Urban Renewal Authority of Dacono

Urban Renewal Authority of Dacono Meeting AGENDA Wednesday, November 2, 2022 6:00 PM Meeting location: New Annex Building, 512 Cherry Ave - Building C, Dacono, CO 80514 I. Roll Call II. Approval of the September 7, 2022 Urban Renewal Authority of Dacono Meeting Minutes. III. General Business A. *Receipt of Financial Statement periods ended September 30, 2022. Presenter: Thuy Dam - Outsourcing CFO, Clifton Larson Allen, LLP B. *2023 Budget Presentation Presenter: Thuy Dam - Outsourcing CFO, Clifton Larson Allen, LLP IV. Authority Member Reports V. Adjournment *Materials in Packets. Accommodations for the disabled can be made upon request.  Urban Renewal Authority of Dacono Meeting Minutes Wednesday, September 7, 2022 Meeting called to order at 6:01 PM Members Present Doris Crespo Chico Garcia Danny Long Adam Morehead Kevin Plain Jackie Thomas, Vice-Chair Kathryn Wittman Members Absent Charlie Everitt, excused Perry Buck, excused Jim Turnini, unexcused Staff Present AJ Euckert, City Manager Jennifer Krieger, Secretary/Executive Director Carolynne White, Attorney Valerie Taylor, Clerk to the Authority I. Approval of the July 6, 2022 Urban Renewal Authority of Dacono Meeting Minutes. Authority Member Morehead moved to approve the July 6, 2022 Urban Renewal Authority of Dacono Meeting Minutes as presented. The vote was unanimous with Vice-Chair Thomas declaring the motion carried. II. General Business A. *Election of Chair and Vice-Chair. Jennifer Krieger, Executive Director presented her report. Authority Member Plain moved to appoint Jackie Thomas as the Chair. The vote was unanimous. Authority Member Wittman moved to appoint Doris Crespo as the Vice-Chair. The vote was unanimous. B. *Consideration and approval URAD Resolution 22-06, accepting an appointment of a Commissioner to the Urban Renewal Authority of Dacono. Jennifer Krieger, Executive Director presented her report. Authority Member Wittman moved to approve URAD Resolution 22-06, accepting an appointment of a Commissioner to the Urban Renewal Authority of Dacono. The vote was unanimous with Chairperson Thomas declaring the motion carried. III. Authority Member Reports Jennifer stated the authority will not meet until November and will also have a meeting in December. Authority Member Morehead asked about the budget and how Council would approach the URAD about budget items. Jennifer said to email her any requests. Page 1 of 2  IV. Adjournment With no further business to be discussed, the meeting was adjourned at 6:11 PM Approved this 2nd day of Novmeber, 2022. _______________________________ Jackie Thomas, Chairperson Attest: ______________________________________ Jennifer Krieger, Secretary/Executive Director Page 2 of 2 URBAN RENEWAL AUTHORITY OF DACONO FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2022  URBAN RENEWAL AUTHORITY OF DACONO BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 Capital Capital Projects - Plan Projects - Plan General Debt Service Area I Area II Total ASSETS Cash - Checking $ 124,571 $ 5,259 $ 74,703 $ - $ 204,533 ICS Account 1,502,407 745,588 - - 2,247,995 Series 2020 Tax Incr Bond Fd - 6,590,058 - - 6,590,058 Series 2020 Tax Incr Proj Fd - - - 1,804,837 1,804,837 Receivable from County Treasurer 1,217 - - - 1,217 TOTAL ASSETS $ 1,628,195 $ 7,340,905 $ 74,703 $ 1,804,837 $ 10,848,640 LIABILITIES AND FUND BALANCES CURRENT LIABILITIES Accounts payable $ 4,353 $ - $ - $ - $ 4,353 Accounts payable - Plan Area II TIF - 2,383 - - 2,383 Due to City for staffing 41,600 - - - 41,600 Total Liabilities 45,953 2,383 - - 48,336 FUND BALANCES Total Fund Balances 1,582,242 7,338,522 74,703 1,804,837 10,800,304 TOTAL LIABILITIES AND FUND BALANCES $ 1,628,195 $ 7,340,905 $ 74,703 $ 1,804,837 $ 10,848,640 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances - governmental funds have been omitted. 1  URBAN RENEWAL AUTHORITY OF DACONO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 GENERAL FUND Annual Year to Date Budget Actual Variance REVENUES Incremental property taxes $ 932,739 $ 915,789 $ (16,950) Interest income - 502 502 Other revenue - 25 25 Royalties 35,000 43,417 8,417 TOTAL REVENUES 967,739 959,733 (8,006) EXPENDITURES Staffing 185,000 119,951 65,049 Professional Services 100,000 38,181 61,819 Accounting 50,000 24,170 25,830 Auditing 7,000 5,850 1,150 County Treasurer's fee 13,991 13,740 251 Legal services 60,000 9,510 50,490 Contingency 9,009 60 8,949 TOTAL EXPENDITURES 425,000 211,462 213,538 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 542,739 748,271 205,532 OTHER FINANCING SOURCES (USES) Transfers from other funds 76,295 76,295 - Transfers to other fund - Plan Area I (1,042,530) - 1,042,530 Transfers to other fund - Plan Area I (Mountain View Fire) (111,271) - 111,271 TOTAL OTHER FINANCING SOURCES (USES) (1,077,506) 76,295 1,153,801 NET CHANGE IN FUND BALANCES (534,767) 824,566 1,359,333 FUND BALANCES - BEGINNING 686,850 757,676 70,826 FUND BALANCES - ENDING $ 152,083 $ 1,582,242 $ 1,430,159 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 2 SUPPLEMENTARY INFORMATION  URBAN RENEWAL AUTHORITY OF DACONO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 DEBT SERVICE FUND Annual Year to Date Budget Actual Variance REVENUES Incremental property taxes $ 12,590,160 $ 12,590,424 $ 264 Interest income - 40,308 40,308 TOTAL REVENUES 12,590,160 12,630,732 40,572 EXPENDITURES Trustee fees 3,000 - 3,000 Property tax increment payment - AIMS Junior College 93,743 93,745 (2) Property tax increment payment - Northern Colorado Water 100,126 100,128 (2) Property tax increment payment - School Dist RE1J 2,871,405 2,871,466 (61) Property tax increment payment - School Dist RE8 112,915 112,918 (3) Property tax increment payment - St Vrain Sanitation 46,886 46,887 (1) Property tax increment payment - Weld County 812,360 812,377 (17) Property tax increment payment - Mountain View Fire 1,000,544 1,000,565 (21) County Treasurer's fee 188,852 188,856 (4) Bond interest 2,171,804 - 2,171,804 Bond principal 5,100,000 - 5,100,000 TOTAL EXPENDITURES 12,501,635 5,226,942 7,274,693 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 88,525 7,403,790 7,315,265 OTHER FINANCING SOURCES (USES) Transfers to other fund (76,295) (76,295) - TOTAL OTHER FINANCING SOURCES (USES) (76,295) (76,295) - NET CHANGE IN FUND BALANCES 12,230 7,327,495 7,315,265 FUND BALANCES - BEGINNING 10,874 11,027 153 FUND BALANCES - ENDING $ 23,104 $ 7,338,522 $ 7,315,418 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 4  URBAN RENEWAL AUTHORITY OF DACONO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 CAPITAL PROJECTS - PLAN AREA I FUND Annual Year to Date Budget Actual Variance REVENUES TOTAL REVENUES EXPENDITURES I-25 Corridor (market analysis) 100,000 - 100,000 URAD Property (site planning) 65,000 21,496 43,504 County Road 12 (design/survey) 100,000 - 100,000 County Road 12 (construction) 985,000 - 985,000 TOTAL EXPENDITURES 1,250,000 21,496 1,228,504 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,250,000) (21,496) 1,228,504 OTHER FINANCING SOURCES (USES) Transfers from other funds 1,153,801 - (1,153,801) TOTAL OTHER FINANCING SOURCES (USES) 1,153,801 - (1,153,801) NET CHANGE IN FUND BALANCES (96,199) (21,496) 74,703 FUND BALANCES - BEGINNING 96,199 96,199 - FUND BALANCES - ENDING $ - $ 74,703 $ 74,703 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances - governmental funds have been omitted. 5  URBAN RENEWAL AUTHORITY OF DACONO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 CAPITAL PROJECTS - PLAN AREA II FUND Annual Year to Date Budget Actual Variance REVENUES Interest income $ 500 $ 13,366 $ 12,866 TOTAL REVENUES 500 13,366 12,866 EXPENDITURES Capital outlay 1,791,976 - 1,791,976 TOTAL EXPENDITURES 1,791,976 - 1,791,976 NET CHANGE IN FUND BALANCES (1,791,476) 13,366 1,804,842 FUND BALANCES - BEGINNING 1,791,476 1,791,471 (5) FUND BALANCES - ENDING $ - $ 1,804,837 $ 1,804,837 No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances - governmental funds have been omitted. 6  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The Economic Development Authority of Dacono was formed by resolution passed March 23, 2015, by the City Council of the City of Dacono, Colorado (the City) pursuant to the Colorado Urban Renewal Law, Colorado Revised Statutes. On June 8, 2020, a resolution was passed to change the name of the organization to the Urban Renewal Authority of Dacono (Authority). The purpose of the Authority is to acquire and develop certain blighted areas in the City to maintain the public welfare. The Authority is considered a component unit of the City since the Authority’s tax increment financing indicates financial accountability with the City, due to the benefits redevelopment will provide the City. The Mayor appoints the Authority board members and the City Council reviews the Urban Renewal Plans and any changes thereto. Legal counsel is of the opinion that under state statues, the City is not liable with respect to the bonds issued by the Authority. The Authority has no employees and all administrative functions are contracted. The Authority prepares its budget on the modified accrual basis of accounting in accordance with the requirements of Colorado Revised Statutes C.R.S. 29-1-105 using its best estimates as of the date of the budget hearing. These estimates are based on expected conditions and its expected course of actions. The assumptions disclosed herein are those that the District believes are significant to the budget. There will usually be differences between the budget and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Revenues Incremental Property Taxes The Authority receives incremental property tax revenue for each of the active Urban Renewal areas. Incremental property tax revenues are the property tax revenues in excess of an amount equal to the ad valorem property taxes produced by the levy at the rates fixed for such year by or for the governing bodies of the various taxing jurisdictions within or overlapping the Urban Renewal area upon a valuation for assessment equal to the property tax base amount. The property tax base amount is certified by the County Assessor as the valuation for assessment of all taxable property within the Urban Renewal area last certified by the County Assessor prior to the adoption of the Urban Renewal plan. The base amount may be proportionately adjusted for general reassessments in accordance with Colorado law. The calculation of the incremental property taxes budgeted is displayed on the Property Summary Information pages the budget at the estimated mill levies for each project area. Interest Income Interest earned on the Authority’s available funds has been estimated based on the current average interest rate. No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 7  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures Administrative Expenditures Administrative expenditures include the services necessary to maintain the administrative viability such as legal, accounting, audit, contractual, and professional services, and other administrative expenses for the Authority. County Treasurer’s Fees County Treasurer’s collection fees have been computed at 1.5% of the incremental property taxes. Property Tax Increment Payment City Cooperation Agreement. On December 16, 2019, the Authority entered into a Cooperation Agreement (Dacono II Urban Renewal Plan) with the City (the “City Cooperation Agreement”). Pursuant to the City Cooperation Agreement, the parties agreed that, in furtherance of carrying out the purposes of the Plan, the Authority may retain and expend, 100% of the following revenue: (a) incremental property tax revenues derived from the City’s mill levy and transferred by the County Treasurer to the Authority for deposit into the Special Fund (the “City Property Tax Increment”) and (b) the incremental sales and use tax revenues from the portion of the City’s 3.0% general fund sales and use tax which are in excess of the sales tax base amount which revenues are deposited into the Special Fund by the City (the “City Sales Tax Increment” and together with the City Property Tax Increment, the “City Increment”). Under the City Cooperation Agreement, the Authority agreed to use the City Increment to pay eligible costs of the redevelopment of the TIF Area. The City Sales Tax Increment is not pledged to the Bonds and will be used by the Authority for other uses. The City presently imposes a debt service mill levy for the payment of general obligation indebtedness (2.62 of its 25.082 mills imposed in 2019, all of which will contribute to the Pledged Revenues) with a final maturity date of December 1, 2025. County Tax Increment Revenue Sharing Agreement. On December 16, 2019, the Authority entered into a Tax Increment Revenue Sharing Agreement with the County (the “County Sharing Agreement”). The parties agreed that the Authority may retain 50% of the net property tax increment revenues generated from the County’s mill levy during the TIF Period (the “County Increment”) and the Authority will remit to the County the remaining 50% of the net property tax increment revenues. St. Vrain Valley School District IGA. On December 16, 2019, the Authority and St. Vrain Valley School District RE-1J (the “St. Vrain School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and St. Vrain Valley School District (the “St. Vrain School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the St. Vrain School District’s mill levy (currently in the amount of 24.995 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “St. Vrain Total Program Mill Levy Increment”) and the Authority will remit to the St. Vrain School District all of the property tax increment revenues derived from the St. Vrain School District’s other mill levies and any future mill levies. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 8  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) Weld RE-8 School District IGA. On December 11, 2019, the Authority and Weld RE-8 School District (the “Weld School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and Weld RE-8 School District (the “Weld School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the Weld School District’s mill levy (currently in the amount of 12.143 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “Weld Total Program Mill Levy Increment”) and the Authority will remit to the Weld School District all of the property tax increment revenues derived from the Weld School District’s other mill levies and any future mill levies. Carbon Valley Parks and Recreation District IGA. On November 19, 2019, the Authority and Carbon Valley Parks and Recreation District (the “Parks and Recreation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Carbon Valley Parks and Recreation District) (Dacono II Urban Renewal Plan) (the “Parks and Recreation District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 100% of the property tax increment revenues generated from the Parks and Recreation District’s mill levy (the “Parks and Recreation District Increment”). The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the incremental property tax revenue received by the Authority to pay the administrative costs of the Authority. Mountain View Fire Rescue District IGA. On December 9, 2019, the Authority and Mountain View Fire Rescue District (the “Fire District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Mountain View Fire Rescue District) (Dacono II Urban Renewal Plan) (the “Fire District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 42% of the property tax increment revenues generated from the Fire District’s mill levy (the “Fire District Increment”), subject to a limit of $16,000,000 (the “Fire District Increment Cap”). If the Authority collections hit the Fire District Increment Cap prior to expiration of the TIF Period, then the Authority will not be entitled to retain the Fire District Increment and will remit it to the Fire District. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the property tax increment revenues received by the Authority to pay the administrative costs of the Authority. The Authority agreed to use the Fire District Increment solely for transportation infrastructure projects identified in the Plan. Given the restrictions on the use of the Fire District Increment in the Fire District IGA, the Fire District Increment is not pledged to the payment of the Bonds. High Plains Library District IGA. On December 16, 2019, the Authority entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (High Plains Library District) (Dacono II Urban Renewal Plan) with High Plains Library District (the “Library District”) (the “Library District IGA”). The parties agreed that the Authority will remit to the Library District all of the property tax increment revenues derived from the Library District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of such property tax increment revenues to pay the administrative costs of the Authority. No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 9  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) St. Vrain Sanitation District IGA. On November 20, 2019, the Authority and St. Vrain Sanitation District (as previously defined, the “Sanitation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (St. Vrain Sanitation District) (Dacono II Urban Renewal Plan) (the “Sanitation District IGA”). The parties agreed that the Authority will remit to the Sanitation District all of the property tax increment revenues derived from the Sanitation District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. Aims Junior College District IGA. On December 3, 2019, the Authority and Aims Junior College District (the “College District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Aims Junior College District) (Dacono II Urban Renewal Plan) (the “College District IGA”). The parties agreed that the Authority will remit to the College District all of the property tax increment revenues derived from the College District’s mill levy allocated to the Special Fund. Northern Colorado Water Conservancy District. On November 25, 2019, the Authority sent a letter to the Northern Colorado Water Conservancy District (the “Water District”) to notify the Water District that the Authority would remit to the Water District all of the property tax increment revenues derived from the Water District’s mill levy. Accordingly, the Authority did not enter into an intergovernmental agreement with the Water District governing the sharing of incremental property tax revenues. Debt and Leases City Loan Between 2016 and 2019, the City of Dacono General Fund loaned the Authority $877,677 to implement plan objectives. These objectives include eliminating and preventing the spread of blight within the Plan Area and to stimulate growth and investment within the Area boundaries. The funds were used for property acquisition and public improvements in the Plan Area. Currently, the Authority is to retain all of the TIF funds collected. In future years, the Authority anticipates TIF revenues to increase and the loan will be repaid at that time. Tax Increment Revenue Bonds, Series 2020 On October 28, 2020, the Authority issued $16,043,000 in Tax Increment Revenue Bonds, Series 2020. Proceeds from the bonds will be used to: (i) acquire certain water rights known as the Windy Gap Units for use in the TIF Area and elsewhere within the City, (ii) finance a portion of the costs of the design, construction, acquisition, and equipping of certain water and sewer infrastructure within the TIF Area and elsewhere within the City, and (iii) pay costs of issuing the bonds. The bonds bear interest rate of 6.250% per annum and are payable annually on December 1, beginning on December 1, 2020 from and to the extent of available pledged revenue. The bonds mature on December 1, 2039 an are subject to mandatory redemption on December 1 of each year to the extent No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 10  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases (Continued) Tax Increment Revenue Bonds, Series 2020 (Continued) of available pledged revenue. The bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Pledged revenue consists of pledged property tax revenues and any other legally available moneys, which the Authority determines, in its absolute discretion, to transfer to the Trustee for application as pledged revenue. Pledged property tax revenues are generally defined as that portion of the property tax increment revenues that is derived solely from property classified as oil and gas real property or oil and gas personal property as certified by the County Assessor in the TIF Area, net of any costs of collection of the City and/or County and any tax refunds or abatements authorized by or on behalf of the City and/or County. Property tax increment revenues generated from other taxable property in the TIF Area are not pledged to the payment of the bonds. To the extent principal of any bonds is not paid when due, such principal shall remain outstanding until the termination date of December 2, 2044 and shall continue to bear interest at the rate then borne by the bonds. To the extent interest on any bonds is not paid when due, such interest shall compound annually on each interest payment date at the rate then borne by the bonds. The bonds will be deemed discharged on the termination date. The District has no capital or operating leases. No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 11  URBAN RENEWAL AUTHORITY OF DACONO SCHEDULE OF CASH POSITION September 30, 2022 Updated October 27, 2022 Capital Projects Capital Projects General Debt Service Fund Fund Fund Fund Plan Area I Plan Area II Total TBK Bank - Checking Account Balance as of 9/30/22 $ 124,570.67 $ 5,259.05 $ 74,702.93 $ - $ 204,532.65 Subsequent activities: 10/10/22 Check #174-175 (44,685.44) - - - (44,685.44) Anticipated activities TIF Reimbursement - (2,383.39) - - (2,383.39) Anticipated Balance 79,885.23 2,875.66 74,702.93 - 157,463.82 TBK Bank - ICS Account 6249 Balance as of 9/30/22 $ 1,502,407.31 $ 745,587.93 $ - $ - $ 2,247,995.24 Subsequent activities: Anticipated activities Interfund transfer - - - - - Transfer to Bond Fund - (745,587.93) - - (745,587.93) Anticipated Balance 1,502,407.00 - - - 1,502,407.31 UMB Bank - Tax Incr Rev 2020 - Proj Fund Balance as of 9/30/22 - - - 1,804,836.93 1,804,836.93 Subsequent activities: Anticipated activities Anticipated Balance - - - 1,804,836.93 1,804,836.93 UMB Bank - Tax Incr Rev 2020 - Bond Fund Balance as of 9/30/22 - 6,590,058.12 - - 6,590,058.12 Subsequent activities: - Anticipated activities Transfer from ICS - 745,587.93 - - 745,587.93 Anticipated Balance - 7,335,646.05 - - 7,335,646.05 Total Anticipated Balances $ 1,582,292.23 $ 7,338,521.71 $ 74,702.93 $ 1,804,836.93 $ 10,800,354.11 Yield information as of 9/30/22 TBK - 0.20% UMB - 3.02% No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 12  URBAN RENEWAL AUTHORITY OF DACONO DACONO URA - PLAN AREA I TIF Revenue Reconciliation 2022 Current Year Prior Year Delinquent Net % of Total Property Total % of Total Property Property Taxes, Rebates Treasurer's Due to Amount Taxes Received Cash Taxes Received Taxes and Abatements Interest Fees County Received Monthly Y-T-D Received Monthly Y-T-D January $ 5,863.94 $ (198.52) $ - $ (87.95) $ - $ 5,577.47 0.61% 0.61% $ 4,341.92 0.54% 0.54% February 205,735.64 - - (3,085.98) - 202,649.66 22.06% 22.66% 104,980.87 13.15% 13.69% March 140,022.17 - - (2,100.27) - 137,921.90 15.01% 37.68% 90,536.88 11.34% 25.04% April 359,733.58 - - (5,395.96) - 354,337.62 38.57% 76.24% 433,689.40 54.33% 79.37% May 54,684.86 - - (820.32) - 53,864.54 5.86% 82.11% 47,789.70 5.99% 85.35% June 106,200.13 - - (1,592.97) - 104,607.16 11.39% 93.49% 96,407.99 12.08% 97.43% July 13,566.15 - - (203.50) - 13,362.65 1.45% 94.95% - -1.06% 96.36% August 28,945.98 - - (434.16) - 28,511.82 3.10% 98.05% - 0.00% 96.37% September 1,235.49 - - (18.54) - 1,216.95 0.13% 98.18% - 0.32% 96.69% October - 0.00% 98.18% 2,314.31 1.03% 97.72% November - 0.00% 98.18% - 0.00% 97.72% December - 0.00% 98.18% 198.52 0.02% 97.74% $ 915,987.94 $ (198.52) $ - $ (13,739.65) $ - $ 902,049.77 98.18% 98.18% $ 780,259.59 97.74% 97.74% Property Taxes % Collected to Taxes Levied % of Levied Collected Amount Levied Property Tax General Fund $ 932,739 100% $ 915,789 98.18% $ 932,739 100% $ 915,789 98.18% Treasurer's Fees General Fund $ 13,991 100% $ 13,740 98.20% $ 13,991 100% $ 13,740 98.20% No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 13  URBAN RENEWAL AUTHORITY OF DACONO DACONO URA - PLAN AREA II TIF Revenue Reconciliation 2022 Current Year Prior Year Delinquent Net % of Total Property Total % of Total Property Property Taxes, Rebates Treasurer's Due to Amount Taxes Received Cash Taxes Received Taxes and Abatements Interest Fees County Received Monthly Y-T-D Received Monthly Y-T-D January $ - $ - $ - $ - $ - $ - 0.00% 0.00% $ - 0.00% 0.00% February 1,519.06 - - (22.78) - 1,496.28 0.01% 0.01% - 0.00% 0.00% March - - - - - - 0.00% 0.01% 1,143.51 6.17% 6.17% April 12,581,429.32 - - (188,721.40) - 12,392,707.92 99.93% 99.94% 14,263.82 77.00% 83.17% May - - - - - - 0.00% 99.94% - 0.00% 83.17% June 1,519.06 - - (22.78) - 1,496.28 0.01% 99.95% 104.42 0.56% 83.73% July - - - - - - 0.00% 99.95% - 0.00% 83.73% August - - - - - - 0.00% 99.95% - 0.00% 83.73% September 5,956.21 - - (89.30) - 5,866.91 0.05% 100.00% 2,631.40 14.20% 97.94% October - 0.00% 100.00% - 0.00% 97.94% November - 0.00% 100.00% - 0.00% 97.94% December - 0.00% 100.00% - 0.00% 97.94% $ 12,590,423.65 $ - $ - $ (188,856.26) $ - $ 12,401,567.39 100.00% 100.00% $ 18,143.15 97.94% 97.94% Property Taxes % Collected to Taxes Levied % of Levied Collected Amount Levied Property Tax Debt Service $ 12,590,160 100% $ 12,590,424 100.00% $ 12,590,160 100% $ 12,590,424 100.00% Treasurer's Fees Debt Service $ 188,852 100% $ 188,856 100.00% $ 188,852 100% $ 188,856 100.00% No assurance is provided on these financial statements. Substantially all required disclosures, the government-wide financial statements, and the statement of revenues, expenditures and changes in fund balances – governmental funds have been omitted. 14  Meeting Date: November 2, 2022 Subject: Draft Budget for the Urban Renewal Authority of Dacono Fiscal Year 2023. Presenter: Thuy Dam, Outsourcing CFO State and Local Government, Clifton Larson Allen, LLP Jennifer Krieger, Executive Director Background: The draft budget for the Urban Renewal Authority of Dacono for Fiscal Year 2023 reflects expected revenues and expenditures for Dacono Plan Area I and Dacono Plan Area II for the Urban Renewal Authority of Dacono. Incremental property tax revenue is the primary funding sources for the URAD. Proposed 2023 projects, funded from the Dacono I Urban Renewal Plan Area I include: • Roadway design engineering and construction for a portion of Weld County Road 12 (Grand View Blvd). Incremental revenue generated from the Dacono Plan Area II is pledged revenue for debt service payment of the Authority Tax Increment Revenue Bonds, Series 2020. The public hearing for adopting the FY 2023 is scheduled for Wednesday, December 7, 2022. URBAN RENEWAL AUTHORITY OF DACONO ANNUAL BUDGET FOR THE YEAR ENDING DECEMBER 31, 2023 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO SUMMARY 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ 2,327,813 $ 2,585,399 $ 2,656,373 $ 2,656,373 $ 3,379,886 REVENUES Incremental property taxes - Plan Area I 792,141 932,739 915,789 932,540 1,002,359 Incremental property taxes - Plan Area II 18,419 12,590,160 12,590,424 12,590,424 27,427,960 Interest income 695 500 54,176 81,000 92,000 Royalties 44,135 35,000 43,417 45,000 45,000 Other Revenue - - 25 25 - Transfer from City 3,303 - - - - Total revenues 858,693 13,558,399 13,603,831 13,648,989 28,567,319 TRANSFERS IN 194,597 1,230,096 76,295 187,566 1,925,833 Total funds available 3,381,103 17,373,894 16,336,499 16,492,928 33,873,038 EXPENDITURES General Accounting 32,680 50,000 24,170 45,000 52,000 Auditing 5,750 7,000 5,850 5,850 7,000 County Treasurer's fee 12,156 202,843 202,596 202,844 426,454 Legal services 9,696 60,000 9,510 25,000 50,000 Professional services - 100,000 38,181 100,000 250,000 Staffing 133,057 185,000 119,951 173,832 209,000 Contingency 701 9,009 60 60 8,965 Property tax increment payments 7,308 5,037,979 5,038,086 5,038,086 11,001,353 Debt Service Trustee fees 3,000 3,000 - 3,000 3,000 Bond principal - 5,100,000 - 5,133,000 10,910,000 Bond interest - 2,171,804 - 2,171,804 681,875 Capital Projects Capital outlay - Plan Area I 98,285 1,250,000 21,496 27,000 1,938,000 Capital outlay - Plan Area II 227,500 1,791,976 - - 1,831,471 Total expenditures 530,133 15,968,611 5,459,900 12,925,476 27,369,118 TRANSFERS OUT 194,597 1,230,096 76,295 187,566 1,925,833 Total expenditures and transfers out requiring appropriation 724,730 17,198,707 5,536,195 13,113,042 29,294,951 ENDING FUND BALANCES $ 2,656,373 $ 175,187 $ 10,800,304 $ 3,379,886 $ 4,578,087 No assurance provided. See summary of significant assumptions. 1 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO PROPERTY TAX SUMMARY INFORMATION PLAN AREA I 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 ASSESSED VALUATION - WELD COUNTY TIF Increment $ 5,921,051 $ 6,866,308 $ 6,866,308 $ 6,866,308 $ 7,361,614 Total TIF Certified Assessed Value $ 5,921,051 $ 6,866,308 $ 6,866,308 $ 6,866,308 $ 7,361,614 MILL LEVY General Fund 136.872 135.843 135.843 135.843 136.160 Total mill levy 136.872 135.843 135.843 135.843 136.160 PROPERTY TAXES General Fund $ 810,424 $ 932,739 $ 932,739 $ 932,739 $ 1,002,359 Levied property taxes 810,424 932,739 932,739 932,739 1,002,359 Refund and abatements (8,566) - (199) (199) - Adjustments to actual/rounding (9,717) - (16,751) - - Budgeted property taxes $ 792,141 $ 932,739 $ 915,789 $ 932,540 $ 1,002,359 BUDGETED PROPERTY TAXES General Fund $ 792,141 $ 932,739 $ 915,789 $ 932,540 $ 1,002,359 $ 792,141 $ 932,739 $ 915,789 $ 932,540 $ 1,002,359 No assurance provided. See summary of significant assumptions. 2 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO PROPERTY TAX SUMMARY INFORMATION PLAN AREA II 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 ASSESSED VALUATION - WELD COUNTY TIF Increment $ 159,460 $ 109,686,180 $ 109,686,180 $ 109,686,180 $ 237,367,900 Total TIF Certified Assessed Value $ 159,460 $ 109,686,180 $ 109,686,180 $ 109,686,180 $ 237,367,900 MILL LEVY Debt Service 115.509 114.783 114.783 114.783 115.550 Total mill levy 115.509 114.783 114.783 114.783 115.550 PROPERTY TAXES Debt Service $ 18,419 $ 12,590,160 $ 12,590,160 $ 12,590,160 $ 27,427,960 Adjustments to actual/rounding - - 264 264 - Levied property taxes 18,419 12,590,160 12,590,424 12,590,424 27,427,960 Budgeted property taxes $ 18,419 $ 12,590,160 $ 12,590,424 $ 12,590,424 $ 27,427,960 BUDGETED PROPERTY TAXES Debt Service $ 18,419 $ 12,590,160 $ 12,590,424 $ 12,590,424 $ 27,427,960 $ 18,419 $ 12,590,160 $ 12,590,424 $ 12,590,424 $ 27,427,960 No assurance provided. See summary of significant assumptions. 3 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO GENERAL FUND 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ 309,537 $ 686,850 $ 757,676 $ 757,676 $ 1,337,535 REVENUES Incremental property taxes - Plan Area I 792,141 932,739 915,789 932,540 1,002,359 Other Revenue - - 25 25 - Royalties 44,135 35,000 43,417 45,000 45,000 Interest income - - 502 1,000 2,000 Total revenues 836,276 967,739 959,733 978,565 1,049,359 TRANSFERS IN Debt Service Fund - administration fees 113 76,295 76,295 76,295 168,303 Total transfers in 113 76,295 76,295 76,295 168,303 Total funds available 1,145,926 1,730,884 1,793,704 1,812,536 2,555,197 EXPENDITURES Accounting 32,680 50,000 24,170 45,000 52,000 Auditing 5,750 7,000 5,850 5,850 7,000 County treasurer's fee 11,882 13,991 13,740 13,988 15,035 Legal services 9,696 60,000 9,510 25,000 50,000 Professional Services - 100,000 38,181 100,000 250,000 Staffing 133,057 185,000 119,951 173,832 209,000 Contingency 701 9,009 60 60 8,965 Total expenditures 193,766 425,000 211,462 363,730 592,000 TRANSFERS OUT Capital Projects Fund - Plan Area I 98,285 1,042,530 - - 1,639,720 Capital Projects Fund - Plan Area I (Mountain View Fire) 96,199 111,271 - 111,271 117,810 Total transfers out 194,484 1,153,801 - 111,271 1,757,530 Total expenditures and transfers out requiring appropriation 388,250 1,578,801 211,462 475,001 2,349,530 ENDING FUND BALANCES $ 757,676 $ 152,083 $ 1,582,242 $ 1,337,535 $ 205,667 No assurance provided. See summary of significant assumptions. 4 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO DEBT SERVICE FUND 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ - $ 10,874 $ 11,027 $ 11,027 $ 50,410 REVENUES Incremental property taxes - Plan Area II 18,419 12,590,160 12,590,424 12,590,424 27,427,960 Transfer from City 3,303 - - - - Interest income - - 40,308 60,000 70,000 Total revenues 21,722 12,590,160 12,630,732 12,650,424 27,497,960 Total funds available 21,722 12,601,034 12,641,759 12,661,451 27,548,370 EXPENDITURES Trustee fees 3,000 3,000 - 3,000 3,000 County Treasurer's fee 274 188,852 188,856 188,856 411,419 Property tax increment payment - AIMS Junior College 90 93,743 93,745 93,745 167,827 Property tax increment payment - School Dist RE1J 4,326 2,871,405 2,871,466 2,871,466 6,384,020 Property tax increment payment - School Dist RE8 91 112,915 112,918 112,918 202,149 Property tax increment payment - St Vrain Sanitation 70 46,886 46,887 46,887 103,370 Property tax increment payment - Weld County 1,157 812,360 812,377 812,377 1,757,998 Property tax increment payment - Mountain View Fire 1,425 1,000,544 1,000,565 1,000,565 2,165,240 Property tax increment payment - Northern Colorado Water 149 100,126 100,128 100,128 220,749 Bond principal - 5,100,000 - 5,133,000 10,910,000 Bond interest - 2,171,804 - 2,171,804 681,875 Total expenditures 10,582 12,501,635 5,226,942 12,534,746 23,007,647 TRANSFERS OUT General Fund - Administation fees 113 76,295 76,295 76,295 168,303 Total transfers out 113 76,295 76,295 76,295 168,303 Total expenditures and transfers out requiring appropriation 10,695 12,577,930 5,303,237 12,611,041 23,175,950 ENDING FUND BALANCES $ 11,027 $ 23,104 $ 7,338,522 $ 50,410 $ 4,372,420 No assurance provided. See summary of significant assumptions. 5 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO CAPITAL PROJECTS FUND - PLAN AREA I 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ - $ 96,199 $ 96,199 $ 96,199 $ 180,470 REVENUES Total revenues - - - - - TRANSFERS IN General Fund 194,484 1,153,801 - 111,271 1,757,530 Total transfers in 194,484 1,153,801 - 111,271 1,757,530 Total funds available 194,484 1,250,000 96,199 207,470 1,938,000 EXPENDITURES I-25 Corridor (market analysis) 84,840 100,000 - 2,000 98,000 URAD Property (site planning) 13,445 65,000 21,496 25,000 40,000 County Road 12 (design/survey) - 100,000 - - 200,000 County Road 12 (construction) - 985,000 - - 1,600,000 Total expenditures 98,285 1,250,000 21,496 27,000 1,938,000 Total expenditures and transfers out requiring appropriation 98,285 1,250,000 21,496 27,000 1,938,000 ENDING FUND BALANCES $ 96,199 $ - $ 74,703 $ 180,470 $ - No assurance provided. See summary of significant assumptions. 6 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO CAPITAL PROJECTS FUND - PLAN AREA II 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ 2,018,276 $ 1,791,476 $ 1,791,471 $ 1,791,471 $ 1,811,471 REVENUES Interest income 695 500 13,366 20,000 20,000 Total revenues 695 500 13,366 20,000 20,000 Total funds available 2,018,971 1,791,976 1,804,837 1,811,471 1,831,471 EXPENDITURES Capital outlay 227,500 1,791,976 - - 1,831,471 Total expenditures 227,500 1,791,976 - - 1,831,471 Total expenditures and transfers out requiring appropriation 227,500 1,791,976 - - 1,831,471 ENDING FUND BALANCES $ 1,791,471 $ - $ 1,804,837 $ 1,811,471 $ - No assurance provided. See summary of significant assumptions. 7 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The Economic Development Authority of Dacono was formed by resolution passed March 23, 2015, by the City Council of the City of Dacono, Colorado (the City) pursuant to the Colorado Urban Renewal Law, Colorado Revised Statutes. On June 8, 2020, a resolution was passed to change the name of the organization to the Urban Renewal Authority of Dacono (Authority). The purpose of the Authority is to acquire and develop certain blighted areas in the City to maintain the public welfare. The Authority is considered a component unit of the City since the Authority’s tax increment financing indicates financial accountability with the City, due to the benefits redevelopment will provide the City. The Mayor appoints the Authority board members and the City Council reviews the Urban Renewal Plans and any changes thereto. Legal counsel is of the opinion that under state statues, the City is not liable with respect to the bonds issued by the Authority. The Authority has no employees and all administrative functions are contracted. The Authority prepares its budget on the modified accrual basis of accounting in accordance with the requirements of Colorado Revised Statutes C.R.S. 29-1-105 using its best estimates as of the date of the budget hearing. These estimates are based on expected conditions and its expected course of actions. The assumptions disclosed herein are those that the District believes are significant to the budget. There will usually be differences between the budget and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Revenues Incremental Property Taxes The Authority receives incremental property tax revenue for each of the active Urban Renewal areas. Incremental property tax revenues are the property tax revenues in excess of an amount equal to the ad valorem property taxes produced by the levy at the rates fixed for such year by or for the governing bodies of the various taxing jurisdictions within or overlapping the Urban Renewal area upon a valuation for assessment equal to the property tax base amount. The property tax base amount is certified by the County Assessor as the valuation for assessment of all taxable property within the Urban Renewal area last certified by the County Assessor prior to the adoption of the Urban Renewal plan. The base amount may be proportionately adjusted for general reassessments in accordance with Colorado law. The calculation of the incremental property taxes budgeted is displayed on the Property Summary Information pages the budget at the estimated mill levies for each project area. Interest Income Interest earned on the Authority’s available funds has been estimated based on the current average interest rate. 8 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures Administrative Expenditures Administrative expenditures include the services necessary to maintain the administrative viability such as legal, accounting, audit, contractual, and professional services, and other administrative expenses for the Authority. County Treasurer’s Fees County Treasurer’s collection fees have been computed at 1.5% of the incremental property taxes. Property Tax Increment Payment City Cooperation Agreement. On December 16, 2019, the Authority entered into a Cooperation Agreement (Dacono II Urban Renewal Plan) with the City (the “City Cooperation Agreement”). Pursuant to the City Cooperation Agreement, the parties agreed that, in furtherance of carrying out the purposes of the Plan, the Authority may retain and expend, 100% of the following revenue: (a) incremental property tax revenues derived from the City’s mill levy and transferred by the County Treasurer to the Authority for deposit into the Special Fund (the “City Property Tax Increment”) and (b) the incremental sales and use tax revenues from the portion of the City’s 3.0% general fund sales and use tax which are in excess of the sales tax base amount which revenues are deposited into the Special Fund by the City (the “City Sales Tax Increment” and together with the City Property Tax Increment, the “City Increment”). Under the City Cooperation Agreement, the Authority agreed to use the City Increment to pay eligible costs of the redevelopment of the TIF Area. The City Sales Tax Increment is not pledged to the Bonds and will be used by the Authority for other uses. The City presently imposes a debt service mill levy for the payment of general obligation indebtedness (2.62 of its 25.082 mills imposed in 2019, all of which will contribute to the Pledged Revenues) with a final maturity date of December 1, 2025. County Tax Increment Revenue Sharing Agreement. On December 16, 2019, the Authority entered into a Tax Increment Revenue Sharing Agreement with the County (the “County Sharing Agreement”). The parties agreed that the Authority may retain 50% of the net property tax increment revenues generated from the County’s mill levy during the TIF Period (the “County Increment”) and the Authority will remit to the County the remaining 50% of the net property tax increment revenues. St. Vrain Valley School District IGA. On December 16, 2019, the Authority and St. Vrain Valley School District RE-1J (the “St. Vrain School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and St. Vrain Valley School District (the “St. Vrain School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the St. Vrain School District’s mill levy (currently in the amount of 24.995 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “St. Vrain Total Program Mill Levy Increment”) and the Authority will remit to the St. Vrain School District all of the property tax increment revenues derived from the St. Vrain School District’s other mill levies and any future mill levies. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. 9 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) Weld RE-8 School District IGA. On December 11, 2019, the Authority and Weld RE-8 School District (the “Weld School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and Weld RE-8 School District (the “Weld School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the Weld School District’s mill levy (currently in the amount of 12.143 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “Weld Total Program Mill Levy Increment”) and the Authority will remit to the Weld School District all of the property tax increment revenues derived from the Weld School District’s other mill levies and any future mill levies. Carbon Valley Parks and Recreation District IGA. On November 19, 2019, the Authority and Carbon Valley Parks and Recreation District (the “Parks and Recreation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Carbon Valley Parks and Recreation District) (Dacono II Urban Renewal Plan) (the “Parks and Recreation District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 100% of the property tax increment revenues generated from the Parks and Recreation District’s mill levy (the “Parks and Recreation District Increment”). The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the incremental property tax revenue received by the Authority to pay the administrative costs of the Authority. Mountain View Fire Rescue District IGA. On December 9, 2019, the Authority and Mountain View Fire Rescue District (the “Fire District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Mountain View Fire Rescue District) (Dacono II Urban Renewal Plan) (the “Fire District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 42% of the property tax increment revenues generated from the Fire District’s mill levy (the “Fire District Increment”), subject to a limit of $16,000,000 (the “Fire District Increment Cap”). If the Authority collections hit the Fire District Increment Cap prior to expiration of the TIF Period, then the Authority will not be entitled to retain the Fire District Increment and will remit it to the Fire District. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the property tax increment revenues received by the Authority to pay the administrative costs of the Authority. The Authority agreed to use the Fire District Increment solely for transportation infrastructure projects identified in the Plan. Given the restrictions on the use of the Fire District Increment in the Fire District IGA, the Fire District Increment is not pledged to the payment of the Bonds. High Plains Library District IGA. On December 16, 2019, the Authority entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (High Plains Library District) (Dacono II Urban Renewal Plan) with High Plains Library District (the “Library District”) (the “Library District IGA”). The parties agreed that the Authority will remit to the Library District all of the property tax increment revenues derived from the Library District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of such property tax increment revenues to pay the administrative costs of the Authority. 10 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) St. Vrain Sanitation District IGA. On November 20, 2019, the Authority and St. Vrain Sanitation District (as previously defined, the “Sanitation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (St. Vrain Sanitation District) (Dacono II Urban Renewal Plan) (the “Sanitation District IGA”). The parties agreed that the Authority will remit to the Sanitation District all of the property tax increment revenues derived from the Sanitation District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. Aims Junior College District IGA. On December 3, 2019, the Authority and Aims Junior College District (the “College District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Aims Junior College District) (Dacono II Urban Renewal Plan) (the “College District IGA”). The parties agreed that the Authority will remit to the College District all of the property tax increment revenues derived from the College District’s mill levy allocated to the Special Fund. Northern Colorado Water Conservancy District. On November 25, 2019, the Authority sent a letter to the Northern Colorado Water Conservancy District (the “Water District”) to notify the Water District that the Authority would remit to the Water District all of the property tax increment revenues derived from the Water District’s mill levy. Accordingly, the Authority did not enter into an intergovernmental agreement with the Water District governing the sharing of incremental property tax revenues. Debt and Leases City Loan Between 2016 and 2019, the City of Dacono General Fund loaned the Authority $877,677 to implement plan objectives. These objectives include eliminating and preventing the spread of blight within the Plan Area and to stimulate growth and investment within the Area boundaries. The funds were used for property acquisition and public improvements in the Plan Area. Currently, the Authority is to retain all of the TIF funds collected. In future years, the Authority anticipates TIF revenues to increase and the loan will be repaid at that time. Tax Increment Revenue Bonds, Series 2020 On October 28, 2020, the Authority issued $16,043,000 in Tax Increment Revenue Bonds, Series 2020. Proceeds from the bonds will be used to: (i) acquire certain water rights known as the Windy Gap Units for use in the TIF Area and elsewhere within the City, (ii) finance a portion of the costs of the design, construction, acquisition, and equipping of certain water and sewer infrastructure within the TIF Area and elsewhere within the City, and (iii) pay costs of issuing the bonds. 11 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases (Continued) Tax Increment Revenue Bonds, Series 2020 (Continued) The bonds bear interest rate of 6.250% per annum and are payable annually on December 1, beginning on December 1, 2020 from and to the extent of available pledged revenue. The bonds mature on December 1, 2039 an are subject to mandatory redemption on December 1 of each year to the extent of available pledged revenue. The bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Pledged revenue consists of pledged property tax revenues and any other legally available moneys, which the Authority determines, in its absolute discretion, to transfer to the Trustee for application as pledged revenue. Pledged property tax revenues are generally defined as that portion of the property tax increment revenues that is derived solely from property classified as oil and gas real property or oil and gas personal property as certified by the County Assessor in the TIF Area, net of any costs of collection of the City and/or County and any tax refunds or abatements authorized by or on behalf of the City and/or County. Property tax increment revenues generated from other taxable property in the TIF Area are not pledged to the payment of the bonds. To the extent principal of any bonds is not paid when due, such principal shall remain outstanding until the termination date of December 2, 2044 and shall continue to bear interest at the rate then borne by the bonds. To the extent interest on any bonds is not paid when due, such interest shall compound annually on each interest payment date at the rate then borne by the bonds. The bonds will be deemed discharged on the termination date. The District has no capital or operating leases. This information is an integral part of the accompanying budget. 12 DRAFT - SUBJECT TO REVISION  TIF Cty Treasurer's Net Retained by URAD Remit to % Retained Taxing Entity Revenue Fees (1.5%) Amount DSF Rev 1% Admin Tax Entity by URAD AIMS Junior College $ 170,383 $ (2,556) $ 167,827 $ - $ - $ 167,827 0% Carbon Valley Rec 1,050,070 (15,751) 1,034,319 1,023,976 10,343 - 100% Dacono Town 5,845,897 (87,688) 5,758,209 5,758,209 - - 100% Mountain View Fire 3,856,516 (57,848) 3,798,668 1,595,441 37,987 2,165,240 43% Northern Colorado Water 224,111 (3,362) 220,749 - - 220,749 0% School Dist RE1J 12,073,983 (181,110) 11,892,873 5,389,924 118,929 6,384,020 46% School Dist RE8 531,458 (7,972) 523,486 321,337 - 202,149 61% St Vrain Sanitation 106,004 (1,590) 104,414 - 1,044 103,370 1% Weld County 3,569,538 (53,543) 3,515,995 1,757,998 - 1,757,998 50% $ 27,427,960 $ 15,846,884 $ 168,303 $ 11,001,353 Notes AIMS Junior College URAD retains 0% Carbon Valley Rec URAD retains 100%: 1% Admin fee and 99% pledged for debt service Dacono Town URAD retains 100% for debt service pledge Mountain View Fire URAD retains 43%: 1% Admin fee and 42% pledged for debt service Northern Colorado Water URAD retains 0% School Dist RE1J URAD retains Program Mill Levy of 25.995 (of current total mill levy of 57.358) for debt service pledge and 1% Admin fee School Dist RE8 URAD retains Program Mill Levy of 12.143 (of current total mill levy of 19.782) for debt service pledge St Vrain Sanitation URAD retains 1% Admin fee Weld County URAD retains 50% for debt service pledge