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Home My WebLink AboutResolution 45, 20191 CITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. 45 Series of 2019 TITLE: A RESOLUTION APPROVING A SERVICE PLAN AND INTERGOVERNMENTAL AGREEMENT FOR THE HANCE RANCH METROPOLITAN DISTRICT WHEREAS, the Hance Ranch Metropolitan District (“District”) is being organized pursuant to the Colorado Special District Act §§ 32-1-101, et seq., C.R.S.; and WHEREAS, the District has submitted the District’s Service Plan for City Council approval (the “Service Plan”), a copy of which is attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the Service Plan provides for the District’s provision and financing of public improvements and services for the development of a residential project within the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat Ridge, Colorado, as follows: 1) The above and foregoing recitals are incorporated herein by reference and are adopted as findings and determinations of the City. 2) The City further finds and determines that all applicable requirements of §§ 32-1-202(2), 32-1-203(2) and 32-1-204.5, C.R.S. relating to the submittal and requirements of the Service Plan and the consideration thereof by the City, have been met. 3) Based upon the Service Plan, the City hereby determines as follows: a) The Service Plan meets the requirements of § 32-1-202(2), C.R.S. regarding the contents thereof. b) The Service Plan meets the requirements of § 32-1-203(2) as follows: i) The Service Plan demonstrates a sufficient existing and projected need for service in the area to be serviced by the District. ii) Without the District, the existing service in the area is inadequate to serve the services proposed to be provided within the District’s boundaries. iii) The District is capable of providing economical and sufficient service to the area within its proposed boundaries. iv) The area included within the District’s boundaries and financing mechanisms contemplated in the Service Plan have, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. 1232.968232 SERVICE PLAN FOR HANCE RANCH METROPOLITAN DISTRICT Prepared By: WHITE BEAR ANKELE TANAKA & WALDRON2154 E. Commons Avenue, Suite 2000 Centennial, CO 80122 August 26, 2019 1232.968232 i TABLE OF CONTENTS I.INTRODUCTION..............................................................................................................1 A.Purpose and Intent....................................................................................................1 B.Need for the District.................................................................................................1 C.Objective of the City Regarding Service Plan .........................................................1 II.DEFINITIONS ...................................................................................................................2 III.BOUNDARIES PROPOSED LAND USE/POPULATION PROJECTIONS/ASSESSED VALUATION ................................................................................................4 IV. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES 4 A.Powers of the District and Service Plan Amendment ..............................................4 1.Operations and Maintenance Limitation ......................................................4 2.Fire Protection Limitation ............................................................................4 3.Construction Standards Limitation ..............................................................5 4.Inclusion Limitation .....................................................................................5 5.Overlap Limitation .......................................................................................5 6.Total Debt Issuance Limitation ....................................................................5 7.Privately Placed Debt Limitation .................................................................5 8.Fee Limitation ..............................................................................................5 9.Consolidation Limitation .............................................................................6 10.Bankruptcy Limitation .................................................................................6 11.Service Plan Amendment Requirement .......................................................6 B.Preliminary Engineering Survey ..............................................................................6 C.Other Powers ............................................................................................................7 1.Service Plan Amendments ...........................................................................7 2.Phasing, Deferral..........................................................................................7 3. Additional Services ......................................................................................7 1232.968232 ii D. Facilities to be Constructed and/or Acquired...........................................................7 V. FINANCIAL PLAN ...........................................................................................................8 A. General .....................................................................................................................8 B. Maximum Voted Interest Rate and Maximum Underwriting Discount ..................8 C. Maximum Debt Mill Levy .......................................................................................9 D. Maximum Debt Mill Levy Imposition Term ...........................................................9 E. Debt Repayment Sources .......................................................................................10 F. Security for Debt ....................................................................................................10 G. TABOR Compliance ..............................................................................................10 H. District’s Operating Costs ......................................................................................10 VI. ANNUAL REPORT .........................................................................................................10 A. General ...................................................................................................................10 B. Reporting of Significant Events .............................................................................11 VII. DISSOLUTION ................................................................................................................11 VIII. DISCLOSURE TO PURCHASERS ...............................................................................12 IX. INTERGOVERNMENTAL AGREEMENT.................................................................12 X. CONCLUSION ................................................................................................................12 1232.968232 iii LIST OF EXHIBITS EXHIBIT A Legal Description of District EXHIBIT B District Boundaries Map EXHIBIT C City of Wheat Ridge Vicinity Map EXHIBIT D Inclusion Area Legal Description and Boundary Map EXHIBIT E Intergovernmental Agreement between the District and the City of Wheat Ridge EXHIBIT F Capital Plan EXHIBIT G Financial Plan 1232.968232 1 I. INTRODUCTION A. Purpose and Intent. The purpose of the District will be to provide all or a portion of Public Improvements as further defined and described in this Service Plan (within and without the District boundaries as will be determined by the Board to be in the best interest of the District and in accordance with the Service Plan), for the benefit of the residents and taxpayers located within the Project. The primary purpose of the District will be to finance the construction of these Public Improvements and have authorization as is necessary to own, operate and maintain Public Improvements not otherwise transferred to another public entity. The District shall also be authorized, but not required, to provide covenant enforcement and design review services in accordance with the Special District Act. Upon completion to City standards, the District will convey to the City such Public Improvements as are constructed by the District in accordance with the Approved Development Plan. The District is an independent unit of local government, separate and distinct from the City, and, except as may otherwise be provided for by State or local law or this Service Plan, its activities are subject to review by the City only insofar as they may deviate in a material matter from the requirements of the Service Plan. B. Need for the District. The Project is not presently served with the facilities and/or services proposed to be provided by the District, nor does the City nor any other special district have any plans to provide such services within a reasonable time and on a comparable basis. There are currently no other governmental entities, including the City, located in the immediate vicinity of the District that consider it desirable, feasible or practical to undertake the planning, design, acquisition, construction, installation, relocation, redevelopment and financing of the Public Improvements needed for the Project. The District is therefore necessary in order for the Public Improvements required for the Project to be provided in the most economic manner possible. Approval of this Service Plan shall not indicate, implicitly or expressly, that any land use applications now on file with the City or any land use applications filed in the future will be approved by the City. C. Objective of the City Regarding Service Plan. The City’s objective in approving the Service Plan for the District is to authorize the District to provide for the planning, design, acquisition, demolition, construction, installation, relocation and redevelopment of the Public Improvements from the proceeds of Debt to be issued by the District and to further authorize the District to own, operate and maintain certain of the Public Improvements. All Debt is expected to be repaid by taxes imposed and collected for no longer than the Maximum Debt Mill Levy Imposition Term and at a mill levy no higher than the Maximum Debt Mill Levy, and/or repaid by Fees as limited by Section IV.A.8. Debt which is issued within these parameters will insulate property owners from excessive tax and Fee burdens to support the servicing of the Debt and will result in a timely and reasonable discharge of the Debt. It is the intent of this Service Plan to assure to the extent possible that no property bear an economic burden that is greater than that associated with the Maximum Debt Mill Levy in amount and that no property bear an economic burden for Debt that is greater than that associated with the Maximum Debt Mill Levy Imposition Term in duration even under bankruptcy or other unusual 1232.968232 2 situations. Generally, the cost of Public Improvements that cannot be funded within these parameters are not costs to be paid by the District. This Service Plan is intended to establish financial constraints and requirements associated with the District that are not to be violated under any circumstances. The primary purpose is to provide for the Public Improvements and services associated with the Project and regional needs. II. DEFINITIONS In this Service Plan, the following terms shall have the meanings indicated below, unless the context clearly requires otherwise: Approved Development Plan: means a development plan, subdivision improvement plan, or other process established by the City (including but not limited to approval of a final plat, minor development plat or site plan) for identifying, among other things, Public Improvements necessary for facilitating development for property within the Service Area, as approved by the City pursuant to the City Code, and as may be amended pursuant to the City Code from time to time. Board: means the board of directors of the District. Capital Plan: means the capital plan attached hereto as Exhibit F and referenced in Section IV.B which includes (i) a description of the type of capital facilities to be developed by the District; (ii) an estimate of the cost of the proposed facilities; and (iii) a capital expenditure plan correlating expenditures with development. City: means the City of Wheat Ridge, Colorado. City Council: means the City Council of the City of Wheat Ridge, Colorado. C.R.S.: means Colorado Revised Statutes. Debt: means bonds, notes or other multiple fiscal year financial obligations for the payment of which the District has pledged to impose an ad valorem property tax mill levy. District: means Hance Ranch Metropolitan District. District Boundaries: means the legal boundaries of the District as described in Exhibit A attached hereto. District Boundary Map: means the map attached hereto as Exhibit B, depicting the boundaries of the District. End User: means any owner, or tenant of any owner, of any platted Taxable Property within the District for which a certificate of occupancy has been issued. By way of illustration, a resident homeowner, renter, commercial property owner, or commercial 1232.968232 3 tenant is an End User. The business entity that constructs homes or commercial structures is not an End User. External Financial Advisor: means a consultant that: (i) advises Colorado governmental entities on matters relating to the issuance of securities by Colorado governmental entities, including matters such as the pricing, sales and marketing of such securities and the procuring of bond ratings, credit enhancement and insurance in respect of such securities; (ii) shall be an underwriter, investment banker, or individual listed as a public finance advisor in the Bond Buyer’s Municipal Market Place; and (iii) is not an officer or employee of the District and has not been otherwise engaged to provide services in connection with the transaction related to the applicable Debt. Fees: means any fee imposed by the District for services, programs or facilities provided by the District, as described in Section IV.A.8 below. Financial Plan: means the Financial Plan described in Section V which generally describes (i) how the Public Improvements are anticipated to be financed; (ii) how the Debt is expected to be incurred; and (iii) the estimated operating revenue derived from property taxes for the first budget year. Such Financial Plan may be adjusted by the Board in the future as is necessary to accommodate phasing or other financial or development considerations so long as any such adjustment does not exceed either the Maximum Debt Mill Levy or the Maximum Debt Mill Levy Imposition Term. The Financial Plan is based upon current estimates and will change based on actual development of the Project. Inclusion Area Boundaries: means the legal description and map attached hereto as Exhibit D which describes the property proposed for inclusion within the District. Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to impose for payment of Debt as further set forth in Section V.C below, including adjustments to the Maximum Debt Mill Levy as are permitted under Section V.C. Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of a debt service mill levy on a particular property as set forth in Section V.D below. Project: means the development or property commonly referred to as Hance Ranch. Public Improvements: means a part or all of the improvements authorized to be planned, designed, acquired, constructed, installed, relocated, redeveloped and financed as generally described in the Special District Act, except as specifically limited in Section IV below, to serve the future taxpayers and inhabitants of the Service Area as determined by the Board. Service Area: means the property within the District Boundaries and the Inclusion Area Boundaries. Service Plan: means this Service Plan for the District approved by City Council. Service Plan Amendment: means an amendment to the Service Plan approved by City Council in accordance with the City Code and applicable state law. 1232.968232 4 Special District Act: means Section 32-1-101, et seq., C.R.S., as amended from time to time. State: means the State of Colorado. TABOR: the Colorado Taxpayer’s Bill of Rights. Taxable Property: means real or personal property within the Service Area subject to ad valorem taxes imposed by the District. III. BOUNDARIES PROPOSED LAND USE/POPULATION PROJECTIONS/ ASSESSED VALUATION The area of the District Boundaries includes approximately 3.91 acres and the area of the Inclusion Area Boundaries is approximately 2.66 acres. A legal description of the District Boundaries is attached hereto as Exhibit A. A District Boundary Map is attached hereto as Exhibit B. A vicinity map is attached hereto as Exhibit C. An Inclusion Area Legal Description and Boundary Map is attached hereto as Exhibit D. It is anticipated that a District’s boundaries may change from time to time as it undergoes inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501, et seq., C.R.S., subject to the limitations set forth in Section IV below. Approval of this Service Plan by the City does not imply approval of the development of a specific area within the Service Area, nor does it imply approval of the number of residential units identified in this Service Plan or any of the exhibits attached thereto, unless the same is contained within an Approved Development Plan. IV. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES A. Powers of the District and Service Plan Amendment. The District shall have the power and authority to provide the Public Improvements and related ownership, operation and maintenance services within and without the boundaries of the District as such power and authority is described in the Special District Act, and other applicable statutes, common law and the State constitution, subject to the limitations set forth herein. 1. Operations and Maintenance Limitation. The purpose of the District is to plan for, design, acquire, construct, install, relocate, redevelop and finance the Public Improvements. The District shall dedicate the Public Improvements to the City or other appropriate jurisdiction in a manner contemplated under the Approved Development Plan and other rules and regulations of the City and applicable provisions of the City Code. The District shall be authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise dedicated to the City or other public entity. 2. Fire Protection Limitation. The District shall not be authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain fire protection facilities or services, unless such facilities and services are provided pursuant to an 1232.968232 5 intergovernmental agreement with the City. The authority to plan for, design, acquire, construct, install, relocate, redevelop or finance fire hydrants and related improvements installed as part of the water system shall not be limited by this provision. Fire protection and emergency response services will be provided by the Arvada Fire Protection District. 3. Construction Standards Limitation. The District will ensure that Public Improvements constructed by the District are designed and constructed in accordance with the standards and specifications of the City and of other governmental entities having proper jurisdiction, including the Colorado Department of Health, and other applicable local, state or federal agencies. 4. Inclusion Limitation. The District shall not include within its boundaries any property outside the Service Area without the prior written consent of the City. 5. Overlap Limitation. The District shall not consent to the organization of any other district organized under the Special District Act within the Service Area which will overlap the boundaries of the District unless the aggregate mill levy for payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill Levy of the District. 6. Total Debt Issuance Limitation. The District shall not issue Debt in excess of Six Million Dollars ($6,000,000). Debt that is issued for the purpose of refunding outstanding Debt shall not be counted against such total debt issuance limitation, provided, however, that if the aggregate principal amount of the refunding Debt exceeds the outstanding aggregate principal amount of the refunded Debt, the increase in principal amount shall be counted against such debt limitation. 7. Privately Placed Debt Limitation. Prior to the issuance of any privately placed Debt, the District shall obtain the certification of an External Financial Advisor substantially as follows: We are [I am] an External Financial Advisor within the meaning of the District’s Service Plan. We [I] certify that (1) the net effective interest rate (calculated as defined in Section 32-1-103(12), C.R.S.) to be borne by [insert the designation of Debt] does not exceed a reasonable current [tax-exempt] [taxable] interest rate, using criteria deemed appropriate by us [me] and based upon our [my] analysis of comparable high yield securities; and (2) the structure of [insert designation of the Debt], including maturities and early redemption provisions, is reasonable considering the financial circumstances of the District. 8. Fee Limitation. The District may impose and collect Fees as a source of revenue for repayment of Debt, capital costs, and/or for operations and maintenance. No Fee related to repayment of Debt shall be authorized to be imposed upon or collected from Taxable Property owned or occupied by an End User. Notwithstanding any of the foregoing, the restrictions in this definition shall not apply to any Fee imposed upon or collected from Taxable 1232.968232 6 Property for the purpose of funding operation and maintenance costs of the District, including the establishment of a reserve fund for future repairs or replacement costs. 9. Consolidation Limitation. The District shall not file a request with any Court to consolidate with another district organized under the Special District Act, without the prior written consent of the City. 10. Bankruptcy Limitation. All of the limitations contained in this Service Plan, including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt Mill Levy Imposition Term and the Fees have been established under the authority of the City to approve a Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such limitations: (a) shall not be subject to set-aside for any reason or by any court of competent jurisdiction, absent a Service Plan Amendment; and (b) are, together with all other requirements of State law, included in the “political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11 U.S.C.) Section 903, and are also included in the “regulatory or electoral approval necessary under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6). Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless and until such material modification has been approved by the City as part of a Service Plan Amendment. 11. Service Plan Amendment Requirement. This Service Plan has been designed with sufficient flexibility to enable the District to provide Public Improvements and services and facilities under evolving circumstances without the need for numerous amendments. The District may seek formal approval from the City of modifications to this Service Plan which are not material, but for which the District may desire a written amendment and approval by the City. Such approval may be evidenced by any instrument executed by the City Manager, City Attorney, or other designated representative of the City as to the matters set forth therein and shall be conclusive and final. B. Preliminary Engineering Survey. The District shall have authority to provide for the planning, design, acquisition, construction, installation, relocation, redevelopment, maintenance and financing of the Public Improvements within and without the boundaries of the District. An estimate of the costs of the Public Improvements which may be planned for, designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed was prepared based upon a preliminary engineering survey and estimates derived from the preliminary zoning on the property in the Service Area and is approximately ($1,865,825). The Capital Plan attached hereto as Exhibit F includes a description of the types of capital facilities to be developed by the District, an estimate of the cost of the proposed facilities, and a capital expenditure plan correlating expenditures with 1232.968232 7 development. The actual Public Improvements to be constructed will be determined by the Approved Development Plan, notwithstanding the Capital Plan, and are necessary and for the benefit of all homeowners, residents and property owners within the District in order to provide for a coordinated system of Public Improvements for the development of the Project. All of the Public Improvements constructed by the District will be designed in such a way as to assure that the Public Improvements will be compatible with those of the City and shall be in accordance with the requirements of the City. All construction cost estimates are based on the assumption that construction conforms to applicable local, State or Federal requirements. The actual Public Improvements to be constructed will be determined by the City and the District, and variations from the Capital Plan or Financial Plan shall not constitute a material modification of this Service Plan. All Public Improvements contemplated for the Project benefit the residents, property owners, and taxpayers of the District, and such benefit accrues to such residents, property owners, and taxpayers of the District regardless of the specific or general location of the various Public Improvements. The Public Improvements generally depicted and described in the Capital Plan or Financial Plan have been presented for illustration only, and the exact design, subphasing of construction and location of the Public Improvements will be determined at the time of City approvals and public works approval and such decisions shall not be considered to be a material modification of the Service Plan. C. Other Powers. The District shall also have the following authority: 1. Service Plan Amendments. To amend the Service Plan as needed, subject to the appropriate statutory procedures and City Code. 2. Phasing, Deferral. Without amending this Service Plan, to defer, forego, reschedule, or restructure the financing and/or construction of Public Improvements and facilities, to better accommodate the pace of growth, resource availability, and potential inclusions of property within the District. 3. Additional Services. Except as specifically provided herein, to provide such additional services and exercise such powers as are expressly or impliedly granted by Colorado law, as may be amended from time to time. D. Facilities to be Constructed and/or Acquired. The District proposes to provide and/or acquire Public Improvements necessary and for the benefit of the Project, and the residents, property owners and taxpayers of the District as are set forth in the Approved Development Plan. Notwithstanding anything in this Service Plan to the contrary, the District shall have the authority to enter into any intergovernmental agreements deemed necessary to effectuate the plans of the District without further approval from the City. In addition, the District shall have the 1232.968232 8 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. V. FINANCIAL PLAN A. General. The District shall be authorized to provide for the planning, design, acquisition, construction, installation, relocation and/or redevelopment of the Public Improvements by and through the proceeds of Debt to be issued by the District. The Financial Plan for the District shall be to issue such Debt as the District can reasonably pay within the Maximum Debt Mill Levy Imposition Term from revenues derived from the Maximum Debt Mill Levy, Fees and other legally available revenues. A Financial Plan is attached hereto as Exhibit G, which provides preliminary projections demonstrating that the District can reasonably discharge the proposed Debt, consistent with the requirements of the Special District Act. The total Debt that the District shall be permitted to issue shall not exceed Six Million Dollars ($6,000,000) and shall be permitted to be issued in amounts and on a schedule in such year or years as the District, in its discretion, determines is necessary to serve development as it occurs and can be issued within the parameters established herein. All bonds and other Debt issued by the District may be payable from any and all legally available revenues of the District, including, but not limited to, ad valorem taxes and Fees. The District will also rely upon various other revenue sources authorized by law. These will include the power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(1), C.R.S., as amended from time to time. The parameters in the Financial Plan are based upon current estimates and will change based on actual development of the Project. The Financial Plan is one projection of the issuance of Debt by the District based on certain development assumptions. It is expected that actual development (including, but not limited to product types, market values, and absorption rates) will vary from that projected and illustrated in the Financial Plan, which variations and deviations shall not constitute a material modification of this Service Plan. Notwithstanding anything in this Service Plan to the contrary, the projections set forth in this Service Plan and the Financial Plan are projections based upon current market conditions. The actual amounts, interest rates, and terms of any Debt will likely change from that reflected in the Financial Plan, and each issue of Debt will be based upon the actual conditions existing at the time of issuance, subject to the limitations of the Service Plan. B. Maximum Voted Interest Rate and Maximum Underwriting Discount. The interest rate on any Debt is expected to be the market rate at the time the Debt is issued. In the event of a default, the proposed maximum interest rate on any Debt is not expected to exceed eighteen percent (18%). The proposed maximum underwriting discount will be five percent (5%). Debt, when issued, will comply with all relevant requirements of this Service Plan, State law and Federal law as then applicable to the issuance of public securities. 1232.968232 9 C. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is permitted to impose upon the taxable property within the District for payment of Debt, and shall be determined as follows: 1. For the portion of any aggregate Debt which exceeds fifty percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such portion of Debt shall be sixty (60) mills less the number of mills necessary to pay unlimited mill levy Debt described in Section V.C.2 below; provided that if, on or after January 1, 2018, changes are made in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement; the mill levy limitation applicable to such Debt 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 for changes occurring after January 1, 2018, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed valuation. 2. For the portion of any aggregate Debt which is equal to or less than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is necessary to pay the Debt service on such Debt, without limitation of rate. 3. For purposes of the foregoing, once Debt has been determined to be within Section V.C.2 above, such that the District is entitled to pledge to its payment an unlimited ad valorem mill levy, such District may provide that such Debt shall remain secured by such unlimited mill levy, notwithstanding any subsequent change in such District’s Debt to assessed ratio. All Debt issued by the District must be issued in compliance with the requirements of Section 32-1- 1101, C.R.S. and all other requirements of State law. To the extent that the District is composed of or subsequently organized into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used herein shall be deemed to refer to the District and to each such subdistrict separately, so that each of the subdistricts shall be treated as a separate, independent district for purposes of the application of the definitions and limitations herein. D. Maximum Debt Mill Levy Imposition Term. The District shall not impose a levy for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt) on any single property developed for residential uses which exceeds forty (40) years after the year of the initial imposition of such Debt mill levy unless a majority of the Board of the District imposing the mill levy are residents of the District and have voted in favor of a refunding of a part or all of the Debt and such refunding will result in a net present value savings as set forth in Section 11-56-101, C.R.S.; et seq., as may be amended from time to time. 1232.968232 10 E. Debt Repayment Sources. All bonds and other Debt issued by the District may be payable from any and all legally available revenues of the District, including, but not limited to, general ad valorem taxes and Fees. The Distric will also rely upon various other revenue sources authorized by law. These will include the power to assess Fees, rates, tolls, penalties, or charges as provided in Section 32- 1-1001(1), C.R.S., as amended from time to time. In no event shall the debt service mill levy in the District exceed the Maximum Debt Mill Levy or the Maximum Debt Mill Levy Imposition Term, except pursuant to an intergovernmental agreement between a District and the City. F. Security for Debt. The District shall not pledge any revenue or property of the City as security for the indebtedness. Approval of this Service Plan shall not be construed as a guarantee by the City of payment of any of the District’s obligations; nor shall anything in the Service Plan be construed so as to create any responsibility or liability on the part of the City in the event of default by the District in the payment of any such obligation. G. TABOR Compliance. The District will comply with the provisions of TABOR. In the discretion of the Board, the District may set up other qualifying entities to manage, fund, construct and operate facilities, services, and programs. To the extent allowed by law, any entity created by the District will remain under the control of the District’s Board. H. District’s Operating Costs. The estimated cost of planning services, engineering services, legal services and administrative services, together with the estimated costs of the District’s initial operations, are anticipated to be One Hundred Thousand Dollars ($100,000), which will be eligible for reimbursement from Debt proceeds. In addition to the capital costs of the Public Improvements, the District will require operating funds for administration and to plan and cause the Public Improvements to be constructed owned, operated and maintained by the District. The 2019 operating budget is estimated to be Fifty Thousand Dollars ($50,000) which is anticipated to be derived from property taxes and other revenues. The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the District’s ability to increase its mill levy as necessary for the provision of administrative, operation and maintenance services. VI. ANNUAL REPORT A. General. The District shall be responsible for submitting an annual report to the City Clerk at the City’s administrative offices no later than September 1st of each year following the year in 1232.968232 11 which the Service Plan is approved by the City Council. The annual report shall reflect activity and financial events of the District through the preceding December 31st (the “Report Year”). B. Reporting of Significant Events. 1. The annual report shall include information as to any of the following: 2. A narrative summary of the progress of the District in implementing its service plan for the Report Year. 3. Except when an exemption from audit has been granted for the report year under the Local Government Audit Law, the audited financial statements of the District for the Report Year including a statement of financial condition (i.e. balance sheet) as of December 31 of the report year and the statement of operations (i.e. revenues and expenditures) for the Report Year. 4. Unless disclosed within a separate schedule to the financial statements, a summary of the capital expenditures incurred by the District in development of public facilities in a Report Year, as well as any capital improvements or projects proposed to be undertaken in the five (5) years following the report year. 5. Unless disclosed within a separate schedule to the financial statements, a summary of the financial obligations of the District at the end of the report year, including the amount of outstanding indebtedness, the amount and terms of any new District indebtedness or long-term obligations issued in the Report Year, the amount of payment or retirement of existing indebtedness of the District in the Report Year, the total assessed valuation of all taxable properties within the District as of January 1 of the Report Year, and the current mill levy of the District pledged to debt retirement in the Report Year. 6. The District’s budget for the calendar year in which the annual report is submitted. 7. A summary of residential and commercial development which has occurred within the District for the report year. 8. A summary of all fees, charges and assessments imposed by the District as of January 1 of the Report Year. 9. The name, business address and telephone number of each member of the Board and its chief administrative officer and general counsel, together with the date, place and time of the regular meetings of the Board. VII. DISSOLUTION Upon an independent determination of the City Council that the purposes for which the District was created have been accomplished, the District agree to file a petition in the appropriate District Court for dissolution, pursuant to the applicable State statutes. In no event shall a 1232.968232 12 dissolution occur until the District has provided for the payment or discharge of all of its outstanding indebtedness and other financial obligations as required pursuant to State statutes. VIII. DISCLOSURE TO PURCHASERS The District will use reasonable efforts to assure that all developers of the property located within the District provides written notice to all purchasers of property in the District regarding the Maximum Debt Mill Levy, as well as a general description of the District’s authority to impose and collect rates, Fees, tolls and charges. The form of notice shall be filed with the City prior to the initial issuance of the Debt of the District and shall be recorded in the Service Area. IX. INTERGOVERNMENTAL AGREEMENT The form of the intergovernmental agreement, relating to the limitations imposed on the District’s activities, is attached hereto as Exhibit E. The District shall approve the intergovernmental agreement in the form attached as Exhibit E at its first Board meeting after approval of the Service Plan by the City. The City Council shall approve the intergovernmental agreement in the form attached as Exhibit E at the public hearing approving the Service Plan. X. CONCLUSION It is submitted that this Service Plan for the District, as required by Section 32-1-203(2), C.R.S., establishes that: 1. There is sufficient existing and projected need for organized service in the area to be serviced by the District; 2. The existing service in the area to be served by the District is inadequate for present and projected needs; 3. The District is capable of providing economical and sufficient service to the area within its proposed boundaries; and 4. Adequate service is not, and will not be, available to the area through the City or county or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis. 5. The facility and service standards of the District are compatible with the facility and service standards of the City within which the special district is to be located and each municipality which is an interested party under Section 32-1-204(1), C.R.S. 6. The proposal is in substantial compliance with a master plan adopted pursuant to Section 30-28-108, Colorado Revised Statutes; 7. The proposal is in compliance with any duly adopted City, regional or state long-range water quality management plan for the area. 8. The creation of the District is in the best interests of the area proposed to be served. 1232.968232 A-1 EXHIBIT A Legal Description of the District 1232.968232 B-1 EXHIBIT B District Boundaries Map BASIS OF BEARINGS 1232.968232 C-1 EXHIBIT C City of Wheat Ridge Vicinity Map 1232.968232 D-1 EXHIBIT D Inclusion Area Legal Description and Boundary Map 1232.968232 E-1 EXHIBIT E Intergovernmental Agreement between District and City of Wheat Ridge 1232.968232 E-2 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF WHEAT RIDGE, COLORADO AND HANCE RANCH METROPOLITAN DISTRICT THIS INTERGOVERNMENTAL AGREEMENT (the “Agreement”) is made and entered into as of this ___ day of ____________, 2019, by, between and among the CITY OF WHEAT RIDGE, Colorado (“City”), and HANCE RANCH METROPOLITAN DISTRICT, a quasi- municipal corporation and political subdivision of the State of Colorado (the “District”). The City and the District are each referred to herein as a “Party” and together referred to herein as the “Parties”. RECITALS WHEREAS, the District was organized to provide those services and to exercise powers as are more specifically set forth in the Service Plan for Hance Ranch Metropolitan District, approved by the City on , 2019 (“Service Plan”); and WHEREAS, the Service Plan requires that the District approves this Agreement after approval of the Service Plan by the City; and WHEREAS, the City and the District have determined it to be in the best interests of their respective taxpayers, residents and property owners to enter into this Agreement; and WHEREAS, all defined terms set forth herein shall have the same meaning as set forth in the Service Plan. NOW, THEREFORE, in consideration of the covenants and mutual agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: COVENANTS AND AGREEMENTS 1.Operations and Maintenance. The District shall dedicate the Public Improvementsto the City or other appropriate jurisdiction in a manner contemplated under the Approved Development Plan and other rules and regulations of the City and applicable provisions of the City Code. The District shall be authorized, but not obligated, to own, operate and maintain Public Improvements not otherwise dedicated to the City or other public entity. 2.Construction Standards. The District will ensure that Public Improvementsconstructed by the District are designed and constructed in accordance with the standards and specifications of the City and of other governmental entities having proper jurisdiction, including the Colorado Department of Health, and other applicable local, state or federal agencies. 3. Inclusion of Property. The District shall not include within its boundaries anyproperty outside the Service Area without the prior written consent of the City. 26th August August 26 1232.968232 E-3 4.Total Debt Issuance. The District shall not issue Debt in excess of Six Million Dollars ($6,000,000). Debt that is issued for the purpose of refunding outstanding District Debt shall not be counted against such debt limitation, provided, however, that if the aggregate principal amount of the refunding Debt exceeds the outstanding aggregate principal amount of the refunded Debt, the increase in principal amount shall be counted against such debt limitation. 5. Bankruptcy. All of the limitations contained in the Service Plan, including, but not limited to, those pertaining to the Maximum Debt Mill Levy, Maximum Debt Mill Levy Imposition Term and the Fees have been established under the authority of the City to approve the Service Plan with conditions pursuant to Section 32-1-204.5, C.R.S. It is expressly intended that such limitations: (a)shall not be subject to set-aside for any reason or by any court of competent jurisdiction, absent a Service Plan Amendment; and (b)are, together with all other requirements of State law, included in the“political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11 U.S.C.) Section 903, and are also included in the “regulatory or electoral approval necessary under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6). Any Debt, issued with a pledge or which results in a pledge, that exceeds the Maximum Debt Mill Levy and the Maximum Debt Mill Levy Imposition Term, shall be deemed a material modification of this Service Plan pursuant to Section 32-1-207, C.R.S. and shall not be an authorized issuance of Debt unless and until such material modification has been approved by the City as part of a Service Plan Amendment. 7.Dissolution. Upon an independent determination of the City Council that thepurposes for which the District was created have been accomplished, the District agrees to file a petition in the appropriate District Court for dissolution, pursuant to the applicable State statutes. In no event shall a dissolution occur until the District has provided for the payment or discharge of all of its outstanding indebtedness and other financial obligations as required pursuant to State statutes. 8.Disclosure to Purchasers. The District will use reasonable efforts to assure that alldevelopers of the property located within the District provide written notice to all purchasers of property in the District regarding the Maximum Debt Mill Levy, as well as a general description of the District’s authority to impose and collect rates, Fees, tolls and charges. The form of notice shall be filed with the City prior to the initial issuance of the Debt by the District and shall be recorded in the Service Area. 9.Annual Report. The District shall be responsible for submitting an annual report to the City Clerk at the City’s administrative offices by no later than September 1st of each year following the year in which the Service Plan is approved by the City Council. The annual report shall reflect activity and financial events of the District during the Report Year. 1232.968232 E-4 10. Maximum Debt Mill Levy. The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is permitted to impose upon the taxable property within the District for payment of Debt, and shall be determined as follows: (a) For the portion of any aggregate Debt which exceeds fifty percent (50%) of the District’s assessed valuation, the Maximum Debt Mill Levy for such portion of Debt shall be Sixty (60) mills less the number of mills necessary to pay unlimited mill levy Debt described in Section (b) below; provided that if, on or after January 1, 2018, changes are made in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement; the mill levy limitation applicable to such Debt 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 for changes occurring after January 1, 2018, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed valuation. (b) For the portion of any aggregate Debt which is equal to or less than fifty percent (50%) of the District’s assessed valuation, either on the date of issuance or at any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is necessary to pay the Debt service on such Debt, without limitation of rate. (c) For purposes of the foregoing, once Debt has been determined to be within Section (b) above, such that the District is entitled to pledge to its payment an unlimited ad valorem mill levy, the District may provide that such Debt shall remain secured by such unlimited mill levy, notwithstanding any subsequent change in such District’s Debt to assessed ratio. All Debt issued by the District must be issued in compliance with the requirements of Section 32-1-1101, C.R.S. and all other requirements of State law. To the extent that the District is composed of or subsequently organized into one or more subdistricts as permitted under Section 32-1-1101, C.R.S., the term “District” as used herein shall be deemed to refer to the District and to each such subdistrict separately, so that each of the subdistricts shall be treated as a separate, independent district for purposes of the application of the definitions and limitations herein. 11. Notices. All notices, demands, requests or other communications to be sent by one Party to the other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by delivery of same in person to the address or by courier delivery, via United Parcel Service or other nationally recognized overnight air courier service, or by depositing same in the United States mail, postage prepaid, addressed as follows: 1232.968232 E-5 To the District: Hance Ranch Metropolitan District 2154 East Commons Ave., Suite 2000 Centennial, CO 80122 ATTN: Kristin Tompkins, Esq. Phone: (303) 858-1800 Fax: (303) 858-1801 Email: ktompkins@wbapc.com To the City: City of Wheat Ridge 7500 W. 29th Ave., Wheat Ridge, CO 80033 ATTN: Patrick Goff, City Manager Phone: (303) 235-2805 Email: pgoff@ci.wheatridge.co.us With a copy to: Murray Dahl Kuechenmeister & Renaud LLP 710 Kipling Street, Suite 300 Lakewood, CO 80215 ATTN: Gerald Dahl Phone: (303) 493-6670 Email: gdahl@mdkrlaw.com All notices, demands, requests or other communications shall be effective upon such personal delivery or 1 business day after being deposited with United Parcel Service or other nationally recognized overnight air courier service or 3 business days after deposit in the United States mail. By giving the other party hereto at least 10 days written notice thereof in accordance with the provisions hereof, each of the Parties shall have the right from time to time to change its address. 12. Amendment. This Agreement may be amended, modified, changed, or terminated in whole or in part only by a written agreement duly authorized and executed by the Parties hereto and without amendment to the Service Plan. 13. Assignment. No Party hereto shall assign any of its rights nor delegate any of its duties hereunder to any person or entity without having first obtained the prior written consent of all other Parties, which consent will not be unreasonably withheld. Any purported assignment or delegation in violation of the provisions hereof shall be void and ineffectual. 14. Default/Remedies. In the event of a breach or default of this Agreement by any Party, the non-defaulting Parties shall be entitled to exercise all remedies available at law or in equity, specifically including suits for specific performance and/or monetary damages. In the event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing Party/Parties in such proceeding shall be entitled to obtain as part of its judgment or award its reasonable attorneys’ fees. 1232.968232 E-6 15. Governing Law and Venue. This Agreement shall be governed and construed under the laws of the State of Colorado and venue shall be in the District Court in and for the county in which the District is located. 16. Inurement. Each of the terms, covenants and conditions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. 17. Integration. This Agreement constitutes the entire agreement between the Parties with respect to the matters addressed herein. All prior discussions and negotiations regarding the subject matter hereof are merged herein. 18. Parties Interested Herein. Nothing expressed or implied in this Agreement is intended or shall be construed to confer upon, or to give to, any person other than the District and the City any right, remedy, or claim under or by reason of this Agreement or any covenants, terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions in this Agreement by and on behalf of the District and the City shall be for the sole and exclusive benefit of the District and the City. 19. Severability. If any covenant, term, condition, or provision under this Agreement shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of such covenant, term, condition, or provision shall not affect any other provision contained herein, the intention being that such provisions are severable. 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which shall constitute one and the same document. 21. Paragraph Headings. Paragraph headings are inserted for convenience of reference only. 22. Defined Terms. Capitalized terms used herein and not otherwise defined shall have meanings ascribed to them in the Service Plan. (Signature page follows) 1232.968232 F-1 EXHIBIT F Capital Plan PROJECT: # OF LOTS: DISTRICT BUDGET DESCRIPTION 08/01/19 PREDEVELOPMENT PERMIT FEES $65,431.96 Subtotal $65,431.96 PUBLIC IMPROVEMENTS SOIL TESTING $71,150.00 SURVEYING $85,000.00 MOBILIZATION $20,000.00 GRADING $107,651.00 DEMOLITION $23,239.00 SEWER $131,225.00 WATER $237,257.00 STORM SEWER $161,391.00 STREET LIGHTS $129,946.00 CURB, GUTTER & CITY WALK $164,854.10 PAVING & ADJUSTMENT $196,542.00 SIGNAGE & STRIPING $16,500.00 LANDSCAPING $291,044.00 Subtotal $1,635,799.10 CUMULATIVE SUBTOTAL $1,701,231.06 MISCELLANEOUS COSTS CONTINGENCY $119,086.17 Subtotal $119,086.17 CUMULATIVE SUBTOTAL $1,820,317.24 MANAGEMENT FEE $45,507.93 GRAND TOTAL $1,865,825.17 8/9/2019, 10:00 AM Page 1 of 1 Hance Ranch District Budget Comparison 82019.xlsx 1232.968232 G-1 EXHIBIT G Financial Plan H A N C E R A N C H S T A T I O N M E T R O P O L I T A N D I S T R I C T 1 D e v e l o p m e n t P r o j e c t i o n a t 6 0 . 0 0 0 ( t a r g e t ) D i s t r i c t M i l l s - - S E R V I C E P L A N 20 5 0 S e r i e s 2 0 2 1 , G . O . B o n d s , N o n - R a t e d , 1 0 0 x , 3 0 - y r . M a t u r i t y 20 5 0 < < < < < < < < R e s i d e n t i a l > > > > > > > > < P l a t t e d / D e v e l o p e d L o t s > Mk t V a l u e As ' e d V a l u e As ' e d V a l u e Di s t r i c t Dis t r i c t Dis t r i c t Bi e n n i a l @ 7 . 2 0 % @ 2 9 . 0 0 % To t a l D/ S M i l l L e v y D / S M i l l L e v y S . O . T ax e s Total Total To t a l R e a s s e s ' m t C u m u l a t i v e o f M a r k e t C u m u l a t i v e o f M a r k e t A s s e s s e d [ 6 0 . 0 0 0 T a r g e t ] C o l l e c t i o n s C o l l e c t e d F a c ility Fees A v a i l a b l e YE A R Re s ' l U n i t s @ 6 . 0 % M a r k e t V a l u e ( 2 - y r l a g ) M a r k e t V a l u e ( 2 - y r l a g ) Va l u e [6 0 . 0 0 0 C a p ] @ 9 8 % @ 6 % Co l l e c t i o n s R e v e n u e 20 1 7 0 0 $0 $0 0 $0 $0 $0 20 1 8 0 0 0 0 0 0 0 0 20 1 9 0 0 0 0 0 0 6 0 . 0 0 0 0 0 0 0 20 2 0 0 0 0 0 1 , 4 4 0 , 0 0 0 0 0 6 0 . 0 0 0 0 0 0 0 20 2 1 32 14 , 9 8 1 , 7 6 0 0 1 , 3 9 5 , 0 0 0 0 0 6 0 . 0 0 0 0 0 0 0 20 2 2 31 8 9 8 , 9 0 6 3 0 , 6 8 4 , 5 1 7 0 0 4 1 7 , 6 0 0 4 1 7 , 6 0 0 6 0 . 0 0 0 2 4 , 5 5 5 1, 4 7 3 0 2 6 , 0 2 8 20 2 3 0 30 , 6 8 4 , 5 1 7 1 , 0 7 8 , 6 8 7 0 4 0 4 , 5 5 0 1 , 4 8 3 , 2 3 7 6 0 . 0 0 0 8 7 , 2 1 4 5, 2 3 3 0 9 2 , 4 4 7 20 2 4 0 1 , 8 4 1 , 0 7 1 3 2 , 5 2 5 , 5 8 8 2 , 2 0 9 , 2 8 5 0 0 2 , 2 0 9 , 2 8 5 6 0 . 0 0 0 1 2 9 , 9 0 6 7, 7 9 4 0 1 3 7 , 7 0 0 20 2 5 0 32 , 5 2 5 , 5 8 8 2 , 2 0 9 , 2 8 5 0 0 2 , 2 0 9 , 2 8 5 6 0 . 0 0 0 1 2 9 , 9 0 6 7, 7 9 4 0 1 3 7 , 7 0 0 20 2 6 0 1 , 9 5 1 , 5 3 5 3 4 , 4 7 7 , 1 2 4 2 , 3 4 1 , 8 4 2 0 0 2 , 3 4 1 , 8 4 2 6 0 . 0 0 0 1 3 7 , 7 0 0 8, 2 6 2 0 1 4 5 , 9 6 2 20 2 7 0 34 , 4 7 7 , 1 2 4 2 , 3 4 1 , 8 4 2 0 0 2 , 3 4 1 , 8 4 2 6 0 . 0 0 0 1 3 7 , 7 0 0 8, 2 6 2 0 1 4 5 , 9 6 2 20 2 8 0 2 , 0 6 8 , 6 2 7 3 6 , 5 4 5 , 7 5 1 2 , 4 8 2 , 3 5 3 0 0 2 , 4 8 2 , 3 5 3 6 0 . 0 0 0 1 4 5 , 9 6 2 8, 7 5 8 0 1 5 4 , 7 2 0 20 2 9 0 36 , 5 4 5 , 7 5 1 2 , 4 8 2 , 3 5 3 0 0 2 , 4 8 2 , 3 5 3 6 0 . 0 0 0 1 4 5 , 9 6 2 8, 7 5 8 0 1 5 4 , 7 2 0 20 3 0 0 2 , 1 9 2 , 7 4 5 3 8 , 7 3 8 , 4 9 6 2 , 6 3 1 , 2 9 4 0 0 2 , 6 3 1 , 2 9 4 6 0 . 0 0 0 1 5 4 , 7 2 0 9, 2 8 3 0 1 6 4 , 0 0 3 20 3 1 0 38 , 7 3 8 , 4 9 6 2 , 6 3 1 , 2 9 4 0 0 2 , 6 3 1 , 2 9 4 6 0 . 0 0 0 1 5 4 , 7 2 0 9, 2 8 3 0 1 6 4 , 0 0 3 20 3 2 0 2 , 3 2 4 , 3 1 0 4 1 , 0 6 2 , 8 0 6 2 , 7 8 9 , 1 7 2 0 0 2 , 7 8 9 , 1 7 2 6 0 . 0 0 0 1 6 4 , 0 0 3 9, 8 4 0 0 1 7 3 , 8 4 3 20 3 3 0 41 , 0 6 2 , 8 0 6 2 , 7 8 9 , 1 7 2 0 0 2 , 7 8 9 , 1 7 2 6 0 . 0 0 0 1 6 4 , 0 0 3 9, 8 4 0 0 1 7 3 , 8 4 3 20 3 4 0 2 , 4 6 3 , 7 6 8 4 3 , 5 2 6 , 5 7 4 2 , 9 5 6 , 5 2 2 0 0 2 , 9 5 6 , 5 2 2 6 0 . 0 0 0 1 7 3 , 8 4 3 1 0 , 4 3 1 0 1 8 4 , 2 7 4 20 3 5 0 43 , 5 2 6 , 5 7 4 2 , 9 5 6 , 5 2 2 0 0 2 , 9 5 6 , 5 2 2 6 0 . 0 0 0 1 7 3 , 8 4 3 1 0 , 4 3 1 0 1 8 4 , 2 7 4 20 3 6 0 2 , 6 1 1 , 5 9 4 4 6 , 1 3 8 , 1 6 9 3 , 1 3 3 , 9 1 3 0 0 3 , 1 3 3 , 9 1 3 6 0 . 0 0 0 1 8 4 , 2 7 4 1 1 , 0 5 6 0 1 9 5 , 3 3 1 20 3 7 0 46 , 1 3 8 , 1 6 9 3 , 1 3 3 , 9 1 3 0 0 3 , 1 3 3 , 9 1 3 6 0 . 0 0 0 1 8 4 , 2 7 4 1 1 , 0 5 6 0 1 9 5 , 3 3 1 20 3 8 2, 7 6 8 , 2 9 0 4 8 , 9 0 6 , 4 5 9 3 , 3 2 1 , 9 4 8 0 0 3 , 3 2 1 , 9 4 8 6 0 . 0 0 0 1 9 5 , 3 3 1 1 1 , 7 2 0 207,050 20 3 9 48 , 9 0 6 , 4 5 9 3 , 3 2 1 , 9 4 8 0 0 3 , 3 2 1 , 9 4 8 6 0 . 0 0 0 1 9 5 , 3 3 1 1 1 , 7 2 0 207,050 20 4 0 2, 9 3 4 , 3 8 8 5 1 , 8 4 0 , 8 4 6 3 , 5 2 1 , 2 6 5 0 0 3 , 5 2 1 , 2 6 5 6 0 . 0 0 0 2 0 7 , 0 5 0 1 2 , 4 2 3 219,473 20 4 1 51 , 8 4 0 , 8 4 6 3 , 5 2 1 , 2 6 5 0 0 3 , 5 2 1 , 2 6 5 6 0 . 0 0 0 2 0 7 , 0 5 0 1 2 , 4 2 3 219,473 20 4 2 3, 1 1 0 , 4 5 1 5 4 , 9 5 1 , 2 9 7 3 , 7 3 2 , 5 4 1 0 0 3 , 7 3 2 , 5 4 1 6 0 . 0 0 0 2 1 9 , 4 7 3 1 3 , 1 6 8 232,642 20 4 3 54 , 9 5 1 , 2 9 7 3 , 7 3 2 , 5 4 1 0 0 3 , 7 3 2 , 5 4 1 6 0 . 0 0 0 2 1 9 , 4 7 3 1 3 , 1 6 8 232,642 20 4 4 3, 2 9 7 , 0 7 8 5 8 , 2 4 8 , 3 7 5 3 , 9 5 6 , 4 9 3 0 0 3 , 9 5 6 , 4 9 3 6 0 . 0 0 0 2 3 2 , 6 4 2 1 3 , 9 5 9 246,600 20 4 5 58 , 2 4 8 , 3 7 5 3 , 9 5 6 , 4 9 3 0 0 3 , 9 5 6 , 4 9 3 6 0 . 0 0 0 2 3 2 , 6 4 2 1 3 , 9 5 9 246,600 20 4 6 3, 4 9 4 , 9 0 2 6 1 , 7 4 3 , 2 7 7 4 , 1 9 3 , 8 8 3 0 0 4 , 1 9 3 , 8 8 3 6 0 . 0 0 0 2 4 6 , 6 0 0 1 4 , 7 9 6 261,396 20 4 7 61 , 7 4 3 , 2 7 7 4 , 1 9 3 , 8 8 3 0 0 4 , 1 9 3 , 8 8 3 6 0 . 0 0 0 2 4 6 , 6 0 0 1 4 , 7 9 6 261,396 20 4 8 3, 7 0 4 , 5 9 7 6 5 , 4 4 7 , 8 7 4 4 , 4 4 5 , 5 1 6 0 0 4 , 4 4 5 , 5 1 6 6 0 . 0 0 0 2 6 1 , 3 9 6 1 5 , 6 8 4 277,080 20 4 9 65 , 4 4 7 , 8 7 4 4 , 4 4 5 , 5 1 6 0 0 4 , 4 4 5 , 5 1 6 6 0 . 0 0 0 2 6 1 , 3 9 6 1 5 , 6 8 4 277,080 20 5 0 3, 9 2 6 , 8 7 2 6 9 , 3 7 4 , 7 4 6 4 , 7 1 2 , 2 4 7 0 4 , 7 1 2 , 2 4 7 6 0 . 0 0 0 2 7 7 , 0 8 0 1 6 , 6 2 5 293,705 20 5 1 69 , 3 7 4 , 7 4 6 4 , 7 1 2 , 2 4 7 0 4 , 7 1 2 , 2 4 7 6 0 . 0 0 0 2 7 7 , 0 8 0 1 6 , 6 2 5 293,705 __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 63 3 9 , 5 8 9 , 1 3 5 5, 5 7 1 , 7 3 4 3 3 4 , 3 0 4 0 5 , 9 0 6 , 0 3 8 4/2 3 / 2 0 1 9 B H R S M D F i n P l a n 1 9 NR S P F i n P l a n Prepared by D.A.Davidson & Co.Draft: For discussion purposes only.1 1 20 5 0 20 5 0 YE A R 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 4 1 20 4 2 20 4 3 20 4 4 20 4 5 20 4 6 20 4 7 20 4 8 20 4 9 20 5 0 20 5 1 H A N C E R A N C H S T A T I O N M E T R O P O L I T A N D I S T R I C T D e v e l o p m e n t P r o j e c t i o n a t 6 0 . 0 0 0 ( t a r g e t ) D i s t r i c t M i l l s - - S E R V I C E P L A N S e r i e s 2 0 2 1 , G . O . B o n d s , N o n - R a t e d , 1 0 0 x , 3 0 - y r . M a t u r i t y Se r i e s 2 0 2 1 $2 , 8 5 5 , 0 0 0 P a r S u r p l u s S e n i o r S e n i o r C o v . o f N e t D S : C o v . o f N e t D S : [N e t $ 2 . 0 2 2 M M ] An n u a l Re l e a s e @ Cu m u l a t i v e De b t / De b t / @ 6 0 . 0 0 0 T a r g e t @ 6 0 . 0 0 0 C a p Ne t A v a i l a b l e Ne t D e b t Su r p l u s 50 % D / A Su r p l u s As s e s s e d A c t ' l V a l u e & 0 . 0 U . R . A . M i l l s & 0 . 0 U . R . A . M i l l s fo r D e b t S v c Se r v i c e to $ 2 8 5 , 5 0 0 $ 2 8 5 , 5 0 0 T a r g e t R a t i o Ra t i o + P I F R e v s ( n e t ) + P I F R e v s ( n e t ) $0 0 0 0 0$ 0 0 0 0 % 0 % 0 % 0 % 26 , 0 2 8 0 2 6 , 0 2 8 0 2 6 , 0 2 8 1 9 2 % 9 % 0 % 0 % 92 , 4 4 7 7 1 , 3 7 5 2 1 , 0 7 2 0 4 7 , 1 0 0 1 2 9 % 9 % 1 3 0 % 1 3 0 % 13 7 , 7 0 0 1 4 2 , 7 5 0 ( 5 , 0 5 0 ) 0 4 2 , 0 5 1 1 2 9 % 9 % 9 7 % 9 7 % 13 7 , 7 0 0 1 4 2 , 7 5 0 ( 5 , 0 5 0 ) 0 3 7 , 0 0 1 1 2 2 % 8 % 9 7 % 9 7 % 14 5 , 9 6 2 1 4 2 , 7 5 0 3 , 2 1 2 0 4 0 , 2 1 3 1 2 2 % 8 % 1 0 2 % 1 0 2 % 14 5 , 9 6 2 1 4 2 , 7 5 0 3 , 2 1 2 0 4 3 , 4 2 6 1 1 5 % 8 % 1 0 2 % 1 0 2 % 15 4 , 7 2 0 1 5 2 , 7 5 0 1 , 9 7 0 0 4 5 , 3 9 6 1 1 5 % 8 % 1 0 1 % 1 0 1 % 15 4 , 7 2 0 1 5 2 , 2 5 0 2 , 4 7 0 0 4 7 , 8 6 6 1 0 8 % 7 % 1 0 2 % 1 0 2 % 16 4 , 0 0 3 1 6 1 , 7 5 0 2 , 2 5 3 0 5 0 , 1 1 9 1 0 8 % 7 % 1 0 1 % 1 0 1 % 16 4 , 0 0 3 1 6 0 , 7 5 0 3 , 2 5 3 0 5 3 , 3 7 2 1 0 1 % 7 % 1 0 2 % 1 0 2 % 17 3 , 8 4 3 1 6 9 , 7 5 0 4 , 0 9 3 0 5 7 , 4 6 6 1 0 0 % 7 % 1 0 2 % 1 0 2 % 17 3 , 8 4 3 1 7 3 , 2 5 0 5 9 3 0 5 8 , 0 5 9 9 4 % 6 % 1 0 0 % 1 0 0 % 18 4 , 2 7 4 1 8 1 , 5 0 0 2 , 7 7 4 0 6 0 , 8 3 4 9 2 % 6 % 1 0 2 % 1 0 2 % 18 4 , 2 7 4 1 7 9 , 2 5 0 5 , 0 2 4 0 6 5 , 8 5 8 8 6 % 6 % 1 0 3 % 1 0 3 % 19 5 , 3 3 1 1 9 2 , 0 0 0 3 , 3 3 1 0 6 9 , 1 8 8 8 4 % 6 % 1 0 2 % 1 0 2 % 19 5 , 3 3 1 1 9 4 , 0 0 0 1 , 3 3 1 0 7 0 , 5 1 9 7 8 % 5 % 1 0 1 % 1 0 1 % 20 7 , 0 5 0 2 0 5 , 7 5 0 1 , 3 0 0 0 7 1 , 8 1 9 7 6 % 5 % 1 0 1 % 1 0 1 % 20 7 , 0 5 0 2 0 6 , 7 5 0 3 0 0 0 7 2 , 1 2 0 6 9 % 5 % 1 0 0 % 1 0 0 % 21 9 , 4 7 3 2 1 7 , 5 0 0 1 , 9 7 3 0 7 4 , 0 9 3 6 7 % 5 % 1 0 1 % 1 0 1 % 21 9 , 4 7 3 2 1 7 , 5 0 0 1 , 9 7 3 0 7 6 , 0 6 6 6 0 % 4 % 1 0 1 % 1 0 1 % 23 2 , 6 4 2 2 3 2 , 2 5 0 3 9 2 0 7 6 , 4 5 8 5 7 % 4 % 1 0 0 % 1 0 0 % 23 2 , 6 4 2 2 3 1 , 0 0 0 1 , 6 4 2 0 7 8 , 1 0 0 5 1 % 3 % 1 0 1 % 1 0 1 % 24 6 , 6 0 0 2 4 4 , 5 0 0 2 , 1 0 0 0 8 0 , 2 0 0 4 8 % 3 % 1 0 1 % 1 0 1 % 24 6 , 6 0 0 2 4 2 , 0 0 0 4 , 6 0 0 0 8 4 , 8 0 1 4 1 % 3 % 1 0 2 % 1 0 2 % 26 1 , 3 9 6 2 5 9 , 2 5 0 2 , 1 4 6 0 8 6 , 9 4 7 3 8 % 3 % 1 0 1 % 1 0 1 % 26 1 , 3 9 6 2 6 0 , 2 5 0 1 , 1 4 6 0 8 8 , 0 9 3 3 2 % 2 % 1 0 0 % 1 0 0 % 27 7 , 0 8 0 2 7 5 , 7 5 0 1 , 3 3 0 0 8 9 , 4 2 3 2 7 % 2 % 1 0 1 % 1 0 1 % 27 7 , 0 8 0 2 7 5 , 0 0 0 2 , 0 8 0 0 9 1 , 5 0 4 2 1 % 1 % 1 0 1 % 1 0 1 % 29 3 , 7 0 5 2 8 8 , 7 5 0 4 , 9 5 5 0 9 6 , 4 5 8 1 6 % 1 % 1 0 2 % 1 0 2 % 29 3 , 7 0 5 2 8 9 , 5 3 1 4 , 1 7 4 1 0 0 , 6 3 2 0 1 1 % 1 % 1 0 1 % 1 0 1 % __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5,9 0 6 , 0 3 8 5 , 8 0 5 , 4 0 6 1 0 0 , 6 3 2 1 0 0 , 6 3 2 [B A p r 2 3 1 9 2 1 n r s p B 4/2 3 / 2 0 1 9 B H R S M D F i n P l a n 1 9 NR S P F i n P l a n Prepared by D.A.Davidson & Co.Draft: For discussion purposes only.2 1 20 5 0 20 5 0 YE A R 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 4 1 20 4 2 20 4 3 20 4 4 20 4 5 20 4 6 20 4 7 20 4 8 20 4 9 20 5 0 20 5 1 H A N C E R A N C H S T A T I O N M E T R O P O L I T A N D I S T R I C T O p e r a t i o n s R e v e n u e a n d E x p e n s e P r o j e c t i o n To t a l To t a l S. O . T a x e s To t a l As s e s s e d Op e r ' n s C o l l e c t i o n s Co l l e c t e d Av a i l a b l e T o t a l Va l u e Mil l L e v y @ 9 8 % @ 6 % Fo r O & M Mi l l s 0 1 0 . 0 0 0 0 0 0 7 0 . 0 0 0 0 1 0 . 0 0 0 0 0 0 7 0 . 0 0 0 0 1 0 . 0 0 0 0 0 0 7 0 . 0 0 0 41 7 , 6 0 0 1 0 . 0 0 0 4, 0 9 2 24 6 4, 3 3 8 7 0 . 0 0 0 1, 4 8 3 , 2 3 7 1 0 . 0 0 0 14 , 5 3 6 87 2 15 , 4 0 8 7 0 . 0 0 0 2, 2 0 9 , 2 8 5 1 0 . 0 0 0 21 , 6 5 1 1,2 9 9 22 , 9 5 0 7 0 . 0 0 0 2, 2 0 9 , 2 8 5 1 0 . 0 0 0 21 , 6 5 1 1,2 9 9 22 , 9 5 0 7 0 . 0 0 0 2, 3 4 1 , 8 4 2 1 0 . 0 0 0 22 , 9 5 0 1,3 7 7 24 , 3 2 7 7 0 . 0 0 0 2, 3 4 1 , 8 4 2 1 0 . 0 0 0 22 , 9 5 0 1,3 7 7 24 , 3 2 7 7 0 . 0 0 0 2, 4 8 2 , 3 5 3 1 0 . 0 0 0 24 , 3 2 7 1,4 6 0 25 , 7 8 7 7 0 . 0 0 0 2, 4 8 2 , 3 5 3 1 0 . 0 0 0 24 , 3 2 7 1,4 6 0 25 , 7 8 7 7 0 . 0 0 0 2, 6 3 1 , 2 9 4 1 0 . 0 0 0 25 , 7 8 7 1,5 4 7 27 , 3 3 4 7 0 . 0 0 0 2, 6 3 1 , 2 9 4 1 0 . 0 0 0 25 , 7 8 7 1,5 4 7 27 , 3 3 4 7 0 . 0 0 0 2, 7 8 9 , 1 7 2 1 0 . 0 0 0 27 , 3 3 4 1,6 4 0 28 , 9 7 4 7 0 . 0 0 0 2, 7 8 9 , 1 7 2 1 0 . 0 0 0 27 , 3 3 4 1,6 4 0 28 , 9 7 4 7 0 . 0 0 0 2, 9 5 6 , 5 2 2 1 0 . 0 0 0 28 , 9 7 4 1,7 3 8 30 , 7 1 2 7 0 . 0 0 0 2, 9 5 6 , 5 2 2 1 0 . 0 0 0 28 , 9 7 4 1,7 3 8 30 , 7 1 2 7 0 . 0 0 0 3, 1 3 3 , 9 1 3 1 0 . 0 0 0 30 , 7 1 2 1,8 4 3 32 , 5 5 5 7 0 . 0 0 0 3, 1 3 3 , 9 1 3 1 0 . 0 0 0 30 , 7 1 2 1,8 4 3 32 , 5 5 5 7 0 . 0 0 0 3, 3 2 1 , 9 4 8 1 0 . 0 0 0 32 , 5 5 5 1,9 5 3 34 , 5 0 8 7 0 . 0 0 0 3, 3 2 1 , 9 4 8 1 0 . 0 0 0 32 , 5 5 5 1,9 5 3 34 , 5 0 8 7 0 . 0 0 0 3, 5 2 1 , 2 6 5 1 0 . 0 0 0 34 , 5 0 8 2,0 7 1 36 , 5 7 9 7 0 . 0 0 0 3, 5 2 1 , 2 6 5 1 0 . 0 0 0 34 , 5 0 8 2,0 7 1 36 , 5 7 9 7 0 . 0 0 0 3, 7 3 2 , 5 4 1 1 0 . 0 0 0 36 , 5 7 9 2,1 9 5 38 , 7 7 4 7 0 . 0 0 0 3, 7 3 2 , 5 4 1 1 0 . 0 0 0 36 , 5 7 9 2,1 9 5 38 , 7 7 4 7 0 . 0 0 0 3, 9 5 6 , 4 9 3 1 0 . 0 0 0 38 , 7 7 4 2,3 2 6 41 , 1 0 0 7 0 . 0 0 0 3, 9 5 6 , 4 9 3 1 0 . 0 0 0 38 , 7 7 4 2,3 2 6 41 , 1 0 0 7 0 . 0 0 0 4, 1 9 3 , 8 8 3 1 0 . 0 0 0 41 , 1 0 0 2,4 6 6 43 , 5 6 6 7 0 . 0 0 0 4, 1 9 3 , 8 8 3 1 0 . 0 0 0 41 , 1 0 0 2,4 6 6 43 , 5 6 6 7 0 . 0 0 0 4, 4 4 5 , 5 1 6 1 0 . 0 0 0 43 , 5 6 6 2,6 1 4 46 , 1 8 0 7 0 . 0 0 0 4, 4 4 5 , 5 1 6 1 0 . 0 0 0 43 , 5 6 6 2,6 1 4 46 , 1 8 0 7 0 . 0 0 0 4, 7 1 2 , 2 4 7 1 0 . 0 0 0 46 , 1 8 0 2,7 7 1 48 , 9 5 1 7 0 . 0 0 0 4, 7 1 2 , 2 4 7 1 0 . 0 0 0 46 , 1 8 0 2,7 7 1 48 , 9 5 1 7 0 . 0 0 0 __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 92 8 , 6 2 2 55 , 7 1 7 98 4 , 3 4 0 4/2 3 / 2 0 1 9 B H R S M D F i n P l a n 1 9 NR S P F i n P l a n Prepared by D.A.Davidson & Co.Draft: For discussion purposes only.3 H A N C E R A N C H S T A T I O N M E T R O P O L I T A N D I S T R I C T D e v e l o p m e n t P r o j e c t i o n - - B u i l d o u t P l a n ( u p d a t e d 4 / 1 8 / 1 9 ) 20 5 0 10 0 % 0 R e s i d e n t i a l D e v e l o p m e n t R e s i d e n t i a l S u m m a r y SF D In c r / ( D e c r ) i n Fi n i s h e d L o t # U n i t s P r i c e To t a l Value +/- of Platted & # L o t s V a l u e @ C o m p l e t e d I n f l a t e d @ M a r k e t Re s i d e n t i a l To t a l Developed Lots YE A R De v e l ' d 1 0 % 63 t a r g e t 2 % Va l u e Ma r k e t V a l u e R e s ' l U n i t s Ad j u s t m e n t A d j u s t e d V a l u e 20 1 7 0 0 $4 5 0 , 0 0 0 0 $0 0 0 0 20 1 8 0 0 45 0 , 0 0 0 0 0 0 0 0 20 1 9 0 0 45 0 , 0 0 0 0 0 0 0 0 20 2 0 32 1 , 4 4 0 , 0 0 0 45 9 , 0 0 0 0 0 0 0 1,440,000 20 2 1 31 ( 4 5 , 0 0 0 ) 32 4 6 8 , 1 8 0 1 4 , 9 8 1 , 7 6 0 14 , 9 8 1 , 7 6 0 32 0 (45,000) 20 2 2 0 ( 1 , 3 9 5 , 0 0 0 ) 31 4 7 7 , 5 4 4 1 4 , 8 0 3 , 8 5 2 14 , 8 0 3 , 8 5 2 31 0 (1,395,000) 20 2 3 0 0 0 4 8 7 , 0 9 4 0 0 0 0 0 20 2 4 0 0 0 4 9 6 , 8 3 6 0 0 0 0 0 20 2 5 0 0 0 5 0 6 , 7 7 3 0 0 0 0 0 20 2 6 0 0 0 5 1 6 , 9 0 9 0 0 0 0 0 20 2 7 0 0 0 5 2 7 , 2 4 7 0 0 0 0 0 20 2 8 0 0 0 5 3 7 , 7 9 2 0 0 0 0 0 20 2 9 0 0 0 5 4 8 , 5 4 7 0 0 0 0 0 20 3 0 0 0 0 5 5 9 , 5 1 8 0 0 0 0 0 20 3 1 0 0 0 5 7 0 , 7 0 9 0 0 0 0 0 20 3 2 0 0 0 5 8 2 , 1 2 3 0 0 0 0 0 20 3 3 0 0 0 5 9 3 , 7 6 5 0 0 0 0 0 20 3 4 0 0 0 6 0 5 , 6 4 1 0 0 0 0 0 20 3 5 0 0 0 6 1 7 , 7 5 4 0 0 0 0 0 20 3 6 0 0 0 6 3 0 , 1 0 9 0 0 0 0 0 20 3 7 0 0 6 4 2 , 7 1 1 0 0 0 0 0 __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 63 0 63 29 , 7 8 5 , 6 1 2 29 , 7 8 5 , 6 1 2 63 0 0 4/ 1 8 / 2 0 1 9 B H R S M D F i n P l a n 1 9 Ab s Prepared by D.A. Davidson & Co.4 Apr 23, 2019 10:02 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Hance Ranch Station MD 19 (f...:BAPR1719-21NRSPB) SOURCES AND USES OF FUNDS HANCE RANCH STATION METROPOLITAN DISTRICTGENERAL OBLIGATION BONDS, SERIES 202160.000 (target) MillsNon-Rated, 100x, 30-yr. Maturity(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)[ Preliminary -- for discussion only ] Dated Date 12/01/2021Delivery Date 12/01/2021 Sources: Bond Proceeds:Par Amount 2,855,000.00 2,855,000.00 Uses: Project Fund Deposits:Project Fund 2,022,056.25 Other Fund Deposits:Capitalized Interest Fund 214,125.00Debt Service Reserve Fund 261,718.75475,843.75 Cost of Issuance:Other Cost of Issuance 300,000.00 Delivery Date Expenses:Underwriter's Discount 57,100.00 2,855,000.00 5 Apr 23, 2019 10:02 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Hance Ranch Station MD 19 (f...:BAPR1719-21NRSPB) BOND SUMMARY STATISTICS HANCE RANCH STATION METROPOLITAN DISTRICTGENERAL OBLIGATION BONDS, SERIES 202160.000 (target) MillsNon-Rated, 100x, 30-yr. Maturity(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)[ Preliminary -- for discussion only ] Dated Date 12/01/2021Delivery Date 12/01/2021First Coupon 06/01/2022Last Maturity 12/01/2051 Arbitrage Yield 5.000000%True Interest Cost (TIC)5.148830%Net Interest Cost (NIC)5.000000%All-In TIC 6.010454%Average Coupon 5.000000% Average Life (years)24.002Weighted Average Maturity (years)24.002Duration of Issue (years)13.861 Par Amount 2,855,000.00Bond Proceeds 2,855,000.00Total Interest 3,426,250.00Net Interest 3,483,350.00Bond Years from Dated Date 68,525,000.00Bond Years from Delivery Date 68,525,000.00Total Debt Service 6,281,250.00Maximum Annual Debt Service 551,250.00Average Annual Debt Service 209,375.00 Underwriter's Fees (per $1000) Average Takedown Other Fee 20.000000 Total Underwriter's Discount 20.000000 Bid Price 98.000000 AverageParAverage Average Maturity PV of 1 bpBond Component Value Price Coupon Life Date change Term Bond due 2051 2,855,000.00 100.000 5.000% 24.002 12/01/2045 4,425.25 2,855,000.00 24.002 4,425.25 All-In ArbitrageTICTICYield Par Value 2,855,000.00 2,855,000.00 2,855,000.00 + Accrued Interest + Premium (Discount) - Underwriter's Discount -57,100.00 -57,100.00 - Cost of Issuance Expense -300,000.00 - Other Amounts Target Value 2,797,900.00 2,497,900.00 2,855,000.00 Target Date 12/01/2021 12/01/2021 12/01/2021Yield5.148830%6.010454%5.000000% 6 Apr 23, 2019 10:02 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Hance Ranch Station MD 19 (f...:BAPR1719-21NRSPB) BOND DEBT SERVICE HANCE RANCH STATION METROPOLITAN DISTRICTGENERAL OBLIGATION BONDS, SERIES 202160.000 (target) MillsNon-Rated, 100x, 30-yr. Maturity(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)[ Preliminary -- for discussion only ] AnnualPeriod Debt DebtEnding Principal Coupon Interest Service Service 06/01/2022 71,375 71,37512/01/2022 71,375 71,375 142,75006/01/2023 71,375 71,37512/01/2023 71,375 71,375 142,75006/01/2024 71,375 71,37512/01/2024 71,375 71,375 142,75006/01/2025 71,375 71,37512/01/2025 71,375 71,375 142,75006/01/2026 71,375 71,37512/01/2026 71,375 71,375 142,75006/01/2027 71,375 71,37512/01/2027 71,375 71,375 142,75006/01/2028 71,375 71,37512/01/2028 10,000 5.000% 71,375 81,375 152,75006/01/2029 71,125 71,12512/01/2029 10,000 5.000% 71,125 81,125 152,25006/01/2030 70,875 70,87512/01/2030 20,000 5.000% 70,875 90,875 161,75006/01/2031 70,375 70,37512/01/2031 20,000 5.000% 70,375 90,375 160,75006/01/2032 69,875 69,87512/01/2032 30,000 5.000% 69,875 99,875 169,75006/01/2033 69,125 69,12512/01/2033 35,000 5.000%69,125 104,125 173,25006/01/2034 68,250 68,25012/01/2034 45,000 5.000%68,250 113,250 181,50006/01/2035 67,125 67,12512/01/2035 45,000 5.000%67,125 112,125 179,25006/01/2036 66,000 66,00012/01/2036 60,000 5.000%66,000 126,000 192,00006/01/2037 64,500 64,50012/01/2037 65,000 5.000%64,500 129,500 194,00006/01/2038 62,875 62,87512/01/2038 80,000 5.000%62,875 142,875 205,75006/01/2039 60,875 60,87512/01/2039 85,000 5.000%60,875 145,875 206,75006/01/2040 58,750 58,75012/01/2040 100,000 5.000%58,750 158,750 217,50006/01/2041 56,250 56,25012/01/2041 105,000 5.000%56,250 161,250 217,50006/01/2042 53,625 53,62512/01/2042 125,000 5.000%53,625 178,625 232,25006/01/2043 50,500 50,50012/01/2043 130,000 5.000%50,500 180,500 231,00006/01/2044 47,250 47,25012/01/2044 150,000 5.000%47,250 197,250 244,50006/01/2045 43,500 43,50012/01/2045 155,000 5.000%43,500 198,500 242,00006/01/2046 39,625 39,62512/01/2046 180,000 5.000%39,625 219,625 259,25006/01/2047 35,125 35,12512/01/2047 190,000 5.000%35,125 225,125 260,25006/01/2048 30,375 30,37512/01/2048 215,000 5.000%30,375 245,375 275,75006/01/2049 25,000 25,00012/01/2049 225,000 5.000%25,000 250,000 275,00006/01/2050 19,375 19,37512/01/2050 250,000 5.000%19,375 269,375 288,75006/01/2051 13,125 13,12512/01/2051 525,000 5.000%13,125 538,125 551,250 2,855,000 3,426,250 6,281,250 6,281,250 7 Apr 23, 2019 10:02 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Hance Ranch Station MD 19 (f...:BAPR1719-21NRSPB) NET DEBT SERVICE HANCE RANCH STATION METROPOLITAN DISTRICTGENERAL OBLIGATION BONDS, SERIES 202160.000 (target) MillsNon-Rated, 100x, 30-yr. Maturity(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)[ Preliminary -- for discussion only ] CapitalizedPeriodTotal Debt Service Interest NetEndingPrincipal Interest Debt Service Reserve Fund Fund Debt Service 12/01/2022 142,750 142,750 142,75012/01/2023 142,750 142,750 71,375 71,375.0012/01/2024 142,750 142,750 142,750.0012/01/2025 142,750 142,750 142,750.0012/01/2026 142,750 142,750 142,750.0012/01/2027 142,750 142,750 142,750.0012/01/2028 10,000 142,750 152,750 152,750.0012/01/2029 10,000 142,250 152,250 152,250.0012/01/2030 20,000 141,750 161,750 161,750.0012/01/2031 20,000 140,750 160,750 160,750.0012/01/2032 30,000 139,750 169,750 169,750.0012/01/2033 35,000 138,250 173,250 173,250.0012/01/2034 45,000 136,500 181,500 181,500.0012/01/2035 45,000 134,250 179,250 179,250.0012/01/2036 60,000 132,000 192,000 192,000.0012/01/2037 65,000 129,000 194,000 194,000.0012/01/2038 80,000 125,750 205,750 205,750.0012/01/2039 85,000 121,750 206,750 206,750.0012/01/2040 100,000 117,500 217,500 217,500.0012/01/2041 105,000 112,500 217,500 217,500.0012/01/2042 125,000 107,250 232,250 232,250.0012/01/2043 130,000 101,000 231,000 231,000.0012/01/2044 150,000 94,500 244,500 244,500.0012/01/2045 155,000 87,000 242,000 242,000.0012/01/2046 180,000 79,250 259,250 259,250.0012/01/2047 190,000 70,250 260,250 260,250.0012/01/2048 215,000 60,750 275,750 275,750.0012/01/2049 225,000 50,000 275,000 275,000.0012/01/2050 250,000 38,750 288,750 288,750.0012/01/2051 525,000 26,250 551,250 261,718.75 289,531.25 2,855,000 3,426,250 6,281,250 261,718.75 214,125 5,805,406.25 8 Apr 23, 2019 10:02 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Hance Ranch Station MD 19 (f...:BAPR1719-21NRSPB) BOND SOLUTION HANCE RANCH STATION METROPOLITAN DISTRICTGENERAL OBLIGATION BONDS, SERIES 202160.000 (target) MillsNon-Rated, 100x, 30-yr. Maturity(SERVICE PLAN: Full Growth + 6.00% Bi-Reassessment Projections)[ Preliminary -- for discussion only ] Period Proposed Proposed Debt Service Total Adj Revenue Unused Debt ServEndingPrincipal Debt Service Adjustments Debt Service Constraints Revenues Coverage 12/01/2022 142,750 -142,750 26,028 26,02812/01/2023 142,750 -71,375 71,375 92,447 21,072 129.52319%12/01/2024 142,750 142,750 137,700 -5,050 96.46258%12/01/2025 142,750 142,750 137,700 -5,050 96.46258%12/01/2026 142,750 142,750 145,962 3,212 102.25033%12/01/2027 142,750 142,750 145,962 3,212 102.25033%12/01/2028 10,000 152,750 152,750 154,720 1,970 101.28975%12/01/2029 10,000 152,250 152,250 154,720 2,470 101.62239%12/01/2030 20,000 161,750 161,750 164,003 2,253 101.39308%12/01/2031 20,000 160,750 160,750 164,003 3,253 102.02383%12/01/2032 30,000 169,750 169,750 173,843 4,093 102.41148%12/01/2033 35,000 173,250 173,250 173,843 593 100.34256%12/01/2034 45,000 181,500 181,500 184,274 2,774 101.52843%12/01/2035 45,000 179,250 179,250 184,274 5,024 102.80285%12/01/2036 60,000 192,000 192,000 195,331 3,331 101.73466%12/01/2037 65,000 194,000 194,000 195,331 1,331 100.68585%12/01/2038 80,000 205,750 205,750 207,050 1,300 100.63202%12/01/2039 85,000 206,750 206,750 207,050 300 100.14529%12/01/2040 100,000 217,500 217,500 219,473 1,973 100.90731%12/01/2041 105,000 217,500 217,500 219,473 1,973 100.90731%12/01/2042 125,000 232,250 232,250 232,642 392 100.16870%12/01/2043 130,000 231,000 231,000 232,642 1,642 100.71074%12/01/2044 150,000 244,500 244,500 246,600 2,100 100.85903%12/01/2045 155,000 242,000 242,000 246,600 4,600 101.90096%12/01/2046 180,000 259,250 259,250 261,396 2,146 100.82790%12/01/2047 190,000 260,250 260,250 261,396 1,146 100.44048%12/01/2048 215,000 275,750 275,750 277,080 1,330 100.48236%12/01/2049 225,000 275,000 275,000 277,080 2,080 100.75641%12/01/2050 250,000 288,750 288,750 293,705 4,955 101.71599%12/01/2051 525,000 551,250 -261,719 289,531 293,705 4,174 101.44153% 2,855,000 6,281,250 -475,844 5,805,406 5,906,038 100,632 9