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Home My WebLink About2018 Annual ReportSOLARIS METROPOLITAN DISTRICT NOS. 1-3 2018 CONSOLIDATED ANNUAL REPORT Pursuant to the Consolidated Service Plan for Solaris Metropolitan District Nos. 1, 2 and 3 (the “Districts”), the Districts are responsible for submitting an annual report to the Town Manager of the Town of Vail (the “Town”) each year. For the year ending December 31, 2018, the Districts make the following report: 1. Boundary changes made to the Districts’ boundaries as of December 31 of the prior year. There were no boundary changes made to the Districts’ boundaries during the prior year. 2. Intergovernmental Agreements with other governmental entities entered into as of December 31 of the prior year. There were no intergovernmental agreements with other governmental entities entered into during the prior year. 3. 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 constructed by the Districts were dedicated to the Town in 2018. 4. The assessed valuation of the Districts for the current year. The assessed valuation of each district is as follows: District No. 1 - $10,910 District No. 2 - $31,544,280 District No. 3 - $8,025,400 5. 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. 6. Audit of the Districts financial statements, for the year ending December 31 of the previous year, prepared in accordance with generally accepted accounting principles or audit exemption, if applicable. The Districts’ 2018 Audits are underway. Copies of the 2018 Audits will be provided in a supplemental report once received. 7. Notice of any uncured events of default by the Districts, which continue beyond a ninety (90) day period, under any Debt instrument. There were not uncured events of default by the Districts which continued beyond 90d days under any debt instrument. EXHIBIT A 2019 Budgets SOLARIS METROPOLITAN DISTRICT NO. 1 __________________________________________ Administrative Management Provided By Marchetti & Weaver, LLC 28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) 926-6060; Fax (970) 926-6040 Filed electronically: dlg-filing@state.co.us LGID#: 65739 December 31, 2018 Division of Local Government 1313 Sherman Street, Room 521 Denver, CO 80203 RE: Solaris Metropolitan District No. 1 Attached is the 2019 Budget for the Solaris Metropolitan District No. 1 in Eagle County, Colorado, submitted pursuant to Section 29-1-116, C.R.S. This Budget was adopted on November 16, 2018. If there are any questions on the budget, please contact Mr. Kenneth J. Marchetti, telephone number 970-926-6060. The mill levy certified to the County Commissioners of Eagle County is 0.000 mills for all general operating purposes, subject to statutory and/or TABOR limitations; 0.000 mills for general obligation debt; 0.000 mills for contractual obligations; 0.000 for refund/abatement; and 0.000 mills for Temporary Tax Credit/Mill Levy Reduction. Based on a net assessed valuation of $10,910, the total property tax revenue is $0. A copy of the certification of mill levies sent to the County Commissioners for Eagle County is enclosed. I hereby certify that the enclosed is a true and accurate copy of the budget and certification of tax levies to the Board of County Commissioners of Eagle County, Colorado. Sincerely, District Administrator Enclosure(s) SOLARIS METROPOLITAN DISTRICT NO. 1 2019 BUDGET MESSAGE Solaris Metropolitan District No. 1 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 public improvements and related operation and maintenance services as such power and authority is described in the Special District Act, and other applicable statutes. 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 The District was formed in late 2006. The District has joined with Solaris Metropolitan District No. 2 and Solaris Metropolitan District No. 3 in adopting a consolidated service plan. Under this consolidated service plan, the District is the “service district” and Solaris Metropolitan District No. 2 and No. 3 are the “financing districts.” As such, the District is responsible for managing the construction and operation of facilities and improvements needed for the Solaris Metropolitan District No. 2 and No. 3 areas. For this reason, the District issued $30,560,000 property tax revenue variable rate bonds on March 25, 2008 to be repaid with revenues pledged by Solaris Metropolitan District No. 2 and No. 3. During 2013 Solaris Metropolitan District No. 2 issued bonds and transferred the proceeds to District No. 1 and the 2008 bonds were paid off and the District has no bonds currently outstanding. Operating expenses are funded pursuant to an Operating Agreement between Solaris Metropolitan District Nos. 1, 2 and 3. District No. 1 performs the operations and the operating expenses are funded through property tax revenues collected by the “financing” districts (No. 2 and No. 3) and paid to District No. 1. Additionally, the Developer in the District advances funds to District No. 1 for operations and then such advances are repaid as the property tax revenues are received. Page 1 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 1 TO ADOPT 2019 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE SOLARIS METROPOLITAN DISTRICT NO. 1, 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 of the Solaris Metropolitan District No. 1 (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 November 16, 2018 and 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 or the District Administrator of the District and made a part of the public records of the District. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Page 2 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 1 (CONTINUED) TO SET MILL LEVIES A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2018, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE SOLARIS METROPOLITAN DISTRICT NO. 1, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2019 BUDGET YEAR. WHEREAS, the Board of Directors of the Solaris Metropolitan District No. 1 (the “District”), has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on November 16, 2018 and; WHEREAS, the amount of money necessary to balance the budget for general operating expenses and capital expenditure purposes from property tax revenue is $0.00 and; WHEREAS, the Board of Directors of the District finds that it is required to temporarily lower the general operating mill levy to render a refund for $0.00, and; WHEREAS, the amount of money necessary to balance the budget for capital expenditure purposes from property tax revenue approved by voters or at public hearing is $ 0.00, and; WHEREAS, the amount of money necessary to balance the budget for contractual obligations from property tax revenue as approved by voters is $ 0.00 and; WHEREAS, the amount of money necessary to balance the budget for voter approved bonds and interest is $0.00, and; WHEREAS, the 2018 net valuation for assessment for the District, as certified by the County Assessor is $10,910 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District: Section 1. That for the purposes of meeting all general operating expenses of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 2. That for the purposes of rendering a refund to its constituents during budget year 2019 there is hereby levied a temporary tax credit/mill levy reduction of 0.000 mills. Section 3. That, for the purpose of meeting all capital expenditures of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Page 3 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 1 (CONTINUED) TO SET MILL LEVIES (CONTINUED) Section 4. That for the purpose of meeting all payments for contractual obligations of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 5 That for the purpose of meeting all payments for bonds and interest of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 6. That any officer of the District or the District Administrator is hereby authorized and directed to either immediately certify to the Board of County Commissioners of Eagle County, Colorado, the mill levies for the District as hereinabove determined and set, or be authorized and directed to certify to the Board of County Commissioners of Eagle County, Colorado, the mill levies for the District as hereinabove determined and set based upon the final (December) certification of valuation from the County Assessor. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Page 4 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 1 (CONTINUED) TO APPROPRIATE SUMS OF MONEY (PURSUANT TO SECTION 29-1-108, C.R.S.) A RESOLUTION APPROPRIATING SUMS OF MONEY TO THE VARIOUS FUNDS AND SPENDING AGENCIES, IN THE AMOUNT AND FOR THE PURPOSE AS SET FORTH BELOW, FOR THE SOLARIS METROPOLITAN DISTRICT NO. 1, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2019 BUDGET YEAR. WHEREAS, the Board of Directors of the Solaris Metropolitan District No. 1 (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on November 16, 2018, and; WHEREAS, the Board of Directors has made provision therein for revenues in an amount equal or greater to the total proposed expenditures as set forth in said budget, and; WHEREAS, it is not only required by law, but also necessary to appropriate the revenues and reserves or fund balances provided in the budget to and for the purposes described below, thereby establishing a limitation on expenditures for the operations of the District. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT: Section 1. That the following sums are hereby appropriated from the revenues of each fund, to each fund, for the purposes stated: GENERAL FUND: General and Admin Expenditures $ 90,095 Operations Expenditures $649,515 Developer Repayment $600,835 Advance Note Interest $118,698 Total General Fund $1,459,143 (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) 121 County Tax entity code DOLA LGID/SID 65739 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Solaris Metropolitan District #1 the Board of Directors of the Solaris Metropolitan District #1 $10,910 $10,910 Submitted:12/7/2018 for budget/fiscal year 2019 . (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 0.000 mills -$ 2. (0.000) mills -$ SUBTOTAL FOR GENERAL OPERATING: (0.000)mills -$ 3.General Obligation Bonds and InterestJ 0.000 mills -$ 4.Contractual ObligationsK 0.000 mills -$ 5.Capital ExpendituresL 0.000 mills -$ 6.Refunds/AbatementsM 0.000 mills -$ 7.OtherN (specify): 0.000 mills -$ 0.000 mills -$ TOTAL:[]0.000 mills -$ Daytime phone: (970) 926-6060 x8 Signed: Title: District Accountant (local government)C Include one copy of this tax entity's completed form when filing the local government's budget by January 31st, per 29-1-113 C.R.S. with the Division of Local Government (DLG), Room 521, 1313 Sherman Street, Denver, Colorado 80203. Questions? Call DLG (303) 864-7720. 1 If the taxing entity's boundaries include more than one county, you must certify the levies to each county. Use a separate form for each county and certify the same levies uniformly to each county per Article X, Section 3 of the Colorado Constitution. 2 Levies must be rounded to three decimal places and revenue must be calculated from the total NET assessed valuation (Line 4 of Form DLG57 on the County Assessor's FINAL certification of valuation). USE VALUE FROM FINAL CERTIFICATION OF VALUATION PROVIDED BY ASSESSOR NO LATER THAN DECEMBER 10 <Minus> Temporary General Property Tax Credit/ Temporary Mill Levy Rate ReductionI (GrossD assessed valuation, Line 2 of the Certification of Valuation From DLG 57 E) (NETG assessed valuation, Line 4 of the Certification of Valuation Form DLG 57) Hereby officially certifies the following mills to be levied against the taxing entity's GROSS assessed valuation of: Contact person: (print) Ken Marchetti Sum of General Operating Subtotal and Lines 3 to 7 Note: If the assessor certified a NET assessed valuation (AV) different than the GROSS AV due to a Tax Increment Financing (TIF) AreaF the tax levies must be calculated using the NET AV. The taxing entity's total property tax revenue will be derived from the mill levy multiplied against the NET assessed valuation of: CERTIFICATION OF TAX LEVIES for NON-SCHOOL Governments (taxing entity)A (governing body)B Form DLG 70 (rev 9/15)Page 1 of 4 SOLARIS METROPOLITAN DISTRICT #1 Statement of Net Position 01/08/19 01/08/19 September 30, 2018 OPER-DEBT CAPITAL GENERAL ATIONS SEQVICE ASSETS Assets FUND FUND FUND & LT DEBT TOTAL Csafe 261,396 261,396 Alpine Bank / Cash Drawer (4,445)(4,445) Accounts Receivable 0 (1,739)(1,739) Accounts Receivable - SMD #2 0 0 Accounts Receivable - SMD #3 0 0 Prepaid Insurance / Security Deposits 0 6,311 6,311 Capital Assets 27,275,486 27,275,486 Accum Depreciation/Amort (4,449,071)(4,449,071) Capital & Service Obligations Receivable 1,044,608 1,044,608 Total Assets 261,396 127 0 23,871,023 24,132,546 Liabilities Accounts Payable 9,343 (8,098)1,246 Develop Advance - Note Payable 1,088,182 1,088,182 Develop Advance - Note Payable Interest 6,440 6,440 Develop Advance - Note Payable Ops 0 0 Develop Advance - Note Payable Ops Interest 0 0 Total Liabilities 9,343 (8,098)0 1,094,621 1,095,867 Deferred Inflows Deferred Property Tax Revenue 0 0 Net Position Investment in Capital Assets, Net 22,826,415 22,826,415 Net Assets - Capital/Service Oblig 1,044,608 1,044,608 Net of related Debt (1,094,621)(1,094,621) Net of Developer Advance for Operations 0 Unrestricted Net Assets 252,053 8,225 0 0 260,277 Total Net Position 252,053 8,225 0 22,776,402 23,036,679 Total Liabilities, Deferred Inflows and Net Position 261,396 127 0 23,871,023 24,132,546 0 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = PAGE 1 SOLARIS METROPOLITAN DISTRICT #1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Printed: 01/08/19 BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual Basis GENERAL FUND Cal Yr Cal Yr 9 Months 9 Months Cal Yr 2017 2018 Variance Cal Yr Ended Ended Variance 2019 Audited Amended Favorable 2018 09/30/18 09/30/18 Favorable Adopted Actual Budget (Unfav)Forecast Actual Budget (Unfav)Budget Assessed Valuation Solaris Metro Dist # 1 8,720 10,910 10,910 10,910 Final AV Solaris Metro Dist # 2 30,609,830 31,562,590 31,562,590 31,544,280 Final AV Allowance for Protests/Abatements Solaris Metro Dist # 3 5,969,430 8,103,340 8,103,340 8,025,400 Final AV Residential Service Obligation Mill Levy 10.000 10.000 10.000 10.000 Residential Advance Note Mill Levy 3.000 3.000 3.000 3.000 Commercial Service Obligation Mill Levy 10.000 10.000 10.000 10.000 Commercial Advance Note Mill Levy 3.000 3.000 3.000 3.000 REVENUES Developer Cost Recovery Advance 0 0 0 0 0 0 SMD No. 2 Operations Costs Payment 407,338 415,435 0 415,435 409,548 315,626 93,922 315,443 SMD No. 2 Advance Note Payment 0 0 0 94,688 (94,688)94,633 SMD No. 3 Operations Costs Payment 79,334 106,504 0 106,504 105,736 81,033 24,703 80,254 SMD No. 3 Advance Note Payment 0 0 0 24,310 (24,310)24,076 Ice Skate Rental Income 224,434 150,000 75,000 225,000 146,629 112,410 34,219 225,000 Per Matt Skate Shop Rent Income 23,478 20,000 0 20,000 13,911 15,000 (1,089)20,000 Per Matt Special Event Income 41,168 50,000 0 50,000 37,750 37,500 250 50,000 Per Matt Miscellaneous Income 0 0 0 0 0 Interest Income 3,401 2,500 0 2,500 2,331 0 2,331 233 Total Revenues 779,153 744,439 75,000 819,439 715,905 680,567 35,338 809,639 = GENERAL & ADMIN EXPENDITURES Accounting 33,284 26,500 0 26,500 20,394 19,500 (894)27,295 2018 Forecast Audit 8,800 8,950 0 8,950 8,950 8,950 0 9,100 Per Engagement Elections 0 1,505 0 1,505 1,505 1,100 (405)0 Bd mbr election General Engineering 0 0 0 0 0 0 0 0 Insurance 10,332 11,531 0 11,531 11,531 12,000 469 12,000 2018 Forecast Legal - General Counsel 10,106 10,500 0 10,500 5,172 11,250 6,078 15,000 2018 Forecast Miscellaneous 1,248 750 0 750 301 563 261 750 Contingency 0 0 0 0 0 0 0 10,000 Contributions to SMD 2 and 3 21,500 16,825 0 16,825 16,125 12,619 (3,506)15,950 2018 Forecast TOTAL G&A EXPENDITURES 85,269 76,561 0 76,561 63,978 65,981 2,004 90,095 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. PAGE 2 SOLARIS METROPOLITAN DISTRICT #1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Printed: 01/08/19 BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual Basis GENERAL FUND - (CONTINUED) Cal Yr Cal Yr 9 Months 9 Months Cal Yr 2017 2018 Variance Cal Yr Ended Ended Variance 2019 Audited Amended Favorable 2018 09/30/18 09/30/18 Favorable Adopted Actual Budget (Unfav)Forecast Actual Budget (Unfav)Budget OPERATING EXPENDITURES Bank Fees 228 100 0 100 38 500 462 100 Per Matt Cash Short (Sales Tax not Collected)0 0 0 0 0 Should be $0 Credit Card Fees 7,075 8,103 0 8,103 4,519 2,667 (1,852)7,500 Per Matt Insurance Expense 11,749 13,499 0 13,499 6,749 7,500 751 13,903 Per Matt Janitorial Expense / Trash 0 7,295 0 7,295 6,437 0 (6,437)7,295 Misc Expense 0 0 0 0 0 Dues and Subscriptions 0 0 0 0 0 Rent & CAM 103,979 106,341 0 106,341 79,407 80,324 917 109,531 2018 plus 3% incr Management Labor 58,750 58,750 0 58,750 34,271 67,500 33,229 81,250 Per Matt Repairs and Maintenance 52,336 55,000 0 55,000 42,839 37,500 (5,339)35,000 Per Matt Supplies 4,648 5,000 0 5,000 206 3,750 3,544 5,000 Per Matt Skate Shop Contract Labor 35,831 39,288 0 39,288 27,417 10,000 (17,417)40,467 2018 Forecast Skate Shop Management Fee 11,648 24,025 0 24,025 14,663 0 (14,663)25,000 % of Sales Skate Shop Supplies 16,479 2,100 0 2,100 743 2,667 1,924 2,100 Per Matt Special Event Expenses 0 4,000 0 4,000 0 0 0 5,000 % of Event Utilities - Skate Shop 1,510 1,500 0 1,500 659 933 274 1,500 Per Matt Utilities - Electricity 32,239 34,000 0 34,000 18,416 23,333 4,917 34,000 Per Matt Utilities - Gas 65,150 67,814 0 67,814 48,068 62,000 13,932 67,814 Per Matt Utilities - Water 4,711 5,000 0 5,000 3,651 3,333 (318)5,000 Per Matt Utilities - Street Scapes 22,915 25,000 0 25,000 0 20,000 20,000 25,000 Per Matt Landscaping - Plaza 11,842 17,594 0 17,594 14,014 8,333 (5,681)15,000 Per Matt Plaza Repair & Maintenance 72,000 0 72,000 14,481 0 (14,481)30,000 Per Matt Plaza Maintenance Labor 26,038 36,000 0 36,000 18,928 27,000 8,073 37,080 Per Matt Public Bathroom Labor 16,102 16,500 0 16,500 12,568 12,000 (568)16,995 Per Matt Loading Dock Labor 15,719 16,000 0 16,000 12,056 9,000 (3,056)16,480 Per Matt Loading Dock Repair & Maintenance 65,000 Incl $60K for Sealcoat Zamboni Maint. And Fuel 1,000 0 1,000 558 0 (558)1,000 Per Matt Turf 1,567 550 0 550 550 1,875 1,325 2,500 Repl every 4-5 yr Contingency 0 0 0 Operating Expenditures 500,517 616,459 0 616,459 361,238 380,215 18,978 649,515 REVENUE OVER (UNDER) EXPEND.193,366 51,419 75,000 126,419 290,689 234,370 56,319 70,029 0 OTHER FINANCING SOURCES and (USES) Transfer In from District #2 0 0 0 0 0 Transfer In from District #3 0 0 0 0 Transfer in from District #3 0 0 0 0 Transfer in from District #3 0 0 0 0 Developer Advances 268,536 616,459 0 616,459 223,029 215,306 7,723 602,955 Repayment of Developer Advances/Interest (524,618)(548,880)(75,000)(623,880)(300,000)(250,000)(50,000)(600,835) Repayment of Developer Principal from New Bonds 0 0 0 0 Repayment of Developer Interest from New Bonds 0 0 0 0 Advance Note Principal 0 0 0 0 (25,215) Advance Note Interest (115,382)(118,998)0 (118,998)0 0 0 (93,494) Transfer to Debt Service Fund TOTAL OTHER FINANCING SOURCES (371,464)(51,419)(75,000)(126,419)(76,971)(34,694)(42,277)(116,588) FUND BALANCE - BEGINNING 224,657 46,560 0 46,560 46,560 0 46,560 46,560 FUND BALANCE - ENDING 46,560 46,560 0 46,560 260,277 199,676 60,602 (0) No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = = PAGE 3 SOLARIS METROPOLITAN DISTRICT NO. 2 __________________________________________ Administrative Management Provided By Marchetti & Weaver, LLC 28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) 926-6060; Fax (970) 926-6040 Filed electronically: dlg-filing@state.co.us LGID#: 65740 December 31, 2018 Division of Local Government 1313 Sherman Street, Room 521 Denver, CO 80203 RE: Solaris Metropolitan District No. 2 Attached is the 2019 Budget for the Solaris Metropolitan District No. 2 in Eagle County, Colorado, submitted pursuant to Section 29-1-116, C.R.S. This Budget was adopted on November 16, 2018. If there are any questions on the budget, please contact Mr. Kenneth J. Marchetti, telephone number 970-926-6060. The mill levy certified to the County Commissioners of Eagle County is 13.000 mills for all general operating purposes, subject to statutory and/or TABOR limitations; 51.938 mills for general obligation debt; 0.000 mills for contractual obligations; 0.000 for refund/abatement; and 0.000 mills for Temporary Tax Credit/Mill Levy Reduction. Based on a net assessed valuation of $31,544,280, the total property tax revenue is $2,048,422.45. A copy of the certification of mill levies sent to the County Commissioners for Eagle County is enclosed. I hereby certify that the enclosed is a true and accurate copy of the budget and certification of tax levies to the Board of County Commissioners of Eagle County, Colorado. Sincerely, District Administrator Enclosure(s) SOLARIS METROPOLITAN DISTRICT NO. 2 2019 BUDGET MESSAGE Solaris Metropolitan District No. 2 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 public improvements and related operation and maintenance services as such power and authority is described in the Colorado Special District Act, and other applicable statutes. 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 The District was formed in late 2006. The District has joined with Solaris Metropolitan District No. 1 and Solaris Metropolitan District No. 3 in adopting a consolidated service plan. Under this consolidated service plan, Solaris Metropolitan District No. 1 is the “service district” and Solaris Metropolitan Districts No. 2 and No. 3 are the “financing districts.” As such, Solaris Metropolitan District No.1 is responsible for managing the construction and operation of facilities and improvements needed for the Solaris Metro Districts No. 2 and No. 3 areas. Initially Solaris Metropolitan District No. 1 issued $30,560,000 property tax revenue variable rate bonds on March 25, 2008 to be repaid with revenues pledged by Solaris Metropolitan District No. 2 and No. 3. During 2013 Solaris Metropolitan District No. 2 issued bonds and transferred the proceeds to District No. 1 and District No. 1’s 2008 bonds were paid off. During 2016 Solaris Metropolitan District No. 3 issued bonds and transferred the proceeds to District No. 2 and District No. 2’s 2013 bonds were paid off. Solaris Metropolitan District No. 2 and No. 3 levy a debt service mill levy to pay the debt service on District No. 3’s 2016 bonds. Operating expenses are funded pursuant to an Operating Agreement between Solaris Metropolitan District Nos. 1, 2 and 3. District No. 1 performs the operations and the operating expenses are funded through property tax revenues collected by the “financing” districts (No. 2 and No. 3) and paid to District No. 1. Page 1 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 2 TO ADOPT 2019 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE SOLARIS METROPOLITAN DISTRICT NO.2, 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 of the Solaris Metropolitan District No. 2 (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 November 16, 2018 and 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. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Page 2 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 2 (CONTINUED) TO SET MILL LEVIES A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2018, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE SOLARIS METROPOLITAN DISTRICT NO. 2, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2019 BUDGET YEAR. WHEREAS, the Board of Directors of the Solaris Metropolitan District No. 2 (the “District”), has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on November 16, 2018 and; WHEREAS, the amount of money necessary to balance the budget for general operating expenses and capital expenditure purposes from property tax revenue is $410,075.64 and; WHEREAS, the Board of Directors of the District finds that it is required to temporarily lower the general operating mill levy to render a refund for $0.00, and; WHEREAS, the amount of money necessary to balance the budget for capital expenditure purposes from property tax revenue approved by voters or at public hearing is $0.00, and; WHEREAS, the amount of money necessary to balance the budget for contractual obligations from property tax revenue as approved by voters is $0.00 and; WHEREAS, the amount of money necessary to balance the budget for voter approved general obligation debt and interest is $1,638,252.18, and; WHEREAS, the 2018 valuation for assessment for the District, as certified by the County Assessor is $31,544,280. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District: Section 1. That for the purposes of meeting all general operating expenses of the District during the 2019 budget year, there is hereby levied a tax of 13.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 2. That for the purposes of rendering a refund to its constituents during budget year 2019 there is hereby levied a temporary tax credit/mill levy reduction of 0.000 mills. Section 3. That for the purpose of meeting all capital expenditures of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Page 3 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 2 (CONTINUED) TO SET MILL LEVIES (CONTINUED) Section 4. That for the purpose of meeting all payments for contractual obligations of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 5 That for the purpose of meeting all payments for general obligation debt and interest of the District during the 2019 budget year, there is hereby levied a tax of 51.938 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 6. That any officer of the District or the District Administrator is hereby authorized and directed to either immediately certify to the Board of County Commissioners of Eagle County, Colorado, the mill levies for the District as hereinabove determined and set, or be authorized and directed to certify to the Board of County Commissioners of Eagle County, Colorado, the mill levies for the District as hereinabove determined and set based upon the final (December) certification of valuation from the county assessor. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Page 4 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 2 (CONTINUED) TO APPROPRIATE SUMS OF MONEY (PURSUANT TO SECTION 29-1-108, C.R.S.) A RESOLUTION APPROPRIATING SUMS OF MONEY TO THE VARIOUS FUNDS AND SPENDING AGENCIES, IN THE AMOUNT AND FOR THE PURPOSE AS SET FORTH BELOW, FOR THE SOLARIS METROPOLITAN DISTRICT NO. 2, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2019 BUDGET YEAR. WHEREAS, the Board of Directors of the Solaris Metropolitan District (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on November 16, 2018, and; WHEREAS, the Board of Directors has made provision therein for revenues in an amount equal or greater to the total proposed expenditures as set forth in said budget, and; WHEREAS, it is not only required by law, but also necessary to appropriate the revenues and reserves or fund balances provided in the budget to and for the purposes described below, thereby establishing a limitation on expenditures for the operations of the District. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT: Section 1. That the following sums are hereby appropriated from the revenues of each fund, to each fund, for the purposes stated: GENERAL FUND: Current Operating Expenses $ 438,128 TOTAL GENERAL FUND: $ 438,128 DEBT SERVICE FUND: Debt Service Expenditures $ 1,713,881 TOTAL DEBT SERVICE FUND: $ 1,713,881 (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) 122 County Tax entity code DOLA LGID/SID 65740 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Solaris Metropolitan District #2 the Board of Directors of the Solaris Metropolitan District #2 $31,544,280 $31,544,280 Submitted:12/7/2018 for budget/fiscal year 2019 . (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 13.000 mills 410,075.64$ 2. (0.000) mills -$ SUBTOTAL FOR GENERAL OPERATING: 13.000 mills 410,075.64$ 3.General Obligation Bonds and InterestJ 51.938 mills 1,638,346.81$ 4.Contractual ObligationsK 0.000 mills -$ 5.Capital ExpendituresL 0.000 mills -$ 6.Refunds/AbatementsM 0.000 mills -$ 7.OtherN (specify): 0.000 mills -$ 0.000 mills -$ TOTAL:[]64.938 mills 2,048,422.45$ Daytime phone:(970) 926-6060 x8 Signed: Title: District Accountant CERTIFICATION OF TAX LEVIES for NON-SCHOOL Governments (taxing entity)A (governing body)B Contact person: (print) Ken Marchetti Sum of General Operating Subtotal and Lines 3 to 7 Note: If the assessor certified a NET assessed valuation (AV) different than the GROSS AV due to a Tax Increment Financing (TIF) AreaF the tax levies must be calculated using the NET AV. The taxing entity's total property tax revenue will be derived from the mill levy multiplied against the NET assessed valuation of: (local government)C Include one copy of this tax entity's completed form when filing the local government's budget by January 31st, per 29-1-113 C.R.S. with the Division of Local Government (DLG), Room 521, 1313 Sherman Street, Denver, Colorado 80203. Questions? Call DLG (303) 864-7720. 1 If the taxing entity's boundaries include more than one county, you must certify the levies to each county. Use a separate form for each county and certify the same levies uniformly to each county per Article X, Section 3 of the Colorado Constitution. 2 Levies must be rounded to three decimal places and revenue must be calculated from the total NET assessed valuation (Line 4 of Form DLG57 on the County Assessor's FINAL certification of valuation). USE VALUE FROM FINAL CERTIFICATION OF VALUATION PROVIDED BY ASSESSOR NO LATER THAN DECEMBER 10 <Minus> Temporary General Property Tax Credit/ Temporary Mill Levy Rate ReductionI (GrossD assessed valuation, Line 2 of the Certification of Valuation From DLG 57 E) (NETG assessed valuation, Line 4 of the Certification of Valuation Form DLG 57) Hereby officially certifies the following mills to be levied against the taxing entity's GROSS assessed valuation of: Form DLG 70 (rev 9/15)Page 1 of 4 THIS SECTION APPLIES TO TITLE 32, ARTICLE 1 SPECIAL DISTRICTS THAT LEVY TAXES FOR PAYMENT OF GENERAL OBLIGATION DEBT (32-1-603 C.R.S.). Taxing entities that are Special Districts or Subdistricts of Special Districts must certify separate mill levies and revenue to the Board of County Commissioners, one each for the funding requirements of each debt (32-1-603, C.R.S.) Use additional pages as necessary. The Special District's or Subdistrict's total levies for general obligation bonds and total levies for contractual obligations should be recorded on Page 1, Lines 3 and 4 respectively. CERTIFY A SEPARATE MILL LEVY FOR EACH BOND OR CONTRACT: BONDSJ: 1. Purpose of Issue: To issue new bonds substituting Solaris Metropolitan District No. 3 as the obligor and paying off 2013 Bonds issued by Solaris Metropolitan District #2. The 2013 bonds were originally issued by Solaris Metropolitan District No. 1 in Series: Property Tax Revenue Multi-Modal Bonds, Series 2016A Date of Issue: 10/13/2016 Coupon rate: 3.75% Maturity Date: 12/1/2026 Levy: 51.938 Revenue: $1,638,346.81 2. Purpose of Issue: To issue new bonds to reimburse the Developer for advances made to the Districts pursuant to multiple funding and reimbursement agreements and ultimately summarized in an omnibus agreement. Series: Property Tax Revenue Multi-Modal Bonds, Series 2016B Date of Issue: 10/13/2016 Coupon rate: 7.00% Maturity Date: 12/15/2046 Levy: 0.00 Revenue: $0.00 CONTRACTSK: 3. Purpose of Contract: Title: Date: Principal Amount: Maturity Date: Levy: Revenue: 4. Purpose of Contract: Title: Date: Principal Amount: Maturity Date: Levy: Revenue: Use multiple copies of this page as necessary to separately report all bond and contractual obligations per 32-1-1603, C.R.S. CERTIFICATION OF TAX LEVIES, continued Form DLG 70 (rev 9/15)Page 2 of 4 SOLARIS METROPOLITAN DISTRICT # 2 Statement of Net Position September 30, 2018 CAPITAL GENERAL DEBT ASSETS FUND SERVICE & LT DEBT TOTAL Assets CASH IN SAVINGS - CSAFE 42,774 75,499 0 118,272 UMB Developer Loan Special Fund 0 0 UMB Bond Reserve Fund 0 0 UMB Pledged Revenue Account 0 0 DUE FROM COUNTY TREASURER 0 0 0 0 PROPERTY TAXES RECEIVABLE 2,520 10,069 0 12,589 ACCOUNTS RECEIVABLE - SMD #1 0 0 0 0 ACCOUNTS RECEIVABLE - SMD #3 0 0 Total Assets 45,294 85,567 0 130,861 Liabilities ACCOUNTS PAYABLE 0 0 0 0 DUE TO SMD #1 0 0 0 0 CAPITAL OBLIGATION TO SMD # 1 0 0 775,500 775,500 CAPITAL OBLIGATION TO SMD # 3 0 0 29,104,539 29,104,539 SERVICE OBLIGATION TO SMD # 1 98,837 98,837 2013 BONDS PAYABLE 0 0 Total Liabilities 0 0 29,978,876 29,978,876 Deferred Inflows DEFERRED PROPERTY TAX REVENUE 2,520 10,069 0 12,589 Net Position INVESTMENT IN GENERAL FIXED ASSETS 0 0 (29,978,876) (29,978,876) NET OF RELATED DEBT 0 0 FUND BALANCE 42,774 75,499 0 118,272 Total Net Position 42,774 75,499 (29,978,876)(29,860,603) Total Liabilities, Deferred Inflows and Net Position 45,294 85,567 0 130,861 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = Page 1 SOLARIS METROPOLITAN DISTRICT # 2 1/8/19 Printed: 1/8/19 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCEModified Modified BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATEDAccrual Accrual Basis Basis Cal Yr Cal Yr 9 Months 9 Months Cal Yr GENERAL FUND 2017 2018 Variance Cal Yr Ended Ended Variance 2019 Audited Amended Favorable 2018 09/30/18 09/30/18 Favorable Adopted BUDGET Actual Budget (Unfav)Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation 30,609,830 31,562,590 0 31,562,590 31,544,280 Final AV Allowance for Protests/Abatements Service Obligation Mill Levy 10.000 10.000 10.000 10.000 Advance Note Mill Levy 3.000 3.000 3.000 3.000 REVENUES SMD #2 Prop Tax - Service Obligation 306,098 315,626 0 315,626 313,687 315,626 (1,939) 315,443 SMD #2 Prop Tax - Advance Note 91,829 94,688 94,688 94,106 94,688 (582) 94,633 SMD #2 SO Tax - Service Ob & Adv Note 20,478 18,464 0 18,464 13,500 13,848 (348) 16,403 4% of Prop. Taxes SMD #1 Expense Reimbursement 9,635 9,825 0 9,825 9,063 3,000 6,063 8,250 Interest Income 7,963 4,250 0 4,250 3,188 0 3,188 0 TOTAL REVENUES 436,002 442,853 0 442,853 433,545 427,162 6,383 434,729 EXPENDITURES Insurance 3,435 2,738 0 2,738 2,738 3,500 762 2,750 Advance repayment 0 0 0 0 0 0 0 0 Audit 6,200 6,325 0 6,325 6,325 6,325 0 5,500 Per Engagement Election 0 0 0 0 0 0 0 0 Legal 0 0 0 0 0 0 0 0 Office Supplies 0 0 0 0 0 0 0 0 Treasurer's Fees - Service Ob & Adv Note 11,965 12,309 0 12,309 12,249 12,309 61 12,302 3% of Prop. Taxes Operations Costs Payment to SMD No. 1 407,338 415,435 0 415,435 409,548 315,626 (93,922) 315,443 Xfer Prop Tax Advance Note Payments to SMD No. 1 0 0 0 94,688 94,688 94,633 Xfer Prop Tax Contingency Allowance 0 5,000 0 5,000 0 0 0 7,500 TOTAL EXPENDITURES 428,937 441,808 0 441,808 430,860 432,448 1,588 438,128 REVENUE OVER (UNDER) EXPEND.7,066 1,045 0 1,045 2,685 (5,286)7,971 (3,399) OTHER SOURCES AND (USES) TOTAL OTHER SOURCES & (USES) 0 0 0 0 0 0 0 0 FUND BALANCE - BEGINNING 33,023 40,089 0 40,089 40,089 39,415 674 41,134 FUND BALANCE - ENDING 40,089 41,134 0 41,134 42,774 34,128 8,646 37,734 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = Page 2 SOLARIS METROPOLITAN DISTRICT # 2 1/8/19 Printed: 1/8/19 Modified STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Accrual BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis Cal Yr Cal Yr 9 Months 9 Months Cal Yr DEBT SERVICE FUND 2017 2018 Variance Cal Yr Ended Ended Variance 2019 Audited Amended Favorable 2018 09/30/18 09/30/18 Favorable Adopted BUDGET Actual Budget (Unfav)Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation 30,609,830 31,562,590 0 31,562,590 31,544,280 Final AV Allowance for Protests/Abatements 0 Debt Service Mill Levy 47.000 51.935 51.935 51.938 REVENUES SMD #2 Prop Tax - Debt Service 1,438,662 1,639,203 0 1,639,203 1,629,135 1,639,203 (10,068) 1,638,347 Specific Ownership Taxes 74,034 73,764 0 73,764 53,933 55,323 (1,390) 65,534 4% of Prop. Taxes SMD #3 Property Tax Transfer 0 0 0 0 0 0 0 0 Developer Advance 0 0 0 0 0 0 0 0 Interest Income 3,243 2,675 0 2,675 2,009 188 1,821 250 TOTAL REVENUES 1,515,939 1,715,642 0 1,715,642 1,685,077 1,694,714 (9,637)1,704,131 EXPENDITURES Bond Costs Payment to SMD #3 1,472,682 1,663,791 0 1,663,791 1,636,143 1,645,350 9,207 1,654,730 Xfer Prop Tax Treasurer's Fees 43,257 49,176 0 49,176 48,934 49,176 242 49,150 3% of Prop. Taxes Cash Management Fee 0 0 0 0 0 0 0 0 Surveillance Fee 0 0 0 0 0 0 0 0 Interest 2013 Bond/Loan 0 0 0 0 0 Principal 2013 Bond/Loan 0 0 0 0 0 Bonds Redemption 0 0 0 0 0 Excess Funds Principal Redemption 0 0 0 0 0 Redemption Premium 0 0 0 0 Developer Loan Repayment 0 0 0 0 0 Contingency 5,000 5,000 0 0 0 10,000 Allow for SO Variance TOTAL EXPENDITURES 1,515,939 1,717,967 5,000 1,712,967 1,685,077 1,694,526 9,449 1,713,881 REVENUE OVER (UNDER) EXPEND.0 (2,325)5,000 2,675 (0)188 (188)(9,750) OTHER SOURCES/(USES) Xfer from No. 3 Bond Proceeds 0 0 0 0 0 Proceeds from Bond Issuance 0 0 0 0 Payment to SMD #3 0 0 0 0 0 Payment from SMD #1 for Special Fund 0 0 Payment from SMD #1 for Bond Reserve Fund 0 0 0 0 Cost of Issuance 0 0 0 0 TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 0 0 0 FUND BALANCE - BEGINNING 75,499 75,499 0 75,499 75,499 76,999 (1,500) 78,174 FUND BALANCE - ENDING 75,499 73,174 5,000 78,174 75,499 77,186 (1,688)68,424 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = . . Components of Fund Balance: Developer Loan Special Fund 0 0 0 0 0 Bond Reserve Fund 0 0 0 0 0 Other 75,499 73,174 5,925 78,174 68,424 Total 75,499 73,174 5,925 78,174 68,424 Page 3 SOLARIS METROPOLITAN DISTRICT NO. 3 __________________________________________ Administrative Management Provided By Marchetti & Weaver, LLC 28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) 926-6060; Fax (970) 926-6040 Filed electronically: dlg-filing@state.co.us LGID#: 65741 December 31, 2018 Division of Local Government 1313 Sherman Street, Room 521 Denver, CO 80203 RE: Solaris Metropolitan District No. 3 Attached is the 2019 Budget for the Solaris Metropolitan District No. 3 in Eagle County, Colorado, submitted pursuant to Section 29-1-116, C.R.S. This Budget was adopted on November 16, 2018. If there are any questions on the budget, please contact Mr. Kenneth J. Marchetti, telephone number 970-926-6060. The mill levy certified to the County Commissioners of Eagle County is 13.000 mills for all general operating purposes, subject to statutory and/or TABOR limitations; 47.000 mills for general obligation debt; 0.000 mills for contractual obligations; 0.000 for refund/abatement; and 0.000 mills for Temporary Tax Credit/Mill Levy Reduction. Based on a net assessed valuation of $8,025,400, the total property tax revenue is $481,524.00. A copy of the certification of mill levies sent to the County Commissioners for Eagle County is enclosed. I hereby certify that the enclosed is a true and accurate copy of the budget and certification of tax levies to the Board of County Commissioners of Eagle County, Colorado. Sincerely, District Administrator Enclosure(s) SOLARIS METROPOLITAN DISTRICT NO. 3 2019 BUDGET MESSAGE Solaris Metropolitan District No. 3 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 public improvements and related operation and maintenance services as such power and authority is described in the Colorado Special District Act, and other applicable statutes. 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 The District was formed in late 2006. The District has joined with Solaris Metropolitan District No. 1 and Solaris Metropolitan District No. 2 in adopting a consolidated service plan. Under this consolidated service plan, Solaris Metropolitan District No. 1 is the “service district” and Solaris Metropolitan Districts No. 2 and No. 3 are the “financing districts.” As such, Solaris Metropolitan District No.1 is responsible for managing the construction and operation of facilities and improvements needed for the Solaris Metro Districts No. 2 and No. 3 areas. Initially Solaris Metropolitan District No. 1 issued $30,560,000 property tax revenue variable rate bonds on March 25, 2008 to be repaid with revenues pledged by Solaris Metropolitan District Nos. 2 and 3. During 2013 Solaris Metropolitan District No. 2 issued bonds and transferred the proceeds to District No. 1 and District No. 1’s 2008 bonds were paid off. During 2016 Solaris Metropolitan District No. 3 issued bonds and transferred the proceeds to District No. 2 and District No. 2’s 2013 bonds were paid off. Solaris Metropolitan District No. 2 and No. 3 levy a debt service mill levy to pay the debt service on District No. 3’s 2016 bonds. Operating expenses are funded pursuant to an Operating Agreement between Solaris Metropolitan District Nos. 1, 2 and 3. District No. 1 performs the operations and the operating expenses are funded through property tax revenues collected by the “financing” districts (No. 2 and No. 3) and paid to District No. 1. Page 1 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 3 TO ADOPT 2019 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE SOLARIS METROPOLITAN DISTRICT NO. 3, 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 of the Solaris Metropolitan District No. 3 (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 November 16, 2018 and 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. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Page 2 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 3 (CONTINUED) TO SET MILL LEVIES A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2018, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE SOLARIS METROPOLITAN DISTRICT NO. 3, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2019 BUDGET YEAR. WHEREAS, the Board of Directors of the Solaris Metropolitan District No. 3 (the “District”), has adopted the annual budget in accordance with the Local Government Budget Law of Colorado on November 16, 2018 and; WHEREAS, the amount of money necessary to balance the budget for general operating expenses and capital expenditure purposes from property tax revenue is $104,281.97 and; WHEREAS, the Board of Directors of the District finds that it is required to temporarily lower the general operating mill levy to render a refund for $0.00, and; WHEREAS, the amount of money necessary to balance the budget for capital expenditure purposes from property tax revenue approved by voters or at public hearing is $0.00, and; WHEREAS, the amount of money necessary to balance the budget for contractual obligations from property tax revenue as approved by voters is $0.00 and; WHEREAS, the amount of money necessary to balance the budget for voter approved general obligation debt and interest is $377,019.43 and; WHEREAS, the 2018 valuation for assessment for the District, as certified by the County Assessor is $8,021,690; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District: Section 1. That for the purposes of meeting all general operating expenses of the District during the 2019 budget year, there is hereby levied a tax of 13.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 2. That for the purposes of rendering a refund to its constituents during budget year 2019 there is hereby levied a temporary tax credit/mill levy reduction of 0.000 mills. Section 3. That for the purpose of meeting all capital expenditures of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Page 3 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 3 (CONTINUED) TO SET MILL LEVIES (CONTINUED) Section 4. That for the purpose of meeting all payments for contractual obligations of the District during the 2019 budget year, there is hereby levied a tax of 0.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 5 That for the purpose of meeting all payments for general obligation debt and interest of the District during the 2019 budget year, there is hereby levied a tax of 47.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2018. Section 6. That any officer of the District or the District Administrator is hereby authorized and directed to either immediately certify to the Board of County Commissioners of Eagle County, Colorado, the mill levies for the District as hereinabove determined and set, or be authorized and directed to certify to the Board of County Commissioners of Eagle County, Colorado, the mill levies for the District as hereinabove determined and set based upon the final (December) certification of valuation from the county assessor. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Page 4 of 5 RESOLUTIONS OF SOLARIS METROPOLITAN DISTRICT NO. 3 (CONTINUED) TO APPROPRIATE SUMS OF MONEY (PURSUANT TO SECTION 29-1-108, C.R.S.) A RESOLUTION APPROPRIATING SUMS OF MONEY TO THE VARIOUS FUNDS AND SPENDING AGENCIES, IN THE AMOUNT AND FOR THE PURPOSE AS SET FORTH BELOW, FOR THE SOLARIS METROPOLITAN DISTRICT NO. 3, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2019 BUDGET YEAR. WHEREAS, the Board of Directors of the Solaris Metropolitan District No. 3 (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on November 16, 2018 and; WHEREAS, the Board of Directors has made provision therein for revenues in an amount equal or greater to the total proposed expenditures as set forth in said budget and; WHEREAS, it is not only required by law, but also necessary to appropriate the revenues and reserves or fund balances provided in the budget to and for the purposes described below, thereby establishing a limitation on expenditures for the operations of the District. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT: Section 1. That the following sums are hereby appropriated from the revenues of each fund, to each fund, for the purposes stated: GENERAL FUND: Current Operating Expenses $ 120,160 TOTAL GENERAL FUND: $ 120,160 DEBT SERVICE FUND: Debt Service Expenditures $ 1,560,516 TOTAL DEBT SERVICE FUND: $ 1,560,516 (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) 123 County Tax entity code DOLA LGID/SID 65741 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Solaris Metropolitan District #3 the Board of Directors of the Solaris Metropolitan District #3 $8,025,400 $8,025,400 Submitted:12/7/2018 for budget/fiscal year 2019 . (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 13.000 mills 104,330.20$ 2. (0.000) mills -$ SUBTOTAL FOR GENERAL OPERATING: 13.000 mills 104,330.20$ 3.General Obligation Bonds and InterestJ 47.000 mills 377,193.80$ 4.Contractual ObligationsK 0.000 mills -$ 5.Capital ExpendituresL 0.000 mills -$ 6.Refunds/AbatementsM 0.000 mills -$ 7.OtherN (specify): 0.000 mills -$ 0.000 mills -$ TOTAL:[]60.000 mills 481,524.00$ Daytime phone:(970) 926-6060 x8 Signed: Title: District Accountant CERTIFICATION OF TAX LEVIES for NON-SCHOOL Governments (taxing entity)A (governing body)B Contact person: (print) Ken Marchetti Sum of General Operating Subtotal and Lines 3 to 7 Note: If the assessor certified a NET assessed valuation (AV) different than the GROSS AV due to a Tax Increment Financing (TIF) AreaF the tax levies must be calculated using the NET AV. The taxing entity's total property tax revenue will be derived from the mill levy multiplied against the NET assessed valuation of: (local government)C Include one copy of this tax entity's completed form when filing the local government's budget by January 31st, per 29-1-113 C.R.S. with the Division of Local Government (DLG), Room 521, 1313 Sherman Street, Denver, Colorado 80203. Questions? Call DLG (303) 864-7720. 1 If the taxing entity's boundaries include more than one county, you must certify the levies to each county. Use a separate form for each county and certify the same levies uniformly to each county per Article X, Section 3 of the Colorado Constitution. 2 Levies must be rounded to three decimal places and revenue must be calculated from the total NET assessed valuation (Line 4 of Form DLG57 on the County Assessor's FINAL certification of valuation). USE VALUE FROM FINAL CERTIFICATION OF VALUATION PROVIDED BY ASSESSOR NO LATER THAN DECEMBER 10 <Minus> Temporary General Property Tax Credit/ Temporary Mill Levy Rate ReductionI (GrossD assessed valuation, Line 2 of the Certification of Valuation From DLG 57 E) (NETG assessed valuation, Line 4 of the Certification of Valuation Form DLG 57) Hereby officially certifies the following mills to be levied against the taxing entity's GROSS assessed valuation of: Form DLG 70 (rev 9/15)Page 1 of 4 THIS SECTION APPLIES TO TITLE 32, ARTICLE 1 SPECIAL DISTRICTS THAT LEVY TAXES FOR PAYMENT OF GENERAL OBLIGATION DEBT (32-1-603 C.R.S.). Taxing entities that are Special Districts or Subdistricts of Special Districts must certify separate mill levies and revenue to the Board of County Commissioners, one each for the funding requirements of each debt (32-1-603, C.R.S.) Use additional pages as necessary. The Special District's or Subdistrict's total levies for general obligation bonds and total levies for contractual obligations should be recorded on Page 1, Lines 3 and 4 respectively. CERTIFY A SEPARATE MILL LEVY FOR EACH BOND OR CONTRACT: BONDSJ: 1. Purpose of Issue:To issue new bonds substituting Solaris Metropolitan District No. 3 as the obligor and paying off 2013 Bonds issued by Solaris Metropolitan District #2. The 2013 bonds were originally issued by Solaris Metropolitan District No. 1 in 2008 public improvements. Series: Property Tax Revenue Multi-Modal Bonds, Series 2016A Date of Issue: 10/13/2016 Coupon rate: 3.75% Maturity Date: 12/1/2026 Levy: 47.000 Revenue: $377,193.80 2. Purpose of Issue:To issue new bonds to reimburse the Developer for advances made to the Districts pursuant to multiple funding and reimbursement agreements and ultimately summarized in an omnibus agreement. Series: Property Tax Revenue Multi-Modal Bonds, Series 2016B Date of Issue: 10/13/2016 Coupon rate: 7.00% Maturity Date: 12/15/2046 Levy: 0.000 Revenue: $0.00 CONTRACTSK: 3. Purpose of Contract: Title: Date: Principal Amount: Maturity Date: Levy: Revenue: 4. Purpose of Contract: Title: Date: Principal Amount: Maturity Date: Levy: Revenue: Use multiple copies of this page as necessary to separately report all bond and contractual obligations per 32-1-1603, C.R.S. CERTIFICATION OF TAX LEVIES, continued Form DLG 70 (rev 9/15)Page 2 of 4 SOLARIS METROPOLITAN DISTRICT NO. 3 1/8/19 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED SOLARIS METROPOLITAN DISTRICT NO. 3 Statement of Net Position 08-Jan-19 08-Jan-19 September 30, 2018 CAPITAL GENERAL DEBT ASSETS FUND SERVICE & LT DEBT TOTAL Assets CASH IN SAVINGS - CSAFE 12,263 11,013 0 23,275 CASH HELD BY TRUSTEE 1,066,565 1,066,565 CASH HELD BY TRUSTEE - DS RESERVE 1,889,524 1,889,524 DUE FROM COUNTY TREASURER 0 0 0 0 PROPERTY TAXES RECEIVABLE 103 371 0 473 ACCOUNTS RECEIVABLE - SMD #1 0 0 0 0 ACCOUNTS RECEIVABLE - SMD #2 0 0 0 0 Total Assets 12,365 2,967,472 0 2,979,838 Liabilities ACCOUNTS PAYABLE 0 0 0 0 DUE TO SMD #1 0 0 0 0 CAPITAL OBLIGATION TO SMD # 2 0 0 CAPITAL OBLIGATION TO SMD # 1 0 0 147,714 147,714 CAPITAL OBLIGATION FROM SMD #2 (29,104,539)(29,104,539) SERVICE OBLIGATION TO SMD # 1 0 0 18,826 18,826 ACCRUED INTEREST PAYABLE 475,459 475,459 2016 Bonds Payable 2016A 29,330,000 29,330,000 2016 Bonds Payable 2016B 4,000,000 4,000,000 2016 Bond Premium 952,790 952,790 Total Liabilities 0 0 5,820,251 5,820,251 Deferred Inflows DEFERRED PROPERTY TAX REVENUE 103 371 0 473 Net Position INVESTMENT IN GENERAL FIXED ASSETS, NET OF RELATED DEBT 0 0 (5,820,251)(5,820,251) FUND BALANCE 12,263 2,967,102 0 2,979,364 Total Net Position 12,263 2,967,102 (5,820,251)(2,840,887) Total Liabilities, Deferred Inflows and Net Position 12,365 2,967,472 0 2,979,838 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = SOLARIS METROPOLITAN DISTRICT NO. 31/8/19 1/8/19 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Modified BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Accrual Basis Cal Yr Cal Yr 9 Months 9 Months Cal Yr GENERAL FUND 2017 2018 Variance Cal Yr Ended Ended Variance 2019 Audited Amended Favorable 2018 09/30/18 09/30/18 Favorable Adopted BUDGET Actual Budget (Unfav)Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation SMD No. 3 5,969,430 8,103,340 8,103,340 8,025,400 Final AV Service Obligation Mill Levy 10.000 10.000 10.000 10.000 Advance Note Levy 3.000 3.000 3.000 3.000 REVENUES SMD #3 Prop Tax - Service Obligation 59,694 81,033 0 81,033 80,955 81,033 (79)80,254 SMD #3 Prop Tax - Advance Note 17,908 24,310 24,310 24,286 24,310 (24)24,076 SMD #3 SO Tax - Service Ob & Adv Note 3,993 4,740 0 4,740 3,024 3,555 (531)4,173 4% of Prop. Taxes SMD #1 Expense Reimbursement 11,865 7,000 0 7,000 6,450 6,500 (50)7,700 Interest Income 1,303 850 0 850 652 113 539 750 TOTAL REVENUES 94,764 117,934 0 117,934 115,367 115,511 (145)116,953 EXPENDITURES Insurance 3,165 3,200 0 3,200 3,100 3,200 100 3,200 Directors Fees & Payroll Taxes 0 0 0 0 0 0 0 0 Advance repayment 0 0 0 0 0 0 0 0 Audit 3,200 3,350 0 3,350 3,350 3,350 0 4,500 Per Engagement Election 0 0 0 0 0 0 0 0 Legal 0 0 0 0 0 0 0 0 Office Supplies 0 0 0 0 0 0 0 0 Treasurer's Fees - Service Obligation 2,330 3,160 0 3,160 3,160 3,160 1 3,130 3% of Prop. Taxes Operations Costs Payment to SMD No. 1 79,334 106,504 0 106,504 105,191 81,033 (24,158)80,254 Xfer Prop Tax Advance Note Payment to SMD No. 1 0 0 0 24,310 24,310 24,076 Xfer Prop Tax Contingency Allowance 0 1,000 1,000 0 0 0 0 5,000 TOTAL EXPENDITURES 88,030 117,214 1,000 116,214 114,801 115,054 253 120,160 REVENUE OVER (UNDER) EXPEND.6,734 720 1,000 1,720 566 458 108 (3,207) OTHER SOURCES AND (USES) TOTAL OTHER SOURCES & (USES) 0 0 0 0 0 0 0 0 FUND BALANCE - BEGINNING 4,963 11,697 0 11,697 11,697 11,763 (66)13,417 FUND BALANCE - ENDING 11,697 12,417 1,000 13,417 12,263 12,220 42 10,210 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = PAGE 2 SOLARIS METROPOLITAN DISTRICT NO. 3 1/8/19 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Cal Yr Cal Yr 9 Months 9 Months Cal Yr DEBT SERVICE FUND 2017 2018 Variance Cal Yr Ended Ended Variance 2019 Audited Amended Favorable 2018 09/30/18 09/30/18 Favorable Adopted BUDGET Actual Budget (Unfav)Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation SMD No. 3 5,969,430 8,103,340 0 8,103,340 8,025,400 Percent Increase Assessed Valuation SMD No. 2 30,609,830 31,562,590 31,562,590 31,544,280 Percent Increase Debt Service Mill Levy 47.000 0 47.000 47.000 REVENUES SMD No. 3 Prop Tax - Debt Service 280,563 380,857 0 380,857 380,486 380,857 (371)377,194 Specific Ownership Taxes 14,434 17,139 0 17,139 10,933 11,426 (493)15,088 4% of Prop. Taxes Property Tax Transfer from SMD No. 2 1,472,682 1,663,791 0 1,663,791 1,605,859 1,663,791 (57,932)1,654,730 Per No. 2 Bgt Interest Income 16,315 0 0 0 29,476 0 29,476 12,000 TOTAL REVENUES 1,783,995 2,061,787 0 2,061,787 2,026,753 2,056,074 (29,320)2,059,012 EXPENDITURES Interest Bond Series 2016A 1,434,125 1,434,125 0 1,434,125 717,063 717,063 1 1,431,500 Principal Bond Series 2016A 70,000 0 70,000 100,000 Interest Bond Series 2016B 0 Principal Bond Series 2016B 0 Bond Costs Payment to SMD No. 2 0 0 0 0 0 Treasurer's Fees 8,424 11,426 0 11,426 11,424 11,426 2 11,316 3% of Prop. Taxes Cash Management Fees 1,996 4,000 0 4,000 2,629 1,650 (979)2,200 Annual Surveilance Fee 5,500 5,500 0 5,500 0 0 0 5,500 Contingency 0 0 0 0 0 10,000 TOTAL EXPENDITURES 1,450,045 1,525,051 0 1,525,051 731,115 730,139 (977)1,560,516 REVENUE OVER (UNDER) EXPEND.333,950 536,736 0 536,736 1,295,638 1,325,935 (30,297)498,496 OTHER SOURCES/(USES) Proceeds from Developer Note 0 0 0 0 Bond Proceeds Series A 0 0 0 0 Bond Proceeds Series B 0 0 0 0 Xfer From No. 2 0 0 Xfer to No. 1 for Developer Advances 0 0 0 0 Cost of Issuance 0 0 0 0 Xfer to SMD No. 2 to Refund 2013 Bonds 0 0 0 0 Debt Service Reserve Fund 0 0 0 0 Deposit to Surplus Fund 0 0 0 0 Transfer to Mandatory Redemption Account 0 TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 0 0 0 FUND BALANCE - BEGINNING 1,337,514 1,671,463 0 1,671,463 1,671,464 1,337,514 333,950 2,208,199 FUND BALANCE - ENDING 1,671,463 2,208,199 0 2,208,199 2,967,102 2,663,449 303,653 2,706,695 No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = Components of Fund Balance: Bond Reserve Fund 1,216,237 1,216,237 -98,591 1,216,237 1,216,237 Bond Surplus Fund 431,561 968,297 968,297 968,297 1,466,793 Other 23,666 23,666 -869,706 23,666 23,666 Total 1,671,463 2,208,199 0 2,208,199 2,706,695