Cornerstone Metropolitan District Nos. 1&2

Cornerstone is a 4,800 acre mountain golf course community located in the heart of the San Juan mountains of Colorado.  It has multiple entities that serve the community, including two Metropolitan Districts and an Owners Association.  

Metropolitan districts are local governments that finance public improvements and provide services to promote the health, safety, prosperity, security, and general welfare of the inhabitants of the districts and the people of the state of Colorado. Metropolitan districts fill the gaps that may exist in services that other local governments will not provide, and the services residents may desire. The Cornerstone Metropolitan District Nos. 1-2 (collectively, the “Districts”) may provide the following improvements and services: water, storm sewer, sanitation and wastewater treatment, streets and safety.

District No. 1 is responsible for the operations and maintenance of the public infrastructure within the community, which center around the operation of the roads and domestic water and sanitary sewer.  The District is also responsible for public safety within the community including controlling access into the community.

Water and sanitary sewer operations are funded through the imposition of user fees while the public safety and general operating costs of the District, including road plowing and maintenance, are funded through property taxes received from District No. 2.  Directors may also assess an operations fee if property tax revenue is not sufficient to find current needs. 

District No. 2 is responsible for levying property taxes to fund both the general operations of District No. 1 as well as payments related to the debt issued by District No. 2 to finance the installation costs of the infrastructure.

Pursuant to the Districts’ Consolidated Service Plan, approved by the Counties of Ouray and Montrose on November 1, 2004, as amended by that certain First Amendment to the Consolidated Service Plan dated September 24, 2013 (collectively, the “Service Plan”), the Districts are authorized to issue aggregate debt not to exceed $30,000,000.00 and impose a maximum debt mill levy of 40 mills, subject to adjustment, as defined in the Service Plan, for repayment of such debt. The Service Plan authorizes the repayment of debt from the following sources: ad valorem taxes, and other sources permitted by law, including fees, rates, tolls, penalties and charges.