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HomeMy WebLinkAbout20202641.tiffRECEIVED JUN 082020 WELD COUNTY COMMISSIONERS ray igh �lams 1 Library District i 7• WELD COUNTY, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2019 ANdERSON WhITNEy ••••• Cot -Us -tun ccx -F; c0 n S OM, /2o Cc: cA(66 fsc), Fx CDw) 01/25/20 2020-2641 Ll000q High Plains Library District 2650 W. 29th Street Greeley, Colorado 80631 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the year ended December 31, 2019 Board of Trustees As of May 2020 Kenneth Poncelow Chairman Mary Heberlee Vice Chairman Mary Roberts Secretary/Treasurer Jana Caldwell Trustee John Damsma 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 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 20 Budgetary Comparison Statement — General Fund 24 Notes to Financial Statements 26 Other Supplementary Information: Budgetary Comparison Schedule: Debt Service Fund 38 STATISTICAL SECTION (Unaudited) Net Position by Component 41 Changes in Net Position 42 Fund Balances of Governmental Funds 43 Changes in Fund Balances, Governmental Funds 44 General Governmental Expenditures by Function 45 General Governmental Revenues by Source 46 Property Tax Levies and Collections 47 Assessed and Estimated Actual Value of Taxable Property 48 Principal Taxpayers 49 Ratio of Outstanding Debt by Type 50 Legal Debt Margin Calculation 51 Direct and Overlapping Governmental Activities Debt 52 Demographic and Economic Statistics 53 Principal Employers 54 Library Materials Purchased and Circulated 55 Service Locations 56 Circulation Summary by Location 57 A'AwA highDlains1 Library District To the Members of the Board of Trustees and Patrons of the High Plains Library District: Administration 2650 W. 29th Street Greeley CO 80681 Phone: (970) 506-8550 Fax: (970) 506-8551 May 6, 2020 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, 2019. 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, 2019 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 operates public computer centers (PCCs) located in Greeley and Evans and supports technology at PCCs located in Briggsdale„ Milliken, and Nunn. 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. Catboat Valley Rtµou;ti !Anal) • (", utt•tmial Park I , ,it,lt Librarti • 1';non Public I.ibrar% • hit ('<nnuttutity Iibt:u' • Fall R,ginmtl (Alan Fort Lupktn Public& Srhoo11Am:tn • (Avian A. ham,. \Ll). \Icutotral libr:u> • IIud.ott I'ubltt. Iil,rart • I.Iiw,,II] Park litautclt Lillian \or(lu- 1 Plains I'ubbc lilnar% • ( )tturarb• I'IaUetillc Tubb, Library i -.\1)• nt.\I l ilnatt,u. 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 is included as a blended component unit within the financial statements of the District. Administrative and support departments include Associate Directors, Collection Resources, Community Relations and Marketing, Executive Director, Facilities Services, Finance, Foundation, Human Resources, Information Technology, and 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 2020 through 2023. The trustees hold one 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 Boulder County and Weld 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, debt service fund, and when applicable the capital projects 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: The Colorado economy continued to grow during 2019 though not as rapidly as recent years. The Weld County economy continued to be one of the strongest in the state. The unemployment rate in Colorado remained low throughout 2019 with a reported unemployment rate of 3 percent in Weld County for December 2019. Inflation in Colorado was reported to be 1.9 percent in 2019. Economic activity continued during 2019. Oil and gas companies continued production in the Denver- Julesburg Basin which covers most of the High Plains Library District geographic area. The volume of oil and gas production in Weld County increased 9% and 20% in 2019. The volume of oil and gas sales in Weld County increased 6% and 18% in 2019. The price per barrel of oil decreased 12% in 2019. With that volume of production and sales and price level, we are currently expecting a 5% to 10% decrease in assessed valuation for fiscal year (collection year) 2021. The northern Colorado region's real estate market continued to be active. High employment supported the demand for housing and increased pressure to provide affordable housing. Housing prices continued to rise because of limited available housing inventory. The value of nonresidential projects continues to grow. Government facility construction projects have contributed to the nonresidential growth. Commercial construction has been active with retail and restaurant construction in the area. This, along with housing growth, has helped maintain steady growth in construction jobs for the region's labor market. -4 Growth in the county's labor market remained steady. A primary driver of recent growth has been oil and gas development. With the impact of the recession on Colorado's economy, the oil and gas industry's jobs and monetary contribution played a critical role in our recovery, and its importance today has not waned. The energy industry continues to be an enormous driver of the continued economic growth of Weld County and Colorado. The continued impact of oil and gas development in the county touches on many aspects of the High Plains Library District (HPLD) currently, and in planning for the future. The energy development presents both challenges and opportunities for HPLD. As has been the case for the last four to five years, growth and development activity directly, or indirectly, related to oil and gas exploration seems to be a main economic driver of positive economic activities in Weld County. During the last few years, the County has seen several compressor stations, injection wells, new pipelines, and other oil and gas support and service industries seeking permits. 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 communities. These regulatory risks, if implemented, could dramatically impact future oil and gas development in Colorado. 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. 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 2020 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 and over 63% for fiscal year 2020. Because of the volatility of production levels and price fluctuations of the oil and gas production, 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. In early 2020, the outbreak of the COVID-19 virus has severely impacted the economy. There has been a dramatically negative impact across numerous industries. A sharp, rapid decline in oil and gas prices has slowed production and investment. Travel and tourism have suffered dramatically as ski resorts were forced to close in early March. In early March, restaurants were forced to limit service to drive through, take out, or delivery. Entertainment venues have been forced to cancel events. Analysts are predicting very negative economic results, including a very large increase in unemployment, for the first and second quarters of 2020 with recovery beginning in 3rd and O1 quarters, but still not expecting recovery to 2019 levels by the end of 2020. Decrease in the oil and gas production and development and the significant decrease in price per barrel of oil in 2020 will have a negative financial impact to HPLD in 2022 and following depending upon the speed and extent of economic recovery. 5 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 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 2019 increased by $7,574,582 or 26%, compared to 2018. 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. Programming initiatives in 2019 included presenting the fourth annual Signature Author Series with Garth Stein author of The Art of Racing in the Rain. The event was held at the University of Northern Colorado and provided an opportunity for members of the community to have a question and answer session and book signing with the author. HPLD continued collaboration with the Immigrant and Refugee Center to provide citizenship and ESL classes. HPLD held its first YES! fest in September to encourage and celebrate STEM education. 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 (CAFR) for the fiscal year ended December 31, 2018. This was the seventeenth 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 CAFR 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 Natalie Wertz, CPA, CFE Executive Director Finance Manager 7 HIGH PLAINS LIBRARY DISTRICT PRINCIPAL DISTRICT OFFICIALS Dr. Matthew Hortt Executive Director Marjorie Elwood Associate Director of Public Services Rosa Granado Associate Director of Public Services Edward A. Brewer Patron Experience Specialist Elena Rosenfeld Community Engagement and Strategies Manager Eric Ewing Associate Director of Human Resources and Facilities James Melena Community Relations and Marketing Manager Abby Yeagle Foundation Director Vacant Collection Resources Manager Susan Staples Information Technology Manager Natalie Wertz Finance Manager Board or Trustees v Executive Assistantli _ Kathy Webb Executive Director Iii Matthew Horn High Plains Library District Organizational Chart Collection Resources Mang.. r Charles Krueger )oiit Campbc }1 Irterilbray Loan ar,d Norte; : t r S cren so r Lisa Wailers Jocclr_ Ibnd 7 kyr? ratty Mcpthann Ertmrr Patron Fax pericnce Specialist Tony Brewer r Community Relations and Marketing Mana_ r I M.r::tltri; snd l'r:. h:it Iz :t I. • u. ;s. Coalrat:.^.I ty Rc:+::o nt and Masked Lib aTian re Community Engagement & Strategies Manager Elena Rosenfeld Associate Director of Public Services f t. ,,,. Si I. ci . r. t:seT'k.eTt r Manager of IT & Innovation t i' 1 n sasnets:e Engirt Ca III 11IApp:i;atn.ni S:;AlalV1: I „Ma n Process 4: n Marv, :re . it ;3: Finance Manager Natalie WertzTir J I Associate Director of Human Resources Eric Ewing 1 lilt At)u ri Foundation Director 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, 2018 P2f.truA:a Executive Director/CEO ANdERSON WIUTNEy om••• 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, 2019, 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, 2019, 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 other supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the High Plains Library District. Such information is the responsibility of the management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory section and statistical tables 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. May 6, 2020 - 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, 2019. 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 $83.0 million at the end of 2019. Of this amount, approximately $47.8 million may be used to meet the District's ongoing obligations to patrons and creditors. The remaining $35.2 million are capital assets or are restricted by law. • The District's General Fund balance was $49,289,431 as of December 31, 2019. Of this amount, $1,004,893 is reserved for emergencies. • The 2019 General Fund balance is $10,945,516 higher than the previous year. The total fund balance is 189% of 2019 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 18-23 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 so, readers 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. High Plains Library District maintains two individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and Debt Service Fund. Individual fund data for the Debt Service Fund is provided in the form of a budget comparison schedule on page 38 of this report. The basic governmental fund financial statements can be found on pages 18 through 23 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 24 to 25 of this report. Budget to actual comparison for the Debt Service fund is provided on page 38. 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 26 through 37 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, 2019, net position was $83 million. The following table provides a summary of the District's net position at December 31: Table 1 - Net •osition in Millions Assets Current and other assets Casital assets Liabilities Current and other liabilities Lone -term liabilities Deferred Inflows Deferred Pro•ert Taxes Net Position Net Investment in capital assets Restricted Unrestricted, 2019 $95.6 34.2 2018 $74.5 33.2 1.2 5 2.3 5 45.0 34.2 1.0 47.8 33.9 31.2 1.8 38.0 -14- A significant portion of High Plains Library District's net position (58%) represents unrestricted net position of $47.0 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 (41%) 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 consists of the certificates of participation for the remodel of various facilities. High Plains Library District has no other debt. 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 2019 2018 Revenues: General revenues: Property and specific ownership taxes Investment earnings Program revenues: Charges for services Operating grants and contributions $ 35,821,303 $ 29,643,492 1,175,115 759,734 78,226 104,091 85,288 137,901 Total revenues 37,178,735 30,626,415 Expenses: Library services Operations and maintenance Depreciation Interest on long-term debt 20, 245, 525 17, 577, 047 3,633,708 3,124,153 1,247,557 1,288,601 90,056 122,906 Total expenses 25,216,846 22,112,707 Increase in net position Beginning net position 11,961,889 8,513,708 71,015,662 62,501,954 Ending net position $ 82,977,551 $ 71,015,662 Governmental activities Governmental activities increased High Plains Library District's net position by $11,961,889 in 2019. Expenses totaled a 14% 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 DISTRICTS 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 2019, the combined ending fund balance of High Plains Library District governmental funds was $49.3 million. Approximately 58% 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 $1,004,893. The District has two major governmental funds: 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 $49.3 million as of December 31, 2019. The 2019 fund balance is $11.0 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 110% of total 2019 expenditures and transfers out, while total fund balance is 189% of the same amount. The fund balance increased in 2019 as increased property taxes were more than the amounts transferred to the Debt Service Fund for debt repayment. 2. Debt Service Fund. The debt service fund has a fund balance of $0 due to the debt being repaid. 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 2018, the Board of Trustees appropriated $48.0 million for general fund expenditures and other financing uses, 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 from 2019, and expenditures held under budget. The budget was not amended during the year. Table in Millions Beeinnin• Fund Balance Revenue Expenditures and other financin• uses Endin• Fund Balance Bud et $ 38.3 36.6 48.0 Actual $ 38.3 37.2 26.2 -16- CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets: High Plains Library District's investment in capital assets for its governmental activities as of December 31, 2019 totals $34.2 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, 2019, High Plains Library District had $0 in outstanding debt as it was paid off during the year. Additional information on High Plains Library District's debt can be found in Note 5. 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 2020 budget: • HPLD budgeted revenues for fiscal year 2020 increased compared to 2019. The 2020 budget includes funds to address the future home site of the Lincoln Park Library, remodel and expand the Erie Library, and enhance the Kersey Library with a new building or upgrade an existing 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 increase by 31.1% in 2020 compared to 2019. Budgeted expenditures for 2020 include funding to meet the demands placed by our patrons for library materials as well as increased programing for all ages and just over $20.0 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, 2019 General Fund Debt Service Fund Total ASSETS Cash and Investments Receivables: Property taxes Other assets Capital Assets: Depreciable Nondepreciable $ 49,979,103 $ 45,043,922 552,638 - $ 49,979,103 - 45,043,922 - 552,638 Total Assets 95,575,663 95,575,663 LIABILITIES Accounts Payable Accrued Costs Unearned Revenue Long -Term Liabilities: Due after one year 690,862 439,836 111,612 690,862 439,836 111,612 Total Liabilities 1,242,310 1,242,310 DEFERRED INFLOWS OF RESOURCES Deferred Property Taxes FUND BALANCES/NET POSITION Fund Balances: Restricted for: Emergencies Assigned for capital projects Unassigned 45,043,922 1,004,893 19,584,220 28,700,318 45,043,922 1,004,893 19,584,220 28,700,318 Total Fund Balances 49,289,431 - 49,289,431 Total Liabilities and Fund Balances $ 95,575,663 $ - $ 95,575,663 Net Position: Net investment in capital assets Restricted for emergencies Unrestricted Total Net Position See Accompanying Notes to Financial Statements. -18- Adjustments Statement of (Note 10) Net Position $ - $ 49,979,103 - 45,043,922 552,638 30,585,922 30,585,922 3,643,871 3,643,871 34,229,793 129,805,456 690,862 - 439,836 111,612 541,673 541,673 541,673 1,783,983 45,043,922 (1,004,893) (19,584,220) (28,700,318) (49,289,431) 34,229,793 34,229,793 1,004,893 1,004,893 47,742,865 47,742,865 $ 82,977,551 $ 82,977,551 -19- HIGH PLAINS LIBRARY DISTRICT STATEMENT OF GOVERNMENTAL FUNDS REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCES/ STATEMENT OF ACTIVITIES Year Ended December 31, 2019 General Fund Debt Service Fund Total Revenue: General property taxes Specific ownership taxes Penalties and interest on delinquent taxes Library fines Earnings on investments Grant Miscellaneous $ 33,496,472 $ 2,324,831 15,553 62,673 1,151,723 94,288 9,803 - $ 33,496,472 - 2,324,831 23,392 15,553 62,673 1,175,115 94,288 9,803 Total Revenue 37,155,343 23,392 37,178,735 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 10,220,963 388,557 67,887 163,435 32,142 10,376 550,087 54,728 77,550 754,430 49,407 216,090 1,168,208 281,458 195,447 500,808 978,558 13,466 1,913 70,617 323,511 7,730,409 10,220,963 388,557 67,887 163,435 32,142 10,376 550,087 54,728 77,550 754,430 49,407 216,090 1,168,208 281,458 195,447 500,808 978,558 13,466 1,913 70,617 323,511 7,730,409 Total Current 23,850,047 - 23,850,047 Continued on next page. -20- Adjustments Statement of (Note 11) Activities $ - $ 33,496,472 - 2,324,831 15,553 62,673 1,175,115 94,288 9,803 37,178,735 29,186 10,250,149 388,557 67,887 163,435 - 32,142 10,376 550,087 - 54,728 77,550 - 754,430 - 49,407 216,090 1,168,208 281,458 - 195,447 - 500,808 - 978,558 13,466 1,913 70,617 323,511 7,730,409 1,247,557 1,247,557 1,276,743 25,126,790 -21- HIGH PLAINS LIBRARY DISTRICT STATEMENT OF GOVERNMENTAL FUNDS REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCES/ STATEMENT OF ACTIVITIES Continued Year Ended December 31, 2019 General Fund Debt Service Fund Total Expenditures/Expenses - Continued: Capital Outlay Debt Service: Principal Interest and Fees $ 2,236,239 $ - $ 2,236,239 1,080,000 - 32,400 1,080,000 32,400 Total Expenditures/Expenses 26,086,286 1,112,400 27,198,686 Revenue Over (Under) Expenditures Other Financing Sources (Uses): Transfers - internal activities 11,069,057 (123,541) (1,089,008) 9,980,049 123,541 Net Change in Fund Balances/Net Position Fund Balances/Net Position, Beginning of Yea] 10,945,516 38,343,915 (965,467) 965,467 9,980,049 39,309,382 Fund Balances/Net Position, End of Year $ 49,289,431 $ $ 49,289,431 See Accompanying Notes to Financial Statements. -22- Adjustments Statement of (Note 11) Activities $ (2,236,239) $ (1,080,000) 57,656 90,056 (1,981,840) 25,216,846 1,981,840 11,961,889 1,981,840 11,961,889 31,706,280 71,015,662 $ 33,688,120 $ 82,977,551 -23- HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON STATEMENT - GENERAL FUND Year Ended December 31, 2019 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 $ 33,496,472 2,324,831 15,553 94,288 62,673 1,151,723 9,803 $ 33,948,824 2,380,766 62,591 60,000 190,000 15,600 8,000 $ (452,352) (55,935) 15,553 31,697 2,673 961,723 (15,600) 1,803 Total Revenue 37,155,343 36,665,781 489,562 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) 10,220,963 388,557 67,887 163,435 32,142 10,376 550,087 54,728 77,550 754,430 49,407 216,090 1,168,208 281,458 195,447 500,808 978,558 13,466 1,913 70,617 323,511 7,730,409 11,859,189 433,250 95,561 276,010 39,725 19,400 574,500 55,000 96,310 931,000 57,850 253,585 1,149,213 228,752 188,960 544,850 834,418 18,639 3,850 75,000 15,610 318,121 7,641,625 1,638,226 44,693 27,674 112,575 7,583 9,024 24,413 272 18,760 176,570 8,443 37,495 (18,995) (52,706) (6,487) 44,042 (144,140) 5,173 1,937 4,383 15,610 (5,390) (88,784) Total Current 23,850,047 25,710,418 1,860,371 Capital Outlay 2,236,239 22,269,100 20,032,861 Total Expenditures 26,086,286 47,979,518 21,893,232 Continued on next page. -24- HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON STATEMENT - GENERAL FUND - Continued Year Ended December 31, 2019 Original and Final Actual Budget Variance Revenue Over Expenditures Other Financing Sources (Uses): Transfer to Debt Service Fund $ 11,069,057 $ (11,313,737) $ 22,382,794 (123,541) (165,000) 41,459 Excess of Revenue Over Expenditures and Other Financing Sources (Uses) Fund Balance - Beginning 10,945,516 (11,478,737) 22,424,253 38,343,915 38,343,915 Fund Balance - Ending $ 49,289,431 $ 26,865,178 $ 22,424,253 See Accompanying Notes to Financial Statements. -25- 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. - 26 - 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 funds: 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. The debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term debt of the District. 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: - 27 - 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, 2019 are $1,004,893. 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. - 28 - 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, 2019, levies for the general fund of the District are as follows: Mill Levy Amount General Fund 3.249 $ 33,948,824 Property tax revenue is reported net of approximately $707,000 of property tax abatements for the year ended December 31, 2019. Numerous tax increment financing districts have been established by municipalities in the District. - 29 - 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. - 30 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 2 - Cash and Investments - Continued: At December 31, 2019, the Library District held General Fund investments of $26,114,130 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, 2019 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, 2019, the Library District held general fund investments of $10,170,304 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, 2019 CSIP had a weighted average maturity of 44 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, 2019 are as follows: Cost Fair Value U.S. Government Treasury and Sponsored Agency Bonds, primarily FNMA, FFCB, and FHLB, maturing in 2020 through 2022, rated AA+ by Standard & Poor's $ 12,000,000 $ 12,059,432 Corporate Bonds — maturing in 2022, rated Aa1 and Aa3 1,000,000 1,022,421 Total $ 13,000,000 $ 13,081,853 -31 - 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, 2019 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) $ 13,081,853 1,022,421 - 32 - 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, 2019 Amount Town of: Ault Eaton Fort Lupton Hudson Johnstown Platteville $ 397,107 949,266 2,808,635 2,124,281 713,748 737,372 $ 7,730,409 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. - 33 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 4 — Capital Assets: Capital asset activity for the year ended December 31, 2019 was as follows: Balance, Deletions/ Balance, 01/01/19 Additions Transfers 12/31/19 Not Depreciated: Land Opening day book collection Construction in process Depreciated: Buildings Building improvements Equipment and furniture $ 716,670 $ 2,927,201 33,691,101 4,640,602 4,375,580 -- $ -- $ 716,670 500,033 1,269,561 72,092 394,553 2,927,201 500,033 34,960,662 4,712,694 4,770,133 Total Cost 46,351,154 2,236,239 48,587,393 Less Accumulated Depreciation: Buildings Building improvements Equipment and furniture 7,712,633 1,659,869 3,737,541 743,679 243,664 260,214 8,456,312 1,903,533 3,997,755 Total Accumulated Depreciation 13,110,043 1,247,557 -- 14,357,600 Capital Assets, net $ 33,241,111 $ 988,682 $ -- $ 34,229,793 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 01/01/19 Additions Deletions 12/31/19 One Year Refunding Certificates of Participation — 2010 Compensated Absences $ 1,080,000 $ -- $1,080,000 $ $ 512,488 71,499 42,314 541,673 20,000 $ 1,592,488 $ 71,499 $1,122,314 $ 541,673 $ 20,000 - 34 - 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. The District entered into a lease with Goodwill Industries of Denver in May 2016 for a temporary location for the Lincoln Park branch in downtown Greeley. The lease ended in June 2018 when the District purchased the building. 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 $1,004,893 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. - 35 - 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 2019, employees contributed $397,242 and the District contributed $397,242 to the plan. The amount payable to the plan at December 31, 2019 was $37,896. 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 2019 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 $ 49,289,431 34,229,793 (541,673) Total Net Position $ 82,977,551 - 36 - 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 2019 Net change in fund balances — total governmental funds $ 9,980,049 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 ($2,236,239) was more than depreciation ($1,247,557) in the current year. 988,682 The issuance of long-term debt (e.g. COP's) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of deferred amounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. 1,022,344 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 (29,186) Change in Net Position of Governmental Activities $ 11,961,889 - 37 - HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND Year Ended December 31, 2019 Original and Final Actual Budget Variance Revenue: Earnings on investments $ 23,392 $ 600 $ 22,792 Total Revenue 23,392 600 22,792 Expenditures: Debt service 1,112,400 1,123,400 11,000 Total Expenditures 1,112,400 1,123,400 11,000 Revenue Under Expenditures Other Financing Sources (Uses): Transfer from General Fund (1,089,008) (1,122,800) 33,792 123,541 165,000 (41,459) Revenue and Other Financing Sources Over Expenditures Fund Balance - Beginning (965,467) (957,800) (7,667) 965,467 957,800 7,667 Fund Balance - Ending -38- STATISTICAL SECTION - 39 - 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... ... ... ... .....47-49 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.................................50-52 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... ... ... ... ... ...... ............ ........................ ......... ....... .53-54 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... ... ... ... ... ... ... ... ... ... ... 55-57 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. - 40 - High Plains Library District Net Position by Component Last Ten Years (accrual basis of accounting) Governmental activities Invested in capital assets, net of related debt Restricted for Debt service Emergencies Unrestricted Total governmental activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net position A 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $ 12,011,872 $ 12,298,749 $ 13,537,209 $ 15,481,507 $ 22,620,113 $ 22,839,391 $ 31,182,064 $ 30,931,304 957,200 872,179 29,741,271 916,009 929,937 930,828 931,956 933,107 934,901 956,155 555,749 449,770 515,291 598,917 684,707 862,082 1,123,404 12,658,266 13,109,042 13,360,265 14,596,825 11,910,752 18,464,841 21,298,931 $ 31,173, 769 965,467 824,477 38,051,949 $ 34,229,793 1,004,893 47,742,865 12,011,872 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 1,471,758 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 12,658,266 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 $ 26,141,896 $ 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 High Plains Library District Changes in Net Position Last Ten Years (accrual basis of accounting) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Expenses Governmental activities: General government Interest on long term debt Debt issuance costs Total governmental activities expenses $ 14,544,604 $ 13,607,335 $ 15,346,468 $ 16,840,316 $ 18,129,352 $ 21,711,526 $ 25,922,845 $ 21,448,708 $ 21,989,801 $ 25,126,790 772,337 734,515 704,412 665,007 622,536 580,418 519,145 141,872 122,906 90,056 - 14,389 14,389 - - - $ 15,316,941 $ 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 Program Revenues Governmental activities: Charges for services: General government 197,986 178,005 201,749 176,750 174,026 156,912 101,381 89,100 85,288 62,673 Operating grants and contributions 138,750 113,750 126,248 185,227 137,247 192,479 122,808 76,675 137,901 119,644 Total governmental activities program revenues $ 336,736 $ 291,755 $ 327,997 $ 361,977 $ 311,273 $ 349,391 $ 224,189 $ 165,775 $ 223,189 $ 182,317 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 Position Governmental activities Total primary government $(14,980,205) $(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) $ 16,906,588 $ 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 1,044,416 979,076 1,280,320 1,298,477 1,784,930 1,854,124 2,223,890 2,125,055 2,128,161 2,324,831 238,444 128,210 163,788 167,822 146,285 159,022 214,921 279,300 792,460 1,175,115 18,189,448 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 $ 18,189,448 $ 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 $ 3,209,243 $ 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 $ 3,209,243 $ 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 High Plains Library District Fund Balances of Governmental Funds Last Ten Years (modified accrual basis of accounting) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Restricted $ 555,749 $ 449,770 $ 515,291 $ 598,917 $ 684,707 $ 862,082 $ 1,123,404 $ 872,179 $ 824,477 $ 1,004,893 Unrestricted, unassigned 12,800,520 13,278,254 13,541,761 14,250,893 12,287,812 13,710,589 16,348,874 22,850,568 15,710,138 28,700,318 Assigned - 5,170,000 5,427,000 7,977,350 21,809,300 19,584,220 Total general fund $13,356,269 $13,728,024 $14,057,052 $14,849,810 $12,972,519 $19,742,671 $ 22,899,278 $ 31,700,097 $ 38,343,915 $ 49,289,431 All other Governmental Funds Restricted $ 1,435,069 $ 929,965 $ 930,828 $ 931,956 $ 933,107 $ 934,901 $ 956,155 $ 957,200 $ 965,467 $ - Total for all governmental funds $ 14,791,338 $ 14,657,989 $ 14,987,880 $ 15,781,766 $ 13,905,626 $ 20,677,572 $ 23,855,433 $ 32,657,297 $ 39,309,382 $ 49,289,431 A W High Plains Library District Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenues Taxes $ 17,951,004 $ 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 Charges for services 23,787 21,504 25,106 - Library fines 170,724 154,588 168,188 167,834 174,026 156,912 101,381 89,100 85,288 62,673 Earnings on investments 238,444 128,210 163,788 167,822 146,285 159,022 214,921 279,300 792,460 1,175,115 Contributions in kind - rent 113,750 113,750 113,750 113,750 113,750 113,750 47,395 - - Miscellaneous 28,475 1,913 20,955 80,393 33,714 64,485 75,413 76,675 137,901 119,644 Total revenues 18,526,184 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 Expenditures General government 13,602,384 12,573,567 14,237,613 15,651,701 16,982,271 20,271,134 24,501,391 20,156,867 20,675,360 23,850,047 Capital outlay 1,049,190 479,764 957,104 2,323,740 6,090,351 108,638 370,588 70,531 1,588,270 2,236,239 Debt issuance costs 129,523 - - - - Debt service Interest 772,337 676,859 646,756 607,351 564,880 522,762 461,489 82,716 65,250 32,400 Principal 1,235,000 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 Total expenditures 16,788,434 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 Excess of revenues over (under) expenditures 1,737,750 (133,349) 329,891 793,886 (1,876,140) 6,771,946 3,177,889 8,201,866 7,252,535 9,980,049 Other financing sources (uses) Transfers in 1,993,701 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 Transfers out (1,993,701) (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) Proceeds of debt 9,580,000 - Payment to refunded debt escrow agent (8,293,903) Sale of capital assets - - Total other financing sources (uses) 1,286,097 Net change in fund balances $ 3,023,847 $ (133,349) $ 329,891 $ 793,886 $ (1,876,140) $ 6,771,946 $ 3,177,889 $ 8,201,866 $ 7,252,535 $ 9,980,049 Debt service as a percentage of noncapital expenditures 12.75% 14.21% 12.84% 11.84% 10.98% 9.36% 28.68% 5.19% 5.10% 4.46% High Plains Library District General Governmental Expenditures By Function Last Ten Fiscal Years Fiscal Year Administrative Books; Salaries Benefits Services Resources Facilities Operations Grants In Aid Capital Outlay Debt Service Totals 2010 2011 2012 2013 20141 2015 20162 2017 2018 2019 Note: $ 4,993,005 4,972,908 5,334,425 5,644,619 6,120,836 6,724,535 7,127,174 6,928,292 7,238,335 7,810,132 $1,256,554 1,270,033 1,389,422 1,306,285 1,675,209 1,971,410 2,041,965 2,014,659 2,164,073 2,410,831 $ 1,498,585 1,691,690 1,772,378 2,056,482 1,780,284 2,006,234 2,632,139 2,291,142 2,387,221 2,690,406 $ 1,253,838 1,056,746 1,239,946 1,248,730 1,238,798 1,633,200 1,652,204 1,117,897 1,192,694 1,408,652 $ 1,168,945 996,174 1,272,936 1,315,355 1,598,867 1,406,582 1,609,406 1,577,637 1,610,030 1,799,617 $ 3,431,457 2,586,016 3,228,506 4,080,230 4,577,277 6,529,173 9,438,503 6,227,241 6,083,007 7,730,409 $ 1,049,190 479,764 957,104 2,323,740 6,090,351 108,638 370,588 70,530 1,588,720 2,236,239 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. $ 2,136,860 2,081,859 2,096,756 2,102,351 2,094,880 2,092,762 9,851,489 1,102,716 1,110,250 1,112,400 $ 16,788,434 15,135,190 17,291,473 20,077,792 25,176,502 22,472,534 34,723,468 21,330,114 23,374,330 27,198,686 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 2010 $16,874,455 $1,044,416 $ 238,444 2011 13,602,800 979,076 128,210 2012 15,849,259 1,280,320 163,788 2013 19,043,402 1,298,477 167,822 2014 21,038,657 1,784,930 146,285 2015 26,881,943 1,854,124 159,022 2016 35,238,427 2,223,820 214,921 2017 26,961,850 2,125,055 279,300 2018 27, 515, 331 2,128,161 738,244 2019 33,496,472 2,324,831 1,175,115 Source: HPLD CAFR $ 25,000 $ 170,724 $ 173,145 $18,526,184 - 154,588 137,167 15,001,841 12,498 168,186 147,313 17,621, 364 71,477 167,834 122,666 20,871,678 16,302 174,026 131,162 23,291,362 55,436 156,912 137,043 29,244,480 60,836 101,381 61,972 37,901,357 65,578 89,100 11,097 29,531,980 62,302 85,288 75,599 30,604,925 94,288 62,673 25,356 37,178,735 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 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 Source: 1 Final Budget 2 YTD Treasurer's Tax Distribution 3 Not available for years not shown 16,934 13,609 15,880 19,074 21,063 27,320 35,255 26,930 27,390 33,949 16,874 13,581 15,832 19,023 21,038 26,882 35,223 26,962 27,515 33,870 99.6% 99.8% 99.7% 99.7% 99.9% 98.4% 99.9% 100.1% 100.5% 99.8% 60 16,934 100.0% - 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% 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 2010 76,597 935,623 612,171 191,689 93,792 11,881 1,593,865 573,725 4,089,343 19,166,061 3.249 21.336% 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% Source: Weld County Assessor's office High Plains Library District Principal Taxpayers December 31, 2019 2019 Taxable Assessed Value Percentage of Total Taxable Assessed Rank Value Kerr-Mcgee Oil & Gas Onshore LP Noble Energy Inc. Encana Oil & Gas (USA) Inc PDC Energy Inc Extraction Oil & Gas LLC Crestone Peak Resources, LP Highpoint Operating Corporation SRC Energy Inc. Whiting Oil and Gas Bonanza Creek Energy Inc. Great Western Oil & Gas Co LLC Rocky Mountain Energy Center Public Service Company of Colorado (Xcel) Colorado Interstate Gas Co. Kerr-McGee Gathering LLC Petroleum Development Corp. Merit Energy DCP Midstream LP Source: Weld County Assessor $ 2,495,933,180 1 1,678,837,020 1,204,386,250 550,573,520 548,413,490 543,650,140 479,679,550 342,550,680 271,755,400 270,072,220 $ 8,385,851,450 17.74% 2 11.93% 3 4 5 6 7 8 9 10 8.56% 3.91% 3.90% 3.86% 3.41% 2.43% 1.93% 1.92% 2010 Taxable Assessed Value Percentage of Total Taxable Assessed Rank Value $ 454,815,910 720,128,640 126,332,820 2 1 3 123,154,770 4 109,467,550 5 66,745,500 6 56,192,010 7 55,180,600 8 50,342,200 9 38,338,500 10 59.61% $1,800,698,500 11.38% 18.02% 3.16% 3.08% 2.74% 1.67% 1.41% 1.38% 1.26% 0.96% 45.05% High Plains Library District Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Actitivities Percentage of Fiscal Certificates of Total Library Personal Year Participation District Income 1 Per Capita 1 2009 19,415,000 19,415,000 0.26% 77.28 2010 19,466,100 19,466,100 0.28% 76.99 2011 18,118,756 18,118,756 0.26% 71.12 2012 16,726,412 16,726,412 0.22% 63A3 2013 15,635,000 15,635,000 0.19% 59.29 2014 14,105,000 14,105,000 0.17% 52.28 2015 12,535,000 12,535,000 0.15% 45.67 2016 3,145,000 3,145,000 0.04% 11.04 2017 2,125,000 2,125,000 0.03% 6.98 2018 1,080,000 1,080,000 0.01% 3.55 2019 0.00% 1 Refer to Demographic and Economic Statistics schedule on page 52 of the CAFR. Note: Details regarding the district's outstanding debt can be found in FN 5 page 32 of the CAFR. Source: Current and prior year's financial statements. in 9 High Plains Library District Legal Debt Margin Calculation for Fiscal Year 2019 Assessed Valuation Debt Limit 1.5% of Assessed Value 1 $14,001,840,969 210,027,615 Certificates of Participation 2 0 Legal Debt Margin 210,027,615 Legal Debt Margin Information Last Ten Fiscal Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Debt limit $ 60,781,581 $ 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 Total net debt applicable to limit 19,466,100 18,118,756 16,726,412 15,635,060 14,145,000 12,535,000 3,145,000 2,125,000 1,080,000 Legal debt margin $ 41,315,481 $ 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 Total net debt applicable to the limit as a percentage of debt limit 32.03% 25.40% 19.38% 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. 16.40% 11.28% 7.84% 2.55% 1.68% 0.69% 0.00% High Plains Library District Direct and Overlapping Governmental Activities Debt As of December 31, 2019 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 40,381,417 1,428,659,275 113,087,525 1,582,128,217 100.00% $ 88.91% 57.05% 55.69% 35,901,417 815,115,751 62,981,071 913,998,239 Total Direct and Overlapping Debt $1,582,128,217 $ 913,998,239 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 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 235,511 236,815 240,898 245,989 251,308 257,157 259,688 268,307 270,901 280,771 252,825 254,759 263,691 263,691 269,785 274,487 284,876 296,397 304,435 314,305 7.07 6.93 7.76 8.35 8.35 8.35 8.35 11.20 12.50 14.50 28,503 27,186 25,233 29,986 31,657 27,047 42,787 42,701 44,080 46,172 9.80% 9.10% 8.70% 6.70% 3.90% 3.80% 2.60% 3.40% 2.70% 2.30% 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. 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. High Plains Library District Principal Employers - Weld County December 31, 2019 2019 Percentage of Total County Employees Rank Employment JBS Swift Beef Company Banner Health: Northern Colorado Medical Cente Vestas Greeley Evans School District 6 University of Northern Colorado Weld County Government State Farm Insurance Companies City of Greeley Halliburton Energy Services Inc. UC Health State of Colorado (includes UNC) Carestream Health, Inc. Aims Community College Total Principal Employers Other Employers Total County Employment 4,590 3,640 2,810 2,200 1,717 1,615 1,200 1,100 1,030 1,030 20,932 144,358 165,290 Combined State of Colorado (including UNC) not available for 2019 Source: Upstate Colorado and Weld County 1 2 3 4 5 6 7 8 9 10 2.78% 2.20% 1.70% 1.33% 1.04% 0.98% 0.73% 0.67% 0.62% 0.62% 12.66% 87.34% 100.00% 2010 Employees Percentage of Total County Rank Employment 4,500 2,141 1,060 1,877 1,372 1,300 847 1,600 540 874 16,111 102,087 118,198 1 2 7 3 3.81% 1.81% 0.90% 1.59% 5 1.16% 6 1.10% 9 0.72% 4 10 8 1.35% 0.46% 0.74% 13.63% 86.37% 100.00% High Plains Library District Library Materials Purchased and Circulated Last Ten Fiscal Years Fiscal Number of Year Volumes Owned (1) Number of Audio/Visual Total Items Items Owned (2) Owned Number of Items Circulated * 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 613,815 637,087 652,019 615,874 673,140 683,682 636,645 534,531 495,977 490,302 111,641 111,048 104,427 111,046 128,416 131,135 602,207 609,660 461,207 358,399 Source: High Plains Library District IT department. 725,456 748,135 756,446 726,920 801,556 814,817 1,238,852 1,144,191 957,184 879,317 2,774,312 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 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, 2019 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 23,903 60 400 Powers Street Erie, CO 80516 20,000 23 1939 61st Avenue Greeley, CO 80634 38,000 30 415 1st Street Kersey, CO 80644 800 1 1012 11th Street, 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. High Plains Library District Circulation Summary by Location Last Ten Fiscal Years r uveI,.ue LIUI C11y Fiscal Centennial Lincoln Year Carbon Valley I Park Erie 2 Farr Kersey 3 Park and Cultural Center 4 Outreach Services Total 2010 460,549 544,937 394,194 633,278 210,738 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 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 WSrie 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 mitigation. 4 The Riverside Library and Cultural Center opened October 18, 2014. Source: High Plains Library District IT department. 63,808 2,307,504 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 Hello