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
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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