HomeMy WebLinkAbout20102351.tiff COLLINS COCKREL & COLE
A PROFESSIONAL CORPORATION
PAUL R.COCKREL ATTORNEYS AT LAW - ASSOCIATES
JAMES P.COLLINS 390 UNION BOULEVARD,SUITE 400 •KATHRYN L.GARNER
ROBERT G.COLE DENVER.COLORADO 80228-1556 - CALLISON C.ULMER
TIMOTHY J.FLYNN LI r' C.
of COUNSEL
EVAN D.ELA TELEPHONE: 303-986-1551
LINDA G.ALEXANDER TOLL FREE'. 800-354-5941 ERIC C.JORGENSON
JAMES M.MOCK
DAVID A.GREHER FACSIMILE: 303-986-1755 - - -., ;
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DIRECT DIAL
303-218-7206
September 29, 2010
Board of County Commissioners
Weld County
P. O. Box 758
Greeley Colorado 80632
Re: East I-25 Sanitation District
Dear Commissioners:
Pursuant to Section 29-1-606(7), C.R.S., enclosed is a copy of the Audit for fiscal
year 2009 on behalf of the East 1-25 Sanitation District.
Please contact this office if you have any questions.
Sinc ely,
COA
Micki L. Wadhams
Paralegal
Enclosure
cc: Ms. Stephanie Stewart
Umrnuni c.c,.•tor5
lo- t-r-1 O 2010-2351
1(10203424 DOC/
$6oO91
EAST 1.25 SANITATION DISTRICT
Weld County,Colorado
FINANCIAL STATEMENTS
December 31,2009
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT I
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Assets 1
Statement of Activities 2
Fund Financial Statements:
Balance Sheet-Governmental Funds 3
Statement of Revenues, Expenditures and Changes in Fund Balances-
Governmental Funds 4
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 5
General Fund- Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 6
Notes to Financial Statements 7
SUPPLEMENTAL INFORMATION 16
Debt Service Fund - Schedule of Revenues, Expenditures and Changes in
Fund Balances- Budget and Actual 17
Schedule of Outstanding General Obligation Bonded Debt Service
Requirements to Maturity 18
Summary of Assessed Valuation, Mill Levy and Property
Taxes Collected 19
�VT7 WAGNER
WI ) BARNES, PC
Certified Public Accountants &Business Consultants
Independent Auditors' Report
Board of Directors
East 1-25 Sanitation District
Weld County, Colorado
We have audited the accompanying financial statements of the governmental activities
and each major fund of East 1-25 Sanitation District (the District) as of and for the year
ended December 31, 2009, which collectively comprise the District's basic financial
statements as listed in the table of contents. These financial statements are the
responsibility of the District's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
The District has not presented management's discussion and analysis that the
Governmental Accounting Standards Board has determined is necessary to supplement,
although not required to be part of, the basic financial statements.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and each major
fund of East 1-25 Sanitation District as of December 31, 2009, and the respective
changes in financial position thereof and the budgetary comparison for the general fund
for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
Our audit was conducted for the purpose of forming an opinion on the financial
statements that collectively comprise the District's basic financial statements. The
supplemental information listed in the table of contents is presented for purposes of
additional analysis and is not a required part of the basic financial statements of the
District. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
tOar,,t,t a H„� P
Lakewood, Colorado
July 30, 2010
I
Wagner Barnes, PC
735 South Xenon Ct.,Suite 200•Lakewood,Colorado 80228
303.202.1800 Office• 303.237.0155 Fax•wwwwbcpaco.com
BASIC FINANCIAL STATEMENTS
EAST I-25 SANITATION DISTRICT
STATEMENT OF NET ASSETS
December 31,2009
Governmental
Activities
ASSETS
Cash $ 91,615
Cash- Restricted 3,500
Receivable- County Treasurer 2,217
Property taxes receivable 585,050
Total assets 682,382
LIABILITIES
Accounts payable 27,522
Accrued interest payable 894
Deferred property tax revenue 585,050
Noncurrent liabilities
Due within one year 226,539
Due in more than one year 210,423
Total liabilities 1,050,428
NET ASSETS
Restricted for:
Emergency reserve 3,500
Unrestricted (371,546)
Total net assets $ (368,046)
These financial statements should be read only in connection with
the accompanying notes to financial statements.
1
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EAST I-25 SANITATION DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2009
Total
Debt Governmental
General Service Funds
ASSETS
Cash and investments $ 91,615 $ - $ 91,615
Restricted cash and investments 3,500 - 3,500
Receivable - County Treasurer 2,217 - 2,217
Property taxes receivable 117,010 468,040 585,050
TOTAL ASSETS $ 214,342 $ 468,040 $ 682,382
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 27,522 $ - $ 27,522
Deferred property tax revenue 117,010 468,040 585,050
Total liabilities 144,532 468,040 612,572
FUND BALANCES
Reserved for:
Emergency reserve 3,500 - 3,500
Unreserved,reported in:
General Fund 66,310 - 66,310
Total fund balances 69,810 - 69,810
TOTAL LIABILITIES AND
FUND BALANCES $ 214,342 $ 468,040
Amounts reported for governmental activities in the statement
of net assets are different because:
Long-term liabilities, including bonds payable, are not due and payable
in the current period and,therefore, are not recorded as liabilities
in the funds
Bonds payable (226,539)
Accrued interest payable-Limited Tax G.O. Bonds (894)
Developer advance payable (192,080)
Developer advance interest payable (18,343)
Net assets of governmental activities $ (368,046)
These financial statements should be read only in connection with
the accompanying notes to financial statements.
3
EAST I-25 SANITATION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended December 31,2009
Total
Debt Governmental
General Service Funds
REVENUES
Property taxes $ 81,462 $ 325,849 $ 407,311
Specific ownership taxes 32,729 - 32,729
Investment income 27 83 110
Total revenues 114,218 325,932 440,150
EXPENDITURES
Accounting 10,350 - 10,350
Treasurer's fees 1,289 4,888 6,177
Engineering 55,386 - 55,386
Dues and subscriptions 1,225 - 1,225
Legal services 164,447 - 164,447
Miscellaneous 30 - 30
Debt service
Bond interest - 49,603 49,603
Bond principal - 277,909 277,909
Total expenditures 232,727 332,400 565,127
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (118,509) (6,468) (124,977)
OTHER FINANCING SOURCES (USES)
Developer advances 58,100 - 58,100
Transfers to other funds (6,468) - (6,468)
Transfers from other funds - 6,468 6,468
Total other financing sources(uses) 51,632 6,468 58,100
NET CHANGE IN FUND BALANCES (66,877) - (66,877)
FUND BALANCES-BEGINNING OF YEAR 136,687 - 136,687
FUND BALANCES-END OF YEAR $ 69,810 $ - $ 69,810
These financial statements should be read only in connection with
the accompanying notes to financial statements.
4
EAST I-25 SANITATION DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF ACTIVITIES
Year Ended December 31,2009
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances- Total governmental funds $ (66,877)
The issuance of long-term debt(e.g.,bonds,leases)provides current
financial resources to governmental funds, while the repayment of
the principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction,however,has
any effect on net assets. Also, governmental funds report the effect
of issuance costs, premiums, discounts and similar items when debt
is first issued, whereas these amounts are deferred and amortized in
the statement of activities. The net effect of these differences in the
treatment of long-term debt and related items is as follows:
Current year bond principal payment 277,909
Current year Developer advance (58,100)
Some expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
as expenditures in governmental funds
Interest on Developer advance (18,002)
Accrued interest payable, net change (894)
Changes in net assets of governmental activities $ 134,036
These financial statements should be read only in connection with
the accompanying notes to financial statements.
5
EAST I-25 SANITATION DISTRICT
GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL
Year Ended December 31,2009
Variance with
Final Budget
Budget Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 81,475 $ 81,475 $ 81,462 $ (13)
Specific ownership taxes 40,737 40,737 32,729 (8,008)
Investment income 4,000 4,000 27 (3,973)
Total revenues 126,212 126,212 114,218 (11,994)
EXPENDITURES
Accounting - 15,000 10,350 4,650
County treasurer's fees 1,222 1,222 1,289 (67)
Engineering 14,400 60,000 55,386 4,614
Dues and subscriptions - 1,500 1,225 275
Legal services 200,000 200,000 164,447 35,553
Miscellaneous - 100 30 70
Contingency 6,668 27,639 - 27,639
Total expenditures 222,290 305,461 232,727 72,734
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (96,078) (179,249) (118,509) 60,740
OTHER FINANCING SOURCES
Developer advances 96,078 179,249 58,100 (121,149)
Transfers to other funds - - (6,468) (6,468)
Total other financing sources 96,078 179,249 51,632 (127,617)
NET CHANGE IN FUND BALANCES - - (66,877) (66,877)
FUND BALANCES -
BEGINNING OF YEAR - - 136,687 136,687
FUND BALANCES-END OF YEAR $ - $ - $ 69,810 $ 69,810
These financial statements should be read only in connection with
the accompanying notes to financial statements.
6
•
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009
NOTE 1 -DEFINITION OF REPORTING ENTITY
East I-25 Sanitation District(District), a quasi-municipal corporation and political subdivision of
the State of Colorado, was organized on November 1, 2007 and is governed pursuant to
provisions of the Colorado Special District Act. The District was organized to provide
construction, installation, financing and operation of public improvements, including sanitary
sewer. The District's service area is located entirely within Weld County, Colorado.
The District follows the Governmental Accounting Standards Board (GASB) accounting
pronouncements which provide guidance for determining which governmental activities,
organizations and functions should be included within the financial reporting entity. GASB
pronouncements set forth the financial accountability of a governmental organization's elected
governing body as the basic criterion for including a possible component governmental
organization in a primary government's legal entity. Financial accountability includes, but is not
limited to, appointment of a voting majority of the organization's governing body, ability to
impose its will on the organization, a potential for the organization to provide specific financial
benefits or burdens and fiscal dependency.
The District is not financially accountable for any other District organization, nor is the District a
component unit of any other primary governmental entity.
The District has no employees and all operations and administrative functions are contracted.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant accounting policies of the District are described as follows:
Government-wide and Fund Financial Statements
The government-wide financial statements include the statement of net assets and the statement
of activities. These financial statements include all of the activities of the primary government.
The effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues are the only
activities currently reported by the District.
The statement of net assets reports all financial and capital reserves of the District. The
difference between the assets and liabilities of the District is reported as net assets.
7
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009
NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The statement of activities demonstrates the degree to which the direct and indirect expenses of a
given function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase,use, or directly benefit from goods, services, or privileges
provided by a given function or segment, and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for the governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
Measurement Focus,Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the District considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. The material sources of revenue
subject to accrual are property taxes and interest. Expenditures, other than interest on long-term
obligations, are recorded when the liability is incurred or the long-term obligation is paid.
The government reports the following major governmental funds:
General Fund - The General Fund is the general operating fund of the District. It is used to
account for all financial resources except those required to be accounted for in another fund.
Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources
for, and the payment of long-term obligation principal,interest and related costs.
8
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Budgets
In accordance with the State Budget Law, the District's Board of Directors holds public hearings
in the fall each year to approve the budget and appropriate the funds for the ensuing year. The
appropriation is at the total fund expenditures level and lapses at year end. The Board can
modify the budget by line item within the total appropriation without notification. The
appropriation can only be modified upon completion of notification and publication
requirements. The budget includes each fund on its basis of accounting unless otherwise
indicated.
Pooled Cash and Investments
The District follows the practice of pooling cash and investments of all funds to maximize
interest earnings. Except when required by trust or other agreements, all cash is deposited to and
disbursed from a single account. Cash in excess of immediate operating requirements is pooled
for deposit and investment flexibility. Investment earnings are allocated to the participating
funds based upon each fund's average equity balance in the total cash.
Investments are carried at fair value.
Property Taxes
Property taxes are levied by the District's Board of Directors. The levy is based on assessed
valuations determined by the County Assessor generally as of January 1 of each year. The levy
is normally set by December 15 by certification to the County Commissioners to put the tax lien
on the individual properties as of January 1 of the following year. The County Treasurer collects
the determined taxes during the ensuing calendar year. The taxes are payable by April or, if in
equal installments, at the taxpayer's election in February and June. Delinquent taxpayers are
notified in August and generally sales of the tax liens on delinquent properties are held in
November or December. The County Treasurer remits the taxes collected monthly to the
District.
Property taxes, net of estimated uncollectible taxes, are recorded as deferred revenue in the year
they are levied and measurable. The deferred property tax revenue is recorded as revenue in the
year it is available or collected.
Reserved Fund Balance
The fund balances have been reserved for that portion of the fund balance that is legally
segregated or is not subject to future appropriation.
9
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009
NOTE 3- CASH
Cash and investments as of December 31, 2009 are classified in the accompanying financial
statements as follows:
Statement of net assets:
Cash $ 91,615
Cash-Restricted 3,500
95,115
Deposits with Financial Institutions
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government
deposit cash in eligible public depositories. Eligibility is detu.niined by state regulators.
Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible
collateral is determined by the PDPA. PDPA allows the institution to create a single collateral
pool for all public funds. The pool for all the uninsured public deposits as a group is to be
maintained by another institution or held in trust. The market value of the collateral must be
102%of the aggregate uninsured deposits.
The State Commissioners for banks and financial services are required by statute to monitor the
naming of eligible depositories and reporting of the uninsured deposits and assets maintained in
the collateral pools.
At December 31, 2009,the District had no uninsured deposits.
NOTE 4 -INTERGOVERNMENTAL AGREEMENT
On November 14, 2008, the District entered into an Intergovernmental Agreement with St. Vrain
Sanitation District (St. Vrain). Pursuant to this agreement the District shall construct, at its sole
cost and expense, a Collection System and new line for connection from St. Vrain's
Interconnection Point in accordance with the specifications set forth by St. Vrain. Additionally,
upon conveyance of the constructed Collection System to St. Vrain by the District, St. Vrain
shall assume all responsibility for maintenance of the Collection System. All users within the
District shall purchase a connection directly from St. Vrain. The connection fee will consist of
St. Vrain's then current tap fee, a reimbursement charge as determined by both parties, and any
additional District fees as established by its Board of Directors. St. Vrain shall act only as the
collection agent for the District's fees and shall remit all collected District fees back to the
District.
10
•
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009
NOTE 5-LONG-TERM OBLIGATIONS
The District's long-term debt activity for the year ended December 31,2009 was as follows:
Balance at Balance at
December 31, Net Issues/ Retirements/ December 31, Current
2008 Additions Refundings 2009 Portion
Limited Tax G.O. Bonds Series 2008
No.R-1 $ 90,718 $ - $ 49,980 $ 40,738 $ 40,738
No.R-2 123,306 - 67,934 55,372 55,372
No.R-3 61,801 - 34,049 27,752 27,752
No.R-5 19,988 - 11,012 8,976 8,976
No.R-6 84,731 - 46,681 38,050 38,050
No.R-7 82,603 - 45,499 37,104 37,104
No.R-8 41,301 - 22,754 18,547 18,547
Developer advances 133,980 58,100 - 192,080 -
Developer advance interest 341 18,002 - 18,343 -
$ 638,769 $ 76,102 $ 277,909 $ 436,962 $ 226,539
Note: No.R-4 has been cancelled and replaced with No.R-7 and No.R-8
Series 2008, $504,448 Limited Tax General Obligation Bonds, Dated November 14, 2008
(the Series 2008 Bonds). The Series 2008 Bonds are serial bonds which are due November 14,
2048. Interest of 9.0% is payable annually on December 15. To the extent interest is not paid
when due, interest shall compound annually on December 15 of each year, commencing
December 15, 2009. Any amounts of principal and interest remaining unpaid on the Bonds on
the Maturity Date shall be cancelled and discharged. The Series 2008 Bonds are being issued to
each of the Developers in order to reimburse the Developers for the Reimbursable Costs, which
the District has recognized under the Reimbursement Agreement.
The Bonds are secured by and payable from the Pledged Revenue consisting of monies derived
by the District from the following sources, net of any collection costs: (1) the Required Mill
Levy, (2) any other legally available monies which the District determines to be treated as
Pledged Revenue. Required Mill Levy means an ad valorem mill levy imposed upon all taxable
property of the District each year in the amount sufficient to pay the principal, premium if any,
and interest on the Bonds as the same become due and payable. The maximum Required Mill
Levy is 20 mills. For collection year 2010,the District levied 20 mills for debt service.
11
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009
NOTE 5-LONG-TERM OBLIGATIONS (CONTINUED)
It is the Board's intent to retire all outstanding interest and principal on the Series 2008 bonds by
December 15, 2010. It is estimated that the interest and principal amounts will be $20,839 and
$226,539 respectively.
Debt Authorization
On November 7, 2000, a majority of the qualified electors of the District authorized the issuance
of indebtedness in an amount not to exceed $90,000,000, at an interest rate not to exceed 18%
per annum. At December 31, 2009, the District had authorized but unissued indebtedness from
this election in the following amounts allocated for the following purposes:
Authorized Remaining
November 7, at
2000 Authorization December 31,
Election Used 2009
Sanitary sewer $ 30,000,000 $ 504,448 $ 29,495,552
Operations and maintenance 30,000,000 - 30,000,000
Refunding financial obligations 30,000,000 - 30,000,000
$ 90,000,000 $ 504,448 $ 89,495,552
In the future, the District may issue a portion or all of the remaining authorized but unissued
general obligation debt for purposes of providing public improvements to support development
as it occurs within the District's service area.
NOTE 6-NET ASSETS
The District has net assets consisting of two components-restricted and unrestricted.
Restricted assets include net assets that are restricted for use either externally imposed by
creditors, grantors, contributors, or laws and regulations of other governments or imposed by law
through constitutional provisions or enabling legislation. The District had restricted net assets as
of December 31, 2009 as follows:
12
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
NOTE 6-NET ASSETS (CONTINUED)
Governmental
Activities
Restricted net assets:
Emergency reserve $ 3,500
Total restricted net assets
The District's unrestricted net assets as of December 31, 2009 totaled $(371,546). This deficit
amount was a result of the District being responsible for the repayment of bonds issued for
operations expenditures.
NOTE 7-RELATED PARTY
The Developers of the property which constitutes the District are Benson Farms, LLC, Zeek
Partnership, LLLP, Sekich Farms, Inc., Reynolds Cattle Company, Postle Properties III, LLC
and Forestar Real Estate Group. The members of the Board of Directors are employees, owners
or are otherwise associated with the Developer and may have conflicts of interest in dealing with
the District.
NOTE 8-DEVELOPER ADVANCES
The District has entered into Funding and Reimbursement Agreements with the Developer as
follows:
Advance and Reimbursement Agreement
On November 14, 2008, the District entered into an Advance and Reimbursement Agreement
with Benson Farms, LLC (Benson Farms), Zeek Partnership, LLP (Zeek), Sekich Farms, Inc.
(Sekich), Reynolds Cattle Company(Reynolds), Postle Properties III, LLC (Postle) and Forestar
Real Estate Group (Forestar). The agreement was amended on March 19, 2009 to clarify certain
terms and provisions and to add George S. Reynolds Marital Trust(Reynolds Trust) as a party to
the agreement. Benson Farms, Zeek, Sekich Farms, Reynolds, Postle, Forestar, and Reynolds
trust are collectively the Developer. Under the terms of this agreement the Developer agreed to
provide advances to the District for the purpose of funding construction, operations and
maintenance costs of the District. The District will reimburse the Developer for the advances
subject to annual appropriation, when and if monies become available to do so plus accrued
interest at the rate of 10% per annum. Principal of and interest on advances shall be due
annually on December 15. To the extent interest on advances is not paid when due, such interest
shall compound annually on December 15 at the interest rate set forth above.
13
•
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009
NOTE 9-RISK MANAGEMENT
The District is exposed to various risks of loss related to torts,thefts of, damage to, or destruction
of assets; errors or omissions; injuries to employees, or acts of God.
The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as
of December 31, 2009. The Pool is an organization created by intergovernmental agreement to
provide property, liability, public officials liability, boiler and machinery and workers
compensation coverage to its members. Settled claims have not exceeded this coverage in any of
the past three fiscal years.
The District pays annual premiums to the Pool for liability, property and public officials liability
coverage. In the event aggregated losses incurred by the Pool exceed amounts recoverable from
reinsurance contracts and funds accumulated by the Pool, the Pool may require additional
contributions from the Pool members. Any excess funds which the Pool determines are not
needed for purposes of the Pool may be returned to the members pursuant to a distribution
formula.
NOTE 10-TAX, SPENDING AND DEBT LIMITATIONS
Article X, Section 20 of the Colorado Constitution, referred to as the Taxpayer's Bill of Rights
(TABOR) contains tax, spending, revenue and debt limitations which apply to the State of
Colorado and all local governments.
Spending and revenue limits are determined based on the prior year's Fiscal Year Spending
adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is
generally defined as expenditures plus reserve increases with certain exceptions. Revenue in
excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of
such revenue.
On May 6, 2008, a majority of the District's electors authorized the District to collect, retain and
spend any and all amounts annually from any revenue sources whatsoever without regard to any
limitations under TABOR.
14
EAST I-25 SANITATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
NOTE 10 -TAX,SPENDING AND DEBT LIMITATIONS (CONTINUED)
TABOR requires local governments to establish Emergency Reserves. These reserves must be at
least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not
allowed to use the emergency reserves to compensate for economic conditions, revenue
shortfalls, or salary or benefit increases.
The District's management believes it is in compliance with the provisions of TABOR.
However, TABOR is complex and subject to interpretation. Many of the provisions, including
the interpretation of how to calculate Fiscal Year Spending limits may require judicial
interpretation.
This information is an integral part of the accompanying financial statements.
15
SUPPLEMENTAL INFORMATION
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EAST I-25 SANITATION DISTRICT
DEBT SERVICE FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL
Year Ended December 31,2009
Variance with
Original and Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Property taxes $ 325,900 $ 325,849 $ (51)
Investment income 6,500 83 (6,417)
Total revenues 332,400 325,932 (6,468)
EXPENDITURES
Treasurer's fees 4,888 4,888 -
Bond interest 27,042 49,603 (22,561)
Bond principal 300,470 277,909 22,561
Total expenditures 332,400 332,400 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (6,468) (6,468)
OTHER FINANCING SOURCES
Transfers from other funds - 6,468 6,468
Total other financing sources - 6,468 6,468
NET CHANGE IN FUND
BALANCES - - -
FUND BALANCES-BEGINNING
OF YEAR - - -
FUND BALANCES-END OF YEAR $ - $ - $ -
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EAST I-25 SANITATION DISTRICT
SCHEDULE OF OUTSTANDING GENERAL OBLIGATION BONDED
DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2009
$504,448 General Obligation
Bonds, Series 2008
Dated November 14,2008
Interest at 9.00%
Payable December 15
Principal Due December 15
Year Principal Interest Total
2010 $ 226,539 $ 20,389 $ 246,928
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EAST I-25 SANITATION DISTRICT
SUMMARY OF ASSESSED VALUATION,MILL LEVY
AND PROPERTY TAXES COLLECTED
December 31,2009
Prior
Year Assessed
Valuation Total Mills Levied
for Current General Percent
Year Ended Year Property Opera- Debt Total Property Taxes Collected
December 31, Tax Levy tions Service Levied Collected to Levied
2009 $ 16,294,920 5.000 20.000 $ 407,375 $ 407,311 99.98%
Estimated for
year ending
December 31,
2010 $ 23,402,120 5.000 20.000 $ 585,052
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