(a)

Special districts ("Districts") organized under Title 32, Article 1 C.R.S. (the "Special District Act"), under appropriate circumstances, provide an economic alternative to the development of municipal infrastructure at the expense and risk of the Town. The Town has previously authorized Districts within its corporate limits for the sole purpose of development of infrastructure within their respective service areas. In the past, the Town has regulated the authority and autonomy of the Districts through its approving resolutions and intergovernmental agreements.

(b)

The intent of this Article is to impose conditions, restrictions, standards and requirements on the development of future new and presently existing Districts, and on approval of new service plans and amendments to existing service plans and interests in property (hereinafter included within the concept of service plan amendments) that relate to the development of additional capital infrastructure and the issuance of indebtedness, in order to preserve the financial integrity of the Town and the health, safety, prosperity, security and general welfare of all of the residents and citizens of the Town. The Special District Act and the existing intergovernmental agreements between the Town and the Districts in certain respects do not adequately address the local concerns and interests of the Town in regulating service plans and service plan amendments relating to development of capital facilities and incurrence of debt to finance such development, both of which ultimately have a direct financial consequence to the Town. It is necessary and advisable to specify the events and conditions which, under the Special District Act, may constitute material departures from an approved District service plan. The provisions of this Article are intended to provide procedures for the processing and review of proposals for approval of new service plans and for amendment of existing service plans, and to define the restrictions and limitations which may be imposed by the Town as a condition to the approval of such service plans and service plan amendments consistent with the policy and intent of this Article.

(c)

The adoption of this Article is necessary, requisite and proper for the government and administration of local and municipal matters under the Town's home rule powers granted by Article XX of the Colorado Constitution. The Town Council specifically finds that it has been granted the authority to approve, conditionally approve or disapprove any service plan from any Special District wholly or partially contained within the boundaries of the Town and that the exercise of such authority within its corporate limits is purely a matter of local concern. See Section 32-1-204.5, C.R.S.

(d)

The Town reserves all the powers and authority granted to municipalities by the Special District Act. The provisions of this Article shall be construed and applied to supplement the applicable provisions of the Special District Act and, to the extent provided herein, supercede the Special District Act pursuant to the home rule powers granted by Article XX of the Colorado Constitution.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

As used in this Article, the following terms, phrases and words shall have the following meanings:

Board means the Board of Directors of a District.

District means a special district organized under the Special District Act whose service plan is to be approved by the Town under applicable state law and any existing District that is located wholly within the corporate limits of the Town as of the effective date of this Article.

Petitioners means those persons proposing a service plan or an amendment to an approved service plan.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Not later than September 1 of each calendar year, each District shall file an annual report (the "annual report") with the Town Clerk, the requirements of which may be waived in whole or in part by the Town Council, if such reporting requirements place an undue hardship on such District. The annual report shall reflect activity and financial events of the District through the preceding December 31 (the "report year"). The annual report shall include the following:

(1)

A narrative summary of the progress of the District in implementing its service plan for the report year;

(2)

Except when exemption from audit has been granted for the report year under the Local Government Audit Law, the audited financial statements of the District for the report year, including a statement of financial condition (i.e., balance sheet) as of December 31 of the report year and the statement of operations (i.e., revenues and expenditures) for the report year;

(3)

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 report year, as well as any capital improvements or projects proposed to be undertaken in the five (5) years following the report year;

(4)

Unless disclosed within a separate schedule to the financial statements, a summary of the financial obligations of the District at the end of the report year, including the amount of outstanding indebtedness, the amount and terms of any new District indebtedness or long-term obligations issued in the report year, the amount of payment or retirement of existing indebtedness of the District in the report year, the total assessed valuation of all taxable properties within the District as of January 1 of the report year, and the current mill levy of the District pledged to debt retirement in the report year;

(5)

The District's budget for the calendar year in which the annual report is submitted;

(6)

A summary of residential and commercial development in the District for the report year;

(7)

A summary of all fees, charges and assessments imposed by the District as of January 1 of the report year;

(8)

Certification of the Board that no action, event or condition enumerated in Section 4-10-5 has occurred in the report year; and

(9)

The name, business address and telephone number of each member of the Board and its chief administrative officer and general counsel, together with the date, place and time of the regular meetings of the Board.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Annually, on a date established by resolution of the Town Council, the Town Council at a regular public meeting may review the annual reports received from each District. In the event the annual report is not timely received by the Town Clerk, notice thereof shall be given by certified mail by the Town Clerk to the Board of such District, at its last known address. The failure of the District to file the annual report within forty-five (45) days of the mailing of such notice by the Town Clerk shall empower the Town Council to impose the sanctions authorized in Section 4-10-21. The remedies provided for noncompliance with the filing of the annual report shall be supplementary to any remedy authorized by the Special District Act.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

The occurrence of any of the following actions, events or conditions, subsequent to the date of approval of the service plan or most recent amendment thereto, shall constitute a material departure requiring a service plan amendment:

(1)

The development of any capital facility in excess of one hundred thousand dollars ($100,000.00) in cost, which is not either identified in the service plan or authorized by the Town in the course of a separate development approval, excluding bona fide cost projection miscalculations; and state or federally mandated improvements, particularly water or sanitation facilities.

(2)

The failure of the District to develop, cause to be developed, or consent to the development by others of any capital facility proposed in its service plan when necessary to service approved development within the District that is actually occurring.

(3)

The occurrence of any event or condition which is defined under the service plan or intergovernmental agreement as necessitating a service plan amendment.

(4)

The material default by the District under any intergovernmental agreement with the Town.

(5)

Any of the events or conditions enumerated in Section 32-1-207(2), C.R.S., as amended.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Should the District dispute that one (1) or more of the occurrences or conditions asserted by this Town as a material departure is in fact a material departure, the District may request a hearing before the Town Council after consultation with Town staff. After hearing and receipt of any relevant information presented by the District and the recommendation of Town staff, the Town Council shall make a finding as to whether such occurrence constitutes a material departure. In the event it is found a material departure has taken place, the District shall submit its request for an amendment in accordance with this Article, unless waived by the Town Council. Upon a finding that no material departure has taken place, the District shall be relieved from obtaining an amendment. The Town Council may, however, require a later amendment if the change or deviation, on a cumulative basis, subsequently becomes material. In making its determination, the Town Council shall consider, among other relevant information, whether the departure will have a probable adverse financial impact on the Town.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

(a)

Except as otherwise provided in the approved service plan and except when the Town Council has determined that no material departure has occurred pursuant to Section 4-10-6, within ninety (90) days of the occurrence of an action, event or condition enumerated in Section 4-10-5, the Board shall forward an appropriate petition to the Town Council for approval requesting a service plan amendment. The petition for amendment shall include:

(1)

All information and documentation required under the applicable provisions of the Special District Act;

(2)

Any material changes since the service plan was last reviewed and approved by the Town Council to any of the information, assumptions or projections furnished in conjunction with the petition for approval of organization of a District or contained in the service plan;

(3)

A detailed explanation of the activity, events or conditions which resulted in the material departure, including what action was taken or alternatives considered, if any, by the District to avoid the action, event or condition;

(4)

The impact of the material departure on the District's ability to develop the capital facilities and infrastructure necessary to meet its capital development plan;

(5)

The effect of the material departure on the District's ability to retire as scheduled its outstanding financial obligations and its ability to issue and market additional indebtedness, if any;

(6)

A current 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;

(7)

The financial impact of the departure on existing residents of the District;

(8)

An updated five-year capital improvements plan; and

(9)

What alternatives or options are available to the District if the requested amendment is not approved.

(b)

All of the required information shall be supported by appropriate technical analysis, reports and supporting documents of qualified professionals and consultants. The amendment shall be processed and reviewed in the same manner as prescribed by this Article for an initial service plan, except that the submittal requirements of this Section shall be substituted for those of Section 4-10-14 and the application fee shall be two hundred fifty dollars ($250.00). This Section shall not impair the right of the Town to bring an action in the district court to enjoin the activities of the District pursuant to Section 32-1-207(3)(b), C.R.S., as amended.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

If any District has not undertaken development of capital facilities or issued any bonds, it may apply to the Town Council for a deferral from compliance with this Article for a period of time not to exceed two (2) years. The Town Council may grant a deferral if the Board submits a resolution to the Town Council stating that upon issuance of the exemption, 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 or other financial obligation is temporarily suspended. With issuance of the partial deferral, the District shall be excluded from compliance with this Article, 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 or file annual reports under Section 4-10-4.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

After the effective date of this Article, all service plan amendments and amendments to statement of purpose shall comply with this Article.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

A District shall not incur any financial obligations or issue bonded indebtedness that is not consistent with the service plan previously approved by the Town, without first submitting the proposed financing to the Town for review and comment. The submission shall include the dollar amount and nature of the obligation, the estimated interest rate and other financing costs, the type of revenues pledged to repayment, including amount of any mill levy pledged, and a description of the credit enhancements, if any, together with any preliminary official statement or other prospectus for the obligation.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Sections 4-10-12 through 4-10-19 shall govern the processing, review and consideration of service plans for new Districts, or service plan amendments for existing Districts.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Petitioners shall initiate a service plan proposal by meeting with a designated Town staff representative to discuss the procedures and requirements for a service plan. The Town representative shall explain the administrative process and provide information to assist petitioners in the orderly processing of the proposed service plan.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

(a)

Petitioners shall file a proposed service plan and fifteen (15) additional copies with the Town Clerk. The proposed service plan shall substantially comply with the format of any model service plan which is maintained on file with the Town Clerk.

(b)

The application and processing fee for a service plan shall be three thousand dollars ($3,000.00), provided that, if the Town Council determines that special review of the service plan or amendment is required, the Town Council may impose an additional fee to reimburse the Town for reasonable direct costs related to such special review. The Town Council may waive all or any portion of the application and processing fee for smaller Districts initiated by the Town's existing residents or businesses. The Town will reimburse any portion of the application and processing fee that is not expended by the Town.

(c)

A copy of the proposed petition to be filed with the district court must be included with the proposed service plan filed with the Town.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

The proposed service plan shall include the following:

(1)

The information required under Section 32-1-202(2), C.R.S.

(2)

A map of the proposed District boundaries with a legal description, or lot and block description.

(3)

An itemization of any costs which Petitioners expect to be assumed by the Town for the construction of public improvements.

(4)

Proof of ownership for all properties within the District.

(5)

A copy of any and all proposed, contractual and/or operations documents which would affect or be executed by the proposed District, including the form of any intergovernmental agreement between the District and the Town.

(6)

A capital plan including the following:

a.

A description of the type of capital facilities to be developed by the District;

b.

An estimate of the cost of the proposed facilities; and

c.

A pro forma capital expenditure plan correlating expenditures with development.

(7)

A financial plan including the following:

a.

The total amount of debt issuance planned for the five-year period commencing with the formation of the District;

b.

All proposed sources of revenue and projected District expenses, as well as the assumptions upon which they are based, for at least a ten-year period from the date of the District formation;

c.

The dollar amount of any anticipated financing, including capitalized interest, costs of issuance, estimated maximum rates and discounts, and any expenses related to the organization and initial operation of the District;

d.

A detailed repayment plan covering the life of any financing, including the frequency and amounts expected to be collected from all sources;

e.

The amount of any reserve fund and the expected level of annual debt service coverage which will be maintained for any financing;

f.

The total authorized debt for the District;

g.

The provisions regarding any credit enhancement, if any, for the proposed financing, including, but not limited to, letters of credit and insurance; and

h.

A list and written explanation of potential risks of the financing.

(8)

Such other information contained in the model service plan or as may reasonably be deemed necessary or appropriate by the Town.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Notwithstanding any provision of Section 32-1-202, C.R.S., to the contrary, the Town shall have ninety (90) days from the date the service plan is filed to complete its preliminary review. Once a review has been completed, a comprehensive analysis shall be made in written report form to the Town Council. The report shall evaluate the service plan and incorporate comments of the Town staff as well as any consultants. The report shall set forth the recommendations made in accordance with the review criteria contained in Section 4-10-17.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Upon completion of the administrative report, the Town shall schedule a public hearing at a regular Town Council meeting. Public notice shall be accomplished in accordance with the requirements of Section 32-1-204, C.R.S., as amended.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

(a)

The hearing held by the Town Council shall be open to the public. Any testimony or evidence which, in the discretion of the Town Council, is relevant to the organization of the District shall be considered.

(b)

After consideration of the service plan, reports and any evidence and testimony accepted or taken at the public hearing, the Town Council shall approve without condition, approve with condition or disapprove the proposed service plan or amendment, applying the following criteria:

(1)

Whether there is a sufficient existing and projected need for organized service in the area to be serviced by the proposed District;

(2)

Whether the existing service in the area to be served by the proposed District is inadequate for present and projected needs;

(3)

Whether the proposed District is capable of providing economical and sufficient service to the area within its proposed boundaries;

(4)

Whether the area to be included in the proposed District has or will have the financial ability to discharge the proposed indebtedness on a reasonable basis;

(5)

Whether adequate service is not or will not be available to the area through the Town or other existing quasi-municipal corporations, including existing Districts, within a reasonable time and on a comparable basis;

(6)

Whether the facility and service standards of the proposed District are compatible with the facility and service standards of the Town;

(7)

Whether the proposal is in substantial compliance with the Town's master plan;

(8)

Whether the proposal is in substantial compliance with the county, regional or state long-range water quality management plan for the area;

(9)

Whether the creation of the District will be in the best interests of the area proposed to be served;

(10)

Whether the creation of the District will be in the best interests of the residents or future residents of the area proposed to be served;

(11)

Whether the proposed service plan is in substantial compliance with this Article; and

(12)

Whether the creation of the District will foster urban development that is remote from or incapable of being integrated with existing urban areas, or place a burden on the Town or adjacent jurisdictions to provide urban services to residents of the proposed District.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Notwithstanding any provision of Section 32-1-202, C.R.S., to the contrary, within twenty (20) days after the public hearing, the Town Council shall adopt a resolution regarding the proposed service plan or amendment. If the service plan is approved, a resolution of approval shall be adopted. If the service plan is disapproved, a resolution for such disapproval shall be adopted, including the reasons for such disapproval. If the service plan is conditionally approved, the amendments to be made in, or additional information relating to, the service plan, together with the reasons for such amendments or additional information, shall be set forth in writing, and the hearing shall be continued until such amendments or additional information are incorporated in the service plan. Upon the incorporation of such amendments or additional information in the proposed service plan, the Town Council shall adopt a resolution of approval.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

The Town Council resolution shall document the Town Council's final determination for the purpose of any appeal to the district court.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Districts are prohibited from developing or constructing any capital facility unless such facility is authorized under the service plan and intergovernmental agreement, and any applicable Town ordinances.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

Should any District fail to comply with any applicable provision of a service plan or this article or an approved service plan amendment, the Town Council by resolution may impose one (1) or more of the following sanctions, as it deems appropriate:

(1)

Exercise any applicable remedy under the Special District Act;

(2)

Withhold the issuance of any permit, authorization, acceptance or other administrative approval necessary for the District's development of public facilities or construction;

(3)

Exercise any legal or equitable remedy under the terms of any intergovernmental agreement under which the District is in default; or

(4)

Exercise any other legal or equitable remedy, including seeking injunctive relief against the District, to ensure compliance with the provisions of this Article.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

This Article shall govern the processing, review and consideration of service plans for new Districts, or those existing Districts, required to submit service plans or service plan amendments which have not received approval prior to the effective date of this Article.

(Ord. 2001-2 §1; Ord. 2003-20 §3)

CHAPTER 4

Community Development