1. Waterfront Metropolitan District Service Plan Amendment
July 18, 2017

2. Applicants Waterfront Metro District Board
Dan Kamrath
David Leary
Doug Vandertuin
Leslie Snow
Loren Johnson
General Counsel to the District
George Rowley - White Bear Ankele Tanaka & Waldron
My name is Leslie Snow and I am on the Metro Board and we want to thank you for the time on the agenda. Other members of the board are: Dan, David, Doug and Loren. We also have with us George Rowley our attorney from White Bear Ankele Tanaka and Waldron, Diane Wheeler from Simmons & Wheeler and Zach Bishop, Managing Director, Public Finance, D.A. Davidson & Co.

3. Current Situation Metro District Established 2003
Turned Over to Homeowners
2007
Number of Lots
200
Original Debt
$5,585,000
Existing Debt
$4,830,000
Interest Rate
4.5%
Payoff Date
December 2035
Mill Levy Cap 46
Represents ~ 1/3 of total mills
Drew on the reserve fund
Years 2014 and 2015 due to assessed value decline
The district was established in 2003 and the developer left in 2007-resident controlled neighborhood
Debt is 4.8 million with payoff date of 2035 (18 years left)
Total mill is 120 with 46 coming from metro district
Had to draw on our reserve to make payments due to assessed value decline in 2014/2015

4. District Map
North east side of Boyd Lake and west of Boyd Lake Avenue

5. Intention Intention Accomplish By Reduce tax burden for homeowners
Refinancing existing debt
Removing mill levy cap in order to negotiate best interest rate
Setting mill levy at a rate sufficient to pay the refinanced debt
Discuss assessed value trigger at 50% if needed.

6. Precedence
Cities and counties who have approved metro district amendments to remove mill levy cap for refinancing
Arvada
Aurora
Broomfield
Centennial
Colorado Springs
Erie
Westminster
Jefferson County

7. Debt Refinancing Option
Projected Debt Levy
27 mills
Estimated Interest Rate*
4.00%
Maturity
2047
Closing Date
September 2017
Type of Loan
Fixed Rate A-Rated Bond
*Interest rate based on removal of mill levy cap.

8. Savings to Residents 2017 Assessed Values in Neighborhood
2017 Metro 46 Mills
2017 Metro *33 Mills
Tax Savings
$ 315,600
$ 1,045 $
$ 295
$ 411,600
$ 1,363 $
$ 385
$ 519,000
$ 1,719
$ 1,233
$ 486
$ 634,560
$ 2,102
$ 1,508
$ 594
$ 792,120
$ 2,624
$ 1,882
$ 742
$ 926,520
$ 3,069
$ 2,201
$ 868
$1,023,120
$ 3,389
$ 2,431
$ 958
$1,335,960
$ 4,425
$ 3,174
$ 1,251
Metro tax savings of 28%
Overall tax savings 11%
Savings is not a small dollar amount
Overall tax savings of 11%
*Savings based on 27 mills applied to refinanced debt repayment plus 6 mills to general fund

9. Effects of Mill Levy Changes
Year
Assessed Value
Metro Tax
Mill Levy
House Value Change
Metro Tax $ Change
2017
$ 792,120
$ 1,882 33
$ 673,302
$ 1,891 39
-15% 0%
$ 592,506
$ 1,898
44.5
-25%
After refinance, dollar amount paid by homeowners remains the same while the mill levy adjusts for potential valuation changes.
Removing the mill levy cap may sound troublesome but what you need to consider is the actual dollar amount that will be paid by each homeowner. As you can see in this example when the assessed value of a house goes down, the mill levy needed to pay the debt increases but the dollar amount paid by the homeowner remains the same.

10. Homeowner Protection
Mill levy will be set at a rate sufficient to pay the fixed rate refinanced debt
Any new debt will be subject to a total debt service mill levy cap
The mill levy will not exceed 40 mills when combined with the mill levy required to pay the refinancing debt
General fund will be capped at 6 mills
Fund pays the operation and maintenance expenses

11. Communication to Homeowners
Notice of the District’s intent to amend its service agreement to remove mill cap for debt repayment was provided as follows:
On agenda at three HOA Board meetings
Agenda is sent to all homeowners before the meeting and notes are published after the meeting
Intent to refinance letter sent to homeowners in January 2017
Letter also requested attendance at HOA’s annual meeting at the end of January for presentation and discussion
Outcome of discussion at annual HOA meeting was sent to homeowners as part of meeting notes
Article discussing intent in Spring Newsletter sent to homeowners in March 2017
Posted notice of special meeting with city staff in April
Posted and mailed notice to community regarding City Council public hearing
Sent to community regarding City Council public hearing
We have been transparent with the community and kept them abreast of our intention, process and progress through s, notes and newsletters. The district was on the agenda at our HOA annual meeting in January were we presented our plan.

12. Support The amendment is supported by: District Board of Directors
HOA Board of Directors
Community
After amendment discussion at HOA annual meeting, residents were asked to vote on the following:
Do you approve the removal of the mill levy cap for paying off refinanced debt only from the Waterfront Metropolitan District’s service agreement?
91% of homeowners voted yes
18% of the community present
We have support of our HOA Board and the community. At our annual meeting we asked those in attendance to vote on the removal of the mill levy cap for paying off debt and 91% voted in favor.

13. Conclusion
The Metro District Board is requesting the current service agreement be amended by removing the mill levy cap for the refinanced debt allowing the district to negotiate the best interest rate
Refinancing will reduce the tax burden of the District’s homeowners
Thank you for your consideration
Discussion