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HomeMy WebLinkAbout2020 Consolidated Annual ReportCONFLUENCE METROPOLITAN DISTRICT AVON STATION METROPOLITAN DISTRICT 2020 CONSOLIDATED ANNUAL REPORT Pursuant to the Amended and Restated Consolidated Service Plan for Confluence Metropolitan District and Avon Station Metropolitan District (the “Districts”), the Districts are required to provide an annual report to the Town of Avon (the “Town”). For the year ending December 31, 2020, the Districts make the following report: A. Boundary changes made or proposed to the Districts’ boundaries as of December 31 of the prior year. Avon Station Metropolitan District was granted an Order of Exclusion on July 14th, 2020 and Confluence Metropolitan District was granted an Order of Inclusion on July 14th, 2020 for the Commercial Units excluded from Avon Station Metropolitan District and included into Confluence Metropolitan District. The Order of Exclusion and Order of Inclusion are attach hereto as Exhibit A. B. Intergovernmental Agreements with other governmental bodies entered into or proposed as of December 31 of the prior year. There were no intergovernmental agreements entered into or proposed in 2020. C. A list of all facilities and improvements constructed by the Districts that have been dedicated to and accepted by the Town as of December 31 of the prior year. No facilities or improvements were dedicated to the Town in 2020. D. The assessed valuation of the Districts for the current year. The assessed valuation of each district is as follows: Confluence Metropolitan District: $60 Avon Station Metropolitan District: $24,238,250 E. Current year budget including a description of the Public Improvements to be constructed in such year. Copies of the Districts’ 2021 budgets are attached hereto as Exhibit B. F. Audits of the Districts’ financial statements, for the year ending December 31, of the prior year. The 2020 annual audits for Confluence Metropolitan District and Avon Station Metropolitan District are attached hereto as Exhibit C. G. Notice of any uncured events of default by the Districts, which continue beyond a ninety (90) day period, under any debt instrument. The bonds have been refinanced and the default is no longer continuing. EXHIBIT A Avon Station Metropolitan District Order of Exclusion & Confluence Metropolitan District Order of Inclusion (Commercial Units) 1 DISTRICT COURT, EAGLE COUNTY, COLORADO Court Address: 855 Chambers Avenue P.O. Box 597 Eagle, CO 81631 Telephone: (970) 328-6373 ▲ COURT USE ONLY ▲ Petitioner: AVON STATION METROPOLITAN DISTRICT By the Court: Case Number: 98 CV 525 Division: 3 Courtroom: ORDER FOR EXCLUSION THIS MATTER comes before the Court pursuant to § 32-1-501(1), C.R.S., on Motion for an Order for Exclusion of property from the boundaries of Avon Station Metropolitan District, Town of Avon, Eagle County, Colorado (the “District”). This Court, being fully advised in the premises, and there being no objection filed by any person, hereby ORDERS: 1. That the real property set forth in Exhibit A, attached hereto and incorporated herein by this reference (the “Property”), shall be and is hereby excluded from the boundaries of the District. 2. Pursuant to § 32-1-503(1), C.R.S., the Property shall remain obligated for its proportionate share of the principal and interest on the outstanding bonded indebtedness of the District existing immediately prior to the effective date of this Order as follows: indebtedness under that certain Capital Pledge Agreement between the District, Confluence Metropolitan District, and U.S. Bank, n.a., dated May 1, 2007. 3. In accordance with § 32-1-503(1), C.R.S., the Property shall not become obligated for any property tax levied by the District for operating costs of the District nor for any bonded indebtedness issued after the date of this Order. 4. The District shall file this order in accordance with the provisions of § 32-1-105, C.R.S. GRANTED BY COURT 07/14/2020 RUSSELL HOLTON GRANGER District Court Judge DATE FILED: July 14, 2020 9:38 AM CASE NUMBER: 1998CV525 2 DONE AND EFFECTIVE THIS _____ day of ___________ 2020. BY THE COURT: ____________________________________ District Court Judge EXHIBIT A (Legal Description of Exclusion Property) Unit C-100 Unit C-101 Unit C-102 Unit C-103 Unit C-104 Unit C-105 Unit C-106 Unit C-107 Unit C-109 Unit C-110 Unit C-111 All as shown on the Final Plat and Condominium Map of Riverfront Resort & Spa, Lot 2, Riverfront Subdivision, Town of Avon, Eagle County, Colorado Recorded in the real property records of the Clerk and Recorder of Eagle County, Colorado on August 14, 2008, at Reception Number 200817218. EXHIBIT B 2021 Budgets AVON STATION METROPOLITAN DISTRICTSTATEMENT OF NET POSITION Printed: 29-Dec-20October 31, 2020GENERAL DEBT LONG TERMFUND SERVICEDEBTTOTALASSETS First Bank 6,172 6,172 Colotrust 67,845 56,920 124,765 Property Tax Receivable 2,997 2,997 Accounts Receivable 0 0 0 Prepaid Insurance 2,464 2,464TOTAL ASSETS 76,481 59,917 0 136,398LIABILITIES Accounts Payable 236 0 236 Deferred Property Tax 2,997 2,997 Capital & Service Oblig Payable to CFMD 28,520,311 28,520,3110TOTAL LIABILITIES 236 2,997 28,520,311 28,523,543NET POSITION Net of Capital and Service Obligation (28,520,311) (28,520,311) Fund Balance 76,246 56,920 133,166TOTAL NET POSITION 76,246 56,920 (28,520,311) (28,387,145)TOTAL LIABILITIES ANDNET POSITION 76,481 59,917 0 136,398No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = PAGE 1 AVON STATION METROPOLITAN DISTRICTPrinted: 29-Dec-20STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATEDModified Accrual BasisGENERAL FUNDCal YrCal Yr10 Months 10 MonthsCal Yr2020 2020 Ended EndedVariance 20212019 AdoptedForecast 10/31/20 10/31/20 Favorable Adopted BUDGETAuditedBudgetBudgetActualBudget(Unfav)Budget ASSUMPTIONSREVENUES Confluence Expense Reimbursement0 Transfer S.O. Tax from Debt Serv 52,52520,84026,34200019,700SO tax & int TOTAL REVENUES 52,52520,84026,34200019,700EXPENDITURES Insurance 2,600 3,000 3,000 2,653 3,000 347 3,000 Based on Prior Yrs Directors Fees & Payroll Taxes 969 2,250 2,250 1,507 1,650 143 2,250 (4 mtgs 5 dir) Elections 0 1,000 1,000 45 1,000 955 0 Audit 5,000 5,100 5,100 5,100 5,100 0 5,200 Developer Repayment 0 0 0 0 0 Office Overhead 52 500 500 67 50 (17) 500TOTAL EXPENDITURES 8,620 11,850 11,850 9,371 10,800 1,429 10,950REVENUE OVER (UNDER) EXPEND. 43,905 8,990 14,492 (9,371) (10,800) 1,429 8,750FUND BALANCE - BEGINNING 41,712 80,676 85,617 85,617 80,676 (4,941) 100,108FUND BALANCE - ENDING 85,617 89,666 100,108 76,246 69,876 6,369 108,858No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.= = = = = = PAGE 2 AVON STATION METROPOLITAN DISTRICTPrinted: 29-Dec-20STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATEDModified Accrual BasisDEBT SERVICE FUNDCal YrCal Yr10 Months 10 MonthsCal Yr2020 2020 Ended EndedVariance 20212019 AdoptedForecast 10/31/20 10/31/20 Favorable Adopted BUDGETAuditedBudgetBudgetActualBudget(Unfav)Budget ASSUMPTIONSAssessed Valuation3%Residential Assessment Rate 7.15% 7.15%Avon Station - NET AV 12,695,090 15,947,630 15,947,630 16,471,320 Nov 2020 Final AV Avon Station - TIF 5,785,000 7,095,300 7,095,300 7,766,930 Nov 2020 Final AV Gross AV 18,480,090 23,042,930 23,042,93024,238,250Percent change -0.5% 24.7% 24.7% 5.2% Percent changeServices/Operations Mill Levy Rate23.000 23.000 23.00023.000Serv/Ops Mill levyDebt Service Mill Levy Rate (gallagherized)42.596 42.572 42.572 42.780Debt Serv Mill levy 65.596 65.572 65.572 65.780REVENUES Property Taxes - 23 Mills Serv IGA 290,277 366,795 366,795 365,744 366,795 (1,051) 378,840 Property Taxes - Pledged DS 537,594 678,928 678,928 676,977 678,928 (1,951) 704,643 Allowance for potential Abatement (109,812) 0 0 0 0 Specific Ownership Taxes 65,449 52,286 67,972 55,943 39,215 16,728 54,174 5% of Prop tax Interest Income 4,451 2,500 2,500 2,295 2,083 211 758 1% of prop taxTOTAL REVENUES 897,772 990,698 1,116,196 1,100,959 1,087,022 13,937 1,138,415EXPENDITURES Treasurer's Fees 24,855 31,372 31,372 31,298 31,372 74 32,505 3% of Prop Tax Transfer Prop Tax - IGA Serv 281,563 355,792 355,792 354,766 355,792 1,025 367,475 23 Mills to CF Ops Transfer Prop Tax- IGA D/S 521,454 658,560 658,560 656,654 658,560 1,906 683,504 Net DS Mills to CF Transfer SO Tax - IGA D/S 42,501 33,946 44,130 36,320 26,143 (10,177) 35,232 Allowance for potential Abatement (106,518) 0 0 0 0 based on above less treas feTOTAL EXPENDITURES 870,372 973,152 1,089,854 1,079,039 1,071,867 (7,172) 1,118,716REVENUE OVER (UNDER) EXPEND.27,400 17,545 26,342 21,920 15,155 6,765 19,700OTHER FINANCING SOURCES/(USES) Xfer Net S.O. tax & Int to General Fund (52,525) (20,840) (26,342) 0 0 0 (19,700) SO tax, int - treas fee TOTAL OTHER FINANCING SOURCES (52,525) (20,840) (26,342) 0 0 0 (19,700)FUND BALANCE - BEGINNING 60,125 35,000 35,000 35,000 35,000 (0) 35,000FUND BALANCE - ENDING 35,000 31,706 35,000 56,920 50,155 6,765 35,000= = = = = = No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted.PAGE 3 38 County Tax entity code DOLA LGID/SID 19062 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Avon Station Metropolitan District the Board of Directors of the Avon Station Metropolitan District $24,238,250 $16,471,320 Submitted:12/8/2020 for budget/fiscal year 2021 (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 16.780 mills 276,388.75$ 2.mills -$ SUBTOTAL FOR GENERAL OPERATING: 16.780 mills 276,388.75$ 3.General Obligation Bonds and InterestJ 0.000 mills -$ 4.Contractual ObligationsK 49.000 mills 807,094.68$ 5.Capital ExpendituresL 0.000 mills -$ 6.Refunds/AbatementsM 0.000 mills -$ 7.OtherN (specify): 0.000 mills -$ 0.000 mills -$ TOTAL:[]65.780 mills 1,083,483.43$ 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 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 6/16)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: Series: Date of Issue: Coupon rate: Maturity Date: Levy: Revenue: 2. Purpose of Issue: Series: Date of Issue: Coupon rate: Maturity Date: Levy: Revenue: CONTRACTSK: 3. Purpose of Contract: To provide 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 Title: Second Amended and Restated District Facilities Construction and Services Agr Date: April 26, 2007 Principal Amount: Property Tax generated by 10.000 Mills Maturity Date: None Stated Levy: 6.22 Mills Revenue: $102,452 4. Purpose of Contract: To provide funds for repayment of Tax Supported Revenue Bonds Series 2007 issued by Confluence Metropolitan District Title: Avon Station Capital Pledge Agreement Date: May 1, 2007 Principal Amount: A portion of $24,665,000 Maturity Date: None Stated Levy: 42.780 Mills Revenue: $704,643 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 Avon Station Metropolitan District Form DLG 70 (rev 6/16)Page 2 of 4 CONFLUENCE METROPOLITAN DISTRICT Printed: 30-Dec-20 STATEMENT OF NET POSITION October 31, 2020 DEBT GONDOLA FIXED GENERAL SERVICE RESERVE ASSETS FUND FUND FUND & LT DEBT Total ASSETS Cash in Checking & Savings 390,867 (19,713) 666,024 1,037,179 Bond - Pledged Revenue Account 402,488 402,488 Bond- Interest Account 00 Bond-Reserve Account 57,400 57,400 Bond - Sinking Fund Account 00 Bond - Surplus Account 11 Bond - Guaranty Account 00 Accounts Receivable 10,513 0 10,513 Capital Assets 12,277,956 12,277,956 Accumulated Depreciation (4,310,433) (4,310,433) Prepaid Insurance 0 0 Capital/Serv Obligation from ASMD 608,105 608,105 TOTAL ASSETS 401,380 440,176 666,024 8,575,628 10,083,208 LIABILITIES Accounts Payable 46,034 0 0 46,034 Accrued Interest Payable 1,542,873 1,542,873 Developer Advance Payable 991,101 991,101 Developer Guaranty Payable 5,000,000 5,000,000 Bonds Payable 21,875,000 21,875,000 TOTAL LIABILITIES 46,034 0 0 29,408,974 29,455,007 NET POSITION Net Investment in Capital Assets (21,441,451) (21,441,451) Net of Capital & Service Obligation 608,105 608,105 Restricted Net Assets 440,176 440,176 Assigned Net Assets 666,024 666,024 Unrestricted Net Assets 355,347 355,347 TOTAL NET POSITION 355,347 440,176 666,024 (20,833,346) (19,371,799) TOTAL LIABILITIES AND NET POSITION 401,381 440,176 666,024 8,575,628 10,083,209 No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = PAGE 1 CONFLUENCE METROPOLITAN DISTRICT Printed: 30-Dec-20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual Basis GENERAL FUND Cal Yr 10 Months 10 Months Cal Yr 2020 Cal Yr Ended Ended Variance 2021 2019 Adopted 2020 10/31/20 10/31/20 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS REVENUES TOA Gondola Ops IGA Contrib 251,898 252,332 212,315 81,833 173,050 (91,217) 235,700 50% of gond ops TOA Public Plaza Ops IGA Contrib 34,645 42,100 42,100 31,538 30,000 1,538 43,363 50% of a portion of plaza ops Trnsfr Prop Taxes - ASMD - 23 mills 281,563 355,792 355,792 354,766 355,792 (1,025) 367,475 23 Mills Trnsfr Prop Taxes - ASMD IGA potential abatement (37,362) 0 0 potential abatement Trnsfr Prop Taxes - AS TOA URA 23 mills 127,929 158,296 158,296 82,122 158,296 (76,175) 173,280 23 Mills Trnsfr Prop Taxes - Mtn Vista 5 Mills 14,254 18,569 18,569 18,563 18,569 (6) 18,198 5 Mills Misc Income 207 2,985 2,982 0 2,982 Holy X equity refund Interest 9,588 3,000 3,000 2,988 2,500 488 1,000 TOTAL REVENUES 720,084 792,727 793,057 574,793 738,207 (163,414) 839,016 EXPENDITURES General & Admin Insurance 40,430 42,500 42,625 42,622 42,500 (122) 46,100 Pool & Travelers BMProp Sept Directors Fees & Payroll Taxes 969 2,250 2,250 1,507 1,625 118 2,250 4 mtgs 5 directors Accounting & Administration 25,583 25,750 30,000 20,475 21,458 984 26,000 Based on Prior Yrs Audit 7,150 7,400 7,300 7,300 7,400 100 7,650 Elections 65 1,500 10,000 5,919 1,500 (4,419) 0 Office Overhead 43 250 250 103 95 (8) 250 Legal 11,170 21,000 30,000 20,893 17,500 (3,393) 25,000 Based on Prior Yrs Special Proj - bond refi planning 0 0 60,000 35,661 0 (35,661) 0 Operations: Gondola Ops & Maint 339,086 330,865 225,000 184,157 254,535 70,378 300,000 based on VR budget Gondola Utilities 23,676 31,000 25,000 18,697 24,683 5,986 27,500 Gondola Stop Gap Insurance 40,067 41,500 40,380 40,376 41,500 1,124 42,500 TCW Admiral Sept Gondola Mgmt - VR 75,000 75,000 75,000 56,250 62,500 6,250 75,000 based on VR budget Gondola Reserve- Xfer 22,000 22,000 55,000 0 0 0 22,000 CDOT Lease - thru 2037 4,164 4,300 4,250 0 0 0 4,400 per agreement Public Plaza & Restrooms O&M -TOA cost sha 70,765 70,000 70,000 59,601 58,333 (1,268) 70,000 based on EW budget Plaza Reserve Xfer 14,500 14,500 14,500 0 0 0 14,500 RR Fence Staining 0 15,000 0 0 0 0 15,000 every other year District Landscape, Entry Monument, O&M 38,199 60,000 60,000 47,163 40,850 (6,313) 60,000 Contingency 0 10,000 23,260 0 0 0 15,000 TOTAL EXPENDITURES 712,866 774,815 774,815 540,725 574,480 33,755 753,150 REVENUE OVER (UNDER) EXPEND. 7,219 17,913 18,242 34,068 163,727 (129,658) 85,866 FUND BALANCE - BEGINNING 314,060 306,220 321,279 321,279 306,220 15,058 339,521 FUND BALANCE - ENDING 321,279 324,133 339,521 355,347 469,947 (114,600) 425,387 No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = PAGE 2 CONFLUENCE METROPOLITAN DISTRICT Printed: 30-Dec-20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual Basis GONDOLA/CAPITAL RESERVE FUND Cal Yr 10 Months 10 Months Cal Yr 2020 Cal Yr Ended Ended Variance 2021 2019 Adopted 2020 10/31/20 10/31/20 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS REVENUES Xfer from General Fund - Gondola 22,000 22,000 55,000 0 0 0 22,000 Xfer from General Fund - Plaza 14,500 14,500 14,500 0 0 0 14,500 Interest Income 14,699 12,000 5,000 4,761 10,000 (5,239) 1,000 TOTAL REVENUES 51,199 48,500 74,500 4,761 10,000 (5,239) 37,500 EXPENDITURES Gondola Agamatic 108 Grip rep (2020-23) 144,000 0 0 0 Cabin Wheels 0 Gearbox Rebuild (2024-27) Bullwheel Bearings (2021-22)40,000 Rope Replacement Materials (4,200 Ft) Rope Replacement Contractor (2025-30) Drive Replacement - Drive (2021-23)60,000 Drive Replacement - Commisioning (2021-23) 30,000 Terminal Painting Plaza Upper Terminal Plaza 10,000 0 0 0 Staining Cedar siding Public Plaza 0 Other Entry Monuments Fence Gondola Maintenance Facility TOTAL EXPENDITURES 0 154,000 0 0 0 0 130,000 REVENUE OVER (UNDER) EXPEND. 51,199 (105,500) 74,500 4,761 10,000 (5,239) (92,500) FUND BALANCE - BEGINNING 610,064 661,314 661,263 661,263 661,314 (51) 735,763 FUND BALANCE - ENDING 661,263 555,814 735,763 666,024 671,314 (5,290) 643,263 No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = = Components of Fund Balance Gondola Reserve 534,538 412,538 589,538 Plaza Reserve 87,000 91,500 101,500 Unrestricted 39,725 51,776 44,725 661,263 555,814 735,763 PAGE 3 CONFLUENCE METROPOLITAN DISTRICT Printed: 30-Dec-20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Modified Accrual Basis DEBT SERVICE FUND Cal Yr 10 Months 10 Months Cal Yr 2020 Cal Yr Ended Ended Variance 2021 2019 Adopted 2020 10/31/20 10/31/20 Favorable Adopted BUDGET Audited Budget Forecast Actual Budget (Unfav)Budget ASSUMPTIONS Assessed Valuation Mountain Vista - information purposes only 2,991,070 3,713,890 3,713,890 3,639,530 Nov 2020 Final AV Confluence 30 40 40 40 Nov 2020 Final AV Confluence - TIF 10 20 20 20 Nov 2020 Final AV Avon Station 12,695,090 15,947,630 15,947,630 16,471,320 Nov 2020 Final AV Avon Station - TIF 5,785,000 7,095,300 7,095,300 7,766,930 Nov 2020 Final AV REVENUES Trnsfr Prop Taxes - ASMD IGA 521,454 658,560 658,560 656,654 658,560 (1,906) 683,504 42.780 mills of 65.780mills Trnsfr Prop Taxes - ASMD IGA potential abatement (69,156) 0 0 potential abatement Trnsfr Prop Taxes - AS TOA URA 236,863 277,899 293,002 152,003 277,899 (125,896) 322,301 Trnsfr Prop Taxes - ASMD IGA - SO Tax 42,501 33,946 44,130 36,320 26,143 10,177 35,232 Trnsfr Prop Taxes - Mtn Vista IGA 60,303 79,306 79,306 79,279 79,306 (27) 0 DS Obligation expired 02-23-20 Interest Income 11,572 1,000 13,339 517 833 (317) 0 TOTAL REVENUES 872,692 981,556 1,088,337 924,773 1,042,742 (117,968) 1,041,037 EXPENDITURES Bond Interest - 2007 Bonds 1,187,483 1,066,672 1,187,482 593,741 593,741 (0) 184,720 Bond Principal - 2007 Bonds 0 0 0 0 0 0 0 Bond Interest - 2020A GO Refund Bonds 0 0 0 0 475,755 Bond Principal - 2020A GO Refund Bonds 0 0 0 0 0 Bond Interest - 2020B Sub GO Ref Bonds 418,580 Bond Principal - 2020 Sub GO Ref Bonds Bond Paying Agent Fees 17,153 10,000 10,000 0 0 0 10,000 Contingency 0 0 0 140,000 TOTAL EXPENDITURES 1,204,635 1,076,672 1,197,482 593,741 593,741 (0) 1,229,055 REVENUE OVER (UNDER) EXPEND. (331,943) (95,116) (109,145) 331,032 449,001 (117,969) (188,017) OTHER FINANCING SOURCES and (USES) Proceeds from Refi G.O. Bonds/Dev. Loan 0 0 0 0 0 16,500,000 Proceeds from Refi G.O. Subordinate Bonds 6,355,000 Reserve, insurance and Cost of Issuance 0 0 0 0 0 (791,700) Payoff of 2007 bonds (21,875,000) TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 0 188,300 FUND BALANCE - BEGINNING 441,087 95,116 109,144 109,144 95,116 14,028 (0) Reverse contingency 0 0 0 0 FUND BALANCE - ENDING 109,144 (0) (0) 440,176 544,117 (103,941) 282 No assurance provided on these financial statements; substantially all disclosures required by GAAP omitted. = = = = = 2007 Bond Principal Balance 21,875,000 21,875,000 Components of Fund Balance: Debt Service Reserve Fund 57,106 0 (0) 57,400 Guaranty Fund Reserve 0 0 0 0 Surplus Fund 0 0 0 1 Restricted for future debt service 52,038 (0) 0 382,775 Total 109,144 0 0 440,176 = PAGE 4 37 County Tax entity code DOLA LGID/SID 19063 TO: County Commissioners1 of Eagle County , Colorado. On behalf of the Confluence Metropolitan District the Board of Directors of the Confluence Metropolitan District $60 $40 Submitted:12/8/2020 for budget/fiscal year 2021 (not later than Dec 15) (mm/dd/yyyy)(yyyy) PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2 1.General Operating ExpensesH 0.000 mills -$ 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 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 6/16)Page 1 of 4 EXHIBIT C 2020 Audits AVON STATION METROPOLITAN DISTRICT FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS December 31, 2020 TABLE OF CONTENTS REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 6 Statement of Activities 7 Fund Financial Statements Balance Sheet – Governmental Funds 8 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 9 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Funds – to the Statement of Activities 11 Notes to the Financial Statements 12 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 23 Notes to Required Supplementary Information 24 Other Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Debt Service Fund 25 Summary of Assessed Valuation, Mill Levy, and Property Tax Collections 26 2499 Hwy. 6&50 www.csdcpa.com 970-245-3000 Grand Junction, CO 81505 e-mail info @ csdcpa.com FAX 970-242-4716 TOLL FREE 877-245-8080 INDEPENDENT AUDITOR’S REPORT May 29, 2021 To the Board of Directors and Management Avon Station Metropolitan District c/o Marchetti & Weaver LLC 28 Second Street, Suite 21300 Edwards, CO 81632 We have audited the accompanying financial statements of the governmental activities, and each major fund of Avon Station Metropolitan District, as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Avon Station Metropolitan District, as of December 31, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Avon Station Metropolitan District Page Two Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and general fund budgetary comparison information on pages 3–5 and 23 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Avon Station Metropolitan District’s basic financial statements. The schedule of revenues, expenditures and changes in fund balance – budget and actual – debt service fund is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of revenues, expenditures and changes in fund balance – budget and actual – debt service fund is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of revenues, expenditures and changes in fund balance – budget and actual – debt service fund is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The summary of assessed valuation, mill levy, and property tax collection has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Chadwick, Steinkirchner, Davis & Co., P.C. - 3 - Avon Station Metropolitan District Management’s Discussion and Analysis December 31, 2020 As management of Avon Station Metropolitan District (the “District”), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended December 31, 2020 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains supplementary information presented after the notes to the financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the District’s assets, deferred outflows, liabilities, and deferred inflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The governmental activity of the District is primarily financing construction, operation, and maintenance of the basic public infrastructure that is performed by Confluence Metropolitan District. There are no business-type activities within the District. The government-wide financial statements can be found on pages 6 and 7 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District currently has two funds, the General Fund and the Debt Service Fund, both of which are governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. - 4 - Overview of the Financial Statements (continued) Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements can be found on pages 12 through 22 of this report. Government-wide Financial Analysis. A condensed comparative summary of the District’s government-wide assets, liabilities, deferred inflows, net position, revenues and expenditures follows: The District is the “financing district” in a dual district structure whereby the District is financing the cost of constructing, operating and maintaining the infrastructure being built and operated by Confluence Metropolitan District (CMD). This infrastructure is being constructed to benefit the constituents of Avon Station Metropolitan District (ASMD). The District entered into a District Facilities Construction and Service Agreement with CMD which has subsequently been amended. Pursuant to this agreement, as amended, CMD is obligated to construct and provide the initial financing for the primary infrastructure for the ASMD area. ASMD will ultimately pay a “capital obligation” to reimburse CMD for the costs to 2020 2019 Assets: Current and other assets 1,233,455$ 1,177,369$ Long-term assets - - Total Assets 1,233,455 1,177,369 Liabilities and Deferred Inflows: Current, other liabilities and Deferred Inflows 1,094,487 1,056,753 Long-term obligations payable 28,537,582 28,520,311 Total Liabilities and Deferred Inflows 29,632,069 29,577,064 Net Assets: Restricted 310 259 Unrestricted (28,398,924) (28,399,954) Total Net Assets (28,398,614)$ (28,399,695)$ Revenues: Operating contributions -$ -$ General revenues: Property taxes 1,045,742 827,871 Other taxes 75,015 65,449 Interest and other revenue 2,383 4,452 Total Revenues 1,123,140 897,772 Expenses: General government 41,734 33,475 Intergovernmental agreement 1,080,325 1,171,077 Total Expenses 1,122,059 1,204,552 Change in Net Position 1,081 (306,780) Net Position - Beginning (28,399,695) (28,092,915) Net Position - Ending (28,398,614)$ (28,399,695)$ Governmental Activities Avon Station Metropolitan District Avon Station Metropolitan District's Change in Net Position Statement of Net Position - 5 - construct the infrastructure. ASMD will also pay a “service obligation” to reimburse CMD for the operating costs associated with administering and maintaining the assets. Government-wide Financial Analysis (continued) The majority of the District’s assets consist of property taxes receivable, representing those taxes levied in 2020 that will be collected in 2021. The District has an obligation to pay Confluence for the cost of constructing, operating, and maintaining the infrastructure assets and these obligations are reflected as long-term obligations on the District’s government-wide balance sheet. The District’s primary revenue sources were property taxes collected. These revenues have been used to pay the expenses of the District. The majority of the District’s expenses relate to the transfer of property taxes collected to Confluence Metropolitan District which are used to reduce the capital and service obligations owed. Financial Analysis of the District’s Funds As mentioned earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near- term inflows, outflows, and balances of expendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District’s governmental funds reported a combined ending fund balance of $138,968 which reflects an increase of $18,352 from 2019. Budget Variances. The District expenditures were similar to budgeted results. Details can be seen on pages 23 and 25. Capital assets. As stated above, the infrastructure in the District is being constructed and maintained by Confluence Metropolitan District. Any assets constructed with funding from or at the direction of CMD that are not dedicated to other governmental entities remain with CMD for ownership, operation and maintenance. Long-term debts. The District’s remaining capital and service obligation to Confluence for the balance of the cost of the infrastructure incurred through December 31, 2020 is $28,537,582. Additional information can be found in the Notes to the Financial Statement on page 20. Economic Factors and Next Year’s Budget. It is anticipated COVID-19 will have impacts on the economy as a whole which will include financial impacts to the District, however the extent of such impact remains unknown at this time. Request for Information This financial report is designed to provide a general overview of the District’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Marchetti & Weaver LLC, 28 Second Street, Suite 213, Edwards, CO 81632 or you may call (970) 926-6060. Assets Current Assets Cash and cash equivalents 141,452$ Amounts due from Eagle County 6,056 Property taxes receivable 1,083,483 Prepaid expense 2,464 Total Assets 1,233,455 Liabilities Current liabilities Accrued payroll expenses 352 Due to Confluence Metropolitan District 10,652 Total Current Liabilities 11,004 Noncurrent Liabilities Capital and Service Obligations Payable to Confluence Metropolitan District 28,537,582 Total Noncurrent Liabilities 28,537,582 Total Liabilities 28,548,586 Deferred Inflows of Resources Property taxes 1,083,483 Net Position Restricted for emergencies 310 Unrestricted (28,398,924) Total Net Position (28,398,614)$ The accompanying notes are an integral part of these financial statements. Avon Station Metropolitan District STATEMENT OF NET POSITION December 31, 2020 - 6 - Program Charges for Operating Capital Net (Expense)Expenses Services Contributions Contributions RevenueGovernmental OperationsGeneral government 41,734$ -$ -$ -$ (41,734)$ Intergovernmental agreement 1,080,325 - - - (1,080,325) Totals 1,122,059$ -$ -$ -$ (1,122,059) General RevenuesProperty taxes 1,045,742 Specific ownership taxes 75,015 Interest income 2,383 Total General Revenues 1,123,140 Change in Net Position 1,081 Net Position, beginning of year (28,399,695) Net Position, end of year (28,398,614)$ The accompanying notes are an integral part of these financial statements.Program RevenueFor the year ended December 31, 2020STATEMENT OF ACTIVITIESAvon Station Metropolitan District- 7 - Total Debt Governmental General Service Funds Assets Equity in pooled cash 94,660$ 46,792$ 141,452$ Amounts due from Eagle County - 6,056 6,056 Property taxes receivable - 1,083,483 1,083,483 Prepaid expense 2,464 - 2,464 Total Assets 97,124$ 1,136,331$ 1,233,455$ Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accrued payroll expenses 352$ -$ 352$ Due to Confluence Metropolitan District - 10,652 10,652 Total Liabilities 352 10,652 11,004 Deferred Inflows of Resources Property taxes - 1,083,483 1,083,483 Total Deferred Inflows of Resources - 1,083,483 1,083,483 Fund Balances Nonspendable - prepaid expense 2,464 - 2,464 Restricted for emergencies 310 - 310 Assigned for debt services - 42,196 42,196 Unassigned 93,998 - 93,998 Total fund balances 96,772 42,196 138,968 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 97,124$ 1,136,331$ 1,233,455$ The accompanying notes are an integral part of these financial statements. Avon Station Metropolitan District BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2020 - 8 - Reconciliation to the Statement of Net Position Total Fund Balances 138,968$ Amounts reported for governmental activities in the Statement of Net Position are different because: Long-term liabilities, including capital and service obligations, are not due and payable in the current period and, therefore, are not reported in the governmental funds. (28,537,582) Change in net position of governmental activities (28,398,614)$ The accompanying notes are an integral part of these financial statements. Avon Station Metropolitan District RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS December 31, 2020 TO THE STATEMENT OF NET POSITION - 9 - Total Debt Governmental General Service Funds Revenue Property taxes -$ 1,045,742$ 1,045,742$ Specific ownership taxes - 75,015 75,015 Interest income - 2,383 2,383 Total Revenue - 1,123,140 1,123,140 Expenditures General government Audit 5,100 - 5,100 Director's fees 2,300 - 2,300 Insurance 2,653 - 2,653 Treasurer's fees - 31,390 31,390 Election 45 - 45 Other 246 - 246 Intergovernmental agreement Capital obligation payments to Confluence Metropolitan District - 707,261 707,261 Service obligation payments to Confluence Metropolitan District - 355,793 355,793 Total expenditures 10,344 1,094,444 1,104,788 Revenues Over (Under) Expenditures (10,344) 28,696 18,352 Other Financing Sources (Uses) Transfers in 21,500 - 21,500 Transfers out - (21,500) (21,500) Total Other Financing Sources (Uses) 21,500 (21,500) - Revenues and Other Financing Sources (Uses) Over (Under) Expenditures 11,156 7,196 18,352 Fund Balance, beginning of year 85,616 35,000 120,616 Fund Balance, end of year 96,772$ 42,196$ 138,968$ Avon Station Metropolitan District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS For the year ended December 31, 2020 The accompanying notes are an integral part of these financial statements. - 10 - Reconciliation to the Statement of Activities Total net change in fund balances - governmental funds 18,352$ Amounts reported for governmental activities in the Statement of Activities are different because: Some revenues and expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported in the governmental funds. This amount represents the net increase in the capital and service obligation owed to Confluence Metropolitan District for the year. (17,271) Change in net position of governmental activities 1,081$ . Avon Station Metropolitan District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS - TO THE For the year ended December 31, 2020 STATEMENT OF ACTIVITIES The accompanying notes are an integral part of these financial statements. - 11 - Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 12 - NOTE A – DEFINITION OF REPORTING ENTITY Avon Station Metropolitan District (ASMD), a quasi-municipal organization, was organized on February 8, 1999, and is governed pursuant to provisions of the Colorado Special District Act. The District’s service area is located in Eagle County, Colorado. The District was established as part of a dual district structure with the Confluence Metropolitan District (CMD). The District is considered the financing district and was established to provide funding and tax base for capital improvements that will benefit the District. The capital improvements are owned and maintained by Confluence Metropolitan District, the Service District (see Note F). The District has no employees and all services are contracted. The District follows the Governmental Accounting Standards Board (GASB) accounting pronouncements which provide guidance for determining which governmental activities, organizations and functions should be included within the financial reporting entity. GASB pronouncements set forth the financial accountability of a governmental organization’s elected governing body as the basic criterion for including a possible component governmental organization in a primary government’s legal entity. Financial accountability includes, but is not limited to, appointment of a voting majority of the organization’s governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens and fiscal dependency. 015of any other primary governmental entity. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies of the District are as follows: Basis of Presentation The District’s basic financial statements consist of government-wide statements, including a Statement of Net Position and a Statement of Activities, and fund financial statements which provide a more detailed level of financial information. Government-wide Financial Statements The Statement of Net Position and the Statement of Activities display information about the District as a whole. These statements include the financial activities of the primary government. The Statement of Net Position presents the financial condition of the governmental activities at year-end. The Statement of Activities presents a comparison between program expenses and the program revenues for each program or function of the District’s governmental activities. Program expenses are those that are Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 13 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Basis of Presentation (continued) specifically associated with a service, program, or department; and, therefore, clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operations or capital requirements of a particular program, and interest earned on grants that is required to be used to support a particular program. Revenues which are not classified as program revenues are presented as general revenues of the District, with certain limited exceptions. The comparison of program expenses with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of the District. Fund Financial Statements During the year, the District segregates transactions related to certain District functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the District at this more detailed level. The focus of governmental fund financial statements is on major funds. Fund Accounting The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. Fund types used by the District are described below. Government Fund Types General Fund – the General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund – The Debt Service Fund is used to account for all financial resources for the payment of long-term obligations due to Confluence Metropolitan District. Measurement Focus Government-wide Financial Statements The government-wide financial statements are prepared using the economic resources measurement focus. All assets, liabilities, and deferred inflows of resources associated with the operation of the District are included in the Statement of Net Position. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 14 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Measurement Focus (continued) Fund Financial Statements All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances reports on the sources (revenues and other financing sources) and uses (expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government- wide statements and the statements for governmental funds. Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, the recording of unavailable revenue, and in the presentation of expenses versus expenditures. Revenues Revenue resulting from an exchange transaction, in which each party gives and receives essentially the same value, is recorded in the fiscal year in which the resources are both measurable and available to finance expenditures of the fiscal period, typically within sixty days of realization. Non-exchange transactions, in which the District receives value without directly giving value in return, include property taxes, grants, entitlements, and donations. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. On a modified accrual basis, revenue from non-exchange transactions must be available before it can be recognized. Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred. The measurement focus of governmental funds accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in the governmental funds. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 15 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Budgets In accordance with State Budget Law, the District’s Board of Directors holds a public hearing in the fall each year to approve the budget and appropriate the funds for the ensuing year. The appropriation is at the total fund expenditures level and lapses at year-end. The District’s Board of Directors can modify the budget by line item within the total appropriation without notification. The appropriation can only be modified upon completion of notification and publication requirements. The budget includes each fund on its basis of accounting unless otherwise indicated. Encumbrance accounting (open purchase orders, contracts in process and other commitments for the expenditures of funds in future periods) is not used by the District for budget or financial reporting purposes. Cash Equivalents The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, investment pools and short-term investments with an original maturity of three months or less from the date of acquisition. Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities, and long-term obligations are reported in the government-wide financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources, are reported as obligation of the funds. Long-term obligations are recognized as a liability on the governmental fund financial statements when due. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenses/expenditure) until then. The District has no amounts that qualify as deferred outflows of resources as of December 31, 2020. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 16 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Deferred Outflows/Inflows of Resources represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from property taxes for which there is an enforceable legal claim as of December 31, 2020, but which are levied to financial year 2021. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Net Position In the government-wide financial statements, net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District, or through external restrictions imposed by creditors, grantors, or laws, or regulations of other governments. The District applies restricted resources first when an expense is incurred for the purpose for which both restricted and unrestricted net position are available. Fund Balances In the fund financial statements the following classifications describe the relative strength of the spending constraints: Non-spendable fund balance – The portion of fund balance that cannot be spent because it is either not in spendable form (such as prepaid expenses) or it is legally or contractually required to be maintained intact. Restricted fund balance – The portion of fund balance constrained to being used for a specific purpose by external parties (such as grantors or bondholders), constitutional provisions or enabling legislation. The District’s restricted fund balance represents amount reserved for emergencies under the Colorado State Constitution. A restriction of $310 of the General Fund’s fund balance has been made in compliance with this requirement. Committed fund balance – the portion of fund balance constrained for specific purposes according to limitations imposed by the Board of Directors prior to the end of the fiscal year. The constraint may be removed or changed only through formal action of the Board of Directors. The District has no committed fund balance. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 17 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Fund Balances (continued) Assigned fund balance – The portion of fund balance set aside for planned or intended purposes. The intended use may be expressed by the Board of Directors or other individuals authorized to assign funds to be used for a specific purpose. This classification is necessary to indicate that those funds are, at a minimum, intended to be used for the purpose of that particular fund. The fund balance in the District’s debt service fund is assigned for capital and service obligations. Unassigned fund balance – The residual portion of fund balance that does not meet any of the above criteria. The District will only report a positive unassigned fund balance in the General Fund. If both restricted and unrestricted amounts of fund balance are available for use when expenditure is made, it is the District’s policy to use restricted amounts first. Unrestricted fund balance will be used in the following order: committed, assigned, and then unassigned. Property Taxes Property taxes are levied by the District Board of Directors. The levy is based on assessed valuation determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners to put the tax lien on the individual property as of January 1 of the following year. The County treasurer collects the determined taxes during the ensuing calendar year. The taxes are payable by April or if in equal installments, at the taxpayers’ election, in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are normally held in November or December. The County Treasurer remits the taxes collected monthly to the District. Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred inflows of resources in the year there is an enforceable lien placed on the property and recognized as revenue in the period for which they are levied. Estimates The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 18 - NOTE C – CASH AND INVESTMENTS Deposits At December 31, 2020, the District’s cash deposits had a carrying value of $5,316 and a corresponding bank balance of $5,501, all of which was FDIC insured. Deposits are exposed to custodial credit risk (the risk that, in the event of the failure of a depository financial institution, the government would not be able to recover deposits or would not be able to recover collateral securities that are in the possession of an outside party), if they are not covered by depository insurance and are collateralized with securities held by the pledging financial institution, except for deposits collateralized by certain types of collateral pools including a single financial institution collateral pool where the fair value of the pool is equal to or exceeds all uninsured public deposits held by the financial institution (e.g. deposits insured by The Public Deposit Protection Act (PDPA). Accordingly, none of the District’s deposits at December 31, 2020, are deemed to be exposed to custodial credit risk. The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts on deposit in excess off federal insurance levels must be collateralized. The eligible collateral is specified by PDPA. PDPA allows the institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. Investments Colorado Statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include:  Obligations of the United States and certain United States government agency securities  General obligation and revenue bonds of Unites States local government entities  Bankers’ acceptances of certain banks  Commercial paper  Written repurchase agreements collateralized by certain authorized securities  Certain money market funds  Local government investment pools Local Government Investment Pools – As of December 31, 2020, the District had $136,136 invested in the Colorado Local Government Liquid Asset Trust (ColoTrust), a local government investment pool. As an investment pool, Colotrust operates under the Colorado Revised Statutes (24-75-701) and is overseen by the Colorado Securities Commissioner. Colotrust invests in securities that are specified by the Colorado Revised Statutes (24-75-601). Authorized securities include US Treasuries, US Agencies, commercial Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 19 - NOTE C – CASH AND INVESTMENTS - CONTINUED Investments (continued) paper (rated A1 or better) and bank deposits (collateralized through PDPA). Colotrust operates similar to a 2a-7-like money market fund with a share value equal to $1.00 and a maximum weighted average maturity of 60 days. Colotrust is rated AAA by the Standard & Poor’s Corporation. A designated custodial bank provides banking services and trust custody for securities held on behalf of the participating governments in Colotrust. The custodian’s internal records identify the investments owned by the participating governments. NOTE D – LONG-TERM LIABILITIES Authorized Debt At December 31, 2020, the District had authorized but unissued general obligation debt and contractual obligations for the following detailed purposes: Transportation $ 27,500,000 Parks and recreation 8,100,000 Streets 7,500,000 Television 1,500,000 Sewer 500,000 Water 500,000 Traffic and safety 500,000 Fire protection 500,000 Mosquito and pest control 100,000 Operation and maintenance 1,300,000 Contractual obligations 93,600,000 $ 141,600,000 NOTE E – RELATED PARTIES A majority of the members of the Board of Directors of the District are employees of East West Partners (the Developer) or related entities. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 20 - NOTE F – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES District Facilities Construction and Service Agreement ASMD has entered into a second Amended and Restated Joint Facilities Construction and Service Agreement with Confluence Metropolitan District (CMD) dated April 26, 2007. Under the agreement, ASMD is to provide funding and the necessary tax base for financing the construction, operation, and maintenance of the public improvements that benefit both Districts. ASMD may also obtain financing for the construction of the public improvements and pay the proceeds to the CMD. CMD will manage the construction and operation of the public improvements, and own, operate, and maintain the public improvements pursuant to a long-term operations and maintenance program. Under the agreement, ASMD is required to pay CMD all revenue raised from mill levies assessed by ASMD to offset the operating expenses and construction costs incurred by CMD for provisions of services to property within ASMD. ASMD has assigned all revenue raised from mill levies assessed by AMSD to CMD in order to offset the expenses of the construction of the public improvement and ASMD’s costs of operation and maintenance of such public improvements. The Agreement remains in force until all terms and conditions have been performed in their entirety. During 2020 ASMD paid $1,063,054 to CMD in accordance with this agreement. ASMD has a service and capital obligation to Confluence Metropolitan District pursuant to the agreement for costs incurred in excess of funds received. The agreement does not establish specific payment dates for these obligations. The capital and service obligations total $28,537,582 at December 31, 2020. Capital Pledge Agreement On May 1, 2007 the District entered into a capital pledge agreement with CMD and the Trustee whereby Avon Station Metropolitan District has pledged certain revenues to assist in the repayment of the Confluence Metropolitan District bonds to the extent of the pledged revenues. Intergovernmental Agreement with Avon Urban Renewal Authority The District entered into an Intergovernmental Agreement with the Avon Urban Renewal Authority (the “Authority”) and Confluence Metropolitan District concerning incremental taxes on October 9, 2007. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 21 - NOTE F – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES – CONTINUED Intergovernmental Agreement with Avon Urban Renewal Authority (continued) Under the agreement the Authority agreed to remit to the Districts the incremental revenue it receives as a result of ad valorem property taxes and specific ownership taxes levied by the Districts except those upon Lot B in ASMD and upon any increase in the number of dwelling units permitted or commercial square footage in the zoning entitlement as of February 27, 2007. The Districts can use any District Tax Increment Revenue remitted for those purposes permitted by the Service Plan, including paying for public improvements within the Districts. For the year ended December 31, 2020, approximately $435,631 tax increment revenue was collected under this agreement. NOTE G – RISK MANAGEMENT The District is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees, or acts of God. The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as of December 31, 2020. The Pool is an organization created by intergovernmental agreement to provide property, liability, public officials’ liability, boiler and machinery, and workers’ compensation coverage to its members. Settled claims have not exceeded this coverage in the past three years. The District pays annual premiums to the Pool for liability, property, and public officials’ coverage. In the event aggregated losses incurred by the pool exceed amounts recoverable from reinsurance contracts and funds accumulated by the Pool, the Pool may require additional contributions from the Pool members. Any excess funds which the Pool determines are not needed for purposes of the Pool may be returned to the members pursuant to a distribution formula. NOTE H – ECONOMIC FEASIBILITY The District receives the majority of its revenues from property taxes. Under the provisions of a District Facilities Construction and Service Agreement as well as the Capital Pledge Agreement (discussed in Note F), ASMD is required to remit to CMD all revenue raised from mill levies assessed by ASMD to offset the operating expenses and construction costs incurred by CMD for provisions of services to property within ASMD. These tax revenues collected by ASMD have not been sufficient since 2012 to fully pay down the capital obligations. Until the tax base grows to the needed levels, the District will continue to accrue further obligations. Avon Station Metropolitan District NOTES TO FINANCIAL STATEMENTS December 31, 2020 - 22 - NOTE I – TAX, SPENDING AND DEBT LIMITATIONS Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR), contains tax, spending, revenue and debt limitation which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year’s Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. TABOR requires local governments to establish emergency reserves. These reserves must be at least 3% of Fiscal Year Spending, excluding bonded debt service. Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. On November 3, 1998, a majority of the District’s electors authorized the District (1) to increase taxes annually unlimited as to rate or amount by the imposition of an ad valorem property tax levy to be in effect for the life of the debt, which is limited to 20 years and (2) to collect, keep, and expend all District revenue during 1999, and continuing thereafter without regard to limitation under TABOR. On May 2, 2006, the majority of the District’s electors, authorized the removal of the 20 year term restriction on the tax levy. Also, on November 3, 1998, the voters of the District authorized the issuance of $46,800,000 in debt, $46,800,000 in contractual obligations, and approved an increase in the property tax revenue to pay such debt and obligations. On May 2, 2006, voters of the District increased the debt authorization by $1,200,000 and contractual obligations by $46,800,000, bringing the total authorizations to $48,000,000 and $93,600,000 respectively. The District’s management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. Original Variance and Final Over Budget Actual (Under) Revenue -$ -$ -$ Expenditures General government Audit 5,100 5,100 - Director's fees 2,250 2,300 50 Insurance 3,000 2,653 (347) Election 1,000 45 (955) Other 500 246 (254) Total expenditures 11,850 10,344 (1,506) Revenues Over (Under) Expenditures (11,850) (10,344) 1,506 Other Financing Sources (Uses) Transfers in 20,840 21,500 660 Total Other Financing Sources 20,840 21,500 660 Net Change in Fund Balance 8,990 11,156 2,166 Fund Balance, beginning of year 80,676 85,616 4,940 Fund Balance, end of year 89,666$ 96,772$ 7,106$ Avon Station Metropolitan District SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL - GENERAL FUND For the year ended December 31, 2020 - 23 - Avon Station Metropolitan District NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2020 - 24 - RSI NOTE A – BUDGETARY INFORMATION Budgets for major governmental funds are adopted on the modified accrual basis where capital outlays are treated as expenditures and depreciation is not budgeted. The operating budget includes proposed expenditures and the means of financing them. The Board of Directors must approve transfers between funds, or increases to a fund’s budget. RSI NOTE B – EXPENDITURES/EXPENSES IN EXCESS OF APPROPRIATION State Statute requires that expenditures and transfers for a fund cannot exceed the appropriations for that fund. Appropriations for a fund may be increased provided unanticipated resources offset them. The budget is controlled at the departmental level within each fund. However, the legal level of appropriation is within the fund. In 2020, the District did not have any budget violations. Variance Original Final Over Budget Budget Actual (Under) Revenue Property taxes 1,045,723$ 1,045,723$ 1,045,742$ 19$ Allowance for potential abatement (109,812) - - - Specific ownership taxes 52,286 67,972 75,015 7,043 Interest income 2,500 2,500 2,383 (117) Total Revenue 990,697 1,116,195 1,123,140 6,945 Expenditures General government Treasurer's Fees 31,371 31,371 31,390 19 Intergovernmental agreement with Confluence Metropolitan District Capital obligation 692,506 702,690 707,261 4,571 Service obligation 355,792 355,792 355,793 1 Allowance for potentail abatement (106,518) - - - Total Expenditures 973,151 1,089,853 1,094,444 4,591 Revenues Over (Under) Expenditures 17,546 26,342 28,696 2,354 Other Financing Sources (Uses) Transfers out (20,840) (26,342) (21,500) 4,842 Total Other Financing Uses (20,840) (26,342) (21,500) 4,842 Net Change in Fund Balance (3,294) - 7,196 10,490 Fund Balance, beginning of year 35,000 35,000 35,000 - Fund Balance, end of year 31,706$ 35,000$ 42,196$ 10,490$ Avon Station Metropolitan District SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND For the year ended December 31, 2020 - 25 - Prior Year Assessed Valuation for Current Percent Year ending Year Property Mills Collected 31-Dec Tax Levy Levied Levied Collected to Levied 2005 1,283,720$ 45.000 57,768$ 57,768$ 100.0% 2006 1,628,280 45.000 73,273 73,273 100.0% 2007 1,628,280 45.000 73,273 73,273 100.0% 2008 5,515,510 45.000 248,198 248,673 100.2% 2009 11,893,230 45.000 535,195 535,018 100.0% 2010 21,095,610 45.000 949,302 920,745 97.0% 2011 21,093,700 45.000 949,217 948,732 99.9% 2012 13,469,790 58.000 781,248 780,704 99.9% 2013 13,244,680 58.000 768,192 768,192 100.0% 2014 12,659,710 58.000 734,263 734,262 100.0% 2015 12,526,370 58.000 726,529 726,528 100.0% 2016 14,607,570 58.000 847,239 847,156 100.0% 2017 14,337,080 63.000 903,236 903,236 100.0% 2018 12,696,830 65.585 832,722 826,809 99.3% 2019 12,695,090 65.596 832,747 827,871 99.4% 2020 15,947,630 65.572 1,045,718 1,045,742 100.0% 2021 16,471,320 65.780 1,083,483 N/A 0.0% Property Taxes Avon Station Metropolitan District SUMMARY OF ASSESSED VALUATION, MILL LEVY, AND PROPERTY TAX COLLECTION - 26 - CONFLUENCE METROPOLITAN DISTRICT FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS December 31, 2020 TABLE OF CONTENTS REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 6 Statement of Activities 7 Fund Financial Statements Balance Sheet – Governmental Funds 8 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 9 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 10 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balance – Government Funds to the Statement of Activities 11 Notes to the Financial Statements 12 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 25 Notes to Required Supplementary Information 26 Other Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Debt Service Fund 27 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Gondola/Capital Reserve Fund 28 Schedule of Bond Obligations and Interest Requirements to Maturity 29 2499 Hwy. 6&50 www.csdcpa.com 970-245-3000 Grand Junction, CO 81505 e-mail info @ csdcpa.com FAX 970-242-4716 TOLL FREE 877-245-8080 INDEPENDENT AUDITOR’S REPORT May 29, 2021 To the Board of Directors and Management Confluence Metropolitan District c/o Marchetti & Weaver LLC 28 Second Street, Suite 213 Edwards, CO 81632 We have audited the accompanying financial statements of the governmental activities and each major fund of Confluence Metropolitan District, as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of Confluence Metropolitan District, as of December 31, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Confluence Metropolitan District Page Two Emphasis of Matter As disclosed in Note F to the financial statements, the District was unable to meet its current year mandatory sinking fund redemption payments in 2019 and it is unclear whether the District will collect sufficient funding from its taxing districts in future years to be able to meet its obligations beyond 2020. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and general fund budgetary comparison information on pages 3–5 and 26 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Confluence Metropolitan District’s basic financial statements. The schedule of revenues, expenditures and changes in fund balance – budget and actual – debt service fund, the schedule of revenues, expenditures and changes in fund balance – budget and actual – gondola/capital reserve fund, and the schedule of bond obligations and interest requirements to maturity is presented for purposes of additional analysis and are not a required part of the basic financial statements. The budgetary schedules for the debt service and gondola/capital reserve funds, and the schedule of bond obligations and interest requirements to maturity, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of revenues, expenditures and changes in fund balance – budget and actual – debt service fund, the schedule of revenues, expenditures and changes in fund balance – budget and actual – gondola/capital reserve fund, and the schedule of bond obligations and interest requirements to maturity, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Chadwick, Steinkirchner, Davis & Co., P.C 3 Confluence Metropolitan District Management’s Discussion and Analysis December 31, 2020 As management of Confluence Metropolitan District (the “District”), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended December 31, 2020. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains supplementary information presented after the notes to the financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on the District’s assets, deferred outflows, liabilities, and deferred inflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The governmental activity of the District is the financing, installation and operation of the gondola transportation and other infrastructure systems for the Avon Station Metropolitan District. The government-wide financial statements can be found on pages 6 and 7 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District currently has four funds, the General Fund, the Debt Service Fund, the Capital Projects Fund, and the Gondola Reserve Fund, all of which are governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The governmental fund financial statements are located on pages 8 through 10 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements can be found starting on page 12 of this report. 4 Government-wide Financial Analysis. The following tables show condensed financial information derived from the government-wide financial statements. Statement of Net Position 2020 2019 Current assets 1,303,792$ 1,304,082$ Capital and other non-current assets 6,967,504 7,534,912 Total Assets 8,271,296 8,838,994 Current liabilities 5,066,856 4,239,873 Non-current liabilities 24,716,101 25,526,101 Total Liabilities 29,782,957 29,765,974 Net position: Net Investment in fixed assets (16,169,240) (15,745,686) Restricted for emergencies 18,901 18,901 Unrestricted (5,361,322) (5,200,195) Total Net Position (21,511,661)$ (20,926,980)$ Governmental Activities The District is the “service district” in a dual district structure whereby the District constructed the infrastructure for the Avon Station Metropolitan District (ASMD) subdivision. The District entered into a District Facilities Construction and Service Agreement with ASMD and pursuant to this agreement, the District is obligated to construct and provide the initial financing for the primary infrastructure for the ASMD area. ASMD is the “financing district” and as such, will ultimately pay “capital and service obligations” to reimburse the District for the costs to construct, maintain, and operate the infrastructure. The District will then use the funds received from ASMD to pay off the District’s debt. In addition, the District had an intergovernmental agreement with Mountain Vista Metropolitan District to provide funds for specific infrastructure regional improvements which expired February 2020. The District’s revenues consisted primarily of operating and capital contributions received or accrued from ASMD pursuant to the District Facilities Construction and Service Agreement. Other sources of revenues include contributions from the Town of Avon toward the operating costs of the gondola and operating and capital contributions from Mountain Vista Metropolitan District. Program revenues: -$ -$ Operating grants and contributions 978,203 718,574 Capital Contributions 852,836 852,836 General revenues: Interest and other revenue 11,481 36,070 Total Revenues 1,842,520 1,607,480 EXPENSES: Program expenses: General government 365,910 159,842 Transportation 677,196 957,233 Intergovernmental agreement 143,854 58,416 Interest on long-term debt 1,240,241 1,239,516 Total Expenses 2,427,201 2,415,007 Change in Net Position (584,681) (807,527) Net Position - Beginning (20,926,980) (20,119,453) Net Position - Ending (21,511,661)$ (20,926,980)$ 5 Financial Analysis of the District’s Funds As mentioned earlier, the District uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of expendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District’s governmental funds reported a combined ending fund balance of $1,127,171. The fund balance primarily consists of funds being held in escrow accounts for capital reserves and future debt payments. Budget variances. The District expenditures were similar to budgeted results. Details for each of the funds can be seen on pages 26 through 29 of this report. Capital assets. The District’s net investment in capital assets decreased by $423,554 as a result of depreciation expense being greater than capital additions. Additional information as well as a detailed classification of the District’s net capital assets can be found in the Notes to the Financial Statement on page 18 of this report. Long-term debts. The District issued tax supported revenue bonds during 2007 in the amount of $24,665,000. A portion of the bond proceeds were used to repay advances received from the Developer to finance public facilities and improvements that are within District boundaries. The District did not receive adequate funding for the debt service payments causing the District to request a withdrawal of $56,625 from the reserve fund to help cover the debt service interest payments in 2020. The District was unable to fund its mandatory sinking fund redemption payments for the principal payments due December 1, 2018, 2019 and 2020. Additional information can be found in the Notes to the Financial Statement on page 20 and 21 of this report. Economic Conditions and Outlook. Based on the current valuation of properties within the Avon Station Metropolitan District and the Mountain Vista Metropolitan District the property tax revenues received are not sufficient to cover the annual debt service payments, requiring draw downs of the bond guaranty fund and the bond reserve fund. As of December 31,2016, the guaranty fund was exhausted. The debt service reserve fund has a remaining balance of $776. Economic Factors and Next Year’s Budget. It is anticipated COVID-19 will have impacts on the economy as a whole which will include financial impacts to the District, however the extent of such impact remains unknown at this time. Request for Information This financial report is designed to provide a general overview of the District’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Confluence Metropolitan District, Marchetti & Weaver LLC, P.C., 28 Second Street, Suite 213, Edwards, CO 81632 or you may call (970) 926- 6060. Assets Current Assets Cash and cash equivalents 1,214,221$ Accounts receivable 7,703 Due from Avon Station Metropolitan District 10,685 Prepaid expense 12,766 Current portion of Capital and Service obligations from Avon Station Metropolitan District 58,417 Total Current Assets 1,303,792 Noncurrent Assets Capital and Service obligations from Avon Station Metropolitan District 270,643 Capital assets Depreciable 12,277,956 Accumulated depreciation (5,581,095) Total Noncurrent Assets 6,967,504 Total Assets 8,271,296 Liabilities Current liabilities Accounts payable 39,374 Accrued interest payable 1,798,652 Unearned revenue 78,830 Current maturities of long-term debt 3,150,000 Total Current Liabilities 5,066,856 Noncurrent Liabilities Amounts due to developer 5,991,101 Bonds payable 18,725,000 Total Noncurrent Liabilities 24,716,101 Total Liabilities 29,782,957 Net Position Net investment in capital assets (16,169,240) Restricted for emergencies 18,901 Unrestricted (5,361,322) Total Net Position (21,511,661)$ The accompanying notes are an integral part of these financial statements. Confluence Metropolitan District STATEMENT OF NET POSITION December 31, 2020 - 6 - Program Operating Capital Net (Expense)Expenses Contributions Contributions RevenueGovernmental OperationsGeneral government 365,910$ -$ -$ (365,910)$ Transportation 677,196 234,479 (442,717) Intergovernmental agreement 143,854 743,724 852,836 1,452,706 Interest expense 1,240,241 - - (1,240,241) Totals 2,427,201$ 978,203$ 852,836$ (596,162) General RevenuesInterest income 11,481 Total General Revenues 11,481 Change in Net Position (584,681) Net Position, beginning of year (20,926,980) Net Position, end of year (21,511,661)$ The accompanying footnotes are an integral part of these financial statements. For the year ended December 31, 2020STATEMENT OF ACTIVITIESConfluence Metropolitan District- 7 - Total Debt Gondola/Capital Governmental General Service Reserve Funds Assets Cash 484,301$ -$ 729,920$ 1,214,221$ Restricted cash - - - - Accounts receivable 6,840 863 - 7,703 Due from other fund 9,736 9,736 Due from Avon Station and Mountain Vista Metropolitan Districts 1,036 9,649 - 10,685 Prepaid expense 12,766 - - 12,766 Total Assets 504,943$ 10,512$ 739,656$ 1,255,111$ Liabilities and Fund Balance Liabilities Accounts payable 39,374$ -$ -$ 39,374$ Due to other fund - 9,736 - 9,736 Unearned revenue 78,830 - - 78,830 Total Liabilities 118,204 9,736 - 127,940 Fund Balances Nonspendable - prepaid expense 12,766 - - 12,766 Restricted for emergencies 18,901 - - 18,901 Restricted for debt service - 776 - 776 Assigned for gondola/capital reserve - - 739,656 739,656 Unassigned 355,072 - - 355,072 Total Fund Balance 386,739 776 739,656 1,127,171 Total Liabilities and Fund Balance 504,943$ 10,512$ 739,656$ 1,255,111$ The accompanying notes are an integral part of these financial statements. Confluence Metropolitan District BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2020 - 8 - Total Fund Balances 1,127,171$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets, net of accumulated depreciation, used in governmental funds are not financial resources, and therefore are not reported in the governmental funds. 6,696,861 Accrued expenses, including interest payable on outstanding debt, do not require current financial resources. Therefore, they are not reported as liabilities in governmental funds balance sheets. (1,798,652) Amounts owed to the District for costs incurred to construct, operate, and maintain infrastructure are not collectible in the current period and, therefore, are not reported in the governmental funds, net of allowance for doubtful accounts. 329,060 Long-term liabilities, including amounts owed to developer and bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds. (27,866,101) Total Net Position (21,511,661)$ The accompanying notes are an integral part of these financial statements. Confluence Metropolitan District RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEETS TO THE STATEMENT OF NET POSITION December 31, 2020 - 9 - Total Debt Gondola/Capital Governmental General Service Reserve Funds Revenue TIFF payments from Town of Avon 152,802$ 282,829$ -$ 435,631$ Payments from Avon Station Metropolitan District 355,793 707,261 - 1,063,054 Payments from Mountain Vista Metropolitan District 18,569 79,306 - 97,875 Payments from Town of Avon 234,479 - - 234,479 Interest income 6,063 525 4,893 11,481 Total Revenue 767,706 1,069,921 4,893 1,842,520 Expenditures General government Accounting 23,502 - - 23,502 Audit 7,300 - - 7,300 Directors' fees 2,476 - - 2,476 Elections 6,877 - - 6,877 Insurance 42,622 - - 42,622 Legal 25,875 - - 25,875 Miscellaneous 107 - - 107 Landscape/entry monument 43,473 - - 43,473 Bond refinance planning 57,843 57,843 Transportation Airspace lease 4,244 - - 4,244 Utilities 22,516 - - 22,516 Gondola insurance 40,376 - - 40,376 Gondola operations 190,122 - - 190,122 Gondola repairs and maintenance 1,875 - - 1,875 Gondola management 75,000 - - 75,000 Plaza operations 75,344 - - 75,344 Debt Service Interest - 1,187,483 - 1,187,483 Total Expenditures 619,552 1,187,483 - 1,807,035 Revenues Over (Under) Expenditures 148,154 (117,562) 4,893 35,485 Other Financing Sources (Uses) Transfers in - 9,194 73,500 82,694 Transfers out (82,694) - - (82,694) Total Other Financing Sources (Uses) (82,694) 9,194 73,500 - Revenues and Other Financing Sources (Uses) Over (Under) Expenditures 65,460 (108,368) 78,393 35,485 Fund Balance, beginning of year 321,279 109,144 661,263 1,091,686 Fund Balance, end of year 386,739$ 776$ 739,656$ 1,127,171$ Confluence Metropolitan District STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the year ended December 31, 2020 The accompanying notes are an integral part of these financial statements. - 10 - Reconciliation to the Statement of Activities Total net change in fund balances - governmental funds 35,485$ Amounts reported for governmental activities in the Statement of Activities are different because: Depreciation expense on capital assets was reported in the Statement of Activities but it did not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in the governmental funds. (423,554) Increases and decreases in capital and service obligation owed to Confluence Metropolitan District do not produce or use current financial resources and, therefore, are not reported in the governmental funds. 17,270 Bad debt expense related to capital and service obligation owed to Confluence Metropolitan District do not represent current financial resources and, therefore, is not reported in the governmental funds. (161,124) Changes in accrued interest on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources; therefore, the expense associated with the increases in accrued interest is not reported as expenditures in governmental funds. (52,758) Change in net position of governmental activities (584,681)$ The accompanying notes are an integral part of these financial statements. Confluence Metropolitan District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the year ended December 31, 2020 TO THE STATEMENT OF ACTIVITIES - 11 - Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 12 - NOTE A – ORGANIZATION AND DEFINITION OF REPORTING ENTITY The District, a quasi-municipal organization, was organized on February 8, 1999, and is governed pursuant to provisions of the Colorado Special District Act. The District’s service area is located in Eagle County, Colorado. The District was established as part of a dual district structure with the Avon Station Metropolitan District (ASMD). The District is considered the service district and was established to provide water, street, traffic and safety, fire protection and emergency medical services, television relay, transportation, parks and recreation, sanitation, and mosquito and pest control improvements. ASMD is the financing district and was established to provide funding and tax base for capital improvements constructed and operated by the District (see Note H). The District has no employees and all services are contracted. The District follows the Governmental Accounting Standards Board (GASB) accounting pronouncements which provide guidance for determining which governmental activities, organizations, and functions should be included within the financial reporting entity. GASB pronouncements set forth the financial accountability of a governmental organization’s elected governing body as the basic criterion for including a possible component governmental organization in a primary government’s legal entity. Financial accountability includes, but is not limited to, appointment of a voting majority of the organization’s governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens and fiscal dependency. The District is not financially accountable for any other organization, nor is the District a component unit of any other primary governmental entity. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District’s basic financial statements consist of government-wide statements, including the Statement of Net Position and the Statement of Activities. These financial statements include all of the activities of the District. For the most part, the effect of interfund activity has been removed from these statements. The Statement of Net Position and the Statement of Activities display information about the District as a whole. These statements include the financial activities of the primary government. The Statement of Net Position presents the financial condition of the governmental activities at year-end. The Statement of Activities presents a comparison between program expenses and the program revenues for each program or function of the District’s governmental activities. Program expenses are those that are specifically associated with a service, program, or department; and therefore, clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program, and interest earned on grants that is required to be used to support a particular program. Revenues which are not classified as program revenues are presented as general revenues of the District, with certain limited exceptions. The comparison of program expenses with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of the District. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 13 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the current financial resources measurement focus and the accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances reports on the sources (revenues and other financing sources) and uses (expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. During the year, the District segregates transactions related to certain District functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the District at this more detailed level. The focus of governmental fund financial statements is on major funds. The District reports the following governmental funds: General Fund – the General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund – the Debt Service Fund is used to account for the accumulation of resources for and the payment of long-term obligation principal, interest and related costs. Gondola/Capital Reserve Fund – the Gondola/Capital Reserve Fund is used to account for financial resources to be used for future repairs of the gondola and capital improvements. Fair value of financial statements Investments are stated at fair value in compliance with GASB 72, Fair Value Measurement and Applications. The definition of fair value is the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 14 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Use of estimates The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The District does not have any items that qualify for reporting in this category. Capital assets Capital assets are those items purchased or constructed by the government that have a useful life greater than 1 year and a cost that meets or exceeds the capitalization threshold of $5,000 as set by District policy. These assets are reported in the governmental activities column of the government-wide Statement of Net Position but are not reported in the fund financial statements. All capital assets are capitalized at cost, or estimated historical cost, and updated for additions and retirements during the year. Donated fixed assets are recorded at their acquisition value as of the date received. Improvements are capitalized, however, the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized. All reported capital assets except construction in progress are depreciated. Depreciation is computed using the straight-line method over the asset’s estimated useful life. The estimated useful lives are as follows: Improvements 15 years Gondola 30 years Buildings 25 years Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 15 - NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Fund equity Fund balance for governmental funds should be reported in classifications that comprise a hierarchy based on the extent to which the government is bound to honor constraints on the specific purposes for which spending can occur. Governmental funds report up to five classifications of fund balance: nonspendable, restricted, committed, assigned, and unassigned. Because circumstances differ among governments, not every government or every governmental fund will present all of these components. The following classifications describe the relative strength of the spending constraints: Nonspendable – The portion of fund balance that cannot be spent because it is either not in spendable form (such as prepaid amounts or inventory) or is legally or contractually required to be maintained intact. Restricted – The portion of fund balance that is constrained to be used for specific purpose by external parties (such as bondholders), constitutional provisions, or enabling legislation. The District’s restricted fund balance represents amounts reserved for emergencies under the Colorado State Constitution, and amounts restricted for debt service. Committed – The portion of fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision – making authority, the Board of Directors. The constraint may be removed or changed only though formal action of the Board of Directors. The District has no committed fund balance. Assigned – The portion of fund balance set aside for planned or intended purposes. The intended use may be expressed by the Board of Directors or other individuals authorized to assign funds to be used for a specific purpose. This classification is necessary to indicate that those funds are, at a minimum, intended to be used for the purpose of that particular fund. The fund balance in the District’s gondola reserve fund is assigned for future gondola repairs. Unassigned – The residual portion of fund balance that does not meet any of the criteria described above. The District will only report a positive unassigned fund balance in the General Fund. NOTE C – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary information In accordance with State Budget Law, the District’s Board of Directors holds public hearings in the fall each year to approve the budget and appropriate the funds for the ensuing year. The appropriation is at the total fund expenditures level and lapses at year-end. The District’s Board of Directors can modify the budget by line item within the total appropriation without notification. The appropriation can only be modified upon completion of notification and publication requirements. The budget includes each fund on its basis of accounting unless otherwise indicated. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 16 - NOTE C – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED Budgetary information (continued) Encumbrance accounting (open purchase orders, contracts in process and other commitments for the expenditures of funds in future periods) is not used by the District for budget or financial reporting purposes. NOTE D – CASH AND INVESTMENTS Cash and investments As of December 31, 2020, cash and investments are classified in the accompanying financial statements as follows: Statement of net position: Deposits $ 4,147 Colotrust 1,210,074 Cash and investments $ 1,214,221 Custodial and concentration of credit risk Custodial credit risk is the risk that in the event of the failure of a depository financial institution, the government would not be able to recover deposits or collateral securities that are in the possession of an outside party. Deposits are exposed to custodial credit risk if they are not covered by depository insurance and collateralized with securities held by the pledging financial institution, or collateralized by certain types of collateral pools including a single financial institution collateral pool where the fair value of the pool is equal to or exceeds all uninsured public deposits held by the financial institution (e.g. deposits insured by The Public Deposit Protection Act (PDPA). Accordingly, none of the District’s deposits at December 31, 2020, are deemed to be exposed to custodial credit risk. The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is specified by PDPA. PDPA allows the institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2020, the District’s cash deposits had a carrying value of $4,147 and a corresponding bank balance of $21,390, all of which was FDIC insured. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 17 - NOTE D – CASH AND INVESTMENTS - CONTINUED Pooled cash The District follows the practice of pooling cash and investments of all funds to maximize net investment income. Except when required by trust or other agreements, all cash is deposited to and disbursed from a single bank account. Cash in excess of immediate operating requirements is pooled for deposit and investment flexibility. Net investment income is allocated periodically to the participating funds based upon each fund’s average equity balance in the total cash. Investments Colorado Statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include:  Obligations of the United States and certain United States government agency securities  General obligations and revenue bonds of United States local government entities  Bankers’ acceptances of certain banks  Commercial paper  Written repurchase agreements collateralized by certain authorized securities  Certain money market funds  Local government investment pools Local Government Investment Pools – At December 31, 2020, the District had $1,210,074 invested in Colorado Local Government Liquid Asset Trust (COLOTRUST), an investment vehicle established for government entities in Colorado to pool surplus funds. As an investment pool, COLOTRUST operates under the Colorado Revised Statutes (24-75-701) and is overseen by the Colorado Securities Commissioner. The Trust invests in securities that are specified by the Colorado Revised Statutes (24-75- 601). These assets are valued at net asset value per share as determined by the pool. Authorized securities include US Treasuries, US Agencies, commercial paper, repurchase agreements and bank deposits (collateralized through PDPA). The Trust operates similar to a 2a7-like money market fund with a share value equal to $1.00 and a maximum weighted average maturity of 60 days. COLOTRUST is rated AAA by the Standard & Poor’s Corporation. Designated custodial banks provide safekeeping and depository services to the Trusts in connection with the direct investment and withdrawal functions of the Trusts. Substantially all securities owned by the Trusts are held by the Federal Reserve Bank in the account maintained for the custodial bank. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 18 - NOTE E – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2020 was as follows: Balance Balance December 31, December 31, 2019 Additions Retirements 2020 Depreciable Improvements $ 286,189 $ – $ – $ 286,189 Upper Terminal 173,442 – – 173,442 Gondola 7,715,649 – – 7,715,649 Lower Public Plaza 4,102,676 – – 4,102,676 Total capital assets 12,277,956 – – 12,277,956 Less accumulated depreciation Improvements (228,948) (19,079) – (248,027) Upper terminal (72,188) (5,781) – (77,969) Gondola (3,284,715) (261,938) – (3,546,653) Lower Public Plaza (1,571,690) (136,756) – (1,708,446) Total accumulated depreciation (5,157,541) (423,554) – (5,581,095) Net capital assets $ 7,120,415 $ (423,554) $ – $ 6,696,861 Depreciation expense was allocated $267,719 to the transportation function and $155,835 to the general government function. NOTE F – LONG-TERM OBLIGATIONS The following is an analysis of the change in long-term obligations for the year ended December 31, 2020: Balance Balance December 31, December 31, Due Within 2019 Additions Retirements 2020 One Year Due to Developer $ 5,991,101 $ – $ – $ 5,991,101 $ – Bonds Payable $ 21,875,000 $ – $ – $ 21,875,000 $ 3,150,000 Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 19 - NOTE F – LONG-TERM OBLIGATIONS - CONTINUED A description of the long-term obligations outstanding as of December 31, 2020, is as follows: Developer Advances On August 22, 2006, the District entered into a Funding and Reimbursement Agreement with East West Resort Development XIV L.L.P. The Developer agreed to advance funds to the District, up to a maximum of $25,000,000 to enable the District to improve property and to acquire those public facilities and improvements that were paid for by the Developer within the District boundaries. Any amounts advanced to the District under this original agreement bear an annual interest rate of 12 percent, and the agreement automatically renewed each year unless terminated by the Developer. On December 18, 2007 the District entered into the First Amendment to the Funding and Reimbursement Agreement. The Amendment acknowledged the repayment of principal amounts owed to the Developer for advances made to the District excluding unpaid interest of $1,062,963 which remains due and owing to the Developer. In addition the Developer agreed to continue to advance funds to the District up to a maximum of $1,000,000 through January 31, 2009 to enable the District to provide operations and continue to improve property and to acquire those public facilities and improvements that have been paid for by the Developer within the District boundaries. Any amounts advanced to the District under this amended agreement also bear an annual interest rate of 12 percent, and the agreement automatically renews each year unless terminated by the Developer. On August 26, 2008, the District entered into the Second Amendment to the Funding and Reimbursement Agreement. The amendment modified the interest rate to the prime rate specified in the Wall Street Journal on January 1, plus 2%. All other terms of the Agreement remain the same. On January 31, 2009, the District entered into a third amendment to the Funding and Reimbursement Agreement whereby the Developer agreed to continue to advance funds up to a maximum of $1,400,000 through December 31, 2011. All other terms of the Agreement remained the same. On November 29, 2011, the District entered into a fourth amendment to the Funding and Reimbursement Agreement whereby the Developer shall have no further obligation to advance funds to the District after December 31, 2011. All other terms of the Agreement remained the same. Repayment of amounts due to the Developer is subordinated to debt service requirements of the District’s Tax Supported Revenue Bonds. At December 31, 2020, in addition to outstanding developer advances of $991,101, unpaid interest due to the developer totaled $636,731. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 20 - NOTE F – LONG-TERM OBLIGATIONS – CONTINUED $24,665,000 Limited Tax Supported Revenue Bonds, Series 2007 The bonds, dated May 1, 2007 with interest payable semiannually at 5.25% to 5.45%, consist of serial bonds issued in the original amount of $2,790,000 due December 1, 2017, term bonds in the original amount of $9,410,000, due December 1, 2027, and term bonds issued in the original amount of $12,465,000, due December 1, 2034. The terms bonds are subject to mandatory sinking fund and extraordinary redemption prior to the maturity date of such bonds. These bonds were issued for the purpose of assisting with financing infrastructure improvements necessary for commercial development. The net bond proceeds funded a debt service reserve funds with the remaining net proceeds being used for construction of the improvements within the District and for repayment of developer advances. As of December 31, 2020, the debt service reserve fund balance is $775. During 2020, property taxes were not sufficient to cover the bond’s interest and principal payments and $56,625 was transferred from the reserve fund to help cover those payments. The District has entered into a capital pledge agreement with Avon Station Metropolitan District and the Trustee whereby ASMD pledged certain revenues to assist in the repayment of District bonds to the extent of the pledged revenues. Future maturities of the District’s bonds are as follows: $24,665,000 Limited Tax Supported Revenue Bonds, Series 2007 (continued) The Developer was also required to place $5,000,000 in a guaranty account to fund shortfalls in funding required for debt service and for gondola operations. The guaranty account is to remain in place until the assessed valuation of the taxing district (ASMD) reaches a certain required level as more fully discussed in the bond documents. Since 2012, the District has withdrawn $4,710,000 from the Guaranty Account to cover a shortfalls for the debt service payments. The District is also allowed to withdraw up to a maximum of $1,000,000 from the guaranty account to fund shortfalls in operating and maintaining the gondola, subject to a cap of $240,000 per year. The District has withdrawn $290,000 from the Guaranty Account since 2010 to cover shortfalls for gondola operations. Principal Interest Total 2021 3,150,000$ 1,187,483$ 4,337,483$ 2022 880,000 1,017,382 1,897,382 2023 915,000 969,863 1,884,863 2024 1,020,000 920,452 1,940,452 2025 1,060,000 865,373 1,925,373 2026-2030 6,660,000 3,368,752 10,028,752 2031-2034 8,190,000 1,232,246 9,422,246 21,875,000$ 9,561,551$ 31,436,551$ Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 21 - NOTE F – LONG-TERM OBLIGATIONS – CONTINUED As of December 31, 2020, the remaining balance in the Guaranty Account totaled $0. Sufficient pledged revenue and guaranty fund amounts may not be available to fund scheduled debt service requirements on a timely basis. The District was unable to fund its mandatory sinking fund redemption payment of $865,000 that was due on December 1, 2020. See further discussion in Note H. Authorized Debt At December 31, 2020, the District has authorized but unissued general obligation debt for the following improvement purposes: NOTE G – RELATED PARTIES A majority of the members of the Board of Directors of the District are employees of the East West Partners (the Developer) or related entities. NOTE H – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES District Facilities Construction and Service Agreement The District has entered into a Second Amended and Restated Joint Facilities Construction and Service Agreement with Avon Station Metropolitan District (“the Financing District”) dated April 26, 2007. Under the agreement, the Financing District is to provide funding and the necessary tax base for financing the construction, operation, and maintenance of the public improvements that benefit both of the Districts. The Financing District may also obtain financing for the construction of the public improvements and pay the proceeds to the District. The District will manage the construction and operation of the public improvements, and own, operate, and maintain the public improvements pursuant to a long-term operations and maintenance program. 1998 Electoral 2006 Electoral 2020 Electoral Authorization Used Remaining Authorization Authorization Authorization Series 2007 Bonds Authorization Transportation 27,500,000$ 27,500,000$ -$ (9,994,422)$ 45,005,578$ Parks and recreation 8,100,000 8,100,000 - (5,453,142) 10,746,858 Streets 7,500,000 7,500,000 - (7,180,352) 7,819,648 Television 1,500,000 - - - 1,500,000 Sewer 500,000 1,500,000 - (1,095,288) 904,712 Water 500,000 1,500,000 - (768,604) 1,231,396 Traffic and safety 500,000 - - (173,192) 326,808 Fire protection 500,000 - - - 500,000 Mosquito and pest control 100,000 - - - 100,000 Operation and maintenance 100,000 1,200,000 - - 1,300,000 Refunding District Debt - - 47,800,000 - 47,800,000 46,800,000$ 47,300,000$ 47,800,000$ (24,665,000)$ 117,235,000$ Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 22 - NOTE H - AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES – CONTINUED Under the agreement, the Financing District has assigned all revenue raised from mill levies assessed by ASMD to the District in order to offset the expenses of the construction of the public improvements and the District’s costs of operation and maintenance of such public improvements. The Agreement remains in force until all terms and conditions have been performed in their entirety. The Financing District’s primary revenue source is property taxes collectible annually based on a set mill levy applied to the assessed valuation of the Financing District’s property. During 2020, the District received $1,063,054 from the Financing District in accordance with this agreement. As of December 31, 2020, the District had incurred $28,537,582 in unreimbursed expenditures, which the Financing District will be obligated to pay pursuant to this agreement to the extent of legally available revenues. An allowance for doubtful accounts has been established to offset the full amount of the obligation due from ASMD as it is anticipated that there may be insufficient tax revenues collected in accordance with the Capital Pledge Agreement to pay down this obligation and future costs incurred, such as interest expense on the bonds. As a result the long-term receivable will be shown as follows: Capital and Service obligations from Avon Station Metropolitan District $ 28,537,582 Allowance for uncollectible obligation (28,208,522) Net Capital and Service obligations $ 329,060 Capital Pledge Agreement On May 1, 2007 the District entered into a capital pledge agreement with Avon Station Metro District and the Trustee whereby ASMD pledged certain revenues to assist in the repayment of District bonds to the extent of the pledged revenues. Intergovernmental Agreement with Mountain Vista Metropolitan District The District has entered into an Amended and Restated Intergovernmental Agreement with Mountain Vista Metropolitan District (Mountain Vista) dated April 28, 2006. Under the agreement, Mountain Vista is to certify a mill levy up to 25 mills (subject to certain adjustments) but not in excess of the debt service mill levy imposed by ASMD for financing the construction, operation, and maintenance of public improvements that benefit both Districts. Of the 25 mills, 5 mills relate to operations and maintenance and will be imposed indefinitely unless the improvements are dedicated to the Town. The remaining 20 mills (subject to certain adjustments) related to CMD debt is subject to Mountain Vista’s electoral debt authorization which expired on February 23, 2020. The District will manage the construction and operation of the public improvements, and own, operate, and maintain the public improvements pursuant to a long-term operations and maintenance program. During 2020, the District received $97,875 from Mountain Vista in accordance with this agreement. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 23 - NOTE H – AGREEMENTS WITH OTHER GOVERNMENTAL ENTITIES - CONTINUED Intergovernmental Agreement with Avon Urban Renewal Authority The District entered into an Intergovernmental Agreement with the Avon Urban Renewal Authority (the “Authority”) and ASMD concerning incremental taxes on October 9, 2007. Under this agreement, the Authority agreed to remit to the Districts the incremental revenues it receives as a result of ad valorem property taxes and specific ownership taxes levied by the Districts except those upon Lot B in ASMD and upon any increase in the number of dwelling units permitted or commercial square footage in the zoning entitlements as of February 27, 2007. The Districts shall use any District Tax Increment Revenues remitted for those purposes permitted by the Service Plan, including paying for public improvements within the Districts. During 2020, the District received $435,631 in accordance with this agreement. Facilities Operations Agreement The District entered into a Facilities Operation Agreement with the Town of Avon (TOA) on March 14, 2006. The agreement addresses the responsibilities and funding related to the construction, operations and maintenance for the Gondola and Public Plaza Improvements. During 2020, the District received $234,479 from TOA for their portion of the gondola and public plaza operation costs in accordance with the agreement. Operations Agreement The District entered into a Gondola Construction, Operations and Maintenance Agreement with the Vail Corporation on April 28, 2006. The agreement was amended on October 24, 2007 to include the District Plaza located at the upper gondola terminal. Under this agreement, Vail Corporation will provide operations and maintenance for the upper plaza and gondola. The Agreement will automatically renew each year for an initial period of 15 years absent written notice by either party of early termination. The Amendment states that, after the initial 15 year period, the District has the option to renew the Agreement for six (6) additional fifteen (15) year periods and the District must inform Vail in writing if it chooses to exercise that option. During 2020, the District incurred costs of $265,122 under this agreement. NOTE I – RISK MANAGEMENT The District is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets; errors or omissions, injuries to employees, or acts of God. The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as of December 31, 2020. The Pool is an organization created by intergovernmental agreement to provide property, liability, public officials’ liability, boiler and machinery, and workers’ compensation coverage to its members. Settled claims have not exceeded this coverage in the past three years. Confluence Metropolitan District NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 - 24 - NOTE I – RISK MANAGEMENT – CONTINUED The District pays annual premiums to the Pool for liability, property, and public officials’ coverage. In the event aggregated losses incurred by the Pool exceed amounts recoverable from reinsurance contracts and funds accumulated by the Pool, the Pool may require additional contributions from the Pool members. Any excess funds which the Pool determines are not needed for purposes of the Pool may be returned to the members pursuant to a distribution formula. NOTE J – TAX, SPENDING AND DEBT LIMITATIONS Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR), contains tax, spending, revenue and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year’s Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year spending limit must be refunded unless the voters approve retention of such revenue. TABOR requires local governments to establish emergency reserves. These reserves must be at least 3% of Fiscal Year Spending, excluding bonded debt service. Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. On November 3, 1998, a majority of the District’s electors authorized the District (1) to increase taxes annually unlimited as to rate or amount by the imposition of an ad valorem property tax levy to be in effect for the life of the debt, which is limited to 20 years, and (2) to collect, keep, and expend all District revenues during 1999, and continuing thereafter without regard to limitations under TABOR. On May 2, 2006, the majority of the District’s electors authorized the removal of the 20-year term restriction of the tax levy. Also, on November 3, 1998, the voters of the District authorized the issuance of $46,800,000 in debt and approved an increase in property tax revenue to pay such debt. On May 2, 2006, voters of the District increased this amount by $47,300,000 to a total authorized debt amount of $94,100,000. On November 3, 2020, a majority of the District’s electors authorized the District to increase debt by $47,800,000 and to increase taxes annually to pay such debt, and to collect, keep and expend all District revenues during 2020 and continuing thereafter without regard to limitations under TABOR. The District’s management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. Variance Original Final Over Budget Budget Actual (Under) Revenue TIFF payments from Town of Avon 158,296$ 158,296$ 152,802$ (5,494)$ Service obligation payments from Avon Station Metropolitan District 318,430 355,792 355,793 1 Service obligation payments from Mountain Vista Metropolitan District 18,569 18,569 18,569 - Town of Avon payment for gondola and public plaza operations 294,432 269,415 234,479 (34,936) Interest and other 3,000 5,985 6,063 78 Total Revenues 792,727 808,057 767,706 (40,351) Expenditures General government Accounting 25,750 30,000 23,502 (6,498) Audit 7,400 7,300 7,300 - Directors' fees 2,250 2,250 2,476 226 Election 1,500 10,000 6,877 (3,123) Insurance 42,500 42,625 42,622 (3) Legal 21,000 30,000 25,875 (4,125) Miscellaneous expense 250 250 107 (143) Landscape entry/monument 75,000 60,000 43,473 (16,527) Bond refinance planning - 40,000 57,843 17,843 Transportation - Airspace lease 4,300 4,250 4,244 (6) Utilities 31,000 25,000 22,516 (2,484) Gondola insurance 41,500 40,380 40,376 (4) Gondola operations 330,865 225,000 190,122 (34,878) Gondola repairs and maintenance - - 1,875 1,875 Gondola management 75,000 75,000 75,000 - Plaza operations 70,000 70,000 75,344 5,344 Contingency 10,000 13,260 - (13,260) Total Expenditures 738,315 675,315 619,552 (55,763) Revenues Over (Under) Expenditures 54,412 132,742 148,154 15,412 Other Financing Sources (Uses) Transfers out (36,500) (99,500) (82,694) 16,806 Total Other Financing Uses (36,500) (99,500) (82,694) 16,806 Net Change in Fund Balance 17,912 33,242 65,460 32,218 Fund Balance, beginning of year 306,220 321,279 321,279 - Fund Balance, end of year 324,132$ 354,521$ 386,739$ 32,218$ Confluence Metropolitan District SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the year ended December 31, 2020 - 25 - Confluence Metropolitan District NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2020 - 26 - RSI NOTE A – BUDGETARY INFORMATION Budgets for major governmental funds are adopted on the modified accrual basis where capital outlays are treated as expenditures and depreciation is not budgeted. The operating budget includes proposed expenditures and the means of financing them. The Board of Directors must approve transfers between funds or increases to a fund’s budget. RSI NOTE B – EXPENDITURES/EXPENSES IN EXCESS OF APPROPRIATION State Statute requires that expenditures and transfers for a fund cannot exceed the appropriations for that fund. Appropriations for a fund may be increased provided unanticipated resources offset them. The budget is controlled at the departmental line level within each fund. However, the legal level of appropriation is within the fund. In 2020, the District did not have any budget violations. Variance Original Final Over Budget Budget Actual (Under) Revenue TIFF payments from Town of Avon 277,899$ 293,002$ 282,829$ (10,173)$ Capital obligation payments from Avon Station Metropolitan District 623,350 702,690 707,261 4,571 Capital obligation payments from Mountain Vista Metropolitan District 79,306 79,306 79,306 - Interest income 1,001 13,340 525 (12,815) Contingency revenue - - - - Total Revenue 981,556 1,088,338 1,069,921 (18,417) Expenditures General government Agent fees 10,000 10,000 - (10,000) Debt Service Interest 1,066,672 1,187,482 1,187,483 1 Total Expenditures 1,076,672 1,197,482 1,187,483 (9,999) Revenues Over (Under) Expenditures (95,116) (109,144) (117,562) (8,418) Other Financing Sources (Uses) Proceeds from bond refundings - 22,665,000 - (22,665,000) Reserve, insurance and cost of issuance - (790,000) - 790,000 Payoff of 2007 bonds - (21,875,000) - 21,875,000 Transfers in - - 9,194 9,194 Total Other Financing Sources (Uses) - - 9,194 9,194 Net Change in Fund Balance (95,116) (109,144) (108,368) 776 Fund Balance, beginning of year 95,116 109,144 109,144 - Fund Balance, end of year -$ -$ 776$ 776$ Confluence Metropolitan District SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND For the year ended December 31, 2020 - 27 - Original Original Variance and Final and Final Over Budget Budget Actual (Under) Revenue Interest 12,000$ 5,000$ 4,893$ (107)$ Total Revenue 12,000 5,000 4,893 (107) Expenditures Transportation Gondola expenses 144,000 144,000 - (144,000) Plaza repairs and maintenance 10,000 10,000 - (10,000) Total expenditures 154,000 154,000 - (154,000) Revenues Over (Under) Expenditures (142,000) (149,000) 4,893 153,893 Other Financing Sources (Uses) Transfers in 36,500 99,500 73,500 (26,000) Total Other Financing Sources 36,500 99,500 73,500 (26,000) Net Change in Fund Balance (105,500) (49,500) 78,393 127,893 Fund Balance, beginning of year 661,314 661,263 661,263 - Fund Balance, end of year 555,814$ 611,763$ 739,656$ 127,893$ Confluence Metropolitan District SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GONDOLA/CAPITAL RESERVE FUND For the year ended December 31, 2020 - 28 - Year ending December 31 Principal Interest Total 2021 3,150,000 1,187,483 4,337,483 2022 880,000 1,017,382 1,897,382 2023 915,000 969,863 1,884,863 2024 1,020,000 920,452 1,940,452 2025 1,060,000 865,373 1,925,373 2026 1,170,000 808,132 1,978,132 2027 1,215,000 744,953 1,959,953 2028 1,340,000 679,342 2,019,342 2029 1,400,000 606,313 2,006,313 2030 1,535,000 530,012 2,065,012 2031 1,605,000 446,355 2,051,355 2032 1,750,000 358,883 2,108,883 2033 1,835,000 263,508 2,098,508 2034 3,000,000 163,500 3,163,500 21,875,000$ 9,561,551$ 31,436,551$ Note: The principal of $3,150,000 shown for 2021 in the above schedule represents prinicpal that was originally due in 2018 through 2021 and the District has been unable to make these payments. April 30, 2007, Principal Due December 1, Interest at 5.25% to 5.45% Due June 1 and December 1 Confluence Metropolitan District SCHEDULE OF BOND OBLIGATIONS AND INTEREST December 31, 2020 $24,665,000 Tax Supported Revenue Bonds, Series 2007 REQUIREMENTS TO MATURITY - 29 -