Supplement to 2022 Annual Report
0466.0024; 1339529
SUPPLEMENT TO 2022 CONSOLIDATED ANNUAL REPORT ON THE SERVICE PLAN
AVON STATION METROPOLITAN DISTRICT AND
CONFLUENCE METROPOLITAN DISTRICT
Reporting Period: January 1, 2022 – December 31, 2022
Pursuant to Section 32-1-207(3)(c), Colorado Revised Statutes, Avon Station Metropolitan District
and Confluence Metropolitan District (the “Districts”) provide the following supplemental information
to the 2022 Consolidated Annual Report on the Service Plan for the year ended December 31, 2022:
A copy of the audited financial statements, if required by the “Colorado Local Government
Audit Law”, part 6 of article 1 of title 29, or the application for exemption from audit, as
applicable:
The annual Audit Reports for the fiscal year ending December 31, 2022 (“2022 Audits”) are attached
hereto as Exhibits A-1 and A-2.
EXHIBIT A-1
2022 Audit
Avon Station Metropolitan District
AVON STATION METROPOLITAN DISTRICT
FINANCIAL STATEMENTS AND REPORT OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
December 31, 2022
TABLE OF CONTENTS
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position 7
Statement of Activities 8
Fund Financial Statements
Balance Sheet – Governmental Funds 9
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 10
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 11
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balance – Governmental Funds – to the Statement of Activities 12
Notes to the Financial Statements 13
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund 24
Notes to Required Supplementary Information 25
Other Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – Debt Service Fund 26
Summary of Assessed Valuation, Mill Levy, and Property Tax Collections 27
2499 Hwy. 6&50 www.csdcpa.com 970-245-3000
Grand Junction, CO 81505 e-mail info @ csdcpa.com FAX 970-242-4716
TOLL FREE 877-245-8080
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors and Management
Avon Station Metropolitan District
c/o Marchetti & Weaver LLC
28 Second Street, Suite 21300
Edwards, CO 81632
Opinions
We have audited the accompanying financial statements of the governmental activities, and each
major fund of Avon Station Metropolitan District, (the District) as of and for the year ended
December 31, 2022, 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 financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, and each major fund of Avon Station
Metropolitan District, as of December 31, 2022, and the respective changes in financial position
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. 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, 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 for 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 generally
accepted auditing standards 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
Avon Station Metropolitan District
Page Two
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 generally accepted auditing standards, 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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information be presented to
supplement the basic financial statements. Such information is the responsibility of management
and, 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.
We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
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 budgetary comparison schedule
for the debt service funds is presented for purposes of additional analysis and is not a required part
of the basic financial statements. Such information is the responsibility of management and was
Avon Station Metropolitan District
Page Three
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, the budgetary schedule for the debt service fund is fairly stated,
in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the summary of assessed valuation, mill levy, and property tax collection
but does not include the basic financial statements and our auditor’s report thereon. Our opinions
on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
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.
Chadwick, Steinkirchner, Davis & Co., P.C.
June 27, 2023
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Avon Station Metropolitan District
Management’s Discussion and Analysis
December 31, 2022
As management of Avon Station Metropolitan District (the “District”), we offer readers of the District’s
financial statements this narrative overview and analysis of the financial activities of the District for the
fiscal year ended December 31, 2022
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements. The District’s basic financial statements comprise three components: 1) government-wide
financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report
also contains supplementary information presented after the notes to the financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all of the District’s assets, deferred outflows,
liabilities, and deferred inflows with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the District is
improving or deteriorating.
The Statement of Activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods.
The governmental activity of the District is primarily financing construction, operation, and maintenance of
the basic public infrastructure that is performed by Confluence Metropolitan District. There are no
business-type activities within the District.
The government-wide financial statements can be found on pages 7 and 8 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The District, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The District currently has two funds, the General Fund and the Debt Service Fund,
both of which are governmental funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of expendable resources, as well as on balances of expendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
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Overview of the Financial Statements (continued)
Notes to the Financial Statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The Notes to
the Financial Statements can be found on pages 13 through 23 of this report.
Government-wide Financial Analysis. A condensed comparative summary of the District’s
government-wide assets, liabilities, deferred inflows, net position, revenues and expenditures follows:
The District is the “financing district” in a dual district structure whereby the District is financing the
majority of the cost of constructing, operating and maintaining the infrastructure built and operated by
Confluence Metropolitan District (CMD). This infrastructure is constructed to benefit the constituents of
Avon Station Metropolitan District (ASMD) and CMD. The District entered into a District Facilities Joint
Financing,Construction and Service Agreement with CMD which has subsequently been amended.
Pursuant to this agreement, as amended, CMD is obligated to construct and provide the initial financing
for the primary infrastructure for the ASMD area. ASMD will ultimately pay a “capital obligation” to
2022 2021
Assets:
Current and other assets 1,393,618$ 1,379,123$
Long-term assets - -
Total Assets 1,393,618 1,379,123
Liabilities and Deferred Inflows:
Current, other liabilities and Deferred Inflows 1,202,573 1,218,092
Long-term obligations payable 24,251,835 24,198,562
Total Liabilities and Deferred Inflows 25,454,408 25,416,654
Net Assets:
Restricted 280 284
Unrestricted (24,061,070) (24,037,815)
Total Net Assets (24,060,790)$ (24,037,531)$
Revenues:
Operating contributions -$ -$
General revenues:
Property taxes 1,212,475 1,083,422
Other taxes 99,939 87,387
Interest and other revenue 5,896 987
Total Revenues 1,318,310 1,171,796
Expenses:
General government 45,751 42,003
Intergovernmental agreement 1,295,818 (3,231,290)
Total Expenses 1,341,569 (3,189,287)
Change in Net Position (23,259) 4,361,083
Net Position - Beginning (24,037,531) (28,398,614)
Net Position - Ending (24,060,790)$ (24,037,531)$
Governmental Activities
Avon Station Metropolitan District
Avon Station Metropolitan District's
Change in Net Position
Statement of Net Position
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reimburse CMD for the costs to construct the infrastructure. ASMD will also pay a “service obligation” to
reimburse CMD for the operating costs associated with administering and maintaining the assets.
Government-wide Financial Analysis (continued)
The majority of the District’s assets consist of property taxes receivable, representing those taxes levied
in 2022 that will be collected in 2023. The District has an obligation to pay Confluence for the cost of
constructing, operating, and maintaining the infrastructure assets and these obligations are reflected as
long-term obligations on the District’s government-wide balance sheet.
The District’s primary revenue sources were property taxes collected. These revenues have been used
to pay the expenses of the District. The majority of the District’s expenses relate to the transfer of
property taxes collected to Confluence Metropolitan District which are used to reduce the capital and
service obligations owed.
Financial Analysis of the District’s Funds
As mentioned earlier, the District uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the District’s governmental funds is to provide information on near-
term inflows, outflows, and balances of expendable resources. Such information is useful in assessing
the District’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the District’s governmental funds reported a combined ending
fund balance of $191,045 which reflects an increase of $30,014 from 2021.
Budget Variances. The District expenditures were similar to budgeted results. Details can be seen on
pages 24 and 26.
Capital assets. As stated above, the infrastructure in the District was constructed and is being
maintained by Confluence Metropolitan District. Any assets constructed with funding from or at the
direction of CMD that are not dedicated to other governmental entities remain with CMD for ownership,
operation and maintenance.
Long-term debts. The District’s remaining capital and service obligation to Confluence for the balance of
the cost of the infrastructure incurred through December 31, 2022 is $24,251,835. Additional information
can be found in the Notes to the Financial Statement on page 21.
Request for Information
This financial report is designed to provide a general overview of the District’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to Marchetti & Weaver LLC, 28
Second Street, Suite 213, Edwards, CO 81632 or you may call (970) 926-6060.
Assets
Current Assets
Cash and cash equivalents 196,774$
Amounts due from Eagle County 7,281
Property taxes receivable 1,187,042
Prepaid expense 2,521
Total Assets 1,393,618
Liabilities
Current liabilities
Accounts paybale 199
Due to Confluence Metropolitan District 15,332
Total Current Liabilities 15,531
Noncurrent Liabilities
Capital and Service Obligations Payable to
Confluence Metropolitan District 24,251,835
Total Noncurrent Liabilities 24,251,835
Total Liabilities 24,267,366
Deferred Inflows of Resources
Property taxes 1,187,042
Net Position
Restricted for emergencies 280
Unrestricted (24,061,070)
Total Net Position (24,060,790)$
The accompanying notes are an integral part of these financial statements.
Avon Station Metropolitan District
STATEMENT OF NET POSITION
December 31, 2022
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Program Charges for Operating Capital Net (Expense)
Expenses Services Contributions Contributions Revenue
Governmental Operations
General government 45,751$ -$ -$ -$ (45,751)$
Intergovernmental agreement 1,295,818 - - - (1,295,818)
Totals 1,341,569$ -$ -$ -$ (1,341,569)
General Revenues
Property taxes 1,212,475
Specific ownership taxes 99,939
Interest income 5,896
Total General Revenues 1,318,310
Change in Net Position (23,259)
Net Position, beginning of year (24,037,531)
Net Position, end of year (24,060,790)$
The accompanying notes are an integral part of these financial statements.
Program Revenue
For the year ended December 31, 2022
STATEMENT OF ACTIVITIES
Avon Station Metropolitan District
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Total
Debt Governmental
General Service Funds
Assets
Equity in pooled cash 153,723$ 43,051$ 196,774$
Amounts due from Eagle County - 7,281 7,281
Property taxes receivable - 1,187,042 1,187,042
Prepaid expense 2,521 - 2,521
Total Assets 156,244$ 1,237,374$ 1,393,618$
Liabilities, Deferred Inflows of Resources, and
Fund Balance
Liabilities
Accounts Payable 199$ -$ 199$
Due to Confluence Metropolitan District - 15,332 15,332
Total Liabilities 199 15,332 15,531
Deferred Inflows of Resources
Property taxes - 1,187,042 1,187,042
Total Deferred Inflows of Resources - 1,187,042 1,187,042
Fund Balances
Nonspendable - prepaid expense 2,521 - 2,521
Restricted for emergencies 280 - 280
Assigned for debt services - 35,000 35,000
Unassigned 153,244 - 153,244
Total fund balances 156,045 35,000 191,045
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 156,244$ 1,237,374$ 1,393,618$
The accompanying notes are an integral part of these financial statements.
Avon Station Metropolitan District
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2022
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Reconciliation to the Statement of Net Position
Total Fund Balances 191,045$
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Long-term liabilities, including capital and service obligations, are not
due and payable in the current period and, therefore, are not reported
in the governmental funds. (24,251,835)
Change in net position of governmental activities (24,060,790)$
The accompanying notes are an integral part of these financial statements.
Avon Station Metropolitan District
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
December 31, 2022
TO THE STATEMENT OF NET POSITION
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Total
Debt Governmental
General Service Funds
Revenue
Property taxes -$ 1,212,475$ 1,212,475$
Specific ownership taxes - 99,939 99,939
Interest income - 5,896 5,896
Total Revenue - 1,318,310 1,318,310
Expenditures
General government
Audit 5,200 - 5,200
Director's fees 1,300 - 1,300
Insurance 2,714 - 2,714
Treasurer's fees - 36,414 36,414
Other 123 - 123
Intergovernmental agreement
Capital obligation payments to
Confluence Metropolitan District - 848,835 848,835
Service obligation payments to
Confluence Metropolitan District - 393,710 393,710
Total expenditures 9,337 1,278,959 1,288,296
Revenues Over (Under) Expenditures (9,337) 39,351 30,014
Other Financing Sources (Uses)
Transfers in 39,351 - 39,351
Transfers out - (39,351) (39,351)
Total Other Financing Sources (Uses) 39,351 (39,351) -
Revenues and Other Financing Sources
(Uses) Over (Under) Expenditures 30,014 - 30,014
Fund Balance, beginning of year 126,031 35,000 161,031
Fund Balance, end of year 156,045$ 35,000$ 191,045$
Avon Station Metropolitan District
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - GOVERNMENTAL FUNDS
For the year ended December 31, 2022
The accompanying notes are an integral part of these financial statements.
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Reconciliation to the Statement of Activities
Total net change in fund balances - governmental funds 30,014$
Amounts reported for governmental activities in the Statement of
Activities are different because:
Some revenues and expenses reported in the Statement of Activities do
not require the use of current financial resources and, therefore, are not
reported in the governmental funds. This amount represents the net
increase in the capital and service obligation owed to Confluence
Metropolitan District for the year. (53,273)
Change in net position of governmental activities (23,259)$
.
Avon Station Metropolitan District
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS - TO THE
For the year ended December 31, 2022
STATEMENT OF ACTIVITIES
The accompanying notes are an integral part of these financial statements.
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Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
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NOTE A – DEFINITION OF REPORTING ENTITY
Avon Station Metropolitan District (ASMD), a quasi-municipal organization, was organized on February
8, 1999, and is governed pursuant to provisions of the Colorado Special District Act. The District’s service
area is located in Eagle County, Colorado. The District was established as part of a dual district structure
with the Confluence Metropolitan District (CMD). The District is considered the financing district and
was established to provide funding and tax base for capital improvements that will benefit the District.
The capital improvements are owned and maintained by Confluence Metropolitan District, the Service
District (see Note F).
The District has no employees and all services are contracted.
The District follows the Governmental Accounting Standards Board (GASB) accounting pronouncements
which provide guidance for determining which governmental activities, organizations and functions should
be included within the financial reporting entity. GASB pronouncements set forth the financial
accountability of a governmental organization’s elected governing body as the basic criterion for including
a possible component governmental organization in a primary government’s legal entity. Financial
accountability includes, but is not limited to, appointment of a voting majority of the organization’s
governing body, ability to impose its will on the organization, a potential for the organization to provide
specific financial benefits or burdens and fiscal dependency.
The District is not financially accountable for any other organization, nor is the District a component unit
of any other primary governmental entity.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies of the District are as follows:
Basis of Presentation
The District’s basic financial statements consist of government-wide statements, including a Statement of
Net Position and a Statement of Activities, and fund financial statements which provide a more detailed
level of financial information.
Government-wide Financial Statements
The Statement of Net Position and the Statement of Activities display information about the District as a
whole. These statements include the financial activities of the primary government.
The Statement of Net Position presents the financial condition of the governmental activities at year-end.
The Statement of Activities presents a comparison between program expenses and the program revenues
for each program or function of the District’s governmental activities. Program expenses are those that are
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
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NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation (continued)
specifically associated with a service, program, or department; and, therefore, clearly identifiable to a
particular function. Program revenues include charges paid by the recipient of the goods or services offered
by the program, grants and contributions that are restricted to meeting the operations or capital
requirements of a particular program, and interest earned on grants that is required to be used to support a
particular program. Revenues which are not classified as program revenues are presented as general
revenues of the District, with certain limited exceptions. The comparison of program expenses with
program revenues identifies the extent to which each governmental function is self-financing or draws
from the general revenues of the District.
Fund Financial Statements
During the year, the District segregates transactions related to certain District functions or activities in
separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial
statements are designed to present financial information of the District at this more detailed level. The
focus of governmental fund financial statements is on major funds.
Fund Accounting
The accounts of the District are organized on the basis of funds, each of which is considered a separate
accounting entity. Fund types used by the District are described below.
Government Fund Types
General Fund – the General Fund is the general operating fund of the District. It is used to account for all
financial resources except those required to be accounted for in another fund.
Debt Service Fund – The Debt Service Fund is used to account for all financial resources for the payment
of long-term obligations due to Confluence Metropolitan District.
Measurement Focus
Government-wide Financial Statements
The government-wide financial statements are prepared using the economic resources measurement focus.
All assets, liabilities, and deferred inflows of resources associated with the operation of the District are
included in the Statement of Net Position.
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
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NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus (continued)
Fund Financial Statements
All governmental funds are accounted for using a flow of current financial resources measurement focus.
With this measurement focus, only current assets and current liabilities are generally included on the
balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances reports on the
sources (revenues and other financing sources) and uses (expenditures and other financing uses) of current
financial resources. This approach differs from the manner in which the governmental activities of the
government-wide financial statements are prepared. Governmental fund financial statements therefore
include a reconciliation with brief explanations to better identify the relationship between the government-
wide statements and the statements for governmental funds.
Basis of Accounting
Basis of accounting determines when transactions are recorded in the financial records and reported on the
financial statements. Government-wide financial statements are prepared using the accrual basis of
accounting. Governmental funds use the modified accrual basis of accounting. Differences in the accrual
and modified accrual basis of accounting arise in the recognition of revenue, the recording of unavailable
revenue, and in the presentation of expenses versus expenditures.
Revenues
Revenue resulting from an exchange transaction, in which each party gives and receives essentially the
same value, is recorded in the fiscal year in which the resources are both measurable and available to
finance expenditures of the fiscal period, typically within sixty days of realization.
Non-exchange transactions, in which the District receives value without directly giving value in return,
include property taxes, grants, entitlements, and donations. Revenue from property taxes is recognized in
the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is
recognized in the fiscal year in which all eligibility requirements have been satisfied. On a modified
accrual basis, revenue from non-exchange transactions must be available before it can be recognized.
Expenses/Expenditures
On the accrual basis of accounting, expenses are recognized at the time they are incurred.
The measurement focus of governmental funds accounting is on decreases in net financial resources
(expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in
which the fund liability is incurred, if measurable. Allocations of cost, such as depreciation and
amortization, are not recognized in the governmental funds.
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
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NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Budgets
In accordance with State Budget Law, the District’s Board of Directors holds a public hearing 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.
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.
Cash Equivalents
The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, investment
pools and short-term investments with an original maturity of three months or less from the date of
acquisition.
Accrued Liabilities and Long-Term Obligations
All payables, accrued liabilities, and long-term obligations are reported in the government-wide financial
statements.
In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely
manner and in full from current financial resources, are reported as obligation of the funds. Long-term
obligations are recognized as a liability on the governmental fund financial statements when due.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report 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(s) and so will not be recognized as
an outflow of resources (expenses/expenditure) until then. The District has no amounts that qualify as
deferred outflows of resources as of December 31, 2022.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
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NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deferred Outflows/Inflows of Resources
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from
property taxes for which there is an enforceable legal claim as of December 31, 2022, but which are levied
to financial year 2023. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available.
Net Position
In the government-wide financial statements, net position represents the difference between assets and
deferred outflows of resources and liabilities and deferred inflows of resources. Net position is reported
as restricted when there are limitations imposed on their use either through the enabling legislation adopted
by the District, or through external restrictions imposed by creditors, grantors, or laws, or regulations of
other governments.
The District applies restricted resources first when an expense is incurred for the purpose for which both
restricted and unrestricted net position are available.
Fund Balances
In the fund financial statements the following classifications describe the relative strength of the spending
constraints:
Non-spendable fund balance – The portion of fund balance that cannot be spent because it is either not in
spendable form (such as prepaid expenses) or it is legally or contractually required to be maintained intact.
Restricted fund balance – The portion of fund balance constrained to being used for a specific purpose by
external parties (such as grantors or bondholders), constitutional provisions or enabling legislation. The
District’s restricted fund balance represents amount reserved for emergencies under the Colorado State
Constitution. A restriction of $280 of the General Fund’s fund balance has been made in compliance with
this requirement.
Committed fund balance – the portion of fund balance constrained for specific purposes according to
limitations imposed by the Board of Directors prior to the end of the fiscal year. The constraint may be
removed or changed only through formal action of the Board of Directors. The District has no committed
fund balance.
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
- 18 -
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balances (continued)
Assigned fund balance – The portion of fund balance set aside for planned or intended purposes. The
intended use may be expressed by the Board of Directors or other individuals authorized to assign funds
to be used for a specific purpose. This classification is necessary to indicate that those funds are, at a
minimum, intended to be used for the purpose of that particular fund. The fund balance in the District’s
debt service fund is assigned for capital and service obligations.
Unassigned fund balance – The residual portion of fund balance that does not meet any of the above
criteria. The District will only report a positive unassigned fund balance in the General Fund.
If both restricted and unrestricted amounts of fund balance are available for use when expenditure is made,
it is the District’s policy to use restricted amounts first. Unrestricted fund balance will be used in the
following order: committed, assigned, and then unassigned.
Property Taxes
Property taxes are levied by the District Board of Directors. The levy is based on assessed valuation
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 property
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 taxpayers’ election,
in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on
delinquent properties are normally 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 inflows of resources
in the year there is an enforceable lien placed on the property and recognized as revenue in the period for
which they are levied.
Estimates
The presentation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
- 19 -
NOTE C – CASH AND INVESTMENTS
Deposits
At December 31, 2022, the District’s cash deposits had a carrying value of $3,790 and a corresponding
bank balance of $4,067, all of which was FDIC insured.
Deposits are exposed to custodial credit risk (the risk that, in the event of the failure of a depository
financial institution, the government would not be able to recover deposits or would not be able to recover
collateral securities that are in the possession of an outside party), if they are not covered by depository
insurance and are collateralized with securities held by the pledging financial institution, except for
deposits collateralized by certain types of collateral pools including a single financial institution collateral
pool where the fair value of the pool is equal to or exceeds all uninsured public deposits held by the
financial institution (e.g. deposits insured by The Public Deposit Protection Act (PDPA). Accordingly,
none of the District’s deposits at December 31, 2022, are deemed to be exposed to custodial credit risk.
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 off federal insurance levels must be collateralized. The eligible collateral is specified by PDPA.
PDPA allows the institution to create a single collateral pool for all public funds held. The pool is to be
maintained by another institution or held in trust for all the uninsured public deposits as a group. The
market value of the collateral must be at least equal to 102% of the uninsured deposits.
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 United States government agency securities
General obligation and revenue bonds of United States local government entities
Bankers’ acceptances of certain banks
Commercial paper
Written repurchase agreements collateralized by certain authorized securities
Certain money market funds
Local government investment pools
Local Government Investment Pools – As of December 31, 2022, the District had $192,984, invested in
the Colorado Local Government Liquid Asset Trust (ColoTrust), a local government investment pool. As
an investment pool, Colotrust operates under the Colorado Revised Statutes (24-75-701) and is overseen
by the Colorado Securities Commissioner. Colotrust invests in securities that are specified by the Colorado
Revised Statutes (24-75-601). Authorized securities include US Treasuries, US Agencies, commercial
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
- 20 -
NOTE C – CASH AND INVESTMENTS - CONTINUED
Investments (continued)
paper (rated A1 or better) and bank deposits (collateralized through PDPA). Colotrust operates similar to
a 2a-7-like money market fund with a share value equal to $1.00 and a maximum weighted average
maturity of 60 days. Colotrust is rated AAA by the Standard & Poor’s Corporation. A designated custodial
bank provides banking services and trust custody for securities held on behalf of the participating
governments in Colotrust. The custodian’s internal records identify the investments owned by the
participating governments.
NOTE D – LONG-TERM LIABILITIES
Authorized Debt
At December 31, 2022, the District had authorized but unissued general obligation debt and contractual
obligations for the following detailed purposes:
Transportation $ 27,500,000
Parks and recreation 8,100,000
Streets 7,500,000
Television 1,500,000
Sewer 500,000
Water 500,000
Traffic and safety 500,000
Fire protection 500,000
Mosquito and pest control 100,000
Operation and maintenance 100,000
Contractual obligations 93,600,000
$ 140,400,000
NOTE E – RELATED PARTIES
A majority of the members of the Board of Directors of the District are employees of East West Partners
(the Developer) or related entities.
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
- 21 -
NOTE F – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES
District Facilities Construction and Service Agreement
ASMD has entered into a second Amended and Restated Joint Facilities Construction and Service
Agreement (the Agreement) with Confluence Metropolitan District (CMD) dated April 26, 2007. This
Agreement was amended on May 25, 2021.
Under the Agreement, ASMD is to provide funding and the necessary tax base for financing the
construction, operation, and maintenance of the public improvements that benefit both Districts. ASMD
may also obtain financing for the construction of the public improvements and pay the proceeds to CMD.
CMD will manage the construction and operation of the public improvements, and own, operate, and
maintain the public improvements pursuant to a long-term operations and maintenance program.
Under the Agreement, ASMD is required to pay CMD all revenue raised from mill levies assessed by
ASMD to offset the operating expenses and construction costs incurred by CMD for provisions of services
to property within ASMD.
ASMD has assigned all revenue raised from mill levies assessed by AMSD to CMD in order to offset the
expenses of the construction of the public improvement and CMD’s costs of operation and maintenance of
such public improvements. The Agreement remains in force until all terms and conditions have been
performed in their entirety.
During 2022 ASMD paid $1,242,545 to CMD in accordance with this Agreement. ASMD has a service
and capital obligation to CMD pursuant to the agreement for costs incurred in excess of funds received.
The Agreement does not establish specific payment dates for these obligations. The capital and service
obligations total $24,251,835 at December 31, 2022.
Capital Pledge Agreement
On May 1, 2007 the District entered into a Capital Pledge Agreement with CMD and the Trustee whereby
ASMD has pledged certain revenues to assist in the repayment of the CMD bonds to the extent of the
pledged revenues. The Capital Pledge Agreement was amended and restated on June 1, 2021.
In June 2021 the District entered into the Amended and Restated Capital Pledge Agreement and the Capital
Pledge Agreement (subordinate) in connection with CMD’s issuance of the 2021 obligations.
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
- 22 -
NOTE F – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES – CONTINUED
Intergovernmental Agreement with Avon Urban Renewal Authority
The District entered into an Intergovernmental Agreement with the Avon Urban Renewal Authority (the
“Authority”) and Confluence Metropolitan District concerning incremental taxes on October 9, 2007.
Under the Intergovernmental Agreement the Authority agreed to remit to the Districts the incremental
revenue it receives as a result of ad valorem property taxes and specific ownership taxes levied by the
Districts except those upon Lot B in ASMD and upon any increase in the number of dwelling units
permitted or commercial square footage in the zoning entitlement as of February 27, 2007. The Districts
can use any District Tax Increment Revenue remitted for those purposes permitted by the Service Plan,
including paying for public improvements within the Districts. For the year ended December 31, 2022,
approximately $590,069 tax increment revenue was collected under this agreement.
NOTE G – RISK MANAGEMENT
The District is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets;
errors or omissions; injuries to employees, or acts of God.
The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as of
December 31, 2022. The Pool is an organization created by the 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 the past three years.
The District pays annual premiums to the Pool for liability, property, and public officials’ 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 H – 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 limitation 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
Avon Station Metropolitan District
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
- 23 -
NOTE H – TAX, SPENDING AND DEBT LIMITATIONS – CONTINUED
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 3, 1998, a majority of the District’s electors authorized the District (1) to increase taxes
annually unlimited as to rate or amount by the imposition of an ad valorem property tax levy to be in effect
for the life of the debt, which is limited to 20 years and (2) to collect, keep, and expend all District revenue
during 1999, and continuing thereafter without regard to limitation under TABOR.
On May 2, 2006, the majority of the District’s electors, authorized the removal of the 20 year term
restriction on the tax levy for operations.
Also, on November 3, 1998, the voters of the District authorized the issuance of $46,800,000 in debt,
$46,800,000 in contractual obligations, and approved an increase in the property tax revenue to pay such
debt and obligations. On May 2, 2006, voters of the District increased contractual obligations by
$46,800,000, bringing the total authorizations to $48,000,000 and $93,600,000 respectively.
The District’s management believes it is in compliance with the provisions of TABOR. However, TABOR
is complex and subject to interpretation. Many of the provisions, including the interpretation of how to
calculate Fiscal Year Spending limits will require judicial interpretation.
Variance
Original Final Over
Budget Budget Actual (Under)
Revenue -$ -$ -$ -$
Expenditures
General government
Audit 5,400 5,400 5,200 (200)
Elections 5,000 5,000 - (5,000)
Director's fees 2,250 2,250 1,300 (950)
Insurance 3,500 3,500 2,714 (786)
Other 500 500 123 (377)
Total expenditures 16,650 16,650 9,337 (7,313)
Revenues Over (Under) Expenditures (16,650) (16,650) (9,337) 7,313
Other Financing Sources (Uses)
Transfers in 21,333 42,887 39,351 (3,536)
Total Other Financing Sources 21,333 42,887 39,351 (3,536)
Net Change in Fund Balance 4,683 26,237 30,014 3,777
Fund Balance, beginning of year 125,588 126,031 126,031 -
Fund Balance, end of year 130,271$ 152,268$ 156,045$ 3,777$
Avon Station Metropolitan District
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - GENERAL FUND
For the year ended December 31, 2022
- 24 -
Avon Station Metropolitan District
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2022
- 25 -
RSI NOTE A – BUDGETARY INFORMATION
Budgets for major governmental funds are adopted on the modified accrual basis where capital
outlays are treated as expenditures and depreciation is not budgeted. The operating budget
includes proposed expenditures and the means of financing them. The Board of Directors must
approve transfers between funds, or increases to a fund’s budget.
RSI NOTE B – EXPENDITURES/EXPENSES IN EXCESS OF APPROPRIATION
State Statute requires that expenditures and transfers for a fund cannot exceed the appropriations
for that fund. Appropriations for a fund may be increased provided unanticipated resources offset
them.
The budget is controlled at the departmental level within each fund. However, the legal level of
appropriation is within the fund. In 2022, the District did not have any budget violations.
Variance
Original Final Over
Budget Budget Actual (Under)
Revenue
Property taxes 1,205,290$ 1,212,478$ 1,212,475$ (3)$
Specific ownership taxes 58,139 105,000 99,939 (5,061)
Interest income 1,163 6,500 5,896 (604)
Total Revenue 1,264,592 1,323,978 1,318,310 (5,668)
Expenditures
General government
Treasurer's Fees 36,159 36,415 36,414 (1)
Intergovernmental agreement with
Confluence Metropolitan District
Capital obligation 815,796 850,952 848,835 (2,117)
Service obligation 391,304 393,723 393,710 (13)
Total Expenditures 1,243,259 1,281,090 1,278,959 (2,131)
Revenues Over (Under) Expenditures 21,333 42,888 39,351 (3,537)
Other Financing Sources (Uses)
Transfers out (21,333) (42,888) (39,351) 3,537
Total Other Financing Uses (21,333) (42,888) (39,351) 3,537
Net Change in Fund Balance - - - -
Fund Balance, beginning of year 35,000 35,000 35,000 -
Fund Balance, end of year 35,000$ 35,000$ 35,000$ -$
Avon Station Metropolitan District
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND
For the year ended December 31, 2022
- 26 -
Prior Year
Assessed
Valuation
for Current Percent
Year ending Year Property Mills Collected
31-Dec Tax Levy Levied Levied Collected to Levied
2005 1,283,720$ 45.000 57,768$ 57,768$ 100.0%
2006 1,628,280 45.000 73,273 73,273 100.0%
2007 1,628,280 45.000 73,273 73,273 100.0%
2008 5,515,510 45.000 248,198 248,673 100.2%
2009 11,893,230 45.000 535,195 535,018 100.0%
2010 21,095,610 45.000 949,302 920,745 97.0%
2011 21,093,700 45.000 949,217 948,732 99.9%
2012 13,469,790 58.000 781,248 780,704 99.9%
2013 13,244,680 58.000 768,192 768,192 100.0%
2014 12,659,710 58.000 734,263 734,262 100.0%
2015 12,526,370 58.000 726,529 726,528 100.0%
2016 14,607,570 58.000 847,239 847,156 100.0%
2017 14,337,080 63.000 903,236 903,236 100.0%
2018 12,696,830 65.585 832,722 826,809 99.3%
2019 12,695,090 65.596 832,747 827,871 99.4%
2020 15,947,630 65.572 1,045,718 1,045,742 100.0%
2021 16,471,320 65.780 1,083,483 1,083,422 100.0%
2022 17,539,380 66.295 1,205,291 1,212,475 100.6%
2023 16,954,840 67.465 1,187,042 N/A 0.0%
Property Taxes
Avon Station Metropolitan District
SUMMARY OF ASSESSED VALUATION,
MILL LEVY, AND PROPERTY TAX COLLECTION
- 27 -
EXHIBIT A-2
2022 Audit
Confluence Metropolitan District
CONFLUENCE METROPOLITAN DISTRICT
FINANCIAL STATEMENTS AND REPORT OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
December 31, 2022
TABLE OF CONTENTS
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position 7
Statement of Activities 8
Fund Financial Statements
Balance Sheet – Governmental Funds 9
Reconciliation of the Governmental Funds Balance Sheet to the Statement of
Net Position 10
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 11
Reconciliation of the Statement of Revenues, Expenditures and Change in
Fund Balance – Government Funds to the Statement of Activities 12
Notes to the Financial Statements 13
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund 27
Notes to Required Supplementary Information 28
Other Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – Debt Service Fund 29
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – Gondola/Capital Reserve Fund 30
Schedule of Bond Obligations and Interest Requirements to Maturity 31
2499 Hwy. 6&50 www.csdcpa.com 970-245-3000
Grand Junction, CO 81505 e-mail info @ csdcpa.com FAX 970-242-4716
TOLL FREE 877-245-8080
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
Confluence Metropolitan District
c/o Marchetti & Weaver LLC
28 Second Street, Suite 213
Edwards, CO 81632
Opinions
We have audited the accompanying financial statements of the governmental activities, and each
major fund of Confluence Metropolitan District (the District) as of and for the year ended
December 31, 2022, 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 financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of Confluence
Metropolitan District, as of December 31, 2022, and the respective changes in financial position
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. 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, 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 for 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 generally
accepted auditing standards will always detect a material misstatement when it exists. The risk of
Confluence Metropolitan District
Page Two
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 generally accepted auditing standards, 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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and general fund budgetary comparison information be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
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 budgetary comparison
information for the debt service and gondola/capital reserve funds are presented for purposes of
Confluence Metropolitan District
Page Three
additional analysis and are not a required part of the basic financial statements. Such 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, the budgetary
comparison information for the debt service and gondola/capital reserve funds are fairly stated, in
all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the schedule of bond obligations and interest requirements to maturity but
does not include the basic financial statements and our auditor’s report thereon. Our opinions on
the basic financial statements do not cover the other information, and we do not express an opinion
or any form of assurance thereon.
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.
Chadwick, Steinkirchner, Davis & Co., P.C.
June 27, 2023
4
Confluence Metropolitan District
Management’s Discussion and Analysis
December 31, 2022
As management of Confluence Metropolitan District (the “District”), we offer readers of the District’s financial
statements this narrative overview and analysis of the financial activities of the District for the fiscal year
ended December 31, 2022.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements. The District’s basic financial statements comprise three components: 1) government-wide
financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also
contains supplementary information presented after the notes to the financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on the District’s assets, deferred outflows, liabilities, and
deferred inflows with the difference reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the District is improving or
deteriorating.
The Statement of Activities presents information showing how the government’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods.
The governmental activity of the District is the financing, installation and operation of the gondola
transportation and other infrastructure systems for the Avon Station Metropolitan District.
The government-wide financial statements can be found on pages 7 and 8 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The District, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. The District currently has four funds, the General Fund, the Debt Service Fund, the Capital
Projects Fund, and the Gondola Reserve Fund, all of which are governmental funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the government-
wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of
expendable resources, as well as on balances of expendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions. Both the expenditures
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities. The governmental fund financial statements are located on pages 9
through 12 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The Notes to the
Financial Statements can be found starting on page 13 of this report.
5
Government-wide Financial Analysis. The following tables show condensed financial information derived
from the government-wide financial statements.
Statement of Net Position
2022 2021
Current assets 2,161,786$ 2,153,436$
Capital and other non-current assets 30,103,021 30,472,919
Total Assets 32,264,807 32,626,355
Current liabilities 2,524,662 2,428,055
Non-current liabilities 23,534,785 23,904,993
Total Liabilities 26,059,447 26,333,048
Net position:
Net Investment in fixed assets (18,027,698) (17,959,098)
Restricted for emergencies 18,901 18,901
Unrestricted 24,214,157 24,233,504
Total Net Position 6,205,360$ 6,293,307$
Governmental
Activities
The District is the “service district” in a dual district structure whereby the District constructed the
infrastructure for the Avon Station Metropolitan District (ASMD) subdivision. The District entered into a
District Facilities Joint Financing and Service Agreement with ASMD which has been subsequently
amended. Pursuant to this agreement, the District is obligated to construct and provide the initial financing
for the primary infrastructure for the ASMD area. ASMD is the “financing district” and as such, will ultimately
pay “capital and service obligations” to reimburse the District for the costs to construct, maintain, and operate
the infrastructure. The District will then use the funds received from ASMD to pay off the District’s debt. In
addition, the District has an Intergovernmental Agreement with Mountain Vista Metropolitan District to
provide funds for specific infrastructure regional improvements, the debt obligation within the agreement
expired February 2020, the operations obligation continues.
The District’s revenues consists primarily of operating and capital contributions received or accrued from
ASMD pursuant to the District Facilities Construction and Service Agreement. Other sources of revenues
Statement of Activities
2022 2021
REVENUES:
Program revenues: -$ -$
Operating grants and contributions 1,263,981 29,244,558
Capital Contributions 852,836 852,836
General revenues:
Interest and other revenue 39,309 5,000,962
Total Revenues 2,156,126 35,098,356
EXPENSES:
Program expenses:
General government 663,636 1,084,355
Transportation 806,275 888,795
Intergovernmental agreement (53,273) 4,339,020
Interest on long-term debt 827,435 981,218
Total Expenses 2,244,073 7,293,388
Change in Net Position (87,947) 27,804,968
Net Position - Beginning 6,293,307 (21,511,661)
Net Position - Ending 6,205,360$ 6,293,307$
Governmental Activities
6
include contributions from the Town of Avon toward the operating costs of the plaza and gondola and
operating and maintenance contributions from Mountain Vista Metropolitan District.
Financial Analysis of the District’s Funds
As mentioned earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the District’s governmental funds is to provide information on near-term
inflows, outflows, and balances of expendable resources. Such information is useful in assessing the
District’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the District’s governmental funds reported a combined ending fund
balance of $1,795,852. The fund balance primarily consists of funds being held in escrow accounts for
capital reserves and future debt payments.
Budget variances. The District expenditures were similar to budgeted results. Details for each of the funds
can be seen on pages 27 through 30 of this report.
Capital assets. The District’s net investment in capital assets decreased by $423,558 as a result of
depreciation expense being greater than capital additions. Additional information as well as a detailed
classification of the District’s net capital assets can be found in the Notes to the Financial Statement on page
19 of this report.
Long-term debts. In June 2021 the District issued Series 2021 A-1 Senior Note in the amount of
$1,500,000, a Series 2021 A-2 Senior Note in the amount of $17,200,000 and a Series 2021 B Subordinate
Bond in the amount of $4,420,000 to refund the remining principal of the Series 2007 tax supported revenue
bonds. Additional information can be found in the Notes to the Financial Statement on pages 20 through 22
of this report.
Request for Information
This financial report is designed to provide a general overview of the District’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to Confluence Metropolitan District,
Marchetti & Weaver LLC, P.C., 28 Second Street, Suite 213, Edwards, CO 81632 or you may call (970) 926-
6060.
Assets
Current Assets
Cash and cash equivalents 2,017,512$
Accounts receivable 15,680
Property taxes receivable 22,474
Due from Avon Station Metropolitan District 15,331
Prepaid expense 37,516
Current portion of Capital and Service obligations from
Avon Station Metropolitan District 53,273
Total Current Assets 2,161,786
Noncurrent Assets
Capital and Service obligations from Avon
Station Metropolitan District 24,198,562
Capital assets
Depreciable 12,277,956
Accumulated depreciation (6,428,207)
Total Noncurrent Assets 30,048,311
Total Assets 32,210,097
Deferred Outflows of Assets
Deferred loss on refunding 54,710
Liabilities
Current liabilities
Accounts payable 203,468
Accrued interest payable 1,869,339
Unearned revenue 86,855
Current maturities of long-term debt 365,000
Total Current Liabilities 2,524,662
Noncurrent Liabilities
Amounts due to developer 991,101
Bonds payable 22,521,346
Total Noncurrent Liabilities 23,512,447
Total Liabilities 26,037,109
Deferred Inflows of Resources
Property taxes 22,338
Net Position
Net investment in capital assets (18,027,698)
Restricted for emergencies 18,901
Unrestricted 24,214,157
Total Net Position 6,205,360$
The accompanying notes are an integral part of these financial statements.
Confluence Metropolitan District
STATEMENT OF NET POSITION
December 31, 2022
- 7 -
Program Operating Capital Net (Expense)
Expenses Contributions Contributions Revenue
Governmental Operations
General government 663,636$ -$ -$ (663,636)$
Transportation 806,275 266,135 (540,140)
Intergovernmental agreement (53,273) 997,846 852,836 1,903,955
Interest expense 827,435 - - (827,435)
Totals 2,244,073$ 1,263,981$ 852,836$ (127,256)
General Revenues
Property tax 24,446
Interest income 14,863
Total General Revenues 39,309
Change in Net Position (87,947)
Net Position, beginning of year 6,293,307
Net Position, end of year 6,205,360$
The accompanying footnotes are an integral part of these financial statements.
For the year ended December 31, 2022
STATEMENT OF ACTIVITIES
Confluence Metropolitan District
- 8 -
Total
Debt Gondola/Capital Governmental
General Service Reserve Funds
Assets
Cash 283,018$ 723,823$ 1,010,671$ 2,017,512$
Accounts receivable 15,680 - - 15,680
Property taxes receivable 22,474 - - 22,474
Due from Avon Station and Mountain
Vista Metropolitan Districts - 15,331 - 15,331
Prepaid expense 37,516 - - 37,516
Total Assets 358,688$ 739,154$ 1,010,671$ 2,108,513$
Liabilities, Deferred Inflows, and Fund Balance
Liabilities
Accounts payable 203,468$ -$ -$ 203,468$
Unearned revenue 86,855 - - 86,855
Total Liabilities 290,323 - - 290,323
Deferred inflows of resources
Property taxes 22,338 - - 22,338
Fund Balances
Nonspendable - prepaid expense 37,516 - - 37,516
Restricted for emergencies 18,901 - - 18,901
Restricted for debt service - 739,154 - 739,154
Assigned for gondola/capital reserve - - 1,010,671 1,010,671
Unassigned (10,390) - - (10,390)
Total Fund Balance 46,027 739,154 1,010,671 1,795,852
Total Liabilities, Deferred Inflows,
and Fund Balance 358,688$ 739,154$ 1,010,671$ 2,108,513$
The accompanying notes are an integral part of these financial statements.
Confluence Metropolitan District
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2022
- 9 -
Total Fund Balances 1,795,852$
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Capital assets, net of accumulated depreciation, used in governmental funds are not
financial resources, and therefore are not reported in the governmental funds. 5,849,749
Accrued expenses, including interest payable on outstanding debt, do not require
current financial resources. Therefore, they are not reported as liabilities in
governmental funds balance sheets. (1,869,339)
Amounts owed to the District for costs incurred to construct, operate, and maintain
infrastructure are not collectible in the current period and, therefore, are not
reported in the governmental funds, net of allowance for doubtful accounts. 24,251,835
Long-term liabilities, including amounts owed to developer and bonds payable, are
not due and payable in the current period and, therefore, are not reported in the
governmental funds.
Loss on debt refunding 54,710$
Developer advance (991,101)
Long-term debt (22,750,000)
Premium on bond issuance (136,346) (23,822,737)
Total Net Position 6,205,360$
The accompanying notes are an integral part of these financial statements.
Confluence Metropolitan District
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEETS TO THE STATEMENT OF NET POSITION
December 31, 2022
- 10 -
Total
Debt Gondola/Capital Governmental
General Service Reserve Funds
Revenue
Property tax 24,446$ -$ -$ 24,446$
TIFF payments from Town of Avon 204,715 385,354 - 590,069
Payments from Avon Station
Metropolitan District 393,710 848,833 - 1,242,543
Payments from Mountain Vista
Metropolitan District 18,070 - - 18,070
Payments from Town of Avon 266,135 - - 266,135
Interest income (11,981) 15,194 11,650 14,863
Total Revenue 895,095 1,249,381 11,650 2,156,126
Expenditures
General government
Accounting 34,326 - - 34,326
Audit 7,650 - - 7,650
Directors' fees 1,399 - - 1,399
Elections 1,949 - - 1,949
Insurance 24,713 - - 24,713
Legal 23,590 - - 23,590
Miscellaneous 210 - - 210
Treasurer's fees 682 - - 682
Landscape/entry monument 404,205 - - 404,205
Paying agent fees - 9,073 - 9,073
Transportation
Airspace lease 4,480 - - 4,480
Utilities 26,659 - - 26,659
Gondola insurance 41,082 - - 41,082
Gondola operations 287,182 - - 287,182
Gondola repairs and maintenance 2,200 - - 2,200
Gondola management 75,000 - - 75,000
Plaza operations 101,953 - - 101,953
Debt Service
Interest - 775,599 - 775,599
Total Expenditures 1,037,280 784,672 - 1,821,952
Revenues Over (Under) Expenditures (142,185) 464,709 11,650 334,174
Other Financing Sources (Uses)
Payoff of 2007 bonds - (350,000) - (350,000)
Transfers in - - 129,500 129,500
Transfers out (129,500) - - (129,500)
Total Other Financing Sources (Uses) (129,500) (350,000) 129,500 (350,000)
Revenues and Other Financing Sources
(Uses) Over (Under) Expenditures (271,685) 114,709 141,150 (15,826)
Fund Balance, beginning of year 317,712 624,445 869,521 1,811,678
Fund Balance, end of year 46,027$ 739,154$ 1,010,671$ 1,795,852$
Confluence Metropolitan District
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended December 31, 2022
The accompanying notes are an integral part of these financial statements.
- 11 -
Reconciliation to the Statement of Activities
Total net change in fund balances - governmental funds (15,826)$
Amounts reported for governmental activities in the Statement of
Activities are different because:
Depreciation expense on capital assets was reported in the Statement of Activities
but it did not require the use of current financial resources. Therefore, depreciation
expense is not reported as an expenditure in the governmental funds. (423,558)
Increases and decreases in capital and service obligation owed to Confluence
Metropolitan District do not produce or use current financial resources and,
therefore, are not reported in the governmental funds. 53,273
Long-term debt activity is recognized as other financing sources and uses
and expenditures in the fund financial statements, but in the government wide
statements they are recognized as long-term liabilities.
Amortization of bond premium 4,958$
Principal payments on long term debt 350,000
Amortization of loss on refunding (4,757) 350,201
Changes in accrued interest on long-term debt is reported in the Statement of
Activities, but does not require the use of current financial resources; therefore, the
expense associated with the increases in accrued interest is not reported as
expenditures in governmental funds. (52,037)
Change in net position of governmental activities (87,947)$
The accompanying notes are an integral part of these financial statements.
Confluence Metropolitan District
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended December 31, 2022
TO THE STATEMENT OF ACTIVITIES
- 12 -
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 13 -
NOTE A – ORGANIZATION AND DEFINITION OF REPORTING ENTITY
The District, a quasi-municipal organization, was organized on February 8, 1999, and is governed pursuant
to provisions of the Colorado Special District Act. The District’s service area is located in Eagle County,
Colorado. The District was established as part of a dual district structure with the Avon Station
Metropolitan District (ASMD). The District is considered the service district and was established to
provide water, street, traffic and safety, fire protection and emergency medical services, television relay,
transportation, parks and recreation, sanitation, and mosquito and pest control improvements. ASMD is
the financing district and was established to provide funding and tax base for capital improvements
constructed and operated by the District (see Note H).
The District has no employees and all services are contracted.
The District follows the Governmental Accounting Standards Board (GASB) accounting pronouncements
which provide guidance for determining which governmental activities, organizations, and functions
should be included within the financial reporting entity. GASB pronouncements set forth the financial
accountability of a governmental organization’s elected governing body as the basic criterion for including
a possible component governmental organization in a primary government’s legal entity. Financial
accountability includes, but is not limited to, appointment of a voting majority of the organization’s
governing body, ability to impose its will on the organization, a potential for the organization to provide
specific financial benefits or burdens and fiscal dependency.
The District is not financially accountable for any other organization, nor is the District a component unit
of any other primary governmental entity.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The District’s basic financial statements consist of government-wide statements, including the Statement
of Net Position and the Statement of Activities. These financial statements include all of the activities of
the District. For the most part, the effect of interfund activity has been removed from these statements.
The Statement of Net Position and the Statement of Activities display information about the District as a
whole. These statements include the financial activities of the primary government. The Statement of Net
Position presents the financial condition of the governmental activities at year-end. The Statement of
Activities presents a comparison between program expenses and the program revenues for each program
or function of the District’s governmental activities. Program expenses are those that are specifically
associated with a service, program, or department; and therefore, clearly identifiable to a particular
function. Program revenues include charges paid by the recipient of the goods or services offered by the
program, grants and contributions that are restricted to meeting the operational or capital requirements of
a particular program, and interest earned on grants that is required to be used to support a particular
program. Revenues which are not classified as program revenues are presented as general revenues of the
District, with certain limited exceptions. The comparison of program expenses with program revenues
identifies the extent to which each governmental function is self-financing or draws from the general
revenues of the District.
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 14 -
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Measurement focus, basis of accounting and financial statement presentation
The government-wide financial statements are reported using the current financial resources measurement
focus and the accrual basis of accounting. With this measurement focus, only current assets and current
liabilities generally are included on the balance sheet. The Statement of Revenues, Expenditures, and
Changes in Fund Balances reports on the sources (revenues and other financing sources) and uses
(expenditures and other financing uses) of current financial resources. This approach differs from the
manner in which the governmental activities of the government-wide financial statements are prepared.
Governmental fund financial statements therefore include reconciliation with brief explanations to better
identify the relationship between the government-wide statements and the statements for governmental
funds.
During the year, the District segregates transactions related to certain District functions or activities in
separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial
statements are designed to present financial information of the District at this more detailed level. The
focus of governmental fund financial statements is on major funds.
The District reports the following governmental funds:
General Fund – the General Fund is the general operating fund of the District. It is used to account for all
financial resources except those required to be accounted for in another fund.
Debt Service Fund – the Debt Service Fund is used to account for the accumulation of resources for and
the payment of long-term obligation principal, interest and related costs.
Gondola/Capital Reserve Fund – the Gondola/Capital Reserve Fund is used to account for financial
resources to be used for future repairs of the gondola and capital improvements.
Fair value of financial statements
Investments are stated at fair value in compliance with GASB 72, Fair Value Measurement and
Applications. The definition of fair value is the price that would be received to sell an asset or pay to
transfer a liability in an orderly transaction between market participants at the measurement date.
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 15 -
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Use of estimates
The presentation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report 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(s) and will not be recognized as an
outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report 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(s) and will not be recognized as an
inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from
property taxes for which there is an enforceable legal claim as of December 31, 2021, but which are levied
to financial year 2022. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available.
Capital assets
Capital assets are those items purchased or constructed by the government that have a useful life greater
than 1 year and a cost that meets or exceeds the capitalization threshold of $5,000 as set by District policy.
These assets are reported in the governmental activities column of the government-wide Statement of Net
Position but are not reported in the fund financial statements. All capital assets are capitalized at cost, or
estimated historical cost, and updated for additions and retirements during the year. Donated fixed assets
are recorded at their acquisition value as of the date received. Improvements are capitalized, however, the
costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an
asset’s life are not capitalized.
All reported capital assets except construction in progress are depreciated. Depreciation is computed using
the straight-line method over the asset’s estimated useful life. The estimated useful lives are as follows:
Improvements 15 years
Gondola 30 years
Buildings 25 years
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 16 -
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fund equity
Fund balance for governmental funds should be reported in classifications that comprise a hierarchy based
on the extent to which the government is bound to honor constraints on the specific purposes for which
spending can occur. Governmental funds report up to five classifications of fund balance: nonspendable,
restricted, committed, assigned, and unassigned. Because circumstances differ among governments, not
every government or every governmental fund will present all of these components. The following
classifications describe the relative strength of the spending constraints:
Nonspendable – The portion of fund balance that cannot be spent because it is either not in spendable
form (such as prepaid amounts or inventory) or is legally or contractually required to be maintained intact.
Restricted – The portion of fund balance that is constrained to be used for specific purpose by external
parties (such as bondholders), constitutional provisions, or enabling legislation. The District’s restricted
fund balance represents amounts reserved for emergencies under the Colorado State Constitution, and
amounts restricted for debt service.
Committed – 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 though formal action of the Board
of Directors. The District has no committed fund balance.
Assigned – The portion of fund balance set aside for planned or intended purposes. The intended use may
be expressed by the Board of Directors or other individuals authorized to assign funds to be used for a
specific purpose. This classification is necessary to indicate that those funds are, at a minimum, intended
to be used for the purpose of that particular fund. The fund balance in the District’s gondola reserve fund
is assigned for future gondola repairs.
Unassigned – The residual portion of fund balance that does not meet any of the criteria described above.
The District will only report a positive unassigned fund balance in the General Fund.
NOTE C – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgetary information
In accordance with 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.
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 17 -
NOTE C – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED
Budgetary information (continued)
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.
NOTE D – CASH AND INVESTMENTS
Cash and investments
As of December 31, 2022, cash and investments are classified in the accompanying financial statements
as follows:
Statement of net position:
Deposits $ 9,609
Certificates of Deposit 457,995
Money Market 539,923
Colotrust 1,009,985
Cash and investments $ 2,017,512
Custodial and concentration of credit risk
Custodial credit risk is the risk that in the event of the failure of a depository financial institution, the
government would not be able to recover deposits or collateral securities that are in the possession of an
outside party. Deposits are exposed to custodial credit risk if they are not covered by depository insurance
and collateralized with securities held by the pledging financial institution, or collateralized by certain
types of collateral pools including a single financial institution collateral pool where the fair value of the
pool is equal to or exceeds all uninsured public deposits held by the financial institution (e.g. deposits
insured by The Public Deposit Protection Act (PDPA). Accordingly, none of the District’s deposits at
December 31, 2021, are deemed to be exposed to custodial credit risk.
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 specified by PDPA.
PDPA allows the institution to create a single collateral pool for all public funds held. The pool is to be
maintained by another institution or held in trust for all the uninsured public deposits as a group. The
market value of the collateral must be at least equal to 102% of the uninsured deposits.
At December 31, 2022, the District’s cash deposits and certificates of deposit had a carrying value of
$467,604 and a corresponding bank balance of $499,335, all of which was FDIC insured.
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 18 -
NOTE D – CASH AND INVESTMENTS - CONTINUED
Pooled cash
The District follows the practice of pooling cash and investments of all funds to maximize net investment
income. 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. Net investment income is allocated periodically to the participating funds based
upon each fund’s average equity balance in the total cash.
Certificates of Deposit
During the year the District invested in negotiable certificates of deposit (CDs) with various
financial institutions. Negotiable CDs can be bought and sold on the secondary market prior to
their maturity date. These investments were recorded at cost, which is the amount paid to acquire
them, and are reported at fair value in the Statement of Net Position. Fair value is determined
based on quoted market prices.
The negotiable CDs have maturities ranging from 1 to 5 years and carry interest rates ranging
from 1.60% to 1.80%. The District may be subject to liquidity risk if it needs to sell these
investments prior to maturity, as the market value of negotiable CDs can fluctuate based on
changes in interest rates and credit ratings of the issuer. However, the District does not anticipate
the need to sell these investments prior to their maturity dates.
As of December 31, 2022, the carry value of negotiable CDs held by the District was $480,000
and the fair value was $460,653, resulting in an unrealized loss of $19,347.
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 United States government agency securities
General obligations and revenue bonds of United States local government entities
Bankers’ acceptances of certain banks
Commercial paper
Written repurchase agreements collateralized by certain authorized securities
Certain money market funds
Local government investment pools
Local Government Investment Pools – At December 31, 2022, the District had $1,009,985 invested in
Colorado Local Government Liquid Asset Trust (COLOTRUST), an investment vehicle established for
government entities in Colorado to pool surplus funds. As an investment pool, COLOTRUST operates
under the Colorado Revised Statutes (24-75-701) and is overseen by the Colorado Securities
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 19 -
NOTE D – CASH AND INVESTMENTS - CONTINUED
Commissioner. The Trust invests in securities that are specified by the Colorado Revised Statutes (24-75-
601). These assets are valued at net asset value per share as determined by the pool.
Authorized securities include US Treasuries, US Agencies, commercial paper, repurchase agreements and
bank deposits (collateralized through PDPA). The Trust operates similar to a 2a7-like money market fund
with a share value equal to $1.00 and a maximum weighted average maturity of 60 days. COLOTRUST
is rated AAA by the Standard & Poor’s Corporation. Designated custodial banks provide safekeeping and
depository services to the Trusts in connection with the direct investment and withdrawal functions of the
Trusts. Substantially all securities owned by the Trusts are held by the Federal Reserve Bank in the account
maintained for the custodial bank.
NOTE E – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022 was as follows:
Balance Balance
December 31, December 31,
2021 Additions Retirements 2022
Depreciable
Improvements $ 286,189 $ – $ – $ 286,189
Upper Terminal 173,442 – – 173,442
Gondola 7,715,649 – – 7,715,649
Lower Public Plaza 4,102,676 – – 4,102,676
Total capital assets 12,277,956 – – 12,277,956
Less accumulated depreciation
Improvements (267,106 (19,083) – (286,189)
Upper terminal (83,750) (5,781) – (89,531)
Gondola (3,808,591) (261,938) – (4,070,529)
Lower Public Plaza (1,845,202) (136,756) – (1,981,958)
Total accumulated depreciation (6,004,649) (423,558) – (6,428,207)
Net capital assets $ 6,273,307 $ (423,558) $ – $ 5,849,749
Depreciation expense was allocated $267,719 to the transportation function and $155,839 to the general
government function.
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 20 -
NOTE F – LONG-TERM OBLIGATIONS
The following is an analysis of the change in long-term obligations for the year ended December 31, 2021:
Balance Balance
December 31, December 31, Due Within
2021 Additions Retirements 2022 One Year
Due to Developer $ 991,101 $ – $ – $ 991,101 $ –
A description of the long-term obligations outstanding as of December 31, 2022, is as follows:
Developer Advances
On August 22, 2006, the District entered into a Funding and Reimbursement Agreement with East West
Resort Development XIV L.L.P. The Developer agreed to advance funds to the District, up to a maximum
of $25,000,000 to enable the District to improve property and to acquire those public facilities and
improvements that were paid for by the Developer within the District boundaries. Any amounts advanced
to the District under this original agreement bear an annual interest rate of 12 percent, and the agreement
automatically renewed each year unless terminated by the Developer.
On December 18, 2007 the District entered into the First Amendment to the Funding and Reimbursement
Agreement. The Amendment acknowledged the repayment of principal amounts owed to the Developer
for advances made to the District excluding unpaid interest of $1,062,963 which remains due and owing
to the Developer. In addition the Developer agreed to continue to advance funds to the District up to a
maximum of $1,000,000 through January 31, 2009 to enable the District to provide operations and
continue to improve property and to acquire those public facilities and improvements that have been paid
for by the Developer within the District boundaries. Any amounts advanced to the District under this
amended agreement also bear an annual interest rate of 12 percent, and the agreement automatically
Balance Balance
December 31, December 31, Due in
Bonds 2021 Additions Retirements 2022 Next Year
2021A-1 Senior
Refunding Loan 1,480,000$ -$ (350,000)$ 1,130,000$ 365,000$
2021A-2 Senior
Refunding Loan 17,200,000 - - 17,200,000 -
2021B Subordinate Bond 4,420,000 - - 4,420,000 -
2021B Subordinate Bonds
Premium 141,304 - (4,958) 136,346 4,958
Total Bonds 23,241,304$ -$ (354,958)$ 22,886,346$ 369,958$
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 21 -
NOTE F – LONG-TERM OBLIGATIONS - CONTINUED
renews each year unless terminated by the Developer.
On August 26, 2008, the District entered into the Second Amendment to the Funding and Reimbursement
Agreement. The amendment modified the interest rate to the prime rate specified in the Wall Street Journal
on January 1, plus 2%. All other terms of the Agreement remain the same.
On January 31, 2009, the District entered into a Third Amendment to the Funding and Reimbursement
Agreement whereby the Developer agreed to continue to advance funds up to a maximum of $1,400,000
through December 31, 2011. All other terms of the Agreement remained the same.
On November 29, 2011, the District entered into a Fourth Amendment to the Funding and Reimbursement
Agreement whereby the Developer shall have no further obligation to advance funds to the District after
December 31, 2011. All other terms of the Agreement remained the same.
Repayment of amounts due to the Developer is subordinated to debt service requirements of the District’s
Tax Supported Revenue Bonds. At December 31, 2022, in addition to outstanding developer advances of
$991,101, unpaid interest due to the developer totaled $742,242.
2021A-1 and 2021A-2 Senior Notes and 2021B Bonds
On June 10, 2021, the District closed on two loans in the aggregate amount of $18,700,000 consisting of
the 2021A-1 Senior Loan in the amount of $1,500,000 and the 2021A-2 Senior Loan in the amount of
$17,200,000. The proceeds of these loans were used to redeem the Refunded 2007 bonds on June 17,
2021. $499,414 of the proceeds from the 2021A-2 Loan were credited to the Senior Reserve Fund. Interest
rates on the 2021A-1 and 2021A-2 loans are 1.540% to 3.060% and are due on December 1 and June 1
beginning in 2021. The loans are scheduled to be paid off in 2025 and 2050, respectively.
The 2021B Bonds were issued on June 10, 2021 in the amount of $4,420,000 with a premium of $143,783.
Principal payments on the bonds begin in 2021 and carry an interest rate of 5.500%. The bonds will be
paid off in 2050.
The refunding resulted in a loss on refunding of $61,846 and an economic loss of $8,725,393.
Future maturities of the District’s bonds are as follows:
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 22 -
NOTE F – LONG-TERM OBLIGATIONS - CONTINUED
2021A-1 and 2021A-2 Senior Notes and 2021B Bonds - continued
Authorized Debt
At December 31, 2022, the District has authorized but unissued general obligation debt for the following
improvement purposes:
NOTE G – RELATED PARTIES
A majority of the members of the Board of Directors of the District are employees of the East West
Partners (the Developer) or related entities.
Principal Interest Total
2023 365,000$ 769,622$ 1,134,622$
2024 395,000 764,001 1,159,001
2025 550,000 757,324 1,307,324
2026 590,000 742,320 1,332,320
2027 610,000 720,030 1,330,030
2028-2032 3,680,000 3,224,796 6,904,796
2033-2037 3,785,000 3,068,598 6,853,598
2038-2042 3,500,000 3,155,900 6,655,900
2043-2047 4,925,000 2,045,175 6,970,175
2048-2050 4,350,000 515,075 4,865,075
22,750,000$ 15,762,841$ 38,512,841$
1998 Electoral 2006 Electoral 2020 Electoral Authorization Used Remaining
Authorization Authorization Authorization Series 2021 Bonds Authorization
Transportation 27,500,000$ 27,500,000$ -$ (9,994,422)$ 45,005,578$
Parks and recreation 8,100,000 8,100,000 - (5,453,142) 10,746,858
Streets 7,500,000 7,500,000 - (7,180,352) 7,819,648
Television 1,500,000 - - - 1,500,000
Sewer 500,000 1,500,000 - (1,095,288) 904,712
Water 500,000 1,500,000 - (768,604) 1,231,396
Traffic and safety 500,000 - - (173,192) 326,808
Fire protection 500,000 - - - 500,000
Mosquito and pest control 100,000 - - - 100,000
Operation and maintenance 100,000 1,200,000 - - 1,300,000
Refunding District Debt - - 47,800,000 (23,120,000) 24,680,000
46,800,000$ 47,300,000$ 47,800,000$ (47,785,000)$ 94,115,000$
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 23 -
NOTE H – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES
District Facilities Construction and Service Agreement
The District has entered into a Second Amended and Restated Joint Facilities Construction and Service
Agreement (the Agreement) with Avon Station Metropolitan District (“the Financing District”) dated
April 26, 2007. On May 25, 2021 a First Amendment to the Agreement was approved in connection with
the issuance of the 2021 obligations.
Under the Agreement, the Financing District is to provide funding and the necessary tax base for financing
the construction, operation, and maintenance of the public improvements that benefit both of the Districts.
The Financing District may also obtain financing for the construction of the public improvements and pay
the proceeds to the District.
The District will manage the construction and operation of the public improvements, and own, operate,
and maintain the public improvements pursuant to a long-term operations and maintenance program.
Under the Agreement, the Financing District has assigned all revenue raised from mill levies assessed by
ASMD to the District in order to offset the expenses of the construction of the public improvements and
the District’s costs of operation and maintenance of such public improvements. The Agreement remains
in force until all terms and conditions have been performed in their entirety. The Financing District’s
primary revenue source is property taxes collectible annually based on a set mill levy applied to the
assessed valuation of the Financing District’s property.
During 2022, the District received $1,242,543 from the Financing District in accordance with this
agreement. As of December 31, 2022, the District had incurred $24,251,837 in unreimbursed
expenditures, which the Financing District will be obligated to pay pursuant to this agreement to the extent
of legally available revenues. Previously an allowance for doubtful accounts was established to offset the
full amount of the obligation due from ASMD as it was anticipated that there may be insufficient tax
revenues collected in accordance with the Capital Pledge Agreement to pay down this obligation and
future costs incurred, such as interest expense on the bonds. The refinancing of the debt in 2021 and the
development of housing within the district in 2021 and 2022 has decreased the likelihood that the Capital
and Service Obligations will not be received from Avon Station Metropolitan District and thus the District
has recognized the receivable in full at December 31, 2022. The long-term receivable will be shown as
follows:
Capital and Service obligations from Avon
Station Metropolitan District $ 24,251,837
Allowance for uncollectible obligation (0)
Net Capital and Service obligations $ 24,251,837
Capital Pledge Agreement
On May 1, 2007 the District entered into a Capital Pledge Agreement with Avon Station Metro District
and the Trustee whereby ASMD pledged certain revenues to assist in the repayment of District bonds to
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 24 -
NOTE H – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES – CONTINUED
the extent of the pledged revenues. As part of the issuance of the 2021 obligations, the District entered
into the Amended and Restated Capital Pledge Agreement and the Capital Pledge Agreement
(subordinate).
Intergovernmental Agreement with Mountain Vista Metropolitan District
The District has entered into an Amended and Restated Intergovernmental Agreement with Mountain
Vista Metropolitan District (Mountain Vista) dated April 28, 2006.
Under the agreement, Mountain Vista is to certify a mill levy up to 25 mills (subject to certain adjustments)
but not in excess of the debt service mill levy imposed by ASMD for financing the construction, operation,
and maintenance of public improvements that benefit both Districts. Of the 25 mills, 5 mills relate to
operations and maintenance and will be imposed indefinitely unless the improvements are dedicated to
the Town. The remaining 20 mills (subject to certain adjustments) related to CMD debt is subject to
Mountain Vista’s electoral debt authorization which expired on February 23, 2020.
The District will manage the construction and operation of the public improvements, and own, operate,
and maintain the public improvements pursuant to a long-term operations and maintenance program.
During 2022, the District received $18,070 from Mountain Vista in accordance with this agreement.
Intergovernmental Agreement with Avon Urban Renewal Authority
The District entered into an Intergovernmental Agreement with the Avon Urban Renewal Authority (the
“Authority”) and ASMD concerning incremental taxes on October 9, 2007. Under this agreement, the
Authority agreed to remit to the Districts the incremental revenues it receives as a result of ad valorem
property taxes and specific ownership taxes levied by the Districts except those upon Lot B in ASMD and
upon any increase in the number of dwelling units permitted or commercial square footage in the zoning
entitlements as of February 27, 2007. The Districts shall use any District Tax Increment Revenues remitted
for those purposes permitted by the Service Plan, including paying for public improvements within the
Districts. During 2022, the District received $590,069 in accordance with this agreement.
Facilities Operations Agreement
The District entered into a Facilities Operation Agreement with the Town of Avon (TOA) on March 14,
2006. The agreement addresses the responsibilities and funding related to the construction, operations and
maintenance for the Gondola and Public Plaza Improvements.
During 2022, the District received $266,135 from TOA for their portion of the gondola and public plaza
operation costs in accordance with the agreement.
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 25 -
NOTE H – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES – CONTINUED
Operations Agreement
The District entered into a Gondola Construction, Operations and Maintenance Agreement with the Vail
Corporation on April 28, 2006. The agreement was amended on October 24, 2007 to include the District
Plaza located at the upper gondola terminal. Under this agreement, Vail Corporation will provide
operations and maintenance for the upper plaza and gondola. The Agreement will automatically renew
each year for an initial period of 15 years absent written notice by either party of early termination. The
Amendment states that, after the initial 15 year period, the District has the option to renew the Agreement
for six (6) additional fifteen (15) year periods and the District must inform Vail in writing if it chooses to
exercise that option. The District provided such a notice in 2022 to extend the agreement for the first 15
year period. During 2022, the District incurred costs of $362,182 under this agreement.
NOTE I – RISK MANAGEMENT
The District is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets;
errors or omissions, injuries to employees, or acts of God.
The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as of
December 31, 2022. 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 the past three years.
The District pays annual premiums to the Pool for liability, property, and public officials’ 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 J – 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
Confluence Metropolitan District
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2022
- 26 -
NOTE J – TAX, SPENDING AND DEBT LIMITATIONS – CONTINUED
increases.
On November 3, 1998, a majority of the District’s electors authorized the District (1) to increase taxes
annually unlimited as to rate or amount by the imposition of an ad valorem property tax levy to be in effect
for the life of the debt, which is limited to 20 years, and (2) to collect, keep, and expend all District
revenues during 1999, and continuing thereafter without regard to limitations under TABOR.
On May 2, 2006, the majority of the District’s electors authorized the removal of the 20-year term
restriction of the tax levy.
Also, on November 3, 1998, the voters of the District authorized the issuance of $46,800,000 in debt and
approved an increase in property tax revenue to pay such debt. On May 2, 2006, voters of the District
increased this amount by $47,300,000 to a total authorized debt amount of $94,100,000.
On November 3, 2020, a majority of the District’s electors authorized the District to increase debt by
$47,800,000 and to increase taxes annually to pay such debt, and to collect, keep and expend all District
revenues during 2020 and continuing thereafter without regard to limitations under TABOR.
The District’s management believes it is in compliance with the provisions of TABOR. However, TABOR
is complex and subject to interpretation. Many of the provisions, including the interpretation of how to
calculate Fiscal Year Spending limits will require judicial interpretation.
Variance
Original Final Over
Budget Budget Actual (Under)
Revenue
Property tax 23,492$ 24,463$ 24,446$ (17)$
TIFF payments from Town of Avon 222,184 221,823 204,715 (17,108)
Service obligation payments from
Avon Station Metropolitan District 391,304 393,723 393,710 (13)
Service obligation payments from
Mountain Vista Metropolitan District 18,008 18,070 18,070 -
Town of Avon payment for gondola
and public plaza operations 334,750 332,800 266,135 (66,665)
Investment income and other 1,000 4,795 (11,981) (16,776)
Total Revenues 990,738 995,674 895,095 (100,579)
Expenditures
General government
Accounting 27,300 37,500 34,326 (3,174)
Audit 7,800 7,650 7,650 -
Directors' fees 2,250 2,250 1,399 (851)
Election 1,500 1,950 1,949 (1)
Insurance 46,400 46,400 24,713 (21,687)
Legal 25,750 25,750 23,590 (2,160)
Miscellaneous expense 250 250 210 (40)
Treasurer's fees 678 678 682 4
Landscape entry/monument 252,500 412,907 404,205 (8,702)
Transportation
Airspace lease 4,500 4,500 4,480 (20)
Utilities 30,000 27,500 26,659 (841)
Gondola insurance 42,500 41,100 41,082 (18)
Gondola operations 315,000 315,000 287,182 (27,818)
Gondola repairs and maintenance - - 2,200 2,200
Gondola management 75,000 75,000 75,000 -
Plaza operations 87,500 87,500 101,953 14,453
Contingency 10,000 10,000 - (10,000)
Total Expenditures 928,928 1,095,935 1,037,280 (58,655)
Revenues Over (Under) Expenditures 61,810 (100,261) (142,185) (41,924)
Other Financing Sources (Uses)
Transfers out (129,500) (129,500) (129,500) -
Total Other Financing Uses (129,500) (129,500) (129,500) -
Net Change in Fund Balance (67,690) (229,761) (271,685) (41,924)
Fund Balance, beginning of year 320,685 317,712 317,712 -
Fund Balance, end of year 252,995$ 87,951$ 46,027$ (41,924)$
Confluence Metropolitan District
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - GENERAL FUND
For the year ended December 31, 2022
- 27 -
Confluence Metropolitan District
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2022
- 28 -
RSI NOTE A – BUDGETARY INFORMATION
Budgets for major governmental funds are adopted on the modified accrual basis where capital
outlays are treated as expenditures and depreciation is not budgeted. The operating budget
includes proposed expenditures and the means of financing them. The Board of Directors must
approve transfers between funds or increases to a fund’s budget.
RSI NOTE B – EXPENDITURES/EXPENSES IN EXCESS OF APPROPRIATION
State Statute requires that expenditures and transfers for a fund cannot exceed the appropriations
for that fund. Appropriations for a fund may be increased provided unanticipated resources offset
them.
The budget is controlled at the departmental line level within each fund. However, the legal level
of appropriation is within the fund. In 2022, the District did not have any budget violations.
Variance
Over
Original Budget Final Budget Actual (Under)
Revenue
TIFF payments from Town of Avon 396,031$ 396,031$ 385,354$ (10,677)$
Capital obligation payments from Avon
Station Metropolitan District 815,797 850,953 848,833 (2,120)
Interest income - 7,500 15,194 7,694
Total Revenue 1,211,828 1,254,484 1,249,381 (5,103)
Expenditures
General government
Agent fees 10,000 9,413 9,073 (340)
Debt Service
Interest 775,012 775,599 775,599 -
Total Expenditures 785,012 785,012 784,672 (340)
Revenues Over (Under) Expenditures 426,816 469,472 464,709 (4,763)
Other Financing Sources (Uses)
Payoff of 2007 bonds (350,000) (350,000) (350,000) -
Total Other Financing Sources (Uses) (350,000) (350,000) (350,000) -
Net Change in Fund Balance 76,816 119,472 114,709 (4,763)
Fund Balance, beginning of year 553,634 624,445 624,445 -
Fund Balance, end of year 630,450$ 743,917$ 739,154$ (4,763)$
For the year ended December 31, 2022
IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
Confluence Metropolitan District
- 29 -
Variance
Original Final Over
Budget Budget Actual (Under)
Revenue
Interest 1,110$ 5,000$ 11,650$ 6,650$
Total Revenue 1,110 5,000 11,650 6,650
Expenditures
Transportation
Gondola expenses 100,000 100,000 - (100,000)
Total expenditures 100,000 100,000 - (100,000)
Revenues Over (Under) Expenditures (98,890) (95,000) 11,650 106,650
Other Financing Sources (Uses)
Transfers in 129,500 129,500 129,500 -
Total Other Financing Sources 129,500 129,500 129,500 -
Net Change in Fund Balance 30,610 34,500 141,150 106,650
Fund Balance, beginning of year 739,656 869,521 869,521 -
Fund Balance, end of year 770,266$ 904,021$ 1,010,671$ 106,650$
For the year ended December 31, 2022
BUDGET AND ACTUAL - GONDOLA/CAPITAL RESERVE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
Confluence Metropolitan District
- 30 -
Year ending
December 31 Principal Interest Total
2023 365,000 769,622 1,134,622
2024 395,000 764,001 1,159,001
2025 550,000 757,324 1,307,324
2026 590,000 742,320 1,332,320
2027 610,000 720,030 1,330,030
2028 660,000 697,148 1,357,148
2029 685,000 672,405 1,357,405
2030 740,000 646,795 1,386,795
2031 770,000 618,795 1,388,795
2032 825,000 589,653 1,414,653
2033 855,000 558,375 1,413,375
2034 915,000 525,828 1,440,828
2035 950,000 490,870 1,440,870
2036 525,000 761,200 1,286,200
2037 540,000 732,325 1,272,325
2038 610,000 702,625 1,312,625
2039 635,000 669,075 1,304,075
2040 710,000 634,150 1,344,150
2041 730,000 595,100 1,325,100
2042 815,000 554,950 1,369,950
2043 845,000 510,125 1,355,125
2044 935,000 463,650 1,398,650
2045 970,000 412,225 1,382,225
2046 1,065,000 358,875 1,423,875
2047 1,110,000 300,300 1,410,300
2048 1,210,000 239,250 1,449,250
2049 1,265,000 172,700 1,437,700
2050 1,875,000 103,125 1,978,125
22,750,000$ 15,762,841$ 38,512,841$
June 10, 2021, Principal Due December 1
Interest at 1.54% to 5.00% Due June 1 and December 1
Confluence Metropolitan District
SCHEDULE OF BOND OBLIGATIONS AND INTEREST
December 31, 2022
Limited Tax Supported Revenue Refunding Loan, Series 2021A1
Subordinate Liminted Tax Supported Revenue Refunding Bonds, Series 2021B
REQUIREMENTS TO MATURITY
Limited Tax Supoorted Revenue Refunding Loan, Series 2021A2
- 31 -