City Council Study Session Summary 2020 01 28

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City Council Study Session Summary April 22, 2019 Page 2 of 3 districts are separate governmental entities with their own elected officials, taxing power and borrowing power. Metro Districts may raise revenue by imposing property taxes, special assessments, and by imposing fee and penalties. Metro districts can issue general obligation bonds, revenue bonds, special assessment bond and tax exempt municipal bonds. The most common way is to issue common obligation bond but it must be approved by voters. Council member Brown asked about different types of bonds: Ms. Crawford said the difference is what is being pledged — general obligation bonds typically vs unlimited. Any debt is subject to TABOR. Council member Fahey asked what happens in the unlikely case of collecting more than needed to put in the improvement. In that scenario, the bonds can be paid down or used for other capital improvements outlined in the ballot language. Attorney Kelly said the service plan is the most important decision to be made. It must include a description of proposed services, financial plan, a preliminary engineering survey, a map of the proposed district, estimate of population and valuation for assessment, general description of the facilities and standards of such construction. It must also include a general description of major expenses related to the organization and any proposed IGAs. The district proponents must file a service plan with the City. The City Council holds a public hearing to approve, approve with conditions, or disapprove the proposed service plan. If approved, district proponents file in district court for authority to organize and hold election. Council member Lipton said the initial elections is by a small group, closely held election. How does TABOR enter into this? Does TABOR limit ability to raise revenue? Limits must be voted on by electors. Council member Dickinson said the initial decisions are very important. Spread out over more people as time goes on. Attorney Kelly agreed and said the initial decisions chart a course that cannot be undone. Mayor Stolzmann asked about multiple district structures. Council member Maloney said people purchasing properties sometimes don't seem to know they are in a metro district. How can this be communicated and allow people to do more due diligence? Attorney Kelly said that has been a struggle to communicate. Notices can be posted in sales office, showing a calculation of how much the homeowner will pay.