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HomeMy WebLinkAbout1.0 Metro District Service PlanSERVICE PLAN FOR ROSE RANCH METROPOLITAN DISTRICT March 20, 2000 TABLE OF CONTENTS Page PURPOSE 1 DESCRIPTION OF PROPOSED SERVICES 2 Parks 2 Street 2 Water 2 Sanitary 3 NEED FOR THE DISTRICT 3 PROPOSED DISTRICT BOUNDARIES/MAP 4 PROPOSED LAND USE/POPULATION PROJECTIONS 4 ASSESSED VALUATION 4 PRELIMINARY ENGINEERING ANALYSIS 4 Facilities to be Constructed and/or Acquired 4 Standards of Construction/Statement of Compatibility 5 Estimated Costs of Facilities 5 Operation and Maintenance/Estimated Costs 6 FINANCIAL PLAN 6 Financial Plan/Proposed Indebtedness 7 A. General Discussion 7 B. Mill Levy Cap 8 C. Cost Summary and Bond Development 8 D. Economic Viability. 11 PROPOSED INTERGOVERNMENTAL AGREEMENT 12 CONCLUSION 12 EXHIBITS EXHIBIT A Legal Description EXHIBIT B District Map EXHIBIT C-1 Parks and Recreation EXHIBIT C-2 Street and Safety Systems/Water System/ Sanitary Sewer and Drainage System EXHIBIT C-3 Parks and Recreation, Street and Safety Systems, Water System, Sanitary Sewer and Drainage Systems Cost Estimates EXHIBIT D Operations Cost Estimates EXHIBIT E Financial Plan ii SERVICE PLAN FOR THE PROPOSED ROSE RANCH METROPOLITAN DISTRICT PURPOSE Pursuant to the requirements of the Special District Control Act, Section 32-1-101, et seq., Colorado Revised Statutes, this Service Plan consists of a financial analysis and an engineering plan showing how the proposed facilities and services of the proposed District will be provided and financed. The following items are included in this Service Plan: 1. A description of the proposed services; 2. A financial plan showing how the proposed services are to be financed, including the proposed operating revenue derived from property taxes for the first budget year of the District and a schedule indicating the year or years during which proposed indebtedness is scheduled to be issued; 3. A preliminary engineering analysis showing how the proposed services are to be provided; 4. A map of the proposed special district boundaries and an estimate of the population and valuation for assessment of the proposed special district; 5. A general description of the facilities to be constructed and the standards of such construction, including a statement of how the facility and service standards of the proposed special district are compatible with facility and service standards of any county or municipality within which all or any portion of the proposed special district is to be located; and of municipalities and special districts which are interested parties pursuant to Section 32-1-204(1), C.R.S.; and 6. A general description of the estimated cost of acquiring land, engineering services, legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and initial operation of the District. 7. A description of any arrangement or proposed agreement with anv political subdivision for the performance of any services between the proposed district and such other political subdivision. 1 DESCRIPTION OF PROPOSED SERVICES Parks and Recreation Improvements Upon formation, the proposed District plans to provide for the acquisition, construction, completion, installation and/or operation and maintenance of parks and recreational facilities, including, but not limited to, parks, clubhouse, bike paths and pedestrian ways, open space, landscaping, cultural activities, community recreational facilities, and other active and passive recreational facilities and programs, and all necessary, incidental and appurtenant facilities, land and easements, together with extensions of and improvements to said facilities within and without the boundaries of the District. The parks and recreational facilities described in this Service Plan will be maintained by the proposed District. The golf course which is planned to be developed within the District will be developed and operated by a private party and it is not anticipated to be owned or maintained by the District. Street and Safety Protection Improvements The proposed District also intends to provide for the acquisition, construction, completion, installation and/or operation and maintenance of street improvements, both on-site and off-site, including curbs, gutters, culverts and other drainage facilities, sidewalks, bridges, overpasses, bike paths and pedestrian ways, landscaping, parking lots and structures, and a system of traffic and safety controls and devices on streets and highways, including signalization, together with all necessary, incidental, and appurtenant facilities, land and easements, together with extensions of and improvements to said facilities within and without the boundaries of the District. The street improvements described herein shall be maintained by the District. Water Improvements The proposed District also intends to provide for the acquisition, construction, completion, installation and/or operation and maintenance of a complete potable and non -potable local water supply, storage, transmission, and distribution system, which may include, but shall not be limited to, transmission lines, distribution mains and laterals, treatment facilities, storage facilities, land and easements, and all necessary, incidental, and appurtenant facilities, together with extensions of and improvements to said system within and without the boundaries of the District. The water improvements described herein shall be dedicated to and maintained by the District or the Roaring Fork Water and Sanitation District pursuant to an Intergovernmental Agreement. 2 Sanitary Sewer System Improvements The proposed District also intends to provide for the acquisition, construction, completion, installation and/or operation and maintenance of a complete local sanitary sewage collection and transmission system which may include, but shall not be limited to, collection mains and laterals, transmission.lines, treatment facilities, and/or storm sewer, flood and surface drainage facilities and systems, including detention/retention ponds and associated irrigation facilities, and all necessary, incidental, and appurtenant facilities, land and easements, together with extensions of and improvements to said system within and without the boundaries of the District. The sanitary sewer improvements described herein, except for storm and drainage facilities, shall be dedicated to and maintained by the Roaring Fork Water and Sanitation District as provided in this Service Plan. The storm sewer improvements described herein shall be dedicated to and maintained by the District. The proposed District shall have the authority to seek electorate authorization to effectuate all purposes set forth in this Service Plan in order to comply with all applicable constitutional and statutory requirements. NEED FOR THE DISTRICT The land in the proposed District (the "Subject Property") is entirely within the boundaries of the County of Garfield and the boundaries of the Roaring Fork Water and Sanitation District ("RFWSD"). The County of Garfield and RFWSD do not consider it feasible or practical to provide the Subject Property with the certain parks and recreation, water, sanitary sewer, street, safety and drainage services described in this Service Plan. Similarly, pursuant to Section 32-1-1006(1)(b)(I), C.R.S., as amended, the RFWSD does not consider it feasible, practical or desirable for the good of the entire RFWSD to fund the extension of the water or sewer lines or facilities to the area of the District or to provide the water and sanitation services described in this Service Plan. Therefore, it is necessary that the proposed District be organized to provide its inhabitants with those parks and recreation, water and sanitary sewer services, street, safety and drainage services which the County and RFWSD have determined they cannot feasibly or practically provide within the area of the District. The Subdivision Improvement Agreement which is part of the Rose Ranch PUD and the Rose Ranch Preliminary Plan will be amended to dedicate all facilities/improvements not dedicated to RFWSD to the proposed District e Carbondale Rural Fire Protection District will provide fire protection services to District residents. p 4 / rAr7640 74 {.0 The owner of the Subject Property, Roaring Fork Investments, LLC will not submit the proposed Order and Decree creating the District to the District Court for Garfield County, Colorado until the Final Plat and accompanying documents, including but not limited to the Roaring 3 Fork Water and Sanitation District Roaring Fork Investments, LLC Pre -Inclusion Agreement is recorded in the real property records of Garfield County, Colorado. PROPOSED DISTRICT BOUNDARIES/MAP The area to be served by the proposed District is located in the County of Garfield, generally situated between the Towns of Glenwood Springs and Carbondale and 30 miles north of Aspen. A legal description of the proposed District is attached hereto as Exhibit A. A map of the boundaries of the proposed District is attached hereto as Exhibit B. The total area to be included in the proposed District is approximately five hundred thirty-five (535) acres. PROPOSED LAND USE/POPULATION PROJECTIONS At present, property within the District is zoned Planned Unit Development (PUD) by the County of Garfield, which allows for 292 single-family residential attached and detached uses as well as the development of an eighteen -hole golf course. The PUD also provides for 30 affordable housing units to be constructed within the development; however, the property on which these units will be constructed will be excluded from the District. The property is not presently served with the facilities and/or services proposed to be provided by the District, nor does the County or any other special district have any plans to provide such services within a reasonable time and on a comparable basis. The proposed Financing Plan assumes approximately 47 patio home sites, 74 duplex lots, and 171 single-family lots together with the development of an eighteen -hole golf course. Based upon an estimated 2.5 persons per dwelling unit, the projected population within the District at final build out is approximately seven hundred thirty (730) persons. In order to facilitate the development of the property as planned, organized provision of facilities and services proposed to be provided by the District will be necessary. ASSESSED VALUATION The current assessed valuation of the Subject Property is assumed to be $0 as set forth in the Financial Plan section of this Service Plan. PRELIMINARY ENGINEERING ANALYSIS Facilities to be Constructed and/or Acquired. The District proposes to provide and/or acquire those facilities generally described in the Description of Proposed Services section above. A general description and preliminary engineering 4 survey of the facilities to be constructed and/or acquired are shown on Exhibits C-1 through C-3 attached hereto. Standards of Construction/Statement of Compatibility. The proposed District's water system will be constructed and maintained in accordance with the standards of the Colorado Department of Health, the County of Garfield, the RFWSD and other jurisdictions, as appropriate. The wastewater treatment and/or collection facilities will be designed and constructed and maintained in accordance with the standards of the Colorado Department of Health, the County of Garfield, the RFWSD, and other applicable local, state or federal rules and regulations. All streets and safety protection facilities to be dedicated to the County of Garfield will be constructed in accordance with the standards and specifications of the County. All other such facilities will be constructed in accordance with engineering and design requirements appropriate for the surrounding terrain, and shall comply with standards of the County of Garfield, the Colorado Department of Transportation, or other local public entities, as appropriate. All storm sewers and facilities will be constructed in accordance with the standards and specifications of the County of Garfield. Based on an analysis of jurisdictions which are interested parties in the Service Plan proceedings according to Colorado statutes, the proposed District's engineers have determined that the standards by which the facilities are to be constructed are compatible with the facilities of such other jurisdictions. Estimated Costs of Facilities. The estimated costs of the facilities to be constructed, installed and/or acquired by the proposed District are set forth in Exhibit C-3 attached hereto. A map and a table of estimated costs for each type of service or facility to be provided by the District are included. The total estimated cost for all facilities to serve the Subject Property including contingencies is in excess of Eight Million Dollars ($8,000,000). Any additional facilities required will be designed, constructed and paid for by the developer(s) of the Subject Property. Therefore, the total estimated cost of capital improvements to be constructed by the District is not projected to exceed Eight Million Seven Hundred Fifty Thousand Dollars ($8,750,000). 5 Operation and Maintenance/Estimated Costs. The proposed District intends to dedicate certain facilities constructed or acquired to the appropriate jurisdiction for operations and maintenance. The dedication of facilities shall be made to the appropriate jurisdiction free and clear of all liens and encumbrances not otherwise accepted by such jurisdiction. If the District assumes the obligation for the construction or operation and maintenance of facilities beyond that described herein, such action shall constitute a material modification of this Service Plan. Annual administrative, operational and maintenance expenses are estimated as shown in Exhibit D. Beginning in the year 2000, the Financial Plan projects that Ninety Thousand Dollars ($90,000) per year, from a mill levy assessed on all taxable property in the proposed District, will be sufficient to meet these expenses, together with an advance from the proponent of the District organization. If necessary, however, the proposed District reserves the right to supplement these revenues with additional revenue sources as permitted by law. The proposed District shall have the authority to repay the proponent of the District's organization for amounts advanced for operations and maintenance expenses and to seek electorate approval for such obligation to be deemed a multiple -fiscal year obligation, provided such obligation shall be subordinate to the proposed District's general obligation bonds issued for capital improvements. The mill levy cap proposed herein for repayment of the bonds does not apply to the District's ability to increase its mill levy as necessary for provision of operation and maintenance services to its taxpayers and service users. However, there are statutory and constitutional limits on the District's ability to increase its mill levy for provision of operation and maintenance services \v ithout an election. In the event that the proposed District is unable to dedicate the water system improvements to RFWSD the District, pursuant to state statute, will impose a schedule of rates, fees, tolls and other charges which are sufficient to provide for the ongoing operation and maintenance of the eater system by the District. FINANCIAL PLAN The following is a detailed Financial Plan describing how the proposed facilities and or services are to be financed, including the estimated costs of acquiring land, engineering scrN ices. legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and initial operation of the District. The Financial Plan demonstrates that, at the projected le‘el of 6 development, the proposed District has the ability to finance the facilities identified herein, and will be capable of discharging the proposed indebtedness on a reasonable basis. Financial Plan/Proposed Indebtedness. The Financial Plan attached hereto as Exhibit E describes how the proposed facilities and/or services are to be financed, including the estimated costs of engineering services, legal services, administrative services, proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and operation of the proposed District. The Financial Plan demonstrates the issuance of the debt and the anticipated repayment based on the projected development in the District's boundaries. The Financial Plan demonstrates that, at various projected levels of development, the proposed District has the ability to finance the facilities identified herein, and will be capable of discharging the proposed indebtedness on a reasonable basis. A. General Discussion. The provision of facilities by the proposed District will be primarily financed by the issuance of several series of general obligation bonds, secured by the ad valorem taxing authority of the proposed District with limitations as discussed below. The Financial Plan demonstrates the issuance of the debt and the anticipated repayment based on the projected development in the District boundaries. It is anticipated that the first bond issue will occur in 2000 and that the second bond issue will occur in 2002. Prior to that time, the organizational expenses and the construction costs for necessary improvements will be advanced by the developer(s) within the proposed District, subject to subsequent acquisition by the proposed District of the completed improvements and reimbursement to the developer(s) of such advanced construction costs. Any obligations issued or otherwise contracted for to reimburse the developer(s) for the organizational expenses and advanced construction costs shall be included within the debt limits described below. Pursuant to Section 32-1-1101, C.R.S., new money general obligation bonds would mature not more than twenty (20) years from the date of issuance, with the first maturity being not later than three (3) years from the date of their issuance. The proposed maximum voted interest rate is eighteen percent (18%) and the maximum rates and discounts will be determined at the time the bonds are sold by the proposed District and will reflect market conditions at the time of sale. The proposed District may also issue notes, certificates, debentures, or other evidences of indebtedness, which issuances shall be subject to the limitations set forth in this Service Plan. It is proposed that a total maximum amount of Fifteen Million Dollars ($15,000,000) of bonds that are secured by ad valorem property taxes (including general obligation and any bonds issued, the repayment of which is from the pledge of revenue from a capped debt service mill levy) 7 for various purposes be submitted to the electors of the proposed District for their approval at an election. The amount to be voted exceeds the amount of bonds anticipated to be sold, as shown in the Financial Plan, to allow for unforeseen contingencies and increases in construction costs due to inflation, and to cover all issuance costs, including capitalized interest, reserve funds, discounts, legal fees and other incidental costs of issuance; provided, however, in no event shall the amount of the bonds which are secured by ad valorem property taxes and outstanding at any one time exceed Fifteen Million Thousand Dollars ($15,000,000). Such limitation shall not be applicable to refundings of the bonds authorized to be issued hereunder. Based upon construction cost estimates and financing cost estimates as computed during the preparation of this Service Plan, it is anticipated that a total of Ten Million Thirty-five Thousand Dollars ($10,035,000) of bonds will be issued. B. Mill Levy Cap. The proposed District will have a mill levy assessed on all taxable property in the proposed District as a primary source of revenue for repayment of debt service and for operations and maintenance. Although the mill levy may vary depending upon the elected Board's decision to fund the projects contemplated in this Service Plan, it is estimated that a mill levy of thirty-seven (37) mills will produce revenue sufficient to support the operations and maintenance and debt retirement throughout the bond repayment period. In addition, the proposed District may capitalize interest to permit payment of interest during the time lapse between development of taxable properties and the collection of tax levies therefrom. Interest income through the reinvestment of construction funds, capitalized interest and annual tax receipts will provide additional funds. These revenue sources should be sufficient to retire the proposed indebtedness if growth occurs as projected; otherwise, increases in the mill levy and/or the imposition of rates, tolls, fees and charges may be necessary; but in no event shall the debt service mill levy exceed the Mill Levy Cap of 50 mills as defined below unless the Debt to Assessed Ratio is fifty percent (50%) or less. The District shall not increase the mill levy above 50 mills without the prior written consent of the Board of County Commissioners of Garfield County. In addition to property taxes, the District may also rely upon various other revenue sources authorized by law and this Service Plan to offset the expenses of capital construction and District management, operations and maintenance. These will include the power to assess fees, rates, tolls, penalties, or charges as provided in Title 32, as amended. C. Cost Summary and Bond Development. The District may authorize, issue, sell, and deliver such bonds, notes, contracts, reimbursement agreements, or other obligations evidencing or securing a borrowing (collectively, "Bonds") as are permitted by law, subject to the following limitations: 8 1. The total outstanding amount of Bonds for the payment of which the District promises to impose an ad valorem property tax ("General Obligation Bonds") shall not exceed Fifteen Million Dollars ($15,000,000). 2. All Bonds shall be issued in compliance with Section 32-1-1101(6), C.R.S., or any successor statute, and shall be exempt from registration under the Colorado Municipal Bond Supervision Act, or shall be registered under such Act. 3. The principal amount of any issue of General Obligation Bonds, together with any other outstanding issue of General Obligation Bonds of the District, may not at the time of issuance exceed fifty percent (50%) of the valuation for assessment of the taxable property in the District, as certified by the assessor (the foregoing condition is referred to herein as the "Debt Issuance Threshold"), except that the foregoing shall not apply to any of the following issues: (a) any issue of General Obligation Bonds meeting each of the following criteria: for the payment of such issue the District has covenanted to impose a mill levy which is limited to not more than fifty (50) mills (a mill being equal to 1/10 of 1¢) per annum until the Debt Issuance threshold is reached; provided that such General Obligation Bonds may provide that in the event the method of calculating assessed valuation is changed after the date of approval of this Service Plan by any change in law, change in method of calculation, or change in the percentage of actual valuation used to determine assessed valuation, the fifty (50) mill levy limitation herein provided may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board 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, are neither diminished nor enhanced as a result of such change; (b) (c) (d) an issue of General Obligation Bonds that is rated in one of the four highest rating categories by one or more nationally recognized organizations which regularly rate such obligations; an issue of General Obligation Bonds secured as to the payment of the principal and interest by an irrevocable and unconditional letter of credit, line of credit, or other credit enhancement issued by a depository institution qualified as defined in section 11-59-110(1)(e), C.R.S.; or an issue of General Obligation Bonds insured as to payment of the principal and interest by a policy of insurance issued by an insurance company qualified as defined in section 11-59-110(1)(f), C.R.S. 4. Notwithstanding the provisions of paragraph 3(a) above, if there are unlimited mill levy General Obligation Bonds of the District outstanding as of the date of issuance of any limited mill levy General Obligation Bonds, the Limited Mill Levy pledged to the payment of such limited mill levy General Obligation Bonds to be issued shall be established so that it is not more than fifty (50) mills less the mill levy required (based upon the then existing assessed valuation of the District) to pay the Maximum Annual Debt Service Requirements of all such unlimited mill levy General Obligation Bonds. In such event, the Limited Mill Levy so determined may nonetheless remain subject to adjustment as provided in paragraph 3(a) above. As used herein, the term "Maximum Annual Debt Service Requirements" means with regard to any particular issue of Bonds, the maximum annual payments of principal of and interest on all of said Bonds (excluding redemption premiums) to become due during any fiscal year while such Bonds are outstanding. The Financial Plan reflects the total amount of bonds to be sold to finance the completion, construction, acquisition and/or installation of the proposed facilities, including all costs and expenses related to the anticipated bond issuances. The amount of bonds sold will be based upon the final engineering estimates and/or actual construction contracts. Organizational costs, including legal fees, and capitalized engineering costs, are to be paid from the proceeds of each 10 bond issue. The interest rates as set forth in the Financial Plan are based upon the advice of Kirkpatrick Pettis, investment bankers for the proposed District. The Financial Plan projects the anticipated flow of funds and is based upon estimates of construction and project needs for bond proceeds to finance the proposed District's improvements. The District's engineer has evaluated the timing and cost estimate of the proposed District's improvements which are necessary to support the proposed absorptions of development as projected in the Financial Plan and has concurred with the assumptions. The Financial Plan sets forth the most reasonable estimate of growth within the proposed District and allows the Board of Directors a measure of flexibility such that the proposed District need not incur debt in excess of what it needs to meet a growing population's demands for facilities and services. It is unnecessary to obtain a bond rating or to secure credit enhancement for the issuance of the bonds in that the mill levy cap provides protection for the property owners currently within the District and those who will be the future taxpayers and service users within the District. If it is determined that a lower interest rate or other savings may result for the benefit of the District's taxpayers and service users from the enhancement of the bonds, the District may obtain a bond rating or secure credit enhancement for sale of the bonds. Refunding bonds may be issued as determined by the Board of Directors. In addition, the District will have authority to issue revenue bonds and other obligations in accordance with state law. The proposed District will not issue any general obligation bonds or enter into any multiple - fiscal year obligations until the final plat and accompanying documents, including but not limited to the "Roaring Fork Water and Sanitation District Roaring Fork Investments, LLC Pre -Inclusion Agreement" are recorded in the real property records of Garfield County, Colorado and evidence thereof is provided to the Board of County Commissioners of Garfield County. D. Economic Viability. The Financial Plan illustrates the estimated income and expenses for the District over a twenty(20) year period presuming issuance of two series or bonds maturing within a twenty (20) year period. The analysis reflects a total build -out period of thirteen (13) years for the development, and a mill levy of 37 mills. It is also assumed that the assessed valuation will be realized one year after construction and that tax collections will be realize t‘‘o years after initial construction. The Financial Plan contained in this Service Plan demonstrates the economic viability of the Rose Ranch Metropolitan District. 11 PROPOSED INTERGOVERNMENTAL AGREEMENT The District and the County intend to enter into an Intergovernmental Agreement ("IGA") which will provide for the District to fund its proportionate share of a separated grade crossing at the northern intersection of County Road 154 and State Highway 82. The IGA will provide for among other things, for the District to obtain electorate approval of any debt or long term financial obligations to the extent necessary to comply with any statutory or constitutional requirements. CONCLUSION It is submitted that this Service Plan for the proposed Rose Ranch Metropolitan District, as required by Section 32-1-203(2), C.R.S., establishes that: A. There is sufficient existing and projected need for organized service in the area to be serviced by the proposed District. The owner of the property to be served by the proposed District has received PUD approval from the County for the development of a 535.4 acre mixed-use community which will accommodate an eighteen -hole golf course, community recreation facilities, and 292 single-family residential units comprising approximately 47 patio home sites, 74 duplex lots, and 171 single-family lots. The development will also include approximately 30 affordable housing units. The property is now vacant and is not presently served by the County or any other special districts nor does the County or any other special district have any plans to provide such services within a reasonable time and on a comparable basis. Upon completion of the water and sanitary sewer systems, these facilities will be dedicated to RFWSD for operation and maintenance; however RFWSD does not consider it feasible, practical or desirable to fund the extension of the water and sewer lines and construct additional water and sanitary sewer facilities necessary to serve the property. In order to facilitate the development of the property within the District as planned, organized provision of facilities and services proposed to be provided by the District will be necessary. Therefore, there is sufficient existing and projected need for the organized services in this area. B. The existing service in the area to be served by the proposed District is inadequate for present and projected needs. Existing services are limited to fire protection services which are provided by Carbondale Rural Fire Protection Department and water and sanitary sewer services which are provided by RFWSD. The RFWSD does not have the financial capacity to construct the infrastructure improvements necessary to serve the proposed development within the District; 12 however once the District completes construction of the water and sanitary sewer facilities to serve the development the District intends to dedicate them to RFWSD for ongoing operation and maintenance. The projected needs for the community include a broad range of municipal services for the residents of the area as well as for the guests that will use the golf course and the related facilities. The District shall have the authority to provide for the design, acquisition, construction, installation and financing of certain water, sanitation, streets, safety protection, park and recreation facilities and services within and without the boundaries of the District. Therefore, the existing service in the area to be served is inadequate for present and projected needs. C. The proposed District is capable of providing economical and sufficient service to the area within its proposed boundaries. It has been established that the District is necessary to provide the services being proposed. The District will coordinate its efforts with RFWSD to provide water and sanitary sewer service to the development in the most efficient manner possible. The district structure will assure that a) the necessary services and improvements can be financed in the most favorable and efficient manner, and b) a uniform mill levy and reasonable tax burden on all property within the development is maintained through managed financing and coordinated completion of infrastructure improvements. Through the coordination of services and financing of public infrastructure improvements by the District the District will be capable of providing economical and sufficient services to the area served by the District. D. The area to be included in the proposed District does have or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. The District proposes to finance the capital improvements with the issuance of general obligation bonds secured by the ad valorem taxing authority of the District. Additional revenue which is expected to be pledged to the payment of the bonds is a Facilities Fee of $9,500 which will be imposed on each lot within the District and collected at the time the lot is sold. Based upon the Financial Plan, it is anticipated that the District will issue general obligation bonds in the amount of $10,035,000 to assist in financing of the improvements. The District will impose a debt service mill levy cap of 50 mills which shall mean that the mill levy pledged for the repayment of bonds or other obligations shall not exceed 50 mills. The financial plan demonstrates that the District will be capable of discharging the proposed bonds on a reasonable basis. 13 E. Adequate Service is not, or will not be, available to the area through the County or other existing municipal or quasi -municipal corporations, including special districts, within a reasonable time and on a comparable basis. Except for the County and the RFWSD there are no other municipalities or special districts providing services for this area. Therefore, adequate service is not available nor will it be available in the near future within the proposed District. F. The facility and service standards of the proposed District are compatible with the facility and service standards of each county within which the proposed Districts are located and each municipality which is an interested party under Section 32-1-204(1). All water and sanitary sewer facilities will be constructed in accordance with the standards of the County, RFWSD, the Colorado Department of Health and any other applicable local, state or federal rules and regulations. All streets and safety protection facilities, all storm sewers and facilities, and all park and recreation facilities will be constructed in accordance with the standards of the County, or other local public entities as appropriate. The facility and service standards will be comparable with other existing districts within the County. G. The proposal is in compliance with a master plan adopted pursuant to Section 30 -23 - 106. The proposed service plans are consistent with the Garfield County Master Plan as adopted by the Garfield County Planning Commission. The final plat has been approved by the Board of County Commissioners of Garfield County and is in compliance with each of the conditions and requirements of the Garfield County Master Plan. H. The proposal is in compliance with any duly adopted county, regional or state long range water quality management plan for the area. The plans for water and sanitary sewer treatment are in compliance with the clean water plan for Garfield County. 14 I. The creation of the proposed District will be in the best interests of the area proposed to be served. The District will be in the best interests of the area to be served and Garfield County. In addition, if additional land is proposed for development or is otherwise in need of service in the future, this District may be expanded to include those areas after approval of an amendment to the Service Plan. W:\Clients\506-Rose Ranch\Service Plan\ServicePlanV6.wpd 15