1. 1 City of Cherry Hills Village BBC Research & Consulting 3773 Cherry Creek N. Drive, Suite 850 phone: 303.321.2547 fax: 303.399.0448 e-mail: frick@bbcresearch.com August 8, 2001 R ECREATION D ISTRICT E XCLUSION A NALYSIS

2. 2 S OUTH S UBURBAN P ARK AND R ECREATION D ISTRICT Formed in 1959, provides parks and trails and recreation $30.0 million annual budget Serves 160,000 residents, 3 counties and 7 cities Cherry Hills Village = 3.7% of District population

3. 3 PARKS AND FACILITIES WITHIN CHV P ARKS AND F ACILITIES W ITHIN C HERRY H ILLS V ILLAGE Blackmer Common   SSD Cherry Hills Elementary   School School/ParkDistrict Dahlia Hollow Park   SSD John Meade Park     SSD Three Pond Park    CHV/SSD Woodie Hollow Park    CHV Multi-Natural PurposeHorseridingOpenWildlife Parks/FacilityBallfieldFieldsAreaOpen SpacePlaygroundViewingOwnership Owns and maintains 4 parks in CHV. Maintains CHV parks and trails within Village. Provides recreational services to CHV residents. South Suburban responsibilities to CHV:

4. 4 S OUTH S UBURBAN O PERATIONAL F UNDING Revenues Property tax revenues (7.84 mill levy, 2000) covers debt service, capital investment and acquisitions (2.41 mills for debt). User fees charged to league and program participants (50% of all revenues) cover most operating expenses. CHV Contribution CHV residents contribute about $1.5 million/year to the District. CHV contains 9.94 percent of the District’s property value.

5. 5 CHV P ER C APITA P ROPERTY T AX C ONTRIBUTION (1995-2000) South Suburban Property Tax Revenue$8,140,031$8,400,329$8,789,956$9,057,371$11,019,140$14,014,954 Cherry Hills Village Contribution$940,044$937,826$916,760$931,453$1,137,602$1,393,227 South Suburban Propulation (non-Cherry Hills Village)135,815138,592141,469144,389147,747150,821 Cherry Hills Village Population6,1856,2486,2686,3025,9585,958 Category199519961997199819992000 (est.) Non-Cherry Hills Per Capita Property Tax Contribution$53.01$53.85$55.65$56.28$66.88$83.69 Cherry Hills Per Capita Property Tax Contribution$151.99$150.10$146.26$147.79$190.94$233.84

6. 6 CHV C ONTRIBUTION TO D ISTRICT (2001-2006) Property Taxes Assessed Valuation, CHV$177,753$186,641$195,973$205,771$216,060$226,863 Assumed Mill Levy, District6.846.846.846.846.846.84 Property Tax Revenues$1,215$1,276$1,340$1,407$1,477$1,551 Additional 1-Mill Levy178187196206216227 Specific Ownership Taxes656769717375 Conservation Trust Fund272829303031 200120022003200420052006 Source: BBC Research & Consulting. (All Figures in Thousands [$)] Total Revenues (000’s)$1,485$1,558$1,634$1,713$1,797$1,885

7. 7 F INANCIAL C OSTS OF W ITHDRAWAL CHV share of District debt service — $400-$600,000/year until 2019 Operating and maintenance expenses of CHV parks and trails — $240,000/year Initial withdrawal expenses — $450,000 Annual reimbursement costs of CHV resident recreation — $105,000/year Acquisition of District assets within CHV — (?$)

8. 8 N ET B ENEFIT TO CHV FROM E XCLUSION (2001-2006) Property Taxes Assessed Valuation, CHV$177,753$186,641$195,973$205,771$216,060$226,863 Assumed Mill Levy, District6.846.846.846.846.846.84 Property Tax Revenues$1,215$1,276$1,340$1,407$1,477$1,551 Additional 1-Mill Levy178187196206216227 Specific Ownership Taxes656769717375 Conservation Trust Fund272829303031 Outlays Debt Obligations to SS District: Outstanding Bonds$411$380$371$371$372 1-Mill Levy Increase$187$187$187$187$187 Operating and Maintenance Costs$240$252$265$278$292 Withdrawal Costs$225$232$0$0$0 Recreation Reimbursements$105$106$106$107$107 Debt Service on Asset Purchases$100$100$100$100$100 200120022003200420052006 (All Figures in Thousands [$)] Total Revenues$1,485$1,558$1,634$1,713$1,797$1,885 (All Figures in Thousands [$)] Total Outlays$1,267$12,56$1,028$1,042$1,057 Net Benefit to CHV$291$378$685$755$828

9. 9 C OSTS AND N ET B ENEFITS FOR C HERRY H ILLS V ILLAGE OF D ISTRICT E XCLUSION 2002200320042005200620072008200920102011201220132014201520162017201820192020 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Operating and Maintenance Costs Withdrawal Costs Recreation Reimbursements Obligation on Bonds 1 Mill Levy Increase Benefit to CHV

10. 10 U NCERTAINTIES IN E XCLUSION Costs of withdrawal. Valuation of District assets within CHV. City operating/maintenance expenses. South Suburban policies regarding non- district residents.

11. 11 H OW W OULD E XCLUSION A FFECT Y OU? City is exploring a recreation reimbursement program (similar program is used in Greenwood Village). Program would be funded by existing revenues from property taxes. Costs to residents would not change. Residents would still have access to South Suburban facilities. Level of service for parks and trails in CHV would improve.

12. 12 D ISTRICT E XCLUSION P ROCESS A Judicial Process — 8-18 Months  Petition  Plan  Hearing Schedule: Tabor-Driven/Mail Ballot  October 12-22 — Ballots mailed  November 6th — Election day Language Requirements  CHV must increase taxes with exclusion caveat  Revenue will be used for specific purposes

13. 13 C ONCLUSIONS Exclusion would offer financial benefit to CHV residents. Recreation services would still be available. Level of service of parks and trails would improve. But, some uncertainties exist.