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Home My WebLink About890043.tiff RESOLUTION RE: AUTHORIZING THE ISSUANCE OF THE COUNTY ' S TAX ANTICIPATION NOTES, SERIES 1989A, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $4 ,000 ,000; PROVIDING FOR THE DATE, INTEREST RATE, MATURITY DATE AND SOURCE AND MANNER OF PAYMENT OF THE NOTES; AUTHORIZING THE PROPER OFFICERS OF THE COUNTY TO EXECUTE AND DELIVER THE NOTES AND OTHER DOCUMENTS; PRESCRIBING THE FORM OF THE NOTES; AND REPEALING INCONSISTENT RESOLUTIONS 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, Weld County, Colorado, (the County) , anticipates receiving ad valorem taxes on real or personal property (Taxes) and other revenues during the fiscal year ending December 31 , 1989 (the Current Fiscal Year) , which will be credited to the general fund (the General Fund) of the County, and WHEREAS , the County has estimated the anticipated Taxes and other revenues to be credited to the General Fund and the budgeted expenditures to be made from the General Fund in the Current Fiscal Year and has concluded that the Taxes will not be received in time to pay the County' s projected budgeted expenses in the Current Fiscal Year, and WHEREAS, the County is authorized by the provisions of the Tax Anticipation Note Act, Part 1 of Article 15 of Title 29 , C.R.S. , as amended (the Act) , to issue tax anticipation notes by resolution (this Resolution) in an amount not to exceed fifty percent (50%) of all Taxes estimated by the County to be received in the Current Fiscal Year, and WHEREAS, Boettcher & Company, Inc. , Denver, Colorado (the Purchaser) , has offered to purchase such notes on terms favorable to the County. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, as follows: Section 1 . The Board of County Commissioners (the Board) hereby determines that the Taxes will not be received in time to pay the County' s projected budgeted expenses of the General Fund in the Current Fiscal Year. For the purpose of paying such expenses the County hereby authorizes the issuance of its negotiable registered Tax Anticipation Notes , Series 1989A, in an aggregate principal amount not to exceed $4 , 000 , 000 (the Notes) , payable from Taxes , investment proceeds on Taxes, and proceeds of � 890043 Page 2 RE: 1989 TAX ANTICIPATION NOTES the Notes to the extent not required for the payment of duly budgeted current expenses of the General Fund, received by the County in the Current Fiscal Year and credited to the General Fund after the issuance of the Notes. The Board hereby determines that the aggregate principal amount of the Notes and all other tax anticipation notes issued by the County during the Current Fiscal Year does not exceed fifty percent (50%) of the Taxes estimated to be received by the County in the Current Fiscal Year as shown by the County' s budget for the Current Fiscal Year. Section 2 . The Notes shall be in such denominations as may be determined by the Finance Director or his designee, shall be registered as to principal and interest without coupons , shall be dated the date of their delivery but in no event earlier than January 1 , 1989 , shall bear interest payable at maturity at such rate as may be determined by the Finance Director or his designee not to exceed seven and fifty hundredths percent (7 .50%) per annum, shall not be subject to redemption in whole or in part at any time prior to their maturity date, shall mature on such date as may be determined by the Finance Director or his designee but not later than December 31 , 1989 , shall be payable as to principal and interest upon presentation and surrender thereof at the office of the County Clerk, as paying agent, from the source and in the manner specified and be otherwise in substantially the form prescribed in Section 4 hereof. Section 3 . The notes shall be executed by the Chairman of the Board, shall bear the seal of the County, and shall be attested by the County Clerk. Said signatures and seals may be affixed manually or by the use of facsimiles in accordance with the Uniform Facsimile Signature of Public Officials Act, Part 1 of Article 55 of Title 11 , C.R.S. , as amended. The Chairman of the Board and the County Clerk are hereby authorized and directed to date, execute and deliver the Notes, and the appropriate officers of the County are hereby authorized and directed to date, execute and deliver such other documents , including, without limitation, closing documents and certificates, and to take such other action as may be necessary or appropriate in order to effectuate the issuance and sale of the Notes, all in accordance with this Resolution and the Act. Section 4 . The Notes and the registration panels appearing thereon shall be in substantially the following forms: 890043 Page 3 RE : 1989 TAX ANTICIPATION NOTES [Form of Note] UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF WELD TAX ANTICIPATION NOTE SERIES 1989A No. R- $ Weld County, Colorado (the County) , for value received, hereby promises to pay to the registered owner hereof as shown on the registration panel attached hereto from ad valorem taxes on real and personal property, investment proceeds on such taxes, and proceeds on the notes of this issue to the extent not required for the payment of duly budgeted current expenses, received by the County in the fiscal year ending December 31 , 1989 , and credited to the general fund after the issuance hereof, on December 29 , 1989 , the principal sum of Dollars ($ ) together with interest thereon from the date hereof to the maturity date hereof at the rate of and hundredths percent ( %) per annum, based upon the actual number of days elapsed in a month of 30 days andyear of 360 days , said interest in the amount of Dollars and Cents ($ ) being payable at maturity. This Note is issued by the Board of County Commissioners of the County, on behalf of the County, in accordance with Part 1 of Article 15 of Title 29 , C.R.S. , as amended (the Act) , and pursuant to a Resolution (the Resolution) of the Board of County Commissioners of the County duly adopted prior to the issuance hereof in order to pay duly budgeted current expenses of the General Fund of the County. Reference is hereby made to the Act and the Resolution for a complete statement of the rights and limitations of rights of the registered owner of this Note, to all of which the registered owner hereof by acceptance of this Note assents. This Note is not subject to redemption in whole or in part at any time prior to its maturity date. The principal of and interest on this Note are payable upon presentation and surrender hereof at the office of the County Clerk, as paying agent, either by check or draft mailed to the registered owner hereof or by wire transfer to such bank or other depository as the registered owner hereof shall designate. This Note is transferable only upon the books of the County by the County Clerk, as transfer agent. 890043 Page 4 RE: 1989 TAX ANTICIPATION NOTES It is hereby certified, recited and warranted that all acts, conditions and things required to be done, occur or be performed precedent to and in the issuance of this Note have been done, have occurred and have been performed in regular and due form and manner as required by law and that the obligations represented by this Note do not contravene any constitutional or statutory limitation of the State of Colorado. IN TESTIMONY WHEREOF the County has caused this Note to be executed in its name with the manual signature of the Chairman of the Board of County Commissioners , to be sealed with the seal of the County, and to be attested with the manual signature of the County Clerk, all as of the day of January, 1989 . WELD COUNTY, COLORADO (COUNTY) ( SEAL ) By: (Manual Signature) Chairman of the Board of County Commissioners ATTEST: (Manual Signature) County Clerk 890043 Page 5 RE: 1989 TAX ANTICIPATION NOTES [Form of Registration Panel] This note is registered with the County Clerk, as registrar, in the name of the owner listed below, and the principal of and interest on this Note are payable only to such owner. Date of Name, Address and Tax I.D. Signature of Registration Number of Registered Owner Registrar January , 1989 [End of Form of Registration Panel] 890043 Page 6 RE: 1989 TAX ANTICIPATION NOTES Section 5 . Upon their execution and prior to their delivery the Notes shall be registered for the purpose of payment of principal and interest with the County Clerk, as registrar. Thereafter, the Notes shall be transferable only upon the registration books of the County by the County Clerk, as transfer agent. The fact of registration shall be noted on the registration panels appearing on the Notes. The County shall be entitled to treat the persons or entities listed on its registration books as the sole owners of the Notes for all purposes, including the right to receive payment of the principal of and interest on the Notes. Section 6 . The Notes may be sold at private sale to the Purchaser at, above, or below the aggregate principal amount thereof as may be determined by the Finance Director or his designee, and the Board hereby determines such action to be in the public interest. Section 7 . The proceeds of the Notes shall be deposited in a restricted account within the General Fund and shall be used solely for the payment of duly budgeted current expenses of the General Fund when and to the extent that other moneys on deposit in the General Fund are insufficient therefor. Any portion of said proceeds may be temporarily invested pending such use in securities or investments which are lawful investments for the County. All Taxes levied for General Fund purposes (except Taxes collected for retirement of existing debt) , investment proceeds on such Taxes , and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses of the General Fund, received by the County in the Current Fiscal Year after the issuance of the Notes , shall be deposited in a separate restricted account within the General Fund to be known as the "Tax Anticipation Notes, Series 1989A, Principal and Interest Redemption Account" (the Note Account) until such time as the moneys therein are sufficient in the aggregate to pay when due the principal of and interest on the Notes. All moneys in the Note Account not in excess of the amount required to pay when due the principal of and interest on the Notes and all securities in which the same may be invested from time to time are hereby pledged to secure the payment of the principal of and interest on the Notes and shall be used for no other purpose. This pledge shall be valid and binding from and after the first delivery of the Notes, and the moneys so pledged shall immediately be subject to the lien of said pledge without any physical delivery thereof, any filing, or further act. 890043 Page 7 RE: 1989 TAX ANTICIPATION NOTES Section 8 . The County shall make no investment or other use of the proceeds of the Notes which, if such investment or other use had been reasonably expected on the date of issue of the Notes, would have caused the Notes to be "arbitrage bonds" within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended (the Code) , and the regulations thereunder and shall comply with the requirements of said Section and regulations throughout the term of the Notes . The County hereby designates the Notes as "qualified tax-exempt obligations" under Section 265 (b) of the Code. Section 9 . All acts, orders, Resolutions or parts thereof taken by the County and in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed so as to revive any act, order Resolution or part thereof heretofore repealed. Section 10 . This Resolution is, and shall constitute, a legislative measure of the County, and after the Notes are issued, sold and outstanding, this Resolution shall constitute a contract between the County and the registered owners of the Notes and shall be and remain irrepealable until the Notes and the interest thereon shall have been fully paid, satisfied and discharged. Section 11 . If any paragraph, clause or provision of this Resolution is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining paragraphs , clauses or provisions hereof, the intention being that the various paragraphs, clauses or provisions hereof are severable. Section 12. This Resolution shall take effect immediately upon its adoption . 890043 Page 8 RE: 1989 TAX ANTICIPATION NOTES The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 11th day of January, A.D. , 1989 . BOARD OF COUNTY COMMISSIONERS ATTEST: ita, ;0 WELD COUNTY, COLORADO �� J Weld County Jerk and Recorder Lrc and Clerk to the Board C.W. Kirby, Ch irman r -- �Ilor-- BY: � c<�X,�/' 6gue ne io nson, Pro-Tem Deputy County erk EXCUSED APPROVED AS TO FORM: Gene R. Brantner O7 George Ken fly County Attorney .K-71 890043 $3,500,000 TAX ANTICIPATION NOTE ISSUE PROPOSALS UNDERWRITER TOTAL FEES Boettcher & Company $ 5,250 United Bank of Denver 6,825 Kirchner Moore & Company and Affiliated Banks of Colorado 7,000 Coughlin & Company, Inc. 10,500 Hanifen, Imhoff, Inc. 14,685 `-' - 2, • • • WELD COUNTY, COLORADO TAX ANTICIPATION NOTES SERIES 1989A DATED JANUARY 25, 1989 - S3,950,000 • • • • • • WELD COUNTY, COLORADO • WELD COUNTY, COLORADO TAX ANTICIPATION NOTES SERIES 1989A DATED JANUARY 25, 1989 - $3,950, 000 Closing Index 1 . Note Resolution 2 . Specimen Note 3 . County Certificate and Receipt 4. County Certificate Regarding Federal Tax Matters 5. Form 8038-G and Evidence of Mailing 6. Underwriter' s Receipt 7 . Opinion of Bond Counsel 8. Preliminary Offering Circular 9 . Offering Circular 10. Letter re Responsibility for Disclosure Complete transcripts of the closing documents will be furnished to the following parties: Weld County, Colorado (2 copies) County Attorney Ballard, Spahr, Andrews & Ingersoll Boettcher & Company, Inc. RESOLUTION RE: AUTHORIZING THE ISSUANCE OF THE COUNTY'S TAX ANTICIPATION NOTES, SERIES 1989A, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $4 ,000 , 000; PROVIDING FOR THE DATE, INTEREST RATE, MATURITY DATE AND SOURCE AND MANNER OF PAYMENT OF THE NOTES; AUTHORIZING THE PROPER OFFICERS OF THE COUNTY TO EXECUTE AND DELIVER THE NOTES AND OTHER DOCUMENTS; PRESCRIBING THE FORM OF THE NOTES; AND REPEALING INCONSISTENT RESOLUTIONS 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, Weld County, Colorado, (the County) , anticipates receiving ad valorem taxes on real or personal property (Taxes) and other revenues during the fiscal year ending December 31 , 1989 (the Current Fiscal Year) , which will be credited to the general fund (the General Fund) of the County, and WHEREAS , the County has estimated the anticipated Taxes and ether revenues to be credited to the General Fund and the budgeted expenditures to be made from the General Fund in the Current Fiscal Year and has concluded that the Taxes will not be received in time to pay the County' s projected budgeted expenses in the Current Fiscal Year, and WHEREAS, the County is authorized by the provisions of the Tax Anticipation Note Act, Part 1 of Article 15 of Title 29 , C.R.S. , as amended (the Act) , to issue tax anticipation notes by resolution (this Resolution) in an amount not to exceed fifty percent (50%) of all Taxes estimated by the County to be received in the Current Fiscal Year, and WHEREAS, Boettcher & Company, Inc. , Denver, Colorado (the Purchaser) , has offered to purchase such notes on terms favorable to the County. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, as follows : Section 1 . The Board of County Commissioners (the Board) hereby determines that the Taxes will not be received in time to pay the County' s projected budgeted expenses of the General Fund in the Current Fiscal Year. For the purpose of paying such expenses the County hereby authorizes the issuance of its negotiable registered Tax Anticipation Notes , Series 1989A, in an aggregate principal amount not to exceed $4 ,000 , 000 (the Notes) , payable from Taxes , investment proceeds on Taxes , and proceeds of 890043 Page 2 RE: 1989 TAX ANTICIPATION NOTES the Notes to the extent not required for the payment of duly budgeted current expenses of the General Fund, received by the County in the Current Fiscal Year and credited to the General Fund after the issuance of the Notes. The Board hereby determines that the aggregate principal amount of the Notes and all other tax anticipation notes issued by the County during the Current Fiscal Year does not exceed fifty percent (50%) of the Taxes estimated to be received by the County in the Current Fiscal Year as shown by the County' s budget for the Current Fiscal Year. Section 2 . The Notes shall be in such denominations as may be determined by the Finance Director or his designee, shall be registered as to principal and interest without coupons , shall be dated the date of their delivery but in no event earlier than January 1 , 1989 , shall bear interest payable at maturity at such rate as may be determined by the Finance Director or his designee not to exceed seven and fifty hundredths percent (7 .50%) per annum, shall not be subject to redemption in whole or in part at any time prior to their maturity date, shall mature on such date as may be determined by the Finance Director or his designee but not later than December 31 , 1989 , shall be payable as to principal and interest upon presentation and surrender thereof at the office of the County Clerk, as paying agent, from the source and in the manner specified and be otherwise in substantially the form prescribed in Section 4 hereof. Section 3 . The notes shall be executed by the Chairman of the Board, shall bear the seal of the County, and shall be attested by the County Clerk. Said signatures and seals may be affixed manually or by the use of facsimiles in accordance with the Uniform Facsimile Signature of Public Officials Act, Part 1 of Article 55 of Title 11 , C.R.S. , as amended. The Chairman of the Board and the County Clerk are hereby authorized and directed to date , execute and deliver the Notes , and the appropriate officers of the County are hereby authorized and directed to date, execute and deliver such other documents , including, without limitation, closing documents and certificates, and to take such other action as may be necessary or appropriate in order to effectuate the issuance and sale of the Notes, all in accordance with this Resolution and the Act. Section 4 . The Notes and the registration panels appearing thereon shall be in substantially the following forms : 890043 Page 3 RE: 1989 TAX ANTICIPATION NOTES [Form of Note] UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF WELD TAX ANTICIPATION NOTE SERIES 1989A No. R- $ Weld County, Colorado (the County) , for value received, hereby promises to pay to the registered owner hereof as shown on the registration panel attached hereto from ad valorem taxes on real and personal property, investment proceeds on such taxes , and proceeds on the notes of this issue to the extent not required for the payment of duly budgeted current expenses, received by the County in the fiscal year ending December 31 , 1989 , and credited to the general fund after the issuance hereof, on December 29 , 1989 , the principal sum of Dollars ($ ) together with interest thereon from the date hereof to the maturity date hereof at the rate of and hundredths percent ( %) per annum, based upon the actual number of days elapsed in a month of 30 days and a year of 360 days, said interest in the amount of Dollars and Cents ($ ) being payable at maturity. This Note is issued by the Board of County Commissioners of the County, on behalf of the County, in accordance with Part 1 of Article 15 of Title 29 , C.R.S. , as amended (the Act) , and pursuant to a Resolution (the Resolution) of the Board of County Commissioners of the County duly adopted prior to the issuance hereof in order to pay duly budgeted current expenses of the General Fund of the County. Reference is hereby made to the Act and the Resolution for a complete statement of the rights and limitations of rights of the registered owner of this Note, to all of which the registered owner hereof by acceptance of this Note assents. This Note is not subject to redemption in whole or in part at any time prior to its maturity date. The principal of and interest on this Note are payable upon presentation and surrender hereof at the office of the County Clerk, as paying agent, either by check or draft mailed to the registered owner hereof or by wire transfer to such bank or other depository as the registered owner hereof shall designate . This Note is transferable only upon the books of the County by the County Clerk, as transfer agent. 890043 Page 4 RE: 1989 TAX ANTICIPATION NOTES It is hereby certified, recited and warranted that all acts, conditions and things required to be done, occur or be performed precedent to and in the issuance of this Note have been done, have occurred and have been performed in regular and due form and manner as required by law and that the obligations represented by this Note do not contravene any constitutional or statutory limitation of the State of Colorado. IN TESTIMONY WHEREOF the County has caused this Note to be executed in its name with the manual signature of the Chairman of the Board of County Commissioners , to be sealed with the seal of the County, and to be attested with the manual signature of the County Clerk, all as of the day of January, 1989 . WELD COUNTY, COLORADO (COUNTY) ( SEAL ) By: (Manual Signature) Chairman of the Board of County Commissioners ATTEST: (Manual Signature) County Clerk 890043 Page 5 RE: 1989 TAX ANTICIPATION NOTES [Form of Registration Panel] This note is registered with the County Clerk, as registrar, in the name of the owner listed below, and the principal of and interest on this Note are payable only to such owner. Date of Name, Address and Tax I .D. Signature of Registration Number of Registered Owner Registrar January _, 1989 [End of Form of Registration Panel] 890043 Page 6 RE: 1989 TAX ANTICIPATION NOTES Section 5 . Upon their execution and prior to their delivery the Notes shall be registered for the purpose of payment of principal and interest with the County Clerk, as registrar. Thereafter, the Notes shall be transferable only upon the registration books of the County by the County Clerk, as transfer agent. The fact of registration shall be noted on the registration panels appearing on the Notes. The County shall be entitled to treat the persons or entities listed on its registration books as the sole owners of the Notes for all purposes, including the right to receive payment of the principal of and interest on the Notes. Section 6 . The Notes may be sold at private sale to the Purchaser at, above, or below the aggregate principal amount thereof as may be determined by the Finance Director or his designee, and the Board hereby determines such action to be in the public interest. Section 7 . The proceeds of the Notes shall be deposited in a restricted account within the General Fund and shall be used solely for the payment of duly budgeted current expenses of the General Fund when and to the extent that other moneys on deposit in the General Fund are insufficient therefor. Any portion of said proceeds may be temporarily invested pending such use in securities or investments which are lawful investments for the County. All Taxes levied for General Fund purposes (except Taxes collected for retirement of existing debt) , investment proceeds on such Taxes , and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses of the General Fund, received by the County in the Current Fiscal Year after the issuance of the Notes , shall be deposited in a separate restricted account within the General Fund to be known as the "Tax Anticipation Notes, Series 1989A, Principal and Interest Redemption Account" (the Note Account) until such time as the moneys therein are sufficient in the aggregate to pay when due the principal of and interest on the Notes. All moneys in the Note Account not in excess of the amount required to pay when due the principal of and interest on the Notes and all securities in which the same may he invested from time to time are hereby pledged to secure the payment of the principal of and interest on the Notes and shall be used for no other purpose. This pledge shall be valid and binding from and after the first delivery of the Notes, and the moneys so pledged shall immediately be subject to the lien of said pledge without any physical delivery thereof, any filing, or further act. 890043 Page 7 RE: 1989 TAX ANTICIPATION NOTES Section 8 . The County shall make no investment or other use of the proceeds of the Notes which, if such investment or other use had been reasonably expected on the date of issue of the Notes, would have caused the Notes to be "arbitrage bonds" within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended (the Code) , and the regulations thereunder and shall comply with the requirements of said Section and regulations throughout the term of the Notes . The County hereby designates the Notes as "qualified tax-exempt obligations" under Section 265 (b) of the Code. Section 9 . All acts, orders , Resolutions or parts thereof taken by the County and in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed so as to revive any act, order Resolution or part thereof heretofore repealed. Section 10 . This Resolution is , and shall constitute, a legislative measure of the County, and after the Notes are issued, sold and outstanding, this Resolution shall constitute a contract between the County and the registered owners of the Notes and shall be and remain irrepealable until the Notes and the interest thereon shall have been fully paid, satisfied and discharged. Section 11 . If any paragraph , clause or provision of this Resolution is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining paragraphs , clauses or provisions hereof, the intention being that the various paragraphs, clauses . or provisions hereof are severable. Section 12 . This Resolution shall take effect immediately upon its adoption . 890043 Page 8 RE: 1989 TAX ANTICIPATION NOTES The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 11th day of January, A.D. , 1989 . '' L ,�� Q BOARD OF COUNTY COMMISSIONERS ATTEST: IF tc. J WELD COUNTY, COLORADO Weld County Jerk and Recorder 1,242Z--c Gryi-' and Clerk to the Board C.W. Kirby, Ch irman 1vr fr wm o, BY. 6-- cc J c _uel e J son, Pro-Tem eputy County lerk EXCUSED APPROVED AS TO FORM: Gene R. Brantner 4-1 CMCit_-:---62 George Kenn ' County Attorney G0-14\i.4?/ • 890043 SPEC1 - UNITED STATES OF AMER STATE OF COLORADO COUNTY OF WELD TAX ANTICIPATION NOTE SERIES 1989A No. R- 1 CUSIP: 949221 AA 3 $5, 000 Weld County, Colorado (the County) , for value received, hereby promises to pay to the registered owner hereof as shown on the registration panel attached hereto from ad valorem taxes on real and personal property, investment proceeds on such taxes, and proceeds of the notes of this issue to the extent not required for the payment of duly budgeted current expenses, received by the County in the fiscal year ending December 31, 1989, and credited to the general .fund after the issuance hereof, on December 29, 1989, the principal sum of Five Thousand Dollars ($5, 000) together with interest thereon from the date hereof to the maturity date hereof at the rate of six and sixty hundredths percent (6. 60%) per annum, based upon the actual number of days elapsed in a month of 30 days and a year of 360 days, said interest in the amount of Three Hundred Six Dollars and Seventeen Cents ($306. 17) being payable at maturity. This Note is issued by the Board of County Commissioners of the County, on behalf of the County, in accordance with part 1 of article 15 of title 29, Colorado Revised Statutes, as amended (the Act) , and pursuant to a Resolution (the Resolution) of the Board of County Commissioners of the County duly adopted prior to the issuance hereof in order to pay duly budgeted current expenses of the general fund of the County. Reference is hereby made to the Act and the Resolution for a complete statement of the rights and limitations of rights of the registered owner of this Note, to all of which the registered owner hereof by acceptance of this Note assents. This Note is not subject to redemption in whole or in part at any time prior to its maturity date. The principal of and interest on this Note are payable upon presentation and surrender hereof at the office of the County Clerk, as paying agent, either by check or draft mailed to the registered owner hereof or by wire transfer to such bank or other depository as the registered owner hereof shall designate. This Note is transferable only upon the books of the County by the County Clerk, as transfer agent. It is hereby certified, recited and warranted that all acts, conditions and things required to be done, occur or be performed precedent to and in the issuance of this Note have been done, have occurred and have been performed in regular and due form and manner as required by law and that the obligations represented by this Note do not contravene any constitutional or statutory limitation of the State of Colorado. IN TESTIMONY WHEREOF the County has caused this Note to be executed in its name with the manual signature of the Chairman of the Board of County Commissioners, to be sealed with the seal of the County, and to be attested with the manual signature of the County Clerk, all as of the 25th day of January, 1989. WELD ' COLORADO (COUNTY) m' j ( SEAL ) '-'- +�" rm •" t Board of Commissioners ATTEST: Co nt Clerk 2 This Note is registered with the County Clerk, as registrar, in the name of the owner listed below, and the principal of and interest on this Note are payable only to such owner. Date of Name, Address and x D. Signature of Registration Number of Regis r Registrar January 25, 1989 Kemper Cle i � ,, n , 411 East 4 t "y Milwa - 02 Tax 0 '1. w • 4s. 3 COUNTY CERTIFICATE AND RECEIPT The undersigned hereby certify that: They are the duly elected or appointed, qualified, sworn and acting Chairman of the Board of County Commissioners and County Clerk, respectively, of the County. The County is a political subdivision of the State of Colorado and a body politic and corporate duly organized and validly existing under the Constitution and laws of the State of Colorado and its Home Rule Charter, and there is no litigation pending or, to the best of their knowledge, threatened, relating in any way to the existence or boundaries of the County or to the rights of the commissioners and officers thereof to hold their respective positions. The Resolution of the Board of County Commissioners authorizing the issuance of the County' s Tax Anticipation Notes, Series 1989A, was duly adopted by the Board of County Commissioners upon motion duly made and seconded and carried by a majority vote of the commissioners present and constituting a quorum thereof at a regular or special meeting thereof duly called and held prior to the issuance of the Notes, and the Resolution has not been repealed, revoked or rescinded and remains in full force and effect on the date hereof. Pursuant to the Resolution the County has established a restricted account within its general fund into which will be deposited the net proceeds of the Notes and has further established within its general fund a separate restricted account known as the "Tax Anticipation Notes, Series 1989A, Principal and Interest Redemption Account" into which will be deposited the moneys pledged to the payment of the principal of and interest on the Notes. The aggregate principal amount of all obligations issued by the County in the current fiscal year in anticipation of the collection of ad valorem taxes on real or personal property is $3 , 950,000, and the amount of ad valorem taxes on real or personal property estimated to be received by the County in the current fiscal year is $20, 476,070. The undersigned are duly authorized to execute the Notes and this certificate on behalf of the County. The Notes have been executed with the manual signatures of the undersigned, whose specimen signatures appear below. There is no litigation pending or, to the best of their knowledge, threatened, relating in any way to the authorization, issuance or delivery or the legality of the Notes. The County hereby acknowledges receipt of the full purchase price of the Notes. IN WITNESS WHEREOF, the undersigned have hereunto set their hands and the seal of the County this 25th day of January, 1989. WELD COUNTY, COLORADO By: l'/Ai" Chairman of tVe Board of County Commissioners (COUNTY) By: 2, c e ( SEAL ) Cou ty 1lerk 2 COUNTY CERTIFICATE REGARDING FEDERAL TAX MATTERS The undersigned hereby certify and declare in the name and on behalf of the County the following facts, estimates, circumstances and expectations, as of the date of issue of the County' s Tax Anticipation Notes, Series 1989A, dated January 25, 1989, in the aggregate principal amount of $3,950, 000, as follows: 1 . Capacity. As duly elected and authorized officers of the County, charged with others with the responsibility of issuing the Notes, our certification may be relied upon as the certification of the "issuer" pursuant to Treasury Regulation §1. 103-13 (a) (2 ) (ii ) . 2 . The Notes. 2 . 1 Purpose. The Notes are being issued for the purpose of paying duly budgeted current expenses of the general fund of the County. 2 .2 Note Resolution. The Notes are being issued pursuant to a Resolution duly adopted by the Board of County Commissioners prior to the issuance of the Notes. 2 . 3 Date of Notes; Date of Issue. The Notes are dated their date of issue. 3 . Original Proceeds; Cumulative Cash Flow Deficit; Other Amounts Available for Payment; Period for Which Notes Will Be Outstanding. 3 . 1 Original Proceeds. The amount to be received by the County from the sale of the Notes will be the par amount thereof. 3 .2 Cumulative Cash Flow Deficit. Based upon the County' s estimates of its revenues and expenditures during the period in which the Notes are to be outstanding, as set forth on Exhibit A hereto, the maximum cumulative cash flow deficit for such period is $4,022 , 790. Exhibit A hereto is a true and correct computation of the anticipated cumulative cash flow deficit of the County for the period from January 1, 1989, to December 31, 1989, computed in accordance with Section 1 . 103-14(c) of the regulations under Section 103 of the Internal Revenue Code of 1986, as amended (the Code) . 3 . 3 Other Amounts Available for Payment. The County expects to earn no more than $314, 127 on the investment of the original proceeds of the Notes and on the investment of amounts deposited in the "Tax Anticipation Notes, Series 1989A, Principal and Interest Redemption Account" which are to be used to pay the principal of and interest on the Notes. The County expects to spend the sum of $241, 872 to pay interest on the Notes and the sum of $10,000 to pay the costs of issuance of the Notes. Thus, there will be no more than $62,255 derived from investment proceeds available for payment of the expenditures set forth on Exhibit A hereto. There will not be any amounts in the general fund of the County or any other fund or account which are available for the payment of the expenditures set forth on Exhibit A hereto which may, without legislative or judicial action, be invaded to pay such expenditures without a legislative, judicial or contractual requirement that any such fund or account be reimbursed other than those set forth therein or herein. 3 . 4 Period for Which Notes Will Be Outstanding. The principal of and interest on the Notes will be paid within one year of their date of issue. 4. Note Account. Moneys from ad valorem taxes on real and personal property, investment proceeds on such taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County in the current fiscal year and credited to the Note Account after the issuance of the Notes, will be used to pay the principal of and interest on the Notes. There are no other funds created by the Resolution or otherwise available that will be so used. The Note Account will be used primarily to achieve a proper matching of revenues and debt service requirements on the Notes during the period for which the Notes will be outstanding. The Note Account will be depleted at least once a year. It is expected that any moneys deposited in the Note Account will be spent within a thirteen-month period beginning on the date of deposit and that any amount received from the investment of such moneys will be spent within a one-year period beginning on the date of receipt. 5 . Arbitrage Rebate. The County expects that the Notes will be exempt from the arbitrage rebate requirements of the Code and the regulations promulgated thereunder, as it is a governmental unit with general taxing powers, the Notes are not private activity bonds, 95% or more of the net proceeds of the Notes are to be used for local governmental activities of the County, and the aggregate face amount of all tax-exempt obligations issued by the County and all subordinate entities during the calendar year 1988 is not reasonably expected to exceed $5,000,000. If said expectation is not realized, the County will comply with all arbitrage rebate requirements of the Code. 2 6. Covenants and Representations. 6. 1 County Covenants. In the Resolution the County covenants that it will make no investment or other use of the proceeds of the Notes at any time during the term thereof which, if such investment or other use had been reasonably expected on the date the Notes were issued, would have caused the Notes to be "arbitrage bonds" within the meaning of Section 103 of the Code and the regulations thereunder and that it will comply with the requirements of said Section and regulations throughout the term of the Notes. The County will also comply with all information reporting requirements of the Code. 6.2 Notification. The County has not been notified of any listing of it by the Internal Revenue Service as an issuer whose certification respecting arbitrage may not be relied upon. 7 . Qualified Tax Exempt Obligations. In the Resolution the County designates the Notes as "qualified tax-exempt obligations" under Section 265(b) of the Code as the Notes are governmental bonds and the aggregate face amount of all governmental bonds and the aggregate face amount of all governmental bonds and 501(c) (3 ) bonds issued by the County and all subordinate entities during the calendar year 1988 is not reasonably anticipated to exceed $10,000, 000. 8. Certification. 8. 1 Purpose. This certification is being issued and delivered pursuant to §§ 1 . 103-13 and 1. 103-14 of the Treasury Regulations promulgated under Section 103 of the Code. 8.2 Reasonable Expectations. To the best of our knowledge, information and belief, the above expectations are reasonable. IN WITNESS WHEREOF, the undersigned have hereunto set their hands and the seal of the County this 25th day of January, 1989. WELD COUNTY, COLORADO By: I Chairman of the/Board of County Commissioners (COUNTY) �J �-( SEAL ) —f 0LCLAL By: (X;A4, 1.t i✓t r o nt Clerk 3 EXHIBIT A (1) (2) (3) (4) (5) Cumulative Surplus (Deficit) Cumulative (2 minus 1 plus or Reasonably Cash Flow Estimated Estimated minus previous figure Required Cash Surplus (Deficit) Expenditures Receipts in this column) Balance (3 minus 4) Opening Balance -- -- S 105.810 -- $ -- January S 3.622,500 $ 630,000 (2,886,690) 51,136,100 (4,022,790) February 1,136,100 1,260,000 (2,762,790) 873,600 (3,636,390) March 873,600 2,100,000 (1,536,390) 1,417,500 (2,953,890) April 1,417,500 3,407,250 453,360 1,102,500 (649,140) May 1,102,500 1,623,000 973,860 1,102,500 (128,640) June 1,102,500 840,000 711,360 1,323,000 (611,640) July 1,323,000 2,870,060 2,258,420 1,212.750 1,045,670 August 1,212,750 1,942,643 2,988,313 2,415,000 573,313 September 2.240,063 873.600 1,621.850 1,102.500 519,350 October 1,102,500 873,600 1,392,950 1,212,750 180,200 November 1,212,750 997,500 1,177,700 1,747,200 (569,500) December 1,747,200 1,144,500 575,000 3,675,000 (3,100,000) 4 Form 8038-G Information Return for Tax-Exempt (December 1986) Governmental Bond Issues OMB No 1545.0720 Department of the Treasury ►Under Section 149(e) Expires 12-31-89 Internal Revenue Service (Use Form 8038-GC if Issue price is under$100,000.) Part I Reporting Authority Check box if Amended Return ► L - 1 Issuer's name 2 Issuer's employer denteication number Weld County, Colorado 84-6000813 3 Number and street 4 Report number 915 10th Street G198 9 - 1 5 City or town,state.and ZIP code 6 Date of issue Greeley, Colorado 80632 January 25, 1989 - Part II Type of Issue(check box(es)that applies) 7 Check box if bonds are tax or other revenue anticipation bonds► ® Issue Price 8 Check box if bonds are in the form of a lease or installment sale► 0 9 0 Education 10 0 Health and hospital 11 0 Transportation 12 0 Public safety 13 0 Environment(including sewage bonds) 14 0 Housing 15 0 Utilities 16 ® Other.Describe(see instructions)► General Fund Operating Expenses $ 3,950,000 Part III Description of Bonds (a) (E) (c) Stated redemption Weighted (1) Net merest Maturity date Interest rate Issue price .rice at maturit avera-e maturit yield cost 17 Final maturity . 12/29/88 6.60• 83,950,000 83,950,000 ////////////////%%%//%//////��///%//////%/%/%/%/'////��%�� 18 Entire issue . q SO non S1-9 50.000 .934 years 6.60% 6.83% • rt IV Uses of Original Proceeds of Issue(including underwriters'discount) 19 Proceeds used for accrued interest 19 —0- 20 Proceeds used for bond issuance costs(including underwriters'discount) 20 10.000 21 Proceeds used for credit enhancement 21 —0- 22 Proceeds allocated to reasonably required reserve or replacement fund 22 —0- 23 Proceeds used to refund prior issues 23 —0- - 24 Nonrefunding proceeds of the issue(subtract lines 20,21,22,and 23 from line 18,column(c)) . . 24 3.940.000 Part V Description of Refunded Bonds(complete this part only for refunding bonds) 25 Enter the remaining weighted average maturity of the bonds to be refunded ► —0— years 26 Enter the last date on which the refunded bonds will be called ► —0- 27 Enter the date(s)the refuhded bonds were issued ► —0— Part VI Miscellaneous 28 Enter the amount(if any)of the state volume cap allocated to this issue ► —0- 29 Arbitrage rebate: a Check box if the small governmental unit exception to the arbitrage rebate requirement applies b Check box if the 6-month temporary investment exception to the arbitrage rebate requirement is expected to apply 0 c Check box if you expect to earn and rebate arbitrage profits to the U.S. ❑ 30 Enter the amount of the bonds designated by the issuer under section 265(b)(3XB)(ii) ► $3,950,000 31 Pooled financings: a Check box if any of the proceeds of this issue are to be used to make loans to other governmental units ► 0 and enter the amount ► b Check box if this issue is a loan made from the proceeds of another tax-exempt issue ► ❑ and enter the name of the issuer ► and the date of the issue ► Under pe (ties of perlur .I declare at I av e)tammed thi eturn and accompanying schedules and statements,and to the best of my knowledge and belief. _ Please they are ult.correct,a co plet Sign Finance Director Here Signature officer Date Title For Paperwork Reduction Act Notice,in page 1 of the Instructions. Form 8038-G (12-86) •u.f-OOwrnment hsbbe ONlas, teal—,sty47/44lose L104172 LAW OFFICES BALLARD, SPAHR, ANDREWS 8L INGERSOLL 30 SOUTH IT, STREET SEVENTEENTH STREET PLAZA BUILDING PHILADELPHIA,PA. 19,03 SUITE 2300 215 564-1800 TEL ECOPIER:215 496-0318 1225 17TH STREET TELEX:83-4532 DENVER, COLORADO 80202 SUITE 1100 303 292-2400 1850 K STREET, N.W. WASHINGTON,D.C.20006 TELECOPIER'.303 296-3956 202 466-5800 TELEX:90-4,85 LORING E.HARKNESS ILI January 25, 1989 Internal Revenue Service Center Philadelphia, PA 19255 Attention: Director Re: Weld County, Colorado Tax Anticipation Notes Series 1989A Dated January 25 , 1989 - $3,950 ,000 Dear Director: Enclosed herewith are three (3) copies (one originally executed) of the Information Return for Tax-Exempt Governmental Bond Issues (Form 8038-G) with respect to the above-referenced bond issue. This Return is being filed pursuant to Section 149 (e) of the Internal Revenue Code of 1986 , as amended. Please file the original of the enclosed Return and acknowledge receipt on the copies and return them separately to the issuer and the undersigned in the self-addressed envelopes provided for your convenience. Thank you for your assistance. Very truly yours, r Tit _ Loring E. Harkness III LEH:dal Enclosures cc: Mr. Donald D. Warden Certified P 557 612 824 Return Receipt Requested f-337 1.12 624 RECEIPT FOR CERTIFIED MAIL IIIIIIIIIVIICECOVERSIE SWIM awk ftt II Sant (See R.rene) -to Revenue Revenue Service Skeet and No. Center kar: ltdpiia ePA 19255 IR Postage 5 Certified Fee • $91018.Delivery Fee Restricted De very Fee towho snowing n Return whnr.,and ate Delivered Return Recept showinc whom and TOTAL. - 411 stz 4-3� UNDERWRITER'S RECEIPT The undersigned on behalf of the underwriter of the Weld County, Colorado, Tax Anticipation Notes, Series 1989A, dated January 25, 1989, in the aggregate principal amount of $3,950, 000 hereby acknowledges receipt of the Notes. IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th day of January, 1989. BOETTCHER & COMPANY, INC. By: Title: Se.,;or l]; a Prcc.1 BD6800 LAW OFFICES BALLARD, SPAHR, ANDREWS a INGERSOLL 30 SOUTH STREET PHILADELPHIA PA 19103 SUITE 2300 ONE WESTLAKES 1225 17TH STREET 1235 WESTLAKES-DRIVE DENVER, COLORADO 80202 BERWYN, PA 19312 303 252-2400 SIESMAYERSTRASSE 44 D 6000 FRANKFURT/MAIN I TELECO PIER:303 296-3956 FEDERAL REPUBLIC OF GERMANY CABLE:BALLARD AMERICAN PLAZA II,SUITE 400 57 WEST 200 SOUTH SALT LAKE CITY, UT 84101 SUITE 900 EAST 555 13rw STREET, N.W. WASHINGTON, D. C. 20004 January 25, 1989 Boettcher & Company, Inc. 828 17th Street Denver, Colorado 80202 Re: Weld County, Colorado Tax Anticipation Notes Series 1989A Dated January 25, 1989 - $3,950,000 Ladies and Gentlemen: We have acted as bond counsel in connection with the issuance by Weld County, Colorado (the County) , of its Tax Anticipation Notes, Series 1989A, dated January 25, 1989, in the aggregate principal amount of $3, 950,000 (the Notes) , issued for the purpose of paying duly budgeted current expenses of the general fund of the County. The Notes are issued in fully registered form. The principal of and interest on the Notes are payable upon presentation and surrender thereof at the office of the County Clerk in Greeley, Colorado, on December 29, 1989. The Notes bear interest at the rate of six and sixty hundredths percent (6. 60%) per annum from their date to their maturity date. The Notes are not subject to redemption in whole or in part at any time prior to maturity. The Resolution of the Board of County Commissioners of the County authorizing the issuance of the Notes (the Resolution) provides that the principal of and interest on the Notes shall be payable from ad valorem taxes on real and personal property, investment proceeds on such taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County in the current fiscal year and credited to its general fund after the issuance of the Notes. The Resolution also contains a covenant by the County that it will make no investment or other use of the proceeds of the Notes, which, if such investment or other use had been reasonably expected on the date of issue of the Notes, would have caused the Notes to be "arbitrage bonds" under Section 103 of the Internal Revenue Code of 1986, as amended (the Code) , and the regulations thereunder and that it will comply with the requirements of Section 103 of the Code throughout the term of the Notes. Officers of the County responsible for issuing the Notes have executed a certificate (the Certificate) stating the reasonable expectations of the County as of the date of issue of the Notes as to future events that are material for purposes of Section 103 of the Code and making certain covenants on behalf of the County relating to compliance therewith. In the Resolution the County has also designated the Notes as "qualified tax-exempt obligations" under Section 265(b) of the Code. In our capacity as bond counsel we have examined the laws and the Constitution of the State of Colorado, the Resolution, the certificates delivered by the County as of the date of delivery of and payment for the Notes, and such other documents as we deemed necessary in order to render this opinion. We have also examined a representative executed Note and have assumed that all other Notes have been similarly executed. Based upon the foregoing examination, it is our opinion that: 1 . The Resolution has been duly adopted and the Notes have been duly authorized, executed and delivered by the County under the laws of the State of Colorado now in force. 2 . The Notes are valid and legally binding obligations of the general fund of the County payable solely from ad valorem taxes on real and personal property, investment proceeds on such taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County in the current fiscal year and credited to its general fund after the issuance of the Notes. 3 . The Notes are enforceable according to their terms, except to the extent such enforcement is limited by bankruptcy and other laws of general application relating to or affecting the enforcement of creditors' rights, by the reasonable exercise of the sovereign police power of the State of Colorado, and by the exercise of the powers delegated to the United States of America by the federal Constitution. Based upon the foregoing examination and our review of the Code and the regulations and ruling thereunder and of the Certificate and assuming compliance by the County with certain covenants contained in the Resolution and the Certificate, it is also our opinion that: 2 1 . The Notes are not arbitrage bonds within the meaning of the Code. 2 . Interest on the Notes is excluded from gross income for federal income tax purposes under the laws and regulations of the United States of America as presently enacted and construed. 3 . Interest on the Notes is not an item of preference for purposes of computing the individual or corporate alternative minimum tax under the laws and regulations of the United States of America as presently enacted and constructed. However, interest on Notes held by corporations (other than regulated investment companies, real estate investment trusts, real estate mortgage investment conduits and certain S corporations) may be indirectly subject to the alternative minimum tax or the environmental tax because of its inclusion in the reported income or earnings and profits of corporations, and interest on Notes held by foreign corporations may be subject to the branch profits tax imposed by the Code. 4. The Notes are "qualified tax-exempt obligations" under Section 265(b) of the Code for purposes of determining the deductibility of interest expenses of banks and other financial institutions holding the Notes. 5 . Interest on the Notes is exempt from State of Colorado income taxes under the laws of the State of Colorado as presently enacted and construed. Ownership of tax-exempt obligations may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, S corporations, individual recipients of Social Security or Railroad Retirement benefits, foreign corporations engaged in a trade or business in the United States and taxpayers who may be deemed to have incurred or continued debt to purchase or carry such obligations. We express no opinion herein with respect to such consequences. We also express no opinion herein with respect to the accuracy or completeness of any documents prepared or used or statements made in connection with the offering or sale of the Notes. Very truly yours, -r- yC s 3 PRELIMINARY OFFERING CIRCULAR New Issue Not Rated In the opinion of Bond Counsel, interest on the Notes is excluded from gross income for federal income tax purposes, is exempt from Colorado income tax and is not an item of preference for purposes of computing the individual or corporate alternative minimum tax, to the extent, upon the conditions and subject to the limitations stated under 'TAX EXEMPTION". $4,000,000 WELD COUNTY, COLORADO Tax Anticipation Notes, Series 1989A Dated: January 25, 1989 Due:December 29, 1989 The Notes are being issued as fully registered Notes without coupons. Interest, at the rate set forth below, is computed on a basis of a 360-day year and is payable on December 29, 1989. The Notes are not subject to redemption in whole or in part at any time. AMOUNT MATURITY RATE YIELD $4,000,000 12-29-89 100% The Notes are payable solely from ad valorem taxes on real and personal property previously levied, investment proceeds on such taxes and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County in the current fiscal year and credited to the General Fund after the issuance of the Notes. The Notes are offered when, as, and if issued by the County subject to the approving legal opinion of Bond Counsel, Ballard, Spahr, Andrews & Ingersoll, Denver, Colorado. The matters passed upon by Bond Counsel do not extend beyond the validity and enforceability of the Notes and the tax treatment of interest thereon under Federal and State of Colorado income tax laws, and Bond Counsel has no responsibility for the accuracy, completeness of fairness of statements made to any person in connection with any offer or sale of the Notes in this document or otherwise. BOETTCHER & COMPANY, INC. Certain of the information contained herein has been obtained from the issuer of the Notes identified herein (the "County") and other sources which are believed to be reliable. Such information is neither guaranteed as to accuracy or completeness nor to be construed as a representation by Boettcher & Company, Inc. (the "Underwriter"). The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Offering Circular nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County, since the date hereof. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which it is unlawful for any person to make such an offer, solicitation or sale. No dealer, broker, salesman or other person has been authorized to give any information or to make any representations other than as contained in this Offering Circular. If given or made, such other information or representations must not be relied as having been authorized by the County or the Underwriter. The summaries of various statutes, resolutions, and other documents contained herein are intended as summaries only and are qualified in their entirety by reference to the originals thereof, copies of which are available from the Underwriter or the County during the period of the original offering of the Notes, upon reasonable request and payment of the reasonable costs of 'Ty.S rg the same. ;NNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER ALLOT _FFLCT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE THE NOTES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN E OPEN MARKET. SUCH STABILT7ING,IF COMMENCED,MAY BE DISCONTINUED AT ANY TIME. 2 TABLE OF CONTENTS PAGE INFORMATION 4 THE NOTES 4 Description 4 Redemption Provisions 4 Authorization 4 Security 4 Investment of Proceeds 5 THE COUNTY 5 The Board of County Commissioners 5 FINANCIAL INFORMATION CONCERNING THE COUNTY 6 General Fund 6 Property Tax Collection 8 Historical Property Tax Date 8 DEBT STRUCTURE OF THE COUNTY 9 Direct Indebtedness 9 STATISTICAL INFORMATION CONCERNING THE AREA OF THE COUNTY 9 Population and Income 9 Effective Buying Income 10 Retail Sales 10 Bank Deposits 11 Employment 11 TAX EXEMPTION 11 LEGAL MATTERS 12 RATING 12 UNDERWRITER 12 APPENDIX A Audited Financial Statements of the County for the Period Ending December 31, 1987 3 INFORMATION This Offering Circular is provided to furnish certain information in connection with the issuance by Weld County, Colorado (the "County") of its Tax Anticipation Notes, Series 1989A, in the he to be issued pursuant to a Resolution (the aggregate "Resolution") adopipal ted by the Board of ount of County Commissioners of the County on January 11, 1989. The Notes are being issued to pay duly budgeted current General Fund expenses. Brief descriptions of the County and the Notes are included in this Offering Circular. Such descriptions do not purport to be comprehensive or definitive. All reference herein to the Resolution, the Notes, and other documents are qualified in their entirety by reference to such documents or to the form of the Notes, copies of which are available for inspection in the office of the County. THE NOTES Description The Notes are to be issued by the County in an aggregate principal amount of $4,000,000, to be dated January 25, 1989, to be registered as to principal and interest, to bear interest from issue date to maturity at the rate per annum set forth on the Cover Page hereof, computed on the basis of a 360-day year. The Notes will pay interest and mature on December 29, 1989. The principal of and interest on the Notes are payable at maturity, upon surrender of the Notes, to the office of the County bank or depository as the registered e registered owner or by wire owner shall designate transfer to such Redemption Provisions Notes of this issue are not subject to redemption prior to maturity. Authorization The Notes are issued pursuant to the Resolution and the Constitution and laws of the State of Colorado, including, in particular, Section 29-15-101 et seq., Colorado Revised Statutes, as amended. Security The proceeds of the Notes are to be deposited in the General Fund of the County and are to be used solely for the payment of duly budgeted current expenses when andtoot however,that any other moneys on deposit in the General Fund are insufficient therefor; provided portion of the proceeds may be temporarily invested in securities or investments which are lawful investments for the County. All ad valorem personal and real property taxes ('Taxes") levied for General Fund purposes (except Taxes collected for retirement of existing debt,) investment proceeds on such Taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County in the Current Fiscal Year after the 4 • issuance of the Notes are to be deposited in a restricted account within the General Fund to be known as the 'Tax Anticipation Notes, Series 1989A, Principal and Interest Redemption Account" (the "Note Account") until such time as the moneys are sufficient to pay when due the principal of and interest on the Notes. All moneys in the Note Account not in excess of the amount required to pay when due the principal of and interest on the Notes, and all securities in which the same may be invested from time to time, are pledged to secure the payments of the principal of and interest on the Notes. Investment of Proceeds Proceeds of the Notes and moneys held in the Note Account will, pending their use, be invested in securities which are legal investments for Colorado counties or deposited in eligible public depositories, with such deposits being insured or collateralized as required by law. THE COUNTY Weld County, established in 1861, is located at the north central part of the State and is the third largest county in Colorado, covering an area of approximately 4,033 square miles. The surface is level to rolling prairies with low hills near the western border. Elevations range from 4,400 to 5,000 feet. The South Platte River and its tributaries, the Cache La Poudre, Big Thompson, Little Thompson, Boulder, and St. Vrain enter from the south and west and leave the county on the east. Weld County is an agricultural region, ranking fourth in the nation in dollar value of sales according to the government's 1982 farm census rankings. More than 85 percent of its area is devoted to irrigated and dryland farming and livestock raising. Weld County incorporates one of the nation's largest irrigated areas: 647,000 acres of the 2,500,000 acres in Weld County are irrigated by a combination of mountain run-off which is controlled by eight major irrigation companies and 4,000 wells. The reservoir storage and stream run-off supply an annual average of 900,000 acre feet while the wells supply approximately 250,000 acre feet of water. The Colorado Big Thompson Water Diversion Project supplies approximately 300,000 acre feet of water annually. Water is diverted to farms and ranches via an extensive system of irrigation canals. Oil and gas play an important role in the economic picture of Weld County. Wattenberg Gas field, part of which is located in the southern part of Weld County, was discovered by Amoco Oil Company, the prime developer of the field. Amoco Oil has estimated that this field contains approximately 400 billion feet of gas reserves. The gas that is being produced by the Wattenberg Field is delivered to the Public Service Company of Colorado. This potentially great gas accumulation covers nearly 1,000 square miles. Wattenberg Field is also producing some oil. Development of oil and gas wells has had an increasingly more significant impact on the economy of Weld County in the past ten years. The Board of County Commissioners The County is governed by a five-member Board of County Commissioners (the "Board") whose members are elected on a district system by the registered, qualified electors of the County for staggered four-year terms of office. The Board is a policy-making body whose primary functions are to establish policies for the County and oversee the property and facilities and financial affairs of the County. 5 he present directors and officers of the Board and the expiration of their respective terms of office are as follows: Term Expires Name Title December 31 C.W. Kirby Chairman 1992 Jacqueline Johnson Pro-tem 1990 Gene R. Brantner Commissioner 1990 George Kennedy Commissioner 1992 Gordon E. Lacy Commissioner 1992 FINANCIAL INFORMATION CONCERNING THE COUNTY The financial operations of the County are, pursuant to State law, conducted primarily through its General Fund. General Fund The General Fund is the major operating fund of the County, providing most of the resources for the County's general operations. General Fund revenues amounted to $16,404,647 in 1987, a decrease of 3.1% from 1986. The decrease is attributed to the transfer of the ambulance service revenues from the General Fund to an Enterprise Fund. With the ambulance service revenues adjusted out of the 1986 figures there was a 2.2% increase in the 1987 General Fund revenue. The revenues derived from various sources are reflected in the following table: 6 215 1986 197 RT 5E: $ 9,873,318 510,258,786 $10,793,324 nses & Permits 368,239 363,103 382,707 .;rgovernmental Revenue 891,822 1,144,412 879,166 aarges for Services 1,157,164 1,352,129 451,484 Fines and Forfeitures 69,455 13,250 76,465 Miscellaneous Revenue 2,190,774 2,301,231 1,056,616 Earnings on Investments 1,052,991 Fee Accounts 1.631.937 1 547 SW L711.894 Total Revenue 516.182.709 516.928.147 516.404.647 EXPENDITURES: Current Operating: General Government $6,120,746 $6,525,593 $6,819,165 Public Safety 7,283,096 7,496,132 6,924,599 Public Works 518,699 482,827 522,724 Public Health & Welfare 116,045 169,106 124,536 Culture & Recreation 95,622 86,562 273,702 Conservation of Natural Resources -0- 6,025 -0- Economic Assistance 10,64 348 0 -0- 69,650 , Capital Outlay145 Debt Service 110,985 170,977 126,088 Miscellaneous 658.426 186.978 273.702 Total Expenditures $14.913.833 $15.293.84Q $15.234.669 EXCESS (DEFICIENCY OF REVENUE OVER EXPENDITURES) $ 1.268.826 $ 1.634.297 $ 1.169,978 OTHER FINANCING SOURCES (USES): Operating Transfers-In $ 310,000 $ 59,140 $ 2,129,550 Operating Transfers-Out (1.986.1221 (12823701 (1.285.1931 Total Other Financing Sources (Uses) $(1.676.122) 5(1.223.2301 5(1.176.8001 EXCESS OF (DEFICIENCY) OF REVENUE AND OTHER SOURCES OVER EXPENDITURES AND 411.067 (6.822) OTHER USES (407.296) FUND BALANCE, (Deficit), Beginning of Period $ 1.14531Q $ 738.214 51.149.280 Equity Transfers to Other Funds (128,780) FUND BALANCE (Deficit), End of Period $ 738.214 $ 1.149.282 $ 1.013.678 7 Property Tax Collection Taxes levied in one year are collected in the next; thus 1988 taxes will be collected in 1989. Taxes are said to be due January 1 in the year of collection; however, they may be paid in two installments, without interest penalty, if the payments are made by February 28 and by July 31 of the collection year. The property owner may elect to make only one payment, and if made by April 30, it is also free of interest penalty. _ All taxes levied on property, together with interest thereon and penalties for default, as well as all other costs of collection, constitute a perpetual lien on and against the property taxes, and such lien is on a parity with the tax liens of other general taxes. In the event collection of property taxes becomes impossible, the County Treasurer may distrait', seize, and sell property to enforce the collection of delinquent taxes on such property, as well as conduct a regular tax sale to enforce the collection of delinquent taxes on real property. There can be no assurance that the value of specific property, in the event of foreclosure and sale by t'.e Weld County Treasurer, would be sufficient to produce the amount required with respect to taxes le :'. by the County and by overlapping taring entities. Prooertv Tax Levies and Collections in the County Collection Total Tax Total % of Year Lew Collected Collections 1978 $10,618,807 $10,558,800 99.43 1979 11,144,614 11,101,916 99.62 1980 11,708,099 11,660,552 99.59 1981 12,622,216 12,596,620 99.68 1982 13,252,865 13,169,249 99.37 1983 14,399,734 14,307,719 99.36 1984 15,119,720 14,985,503 99.11 1985 15,875,706 15,469,833 97.44 1986 17,147,925 17,013,025 99.20 1987 18,005,273 17,756,037 98.60 Source: Weld County 1987 Annual Financial Report Historical Property Tax Data Set forth below is certain historical information concerning mill levies, assessed valuation and property tax collection for the County. Mill Levy History 1982- 1989 1982 17.172 1983 17.369 1984 19.342 1985 19.342 1986 19.342 1987 19.860 1988 17.208 1989 19.268 Source: State Department of Property Taxation 8 Total Assessed Valuation of the County 1980 - 1988 Budget Assessed Percent Year Valuation Increase 1980 S 677,285,480 9.8% 1981 731,849,970 9.3% 1982 771,771,770 93% 1983 870,453,500 8.9% 1984 820,747,830 (1.1%) 1985 886,564,250 9.3% 1986 813,134,000 (83%) •1987 1,118,963,490 37.6% 1.988 1,062,703,770 (5.0%) *Reassessment mandated by Colorado statute changed the base year of market value for valuation from 1977 in 1986 to 1985 in 1987. Source: Weld County 1987 Annual Financial Report DEBT STRUCTURE OF THE COUNTY Direct Indebtedness The County currently has no outstanding debt. .STATISTICAL INFORMATION CONCERNING THE AREA OF THE COUNTY Population and Income The following table presents the estimates of the populations of the State of Colorado and Weld County developed by the U.S. Bureau of the Census. Population Estimates Weld County Colorado 1960 72,344 1,753,947 1970 89,297 2,207,259 1980 123,438 2,889,735 1985 133,922 3,229,621 1986 137,230 3,296,269 1987 140,200 3,267,000 Source: U.S. Bureau of the Census Colorado Division of Local Governments 9 Eller yingIncome 5 Larketing Management's annual surveys of buying power have reported that the following median d effective buying income ("EBI") levels for the six-year period shown. Median Household EBI Weld County Colorado 1982 18,577 22,589 1983 20,441 24,713 1984 22,249 26,549 1985 26,562 31,759 1986 21,752 26,397 1987 22,164 26,775 Percent of Households by Effective Buvina Income Groups - 1988 Weld County Colorado EBI Group Households Households $10,000 - 19,999 24.7 21.6 20,000 34,999 30. 27.6 35,000 - 49,999 15. 18.3 50,000 and Over 10.1 17.3 Source: Sales & Marketing Management's 1987 Survey of Buvine Power. July. 1988 Retail Sales Retail Sales Weld County 1980 S 781,318,019 1981 909,429,330 1982 995,204,398 1983 1,022,894,704 1984 1,111,048,467 1985 1,118,318,553 1986 1,044,149,916 1987 1,095,656,542 Source: Colorado Department of Revenue 10 Bank Deposits Bank Deposits -Weld County 1980 524,243,000 1981 560,351,000 1982 602,286,000 1983 673,108,000 1984 690,983,000 1985 695,608,000 1986 611,319,000 1987 783,258,000 Source: Sheshnoffs Banks of Colorado Employment Annual Average Labor Force Estimates Weld County Total Total Total Percent Labor Force Employed Unemployed Unemployed 1981 61,024 57,277 3,747 6.1 1982 61,718 57,133 4,585 7.4 1983 63,294 59,113 4,181 6.6 1984 64,265 60,416 3,849 6.0 1985 65,318 60,971 4,347 6.7 1986 63,849 56,847 7,002 11.0 1987 66,205 60,776 5,429 8.2 Source: Colorado Division of Employment TAX-EXEMPTION In the opinion of Bond Counsel, assuming the accuracy of certain certifications of the County regarding federal income tax matters and continuing compliance with the requirements of the Internal Revenue Code of 1986, as amended, interest on the Notes is excluded from gross income for federal income tax purposes and is not an item of preference for purposes of either the individual or corporate alternative minimum tax under the laws and regulations of the United States of America as presently enacted and construed. However, interest on Notes held by corporations (other than regulated investment companies, real estate investment trusts, real estate mortgage investment conduits and certain S corporations) may be indirectly subject to the alternative minimum tax and the environmental tax because of its inclusion in the reported income or earnings and profits of corporations, and interest on Notes held by foreign corporations may be subject to the branch profits tax. In the opinion of Bond Counsel, the Notes are "qualified tax-exempt obligations" under Section 265(b) of the Code for purposes of determining the deductibility of interest expense of banks and other financial institutions holding the Notes. 11 Ownership of tax-exempt obligations may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, S corporations, individual recipients of Social Security or Railroad Retirement benefits, foreign corporations engaged in a trade or business in the United States and taxpayers who may be deemed to have incurred or continued debt to purchase or carry such obligations. Bond Counsel will express no opinion with respect to such consequences. In the opinion of Bond Counsel, interest on the Notes is also exempt from Colorado income taxation under the laws of the State of Colorado as presently enacted and construed. LEGAL MATIBR$ Legal matters incident to the authorization and issuance of the Notes are subject to approval by Ballard, Spahr, Andrews & Ingersoll, Denver, Colorado, Bond Counsel, whose approving opinion on such matters is expected to state in substance that the Notes are valid and binding obligations of the general fund of the County payable solely from ad valorem taxes on real and personal property previously levied, income and investment proceeds on such taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County and credited to its general fund in the current fiscal year after the issuance of the Notes and that the Notes are enforceable according to their terms, except to the extent such enforcement is limited by the bankruptcy and other laws affecting the enforc,�ment of creditors' rights, by the reasonable exercise of the police power of the State of Colorado, and by the exercise of the powers delegated to the United States of America by the Federal Constitution. RATING These Notes have not been rated by any municipal rating service. UNDERWRITER The Notes are being purchased by Boettcher & Company, Inc. at par value. The County has agreed to pay the Underwriter a fee of $6,000. The Underwriter has advised the County that it intends to make a public offering of the Notes at the price set forth on the cover hereof. 12 APPENDIX Deloitte Haskins+Sells 1560 Broadway, Suite 1800 One Civic Center Plaza Denver. Colorado 80202-5151 (303) 837-3000 ITT Telex: 4995604 Board of County Commissioners County of Weld, Colorado Greeley, Colorado We have examined the general purpose financial statements of the County cf Weld, Colorado as of and for the year ended December 31 , 1987 as listed in the table of contents. 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 general purpose financial statements referred to above present fairly the financial position of the County of Weld, Colorado at December 31, 1987, and the results of its operations and the changes in financial position of its proprietary fund types and pension trust fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining individual fund and individual account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the County of Weld, Colorado. Such information- has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and. in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. Our examination did not include the information presented in the Statistical section and, accordingly, we express no opinion on it. gk2klet&ZH e 4DELOITTE HASKINS AND SELLS Denver, Colorado May 20, 1988 COUNTY OF WELD STATE OF COLORADO COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1987 Governmental Fund Types Special Capital Special General Revenue Projects Assessment ASSETS ASSETS: Cash and short term investments $ 3,373,743 $ 5,013,514 $ 1,514,833 $ 53,754 Cash - other 28,125 940,152 3,925 0 Investments 0 0 0 0 Receivables (net of allowance for uncollectibles): Current property tax 11,247,635 6,614,857 532,000 0 Delinquent property tax 182,377 107,662 5,255 0 Accounts 171,904 284,075 1,030 Special assessments 0 0 0 902,271 Due from other county funds 142,229 188,170 80 8,749 Due from other governmental units 220,519 1,990,944 0 0 Advances to other funds 107,271 75,000 0 C Inventories 31,339 740,778 0 0 Amount to be provided for retirement of general long-term debt 0 0 0 0 Prepaid and other assets 46,232 59,787 0 0 Land 0 0 0 0 Buildings 0 0 0 0 Improvements other than buildings 0 0 0 0 Machinery and equipment 0 0 0 0 Accumulated depreciation 0 0 0 0 TOTAL SSETS S 15,551,374 $ 16,014,939 S 2,057,123 S 964,774 LIABILITIES AND FUND BALANCE LIABILITIES: Voucher and warrants payable S 153,084 $ 427,704 $ 60,397 S 0 Accrued liabilities 580,658 439,681 1,675 0 Due to other governments 15,075 1,474,278 0 0 Due to other county funds 376,480 579,697 80 8,749 Deferred revenue 11,407,008 6,809,591 537,255 823,850 Unexpended grant revenue 100,391 1,261,659 0 0 Other liabilities 0 69,936 0 0 Advance from other funds 0 0 0 102,271 Retainage payable 0 0 72,014 0 Bonds payable 1,905,000 0 0 700,000 General long term debt 0 0 0 0 Deferred compensation payable 0 0 0 0 Total Liabilities $ 14,537,696 S 11,062,546 1.--Eli—`21. S 1,634,870 FUND EQUITY: Contributed capital S 0 $ 0 $ 0 S 0 Retained earnings 0 0 0 0 Investment in fixed assets 0 0 0 0 Fund Balances: Reserved 213,169 1,406,862 144,351 0 Unreserved: Designated for subsequent year's expenditures 190,108 1,115,348 1,241,351 0 Undesignated 610,401 2,430,183 0 (670,096) Total Fund Equity (deficit) 1-1,212,67l S 4,952,393 S 1,385,702 S (670,096) TOTAL LIABILITIES AND FUND EQUITY S 15,551,374 $ 16,014,939 S 2,057,123 S 964,774 See Notes to Financial Statements Proprietary Fiduciary Fund Type Fund Type Account Grout's Memorandum Total Enterprise internal Trust and General General December 21 December 31. Fund Service Agency Fixed Assets Long Term Debt 1987 1986 $ 67,904 $ 1,457,062 $ 7,399,752 $ 0 $ 0 $ 18,880,562 $ 18,774,571 0 7,500 127,395 0 0 1,107,097 65,131 0 0 20,532,162 0 0 20,532,162 20,314,295 0 511,095 0 0 0 18,905,587 18,005,321 0 8,954 1,965 0 0 306,213 404,559 208,713 55,239 264,448 0 0 985,409 856,411 0 0 0 0 0 902,271 1,006,758 90,415 595,562 4,898 0 0 1,030,103 676,621 0 0 0 0 0 2,211,463 2,269,202 O 0 0 0 0 182,271 186,758 O 147,591 0 0 0 919,708 1,044,913 0 0 0 0 1,532,630 1,532,630 1,254,028 0 203,305 58,770 0 0 368,094 298,405 0 712,970 0 2,095,212 0 2,808,182 2,283,332 0 750,220 0 18,428,653 0 19,178,873 19,435,227 0 19,345 0 230,920 0 250,265 237,356 31,717 11,750,493 0 3,539,923 0 15,322,133 14,197,521 (6,476) (7,001,654) 0 0 0 (7,008,130) (6,307,340) $ 392,273 $ 9,217,682 S 28,389,390 $ 24,294,708 $ 1,532,630 $ 98,414,893 S 95,003,069 $ 6,999 $ 778,024 $ 738,156 $ 0 $ 0 $ 2,164,364 $ 1,560,181 66,856 160,294 0 0 0 1,249,164 1,111,335 0 0 3,143,978 0 0 4,633,331 4,792,509 39,904 16,491 8,702 0 0 1,030,103 676,619 0 550,030 1,965 0 0 20,129,699 19,440,361 0 0 0 0 0 1,362,050 1,283,881 0 0 0 0 0 69,936 70,536 O 80,000 0 0 0 182,271 186,758 0 0 0 0 0 72,014 25,440 0 0 0 0 317,000 2,922,000 2,250,000 0 0 0 0 1,215,630 1,215,630 1,254,028 O 0 663,105 0 0 663,105 509,526 $ 113,759 $ 1,584,839 $ 4,555,906 $ 0 $ 1,532,630 $ 35,693,667 S 33,161,174 S 19,762 $ 5,784,501 $ 0 $ 0 $ 0 $ 5,804,263 $ 5,712,895 258,752 1,848,342 0 0 0 2,107,094 1,865,122 O 0 0 24,294,708 0 24,294,708 23,593,310 0 0 20,121,067 0 0 21,885,449 22,967,874 0 0 0 0 0 2,547,292 1,421,987 0 0 3,712,417 0 0 6,082,420 6,280,707 $ 278,514 $ 7,632,843 $ 23,833,484 $ 24,294,708 $ 0 $ 62,721,226 $ 61,841,895 $ 392,273 $ 9,217,682 t282282,340 $ 24,294,708 $ 1,532,630 $ 98,414,893 $ 95,003,069 COUNTY OF WELD STEAL OF COLORADO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS December 31, 1987 Governmental Fund Types Special Capital Special General Revenue Projects Assessment REVENUES: Taxes $ 10,793,324 $ 7,770,984 S 280,150 S 0 Licenses and permits 382,707 230,319 0 0 Intergovernmental revenue 879,166 19,910,143 0 0 Charges for services 451,484 692,078 6,155 0 Fines and forfeitures 76,465 0 0 0 Miscellaneous revenue 1,056,616 173,156 2,027,000 199,907 Fee accounts 1,711,894 0 0 0 Earnings on investments 1,052, , 991 0 1030 0 Total Revenues 16,404, , , , , , 647 28 2 199907 EXPENDITURES: Current Operating: General government $ 6,819,165 $ 0 $ 0 $ 0 Public safety 6,924,599 0 Public works 0 0 524,534 9,353,622 0 0 Public health and welfare 124,536 14,664,498 0 0 Miscellaneous 273,702 138,837 17,298 0 Culture and recreation 95,710 148,461 0 0 Conservation of natural resources 0 0 0 0 Economic assistance 0 4,491,346 0 0 Capital outlay 348,145 246,166 1,034,212 8,749 Debt service 126,088 0 1,675 72,500 Intragovernmental 0 594982 0 0 , Total Expenditures 15,234, , , , , , 669 29637912 1 81249 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,169, , , 978 (861,232) 1261,150 118658 OTHER FINANCING SOURCES (USES): Operating transfers - in $ 108,393 $ 2,129,550 $ 0 $ 1,693 Operating transfers - out (1,285,193) (1,164,481) 0 0 Total Other Financing Sources (Uses) (1,176,800) 965,069 0 1693 , EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (6,822) 103,837 1,261,150 120,351 FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR 1,149,280 4,848,556 124,552 (790,447) Equity Transfers to Other Funds (128,780) 0 0 0 FUND BALANCE (DEFICIT) AT END OF YEAR $ 1,013,678 $ 4,9 , , , 52393 $ 1385,702 S (670 096) See Notes to Financial Statements Fiduciary Fund Types Memorandum Total Expendable December 31 December 31 Trust 1987 1986 $ 2,377 $ 18,846,835 $ 17,888,662 0 613,026 581,360 0 20,789,309 20,720,989 0 1,149,717 1,742,650 O 76,465 67,198 1,050,014 4,506,693 2,231,622 0 1,711,894 1,680,356 355,154 1,409,175 1,543,522 1,407,545 49,103,114 46,456,359 $ 0 S 6,819,165 $ 6,516,851 0 6,924,599 7,272,935 0 9,876,346 8,505,739 O 14,789,034 14,660,502 3,120,713 3,550,550 1,401,846 0 244,171 265352 5,352 0 0 0 4,491,346 3,962,816 O 1,637,272 1,397,988 0 200,263 252,753 O 594,982 488,119 3,120,713 49,127,728 44,730,926 (1,713,168) (24,614) 1,725,433 $ 0 $ 2,239,636 $ 3,347,991 0 (2,449,674) (3,351,695) 0 (210,038) (3,704) (1,713,168) (234,652) 1,721,729 5,217,620 10,549,561 8,827,832 0 (128,780) 0 S 3,504,452 $ 10,186,129 $ 10,549,561 COUNTY OF WELD . STATE OF COLORADO COMBINED STATEMENT OF REVENUES AND EXPENDITURES T S December 31, 1987 — General Special Revenue Variance Variance Estimate/ Favorable Estimate/ Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes S 10,710,080 $ 10,793,324 $ 83,244 $ 7,994,029 $ 7,770,984 $ (223,045) Licenses and permits 395,005 382,707 (12,298) 100,750 230,319 129,569 Intergovernmental 814,325 879,166 64,841 21,631,736 19,910,143 (1,721,593) Charges for services 454,764 451,484 (3,280) 233,725 692,078 458,353 Fines and forfeitures 28,645 76,465 47,820 0 0 0 Miscellaneous 928,306 1,056,616 128,310 1,600 173,156 171,556 Fee accounts 1,731,843 1,711,894 (19,949) 0 0 0 Earnings on investments 1,202,270 1,(Z2,991 (149,279) 0 0 0 Total Revenues 16,265,238 16,404,647 139,409 29,961,840 28,776,680 (1,185,160) PENDITURES: Current Operating: General government $ 7,023,669 $ 6,819,165 $ 204,504 $ 0 $ 0 $ 0 Public safety 7,158,485 6,924,599 233,886 0 0 0 Public works 546,138 522,724 23,414 10,735,112 9,353,622 1,381,490 Public health and welfare 124,536 124,536 0 15,368,729 14,664,498 704,231 Miscellaneous 373,173 273,702 99,471 242,911 138,837 104,074 Culture and recreation 32,005 95,710 (63,705) 182,301 148,461 33,840 Economic assistance 0 0 0 4,972,196 4,491,346 480,850 Capital outlay 389,449 348,145 41,304 17,250 246,166 (228,916) Debt service 126,089 126,088 1 0 0 0 0 0 Intragovernmental0 607,525 594,982 12,543 Total Expenditures 15,773,544 15,234,669 538,875 32,126,024 29,637,912 2,488,112 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 491,694 1,169,978 678,284 (2,164,184) (861,232) 1,302,952 OTHER FINANCING SOURCES (USES): Operating transfers - in $ 108,192 $ 108,393 $ 201 $ 717,240 $ 2,129,550 $ 1,412,310 Operating transfers - out (1,196,127) (1,285,193) (89,066) (1,036,113) (1,164,481) (128,368) Total Other Financing Sources (Uses) (1,087,935) (1,176,800) (88,865) (318,873) 965,069 1,283,942 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES l_(596a3121) $ (6,822) $ 589,419 i(2,4832211) S 103,837 S 2,586,894 See Notes to Financial Statements • Capital Projects Special Assessments Memorandum Totals Variance Variance Variance Estimate/ Favorable Estimate/ Favorable Estimate/ Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable' $ 277,491 $ 280,150 $ 2,659 $ 0 S 0 $ 0 $18,981,600 $18,844,458 S (137,142) 0 0 0 0 0 0 495,755 613,026 117,271 0 0 0 0 0 0 22,446,061 20,789,309 (1,656,752) 0 6,155 6,155 0 0 0 688,489 1,149,717 461,228 _ 0 0 0 0 0 0 28,645 76,465 47,820 2,009,500 2,027,000 17,500 206,369 199,907 (6,462) 3,145,775 3,456,679 310,904 0 0 0 0 0 0 1,731,843 1,711,894 (19,949) O 1,030 1,030 0 0 0 1,202,270 1,054,021 (148,249) 2,286,991 2,314,335 27,344 206,369 199,907 (6,462) 48,720,438 47,695,569 (1,024,869) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 7,023,669 S 6,819,165 $ 204,504 O 0 0 0 0 0 7,158,485 6,924,599 233,886 0 0 0 0 0 0 11,281,250 9,876,346 1,404,904 0 0 0 0 0 0 15,493,265 14,789,034 704,231 O 17 298 (17,298) 0 0 0 616,084 429,837 186,247 O 0 0 ' ' 0 0 0 214,306 244,171 (29,865) 0 0 0 0 0 0 4,972,196 4,491,346 480,850- 1,294,879 1,034,212 260,667 8,750 8,749 1 1,710,328 1,637,272 73,056 0 1,675 (1,675) 184,750 72,500 112,250 310,839 200,263 110,576 0 0 0 0 0 0 607,525 594,982 12,543 1,294,879 1,053,185 ---343.1111-1 193,500 81,249 112,251 49,387,947 46,007,015 3,380,932 992,112 1,261,150 269,038 12,869 118,658 105,789 (667,509) a 2,356,06?- S 0 S 0 S 0 $ 1,694 $ 1,693 $ (1) $ 827,126 $ 2,239,636 $ 1,412,510 0 0 0 0 0 0 (2,232,240) (2,449,674) (217,434) • 0 0 0 1,694 1,693 (1) (1,405,114) (210,038) 1,1 7695,0 $ 992,112 $ 1,261,150 S 269,038 $ 14,563 $ 120,351 S 105,788 S(2,072,623) $ 1,478,516 $ 3,551,139 COUNTY OF WELD STATE OF COLORADO COMBINED STATEMENT OP REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS/ FUND BALANCES - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS December 31, 1987 Proprietary Fiduciary Fund Tyne Fund Type Memorandum Total Enterprise Internal Pension December 31 Decemoer 31 Fund Service Trust 1987 1986 OPERATING REVENUE: Change in unrealized appreciation(depreciation) in fair market value 0 $ 0 S (2,369,532) S (2,369,532) S (507,173) of investments S 0 0 1,675,355 1,675,355 1,487,861 Contributions 28 466 4,588,229 Charges for services 1,192,479 5,087,987 0 6, 0, Total Operating Revenue 1,192,479 5,087,987 (694,177) 5,586,289 5,568,917 OPERATING EXPENSES: 0 $ 2,025,707 S 1,319,135 Personnel services S 675,916 S 1,349,791 $ 0 1 025 701 1,451,478 Contractual services 36,592 1,629,259 ,665,850 451,478 Supplies 31,830 409,080 0 , Heat, light, and power 6,885 229,945 0 236,830 238,610 Repair and maintenance 88,629 243,474 0 332,103 224,723 Insurance and bonds 15,000 478,669 0 493,669 372,345 Claims 0 285,647 0 285,647 132,136 Other expenses 313,477 10,708 0 324,185 35,391 Benefit Payments 0 0 602,568 602,568 464,517 0 0 230,810 230,810 246,809 Refunds 0 0 108,459 108,459 116,852 Administrative Depreciation 6 1,280,778 1,245,277 ,928 1,273,850 0 Total Operating Expenses 1,175,257 5,910,423 941,837 8,027,517 6,188,075 OPERATING INCOME (LOSS) 17,222 (822,436) (1,636,014) (2,441,228) (619,158) NON-OPERATING REVENUE (EXPENSE): Taxes S 0 $ 548,693 S 0 5 548,693 $ 546,921 Miscellaneous revenue 2,712 108 0 2,820 0 Farm income 0 1,803 0 1,803 2,807 Gain (loss) on sale of 0 89,807 0 89,807 11,329 assets Earnings on investments 0 22,320 1,844,039 1,866,359 3,143,5 80 Interest expense 0 (17,303) 0 (17,303) (20,094) Judgements and damages 0 60,228 0 60,228 30,492 Tbtal Non-Operating 552,407 3,715,035 Revenue (Expense) 2,712 705,656 1,844,039 2, OTHER FINANCING SOURCES: 0 S 210,038 S °.704 Operating transfers - in .S____1]...22131 S 100,000 $ NET INCOME (LOSS) 129,972 (16,780) 208,025 321,217 3,099,581 RETAINED EARNINGS/FUND BALANCE AT BEGINNING OF YEAR 0 1,865,122 20,121,007 21,986,129 18,886,548 Equity Transfer From Other 0 0 128,780 0 Funds 128,780 RETAINED EARNINGS/FUND BALANCE AT END OF YEAR S 258,752 1-121-1--18342 $ 20,329,032 $ 22,436,126 S 21,986,129 See Notes to Financial Statements COUNTY OF WELD STATE OF COLORADO BROPRIETARY r6NUS COMBINED STATEMENT OF CHANGES IN CONTRIBUTED CAPITAL December 31, 1987 Internal Service Enterprise Funds Fund Total CONTRIBUTED CAPITAL January 1, 1987 $ 5,712,895 $ 0 $ 5,712,895 Add: 1987 contributions from other funds 71,606 19,762 91,368 CONTRIBUTED CAPITAL, 784,501 $ 19,762 11432_,___. 263 December 31, 1987 S 5, COUNTY OF WELD STATE OF COLORADO COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - a L i i December 31, 1987 Fiduciary Memorandum Proprietary Fund Type Fund Type Total Internal Enterprise Pension December 41 December si Service Fund Trust 1987 1986 WORKING CAPITAL PROVIDED: Net Income (loss) $ (16,780) S 129,972 $ 208,025 $ 321,217 S 3,099,581 Items which did not require __ outlay of working capital: Depreciation 1,273,850 6,928 0 1,280,326 1,245,277 (Gain) on sale of fixed assets (89,807) (452) 0 27,027 (11,329) Working capital provided by operations 1,167,263 136,448 208,025 1,628,570 4,333,529 Contributions from Other Funds 71,606 19,762 0 91,368 102,634 Residual equity transfers 0 128,780 0 128,780 0 Proceeds from sale of assets 174,275 0 0 57,441 236,^^-38 Total Working Capital Provided 1,413,144 284,990 208,025 1,906,159 4,672,401 WORKING CAPITAL APPLIED: Acquisition of fixed assets 1,336,904 31,717 0 1,368,621 1,110,907 Total Working Capital Applied 1,336,904 31,717 0 1,368,621 1,110,907 INCREASE IN WORKING CAPITAL $ 76,240 S 253,273 $ 208,025 S 537,538 3,561,494 CHANGES IN COMPONENTS OF WORKING CAPITAL: Increase (decrease) in current assets: Cash and short term investments $ 10,331 $ 67,904 $ 17,189 $ 95,424 S 533,180 Cash - Other 0 0 120,399 120,399 (26,737) Investments 0 0 64,288 64,288 3,230,880 Receivables: Accounts (1,317) 208,713 (7,003) 200,393 88,923 Property taxes (delinquent) (3,451) 0 0 (3,451) 3,234 Due from other county funds 202,233 90,415 0 292,648 (438,034) Inventories (27,318) 0 0 (28,318) (60,957) Prepaid and other assets 3,708 0 17,863 21,571 202,702 Net Increase in Current Assets 184,186 367,032 212,736 763,954 3,533,191 (Increase) decrease in current liabilities: Accounts payable (132,704) (6,999) (3,571) (143,274) 72,375 Accrued liabilities 9,497 (66,856) 0 (57,359) (15,889) Due to other county funds 21,791 (39,904) (1,140) (19,253) (4,949) Deferred revenue (6,530) 0 0 (6,530) (23,234) Net (Increase) Decrease in Current liabilities (107,946) (113,759) (4,711) (226,416) 28,303 INCREASE IN WORKING CAPITAL S 76,240 .S____1224M. $ 208,025 S 537,538 S 3,561,494 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31 , 1987 Note 1 - Summary of Significant Accounting Policies: The County of Weld was established in 1861 , and on January 1 , 1976 became a home rule county under the provisions of Section 30-35-501 , CRS, 1973. The county operates under an elected commissioner form of government. The county provides the full range of services contemplated by statute or charter. These include general government functions, public protection and safety, health, social services, human resource services, public improvements, road and bridge operations, planning and zoning, and general administrative services. The financial statements of Weld Couuty include those of separately administered organizations that are controlled by or dependent on the County. Control or dependence is determined on the basis of budget adoption, taxing authority, funding, scope of public service, ability to influence operation, designation of management, and appointment of the respective governing board. Based upon the foregoing criteria, the financial statements of the following organizations are included in the accompanying financial statements: Weld County Housing Authority -- The Board of County Commissioners appoints the five member board. The majority of funding provided is from state and federal housing grants of which the County is the primary recipient and sponsor. The operation is reported in the Housing Authority Fund, a Special Revenue Fund. Weld County Public Health Board -- The Board of County Commissioners appoints the seven member board and the Director of Public Health. Substantial funding is provided by the County for the operation of the Public Health Department. The Public Health Department's operations are reported in the Health Fund, a Special Revenue Fund. Weld County Retirement Board -- The Retirement Board consists of five members , four appointed by the Board of County Commissioners and the fifth being the elected County Treasurer. The County funds half of the retirement program which covers substantially all permanent, full-time employees of Weld County. The operation of the plan is accounted for in the Weld County Retirement Fund, as a Pension Trust Fund. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The following organizations are not part of Weld County and are excluded from the accompanying financial statements: North Colorado Medical Center -- The Board of County Commissioners appoints a seven member Hospital Board of Trustees that in turn appoints five of the eleven Normedco Board of Directors. Normedco being a holding company of which the North Colorado Medical Center (NCMC) is a non-profit subsidiary operating the hospital. The county commits minimal capital funds annually (less than 1: of the total NCMC revenues for 1987) . The NCMC has the ability to incur its own debt and its operations are financed totally by patient revenues. Greeley-Weld Airport Authority -- The County Commissioners appoint two of the five Airport Authority Board members. The county has contributed approximately 5% of the funds for capital construction. The Authority has full autonomy under Colorado State law, can incur debt, and funds its operations totally from user fees. Weld Library District -- The County Commissioners, together with the concurrence of the city councils of seven participating municipalities, appoints the seven member Library District Board. The Library District Board has total autonomy under the State Library Act to incur debt, establish budgets, and levy property taxes to support the district's library system. The accounting and reporting policies of Weld County, Colorado conform to generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. The following summary of significant accounting policies is presented to assist the reader in evaluating the County's financial statements. Basis of Presentation: Each fund is an independent : seal and accounting entity with a self-balancing set of acc .:.:nts recording cash and other financial resources together with all related liabilities, residual equities and balances which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. In addition to the funds , self—balancing account groups are established to account for the general fixed assets and general long—term debt of the County. The various funds are grouped into six generic fund types under three broad fund categories as follows: COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Governmental Fund Types: All governmental funds and expendable trust funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance ( net current assets) is considered a measure of "available spendable resources". Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. General Fund: The General Fund accounts for all financial transactions of the County that are not properly accounted for in other funds. Ordinary operations of the County such as public safety, county administration and other activities financed from taxes and general revenue are reflected in this fund. Special Revenue Funds: Special Revenue Funds are established to account for taxes or other earmarked revenue of the County which finance specified activities as required by law or administrative action. Capital Projects Funds: Capital Projects Funds are established to account for financial resources used for the acquisition or improvement of the capital facilities of the County. Special Assessment Funds: Special assessment funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Proprietary Fund Types: All proprietary funds and pension trust funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or non—current) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenue) and decreases (expenses) in net total assets. Internal Service Funds: Internal Service Funds are established to account for goods and services provided to other departments of the County on a cost-reimbursement basis. Enterprise Funds: Enterprise Funds are used to account for operations where the intent of the County is that the costs or services to the general public on a continuing basis be financed or recovered primarily through user charges. Fiduciary Fund Types: Trust and Agency Funds: Trust and Agency Funds are established to record transactions relating to assets held by the County in the capacity of trustee, custodian or agent for individuals, governmental entities and non-public organizations. These include expendable trust, pension trust and agency funds. Fixed Assets, Long-term Liabilities and Long-term Receivables: The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus as discussed above. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Acquisitions of general fixed assets are recorded as capital outlay expenditures within the governmental funds. Public domain ("infrastructure") general fixed assets consisting of roads , bridges and rights—of—way are not capitalized. No depreciation has been provided on general fixed assets. Depreciation of all exhaustible fixed assets used by Internal Service Funds and Enterprise Funds is charged as an expense against their operations. Accumulated depreciation is reported on their related balance sheets. Depreciation has been provided using the straight line method over the estimated useful lives, as follows: Buildings 30 years Land Improvements 20 years Equipment and furniture 3-10 years Recognition of governmental fund type revenue represented by non-current receivables not expected to be collected in the current period is deferred until they become current receivables. Fund balance is reserved for other long-term receivables which will not be collected in the current period. Basis of Accounting: Basis of Accounting refers to when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The governmental funds, expendable trust funds, and agency funds utilize the modified accrual basis of accounting. Linder this method revenues are recognized when measurable and available. Primary revenues susceptible to accrual are taxes, grant revenues and investment earnings. Property tax is reported as a receivable ( less estimated uncollectible amounts) when the levy is certified and as a revenue when collected. Other taxes are also reported as revenue when. collected. Grant revenue is recognized as qualifying expenditures are incurred, and investment earnings are accrued over the life of the investment. Expenditures are generally recognized when the related fund liability is incurred except for long-term liabilities such as accrued vacation and sick leave which is recorded when payable from current available financial resources. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Proprietary funds and pension trust funds follow the accrual basis of accounting whereby revenue is recognized in the year in which it is earned and becomes measurable. Expenses are recorded when liabilities are incurred. Agency funds are custodial in nature ( assets equal liabilities) and do not involve measurement of results of operations. Encumbrances: Weld County utilizes the encumbrance method of recording commitments related to unperformed contracts for goods and services. Under this method, outstanding encumbrances at year end are recorded as a reservation of fund balance since they do not constitute expenditures or liabilities. Ax. appropriation is made in the subsequent year to provide authority to complete the transaction. Budget: An annual budget and appropriation ordinance is adopted by the Board of County Commissioners in accordance with the Color-ado State Budget Act and Weld County Home Rule Charter. The budget is prepared on a basis consistent with generally accepted accounting principles for all governmental, proprietary and expendable trust funds. The accounting system is employed as a budgetary management control device during the year to monitor the individual departments (level of classification at which expenditures may not legally exceed appropriations) . All annual appropriations lapse at year end. The Director of Finance and Administration is authorized to transfer budgeted amounts within departments of each fund. Any revisions that alter the total appropriation for each department must be approved by the County Commissioners through a supplemental appropriation ordinance. During 1987, two supplemental appropriation ordinances were enacted. Budget amounts reported in the accompanying financial statements include these supplemental appropriations. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Property Taxes: Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied no later than November 15 and are payable in the following year in two installments on March 1 and August 1, or in full on April 30. The County, through the Weld County Treasurer, bills and collects its own property taxes as well as property taxes for all school districts, cities and towns and special districts located within the County. In accordance with Section 14-7 of the Weld County Home Rule Charter, all ad valorem tax levies for County purposes, when applied to the total valuation for assessment of the County, shall be reduced so as to prohibit the levying of a greater amount of tax revenue than was levied from ad valorem taxation in the preceding year, plus five per cent (5%) , except to provide for the payment of bonds and interest. The Board of County Commissioners may submit the question of an increased levy to the County Council, and if in the opinion of a majority of the County Council the County is in need of additional funds, the Council may grant an increased levy for the County in such amount as it deems appropriate, and the County is authorized to make such increased levy. Any one capital project requiring a capital expenditure out of funds procured by ad valorem taxation equal to a three mill levy for three years, shall be prohibited unless approved by a majority vote of the qualified electors at a general or special election per Section 14-8 of the Weld County Home Rule Charter. The original January 1, 1987 levies for the applicable funds of the County are as follows: Levy Mills Amount General Fund 11.714 $ 10,620,028 Road & Bridge 3.742 3,392,534 Social Services Fund 2.506 2,271,965 Contingent Fund 1.048 950,127 Capital Expenditures Fund .286 259,291 IGS - Insurance .564 511 ,328 TOTAL 19.860 $ 18,005,273 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Investments: Investments of the pension trust funds are stated at fair market value. Inventories: Inventories of governmental funds, which consist of expendable materials held for consumption, are stated at the lower of cost, determined by the first-in, first-out method or market. These funds follow the consumption method of accounting whereby expenditures are recorded at the time the inventory items are used. Inventories of proprietary funds are recorded at the lower of average cost or market. Interfund Transactions: Interfund transactions resulting from reimbursements, operating transfers, and charges for services rendered, are recorded as due to or due from other county funds. Advance to Other Funds: Non-current portions of long-term interfund loans receivable (reported in "Advance to" asset accounts) are equally offset by a fund balance reserve account which indicates that they do not constitute "available spendable resources" since they are not a component of net current assets. Current portions of long-term interfund loans receivable (reported in "Due From" asset accounts) are considered "available spendable resources". Sick-leave, Vacation Pay and Comp time: Accrued vacation, sick pay and comp time for the governmental funds are accounted for in the General Long-Term Debt Account Group. Sick-leave is earned when vested and recorded as an expenditure in the applicable fund when paid. In the event of retirement or termination, an employee whose date of hire is prior to January 1, 1985 is paid for 50% of accumulated sick-leave hours up to the equivalent of one month. At December 31 , 1987 , the liability for accumulated sick-leave approximated $557,925. Unused vacation time is forfeited after 24 months from date earned. Upon termination or retirement, employees are paid for their accrued vacation. At December 31 , 1987 , the liability for accumulated vacation approximated $440,968. Vacation is recorded as an expenditure in the applicable fund when paid. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Vacation and sick-leave are accrued in the Proprietary Fund Types when earned. Comp time is recorded as an expenditure when paid. At December 31 , 1987 , the liability for accumulated comp time was $56,404. Grant Revenue: A receivable is generally recorded at the time a grant is awarded. Grant revenue is deferred and recognized when qualifying expenditures are incurred. Grant revenue is recognized to the extent of qualified expenditures incurred. Non-federal In—kind Contributions: Volunteers assist the various programs of the Human Resources Fund (a special revenue fund) in providing transportation and various other program functions. The volunteer labor is recognized as a contributed revenue at $3.35 per hour. Certain volunteer labor is recorded at higher rates based upon the individual's professional experience. Volunteer mileage is recorded at 20C per mile. Donated food, clothing, and other goods are recognized as contributed revenue at their fair market value. An offsetting in-kind expenditure is also recorded for the value of the donated goods and services. Total Columns on General Purpose Financial Statements: Total columns on the General Purpose Financial Statements are captioned Memorandum Total to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Note 2 — Ambulance Enterprise Fund: The Ambulance Enterprise Fund was created in 1987 by Resolution of the Board of County Commissioners. The operations of the ambulance department were moved from Governmental (General Fund) to the newly created Enterprise Fund as it more clearly reflects the nature and purpose of its operations. Prior years amounts have not been reclassified as such amounts are not material. Fixed assets with an approximate fair value of $19,762 were transferred to the Ambulance Fund from the General Fixed Asset Account Group and recorded as a contribution of capital. The net assets transferred to the Ambulance Fund from the General Fund of $128,780 are recorded as a residual equity transfer. Additionally the General Fund made an operating transfer of $110,038 to subsidize the Ambulance Fund's operations during 1987. Note 3 - Equity in Pooled Cash and Investments, Cash, and Investments: The County maintains a cash and investment pool that is available for use by all funds except the Pension Trust Fund. Each fund 's share is displayed on the balance sheets as "Cash and Investments". Several of the County's funds also hold investments on their own account. The cash and investments of the Pension Trust Fund are held separately from those of the other County funds. Deposits: At year—end, the carrying amount of the County's deposits was $16,847,403. Of this amount, $3,782, 139 was covered by Federal deposit insurance and the remainder was collateralized with securities held by the pledging financial institution's trust departments or agents in the County's name. An amount representing food stamps held at December 31 , 1987 of $915,258 is not included in the above amount. Investments: Statutes authorize the County to invest in obligations of the U.S. Treasury, agencies, and instrumentalities, commercial paper, and repurchase agreements. The Pension Trust Fund is also authorized to invest in corporate bonds and mortgages. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The County's investments are categorized to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes the investments that are insured or registered or for which the securities are held by the County or its agent in the County's name. Category 2 includes uninsured and unregistered investments for which the securities are held in the County's name. As of December 31 , 1987, the County's investments were held by the County or its agents in the County's name and were insured or registered, where applicable. Investments as of December 31, 1987 were as follows: Carry Market Category 1 Category 2 Amount Value Mutual Funds $ 1,832,676 $ -0- $ 1,832,676 $ 1 ,832,676 Corporate Bonds 5,835,857 -0- 5,835,857 5,835 ,857 Trust Fund 520,403 -0- 520,403 520,403 Mortgages -0- 326,764 326,764 326,764 Treasury Obligations 2,841,746 -0- 2,841,746 2,841,746 Common Stock 9,174,716 -0- 9,174,716 9, 174,716 Federal Funds 2,224,998 -0- 2,224,998 2,224,998 $22,430,396 $ 326,764 $22,757,160 $22,757,160 The Pension Trust Fund owns approximately 53% of the investments in Category 1 and 100% of the investments in Category 2. The County incurred approximately $131 ,754 of losses on sales of investments during the year. Note 4 - Receivables: The allowance for uncollectible receivables consists of the following at December 31 , 1987: Allowance For Fund Uncollectibles General $ 80,641 Special Revenue 5,471,899 Capital Projects 1 ,983 Internal Service 4,073 Trust & Agency 3, 110 Enterprise 181,734 TOTAL • $ 5,743,440 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 5 — Individual Fund Interfund Receivable and Payable Balances: Interfund receivable and payable balances at December 31 , 1987 are as follows: Interfund Interfund Receivables Payables General Fund $ 142,229 $ 376,480 Special Revenue Funds: Road and Bridge Fund 65,503 427,582 Social Services Fund 5,160 34,864 Conservation Fund -0- 8,833 Contingency Fund 29,692 29,692 Public Health Fund 12,000 7 ,037 Human Resources Fund 72,636 42,460 Solid Waste Fund -0- 23,687 Housing Authority Fund 3,179 5,542 Capital Expenditures Fund 80 80 Special Assessment Funds: Indianhead 8,749 8,749 Enterprise Fund: Ambulance 90,415 39,904 Internal Service Funds: Motor Vehicle Fund 323,996 11 ,012 Printing and Supply Fund 25,778 26 Computer Services Fund 175,978 2,251 Insurance Fund 39,983 -0- PBX Fund 29,827 3,202 Trust and Agency Funds: Employee Flexible Spending -0- 1 ,413 Payroll Agency Fund 4,898 70 Retirement Fund -0- 1 , 140 Health Insurance Fund -0- 6,079 TOTAL $1 ,030,103 $1,030,103 Note 6 - Special Assessments: Weld County has four Special Assessment funds which are on the Treasurer's Role for improvements to be paid for by the property owners. • COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The following schedule shows the assessment amount due for each fund: Year Ended Elmore Antelope Indian December 31 , Road Road 5 Hills Head Total 1988 $ 843 $100,000 $ 1,871 $ 706 $103,420 1989 843 100,000 1 ,871 706 103,420 1990 843 100,000 1,871 706 103,420 1991 844 100,000 1 ,871 706 103,421 1992 -0- 100,000 1,871 706 102,577 Thereafter -0- 375 ,000 7,487 3,526 336 ,013 Total Assessment Receivable $ 3,373 $875,000 $16,842 $ 7,056 $902,271 Note 7 - Bonds Payable Bonds outstanding and related interest requirements as of December 31 , 1987 are detailed as follows: Principal Requirement Interest Requirement Certifi- Certifi- cate of Special cate of Special Total Partici- Asses- Total Partici- Asses- Total Annual Year pation ment Principal pation ment Interest Requirement 1988 $ 72,000 $100,000 $ 172,000 $20,103 $ 63,750 $ 83,853 $ 255,853 1989 75,000 100,000 175,000 15,963 54,625 70,588 245,588 1990 80,000 100,000 180,000 11,275 45,250 56,525 236,525 1991 90,000 100,000 190,000 6,075 35,625 41 ,700 231 ,700 1992 -0- 100,000 100,000 -0- 25,750 25,750 125,750 there- after -0- 200,000 200,000 -0- 20,875 20,875 220,875 $317 ,000 $700,000 $1,017,000 $53,415 $245,875 $299,290 $1 ,316,290 The following is a summary of the bond transactions of the County for the year ended December 31, 1987: Certificate of Special Participation Assessment Total Bonds Payable January 1, 1987 $ -0- $ 800,000 $ 800,000 Bonds Issued 1987 317,000 -0- 317 ,000 Bonds Retired 1987 -0- (100,000) (100,000) Bonds Payable December 31 , 1987 $317,000 $ 700,000 $1 ,017,000 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued` Year Ended December 31 , 1987 On December 1 , 1987, the County legally issued Certificates of Participation in the amount of $317,000. The issue was the result of construction of two classrooms and library in southern Weld County. Principal is paid annually on December 1 , with interest rates varying from 5.75% to 6.75%. The net effective interest rate is 7. 616545%. At December 31 , 1987, there are $700,000 of special assessment bonds payable. The bonds were issued to pay for road construction and are to be repaid through collection of an assessment of the property owners (see Note 5) . The bonds which bear interest between 8.5% - 10.5% mature as follows: $100,000 each year from 1988 through 1991 and $300,000 thereafter. Note 8 - Transfers: Cash is transferred from one fund to support expenditures of other funds in accordance with authority established for the individual fund. Transfers within fund types have been eliminated. A summary of interfund transfers by fund type is as follows: TRANSFER TO TRANSFER FROM Special General Revenue Total General $ -0- $ 108,393 $ 108,393 Special Revenue 1 ,075,155 -0- 1 ,075,155 Special Assessment -0- 1 ,693 1 ,693 Proprietary 210,038 -0- 210,038 Total $1 ,285,193 $ 110,086 $1,395,279 Note 9 - Food Stamps Food Stamp activity for 1987 is not shown as revenue and expenditures in the financial statement as it is not a budgeted item. The food stamps issued amounted to $5,198,220 for the year 1987. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Note 10 - Changes in General Fixed Assets: A summary of changes in general fixed assets follows: Balance Balance 1/1/87 Additions Deletions 12/31/87 Land $ 1,588,952 $ 506,260 $ -0- $ 2,095,212 Improvements other than buildings 218,011 12,909 -0- 230 ,920 Buildings 18,738,024 463,394 772,765 18,428 ,653 Machinery and equipment 3 ,048,322 806,905 315,304 3,539,923 Total $23,593,309 $1,789,468 $1 ,088,069 $24,294,708 Note 11 - Capital Lease Obligation: The County leases two phone systems under agreements accounted for as capital leases. The following is a schedule of the future minimum lease payments under the capitalized leases together with the present value of the net minimum lease payments as of December 31 , 1987. Human Social Year Ending December 31 , Resources Services Total 1988 $ 17,802 $ 29,645 $ 47,447 1989 17,802 29,645 47,447 1990 16,318 29,645 45,963 1991 0 29,648 29,648 1992 0 27,262 27,262 Thereafter 0 0 0 Total minimum lease payments 51 ,922 145,845 197,767 Less: Amount representing interest (6,817) (30,617) (37,434) Present value of net minimum lease payments $ 45,105 $115,228 $160,333 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 12 — Tax Anticipation Notes: In 1987 Weld County issued tax anticipation notes, Series 1987, in the amount of $2,990,000. Weld County was authorized in accordance with Section 29-15-1, CRS, 1986, to issue by resolution tax anticipation notes in an amount not to exceed fifty percent of all taxes estimated by the County in the current fiscal year. At December 31, 1987 all bonds were due and payable. $1 ,905,000 of the bonds were not redeemed by bondholders until 1988. Interest ceased to accrue on the redemption date of December 31 , 1987. Note 13 - Changes in Long-Term Debt: The following is a summary of long-term debt transactions of the County of Weld for the year ended December 31, 1987: Balance Balance 1/1/87 Additions Reductions 12/31/87 Certificate of Participation (Note 7) $ -0- $317,000 $ -0- $ 317,000 Phone Lease Obligation (Note 11) 190,481 -0- 30,148 160,333 Vacation & Sick Leave 1 ,063,546 -0- $ 8,253 $1 ,055,293 TOTAL $1 ,254,027 $317,000 $ 38,401 $1 ,532,626 Sick leave and vacation accruals for Governmental Fund types are recorded in this -fund together with the capital lease obligations and certificate of participation for government funds. Weld County has no general bonded indebtedness. In accordance with Section 30-35-201 , CRS, 1973, the limit of Weld County's general bonded indebtedness is 3% of the assessed valuation or $27, 198,297 as of December 31, 1987. Note 14 - Fund Balance Reserves: Reserves for the County of Weld consist of: Reserve for Advances - to Special Assessment Funds: These reserves were established in conjunction with an assessment of a designated group of taxpayers. As the assessments are collected, the advance is repaid. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Reserve for Encumbrances: These reserves are established to record purchase orders and commitments outstanding for which the related goods/services have not been received at year end. Reserve for Prepaid Items: These reserves are established to record all prepaid items. Reserve for Inventories: These reserves are established to record the total level of inventories. Reserve for Employee Benefits: These reserves are established to record the Pension Benefit obligation of the Weld County Retirement Plan. Reserve for Advances — to Internal Service Funds: These reserves were established to record a temporary loan of cash flow for a supply inventory. Designated Fund Balance: Fund balance designated for subsequent year's expenditures represents fund balance commitments for appropriated expenditures in excess of anticipated revenue for the year ending December 31, 1988. The following is a summary of all reported reserves by fund type: Special Capital Trust and Reserves General Revenue Protects Agency Total Encumbrances $ 45,297 $ 537,293 $144,351 S 60 $ 727,001 Prepaid Items 29,244 53,791 -0- -0- 83,035 Inventories 31,339 740,778 -0- -0- 772, 117 Advances to Special Assess- ment Funds 27,289 75,000 -0- -0- 102,289 Advances to Internal Service Funds 80,000 -0- -0- -0- 80,000 Employee Benefits -0- -0- -0- 20,121,007 20,121 ,007 TOTAL $213, 169 $1 ,406,862 $144,351 $20, 121,067 $21 ,885,449 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 15 - Other Required Individual Fund Disclosures: The deficit fund balance of the Special Assessment Funds (Improvement District Road 5 - $652,771 , Indianhead Special Assessment - $6,350 and Antelope Hills Special Assessment - $11 ,748) arose because of the application of generally accepted accounting principles to the financial reporting for such funds. Special assessments are recognized as revenue only to the extent that individual installments are considered to be available, spendable resources. The deficit will be reduced and eliminated as deferred special assessment installments become available, spendable resources. The deficit fund balance of Social Services (Special Revenue) cf $122,195 was caused by program cost increases in areas over state reimbursement. This shifted the burden for these expenses to the local tax source which was not sufficient to cover the overage. Additional dollars will be added to the 1988 allocation to support the burden created by these disallowed reimbursable costs. Excesses of expenditures over appropriations in individual funds are as follows: Revised Over- Appropriation Expenditures expenditure Special Revenue Funds: Human Resources $ 3,845,920 $ 3,856,574 $ (10,654) Enterprise Funds: Ambulance $ 956,500 $ 1,175,257 $ (218,757) The overage for the Human Resources fund was caused due to an increase in the Headstart expenditure. The overage in the Ambulance Fund is attributed to first year start-up cost. In-kind contributions and expenditures are not included as budgetable items. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The District Court, County of Weld, State of Colorado in a Court Order dated January 28, 1983 in Case Number 80CV1091 decreed that in accordance with Section 29-1-111.5, CRS, 1973, Weld County can designate specific ownership tax directly to the Road and Bridge Fund. In accordance with Section 8-44-110, CRS, 1973, a property tax mill levy may be used to fund the self-insurance program for local county activities. Note 16 - Weld County Retirement Plan: The Weld County Retirement Plan is a trusteed defined benefit pension plan. All full time employees (except officers and employees of any Federally-funded program which excludes them) are required to participate in the plan. At December 31, 1987 the number of participating employees was 835, and the membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them: 185 Current Employees: Vested: 291 Nonvested: 359 TOTAL 835 The Weld County Retirement Plan, established in 1969 provides for pension, death, and disability benefits. All benefits are fully vested after 8 years of service, except elected officials, who are fully vested regardless of years of service. Employees are required to contribute 6.0%, by directive of the retirement board, to the Retirement Plan which is equally matched by the County. Contributions during 1987 for both the County and the employees totalled $1 ,675,355. Total covered payroll for year ended December 31 , 1987 was $13,962,091. The Weld County Retirement Plan is accounted for using the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which employee services are performed. Investments are reported at market. Investment income is recognized over the life of the investments. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1986 The amount shown below as "Pension Benefit Obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the Plan. The "Pension Benefit Obligation" was determined as part of an actuarial valuation at January 1, 1987. The actuarial assumptions used include: A) Rate of return on the investment of present and future assets of 7.5% per year compounded annually, and 5) Earnings progression at various rates depending on attained age from 8.5% for age 25 to 6.3% for age 64. At January 1 , 1987 there are assets in excess of the pension benefit obligation of $4,284,496 as follows: Pension Benefit Obligation: Retirees and Beneficiaries Currently Receiving Benefits $ 3,988,439 Terminated Vested Employees Not Yet Receiving Benefits 66,301 Current Employees: Accumulated Employee Contributions Including Allocated Investment Income 4,507, 102 Employer Financed Vested 5,287,047 Employer Financed Nonvested 1 ,987,622 Total Pension Benefit Obligation: 15,836,511 Net Assets Available for Benefits (Market Value) : 20,121,008 Assets in Excess of Pension Benefit Obligation: S 4,284,496 Information on the effects of current year changes in actuarial assumptions and benefit provisions on the pension benefit obligation is not presented as it is not available. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Note 17 - Deferred Compensation: Effective January 1, 1984, as allowed by the provisions of Section 24-52-101 , et. seq. , CRS, 1973, and by Section 457 of the Internal Revenue Code of 1954, as amended, the Couuty of Weld established the Deferred Compensation Plan of the County of Weld. The plan is a special voluntary benefit plan for public employees, in which a portion of the employee's earnings car. be set aside and invested, free of current income taxes. Up to 25% of the employee' s gross income can be deferred, not to exceed $7,500 annually. Compensation deferred by a participant under the plan and earnings on deferred amounts must remain solely the property of Weld County until paid to the participant or the participant' s beneficiary. The County holds these funds in custody for the participants and exercises no discretion over the investment of the funds. The participants election of investments determines the risk factor he is willing to absorb. Investments are recorded at market value. Note 18 - Contingent Liabilities: The County is currently the defendant in several lawsuits. Based upon the opinion of legal counsel, these claims would be covered by insurance and/or there does not appear to be a threat of significant liability to the County. Self-insurance for liability exposure is maintained by the Insurance Fund in the Internal Service Fund group. Self-insurance is in effect for incidents up to June 30, 1986 for property, casualty, and liability losses up to $100,000 per occurrence. Losses greater than $100,000 per occurrence, and those in excess of the aggregate stop loss, were insured by private insurance companies. County-wide annual aggregate stop loss limit was $340,000. Effective July 1 , 1986, Weld County joined Colorado Counties, Incorporated's Casualty and Property Pool (CAPP) which covers all casualty and property claims with a $500 deductible for first party property claims. Worker's Compensation remains self-insured with a $200,000 per occurrence and $200,000 aggregate annual stop loss limit. Private insurors cover claims above the stop loss limit for all types of insurance. The County participates in a number of federal and state grant programs. Principal funding agencies include the Office of Revenue Sharing, Department of Labor, Community Services Administration, Department of Health and Human Services, Department of Housing and Urban Development, and Area Agency on Aging. These programs are subject to program compliance audits by the grantors or their representatives. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the County expects such amounts, if any, to be immaterial. OFFERING CIRCULAR New Issue Not Rated In the opinion of Bond Counsel, interest on the Notes is excluded from gross income for federal income tax purposes, is exempt from Colorado income tax and is not an item of preference for purposes of computing the individual or corporate alternative minimum tax, to the extent, upon the conditions and subject to the limitations stated under 'TAX EXEMPTION". $3,950,000 WELD COUNTY, COLORADO Tax Anticipation Notes, Series 1989A Dated: January 25, 1989 Due:December 29, 19S9 The Notes are being issued as fully registered Notes without coupons. Interest, at the rate set forth below, is computed on a basis of a 360-day year and is payable on December 29, 1989. The Notes are not subject to redemption in whole or in part at any time. AMOUNT MATURITY RATE PRICE $3,950,000 12-29-89 6.60 100% The Notes are payable solely from ad valorem taxes on real and personal property previously levied, investment proceeds on such taxes and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County in the current fiscal year and credited to the General Fund after the issuance of the Notes. The Notes are offered when, as, and if issued by the County subject to the approving legal opinion of Bond Counsel, Ballard, Spahr, Andrews &Ingersoll, Denver, Colorado. The matters passed upon by Bond Counsel do not extend beyond the validity and enforceability of the Notes and the tax treatment of interest thereon under Federal and State of Colorado income tax laws, and Bond Counsel has no responsibility for the accuracy, completeness of fairness of statements made to any person in connection with any offer or sale of the Notes in this document or otherwise. BOETTCHER & COMPANY, INC. Certain of the information contained herein has been obtained from the issuer of the Notes identified herein (the "County") and other sources which are believed to be reliable. Such information is neither guaranteed as to accuracy or completeness nor to be construed as a representation by Boettcher & Company, Inc. (the "Underwriter"). The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Offering Circular nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County, since the date hereof. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which it is unlawful for any person to make such an offer, solicitation or sale. No dealer, broker, salesman or other person has been authorized to give any information or to make any representations other than as contained in this Offering Circular. If given or made, such other information or representations must not be relied as having been authorized by the County or the Underwriter. ce summaries of various statutes, resolutions, and other documents contained herein are :tended as summaries only and are qualified in their entirety by reference to the originals hereof, copies of which are available from the Underwriter or the County during the period of the original offering of the Notes, upon reasonable request and payment of the reasonable costs of copying the same. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE NOTES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING,IF COMMENCED,MAY BE DISCONTINUED AT ANY TIME. 2 TABLE OF CONTENTS PAGE INFORMATION 4 THE NOTES 4 Description 4 Redemption Provisions 4 Authorization 4 Security 4 Investment of Proceeds THE COUNTY 5 The Board of County Commissioners 5 FINANCIAL INFORMATION CONCERNING THE COUNTY 6 General Fund 6 Property Tax Collection S Historical Property Tax Date S DEBT STRUCTURE OF THE COUNTY 9 Direct Indebtedness 9 STATISTICAL INFORMATION CONCERNING THE AREA OF THE COUNTY 9 Population and Income 9 Effective Buying Income 10 Retail Sales 10 Bank Deposits 11 Employment 11 TAX EXEMPTION 11 LEGAL MA 1'1 ERS 12 RATING 12 UNDERWRITER 12 APPENDIX A Audited Financial Statements of the County for the Period Ending December 31, 1987 APPENDIX B Cashflow Summary 3 INFORMATION This Offering Circular is provided to furnish certain information in connection with the issuance by Weld County, Colorado (the "County") of its Tax Anticipation Notes, Series 1989A. in the aggregate principal amount of$3,950,000 (the "Notes") to be issued pursuant to a Resolution (the "Resolution") adopted by the Board of County Commissioners of the County on January 11. 1959. The Notes are being issued to pay duly budgeted current General Fund expenses. Brief descriptions of the County and the Notes are included in this Offering Circular. Such descriptions do not purport to be comprehensive or definitive. All reference herein to the Resolution, the Notes, and other documents are qualified in their entirety by reference to such documents or to the form of the Notes, copies of which are available for inspection in the office of the County. THE NOTES Description The Notes are to be issued by the County in an aggregate principal amount of 53,950.000, to he dated January 25, 1989, to be registered as to principal and interest, to bear interest from issue date to maturity at the rate per annum set forth on the Cover Page hereof, computed on the basis of a 360-day year. The Notes will pay interest and mature on December 29, 1989. The principal of and interest on the Notes are payable at maturity, upon surrender of the Notes, to the office of the County Treasurer, either by check or draft mailed to the registered owner or by wire transfer to such bank or depository as the registered owner shall designate. Redemption Provisions Notes of this issue are not subject to redemption prior to maturity. Authorization The Notes are issued pursuant to the Resolution and the Constitution and laws of the State of Colorado, including, in particular, the provisions of the Tax Anticipation Note Act (the "Act"), Section 29-15-101 et seq., Colorado Revised Statutes, as amended. The Act permits the County to issue tax anticipation notes by resolution in an amount not to exceed fifty percent (50%) of all taxes estimated by the County to be received in the current fiscal year. Security The proceeds of the Notes are to be deposited in the General Fund of the County and are to be used solely for the payment of duly budgeted current expenses when and to the extent that other moneys on deposit in the General Fund are insufficient therefor; provided however, that any portion of the proceeds may be temporarily invested in securities or investments which are lawful investments for the County. All ad valorem personal and real property taxes ("Taxes") levied for General Fund purposes (except Taxes collected for retirement of existing debt,) investment 4 issuance of the Notes are to be deposited in a restricted account within the General Fund to be known as the 'Tax Anticipation Notes, Series 1989A, Principal and Interest Redemption Account" (the "Note Account") until such time as the moneys are sufficient to pay when due the principal of and interest on the Notes. All moneys in the Note Account not in excess of the amount required to pay when due the principal of and interest on the Notes, and all securities in which the same may be invested from time to time, are pledged to secure the payments of the principal of and interest on the Notes. Investment of Proceeds Proceeds of the Notes and moneys held in the Note Account will, pending their use, be invested in securities which are legal investments for Colorado counties or deposited in eligible public depositories, with such deposits being insured or collateralized as required by law. THE COUNTY Weld County, established in 1861, is located at the north central part of the State and is the third largest county in Colorado, covering an area of approximately 4,033 square miles. The surface is level to rolling prairies with low hills near the western border. Elevations range from 4,400 to 5,000 feet. The South Platte River and its tributaries, the Cache La Poudre, Big Thompson, Little Thompson, Boulder, and St. Vrain enter from the south and west and leave the county on the east. Weld County is an agricultural region, ranking fourth in the nation in dollar value of sales according to the government's 1982 farm census rankings. More than 85 percent of its area is devoted to irrigated and dryland farming and livestock raising. Weld County incorporates one of the nation's largest irrigated areas: 647,000 acres of the 2,500,000 acres in Weld County are irrigated by a combination of mountain run-off which is controlled by eight major irrigation companies and 4,000 wells. The reservoir storage and stream run-off supply an annual average of 900,000 acre feet while the wells supply approximately 250,000 acre feet of water. The Colorado Big Thompson Water Diversion Project supplies approximately 300,000 acre feet of water annually. Water is diverted to farms and ranches via an extensive system of irrigation canals. Oil and gas play an important role in the economic picture of Weld County. Wattenberg Gas field, part of which is located in the southern part of Weld County, was discovered by Amoco Oil Company, the prime developer of the field. Amoco Oil has estimated that this field contains approximately 400 billion feet of gas reserves. The gas that is being produced by the Wattenberg Field is delivered to the Public Service Company of Colorado. This potentially great gas accumulation covers nearly 1,000 square miles. Wattenberg Field is also producing some oil. Development of oil and gas wells has had an increasingly more significant impact on the economy of Weld County in the past ten years. The Board of County Commissioners The County is governed by a five-member Board of County Commissioners (the "Board") whose members are elected on a district system by the registered, qualified electors of the County for staggered four-year terms of office. The Board is a policy-making body whose primary functions are to establish policies for the County and oversee the property and facilities and financial affairs of the County. 5 The present directors and officers of the Board and the expiration of their respective terms of office are as follows: Term Expires Name Tai le_ December 31 C.W. Kirby Chairman 1992 Jacqueline Johnson Pro-tern 1990 Gene R. Brantner Commissioner 1990 George Kennedy Commissioner 1992 Gordon E. Lacy Commissioner 1992 FINANCIAL INFORMATION CONCERNING THE COUNTY The financial operations of the County are, pursuant to State law, conducted primarily through its General Fund. General Fund The General Fund is the major operating fund of the County, providing most of the resources for the County's general operations. General Fund revenues amounted to $16,404,647 in 1987, a decrease of 3.1% from 1986. The decrease is attributed to the transfer of the ambulance service revenues from the General Fund to an Enterprise Fund. With the ambulance service revenues adjusted out of the 1986 figures there was a 2.2% increase in the 1987 General Fund revenue. The revenues derived from various sources are reflected in the following table: 6 1985 1926 1987 REVENUE: Taxes S 9,873,318 $10,258,786 $10,793,324 Licenses & Permits 368,239 363,103 382,707 Intergovernmental Revenue 891,822 1,144,412 879,166 Charges for Services 1,1.57,164 1,352,129 451,484 Fines and Forfeitures 69,455 13,250 76,465 Miscellaneous Revenue 2,190,774 2,301,231 1,056,616 Earnings on Investments 1,052,991 Fee Accounts 1.631,937 1.547150Q 1.711.894 Total Revenue $16.182.709 $16.928.147 S16.404,647 EXPENDITURES: Current Operating: General Government $6,120,746 $6,525,593 $6,819,165 Public Safety 7,283,096 7,496,132 6,924,599 Public Works 518,699 482,827 522,724 Public Health & Welfare 116,045 169,106 124,536 Culture & Recreation 95,622 - 86,562 273,702 Conservation of Natural Resources -0- 6,025 Economic Assistance 10,264 -0- -0- Capital Outlay -0- 69,650 348,145 Debt Service 110,985 170,977 126,088 Miscellaneous 658.425 186.978 273.702 Total Expenditures $14.913.833 $15.293.840 515.234.669 EXCESS (DEFICIENCY OF REVENUE OVER EXPENDITURES) $ 1.268,826 $ 1.634.297 $ 1.169,978 OTHER FINANCING SOURCES (USES): Operating Transfers-In $ 310,000 $ 59,140 $ 2,129,550 Operating Transfers-Out (1.986.122) (1.282.370) (1.285.193) Total Other Financing Sources (Uses) 5(1.676.122) 5(1.223.230) $(1.176.800) EXCESS OF (DEFICIENCY) OF REVENUE AND OTHER SOURCES OVER EXPENDITURES AND 411.067 6 2 OTHER USES 0407,2961 FUND BALANCE, (Deficit), Beginning of Period $ 1.145.510 $ 738.214 51.149.280 Equity Transfers to ( 780) Other Funds FUND BALANCE (Deficit), End of Period 738 214 1149 282 S 1.013,678 7 Property Tax Collection Taxes levied in one year are collected in the next; thus 1988 taxes will be collected in 1989. Taxes are said to be due January 1 in the year of collection; however, they may be paid in two installments, without interest penalty, if the payments are made by February 28 and by July 31 of the collection year. The property owner may elect to make only one payment, and if made by April 30, it is also free of interest penalty. All taxes levied on property, together with interest thereon and penalties for default, as well as all other costs of collection, constitute a perpetual lien on and against the property taxes, and such lien is on a parity with the tax liens of other general taxes. In the event collection of property taxes becomes impossible, the County Treasurer may distrain, seize, and sell property to enforce the collection of delinquent taxes on such property, as well as conduct a regular tax sale to enforce the collection of delinquent taxes on real property. There can be no assurance that the value of specific property, in the event of foreclosure and sale by the Weld County Treasurer, would be sufficient to produce the amount required with respect to taxes levied by the County and by overlapping taxing entities. Property Tax Levies and Collections in the County Collection Total Tax Total % of Year Levy Collected Collections 1978 $10,618,807 $10,558,800 99.43 1979 11,144,614 11,101,916 99.62 1980 11,708,099 11,660,552 . 99.59 1981 12,622,216 12,596,620 99.68 1982 13,252,865 13,169,249 99.37 1983 14,399,734 14,307,719 99.36 1984 15,119,720 14,985,503 99.11 1985 15,875,706 15,469,833 97.44 1986 17,147,925 17,013,025 99.20 1987 18,005,273 17,756,037 98.60 Source: Weld County 1987 Annual Financial Report Historical Property Tax Data Set forth below is certain historical information concerning mill levies, assessed valuation and property tax collection for the County. Mill Levy History 1982 - 1989 1982 17.172 1983 17.369 1984 19.342 1985 19.342 1986 19.342 1987 19.860 1988 17.208 1989 19.268 Source: State Department of Property Taxation 8 Total Assessed Valuation of the County 1980 - 1988 Budget Assessed Percent Year Valuation Increase 1980 $ 677,285,480 9.8% 1981 731,849,970 93% 1982 771,771,770 9.5% 1983 870,453,500 8.9% 1984 820,747,830 (1.1%) 1985 886,564,250 93% 1986 813,134,000 (83%) •1987 1,118,963,490 37.6% 1988 1,062,703,770 (5.0%) *Reassessment mandated by Colorado statute changed the base year of market value for valuation from 1977 in 1986 to 1985 in 1987. Source: Weld County 1987 Annual Financial Report DEBT STRUCTURE OF THE COUNTY Direct Indebtedness The County currently has no outstanding debt. STATISTICAL INFORMATION CONCERNING THE AREA OF THE COUNTY Population and Income The following table presents the estimates of the populations of the State of Colorado and Weld County developed by the U.S. Bureau of the Census. Population Estimates Weld County Colorado 1960 72,344 1,753,947 1970 89,297 2,207,259 1980 123,438 2,889,735 1985 133,922 3,229,621 1986 137,230 3,296,269 1987 140,200 3,267,000 Source: U.S. Bureau of the Census Colorado Division of Local Governments 9 ve Buying Income ._s & Marketing Management's annual surveys of buying power have reported that the following median ..ousehold effective buying income ("EBI") levels for the six-year period shown. Median Household EBI Weld County Colorado 1982 18,577 22,589 1983 20,441 24,713 1984 22,249 26,549 1985 26,562 31,759 1986 21,752 26,397 1987 22,164 26,775 • Percent of Households by Effective Buvine Income Groups - 1988 Weld County Colorado EBI Group Households Households $10,000 - 19,999 24.7 21.6 20,000 - 34,999 30. 27.6 35,000 - 49,999 15. 18.3 50,000 and Over 10.1 17.3 Source: Sales & Marketing Management's 1987 Survey of Buying Power, July, 1988 Retail Sales Retail Sales Weld County 1980 $ 781,318,019 1981 909,429,330 1982 995,204,398 1983 1,022,894,704 1984 1,111,048,467 1985 1,118,318,553 1986 1,044,149,916 1987 1,095,656,542 Source: Colorado Department of Revenue 10 Bank Deposits Bank Deposits - Weld County 1980 524,243,000 1981 560,351,000 1982 602,286,000 1983 673,108,000 1984 690,983,000 1985 695,608,000 1986 611,319,000 1987 783,258,000 Source: Sheshnoffs Banks of Colorado Employment Annual Average Labor Force Estimates Weld County Total Total Total Percent Labor Force Employed Unemployed Unemployed 1981 61,024 57,277 3,747 6.1 1982 61,718 57,133 4,585 . 7.4 1983 63,294 59,113 4,181 6.6 1984 64,265 60,416 3,849 6.0 1985 65,318 60,971 4,347 6.7 1986 63,849 56,847 7,002 11.0 1987 66,205 60,776 5,429 8.2 Source: Colorado Division of Employment TAX-EXEMPTION In the opinion of Bond Counsel, assuming the accuracy of certain certifications of the County regarding federal income tax matters and continuing compliance with the requirements of the Internal Revenue Code of 1986, as amended, interest on the Notes is excluded from gross income for federal income tax purposes and is not an item of preference for purposes of either the individual or corporate alternative minimum tax under the laws and regulations of the United States of America as presently enacted and construed. However, interest on Notes held by corporations (other than regulated investment companies, real estate investment trusts, real estate mortgage investment conduits and certain S corporations) may be indirectly subject to the alternative minimum tax and the environmental tax because of its inclusion in the reported income or earnings and profits of corporations, and interest on Notes held by foreign corporations may be subject to the branch profits tax. In the opinion of Bond Counsel, the Notes are "qualified tax-exempt obligations" under Section 265(b) of the Code for purposes of determining the deductibility of interest expense of banks and other financial institutions holding the Notes. 11 Ownership of tax-exempt obligations may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, S corporations, individual recipients of Social Security or Railroad Retirement benefits, foreign corporations engaged in a trade or business in the United States and taxpayers who may be deemed to have incurred or continued debt to purchase or carry such obligations. Bond Counsel will express no opinion with respect to such consequences. In the opinion of Bond Counsel, interest on the Notes is also exempt from Colorado income taxation under the laws of the State of Colorado as presently enacted and construed. LEGAL MATTERS Legal matters incident to the authorization and issuance of the Notes are subject to approval by Ballard, Spahr, Andrews & Ingersoll, Denver, Colorado, Bond Counsel, whose approving opinion on such matters is expected to state in substance that the Notes are valid and binding obligations of the general fund of the County payable solely from ad valorem taxes on real and personal property previously levied, income and investment proceeds on such taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses, received by the County and credited to its general fund in the current fiscal year after the issuance of the Notes and that the Notes are enforceable according to their terms, except to the extent such enforcement is limited by the bankruptcy and other laws affecting the enforcement of creditors' rights, by the reasonable exercise of the police power of the State of Colorado, and by the exercise of the powers delegated to the United States of America by the Federal Constitution. RATING These Notes have not been rated by any municipal rating service. UNDERWRITER The Notes are being purchased by Boettcher & Company, Inc. at par value. The County has agreed to pay the Underwriter a fee of $5,925. The Underwriter has advised the County that it intends to makea public offering of the Notes at the price set forth on the cover hereof. 12 APPENDIX A ueiu lid Haskins+Sells Sells 1560 Broadway. Suite 1800 One Civic Center Pia_a Denver, Colorado 80202-5151 (3031837-3000 ITT Te!ex: 49956O+ Board of County Commissioners County of Weld, Colorado Greeley, Colorado We have examined the general purpose financial statements of the County of Weld, Colorado as of and for the year ended December 3i , 1987 as listed in the table of contents. 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 general purpose financial statements referred to above present fairly the financial position of the County of Weld, Colorado at December 31 , 1987, and the results of its operations and the changes in financial position of its proprietary fund types and pension trust fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining individual fund and individual account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the County of Weld, Colorado. Such information has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. Our examination did not include the information presented in the Statistical section and, accordingly, we express no opinion on it. 9. C1 41 � 2tiel�� DELOITTE HASKINS AND SELLS Denver, Colorado May 20, 1988 COUNTY OF WELD STATE OF COLORADO COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1987 Governmental Fund 1%mes Special Capital Special General Revenue Projects Assessment ASSETS ASSETS: Cash and short term investments S 3,373,743 $ 5,013,514 $ 1,514,833 S 53,754 Cash - other 28,125 940,152 3,925 0 Investments 0 0 0 0 Receivables (net of allowance for uncollectibles): Current property tax 11,247,635 6,614,857 532,000 0 Delinquent property tax 182,377 107,662 5,255 0 Accounts 171,904 284,075 1,030 0 Special assessments 0 0 0 902,271 Due from other county funds 142,229 188,170 80 8,749 Due from other governmental units 220,519 1,990,944 0 0 Advances to other funds 107,271 75,000 0 C Inventories 31,339 740,778 0 0 Amount to be provided for retirement of general long-term debt 0 0 0 0 Prepaid and other assets 46,232 59,787 0 0 Land 0 0 0 0 Buildings 0 0 0 0 Improvements other than buildings 0 0 0 0 Machinery and equipment 0 0 0 0 Accumulated depreciation 0 0 0 0 TOTAL ASSETS S 15,551,374 $ 16,014,939 S 2.057.123 S 964,774 LIABILITIES AND FUND BALANCE LIABILITIES: Voucher and warrants payable $ 153,084 $ 427,704 $ 60,397 S 0 Accrued liabilities 580,658 439,681 1,675 0 Due to other governments 15,075 1,474,278 0 0 Due to other county funds 376,480 579,697 80 8,749 Deferred revenue 11,407,008 6,809,591 537,255 823,850 Unexpended grant revenue 100,391 1,261,659 0 0 Other liabilities 0 69,936 0 0 Advance from other funds 0 0 0 102,271 Retainage payable 0 0 72,014 0 Bonds payable 1,905,000 0 0 700,000 General long term debt - 0 0 0 0 Deferred compensation payable 0 0 0 0 Total Liabilities $ 14,537,696 $ 11,062,546 $ 671,421 $ 1,634.870 FUND EQUITY: Contributed capital S 0 $ 0 $ 0 S 0 Retained earnings 0 0 0 0 Investment in fixed assets 0 0 0 0 Fund Balances: Reserved 213,169 1,406,862 144,351 0 Unreserved: Designated for subsequent year's expenditures 190,108 1,115,348 1,241,351 0 Undesignated 610,401 2,430,183 0 (670,096) Total Fund Equity (deficit) S 1,013,678 S 4,952,393 L1181,292. S (670,096) TOTAL LIABILITIES AND FUND EQUITY S 15,551,374 S 16,014,939 S 2,057,123 S 964,774 See Notes to Financial Statements Proprietary Fiduciary Fund Type Fund Type Account Groups Memorandum Total Enterprise Internal Trust and General General December J1 December 31 Fund Service Agency Fixed Assets Long Term Debt 1967 1986 S 67,904 $ 1,457,062 $ 7,399,752 S 0 $ 0 $ 18,880,562 $ 18,774,571 0 7,500 127,395 0 0 1,107,097 65,131 O 0 20,532,162 0 0 20,532,162 20,314,295 0 511,095 0 0 0 18,905,587 18,005,321 0 8,954 1,965 -0 0 306,213 404,559 208,713 55,239 264,448 0 0 985,409 856,411 O 0 0 0 0 0 0 902,271 1,006,758 90,415 595,562 4,898 0 0 1,030,103 676,621 0 0 0 0 0 2,211,463 2,269,202 0 0 0 0 0 182,271 186,758 0 147,591 0 0 0 919,708 1,044,913 0 0 0 0 1,532,630 1,532,630 1,254,028 O 203,305 58,770 0 0 368,094 298,405 O 712,970 0 2,095,212 0 2,808,182 2,283,332 0 750,220 0 18,428,653 0 19,178,873 19,435,227 0 250 265 237 356 0 19,345 0 230,920 > > 31,717 11,750,493 0 3,539,923 0 15,322,133 14,197,521 (6,476) (7,001,654) 0 0 0 (7,008,130) (6.307.340) 1_2112.L__273 S 9,217,682 118,219.21.0 S 24,294,708 S 1,532,630 S 98,414,893 $ 95,003,069 $ 6,999 $ 778,024 $ 738,156 $ 0 S 0 $ 2,164,364 $ 1,560,181 66,856 160,294 0 0 0 1,249,164 1,111,335 0 0 3,143,978 0 0 4,633,331 4,792,509 39,904 16,491 8,702 0 0 1,030,103 676,619 O 550,030 1,965 0 0 20,129,699 19,440,361 O 0 0 0 0 1,362,050 1,283,881 0 0 0 0 0 69,936 70,536 O 80,000 0 0 0 182,271 186,758 0 0 0 0 0 72,014 25,440 0 0 0 0 317,000 2,922,000 2,250,000 O 0 0 0 1,215,630 1,215,630 1,254,028 O 0 663,105 • 0 0 663,105 509,526 $ 113,759 $ 1,584,839 $ 4,555,906 $ 0 $ 1,532,630 $ 35,693,667 $ 33,161,174 $ 19,762 $ 5,784,501 $ 0 $ 0 $ 0 $ 5,804,263 $ 5,712,895 258,752 1,848,342 0 0 0 2,107,094 1,865,122 0 0 0 24,294,708 0 24,294,708 23,593,310 O 0 20,121,067 0 0 21,885,449 22,967,874 0 0 0 0 0 2,547,292 1,421,987 0 0 3,712,417 0 0 6,082,420 6,280,707 $ 278,514 $ 7,632,843 1111.132L-484. S 24,294,708 $ 0 $ 62,721,226 S 61.841,895 $ 392,273 1-1222-2±-81 S-1112.21-9-111-30 S 24,294,708 S 1,532,630 $ 98,414,893 $ 95,003,069 COUNTY OF WELD STATE OF COLORADO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS December 31, 1987 Governmental Fund Types Special Capital Special General Revenue Projects Assessment REVENUES: Taxes $ 10,793,324 S 7,770,984 S 280,150 S 0 Licenses and permits 382,707 230,319 0 0 Intergovernmental revenue 879,166 19,910,143 0 0 Charges for services 451,484 692,078 6,155 0 Fines and forfeitures 76,465 0 0 0 Miscellaneous revenue 1,056,616 173,156 2,027,000 199,907 Fee accounts 1,711,894 0 0 0 Earnings on investments 1,052,991 0 1,030 0 Total Revenues 16,404,647 28,776,680 2.314,335 199,907 EXPENDITURES: . Current Operating: 0 S 0 S 0 General government S 6,819,165 $ 0 0 Public safety 6,924,599 0 0 Public works 522,724 9,353,622 0 Public health and welfare 124,536 14,664,498 0 0 Miscellaneous 273,702 138,837 17,258 0 Culture and recreation 95,710 0 148,461 0 0 Conservation of natural resources 0 C. Economic assistance 0 4,491,346 0 C Capital outlay 348,145 246,166 1,034,212 8,749 Debt service 126,088 0 1,675 72,500 Intragovernmental 0 594,982 0 0 Total Expenditures 15,234,669 29,637,912 1,053,185 81,249 EXCESS OF REVENUES OVER (UNDER) 61,150 11?,e58 EXPENDITURES 1,169,978 (861,232) 1,2 OTHER FINANCING SOURCES (USES): Operating transfers - in S 108,393 $ 2,129,550 $ 0 S 1,693 Operating transfers - out (1,285,193) ,164,481 (1 ) 0 0 Total Other Financing Sources (Uses) (1,176,800) 965,069 0 1,693 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (6,822) 103,837 1,261,150 120,351 FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR 1,149,280 4,848,556 124,552 (790,447) Equity Transfers to Other Funds (128,780) 0 0 0 FUND BALANCE (DEFICIT) AT END OF YEAR $ 1,013,678 P-1-z—' 951222. S 1,385,702 $ (670,096) See Notes to Financial Statements Fiduciary Fund Tyres Memorandum Total Expendable December 31 December 31 Trust 1987 1986 $ 2,377 $ 18,846,835 $ 17,888,662 O 613,026 581,360 0 20,789,309 20,720,989 0 1,149,717 1,742,650 0 76,465 67,198 1,050,014 4,506,693 2,231,622 0 1,711,894 1,680,356 355,154 1,409,175 1,543,522 1,407,545 49,103,114 46,456,359 $ 0 S 6,819,165 $ 6,516,851 0 6,924,599. 7,272,935 O 9,876,346 8,505,739 0 14,789,034 14,660,502 3,120,713 3,550,550 1,401,846 0 244,171 265,352 0 0 6,025 0 4,491,346 3,962,816 O 1,637,272 1,397,988 0 200,263 252,753 0 594,982 488,119 3,120,713 49,127,728 44,730,926 (1,713,168) (24,614) 1,725,433 $ 0 S 2,239,636 $ 3,347,991 0 (2,449,674) (3,351,695) • 0 (210,038) (3,704) (1,713,168) (234,652) 1,721,729 5,217,620 10,549,561 8,827,832 O (128,780) 0 S 3,504,452 1.19421L2.-.21 S 10,549,561 COUNTY c w STATE OF COLORADO COMBINED SLATE1ENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES December 31, 1987 General Soecial Revenue Variance Variance Estimate/ Favorable Estimate/ Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes $ 10,710,080 $ 10,793,324 $ 83,244 $ 7,994,029 $ 7,770,984 $ (223,045) Licenses and permits 395,005 382,707 (12,298) 100,750 230,319 129,569 Intergovernmental 814,325 879,166 64,841 21,631,736 19,910,143 (1,721,593) Charges for services 454,764 451,484 (3,280) 233,725 692,078 458,3533 Fines and forfeitures 28,645 76,465 47,820 0 Miscellaneous 928,306 1,056,616 128,310 1,600 173,156 171,556 Fee accounts 1,731,843 1,711,894 (19,949) 0 0 Earnings on investments 1,202,270 1,052,991 (149,279) 0 Total Revenues 16,265,238 16,404,647 139,409 29,961,840 28,776,680 (1,185.160) EXPENDITURES: Current Operating: 0 $ 0 General government S 7,023,669 $ 6,819,165 $ 204,504 $ 0 $ 0 0 Public safety 7,158,485 6,924,599 , 233,896 0 Public works 546,138 522,724 23,414 10,735,112 9,353,622 1,381,490 Public health and welfare 124,536 124,536 0 15,368,729 14,664,498 704,231 Miscellaneous 373,173 273,702 99,471 242,911 138,837 104,074 Culture and recreation 32,005 95,710 (63,705) 182,301 148,461 33,840 Economic assistance 0 0 0 4,972,196 4,491,346 480,850 Capital outlay 389,449 348,145 41,304 17,250 246,166 (228,916) Debt service 126,089 126,088 1 607,520 594,980 72,540 Intragovernmental 0 0 0 Total Expenditures 15,773,544 15,234,669 538,875 32,126,024 29,637,912 2,488,112 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 491,694 1,169,978 678,284 (2,164,184) (861,232) 1,302.952 .,.HER FINANCING SOURCES (USES): Operating transfers - in $ 108,192 $ 108,393 $ 201 $ 717,240 $ 2,129,550 $ 1,412,310 Operating transfers - out (1,196,127) (1,285,193) (89,066) (1,036,113) (1,164,481) (128,368) Total Other Financing _83,942 Sources (Uses) (1,087,935) (1,176,800) (88,865) (318,873) 965,069 1,_ EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES S (596,241) $ (6,822) $ 589,419 1-i2,4,221) $ 103,837 1_323.122_4 See Notes to Financial Statements Capital Projects Special Assessments Memorandum Totals Variance Variance Variance Favorable Estimate/ Favorable Estimate/ Favorable Estimate/ Budcet Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable; S 277,491 $ 280,150 $ 2,659 $ 0 $ 0 $ 0 $18,981,600 $18,844,458 $ (137,142) 0 495,755 613,026 117,271 0 0 0 0 0 0 22446 061 20 789 309 (1 656,752) O 0 0 0 0 0 688,489 1,149,717 461,228 O 6,155 6,155 0 0 47,820 2,009,500 2,027,000 17,500 206,36 199,907 (6,460) 1,7313,145,775 3,456,679 310,904 843 1,711,894 (19,949) 0 0 0 0 O 0 0 0 0 1,202,270 1,054,021 (148,249) 0 1,030 1,030 2,286,991 2,314,335 27,344 206,369 199,907 (6,462) 48,720,438 47,695,569 (1,024,869) 0 $ 7,023,669 $ 6,819,165 $ 204,504 S 0 $ 0 $ 0 $ 0 $ • 0 $0 0 0 0 0 0 7,158,485 6,924 599 233,886 0 11,281,250 ,9 876,,346 1,404,904 0 0 0 0 0 0 15493265 14,789,034 704,231 0 0 0 0 0 O 17,298 (17,298) 0 0 0 616,084 429,837 186,247 0 0 214,306 244,171 (29,865) O 0 0 0 0 0 4,972,196 4,491,346 480,850 O 0 0 073 056 1,294,879 1,034,212 260,667 8,750 .2,509 1 1,710,328 1,637,272 , 0 1,675 (1,6700) 184,750 0 72,500 0 112,2500 31607,525 5839 64,98? 110,543 ,576 O 0 1,294,879 1,053,185 241,694 193,500 81,249 112,251 49 387, ,947 46,007,015 3,380,932 992,112 1,261,150 269,038 12,869 118,658 105,789 (667,509) 1,688,554 Slaal 0 $ 0 $ 0 $ 1,694 $ 1,693 00 (2,232 $ (1) $ ,126 240) $ 2,239,636(2,449,674) (2 S 1,412,510 17,434) 0 0 0 0 0 0 0 1,694 1,693 (1) (1,405,114) (210,(a) 1,195,076 $ 992,112 $ 1,261,150 $ 269,038 S 14,563 $ 120,351 $ 105,788 5(2,072,623) $ 1,478,516 $ 3551,139 COUNTY OF WELD STATE-OF COLORADO COMBINED STATEMENT OF REVENUES EXPENSES AND GRANGES IN RETAINED EARNINGS/ FUND BALANCES - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS December 31, 1987 • _ Proprietary Fiduciary Fund Tyne Fund Type Memorandum Total Enterprise Internal Pension December Ji uecemner 3s Fund Service Trust 1987 1986 OPERATING REVENUE: Change in unrealized appreciation(depreciation) in fair market value of investments S 0 S 0 S (2,369,532) $ (2,369,532) $ (507,173) Contributions 0 -0 1,675,355 1,675,355 1,487,861 Charges for services 1,192,479 . 5,087,987 0 6,280,466 4,588.229 Total Operating Revenue 1,192,479 5,087,987 (694,177) 5,586,289 5,568,917 OPERATING EXPENSES: Personnel services $ 675,916 S 1,349,791 $ $ 2,025,707 $ 1,319,135 Contractual services 36,592 1,629,259 1,665,851 1,451,478 Supplies 31,830 409,080 440,910 340,502 Heat, light, and power 6,885 229,945 236,830 238,610 Repair and maintenance 88,629 243,474 332,103 224,723 Insurance and bonds 15,000 478,669 493,669 372,345 Claims 0 285,647 285,647 132,136 Other expenses 313,477 10,708 324,185 35,391 Benefit Payments 0 0 602,56 602,568 464,517 Refunds 0 0 230,81 230,810 246,809 Administrative 0 0 108,45 108,459 116,852 Depreciation 6,928 1,273,850 1,280,778 1,245,277 Total Operating Expenses 1,175,^-57 5,910,423 941,837 8,027,517 6,188,075 OPERATING INCOME (LASS) 17,222 (822,436) (1,636,014) (2,441,228) (619,158) NON-OPERATING REVENUE (EXPENSE): Taxes $ 0 S 548,693 $ 0 S 548,693 $ 546,921 Miscellaneous revenue 2,712 108 0 2,820 0 Farm income 0 1,803 0 1,803 2,807 Gain (loss) on sale of assets 0 89,807 0 89,807 11,329 Earnings on investments 0 22,320 1,844,039 1,866,359 3,143,580 Interest expense 0 (17,303) 0 (17,303) (20,094) Judgements and damages 0 60,228 0 60,228 30,492 Tbtal Non-Operating Revenue (Expense) 2,712 705,656 1,844,039 2,552,407 3,715,035 '=:FR FINANCING SOURCES: C-erating transfers - in L...1 $ 100,000 $ 0 S 210,038 S 3,704 NET INCOME (LOSS) 129,972 (16,780) 208,025 321,217 3,099,581 RETAINED EARNINGS/FUND BALANCE AT BEGINNING OF YEAR 0 1,665,122 20,121,007 21,986,129 18,886,548 Equity Transfer From Other Funds 128,780 0 0 128,780 0 RETAINED EARNINGS/FUND BALANCE AT END OF YEAR $ 258,752 $ 1,848,342 $ 20,329,032 S 22,436,126 S 21,986,129 -i See Notes to Financial Statements COUNTY OF WELD SATE OF COLORADO PROPRIETARY rJNi)S COMBINED STATEMENT OF CHANGES IN CONTRIBUTED CAPITAL December 31, 1987 Internal Service Enterprise Funds Fund Total CONTRIBUTED CAPITAL January 1, 1987 $ 5,712,895 S 0 $ 5,712,895 Add: 1987 contributions from other funds 71,606 19,762 91,368 CONTRIBUTED CAPITAL, December 31, 1987 $ 5,784,501' $ 19,762 S 5,80x,263 T.:- Y.-.. STATE OF COLORADO COMBINED STATC1ENT OF CHANCES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FONDS December 31, 1987 Fiduciary Memorandum Proorietary Fund Tyre Fund Type Total internal Enterprise Pension December ii Decemcer ii Service Fund Trust 1987 1986 WORKING CAPITAL PROVIDED: Net Income (loss) $ (16,780) S 129,972 $ 208,025 S 321,217 S 3,099,581 Items which did not require __ outlay of working capital: Depreciation 1,273,850 6,928 0 1,280,326 1,245,277 (Gain) on sale of fixed assets (89,807) (452) 0 27,027 (11,329) Working capital provided by operations 1,167,263 136,448 208,025 1,628,570 4,333,529 Contributions from Other Funds 71,606 19,762 0 91,368 102,634 Residual equity transfers 0 128,780 0 128,780 0 Proceeds from sale of assets 174,275 0 0 57,441 236,__238 Total Working Capital Provided 1,413,144 264,990 208,025 1,906,159 4,6'2,401 WORKING CAPITAL APPLIED: Acquisition of fixed assets 1,336,904 31;717 0 1,368,621 1,110,907 Total Working Capital Applied 1,336,904 31,717 0 1,368,621 1,1'_0,907 INCREASE IN WORKING CAPITAL $ 76.240 S 253,273 $ 208,025 5 537,538 S 3,561,454 CHANGES IN COMPONENTS OF WORKING CAPITAL: Increase (decrease) in current assets: Cash and short term investments $ 10,331 $ 67,904 $ 17,189 $ 95,424 S 533,180 Cash - Other 0 0 120,399 120,399 (26,737) Investments 0 0 64,288 64,288 3,230,880 Receivables: Accounts (1,317) 206,713 (7,003) 200,393 88,923 Property taxes (delinquent) (3,451) 0 0 (3,451) 3,234 Due from other county funds 202,233 90,415 0 292,648 (438,034) Inventories (27,318) 0 0 (28,318) (60,957) Prepaid and other assets 3,708 0 17,863 21,571 202,702 Net Increase in Current Assets 184,186 367,032 212,736 763,954 3,533,191 (Increase) decrease in current liabilities: Accounts payable (132,704) (6,999) (3,571) (143,274) 72,375 Accrued liabilities 9,497 (66,856) 0 (57,359) (15,889) Due to other county funds 21,791 (39,904) (1,140) (19,253) (4,949) Deferred revenue (6,530) 0 0 (6,530) (23,234) Net (Increase) Decrease in Current liabilities (107,946) (113,759) (4,711) (226,416) 28.303 INCREASE IN WORKING CAPITAL 1_7112_40 L_152.272 $ 208,025 1_15224118_ S 3,561,494 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31 , 1987 Note 1 - Summary of Significant Accounting Policies: The County of Weld was established in 1861 , and on January 1 , 1976 became a home rule county under the provisions of Section 30-35-501 , CRS, 1973. The county operates under an elected commissioner form of government. The county provides the full range of services contemplated by statute or charter. These include general government functions, public protection and safety, health, social services, human resource services , public improvements, road and bridge operations, planning and zoning, and general administrative services. The financial statements of Weld County include those of separately administered organizations that are controlled by or dependent on the County. Control or dependence is determined on the basis of budget adoption, taxing authority, funding, scope of public service, ability to influence operation, designation of management, and appointment of the respective governing board. Based upon the foregoing criteria, the financial statements of the following organizations are included in the accompanying financial statements: Weld County Housing Authority -- The Board of County Commissioners appoints the five member board. The majority of funding provided is from state and federal housing grants of which the County is the primary recipient and sponsor. The operation is reported in the Housing Authority Fund, a Special Revenue Fund. Weld County Public Health Board -- The Board of County Commissioners appoints the seven member board and the Director of Public Health. Substantial funding is provided by the County for the operation of the Public Health Department. The Public Health Department's operations are reported in the Health Fund, a Special Revenue Fund. Weld County Retirement Board -- The Retirement Board consists of five members, four appointed by the Board of County Commissioners and the fifth being the elected County Treasurer. The County funds half of the retirement program which covers substantially all permanent, full-time employees of Weld County. The operation of the plan is accounted for in the Weld County Retirement Fund, as a Pension Trust Fund. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The following organizations are not part of Weld County and are excluded from the accompanying financial statements: North Colorado Medical Center -- The Board of County Commissioners appoints a seven member Hospital Board of Trustees that in turn appoints five of the eleven Normedco Board of Directors. Normedco being a holding company of which the North Colorado Medical Center (NCMC) is a non—profit subsidiary operating the hospital. The county commits minimal capital funds annually (less than 1Z of the total NCMC revenues for 1987) . The NCMC has the ability tc incur its own debt and .its operations are financed totally by patient revenues. Greeley—Weld Airport Authority -- The County Commissioners appoint two of the five Airport Authority Board members. The county has contributed approximately 5Z of the funds for capital construction. The Authority has full autonomy under Colorado State law, can incur debt, and funds its operations totally from user fees. - Weld Library District -- The County Commissioners, together with the concurrence of the city councils of seven participating municipalities, appoints the seven member Library District Board. The Library District Board has total autonomy under the State Library Act to incur debt, establish budgets, and levy property taxes to support the district's library system. The accounting and reporting policies of Weld County, Colorado conform to generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. The following summary of significant accounting policies is presented to assist the reader in evaluating the County's financial statements. Basis of Presentation: Each fund is an independent fiscal and accounting entity with a self—balancing set of accounts recording cash and other financial resources together with all related liabilities, residual equities and balances which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. In addition to the funds, self-balancing account groups are established to account for the general fixed assets and general long-term debt of the County. The various funds are grouped into six generic fund types under three broad fund categories as follows: COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Governmental Fund Types: All governmental funds and expendable trust funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance ( net current assets) is considered a measure of "available spendable resources". Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and se of "available spendable resources" during a P se General Fund: The General Fund accounts for all financial transactions of the County that are not properly accounted for in other funds. Ordinary operations of the County such as public safety, county administration and other ac +ties cin this taxes and nd general revenue are reflected fund. Special Revenue Funds: Special Revenue Funds are established to account for taxes or other earmarked revenue of the County which finance specified activities as required by law or administrative action. Capital Projects Funds: Capital Projects Funds are established to account for financial resources used for the acquisition or improvement of the capital facilities of the County. Special Assessment Funds: Special assessment funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Proprietary Fund Types: All proprietary funds and pension trust funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or non—current) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenue) and decreases (expenses) in net total assets. Internal Service Funds: Internal Service Funds are established to account for goods and services provided to other departments of the County on a cost-reimbursement basis. Enterprise Funds: Enterprise Funds are used to account for operations where the intent of the County is that the costs or services to the general public on a continuing basis be financed or recovered primarily through user charges. Fiduciary Fund Types: Trust and Agency Funds: Trust and Agency Funds are established to record transactions relating to assets held by the County in the capacity of trustee, custodian or agent for individuals , governmental entities and non-public organizations. These include expendable trust , pension trust and agency funds. Fixed Assets, Long-term Liabilities and Long-term Receivables: The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus as discussed above. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Acquisitions of general fixed assets are recorded as capital outlay expenditures within the governmental fuuds. Public domain ("infrastructure") general fixed assets consisting of roads , bridges and rights—of—way are not capitalized. No depreciation has been provided on general fixed assets. Depreciation of all exhaustible fixed assets used by Internal Service Funds and Enterprise Funds is charged as an expense against their operations. Accumulated depreciation is reported on their related balance sheets. Depreciation has been provided using the straight line method over the estimated useful lives, as follows: Buildings 30 years Land Improvements 20 years Equipment and furniture 3-10 years Recognition of governmental fund type revenue represented by non-current receivables not expected to be collected in the current period is deferred until they become current receivables. Fund balance is reserved for other long-term receivables which will not be collected in the current period. Basis of Accounting: Basis of Accounting refers to when revenue and expenditures or expenses are .recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The governmental funds, expendable trust funds, and agency funds utilize the modified accrual basis of accounting. Under this method revenues are recognized when measurable and available. Primary revenues susceptible to accrual are taxes, grant revenues and investment earnings. Property tax is reported as a receivable ( less estimated uncollectible amounts) when the levy is certified and as a revenue when collected. Other taxes are also reported as revenue when collected. Grant revenue is recognized as qualifying expenditures are incurred, and investment earnings are accrued over the life of the investment. Expenditures are generally recognized when the related fund liability is incurred except for long-term liabilities such as accrued vacation and sick leave which is recorded when payable from current available financial resources. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Proprietary funds and pension trust funds follow the accrual basis of accounting whereby revenue is recognized in the year in which it is earned and becomes measurable. Expenses are recorded when liabilities are incurred. Agency funds are custodial in nature ( assets equal liabilities) and do not involve measurement of results of operations. . Encumbrances: Weld County utilizes the encumbrance method of recording commitments related to unperformed contracts fcr goods and services. Under this method, outstanding encumbrances at year end are recorded as a reservation of fund balance since they do not constitute expenditures or liabilities. ?s. appropriation is made in the subsequent year to provide authority to complete the transaction. Budget:An annual budget and appropriation ordinance is adopted by the Board of County Commissioners in accordance with the Colorado State Budget Act and Weld County Home Rule Charter. The budget is prepared on a basis consistent with generally accepted accounting principles for all governmental, proprietary and expendable trust funds. The accounting system is employed as a budgetary management control device during the year to monitor the individual departments (level of classification at which expenditures may not legally exceed appropriations) . All annual appropriations lapse at year end. The Director of Finance and Administration is authorized to transfer budgeted amounts within departments of each fund. Any revisions that alter the total appropriation for each department must be approved by the County Commissioners through a supplemental appropriation ordinance. During 1987, two supplemental appropriation ordinances were enacted. Budget amounts reported in the accompanying financial statements include these supplemental appropriations. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Property Taxes: Property taxes attach as an enforceable lien or. property as of January 1. Taxes are levied no later than November 15 and are payable in the following year in two installments on March 1 and August 1 , or in full on April 30. The County, through the Weld County Treasurer, bills and collects its own property taxes as well as property taxes for all school districts, cities and towns and special districts located within the County. In accordance with Section. 14-7 of the Weld County Home Rule Charter, all ad valorem tax levies for County purposes, when applied to the total valuation fcr assessment of the County, shall be reduced so as to prohibit the levying of a greater amount of tax revenue than was levied from ad valorem taxation in the preceding year, plus five per cent (5%) , except to provide for the payment of bonds and interest. The Board of County Commissioners may submit the question of an increased levy to the County Council, and if in the opinion of a majority of the County Council the County is in need of additional funds , the Council may grant an increased levy for the County in such amount as it deems appropriate, and the County is authorized to make such increased levy. Any one capital project requiring a capital expenditure out of funds procured by ad valorem taxation equal to a three mill levy for three years, shall be prohibited unless approved by a majority vote of the qualified electors at a general or special election per Section 14-8 of the Weld County Home Rule Charter. The original January 1, 1987 levies for the applicable funds of the County are as follows: Levy Mills Amount General Fund 11.714 $ 10,620,028 Road & Bridge 3.742 3,392,534 Social Services Fund 2.506 2,271,965 Contingent Fund 1.048 950,127 Capital Expenditures Fund .286 259,291 IGS - Insurance .564 511 ,328 TOTAL 19.860 $ 18,005,273 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Investments: Investments of the pension trust funds are stated at fair market value . Inventories: Inventories of governmental funds, which consist of expendable materials held for consumption, are stated at the lower of cost, determined by the first-in, first-out method or market. These funds follow the consumption method of accounting whereby expenditures are recorded at the time the inventory items are used. Inventories of proprietary funds are recorded at the lower of average cost or market. Interfund Transactions: Interfund transactions resulting from reimbursements, operating transfers , and charges for services rendered, are recorded as due to or due from other county funds. Advance to Other Funds: Non-current portions of long-term interfund loans receivable (reported in "Advance to" asset accounts) are equally offset by a fund balance reserve account which indicates that they do not constitute "available spendable resources" since they are not a component of net current assets. Current portions of long-term interfund loans receivable (reported in "Due From" asset accounts) are considered "available spendable resources". Sick-leave, Vacation Pay and Comp time: Accrued vacation, sick pay and comp time for the governmental funds are accounted for in the General Long-Term Debt Account Group. Sick-leave is earned when vested and recorded as an expenditure in the applicable fund when paid. In the event of retirement or termination, an employee whose date of hire is prior to January 1, 1985 is paid for 50% of accumulated sick—leave hours up to the equivalent of one month. At December 31 , 1987 , the liability for accumulated sick—leave approximated $557,925. Unused vacation time is forfeited after 24 months from date earned. Upon termination or retirement, employees are paid for their accrued vacation. At December 31 , 1987, the liability for accumulated vacation approximated $440,968. Vacation is recorded as an expenditure in the applicable fund when paid. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31., 1987 Vacation and sick-leave are accrued in the Proprietary Fund Types when earned. Comp time is recorded as an expenditure when paid. At December 31 , 1987 , the liability for accumulated comp tine was $56,404. Grant Revenue: A receivable is generally recorded at the time a grant is awarded. Grant revenue is deferred and recognized when qualifying expenditures are incurred. Grant revenue is recognized to the extent of qualified expenditures incurred. Non-federal In—kind Contributions: Volunteers assist the various programs of the Human Resources Fund (a special revenue fund) in providing transportation and various other program functions. The volunteer labor is recognized as a contributed revenue at $3.35 per hour. Certain volunteer labor is recorded at higher rates based upon the individual' s professional experience. Volunteer mileage is recorded at 20c per mile. Donated food, clothing, and other goods are recognized as contributed revenue at their fair market value. An offsetting in—kind expenditure is also recorded for the value of the donated goods and services. Total Columns on General Purpose Financial Statements: Total columns on the General Purpose Financial Statements are captioned Memorandum Total to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 2 — Ambulance Enterprise Fund: The Ambulance Enterprise Fund was created in 1987 by Resolution of the Board of County Commissioners. The operations of the ambulance department were moved from Governmental (General Fund) to the newly created Enterprise Fund as it more clearly reflects the nature and purpose of its operations. Prior years amounts have rot been reclassified as such amounts are not material. Fixed assets with an approximate fair value of $19,762 were transferred to the Ambulance Fund from the General Fixed Asset Account Group and recorded as a contribution of capital. The net assets transferred to the Ambulance Fund from the General Fund of $128,780 are recorded as a residual equity transfer. Additionally the General Fund made an operating transfer of $110,038 to subsidize the Ambulance Fund's operations during 1987. Note 3 — Equity in Pooled Cash and Investments, Cash, and Investments: The County maintains a cash and investment pool that is available for use by all funds except the Pension Trust Fund. Each fund's share is displayed on the balance sheets as "Cash and Investments". Several of the County's funds also hold investments on thir own and Trust eFund are c held t separately hfrom those ofinvestments Pension the other County funds. Deposits: At year—end, the carrying amount of the County's deposits was $16,847,403. Of this amount, $3,782,139 was covered by Federal deposit insurance and the remainder was collateralized with securities held by the pledging financial institution's trust departments or agents in the County's name. An amount representing food stamps held at December 31, 1987 of $915,258 is not included in the above amount. Investments: Statutes authorize the County to invest in obligations of the U.S. Treasury, agencies, and instrumentalities, commercial paper, and repurchase agreements. The Pension Trust Fund is also authorized to invest in corporate bonds and mortgages. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The County's investments are categorized to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes the investments that are insured or registered or for which the securities are held by the County or its agent in the County's name. Category 2 includes uninsured and unregistered investments for which the securities are held in the County's name. As of December 31 , 1987, the County's investments were held by the County or its agents in the County's name and were insured or registered, , where applicable. Investments as of December 31, 1987 were as follows: Carry Market Category 1 Category 2 Amount Value Mutual Funds $ 1 ,832,676 $ -0- $ 1,832,676 $ 1,832,676 Corporate Bonds 5,835,857 -0- 5,835,857 5,835,857 Trust Fund 520,403 -0- 520,403. 520,403 Mortgages -0- 326,764 326,764 326,764 Treasury Obligations 2,841,746 -0- 2,841,746 2,841,746 Common Stock 9, 174,716 -0- 9,174,716 9, 174,716 Federal Funds 2,224,998 -0- 2,224,998 2,224,998 $22,430,396 $ 326,764 $22,757,160 $22,757,160 The Pension Trust Fund owns approximately 53% of the investments in Category 1 and 100% of the investments in Category 2. The County incurred approximately $131,754 of losses on sales of investments during the year. Note 4 - Receivables: The allowance for uncollectible receivables consists of the following at December 31 , 1987: Allowance For Fund Uncollectibles General $ 80,641 Special Revenue 5,471 ,899 Capital Projects 1,983 internal Service 4,073 Trust S Agency 3,110 Enterprise 181,734 TOTAL • $ 5,743,440 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 5 - Individual Fund Interfund Receivable and Payable Balances: Interfuud receivable and payable balances at December 31, 1987 are as follows: Interfund Interfund Receivables Payables General Fund $ 142,229 $ 376,480 Special Revenue Funds: Road and Bridge Fund 65,503 427,582 Social Services Fund 5,160 34,864 Conservation Fund -0- 8,833 Contingency Fund 29,692 29,692 Public Health Fund 12,000 7,037 Human Resources Fund 72,636 42,460 Solid Waste Fund -0- 23,687 Housing Authority Fund 3,179 5,542 Capital Expenditures Fund 80 80 Special Assessment Funds: Indianhead 8,749 8,749 Enterprise Fund: Ambulance 90,415 39,904 Internal Service Funds: Motor Vehicle Fund 323,996 11,012 Printing and Supply Fund 25,778 26 Computer Services Fund 175,978 2,251 Insurance Fund 39,983 -0- PBX Fund 29,827 3,202 Trust and Agency Funds: Employee Flexible Spending -0- 1 ,413 Payroll Agency Fund 4,898 70 Retirement Fund -0- 1,140 Health Insurance Fund -0- 6,079 TOTAL $1 ,030,103 $1,030,103 Note 6 - Special Assessments: Weld County has four Special Assessment funds which are on the Treasurer's Role for improvements to be paid for by the property owners. • COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The following schedule shows the assessment amount due for each fund: Year Ended Elmore Antelope Indian December 31 , Road Road 5 Hills Head Total 1988 $ 843 $100,000 $ 1,871 $ 706 $103,420 1989 843 100,000 1 ,871 706 103,420 1990 843 100,000 1,871 706 103,420 1991 844 100,000 1 ,871 706 103,421 1992 -0- - 100,000 1,871 706 102,577 Thereafter -0- 375,000 7,487 3,526 336 ,013 Total Assessment Receivable $ 3,373 $875,000 $16,842 $ 7,056 $902,271 Note 7 — Bonds Payable Bonds outstanding and related interest requirements as of December 31 , 1987 are detailed as follows: Principal Requirement Interest Requirement Certifi- Certifi- cate of Special cate of Special Total Partici- Asses- Total Partici- Asses- Total Annual Year potion ment Principal pation went Interest Requirement 1988 $ 72,000 $100,000 $ 172,000 $20,103 $ 63,750 $ 83,853 $ 255,853 1989 75,000 100,000 175,000 15,963 54,625 70,588 245,588 1990 80,000 100,000 180,000 11,275 45,250 56,525 236,525 1991 90,000 100,000 190,000 . 6,075 35,625 41,700 231 ,700 1992 -0- 100,000 100,000 -0- 25,750 25,750 125,750 there- after -0- 200,000 200,000 -0- 20,875 20,875 220,875 $317,000 $700,000 $1 ,017 ,000 $53,415 $245,875 $299,290 $1 ,316,290 The following is a summary of the bond transactions of the County for the year ended December 31, 1987: Certificate of Special Participation Assessment Total Bonds Payable January 1, 1987 $ -0- $ 800,000 $ 800,000 Bonds Issued 1987 317,000 -0- 317,000 Bonds Retired 1987 -0- (100,000) (100,000) Bonds Payable December 31, 1987 $317,000 $ 700,000 $1 ,017,000 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 On December 1 , 1987, the County legally issued Certificates of Participation in the amount of $317,000. The issue was the result of construction of two classrooms and library in southern Weld County. Principal is paid annually on December 1 , with interest rates varying from 5.75% to 6.75%. The net effective interest rate is 7.616545%. At December 31 , 1987, there are $700,000 of special assessment bonds payable. The bonds were issued to pay for road construction and are to be repaid through collection of an assessment of the property owners (see Note 5) . The bonds which bear interest between 8.52 - 10.5% mature as follows: $100,000 each year from 1988 through 1991 and $300,000 thereafter. Note 8 - Transfers: Cash is transferred from one fund to support expenditures cf other funds in accordance with authority established for the individual fund. Transfers within fund types have been eliminated. A summary of interfund transfers by fund type is as follows: TRANSFER TO TRANSFER FROM Special General Revenue Total General $ -0- $ 108,393 S 108,393 Special Revenue 1 ,075,155 -0- 1,075,155 Special Assessment -0- 1,693 1 ,693 Proprietary 210,038 -0- 210,038 Total $1 ,285,193 $ 110,086 $1,395,279 Note 9 - Food Stamps Food Stamp activity for 1987 is not shown as revenue and expenditures in the financial statement as it is not a budgeted item. The food stamps issued amounted to $5,198,220 for the year 1987. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 10 - Changes in General Fixed Assets: A summary of changes in general fixed assets follows: Balance Balance 1/1/87 Additions Deletions 12/31/87 Land $ 1 ,588,952 $ 506,260 $ -0- $ 2,095,212 Improvements other than buildings 218,011 12,909 -0- 230,920 Buildings 18,738,024 463,394 772,765 18,428,653 Machinery and equipment 3,048,322 806,905 315,304 3,539,923 Total 523 ,593,309 $1,789,468 $1 ,088,069 S24,294,i08 Note 11 — Capital Lease Obligation: The County leases two phone systems under agreements accounted for as capital leases. . The following is a schedule of the future minimum lease payments under the capitalized leases together with the present value of the net minimum lease payments as of December 31, 1987. • Human Social Year Ending December 31 , Resources Services Total 1988 $ 17,802 $ 29,645 $ 47,447 1989 17,802 29,645 47,447 1990 16,318 29,645 45,963 1991 0 29,648 29,648 1992 0 27,262 27,262 Thereafter 0 0 0 Total minimum lease payments 51 ,922 145,845 197,767 Less: Amount representing interest (6,817) (30,617) (37,434) Present value of net minimum lease payments $ 45,105 $115,228 $160,333 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 12 — Tax Anticipation Notes: In 1987 Weld County issued tax anticipation notes, Series 1987, in the amount of $2, 990,000. Weld County was authorized in accordance with Section 29-15-1 , CRS, 1986, to issue by resolution tax anticipation notes in an amount not to exceed fifty percent of all taxes estimated by the County in the current fiscal year. At December 31 , 1987 all bonds were due and payable. $1,905,000 of the bonds were not redeemed by bondholders until 1988. Interest ceased to accrue on the redemption date of December 31, 1987. Note 13 - Changes in Long-Term Debt: The following is a summary of long-term debt transactions of the County of Weld for the year ended December 31, 1987: Balance Balance 1/1/87 Additions Reductions 12/31/87 Certificate of Participation (Note 7) S -0- $317,000 $ -0- $ 317,000 Phone Lease Obligation (Note 11) 190,481 -0- 30,148 160,333 Vacation & Sick Leave 1 ,063,546 -0- $ 8,253 $1 ,055,293 TOTAL $1 ,254,027 $317,000 $ 38,401 $1,532,626 Sick leave and vacation accruals for Governmental Fund types are recorded in this -fund together with the capital lease obligations and certificate of participation for government funds. Weld County has no general bonded indebtedness. In accordance with Section 30-35-201 , CRS, 1973, the limit of Weld County's general bonded indebtedness is 3% of the assessed valuation or $27,198,297 as of December 31, 1987. Note 14 — Fund Balance Reserves: Reserves for the County of Weld consist of: Reserve for Advances — to Special Assessment Funds: These reserves were established in conjunction with an assessment of a designated group of taxpayers. As the assessments are collected, the advance is repaid. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Reserve for Encumbrances: These reserves are established to record purchase orders and commitments outstanding for which the related goods/services have not been received at year end. Reserve for Prepaid Items: These reserves are established to record all prepaid items. Reserve for Inventories: These reserves are established to record the total level of inventories. Reserve for Employee Benefits: These reserves are established to record the Pension Benefit obligation of the Weld County Retirement Plan. Reserve for Advances — to Internal Service Funds: These reserves were established to record a temporary loan of cash flow for a supply inventory. Designated Fund Balance: Fund balance designated for subsequent year's expenditures represents fund balance commitments for appropriated expenditures in excess of anticipated revenue for the year ending December 31, 1988. The following is a summary of all reported reserves by fund type: Special Capital Trust and Reserves General Revenue Projects Agency Total Encumbrances $ 45,297 $ 537,293 $144,351 $ 60 $ 727,001 Prepaid Items 29,244 53,791 -0- -0- 83,035 Inventories 31,339 740,778 -0- -0- 772,117 Advances to Special Assess- ment Funds 27,289 75,000 -0- -0- 102,289 Advances to Internal Service Funds 80,000 -0- -0- -0- 80,000 Employee Benefits -0- -0- -0- 20,121,007 20,121,007 TOTAL $213, 169 $1,406,862 $144,351 $20,121,067 521 ,885,449 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 Note 15 — Other Required Individual Fund Disclosures: The deficit fund balance of the Special Assessment Funds (Improvement District Road 5 - $652,771, Indianhead Special Assessment - $6,350 and Antelope Hills Special Assessment - $11 ,748) arose because of the application of generally accepted accounting principles to the financial reporting for such funds. Special assessments are recognized as revenue only to the extent that individual installments are considered to be available , spendable resources. The deficit will be reduced and eliminated as deferred special assessment installments become available, spendable resources. The deficit fund balance of Social Services (Special Revenue) cf $122,195 was caused by program cost increases in areas over state reimbursement. This shifted the burden for these expenses to the local tax source which was not sufficient to cover the overage. Additional dollars will be added to the 1988 allocation to support the burden created by these disallowed reimbursable costs. Excesses of expenditures over appropriations in individual funds are as follows: Revised Over Appropriation Expenditures expenditure Special Revenue Funds: Human Resources $ 3,845,920 $ 3,856,574 $ (10,654) Enterprise Funds: Ambulance $ 956,500 $ 1,175,257 $ (218,757) • The overage for the Human Resources fund was caused due to an increase in the Headstart expenditure. The overage in the Ambulance Fund is attributed to first year start—up cost. In—kind contributions and expenditures are not included as budgetable items. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31, 1987 The District Court, County of Weld, State of Colorado in a Court Order dated January 28, 1983 in Case Number 80CV1091 decreed that in accordance with Section 29-1-111.5, CRS, 1973, Weld County can designate specific ownership tax directly to the Road and Bridge Fund. In accordance with Section 8-44-110, CRS, 1973, a property tax mill levy may be used to fund the self—insurance program for local county activities. Note 16 — Weld County Retirement Plan: The Weld County Retirement Plan is a trusteed defined benefit pension plan. All full time employees (except officers and employees of any Federally—funded program which excludes them) are required to participate in the plan. At December 31, 1987 the number of participating employees was 835, and the membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them: 185 • Current Employees: Vested: 291 Nonvested: 359 TOTAL 835 The Weld County Retirement Plan, established in 1969 provides for pension, death, and disability benefits. All benefits are fully vested after 8 years of service, except elected officials, who are fully vested regardless of years of service. Employees are required to contribute 6.0%, by directive of the retirement board, to the Retirement Plan which is equally matched by the County. Contributions during 1987 for both the County and the employees totalled $1,675,355. Total covered payroll for year ended December 31 , 1987 was $13,962,091. The Weld County Retirement Plan is accounted for using the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which employee. services are performed. Investments are reported at market. Investment income is recognized over the life of the investments. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1986 The amount shown below as "Pension Benefit Obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the Plan. The "Pension Benefit Obligation" was determined as part of an actuarial valuation at January 1, 1987. The actuarial assumptions used include: A) Rate of return on the investment of present and future assets of 7 .5% per year compounded annually, and B) Earnings progression at various rates depending on attained age from 8.5% for age 25 to 6.3% for age 64. At January 1 , 1987 there are assets in excess of the pension benefit obligation of $4,284,496 as follows: Pension Benefit Obligation: Retirees and Beneficiaries Currently Receiving Benefits $ 3,988,439 Terminated Vested Employees 66,301 Not Yet Receiving Benefits Current Employees: Accumulated Employee Contributions . Including Allocated Investment Income 4,507,102 Employer Financed Vested 5,287,047 Employer Financed Nonvested 1,987,622 Total Pension Benefit Obligation: 15,836,511 Net Assets Available for Benefits(Market Value) : 20,121,008 Assets in Excess of Pension $ 4,284,496 Benefit Obligation: Information on the effects of current year changes in actuarial assumptions and benefit provisions on the pension benefit obligation is not presented as it is not available. COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended December 31 , 1987 Note 17 - Deferred Compensation: Effective January 1 , 1984, as allowed by the provisions of Section 24-52-101 , et. seq. , CRS, 1973, and by Section 457 of the Internal Revenue Code of 1954, as amended, the Couuty of Weld established the Deferred Compensation Plan of the County of Weld. The plan is a special voluntary benefit plan for public employees, in which a portion of the employee's earnings car. be set aside and invested, free of current income taxes. Up to 25Z of the employee's gross income can be deferred, " not to exceed $7,500 annually. Compensation deferred by a participant under the plan and earnings on deferred amounts must remain solely the property of Weld County until paid to the participant or the participant's beneficiary. The County holds these funds in custody for the participants and exercises no discretion over the investment of the funds. The participants election of investments determines the risk factor he is willing to absorb. Investments are recorded at market value. Note 18 — Contingent Liabilities: The Couuty is currently the defendant in several lawsuits. Based upon the opinion of legal counsel, these claims would be covered by insurance and/or there does not appear to be a threat of significant liability to the County. Self—insurance for liability exposure is maintained by the Insurance Fund in the Internal Service Fund group. Self-insurance is in effect for incidents up to Jute 30, 1986 for property, casualty, and liability losses up to $100,000 per occurrence. Losses greater than $100,000 per occurrence, and those in excess of the aggregate stop loss, were insured by private insurance companies. County-wide annual aggregate stop loss limit was $340,000. Effective July 1 , 1986, Weld County joined Colorado Counties, Incorporated's Casualty and Property Pool (CAPP) which covers all casualty and property claims with a $500 deductible for first party property claims. Worker's Compensation remains slfsu red with a $200,000 per occurrence and $200,000 aggregate ggg se annual stop loss limit. Private insurors cover claims above the stop loss limit for all types of insurance. The County participates in a number of federal and state grant programs. Principal funding agencies include the Office of Revenue Sharing, Department of Labor, Community Services Administration, Department of Health, and Human Services, Department of Housing and Urban Development, and Area Agency on Aging. These programs are subject to program compliance audits by the grantors or their representatives. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the County expects such amounts, if any, to be immaterial. APPENDIX B CASHFLOY SUMMARY Cumulative Surplus (deficit) Cumulative ( 2 minus 1 plus or Reasonably Cash flow Estimated Estimated minus previous figure Required Cash Surplus (deficit) Expenditures Receipts in this column) Balance (3 minus 4) Opening balance 0 0 105,810 0 105,810 January 3,622,500 630,000 (2,886,690) 1,136,100 (4,022,790) - February 1,136,100 1,260,000 (2,762,790) 873,600 (3,636,390) March 873,600 2,100,000 (1,536,390) 1,417,500 (2,953,890) April 1,417,500 3,407,250 453,360 1,102,500 (649,140) May 1,102,500 1,623,000 973,860 1,102,500 (128,640) June 1,102,500 840,000 711,360 1,323,000 (611,640) Juty 1,323,000 2,870,060 2,258,420 1,212,750 1,045,670 August 1,212,750 1,942,643 2,988,313 2,415,000 573,313 September 2,240,063 873,600 1,621,850 1,102,500 519,350 October 1,102,500 873,600 1,392,950 1,212,750 180,200 November 1,212,750 997,500 1,177,700 1,747,200 (569,500) December 1.747.200 1,144,500 575,000 3,675,000 (3,100,000) 18,092,963 18,562,153 LAW OFFICES BALLARD, SPAHR, ANDREWS a INGERSOLL SEVENTEENTH STREET PLAZA BUILDING 30 SOUTH 17TH STREET SUITE 2300 PHILADELPHIA, PA. 19103 215 564-1600 1225 17TH STREET TELECOPIER:2i5 496-0316 TELEX:B3-4532 DENVER, COLORADO 80202 303 292-2400 SUITE 1100 1950 K STREET, N. W. TELECOPIER.303 296-3956 WASHINGTON D. C.20006 202 466-5600 TELEX: 90-4185 LORING E. HARKNESS IQ January 25, 1989 Boettcher & Company, Inc. 828 17th Street Denver, Colorado 80202 Board of County Commissioners of Weld County 915 10th Street Greeley, Colorado 80632 Re: Weld County, Colorado Tax Anticipation Notes Series 1989A Dated January 25, 1989 - $3, 950,000 Ladies and Gentlemen: By this letter we wish to confirm our understanding with you that this firm has been engaged in connection with the above-referenced issue (the Notes) to render an opinion as to the validity of the Notes and the tax treatment of the interest • thereon under federal and State of Colorado income tax laws and not to prepare or pass upon any official statement, prospectus, offering circular, or other documents used in the offer or sale of the Notes or to make any investigation incident to the preparation of such documents or to the offer or sale of the Notes. Very truly yours, 117 Loring E. Harkness III Hello