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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.
CONTINGENCY FUND:
The Contingency Fund is funded at the level of $700,000, same as 1986. It
is recommended that this amount, coupled with the $500,000 carry—over fund
balance in the General Fund be retained, especially with all the uncertainty
of federal funding and oil and gas tax collections.
SOLID WASTE FUND:
Funded at anticipated revenue level of fees at $90,000. $22,000 is
committed to offset environmental health costs ($12,000) and trash pickup
program ($10,000) . The remaining is unallocated for road maintenance or
other related needs to the solid waste program in Weld County.
REVENUE SHARING FUND:
No funds are anticipated in 1987 since current enabling legislation expires
September 30, 1986. If any funds are received in 1987, they should be dealt
with as a 1987 Supplemental Appropriation.
CONSERVATION TRUST FUND:
The Conservation Trust Fund is budgeted at $151,000 based upon the
anticipated lottery revenue for 1987. The Board has received requests for
funding totalling $222,821. The recommended budget is only $151,000 and
reflects the Board's current policy position on the use of the funds for
1987.
-172-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: FEDERAL REVENUE SHARING TRUST FUND
BUDGET UNIT TITLE AND NUMBER: Revenue Sharing Fund -- 14-9540
DEPARTMENT DESCRIPTIO
1972, and amended subsequen iy Federal funding received from the
General Revenue Sharing program enacted in
RESOURCES BUDGETED REQUESTED
Personnellialliallanallillallall
CURRENT FY NEXT FY RECOMMENDED
NEXT FY
MIME $1,409,042
Ca.ital/Credits $1-■ $ mmisalu
-0-
Gross Count Cost 1,409,042 1,407,000IIMMIIIIIIII _
1,409,042 -0 -0-
Net Count Cost 1,407,000 -0- -0-
0_
Bud•et Positions -0-
allillallailliallia-0-
SUMMARY OF CHANGES: No funds are anticipated in 1987 since current enablin
expires September 30, 1986.
g legislation
OBJECTIVES:
n/a
WORKLOAD MEASURES ,
ESTIMATED PROJECTED
twismimCURRENT FY NEXT. FY
FINANCE/ADMINISTRATIVE RECOMMENDATION: If any funds are received in 1987,
be dealt with as a 1987 Supplemental Appropriation.
they should
-173-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: CONSERVATION TRUST FUND
BUDGET UNIT TITLE AND NUMBER: Conservation Trust Fund
DEPARTMENT '- 15-1943
acquiei�tioENT DESCRIPTION: Accounts
n, development, and ma for revenue received
intenance of new conse from the State of Colorado
rvation sites within Weld County, to be
used for the
RESOURCES BUDGETED
PersonnelallilliklIMIIIIIIIIINallinalla
CURRENT FY REQUESTED RECOMMENDED
NEXT FY NEXT FY
>r IMNMMIMulirn103,243 '
Gross Count Cost 93,000 $106,449
IMEMIN 160 338
firlatiallilli Bal.
160,338
Net Coun Cost 151,000
151,000
Bud.et Positions �■ 151,000
$ 0-
SUMMARY OF CHANGES:
SUMMARY
RY parks The resources available in this fund for 1987
County are estimated
$151 $00. leaving $are 1 for to cost are ,e00i
other $t in 49 (Island Grove mated to be
projects 1987. $92,000, and Missile
OBJECTIVES: See criteria following Administrative Recommendation.
Maw WORKLOAD MEASURES
ESTIMATED PROJECTED
CURRENT FY
NEXT FY
FINANCE/ADMINISTRATIVE RECOMMENDATION:
The following lists the requested
h loeoy gnd : projects and the Board's adop
ted policy regarding use
oIn accordance with
and accordance
tf the Board of Count
Weld County Conservation Commissioners
policy, the criteria for use
1. To maintain and develop the two existing county parks.
(CONTINUED ON NEXT PACE)
-174-
BUDGET UNIT SUMMARY
(CONTINUED)
AGENCY/DEPARTMENT NAME: CONSERVATION TRUST FUND
BUDGET UNIT TITLE AND NUMBER: Conservation Trust Fund -
- 15-1943
FINANCE/ADMINISTRATIVE RECOMMENDATION:
2. Projects must enhance the quality of life for the citizens of Weld County
3. Projects must contribute to or complement the economic development activities
of Weld County.
4. Projects must have an area impact or significance.
5. Funds used for local community projects must have substantial local support.
6. Outside of existing county parks, no operating funds shall be contributed to
projects.
RE UESTS:
MISSILE SITE•
----�_• Missile Site request from the Conservation Trust of
$14,449, up
$227 over 1986. Increases are attributable to utility and repair costs.
EXHIBITION BUILDING: City of Greeley has requested $125,505 for maintenance of .the
building plus $10 367 for improved heating and air conditioning,
carpet. Operations are up p
is pet. pe, by $53,505 from $72,000 in 1986. An additional p$16,000osition
for onw
$10,000 increase in utilities, plus all repair and supply
Net costs for past position
years are $50,274 (1984) ; $60,352 (1985) ; and $72,000x(1986) .
GETS: In order to keep the original policy commitment regarding the Civic Audi-
torium, a grant of $51,500 was anticipated in 1987 to the City of Greeley leaving
No
$165,536 to melt the $500,000 original commitment in 1988-91, grant re-
quests from other municipalities were solicited for 1987.
other
MUSEUM: The Weld County Historical Society has requested funding to establish a
museum. A proposal to use the Missile Site for some storage with
portable dis-
plays in libraries or compatible private facilities is recommended.
SUMMARy: Based upon the above request, the requests exceed the revenue projection:
Request
152211 dnd
Missile Site
Island Grove Maintenance $ 14,449 $ 14,449
Island Grove Capital 125,505 92,000
Civic Auditorium 26,367 10,367
Museum 51,500 30,000
TOTAL 5,000 4,184
Revenue (Same as 1986) $222,821 $151,000.
151,000 15000
EXCESS REQUESTS
$ 71,821 $ -0-
-175-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME:CONTINGENCY FOND
BUDGET UNIT TITLE AND NUMBER: Contingency Fund -- 16-9020
DEPARTMENT DESCRIPTION: The Contingency Fund exists to cover reasonably unforeseen expenditures or
revenue short-falls.
RESOURCES ACTUAL BUDGETED REQUESTED RECOMMENDED
LAST FY CURRENT FY NEXT FY NEXT FY
Personnel
Services/Supplies $ -0- $730,502
$700,000 $700,000
Capital/Credits
Gross County Cost -0- 730,502
700,000 700,000
Revenue 0- 32,613 49,000
49,000
Net County Cost $ -0- $697,889
$651,000 $651,000
Budget Positions
SUMMARY OF CHANGES: The Contingency Fund is funded at the level of $700,000, the same
as 1986.
OBJECTIVES:
n/a
WORKLOAD MEASURES ACTUAL ESTIMATED PROJECTED
LAST FY CURRENT FY NEXT FY
n/a
FINANCE/ADMINISTRATIVE RECOMMENDATION:
It is recommended that the amount of $700,000, coupled with the $500,000 carry-over fund
balance in the General Fund be retained, especially with all the uncertainty of federal
funding and oil and gas tax collections in 1987.
-176-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: SOLID WASTE
BUDGET UNIT TITLE AND NUMBER: Solid Waste Fund -- 22-9540
DEPARTMENT DESCRIPTION: This fund accounts for revenue received from a surcharge on dumping fees at
solid waste disposal sites for the purpose of combatting environmental problems and for further improvement and
development of landfill sites within the County.
RESOURCES ACTUAL BUDGETED REQUESTED RECOMMENDED
LAST FY CURRENT FY NEXT FY NEXT FY
Personnel
Services/Supplies $ 15,495 $ 90,000 $ 90,000 $ 90,000
Capital/Credits
Gross County Cost 15,495 90,000 90,000 90,000
Revenue /Fund Bal. 93,409 90,000 90,000 90,000
Net County Cost t (77,914) $ -0- $ -0-
Budget Positions -- --
SUMMARY OF CHANGES: Funded at anticipated revenue level of fees at $90,000. $22,000
is committed to offset environmental health costs ($12,000) and trash pickup program
($10,000) . The remaining is unallocated for road maintenance or other related needs
to the solid waste program in Weld County.
CM3JEC111/ES: Mitigate the impact of solid waste sites in Weld County.
WORKLOAD MEASURES ACTUAL ESTIMATED PROJECTED
LAST FY CURRENT FY NEXT FY
n/a
FINANCE/ADMINISTRATIVE RECOMMENDATION:
The Board should consider the undesignated funds for future use. Areas of need discussed
in addition to routine cleanup are:
Road Access:
Repair to Roads 6 & 7 accessing Erie Landfill that were damaged prior to the
building of Road 5.
(CONTINUED ON NEXT PAGE) -177-
BUDGET UNIT SUMMARY
(CONTINUED)
AGENCY/DEPARTMENT NAME: SOLID WASTE
BUDGET UNIT TITLE AND NUMBER: Solid Waste Fund -- 22-9540
FINANCE/ADMINISTRATIVE RECOMMENDATION:
77th Avenue (2 miles south from Highway 34) to access Greeley/Milliken Landfill.
Road 18 and 54 near liquid waste sites.
Engineering is to study these roads in 1986 and make recommendations to the Board.
Cleanup:
Funds could be earmarked as a contingency to cleanup illegal sites or hazardous
waste problems, such as the Keenesburg site problem.
Transfer Stations:
• The possibility exists that some subsidy from this fund could be required to
support transfer station activities in less populated areas where landfills do
not exist in the eastern and northern portions of the county.
Environmental Health:
Funds have been designated to support Environmental Health's efforts to inspect
disposal sites and handle illegal dumping situations ($12,000) .
-178-
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CAPITAL PROJECT FUNDS SUMMARY
Capital Project Funds are established to budget for financial resources used
for the acquisition or improvement of the capital facilities of the County.
A detailed Long Range Capital Plan for 1987 - 1991 is presented in this
section and relates to the specifics of the 1987 capital project budgets.
The Capital Expenditures fund accounts for various capital improvement
projects on County buildings. The program is funded at $300,000 with the
sources being property tax ($200,000) , SOT ($14,000) and carry-over fund
balance ($86,000) . Projects anticipated include carpeting in the Centennial
Center and Social Services Building ($29,200) , grader shed ($30,000) ,
special projects ($30,850) , and the remainder earmarked as a reserve for the
Phase III of the Jail in 1988-89.
The Revenue Sharing Contingency Plan of 1986 allowed the county to
"catch-up" on a number of capital needs, specifically jail expansion,
courthouse expansion and remodel, grader sheds, air conditioning at Social
Services, and correction of the Centennial Center plaza problems. The
Library District has corrected the roof and drainage problems of the Library
facility.
The Hospital Capital Fund accounts for the revenue and related capital
expenditures as required by the North Colorado Medical Center Board of
Trustees, an autonomous board responsible for administering the operations
of the hospital. Hospital capital is funded at the 1986 level plus 5%
increase in property tax ($306,311) , specific ownership tax ($27,639) , and
interest ($250,000) for a total of $853,950. Adjustment due to arrangement
between the Health Department and Family Practice Residency Program is
anticipated to continue in 1987.
The I987 Capital Budget will impact the operating budget in the following
manner. The jail modifications will increase the work release bed capacity
by 30 beds. With the Sheriff's policy of making the work release program
self-sufficient with fees from inmates, the gross budget should go up in
1988-89 between $50,000 and $60,000, but net county cost should not
increase. The 1987 project of carpeting is a capital upkeep item not
impacting operational costs. The grader shed is a replacement that will
reduce utility costs without any other operational cost impacts. The
remodel in the Motor Vehicle area will accommodate the new state computer
costs. Thee new computer system Courthouserem del done will save the County $141 ,540 computer
in 1986 will allow formorenefficient
use of the building, but will not impact utility or maintenance costs.
Since the State funds all court operational costs, except building
maintenance, the added staffing will be a State cost versus county. The
Courthouse Annex completed in 1986 with excess space to rent in 1987 will
generate a positive cash flow regarding expenses until the excess space is
used entirely by the county or court system in five to ten years. Other
projects involve energy efficiency done in 1986 and have resulted in lower
utility costs after the initial capital outlay costs for a new hot water
system in the Centennial Complex and mechanical system in the Social
Services building.
-179-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: NORTH COLORADO MEDICAL CENTER
BUDGET UNIT TITLE AND NUMBER: Hospital Capital -- 31-1944
DEPARTMENT DESCRIPTION: Mill levy to fund capital improvement of North Colorado Medical Center. Maximum
mill levy is 3 mills.
ACTUAL BUDGETED REQUESTED RECOMMENDED
RESOURCES LAST FY CURRENT FY NEXT FY NEXT FY
Personnel
Services/Supplies
Capital/Credits $568,047 $583,950 $583,950
Gross County Cost 568,047 583,950 583,950
Revenue /Fund Bal. 276,322 277,639 277,639
Net County Cost $291,725 $306,311 $306,311
Budget Positions
SUMMARY OF CHANGES: Hospital capital is funded at the 1986 level plus 5% increase in
property tax ($306,311) , specific ownership tax ($27,639) , and interest ($250,000) for
a total of $583,950. Adjustment of $105,825 due to arrangement between the Health
Department and Family Practice Residency Program is anticipated to continue in 1987.
OBJECTIVES:
n/a - capital expenditure
ACTUAL ESTIMATED PROJECTED
WORKLOAD MEASURES LAST FY CURRENT FY NEXT FY
n/a
FINANCE/ADMINISTRATIVE RECOMMENDATION:
Recommend approval.
-180-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: CAPITAL EXPENDITURES
BUDGET UNIT TITLE AND NUMBER: Capital Expenditures -- 34-1944
DEPARTMENT April
p DESCRIPTION:5, 1984• Capital
rmerly Publicts Worksfor
- County Buildings use.
Fund (Fund 33).
in accordance with CRS
29-1-301 (1.2)RESOURCES ACTUAL BUDGETED REQUESTED
LAST FY CURRENT FY NEXT FY RECOMMENDED
Personnel NEXT FY
Services/Su lies
Ca ital/Credits $1,167,950 $1,041,013
$ 300,000 $ 300,000
Gross Count Cost 1, 167,950 1,041,013
300,000 300,000
Revenue /Fund Bal. 783,156 483,488
100,000 100,000
Net Count Cost 384 794
557 525 $ 200,000 $ 200,000
Bud et Positions
SUMMARY OF CHANGES: The Capital Expenditure Fund is funded at $300,000 with the sources
being property tax ($200,000) , SOT ($14,000) and carry-over fund balance ($86,000) .
Projects anticipated include carpeting in the Centennial Center and Social Services
Building ($24,200) , grader shed ($30,000) , special projects ($30,850) , and the remainder
earmarked as a reserve for the Phase III of the Jail in 1988-89.
OBJECTIVES:
n/a - capital expenditure
WORKLOAD MEASURES ACTUAL ESTIMATED PROJECTED
LAST FY CURRENT FY NEXT FY
n/a
FINANCE/ADMINISTRATIVE RECOMMENDATION: Budget reflects the 1987 funding level of the Pro-
posed Long Range Capital Plan for 1987 - 1991. The actual plan is on the pages im-
mediately following.
Recommend adoption of the Proposed Long Range Capital Plan for 1987-1991. The only con-
sideration for funding is the 1987 portion of the plan. The remaining years are policy
direction for planning purposes. The plan should be reviewed annually by the then current
Board for appropriate amendments.
It is recommended that the special projects requested be screened and only critical and
cost effective ones be approved. An attached list itemized them.
-181-
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—182—
WELD COUNTY
LONG RANGE CAPITAL PROJECTS
FIVE-YEAR PLAN
1987 - 1991
Presented By: Donald D. Warden, Director
Finance and Administration
September, 1986
-183-
LONG RANGE CAPITAL PROJECTS
FIVE YEAR PLAN
1987 - 1991
INTRODUCTION:
Section 14-3 of the Weld County Home Rule Charter provides:
"The Board may require that the Director
of submit, at the time of submission of the annual nbudget, a ance and Purchasing
five—year
capital improvements program and budget. Such program shall include
recommended
anticipated projects, construction schedule, estimate
anticipatedn a res enue sources, methods of financing, of cost,
e
may be required." and such other
This five-year plan projects capital projects for 1987 - 1991.
The recommended program for capital construction is intended as a
to be adjusted by the Board of County Commissioners on an annual basis. It
represents flexible guideline
and it goals for organizing solutions to county program needs,
is intended to provide the Board of County Commissioners with the
perspective for making fiscal policy decisions. Annual modifications in the
plan will reflect necessary adjustments and priorities, changes in
programs,
and readjustments of other county fiscal requirements.
This report has four (4) sections:
1 . Introduction
2. Financing Alternatives
3. 1987 - 1991 Five-year Plan
4. 1987 Budgetary Impact
The Section on financing recommends a program for financing the next five
years' capital construction. This section lists the various sources of
revenue currently available to the county, and the alternatives available
for financing the remainder of the capital projects program.
1991 five-year plan section provides a list of recommended
time schedule for the next five fiscalAdditionally,
The 1987 -
justification for the recommendationyears. Additionall , it and v the
e
recommended and attempts to enumerate it provides
ad
solutions for the capital improvementsproblems and
five years. The project section describes each
provides information on the existing program over the next
the financing esrecommended project,lti and
plan for each situation, the proposed solution, and
project.
The last section of the report provides a recommended
capital construction program. It pspecifices detail t budget for the
recommended project and the impact on 1987 count regarding
county budget, each
-184-
FINANCING ALTERNATIVES
-185-
FINANCING
Overview:
There are a number of ways to finance capital improvement projects. Some of
the most common methods of financing capital improvement projects are:
1 . Pay as you go:
Pay as you go is a method of financing capital projects with
current revenues -- paying cash instead of borrowing against
future revenues. Pay as you go has several advantages. First, it
saves interest cost. Second, pay as you go protects borrowing
capacity for unforeseen major outlays that are beyond any current
year's capacity. Third, when coupled with regular, steady
completion of capital improvements, and good documentation and
publicity, pay as you go fosters favorable bond ratings when long
term financing is undertaken. Finally, the technique avoids the
inconvenience and considerable cost associated with marketing of
bond issues, advisors, counsel, printing, etc.
However, there are practical and theoretical disadvantages to a
pay as you go policy. First, pay as you go puts a heavy burden on
the project year. Second, it creates awkward fluctuating
expenditure cycles which do not occur with extended financing.
Third, a long life asset should be paid for by its users
throughout it's normal life rather than all at once by those who
may not have the use of it for the full term. And finally, when
inflation is driving up construction costs, it may be cheaper to
borrow and pay today's prices rather than wait and pay tomorrow's.
2. All borrowing policy:
An all borrowing policy or a substantial reliance on debt
financing is one approach. The annual available resources could
be used entirely for debt service with the size of the annual
resources setting the limit upon the amount that could be
borrowed.
3. Capital reserve:
A capital reserve plan is an approach where the annual resources
available could be accumulated in one or more capital reserve
fund, the amounts invested, and when any funds become adequate to
pay for a proposed project, the fund could be expended. This is a
good approach when a county has a capital requirement which can
wait. Accumulation of the necessary capital funds over a period
of time is a feasible approach, assuming a relatively stable
construction dollar. HB 1111 passed in 1982 specifically provides
for a capital improvements trust fund for capital reserves.
-186-
4. Partial pay as you go policy:
A partial pay as you go policy is a common approach. Some of the
annual resources would be used to finance capital improvements
directly, and the remainder would go for supporting a debt
program. Even if a local government pursues a borrowing policy,
an initial down-payment out of current revenues is a possibility.
A customary 5 - 10% down is a limited pay as you go policy, and
assures that the voters authorizing the approval will make a cash
contribution that all of the burden will not be postponed.
5. Joint financing:
An ever increasing number of cities and counties are finding that
there is benefit to both jurisdictions for joint development of a
project. The construction of a city/county office building and
recreational areas are examples. This avenue of funding and
planning capital projects normally is advantageous to both
jurisdictions.
6. Lease/Purchase:
Local governments can utilize lease/purchase methods for needed
public works projects by having it constructed by a private
company or authority. The facility is then leased by the
jurisdiction on an annual or a monthly rental. At the end of the
lease period, the title to the facility can be conveyed to the
jurisdiction without any future payments. The rental over the
years will have paid the total original cost plus interest. This
method has been used successfully in a number of jurisdictions.
The utilization of a building authority would fall under this
category of financing.
Numerous considerations are involved in the selection of the foregoing
patterns, or some combination thereof:
1. Political realities may preclude utilization of one or more of the
above alternatives. For example, the passage of general
obligation bonds as a debt financing mechanism has not met recent
success at the polling places in most jurisdictions.
2. The pay as you go concept has three distinct advantages.
a. It preserves great flexibility to the county for future
periods of economic recession or depression but not piling up
large fixed charged costs.
b. It avoids the payment of interest charges.
c. It imposes upon public officials the full political
responsibility for levy of the taxes necessary to pay the
local share of such projects.
-187-
3. The debt financing approach has the advantage of permitting the
cost to be spread over a generation of current users of public
facilities, thereby imposing upon each a significant portion of
the cost of each project.
4. In an inflationary period, one must take into account the extent
to which prepayment for capital outlay is warranted, when the
opportunity for repayment of the principal and interest in dollars
that are less expensive can be arranged.
5. During periods of rapid price rise, the time delay necessary to
accumulate downpayments or full pay as you go resources invites
higher costs which may wipe out most, if not all, of the
advantages of non-payment of interest.
In the five-year capital projects plan, a combination of funding methods
will be recommended to finance the capital construction in the next five
years in an attempt to balance the economy of a payment in full program with
the fairness of sharing the burden among present and future taxpayers.
This recommended financial program reflects consideration of many factors,
including the availability of cash, anticipated interest rates at the time
of construction, and projected inflationary cost increases that would result
from project delays.
-188-
DEBT FINANCING
Before discussing specific types of borrowing, it is appropriate to review
some of the basic constitutional statutory provisions which generally are
applicable to debt financing.
Article XI, Section 6 of the Colorado Constitution provides that no debt may
be created by a political subdivision of the State, unless the question of
incurring such debt has been approved by a majority of the qualified
electorate voting. Any obligation paid, or contracted to be paid, out of a
fund that is a product of a tax levy is a debt within the means of the
Constitution (Trinidad vs. Haxby, 136 Colorado 168, 315 p 2d 204 -- 1957) .
In addition to voter's approval, Article XI, Section 6 requires the debt be
incurred by adoption of a legislative measure which is irresponsible until
the indebtedness is fully paid or discharged. The ordinance must:
1 . Set forth the purpose for which the bond proceeds will be applied,
and
2. Provide for the levy of the tax which, together with such other
revenues as may be pledged, will be sufficient to pay the
principal and interest of the debt.
The Constitution delegates to the Legislature the duty to establish
statutory limitations on the incurrence of debt. The total amount of debt
which a county may incur may not exceed 3% of the assessed value in the
county, which is slightly over twenty-four million dollars in Weld County.
In addition to the State Statute, Section 14-6 of the Weld County Home Rule
Charter specifies:
"The incurring of indebtedness by the County and the issuance of
evidences of such indebtedness shall be authorized, made and executed
iu accordance with the laws of the State, including the borrowing of
money to fund County projects, the pledging of project revenues and
repayment thereof, and the issuance of revenue warrants, or revenue
bonds, or other forms of evidence of such obligations."
Before discussing particular types of bonds, it is appropriate to review
some of the general characteristics of bonds. Bonds mature serially, that
is, a portion of the principal is retired over the entire term of the bond
issue. Interest on municipal bonds is free from Federal Income Tax which is
an important feature to prospective purchasers. The term or the length of
time to maturity of municipal bonds can vary considerably. Generally, the
last maturing bond comes due from between ten to thirty years from the date
of issue. Normally, the longer the maturity of the bonds, the higher the
yields or return on investment, demanded by the market price. Thus, a bond
issue that runs thirty years will pay a higher net effect interest rate than
a bond issue that runs twenty years.
-189-
General Obligation Bonds:
General obligation bonds are secured by a pledge of the full faith, credit
and taxing power of the County. The County is obligated to levy sufficient
taxes each year to pay the principal and interest of the bond issue.
Consequently, general obligation bonds are a debt subject to the
constitutional and statutory provisions discussed earlier. Because the
issue of general obligation bond pledges its full faith and credit and
agrees to levy the ad valorum taxes necessary to repay the principal and
interest of the bond, they are generally agreed to be a more secure
investment than other types of bonds. Thus, the major advantage of general
obligation financing is the low rate of interest as compared to the interest
of other types of bonds. The law permits general obligation bonds to have a
thirty year term; however, general obligation bond issues usually have terms
of twenty years or less.
General obligation bonds, in addition to being secure by full faith and
credit of the issuer, may provide additional security by pledging certain
available revenues.
The major disadvantage of general obligation bonds is the fact that it does
require voter approval prior to issuance. Voter resistance to increased
taxes may prevent a successful bond election.
Revenue Bonds:
Revenue bonds are not a debt in the constitutional sense. They are secured
by the revenue derived from the project to be constructed and not by pledge
of the full faith, credit, and taxing authority of the County. Projects
typically financed by revenue bonds include airports, stadiums, and park
facilities.
Although it may seem possible to pledge any non-tax revenues for payment of
revenue bonds, there should be a relationship between the type of revenue
pledged for payment of the bonds and the project to be financed. Although
revenue bonds need not comply with the constitutional statutory provisions
generally applicable to a debt, there are several statutory provisions which
may affect the issuance of certain types of revenue bonds and the statutes
should be consulted for specific provisions regarding the issue of revenue
bonds if ever this is explored.
Revenue bonds are considered to be less secure than general obligation bonds
because of the inability of the issuer to levy taxes to assure the payment
of principal and interest. Thus, there is normally a higher interest rate
on revenue bonds. The term of revenue bonds is often beyond twenty years,
frequently as long as thirty.
The concept of issuing revenue bonds is based on the theory that certain
projects which benefit only certain individuals should be self-supporting
and should be paid for by the user of that project rather than the populace
as a whole. Thus, airport revenue bonds are paid for by air travelers and
airline and parking revenue bonds are paid for by parkers, etc.
-190-
In order for a County to issue a revenue bond, the system which generates
the revenues to repay the principal and interest of the bond must:
1. Have a good operating history documented by audited figures, or
2. Reflect good debt service coverage through use of a feasibility
study done by a recognized expert in the field.
In analyzing a revenue bond issue for underwriting, an investment banker
will look not only at operating statistics and coverages, but also at more
basic elements, such as the necessity of the service, control over
competition, and delinquency procedures. Revenue bonds are becoming more
popular because they do not require voter approval and do not apply in
statutory debt limits.
Leases:
A less traditional means of financing County facilities is through a lease
arrangement. A lease is executed with the County, which gives the County
the option to purchase the equipment or facility during the term of the
lease. All or part of the lease payments may be applied to the purchase
prices.
A bona fide lease option agreement is not a debt; however, an installment
purchase program is a debt. A bona fide lease/option agreement is
characterized by two factors:
1. Annual rental payments with automatic renewal of the lease unless
terminated by either party, and
2. No obligation on the part of the local government to purchase the
property if the lease is terminated.
Also, some court cases indicate the annual rental must be paid from
non-property tax revenues to avoid the conclusion of the lease as a general
obligation. Upon exercise of the option, the local government obtains full
legal title to the property. Leases of this nature are distinctively
different from more conventional means of financing. Of primary importance
is the security which underlies the lease period. It is not a promise to
levy taxes or a pledge of revenues from the system. Rather, it is a promise
to pay most always only from one year at a time with an implied intention to
continue payment until ownership is transferred. As ultimate security, the
holder of the lease may look to the asset which is being leased in the event
of a default.
There is little statutory or judicial guidance in the area of leases of this
type, and the obligation to continue lease payments until title transfers is
a moral, rather than a legal obligation. As a consequence, the underwriting
or placement of a lease is more difficult than the underwriting of
conventional bonds. The term of the leases generally are short, usually
from 7 - 10 years. Because the security underlying the lease is not good
compared with conventional financing, interest rates on leases are much
higher.
-191-
Building Authority:
A building authority is a non-profit corporation which is formed generally
at the prompting of the governing body of the County or local jurisdiction
which also appoints the Board of Directors of the corporation. The
directors usually are elected officials, employees, or other public spirited
citizens.
The building authority issues its own bonds to finance a facility. To
achieve the same lower interest rates that the traditional municipal bonds
enjoy, the building authority must obtain a ruling from the Internal Revenue
Service that the interest on the authority's bonds is exempt from Federal
Income Tax. Such an exemption is granted if the IRS finds that the
authority's bonds are issued on behalf of a political subdivision, which is
determined based upon the following factors which are detailed in IRS
Revenue Ruling 63-20.
1. The authority engages in activities which are essentially public
in nature.
2. The corporation is not organized for profit.
3. The corporate income does not inure to the benefit of any private
person.
4. The political subdivision has a beneficial interest in the
corporation, while the indebtedness is outstanding, and it obtains
full legal title to the property on the retirement of the debt.
5. The corporation has been approved by the political subdivision
which has approved the specific obligation of the corporation.
Like municipal bonds, bonds issued by a corporation usually are subject to
registration and other requirements of the Securities Act of 1933 and the
Security Exchange Act of 1934. After receiving a favorable ruling from the
IRS, a no "action" letter should be secured from the Security and Exchange
Commission, exempting the authority's bonds from these requirements. The
authority then issues bonds pledging the annual rental payments as security
after issuance of bonds and construction of acquisition of the facilities,
the authority leases the facilities to the County. Again, this must be a
bona fide lease and possess all the elements discussed under Lease/Purchase.
The bonds of a building authority are similar to municipal leases in the
manner in which they are viewed by investors. As with a simple municipal
lease, building authority bonds are less secure than general obligation or
revenue bonds. As a result, bonds issued through a building authority bear
higher interest than more secure issues.
-192-
BUILDING AUTHORITY FINANCE
The Philosophy:
Tax-exempt financing is available through a building authority with the
issuance of bonds when the facilities financed are for public purposes and
the benefit is to the sponsoring public entity.
The Building Authority: ion Co ntyditself tho The yC County adopts da resolution callingtfor the created the
is a creation of
the Building Authority and directing counsel to draw Articles of
Incorporation and By-Laws in compliance with Colorado Statutes. A board of
directors is formed. The board may consist of County Commissioners
or
administrative personnel or individuals not associated with any public
entity.
Tax-Exemption of Interest:
Once the non-profit corporation is created the tax-exempt nature of interest
st
paid on the corporation's bonds must be assured. A revenue ruling
requested from the Internal Revenue Service on the non-profit
ttatus of Ruling
corporation pursuant to Internal Revenue Code>
103(a) and Revenue
63-20, and on the tax-exempt status of interest paid.
Such an application involves considerable work and a detailed analysis
the situation is presented to the Internal Revenue Service.to pubcAmongother
purpose, ter
things the application includes information asoato lease p terms he
County, the agency using the facilities, the prop
title reversion to the County and the proposed method of financing.
Cor orate Bonds and the S.E.C. :
As corporate bonds, as opposed to purely municipal bonds, are subject to
reistraton s and ission, a
no-actions letterumuste be obtained from rthe eS.E C. Exchange
In essence�the S.E.C.says that no authority/non-profit action be taken
orporationarenot registered.bonds of the building
The Purchase Contract:
Once the Building Authority is created with powers to act it may enter into
a contract to purchase the facility. The contract should be subject to:
1 . A favorable revenue ruling from the Internal Revenue Service.
2. Receipt of an S.E.C. no-action letter.
3. Finalization of financing.
-193-
The Bond Issue:
When all legal and tax questions are answered the Building Authority may
issue bonds for the purchase of the facility. Normally the bonds are sold
airectly to an underwriter who then resells the bonds to the ultimate
investor.
The Bonds that are issued will be an obligation of the Building Authority
only and not a debt obligation of the County.
Summary of Steps and Timetable
The steps involved in this financing and the timetable for accomplishing
these steps are as follows:
Step Approximate Dates
1. Receipt of proposals, decision
to proceed. Retention of under-
writer & counsel. 3 weeks
2. Incorporation process 2 months
3. Contract negotiation 2 months
4. Request for revenue ruling 3 months
5. Request for S.E.C. no-action
letter 4 months
6. Bond resolutions, bond closing,
purchase closing 1 month
The County Lease:
Upon the issuance of the bonds and the purchase of the building by the
building authority, the County would lease the building from the authority.
The lease would be from year-to-year with automatic renewal unless otherwise
terminated. A county lease for any period in excess of one year constitutes
a debt and must be approved by voters.
The Boud Security:
The security of the bond holders may be only in a pledge of lease revenues
by the authority. The bond holders may also have a first mortgage lien on
the building. The combination of the two results in a more secure bond and
a correspondingly lower rate of interest.
-194-
Partial Seller Financing:
Depending on factors such as the seller's motivation, and whether or not
there is an existing loan on the building and negotiations, a bond issue can
be for only the amount necessary for a down payment. The sellers could
carry back the balance, receiving installment sale tax benefits on the
capital gains. A revenue ruling would be required but interest paid on a
promissory note to the seller may also be tax exempt. The total cost, then,
to the County and the building authority may be substantially lower on this
basis.
-195-
COMPLETED CAPITAL PROJECTS
1981 - 1986
-196-
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-197-
1987 - 1991
FIVE YEAR
CAPITAL PROJECTS PROGRAMS
-198-
CAPITAL EXPENDITURES FUND
-199-
RESOURCE CAPACITY
*****************
FUNDING SOURCES
*****************
CASH FLOW ANALYSIS
-200-
PUBLIC WORKS CAPITAL FUND
RESOURCE CAPACITY
1987 - 1991
PROPERTY
TAX OTHER TOTAL
1987 $ 200,000 $ 14,000 $ 214,000
1988 210,000 14,000 224,000
1989 220,000 15,000 235,000
1990 231,000 15,000 246,000
1991 242,000 16,000 258,000
-201-
CASH FLOW ANALYSIS
CASH
REVENUES EXPENDITURES RESOURCES
BEGINNING ENDING
FUND CAPITAL FUND
BALANCE FUND CONSTRUCTION BALANCE
1987 $ 86,000 $ 214,000 $ 300,000 $ -0-
1988 -0- 224,000 224,000 -0-
1989 -0- 235,000 235,000 -0-
1990 -0- 246,000 246,000 -0-
1991 -0- 258,000 258,000 -0-
-202-
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-203-
JAIL MODIFICATION
Existing Situation:
The Weld County jail was experiencing limitations on its capacity to handle
the number of inmates being detained. As a result a jail task force was
appointed by the Board to study the jail capacity and jail program. A jail
consultant and architect was engaged to study the facility.
Proposed Solution:
Based upon the Jail Task Force Recommendation issued in June, 1984, it was
recommended that the jail be remodeled in two phases. The first phase cost
$781,000 in 1985, and the second phase is estimated to cost $350,000 in
1988-89.
Financing:
It is recommended that the remaining renovation costs of approximately
$314,950 be reserved on a cash basis out of the 1987-88 budget. Actual
payment would be done in 1988-89.
-204-
COURTHOUSE AND ABNER
Existing Situation:
The Weld County Courthouse is an old facility
deal of renovation in the last few and accommodate the thecontemporary s that has undergone a court
years in order to maintain ss The Courthouse
structure
has had rewiring, Pace needs that it houses.
svahad installed, plumbing corrections energy efficient measures,
elpainting, •
major renovation was accomplished at renslithtl ion of the , new
adding exterior. In 1986 a
an annex building across the street with uaneaddir tional �7 as 000 eq. ft.
Even with the major renovation it is anticipated over the
period that additional courtrooms will be required to accommodate sq' ft.
fudges or referees, next five year
as well as, the restructuring ommodate either un new
proposed Solution: of support functions.
In analyzing the situation at the Courthouse, it must be appreciated
the basic maintenance or major maintenance needs
retain the Courthouse as that
retained o a a viable facilitto continue in order to
continual basis over the facility. This r maintenance will be
basic deficiencies caused by next few years in
position to accommodate age. In addition, order to correct
future court expansion of that facility county must to o in a
ultimate outlay of an additional facility.
to avoid the
It is proposed that $160,000 be budgeted in 1990-91
Plan to accommodate the renovation of in the Candtal Projects
o
courtrooms and reorganization of s the Courthouse and there are funds space for support functions. Annex for
such as car provided over the five year period for basic In addition,
pet. maintenance
pins:
It is recommended that in the Long Range Plan that $160,000 be budgeted in
1990-91 to accommodate the courthouse renovation and furnishings.
-205-
ROAD BUILDING/WAREHOUSE
Existing Situation:
In 1982, the county acquired property on 11th Avenue to become the site for
all Road and Bridge functions. The site, as purchased, included an office
area, shop, and one adjacent building. It is proposed that this site be
developed to become the Road and Bridge Headquarters to house all Road and
Bridge operations and storage facilities for the county.
Weld County's Road and Bridge operations are currently spread out at three
branch locations in Johnstown, Ault and LaSalle. Certain efficiencies could
be achieved by having a central location of all Road and Bridge functions
which would enhance the management control and effectiveness of the Road and
Bridge Department. In addition, the county currently does not have adequate
facilities for central warehousing for all office supplies, maintenance
parts for Buildings and Grounds, parts and supplies for garage operations,
and other general storage requirements for the Road and Bridge operation.
As a result of this, the benefits of volume buying and inventory control
cannot be practically taken advantage of by Weld County due to the lack of
the proper warehouse area and warehouse function.
Proposed Solution:
It is proposed that the 11th Avenue Road and Bridge Headquarter site be
developed into a centralized Road and Bridge area. It is proposed that a
facility be developed that would provide adequate garage area, warehouse
area, and adequate fenced parking for all county equipment. If a facility
of this nature can be developed by the county, it would mean that the three
outlying shops could be eliminated.
A warehouse facility would enable Weld County to develop a proper supply and
warehouse function and also free some space in the Centennial Complex for
further expansion to cope with the growth pressures the Centennial Complex
is experiencing.
It is proposed that the development of this site be done in 1988-89. In
addition to the current facilities located at the 11th Avenue site, it is
proposed that in 1987-88 a site plan be developed that would encompass all
of the above functions.
Financing:
It is recommended that the county utilize current funding.
-206-
GRADER SHEDS
Existing Situation:
The county currently has 18 grader sheds throughout Weld County, to
accommodate the road maintenance function in all sectors of the county. The
grader sheds are in various conditions, ranging from good to need for
replacement. Five have recently been replaced, Nunn (1981) , Gwonda (1982) ,
Vim (1983) , Mead (1985) , and Rockport (1986) . Replacement order is as
follows: Keenesburg (1987) , Gilcrest (1988) , Kiowa (1989) , and Keota
(1990) .
Proposed Solution:
An analysis of existing grader sheds has been done to determine which are
required for the operational functions of the road maintenance operation in
Weld County. In the process some have been sold, others consolidated, and
some identified for replacement. In cases where existing grader sheds will
accommodate the maintenance function, it is suggested that there be
attention given to those sheds that need to have maintenance or major
improvements done to them. Where necessary, replacement sheds have been
identified.
Financing:
It is recommended that the county budget $30,000 per year over the next four
years to construct, maintain, and upgrade the numerous grader sheds
throughout the county. The funding mechanism should be a pay as you go
function out of the Capital Projects Fund.
-207-
ENERGY EFFICIENCY
Existing Situation:
With the rise of utility costs and the energy crisis, it is essential that
Weld County continue to be in a position to properly respond to the energy
conservation programs that will be required during the next few years. Much
has already been done in the area of energy efficiencies, and efforts on a
smaller scale must continue.
Proposed Solution:
In order to avoid high energy and utility costs in county buildings, it is
suggested that the county continue to identify energy conservation
opportunities in all county facilities that are owned and continue to take
corrective action to make county facilities as energy-efficient as possible.
The cost of this particular capital project could be recovered substantially
in a few years due to the pay back in energy savings.
Financing:
It is recommended that the county budget $4,000 in 1988 and $5,000 per year
thereafter for the energy efficiency program. Where cost effective payback
opportunities exist, additional funds should be considered with offsets to
the operating utility budgets impacted.
-208-
MISCELLANEOUS PROJECTS
Existing Situation:
Each year in the county there are several small projects to update or
renovate county facilities, provide for new county programs, remodel to
accommodate changing programs or meet new legal standards. An approach to
provide miscellaneous funds of this nature can assist the county in avoiding
the postponing of remodeling of facilities that will avoid cost or delay
potential savings to the county and the taxpayers. In addition, an approach
like this can also make better utilization of existing facilities in order
to avoid the acquisition of new space and facilities. Carpet replacement
should be included in this category.
Proposed Solution:
It is recommended that an amount of $20,000 per year in the Long Range
Capital Projects Plan be set aside for such projects.
Financing}
It is recommended that the county budget $30,850 in 1987 and $20,000 per
year thereafter for small projects. In addition, specific funds for carpet
replacement are suggested as follows: 1987 ($24,200) , 1988 ($20,000), and
1989 ($20,000) .
-209-
ACCUMULATIVE CAPITAL OUTLAY/CONTINGENCY
Existing Situation:
If Weld County is to embark upon a number of ventures in capital projects
over the next five years, it is suggested that the county proceed very
cautiously and very conservatively in the area of financing. In order to do
this, it is suggested that a contingency be set aside each year on a pay as
you go basis to accommodate unanticipated cost increases or emergency
situations that cannot be foreseen at this time. If the contingency amount
is accumulated over the next five years, it can be used as a reserve for the
capital projects program in future years, or it can be used as a funding
mechanism in years beyond 1991.
Proposed Solution:
Budget any carry—over amount each year as a contingency basis that
ultimately could be used to meet any contingency or emergency situation, or
could be used as an accumulation of capital outlay funds for funding of
projects beyond 1991.
Financing:
It is recommended that the county budget fund balance carry-overs in the
capital fund each year as a contingency.
-210-
MISCELLANEOUS FUNDS
-211-
AIRPORT
Existing Situation:
The Weld County Board of County Commissioners, with approval of the Airport
Master Plan, committed to participate in certain enhancements at the Airport
facility, especially enhancements that will insure the safety of the Airport
operation. If it is the decision of the Board to continue to participate in
the joint funding of the Airport facility with the City of Greeley, funds
should be provided for in the Long Range Capital Projects Plan to
accommodate the FAA ADAP program during the next five years.
Proposed Solution:
In the Long Range Capital Projects Plan from 1987 no funds are included to
accommodate capital improvements at the Weld County Airport. Should funding
be provided it should be for projects that have the emphasis of being safety
features and other essential enhancements for the current operation.
Financing:
No funding is included in the budget for 1987.
-212-
CONSERVATION TRUST FUND
Existing Situation:
With the passage of SB119 (The Colorado Lottery) , 40% of the proceeds of the
lottery are earmarked for Conservation Trust Funds in local governments.
The earning potential of the lottery is anticipated to be $150,000 per year.
The funds will have to be used for "the acquisition, development and
maintenance of new conservation sites or for capital improvements or
maintenance for recreational purposes on any public site". (Section
29-21-101 , CRS, 1973) .
Proposed Solution:
The Board has the option to use the funds in the following ways:
1. Maintain and improve Island Grove.
2. Maintain and improve Missile Site park.
3. Participate iu the performing arts center in Greeley.
4. Other project requests from throughout the County.
Policy issue.
-213-
ISLAND GROVE
Existing Situation:
Weld County and the City of Greeley currently have certain joint ventures
and commitments to develop the Island Grove facility. Some discussion has
been held regarding the creation of an Island Grove Park Authority for
development and management of the facility.
Proposed Solution:
If it is the determination of the Board of County Commissioners to continue
to participate in the development of the Island Grove facility, it is
recommended that Conservation Trust Funds from the lottery be used.
Financing:
It is recommended that the county finance any Island Grove enhancements with
Conservation Trust Funds resulting from the lottery.
-214-
OMORRINBOOMIIII
el minuesiE3
•_■ I
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IGS FUNDS
samic ■ 1
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. 1
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■•■
INTERNAL SERVICE FUNDS SUMMARY
Internal Service Funds are established to account for goods and services
provided to other departments of the County on a cost-reimbursement basis.
MOTOR VEHICLE FUND:
The Motor Vehicle Fund accounts for the revenue and costs generated by
equipment and vehicles rented to the Road and Bridge Fund and to various
departments of other County funds. The gross operating budget amounts to
$2,494,981 in 1987 with $1,025,257 budgeted for new capital equipment. Road
and Bridge uses $2,015,817 of the total operating budget, or 80.8%. The
budget reflects the continuation of the contract fleet management approach
adopted by the Board in August, 1984. The ARA contract shows a substantial
increase, but costs for parts appear to be justified based upon actual cost
records from ARA. The contract amount is still below the actual 1982 county
cost of $1,029,425. With inflation of 28.9% over the five year period, the
savings appears to be 29.8%, or $307,078 annually not considering fleet size
increase of over 15%. All budgets reflect costs at the higher contract
level. Depreciation is up to $926,663 versus $750,000 due to new equipment
acquisitions.
PRINTING AND SUPPLY FUND:
Printing and Supply provides printing services and the supply and store
function of the County. The total budget is $137,000 with $46,000 being
cost of supplies. The remaining is the printing function and the labor for
mail and supply functions.
COMPUTER SERVICES FUND:
The Computer Services Fund accounts for all computer services provided to
the County and other agencies on a cost-reimbursement basis. The gross
budget is $1,734,735. Final adjustments to the budget may be required after
determining the maintenance and development effort required for each user
during the budget hearing process. In addition, $100,000 is recommended as
a capital contribution to allow for equipment acquisition and reserve for
future upgrades. Depreciation has never been fully funded and this
contribution annually would move in that direction which is prudent planning
for the future.
INSURANCE FUND:
The Insurance Fund accounts for all insurance costs for the County. The
program is a combination of insured risks and protected self-insurance
risks. Gross budget costs are $751,484 in 1987 with a property tax levy of
$511 ,095. With Weld County joining CAPP July 1 ,1 986, the insurance program
can comfortably be funded at the 1986 funding level. Details of the program
are provided under the specifics of the fund summary.
-215-
PHONE SERVICE FUND:
Budget reflects total consolidation of phone service costs of $371,536 in
Weld County. Funding is at current level and reflects no capital upgrades.
Studies are being made to examine the costs and benefits of upgrading
systems for the main switch in the Centennial Complex. This issue will be
addressed in 1987 as information is available. Budget reflects
restructuring of organization and movement of CBO's to Communications
budget.
HEALTH INSURANCE FUND:
The Health Insurance Fund is funded with a premium decrease in 1987. Total
revenue would be $860,440, which will adequately fund 1987 anticipated costs
and still leave over $900,000 in the reserve fund. Weld County may have to
offer PEAK HMO in 1987, which could attract up to 15% of the enrollees.
Fiscal impact is uncertain. It is recommended that the county contribution
of $35.00 toward health be continued for the county and HMO if it is offered
with the employee paying the difference.
-216-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME:Is - MOTOR POOL
BUDGET UNIT TITLE AND NUMBER: Motor Pool Administration -- 61-9020
DEPARTMENT DESCRIPTION: Centralized motor pool support for Weld County. Contract for fleet maintenance
is included in this budget unit.
ACTUAL BUDGETED REQUESTED RECOMMENDED
RESOURCES LAST FY CURRENT FY NEXT FY NEXT FY
Personnel $ 1,491 $ -0- $ -0- $ 0
Services/Supplies 2,037,379 2,056,000 2,494,981 2,494,981
Capital/Credits
Gross County Cost 2,038,870 2,056,000 2,494,981 2,494,981
Revenue 2,070,127 2,112,125 2,593,446 2,593,446
Net County Cost $ (31,257) $ (56,125) $ (98,465) $ (98,465)
Budget Positions -- -- -- --
SUMMARY OF CHANGES: The ARA contract shows a substantial increase, but costs for parts
appear to be justified based upon actual cost records from ARA. The contract amount is
still below the actual 1982 county cost of $1,029,425. With inflation of 28.9% over the
five year period, the savings appears to be 29.8%, or $307,078 annually not considering
fleet size increase of over 15%. All budgets reflect costs at the higher contract level.
Depreciation is up to $926,663 versus $750,000 due to new equipment acquisitions. Total
operating budget costs are $2,494,981.
OBJECTIVES: 1) Maintain county fleet through contract services with ARA; 2) Monitor
ARA compliance to maintenance contract.
ACTUAL ESTIMATED PROJECTED
WORKLOAD MEASURES LAST FY CURRENT FY NEXT FY
Number of vehicles maintained 351 385 401
FINANCE/ADMINISTRATIVE RECOMMENDATION:
Recommend same funding level and continuation of ARA contract. New ARA contract will
reflect an additional "parts chaser", 4% COLA increase, plus fleet size adjustment.
Fuel is at a stable level of use and cost. Comparison of contract costs are shown
on the following page:
(CONTINUED ON NEXT PAGE)
-217-
BUDGET UNIT SUMMARY
(CONTINUED)
AGENCY/DEPARTMENT NAME: IS - MOTOR POOL
BUDGET UNIT TITLE AND NUMBER: Motor Pool Administration -- 61-9020
FINANCE/ADMINISTRATIVE RECOMMENDATION:
1985 1986 1987
Fleet size 351
385 401
Parts $ 301,000
Payroll $ 372,904 $ 500,000
293,388 334,180 362,750
Overhead 85,000
Fee 75,000 54,036 55,100
84028 102 000
TOTAL $ 754,388 $ 845 148
---�.� $1,019,850
-218-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: Ls - MOTOR POOL
BUDGET UNIT TITLE AND NUMBER: Motor Pool Equipment -- 61-1945
DEPARTMENT DESCRIPTION: Use of funded depreciation to acquire vehicles for county use.
ACTUAL BUDGETED REQUESTED RECOMMENDED
RESOURCES LAST FY CURRENT FY NEXT FY NEXT FY
Personnel
Services/Supplies
Capital/Credits $1,137 ,054 $1,025,257
Gross County Cost 1,137,054 1,025,257
Revenue
0- -0-
Net County Cost tl 137 054 St ,m5.257
Budget Positions
SUMMARY OF CHANGES: Equipment requests total $1,137,054 with only $1,025,257 available
and recommended, required a reduction of $111,797 in items in road and bridge. See
listing.
(N3JECTP/ES:
n/a - capital equipment
ACTUAL ESTIMATED PROJECTED
WORKLOAD MEASURES LAST FY CURRENT FY NEXT FY
n/a
FINANCE/ADMINISTRATIVE RECOMMENDATION: Recommend approval of purchases of $1,025,257
listed on the following page.
Policy of recommended equipment replacement guide on the following pages should be
continued.
-219-
IGA EQUIPMENT
Request Recommended
Shop Equipment
Shop Equipment $ 10,000 $ 10,000
Buildings and Grounds
Compact pickup (4) 38,000 38,000
Ambulance
Ambulance (1) 33,500 33,500
Sheriff
Patrol Vehicles (6) 80,000 80,000
Passenger (2) 19,600 19,600
Mini-van (1) 15,000 15,000
District Attorney:
Passenger (3) 29,400 29,400
Road and Bridge
See List 911,554 799,757
GRAND TOTAL $ 1,137,054 $ 1,025,257
-220-
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—222—
WELD COUNTY EQUIPMENT REPLACEMENT GUIDE
ITEM TYPE HOURS OR MILES AGE (Y RS)
1. GRADERS
14,000 10
2. BULL DOZERS
14,000 10 - 15
3. FRONT LOADERS
14,000 10 - 15
4. DRAGLINES
14,000 10 - 20
5. BACKHOES
14,000 10 - 15
6. TRACTOR BACKHOES
14,000 10 - 20
7. ROCK CRUSHER
14,000 10 - 20
8. TRACTOR SCRAPERS
14,000 10 - 20
9. SEDANS
75,000 5
10. PATROL SEDANS
75,000 1
11. PICKUPS
100,000 5
12. SINGLE AXLE DUMPS (GAS)
150,000 5 - 10
13. SINGLE AXLE DUMPS (DIESEL) 250,000
10
14. TANDEM AXLE TRUCKS
250,000 10
15. TRAILERS (LARGE)
500,000 10 - 20
All ether equipment to be considered on an individual basis.
-223-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME:Is - PRINTING AND SUPPLIES
BUDGET UNIT TITLE AND NUMBER: Printing and Supplies -- 64-1155
DEPARTMENT DESCRIPTION: Provides printing and supply support services to the County.
ACTUAL BUDGETED REQUESTED RECOMMENDED
RESOURCES LAST FY CURRENT FY NEXT FY NEXT FY
Personnel $ 46,486 $ 50,750 $ 50,750 $ 50,750
Services/Supplies 71,137 100,783 - 82,250 82,250
Capital/Credits 5,000 4,000 4,000
Gross County Cost 117,623 156,533 137,000 137,000
Revenue 119,905 156,533 137,000 137,000
Net County Cost $ (2.282) $ -0- $ -0- $ -0-
Budget Positions 3 3 3 3
SUMMARY OF CHANGES: Salaries remain stable at $50,750. Supplies are down $1,537,
repairs are up $2,542, depreciation and rental costs are up $3,356, and cost of goods
sold for supplies are down $9,400 for a total reduction of $19,533.
OBJECTIVES: 1) Reduce inventory through inventory management; 2) Provide printing order
turnaround within 7 days.
ACTUAL - ESTIMATED PROJECTED
WORKLOAD MEASURES LAST FY CURRENT FY NEXT FY
Supply sales 38,392 50,000 46,000
Printing orders 81,513 85,000 85,000
•
FINANCE/ADMINISTRATIVE RECOMMENDATION: Self-supporting fund providing printing and
supply services. Services are still cost competitive compared to private rates.
-224-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: IS - COMPUTER SERVICES
BUDGET UNIT TITLE AND NUMBER: Computer Services -- 65-1191
DEPARTMENT DESCRIPTION: The Computer Services Center provides data processing support services to Weld
County and a few outside agencies.
RESOURCES ACTUAL BUDGETED REQUESTED
LAST FY CURRENT FY NEXT FY RECOMMENDED
Personnel $1,125,983 NEXT FY
$1,199,175 $1,171,884 $1,171,884
Services/Su lies 810,103 435,560
Ca ital/Credits444,943 444,943
984 350,000 217,908
Gross Count Cost 1,937,070 217,908
1,984,735 1,834,735
Revenue 1,834,735735 1 996 283 1 984 73 1 834 735
Net Count Cost 59 213 1 834 70-
$ $
Bud et Positions 36
0 0 $ 0_
35 35 35
SUMMARY OF CHANGES: Salaries are scheduled to increase $31,886 per recommended adjust-
ments. Supplies are down $11,615. Major changes are the increase in capital computer
equipment and a more accurate picture of operational costs after the migration and con-
version last year to the new computer and the MVS operating system ($49,317) . Machine
usage has continued to grow at about 20%/year. It will be necessary to reduce machine
rates.
OBJECTIVES: To provide timely, reliable, and effective service to other county depart-
ments in their pursuit of their functions. This includes data processing, as well as
office automation services.
WORKLOAD MEASURES ACTUAL ESTIMATED PROJECTED
Jobs Run LAST FY CURRENT FY NEXT FY
System Programs Maintained 13,914 19,540
Application Programs Maintained 420 500 ,550
Application Job Streams 4 857 4,790
DP User Entities 980 4,900
OA User Entities 29 1,050
User S stems 23 27
59 63 67
FINANCE/ADMINISTRATIVE RECOMMENDATION: Recommended budget is funded by user departments.
The funding level is the same as 1986 plus salary adjustments of $31,886. Capital con—
tribution of $100,000 is recommended versus the $350,000 in 1986. Depreciation has never
been fully funded and this contribution annually would move in that direction, which is
prudent planning for the future. User requests will be evaluated in the normal budget
hearing process.
-225-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: Is - INSURANCE
BUDGET UNIT TITLE AND NUMBER: Insurance Fund -- 66-9020
DEPARTMENT DESCRIPTION: Central fund to provide countywide insurance coverage. Administered by Finance
and Administration unit in the General Fund.
ACTUAL BUDGETED REQUESTED RECOMMENDED
RESOURCES LAST FY CURRENT FY NEXT FY NEXT FY
Personnel
Services/Supplies $487,030 $652,575 $751,484 $751,484
Capital/Credits
Gross County Cost 487,030 652,575 751,484 751,484
Revenue/ Fund Bal. 177,061 141,480 240,389 240,389
Net County Cost S309.969 $511.095 $511,095 $511,095
Budget Positions -- -- -- --
SUMMARY OF CHANGES:
With Weld County joining CAPP July 1, 1986, the insurance program can comfortably be
funded at the 1986 funding level. Cost breakouts are as follows:
(CONTINUED ON NEXT PAGE)
OBJECTIVES: Provide countywide insurance coverage in most cost effective manner possible.
ACTUAL ESTIMATED PROJECTED
WORKLOAD MEASURES LAST FY CURRENT FY NEXT FY
Property claims 63 60 60
Liability claims 82 80 80
Worker's comp claims 178 180 180
FINANCE/ADMINISTRATIVE RECOMMENDATION: Recommend approval of continuation of self-
insurance program as member of CAPP. In accordance with Section 8-44-110, CRS, it is
recommended that a mill levy be used to fund the self-insurance program for local County
activities and only a chargeback mechanism be used for programs funded by State and
Federal funding sources. With the changes in the insurance market, Weld County, through
CAPP, has reduced limits of coverage and placed reliance on sovereign immunity to stay
within this budgeted amount. The legislative changes in 1986 strengthen the County posi-
tion of the use of sovereign immunity limits in Colorado cases.
-226-
BUDGET UNIT SUMMARY
(CONTINUED)
4GENCY/DEPARTMENT NAME: IS - INSURANCE
BUDGET UNIT TITLE AND NUMBER: Insurance Fund -- 66-9020
SUMMARY OF CHANGES:
CAPP Contribution $380,384
Unemployment 50,000
Workers' Comp Premiums 27,000
Workers' Comp Bond 4,500
Boiler Insurance 3,000
Professional Fees 18,500
Workers' Comp Losses 65,000
Misc. Supplies/Services 3,100
TOTAL $551,484
Loss Fund for past claims is funded at $200,000 from prior year reserves.
-227-
SELF-INSURANCE FUND
POLICY LIMITS, COVERAGES, RETENTIONS
CAPP:
PROPERTY:
(Includes EDP, Inland Marine, $ 50,000,000 Each Occurrence
"All Risk" Basis with Sub-
Auto Physical Damage)
limits of $1,000,000 Each
Occurrence/Aggregate
Applying Separately to
Flood and Earthquake
*GENERAL LIABILITY:
Bodily Injury/Property Damage:g $ 150,000 Each Person
$ 400,000 Each Claim
*AUTOMOBILE LIABILITY:
Bodily Injury/Property Damage: $ 150,000' Each Person
$ 400,000 Each Claim
*ERRORS & OMISSIONS:
$ 150,000 Each Person
$ 400,000 Each Claim/Aggregate
CRIME COVERAGES:
Monies & Securities (Inside) :
Monies & Securities (Outside $ 150,000 Each Loss
Employee Fidelity: ) ' $ 150,000 Each Loss
$ 150,000 Each Loss
EXCESS LIABILITY (FEDERAL AND
OUT OF STATE ONLY)
$ 850,000 Each Person excess
$150$ 600,000 Each,000 Each Person
Claim im excess
Specific: $400,000 Each Claim
Property
3rd Party Liability $ 150,000 Each Loss
Crime $ 150,000 Each Claim
$ 150,000 Each Loss
Combined Retention
Aggregate (Loss Fund) $ 150,000 Es
$ 4,200,000 Annnnu uallylly
WEL�UN-,;
WORKERS' COMPENSATION
$ 200,000 Loss Fund
$ 100,000 Self-Insurance Retention
$ 10,200,000 Aggregate
BOILER
$ 10,000,000 Each Occurrence excess
CLINIC $1,000 deductible
MALPRACTICE
$ 500,000 Each Claim/Aggregate
excess $1,000 deductible
STATE IMMUNITY LIMITS
-228-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: lNPONMATICN SERZRCES AGENCY
BUDGET UNIT TITLE AND NUMBER: PBX Phone services -- 67-1192
DEPARTMENT DESCRIPTION
: Provides phone services to Weld County and a few outside agencies.
RESOURCES BUDGETED
CURRENT FY REQUESTED RECOMMENDED
PersonnelIIIIIIMIIIIIII NEXT FY
$104,647 NEXT FY
$ 78450 $ 78450
MMINNIMIN
!fita ; t
205,959
Gross Count Cost ��
MINIMMINIMMaill365,097
Net Count CostIIIIMIIIIIIIMMIMIIMIIIMMIN 365,097 IMIEMMENNIMINIMMIE
0
Bud.et Positions _
allinallitlia .
SUMMARY OF CHANGES: Personnel costs are reduced by
the two Xoperators which
been transferred to Dispatch as CBO's.
bounty departments Long distance and local costs now includehall
all three PBX's ownad ndblocations. Maintenance costs reflect a full by the county. year maintenance for
OBJECTIVES: Perform the operation and maintenance for all count
requests research of phone systems for replacement, Y phone tv s, and service This
improved productivity, and .
WORKLOAD MEASURES
MERU FY
Incoming phone callsESTIMATED PROJECTED
Outgoing phone calls (Centennial) 43,680/month 46,743 CURRENT n NEXT mo
All phone calls (Centennial) 46,743 month
(Health Bldg.) n/a 44,276/month 4' '7 Tout
A11 phone calls (Walton Bldg.) n/a 44,276/month
System Repairs n/a 18,054/month
(Equipment 28,796/month 18,054/month
System Changes Maint.) 19.63/month28,796/month
g (Service Requests) 31.60/month 4
2.20/month 8.40/month 31.60/month
FINANCE/ADMINISTRATIVE RECOMMENDATION: Budget 8.40/month
ser-
vice costs in Weld County. reflects total consolidation of
Studies c are We Funding is at current level & reflects no capital upgrades.prae
being made to examine the costs & benefits of
switch in the Centennial Complex. This issue will
is available. addressed sdding 986-ems for the main
Budget reflects restructuring of organizaion & movement of CB information
st
Com-
munications budget, previously approved by the Board. Recommend approval.
to pproval.
-229-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: - HE IN INSURANCE
BUDGET UNIT TITLE AND NUMBER: Health Insurance Fund -- 83-9020
DEPARTMENT DESCRIPTION: Provides for the costs associated with Weld County's self-insured health
program.
RESOURCES ACTUAL BUDGETED REQUESTED RECOMMENDED
LAST FY CURRENT FY NEXT FY
Personnel NEXT FY
Services/Supplies $ 709,798 $ 988,926 $ 929,220
$ 929,220
Capital/Credits
Gross County Cost 709,798 988,926 929,220
929,220
Revenue /Reserve 1,017,752 988,926 929,220
Net County Cost 929,220
$ (307,954) $ -0- $ -0- $ -0-
-
Budget Positions -- -_
SUMMARY OF CHANGES: Budget reflects the changes listed on the following pages.
OBJECTIVES: 1) Provide employee health/dental/vision insurance in most cost effective
way possible; 2) Provide wellness program to all employees.
'WORKLOAD MEASURES ACTUAL ESTIMATED PROJECTED
LAST FY CURRENT FY NEXT FY
Single coverage 667
Family coverage 670 670
Paid losses 188 200 200
608,589 728,000 829,673
FINANCE/ADMINISTRATIVE RECOMMENDATION: Recommend approval of the continuation of the
self-insurance health program started January 1, 1983 with rate decrease for 1987. No
program changes are recommended in the summary of benefits provided on the following
pages, with the exception of adding a vision/dental assistance program for all employees
and expansion of wellness program for all employees.
The program thus far has been successful in achieving the objects of changing utilization
patterns and cost containment through sharing of costs between employer & employee in the
areas of premiums, deductibles, & co-insurance. 1986 ending reserves should be over
$1,000,00 allowing a premium decrease & the addition of a vision/dental assistance program
for all employees, together with the wellness program.
(CONTINUED ON NEXT PAGE) -230-
BUDGET UNIT SUMMARY
AGENCY/DEPARTMENT NAME: IS - HEALTH INSURANCE
BUDGET UNIT TITLE AND NUMBER: Health Insurance Fund -- 83-9020
SUMMARY OF CHANGES:
1983 1984 1985 1986 1987
Administration $ 38,363 $ 39,140 $ 37,278 $ 48,600 $ 48,600
Operating Services and Supplies -0- 1,000 1,000 3,000 4,000
Aggregate Excess Policy 19,336 18,089 42,536 40,947 40,947
Individual Excess Policy 19,850 26,013 7,500 6,000 6,000
Loss Fund 990,614 903,796 793,816 810,379 759,673
Dental/Vision Program -0- -0- 92,006 80,000 70,000
TOTAL $1,068,163 $988,038 $974, 136 $988,926 $929,220
FINANCE/ADMINISTRATIVE RECOMMENDATION:
Weld County may have to offer PEAK HMO in 1987, which could attract up to 15% of the
enrollees. Fiscal impact is uncertain. It is recommended that the county contribution
of $35.00 toward health be continued for the county and HMO if it is offered with the
employee paying the difference.
The 1987 program is calculated with current participation as follows:
Single Coverage: 670 Dependent Coverage: 200
HEALTH: Annual
Administration Fee = $ 48,600
Individual Stop-Loss = 39,003
Aggregate Stop-Loss = 6,000
Administrative Operating = 4,000
Conversion Costs = 1,944
Fixed Costs: $ 99,547
LOSS FUND:
Medical = 759,673
Dental = 40,000
Vision = 30,000
GRAND TOTAL: $929,220
REVENUE:
Single Vision/Dental/Wellness 750 X $21/month = $ 189,000
Single Health 670 X $51/month = 410,040
Dependent Health 200 X $68/month = 163,200
Dependent Vision/Dental 200 X $16/month = 38,200
TOTAL REVENUE: $ 800,440
Reserve Reduction/Interest 128,780
GRAND TOTAL $ 929,220
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INSURANCE
HEALTH/DENTAL/VISION INSURANCE:
1985 1986 1987 Self-Insured
SINGLE $ 90.05 $ 75.00
FAMILY $107.60 $ 95.00 $ 72.00 Premium decrease
$ 84.00 Premium decrease
PROGRAM:
. SINGLE $100 DEDUCTION - 20%/80% TO $2,000 THEN 100%
• FAMILY $200 DEDUCTION - 20%/80% TO $4,000 THEN 100%
CONCEPT:
. SHARING COST (PREMIUMS/DEDUCTIBLE/CO-INSURANCE)
CHANGE UTILIZATION PATTERNS
. COST CONTAINMENT
DENTAL:
PROGRAM:
. COVERAGE FOLLOWS HEALTH INSURANCE PROGRAM COVERAGE FOR BOTH SINGLE AND
FAMILY PLANS
. 100% PREVENTIVE CARE
. 50%/50% CARE OTHER THAN PREVENTIVE
. EXCLUDES ORTHODONIC CARE
. MAXIMUM AMOUNT PAID FOR SINGLE OR FAMILY $500/YEAR
VISION:
PROGRAM:
. COVERAGE FOLLOWS HEALTH INSURANCE PROGRAM COVERAGE FOR BOTH SINGLE AND
FAMILY PLANS
• MAXIMUM AMOUNT PAID FOR SINGLE $150/YEAR OR FAMILY $300/YEAR
. NO DEDUCTIBLE
. 50% OF COVERED EXPENSES INCURRED
. EXAMINATION, LENSES, AND FRAMES LIMITED TO ONE EACH YEAR
LIFE:
7,000 @ 39c/$1,000 = $2.73/MONTH
12,000 @ 39t/$1,000 = $4.68/MONTH
WELLNESS:
Expanded wellness program would be offered to all County employees.
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COST ANALYSIS
CURRENT:
County
Single: Share Individual Total
Health $ 44.00 $ 16.00 $ 60.00
Dental/Vision 15.00 0.00 15.00
TOTAL $ 59.00 $ 16.00 $ 75.00
Family:
Health $ 0.00 $ 76.00 $ 76.00
Vision/Dental 0.00 19.00 19.00
TOTAL $ 0.00 $ 95.00 $ 95.00
GROSS TOTAL $ 59.00 $ 111.00 $ 170.00
PROPOSED:
County
Single: Share Individual Total
Health $ 35.00 $ 16.00 $ 51.00
Vision/Dental/Wellness/POP 21 .00 0.00 21.00
TOTAL $ 56.00 $ 16.00 $ 72.00
Family:
Health $ 0.00 $ 68.00 $ 68.00
Vision/Dental 0.00 16.00 16.00
TOTAL $ 0.00 $ 84.00 $ 84.00
GROSS TOTAL $ 56.00 $ 100.00 $ 156.00
SUMMARY OF TOTAL COSTS: 1987 1987
OVER 5 YEARS UNDER 5 YEARS
SINGLE EMPLOYEE:
Health $ 51.00 $ 51.00
Dental/Vision/Wellness 21 .00 21.00
Life 4.68 2.73
SUB-TOTAL $ 76.68 $ 74.73
County Contribution (60.68) (58.73)
Employee Share 16.00 16.00
Dependent Insurance 84.00 84.00
$ 100.00 $ 100.00
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SUPPLEMENTAL
DATA
SUPPLEMENTAL DATA
Demographic Statistics
1. Population: 1960 - 72,344
1970 - 89,297
1975 - 111,901
1980 - 123,438
1983 - 132.513
1984 - 131,746
1985 - 133,922
2. Estimated Median Age: 26.7 (1980 Census)
28.5 (1983)
26.7 (1984)
3. Total Personal Income
For Years Available: 1970 - $ 279,766,000
1971 - $ 327,463,000
1972 - $ 380,534,000
1973 - $ 481,301,000
1974 - $ 539,833,000
1975 - $ 597,099,000
1980 - $1,059,311,000
1982 - $1,317,000,000
1984 - $1,317,329,000
4. Per Capita Income
For Years Available: 1970 - $ 3,111
1971 - $ 3,527
1972 - $ 3,891
1973 - $ 4,666
1974 - $ 5,054
1975 - $ 5,543
1977 - $ 5,061
1980 - $ 6,505
1982 - $10,411
5. Median Family Income $15,805 (1980 Census)
$22,921 (1983)
$21,286 (1984)
6. Population Per Household 1970 - 3.09
1980 - 2.79
1983 - 2.75
1984 - 2.79
7. Housing Units 1970 - 28,896
1980 - 46,475
1983 - 46,059
1984 - 49,538
Source: Greeley Area Chamber of Commerce Survey and U.S. Census data.
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Miscellaneous Statistics
nau to
1. Date of Incorporation:
1861
2. Form of Government:
Home Rule Charter
3. Date Present Charter Adopted
January 1, 1976
4. Area - Square Miles:
4,004 square miles
5. County Seat:
City of Greeley
6. Employees as of December 31, 1985
Elected Officials - 10
Division Heads - 5
Department Heads - 8
Other Full Time Employees - 791
Part Time Employees - 300
7. Miles of Roads:
Paved - 515.3
Unpaved - 2,818.8
8. Building Permits:
No. of
Year Permits Valuation
tion
1976 1,624 $ 47,546,973
1977 1,177 $ 30,102,553
1978 1,546 $ 58,749,363
1979 1,592 $ 34,782,283
1980 1,348 $ 54,775,497
1981 1,241 $ 32,851,694
1982 ].,865 $ 35,207,497
1983 2,699 $ 51,480,002
1984 2,450 $ 44,854,598
1985 2,519 $ 37,423,180
9. Motor Vehicle Registration:
1976 - 108,529
1977 - 122,133
1978 - 143,888
1979 - 133,437
1980 - 125,970
1981 - 129,159
1982 - 130,952
1983 - 132,458
1984 - 139,521
1985 - 136,444
10. Special Districts
within County:
29 - Cities and Towns
18 - Schools
23 - Fire
12 - Water
2 - Colleges
15 - Sanitation
11. Cities and Towns:
Ault Gilcrest Lochbuie
Eaton Greeley Mead
Erie Grover Milliken
Evans Hudson New Rayner
Dacono Johnstown Nunn
Firestone Keenesburg Pierce
Frederick Keota Platteville
Ft. Lupton Kersey Rosedale
Garden City LaSalle Severance
Brighton JT Windsor
12. Recreation:
Golf Courses - 5
City and Regional Parks
Island Grove Recreational Complex
Greeley Recreation Center
—235—
Miscellaneous Statistics - Continued
13. Libraries:
Greeley Library 123,440 Volumes
University of No. Colo. 722,671 Volumes
Weld County Library 166,030 Volumes
14. Elections:
Number of Number Percent of
Registered of Votes Registered
Voters Cast Voters VotinR
1974 General Election 45,175
1976 General Election 49 785 41,184 66.4
1978 General Election 47,832 29,818 82 3
1980 General Election , 29,818 62.3
1982 General Election 51,476 44,134 86.3
1984 General Election 51,476 36,3014.6
8
56,311 47,632 84 6
15. Media
Newspapers: The Greeley Tribune
The Booster
Town & Country News
Aims College World
The Mirror (UNC)
North Weld Herald
Farmer & Miner
Keene Valley Sun
Johnstown Breeze
Ft. Lupton Press
Platteville Herald
Windsor Beacon
Brighton Blade and Market Place
Erie Echo
Ft. Morgan Times
LaSalle Leader
Longmont Times Call
Platte Valley Voice
Evans Star Press
The Centennial News
Radio Stations: KFKA/KGBS
KY0U/KGRF,
KUAD AM & FM
KUNC FM
Television: Receives commercial and public
television originating from both
Denver and Cheyenne stations;
also cable television.
16. Sales Tax as of December 31, 1985: State - 3%
Source: Greeley Area Chamber of Commerce/County offices.
—236—
GLOSSARY
GLOSSARY
ACCOUNTING PROCEDURES. All processes which discover, record, classify, and
summarize financial information to produce financial reports and to
provide internal control.
ACCRUAL BASIS. The basis of accounting under which transactions are
recognized when they occur, regardless of the timing of related cash
flows.
ACCRUED EXPENSES. Expenses incurred but not due until a later date.
ACTIVITY. A specific and distinguishable line of work performed by one or
more organizational components of a government for the purpose of
accomplishing a function for which the government is responsible. For
example, "food inspection" is an activity performed in the discharge of
the "health" function.
ACTIVITY CLASSIFICATION. Expenditure classification according to the
specific lines of work performed by organization units. For example,
"sewage treatment and disposal", "garbage collection", "garbage
disposal", and "street cleaning" are activities performed in carrying
out the function of "sanitation". The segregation of the expenditures
made for each of these activities constitutes an activity
classification.
ALLOCATE. To divide a lump-sum appropriation into parts which are
designated for expenditure by specific organization units and/or for
specific purposes, activities, or objects.
ALLOCATION. A part of a lump-sum appropriation which is designated for
expenditure by specific organization units and/or for special purposes,
activities, or objects.
ALLOT. To divide an appropriation into amounts which may be encumbered or
expended during an allotment period.
ALLOTMENT. A part of an appropriation which may be encumbered or expended
during an allotment period.
ALLOTMENT PERIOD. A period of time less than one fiscal year in length
during which an allotment is effective. Bimonthly and quarterly
allotment periods are most common.
ANNUAL BUDGET. A budget applicable to a single fiscal year.
APPROPRIATION. A legal authorization granted by a legislative body to make
expenditures and to incur obligations for specific purposes. An
appropriation is usually limited in amount and as to the time when it
may be expended.
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APPROPRIATION BILT , ORDINANCE, RESOLUTION, or ORDER. A bill,
resolution, or order by means of which appropriations are
effect. It is the method by ordinance,
effecting budget which the expenditure side given legal
nu
is enacted into law by the legislative body.the annual
governmental jurisdictions, appropriations cannot be enacted
by resolution but only by In many
a bill, ordinance, or order, into law
APPROPRIATION EXPENDITURE. An expenditure chargeable to an
Since virtually all expenditures of governments
appropriations, appropriation.
used, the term expenditures by are chargeable to
itself is widely and properly
ASSESSED VALUATION. A valuation set upon real estate or other
property by a
government as a basis for levying taxes.
AUTHORITY. A government or public agency created to
function or a restricted group of related activities.
units are financed from service charges, perform a single
instances itsa g , fees, and tolls, but in such
they also have taxing powers. An authority but in
independent of othersome
independent for its creation, or its
may be completely
Partially dependent upon other
powers, g, cr the exercise of certain
BUDGET. A plan of financial operation embodying an estimate of
expenditures for a given period and the proposed means
them. Used without any proposed
financial plan for a modifier, the term of financing
fin senses in single fiscal year. The to usually indicates a
practice. Sometimes it designates "budget" c used in
presented to the appropriating body for adoption and the financial plan
finally approved by that body. It is usually necessary smarymes the whether the budget plan
under consideration is preliminary nt specify
whether it has been approved by the a
and tentative or
BUDGET DOCUMENT. appropriating body.
The instrument used by the budget-making authority to
present a comprehensive financial program to the appropriating body.
The budget document usually consists of three parts.
otins a message from the budget-making authority, The first part
summary of the proposed expenditures and the means of financing with e a
The second consists of schedules supporting the summary.
schedules show in them.
detail the information as to past rs, actual
al
revenues, expenditures, and other data used in making
The third years'
part is composed of drafts of the the estimates.
borrowing measures necessary to put the budget into effect.
appropriation, revenue, and
BUDGET MESSAGE. A general discussion of the proposed budget as presented in
writing by the budget—making authority to the legislative body.
budget message should contain an explanation of the
items, an outline of the The
its its governments experience during the pas budget
d
financial status at the time a the past recommendations regarding of the period
the financial message, and
BUDGETARY ACCOUNTS. policy for the coming period.
Accounts used to enter the formally adopted annual
operating budget into the general ledger as part of the management
control technique of formal budgetary integration.
gration.
-238-
BUDGETARY COMPARISONS. Governmental GAAP financial reports must include
comparisons of approved budgeted amounts with actual results of
operations. Such reports should be subjected to an independent audit,
so that all parties involved in the annual operating budget/legal
appropriation process are provided with assurances that government
monies are spent in accordance with the mutually agreed-upon budgetary
plan.
BUDGETARY CONTROL. The control or management of a government or enterprise
in accordance with an approved budget for the purpose of keeping
expenditures within the limitations of available appropriations and
available revenues.
BUDGETARY EXPENDITURES. Decreases in net current assets. In contrast to
conventional expenditures, budgetary expenditures are limited in amount
to exclude amounts represented by noncurrent liabilities. Due to their
spending measurement focus, governmental fund types are concerned with
the measurement of budgetary expenditures.
BUDGETED FUNDS. Funds that are planned for certain uses but have not been
formally or legally appropriated by the legislative body. The budget
document that is submitted for Board approval is composed of budgeted
funds.
CAPITAL BUDGET. A plan of proposed capital outlays and the means of
financing them.
CAPITAL OUTLAY. Expenditures for equipment, vehicles, or machinery that
results in the acquisition or addition to fixed assets.
CAPITAL PROGRAM. A plan for capital expenditures to be incurred each year
over a fixed period of years to meet capital needs arising from the
long-term work program or otherwise. It sets forth each project or
other contemplated expenditure in which the government is to have a
part and specifies the full resources estimated to be available to
finance the projected expenditures.
CAPITAL PROJECTS FUND. A fund created to account for financial resources to
be used for the acquisition or construction of major capital facilities
(other than those financed by proprietary funds, Special Assessmept
Funds, and Trust Funds) .
CAPITAL RESOURCES. Resources of a fixed or permanent character, such as
land and buildings, which cannot ordinarily be used to meet current
expenditures.
CONTINGENCY ACCOUNT. A budgetary reserve set aside for emergencies or
unforeseen expenditures not otherwise budgeted for.
CONTINUING APPROPRIATION. An appropriation which, once established, is
automatically renewed without further legislative action, period after
period, until altered or revoked. The term should not be confused with
INDETERMINATE APPROPRIATION.
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DEFICIT. (1) The excess of the liabilities of a fund over its assets. (2)
The excess of expenditures over revenues during an accounting period;
or, in the case of proprietary funds, the excess of expense over income
during an accounting period.
DEPRECIATION. (1) Expiration in the service life of fixed assets, other
than wasting assets attributable to wear and tear, deterioration,
action of the physical elements, inadequacy, and obsolescence. (2)
The portion of the cost of a fixed asset other than a wasting asset
which is charged as an expense during a particular period. In
accounting for depreciation, the cost of a fixed asset, less any
salvage value, is prorated over the estimated service life of such an
asset, and each period is charged with a portion of such cost. Through
this process, the entire cost of the asset is ultimately charged off as
an expense.
ENCUMBRANCES. Obligations in the form of purchase orders, contracts or
salary commitments which are chargeable to an appropriation and for
which a part of the appropriation is reserved. They cease to be
encumbrances when paid or when an actual liability is set up.
ESTIMATED REVENUE. The amount of projected revenue to be collected during
the fiscal year. The amount of revenue appropriated is the amount
approved by the Board.
EXPENDITURES. Decreases in net financial resources. Expenditures include
current operating expenses which require the current or future use of
net current assets, debt service, and capital outlays. The unmodified
use of the term expenditures in this text is intended to mean budgetary
expenditures.
FISCAL PERIOD. Any period at the end of which a government determines its
financial position and the results of its operations.
FISCAL YEAR. A 12-month period to which the annual operating budget applies
and at the end of which a government determines its financial position
and the results of its operations.
FIXED ASSETS. Assets of a long-term character which are intended to
continue to be held or used, such as land, buildings, improvements
other than buildings, machinery and equipment.
FUNCTION. A group of related activities aimed at accomplishing a major
service or regulatory program for which a government is responsible.
For example, public health is a function.
FUNCTIONAL CLASSIFICATION. Expenditure classification according to the
principal purposes for which expenditures are made. Examples are
public safety, public health, public welfare, etc.
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FUND. A fiscal a-:d accounting entity with a self-balancing set of accounts
recording cash and other financial resources, together with all related
liabilities and residual equities or balances, and changes therein,
which are segregated for the purpose of carrying on specific activities
or attaining certain objectives in accordance with special regulations,
restrictions, or limitations.
FUND BALANCE. Fund balance is the excess of assets over liabilities and is
therefore also known as surplus funds.
GENERAL FUND. The fund used to account for all financial resources except
those required to be accounted for in another fund.
GRANT. A contribution by a government or other organization to support a
particular function. Grants may be classified as either categorical
or block depending upon the amount of discretion allowed the grantee.
INDETERMINATE APPROPRIATION. An appropriation which is not limited either
to any definite period of time or to any definite amount. A
distinction must be made between an indeterminate appropriation and a
continuing appropriation. In the first place, whereas a continuing
appropriation is indefinite only as to time, an indeterminate
appropriation is indefinite as to both time and amount. In the second
place, even indeterminate appropriations which are indefinite only as
to time are to be distinguished from continuing appropriations in that
such indeterminate appropriations may eventually lapse. For example,
an appropriation to construct a building may be made to continue in
effect until the building is constructed. Once the building is
completed, however, the unexpended balance of the appropriation lapses.
A continuing appropriation, on the other hand, may continue forever; it
can only be abolished by specific action of the legislative body.
INDIRECT COSTS. Costs associated with, but not directly attributable to,
the providing of a product or service. These costs are usually
incurred by other departments in the support of operating departments.
INTERFUND TRANSFER. Amounts transferred from one fund to another.
INTERGOVERNMENTAL REVENUE. Revenue received from another government for a
specified purpose. In Weld County, these are funds from
municipalities, the State of Colorado, and the Federal Government.
INTERNAL SERVICE FUND. Funds used to account for the financing of goods or
services provided by one department to another department on a cost
reimbursement basis, for example, the Printing and Supply Fund and the
Computer Services Fund.
LINE-ITEM BUDGET. A budget that lists each expenditure category (salary,
materials, telephone service, travel, etc.) separately, along with the
dollar amount budgeted for each specified category.
-241-
MANDATE. Any responsibility, action or procedure that is imposed by one
sphere of government on another through constitutional, legislative,
administrative, executive, or judicial action as a direct order or
that is required as a condition of aid.
MILL. The property tax rate which is based on the valuation of property.
A tax rate of one mill produces one dollar of taxes on each $1,000 of
property valuation.
MODIFIED ACCRUAL BASIS. The accrual basis of accounting adapted to the
governmental fund type Spending Measurement Focus. Under it, revenues
are recognized when they become both "measurable" and "available to
finance expenditures of the current period". Expenditures are
recognized when the related fund liability is incurred except for: (1)
inventories of materials and supplies which may be considered
expenditures either when purchased or when used; (2) prepaid insurance
and similar items which need not be reported; (3) accumulated unpaid
vacation, sick pay, and other employee benefit amounts which need not
be recognized in the current period, but for which larger-than-normal
accumulations must be disclosed in the notes to the financial
statements; (4) interest on special assessment indebtedness which may
be recorded when due rather than accrued, if approximately offset by
interest earnings on special assessment levies; and (5) principal and
interest on long-term debt which are generally recognized when due.
All governmental funds and Expendable Trust Funds are accounted for
using the modified accrual basis of accounting.
OBJECT. As used in expenditure classification, this term applies to the
article purchased or the service obtained (as distinguished from the
results obtained from expenditures) . Examples are personal services,
contractual services, materials, and supplies.
OPERATING BUDGET. Plans of current expenditures and the proposed means of
financing them. The annual operating budget (or, in the case of some
state governments, the biennial operating budget) is the primary means
by which most of the financing acquisition, spending, and service
delivery activities of a government are controlled. The use of annual
operating budgets is usually required by law. Even where not required
by law, however, annual operating budgets are essential to sound
financial management and should be adopted by every government.
OPERATING EXPENSES. Proprietary fund expenses which are directly related to
the fund's primary service activities.
OPERATING GRANTS. Grants which are restricted by the grantor to operating
purposes or which may be used for either capital or operating purposes
at the discretion of the grantee.
OPERATING INCOME. The excess of proprietary fund operating revenues over
operating expenses.
OPERATING TRANSFER. Routine and/or recurring transfers of assets between
funds.
-242-
ORGANIZATIONAL UNIT. A responsibility center within a government.
ORGANIZATION UNIT CLASSIFICATION. Expenditure classification according to
responsibility centers within a government's organization structure.
Classification of expenditures by organization unit is essential to
fixing stewardship responsibility for individual government resources.
OVERHEAD. Those elements of cost necessary in the production of an article
or the performance of a service which are of such a nature that the
amount applicable to the product or service cannot be determined
accurately or readily. Usually they relate to those objects of
expenditure which do not become an integral part of the finished
product or service such as rent, heat, light, supplies, management,
supervision, etc.
PROGRAM. An organized set of related work activities which are directed
toward a common purpose or goal and represent a well defined
expenditure of County resources.
PROGRAM BUDGET. A budget wherein expenditures are based primarily on
programs of work and secondarily on character and object class. A
program budget is a transitional type of budget between the traditional
character and object class budget, on the one hand, and the performance
budget, on the other.
REIMBURSEMENTS. (1) Repayments of amounts remitted on behalf of another
party. (2) Interfund transactions which constitute reimbursements of
a fund for expenditures or expenses initially made from it which are
properly applicable to another fund -- e.g. , an expenditure properly
chargeable to a Special Revenue Fund was initially made from the
General Fund, which is subsequently reimbursed. They are recorded as
expenditures or expenses (as appropriate) in the reimbursing fund and
as reductions of the expenditure or expense in the fund that is
reimbursed.
RESERVE. (1) An account used to earmark a portion of fund balance to
indicate that it is not appropriate for expenditure; and (2) an account
used to earmark a portion of fund equity as legally segregated for a
specific future use.
RESIDUAL EQUITY TRANSFER. Non-recurring or non-routine transfers of assets
between funds.
REVENUES. (1) Increases in governmental fund type net current assets from
other than expenditure refunds and residual equity transfers. Under
NCGA Statement 1, general long-term debt proceeds and operating
transfers-in are classified as "other financing sources" rather than
revenues. (2) Increases in proprietary fund type net total assets
from other than expense refunds, capital contributions, and residual
equity transfers. Under NCGA Statement 1, operating transfers-in are
classified separately from revenues.
SOURCE OF REVENUE. Revenues are classified according to their source or
point of origin.
-243-
SUBACTIVITY. A specific line of work performed in carrying out a
governmental activity. For example, "cleaning luminaries" and
"replacing defective street lamps" would be subactivities under the
activity of "street light maintenance".
SUBFUNCTION. A grouping of related activities within a particular
governmental function. For example, "police" is a subfunction of the
function "public safety".
SURPLUS. The use of the term "surplus" in governmental accounting is
generally discouraged because it creates a potential for misleading
inference.
TAX RATE. The amount of tax stated in terms of a unit of the tax base; for
example, 25 mills per dollar of assessed valuation of taxable property.
TAX RATE LIMIT. The maximum rate at which a government may levy a tax. The
limit may apply to taxes raised for a particular purpose, or to taxes
imposed for all purposes, and may apply to a single government, to a
class of governments, or to all governments operating in a particular
area. Overall tax rate limits usually restrict levies for all purposes
and of all governments, state and local, having jurisdiction in a given
area.
TAX ROLL. The official list showing the amount of taxes levied against each
taxpayer or property. Frequently, the tax roll and the assessment roll
are combined, but even in these cases the two can be distinguished.
TAXES. Compulsory charges levied by a government for the purpose of
financing services performed for the common benefit. This term does
not include specific charges made against particular persons or
property for current or permanent benefits such as special assessments.
Neither does the term include charges for services rendered only to
those paying such charges as, for example, sewer service charges.
TRADITIONAL BUDGET. A term sometimes applied to the budget of a government
wherein expenditures are based entirely or primarily on objects of
expenditure.
WORKLOAD MEASURES. Specific quantitative and qualitative measures of work
performed as an objective of the department.
WORK PROGRAM. A plan of work proposed to be done during a particular period
by the administrative agency in carrying out its assigned activities.
WORK UNIT. A fixed quantity which will consistently measure work effort
expended in the performance of an activity or the production of a
commodity.
NOTE: Most of the above definitions were taken from Governmental
Accounting, Auditing, and Financial Reporting, MFOA, Chicago, 1980,Appendex B.53-77. pp.
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