To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Consenting to the Dissolution of Lanterns Metropolitan District Nos. 4 and 5
Body
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Executive Summary
The respective Boards of Directors (the “Boards”) of Lanterns Metropolitan District Nos. 4-5 (“District Nos. 4-5”) have determined it is in the best interests of District Nos. 4-5 to file a Petition for Dissolution with the Douglas County District Court pursuant to Section 32-1-701, et seq., C.R.S.
History of Past Town Council, Boards & Commissions, or Other Discussions
Lanterns Metropolitan District Nos 1-5 (the “Districts”) were approved by resolution of the Town Council of the Town of Castle Rock (the “Town”) on August 21, 2018, and subsequently created by an Order and Decree of the Douglas County District Court
Discussion
According to the Districts’ Service Plan, Lanterns Metropolitan District Nos. 1-3 (“District Nos. 1-3”) are authorized to implement the Districts’ Capital Plan and Financial Plan within their respective boundaries, while District Nos. 4-5 are authorized to provide operations and maintenance services to the Districts’ Service Area. Since the approval of the Service Plan, operations and maintenance services to the Service Area are being provided by two different homeowners associations. as a result, District Nos. 4-5 are not now and do not anticipate in the future providing any operations and maintenance services.
Section 32-1-704(3)(b), C.R.S., provides that a district court may enter an order dissolving a metropolitan district without an election if: (i) the district lies wholly within the corporate limits of a municipality, (ii) the district has no financial obligations or outstanding bonds, and (iii) the district’s board and the governing body of the municipality consent to the dissolution. District Nos. 4-5 lie wholly within the corporate limits of the Town, do not have any outstanding bonds, indebtedness, or other financial obligations, and the Boards have consented to the dissolution. In addition, the dissolution of District Nos. 4-5 will allow their constituents to save the costs associated with their ongoing administration.
Staff Recommendation
Town Staff recommends that the Town Council adopt a resolution consenting to the dissolution of District Nos. 4-5.
Proposed Motion
“I move to approve the resolution as introduced by title.”
Attachments
Resolution
Letter to Castle Rock
Presentation