2018 Consolidated Annual ReportCONFLUENCE METROPOLITAN DISTRICT AVON STATION METROPOLITAN DISTRICT
2018 CONSOLIDATED ANNUAL REPORT
Pursuant to the Amended and Restated Consolidated Service Plan for Confluence Metropolitan District and Avon Station Metropolitan District (the “Districts”), the Districts are
required to provide an annual report to the Town of Avon (the “Town”). For the year ending December 31, 2018, the Districts make the following report:
A.Boundary changes made or proposed to the Districts’ boundaries as of December 31 of the prior year.
No boundary changes were made or proposed in 2018.
B.Intergovernmental Agreements with other governmental bodies entered into or
proposed as of December 31 of the prior year.
There were no intergovernmental agreements entered into or proposed in 2018.
C.A list of all facilities and improvements constructed by the Districts that have been dedicated to and accepted by the Town as of December 31 of the prior year.
No facilities or improvements were dedicated to the Town in 2018.
D.The assessed valuation of the Districts for the current year.
The assessed valuation of each district is as follows:Confluence Metropolitan District: $40
Avon Station Metropolitan District: $18,480,090
E.Current year budget including a description of the Public Improvements to be constructed in such year.
Copies of the Districts’ 2019 budgets are attached hereto as Exhibit A.
F.Audits of the Districts’ financial statements, for the year ending December 31, of the prior year.
The 2018 annual audits for Confluence Metropolitan District and Avon Station Metropolitan District are in process and the Audit Reports will be furnished following
approval.
G.Notice of any uncured events of default by the Districts, which continue beyond a ninety (90) day period, under any debt instrument.
Confluence Metro District was unable to make its debt service principal payment on
December 1, 2018 and that default is continuing. The District does not have the financial
ability to cure the default because the bonds were issued as limited tax bonds and the assessed value and property taxes are insufficient to make the full debt service payment at this time.
EXHIBIT A 2019 Budgets
AVON STATION METROPOLITAN DISTRICT
2019 BUDGET MESSAGE
Avon Station Metropolitan District is a quasi-municipal corporation organized and operated pursuant to provisions set forth in the Colorado Special District Act. The District was
established to supply the necessary services of parking areas and/or structures, transportation, water and wastewater mainlines, streets, bridges and other improvements needed for the area.
The District has no employees and all operations and administrative functions are contracted.
The following budget is prepared on the modified accrual basis of accounting, which is consistent with the basis of accounting used in presenting the District's financial statements.
2019 BUDGET STRATEGY
Avon Station Metropolitan District joined with Confluence Metropolitan District in adopting an Amended and Restated Consolidated Service Plan in March 2006. Under this consolidated service plan, Confluence will be the “service district” and Avon Station will be the “financing district.” As such, Confluence Metropolitan District will be responsible for managing the
construction and operation of facilities and improvements needed for the Avon Station area and Avon Station Metropolitan District will be responsible for providing the funding and tax bases needed to support the financing plan for capital improvements.
Avon Station Metropolitan District anticipates utilizing the property taxes it collects to pay for a
portion of its obligations under the Intergovernmental Agreement (“IGA”) with Confluence Metropolitan District.
AVON STATION METROPOLITAN DISTRICTSTATEMENT OF NET POSITION Printed: 03-Dec-18September 30, 2018GENERAL DEBT LONG TERMFUND SERVICEDEBTTOTALASSETS First Bank 4,515 4,515 Colotrust 37,820 70,090107,909 Property Tax Receivable 5,418 5,418 Accounts Receivable 0 0 0 Prepaid Insurance 0 0TOTAL ASSETS 42,335 75,508 0 117,842LIABILITIES Accounts Payable 61 0 61 Deferred Property Tax 5,418 5,418 Capital & Service Oblig Payable to CFMD 27,894,837 27,894,8370TOTAL LIABILITIES 61 5,418 27,894,837 27,900,316NET POSITION Net of Capital and Service Obligation (27,894,837) (27,894,837) Fund Balance 42,273 70,090 112,363TOTAL NET POSITION 42,273 70,090 (27,894,837) (27,782,474)TOTAL LIABILITIES ANDNET POSITION 42,334 75,508 0 117,842No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = PAGE 1
AVON STATION METROPOLITAN DISTRICT Printed: 03-Dec-18STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual BasisGENERAL FUND Cal YrCal Yr9 Months 9 MonthsCal Yr2018 2018 Ended EndedVariance 20192017 Adopted Forecast 09/30/18 09/30/18 Favorable AdoptedBUDGETAuditedBudgetBudgetActualBudget(Unfav)Budget ASSUMPTIONSREVENUES Confluence Expense Reimbursement0 Transfer S.O. Tax from Debt Serv 0 0 0 0 0 0 50,942 SO tax & int TOTAL REVENUES 0 0 0 0 0 0 50,942EXPENDITURES Insurance 2,493 2,500 2,500 2,496 2,500 4 2,700 Based on Prior Yrs Directors Fees & Payroll Taxes 861 2,250 2,250 431 550 119 2,250 (4mtgs 5 dir) Elections 0 1,500 25 21 1,500 1,479 0 Audit 6,058 6,200 5,000 5,000 6,200 1,200 5,500 Office Overhead 24 500 500 16 90 74 500TOTAL EXPENDITURES 9,436 12,950 10,275 7,963 10,840 2,877 10,950REVENUE OVER (UNDER) EXPEND. (9,436) (12,950) (10,275) (7,963) (10,840) 2,877 39,992FUND BALANCE - BEGINNING 59,672 49,412 50,236 50,236 49,412 (824) 39,961FUND BALANCE - ENDING 50,236 36,462 39,961 42,273 38,572 3,701 79,953No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = = <> PAGE 2
AVON STATION METROPOLITAN DISTRICT Printed: 03-Dec-18STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual BasisDEBT SERVICE FUND Cal YrCal Yr9 Months 9 MonthsCal Yr2018 2018 Ended EndedVariance 20192017 Adopted Forecast 09/30/18 09/30/18 Favorable Adopted BUDGETAuditedBudgetBudgetActualBudget(Unfav)Budget ASSUMPTIONSAssessed ValuationResidential Assessment RateAvon Station - NET AV 14,337,080 12,696,830 12,696,830 12,695,090 Nov 18 Final AV Avon Station - TIF 5,521,510 5,888,730 5,888,730 5,785,000 Nov 18 Final AV Gross AV 19,858,590 18,585,560 18,585,560 18,480,090Percent change -0.8% -6.4% -6.4% -0.6% Percent changeServices/Operations Mill Levy Rate23 23.000 23.000 23.000Serv/Ops Mill levyDebt Service Mill Levy Rate (gallagherized)40 42.585 42.585 42.596Debt Serv Mill levy 63 65.58565.58565.596REVENUES Property Taxes - 23 Mills Serv IGA 903,236 292,027 292,027 288,358 289,107 (749) 291,987 Property Taxes - Pledged DS 540,695 540,695 533,901 535,288 (1,387) 540,760 Specific Ownership Taxes 64,362 60,947 60,947 40,105 40,631 (526) 60,611 5% of Prop tax Interest Income 4,185 4,164 2,600 1,732 3,123 (1,391) 2,920 0.50% of prop taxTOTAL REVENUES 971,783 897,832 896,268 864,096 868,149 (4,052) 896,278EXPENDITURES Treasurer's Fees 27,169 24,982 24,982 24,606 24,732 126 24,982 3% of Prop Tax Transfer Prop Tax - IGA Serv 319,834 283,266 283,266 275,737 280,434 4,697 283,227 23 Mills to CF Ops Transfer Prop Tax- IGA D/S 556,233 524,474 524,474 510,533 519,229 8,696 524,537 42.596 Mills to CF DS Transfer SO Tax - IGA D/S 40,865 36,778 36,778 19,015 24,519 5,503 39,359TOTAL EXPENDITURES 944,101 869,500 869,500 829,891 848,913 19,022 872,106REVENUE OVER (UNDER) EXPEND. 27,682 28,333 26,769 34,205 19,235 14,970 24,172OTHER FINANCING SOURCES/(USES) Xfer Net S.O. tax & Int to General Fund 0 0 0 0 0 0 (50,942) SO tax, int - treas fee TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 0 (50,942)FUND BALANCE - BEGINNING 8,202 36,495 35,885 35,885 36,495 (610) 62,653FUND BALANCE - ENDING 35,885 64,828 62,653 70,090 55,730 14,360 35,883= = = = = No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.PAGE 3
CONFLUENCE METROPOLITAN DISTRICT
2019 BUDGET MESSAGE
Confluence Metropolitan District is a quasi-municipal corporation organized and operated
pursuant to provisions set forth in the Colorado Special District Act. The District was
established to supply the necessary services of parking areas and/or structures, transportation, water and wastewater mainlines, streets, bridges and other improvements needed for the area.
The District has no employees and all operations and administrative functions are contracted.
The following budget is prepared on the modified accrual basis of accounting, which is consistent with the basis of accounting used in presenting the District's financial statements.
2019 BUDGET STRATEGY
Confluence Metropolitan District joined with Avon Station Metropolitan District in adopting an Amended and Restated Consolidated Service Plan in March 2006. Confluence Metropolitan District is the “service” district in a dual district structure whereby its primary sources of
revenues are contract fees received from the companion “financing” district, Avon Station
Metropolitan District, pursuant to an IGA. The District also receives contract fees from the Mountain Vista Metropolitan District pursuant to an IGA. Confluence Metropolitan District is responsible for managing the operation and maintenance of facilities and improvements within the Districts.
In 2007 the District issued $24,665,000 Series 2007 Tax Supported Revenue Bonds for use in financing improvements for the benefit of the property owners and residents of the District. The District will use revenues provided by Avon Station and Mountain Vista Metropolitan Districts pursuant to the IGA’s to fund a portion of the debt service payments for the bonds and to finance
the cost of providing the services. The remaining fund balance in the Bond Reserve fund that
was established in conjunction with the issuance of the 2007 bonds was used for a portion of the debt service payments due in 2018. The District does not expect to have sufficient revenues and reserve fund balance to pay the full debt service due for 2019.
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RESOLUTIONS OF CONFLUENCE METROPOLITAN DISTRICT
TO ADOPT 2019 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE CONFLUENCE METROPOLITAN DISTRICT,
COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF
JANUARY 2019 AND ENDING ON THE LAST DAY OF DECEMBER 2019. WHEREAS, the Board of Directors (the “Board”) of the Confluence Metropolitan District (the “District”) has appointed a budget committee to prepare and submit a proposed 2019 budget at
the proper time; and
WHEAREAS, such committee has submitted a proposed budget to this governing body at the proper time, for its consideration, and;
WHEREAS, upon due and proper notice, published or posted in accordance with the law, said
proposed budget was open for inspection by the public at a designated place, and a public hearing was held on October 23, 2018 interested taxpayers were given the opportunity to file or register any objections to said proposed budget; and;
WHEREAS, whatever increases may have been made in the expenditures, like increases were
added to the revenues or planned to be expended from reserves/fund balances so that the budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District:
Section 1. That the budget as submitted, amended, and summarized by fund, hereby is approved and adopted as the budget of the District for the year stated above. Section 2. That the budget hereby approved and adopted shall be certified by any officer of
the District or the District Administrator of the District and made a part of the
public records of the District.
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CONFLUENCE METROPOLITAN DISTRICT Printed: 22-Jan-19STATEMENT OF NET POSITION September 30, 2018DEBT GONDOLAFIXEDGENERAL SERVICE RESERVE ASSETSFUND FUNDFUND & LT DEBTASSETS Cash in Checking & Savings 384,429 178,484 569,867 Bond - Pledged Revenue Account 350,436 Bond- Interest Account0 Bond-Reserve Account 489,091 Bond - Sinking Fund Account 0 Bond - Surplus Account 1 Bond - Guaranty Account 0 Accounts Receivable 104,358 14,417 Capital Assets 12,277,956 Accumulated Depreciation (4,310,433) Prepaid Insurance 0 Capital/Serv Obligation from ASMD608,105TOTAL ASSETS 488,7871,032,427 569,867 8,575,628LIABILITIES Accounts Payable 72,945 0 0 Accrued Interest Payable1,542,873 Developer Advance Payable991,101 Developer Guaranty Payable 5,000,000 Bonds Payable 21,875,000TOTAL LIABILITIES 72,945 0 0 29,408,974NET POSITION Net Investment in Capital Assets (21,441,451) Net of Capital & Service Obligation 608,105 Restricted Net Assets 1,032,428 Assigned Net Assets569,867 Unrestricted Net Assets 415,842TOTAL NET POSITION 415,842 1,032,428 569,867 (20,833,346)TOTAL LIABILITIES ANDNET POSITION 488,787 1,032,428 569,867 8,575,628No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = PAGE 1
CONFLUENCE METROPOLITAN DISTRICT Printed: 22-Jan-19STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual BasisGENERAL FUND Cal Yr9 Months 9 MonthsCal Yr2018 Cal YrEnded EndedVariance 20192017 Adopted 2018 09/30/18 09/30/18 Favorable Adopted BUDGETAudited BudgetAmendedActualBudget(Unfav)Budget ASSUMPTIONSREVENUES TOA Gondola Ops IGA Contrib 226,471 229,050 227,625 168,872 176,050 (7,178) 242,913 50% of gond ops TOA Public Plaza Ops IGA Contrib 35,794 40,078 40,078 31,098 30,000 1,098 41,350 50% of a portion of plaza ops Trnsfr Prop Taxes - ASMD - 23 mills 319,834 283,266 283,266 279,729 280,434 (705) 283,227 23 Mills Trnsfr Prop Taxes - AS TOA URA 23 mills 116,545 131,378 131,378 134,603 131,378 3,225 129,063 23 Mills Trnsfr Prop Taxes - Mtn Vista 5 Mills 15,844 14,857 14,857 14,73714,857 (120) 14,955 5 Mills Misc Income 368 400 400 199 200 (1) HolyX equity refund Interest 4,603 3,000 8,500 6,134 2,250 3,884 2,926TOTAL REVENUES 719,459 702,029 706,104 635,371 635,169 203 714,435EXPENDITURESGeneral & Admin Insurance 38,829 42,000 42,000 39,371 42,000 2,629 43,260 Pool & Travelers BMProp Sep Directors Fees & Payroll Taxes 861 2,250 1,000 431 550 119 0 4 mtgs 5 directors Accounting & Administration 20,482 20,000 20,000 15,746 15,000 (746) 20,600 Based on Prior Yrs Audit 7,673 7,700 7,700 7,000 7,700 700 7,935 Elections 0 1,500 1,365 1,363 1,500 137 0 Office Overhead 171 200 500 286 200 (86) 250 Legal 15,849 20,000 20,000 7,738 15,000 7,262 20,600 Based on Prior YrsOperations: Gondola Ops & Maint 289,424 285,000 285,000 225,283 225,000 (283)312,100 based on VR budget Gondola Utilities 23,403 30,000 30,000 19,177 22,100 2,923 31,000 Gondola Stop Gap Insurance 39,195 42,000 39,150 39,140 42,000 2,860 41,500 TCW Admiral Sept Gondola Mgmt - VR 75,000 75,000 75,000 56,250 56,250 0 75,000 based on VR budget Gondola Reserve- Xfer 22,000 22,000 22,000 0 0 0 22,000 CDOT Lease - thru 2037 3,921 4,100 4,100 0 0 0 4,225 per agreement Public Plaza & Restrooms O&M -TOA cost sh71,317 76,000 76,000 49,333 57,000 7,667 65,000 based on EW budget Plaza Reserve Xfer 14,500 14,500 14,500 0 0 0 14,500 RR Fence Staining 015,000000 015,000every other year District Landscape, Entry Monument, O&M 40,067 45,000 52,000 45,231 45,000 (231) 60,000Contingency 0 10,000 10,000 0 0 0 10,000TOTAL EXPENDITURES 662,692 712,250 700,315 506,349 529,300 22,951 742,970REVENUE OVER (UNDER) EXPEND. 56,767 (10,221) 5,789 129,023 105,869 23,154 (28,535)OTHER SOURCES AND (USES) Transfer (to) from Debt Service Fund 00000 0TOTAL OTHER SOURCES AND USES 00000 0FUND BALANCE - BEGINNING 230,053 271,398 286,820 286,820 271,398 15,422 292,609FUND BALANCE - ENDING 286,820 261,177 292,609 415,842 377,267 38,576 264,074No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = = = PAGE 2
CONFLUENCE METROPOLITAN DISTRICT Printed: 22-Jan-19STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual BasisGONDOLA/CAPITAL RESERVE FUND Cal Yr9 Months 9 MonthsCal Yr2018 Cal YrEnded EndedVariance 20192017 Adopted 2018 09/30/18 09/30/18 Favorable Adopted BUDGETAudited BudgetBudgetActualBudget(Unfav)Forecast ASSUMPTIONSREVENUES Xfer from General Fund - Gondola 22,000 22,000 22,000 0 0 0 22,000 Xfer from General Fund - Plaza 14,500 14,500 14,500 0 0 0 14,500 Interest Income 6,844 5,000 12,500 9,338 3,750 5,588 6,095TOTAL REVENUES 43,344 41,500 49,000 9,338 3,750 5,588 42,595EXPENDITURESGondolaAgamatic 108 Grip rep (2020-23) Cabin Wheels 0 0 0 0Gearbox Rebuild (2024-27)Bullwheel Bearings (2021-22)Rope Replacement Materials (4,200 Ft)Rope Replacement Contractor (2025-30)Drive Replacement - Drive (2021-23)Drive Replacement - Commisioning (2021-23) Terminal Painting 10,000 0 0 0PlazaUpper Terminal PlazaPublic Plaza 30,000 0 0 0 7,210 Painting Cedar siding OtherEntry MonumentsFenceGondola Maintenance FacilityTOTAL EXPENDITURES 0 40,000000 07,210REVENUE OVER (UNDER) EXPEND. 43,344 1,500 49,000 9,338 3,750 5,588 35,385FUND BALANCE - BEGINNING 517,185 559,685 560,529 560,529 559,685 844 609,529FUND BALANCE - ENDING 560,529 561,185 609,529 569,867 563,435 6,432 644,914No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = = = Components of Fund Balance Gondola Reserve 490,538 512,538 512,538 490,538 534,538 Plaza Reserve 58,000 42,500 72,500 58,000 79,790 Unrestricted 11,991 6,147 24,491 21,329 30,586560,529 561,185 609,529 569,867 644,914PAGE 3
CONFLUENCE METROPOLITAN DISTRICTPrinted: 22-Jan-19STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATEDModified Accrual BasisDEBT SERVICE FUNDCal Yr9 Months 9 MonthsCal Yr2018 Cal YrEnded EndedVariance 20192017 Adopted 2018 09/30/18 09/30/18 Favorable Adopted BUDGETAudited BudgetAmendedActualBudget(Unfav)Forecast ASSUMPTIONSAssessed ValuationMountain Vista - information purposes only3,169,950 2,971,450 2,971,4502,991,070Nov 2018 AV Confluence30 30 3030Nov 2018 AV Confluence - TIF10 10 1010Nov 2018 AV Avon Station 14,607,570 12,696,830 12,696,83012,695,090Nov 2018 AV Avon Station - TIF 5,382,160 5,888,730 5,888,7305,785,000Nov 2018 AV REVENUES Trnsfr Prop Taxes - ASMD IGA 556,233 524,474 524,474 517,924 519,229 (1,304) 524,537 42.596 mills of 65.596 mills Trnsfr Prop Taxes - AS TOA URA 202,687 243,248 249,220 249,220 243,248 5,972 243,311 Trnsfr Prop Taxes - ASMD IGA - SO Tax 40,865 36,778 36,778 26,040 24,519 1,522 39,359 Trnsfr Prop Taxes - Mtn Vista IGA63,374 62,861 62,861 62,351 62,861 (510) 63,270 21.153 mills Interest Income16,4080 15,000 9,1230 9,123 2,000TOTAL REVENUES879,566 867,361 888,333 864,659 849,857 14,803 872,478EXPENDITURES Bond Interest - 2007 Bonds1,218,983 1,187,483 1,187,483 593,741 593,7420 1,187,483 from DS schedule Bond Principal - 2007 Bonds600,000 420,546000 00 Bond Paying Agent Fees3,850 3,850 4,235 4,235 3,850 (385) 4,250 Contingency 25,000 25,00025,000 to avoid budget amendment TOTAL EXPENDITURES1,822,833 1,636,879 1,216,718 597,976 597,592 (385) 1,216,733REVENUE OVER (UNDER) EXPEND. (943,266) (769,518) (328,385) 266,683 252,265 14,418 (344,255)OTHER FINANCING SOURCES and (USES) Xfer to General fund - Guaranty Draw 00000 00 TOTAL OTHER FINANCING SOURCES00000 00FUND BALANCE - BEGINNING1,709,011 744,518 765,745 765,745 744,518 21,227 462,360Reverse contingency 25,000 25,00025,000FUND BALANCE - ENDING765,7450 462,360 1,032,428 996,783 35,645 143,105No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = = 2007 Bond Principal Balance 21,875,000 21,454,4540Components of Fund Balance: Debt Service Reserve Fund 482,6600 445,768 489,091126,513Guaranty Fund Reserve 0000Surplus Fund 0001Restricted for future debt service 283,0840 16,592 543,33616,592Total 765,7450 462,360 1,032,428143,105= = (Note: Order of use Surplus, Guaranty, Reserve)PAGE 4715,000760,000 Principal due1,187,4831,148,873 Interest due