HomeMy WebLinkAbout20002223.tiff BEEBE DRAW FARMS
METROPOLITAN DISTRICT NO . 1
FINANCIAL STATEMENTS
and
SUPPLEMENTAL INFORMATION
DECEMBER 31 , 1999
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v chooneveld and Co., Inc.
Certified Public Accountants
EXHIBIT
I -
2000-2223
BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1
TABLE OF CONTENTS
DECEMBER 31, 1999
Page_
Independent Auditor's Report 1
General Purpose Financial Statements
Combined Balance Sheet- All Fund Types and Account Groups : -3
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - All Governmental Fund Types a-5
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - Actual and Budget - All Governmental Fund Types t.-8
Notes to Financial Statements 9- 17
Supplemental Information
Schedule of Debt Service Requirements to Maturity 18-19
Summary of Assessed Valuation, Mill Levy and Property Taxes
Collected ?0
Van „, ,, L.,,;, „
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Bea I
chooneveld and Co., Inc. ; ,,
Certified Public Accountants i • ( id
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Beebe Draw Farms Metropolitan District No. 1
Weld County, Colorado
We have audited the accompanying general purpose financial statements of Beebe Draw Farms
Metropolitan District No. 1 as of and for the year ended December 31, 1999, as listed in the
foregoing Table of Contents. These financial statements are the responsibility of the District s
management. Our responsibility is to express an opinion on these financial statements based en
our audit.
We conducted our audit in accordance with generally accepted auditing standards. "Tore
standards require that we plan and perform the audit to obtain reasonable assurance about vi hethcr
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit alto
includes assessing the accounting principles used and significant estimates made by managemen,
as well as evaluating the overall financial statement presentation. We believe that our auda
provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly in all
material respects, the financial position of Beebe Draw Farms Metropolitan District No I :tt
December 31, 1999 and the results of its operations for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The supplemental information as listed in the Table of C ornents is
presented for purposes of additional analysis and is not a required part of the general purpo e
financial statements of Beebe Draw Farms Metropolitan District No. 1. Such informatiln h.ts
been subjected to the auditing procedures applied in the audit of the general purpose finanj tl
statements and, in our opinion, is fairly stated in all material respects in relation to the p;enerr it
purpose financial statements taken
as a whole.
/ 4 p / C/j
14212-.
April 20, 2000, except for Note 2c for
which the date is May 31, 2000
6000 Greenwood Plata Blvd., #110 • Greenwood Village, CO 801 1 1-4817
303-779-4000 • FAX 303-770-9276 • E-mail: vscocpas@vscocpa.com
Members'.American Institute of Certified Public Accountants-S.E.C.and Private Practice Sections•Colorado Society of Cern Ed Publi. A,c:n Hants
GENERAL PURPOSE FINANCIAL STATEMENTS
BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 1999
Governmental Fund Types
Debt Capital
General Service Projects
ASSETS AND OTHER DEBITS Fund Fund Fund
ASSETS
Cash and investments $ 150,755 $ 166,909 $ 71 ,451
Cash held by Trustee
Cash held by County Treasurer
Accounts receivable 9,141
Property tax receivable 52,492 130,775
Property
OTHER DEBITS
Amount available in Debt Service Fund
Amount to be provided for retirement
of general long-term obligations
Total assets and other debits $ 212,388 $ 166,909 $ 202,226
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable $ 15,661 $ $ 7 ' .451
Accrued interest payable
Deferred property tax revenue 52,492 130,77°
Revenue note payable
Bonds payable
Total liabilities 68,153 202.226
EQUITY
Investment in general fixed assets
Fund balance (deficit)
Reserved 11,200 166.909
Unreserved and undesignated 133,035
Total equity 144,235 166,909
Total liabilities and equity $ 212,388 $ 166 909 202y226
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Account Groups
General General Totals
Fixed Long-Term (Memorandum Only)
Assets Obligations 1999 __1998
$ $ $ 389,115 $ 1,842,041
9,364
2,228
9,141
183,267 268,900
5,326,421 5,326,421 1 ,814,867
166,909 166,909 505,904
2,233,091 2,233,091 _1,494,096
$ 5,326,421 $ 2,400,000 $ 8,307,944 $_ 5,937,400
$ $ $ 87,112 $ 146,422
9,364
183,267 268,900
400,000 400,000
2,000,000 2.00O 2,000,000
2,400,000 2,670,379 2,424,686
5,326,421 5,326,421 1,814,867
178,109 1,438,720
133 O35 259,127
5,326 421 5,637 565 _3,512,714
$ 5,326 421 $ 2,400,000 $ 8,307,944 $ 5,937,400
The accompanying notes are an integral part of the financial statements.
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BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN
FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1999
Special Debt Capital
General Revenue Service Projects
Fund Fund Fund Fund
REVENUE
Property taxes $ 78,239 $ $ $ 194.k 22
Specific ownership taxes 31,375
Developer fees 232,500
Tap fees 46,500
Lease revenue 27,141
Interest 10,674 17,382 13.'107
Intergovernmental 24
Total revenue 147,453 279,000 17,382 208.129
EXPENDITURES
Current
Legal 24,436 27. 59
Insurance 3,392
Audit and accounting 10,149
Directors' fees 1,875
County Treasurer's fees 760 1.19:
Lake lease 30,157
Maintenance 23.- 80
Miscellaneous 5,016 300
Rent 3,600
Debt service
Interest 120,296
Bond issue costs
Capital outlay 680,860 1 505 1 94
Total expenditures 79,385 _ 680,860 _ 120,5% _ 1 ,558 `-26
EXCESS REVENUE OVER
(UNDER) EXPENDI[TURES 68,068 (401,860) _ (103,214) _J 349,097)
OTHER FINANCING SOURCES
Operating transfers in (out) (193,260) 1,860 191 . -00
Proceeds from revenue note 400,000
Proceeds from general obligation bonds
Total other financing sources (193,260) _ 401,860 _ 191.400
EXCESS REVENUE AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDIITIJRES (125,192) (103,214) ( ,158. '.97)
FUND BALANCE - BEGINNING OF
YEAR 269,427 270, 12:. 1 158, 19'7
FUND BALANCE - END OF YEAR $ 144,235 $ -0- $ 166,%9 $ -0
-4-
Totals
(Memorandum Only)
1999 1998
$ 273,161 $ 255,726
31,375 27,755
232,500
46,500
27,141 26,443
41,963 33,830
24 35
652,664 343,789
51,795 31,366
3,392 4,022
10,149 9,042
1,875 2,775
2,653 2,579
30,157 29,381
23,480
5,316 12,125
3,600 3,600
120,296
92,404
2,186,654 966,996
2,439,367 1,154,290
(1,786,703) (810,501)
400,000
2,000,000
400.000 2,000,000
(1,386,703) 1,189,499
1,697 847 508,348
$ 311 144 $ 1,697,847
The accompanying notes are an integral part of the financial statements.
-5-
BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN
FUND BALANCE - ACTUAL AND BUDGET
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1999
General Fund
Variance-
Amended Favorable
Actual Budget _ (Unfav_orable)
REVENUE
Property taxes $ 78,239 $ 77.036 $ 1 ,203
Specific ownership taxes 31,375 32.000 (625)
Developer fees
Tap fees
Lease revenue 27,141 33.000 (5,859)
Interest 10,674 15.000 (4,326)
Intergovernmental 24 _ 50 (26)
Total revenue 147,453 _ 157.086 _±)633)
EXPENDITURES
Current
Legal 24,436 25,000 504
Insurance 3,392 4,000 608
Audit and accounting 10,149 13,000 851
Directors' fees 1,875 3,750 ,87_`
County Treasurer's fees 760 770 I(
Lake lease 30,157 30,000 ( 15")
Maintenance
Miscellaneous 5,016 7.780 '_.704
Rent 3,600 3,600
Debt service
Interest
Bond issue costs
Capital outlay
Total expenditures 79,385 87 900 8 515
EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES 68,068 69,186 L I Ih)
OTHER FINANCING SOURCES
Operating transfers in (out) (193,260) (193,260)
Proceeds from revenue notes —_—_
Total other financing sources _ (193,260) (193 260)
EXCESS OF REVENUE AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES (125,192) (124,074) (1,118)
FUND BALANCE - BEGINNING OF YEAR 269,427 269 427
FUND BALANCE (DEFICIT) -
END OF YEAR $_ 144,235 $ 145 353 $____Sl I Ir)
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Special Revenue Fund _ Debt Service Fund _
Variance- Variance
Amended Favorable Favorable
_Actual Budget (Unfavorable) Actual _ Budget (Unfavorable)
$ $ $ $ $ $
232,500 542,500 (310,000)
46,500 144,355 (97,855)
17,382 25,000 ("x,6181
279 000 686,855 (407,855) 17,382 25,000
5,000 5,000
300 (300)
120,296 129,660 9,364
_ 680,860 565,200 (115,660) _
680,860 570,200 (110,660) 120,596 129,660 _ 9_,064
_101,860) 116,655 (518,515) (103,214) (104,660) _ 1446
1,860 (615,655) 617,515
400,000 _ 500,000 (100,000)
401,860 _(115,655) 517,515
1,000 (1,000) (103,214) (104,660) 1446
270,123 505,144 - (235,921 )
$ -0- $_ 1,000 $ (1,000) $ 166,909 I 400,484 S (233,575)
(Continued)
-7-
BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN
FUND BALANCE - ACTUAL AND BUDGET
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED DECEMBER 31, 1999
(Continued)
Capital Projects Fund
Variance-
Favorable
Actual Budget (Unfavorable'
REVENUE
Property taxes $ 194,922 S 191,922 $ 00G
Specific ownership taxes
Developer fees
Tap fees
Lease revenue
Interest 13,907 30,000 (16,093)
Intergovernmental
Total revenue 208,829 221,922 ____(_43 093)
EXPENDITURES
Current
Legal 27,359 (2''.359)
Insurance
Audit and accounting
Directors' fees
County Treasurer's fees 1,893 1,919 2t:
Lake lease
Maintenance 23,480 (21,486)
Miscellaneous
Rent
Debt service
Interest
Bond issue costs
Capital outlay 1 505,794 1,746,262 240)468
Total expenditures 1 558,526 1,748,181 _ 189 655
EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES _J1 349,697) (1,526,259) 175 56
OTHER FINANCING SOURCES
Operating transfers in (out) 191,400 615,655 ¶424.25 )
Proceeds from revenue notes
Total other financing sources 191,400 615,655 (4244 25`x)
EXCESS OF REVENUE AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES (1,158,297) (910,604) 1247,693)
FUND BALANCE - BEGINNING OF YEAR 1 158,297 910 6O4 _ 247,69.;
}
FUND BALANCE (DEFICIT) -
END OF YEAR $ _ -0- $ -0- _0
The accompanying notes are an integral part of the financial statements.
-8-
BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
NOTE 1) DEFINITION OF REPORTING ENTITY
The District, a quasi-municipal corporation, is governed pursuant to provisions of
the Colorado Special District Act. The District's service area is located in Weld
County, Colorado. The District was established to provide water, parks and
recreational facilities, street and drainage improvements, safety protection and
related services.
During 1999, the District's service plan was amended. A new district, Beebe
Draw Farms Metropolitan District No. 2 was created and the District's name was
changed from Beebe Draw Farms Metropolitan District to Beebe Draw Farris
Metropolitan District No. 1.
The District has no employees and all operations and administrative functions are
contracted.
The District follows the Governmental Accounting Standards Board (GASH)
accounting pronouncements which provide guidance for determining which
governmental activities, organizations and functions should he included wi hin the
financial reporting entity. GASH 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 governin; hotly,
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.
NOTE 2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant accounting policies of the District are described as follow s:
a) Fund Accounting
The accounts of the District are organized on the basis of funds or account
groups, each of which is considered a separate accounting entity Fund
types and account groups used by the District are described below.
Governmental Fund Types
General Fund - The General ]Fund is the general operating func of he
District. It is used to account for all financial resources except those
required to he accounted for in other funds.
-9-
Special Revenue Fund - The Special Revenue Fund is used to collect and
disburse monies earmarked for specific purposes due to either legal or
contractual arrangements. The District has established the Water Enterprise
Fund for water related activities. The District has chosen to use this type
of fund because currently, actual water services are provided by Cernral
Weld County Water District (see Note 10) and the fees collected in this
fund are being used for capital outlay and debt service requirements orb. .
Debt Service Fund - The Debt Service Fund is used to account for the
accumulation of resources for, and the payment of general long-term
obligation principal, interest and related costs.
Capital Projects Fund - The Capital Projects Fund is used to account for
financial resources to be used for the acquisition or construction of major
capital facilities.
Account Groups
General Fixed Assets Account Group - This group of accounts is
established to account for recorded fixed assets of the District.
General Long-Term Obligations Account Group - This group of accounts
is established to account for all long-term obligations, including claim
liabilities, of the District, except those accounted for in the proprietary fund
types.
b) Basis of Accounting
The modified accrual basis of accounting is followed in the governmental
fund types. Revenue is recorded when susceptible to accrual, i.e., both
measurable and available. Available means collectible within the current
period or soon enough thereafter to be used to pay liabilities of the current
period. The major sources of revenue which are susceptible to accrual are
property taxes. Expenditures, other than interest on long-term obligations
are recorded when the liability is incurred or the long-term obligation paid.
c) Budgets
In accordance with the State Budget Law, the District's Board of Directors
holds public hearings in the fall 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.
Encumbrance accounting (open purchase orders, contracts in process and
other commitments for the expenditures of funds in future periods) is not
used by the District for budget or financial reporting purposes.
-10-
During the year ended December 31, 1999, supplementary appropriations
approved by the District modified the appropriation in the Special Revenue
Fund from $685,855 to $1,185,855. Subsequent to the year ended
December 31, 1999, supplementary appropriations approved by the District
modified the appropriation in the General Fund from $79,900 to $281, 160.
d) Pooled Cash
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 hank
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.
e) General Fixed Asset Account Group
Property is stated at cost. No depreciation is provided on general fixed
assets.
t) Property Taxes
Property taxes are levied by the District 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 tarpayr rs
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 revenue are recorded as revenue in the year they are
available or collected.
g) Fund Equity
Fund Balance
The fund balances have been reserved for that portion of the fund balance
that is legally segregated or is not subject to future appropriation.
Designations of unreserved fund balances indicate management's intention
for future utilization of such funds and are subject to change by
management.
-11-
The District considers all unreserved fund balances to be "reserves" tor
future operations or capital replacement as defined within Article X, Section
20 of the Constitution of the State of Colorado (see Note 9).
Reserved Fund Balance
Article X, Section 20 of the Constitution of the State of Colorado requires
the District to establish Emergency Reserves (see Note 9). $11.200 of the
fund balance has been reserved in compliance with this requirement.
The fund balance in the Debt Service Fund is reserved for future ,ener al
obligation debt.
h) Totals (Memorandum Only)
Total columns on the combined statements are captioned "(Memorandum
Only)"because they do not represent consolidated financial information and
are presented only to facilitate financial analysis. Data in these columns do
not present financial position or results of operations, in conformity with
generally accepted accounting principles. Neither is such data comparable
to a consolidation. lnterfund eliminations have not been made in the
aggregation of this data.
NOTE 3) CASH AND INVESTMENTS
Cash Deposits
The Colorado Public Deposit Protection Act(PDPA) requires that all units pf lot.al
government deposit cash in eligible public depositories. Eligibility is determined
by state regulators. Amounts on deposit in excess of federal insurance levels must
be collateralized_ The eligible collateral is determined by the PDPA.. PDI'A
allows the institution to create a single collateral pool for all public fund. Tne
pool for all the uninsured public deposits as a group is to be maintained by :mother
institution or held in trust. The market value of the collateral must be at least eqt al
to the aggregate uninsured deposits.
The State Regulatory Commissions for banks and financial services are required
by Statute to monitor the naming of eligible depositories and reporting of the
uninsured deposits and assets maintained in the collateral pools.
At December 31, 1999, the District's cash deposits had a bank balance and a
carrying balance as follows:
Carrying Bank
Balance Balance
Insured deposits $ 173,175 $ 200,001
Deposits required to he collateralized
in single institution pools 134,680 147 52-4
307 855 $ _347 524
-12-
Investments
Colorado statutes specify investment instruments meeting defined rating and risk
criteria in which local governments may invest which include:
Obligations of the United States and certain U.S. government agency
securities
Certain international agency securities
General obligation and revenue bonds of U.S. local government entities
Bankers' acceptances of certain banks
Commercial paper
Written repurchase agreements collateralized by certain authorized securities
Certain money market funds
Guaranteed investment contracts
Local government investment pools
The District's investments are recorded at fair value. Investments in local
government investment pools or in money market funds are not categorized because
they are not evidenced by securities that exist in physical or book entry form.
Not Subject to Categorization
Local government investment pool 81,260
Total cash deposits and investments $ 389,115
As of December 31, 1999, the District had invested in the Colorado Local
Government Liquid Asset Trust (the Trust), an investment vehicle established f 1r
local government entities in Colorado to pool surplus funds. The State Securities
Commissioner administers and enforces all State statutes governing the Trust. The
Trust operates similarly to a money market fund and each share is equal in value
to $1.00. The Trust offers shares in two portfolios, COLOTRUST PRIME and
COLOTRUST PLUS+. Both portfolios may invest in U.S. Treasury securities
and repurchase agreements collateralized by U.S. Treasury .securities.
COLOTRUST PLUS+ may also invest in certain obligations of U.S. gove-nmentt
agencies, highest rated commercial paper and repurchase agreements collateralized
by certain obligations of U.S. government agencies. A designated custodial bank
serves as custodian for the Trust's portfolios pursuant to a custodian agreement.
The custodian acts as safekeeping agent for the Trust's investment portfol os and
provides services as the depository in connection with direct investments and
withdrawals. The custodian's internal records segregate investments owner by tie
Trust. As of December 31, 1999, the District had $81,260 invested in
COLOTRUST PRIME.
Restricted Cash and Investments
Debt Service cash and investments in the amount of $166,909 at December 3 l,
1999 are restricted for debt service applicable to the 1998 General Obligation
Bonds (see Note 5).
-13-
NOTE 4) PROPERTY
An analysis of the changes in property for the year ended December 31. 1999
follows:
Balance at Balance at
January December
By Classification 1, 1999 _Additions Retirements 311999_
Land $ 128,375 $1,354,600 $ $ 1,48'2,975
Roads 600,779 763,543 1.364,322
Water distribution facilities 564,616 348,744 913,360
Offsite water facilities 300,000 300,000
Water capacity 115,100 680,860 29,700 766.260
Recreation facilities 105,997 393,507 _ 499_,504
$ 1,814,867 $3,541,254 $ 29,700 $ 5,326 4:21
By Source
Contributed $ 122,000 $ 1,354,600 $ $ 1.476,60(:
Long-term debt obligations 1,505,249 1,303,004 29,700 2.778,553
Capital Projects Fund revenue 187,618 883,650 1 O71 26I.
$ 1,814,867 $3,541,254 $ 29,700 $ 5,326,421
Water system capacity (see Note 10) is reduced as tap connections are sold.
NOTE 5) LONG-TERM OBLIGATIONS
The following is an analysis of changes in long-term obligations for the year ended
December 31, 1999:
Balance Balance
January 1, New December
1999 Issues Retirements 311999_
1998 General Obligation Bonds $2,000,000 $ $ $ 2.000.000
1999 Revenue Note 400,000 400 O00
$2,000,000 $ 400,000 $ -0- $ 2 400,000
The detail of the District's long-term obligations is as follows:
$2,000,000 General Obligation Bonds, Series 1998, dated October 1, 1998. (1n
October 21, 1998, the District issued $2,000,000 in General Obligation Bonds for
streets, water and park and recreation improvements. A portion of the bond
proceeds were recorded in the Debt Service Fund to pay issuance costs and bond
interest during the subsequent construction period.
The bonds are term bonds in the amount of $635,000 due Octobei 1 . 2009,
$665,000 due October 1, 2014 and $700,000 due October 1, 2018. The bonds a:re
subject to mandatory redemption commencing in 2001. Bonds maturing on and
after October 1, 2009 are callable at the option of the District beginning October
1, 2008 and thereafter without call premium. Interest is payable semiannually at
6%, 6.4% and 7%, respectively.
-14-
$400,000 Subordinate Revenue Note, dated August 20, 1999. The note was
issued for the acquisition of water rights and water distribution facilities
improvements. Interest is payable semiannually on February 20 and August 20 at
7%. The note matures on August 19, 2004. A portion of the note, in integral
multiples of $5,000, can be called on any interest date without premium
The note was issued by the District's water enterprise and is secured by tn
irrevocable lien, but not necessarily an exclusive lien, on the available net revenue
of the District's water activities, including tap and developer fees, but excluding
property tax revenue. The note is subordinate to the 1998 General Ohligatinm
Bonds.
The District's long-term obligations will mature as follows:
Principal Interest Total
2000 $ $ 157,660 $ 157.6611
2001 5,000 157,660 162,661)
2002 5,000 157,360 162,360
2003 70,000 157,060 2"2.7,060
2004 475,000 152,860 627.860
Thereafter 1,845,000 1,051 920 2 895,92u
$2,400,000 $ 1,834 520 $ 4 2'3-4 52(!
The voters of the District have passed the following questions to increase debt
Maximum
Annual
Maximum Propert
Debt Interest Tax
Increase Rate Increase
November 2, 1993 $ 2,000,000 9% $ 280,000
November 5, 1996 3,000,000 10% 450,001)
November 3, 1998 6,000,000 12% 900,001)
November 2, 1999 20,590,000 10% 0-
At December 31, 1999, the District had authorized but unissued indebtedness in the
following amounts allocated for the following purposes:
Parks and recreational facilities $ 4,239,000
Water facilities 11,454,000
Street improvements 13,547 000
$ 29,240,000
NOTE 6) RELATED PARTIES
The primary developer of real property in the District is R.E.I. Limited Liability
Company (Developer), successor in interest to Beebe Draw Farms, Ltd. Certain
members of the Board of Directors are associated with the Developer. During
1999, the Developer contributed land valued at $1 ,354,600 to the District.
-15-
NOTE 7) COMMITMENTS
Operating Lease and Sublease
On March 4, 1987, the Developer (see Note 6) entered into a grazirg and
recreation lease for Milton Lake and surrounding land in Weld Count,—
Subsequent
Subsequent to that date, the Developer assigned the lease to the District. The lease
continues through 2016 and requires annual payments of $20,000 plus an
adjustment for the change in the Consumer Price Index, which amounted �o
$10,157 for 1999. The annual payment due over the last 12 years of the Lase s
subject to renegotiation by both parties. If the fair market rental value of ti e
property increases for any two consecutive years at a rate in excess of the
Consumer Price Index adjustment, the rate must increase in accordance with sun h
increased fair market rental value.
The District has also been assigned a sublease of the above described propert .
The lease income to the District for the year ended December 31, 1999 was
$27,141. The term of the sublease continues through 2004.
Construction Commitments
As of December 31, 1999, the District had unexpended construction contrast
commitments of$303,877.
NOTE 8) RISK MANAGEMENT
The District is exposed to various risks of loss related to torts, thefts of asset if
errors or omissions, or acts of God. The District maintains commercial insurance
for all risks of loss. Settled claims have not exceeded this commercial coverage
in any of the past three fiscal years.
NOTE 9) TAX, SPENDING AND DEBT LIMITATIONS
Article X, Section 20 of the Colorado Constitution, commonly known 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.
TABOR requires local governments to establish Emergency Reserves. Their:
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.
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The District's management believes, after consultation with legal counsel, that 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.
On November 3, 1998, the voters of the District approved the retention of all
property taxes collected from a levy of 40 mills and all other District revenue n
1998 and annually thereafter without limitation under TABOR or other laws.
NOTE 10) INTERGOVERNMENTAL AGREEMENT
On June 27, 1995, the District entered into a contract with the Central We d
County Water District (Water District) and the R.E.I. Limited Liability Company
(Developer) (see Note 6). The Developer is planning an eight hundred unit
residential development within District boundaries. The District or the Developer
agree to construct or reimburse the Water District for construction costs o;water
facilities directly related to the development. The Water District will assume all
operation, maintenance, repair and replacement of all water facilities upon
acceptance and completion.
In June 1997.. the District paid the Water District a nonrefundable contribution for
the construction of offsite transmission and water storage facilities in the amount
of $300,000. As the District obtains water rights, they are given to the Water
District in return for the right to agreed upon levels of water capacity.
NOTE 11) DEVELOPER FEE AND WATER TAP FEE AGREEMENT
On December 8, 1998, the District entered into a Developer Fee and Water Tap
Fee Agreement with the Developer (see Note 6). This agreement requires a
Developer Fee of$15,500 per lot and a Water Tap Fee of$4,500 per lot to he paid
to the District on or before the transfer or sale of each lot. Such fees constitute a
statutory lien on each lot, subject to release upon payment of the fees.
Additionally. the agreement requires the Developer to make the following
minimum payment of Developer Fees:
Number Mininmm
Date of Lots Amount
By ]December 31, 2000 6 $ 93,000
By December 31, 2001 11 __ 170 501 i
17 1__203 5011
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THIS PAGE LEFT BLANK INTENTIONALLY
SUPPLEMENTAL INFORMATION
BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. I
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
DECEMBER 31, 1999
$2,000,000 General Obligation Bonds
Dated October 1, 1998
Interest Rate 6.0%, 6.4% and 7.0%
Bonds and Interest Payable April 1 and October 1
Maturing in the Principal Due October 1
Year Ending December 31, Principal Interest _ Total
2000 $ $ 129,660 $ 129,661
2001 5,000 129,660 134.66)
20O2 5,000 129,360 134,36)
2003 70,000 129,060 199,06')
2004 75,000 124,860 199,861
2005 85,000 120,360 205,36)
2006 90,000 115,260 205,26)
2007 95,000 109,860 204,86)
2008 100,000 104,160 204, 161
2009 110,000 98,160 208,161
2010 115,000 91,560 206,561
2011 125,000 84,200 209.20o
20112 135,000 76,200 211,20+1
20)13 140,000 67,560 207.56+I
20114 150.000 58,600 208.60)
2015 160,000 49,000 20),C4)0
20116 170,000 37,800 27,801
20117 180,000 25,900 205.90)
20118 190,000 13,300 _ 2C3 3011
$ 2,000,000 $ 1,694,520 $ 3,694 520
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$400,000 Subordinate Revenue Note
Dated August 20, 1999
Interest Rate 7%
Payable February 20 and August 20_ Total
Principal Interest Total _ Principal Interest _ Total _
$ $ 28,000 $ 28,000 $ $ 157,660 $ 157,660
28,000 28,000 5,000 157,660 162,660
28,000 28,000 5,000 157,360 162,_60
28,000 28,000 70,000 157,060 227,060
400,000 28,000 428,000 475,000 152,860 627,860
85,000 120,360 205,:60
90,000 115,260 205,::60
95,000 109,860 2(4,860
100,000 104,160 204,160
110,000 98,160 208,'60
115,000 91,560 206.`60
125,000 84,200 209.:'00
135,000 76,200 211,:'00
140,000 67,560 207,:,60
150,000 58,600 208t00
160,000 49,000 209,000
170,000 37,800 207.800
180,000 25,900 205.'100
190,000 13,300 203...400
$ 400,000 Sli_ 140,000 $ 540,000 $ 2,400,000 $ 1,834,520 $ 4 2234_120
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BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1.
SUMMARY OF ASSESSED VALUATION, MILL LEVY
AND PROPERTY TAXES COLLECTED
DECEMBER 31, 1999
Prior Year
Valuations for Current
Year Property Tax Levy
Statutory Mills Levied Perce it
Collection Actual Assessed Debt Capital Total Property Taxes _ Collected
Year Valuation Valuation General Service Projects Total Levied _ Collected to Levied
1995 $ 8,000,708 $ 7,120,160 9.941 30.059 40.000 $ 284,806 $ 285. 50 lOt 7'5
1996 $ 9,530,713 $ 8,449,710 9 413 30.587 40.000 $ 337,988 $ 339,:84
1997 $ 6,843,802 $ 6,022,820 11.457 28.543 40.000 $ 240,913 $ 214,( 63 8@: 9'I
1998 $ 7,245,239 $ 6,449,401) 11.457 28.543 40.000 $ 257,980 $ 255:26 9', 1 'V
1999 $ 7,605,384 $ 6,723,950 11.457 28.543 40.000 $ 268,958 $ 273, '61
Estimated
for 2000 $ 5,136,316 $ 4,581,690 11.457 28.543 40.000 $ 183,267
NOTE:
Property taxes collected in any one year include collection of delinquent property taxes or abatements of pro )erL_
taxes levied in prior years. Information received from the County Treasurer does not permit identificatt,n of
specific year of assessment.
Statutory actual values shown were obtained from the Weld County Assessor and represent the total actual aloe
of real property as defined in Article X, Section 20 of the State Constitution.
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