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
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•
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)
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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
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., S\3bX
Corner .,tone •
Builders Inc. Greeley. Colorado 80632
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� �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
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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
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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
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FINANCIAL STATEMENTS
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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
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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 _
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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.
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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
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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
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