In accordance with Section 32-104.5(3)(X), C.R.S., the following general explanation in plain, nontechnical language, is provided.  This information is intended to be read in conjunction with all applicable legal requirements, governing documents, agreements, resolutions, and determinations of the Board of Directors of the District. 

A metropolitan district is a special district that provides any two or more of the following services: 

• Fire protection; 
• Mosquito control; 
• Parks and recreation; 
• Safety protection; 
• Sanitation; 
• Solid waste disposal facilities or collection and transportation of solid waste; 
• Street improvement; 
• Television relay and translation; 
• Transportation; and 
• Water.

The Lakes at Centerra Metropolitan District Nos. 1 -3 (“District Nos. 1-3”) consolidated into The Lakes at Centerra Consolidated Metropolitan District (the “District”), effective March 18, 2026, pursuant to Section 32-1-601 et seq., C.R.S. of the Special District Act, and after the District Court for Larimer County, Colorado issued an Order and Decree of Consolidation on March 1, 2026.  The District remains subject to the Consolidated Service Plan for The Lakes at Centerra Metropolitan District Nos. 1, 2 and 3 (the “Service Plan”).

In accordance with the Service Plan, the District may provide the following public improvements and services: 

• Sanitation;  
• Water; 
• Streets; 
• Traffic and Safety Controls; 
• Parks and Recreation; 
• Transportation; 
• Television Relay and Translator; 
• Mosquito and Pest Control; 
• Security; and 
• Covenant Enforcement. 

District Nos. 1-3 undertook the construction of the following categories of public improvements prior to consolidation: 

• Wastewater System; 
• Storm Drainage; 
• Portable Water System; 
• Non-Potable Irrigation Water Systems; 
• Street System and Traffic Safety; and 
• Park and Recreation. 

The District will provide the following ongoing services: operation and maintenance services for the above listed public improvements that are not dedicated to the City of Loveland.   

In accordance with the Service Plan, the total amount of debt the District can incur to provide and pay for public infrastructure is as follows: 

• The maximum amount of Debt which may be incurred by the District, in 2007 dollars, shall be $50,000,000 (“Debt Limit”).   District Nos. 1-3 issued all Debt allowed under the Service Plan prior to consolidation.

In accordance with the  Service Plan, the following revenue may be used to pay for Debt:   

• All bonds issued may be payable from any and all legally available revenues of the District (and pre-consolidation, all legally available revenues of District Nos. 1-3), including general ad valorem taxes to be imposed upon all taxable property within the District. 

In accordance with the  Service Plan, the maximum mill levy the District may assess to pay for Debt is as follows: 

• The maximum mill levy the District may impose for the payment of Debt, operations and maintenance expenses shall be 70 mills (“the “Mill Levy Cap”).  The Mill Levy Cap shall be subject to adjustment if the laws of the State change with respect to the assessment of property for taxation purposes, the ratio for determining assessed valuation changes, or other similar changes occur.  In any of these events, the Mill Levy Cap shall be automatically adjusted so that the collective tax liability of property owners within the District neither increases nor decreases as a result of any such changes, thereby maintaining a constant level of tax receipts of the District and overall tax payments from property owners.   

Residents within the District may serve on the Board of Directors of the District if they are eligible electors of the District.  A resident is an eligible elector of the District if the resident lives within the boundaries of the District and is registered to vote in Colorado.