Study/Work Session
July 20, 2026
Transcript
Describer:
Board Work Session
Jul 20, 2026 05:30 PM MDT
I. Call Work Session to order
A. Roll call & disclosure of potential conflicts
II. Finance Items
A. Presentation and Discussion 2025 Audit
1. Castle Pines North Metropolitan District 2025 ac Draft (PDF, opens in new tab)
2. Castle Pines North Metropolitan District 2025 ye Draft (PDF, opens in new tab)
B. Review monthly claims for payments made from June 11, 2026 to July 15, 2026
1. CPNMD Board Work Session Claims Packet 07202026 (PDF, opens in new tab)
III. Legal Items
7.20.2026 Legal Status Report - CPNMD 4936-9833-2862 v.1 (PDF, opens in new tab)
A. Review 6.15.26 Work Session Meeting Minutes
1. CPNMD Work Session Minutes 6.15.26 DRAFT 4923-2337-4526 v.1 (PDF, opens in new tab)
B. Review 6.22.26 Board Meeting Minutes
CPNMD Board Meeting Minutes 6.22.26 DRAFT 4912-3567-3790 v.1 (PDF, opens in new tab)
IV. District Manager Items
A. Discuss Water Treatment Plant Grand Opening & Name Change
V. Adjourn
Board President Jason Blankaert:
Good evening and welcome to the Castle Pines North Metropolitan District Board Work Session for July 20th, 2026, approximately 530pm. We'll begin with the roll call.
Board Member Director Tera Radloff:
Tera. Present.
Board Member Director Jana Krell:
Jana. Here.
Board Member Director James Mulvey:
Jim. Present.
Jason:
And I'm Jason Blankaert present with no conflicts.
We are missing Leah this evening. All right. We'll go ahead and move on to item number two. Finance items. I believe Molly and Eric will speak to this.
Financial Director Eric Harris:
Yes. Good evening. Board for one of our major finance items. Today we have the annual audit. And today we have Russ, Andy and Nicole with Rubin Brown. The same audit team that was has been involved with the district for a few years now.
Describer:
On screen. CPNMD Auditor Communications December 31, 2025
Draft For Discussion Purposes Only
Eric:
And I have them on the call today just to introduce the audit. And I'll let one of them take it away from here.
Russell White, CPA, Rubin Brown,LLP:
Thanks, Eric. I'm going to have Andy do our presentation this year, but just kind of want to say thanks to the board and Eric and Travis for doing a great job. We're we're way ahead of schedule and we're back on our normal schedule that we were on like 4 or 5 years ago. So I just want to say many thanks and and kudos.
So I'll turn it over to Andy and let him do the presentation.
Andy Anderson, CPA, Rubin Brown, LLP:
Perfect. Yeah. Thank you. Yeah. And just reading reiterating what Russ said, just really appreciate working working with Eric and Molly this year. And you know they're just quick to get everything ready for us. You know did a great job on the front end to provide information and then just, you know, provide a great audit schedules for us to to work through our testing and just responsive throughout the whole process.
So definitely, definitely great to work with them and definitely made this very seamless kind of going into, you know, being able to file this financial statement, you know, with the state timely. So we're really excited about that. And so let's see I see that we got on the screen the auditor communications. So we can start there. And I don't know who's controlling the screen if if I need to say next page.
Or I can also share my screen whichever.
District Manager Nathan Travis:
Yeah. And if you want to share your screen that's probably easier. I'm controlling it, but that might be a little more seamless.
Andy:
Perfect. Yeah. I'll let me see if I can share.
All right.
All right. Is this working? You should see the auditor communications here. Is that. Is that what people are seeing?
Nathan:
Looks good for me.
Andy:
Perfect. All right, so looks like this was in your board packet. I'll kind of start here. This is not too much to really discuss here. This is some of our required year end communications to you as governance.
And just kind of go through a little bit of the audit process, you know, talks about, you know, the the overall audit. It kind of talks about, you know, important accounting practices. A lot of times if there's a lot of new items, they'd kind of be disclosed here. If there are new accounting treatments or standards that were applied, this would be disclosed.
But overall, this was very, you know, typical recurring year other than, you know, obviously the IGA with the city and kind of continuing to unwind a lot of those items to the city. So yeah, you know, no real new accounting treatments here. And you know, really the, you know, it also requires us to talk about unusual transactions and, and typically nothing, you know, in the past, no real significant unusual items.
But again, with, with the whole transfer of the Parks and Rec services to the city, you know, that's kind of disclosed. And we'll go through that as I move into the financial statements. But that's that's one of the big items there. It also talks about some of the kind of the key financial statement estimates that being the net pension liability, kind of a lot of calculations and, and math behind that, that kind of makes that more of a sensitive area.
Talks a little bit about some key just, you know, sensitive disclosures as well. Again kind of relating to the pension plan there to, you know, other than this, other than those kind of items, a lot of, a lot of its wording is similar to maybe what you've seen in the past, you know, no, no difficulties dealing with management, you know, no disagreements with them, you know, going through the process.
You know, they're going through going through the audit, we typically have can have some adjustments and, you know, some of that can be brought brought to us by, you know, Eric and Molly. Some of these are like the net pension liability that we kind of perform and, and book. And then there's, there's sometimes can be these uncorrected misstatements which are, you know, pretty minor items kind of determined to be immaterial for, you know, actually booking, but just something that we typically have to keep track of and just disclose along the way.
Like I said, no, no disagreements with management. Yeah. Other than that, that's that's really the gist of this auditor communications and just kind of a gathering up of, of those items. Before I jump to the financial statements. Is there any anything, you know, Eric or Molly, anything that stuck out to you on that? Any questions from anybody on on this report?
Eric:
No questions from us. Like I said, Andy's team has been great to work with. We had some very vigorous conversation on a lot of things because we're in the midst of a transition year. And so everything from discussions on our allocations plan, discussions on our asset conveyance with the city, so very unique transactions and those same type of transactions that involve the city, we've been involved with that on their side as well, so that they can on their audited financial statements, be aware of essentially the mirror that is happening on our financial statements.
So yes, that's that's all I would like to add.
Describer:
On screen. CPNMD Financial Statements December 31, 2025
Andy:
Perfect. All right. And then, heading to the financial statements then. So I know you know over 50 pages I know there's a lot to digest there. I'll kind of try and keep this pretty high level on, on kind of some of the key items that we saw throughout the audit, some items that stick out to me.
Describer:
On screen. Independent Auditors' Report
Castle Pines North Metro
Board of Directors
Castle Pines North Metropolitan District
Castle Pines, Colorado
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities and each major fund of Castle Pines North Metropolitan District (the District), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities and each major fund of the District as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis For Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors' Responsibilities For The Audit Of The Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Andy:
We'll start with the first four pages being the auditor's report. So, you know, just the the main reason we're here and going through this is so that you can have that auditor opinion. And basically these first two paragraphs are saying that this is, you know, you're receiving a clean, unmodified opinion. You know, basically just means that, you know, in our opinion that these these financial statements can be relied on, you know, these are fairly presented and materially correct.
So that's really the the gist of these first two paragraphs here. You know, it kind of goes into how we base, you know, what we base our opinion on. We have to follow, you know, auditing guidance and standards. You know, we have we have responsibilities to be independent of the district, to follow ethical requirements. And, you know, we believe that we've met those items.
This report also talks about, you know, responsibilities of management, you know, and of of the district. And so these are, you know, overall these are your your financial statements. They're they're your accounting records. You know, that's that's falls under your guys's responsibility of building that out and tracking that and, and properly maintaining that. You know, the auditors responsibility is to just kind of come in and, and, and obtain reasonable assurance about about whether these are fairly presented and materially correct.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
STATEMENT OF NET POSITION
December 31, 2025
(With Comparative Totals For December 31, 2024)
Andy:
So that's the main key items of of our auditor's report. So then go into page five. This is your statement of net position. This is a very global level. This this really includes all of your water wastewater you know general fund. This kind of includes all activities and really like your typical for profit, you know, balance sheets. So some of the things that you'll kind of notice that that stick out here.
You know, overall, what sticks out to me is just how strong of a balance sheet this is. You know, you're looking at $149 million of assets and only $4.5 million of of liabilities. So, you know, net position is $144 million. And, you know, think of that like, like equity in the for profit world. So that's that's awesome.
It just kind of speaks to, you know, how the district has been run over, you know, several years to to really set this district up for, for the future and to just, you know, provide for the citizens. So this is awesome to see. And, you know, one thing you will notice is a big, pretty sizable drop in total assets for this year.
You know, assets dropped about $35.5 million, $35.7 million. You know, the biggest part of that was the conveyance to the city. So, you know, you guys have been working through that process. I think there are over, you know, 80 parcels of, of, of land and, and all the corresponding improvements to that, you know, have have transferred over to the city.
So even though it's a big drop, it was very much intentional. And what you guys are, are planning. And so that's, that's really the biggest driver there. And then liabilities slight decrease about $670K. Just some lower AP paid off some of the debt this year. That net pension liability decreased slightly too. So moving on to the the statement of activities on page six.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2025
(With Comparative Totals For The Year Ended December 31,
Andy:
So again, very much, you know, the global level for the whole the whole district, you'll kind of see that conveyance to the to the city, about $39 million. So that's the biggest, biggest item here. So you see how that really dropped the net position. And then you know your water and wastewater, the business type activities have had $3.5 million increase in that position, which is great.
And we'll we'll kind of get to that here soon.
Russell:
So kind of simple math on that. And you just kind of add that if you back out that $39 million conveyance, you know, you're looking at, you know, probably a positive net change in net position of about $4 million. So right, which is, you know, that's that's a good thing.
That's explainable. So if someone in the public asked, well you had a really bad year. It's like, well we you know, we conveyed the land and that those responsibilities over the city. You back that out. And we're, you know, we're close to $4 million in net income in the for profit world. So just kind of FYI.
Andy:
Perfect. So then kind of drilling down to kind of the different funds.
So the governmental the the general funds. So this, you know some smaller changes here. So this, you know, overall assets increased on this about $418,000. And you know, big chunk of that is cash and then also prepaid items. So this is kind of getting to the idea of, you know, I think this year 2025, it's kind of getting getting back to running things through the general fund as, as the starting point, as a jumping off point.
You know, most transactions are going to flow through that. And then if something directly relates to the water or wastewater, it'll kind of get allocated, you know, any sort of indirect costs also get considered for allocation and transfers. So that's kind of why this jumped up a little bit is to to be able to kind of maintain and and fund the, you know, those activities. And then similar case, you know, liabilities up as well slightly on this and then, you know, slight increase on the fund balance to which we'll get to.
Then on page nine. Yeah. So looking at the revenues and expenditures of the general fund. Again, very fairly similar trends. You know, overall revenue is down slightly on the general fund. A lot of that's from you know, oil royalties, you know, some of your other income. You know, as you guys keep conveying things over to the city, a lot of those kind of, you know, random revenue streams here and there have started moving over to, to the, to the city and kind of started to work on those being titled over there and named to the city.
Tera:
So. So yeah, Andy, I did have a question. I noticed that on the revenues is that, oil royalty income, is that part of what's getting conveyed over to the city?
Eric:
No, it is not.
Tera:
Just surprise me that it seems to be such a significant drop.
Andy:
And I, if I remember right, to I believe 2024 was kind of a I feel like that was some one off items there.
I don't know if you remember at all, Eric on that one, but I feel like that was a pretty abnormal high year. Do you have any context on that one Eric?
Eric:
I can't recall off the top of my head. I can go back and look at it, a brief analysis and send that along to you Tera.
Tera:
That’s be great.
Eric:
Just to answer the question.
But I do remember and I know we went through that Royal Oil royalty impact summary as well. But yes, they are trending. We do expect them to get lower for every subsequent year going forward. But I can I can say without a doubt that all those revenues are tied obviously to the farmland and those will be retained by this district.
Tera:
Yeah, I mean, I just looked at the overall revenue and that took me and it takes me a little bit that the property taxes were less because I thought property taxes went up. So it just kind of looked at the property taxes that stuck out the oil revenue. And I don't know what other things are in other income.
But yeah, if you just want to.
Eric:
Of course, and a little bit explanation on the property tax revenues, just those changes in assessment rates versus exemptions amounts granted. And so we'll continue to see a little bit more decline over that over the next couple of years. The exemptions I believe went away for this year. We get what for next year's tax revenues.
Excuse me but and then of course we'll be rolling in the Hidden Point revenues at some point in the future as well as those come online. So that's what you see those discrepancies. And okay, we're not getting obviously the enterprise revenue. We're getting that we're getting that in the form of property tax revenue right now as well. And that's something a separate matter that all of us as a management team have been working on as well.
So, so slight differences. Still the equitable three and a half mills. It's just the tax base was a little bit lower. Thanks, Eric.
Jim:
Eric a quick question, it’s Jim Mulvey. For the purposes of the IGA, when we did the transfers of these 80 something properties, what was the date that you guys sort of snap as far as the value of those assets, is that at the time of transfer, or is it sometime before then or do you know that?
Eric:
Yeah. So I'm going to I'll speak to this and I'm going to have Molly jump in a little bit as well. And Andy, Russ and Nicole if you want to as well. It's actually a pretty complex analysis right now because we had to use the market values that were assigned through the assessor's office. And so based on the bill of sale that occurred last year, it was roughly mid last year that that bill of sale occurred.
And there's still a balance of properties or parcels rather, that are set to be transferred to the city this year. Once that is finalized, and then the remainder of those assets will come off the books. The unique challenges we had with this is we have essentially had to come up with, at a very simplified level, a weighted average analysis based on historical developer assets and allocating those costs directly to each parcel.
So yeah, so pretty, pretty extensive effort. I can't remember the exact date that we used or but in the sum of all parts equal to that conveyance number. Molly, do you have anything to add on that.
Molly Janzen, Accountant:(with audio difficulties)
So basically it was taking what was on the books and comparing that to the county's records and matching them up and allocating the amount that we had on the books to the various assets. And we worked with the city and gave them the information. And I think they've been able to work through their own as well with the same numbers.
So we we're feeling good about that.
Andy:
And, you know, kind of on our end for, for the audit then, you know, that was kind of a big testing item on our end to, you know, look at the, the the approach by Eric and Molly on that. You know, look at any of the assumptions and the calculations on that.
And so, you know, we we went through and yeah, you know, we we agreed with their approach and and yeah, it was like Eric said kind of unique of, you know, you have a lot of these assets that are kind of just can be lumped into certain buckets and, you know, might not be identified down to the parcel level.
And so, you know, they did a really good job of, you know, kind of getting around that, you know, how do you solve that problem of just kind of looking at, all right, well, what what parcels are going, you know, what's kind of the acreage to that. You know, what do we have currently on our books capitalized. And then how do you take a value and apply it to that.
So they have definitely a very detailed sheet on all of that. And you know, we looked through that, looked through the calculation. You know, we saw the the parcels transferring over to the city. And so yeah, we're we're happy to see how that flowed through. So does that kind of address that?
Jim:
Yeah. It's I just wanted to understand when that, you know, essentially that value was applied.
And, and then I guess simple follow up question is, is of all those properties, how many are still outstanding to get transferred. Rough number I don't need exact, but or maybe I should know that.
Andy:
I think. Let me see. It might be in. Let me go to this IGA footnote real quick because I think we talk about.
Eric:
I do I do want to say I think it's less than 20 specific parcels.
We also have the acreage breakout. And so what I can do, Jim, is we can I can send you I can send the board a quick email as a follow up on what's left over.
Jim:
Okay. Yeah. I just want to know when it's when we think it's actually just going to finally close out. Yeah. Because..
Describer:
On screen. Page 43. 10. IGAs With The City
IGA Between The City And District Regarding Operation, Maintenance And Transfer Of Recreation Properties
The District and the City entered into an IGA regarding the transfer of the District's parks, recreation, trails and open space assets (the Parks and Recreation IGA), effective March 31, 2023, in order to provide for the transfer of the responsibility for the ownership, operation and maintenance of the parks, recreation, trails and open space assets from the District to the City.
In accordance with the Parks and Recreation IGA, the District is to convey to the real property, buildings, fixtures, easements for parks and trails infrastructure and interests therein related to the recreation properties that are owned by the District. During the year ended December 31, 2025, the District conveyed $38,809,734 of net book value to the City, which resulted in additional transfer costs of $315,043. The District expects the conveyance of all such real property interests, facilities and fixtures to be completed irl 2026. As of December 31, 2025, the net book value of capital assets expected to be transferred to the City is approximately $5,600,000.
Andy:
Yeah. So I think kind of in in note ten we kind of talk a little bit about, you know, all these parcels, you know, a $38 million netbook value, you know, transfer costs.
And then yeah, there's still about netbook value, $5.6 million expected to kind of be finalized. And, and and wrapped up in 2026. Okay.
Eric:
And so we do have those numbers and we'll pass those along. But what this exercise actually did for us as well in a it I mean, ultimately getting to this substantiated number, we have what's left over, which is those parcels, you know, those allocated cost per parcels as well as the farm and then the water rights.
And that's essentially all that is left on the governmental assets of the district at this time frame. But what it also made Molly and I realize is we do need to go through this exercise on the enterprise side as well, because you got to think about all the developer assets that are sitting out there. And this is the perfect time because we are, as a district, spending a lot of money on these lift stations so we can actually come up with allocated costs by building or parcel or with station.
And so we have that on our records as opposed to like, you know, an 8 to $10 million, one line item developer asset. That was from the early 90s. And so those are the type of things that we're Molly and I have been constantly working on.
Jim:
Okay. You break all that out so you can of course. Okay. Awesome.
Thank you very much. Appreciate the detail. You're welcome.
Russell:
Good question Jim. That's a good question. Yeah.
Nathan:
Yeah. I'll follow up to correct me if I'm wrong. Eric, the properties that have already been transferred this year would not have been included in the 2025 audit also, right? Yeah. So we're down to our last handful, but I'll get I'll get an update to Eric that he can include with the broader answer.
Eric:
Okay. That sounds great. Thank you Nathan.
Andy:
Perfect. Okay. So I think that wrapped up a lot of just the overall general fund questions or discussions. Let me get to page 11. Then being kind of getting back to water and wastewater funds activity. All right. So.
Yeah. So then looking at water and wastewater activity you'll kind of see, you know, revenue trended down a little bit this year. You know, a lot of that was kind of a decrease in just overall, you know, tap fees coming in, you know, slight decrease. And in those tap fees coming in for new builds. You know, a lot of those there are a lot of, a lot of that activity in 2024 and, and less of that activity in 2025.
And then the water and wastewater expenses, kind of like I said, you know, a lot, a lot more of the costs being starting point, being the general fund and then direct costs being put on the water and wastewater and then, you know, some indirect being allocated and worked through transfers.
You know, overall operating income for 2025 compared to a slight operating loss last year. And then just some changes on your non-operating revenue. So earnings on investments this year, slightly down 2024 was a pretty, pretty high high year for for markets. And 2025 was still really good for investment returns but just slightly down compared to 2024. And then, you know, your typical capital improvement charges and then some of these inter fund transfers kind of relating to these indirect costs to, to recoup on the, on the general fund.
So overall, you know, $3.5 million increase in your net position. And again, just a very extremely strong net position. You know, going back to your balance sheet, I mean, yeah, you know, total assets of $125 million on the water and wastewater funds, only $4 million of of liabilities. You know, much of this much of this is held in cash.
$49 million. So those are those are really the very positive items that I'm seeing here. And then cash flows, you know, just a lot going on in, in your cash flow for the water and wastewater funds. So you know, you still have an operating activities. Like I said, a lot of those tap fees kind of were down slightly in 2025.
So a little bit of a decrease on the the cash flows from operating activities that's kind of recouped by, you know, the water investment and some miscellaneous and revenue as well. But the other big item on the cash flow is, you know, you're just continuing to, you know, acquire capital assets. So continuing to better the, the system and, and you know, just the, the items that you have on the books.
So.
Describer:
On screen. Page 15, CASTLE PINES NORTH METROPOLITAN DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2025
1. Summary Of Significant Accounting Policies
Form Of Organization
Castle Pines North Metropolitan District (the District) is a quasi-municipal corporation and political subdivision of the State of Colorado under the Special District Act (Title 32, Article 1, Colorado Revised Statutes (CRS)). The District was organized by a court order on June 11, 1984 and is governed by an elected five-member Board of Directors (the Board). The District was established to provide water service, wastewater service, storm drainage service and parks and open space services for the benefit of the property owners, residents and users of the facilities of the District. The District has several agreements with various entities to provide additional water resources for the community. As of December 31, 2023, the District is in the process of transferring storm drainage and parks and open space services to the City of Castle Pines (the City) in accordance with an intergovernmental agreement (IGA), as disclosed in Note 10.
The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The most significant of the District's accounting polices are described below.
Andy:
And with that, you know, the next handful of pages starts the notes to the financial statements. A lot of these are very typical and recurring notes for you guys. Talk about just the overall accounting policies. And, you know, really the the biggest item here that sticks out to me is that IGA footnote. And so we kind of hit a little bit on to that.
But.
Describer:
On screen. Page 43. Lease Of Real Property
In May 2025, the District conveyed legal title of the real property and improvements related to the community center. In July 2025, the District entered into a lease agreement with the City to allow for the District's ongoing use of the community center property. The lease maturity was December 31, 2025 and automatically renews on a 12-month basis. The District will pay to the City $1 as rent for the lease term and each renewal term. The District is responsible for all costs and expenses associated with the leased premises on a triple net basis during the term of the lease.
Andy:
So we hit on on what kind of got transferred. You know the other, the other weird thing I'd say, you know, unusual circumstance for this year is kind of the, you know, leasing the community center back. So, you know, going through this, working with Eric and Molly on this, you know, going through the proper accounting treatment of that transaction, you know, under under governmental accounting rules.
You know, it kind of boils down to who's able to control, you know, much of the day to day activities and, and, you know, looking at a lot of the factors of that, it kind of boiled down to the, you know, the district still being able to really have a lot of that control. And so this actually stays on the books of the district.
And even though title has transferred and then it just discloses, you know, a $1 lease for that. So Eric, do you have any other color you want to add to that or Russ.
Eric:
I'll go first if Russ wants to add something, of course. But no, this is it's obviously we're all familiar with this lease. We spoke about it a couple times.
It's it's essentially a triple net lease on a $1 per year basis. We've actually started revisiting the lease right now. And we're going to bring this forward at a future work session. Molly, Nathan, Paul and myself are, you know, essentially looking at all the costs associated with the new operations associated with the building. And so we're and it's something that Nathan has introduced to the town as well, or to the city rather.
And so we do expect this to continue to be maybe a footnote for another, you know, you know, at least another year because we'll have an amended and restated lease this next year. But we're really looking at the bifurcation of the different operations and the uses of the building. And but ultimately kind of respecting we. Did you give the reserves to the building, to the city.
So ultimately, at the end of the day, they're the ones tasked with the the legal ownership associated with it. But we do under the current lease structure, have the control associated with the building. So that's just the important distinction, even though that title has transitioned, just one of those unique things on fixed assets in the governmental accounting world that we have to deal with.
And and Andy's disclosing it correctly here.
Russ:
Only thing I can add is that we'll look at it in another year and get that footnote to go away next year that you're after, based on the amended terminology. So that's all I have to add.
Andy:
Right? Yeah. And then basically that was really the key items from there that, that I could think of. You know, there's some, some budget to actual items, you know, nothing really significant in looking looking through this.
I know you went through the budget amendment as well, kind of discusses more of the the net pension and the para items there. But I think that's all I wanted to to touch on. Russ, is there anything that stuck out to you that I didn't cover?
Tera:
So the only other thing in the footnotes and I know Eric, I really appreciate your executive summary. I wish I would have read that before I read through the audit stuff, but that management, statement or whatever, and we can talk about that when we get to your stuff. But I that kind of stuck out out to me as missing in here too.
But overall, thank you guys that we have an audit that is clean and is on schedule is just so amazing. So thank you to everyone for doing that.
Russ:
You're welcome. Thanks for acknowledging all that. A lot of hard work on Molly and Eric's part to I mean they're they're trying to normalize the, the the activities here and basically keep on peeling the onion back to basically make it more efficient there for the district. So a lot of hard work has been going on.
Tera:
They started from behind.
And so I know that it has been I know it's been a lot of work, but.
Russ:
Yeah, it's it's shown the benefits now. And, you know, I'm happy what we see. Nathan's doing a great job of keeping the district running forward, thinking forward and, you know, not worrying about the past. And.
Guys doing a great job.
Great. Yeah. Andy, I don't have anything else to say that basically kind of high recap, clean opinion. You know, we we had discussions around allocations like Andy said and Eric said and everything's fairly presented and you should be real happy with the bush, be happy. And the, you know, the citizens of the district should be really happy.
That strong financial statement, clean audit, clean management letter. So I'll just leave with that recap. So thank you again for everything you guys have have done for us. Appreciate it.
Jason:
Yeah. On behalf of the board, we'd really like to thank everybody who's involved in this. It's been a long process and really grateful. So thank you all.
Eric:
Of course. So for tonight, what this means is this is just a work session. So if you have any questions individually feel free to email Molly and myself or or Andy directly if you'd like more in particular.
But what we would do is bring this back to the board's consideration this next week for approval, and then we'll work to finalize that with Andy and their team by the end of the month, which is end of next week.
Jason:
All right. Great. Well we'll go ahead and close out section A here the presentation and discussion of the 2025 audit. And we'll open up item B review monthly claims for payments made from June 11th to June 15th, 2026.
Describer:
On screen. TO: Board of Directors – Castle Pines North Metropolitan District
FROM: Eric Harris, Elevated Clarity (EC)
DATE: July 20, 2026
RE: Work Session Report – July 2026
Claims Submitted for Review
District Finance is submitting $1,839,316.59 in Payment Claims for review at the work session, consisting of $1,705,131.16
in checks and $134,185.43 in electronic payments.
All the invoices included in this month’s Payment Claims Presented for Review were reviewed and evaluated for compliance
with the Financial Controls Policy/Matrix.
Notable payment claims related to capital projects include the following:
- Myers & Sons Construction LLC – Filter Beds Rehab (5/1/26 – 5/31/26): $549,214.00
- The Country Club at Castle Pines – Pond #6A – 2026 Lining Project: $200,000.00
Financial Overview
A comprehensive financial report will be provided at the July Board Meeting, which will include an analysis of financial
activity through May 31, 2026.
Draft 2025 Audited Financial Statements
Following are key messages from the District's draft financial statements for the year ended December 31, 2025, prepared by
RubinBrown LLP, for the Board's review ahead of formal acceptance.
Eric:
Of course. And Molly, I'll take this one because you got a little bit of echo in the background right now.
But, the first thing I'll say is we did have a summary on here of the draft financial statements that Tera alluded to earlier. One item to note is just because the district hasn't done this before, we may opt to do this in the future. It's called what's called management discussion and analysis. And in the short form is this mDNA.
And this is essentially a management prepared memorandum or section of the audit. It's specifically unaudited by the public auditors. And it's just a summary essentially what we went through today, if that makes sense. And it could be anything from, you know, 3 to 4 to 10 to 12 pages long, if you go out and look at for profit SEC reporting entities, they have the same thing.
If, you know, a lot of it is a lot of graphs, some pictures, things of that nature. But it's essentially management's review of the financial performance for the prior year. The other equivalent, you know, some local governments or, you know, if you think about towns of cities have what's called a kafur, this is more of the management prepared section of the financial statements.
But like I said, it's it's probably to the point that we would want to do something like this. I would like to say it takes a pretty large effort by Nathan, Molly and myself to get something out the door, but we can add this in for next year. But what we can do, no direction necessary today is what we can do is give what some other several similar districts in size are preparing, and we can start talking through that of what does this look like from a process standpoint?
When will we prepare it and perhaps get some direction from the board. And we can include that as far as what we prepare for next year. it's one of those things that it's prepared alongside with the audit, and we pull in essentially the same numbers. Some repeat of the information, but it just goes on the the front of the financial statements.
Tera:
And I appreciate that, Eric, and I appreciate that your in your foresight to do that for next year. I think that is appropriate because again, you guys did Herculean effort to get this done and that we're actually getting this turned in on time this year is just I'm pretty speechless. It's amazing. I just cannot praise you enough. But the other reason that I really like that is again, even in, you know, Russ and Andy statements, the management this is you know, our this is our document and we are responsible for it.
So it completely makes sense to me that the management statement from us would be in there. But yeah, next year makes sense to me.
Eric:
Wonderful. We'll put some thought to that. We might have one additional touch base in a work session in the future, but yes, we'll start planning on that as well. And the work or the rather the timeframe associated with it to plug this in with the audit so that we book in filing on time, essentially.
Tera:
I think it's a good responsibility. And when I think we should do it, when I say we, I mean you.
Eric:
Of course, Russ.
Russ:
I think the MDA is a really good it tells a story of what's happened in the district for the year, you know, and I think next year is a good year to start that because you could probably put a paragraph in here.
Here's what we've done in the last five years as a paragraph to show what you've done. It's just throwing that out as a suggestion. You don't have to do that. But bottom line is it tells a story of what happened during the year. So it may it may add questions to you, but it basically probably will answer a lot more questions during the year than if you didn't have it.
Tera:
Appreciate that. Russ.
Eric:
Great. Thank you Tera.
Thank you. And then at the top of the memo claim submitted for review. Again, like I said, we have a lot of capital. Sorry, go ahead Tera.
Tera:
Sorry. One last thing before we leave here. I was curious about the loan. What was the wisdom behind that since obviously we were in a very strong cash position. Why did why do we take out a loan?
Eric:
So this is are you alluding to the Chase loan associated in the wastewater fund? I can actually speak to this. I was involved with the district with the first tour of duty back when we issued this loan. I can't remember the exact dollar amounts, but it was roughly $4.125 to $5 million, and it was essentially a contribution to PCWRA at the time for their capacity expansion.
So we basically took out the loan, the proceeds, and we it closed, I believe, on the final day of the year, and we sent those proceeds over to PCWRA that built their 3.0 expansion. What we didn't do during that time frame is that came specifically out of the the wastewater fund at the time. And so we I can't remember specifics, but the cash was still pretty low on the, on the, on the, on the cash balance was pretty low at the time.
In the wastewater fund. And we were still had a lot of unknowns with the Parker inclusion of what was going on with that as well. So it was just kind of a, you know, a good thing at the time to do that rate of return right now is just over, or the interest paid on that debt is 3.08%, which is actually a little bit lower than our return of money at the time.
It was actually at the back when we issued that loan. It was it was about the same cost of May. So we were able to stretch that loan out for roughly 15 years, which was didn't even quite meet the asset life associated with it. So I can get you a more detailed explanation, but at that time, we were really working through the Parker inclusion, and there was just some unknowns with the asset values and what that reserve balance was.
So a loan was issued from the marketplace.
Tera:
Okay. Yeah. I mean, it just seems surprising because I'm.
We seems like we've been a pretty good cash position, but that was it. Just why we would do a loan instead of just pay. Right. And the interest that we're running stuff through the general fund, if we need to loan that wastewater fund or if we needed to do that today, we would just loan it on the other fund.
Right. We could we yes, we could do that as well. So in the interest of the loan is less than the money that we're getting in the marketplace right now. In summary. So that's that's why we're currently in the call period associated with the loan. But then again, we are using a lot of funds right now. And we actually have some loans occurring between funds and our budget because of those expenditures associated with the wastewater fund at this time.
So we're constantly looking at whether or not we should, you know, prepay a little bit because it would be nice just to say we're 100% debt free. But but right now, since we're the rate of return is like 3.75 in the marketplace, we've just left it outstanding right now. And it's just those two payments per year.
Tera:
Okay. Thank you.
Your explanation lets me know that you've completely analyzed it. So I appreciate that.
Eric:
Of course. Thank you.
Nathan:
Real quick. Just because I got an answer back a lot faster than I expected. There are seven parcels that are in the process of being re platted. They are already in the pipeline and are expected to be approved by city council in the next month or so.
Jim:
Thanks, Nathan. Appreciate it.
Eric:
Thank you. Nathan. Wonderful. But again, please, I know you may have the board, may have a few more questions between now and next week. Feel free to funnel those questions over to us, and Molly and I will get you an answer again. At the first part of our memos. Claim submitted for payment. Again, a lot of capital being spent on the district right now.
You'll see some major capital expenditures that we've highlighted for Myers and Sons in the country club expense of the Myers and Sons construct. These were both budgeted expenses, and the Myers and Sons went through a pay application process with the district engineer. So that is and that support has been we've looked at that support and that's been reviewed.
And then the country club was our obligation for the pond 6a improvements as well. And that was also in our budget. So just you know, those high dollar ones. We just want to note for you again, we have implemented the process where as staff Nathan staff is preparing and entering invoices in the system. We do review those as well before they go out the door.
And we've also on that note is one of the we've started discussions as of actually in the last few days. So say with some new expense management modules associated with the accounting system. So we're looking forward to by the end of the year have workflow management. So you know to really get live looks on this information. And so we would send those through the software potentially for a board member to approve in accordance with our financial control policy.
So just a couple items of note associated with this. But on a process standpoint. But here it's sort of some important capital expenses that we wanted to call out as well. So again, $1.839 million in expenditures. And that consists of check and electronic payments as well. Are there any questions.
Tera:
I did not have any questions on our expenditures. Thanks.
Eric:
Great. Thank you.
Jason:
Great. Thank you. Eric. So hearing no other questions, we can go ahead and close out the review of monthly claims for payments made from June 11th to June 15th, 2026. We'll move on now to legal items. Is Paul with us?
Describer:
On screen. MEMORANDUM
TO: Castle Pines North Metropolitan District
FROM: Seter, Vander Wall & Mielke, P.C.; Paul Polito, Esq.
DATE: July 17, 2026
RE: Legal Status Report for the July 20, 2026 Work Session
MATTERS IN PROGRESS
MATTER: INTERCONNECT PUMP STATION SURGE MODIFICATIONS –
CONSTRUCTION CONTRACT
Status: Counsel reviewed and revised the construction contract documents for the District’s Interconnect Pump Station Surge Modifications project, prepared by the District’s project engineer, Level Engineering & Architecture. Counsel reviewed the form of
construction agreement together with the instructions to bidders, general and supplementary conditions, and related bid forms, and provided comments to conform the package to the District’s standard bidding documents and applicable law.
Counsel’s principal comments addressed the insurance and indemnity
requirements, including extending the waiver of subrogation to the workers’ compensation coverage, requiring additional insured endorsements covering both ongoing and completed operations on a primary and non-contributory basis, and requiring delivery of certificates and endorsements before the Notice to Proceed together with thirty days’ advance notice of any cancellation or material change in coverage.
Counsel returned the revised agreement to the project engineer, who has compiled the issued-for-bid contract package for release to prospective bidders. Once the District completes the bidding process and selects a contractor, the construction contract will come before the Board for review and award.
Action: None required at this work session. The construction contract will be presented to the Board for award following bid opening.
Legal Counsel Paul Polito, Esq.:
That I am. Good Evening, everyone.
Hello Paul. Hello. Quick legal report tonight. Legal status report is on page 68 out of 81 of your packet. I'll go through a few of these items and some of the updates that I have for you. So starting right at the top, this interconnect pump station surge modifications, construction contract. Nathan was talking about this at the last meeting.
We had gone back in and determined that this required a bid. So this goes into some of the comments and revisions that I've gone back and forth with, with the bid reviewer.
Everything is looking good so far. Nothing for me to bring before the board at this time. Which brings us to the Hidden Point Metro District inclusion. I am very happy to report that we did get an order last Monday, July 13th. The court has set the election on the inclusion. It will be on November 3rd. It will be conducted within the boundaries of Hidden Point by Castle Pines.
Hidden point will be paying for the election. We'll be running it, Mitch Barossa will be the DEO for that. That's our firm's paralegal. Any questions about either of those items before I move on?
Tera:
One on the first one, I appreciate you mentioning that we are putting everything into our standard bidding documents. I assume that's based on some of the input in our standard language.
Like our frequent visitor Steve has done. I was a little surprised on the metro district that the election is going to be conducted as an independent mail ballot in November. Maybe is that cost instead of just adding it as a coordinated election question to the ballots, that would go out? I mean, it seems like they would get a better response if it is on a coordinated ballot.
And that also saves money.
Paul:
It's it's something I went back and forth with myself and had some discussions about. There's you you may get a better turnout. You may get less. I'm trying to think of the right word to say this support. Yeah, you may get less support because, you know, maybe you have the tendency for people to just vote no down the ballot on certain issues.
Whereas if you have an independent mail ballot, it's a separate thing. It's a separate package that's coming to the voters. It's something they may read themselves and it may go along with the efforts that Hidden Point is conducting in order to inform the electorate that, hey, this is coming. Here's what this question means. Here's why you should vote for it.
So, you know, to your point, yeah, pros and cons of doing both could have absolutely been.
Tera:
But yeah yeah great points. Thank you.
Paul:
Yeah absolutely. Does anybody have any other questions about either of these items before I move on.
Okay.
Just a few. One other quick update here on the service plan amendment. So we've been going back and forth with Douglas County on some submittals that they've requested as a part of this. Everything's going smoothly so far. They just sent out referrals, basically collecting comments from any sort of agency that might be affected from the service plan amendment.
I don't expect that there will be many since all we're doing is eliminating some services. But at any rate, that end date to collect comments was on Wednesday, July 15th. So five days ago. We're just waiting to hear back from the county as to what comments they did receive. And then we're looking at at a hearing in front of Douglas County and wrapping this up.
Other than that, a few items that will be in the hopper very soon. And as Eric mentioned, I'll be I'll be drafting and sharing an amended and restated building lease agreement. And then I'll also be looking into a potential IGA with Hidden Point regarding a slight surcharge issue. We're running into. Essentially, if you include a property after May 1st of a year, you cannot collect.
You cannot collect the mill levy from that included territory. That conflicts with our IGA, that we entered into Hidden Point where the intent was, okay. If you were included before the levy certification date December 15th, then you know everything per the IGA is done and you're fine. But this inability for the district to collect property tax revenue from Hidden Point for the next year complicates a little bit.
So what you will likely see at the next work session is a is a second, very small, self-contained IGA between us and hidden point basically accounting for that. That Hidden Point will designate the equivalent mill levy and remitted to Castle Pines for that year. So puts a Band-Aid on that addresses that. That one issue that we ran into with the timing.
And that's about it for legal is anybody have any questions for me before we move on to the minutes.
Eric:
And so sorry you go. So this is something that came up in the last six weeks or so we tried to rectify with the original IGA early on. But essentially what this will be for is just the contribution. It will just be IGA revenues coming in for this next year, and they will have in district rates for 2026 calendar year.
So it's just kind of a unique concept right now. Essentially what it does is it gives by by design. It allows the assessor not to rush through things to make things equitable. They're aware of the new taxing area that would be created as a result of all of this. But of course, we can't go around state statute related to this as well.
So this is kind of the the long tail, if you will associate with this process that we kicked it off. We have to do, you know, do all the agreements, all the legal work associated have the election. But then there's actually a whole another year associated with the time frame associated with it. But we do want to basically put everything behind us as quickly as possible so that we can get these constituents in district rates, but we still receive that, that revenue.
So I've been in communication with the Hidden Points management company. So they're kind of where they are aware of, excuse me of the budgetary implications and what they'll be doing with that. So we'll we'll have a mechanism to collect those funds this next year. If, if both boards approve this IGA.
Paul:
And after speaking with the Hidden Point Metro District President, they are very open to the idea and didn't have any issue with it.
Tera:
And I know you guys talked about this and I think the auditors mentioned it, but and I highlighted it. When I find it, I'll go back and send it to you guys. But it has to do with the lease.
And I know you guys are reviewing it, but even the auditor said something about that. We have control over what happens in that building. And my question is, do we really? We don't reserve the rooms anymore. You know, we have offices there, but are we really controlling the building?
Eric:
Sorry, sorry. Go ahead. Paul.
Paul:
No, no no, please go ahead.
Eric:
So agreed. And this was a minor difference of opinion when we got down to it. Because when we looked at it, you know, by the letter of the law, it's the city, if that makes sense. But it's what's defined as financial control and kind of is a different lens in the accounting world to look at that.
That's why it is. But what, what we've decided to do, and this is ultimately we had a couple of different looks at this over the last couple of months is if we looked at how the lease was executed and what's in the appendix of the lease, essentially it just refers to the singular parcel, essentially the building and the parcel IDs associated with 7404 Yorkshire Drive.
When we split this out a little bit further and we discussed this as a team, there's essentially four different types of assets or responsibilities associated with this, one being, of course, Nathan and his team's offices and that add on associated with it. There's of course, the community center, which the improvements are being built in right now, where we will be hopefully hosting, having these meetings next month in which we don't get priority.
You know, associated with that, the the the town is, you know, responsible for administering and collecting all the revenues associated with it. Of course, then we have the revenue generating activities associated with this, the telecom, the cell phone towers, the two on premise. So in particular calling those things out and then talking about the basement as well of, well, the town's parks and recreational operations, even though it used to be the districts are maintaining that as well.
And then there's some shared common spaces as well. So what we're doing is taking, you know, more of a dive, if you will, on, you know, if you look at that lease in the future, it's going to be an amended, restated lease. It's going to show where the responsibilities lie. And that's where we will probably bring on a lease asset next year onto our books, as opposed to just saying by default, you know, we have control and it doesn't financial control if you will.
But at the end of the day, if if there's some sort of enforceability associated with that lease, it's the city that does own that building and is titled, if you go to the assessor's records, we gave contributions to the city, but, you know, in the form of those that cash that went over out of our parks and open space and general funds a couple of years ago.
And what we're also looking at is capital reserves and O&M responsibilities as well. You know, what, as a tenant do we have in the form of a parking lot or ADA access or anything of that nature as well, making sure that this building doesn't, you know, it stays improved upon in the future, and also calling out the operational responsibilities associated with the telecom facilities that the town or the city did install in that facility.
I don't anticipate that we would, as a district, be maintaining those. The town built those facilities as well. So we're we're getting a few layers deeper in all of that. And that's the intentionality we want to do with this lease. But to the comment of, you know, what was disclosed, the financial footnotes, it was a minor difference of opinion.
The auditor solved this way, even though we put a lease asset on our books. They said, well, technically it's it's this weird nuance that we have to account for, even though title did convey to the district. And so that's what happened as it relates to that. But that's the purpose of the lease that we want to bring forth to you.
Tera:
That the bottom of page 54, lease of real property.
Right. And it says the district is responsible for all costs and expenses associated with the lease premises on a triple net. So anyway, that doesn't necessarily sound accurate. It's probably true for 2025. Right. But I do appreciate you looking at the lease and a very.
Forensic accounting way.
Eric:
Right. And a lot of it is I think all parties are aligned. Nathan has introduced this to the city of, you know, saying, we just want to take another look at this and just carving out those responsibilities, because what we didn't know when we executed that leased last year was that they were in a performance improvements.
So it's actually fair for us to look at it again, if that makes sense. Exactly. Of course. Thank you. Yes. But it is a unique concept. I do agree. Does look odd when you look at the assessor's records and you see the city is on the deed associated with the building, but no, we have to keep it on our balance sheet.
It's a unique concept.
Jim:
I've got an associated question and may not be able to answer it today. But with regard to the partitioning of the offices. Again, I've not been in the building since we we left it a few months ago, but, is the office space going to get partitioned off because you're going to have public events and things like that in the, in the areas that we've added the new equipment to and reconfigured it.
Is that taken care of now, Nathan, or is that something that's still in process?
Nathan:
Yeah. The offices have always been like our at least our CPNMD offices have always been separate from the community center. So we have lockable doors, lockable secure doors that separate the actual building from or separate our office space from the community center, if that's what you're asking.
Jim:
Yeah. Pretty much so good. Good to hear it. I mean, I honestly never noticed because the doors are always open when we're in there, but never really looked and never had a concern to look before. So thank you.
Eric:
Of course. And during this exercise to we're looking at even all the operations and maintenance it would be okay. So what about insurance.
Do we have to ensure all these new facilities in the telecom? I expect not, but those are some of the concepts. So are they going to have an asset manager or a building manager on their side of the building? Just some very kind of unique things. But we're trying to look at it through the lens of both parties.
Tera:
Right. Because if somebody falls down the steps, it's not on us. Correct?
Jason:
Okay, okay. Did you have more to add to your legal items?
Paul:
None other than a review of the work session and regular board meeting minutes from June. If anybody has any questions, comments, concerns for me on those happy to address them. Otherwise, that does wrap up the legal report.
Jason:
Okay, I do not hear any comments. So I think everything's good there. All right. Thanks, Paul. With that, we'll go ahead and close out legal items and we'll move on to item number for the district manager items. Take it away Nathan.
Nathan:
Yeah good evening guys so I do oh you some information especially about Wells. I will have that for you at the board meeting.
Really? The only thing I wanted to bring up and discuss tonight was the water treatment plan, grand opening, and then a name change for the facility. So the grand opening has been scheduled for September 5th, September 19th. So that'll be kind of an open house format. We're working with Sigler Communications. Probably do some saw some sort or form of ribbon cutting there.
So mark your calendars. I can also send out an invite and more information as we get that kind of coming, coming along. And then I have talked to a couple of you about this, but Greg and I left it a little bit vague on the agenda. Greg Sakera, who works with Kennedy Jenks, long time district engineer. He's been the district engineer for Castle Pines Metro District 30 ish plus years, so he's been around for a really, really long time.
Fantastic engineers had a really heavy impact on the district. He is getting set to retire, so I thought it would be a well-deserved gesture if the board would be open to doing a resolution renaming the water treatment plant the Greg Sekera Water Purification Facility, or some version of that. So I just kind of wanted to throw that out there and see what the appetite there would be.
Jason:
What kind of expenses are associated with that? Would we have to repaper? What else do we have to do?
Nathan:
We would do a quick notification to the state, just letting them know that the name of the facility is changed, and then probably put a plaque on the outside of the building. So a couple hundred bucks.
Tera:
I kind of think through that a little bit.
I think it's appropriate to honor him in some way. I'm not sure about the expenses and stuff, but I think.
I just remember the history of there being issues, naming things up for people who are still living.
That we may want to think through. So can I just I can't really I'm in favor of acknowledging all of his efforts to put into that. I'm not sure that's the way to do it, but I need a little time to think that through. Sounds good.
Jana:
Oh, I'm not crazy about it. Because he is not a citizen or an employee or a board member.
So to me, again, Tera said, all the niceties, I'll just say the my opinion and it's the to me, it's an a consultant. And though he was very valuable, that doesn't warrant a building to be named after him. Very curt of me, but.
Jason:
And I guess I'm sorry, Jim, go ahead.
Jim:
I was just kind of on Tera's thing. I, I kind of agree with that. I just want to think it through a little bit. I'm not adverse to it. I just want to mull it over a little bit. That's all I have to say. Thank you.
Jason:
Yeah. I'm not sure how I feel about it yet either. If you can give us some alternatives to that would be helpful in other ways, we could recognize him. Yeah, absolutely. Do believe he needs to be recognized. But I don't know that a building is appropriate, so.
Nathan:
Yeah, I can do that. Thanks.
Jason:
Any other items on your agenda?
Nathan:
No that is all I have for tonight.
Jason:
All right. Very well. Does anybody else have anything they like to say?
Jana:
I do have a quick question. I believe I missed just a quick meeting that you had, for change order or anything. Did that come together?
Nathan:
So the board approved. I can't remember what the expenditure was off the top of my head.
Somewhere around like $875,000. We are still waiting on what the actual official change order will be. So they're pulling together, pulling together pricing for us. And then there's also a couple construct-ability questions that we're addressing with the final pipe alignment. But I should have...
Jana:
You gave, you gave the board an update on that. They'll talk to that through. Yeah.
Perfect. Okay. And so we just don't have a final number. But everybody was good with proceeding with that. The east of okay. Thank you guys for letting..
Nathan:
West of Forest Park Drive.
Jana:
Perfect. Thank you.
Tera:
I think you were instrumental because you had a great point which is I think you call that it would be irresponsible not to do it right?
Jana:
I thought I said something else, but that's okay. Nathan might have changed my word.
Nathan:
Oh, no, that was that was Leah's comment.
Jim:
Yeah. I just the only the only question I would have, Nathan, if you just kind of because the meeting was kind of a very quick meeting and, if you could just give a little bit like in the official meeting, if we could just do some a bit more background on, on the run up to that additional cost and, and just provide some detail associated with it.
Nathan:
Yeah. I could throw the other I can throw together a report.
Jim:
I mean, you know, I heard what you said. It was like, you know, they once they started getting into it, you know, it was in worse shape than they thought. But, you know, maybe some details associated with that. Appreciate it. Happy to.
Jason:
Well, great. If there's nothing else we can go ahead and close out item number four and move to item number five and adjourn the meeting. Thank you everyone.
All speak:
Thank you guys. Have a great night. Good night guys. Bye bye.