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HomeMy WebLinkAbout2018 Consolidated Annual Report0801.0024: 842158 - 1 - VAIL SQUARE METROPOLITAN DISTRICT NOS. 1-3 2018 CONSOLIDATED ANNUAL REPORT Pursuant to the Consolidated Service Plan for Vail Square Metropolitan District Nos. 1-3 (the “Districts”), the Districts shall be 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, 2017, the Districts make the following report: 1. Boundary changes made to the Districts’ boundaries as of December 31 of the prior year. No boundary changes were made to the Districts’ boundaries in 2018. 2. Intergovernmental Agreements with other governmental entities entered into as of December 31 of the prior year. No Intergovernmental Agreements were entered into during 2018. 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 2018 assessed valuation for each District is as follows: District No. 1 - $90 District No. 2 - $24,312,790 District No. 3 - $13,997,810 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 attached as Exhibit B. 0801.0024: 842158 - 2 - 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 no uncured events of default by the Districts, which continued beyond a ninety (90) day period, under any debt instrument. 0801.0024: 917064 EXHIBIT A 2019 Budgets VAIL SQUARE 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 January 15, 2018 Division of Local Government 1313 Sherman Street, Room 521 Denver, CO 80203 Filed Electronically: dlg-filing@state.co.us RE: Vail Square Metropolitan District No. 1 Budget; LGID #65508 Attached is the 2018 Budget for the Vail Square Metropolitan District No. 1 in Eagle County, Colorado, submitted pursuant to Section 29-1-116, C.R.S. This Budget was adopted on October 23, 2017. If there are any questions on the budget, please contact Mr. Kenneth J. Marchetti, telephone number 970-926-6060, Ext 8. 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 G.O. bonds; 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 $50, 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, ____________________________________ Title ________________________________ Enclosure(s) VAIL SQUARE METROPOLITAN DISTRICT No. 1 2018 BUDGET MESSAGE Vail Square 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 services of roads, drainage facilities, streetscape, water and sewer utilities mains. 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. 2018 BUDGET STRATEGY Vail Square Metropolitan District No.1 was formed in late 2005. The District has joined with Vail Square Metropolitan District No. 2 and Vail Square Metropolitan District No.3 in adopting a consolidated service plan. Under this consolidated service plan, Vail Square Metro District No.1 is the “service district” and Vail Square Metro District Nos. 2 and 3 are the “financing districts.” As such, Vail Square Metro District No. 1 will be responsible for managing the construction and operation of facilities and improvements needed for the Vail Square Metro District Nos. 2 and 3 areas. In 2008 the District issued a $16 Million Tax Supported Loan Facility. The District is using the net proceeds from the loan facility to finance the cost of the infrastructure improvements. As stated under the Joint Funding Agreement and the District Facilities Joint Financing, Construction and Service Agreement between the District and Vail Square Metro District Nos. 2 and 3, Districts Nos. 2 and 3 will be responsible for providing the funding and tax bases needed to support the financing plan for capital improvements. Vail Square Metropolitan District Nos. 2 and 3 anticipate utilizing the property taxes they collect to pay for a portion of their obligations to the District. Page 1 of 5 RESOLUTIONS OF VAIL SQUARE METROPOLITAN DISTRICT NO. 1 TO ADOPT 2018 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE VAIL SQUARE METROPOLITAN DISTRICT NO.1, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2018 AND ENDING ON THE LAST DAY OF DECEMBER 2018. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 1 (the “District”) has appointed a budget committee to prepare and submit a proposed 2018 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, 2017 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 VAIL SQUARE METROPOLITAN DISTRICT NO. 1 (CONTINUED) TO SET MILL LEVIES A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2017, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE VAIL SQUARE METROPOLITAN DISTRICT NO. 1, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2018 BUDGET YEAR. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 1 (the “District”), has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on October 23, 2017 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 obligat ions 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 2017 net valuation for assessment for the District, as certified by the County Assessor is $50. 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 2018 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 2017. Section 2. That for the purposes of rendering a refund to its constituents during budget year 2018 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 2018 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 2017. Page 3 of 5 RESOLUTIONS OF VAIL SQUARE 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 2018 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 2017. Section 5 That for the purpose of meeting all payments for bonds and interest of the District during the 2018 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 2017. 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 VAIL SQUARE 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 VAIL SQUARE METROPOLITAN DISTRICT NO. 1, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2018 BUDGET YEAR. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 1 (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on October 23, 2017, 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 $ 132,495 DEBT SERVICE FUND: Debt Service Expenditures $ 1,476,436 (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) VAIL SQUARE METROPOLITAN DISTRICT #1 STATEMENT OF NET POSITION Printed:12/28/17 September 30, 2017 FIXED GENERAL DEBT ASSETS ASSETS FUND SERVICE & LT DEBT TOTAL CSafe 895,484 8,895 904,379 Compass - Operating 4,877 4,877 Compass - Project Fund 354,051 354,051 Compass - Pledged Revenue 616,632 616,632 Compass - Loan Payment 9 9 Compass - D/S Reserve 505,808 505,808 Accounts Receivable - VSQ #2 & #3 26,263 238,178 264,441 Prepaid Insurance 0 0 Assets 1,863,895 1,863,895 Accum Depreciation/Amort (741,800)(741,800) Net Capital & Service Oblig - VSQ 2 & VSQ 3 11,987,371 11,987,371 TOTAL ASSETS 926,625 1,723,573 13,109,466 15,759,663 DEFERRED OUFLOWS Swap Interest Rate Deferred Inflow 1,427,110 1,427,110 TOTAL DEFERRED OUFLOWS 0 0 1,427,110 1,427,110 TOTAL ASSETS AND DEFERRED OUTFLOWS 926,625 1,723,573 14,536,576 17,186,773 LIABILITIES Accounts Payable 20,938 0 20,938 Accrued Interest Payable 49,991 49,991 Long Term Obligations 13,885,000 13,885,000 Interest Rate Swap 1,427,110 1,427,110 TOTAL LIABILITIES 20,938 0 15,362,101 15,383,039 NET POSITION Net Investment in Capital Assets (825,525)(825,525) Unrestricted Net Position 905,687 1,723,572.63 2,629,259 TOTAL NET POSITION 905,687 1,723,573 (825,525)1,803,734 TOTAL LIABILITIES AND NET POSITION 926,625 1,723,573 14,536,576 17,186,773 = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.PAGE 1 VAIL SQUARE METROPOLITAN DISTRICT #1 MODIFIED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Printed: 12/28/17 ACCRUAL BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED BASIS GENERAL FUND Cal year 9 Months 9 Months Cal Year 2017 Cal year Ended Ended Variance 2018 2016 Adopted 2017 09/30/17 09/30/17 Favorable Adopted Budget Audited Budget Forecast Actual Budget (Unfav)Budget Comments Assessed Valuation Vail Square Metro Dist # 1 50 50 50 50 Nov 2017 Final AV Vail Square Metro Dist # 1 - TIF AV 40 40 40 40 Nov 2017 Final AV Vail Square Metro Dist # 2 14,014,620 13,935,230 13,935,230 13,182,060 Nov 2017 Final AV Vail Square Metro Dist # 2 - TIF AV 10,800,480 11,069,090 11,069,090 11,147,930 Nov 2017 Final AV Vail Square Metro Dist # 3 5,448,760 5,139,910 5,139,910 7,626,730 Nov 2017 Final AV Vail Square Metro Dist # 3 - TIF AV 4,199,130 4,082,760 4,082,760 6,449,850 Nov 2017 Final AV 34,463,080 34,227,080 34,227,080 38,406,660 REVENUES Xfer VSQ #2 Prop Tax.-Serv 40,778 40,552 40,552 39,901 40,552 (651)38,360 AV x Mill levy Xfer VSQ #2 TIF TOV Prop Tax.-Serv 31,513 32,211 32,211 30,468 30,211 257 32,440 AV x Mill levy Xfer VSQ #3 Prop Tax.-Serv 15,854 15,420 15,420 14,957 15,420 (463)22,880 AV x Mill levy Xfer VSQ #3 TIF TOV Prop Tax.-Serv 12,223 11,881 11,881 11,881 11,881 0 18,769 AV x Mill levy Xfer VSQ #3 allowance for abate (10,400) Interest Income 2,102 2,114 2,114 2,792 1,586 1,207 2,128 .25% of fund bal TOTAL REVENUES 102,471 102,177 102,177 99,999 99,649 350 104,177 EXPENDITURES Accounting 11,705 15,000 15,000 10,566 11,250 684 15,000 Audit 8,500 8,500 8,500 8,500 8,500 0 8,500 Elections 1,504 0 0 0 0 0 2,000 Insurance 2,579 2,800 2,880 2,877 2,800 (77)3,100 Legal 8,992 15,000 15,000 10,372 11,250 878 15,000 Miscellaneous 131 500 500 300 380 80 500 Snowmelt Energy 28,419 29,500 29,500 12,510 15,188 2,678 31,500 Snowmelt Repairs & Maintenance 7,816 18,915 18,800 1,716 2,200 484 15,500 Operations Expenses - AVS 16,719 20,000 25,000 19,856 17,000 (2,856)21,400 Direct District Operating Expenses 0 5,000 5,000 0 0 0 5,000 Contingency 0 10,000 5,000 0 0 0 10,000 TOTAL EXPENDITURES 86,365 125,215 125,180 66,697 68,568 1,871 127,500 REVENUE OVER (UNDER) EXPEND.16,106 (23,038)(23,003)33,302 31,082 (2,221)(23,323) OTHER FINANCING SOURCES/(USES) Interdistrict Contirb - VSQ MD 3 (3,965)(5,285)(4,285)(5,941)(5,285)656 (4,995) TOTAL OTHER FINANCING SOURCES (3,965)(5,285)(4,285)(5,941)(5,285)656 (4,995) FUND BALANCE - BEGINNING 866,185 845,515 878,325 878,326 845,515 (32,811)851,037 FUND BALANCE - ENDING 878,325 817,192 851,037 905,687 871,312 (34,375)822,720 = = = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.PAGE 2 VAIL SQUARE METROPOLITAN DISTRICT #1 Printed:12/28/17 MODIFIED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ACCRUAL BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED BASIS DEBT SERVICE FUND Cal year 9 Months 9 Months Cal Year 2017 Cal year Ended Ended Variance 2018 2016 Adopted 2017 09/30/17 09/30/17 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation Vail Square Metro Dist # 1 50 50 50 50 Nov 2017 Final AV Vail Square Metro Dist # 1 - TIF AV 40 40 40 40 Nov 2017 Final AV Vail Square Metro Dist # 2 14,014,620 13,935,230 13,935,230 -5%13,182,060 Nov 2017 Final AV Vail Square Metro Dist # 2 - TIF AV 10,800,480 11,069,090 11,069,090 1%11,147,930 Nov 2017 Final AV Vail Square Metro Dist # 3 5,448,760 5,139,910 5,139,910 48%7,626,730 Nov 2017 Final AV Vail Square Metro Dist # 3 - TIF AV 4,199,130 4,082,760 4,082,760 58%6,449,850 Nov 2017 Final AV Total Assessed Value 34,463,080 34,227,080 34,227,080 38,406,660 Change 13%-1%12% Mill Levy Rates IGA Services Mill Levy Rate #2 3.000 3.000 3.000 3.000 Capital Pledge Mill Levy Rate #2 32.000 32.000 32.000 32.000 Total Mill Levy Rate #2 35.000 35.000 35.000 61.54%35.000 61.54% IGA Services Mill Levy Rate #3 3.000 3.000 3.000 3.000 Capital Pledge Mill Levy Rate #3 18.875 18.875 18.875 18.875 Total Mill Levy Rate #3 21.875 21.875 21.875 38.46%21.875 38.46% REVENUES Xfer IGA D/S - VSQ # 2 434,969 432,550 432,550 425,613 425,759 (146)409,171 AV x Mill levy Xfer IGA D/S - VSQ # 2 TIF TOV 336,144 343,585 343,585 324,982 325,000 (18)346,032 AV x Mill levy Xfer IGA D/S - VSQ # 3 99,746 94,105 94,105 94,105 94,106 (0)139,636 AV x Mill levy Xfer IGA D/S - VSQ # 3 TIF TOV 76,904 74,750 74,750 74,751 74,750 1 118,089 AV x Mill levy Xfer VSQ 3 allowance for abate (65,600) Xfer Spec Own Tax - VSQ 2 37,621 39,476 39,476 27,261 26,317 944 38,393 Xfer Spec Own Tax - VSQ 3 8,640 8,588 8,588 5,930 5,675 255 8,841 Interest income - Cap Int/DS Res Fund 3,129 2,662 2,662 4,627 1,997 2,631 2,651 based on .25% TOTAL REVENUES 997,152 995,716 995,716 957,271 953,604 3,667 997,212 EXPENDITURES Swap - $14M @ Fixed Interest Rate Paid 573,200 555,508 555,508 276,966 277,754 788 538,448 4.61% interest Loan - $14M Hedged Principal 345,000 365,000 365,000 0 0 0 380,000 Loan - $2M Unhedged @ Floating Interest 52,855 56,988 56,988 26,027 28,494 2,468 56,988 min of 2.84941% or (65% LIBOR + 125 bp)*150% Loan - $2M Unhedged Principal 0 0 0 0 500,000 6/1/2023 entire amt Agent/Bank Fees 0 1,000 1,000 0 0 0 1,000 TOTAL EXPENDITURES 971,054 978,496 978,496 302,992 306,248 3,256 1,476,436 REVENUE OVER (UNDER) EXPEND.26,098 17,219 17,219 654,278 647,355 6,923 (479,224) FUND BALANCE - BEGINNING 1,043,197 1,064,684 1,043,197 1,069,294 1,064,684 4,610 1,060,416 FUND BALANCE - ENDING 1,069,295 1,081,903 1,060,416 1,723,573 1,712,039 11,533 581,192 = = = = = = Components of Fund Balance Debt Service Reserve Fund 505,599 505,587 505,599 505,587 Restricted for Future Debt Service 563,696 576,316 554,817 75,605 Total 1,069,295 1,081,903 1,060,416 581,192 Principal Outstanding on 2008 Loan 11,885,000 11,520,000 11,520,000 11,140,000 Principal Outstanding on 2008A Loan 2,000,000 2,000,000 2,000,000 1,500,000 Total Debt Outstanding 13,885,000 13,520,000 13,520,000 12,640,000 Debt to Assessed Value Ratio 40%40%40%33% No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.PAGE 3 Page 1 of 4Form DLG 70 (rev 9/15) 114 County Tax entity code DOLA LGID/SID 65508 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Vail Square Metropolitan District No. 1 the Board of Directors of the Vail Square Metropolitan District No. 1 $90 $50 Submitted:12/9/2017 for budget/fiscal year 2018 . (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 0.000 mills -$ 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 Administrator CERTIFICATION OF TAX LEVIES for NON-SCHOOL Governments (taxing entity)A (governing body)B Contact person: (print)Kenneth J. 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 57E) (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: VAIL SQUARE 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 January 15, 2018 Division of Local Government 1313 Sherman Street, Room 521 Denver, CO 80203 Filed electronically: dlg-filing@state.co.us RE: Vail Square Metropolitan District No. 2 Budget; LGID #65509 Attached is the 2018 Budget for the Vail Square Metropolitan District No. 2 in Eagle County, Colorado, submitted pursuant to Section 29-1-116, C.R.S. This Budget was adopted on October 23, 2017. If there are any questions on the budget, please contact Mr. Kenneth J. Marchetti, telephone number 970-926-6060, Ext 8. 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; 32.000 mills for general obligation debt; 3.000 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 $13,182,060, the total property tax revenue is $461,372.10. 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, ____________________________________ Title ________________________________ Enclosure(s) VAIL SQUARE METROPOLITAN DISTRICT No. 2 2018 BUDGET MESSAGE Vail Square 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 services of roads, drainage facilities, streetscape, water and sewer utilities mains. 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. 2018 BUDGET STRATEGY Vail Square Metropolitan District No. 2 was formed in late 2005. The District has joined with Vail Square Metropolitan District No.1 and Vail Square Metropolitan District No.3 in adopting a consolidated service plan. Under this consolidated service plan, Vail Square Metro District No. 1 will be the “service district” and Vail Square Metro District Nos. 2 and 3 will be the “financing districts.” As such, Vail Square Metro District No.1 will be responsible for managing the construction and operation of facilities and improvements needed for the Vail Square Metro District Nos. 2 and 3 areas. The District and Vail Square Metro District No.3 will be responsible for providing the funding and tax bases needed to support the financing plan for capital improvements. Vail Square Metropolitan District Nos. 2 and 3 anticipate utilizing the property taxes they collect to pay for a portion of their obligations under the Joint Funding Agreement and the District Facilities Joint Financing, Construction and Service Agreement with Vail Square Metropolitan District No.1. Page 1 of 5 RESOLUTIONS OF VAIL SQUARE METROPOLITAN DISTRICT NO. 2 TO ADOPT 2018 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE VAIL SQUARE METROPOLITAN DISTRICT NO.2, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2018 AND ENDING ON THE LAST DAY OF DECEMBER 2018. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 2 (the “District”) has appointed a budget committee to prepare and submit a proposed 2018 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, 2017 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 VAIL SQUARE METROPOLITAN DISTRICT NO. 2 (CONTINUED) TO SET MILL LEVIES A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2017, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE VAIL SQUARE METROPOLITAN DISTRICT NO. 2, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2018 BUDGET YEAR. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 2 (the “District”), has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on October 23, 2017 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 $39,546.18 and; WHEREAS, the amount of money necessary to balance the budget for voter approved general obligation debt and interest is $421,825.92 and; WHEREAS, the 2017 net valuation for assessment for the District, as certified by the County Assessor is $13,182,060. 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 2018 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 2017. Section 2. That for the purposes of rendering a refund to its constituents during budget year 2018 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 2018 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 2017. Page 3 of 5 RESOLUTIONS OF VAIL SQUARE 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 2018 budget year, there is hereby levied a tax of 3.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2017. Section 5 That for the purpose of meeting all payments for general obligation debt and interest of the District during the 2018 budget year, there is hereby levied a tax of 32.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2017. 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 VAIL SQUARE 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 VAIL SQUARE METROPOLITAN DISTRICT NO. 2, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2018 BUDGET YEAR. WHEREAS, the Board of Directors of the Vail Square Metropolitan District (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on October 23, 2017, 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 $ 8,000 DEBT SERVICE FUND: Debt Service Expenditures $878,237 Fund Transfers $6,099 TOTAL DEBT SERVICE FUND: $884,336 (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) VAIL SQUARE METROPOLITAN DISTRICT # 2 STATEMENT OF NET POSITION Printed:28-Dec-17 September 30, 2017 GENERAL GENERAL DEBT FIXED ASSETS FUND SERVICE & LT DEBT TOTAL ASSETS Csafe 19,761 196,959 0 216,720 Property Tax Receivable 0 7,803 0 7,803 Accounts Receivable 0 0 0 0 Prepaid Expenses 0 0 0 0 TOTAL ASSETS 19,761 204,762 0 224,523 LIABILITIES Accounts Payable 0 176,960 0 176,960 Deferred Property Tax Revenue 0 7,803 0 7,803 Accrued Interest Payable 0 0 0 0 Net Service and Capital Oblig - VSQ No. 1 9,949,518 9,949,518 TOTAL LIABILITIES 0 184,763 9,949,518 10,134,281 DEFERRED INFLOWS Deferred Property Tax Revenue 0 0 0 0 TOTAL DEFERRED INFLOWS 0 0 0 0 NET POSITION Net of Capital and Service Obligation 0 0 (9,949,518)(9,949,518) Fund Balance 19,761 20,000 0 39,760 TOTAL NET POSITION 19,761 20,000 (9,949,518)(9,909,758) TOTAL LIABILITIES, DEFERRED INFLOWS AND NET POSITION 19,761 204,762 0 224,523 = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.PAGE 1 VAIL SQUARE METROPOLITAN DISTRICT # 2 Printed: 12/28/17 Modified STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Accrual BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis Cal Yr 9 Months 9 Months GENERAL FUND Cal Yr 2017 Cal Yr Ended Ended Variance 2018 2016 Adopted 2017 09/30/17 09/30/17 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation - Net 14,014,620 13,935,230 13,935,230 13,182,060 Nov 2017 Final AV Assessed Valuation - TIF 10,800,480 11,069,090 11,069,090 11,147,930 Nov 2017 Final AV Total Gross AV 24,815,100 25,004,320 25,004,320 24,329,990 13%0.8%-2.7%Percent change REVENUES Vail Sq # 1 Interdstrict Contrib 0 0 0 0 0 0 0 Interest Income 0 0 0 0 0 0 0 TOTAL REVENUES 0 0 0 0 0 0 0 EXPENDITURES Audit 4,500 4,500 4,500 4,500 4,500 0 4,500 Insurance 2,441 2,625 2,750 2,743 2,625 (118)2,500 VSQ 1 Interdistrict Advance repayment 0 0 0 0 0 0 0 Contingency Allowance 0 1,000 0 0 0 0 1,000 TOTAL EXPENDITURES 6,941 8,125 7,250 7,243 7,125 (118)8,000 REVENUE OVER (UNDER) EXPEND.(6,941)(8,125)(7,250)(7,243)(7,125)(118)(8,000) OTHER SOURCES AND (USES) Xfer Net Int & SO tax fr DS Fund 5,899 6,201 6,201 4,588 4,200 388 6,099 TOTAL OTHER SOURCES & (USES) 5,899 6,201 6,201 4,588 4,200 388 6,099 FUND BALANCE - BEGINNING 23,458 21,686 22,416 22,416 21,686 730 21,367 FUND BALANCE - ENDING 22,416 19,762 21,367 19,761 18,761 1,000 19,466 = = = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.Page 2 VAIL SQUARE METROPOLITAN DISTRICT # 2 Printed: 12/28/17 Modified STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Accrual BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis Cal Yr 9 Months 9 Months DEBT SERVICE FUND Cal Yr 2017 Cal Yr Ended Ended Variance 2018 2016 Adopted 2017 09/30/17 09/30/17 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation -Net 14,014,620 13,935,230 13,935,230 13,182,060 Nov 2017 Final AV Assessed Valuation - TIF TOV URA 10,800,480 11,069,090 11,069,090 11,147,930 Nov 2017 Final AV Total Gross AV 24,815,100 25,004,320 25,004,320 24,329,990 13%0.8%-3%Percent change Mill Levy Rates IGA Services Mill Levy Rate 3.000 3.000 3.000 3.000 Capital Pledge Mill Levy Rate 32.000 32.000 32.000 32.000 Total Mill Levy Rate 35.000 35.000 35.000 35.000 REVENUES Prop Taxes-IGA Serv 42,043 41,806 41,806 41,137 41,806 (669)39,546 AV x Mill levy Prop Taxes-TIF IGA Serv 31,513 32,211 32,211 30,467 30,211 256 32,440 AV x Mill levy Prop Taxes-D/S Oblig 448,459 445,927 445,927 438,793 438,927 (134)421,826 AV x Mill levy Prop Taxes-TIF D/S Oblig 336,144 343,585 343,585 324,983 325,000 (17)346,032 AV x Mill levy Specific Ownership Taxes 41,148 43,176 43,176 29,817 28,784 1,033 41,992 5% of Prop tax Interest Income 2,372 2,500 2,500 2,027 1,787 240 2,500 TOTAL REVENUES 901,679 909,205 909,205 867,224 866,515 709 884,337 EXPENDITURES Xfer Prop Taxes to VSQ #1 - Serv Oblig 40,778 40,552 40,552 39,901 40,552 651 38,360 Service mills less Treas Fee Xfer Prop Taxes to VSQ #1 - Serv TIF TOV 31,513 32,211 32,211 30,468 30,211 (257)32,440 TOV URA Xfer Prop Taxes to VSQ #1 - D/S Oblig 434,969 432,550 432,550 425,610 425,759 149 409,171 DS mills less Treas Fee Xfer Prop Taxes to VSQ #1 - D/S TIF TOV 336,144 343,585 343,585 324,982 325,000 18 346,032 TOV URA Xfer Specific Ownership Tax - D/S 37,621 39,476 39,476 27,259 26,317 (942)38,393 IGA DS % of SO tax Treasurer's Fees 14,755 14,632 14,632 14,416 14,422 6 13,841 3% of Prop. Taxes TOTAL EXPENDITURES 895,781 903,004 903,004 862,636 862,261 (375)878,237 REVENUE OVER (UNDER) EXPEND.5,899 6,201 6,201 4,588 4,254 334 6,099 OTHER SOURCES/(USES) Xfer Net Int & SO tax to Gen Fund (5,899)(6,201)(6,201)(4,588)(4,200)(388)(6,099) TOTAL OTHER FINANCING SOURCES (5,899)(6,201)(6,201)(4,588)(4,200)(388)(6,099) FUND BALANCE - BEGINNING 20,000 20,000 20,000 20,000 20,000 0 20,000 FUND BALANCE - ENDING 20,000 20,000 20,000 20,000 20,054 (54)20,000 = = = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.Page 3 Page 1 of 4Form DLG 70 (rev 9/15) 115 County Tax entity code DOLA LGID/SID 65509 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Vail Square Metropolitan District No. 2 the Board of Directors of the Vail Square Metropolitan District No. 2 $24,329,990 $13,182,060 Submitted:12/8/2017 for budget/fiscal year 2018 . (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 0.000 mills -$ 2. (0.000)mills -$ SUBTOTAL FOR GENERAL OPERATING: (0.000)mills -$ 3.General Obligation Bonds and InterestJ 32.000 mills 421,825.92$ 4.Contractual ObligationsK 3.000 mills 39,546.18$ 5.Capital ExpendituresL 0.000 mills -$ 6.Refunds/AbatementsM 0.000 mills -$ 7.OtherN (specify): 0.000 mills -$ 0.000 mills -$ TOTAL:[]35.000 mills 461,372.10$ Daytime phone: (970) 926-6060 x8 Signed: Title:District Administrator (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 57E) (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)Kenneth J. 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 ntity's completed form whe Kenneth J. Marchett Page 2 of 4Form DLG 70 (rev 9/15) 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:The District entered into a Joint Funding Agreement to facilitate the provision of the Facilities in a timely, efficient and cost-effective manner sufficient to serve the anticipated development within the Financing Districts, the District determined that the Operating District (VSQMD No. 1) enter into a Loan Agreement dated as of July 23, 2008. In order to facilitate the borrowing of the Loan proceeds and in exchange for the Lender making the Loan (the proceeds of which are to be applied, in accordance with the Loan Agreement, to the provision of Facilities), the Financing Districts have entered into the Loan Agreement as additional obligors, and, by the terms of this Agreement, pledged certain revenues to the Lender and covenanted to take certain actions with respect to generating such revenues, for the benefit of the Lender; Series: 2008 Date of Issue: July 23, 2008 Coupon rate: Variable Maturity Date:December 1, 2023 Levy: 32.000 Mills Revenue: $421,825.92 2. Purpose of Issue: Series: Date of Issue: Coupon rate: Maturity Date: Levy: Revenue: CONTRACTSK: 3. Purpose of Contract: The District entered into an agreement for the implementation of principles and objectives set forth in the Service Plan regarding financing, construction, operation and maintenance of the facilities, and administration of the District's affairs pursuant to voter authorization approved at election in November 2005. Title: District Facilities Joint Financing, Construction and Service Agreement Date: July 21, 2008 Principal Amount: $20,000,000 Maturity Date: December 1, 2023 Levy: 3.000 Mills Revenue: $39,546.18 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 Vail Square Metropolitan District No. 2 VAIL SQUARE 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 January 15, 2018 Division of Local Government 1313 Sherman Street, Room 521 Denver, CO 80203 Filed electronically: dlg-filing@state.co.us RE: Vail Square Metropolitan District No. 3 Budget; LGID #65510 Attached is the 2018 Budget for the Vail Square Metropolitan District No. 3 in Eagle County, Colorado, submitted pursuant to Section 29-1-116, C.R.S. This Budget was adopted on October 23, 2017. If there are any questions on the budget, please contact Mr. Kenneth J. Marchetti, telephone number 970-926-6060, Ext 8. 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; 18.875 mills for general obligation debt; 3.000 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 $7,626,730, the total property tax revenue is $166,834.72. 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, ____________________________________ Title ________________________________ Enclosure(s) VAIL SQUARE METROPOLITAN DISTRICT No. 3 2018 BUDGET MESSAGE Vail Square 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 services of roads, drainage facilities, streetscape, water and sewer utilities mains. 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. 2018 BUDGET STRATEGY Vail Square Metropolitan District No.3 was formed in late 2005. The District has joined with Vail Square Metropolitan District No.1 and Vail Square Metropolitan District No. 2 in adopting a consolidated service plan. Under this consolidated service plan, Vail Square Metro District No.1 will be the “service district” and Vail Square Metro District Nos. 2 and 3 will be the “financing districts.” As such, Vail Square Metro District No.1 will be responsible for managing the construction and operation of facilities and improvements needed for the Vail Square Metro District Nos. 2 and 3 areas. The District and Vail Square Metro District No. 2 will be responsible for providing the funding and tax bases needed to support the financing plan for capital improvements. Vail Square Metropolitan District Nos. 2 and 3 anticipate utilizing the property taxes the y collect to pay for a portion of their obligations under the Joint Funding Agreement and the District Facilities Joint Financing, Construction and Service Agreement with Vail Square Metropolitan District No. 1. Page 1 of 5 RESOLUTIONS OF VAIL SQUARE METROPOLITAN DISTRICT NO. 3 TO ADOPT 2018 BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE VAIL SQUARE METROPOLITAN DISTRICT NO.3, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2018 AND ENDING ON THE LAST DAY OF DECEMBER 2018. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 3 (the “District”) has appointed a budget committee to prepare and submit a proposed 2018 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, 2017 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 VAIL SQUARE METROPOLITAN DISTRICT NO. 3 (CONTINUED) TO SET MILL LEVIES A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2017, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE VAIL SQUARE METROPOLITAN DISTRICT NO. 3, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2018 BUDGET YEAR. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 3, (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on October 23, 2017 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 $ 22,880.19 and; WHEREAS, the amount of money necessary to balance the budget for voter approved general obligation debt and interest is $143,954.53 and; WHEREAS, the 2017 net valuation for assessment for the District, as certified by the County Assessor is $7,626,730. 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 2018 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 2017. Section 2. That for the purposes of rendering a refund to its constituents during budget year 2018 there is hereby levied a temporary tax credit/mill levy reduction of 0.00 mills. Section 3. That for the purpose of meeting all capital expenditures of the District during the 2018 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 2017. Page 3 of 5 RESOLUTIONS OF VAIL SQUARE 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 2018 budget year, there is hereby levied a tax of 3.000 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2017. Section 5 That for the purpose of meeting all payments for general obligation debt and interest of the District during the 2018 budget year, there is hereby levied a tax of 18.875 mills upon each dollar of the total valuation for assessment of all taxable property within the District for the year 2017. 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 VAIL SQUARE 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 VAIL SQUARE METROPOLITAN DISTRICT NO. 3, TOWN OF VAIL, EAGLE COUNTY, COLORADO, FOR THE 2018 BUDGET YEAR. WHEREAS, the Board of Directors of the Vail Square Metropolitan District No. 3 (the “District”) has adopted the annual budget in accordance with the Local Government Budget Law of Colorado, on October 23, 2017, 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 $ 6,700 DEBT SERVICE FUND: Debt Service Expenditures $ 261,533 Fund Transfers $ 1,705 TOTAL DEBT SERVICE FUND $ 263,238 (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) VAIL SQUARE METROPOLITAN DISTRICT # 3 STATEMENT OF NET POSITION Printed:28-Dec-17 September 30, 2017 GENERAL GENERAL DEBT FIXED ASSETS FUND SERVICE & LT DEBT TOTAL ASSETS Csafe 1,515 87,476 0 88,991 Property Tax Receivable 0 0 0 0 Accounts Receivable 0 0 0 0 Prepaid Expenses 0 0 0 0 TOTAL ASSETS 1,515 87,476 0 88,991 LIABILITIES Accounts Payable 1,315 87,476 0 88,791 Accrued Interest Payable 0 0 0 0 Net Service & Capital Oblig - VSQ No. 1 0 2,037,853 2,037,853 TOTAL LIABILITIES 1,315 87,476 2,037,853 2,126,644 DEFERRED INFLOWS Deferred Property Tax Revenue 0 0 TOTAL DEFERRED INFLOWS 0 0 0 0 NET POSITION Net Capital and Service Obligation 0 0 (2,037,853)(2,037,853) Fund Balance 200 (0)0 200 TOTAL NET POSITION 200 (0)(2,037,853)(2,037,653) TOTAL LIABILITIES, DEFERRED INFLOWS AND NET POSITION 1,515 87,476 0 88,991 = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.PAGE 1 VAIL SQUARE METROPOLITAN DISTRICT # 3 Printed: 12/28/17 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Modified BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Accrual Cal Yr 9 Months 9 Months GENERAL FUND Cal Yr 2017 Cal Yr Ended Ended Variance 2018 2016 Adopted 2017 09/30/17 09/30/17 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation - Net 5,448,760 5,139,910 5,139,910 7,626,730 Nov 2017 Final AV Assessed Valuation - TIF 4,199,130 4,082,760 4,082,760 6,449,850 Nov 2017 Final AV Total Gross AV 9,647,890 9,222,670 9,222,670 14,076,580 12%-4%53%Percent change REVENUES Vail Sq # 1 InterDistrict Contrib 3,965 5,285 4,285 4,626 5,285 (659)4,995 Interest Income 0 0 0 0 0 0 0 TOTAL REVENUES 3,965 5,285 4,285 4,626 5,285 (659)4,995 EXPENDITURES Audit 3,200 3,200 3,200 3,200 3,200 0 3,200 Insurance 2,439 2,650 2,750 2,741 2,650 (91)2,500 Contingency Allowance 0 1,000 0 0 0 0 1,000 TOTAL EXPENDITURES 5,639 6,850 5,950 5,941 5,850 (91)6,700 REVENUE OVER (UNDER) EXPEND.(1,674)(1,565)(1,665)(1,315)(565)(750)(1,705) OTHER SOURCES AND (USES) Xfer Net Int & SO tax fr DS Fund 1,674 1,565 1,665 1,315 700 615 1,705 TOTAL OTHER SOURCES & (USES) 1,674 1,565 1,665 1,315 700 615 1,705 FUND BALANCE - BEGINNING 200 200 200 200 200 0 200 FUND BALANCE - ENDING 200 200 200 200 335 (135)200 = = = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.Page 2 VAIL SQUARE METROPOLITAN DISTRICT # 3 Printed: 12/28/17 Modified STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Accrual BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis Cal Yr 9 Months 9 Months DEBT SERVICE FUND Cal Yr 2017 Cal Yr Ended Ended Variance 2018 2016 Adopted 2017 09/30/17 09/30/17 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation - Net 5,448,760 5,139,910 5,139,910 7,626,730 Nov 2017 Final AV Assessed Valuation - TIF 4,199,130 4,082,760 4,082,760 6,449,850 Nov 2017 Final AV Total Gross AV 9,647,890 9,222,670 9,222,670 14,076,580 12%-4%53%Percent change Mill Levy Rates IGA Services Mill Levy Rate 3.000 3.000 3.000 3.000 Capital Pledge Mill Levy Rate 18.875 18.875 18.875 18.875 Total Mill Levy Rate 21.875 21.875 21.875 21.875 REVENUES Prop Taxes-IGA Serv 16,344 15,420 15,420 15,420 15,420 (0)22,880 AV x Mill levy Prop Taxes-TIF IGA Serv 12,223 11,881 11,881 11,881 11,881 0 18,769 AV x Mill levy Prop Taxes - D/S Oblig 102,832 97,016 97,016 97,016 97,016 (0)143,955 AV x Mill levy Prop Taxes - TIF D/S Oblig 76,904 74,750 74,750 74,751 74,750 0 118,089 AV x Mill levy Allowance for Potential Abatement (76,000)Estimate Specific Ownership Taxes 10,013 9,953 9,953 6,873 6,636 237 10,246 5% of Prop tax Interest Income 301 200 300 373 150 223 300 TOTAL REVENUES 218,617 209,220 209,320 206,313 205,853 460 238,239 EXPENDITURES Xfer Prop Taxes to VSQ #1 - Serv Oblig 15,854 14,957 14,957 14,957 14,957 0 22,194 Service mills less treas fee Xfer Prop Taxes to VSQ #1 - Serv TIF 12,223 11,881 11,881 11,881 11,881 (0)18,769 TOV URA Xfer allowance for abatement - service (10,400) Xfer Prop Taxes to VSQ #1 - D/S Oblig 99,746 94,105 94,105 94,105 94,106 0 139,636 DS mills less treas fee Xfer Prop Taxes to VSQ #1 - D/S TIF 76,904 74,750 74,750 74,751 74,750 (1)118,089 TOV URA Xfer allowance for abatement - D/S (65,600) Xfer Specific Ownership Tax - D/S 8,640 8,588 8,588 5,930 5,675 (255)8,841 IGA D/S % of SO Treasurer's Fees 3,576 3,373 3,373 3,373 3,373 (0)5,005 3% of Prop. Taxes Contingency 25,000 TOTAL EXPENDITURES 216,943 207,655 207,655 204,998 204,742 (256)261,533 REVENUE OVER (UNDER) EXPEND.1,674 1,565 1,665 1,315 1,111 204 (23,295) OTHER SOURCES/(USES) Xfer Int & Net SO tax to Gen Fund (1,674)(1,565)(1,665)(1,315)(700)(615)(1,705) TOTAL OTHER FINANCING SOURCES (1,674)(1,565)(1,665)(1,315)(700)(615)(1,705) FUND BALANCE - BEGINNING 0 0 0 0 0 0 0 Reverse Contingency 25,000 FUND BALANCE - ENDING 0 0 0 (0)411 (411)0 = = = = = No assurance is provided on these financial statements and substantially all disclosures required by GAAP have been omitted.Page 3 Page 1 of 4Form DLG 70 (rev 9/15) 116 County Tax entity code DOLA LGID/SID 65510 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Vail Square Metropolitan District No. 3 the Board of Directors of the Vail Square Metropolitan District No. 3 $14,076,580 $7,626,730 Submitted:12/8/2017 for budget/fiscal year 2018 . (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 0.000 mills -$ 2. (0.000)mills -$ SUBTOTAL FOR GENERAL OPERATING: (0.000)mills -$ 3.General Obligation Bonds and InterestJ 18.875 mills 143,954.53$ 4.Contractual ObligationsK 3.000 mills 22,880.19$ 5.Capital ExpendituresL 0.000 mills -$ 6.Refunds/AbatementsM 0.000 mills -$ 7.OtherN (specify): 0.000 mills -$ 0.000 mills -$ TOTAL:[]21.875 mills 166,834.72$ Daytime phone: (970) 926-6060 x8 Signed: Title:District Administrator (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 57E) (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)Kenneth J. 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 tity's completed form when Kenneth J. Marchett Page 2 of 4Form DLG 70 (rev 9/15) 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:The District entered into a Joint Funding Agreement to facilitate the provision of the Facilities in a timely, efficient and cost-effective manner sufficient to serve the anticipated development within the Financing Districts, the District determined that the Operating District (VSQMD No. 1) enter into a Loan Agreement dated as of July 23, 2008. In order to facilitate the borrowing of the Loan proceeds and in exchange for the Lender making the Loan (the proceeds of which are to be applied, in accordance with the Loan Agreement, to the provision of Facilities), the Financing Districts have entered into the Loan Agreement as additional obligors, and, by the terms of this Agreement, pledged certain revenues to the Lender and covenanted to take certain actions with respect to generating such revenues, for the benefit of the Lender; Series: 2008 Date of Issue: July 23, 2008 Coupon rate: Variable Maturity Date:December 1, 2023 Levy: 18.875 Mills Revenue: $143,954.53 2. Purpose of Issue: Series: Date of Issue: Coupon rate: Maturity Date: Levy: Revenue: CONTRACTSK: 3. Purpose of Contract: The District entered into an agreement for the implementation of principles and objectives set forth in the Service Plan regarding financing, construction, operation and maintenance of the facilities, and administration of the District's affairs pursuant to voter authorization approved at election in November 2005. Title: District Facilities Joint Financing, Construction and Service Agreement Date: July 21, 2008 Principal Amount: $20,000,000 Maturity Date: December 1, 2023 Levy: 3.000 Mills Revenue: $22,880.19 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 Vail Square Metropolitan District No. 3 0801.0024: 917064 EXHIBIT B 2018 Audits