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HomeMy WebLinkAbout20112613.tiff M`Geady Sisneros P.C. 400 MGEADY SISNEROS Denver, `olorad 8020 -121 C Denver,Colorado 80203-1214 303.592.4380 tel 303.592.4385 fax www.mcgeadysisneros.com September 27, 2011 VIA EMAIL AND CERTIFIED MAIL RETURN RECEIPT REQUESTED Ms. Esther Gesick Clerk to the Weld County BOCC P.O. Box 758 Greeley, CO 80632 Re: Resource Colorado Water and Sanitation Metropolitan District Dear Ms. Gesick: Enclosed please find executed copies of the 2009 and 2010 Annual Reports To Southern Weld Advisory Board regarding the above-captioned District. I apologize in the delay in filing these reports. In the past, these reports have been filed in December, but going forward we will be filing them at the end of July, which coincides with the filing of the Service Plan Annual Report. If you have any questions, please contact me. Thank you. Very truly yours, MCGEADY SISNEROS,P.C. Ca Han— Jen if�nry Paralegal cc: Southern Weld County Advisory Board(via email only) Board of Directors-Resource Colorado(via email only) Jason Carroll, Clifton Gunderson, LLP(via email only) Lisa Johnson and Karen Steggs, Special District Management Services, Inc. (via email only) GjmXYVJxita. � >n 1OGj1\ 2011-2613 {00207933.DOC v:l } Spc,laa RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2009 ANNUAL REPORT TO SOUTHERN WELD ADVISORY BOARD Pursuant to Section II.C of the Service Plan as approved by the Board of County Commissioners of Weld County, Colorado on August 25, 2004, the Resource Colorado Water and Sanitation Metropolitan District ("District") is required to provide, on an annual basis, the following report to the Southern Weld Advisory Board. Additional questions regarding the information set forth in this report may be directed to the office of the District Manager, Resource Colorado Water and Sanitation Metropolitan District, 141 Union Blvd., Lakewood, CO 80228, (303) 987-0835, during regular business hours and pursuant to the Rules and Regulations adopted by the District. All information provided in this summary is through December 31, 2009. 1. Capital Improvement Progress Report. (a) Summary of Description and Mapping of Completed Improvements from Date of Organization through December 31 of the Year Prior to the Year of the Report. No improvements were completed as of December 31, 2009. Please see response in 1(b) below. (b) Summary of Description and Drawing of Improvements Proposed to be Constructed within 36 Months of January 1 of the Year of the Report ("Three Year CIP Plan"). A Three Year CIP Plan was not prepared by the District as of December 31, 2009, as preliminary planning and engineering was not completed as of year-end. Since its organization in 2004 through December 31, 2009, the District has been focusing on planning, engineering, administrative and legal matters related to the provision of water and wastewater improvements and services to service providers in Weld County. Among the proposed service providers that the District is expected to service are the Pioneer Regional Metropolitan District and Pioneer Metropolitan Districts Nos.l —6 (collectively, the "Pioneer Districts"). The Service Plans for the Pioneer Districts were approved by Weld County on February 6, 2006. During 2009, the District continued with the engineering and planning aspects of wastewater service for the Pioneer Districts, including exploring the feasibility of providing coordinated wastewater services with other service providers. The utility plan and application for site location for the wastewater treatment facility that was submitted to the North Front Range Water Quality Planning Association (the "Association") on November 16, 2006, received conditional approval of the Association on April 26, 2007. No further activities regarding the wastewater treatment facilities were undertaken by the District as of December 31, 2009. With respect to water service, in February of 2006,the District filed in Water Division No. 1, an application for determination of rights to ground water in the not nontributary Arapahoe Aquifer underlying approximately 650 acres and in the nontributary Larmie-Fox Hills Aquifer underlying approximately 5,668 acres, which acreages overlap. A decree granting the {00207115.DOCv:1 } application was entered on December 29, 2006 entitling the District to withdraw 5.7 acre feet per year from the not nontributary Arapahoe Aquifer and 1,281.9 acre feet per year from the nontributary Laramie-Fox Hills Aquifer subject to the terms of the decree. The District filed an Application for approval of a plan for augmentation including claims for conditional ground water rights, storage rights, change of water rights and appropriative rights of exchange in Case No. 06CW256, Water Division No. 1 on December 14, 2006. As of September 20, 2010 this case was dismissed. With respect to providing service to other service providers, the District completed the sale of Well 31652FP and associated water rights to the Town of Keenesburg ("Town") on July 26, 2006. The District entered into an intergovernmental agreement with the Town on December 7, 2006 regarding joint use and cost sharing for the pipeline and related facilities servicing said well. See Exhibit E herein for a complete listing of the agreements associated with this transaction. The District anticipates preparing the Three Year CIP Plan in conjunction with an overall feasibility study and comprehensive plan for water and wastewater services. The District anticipates that the Three Year CIP Plan may be available in 2012. (c) Summary of Infrastructure Phasing and Schedules of Improvements Described in Three Year CIP Plan. Please see response in 1(b) above. 2. District Financial Reporting. (a) Annual Budget for Year of Report. See Exhibit A attached hereto. (b) Annual Audit of Financial Statements for the Fiscal Year Ending December 31 of the Year Prior to the Year of the Report. The District filed an application for exemption from audit for the year ended December 31, 2009, a copy of which is attached hereto as Exhibit B. (c) Summary of Total Debt Outstanding and Remaining Amounts of Authorized but Unissued Debt Authorization. See Exhibit C attached hereto. 3. Operations Reporting. (a) Current Rules and Regulations. The District's current Rules and Regulations were submitted with the 2007 Annual Report. Please see Exhibit D attached hereto, a copy of Resolution No. 2009-12-01 Regarding the Amendment of the District's Rules and Regulations. (b) Changes to District's Taxing Boundary or Service Area Boundary, as such Terms are Defined in District's Service Plan. There have been no changes to the District's taxing boundary or Service Area boundary, as such terms are defined in District's Service Plan from the date of organization through December 31, 2009. {00207115.DOC v:1 ) (c) Copies of Executed Intergovernmental Agreements. See Exhibit E attached hereto. (d) Names and Terms of Board Members and Contact Information. Vacant Term expires: 2012 Vacant Term expires: 2012 John"Mick" Todd 2313 17th St. Greeley, CO 80634 Telephone: (970) 352-4980 Term expires: 2012 Toni L. Serra Gateway American Resources 9033 E. Easter Ave., Suite 112 Centennial, CO 80112 Telephone: (720) 362-5995 Fax: (720) 362-7116 Term expires: 2014 Joel H. Farkas Gateway American Resources 9033 E. Easter Ave., Suite 112 Centennial, CO 80112 Telephone: (720) 362-5995 Fax: (720) 362-7116 Term expires: 2014 (e) Schedule and Locations of Regular Board Meetings. Meetings are scheduled as needed and usually held at the District Management office, 141 Union Boulevard, Suite 150, Lakewood, CO. {00207115.DOC r.I } (f) Summary of any Outstanding Litigation. The District has filed an Application for approval of a plan for augmentation in Case No. 06CW256, Water Division No. 1 as described in Section 1(b)herein,which case was dismissed as of September 20, 2010. Respectfully submitted this 'oti'day of`"'1'}nyl '2011. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT By: �� Toni Serra, President Attest: By: Name: "Met ar ac Title: Asst. Sec r r (00207115.DOC v:1 EXHIBIT A 2009 Budget {00207115.DOC v:l RESOURC COLORADO WATER AND SA TATION 01 METROPOLITAN DISTRICT 141 Union Boulevard,Suite 150 Lakewood, Colorado 80228-1898 Tel: 303-987-0835 • 800-741-3254 Fax:303-987-2032 January 30, 2009 Division of Local Government 1313 Sherman Street, Room 520 Denver, Colorado 80203 Re: Resource Colorado Water and Sanitation Metropolitan District Ladies and Gentlemen: Enclosed is the 2009 Budget as certified by the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District of Weld County, Colorado, submitted pursuant to Section 29-1-113 , C.R.S . If there are any questions on the Budget, please contact Lisa A. Johnson, District Manager, at (303) 987-0835 . Sincerely, Marina Wilson Assistant to Lisa A. Johnson District Manager Enclosure cc: McGeady Sisneros, P. C. - Sharon Pellowe Clifton Gunderson LLP CERTIFICATION OF BUDGET TO: THE DIVISION OF LOCAL GOVERNMENT This is to certify that the budget, attached hereto, is a true and accurate copy of the budget for Resource Colorado Water and Sanitation Metropolitan District, for the budget year ending December 31, 2009 as adopted on November 12, 2008 . IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of Resource. Colorado Water and Sanitation Metropolitan District in Weld County, Colorado, this 12th day of November, 2008 .8,0 SAN,J �� By: o ?s Secr ary c WELD COUNTY o attecoo Se K_.,... 5OS38 i04° Clifton '71 Gunderson LLP Certified Public Accountants&Consultants Accountant's Report Board of Directors Resource Colorado Water and Sanitation Metropolitan District Weld County, Colorado We have compiled the accompanying forecasted budget of revenue, expenditures, and fund balance/funds available of the Resource Colorado Water and Sanitation Metropolitan District for the General and Enterprise Funds for the year ending December 31, 2009, including the forecasted estimate of comparative information for the year ending December 31, 2008, in accordance with attestation standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of forecast information that is the representation of management and does not include evaluation of the support for the assumptions underlying the forecast. We have not examined the forecast and, accordingly, do not express an opinion or any other form of assurance on the accompanying budget of revenue, expenditures, and fund balance/funds available or assumptions. Furthermore, there will usually be differences between the forecasted and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events or circumstances occurring after the date of this report. The actual historical information for the year 2007 is presented for comparative purposes only. Such information is taken from the Application for Exemption from Audit of the District for the year ended December 31, 2007. Management has elected to omit the summary of significant accounting policies required by the guidelines for presentation of a forecast established by the American Institute of Certified Public Accountants. If the omitted disclosures were included in the forecast, they might influence the user's conclusions about the District's results of operations for the forecasted periods. Accordingly,this forecast is not designed for those who are not informed about such matters, We are not independent with respect to the Resource Colorado Water and Sanitation Metropolitan District. a0161— C4) Greenwood Village, Colorado November 26, 2008 Milli • RESOURCE COLORADO WATER AND SANITATION METRO DISTRICT SUMMARY FORECASTED 2009 BUDGET AS ADOPTED WITH 2007 ACTUAL AND 2008 ESTIMATED For the Years Ended and Ending December 31, 11/26/2008 Page 2 ACTUAL ESTIMATED ADOPTED 2007 2008 2009 Np BEGINNING FUND BALANCE/FUNDS AVAILABLE $ (6,587) $ (51,417) $ 184 REVENUE Investment income 182 150 100 Water sales - - - Other income - 3,189 - Developer advance 244,000 228,262 213,000 Total revenue 244,182 231,601 213,100 TRANSFERS IN - 1,986 - Total funds available 237,595 182,170 213,284 EXPENDITURES General Accounting 16,926 21,000 29,000 Audit 3,680 - 4,000 Director fees - 3,500 3,500 District management 21,117 22,000 28,000 Engineering and consulting 48,274 56,000 50,000 Election costs - 1,130 - Insurance 3,151 1,770 3,000 Legal 110,668 50,000 60,000 South Weld Advisory Board - 10,000 10,000 Miscellaneous 792 3,000 2,000 Payroll taxes - 268 268 Water purchases - - Watersystem 22,111 2,800 - Raw water lines- Lost Creek - - - Non-tributory wells-Box Elder - - - Sewer line - - - - Wastewater treatment plant 62,293 - - Contingency - 8,532 23,232 Total expenditures 289,032 180,000 213,000 TRANSFERS OUT - 1,986 - Total expenditures and transfers out requiring appropriation 289,012 181,986 213,000 ENDING FUND BALANCE/FUNDS AVAILABLE $ (51,417) $ 184 $ 284 This financial information should be read only in connection with the accompanying accountants report and summary of significant assumotions. RESOURCE COLORADO WATER AND SANITATION METRO DISTRICT PROPERTY TAX SUMMARY INFORMATION For the Years Ended and Ending December 31, 11/262008 Page 3 ACTUAL ESTIMATED ADOPTED 2007 2008 2009 ASSESSED VALUATION- WELD COUNTY Residential $ - $ - $ - Commercial - - - Agricultural 20,330 21,290 21,290 State assessed - - - Vacant land - - - Personal property - - - 20,330 21,290 21,290 Adjustments Certified Assessed Value $ 20,330 $ 21,290 $ 21,290 MILL LEVY General - - - Debt Service - - - Temporary Mill Levy Reduction (pursuant to C.R.S.39-5-121) - - - Refund and abatements - - - Total mill levy - - - PROPERTY TAXES General $ - $ - $ - Debt Service - - - Temporary Mill Levy Reduction - - - Refund and abatements - - - Levied property taxes - - - Adjustments to actuaVrounding - - - Budgeted property taxes $ - $ - $ - BUDGETED PROPERTY TAXES General $ - $ - $ - Debt Service - - - $ - $ - $ - This financial information should be read only in connection with the accompanying accountants report and summary of significant assumptions. RESOURCE COLORADO WATER AND SANITATION METRO DISTRICT GENERAL FUND FORECASTED 2009 BUDGET AS ADOPTED WITH 2007 ACTUAL AND 2008 ESTIMATED For the Years Ended and Ending December 31, 11/26/2008 Page 4 1 ACTUAL ESTIMATED ADOPTED 2007 2008 2009 BEGINNING FUND BALANCE $ (6,512) $ (7,980) 184 REVENUE Investment income 182 150 100 Developer advance 83,708 105,000 128,000 Total revenue 83,890 105,150 128,100 TRANSFERS IN Enterprise fund - - - Total transfers in - - - Total funds available 77,378 97,170 128,284 EXPENDITURES Accounting 16,926 20,000 23,000 Audit 3,680 - 4,000 Director fees - 3,500 3,500 District management 20,669 20,000 26,000 Election costs - 1,130 - Insurance 3,151 1,770 3,000 Legal 40,157 30,000 35,000 South Weld Advisory Board - 10,000 10,000 Miscellaneous 775 1,000 1,000 Payroll taxes - 268. 268 Contingency - 7,332 22,232 Total expenditures 85,358 95,000 128,000 TRANSFERS OUT Enterprise Fund - 1,986 - Total transfers out - 1,986 - Total expenditures and transfers out requiring appropriation 85,358 96,986 128,000 ENDING FUND BALANCE $ (7,980) $ 184 $ 284 EMERGENCY RESERVE $ 100 $ 100 $ 100 This financial information should be read only in connection with the accompanying accountants report and summary of significant assumptions. RESOURCE COLORADO WATER AND SANITATION METRO DISTRICT ENTERPRISE FUND FORECASTED 2009 BUDGET AS ADOPTED WITH 2007 ACTUAL AND 2008 ESTIMATED For the Years Ended and Ending December 31, 11/26/2008 Page 5 ACTUAL ESTIMATED ADOPTED 2007 2008 2009 • BEGINNING FUNDS AVAILABLE $ (75) $ (43,437) 5 - REVENUE Investment income - - - Water sales - - - Other income - 3,189 Sewer Revenue - - - Developer advance 160,292 123,262 85,000 Total revenue 160,292 126,451 85,000 TRANSFERS IN General Fund - 1,986 - Total transfers in - 1,986 - Total funds available 160,217 85,000 85,000 EXPENDITURES Accounting - 1,000 6,000 District management 448 2,000 2,000 Engineering and consulting 48,274 56,000 50,000 Insurance and bonds - - - Legal 70,511 20,000 25,000 Miscellaneous 17 2,000 1,000 Water purchases - - - Water system 22,111 2,800 - Raw water lines-Lost Creek - - - Non-tributory wells-Box Elder - - - Sewer line - - - Wastewater treatment plant 62,293 - - Contingency - 1,200 1,000 Total expenditures 203,654 85,000 85,000 TRANSFERS OUT General Fund - - - Total transfers out - - - Total expenditures and transfers out requiring appropriation 203,654 85,000 85,000 ENDING FUNDS AVAILABLE $ (43.437) $ - $ - This financial information should be read only in connection with the accompanying accountants report and summary of RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2009 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The District was organized to provide construction, installation, financing and operation of public improvements, including water and sanitary sewer. The District's service area is located entirely within Weld County, Colorado. The District was formed by Court Order on November 16, 2004, with its formation election held on November 2, 2004, The District prepares its budget on the modified accrual basis of accounting. Revenue Developer Advance The District is in the development stage. As such, the operating, administrative and capital expenditures for 2009 are to be funded by the Developer. Developer advances are recorded as revenue for budget purposes with an obligation for future repayment when the District is financially able to reimburse the Developer from bond proceeds and other available revenue. Investment Income Interest earned on the District's available funds has been estimated based on an average interest rate of approximately 2 %. Expenditures Administrative Expenditures Administrative and operating expenditures include the estimated services necessary to maintain the District's administrative viability such as legal, management, accounting, insurance, banking and meeting expense. Capital Outlay The District anticipates infrastructure improvements during 2009 as displayed on page 5. Debt and Leases The District has no outstanding debt or any operating or capital leases. Page 6 RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2009 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS (Continued) Reserve Emergency Reserve The District has provided for an emergency reserve fund equal to at least 3% of fiscal year spending for 2009, as defined under TABOR. This information is an integral part of the accompanying forecasted budget. Page 7 EXHIBIT B Application for Exemption from Audit for the year ended December 31, 2009 {00207115.DOC v:I ) APPLICATION FOR EXEMPTION FROM AUDIT-SHORT FORM FOR GOVERNMENTS WITH REVENUES AND EXPENDITURES OF$100,000 OR LESS Name of Government' Resource Colorado Water&Sanitation Metropolitan Distnct For the Fiscal Year Address. 8390 E Crescent Parkway ended December 31,2009 State 600 or fiscal year ended Greenwood Village,CO 80111 Contact Person: Jason Carroll Telephone: 303-779-5710 E-Mall f igpncpa Gorr 'Fax: Return to Office of the State Auditor Local Government Audit Division 225 E 16th Ave, Suite 555 Denver,CO 80203 FAX (303)8664062 Email OSA LGaistate co us Call(303)866-333B if you need help completing this form Section 29-1-604,C R S outlines the provisions for an exemption from audit Generally,any local govemment where neither revenues nor expenditures exceed$500,000 in any fiscal year qualify for an exemption If both revenues and expenditures are less than$100,000 Individually,you may use this form. Neither revenues or expenditures are$100,000,but not more than$500,000,you must use the long form application for exemption from audit. Instructions (See"Instructions'tab for additional information) 1 Prepare this form completely and accurately Please note that there are eleven parts to this form and all questions must be answered for the application to be considered complete 2 File this form with the Office of the State Auditor within 3 months after the end of the fiscal year For years ended December 31,the form must be received by the Office of the State Auditor by March 31 3 The form molt be completed by a person skilled in governmental accounting 4 The application must be approved by the governing body as evidenced by one of the following methods a Resolution of the governing board-application may be e-mailed,faxed,or mailed b Onginal signatures-application must be mailed E-mail or fax will NOT be accepted 5 The preoarer must skirt the application that is submitted in order for it to be accepted 6 Additional information may be attached to the exemption at the preparers discretion PART 1 -CERTIFICATION OF PREPARER 1.1 Name Jason Carrol 1.2 Title Accountant for the Distract 14 Firm(d applicable) Clifton Gunderson LIP 14 Address 8390 E Crescent Parkway,Suite 600,Greenwood Village,CO 80111 1-5 Telephone Number 303-779-5710 14 Date Prepared February 27,2010 1.7 Signature:SEE ACCOUNTANT'S COMPILATION REPORT The person that completes this form must be skilled in governmental accounting Check One (Skd/ed means possessing sufficient knowledge of governmental accounting to complete the exemption form) Yes No 148 Are you skilled in governmental accounting'?If no,this exemption will be rejected X Page 1 PART 2-REVENUE REVENUE All revenues for all funds must be ranted in this section including proceeds from the sale of the govemmenrs land. buddrq,and equipment and proceeds from debt or lease transactions Financial information will not include fund equity inn Llner4 Description (Omit cents) 2-1 Taxes Property S - 2-2 Specific Ownership $ - 2-3 Sales and Use $ - 2-4 Other(specify) $ - 2-5 Licenses and paints $ - 2-6 Intergovernmental Grants $ - 2-7 Conservation Trust Funds(Lottery) $ - 2-8 Highway Users Tax Funds(HUTF) $ - 2.9 Other(specify) $ - 2-10 Charges for services $ - 2.11 Fines and forfeits $ - 2.12 Special assessments $ - 2-13 investment income 1 2-14 Charges for utility aerates S - 2-15 Debt proceeds $ - 2.16 Lease proceeds $ - 2-17 Proceeds from sale of capital assets S - 2.18 Fee and poste pennon S - 2.19 Donations $ - 2-20 Other(specify) Developer advance $ 1,901 2-21 Transfer to other fund S 247 2-22 $ - 2-23 TOTAL REVENUE all sources $ 2.149 PART 3-EXPENDITURES EXPENDITURES All expenditures for all funds must be reflected in this Bonbon including the purchase of capital assets and pnncipai and interest payments on long-term debt Financial information will not include fund equity information Una# Description (Omit cents) 3-1 Administrative $ 10,923 3-2 Salanes $ - 33 Payroll taxes S 1 S4 3-4 Canted services S - 3-5 Employee benefits S - 3-6 Instance S 1,678 3-7 Accounting and Iasi fees $ 25,940 3-8 Repair and maintenance $ - 3-9 Supplies $ - 3-10 Utilities and telephone $ - 3-11 Fire/Police S - 3-12 Streets and highways $ - 3-13 Public health S - 3-14 Culture and recreation $ - 3-15 UNdvoperaboons $ - 3-16 Capital outlay $ - 3-17 Debt servxePaci d $ - 3-18 Debt service interest $ - 3.19 Contribuboon to peneicn plan $ - 3-20 Contribution to FPPA $ - 3-21 Other(spedfY) Miscellaneous $ 1.776 3-22 Interest expense on developer advance $ 30,768 3-23 Transfer horn other hand $ 247 3-24 $ - 3-25 TOTAL EXPENDITURES all categories $ 71,516 Page 2 • PART 4-DEBT OUTSTANDING,ISSUED AND RETIRED Please answer the following questions by marking the appropmte boxes Yes No 4-1 Dees the entity have outstanding debt? X If yes is the debt repayment schedule attached?If no,please explain The entity's debt X consists of developer advances which will be repayed when and if the entity is capable Please complete the following debt schedule,if Outstanding at Issued dunng Retired during Outstanding at applicable end of poor year fiscal year fiscal year fiscal year end General obligation bonds $ - S - $ - S - Revenue bonds S • S - S - $ - Noteslbans S - S - S - S - Leases S • $ - $ - $ Developer Advances $ 673,709 S 20,826 $ - S 694,335 Other(specify) Interest on dev Adv Enterpnse S 54,853 S 30,768 $ - $ 85,621 Please answer the following questions by marking the appropriate boxes ' Yes No 4-2 Does the entity have any authonzed,but unissued debt? X If yes How much? S 2,318,000,000 . . ... Date the debt was authorized 1112/2004 4-3 Does the entity intend to issue debt within the next calendar year(2010)? X If yes How much? I $ - .. .. .. .. .... Please answer the following questions by marking the appropriate boxes Yes No 44 Does the entity have debt that has been refinanced that it is still responsible for? X If yes _What is the amount outstanding? I S - - .. .. ... Please answer the following questions by marking the appropriate boxes Yes No ' 4-5 Does the entity have any lease agreements? X If yes What is being leased? What is the original date of the lease? Number of years of lease? ., Is the lease sub)ect to annual appropriation? What are the annual lease payments? $ PART 5-CASH AND INVESTMENTS Please provide the entity's cash deposit and Investment balances Amount Total 5.1 Checking Accounts $ 241 _•"' 5-2 Stange Accounts $ - ..,-.'' •. 5-3 Certificates d Deposit $ - • ••• Total cash Deposits $.: .241 Investments(if investment is a mutual fund,please list underlying investments) 54 lel . 55 56 5-7 Total Investments Total Cash and investments Please answer the following question by marking in the appropriate box Yes ' No 56 Are the entity's deposits in an eligible(PDPA)public depository(Sec 11-10 5-101 at X seq,C R S)? If no,please explain • Page 3 PART 6-CAPITAL ASSETS . Pins.answer the following questions by marking In the appropriate boxes Yes No 6-1 Does the entity have land,buildings,and/or equipment+ X If yes Has the entity preformed an annual inventory of propery and equipment(capital X assets)in accordance with Section 29.1.506 C R S 9 If no,please explain Complete the following table Balance- Beginning of the Balance-End Year Additions Deletions of the Year Land $ - $ - $ - $ - Buildings $ - $ - $ - $ - Machmery and equipment $ - $ - $ - $ - Fumiture and fixtures $ - $ - $ - $ - Infrastructure tZ 87,204 $ - $ - $ 87,204 Other(explain) $ - $ - $ - $ - PART 7-PENSION INFORMATION �Plesee answer tla f• -owls, •u •se • marking nthea• • •nits xas Yes No 7-1 .•.-the .", have en •.• hre'fkerrwn's •=nsl•n •an? X 74 a• : the haves tear lsernen's •:nsr. •lan7 _.... X If yes W . .„ .. .-. .gy ..., 9 Indicate the wnbtubons from Tax • • SO Sales etc $ State Con nbubon Amount $ - Other Gifts Donations etc $ . is the monthly benefit paid for 20 years of service per retiree $ - :. ... , ... as of Jan 1st7 PART 8-BUDGET INFORMATION Please answer the following questions by marking In the appropriate boxes Yes No 8-1 Did the entity file a 2009 budget with the Department of Local Affairs9 If no,please X explain If yes Please indicate the amount appropriated for each fund for 2009 Fund Name Budgeted 2009 Expenditures, _. General Fund $ 128,000 , Enterpnse Fund $ 85,000 $ ..._ - PART 9-TABOR Please answer the following question by marking in the appropriate box Yes No 9.1 Is the entity in compliance with RN the provisions of TABOR(Sate Constitution Article X X,Section 20(5)]7 If no,please explain NOW An election le exempt me government from the spending imitation.of TABOR do..not ar• xempt the government from the 3%omergeneyree.rrerpmrmnent Ml governments should Mamma of they meet this requirement of TABOR PART 10-GENERAL INFORMATION sawanswerthe n, •ash its • rise n mthea•• ••ras • xas IllInEEIM •O 10.1 ILL'.aft lr:L'J'af•.n• a•••;,.,n, , mtrin•,. X LE Data of formation 10-2 Is the eno a metro•• .i district? X 104 Please indicate what services you provide Construction,installation,financing and - operation of public improvements,including water,sanitary sewer,drainage facilities, - ancillary streets,and mosquito control 10-4 •es ' tie • havean . wmentwithan•. w••vemment • • •vi-esernras' X • If yes List the name of the other government entity and the services provided Page 4 PART 11 •GOVERNING BODY APPROVAL We,the undersigned,certify that this Application for Exemption from Audit has been Prepared consistent with Section 2&1.604,C R S,which states that an Application with revenues and expenditures of$100,000 or less must be prepared by a person skilled in governmental accounting, Completed to the best of our knowledge and is accurate and true, Reviewed end approved by a majority of the governing body Note:Please list all current members of the governing body. Original signatures must be provided for a majority of the governing body if the application is mailed,or a resolution may be provided in lieu of original signatures Name(print names of all current members of Date Term Original Sign ( I utlon Is the governing body) Expires _ a 1 Chnstopher R Paulson May 2012 �i 2 Joel H Farkas May 2010 3 William V Hibberi May 2010 /, 4 Jack E Reutzel May 2012 5 Toni L Serra May 2010 CrcniL)LLAI\Ct-} 6 7 Page 5 aaftal:- TSOI1 LLP Certified Public Accountants&Consultants ACCOUNTANT'S COMPILATION REPORT Board of Directors Resource Colorado Water and Sanitation Metropolitan District Weld County, Colorado We have compiled the Application for Exemption from Audit of Resource Colorado Water and Sanitation Metropolitan District as of and for the year ended December 31, 2009, included in the accompanying prescribed form in accordance with Statements on Standards for Accounting and Review Services issued by the Amencan Institute of Certified Public Accountants. Our compilation was limited to presenting in the form prescnbed by the Colorado State Auditor's office information that is the representation of management. We have not audited or reviewed the accompanying Application for Exemption from Audit and, accordingly, do not express an opinion or any other form of assurance on it The Application for Exemption from Audit is presented in accordance with the requirements of the State Auditor's office, which may differ from generally accepted accounting principles Accordingly, the Application for Exemption from Audit is not designed for those who are not informed about such differences We are not independent with respect to Resource Colorado Water and Sanitation Metropolitan District. l2)Mps.- 40,6raoat... ICJ Greenwood Village,Colorado February 27,2010 Offices in 16 states and Washington,DC H LB Inumauona EXHIBIT C Summary of Debt and Debt Authorization To: Weld County, CO From: McGeady Sisneros, PC Date: July, 2011 Re: Resource Colorado Water and Sanitation Metropolitan District Election Authorization as of 12/31/10 Principal Principal Principal Amount of Amountof Amount of . Authorization Authorization Authorized Debt Used Remaining Purpose-Improvements 5A Streets $324,000,000.00 $0.00 $324,000,000.00 5B Water Supply System $324,000,000.00 $0.00 $324,000,000.00 5C Sanitary Sewer System $324,000,000.00 $0.00 $324,000,000.00 5D Mosquito Control $324,000,000.00 $0.00 $324,000,000.00 Improvements Total $1,296,000,000.00 $0.00 $1,296,000,000.00 Purpose -Other Authorizations Refunding of District debt or 5E other obligations $324,000,000.00 $0.00 $324,000,000.00 IGAs that are MFY obligations; payable from unlimited ad valorem 5F property tax levy $324,000,000.00 $0.00 $324,000,000.00 Operating Expenses and Reimbursement of Operating 5G Advances to the District $50,000,000.00 $0.00 $50,000,000.00 IGAs that are MFY obligations; payable from unlimited ad valorem 5H property tax levy $324,000,000.00 $0.00 $324,000,000.00 IGAs for Regional Improvements that are MFY 51 obligations Allowed Authority to Collect/Spend Facilities Fees, charges, tap 5J fees Allowed Note: IGA=Intergovernmental Agreement; MFY=Multiple Fiscal Year Debt: All authorized debt is in the form of revenue bonds or other obligations of the District including but not limited to contracts, leases and other agreements,except as otherwise noted. Date of Last Election: May 2,2010 (00207115.DOCv:I } EXHIBIT D RESOLUTION NO. 2009-12-01 REGARDING THE AMENDMENT OF THE DISTRICTS' RULES AND REGULATIONS (002071 15.DOC v:I RESOLUTION NO.2009-12-D • RIVERDALE PEAKS II METROPOLITAN DISTRICT RESOLUTION REGARDING THE AMENDMENT OF TILE DISTRICT'S RULES AND REGULATIONS WHEREAS, Riverdale Peaks II Metropolitan District, Adams County, Colorado (the "District"), is a quasi-municipal corporation and political subdivision of the State of Colorado; and WHEREAS,pursuant to Section 32-1-1001(1)(m), C.R.S.,the District has adopted rules and regulations(the"Rules and Regulations"); and WHEREAS,the District expressly reserved the right to make any lawful addition and/or revisions in the Rules and Regulations; and WHEREAS,the District has determined that it is necessary to amend the Rules and Regulations to adjust the District's Schedule of Fees, Rates and Charges set forth in Exhibit A to the Rules and Resolutions. WHEREAS,the District mailed notice of the proposed amendment to the Rules and Regulations to the District's residents in order to give the District's service users an opportunity to comment on the proposed amendment to the Rules and Regulations. NOW,THEREFORE', BE IT RESOLVED by the Board of Directors of Riverdale Peaks II Metropolitan District as follows: 1. Capitalized terms not otherwise defined herein have the meanings ascribed to them in the Rules and Regulations. 2. Effective January 1, 2010, the Schedule of Fees,Rates and Charges set forth in Exhibit Ato the Rules and Regulations shall be amended as set forth on Exhibit A attached hereto and incorporated herein by this reference APPROVED AND ADOPTED this 9th day of December, 2009 RIVERDALE PEAKS II METROPOLITAN DISTRICT ,� By: Aim eL �e �w Its: Attest: By: Its: Spero kA 1s,1 {00159341.DOC v:1) Exhibit A Schedule of Fees,Rates and Charges Water Resource Fees(Section 2.1.8(1)): Reserved Water Service Deposit(Section 2.1.10(d)): Reserved Inclusion Fee(Section 2.1.11): $1,500.00 initial deposit. Actual costs of all costs of publication, engineering,title review,attorneys fees and related costs of the District in processing the inclusion to be paid by the Petitioner. Fees,Rates and Service Charees(Section 2.2.3): Potable/Indoor Water Rates: Tier Price Usage(Gallons), Base $70.00 0—8,000 , 1 $4.00/1,000 gallons 8,001 - 12,000 2 $5.00/1,000 gallons 12,001 - 18,000 3 $6.00/1,000 gallons 18,001 —24,000 4 $10.00/1,000 gallons over 24,000 Connection/Inspection Fee: $300.00 Connection/Re-Inspection Fee: $150.00 Meter Installation Inspection Fee: $200.00 plus cost of meter* Meter Installation Re-Inspection Fee: $200.00 Non-Potable/Irrigation Water Rates: Tier Price Usage(Gallons) Base $70.00 0—81,457 Penalty Charge for use in excess of Irrigation Budget(any use in excess of 81,457 gallons annually): $30.00/1,000 gallons Connection/Inspection Fee: $300.00 Connection/Re-Inspection Fee: $150.00 Meter Installation Inspection Fee: $200.00 plus cost of meter* Meter Installation Re-Inspection Fee: $200.00 Construction Water Fee: $300.00 *Meter cost will be at then-current market rate. Water Facilities Fees (Section 2.2.3(b)): $19,750 per Residential Equivalent Unit Connection Fees (Section 2.2.3(c)): Unauthorized Connection Fee: Twice the then-current Water Facilities Fee(s) (00159352.DOC v:1} Fees for Collection of Delinquent Amounts: Turn On/Tum Off Fee: $100.00 Foreclosure Fee: In accordance with Section 2.2.4(d). OWS Fees(Article 101: Annual Administrative Fee: $100.00 Enforcement Fee: $200.00 plus actual costs associated with maintenance/repairs Landscape Review Fees(Article 121: Review Fee: $170.00 Re-Review Fee: $85.00 Other Fees and Charges: Late Payment Fee: $5.00 per month Returned Check Fee: $25.00 Violation of Rules&Regulations and/or Tampering with District Facilities: $1,500 to $2,000 fine,plus actual cost of damage,expense and loss Hearing Fee: $250.00 • {0015s352.DOC v: } 2 EXHIBIT E Intergovernmental Agreements Lost Creek Ground Water Management District Intergovernmental Agreement (07/10/05); describes the agreement for funding a USGS study and the sharing of the information derived from the study. A copy of this agreement previously provided with the 2006 Annual Report. Town of Keenesburg Agreement (4/25/06); sets forth the terms and conditions of the purchase of the water right associated with Well Permit No. 31652-FP by the Town from the District. A copy of this agreement previously provided with the 2006 Annual Report. Assignment (7/26/06); assigns all right, title and interest to the water right associated with Well Permit No. 31652-FP to the Town by the District. A copy of this agreement previously provided with the 2006 Annual Report. Easement Deed (7/26/06); grants an easement to the Town for access to the Tank Site. A copy of this agreement previously provided with the 2006 Annual Report. Agreement (7/26/06); sets forth the terms and conditions regarding certain specified obligations regarding the decrees and stipulations related to the water right associated with Well Permit No. 31652-FP. A copy of this agreement previously provided with the 2006 Annual Report. Agreement (7/26/06); defines the terms and conditions for the District to use and reuse the water right associated with Well Permit No. 31652-FP, subject to a certain reservation. A copy of this agreement previously provided with the 2006 Annual Report. Letter of Agreement (12/7/06); sets forth the understanding of the Town and the District with regard to the well water transmission line being installed by the Town from Well No. 31652-FP to the Town's water system and a proposed water storage tank site. (All rights associated with paragraph 4 of the agreement assigned to Pioneer Regional Water Activity Enterprise.) Copy previously provided with the 2008 Annual Report. Intergovernmental Agreement (dated 6/22/07, effective 7/11/07); sets forth the obligations of the Town and the District with regard to the funding of a feasibility study regarding the joint use of the Keenesburg facility to provide service to Pioneer Regional Metropolitan District and Pioneer Metropolitan District Nos. 1-6 to serve Pioneer Communities Phase I. Copy previously provided with the 2008 Annual Report. [00207115.DOC v:l } A RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2010 ANNUAL REPORT TO SOUTHERN WELD ADVISORY BOARD Pursuant to Section II.C of the Service Plan as approved by the Board of County Commissioners of Weld County, Colorado on August 25, 2004,the Resource Colorado Water and Sanitation Metropolitan District("District") is required to provide, on an annual basis,the following report to the Southern Weld Advisory Board. Additional questions regarding the information set forth in this report may be directed to the office of the District Manager, Resource Colorado Water and Sanitation Metropolitan District, 141 Union Blvd., Lakewood, CO 80228, (303) 987-0835, during regular business hours and pursuant to the Rules and Regulations adopted by the District. All information provided in this summary is through December 31, 2010. 1. Capital Improvement Progress Report. (a) Summary of Description and Mapping of Completed Improvements from Date of Organization through December 31 of the Year Prior to the Year of the Report. No improvements were completed as of December 31,2010. Please see response in 1(b) below. (b) Summary of Description and Drawing of Improvements Proposed to be Constructed within 36 Months of January 1 of the Year of the Report ("Three Year CIP Plan"). A Three Year CIP Plan was not prepared by the District as of December 31, 2010, as preliminary planning and engineering was not completed as of year-end. Since its organization in 2004 through December 31, 2010,the District has been focusing on planning, engineering, administrative and legal matters related to the provision of water and wastewater improvements and services to service providers in Weld County. Among the proposed service providers that the District is expected to service are the Pioneer Regional Metropolitan District and Pioneer Metropolitan Districts Nos.1 —6 (collectively, the "Pioneer Districts"). The Service Plans for the Pioneer Districts were approved by Weld County on February 6,2006. During 2010, the District continued with the engineering and planning aspects of wastewater service for the Pioneer Districts, including exploring the feasibility of providing coordinated wastewater services with other service providers. The utility plan and application for site location for the wastewater treatment facility that was submitted to the North Front Range Water Quality Planning Association (the "Association")on November 16, 2006, received conditional approval of the Association on April 26, 2007. No further activities regarding the wastewater treatment facilities were undertaken by the District as of December 31, 2010. With respect to water service, in February of 2006,the District filed in Water Division No. 1, an application for determination of rights to ground water in the not nontributary Arapahoe Aquifer underlying approximately 650 acres and in the nontributary Larmie-Fox Hills Aquifer underlying approximately 5,668 acres, which acreages overlap. A decree granting the (002071 I6.DOC v:I )W:\CLIENTS\667\ServiceP\00207116.DOC application was entered on December 29, 2006 entitling the District to withdraw 5.7 acre feet per year from the not nontributary Arapahoe Aquifer and 1,281.9 acre feet per year from the nontributary Laramie-Fox Hills Aquifer subject to the terms of the decree. With respect to providing service to other service providers,the District completed the sale of Well 31652FP and associated water rights to the Town of Keenesburg ("Town") on July 26, 2006. The District entered into an intergovernmental agreement with the Town on December 7, 2006 regarding joint use and cost sharing for the pipeline and related facilities servicing said well. See Exhibit D herein for a complete listing of the agreements associated with this transaction. The District anticipates preparing the Three Year CIP Plan in conjunction with an overall feasibility study and comprehensive plan for water and wastewater services. The District anticipates that the Three Year CIP Plan may be available in 2012. (c) Summary of Infrastructure Phasing and Schedules of Improvements Described in Three Year CIP Plan. Please see response in 1(b) above. 2. District Financial Reporting. (a) Annual Budget for Year of Report. See Exhibit A attached hereto. (b) Annual Audit of Financial Statements for the Fiscal Year Ending December 31 of the Year Prior to the Year of the Report. The District filed an application for exemption from audit for the year ended December 31, 2010, a copy of which is attached hereto as Exhibit B. (c) Summary of Total Debt Outstanding and Remaining Amounts of Authorized but Unissued Debt Authorization. See Exhibit C attached hereto. 3. Operations Reporting. (a) Current Rules and Regulations. The District's current Rules and Regulations were submitted with the 2007 Annual Report and an Amendment submitted with the 2009 Annual Report. (b) Changes to District's Taxing Boundary or Service Area Boundary, as such Terms are Defined in District's Service Plan. There have been no changes to the District's taxing boundary or Service Area boundary, as such terms are defined in District's Service Plan from the date of organization through December 31, 2010. (c) Copies of Executed Intergovernmental Agreements. See Exhibit D attached hereto. {002071 16.DOCv1 ) (d) Names and Terms of Board Members and Contact Information. Vacant Term expires: 2012 Vacant Term expires: 2012 John "Mick" Todd 2313 17th St. Greeley, CO 80634 Telephone: (970) 352-4980 Term expires: 2012 Toni L. Serra Gateway American Resources 9033 E. Easter Ave., Suite 112 Centennial, CO 80112 Telephone: (720) 362-5995 Fax: (720) 362-7116 Term expires: 2014 Joel H. Farkas Gateway American Resources 9033 E. Easter Ave., Suite 112 Centennial, CO 80112 Telephone: (720) 362-5995 Fax: (720) 362-7116 Term expires: 2014 (e) Schedule and Locations of Regular Board Meeting . Meeting were scheduled as needed. (f) Summary of any Outstanding Litigation. The District has filed an Application for approval of a plan for augmentation in Case No. 06CW256, Water Division No. 1 as described in Section 1(b) herein, which case was dismissed as of September 20, 2010. (00207116.DOC v-1 } Respectfully submitted this r1 day of&p itmiatt ,2011. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT By: / l Tod Serra, President/ Attest: By: Name: _ oe Far a • Title: Pt 5cs-l.. Sec ce-tr&r (00207116.DOC v:I I EXHIBIT A 2010 Budget {00207116.OOC v:1 1 A-1 RESOLUTION TO AMEND 2010 BUDGET RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT WHEREAS, the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District adopted a budget and appropriated funds for the fiscal year 2010 as follows: General Fund $ 59, 000 Enterprise Fund $ 90, 000 WHEREAS, the necessity has arisen for the creation of an additional fund requiring the unanticipated expenditure of funds in excess of those appropriated for the fiscal year 2010; and WHEREAS, the expenditure of such funds is a contingency which could not have been reasonably foreseen at the time of adoption of the budget; and WHEREAS, funds are available for such expenditures in the Enterprise Fund-Front Range from developer advances . NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District shall and hereby does amend the adopted Budget for the fiscal year 2010 and adopts a supplemental budget and appropriation for the creation of an Enterprise Fund-Front Range for the fiscal year 2010, as follows : Enterprise Fund-Front Range $ 26, 400 BE IT FURTHER RESOLVED, that such sums are hereby appropriated from the revenues of the District to the proper funds for the purposes stated. DATED this 16th day of November, 2010 . RESOURCE COLORADO WATER AND SANITATION MET OP - TAN DISTRICT By: ecretary 2010 BUDGET AMENDMENT RESOLUTION l�L1, oDdS" ,n • RESOURCI. OLORADO WATER AND SA. TATION METROPOLITAN DISTRICT 141 Union Boulevard, Suite 150 Lakewood,Colorado 80228-1898 Tel: 303-987-0835 . 800-741-3254 Fax: 303-987-2032 January 29, 2010 Division of Local Government 1313 Sherman Street, Room 520 Denver, Colorado 80203 Re: Resource Colorado Water and Sanitation Metropolitan District Ladies and Gentlemen: Enclosed is the 2010 Budget as certified by the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District of Weld County, Colorado, submitted pursuant to Section 29-1-113, C.R. S . If there are any questions on the Budget, please contact Lisa A. Johnson, District Manager, at (303) 987-0835 . Si erely; Karen Steggs Assistant to Lisa A. Johnson District Manager Enclosure cc : McGeady Sisneros, P. C. - Jennifer Henry Clifton Gunderson LLP CERTIFICATION OF BUDGET TO: THE DIVISION OF LOCAL GOVERNMENT This is to certify that the budget, attached hereto, is a true and accurate copy of the budget for Resource Colorado Water and Sanitation Metropolitan District, for the budget year ending December 31, 2010 as adopted on November 11, 2009 . IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of Resource Colorado Water and Sanitation Metropolitan District in Weld County, Colorado, this 11th day of November, 2009 . R490(4)F By: S re tary n o (B l)O0 0 a ,tjii S5di3M o 4"0/ it/ANS ere' Accountant's Report Board of Directors Resource Colorado Water and Sanitation Metropolitan District Weld County, Colorado We have compiled the accompanying forecasted budget of revenue, expenditures, and fund balance/funds available of the Resource Colorado Water and Sanitation Metropolitan District for the General and Enterprise Funds for the year ending December 31, 2010, including the forecasted estimate of comparative information for the year ending December 31, 2009, in accordance with attestation standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of forecast information that is the representation of management and does not include evaluation of the support for the assumptions underlying the forecast. We have not examined the forecast and, accordingly, do not express an opinion or any other form of assurance on the accompanying budget of revenue, expenditures, and fund balance/funds available or assumptions. Furthermore, there will usually be differences between the forecasted and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events or circumstances occurring after the date of this report. The actual historical information for the year 2008 is presented for comparative purposes only. Such information is taken from the Application for Exemption from Audit of the District for the year ended December 31, 2008. Management has elected to omit the summary of significant accounting policies required by the guidelines for presentation of a forecast established by the American Institute of Certified Public Accountants. If the omitted disclosures were included in the forecast, they might influence the user's conclusions about the District's results of operations for the forecasted periods. Accordingly, this forecast is not designed for those who are not informed about such matters. We are not independent with respect to the Resource Colorado Water and Sanitation Metropolitan District. firx- /LP Greenwood Village, Colorado November 30, 2009 RESOURCE COLORADO WATER AND SANITATION DISTRICT SUMMARY FORECASTED 2070 BUDGET AS ADOPTED WITH 2008 ACTUAL AND 2009 ESTIMATED For the Years Ended and Ending December 31, 11/30/2009 ACTUAL ESTIMATED ADOPTED 2008 2009 2010 BEGINNING FUND VALANCES $ (51,417) $ (77,184) $ (122,309) REVENUES 1 Developer advance 114,225 20,626 271,309 2 Interest income 136 2 - 3 Other income 3,489 - - Total revenues 117,850 20,628 271,309 TRANSFERS IN - 247 Total transfers in - 247 - Total funds available 66,433 (56,309) 149,000 EXPENDITURES General and administration 4 Accounting 19,787 15,500 22,000 5 Audit - 6 Contingency - 500 5,732 7 Director fees 2,400 2,400 3,500 8 District management 16,874 13,500 18,000 9 Election 1,112 - 2,000 56,144 - 50,000 10 Engineering 1,770 1,678 3,000 11 Insurance 12 Legal 40,707 29,000 41,000 13 Miscellaneous 1,839 2,991 3,500 14 Payroll taxes 184 184 268 15 South Weld Advisory Board - - 16 Water system 2,800 - - Total expenditures 143,617 65,753 149,000 TRANSFERS OUT - 247 Total transfers out - 247 Total expend i lures and transfers out requiring appropriation 143,617 66,000 149,000 ENDING FUND BALANCES $ (77,184) $ (122,309) $ - EMERGENCY RESERVE $ - S - $ TOTAL RESERVE $ - $ - $ This financial information should be read only in connection with the accompanying accountants report and summary of significant assumptions. 2 • RESOURCE,COLORADO WATER AND SANITATION DISTRICT PROl'ERTY'I'AX SUMMARY INFORMATION For the Years Ended and Ending December 31, 11/30/2009 ACTUAL ESTIMATED ADOPTED 2008 2009 2010 ASSESSED VALUATION - Agricultural $ 21,290 $ 21,290 $ 15,800 21,290 21,290 15,800 Certified Assessed Value $ 21,290 $ 21,290 $ 15,800 MILL LEVY GENERAL FUND - - Total Mill Levy - PROPERTY TAXIES GENERAL FUND $ - $ - $ Levied property taxes - - 'Budgeted Property Taxes $ - $ - $ - BUDGETED PROPERTY TAXES $ • $ - $ • This financial information should be cad only in connection with the accompanying accountant's repots and summary of significant assumptions. 3 • RESOURCE COLORADO WATER AND SANITATION DISTRICT GENERAL FUND FORECASTED 2010 BUDGET AS ADOPTED WITH 2008 ACTUAL AND 2009 ESTIMATED For the Years Ended and Ending December 31, 11/30/2009 ACTUAL ESTIMATED ADOPTED 2008 2009 2010 BEGINNING FUND BALANCES $ (7,980) $ (42,571) $ (82,668) REVENUES 1 Developer advance 33,753 1,901 141,668 2 Interest income 136 2 - 3 Other income 300 - Total revenues 34,189 1,903 141,668 Total funds available 26,209 (40,668) 59,000 EXPENDITURES General and administration 19,671 15,000 16,000 4 Accounting 5 Audit - - - - 1,2326 'Contingency 7 Director fees 2,400 2,400 3,500 8 District management ]6,520 13,000 16,000 9 Election 1,112 - 2,000 10 Insurance 1,770 1,678 3,000 11 Legal 26,509 9,000 16,000 12 Miscellaneous 614 491 1,000 13 Payroll taxes 184 184 268 - 14 South Weld Advisory Board Total expenditures 68,780 41,753 59,000 TRANSFERS OUT 15 ENTERPRISE FUND - 247 _ Total transfers out - 247 Total expenditures and transfers out requiring appropriation 68,780 42,000 59,000 ENDING FUND BALANCES $ (42,571) $ (82,668) $ - EMERGENCY RESERVE $ - $ - $ TOTAL RESERVE $ - $ - $ This financial information should be read only in connection with the accompanying accountants report and summary of significant assumptions. 4 RESOURCE COLORADO WATER AND SANITATION DISTRICT ENTERPRISE FUND FORECASTED 2010 BUDGET AS ADOPTED WITH 2008 ACTUAL AND 2009 ESTIMATED Fur the Years Ended and Ending December 31, 11/30/2009 ACTUAL ESTIMATED ADOPTED 2008 2009 2010 BEGINNING FUND BALANCES $ (43,437) $ (34,613) $ (39,641) REVENUES 1 Developer advance 80,472 18,725 129,641 2 Other income 3,189 Total revenues 83,661 18,725 129,641 TRANSFERS IN 3 GENERAL FUND - 247 Total transfers in - 247 Total funds available 40,224 (15,641) 90,000 EXPENDITURES General and administration 4 Accounting 116 500 6,000 5 Contingency - 500 4,500 6 District management 354 500 2,000 7 Engineering 56,144 - 50,000 8 Legal 14,198 20,000 25,000 9 Miscellaneous 1,225 2,500 2,500 10 Water system 2,800 - Total expenditures 74,837 24,000 90,000 Total expenditures and transfers out requiring appropriation 74,837 24,000 90,000 ENDING FUND BALANCES $ (34,613) $ (39,641) $ - TOTAL RESERVE $ - $ $ This financial information should be read only in connection with the accompanying accountant's repnn and summary of significant assumptions. 5 RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2010 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The District was organized to provide construction, installation, financing and operation of public improvements, including water and sanitary sewer. The District's service area is located entirely within Weld County, Colorado. The District was formed by Court Order on November 16, 2004, with its formation election held on November 2, 2004. The District prepares its budget on the modified accrual basis of accounting. Revenue Developer Advance • The District is in the development stage. As such, the operating, administrative and capital expenditures for 2010 are to he funded by the Developer. Developer advances are recorded as revenue for budget purposes with an obligation for future repayment when the District is financially able to reimburse the Developer from bond proceeds and other available revenue. Additionally, developer advances are required to eliminate previous fund balance deficits. Investment Income Interest earned on the District's available funds has been estimated based on an average interest rate of approximately 0.5 % Expenditures Administrative Expenditures Administrative and operating expenditures include the estimated services necessary to maintain the District's administrative viability such as legal, management, accounting, insurance, banking and meeting expense. Capital Outlay The District anticipates infrastructure improvements during 2010 as displayed on page 5. Debt and Leases The District has no outstanding debt or any operating or capital leases. Page 6 RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2010 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Reserve Emergency Reserve The District has provided for an emergency reserve fund equal to at least 3% of fiscal year spending for 2010, as defined under TABOR. The emergency reserve amount is zero due to the fact that none of the District's revenue sources are subject to the requirements of TABOR. This information is an integral part of the accompanying forecasted budget. Page 7 EXHIBIT B Application for Exemption from Audit for the year ended December 31, 2010 (00207116.DOC v1 ) B-1 APPLICATION FOR EXEMPTION FROM AUDIT-SHORT FORM FOR GOVERNMENTS WITH REVENUES AND EXPENDITURES OF $100,000 OR LESS Name of Government: Resource Colorado Water&Sanitation Metro District For the Fiscal Year Address: 8390 E,Crescent Parkway ended December 31,2010 Suite 600 or fiscal year ended Greenwood Village,CO 80111 Contact Person: Jason Carron Telephone: 303.779-5710 • E-Mail: jason.carroll@clitloncpa.com Fax: 720-482-6668 • Return to: Office of the State Auditor • Local Government Audit Division 225 E 16th Ave., Suite 555 Denver.CO 80203 FAX:(303)888-4062 Email: OSA LG@state,co us Call(303)866-3338 if you need help completing this form Section 29-1-604,CRS.outlines the provisions for an exemption from audit. Generally,any local government where neither revenues nor expenditures exceed$500.000 in any fiscal year may qualify for an exemption If both revenues end expenditures are less than$100,000 individually,you may use this form. If either revenues or expenditures are$100,000,but not more than$500,000,you must use the long form application for exemption from audit. Please review ALL instructions prior to the completion of this form. Instructions:(See Instructions"tab for additional informaliont 1 Piepare this form completely and accurately Please note Mat there tie eleven pads lo this form and all questions must be answered for the application to be considered complete. 2 File this form with the Office of the State Auditor within 3 months after the end of the fiscal year For years ended December 31 the form must be received by the Office of the State Auditor by March 31 3 The form must be completed by a person skilled in governmental accounting - 4. The application must be personally reviewed and approved by a majority of the governing body as evidenced by one of the following methods • a.Resolution of the governing board-application may be e-mailed faxed,or mailed b.Original signatures-application must be mailed E-mail or fax will NOT be accepted. 5 The preparer must sign the application that is submitted in order for it to be accepted. 6 Additional information may be attached to the exemption at the emperor's discretion PART 1 -CERTIFICATION OF PREPARER 1-1 Name.Jason Carroll 1.2 Title:Accountant for the District 1-3 Firm fit applicable): Clifton Gunderson LLP 1-4 Address:8390 E Crescent Pkwy.,Suite 600,Greenwood Village,CO 80111 1.5 Telephone Number: 303-779-5710 1-6 Date Prepared: 3/2/2011 -. 1.7 Preparer Signature (Required): See Accountant's Compilation Report The person that completes this form must be skilled in governmental accounting Check One (Skilled means possessing sufficient knowledge of governmental accounting to complete the exemption form) Yes No 1-8 Are you skilled in governmental accounting' If no,this exemption will be rejected. X Page 1 PART 2 -REVENUE 'REVENUE. All revenues lot all funds must be reflected in this seelion including proceeds I¢In me sale of the governments land. building,and equipment and proceeds from debt or lease transactions. Financial information will not include fund equity information Line,/ Description (Omit cents) 2-1 Taxes: Property - 2-2 Specific Ownership • 2-3 Sales and Use • 2-4 Other(specify). _ • 2-5 Licenses and permits 2-5 Intergovernmental Grants - 2-7 Conservation Trust Funds(Lottery) 2-6 __ Highway Users Tax Funds(HUTF) - --Ti— Other(specify) 2-10 Charges for services ___- 2-11 Fines and forfeds 2-12 Special assessments 2-13 Investment income • 2-14 Charges for utility services - 2-15 Debl proceeds - 2.16 Lease proceeds — - 2-17 Proceeds from sale of capital assets 2-18 Fire and police pension • 2-19 Donations - 2-20 Other(specify): - 2.21 Developer advance 65,242 2-22 2-23 TOTAL REVENUE all sources 65,242 PART 3 -EXPENDITURES EXPENDITURES. All expenditures for all funds must be reflected in Ibis section Including the purchase of capital assets ane principal and interest payments on long-term debt. Financial inlormalion will not include fund equity info'malion ; Linea Description (Omit cents) 3-1 Administrative S 13,087 3-2 Salaries S - 3-3 Payroll taxes S - 3-4 Contract services S - 3-5 Employee benefits $ - 3-5 Insurance $ 1.575 3-7 Accounting and leual lees $ : 64,860 3 8 Repair and maintenance $ - 3.9 Supplies $ - 3-10 Utilities and telephone $ - 3-11 Fire/Police $ - 3.12 Streets and highways $ - 3.13, Public health $ - 3-14 Culture and recreation S 3-15 Uliley operations $ l 3-16 Capital outlay $ 3-17 Debt service principal $ • 1 3-18 Debt service interest S ..___----- 3-19 Contribution to pension plan $ 3-20 Contribution to FPPA $ 3-21 Other(specify). $ - 3-22 $ - 3-23 $ • _ 3.24 $ - 3-25 TOTAL EXPENDITURES alt categories $ 79,542 Note: If Total Revenue(Line 2.23) or Total Expenditures(Line 3-25) are greater than $100,000- STOP, you may not use this form. Please use the "Application for Exemption from Audit-Long Form". Page 2 PART 4-DEBT OUTSTANDING, ISSUED AND RETIRED —1Please answer the following questions by marking the appropriate boxes Yes No ~ 4-1 Does the entity have outstanding debt? X It yes. Is the debt repayment schedule attached?If no,please explain The District's debt X obligations are only payable as funds are available Please complete the following dobt schedule,ii Outstanding al Issued during Retired during Ou;sland:rg al applicable: end of prior vear fiscal year fiscal yeai fiscal year end General obligation bonds $ - 5 - $ - $ Revenue bonds $ - $ - S - $ - Notesrloans $ $ - 5 - $ - Leases TS-- $ - 5 - 5 Developer Advances 3 694335 $ 85,242 5 - $ 779.577 Other Accrued interest on Developer Adv(EF) 3 85,621 $ 33.689 $ • $ 119.310 Please answer the following questions by marking the appropriate boxes Yes No 4.2 Does the entity have any authorized,but unissued debt? X !I yes How much? $ 2.318.000.000 ,; ire, r/I Dale the debt was authorized: 11/2/20041 d( 4-3 Does the entity intend to issue debt within the nexl calendar vear(70111? ‘pfrX If yes How much? 15 - F Please answer the following questions by marking the appropriate boxes Yes No 4'4 Does the entity have debt that has been refinanced that it is still responsible for, _ X If yes: What is the amount outstanding? I S I. iM, i.4 Please answer the following questions by marking the appropriate boxes Yes I No 4-5 Does the entity have any lease agreements? X it yes What is being leased? (( '.7 [ zt% 'A WUM►V.�Mi-Jwf MYI What is the original date of the lease? S-" w a,., Cf!Wo. Number of years of lease? r:', �"-t 14*r' ,r _ Is the lease subject to annual appropriation? .... ff What are the annual lease payments? 5 r';`,"- "`�":-.71;c PART5 -CASH AND INVESTMENTS f Please provide the entity's cash deposit and Investment balances Amount ! Total 6-1 Checking Accounts S 176 ;_:arct'ap.--, 6.2 Savings Accounts 5 - iirefiri 63 Certificates of Deposit $ � Total Cash Deposits '-r''s' - $ 175 TKs Investments(if investment is a mutual fund.please list underlying investments): - ,i, s 6-5 5 ,' 66 5 Total Investments -' t5_ • Total Cash and Investments �' 'J$ 176 Please answer the following question by marking in the appropriate box Yes No _5-6 IAre the entity's deposits in an eligible(POPA)public depository(Sec 11-10.5-101 ei X seq,C R S 1� If no,please explain': Page 3 PART 6-CAPITAL ASSETS Please answer the following questions by marking In the appropriate boxes Yes No 6.1 Does the entity have land,buildings,and/or equipment? X If yes Has the entity performed an annual inventory of property and equipment(capital X assets)in accordance with Section 29-1-506 C R S,7 II no,please explain: Complete the following table Balance- Beginning of the Balance S End Year Additions Deletions t of the Year Land S - $ - $ - $Buildings $ - $ $ - S Machinery and equipment S - $ • $ - $ Furniture and fixtures $ - $ - $ - $ Infrastructure S 67,204 3 $ - $ 87.204 Other(explain). S - S -PART 7 -PENSION INFORMATION _ I (ease answer the( II win• •uesli•ns marking in the a••r•• Yes No 7-1 D• t It amtTOrltbhuIIitau.manw•19r411•ll4 . X 7.2 a•es the entil have av•lun ee hr- 'l• -X If yes: Who administers the .lan7 Tax: f Presort ,SO Sales,etc - $ - S What is the monthly benefit paid for 20 years of service per retiree $ as of Jan 1st? PART 8 • BUDGET INFORMATION• Kase answer the TriirOwmg questions by marking in the appropriate boxes Yes No 8.1 Did the entity filo a 2010 budget with the Department of Local Affairs? If no,please X explain' If yes Please indicate the amount appropriated for each fund for 201O Fund Name Budgeted 2010 Expenditures General Fund $ 59,000 Enterprise Fund $ 90.000 $ PART 9 -TABOR Please answer the following question by marking In the appropriate box Yes i No 9-1 is the entity in compliance with all the provisions of TABOR(Slate Constitution Article X X,Section 20(5)1? II no,please explain. Note: An election to exempt the government from the spending limitations of TABOR does not Y y at( ... - e•empt the government from the 3/ emergency reserve requirement. All governments should V }r. y '} ., M ?;4D .' determine 11 they meet ihiq requirement pt TAUOR. '(�'i -:T„•'i ka 1 4J�'+�~tl -'I Page 4 L _ _ PART 10 -GENERAL INFORMATION -Please answer the f•II win• •uestl•ns • mark n• 0the a••r rlate ••xes Yes NO 10.1 Is the enht a newt formed•overnmental entity? I x BEM 4LILE _ a 1 Date of formation: 10.2 Is the entit a melt.•.titan district? _ X _' 10 3 Services provided Construction, installation,financing.and operation of public [1.17(,:511:5. t h improvements,including water sanitary sewer,drainage facilities,ancillary streets i and mosquito control 10-4 Does the enttt have an a•reeement with another•overnment 10•rovtde services? - ' X If yes List the name of the other governemnt entity and services provided i 10.5 Has the district filed a Tide 32,Article 1 Special District Notice of Inactive Status Yes ( No-NIA during the year? (Applicable to Title 32 Special Districts only,pursuant to Section 32-_ X 1-103(9.3);32-1-104(3),C.R.S.) If yes. Date Filed I<-f ,r2r':i'j`1'Pv„61117 ii PART 11 -GOVERNING BODY APPROVAL We,the undersigned,certify that this App'!ication for Exemption from Audit nas oeen Prepared consistent with Section 29-1-604,C.R S which states that an Application with revenues and expenditures of 5100,000 or less must be prepared by a person skilled in governmental accounting; Completed to the best of our knowledge and is accurate and true; Personally reviewed and approved by a majority of the governing body. Note: Please list all current members of the governing body. Original signatures must be provided for a majority of the governing body if the application is mailed,or a resolution may be provided In lieu of original signatures. (Please sign using blue ink.) Name(print names of all current members of Date Term Original Signatu 'Unless solution is the governing body) Expires qh�) 1 Christopher R. Paulson May 2012 /7...-7 2 Joel H. Farkas May 2014 " n 3 Toni L. Serra May 2014 A ` 4 David Foster May 2012 i\NA h __ s John Todd May 2012 e 7 Page 5 Clifton Gunderson LLP (vilified Public Acm uni ants k Consuls ante Accountant's Compilation Report Board of Directors Resource Colorado Water and Sanitation Metropolitan District Weld County. Colorado We have compiled the Application for Exemption from Audit of Resource Colorado Water and Sanitation Metropolitan District as of and for the year ended December 31, 2010. included in the accompanying prescribed form. Our compilation is limited to presenting, in the form:prescribed by the Colorado State Auditor's Office. information that is the representation of mmnugetitem We have not audited or reviewed the accompanying Application for Exemption from Audit and, accordingly. do not express an opinion or provide any assurance about whether the Application for Exemption from Audit is in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and Ear presentation of the Application for Exemption Irma Audit in accordance with accounting principles generally accepted,in the United Slates of America, and for designing. implementing and maintaining internal control televant to the preparation and fair presentation of the Application for Exemption from Audit. Our responsibility is to conduct the compilation of the Application for Exemption from Audit in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information within the Application for Exemption from Audit without undertaking to obtain or provide any assurance that there arc no material modifications thin should be made to the Application for Exemption from Audit. The Application for Exemption from Audit is presented in accordance with the requirements of the Colorado Slate Auditor's Office, which differ from accounting principles generally accepted in the United States of America. This report is intended solely for the information and use of the Colorado Slate Auditor's Orrice and is not intended to be and should not be used by anyone other than this specifled party. We arc not independent vwith respect to Resource Colorado Wale' and Sanitatirlu_ Metropolitan District 4h4 - y4u."-da /LP Greenwood Village. Colorado March 2. "'GI I pinta.,u. .i v.m+ nut A u-Isiisgn m.IF HLB ron��nn..,nn EXHIBIT C Summary of Debt and Debt Authorization To: Weld County, CO From: McGeady Sisneros, PC Date: July, 2011 Re: Resource Colorado Water and Sanitation Metropolitan District Election Authorization as of 12/31/1O Principal Principal Principal Amount of Amount of Amount of Authorization Authorization Authorized Debt Used Remaining Purpose-Improvements 5A Streets $324,000,000.00 $0.00 $324,000,000.00 5B Water Supply System $324,000,000.00 $0.00 $324,000,000.00 5C Sanitary Sewer System $324,000,000.00 $0.00 $324,000,000.00 50 Mosquito Control $324,000,000.00 $0.00 $324,000,000.00 Improvements Total $1,296;000,000.00' $0.00 $1,296,000,000.00 Purpose-Other Authorizations Refunding of District debt or 5E other obligations $324,000,000.00 $0.00 $324,000,000.00 IGAs that are MFY obligations;payable from unlimited ad valorem 5F property tax levy $324,000,000.00 $0.00 $324,000,000.00 Operating Expenses and Reimbursement of Operating 5G Advances to the District $50,000,000.00 $0.00 $50,000,000.00 IGAs that are MFY obligations; payable from unlimited ad valorem 5H property tax levy $324,000,000.00 $0.00 $324,000,000.00 IGAs for Regional Improvements that are MFY 51 obligations Allowed Authority to Collect/Spend Facilities Fees, charges,tap 5J fees Allowed Note: IGA=Intergovernmental Agreement;MFY=Multiple Fiscal Year Debt: All authorized debt is in the form of revenue bonds or other obligations of the District including but not limited to contracts,leases and other agreements,except as otherwise noted. Date of Last Election: May 2, 2010 {00207116.DOC vI ) C-1 EXHIBIT D Intergovernmental Agreements Lost Creek Ground Water Management District Intergovernmental Agreement (07/10/05); describes the agreement for funding a USGS study and the sharing of the information derived from the study. A copy of this agreement previously provided with the 2006 Annual Report. Town of Keenesburg Agreement (4/25/06); sets forth the terms and conditions of the purchase of the water right associated with Well Permit No. 31652-FP by the Town from the District. A copy of this agreement previously provided with the 2006 Annual Report. Assignment(7/26/06); assigns all right, title and interest to the water right associated with Well Permit No. 31652-FP to the Town by the District. A copy of this agreement previously provided with the 2006 Annual Report. Easement Deed (7/26/06); grants an easement to the Town for access to the Tank Site. A copy of this agreement previously provided with the 2006 Annual Report. Agreement (7/26/06); sets forth the terms and conditions regarding certain specified obligations regarding the decrees and stipulations related to the water right associated with Well Permit No. 31652-FP. A copy of this agreement previously provided with the 2006 Annual Report. Agreement (7/26/06); defines the terms and conditions for the District to use and reuse the water right associated with Well Permit No. 31652-FP, subject to a certain reservation. A copy of this agreement previously provided with the 2006 Annual Report. Letter of Agreement(12/7/06); sets forth the understanding of the Town and the District with regard to the well water transmission line being installed by the Town from Well No. 31652-FP to the Town's water system and a proposed water storage tank site. (All rights associated with paragraph 4 of the agreement assigned to Pioneer Regional Water Activity Enterprise.) Copy attached. Intergovernmental Agreement (dated 6/22/07, effective 7/11/07); sets forth the obligations of the Town and the District with regard to the funding of a feasibility study regarding the joint use of the Keenesburg facility to provide service to Pioneer Regional Metropolitan District and Pioneer Metropolitan District Nos. 1-6 to serve Pioneer Communities Phase I. Copy attached. t00207116.DOC v:1 } D-1 Hello