Re: Continuing Disclosure Undertaking of Snyderville Basin Special Recreation District, Summit County, UT

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1 B A S N PARKS TRAILS RECREATION June 6, 2017 Via electronic submission to Attn: Municipal Disclosure Re: Continuing Disclosure Undertaking of Snyderville Basin Special Recreation District, Summit County, UT To Whom It May Concern: In accordance with the provisions of paragraph (b) (5) (i) (A) of Rule 15c2-I2 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Rule"), Snyderville Basin Special Recreation District (the " District"), hereby files with you the enclosed (i) the Financial Statements of the District for the Fiscal Year Ended December 31, 2016 (the "FS"); and (ii) the Supplemental Continuing Disclosure Memorandum of the District dated July 31, 2017 (the "SCDM"). This letter, the FS, and the SCDM constitute the annual financial information and operating data concerning the District to be fi led in compliance with the District's obligation under that certain agreement entered into in connection with the offering of the following securities described in the fo llowing Official Statements: Securities (CUSIP ) DH9; DJS SS8 EC9; ED7; EES; EF2; EGO S58 EPO; EQ8; ER6; ES4; ET2; EU9; EV7; EWS; EX3; EY I; EZ8; F A2; FBO; FC SS8 FH7; FN4; FP9; FKO; FM SS8 FS3; FTl; FU8; FY6; FW4; FX2; FYO; FZ7; GA I; GB9; GC7; GOS; GE3; GFO; GG8; GH6; GJ2; GK9... Official Statement $10,000,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Recreation Bonds, Series 2008 $S, 12S,OOO Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 20 I 0 $20,000,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Bonds, Series 2011 $3,810,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 2012 $2S,OOO,OOO Snyderville Basin Special Recreation District Summit County, Utah General Obligation Bonds, Series 20 I SA 5715 Trailside Drive Park City, UT c- """'I~ Snyderville Basin Special Recreation:Distr:ict 'f ~ l'::'. t.f.4.1: '

2 Securities (CUSIP ) GN3; GP8; GQ6; GR4; GS2; GTO; GU7 GV5; GW3; GXl; GY9; GZ6.... Official Statement $7,385,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 2015B No event in paragraph (b) (5) (i) (c) of the Rule has occurred that is required to be disclosed with respect to any of the above-described securities. cc: Zions Public Finance, Salt Lake City, UT

3 Supplemental Continuing Disclosure Memorandum Summary of Debt Structure and Financial Information SEC Rule 15c2 12 For Snyderville Basin Special Recreation District, Summit County, Utah Filed with Electronic Municipal Market Access ( EMMA ) emma.msrb.org Submitted and dated as of June 8, 2017 (Submission required July 31, 2017)

4 Table Of Contents GENERAL... 2 Snyderville Basin Special Recreation District, Utah... 2 Contact Persons for the Recreation District... 2 Recreation District Boundary Adjustment... 2 The Issues... 3 $7,385,000 General Obligation Refunding Bonds, Series 2015B... 3 $25,000,000 General Obligation Bonds, Series 2015A... 4 $3,810,000 General Obligation Refunding Bonds, Series $20,000,000 General Obligation Bonds, Series $5,125,000 General Obligation Refunding Bonds, Series $10,000,000 General Obligation Recreation Bonds, Series DEBT STRUCTURE OF THE SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, SUMMIT COUNTY, UTAH Outstanding General Obligation Bonded Indebtedness Debt Service Schedule of Outstanding General Obligation Bonds Other Financial Considerations Overlapping And Underlying General Obligation Debt Debt Ratios General Obligation Legal Debt Limit And Additional Debt Incurring Capacity No Defaulted Obligations FINANCIAL INFORMATION REGARDING THE SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, SUMMIT COUNTY, UTAH Financial Summaries Statement of Net Position Statement of Activities Balance Sheet General Fund Statement of Revenues, Expenditures and Changes in Fund Balances Historical Recreation District Tax Rates Comparative Total Property Tax Rates Within Summit County Taxable, Fair Market and Market Values of Property Historical Summaries of Taxable Values of Property Tax Collection Record Some Of The Largest Taxpayers The Recreation District s General Purpose Financial Statements Page 1

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7 GENERAL Snyderville Basin Special Recreation District, Utah The Snyderville Basin Special Recreation District (the Recreation District ), established in 1986, is located in western Summit County (the County ), approximately 20 miles east of Salt Lake City, Utah. The Recreation District is adjacent to but does not include, Park City, Utah. Several unincorporated communities and Canyons Resort are located within the Recreation District. According to the Recreation District, its current population is estimated to be approximately 19,500. Contact Persons For The Recreation District As of the date of this Supplemental Continuing Disclosure Memorandum, the chief contact persons for the Recreation District concerning the general obligation bonds are: Brian Hanton, District Director, Megan Suhadolc, Business Manager, Snyderville Basin Special Recreation District PO Box (5715 Trailside Dr) Park City UT Ext. 29 f The Recreation District maintains a website that may be accessed at basinrecreation.org.the information available at this website is provided by the Recreation District during its normal operations and has not been reviewed for accuracy or completeness. Such information is not a part of this Supplemental Continuing Disclosure Memorandum. When used herein the terms Fiscal Year[s] or Fiscal Year[s] End[ed][ing] December 31, 20YY shall refer to the year ended or ending on December 31 of the year indicated and beginning on January 1 of the preceding calendar year. Recreation District Boundary Adjustment In a 2001 Annexation Declaration, several parcels of land within the boundaries of the Recreation District were annexed into Park City, Utah (the City ). However, at the time of the 2001 Annexation Declaration, none of the parcel owners filed for de annexation from the Recreation District and consequently the County made no changes to the Recreation District s boundaries. Since 2001, the City annexed areas continued to be included the Recreation District s boundaries and were subject to the tax levies of the Recreation District for both maintenance and operations and general obligation debt including new issue general obligation bonds. These parcels were also subject to the municipal tax rate of the City. In 2012, the City, the County and the Recreation District corrected the tax records of the County by officially removing the parcels of land that were annexed by the City from the Recreation District boundaries. However, because legally voter approved general obligation bonds were issued by the Recreation District, the Utah State Tax Commission created Taxing Entity 6030 or the Original Boundary Taxing Area. The property within this Original Boundary Taxing Area will continue to levy an ad valorem property tax to pay for the outstanding general obligation debt issued prior to 2012, until the general obligation bonds are fully retired (in December 15, 2030). Additionally, the Recreation District cannot levy an operations and maintenance tax levy in the Original Boundary Taxing Area. Any new general obligation debt incurred by the Recreation District, issued after 2012, will not be levied against the Original Boundary Taxing Area, but will be levied against the reduced boundary of the 2

8 Recreation District known as Taxing Entity 4310 or the New Boundary Taxing Area. The Recreation District levies its operations and maintenance tax levy within the New Boundary Taxing Area. The Issues The Recreation District is providing continuing disclosure on the following six issues: 1. $7,385,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 2015B CUSIP numbers on the 2012 are provided below. The $7,385,000 General Obligation Refunding Bonds, Series 2015B (the 2015B Bonds ) were awarded pursuant competitive bidding on February 25,2015, as set forth in the Official Notice of Bond Sale to Janney Montgomery Scott LLC, Philadelphia, Pennsylvania, at a true interest rate of 2.769%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor. Background Information. The 2015B Bonds were issued by the Recreation District as fully registered bonds in book entry form, registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ( DTC ). DTC is currently acting as securities depository for the 2015B Bonds. Principal of and interest on the 2015B Bonds (interest payable June 15 and December 15 of each year) are payable by Zions First National Bank, Corporate Trust Department, Salt Lake City, Utah, as Paying Agent ( Zions Bank ), to the registered owners thereof, currently DTC. Optional Redemption. The 2015B Bonds maturing on and after December 15, 2025 are subject to redemption prior to maturity in whole or in part at the option of the Recreation District on December 15, 2024 or on any date thereafter, from such maturities or parts thereof as shall be selected by the Recreation District at the redemption price of 100% of the principal amount to be redeemed plus accrued interest (if any) thereon to the redemption date. Current Maturity Schedule. Current principal outstanding: $6,475,000 Original issue amount: $7,385,000 Dated: March 11, 2015 Due: December 15, as shown below Due December 15 CUSIP Principal Amount Original Interest Rate Due December 15 CUSIP Principal Amount Original Interest Rate GN3 $ 35, % GU7 $630, % GP8 35, GV5 655, GQ6 540, GW3 685, GR4 565, GX1 700, GS2 580, GY9 715, GT0 605, GZ6 730, Not Bank Qualified. The 2015B Bonds are not bank qualified obligations. 3

9 Security. The 2015B Bonds will be general obligations of the Recreation District, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the Recreation District, fully sufficient to pay the 2015B Bonds as to both principal and interest. 2. $25,000,000 Snyderville Basin Special Recreation District Summit County, Utah General Refunding Bonds, Series 2015A CUSIP numbers on the 2012 are provided below. The $25,000,000 General Obligation Bonds, Series 2015A (the 2015A Bonds ) were awarded pursuant competitive bidding on February 25,2015, as set forth in the Official Notice of Bond Sale to Morgan Stanley & Co. LLC, New York, New York at a true interest rate of 2.372%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor. Background Information. The 2015A Bonds were issued by the Recreation District as fully registered bonds in book entry form, registered in the name of Cede & Co., as nominee for the DTC. DTC is currently acting as securities depository for the 2015A Bonds. Principal of and interest on the 2015A Bonds (interest payable June 15 and December 15 of each year) are payable by Zions Bank, as Paying Agent, to the registered owners thereof, currently DTC. Optional Redemption. The 2015A Bonds maturing on and after December 15, 2025 are subject to redemption prior to maturity in whole or in part at the option of the Recreation District on December 15, 2024 or on any date thereafter, from such maturities or parts thereof as shall be selected by the Recreation District at the redemption price of 100% of the principal amount to be redeemed plus accrued interest (if any) thereon to the redemption date. Current Maturity Schedule. Current principal outstanding: $23,485,000 Original issue amount: $25,000,000 Dated: March 11, 2015 Due: December 15, as shown below Due December 15 CUSIP Principal Amount Original Interest Rate Due December 15 CUSIP Principal Amount Original Interest Rate FS3 $1,035, % GB9 $1,300, % FT1 1,060, GC7 1,335, FU8 1,080, GD5 1,375, FV6 1,110, GE3 1,420, FW4 1,145, GF0 1,460, FX2 1,180, GG8 1,505, FY0 1,200, GH6 1,550, FZ7 1,230, GJ2 1,595, GA1 1,260, GK9 1,645, Not Bank Qualified. The 2015B Bonds are not bank qualified obligations. 4

10 Security. The 2015A Bonds will be general obligations of the Recreation District, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the Recreation District, fully sufficient to pay the 2015ABonds as to both principal and interest 3. $3,810,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 2012 CUSIP numbers on the 2012 are provided below. The $3,810,000 General Obligation Refunding Bonds, Series 2012 (the 2012 Bonds ) were awarded pursuant competitive bidding on October 18, 2012, as set forth in the Official Notice of Bond Sale to FTN Financial Capital Markets, Memphis, Tennessee, at a true interest rate of 1.49%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor. Background Information. The 2012 Bonds were issued by the Recreation District as fully registered bonds in book entry form, registered in the name of Cede & Co., as nominee for the DTC. DTC is currently acting as securities depository for the 2012 Bonds. Principal of and interest on the 2012 Bonds (interest payable June 15 and December 15 of each year) are payable by Zions Bank, as Paying Agent to the registered owners thereof, currently DTC. No Redemption Provisions. The 2012 Bonds are not subject to optional redemption prior to maturity. Mandatory Sinking Fund Redemption. The 2012 Bonds maturing on December 15, 2019 and December 15, 2021, are subject to mandatory sinking fund redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest thereon to the date of redemption, on the dates and in the principal amounts as set forth below: Mandatory Sinking Fund Sinking Fund Redemption Date Requirements December 15, $185,000 December 15, 2019 (stated maturity) ,000 Total... $365,000 December 15, $180,000 December 15, 2021 (stated maturity) ,000 Total... $360,000 Upon redemption of any 2012 Term Bonds, other than by application of such mandatory sinking fund redemption, an amount equal to the principal amount so redeemed will be credited toward a part or all of any one or more of such mandatory sinking fund redemption amounts for the 2012 Term Bonds, in such order as may be directed by the Recreation District. 5

11 Current Maturity Schedule. Current principal outstanding: $3,200,000 Original issue amount: $3,810,000 Dated: November 6, 2012 Due: December 15, as shown below $2,475,000 Serial Bonds Original Due CUSIP Principal Interest December Amount Rate FH7 $ 180, % FN4 1,135, FP9 1,160, $365, % Term Bond Due December 15, 2019 Price 100% (CUSIP FK0) $360, % Term Bond Due December 15, 2021 Price 100% (CUSIP FM6) Bank Qualified Obligations. The 2012 Bonds are qualified tax exempt obligations under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the deductibility of a financial institution s interest expenses allocable to tax exempt interest. Security. The 2012 Bonds will be general obligations of the Recreation District, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the Recreation District, fully sufficient to pay the 2012 Bonds as to both principal and interest. 4. $20,000,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 2011 CUSIP numbers on the 2011 are provided below. The $20,000,000 General Obligation Bonds, Series 2011 (the 2011 Bonds ) were awarded pursuant competitive bidding received by means of the PARITY electronic bid submission system on February 16, 2011, as set forth in the Official Notice of Bond Sale to Piper Jaffray & Co., Minneapolis, Minnesota, at a true interest rate of 4.40%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor. Background Information. The 2011 Bonds were issued by the Recreation District as fully registered bonds in book entry form, registered in the name of Cede & Co., as nominee for DTC. DTC is currently acting as securities depository for the 2011 Bonds. Principal of and interest on the 2011 Bonds (interest payable June 15 and December 15 of each year) are payable by Zions Bank, as Paying Agent to the registered owners thereof, currently DTC. Optional Redemption. The 2011 Bonds maturing on and after December 15, 2021 are subject to redemption prior to maturity in whole or in part at the option of the Recreation District on December 15, 2020 or on any date thereafter, from such maturities or parts thereof as shall be selected by the Recreation District at the redemption price of 100% of the principal amount to be redeemed plus accrued interest (if any) thereon to the redemption date. 6

12 Current Maturity Schedule. Current principal outstanding: $17,885,000 Original issue amount: $20,000,000 Dated: March 2, 2011 Due: December 15, as shown below Due December 15 CUSIP Principal Amount Original Interest Rate Due December 15 CUSIP Principal Amount Original Interest Rate EP0 $365, % EW5 $1,680, % EQ8 370, EX3 1,750, ER6 390, EY1 1,825, ES4 400, EZ8 1,910, ET2 425, FA2 2,005, EU9 410, FB0 2,880, EV7 430, FC8 3,015, Not Bank Qualified. The 2011 Bonds are not bank qualified obligations. Security. The 2011 Bonds will be general obligations of the Recreation District, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the Recreation District, fully sufficient to pay the 2011 Bonds as to both principal and interest. 5. $5,125,000 Snyderville Basin Special Recreation District Summit County, Utah General Obligation Refunding Bonds, Series 2010 CUSIP numbers on the 2010 are provided below. The $5,125,000 General Obligation Refunding Bonds, Series 2010 (the 2010 Bonds ) were awarded pursuant to a negotiated sale to George K. Baum & Company, Salt Lake City, Utah at a true interest rate of 2.91%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor. Background Information. The 2010 Bonds were issued by the Recreation District as fully registered bonds in book entry form, registered in the name of Cede & Co., as nominee for The DTC. DTC is currently acting as securities depository for the 2010 Bonds. Principal of and interest on the 2010 Bonds (interest payable June 15 and December 15 of each year) are payable by Zions Bank, as Paying Agent to the registered owners thereof, currently DTC. No Redemption Provisions. The 2010 Bonds are not subject to redemption prior to maturity. 7

13 Current Maturity Schedule. Current principal outstanding: $4,090,000 Original issue amount: $5,125,000 Dated: March 9, 2010 Due: December 15, as shown below Due December 15 CUSIP Principal Amount Original Interest Rate 2017 EC9 $755, % 2018 ED7 780, EE5 815, EF2 855, EG0 885, Bank Qualified Obligations. The Recreation District designated the 2010 Bonds as qualified tax exempt obligations pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue Code of 1986, relating to the deductibility of certain financial institutions interest expense allocable to tax exempt interest. Security. The 2010 Bonds will be general obligations of the Recreation District, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the Recreation District, fully sufficient to pay the 2010 Bonds as to both principal and interest. 6. $10,000,000 The Snyderville Basin Special Recreation District Summit County, Utah General Obligation Recreation Bonds, Series 2008 Bonds dated and issued on October 30, 2008 CUSIP numbers on the 2008 Bonds are provided below. The $10,000,000 General Obligation Recreation, Series 2008 (the 2008 Bonds ) were awarded pursuant to competitive sale to PNC Capital Markets, Philadelphia, Pennsylvania at a true interest rate of 4.51%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor. Background Information. The 2008 Bonds were issued by the Recreation District as fully registered bonds in book entry form, registered in the name of Cede & Co., as nominee for DTC. DTC is currently acting as securities depository for the 2008 Bonds. Principal of and interest on the 2008 Bonds (interest payable June 15 and December 15 of each year) are payable by Zions Bank, as Paying Agent, to the registered owners thereof, currently DTC. Optional Redemption. The 2008 Bonds maturing on or prior to December 15, 2018, are not subject to optional redemption prior to maturity. The 2008 Bonds maturing on or after December 15, 2019, are subject to redemption at the option of the Recreation District on December 15, 2018 and on any date thereafter prior to maturity, in whole or in part, from such maturities or parts thereof as may be selected by the Recreation District, at a redemption price equal to 100% of the principal amount of the 2008 Bonds to be redeemed, plus accrued interest thereon to the redemption date. 8

14 Current Maturity Schedule. Current principal outstanding: $930,000 Original issue amount: $10,000,000 Dated: October 30, 2008 Due: December 15, as shown below Due December 15 CUSIP Principal Amount Original Interest Rate DH9 $455, % DJ5 475, $2,140, % Term Bond due December 15, 2022 (CUSIP DN6) $1,220, % Term Bond due December 15, 2024 (CUSIP DQ9) $1,340, % Term Bond due December 15, 2026 (CUSIP DS5) $1,460, % Term Bond due December 15, 2028 (CUSIP DU0) (Strikethrough) These maturities were refunded by the 2015B Bonds. Bank Qualified Obligations. The Recreation District designated the 2008 Bonds as qualified tax exempt obligations pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue Code of 1986, relating to the deductibility of certain financial institutions interest expense allocable to tax exempt interest. Security. The 2008 Bonds will be general obligations of the Recreation District, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the Recreation District, fully sufficient to pay the 2008 Bonds as to both principal and interest. (The remainder of this page has been intentionally left blank.) 9

15 DEBT STRUCTURE OF THE SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, SUMMIT COUNTY, UTAH Outstanding General Obligation Bonded Indebtedness Original Current Principal Final Principal Series (1) Purpose Amount Maturity Date Outstanding 2015B (2)... Refunding $ 7,385,000 December 15, 2028 $ 6,475, A (2)... Recreation/open space 25,000,000 December 15, ,485, (3)... Refunding 3,810,000 December 15, ,200, (3)... Recreation/open space 20,000,000 December 15, ,855, (3)... Refunding 5,125,000 December 15, ,090, (3) (4)... Recreation/open space 10,000,000 December 15, 2018 (5) 930,000 Total outstanding direct debt... $56,035,000 (1) Rated Aa1 by Moody s Investors Service, Inc. ( Moody s ), and. AAA by Standard & Poor s Ratings Services, a Standard & Poor s Financial Services LLC business ( S&P ) (unless otherwise indicated), as of the date of this SUPPLEMENTAL CONTINUING DISCLOSURE MEMORANDUM. (2) These bonds are secured by an unlimited property tax pledge from the Original Boundary Taxing Area. See GENERAL Recreation District Boundary Adjustment above. (3) These bonds are secured by an unlimited property tax pledge from the New Boundary Taxing Area. See GEN- ERAL Recreation District Boundary Adjustment above. (4) Portions of these bonds were refunded by the 2015B Bonds. (5) Final maturity date after a portion of these bonds were refunded by the 2015B Bonds (The remainder of this page has been intentionally left blank.) 10

16 Debt Service Schedule Of Outstanding General Obligation Bonds By Fiscal Year Fiscal Series 2015B Series 2015A Series 2012 Series 2011 Series 2010 Series 2008 Totals Year Ending $7,345,000 $25,000,000 $3,810,000 $20,000,000 $5,125,000 $10,000,000 Total Total Total Debt December 31 Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Service 2016 $ 230,000 $ 225,081 $ 1,015,000 $ 681,000 $ 190,000 $ 57,025 $ 350,000 $ 814,513 $ 525,000 $ 179,950 $ 435,000 $ 68,250 $ 2,745,000 $ 2,025,819 $ 4,770, , ,881 1,035, , ,000 55, , , , , ,000 46,500 2,825,000 1,946,419 4,771, , ,481 1,060, , ,000 (2) 54, , , , , ,000 23,750 2,905,000 1,866,889 4,771, , ,081 1,080, , ,000 (2) 52, , , , , (4) 3,005,000 1,772,874 4,777, , ,481 1,110, , ,000 (3) 50, , , ,000 69, (4) 3,110,000 1,660,904 4,770, , ,881 1,145, , ,000 (3) 48, , , ,000 35, (4) 3,215,000 1,552,374 4,767, , ,681 1,180, ,750 1,135,000 45, , , (4) 3,330,000 1,439,994 4,769, , ,481 1,200, ,150 1,160,000 23, , , (4) 3,420,000 1,353,094 4,773, ,000 96,281 1,230, ,150 1,680, , (4) 3,565,000 1,260,494 4,825, ,000 70,081 1,260, ,400 1,750, , (4) 3,695,000 1,132,144 4,827, ,000 55,525 1,300, ,600 1,825, , (4) 3,825,000 1,003,225 4,828, ,000 39,775 1,335, ,600 1,910, , (4) 3,960, ,350 4,826, ,000 21,900 1,375, ,550 2,005, , (4) 4,110, ,700 4,827, ,420, ,300 2,880, ,013 4,300, ,313 4,859, ,460, ,700 3,015, ,213 4,475, ,913 4,854, ,505, ,900 1,505, ,900 1,697, ,550, ,750 1,550, ,750 1,697, ,595, ,250 1,595, ,250 1,696, ,645,000 51,406 1,645,000 51,406 1,696,406 Totals $ 6,705,000 $ 1,779,613 $ 24,500,000 $ 7,749,506 $ 3,390,000 $ 386,765 $ 18,205,000 $ 9,275,375 $ 4,615,000 $ 701,050 $ 1,365,000 $ 138,500 $ 58,780,000 $ 20,030,809 $ 78,810,809 (1) Mandatory sinking fund principal payments from a $230, % term bond due December 15, (2) Mandatory sinking fund principal payments from a $365, % term bond due December 15, (3) Mandatory sinking fund principal payments from a $360, % term bond due December 15, (4) Principal and interest were refunded by the 2015B Bonds. (5) This bond issue is included in this table because final principal and interest payments occurred in Fiscal Year

17 Other Financial Considerations Interlocal Agreements. The Recreation District has entered into several inter local agreements, with the intent of maximizing the use of tax dollars. See FINANCIAL INFORMATION REGARDING THE SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, SUMMIT COUNTY, UTAH FOR FIS- CAL YEAR 2016 The Recreation District s General Purpose Financial Statements Notes to the Financial Statements; Note 14. Interlocal Agreement with Park City School District and Note 15. Interlocal Agreement with Park City for a Regional Ice Facility below. Overlapping And Underlying General Obligation Debt Recreation Recreation Entity s Recreation 2016 District s District s General District s Taxable Portion of Tax- Per- Obligation Portion of Taxing Entity Value (1) able Value centage Debt G.O. Debt Overlapping: State of Utah... $239,827,705,634 $7,925,366, % $2,173,985,000 $71,741,505 WBWCD (2)... 51,841,388,430 7,925,366, ,139,452 3,234,336 North Summit School District... 1,128,629,108 21,443, ,060,000 96,140 Total Overlapping... 75,071,981 Underlying: Total Underlying... 0 Total Overlapping and Underlying General Obligation Debt... $75,071,981 Total Overlapping General Obligation Debt (excluding the State) (3)... $ 3,330,476 Total Direct General Obligation Bonded Indebtedness... 56,035,000 Total Direct and Overlapping General Obligation Debt (excluding the State)... $59,365,476 This table excludes any additional principal amounts attributable to unamortized original issue bond premium and deferred amount on refunding. (1) Taxable values are preliminary; subject to change. Taxable value used in this table excludes the taxable value used to determine uniform fees on tangible personal property. See FINANCIAL INFORMATION REGARD- ING SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, UTAH Taxable, Fair Market And Market Value Of Property below. (2) The Weber Basin Water Conservancy District ( WBWCD ) covers all of Morgan County, most of Davis County and Weber Counties, and portions of Box Elder and Summit Counties. Principal and interest on WBWCD general obligation bonds are paid from sales of water. WBWCD bonds are shown as overlapping but are self supporting except for a maximum tax rate. (3) The State s general obligation debt is not included in overlapping debt because the State currently levies no property tax for payment of its General Obligation Recreation and Refunding Bonds. 12

18 Debt Ratios The following table sets forth the ratios of general obligation debt (excluding any additional principal amounts attributable to unamortized original issue bond premium and deferred amount on refunding) that is expected to be paid from taxes levied specifically for such debt and not from other revenues over the taxable value of property within the Recreation District (New Boundary Taxing Area), the estimated market value of such property and the population of the Recreation District. The State s general obligation debt is not included in the debt ratios because the State currently levies no property tax for payment of general obligation debt. To 2016 To 2016 To 2016 Population Taxable Market Estimate Per Value (1) Value (2) Capita (3) Direct general obligation debt % 0.53% $2,874 Direct and overlapping general obligation debt ,044 (1) Based on the 2016 Taxable Value of $7,925,654,228, which value excludes the taxable value used to determine uniform fees on tangible personal property. (2) Based on the 2016 Market Value of $10,500,472,410, which value excludes the taxable value used to determine uniform fees on tangible personal property. (3) Based on 2016 population estimate of 19,500 by the Recreation District. See FINANCIAL INFORMATION REGARDING SNYDERVILLE BASIN SPECIAL RECREA- TION DISTRICT, UTAH Taxable, Fair Market And Market Value Of Property. General Obligation Legal Debt Limit And Additional Debt Incurring Capacity The general obligation indebtedness of the Recreation District is limited by State law to 12% of the fair market value of taxable property in the Recreation District. The legal debt limit and additional debt incurring capacity of the Recreation District are based on the fair market value for 2016 (from the New Boundary Taxing Area), and the calculated valuation value from 2016 uniform fees (from the New Boundary Taxing Area), and are calculated as follows: 2016 Fair Market Value... $10,500,472, Valuation from Uniform Fees (1)... 17,519, Fair Market Value for Debt Incurring Capacity... $10,517,992,263 Fair Market Value for Debt Incurring Capacity times 12% equals (the Debt Limit )... $1,262,159,072 Less: Currently Outstanding General Obligation Debt (Net) (2)... (56,035,000) Additional Debt Incurring Capacity... $1,206,124,072 (1) For debt incurring capacity only, in computing the fair market value of taxable property in the Recreation District, the value of all motor vehicles and state assessed commercial vehicles (which value is determined by dividing the uniform fee revenue by 1.5%) will be included as a part of the fair market value of the taxable property in the Recreation District. 13

19 No Defaulted Obligations The Recreation District has never failed to pay principal of and interest on its financial obligations when due. FINANCIAL INFORMATION REGARDING THE SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, SUMMIT COUNTY, UTAH Financial Summaries The summaries contained herein were extracted from the District s basic financial statements for Fiscal Years 2016 through The summaries have not been audited. (The remainder of this page has been intentionally left blank.) 14

20 Snyderville Basin Special Recreation District Statement of Net Position Governmental Activities (This summary has not been audited) As of December Assets and deferred outflow of resources: Current: Cash and cash equivalents $ 5,502,491 $ 5,967,622 $ 5,539,470 $ 6,689,168 $ 6,273,951 Accounts receivable 913, , , , ,864 Note receivable 2,500,000 Prepaid expense 12,725 3,273 1, Other assets 31,913 76,491 76,795 77,408 3,307 Total current assets 6,460,922 6,799,065 6,356,937 9,955,201 6,799,122 Noncurrent: Restricted assets Cash and cash equivalents 29,953,411 32,510,839 7,692,682 10,256,375 11,324,412 Capital assets: Non depreciable 31,004,566 31,291,522 30,909,799 30,435,911 18,866,286 Depreciable assets (net of depreciation) 24,414,052 20,355,622 20,370,711 17,935,960 16,269,161 Total noncurrent assets 85,372,029 84,157,983 58,973,192 58,628,246 46,459,859 Total assets 91,832,951 90,957,048 65,330,129 68,583,447 53,258,981 Deferred outflow of resources 1,344,444 1,236, , ,619 Total assets and deferred outflow of resources 93,177,395 92,193,430 66,038,546 69,379,066 53,258,981 Liabilities and deferred inflow of resources: Current: Accounts payable and accrued expenses 765, , , , ,950 Unearned revenue 13,600 11,650 11, ,771 Total current liabilities 778, , , , ,721 Noncurrent liabities: Due within one year 2,859,510 2,779,699 1,666,954 5,097,728 1,574,600 Due in more than one year... 53,220,423 56,044,955 33,940,083 35,575,049 36,548,457 Total noncurrent liabilities 56,079,933 58,824,654 35,607,037 40,672,777 38,123,057 Total liabilities 56,858,906 59,055,221 35,905,718 41,196,009 38,476,778 Deferred inflow of resources 380, , , ,472 Total liabilities and deferred inflow of resources 57,239,753 59,399,771 36,222,926 41,644,481 38,476,778 Net Position: Invested in capital assets, net of related debt 23,138,791 20,427,698 15,715,510 7,736,871 (2,927,961) Nonspendable 1, Restricted for: Impact fees 2,676,739 2,179,176 2,060,856 1,193, ,973 Debt service.. 3,234,997 2,973,997 2,537,995 2,807,968 2,541,784 Construction and land acquisition 2,962,049 6,050,029 8,120,364 Unrestricted... 6,887,115 7,212,788 6,538,133 9,946,365 6,224,043 Total net position.. $ 35,937,642 $ 32,793,659 $ 29,815,620 $ 27,734,585 $ 14,782,203 (Source: Information extracted from the Recreation District s audited basic financial statements for the indicated years. This summary has not been audited.) 15

21 Snyderville Basin Special Recreation District Statement of Activities (1) Governmental Activities (This summary has not been audited) Net (Expense) Revenue and Changes in Net Assets Fiscal Year Ended December Primary government Governmental activities: Administration $ (1,112,916) $ (867,892) $ (833,771) $ (817,279) $ (876,331) Parks (733,928) (729,559) (235,173) (390,746) (811,773) Trails (992,847) (988,857) (667,041) 6,504,188 (1,013,889) Fieldhouse (426,187) (532,715) (577,092) 1,106,492 (337,730) Recreation (192,682) (281,975) (286,857) (262,971) (283,400) Park City Ice Arena contribution (50,000) (50,000) (50,000) (50,000) (50,000) Open space land maintenance (5,620) (25,000) Change in water source fee credites (42,978) Interest on long term debt (2,149,987) (2,647,212) (1,609,585) (1,667,775) (1,686,114) Total governmental activities (5,701,525) (6,098,210) (4,265,139) 4,396,909 (5,059,237) Total primary government (5,701,525) (6,098,210) (4,265,139) 4,396,909 (5,059,237) General revenues: Property taxes 8,122,766 7,683,826 6,057,105 6,150,937 7,258,339 Vehicle taxes 270, , , , ,120 Premiums on bonds 974,428 Unrestricted investment earnings 343, ,730 70,117 85, ,134 Miscellaneous 108,883 6, Special item: Gain on bond premiums and issue costs 276,229 Property tax settlement (142,884) Total general revenues 8,845,508 9,076,249 6,346,174 6,611,668 7,632,576 Change in net position 3,143,983 2,978,039 2,081,035 11,008,577 2,573,339 Net position beginning... 32,793,659 29,815,620 27,734,585 14,782,203 12,165,906 Prior period adjustment 1,943,805 42,958 Net position ending.. $ 35,937,642 $ 32,793,659 $ 29,815,620 $ 27,734,585 $ 14,782,203 (1) This report is presented is summary format concerning the single item of Net (Expense) Revenue and Changes in Net Assets and is not intended to be complete. For a detailed itemized report see APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR 2016 Statement Of Activities For The Year Ended December 31, 2016 below. (Source: Information extracted from the Recreation District s audited basic financial statements for the indicated years. This summary has not been audited.) 16

22 Snyderville Basin Special Recreation District Balance Sheet Governmental Fund Types General Fund (This summary has not been audited.) Fiscal Year Ended December Assets: Cash and cash equivalents $ 2,656,245 $ 2,525,879 $ 2,695,349 $ 2,537,335 $ 2,871,750 Accounts receivable 9,978 11,906 16,940 9,112 18,119 Due from other fund.. 277,703 5,000 Property taxes receivable. 358, , , , ,634 Prepaid expenses 12,725 3,273 1, Other assets... 1,600 1,904 2,517 3,307 Total assets $ 3,037,002 $ 2,830,630 $ 3,261,447 $ 2,868,219 $ 3,162,810 Liabilities, fund equity and other credits: Liabilities: Accounts payable $ 80,955 $ 98,355 $ 75,682 $ 104,550 $ 85,038 Due to other fund 402 5,266 Unearned revenue. 13,600 11,650 11, ,728 Total liabilities 94,555 98,355 87, , ,032 Deferred inflow of resources 151, , , ,680 Total liabilities and deferred inflow of resources 246, , , , ,032 Equity and other credits: Fund balances: Nonspendable 12,725 3,273 1, Unassigned 2,777,821 2,588,835 3,015,039 2,525,249 2,949,778 Total fund equity and other credits 2,790,546 2,592,108 3,016,116 2,525,339 2,949,778 Total liabilities, fund equity and other credits $ 3,037,002 $ 2,833,903 $ 3,350,258 $ 2,868,219 $ 3,162,810 (Source: Information extracted from the Recreation District s audited basic financial statements for the indicated years. This summary has not been audited.) 17

23 Snyderville Basin Special Recreation District Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Fund Types General Fund (This summary has not been audited.) Fiscal Year Ended December Revenues: Taxes $ 3,383,055 $ 3,375,806 $ 3,176,265 $ 2,933,768 $ 3,662,152 Grants 45,000 35,000 45,000 35,000 35,000 Recreation fees 750,758 Charges for services 1,452,971 1,404,018 1,222,533 1,027, ,130 Interest income 15,760 11,863 8,381 11,836 15,616 Miscellaneous income 5,133 6, Total revenues 4,901,919 4,833,568 4,452,206 4,009,094 4,659,639 Expenditures: Administrative 1,177, , , , ,261 Parks 747, , , , ,788 Trails 596, , , , ,869 Fieldhouse 1,120,111 1,148,007 1,026, , ,904 Recreation 615, , , , ,914 Total expenditures 4,257,616 4,001,175 3,722,996 3,362,373 3,196,736 Excess (deficit) of revenues over expenditures 644, , , ,721 1,462,903 Other financing sources (uses): Park City Ice Arena (50,000) (50,000) (50,000) (50,000) (50,000) Open space land maintenance (5,620) (25,000) Property tax settlement (46,160) Transfers from other funds 277,150 Transfer to other funds (392,592) (1,208,597) (461,040) (950,000) (925,040) Excess (deficit) of revenues and other financing sources over expenditures and uses 201,711 (426,204) 489,700 (424,439) 487,863 Fund balance, January 1 2,588,835 3,015,039 2,525,339 2,949,778 2,418,957 Prior period adjustment 42,958 Fund balance, December 31 $ 2,790,546 $ 2,588,835 $ 3,015,039 $ 2,525,339 $ 2,949,778 (Source: Information extracted from the Recreation District s audited basic financial statements for the indicated years. This summary has not been audited.) 18

24 Historical Recreation District Tax Rates The maximum rate of levy applicable to the Recreation District for operations and maintenance as authorized by the Recreation District s voters pursuant to the Act is per dollar of taxable value of taxable property within the Recreation District. The Recreation District may levy an unlimited tax levy to pay the principal of and interest on legally issued general obligation bonds. Tax Rate (Calendar Year) Maximum Limit Operations and Maintenance (1) General obligation debt: New Boundary Taxing Area (2)... unlimited Original Boundary Taxing Area (3)... unlimited Total Levy (1) This tax rate may only be levied within the New Boundary Taxing Area after Fiscal Year In certain circumstances the State Tax Commission will allow the operating and maintenance tax rate to exceed the maximum tax limit amount. (2) All future general obligation bonds issued, if any, will be payable from a property tax levied in this taxing area. (3) All general obligation bonds issued prior to Fiscal Year 2012, including any refunding of bonds issued prior to Fiscal Year 2012, are payable from a property tax levied in this taxing area. Also see GENERAL Recreation District Boundary Adjustment above. (Source: Reports from the State Tax Commission.) (The remainder of this page has been intentionally left blank.) 19

25 Comparative Total Property Tax Rates Within Summit County Total Tax Rate Within Taxing Area Tax Levying Entity (1) North Summit School District: Coalville City Henefer Town South Summit School District: Francis City Kamas City Oakley City Park City School District: Park City Unincorporated areas (2): North Summit School District South Summit School District Park City School District (1) These tax rates represent a taxing district within the city or town with the highest combined total tax rates of all overlapping taxing districts. (2) These tax rates represent a taxing district within the unincorporated municipalities within the County with the highest combined total tax rates of all overlapping taxing districts. (Source: Reports from the State Tax Commission.) Taxable, Fair Market And Market Value Of Property This table represents the taxable, fair market and market value from the New Boundary Taxing Area (Taxing Entity 4310). % Change % Change Taxable Over Fair Market/ Over Year Value (1) Prior Year Market Value (2) Prior Year 2017 (3)... $7,925,654, % $10,500,472, % ,176,887, ,398,405, ,405,668, ,332,411, ,417,021, ,087,022, ,325,123, ,868,999, (1) There are no redevelopment agencies within the Recreation District. (2) Estimated fair market values were calculated by dividing the taxable value of primary residential property by 55%, which eliminates the 45% exemption on primary residential property granted under the Property Tax Act. (3) Preliminary; subject to change. (Source: Property Tax Division, Utah State Tax Commission.) 20

26 This table represents the taxable, fair market and market value from the Original Boundary Taxing Area (Taxing Entity 6030). % Change % Change Taxable Over Fair Market/ Over Year Value (1) Prior Year Market Value (2) Prior Year 2017 (3)... $9,101,219, % $11,473,947, % ,553,248, ,801,385, ,759,085, ,710,041, ,722,130, ,418,939, ,593,171, ,163,016, There are no redevelopment agencies within the Recreation District. (1) There are no redevelopment agencies within the Recreation District. (2) Estimated fair market values were calculated by dividing the taxable value of primary residential property by 55%, which eliminates the 45% exemption on primary residential property granted under the Property Tax Act. (3) Preliminary; subject to change. (Source: Property Tax Division, Utah State Tax Commission.) (The remainder of this page has been intentionally left blank.) 21

27 Historical Summaries Of Taxable Values Of Property Of Snyderville Basin Special Recreation District 2017 (1) Taxable Value Taxable Value Taxable Value Taxable Value Taxable Value New Original New Original New Original New Original New Original Boundary % of Boundary % of Boundary Boundary Boundary Boundary Boundary Boundary Boundary Boundary Set by State Tax Commission Taxing Area T.V. Taxing Area T.V. Taxing Area Taxing Area Taxing Area Taxing Area Taxing Area Taxing Area Taxing Area Taxing Area (Centrally Assessed) Total centrally assessed $ 79,398, % $ 82,755, % $ 76,554,464 $ 76,626,626 $ 72,753,280 $ 75,182,883 $ 65,752,612 $ 66,882,908 $ 63,658,955 $ 63,884,001 Set by County Assessor (Locally Assessed) Real property: Primary residential 3,147,000, ,900,000, ,715,188,028 2,747,722,830 2,354,907,700 2,384,501,422 2,041,113,290 2,073,877,627 1,886,960,328 1,918,699,252 Other residential 2,965,000, ,005,000, ,777,631,415 3,823,759,720 2,490,832,784 3,506,692,437 2,013,851,003 2,989,911,442 1,982,451,400 2,926,539,253 Commercial and industrial 692,000, ,000, ,784, ,358, ,801, ,007, ,647, ,019, ,381, ,643,022 FAA (greenbelt) 2,545, ,900, ,455,595 2,474,424 1,987,822 2,004,204 1,850,740 1,868,129 1,964,639 1,979,580 Unimproved non FAA (vacant) 887,100, ,007,200, ,175, ,313, ,979, ,581, ,431, ,515, ,958, ,506,477 Agricultural 13,500, ,360, ,988,117 11,988,117 11,338,112 11,459,058 10,836,330 10,957,276 10,468,019 10,468,019 Total real property 7,707,145, ,867,460, ,961,222,833 8,325,617,618 6,218,847,164 7,558,246,614 5,232,730,441 6,524,148,572 5,142,184,965 6,396,835,603 Personal property (2): Primary mobile homes Secondary mobile homes Other business personal 139,110, ,003, ,110, ,003, ,068, ,656, ,538, ,099, ,279, ,452,113 Total personal property 139,110, ,003, ,110, ,003, ,068, ,656, ,538, ,099, ,452,113 Total locally assessed 7,846,255, ,018,464, ,100,333,158 8,476,621,572 6,332,915,622 7,683,902,715 5,351,268,503 6,655,247,992 5,142,184,965 6,529,287,716 Total taxable value $ 7,925,654, % $ 9,101,219, % $ 7,176,887,622 $ 8,553,248,198 $ 6,405,668,902 $ 7,759,085,598 $ 5,417,021,115 $ 6,722,130,900 $ 5,205,843,920 $ 6,593,171,717 (1) Preliminary; subject to change. (2) Does not include taxable valuation associated with SCME (semi-conductor manfacturing equipment). (Source: Property Tax Division, Utah State Tax Commission.) 22

28 Tax Collection Record Please see the following tax collection records of taxing entities 4310 and 6030 (see GENERAL Recreation Boundary Adjustment above): Taxing Entity 4310 (4) Deliq., % of % of (1) Personal Current Total Tax (2) (3) Property Collec- Collec- Year Total Trea- Current and Miscel- Total tions to tions to End Taxes surer s Net Taxes Col- leous Col- Col- Net Taxes Net Taxes 12/31 Levied Relief Assessed lections lections lections Assessed Assessed 2016* $5,092,288 $10,367 $5,081,921 $4,849,024 $378,992 $5,228, % 102.9% ,450,802 10,360 4,440,442 4,237, ,567 4,655, ,076,693 7,524 3,069,169 2,910, ,335 3,161, ,011,969 10,847 3,001,122 2,758, ,031 3,205, ,113,467 7,832 3,105,635 2,988, ,671 3,528, (1) In addition to the Total Collections indicated above, the Recreation District collected fees in lieu payments for tax year 2016 of $262,798; for tax year 2015 of $207,965; for tax year 2014 of $208,004; for tax year 2013 of $233,579; and for tax year 2012 of $214,556; from tax equivalent property associated with motor vehicles, watercraft, recreational vehicles, and all other tangible personal property required to be registered with the State. (2) Includes adjustment (or reduction of taxable value) for redevelopment agencies located in the Recreation District. (3) Treasurer s Relief includes abatements established by statute to low income, elderly and for hardship situations. These Treasurer s Relief items are levied against the property, but are never collected and paid to the entity. (4) Delinquent Collections include interest; sales of real and personal property; and miscellaneous delinquent collections. * Preliminary; subject to change. Taxing Entity 6030 (4) Deliq., % of % of (1) Personal Current Total Tax (2) (3) Property Collec- Collec- Year Total Trea- Current and Miscel- Total tions to tions to End Taxes surer s Net Taxes Col- leous Col- Col- Net Taxes Net Taxes 12/31 Levied Relief Assessed lections lections lections Assessed Assessed 2016* $3,034,730 $5,169 $3,029,561 $2,881,611 $23,117 $2,904, % 95.9% ,141,103 6,011 3,135,091 2,993,627 44,027 3,037, ,054,397 6,098 3,048,298 2,889, ,842 3,100, ,033,536 5,360 3,028,176 2,789,668 20,219 2,809, ,819,693 7,688 3,812,005 3,736, ,737, (1) In addition to the Total Collections indicated above, the Recreation District collected fees in lieu payments for tax year 2016 of $804*; for tax year 2015 of $667; for tax year 2014 of $714; for tax year 2013 of $861; and for tax year 2012 of $0; from tax equivalent property associated with motor vehicles, watercraft, recreational vehicles, and all other tangible personal property required to be registered with the State. (2) Includes adjustment (or reduction of taxable value) for redevelopment agencies located in the Recreation District. (3) Treasurer s Relief includes abatements established by statute to low income, elderly and for hardship situations. These Treasurer s Relief items are levied against the property, but are never collected and paid to the entity. (4) Delinquent Collections include interest; sales of real and personal property; and miscellaneous delinquent collections. * Preliminary; subject to change. (Source: Utah State Tax Commission.) 23

29 Taxing Entities 4310 and 6030 (4) Deliq., % of % of (1) Personal Current Total Tax (2) (3) Property Collec- Collec- Year Total Trea- Current and Miscel- Total tions to tions to End Taxes surer s Net Taxes Col- leous Col- Col- Net Taxes Net Taxes 12/31 Levied Relief Assessed lections lections lections Assessed Assessed 2016* $8,127,017 $15,535 $8,111,482 $7,730,635 $402,108 $8,132, % 100.3% ,591,905 16,371 7,575,534 7,230, ,594 7,693, ,131,089 13,622 6,117,467 5,800, ,176 6,262, ,045,505 16,207 6,029,298 5,547, ,250 6,015, ,993,160 15,519 6,917,640 6,725, ,384 7,265, (1) In addition to the Total Collections indicated above, the Recreation District collected fees in lieu payments for tax year 2016 of $263,602; for tax year 2015 of $595,701; for tax year 2014 of $387,736; for tax year 2013 of $234,440; and for tax year 2012 of $214,556; from tax equivalent property associated with motor vehicles, watercraft, recreational vehicles, and all other tangible personal property required to be registered with the State. (2) Includes adjustment (or reduction of taxable value) for redevelopment agencies located in the Recreation District. (3) Treasurer s Relief includes abatements established by statute to low income, elderly and for hardship situations. These Treasurer s Relief items are levied against the property, but are never collected and paid to the entity. (4) Delinquent Collections include interest; sales of real and personal property; and miscellaneous delinquent collections. (Source: Utah State Tax Commission.) * Preliminary; subject to change. Some Of The Largest Taxpayers The following table represents the larger taxpayers within the New Boundary Taxing Area (4310) for the Recreation District s Fiscal Year 2016 (Calendar Year 2016). % of the Recreation 2016 District s Taxable 2016 Taxpayer Type of Business Value (1) Tax Value Westgate Resorts... Resort $ 67,921, % Grand Summit Resort... Resort hotel 59,291, Sunrise Park City LLC... Real estate development 55,400, COROC Park City... Retail (Factory stores) 53,170, TCFC Propco LLC... Real estate development 44,812, Promontory Development LLC... Commercial property 43,678, Boyer Spring Creek... Commercial property 39,870, Promontory Investments LLC... Resort hotel 37,415, Talisker Canyons (WA Dakota) LLC... Resort hotel 36,640, Talisker Canyons Leaseco LLC... Finance and insurance 33,004, Totals... $471,202, % (1) Taxable Value used in this table excludes the taxable value used to determine Uniform Fees on tangible personal property. See Taxable, Fair Market And Market Value Of Property above. (Source: Summit County Treasurer.) 24

30 The Recreation District s Basic Financial Statements Included with this supplement is the Recreation District s basic financial statement for Fiscal Year Additionally, the Recreation District s current and historical financial statements may be found on the State of Utah, State Auditor s website at: (The remainder of this page has been intentionally left blank.) 25

31 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, A COMPONENT UNIT OF SUMMIT COUNTY, UTAH BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION WITH INDEPENDENT AUDITOR'S REPORTS YEAR ENDED DECEMBER 31, 2016

32 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2016 INDEPENDENT AUDITOR'S REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS Starting on Page 1 3 BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE. FINANCIAL STATEMENTS Statement of Net Position Statement of Activities FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS Balance Sheet Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities NOTES TO THE FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY SCHEDULES AND NOTES Budgetary Comparison Schedule - General Fund Budgetary Comparison Schedule - Special Revenue Fund Notes to the Budgetary Comparison Schedules PENSION SCHEDULES AND NOTES UTAH RETIREMENT SYSTEMS Schedule of the Proportionate Share of the Net Pension Liability Schedule of Contributions Notes to the Pension Schedules STATE LEGAL COMPLIANCE REPORT INDEPENDENT AUDITOR'S REPORT IN ACCORDANCE WITH THE STATE COMPLIANCE AUDIT GUIDE ON: COMPLIANCE WITH GENERAL STATE COMPLIANCE REQUIREMENTS INTERNAL CONTROL OVER COMPLIANCE 48 GOVERNMENT AUDITING STANDARDS REPORT INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MA TIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 50

33 GREG OGDEN. CPA 1761 EAST 850 SOUTH SPRINGV(LLE. UT (801) MEMDER OF THE AMERICAN INSTITUTE OF CE!>TIPIEO Pue ~rc ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT Board of Directors Snyderville Basin Special Recreation District Report on the Financial Statements I have audited the accompanying financial statements of the governmental activities and each major fund of Snyderville Basin Special Recreation District (District), a component unit of Summit County, Utah as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express opinions on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions. T HE CPA. NEVER UNDERESTIMATE THE VALUE. 1

34 Opinions In my opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of December 31, 2016, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3-13, budgetary comparison information on pages 42-44, and pension information on pages be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. I have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required bv Government Auditing Standards In accordance with Government Auditing Standards, I have also issued a report dated May 1, 2017, on my consideration of the District's internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. 2

35 MANAGEMENT'S DISCUSSION AND ANALYSIS

36 MANAGEMENT'S DISCUSSION AND ANALYSIS As the management of the Snydervil le Basin Special Recreation District (District), we offer readers of the District's financial statements this narrative overview and analysis of the financial activities of the District for the year ended December 3 l, We encourage readers to consider the information presented here in conjunction with the financial statements, which follow this section. FINANCIAL HIGHLIGHTS District Wide FinanciaJ HighJights The District operated in a fiscally responsible nature, which resulted in a positive outcome as displayed throughout this analysis. Total assets increased by $875,903 or l.0%. The increase is due to the continued development of the District's trail and park system. Total liabilities decreased by $2, 196,315 or 3.7% due to payments toward the District's outstanding general obligation bond debt. Total net position increased by $3,143,983 or 9.6%. Fund Level FinanciaJ Highlights All District funds are governmental and are categorized into four major funds as follows: o General Fund - The General Fund is the primary operating fund of the District. A total of $392,592 was transferred from the General Fund to the Capital Fund this year. In accordance with Utah Code, the accumulation of the fund balance in tbe General Fund may not exceed 100% of the current year's property tax collections. The General Fund balance, after the transfer, was $2, 790,546, leaving the fund balance at 85.5% of the a llowed balance. o Debt Service Fund - The Debt Service Fund's purpose is to repay principal and interest on the District's general obligation bonds. The Debt Service Fund balance increased from $2,973,997 to $3,234,997, an increase of $261,000 or 8.8%. The increase is associated with the collection of higher than expected property tax revenues. o Special Revenue Fund - The Special Revenue Fund's purpose is to pay for new community park, trai l and recreation system improvements based on the District's Impact Fee Facilities Plan. The Impact Fee Fund balance increased from $2, 179, 176 to $2,676, 739, an increase of $497,563 or 22.8%. The District collected more impact fee revenue. for th e construction of new development than was used towards capital projects in o Capital Fund - The Capital Fund primarily holds funds for spend down following the sale of general obligation bonds, in addition to grants received, and capital contributions rolled over from the District's operations budget to fond capital projects approved by the Administrative Control Board. The Capital Fund balance decreased from $31,002,297 to $26,601,419, a decrease of $4,400,878 or 14.2%. This net change is outli ned later under Capital Asset and Debt Administration. There is $972,097 assigned within the capital fund for capital replacement projects. 3

37 REPORTING THE DISTRICT AS A WHOLE This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are compri sed of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to the private-sector. The statement of net position presents infonnation on all the District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources; w ith the difference between the combined assets and deferred outflows of resources and the combined liabilities and deferred inflows of resources reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. However, readers will also need to consider other nonfinancial factors. The statement of activities presents infonnation showing how the District's net position changed during the calendar year reported. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, all the cu1tent year's revenues and expenses are taken into account regard less of when cash is received or paid. REPORTING THE DISTRICT'S MOST SIGNIFICANT FUNDS A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District also uses fund accounting to ensure and demonstrate compli ance with finance-related legal requirements. All District funds are classified as Governmental funds. These funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. These fund statements focus on how money flows into and out of these funds and the resulting balances left at year-end are available for spending. These funds are reported using an accounting method called modified accrna l accounting, which measures cash and other financial assets that can be readily conve1ted to cash. The governmental fund statements provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund infonnation helps users detenuine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activi6es) and governmental funds is described in a reconciliation inc luded with the fund financial statements. The four major governmental funds of the District (as dete1mined by Generally Accepted Accounting Princjples, GAAP) are as follows; 4

38 General Fund - The purpose of this fund is to account for all financial resources except those requ ired to be accounted for in another fund (described bejow). GeneraJ Fund monies are primarily used for the operations and maintenance of District facilities, programs, administration, trails, and open space. Capital Projects Fund - The objective of this fund is to account for the financial resources to be used for the acquisition or constrnction of major capital facil ities as authorized by the voters. This fund also accounts for grants received for specific capi tal projects. Excess funds accumulated through the operational tax levy may be earmarked for capital projects as approved by the District Board. Special Revenue Fund - The District imposes impact fees for the development of community park, recreation, and trail facilities. The Impact Fees Act requires the District to separately account for the receipts and disbursement of these fees. Impact fee expenditures may only be used for authorized facilities identified in the District's Impact Fee Facilities Plan. Debt Service Fund - The purpose of this fund is to account for the assessed and collected taxes for the payment of general long-term debt principal and interest GOVERN MENT-WIDE FlNANCIAL ANALYSIS As noted earl ier, net position may serve over time as a useful indicator of a government's financial position. In the case of the District, assets exceed liabilities by $35,93 7,642, which is a $3, 143,983 increase from the prior year. The major components of the District's net position include: Net Investment in Capital Assets - This reflects the investment in capital assets (e_g., park land, open space, trails, buildings, infrastrncture assets, machinery and equipment) plus the balance of unspent bond proceeds from the 20 l l and 20 l 5 issued general obligation bonds minus outstanding balances of capital related debt. Restricted for Debt Service - Although the District's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, such as property tax collections and interest income, since the capital assets themselves cannot be used to liquidate these liabilities. Restricted for Impact Fees - Included in this amount are impact fee funds restricted for qualified capital improvements approved by the District Board as a part of the annual budget adoption process- Unrestricted - Included in this amount are funds available for uses other than those that have been previously invested in capital assets or are otherwise restricted for debt service and capital improvements_ 5

39 A condensed version of the District's Statement of Net Position as of December 31, 2016 is presented below, with comparative infonnation for Snyderville Basin Special Recreation District STATEMENT OF NET POSITION Governmental Activities ASSETS Current assets Noncurrent assets Total assets DEFERRED OUTFLOW OF RESOURCES Total assets aod deferred outflow of resources LIABILITJES Cur.rent liabilities Noncurrent liabilities Total liabilities DEFERRED JN.FLOW OF RESOURCES Total liabilities and deferred Inflow of resources NET POSITION Net investment in capital assets Restricted for: lrnpact fees Debt service Unrestricted rotal net position December 31, 2016 $ $ 6,460,922 85,372,029 91,832,951 1,344,444 93,177, ,973 56,079,933 56,858, ,847 57,239,753 23,138,791 2,676,739 3,234,997 6,887,115 35,937,642 December 31, 2015 $ $ 6,799,065 84,157,983 90,957,048 I,236,382 92,193, ,567 58,824,654 59,055, ,550 59,399,771 20,427,698 2,179,176 2,973,997 7,212,788 32,793,659 6

40 The following statement provides information regardi'ng the nature and source of the changes in net position from year ending 2015 to year ending Snydervillc Basin Special Recreation District CHANGES IN NET POSITION Governmental Activities December JI, 2016 December 31, 2015 REVENUES Program revenues: Charges for services $ l,452,971 $ J,404,018 Operating grants and contributions 45,000 35,000 Capital grants and contributions 526, ,489 General revenues: Property taxes 8,122,766 7,683,826 Fee in lieu of taxes 270, ,384 Unrestricted investment earnings 343, ,730 MisceUaneous 108,883 6,88 1 Special item: Premiwn on bonds 974,428 Total revenues 10,870,4)8 11,019,756 EXPENSES Administration 1, 162, ,617 Parks 1.231,954 1,268,969 Trails 1,088,640 l,034,681 Fieldhouse 1.390,455 1,477,999 Recreation 610, ,239 Park City ice arena contribution 50,000 50,000 Change in Water Source Fee Credits 42,978 Long-term debt 2,149,987 2,647,212 Total expenses 7,726,435 S,041,717 CHANGE IN NET POSITION 3,143,983 2,978,039 Net position beginning (1 / 1/16) 32,793,659 29,815,620 Net position ending ( 12/31116) $ 35,937,642 $ '32,793,

41 Revenues: Total revenue shows a decrease of$ J 49,338. Program and General revenues increased from The District did not issue general obligation bonds in 20 l 6 and therefore did not receive revenue from bond premiums as it did in 2015, resulting in a total revenue decrease. In the General Revenues detailed above, tbe District is funded primarily through property tax collections, fee in lieu of taxes (vehicle registrations), interest income through funds held at the State Treasurer's Pool, and miscellaneous reimbursements to the District. Impact fees are reported as Capital Contributions. lmpact fee collections for parks, recreation, and trails plus the related interest income in totaled $549,866. The allocation for parks and recreation improvements is $452,664; the allocation for trail improvements is $97,202. These fees are used for capital improvements for park, recreation, and trail facilities identified in the District's Impact Fee Facilities Plan. Charges for services include recreation program, special event, field rental, and Fieldhouse fees. The 2016 increase of $48,953, or 3.5%, can be largely attributed to an increase in Fieldhouse memberships as well as programs offered by the Recreation Department. Summit County's annual contribution remained the same as the previous year at $35,000. Summit County contributes annually to each of the recreation regions in the County, including the Snyderville Basin, North Summit, and South Summit recreation programs. Expenses: The expenses listed in Changes In Net Position are comprised of the District's five major depa11ments with three additional categories: Park City ice arena contribution, water source fee credits, and long-tenn debt interest and cost of issuance. Total expenses saw a decrease of $315,282 mainly due to the long-tenn debt interest payments. The Administration Department primarily holds operational expenses such as payroll expenditures and all related benefits for Administration personnel including the District Director~ Planning & Legal Affairs Manager, District Administrator, and other Finance and Administration staff Also included are administrative overhead expenses such as utilities, legal and other professional consulting fees, liability insurance, public relation/promotions, and office supplies and equipment. Other expenses for the purposes of Net Position are compensated absences, pension plan adjustments, current depreciation expense and capital expenditures not capitali zed. The Parks Department contains operational expenses that include the department manager as well as year-round and seasonal wages for parks labor and all related benefits. It also includes utility fees for park operations, park faci li ties maintenance, vehicle and equipment expense, fertilizers, chemicals, and other departmental supplies. Other expenses for tbe purposes of Net Position are pension plan adjustments, capital expenditures not capitalized, and current depreciation expense. 8

42 The Trails Department contains operational expenses that include the department manager as well as year-round and seasonal wages for trails and open space labor and all related benefits. rt also includes professional and technical consultant fees, contract services for trail repair and weed management, open space management and maintenance, utilities for trail facili ties, and other departmental supplies. Other expenses for the purposes of Net Position are pension plan adjustments, capital expenditures not capitalized, and current depreciation expense. The Fieldhouse Department operational expenses reflect the department manager as well as yearround and seasonal wages and all related benefits, all Fieldhouse overhead expenditures, and all expenditures for Fieldhouse run fitness, sports, and camp programs. Other expenses for the purposes of Net Position are pension plan adjustments, capital expenditures not capitalized, and current depreciation expense. The Recreation Department operational expenses reflect the department manager, year-round and seasonal wages and all related benefits, and all expenditures for District-run sports programs, camps, and special events. Other expenses for the purposes of Net Position are pension plan adjustments, capital expenditures not capitalized, and current depreciation expense. The District is obligated (see Note I 5) to contribute $50,000 annually to Park City per the Interlocal Agreement for Regional Ice Facility. The District's water source fee credits with Mountain Regional Water are explained in Note 18 of the financial statements. The final expense category, long-term debt, reflects interest payments on general obligation bonds issued by the District in 2008, 2010 (refunding of2002), 2011, 2012 (partial refunding of2004) and two series in 2015 (one of which was refunding the remaining portion of 2004 and part of 2008). Other expenses for the purposes of Net Position is the deferred amount on refunding and accrued interest payable. FINANCIAL ANALYSIS OF GOVERNMENT FUNDS The focus of the District's governmental funds is to provide infonnation on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's fi nancing requirements. As of December 31, 2016, the District's gov em mental funds (General, Capital Projects, Debt Service, and Special Revenue) reported combined fund equity of $35,303,701. This represents a decrease of $3,440,604 from last year's ending balance. The spend down of the 2011and2015 bond funds is the main cause for the decrease in equity. Taxes are the largest source of revenue in the govemmental funds and represent 74.7% of total governmental fond revenues. The largest element of taxes since the District's inception has been property taxes for the current year and prior year collections (redemption). The remaining 25.3% of revenue in the governmental funds are operating and capital grants and contributions, charges for services, interest income, and miscellaneous income. 9

43 GENERAL FUND BUDGETARY HIGHLIGHTS The General Fund is the chief operating fund of the District. All activities which are not required to be accounted for in separate funds either by state or local ordinance (such as impact fees and debt service), capital funds resulting from voter approved recreation bonds, or funds designated for capital projects as approved by the Administrative Control Board are accounted for in this fund. During the calendar year 2016, the General Fund adopted budget for expenditures was amended up from an original budget expenditure of $4,649,314 to a final budget of $4,690,745 (actual expenditures were $4,257,6 l 6 or 90.8% of the final amended budget). The 2016 General Fund budget for revenues was amended up from an original budget revenue amount of $4,78 l,143 to a final budget of $4,808,337 to reflect the higher than anticipated revenue from property taxes. Actual revenue came in above the final budget at $4,901,919, which created excess revenues over expenditures of $644,303. The Board authorized a transfer at 2016 year-end of $392,592 from the General Fund to the Capital Fund. The General Fund transfer was initiated for capital related projects and expenditures planned in 2017 and 2018, and to keep the general fund balance in compliance with Utah Code. Statement of Revenues General Fund Only For the Year Ended Dec 31, Interes t 0.3% Grants _ 0.9% Charges for services 2946% ;,.. Property Taxes 69.0% 10

44 CAPITAL ASSET AND DEBT ADMINISTRATION CAPlT AL ASSETS The Districes 2016 investment in capital assets brings the accumulated amount to $55,418,6 I 8 (net of accumulated depreciation). The in vestment in capital assets includes land acquisition, buildings, trail and trailhead infrastructure im provements, park improvements, vehicles and equipment, etc. Major capital asset events during 20 I 6 included the fo llowing: Hwy 224 Trail from Silver Springs to Redstone - funded by 2011 issued bond for trails Community Church section of the Millennium Trail- funded by 2011 issued bond for trails Construction in progress of the final expansion of T he Fieldhouse to include an indoor multi-use gymnasium and outdoor lap lane pool - funded by 2015 issued bond for recreation Run-A-Muk off-leash area extension CAPITAL ASSETS December 31, 2016 December 3 l, 2015 Land $ 9,624,659 $ 9,624,659 Open Space 21,359,907 21,359,907 Water shares 20,000 20,000 Buildings 10, 125,926 10,021,676 Parks 8,500,938 8,447,301 Trails 10,697,674 9,753,643 Vehicles and equipment 1,479,459 J,443, 131 Constmction in progress 4,163, ,956 Subtotal 65,972,425 60,957,273 Less accumulated depreciation ( I 0,553,807) (9,310,129) Net capital assets $ 55,418,618 $ 51,647,144 Additional information on the District's capital assets may be found in the notes to the financial statements. DEBT ADMJNISTRA TION As of December 3 1, 2016, the District had total bonded debt outstanding of $56,035,000. All of this debt is general obligation debt and is backed by the fu ll faith and credit of the District. These general obligation bonds were issued for specified capital projects. The District's debt fund, which is serviced by ad valorem taxes to be levied without limitation as to rate or amount on all taxable property in the District, will provide all funding for the bonds' principal and interest repayment In addition to the general obligation bond debt, the District has long-tenn debt in the form of compensated absences in the amount of $.44,933. The combination of these items results in $56,079,933 of total long-term debt at year-end, a reduction of$2,744,721from2015. Additional information on the outstanding debt obligations of the District may be found in the notes to the financial statements. 11

45 ECONOMIC OUTLOOK The economic outlook for the District is positive as growth continues in the District as evidenced in the development projects detailed below. A 240-acre residential and commercial development agreement for the southeast corner of Silver Creek Junction was approved by the Summit County Council on June 3, The development, Silver Creek Village, anticipates 1290 residential units and 50,000 square feet of neighborhood commercial space. The agreement includes a land dedication of approximately 80 acres to the District for a community park, trails and open space. Site improvements have begun, as required by the development agreement. The Snyderville Basin Planning Commission approved the Discovery CORE project, a development between Pinebrook and Summit Park, which proposes 97 units of residential density, with 67 market rate units and 30 affordable units. The un its are broken down into Single Family Attached and Single Family Detached and integrated throughout the project. Included in the project is the dedication of acres of open space to the District and the conveyance of a one acre parcel to the District to be used as a trailhead. The project must now be approved by the County Manager. The Park City Tech Center at Kimball Junction is entitled to 1.2 million square feet of office space. The development agreement states that the developer wiji contribute $300,000 to Summit County after construction of 300,000 gross square feet of research space based upon the issuance of Certificates of Occupancy. An agreement exists between Summit County and the District that such funds will be paid to the District to reimburse the District for a portion of the costs associated with the construction of the SR 224 Underpass, which was completed in There are currently two buildings in the Tech Center: one office building consisting of approximately 30,000 square feet and the recently completed Skull Candy building consisting of approximately 49,000 square feet. In addition, the developer has public trail obligations to uphold contingent upon the development. Development continues near the Canyons Village of Park City Mountain. First, the Lift Hotel plans to add 61 condominium residences on LY-22 utilizing the 114,000 square feet of hotel/lodging density. Second, the Apex Residences plan to add 161,000 square feet of multi-family residential density with a total of 63 units. Third, the Frostwood development will add 25 units of multi-family residential space, totally 50,000 square feet. Fourth, the White Pine Canyon Village project will add 30 multi-family residences, utilizing 80,000 square feet of multi-family residential density. Fifth, the Lofts at BlackStone plan to add 60 condominiums accounting for 86,524 square feet. Last, the Vintage on the Strand Phase 3 project proposes 51, 143 square feet of multi-family and single family residential units. The Village at Silver Creek is currently before the Snyderville Basin Planning Commission looking to create a mixed-use project in Silver Creek. The project would add 45,001 square feet of residential space ( 48 apartments of varying size), 45,930 square feet of retail space and 18,466.5 square feet of office space. The development contemplates a transit stop to tie to paved bike paths. 12

46 REQUESTS FOR INFORI\-1AT10N This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District's finances. Questions concerning any info1mation provided in this report or requests for additional financial information should be addressed to: District Administrator, Snyderville Basin Special Recreation District, Trailside Drive, Park City, Utah

47 BASIC FINANCIAL STATEMENTS

48 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT STATEMENT OF NET POSITION DECEMBER 31, 2016 ASSETS AND DEFERRED OUTFLOW OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable Prepaid Expense Other Assets TOTAL CURRENT ASSETS NONCURRENTASSETS Restricted Assets Cash and Cash Equivalents Capital Assets Non Depreciable Depreciable Assets (net of Depreciation) TOTAL NONCURRENT ASSETS TOTAL ASSETS DEFERRED OUTFLOW OF RESOURCES TOTAL ASSETS AND DEFERRED OUTFLOW OF RESOURCES LIABILITIES AND DEFERRED INFLOW OF RESOURCES CURRENT LIABILITIES Accounts Payable and Accrued Expenses Unearned Revenue TOTAL CURRENT LIABILITIES NONCURRENT LIABILITIES Due Within One Year Due in more than One Year TOTAL NONCURRENT LIABILITIES TOTAL LIABILITIES DEFERRED INFLOW OF RESOURCES TOTAL LIABILITIES AND DEFERRED INFLOW OF RESOURCES NET POSITION Net Investment in Capital Assets Restricted for Impact Fees Debt Service Unrestricted TOTAL NET POSITION $ $ Governmental Activities 5,502, ,793 12,725 31,913 6,460,922 29,953,411 31,004,566 24,414,052 85,372,029 91,832,951 1,344,444 93,177, ,373 13, ,973 2,859,510 53,220,423 56,079,933 56,858, ,847 57,239,753 23, 138,791 2,676,739 3,234,997 6,887,115 35,937,642 See the accompanying notes to the financial statements 14

49 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT STATEMENT OF ACTIVITIES FOR THEYEAR ENDED DECEMBER 31, 2016 FUNCTIONS/PROGRAMS Governmental Activities Administration $ Parks Trails Fieldhouse Recreation Park City Ice Arena Contribution Change in Water Source Fee Credits Interest and Costs of Issuance on Long-Term Debt Program Revenues Net (Expense) Revenue and Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities 1,162,171 1,231,954 1,088,640 1,390, ,250 50,000 42,978 2,149,987 $ 4,255 $ 66, , ,568 45,000 $ - 431,938 95,001 $ (1, 112,916) (733,928) (992.,847) (426, 187) (192,682) (50,000) (42,978) (2,149,987) TOTAL GOVERNMENTAL ACTIVITIES $ $ 1,452,971 $ $ {5, 701,525) General Revenues Property Taxes Vehicle Taxes Unrestricted Investment Earnings Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning Net Position - Ending 8,122, , , ,883 8,845,508 3,1 43,983 32,793,659 $ 35,937,642 See the accompanying notes to tbe financial statements 15

50 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2016 General ASSETS Cash and Cash Equivalents $ 2,656,245 $ Accounts Receivable 9,978 Property Taxes Receivable 358,054 Restricted Cash Prepaid Expenses 12,725 Debt Special Capital Service Revenue Projects - $ - $ - 1,328 2, ,952 2,921,991 2,675,411 27,202,255 Total Governmental Funds $ 2,656,245 13, ,006 32,799,657 12,725 TOT AL ASSETS $ 3,037,002 $ 3,463,943 $ 2,676,739 $ 27,204,736 $ 36,382,420 LIABILITIES, DEFERRED INFLOW OF RESOURCES ANO FUND EQUITY LIABILITIES Accounts Payable $ 80,955 $ Unearned Revenues 13,600 - $ - $ 603,317 $ 684,272 13,600 TOTAL LIABILITIES 94,555 DEFERRED INFLOW OF RESOURCES 151, , , , ,847 TOTAL LIABILITIES AND DEFERRED INFLOW OF RESOURCES 246, , ,317 1,078,719 FUND BALANCE Non-Spendable 12,725 Restricted for Debt Service Impact Fees Construction and Land Acquisition Assigned for Capital Replacement Capital Projects Unassigned 2,777,821 3,234,997 2,676,739 23,755, ,097 1,874,149 12,725 3,234,997 2,676,739 23,755, ,097 1,874,149 2,777,821 TOTAL FUND EQUITY 2,790,546 TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND EQUITY $ 3, $ 3,234,997 2,676,739 26,601,419 3,463,943 $ 2,676,739 $ 27,204,736 35,303,701 $ 36,382,420 See the accompanying notes to the financial statements 16

51 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER 31, 2016 TOTAL GOVERNMENTAL FUNDS BALANCES $ 35,303,701 Amounts reported for governmental activities in the statement of net position are different because Impact Fee credits are available for use in future periods and are not recorded as income in the current period, therefore, they are not reported in the funds Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. Deferred outflows of resources related to pensions and bond refundings represent a consumption of net position that applies to future periods and therefore, are not reported in the funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. 31,913 55,418,618 1,344,444 (56,161,034) TOTAL NET POSITION OF GOVERNMENTAL ACTIVITIES $ 35,937,642 See the accompanying notes to the financial statements 17

52 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2016 General Debt Service REVENUES Taxes $ 3,383,055 $ 5,010,340 Grants 45,000 Charges for Services 1,452,971 Impact Fees Interest 15,760 23,210 Miscellaneous 5,133 Totar Spec.ial Capital Governmental Revenue Projects Funds $ - $ - $ 8,393,395 45,000 1,452, , ,939 22, , , , ,883 TOTAL REVENUES 4,901,919 5,033, , ,083 10,870,418 EXPENDITURES Administration 1,177,903 Parks 747,446 Trails 596,642 Fieldhouse 1,120,111 Recreation 615,514 Debt Service Principal 2,745,000 Interest and Finance Charges 2,027,550 Capital Outlay TOT AL EXPENDITURES 4,257,616 4,772,550 EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES 644, ,000 OTHER FINANCING SOURCES {USES} Park City Ice Arena Contribution (50,000) Transfers from Other Funds Transfers to Other Funds (392,592) EXCESS (DEF ICIT) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES 201, ,000 BEGINNING FUND BALANCE 2,588,835 2,973',997 ENDING FUND BALANCE $ 2i790,546 $ 3,234,997 34,511 1,212,414 70, ,964 49, ,848 18,846 1,138,957 4, ,574 2,745,000 2,027,550 5,053,715 5,053,715 5,230,856 14,261, ,866 (4,845,773) (3,390,604) (50,000) 444, ,895 (52,303) (444,895) 497,563 (4,400,878) (3,440,604) 2,179,176 31,002,297 38,744,305 $ 2,676,739 $ 26,601,419 $ 35,303,701 See the accompanying notes to the financial statements 18

53 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2016 EXCESS (DEFICIT) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES -TOTAL GOVERNMENTAL FUNDS $ (3,440,604) Amounts reported for governmental activities in the statement of activites are different because Governmental funds report capital outlays as expenditures. In the statement of activities the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Issuance of long-term debt provides current financial resources to governmental funds. The repayment of the principal of long-term debt consumes the current financial resources of governmental funds. This amount is t he net difference in the treatment of long-term debt and related items. Some revenues and expenses reported in the statement of activities do not add to or require the use of current financial resources and, therefore, are not reported as revenues or expenditures in the governmental funds. This is the difference between prior and current accrued interest and the usage of impact fee credits. CHANGE IN NET POSITION OF GOVERNMENTAL FUNDS 3,771,474 2,618, ,137 $ 3,143,983 See the accompanying notes to the financial statements 19

54 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT, A COMPONENT UNIT OF SUMMIT COUNTY, UTAH NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 I 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the Snyderville Basin Special Recreation District (District) have been prepared in conformity with accounting principles generally accepted in the United States of America applicable to state and local governments. Generally accepted accounting principles for local governments include those principles prescribed by the Governmental Accounting Standards Boards (GASS). The following is a summary of the more significant of the District's accounting policies. Financial Reporting Entity The Snyderville Basin Special Recreation District was established on July 1, 1986 by Summit County, Utah as a governmental service district under Title 11, Chapter 23 of the Utah Code Annotated, 1953, as amended. The District was established to provide recreation for the Snyderville Basin area of Summit County. In September 1995, District residents authorized the first bond to fund community parks, trails and recreation. Operations commenced in Basis of Presentation The District's basic financial statements consist of government-wide financial statements, including a statement of net position and a statement of activities, and fund financial statements, which provide a more detailed level of financial information. Government-wide and Fund Financial Statements -- The government-wide financial statements report financial information on all of the activities of the District. For the most part, the effect of interfund activity has been removed from these statements. The statement of net position presents the financial position of the governmental activities of the District at year-end. The statement of activities presents a comparison between direct expenses and program revenues for each function of the District. Direct expenses are those that are specifically associated with a specific function and are clearly identified to that particular function. The District does not allocate indirect expenses to functions in the statement of activities. The statement of activities reports the expenses of a given function or segment offset by program revenues directly connected to the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses ~nd program revenues associated with a distinct functional activity. Program revenues include 1) charges to customers who directly benefit from goods or services provided by a given function or activity; 2) operating grants and contributions which finance annual operating activities, including restricted investment income; and 3) capital grants and contributions which fund the acquisition, construction, or rehabilitation of capital assets. For identifying to which function program revenue pertains, the determining factor for charges for services is which function generates the revenue. For grants and contributions, the determining factor is to which function the revenues are restricted. 20

55 NOTE 1 - (CONTINUED) Taxes, interest, and other revenue sources not properly included with program revenues are reported as general revenues. The comparison of direct expenses with program revenues identifies the extent to which each governmental function and each identifiable business activity is selffinancing or draws from the general revenues of the District. Fund Financial Statements - During the year, the District segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the District at this more detailed level. Major individual governmental funds are reported in separate columns. Fund Accounting-The District uses funds to maintain its financial records during the year. A fund is a fiscal and accounting entity with a self-balancing set of accounts. Governmental Funds - Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various gover.nmental funds according to the purposes for which they may or may not be used. Fund liabilities are assigned to the fund from which they will be liquidated. The District reports the difference between governmental fund assets and liabilities as fund balance. The District reports the following major governmental funds: The general fund is the government's main operating fund. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. The debt service fund is used to account for the accumulation of resources for the payment of principal, interest and related costs on certain general long-term debt paid primarily from taxes levied by the District. The fund balance of the Debt Service Fund is reserved to signify the amounts that are restricted exclusively for debt service expenditures. The special revenue fund is used to account for the collection and use of impact fees for parks, recreation facilities, and trails. The capital projects fund is used to account for the acquisition or construction of major capital facilities of the District. Measurement Focus Government-wide Financial Statements - The government-wide financial statements are prepared using the economic resources measurement focus. All assets and liabilities associated with the operation of the District are included on the statement of net position. The statement of activities reports revenues and expenses. Fund Financial Statements - All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the governmentwide statements and the governmental fund statements. 21

56 NOTE 1 - (CONTINUED) Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting, At the fund reporting level, governmental funds use the modified accrual basis of accounting. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of unearned revenue and in the presentation of expenses versus expenditures. Revenues- Exchange Transactions - Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recorded when the exchange takes place and in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District, the phrase " available for exchange transactions'' means expected to be received within 60 days of yearend. Revenues - Non-exchange Transactions - Non-exchange transactions in which the District receives value without directly giving equal value in return, include property tax, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the District must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions also must be available (i.e., collected by December 31, 2016 for property taxes and within 60 days for other non-exchange transactions) before it can be recognized. Unearned Revenue - Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Expenses/Expenditures - On the accrual basis of accounting, expenses are recognized at the time they are incurred, if measurable. On the modified accrual basis, expenditures are generally recognized in the accounting period in which the related fund liability is incurred and due, if measurable. Assets, liabilities and Fund Equity Cash and cash equivalents Cash includes cash on hand, demand deposits with banks and other financial institutions, and deposits in other types of accounts or cash management pools that have the general characteristics of demand deposit accounts. The District's investment policy allows for the investment of funds in time certificates of deposit with federally insured depositories, investment in the Utah Public Treasurer's Investment Fund (Fund) and other investments allowed by the State of Utah's Money Management Act. Investments are reported at fair value. The Fund operates in accordance with state laws and regulations. The reported value of the District's cash in the Fund is the same as the fair value of the Fund shares. 22

57 NOTE 1 - (CONTINUED) Cash equivalents are defined as short-term highly liquid investments that are both readily convertible to known amounts of cash and so near maturity that they present insignificant risk of changes in value because of changes in interest rates. Investments with maturities of three months or less, when purchased, meet this definition. Restricted assets Cash which is restricted to a particular use due to statutory, budgetary or bonding requirements is classified as " restricted cash" on the statement of net position and on the balance sheets. Restricted cash would be spent first and then unrestricted resources would be used when the restricted funds are depleted. Capital assets Capital assets, which include land, buildings, parks, trails, vehicles and equipment, are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost, if purchased and at fair market value at the date of the gift, if donated. Major additions are capitalized, while maintenance and repairs which do not improve or extend the life of the respective assets are charged to expense. Capital asset depreciation is recognized using the straight-line method over the estimated useful lives as follows: Classification Buildings Parks Trails Vehicles and Equipment Range of Lives years 8-40 years years 7-10 years Compensated absences Accumulated unpaid vacation is accrued as incurred based on the years of service for each employee. Vacation is accumulated on a bi-weekly basis and is fully vested when earned. Employees may carry up to one half of the vacation hours they can earn in one year over to the next year. At retirement, death, or termination, all unpaid accrued vacation is paid to the beneficiary. Governmental funds report an expenditure as the vacation is paid or at termination. Accumulated sick leave is earned at a rate of one day per month. Sick pay amounts are charged to expenditures when incurred. Employees may accumulate up to 90 days of sick leave. Qualified employees who earned sick leave prior to April 1, 2007 will be paid 100% of the sick leave they had accumulated at that date upon separation from employment. No sick leave earned after that date, but unused upon separation, will be paid. Long-term liabilities In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 23

58 NOTE 1 - (CONTINUED) Deferred Outflows/Inflows of Resources In addition to assets, financial statements will sometimes include a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. Pensions Fund equity For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Utah Retirement Systems Pension Plans (URS) and additions to/deductions from URS's fiduciary net position have been determined on the same basis as they are reported by URS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. In the fund financial statements, governmental funds report fund balances divided into five categories as follows: Non-spendable - This classification includes amounts that cannot be spent because they are either a) not in spendable form or b) legally or contractually required to be maintained. Fund balance amounts related to permanent endowments would be classified as non-spendable. Restricted - This classification includes net fund resources that are subject to external constraints that have been placed on the use of the resources either a) imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments or b) imposed by law through constitutional provisions or enabling legislation. The District's remaining balances of impact fees and debt service reserves are restricted. Committed - This classification includes amounts that can only be used for specific purposes established by formal action of the District Board, which is the District 1 s highest level of decision making authority. Fund balance commitments can only be removed or changed by the same type of action (for example, resolution) of the District Board. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The District has not committed any fund balance amounts. Assigned - This classification includes amounts that the District intends to be used for a specific purpose but are neither restricted nor committed. These are established by the District Director. This classification includes the remaining positive fund balances for governmental funds other than the general fund. 24

59 NOTE 1 - (CONTINUED) Unassigned - This classification holds the remainder of the fund equity and is the amount available for the District to spend. When faced with a choice, the district elects to use restricted, committed and assigned amounts before spending any unassigned amounts. Net position Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on its use either through legislation or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Inter-Fund Transactions During the course of normal operations, the District has transactions between funds to subsidize operations in certain funds, to allocate administrative costs, to construct assets, to distribute grant proceeds, etc. These transactions are generally reflected as operating transfers, which are transfers from a fund authorized to receive certain revenues to the fund through which the resources are to be expended. Unearned Revenue Customer fees paid in advance are shown as unearned revenue. Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Explanation of certain differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund balance sheet includes a reconclliation between total governmental fund balances and net position of governmental activities in the government-wide statement of net position. This difference primarily results from the long-term economic focus of the statement of net position versus the current financial resources focus of the governmental fund balance sheets. 25

60 NOTE 2 - (CONTINUED) Capital Asset Differences When capital assets (land and improvements) are purchased or constructed for use in governmental fund activities, the costs of those assets are reported as expenditures in the governmental funds. However, those costs are reported as capital assets in the statement of net position. The details of these differences are presented below: Land Open Space Water Shares Buildings Parks Trails Vehicles and Equipment Construction in Progress Less Accumulated Depreciation Net Capital Asset Difference $ 9,624,659 21,359,907 20,000 10,125,926 8,500,938 10,697,674 1,479,459 4,163,862 (10,553,807) $ Long-Term Liability Differences Long-Term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental fund balance sheet. All liabilities (both current and long-term) are reported in the statement of net position. The details of these differences are presented below: Compensated Absences Accrued Interest Payable General Obligation Bonds Payable $ (44,933) (81,101) (56,035,000) $ ( ) Explanation of certain differences betwe.en the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund financial statements include a reconciliation between changes in fund balances in the governmental funds and changes in net position in the government-wide statement of activities. This difference primarily results from the long-term economic focus of the statement of activities versus the current financial resource focus of the governmental fund financial statements. Capital Outlay and Depreciation Differences Capital outlays are reported as expenditures in the statement of revenues, expenditures and changes in fund balances. They are reported as capital assets, with the costs allocated over the useful lives of the assets, as depreciation, in the statement of activities. The details of these differences are reported below: Capital Outlay Depreciation Expense Net Difference $ 5,053,714 (1,282,240) $

61 NOTE 2 (CONTINUED) Long-Term Debt Issuance and Repayment Differences When long-term debt is issued it is reported as an "other financing source". Repayments are reported as expenditures in the statement of revenues, expenditures and changes in fund balance. Issuance of debt is reported as long-term liability and repayments are reported as reductions to those liabilities in the statement of activities. The details of these differences are reported below: Compensated Absences Amortization of Deferred Amount on Refunding General Obligation Bonds Repaid Net Difference $ {279) (125,745) 2,745,000 $ Other Revenue and Expense Differences The change in accrued interest payable is not reported in the statement of revenues, expenditures and changes in fund balance. The detail of this difference is reported below: Change in Pension Benefits Change in Accrued Interest Payable Change in Impact Fee Credits Net Difference $ $ 233,807 3,308 (42,978) NOTE 3 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information Budgetary procedures for the District have been established by Utah State Statute in the Fiscal Procedures Act for Utah Counties, (the Act). The Act requires counties and special districts formed by counties to adopt annual budgets. The basis of accounting applied to each fund budget is the same basis as the related fund's financial statements. In accordance with State law, all appropriations lapse at the end of the budget year, accordingly, no encumbrances are recorded. At its option the District may permit its expenditure accounts to remain open for a period of 30 days after the close of its fiscal year for the payment of approved invoices for goods received or services rendered prior to the close of the fiscal year. The District prepares a budget for the general fund. Under Utah State law, the District's budget establishes maximum legal authorization for expenditures during the fiscal year. Expenditures are not to exceed the budgeted amounts, including revisions, except as allowed by the code for certain events. A public hearing must be held to increase the total appropriations of the governmental fund. Tax Revenues Property taxes are collected by the Summit County Treasurer's Office and remitted to the District on a monthly distribution schedule. Taxes are levied and are due and payable on November 1st and are delinquent after November 30' 11 of each year, at which time they become liens if not paid. Consequently, the majority of funds are paid to the District fn the December distribution. A final settlement for "current year" collections is paid shortly after the January 15th property tax payment deadline. 27

62 NOTE 4 - DEPOSITS AND INVESTMENTS DEPOSITS Custodial Credit Risk Deposits. Custodial credit risk for deposits is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk. As of December 31, 2016, none of the District's bank balances of $147,683 were uninsured and uncollateralized. INVESTMENTS The State of Utah Money Management Council has the responsibility to advise the State Treasurer about investment policies, promote measures and rules that will assist in strengthening the banking and credit structure of the State, and review the rules adopted under the authority of the State of Utah Money Management Act that relate to the deposit and investment of public funds. The District follows the requirements of the Utah Money Management Act (Utah Code, Title 51, Chapter 7) in handling its depository and investment transactions. The Act requires the depositing of District funds in a qualified depository. The Act defines a qualified depository as any financial institution whose deposits are insured by an agency of the Federal Government and which has been certified by the State Commissioner of Financial Institutions as meeting the requirements. of the Act and adhering to the rules of the Utah Money Management Council. The Money Management Act defines the types of securities authorized as appropriate investments for the District's funds and the conditions for making investment transactions. Investment transactions may be conducted only through qualified depositories, certified dealers, or directly with issuers of the investment securities. Statutes authorize the District to invest in negotiable or nonnegotiable deposits of qualified depositories and permitted negotiable depositories; repurchase and reverse repurchase agreements; commercial paper that is classified as "first tier" by two nationally recognized statistical rating organizations; bankers' acceptances; obligations of the United States Treasury including bills, notes, and bonds; obligations, other than mortgage derivative products, issued by U.S. government sponsored enterprises (U.S. Agencies) such as the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation (Freddie Mac), and Federal National Mortgage Association (Fannie Mae); bonds, notes, and other evidence of indebtedness of political subdivisions of the State; fixed rate corporate obligations and variable rate securities rated " A" or higher, or the equivalent of "A" or higher, by two nationally recognized statistical rating organizations; shares or certificates in a money market mutual fund as defined in the Money Management Act; and the Utah State Public Treasurers' Investment Fund. The Utah State Treasurer's Office operates the Public Treasurers' Investment Fund (PTIF). The PTIF is available for investment of funds administered by any Utah public treasurer and is not registered with the SEC as an investment company. The PTIF is authorized and regulated by the Money Management Act (Utah Code, Title 51, Chapter 7). The Act established the Money Management Council which oversees the activities of the State Treasurer and the PTIF and details the types of authorized investments. Deposits in the PTIF are not insured or otherwise guaranteed by the State of Utah, and participants share proportionally in any realized gains or losses on investments. The PTIF operates and reports to participants on an amortized cost basis. The income, gains, and losses of the PTIF, net of administrative fees, are allocated based upon the participant's average daily balance. The fair value of the PTIF investment pool is approximately equal to the value of the pool shares. 28

63 NOTE 4 - (CONTINUED} Fair Value of Investments The District measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. At June 30, 2016, the District had the following recurring fair value measurements: Fair VaJue Measurements Using June 30, 2016 Level 1 Level 2 Level 3 Debt Securities Utah Public Treasurers' Investment Fund $35,337,092 $ - $35,337,092 $ - Debt and equity securities classified in Level 2 are valued using the following approach: The Utah Public Treasurers' Investment Fund uses the application of the June 30, 2016 fair value factor, as calculated by the Utah State Treasurer, to the District's average daily balance in the Fund. Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The District's policy for managing its exposure to fair value loss arising from increasing interest rates is to comply with the State's Money Management Act. Section of the Money Management Act requires that the remaining term to maturity of investments may not exceed the period of availability of the funds to be invested. The Act further limits the remaining term to maturity on all investments in commercial paper, bankers' acceptances, fixed rate negotiable deposits, and fixed rate corporate obligations to 270 days - 15 months or less. The Act further limits the remaining term to maturity on all investments in obligations of the United States Treasury; obligations issued by U.S. government sponsored enterprises; and bonds, notes, and other evidence of indebtedness of political subdivisions of the State to 5 years. In addition, variable rate negotiable deposits and variable rate securities may not have a remaining term to final maturity exceeding 3 years. At June 30, 2016, the District had the following maturities: Investment Maturities (In Years) Fair less More Investment Tvpe Value than than 5 Utah Public Treasurers' Investment Fund $35,337,092 $35,337,092 $ $ Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The District's policy for deducing its exposure to credit risk is to comply with the State's Money Management Act, as previously discussed. At June 30, 2016, the District's investments had the following quality ratings: Fair Quality Ratings Investment Type Value AAA AA A Unrated Utah Public Treasurers' Investment Fund $35,337,092 $ - $ - $ - $35,337,092 29

64 NOTE 4 - (CONTINUED) The deposits and investments described above are included on the statement of net position as per the following reconciliation: Deposits Cash on Hand Investments Total $ 118, ,337,092 $ 35,455,902 Cash and Cash Equivalents Restricted Cash and Cash Equivalents Total $ 5,502,491 29,953,411 $ 35,455,902 NOTE 5 - ACCOUNTS RECEIVABLE Property taxes were levied on January 1 of 2016, and were due in November of 2016, The property taxes that have been remitted to the District within 60 days of the end of the current fiscal period have been recognized as revenue, The uncollected, measurable amounts have been accrued as deferred revenue, All other items are considered to be measurable and available only when cash is received by the District. Property taxes of $900,006 were receivable at December 31, Of that amount $519,159 was collected by Summit County and remitted to the District within 60 days of year end, The remaining balance of $380,847 was charged but unpaid as of December 31, An additional $13,787 was receivable from other various sources at December 31, 2016, NOTE 6 - CAPITAL ASSETS The following schedule presents the capital activity of the governmental activities for the year ended December 31, 2016, Beginning Shifted Ending Balance Additions Deletions Assets Capital Assets not Balance being Depreciated Land $ 9,624,659 $ $ $ $ 9,624,659 Open Space 21,359,907 21,359,907 Water 20,000 20,000 CaQital Assets being Depreciated Buildings 10,021, ,250 10,125,926 Parks 8,447,301 53,637 8,500,938 Trails 9,753, , ,965 10,697,674 Vehicles and Equipment 1,443,131 74,890 (38,562) 1,479,459 Construction in Progress 286,956 3,987,871 (110,965} 4,163,862 Less Accumulated Depreciation (9,310,129) (1,282,240) 38,562 (10,553,807) Capital Assets, Net $51 1 6!1Z 1 1!I~ $ 3,ZZ1 1 4ZA $ $ $

65 NOTE 6 - (CONTINUED) Depreciation was charged to the functions/programs of the District as follows: Administration $ 15,990 Parks 463,586 Trails 487,266 Fieldhouse 297,606 Recreation 17,792 Total Depreciation Expense $ '.1,282,240 NOTE 7 - DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of.resources (expense/expenditure) until then. The District reports two types of deferred outflows. The District reports a deferred amount on refunding of $1, 110,637. The deferred charges on refunding resulted from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of refunded or refunding debt. The District also reports deferred outflows of resources related to pensions of $233,807. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to fut ure periods and so will not be recognized as an inflow of resources (revenue) until that time. The District has only one type of deferred inflows of resources. Property taxes of $ were unpaid in the prior year, and so were unavailable as current resources. Accordingly, these property taxes are deferred and will be recognized as an inflow of resources in the period that the amounts become available. This amount is reported in the funds balance sheet and in the government-wide statement of net position. NOTE 8 - LONG-TERM DEBT The following is a summary of changes in long-term debt of the District at December 31, 2016: Beginning Ending Due Within Balance Additions Red uctions Balance One Year General Obligation Bonds 2008 Series $ 1,365,000 $ $ (435,000) $ 930,000 $ 455, Series 4,615,000 (525,000) 4,090, , Series 18,205,000 (350,000) 17,855, , Series 3,390,000 (190,000) 3,200, , Series A 24,500,000 (1,015,000) 23,485,000 1,035, Series B 6,705,000 (230,000) 6,475,000 35,000 Compensated Absences 44, (189) 44,933 34,510 $ ,654 $ 468 $( ) $ $ 2 859,510 31

66 NOTE 8 - (CONTINUED) Long-term debt and obligations payable at December 31, 2016 were as follows: Interest Maturity Current Long-term Rate Dates Portion Balance General Obligation Recreation Bonds, Dated October 22, 2008 (original 4.00% to amount -- $10,000,000) 4.65% 2018 $ 455,000 $ 475,000 GeneraJ Obligation Recreation Bonds, Dated March 9, 2010 (original 2.00% to amount -- $5,125,000) 5.00% ,000 3,335,000 General Obligation Recreation Bonds, Dated March 2, 2011 (original 3.00% to amount -- $20,000,000) 4.75% ,000 17,490,000 General Obligation Recreation Bonds, Dated November 6, 2012 (original 0.35% to amount -- $3,810,000) 2.00% ,000 3,020,000 General Obligation Recreation Bonds, Dated February 6, 2015 (original 2.00% to amount -- $25,000,000) 3.125% ,035,000 22,450,000 General Obligation Refunding Bonds, Dated February 6, 2015 (original 2.125% to amount -- $7,385,000) 4.00% ,000 6,440,000 Compensated Absences 34,510 10,423 Total Long-term Debt $ 2,859,510 $ Principal and interest requirements to retire the District's long-term obligations are as follows: Years P rinci~al Interest 2017 $ 2,825,000 $ 1,946, ,905,000 1,866, ,005,000 1,772, ,11 0,000 1,660, ,215,000 1,552, ,835,000 6,1 88, ,350,000 2,716, ,790, ,407 Totals $ $ ,996 In prior years, the District defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District's financial statements. On December 31, 2016, $13,390,000 of bonds outstanding are considered defeased. 32

67 NOTE 9 INTERFUND TRANSFER AND LOAN RECONCILIATIONS Operating Transfers During 2016, the District transferred money from the general fund to the capital projects fund for current and planned future projects. The purpose of this transfer was to move $392,592 to the capital projects fund specifically for future capital asset replacement. The impact fee portion of the cost of trail projects of $52,303 was transferred from the impact fee fund to the capital projects fund. The interfund transfers made for these purposes were as follows: General Fund Impact Fee Fund Capital Projects Fund.Jn_ $ $ $ 444,895 lli!!_ $ 392,592 $ 52,303 $ NOTE 10 RISK MANAGEMENT Snyderville Basin Special Recreation District is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by commercial insurance purchased from independent third parties. Through December 15, 2016, the District paid an annual premium to Olympus Insurance Agency. Settled claims from these risks have not exceeded commercial insurance coverage for the past three years. NOTE 11 RETIREMENT PLANS General Information about the Pension Plan The effective date of the District's membership in the Utah State Retirement System was January 1, Plan description: Eligible plan participants are provided with defined benefit pensions through the Utah Retirement Systems (URS). The Utah Retirement Systems are comprised of the following pension trust funds: Public Employees Noncontributory Retirement System (Noncontributory System); Tier 2 Public Employees Contributory Retirement System (Tier 2 Public Employees System) is a multiple employer, cost sharing, public employee retirement system. The Tier 2 Public Employees System became effective July 1, All eligible employees beginning on or after July 1, 2011, who have no previous service credit with any of the Utah Retirement Systems, are members of the Tier 2 Retirement System. The Utah Retirement Systems {Systems) are established and governed by the respective sections of Title 49 of the Utah Code Annotated 1953, as amended. The Systems' defined benefit plans are amended statutorily by the State legislature. The Utah State Retirement Office Act in Title 49 provides for the administration of the Systems under the direction of the URS Board, whose members are appointed by the Governor. The Systems are fiduciary funds defined as pension (and other employee benefit) trust funds. URS is a component unit of the State of Utah. Trtle 49 of the Utah Code grants the authority to establish and amend the benefit terms. URS issues a publicly available financial report that can be obtained by writing Utah Retirement Systems, 560 E. 200 S., Salt lake City, Utah or visiting the website: 33

68 NOTE 11 - (CONTINUED) Benefits Provided: URS provides retirement, disability, and death benefits. Retirement benefits are as follows: Summary of Benefits by System System Noncontibutory System Tier 2 Public Employees System with actuarial reductions Final Average Salary Highest 3 years Highest 5 years Years of service Required and/or age eligible for benefit 30 years any age 25 years any age" 20 years age so 10 years age s2 4 ears a e S5 35 years any age 20 years any age so 10 years age S2" 4 years age S5 Benefit percent per year of service 2.0% per year all years 1.5% per year all years COLA- Up to4% Up to 2.5% "*All post-retirement cost-of-living adjustmen~ are non-compounding and are based on the original benefil The cost-ofliving adjustments are also limited to the actual Consumer Price Index (CPI) increase for the year, although unused CPI increases not met may be carried forward to subsequent years. Contributions: As a condition of participation in the Systems, employers and/or employees are required to contribute certain percentages of salary and wages as authorized by statute and specified by the URS Board. Contributions are actuarially determined as an amount that, when combined with employee contributions (where applicable) is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded actuarial accrued liability. Contribution rates as of December 31, 2016 are as follows: Utah Retirement Systems Paid by Employer Employer Employee Employer Contribu- Rate for Paid for Employee tion Rates 401{k} Plan Contributory System 111 Local Governmental Division - Tier 2 NIA N/A 14.91% 1.78% Noncontributory System 15 Local Governmental Division - Tier 1 N/A NIA 18.47% N/A Tier 2 DC Only 211 Locaf Government NIA N/A 6.69% 10.00% Tier 2 rates include a statutory required contribution to finance the unfunded actuarial accrued liability of the Tier 1 plans. For fiscal year ended December 31, 2016, the employer and employee contribution to the Systems were as follows: System Noncontributory System Tier 2 Public Employees System Total Contributions Employer Contributions $ 80, $ 233,807 Employee Contributions N/A NIA $ 34

69 NOTE 11 - (CONTINUED) Contributions reported are the URS Board approved required contributions by System. Contributions in the Tier 2 Systems are used to finance the unfunded liabilities in the Tier 1 Systems Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Noncontributory System Tier 2 Public Employees System Total Net Pension AssetJLiability Proportionate Share NIA NIA Net Pension Asset NIA NIA NIA Net Pension Liability NIA NIA NIA The net pension asset and liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension asset and liability was determined by an actuarial valuation as of January 1, 2015 and rolled-forward using generally accepted actuarial procedures. The proportion of the net pension asset and liability is equal to the ratio of the employer's actual contributions to the Systems during the plan year over the total of all employer contributions to the System during the plan year. At December 31, 2016, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Change in assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the measurement date Total Deferred Outflows of Resources NIA NIA N/A NIA $ 233,807 s Z Deferred Inflows of Resources NIA NIA NIA NIA $ $ NlA $233,807 was reported as deferred outflows of resources related to pensions results from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31, Thereafter Net Deferred Outflows (Inflows) of Resources NIA NIA NIA NIA NIA NIA

70 NOTE 11 - (CONTINUED) Actuarial assumptions: The total pension liability in the December 31, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return 2.75 percent percent, average, including inflation 7.50 percent, net of pension plan investment expense, including inflation Mortality rates were developed from actual experience and mortality tables, based on gender, occupation and age, as appropriate, with adjustments for future improvement in mortality based on Scale AA, a model developed by the Society of Actuaries. The actuarial assumptions used in the January 1, 2015, valuation were based on the results of an actuarial experience study for the five year period ending December 31, The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class and is applied consistently to each defined benefit pension plan. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Equity securities Debt securities Real assets Private equity Absolute return Cashandcashequ~a~nts Totals Expected Return Arithmetic Basis Real Return Long-Term Target Asset Arithmetic portfolio real Allocation Basis Rate of return 40% 7.06% 2.82% 20% 0.80% 0.16% 13% 5.10% 0.66% 9% 11.30% 1.02% 18% 3.15% 0.57% 0% 100% Inflation 0.00% 0.00% 5.23% 2.75% Expected arithmetic nominal return 7.98% The 7.50% assumed investment rate of return is comprised of an inflation rate of 2.75%, a real return of 4.75% that is net of investment expense. Discount rate: the discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that contributions from all participating employers will be made at contractually required rates that are actuarially determined and certified by the URS Board. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The discount rate does not use the Municipal Bond Index Rate. There was no change in the discount rate from the prior measurement date. 36

71 NOTE 11 - (CONTINUED) Sensitivity of the proportionate share of the net pension asset and liability to changes in discount r~te: The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.50 percent, as well as what the proportionate share of the net pension liability woufd be if it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage - point higher (8.50 percent) than the current rate: System Noncontributory System Tier 2 Public Employees System Total 1% Decrease (6.50%) N/A N/A N/A Discount Rate (7.50%) N/A N/A N/A 1% Increase (8.50%) N/A N/A NIA Pension plan fiduciary net position: Detailed information about the pensions plan's fiduciary net position is available in the separately issued URS financial report. NOTE 12 - DEFINED CONTRIBUTION SAVINGS PLANS The Oefined Contribution Saving Plans are administered by the Utah Retirement Systems Board and are generally supplemental plans to the basic retirement benefits of the Retirement Systems, but may also be used as a primary retirement plan. These plans are voluntary tax advantaged retirement savings programs authorized under section 401(k), 457(b), and 408 of the Internal Revenue code. Detailed information regarding plan provisions is available in the separately issued URS financial report. The Snyderville Basin Special Recreation District participates in the following Defined Contribution Savings Plans with Utah Retirement Systems: *401 (k) Plan *457(b) Plan rraditional IRA Plan Employee and employer contribution to the Utah Retirement Defined Contribution Saving Plans for fiscal year ended December 31, were as follows: 401(k) Plan Employer Contributions $18,300 $ 0 $ 0 Employee Contributions $ 2,224 $ 0 $ 0 457(b) Plan Employer Contributions $ 0 $ 0 $ 0 Employee Contributions $ 150 $ 0 $ 0 Traditional IRA Employer Contributions NIA N/A N/A Employee Contributions $ 450 $ 0 $ 0 37

72 NOTE 13 -DEFERRED COMPENSATION PLANS Through November of 2016, the District sponsored a defined contribution deferred compensation plan under the Internal Revenue Code Section 401 (a) for permanent full-time employees and permanent part-time employees. The deferred compensation was not available until termination, retirement, death, or unforeseeable emergency. The 401(a) deferred compensation monies were not available to the District or its general creditors. The District's contributions for each employee (and interest allocated to the employee's account) are fully vested in the employee's account from the date of employment. For qualified full-time and qualified part-time employees, the District contributed 12.0% and 6.0%, respectively, of their annual salary. During the years ended December 31, 2016, 2015 and 2014 contributions totaling $29,491, $175,202, and $150,091 respectively, were made to the plan by the District. The plan has been terminated and contributions ceased on February 2.2, 2016 due to the District joining the Utah Retirement System. Through 2016, the District sponsored a defined contribution deferred compensation plan under the Internal Revenue Code Section 457 for participating employees. The plan, available to certain full-time employees, permitted them to defer a portion of their salary until future years. The deferred compensation was not available to employees until termination, retirement, death, or unforeseeable emergency. The 457 deferred compensation monies were not available to the District or its general creditors. During the years ended December 31, 2016 and 2015 contributions totaling $97,764 and $79,165, respectively, were made to the plan by employees. NOTE 14 INTERLOCAL AGREEMENT WITH PARK CITY SCHOOL DISTRICT The District entered into a Lease and Joint Use Agreement - Middle School Facilities for Recreation in 1996 to lease acres of land at Ecker Hill Middle School from Park City School District (PCSD). The lease is for thirty years, with a twenty-year option to renew at a cost of $1 per year. The District fulfilled its capital obligations required by the agreement, by contributing $1,327,000 for field development, community pool enhancements and additional parking space at the school. Additionally, the District constructed field support buildings, which include park equipment storage and restrooms, made hardscape improvements, and expanded the field space at the Ecker Hill Field Complex. Improvements were made at the sole expense of the District within an area subject to the Jong-term lease agreement. These capital expenditures are shown as capital assets of the PCSD and are not included in the District's financial statements. The total capital contributions to PCSD as of December 31, 2016 amounted to $2,107,396. The District has fulfilled its capital obligations to PCSD. In addition to the Lease Agreement, the District and PCSD entered into an Agreement for Use of School Facilities for Recreation to provide for the shared use of facilities and amenities between the two entities and to designate the rights and responsibilities of each party regarding the shared use. Subsequently, the District, PCSD and Park City Municipal Corporation (PCMC or City) adopted a three-way Joint Use Agreement for Recreation in May The three parties desired to clarify and augment existing agreements, including the aforementioned Lease and Joint Use Agreement - Middle School Facilities for Recreation. Additionally, the agreement encouraged the joint use of fields and facilities and established procedures for cooperative working relationships between the parties. 38

73 NOTE 15 INTERLOCAL AGREEMENT WITH PARK CITY FOR A REGIONAL ICE FACILITY The District and PCMC entered into an interlocal cooperative agreement to construct a regional ice facility in August In the agreement, the parties recognized the value in combining financial resources to jointly construct, maintain, and operate the ice facility. The parties also recognized the challenges of having multiple parties involved in the construction and operation of the facility. Given the nature of a larger proposed City-owned recreation complex, of which the ice rink is just one component, the parties agreed that the City shall solely own the facility (located on City-owned land near the State Route 248/Highway 40 interchange at Quinn's Junction). Also, no title or interest in the City-owned real property upon which the Ice Facility is located will transfer or otherwise vest in the District as a result of the agreement. Each party agreed to fund $2,000,000 toward the design, planning, construction and initial outfitting of the rink and this payment by the District was made in March Substantial completion of the Park City Ice Arena occurred in February 2006 and the rink, operated by PCMC, opened for business. As part of the agreement, the District agreed to budget for and contribute a minimum of $50,000 per fiscal year toward operational costs of the facility in the first two years, after which the contribution will be placed in a Capital Replacement Reserve Fund (CRRF) by Park City. Payments have been made each year since December 2005 and are due no later than December 15 each year. The District and PCMC review the agreement every three (3) years. The District Board reserves the right to modify the annual distribution at the time of the next third year review in Either party has the right to request renegotiation of the agreement at any time. NOTE 16 -OPEN SPACE ACQUISITION The Basin Open Space Advisory Committee (BOSAC) was established by the Summit County Commission on May 14, 2003 for the purpose of creating a consortium of interests and agencies to review, prioritize and recommend potential recreational open space purchases. The District holds one voting seat on this committee. BOSAC developed selection criteria to evaluate open space land acquisition opportunities in the Snyderville Basin for recommendation to the Summit County Council (Council) to meet collective community goals of recreational open space preservation. In the District's amended Recreation and Trails Master Plan, the role of the District and its relationship with Summit County (County) and BOSAC in matters of recreational open space acquisition is clarified. The District's Master Plan is the recreation element of the Snyderville Basin General Plan. The Snyderville Basin General Plan, most recently updated in February 2014, acknowledges the preservation of open space that contains critical lands, recreational, cultural, and scenic spaces. The General Plan makes a distinction between " pristine," " managed recreational," and " active open space." Public funds for recreational open space are acquired using the voter authorized tax levy for bonds sold through the District, along with private donations through trusts and the public. The District serves as the sole taxing entity in the Snyderville Basin with the ability to fund open space purchased through general obligation bonds. Purchased open lands come with a perpetual interest to allow public trail access. Recreational open space acquired with District funds may be protected under a third-party conservation easement provided public trail access to the open space is preserved. Typically, conservation easements permit the right to construct and maintain non-motorized trails for use by the public in perpetuity, including the installation of trail signage and low impact trail related improvements. They also permit the relocation of existing trails in the interest of connecting the system to adjoining future open space parcels and trail corridors. 39

74 NOTE 16 - (CONTINUED) On February 20, 2008, the Council adopted a resolution authorizing the sale of up to $10,000,000 General Obligation Recreation Bonds for the District, as authorized by voters in The District issued the full $10,000,000 to finance the costs of acquiring recreational open space property negotiated by BOSAC, and pay the costs and expenses incident to the issuance and sale of the Bonds. On November 12, 2008, the District and the County entered into an lnterlocal Cooperation Agreement "For Distribution of Funds and Expenditure and Use of Open Space Bond Proceeds" which fully described the terms and conditions to acquire two major open space parcels. The District retains a contractual interest in the perpetual uses this cooperative investment provides to taxpayers of the District and the County. Public trail improvements will be constructed and maintained by the District in these open space areas. Additionally, the District purchased half of the open space parcel known as the "Koleman Park Parnel" from the County, consisting of approximately 10 acres to be used for future play fields, plus a road right of way to access the site. The purchase price negotiated for the park land was $1,000,000 and was paid for out of the District's impact fee fund. However, the purchase price negotiated and paid by the County to the property owner for the "Koleman Property" in its entirety was $5,000,000. Because the District holds fee title to 50% of the land, the value of this asset is recorded as $2,500,000. The Matt Knoop Memorial Park has since been built on the District's portion of the parcel. On November 2, 2010, electors voted to approve issuance of $20,000,000 General Obligation Bonds for the purpose of financing $12,000,000 to acquire recreational open space property negotiated by BOSAC and $8,000,000 for trails construction and trail-related improvements. 72% of voters were in favor of the issuance. The District issued the full $20,000,000 and bonds were sold in March With these funds, the District Board approved the purctiase of a conservation easement on 1,268 acres of land at Hi-Ute Ranch 3-Mile Canyon for $2.8 million. The Conservation Easement Option contemplates an eventual Fee Purchase Option. The District Board also approved a contribution of $450,000 to Summit Land Conservancy as a contribution towards a conservation easement on the Osguthorpe 120 open space parcel in A 7.89% interest in the Conservation Easement Deed and Agreement was assigned to the District, as a qualified "co-holder" of the easement with PCMC and Summit Land Conservancy. In May 2012, the District and the County entered into a Real Estate Purchase and Settlement Agreement with Nadine Gillmor for the purchase of 292 acres of recreational open space land. The purchase price of $7,425,000 was paid using $6,000,000 of the District's Recreational Open Space Bond Funds paid to seller at closing along with a $1,425,000 promissory note due in In December 2012, the District, the County, and PCMC agreed to collaborate with Utah Open Lands to preserve 781 acres of open space in Toll Canyon at a cost of $6, 100,000. The acquisition involved several steps, one of which was selling the 292 acres of open space acquired from Nadine Gillmor to PCMC. The proceeds of the sale by the District to PCMC paid off the outstanding promissory note and provided additional funding for Toll Canyon. In addition to the cash exchanged for the Gillmor property, PCMC conveyed to the County its interest, valued at approximately $3,500,000, in the Kimball Junction open space near the entrance to the Utah Olympic Park. In conjunction with the Gillmor transaction, the County conveyed to the District 63% of the Kimball Junction open space valued at approximately $10, 100,000. The closing for the Toll Canyon transaction occurred in December As the agreement outlined, the District holds the title and Utah Open Lands hold the conservation easement on Toll Canyon. 40

75 NOTE 16 - (CONTINUED) On November 4, 2014, electors voted to approve issuance of $25,000,000 General Obligation Bonds for the purpose of financing $15,000,000 to acquir~ recreational open space property, $8,000,0000 for recreation facilities, and $2,000,000 for trails construction and trail-related improvements. 71.8% of voters were in favor of issuance. The District issued the full $25,000,000 and bonds were sold in March The Council, governing body of the District, using BOSAC recommendations, is actively pursuing open space opportunities throughout the District's jurisdiction. NOTE 17 - BOND RATING The most recent review of the District by rating agencies was prior to the sale of the 2015 bonds. Moody's Investors assigned an Aa1 rating to the District while Standard and Poor's Ra.ting Services assigned an AAA rating to the District. The increased ratings allowed the District to borrow at the lowest possible rates for the 2015 Series A bond issuance and the 2015 Series B refunding bond iss uance. NOTE 18-WATER ENTITLEMENTS In a separate transaction related to the Toll Canyon acquisition, Utah Open Lands conveyed water right entitlements and water source entitlements tied to the Toll Canyon property to the District in February The District then entered into a Water Transfer and Banking Agreement with Mountain Regional Water Special Service District (MRW) on August 7, This agreement transferred water source entitlements to MRW in return for impact fee source credits. The District utilized 1.57 acre feet of the water source entitlements in 2013 and 2.64 in The remaining impact fee source credits are now valued at approximately $31,913. The agreement also transferred water right entitlements to MRW in exchange for water right impact fee credits acre feet of credits, valued at December 31, 2016 at approximately $189,650, will not be recognized and available to the District until the Utah State Engineer grants use of the water rights in a MRW source; the application is currently pending. NOTE19-SUBSEQUENTEVENTS In preparing these financial statements, the District has evaluated events and transactions for potential recognition or disclosure through May 1, 2017, the date the financial statements were available to be issued. The Silver Creek Village Development Agreement included a land dedication of approximately 80 acres to the District for a community park, trails and open space. The developer filed its Phase I Plat in April, thus triggering the dedication of the land to the District. This acquisition will be reflected in the 2017 financial statements. 41

76 REQUIRED SUPPLEMENTARY INFORMATION

77 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2016 Budgeted Amounts Variance Actual with Final Original Final Amounts Budget REVENUES Taxes $ 3,295,239 $ 3,340,087 $ 3,383,055 $ 42,968 Grants 35,000 35,000 45,000 10,000 Charges for Services 1,438,404 1,412,400 1,452,971 40,571 Interest 12,000 15,718 15, Miscellaneous 500 5,132 5,133 1 TOT AL REVENUES 4,781,143 4,808,337 4,901,919 93,582 EXPENDITURES Administration 1,045,757 1,320,885 1,177, ,982 Parks 917, , , ,519 Trails 743, , ,642 80,012 Fieldhouse 1,278,420 1,189,878 1,120, ,767 Recreation 663, , ,514 39,849 TOT AL EXPENDITURES 4,649,314 4,690,745 4,257, ,129 EXCESS (DEFICIT) OF REVENU ES OVER EXPENDITURES 131, , , ,711 OTHER FINANCING SOURCES {USES} Park City Ice Arena (50,000) (50,000) (50,000) Transfers to Other Funds (81,829) (392,592) (392,592) EXCESS (DEFICIT) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES $. $ { ) $ 201,711 $ 526,711 42

78 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT BUDGETARY COMPARISON SCHEDULE SPECIAL REVENUE FUND FOR THE YEAR ENDED DECEMBER 31, 2016 Budgeted Amounts Variance Actual with Final Original Final Amounts Budget REVENUES Impact Fees $ 575,000 $ 575,000 $ 526,939 $ (48,061) Interest 12,760 12,760 22,927 10,167 TOT AL REVENUES 587, , ,866 (37,894) EXPENDITURES Capital Outlay TOTAL EXPENDITURES EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES 587, , ,866 (37,894) OTHER FINANCING SOURCES {USES) Transfers to Other Funds (1,427,000) ( 1,427,000) (52,303) 1,374,697 EXCESS (DEFICIT) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES $ ~839,240) $ {839,240) $ 497,563 $ 1,336,803 43

79 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT NOTES TO THE BUDGETARY COMPARISON SCHEDULES FOR THE YEAR ENDED DECEMBER 31, 2016 Budgetary Comparison Schedule The Budgetary Comparison Schedules presented in this section of the report are for the District's General and Special Revenue Funds. Budgeting and Budgetary Control The budgets for the General and Special Revenue Funds are legally required and are prepared and adopted on the modified accrual basis of accounting. Original budgets represent the revenue estimates and spending authority authorized by the District Board prior to the beginning of the year. Final budgets represent the original budget amounts plus any amendments made to the budget during the year by the District Board through formal resolution. Final budgets do not include unexpended balances from the prior year because such balances automatically lapse to unreserved fund balance at the end of each year. 44

80 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS DECEMBER 31, 2015 Last 10 Fiscal Years* Proportion of the net pension liability (asset) Non- Contributory System % Tier 2 Public Employees System % Proportionate share of the net pension liability (asset) Covered employee payroll $ $ - $ - $ Proportionate share of the net pension liability (asset) as a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability 0.0% 0.0% 0.0% 0.0% In accordance with paragraph 80.a of GASS 68, employers will need to disclose a 10-year history of their proportionate share of the Net Pension Liability (Asset) in the required supplementary information. The 10-year schedule will be built prospectively. The schedule above is only for the current year. The District did not begin participating in the plan until

81 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS DECEMBER 31, 2016 Last 10 Fiscal Years Actuarial determined contributions 2014 $ 2015 $ 2016 $ Noncontributory System Tier 2 Public Employees System.. - $ - $ 80,515 $ 153,292 Contributions in relation to the contractually required contribution 2014 $ - $ 2015 $ - $ 2016 $ 80,515 $ 153,292 Contribution deficiency (excess) Covered employee payroll 2014 $ - $ 2015 $ - $ 2016 $ - $ 2014 $ - $ 2015 $ - $ 2016 $ 435,923 $ 1,023,115 Contributions as a percentage of covered-employee payroll % 0.00% 18.47% 0.00% 0.00% 14.98% Amounts presented were determined as of calendar year January 1 - December 31. The District will be required to prospectively develop this table in future years to show 10 years of information. The schedule above is only for the past three years. Contributions as a percentage of covered payroll may be different than the board certified rate due to rounding and other administrative issues. Contributions in Tier 2 include an amortization rate to help fund the unfunded liabilities in the Tier 1 Systems. Tier 2 Systems were created effective July 1,

82 SNYDERVILLE BASIN SPECIAL RECREATION DISTRICT NOTES TO THE PENSION SCHEDULES UTAH RETIREMENT SYSTEMS DECEMBER 31, 2016 Changes in Assumptions Related To Pensions Regarding the Schedule of the Proportionate Share of the Net Pension Liability and the Schedule of Contributions presented in this section, the following assumption changes were adopted from the most recent actuarial experience study: There was a decrease in the wage inflation assumption for all employee groups from 3.75% to 3.50%. Also, there was a modification to the rate of salary increases for most groups. The payroll growth assumption was decreased from 3.5% to 3.25%. There was an improvement in the post-retirement mortality assumption for female educators and minor adjustments to the pre-retirement mortality assumption. Additional changes to certain demographic assumptions, generally, resulted in the following: (1) more members are anticipated to to terminate employment prior to retirement, (2) slightly fewer members are expected to become disabled, and (3) members are expected to retire at a slightly later age. 47

83 STATE COMPLIANCE REPORT

84 GREG OGDEN, CPA 1761 EAST 850 SOUTH SPRINGVILLE, UT (801) MeMBER OF TH AMERICAN IN STIT UT~ OF C ERTIFIED PUBLIC A CCOUNTA N T6 INDEPENDENT AUDITOR'S REPORT IN ACCORDANCE WITH THE STATE COMPLIANCE AUDIT GUIDE ON: COMPLIANCE WITH GENERAL STATE COMPLIANCE REQUIREMENTS INTERNAL CONTROL OVER COMPLIANCE Board of Directors Snyderville Basin Special Recreation District REPORT ON COMPLIANCE WITH GENERAL STATE COMPLIANCE REQUIREMENTS I have audited Snyderville Basin Special Recreation District (District), a component unit of Summit County, Utah's compliance with the applicable general state compliance requirements described in the State Compliance Audit Guide, issued by the Office of the Utah State Auditor, that could have a direct and material effect on the District for the year ended December 31, General state compliance requirements were tested for the year ended December 31, 2016 in the following areas: Budgetary Compliance Fund Balance Utah Retirement Systems Open and Public Meetings Act Treasurer's Bond Cash Management Impact Fees Management's Responsibility Management is responsible for compliance with the general state requirements referred to above. Auditor's Responsibility My responsibility is to express an opinion on the District's compliance based on my audit of the compliance requirements referred to above. I conducted my audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the State Compliance Audit Guide. Those standards and the State Compliance Audit Guide require that I plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on the District occurred. An audit includes examining, on a test basis, evidence about the District's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. 48 THE CPA. NEVER UNDERESTIMATE THE VALUE.

85 I believe that my audit provides a reasonable basis for my opinion on compliance with general state compliance requirements. However, my audit does not provide a legal determination of the District's compliance, Opinion on General State Compliance Requirements In my opinion, Snyderville Basin Special Recreation District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the District for the year ended December 31, REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of the District is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing my audit of compliance, I considered the District's internal control over compliance with the compliance requirements that could have a direct and material effect on the District to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance with general state compliance requirements and to test and report on internal control over compliance in accordance with the State Compliance Audit Guide, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, I do not express an opinion on the effectiveness of the District's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions to prevent, or detect and correct, noncompliance with a general state compliance requirement on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a general state compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a general state compliance requirement that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. My consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. I did not identify any deficiencies in internal control over compliance that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of Report The purpose of this report on internal control over compliance is solely to describe the scope of my testing of internal control and compliance and the results of that testing based on the requirements of the State Compliance Audit Guide. Accordingly, this report is not suitable for any other purpose. Certified Pub May 1, 2017 CPA 49

86 GOVERNMENT AUDITING STANDARDS REPORT

87 GREG OGDEN, CPA 1761 EAST 850 SOUTH SPRINGVILLE, UT (801) MEMBER OF T HE AMERICAN INSTITUTE OF CERTIFIED Pueuc ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE ANO OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Snyderville Basin Special Recreation District I have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Snyderville Basin Special Recreation District (District), a component unit of Summit County, Utah, as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued my report thereon dated May 1, Internal Control over Financial Reporting In planning and performing my audit of the financial statements, I considered the Distri.ct's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, I do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. My consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during my audit I did not identify any deficiencies in internal control that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 50 THE CPA. NEVER UNDERESTIMATE THE VALUE'.