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HomeMy WebLinkAbout20233813.tiffANNUAL REPORT FOR CALENDAR YEAR 2023 BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 The Beebe Draw Farms Metropolitan District No. 1 (the "District") hereby submits this annual report, as required pursuant to Section VII of the Amended and Restated Service Plan of the District approved on March 16, 2011 (the "Service Plan"). This annual report is being submitted to satisfy the reporting requirement for the year 2023 concerning activities completed between January 1, 2023 and December 31, 2023. Reporting of Significant Events. 1. Boundary changes made or proposed to the Districts' boundaries as of December 31 of the prior year. There have been no boundary changed for the year ending December 31 of the prior year. 2. Intergovernmental Agreements with other governmental entities, either entered into or proposed as of December 31 of the prior year. No Intergovernmental Agreements with other governmental entities were either entered into or proposed as of December 31 of the prior year. 3. Copies of the Districts' rules and regulations, if any, as of December 31 of the prior year. The District has not adopted any rules and regulations. 4. A summary of any litigation which involves the Public Improvements as of December 31 of the prior year. During the report year of 2023, the District was not involved in any litigation. 5. Status of the construction of the Public Improvements as of December 31 of the prior year. Public Improvements were not constructed in 2023. 6. A list of all facilities and improvements constructed by the District that have been dedicated to and accepted by the County as of December 31 of the prior year. No facilities or improvements were dedicated to or accepted by the County in 2023. 7. The estimated assessed valuation of the District for the current year. The estimated assessed valuation of the District for the current year is $10,208,470. 8. Current year budgets including a description of the Public Improvements, if any, to be constructed in such year. The District's 2024 Budget is attached hereto as Exhibit A. CoF1Mvn''co.+►onS 11 11312.4 x.023-3SSIS SDoOO1 BEEBE DRAW FARMS METRO DISTRICT NO. 1 ANNUAL BUDGET FOR YEAR ENDING DECEMBER 31, 2024 BEEBE DRAW METRO DISTRICT NO. 1 SUMMARY 2024 BUDGET WITH 2022 ACTUAL AND 2023 ESTIMATED For the Years Ended and Ending December 31, ACTUAL 2022 ESTIMATED 2023 BUDGET 2024 BEGINNING FUND BALANCES $ 12,543 $ 13,819 $ 17,740 REVENUES Property taxes Specific ownership taxes Conservation Trust Fund proceeds Interest income Other revenue Total revenues Total funds available EXPENDITURES General Fund 270,995 311,536 408,339 16,039 13,365 16,334 2,287 2,000 2,000 5,347 14,478 1,950 1 10,726 294,669 352,105 428,623 307,212 365,924 446,363 293,393 348,184 409,238 Total expenditures 293,393 348,184 409,238 Total expenditures and transfers out requiring appropriation 293,393 348,184 409,238 ENDING FUND BALANCES $ 13,819 $ 17,740 $ 37,125 EMERGENCY RESERVE AVAILABLE FOR OPERATIONS SPECIAL REVENUE RESERVE 1 $ 1,800 $ 2,800 $ 2,500 (443) 17,235 12,462 14,940 17,390 TOTAL RESERVE $ 13,819 $ 17,740 $ 37,125 No assurance provided. See summary of significant assumptions. 1 BEEBE DRAW METRO DISTRICT NO. 1 PROPERTY TAX SUMMARY INFORMATION 2024 BUDGET WITH 2022 ACTUAL AND 2023 ESTIMATED For the Years Ended and Ending December 31, ASSESSED VALUATION Residential Commercial Agricultural State assessed Vacant land Personal property Oil & Gas ACTUAL 2022 ESTIMATED 2023 BUDGET 2024 $ 5,089,820 $ 5,660,570 $ 7,603,770 430 220 840 800 1,820 340 9,580 1,930 791,820 513,910 750,900 251,500 442,150 343,980 640,110 1,229, 950 1,506,070 6,774,860 7,857,180 10,208,470 Certified Assessed Value $ 6,774,860 $ 7,857,180 $ 10,208,470 MILL LEVY General Total mill levy 40.000 40.000 40.000 40.000 40.000 40.000 PROPERTY TAXES General $ 270,994 $ 314,287 $ 408,339 Levied property taxes Refunds and abatements 270,994 314,287 408,339 1 (2,751) - Budgeted property taxes $ 270,995 $ 311,536 $ 408,339 BUDGETED PROPERTY TAXES General $ 270,995 $ 311,536 $ 408,339 $ 270,995 $ 311,536 $ 408,339 No assurance provided. See summary of significant assumptions. 2 BEEBE DRAW METRO DISTRICT NO. 1 GENERAL FUND 2024 BUDGET WITH 2022 ACTUAL AND 2023 ESTIMATED For the Years Ended and Ending December 31, ACTUAL 2022 ESTIMATED 2023 BUDGET II 2024 BEGINNING FUND BALANCES $ 2,533 $ 1,357 $ 2,800 REVENUES Property taxes Specific ownership taxes Interest income Other revenue 270,995 16,039 5,182 1 311,536 13,365 14,000 10,726 408,339 16,334 1,500 Total revenues 292,217 349,627 426,173 Total funds available 294,750 350,984 428,973 EXPENDITURES General and administrative Accounting County Treasurer's fee Directors' fees Insurance District management Legal Miscellaneous Payroll taxes Election Contingency Transfer to Authority - General Fund O&M Transfer to Authority - Amenities Fund (2019 D2 - Included lots) Transfer to Authority - Amenities Fund (2011 boundary lots) Transfer to Authority - Infrastructure Fund (2019 D2 Included lots) Operations and maintenance 17,531 23,000 17,000 4,070 4,675 6,125 1,400 2,300 1,000 3,489 4,675 5,000 8,300 10,487 16,000 7,146 10,439 15,000 4,276 1,500 262 400 16,262 33,626 2,000 200,256 214,578 266,958 2,306 2,689 5,610 4,682 26,423 50,206 27,951 10,754 22,439 Total expenditures 293,393 348,184 409,238 Total expenditures and transfers out requiring appropriation 293,393 348,184 409,238 ENDING FUND BALANCES $ 1,357 $ 2,800 $ 19,735 EMERGENCY RESERVE AVAILABLE FOR OPERATIONS TOTAL RESERVE $ 1,800 $ 2,800 $ 2,500 (443) - 17,235 $ 1,357 $ 2,800 $ 19,735 No assurance provided. See summary of significant assumptions. 3 BEEBE DRAW METRO DISTRICT NO. 1 SPECIAL REVENUE FUND 2024 BUDGET WITH 2022 ACTUAL AND 2023 ESTIMATED For the Years Ended and Ending December 31, ACTUAL 2022 ESTIMATED 2023 BUDGET 2024 BEGINNING FUND BALANCES $ 10,010 $ 12,462 $ 14,940 REVENUES Conservation Trust Fund proceeds 2,287 2,000 2,000 Interest income Total revenues 165 478 450 2,452 2,478 2,450 Total funds available 12,462 14,940 17,390 EXPENDITURES General and administrative Operations and maintenance Total expenditures Total expenditures and transfers out requiring appropriation ENDING FUND BALANCES $ 12,462 $ 14,940 $ 17,390 No assurance provided. See summary of significant assumptions. 4 BEEBE DRAW FARMS METRO DISTRICT NO. 1 2024 ADOPTED BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The District, a quasi -municipal corporation and a political subdivision of the State of Colorado, was organized by order and decree of the District Court Weld County on April 12, 2011, and is governed pursuant to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The District was established as part of a "Multiple District Structure" for the community. The District operates under a Service Plan approved by Weld County on January 27, 2012. The District's service area is located entirely within Weld County, Colorado. The District was established to provide financing for the acquisition, construction and installation of public improvements including, but not limited to, streets, sanitary sewer, storm sewer, drainage, water, and parks and trails, and to provide the operation and maintenance of these improvements. The District prepares its budget on the modified accrual basis of accounting in accordance with the requirements of Colorado Revised Statutes C.R.S. 29-1-105 using its best estimates as of the date of the budget hearing. These estimates are based on expected conditions and its expected course of actions. The assumptions disclosed herein are those that the District believes are significant to the budget. There will usually be differences between the budget and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. The Districts previously entered into that certain First Amendment to Authority Establishment Agreement, effective December 11, 2012. At elections of the qualified electors of the Districts, duly called and held on May 2, 2023, in accordance with law and pursuant to due notice (the "May 2023 Election"), a majority of those qualified to vote and voting at such elections, voted as follows: a. Broadband Authorization Question. Electors in both Districts authorized their respective District to provide all services, and to provide, purchase, lease, construct, maintain, operate, and finance facilities permitted by Title 29, Article 27 of the Colorado Revised Statutes, described as "Advanced Services," Telecommunications Services," and "Cable Television Services," including any new and improved high bandwidth services (the "Broadband Extension Services"). b. Multiple Fiscal Year IGA Mill Levy Question. Electors in both Districts approved a further amendment to the Establishment Agreement to authorize the Authority to provide Broadband Extension Services. c. Broadband Services — Additional O&M Mill Levy Applicable to Filing No. 1 of the Corrected First Filing Plat, Weld County, Colorado Recorded in the Real Property Records of Weld County on December 13, 1989 at Reception Number 02200074. District No. 1 electors voted in favor of imposing an additional operations and maintenance mill levy of 3.300 mills (the "Additional O&M Mill Levy") only until Two Hundred Thousand Dollars ($200,000) has been funded from the Additional O&M Mill Levy to replenish up to One Hundred Thousand Dollars ($100,000) each to the Authority's Amenities Fund and Infrastructure Fund used for the payment of all or any part of the costs to provide Broadband Extension Services to Filing No. 1 of the Corrected First Filing Plat, Weld County, Colorado Recorded in the Real Property Records of Weld County on December 13, 1989 at Reception Number 02200074 ("Filing No. 1"). As indicated herein, it is the intent of the Districts and the Authority to seek and secure grants to fund the Broadband Extension Services to Filing No. 1. 5 BEEBE DRAW FARMS METRO DISTRICT NO. 1 2024 ADOPTED BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided (continued) d. Than Filing No. 1 of the Corrected First Filing Plat, Weld County, Colorado Recorded in the Real Property Records of Weld County on December 13, 1989 at Reception Number 02200074. The electors of each District voted in favor of increasing their respective Districts' taxes by the imposition of a broadband extension fee or fees imposed in the amount of $650,000 annually, or by such lesser amount necessary, to pay for the Broadband Extension Services in all future filings after Filing No. 1 ("Future Filings") (the "Broadband Extension Fee"). The District has no employees and all administrative functions are contracted. Revenues Property Taxes Property taxes are levied by the District's Board of Directors. The levy is based on assessed valuations determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners to put the tax lien on the individual properties as of January 1 of the following year. The County Treasurer collects the determined taxes during the ensuing calendar year. The taxes are payable by April or, if in equal installments, at the taxpayer's election, in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. The County Treasurer remits the taxes collected monthly to the District. Pursuant to the AEA, District No. 1 agreed to impose the "Required Mill Levy" (as defined in the AEA) until 2018 and to transfer such revenues to the Authority for deposit into either the Infrastructure Account or the Amenities Account (as defined in the AEA). For tax collection year 2011 and thereafter, the Districts agreed to transfer all revenues from the "O&M Mill Levy" (as defined in the AEA) (the O&M Mill Levy") less the Districts' administrative costs to the Authority for deposit into the Authority's O&M account. The calculation of the taxes levied is displayed on the Property Tax Summary page of the budget using the adopted mill levy imposed by the District. The Districts are governed by an Amended and Restated Consolidated Service Plan for the Districts approved by the Weld County Board of County Commissioners (the "County") on March 16, 2011 (the "Service Plan"). As contemplated by the Service Plan, the Districts previously entered into that certain Beebe Draw Farms Authority Establishment Agreement By and Between Beebe Draw Farms Metropolitan District No. 1 and Beebe Draw Farms Metropolitan District No. 2, effective April 12, 2011, whereby the Authority was established (the "Establishment Agreement"). The calculation of the taxes levied is displayed on the Property Tax Summary page of the budget using the adopted mill levy imposed by the District. 6 BEEBE DRAW FARMS METRO DISTRICT NO. 1 2024 ADOPTED BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Revenues (continued) Property Taxes (continued) For property tax collection year 2024, SB22-238 and SB23B-001 set the assessment rates and actual value reductions as follows: Category Rate Category Rate Actual Value Reduction Amount Single -Family Residential 6.70% Agricultural Land 26.40% Single -Family Residential $55,000 Multi -Family Residential 6.70% Renewable Energy Land 26.40% Multi -Family Residential $55,000 Commercial 27.90% Vacant Land 27.90% Commercial $30,000 Industrial 27.90% Personal Property 27.90% 27.90% Industrial $30,000 Lodging 27.90% State Assessed Lodging $30,000 Oil & Gas Production 87.50% Specific Ownership Taxes Specific ownership taxes are set by the State and collected by the County Treasurer, primarily on vehicle licensing within the County as a whole. The specific ownership taxes are allocated by the County Treasurer to all taxing entities within the County. The budget assumes that the District's share will be equal to approximately 4% of the property taxes collected. District No. 1 is no longer obligated, pursuant to the District No. 1 Capital Pledge Agreement or the Establishment Agreement, to transfer specific ownership tax revenues to the Authority. Interest Income Interest earned on the District's available funds has been estimated based on an average interest rate of approximately 4.0%. Expenditures General and Administrative Expenditures General and administrative expenditures include the estimated cost of services necessary to maintain the District's administrative viability such as legal, accounting, insurance, membership dues, election and other administrative expenditures. BEEBE DRAW FARMS METRO DISTRICT NO. 1 2024 ADOPTED BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (continued) Intergovernmental Expenditures Pursuant to an Intergovernmental Agreement between Beebe Draw Farms Metropolitan Districts No. 1 and Beebe Draw Farms Authority, the District is obligated to impose a mill levy, not to exceed 40.000 mills, subject to certain adjustments, and remit property taxes derived from such mill levy, together with specific ownership taxes applicable to property within the District, after deducting administrative expenditures, to the Operating District. District No. 1 is no longer obligated, pursuant to the District No. 1 Capital Pledge Agreement or the Establishment Agreement, to transfer specific ownership tax revenues to the Authority. County Treasurer's Fees County Treasurer's fees have been computed at 1.5% of property tax collections. Debt and Leases The District has no outstanding debt, nor any operating or capital leases. Reserves Emergency Reserve TABOR requires local governments to establish emergency reserve. This reserve must be at least 3% of fiscal year spending. This information is an integral part of the accompanying budget. 8 From: To: Cc: Subject: Date: Attachments: Herschbera, Natalie CTB-weld-districts Navant, Robin Beebe Draw Farms Metro District No. I - 2023 Annual Report Friday, February 23, 2024 11:01:11 AM 2023 Annual Reoort - ne filed on DLG.adf Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. To whom it may concern, For your records please see the attached 2023 Annual Report for Beebe Draw Farms Metropolitan District No. 1. The annual report shall be filed with the Weld County Clerk & Recorder, the Division of Local Government and the State Auditor. Please confirm receipt of this email and attachment. 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