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Home My WebLink About20132943.tiffPIONEER METROPOLITAN DISTRICT NO. 3 Weld County, Colorado FINANCIAL STATEMENTS December 31, 2012 2013-2943 l0/›1//3 TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT BASIC FINANCIAL STATEMENTS Government -wide Financial Statements 1 Statement of Net Position 2 Statement of Activities Fund Financial Statements 3 Balance Sheet - Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of 5 Net Activities General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 6 Notes to Financial Statements 7 SUPPLEMENTAL INFORMATION 26 Debt Service Fund - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 27 Capital Projects Fund - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 28 SIMMONS & WHEELER, P.C. Certified Public Accountants 8005 South Chester Street, Suite 150, Centennial, CO 80112 (303) 689.0833, Fax (303) 689-0834 Board of Directors Pioneer Metropolitan District No. 3 Weld County, Colorado Independent Auditors' Report We have audited the accompanying financial statements of the governmental activities and each major fund of the Pioneer Metropolitan District No. 3, as of and for the year ended December 31, 2012, which collectively comprise the District's basic financial statements as listed in the table of contents, and the related notes to the financial statements. 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 Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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 District'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 District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our 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 Pioneer Metropolitan District No. 3 as of December 31, 2012, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other -Matters Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinions on the basic financial statements are not affected by this missing information. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Pioneer Metropolitan District No. 3's financial statements as a whole. The supplemental information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements. The supplemental information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. 1 h+ j Centennial, CO October 4, 2013 i-LuLead Pa. li BASIC FINANCIAL STATEMENTS PIONEER METROPOLITAN DISTRICT NO.3 STATEMENT OF NET POSITION December 31, 2012 Governmental Activities ASSETS Cash and investments Cash and investments - Restricted Total current assets Capital assets Total assets LIABILITIES Accounts payable Accrued interest payable Noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Developer advance Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position $ 8,212 1,726,383 1,734,595 583,440 2,318,035 670,868 38,042 4,150,000 4,858,910 8,333 8,333 234,823 (2,784,031) $ (2,549,208) These financial statements should be read only in connection with the accompanying notes to financial statements. 1 am Revenues it 01 ?mu gl / Functions/Programs oo en Tr el• CC NC) MD 64 cse 69 te oo cg en DO VD 1/40 0 On 0 TM C .0 \\\cd- h � (©®_§du \k / 0 \ ±g) 3 en 0,7 49 en tn 69 oo en oo 00 eg en 00 CN1 ON IS, C0 Cr, re an 69 CA C 0 0 §\\ \/k�\C `a)\)) )'®°°00 }z zz PIONEER METROPOLITAN DISTRICT NO.3 BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2012 ASSETS Cash and investments Cash and investments - Restricted Total assets LIABILITIES Accounts payable Total liabilities DEFERRED INFLOWS OF RESOURCES Developer advance Total deferred inflows of resources FUND BALANCES Restricted for: Debt service Assigned for: Capital projects Unassigned Total fund balances TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES AND FUND BALANCES General Total Debt Capital Governmental Service Projects Funds $ 8,212 $ $ $ 8,212 4 1,726,379 1,726,383 $ 8,212 $ 4 $ 1,726,379 $ 1,734,595 $ 18,087 $ $ 652,781 $ 670,868 18,087 652,781 670,868 8,333 8,333 8,333 - 8,333 (18,208) (18,208) 4 - 4 1,073,598 1,073,598 (18,208) 4 1,073,598 1,055,394 $ 8,212 $ 4 $ 1,726,379 Amounts reported for governmental activities in the statement of net position are different because: Capital assets are recorded as assets on the Statement of Net Position, but are recorded as expenditures in the funds. Capital outlay Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. Bonds payable Accrued interest on bonds payable These financial statements should be read only in connection with the accompanying notes to financial statements. 3 583,440 (4,150,000) (38,042) $ (2,549,208) PIONEER METROPOLITAN DISTRICT NO.3 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2012 REVENUES Developer advances Net investment income Total revenues EXPENDITURES General Accounting Costs of issuance Engineering Insurance and dues Interest expense Keenesburg Cost Agreement Legal services Repay Developer advances Repayment of assumed obligations Capital outlay Water rights Total expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES General $ 5,441 $ 16 5,457 6,232 11,793 20,123 Total Debt Capital Governmental Service Projects Funds $ 239,781 $ 245,222 14 108 138 14 239,889 245,360 282,776 6,232 12,464 367,371 367,371 141,574 (41,574 11,793 72,853 355,629 26,977 26,977 171,407 191,530 299,665 299,665 1,364,143 1,364,143 583,440 583,440 38,148 282,776 3,033,662 3,354,586 (32,691) (282,762) (2,793,773) (3,109,226) OTHER FINANCING SOURCES (USES) Transfers to other fund (137) (282,629) (282,766) Transfers from other fund 282,766 282,766 Bond proceeds - 4,150,000 4,150,000 Total other financing sources (uses) (137) 282,766 3,867,371 4,150,000 NET CHANGE IN FUND BALANCES (32,828) FUND BALANCES - BEGINNING OF YEAR 4 1,073,598 1,040,774 14,620 - 14,620 FUND BALANCES - END OF YEAR $ (18,208) 4 $ 1,073,598 $ 1,055,394 These financial statements should be read only in connection with the accompanying notes to financial statements. 4 PIONEER METROPOLITAN DISTRICT NO.3 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ACTIVITIES Year Ended December 31, 2012 Net changes in fund balances - Total governmental funds $ 1,040,774 Amounts reported for governmental activities in the statement of net activities are different because: Long-term debt (e.g., bonds, Developer advances) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and related items is as follows: Bond issuance Developer advances Repayment of Developer advances Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Capital outlay Accrued interest on bonds - Change in liability (4,150,000) (245,222) 299,665 583,440 (38,042) Change in net position of governmental activities $ (2,509,385) These financial statements should be read only in connection with the accompanying notes to financial statements. PIONEER METROPOLITAN DISTRICT NO.3 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL December 31, 2012 Variance - Budget Amounts Positive Original Final Actual (Negative) REVENUES Interest income Developer advance Total revenues EXPENDITURES Accounting Insurance and dues Legal services Contingency Total expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Transfers to other fund Total other financing sources $ $ $ 16 $ 16 20,351 70,351 5,441 (64,910) 20,351 70,351 5,457 (64,894) 15,000 35,000 6,232 28,768 6,500 6,500 11,793 (5,293) 20,000 45,000 20,123 24,877 8,500 13,500 - 13,500 50,000 100,000 38,148 61,852 (29,649) (29,649) (32,691) (3,042) (137) (137) (137) (137) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING (USES) (29,649) (29,649) (32,828) (3,179) FUND BALANCES - BEGINNING OF YEAR 29,649 29,649 14,620 (15,029) FUND BALANCES- END OF YEAR $ - $ $ (18,208) $ (18,208) These financial statements should be read only in connection with the accompanying notes to financial statements. 6 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 1 - DEFINITION OF REPORTING ENTITY Pioneer Metropolitan District No. 3 (District), a quasi -municipal corporation and political subdivision of the State of Colorado, was organized by court order and recorded with the Weld County Clerk and Recorder on August 29, 2006 and is governed pursuant to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The District's service area is located in Weld County, Colorado. The District was organized to provide financing for the design, acquisition, construction and installation and maintenance of essential public -purpose facilities, such as water, sanitation, storm drainage, streets, safety protection, park and recreation, transportation, television relay and translation, mosquito control, and limited fire protection. Pursuant to an Order to Amend Order for Exclusion Nunc Pro T unc January 12, 2012 (the Amended Order), the District Court of Weld County, State of Colorado, ordered the exclusion of approximately 975,949 acres of land more particularly described in paragraph 4 of the Amended Order owned by HP Farms Holdings LLC and Pioneer Communities Holdings LLC. Pursuant to the Amended Order and Section 32-1-503(1), C.R.S. the property shall remain subject to the levy of taxes for the payment of its proportionate share of any indebtedness of the District and the interest thereon outstanding immediately prior to the effective date of the Amended Order (January 12, 2012), but shall not be subject to any property tax levied by the District for operating costs of any bonded indebtedness created after the effective date of the Amended Order. The District follows the Governmental Accounting Standards Board (GASB) accounting pronouncements which provide guidance for determining which governmental activities, organizations and functions should be included within the financial reporting entity. GASB pronouncements set forth the financial accountability of a governmental organization's elected governing body as the basic criterion for including a possible component governmental organization in a primary government's legal entity. Financial accountability includes, but is not limited to, appointment of a voting majority of the organization's governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens and fiscal dependency. The District is not financially accountable for any other organization, nor is the District a component unit of any other primary governmental entity. The District has no employees and all operations and administrative functions are contracted. 7 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant accounting policies of the District are described as follows: Government -wide and Fund Financial Statements The government -wide financial statements include the statement of net position and the statement of activities. These financial statements include all of the activities of the District. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. The statement of net position reports all financial and capital resources of the District. The difference between the assets and liabilities of the District is reported as net position. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The major sources of revenue susceptible to accrual are District property taxes and interest. All other revenue items are considered to be measurable and available only when cash is received by the District. The District determined that Developer advances are not considered as revenue susceptible to accrual. Expenditures, other than interest on long-term obligations, are recorded when the liability is incurred or the long-term obligation is due. 8 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the governmental funds. The Capital Projects Fund is used to account for financial resources to be used for the acquisition and construction of capital equipment and facilities. Budgets In accordance with the State Budget Law of Colorado, the District's Board of Directors holds public hearings in the fall of each year to approve the budget and appropriate the funds for the ensuing year. The appropriation is at the total fund expenditures level and lapses at year end. The District's Board of Directors can modify the budget by line item within the total appropriation without notification. The appropriation can only be modified upon completion of notification and publication requirements. The budget includes each fund on its basis of accounting unless otherwise indicated. Supplementary appropriations approved by the District modified the 2012 appropriations from $50,000 to $100,000 in the General Fund, from $0 to $300,000 in the Debt Service Fund, and from $0 to $4,370,000 in the Capital Projects Fund. Pooled Cash and Investments The District follows the practice of pooling cash and investments of all funds to maximize investment earnings. Except when required by trust or other agreements, all cash is deposited to and disbursed from a single bank account. Cash in excess of immediate operating requirements is pooled for deposit and investment flexibility. Investment earnings are allocated periodically to the participating funds based upon each fund's average equity balance in the total cash. Investments arc carricd at fair value. 9 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Taxes Property taxes are levied by the District's Board of Directors. The levy is based on assessed valuations determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners to put the tax lien on the individual properties as of January 1 of the following year. The County Treasurer collects the determined taxes during the ensuing calendar year. The taxes are payable by April or if in equal installments, at the taxpayer's election, in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. The County Treasurer remits the taxes collected monthly to the District. Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred revenue in the year they are levied and measurable. The deferred property tax revenues are recorded as revenue in the year they are available or collected. Capital Assets Capital assets are reported in the applicable governmental activities column in the government - wide financial statements. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. Water Rights The cost of water rights includes acquisition cost, legal and engineering costs related to the development and augmentation of those rights. Since the rights have a perpetual life, they are not amortized. All other costs, including costs incurred for the protection of those rights, are expensed. Fund Equity Fund balance for governmental funds should be reported in classifications that comprise a hierarchy based on the extent to which the government is bound to honor constraints on the specific purposes for which spending can occur. Governmental funds report up to five classifications of fund balance: nonspendable, restricted, committed, assigned, and unassigned. Because circumstances differ among governments, not every government or every governmental fund will present all of these components. The following classifications describe the relative strength of the spending constraints: 10 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • Nonsperulable fund balance — The portion of fund balance that cannot be spent because it is either not in spendable form (such as prepaid amounts or inventory) or legally or contractually required to be maintained intact. • Restricted fund balance — The portion of fund balance that is constrained to being used for a specific purpose by external parties (such as bondholders), constitutional provisions, or enabling legislation. • Committed fund balance — The portion of fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision -making authority, the Board of Directors. The constraint may be removed or changed only through formal action of the Board of Directors. • Assigned fund balance — The portion of fund balance that is constrained by the government's intent to be used for specific purposes, but is neither restricted nor committed. Intent is expressed by the Board of Directors to be used for a specific purpose. Constraints imposed on the use of assigned amounts are more easily removed or modified than those imposed on amounts that are classified as committed. • Unassigned fund balance — The residual portion of fund balance that does not meet any of the criteria described above. If more than one classification of fund balance is available for use when an expenditure is incurred, it is the District's policy to use the most restrictive classification first. Deficits The following individual fund has a deficit reported in the fund financial statements as of December 31, 2012: General Fund $ (I A, Zp3) It is anticipated that this deficit will be eliminated with the payment of intergovernmental revenue in future years. New Accounting Pronouncements Effective January 1, 2012, the District implemented the provisions of GASB No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position" (GASB No. 63) and early implemented the provisions of GASB No. 65, "Items Previously Reported as Assets and Liabilities" (GASB No. 65). 11 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) GASB No. 63 provides guidance for reporting deferred outflows and deferred inflows of resources as introduced and defined in GASB Concepts Statement No. 4 "Elements of Financial Statements" (Concepts Statement No. 4). Concepts Statement No. 4 defines a deferred outflow of resources as a consumption of net assets that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net assets applicable to a future reporting period. The impact on the District's financial statements has been to replace the term "net assets" with "net position". Additionally, the District's Developer advance is treated as a deferred inflow of resources. GASB No. 65 establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets or liabilities. Some assets previously reported as assets are now reported as an outflow of resources/expenses. One of these assets is debt issuance costs. NOTE 3 - CASH AND INVESTMENTS Cash and investments as of December 31, 2012 are classified in the accompanying financial statements as follows: Statement of net position: Cash and investments Cash and investments - Restricted Total cash and investments Cash and investments as of December 31, 2012 consist of the following: Investments Total cash and investments Investments The District's policy is to follow state statutes regarding investments. $ 8,212 1726.383 734 595 $ 1,734,595 $ 1,734 595 The District generally limits its concentration of investments to those noted with an asterisk (*) below, which are believed to have minimal credit risk, minimal interest rate risk and no foreign currency risk. Additionally, the District is not subject to concentration risk disclosure requirements or subject to investment custodial credit risk for investments that are in the possession of another party. 12 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 3 - CASH AND INVESTMENTS (CONTINUED) Colorado revised statutes limit investment maturities to five years or less unless formally approved by the Board of Directors. Such actions are generally associated with a debt service reserve or sinking fund requirements. Revenue bonds of local government securities, corporate and bank securities, and guaranteed investment contracts not purchased with bond proceeds, are limited to maturities of three years or less. Colorado statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include: Obligations of the United States, certain U.S. government agency securities and securities of the World Bank General obligation and revenue bonds of U.S. local government entities Certain certificates of participation Certain securities lending agreements Bankers' acceptances of certain banks Commercial paper Written repurchase agreements and certain reverse repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts Local government investment pools As of December 31, 2012, the District had the following investments: Investment Maturity Fair Value Colorado Surplus Asset Fund Trust (CSAFE) Weighted average under 60 days $ 8,212 Federated Prime Obligation Fund 1,726,383 L1,734 595 13 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 3 - CASH AND INVESTMENTS (CONTINUED) CSAFE The District invested in the Colorado Surplus Asset Fund Trust (CSAFE), which is an investment vehicle established by state statute for local government entities to pool surplus assets. The State Securities Commissioner administers and enforces all State statutes governing CSAFE. CSAFE is similar to a money market fund, with each share valued at $1.00. CSAFE may invest in U.S. Treasury securities, repurchase agreements collateralized by U.S. Treasury securities, certain money market funds and highest rated commercial paper. A designated custodial bank serves as custodian for CSAFE's portfolio pursuant to a custodian agreement. The custodian acts as safekeeping agent for CSAFE's investment portfolio and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by CSAFE. CSAFE is rated AAAm by Standard & Poor's. Federated Prime Obligations Fund The capital projects money that is included in the trust accounts at United Missouri Bank is invested in the Federated Prime Obligations Fund. This portfolio is a money market mutual fund which invests primarily in short-term, high -quality, fixed -income securities issued by banks, corporations and the U.S. government, rated in the highest short-term category or of comparable quality, with maturities of 13 months or less. The Federated Prime Obligations Fund is rated AAAm by Standard & Poor's. NOTE 4 - CAPITAL ASSETS The following is an analysis of the changes in capital assets for the year ended December 31, 2012. Balance at Balance at December 31, December 31 2011 Increases Decreases 2012 Capital assets, not being depreciated: Water rights Governmental activities capital assets 14 $ 583,440 $ - $ 583,440 $ 583,440 $ - $ 583,440 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 5 - LONG-TERM OBLIGATIONS The following is an analysis of the changes in the District's long-term obligations for the year ended December 31, 2012. Balance at Retirement of Balance at Due December 31, Long -Term December 31, Within 2011 Additions Obligations 2012 One Year O. O. Bonds - Series 2012 $ Developer advance 4,150,000 $ 54,443 245,222 299,665 54,443 $ 4,395,222 $ 299,665 $ 4,150,000 $ $ 4,150,000 $ The detail of the District's long-term obligations are as follows: $4,150,000 Limited Tax General Obligation Bonds, Taxable Series 2012, dated April 1, 2012, were issued for the purposes of (1) financing the costs of designing, acquiring, constructing, and installing certain public infrastructure and assets; (2) reimbursing a portion of capital costs, organizational expenses and operating expenditures; (3) providing capitalized interest for the payment of a portion of the interest on the Bonds; and (4) paying the costs of issuance of the Bonds. The Bonds are term bonds payable annually on December 1 with final maturity on December 1, 2037 bearing interest of 11.00% payable semiannually on June 1 and December 1. The Bonds are subject to redemption prior to maturity, at the option of the District on December 1, 2015, and on any date thereafter, upon payment of par and accrued interest, without redemption premium. The Bonds are also subject to mandatory excess funds redemption on December 1 of each year, upon payment of par and accrued interest, without redemption premium, to the extent of any funds in the Redemption Account of the Bond Fund. Notwithstanding the foregoing, no redemption of the Bonds shall occur unless and until the Surplus Fund has an amount equal to the Required Surplus (defined below) amount. The Bonds are secured by and payable solely from Pledged Revenue consisting of monies derived by the District from the following sources, net of any collection costs: (1) the Required Mill Levy, (2) amounts payable to the District by other Districts under the Capital Pledge Agreements; (3) the Pledged Capital Fees (if any); and (4) the portion of the Specific Ownership Tax which is collected as a result of the imposition of the Required Mill Levy. Required Mill Levy means an ad valorem tax levied against all taxable property of the District each year in the amount of 50 mills (Required Mill Levy). 15 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED) Capital Pledge Agreements Each of Pioneer Metropolitan District Nos. 2, 4 and 5 entered into Capital Pledge Agreements with the District (collectively, the Capital Pledge Agreements) on April 18, 2012. Under such Capital Pledge Agreements, each of District Nos. 2, 4 and 5 covenant to levy an ad valorem mill levy each year upon all taxable property of each of such Districts in the amount of 50 mills. The Districts will transfer all ad valorem tax revenue derived from such levy and all Specific Ownership Tax revenue allocable to such levy to the District for payment on the Series 2012 Bonds and funding of the Surplus Fund. The Bonds are also secured by amounts accumulated in the Surplus Fund. The Surplus Fund was not funded upon the issuance of the Bonds, but rather will accumulate up to the amount of the Required Surplus of $830,000 to the extent of the receipt of Pledged Revenue in excess of the amount required to pay debt service on the Bonds. As of December 31, 2012, no monies were in the Surplus Fund. The District's long-term obligations are payable solely from Pledged Revenue and the amounts thereof cannot be determined. Authorized Debt On May 2, 2006 a majority of the qualified electors of the District who voted in the election authorized the issuance of indebtedness in an amount not to exceed $3,680,000,000 . On May 4, 2010, a majority of the qualified electors of the District who voted in the election authorized the issuance of indebtedness in an amount not to exceed $3,680,000,000 . At December 31, 2012, the District had authorized but unissued indebtedness in the following amounts allocated for the following purposes: 16 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED) Streets Water Sanitary sewer Parks and recreation Traffic and safety Mosquito control Public transportation Fire protection Television relay and translation Operations and maintenance Debt refunding Intergovernmental contracts Debt Authorized May 2, 2006 $ 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 50,000,000 330,000,000 330,000,000 $ 3,680,000,000 Debt Authorized May 4, 2010 Authorization Used for Series 2012 Bonds $ 330,000,000 $ 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 330,000,000 50,000,000 330,000,000 330,000,000 $ 3,680,000,000 $ 4,150,000 3,695,000 145,000 310,000 Issuance of future debt is subject to the terms of the Service Plan. Operation Funding Agreement Authorized But Unissued $ 660,000,000 656,305,000 659,855,000 660,000,000 660,000,000 660,000,000 660,000,000 660,000,000 660,000,000 99,690,000 660,000,000 660,000,000 $ 7,355,850,000 On March 26, 2008, the District entered into an Operation Funding Agreement with Pioneer Communities Holdings LLC ("Pioneer Holdings") and Quebec Corp. ("Quebec") (the "2007- 2008 OFA") which terminated that certain 2006-2007 Operation Funding Agreement dated November 8, 2006 by and between the District and Pioneer Communities Inc. (the "2006-2007 OFA"). Per the 2007-2008 OFA, the District and Pioneer Communities Inc. agreed to direct all amounts due for reimbursement pursuant to the 2006-2007 OFA be paid to Pioneer Holdings (the "2007 Reimbursement Amount"). Per the 2007-2008 OFA, Quebec agreed to advance funds to the District for the payment of operations and maintenance expenses from November 1, 2007 through December 31, 2007 and for fiscal year 2008 (the "Funding Period") up to $50,000. The District agreed to repay the amounts advanced pursuant to this Agreement, to the extent it has funds available from the imposition of its taxes, fees, rates, tolls, penalties, and charges and for any other revenue legally available, after the payment of its annual debt service obligations and annual operations and maintenance expenses, which repayment is subject to annual budget and appropriation. Simple interest shall accrue on the 2007 Reimbursement Amount from 17 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED) November 1, 2007 and on each Developer Advance from the date of deposit into the District's account, until paid, at the rate of eight percent (8.0%) per annum. Payments to reimburse any Developer Advances shall be applied as follows: (a) first to Pioneer Holdings, the 2007 Reimbursement Amount principal amount due and then to Pioneer Holdings, the 2007 Reimbursement Amount accrued and unpaid interest due; and (b) second to Quebec, the principal amount due and then to the accrued and unpaid interest due to Quebec. Any obligation of Quebec to advance funds will expire after any amounts due under the 2007-2008 OFA for operations and maintenance costs incurred for the Funding Period and requested on or before May 15, 2009, have been paid in full. Any obligation of the District to reimburse Pioneer Holdings and/or Quebec shall expire on December 31, 2048. In the event the District has not reimbursed Pioneer Holdings and/or Quebec for any Developer Advance(s) made pursuant to the 2007-2008 OFA on or before December 31, 2048, any amount of principal and accrued interest outstanding on such date shall be discharged and satisfied in full. As of December 31, 2012, all advances from Pioneer Holdings and Quebec have been repaid. NOTE 6 - NET POSITION The District's net position consists of two components — net investment in capital assets, and unrestricted. Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. 50% of the proceeds from the issuance of the Series 2012 Bonds were used for non-capitalizable costs. Therefore, only 50% of the bond proceeds will be spent on capital assets. As of December 31, 2012, the District had net investment in capital assets calculated as follows: Net investment in capital assets Capital assets, net 50% of noncurrent portion of outstanding long-term obligations Unspent bond proceeds Net investment in capital assets 18 $ 583,440 (2,075,000) 1,726,383 $ 234,823 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 6 - NET POSITION (CONTINUED) The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets. The District's unrestricted net position as of December 31, 2012 totaled $(2,784,031). This deficit amount was the result of the District being responsible for the repayment of bonds issued for public improvement. NOTE 7 - RELATED PARTY The members of the Board of Directors are employees, owners or are otherwise associated with HP Farms Holding LLC, Pioneer Communities Holdings LLC and Pioneer Holdco, LLC (collectively, the Property Owners) and Gateway American Resources LLC (the Developer). The Property Owners and the Developer may have conflicts of interest in dealing with the District. One of the members of the Board of Directors is also associated with PV Water Holdings LLC (PV). On December 10, 2012, PV sold to the District 171.6 acre feet of Larimer Fox Hills Aquifer water underlying areas 9, 10, 11 and 13 more particularly described in that certain Colorado Ground Water Findings and Order entered April 14, 2009 in Determination No. 2037 - BD, and recorded on September 28, 2009 as Reception No. 3651094 of the books of the Weld County Clerk and Recorder. The purchase price of the water rights was $583,440. Subsequent to year end, on June 10, 2013, PV sold to the District 60.8 acre feet of Larimer Fox Hills Aquifer water underlying area 6, as more particularly described in that certain Colorado Ground Water Findings and Order entered April 14, 2009 in Determination No. 2037 -BD, and recorded on September 28, 2009 as Reception No. 3651094 of the books of the Weld County Clerk and Recorder. PV also sold to the District 26.8 acre feet of Arapahoe Aquifer water underlying area 5 and 20.1 acre feet of Arapahoe Aquifer water underlying area 6, as more particularly described in that certain Colorado Ground Water Findings and Order entered April 14, 2009 in Determination No. 2038 -BD, and recorded on September 28, 2009 as Reception No. 3651094 of the books of the Weld County Clerk and Recorder. The purchase price of all the above water rights was $284,260. 19 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 8- AGREEMENTS Memorandum of Understanding As contemplated by the Service Plan, Pioneer Regional Metropolitan District ("Pioneer Regional") was designated as the "Service District" and Districts Nos. 1 through 6, inclusive, were designated as the "Financing Districts." The Service Plans for the Service District and each of the Financing Districts provided that the Service District and the Financing Districts would enter into a Facilities Funding Construction and Operations Agreement (the "FFCO") in order to establish the rights and obligations of the Service District and Financing Districts to provide for the financing, construction, operation, and maintenance of certain public infrastructure required for the planned future development within the Districts (the "Future Development"). Prior to completing discussions on the terms of the FFCO, the Service District and the Financing Districts entered into a Memorandum of Understanding (the "MOU") dated November 12, 2008 (as amended March 26, 2012), by and among Pioneer Metropolitan District Nos. 2 through 6 and Pioneer Regional, whereby the Service District was granted the authority to enter into the Keenesburg Agreement (defined below), and, in addition to the Keenesburg obligation, the Financing Districts agreed to reimburse the Service District for certain expenses incurred by the Service District for the benefit of each of the Financing Districts. Such expenses are those incurred by the Service District in connection with the organization and administration of the Districts, District No. I and District No. 6, and in the planning and designing of improvements to serve the Future Development (the "Reimbursable Costs"), as defined therein. The MOU was amended on March 26, 2012, to release the Districts from their obligations under the MOU and to allow the Districts to enter in to the 2012 FFCO (defined below) as contemplated by the Service Plans for the Districts. The amendment to the MOU, however, contemplates that the FFCO will be amended in the future to ensure transition and/or use of any public improvements constructed thereunder to Pioneer Regional as the Service District. Facilities Funding Construction and Operations Agreement As anticipated by the amendment to the MOU as noted above, on March 26, 2012, the District entered into a Facilities Funding, Construction and Operations Agreement with Pioneer Metropolitan District Nos. 2, 4, and 5, (the "2012 FFCO"). Pursuant to the 2012 FFCO, the District is generally responsible for coordinating the financing, construction, ownership, operation and maintenance of public improvements, while District No. 2, 4, and 5, serving as the "financing districts" are generally responsible for producing property tax and other revenue sufficient to pay the costs of operations and debt service expenses incurred for the purpose of providing such improvements and services. 20 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 8 - AGREEMENTS (CONTINUED) In addition, the District, in its capacity as the "Coordinating District" under the FFCO has agreed to pay the Reimbursable Costs and will assume Pioneer Regional's obligations under the Keenesburg Agreement allowing the Future Development to continue to have the Keenesburg water transmission source available. The 2012 FFCO allows for a future amendment to include Pioneer Regional, District No. 1 and District No. 6 to ensure transition and/or use of any public improvements constructed thereunder to Pioneer Regional, as the provider of services to end users within the Districts, and the eventual transition to each of the Districts to provide services to its future residents and/or commercial users. Keenesburg Agreement (Pipeline) In furtherance of its responsibilities under the MOU and of bringing water to the Future Development, Pioneer Regional entered into that certain Agreement dated April 17, 2008 with the Town of Keenesburg (the "Town") (as amended, the "Keenesburg Agreement") which allows Pioneer Regional the use of capacity in a water pipeline built by the Town (the "Keenesburg Pipeline") for use by the Future Development provided that yearly payments are made by Pioneer Regional to the Town for reimbursement of a portion of the Town's costs in constructing the Keenesburg Pipeline. Pioneer Regional and the District determined that it was in the bests interests of the future residents of the Districts for the District to assume the obligations and obtain the rights of Pioneer Regional under the Keenesburg Agreement. The Town, Pioneer Regional, and the District, entered into that certain First Amendment to and Assignment of Agreement, dated May 1, 2012 (the "Amended Keenesburg Agreement", collectively with the Keenesburg Agreement the, "Keenesburg Agreement"), wherein Pioneer Regional assigned all of its rights and obligations in the Keenesburg Agreement to the District and wherein the parties revised the use of the Keenesburg Pipeline. Annual payments of $50,478.86 were due to Keenesburg beginning May 25, 2008 through May 25, 2010. Pursuant to the First Amendment to and Assignment of Agreement, annual payments of $63,098.58 are due to Keenesburg on May 25 in years 2013 through 2032. Pioneer Community Reimbursement IGA In accordance with the MOU, Pioneer Regional incurred certain costs on behalf of the Financing Districts. Pursuant to the Intergovernmental Agreement Regarding Assignment of Reimbursement Obligations; Consent to Construction; and Collection of Regional Mill Levy dated as of March 26, 2012 between Pioneer Regional and the District (the "Pioneer Community Reimbursement IGA"), Pioneer Regional assigned to the District certain obligations it had with respect to the Reimbursement Obligations and Organization Costs and Services (each, as defined 21 PIONEER METROPOLITAN DISTRICT NO. 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 8 - AGREEMENTS (CONTINUED) therein) which are collectively referred to therein as the "Pioneer Community Reimbursement Obligations." Pioneer Regional has agreed to adjust the formula in determining its rates to be charged to end users in the Future Development in exchange for the District assuming the Pioneer Community Reimbursement Obligations. Pioneer Regional is obligated to provide water and wastewater service to the future residents and commercial development of the Districts. As noted above, in exchange for the District's assumption of the Pioneer Community Reimbursement Obligations, Pioneer Regional agreed that it will adjust the calculation considered in establishing its rate structure so that no charges are passed along that would have otherwise been assessed as a result of Pioneer Regional's former obligations pursuant to the MOU. This is expected to result in a decrease in the tap fee rates ultimately payable for connection to water and wastewater systems for service. Under the Pioneer Community Reimbursement IGA, Pioneer Regional agreed that it will not object to the District's construction of (or causing the construction of) future water and wastewater infrastructure that would otherwise be the responsibility of Pioneer Regional pursuant to its Service Plan. The District agreed to give Pioneer Regional advance written notice prior to constructing any water and wastewater improvements. In addition, pursuant to the First Amendment to the MOU and the Pioneer Community Reimbursement IGA, Pioneer Regional and the District will enter into an agreement prior to the connection of any resident to water or wastewater service to ensure Pioneer Regional has adequate access to such infrastructure to provide the services contemplated under its Service Plan and to establish an orderly transition of the use and ownership of the improvements to each of the Districts. Finally, each of the Districts will be obligated to impose a regional improvements mill levy (the "Regional Mill Levy"), the proceeds of which are to be remitted to Pioneer Regional to be used for the provision of regional water and wastewater improvements. Pursuant to the Pioneer Regional Community Reimbursement IGA, the District will cause each of the other Districts to impose the Regional Mill Levy and will collect and remit the revenue derived from such levy to Pioneer Regional. Pioneer Regional is to use such revenue for payment of its on -going operations expenses and certain reimbursement obligations which were retained by Pioneer Regional and not assigned to or assumed by the District and for any other purpose authorized by its Service Plan. 22 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 8 - AGREEMENTS (CONTINUED) Resource Colorado Water and Sanitation Metropolitan District Reimbursement IGA The District, Resource Colorado Water and Sanitation Metropolitan District ("Resource"), Resource Colorado Water and Sanitation District acting by and through Resource Colorado and Water Sanitation District acting by and through Resource Colorado Water and Sanitation District GAR Water Activity Enterprise No. 1("Enterprise No. 1"), and Resource Colorado Water and Sanitation District acting by and through Resource Colorado Water and Sanitation District Water Activity Enterprise (the "Original Enterprise"), entered into that certain Intergovernmental Agreement Regarding Assignment of Reimbursement Obligations and Consent to Construction on April 19, 2012 ("Resource IGA"). Pursuant to the Resource IGA, Resource, the Original Enterprise, and Enterprise No. I agree to assign, and the District agrees to assume, their respective responsibilities for repayment of those reimbursement obligations pursuant to those certain Gateway American Resources Operation Funding Agreements, the Quebec Corp. Operation Funding Agreements, the Gateway American Resources Project Funding Agreement and the Quebec Corp. Project Funding Agreement (as defined therein) (the "Reimbursement Obligations"). In exchange, Resource, the Original Enterprise, and Enterprise No. 1 agree not to include the costs incurred in any rate structure for service established by Resource, the Original Enterprise or Enterprise No. 1 for future services provided to the Districts' service area (the "Pioneer Community"). In addition, pursuant to the Resource IGA, Resource on behalf of itself and the Pioneer Community Enterprise consents to and agrees that it will not object to the District's construction, or causing such construction to be done, in the future, of water infrastructure that may be construed as a Resource and/or Pioneer Community Enterprise obligation under Resource's Service Plan provided the District gives Resource advance written notice together with a copy of the construction plans prior to commencement of such construction. Further, the Parties agree that if the District undertakes any water or sewer infrastructure construction, it will enter into an agreement with Pioneer Regional as contemplated in the First Amendment to MOU between Pioneer Regional and Pioneer prior to the connection of a resident for water or sewer service to a Pioneer Regional Improvement to ensure both Pioneer Regional (as the contracting entity with Resource) and Resource have adequate access to such infrastructure to provide its services under its respective Service Plan and such that Resource can satisfy the terms and provisions of the Will Serve Letter (defined therein). 23 PIONEER METROPOLITAN DISTRICT NO, 3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 8 - AGREEMENTS (CONTINUED) Repayment of Assumed Obligations Pursuant to the Pioneer Community Reimbursement IGA and the Resource IGA, the District assumed the Pioneer Community Reimbursement Obligations and the Resource Obligations and repaid the Developers $978,179 in principal and $385,964 in interest at the rate of 8.0% during 2012. The obligations of each District and the interest thereon assumed by the District are as follows: Organizational Operating Project Accrued Costs Costs Soft Costs Interest Total Pioneer Regional $ 68,000 $ 26,812 $ 100,958 $ 60,786 $ 256,556 Pioneer No. 2 15,100 14,691 - 10,709 40,500 Pioneer No. 4 15,100 12,991 10,092 38,183 PioneerNo.5 15,200 13,091 10,164 38,455 Resource 268,390 136,752 291,094 294,213 990,449 $ 381,790 $ 204,337 $ 392,052 $ 385,964 $ 1,364,143 NOTE 9 - INTERFUND AND OPERATING TRANSFERS The transfer of $282,629 from the Capital Projects Fund to the Debt Service Fund and $137 from the General Fund to the Debt Service Fund were related to capitalized interest derived from the 2012 Bonds proceeds. NOTE 10 - RISK MANAGEMENT The District is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees, or acts of God. The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as of December 31, 2012. The Pool is an organization created by intergovernmental agreement to provide property, liability, public officials liability, boiler and machinery and workers compensation coverage to its members. Settled claims have not exceeded this coverage in any of the past three fiscal years_ 24 PIONEER METROPOLITAN DISTRICT NO.3 NOTES TO FINANCIAL STATEMENTS December 31, 2012 NOTE 10 - RISK MANAGEMENT (CONTINUED) The District pays annual premiums to the Pool for liability, property and public officials liability coverage. In the event aggregated losses incurred by the Pool exceed amounts recoverable from reinsurance contracts and funds accumulated by the Pool, the Pool may require additional contributions from the Pool members. Any excess funds which the Pool determines are not needed for purposes of the Pool may be returned to the members pursuant to a distribution formula. NOTE 11 - TAX, SPENDING AND DEBT LIMITATIONS Article X, Section 20 of the Colorado Constitution, referred to as the Taxpayer's Bill of Rights (TABOR) contains tax, spending, revenue and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year's Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. On May 2, 2006, the electorate approved the removal of limitations imposed by the TABOR Amendment and any other law that purports to limit the District's revenue or expenditures, a $10,000,000 annual property tax increase for operations, a $330,000,000 annual property tax increase for intergovernmental agreements, and a $330,000,000 annual property tax increase for regional improvements. TABOR requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The District's management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits, will require judicial interpretation. This information is an integral part of the accompanying financial statements. 25 SUPPLEMENTAL INFORMATION 26 PIONEER METROPOLITAN DISTRICT NO.3 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Year Ended December 31, 2012 Variance - Budget Amounts Positive Original Final Actual (Negative) REVENUES Miscellaneous Interest income Total revenues EXPENDITURES Interest expense - Bonds Contingency Total expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers from other fund Total other financing sources (uses) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING (USES) FUND BALANCES - BEGINNING OF YEAR 20,672 $ - $ (20,672) 14 14 20,672 14 (20,658) 279,328 282,776 (3,448) 20,672 - 20,672 300,000 282,776 17,224 (279,328) (282,762) (3,434) 279,328 282,766 3,438 279,328 282,766 3,438 4 4 FUND BALANCES - END OF YEAR $ $ $ 4 $ 4 27 PIONEER METROPOLITAN DISTRICT NO.3 CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Year Ended December 31, 2012 Variance - Budget Amounts Positive Original Final Actual (Negative) REVENUES Interest income Bond proceeds Developer advance Total revenues EXPENDITURES Accounting Keenesburg Cost Agreement Legal services Engineering Costs of issuance Interest expense Repay Developer advance Repayment of assumed obligations Capital outlay Water rights Total expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers to other fund Total other financing sources (uses) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING (USES) FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR $ $ $ 108 $ 108 4,120,000 4,150,000 30,000 250,000 239,781 (10,219) 4,370,000 4,389,889 19,889 6,232 (6,232) 26,977 (26,977) 171,407 (171,407) 141,574 (141,574) 340,672 367,371 (26,699) 72,853 (72,853) 299,665 (299,665) 1,364,143 (1,364,143) 3,750,000 583,440 3,166,560 4,090,672 3,033,662 1,057,010 279,328 1,356,227 1,076,899 (279,328) (282,629) (3,301) (279,328) (282,629) (3,301) 1,073,598 1,073,598 $ $ 1,073,598 $ 1,073,598 28 Hello