Flying Horse Metropolitan District No. 3 Ballot Question 6D

A yes vote on Flying Horse Metropolitan District No. 3 Ballot Question 6D would be a vote in favor of Flying Horse Metropolitan District No. 2’s debt authorization being increased, without raising taxes, by amounts sufficient to fund its obligations under the “pledge agreement” dated September 11, 2024, between Flying Horse Metropolitan District No. 1 (“District 1”), Flying Horse Metropolitan District No. 2 (“District 2”) and Flying Horse Metropolitan District No. 3 (“District 3”).

A no vote would be a vote against this happening.

That pledge agreement, along with other related settlement agreements that do not contain additional multiple-year fiscal financial obligations, shall resolve all disputes between the Districts and, in summary, accomplish the following:

• All the litigation between the districts is settled
• Except for the pledge outlined below, District 1’s claims for over
  $17 million in debt obligation from or against Districts 2 and 3 are
  eliminated
• In order to facilitate the settlement between the Districts and to allow for
  the transition from Developer control to homeowner control of Districts 2
  and 3, Districts 2 and 3 pledge to make annual payments to District 1 in
  an amount equivalent to 3 mills (estimated to be approximately
  $305,000 for District 2 for property tax year 2023, payable in 2024) for a
  period of 15 years beginning in 2024.
• No tax increase will be levied against homeowners related to the fulfillment of District 2’s obligations under such pledge agreement
• District 1 will convey ownership of public facilities to Districts 2 and 3,
  who shall assume responsibility for the operation and maintenance of
  such public facilities, except for areas operated and maintained by the
  Flying Horse Homeowners’ Association (the “HOA”), which shall remain
  the responsibility of the HOA
• Districts 2 and 3 shall have full autonomy from District 1