges.
5. In accordance with the Service Plan, the maximum mill levy a District and Subdistrict may assess to pay for debt is as follows:
The Debt Mill Levy for the District shall not exceed 30 mills; provided that if, on or after January 1, 2024, there are Assessment Rate Changes, the mill levy limitation applicable to such Debt may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board in good faith so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for Assessment Rate Changes occurring after January 1, 2024, are neither diminished nor enhanced as a result of such changes.
The Subdistrict Debt Mill Levy for the Subdistrict shall not exceed 20 mills, provided that if, on or after January 1, 2024, there are Assessment Rate Changes, the ill levy limitation applicable to such Debt may be increased or decreased to reflect such changes, such increase or decreases to be determined by the Board in good faith so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for Assessment Rate Changes occurring after January 1, 2024, are neither diminished nor enhanced as a result of such changes.
Assessment Rate Changes mean (a) the laws of the State change with respect to the assessment of property for taxation purposes; (b) changes to the method of calculating assessed valuation; or (c) any other similar changes.
6. Residents within the District may serve on the Board of Directors of the District and Subdistrict if they are eligible electors of the District. A resident is an eligible elector of the District if the resident lives within the boundaries of the District and is registered to vote in Colorado. Pursuant to the Special District Act, the Board of Directors for the District shall also constitute the Board of Directors of the Subdistrict.