HomeMy WebLinkAbout20213604.tiffLIBERTY RANCH METROPOLITAN DISTRICT
Weld County, Colorado
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2021
LIBERTY RANCH METROPOLITAN DISTRICT
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2021
INDEPENDENT AUDITOR'S REPORT
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
STATEMENT OF ACTIVITIES
FUND FINANCIAL STATEMENTS
BALANCE SHEET - GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUNDS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
GENERAL FUND - STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
NOTES TO BASIC FINANCIAL STATEMENTS
SUPPLEMENTARY INFORMATION
DEBT SERVICE FUND - SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL PROJECTS FUND - SCHEDULE OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND
ACTUAL
OTHER INFORMATION
2
3
4
5
6
7
23
24
SUMMARY OF ASSESSED VALUATION, MILL LEVY, AND PROPERTY
TAXES COLLECTED 26
WIPFLI
Board of Directors
Liberty Ranch Metropolitan District
Weld County, Colorado
Opinions
14143 Denver W Parkway #450 303 988 1900
Lakewood, CO 80401 wipfli.com
Independent Auditor's Report
We have audited the accompanying financial statements of the governmental activities and each
major fund of Liberty Ranch Metropolitan District (the "District"), as of and for the year ended
December 31, 2021, and the related notes to the financial statements, which collectively comprise
the District's basic financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and each major fund of
Liberty Ranch Metropolitan District as of December 31, 2021, and the respective changes in
financial position and the respective budgetary comparison for the general fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS). Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are
required to be independent of the District and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America (GAAP),
and for the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the District's
ability to continue as a going concern twelve months beyond the financial statement date, including
any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinions. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the District's internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control —related matters that we identified during the audit.
I I
Other Matters
Required Supplemental Information
Management has omitted the management's discussion and analysis that accounting principles
generally accepted in the United States require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. Our opinions on the basic financial statements are not affected by
this missing information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District's basic financial statements. The supplementary information as
listed in the table of contents is presented for the purposes of legal compliance and additional
analysis and is not a required part of the basic financial statements. The supplementary information
is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, such information is
fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Information
The other information, as listed in the table of contents, has not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material misstatement
of the other information exists, we are required to describe it in our report.
640-64 .L.60
Wipfli LLP
Lakewood, Colorado
September 30, 2022
III
LIBERTY RANCH METROPOLITAN DISTRICT
STATEMENT OF NET POSITION
DECEMBER 31, 2021
Governmental
Activities
ASSETS
Cash and Investments
Cash and Investments - Restricted
Receivable - County Treasurer
Prepaid Expense
Property Taxes Receivable
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Cost of Refunding
Total Deferred Outflows of Resources
LIABILITIES
Accounts Payable
Accrued Bond Interest
Noncurrent Liabilities:
Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Property Tax Revenue
Total Deferred Inflows of Resources
NET POSITION
Restricted for:
Emergency Reserve
Unrestricted
$ 99,339
31,986
1,883
2,992
458,111
594,311
33,196
33,196
14,476
57,663
13,522,385
13, 594, 524
458,111
458,111
2,000
(13,427,128)
Total Net Position $ (13,425,128)
See accompanying Notes to Basic Financial Statements.
(1)
LIBERTY RANCH METROPOLITAN DISTRICT
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2021
FUNCTIONS/PROGRAMS
Primary Government:
Governmental Activities:
General Government
Interest and Related Costs on
Long -Term Debt
Total Governmental Activities
See accompanying Notes to Basic Financial Statements.
Expenses
55,392
1,816,342
Program Revenues
Net Revenues
(Expenses) and
Changes in
Net Position
Charges Operating Capital
for Grants and Grants and Governmental
Services Contributions Contributions Activities
$ 1,871,734
GENERAL REVENUES
Property Taxes
Property Taxes - URA
Specific Ownership Taxes
Net Investment Income
Total General Revenues
CHANGES IN NET POSITION
Net Position - Beginning of Year
NET POSITION - END OF YEAR
(2)
$ (55,392)
(1,816,342)
(1,871,734)
428,597
23,948
22,737
310
475,592
(1,396,142)
(12,028,986)
$ (13,425,128)
LIBERTY RANCH METROPOLITAN DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2021
ASSETS
Cash and Investments
Cash and Investments - Restricted
Receivable - County Treasurer
Prepaid Expense
Property Taxes Receivable
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
OF RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Property Tax Revenue
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Prepaid Expenditures
Restricted for:
Debt Service
Capital Projects
Emergency Reserves
Assigned for:
Subsequent Year Expenditures
Unrestricted
Total Fund Balances
General
Total
Debt Capital Governmental
Service Projects Funds
99,339 $
2,000
260
2,992
63,187
- $
29,986
1,623
394,924
$ 99,339
31,986
1,883
2,992
458,111
167,778 $ 426,533 $ $ 594,311
3,013 $ 11,463 $ $ 14,476
3,013 11,463 14,476
63,187 394,924 458,111
63,187 394,924 458,111
2,992
20,146
2,992
20,146
2,000 2,000
25,534
71,052
25,534
71,052
101,578 20,146 - 121,724
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 167,778 $ 426,533 $
Amounts reported for governmental activities in the statement
of net position are different because:
Long-term liabilities, including bonds payable and Developer
advances, are not due and payable in the current period and,
therefore, are not reported in the funds.
Developer Advance Payable
Accrued Interest on Developer Advances
Accrued Bond Interest Payable
Bonds Payable
Cost of Refunding
(215,642)
(126,743)
(57,663)
(13,180,000)
33,196
Net Position of Governmental Activities $ (13,425,128)
See accompanying Notes to Basic Financial Statements.
(3)
LIBERTY RANCH METROPOLITAN DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2021
Total
Debt Capital Governmental
General Service Projects Funds
REVENUES
Property Taxes
Property Tax - URA
Specific Ownership Tax
Interest Income
Total Revenues
EXPENDITURES
Accounting
Audit
County Treasurer's Fee
Dues
Insurance
District Management
Legal
Miscellaneous
Paying Agent Fees
Bond Interest - Series 2017A
Bond Interest - Series 2017B
Bond interest - Series 2017C
Bond Principal - Series 2017A
Bond Principal - Series 2017B
Bond principal - Series 2017C
Bond issue costs
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer from (to) Other Fund
Bond Issuance
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year
FUND BALANCES - END OF YEAR
See accompanying Notes to Basic Financial Statements.
59,119 $ 369,478 $ $ 428,597
3,303 20,645 23,948
3,136 19,601 22,737
75 235 310
65,633 409,959 475,592
15,227
4,100
887
320
2,993
10,871
18,564
371
5,545
5,500
405,250
285,909
1,697,832
5,090,000
2,204,000
3,485,000
600,631
15,227
4,100
6,432
320
2,993
10,871
18,564
371
5,500
405,250
285,909
1,697,832
5,090,000
2,204,000
3,485,000
600,631
53,333 13,779,667 13,833,000
12,300 (13,369,708) (13,357,408)
(3,489)
3,533
13,180,000
(44)
13,180,000
(3,489) 13,183,533 (44) 13,180,000
8,811 (186,175) (44) (177,408)
92,767 206,321 44 299,132
(4)
101,578 $ 20,146 $ 121,724
LIBERTY RANCH METROPOLITAN DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2021
Net Change in Fund Balances - Total Governmental Funds $ (177,408)
Amounts reported for governmental activities in the statement of activities are different
because:
The issuance of long-term debt (e.g., bonds, Developer advances) provides current
financial resources to governmental funds, while the repayment of the principal of
long- term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also, governmental
funds report the effect of premiums, discounts, and similar items when debt is first
issued, whereas these amounts are deferred and amortized in the statement of
activities.
Bond Proceeds
Bond Principal Payment
Amortization of Cost of Refunding
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Accrued Interest on Bonds - Change in Liability
Accrued Interest on Developer Advance - Change in Liability
(13,180, 000)
10,779,000
(2,059)
1,172, 907
11,418
Changes in Net Position of Governmental Activities $ (1,396,142)
See accompanying Notes to Basic Financial Statements.
(5)
LIBERTY RANCH METROPOLITAN DISTRICT
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2021
Variance with
Original Final Budget
and Final Actual Positive
Budget Amounts (Negative)
REVENUES
Property Taxes
Property Tax - URA
Specific Ownership Tax
Interest Income
Total Revenues
EXPENDITURES
Accounting
Audit
County Treasurer's Fee
Dues
Insurance
District Management
Legal
Miscellaneous
Election
Total Expenditures
$ 59,159 $ 59,119 $ (40)
3,303 3,303
3,123 3,136 13
1,750 75 (1,675)
67,335
65,633 (1,702)
20,000 15,227 4,773
4,050 4,100 (50)
887 887 -
550 320 230
3,500 2,993 507
10,000 10,871 (871)
20,000 18,564 1,436
1,263 371 892
1,250 1,250
61,500
53,333 8,167
EXCESS OF REVENUES OVER
EXPENDITURES 5,835 12,300 6,465
Transfers to Other Fund
Repay Developer Advance
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
See accompanying Notes to Basic Financial Statements.
(10,000)
(10,000)
(4,165)
87,714
(3,489) (3,489)
10,000
(3,489) 6,511
8,811 12,976
92,767 5,053
$ 83,549 $ 101,578 $ 18,029
(6)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 1 DEFINITION OF REPORTING ENTITY
Liberty Ranch Metropolitan District (the District), a quasi -municipal corporation located
entirely in Weld County, Colorado, was organized by order and decree of the District Court
for Weld County on December 23, 2005, and is governed pursuant to provisions of the
Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The District
was established to provide for construction and financing for street, safety protection, water,
sanitation, and mosquito control facilities and improvements. The street and safety control
improvements have been dedicated to and are maintained by the Town of Mead. Water and
sanitation improvements have been dedicated to and are maintained by the Longs Peak
Water District and St. Vrain Sanitation District, respectively.
The District follows the Governmental Accounting Standards Board (GASB) accounting
pronouncements, which provide guidance for determining which governmental activities,
organizations, and functions should be included within the financial reporting entity. GASB
pronouncements set forth the financial accountability of a governmental organization's
elected governing body as the basic criterion for including a possible component
governmental organization in a primary government's legal entity. Financial accountability
includes, but is not limited to, appointment of a voting majority of the organization's
governing body, ability to impose its will on the organization, a potential for the organization
to provide specific financial benefits or burdens, and fiscal dependency.
The District has no employees, and all operations and administrative functions are
contracted.
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 follows:
Government -Wide and Fund Financial Statements
The government -wide financial statements include the statement of net position and the
statement of activities. These financial statements include all of the activities of the District.
The effect of interfund activity has been removed from these statements. Governmental
activities are normally supported by property taxes.
The statement of net position reports all financial and capital resources of the District. The
difference between the sum of assets and deferred outflows and the sum of liabilities and
deferred inflows is reported as net position.
17)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Government -Wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct and indirect
expenses of a given function or segment are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or segment. Program revenues
include: 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Expenditures for property, plant, and equipment are shown as increases in assets
and redemption of bonds and notes are recorded as a reduction in liabilities.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the government considers revenues to
be available if they are collected within 60 days of the end of the current fiscal period. The
major sources of revenue susceptible to accrual are property taxes and specific ownership
taxes. All other revenue items are considered to be measurable and available only when
cash is received by the District. The District determined that Developer advances are not
considered as revenue susceptible to accrual. Expenditures, other than interest on long-
term obligations, are recorded when the liability is incurred or the long-term obligation is
due.
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the general govemment, except those required to be accounted for in
another fund.
The Debt Service Fund accounts for the resources accumulated and payments made for
principal and interest on long-term debt of the governmental funds.
The Capital Projects Fund is used to account for financial resources to be used for the
acquisition and construction of capital equipment and facilities.
(8)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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. The budget includes each fund on its basis of
accounting unless otherwise indicated.
The District amended its annual budget for the year ended December 31, 2021.
Pooled Cash and Investments
The District follows the practice of pooling cash and investments of all funds to maximize
investment earnings. Except when required by trust or other agreements, all cash is
deposited to and disbursed from a single bank account. Cash in excess of immediate
operating requirements is pooled for deposit and investment flexibility. Investment earnings
are allocated periodically to the participating funds based upon each fund's average equity
balance in the total cash.
Property Taxes
Property taxes are levied by the District's Board of Directors. The levy is based on assessed
valuations determined by the County Assessor generally as of January 1 of each year. The
levy is normally set by December 15 by certification to the County Commissioners to put the
tax lien on the individual properties as of January 1 of the following year. The County
Treasurer collects the determined taxes during the ensuing calendar year. The taxes are
payable by April or if in equal installments, at the taxpayer's election, in February and June.
Delinquent taxpayers are notified in August and generally sales of the tax liens on
delinquent properties are held in November or December. The County Treasurer remits the
taxes collected monthly to the District.
Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred inflow
of resources in the year they are levied and measurable. The unearned property tax
revenues are recorded as revenue in the year they are available or collected.
Facility Fees
On July 26, 2006, the Board of Directors of the District adopted resolutions imposing certain
Facilities Fees upon the property in the District. Pursuant to the Resolutions, the District
imposes a Residential Facilities Fee in the amount of $2,000 per unit for each single-family
detached or attached residential unit, and a Commercial Facilities Fee per building in the
amount of $0.50 per square foot of commercial space within the District, both payable upon
the issuance of a building permit for the subject property. Any unpaid Facilities Fees
constitute a statutory and perpetual lien upon the property until paid.
On December 6, 2010, the District recorded a release of lien by reason of payment in full of
the Residential Facilities Fees.
(9)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Facility Fees (Continued)
On February 4, 2022, the District recorded Resolutions Regarding Termination of Imposition
of Residential and Commercial Facilities Fees in the real property records of Weld County at
reception Nos. 4800099 and 480098, respectively.
Deferred Inflow/Outflow of Resources
In addition to assets, the statement of net position reports a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period and so
will not be recognized as an outflow of resources (expenditure) until that time. The District
has one item that qualifies for reporting in this category. Accordingly, the item, cost of
refunding, is deferred and recognized as an outflow of resources in the period that the
amount is incurred.
In the government -wide financial statements the deferred cost of bond refunding is being
amortized using the interest method over the life of the bonds. The amortization amount is a
component of interest expense and the unamortized deferred cost is reflected as a deferred
outflow of resources.
In addition to liabilities, the statement of net position reports a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will
not be recognized as an inflow of resources (revenue) until that time. The District has one
item that qualifies for reporting in this category. Accordingly, the item, deferred property tax
revenue, is deferred and recognized as an inflow of resources in the period that the amount
becomes available.
Equity
Net Position
For government -wide presentation purposes when both restricted and unrestricted
resources are available for use, it is the District's practice to use restricted resources first,
then unrestricted resources as they are needed.
Fund Balance
Fund balance for governmental funds should be reported in classifications that comprise a
hierarchy based on the extent to which the government is bound to honor constraints on the
specific purposes for which spending can occur. Governmental funds report up to five
classifications of fund balance: nonspendable, restricted, committed, assigned, and
unassigned. Because circumstances differ among governments, not every government or
every governmental fund will present all of these components. The following classifications
describe the relative strength of the spending constraints:
Nonspendable Fund Balance — The portion of fund balance that cannot be spent
because it is either not in spendable form (such as prepaid amounts or inventory) or
legally or contractually required to be maintained intact.
Restricted Fund Balance — The portion of fund balance that is constrained to being used
for a specific purpose by external parties (such as bondholders), constitutional
provisions, or enabling legislation.
(10)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Equity (Continued)
Fund Balance (Continued)
Committed Fund Balance — The portion of fund balance that can only be used for
specific purposes pursuant to constraints imposed by formal action of the government's
highest level of decision -making authority, the Board of Directors. The constraint may be
removed or changed only through formal action of the Board of Directors.
Assigned Fund Balance — The portion of fund balance that is constrained by the
government's intent to be used for specific purposes, but is neither restricted nor
committed. Intent is expressed by the Board of Directors to be used for a specific
purpose. Constraints imposed on the use of assigned amounts are more easily removed
or modified than those imposed on amounts that are classified as committed.
Unassigned Fund Balance — The residual portion of fund balance that does not meet any
of the criteria described above.
If more than one classification of fund balance is available for use when an expenditure is
incurred, it is the District's practice to use the most restrictive classification first.
The transfer from the General Fund to Debt Service Fund was the related to the payment of
bond issuance costs.
NOTE 3 CASH AND INVESTMENTS
Cash and investments as of December 31, 2021, are classified in the accompanying
financial statements as follows:
Statement of Net Position:
Cash and Investments
Cash and Investments - Restricted
Total
$ 99,339
31,986
$ 131,325
Cash and investments as of December 31, 2021, consist of the following:
Deposits with Financial Institutions
Investments
Total Cash and Investments
$ 22,678
108,647
$ 131,325
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Cash Deposits
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local
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. PDPA allows the institution to create a
single collateral pool for all public funds. The pool for all the uninsured public deposits as a
group is to be maintained by another institution or held in trust. The market value of the
collateral must be at least 102% of the aggregate uninsured deposits.
The State Commissioners 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, 2021, the District's cash deposits had a bank balance of $38,201 and a
carrying balance of $22,678.
Investments
The District's formal investment policy is to follow state statutes regarding investments.
The District generally limits its concentration of investments to those noted with an asterisk
(*) below, which are believed to have minimal credit risk, minimal interest rate risk, and no
foreign currency risk. Additionally, the District is not subject to concentration risk or
investment custodial risk disclosure requirements for investments that are in the possession
of another party.
Colorado revised statutes limit investment maturities to five years or less unless formally
approved by the Board of Directors. Such actions are generally associated with a debt
service reserve or sinking fund requirements.
Colorado statutes specify investment instruments meeting defined rating and risk criteria in
which local governments may invest which include:
Obligations of the United States, certain U.S. government agency securities, and
securities of the World Bank
General obligation and revenue bonds of U.S. local government entities
Certain certificates of participation
Certain securities lending agreements
Bankers' acceptances of certain banks
Commercial paper
Written repurchase agreements and certain reverse repurchase agreements
collateralized by certain authorized securities
Certain money market funds
Guaranteed investment contracts
Local government investment pools
(12)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments (Continued)
As of December 31, 2021, the District had the following investments:
Investment
Maturity Amount
Colorado Surplus Asset Fund Trust Weighted Average
(CSAFE)
Under 60 Days _$ 108,647
CSAFE
The District invested in the Colorado Surplus Asset Fund Trust (CSAFE) (the Trust), which
is an investment vehicle established by state statute for local government entities to pool
surplus assets. The State Securities Commissioner administers and enforces all state
statutes governing the Trust. The Trust is similar to a money market fund, with each share
valued at $1.00. CSAFE may invest in U.S. Treasury securities, repurchase agreements
collateralized by U.S. Treasury securities, certain money market funds, and highest rated
commercial paper. A designated custodial bank serves as custodian for CSAFE's portfolio
pursuant to a custodian agreement. The custodian acts as safekeeping agent for CSAFE's
investment portfolio and provides services as the depository in connection with direct
investments and withdrawals. The custodian's internal records segregate investments
owned by CSAFE. CSAFE is rated AAAm by Standard & Poor's. CSAFE records its
investments at amortized cost and the District records its investments in CSAFE at net asset
value as determined by amortized cost. There are no unfunded commitments, the
redemption frequency is daily, and there is no redemption notice period.
NOTE 4 LONG-TERM OBLIGATIONS
The following is a summary of long-term obligations as of December 31, 2021:
Balance at Balance at Due
December 31, December 31, Within
2020 Additions Reductions 2021 One Year
Governmental Activities:
Bonds Payable:
G.O. Refunding and
Improvement 2021A
Bonds $ - $ 13,180,000 $ - $ 13,180,000 $
G.O. Refunding and
Improvement 2017A
Bonds 5,090,000 5,090,000
G.O. Subordinate Limited
Tax 2017B Bonds 2,204,000 2,204,000
Total Bonds Payable 7,294,000 7,294,000 13,180,000
(13)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 4 LONG-TERM OBLIGATIONS (CONTINUED)
The following is a summary of long-term obligations as of December 31, 2021(continued):
Balance at
December 31,
2020
Additions Reductions
Balance at Due
December31, Within
2021 One Year
Governmental Activities:
Bonds/Notes from Direct
Borrowings/Direct
Placements:
Junior Subordinate Cash
Flow 2017C Bonds $ 3,485,000 $ - $ 3,485,000 $
Accrued and Unpaid
Interest - Cash Flow
2017C Bonds 1,230,570 467,262 1,697,832
Developer Advance 215,642 - - 215,642
Developer Advance
Interest 109,492 17,251 126,743
Total Bonds/Notes
from Direct
Borrowings/Direct
Placements 5,040,704 484,513 5,182,832 342,385
Total Long -Term
Obligations $ 12,334,704 $ 484,513 $ 12,476,832 $ 13,522,385 $
$5,225,000 General Obligation Refunding and Improvement Bonds, Series 2017A,
$2,517,000 Subordinate Limited Tax General Obligation Improvement Bonds, Series
2017B and $3,485,000 Junior Subordinate Cash Flow Bonds, Series 2017C
On February 22, 2017, the District issued its $5,225,000 General Obligation Refunding and
Improvement Bonds, Series 2017A (2017A Bonds), its $2,517,000 Subordinate Limited Tax
General Obligation Improvement Bonds, Series 2017B (2017B Bonds) and its $3,485,000
Junior Subordinate Cash Flow Bonds (2017C Bonds, and collectively with the 2017A Bonds
and 2017B Bonds, the 2017 Bonds). The proceeds from the sale of the 2017A Bonds were
used to refund the District's 2006 General Obligation Bonds, reimburse Developer advances
related to public improvements for the District, and to pay the costs of issuing the 2017
Bonds. The proceeds from the sale of the 2017B Bonds were applied to reimburse
Developer advances related to public improvements for the District and to pay certain costs
of issuing the 2017B Bonds. The proceeds from the sale of the 2017C Bonds were used to
reimburse Developer advances related to public improvements for the District and to pay
certain costs of issuing the 2017C Bonds.
The 2017 A -C Bonds were paid off on November 30, 2021 with the issuance of the Series
2021A Bonds described below.
(14)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 4 LONG-TERM OBLIGATIONS (CONTINUED)
$13,180,000 Limited Tax General Obligation Refunding Bonds,_Series 2021A.,
On November 30, 2021, the District issued its $13,180,000 Limited Tax General Obligation
Refunding Bonds, Series 2021A(3) (2021A Bonds). The 2021A Bonds were issued for the
purposes of (i) paying and discharging the 2017 Bonds and (ii) paying the costs of issuance
of the 2021A Bonds. The 2021A Bonds bear interest at the rate of 5.25% per annum
payable annually on each December 1, beginning on December 1, 2022, but only from and
to the extent of available Pledge Revenue, and mature on December 1, 2051 (Maturity
Date), subject to mandatory redemption and optional redemption.
The 2021A Bonds are structured as limited tax "cash flow" general obligations of the District,
secured by and payable solely from the Pledged Revenue (defined below). As cash flow
bonds the interest on the 2021A Bonds is payable on each Interest Payment Date to the
extent any Pledged Revenue is available. There are no scheduled payments of principal on
the 2021A Bonds prior to their Maturity Date, but rather the 2021A Bonds are subject to
mandatory redemption, commencing December 1, 2022, to the extent of moneys on deposit,
if any, in the Mandatory Redemption Account of the Bond Fund as provided in the Indenture.
Any principal of a Bond that is not paid when due will remain outstanding until paid and any
interest on a Bond that is not paid when due will compound annually on each December 1 at
the interest rate then borne by such Bond. If any amount of principal or interest due on the
2021A Bonds remains unpaid after the application of all Pledged Revenue available on
December 1, 2061, such unpaid amount will be deemed discharged.
Optional Redemption
The 2021A Bonds are subject to redemption prior to maturity, at the option of the District, on
December 1, 2026, and on any date thereafter, upon payment of par, accrued interest, and
a redemption premium equal to a percentage of the principal amount so redeemed as
follows:
Date of Redemption Redemption Premium
December 1, 2026, to November 30, 2027
December 1, 2027, to November 30, 2028
December 1, 2028, to November 30, 2029
December 1, 2029, and thereafter
3.00%
2.00
1.00
0.00
Pledged Revenue
The 2021A Bonds are payable solely from and to the extent of the Pledged Revenue,
consisting generally of the moneys derived from the following sources, net of any costs of
collection:
(a) all District Property Tax Revenues;
(b) the District portion of the Specific Ownership Tax which is collected as a result of
imposition of the Required Mill Levy;
(c) revenues received from the MURA Cooperation Agreement (see Note 7); and
(d) any other legally available moneys which the District determines, in its absolute
discretion, to transfer to the Trustee for application as Pledged Revenue.
(15)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 4 LONG-TERM OBLIGATIONS (CONTINUED)
Property Tax Revenues
"Property Tax Revenues" means the ad valorem property taxes derived from the District's
imposition of the Required Mill Levy, net of the costs of collection of the County and any tax
refunds or abatements authorized by or on behalf of the County.
Required Mill Levy
The Indenture provides a Required Mill Levy be imposed in an amount sufficient to pay the
principal of and interest on the 2021A Bonds each year, but not in excess of 50 mills
(subject to adjustment for changes in the method of calculating assessed valuation on or
after April 11, 2005).
The annual debt service requirements of the 2021A Bonds are not currently determinable
since they are payable only from available Pledged Revenue.
Debt Service Requirements
The District's long-term obligations regarding the Series 2021A Bonds will mature as follows:
Year Ending December 31, Principal Interest Total
2022 $ - $ 693,872 $ 693,872
2023 691,950 691,950
2024 691,950 691,950
2025 691,950 691,950
2026 691,950 691,950
2027-2031 - 3,459,750 3,459,750
2032-2036 1,490,000 3,366,510 4,856,510
2037-2041 3,193,000 2,764,388 5,957,388
2042-2046 4,965,000 1,751,820 6,716,820
2047-2049 3,532,000 354,952 3,886,952
Total $ 13,180,000 $ 15,159,092 $ 28,339,092
Authorized Debt
On November 1, 2005, a majority of the qualified electors of the District authorized the
issuance of indebtedness in an amount not to exceed $108,800,000 at an interest rate not to
exceed 18% per annum. At December 31, 2021, the District had the following remaining
authorized but unissued indebtedness:
Streets
Water Facilities
Sanitation Facilities
Mosquito Control
Safety Protection
Operations and Maintenance
Debt Refunding
Intergovernmental Agreement
Total
Authorized
November 1, 2006 2017A -C 2021A Remaining at
2005 Authorization Authorization Authorization December 31,
Election Used Used Used 2021
$ 9,900,000 $ 1,950,000 $ 3,156,218 $ - $ 4,793,782
14,800,000 2,175,000 1,950,538 10,674,462
10,300,000 810,000 1,866,465 7,623,535
100,000 100,000
1,000,000 1,000,000
500,000 500,000
36,100, 000 4,253,779 13,180, 000 16,666,221
36,100, 000 36,100, 000
$ 108,800,000 $ 4,935,000 $ 11,227,000 $ 13,180,000 $ 79,458,000
(16)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 4 LONG-TERM OBLIGATIONS (CONTINUED)
Authorized Debt (Continued)
Pursuant to the District's Service Plan, the District is limited to issuing a total of $18,500,000
in bonds. The District is also limited to a maximum debt service mill levy of 50 mills, as
adjusted for changes in the ratio of actual value to assessed value of property within the
District, pursuant to the Service Plan. In 2019, the residential assessment rate changed from
7.20% to 7.15%; therefore, the maximum mill levy for debt service is 54.642 mills as of
December 31, 2021. In December 2021, the District certified an adjusted debt service mill
levy of 54.844 mills for collection in budget year 2022.
In the future, the District may issue a portion or all of the remaining authorized but unissued
debt for purposes of providing public improvements to support development as it occurs
within the District's service area.
Developer Advances
Facilities Acquisition Agreement(s)
The District entered into a Facilities Acquisition Agreement on March 1, 2006, with Centex
Homes (Centex) whereby Centex will design, construct, complete, and convey to the
District, and the District will accept, certain public infrastructure improvements benefiting the
development within the District. The District agrees to make payment to Centex for costs of
the improvements, including but not limited to, all costs of design, testing, engineering,
acquisition, construction, related consultant fees, and construction management up to a
maximum amount of $18,500,000, together with interest thereon, at an annual rate of 8%.
The Facilities Acquisition Agreement was amended on November 29, 2006, to decrease the
maximum amount to be advanced by Centex to $9,000,000. Repayment of the advances is
subject to annual appropriation by the District's Board of Directors.
On December 1, 2010, the District terminated its Facilities Acquisition Agreement with
Centex and entered into a Facilities Funding and Acquisition Agreement with LR
Investments, LLC (LR), subject to the closing of the sale of property within the District's
boundaries from Centex to LR. Previous advances made by Centex and the accrued
interest on those advances were transferred to LR through the simultaneous execution of
the Termination of Facilities Acquisition Agreement with Centex and the Facilities Funding
and Acquisition Agreement with LR. During 2017, the District repaid the outstanding
principal and interest balance and had no outstanding obligations as of December 31, 2021.
On October 28, 2021, the District and LR entered into a Termination of Facilities Funding
and Acquisition Agreement.
(17)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 4 LONG-TERM OBLIGATIONS (CONTINUED)
Developer Advances (continued)
Facilities Acquisition Agreement(s) (continued)
On July 8, 2014, the District entered into a Facilities Acquisition Agreement with Lorson
South Land Corporation (LSLC) whereby the LSLC will design, construct, complete, and
convey to the District, and the District will accept, certain public infrastructure improvements
benefitting the development within the District. The District agrees to make payment to LSLC
for costs of the improvements, including but not limited to, all costs of design, testing,
engineering, acquisition, construction, related consultant fees, and construction
management, together with interest thereon, at an annual rate of 8%. Repayment of the
advances is subject to annual appropriation by the District's Board of Directors. During
2014, the District accepted $2,879,630 in improvements. During 2017, the district repaid the
outstanding principal and interest due and had no outstanding obligation at December 31,
2021. On October 28, 2021, the District and LSLC entered into a Termination of Facilities
Funding and Acquisition Agreement.
On October 28, 2021, the District entered into a Facilities Acquisition Agreement with LR
whereby LR will construct or cause the construction of certain Improvements (defined
therein) to be conveyed to the District and the District will accept the Improvements
benefitting the development within the District (2021 FAA). The District agrees to make
payment to the Developer for costs of the Improvements, including but not limited to, all
costs of design, testing, engineering, acquisition, construction, related consultant fees, and
construction management (Construction Costs). LR and the District agree that a condition to
the District's acquisition of the Improvements and obligation to reimburse LR for the
Construction Costs is the District's receipt of a written certification of an independent
engineer stating the Construction Costs are reasonable and comparable to the costs of
similar public improvements constructed in the Town and in the greater Weld County area
(Certified Construction Costs). The District agrees to reimburse LR for Certified Construction
Costs up to a maximum amount of $1,500,000 together with interest thereon, at an annual
rate of 8%. Repayment of the advances is subject to annual appropriation by the District's
Board of Directors. During 2021, the District accepted no Improvements. As of December
31, 2021, there were no outstanding advances under the 2021 FAA.
Operations Funding Agreements
On March 1, 2006, the District and Centex entered into an Operations Funding Agreement
(2006 OFA) in which Centex agreed to advance amounts to a maximum stated amount to
fund operations and maintenance expenditures of the District in the event District revenues
are not sufficient. The District agreed to repay Centex for such advances plus accrued
interest at the rate of 8%. Additionally, the District entered into Operation Funding
Agreements (hereinafter referred to as 2007 OFA, 2008 OFA, 2009 OFA, and 2010 OFA
and, collectively with the 2006 OFA, the 2006-2010 OFAs) with similar terms and provisions
for 2007, 2008, 2009, and 2010.
(18)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 4 LONG-TERM OBLIGATIONS (CONTINUED)
Developer Advances (continued)
Operations Funding Agreements (continued)
On December 1, 2010, the District terminated the 2006-2010 OFAs with Centex and entered
into a 2010-2011 Operation Funding Agreement (2010-2011 OFA) with LR. Pursuant to the
2010-2011 OFA, LR agrees to advance up to $30,000 for operations and maintenance for
the period beginning December 1, 2010 through December 31, 2011. Previous advances
made by Centex and the accrued interest on those advances have been transferred to LR
through the simultaneous execution of the Termination of 2006-2010 OFAs with Centex and
the 2010-2011 OFA with LR.
On November 2, 2011, the District entered into a 2012 Operation Funding Agreement with
LR (2012 OFA). Under the 2012 OFA, LR agreed to advance up to $14,000 through
December 31, 2012. No amounts were advanced under the 2012 OFA.
As of December 31, 2021, the outstanding advances under the 2010-2011 OFA totaled
$215,642 and accrued interest totaled $126,743.
NOTE 5 NET POSITION
The District has net position consisting of two components — restricted and unrestricted.
Restricted assets include net position that are restricted for use either externally imposed
by creditors, grantors, contributors, or laws and regulations of other governments or
imposed by law through constitutional provisions or enabling legislation. The District
had restricted net position as of December 31, 2021, as follows:
Restricted Net Position:
TABOR Emergency Reserve
Total Restricted Net Position
$ 2,000
$ 2,000
The District has a deficit in unrestricted net position. The deficit was a result of the District
being responsible for the repayment of bonds issued for the refunding of the District's debt
NOTE 6 RELATED PARTY
Certain owners of the majority of the undeveloped property within the District are LR and
LSLC. Certain members of the Board of Directors are associated with LR and/or LSLC,
and/or may have conflicts of interest in dealing with the District.
(19)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 7 AGREEMENTS
St. Vrain Intergovernmental Agreement
The District and the St. Vrain Sanitation District (SVSD) entered into an Intergovernmental
Agreement (the St. Vrain IGA) on February 15, 2006, pursuant to which SVSD consented to
the formation of the District and authority of the District to construct and finance certain
on -site sanitary sewer system improvements as necessary within the development. Upon
completion and acceptance of the sewer improvements by SVSD, the District dedicated and
conveyed such sewer improvements to SVSD, at which time SVSD was assigned the
responsibility for the operation and maintenance of the sewer improvements.
The District agrees to request a meeting of SVSD to discuss and implement steps to
dissolve the District when all of the financial obligations issued by the District have been
repaid or when adequate provisions for payment in full have been made and there are not
further operational requirements for District improvements which the District is responsible
for.
Longs Peak Intergovernmental Agreement
The District and Longs Peak Water District (LPWD) entered into an Intergovernmental
Agreement (the Longs Peak IGA) on April 20, 2006, pursuant to which LPWD consented to
the formation of the District and authority of the District to construct and finance certain
limited water system improvements as may be necessary within the Development. Upon
completion and acceptance of the water improvements by LPWD, the District dedicated and
conveyed such water improvements to LPWD, at which time LPWD assumed the
responsibility for the operation and maintenance of the water improvements.
The District is required to obtain the consent of LPWD prior to including any property into the
boundaries of the District or amending its Service Plan. In addition, the District also agrees
to notify LPWD to request a meeting to discuss and implement steps to dissolve the District
when all of the financial obligations issued by the District have been repaid or when
adequate provisions for payment have been made and there are no further operational
requirements for District improvements for which the District is responsible.
Mead Urban Renewal Authority Cooperation Agreement
The District entered into a Cooperation Agreement on January 30, 2017, with the town of
Mead, Colorado, and the Mead Urban Renewal Authority (MURA). Under the terms of the
agreement, MURA agrees to deposit all of the increase in property tax revenues allocated to
MURA as a result of the levy of the District upon taxable property within the Urban Renewal
Area. MURA then agrees to remit those funds to the District. The District received $23,948
from MURA under the agreement for year ended December 31, 2021.
NOTE 8 RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; thefts of, damage to, or
destruction of assets; errors or omissions; injuries to employees; or acts of God.
(20)
LIBERTY RANCH METROPOLITAN DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 8 RISK MANAGEMENT (CONTINUED)
The District is a member of the Colorado Special Districts Property and Liability Pool (the
Pool). The Pool is an organization created by intergovernmental agreement to provide
property, liability, public officials' liability, boiler and machinery, and workers' compensation
coverage to its members. Settled claims have not exceeded this coverage in any of the past
three fiscal years.
The District pays annual premiums to the Pool for liability, property, public officials' liability,
and workers' compensation coverage. In the event aggregated losses incurred by the Pool
exceed amounts recoverable from reinsurance contracts and funds accumulated by the
Pool, the Pool may require additional contributions from the Pool members. Any excess
funds which the Pool determines are not needed for purposes of the Pool may be returned
to the members pursuant to a distribution formula.
NOTE 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. These reserves must
be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments
are not allowed to use the Emergency Reserves to compensate for economic conditions,
revenue shortfalls, or salary or benefit increases.
On November 1, 2005, District voters passed an election question to increase property
taxes $500,000 annually, without limitation of rate, to pay the District's operational and
maintenance costs. The voters also authorized the District to retain and spend all revenue
from sources other than property taxes without regard to any limitations under TABOR.
The District's management believes it is in compliance with the provisions of TABOR.
However, TABOR is complex and subject to interpretation. Many of the provisions, including
the interpretation of how to calculate Fiscal Year Spending limits will require judicial
interpretation.
(21)
LIBERTY RANCH METROPOLITAN DISTRICT
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2021
Variance with
Final Budget
Budget Actual Positive
Original Final Amounts (Negative)
REVENUES
Property Taxes
Property Tax - URA
Specific Ownership Tax
Interest Income
Total Revenues
EXPENDITURES
County Treasurers Fee
Paying Agent Fees
Bond Interest - Series 2017A
Bond Interest - Series 2017B
Bond interest - Series 2017C
Bond Principal - Series 2017A
Bond Principal - Series 20170
Bond principal - Series 2017C
Bond issue costs
Contingency
Total Expenditures
EXCESS OF REVENUES UNDER
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bond Issuance
Transfers from Other Funds
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of year
FUND BALANCE - END OF YEAR
$ 369,730 $ 369,730 $ 369,478 $ (252)
20,645 20,645 20,645 -
19,519 19,519 19,601 82
1,576 1,576 235 (1,341)
411,470 411,470 409,959 (1,511)
5,546 5,546 5,545
5,500 5,500 5,500
254,500 405,250 405,250
76,000 285,909 285,909
1,697,832 1,697,832
65,000 5,090,000 5,090,000
2,204,000 2,204,000
3,485,000 3,485,000
605,270 600,631
8,504 715,693
415,050 14,500,000 13,779,667 720,333
4,639
715,693
(3,580) (14,088,530) (13,369,708) (721,844)
14, 500, 000 13,180, 000 (1,320,000)
3,533 3,533 -
14,503,533 13,183,533 (1,320,000)
(3,580) 415,003 (186,175) (601,178)
208,330 208,330 206,321 (2,009)
$ 204,750 $ 623,333 $ 20,146 $ (603,187)
(23)
LIBERTY RANCH METROPOLITAN DISTRICT
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2021
Variance with
Final Budget
Budget Actual Positive
Original Final Amounts (Negative)
REVENUES
Total Revenues
EXPENDITURES
Total Expenditures
EXCESS OF REVENUES OVER
EXPENDITURES
$ $
OTHER FINANCING SOURCES (USES)
Transfer to Other Fund (44) (44)
Total Other Financing Uses (44) (44)
NET CHANGE IN FUND BALANCE (44) (44)
Fund Balance - Beginning of Year 44 44
FUND BALANCE - END OF YEAR $ $ $ $
(24)
OTHER INFORMATION
(25)
LIBERTY RANCH METROPOLITAN DISTRICT
SUMMARY OF ASSESSED VALUATION, MILL LEVY, AND PROPERTY TAXES COLLECTED
DECEMBER 31, 2021
Prior Year
Assessed
Valuation for Mills Levied for Total Property Taxes
Current Year Refunds Percent
Year Ended Property Debt and Collected to
December 31, Tax Levy General Service Abatements Levied Collected Levied
2017 $ 11,134,732 8.000 50.000 0.000 $ 645,815 $ 645,881 100.01 %
2018 9,241,217 8.000 55.277 0.000 584,757 585,645 100.15
2019 8,954,995 8.000 55.277 0.000 566,645 487,293 86.00 (1)
2020 7,124,732 8.690 55.571 0.000 457,842 457,841 100.00
2021 6,766,410 8.743 55.571 0.000 428,889 428,597 99.93
Estimated for
Calendar
Year Ending
December 31,
2022 $ 7,200,852 8.775 54.642 0.000 $ 456,656
(I) Collections in 2019 are net of an abatement of $125,465 in the District.
NOTE: Property taxes collected in any one year include collection of delinquent property taxes assessed in prior
years, as well as reductions for property tax refunds or abatements. Information received from County Treasurer
does not permit identification of specific year of assessment.
(26)
From:
To:
Cc:
Subject:
Date:
Attachments:
Amin. Pinal
CTB-weld-districts
Bartow, Carrie; Wojnarowski, John
Liberty Ranch Metropolitan District: 2021 Audited Financial Statements
Friday, September 30, 2022 5:21:23 PM
LRMD Final FS Report 2021.pdf
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.
Dear Board:
Pursuant to House Bill 08-1125, attached is a copy of the Audit Report for the year ended December
31, 2021, for the following Special District in Weld County:
LIBERTY RANCH METROPOLITAN DISTRICT
Please let me know if you have any questions.
Thank you,
PINALAMIN
Service Processing Coordinator (SPC)
Service and Industry Resource Team (SIRT)
Direct 303-439-6002
CLA (CliftonLarsonAllen LLP)
pinal.aminPclaconnect.com
We'll get you there.
CPAs I Consultants I Wealth Advisors
Send me your files with secure file transfer.
.111
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