Sec. 122-30. Model service plan.
(a) On file. The model service plan is on file with the department. The model service plan may be amended, from time to time, by the city manager pursuant to the authority contained in section 7-4(m) of the Charter.
(b) Proposed service plan to comply. Any proposed service plan shall substantially comply with the model service plan.
(c) Contents of proposed service plan. In addition to the requirements of C.R.S. § 32-1-202 (2), as the same may, from time to time, be amended, the proposed service plan shall provide as follows:
(1) The maximum mill levy that the title 32 district shall be permitted to impose upon the taxable property within such district for the payment of debt shall be determined as follows:
a. For that portion of any aggregate title 32 district's debt which exceeds 50 percent of such district's assessed valuation, the maximum debt mill levy for such portion of debt shall be 50 mills less the number of mills necessary to pay unlimited mill levy debt described in subparagraph (b) of this subsection; provided that if, on or after January 1, 2004, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement; 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 title 32 district's board of directors in good faith (such determination to be binding and final) so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2004, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed valuation.
b. The portion of any aggregate title 32 district's debt which is equal to or less than 50 percent of such district's assessed valuation, either on the date of issuance or at any time thereafter, shall not be subject to the maximum debt mill levy and, as a result, may be such amount as is necessary to pay the debt service on such debt, without limitation of rate.
c. For purposes of the foregoing, once debt has been determined to be within subparagraph (b) of this subsection, so that the title 32 district is entitled to pledge to its payment an unlimited ad valorem mill levy, such district may provide that such debt shall remain secured by such unlimited mill levy, notwithstanding any subsequent change in such district's debt to assessed ratio. All debt issued by the title 32 district must be issued in compliance with the requirements of C.R.S. § 32-1-1101 and all other requirements of state law.
d. The maximum debt mill levy shall not apply to the district's operations and maintenance mill levy for the provision of operation and maintenance services to the district's taxpayers and service users as set forth in the approved service plan.
(2) The title 32 district shall have the authority to impose the ARI mill levy for the terms as set forth in subsection (c)(20) of this section. Other than the ARI mill levy, the title 32 district shall not impose a levy for repayment of any and all debt, or use the proceeds of any mill levy for repayment of debt, on any single property developed for residential uses that exceeds 40 years after the year of the initial imposition of such mill levy unless a majority of the board of directors of the title 32 district are residents of such district and have voted in favor of a refunding of a part or all of the debt and such refunding will result in a net present value savings as set forth in C.R.S § 11-56-101 et seq..
(3) The title 32 district shall dedicate all public improvements planned for, designed, acquired, constructed, installed, relocated, redeveloped, and financed by such district to the City or other appropriate jurisdiction or owners association in a manner consistent with the approved development plan and other rules and regulations of the city and applicable provisions of the code. The title 32 district shall not be authorized to operate and maintain any part or all of such public improvements, other than park and recreation improvements, unless the provision of such operation and maintenance is pursuant to an intergovernmental agreement with the City.
(4) The title 32 district shall be authorized, but not obligated to, operate and maintain park and recreation improvements without an intergovernmental agreement with the City, provided that any fee imposed by such district for access to such park and recreation improvements shall not result in nondistrict city residents paying a user fee that is greater than, or otherwise disproportionate to, similar fees and taxes paid by residents of such district. The title 32 district shall be entitled to impose an administrative fee as necessary to cover additional expenses associated with nondistrict city residents to ensure that such costs are not the responsibility of such district's residents. All such fees shall be based upon the district's determination that such fees do not exceed reasonable annual market fees for users of such facilities. Notwithstanding the foregoing, all parks and trails shall be open to the general public and nondistrict city residents free of charge.
(5) The title 32 district shall not be authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain fire protection facilities or services, unless such facilities and services are provided pursuant to an intergovernmental agreement with the City; provided that the authority to plan for, design, acquire, construct, install, relocate, redevelop, or finance fire hydrants and related improvements installed as part of the water system shall not be limited by this subsection.
(6) The title 32 district shall not be authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain television relay and translation facilities and services, other than for the installation of conduit as a part of a street construction project, unless such facilities and services are provided pursuant to an intergovernmental agreement with the City.
(7) The title 32 district shall not be authorized to plan, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain a golf course unless such activity is pursuant to an intergovernmental agreement with the City.
(8) The title 32 district shall ensure that all public improvements are designed and constructed in accordance with the standards and specifications of the City, other governmental entities having proper jurisdiction, and those special districts that qualify as "interested parties" under C.R.S. § 32-1-204(1), as applicable. The title 32 district shall obtain the City's approval of civil engineering plans and applicable permits for construction and installation of such improvements prior to performing such work.
(9) Prior to the issuance of any privately placed debt, the title 32 district shall obtain the certification of an external financial advisor substantially as follows:
a. The net effective interest rate (calculated as defined in C.R.S. § 32-1-103(12)) to be borne by the debt does not exceed a reasonable current tax-exempt or taxable interest rate, as appropriate, using criteria deemed appropriate by such advisor and based upon such advisor's analysis of comparable high yield securities; and
b. The structure of the debt, including maturities and early redemption provisions, is reasonable considering the financial circumstances of such district.
(10) The title 32 district shall not include within any of its boundaries any property outside such district's service area as defined by the approved service plan without the prior written consent of the City. The title 32 district shall not include within any of its boundaries any property inside such district's inclusion area boundaries as defined by the approved service plan without the prior written consent of the city except upon petition of the fee owner or owners of 100 percent of such property as provided in C.R.S. § 32-1-401(1)(a).
(10.5) The boundaries of the title 32 district shall not overlap with the boundaries of another title 32 district unless the aggregate mill levy for payment of debt of the overlapping districts will not at any time exceed the maximum debt mill levy of the title 32 district. Additionally, the title 32 district shall not consent to the organization of any other title 32 district within such district's service area that will overlap the boundaries of the title 32 district unless the aggregate mill levy for payment of debt of such proposed districts will not at any time exceed the maximum debt mill levy of the title 32 district.
(11) On or before the effective date of approval of an approved development plan, the title 32 district shall not:
a. Issue any debt;
b. Impose a mill levy for the payment of such debt by direct imposition or by transfer of funds from the district's operating fund to its debt service funds; or
c. Impose and collect any fees used for the purpose of repayment of such debt.
(12) The title 32 district shall not issue any debt in an amount that exceeds the amount authorized in its approved service plan in the aggregate; provided, however, that any debt issued by the district for regional improvements shall not be included within this limitation and shall be subject to the limitations set forth in the approved service plan.
(12.5) The title 32 district shall not impose upon or collect from taxable property owned or occupied by an end user any fee related to the funding of costs of a capital nature that has the effect, intentional or otherwise, of creating a capital cost payment obligation in any year on any taxable property owned or occupied by an end user. For purposes of this subsection, "end user" means any owner, or tenant of any owner, of any taxable improvement within the title 32 district who is intended to become burdened by the imposition of ad valorem property taxes subject to the maximum debt mill levy. By way of illustration, a resident homeowner, renter, commercial property owner, or commercial tenant is an end user. The business entity that constructs homes or commercial structures is not an end user. Notwithstanding any of the foregoing, the restrictions in this definition shall not apply to any fee imposed upon or collected from taxable property for the purpose of funding operation and maintenance costs of the title 32 district.
(13) The title 32 district shall not apply for or accept moneys from the state conservation trust fund, the Great Outdoors Colorado Fund, or any other fund available from or through governmental or nonprofit entities that the City is eligible to apply for, except pursuant to an intergovernmental agreement with the City. Notwithstanding the above, this prohibition shall not apply to specific ownership taxes, which taxes shall be distributed to and a revenue source for the title 32 district without any limitation.
(14) The title 32 district shall not file a request with any court to consolidate with any other title 32 district without the prior written consent of the City.
(15) All of the limitations contained in the approved service plan, including, but not limited to, those pertaining to the maximum debt mill levy and the maximum debt mill levy imposition term shall have been established under the authority of the City to approve a service plan with conditions pursuant to C.R.S. § 32-1-204.5. 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 an amendment to the approved service plan; and
b. Are, together with all other requirements of Colorado Law, included in the "Political or Governmental Powers" reserved to the state under the United States Bankruptcy Code, 11 U.S.C. section 903, and are also included in the "Regulatory or Electoral Approval Necessary Under Applicable Non-Bankruptcy Law" as required for confirmation of a chapter 9 bankruptcy plan under 11 U.S.C. section 943(B)(6).
(16) Any debt of the title 32 district, issued with a pledge or which results in a pledge, that exceeds the maximum debt mill levy and the maximum debt mill levy imposition term required by subsections (c)(1) and (2) of this section, shall be deemed a material modification of such district's approved service plan and shall not be an authorized issuance of debt unless and until such material modification has been approved by the City as part of an amendment to the approved service plan.
(17) Upon an independent determination of the city council that the purposes for which the title 32 district was created have been accomplished, the title 32 district will file a petition in the appropriate district court for dissolution, pursuant to the applicable provisions of state law. In no event shall a dissolution occur until such district has provided for the payment or discharge of all of its outstanding indebtedness and other financial obligations as required pursuant to state law.
(18) The title 32 district shall file an annual report with the city no later than August 1st of each year following the year in which the order and decree creating the district is issued. The annual report shall include all information required pursuant to the Special District Act.
(19) The title 32 district shall use reasonable efforts and due diligence to cause each developer and homebuilder to provide written notice of disclosure to all initial purchasers of property in the district that describes the general purpose of the district and financial impact on each residential property at the time of entering into the purchase contract. The form of notice shall be filed with the city prior to the initial issuance of the debt of the district imposing the mill levy that is the subject of the maximum debt mill levy.
(20) The title 32 district shall be authorized to provide for the planning, design, acquisition, construction, installation, relocation and/or redevelopment of regional improvements and fund the administration and overhead costs related to the provisions of regional improvements incurred as a result of participation in the alternatives set forth in subparagraphs a, b, or c of this subsection. The title 32 district shall impose the ARI mill levy and convey it as follows:
a. If the title 32 district has executed an ARI authority establishment agreement and the city has been offered the opportunity to execute an ARI authority establishment agreement, the terms of which provide for the City to appoint no less than 30 percent and no more than 49 percent of the members who will serve as the board of directors of the ARI authority to be established by such ARI authority establishment agreement, regardless as to whether the city approves the execution of such ARI authority establishment agreement, the revenue from the ARI mill levy shall be conveyed to the ARI authority for the planning, designing, constructing, installing, acquiring, relocating, redeveloping or financing of the regional improvements in the ARI master plan and for the operations of such ARI authority; or
b. If the city and the title 32 district have executed an intergovernmental agreement then the revenue from the ARI mill levy shall be conveyed to the city for use in planning, designing, constructing, installing, acquiring, relocating, redeveloping or financing of the regional improvements that benefit the service users and taxpayers of the title 32 district in accordance with such agreement; or
c. If neither subparagraph (a) nor (b) of this subsection is applicable then the revenue shall be conveyed to the city and:
i. The city shall place in a special account all revenues received from the ARI mill levy imposed in the title 32 district service area under this subsection and shall not expend such revenue until an intergovernmental agreement is executed between the title 32 district establishing the terms and conditions for the provision of the regional improvements; and
ii. If the intergovernmental agreement is not executed within two years from the date of the approval of the title 32 district service plan by the city and neither subparagraph (a) nor (b) of this subsection have occurred within two years from the date of the approval of the service plan by the City, then the revenue from the ARI mill levy shall be conveyed to the city for use by the City in the planning, designing, constructing, installing, acquiring, relocating, redeveloping or financing of the regional improvements that benefit the service users and taxpayers of the title 32 district as prioritized and determined by the City.
The regional improvements shall be limited to the provision of the planning, design, acquisition, construction, installation, relocation and/or redevelopment of street and transportation-related improvements as defined in the Colorado Special District Act and the administration and overhead costs incurred as a result of participation in the alternative set forth in subparagraphs a, b, or c of this section, unless the city has agreed otherwise in writing; provided, however, in no event shall the regional improvements include water or sanitary sewer improvements unless such improvements are necessary as a part of completing street and transportation-related improvements. The title 32 district shall cease to be obligated to impose, collect and convey to the appropriate entity, as described above, the revenue from the ARI mill levy described in this subsection at such time as the area within the title 32 district's boundaries is included within a different district organized under the Colorado Special District Act, or a general improvement district organized under C.R.S. § 31-25-601, et seq., or business improvement district organized under C.R.S. § 31-25-1201, et seq., which other district has been organized to fund a part or all of the regional improvements.
(21) The title 32 district shall enter into a written agreement with the city, to be executed after such district is formed, that the title 32 district will be bound by each of the terms and conditions set forth in its approved service plan
(22) Any action of the title 32 district that violates any of requirements of this subsection (c) shall be deemed to constitute a material modification to the approved service plan and the city shall be entitled to all remedies available under state and local law to enjoin such action of the district.
(d) The submission of a proposed service plan that conforms to the requirements of this section shall be deemed prima facie evidence that said plan satisfies the goals and objectives expressed in section 122-27 regarding the organization of title 32 districts in the city and the content requirements of C.R.S § 32-1-202(2)(a) through (h). (Code 1979, § 36.5-6; Ord. No. 2021-69, §§ 1 – 4, 1-10-2022; Ord. No. 2007-35, § 1, 6-4-2007; Ord. No. 2005-65, § 4, 9-12-2005; Ord. No. 2004-41, § 5, 7-12-2004; Ord. No. 2000-55, § 4, 6-26-2000)