Fossil Ridge Metropolitan Districts Nos. 1-3 2019 Budget
The proposed 2019 budgets for Fossil Ridge Metropolitan Districts #1, #2, and #3 are available for inspection by the public at the offices of CRS of Colorado, 7995 E. Prentice Avenue, #103E, Greenwood Village, CO 80111 between the hours of 8:00 A.M. and 5:00 P.M. Monday through Friday. A public hearing on said budget will be held at the regular District Meeting to be held on December 4, 2018 at 6:30 PM.
Fossil Ridge Metropolitan Districts NOS. 1-3 Board Meeting
CLICK HERE for the Fossil Ridge Metropolitan Districts NOS. 1-3 Board Meeting Agenda. Please note the Board meeting opens at 5:30pm with an Executive Session, public comment begins at 6:30pm on Monday October 15, 2018.
FRMD Declines to Immediately Issue Bonds Requested by Brookfield
In response to Brookfield’s request to immediately issue an additional approximately 37 million in subordinate and sub-subordinate bonds (typically those bonds with a lower rating, higher interest rates, and largest potential impact on future bond ratings) the Boards for Fossil Ridge Metropolitan District Nos. 1-3 (Districts) contracted with the financial firm Ehlers to obtain advice on municipal finance matters related to proposed bond issues and to assist the Boards in evaluating the Districts’ bonding capacity.
Based on Ehlers’ analysis, as documented in its September 7, 2018 Fossil Ridge Projected Cash Flow Memorandum, at their September 14, 2018 special meeting the Boards collectively concluded that it would be financially imprudent for the Districts to issue the subordinate and sub-subordinate debt requested by Brookfield. At the September 14 special meeting, the Boards unanimously passed the following motion accepting the findings and recommendations set forth in the Memorandum from Ehlers:
[Motion] that the Boards for Districts 1, 2 and 3 accept the September 7, 2018 Fossil Ridge Projected Cash Flow Memorandum from Ehlers, and that the Districts not issue subordinate and sub-subordinate debt, based on the following findings and recommendations set forth in that memorandum:
We conclude that it would be financially imprudent for the Districts to issue subordinate and sub-subordinate debt. Issuance of the subordinate and sub-subordinate debt will negatively impact the Districts given the current appreciation rate of the Districts, the needs of the Districts to undertake deferred maintenance on the Districts’ assets, the need for future funds to be available for the Districts’ assets and the need for continued maintenance of those assets.
Our conclusion is based on, in part, the following reasons:
- We do not believe the issuance of subordinate and sub-subordinate debt has a reasonable expectation that the debt will be repaid.
- The issuance of subordinate and sub-subordinate debt is financially imprudent based on the current growth assumptions of the Districts.
- The financial projection of Brookfield’s financial advisor, D.A. Davidson, relies on a 6% biennial increase in assessment values in all Districts, which has not been historically achieved, and likely will not be achieved for a significant period.
- Additional funds should be set aside to meet the ongoing and future maintenance of the District’s assets.
- The District’s outstanding 2010, 2014 and 2016 Bonds are callable in 2020. This may allow for reduction of interest costs which would improve the District’s cash flow and allow for additional repayment of developer advances. However, the issuance of subordinate and sub-subordinate debt may impact the District’s ability to undertake a refunding.
- The issuance of subordinate and sub-subordinate debt may negatively impact the District’s ability to obtain an investment grade bond rating.
NOTE: This decision does not mean that we will not have to issue bonds in the future to settle the debt with Brookfield, but the intent is to do it in accordance with the Service Plan.
PLEASE CLICK HERE TO VIEW THE EHLERS FINANCE CAPACITY MEMO
Dear Solterra Neighbor:
It is that time of year when the landscape and maintenance people prepare for the fall. These activities include native grass cutting, re-seeding, plant and tree replacement and watering schedule adjustments. The process has started this week. You will note truck traffic on the paths as well as altered watering schedules with the goal of establishing the native seeding as well as watering new trees and shrubs for winter survival. If the hot weather continues, areas may be watered more than once per day to establish the seeds and plants. PLEASE DO NOT TOUCH OR ADJUST THE WATER VALVES. Leave that to the maintenance personnel. Your cooperation and understanding is appreciated.
Fossil Ridge Metro District 1, 2 & 3 Board of Directors
Did You Know?...
The location and number of filings in our community- Click Here
The construction of community like Solterra involves separating the effort into projects known as filings, which are registered with the city. As the work on a filing is satisfactorily completed, the FRMD accepts the filing from the developer and assumes responsibility for it. In community meetings, these areas are frequently only referred by their filing number.
In an effort to better familiarize community members with the location and number of each filing, the attached map provides information residents may find useful.
The Judges' unofficial 2018 Director Election Results are in!
Click Here to view!
Please note that the results are unofficial and subject to change based on the results of the Canvass Board Meeting and the receipt of UOCAVA (Uniform and Overseas Absentee Voter Act) ballots. The Canvass Boards are scheduled to meet on Thursday, May 17th and the official election results will be posted on the website shortly thereafter.
For past Announcements, please Click here
(link to the District / communications page)