The District’s Service Plan, which was approved by the City of Colorado Springs on September 06, 2005 - as amended on March 11, 2008 - authorizes the District to issue up to $100 million in debt over a term not to exceed 40 years. The repayment of the District’s debt can exceed 40 years if the majority of the District’s Board are residents of the District and the District’s Board has voted in favor of refunding a part or all of the District’s debt (which must result in a net present value savings). The District’s Amended and Restated Service Plan also establishes a Maximum Mill levy the District is permitted to impose on taxable property within the District for the payment of debt. As long as the District’s total outstanding debt exceeds 50% of the assessed valuation of all taxable property within the District, the Maximum Debt Mill Levy is 50 mills, as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since January 01, 2008. As of January 01, 2008, the residential property assessment ratio was 7.96%. The ratio for 2026 was 6.25%, which caused the District’s Maximum Mill Levy for debt service for 2026 to be 37.482. In 2018, the District issued bonds with a covenant to levy up to a maximum of 30 mills to fund the repayment of debt as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since January 01, 2008. As of January 01, 2008, the residential property assessment ratio was 7.96%. The ratio for 2026 was 6.25%, which caused the District’s Maximum Mill Levy for debt service for 2026 to be 37.482. Series 2018A Bonds On December 11, 2018, the District issued General Obligation Limited Tax (Convertible to Unlimited Tax) Bonds, Series 2018A in the amount of $6,585,000. The Senior Bond was issued as a single term bonds that bears interest at 5.750%, and is payable semi-annually on June 1 and December 1, beginning on December 1, 2019. Annual mandatory sinking fund principal payments are due on December 1, beginning on December 1, 2021. The Senior Bonds mature on December 1, 2048 and may be refinanced without penalty beginning December 01, 2026.

The District’s repayment schedule for its 2018A Bond is as follows:

SERIES 2018B BONDS

On December 11, 2018, the District issued a Subordinate General Obligation Limited Tax Bond, Series 2018B in the amount of $1,011,000. The Subordinate Bond was issued at the rate of 8.00% per annum and is payable annually on December 15, beginning December 15, 2019, from, and to the extent of, Subordinate Pledged Revenue available, if any, and matures on December 15, 2048 and may be refinanced without penalty beginning December 15, 2026. The Subordinate Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Unpaid interest on the Subordinate Bonds compounds annually on each December 15. As of December 31, 2024, accrued unpaid interest on the Series 2018B bonds totaled $504,188.

SERIES 2018C BONDS

On December 11, 2018, the District issued a Junior Lien General Obligation Limited Tax Bond, Series 2018C in the amount of $1,942,000. The Junior Lien Bond's current stated interest rate is 6.00% per annum and is payable annually on December 15, beginning December 15, 2019, from, and to the extent of, Junior Lien Pledged Revenue available, if any, and matures on December 15, 2051 and may be refinanced without penalty beginning December 15, 2026. The Junior Lien Bond is structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Unpaid interest on the Junior Lien Bond compounds annually on each December 15. As of December 31, 2024, accrued unpaid interest on the Series 2018C bonds totaled $1,093,572.

The owner of the Series 2018C Junior Lien Bond is CMH Capital, Inc, an entity under common control and affiliated with Clayton Properties Group II (owner of Oakwood Homes), the Developer. The Junior Lien Bond was issued to CMH Capital, Inc when all directors on the District’s board were employees of CPG2 and had conflicts of interest regarding their service on the District's Board. The net proceeds from the Series 2018A Bond, 2018B Bond and 2018C Bond (totaling approximately $7.5 million) was ultimately remitted to Clayton Properties Group II.