The Castle Pines North Metro District provides the information on this page as a public service for the people of Castle Pines North.

Dear Castle Pines North Metro District Residents:

On February 5, 2010, the City of Castle Pines North (the City) filed with the Douglas County District Court (District Court) an Application for Dissolution of the Castle Pines North Metro District (Metro District). In its Application for
Dissolution, the City suggests that it intends to become the designated provider for all public services the Metro District currently provides. These include drinking water, acquiring renewable water sources, wastewater, storm water, and parks and open space-related services.

The City’s Application for Dissolution is unnecessary, costly for all parties, and legally obligates the Metro District to prepare and file, in District Court, a Dissolution Plan.

In last month’s Castle Pines Connection, we informed you that until and unless City Council withdraws its Application for Dissolution, we would continue the process of developing the most fiscally responsible Dissolution Plan that:

• assures the people, families, neighborhoods and businesses of Castle Pines North (CPN) access to safe, reliable services at the lowest possible cost; and

• enables the CPN community’s renewable water resources plan, without stalling that plan’s timely execution, and without negatively impacting your Metro District’s Standard & Poor’s AA-Bond rating.

We also informed you that we retained StepWise Advisors to conduct a thorough, independent cost/benefit and comparative analyses of various dissolution/integration partners and options.

Because the CPN Metro District Board (the Board) has had no indication from City Council that it intends to drop its Application for Dissolution, we would like to inform you that we have issued a letter of inquiry to each of the following five possible CPN Metro District dissolution/integration partners:

• Castle Pines Metropolitan District (The Village);

• Centennial (Highlands Ranch) Water
and Sanitation District;

• City of Castle Pines North;

• Parker Water and Sanitation District; and

• Town of Castle Rock.

The Metro District hopes to meet this month with senior representatives of each of the above entities to assess their practical interest in providing water-related services to the people of CPN.

The Board intends that its cost/benefit and comparative analyses of multiple water service providers and the various dissolution/integration options will serve as the basis for a final Dissolution Plan that the Metro District intends to file in District Court.

We believe taking these steps will enable the CPN community to make the wisest and most responsible decisions about if, and how, to dissolve/integrate its Metro District based upon relevant and independently verifiable data and conservative financial principles.

In closing, please know the District Court, and ultimately CPN voters, may accept or reject the proposed Dissolution Plan. In other words, the proposed Dissolution Plan may or may not result in Metro District dissolution.

As always, please email us with your questions and comments via our website at www.cpnmd.org.

Sincerely,

Castle Pines North Metropolitan District Board of Directors