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HomeMy WebLinkAbout800492.tiff RESOLUTION RE: RESOLUTION OF INDUCEMENT FOR INDUSTRIAL REVENUE BONDS FOR THE DEVELOPMENT OF A BUILDING AND EQUIPMENT TO HOUSE A NEW CAR AUTOMOBILE DEALERSHIP WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS , the County of Weld, State of Colorado (the "County) , is authorized by the County and Municipality Development Revenue Bond Act, C .R.S . 1973 , constituting Title 29 , Article 3 , Part 1, C.R.S . 1973, as amended (the "Act") , to finance one or more pro- jects, including any land, building or other improvements and all necessary and appurtenant real or personal properties suit- able for manufacturing, industrial, commercial, or business enterprises, upon such conditions as the Governing Body of the County may beem advisable, and WHEREAS, the County is further authorized by the Act to issue its revenue bonds or other obligations for the purpose of defraying the cost of financing any such project, and WHEREAS, Steven E. Ley and Adolf H. Ley (the "User" ) have meet with the officials of the County and have advised the County of the User ' s interest in developing raw land into a fully usable commercial building to house Edward Chevrolet Company, a new car agency, within the City of Greeley, Colorado (the "Project") , subject to the willingness of the County to finance the Project by the issuance of industrial development revenue bonds or other obligations pursuant to the Act, and also subject to the City of Greeley' s consent to the construction of the Pro- ject in the City, and WHEREAS, the County has considered the User ' s proposal and has concluded that the economic benefit to the County will be substantial and it wishes to proceed with the financing of the Project. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado: Section 1. In order to induce the User to complete the Pro- ject within the City of Greeley, County of Weld, the County shall take all steps necessary or advisable to effect the issuance of industrial development revenue bonds or other obligations in a maximum aggregate principal amount not exceeding $2 ,500, 000 , or such lesser amount as shall be mutually agreed upon to finance the Project. No costs are to be borne by the County in connec- tion with this transaction. Section 2. Prior to execution of the necessary financing documents as shall be mutually agreed upon in connection with the Project and such bonds or other obligations, such documents will be subject to authorization by Resolution of the governing body pursuant to law and any rules of the County. Section 3 . The User has agreed to provide for reimbursement of all expenses incurred or to be incurred by the County related to the Project. Section 4 . Nothing contained in this Resolution shall con- stitute the debt or indebtedness of the County within the meaning of the Constitution or statutes of the State of Colorado, nor give rise to a pecuniary liability of the County or a charge against its general credit or taxing powers. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 29th day of December , A.D. , 1980 . BOARD OF COUNTY COMMISSIONERS ATTEST; % Q(. :Wris WELD COUNTY, COLORADO Weld County CYerk and Recorder el.; J/f 1. ti and Clerk to the Board C. W. Kirby, <C airman i By: , _/4 ; 4,Z,%1 ; ebtA4 cr. Litt Deputy County Clerk Leonard L. Roe,, ���Pro-Tem PPROV D AS TO F • `� ��i _1aoi Norman Carlson ounty Attorney a IDangetti LDunbar ABSENT June K. Steinmark H30492 DATE PRESENTED: December 29 , 1980 A public hearing was conducted on December 29, 1980 at 10: 00 A.M. , with the following present: BILL KIRBY CHAIRMAN LEONARD ROE COMMISSIONER NORMAN CARLSON COMMISSIONER LYDIA DUNBAR COMMISSIONER JUNE STEINMARK COMMISSIONER Also present: ACTING CLERK TO THE BOARD, KEITHA WHITE COUNTY ATTORNEY, THOMAS DAVID DIRECTOR OF FINANCE & ADMINISTRATIVE SERVICES, DONALD WARDEN The following business was transacted: I hereby certify that pursuant to a notice dated December 15, 1980 and duly published December 18, 1980 in the Johnstown Breeze a public hearing was held for the purpose of considering the application from Adolph and Steven Ley for Weld County to issue $2, 500, 000 in Industrial Development Revenue Bonds . The proposed bond issue is for acquisition of a building and equipment to house an automobile dealership. Steven Ley was present and elaborated on their application and the proposed facility. Doug Sears testifyed on the auto plaza concept. Chuck Mann, vice-president of the First National Bank of Greeley, discussed the present financial situation in the state of Colorado and why his bank suggested and supports Revenue Bonds as a means of financing this type of building. Mr. Ley stated he had sent certifyed letters to all of the car dealers in the area. There was no one present in opposition to this request. Commissioner Carlson made a motion to proceed with issuance of Industrial Development Revenue Bonds for Adolpy & Steven Ley dba Edwards ' s Chevrolet, for construction of an automobile dealership. Commissioner Dunbar seconded the motion and it carried unanimously. Mr. David presented for the Board' s signature the inducement resolution /1;lit j CHAIRMAN BOARD OF COUNTY COMMISSIONERS ATTEST: COUNTY CLERK AND RECORDER AND CLERK TO THE BO D BY: eputy DOC #80-79 Tape No. 80-111 LHR 2060 t1 i , l; \. 1. AF2L.CANT : TIME : ,C -'.q/ DOCKET# DATE : /) 7/-6) REQUEST : L 2 1 ADDRESS NAME �r ri I r • NOTICE PUBLIC HEARING INDUSTRIAL DEVELOPMEPT REVENUE BONDS FOR BUILDING AND EQUIPMENT TO HOUSE AN AUTOMOBILE DEALERSHIP Docket 80-79 NOTICE IS HEREBY GIVEN of a hearing before the Board of County Commis- sioners of Weld County, Colorado, on the 29th day of December, 1980 at the hour of 10:00 A.M. in the Weld County Commissioners hearing room, first floor, Weld County Centennial Center, 915 10th Street, Greeley, Colorado, for the purpose of considering the application from Messrs. Adolph and Steven Ley for Weld County to issue $2,500,000 in Industrial Development Revenue Bonds. The proposed bond issue is for acquisition of a building and equipment to house an automobile dealership. This procedure is in accordance with the 1967 County and Municipality Development Revenue Bond Act, Section 29-3-101 , et. seq. , CRS 1973 as amended. Copies of the application for Industrial Development Revenue Bonds are on file in the Office of the Clerk to the Board of County Commissioners located on the 3rd floor, Weld County Centennial Center, 915 10th Street, Greeley, Colorado and may be inspected during regular business hours. Following the close of the public hearing, the Board of County Commis- sioners will consider whether or not to proceed with the issuance of Industrial Development Revenue Bonds. All interested parties under the law will be afforded an opportunity to be heard at said hearing. This notice given and published by order of the Board of County Commis- sioners, Weld County, Colorado. DATED: December 15, 1980 THE BOARD OF COUNTY COMMISSIONERS BY: MARY ANN FEUERSTEIN COUNTY CLERK AND RECORDER AND CLERK TO THE BOARD OF COUNTY COMMISSIONERS BY: Keitha White, Deputy PUBLISHED: December 18, 1980 in the Johnstown Breeze AFFIDAVIT OF PUBLICATION Punic THE JOHNSTOWN BREEZE STATE OF COLORADO ) ss Icy' i` ' ii, , : COUNTY OF WELD ) -". .. 'bi-t`e. I,Clyde Briggs, do solemnly swear that I am publisher of The Johnstown Breeze; Dee that the same is a weekly newspaper is printed, in whole or in part, and published m in the County of Weld, State of Colorado, I. - and has a general circulation therein; that et 30: A said newspaper has been published yr. continuously and uninterruptedly in said G cont County of Weld for a period of more than the fifty-two consecutive weeks prior to the aj��steteevi�eee� first publication of the annexed legal notice ad trial Devoe- S e or advertisement; that said newspaper has u 'acg e' been admitted to the United States mails as an aeb a second-class matter under the provisions of ur�etsmto�.ae the Act of March 3, 1879, or any top''5t SIMMIamendments thereof, and that said 3978 a ameta�e5. ,, '" newspaper is a weekly newspaper duly tiy qualified for publishing legal notices and Ieduei ve leL+sileyrr advertisements within the meaning of the OfficeIndus' - pot laws of the State of Colorado. o That the annexed legal notice or advertise- b, n • old ment was published in the regular and ''street, O r. 936 mey yeey be wpected redo entire issue of every number of said weekly r business m,ring newspaper for the period of ../.. consecu- Falowing ale close oftaspubhc tive insertions; and that the first Thon leetheione,Hs`wditi fd" publication of said notice was in the issue of lee lteaswmee o1F In with natrlal said newspaper dated rc/, A.D. 19?'C, Development Revenues and that the last publication of said notice le t"tere eted rttesunder the was in the issue of said newspaper dated ru'nityntoebeheearrd sAZ , A.D. 19 hearing. In witness whereof I have hereunto set This notice given and p ed my hand this ._8/ day of nc.c li�yorder of me Board of County A.D. 19�� Commissioners,..Weld, County. CC0bli°radc. DATED: December 15, 1900 THE HOARD OFC �NE�TRys • Co Y:TIA YARN - Publisher BY: UERYANN RECOORID I IV THE Crib Subscribed and sworn to before me, a OPCOUNTY COMMISBIGNSRB Notary Public in and for the County of • BY:KeitSWbite, Weld..State of Colorado this .U✓.... day of Deputy 'fit{{!!e.C� A.D. 19..;t PU III me oh December 18, 1989 m the Johnstown Breeze Co Legal 80-834-Clerk to Bd.d. 1 J/ 7 Notary Public. My commission expires // / �* Mailing List Clark Olds-Cadillac, Inc. Johnson Chevrolet ; Inc. 508 8th Avenue 115 Hwy . 85 Greeley, Colorado 80631 Ault , Colorado 80610 Co ' s European Auto Bob Markley Imports 1517 2nd Avenue 3805 W. 10th Greeley, Co. 80631 Greeley, Co . 80631 Weld County Garage Wheeler The Dealer 810 10th Street 1616 2nd Avenue Greeley , Co. 80631 Greeley, Co. 80631 Centennial Lincoln Mercury Toyota 1412 8th Avenue Greeley, Colorado 80631 Purifoy Chevrolet Co . 601 Denver Ave . Fort Lupton, Co . 80621 Kennedy Chevrolet Inc. 215 4th Windsor, Co . 80550 DeBrown Chrysler Plymouth, Inc. 2563 28th Greeley, Colorado 80631 Ehrlich Datsun , Inc. 2733 8th Ave . Greeley, Co . 80631 Greeley Dodge Inc. 3501 W. 10th Greeley, Co . 80631 Eaton Ford, Inc. 10 Oak Eaton , Co . 80615 Garnsey & Wheeler Co. 1100 8th Avenue Greeley, Co . 80631 Executive Vice President Post O"ice Sox '„b� GreelF Colorado 80632 Telep. ,e 303 352-1651 December 8, 1980rii First OfCsC@e0ey Li • Board of County Commissioners County of Weld State of Colorado Gentlemen : Our customer , Messrs. Adolph and Steven Ley , have informed us of their current request for your authorization to issue Industrial Development Revenue Bonds in connection with the building of a facility for their business known as Edwards Chevrolet . They have requested that we provide a report concerning their financial position and ability to meet the expense of the proposed bond issue. The Ley family, individually, and their firm, Edwards Chev- rolet, both have been customers of our bank since the early 1940' s . During our relationship they have conducted checking, savings, and credit business with us. Our experience to date in all business matters has been professionally handled in an extremely satisfactory manner. We are very pleased to include these individuals and enterprise among our very best customers. Financial statements provided us by Steven and Adolph Ley in January and February 1980 indicate they collectively had a net worth in the low seven digit range. Edwards Chevrolet , as of October 31, 1980, operating report shows a net worth in the mid-six digit range with a debt-to-worth ratio comparable to other firms of similar nature and operations. We have reviewed a five year operating projection for Edwards Chevrolet prepared by the firm's principals. Based on these projections, it would appear that the firm would provide sufficient cash flow to properly service the proposed bond. However, such projections are subject to change due to an unfore- seen circumstances in the firm's operation, or economy in general , and we therefore cannot make an absolute statement as to the repayment potential in-as-much as those variables are unknown. The company does have a long history of profitable performance and management ability . Very Trull—Yours Sam L. L ep Executive Vice President Adolf H. Ley - Adolf Ley has been employed by Edwards Chevrolet as office manager, General Manager, and since 1940 president. Prior to that, he was employed by the Tivoli Brewery, and the Navy Gas & Oil Company in Denver as an accountant, and held various positions with banks in New York City, Porto Allgre, Brazil, and Munich, Germany. He has maintained his home in Greeley since 1940. Steven E. Ley - Steven Ley has been associated with Edwards Chevrolet Company on a full time basis since 1963. He has filled the positions of salesman, Truck Sales Manager, and since 1976, has been General Manager. He was educated in the Greeley Public School system and graduated from Greeley High School in 1959. He graduated from the University of Colorado in Boulder in 196 , and he served with the Colorado Air National Guard at Greeley. He maintains a home at Seeley's Lake, northwest of Greeley. 3.3 (e ) Edwards Chevrolet Company was founded in 1939 when it purchased the assets of the previous Chevrolet Dealer in Greeley. It has carried on its business in the same location as a retailer of new and used trucks and cars and service and parts sales since that time. In 19+5, the company added an additic,nal display area and a truck repair shop. In 1949, a service station was added and in 1953, a remotely located used cars facility was added. In 1968, a new body shop was built, but this facility was built where parking had existed and since that time on site parking has been a problem. The franchise that Edwards Chevrolet Company holds with Chevrolet Motor Division , of General Motors Corporation requires that the dealer acquire and maintain adequate facilities to adequately service the market that the agreement covers. In recent years, the growth that has taken place in Greeley and Weld County has been sufficient to make present facilities of the company less then adequate. In addition, recently announced plans by the City of Greeley for downtown redevelopment makes it unrealistic to expand in the present location. (a ) (d ) The purpose of the proposed bond issue, therefore, is to fin,,-Ince the construction of an approyirr,ately 39, 000 sq. ft. facility in the Greeley Auto Plaza that will serve as the new location of Edwards Chevrolet Company. Edwards Chevrolet Company operates as a retail automobile dealer, and while some fleet sales may be significant, on a continuing basis it would be difficult to define and identify specific major custor!^e s. (a ) (d ) • • TALLMADGE, TALLMADGE. WALLACE In HAHN. P.C. ATTORNEYS AND COUNSELORS MYLES P. TALLMADGE 11856'19711 2400 ENERGY CENTER ONE NEW MEXICO ASSOCIATES ROBERT C. TALLMADGE 717 SEVENTEENTH STREET NEGEL. MCCABE & MONTEZ. P.C. HARVEY P. WALLACE P. 0. 608 2292 DAVID J. HAHN DENVER, COLORADO 80202 SANTA E. NEW MEXICO 57501 ANDREW 5. ARMATAS • C. THOMAS BASTIEN AREA CODE: 303 WYOMING ASSOCIATE GEORGE B. RICE JAMES P. CASTBERG TELEPHONE 825-0221 ATTO RNET AT LAW JOHN W. SMITH JO ANN WEINSTEIN MR. TALLMADOE'S TELEPHONE: P. O. BOX 687 MATTHEW O. GLASSER 623-2x79 POWELL. WYOMING 82435 DONALD r. D'ANTUONO EDWARD J. WALSH November 5, 1980 The Board of County Commissioners I of Weld County, Colorado Greeley, Colorado • In Re: Proposal for Industrial Development Bonding - Steven E. Ley and Adolf H. Ley Project Gentlemen: Please be advised that we have reviewed a proposal submitted I by Lankford & Company, financial advisor to .Messrs_ Ley. - li The proposal as presently submitted, in our opinion, falls within the intent and meaning of the Economic Development Revenue Bond Act of the State of Colorado as presently in force. In addition, we have prepared a proposed Resolution of Inducement for your use as you deem fit. Very truly yours, TALLMADGE, TALLMADGE, WALLACE & HAHN, P.C.5L\L -N—?IC)ajla--L-- • Harvey . Wallace HPW/glw • gibnilcu ' ax Exempt Securities 'TA' Government Securities 1321 Seventh Street. Santa Monica. California 90401 (213) 393-4333 November 6, 1980 The Board of County Commissioners of Weld County, Colorado Greeley, Colorado Re : Proposal for Industrial Development ' Bonding - Steven E. Ley and Adolf H. Ley Project/Edwards Chevrolet Borrowing Ladies and Gentlemen : As designated underwriter of the proposed $2 ,500, 000 Industrial Development Bonding for the development of a building and equipment to house a new car dealership, please be advised that we have reviewed the proposal submitted by Lankford & Company, financial advisors to Messrs. Ley and in our opinion, subject to market conditions, the borrowing can be underwritten. It may be important to note that we were originally intro- duced by Lankford & Company to the subject borrowing during late 1979 and have remained in contact with and apprised of the develop- ment of the borrowing to date. Very truly yours,(Vete/C4, / ii, 4 CHARLES L. GUNTHER President CLG/cdp • MF MRERS NATIONAI.ASSOCIATION OF SECURITIES DEALERS& NATIONAL-MUNICIPAL SECURITIES DEALERS ASSOCIATION EDWARDS CHEVROLET $2,200, 000 Dated 12-1-80 Due 12-1 DATE PRINCIPAL INTEREST TOTAL • 12-1-81 $ $ 242,000 $ 242,000 12-1-82 45, 000 ` 242, 000 287, 000 i 12-1-83 50, 000 237, 000 287, 050 12-1-84 55, 000 231 ,550 286,550 12-1-85 60, 000 225,500 285,500 12-1-86 70, 000 218, 900 288, 900 12-1-87 75, 000 211 ,200 286,200 12-1-88 85, 000 202, 950 287, 950 12-1-89 95, 000 193,600 288,600 12-1-90 105, 000 183,150 288,150 12-1-91 115, 000 171 ,600 286,600 12-1-92 130,000 158, 950 288, 950 12-1-93 145, 000 144,650 289, 650 12-1-94 160,000 128,700 288,700 I 12-1-95 175, 000 111,100 286,100 12-1-96 . 835. 000 91.850 1 .746. 850 $2,200, 000 $2. 994,750 $5,194,750 Interest estimated at 11%. 3.3(1) CO V1\0 C-O4..O.O O.O N CO CO V1C-O el N.0 eh 0n-CANvltO\O .-1 O.OO Cl•O C*".ON O.V1 Cl Vl3 ON CO Cl N Ill el el V1 00 4- C l.--i C--O'N'O.O'O nor) O\C- In O em U O e-t .-i O r1 e-t co Vl V\4 N N N r1 ON Cl .-1 j 3 ClH'O c"1 N F)_4- N O N ell N r1 N fA O.O ON cn Cl ON'0 O\.--I (7."O V0 Cl >n ON C.-- \0 Cl r1 Cll0 no Vl O.N cn V10 el N 4 N.O.-IOOl CO V1Cl01C1\0 col Vl v10 4. . 0O C1 ed.'s L%-.O 0 .-i In.-i co V 1 11-‘0 In-1 C. 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ON j Cl Ol.O CI Ch el CON VDC%-4 .-1 NCO Q• 0 el N N•-lC1 rl Cl e-1 O.el N el el Pt 49- e-1 el o [R L4 CC (t] cil 0 H V 3 08� waz cn zw z 000 >4 H H H H H 4 Cc� O.h Ed H Ed P. q � W�7 H £ -1 at c4 0 0 W0 7 Z � oW E-4 6-1x � vlxc� tkotl V2d Oz C/2CCV2 (Wt]Pl . P4 Pi 1C0 WI-I 08 12W1ZU] WwW [(r/�l-4Cz� 4U2cil > 0W6gggaC 1-iCRR1-4Zl-40E-iI--1 OHZ ��E 0 22 W N C) 1;1 AC 0 41 4422 (74XglaC00 roc 5 410.1c4 X31 H '- W P' P., rn rn OW0Ea-I WHCR EIp2 > R4ga Ma gv2 > HHrR 4 H of3waaCC00 EH < PiZZZ0 U] weC EZZ s r1 N Ch.-1- if1.O C`...CO O.0 e-c N Cl- t1'0 nm 0000 Nri H Hririei H ei EDWARDS CHEVROLET PROJECTIONS 1980-1985 ASSUMPTIONS FOR PROJECTION PREPARED 11-17-80 Line ( 2 ) NEW CAR SALES A. 1981 Total new car sales are projected at 375 units with an average gross profet of $650. B. 1982 Total new car sales are projected at 425 units with an average gross profit of $690. C. 1983-1985 Total new car sales gross profit is projected to increase by 6% due to growth and by 5% due to an increase in cost & historical increase in price per unit. Line ( 3 ) NEW TRUCK SALES A. 1981 Total new truck sales are projected at 325 units with an average gross profit of $710. B. 1982 Total new truck sales are projected at 400 units with an average gross profit of $750. C. 1983-1985 Same as new cars, line 2, #C. Line ( 4) USED VEHICLE SALES A. 1981 Used car sales are projected at a 90% trade-in ratio of new car sales. 375 x 90% = 338 total units with wholesale being 38% of that total. Total gross for retail is $500 x 210 units. Total gross wholesale is $30 x 128 units. Used truck sales are projected at 70% df new truck sales. 325 x 70% = 228 used trucks with a 30% whole- sale ratio total gross retail is $505 x 160 units. Total gross wholesale is $40 x 40 units. B. 1982 Used car sales are projected at the same trade-in ratio (90%). 383 units with wholesale being 30%. Total gross retain is 270 units x $500. Total gross wholesale is 113 units x $30. Used truck sales trade-in ratio is 75% of 300 units with wholesale being 25%. Total gross retail is 225 units x $535. Total gross wholesale is 75 units x $40. C. 1983-1985 Total used vehicles should follow the 6% growth level of new vehicles. No projected increases in average gross profits. Line ( 5 ) LEASE & RENTAL A. 1981 Due to extraordinary losses on leases in 1980, we have projected at least a 10% increase over that amount. Projected 1980 $59,341 x 110%. B. 1982 Assume 20% increase over 1981 . C. 1983-1985 Shold follow new cars at 6% growth and 5% gross. Line ( 6 ) SERVICE SALES A. 1981 1 . Assume a flat rate of $2 on 1-1-81 (9%), and $2 on 6-30-81 (8%). We also assume no volume increases the first nine months of 1981 , and a 10% volume increase for the last three months of the year. Totals based on 1980 labor sales. ($23, 000 average 1980) 2. Body shop flat rate increase of $2 on 6-30-81 (12.5%). No volume increases. Also based on average monthly for 1980 (12,500) we assume percent of sales to gross profit (54%) will not change. 3. Sublet Same as 1980 projected ($6,250) 4. Parts Repair Orders We assume a 10% increase over projected 1980 ($50,653 ), due to price increases. B. 1982 1. Service labor sales. We assume a 15% increase in volume above the last three months of 1981 . We assume a $2 flat rate increase 1-1-82 (8.0%) . Flat rate increase of $2 6-30-82 (7%). Sales projected per month (latter portion of 1981 ) ($30,527 x 1 .15% x 1 . 08% x 53.4% x 6 = $121 ,478) ($32, 969 x 1 .15% x 1 . 07% x 53.4% x 6 = $129, 980) . -2- • 2. For body labor sales we assume a 159E volume increase. We assume no flat rate increase in 1982. ($15,481 x 115% x 54% x 12 = $115,364) - 3. Sublet 1981 projected + i$% increase .h ($6,250 x 115% d $7,190) C. 1982-1985 All service sales are projected to increase LW due to growth and 5% due to flat rate increases tor next. three years. Line ( 7 ) PARTS & ACCESSORIES • A. 1981 , t 1. Parts, accessories & other We assume the same as 1981 projected $2,208. 2. Parts & Accessory - Sales We assume a 10% increase in gross profit due to price increases. No volume increase anticipated. 9-30-80 x 110% - Internal $62,933 (1981 ) - $146,443 x 110% = $161 , 086. 3. Wholesale Compensation & stock order allowance We assume no increase in these allowances. Will use same as 1981 projected $33,572. B. 1982 1. Parts, Accessories & other Same as 1981 projected $2,208. 2. Parts & Accessory - Sales We assume a 10% increase in all parts sales due to price increase. We also assume a 25% increase in internal parts. ($62, 933 x 110 x 125 = $86,533 ) (Balance $98,153 x 110 = $107, 970) • 3. Wholesale Compensation & stock order allowance We assume 32% of total = W a 0 We assume 68% of total = S 0 A We assume a 10% increase over 1981. For W S C + 15% increase over 1981 . S 0 A - 1981 ($33,572 ) ($33,572 x 32% x 110% = $11 ,817) ($33,572 x 68% x 115% = $26,253 ) -3- Line ( 8 ) ADDITION TO INCOME A. 1981 o i 1. Finance & insurance is projected to move to of zone average 'which is $40 per new unit sold. (700 x 40 =.. $28, 000. ) 2. Vendors fees & miscellaneous should follow growth. Assume a 10% increase over projected 1980. (6, 000 x 110% _ $6,600) 3. Discounts should remain reasonaby chose to 1980 projected ($600). 4. Consumer Protection Plan - We assume that we will sell plans to 30% of all new car customers at a rate of $54 net profet per plan. (Based on 1980 inflated ) ($700 x 30% x $54 = $11,340) B. 1982 1. Finance & Insurance We are assuming further penetration into this market; so we will add $20 per unit ($60 x 825 = $49,500). 2. Vendors fees 15% increase over 1981 due to increase in sales. ($6,600 x 115% = $7,790. ) 3. Discounts - Same as 1981 projected ($600). 4. Consumer Protection Plan - We are assuming a deeper penetration in market (30%) and projecting a $6 increase in gross profit. (825 x $60 x 30% = $14,850). C. 1983-1985 We will assume a 6% growth factor. No change in penetration over 1982 projected ($72,540). Line (10) VARIABLE SELLING EXPENSES A. 1981 We assume that this expense will be $267 per new unit ($700). Based on zone average, and our 1980 average of $243 inflated by 10%. B. 1982 We assume an 8% increase over 1981 projected (108 x $267 = $288 per new unit - 82$) -4- C. 1983-1985 We assume a 6% increase due to volume and an 8% increase due to inflation. Line (11) FIXED OVERHEAD A. 1981 1. Personnel We assume a 10% increase over projected 1980 ($493, 020), and an additional $5, 000 for a new employee. ($93, 020 x 110% + $5, 000 = $547,322 ) 2. Advertising We assume $109. 09 per new unit for 1981 , ($109. 09 x 700 = $76,363 ). 3. Balance of semi-fixed costs are assumed to increase 10% over 1980 projected. ($109, 072 x 110% = $119,979) 4. Rent & Rent Equivalent We assume a $24, 000 rent payment to pay for the building & equipment for 3 months of 1981, (3 x $24,000 = $72, 000). 5. We assume rent & rent equivalent will increase 10% over the first nine months of 1980, ($24,865 x 110% = $27,352 ). We also assume that there will be no expense the last three months fo 1981 except for insurance which is projected at $2,291. 6. Fixed Costs We assume a 10% increase in fixed costs over projected 1980, ($68,797 x 110% = $75,677). B. 1982 1. Personnel 1981 projected ($542,322 ) + new employee ($20, 000) with a 10% increase due to volume and inflation. ($542,322 + $20, 000 x 110% = $618,554). 2. Advertising We assume no increase in per unit cost over 1981, ($109) . ($109 x 825 = $89,925 ) 3. Balance of semi-fixed Costs We assume a 10% increase over 1981, ($119.979 x 110% = $131 , 977 ). -5- II 4. Rent & Rent Equivalent We assume $24, 000 per month for Building & equipment, ($24, 000 x 12 = $288, 000). 5. Rent + Rent Equivalent We assume only Insurance Expenses based on 1981 projection, (Building $4,446 - Contents $1,716). 6. Fixed We assume a decrease in heat, light & power, no equipment repairs, and a decrease in other taxes, (Projected 11982 $ 68, 017). C. 1983-1985 We assume the lease payment to stay at $288, 000 and all other costs to increase by 8%. I� Line (12 ) DEDUCTIONS FROM INCOME A. 1981 1. Interest on Vehicles We assume a $900,000 average inventory at a 14% rate, ($126, 000). 2. We assume other short term borrowing to be $32, 000. 3. We assume other deductions to remain close to 1980 projected, (8,600). B. 1982 1. Interest expense on Vehicles we assume an average inventory of $990,000 at 12% interest, or $118,800. P 2. We assume other interest to remain the same on short term borrowing ($39,000). 3. We assume other deductions to increase to $8, 800 mainly in the bad debt area. C. 1983-1985 We assume that this cost will have a 6% increase due to volume, and a 5% inflation factor. Line (15 ) DEPRECIATION A. 1981-1985 We assume that equipment depreciation will remain constant. -6- Y dine (16) DEPRECIATION -LEASE & RENTAL A. 1981 - We assume a small increase in 1981 of 10% over projected 1980, less the extraordinary loss included in 1980. (Estimated. 1 980, $122,820 - loss $7,765. = ` $115,053' 3( 110%) B. 1982 • We assume a 10% increase over 1981 .. • • C. 1983-1985 We assume this will follow truck sales with a 6% growth and a 5% inflation factor. -7- ii 6V ., S\3bX Corner .,tone • Builders Inc. Greeley. Colorado 80632 '; 7 li : '1 in II 1:• 1 ; 11 1S 7'. 17 1 Y 19 .'n ?7 7.' 33 3.7 7r. :'s :no iii 31 3:' 1 0 Irk I 1 1� I 1 r r 1,430 - o 2 0 3 o o 5ci% 0- 9 n' o' n r ' — '3/'� N / i r' I,Zai - F- L xpec,d-ed ma-41,11J 19IIllois • A / / • . 1, - CO 1 ; "3 eo - A) 1 0 ( . 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Jii 1, I of I I , 1 j `} Y o r9Q , sif s a o J1 i dV � , d Dh.a li � �iPi IoY � L► QOI v1I°r4r4vP2 � r d °' 0 7 } ad � 71 �' � F � � r °0 2 0' I � � r -I- I o 7 o U ❑❑ 7S L1 ANT Ui1IKN USE or DEALL• ' ADDRESS I'U 6UX: iVVV OR OTHERS.■Y PROVIDING A COVERING f•�RIUU - -. .- cove OF THIS REPORT MOTORS Q FROM JANUARY_ is 197 CITY GREELEY COPS'DISC 1'T ANY weS PO TO THE U. TO DECEMBER 31t 197 STATE / IIP 60632 TTY FOR THE ACCURACY OP COTHE DATA HE ACNea ACY CIO _ r_ II • ASSETS I"No AMOUNT -4"0'.' LIABILITIES CNO CT.1tAMOUNT41 ' l } 1 1 CURRENT LIABILITIES ; - �� CURRENT ASSETS CASH_ 1 . 2 ACCOUNTS PAYABLE 1 On Hand 00• 5Q0 3 Trade Creditors 3® 647254 ' 15379_.4 4 Accts.Rec.Credit Balances Z20 1556 * In Bank 202 i I' .e SURE tt S Customer Deposits • 220 9%dsfr CONTRACTS IN TRANSIT 205 f 1 T6 I Ta SHOW I L sE. 6` Warranty Claims Advance. 305 T 7h�3 j •. .RiMstR TOTAL CASK AND CONTRACTS To 5 Inc 1 6t5Q6 ow RECEIVABLES( i—,— 7 __--I__ . UNITS Customer Notes—Not Due 210 i 342 , 8 NOTES PAYABLE , -- Customer Notes—Post Due 210 9 New Vehicles and Demonstrators 310 , �35J ',1: • — -r•-. ' Customer Accounts—Not Due 220 I [124113x3 10 Lease and Rental Units — 312 t Customer Accounts—Past Due • 220 I )29 t, 11 ' Other _ 314 21 Ix4U U ` , I TTjjj NOpTTES PAYABL SECUR p BY N. ' I . TOTAL CUSTOMER RECEIVABLES .1.29057 12 Memo •ctiV A1ER NOT S Ik ACET 210 I : i 340 1 1 342 6,13 s j LESS:Allowance for Doubtful Accounts. I l NET CUSTOMER RECEIVABLES :127159114 ACCRUED LIABILITIES 320174259it 1 I V• I CAR ANO TRUCK NOTES 3428 i 5 Interest 32 ._ IN ACC,. 210 S , Q CAS FNO TRUCK ACCTS. Payroll 321 450 I I V. IN ACCT. 220 S 7 481 16 Y 1.. 5 1 Accounts Payable Debit Balances 300 -sc }7 Insurance 322 !t 1 S TOTAL RECEIVABLES {LINES 14a Irt _ 15 I 1 B Taxes—Payroll 323 .F+Z8 t. I I i. INVENTORIES OM 0 0 ' 3 1 119 Taxes—Sales 324 i].Lit.J; ► I - ��gngsators Cars 14Trk . 230 92,54 5'20 Taxes—Other 325 11200: i ' * New Cars 49 231 0604•1 21 Income Taxes 327 : 15,7541 OTHER HAKES 0 • 3 I j 22 Bonuses—Employes 328 ._ L 1;!.89. t r 23 Bonuses—Owners 329 1 :A�]^>Fi{!' . � I OTHER MAKES 0 . 3I * New Trucks237. ;29 05._ 24 Pension Fund 330 _,__r__ii I 58 31 ' Truck Equipment and Trailers 238 ' 0 II 25 Other 331 i_I{ ' * Used Cars 43 240 ! 6109 26 F ll , * Memo ox,syTyr?0 27 • *lUsed Trucks 25 x3 ?���241 •128 TOTAL CURRENT LIABILITIES Tot=iENc) • * Memo OvAl,i 0 3$ 4RU2 129 I --i-----i• f '" ' et T242 8962 ,10 I i; _, Parts and Accessories I - i«1 e 4.i Tires 243 7.- 1• — — �r , i t; 244:;I Gas,Oil and Grease i ' 32 LONG TERM DEBT 334 tii : .s. y'T JLIb U I o 1 :•; Point and Body Shop Materials 245 hit 33 TOTAL (LINES 26 TO 32 INC I ®I "`- Sublet Repoirs 246 16 34(MTGES. PYBLE.—REAL ESTATE 335.1 2 , L o f 351 TOTAL LIABILITIES (LINES JT m J/) 9 , 98U o j 7 Work in Process—labor 247 6.'` Miscellaneous Assets Received in Trade 1248 36i OWNED t * Driver Training Units 6 250 4 t 2663 37 NET'WORKING CAPITAL I' 38 $ 51.7736 I • 39 ASSETS LINES 50 PLUS SI MINUS LIABILITIES LINE 33 J TOTAL INVENTORIES (LINES 20 To 31 INC.) ` ;81674 401 NET WORTH SECURITIES 260 1-12000041 CORPORATION ONLY FACTORY RECEIVABLES . 261 9898i'421 CAPITAL STOCK 360 13.5UUU DUE FROM FINANCE COMPANIES 2621 232143 RETAINED EARNINGS 370 •437h3 ' O WARRANTY CLAIMS 263 652 44 I INSURANCE COMMISSIONS REC. 264 �b f�45I PREPAID EXPENSES Taxes 2701 i 3 )Ia6 I J. Insurance 271 0%8 47 DIVIDENDS 1 375 I —14200 U) Other 274 382.I48 PROPRIETOR OR PARTNER I 1" . TOTAL PREPAID EXPENSES (LI M I INC. , 3:17 ,49 INVESTMENT'S , 380 NES 6,1., �,.1.A ;�~'� ' (LI CI TOTAL CURRENT ASSETS .1...,15 R 4: 127530050 * LEASE AND RENTAL UNITS 6 277 I 21640 •51 -H-s_I I t I L R ACCUMULATED 80 I-► ��I52j _ I ' WRITE DOWN $ - I . 1' i (FIXED ASSETS-AUTO BUSINESS ONLY 53 AMT. NEC. TO BAL. . .-�_.i. ACCT' • ACCUMULAIE-6 I 54 DRAWINGS 1390 I iI NO COSY DEPRECIATION I ---I-1 i ; 1. (AND 2eo� 3490 �— -� 3290 551 I I s .LDOS . 2e/ 13116- ' 9294' 3072 . 561 I I IIM►RYM. 351 , _^ -�-.....�.�.-,! i '14 -"Is s_.2„.(31-51 ' .--/'5093 • , 42$1 ' 811 157 I _._�.. . -_.. c Taub. • . i . Lou,'' . .2).x.....--..3S3 694' : 633 bl 1581 _.. n 'IAN . i- x-59 MONTH UNITS PROFIT OR LOSS I __ f =,. °%3s. 30}35 2890 .I---"--i45 I <___.F�; ,.�.. • SIIIYICE gas 919 1 :67 • tt51 601 Jan, 3_9 3� _.IL- - v Louts ./355 it Ace- "tee /. - 88 s 8:04 . 9 61 I Feb. 35 1,4`65; •_. ,Ir1I _ . (': I NDLD5 ��56 • ; ; 62 Mar. I 4 &HSJI I Y_.. Il ^1 �2'J 8 's; : _'f ;7 : • ' 63 April 3.A--"--27:.15 1.�._.•. 101AI,:,Tii.,..cs_A �.eltt�r II $FRYICE 2 � ,b4 May f 3 �^ 2'7!!3 ; I`4 Memo—(.NIT s: Cars Trks •• Lf \ ''OTHER ASSETS _ I65I June VII—� 13`>� �1399w s' 113 Deposits on Contracts 290; 3S 66�I—July j 5 6501 !1 LiteIn .lronee-Cash Value 291. _� II6y�1I Aug, I 4th _^_16G2 I iiittt68 Sept. 461- b'b(i 7 Noll•s and Accounts Receivable—Offlcers��293' _ r29r.... . :.6911 Oct. 72I—I-1tJUF,S A.IYonll s ID Employes ! ,_._.�-.-- i Otnl•• Non•Fronchise Assets !1'191 r - • '!0 Nov. �j 4 5 >t3 • - r r Dec. N...� 5b r rte! t . ' ., ti 7OI 101A1 tii4'+ UNI}S ). I5. - e S ti- I VI-•I•II' ,, ., ;, .. ... . I... ' ' I • I I.I•.AK' kI V. , • .I it- J •//17.5'..' 11;o4�i _ • • NO MONTH sALLs YEAR TO DATE siL._ MONTH TEAR f0 D • I — - 18 28I 4416 ,- 1 NET SALES 49 b959��, 41420376 286 1 I I " 7('+85.1413,, 7151306154 : 263671 ,282.160:, 2 GROSS PROFIT ., ft, ,.. .r+ w. j 3 u.n smn urn SVP --1- 3 r 3 VARIABLE SELLING EXPENSES • r---068. �- i 637g0 4 8 be. 15 8! 1 97477 171 5, 61 4 Compensation—Vehicle Salesmen 11 L-�•�-i4,x56 $ b6$ 4b03I- 5 Delivery Expense 13 Y>6$ • 12 1 -- t_— 4 69 82 ` 13 21 2 3e72 ,_8Cf361 _ 1 6 Policy Work—Cars and Trucks 15 _�.-- -�—� —` �� 1-2-..".' ' i ' 7 1 ! Er43 i4`:1O5 252 1115 '5 203 I 91901 . ? hI B TOTAL VARIABLE SELLING EXPENSE , � 9 9 FIXED OVERHEAD EXPENSES ' ""' -- - �— •' 144400_ 9b = ;? t?—T�✓ O1'��1 _ 5 . I 20 � 3700 . .. — '10 Salaries—Owners _ f{ • • 21 1 100 50 20C-71-123.62 243 � 27 191; ` 1 2.507 '� 1211 •11 Salaries—Supervision --'--�-- �Li3���•���?� 4ti_Ida,-� _2025.51_ 161 _ f. 22 - � � 12 Salaries—Clerical 22 � �7x 74 - 1�05:f 3� t �_---- 23 5lois“ 1114 • 6768 2 146. !14. I 131 other Salaries and Wages it g� 04 �f~ — ,I. 14 Absentee Wages—Productive Personnel 24 �� ?7:14 ' 15 Taxes—Payroll 25 I 1774 36 i 28551!42 I 27.7 _4 5. 27 I _ 1$01 30 I 330 • lie .j 1 63 1j505,16 16 Employe Benefits 1193 03 50 1 6601 . /50 03 17 Pension Fund 29 I I i I(18 • ' I 181 i 4164 47378:119 • TOTAL PERSONNEL EXPENSE 7 25274 507 295062 6139 Used Vehicle Maintenance Expense 33 Trig; 114 5724 IZ11 —" — 5456.,21 I 1316 26 15;1523• -- 24 20 +1111.. �Company Cor and Truck Expanse� ,51 - Z J3 05 4�.9 �I i p24 56:56..21 13 i2 Office Su••lies d.Ex•onus -'1139 0 I 7 294 06_ 6 _281-I?3 124, er-Supplies 52 751 7 37}72 Ig 1354,_____j_._1'654'24 . }24 •Adrerdsing 3763 O11 91 02L. '25 251 Contributions • i 6 2301 • 45 26 26 Policy Work—Parts'and Service 3,43 031 _ _ 61:12" r• t • e Services 227 76 461 `1608_ 35 5t--�_ 271 Outside 7I 01.L.,,,,,4___141 - 03 1 ..i__i225'.,2b 281 Travel and Entertainment ' + 71$6' -- I 29I Memberships,Dues and Publications I 1174 -03 6 .. 071 • 1 fir---- �'i B 129 9- ;._.- ,_ 188$ " 1p4 , _ I� , 2.,30 , 1 30 Legal and Auditing Expense 1.711 l03 _; ..,. 191 + ?;748. " 111 1,731 L31 860 1 7 i 31. Telephone and Telegraph IR � i 74 1><r?5;132 I. •321 Training Expense I 1 240 �5 `� -!-33 ®I I 1463 01I 1 • i 3 I I-. -- —�;- I = 5 411 i I 1=.��_ + 35 9722 195 102462 2!221 ' 1 199 _111334`36 36• TOTAL SEMI•FfXED EXPENSE - 1;603 C32I 16432 36 1 597 5296 37 ,•: 371 Rent •i 45 41 7 ?38 102 I -...�� 7 .13s., 7 ! 38 Amortisation—leaseholds 2525 05 1 ~'2” 39 '- 1 Repairs—Real Estate 02 5 !*9140 3o 1 249 05 2;98 •O6 1 7 1 4 40 Depreciation—Bkdgs and Improvements 3�6 t 07 i1 41 __. . — 7 255 05, 42 — 1 I Taxes—Real Estate m1 G1 G 1 734 0?1 12 .:151 ._ r 42 Insurance—Buildings and Improvements 7 rV69 6379,i9 43; Subtotal—Rent & Rent Equivalent 1 2290 46 26475 631 I 1'738'44 11420 281. 1O921�.Q4d 7 009 -- ' 44 Heat,light,Power and Water 87 I 7 -..-. 1---1 2.549 45 I i 45 Insurance—Other 88 I 1361 27 7448 • 08 1 � --'- -_2'702 461 El 315 O61 19 399 09 r 1 36 �� • 46 Taxes--Other' —"""''��•- !• _ EI 236 05 27] ' rQ _ ,— 21: 0 ' 138 47 . 471 Repairs—Equipment 411 08 5048 t ! I 481, Depreciation--Equipment • -`-'179 055 49 Equipment RentalMilll I ; _ ' 501. ! r— 1. ISlji IMINI1 so 17 6R 95 I I 7 13?? ].�`42 521': IIIIINIIINIMMIIIIIMMI'L'5,SiNc', 6033 122 611.. 9511211 II 1 ' ' "521` ` 52; TOTAL FIXED EXPENSE To 1 $�•� t4b591 1008 ' ?535 IIb �4_•, -53 TOTAL FIXED OVERHEAD ';6"iiisi 541 TOTAL EXPENSES „iNl.s . + Si , 55134.1105 -816731269� —,I 1$431 117U7�,js9' I 55 DEPARTMENTAL PROFIT OR LOSS �iJ,� 56; } _ .. } , • 56' (NO INDIRECT EEPENSE PRORATION NECESSARY) 7 57�' J 57 12221 36Ob 158+� • 58i NET INCOME FROM L & R DEPT. 59l ' 1 I 59 . '.EIATMOSPRocI tO L '+'r[5 x M,NusIIIIIIEEEE 169339 c�rws se) —316 --1399 bo ! ,60 Net Additions 8 Deductions,,*���� ¢i 617 InTO E VOLES& 1 27,256 161;940 - 1 1 61 j NET PROFIT OR LOSS ,NCOfAE TARES --DO� f'2! oR. eAL• SLACP. ,m 343 9 _.. � 62, Bonuses—Employes cR. eAL• REo I � 6}; 7oR, eAL. aLAcx 69 43].68 • _T • 1 } 631 Bonuses—Owners cR.9AL.REp j 98 1 97163 64• 641 NET PROFIT OR LOSS ELwORs INCOME i 1 G.6 5p L3 65,, 4R.eAL.BLACK ID • 1 86 :39 +45 !661 Il 65„ Income Taxes CR.eAL.R ' 51 , I 66 1 NET PROFIT OR LOSS WEN INCOME axes 6 16711 • 67DEDUCTIONS FROM INCOME —u— (bald 1 ' 6QI+ ADDITIONS TO INCOME ACC! MONTH YEAR TO DATED6 • Acct. MONTH YEAR TO DATE ACCOUNT w •I 691 ACCOUNT 1 s1 I�interest—Mortgage: 850 _ _ 7 . 1i "' `• _ Bad Debts Recovered 802 �.:— 851 —2491 7 47614.1 I ' 170 � tnlerss! •7i� •-;--��1}II ., 71 `-r i'73 t;-'. 17!9 81 di.-Doubtful Accounts 852 7 '1_ 'I 1 ' 2r r • : iq3 _ 74 !3 721 Other Income 805 ?----�•r5 �3 Repossession Losses 853 li3'-IIM'T. 1VE�:. iC0 BAL. r- .- '24I. -1--i11"6'.. .<ti _ 7 _ Other Deductions 855 1— -t-- - 'I • 75 1 D-Z 1 1963 i I�ssurance Commissions Poid�856 7 j 1 7 75' Insurance Commissions Earned_� 806' i.—. 7 r. nce Commissions Poid _ 8S7 !•_ i,--.. i • • 8 7' I610; ail! tni P11.__. _�t. 1 ;3 J_ �yia /76! Finance Income�•_ Q . ;. 7 1 7e i ` ---I roTAL 7 X200 k3222 k7 288.41 7 3502 79I TOTAL ---�- / 9-13/i7 '• m,..„.., ' r t:l : ' • ' '139 .9• 101520 1 30978 , 02;435 ; 4226 1,48&820 DEPARTMENT i ' ?.08 . 427 13 6. �T��°-_7 111- 1 • 330 1 33'687 NOTE: 4 2 -i---T •--1--- 4 ---- PENNIES SHOULD NOT BE SHOWN ' 13 _ IN MONTH AND YEAR-TO-DATE COLUMNS. 11 89 548c FOR DEPARTMENTS A, B, C, 0 AND INDIRECT I---t---- ---'--1 EXPENSE , I I� ���c i 3932 I A : 1 ; ; .;_... Z50•_,i 300001 21 ; .2'306 ; 2459 j *31 1 3a2024_1118 _ : X82.'J____1;42_ 622 9 kJ,_- I - 22 4 2731 �41• 1 5157 :77• _-:—..4:30 _. 56• ._.-.__L 33Q — 7..-, 1 z3 i ;lq 1?93• 185 25385 36 I:' 3749• ' 8 1;36.0 4- 5i . 24 `18 ^ . 377 2s 1 119 •. ' ;...4! ; 923 ; - 2495 x :32. —' A$1: : 1.-5 : ,- - 27— . ; 1 79 i 15! ; 3;681 112. i--132 -j— 9. _ _ 1925 29 's 1 2 t i I s 1 550 : i 4 •i • :48t i j — 1 i 3147 '• 3933 6801 . 8124.5 1 5`80 ' 1 6624 . 502 608• '� 6 5 ti 3 51 I 195 l 160_• j 151 1$65 i 9! j _�124_ —155 i 498! MECHANICAL 8 60 1 28 .. 3 r. 12 jt69 7• .._j_._..�s�4• _ ;..8 _ ._ 03 TECHNICIANS �— . • '8y• ' 3_ BODY SHOP 6 61 i_ j 814 _ -'-6- i. -- -+--t- - 1 1 TECHNICIANS 65 i •.... • j 9855 6 41 i 33 .. i A22" _:___1;40 i-x!04" as j j ; , 6; . :911 67 '_..� �rl ' 132�„ '• 1;891_:---ill.. 1.:.._ 41 • _ _ ► ; 38 28-4-716-1 . 6284 152�'�? :83 g 13 I 184 3• 7 I 1973 ii -- i ! 3 198 ' : - : }_.-. . :16 949 • 2r`- � I; 8 '161 j 1495 26 •00 j1 • :4361 '• 74 a1 to . 75 - 44 110 j '260 ' ; 110= 1 ;. .. ti 76 18 ; - 44 .j I , . _.i, ' • - '81 , 005 07' 1 '960 .47• I 849 : 6 S'b2_1 80 ; 30 1 • 367 450 . 4.464 '20 1 246' 1 45 540 e1 -17-7-1-1 ?16. . 2 :488 •j 8 °__ • f12 10_ ; 59 j 1681 ' _4 ' 5 , , 83 1' ` 48 x41 2887 •' ' ----�^ -- _"'.'-"';..-. . .--.- � 1584 . ,. j��� -,-- UNITS 84 6 i �xo 132 - r___ NO. OFL & R 85 I1 13 29 ' :352 ?934 j 11456 i 22 1 2768' , b2 START IN OUT r o.M 141 .. 52 j641~� 8 _ 4i�b51 87 • ;161 . 298 757 : 4893 ' `10 b0" 8 88 117 1924 611 i 7507 26 3i• ~13 �2148F t. 4 .83 26 ► V 101 ;148 b 7a 125m 89 --7-181_2 --- - 12 947 8 tit 90 t --r---. 112• 154 1491 .T�,- 1 i ; 5 r-`308 4'483 15 , r i 1 E9 2 __ . • -- i—- i........_4_____ --;---I— i -I---1. -4- t I i i 1 i • i i i i i . i i i f A 8`� 1_. - 77 10;5118 277 ' 30:178 ; 1723 I 829• . 38 5788s. 89 4 4 8 , ' 6063 : 69 373 ; 1065 : 28:383 1 900 : 93.039• ' '177" -88270 0 8 A so . II__ 0 6 :109293 1 10654 :128383 I 900 1 93039! I f 852'mm N 90� 9u 6813 4003 r 3;618 9329 3762 : 52171 Di 9f� 1 2N 66 • i sl"'t • I. LEASE AND RENTAL DEPARTMENT LNo ' 60 ACCOUNT Ho. MONTH `YrE/1R TO DATE+ ACCOUNT "cc' MONTH YEAR TO DATE'i80 i, 61 f : I i i ' INDIRECT EXPENSES 1181 INCOME i--i-.---_l�-._ —',182 Ii 62 Lease Income I400L : 8$75' 127424 Salaries-Supervision 211 Ii : j. , Salaries-Clerical i 22L �83 11 ii-4 63 Rental Income 14021: --i-- 84 i--'-- ' i' Salaries-Other 231 �' 65 Gain or loss-L&R Units 4051. 1086 1 16004 Taxes-Payroll 251 _.____. ._..._4118566 I- 'f Office Supplies&Expenses 601 I~ :� 86 'I 67 I - _ _ --r �87 1 _Advertising GSL - a t! 68 TOTAL INCOME ro i"i iti`e) 1 14741 '143'430 Telephone&Telegraph 741 1 •: _ •88 • 'l---}_= 1 j j Rent ep1 — 189 L 6Q DIRECT EXPENSES --- I90 l 7. ammissions l 11 k ;30 Heat,Light,Power&Water , _871' S _ 1 131 i i 1 1_I Insurance-Other L 881 j 91 71 fl.•Iivery Expense i --, --. -.- _ . _.. ,-- t 1 Taxes-Other 891. j ;� 921 72 Mo,nlenance&Repairs 141 ; - --- • 73 Licenses,Titles&Taxes 151 1 35•. 418 Depreciation-Equipment 91L, ; 1 Ii . - '931 ]747x_2 ;------ ' 1 4A: 74 Interest ]6L 41x2�,5 75! D•lpreciotion 171 , g7}$I�r$046 9 j 7e.,i Insurance - --- 18L f �. t�� •, - -I ,'• ..1-SphIet Units 191'1 TOTAL INDIRECT EXPENSE I ; i �L �,iO1AL PXPENSES 11lIWI rs a 57) Ii _ 'f o.... ...1; i , -.4 -r I NET INCOME ,'1lurd' a LislI i7 1 1' • ''-' JIAi uikLCT EXPENSE „ • '152Q•.` ;107424. x ..t. • ?t1LNtt, -,-. •00.5. • ,ii.,.. .. _. • + • ACCOUNT * CURRENT MONTH * • YEAR TO DATE !MI I LINE OF CARS UNITS SALES • GROSS PPLRLAIT UNITS SALES GROSS uNlr INo AND TRUCKS SOLD -- PROFIT SOLO SOLD • , L—PROFIT solo t NEW CARS-RETAIL I NEW CAR AND TRUCK DEPARTMENT f. 1 REGULAR CHE ' 4(0 . ; i 4322_ 7• 401 6 135076. i 37,33• 583 .2 MONTE CARLU am ; 4066 420. 601•' '• a: :.1_8975 • ! 1969-. 563, 3 • CHEVLE--CAMR a 4021 I 1; 20- I 1;78 44•I 6 :3.102• i 33433 499if!J• , CHEVETTE 4031 ; 11013 _ ; _1439%60,,rl 51 • NOVA 404 ' .264 ]25:- 41 • ' ' 5 • :711979 123314 4481 - VEGA 405 ; 1183• p_3.4._.37:. 3: 111423! 11511_400, _40 MONZA _ 406 ; 14,28 • 519 50• 1 • : 8[,5285 1q16......535 It' OTHER MAKES 407 1 _ ' fTOTAL NEW CARS-RETAIL I " '� j . 139!85 • t 1,3780 49 •, 2T' 29' 164 !1409841 _505.1yI. • NEW CARS-FLEET i ! i I i ' CHEVROLET ! 242 X740 34: 36 1.26391 OA 20Z'211 OTHER MAKES 412 ! ! • 1 _1:13 • 1 1 TOTAL NEW CARS-FLEET I 2422 1740 34:'1 36 . !126391 I 60471 2024 ITOTAL NEW CARS I i 164086 151520 476. 30' X40569., 4703 I 476;15 NEW TRUCKS-RETAIL ; ;_ II'i6 V'AN/SPECIAL 1 .201 • ! 2287• 2476 61• 4: ' 1238 3 ' 24908 51.9)71-- _ l 421 ... _._ � --- LIGHTDUTY . I i 7385 • 71011_50 15: !819122 i 85,1•1J : 539:18' MEDIUM DUTY 1422 I� 1 737 ' !737 73 1 : • 115 861 1 . i 17611 979 9 '• . HEAVY DUTY IMO I- i 120 OTHER MAKES - I I ;. . 2i� !ruck Equipment&TraRen • • 1425 I�� I I 1 `�I-_� 1 I I I i22j TOTA) NEw TRUCKS—RETAIL 1 • .0409 1Q22 53:'I 224 1220136:' 112763 5701 3 Hew Mocks--Fleet 1428 I .• 10041 I 62 15 •I • 31 '18748 8 1 1091 219'24\ TOTAL NEw TRUCKS .:i1.2138 I i 1 ; 1i25� I .2 :12 i 1984 , 47 261 *3921'856 135729 524'2.61 TOTAL NEW CAR&TRUCK DEPT I 5 • !2862181 ; 26367 471; 5701 281441 6 ?28x766, 496' .. ' • USED CAR AND TRUCK DEPARTMENT _ 1. . , . Used Cars-Retail 430. 11 i 4 1577• 972• 57• 23 148902 123904 529L29 ' Retond.•Cars•Relail 631 T — .--36-1—85L155.90! iI� � '� —�SiO . 11 � ` _� ' • UMCers-Wholesale ' 433 15 : 740 i 1:08 7 13 • 8585-' 7283 53 1 Adj.Used(or Inventory ' 634 I . ; � ,- - r . ---rII'2 TOTAL USED CARS t I 32 ; 4897• . 890 .; .,...176--•-` 37 . 157487• i ,3 I•' i ti I 94998 256 .. Used Trucks•Retail 435 13 I • 12 q I- - 7265' 5.' 12 132 104 62,211_514.341 I Record.•!rucks•Retail 636 """'"� 319 17 ��—1 —1732t� 143 1' Used Trucks•Wholesale 438 I 24 144,40 e i . 3227 13 1 7 ' :119289 9444 126 361 Adj.Used Truck Inventory 639. I� �� 1 �— c'--1 71 TOTAL USED TRUCKS I 3 1 9952 e • 817 22 ' . 19• • 144032 ' 54327 2773811 t 1� TOTAL USED CAR&TRUCK DEPT 69 113949. ; 1 080 24. 56 01520' 1149325 263'39iii TOTAL NEW&USED CAA A TgUGK 1I TOT .r4e'4au•.11REDCAA& 125 :42571 ; 4344 77,• 113 , 82962 !432085175840;i1f SERVICE DEPARTMENT '; 411 ! MECHANICAL CAR 265 TRUCK 154 TOTAL! 419 64,55 AR 3661 TRK 1826 TOT 5487 GII 14_2'; PROFIT ►Rat1; BODY SHOP CAR 45 TRUCK 25 TOTAL 70 am AR 592 TRK 241 TOT 833 s1iis 1i431I L Cult.Mech.Labor•Cars j 450 ' 6;79 I 3-58 .528 ! 6483 31180 4911-'44! • / Cuss.Mech.Lobo;•Trucks 451 567 304( 537 ; 4913 i 24435'497 1451! r 1 Lust.Body Lobos•cars 452 469 2'3721505 61;261 1 3[1338495 146;.! Cuss.Body Lobor-Trucks 453 229, x21- 15_29 24',17 1 12099500 4i 1., Warranty Claim Labor 454 3100 7i49�499 I 3559 i 17802500 !1 . I Inle;nol Labor 455 489 • 2TL24 459 - 4312711-18654433 ' i Sable!Repairs 456 31616 :308 815 12416309 I ?1577106 50'l Adj.Cost of lobo Sales • 657 �� i ,��1 �� 'I 5 i,l I I I 1.53'. ( New Vehicle Inspection Labor 458 I • I 1.54 mfr �:.t TOTAL SERVICE DEPARTMENT'' 30978 • ':, 1 4272461 ,302 • ,,4351 13 1712455 '551; j PARTS AND ACCESSORIES DEPARTMENT 5611 Pigs•Car R.O.•Meth. 460 7D i 23731385 '57 ' $24.3915 61;599 PIA•Truck R.O.•Meth. 461 -- 5 37 1'825340 154.554-7-16-1311305--iii PAA-Car R.o.•Body • 468A119 166 302 3955 —71-2289310 :59 1 _ f PIA•Track R.O.Body r463 402 1 168 336 1700 5 134 302 „60' • PIA-Wonanty Claims • 464,1 271 i i72 246 ' 3130 9098 237 b p i il i 1- — ! I 1.P6A•Internal 465 2:53 1 53 2 LO 12993 • 5803.194 !+ z I i FAA•Counter-Relod 466 6323 1 -X88 297 1 8 875 7 126131294 63 r PIA•Wholesale 467 1146 1 60_5141 :1,0672 `19739'162 1164`.1 wangle Ports Comp. 66'8 i 1T5 :2><:: IG24G1 7.._j 6§,, Stack Order Allowance • • 669 5 l� 1 1 _ X808. x.166; ' I I i I I 1 i 1 ( -_i .16 7'. . Di Adj.•PdA Inventor 675 > - j Toms PARTS 6 ACCESSORIES ' 1 3826 I 12289,3-21 . .443387 1441'31'6 f '• •. riles __ am' / 1 l77. !10 5136_ 1 `2 541 1;315107 . Gas.Oii and Grease } 490 • X1;31 012!3118 1590 —3106223 7 i Pam,I lady Shop Molts. 491 1129 1 1 1 55 --1-1167 679 49 72 • 1 Miscellaneous 492 56 I --Aj4{� I t • 73 IIi -. 1_,. • I /4 I IulAl VIM I, Tr L.. r. �1 5100112 •; ,I -... !RAJ /.. 111t I ! 40071714711119 ' i 45433 /61 eA,. rolAL l CA Dr I•r. Rows i i 4f2-61 1r/66P� 02 1481B2C�I 11456209297 I�II77 itj T1�141. St AVICE a 744 DEPTS.....,recLUl,,. ; '7�;2LA '>'IIn At:i l.10 :-•PO, , r .1 a•ie,77 t,az” •li yn!•A EDWARDS CHEVROLET COMPANY FINANCIAL REPORT March 31, 1980 A Hto t T&K = J % O) PC/81.1C ;SP i 1 EDWARDS CHEVROLET COMPANY TABLE OF CONTENTS Page REPORT OF CERTIFIED PUBLIC ACCOUNTANTS ON THE FINANCIAL STATEMENTS 1 FINANCIAL STATEMENTS Balance Sheet 2 Statement of Income and Retained Earnings 3 Statement of Changes in Financial Position 4 Notes to Financial Statements 5-7 A \ 40, HT$K �_ lOpVBLIC PP(' A N HT&K Q ANDERSON, HUNTER, THOMTE & KURTZ Certified Public Accountants F�A'8 L I C t"'" To the Board of Directors Edwards Chevrolet Company We have examined the accompanying balance sheet of Edwards Chevrolet Company as of March 31, 1980, and the related state- ment of income and retained earnings and changes in financial position for the three months then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements mentioned above present fairly the financial position of Edwards Chevrolet Com- pany at March 31, 1980, and the results of its operations and changes in its financial position for the three months then ended, in conformity with generally accepted accounting principles ap- plied on a basis consistent with the preceding year. fiard;../ane 1.7C1 ANDERSON, HUNTER, THOMTE & KURTZ May 30, 1980 Greeley, Colorado t 40 it Ilk FINANCIAL STATEMENTS A in % H11K Q 410 k AVBLIC PGGJ= �o O EDWARDS CHEVROLET COMPANY Balance Sheet March 31 , 1980 ASSETS CURRENT ASSETS Cash $ 500 Dealer reserve accounts (NOTE 5) 7, 935 — Accounts receivable Trade (net of allowance for doubtful accounts $5 , 552) 245 , 018 Factory 89, 558 Stockholders (NOTE 4) 4, 500 Refundable income taxes 27, 121 Inventories (NOTE 2) New cars, trucks and demonstrators (NOTE 3) 989, 277 Used cars and trucks 109, 769 Parts and accessories 242 , 758 Prepaid expenses 22 , 765 Total current assets 1, 739, 201 PROPERTY AND EQUIPMENT Land 32 , 901 Buildings and improvements 131 , 677 Machinery and equipment 48 , 172 Furniture and equipment 72 , 180 Company vehicles 10 , 051 Driver training vehicles 36, 565 Leased vehicles (NOTE 3) 745 , 227 Leasehold improvements 2 , 536 Less accumulated depreciation ( 352 , 713) Total property and equipment 726, 596 OTHER ASSETS (NOTE 5) 24 , 017 Total $2 ,489 , 814 The Notes to Financial Statements are an integral part of this statement . _. LIABILITIES AND STOCKHOLDERS ' EQUITY CURRENT LIABILITIES Bank overdraft $ 43 , 156 Notes payable (NOTE 3) 1, 149, 123 Accounts payable Trade 126 , 838 Warranty claims and service adjustments 7 , 761 Others 14 , 500 Payroll and sales tax payable 34 , 004 Accrued liabilities Salaries 8, 660 Property taxes 8, 148 Interest 19, 951 Pension fund 6 , 685 Total current liabilities 1 ,418 , 826 _ LONG-TERM DEBT Notes payable (NOTE 3) 190, 215 Note payable--stockholder (NOTE 4) 185 , 063 Total long-term debt 375 , 278 COMMITMENTS AND CONTINGENCIES (NOTE 5) - Total liabilities 1 , 794 , 104 STOCKHOLDERS ' EQUITY Common capital stock, par value $100 Authorized, 2 , 000 shares ; issued and outstanding; 1, 350 shares 135 , 000 Retained earnings 560, 710 Total stockholders' equity 695 , 710 Total $2 , 489, 814 Page 2 pp►►�� Vii: EDWARDS CHEVROLET COMPANY Statement of Income and Retained Earnings Three Months Ended March 31 , 1980 Amount Percent SALES $1 , 708 , 960 100. 00 Cost of goods sold 1 , 484 , 196 86. 85 Gross profit 224 , 764 13 . 15 OTHER INCOME Lease and rental income 56, 366 3. 30 Miscellaneous 5, 845 . 34 Total income 286 , 975 16 . 79 - EXPENSES Salaries Owners ' 18 , 216 1 . 07 Supervision 36 , 182 2 . 12 Clerical 13 , 374 . 78 Other 31 , 316 1. 83 Absentee 2 , 511 . 15 Salesmen' s compensation 28 , 078 1. 64 Payroll taxes 14 , 225 . 83 Employee benefits 3, 101 . 18 Pension fund (NOTE 6) 2 , 779 . 16 Delivery expense 2, 976 . 17 Policy work 2, 432 . 14 Company vehicles 7 , 550 .44 Supplies 5 , 960 . 35 Advertising 14 , 050 . 82 Contributions 255 . 02 Outside services 2 , 300 . 14 Travel and entertainment 623 . 04 Dues and subscriptions 1, 689 . 10 Legal and accounting 172 . 01 Telephone 2 , 268 . 13 Training 625 . 04 Rent 5,932 . 35 Repairs 1, 654 . 10 Utilities 9, 099 . 53 Insurance 6, 550 . 38 Taxes 2 , 318 . 14 Depreciation 36 , 143 2 . 11 Interest 44 , 516 2 . 60 Miscellaneous 3, 204 . 19 Total expenses 300, 098 17. 56 NET LOSS ( 13, 123) ( . 77) RETAINED EARNINGS Beginning of period 573, 833 End of period $ 560 , 710 The Notes to Financial Statements are an integral part of this statement . Page 3 AK EDWARDS CHEVROLET COMPANY Statement of Changes in Financial Position Three Months Ended March 31 , 1980 RESOURCES PROVIDED BY: Net loss ($ 13 , 123) Add expense not requiring outlay of working capital in the period Depreciation 36 , 143 From operations 23, 020 Proceeds from long-term borrowing 62 , 698 Total resources provided 85 , 718 RESOURCES APPLIED TO: Purchase of property and equipment 68, 139 Current maturities and retirement of long-term debt 24 , 328 Total resources applied 92, 467 DECREASE IN WORKING CAPITAL ($ 6 , 749) CHANGES IN WORKING CAPITAL Increase (decrease) in: Cash ($ 10, 712) Dealer reserve accounts 2 , 015 Accounts receivable 31 ,461 Inventories 176 , 989 Prepaid expenses 4 , 836 Decrease ( increase) in: Notes payable ( 186 , 279) Accounts payable ( 49 , 719) Payroll and sales tax payable ( 14 , 503) Accrued liabilities 39 , 163 Decrease in working capital ($ 6 , 749) The Notes to Financial Statements are an integral part of this statement . Page 4 ^" K 'wau EDWARDS CHEVROLET COMPANY Notes to Financial Statements NOTE 1--Summary of significant accounting policies The significant accounting policies generally followed by the Company in the presentation of its financial position , changes in financial position and results of operations are summarized below. A. Inventories--inventories are stated at lower of cost or market . Cost has been determined under the last-in , first- out (LIFO) method with respect to new cars, new trucks and demonstrators, which represents 74% of the total inventory . The remainder of the inventories , which include used ve- hicles , parts and accessories and other sundry items , are determined on the first-in , first-out (FIFO) method. B. Property and equipment--property and equipment are reported at historical cost less depreciation . The Company provides for depreciation and amortization on methods and at rates designed to amortize the cost over the asset ' s estimated useful life. Description Life Principal Method Buildings and improvements 10-40 years Accelerated Fixtures and equipment 3-7 years Straight line Vehicles 3-7 years Straight line C. Income taxes--the Company follows the flow-through method of accounting for the investment tax credit . NOTE 2--Inventories The following inventories at March 31, 1980 , were used in the computation of cost of sales : New cars $256 , 850 New trucks 632 , 815 Demonstrators 99, 612 Sub-total $ 989,277 Used cars 60, 370 Used trucks 49 , 399 Sub-total 109, 769 Parts and accessories 242 , 758 Total inventory $1 , 341 , 804 At March 31, 1980, the new cars , new trucks and demonstrators were valued at $989, 277 using the last-in, first-out (LIFO) method. If the first-in, first-out (FIFO) method of inventory accounting had been used by the Company, the inventory costs for these units would have been $166 , 045 higher than reported. NOTE 3--Notes payable Notes payable , which bear interest at ap- proximately the New York prime rate plus 1% are collateralized by floor plan ve- hicles having a cost of $1, 155 , 322. In- terest rate at March 31, 1980 was 19 1/4% $1 , 048 , 069IA- 9 _ iK Page 5 '° .. . o EDWARDS CHEVROLET COMPANY Notes to Financial Statements NOTE 3--Notes payable (continued) 17 3/4% unsecured note is due June, 1980 $ 45 , 000 13% to 14 1/4% notes due monthly over 2 to 3 year terms are col- lateralized by leased vehicles having a net depreciated cost of $247, 920 at March 31, 1980 246 , 269 Total 1 , 339, 338 Less current maturities 1 , 149 , 123 Long-term debt $ 190, 215 NOTE 4--Transactions with related parties During 1979, the Company advanced $4 , 500 to two stockholders for down payment on land which is intended to be leased to the Company in future years. This amount is reflected in the balance sheet as an account receivable--stockholders . The Company has a note payable to a major stockholder amounting to $185, 063 which is due on demand and bears interest equiva- lent to the GMAC going rate which was 19 1/4% as of March 31 , 1980. No principal payments are intended to be made on this note within the next year. NOTE 5--Commitments and contingencies The Company has entered into an agreement for architectural services for a proposed new facility having an estimated cost of $1 , 200, 000. Provided adequate financing can be obtained, such facility will be constructed and owned by certain stock- holders and leased to the Company. The commitment for basic architectural services in the agreement is 4 1/2% of the proj- ect costs plus additional services as required. As of March 31, 1980, the Company has incurred $24, 017 for such services , which is reflected in the balance sheet as other assets . The Company is contingently liable for loans made to customers with recourse by financing institutions aggregating $267, 440. However, management does not believe the Company will incur any significant liability in excess of the dealers reserve accounts maintained by these institutions. NOTE 6--Retirement plans The Company has established a profit-sharing plan to cover all employees meeting minimum age and hour requirements. The Com- pany ' s contribution to the plan is discretionary but may not exceed 15% of the annual aggregate compensation paid to all participants . The Company has established a defined contribution pension plan to cover employees who elect to participate and meet minimum age and hour requirements. Each participant must contribute 2% of Page 6 ^ EDWARDS CHEVROLET COMPANY Notes to Financial Statements NOTE 6--Retirement plans ( continued) annual compensation with the option to voluntarily contribute up to 10% of the annual compensation . The Company will contri- bute 2% of the participant ' s annual compensation . Vesting is accumulated at the rate of 10% a year. For the three months ended March 31 , 1980 , the Company ' s contribution to the plan amounted to $2 , 779. Page 7 AHTh J OFFICIAL STATEMENT In the opinion of Bond Counsel, interest on the Bonds is exempt from taxation by the United States of America under statutes, regulations, and rulings existing on the date of such opinion, except possibly for interest on any Bond for any period during which such Bond is held by a person who is a"substantial user" of the improvements financed with the proceeds of the Bonds or a "related person" as those terms are used in Section 103(b) of the Internal Revenue Code of 1954, as amended.Also, in the opinion of Bond Counsel, such interest is exempt under present state income tax laws. $865,000 City of Greeley, Colorado Local Improvement District No. 420 Local Improvement Bonds Series November 1, 1980 (The "Bonds") Dated: November 1, 1980 Due: November 1, 1991 Principal and semiannual interest (first payable November 1, 1981,and semiannually thereafter on each May 1 and November 1) are payable at the office of the City Treasurer of Greeley, Colorado. The Bonds are issuable in the form of negotiable coupon bonds in the denomination of $1,000, not registerable as to principal or interest. The Bonds are subject to redemption prior to maturity in regular numerical order on any interest payment date for the principal amount of the Bonds to be redeemed plus accrued interest, with no premium, at the option of the City, to the extent the City has funds on hand from the payment of assessments on land within Local Improvement District No. 420 (the "District"). See "The Bonds—Prior Redemption." The table below sets forth the coupon rates and prices of the Bonds, grouped in accordance with the City's estimate of the dates on which the Bonds will be redeemed. The City is making no representations as to the accuracy of the estimated redemption dates. Estimated "A" Estimated "A" Redemption Coupon Redemption Coupon Bond Nos. Date Rate Price* Bond Nos. Date Rate Price" 1-100 1982 7.50% 100% 441-525 1987 8.55% 100% 101-185 1983 7.75% 100% 526-610 1988 8.75% 100% 186-270 1984 7.75% 100% 611-695 1989 8.90% 100% 271-355 1985 8.15% 100% 696-770 1990 8.90% 100% 356-440 1986 8.35% 100% 771-865 1991 8.90% 100% In addition to the above "A" coupon interest rates, supplemental "B" coupons have been detached by the Underwriter and are not a part of this offering. The Bonds are special obligations of the City payable solely from a special bond fund consisting of all moneys collected by the City from the special assessments to be levied against the assessable land in the District. See "The Bonds—Source of Payment" and "The Bonds—Assessments." It is expected that the Bonds will be available for delivery by the City on or about December 4, 1980. E. F. Hutton & Company Inc. October 22, 1980 No dealer, salesman, or other person has been authorized to give any information or to make any representation with respect to the Bonds which is not contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as having been authorized by the City or the Underwriter. The information in this Official Statement is subject to change and neither the delivery of the Official Statement nor any sale made after any such delivery shall, under any circumstances, create any implication that there has been no change since the date of this Official Statement. This Official Statement shall not con- stitute an offer to sell or the solicitation of any offer to buy, and there shall be no sale of any of the Bonds, by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation, or sale. TABLE OF CONTENTS page 1 INTRODUCTION SOURCE AND APPLICATION OF FUNDS 2 2 THE BONDS Description 2 Source of Payment 2 Prior Redemption 3 Assessments 3 4 THE PROJECT 4 General The Contractor 5 The Property 5 Ownership and Development of the Property 6 Appraisal of the Property 6 7 THE GREELEY ECONOMY Population 7 Employment 8 ( i) Table of Contents. Cont'd Page Economic and Demographic Information . . 8 Major Employers 9 Education 10 Transportation 11 TAX EXEMPTION 11 LEGAL MATTERS 12 FINANCIAL CONSULTANT 12 ADDITIONAL INFORMATION 12 ( ii) OFFICIAL STATEMENT $865 , 000 City of Greeley, Colorado, Local Improvement District No. 420 LOCAL IMPROVEMENT BONDS Series November 1 , 1980 INTRODUCTION This Official Statement, including the cover page, is fur- nished in connection with the offering by the City of Greeley, Colorado ( the "City" ) , of $865 , 000 Local Improvement District No. 420 , Local Improvement Bonds , Series November 1 , 1980 (the "Bonds") . Local Improvement District No. 420 (the "District") was created by the City on August 19 , 1980 . The area covered by the District consists of approximately 140 acres of unimproved land located in the south central area of the City. The proceeds from the sale of the Bonds are to be used to pay the costs of designing and constructing streets, curbs, gutters, pavement, water and sewer lines, and a sewer pumping station on the land in the District (the "Project") . The City let bids on the Project and has awarded the bid to the low bidder contingent upon the sale of the Bonds. See "The Project. " The Bonds are to be issued under an ordinance to be finally adopted on November 4 , 1980 ( the "Bond Ordinance") . The Bonds are payable solely from a special bond fund consisting only of moneys collected (including principal, interest, and penalties, if any) by the City from the special assessments to be levied against the asses- sable land in the District. The Bonds shall never constitute or give rise to a general obligation of the City. See "The Bonds--Source of Payment. " SOURCE AND APPLICATION OF FUNDS The sole source of funds to pay the expected costs of the Project is the $865 ,000 proceeds from the sale of the Bonds. The following table sets forth the expected expenses incurred in connec- tion with the issuance and sale of the Bonds : Issuance Costs $ 23 ,145 Capitalized Interest (1) 82 , 000 Construction and Engineering Costs 749 . 855 Total $865 .000 (1) The $82 ,000 capitalized interest and the moneys in the Construction Fund created by the Ordinance will be invested. It is estimated that the $82 ,000 and the earn- ings on such investments will be sufficient to pay all interest coming due on the Bonds through December 15, 1981 , based upon the construction schedule for the Project and an assumed rate of return of 10 .5% . THE BONDS Description The Bonds are being issued as coupon bonds in the denomina- tion of $1 , 000 each, and mature on November 1, 1991. The Bonds are dated November 1 , 1980 , and bear interest at the rates set forth on the cover page of this Official Statement. Interest on the Bonds is payable on November 1 , 1981 , and semiannually on each May 1 and November ]. thereafter. Principal of and interest on the Bonds are payable at the office of the City Treasurer of Greeley, Colorado, as paying agent. Source of Payment The Bonds are special obligations of the City payable as to both principal and interest solely from a special bond fund ( the "Bond Fund") , consisting only of all moneys (principal, interest, and penalties, if any) collected by the City from the special assessments to be levied against the assessable land in the District. The Bonds shall never give rise to or constitute a general obligation of the City. See "Legal Matters. " -2- The Ordinance provides that deficiencies in the Bond Fund may not be satisfied out of any source except the collection of assessments on the land within the District. Accordingly, the hold- ers of the Bonds should not expect to receive any benefit from provi- sions in the Greeley City Charter relating to the satisfaction of deficiencies in any special or local improvement district funds with special surplus and deficiency funds or relating to the payment of the costs of the improvements with tax levies on the City at large or with general fund transfers. For a discussion of the procedures applicable to the col- lection of assessments, see "The Bonds--Assessments. " prior Redemption The Bonds are subject to prior redemption at the City' s option in regular numerical order on any interest payment date at a price equal to the principal amount of the Bonds plus accrued inter- est, to the extent funds are available in the Bond Fund from moneys collected by the City from the special assessments to be levied against the assessable property within the District and from funds remaining after completion of the Project. The City will give 30 days ' notice of such redemption by advertisement in a local newspaper . Assessments After the completion of the Project and a hearing on the proposed assessments , the City will adopt an ordinance ( the "Assessment Ordinance") which will provide for the assessment of all land within the District in amounts sufficient to pay the principal of and interest on the Bonds . All of the owners of the land within the District have agreed to the formula to be used in determining the assessments. The Assessment Ordinance will contain, among other things, a statement of the costs of the Project, the names of the apparent owners of the land within the District, and the amount being assessed against each lot or parcel within the District. The City Clerk will deliver the assessment roll , duly certified, to the City Treasurer for collection. Payment may be made to the City Treasurer at any time within 60 days after the final publication of the Assessment Ordinance. Any owner not paying within the 60-day period is deemed to have elected to pay the assessment in installments. The Assessment Ordinance will permit the owners to pay their respective assessments in 10 equal annual installments beginning on October 1, 1982 , and on the first day of October in each year thereafter through -3- October 1 , 1991 , and to pay interest on the first day of April and October in each year thereafter, at a rate not less than the highest rate of interest borne by any Bond. Failure by an owner to pay any installment of principal or interest when due causes the entire unpaid principal to become due and collectible immediately, plus a collection charge of 10% of the amount due. The owner of any prop- erty not in default as to any installment of principal or interest may prepay the assessment in full by paying the entire unpaid princi- pal plus the interest accruing as of the next following interest pay- ment date. The City Treasurer collects assessments from those owners who elect to pay in installments. If an owner defaults in the pay- ment of any installment of principal or interest when due, the County Treasurer becomes responsible for collection of the assessment. The County Treasurer is required to advertise and sell the applicable property and to apply the sale proceeds to the payment of the unpaid assessments on the property. The County Treasurer is required to advertise for the sale and conduct the sale in the same manner as provided by general law for sales of real estate in default of pay- ment of general property taxes. The City has various additional enforcement remedies, including the right to foreclose on the prop- erty as to which an assessment is in default. The proceeds of any sale are to be credited to the Bond Fund. All assessments constitute, from the effective date of the Assessment Ordinance , a perpetual lien in the amounts assessed against the real property described in the Assessment Ordinance and have priority over all other liens except prior tax or assessment liens and, possibly, liens imposed by the State of Colorado or any of its political subdivisions and liens occurring as a result of secu- rity interests in real property granted under loans made by the United States or its agencies. As of the date of this Official Statement, there were no assessment, tax, or federal loan liens on any land within the District. THE PROJECT General The Project consists of the design and construction of streets, curbs, gutters, pavement, water and sewer lines, and a sewer pumping station on the land within the District. Some of the major components of the Project include 14 , 400 feet of curb and gutter, 38,200 feet of pavement, 7 ,954 feet of eight-inch sewer line, and 1,120 feet of copper pipe. -4- The City retained Norton, Underwood and Lamb, engineering associates , Greeley , Colorado , to design the improvements constituting the Project and to be the Project Manager. Norton, Underwood and Lamb has been in existence since April 1976 and employs 12 people, including five licensed engineers and two licensed surveyors. The firm specializes in municipal engineering and utili- ties system design. The three principals of the firm together have over 60 years of experience as consulting engineers. The Contractor The City let bids for the Project on a competitive basis and awarded the bid to Flatiron Paving Company ( the "Contractor") , contingent upon the sale of the Bonds. The City's contract with the Contractor provides for all of the work on the Project, under the specifications prepared by the City, to be completed at a price of $665 ,173 . The contract provides for a 10% retainage and requires the Contractor to deliver both a performance bond and a payment bond (to insure payment to all subcontractors and suppliers of material) in the amount of the contractor ' s bid. The Contractor is entitled to additional payment to the extent the City requests changes from the specifications provided to the Contractor, although changes in proj- ects of this nature typically are not substantial . The Contractor has been in existence since about 1950 and employs about 900 people with offices in Greeley, Boulder, Longmont, Fort Collins, and Loveland. During 1979 , the Contractor completed approximately $50 , 000 , 000 of contracts for paving, buildings, bridges, and other general commercial work. The Property The Property consists of approximately 140 acres located in the south central area of Greeley. See the map of the City. It is bounded by the bypass for U.S. Highway 34 to the north, 29th Street on the south, 35th Avenue on the west, and a line about one-fourth of a mile west of 23rd Avenue on the east. The Property is adjacent to the Greeley Mall, which contains approximately 500,000 square feet of retail space. One small retail sales center in the same general area as the Property is proposed and another retail sales center in the area is under construction. The Property is zoned C-4 (Service Business) , which permits its development for the broadest categories of commercial use in the City. -5- Ownership and Development of the Property The Property is owned by several individuals and entities. Tracts A, B, C, D, and E (see the site map) are owned by the L. E. G. Partnership, a general partnership comprised of Steven E. Ley, Robert L. Eaton, and W. Herrick Garnsey. Tract G is owned by Steven E. Ley and Adolph A. Ley. Tract H is owned by Weld County Garage, Inc . , a corporation whose sole shareholder is Robert L. Eaton. Tract I is owned by W. Herrick Garnsey. Tract F is owned by an individual whose residence is located on the tract. Mr. Steven Ley and Mr. Adolph Ley intend to develop Tract G into a Chevrolet distributorship. The Leys presently operate a Chevrolet distributorship in downtown Greeley and expect to move the distributorship to the new facilities on Tract G sometime in the spring of 1981 . Weld County Garage, Inc. , presently operates a Buick/Pontiac/GMC dealership in downtown Greeley and expects to move its dealership to new facilities to be constructed on Tract H. Mr. Garnsey expects to move his Ford dealership, presently located in downtown Greeley, to new facilities on Tract I by the spring of 1981 . The L. E. G. Partnership expects to sell Tracts A, B, C, D, and E over the next five years. The individual who owns Tract F is not known to have any plans for development of that property. Because the plans for development and sale of the Property are only preliminary, any potential purchaser of the Bonds should look primarily to the security afforded by the assessment liens on the Property in its present state as undeveloped land and should not look to the financial status of the present owners of the Property or to their plans for development and sale of the Property. See "The Bonds--Assessments" and "The Project--Appraisal of the Property. " Appraisal of the Property The City retained Bradford M. Beeler M.A.I. with Appraisal Services--Real Estate, Inc., of Boulder, Colorado (the "Appraiser") , to conduct an appraisal of the Property. Mr. Beeler has been in the business of appraising since 1959. The Appraiser employs six people, including four appraisers. In its appraisal dated September 12 , 1980 , the Appraiser concluded that the "market value" of the Property, assuming comple- tion of the Project, was $2 ,700 ,000 . The term "market value" for purposes of the appraisal is defined as : The highest price in terms of money which a property will bring in a competitive and open market under all conditions -6- requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Because the Property currently is unimproved, the Appraiser utilized the "market data" approach rather than a cost or income approach in appraising the Property; under the market data approach, the appraiser reviews price data for recent comparable sales of land in the area. The Appraiser estimated that the total sales price of the Property, if all parcels were sold on the date of the Appraisal, would be approximately $5 ,616,000 . Using that figure, the Appraiser assumed sales expenses of 10% , promotional expenses of 5% , and a profit to the owners of 25% . For purposes of estimating "market value, " the Appraiser assumed that the Property would be sold over a five-year period, with 30% of the Property being sold in each of the first two years, 20% in the third year, and 10% in each of the fourth and fifth years. The assumed net proceeds from the sales were dis- counted to present value using a discount factor of 12% to arrive at the market value of $2 ,703 ,000 . THE GREELEY ECONOMY population The table below presents information regarding the popula- tion, median age, and number of households in Greeley. The informa- tion is based upon the 1970 United States Census, with estimates for years subsequent to 1970 provided by Sales and Marketing Management's Survey of Buying Power. The preliminary 1980 Census indicates a pop- ulation of 52 ,000 for Greeley, but the City of Greeley has contested the 1980 Census figures, which it believes are too low, and final figures will not be available until resolution of the matter. Total Median Number of Year Population Age BouseholdQ 1979 50 ,100 25 .0 17 ,300 1978 49 , 900 24 .9 17 ,200 1977 48,200 24.7 16 ,400 1976 47 , 400 24 .5 16 ,000 1975 46 ,900 24.7 15 ,600 -7- Employment The year-to-date (January through July 1980) average unem- ployment rate for Greeley was 6 .6% , for Colorado was 5.1%, and for the U.S. was 7 .0% . The unemployment rate in Greeley rose above the Colorado level after the closing of the Monfort of Colorado meat packing plant in March 1980 . Except for the period following the closing of the Monfort plant, unemployment in Greeley has consis- tently remained below the Colorado and national averages. The following table, derived from information supplied by the Colorado Division of Employment, presents information on annual average employment in Greeley, including a comparison of unemployment levels in Colorado and the entire United States, for the years indicated : Greeley Colorado U. S. Employ- Unemploy- Labor Unemploy- Unemploy- Unemploy- Year ment ment Force ment Rate ment Rate ment Rate 1979 25 , 403 1 , 265 26,668 4 .7% 4 .8% 5 .8% 1978 24 ,071 1,302 25,373 5 .1 5 .5 6 .0 1977 24 ,197 1 ,453 25,650 5 .7 6 .2 7 .0 1976 24 ,340 1 ,261 25,601 4 .9 5 .9 7 .7 1975 22 ,799 1 ,471 24,270 6 .1 6 .9 8 . 5 Economic and Demographic Information The following table provides certain economic and demo- graphic data for Greeley ( or other areas indicated) : Assessed Building Retail Postal Telephone Year Valuation (1) Permits (2) Sales (4) Receipts (6) Subscribers (13) 1980 $176 ,999 ,780 $17 ,983 ,085 (3) $ --- (5) 3 ,407 ,481 (7) 25 ,269 (14) 1979 166 ,325 ,200 36 ,939 ,817 266 ,091 3 ,613 ,554 (8) 29 ,627 (15) 1978 153 ,614 ,780 35 ,002 ,294 243 ,081 3 ,149 ,316 (9) 27 ,951 1977 141,071 ,230 27 ,723 ,431 214 ,515 2 , 902 ,131 (10) 26 ,158 1976 133 ,050 ,190 14 ,518,356 210 ,568 2 ,492 ,064 25 ,036 (11) 1975 93 ,150 ,640 16 ,488 , 413 184 , 533 2 ,197 ,133 (12) 24 ,011 (1) Source : Weld County Assessor. (2) Source : Greeley Building Inspector . (3) This figure is year-to-date as of August 31 , 1980 . -8- (4) Source : Sales and Marketing Management, Survey of Buying Power. (5) Not available. (6) Source: Greeley Main Post Office. (7) For October 6 , 1979 , to September 9 , 1980; estimated additional $282 ,000 to $285 ,000 to fiscal year end. (8) Fiscal year ended October 5 , 1979. (9) Fiscal year ended October 6 , 1978. (10 ) Fiscal year end 6/5/77 (July, August, and September, 1977 , amounts are not reflected in any of these figures) . (11) Source : Annual Financial Report for the fiscal year ended December 31 , 1979 , prepared by the Department of Finance of Greeley. (12) Fiscal year end June 30 , 1975 . (13) Source : Mountain Bell Telephone Company, figures as of January 1 of following year in each case . (14) This figure represents telephone subscribers on September 6, 1980 , for Greeley Main only but does not include new student connections or the 3 ,600 subscribers in the Parkview area. (15) In January 1980 , Parkview post office was split from Greeley Main to service the area west of town. Of the total subscrib- ers on January 1 , 1980 , 26 ,092 were attributed to Greeley Main and 3 ,535 to Parkview. Major Employers The following is a brief description of certain of the major employers in the Greeley area. University of Northern Colorado employs about 1 ,200 per- sons, including faculty and staff, and is currently the largest single employer within the City limits. Weld County School District No. 6 employs about 1,200 per- sons, including faculty and staff, of which approximately 80% to 90% reside in Greeley. Weld County General Hospital , with about 950 employees, is a general acute care hospital with 306 beds. State Farm Insurance Company employs approximately 580 per- sons in its Greeley office. Monfort of Colorado has approximately 800 employees in its portions food plant in Greeley and its processing complex just north of the City . Although Monfort closed its meat packing plant in -9- Greeley in March 1980 , it retains feedlots, corporate headquarters, and its own transportation facilities in the area. Kodak of Colorado is a major employer in Weld County located about 13 miles outside of Greeley. The Company employs approximtely 3 , 000 persons, of which it estimates 21% reside in Greeley. Kodak of Colorado manufactures film, x-rays, and litho- graphic plates and is the only plant in the United States besides the Company' s main Eastman Kodak plant in Rochester, New York, that manu- factures those products. Mountain Bell Telephone Company, an affiliate of the world- wide Bell system, employs approximately 350 persons in its Greeley District, which services all of Greeley and outlying areas on the south to Fort Lupton and on the east to Julesburg. Great Western Sugar Company has 68 year-round employees and approximately 350 employees during the harvest season, which runs from October through February, at its refining plant in Greeley. It purchases sugar beets from local growers and produces sugar and by-products of pulp and molasses, which are used for livestock feed. Bayly Corporation employs approximately 250 persons at its manufacturing plant in Greeley, which manufactures apparel, primarily blue jeans. Hewlett Packard Company recently purchased a 580-acre site west of Greeley and plans to move part of its Fort Collins operation to that site in 1982 . The Greeley facility will manufacture hardware for HP computers. Hewlett Packard anticipates having approximately 2 ,000 employees at the Greeley facility when it becomes fully oper- ational, but economic conditions will determine when that may be and may cause that estimate to be revised. Education Weld County School District 6 , which includes all of Greeley and Evans and portions of outlying areas, has a total student population of 10 , 200 , and consists of 11 elementary schools (Kindergarten through Grade 5) with approximately 6 ,000 students ; 4 middle schools (Grades 6 and 7) with approximatey 500 students; 2 junior high schools (Grades 8 and 9) with approximately 500 students; 2 senior high schools (Grades 10 through 12) with approximately 2,000 students; and 1 special school for severely handicapped children. Aims Community College is a 2-year college which offers vocational and academic programs, and offers the Associate in Arts and Sciences degree for lower-division undergraduate work . -10- Enrollment for the 1979-1980 school year was 9 ,985 , which includes part-time students. The University of Northern Colorado' s central campus is within walking distance from downtown Greeley. It enrolls more than 11 ,000 students a year, and offers Bachelor to Doctorate degrees in a variety of subjects, but its principal emphasis is on preparing stu- dents for careers in education. UNC has a second campus located just south of the City and a third campus located in the mountains near Estes Park. Transportation Greeley is readily accessible by motor vehicle, rail, and air. Major U. S. highways serving the Greeley and Weld County area include U.S. 34 and U.S. 85 . West of the City is Interstate Highway 25 , which also connects with I-80 to the north and with I-70 to the south. Greeley is located 53 miles north of Denver and is served by Stapleton International Airport with 16 scheduled air carriers and four runways. Weld County Municipal Airport aircraft d e es rportslocated three miles from downtown Greeley, serving pr companies. Greeley is also served by Greyhound bus and AMTRAK passen- ger train, as well as Union Pacific Railroad and the Colorado and Southern Railroad. In addition, The Bus, Greeley' s City bus line, provides transportation within Greeley, transporting an estimated 1 ,300 to 1 ,500 passengers per day. Greeley has plans for immediate expansion of The Bus service, so that it would service a larger area of the City. TAX EXEMPTION In the opinion of Sherman & Howard, Denver , Colorado, as Bond Counsel, interest on the Bonds is exempt from taxation by the United States of America under statutes, regulations, and rulings existing on the date of such opinion, except possibly for interest on any Bond for any period during which such Bond is held by a person who is a "substantial user" of the improvements financed with the proceeds of the Bonds or a "related person" as those terms are used in Section 103 (b) of the Internal Revenue Code of 1954, as amended. Also, in the opinion of Bond Counsel, such interest is exempt from taxation by the State of Colorado under present state income tax laws. -11- LEGAL MATTERS The validity of the Bonds is to be approved by Sherman & Howard, Denver, Colorado, as Bond Counsel, whose approving opinion on such matters will be printed on the Bonds. The opinion will include a statement that the obligations of the City are subject to the rea- sonable exercise in the future by the State of Colorado and its gov- ernmental bodies of the police power inherent in the sovereignty of the State and to the exercise by the United States of America of the powers delegated to it by the federal Constitution. Sherman & Howard has also been engaged to advise the City in connection with the preparation of this Official Statement. FINANCIAL CONSULTANT Under an agreement with the City , Dain Bosworth Incorporated, 950 Seventeenth Street, Denver, Colorado, is assisting the City in structuring this issue and making the public sale of the Bonds. Dain Bosworth Incorporated expects to bid for the purchase of the Bonds from the City. ADDITIONAL INFORMATION The summaries of certain provisions of the Bond Ordinance, the Bonds, the Charter, federal and Colorado laws, and other sources referred to in this Official Statement do not purport to be complete, and reference is made to such sources for a complete statement of their provisions. Copies of the Bond Ordinance are available for review by making a request to Dain Bosworth Incorporated, 950 Seventeenth Street , Denver , Colorado 80202 ( telephone 303/534-1177) , or by making a request to the City, Civic Center Complex, Greeley, Colorado 80631 , attention: Mr. Leonard A. Wiest, Director of Finance, ex officio City Treasurer. So far as any state- ments made in this Official Statement involve matters of opinion or estimates, whether or not expressly stated as such, they are not to be construed as representations of facts. -12- The execution of this Official Statement and its delivery have been duly authorized by the City. CITY OF GREELEY, COLORADO By: -/ George W. Hall /- Mayor By: -/ Leonard A. Wiest /- Director of Finance ex officio City Treasurer -13- GREELEY - EVANS COLORADO :.�` ,71 7, l N a c crzFI �° , ' . .\-1 f e ., I,>' >UT .Y F Fy rails °r. �`yp� �A� Fyyn 2 .15 \e a. .J.� s ay F I a �q•}W1 'd itS' 1s/ M e. ., �. T f e. `I f el Ia �hin' ° � T��c " h •sr? P1 Pi 79" t I t { l lu s Bwr 34 relimIZz o Ef I�i� >,r�_^'I i' "'' �TSF, Jrt:-_ I I 1 I i M1�JJ ,, \\i �� 9 i` ,' e �▪ e}Y-F a w ui.�w. • -' I zr - L ti▪ i^"��'v\ s'c7. F-7l rII Ft t 'I I I� IiL. ' i'i �" „ lN. s y 1, \%I s __^s,_ I I is �� ,. r ' w7 ."` f Y :a N0PI I y tLIt' • Y RA I5 _5 55 1Y{ q � t. • i. 5 U S34 BTP4 • '" ' BE „ �l SPECIAL 3=K ,_J_ ` ,.. _ 5_ IMPROVEMENT „° ° -, -EV " S DISTRICT 420 �� „a l� I. 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