Pine Bluffs Metropolitan District

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 Board of Directors of the District.

1.  A metropolitan district is a special district that provides any two or more of the following services:

(a) Fire protection;

(b) Mosquito control;

(c) Parks and recreation;

(d) Safety protection;

(e) Sanitation;

(f) Solid waste disposal facilities or collection and transportation of solid waste;

(g) Street improvement;

(h) Television relay and translation;

(i) Transportation; and

(j) Water.

2.  In accordance with the District’s Service Plan, the District may provide the following public improvements and services:

(a) Safety protection;

(b) Street improvement;

(c) Transportation;

The District has completed all public improvements construction anticipated to occur within the District, which public improvements are owned and operated by other jurisdictions.

The District provides no ongoing services apart from landscaping within the District.  

3.  In accordance with the District’s Service Plan, the total amount of debt the District can incur to provide and pay for public infrastructure is as follows:

In no event shall the amount of the bonds which are secured by ad valorem property taxes outstanding at one time exceed four million six hundred sixty thousand dollars ($4,660,000). Such limitation shall not be applicable to refundings of the bonds authorized to be issued under the Service Plan.

4.  In accordance with the District’s Service Plan, the following revenue may be used to pay for the District's debt:

All bonds issued by the District may be payable from all legally available revenues of the District, including general ad valorem taxes to be imposed upon all taxable property within the District subject to the Mill Levy Cap limitation in #5 below.

5.  In accordance with the District’s Service Plan, the maximum mill levy the District may assess to pay for its debt is as follows:

For that general obligation debt, inclusive of general obligation refunding debt which exceeds fifty percent (50%) of the District's assessed valuation, the maximum mill levy the District can promise to impose for payment of such debt shall be thirty five (35) mills; provided, however, in the event of legislation implementing changes in the ratio of actual valuation to assessed valuation for residential real property, pursuant to Article X, Section 3(1)(b) of the Colorado Constitution, the mill levy limitation provided herein will be increased or decreased as to all taxable property in the District to reflect such changes so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted, are neither diminished nor enhanced as a result of such changes ("Mill Levy Cap"). For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation shall be deemed to be a change in the method of calculating assessed valuation.

At such time as the District's assessed value is equal to or greater than $10,000,000 and any general obligation debt, including general obligation refunding debt, is equal to or less than fifty percent (50%) of the District's assessed valuation, either on the date of issuance or at any time thereafter, the maximum mill levy the District can promise to impose for the payment of such debt shall be such amount as may be necessary to pay the debt service on such debt, without limitation of rate.

For purposes of the foregoing, once general obligation debt has been determined to be within the limitations set forth above so that the District is entitled to pledge to its payment an unlimited ad valorem mill levy, the District may provide that such debt shall remain secured by such unlimited mill levy, notwithstanding any subsequent reduction in the assessed valuation of the District.

Bonds may be privately placed in accordance with either Section 11-59-110(1)(g), C.R.S., or the regulations for placement of securities with an accredited investor in accordance with the Rules promulgated under the Colorado Municipal Bond Supervision Act, Section 11-59-101, as either is in effect on April 1, 2002; or may be issued to the Developer without regard to such statute or regulations; provided that such private placement or issuance shall be subject only to the Mill Levy Cap.

If the Developer advances funds to the District for the purpose of payment of principal and/or interest on any bonds or facilities, the obligation of the District to repay the Developer shall be subject to the limits set forth above and may be amortized over time, or paid at time of bond issuance so long as each payment obligation is subordinate to the annual debt service payments required to any third party bondholders.

6.  Residents may serve on the Board of Directors of the District if they are eligible electors of the District. A resident is an eligible elector of the District if the resident lives within the boundaries of the District and is registered to vote in Colorado.