Metropolitan District - 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 Districts.
A metropolitan district is a special district that provides any two or more of the following services:
- Fire protection;
- Mosquito control;
- Parks and recreation;
- Safety protection;
- Sanitation;
- Solid waste disposal facilities or collection and transportation of solid waste;
- Street improvement;
- Television relay and translation;
- Transportation; and
- Water.
In accordance with the Districts’ Service Plan, the Districts may provide the following public improvements and services:
- Sanitation and Storm Drainage
- Water
- Streets
- Traffic and Safety Controls
- Parks and Recreation
- Transportation
- Television Relay and Translator
- Mosquito and Pest Control
- Security
- Covenant Enforcement
The Districts anticipate undertaking construction of the following categories of public improvements:
- Wastewater System;
- Storm Drainage;
- Portable Water System;
- Non-Potable Irrigation Water Systems;
- Street System and Traffic Safety; and
- Park and Recreation.
The Districts will provide the following ongoing services: operation and maintenance services for the above listed public improvements that are not dedicated to the City of Loveland.
By separate agreement, District No. 1 is anticipated to provide for the construction, operation and maintenance of the public improvements, and District Nos. 2 - 10 will assist in providing District No. 1 with funding for the public improvements and services.
- In accordance with the Districts’ Service Plan, the total amount of debt the Districts can incur to provide and pay for public infrastructure is as follows:
The maximum amount of Debt which may be incurred by the Districts collectively shall be $170,000,000, in 2019 dollars, as adjusted based on the Engineering News-Record’s Denver Builder Cost Index (“Debt Limit”).
- In accordance with the Districts’ Service Plan, the following revenue may be used to pay for the Districts’ debt:
All Debt issued by the Districts may be payable from any and all legally available revenues of the Districts, including general ad valorem taxes to be imposed upon all taxable property within the Districts.
- In accordance with the Districts’ Service Plan, the maximum mill levy the District may assess to pay for its debt is as follows:
The maximum mill levy each District may impose, for the payment of principal of and interest on Debt shall be 62 mills (the “Debt Mill Levy Cap”). Each District also may impose a mill levy to defray operations and maintenance expenses for each District, provided that such levy shall not exceed 25 mills (the “O&M Mill Levy Cap. The total mill levy imposed by each District shall not exceed 77 mills (the “Total Mill Levy Cap).
Property within District No. 10 is currently subject to a debt service mill levy imposed by Centerra Metropolitan District No. 2 (“CMD 2” and the “CMD 2 Mill Levy”). Upon exclusion of the property in District No. 10 from CMD 2 and Centerra Metropolitan District No. 4 (”CMD 4”) as described above, the property within District No. 10 will remain subject to the CMD 2 Mill Levy and the CMD 4 Mill Levy, if any. The property within District No. 10 was excluded from CMD 2 and CMD 4 on December 13, 2021. Until such time as the property within District No. 10 pays its proportionate share of indebtedness owed by CMD 2, the maximum mill levy District No. 10 may impose for the payment of principal of and interest on Debt shall not exceed 62 mills less the CMD 2 Mill Levy and CMD 4 Mill Levy if any, and the maximum mill levy District No. 10 may impose for the payment of principal of and interest on Debt and to defray operations and maintenance expenses combined shall not exceed 77 mills less the CMD 2 Mill Levy and CMD 4 Mill Levy, if any (“District No. 10 Mill Levy Caps”). At such time as the property located within District No. 10 is no longer subject to the CMD 2 Mill Levy and the CMD 4 Mill Levy, if any, the maximum mill levy District No. 10 may impose for the payment of principal of and interest on Debt shall not exceed the Debt Mill Levy Cap, the maximum mill levy District No. 10 may impose to defray operations and maintenance expenses shall not exceed the O&M Mill Levy Cap, and the total combined mill levy imposed by the District shall not exceed the Total Mill Levy Cap.
The Debt Mill Levy Cap, O&M Mill Levy Cap, Total Mill Levy Cap and District No. 10 Mill Levy Caps 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 any of these events, the Debt Mill Levy Cap, O&M Mill Levy Cap, Total Mill Levy Cap and District No. 10 Mill Levy Caps shall be automatically adjusted so that the collective tax liability of property owners within the Districts neither increases nor decreases as a result of any such changes, thereby maintaining a constant level of tax receipts of the Districts and overall tax payments from property owners
- Residents within each District 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.