Santa Fe Trail Ranch
Metropolitan District
Board Meeting
December 22, 2003, 6:00 PM
109 West Main St., Trinidad, CO

Board members
Jim Davis
Will Potter
Tom Stephens
John Woods
Dennis Scott		 Guests
Tina Woods

  1. Meeting was called to order at 6:10 pm by Jim Davis at 109 West Main St., Trinidad, CO 81082.
     
  2. All Directors were present, a quorum was declared.
     
  3. Disclosure of potential conflicts of interest - none to disclose.
     
  4. Approval of the minutes for the Board Meeting held October 6, 2003, at 109 West Main St., Trinidad, CO 81082.  The purpose of that meeting was to pass a resolution of approval of a tax-exempt water system completion loan with International Bank of Trinidad, CO.  Also, the Board was to ratify the establishment of a Completion Fee to property owners in the District, based upon the terms of the Loan Agreement.  The minutes were discussed and no additions or deletions were noted.  Dennis Scott motioned to approve and Tom Stephens seconded.  Motion was approved unanimously.
     
  5. Financials:
     
    1. A review of the current financials of the District, the year to date balance sheet, income and expense statements as well as our upcoming audit were discussed.  A number of questions arose on both the balance sheet and income and expense statements as a result of adjustments made by a former employee of Century Business Solutions, reportedly at the direction of our auditor Dixon & Waller.  As a number of these questions could not be answered by Tina Woods, who works on our account, it was recommended by the Board that we have a meeting with Century personnel and the auditor as soon as possible after January 1, 2004.
       
    2. Amendment of the 2003 budget to reflect the addition of our Completion Loan with International Bank and the subsequent debt service collection and payment schedules was discussed.  We will do so in completion of our required filing of the proposed 2004 budget with the Colorado Division of Local Government.  Also, as the water system was not in operation in 2003, the amendment will so reflect no system operating expense and no system revenues.
       
    3. John Woods made a motion to approve the year to date financials presented and the proposed amendment to the 2003 budget, with the stipulation that the board meet with Century's accounting personnel and Dixon & Waller.  Will Potter seconded the motion and it passed unanimously.
       
  6. Adoption of 2004 budget proposal:
     
    1. As there have been no further changes or projected changes in the cost of water by the City of Trinidad and as there are no foreseen changes in the projection of system operation and maintenance from the 2003 budget, it was recommended that we adopt the same operating budget as 2003.
       
    2. It was added that because we anticipate the validation of the warranty period and requirements of the original construction contract and the underlying bond of that warranty period and the fact that the Ranch population continues to grow, the anticipated operating revenues and expenses are realistic.
       
    3. John Woods motioned to adopt the proposed budget as presented.  Dennis Scott seconded and it passed unanimously.
       
  7. Resolution calling for regular election on May 4, 2004:
     
    1. It was discussed that the terms of office for Directors Woods and Stephens expire in 2004.  Although not term limited, neither Director has chosen to run for re-election.
       
    2. The proposed resolution concerning the regular election to be held May 4, 2004 was read and discussed.
       
    3. Director Davis stated that the 2004 election manual is on computer disk and is being mailed to the District by the Division of Local Affairs.  He will coordinate the required notifications, nomination processes and County coordination with Susan Schledorn of the Grimshaw & Harring law firm, our Designated Election Official.
       
    4. Dennis Scott motioned to approve the Resolution.  Will Potter seconded and it passed unanimously.
       
  8. Old Business:
     
    1. There was discussion of our legal affairs with both OPEC's bankruptcy court petition and the pending mediation with the bonding company.
       
  9. New Business:
     
    1. Director Scott brought up difficulties he was having in resolving the mechanics of the bookkeeping requirements resulting from the Completion Loan debt service options for property owners in the District.  It was determined that Directors Scott and Davis would meet immediately with Bill Quigley to resolve those issues as billing for those choosing annual payments must go out very soon with the POA annual dues notice.
       
    2. Director Davis discussed the recent inquiry received by the District from the Division of Local affairs concerning our continued participation in the Conservation Trust Fund distributions that come as a sharing of revenues from the gambling industry.  Our distributions, which are based on permanent population in the District, are used to provide the POA additional funds in maintenance of the Ranch Conservancy.  In addition to refiling our qualifications for participation, Director Davis has asked that the State revise our permanent population of record to reflect our growth since the 2000 Census and thus, increase our share of revenues.  If accepted, it will probably be realized in the 2005 cycle, as 2004 has already been established.
       
  10. There being no further business brought before the Board, John Woods motioned to adjourn.  Will Potter seconded and it passed unanimously.