General Information About the District
| Flying Horse Metropolitan District No 2 (FHMD2) and Flying Horse Metropolitan District No 3 (FHMD3) are quasi-municipal corporation and political subdivision of the State of Colorado, was organized by order and decree of the District Court for Adams County in December 2005, and are governed pursuant to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The Districts operate under a service plan approved by Colorado Springs (the City) in 2004. The District’s service area boundaries encompass 1,968 home lots within the Flying Horse Community, the Flying Horse resort and golf course and certain commercial properties on the eastern and southern boundaries of the Districts.
In 2005, FHMD2 issued bonds totaling $13.2 million to finance the construction and development of the neighborhood infrastructure (e.g. streets, curbs, sidewalks, water and electric lines, sewer lines, storm drainage, detention pond, perimeter fencing, park and open space landscaping, etc). With a few exceptions, all public infrastructure assets are owned and maintained by either Colorado Springs (e.g. streets) or certain public utility companies. The open spaces and storm water detention ponds are owned and maintained by FHMD1.
FHMD2 refinanced its 2005 bonds and issued new debt in 2013 with the issuance of $24.2 million in new bonds. FHMD2 refinanced its 2013 bonds and issued new debt in 2020 with the issuance of $52.0 million in new bonds.
In 2005, FHMD3 issued bonds totaling $5.9 million to finance the construction and development of the neighborhood infrastructure (e.g. streets, curbs, sidewalks, water and electric lines, sewer lines, storm drainage, detention pond, perimeter fencing, park and open space landscaping, etc).
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With a few exceptions, all public infrastructure assets are owned and maintained by either Colorado Springs (e.g. streets) or certain public utility companies. The open spaces and storm water detention ponds are owned and maintained by FHMD1.
FHMD3 refinanced its 2005 bonds and issued new debt in 2019 with the issuance of $17.8 million in new bonds.
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May 2023 was the first time the majority of FHMD2's and FHMD3's 5-member board was comprised of directors who do not have conflicts of interest serving on the board and are unrelated to the land developer (Classic Homes which is wholly owned by Elite Properties of America, Inc).
District Revenue Sources
In order to fund the repayment of its bond debt and to provide neighborhood services to District residents, the District generates revenue from the following sources:
Property Taxes: Each year, the Districts assesses property taxes on the homeowners living within the District. Property tax assessments is the Districts' primary source of revenue and currently comprises approximately 90% of the Districts' total annual revenue. To fund the general operations of the Districts, the Districts may collect up to $xx million annually. This limit can be raised only if additional voter approval is obtained.
To fund the Districts' annual debt repayments, the Districts may adjust the debt portion of the mill levy rate each year to generate an amount sufficient to fund the annual principle and interest payments due on the bonds.
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State Tax Subsidies: Each year, the Districts receive a "specific ownership tax" subsidy from the State of Colorado. The State funds this subsidy from its collection of annual vehicle registration fee taxes paid by owners of Colorado-registered vehicles. The subsidy is paid out in the form of a matching contribution to the District and is calculated as a percentage of the total property taxes assessed by the Districts. The State establishes the rate each year for matching contributions. A historic trend of the matching rates set by the State is provided in Exhibit 1.
For the past few years, this subsidy has comprised approximately 10% of the Districts' total annual revenue. |
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Interest Income: State laws restrict the types of funds in which the Districts may invest its cash. The Districts' investment income is an insignificant source of revenue to the Districts due to the low interest rates offered on investment funds available to metropolitan district.
District Contractors
Click here to lean more about the Districts' contractors.
Bond Debt
Click here to learn more about the Districts' bond debt.