Arrowhead Colorado Metropolitan District

Arrowhead Colorado Metropolitan District

2024 ANNUAL REPORT  

(For Activities Completed in 2024, and With Information About Prospective Years)

As required by Section 32-1-207(3)(c), C.R.S. and Section XII of the District’s Service Plan, the following report of the activities of Arrowhead Colorado Metropolitan District (the “District”) from January 1, 2024 to December 31, 2024 is hereby submitted.

        I.              District Description - General Information

                              a.       Board members, officers’ titles, and terms

                                        1)      Marcus Pachner, President – Term expires May, 2027

                                        2)      Cary Clark, Secretary – Term expires May, 2027

                                       3)      Stephen Chiles, Treasurer/Secretary – Term expires May, 2025

                                       4)      Matthew Cecere, Assistant Secretary – Term expires May, 2025

                                       5)      Gary Worthley, Assistant Secretary – Term expires May, 2027

                            b.      Changes in board membership in past year:  None.

                            c.       Name and address for official District contacts: 

                                      Megan Becher, Esq.

                                      McGeady Becher Cortese Williams P.C.

                                      450 E. 17th Ave., Suite 400

                                      Denver, CO  80203-1254

                                      Phone: 303-592-4380

                                      Fax: 303-592-4385

                                     E-mail:  mbecher@specialdistrictlaw.com

                            d.      Elections held in the past year and their purpose: The District held its organizational election on November 5, 2024.

                            e.       Access Information to obtain a copy of rules and regulation adopted by the Board:  Any rules or regulations adopted by the District may be from the District, c/o: McGeady Becher Cortese Williams P.C., 450 E. 17th Ave., Suite 400, Denver, CO  80203-1254; Phone: 303-592-4380.

   II.                   Boundary changes for the report year and proposed changes for the coming year: There were no boundary changes during 2024, and no boundary changes are anticipated in 2025.

  III.                  List of intergovernmental agreements (existing or proposed) and a brief description of each detailing the financial and service arrangements. None.

                         a.       Contracts for operations, debt, and other contractual obligations with sub- districts or operating and taxing districts: None.

                        b.      Reimbursement agreements with developers and/or builders for advances to fund capital costs and administrative/operational and maintenance costs of the District:

                                  1)      “Operation Funding Agreement,” dated 12/13/2024 and effective 11/25/2024, with Arrowhead Colorado PropCo, LLC (“Arrowhead PropCo”), whereby Arrowhead PropCo shall advance funds for the operation of the District through 2025 up to a maximum amount of $100,000.  Advances incur interest at a rate of eight percent (8%) per annum.  The agreement terminates on December 31, 2065, unless extended or terminated earlier by the parties.

                                  2)      “Facilities Funding and Acquisition Agreement,” dated 12/13/2024 and effective 11/25/2024, with Arrowhead PropCo, whereby Arrowhead PropCo shall advance funds to the District for capital improvements through fiscal year 2025 up to a maximum amount of $100,000.  Advances incur interest at a rate of eight percent (8%) per annum. The agreement terminates on December 31, 2065, unless extended or terminated earlier by the parties.

IV.              Service Plan

                   a.       List and description of services authorized in Service Plan: Storm sewer, sanitation and wastewater treatment, street improvements, traffic safety protection, parks and recreation, and covenant enforcement and design review, all as more particularly described in the Service Plan.

                    b.      List and description of facilities authorized in Service Plan: Water, storm sewer, sanitation and wastewater treatment, street improvements, traffic safety protection, parks and recreation, and covenant enforcement and design review, all as more particularly described in the Service Plan.

                    c.       List and description of any extraterritorial services, facilities, and agreements: None.

V.               Development Progress:

                    a.       Indicate the estimated year of build-out, as set forth in the Service Plan: If commercial development occurs, the estimated year of build-out is 2026.  If residential development occurs, the estimated year of build-out is 2027.

                    b.      List the services provided with the date service began compared to the date authorized by the Service Plan: No services are currently provided.

                    c.       List changes made to the Service Plan, including when the change was authorized, when it was implemented or is expected to be implemented: None.

                    d.      List facilities to be acquired or constructed or leased back as set forth in the Service Plan and compare the date of completion or operation with the date authorized by the Service Plan: N/A

                    e.       List facilities not completed.  Indicate the reason for incompletion and provide a revised schedule, if any: N/A

                     f.        List facilities currently under construction with the percentage completed and an anticipated date of completion: No facilities are currently under construction.

                    g.      Indicate the population of the District for the previous five (5) years and provide population projections for the next five (5) years: Population was zero for the previous five years.  As of year-end 2024, the population was zero.  At build-out, the population is anticipated to be approximately 115 customers, if developed for commercial use and 93 residents (assuming 31 residential units and 3 persons per residence), if developed for residential use.

                    h.      List the planned number of housing units by type and the number of commercial and industrial properties with respective square footage and anticipated dates of completion/operation.  Compare the completed units and completed commercial and industrial properties to the amount planned in the Service Plan. If developed for residential use, it is anticipated the District will include approximately 31 residential units, with build-out expected to occur in 2027.  If developed for commercial use, it is anticipated the District will include approximately 30,500 square feet of commercial space, with build-out expected in 2026. No units have been completed to date.

                     i.        List any enterprises created by and/or operated by or on behalf of the District and summarize the purpose of each.  N/A

                    j.        Provide a summary of litigation involving public improvements owned by the District: None.

                    k.      Conveyances or dedications of facilities or improvements, constructed by the District to Douglas County: None.

VI.            Financial Plan and Financial Activities

                   a.       Provide a copy of the audit or exemption from the audit for the reporting year. A copy of the District’s 2024 Application for Exemption from Audit is attached hereto as Exhibit A.

                   b.      Provide a copy of the budget, showing the reporting and previous years.  A copy of the District’s 2025 Budget is attached hereto as Exhibit B.

                   c.       Show revenues and expenditures of the District for the previous five (5) years and provide projections for the next five (5) years.  Include any non-District or non-governmental financial support.  Include and list individually all fees, rates, tolls, etc., with a summary of the purpose of each.  Show other miscellaneous tax revenue, such as specific ownership taxes.  For the same period, show actual and projected mill levies by purpose (showing mill levies for each individual general obligation, revenue-based obligation, or contractual obligation).  The District was organized on November 25, 2024, therefore there is no information available for the previous 5 years.  For projections for the next five (5) years, see the Financial Plan of the District, included as Exhibit H of the Service Plan approved by and on file with the County.

                d.      List all debt that has been issued, including all individual issuances with a schedule of service until the debt is retired.  No debt has been issued by the District to date.

                 e.       List individually all authorized but unissued debt, including the purpose, ballot issue letter designation and election date, and amounts authorized and unissued.  See the Board of Canvassers’ Certificate of Election results for the November 5, 2024, organizational election, attached hereto as Exhibit C.  No debt has been issued by the District to date.

                  f.        List the total amount of debt issued and outstanding as of the date of the annual report and compare to the maximum authorized debt level as set forth in the Service Plan.  None.

                 g.      Enterprises of the District.  N/A

                           1)        Include revenues of the enterprise, showing both direct support from the District and all other sources. N/A.

                            2)       Include expenses of the enterprise, showing both direct payments to the District and all other obligations. N/A.

                h.      Detail contractual obligations. 

                           1)        Describe the type of obligation, current year dollar amount, and any changes in the payment schedule, e.g. balloon payments.  None.

                          2)         Report any inability of the District to pay current obligations that are due within the current budget year: None.

                         3)           Describe any District financial obligations in default: None.

                i.        Actual and Assessed Valuation History.  The District’s final assessed valuation for 2024 was $0.00.

                          1)         Report the annual actual and assessed valuation for the current year and for each of seven (7) years prior to current year. N/A.

                         2)           For each year, compare the certified assessed value with the Service Plan estimate for that year.  If Service Plan estimates are not available, indicate the same and report the certified value. N/A.

                j.        Mill Levy History.  N/A – The District was not organized until November 25, 2024 and did not certify a mill levy in 2024 for collection in 2025.

                           1)         Report the annual mill levy for the current year and for each of the seven (7) years prior to current year.  Break the mill levies out by purpose (e.g., debt issuance and operations and maintenance). N/A.

                          2)          For each year, compare the actual mill levy with the Service Plan estimate for that year.  If Service Plan estimates are not available, indicate the same and report the actual mill levies. N/A.

               k.      Miscellaneous Taxes History.  N/A.

                        1)           Report the annual miscellaneous tax revenue for the current year and for each of the seven (7) years prior to the current year.  Break the tax revenue out by purpose (e.g., general operations, revenue-based obligations, debt by issue, contractual obligations, other) N/A.

                        2)           For each year, compare the actual miscellaneous tax revenue with the Service Plan estimate for that year (if provided in Plan).  If the Service Plan estimates are not available, indicate the same and report the actual taxes. N/A.

               l.        Estimated Assessed Valuation of District at 100% Build-Out.  If the Approved PD results in the commercial use, the estimated assessed value at full build-out is anticipated to be approximately Thirteen Million Dollars ($13,000,000). If the Approved PD results in the residential use, the estimated assessed value at full build-out is anticipated to be approximately Two Million Dollars ($2,000,000).

                         1)         Provide an updated estimate and compare this with the Service Plan estimate. No construction has been completed to date.

            m.        Estimated Amount of Additional General Obligation Debt to be Issued by the District between the End of Current Year and 100% Build-Out.  See the Financial Plan of the District, attached as Exhibit H to the District’s Service Plan, approved by and on file with the County.

                          1)         Provide an updated estimate based on current events.  Do not include refunding bonds.  The District’s current budget does not anticipate a 2025 debt issuance.

 *For Accessibility purposes,  this is an alternate conforming version of the Annual Report. 

2024 Audit Exemption Application

2026 Mill Levy - 10.333 mills

2025 Mill Levy - 0.000 mills

2024 Budget

2024 Mill Levy - 0.000 mills

The Transparency Notice for the District can be accessed on the Special District Association website:

https://www.sdaco.org/lc/sda-transparency/notice/id/4097