HomeMy WebLinkAbout2023 RSRMD Annual Report{00930563.DOCX / }
RED SKY RANCH METROPOLITAN DISTRICT
EAGLE COUNTY, COLORADO
2023 ANNUAL REPORT
County Clerk and Recorder
Eagle County, Colorado
via Email
Office of the State Auditor
1525 Sherman Street, 7th Floor
Denver, Colorado 80203
via E-Filing Portal
Division of Local Government
1313 Sherman Street, Room 521
Denver, Colorado 80203
via E-Filing Portal
Pursuant to Section 32-1-207(3)(c)(I), C.R.S., the Red Sky Ranch Metropolitan District
(the “District”) is required to submit an annual report for the preceding calendar year (the
“Report”) no later than October 1 of each year to Eagle County, Colorado (the “County”), the
Colorado Division of Local Government, the Colorado State Auditor, the County Clerk and
Recorder; the Report must also be posted on the District’s website, if available.
For the year ending December 31, 2023, the District makes the following report:
1. Boundary changes made:
None
2. Intergovernmental agreements entered into or terminated:
The District did not enter into, nor terminate, any Intergovernmental Agreements
with other governmental entities in 2023.
3. Access information to obtain a copy of the Rules and Regulations:
The Rule & Regulations can be access by the public on the Districts website:
https://redskyranchmetro.net/ under “Governing Documents” menu item.
4. A summary of any litigation involving public improvements by the District:
In May 2022, the Red Sky Ranch Metropolitan District filed a district court complaint
against the developer (Vail Resorts), Holland Creek Metropolitan District, and others,
asserting claims related to district governance and the development and financing of
public infrastructure. The case was dismissed in part, and the partial dismissal is before
the Court of Appeals. The remaining claims are stayed pending the Court of Appeals
action.
{00930563.DOCX / } 2
5. Status of the construction of public improvements by the District:
None
6. List of facilities or improvements constructed by the District that were
conveyed to the County:
No facilities or improvements were constructed by the District and conveyed to
the County in 2023.
7. Final Assessed Value of Taxable Property within the District’s boundaries as
of December 31, 2023:
The 2023 total assessed value of taxable property within the boundaries of the
District is $27,516,300.
8. Current annual budget of the District:
Attached as Exhibit A is a copy of the District’s Budget for the current fiscal year
2024.
9. Most recently filed audited financial statements of the District. To the extent
audited financial statements are required by state law or most recently filed
audit exemption:
Attached as Exhibit B is a copy of the District’s audited financial statements for
fiscal year 2023.
10. Notice of any uncured defaults existing for more than 90 days under any debt
instrument of the District:
The District is not in default on any debt instrument.
11. The District’s inability to pay any financial obligations as they come due
under any obligation which continues beyond a ninety-day period:
To our knowledge, the District has the ability to pay all financial obligations as
required pursuant to the terms of the financial instruments.
Respectfully submitted this 26th day of September, 2024
RED SKY RANCH
METROPOLITAN DISTRICT
Eagle County, Colorado
{00930563.DOCX / } 3
EXHIBIT A
2024 Budget
RED SKY RANCH METROPOLITAN DISTRICT
__________________________________________
Administrative Management Provided By Marchetti & Weaver LLC
28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) 926-6060; Fax (970) 926-6040
January 18, 2024
Division of Local Government
1313 Sherman Street, Room 521
Denver, CO 80203
Filed electronically: dlg-filing@state.co.us
RE: Red Sky Ranch Metropolitan District 2024 Budget; LGID #19074
Attached is the 2024 Budget for the Red Sky Ranch Metropolitan District in Eagle County,
Colorado, submitted pursuant to Section 29-1-113, C.R.S. This Budget was adopted on
December 22, 2023. If there are any questions on the budget, please contact Mr. Kenneth J.
Marchetti, telephone number 970-926-6060, Ext 8.
The mill levy certified to the County Commissioners of Eagle County is 5.000 mills for all
general operating purposes, subject to statutory and/or TABOR limitations; 7.743 mills for G.O.
bonds; 25.000 mills for contractual obligations; 0.000 for refund/abatement; and 0.000 mills for
Temporary Tax Credit/Mill Levy Reduction. Based on an assessed valuation of $27,516,300, the
total property tax revenue is $1,038,547.71. A copy of the certification of mill levies sent to the
County Commissioners for Eagle County is enclosed.
I hereby certify that the enclosed is a true and accurate copy of the budget and certification of tax
levies to the Board of County Commissioners of Eagle County, Colorado.
Sincerely,
____________________________________
Title ________________________________
Enclosure(s)
District Accountant/Administrator
RED SKY RANCH METROPOLITAN DISTRICT
2024 BUDGET MESSAGE
Red Sky Ranch Metropolitan District is a quasi-municipal corporation organized and operated
pursuant to provisions set forth in the Colorado Special District Act. The District was
established to supply the necessary services of water, wastewater, streets and roadways, traffic
and safety facilities, television relay and translator facilities; public park and recreation facilities
and programs, storm and/or sanitary sewers and mosquito and pest control and other
improvements needed for the Red Sky Ranch area.
The District has no employees and all operations and administrative functions are contracted.
The following budget is prepared on the modified accrual basis of accounting, which is
consistent with the basis of accounting used in presenting the District's financial statements.
2024 BUDGET STRATEGY
Red Sky Ranch Metropolitan District has joined with Holland Creek Metropolitan District in
adopting a consolidated service plan. Under this consolidated service plan, Holland Creek is
acting as the “service district” and Red Sky Ranch is acting as the “financing district.” As such,
Holland Creek Metropolitan District will manage the construction and operation of facilities and
improvements needed for the Red Sky Ranch area and Red Sky Ranch Metropolitan District will
provide funding and tax bases to support the financing plan for capital improvements.
The District is funded with a combination of property taxes and sales taxes. The sales taxes are
restricted and may only be used to provide road, road safety and transportation services including
related debt service. Property taxes are levied for general operating purposes, for debt service
and contractual obligations. The District sets the property tax mill levy rates at an amount
sufficient to fulfill provide the necessary services and fulfill the debt service and contractual
obligations.
Page 1 of 5
RESOLUTIONS OF RED SKY RANCH METROPOLITAN DISTRICT
TO ADOPT 2024 BUDGET
A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND
AND ADOPTING A BUDGET FOR THE RED SKY RANCH METROPOLITAN DISTRICT,
COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF
JANUARY 2024 AND ENDING ON THE LAST DAY OF DECEMBER 2024.
WHEREAS, the Board of Directors of the Red Sky Ranch Metropolitan District has appointed a
budget committee to prepare and submit a proposed 2024 budget at the proper time; and
WHEAREAS, such committee has submitted a proposed budget to this governing body at the
proper time, for its consideration, and;
WHEREAS, upon due and proper notice, published or posted in accordance with the law, said
proposed budget was open for inspection by the public at a designated place, and a public
hearing was opened on October 18, 2023 and continued to December 22, 2023, and interested
taxpayers were given the opportunity to file or register any objections to said proposed budget;
and;
WHEREAS, whatever increases may have been made in the expenditures, like increases were
added to the revenues or planned to be expended from reserves/fund balances so that the budget
remains in balance, as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board of directors of the Red Sky Ranch
Metropolitan District, Eagle County, Colorado:
Section 1. That the budget as submitted, amended, and summarized by fund, hereby is
approved and adopted as the budget of the Red Sky Ranch Metropolitan District
for the year stated above, as adjusted for immaterial changes in the final certified
assessed value of the District as certified by the county assessor and
corresponding adjustments resulting from such changes to the assessed value. In
the event there are material changes to the assessed value then a subsequent
meeting of the Board shall be called to consider such changes. Furthermore, to
the extent specific capital expenditures budgeted and forecasted for the current
year are unable to be completed by the end of the current year, the budget for such
expenditures shall be transferred into next year’s budget and the budgeted
beginning fund balance for next year’s budget shall be updated to reflect such
changes.
Section 2. That the budget hereby approved and adopted shall be certified by any officer or
the District Administrator of the District and made a part of the public records of
the District.
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DocuSign Envelope ID: C28E17DE-2322-41A3-A3E8-530FE6CA7088
Page 2 of 5
RESOLUTIONS OF RED SKY RANCH METROPOLITAN DISTRICT (CONTINUED)
TO SET MILL LEVIES
A RESOLUTION LEVYING PROPERTY TAXES FOR THE YEAR 2023, TO HELP
DEFRAY THE COSTS OF GOVERNMENT FOR THE RED SKY RANCH
METROPOLITAN DISTRICT, EAGLE COUNTY, COLORADO, FOR THE 2024 BUDGET
YEAR.
WHEREAS, the Board of Directors of the Red Sky Ranch Metropolitan District, has adopted the
annual budget in accordance with the Local Government Budget Law, on December 22, 2023
and;
WHEREAS, the amount of money necessary to balance the budget for general operating
expenses and capital expenditure purposes from property tax revenue is $137,582 and;
WHEREAS, the amount of money necessary to balance the budget for capital expenditure
purposes from property tax revenue approved by voters or at public hearing is $0.00, and;
WHEREAS, the amount of money necessary to balance the budget for voter approved bonds and
interest is $213,059, and;
WHEREAS, the amount of money necessary to balance the budget for voter approved
contractual obligations $687,908, and;
WHEREAS, the 2023 valuation for assessment for the Red Sky Ranch Metropolitan District, as
certified by the County Assessor is $27,516,300.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the RED SKY RANCH
METROPOLITAN DISTRICT, EAGLE COUNTY, COLORADO:
Section 1. That for the purposes of meeting all general operating expenses of the Red Sky
Ranch Metropolitan District during the 2024 budget year, there is hereby levied a
tax of 5.000 mills upon each dollar of the total valuation for assessment of all
taxable property within the District for the year 2023.
Section 2. That for the purposes of rendering a temporary credit/refund during budget year
2024 there is hereby levied a temporary tax credit/mill levy reduction of 0.000
mills upon each dollar of the total valuation for assessment of all taxable property
within the District for the year 2023.
Section 3. That for the purpose of meeting all capital expenditures of the Red Sky Ranch
Metropolitan District during the 2024 budget year, there is hereby levied a tax of
0.000 mills upon each dollar of the total valuation for assessment of all taxable
property within the District for the year 2023.
DocuSign Envelope ID: C28E17DE-2322-41A3-A3E8-530FE6CA7088
Page 3 of 5
RESOLUTIONS OF RED SKY RANCH METROPOLITAN DISTRICT (CONTINUED)
TO SET MILL LEVIES (CONTINUED)
Section 4. That for the purpose of meeting all payments for bonds and interest of the Red
Sky Ranch Metropolitan District during the 2024 budget year, there is hereby
levied a tax of 7.743 mills upon each dollar of the total valuation for assessment
of all taxable property within the District for the year 2023.
Section 5. That for the purpose of meeting all payments for contractual obligations approved
by voters of the Red Sky Ranch Metropolitan District during the 2024 budget
year, there is hereby levied a tax of 25.000 mills upon each dollar of the total
valuation for assessment of all taxable property within the District for the year
2023.
Section 6. That for the purpose of recouping refunds and abatements of the Red Sky Ranch
Metropolitan District during the 2024 budget year, there is hereby levied a tax of
0.000 mills upon each dollar of the total valuation for assessment of all taxable
property within the District for the year 2023.
Section 7. That any officer or the District Administrator is hereby authorized and directed to
either immediately certify to the County Commissioners of Eagle County,
Colorado, the mill levies for the Red Sky Ranch Metropolitan District as
hereinabove determined and set, or be authorized and directed to certify to the
County Commissioners of Eagle County, Colorado, the mill levies for the Red
Sky Ranch Metropolitan District as hereinabove determined and set based upon
the final (December) certification of valuation from the county assessor.
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DocuSign Envelope ID: C28E17DE-2322-41A3-A3E8-530FE6CA7088
Page 4 of 5
RESOLUTIONS OF RED SKY RANCH METROPOLITAN DISTRICT (CONTINUED)
TO APPROPRIATE SUMS OF MONEY
(PURSUANT TO SECTION 29-1-108, C.R.S.)
A RESOLUTION APPROPRIATING SUMS OF MONEY TO THE VARIOUS FUNDS AND
SPENDING AGENCIES, IN THE AMOUNT AND FOR THE PURPOSE AS SET FORTH
BELOW, FOR THE RED SKY RANCH METROPOLITAN DISTRICT, EAGLE COUNTY,
COLORADO, FOR THE 2024 BUDGET YEAR.
WHEREAS, the Board of Directors has adopted the annual budget in accordance with the Local
Government Budget Law, on December 20, 2023, and;
WHEREAS, the Board of Directors has made provision therein for revenues in an amount equal
or greater to the total proposed expenditures as set forth in said budget, and;
WHEREAS, it is not only required by law, but also necessary to appropriate the revenues and
reserves or fund balances provided in the budget to and for the purposes described below,
thereby establishing a limitation on expenditures for the operations of the District.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE RED
SKY RANCH METROPOLITAN DISTRICT, EAGLE COUNTY, COLORADO:
Section 1. That the following sums are hereby appropriated from the revenues of each fund,
to each fund, for the purposes stated:
GENERAL FUND:
Current Operating Expenses $231,855
SALES TAX SPECIAL REVENUE FUND
Transfer to Debt Service Fund $373,402
Contingency 25,000
Total $398,402
DEBT SERVICE FUND:
Debt Service and Contractual Obligation Expenditures $2,084,795
Transfer to Holland Creek Metropolitan District 4,385,000
Bond cost of issuance 250,377
Fund Transfers 28,186
Total $6,748,358
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DocuSign Envelope ID: C28E17DE-2322-41A3-A3E8-530FE6CA7088
Page 5 of 5
RESOLUTIONS OF RED SKY RANCH METROPOLITAN DISTRICT (CONTINUED)
TO ADOPT 2024 BUDGET, SET MILL LEVIES AND
APPROPRIATE SUMS OF MONEY
(CONTINUED)
The above resolutions to adopt the 2024 budget, set the mill levies and to appropriate sums of
money were adopted this 22nd day of December, 2023.
Attest: ___________________________________
Title: ____________________________________ President
DocuSign Envelope ID: C28E17DE-2322-41A3-A3E8-530FE6CA7088
RED SKY RANCH METROPOLITAN DISTRICT Printed Modified
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 1/21/24 Accrual
BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis
GENERAL FUND 2022 2023 2023 2024
Audited Adopted Amended Bgt Adopted BUDGET
Actual Budget and Forecast Budget ASSUMPTIONS
Assessed Valuation 27,516,300 Final AV
Each Mill Raises 27,516
Mill Levy Rate 5.000
REVENUES
Property Tax Revenue 137,582 Assd Value times Mill Levy
Specific Ownership Taxes 5,503
Interest Income 644 1,214 1,214 238 Est 4.5%
TOTAL REVENUES 644 1,214 1,214 143,323
EXPENDITURES
Insurance 3,368 4,250 4,250 4,463
Accounting & Admin
Audit 7,200 7,800 7,800 8,190
Election 20
Legal - General Counsel 44,078 30,000 82,470 95,000 Legal Counsel Estimate
Legal - Special Counsel (Placeholder in 2023 & 24)64,169 76,853 95,000 Legal Counsel Estimate
Legal - Special Counsel (Appellate Counsel)110,000 0
Office Supplies 21 50 50 75
Treasurer's Fees 4,127
Contingency Allowance 0 5,000 5,000 25,000
TOTAL EXPENDITURES 118,836 47,100 286,443 231,855
REVENUE OVER (UNDER) EXPEND.(118,193)(45,886)(285,229)(88,532)
OTHER SOURCES AND (USES)
Transfer from RSR Prop Owners Assoc 47,120 202,880 60,000
Transfer from Debt Service - Interest Inc & Net SO Tax 38,635 28,882 41,199 28,186
TOTAL OTHER SOURCES AND (USES)85,755 28,882 244,079 88,186
FUND BALANCE - BEGINNING 78,882 40,461 46,444 5,295
Reverse Contingency 0
FUND BALANCE - ENDING 46,444 23,457 5,295 4,948
= = =
Calculation of Capacity to Issue Bonds
Principal Outstanding on 2015 bonds 7,070,000 7,025,000 7,025,000 6,955,000
Principal Outstanding 2017 Bonds 1,520,000 1,460,000 1,460,000 1,460,000
Principal Outstanding 2024 Bonds
Principal Outstanding 2030 Bonds
Debt to AV Calculation
Assessed Value - Following Year 27,516,300
50% of AV (Factor per Agreement)13,758,150
Outstanding Bonds (8,485,000)
Surplus 5,273,150
PAGE 2
No assurance is provided on these financial statements and substantially
all disclosures required by GAAP have been omitted.
RED SKY RANCH METROPOLITAN DISTRICT Printed Modified
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 1/21/24 Accrual
BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis
SALES TAX Special Revenue Fund 2022 2023 2023 2024
Audited Adopted Amended Bgt Adopted BUDGET
Actual Budget and Forecast Budget ASSUMPTIONS
REVENUES
Mill Levy Equivalent of Sales Tax Revenues 14.145 23.461 13.628 Mill equivalent of sales tax
Sales Tax Revenue - 5.5% Rate (One Mo Lag)376,587 275,000 400,000 375,000 based on prior year
Interest Income 7,811 17,759 40,236 33,507 Est 4.5%
TOTAL REVENUES 384,398 292,759 440,236 408,507
EXPENDITURES
Transfer to HCMD - Sales Tax proceeds 0 0 0 0
TOTAL EXPENDITURES 0 0 0 0
REVENUE OVER (UNDER) EXPEND.384,398 292,759 440,236 408,507
OTHER SOURCES AND (USES)
Transfer from General Fund - Sales tax Balance 0 0 0
Transfer to Debt Service Fund 0 (317,288)(317,288)(373,402)Debt Svc For Roads
Contingency (25,000)
TOTAL OTHER SOURCES AND (USES)0 (317,288)(317,288)(398,402)
REVENUE OVER (UNDER) EXPEND. AFTER OTHER 384,398 (24,529)122,949 10,105
FUND BALANCE - BEGINNING 237,253 591,953 621,651 744,600
FUND BALANCE - ENDING 621,651 567,424 744,600 754,704
= =
PAGE 3
RED SKY RANCH METROPOLITAN DISTRICT Printed Modified
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 1/21/24 Accrual
BUDGET, ACTUAL AND FORECAST FOR THE PERIODS INDICATED Basis
DEBT SERVICE FUND 2022 2023 2023 2024
Audited Adopted Amended Bgt Adopted BUDGET
Actual Budget and Forecast Budget ASSUMPTIONS
Assessed Valuation 16,662,620 17,049,390 17,049,390 27,516,300 Final AV
Change 0%2%2%61%
Services/Operations Mill Levy Rate 32.000 30.916 30.916 25.000
Debt Service Mill Levy Rate 27.000 10.601 10.601 7.743
59.000 41.517 41.517 32.743
REVENUES
Property Taxes-IGA Service Cost 544,543 527,099 527,099 687,908 Assd Value times Mill Levy
Property Taxes - Debt Service 494,661 180,734 180,734 213,059 Assd Value times Mill Levy
Specific Ownership Taxes 56,269 35,392 35,392 36,039 4% of Prop tax
Developer Capital Imp. Fee 176,600 398,600 398,600 198,775 Based on Agreement
Interest Income 20,176 18,593 36,629 28,248 Est 4.5%
TOTAL REVENUES 1,292,249 1,160,417 1,178,453 1,164,028
EXPENDITURES
Series 2015 Bond Interest 344,706 343,156 343,156 341,412 Bond Schedule
Series 2017 Bond Interest 51,262 49,315 49,315 47,499 Bond Schedule
Series 2024 Bond Interest 52,000 Assumes two months interest
Series 2015 Bond Principal 40,000 45,000 45,000 70,000
Series 2017 Bond Principal 60,000 60,000 60,000 75,000
Series 2024 Bond Principal 0
Bond Paying Agent Fees 550 550 550 550
Plath Obligation 564,623 Cost Recovery Pmt, Assumes
Bond Issuance
Transfer Prop Taxes to HCMD - Service Oblig 544,543 527,099 527,099 687,908 Per IGA
Transfer Prop Taxes to HCMD - Capital Oblig 0
Transfer Developer Imp Fee-HCMD 176,600 398,600 398,600 198,775 Based on Agreement
Treasurer's Fees 31,251 21,235 21,235 27,029 3% of Prop. Taxes
Contingency for Budget 0 0 0 20,000
TOTAL EXPENDITURES 1,248,913 1,444,955 1,444,955 2,084,795
REVENUE OVER (UNDER) EXPEND.43,336 (284,538)(266,502)(920,767)
OTHER SOURCES/(USES)
Proceeds from G.O. Bonds/Loans 0 5,200,000 Debt to 50% of AV; Assumes
Voter Authorization Exists
Cost of Issuance 0 (250,377)
Transfer Bond Proceeds to HCMD 0 (4,385,000)Per IGA
Transfer from Sale Tax Fund 317,288 317,288 373,402
Transfer to Gen Fund- Net SO tax (38,635)(28,882)(41,199)(28,186)
TOTAL OTHER SOURCES/(USES)(38,635)288,406 276,089 909,840
FUND BALANCE - BEGINNING 613,451 619,768 618,152 627,739
Reverse contingency
FUND BALANCE - ENDING 618,152 623,636 627,739 616,811
= = =
Balance on RSR Bonds 8,590,000 8,485,000 13,540,000
Balance on HC 2001 Bonds 6,310,000 6,310,000 1,925,000
Total Combined Bond Debt 14,900,000 14,795,000 15,465,000
PAGE 4
No assurance is provided on these financial statements and substantially
all disclosures required by GAAP have been omitted.
87 County Tax entity code DOLA LGID/SID 19074
TO: County Commissioners1 of Eagle County , Colorado.
On behalf of the Red Sky Ranch Metropolitan District
the Board of Directors
of the Red Sky Ranch Metropolitan District
$27,516,300
$27,516,300
Submitted:12/6/2023 for budget/fiscal year 2024 .
(not later than Dec 15) (mm/dd/yyyy)(yyyy)
PURPOSE (see end notes for definitions and examples)LEVY2 REVENUE2
1.General Operating ExpensesH 5.000 mills 137,581.50$
2.(0.000)mills -$
SUBTOTAL FOR GENERAL OPERATING: 5.000 mills 137,581.50$
3.General Obligation Bonds and InterestJ 7.743 mills 213,058.71$
4.Contractual ObligationsK 25.000 mills 687,907.50$
5.Capital ExpendituresL 0.000 mills -$
6.Refunds/AbatementsM 0.000 mills -$
7.OtherN (specify):0.000 mills -$
0.000 mills -$
TOTAL:[]37.743 mills 1,038,547.71$
Daytime
phone:(970)926-6060 x8
Signed: Title:District Administrator
CERTIFICATION OF TAX LEVIES for NON-SCHOOL Governments
(taxing entity)A
(governing body)B
Contact person:
(print)Kenneth J. Marchetti
Sum of General Operating
Subtotal and Lines 3 to 7
Note: If the assessor certified a NET assessed valuation (AV)
different than the GROSS AV due to a Tax Increment
Financing (TIF) AreaF the tax levies must be calculated using
the NET AV. The taxing entity's total property tax revenue
will be derived from the mill levy multiplied against the NET
assessed valuation of:
(local government)C
Include one copy of this tax entity's completed form when filing the local government's budget by January 31st, per 29-1-113 C.R.S. with the Division of
Local Government (DLG), Room 521, 1313 Sherman Street, Denver, Colorado 80203. Questions? Call DLG (303) 864-7720.
1 If the taxing entity's boundaries include more than one county, you must certify the levies to each county. Use a separate form for each
county and certify the same levies uniformly to each county per Article X, Section 3 of the Colorado Constitution.
2 Levies must be rounded to three decimal places and revenue must be calculated from the total NET assessed valuation (Line 4 of Form
DLG57 on the County Assessor's FINAL certification of valuation).
USE VALUE FROM FINAL CERTIFICATION OF VALUATION PROVIDED BY
ASSESSOR NO LATER THAN DECEMBER 10
<Minus> Temporary General Property Tax Credit/
Temporary Mill Levy Rate ReductionI
(GrossD assessed valuation, Line 2 of the Certification of Valuation From DLG 57E)
(NETG assessed valuation, Line 4 of the Certification of Valuation Form DLG 57)
Hereby officially certifies the following mills to be
levied against the taxing entity's GROSS assessed
valuation of:
Form DLG 70 Page 1
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:Refunding of the 2003 bonds which were issued to Finance District Facilities
and for fulfilling the District's ongoing obligation to provide funds to the
Holland Creek Metropolitan District for the costs of providing District facilities
Series:General Obligation Refunding and Improvement Bonds Series 2015
Date of Issue:Apirl 15, 2015
Coupon rate: 3.875% to 5.00%
Maturity Date:December, 2044
Levy:5.966
Revenue: $164,162.25
2.Purpose of Issue:To finance District Facilities and for fulfilling the District's ongoing obligation
to provide funds to the Holland Creek Metropolitan District for the costs of
providing District Facilities.
Series:General Obligation Senior Note, Series 2017
Date of Issue:January 31, 2017
Coupon rate: 3.20%
Maturity Date:December 1, 2036
Levy:1.777
Revenue: $48,896.47
CONTRACTSK:
3.Purpose of Contract: To provide for the implementation of principles and objectives as set forth in the
Service Plan regarding financing, construction, operation and maintenance of
facilities and administation of the District's affairs
Title: District Facilities Construction and Services Agreement
Date:June 8, 2001
Principal Amount:
Maturity Date:None Stated
Levy:25.000
Revenue: $687,907.50
4.Purpose of Contract:
Title:
Date:
Principal Amount:
Maturity Date:
Levy:
Revenue:
Use multiple copies of this page as necessary to separately report all bond and contractual obligations per 32-1-1603, C.R.S.
CERTIFICATION OF TAX LEVIES, continued
Red Sky Ranch Metropolitan District
Form DLG 70 Page 2
{00930563.DOCX / }
EXHIBIT B
2023 Audited Financial Statements
Red Sky Ranch Metropolitan District
Financial Statements
December 31, 2023
i
Red Sky Ranch Metropolitan District
Financial Statements
December 31, 2023
Table of Contents
Page
INDEPENDENT AUDITOR'S REPORT A1 – A3
Management’s Discussion and Analysis B1 –B3
Government-wide Financial Statements:
Statement of Net Position C1
Statement of Activities C2
Fund Financial Statements:
Balance Sheet -Governmental Funds C3
Statement of Revenues, Expenditures and Changes in
Fund Balances -Governmental Funds C4
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual -Governmental Funds:
General Fund C5
Special Revenue Fund –Sales Tax C6
Notes to the Financial Statements D1 –D16
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual -Governmental Funds:
Debt Service Fund E1
History of Assessed Valuation, Mill Levy and Property Taxes Collected E2
Schedule of Bonds Payable to Maturity E3
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
A1
M
&
A
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Red Sky Ranch Metropolitan District
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major
fund of Red Sky Ranch Metropolitan District (the “District”), as of and for the year ended December 31,
2023, 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 accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of Red Sky Ranch
Metropolitan District, as of December 31, 2023 and the respective changes in financial position thereof
and the respective budgetary comparison for the general fund and sales tax fund for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (“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 accounting principles generally accepted in the United States of America,
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.
INDEPENDENT AUDITORS REPORT
To the Board of Directors
Red Sky Ranch Metropolitan District
A2
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 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 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
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis in Section B be presented to supplement the basic financial statements.Such
information is the responsibility of management and, 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.
INDEPENDENT AUDITORS REPORT
To the Board of Directors
Red Sky Ranch Metropolitan District
A3
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The individual fund budgetary comparisons schedules,
History of Assessed Valuation, Mill Levy, and Property Taxes Collected, and Schedule of Bonds Payable
to Maturity in Section E is presented for purposes of additional analysis and are not a required part of the
basic financial statements.The items found in section E are 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 information is fairly stated in all material respects in relation to the basic financial statements as a
whole.
McMahan and Associates, L.L.C.
Avon, Colorado
September 19, 2024
MANAGEMENT’S DISCUSSION AND ANALYSIS
B1
Red Sky Ranch Metropolitan District
Management’s Discussion and Analysis
December 31, 2023
As management of Red Sky Ranch 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, 2023.
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 includes additional supplementary information which can be found 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 the District’s assets, deferred outflows,
liabilities, and deferred inflows with the difference between the amounts 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 Holland Creek Metropolitan District. There are no
business-type activities within the District.
The government-wide financial statements can be found on pages C1 and C2 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.
B2
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 D1 through D16 of this report.
Government-wide Financial Analysis. A condensed comparative summary of the District’s
government-wide assets, liabilities, net position, revenues and expenditures follows:
2023 2022
Assets and Deferred Outflows:
Current assets 2,610,160$ 2,073,058$
Non-current assets - -
Total Assets and Deferred Outflows 2,610,160 2,073,058
Liabilities and Deferred Inflows:
Current liabilities and deferred inflows 1,415,870 924,461
Long-term liabilities outstanding 20,103,320 20,193,582
Total Liabilities and Deferred Inflows 21,519,190 21,118,043
Net Position:
Restricted 1,360,285 621,717
Unrestricted (20,269,315) (19,666,702)
Total Net Position (18,909,030)$ (19,044,985)$
Revenues:
Program revenues:
Capital improvement fees 325,989$ 176,600$
General revenues:
Property and Other Taxes 1,134,960 1,479,870
Interest and other revenue 264,197 67,939
Total Revenues 1,725,146 1,724,409
Expenses:
General Government 289,200 150,637
Intergovernmental Agreement 903,424 1,160,954
Interest on Long Term Debt 396,567 400,109
Total Expenses 1,589,191 1,711,700
Change in Net Position 135,955 12,709
Net Position - Beginning (19,044,985) (19,057,694)
Net Position - Ending (18,909,030)$ (19,044,985)$
Red Sky Ranch Metropolitan District's Net Position
Governmental Activities
Red Sky Ranch Metropolitan District's
Change in Net Position
B3
Overview of the Financial Statements (continued)
Government-wide Financial Analysis (continued)
The District is the “finance district” in a dual district structure whereby the District has and will continue to
finance the construction and operation of the infrastructure for the Red Sky Ranch subdivision. The
District has entered into a District Facilities Construction and Service Agreement with Holland Creek
Metropolitan District and pursuant to this agreement, the District is obligated pay for the construction and
initial financing for the primary infrastructure for the Red Sky Ranch area. Holland Creek Metropolitan
District is the “service district” and as such, Red Sky Ranch Metropolitan District will ultimately pay a
“capital obligation” as may be limited by the Service Plan and its electoral authority, to Holland Creek
Metropolitan District to pay for the infrastructure as well as a “service obligation” to pay for annual
infrastructure operation, maintenance, and service costs. Holland Creek Metropolitan District is obligated
to use the funds received from Red Sky Ranch Metropolitan District to construct infrastructure; pay for
infrastructure operation, maintenance, and service costs; and pay down principal and interest on Holland
Creek Metropolitan District debt issued to initially fund the infrastructure.
The District’s overall financial position, as measured by net position, increased by $135,955. The District’s
revenues consisted of property tax, sales tax and developer improvement fee revenues. The Capital
Improvement Fees provided under agreement with Vail Resorts Development Company (VRDC) were
transferred to Holland Creek and used to pay the interest expense and fees on that District’s debt.
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 $1,371,634, which reflects an increase of $85,387.
Capital assets. The District has a right to own, operate, and maintain the infrastructure. However, as
stated above, the infrastructure is currently owned, operated, and maintained by Holland Creek
Metropolitan District, thus the District currently has no capital assets.
Long-term debts. In January 2017 the District issued a general obligation senior note in the amount of
$1,780,000. The net proceeds from this note were used to provide a partial payment of the District’s
obligation to pay Holland Creek Metropolitan District for the cost of infrastructure. Holland Creek
Metropolitan District used the net proceeds of $1,690,000 for a principal repayment on their 2001 Variable
Rate Bonds. As of December 31, 2023, the outstanding balance of the Series 2017 General Obligation
Senior Note was $1,460,000 and the outstanding balance on the 2015 General Obligation Refunding and
Improvement Bonds was $7,025,000. The District’s remaining obligation to Holland Creek for the balance
of the cost of the infrastructure incurred through December 31, 2023 but reduced by prepaid service costs
is $11,823,261. Additional information can be found in the Notes to the Financial Statement on pages
D11 and D15 of this report.
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.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Assets:
Cash and cash equivalents 1,360,540
Accounts receivable - VRDC 43,876
Accounts receivable - Sales Tax 37,141
Accounts receivable - Other 124,000
Due from County Treasurer 2,964
Prepaid expenses 3,091
Property taxes receivable 1,038,548
Total Assets 2,610,160
Liabilities:
Accounts payable 153,456
Accounts payable - HCMD 46,522
Accounts payable - Developer -
Accrued interest payable 32,344
Refundable deposit -
Net capital and service obligation
payable to HCMD 11,823,261
Bonds payable:
Due within one year 145,000
Due in more than one year 8,280,059
Total Liabilities 20,480,642
Deferred Inflow of Resources:
Unavailable property tax revenue 1,038,548
Total Deferred Inflow of
Resources 1,038,548
Net Position (Deficit):
Restricted for debt service 620,438
Restricted for emergencies 8,022
Restricted for safety and transportation 731,825
Unrestricted (20,269,315)
Total Net Position (Deficit)(18,909,030)
Red Sky Ranch Metropolitan District
Statement of Net Position
December 31, 2023
The accompanying notes are an integral part of these financial statements.
C1
Program Expenses:
General government 289,200
Intergovernmental agreem ent 903,424
Interest on long-term debt 396,567
Total Program Expenses 1,589,191
Program Revenues:
Vail Resorts Development Com pany capital
im provem ent fees 325,989
Reim bursement from Red Sky Ranch Association 186,915
Total Program Revenues 512,904
Net Program (Expense)(1,076,287)
General Revenues and Transfers:
Property and specific ownership taxes 748,470
Interest income 77,282
Sales tax 386,490
Total General Revenues and Transfers 1,212,242
Change in Net Position 135,955
Net Position (Deficit) - Beginning (19,044,985)
Net Position (Deficit) - Ending (18,909,030)
Red Sky Ranch Metropolitan District
Statement of Activities
For the Year Ended December 31, 2023
The accompanying notes are an integral part of these financial statements.
C2
FUND FINANCIAL STATEMENTS
Total
Special Governmental
General Revenue Debt Service Funds
Assets:
Cash and cash equivalents 48,382 694,684 617,474 1,360,540
Accounts receivable - VRDC --43,876 43,876
Accounts receivable - Sales Tax -37,141 -37,141
Accounts receivable - Other 124,000 --124,000
Due from County Treasurer --2,964 2,964
Prepaid expenses 3,091 --3,091
Property taxes receivable 137,582 -900,966 1,038,548
Total Assets 313,055 731,825 1,565,280 2,610,160
Liabilities, Deferred Inflow of Resources,
and Fund Balances:
Liabilities:
Accounts payable 153,456 --153,456
Accounts payable - HCMD 2,646 -43,876 46,522
Total Liabilities 156,102 -43,876 199,978
Deferred Inflow of Resources:
Unavailable property tax revenue 137,582 -900,966 1,038,548
Total Deferred Inflow of Resources 137,582 -900,966 1,038,548
Fund Balances:
3,091 --3,091
8,022 --8,022
-731,825 -731,825
--620,438 620,438
Nonspendable
Restricted for emergencies
Restricted for safety and transportation
Restricted for debt service
Unassigned 8,258 --8,258
Total Fund Balances 19,371 731,825 620,438 1,371,634
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances 313,055 731,825 1,565,280
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Long-term liabilities are not due and payable in the current period
and, therefore, are not reported in the funds.(8,457,403)
Amounts due to Holland Creek Metropolitan District for capital and service
obligations are not due and payable in the current period and, therefore,
are not reported in the funds.(11,823,261)
Net Position (Deficit) of Governmental Activities (18,909,030)
Red Sky Ranch Metropolitan District
Balance Sheet
Governmental Funds
December 31, 2023
The accompanying notes are an integral part of these financial statements.
C3
Total
Special Governmental
General Revenue Debt Service Funds
Revenues:
Property and specific ownership taxes - - 748,470 748,470
VRDC capital improvement fees - - 325,989 325,989
Reimbursement from Red Sky Ranch Association 186,915 - - 186,915
Sales tax - 386,490 - 386,490
Interest 1,029 40,972 35,281 77,282
Total Revenues 187,944 427,462 1,109,740 1,725,146
Expenditures:
General government 267,388 - 21,812 289,200
Intergovernmental agreement - - 853,087 853,087
Debt service - - 497,472 497,472
Total Expenditures 267,388 - 1,372,371 1,639,759
Excess (Deficiency) of Revenues
over Expenditures (79,444) 427,462 (262,631) 85,387
Other Financial Sources (Uses):
Transfers in 52,371 - 317,288 369,659
Transfers (out)- (317,288) (52,371) (369,659)
Total Other Financing Sources (Uses)52,371 (317,288) 264,917 -
Net Change in Fund Balances (27,073) 110,174 2,286 85,387
Fund Balances - Beginning 46,444 621,651 618,152 1,286,247
Fund Balances - Ending 19,371 731,825 620,438 1,371,634
Amounts reported in the Statement of Activities are different because:
Net change in fund balances for total governmental funds 85,387
100,599
(50,031)
Change in Net Position of Governmental Activities 135,955
Some changes in long term obligations reported in the Statement of Activities do not require the use
of current financial resources and, therefore, are not reported as revenues or expenditures in
governmental funds.
The repayment of the principal of long-term debt consumes current financial resources of
governmental funds. This transaction, however, has no 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.
Red Sky Ranch Metropolitan District
Statement of Revenues, Expenditures
and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2023
The accompanying notes are an integral part of these financial statements.
C4
2022
Final
Budget
Variance
Original Final Positive
Budget Budget Actual (Negative)Actual
Revenues:
Reimbursement from Red Sky Ranch Association - 202,880 186,915 (15,965) 47,120
Interest 1,214 1,215 1,029 (186) 643
Total Revenues 1,214 204,095 187,944 (16,151) 47,763
Expenditures:
General government:
Insurance 4,250 4,250 4,220 30 3,368
Legal 30,000 269,323 255,731 13,592 108,247
Audit fees 7,800 7,800 7,400 400 7,200
Elections - 20 19 1 -
Office overhead 50 50 18 32 21
Contingency allowance 5,000 5,000 - 5,000 -
Total General Government Expenditures 47,100 286,443 267,388 19,055 118,836
Excess (Deficiency) of Revenues
over Expenditures (45,886) (82,348) (79,444) (35,206) (71,073)
Other Financing Sources (Uses):
Transfers in 28,882 41,199 52,371 11,172 38,635
Total Other Financing Sources (Uses)28,882 41,199 52,371 11,172 38,635
Net Change in Fund Balance (17,004) (41,149) (27,073) 14,076 (32,438)
Fund Balance - Beginning 40,461 46,444 46,444 - 78,882
Fund Balance - Ending 23,457 5,295 19,371 14,076 46,444
2023
Red Sky Ranch Metropolitan District
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Governmental Funds - General Fund
For the Year Ended December 31, 2023
(With Comparative Actual Amounts For the Year Ended 2022)
The accompanying notes are an integral part of these financial statements.
C5
2022
Final
Budget
Variance
Original Final Positive
Budget Budget Actual (Negative)Actual
Revenues:
Sales tax 275,000 400,000 386,490 (13,510) 376,588
Interest 17,759 40,237 40,972 735 7,810
Total Revenues 292,759 440,237 427,462 (12,775) 384,398
Excess (Deficiency) of Revenues
over Expenditures 292,759 440,237 427,462 (12,775) 384,398
Other Financing Sources:
Transfers (out)(317,288) (317,288) (317,288) - -
Total Other Financing Sources (317,288) (317,288) (317,288) - -
Net Change in Fund Balance (24,529) 122,949 110,174 (12,775) 384,398
Fund Balance - Beginning 591,953 621,651 621,651 - 237,253
Fund Balance - Ending 567,424 744,600 731,825 (12,775) 621,651
2023
Red Sky Ranch Metropolitan District
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Governmental Funds - Special Revenue Fund - Sales Tax
For the Year Ended December 31, 2023
(With Comparative Actual Amounts For the Year Ended 2022)
The accompanying notes are an integral part of these financial statements.
C6
NOTES TO THE FINANCIAL STATEMENTS
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
D1
I.Summary of Significant Accounting Policies
Red Sky Ranch Metropolitan District (the “District”) was organized on December 29,2000,
contemporaneously with the Holland Creek Metropolitan District (“HCMD”),as a quasi-municipal
corporation and political subdivision of the State of Colorado. The District was formed primarily to
finance construction, operation, and maintenance of the basic public infrastructure and public
services to be initially furnished by HCMD in an area of approximately 780 acres of land near
Wolcott, Colorado, and eventually furnished by the District.
The District’s financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America. The Governmental Accounting Standards
Board (“GASB”) is responsible for establishing accounting principles generally accepted in the
United States of America for state and local governments through its pronouncements
(Statements and Interpretations). The more significant accounting policies established by
accounting principles generally accepted in the United States of America used by the District are
discussed below.
A.Reporting Entity
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.
B.Government-wide and Fund Financial Statements
The District’s basic financial statements include both government-wide (reporting the
District as a whole) and fund financial statements (reporting the District’s major funds).
Both the government-wide and fund financial statements categorize primary activities as
governmental type.
1.Government-wide Financial Statements
In the government-wide Statement of Net Position, all balances are reported on a
full accrual, economic resource basis, which recognizes all long-term assets and
receivables as well as long-term debt and obligations.
The government-wide focus is on the sustainability of the District as an entity and
the change in the District’s net position resulting from the current year’s activities.
As a general rule, the effect of interfund activity has been eliminated from the
government-wide financial statements.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D2
I.Summary of Significant Accounting Policies (continued)
B.Government-wide and Fund Financial Statements (continued)
2.Fund Financial Statements
The financial transactions of the District are reported in individual funds in the
fund financial statements. Each fund is accounted for by providing a separate set
of self-balancing accounts that comprises its assets, liabilities, reserves, fund
equity, revenues and expenditures/expenses. The fund focus is on current
available resources and budget compliance.
The District reports the following governmental funds:
The General Fund is the District’s primary operating fund. It accounts for all
financial resources of the District, except those required to be accounted for in
another fund.
The Special Revenue Fund accounts for the resources accumulated for the
financing, construction, operations and maintenance of streets, transportation,
landscaping, and safety protection.
The Debt Service Fund accounts for the resources accumulated and payments
made for multiple fiscal year obligations and principal and interest on long-term
general obligation debt of the governmental funds.
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Measurement focus refers to whether financial statements measure changes in current
resources only (current financial focus) or changes in both current and long-term
resources (long-term economic focus). Basis of accounting refers to the point at which
revenues, expenditures, or expenses are recognized in the accounts and reported in the
financial statements. Financial statement presentation refers to classification of revenues
by source and expenses by function.
1.Long-term Economic Focus and Accrual Basis
Governmental activities in the government-wide financial statements use the
long-term economic focus and are presented on the accrual basis of accounting.
Revenues are recognized when earned and expenses are recognized when
incurred, regardless of the timing of the related cash flows.
2.Current Financial Focus and Modified Accrual Basis
The governmental fund financial statements use the current financial focus and
are presented on the modified accrual basis of accounting. Under the modified
accrual basis of accounting, revenues are recorded when susceptible to accrual;
i.e., both measurable and available. “Available” means collectible within the
current period or soon enough thereafter (60 days)to be used to pay liabilities of
the current period. Expenditures are generally recognized when the related
liability is incurred. The exception to this general rule is that principal and interest
on general long-term debt, if any, is recognized when due.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D3
I.Summary of Significant Accounting Policies (continued)
C.Measurement Focus, Basis of Accounting, and Financial
Statement Presentation (continued)
3.Financial Statement Presentation
Amounts reported as program revenues include capital grants and contributions,
including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues
include all taxes and interest income.
D.Financial Statement Accounts
1.Cash, Cash Equivalents and Investments
Cash and cash equivalents are defined as deposits that can be withdrawn at any
time without notice or penalty and investments with maturities of three months or
less.
Investments are stated at fair value. The change in fair value of investments is
recognized as an increase or decrease to investment assets and investment
income.
The District follows Colorado statutes specifying specific investment instruments
meeting defined rating criteria in which local governments may invest, which
include:
Obligations of the United States and certain U.S. government agency
securities
Certain international agency securities
General obligation and revenue bonds of U.S. local government entities
Banker's acceptances of certain banks
Commercial paper
Written repurchase agreements collateralized by certain authorized
securities
Certain money market mutual funds
Guaranteed investment contract
Local government investment pools
2.Receivable from Vail Resorts Development District
The balance represents cumulative costs incurred by the District which are to be
reimbursed through contributions and capital improvement fees from VRDC.
3.Receivables
Receivables are reported net of an allowance for uncollectible accounts. No
allowance is recorded at December 31, 2023, as all accounts are considered to
be collectible.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D4
I.Summary of Significant Accounting Policies (continued)
D.Financial Statement Accounts (continued)
4.Property Taxes
Property taxes are assessed in one year as a lien on the property, but not
collected by governmental units until the subsequent year. In accordance with
accounting principles generally accepted in the United States of America, the
assessed but uncollected property taxes have been recorded as a receivable and
as deferred inflow of resources.
5.Long-term Capital and Service Obligations to HCMD
The District Facilities Construction and Service Agreement (Note VI.) states the
District may reimburse HCMD over time for the cost of the infrastructure
constructed (capital obligation) as well as the operations and maintenance of
such infrastructure (service obligation) by HCMD.These items represent the
portions of the obligations that have not yet been paid by the District as of
December 31, 2023.
6.Long-term Debt
In the government-wide financial statements, long-term debt is reported as a
liability. Bond discounts are deferred and amortized over the life of the bonds
using the bonds outstanding method. Bonds payable are reported net of the
applicable bond discount.
7.Interfund Transactions
Quasi-external transactions are accounted for as revenues, expenditures or
expenses.Transactions that constitute reimbursements to a fund for
expenditures or expenses initially made from it that are properly applicable to
another fund, are recorded as expenditures or expenses in the reimbursing fund
and as reductions of expenditures or expenses in the fund that is reimbursed. All
other interfund transactions, except quasi-external transactions and
reimbursements, are reported as transfers.
8.Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net 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 (expense/ expenditure) until then. The District doesn’t have
any items that qualify for reporting in this category at December 31, 2023.
In addition to liabilities, the statement of net 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 so will not be recognized as an
inflow of resources (revenue) until that time. The District has only one type of
item that qualifies for reporting in this category. Accordingly, the item, unavailable
property tax revenue, is deferred and recognized as an inflow of resources in the
period that the amounts become available and earned.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D5
I.Summary of Significant Accounting Policies (continued)
D.Financial Statement Accounts (continued)
9.Fund Balance
The District classifies governmental fund balances as follows:
Non-spendable -includes fund balance amounts that cannot be spent either
because it is not in spendable form or because of legal or contractual
requirements.
Restricted –includes fund balance amounts that are constrained for specific
purposes which are externally imposed by providers, such as creditors or
amounts constrained due to constitutional provisions or enabling legislation.
Committed –includes fund balance amounts that are constrained for specific
purposes that are internally imposed by the government through formal action of
the highest level of decision making authority which is the Board of Directors.
Assigned –includes spendable fund balance amounts that are intended to be
used for specific purposes that are neither considered restricted or committed.
Fund balance may be assigned by the Board of Directors or its management
designee.
Unassigned -includes residual positive fund balance within the General Fund
which has not been classified within the other above mentioned categories.
Unassigned fund balance may also include negative balances for any
governmental fund if expenditures exceed amounts restricted, committed, or
assigned for those specific purposes.
The District uses restricted amounts first when both restricted and unrestricted
fund balance is available unless there are legal documents/contracts that prohibit
doing this, such as in grant agreements requiring dollar for dollar spending.
Additionally, the District first uses committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance when expenditures are made.
The District does not have a formal minimum fund balance policy. However, the
District’s budget includes a calculation of targeted reserve positions and
management reports the targeted amounts annually to Board of Directors.
E.Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires the District’s management to make
estimates and assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial statements, and
the reported amount of revenues and expenditures or expenses during the reporting
period. Actual results could differ from those estimates.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D6
II.Reconciliation of Government-wide and Fund Financial Statements
A.Explanation of certain differences between the governmental fund Balance Sheet
and the government-wide Statement of Net Position
The governmental fund Balance Sheet includes a reconciliation between fund balance –
governmental funds and net position of governmental activities as reported in the
government-wide Statement of Net Position.
One element of that reconciliation explains, “Long-term liabilities are not due and payable
in the current period and, therefore, are not reported in the funds.” The details of this
negative $8,457,403 difference are as follows:
Bonds pay able 8,485,000
Les s: Issuanc e discount (59,941)
Accrued interes t payable 32,344
Net adjus tment to reduc e government al activities net pos it ion 8,457,403
B.Explanation of certain differences between the governmental fund Statement of
Revenues, Expenditures and Changes in Fund Balances and the government-wide
Statement of Activities
The governmental fund Statement of Revenues, Expenditures and Changes in Fund
Balances includes reconciliation between net changes in fund balance –governmental
funds and changes in net position of governmental activities as reported in the
government-wide Statement of Activities.
One element of that reconciliation explains, “The repayment of the principal of long-term
debt consumes current financial resources of governmental funds. This transaction,
however, has no effect on the net position. Also, governmental funds report the effect of
issuance costs, 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.” The details of this $100,599 difference are as follows:
Principal repay ments - Bonds pay able 105,000
Less: Amortization of dis count on bonds payable (4,401)
Net adjus tment to increas e change in net pos ition 100,599
Another element of that reconciliation states, “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 governmental funds.” The adjustment of $50,031 is the
change in accrued interest of $306 and changes in long-term capital and service
obligations payable to HCMD of ($50,337).
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D7
III.Stewardship, Compliance and Accountability
A.Budgetary Information
In the fall of each year, the District's Board of Directors formally adopts a budget with
appropriations by fund for the ensuing year pursuant to the Local Government Budget
Law of Colorado. The budgets for the funds are adopted on a basis consistent with
accounting principles generally accepted in the United States of America.
As required by Colorado statutes, the District followed the following timetable in
approving and enacting a budget for 2023:
(1)For the 2023 budget year, prior to August 25, 2022, the County Assessor sent to
the District the certified assessed valuation of all taxable property within the
District’s boundaries and prior to December 10, 2022, the County Assessor sent
the final recertified assessed valuation to the District.
(2)On or before October 15, 2022, the District’s accountant submitted to the
District’s Board of Directors a recommended budget which detailed the
necessary property taxes needed along with other available revenues to meet
the District’s operating requirements.
(3)A public hearing on the proposed budget and capital program was held by the
Board no later than 45 days prior to the close of the fiscal year.
(4)For the 2023 budget, prior to December 15, 2022, the District computed and
certified to the County Commissioners a rate of levy that derived the necessary
property taxes as computed in the proposed budget.
(5)For the 2023 budget, the final budget and appropriating resolution was adopted
prior to December 31, 2022.
After adoption of the budget resolution, the District may make the following changes: a) it
may transfer appropriated monies between funds or between spending agencies within a
fund, as determined by the original appropriation level; b) it may approve supplemental
appropriations to the extent of revenues in excess of the estimated in the budget; c)it
may approve emergency appropriations; and d) it may reduce appropriations for which
originally estimated revenues are insufficient.
Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in
2022 were collected in 2023 and taxes certified in 2023 will be collected in 2024. Taxes
are due on January 1st in the year of collection; however, they may be paid in either one
installment (no later than April 30th) or two equal installments (not later than February 28th
and June 15th) without interest or penalty. Taxes which are not paid within the prescribed
time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts
and the accrued interest thereon become delinquent on June 15th.
The level of control in the budget at which expenditures exceed appropriations is at the
fund level. All appropriations lapse at year end.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D8
III.Stewardship, Compliance and Accountability (continued)
B.TABOR Amendment
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 that 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. Any revenues earned in excess of the fiscal year spending limit must be
refunded in the next fiscal year, unless voters approve retention of such excess revenue.
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.
TABOR also requires local governments to establish an emergency reserve to be used
for declared emergencies only.The reserve is calculated at 3% of fiscal year spending.
Fiscal year spending excludes bonded debt service and enterprise spending.The District
has reserved $8,022, which is the approximate required reserve, at December 31, 2023.
On November 7, 2000 the voters of the District authorized the issuance of up to
$34,456,582 in general obligation debt, $19,154,087 in debt related to operations and
maintenance and $36,382,378 in debt related to contractual obligations, and approved an
increase in the property tax revenue to pay such debt and obligations. Colorado statutes
limit the issuance of general obligation debt to twenty years following the date of the
election unless the issuance is approved at a subsequent election, except nothing shall
limit the ability to issue refunding bonds in accordance with statutory requirements.As
such, without additional electoral authorization under TABOR, the District is currently
unable to issue additional general obligation debt except for refunding bonds.
Related to the contractual obligation portion of authorization the District has entered into
the District Facilities Construction and Services agreement with HCMD which is further
described in Note VI on page D13.
As of November 7, 2000, all debt and tax increases constitute voter-approved revenue
changes and are to be collected and spent by the District without regard to any spending,
revenue-raising, or other limitation contained within Article X, Section 20 of the Colorado
Constitution and without limiting in any year the amount of other revenues that may be
collected and spent by the District.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D9
III.Stewardship, Compliance and Accountability (continued)
B.TABOR Amendment (continued)
In 2000,the District authorized general obligation debt for the following purposes:
Ba llot Item Da te
Re maining
Author iz ation
Ballot Is sue C 11/7/2000 Street Im provem ents $1,564,853
Ballot Is sue D 11/7/2000 Tra ffi c and Safe ty C ontrols 200,000
Ballot Is sue E 11/7/2000 Pota ble and Non-Potable Wa te r Supply 4,429,292
Ballot Is sue F 11/7/2000 Parks a nd Recreational Fa ci lities 400,000
Ballot Is sue G 11/7/2000 500,000
Ballot Is sue H 11/7/2000 Sanitary Sewage System 204,145
Ballot Is sue I 11/7/2000 Operations & Maintenance Fa ci lities & Im provements 19,154,087
Ballot Is sue J 11/7/2000 Refunding, Payi ng, or Defeas ing Bonds 10,968,291
To ta l $37,420,669
Fi re Prote cti on, Em ergency Medical & Ambulance
Service
Purpos e
Under C.R.S. 32-1-1101(2) voter authorization of debt expires twenty years after the date
of the election when voters authorized the debt. The District’s debt authorization expired
November, 2020, per statute.
On November 7, 2017, the District’s voters approved the following ballot question: “Shall
Red Sky Ranch Metropolitan District sales tax be increased $100,000 in the first full fiscal
year and by whatever additional amounts are raised annually thereafter by the imposition
pursuant to Section 31-2-1106, C.R.S. of a sales tax beginning as soon as January 1,
2018 at a rate not to exceed 5.5% (55 cents on each $10 taxable purchase), upon every
transaction in the District upon which the State imposes a sales tax, for the purposes of
financing, constructing, operating and maintaining streets, transportation, landscaping
and safety protection improvements; and shall the District be authorized to collect, retain
and spend the proceeds of such sales tax and investment income thereon as a voter-
approved revenue change in 2018 and in each year thereafter, under Article X, Section
20 of the Colorado Constitution and any other law without regard to any spending,
revenue-raising, or other limitation contained within Article X, Section 20 of the Colorado
Constitution or Section 29-1-301, C.R.S., and without limiting in any year the amount of
other revenues that may be collected and spent by the District?"
The District’s management believes it is in compliance with the financial provisions of
TABOR. However, TABOR is complex and subject to interpretation, and some of the
District’s contractual obligations may conflict with and violate TABOR if not construed in
accordance with TABOR’s limitations. Many of its provisions, including the interpretation
of how to calculate fiscal year spending limits, will require judicial interpretation.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D10
IV.Detailed Notes on all Funds
A.Deposits and Investments
The District’s deposits are entirely covered by federal depository insurance (“FDIC”) or by
collateral held under Colorado’s Public Deposit Protection Act (“PDPA”). The FDIC
insures the first $250,000 of the District’s deposits at each financial institution. Deposit
balances over $250,000 are collateralized as required by PDPA. The carrying amount of
the District’s demand deposits was $1,360,540 at year end.
The Investment Pool represents investments in COLOTRUST. The fair value of the pool
is determined by the pool’s share price. The District has no regulatory oversight for the
pool. At December 31, 2023, the District’s investments in COLOTRUST were 100% of
the District’s investment portfolio.
Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the District
has invested primarily in COLOTRUST. Funds in COLOTRUST can be withdrawn without
notice or penalty.
Credit Risk. The District’s investment policy limits investments to those authorized by
State statutes as listed in note I.D.1. The District’s general investment policy is to apply
the prudent-person rule: investments are made as a prudent person would be expected
to act, with discretion and intelligence, to seek reasonable income, preserve capital, and,
in general, avoid speculative investments.
Concentration of Credit Risk. The District diversifies its investments by security type and
institution. Financial institutions holding District funds must provide the District a copy of
the certificate from the Banking Authority that states that the institution is an eligible
public depository.
At December 31, 2023, the District had no unrealized gains or losses. The District had
the following cash and investments with the following maturities:
Standa rd Te rm to Ma turi ty
& Poor's Ca rryi ng Le ss tha n One to
Ra ti ng Am ounts one year fi ve years
Depos its:
Chec king Not rat ed 36,609 36,609 -
Inves tments:
In ve stment pool AAAm 1,323,931 1,323,931 -
1,360,540 1,360,540 -
The District had invested $1,323,931 in the Colorado Local Government Liquid Asset
Trust (the “Trust”). The Trust is 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, measured at net asset value,and each share is equal
in value to $1.00. Investments consist of U.S. Treasury bills, notes strips and repurchase
agreements collateralized by U.S. Treasury securities. A designated custodial bank
provides safekeeping and depository services in connection with the direct investment
and withdrawal functions. Substantially all securities owned are held by the Federal
Reserve Bank in the account maintained for the custodial bank.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D11
IV.Detailed Notes on all Funds (continued)
B.Interfund Transfers
During 2023, the General fund received a transfer of $52,371 from the Debt Service
Fund.
C.Long-term Debt
Series 2015 -The District issued $7,140,000 of general obligation bonds dated April 15,
2015 to refund the District’s 2003 bonds, and provide resources to be used to make a
payment to HCMD for assets constructed under the Facilities Construction and Service
Agreement discussed in Note VI. The bonds bear interest rates ranging from 3.875% to
5.000%, and are payable June 1 and December 1. The principal is payable on December
1 and matures in various increments beginning in 2020 through 2044. The portion of the
bonds maturing on and after December 1, 2024 are subject to redemption prior to
maturity at the option of the District at any time on and after December 1, 2024, at a
redemption price equal to their principal amount plus interest accrued thereon to the date
of redemption.
Series 2017 –The District issued a $1,780,000 general obligation senior note dated
January 31, 2017 to pay HCMD Actual Capital Costs in accordance with the Facilities
Construction and Service Agreement discussed in Note VI. The bonds bear a fixed
interest rate set at 3.20% and are payable June 1 and December 1. The principal is
payable on December 1 and matures in various increments beginning 2017 through
2036.
Annual debt service requirements to maturity for the general obligation bonds and senior
note are as follows:
Princi pa l Inte re st Tota l
2024 145,000 388,133 533,133
2025 150,000 383,020 533,020
2026 190,000 377,714 567,714
2027 200,000 370,531 570,531
2028 240,000 362,924 602,924
2028 - 2032 1,630,000 1,651,186 3,281,186
2033 - 2037 2,295,000 1,229,718 3,524,718
2038 - 2042 2,890,000 644,250 3,534,250
2043 - 2044 745,000 37,250 782,250
Total 8,485,000 5,444,726 13,929,726
The District had the following changes in debt for the year ended December 31, 2023:
Be ginning En ding Due Within
Ba lance Ad di ti ons Re ducti ons Ba la nce One Year
Bonds payabl e:
Series 2015 GO Bonds 7,070,000 - (45,000) 7,025,000 70,000
Series 2017 GO Bonds 1,520,000 - (60,000) 1,460,000 75,000
Les s: Deferred amounts
for issuance di scount s (64,342) - 4,401 (59,941) -
8,525,658 - (100,599) 8,425,059 145,000
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D12
V.Other Information
A.Risk Management
1.Colorado Special Districts Property and Liability Pool
Except as provided within the Colorado Governmental Immunity Act, the District
may be exposed to various risks of loss related to torts, thefts of, damage to, or
destruction of assets; errors or omissions; or injuries to employees.The District is
insured for such risks as a member of the Colorado Special Districts Property
and Liability Pool (“Pool”). The Pool is an organization created by
intergovernmental agreement to provide property and general liability, automobile
physical damage and liability, public officials liability and boiler and machinery
coverage to its members. The Pool provides coverage for property claims up to
the values declared and liability coverage for claims up to $1,000,000.Settled
claims have not exceeded this coverage in any of the past three fiscal years.
The District pays annual premiums to the Pool for liability, property and public
official’s 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.
A summary of audited statutory basis financial information for the Pool as of and
for the year ended December 31, 2022 (the latest audited information available)
is as follows:
Asse ts 69,212,177
Liabilities 45,329,704
Capital and surplus 23,882,473
Total 69,212,177
Revenue 27,064,468
Underwriting ex pens es 25,447,966
Underwriting gain 1,616,502
Ot her inc ome 462,530
Net Incom e (Loss)2,079,032
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D13
V.Other Information (continued)
B.Related Party Transactions
As subsequently discussed in Note VI (Intergovernmental Agreements), the District
entered into improvement fee and pledge agreements with Vail Resorts Development
Company (“VRDC”). Under these agreements, the District imposes capital improvement
fees on VRDC when and if requested by HCMD. When collected, the fee revenue is
remitted in full to HCMD. During the year ended December 31, 2023, the District had
invoiced VRDC $325,989 for these fees. At December 31, 2023, $43,876 remained
receivable from VRDC and $43,876 remained payable to HCMD.
In accordance with the District Facilities Construction and Service Agreement discussed
in Note VI., the District levied, collected and remitted property taxes totaling $527,098 to
HCMD as payment for services provided by that district during 2023.
VI.Intergovernmental Agreements
A.District Facilities Construction and Service Agreement
On June 8, 2001 Red Sky Ranch Metropolitan District (the “District”) entered into a
District Facilities Construction and Service Agreement with HCMD. The Agreement
generally provides that the District will pay HCMD over a period of years, subject to the
District’s TABOR authorizations and Service Plan,the costs of (1) the construction,
acquisition, and equipping of certain public facilities and services (the “Facilities”), and (2)
the operation and maintenance of the Facilities. The Agreement states that the obligation
to pay the amounts required there under is a general obligation debt of the District
subject to certain limitations, and as such the question of whether the District should
enter into and perform the Agreement was submitted at an election called for such
purpose and held on November 7, 2000. The question was approved by the electorate
and read as follows:
Shall Red Sky Ranch Metropolitan District debt be increased $36,382,378, with a
repayment cost of not more than $167,358,938; and shall Red Sky Ranch
Metropolitan District taxes be increased $40,748,263, annually (such tax
increase to be collected in such amount not withstanding any property tax cut
specified by Article X, Section 20 of the Colorado constitution, as it currently
exists or as amended), or by such lesser annual amount as may be necessary to
provide for the payment of such District debt; such debt to consist of a contract
with one or more other political subdivisions of the State, which contract will
constitute a multiple fiscal year financial obligation and which will obligate the
District to pay the costs of acquiring, constructing, or otherwise providing, and the
costs of operating and maintaining, certain water, street, traffic safety, television
relay and translation, transportation, park and recreation, mosquito and pest
control and sanitation facilities and improvements, all as may be provided in such
contract; such contract to be pay able in not more than 30 years after incurrence;
such taxes to consist of an ad valorem mill levy imposed without limitation of rate
and in amounts sufficient to produce the annual increase set forth above or such
lesser amount as may be necessary, or to be imposed with such limitations as
may be determined by the District to be used solely for the purpose of paying the
financial obligations incurred pursuant to the contract; and shall any proceeds of
such contract and the proceeds of such taxes, and investment income thereon,
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D14
VI.Intergovernmental Agreements (continued)
A.District Facilities Construction and Service Agreement (continued)
constitute voter approved revenue changes and be collected and spent by the
District without regard to any expenditure, revenue-raising, or other limitation
contained within Article X, Section 20 of the Colorado constitution or any other
statutory or constitutional expenditure or revenue raising limitation?
On May 3, 2010, the parties entered into the First Amendment to District Facilities and
Service Agreement to clarify definitions and descriptions regarding improvements and
responsibilities of the parties and to replace the outdated long range plan.
Under the Agreement, the District covenants to levy the taxes necessary, together with
other available funds, to meet the payment obligations set forth in the Agreement.
In return for the payment of the monies required to be paid under the Agreement, HCMD
agrees to (1) acquire, construct and equip the Facilities, (2) thereafter provide for their
operation and maintenance, and (3) utilizing the Facilities, provide or have others provide
to the property within, and the inhabitants of both districts, all related services (the
“Services”), including but not limited to water and sanitation services, street maintenance,
television services, parks and recreation services and mosquito control services, as well
as certain administrative services.
As set forth in the Agreement, though the total obligation of the District represented by
the Agreement will be treated for financial disclosure purposes as a $36,382,378 multiple
fiscal year obligation, the actual obligations to provide for the construction, acquisition
and equipping of the Facilities, and for the provision of the above mentioned services, are
classified as two separate obligations and each is contingent and limited to the extent
that the District is able to meet its obligations through certain limited means.
In the case of the Facilities except as provided below, in any given year the District is
obligated to fund its construction and acquisition only to the extent it would be capable of
funding it through the issuance of general obligation debt in an aggregate principal
amount not to exceed the greater of $2 million or 50%of the assessed value of the
taxable property lying within the boundaries of the District as they may, from time to time,
be enlarged. Such general obligation debt limitation is subject to automatic increase if
applicable Colorado law increases the amount by which such debt may be issued. The
District has the option in any year to pay for the construction, acquisition and equipping
costs of the Facilities on an annual basis pursuant to the provisions of the Agreement.
Additionally, pursuant to an amendment of the agreement adopted on May 3, 2010 the
District is obligated to use its best efforts to issue bonds or other indebtedness at the
earliest practicable date to pay for the construction,acquisition and equipping costs of the
Facilities. The District did not certify a capital expenditure levy for collection in 2023 to
fund a portion of construction costs of HCMD, and therefore did not collect or remit any
property tax revenue to HCMD for the capital obligation.
Similarly, in the case of the Services, in any given year the District is obligated to fund its
costs only to the extent it is capable of funding through tax revenues resulting from the
certification by the District against the assessed value of the taxable property lying within
its boundaries, as such boundaries may from time to time be enlarged, to 49 mills. The
District certified a levy of 30.916 mills for collection in 2023 and remitted $527,098 to fund
operations of HCMD.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D15
VI.Intergovernmental Agreements (continued)
A.District Facilities Construction and Service Agreement (continued)
The District and HCMD are currently seeking declaratory judgements regarding the
interpretation and enforceability of the District Facilities Construction and Service
Agreement and its Amendment in Broomfield County, Colorado District County Case No.
2022CV030131.
To the extent that in any year the District does not fund its obligations under the
Agreement, the amounts not funded are carried forward as obligations in future years
under the Agreement. In addition, HCMD may supplement the revenues from the District
by imposing fees against the properties and inhabitants of the District for the services
HCMD provides.
The Agreement may be terminated by either district upon one year’s notice, provided that
the District may terminate the agreement only if, prior to the time of termination, all
remaining payments and financial obligations set forth in the Agreement are paid to
HCMD in full and upon the retirement of all outstanding debt of HCMD. HCMD may
terminate the Agreement only if, in the context of the termination, HCMD either 1)
transfers to the District, free and clear and in its entirety, its interest in the Facilities and in
each and every one and all of the water rights, contracts, leases, easements, properties
held in fee, and any other personal, real or intangible property then held or owned by
HCMD and necessary for the continued provision of the Services, 2) makes the transfer
to another governmental entity or entities pursuant to such terms and conditions for the
continued provision of the Facilities and Services as may be satisfactory to the Board of
Directors of the District or, 3) in the event HCMD is dissolving in accordance with
Colorado law, makes the transfer pursuant to such terms and conditions for the continued
provision of the Facilities and Services as may be held in accordance with that law by an
appropriate Colorado Court.
In the fall of each year, HCMD approves a budget and then submits to the District’s
Board for review and approval. If the District fails to adopt the HCMD approved budget in
any given year, a budget is purportedly automatically adopted under the District Facilities
Construction and Service Agreement but outside of the procedures required by the Local
Government Budget Law of Colorado.
VII.Other Agreements
A.Improvement Fee Agreement and Pledge Agreement
On June 8, 2001, the District entered into an Improvement Fee and Reimbursement
Agreement and a Pledge Agreement with VRDC. Pursuant to the Improvement Fee
Agreement, in consideration of significant capital improvements to be provided by HCMD
in the area of the District with a portion of the proceeds of the Series 2001 bonds issued
by HCMD and in order to maintain in the District mill levies and other charges at levels
required under the Facilities Agreement, VRDC has agreed to make certain limited
payments (“Capital Improvement Fees”) to the District.
Red Sky Ranch Metropolitan District
Notes to the Financial Statements
December 31, 2023
(Continued)
D16
VII.Other Agreements (continued)
A.Improvement Fee Agreement and Pledge Agreement (continued)
The amount of Capital Improvement Fees payable by VRDC under this agreement may
not exceed $10,000,000. Through December 31, 2023, the District has collected and
remitted $5,151,242 of Capital Improvement Fees. The District is required under the
Improvement Fee Agreement to submit each request received from HCMD for payment
of the Capital Improvement Fees directly to VRDC promptly upon receipt of such request.
In addition, pursuant to the Pledge Agreement, the District has pledged, conveyed and
assigned to HCMD all Capital Improvement Fees received by it or due to be paid to it
under the Improvement Fee Agreement in order to effectuate the Improvement Fee
Agreement. Material failure of the District to abide by the terms and conditions of the
covenants and agreements of the District Facilities Construction and Service Agreement
with HCMD or failure to issue bonds as required by such agreement will cause all capital
improvement fees paid to become repayable by the District to Vail Resorts Development
Company without interest. The District has executed a contingent note with Vail in the
amount of $5,151,242 to reflect this obligation.
B.Plath Property Inclusion Agreement
The District entered into a property inclusion agreement on August 31, 2001, with several
individuals in the Plath family who owned property adjacent to the boundaries of the
District.Pursuant to this agreement, the Plath family agreed to fund, design and construct
public improvements on the Plath property and convey the improvements to the District.
The District approved inclusion of the Plath property into the boundaries of the District
and the improvements were constructed by the Plath family.However, the improvements
were conveyed to Holland Creek Metropolitan District, which accepted the improvements
at a cost of $564,623. The agreement provides that the Plath family is entitled to
reimbursement of the cost amount upon the assessed value of the Plath property
reaching an assessed value of $2,600,000.The assessed value of the Plath property
following the County Assessor’s 2023 property reassessment was $2,785,915.
The District is not authorized to issue the debt contemplated in the Plath Property
Inclusion Agreement for several reasons, and the District is investigating the validity and
enforceability of the agreement.The District is also awaiting input from Holland Creek
Metropolitan District. Accordingly, no obligation to the Plath family has been recognized
by the District at this time.
SUPPLEMENTARY INFORMATION
2022
Final
Budget
Variance
Original Final Positive
Budget Budget Actual (Negative)Actual
Revenues:
Property taxes 707,833 707,833 707,838 5 1,039,204
Specific ownership taxes 35,392 35,392 40,632 5,240 56,268
VRDC capital improvement fees 398,600 398,600 325,989 (72,611) 176,600
Interest 18,592 36,628 35,281 (1,347) 20,176
Total Revenues 1,160,417 1,178,453 1,109,740 (68,713) 1,292,248
Expenditures:
Intergovernmental agreement:
Capital improvement fees to HCMD 398,600 398,600 325,989 72,611 176,600
Service obligation fees to HCMD 527,099 527,099 527,098 1 544,543
General government:
Agent fees 550 550 550 - 550
Treasurer fees 21,235 21,235 21,262 (27) 31,251
Debt service:
Bond principal 105,000 105,000 105,000 - 100,000
Bond interest 392,471 392,471 392,472 (1) 395,968
Total Expenditures 1,444,955 1,444,955 1,372,371 72,584 1,248,912
Excess (Deficiency) of Revenues
over Expenditures (284,538) (266,502) (262,631) (141,297) 43,336
Other Financing Sources (Uses):
Transfers out 288,406 276,089 264,917 (11,172) (38,635)
Total Other Financing (Uses)288,406 276,089 264,917 (11,172) (38,635)
Net Change in Fund Balance 3,868 9,587 2,286 (7,301) 4,701
Fund Balance - Beginning 619,768 618,152 618,152 - 613,451
Fund Balance - Ending 623,636 627,739 620,438 (7,301) 618,152
2023
Red Sky Ranch Metropolitan District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Governmental Funds - Debt Service Fund
For the Year Ended December 31, 2023
(With Comparative Actual Amounts For the Year Ended 2022)
E1
Calendar Prior Year All Percent
Year Assessed Valuation Funds Property Taxes Collected
Ended For Current Year Mills Total All Funds to
December 31 Property Tax Levy Levied Levied Collected Levied
2002 2,474,850 45.00 111,368 111,368 100%
2003 9,745,200 45.00 438,534 438,534 100%
2004 15,337,140 45.00 690,171 690,171 100%
2005 17,536,900 45.00 789,161 789,161 100%
2006 19,939,320 45.00 897,269 897,269 100%
2007 20,721,640 45.00 932,474 932,474 100%
2008 25,220,950 45.00 1,134,943 1,133,146 100%
2009 25,807,622 45.00 1,161,343 1,158,396 100%
2010 24,394,850 45.00 1,097,768 1,032,631 94%
2011 22,764,500 45.00 1,024,403 1,023,750 100%
2012 13,128,370 65.00 853,344 838,075 98%
2013 13,354,150 65.00 868,020 868,019 100%
2014 13,321,980 69.00 919,217 919,216 100%
2015 13,502,930 69.00 931,702 931,701 100%
2016 17,905,590 64.00 1,145,958 1,144,096 100%
2017 17,844,290 64.00 1,142,035 1,136,292 99%
2018 17,407,120 64.00 1,114,056 1,100,641 99%
2019 17,687,330 64.00 1,131,989 1,139,835 101%
2020 16,894,140 59.00 996,754 981,721 98%
2021 16,662,620 59.00 983,095 986,690 100%
2022 17,674,560 59.00 1,042,799 1,039,204 100%
2023 17,049,390 41.52 707,840 707,838 100%
2024 27,516,300 37.74 1,038,548 0%
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.
Red Sky Ranch Metropolitan District
History of Assessed Valuation, Mill Levy
and Property Taxes Collected
December 31, 2023
E2
Bonds
and Interest
Maturing in
the Calendar Interest Due Principal Interest Due Principal
Year Ending June 1 and Due June 1 and Due
December 31 December 1 December 1 December 1 December 1
2024 341,413 70,000 46,720 75,000
2025 338,700 75,000 44,320 75,000
2026 335,794 105,000 41,920 85,000
2027 331,331 115,000 39,200 85,000
2028 326,444 145,000 36,480 95,000
2029 320,281 155,000 33,440 100,000
2030 313,500 190,000 30,240 110,000
2031 305,188 200,000 26,720 115,000
2032 295,688 245,000 23,040 125,000
2033 284,050 255,000 19,040 135,000
2034 271,938 305,000 14,720 145,000
2035 257,450 320,000 10,080 150,000
2036 242,250 370,000 5,280 165,000
2037 223,750 390,000 --
2038 204,250 450,000 --
2039 181,750 475,000 --
2040 158,000 540,000 --
2041 131,000 565,000 --
2042 102,750 640,000 --
2043 70,750 670,000 --
2044 37,249 745,000 --
Totals 5,073,526 7,025,000 371,200 1,460,000
Interest Rate 3.875% - 5%
$7,140,000
Series 2015
Red Sky Ranch Metropolitan District
Schedule of Bonds Payable to Maturity
December 31, 2023
Dated April 15, 2015
General Obligation Refunding
$1,780,000
General Obligation
Series 2017
Dated January 31, 2017
Interest Rate 3.2%
E3
