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HomeMy WebLinkAbout20211858.tiffrir highplains • brery Disvicc brary District WELD COUNTY, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT Co KRun colt: o,iS o7/"ci /221 YEAR ENDED DECEMBER 31, 2020 cc:cq(asiac) FI(D4) 07/12 /2, 2021-1858 L 1OO 09 High Plains Library District 2650 W. 29th Street Greeley, Colorado 80631 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the year ended December 31, 2020 Kenneth Poncelow Chairman Mary Heberlee Vice Chairman Mary Roberts Secretary/Treasurer Jana Caldwell Trustee Teresa Curtis Trustee Gerri Holton Trustee Joyce Smock Trustee Executive Director Dr. Matthew Hortt Associate Director of Public Services Marjorie Elwood Associate Director of Public Services Rosa Granado Prepared by: Natalie Wertz, CPA, CFE Finance Manager TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 3 Principal District Officials 8 Organizational Chart 9 Certificate of Achievement 10 FINANCIAL SECTION Independent Auditors' Report 11 Management Discussion and Analysis 13 Basic Financial Statements: Governmental Funds Balance Sheet/Statement of Net Position 18 Statement of Governmental Funds Revenue, Expenditures and Changes In Fund Balances/Statement of Activities 19 Budgetary Comparison Statement — General Fund 21 Notes to Financial Statements 23 STATISTICAL SECTION (Unaudited) Net Position by Component 37 Changes in Net Position 38 Fund Balances of Governmental Funds 39 Changes in Fund Balances, Governmental Funds 40 General Governmental Expenditures by Function 41 General Governmental Revenues by Source 42 Property Tax Levies and Collections 43 Assessed and Estimated Actual Value of Taxable Property 44 Principal Taxpayers 45 Ratio of Outstanding Debt by Type 46 Legal Debt Margin Calculation 47 Direct and Overlapping Governmental Activities Debt 48 Demographic and Economic Statistics 49 Principal Employers 50 Library Materials Purchased and Circulated 51 Service Locations 52 Circulation Summary by Location 53 • • hi hplains g1Library District To the Members of the Board of Trustees and Patrons of the High Plains Library District: Administration 2650 W. 29"' Street Greeley CO 80631 Phone: (970) 506-8550 Fax: (970) 506-8551 June 9, 2021 State Law requires that the High Plains Library District (HPLD) publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the HPLD for the fiscal year ended December 31, 2020. This report consists of management's representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the HPLD has established a system of internal controls that are designed both to protect the District's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the District's framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District's financial statements have been audited by Anderson & Whitney, P.C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended December 31, 2020 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used, and evaluating the overall financial statement presentation. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The High Plains Library District's MD&A can be found immediately following the report of the independent auditors. Profile of the District The District is considered to be a "Library District" established through Colorado State Statute (C.R.S. 24- 90-110) and governed by the Colorado Library Law, Article 90 of Title 24, Colorado Revised Statutes, as amended (the "Act"). The District was established on September 11, 1985 by the Weld County Board of County Commissioners, the city councils of Evans, Fort Lupton, Greeley, the town boards of Ault, Eaton, Hudson, and the Governing Board of Fort Lupton School District Number RE -8. The District is fiscally, managerially, and operationally an independent political subdivision of the State of Colorado. There are seven branch libraries and four outreach vehicles that provide services to patrons throughout the High Plains Library District. Three branches are located in the City of Greeley, one each in Erie, Evans, Firestone, and Kersey. The towns of Ault, Eaton, Hudson, Johnstown, Platteville, and the city and school district of Fort Lupton, which are located within the District's boundaries, own and operate their own library facilities. The District provides centralized support services to these locations. The citizens of these municipalities pay ad valorem property taxes to the District as District residents. By contract with the municipalities two-thirds of those ad valorem property taxes are then given to these towns for library operations and capital expenditures. The District retains one-third for providing centralized support services. The District supports technology and provides limited library services at other locations in Greeley, Briggsdale, and Milliken. Affiliated Libraries consist of the Poudre Learning Center in Greeley, the Hazel E. Johnson Research Center, located within the City of Greeley Museum and the City of Evans museum. A book deposit is available at the Hill and Park Senior Center. Carbon l'allcc Regional Library • Centennial Park Branch Library • Eaton Public Library • Eric Community Library • Farr Regional Library Fort Lupton Public K School Library • Glenn .l. Joucs, DI.1). Memorial library • Hudson Public library • Lincoln Park Branch Library Northern Plains Public Library • ( )litrcacl • Planecille Public Library (-888-Std-RV.11)(';sa;tn >ctrtt.NIN1 lnrarc.tts The Weld Library Finance Corporation (WLFC) was formed in 2001 for the purpose of purchasing, leasing or otherwise acquiring certain real property and to construct or install certain improvements in the service area of the District. The WLFC did not have any financial activity in 2020. When the WLFC has activity, it is included as a blended component unit within the financial statements of the District. Administrative and support departments include Executive Director, Associate Directors, Collection Resources, Community Relations and Marketing, Facilities Services, Finance, Foundation, Human Resources, Information Technology and Innovation, and MOVE (Outreach) all located at the District's Administration and Support Services building. Management and control of the District is vested in a board of trustees consisting of seven members, all of whom are appointed by a committee representing the original founding bodies that established the District. Trustees serve staggered terms with one or two board members having terms expiring at the end of each year from 2021 through 2024. The trustees hold one regular meeting each month and special meetings when necessary. Board members are prohibited by law from receiving compensation for their services; however, they may be reimbursed for necessary travel, training or miscellaneous expenses. The annual budget serves as the foundation for the High Plains Library District's (HPLD) financial planning and control. HPLD is required to file a certified copy of the budget with the State of Colorado Division of Local Government by January 31 of each year. The HPLD begins the budgeting process in July each year and develops a proposed budget. The Executive Director presents this proposed budget to the Board of Trustees for review and approval on or before October 15. The deadline for certification of mill levies to the Weld County and Boulder County Commissioners is December 15 of each year. The Board of Trustees is required to hold public hearings on the proposed budget and to adopt a final budget on or before December 31, the close of the District's fiscal year. The budget is prepared by fund, account, location, and department. Budget -to -actual comparisons are provided in this report for the general fund, and when applicable the capital projects fund and the debt service fund. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the High Plains Library District operates. Local economy: In 2020, the outbreak of the COVID-19 virus severely impacted the economy. The state -imposed shutdowns and restrictions had a negative impact across numerous industries. A sharp, rapid decline in oil and gas prices slowed development and investment. The restaurant industry suffered dramatically. For several weeks, restaurants were forced to limit service to drive through, take out, or delivery. Entertainment venues were forced to cancel events. Travel and tourism declined as non- essential travel was restricted or prohibited. When restaurants and some entertainment venues were allowed to reopen for indoor dining and events, regulations severely restricted capacity. Negative economic results included a very large increase in unemployment for the first and second quarters of 2020. The unemployment rate in Colorado remained high throughout 2020 with a reported unemployment rate of 8.3 percent in Weld County for December 2020. Inflation in Colorado was reported to be 1.95 percent in 2020. The impact of oil and gas development and production in the county touches on many aspects of the High Plains Library District (HPLD) currently, and in planning for the future. Energy development presents both challenges and opportunities for HPLD. Prior to 2020, the County has seen several compressor stations, injection wells, new pipelines, and other oil and gas support and service industries seeking permits. Currently there are several hundred permits pending with the Colorado Oil & Gas Conservation Commission. Given the commitments of the large oil and gas companies in Weld County, the County seems primed to see considerable long-term investment and development in the oil and gas arena. Although the potential for the future of energy development in Weld County appears bright, it is not without risks. Oil and gas production in Colorado has risks associated with the potential of additional government regulations and voter initiatives trying to restrict or limit fracking and limit drilling in Colorado -4- communities. These regulatory risks, if implemented, could dramatically impact future oil and gas development in Colorado. The energy industry does continue to be an important economic driver of Weld County and Colorado. The Denver-Julesburg Basin covers most of the High Plains Library District geographic area. The volume of oil production and sales in Weld County decreased over 11% and natural gas production and sales in Weld County increased almost 9% in 2020. The average price per barrel of oil decreased over 32% in 2020. With that volume of production and sales and price level, High Plains Library District is currently expecting a 30% to 50% decrease in assessed valuation for fiscal year (collection year) 2022. The northern Colorado region's housing market continued to be active. Housing prices continued to rise because of limited available housing inventory. Low interest rates encouraged potential home buyers to enter the market. New home construction continues to be active particularly in the southern section of High Plains Library District. Limited affordable housing remains a concern. The Gallagher Amendment in the Colorado Constitution limited the portion of statewide property tax revenue that could come from residential property to 45%. The remaining 55% of statewide property tax revenue was to be levied on other property types — commercial, agricultural, oil and gas, etc. The assessment rate for non-residential property types is fixed at 29%. In order to maintain that 45% / 55% ratio, the residential assessment rate was adjusted every two years. Since residential property values statewide have increased faster than the other property types, the residential assessment rate had been decreasing. The Taxpayer Bill of Rights (TABOR) in the Colorado Constitution prohibits any tax increases without a vote of the citizens and increasing the residential assessment rate has been interpreted as a tax increase. A measure to repeal the Gallagher Amendment was on the ballot in November 2020 and passed. Starting with assessment year 2021 / collection year 2022, the residential assessment rate is fixed at 7.15% and the non-residential assessment rate is fixed at 29%. The state legislature may reduce the assessment rates, but the assessment rates may only be increased by taxpayer vote. Historically, the agricultural industry has played a significant role in the Weld County economy. Agricultural production continues to be an important local economic factor. Corn, wheat, and sugar beets remain some of the primary crops grown in the area. The local dairy market has benefitted from the construction and expansion of a cheese factory in Greeley. The economy continues to benefit from a large meat packing plant as a significant employer in the district. In the summer of 2017, a national food company began construction of a plant in the southwest area of the district. The plant began operations in July 2019. At opening, phase one of the plant cost $200 million and employs about 230 workers. Investment in phase two of the plant would be about $140 million and could employ about another 275 workers. As the High Plains Library District looks to 2021 and beyond, a number of challenges face the District to meet the ever changing and growing demands of its patrons to maintain the quality of service and product offerings that the patrons have grown to expect from their library district. The additional production of oil and gas during recent years has resulted in significant increases in the District's assessed value with the oil and gas production exceeding forty-nine percent of the District's total assessed valuation for every fiscal year since 2017. Oil and gas production comprised over 57% of the District's total assessed value for fiscal year 2019, over 63% for fiscal year 2020, and almost 58% for 2021. Because of the volatility of production levels and price fluctuations of the oil and gas market, the District must prudently manage the property tax revenue created by the energy development. To assist the Board of Trustees in managing volatility in property tax revenue will be the continued utilization of the Capital Improvement Program, five- year planning horizon, and the ten-year forecast model used during the annual budget preparation. Although the financial health of the HPLD is currently excellent, it is important to look to the future issues, possible problems and alternative solutions to these problems. Besides the traditional role of budgeting to responsibly manage available current year funding, there must be a continued emphasis on long-term planning, recognition of the cumulative effect of individual decisions, an awareness of changing realities, flexibility, patron input in setting priorities, and a focus of goals and objectives consistent with the core -5- philosophy and mission statement. Prioritizing services is essential and a practice that the HPLD does annually. It allows the HPLD to concentrate on high priority programs and cease providing those that patrons have little or no interest in. Long-term financial planning: The District's annual budget process includes the preparation of a five- year capital improvement plan (CIP) and a ten-year forecast of revenues and expenditures. The CIP identifies major construction and equipment needs that are on the horizon, as well as projections of those revenues dedicated for capital purchases. Also, of keen interest is the continued view beyond five years as to how operational expenditures will be met by the known revenue sources. A key component of the CIP is the District's commitment to maintaining its current infrastructure. Buildings and parking lots are evaluated annually, with resources dedicated to keeping infrastructure at acceptable quality levels and avoiding more costly major repairs and reconstruction. While the five-year CIP is a planning tool that is subject to change, it allows the District to prepare for major capital needs as well as match those needs with the appropriate projected revenue sources. Relevant financial policies: The Colorado Constitutional Amendment passed in November 1992, commonly known as the Taxpayer Bill of Rights (TABOR), restricts growth in governmental spending and revenues, with those amounts adjusted annually for inflation and a local growth factor. In November 1999, Weld County voters approved a referendum that allowed the HPLD to retain revenues that might otherwise have been refundable to citizens under the TABOR limits. As a result, the HPLD is able to retain any "excess" revenues and spend them for capital improvements, district operations and services, and other patron purposes. The District continues to be subject to other provisions of TABOR, including maintaining an emergency reserve equal to 3 percent of annual spending and the requirement for elections to approve any tax increase. Major initiatives: HPLD budgeted revenues for fiscal year 2020 increased by $10,716,460 or 29% compared to 2019. After beginning his work with HPLD in April 2018, One of Dr. Hortt's first projects was to develop a strategic plan for High Plains Library District. This involved holding focus groups with community members throughout the library district, meeting with other governmental and non-profit organizations, and having discussions with community leaders, board members, and staff. Dr. Hortt used the input from these stakeholders to develop a strategic plan that was presented to and approved by the board in November 2018. During 2019, work began on several of the strategic plan initiatives. In 2020, progress continued to be made on strategic plan initiatives. When COVID-19 restrictions were implemented in March 2020, HPLD staff created and revised programming to accommodate virtual presentations and other socially distanced options. The Summer Reading Program was conducted with on-line programming. Storytimes were presented virtually. Some programs were recorded and made available on demand. HPLD staff offered curb side delivery for patrons which became a popular option when COVID-19 restrictions prevented public access to the library buildings. Take and Make kits were also well received as patrons searched for educational and entertainment opportunities. HPLD continued collaboration with the Immigrant and Refugee Center to provide citizenship and ESL classes. To help bridge the digital divide, HPLD was able to obtain and place mobile WiFi access points at strategic locations in the community. Additional WiFi units were also made available for check out. The MOVE Department participated in a food program and distributed 703 meals. HPLD staff prepared a series of videos on using HPLD resources for job searching. Programing included some on-line cooking demonstrations on healthy cooking and cooking together. HPLD staff developed a learn the ukulele series for children and parent duos and STEAM workshops for Kindergarten to 5th grade students. -6- Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the High Plains Library District for its comprehensive annual financial report for the fiscal year ended December 31, 2019. This was the eighteenth consecutive year that the High Plains Library District has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance and administration departments. We would like to express our appreciation to all members of the District who assisted and contributed to the preparation of this report. Credit also must be given to the Board of Trustees for their unfailing support for maintaining the highest standards of professionalism in the management of the High Plains Library District's finances. We would also like to express our appreciation to the audit firm of Anderson & Whitney, P.C. who provided guidance in preparing the annual report. Respectfully submitted, Dr. Matthew Hortt Executive Director Natalie Wertz, CPA, CFE Finance Manager 7 HIGH PLAINS LIBRARY DISTRICT PRINCIPAL DISTRICT OFFICIALS Dr. Matthew Hortt Executive Director Edward A. Brewer Patron Experience Specialist Marjorie Elwood Associate Director of Public Services Rosa Granado Associate Director of Public Services Elena Rosenfeld Community Engagement and Strategies Manager Eric Ewing Associate Director of Human Resources James Melena Community Relations and Marketing Manager Niamh Mercer Foundation Director Rebecca Libersat Collection Resources Manager Susan Staples Information Technology Manager Natalie Wertz Finance Manager Associate Director of Public Services �Marjorie Elwood r Collection Resou ices See Branch Saucvs Or Chart Branch Services Sir Branch Sem cis Org Chart Executive Assistant Kim Parker Associate Director of Public Services Rosa Granado Community Engagement See Cutnmunits Engagement Chart Community Engagement & Strat: ies M ana er Executive Director Dr. Matthew Horn i Community Relations & Marketing James Melena r Graphics& Marketing Specialist Tiffany Aho Graphics & Marketing Specialist Josh Alto Manager of IT & Innovation Susan Staples IT lnfrasn name En _'meets I I Applications Engineer Jautifa Sullivan Ryan Kingsly I fl Application and Su , • n Anal \\r Marcus Selby Eric Mom IT TeelmICiarts Youssouf Diagana Library Process& Information Management Spiv ialist Barb Wttghi-Wisner High Plains Library District Organizational Chart Patron Experience Specialist Tony Brewer Finance Manager Natalie Wertz l.aVo►rtr Storwbtakct Director of Human Resources Eric Ewing HR Grnetalist I r:T r.i. 1 I I 1 Foundation Director Niamh Mercer 0 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to High Plains Library District Colorado For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 Executive Director/CEO ANdE•RSON WhITNEy Independent Auditors' Report Board of Trustees High Plains Library District Greeley, Colorado A Professional Corporation of Certified Public Accountants We have audited the accompanying financial statements of the governmental activities and the major funds of the High Plains Library District as of December 31, 2020, and for the year then ended, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. -11- 5801 West 11th Street . Suite 300 (970) 352-7990 Greeley, Colorado 80634-4813 www.awhitney.com Board of Trustees High Plains Library District Page 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major funds of the High Plains Library District as of December 31, 2020, and the changes in its financial position and the General Fund budgetary comparison for the year then ended in conformity with accounting principles generally accepted in the United States. Other Matters Accounting principles generally accepted in the United States require that management discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with evidence sufficient to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. June 9, 2021 - 12 - MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the report provides readers with a narrative overview and analysis of the financial activities of the High Plains Library District for the year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with the letter of transmittal and basic financial statements to enhance their understanding of the District's financial performance. FINANCIAL HIGHLIGHTS • High Plains Library District's assets exceeded liabilities and deferred inflows by $103.2 million at the end of 2020. Of this amount, approximately $59.1 million may be used to meet the District's ongoing obligations to patrons and creditors. The remaining $44.1 million are capital assets or are restricted by law. • The District's General Fund balance was $61,045,370 as of December 31, 2020. Of this amount, $1,329,302 is reserved for emergencies. • The 2020 General Fund balance is $11,755,939 higher than the previous year. The total fund balance is 138% of 2020 General Fund operating expenditures and transfers out. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The basic financial statements contain three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the basic statements, this report also contains other supplementary information including budgeting comparison statements for certain funds, and a statistical section. Government -wide Financial Statements: The government -wide financial statements are designed to provide readers with a broad overview of the District's finances in a manner similar to a private sector business. The statement of net position presents information on all of the District's assets, liabilities, and deferred resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the District's financial position is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). The government -wide financial statements can be found on pages 18-22 of this report. Fund financial statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. High Plains Library District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the High Plains Library District can be categorized as governmental funds. Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. -13- Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing soreaders may better understand the long-term impact of the government's near -term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The basic governmental fund financial statements can be found on pages 18 through 22 of this report. Budgetary comparisons: High Plains Library District adopts an annual appropriated budget for its funds. A budgetary comparison statement has been provided for the General Fund on pages 21 to 22 of this report. Notes to the financial statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 23 through 34 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS Net position: As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of December 31, 2020, net position was $103.2 million. The following table provides a summary of the District's net position at December 31: Table 1 - Net position (in Millions) 2020 2019 Assets Current and other assets $104.9 $95.6 Capital assets 42.8 34.2 Total assets 147.7 129.8 Liabilities Current and other liabilities .7 1.2 Long-term liabilities .7 .5 Total liabilities 1.4 1.7 Deferred Inflows Deferred Property Taxes 43.1 45.0 Net Position 42.8 34.2 Net assets Investment in capital Restricted 1.3 1.0 Unrestricted 59.1 47.8 Total net position $ 103.2 $ 83.0 A significant portion of High Plains Library District's net position (57%) represents unrestricted net position of $59.1 million, which may be used to meet the Library District's ongoing obligations to citizens and creditors. Another significant portion of the Library District's net position (42%) reflects its investment in capital assets. These assets include land, buildings, furniture, and equipment. These capital assets are used to provide services to citizens; consequently, they are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. The District's outstanding debt consisted of the certificates of participation that were repaid in 2019. An additional $1 million of the District's net position (1%) represents resources that are subject to external restrictions on how they may be used. Included in this category are the reserves for TABOR emergency and debt service requirements. The following table indicates the changes in net position: Governmental Activities 2020 2019 Revenues: General revenues: Property and specific ownership taxes Investment earnings Gain on disposal of asset Program revenues: Charges for services Operating grants and contributions Total revenues $ 46,485,430 $ 35,821,303 588,213 1,175,115 11,043 142,365 78,226 221,783 104,091 47,448,834 37,178,735 Expenses: Library services Operations and maintenance Depreciation Interest on long-term debt 22, 878, 594 3,217,360 1,187,767 20,245,525 3,633,708 1,247,557 90,056 Total expenses 27, 283, 721 25, 216,846 Increase in net position Beginning net position 20,165,113 82, 977, 551 11,961,889 71,015,662 Ending net position $ 103,142,664 $ 82,977,551 Governmental activities Governmental activities increased High Plains Library District's net position by $20,165,113 in 2020. Expenses totaled a 8% increase over the previous year. Increases occurred due to distributions to member libraries increasing as they are related to increased property taxes. -15- FINANCIAL ANALYSIS OF THE LIBRARY DISTRICT'S FUNDS As noted earlier, High Plains Library District uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds Overview: The focus of Library District governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Library District's financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government's net resources available for spending at the end of the year. As of the end of 2020, the combined ending fund balance of High Plains Library District governmental funds was $61.1 million. Approximately 66% of this consists of unrestricted fund balance, which is available as working capital and for current spending in accordance with the purposes of the specific funds. The remainder of fund balance is restricted to indicate that it is not available for new spending because it is committed for the following purposes: 1) state -constitution mandated emergency reserve of $1,329,302. The District has one major governmental fund: 1. General Fund. This is the primary operating fund of the High Plains Library District. It accounts for all of the District's library services. The general fund balance was $61.1 million as of December 31, 2020. The 2020 fund balance is $11.7 million more than the previous year. As a measure of the General Fund liquidity, it may be useful to compare both unrestricted fund balance and total fund balance to total fund expenditures and transfers out. Unrestricted fund balance represents 153% of total 2020 expenditures while total fund balance is 233% of the same amount. The fund balance increased in 2020 as property taxes were at record levels and more than the modest increase in spending. GENERAL FUND BUDGETARY HIGHLIGHTS The District's budget is prepared according to Colorado statutes. The most significant budgeted fund is the General Fund. In December of 2019, the Board of Trustees appropriated $50.0 million for general fund expenditures, anticipating a decrease in the fund balance. The actual was an increase of $10.9 million due to capital expenditures for new library facilities being shifted to 2021, and expenditures held under budget. The budget was not amended during the year. Table 2020 General Fund Budget (in Millions) Budget Actual Beginning Fund Balance $ 49.3 $ 49.3 Revenue 47.3 47.5 Expenditures 50.0 35.7 Ending Fund Balance $ 46.6 $ 61.1 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets: High Plains Library District's investment in capital assets for its governmental activities as of December 31, 2020 totals $42.8 million (net of accumulated depreciation). This investment includes all land, buildings, opening day collections, furniture, and equipment. Additional information on the District's capital assets can be found in Note 4 of this report. Long-term debt: At December 31, 2020, High Plains Library District had $0 in outstanding debt as it was paid off during 2019. OTHER MATTERS The following factors are expected to have a significant effect on the High Plains Library District's financial position or results of operations and were taken into account in developing the 2021 budget: • HPLD budgeted revenues for fiscal year 2021 decreased slightly compared to 2020. The 2021 budget includes funds to address the future home of the Library Innovation Center, develop the Grover access point, and enhance the Kersey Library with a new building. • Continued growth in Weld County causes increased demands in all service areas of the library system. • Oil and gas property tax revenues continue to be very volatile. Property tax revenue is expected to decrease by 2% in 2021 compared to 2020. Budgeted expenditures for 2021 include funding to meet the demands placed by our patrons for library materials as well as increased programing for all ages and just over $7.5 million for capital improvements. • The economy for the State of Colorado and Weld County continues to improve at a faster pace than the nation as a whole. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of High Plains Library District's finances for all those with an interest in the District's finances. Questions concerning any of the information provided or for additional financial information should be addressed to the Finance Manager, 2650 West 29th Street Greeley, CO 80631. -17- HIGH PLAINS LIBRARY DISTRICT GOVERNMENTAL FUNDS BALANCE SHEET/ STATEMENT OF NET POSITION December 31, 2020 General Fund Adjustments (Note 10) Statement of Net Position ASSETS Cash and Investments Receivables: Property taxes Other assets Capital Assets: Depreciable Nondepreciable $ 61,294,343 $ 43,094,586 479,151 34,207,761 8,588,952 $ 61,294,343 43,094,586 479,151 34,207,761 8,588,952 Total Assets 104,868,080 42,796,713 147,664,793 LIABILITIES Accounts Payable Accrued Costs Long -Term Liabilities: Due after one year Total Liabilities 516,734 211,390 728,124 699,419 516,734 211,390 699,419 699,419 1,427,543 DEFERRED INFLOWS OF RESOURCES Deferred Property Taxes 43,094,586 43,094,586 FUND BALANCES/NET POSITION Fund Balances: Restricted for: Emergencies Assigned for capital projects Unassigned 1,329,302 19,584,220 40,131,848 (1,329,302) (19,584,220) (40,131, 848) (1,329,302) (19,584,220) (40,131,848) Total Fund Balances 61,045,370 (61,045,370) (61,045,370) Total Liabilities and Fund Balances $ 104,868,080 Net Position: Net investment in capital assets Restricted for emergencies Unrestricted 42,796,713 1,329,302 59,016,649 42,796,713 1,329,302 59,016,649 Total Net Position $103,142,664 $ 103,142,664 See Accompanying Notes to Financial Statements. -18- HIGH PLAINS LIBRARY DISTRICT STATEMENT OF GOVERNMENTAL FUNDS REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCES/ STATEMENT OF ACTIVITIES Year Ended December 31, 2020 General Adjustments Statement of Fund (Note 11) Activities Revenue: General property taxes Specific ownership taxes Penalties and interest on delinquent taxes Library fines Earnings on investments Grant Miscellaneous Gain on disposal of asset $44,310,058 $ - $ 44,310,058 2,175,372 2,175,372 44,881 44,881 23,860 23,860 588,213 588,213 207,579 207,579 87,828 87,828 11,043 11,043 Total Revenue 47,448,834 47,448,834 Expenditures/Expenses: Current: Salaries, wages, and benefits Supplies Small equipment Software Postage Printing Book collections Periodicals Public relations Electronic resources CD and online databases Telephone Contract services Buildings and grounds Travel and meetings County Treasurer's fees Maintenance of equipment Memberships Miscellaneous Insurance Utilities Grants-in-aid: property taxes to member libraries (Note 3) Depreciation 10,725,361 157,746 10,883,107 330,438 330,438 38,109 38,109 316,423 316,423 20,460 20,460 4,462 4,462 569,428 569,428 37,232 37,232 51,456 51,456 707,895 707,895 43,637 43,637 262,020 262,020 1,101,054 1,101,054 231,174 231,174 71,320 71,320 662,389 662,389 571,716 571,716 17,686 17,686 1,904 1,904 50,190 50,190 329,634 329,634 9,794,220 - 9,794,220 1,187,767 1,187,767 Total Current 25,938,208 1,345,513 27,283,721 Continued on next page. -19- HIGH PLAINS LIBRARY DISTRICT STATEMENT OF GOVERNMENTAL FUNDS REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCES/ STATEMENT OF ACTIVITIES - Continued Year Ended December 31, 2020 General Adjustments Statement of Fund (Note 11) Activities Expenditures/Expenses - Continued: Capital Outlay Debt Service: Principal Interest and Fees $ 9,754,687 $ (9,754,687) $ Total Expenditures/Expenses 35,692,895 (8,409,174) 27,283,721 Revenue Over (Under) Expenditures Other Financing Sources (Uses): Transfers - internal activities 11,755,939 8,409,174 20,165,113 Net Change in Fund Balances/Net Position 11,755,939 8,409,174 20,165,113 Fund Balances/Net Position, Beginning of Yea' 49,289,431 33,688,120 82,977,551 Fund Balances/Net Position, End of Year $ 61,045,370 $ 42,097,294 $ 103,142,664 See Accompanying Notes to Financial Statements. -20- HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON STATEMENT - GENERAL FUND Year Ended December 31, 2020 Actual Original and Final Budget Variance Revenue: General property taxes Specific ownership taxes Penalties and interest on delinquent taxes Grants Library fines Earnings on investments Contributions - in kind Miscellaneous Gain on dsposal of asset $ 44,310,058 2,175,372 44,881 207,579 23,860 588,213 87,828 11,043 $ 45,043,922 2,000,000 72,519 60,000 190,000 7,800 8,000 $ (733,864) 175,372 44,881 135,060 (36,140) 398,213 (7,800) 79,828 11,043 Total Revenue 47,448,834 47,382,241 66,593 Expenditures: Current: Salaries, wages, and benefits Supplies Small equipment Software Postage Printing Book collection Periodicals Public relations Electronic resources CD and Online databases Telephone Contract services Buildings and grounds Travel, training, and meetings County Treasurer's fees Maintenance of equipment Memberships Miscellaneous Insurance Rent contributions - in kind Utilities Grants-in-aid: property taxes to member libraries (Note 3) 10,725,361 330,438 38,109 316,423 20,460 4,462 569,428 37,232 51,456 707,895 43,637 262,020 1,101,054 231,174 71,320 662,389 571,716 17,686 1,904 50,190 329,634 9,794,220 12,928,443 2,203,082 531,854 201,416 99,612 61,503 320,232 3,809 36,622 16,162 20,800 16,338 598,000 28,572 46,500 9,268 110,900 59,444 759,000 51,105 63,850 20,213 253,585 (8,435) 1,300,285 199,231 478,900 247,726 250,584 179,264 701,500 39,111 916,432 344,716 20,239 2,553 7,475 5,571 92,000 41,810 7,800 7,800 349,625 19,991 10,097,211 302,991 Total Current 25,938,208 29,991,449 4,053,241 Capital Outlay 9,754,687 20,005,020 10,250,333 Total Expenditures 35,692,895 49,996,469 14,303,574 Continued on next page. -21- HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON STATEMENT - GENERAL FUND - Continued Year Ended December 31, 2020 Actual Original and Final Budget Variance Revenue Over Expenditures Other Financing Sources (Uses): Transfer to Debt Service Fund $ 11,755,939 $ (2,614,228) $ 14,370,167 Excess of Revenue Over Expenditures and Other Financing Sources (Uses) Fund Balance - Beginning 11,755,939 49,289,431 (2,614,228) 49,289,431 14,370,167 Fund Balance - Ending $ 61,045,370 $ 46,675,203 $ 14,370,167 See Accompanying Notes to Financial Statements. -22- HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies: The accounting and reporting policies of the High Plains Library District (the District) conform to accounting principles generally accepted in the United States. The following summary of significant accounting policies is presented to assist the reader in evaluating the District's financial statements. Reporting Entity: The Weld Library District was established on September 11, 1985, under the provisions of Article 90 of Title 24 of the Colorado Revised Statutes. The Weld County Commissioners together with the city councils of Evans, Fort Lupton, and Greeley, and the town boards of Ault, Eaton, and Hudson, Colorado, and the governing board of Weld School District RE -8 acted to establish the Weld Library District. On April 21, 2008, the District's Board of Trustees approved a name change to the High Plains Library District. The Library District Board was originally appointed by the Weld County Commissioners with concurrence of the city councils and has total autonomy under the State Library Act to incur debt, establish budgets, and levy property taxes to support the District's library system. In addition, the Weld Library Finance Corporation was formed in 2001 for the purpose of purchasing, leasing, or otherwise acquiring certain real property and to construct or install certain improvements in the service area of the District. The Weld Library Finance Corporation is blended with the financial statements of the District. The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States as applied to governmental entities. The following summary of significant accounting policies is presented to assist the reader in evaluating the District's financial statements. Government -wide and Fund Financial Statements: The District reports as a special purpose government engaged in a single governmental program. The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Government activities are supported by taxes and intergovernmental revenues. Separate financial statements are provided for the governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. - 23 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies - Continued: Measurement Focus, Basis of Accounting, and Financial Statement Presentation: The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within a current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes and interest associated with the current year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. The District reports the following major governmental fund: The general fund is the District's primary operating fund. It accounts for all financial resources of the District, except those required to be accounted for in another fund. Fund Equity: In the fund financial statements, governmental funds report restrictions of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Restrictions for the District are recorded up to the maximum equity available in the fund balance and consist of: - 24 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies - Continued: Fund Equity — Continued: Restricted for Emergencies: These restrictions are established to comply with TABOR. Recorded TABOR restrictions at December 31, 2020 are $1,329,302. Assigned fund balances, if any, are amounts the District intends to use for a specific purpose. Intent can be expressed by the Board of Trustees or by the executive director, to whom the Board delegated the authority. Fund balance may be assigned after the end of the reporting period. Restricted funds are considered to be spent first, followed by committed, assigned and unassigned, for an expenditure for which any could be used. Net Position: Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition and construction of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors, laws, or regulations of other governments. The District first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. Budget: An annual budget and appropriation ordinance is adopted by the Board in accordance with the Colorado State Budget Law. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States for all governmental funds. The accounting system is employed as a budgetary management control device during the year to monitor the individual expenditures. The legal level of control is at the fund level. All annual appropriations lapse at year end. No budget amendments were necessary. - 25 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies - Continued: Capital Assets: All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their acquisition value on the date donated. Acquisitions of capital assets are recorded as capital outlay expenditures within the governmental funds. The District's capitalization level is $5,000. Capital assets are depreciated as appropriate for the government -wide statement of activities. Depreciation is provided on the straight-line basis over useful lives ranging from three years for computer equipment to fifty years for buildings. The library's "opening day" collection of books and other materials is capitalized at estimated historical cost. As individual items are replaced or updated as necessary, the collection is considered inexhaustible and is not depreciated. Subsequent purchases of materials are not capitalized unless they significantly expand the opening day collection. Property Taxes: Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied no later than December 15 and are payable in two installments on February 28 and June 15 or in full on April 30. The District records delinquent tax payments in the year received, as delinquent taxes are believed to be uncollectible. The Weld County Treasurer and the Boulder County Treasurer bill and collect the property taxes for the District. The original January 1, 2020, levies for the general fund of the District are as follows: Mill Levy Amount General Fund 3.177 $ 45,043,922 Property tax revenue is reported net of approximately $762,114 of property tax abatements for the year ended December 31, 2020. Numerous tax increment financing districts have been established by municipalities in the District. - 26 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies - Continued: Vacation and Sick Leave: Accrued sick leave for the District is accounted for in the government -wide statement of net position. Sick leave is earned when vested and recorded as expenditure in the general fund when paid. In the event of retirement or termination, an employee whose date of hire is prior to January 1, 1985, is paid for 50% of accumulated sick -leave hours up to the equivalent of one month. Accrued vacation for the District is accounted for in the government -wide statement of net position. The maximum accumulation is two times the annual accrual. Upon termination or retirement, employees are paid for their accrued vacation. Accrued vacation is recorded as expenditure in the General Fund when paid. Investments: Short-term investments are reported at fair value. NOTE 2 - Cash and Investments: The District's bank accounts at year end were entirely covered by federal depository insurance or by collateral held by the District's custodial bank under provisions of the Colorado Public Deposit Protection Act. The Colorado Public Deposit Protection act requires financial institutions to pledge collateral having a market value of at least 102% of the aggregate public deposits not insured by federal depository insurance. Eligible collateral includes municipal bonds, U.S. government securities, mortgages and deeds of trust. State statutes authorize the District to invest in obligations of the U.S. Treasury and U.S. agencies, obligations of the state of Colorado or of any county, school district, and certain towns and cities therein, notes or bonds secured by insured mortgages or trust deeds, obligations of national mortgage associations, and certain repurchase agreements. The District's investment policy is not more restrictive than State statutes. The District's investments are concentrated in money market funds and local government investment pools (65%), Corporate bonds (12%), and U.S. Treasury sponsored agency bonds (23%). Colorado Revised Statutes limit investment maturities to five years or less from the date of purchase. This limit on investment maturities is a means of limiting exposure to fair values arising from increasing interest rates. - 27 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 2 - Cash and Investments - Continued: At December 31, 2020, the Library District held General Fund investments of $42,597,879 in the Colorado Local Government Liquid Asset Trust (COLOTRUST). The investment pool is routinely monitored by the Colorado Division of Securities with regard to operations and investments. Investments are valued at the net asset value (NAV) with each share valued at $1.00. COLOTRUST is rated AAAm by Standard & Poor's. The District's interest is valued at NAV. COLOTRUST portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities and certain obligations of U.S. government agencies, highest rated commercial paper and any security allowed under CRS 24-75-601. At December 31, 2020 COLOTRUST had a weighted average maturity of 47 days to reset and 69 days to final maturity. There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. At December 31, 2020, the Library District held general fund investments of $10,275,993 in the Colorado Statewide Investment Program (CSIP). The investment pool is routinely monitored by the Colorado Division of Securities with regard to operations and investments. Investments are valued at the net asset value (NAV) with each share valued at $1.00. CSIP is rated AAAm by Standard & Poor's. The District's interest is valued at NAV. CSIP portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. and certain obligations of U.S. government agencies, highest rated commercial paper and any security allowed under CRS 24-75- 601. At December 31, 2020 CSIP had a weighted average maturity of 53 days to final maturity. There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. Investments held as of December 31, 2020 are as follows: Cost Fair Value U.S. Government Treasury and Sponsored Agency Bonds, primarily FNMA, FFCB, and FHLB, maturing in 2021 through 2022, rated AA+ by Standard & Poor's $ 7,000,465 Corporate Bonds — maturing in 2022, rated Aa1 and Aa3 1,012,670 Total $ 8,013,135 $ 7,109,563 1,036,189 $ 8,145,752 - 28 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 2 - Cash and Investments - Continued: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities The following table presents the fair value measurements of assets and liabilities recognized in the accompanying statement of net position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31: Description December 31, 2020 U.S. Government Treasury and Sponsored Agency Bonds Corporate Bonds Fair Value Measurements at Reporting Date Using Quoted Prices In Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level3) $ 7,109,563 1,036,189 - 29 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 3 - Grants -In -Aid: Cash grants-in-aid paid to member libraries for library services are listed below: Year Ended December 31, 2020 Amount Town of: Ault Eaton Fort Lupton Hudson Johnstown Platteville $ 523,510 1,416,058 3,443,637 2,532,495 827,171 1,051,349 $ 9,794,220 Grants-in-aid are determined by the amount of property tax collected from incorporated areas in those libraries defined service areas and are for library services. Additional grants-in-aid in the form of equipment donations are also occasionally made. - 30 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 4 — Capital Assets: Capital asset activity for the year ended December 31, 2020 was as follows: Balance, Deletions/ Balance, 1/1/20 Additions Transfers 12/31/20 Not Depreciated: Land $ 716,670 $ -- $ -- $ 716,670 Opening day book collection 2,927,201 2,927,201 Construction in process 500,033 4,445,048 4,945,081 Depreciated: Buildings 34,960,662 4,780,106 39,740,768 Building improvements 4,712,694 69,974 4,782,668 Equipment and furniture 4,770,133 459,559 310,003 4,919,689 Total Cost 48,587,393 9,754,687 310,003 58,032,077 Less Accumulated Depreciation: Buildings 8,456,312 761,473 9,217,785 Building improvements 1,903,533 251,053 2,154,586 Equipment and furniture 3,997,755 141,764 276,526 3,826,993 Total Accumulated Depreciation 14,357,600 1,154,290 276,526 15,235,364 Capital Assets, net $ 34,229,793 $ 8,600,397 $ 33,477 $ 42,796,713 Depreciation expense is substantially all related to library services. NOTE 5 - Long -Term Liabilities: Changes in long-term liabilities during the year were as follows: Balance Balance Due Within 1/1/20 Additions Deletions 12/31/20 One Year Compensated Absences $ 541,673 $ 203,677 $ 45,931 $ 699,419 $ 541,673 $ 203,677 $ 45,931 $ 699,419 $ $ - 31 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 6 - Consolidation Agreement with City of Greeley: On December 28, 1990, the District entered into an intergovernmental agreement with the City of Greeley to consolidate their operations. The agreement provides for the transfer of the ownership and control of all of the Greeley Public Library to the District exclusive of the building previously housing the Greeley Public Library along with all associated appurtenances and fixtures. In October 2019 the District signed a contract to purchase a building in downtown Greeley for $4,000,000 in 2020. The purchase was finalized in March 2020 and no debt was incurred. NOTE 7 - Risk Management: The District is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, and injuries to employees and natural disasters. The District purchases commercial insurance for risks of loss in excess of deductible amounts. Insurance coverage has not been significantly reduced from prior years and settlements have not exceeded insurance coverage in the past three years. NOTE 8 - Taxpayer's Bill of Rights: In November 1992, the voters of Colorado approved Amendment 1, commonly known as the Taxpayer's Bill of Rights (TABOR), which added a new Section 20 to Article X of the Colorado Constitution. TABOR contains tax, spending, revenue, and debt limitations which apply to the State of Colorado and all local governments. TABOR generally requires voter approval for any new tax, tax rate increase, mill levy increase, or issuance of new debt. Spending not subject to TABOR includes that from enterprise activities, gifts, federal funds, reserve expenditures, damage awards or property sales. Included in the accompanying financial statements in the General Fund is an emergency reserve of $1,329,302 as required by TABOR. In November 1999, voters approved a District mill levy increase of 1.8 mills and a resolution to exempt the increase from TABOR. The mill levy shall be reduced by $1 million annually beginning in the collection year of 2020. TABOR is complex and subject to interpretation. Ultimate implementation may depend upon litigation and legislative guidance. - 32 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 9 — Retirement Plan: The High Plains Library District pension plan is a single -employer, defined contribution retirement plan. The plan provides retirement and death benefits to plan members and beneficiaries. The Board of Trustees maintains the authority to establish and amend provisions of the plan. Employees of the High Plains Library District who are hired to work at least 30 hours per week and are at least 18 years of age are eligible to participate in the plan. Participants are always 100% vested in their participant contributions and become fully vested in the employer contributions after 5 years of service. The plan is administered by John Hancock. The contribution requirements of plan members and the District are established and maintained by the Board of Trustees. Plan members are required to contribute 6% of their annual covered payroll. The District is required to contribute 6% of annual covered payroll. During 2020, employees contributed $406,922 and the District contributed $406,922 to the plan. The amount payable to the plan at December 31, 2020 was $38,765. Forfeitures were not material to the financial statements. NOTE 10 — Explanation of Adjustments Between Governmental Funds Balance Sheet and the Statement of Net Position: Amounts reported in the statement of net position are different because (see Note 11 also): December 31 2020 Total fund balances of governmental funds Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds $ 61,045,370 42,796,713 (699,419) Total Net Position $ 103,142,664 - 33 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 11 - Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities: Amounts reported for governmental activities in the statement of activities are different because (see Note 10 also): Year Ended December 31 2020 Net change in fund balances — total governmental funds $ 11,755,939 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as a depreciation expense. This is the amount by which capital outlay ($9,754,687) was more than depreciation ($1,187,767) in the current year. 8,566,920 Compensated absence expense reported in the statement of activities does not require the use of current financial resources and is not reported as an expenditure in governmental funds (157,746) Change in Net Position of Governmental Activities $ 20,165,113 - 34 - STATISTICAL SECTION-+ - 35 - STATISTICAL SECTION (unaudited) This part of the High Plains Library District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the district's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the district's financial performance and well-being have changed Revenue Capacity Pages These schedules contain information to help the reader assess the district's most significant local revenue source, the property tax... ... ... ... .....43-45 Debt Capacity These schedules present information to help the reader assess the affordability of the district's current levels of outstanding debt and the district's ability to issue additional debt in the future.................................46-48 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the district's financial activities take place......................................................................... 49-50 Operating Information These schedules contain service data to help the reader understand how the information in the district's financial report relates to the services the district provides and the activities it performs ................................. 51-53 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. - 36 - High Plains Library District Net Position by Component Last Ten Years (accrual basis of accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities Net Investment in capital assets Restricted for Debt service Emergencies Unrestricted Total governmental activities net assets Primary government Net Investment in capital assets Restricted Unrestricted Total primary government net position $12,298,749 $13,537,209 $15,481,507 $22,620,113 $22,839,391 $ 31,182,064 $ 30,931,304 $ 31,173,769 $ 34,229,793 $ 42,793,713 929,937 930,828 931,956 933,107 934,901 956,155 957,200 965,467 449,770 515,291 598,917 684,707 862,082 1,123,404 872,179 824,477 1,004,893 1,329,302 13,109,042 13,360,265 14,596,825 11,910,752 18,464,841 21,298,931 29,741,271 38,051,949 47,742,865 59,016,649 $26,787,498 $28,343,593 $31,609,205 $36,148,679 $43,101,215 $ 54,560,554 $ 62,501,954 $ 71,015,662 $ 82,977,551 $ 103,139,664 12,298,749 13,537,209 15,481,507 22,620,113 22,839,391 31,182,064 30,931,304 31,173,769 34,229,793 42,793,713 1,379,707 1,446,119 1,530,873 1,617,814 1,796,983 2,079,559 1,829,379 1,789,944 1,004,893 1,329,302 13,109,042 13,360,265 14,596,825 11,910,752 18,464,841 21,298,931 29,741,271 38,051,949 47,742,865 59,016,649 $26,787,498 $28,343,593 $31,609,205 $36,148,679 $43,101,215 $ 54,560,554 $ 62,501,954 $ 71,015,662 $ 82,977,551 $ 103,139,664 High Plains Library District Changes in Net Position Last Ten Years (accrual basis of accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Expenses Governmental activities: General government Interest on long term debt Debt issuance costs Total governmental activities expenses $ 13,607,335 $ 15,346,468 $ 16,840,316 $ 18,129,352 $ 21,711,526 $ 25,922,845 $ 21,448,708 $ 21,989,801 $ 25,126,790 $ 27,283,721 734,515 704,412 665,007 622,536 580,418 519,145 141,872 122,906 90,056 14,389 14,389 - - - - - - - $ 14,356,239 $ 16,065,269 $ 17,505,323 $ 18,751,888 $ 22,291,944 $ 26,441,990 21,590,580 22,112,707 25,216,846 27,283,721 Program Revenues Governmental activities: Charges for services: General government 178,005 201,749 176,750 174,026 156,912 101,381 89,100 85,288 62,673 97,484 Operating grants and contributions 113,750 126,248 185,227 137,247 192,479 122,808 76,675 137,901 119,644 277,707 Total governmental activities program revenues $ 291,755 $ 327,997 $ 361,977 $ 311,273 $ 349,391 $ 224,189 $ 165,775 $ 223,189 $ 182,317 $ 375,191 Net (Expenses)/Revenue Governmental activities Total primary government net General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property taxes Specific ownership Unrestricted investment earnings Total governmental activities Total primary government Change in Net Assets Governmental activities Total primary government $(14,064,484) $ (15,737,272) $ (17,143,346) $ (18,440,615) $ (21,942,553) $ (26,217,801) $(21,424,805) $ (21,889,518) $(25,034,529) $ (26,908,530) $ 13,602,800 $ 15,849,259 $ 19,043,402 $ 21,048,874 26,881,943 35,238,427 26,961,850 27,482,605 33,496,472 44,310,058 979,076 1,280,320 1,298,477 1,784,930 1,854,124 2,223,890 2,125,055 2,128,161 2,324,831 2,175,372 128,210 163,788 167,822 146,285 159,022 214,921 279,300 792,460 1,175,115 588,213 14,710,086 17,293,367 20,509,701 22,980,089 28,895,089 37,677,238 29,366,205 30,403,226 36,996,418 47,073,643 $ 14,710,086 $ 17,293,367 $ 20,509,701 $ 22,980,089 $ 28,895,089 $ 37,677,238 $ 29,366,205 $ 30,403,226 $ 36,996,418 $ 47,073,643 $ 645,602 $ 1,556,095 $ 3,366,355 $ 4,539,474 $ 6,952,536 $ 11,459,437 $ 7,941,400 $ 8,513,708 $ 11,961,889 $ 20,165,113 $ 645,602 $ 1,556,095 $ 3,366,355 $ 4,539,474 $ 6,952,536 $ 11,459,437 $ 7,941,400 $ 8,513,708 $ 11,961,889 $ 20,165,113 High Plains Library District Fund Balances of Governmental Funds Last Ten Years (modified accrual basis of accounting) General Fund Restricted Unrestricted, unassigned Assigned Total general fund All other Governmental Funds Restricted Total for all governmental funds 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ 449,770 $ 515,291 $ 598,917 $ 684,707 $ 13,278,254 $ 13,541,761 $ 14,250,893 $ 12,287,812 $ 862,082 13,710,589 5,170,000 $ 19,742,671 $ 22,899,278 $ 1,123,404 16,348,874 5,427,000 872,179 $ 824,477 22,850,568 15,710,138 7,977,350 21,809,300 31,700,097 $38,343,915 $ 1,004,893 28,700,318 19,584,220 $ 49,289,431 $ 61,045,370 $ 1,329,302 40,131,848 19,584,220 $ 13,728,024 $ 14,057,052 $ 14,849,810 $ 12,972,519 $ 929,965 $ 930,828 $ 931,956 $ 933,107 $ 14,657,989 $ 14,987,880 $ 15,781,766 $ 13,905,626 934,901 $ 956,155 957,200 $ 965,467 $ 20,677,572 $ 23,855,433 32,657,297 $39,309,382 $ 49,289,431 61,045,370 High Plains Library District Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) Revenues Taxes Charges for services Library fines Earnings on investments Contributions in kind - rent Miscellaneous Total revenues Expenditures General government Capital outlay Debt issuance costs Debt service Interest Principal Total expenditures 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $14,581,876 $17,129,579 $20,341,879 $22,823,587 $28,750,311 $ 37,462,247 $ 29,086,905 $ 29,610,766 $ 35,821,303 $ 46,530,311 21,504 25,106 154,588 168,186 167,834 174,026 156,912 101,381 89,100 85,288 62,673 23,860 128,210 163,788 167,822 146,285 159,022 214,921 279,300 792,460 1,175,115 588,213 113,750 113,750 113,750 113,750 113,750 47,395 1,913 20,955 80,393 33,714 64,485 75,413 76,675 137,901 119,644 306,450 15,001,841 17,621,364 20,871,678 23,291,362 29,244,480 37,901,357 29,531,980 30,626,415 37,178,735 47,448,834 12,573,567 14,237,613 15,651,701 16,982,271 20,271,134 24,501,391 20,156,867 479,764 957,104 2,323,740 6,090,351 108,638 370,588 70,531 20,675,360 23,850,047 25,938,208 1,588,270 2,236,239 9,754,687 676,859 646,756 607,351 564,880 522,762 461,489 82,716 65,250 32,400 1,405,000 1,450,000 1,495,000 1,530,000 1,570,000 9,390,000 1,020,000 1,045,000 1,080,000 15,135,190 17,291,473 20,077,792 25,167,502 22,472,534 34,723,468 21,330,114 23,373,880 27,198,686 35,692,895 Excess of revenues over (under) expenditures (133,349) 329,891 793,886 (1,876,140) 6,771,946 3,177,889 Other financing sources (uses) Transfers in Transfers out Proceeds of debt Payment to refunded debt escrow agent Sale of capital assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 8,201,866 7,252,535 9,980,049 11,755,939 2,094,717 2,095,385 2,102,192 2,094,880 2,092,762 9,867,206 1,102,716 1,110,250 1,112,400 (2,094,717) (2,095,385) (2,102,192) (2,094,880) (2,092,762) (9,867,206) (1,102,716) (1,110,250) (1,112,400) $ (133,349) $ 329,891 $ 793,886 $ (1,876,140) $ 6,771,946 $ 3,177,889 $ 8,201,866 $ 7,252,535 $ 9,980,049 $ 11,755,939 14.21% 12.84% 11.84% 10.98% 9.36% 28.68% 5.19% 5.10% 4.46% 0.00% 9 High Plains Library District General Governmental Expenditures By Function Last Ten Fiscal Years Fiscal Administrative Books; Facilities Grants Capital Debt Year Salaries Benefits Services Resources Operations In Aid Outlay Service Totals 2011 4,972,908 1,270,033 1,691,690 1,056,746 996,174 2,586,016 479,764 2,081,859 15,135,190 2012 5,334,425 1,389,422 1,772,378 1,239,946 1,272,936 3,228,506 957,104 2,096,756 17,291,473 2013 5,644,619 1,306,285 2,056,482 1,248,730 1,315,355 4,080,230 2,323,740 2,102,351 20,077,792 20141 6,120,836 1,675,209 1,780,284 1,238,798 1,598,867 4,577,277 6,090,351 2,094,880 25,176,502 2015 6,724,535 1,971,410 2,006,234 1,633,200 1,406,582 6,529,173 108,638 2,092,762 22,472,534 20162 7,127,174 2,041,965 2,632,139 1,652,204 1,609,406 9,438,503 370,588 9,851,489 34,723,468 2017 6,928,292 2,014,659 2,291,142 1,117,897 1,577,637 6,227,241 70,530 1,102,716 21,330,114 2018 7,238,335 2,164,073 2,387,221 1,192,694 1,610,030 6,083,007 1,588,720 1,110,250 23,374,330 2019 7,810,132 2,410,831 2,690,406 1,408,652 1,799,617 7,730,409 2,236,239 1,112,400 27,198,686 20203 8,095,580 2,629,781 2,670,119 1,358,192 1,390,316 9,794,220 9,754,687 - 35,692,895 Note: 1 The large increase in capital outlay reflects the construction costs of the Riverside Library and Cultural Center. 2 The large increase in debt service reflects the early repayment of the 2006 Certificates of Participation. 3 The large increase in capital outlay reflects the construction cost of the Erie Library expansion. High Plains Library District General Governmental Revenues By Source Last Ten Fiscal Years Specific Fiscal Property Ownership Interest Year Taxes Taxes Income Grants Fines Miscellaneous Total 2011 13,602,800 979,076 128,210 - 154,588 137,167 15,001,841 2012 15,849,259 1,280,320 163,788 12,498 168,186 147,313 17,621,364 2013 19,043,402 1,298,477 167,822 71,477 167,834 122,666 20,871,678 2014 21, 038, 657 1,784,930 146,285 16,302 174,026 131,162 23, 291, 362 2015 26,881,943 1,854,124 159,022 55,436 156,912 137,043 29,244,480 2016 35,238,427 2,223,820 214,921 60,836 101,381 61,972 37,901,357 2017 26,961,850 2,125,055 279,300 65,578 89,100 11,097 29,531,980 2018 27,515,331 2,128,161 738,244 62,302 85,288 75,599 30,604,925 2019 33,496,472 2,324,831 1,175,115 94,288 62,673 25,256 37,178,635 2020 44,310,058 2,175,372 588,213 207,579 23,860 143,752 47,448,834 Source: HPLD CAFR High Plains Library District Property Tax Levies and Collections Last Ten Fiscal Years (amounts expressed in thousands) Levy Collect Year Year Total Tax Levy for Fiscal Year' Collected within the Fiscal Year of the Levy Tax Amount 2 Percent of Levy Collections in Subsequent Total Collections to Date Years 3 Tax Amount Percent of Levy 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 Source: Final Budget 2 YTD Treasurer's Tax Distribution 3 Not available for years not shown 13,609 15,880 19,074 21,063 27,320 35,255 26,930 27,390 33,949 45,044 13,581 15,832 19,023 21,038 26,882 35,223 26,962 27,515 33,870 44,671 43 99.8% 99.7% 99.7% 99.9% 98.4% 99.9% 100.1% 100.5% 99.8% 99.2% 13,581 99.8% 15,832 99.7% 19,023 99.7% 21,038 99.9% 26,882 98.4% 35,223 99.9% 26,962 100.1% 27,515 100.5% 33,870 99.8% 44,671 99.2% High Plains Library District Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousands of dollars) Assessed Total Value as a Taxable Estimated Total % of Levy Vacant Residential Commercia Industrial Natural State Assessed Actual Direct Tax Actual Year Land Property I Property Property Agricultural Resources Oil & Gas Assessed Value Taxable Value Rate Value 2011 59,313 893,155 600,970 207,560 109,046 12,221 2,338,283 593,893 4,814,441 19,664,487 3.249 24.483% 2012 55,684 902,490 637,249 279,787 111,959 11,555 3,225,865 625,554 5,850,143 21,467,579 3.249 27.251% 2013 49,578 897,581 613,627 325,483 132,082 14,056 3,750,013 678,356 6,460,776 22,463,026 3.249 28.762% 2014 46,605 915,284 620,508 430,782 138,769 14,625 5,544,193 710,011 8,420,777 25,523,496 3.249 32.992% 2015 55,985 1,146,858 655,020 525,734 168,228 18,440 7,374,473 740,461 10,685,199 31,560,980 3.249 33.856% 2016 48,576 1,192,400 677,672 680,033 172,787 18,187 4,708,785 771,524 8,269,964 29,936,864 3.249 27.625% 2017 65,994 1,413,932 764,517 795,317 197,001 18,605 4,369,798 813,039 8,438,203 35,327,035 3.249 23.886% 2018 57,708 1,460,074 785,202 822,019 199,744 22,062 6,338,480 814,026 10,499,315 38,645,508 3.249 27.168% 2019 76,518 1,789,785 959,571 938,681 190,691 25,222 9,194,058 893,660 14,068,186 48,245,043 3.177 29.160% 2020 66,708 1,846,452 988,053 1,217,340 195,667 25,995 8,297,234 1,036,480 13,673,929 49,819,777 3.177 27.447% Source: Weld County Assessor's office 44 High Plains Library District Principal Taxpayers December 31, 2020 2020 Taxable Assessed Value Percentage of Total Taxable Assessed Rank Value Kerr-Mcgee Oil & Gas Onshore LP Noble Energy Inc. PDC Energy Inc. Extraction Oil & Gas LLC Crestone Peak Resources, LP Highpoint Operating Corporation Bonanza Creek Energy Inc. PDC Energy Inc.(KEA) Great Western Oil & Gas Co LLC Kerr Mcgee Gathering LLC Encana Oil & Gas (USA) Inc. Vestas Blades America Inc. Public Service Company of Colorado (Xcel) Colorado Interstate Gas Co. Petroleum Development Corp. Merit Energy DCP Midstream LP Total Gross Taxable Assessed Valuation Source: Weld County Assessor 2,054,086,240 1,380,683,980 1,150,639,650 601,100, 310 459,131, 310 447,879,840 390,730,470 362,805,270 326,272,340 266,453,900 $ 7,439,783,310 $ 13,673,932,860 45 1 2 3 4 5 6 7 8 9 10 15.02% 10.10% 8.41% 4.40% 3.36% 3.28% 2.86% 2.65% 2.39% 1.95% 2011 Percentage of Total Taxable Taxable Assessed Assessed Value Rank Value 737,284,110 2 978,636,640 1 63,672,300 7 184,505,010 3 182,601,420 4 158,911,600 5 74,626,980 6 49,306,900 8 35,685,060 9 34,991,500 10 54.41% $2,500,221,520 18.45% 24.49% 1.59% 4.62% 4.57% 3.98% 1.87% 1.23% 0.89% 0.88% 51.92% High Plains Library District Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Actitivities Fiscal Certificates of Year Participation 2008 20,480,000 2009 19,415,000 2010 19,466,100 2011 18,118, 756 2012 16, 726, 412 2013 15,635, 000 2014 14,105, 000 2015 12,535,000 2016 3,145,000 2017 2,125,000 2018 1,080,000 2019 - 2020 Total Library District Percentage of Personal Income 1 Per Capita 1 20, 480, 000 19,415,000 19,466,100 18,118, 756 16,726,412 15,635,000 14,105, 000 12, 535, 000 3,145, 000 2,125, 000 1,080,000 0.31% 83.76 0.26% 77.28 0.28% 76.99 0.26% 71.12 0.22% 63.43 0.19% 59.29 0.17% 52.28 0.15% 45.67 0.04% 11.04 0.03% 6.98 0.01% 3.55 0.00% 0.00% 1 Refer to Demographic and Economic Statistics schedule on page 49 of the CAFR. Source: Current and prior year's financial statements. High Plains Library District Legal Debt Margin Calculation for Fiscal Year 2020 Assessment valuation Legal Debt Limit C.O.P Balance Legal Debit Margin $13,547,496,546 203,212,448 0 203,212,448 Legal Debt Margin Information Last Ten Fiscal Years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Debt limit $ 71,333,143 $ 86,294,415 $ 95,350,662 $125,437,455 $159,863,784 $123,496,081 $ 126,183,800 156,590,520 210,027,615.00 203,212,448.00 Total net debt applicable to limit 18,118,756 16,726,412 15,635,060 14,145,000 12,535,000 3,145,000 2,125,000 1,080,000 0 0 Legal debt margin $ 53,214,387 $ 69,568,003 $ 79,715,602 $111,292,455 $147,328,784 $120,351,081 $ 124,058,800 $ 155,510,520 $ 210,027,615 $ 203,212,448 Total net debt applicable to the limit as a percentage of debt limit 25.40% 19.38% 16.40% 11.28% 7.84% 2.55% 1.68% 0.69% 0.00% 0.00% Note: 'Debt Limitation: Under Section 22-42-104, Colorado Revised Statutes, 1973, the High Plains Library District may incur indebtedness of general District purposes in an amount not to exceed 1.5% of assessed valuation of all taxable property. 2 Certificates of Participation are not generally included as debt for purposes of calculating legal debt limit (Colorado Revised Statute 22-42-104). However, they are presented here to give the most conservative analysis of debt allowable that remains available. High Plains Library District Direct and Overlapping Governmental Activities Debt As of December 31, 2020 Jurisdiction Net General Obligation Bonded Debt Outstanding Percentage Applicable to Government' Amount Applicable to Government HPLD COP's Total Direct Debt Cities and Towns Schools Special Districts Total Overlapping Debt 250, 586,419 1,352,237,435 187,489,176 1,790,313,030 100.00% $ 22.00% 65.77% 76.36% 55,124,824 889, 344, 718 143,158,101 1,087,627,643 Total Direct and Overlapping Debt $1,790,313,030 $1,087,627,643 Source: Weld County CAFR Note: 1 Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the district. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by residents and businesses located within the district's boundries. This process recognizes that, when considering the district's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. High Plains Library District Demographic and Economic Statistics Last Ten Fiscal Years High Plains Library District Year Patron Population Weld County Population Total Personal Income ($ billions) Per Capita Income Unemployment Rate 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 236,815 240,898 245,989 251,308 257,157 259,688 268,307 270,901 280,771 298,361 254,759 263,691 263,691 269,785 274,487 284,876 296,397 304,435 314,305 331,895 6.93 7.76 8.35 8.35 8.35 8.35 11.20 12.50 14.50 15.30 27,186 25,233 29,986 31,657 27,047 42,787 42,701 44,080 46,172 50,198 9.10% 8.70% 6.70% 3.90% 3.80% 2.60% 3.40% 2.70% 2.30% 7.20% Source: Upstate Colorado in cooperation with the University of Northern Colorado and the State of Colorado demographic. Library Research Service State of Colorado for HPLD population. Weld County Comprehensive Annual Financial Report Note: The HPLD Patron population is shown as a comparative to the Weld County population as the District's service area approximates the boundary of Weld County. 49 High Plains Library District Principal Employers - Weld County December 31, 2020 2020 Percentage of Total County Employees Rank Employment JBS Swift Beef Company Banner Health: Northern Colorado Medical Center Vestas Greeley Evans School District 6 Weld County Government University of Northern Colorado State Farm Insurance Companies UC Health City of Greeley Halliburton Energy Services State of Colorado (includes UNC) Carestream Health, Inc. Aims Community College Total Principal Employers Other Employers Total County Employment Source: Upstate Colorado and Weld County 6,000 3,710 2,890 2,860 1,783 1,530 1,200 1,030 905 900 22,808 147,193 170,001 50 1 2 3 4 5 6 7 8 9 10 3.53% 2.18% 1.70% 1.68% 1.05% 0.90% 0.71% 0.61% 0.53% 0.53% 13.42% 86.58% 100.00% 2011 Percentage of Total County Employees Rank Employment 4,500 3,000 1,600 2,300 1 2 5 3 1,372 6 1,350 7 874 9 1,658 900 521 18,075 93,359 111,434 4 8 10 4.04% 2.69% 1.44% 2.06% 1.23% 1.21% 0.78% 1.49% 0.81% 0.47% 16.22% 83.78% 100.00% High Plains Library District Library Materials Purchased and Circulated Last Ten Fiscal Years Fiscal Number of Year Volumes Owned (1) Number of AudioNisual Total Items Items Owned (2) Owned Number of Items Circulated * 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 637,087 652,019 615,874 673,140 683,682 636,645 534,531 495,977 490,302 490,743 111,048 104,427 111,046 128,416 131,135 602,207 609,660 461,207 358,399 102,784 Source: High Plains Library District IT department. 748,135 756,446 726,920 801,556 814,817 1,238,852 1,144,191 957,184 879,317 593,527 2,761,638 2,746,572 2,879,953 2,749,021 2,781,499 2,640,378 2,555,135 2,420,158 2,275,342 1,490,905 Note: (1) Volumes include books, book club bags, new books, Paperbacks, Large Print, Kits, member books, new periodicals, periodicals, and references, and express books. (2) Audio/visual items include audio books, MP3, Blu-Ray, cassettes, CD's, DVD's, E -books, equipment, short check out equipment, software, member audio, member video, net library, recordings, and video cassettes. * The number of items circulated includes the HPLD seven branch locations; one mini branch location; two Outreach vehicles; Member Libraries - Eaton Public Library, Fort Lupton Public & School Library, Glenn A Jones, M.D. Memorial Library, Hudson Public Library, Northern Plains Public Library, Platteville Public Library, and Nantes Library. High Plains Library District Service Locations December 31, 2020 Square Number of Libraries Address Footage Employees Carbon Valley Regional Centennial Park Library Administration and Support Services building* Erie Community Farr Regional Library** Kersey Library Lincoln Park Library Riverside Library and Cultural Center 7 Park Avenue Firestone, CO 80504 35,400 23 2227 23rd Avenue Greeley, CO 80634 28,000 35 2650 W. 29th Street Greeley, CO 80631 28,903 60 400 Powers Street Erie, CO 80516 26,100 23 1939 61st Avenue Greeley, CO 80634 38,000 30 415 1st Street Kersey, CO 80644 800 1 I u 11z to btreet, suite B Greeley, CO 80631 6,195 21 3700 Golden Street Evans, CO 80620 18,500 19 * The Administration and Support Services building houses the administrative, collection resources and outreach department staff. ** The Virtual Library department consisting of 5 employees is located at the Farr Regional Library (FRL) and included in the number of employees listed for the FRL. This information is presented on an annual year end basis, to highlight the number of individual employees at each location and not FTE. N High Plains Library District Circulation Summary by Location Last Ten Fiscal Years RIVelauue LuUl al Fiscal Centennial Lincoln Year Carbon Valley' Park Erie 2 Farr Kersey 3 Park and Cultural Center 4 Outreach Services Total 2011 447,547 531,887 390,389 584,903 220,894 2012 442,864 598,032 408,498 556,127 247,896 2013 416,713 612,407 410,951 568,357 7,537 267,543 2014 382,228 558,494 394,962 550,391 11,090 234,827 2015 290,955 395,511 296,969 432,621 10,431 174,416 2016 272,125 399,477 281,932 405,275 7,917 97,700 2017 245,117 365,264 280,578 377,723 3,274 85,789 2018 229,604 308,229 279,100 341,960 1,840 69,682 2019 213,002 268,321 289,942 310,571 2,918 58,744 2020 114,024 112,769 163,866 155,271 2,567 20,537 59,341 2,234,961 64,949 2,318,366 62,786 2,346,294 24,519 68,480 2,224,991 123,496 79,522 1,803,921 106,282 89,766 1,660,474 104,204 96,240 1,558,189 86,623 93,980 1,411,018 74,959 97,919 1,316,376 29,084 74,223 672,341 Note: 1 The Carbon Valley Regional Library opened in March 2008. 2 Erie activity occurred at the Lorraine David Children's Library which ceased its operations with the Erie Community Library opening on January 12, 2008. 3 The Kersey mini -branch opened in late January 2013. The Kersey mini -branch was closed from late June 2017 to late December 2017 for mold m 4 The Riverside Library and Cultural Center opened October 18, 2014. During 2020, the libraries were closed for several weeks and subject to limited services because of COVID-19 restrictions. Source: High Plains Library District IT department. Hello