HomeMy WebLinkAboutresolution.council.098-00 RESOLUTION NO. ~ (Series of 2000)
A RESOLUTION OF THE CITY COUNCIL OF ASPEN, COLORADO, APPROVING THE
PROPOSED SERVICE PLAN FOR THE FIVETREES METROPOLITAN DISTRICT AND
MAKING FACTUAL FRqDINGS RELATIVE THERETO.
WHEREAS, there has been submitted to the City Council a proposed Service Plan for the
FiveTrees Metropolitan District, a proposed special district entirely within the jurisdictional
boundaries of the City of Aspen, in accordance with the Special District Act, Sections 32-1-101,
etseq., C.R.S.; and
WHEREAS, the Special District Act requires the City Council to review and approve the
Service Plan of any special district proposed to be organized within the boundaries of the City of
Aspen; and
WHEREAS. the City Council has reviewed the proposed Service Plan appended hereto as
Exhibit A, held a public hearing and received testimony and evidence from the proponents of the
district, City staff members, and members of the public; and
WHEREAS, the City Council desires to approve the proposed Service Plan and
memorialize its fmdings in accordance with the Special District Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
Section 1
That the Service Plan appended hereto for the FiveTrees Metropolitan District is hereby
approved.
FiveTrees
Metropolitan District
Serwce Plan
Moore Family Planned Unit Development
Aspen, Colorado
A. GENERAL REVIEW
Secdon A. 1 Introduction.
This serwce plan ("Service Plan") for the FiveTrees Metropolitan District shall serve as the
initial Service Plan for a special district proposed [o be organized m serve the needs of a new
community to be known as "Moore Family Planned Unit Development," (the
"Development"), or "FiveTrees," which is being developed by Zoom Flume, LLC, (the
"Developer"). It is a departure from typical service plans, in that most service plans
contemplate that the largest portion of the financial commitment of a special district will be
the funding of the acquisition and construction of public improvements. Such plans may and
often do contemplate the long term management and operation of those improvements, but
that aspect of the district's financial commitment is usually the smallest portion of its cash
flow projections, and in many cases shows only a minimal effort to finance operations.
This Service Plan reverses this financial emphasis, relymg on the contemplated district to
assure high levels of long term main[enance and operation of necessary public facilities and
services, the capital costs of which will be funded by contributions from the Developer. The
financial plan that is a pan of this Service Plan has been generated with a specific goal:
To cover all costs of operations through fees, charges and taxes while keeping
the total mill levy for operations at or below 15 mills.
In keeping with this goal, the financial plan contained in Exhibit E was written to cover the
cost of operating the District, and it was determined that the revenue generated by 15 mills
was required to defray the more than $250,000 per year in future operating costs that the
District will be expected to incur. The developer of the FiveTrees. Residential community
is responsible for constructing all necessary infrastructure and no initial capital expenditures
by the District are anticipated. As shown in Exhibit D, the developer will be funding initial
capital costs estimated to total $9,145.891. The majority of these funds will be expended an~
infrastructure constructed and completed in 2000 and 2001. While it is understood the
infrastructure to be constructed has a physical and economic life expecumcy, the Board of
Directors for the District will be responsible for future decisions regarding replacement and
funding of capital expenditures. The initial financial plan does not propose the issuance of
any debt.
Section A.2 District Descripuon.
FiveTrees Metropolitan District, hereinafter known as "The District," or "District," is
intended to provide the municipal services described herein to the benefit of residents in the
Moore Family Planned Unit Development (a.k.a. the FiveTrees Development), which is
located within the City of Aspen (City) adjacent to the Meadowood Subdivision, the Aspen
Highlands Subdivision and Aspen Highlands Village.
The adoption of this service plan is intended to ensure the proper coordination of powers and
authorities of the District and the City of Aspen and will help avoid confusion regarding the
separate, but coordinated purposes of both governments. The general provisions of this plan
apply only to the FiveTrees Metropolitan District which shall be solely responsible for the
operation and maintenance of this plan and the facilities and services it includes.
The "General Financial Plan" discussed in Section E, refers to an operating and maintenance
plan which will be used to facilitate the long term operation and maintenance of public
improvements and municipal services offered within the FiveTrees Development. The
FiveTrees Metropolitan District will be responsible foi' managing the operation of all of the
facilities and improvements needed for the Development, and will be responsible for the cost
of operation and maintenance of those public amenities unique to the area the district will
encompass.
As described in the General Financial Plan. the funding for the capital infrastructure and
equipmem necessary ro serve the Development will be a burden of the Developer. In
addition, the Developer may advance funds to the District for the operation and maintenance
of any facilities or infrastructure conveyed to the District, for the fulfillment of any service
obligation of the District, and for the administration of the District's business and affairs
until such time as the District begins to receive revenues sufficient to cover all such costs.
These advances, if approved by the District's Board of Directors and provided to the District
by the Developer, shall become an obligation of the District until repaid.
The District may also enter inte a Management Agreement, under which the District may
seek to contract with another entity for the provision of annual operations and maintenance
services and management services such as accounting, budget planning, record keeping and
basic district administration.
Section A.3 Benefits of a Metropolitan District
The establishment of the FiveTrees Metropolitan District as the entity, which will own and
operate the public facilities throughout the Development will allow for the generation of fees
and tax revenues sufficient to pay the costs of maintaining the capital improvements
necessary to serve its constituency. The creation of the District will also provide several
benefits for the inhabitants of the community, including: (a) coordinated administration of
future construction and operation of public improvements and delivery of improvements in
a timely manner; (b) maintenance of reasonable tax burden on all areas of the Developmem
through controlled management and operation of public improvements and services; c)
proper control of regional transportation systems; and (d) appropriate management of
required air quality and traffic monitoring programs. Each of these concepts is addressed in
greater detail in the following paragraphs.
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1. Build-out and Debt. As presently planned, build-out of the Development will
proceed in phases, each of which will require the extension and provision of public
services and facilities. The metropolitan district structure will assure the
implementation of each phase of public facilities will be primarily administered by
an elected board of directors consistent with the long term programs set forth in this
Service Plan.
There is no initial plan or proposal to issue any debt. All infrastructure required by
the FiveTrees Development will be funded and constructed by the Developer.
2. TABOR Considerations. It is presently planned that the Developer will construct all
of the public facilities intended to serve the Development and these facilities and
infrastructure will be conveyed to the District at an appropriate future date. Using the
revenues generated by taxes and fees. the District will own and operate all of the
public facilities intended to serve the development. By the terms of this Service Plan
the District will collect revenues from tax collections or. potentially, from service
users such as transit service users, recreational facility users, et cetera, as payment
for services rendered.
The District will authorize no initial debt but costs of operating and maintaining the
District and its facilities may be partially funded by an operating mill levy and the
District will be allowed to adjust its mill levy for that purpose pursuant to electoral
approval obtained at the outset. This allows the District to react operationally to
unpredictable swings in service needs, such as heavy snow years reqmring increased
operations and costs.
3. Regional Transportation. The greatest undertaking of the District. as reflected in this
Service Plan, is the provision of transportation services to the Development on a long
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term and consistent basis. It is intended that the District manage and operate a
segment of the area-wide regional transportation facilities serving the Development,
including the establishment and operation of dial-a-ride programs, participation in
a mass transit system, an air quality monitoring program, and alternative methods
and forms of mass transportation. These alternative forms of transportation may
include a chairlift to transport constituents, visitors and others from the Development
to adjacent recreation areas.
4. Assured Development in Accordance with City Approvals. Finally, the
establishment of a district can assure that the facilities constructed for the
Development will serve no more, nor less, than what the City approves as part of this
Service Plan process, and as part of the City's normal planning process for the
Development. It is the intent of the District to abide by all prior Pitldn County
approvals and conditions of approval for the Development and the District will hold
harmless the City against claims arising from the District's failure to perform any
condition required by Pitldn County during the Moore Family P.U.D. approval
process.
B. GENERAL PLANS FOR DEVELOPMENT
Section B.1 Introduction
In conjunction with the FiveTrees Development, it is necessary to establish the funding,
operation and maintenance of numerous facilities, structures and services which are
municipal in nature and which are intended to better serve the general public and the existing
and future population of the FiveTrees area. The facilities, structures and services to be
constructed and provided within the FiveTrees property will serve residents and visitors of
FiveTrees, the City of Aspen and Pitkin County and in order m properly manage the
provision of these essential services it is proposed that the Metropolitan District be organized
to act as the central service providing entity.
This Service Plan is submitted in accordance with Part 2 of the Special District Act (§32-1-
201 et seq., C.R.S.). It defines the powers and authorities of. as well as the limitations and
restrictions on FiveTrees Metropolitan District. It oudines the special district services to be
provided by the proposed District.
The sections, tables, and appendices of this service plan will demonstrate both a need for the
organization of a special district as well as the ability of the proposed District to provide
economical and efficient mun/cipal services to the proposed service area. Tkis document has
been prepared by Beach Resource Management, LLC of Aspen, Colorado, and Grimshaw
&Harring, P.C., of Denver, Colorado for the Districts' proponents.
Section B.2 Statutory Requirements
In order to document the ability of the proposed metropolitan district to reliably and
perpetually provide the core services being proposed, the requirements of C.R.S. § 32-1-
203, er seq., must be met. This statute provides that the City. of Aspen shall have the
authority to approve the proposed districts if the following can be satisfactorily
demonstrated:
1. There is sufficient existing and projected need for organized service in the area to be
served.
2. That existing service in the area to be served by the proposed district is inadequate
for present and projected needs.
3. The proposed district is capable of providing economical and sufficient service
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within its proposed boundary.
4. The District has. or will have the financial ability to provide the proposed services
on a reasonable basis. The Service Plan must also show that an adequate service
the type of services to be included within the District) ~s not available through the
City or some other municipal government within a reasonable time or on a
comparable basis; that the facility and service standards are compatible with
standards of the City; the proposed service plan is in substantial compliance with the
Aspen Area Community Plan and any duly adopted City, regional or state long range
water quality management plan for the area; and that the creation of the District w'fll
be in the best interests of the hrea proposed to be served. This service plan addresses
each of these requirements and the plan demonstrates that all requirements of C.R.S.
§ 32-1-202 and 203 will be satisfactorily met.
Section B.3 Proposed Services
As a result of the development of the Moore Family Planned Unit Development and adjacent
properties the Pitkin County Commissioners, in approving the development plans, required
specific conditions be met in order to permit the proposed development to occur. These
conditions include the construction of certain public facilities and structures, the
establishment and/or funding of certain public programs and the provision of certain public
services. Since these services are not available through either Pitkin County or the City of
Aspen, the District's proponents have determined that these services would be more
efficiently and reliably provided by a special district. The District is proposed to be
incorporated for the following multiple purposes and to provide the following municipal
services:
i. Street improvements including maintenance of roads, streets and bridges, traffic
medians, road right-of-ways, street lighting, parking lots and/or parking structures, curb
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and gutter, road drainage ways, culverts, pedestrian walkways, storm drainage, under
drain systems, maintenance of bus and/or alternative mass transit transfer points, and
snow plowing/removal. Street improvements include both in-district and out-of-district
improvements that may be required by the City, its engineering standards or
environmental conditions.
2. Safety Protection including the funding of capital ~mprovements associated with
transportation, including street signs, transportation safety, bus shelters, traffic lights and
controls.
3. Drainage systems including establishing, maintaimng and operating storm sewer
systems, drainage ways, under drain systems for both roadways and utility systems, flood
and debris control structures, containment and diversion su'ucmres, and snowmelt areas.
4. Public parks and recreation including the establishment, operation and maintenance
of a public hike/bike/ski trail system, a chairlift to access Aspen Highlands Ski Area.
The implementation, operation and maintenance of a raw water irrigation system for
irrigation and maintenance of Iandscaping in public areas, traffic medians, parkways, and
open spaces. Control of weeds and other noxious plants in public areas, road right-of-
ways and open space and trails.
5. Transportation including the establishment and operation of dial-a-ride programs,
participation in a mass transit system, an mr quality monitoring program, and alternative
methods and forms of mass transportation. A surface lift is envisioned to reduce traffic
from FiveTrees and the Aspen School District to Aspen Highlands Ski Area.
The above list of services is intended to provide a general description of the services,
facilities and structures to be offered by the District. Services not specifically identified but
which logically fall within the above described areas may be provided but purposes and
services such as ftre protection, potable water or sanitary sewer (waste water) are not being
proposed to be provided by the District.
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Section B.4 Existing Governments and Services
The City of Aspen is the only general purpose government currently providing mumcipal
servtces to the proposed service area. However, there are a number of special districts
providing limited services including the Aspen Consolidated Sanitation District, the Aspen
Fire Protection District, the Aspen Valley Hospital District, the Roaring Fork Transit
Authority, the Pitkin County Library District. the Aspen School District and Colorado
Mountain College, the Aspen Ambulance District and the Colorado River Water
Conservation District.
The City currently provides services related to public safety, the removal of snow and the
maintenance of public roadways, potable water and irrigation water service to individual
customers. The City owns, operates, maintains and rehabilitates the potable water system
while the District will own, operate and maintain a raw water irrigation system within the
boundaries of the District. Fire protection and suppression is provided by the Aspen Fire
Protection District and the Aspen Consolidated Sanitation District will collect and treat all
waste water and sanitary sewer flows emanating from FiveTrees' residential areas.
The organizers of the Districts propose to provide funding to the Roaring Fork Transit
Authority for the provision of increased mass transportation services within the District.
These services will be required due to anticipated increases in fidership projected to result
from the development of proper~y within the District.
The District will be responsible establishing and operating a Dial-A-Ride program which is
intended to reduce the number of automobile trips in and out of the District each day by
providing on demand transportation services to the residences and businesses within the
District.
It is not the intent of the proposed District to duplicate the services now being provided by
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any of these governments or their respective agencies and/or departments. The proposed
services are intended to be provided within areas not presently serviced by these
governments. Further, the proposed district will provide services within an area which may
be serviced more efficiently and effectively by a new municipal entity.
While the proposed service area lies within the City of Aspen, none of the proposed
municipal services will be made available to the District nor are any of the intended services
anticipated to be available in the reasonably near future.
While the City of Aspen has the ability to provide the road and drainage services and a
portion of the transportation services to the proposed metropolitan district area, it has
determined that the provision of operation and maintenance services for what is proposed to
be primarily residential roads and streets may not be in the best interest of existing City
residents. Therefore, in order to operate and maintain these improvements until such t/me
as the City or some other government may choose to operate and maintain them, it is clear
that several advantages may accrue from the establishment of the proposed District. These
advantages are explained in more detail in the following section.
Section B.5 Need for Proposed Services
The area to be included within the proposed metropolitan districts is described in Exhibits
A, B and C, attached hereto and discussed below. It is anticipated that the full development
of the Moore Family P.U.D. will result in the construction of 71 residential living units
consisting of 40 single family residences and 31 affordable housing units.
In order to provide a safe, reliable and reasonable level of services to support this residential
development, the organizers of the proposed metropolitan district have concluded that certain
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benefits would be realized by the establishment of the district when compared m services
provided by a private entity or a homeowners association. For example, a special district
provides a perpetual entity ensunng the long term viability of constructing, operating and
maintaining the numerous public improvements required of the FiveTrees Development.
The improvements and servmes associated with them are not all available through a single
existing government enuty, nor has any government entity offered to provide these serwces
at the desired level of service.
The establishment of a metropolitan district provides a mechanism for the collection of ad
valorem taxes, fees and charges to fairly assess residential property owners for their pro rata
share of capital, operating and maintenance costs within the new communities. Costs for
insuring public facilities, or providing public services, may be reduced by utilizing the
advantages of the Colorado Governmental Immunity Act.
The establishment of a metropolitan district also provides for revenue sharing from specific
ownership taxes as well as opportunities to apply for various governmental grants and
subsidies for programs and projects that are not otherwise available to private entities.
Section B.6 Compliance with County Master Plan and the Aspen Area Community Plan
During the Pitkin County Land Use review process, the overall master plan for the Moore
Family P.U.D. development was found (by Pitkin County's Planning and Zoning
Commission) to be consistent with both the master plan for Pitkin County and the Aspen
Area Community Plan (AACP). While the comprehensive County review process ensures
compliance with the County Master Plan, the stated goals of the Aspen Area Community
Plan include revitalizing the permanent community, providing transportation alternatives,
promoting environmentally sustainable development and maintaining design quality and
historic compatibility. These goals were found to have been met by Pitkin County during its
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review of the Moore Farnily P.U.D. project. The overall plans for the organization of the
District, the services to be provided and the area to be served have also been developed to
comply with and effect both the goals of Pitkin County's Master Plan and the Aspen Area
Community Plan. Subsequent to the receipt of all land use approvals, the Moore Family
P.U.D. property was annexed into the City of Aspen.
Section B.7 Compliance with State Long-Range Water Quality Management Plan
This Service Plan and the proposed services to be provided will comply with the current Area
Wide Water Quality Management Plan (208 Plan) adopted by the Northwest Regional
Council of Governments, which plan includes Pitkin County, City of Aspen and the proposed
service area of the District.
C. LOCATION AND CONFIGURATION OF DISTRICT.
The District will initially serve the area including the Moore Family P.U.D. property. The
proposed District boundaries and the overall service area will be contiguous and the
boundaries are described in the legal descriptions attached as Exh/bit "A" and generally
shown in the proposed Vicinity map attached as Exhibit "B". Proposed District boundaries
are illustrated on the attached Exhibit "C".
The "service area" (the area legally permitted to be served by the District) will consist of the
entire FiveTrees Development as described above, including approximately 198.80 acres.
The District will have power to impose taxes and other fees or charges allowed by law within
its legal boundaries and will provide the municipal services described in this plan throughout
its service area.
Under Colorado law, the fee owner or owners of one hundred percent of any property
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proposed for inclusion may petition the Board of Directors of a District for inclusion, or
annexation, of property into the District. Additionally, less than one hundred percent of the
owners of an area may petition the District for an election on the question of including a
specific area. or the board may adopt a Resolution calling for an election on such an
inclusion of property. It is therefore possible that additional property may be included in the
District. The Board of Directors will have discretion to pennit inclusions without amending
this Service Plan.
D. LONG-TERM DISTRICT PLAN.
No long term debt is presently anticipated or proposed except as may be necessary for the
reasonable operation and maintenance of the District until such time as the District's
revenues are sufficient to cover these reasonable costs. Initially, it is anticipated that the
District's Board of Directors will seek funding in the form of an operaung loan from the
Developer or other source, which loan shall become a short term obligation of the district to
be repaid by the District with interest upon receipt of sufficient revenues from taxes or
service fees.
In the future, the electorate of the District will have the opportunity to consider whether the
consolidation of services with the City of Aspen or, other service agency is practical, feasible
and desirable, and ff such decision is affirmative, the dissolution of the District in accordance
with state law could be effected. Further, since 100% of the District will lie within the City
of Aspen, the City may determine in the future that it is in the best interest of the City to
dissolve the District and all services provided by the District would be provided by the City.
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E. GENERAL FINANCIAL PLAN
A schedule of appreciating property assessments has been developed and compared to
proposed debt requirements and the estimated annual costs of operation and maintenance.
The results of this comparative analysis indicate an ability to meet all District expenditures
as described in more detail below.
The District will have the power to assess ad valorem taxes, to receive specific ownership
taxes, to levy rates, fees and charges and to issue general obligation bonds with the
authorization of the constituents and revenue bonds by board approval. The District's Board
of Directors will from time to time, detenuine what expenditures should be made by the
District and what options for debt issuance and other revenues should be exercised.
It is anticipated that a combined mill levy of fifteen mills will be established by the District,
ro fund the operations and maintenance and to repay any indebtedness incurred by the
District. But in each case, the overall mill levy may be reduced to that amount which
supports operations and maintenance. In addition, as discussed above, the District may at that
time consider options for consolidation or dissolution.
A comprehensive list of Capital Contributions by the Developer is included as Exhibit "D"
and a Cash Flow Forecast including both operations and maintenance and capital
construction requirements has been included as Exhibit "E".
The District will also be entitled to a share of specific ownership taxes collected by the
County Treasurer's Office and other fees, rates and/or service charges assessed within the
District. These additional revenues can be used by the Districts to offset the required
expenditures.
Fees and charges may be set to appropriately assess users for specific services purchased
from or provided by the District.
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Section E. 1 Assessed Valuation and Population
Assessed Valuation
The assessed valuation of the District is assumed to increase with the sale of lots and the
build-out of seventy-one residential properties.
The combined assessed valuations are projected to increase from $47 million as of January
1, 2000 to approximately $49.5 million as of January 2001. Property tax revenues are
anticipated to increase in direct relationship to increases in assessed value but with full
recognition of the requirements and limits of the TABOR Amendment.
As mentioned previously, there are a number of special districts and/or local governments
providing limited services to the proposed Development. The existing mill levies of each
of these taxing entities is described within the following table:
TABLE OF EXISTING MILL LEVIES
FiveTrees Development
Taxing Entity Present Mill Levy
Pitl,dn County (all sources) 7.145
Aspen School District 8.265
Aspen Fire Protection District 1.261
Aspen Consolidated Sanitation 0.234
Colorado Mountain College 3.655
Colorado River Water Conservation 0.282
Aspen Valley Hospital District 1.500
Aspen Valley Ambulance DisuSct 0.230
Total Existing Mill Levies 22.572
As a result of the existing taxing entities, the total mill levy requirement after the
establishment of the District is proposed to be 37.575 mills (15 mills is estimated to be
required by the District), which compares favorably with numerous existing taxing districts
in Pitkin County. The mill levy may also increase as a result of the recent annexation of the
FiveTrees area within the City of Aspen. The City's current mill levy rate is 5.401 and the
District is aware that the City intends to include FiveTrees in its tax base at some point in the
future.
A mill is one-tenth of one cent or one dollar in tax for every $1,000 of assessed value. Since
Colorado's Gallagher Amendment prohibits residential property owners from paying more
than 45% of all property taxes, residential property tax rates are lower than tax rates for either
commercial property or vacant land. This tax rate has been in steady decline from 30% in
1983 until 1998 when it stabilized for the first consecutive year period at 9.74%.
Therefore, the current residential assessment rate is 9.74% of the fair market value and the
vacant land assessment rate is 29%. A $200,000 residential property within the proposed
district would be taxed on an assessed value of $19,480 and would be subject to total annual
property taxes of $731.96. A residential property, with an actual value of $1,000,000 would
have an assessed value of $97,400 and a tax liability of $3,659.80.
Population
Total population estimates within the District at full build-out have been projected at 255
persons for the FiveTrees Development. This includes 160 residents in the free market
sector and 95 residents in the affordable housing component. These population
projections include full time, part-time and seasonal residency and it is estimated that full
build-ont populations will be reached approximately 6 years after the commencement of
the development. The following table illustrates the anticipated population growth within
the District:
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Population Projections
FiveTrees Development
Year Population
1999 0
2000 35
2001 90
2002 55
2003 45
2004 30
Total 255
Section E.2 Property Tax Collections and Other Revenues
Property Tax Collections
The Pitldn County Treasurer's Office i§ responsible for the collection of all ad valorem taxes
levied within the County. All property listed and valued as of January 1 each year will be
included in the next year's tax roll. All taxes required to be paid are due in full by June 15~
and the County disburses 95% of the taxes collected in one month by the 10'h day of the
following month. Although taxes are received by the County on a continuous basis, the
primary receipt dates are February 15, April 30 and June 15. Therefore, the bulk of tax
receipts to the District will be received in March, May and July. Pitkin County currently
retains 5% of all taxes collected on behalf of most special districts.
The District proposes to levy the entire 15 mills for operations, maintenance and
administration of the District; no debt is proposed to be issued. The Cash Flow Forecast
included in the General Financial Plan indicates that the property tax assessments will
commence in 2000 with irdtiai ad valorem tax receipts of $204,450 being received in 2001.
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Actual property values are projected to increase substantially during build-out but as the
actual values go up, the assessed values for some of the affordable housing property may
actually decrease because residential property is assessed at a lower rate than vacant land
(9.74% v. 29%). Nevertheless, increases in assessed value for free market properties will
create a positive cash flow in taxes generated and these increases are projected to offset
increases in demands for services from the district.
Other Revenues
In addition to ad valorem taxes, the District will be entitled m a pro rata share of specific
ownership taxes collected for vehicles registered within Pickin County. The disbursements
for these taxes are made on the same basis as for property taxes and are received by the
District throughout the year. It is projected that the District's portion of specific ownership
taxes received in 2001 are projected at $12,267. A complete schedule of all proposed tax
receipts by the District is included in the Cash Flow Forecast (Exhibit "E").
The District will also be entitled to establish certain fees and charges for services provided
and may elect to equitably distribute the actual costs of providing those services to the end
user. The District's Board of Directors will determine which services will be subject to fees
or charges and the level of fees and charges to be assessed from time to time. The District's
Boards will also determine the percentage of income ro be derived from each type of
revenue.
Section E.3 Proposed Capital Expenditures & Debt
As briefly described previously, the District anticipates the inclusion of residential roadways,
a comprehensive storm drainage system, transportation and mass transit facilities, including
sidewalks, street lighting, traffic s~gnals, signs, traffic medians and other public safety
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improvements, public h/ke/bike/ski trails and common areas including public open spaces,
a raw water irrigation system serving open spaces, lawns and gardens, a surface lift from the
subdivision to Aspen Highlands Village and other infrastructure and facilities may that be
required by the District. The District does not propose m issue any debt for the construction
of these facilities and no debt authorization is proposed ro be sought during the organization
of the district.
The above list is meant to be indicative of the types of improvements to be included in the
District and should not be considered to be either all inclusive, or a commitment to build.
As is customary, the Board of Directors for the District will be responsible for detenuimng
the type and timing of ail improvements and the authorization of any future District debt.
By way of example, when bus ridership between Aspen Highlands Village and FiveTrees
reaches 764 non-skier transit trips per day a new bus will need to be added to the RFTA fleet.
Pursuant to the Maroon Creek Corridor Detailed Transit Plan, when ridership reaches a set
point, the Districts established to operate and maintain the Aspen Highlands Village and
FiveTrees subdivision will provide a new bus to RFTA at an estimated capital cost of
$260,000 in 1998 dollars. While the bus may also be leased, in addition to any capital cost.
annual operation and maintenance costs of $232,000 must also be provided. The FiveTrees
Metropolitan District will contribute approximately 5% of these costs since ridership within
FiveTrees is estimated to equal this percentage amount.
Similarly, the Dial-A-Ride Program, ar full development, may require the acquisition of
passenger vans with a capital cost of approximately $70,000 and annual operating costs of
$229,000. It is anticipated that these costs will be shared on a pro-rata basis with the Aspen
Highlands Metropolitan Districts, with those districts paying an estimated 75% share of these
COSTS.
It is currently estimated that the FiveTrees Metropolitan District would pay approximately
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25% of the Dial-A-Ride costs with this share being based on the projected future demand for
Dial-A-Ride services within FiveTrees. As further described in the Cash Flow Forecast. it
is anticipated the costs of this program will be funded initially by property taxes. At the
discretion of the Board, this approach could be modified to also include the payment of
service fees to the extent they are not cost prohibitive. Costs associated with the mass transit
system are estimated to be shared between FiveTrees and Aspen Highlands Metropolitan
Districts on a 5% to 95% basis.
Section E.4 Proposed Operations and Maintenance
As a departure from the usual "start up" special district proposal, the District's initial mill
levy will be assessed to cover operations, maintenance, administration and transportation
services. Overall operations and maintenance services will initially be contracted to private
local businesses to take advantage of existing expertise and to limit both operational and
capital (equipment) cost requirements. The District may also elect to enter into an
Intergovernmental Agreement with the Aspen Highlands Commercial Metropolitan District
for the provision of services related to the operations and maintenance of roads, trails.
transportation, safety, drainage, et cetera, since it is anticipated that certain efficiencies could
be recognized through the maintenance of facilities and the promsion of services over a
larger immediate area. Ski lift operations and maintenance is anticipated to be provided
through an agreement with the Aspen Skiing Company.
Annual operations and maintenance requirements include administrative services such as
management and accounting, required special district audits, reporting, record keeping and
compliance, legal counsel, engineering, and constituent services. The costs associated with
the provision of the services has been included within, the initial budget projections.
Additionally, annual maintenance requirements are anticipated to include snow plowing,
20
sanding and snow removal from roadways, sidewalks and public common areas, landscape
maintenance, mowing, ~rngation, weed and dust control of common areas, open space and
trails, maintenance of traffic medians, drainage ways, air quality mouitoring, storm sewer
system cleaning and repairs, road and bridge repairs, s~gn replacement, traffic control s~eet
sweeping, lift facilities and required ancillary maintenance services.
An operational budget for the first twenty years of operation has been included in the Cash
Flow Forecast. All costs for operations and maintenance have been based on industry norms
or where possible, on actual estimates from independent contractors and persons
knowledgeable with typical metropolitan district operation and maintenance costs.
Included within the O&M budget is a 3% allowance for emergency funding as required by
the TABOR Amendment as well as a small sinking fund for the eventual acquisition of
maintenance oriented capital equipment. Initially, there are no accommodations for District
employees although costs allocated for contract services may be converted to District service
costs if such a conversion becomes warranted.
Section E.5 Repayment
As detailed in the attached pro forma budget, repayment of all authorized short term
operational loans shall be accomplished through either fee revenues, developer contributions
or tax receipts. It is currently proposed that the District will borrow initial operating funds
from the Developer or other lender and these funds will be repaid with interest as District
revenues or repayment funds become available. There is no cu~rem proposal to ~ssue any
long term debt and any decision on the issuance of future debt will be made by the District's
Board of Directors and electorate.
21
Section E.6 Proposed Initial Budget
If so requested by Pitldn County, an annual report as described in C.R.S. § 32-1-207 (3) (c)
will be filed with the County in the form prescribed by the County. The annual mill levy
changes will be certified by the District and submitted no later than December 15"' of each
year.
The Proposed Initial Budget, as set forth in the Cash Flow Forecast, indicates that developer
contributions to infrastructure within the District will be required through the year 2001.
Developer contributions and/or loans to the District for operations and maintenance of the
District and its facilities will be required until the District has adequate revenues to cover
these expenditures, which is anticipated to occur in 2001. Beginning in 2001, the revenue
generated by the assessed valuations of the District, will be commensurate to cover all
expenditures proposed for the operations, maintenance and administration of the District.
The first full year of operation will require expenditures of $171,638 for operations and
maintenance. During the first two years of operation, the Developer expects to fund and
convey approximately $9,145,591 of District related infrastructure costs to the District.
None of these costs are to be reimbursed to the Developer. As the District's facilities are
constructed, made operational, and conveyed to the District. and as the population of the
District increases, the overall expenditures for operations and maintenance will increase.
Such increases in O&M costs have been forecast and included within the Cash Flow
Forecast.
In the first stages of development within the District, administrative expenses will include
costs associated with managing infrastructure conveyances to the District, including legal,
project administration and engineering review costs. In addition, costs associated with
District accounting, record keeping, audits and Pitldn County tax collection fees are also
included. A review of the Cash Flow Forecast indicates that by year 2004, costs of operation,
maintenance and debt service become relatively stable and are affected primarily by
inflationary increases. Required funding of a perpetual 3% emergency fund vanes only as
a result of the total budget figure and cost variances for the 5% Pitkin County Treasurer's
collection fee are a result of changes in tax receipts. Notes m the pro forma budget are
included in the Cash Flow Forecast and revenue limitations under both TABOR and the
5.5% revenue growth caps have been considered within the thirty year projections.
F. PRELIMINARY ENGINEERING PLAN
The FiveTrees Developer intends to construct streets, roadways, transportation and traffic
facilities, box culverts, storm drainage ways and storm sewers, pedestrian walkways, ski
access routes, hiking and biking trails, and public safety systems, as parr of their master
planned developments. The following sections provide a general overview of the proposed
construction of these facilities.
Section F. 1 Street Improvements
It is proposed that 2000 linear feet of typical 28' road section, a portion of which will have
traditional curb and gutter, will be built in the FiveTrees Development. Sidewalks are
planned for construction in only a small part of the Development. There will be 28' of Type
11I guardrall installed at the Moore Drive bridge and 372' of Type 1211 guardrall at various road
curves
23
Section F.2 Safety Protection
Numerous transportation systems and services are anticipated to be provided by the District
including, fourteen street, warmng and traffic safety signs, street lighting, trafftc controls and
lights, parking lots, bus shelters and mass transit facilities and programs.
Section F.3 Public Sanitation - Storm Sewer and Drainage
All drainage facilities will be designed and constructed to pass the 100 year storm plus the
100 year snowmelt.
Total linear feet of storm sewer required for the FiveTrees Development includes 100 linear
feet of 12" CMP and 398 linear feet of 18" CMP. Grading and drainage work within the
District may lead to other under drain systems being constructed and connected to the
District's drainage system which are not detailed above.
In addition to the subsurface storm drains, above ground ditch designs call for 2.485 linear
feet of Type II ditch and 480 linear feet of Type I ditch with 6" rip-rap. All ditch slopes will
meet current City Standards.
Section F.4 Parks and Recreation
The District intends to establish, operate and maintain a system of bike/hike/ski trails within
its boundaries which will extend and compliment existing hike/bike trails in the immediate
area. The hike~ike trails will also include open spaces and areas which may include irrigated
lands.
The District will also install, operate and maintain a chairlift from the Aspen School District
to the Aspen Highlands Ski Area. This lift is intended to serve the student athletes of the
School District and the Aspen Valley Ski Club's ski and snowboard teams and residents of
the FiveTrees Development. Installation will occur in 2000 ar an estimated cost of
$1,200,000 and may be available for operation during the 2000-2001 winter season. There
is no snowmaking proposed to be provided by the district and all maintenance of the lift will
be performed by contract with the Aspen Skiing Company.
Section F.5 Transportation
Included within the transportation services to be provided are several programs to reduce the
amount of vehicle trips along Maroon Creek Road. Presently, it is anticipated that the
combined Aspen Highlands Village and FiveTrees developments will generate 764 daily
transit raps at full build-out and as these trips increase certain capital expenditures and
programs will be mggered. Public transportation requirements will trigger the acquisition
or lease of one passenger bus and one or more 12-15 passenger vans. These vehicles will be
acquired as the daily transit trips increase from Aspen Highlands Village and FiveTrees. The
cost of purchasing or leasing and operating these buses and vans will be shared on a pro-rata
basis between Aspen Highlands Village and FiveTrees.
It has been estimated by the Roaring Fork Transit Authority that the present Maroon Creek
transit system is running at 70% capacity and therefore some additional capacity exists that
can be consumed prior to the bus actually be acquired. It is projected however, that two
passenger vans will be necessary at the commencement of the development to meet Dial-A-
Ride expectations and appropriations for their acquisition have been delineated within the
proposed budget.
Section F.6 Water
25
The District will own and operate a raw water distribution system which will make irrigation
water supplies available throughout the District. These supplies will be available for both
public and private purposes and will include the irrigation of lawns and gardens, open space
and parks and for purposes of wildfire suppression, dust control, street maintenance, et
cetera.
The irrigation system is proposed to include 1,080 If of 8" PVC main, 230 If of 12" PVC
main and miscellaneous fittings, valves and field hydrants. The system will remmn public
to individual property lines and the public system will be operated, maintained, repaired and
replaced by the District. The District Board may elect to establish fees for the provision of
raw water for all purposes described above.
Section F.7 Compliance with City Standards and Specifications
All City adopted Standards and Specifications for facilities not covered by District Standards
and Specifications or District Rules and Regulations shall be adhered to, and any variance
ro any City Standards will be requested in writing pnor to construction or implementation.
It is presently anticipated however, that the District will adopt its own Rules and Regulations
and Standards and Specifications for all construction of municipal and/or public facilities and
sumctures to be constructed within the District and these Rules, Regulations, Standards and
Specifications are anticipated to be at least as comprehensive as those of the City.
G. DIRECTORS
The initial Board of Directors for the District will be made up of five District constituents.
Three will be elected for four year terms, and two will be elected for two year terms which
at their conclusion will convert to four year terms. By statute, staggered-term elections for
District board members are held every two years during the month of May.
26
The initial Board of Directors for the District will determine and approve the initial by-laws,
rules and regulations and standards and specifications of the District, enter into such
intergovernmental agreements as are consistent with this Service Plan, establish primary
district policies and will be responsible for the effective carrying out of all rules, regulations
and policies. The District wiI1 thereafter operate according the laws of the State of Colorado
as political subdivisions of the State.
H. MODIFICATION OF SERVICE PLAN
The District shall obtain the prior approval of the City before making any material
modifications to this service plan as noted herein. Material modifications shall include
modifications of a basic or essential nature including any additions to the types of services
initially provided by the District or a change in debt limits. The examples above are not an
exclusive list of all actions which may be identified as a material modification.
I. RESOLUTION OF APPROVAL
The District agrees to incorporate the City of Aspen's Resolution of Approval, including any
conditions on such approval into the Service Plan presented to the appropriate District
Court.
d. DISCLOSURE
The current petitioners and the District will take steps to insure the developers of the property
located within the District provides adequate written notice at the time of closing to initial
purchasers of land and property in the District regarding the existence of any additional taxes,
charges, or assessments which may be imposed in connection with the District. The District
shall also record a statement against the property within the DisU:ict, at such time as the
property is legally included therein, which statement includes notice of the existence of the
27
District, average expected tax levy, maximum expected tax levy, and maximum allowed tax
levy.
K. INTERGOVERNMENTAL AGREEMENTS
The following describes proposed intergovernmental agreements:
(1) The District may participate in a joint operating agreements with the Aspen
Highlands Commercial Metropolitan District as disclosed herein.
(2) The District intends to enter into an agreement with the Roaring Fork Transit
Authority for the provision of mass transportation services within the District.
(3) The District may enter into an agreement with the City of Aspen for provision of
untreated raw water for delivery through the District's proposed raw water imgation
system.
(4) The District may participate in joint financing agreements with other public or
private entities in pursuit of the goals and intentions contained in this Service Plan.
L. STATUTORY REQUIREMENTS
It is submitted that this Service Plan for the FiveTrees Metropolitan District meets the
requirements of the Special District Control Act, the applicable requirements of the Colorado
Constitution, and those of the City of Aspen. It is further submitted that:
(a) There is sufficient existing and projected need for organized service in the area to be
serviced by the District;
(b) The existing service in the area m be served by the District is inadequate for
projected needs;
(c) The District is capable of providing economical and sufficient service to the area
28
within its boundaries:
(d) The area within the District will have, the financial ability to discharge the proposed
initial operating loan on a reasonable basis;
(e) Adequate service is not, and will not be, available to the area through the City or
other existing municipal or quasi-municipai corporations, including existing special
Districts (other than the District), within a reasonable time and on a comparable
basis;
(f) The facility and service standards of the District are compatible with the facility and
service standards of the City and each municipality which is an interested party under
Section 32-1-204(I), Colorado Revised Statutes;
(g) The Service Plan is in substantial compliance with any applicable comprehensive
master plans adopted by the City;
(h) The Service Plan is in compliance with any duly adopted and applicable long-range
water quality management plan and drainage plan for the area; and
(i) The Service Plan will be in the best interests of the area served by the District.
29
Exhibit A
Legal Description
29
03/D7/00 TUE i0:06 FAX i 970 94S $945 SCHMUESER GORDON ~EYER ~002
(970) 945-1004 ~c~x,~,~ _ ~ 118 WeSt 6tn, Suite 200
FAX (970) 945~5948 ~~ ~'~';" Glenwood Springs, CO 81601
March 3, 2000
#93205I
5 TREES METROPOLITAN DISTRICT BOUNDARY
Beginning ar the Nt/4 comer of said Section 14, with all bearings being relative to a bearing of 589°55'48"E between N 1/4
comer and the northeast comer of said Section 14; lhance along said north-south centerline; thence S00°I 5'39"E 202.50 feet to
a point on the north line ora parcel of land described in Book 331 at Page 623 of lbo Pit.kin County recordS; thence along the
bounflaxy of said parcel the following six (6) courses:
I) S73 =59'09"E, 210.00 feet; thence
2) S33°15'39'E, 115.00 feet;thence
3) S19°05'39"E, 140.00 fee,;thence
4) S35°55'39"E, 120.00 feet; thence
5) S19~30'39"E, 150.93 feet;thence
6) N73°59'09"W 447.05 feet to a point on said norlta-south c~nterline of Section 14;
thence along said north-south cemerli~e S00~ 15'39"E 2040.97 feet to the southwest comer of the SWI/4NEI/4 of said Section
14; flxence S00%$'39'E 1336,71 feet to the southwest corner of the N 1/2SE1/4; thence along the south ~ine of said NI/2SE1/4
of Section 14, sgg°0T53"E, 2621.80 feet to the S 1/16 corner of said Section 14; Lhence along said east line of Section 14,
N00°15'SY'E 1361.77 feet to the El/4 comer of said Section 14, thence enntinuing along said east line of Section 14,
N00°03'43'~E; 1328.69 feet to the northeast comer of the SE I/4NEI/4 of sniff Section 14; thence along the north line of sniff
SEI/4NE1/4 Section 14~ $89°54'tg"w 1320.59 feet xo the northwest corner of said SE I/4NEI/4 Section 14~ ~e~ee along the
east line of the NW1/4NE1/4 of Section 14, N00°06'0$"W 1332.50 feet W the northeast corner of said NW1/4NEt/4 of
Section 14~ 5aid point being also the southe~-~t corner of the WI/2SEI/4 of Sectioo 11; thence along the east line of said
WI/2SE1/4 of Section 1 t N00°O4'0I"E, 1471.13 feet to a point on the southerly fight-of, way line cf Maroon Creek Road;
thence along said right-of-way S87~58'34'W, 53.97 feet; thence S$$~02'1 I"W 300.00 feet; thence leaving said right-of*way
S01°27'49"E 143.74 feet; thence N41 °04'00"E 28,45 feet; thence 136.08 feet along the arc of a curve to the fight, having a
radius of lg0.00 feet. a ~entral angle of 43° 18'56", and subt~ding a chord bearing S62042'32'W 132.86 feet; thence
Ng4°22'00E 33.04 feet: thence 21.58 feet along the ~c of a non,tangent curve to the right, having a radius of 95.00 fee~, a
central angle of 13'01'00", and subtending a chord beating S62°49'50"W 21.54 feet; thence 216.74 feet along the arc ora
reverse curve to the left, having a radios of 320.00 feet, a central angle of 38045'23", and subtending a chord bearing
849~56'09"W 212.62 feet; thence S30031'58"W 100,97 feet; thenoe $59°2g'02"E 43,00 feet; thence 160.95 feet along the arc
of a non-tangent curve to the left, having a radius of 477.00 feet; a central angle of 19* 19'5T', and subtending a ahord
820°5U59"W 160.19 feet; thence Si l*12'00"W $3.98 feet; thence 572'09' 1T'~ 381,08 feet; thence S00°04'01"W 826.35
feet; thence S00~06'08"E 319.76 feet; thence 581'59'44"W 477.78 feel; thence N22005' I g"W 350.71 feet; thence
S31 °02'40"W 261.92 t'ect; thence S73"42'51" 2,20.93 feet; thence 15.33 feet along the arc of a non-reagent curve to thc right,
having a radius of 35.00 feet, a central angle of 25'06'09', and subtending a chord bearingN42°05'OS'E 15.21 feet; thence
S54~38' 10"W 8,99 feet; thence 31.42 feet along the are ora curve to the right, having a radiu.~ of 20.O0 feet, a central angle of
90000'00", and subtending a chord Sg0~21 '50~E 211.28 feet to a point on the right-of-way of Moore Drive; thence continuing
along said right-of-way N35°21'50"W 296.72 feet; thence 97.45 feet along the arc ora curve to the lef~ having a radius of
160.00 feet, a central angle of 34¢53'49", and subtending a chord bearing N52°48'45"W 95.95 feet to a point on said north-
south centerline of Section 14; thence continuing along said nor&south centarline of Section 14 N00°07'23"W 275.91 feet;
thence Icavbg said north-south centerline N89~52'37"W 28.18 feet m a point on the right-of-way of Maroon Cr~k Road;
thence conthming along said right-of-way of Maroon Creek Road S01*02'00"W 227.87 feet; thence 113.35 feet along the arc
of curve to the right, having s radius of 3t2.39 feet, a central angle of 20°47'23', ~ald subtending a nhord bet[ring N11~25~42"£
112.73 feet; thence leaving said right-of-way of Maroon Creek Road Ng0°00'00'E 55,35 feet to the point of beginning, said
parcel contains 198,g00 acres more or less.
Exhibit B
Vicinity Map
30
Exhibit C
District Boundary Map
31
Exhibit D
Capital Contribution of Infrastructure
32
Exhibit E
General Financial Plan
33
FiveTrees Metropolitan District 8 July 2000
Capital Budget
Beginning Fund Balance $0 $3,802 $54.598 $105,654
Revenues 2000 2001 2002 2003
Proper~y Taxes @ 15 mills $0 $204.450 212.628 221,133
Specific Ownership Taxes 0 12.267 12.758 13,268
Transfer from Operations 0 50,000 0 0
Conveyance of Infrastructure 8.303.998 839.593 0 0
Develooer Loan for Operations 50,000 0 0 0
Interest Earnings 0 7.718 7,990 10 099
Total Revenues $8,353,998 $1,117,830 $287,974 $352,157
Expenditures 2000 2001 2002 2003
Operating Expenses $46,198 $171,638 $182.320 $205,449
Caoital Outlay 8,303,998 839.593 0 0
Payment on Note 0 52.000 0 0
Total Expenditures $8,350,196 $1,063,231 $182,320 $205,449
Excess Revenue $3.802 $54.598 $105.654 $146.708
Ending Fund Balance 12/31 $3.802 $54,598 $105.654 $146.708
Restricted Funds $0 $0 $0 $0
3% TABOR 1,386 5 149 5.470 6.163
Transfer to Capital Project Fund 0 0 0 0
Unrestricted Funds $2,4t6 $49,449 $100 184 $140,545
Notes:
Capital ouuays in 2001 and 2002 represent contributions by Developer
02092k@.15m
FiveTrees Metropolitan District 8 July 2000
Operational Budget
Proposed Proposed Proposed Proposed
Revenue 2000 2001 2002 2003
Balance Forward $0 $3,802 $2,897 $54,152
Developer Loan for Operations 50,000 0 0 0
Property Tax Receipts 0 204,450 212,628 221,133
Specific Ownership Tax 0 12,267 12,758 13,268
Interest Earnings 0 7,718 7,990 10,099
Fees and Charges 0 100 200 300
Total Revenues $50,000 $224,535 $236,472 $300,956
Expenses 2000 2001 2002 2003
Management $10,000 $15,000 $15,750 $16,538
In-house Engineering 1,000 500 525 551
Legal 5,000 2,000 2,100 2.205
Accounting 1.500 1,575 1.654 1.736
Audit 0 0 0 3,000
Ins Jrance 4,000 4.400 4.840 5,324
County Treasurer Fees 0 10.836 11.269 11,720
Transit Ooerat~ons-- Bus 0 3,340 5,010 6.680
Transit Operations-- Dial-A-Ride 4.500 28,900 32,550 43,400
Road Maintenance 3,000 9,500 9,975 10,474
Landscaoe Maintenance 0 1.500 1,575 1,654
Drainage Maintenance 0 500 515 541
Traffic Maintenance 0 500 525 551
Lift Operations 10,472 62,830 64,715 66,656
Lift Maintenance 3,777 22,660 23.340 24.040
Irrigation System Maintenance 0 2,000 2 100 2,205
Air Quality Monitoring 2 950 3.098 3,252 3,415
Trails Maintenance 0 2.500 2,625 2,756
Total Expenses $46,198 $171,638 $182,320 $205,449
Excess '(shortfall~ 3.802 52 ~97 54 152 95.506
Transfer to Capital Budget 0 50.000 0
Transfer to Road Reserve 0 0 0 0
Transfer to Transit Reserve 0 0 0 0
Transfer to Landscape Reserve 0 0 0 0
Transfer to Parks Reserve 0 0 0 0
3% Tabor Emergency Reserve 1.386 5.149 5.470 6 163
Balance to Next Period Operations $3,802 $2,897 $54,152 $95, 506
Notes:
A. AV is assumed at $47.000.000
B. Road reserve includes safety and drainage systems.
C. Transit reserve inc udes bus/van replacement.
D. Landscape reserve includes raw water irrigabon system.
E Parks reserve includes trails.
EXHIBIT F
OWNERSHIP LIST
34
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