Bond Debt
Series 2025 Bonds
On August 21, 2025, the District issued $15,125,000 General Obligation Limited Tax Refunding Bonds, Series 2025 (Series 2025 Bonds). The Series 2025 Bonds bear interest at rates between 5.00% and 5.25%. The proceeds from the Series 2025 Bonds was used to pay off the District's Series 2003, Series 2008 and Series 2010 bond debt. The Series 2025 Bond mature on December 01, 2055.
The Series 2025 Bonds are secured by and payable solely from Pledged Revenue, net of any Direct Costs of Collection, which is comprised of revenues generated from the Limited Mill Levy. The “Limited Mill Levy” is defined in the Bond Resolution a rate of ad valorem property tax levy expressed in mills (a mill being equal to 1/10 of 1 cent) imposed upon all
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taxable property of the District each year in an amount sufficient to pay the principal of, premium, if any, and interest on the Series 2025 Bonds and any Parity Obligations as the same become due and payable, but not in excess of 40 mills (“Maximum Limited Mill Levy”). The Maximum Limited Mill Levy is adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since January 11, 2000, which was 9.74%. The ratio for 2026 is 6.250%, which caused the Maximum Limited Mill Levy for 2026 to be 60.341.
The 2025 Bonds are insured and, therefore, the District is not required to maintain any minimum cash reserves in its Debt Fund.
The Series 2025 Bonds are subject to redemption prior to maturity, at the option of the District on December 01, 2030, and on any date thereafter, upon payment of par, accrued interest, and a redemption premium equal to a percentage of the principal amount so redeemed, as follows:
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Date of Redemption |
Redemption
Premium (%) |
Redemption
Premium ($) |
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Dec. 01, 2030 to Nov. 30, 2031 |
3.0% |
$213,900 |
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Dec. 01, 2031 to Nov. 30, 2032 |
2.0% |
$142,600 |
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Dec. 01, 2032 to Nov. 30, 2033 |
1.0% |
$71,300 |
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Dec. 01, 2033 and thereafter |
0.0% |
$ - |
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Prior Bond Debt History
On March 1, 2003, the District issued Limited Tax General Obligation Bonds, Series 2003 in the amount of $2,500,000 with a stated interest rate of 7.00% and a maturity date of December 1, 2023.
On February 13, 2008, the District issued Subordinate Limited Tax General Obligation Bonds, Series 2008 in the amount of $8,500,000. The stated interest rate on the Subordinate Bonds was 6.00% (simple interest) per annum, and the Bonds matured on December 1, 2038. The Subordinate Bonds were structured as cash flow bonds meaning that there were no scheduled payments of principal or interest prior to the final maturity date. The Series 2008 Subordinate Bonds were owned by David Garton, Jr., who served as a director on the BVMD1 board until approximately July 2022 and formerly served on the District’s board since the District’s inception (May 2000) through June 2021.
On May 25, 2010, the District issued Limited Tax Refunding and Improvement Bonds, Series 2010 in the amount of $7,370,000. The Series 2010 Bonds is comprised of two term bonds. One term bond was issued for $1,500,000 at an annual interest rate of 7.25% and is due December 1, 2024. The second term bond was issued for $5,870,000 at an annual interest rate of 8.50% and is due December 1, 2039. Approximately $3.05 million of the Series 2010 bond proceeds was used to pay down the Series 2008 Bonds.
Since 2003 through 2025, the District never generated sufficient property tax revenue to fully fund the interest payments accruing on any of its outstanding bonds. Consequently, as of December 31, 2024, accrued unpaid interest on its Series 2003, 2008 and 2010 bonds totaled $8.7 million. Cumulative interest payments on this debt between 2003 and 2024 totaled $11.4 million.
On November 01, 2022, the District filed a lawsuit in Colorado’s District Court located in Eagle County against BVMD1 and 13 individuals who previously served on the District’s board at various times between May 2000 and June 2021. A jury trial was held the week of June 24th. As a result of that trial, Eagle County District Court issued a ruling on July 11, 2024 stating (1) the DFSCA is a valid agreement, (2) District 1 breached the DFSCA, (3) damages totaling $494,507 was awarded to the District against District 1 due to District 1’s breach of the DFSCA and (4) District 1’s counterclaim that the District breached the DFSCA by terminating the DFSCA and not remitting funds to District 1 per the terms of the DFSCA was denied.
On June 03, 2025, the District entered into a settlement agreement with David Garton Jr whereby (1) the District agreed to release and discharge all of its claims against David Garton, Jr., Sande Garton, Robert Kingston, Mallie Kingston, Samantha Gale, Stephen Kelley, Scott Green, John Hill, Gayl Hill, and Anna Maria Ray (“Individuals”) and (2) David Garton, Jr. agreed to accept $1 million in cash in exchange for settling in full all outstanding principal and accrued interest (totaling $10,086,171 as of June 03, 2025) on the 2008 bonds. The District and the Individuals also agreed to (1) bear their own costs and attorney fees related to the litigation and (2) unconditionally release each other from any and all claims and future claims against each party that are in any way related to the lawsuit.
On June 04, 2025, the District, BVMD1 and (as a third‐party beneficiary) BV Firewheel entered into an amended and restated District Facilities Construction and Service Agreement (“DFCSA2”). Included within the terms of the DFCSA2 is an agreement allowing the District to levy a facility fee at the rate of $10,000 per lot on the remaining 239 of the 381 undeveloped lots within the District, which amounts to $2,390,000 in total facility fee revenue – all of which is pledged by the District to the repayment of the District’s outstanding debt. The fee is due to the District at the time of either (1) a lot is sold by BV Firewheel to a third party or (2) a certificate of occupancy is issued on the lot.
As a result of the outcome of the lawsuit and the subsequent settlement agreements, the District was able to favorably refinance its bond debt in August 2025.