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

Transcription

1 FINANCIAL STATEMENTS JUNE 30, 2017

2 BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2017 ASSETS Cash Checking UMB 2016A Bond Fund UMB 2016A Debt Service Reserve Fund UMB 2016A Surplus Fund TOTAL ASSETS Debt Service Special Revenue General 502, ,761 16, ,674 2,802,685 Capital Projects 987,190 Total 971, ,674 2,802, , , ,761 4,663,280 5,618,206 86, ,282 6, ,708 LIABILITIES AND FUND BALANCES CURRENT LIABILITIES Accounts payable TOTAL LIABILITIES 86, ,282 6, , , ,479 4,657,280 5,390,498 FUND BALANCES Fund balances TOTAL LIABILITIES AND FUND BALANCES 502, ,761 4,663,280 5,618,206 No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, 2 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 GENERAL FUND Annual Budget Year to Date Actual Variance REVENUES Property taxes Specific ownership tax Interest income Other revenue TOTAL REVENUES 442,680 35, ,218 16, (150,462) (19,145) , ,287 (168,818) Accounting Auditing County Treasurer's fee Insurance and bonds Legal services Miscellaneous Tract conveyance Engineering Dissolution of Districts Maintenance of District assets Contingency 50,000 25,000 6,640 33,000 80,000 1, ,000 10,000 4,000 4,733 42,083 4,383 24,453 60, ,917 25,000 2,257 8,547 19, ,000 10,000 4,000 4,733 TOTAL EXPENDITURES 225, ,993 93, , ,294 (75,638) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 252, ,294 (75,638) FUND BALANCES BEGINNING 238, ,401 (1) EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) FUND BALANCES ENDING 491, ,695 (75,639) No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, 3 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, ,882 (418,487) 91, , , ,063 (97,435) EXPENDITURES 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 cleanup/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/WiFi/Cable 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 governmentwide financial statements, 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 DEBT SERVICE FUND Annual Budget Year to Date Actual Variance REVENUES Property taxes Specific ownership tax Interest income TOTAL REVENUES 1,416, ,300 24, ,096 52,026 17,653 (481,479) (61,274) (6,347) 1,553,875 1,004,775 (549,100) 21,250 6,000 1,733,156 9,594 14,028 6, ,578 7, ,578 9,594 1,770, , ,394 (216,125) 118, ,294 (216,125) 118, ,294 4,496,697 4,539,111 42,414 EXPENDITURES County Treasurer's fee Paying agent fees Bnd interest Series 2016A Contingency 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 4,280,572 4,657, ,708 No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, 6

7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE SIX MONTHS ENDED JUNE 30, 2017 CAPITAL PROJECTS FUND Annual Budget Year to Date Actual Variance REVENUES 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 FUND BALANCES ENDING No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide 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 quasimunicipal 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 Revenues Property Taxes 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. No assurance is provided on these financial statements. Substantially 7 all required disclosures, the governmentwide financial statements, 8

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%. Expenditures Administrative and Operating 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. No assurance is provided on these financial statements. Substantially 8 all required disclosures, the governmentwide financial statements, 9

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 semiannually 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 December 1, 2021 through November 30, 2022 December 1, 2022 through November 30, 2023 December 1, 2023 through November 30, 2024 December 1, 2024 and thereafter Redemption Premium 103% 102% 101% 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 December 15, 2021 through December 14, 2022 December 15, 2022 through December 14, 2023 December 15, 2023 through December 14, 2024 December 15, 2024 and thereafter Redemption Premium 103% 102% 101% 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. No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, 10 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. No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, and the statement of revenues, expenditures changespart in fundofbalances governmental funds have been omitted. This information is anand integral the accompanying budget

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 Principal December 31, , , , , , , , , , , , ,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 Rate 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 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 governmentwide This financial information read onlysubstantially in connection with thedisclosures, accompanying accounant's financial statements, compilation report and summary of 12 significant assumptions. 1110

13 Schedule of Cash Position June 30, 2017 Updated as of August 30, 2017 General Fund 1st Bank Checking Balance as of 6/30/2017 Subsequent activities: 7/7/2017 SCM refund 7/7/2017 Operations Fee's 7/10/2017 Property/SO tax 7/13/2017 Operations Fee's 7/14/2017 Xcel Energy 7/14/2017 Citi of Arvada 7/14/2017 Excel 7/17/2017 Operations Fee's 7/18/2017 Republic 7/19/2017 Xcel Energy 7/20/2017 Xcel Energy 7/21/2017 Operations Fee's 7/26/2017 Operations Fee's 7/31/2017 Checks #'s /10/2017 Property/SO tax Checks #'s Anticipated transfer to UMB Interfund transfer Anticipated Balance UMB 2016A Bond Fund Balance as of 6/30/2017 Subsequent activities: 7/3/2017 Transfer from Reserve Fund 7/31/2017 Interest income Anticipated transfer from checking Anticipated Balance UMB 2016A Surplus Fund Balance as of 6/30/2017 Subsequent activities: 7/31/2017 Interest income Anticipated Balance UMB 2016A Debt Service Reserve Fund Balance as of 6/30/2017 Subsequent activities: 7/3/2017 Transfer to Bond Fund 7/31/2017 Interest income Debt Service Fund 502, , (14,127.37) 5, (20,954.32) 617, , SRF Fee Operations Fund Capital Projects Fund 463, , (6,000.00) (481,210.16) 2, , , , (2,038.18) (195.23) (2,038.18) 3, (1,304.29) (441.47) (184.12) 5, , (98,630.14) (27,505.09) 12, , , , , , , Total Funds (2,043.87) 971, , , , , (2,038.18) (195.23) (2,038.18) 3, (1,304.29) (441.47) (184.12) 5, , (112,757.51) 21, (54,459.41) (481,210.16) 979, , , , ,344, ,344, , , , , ,802, ,802, Anticipated Balance Total Anticipated Balances 617, (5,857.74) 2, ,799, ,143, , (5,857.74) 2, ,799, ,111, No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, and the statement of revenues, expenditures changes with in fund balances governmental have report. been omitted. This supplementary information should be read only and in connection the accompanying accountant's funds compilation 8 13

14 LEYDEN ROCK METROPOLITAN DISTRICT NO. 5 Property Taxes Reconciliation 2017 Current Year Property Taxes January February March April May June July August September October November December Delinquent Taxes, Rebates and Abatements Treasurer's Fees Interest Net Amount Received Due to County % of Total Property Taxes Received Monthly YTD Total Cash Received Prior Year % of Total Property Taxes Received Monthly YTD 11, , , , , , , , , , , , , , (176.26) (10,668.30) (502.30) (5,400.64) (1,663.92) (9,043.49) (89.38) 24, , , , , , , % 38.25% 1.80% 19.36% 5.96% 32.42% 0.31% 0.00% 0.00% 0.00% 0.00% 0.00% 0.63% 38.88% 40.69% 60.05% 66.01% 98.43% 1, , , , , , , , , , , , % 25.75% 2.56% 29.81% 18.53% 22.43% 0.38% 0.00% 0.15% 0.06% 0.00% 0.03% 0.34% 26.08% 28.64% 58.45% 76.97% 99.40% 99.78% 99.78% 99.64% 99.70% 99.70% 99.73% 1,835, , (27,544.29) 1,907, , % 99.73% Taxes Levied Property Tax General Fund Debt Service Fund Specific Ownership Tax General Fund Debt Service Fund % of Levied Property Taxes Collected % Collected to Amount Levied , ,416, ,859, % 76.19% % 437, ,398, ,835, , , , % 76.19% % 23, , , % 66.70% 66.70% 6, , % 76.19% 6, , % 98.76% 27, % 27, % Treasurer's Fees General Fund Debt Service Fund Specific Ownership Taxes No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, 14

15 Leyden Rock Metropolitan District No. 10 Check List All Bank Accounts June 20, 2017 August 30, 2017 Check Number Check Date Payee Amount Vendor Checks CenturyLink Christopher Salazar City of Arvada CliftonLarsonAllen LLP Environmental Landworks Company, Inc. Helping Hand, Ltd. Stillwater Community Mgmt, LLC White Bear Ankele Tanaka & Waldron Xcel Energy YMCA of Metropolitan Denver CenturyLink CliftonLarsonAllen LLP Fun Productions Helping Hand, Ltd. Poop 911 Stillwater Community Mgmt, LLC Todd Kirkman UMB Bank, N.A. Weed Wranglers, Inc. White Bear Ankele Tanaka & Waldron Xcel Energy Vendor Check Total , , , , , , , , , , , , , , , , Check List Total 167, Check count = 21 No assurance is provided on these financial statements. Substantially all required disclosures, the governmentwide financial statements, 15 Printed by on 08/30/17 at 4:27 PM Page 0