Metropolitan districts are local governments that finance public improvements and provide services to promote the health, safety, prosperity, security, and general welfare of the inhabitants of the districts and the people of the state of Colorado. Metropolitan districts fill the gaps that may exist in services that other local governments will not provide, and the services residents may desire. The Cottonwood Hollow Commercial Metropolitan District (the “Commercial District”) and the Cottonwood Hollow Residential Metropolitan District (the “Residential District” and together with the Commercial District, collectively, the “Districts”) will or have assisted in financing the following improvements: water transmission lines, storm sewer, sanitary sewer transmission lines, streets, traffic safety protection, and parks and recreation facilities and improvements. It is anticipated that upon completion, the improvements will be dedicated to the Town of Firestone (the “Town”), another governmental entity, or owners association for operations and maintenance, except park and recreation improvements not otherwise dedicated to the Town, another governmental entity, or owners association. The Residential District provides operations and maintenance for district-owned landscaping and park and recreation improvements.

Pursuant to the Commercial District’s Amended and Restated Service Plan, approved by the Town of Firestone on April 10, 2019 (the “Service Plan”), the District is authorized to issue debt not to exceed $20,500,000.00 and impose a maximum debt mill levy of 50 mills, subject to adjustment, as defined in the Service Plan, for repayment of such debt. The Service Plan authorizes the repayment of debt from the following sources: ad valorem taxes and other sources permitted by law, including fees, rates, tolls, penalties, charges, and special assessments.

Pursuant to the Residential District’s Amended and Restated Service Plan, approved by the Town of Firestone on April 10, 2019 (the “Service Plan”), the District is authorized to issue debt not to exceed $30,000,000.00 and impose a maximum debt mill levy of 55.277 mills, subject to adjustment, as defined in the Service Plan, for repayment of such debt. The Service Plan authorizes the repayment of debt from the following sources: ad valorem taxes and other sources permitted by law, including fees, rates, tolls, penalties, charges, and special assessments.

The Boards of Directors (each a “Board” or the “Boards”) govern the Districts. Board members are elected for four-year terms. During election years, the Districts must provide the Call for Nominations to the electors of the Districts noting the Board seats up for election. If an owner or resident would like to run for Board seat up for election, he or she must submit a self-nomination form to the Designated Election Official by the applicable deadline as provided in the Call for Nominations. When a vacancy occurs on the Boards between elections, an owner or resident may contact the Districts in which he or she resides and request to submit a letter of interest to be appointed to the applicable Board. When an individual is appointed to the applicable Board, the term for that appointment runs to the next regular election.

To qualify as a director of a district, a person must be an “eligible elector” which is defined as a registered voter of Colorado and either: (1) a resident of the district, or (2) the owner (or the spouse or civil union partner of the owner) of taxable real or personal property located within the district. A person who is under contract to purchase taxable property and is obligated to pay taxes prior to closing is also considered an “owner.”

The Districts file their annual reports for the prior year with the Town of Firestone.