DRAFT LEYDEN ROCK METROPOLITAN DISTRICT NO. 10 FINANCIAL STATEMENTS JUNE 30, 2017

Transcription

1 FINANCIAL STATEMENTS JUNE 30, 2017

2 Special Debt Service Capital General Revenue Projects Total ASSETS Cash - Checking 502, ,761 16,731 2, ,657 UMB A Bond Fund , ,674 UMB A Debt Service Reserve - - 2,802,685-2,802,685 Fund UMB A Surplus Fund , ,190 TOTAL ASSETS 502, ,761 4,663,280 2,044 5,618,206 LIABILITIES AND FUND BALANCES CURRENT LIABILITIES Accounts payable 86, ,282 6, ,708 TOTAL LIABILITIES 86, ,282 6, ,708 FUND BALANCES Fund balances 415, ,479 4,657,280 2,044 5,390,498 TOTAL LIABILITIES AND BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2017 FUND BALANCES 502, ,761 4,663,280 2,044 5,618,206 These financial statements should be read only in connection with the accompanying accountant's compilation report. 0

3 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE SIX MONTHS ENDED JUNE 30, 2017 REVENUES Annual Budget Year to Date Actual Variance Property taxes 442, ,218 (150,462) Specific ownership tax 35,400 16,255 (19,145) Interest income Other revenue TOTAL REVENUES 478, ,287 (168,818) EXPENDITURES Accounting 50,000 42,083 7,917 Auditing 25,000-25,000 County Treasurer's fee 6,640 4,383 2,257 Insurance and bonds 33,000 24,453 8,547 Legal services 80,000 60,750 19,250 Miscellaneous 1, Tract conveyance Engineering 10,000-10,000 Dissolution of Districts 10,000-10,000 Maintenance of District assets 4,000-4,000 Contingency 4,733-4,733 TOTAL EXPENDITURES 225, ,993 93,180 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 252, ,294 (75,638) OTHER FINANCING SOURCES (USES) GENERAL FUND TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 252, ,294 (75,638) FUND BALANCES - BEGINNING 238, ,401 (1) FUND BALANCES - ENDING 491, ,695 (75,639) These financial statements should be read only in connection with the accompanying accountant's compilation report. 1

4 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE SIX MONTHS ENDED JUNE 30, 2017 FEE OPERATIONS FUND SPECIAL REVENUE FUND Annual Budget Year to Date Actual Variance REVENUES Operations fee Interest income TOTAL REVENUES 514, , (93,446) , ,418 (93,022) 4,000 22, ,004 68,460 82,236 37,000 21,000 3,000 4, , ,990 1,000 14,500 11,500 2,000 6,740 1,800 3,800 74,980 4,917 10,000 1,100 10,933 75,664 20,720 36,146 31,335 5,439 44,770 59, ,094 2,796 10,171 23, , ,000 11,167 45,340 47,740 46,090 5,665 15,561 3,000 4,000 97, , ,406 11,500 2,000 3,944 1,800 (6,371) 51,039 (134) 1,436 10,000 1, , , ,904 (418,487) 91, , (418,487) 91, , , ,063 (97,435) D R AF Administration costs Utilities - gas and electric Utilities - trash removal Utilities - water Facilities management Facilities management - transfer fee Landscape irrigation repairs Landscape replacement Landscape lighting Landscape open space clean-up/native weed control Landscape maintenance Landscape sod repair Snow removal Pool maintenance Pool supplies Pool chemicals Pool repairs and maintenance Clubhouse maintenance Clubhouse social activities Miscellaneous Postage, printing, copies Landscape - capital outlay Utilities - Telephone/Wi-Fi/Cable T EXPENDITURES TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES - BEGINNING FUND BALANCES - ENDING (106,789) 315, ,268 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances governmental funds have been omitted. 4

5 SUPPLEMENTARY INFORMATION

6 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE SIX MONTHS ENDED JUNE 30, 2017 REVENUES DEBT SERVICE FUND Annual Budget Year to Date Actual Variance Property taxes 1,416, ,096 (481,479) Specific ownership tax 113,300 52,026 (61,274) Interest income 24,000 17,653 (6,347) TOTAL REVENUES 1,553,875 1,004,775 (549,100) EXPENDITURES County Treasurer's fee 21,250 14,028 7,222 Paying agent fees 6,000 6,000 - Bnd interest Series 2016A 1,733, , ,578 Contingency 9,594-9,594 TOTAL EXPENDITURES 1,770, , ,394 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (216,125) 118, ,294 OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (216,125) 118, ,294 FUND BALANCES - BEGINNING 4,496,697 4,539,111 42,414 FUND BALANCES - ENDING 4,280,572 4,657, ,708 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances governmental funds have been omitted. 6

7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE SIX MONTHS ENDED JUNE 30, 2017 REVENUES CAPITAL PROJECTS FUND Annual Budget Year to Date Actual Variance TOTAL REVENUES EXPENDITURES TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES - BEGINNING - 2,044 2,044 FUND BALANCES - ENDING - 2,044 2,044 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances - governmental funds have been omitted. 7

8 2017 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 the County of Jefferson on January 5, 2012, and is governed pursuant to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The District was established to provide financing for the operations and maintenance and design, acquisition, installation, construction and completion of public improvements and services, including water, sanitation, street, safety protection, park and recreation, transportation, fire protection, security, television relay and translation and mosquito control improvements and services. The District provides covenant control and was organized in conjunction with nine other related Districts Leyden Rock Metropolitan District Nos. 1, 2, 3, 4, 5, 6, 7, 8, and 9. District No. 10 serves as the Operating and Financing District which will pay all vendors, issue debt, levy ad valorem taxes on taxable properties within each District and assess fees, rates and other charges as authorized by law. The District s service area is located entirely within the City of Arvada, Jefferson County, Colorado. The Districts are not authorized to plan for, design, acquire, construct, install, relocate, redevelop, finance, operate or maintain fire protection facilities or services, unless such facilities and services are provided pursuant to an intergovernmental agreement with the City. The Districts are not authorized to plan for, design acquire, construct, install, relocate, redevelop, finance, operate or maintain television relay and translation facilities and services, other than for the installation of conduit as part of a street construction project, unless such facilities and services are provided pursuant to an intergovernmental agreement with the City. On November 1, 2011, the District s voters authorized total indebtedness of 80,000,000 for each of the above listed facilities, 80,000,000 for intergovernmental agreements and 80,000,000 for refunding of debt. Collectively, the Districts shall not issue debt over the amount of 80,000,000. Additionally, the maximum debt mill levy is mills, which shall not be imposed for longer than 40 years from the first year the debt service mill levy is imposed unless a refunding of the Debt has been voted upon. The election also approved an annual increase in property taxes of 5,000,000 without limitation of rate, to pay the District s operation and maintenance costs. 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 C.R.S 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. The calculation of the taxes levied is displayed on page 3 at the adopted mill levy of for operations and for debt service. 7

9 2017 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Revenues - (continued) Operations Fee The District will collect a fee of per year from homeowners of the District to pay for the District s costs of operations, payable on January 1 of each year or in quarterly installments. In addition, the District receives as a transfer fee from each new homeowner. Specific Ownership 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 8% of the property taxes collected. Interest Income Interest earned on the District s available funds has been estimated based on an average interest rate of approximately 0.50%. Administrative and Operating Expenditures Expenditures Operating and administrative expenditures include the estimated services necessary to maintain the District s administrative viability such as legal, management, accounting, insurance and meeting expense. Estimated expenditures related to landscaping and utilities were also included the General Fund budget. County Treasurer s Fee County Treasurer s collection fees have been computed at 1.5% of property taxes. Debt Service The District has budgeted for payments as required on its Series 2016 Bonds. Debt and Leases The District issued its 2016A Senior Bonds and the 2016B Subordinate Bonds on July 14, 2016, in the amounts of 36,355,000 and 5,585,000, respectively. The proceeds from the sale of the 2016A Senior Bonds were used to: (i) pay the costs of refunding the 2013 Loan; (ii) finance a portion of the public improvements related to the Development; (iii) provide capitalized interest on the 2016A Senior Bonds; (iv) fund the Senior Reserve Fund; and (v) pay the costs of issuing the 2016A Senior Bonds. Proceeds of the 2016B Subordinate Bonds will be used to: (i) finance a portion of the public improvements related to the Development; and (ii) pay the costs of issuing the 2016B Subordinate Bonds. The District issued, simultaneous with the issuance of the 2016A and 2016B Bonds, its Junior Subordinate Limited Tax General Obligation Bonds, Series 2016C (Taxable), in the aggregate principal amount of 6,475,000 with such obligations having a lien which is subordinate and junior to the lien of the 2016A Senior Bonds. 8

10 2017 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases - (continued) The 2016C Bonds bear interest at 8.0%. The 2016A Senior Bonds bear interest at 4.0%-5.0%, payable semi-annually on June 1 and December 1, beginning on December 1, Annual mandatory sinking fund principal payments are due on December 1, beginning on December 1, The 2016A Senior Bonds mature on December 1, 2045, and are subject to optional redemption on December 1, 2021, and on any date thereafter, upon payment of par and accrued interest, at the following price. Redemption Date Redemption Premium December 1, 2021 through November 30, % December 1, 2022 through November 30, % December 1, 2023 through November 30, % December 1, 2024 and thereafter 100% The 2016B Subordinate Bonds bear interest at the rate of 7.25% per annum and payable annually on December 15, but only to the extent of available Subordinate Pledged Revenue. The 2016B Subordinate Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest. In the event any amounts due and owing on the 2016B Subordinate Bonds remain outstanding on December 15, 2054, such amounts shall be extinguished and no longer be due and outstanding. Unpaid interest on the 2016B Subordinate Bonds compounds annually on each December 15. The 2016B Subordinate Bonds are subject to redemption prior to maturity, at the option of the District, on December 15, 2021, and on any date thereafter, upon payment of par and accrued interest, at the following price. Redemption Date Redemption Premium December 15, 2021 through December 14, % December 15, 2022 through December 14, % December 15, 2023 through December 14, % December 15, 2024 and thereafter 100% The 2016A Senior Bonds are secured by and payable solely from and to the extent of the Senior Pledged Revenue, which includes monies derived from the following, net of costs of collection: (i) the Senior Required Mill Levy; (ii) the portion of the Specific Ownership Tax which is collected as a result of the imposition of the Senior Required Mill Levy and the 2016 Debt Service Mill Levy; (iii) amounts collected from the 2016 Debt Service Mill Levy: and (iv) any other legally available amounts that the District may designate held under the Senior Indenture. Prior to the date the Senior Debt to Assessed Ratio is equal to 50% or less, Senior Pledged Revenue that is not needed to pay debt service on the 2016A Senior Bonds and to fill up the Senior Reserve Fund to the Reserve Requirement amount of 2,796,750 in any year will be deposited to and held in the Senior Surplus Fund, up to the Maximum Surplus Amount of 3,635,500. Upon reaching 50% Senior Debt to Assessed, the Senior Surplus Fund will be terminated and any moneys therein applied to any legal purpose of the District. The District has acknowledged that State Law places certain restrictions on the use of money derived from the Senior Required Mill Levy. The 2016B Subordinate Bonds are payable solely from and to the extent of the Subordinate Pledged Revenue, which includes monies derived from the following, net of costs of collection: (i) the Required Subordinate Mill Levy; (ii) the portion of the Specific Ownership Tax which is collected as a result of the imposition of the Required Subordinate Mill Levy; (iii) the Excess Senior Pledged Revenue; and (iv) any other legally available amounts that the District may designate held under the Subordinate Indenture. 10

11 2017 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases - (continued) Excess Senior Pledged Revenue is defined as, generally, revenue available for payment of the 2016B Subordinate Bonds that is first pledged to the 2016A Senior Bonds. The current debt service schedule is attached for the Series 2016A Bonds. Debt service schedules for the 2016B and 2016C Bonds are not provided as the Bonds are cash flow bonds and the timing of the payments are unknown. The District has no operating or capital leases. Emergency Reserves The District has provided for an Emergency Reserve equal to at least 3% of fiscal year spending for 2017, as defined under the TABOR Amendment. This information is an integral part of the accompanying budget. 10

12 SCHEDULE OF DEBT SERVICE CASH REQUIREMENTS TO MATURITY 36,355,000 Series 2016A General Obligation Bonds Interest Rate: - Interest Payable June 1 and December 1 Principal Payable December 1 245, , , , , , , , , , , ,000 1,035,000 1,130,000 1,180,000 1,280,000 1,345,000 1,465,000 1,535,000 1,665,000 1,750,000 1,890,000 1,985,000 2,135,000 2,240,000 2,410,000 5,325,000 36,355,000 Interest 1,733,156 1,733,156 1,733,156 1,723,356 1,705,556 1,685,556 1,662,956 1,639,556 1,613,356 1,586,156 1,553,125 1,518,781 1,480,719 1,441,125 1,397,594 1,352,313 1,302,875 1,251,250 1,187,250 1,120,000 1,046, , , , , , , , ,250 36,585,744 Total AF D R Rate T Principal December 31, 1,733,156 1,733,156 1,978,156 2,168,356 2,205,556 2,250,556 2,247,956 2,294,556 2,293,356 2,341,156 2,338,125 2,388,781 2,385,719 2,436,125 2,432,594 2,482,313 2,482,875 2,531,250 2,532,250 2,585,000 2,581,750 2,635,000 2,636,750 2,689,250 2,689,750 2,740,500 2,738,750 2,796,750 5,591,250 72,940,744 No assurance is provided on theseshould financialbestatements. all required the government-wide This financial information read onlysubstantially in connection with thedisclosures, accompanying accounant's financial statements, and the statement of revenues, expenditures and changes in fund balances governmental funds have been omitted. compilation report and summary of 12 significant assumptions. 1110

13 Schedule of Cash Position June 30, 2017 Updated as of August 30, 2017 General Debt Service SRF Capital Total Fund Fund Fee Operations Fund Projects Fund Funds 1st Bank - Checking Balance as of 6/30/ , , , , , Subsequent activities: 7/7/2017 SCM refund - - 2, , /7/2017 Operations Fee's - - 9, , /10/2017 Property/SO tax 144, , , /13/2017 Operations Fee's - - 7, , /14/2017 Xcel Energy - - (2,038.18) - (2,038.18) 7/14/2017 Citi of Arvada - - (195.23) - (195.23) 7/14/2017 Excel - - (2,038.18) - (2,038.18) 7/17/2017 Operations Fee's - - 3, , /18/2017 Republic - - (1,304.29) - (1,304.29) 7/19/2017 Xcel Energy - - (441.47) - (441.47) 7/20/2017 Xcel Energy - - (184.12) - (184.12) 7/21/2017 Operations Fee's - - 5, , /26/2017 Operations Fee's - - 4, , /31/2017 Checks #'s (14,127.37) - (98,630.14) - (112,757.51) 8/10/2017 Property/SO tax 5, , , Checks #'s (20,954.32) (6,000.00) (27,505.09) - (54,459.41) Anticipated transfer to UMB - (481,210.16) - - (481,210.16) Interfund transfer - 2, (2,043.87) - Anticipated Balance 617, , , , UMB A Bond Fund Balance as of 6/30/ , , Subsequent activities: 7/3/2017 Transfer from Reserve Fund - 5, , /31/2017 Interest income Anticipated transfer from checking - 481, , Anticipated Balance - 1,344, ,344, UMB A Surplus Fund Balance as of 6/30/ , , Subsequent activities: 7/31/2017 Interest income Anticipated Balance - 988, , UMB A Debt Service Reserve Fund Balance as of 6/30/2017-2,802, ,802, Subsequent activities: 7/3/2017 Transfer to Bond Fund - (5,857.74) - - (5,857.74) 7/31/2017 Interest income - 2, , Anticipated Balance - 2,799, ,799, Total Anticipated Balances 617, ,143, , ,111, This supplementary information should be read only in connection with the accompanying accountant's compilation report. 8

14 LEYDEN ROCK METROPOLITAN DISTRICT NO. 5 Property Taxes Reconciliation 2017 Current Year Prior Year Delinquent Specific Net % of Total Property Total % of Total Property Property Taxes, Rebates Ownership Treasurer's Due to Amount Taxes Received Cash Taxes Received Taxes and Abatements Taxes Interest Fees County Received Monthly Y-T-D Received Monthly Y-T-D January 11, , (176.26) - 24, % 0.63% 1, % 0.34% February 711, , (10,668.30) - 713, % 38.88% 50, % 26.08% March 33, , (502.30) - 48, % 40.69% 6, % 28.64% April 360, , (5,400.64) - 367, % 60.05% 58, % 58.45% May 110, , (1,663.92) - 123, % 66.01% 36, % 76.97% June 602, , (9,043.49) - 608, % 98.43% 44, % 99.40% July 5, , (89.38) - 21, % 98.75% 2, % 99.78% August % 98.75% 1, % 99.78% September % 98.75% 1, % 99.64% October % 98.75% 1, % 99.70% November % 98.75% 1, % 99.70% December % 98.75% 1, % 99.73% 1,835, , (27,544.29) - 1,907, % 98.75% 206, % 99.73% Taxes Levied % of Levied Property Taxes Collected % Collected to Amount Levied Property Tax General Fund , % 437, % Debt Service Fund ,416, % 1,398, % ,859, % 1,835, % Specific Ownership Tax General Fund 35, % 23, % Debt Service Fund 113, % 75, % 148, % 99, % Treasurer's Fees General Fund 6, % 6, % Debt Service Fund 21, % 20, % 27, % 27, %

15 Leyden Rock Metropolitan District No. 10 Check List All Bank Accounts June 20, August 30, 2017 Check Number Check Date Payee Amount Vendor Checks Check count = /20/17 CenturyLink /20/17 Christopher Salazar /20/17 City of Arvada 4, /20/17 CliftonLarsonAllen LLP 5, /20/17 Environmental Landworks Company, Inc. 56, /20/17 Helping Hand, Ltd. 1, /20/17 Stillwater Community Mgmt, LLC 35, /20/17 White Bear Ankele Tanaka & Waldron 8, /20/17 Xcel Energy /20/17 YMCA of Metropolitan Denver /07/17 CenturyLink /07/17 CliftonLarsonAllen LLP 13, /07/17 Fun Productions 5, /07/17 Helping Hand, Ltd. 2, /07/17 Poop 911 2, /07/17 Stillwater Community Mgmt, LLC 6, /07/17 Todd Kirkman /07/17 UMB Bank, N.A. 6, /07/17 Weed Wranglers, Inc. 6, /07/17 White Bear Ankele Tanaka & Waldron 7, /07/17 Xcel Energy 4, Vendor Check Total 167, Check List Total 167, Printed by on 08/30/17 at 4:27 PM Page 0