TrailMark at Chatfield Homeowners Association - TrailMark Metropolitan District

Effective January 1, 2006
The City of Littleton transferred some maintenance responsibilities in TrailMark to South Suburban Parks and Recreation. This transfer includes all open space, park, athletic field and trails. TrailMark Metro. District will only be responsible for maintaining the two (2) reservoirs, three (3) detention ponds, some fencing and the collection of money for the bond payments.

Monthly Meetings
The TrailMark Metropolitan District holds regular meetings on the third Tuesday of every other month, beginning February, at 6:30 p.m., at the offices of Shea Homes, 9135 Ridgeline Boulevard, Highlands Ranch, Colorado. Agendas, Notice of Regular Meeting, and Notices of Special Meetings are posted on the TrailMark Bulletin Board. The Board's regular meeting dates may also be obtained from Toni Burns, District Manager, at 303-987-0835 or via email: tburns@sdmsi.com.

GENERAL INFORMATION AND DISCLOSURE SHEET - (Updated September 2007)
This General Information Sheet has been prepared by the TrailMark Metropolitan District (the ADistrict@) to provide prospective residents and property owners with general information regarding the District and its operations. This Information Sheet is intended to provide an overview of pertinent District information and does not purport to be comprehensive or definitive. You are encouraged to independently confirm the accuracy and completeness of all statements contained herein.

Organization of District.
The District is a quasi-municipal corporation and a political subdivision of the State of Colorado. In 1993, by order of the District Court of Jefferson County, Colorado, the District was formed under the name of Chatfield Green Metropolitan District, which name changed to TrailMark Metropolitan District in 1999. The District is wholly contained within the City of Littleton and covers a total area of approximately 345 acres. The District's boundaries are the same as those of the TrailMark Development (the ADevelopment@).

District Board of Directors.
The District is governed by a five member Board of Directors. Board members are elected to staggered four-year terms. Anyone who resides within the District or who owns taxable property within the boundaries of the District, and is a registered voter in Colorado, is eligible to serve on the Board of Directors.

District Powers.
In accordance with the Colorado Special District Act, the District operates pursuant to a service plan. The District filed an Amended and Restated Service Plan (the AService Plan@), dated October 1998, with the City of Littleton, which Service Plan was approved in late 1998. According to the Service Plan, the major purpose of the District is to finance and construct certain public improvements, including but not limited to water, sanitation, street, safety protection, and park and recreation improvements. More specifically, the District has designed, financed and constructed sewer and water improvements, storm drainage facilities, roadways, trails, parks, and fencing. The District also has made improvements to portions of Wadsworth Boulevard adjacent to the Development. Where appropriate, the District has conveyed the improvements (with the exception of two reservoirs, three detention ponds, and some fencing) to the City of Littleton, South Suburban Park and Recreation District, or Ken-Caryl Ranch Water and Sanitation District for ongoing operation and maintenance by these jurisdictions.

District Obligations.
The District currently has the following outstanding obligations:

Obligation	Outstanding Amount
Limited Tax General Obligation Refunding Bonds, Series 2003, in the principal amount of $8,334,977.40	$6,869,977
Reimbursement Agreement by and between the District and the J.F. Shea Co., Inc.	$482,579.18
Project Funding Agreement	$634,484.06

1-Principal amount outstanding as of December 31, 2006

2-Principal and Interest amount outstanding as of December 31, 2006

3- Principal and Interest amount outstanding as of December 31, 2006

Taxes and Fees Imposed on Properties within District.
The District's primary source of revenue is from property taxes; secondary sources of revenue include operation and maintenance fees imposed on properties within the District and revenues from specific ownership taxes collected on motor vehicles. The property taxes are paid annually by all owners of property within the District. Along with other taxing entities, the District certifies a mill levy by December 15th of each year which determines the taxes paid by each property owner in the following year. A part of the total mill levy is certified for operations and maintenance of the District. Adjustments to the operating mill levy will occur as necessary to assure that revenue is available to provide adequate services to the community. The remainder of the mill levy certified is for repayment of the Bonds as discussed above. Pursuant to limitations set forth in the District's Service Plan, the total mill levy for the District can never exceed 55 mills, except for adjustments due to changes in the statutory or constitutional method of assessing property tax or in the assessment ratio. Because of changes in 2003 to the state wide assessment ratio, the mill levy maximum was adjusted to 66.027 mills, effective the 2004 budget year.

By way of example, for tax year 2007, the residential assessment ratio is 7.96% (which assessment ratio is subject to annual change by the state legislature). If a house is determined by the County assessor to have an actual value (approximately the same as market value) of $300,000, the taxes to be paid in 2007 will be calculated on $23,880 of assessed value (7.96% of $300,000 actual value = $23,880 assessed value). To calculate property taxes due for a property the number of mills (one mill = 1/1000 or .001) is multiplied times the assessed value. Using the District's 66.027 mill levy, the following calculation illustrates the amount in District taxes to be paid for $300,000 of actual value: $300,000 x .0796 x .066027 = $1,576.72. Thus, in addition to other property taxes imposed by other overlapping jurisdictions, such as the City of Littleton, the South Suburban Park and Recreation District, etc., a house valued at $300,000 in 2006 will be subject to District property taxes in the amount of $1,576.72.

The District's other source of revenue, an operation and maintenance fee, has been established pursuant to a resolution adopted by the District's Board. This fee is expected to cover the costs associated with the District's operations and maintenance of various public improvements, including but not limited to regional improvements, drainage and water storage improvements, and certain wetlands and reservoirs. The District has imposed the operation and maintenance fee on all subdivided lots within the District. For single family residential lots, the current fee is $15 per month to be paid on a semi-annual basis. The fee for multi-family units is 75% of that imposed on single family lots, or $11.25/month.

Services Provided by Other Entities.
Because the District is located within the City of Littleton, fire and police services are provided by the City. The District is also located within the boundaries of South Suburban Park and Recreation District (ASouth Suburban@). In accordance with zoning plan approved by the City, the District dedicated approximately 100 acres of land for open space and 12 acres of land for a school/park site, which have been subsequently conveyed to either the City or South Suburban. Pursuant to an agreement between the District and South Suburban, the District constructed or acquired approximately $1,400,000 of regional recreational improvements. In 2006, the District transferred the operation and maintenance of those facilities to South Suburban, and the operation and maintenance of the common areas (other than the previously noted exceptions) to the TrailMark Master Homeowner's Association.

Ken-Caryl Ranch Water and Sanitation District (AKen-Caryl@) provides sanitary sewer service to properties within the District in accordance with the provisions of an Inclusion Agreement.

The water supply for District residents is provided by the City of Littleton through the City's entitlement to the Denver Water Board's system. The District financed and constructed necessary improvements to connect to conduits into the Denver Water Board's system and has conveyed such water improvements to the City of Littleton.

Other Obligations.

Denver Botanic Gardens.
Given the Development's proximity to land owned by the Denver Botanic Gardens, the District agreed, pursuant to an agreement between the District, the Developer, The TrailMark Master Homeowner's Association and the Denver Botanic Gardens, Inc., to take measures to ensure that the Development does not adversely impact water quality with respect to the Denver Botanic Garden's parcel. The District and/or Developer, among other things, constructed the stormwater drainage improvements, and the District is responsible for the maintenance, testing, and reporting of those improvements, which include the two reservoirs (see below), three ponds, and connecting spillways.

Fairview Reservoirs.
There are two reservoirs within the District's boundaries: Fairview Reservoir #1 and Fairview Reservoir #2 (also known as the "Beaver Pond").

Fairview Reservoir #1 is a "working" irrigation reservoir, in the sense that its primary purpose is to store water owned by the District and others. The District, Centennial Water and Sanitation District and Denver Botanic Gardens share ownership of water rights related to Fairview Reservoir #1. The District also shares in the responsibility for operating and maintaining this reservoir. The water level in the reservoir is subject to fluctuations up and down, because of annual and seasonal fluctuations in the amount of water available, and depending on withdrawal from storage by owners of the water. It is the District's objective to maintain as high a water level as possible in Fairview Reservoir #1, subject to seasonal and annual availability of water and to the rights of both Centennial Water and Sanitation District and Denver Botanic Gardens to utilize their entitlements of water stored in the reservoir.

Fairview Reservoir #2 (the "Beaver Pond") is in actuality no longer a reservoir, but rather a detention pond, which is fed exclusively by stormwater and irrigation runoff. As such, the District has little control over the amount of water received in the Beaver Pond, but the District does have the ability to release water from the pond in the event of a significant storm event. The District is solely responsible for operating and maintaining this pond.

Additional Information.
This Information Sheet has been provided to you in an effort to answer anticipated questions raised by residents and property owners within the District's boundaries. If you have additional questions, please contact Toni Burns, District Manager, either by phone (303-987-0835) or via email (tburns@sdmsi.com).