LETTER OF BUDGET TRANSMITTAL

Transcription

1 LETTER OF BUDGET TRANSMITTAL Date: To: January3_,2019 Division of Local Government 1313 Sherman Street, Room 521 Denver, Colorado Attached are the 2019 budget and budget message for LEWIS POINTE METROPOLITAN DISTRICT in Adams County, Colorado, submitted pursuant to Section , C.R.S. This budget was adopted on November 14, If there are any questions on the budget, please contact: Kim Herman, District Manager 8390 E. Crescent Pkwy, Ste 300 Greenwood Village, CO Telephone number: I, Kim Herman, District Manager of the Lewis Pointe Metropolitan District, hereby certify that the attached is a true and correct copy of the 2019 budget. By:

2 CERTIFIED COPY OF RESOLUTION BUDGET RESOLUTION (2019) STATE OF COLORADO ) ) COUNTY OF ADAMS ) At the special meeting of the Board of Directors of Lewis Pointe Metropolitan District, City of Thornton, County of Adams, Colorado, held at 4:00 PM on Wednesday, November 14, 2018, at 5877 E 120th Avenue, Thornton, Colorado 80602, there were present: Jill Luchs Allen Pelkey Dawn Jimerson Mike D. Pekas Also present was Dianne Miller of Miller & Associates Law Offices, LLC. Ms. Miller reported that, prior to the meeting, legal counsel had notified each of the directors of the date, time and place of this meeting and the purpose for which it was called. She further reported that this is a special meeting of the Board of Directors of the District and that the notice of the meeting was posted in at three (3) places within the boundaries of the District and at the Adams County Clerk and Recorder's Office, and to the best of her knowledge, remains posted to the date of this meeting.

3 NOTICE AS TO PROPOSED 2019 BUDGET

4 NOTICE OF PROPOSED 2019 BUDGET HEARING NOTICE TO AMEND 2018 BUDGET HEARING OF LEWIS POINTE METROPOLITAN DISTRICT NOTICE IS HEREBY GIVEN that proposed 2019 budget has been submitted to the Board of Directors (the "Board") of the Lewis Pointe Metropolitan District (the "District") for the ensuing year 2019; a copy of such proposed budget have been filed in the office of the District's manager, CliftonLarsonAllen LLP, 8390 E. Crescent Parkway, Suite 300, Greenwood Village, Colorado, where same is open for public inspection; and that such proposed budget will be considered at the special meeting of the Board to be held at Anythink Wright Farms Library, 5877 E. 120th Avenue, Thornton, Colorado on November 14,2018 at 4:00 p.m. NOTICE IS FURTHER GIVEN that the Board will also consider amending the District's 2018 budget at this meeting; a copy of such proposed budget amendment has been filed in the offices of the District's manager, where same is open for public inspection. Any elector within the District may, at any time prior to the final adoption of the 2019 budget or 2018 budget amendment, inspect the budget and file or register any objections thereto. The meeting is open to the public. BY ORDER OF THE BOARD OF DIRECTORS OF THE LEWIS POINTE METROPOLITAN DISTRICT Is! Kim Herman, Manager Publish In: Northglenn-Thomton Sentinel Publish On: October 18, 2018

5 Thereupon, Director Lu hs introduced and moved the adoption of the following Resolution: RESOLUTION A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET AND APPROPRIATING SUMS OF MONEY TO EACH FUND IN THE AMOUNTS AND FOR THE PURPOSES SET FORTH HEREIN FOR THE LEWIS PO[NTE METROPOLITAN DISTRICT, CITY OF THORNTON, ADAMS COUNTY, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANTJARY, 2019 AND ENDING ON THE LAST DAY OF DECEMBER, WHEREAS, the Board of Directors (the "Board") of the Lewis Pointe Metropolitan District (the "District") has authorized its treasurer and legal counsel to prepare and submit a proposed budget to said governing body at the proper time; and WHEREAS, the proposed 2019 budget has been submitted to the Board for its consideration; and WHEREAS, upon due and proper notice, posted in accordance with Colorado law, said proposed budget ws open for inspection by the public at a designated place, a public hearing was held at 4:00 PM on Wednesday, November 14, 2018, and interested electors were given the opportunity to file or register any objections to said proposed budget; and WHEREAS, the budget being adopted by the Board has been prepared based on the best information available to the Board regarding the effects of Article X, Section 20 of the Colorado Constitution; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE LEWIS POINTE METROPOLITAN DISTRICT, ADAMS COUNTY, COLORADO, AS FOLLOWS:

6 Section 1. Summary of 2019 Revenues and 2019 Expenditures. That the estimated revenues and expenditures for each fund for fiscal year 2019, as more specifically set forth in the budget attached hereto, are accepted and approved. Section 2. Adoption of Budget. That the budget as submitted, amended and attached hereto and incorporated herein is approved and adopted as the budget of the District for fiscal year Section Levy of General Property Taxes. That the foregoing budget indicates that the amount of money necessary to balance the budget for the General Fund for operating expenses is $237,976, and that the 2018 valuation for assessment, as certified by the Adams County Assessor, is $11,958,610. That for the purposes of meeting all general operating expenses of the District during the 2019 budget year, there is hereby levied a tax of mills upon each dollar of the total valuation of assessment of all taxable property within the District for the year Section Levy of Debt Retirement Expenses. That the foregoing budget indicates that the amount of money necessary to balance the budget for the Debt Service Fund for debt retirement expense is $661,036 and that the 2018 valuation for assessment, as certified by the Adams County Assessor, is $11,958,610. That for the purposes of meeting all debt retirement expenses of the District during the 2019 budget year, there is hereby levied a tax of mills upon each dollar of the total valuation of assessment of all taxable property within the District for the year SectionS. Certification to Board of County Commissioners. That the attorney for the District is hereby authorized and directed to immediately certify to the Adams County Board of County Commissioners, the mill levy for the District hereinabove determined and set. That said certification shall be in substantially the following form:

7 357 County Tax Entity Code DOLA LGIDISID / CERTIFICATION OF TAX LEVIES for NON-SCHOOL Governments TO: County Commissioners' of Adams Colorado. On behalf of the the of the Lewis Pointe Metr Board of Directors Lewis Pointe Metr District District (taxing (governing Hereby officially certifies the following mills to be levied against the taxing entity's GROSS $11,958,610 assessed valuation of: (GRoSs' assessed valuation Line 2 of the Certification of valuation Form DLG 57E) Note: If the assessor certified anet assessed valuation (AV) different than the GROSS AV due to a Tax Increment Financing (TIF) AreaF the tax levies must be $ 11,958,610 calculated using the NET AV. The taxing entity's total (NET 0 assessed valuation, Line 4 of the Certification of Valuation Form DLG 57) property tax revenue will be derived from the null levy USE VALUE FROM FtNAL CERTIFtCATION OF VALUATION PROVIDED multiplied against the NET assessed valuation of: BY ASSESSOR NO LATER THAN DECEMBER10 Submitted: 12/07/2018 for budget/fiscal year 2019 (no later than Dec. IS) (mm/dd/yyyy) (yyyy) PURPOSE (see end notes for definitions and examples) LEVY 2 RE VENUE 2 1. General Operating Bxpenses' mills $237, <Minus> Temporary General Property Tax Credit' Temporary Mill Levy Rate Reduction' > mills $ < > SUBTOTAL FOR GENERAL OPERATING: mills $237,976 (local 3. General Obligation Bonds and Interest' 4. Contractual Obligati ons K 5. Capital Exp en dit ures L 6. R e f un d s /Ab a t emen t s M 7. Other" (specify): mills mills mills mills mills mills $661,036 $ r Sum of General Operating Contact person: Daytime (print) Jason Carroll phone: (303 ) Signed: Title: Accountant for the District Include one copy of this tax entity's complete4 mi when filing the local government's budget by Janumy 31st, per CR5., with the Division ollocal Government IDLG) Room Sherman Street. Denver, CD Questions? Call DLG att3o3) 'If the taxing entity's boundaries include more than one county, you must certify the levies to each county. Use a separate form for each county and certify the same levies uniformly to each county per Article X, Section 3 of the Colorado Constitution. 2 Levies must be rounded to three decimal places and revenue must be calculated from the total NET assessed valuation (Line 4 of Form DLGS7 on the County Assessor's FINAL certification of valuation). Page I of 4 DLG 70 (Rev.6/l6)

8 CERTIFICATION OF TAX LEVIES, continued THIS SECTION APPLIES TO TITLE 32, ARTICLE I SPECIAL DISTRICTS THAT LEVY TAXES FOR PAYMENT OF GENERAL OBLIGATION DEBT ( C.R.S.). Taxing entities that are Special Districts or Subdistricts of Special Districts must certify separate mill levies and revenues to the Board of County Commissioners, one each for the funding requirements of each debt ( , C.R.S.) Use additional pages as necessary. The Special District's or Subdistrict's total levies for general obligation bonds and total levies for contractual obligations should be recorded on Page 1, Lines 3 and 4 respectively. CERTIFY A SEPARATE MILL LEVY FOR EACH BOND OR CONTRACT: BONDS 3 : Purpose of Issue: Series: Date of Issue: Coupon Rate: Maturity Date: Levy: Revenue: General Obligation Bonds (Limited Tax Convertible to Unlimited Tax) Series 2015A June 1, % December 1, Purpose of Issue: Series: Date of Issue: Coupon Rate: Maturity Date: Levy: Revenue: Public Infrastructure Series 2017B Suborc March 23, 2017 December 15, $194,531 bonds 3. Purpose of Issue: Series: Date of Issue: Coupon Rate: Maturity Date: Levy: Revenue: Public Infrastructure Series 2017C Junior Lien bonds March 23, % December 15, CONTRACTS": 4. Purpose of Contract: Title: Date: Principal Amount: Maturity Date: Levy: Revenue: Use multiple copies of this page as necessary to separately report all bond and contractual obligations per , CR5. Page 2 of 4 DLG 70 (Rev.6/I6)

9 Section 6. Appropriations. That the amounts set forth as expenditures and balances remaining, as specifically allocated in the budget attached hereto, are hereby appropriated from the revenue of each fund, to each fund, for the purposes stated and no other. Section 7. Budget Certification. That the budget shall be certified by the Secretary/Treasurer of the District, and made a part of the public records of the District. The foregoing Resolution was seconded by Director? \ Q ti k RESOLUTION APPROVED AND ADOPTED ON NOVEMBER 14, LEWIS PO[NTE METROPOLITAN DISTRICT ATTEST: By: Jill ipre sident Dawn Jimerson, Secretary

10 STATE OF COLORADO COUNTY OF ADAMS LEWIS POINTE METROPOLITAN DISTRICT I, Dawn Jimerson, hereby certi' that I am a director and the duly elected and qualified Secretary of the Lewis Pointe Metropolitan District (the "District"), and that the foregoing constitutes a true and correct copy of the record of proceedings of the Board of Directors of said District adopted at a meeting of the Board of Directors of the District held at 4:00 PM on Wednesday, November 14, 2018, at 5877 E 120th Aye, Thornton, Colorado as recorded in the official record of the proceedings of the District, insofar as said proceedings relate to the budget hearing for fiscal year 2019; that said proceedings were duly had and taken; that the meeting was duly held; and that the persons were present at the meeting as therein shown. IN WITNESS WHEREOF, I have hereunto subscribed my name on November 14,2018. Dawn Jimerson, Secretary

11 ACKNOWLEDGEMENT OF NOTICE AND APPROVAL OF RECORD OF PROCEEDINGS We, the undersigned members of the Board of Directors of the Lewis Pointe Metropolitan District, Adams County, Colorado, do hereby acknowledge receipt of proper notice of the meeting of the Board held at 4:00 PM on Wednesday, November 14, 2018, at 5877 E 120 Avenue, Thornton, Colorado 80602, informing of the date, time and place of the meeting and the purpose for which it was called, and we do hereby approve said record of proceedings and the actions taken by the Board as stated therein.

12 EXHIBIT A BUDGET DOCUMENT & BUDGET MESSAGE

13 Sn S hr CliftonLarsonAtten Accountant's Compilation Report CliffonLarsonAilen LLP CLAconnect. corn Board of Directors Lewis Pointe Metropolitan District Management is responsible for the accompanying budget of revenues, expenditures, and fund balances of Lewis Pointe Metropolitan District for the year ending December 31, 2019, including the estimate of comparative information for the year ending December, 31, 2018, and the actual comparative information for the year ended December 31, 2017, in the format prescribed by Colorado Revised Statutes (C.R.S.) and the related summary of significant assumptions in accordance with guidelines for the presentation of a budget established by the American Institute of Certified Public Accountants (AICPA). We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the budget nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on the accompanying budget. The budgeted results may not be achieved as there will usually be differences between the budgeted and actual results, because events and circumstances frequently do not occur as expected, and these differences may be material. We assume no responsibility to update this report for events and circumstances occurring after the date of this report. We draw attention to the summary of significant assumptions which describe that the budget is presented in accordance with the requirements of C.R.S , and is not intended to be a presentation in accordance with accounting principles generally accepted in the United States of America. We are not independent with respect to the Lewis Pointe Metropolitan District. Greenwood Village, Colorado December 30, 2018 I NTERNATIONAL Pn ir çnxet rrwtr ci 4a rftecmtice

14 LEWIS POINTE METROPOLITAN DISTRICT SUMMARY 2019 BUDGET WITH 2017 ACTUAL AND 2018 ESTIMATED For the Years Ended and Ending December31, ACTUAL ESTIMATED BUDGET BEGINNING FUND BALANCES REVENUES Property taxes Specific ownership tax Interest income Developer advance Other revenue District Assessments Builder Assessments Facilities fees Bond proceeds 2017B Bond proceeds 2017C Total revenues $ 1,958,416 $ 5,308,063 $ 1,546, , , ,012 14,245 69,670 53,941 43,626 65,428 18,100 45,000 3,487,776 72,000 6, ,009-92, , ,990 69,615 38,850 6, ,000 62,000-3,252, , ,592,183 5,022,549 1,281,793 fltae$::siil Total funds available EXPENDITURES General Fund Debt Service Fund Capital Projects Fund Total expenditures 18,936 27,144 6,000 6,569,535 10,357,756 2,834, , , , , , , ,885 7,500,000-1,242,536 8,783,733 1,333,594 TRANSFERS OUT Total expenditures and transfers out requiring appropriation ENDING FUND BALANCES EMERGENCY RESERVE AVAILABLE FOR OPERATIONS REQUIRED RESERVE A BONDS SURPLUS FUND A BONDS SPECIAL REVENUE RESERVE TOTAL RESERVE 18,936 27,144 6,000 1,261,472 8,810,877 1,339,594 $ 5,308,063 $ 1,546,879 $ 1,495,078 $ 5,900 $ 11,900 $ 14,800 21,977 11,533 2, , , , , , , ,000 $ 1,411,807 $ 1,495,233 $ 1,495,078 This financial information should be read only in connection with the accompanying accountant's compilation report and summary of significant assumptions. 2

15 LEWIS POINTE METROPOLITAN DISTRICT PROPERTY TAX SUMMARY INFORMATION 2019 BUDGET WITH 2017 ACTUALAND 2018 ESTIMATED For the Years Ended and Ending December31, 12/30/18 ACTUAL ESTIMATED BUDGET [ ASSESSED VALUATION Residential Commercial Vacant land Personal property Certified Assessed Value $ 2,000,760 $ 4,397,190 $ 9,802, ,070 3,899,120 1,831,720 84, , ,040 2,591,810 8,426,060 11,958,610 $ 2,591,810 $ 8,426,060 $ 11,958,610 MILL LEVY General Debt Service Total mill levy PROPERTY TAXES General Debt Service Levied property taxes Budgeted property taxes $ 25,918 $ 167,679 $ 237, , , , , , ,012 $ 155,509 $ 633,446 $ 899,012 BUDGETED PROPERTY TAXES General Debt Service $ 25,918 $ 167,679 $ 237, , , ,036 $ 155,509 $ 633,446 $ 899,012 This financial information should be read only in connection with the accompanying accountant's compilation report and summary of significant assumptions. 3

16 LE4S POINTE METROPOLITAN DISTRICT GENERAL FUND 2019 BUDGET WITH 2017 ACTUAL AND 2019 ESTIMATED For the Years Ended and Ending December /lB ACTUAL ESTIMATED BUDGET BEGINNING FUND BALANCES REVENUES Property taxes Specific ownership tax Interest income Developer advance Other revenue District Assessments Builder Assessments Total revenues Total funds available EXPENDITURES General and administrative Accounting Auditing Billing services Budgeting Contingency County Treasurers fee Design review District management Dues and licenses Election expense Insurance and bonds Legal services Meeting expense Miscellaneous Taxes Operations and maintenance Covenant enforcement Decorations Electricity Fence maintenance/repairs Fence staining Irrigation repairs Landscaping improvements Landscape maintenance Mulch Refuse Snow plowing and sweeping Trash removal Trees Utilities Water Water/sewer Web hosting Winter watering Total expenditures TRANSFERS OUT Transfers to other fund 49,719 $ 27,877 $ 23,433 25, , ,976 2,375 18,440 14, ,000-72,000 6,118 7,328-92, ,370 23l,900 69,615 38,650 6, , , , , , ,258 38,100 40,000 4,600 4,100 5,000 3,465 11, , , ,515 3,570 2,169 10,450 12,000 33,528 21,392 24, ,139 1,300-1,838 2,790 3,308 8,000 21,761 16,538 20, , , , , ,000-20, ,000 67,575 96,714 90, ,000 20, ,000 15,000-50,362 57, ,000 54, , ,000 4, , , , , ,250 10,351 27, Total expenditures and transfers out requiring appropriation 261, , ,250 ENDING FUND BALANCES $ 27,877 $ 23,433 $ 17,278 EMERGENCYRESERVE $ 5,900 $ 11,900 $ 14,800 AVAILABLE FOR OPERATIONS 21,977 11,533 2,478 TOTAL RESERVE $ 27,877 $ 23,433 $ This financial information should be read only in connection with the accompanying accountant's compilation report and summary of significant assumptions. 4

17 LEWIS POINTE METROPOLITAN DISTRICT DEBTSERVICE FUND 2019 BUDGET WITH 2017 ACTUAL AND 2018 ESTIMATED For the Years Ended and Ending December31, 12/30/18 ACTUAL ESTIMATED BUDGET BEGINNING FUND BALANCES $ 1,763,933 $ 1,828,911 $ 1,523,446 REVENUES Property taxes 129, , ,036 Specific ownership tax ,230 39,662 Interest income 16,968 28,270 18,000 Facilities fees 378,000 62,000 - Total revenues 536, , ,698 TRANSFERS IN Transfers from other funds Total funds available EXPENDITURES Debt Service Contingency County Treasurers fee Paying agent fees Series 2015A Bond interest Series 2017B Bond interest Total expenditures Total expenditures and transfers out requiring appropriation ENDING FUND BALANCES REQUIRED RESERVE A BONDS SURPLUS FUND A BONDS TOTAL RESERVE 8, ,308,942 2,436,178 2,242,144-5,389 4,584 1,946 6,987 9,916 3,000 4,000 4, , , , , , , , , , , ,344 $ 1,828,911 $ 1,523,446 $ 1,471,800 $ 694,300 $ 894,300 $ 694, , , ,500 $ 1,383,930 $ 1,471,800 $ 1,471,800 This financial information should be read only in connection with the accompanying accountant's compilation report and summary of significant assumptions. 5

18 LEWIS POINTE METROPOLITAN DISTRICT CAPITAL PROJECTS FUND 2019 BUDGET WITH 2017 ACTUAL AND 2018 ESTIMATED For the Years Ended and Ending December31, 12/30/18 ACTUAL ESTIMATED BUDGET BEGINNING FUND BALANCES REVENUES Interest income Developer advance Other revenue Bond proceeds 201 7B Bond proceeds 201 7C Total revenues TRANSFERS IN Transfers from other funds Total funds available EXPENDITURES General and Administrative Capital Projects Accounting Bond Discount Cost of issuance Engineering Legal services Lower Holly Repay developer advance Contingency Capital outlay Total expenditures TRANSFERS OUT Transfers to other fund Total expenditures and transfers out requiring appropriation $ 145,764 $ 3,451,275 $ - 26,630 37, ,487, ,681-3,252, , ,814,630 4,021,581-10,351 27,144-3,970,745 7,500, , , , ,185 16,698-6, , ,487, , ,487, ,885 7,500,000-8, ,470 7,500,000 - $ 3,451,275 $ - $ - This financial information should be read only in connection with the accompanying accountant's compilation report and summary of significant assumptions. 6

19 LEWIS POINTE METROPOLITAN DISTRICT SPECIAL REVENUE FUND 2019 BUDGET WITH 2017 ACTUAL AND 2018 ESTIMATED For the Years Ended and Ending December 31, 12/30/18 ACTUAL ESTIMATED BUDGET j BEGINNING FUND BALANCES $ REVENUES Total revenues TRANSFERS IN Transfers from other funds Total funds available - - 6,000 EXPENDITURES Total expenditures and transfers out requiring appropriation ENDING FUND BALANCES SPECIAL REVENUE RESERVE TOTAL RESERVE $ -. $ - $ 6,000 $ - $ - $ 6,000 $ - $ - $ 6,000 This financial information should be read only in connection with the accompanying accountants compilation report and summary of significant assumptions. 7

20 LEWIS POINTE METROPOLITAN DISTRICT 2019 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The District, a quasi-municipal corporation and a political subdivision of the State of Colorado, was organized by order and decree of the District Court for Adams County on January 3, 2009, and is governed pursuant to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The District's service area is located entirely within the City of Thornton, Adams County, Colorado. The District was established to provide financing for the construction, installation, and operation of public improvements, including streets, water, storm, regional sanitary sewer facilities, safety protection, and parks and recreation facilities. At its formation election held on November 4, 2008, the District's voters authorized general obligation indebtedness to be increased by $11,700,000 for the above listed purposes to a total repayment cost of $95,940,000. The District's voters also authorized general obligation indebtedness to be increased by $500,000 to a total repayment cost of $4,100,000 for operating and maintenance expenses incurred by the District. Additionally, the District's electors authorized the District to collect, retain and spend all revenue annually, other than ad valorem taxes, without regard to limitations under TABOR. The Districts' service plan limits the total debt issuance of the project to $11,700,000. The Maximum Debt Mill Levy the District is permitted to impose is mills for any Debt which exceeds fifty percent of the District's assessed valuation. For the portion of any Debt which is equal to or less than fifty percent of the District's assessed valuation, either on the date of issuance or at any time thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is necessary to pay the Debt service on such Debt, without limitation of rate. The District has no employees and all administrative functions are contracted. The District prepares its budget on the modified accrual basis of accounting in accordance with the requirements of Colorado Revised Statutes CR using its best estimates as of the date of the budget hearing. These estimates are based on expected conditions and its expected course of actions. The assumptions disclosed herein are those that the District believes are significant to the budget. There will usually be differences between the budget and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Property Taxes Revenues Property taxes are levied by the District's Board of Directors. The levy is based on assessed valuations determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners to put the tax lien on the individual properties as of January 1 of the following year. The County Treasurer collects the determined taxes during the ensuing calendar year. The taxes are payable by April or, if in equal installments, at the taxpayer's election, in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. The County Treasurer remits the taxes collected monthly to the District. 8

21 LEWIS POINTE METROPOLITAN DISTRICT 2019 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Revenues - (continued) The method of calculating assessed valuation of residential assessment rates in the State of Colorado changed to 7.20% from 7.96% for property tax years on April 17, 2017 with a report submitted to the State Board of Equalization. Accordingly, the mill levy has been adjusted upward to reflect the change assessed value calculation. The debt service mill levy increased to from mills and the general fund mill levy increased to from mills. The calculation of the taxes levied is displayed on the Property Tax Summary page of the budget using the adopted mill levy imposed by the District. Specific Ownership Taxes Specific ownership taxes are set by the State and collected by the County Treasurer, primarily on vehicle licensing within the County as a whole, The specific ownership taxes are allocated by the County Treasurer to all taxing entities within the County. The budget assumes that the District's share will be equal to approximately 6% of the property taxes collected. Net Investment Income Interest earned on the District's available funds has been estimated based on an average interest rate of approximately 1.5%. Developer Advance The District is in the development stage. As such, the operating and administrative expenditures will be mainly funded by the Developer. Developer advances are recorded as revenue for budget purposes with an obligation for future repayment when the District is financially able to reimburse the Developer from bond proceeds and other legally available revenue. Facilities Fees The District imposes a Facilities Fee of $2,000 on each single-family residential unit The fees are payable by homebuilders at the time of issuance of building permits. The revenue from the fees is pledged for payment of bonds or any other indebtedness of the District. The Developer has guaranteed the payment of facility fees on an annual basis according to the schedule below. * Estimate

22 LEWIS POINTE METROPOLITAN DISTRICT 2019 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Administrative and Operating Expenditures Expenditures Operating and administrative expenditures include the estimated services necessary to maintain the District's administrative viability such as legal, accounting, insurance, banking, meeting expense and other administrative expenses. County Treasurer's Fees County Treasurer's fees have been computed at 1.5% of property tax collections. Debt Service Principal and interest payments in 2018 are provided based on the debt amortization schedule from the Series 2015A General Obligation Bonds (discussed under Debt and Leases). Repayment of Developer Advances In accordance with the Operations Funding and Reimbursement Agreement and the Infrastructure Acquisition Agreement, the District has documented claims for cash advances and expenditures made on behalf of the District by the Developer and acquisition of assets from the Developer or related parties. The District is to reimburse the Developer at such time that the District has funds not otherwise required for debt service or operations of the District, At December 31, 2018, the outstanding and unreimbursed contingent liability for these advances or acquisitions totaled $606,407 (principal and interest). Debt and Leases The District issued $7,775,000 of General Obligation Bonds (Limited Tax Convertible to Unlimited Tax) Series 2015A (2015A Bonds) and authorized issuance of $1,775,000 of General Obligation Bonds (Subordinate Limited Tax) Series 2015B (2015B Bonds) dated June 1, 2015 for the purpose of paying project costs, paying capitalized interest on the bonds, funding the Reserve Fund, paying bond issuance costs, and repayment of Developer advances. The 2015A bonds bear interest at the rate of 6.00% and are payable semiannually on each June and December 1, commencing on December 1, The 2015A bonds are subject redemption prior to maturity at the option of the District on December 1, 2020 and any date thereafter upon payment of par and accrued interest thereon without redemption premium. The 2015A bonds are also subject to a mandatory sinking fund redemption commencing on December 1, The 2015A bonds mature on December 31, The 2015B bonds bear interest at the rate of 7.00% and are payable semiannually on each June and December 15th commencing on December 15, 2015, to the extent surplus revenues are available. The 2015B bonds are subject to redemption prior to maturity at the option of the District upon payment of par and accrued interest thereon, without redemption premium. The 2015B bonds mature December 15, The 2015A and 201 SB Bonds are secured by and payable from the pledged revenues, consisting of revenues attributable to net property tax revenues, capital fees, specific ownership tax revenues, all facility fees payable under the Facility Fee Guaranty Agreement, and any other legally available revenues of the District. 10

23 LEWIS POINTE METROPOLITAN DISTRICT 2019 BUDGET SUM MARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases - (continued) In conjunction with the offering of the Series 2017B and 2017C Bonds, discussed below, the District has elected to terminate the 2015B Subordinate Indenture and has not nor will not issue any bonds pursuant to the 201 SB agreements. The District issued the 2017B Subordinate Bonds and Junior Lien Bonds on March 23, 2017, in the respective amounts of $ and $536,000. Proceeds from the sale of the 2017B Subordinate Bonds will be used for the purposes of (i) reimbursing the costs of the acquisition, construction, and installation of certain public infrastructure; and (ü) paying the costs of issuing the 2017B Subordinate Bonds and the 2017C Junior Lien Bonds. Proceeds from the sale of the 2017C Junior Lien Bonds will be used for the purposes of acquiring and reimbursing the costs of construction and installation of certain public infrastructure to serve the development. The 2017B Subordinate Bonds are assumed to bear interest at 7.75%, are payable annually on December 15, beginning December 15, 2017, from, and to the extent of, Subordinate Pledged Revenues available, if any, and mature on December 15, The 2017B Subordinate Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal prior to the final maturity date. Unpaid interest on the 2017B Subordinate Bonds compounds annually on each December 15. In the event any amount due and owing on the 2017B Subordinate Bonds remains outstanding on December 15, 2056, such amount shall be deemed discharged and no longer be due and outstanding. The 2017C Junior Lien Bonds are assumed to bear interest at 9.0%, are payable annually on December 15, beginning December 15, 2017, from, and to the extent of, Junior Lien Pledged Revenue available, if any, and mature on December 15, The Junior Lien Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal prior to the final maturity date. Unpaid interest on the Junior Lien Subordinate Bonds compounds annually on each December 15. In the event any amount due and owing on the 2017C Junior Lien Bonds remains outstanding on December 15, 2056, such amount shall be deemed discharged and no longer be due and outstanding. Because the 2017B Subordinate Bonds are also being structured as cash flow bonds and will be secured by the Pledged Revenue on a senior basis to the Junior Lien Bonds, no debt service payments will be made on the Junior Lien Bonds until all 2017B Subordinate Bonds have been paid in full or are no longer outstanding. The 2017B Subordinate Bonds are secured by Subordinate Pledged Revenue on a subordinate basis to the Series 2015A Senior Bonds and any other Senior Obligations. Subordinate Pledged Revenue includes that portion of the Pledged Revenue available and required to be deposited into the Subordinate Bond Fund in accordance with the provisions of the 2017B Subordinate Indenture and any amounts in the 2015A Senior Surplus Fund upon the termination of such fund pursuant to the terms of the 2015A Senior Indenture. Pledged Revenue consists of the following, net of any costs of collection: (a) all Property Tax Revenues; (b) all Specific Ownership Taxes; (c) all Capital Fees; and (d) all Facility Fees payable to the District in accordance with the Facility Fee Guaranty. With respect to the 2017B Subordinate Bonds, Pledged Revenue is required to first be applied to fund amounts required by any Senior Obligation Indenture, as more particularly provided in the 2017B Subordinate Indenture. As a result, after application of the Pledged Revenue to pay Senior Obligations (currently consisting of the 2015A Senior Bonds), Subordinate Pledged Revenue is expected to consist of: (a) property taxes derived from the II

24 LEWIS POINTE METROPOLITAN DISTRICT 2019 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases - (continued) 2017B Subordinate Required Mill Levy; (b) specific ownership taxes attributable to the 2017B Subordinate Required Mill Levy; (c) any revenue from Capital Fees remaining after deduction of any amounts required by a Senior Obligation Indenture; (d) Facility Fees payable to the District in accordance with the Facility Fee Guaranty Agreement remaining after deduction of any amounts required by a Senior Obligation Indenture; and (e) any amounts in the 2015A Senior Surplus Fund upon the termination of such fund pursuant to the terms of the 2015A Senior Indenture. Pledged Revenue that is not needed to pay debt service on the 2015A Bonds in any year will be deposited to and held in the Surplus Fund, up to the Maximum Surplus Amount of 10% of par value of the 201 5A Bonds or $777,550. No debt service payments will be made on the 2017 Bonds until the Series 2015A Surplus Fund balance fully funded. The District has no operating or capital leases. Emergency Reserve Reserves The District has provided for an Emergency Reserve fund equal to at least 3% of fiscal year spending for 2019 as defined under TABOR. Debt Service Reserve The District maintains a Debt Service Reserve in the amount of $694,300 as required with the issuance of the Series 2015A bond& This information is an integral part of the accompanying budget. 12

25 LEWIS POINTE METROPOLITAN DISTRICT SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY DECEMBER 31, 2019 Year Ended December 31 $7,775,000 General Obligation Bonds, Series 2015A Dated June 1,2015 Principal Due Annually December 1 Interest at 6.00%, Due June and December 1 Principal Interest Total $ - $ 5,000 90, , , , , , , , , , , , , , , , , , , , , , ,500 $ 466, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,300 This financial information should be read only in connection with the accompanying accountant's compilation report and the summary of significant assumptions. 13

26 Lewis Pointe Metropolitan District 2017B Subordinate Bonds Balance at Balance at December 31,2017* Additi ons * P a y men t s * December 31,2018* Subordinate Note $ 3,252,000 $ - $ - $ 3,252,000 Accrued interest 165, ,820 (429,856) - Total $ 3417,036 $ 264,820 $ (429,856) $ 3,252,000 Balance at Balance at December 31,2018* Additi ons * P a y men t s * December 31,2019* Subordinate Note Accrued interest $ 3,252,000 $ - $ - $ 3,252, ,344 (285,344) - Total $ 3,252,000 $ 285,344 $ (285,344) $ 3,252,000 * Estimated amounts This financial information should be read only in connection with the accompanying accountant's compilation report and the summary of significant assumptions 14