TC Res. No. 2007-39 APPROVE MODEL SPECIAL DISTRICT SERVICE PLANTOWN OF AVON, COLORADO
RESOLUTION NO. 07-39
SERIES OF 2007
'A RESOLUTION TO APPROVE MODEL SPECIAL DISTRICT SERVICE PLAN
WHEREAS, pursuant to Ordinance No. 07-11 Series of 2007 (the "Ordinance"); the
Town Council of the Town of Avon approved a policy and procedures for the establishment of
special districts within the Town of Avon; and
WHEREAS, pursuant to the Ordinance, the Town Manager is to prepare a Model
Special District Service Plan; and
WHEREAS, the Town Manager has prepared and submitted to the Town Council a
proposed form of Model Special District Service Plan which the Town Council desires to
approve pursuant to this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF AVON, COLORADO:
Section 1. Approvalof Model Special District Service Plan. The form of the Model
Special District Service Plan attached hereto as Exhibit A is hereby approved.
Section 2.
passage.
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EAL
Effective Date. This Resolution shall take effect immediately upon its
this 27th day of November 2007.
TOWN VON, CC
C
Ronald C. Wolfe, May r
001024000\PUBFIN\73 5243.3
Exhibit A
Model'Special District Service Plan
00 1 024000\PUBFM735243.3
PUBFM722115.4
SERVICE PLAN
FOR
METROPOLITAN DISTRICT
Prepared
by
[NAME OF PERSON OR ENTITY]
[ADDRESS]
[ADDRESS]
[DATE]
Model Service Plan for
Special Districts inlown of Avon
Prepared Pursuant to
Town of Avon
Ordinance No. 07-11
Form Dated: '11/27/07
TABLE OF CONTENTS
I. INTRODUCTION 1
A. Purpose and Intent 1
B. Need for the District 1
C. Objective of the Town Regarding District Service Plans 1
D. Organizers and Consultants 2
E. Initial Board of Directors 2
F. Ownership and Encumbrances 2
II. DEFINITIONS ....................................................................................................................2
III. BOUNDARIES ...................................................................................................................4
IV. PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION....... 4
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES.......
4
A. 'Powers of the District and Service Plan.Amendment
4
1.
Operations and Maintenance Limitation
.4
2.
Use of Bond Proceeds and Other Revenues of the District Limitation......
5
3.
Recovery Agreement Limitation
4.
Construction Standards Limitation
5
5.
Privately Placed Debt Limitation
5
6.
Boundary Change Limitation
6
7.
Total Debt Issuance Limitation...,
6
8.
No Rates, Fees, Charges, Assessments or Exaction
6
9.
Monies from Other Governmental Sources
6
10.
Consolidation Limitation
6
11.
Bankruptcy Limitation
6
12..
Eminent Domain Powers Limitation
6
11
Notice of Meetings
6
14.
'Subdistricts; 63-20 Corporations
7
15.
Intergovernmental Agreement; Improvement Guaranty
7
16.
Ballot Issues
7
17.
Service Plan Amendment Requirement
7
B. Preliminary Engineering Survey
7
C. Compliance with Laws .
8
VI. FINANCIAL PLAN 8
A. General .............................................................:......................................................8
B. Maximum Voted Interest Rate and Maximum Underwriting Discount.................. 8
C. No-Default Provisions 9
D. Maximum Mill Levy 9
E. Maximum Mill Levy Imposition Term 9
F. Debt Repayment Sources 9
G. Security for Debt 9
H. Operating Mill Levy 10
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VII. ANNUAL REPORT 10
A. General ..................................................................................................................10
B. Reporting of Significant Events 10
VIII. REVIEW OF ANNUAL REPORT 11
IX. MATERIAL MODIFICATION 11
X. DETERMINATION OF APPLICABILITY 12
XI. AMENDMENT .................................................................................................................13
XII. EXEMPTION 14
XIII. DISSOLUTION 14
XIV. DISCLOSURE TO PURCHASERS 14
XV. COMPLIANCE WITH LAWS 14
XVI. SANCTIONS 15
XVII. CONCLUSION ..............................................................................................:.....:..:.......:.15
LIST OF EXHIBITS
EXHIBIT A
Legal Description
EXHIBIT B
Avon Vicinity Map
EXHIBIT C
Initial District Boundary Map
EXHIBITD
Description of Public Improvements, including the information required
by Section 32-17202(c) and (e).
EXHIBIT E
Matrix of Ownership and Maintenance
EXHIBIT F
Financing Plan, including sources and uses and bond solutions
EXHIBIT G
District Election Questions
EXHIBIT H
Underwriter Commitment Letter
EXHIBIT I
Form of Disclosure
EXHIBIT J
Proof of Ownership and Encumbrances
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SERVICE.PLAN
FOR
METROPOLITAN DISTRICT
1. INTRODUCTION
A. Purpose and Intent. The District is an independent unit of local government,
separate and distinct from the Town. It is intended that the District will provide a part or all of
the Public Improvements for the use and benefit of all anticipated constituents and taxpayers of
the District. The primary purpose of the District will be to finance the construction of these
Public Improvements. The, District is not being created to provide ongoing operations and
maintenance services other than as specifically set forth in Exhibit E to this Service Plan.
B. Need for the District. There are currently no other governmental entities,
including the Town, located in the immediate vicinity of the District 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 District is therefore necessary in order for the Public Improvements required for
the Project to be provided in the most economic manner possible.
C. Objective of the Town Regarding District Service Plans. The Town's objective
in approving the ' Service Plan for the District is to authorize the District to provide for the
planning, design, acquisition, construction, installation, and financing of the Public
Improvements from the proceeds of Debt to be issued by the District. All Debt is expected to be
repaid by taxes imposed and collected for no longer than the Maximum Mill Levy Imposition
Term. The District's mill levy shall be no higher thanthe Maximum Mill Levy.
This Service Plan is intended to, establish -a limited purpose for the District and
explicit financial constraints that are not to be violated under any circumstances. The primary
purpose is to provide for the Public Improvements associated with development and regional
needs. [Operational activities are allowed only to the extent specified in Exhibit E to this Service
Plan.]
[It is the intent of the District 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, or upon the occurrence of an event specified in Section 32-1-701(2) or (3)' of the
Special District Act]
The District shall be authorized to finance the Public Improvements that can be
funded from Debt to be repaid from tax revenues collected from a mill levy which shall not
exceed the Maximum Mill Levy and which shall not exceed the Maximum Mill Levy Imposition
Term. It is the intent of this Service Plan to assure to the extent possible that no property bear an
economic burden that is greater than that associated with the Maximum Mill Levy in amount and
that no property bear an economic burden that is greater than thai associated with the Maximum
Mill Levy Imposition Term. Generally, the cost of Public Improvements that cannot be funded.
within these parameters are not costs to be paid by the District.
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D. Organizers and Consultants. This Service. Plan has been prepared by the
following:
Organizers
Financial Advisor
Bond Counsel
District Counsel
En 'veers
E. Initial Board of Directors.
The first Board of Directors is proposed to include:
[Insert name, address and phone number]
F. Ownership and Encumbrances.
Attached hereto as Exhibit J is proof of current ownership of and encumbrances on
property in the District.
II. 'DEFINITIONS
In this Service Plan, the following terms shall have the meanings indicated below, unless
the context hereof clearly requires otherwise:
Board: means the board of directors of the District.
Bonds or Debt: means any bonds, notes, debentures; certificates, contracts, capital leases,.
or other multiple fiscal year financial obligations of the District.
District: means the Metropolitan District.
External Financial Advisor: means a consultant that: (1) advises 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
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Buyer's Municipal Market Place (also known as the Redbook); and (3) is not an officer of the
District.
Financial Plan: means the Financial Plan attached hereto as Exhibit F and described in
Section VI which describes (a) how the Public Improvements are to be financed; (b) how the
Debt is expected to be incurred; and (c) the estimated revenue and expenses.
Initial District Boundaries: means the boundaries of the area described in the Initial
District Boundary Map.
Initial District Boundary Map: means the map attached hereto as Exhibit C, describing
the.Initial District's Boundaries.
Market Issued Debt: means Debt which is underwritten by an underwriter or investment
banker listed in the Bond Buyer's Municipal Market Place (also known as the Redbook).
Material Modification: means a modification to this Service-Plan as described in- C.R.S.
§ 32-1-207(2) or Section IX of this Service Plan.
Maximum Mill Lew: means the maximum mill levy the District is permitted to impose
for payment of Debt as set forth in Section VLE below. .
Maximum Mill Levy Imposition Term: means the maximum term for imposition of a
mill levy as set forth in Section VLF below.
. Official Development Plan: means an Official Development Plan as approved by the
Town pursuant to the Town Code.
Privately Placed Debt: means Debt which is sold or placed directly with an investor,
without being underwritten by an underwriter or investment banker.
Project: means the development or property commonly referred to as
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, and financed as generally described in Exhibit D,
except as specifically limited in Section V below, to serve the future taxpayers and inhabitants of
the Initial District Boundaries as determined by the Board of Directors.
Service Plan: means this service plan for the District approved by the Town Council.
Service PlanAmendment: means an amendment to the Service Plan approved by Town
Council in accordance with the Town's ordinance and the applicable state law.
Special District Act: means Section 32-1-101, et sue., of the Colorado Revised Statutes,
as amended from time to time.
State: means the State of Colorado:
Town: means the Town of Avon, Colorado.
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Town Attorney: means the Town Attorney of the Town of Avon, Colorado.
Town Code: means the Municipal Code of the Town of Avon, Colorado.
Town Council: means the Town Council of the Town of Avon, Colorado.
Town Manager: means the Town Manager of the Town of Avon, Colorado.
III. BOUNDARIES
The area of the Initial District Boundaries includes approximately acres. A
legal description of the Initial District Boundaries is attached hereto as Exhibit A. A map of the
Initial District Boundaries is attached hereto as Exhibit C. A vicinity map is attached hereto as
Exhibit B. Property upon which residential units are built or will be built to qualify under an
affordable housing program are excluded from the Initial District Boundaries. Furthermore,
pursuant to Section 32-1-1001(1)0)(II) of the Special District Act, the District shall not impose a
tap fee or connection fee for any property owned or used for affordable housing.
IV. PROPOSED LAND USE/POPULATION PROJECTIONRASSESSED VALUATION
The Initial District Boundaries consists of approximately _ acres of
land:., The current assessed valuation of the Initial District Boundaries is $ and, at
build out., is expected to be sufficient to reasonably discharge the Debt under the Financial Plan.
The population of the District at build-out is estimated to be approximately people.
The Official Development Plan for the property in the Initial District Boundaries was
approved by the Town on
V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES
A. Powers of the District and Service Plan Amendment.
The District shall have the power and authority to provide the Public
Improvements and, if provided herein, related operation and maintenance services, within and
without the boundaries of the District as such power and authority is described in the Special
District Act, other applicable statutes, and constitutional and common law, subject to the
limitations set forth herein.
1. Operations and Maintenance Limitation. The purpose of the District is.to
plan for, design; acquire, construct, install, and finance the Public Improvements. The District
shall dedicate the Public Improvements to the Town or other appropriate jurisdiction or owners
association in a manner consistent with the Official Development Plan and other rules and
regulations of the Town and applicable provisions of the Town Code. The District shall not be
authorized to operate and maintain any part or all of the Public Improvements unless the
provision of such operation and maintenance is pursuant. to Exhibit E in the approved Service
Plan. ' [Pursuant to Section XIII, upon payment of all authorized Debt used to construct the
Public Improvements; the Board of Directors of the District will take all necessary action to
promptly dissolve the District.]
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2. Use of Bond Proceeds. and Other Revenues' of. the District Limitation.
Proceeds from the sale of Debt instruments and other revenues of the District may be used only
for those public purposes .permitted by the Special District Act and this Service Plan. If the
landowner/developer constructs Public Improvements and conveys them to the District
contingent upon a pledge from the. District that it . will issue bonds to pay the
landowner/developer, prior to reimbursing the landowner/developer, for such amounts, the
District must receive the report of an independent engineer or accountant confirming that the
amount of the reimbursement is reasonable. All property acquired . and Public Improvements
installed shall ' be done in compliance with the Special District Act and applicable bidding
requirements.
3. Recovery Agreement Limitation. Should the District construct
infrastructure subject to a recovery agreement with the Town or other entity, the District shall
retain all benefits under the recovery agreement. Any subsequent reimbursement to the District
for public improvements installed or financed by the District will remain the property of the
District and be applied toward repayment of its Debt, if any. Any reimbursement revenue not
necessary to repay District Debt may be utilized to construct additional Public Improvements
permitted under this Service Plan.
4. Construction Standards Limitation. The District will ensure that the
Public Improvements are designed and constructed in accordance with -the standards and
specifications of the Town and of other governmental entities having proper jurisdiction. In all
instances, the District will comply with applicable Town ordinances, regulations and standards,
including, without limitation, and to the extent necessary, execution of public improvement
agreements and provision of improvements and dedication of any of the public improvements to
the Town. The District will obtain the Town's approval of civil engineering plans and will
obtain applicable permits for construction and installation of Public Improvements prior to
performing such work. Nothing herein requires the Town to accept the transfer of any public
Improvement.
5. Privately Placed Debt Limitation. Prior to the issuance of any Privately
Placed Debt, the 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 [1] certify. that (1) the net effective interest rate (calculated as
defined in Section 32-1-103(12), C.R.S.) 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 J my] analysis of comparable
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.
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6. Boundary Change Limitation. The District shall not include within or
exclude from its boundaries any property without the prior written consent of the Town.
7. Total Debt Issuance Limitation. The District shall not issue Debt in an
aggregate principal amount in excess of $ , provided that the foregoing shall not
include the principal amount of Debt which has been refunded by the issuance of refunding Debt.
8. No Rates, Fees. Charges, Assessments or Exaction. The District shall not
impose any tax, rate, fee, charge, assessment or exaction and shall not utilize any tax, rate, fee,
charge, assessment or exaction imposed by any public or private entity without written consent
of the Town.
9. Monies from Other Governmental Sources. The District shall not apply
for or accept Conservation Trust Funds,. Great Outdoors Colorado Funds, or other funds
available from or through governmental or non-profit entities that the Town is eligible to apply
for, except pursuant to an intergovernmental agreement with the Town. This Section shall not
apply to specific ownership taxes which shall be distributed to and a revenue source for the
District without any limitation.
10. Consolidation Limitation. The District shall, not file a request. with any
Court to consolidate with another Title 32 district without the prior written consent of the Town.
11. Bankruptcy Limitation. All of the limitations contained in this Service
Plan, including, but' not limited to, those pertaining to the Maximum Mill Levy and the
Maximum Mill. Levy Imposition Teri have been established under the authority of the Town to
approve a Service Plan with conditions pursuant to Section 32-1-204.5 of the Special District.
Act. It is expressly intended that such limitations:
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and.,
(b) Are, together with all other requirements of Colorado . 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 "regulatoryor electoral
approval necessary under applicable nonbankruptcy law" as required for confirmation of a
Chapter 9 Bankruptcy. Plan under Bankruptcy Code Section 943(b)(6).
Any Debt issued with a pledge or which results in a pledge that exceeds the Maximum Mill Levy
or the Maximum Mill Levy Imposition Term, shall be deemed a material departure from this
Service Plan pursuant to Section 32-1-207 of the Special District Act, and the Town shall be
entitled to all remedies available under State and local law to enjoin, such actions of the District.
12. Eminent Domain Powers Limitation. The District shall not exercise the
power of eminent domain except upon the prior written consent of the Town.
13. Notice of Meetings. The District shall deliver to the Town Clerk a copy of
written notice of every regular or special meeting of the District at least three (3) business days
prior to such meeting. The District shall post a copy of.such notice at Town Hall. From the time
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that 50% of the structures to be built in the District have been sold to purchasers, all meetings of
the Board of Directors shall be held within Town limits.
14. Subdistricts; 63-20 Corporations. No subdistricts shall be created' by the
District pursuant to Section 32-1-1101(1.5) of the Special District Act. The District -shall not
create any corporation to issue Bonds on the District's behalf.
15. Intergovernmental Agreement; Improvement Guaranty. The District shall
not levy any taxes or issue any debt until it enters into an intergovernmental agreement with the
Town regarding the enforcement of this Ordinance and the provisions of the Model Service Plan.
The intergovernmental agreement shall be in form and substance satisfactory to the Town
Manager and Town Attorney. The creation of the District shall not alter the obligation of the
developer of property in the District to provide the Town with improvement guarantees pursuant
to
16. Ballot Issues. The District shall provide to the Town Clerk a copy of any
ballot issue, as defined in Article X, Section 20(2)(a) of the Colorado Constitution, no later than
fifty-five (55) days before the election on such ballot issue. The District shall cause a copy of
such ballot issue language to be posted at Town Hall. The District shall use reasonable efforts to
obtain two summaries as described in Article X, Section 20(3)(b)(v) of the Colorado
Const itution, one for and one against the ballot issue, to be included in the required.notice of
election.
17. Service Plan Amendment Requirement. This Service Plan has been
designed with sufficient flexibility to enable the District to provide required services and
facilities under evolving circumstances without the need for numerous amendments. While the
assumptions upon which this Service Plan are generally based are reflective of [an Official
Development Plan] for the property within the District, the cost estimates and Financing Plan are
sufficiently flexible to enable the District to provide necessary services and facilities without the
need to amend this Service Plan as development plans change. Modification of the general types
of services and facilities, and changes in proposed configurations, locations, or dimensions of
various facilities and improvements shall be permitted to accommodate development needs
consistent with then-current Official Development Plans for the property. Actions of the District
which violate the limitations set forth in Sections A.1-16 above or in Section VI shall be deemed
to be material departures from this Service Plan and the Town shall be entitled to all remedies
available under State and local law to enjoin such actions of the District.
B. Preliminary Engineering Survey.
The District shall have authority to provide for the planning, design, acquisition,.
construction, installation, relocation, redevelopment, maintenance, and financing of the Public
Improvements within and without the boundaries of the District, as more specifically described
in Exhibit D. An estimate of the costs of the Public Improvements which may be planned for,
designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed was
prepared based upon a preliminary engineering survey and estimates derived from the Official
Development Plan on the property in' the Initial District Boundaries and is approximately
$ and as more specifically detailed in Exhibit D.
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All of the Public Improvements described herein will be designed in such a way
as to assure that the Public Improvements standards will. be compatible with those of the Town
and shall be in accordance with the requirements of the' Official Development Plan. All
descriptions of the Public Improvements to be constructed, and their related costs, are estimates
only and are subject to modification as engineering, development plans, economics, the Town's
requirements, and construction scheduling may require. Upon approval of this Service Plan, the
District will continue to develop and refine cost estimates contained herein and prepare for
issuance of Debt. All cost estimates will be inflated to then-current dollars at the time of the
issuance of Debt and construction. All construction cost estimates assume construction to
applicable local, State or Federal requirements.
C. Compliance with Laws.
All activities of the District shall be subject to the Town's zoning, subdivision,
building code, land use and other requirements of the Town Code.
The Town shall not be limited in implementing Town Council or voter approved
growth limitations, . even though such actions may reduce or delay development within the
District and the realization of District revenue.
VI. FINANCIAL PLAN
A. General.
The District shall be authorized to provide for the planning, design, acquisition,
construction, installation, relocation, and financing of the Public Improvements from its revenues
and by and through the proceeds of Debt to be issued by the District. The Financial Plan for the
District shall be to issue such Debt as the District can reasonably pay within the Maximum Mill
Levy Imposition Term from revenues derived from the Maximum Mill Levy and other legally-
available revenues (subject to Section V.A.8 hereof). The total. Debt` that the District shall be
permitted to issue shall not exceed the total Debt issuance limitation set forth in Section V.A.7
hereof, and shall be permitted to be issued on a schedule and in such year or years as the District
determine shall meet. the needs of the Financial Plan referenced above and phased to serve
development as it occurs. All Debt issued by the District may be payable from any and all
legally available revenues of the District, including general ad valorem taxes to be imposed upon
all taxable property of the District. Prior to issuing any Debt, the District shall deliver to the
Town an opinion of nationally recognized bond counsel (acceptable to the Town Attorney)
stating that the Debt satisfies the requirements of the Service Plan.
B. Maximum Voted Interest Rate and Maximum Underwriting Discount.
The interest rate on any Debt is expected to be the market rate at the time the Debt
is issued. The proposed' maximum interest rate on any Debt shall not exceed The
maximum underwriting discount shall not, exceed Debt, when issued, will comply with all
relevant requirements of, this Service Plan, State law and Federal law as then applicable to the
issuance of public securities. The forms of the ballot questions which the District will submit to
its electors at the.organizational election are attached hereto as Exhibit G.
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C. No-Default Provisions.
Debt issued by a District shall be structured so that failure to pay debt service
when due shall not of itself constitute an event of default or result in the exercise of remedies.
The foregoing shall not be construed to prohibit events of default and remedies for other
occurrences including, without limitation, (1) failure to impose or collect the Maximum Mill
Levy or such portion thereof as may be pledged thereto, or to apply the same in accordance with
the terms of the Debt, (2) failure to abide by other covenants made in connection with such Debt,
or (3) filing by a District as a debtor under any bankruptcy or other applicable insolvency laws.
Notwithstanding. the foregoing, Debt will not be structured with a remedy which, requires the
District to increase the Maximum Mill Levy or the Maximum Mill Levy Imposition Term.
D. Maximum Mill Lew.
The "Maximum Mill. Levy" shall be, the maximum mill levy the District is
permitted to impose upon the taxable property of the District and shall be determined as follows:
1. The Maximum Mill Levy shall be fifty (50) mills for both debt service and
operating purposes; provided, however, that such mill levy be adjusted by the District to take
into account legislative or. constitutionally imposed adjustments in assessed values or the method
of their calculation occurring after January 1, 20so that to the' extent possible, the actual
revenues generated by the maximum mill levy are neither diminished nor enhanced as a result of
such changes. Among other adjustments, a change in the ratio of actual valuation of assessable
property shall be deemed a change in the method of calculating assessed valuation.
E. Maximum Mill Levy Imposition Term.
The District shall not impose a Debt service mill levy for more than forty (40)
years after the year of the initial imposition of such Debt service mill levy unless: (1) a majority
of the Board of Directors of the District imposing the, mill levy are residents of such District, and
(2) such Board has voted in favor of issuing Debt with a term which requires or contemplates the
imposition of a Debt service mill levy for a longer period of time than the limitation contained
herein.
F. Debt Repayment Sources.
The District may impose a mill levy on taxable property within its boundaries as a
primary source of revenue for repayment of Debt service and for operations and maintenance.
The Debt mill levy shall only be used for Debt service on Market Issued Debt or for Privately
Placed Debt. It shall never be used to pay debt service on any, other obligation. The District may
also use various other revenue sources authorized by law and this Service Plan to pay Debt service.
In no event shall the Debt service mill levy in any District exceed the Maximum Mill Levy or the
Maximum Mill Levy Imposition Term.
G. Security for Debt.
No Debt or other financial obligation of any District will constitute a debt or
obligation of the Town in any manner. The faith and credit of the Town will not be pledged for
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the repayment of any Debt or other financial obligation of any District. This will be clearly
stated on all offering circulars, ' prospectuses, or disclosure statements associated with an
y
securities issued by any District. A District shall not utilize the Town of Avon' name in the
name of the District.
H. Onerating'Mill Levy
In addition to the capital costs of the Public. Improvements, the District will
require operating funds for administration and to plan and cause the Public, Improvements to be
constructed and maintained. The first year's operating budget is estimated to be $
which is anticipated to be derived from property taxes and other revenues as described in
Exhibit F.
VII. ' ANNUAL REPORT
A. General.
The, District shall be responsible for submitting an . annual report to the Town no
later than August, l of each year following the year in which the Order and Decree creating the
District has been issued.
B. Reporting of Significant Events.
The annual report shall include the following information:
(a) A narrative summary of the progress of the District in
implementing its Service Plan;
(b) Except when an exemption from audit has been granted for the
fiscal year under the Local Government Audit Law, the audited financial statements of the
District for the fiscal year including a statement of financial condition (i.e. balance sheet) as of
December 31 of the fiscal year and the statement of operations (i.e. revenues and expenditures)
for the fiscal year,
(c) Unless disclosed within a separate schedule to the financial
statements, a summary of the capital' expenditures incurred by the District in development of
public facilities in the.fiscal year, as well as any capital improvements or projects proposed to be
undertaken in the five (5) years following the fiscal year;
(d), Unless disclosed within a separate schedule to the financial
statements, a summary of the financial- obligations of the District at the end of the fiscal year,
including the amount 'of outstanding indebtedness, the amount and terms of any new District
indebtedness or long-term obligations issued 'in the fiscal, year;. the amount of payment or
retirement of existing indebtedness of the District in the fiscal year,, the total assessed valuation
of all taxable properties within the District as of January 1 of the fiscal year, and the current mill
levy of the District pledged to debt retirement in the fiscal year;
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(e) The District's budget for the calendar year in which the annual
report is submitted;
(f) A summary of residential and commercial development which has
occurred within the District for the fiscal year;
(g) A summary of all taxes, fees, charges and assessments imposed by
the District as of January 1 of the fiscal year,
(h). The name, business address and telephone number of each member
of the Board of Directors. and its chief administrative officer and general counsel, together with
the date, place and time of the regular meetings of the Board of Directors; and
(i) A summary of any regular or special election held during the fiscal
year, together with a copy of the ballot, public records relating to voter information, an d other
.election materials, and a certification that such elections were held in conformance with all
applicable laws.
VIII. REVIEW OF ANNUAL REPORT
The Town Council, at 'a regular or special public meeting, may review the annual report
from the District. The failure of the District to file the annual report within thirty (30) days of
the mailing of a default notice by the Town Clerk shall empower the Town Council to impose
the sanctions authorized in Section XVI. The remedies provided for non-compliance with the
filing of the annual report are supplementary to the remedy- authorized under Section 32-1-209 of
the Special District Act.
IX. MATERIAL MODIFICATION
The occurrence of any of the following actions, events or conditions ("Events") after
(I) approval of an Approved Service Plan, (II) written notice from the Town of such Event is
provided to the District and (III) the District fails to correct or cure such Event within ninety (90)
days from receipt of such notice or fails to request a hearing under Section 18.01.14. of the Avon
Municipal Code (provided, however, if the District cannot reasonably correct or cure such Event
within such ninety (90) day period but can reasonably correct or cure such Event within, one
hundred eighty (180) days after receipt of the notice, the District commences its correction or
cure within such ninety (90) day period and diligently pursues the same to completion within the
one hundred eighty (180) day period), are deemed changes of a basic or essential nature which
constitute a Material Modification which shall require a service plan amendment. .
A. Any issuance of Debt or proposed issuance of Debt with a pledge or that would
result in a pledge that exceeds the Maximum Mill Levy or the Maximum Mill Levy Imposition
Term.
B. Default in the payment of principal or interest of any District bonds, notes,
certificates; debentures, contracts or other evidences of indebtedness or borrowing issued or
incurred by the District which:
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1. Persists for a period of one hundred twenty (120) days or more;
2. The defaulted payment(s) aggregates either Fifty Thousand Dollars
($50,000.00) or ten percent (10%) of the outstanding principal balance of the indebtedness; and
3. The creditors have not agreed in writing with the District to forbear from
pursuit of legal remedies.
C. The institution of a proceeding for debt adjustment or the confirmation of a plan
for adjustment of debt under Chapter 9 of the Bankruptcy Code;
D. The failure of the District to develop any, capital facility proposed in this-Service
Plan when necessary to service approved development within the District;
E. Failure of the District to realize at least seventy-five percent (75%) of the.
development revenues (including developer contributions, loans or advances) projected in .this
Service Plan during the three=year period ending with the report year, where development
revenue is defined as fees, exactions and charges imposed by the District on residential and
commercial development, excluding taxes, provided that the disparity between projected and
realized revenue exceeds Fifty Thousand Dollars ($50,000.00);
F. The development of any capital facility in excess of Ten Thousand Dollars
($10,000.00) in cost, which is not either identified in this Service Plan or authorized by the Town
in a separate development approval;
G. The occurrence of any event or condition which is defined under this Service Plan
or an intergovernmental agreement as constituting a material modification or necessitating an
amendment;
H. The default by the District under any intergovernmental agreement with the
Town;
. I. The inclusion or exclusion of property into or from the District's boundaries
without first obtaining the consent of the Town; or
Any of the events or conditions enumerated in Section 32-1-207(2) of the Special_
District Act.
K. The. imposition of any tax, rate, fee, charge, assessment or exaction without the
written consent of the Town or the issuance of any Debt not authorized by this Service Plan.
X. DETERMINATION OF APPLICABILITY.
Should the District dispute that one (1) or more, of the Events enumerated in Section IX
has occurred,, it may request a hearing before the Town Council within ninety (90) days after
written notice from the Town of such occurrence. After hearing and receipt of any relevant
information presented by the District and the recommendation of the Town Manager, the -Town
Council shall make a finding as to whether such occurrence constitutes a Material Modification.
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If the Town Council concludes a Material Modification has occurred, the District shall comply
with Section XI. The- Town Council shall retain the prerogative to require an, amendment
thereafter if the change or deviation, on a cumulative basis, subsequently becomes material. In
making its determination, the Town Council may consider, among other relevant information,
whether the modification will have an adverse financial impact on the Town.
Xl. AMENDMENT.
If a Material Modification is found to have occurred under Section IX or X, within ninety
(90) days of such finding, the. Board shall forward a petition to the Town Council requesting a
service plan amendment. The petition for amendment shall include, among other' relevant
information:
A. Any information or documentation required'under the applicable provisions of the
Special District Act;.
B. An update to any of the information, assumptions or projects famished in
conjunction with the petition for "approval of organization of a District or contained in this
Service Plan, with all changes highlighted and enumerated;
C. A detailed explanation of the activity, events or conditions resulting in the
Material, Modification to this Service Plan, including what action was taken or alternatives
considered, if any, by the District to avoid the action, event or condition;
D. The projected or resulting impact of the Material. Modification on the District's
ability to develop the capital facilities and infrastructure necessary to meet its original capital
development plan;
E. The effect of the Material Modification on the District's ability to retire as
scheduled its outstanding financial obligations "and its ability to issue and market' additional
indebtedness to finance additional capital expenditures;
F. An updated financial plan for the District reflecting development absorption rates
anticipated within the District's service area, projected annual revenues and expenditures based
upon such projected "absorption rates, debt issuance and amortization schedules, and a projection
of, anticipated capital outlays;
G. The financial impact of the Material Modification on existing residents of the
District
H. An updated five-year capital improvements plan; and
I. " What alternatives or options are available to the District if the requested
amendment is.not approved.
The amendment shall be processed and reviewed in the same manner as prescribed for an
initial service" plan, except that the -submittal requirements of this Section shall apply. The
District shall pay to the Town the fee required by Section 1&01.04 of the Avon Municipal' Code.
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If the District applies for an amendment under this Section, the Town shall not bring an action
pursuant to Section 324-207(3)(b) of the Special District Act.during the processing by the Town
of such request for an amendment unless necessary to protect the interests of the Town.
XII. EXEMPTION
If the District has not undertaken development of capital facilities or. issued any
indebtedness, it may apply to the Town Council for an exemption from compliance with certain
portions of this Service Plan or Chapter 18.01 of the Avon Municipal Code. The Town Council
shall consider issuing an exemption if the District's authorization under the Service Plan and the
intergovernmental agreement with the Town to undertake development of capital facilities or
issue any indebtedness is suspended by resolution of the Board of Directors. With issuance of
the exemption, the District shall be excluded from compliance with such exempted requirement,
except that the District annually, not later than September 1 shall submit financial statements
from the,previous year and the budget for the current year. If the District. is granted an exempt
status, prior to undertaking capital development or issuing any indebtedness authorized under
this Service Plan or the Special District Act, the District shall fully comply with the provisions of
this Service Plan and Chapter 18.01 of the Avon Municipal Code.
XHL DISSOLUTION
The District agrees . to file petitions in the appropriate District Court _for dissolution,
pursuant to the applicable State statutes upon the occurrence of one of the following: (1) if the
District has not issued any Debt within five (5) years from the approval of this Service Plan, (2)
upon an independent determination of the Board of Trustees that the purposes for which the
District were created have been accomplished, or (3)when no Debt is then outstanding. In no
event shall a dissolution occur until the District has provided for the payment or discharge of all
of its outstanding Debt as required pursuant to State statutes.
XIV. DISCLOSURE TO PURCHASERS
The District will use reasonable efforts to assure that all developers of or .builders on the
property located within such District provide written notice to all persons who purchase or lease
property in the'District from the developer or the builder regarding the Maximum Mill Levy as
well as a description of the District's authority to impose and collect rates, fees, charges or
exactions. The form of notice shall be substantially in the form of Exhibit I hereto; provided that
such form may be modified by the District so long as a new form is submitted to the Town prior
to.implementation. The District will use reasonable efforts to assure all promotional, marketing,
and sales information shall display notice, at least equal in size and font to all other pertinent
information, as to the debt, taxes, rates, fees and exactions of the District.
XV. COMPLIANCE WITH-LAWS
The approval of the Service Plan shall not limit the Town in implementing any growth
limitations imposed by the Board of Trustees or the voters. The District shall be subject to all of
the Town's zoning, subdivision, building code or land use requirements.
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XVI. SANCTIONS
Should the District fail to request and obtain an amendment when required under this
Service Plan or otherwise fail to fully and completely comply with this Service Plan, the Town
Council by resolution may impose one (1) or more of the following sanctions, as it deems
appropriate:
A. Exercise any applicable remedy under the Special District Act;
B. Withhold the issuance of' any permit, authorization; acceptance, or other
administrative approval necessary for the, District's development of public facilities or
construction;
C. Exercise any legal remedy under the terms of any, iintergovernmental agreement
under which the District is. in default; or
D. Exercise any other legal remedy, including seeking injunctive relief against the
District, to force compliance with the provisions of this Service-Plan.
XVII. CONCLUSION
It is submitted that this Service Plan for the District is in compliance with Chapter 18.01
of the Avon Municipal Code and, as required by Section 32-1-203(2) of the Special District Act
establishes that:
1. There is sufficient existing and projected need for organized service in the
area to be serviced by the District;
2.- The. existing service in the area to be served by the District is inadequate
for present and projected needs;
3. The District is capable of providing economical and sufficient service to
the area within its proposed boundaries; and
4. 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.
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EXHIBIT A
Legal Description
A-1.
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EXHIBIT B
Avon Vicinity Map
EXHIBIT C
Initial District Boundary Map
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C-1
EXHIBIT D
Description of Public Improvements
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EXHIBIT E .
Matrix of Ownership and Maintenance
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E-1
EXHIBIT F
Financing Plan, including. sources and uses
and bond solutions
EXHIBIT G
District Election Questions
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EXHIBIT H
.:.Underwriter Commitment Letter
EXHIBIT I
Form of Disclosure
Special Taxing District. The property is located within the boundaries of
Metropolitan District, a special taxing district (the "District"). The District has issued or expects
to issue bonds that are paid by revenues produced from annual tax levies on the taxable property
within the District. The buyer should investigate the financing plans of the District, proposed or
existing mill levies of the District :servicing such indebtedness, and the,potential for an increase
in such mill levies.
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EXHIBIT J
Proof of Ownership and Encumbrances