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Home My WebLink About2022 CMD Final Financial Statement Report CORDILLERA METROPOLITAN DISTRICT Eagle County, Colorado FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2021 CORDILLERA METROPOLITAN DISTRICT TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2021 INDEPENDENT AUDITOR’S REPORT I BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION 1 STATEMENT OF ACTIVITIES 2 FUND FINANCIAL STATEMENTS BALANCE SHEET – GOVERNMENTAL FUNDS 3 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 4 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 5 GENERAL FUND – STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 6 WILDLIFE MITIGATION FUND – STATEMENT OF FIDUCIARY NET POSITION 7 WILDLIFE MITIGATION FUND – STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 8 NOTES TO BASIC FINANCIAL STATEMENTS 9 SUPPLEMENTARY INFORMATION CORDILLERA METROPOLITAN DISTRICT DEBT SERVICE FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 24 CORDILLERA MOUNTAIN METROPOLITAN DISTRICT DEBT SERVICE FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 25 DEBT SERVICE RESERVE FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 26 CAPITAL PROJECTS FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 27 WATER FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 28 OTHER INFORMATION SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY 30 FIVE YEAR SUMMARY OF ASSESSED VALUATION, MILL LEVY AND PROPERTY TAXES COLLECTED 32 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Matthew D. Miller, CPA Frisco: (970) 668-3481 i M & A INDEPENDENT AUDITOR'S REPORT To the Board of Directors Cordillera Metropolitan District Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Cordillera Metropolitan District (the “District”), as of and for the year ended December 31, 2021, which collectively comprise the District’s basic financial statements as listed in the Table of Contents, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the District, as of December 31, 2021 and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“U.S.GAAS”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for one year after the date that the financial statements are issued. To the Board of Directors Cordillera Metropolitan District ii Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with U.S. GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with U.S. GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information The District has not presented Management’s Discussion and Analysis that U.S. GAAP has determined is necessary to supplement, although not required to be a part of, the basic financial statement. Our opinions on the basic financial statements are not affected by the missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s financial statements as a whole. The individual fund budgetary comparisons found on pages 24 -29, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The items found on pages 24 -29 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. To the Board of Directors Cordillera Metropolitan District iii Other Information Management is responsible for the other information included in the report. The other information comprises the Schedule of Debt Service Requirements to Maturity and the Five Year Summary of Assessed Valuation, Mill Levy and Property Taxes collected but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. McMahan and Associates, L.L.C. Avon, Colorado July 6, 2022 BASIC FINANCIAL STATEMENTS CORDILLERA METROPOLITAN DISTRICT STATEMENT OF NET POSITION DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (1) Governmental Activities ASSETS Cash and Investments 5,364,779$ Cash and Investments - Restricted 1,035,640 Accounts Receivable County Treasurer 28,714 Due from CPOA 232,242 Other 89,957 Property Tax 6,233,504 Prepaid Expense 17,744 Noncurrent Assets Capital Assets, Not Being Depreciated 7,285,224 Capital Assets, Net 6,342,009 Total Assets 26,629,813 DEFERRED OUTFLOWS OF RESOURCES Cost of Refunding, Net 8,023 8,023 LIABILITIES Accounts Payable 194,598 Accrued Liabilities 204,144 Security Deposits 68,271 Accrued Interest Payable 3,166 Noncurrent Liabilities Due Within One Year 1,715,000 Total Liabilities 2,185,179 DEFERRED INFLOWS OF RESOURCES Deferred Property Tax Revenue 6,233,504 Total Deferred Inflows of Resources 6,233,504 NET POSITION Net Investments in Capital Assets 11,912,233 Restricted for: Emergency Reserves 146,000 Debt Service 894,018 Unrestricted 5,266,902 Total Net Position 18,219,153$ CORDILLERA METROPOLITAN DISTRICT STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (2) Net Revenues (Expenses) and Change in Program Revenues Net Position Charges Operating Capital for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities FUNCTIONS/PROGRAMS Primary Government: Government Activities: General Government 6,080,656$ 209,259$ -$ 1,512$ (5,869,885)$ Public Safety - 46,440 - - 46,440 Equestrian Center - 489,259 - - 489,259 Interest on Long-Term Obligations and Related Costs 132,268 - - - (132,268) Total Governmental Activities 6,212,924$ 744,958$ -$ 1,512$ (5,466,454) GENERAL REVENUES: Property Taxes 6,218,374 Specific Ownership Taxes 338,984 Net Investment Income 16,431 Contributions from CPOA 558,432 Miscellaneous Income 35,822 Gain (loss) on Sale of Asset 43,650 Total General Revenues 7,211,693 CHANGE IN NET POSITION 1,745,239 Net Position - Beginning of Year 16,473,914 NET POSITION - END OF YEAR 18,219,153$ CORDILLERA METROPOLITAN DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (3) Total Capital Governmental General CMD CMMD Reserve Project Funds ASSETS Cash and Investments 4,527,530$ -$ -$ -$ 837,249$ 5,364,779$ Cash and Investments - Restricted 146,000 263,245 294,284 332,111 - 1,035,640 Receivable - County Treasurer 21,170 4,880 2,664 - - 28,714 Accounts Receivable 89,957 - - - - 89,957 Due from CPOA 232,242 - - - - 232,242 Prepaid Expense 17,744 - - - - 17,744 Property Tax Receivable 4,708,019 955,492 569,993 - - 6,233,504 Total Assets 9,742,662$ 1,223,617$ 866,941$ 332,111$ 837,249$ 13,002,580$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable 130,966$ -$ -$ -$ 63,632$ 194,598$ Accrued Liabilities 204,144 - - - - 204,144 Security Deposits 68,271 - - - - 68,271 Total Liabilities 403,381 - - - 63,632 467,013 DEFERRED INFLOWS OF RESOURCES Deferred Property Tax Revenue 4,708,019 955,492 569,993 - - 6,233,504 Total Deferred Inflows of Resources 4,708,019 955,492 569,993 - - 6,233,504 FUND BALANCES Nonspendable: Prepaid Expense 17,744 - - - - 17,744 Restricted for: Emergency Reserve 146,000 - - - - 146,000 Debt Service - 268,125 296,948 332,111 - 897,184 Assigned: Subsequent Year's Expenditures 1,596,318 - - - - 1,596,318 Capital Projects - - - - 773,617 773,617 Unassigned 2,871,200 - - - - 2,871,200 Total Fund Balances 4,631,262 268,125 296,948 332,111 773,617 6,302,063 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 9,742,662$ 1,223,617$ 866,941$ 332,111$ 837,249$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.13,627,233 Other long-term assets are not available to pay for current period expenditures and, therefore, are not reported in the funds Cost of Refunding, net 8,023 Long-term liabilities, including obligations payable, are not due and payable in the current period and, therefore, are not reported in the funds. Bond Payable, Net of Premium (1,715,000) Accrued Bond Interest Payable (3,166) Net Position of Governmental Activities 18,219,153$ Debt Service CORDILLERA METROPOLITAN DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (4) Total Capital Water Governmental General CMD CMMD Reserve Projects Fund Funds REVENUES Property Taxes 4,459,898$ 1,001,098$ 757,378$ -$ -$ -$ 6,218,374$ Specific Ownership Taxes 243,374 54,948 40,662 - - - 338,984 Bearcat Stables - - - - 9,197 - 9,197 Community Operations Revenue 29,767 - - - - - 29,767 CPOA Administration Fees 431,432 - - - - - 431,432 Equestrian Center 485,596 - - - - - 485,596 Net Investment Income 12,228 2,008 2,185 10 - - 16,431 Other Revenue 134,656 - - - - - 134,656 Public Safety Revenue 46,440 - - - - - 46,440 Transfers from CPOA - 61,890 - 65,110 - - 127,000 Water Tap Fees - - - - 36,354 40,282 76,636 Total Revenues 5,843,391 1,119,944 800,225 65,120 45,551 40,282 7,914,513 EXPENDITURES Current General and Administration 1,825,596 30,095 22,782 - - 1,138 1,879,611 Public Safety 833,234 - - - - - 833,234 Community Operations 1,632,515 - - - - - 1,632,515 Equestrian Center 380,696 - - - - - 380,696 Debt Service Interest - 45,309 30,372 - - - 75,681 Principal - 985,000 705,000 - - - 1,690,000 Capital Outlay Capital Outlay/Expense - - - - 1,017,295 - 1,017,295 Total Expenditures 4,672,041 1,060,404 758,154 - 1,017,295 1,138 7,509,032 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,171,350 59,540 42,071 65,120 (971,744) 39,144 405,481 OTHER FINANCING SOURCES (USES) Transfers In (Out)1,003,628 - - - 1,322,635 (2,326,263) - Sale of Equipment - - - - 103,000 - 103,000 Total Other Financing Sources (Uses)1,003,628 - - - 1,425,635 (2,326,263) 103,000 NET CHANGE IN FUND BALANCES 2,174,978 59,540 42,071 65,120 453,891 (2,287,119) 508,481 Fund Balances - Beginning of Year 2,456,284 208,585 254,877 266,991 319,726 2,287,119 5,793,582 FUND BALANCES - END OF YEAR 4,631,262$ 268,125$ 296,948$ 332,111$ 773,617$ -$ 6,302,063$ Debt Service CORDILLERA METROPOLITAN DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (5) Net Change in Fund Balances - Governmental Funds 508,481$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. In the statement of activities, capital outlay is not reported as an expenditure. However, the statement of activities will report as depreciation expense the allocation of the cost of any depreciable asset over the estimated useful life of the asset. Capital outlay, the conveyance of capital assets to other governments and depreciation expense in the current period are as follows: Current Year Capital Assets 932,356 Depreciation (1,322,538) Gain on Capital Assets (59,350) The issuance of long-term debt (e.g. bonds, leases, and other obligations) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of government funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Loan Principal 1,690,000 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Accrued Loan Interest - Change in Liability 3,099 Amortization of Cost of Loan Refunding (6,809) Changes in Net Position of Governmental Activities 1,745,239$ CORDILLERA METROPOLITAN DISTRICT GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (6) Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Property Taxes 4,439,776$ 4,439,776$ 4,459,898$ 20,122$ Specific Ownership Taxes 314,445 314,445 243,374 (71,071) Community Operations Revenue 15,000 15,000 29,767 14,767 CPOA Administration Fees 427,739 427,739 431,432 3,693 Equestrian Center 447,762 447,762 485,596 37,834 Net Investment Income 50,000 50,000 12,228 (37,772) Other Revenue 42,625 42,625 134,656 92,031 Public Safety Revenue 72,580 72,580 46,440 (26,140) Total Revenues 5,809,927 5,809,927 5,843,391 33,464 EXPENDITURES Community Operations Wages and Benefits 1,064,679 1,064,679 944,070 120,609 Operations 715,253 715,253 688,445 26,808 Equestrian Center Wages and Benefits 305,959 305,959 264,551 41,408 Operations 144,812 144,812 116,145 28,667 General and Administration Wages and Benefits 725,810 1,156,714 1,117,122 39,592 Operations 611,074 641,530 708,474 (66,944) Public Safety Wages and Benefits 827,886 827,886 752,038 75,848 Operations 60,816 60,816 81,196 (20,380) Total Expenditures 4,456,289 4,917,649 4,672,041 245,608 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,353,638 892,278 1,171,350 279,072 OTHER FINANCING SOURCES (USES) Transfers In (Out)(1,282,353) 1,003,628 1,003,628 - Total Other Financing Sources (Uses)(1,282,353) 1,003,628 1,003,628 - NET CHANGE IN FUND BALANCE 71,285 1,895,906 2,174,978 279,072 Fund Balance - Beginning of Year 2,670,431 2,456,284 2,456,284 - FUND BALANCE - END OF YEAR 2,741,716$ 4,352,190$ 4,631,262$ 279,072$ Budget CORDILLERA METROPOLITAN DISTRICT WILDLIFE MITIGATION FUND STATEMENT OF FIDUCIARY NET POSITION YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (7) Fiduciary ASSETS CURRENT ASSETS Cash and Investments 250,880$ Total Assets 250,880$ LIABILITIES AND NET POSITION NET POSITION Held in Trust for Wildlife Mitigation Purposes 250,880$ Total Liabilities and Net Position 250,880$ CORDILLERA METROPOLITAN DISTRICT WILDLIFE MITIGATION FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED DECEMBER 31, 2021 See accompanying Notes to Basic Financial Statements. (8) Fiduciary REVENUES Net Investment Income 398$ Total Revenues 398 CHANGE IN NET POSITION 398 Total Net Position - Beginning of Year 250,482 TOTAL NET POSITION - END OF YEAR 250,880$ CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (9) NOTE 1 DEFINITION OF REPORTING ENTITY Cordillera Metropolitan District (the District) is a quasi-municipal corporation organized and operated pursuant to provisions set forth in the Colorado Special District Act. The District was established to provide water, streets, safety controls, fire protection, cable television system, transportation and mosquito control within its boundaries which are located in Eagle County, Colorado. An amendment to the District’s service plan in 1997 gave the District powers to provide parks and recreation facilities and services. An amended and restated service plan, approved in 2005, gave the District the authority to exercise all of the powers authorized pursuant to the Colorado Special District Act. The District’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established by GAAP used by the District are discussed below. The District is governed by an elected Board which is responsible for setting policy, appointing administrative personnel and adopting an annual budget in accordance with the provisions of the Colorado Special District Act. The reporting entity consists of (a) the primary government; i.e., the District, and (b) organizations for which the District is financially accountable. The District is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits, to, or to impose specific financial burdens on, the District. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the District. Organizations for which the nature and significance of their relationship with the District are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. Based on the criteria discussed above, the District is not financially accountable for any other entity, nor is the District a component unit of any other government. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant accounting policies of the District are described as follows: Government-Wide and Fund Financial Statements The government-wide financial statements include the statement of net position and the statement of activities. These financial statements include all of the activities of the District. The effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (10) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government-Wide and Fund Financial Statements (Continued) The statement of net position reports all financial and capital resources of the District. The difference between the sum of assets and deferred outflows and the sum of liabilities and deferred inflows is reported as net position. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The major sources of revenue susceptible to accrual are property taxes. All other revenue items are considered to be measurable and available only when cash is received by the District. Expenditures, other than interest on long-term obligations, are recorded when the liability is incurred or when the long-term obligation is due. The District reports the following major governmental funds: The General Fund is the District’s primary operating fund. It accounts for all financial resources not required to be accounted for in another fund. The Debt Service Fund – Cordillera Metropolitan District is used to account for the accumulation of financial resources to be used for the payment of general long-term debt principal, interest, and other related costs for debt issued by the District. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (11) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The Debt Service Fund – Cordillera Mountain Metropolitan District is used to account for the accumulation of financial resources to be used for the payment of general long-term debt principal, interest, and other related costs for debt issued by Cordillera Mountain Metropolitan District prior to the consolidation with the District. The Debt Service Fund – Debt Service Reserve is used to account for the accumulation of financial resources contributed by Cordillera Property Owners Association to be used restrictively and exclusively for the payment of general long-term debt principal, interest, and other related costs for debt issued by Cordillera Metropolitan District and by Cordillera Mountain Metropolitan District prior to the consolidation with the District. The Capital Projects Fund is used to account for the acquisition and construction of major capital facilities. Additionally, the District reports the following fiduciary fund: The Wildlife Mitigation Trust Fund is used to account for resources legally held in trust for use by the District for projects related solely to mitigating impacts on wildlife within the District. All investment earnings are available to be used for such projects at the direction of the District’s wildlife mitigation committee. The trust agreement requires preservation of the principal balance of approximately $170,700. Budgets In accordance with the 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. The District has amended its annual budget for the year ended December 31, 2021. Pooled Cash and Investments The District follows the practice of pooling cash and investments of all funds to maximize investment earnings. 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. Investment earnings are allocated periodically to the participating funds based upon each fund’s average equity balance in the total cash. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (12) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Taxes Property taxes are levied by the District’s Board of Directors. The levy is based on assessed valuations 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 properties 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 taxpayer’s election, in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are 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 they are levied and measurable. The unearned property tax revenues are recorded as revenue in the year they are available or collected. Accounts Receivable, Allowance for Doubtful Accounts User fees constitute a perpetual lien on or against the property served until paid. Such liens may be foreclosed upon as provided by the state of Colorado. Therefore, no provision for uncollectible receivables has been made in the financial statements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported by the District. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Depreciation expense has been computed using the straight-line method over the following estimated economic useful lives. Infrastructure, Buildings and Improvements 30 to 40 Years Water and Sewer Systems 20 Years Vehicles and Equipment 5 Years Deposits Held Deposits held represent refundable deposits held until the expiration of the lease, these are reported in the government-wide financial statements. Governmental funds report the liability when due. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (13) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Compensated Absences Vacation benefits are accrued as a liability as the benefits are earned if the employees’ rights to receive compensation are attributable to services already rendered and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means. All compensated absence liabilities include salary-related payments, where applicable. The total compensated absence liability is reported on the government-wide financial statements. Governmental funds report the compensated absence liability at the fund reporting level only when due. Tap Fees and Contributed Assets Tap fees are paid for the right to connect to the District’s water facilities and are recorded as capital contributions when received. Public improvements contributed to the District by other entities are recorded as capital contributions and additions to capital assets at estimated fair value when received. Amortization Cost of Refunding In the government-wide financial statements, the deferred cost of refunding is being amortized using the interest method over the life of the refunding. The amortization amount is a component of interest expense and the unamortized deferred cost is reflected as a deferred outflow of resources. Deferred Inflow of Resources In addition to liabilities, the statement of net position reports 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 and so will not be recognized as an inflow of resources (revenue) until that time. The District has one item that qualifies for reporting in this category. Accordingly, the item, deferred property tax revenue, is deferred and recognized as an inflow of resources in the period that the amount becomes available. Equity Net Position For government-wide presentation purposes when both restricted and unrestricted resources are available for use, it is the District’s practice to use restricted resources first, then unrestricted resources as they are needed. Fund Balance 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: CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (14) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Equity (Continued) Fund Balance (Continued) Nonspendable Fund Balance – The portion of fund balance that cannot be spent because it is either not in spendable form (such as prepaid amounts or inventory) or legally or contractually required to be maintained intact. Restricted Fund Balance – The portion of fund balance that is constrained to being used for a specific purpose by external parties (such as debt holders), constitutional provisions, or enabling legislation. Committed Fund Balance – 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 through formal action of the Board of Directors. Assigned Fund Balance – The portion of fund balance that is constrained by the government’s intent to be used for specific purposes, but is neither restricted nor committed. Intent is expressed by the Board of Directors to be used for a specific purpose. Constraints imposed on the use of assigned amounts are more easily removed or modified than those imposed on amounts that are classified as committed. Unassigned Fund Balance – The residual portion of fund balance that does not meet any of the criteria described above. If more than one classification of fund balance is available for use when an expenditure is incurred, it is the District’s practice to use the most restrictive classification first. NOTE 3 CASH AND INVESTMENTS Cash and investments as of December 31, 2021, are classified in the accompanying financial statements as follows: Statement of Net Position: Cash and Investments 5,364,779$ Cash and Investments - Restricted 1,035,640 Total Cash and Investments 6,400,419$ Cash and investments as of December 31, 2021 consist of the following: Deposits with Financial Institutions 596,399$ Investments 6,054,900 Total Cash and Investments 6,651,299$ CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (15) NOTE 3 CASH AND INVESTMENTS (CONTINUED) Deposits with Financial Institutions 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 determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool for all the uninsured public deposits as a group is to be maintained by another institution or held in trust. The market value of the collateral must be at least 102% of the aggregate uninsured deposits. The State Commissioners for banks and financial services are required by statute to monitor the naming of eligible depositories and reporting of the uninsured deposits and assets maintained in the collateral pools. Citywide Bank Money Market Account The Fiduciary Fund monies that are included in the trust accounts at Citywide Bank are invested in a Public Fund Premium Money Market Account. This portfolio is a money market and each share is equal in value to $1.00. At December 31, 2021, the District’s cash deposits had a bank balance of $598,154 and a carrying balance of $596,399. Investments The District has adopted a formal investment policy which follows state statutes regarding investments. The District generally limits its concentration of investments to those noted with an asterisk (*) below, which are believed to have minimal credit risk, minimal interest rate risk and no foreign currency risk. Additionally, the District is not subject to concentration risk or investment custodial risk disclosure requirements for investments that are in the possession of another party. Colorado revised statutes limit investment maturities to five years or less unless formally approved by the Board of Directors. Such actions are generally associated with a debt service reserve or sinking fund requirements. Colorado statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include: . Obligations of the United States, certain U.S. government agency securities and securities of the World Bank . General obligation and revenue bonds of U.S. local government entities . Certain certificates of participation . Certain securities lending agreements . Bankers’ acceptances of certain banks CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (16) NOTE 3 CASH AND INVESTMENTS (CONTINUED) Investments (Continued) . Commercial paper . Written repurchase agreements and certain reverse repurchase agreements collateralized by certain authorized securities . Certain money market funds . Guaranteed investment contracts * Local government investment pools As of December 31, 2021, the District had the following investments: Investment Maturity Amount Colorado Local Government Liquid Asset Weighted-Average Trust (COLOTRUST) Under 60 Days 6,054,900$ 6,054,900$ COLOTRUST The District invested in the Colorado Local Government Liquid Asset Trust (COLOTRUST) (the Trust), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all state statutes governing the Trust. The Trust operates similarly to a money market fund and each share is equal in value to $1.00. The Trust offers shares in two portfolios, COLOTRUST PRIME and COLOTRUST PLUS+. Both portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. COLOTRUST PLUS+ may also invest in certain obligations of U.S. government agencies, highest rated commercial paper, and any security allowed under CRS 24-75-601. A designated custodial bank serves as custodian for the Trust’s portfolios pursuant to a custodian agreement. The custodian acts as safekeeping agent for the Trust’s investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian’s internal records segregate investments owned by the Trust. COLOTRUST is rated AAAm by Standard & Poor’s. COLOTRUST records its investments at fair value and the District records its investment in COLOTRUST at net asset value as determined by fair value. There are no unfunded commitments, the redemption frequency is daily, and there is no redemption notice period. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (17) NOTE 4 CAPITAL ASSETS An analysis of the changes in capital assets for the year ended December 31, 2021, follows: Balance at Balance at December 31,December 31, 2020 Increases Decreases 2021 GOVERNMENTAL ACTIVITIES Capital Assets, Not Being Depreciated: Land 7,285,224$ -$ -$ 7,285,224$ Total Capital Assets, Not Being Depreciated 7,285,224 - - 7,285,224 Capital Assets, Being Depreciated: Buildings 5,640,704 - - 5,640,704 Improvements 4,842,451 30,496 - 4,872,947 Infrastructure 18,193,281 630,678 - 18,823,959 Vehicles and Equipment 3,883,145 271,182 136,357 4,017,970 Total Capital Assets, Being Depreciated 32,559,581 932,356 136,357 33,355,580 Less Accumulated Depreciation for: Buildings 4,798,697 221,493 - 5,020,190 Improvements 3,847,496 208,326 - 4,055,822 Infrastructure 14,365,334 445,067 - 14,810,401 Vehicles and Equipment 2,756,513 447,652 77,007 3,127,158 Total Accumulated Depreciation 25,768,040 1,322,538 77,007 27,013,571 Total Capital Assets, Being Depreciated, Net 6,791,541 (390,182) 59,350 6,342,009 Governmental Activities Capital Assets, Net 14,076,765$ (390,182)$ 59,350$ 13,627,233$ Depreciation expense was charged to functions/programs of the District as follows: Governmental Activities: General Government 1,322,538$ Total Depreciation Expense - Governmental Activities 1,322,538$ CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (18) NOTE 5 LONG-TERM OBLIGATIONS The following is an analysis of changes in general long-term obligations for the year ended December 31, 2021: Balance at Balance at Due December 31,December 31,Within 2020 Additions Reductions 2021 One Year GOVERNMENTAL ACTIVITIES General Obligation Loan/ Bonds Payable: CMD Series 2012 1,995,000$ -$ 985,000$ 1,010,000$ 1,010,000$ CMMD Series 2015 495,000 - 255,000 240,000 240,000 CMMD Series 2017B 915,000 - 450,000 465,000 465,000 Total 3,405,000$ -$ 1,690,000$ 1,715,000$ 1,715,000$ T he detail of the District’s long-term obligation is as follows: General Obligation Refunding Bonds, Series 2012 – Cordillera Metropolitan District The District issued $6,500,000 of General Obligation Refunding Loan dated December 3, 2012 with an interest rate of 2.24%, payable on June 1 and December 1. The principal on the bonds is payable on December 1 and matures in various increments through 2022. Proceeds from the loan issuance were used to advance refund all of the Cordillera Metropolitan District Series 2002 Bonds. General Obligation Refunding Bonds, Series 2015 – Cordillera Mountain Metropolitan District The District issued $1,650,000 of General Obligation Refunding Bonds dated May 18, 2015 with interest rate of 2.05%, payable on June 1 and December 1. The principal on the bonds is payable on December 1 and matures in various increments through 2022. Proceeds from the Bond issuance were used to advance refund the Series 2002A Bonds with a present value savings of $212,384. General Obligation Refunding Loan Series 2017B – Colorado Mountain Metropolitan District The District issued $3,470,000 of General Obligation Refunding Loan dated September 12, 2017 with and interest rate of 2.18%. The principal on the Loan is payable on December 1 of each year and matures in 2022. The proceeds from the Loan issue were used to advance refund Series 2006A Bonds. The District’s long-term obligations will mature as follows: Governmental Activities Year Ending December 31,Principal Interest Total 2022 1,715,000$ 37,995$ 1,752,995$ Total 1,715,000$ 37,995$ 1,752,995$ CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (19) NOTE 6 NET POSITION The District has net position consisting of three components - net investment in capital assets, restricted, and unrestricted. Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. As of December 31, 2021, the District had net investments in capital assets as follows: Governmental Activities Net Investment in Capital Assets Capital Assets, Net 13,627,233$ Current Portion of Long-Term Obligations (1,715,000) Total 11,912,233$ Restricted assets include net position that is restricted for use either externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The District had restricted net position as of December 31, 2021, as follows: Governmental Activities Restricted Net Position: Emergency Reserves 146,000$ Debt Service Reserve 894,018 Total Restricted Net Position 1,040,018$ The District’s unrestricted net position as of December 31, 2021 is $5,266,902. NOTE 7 AGREEMENTS Water Service Agreement The District, the Edwards Metropolitan District and the Upper Eagle Regional Water District are parties to an Amended and Restated Water Service Agreement dated March 25, 2004 (the Water Service Agreement), concerning the provision of treated water to the area within the District. The Water Service Agreement provides that the Water District shall provide water service to the property within the District up to a maximum of 1,685 single family equivalent units, comprised of 1,522 residential units and 135 commercial units. Water rights and system infrastructure serving the District were originally owned by the Squaw Creek Metropolitan District and were transferred to the District in 2003. These assets were further transferred to the Water District in 2004. Water users within the District pay periodic water service charges to the Water District. Under the Water Services Agreement, in 2004, the District paid to the Water District $882,500 to be used by the Water District for the purchase and/or lease of water rights sufficient to augment current rights held to extent necessary to accommodate future growth within the District. In 2007 the District received a refund of $520,340 from the Water District pursuant to the agreement. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (20) NOTE 7 AGREEMENTS (CONTINUED) Retirement Plan The District participates in the Security Benefit, multiple-employer public employee retirement systems that are qualified plans as defined by IRS Code Section 401(A) and 457 and Colorado Revised Statutes (CRS) 24.54. The plans provide retirement benefits through a defined contribution plan to participating counties, municipalities, and special districts. In a defined contribution plan, benefits depend solely on amounts contributed to the plan, plus investment earnings. There are no unfunded past service liabilities. All full-time and part- time regular employees are required to participate in the 401(A) plan after approximately one month of service. The District contributes 6.2% of employee compensation, excluding overtime and bonuses. The employee is required to contribute an amount at least equal to the District’s contribution. District employees may also choose to participate in the 457 plan. The District provides a match of 100% of employee contributions up to 5% of compensation, to the 457 plan up to the annual IRS limits on individual contributions. Actual Contributions amounted to 61,601 during 2021. The District and employees each made the required 6.2% minimum contributions to the 401(A) plan in 2021 of $139,870. Required contribution rates may be amended within the statutory limits by the Board of Directors of the District. NOTE 8 CORDILLERA PROPERTY OWNERS ASSOCIATION Effective January 1, 2020, the District entered into an agreement with Cordillera Property Owners Association (the Association) to provide general administrative, management, design review services, public safety, covenant enforcement and other such services for the Association. The agreement has an initial term expiring December 31, 2020 and is annually renewable, for a 12-month term, unless terminated by either party. The District received cash of $222,727 for services under the agreement during 2021. The Association owes the District $232,242 at December 31, 2021. NOTE 9 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 (the Pool). 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 any of the past three fiscal years. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (21) NOTE 9 RISK MANAGEMENT (CONTINUED) The District pays annual premiums to the Pool for liability, property, public officials’ liability, and workers’ compensation 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 10 TAX, SPENDING, AND DEBT LIMITATIONS In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20; commonly known as the Taxpayer’s Bill of Rights (TABOR). TABOR contains revenue, spending, tax and debt limitations which apply to the state of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. Further, the District’s operations and maintenance mill levy may be adjusted to: (i) account for changes in law or the method by which assessed valuations are calculated, and (ii) offset any property tax cut or limit which is mandated by the State constitution. On November 4, 2003, the District’s electors approved a ballot question which permits the District to impose a mill levy for operations, maintenance and other expenses sufficient to generate a maximum of $2,700,000 in revenues in collection year 2004 and every year thereafter. Such taxes may increase as allowed by Sections 29-1-301 of the Colorado Revised Statutes, which generally permits annual increases of no more than 5.5%. Further, the District’s operations and maintenance mill levy may be adjusted to: (i) account for changes in law or the method by which assessed valuations are calculated, and (ii) offset any property tax cut or limit which is mandated by the State constitution. On November 4, 2008 the District’s electors approved a ballot question authorizing the district to collect, retain and spend the full amount of all taxes, tax increment revenues, tap fees, park fees, facility fees, service charges, inspection charges, administrative charges, contract payments, grants or any other fee, rate, toll, penalty or charge authorized by law or contract to be imposed collected received by the district in 2008 and each fiscal year thereafter without regard to any spending, revenue-raising or other limitations imposed by TABOR or Colorado law. CORDILLERA METROPOLITAN DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 (22) NOTE 10 TAX, SPENDING, AND DEBT LIMITATIONS (CONTINUED) 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. 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. (23) SUPPLEMENTARY INFORMATION CORDILLERA METROPOLITAN DISTRICT CORDILLERA METROPOLITAN DISTRICT DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2021 (24) Variance with Original Final Budget and Final Actual Positive Budget Amounts (Negative) REVENUES Property Taxes 1,002,395$ 1,001,098$ (1,297)$ Specific Ownership Taxes - 54,948 54,948 Transfer from CPOA 61,890 61,890 - Net Investment Income 46,667 2,008 (44,659) Total Revenues 1,110,952 1,119,944 8,992 EXPENDITURES Bond Interest 45,308 45,309 (1) Bond Principal 985,000 985,000 - County Treasurer's Fees 30,702 30,095 607 Total Expenditures 1,061,010 1,060,404 606 NET CHANGE IN FUND BALANCE 49,942 59,540 9,598 Fund Balance - Beginning of Year 73,730 208,585 134,855 FUND BALANCE - END OF YEAR 123,672$ 268,125$ 144,453$ CORDILLERA METROPOLITAN DISTRICT CORDILLERA MOUNTAIN METROPOLITAN DISTRICT DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2021 (25) Variance with Original Final Budget and Final Actual Positive Budget Amounts (Negative) REVENUES Property Taxes 741,910$ 757,378$ 15,468$ Specific Ownership Taxes - 40,662 40,662 Net Investment Income 15,670 2,185 (13,485) Total Revenues 757,580 800,225 42,645 EXPENDITURES Bond Interest 30,372 30,372 - Bond Principal 705,000 705,000 - County Treasurer's Fees 22,257 22,782 (525) Total Expenditures 757,629 758,154 (525) NET CHANGE IN FUND BALANCE (49) 42,071 42,120 Fund Balance - Beginning of Year 201,609 254,877 53,268 FUND BALANCE - END OF YEAR 201,560$ 296,948$ 95,388$ CORDILLERA METROPOLITAN DISTRICT DEBT SERVICE RESERVE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2021 (26) Variance with Original Final Budget and Final Actual Positive Budget Amounts (Negative) REVENUES Transfer from CPOA 65,110$ 65,110$ -$ Net Investment Income - 10 10 Total Revenues 65,110 65,120 10 EXPENDITURES - - - NET CHANGE IN FUND BALANCE 65,110 65,120 10 Fund Balance - Beginning of Year 267,667 266,991 (676) FUND BALANCE - END OF YEAR 332,777$ 332,111$ (666)$ CORDILLERA METROPOLITAN DISTRICT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2021 (27) Variance with Original Final Budget and Final Actual Positive Budget Amounts (Negative) REVENUES Bearcat Stables 12,197$ 9,197$ (3,000)$ Water Tap Fees - 36,354 36,354 Total Revenues 12,197 45,551 33,354 EXPENDITURES Accounting Software 40,000 3,825 36,175 Building 14,500 10,620 3,880 Equipment 52,000 47,484 4,516 Flower Beds Xeriscaping 10,000 2,538 7,462 Grenada Glen Pavilion - 8,870 (8,870) Healthy Forest 25,000 24,980 20 Heavy Equipment Replacement 225,700 183,598 42,102 Horses and Tack - 15,181 (15,181) IT - Security Systems Improvements 19,200 24,667 (5,467) Lift and Salt Shed - (3,227) 3,227 Paddock Fencing/Jumps 48,000 24,952 23,048 Ponds Repair/Improvements 7,000 - 7,000 Road Program 634,000 630,678 3,322 Synexsis - 2,324 (2,324) Traffic Calming 40,000 40,805 (805) Total Expenditures 1,115,400 1,017,295 98,105 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,103,203) (971,744) 131,459 OTHER FINANCING SOURCES (USES) Transfers In (Out)1,282,353 1,322,635 40,282 Sale of Equipment - 103,000 103,000 Total Other Financing Sources (Uses)1,282,353 1,425,635 143,282 NET CHANGE IN FUND BALANCE 179,150 453,891 274,741 Fund Balance - Beginning of Year 320,204 319,726 (478) FUND BALANCE - END OF YEAR 499,354$ 773,617$ 274,263$ CORDILLERA METROPOLITAN DISTRICT WATER FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2021 (28) Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Water Tap Fees -$ 90,133$ 40,282$ (49,851)$ Total Revenues - 90,133 40,282 (49,851) EXPENDITURES Printing - - 1,138 (1,138) Total Expenditures - - 1,138 (1,138) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - 90,133 39,144 (50,989) OTHER FINANCING SOURCES (USES) Transfers In (Out)- (2,350,000) (2,326,263)23,737 Total Other Financing Sources (Uses)- (2,350,000) (2,326,263) 23,737 NET CHANGE IN FUND BALANCE - (2,259,867) (2,287,119) (27,252) Fund Balance - Beginning of Year 2,259,867 2,259,867 2,287,119 27,252 FUND BALANCE - END OF YEAR 2,259,867$ -$ -$ -$ Budget (29) OTHER INFORMATION CORDILLERA METROPOLITAN DISTRICT SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY DECEMBER 31, 2021 (30) Bonds/Loans Series 2012 Series 2015 and Interest Interest Rate of 2.24%Interest Rate of 2.05% Maturing in the Year Ending December 31,Principal Interest Total Principal Interest Total 2022 1,010,000$ 22,938$ 1,032,938$ 240,000$ 4,920$ 244,920$ Total 1,010,000$ 22,938$ 1,032,938$ 240,000$ 4,920$ 244,920$ Dated December 3, 2012 Interest Due June 1 and December 1 Principal Due December 1 $6,500,000 Cordillera Metropolitan District G.O. Refunding Loan $1,650,000 Cordillera Mountain Metropolitan District G.O. Refunding Bonds Dated May 18, 2015 Interest Due June 1 and December 1 Principal Due December 1 CORDILLERA METROPOLITAN DISTRICT SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY (CONTINUED) DECEMBER 31, 2021 (31) Bonds/Loans and Interest Maturing in the Year Ending December 31,Principal Interest Total Principal Interest Total 2022 465,000$ 10,137$ 475,137$ 1,715,000$ 37,995$ 1,752,995$ Total 465,000$ 10,137$ 475,137$ 1,715,000$ 37,995$ 1,752,995$ Total Cordillera Mountain Metropolitan District G.O. Refunding Loan $3,470,000 Principal Due December 1 Interest Rate 2.18% Interest Due June 1 and December 1 Series 2017B Dated September 12, 2017 CORDILLERA METROPOLITAN DISTRICT FIVE YEAR SUMMARY OF ASSESSED VALUATION, MILL LEVY AND PROPERTY TAXES COLLECTED DECEMBER 31, 2021 (32) Prior Year Assessed Valuation for Current Year Debt Percent Year Ended Property Tax General Service Collected December 31,Levy Fund Fund Levied Collected to Levied Cordillera Metropolitan District 2017 80,935,260$ - 20.797 1,683,211$ 1,679,357$ 99.77% 2018 76,792,530 - 21.919 1,683,215 1,675,077 99.52 2019 76,496,570 - 24.733 1,891,990 1,864,434 98.54 2020 73,789,960 - 13.552 1,000,002 990,684 99.07 2021 73,966,590 - 13.552 1,002,395 1,001,098 99.87 Estimate for Year Ending December 31, 2022 84,993,090$ - 11.242 955,492$ Cordillera Mountain Metropolitan District 2017 19,146,270$ - 41.478 794,149$ 785,630$ 98.93% 2018 19,864,220 - 39.979 794,152 793,152 99.87 2019 19,913,790 - 45.195 900,004 900,003 100.00 2020 19,027,630 - 39.154 745,008 717,536 96.31 2021 18,948,510 - 39.154 741,910 757,378 102.08 Estimate for Year Ending December 31, 2022 19,039,100$ - 29.938 569,993$ Cordillera Metropolitan District (Consolidated) 2017 98,333,990$ 38.034 - 3,740,035$ 3,725,010$ 99.60% 2018 94,856,760 41.598 - 3,945,852 3,929,061 99.57 2019 94,611,250 44.284 - 4,189,765 4,168,492 99.49 2020 90,695,930 48.736 - 4,420,157 4,439,776 100.44 2021 91,098,490 48.736 - 4,439,776 4,459,898 100.45 Estimate for Year Ending December 31, 2022 102,261,540$ 46.039 - 4,708,019$ NOTE: Property taxes collected in any one year include collection of delinquent property taxes levied in prior years. Information received from the County Treasurer does not permit identification of specific year of levy. Total Property Taxes Mills Levied