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File #: RES 2020-089    Version: 1 Name:
Type: Resolution Status: Passed
File created: 8/17/2020 In control: Town Council
On agenda: 9/15/2020 Final action: 9/15/2020
Title: Resolution Finding Demonstration of Reasonable Diligence on the Consolidated Application of Castle Pines Commercial Metropolitan District Nos. 1 & 4 for Quinquennial Review Pursuant to the Special District Act
Attachments: 1. Staff Report, 2. Attachment A: Resolution, 3. Attachment B: Boundary Map, 4. Presentation

To:                     Honorable Mayor and Members of Town Council

 

From:                     David L. Corliss, Town Manager

                     Michael J. Hyman, Town Attorney

                     Trish Muller, CPA, Finance Director

 

 

Title

Resolution Finding Demonstration of Reasonable Diligence on the Consolidated Application of Castle Pines Commercial Metropolitan District Nos. 1 & 4 for Quinquennial Review Pursuant to the Special District Act

Body

________________________________________________________________________________

 

Executive Summary

 

This report has been prepared from the standpoint of attempting to answer the issues identified in the Colorado Revised Statutes, Title 32 Special District Provisions, Financial Powers C.R.S. §32-1-1101.5(2)(a) which statements include “…to consider whether the service plan and financial plan of the district are adequate to meet the debt financing requirements of the authorized and unissued general obligation debt based upon present conditions within the district”; and C.R.S. §32-1-1101.5(2)(a )(I) “[d]etermine that the implementation of the service plan or financial plan will result in the timely and reasonable discharge of the special district’s general obligation debt”; and C.R.S. §32-1-1101.5(2)(a)(II) “will not result in the timely and reasonable discharge of the special district’s general obligation debt…”; and in Section 11.02.210 of the Castle Rock Municipal Code (“CRMC”).

 

The quinquennial review will be addressed in three sections:

                     Background - builds a framework of what the approved service plan committed the district to perform

                     Annual Report Review - reviews the annual report of the year ending 2018 and the performance of the district to date

                     Service Plan Review and Analysis - compares the service plan commitments and actual performance identifying any modifications and discrepancies with findings

 

Conclusion

 

Based on the analysis performed on the financial records for the Castle Pines Commercial Metropolitan District Nos. 1 & 4 (collectively, the “Districts”), as submitted to the Town by the Districts, it appears that they are operating in accordance with the parameters as defined in the Service Plan. Additionally, revenues generated by the Districts appear to be consistent with their financial projects and reasonable to meet the debt service requirements for the outstanding debt. The pending litigation with District 3 and the impact it may have on the Capital Pledge Agreement could impact this conclusion. Staff will continue to review the financial health of all metro districts on an annual basis and will inform Council accordingly.

 

NOTE: The information presented in this report was generated from a review of the Districts’ Quinquennial Reports; the Districts’ 2018, 2017, 2016 and 2015 Consolidated Annual Reports, which include Audited Financial Statements and Compiled Budgets for the Districts; the Amended Public Finance Agreement; and the Districts’ Service Plans. The Town’s review is based on the information presented in these documents, statements submitted by management, and a conservative projection of future market and revenue trends. Staff has not performed a full audit of the information. Accordingly, the statements and conclusions in this report represent the Town’s analysis of the information provided and do not predict future performance of the Districts.

 

Proposed Motion

 

I move to approve a Resolution Finding Demonstration of Reasonable Diligence on the Consolidated Application of Castle Pines Commercial Metropolitan District Nos. 1 & 4 for Quinquennial Review Pursuant to the Special District Act.

Attachments

 

Attachment A: Resolution

Attachment B: Boundary Map - Castle Pines Commercial Metropolitan District Nos. 1 & 4