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HomeMy WebLinkAbout20181633.tiffRECEIVED MAY 2 2 2018 COMMISSIONERS highniains 1Library District WELD COUNTY, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT • 7 • YEAR ENDED DECEMBER 31, 2017 o► in-1on;co -f;ans 05-30-1$ CA-01.616C), Fi Cow) os-aa-tg ANdIErsoN 21Wh1TNEy 2018-1633 L 10001 High Plains Library District 2650 W. 29th Street Greeley, Colorado 80631 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the year ended December 31, 2017 Board of Trustees Kenneth Poncelow Mary Heberlee Bob Grand George Conger John Damsma Rosalie Martinez Joyce Smock Executive Director Dr. Matthew Hortt Chairman Vice Chairman Secretary/Treasurer Trustee Trustee Trustee Trustee Interim Executive Director/Associate Director of Branch Services Edward A. Brewer Associate Director for Community Engagement Elena Rosenfeld Prepared by: Natalie Wertz Finance Manager 1 PAGE OF DOCUMENT TABLE OF CONTENTS INCLUDED IN PAPER FILE. REMAINDER RETAINED INTRODUCTORY SECTION ELECTRONICALLY IN TYLER. Letter of Transmittal 3 Principal District Officials 8 Organizational Chart 9 Certificate of Achievement 10 FINANCIAL SECTION Independent Auditors' Report11 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 Calculation51 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 hiohD1ains ...Library District Administration 2650 W. 291bStreet Greeley CO 80631 Phone: (970) 506-8550 Fax: (970) 506-8551 May 21, 2018 To the Members of the Board of Trustees and Patrons of the High Plains Library District: 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, 2017. 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, 2017 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 two 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 Lochbuie, 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. CORM ' allieN lit glom' I • ( ,.utcntnal York lit:tett h I.thr:rrs, • F.at,nr Ptd,liu I ilrr,Trm • Inc C'orurnt TutsIshntr, • htrr Retrial Library I',,n I nlrtnn I'ul,Iu k G ht.,' I ,I,,an • (.Iruu .'t J!,,n.. \I I) \I,-nn,nal I ihra,, •F hub, nt I'uhlt, Li1N:as • 1.inndu I'xtk 11:3111)1lihnns \nth, r,, Plum Puhit, LiM.,r: • ( iuirr.0 It • I'I,,H, II, Puhhr I thr., I -$I' .(tiI.1IIAUvitt tt.\I4lAhtat1.tl• 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 two board members having terms expiring at the end of each year from 2018 to 2020 and one at the end of 2021. The trustees hold two meetings 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 improved during 2017 with continued growth projected for 2018. The Weld County economy continues to be one of the strongest in the state. The unemployment rate in Colorado remained low throughout 2017 with a reported unemployment rate of 3.4 percent in Weld County for December 2017. Inflation in Colorado was reported to be 3.1 percent in 2017. Inflationary pressures may increase with continued high employment rates. Economic activity continued to gain momentum in 2017. Growth was limited in 2017, but improvements occurred in major sectors of the economy, particularly construction and oil and gas. Oil and gas companies continue to invest in the Denver-Julesburg Basin which covers most of the High Plains Library District geographic area. Record levels of oil production were reached in 2017. Oil production is expected to increase up to 10% in 2018. The northern Colorado region's real estate market continues to be active. High employment has supported the demand for housing and increased pressure to provide affordable housing. While prices are projected to continue to rise in 2018 because of limited available housing inventory, growth may be tempered as increasing interest rates may dampen the market. The value of nonresidential projects continues to grow. Government facility construction and medical facility construction have contributed to the nonresidential growth. Commercial construction has been active with hotel, retail, and restaurant construction in the area. This, along with housing growth, has also helped maintain steady growth in construction jobs for the region's labor market. 4 Growth in the county's labor market remains 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 industry continues to be an enormous driver to recovery from the recent recession and to 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 more 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, Weld County agricultural production has been the highest in the state and among the highest in the nation. Agricultural production continues to be a significant 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 is expected to open in late 2018. At opening, the plant is expected to cost $200 million and employ 250 workers. As the High Plains Library District looks to 2018 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 fifty-four percent of the District's total assessed valuation for fiscal year 2017. However, oil and gas production comprised over sixty-six percent of the District's total assessed valuation for fiscal year 2016. The District's total valuation for fiscal year 2017 decreased approximately twenty-two percent from the 2016 assessed values. 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 bi-annual budget preparation. Although the financial health of the HPLD is currently excellent, it is important to look to the future issues, possible problems and alternative solutions to these problems. Besides the traditional role of budgeting to responsibly manage available current year funding, there must be a continued emphasis on long-term planning, recognition of the cumulative effect of individual decisions, an awareness of changing realities, flexibility, patron input in setting priorities, and a focus of goals and objectives consistent with the core 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 bi-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. 5 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 2017 decreased by approximately $8,6 million or 23%, compared to 2016. This required the District to institute a temporary hiring freeze and decrease its spending allocation for library materials and information technology. During April 2014 Towns of Ault, Eaton and Hudson, the City of Fort Lupton, RE8 School District in Fort Lupton, and the Weld County Commissioners, founding parties of the Weld Library District (WLD) (now known as the High Plains Library District (HPLD)), approved respective resolutions, except for the City of Greeley and Evans, to remove all existing High Plains Library District Board of Trustee members and approved appointment of nominees for the vacant positions. This all stemmed from the members stating that the HPLD Board of Trustees was not honoring the three conditions that were guaranteed by the creating documents.1) Municipal retention of the title to their library property, 2) Continuation of local boards of library trustees to insure local control, and 3) The sharing of the library -related mill levies through 2/3-1/3 allocation of the property tax generated from the service area of the municipal libraries. The HPLD Trustees brought suit seeking Declaratory Judgment and Injunctive Relief, granted by the District Court of Weld County, Colorado, as necessary and the only relief available under the law at this time. The board was prohibited from entering into any new contracts without full agreement of all parties involved in the action, or without written Court approval if no agreement could be reached. By court order, the board was authorized to continue implementation of policies or procedures previously adopted, but was not authorized to begin any new projects, or adopt new policies without approval. In April 2016, the Colorado Supreme Court denied the Defendants' request to hear an appeal to the case. The case was resolved by a settlement agreement between the parties that was approved in February 2017. As a result of the settlement agreement, six new board members were selected by the nominating committee and were subsequently ratified by the founding parties. The six new board members assumed their seats on the board in June 2017. Janine Reid, Executive Director, retired effective September 1, 2017. Edward A. Brewer, Associate Director of Branch Services, was appointed Interim Executive Director. The board hired an executive recruiting firm. The search for the next Executive Director began in October 2017. In February 2018, the board selected Dr. Matthew Hortt as the next Executive Director of High Plains Library District. Dr. Hortt began his work with HPLD in April 2018. Programming initiatives in 2017 included the second annual Signature Author Series with Jodi Picoult, the Teen Tour Event with Joaquin Zihuatanejo, a Poetry Slam for National Coming Out Day, and the Discover Health Exhibit. HPLD continued collaboration with the Immigrant and Refugee Center to provide citizenship and ESL classes. Collection Resource initiatives included implementing Prospector which gives patrons free access to over 30 million collection items from Prospector member libraries located in Colorado and Wyoming. Prospector allows patrons to request items directly from another library instead of using the Interlibrary Loan process. Collection Resources added 400 Launchpads to the collection that are preloaded with applications to improve reading skills and increase reading comprehension. HPLD also implemented a specialty checkout program that allows patrons to reserve laptops, projectors, telescopes, mobile internet hotspots, and State Park Passes for checkout. 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, 2016. This was the fifteenth 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, 2, 9Y--- 1\3 LasLcv-E.- Dr. Matthew Hortt Natalie Wertz, CPA, CFE Executive Director Finance Manager 7 HIGH PLAINS LIBRARY DISTRICT PRINCIPAL DISTRICT OFFICIALS Dr. Matthew Hortt Executive Director Edward A. Brewer Associate Director of Branch Services Elena Rosenfeld Associate Director of Community Engagement Eric Ewing Associate Director of Human Resources and Facilities Kelli Johnson Community Relations and Marketing Manager Abby Yeagle Interim Foundation Director Terri Spaulding Collection Resources Manager Susan Staples Information Technology Manager Natalie Wertz Finance Manager 8 Collection Resources Manager Materials Clerk {11.11 ti`Law*. Sarah Romero I Ic.i \Natters Terri Spaulding ;:y Acquisitions ns •r i..+i hit'gluon I'inlet I nub .Rtlgc Coflc ctiotiResources Librarians w` 1taxott 1 I.ir 1-{(81''41 t tiilhics I jai Ielltltu% 1 Klima 11,lutnt i )illital l'ollcci ion s librarian ignite• I .:et I Pctei it Associate Director of Community En as _ erileilt Community 1'.iift.114'n t'lit 1t t' 111111111itr`. I ta' .i''c 111;•Ill 1. Cult t Associate Director of Branch Services Tony Brewer 1 (' Manch Services 4."c.i' ittaticii "+'r wa.a { iti: the es i, l'Lcpkc.r Lin Manager of IT & Innovation Susan Staples 11 InuhI%inicturt' Lngineeis Mikc Ihtigct itrfilltk t .Slillbl.dit 11 I cclinicuth INQ.LiL tis1 `with it I iii Moon \•ttuvuelul i JI.11:.tnsi I guar,. I'r:t I1itoi matl!111 ;\1ari igctit 'nt ti1'c•c'tallil li,tit,1'1°.t€itltt-11 Iwo High Plains Library District Organizational Chart Finance Manager Natalie Wertz At, •'•nl€tlit Ice.?t1ii gill i 4 itrtwMl omit:mkt Associate Director of Human Resources and Facilities Eric Ewing 1''ilcllilii's Supervisor l;cily Ft1'eltrinw Sheryl I' i sher I. Walk) IYlalsnnci Custodial S1.111 I I1t Asst`t:ait,. 1111 Generalist I(is41' s-1Iintrniin M.1lk'reit'.W!_ Uit Foundation Director Ros. wlle Mitchell -NI tiler I)tReio 'tllt'ili ;\r,',iti1<tnt Atkin I.E.tilr 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, 2016 P 73'n,.it Executive Director/CEO ANdERSON OWy ■tm 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, 2017, 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 audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audits 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. -ll- 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, 2017, 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 1, 2018 - 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, 2017. 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 $62.5 million at the end of 2017. Of this amount, $29.7 million may be used to meet the District's ongoing obligations to patrons and creditors. The remaining $32.8 million are capital assets or are restricted by law. • The District's General Fund balance was $31.1 million as of December 31, 2017. Of this amount, $.9 million is reserved for emergencies. • The 2017 General Fund balance is $8,200,821 higher than the previous year. The total fund balance is 146% of 2017 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. 2017. net position was $62.5 million. The following table provides a summary of the District's net position at December 31: Table 1 - Net position (in Millions) 2017 2016 Assets Current and other assets $60.4 $ 51.8 Capital assets 32.9 34.1 Total assets 93.3 85.9 Liabilities Current and other liabilities 1.8 1.9 1.6 2.6 Long-term liabilities Total liabilities 3.4 4.5 Deferred Inflows Deferred Property Taxes 27.4 26.9 Net Position Net assets Investment in capital 30.9 31.2 Restricted 1.8 2.0 Unrestricted 29.8 21.3 Total net position $ 62.5 $ 54.5 A significant portion of High Plains Library District's net position (48%) represents unrestricted net position of $29.8 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 (49%) 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 $1.8 million of the District's net position (3%) 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 2017 2016 Revenues: General revenues: Property and specific ownership taxes Investment earnings Program revenues: Charges for services Operating grants and contributions Total revenues $ 29.086,905 279;300 89,100 76.675 29, 531,980 $ 37,462,247 214.921 101.381 122.808 37, 901, 357 Expenses: Library services Operations and maintenance Depreciation Interest on long-term debt Total expenses 17.270.523 2.911,932 1.266, 253 141,872 21,590,580 21.275.559 3,287,026 1.360.260 519,145 26,441,990 Increase in net position Beginning net position Ending net position 7.941,400 54.560, 554 $ 62.501,954 11,459, 367 43 101,187 $ 54 560,554 Governmental activities Governmental activities increased High Plains Library District's net position oy $7,941.400 in 2017. One key element to this change was the decreased property taxes from anticipated decreases in assessed property valuations for the 2017 collection year. Expenses totaled an 18% decrease over the previous year. Decreases occurred due to distributions to member libraries also decreasing as they are related to decreased property taxes. Interest expense decreased due to one of the certificate of participation series being repaid in 2016. FINANCIAL ANALYSIS OF THE LIBRARY DISTRICT'S FUNDS As noted earlier, High Plains Library District uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds Overview: The focus of Library District governmental funds is to provide information on near -term inflows. outflows, and balances of spendable resources. Such information is useful in assessing the Library District's financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government's net resources available for spending at the end of the year. As of the end of 2017, the combined ending fund balance of High Plains Library District governmental funds was $32.1 million. Approximately 71% 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 $872,179, and 2) a debt service reserve of $957200. 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 $31.1 million as of December 31, 2017. The 2017 fund balance is $8.2 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 106% of total 2017 expenditures and transfers out. while total fund balance is 146% of the same amount. The fund balance increased in 2017 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 $957.200 all of which is restricted for the payment of debt. This balance increased slightly during the year. 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 2016. the Board of Trustees appropriated $28.6 million for general fund expenditures and other financing uses. anticipating no decrease or increase in the fund balance. The actual increase was $8.2 million due to capital expenditures for new library facilities being shifted from 2017, and expenditures held under budget. The budget was not amended during the year. Table 2017 General Fund Budget (in Millions) Budget Actual Beginning Fund Balance $ 22.9 $ 22.9 Revenue 28.6 29.5 Expenditures and other financing uses 28.6 21.3 Ending Fund Balance $ 22.9 $ 31.1 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets: High Plains Library District's investment in capital assets for its governmental activities as of December 31. 2017 totals $32.9 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. 2017. High Plains Library District had outstanding long-term debt (principal amount) of $2.125 million in Certificates of Participation (COP's). funded by lease payments for remodeling various facilities. 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 2018 budget: • HPLD budgeted revenues for fiscal year 2018 increased approximately $485.000 or 1.69% compared to 2017. The 2018 budget includes funds to address the future home site of the Lincoln Park Library. remodel and expand the Erie Library. remodel the Carbon Valley Library. expand the Administration building, and enhance the Kersey Library with a new building or upgrade an existing building. The 2018 budget includes funds for four Outreach vehicles, two of which are intended to be replacements and the other two are expansions of the fleet. • Continued growth in Weld County causes increased demands in a I 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 2% in 2018 compared to 2017. Budgeted expenditures for 2018 include funding to lease a temporary facility for the Lincoln Park Library building as well as meet the demands placed by our patrons for library materials as well as increased programing for all ages. • Interest rates continue to increase which will have a positive impact on investment income. • 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 Ma-ager. 2650 West 29th Street Greeley, CO 80631. HIGH PLAINS LIBRARY DISTRICT GOVERNMENTAL FUNDS BALANCE SHEET/ STATEMENT OF NET POSITION December 31, 2017 General Fund Debt Service Fund Total ASSETS Cash and Investments Receivables: Property taxes Other assets Capital Assets: Depreciable Nondepreciable $ 31,686,371 $ 963,174 $ 32,649,545 27,389,997 213,112 - 27,389,997 213,112 Total Assets 59,289,480 963,174 60,252,654 DEFERRED OUTFLOWS OF RESOURCES Loss on Debt Refunding LIABILITIES Accounts Payable Accrued Costs Long -Term Liabilities: Due within one year Due after one year 465,266 334,120 465,266 5,974 340,094 Total Liabilities 799,386 5,974 805,360 DEFERRED INFLOWS OF RESOURCES Deferred Property Taxes 27,389,997 27,389,997 FUND BALANCES/NET POSITION Fund Balances: Restricted for: Emergencies Debt service Assigned for capital projects Unassigned 872,179 7,577,350 22,650,568 872,179 957,200 957,200 7,577,350 22,650,568 Total Fund Balances 31,100,097 957,200 32,057,297 Total Liabilities and Fund Balances $ 59,289,480 $ 963,174 $ 60,252,654 Net Position: Net investment in capital assets Restricted for debt service Restricted for emergencies Unrestricted Total Net Position See Accompanying Notes to Financial Statements. -18- Adjustments Statement of (Note 10) Net Position $ - $ 32,649,545 - 27,389,997 213,112 29,297,122 29,297,122 3,643,871 3,643,871 32,940,993 93,193,647 115,311 115,311 465,266 340,094 1,045,000 1,045,000 1,566,647 1,566,647 2,611,647 3,417,007 27,389,997 (872,179) (957,200) (7,577,350) (22,650,568) (32,057,297) 30,931,304 30,931,304 957,200 957,200 872,179 872,179 29, 741,271 29, 741,271 $ 62,501,954 $ 62,501,954 -19- HIGH PLAINS LIBRARY DISTRICT STATEMENT OF GOVERNMENTAL FUNDS REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCES/ STATEMENT OF ACTIVITIES Year Ended December 31, 2017 Debt General Service Fund Fund Total Revenue: General property taxes Specific ownership taxes Penalties and interest on delinquent taxes Library fines Earnings on investments Grant Miscellaneous $ 26,947,573 $ - $ 26,947,573 2,125,055 - 2,125,055 14,277 14,277 89,100 89,100 278,255 1,045 279,300 65,578 65,578 11,097 11,097 Total Revenue 29,530,935 1,045 29,531,980 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 Rent Utilities Grants-in-aid Depreciation 8,987,418 8,987,418 380,335 380,335 49,953 49,953 232,146 232,146 22,084 22,084 7,199 7,199 528,602 528,602 51,850 51,850 57,304 57,304 665,201 665,201 58,829 58,829 169,178 169,178 988,487 988,487 207,581 207,581 82,388 82,388 403,494 403,494 690,820 690,820 13,824 13,824 3,664 3,664 59,806 59,806 285,345 285,345 6,227,241 6,227,241 Total Current 20,172,749 20,172,749 Continued on next page. -20- Adjustments Statement of (Note 11) Activities $ - $ 26,947,573 - 2,125,055 14,277 89,100 279,300 65,578 11,097 29,531,980 9,706 8,997,124 380,335 49,953 232,146 22,084 7,199 528,602 51,850 57,304 665,201 - 58,829 169,178 988,487 207,581 82,388 403,494 690,820 13,824 3,664 59,806 285,345 6,227,241 1,266,253 1,266,253 1,275,959 21,448,708 -21- HIGH PLAINS LIBRARY DISTRICT STATEMENT OF GOVERNMENTAL FUNDS REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCES/ STATEMENT OF ACTIVITIES Continued Year Ended December 31, 2017 Debt General Service Fund Fund Total Expenditures/Expenses - Continued: Capital Outlay Debt Service: Principal Interest and Fees $ 53,149 $ $ 53,149 1,020,000 1,020,000 84,216 84,216 Total Expenditures/Expenses 20,225,898 1,104,216 21,330,114 Revenue Over (Under) Expenditures Other Financing Sources (Uses): Transfers - internal activities 9,305,037 (1,103,171) 8,201,866 (1,104,216) 1,104,216 Net Change in Fund Balances/Net Position Fund Balances/Net Position, Beginning of Yea! 8,200,821 22,899,276 1,045 956,155 8,201,866 23,855,431 Fund Balances/Net Position, End of Year $ 31,100,097 $ 957,200 $ 32,057,297 See Accompanying Notes to Financial Statements. -22- Adjustments Statement of (Note 11) Activities $ (53,149) $ (1,020,000) 57,656 141,872 260,466 21,590,580 (260,466) 7,941,400 (260,466) 7,941,400 30,705,123 54,560,554 $ 30,444,657 $ 62,501,954 -23- HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON STATEMENT - GENERAL FUND Year Ended December 31, 2017 Revenue: General property taxes Specific ownership taxes Penalties and interest on delinquent taxes Grants Library fines Earnings on investments Contributions - in kind Miscellaneous Actual $ 26,947,573 2,125,055 14,277 65,578 89,100 278,255 11,097 Original and Final Budget $ 26,930,379 1,400,000 65,621 65,000 120,000 15,600 10,000 Variance $ 17,194 725,055 14,277 (43) 24,100 158,255 (15,600) 1,097 Total Revenue 29,530,935 28,606,600 924,335 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 Utilities Grants-in-aid 8,987,418 380,335 49,953 232,146 22,084 7,199 528,602 51,850 57,304 665,201 58,829 169,178 988,487 207,581 82,388 403,494 690,820 13,824 3,664 59,806 285,345 6,227,241 9,917,332 504,662 59,443 286,456 41,857 18,100 584,000 52,000 110,875 708,000 63,700 253,542 945,602 185,000 105,765 425,281 574,738 17,833 4,030 61,829 65,170 294,253 6,227,241 929,914 124,327 9,490 54,310 19,773 10,901 55,398 150 53,571 42,799 4,871 84,364 (42,885) (22,581) 23,377 21,787 (116,082) 4,009 366 2,023 65,170 8,908 Total Current 20,172,749 21,506,709 1,333,960 Capital Outlay 53,149 5,982,366 5,929,217 Total Expenditures 20,225,898 27,489,075 7,263,177 Continued on next page. -24- HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON STATEMENT - GENERAL FUND - Continued Original and Final Year Ended December 31, 2017 Actual Budget Variance Revenue Over Expenditures $ 9,305,037 $ 1,117,525 $ 8,187,512 Other Financing Sources (Uses): Transfer to Debt Service Fund (1,104,216) (1,117,525) 13,309 Excess of Revenue Over Expenditures and Other Financing Sources (Uses) Fund Balances - Beginning 8,200,821 22,899,276 - 8,200,821 22,899,276 Fund Balances - Ending $ 31,100,097 $ 22,899,276 $ 8,200,821 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, 2017 are $872,179. Restricted for Debt Services: A restricted fund of $957,200 is required by the 2010 certificates of participation. 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 position invested in capital assets, net of related debt 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, 2017, levies for the general fund of the District are as follows: Mill Levy Amount General Fund 3.249 $ 26,930,379 Property tax revenue is reported net of approximately $546,000 of property tax abatements for the year ended December 31, 2017. 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 (55%), U.S. treasury bonds (19%), U.S. sponsored agency bonds (24%), and corporate bonds (2%). 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, 2017, the Library District held General Fund investments of $17,511,927 and Debt Service Fund investments of $963,174 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. Investments held as of December 31, 2017 are as follows: Cost Fair Value U.S. Government Treasury and Sponsored Agency Bonds, primarily FNMA, FFCB, and FHLMC, maturing in 2018 through 2020, rated AA+ by Standard & Poor's Corporate Bonds, maturing in 2018, rated AA by Standard & Poor's $ 13,483,092 $ 13,439,392 500,050 501,619 Total $13,983,142 $ 13,941,011 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 I 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 - 31 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 2 - Cash and Investments - Continued: 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, 2017 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) (Level 3) 13,439,392 501,619 NOTE 3 - Grants -In -Aid: Cash grants-in-aid sent to member libraries to help support their facilities are listed below: Year Ended December 31, 2017 Amount Town of: Ault Eaton Fort Lupton Hudson Johnstown Platteville $ 386,188 868,553 2,276,520 1,733,466 344,793 617,721 $ 6,227,241 Grants-in-aid are determined by the amount of property tax collected from incorporated areas. Additional grants-in-aid in the form of equipment donations are also occasionally made. - 32 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 4 — Capital Assets: Capital asset activity for the year ended December 31, 2017 was as follows: Balance, Deletions/ Balance, 01/01/17 Additions Transfers 12/31/17 Not Depreciated: Land $ 716,670 $ -- $ -- $ 716,670 Opening day book collection 2,927,201 2,927,201 Depreciated: Buildings 32,856,758 32,856,758 Building improvements 4,222,292 17,980 4,240,272 Equipment and furniture 4,091,595 35,169 4,126,764 Total Cost 44,814,516 53,149 44,867,665 Less Accumulated Depreciation: Buildings 6,267,514 719,435 Building improvements 1,217,817 213,755 Equipment and furniture 3,175,088 333,063 Total Accumulated Depreciation 6,986,949 1,431,572 3,508,151 10,660,419 1,266,253 -- 11,926,672 Capital Assets, net $ 34,154,097 $(1,213,104) $ - - $ 32,940,993 NOTE 5 - Long -Term Liabilities: December 31 2017 $9,580,000 Refunding Certificates of Participation (2010) due in varying installments through December 15, 2019, interest at 2.0 - 3.0% $ 2,125,000 $ 2,125,000 - 33 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 5 - Long -Term Liabilities - Continued: The annual requirements to repay these certificates as of December 31, 2017, are as follows: Years Ending December 31 Principal Interest Total 2018 $ 1,045,000 $ 63,750 $ 1,108,750 2019 1,080,000 32,400 1,112,400 $ 2,125,000 $ 96,150 $ 2,221,150 Underlying the Certificates is an annually renewable lease entered into between the District and the Weld Library Finance Corporation, a Colorado nonprofit corporation created to facilitate District financings for library buildings in Weld County. The Certificates are payable solely from the rentals paid by the District, proceeds of certain insurance policies and proceeds of foreclosure on and sale of the property, if necessary. Neither the certificates nor the lease gives rise to a general obligation of the District. As the chance of the lease not being renewed is remote, the Certificates are recorded as a long-term liability. Transfers from the General Fund to the Debt Service Fund are made to fund these payments. Changes in long-term liabilities during the year were as follows: Balance Balance Due Within 01/01/17 Additions Deletions 12/31/17 One Year Refunding Certificates of Participation — 2010 $ 3,145,000 $ -- $ 1,020,000 $ 2,125,000 $ 1,045,000 Compensated Absences 476,941 37,363 27,657 486,647 20,000 $ 3,621,941 $ 37,363 $ 1,047,657 $ 2,611,647 $ 1,065,000 - 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. On January 1, 2014, the District and the City renewed the agreement on an annual basis, pending the redevelopment of the property by the City. The property began redevelopment in June 2016. In connection with this agreement, the District rented a library building from the City of Greeley for $10 per year. These yearly rents were adjusted in the financial statements to recognize the fair market value of these facilities. The lease ended May 2016. The District entered into a one year lease with Goodwill Industries of Denver starting in May 2016 for a temporary location for the Lincoln Park branch in downtown Greeley. After the initial one year period, there is a month to month option for an additional year. Lease expense in 2017 and 2016 was $49,560 and $28,910 respectively. 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. - 35 - HIGH PLAINS LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 8 - Taxpayer's Bill of Rights — Continued: Included in the accompanying financial statements in the General Fund is an emergency reserve of $872,179 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. 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 2017, employees contributed $320,347 and the District contributed $320,347 to the plan. The amount payable to the plan at December 31, 2017 was $33,694. 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 2017 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 and deferred outflows, including C.O.P.'s payable, are not due and payable in the current period and therefore are not reported in the funds $ 32,057,297 32,940,993 (2,496,336) Total Net Position $ 62,501,954 -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 2017 Net change in fund balances — total governmental funds $ 8,201,866 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 ($53,149) was less than depreciation ($1,266,253) in the current year. (1,213,104) 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. 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 962,344 (9,706) Change in Net Position of Governmental Activities $ 7,941,400 - 37 - HIGH PLAINS LIBRARY DISTRICT BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND Year Ended December 31, 2017 Original and Final Actual Budget Variance Revenue: Earnings on investments $ 1,045 $ 600 $ 445 Total Revenue 1,045 600 445 Expenditures: Debt service 1,104,216 1,117,525 13,309 Total Expenditures 1,104,216 1,117,525 13,309 Revenue Under Expenditures Other Financing Sources (Uses): Transfer from General Fund (1,103,171) (1,116,925) 13,754 1,104,216 1,117,525 (13,309) Revenue and Other Financing Sources Over Expenditures Fund Balance - Beginning 1,045 600 445 956,155 935,279 20,876 Fund Balance - Ending $ 957,200 $ 935,879 $ 21,321 -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 41-46 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $ 9,056,248 $ 11,402,832 $ 12,011,872 $ 12,298,749 968,184 972,355 916,009 929,937 464,902 451,652 555,749 449,770 11,793, 599 10,105,814 12,658, 266 13,109, 042 $ 22,282,933 $ 22,932,653 $ 26,141,896 $ 26,787,498 $ 13,537,209 $ 15,481,507 $ 22,620,113 $ 22,839,391 $ 31,182,064 $ 30,931,304 930,828 931,956 933,107 934,901 956,155 957,200 515,291 598,917 684,707 862,082 1,123,404 872,179 13, 360,265 14, 596, 825 11, 910, 752 18,464,841 21, 298, 931 29, 741,271 $ 28,343,593 $ 31,609,205 $ 36,148,679 $ 43,101,215 $ 54,560,554 $ 62,501,954 Primary government Invested in capital assets, net of related debt 9,056,248 11,402,832 12,011,872 12,298,749 13,537,209 15,481,507 22,620,113 22,839,391 31,182,064 30,931,304 Restricted 1,433,086 1,424,007 1,471,758 1,379,707 1,446,119 1,530,873 1,617,814 1,796,983 2,079,559 1,829,379 Unrestricted 11, 793, 599 10,105, 814 12, 658, 266 13,109, 042 13, 360,265 14, 596, 825 11, 910, 752 18,464, 841 21,298, 931 29, 741,271 Total primary government net assets $ 22,282,933 $ 22,932,653 $ 26,141,896 $ 26,787,498 $ 28,343,593 $ 31,609,205 $ 36,148,679 $ 43,101,215 $ 54,560,554 $ 62,501,954 High Plains Library District Changes in Net Position Last Ten Years (accrual basis of accounting) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Expenses Governmental activities: General government Interest on long term debt Debt issuance costs Total governmental activities expenses $ 12,563,649 $ 13,479,401 $ 14,544,604 $ 13,607,335 $ 15,346,468 $ 16,840,316 $ 18,129,352 $ 21,711,526 $ 25,922,845 $ 21,448,708 956,850 927,203 772,337 734,515 704,412 665,007 622,536 580,418 519,145 141,872 - - 14,389 14,389 - - - $ 13,520,499 $ 14,406,604 $ 15,316,941 $ 14,356,239 $ 16,065,269 $ 17,505,323 $ 18,751,888 $ 22,291,944 $ 26,441,990 $ 21,590,580 Program Revenues Governmental activities: Charges for services: General government 167,380 195,387 197,986 178,005 201,749 176,750 174,026 156,912 101,381 89,100 Operating grants and contributions 553,113 113,750 138,750 113,750 128,248 185,227 137,247 192,479 122,808 76,675 Total governmental activities program revenues $ 720,493 $ 309,137 $ 336,736 $ 291,755 $ 327,997 $ 361,977 $ 311,273 $ 349,391 $ 224,189 $ 165,775 Net (Expenses)!Revenue Governmental activities Total primary government net General Revenues and Other Changes in Net Position 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 N $ (12,800,006) $ (14,097,467) $ (14,980,205) $ (14,064,484) $ (15,737,272) $ (17,143,346) $ (18,440,615) $ (21,942,553) $ (26,217,801) $ (21,424,805) $ 13,009,141 $ 13,278,755 $ 16,906,588 $ 13,602,800 $ 15,849,259 $ 19,043,402 $ 21,048,874 26,881,943 35,238,427 26,961,850 1,211,207 1,048,351 1,044,416 979,076 1,280,320 1,298,477 1,784,930 1,854,124 2,223,890 2,125,055 647,636 420,081 238,444 128,210 163,788 167,822 146,285 159,022 214,921 279,300 14,867,984 14,747,187 18,189,448 14,710,086 17,293,367 20,509,701 22,980,089 28,895,089 37,677,238 29,366,205 $ 14,867,984 $ 14,747,187 $ 18,189,448 $ 14,710,086 $ 17,293,367 $ 20,509,701 $ 22,980,089 $ 28,895,089 $ 37,677,238 $ 29,366,205 $ 2,067,978 $ 649,720 $ 3,209,243 $ 645,602 $ 1,556,095 $ 3,366,355 $ 4,539,474 $ 6,952,536 $ 11,459,437 $ 7,941,400 $ 2,067,978 $ 649,720 $ 3,209,243 $ 645,602 $ 1,556,095 $ 3,366,355 $ 4,539,474 $ 6,952,536 $ 11,459,437 $ 7,941,400 High Plains Library District Fund Balances of Governmental Funds Last Ten Years (modified accrual basis of accounting) General Fund Restricted Unrestricted, unassigned Assigned Total general fund 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $ 464,902 $ 451,652 $ 555,749 $ 449,770 $ 515,291 $ 598,917 $ 684,707 $ 862,082 $ 1,123,404 $ 872,179 12,021,916 10,339,711 12,800,520 13,278,254 13,541,761 14,250,893 12,287,812 13,710,589 16,348,874 22,650,568 - - - 5,170,000 5,427,000 7,577,350 $ 12,486,818 $ 10,791,363 $ 13,356,269 $ 13,728,024 $ 14,057,052 $ 14,849,810 $ 12,972,519 $ 19,742,671 $ 22,899,278 $ 31,100,097 All other Governmental Funds Restricted $ 1,023,775 $ 976,128 $ 1,435,069 $ 929,965 $ 930,828 $ 931,956 $ 933,107 934,901 956,155 957,200 Total for all governmental funds $ 13,510,593 $ 11,767,491 $ 14,791,338 $ 14,657,989 $ 14,987,880 $ 15,781,766 $ 13,905,626 $ 20,677,572 $ 23,855,433 $ 32,057,297 High Plains Library District Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) Revenues Taxes Charges for services Library fines Earnings on investments Contributions in kind - rent Miscellaneous Total revenues Expenditures General government Capital outlay Debt issuance costs Debt service Interest Principal Total expenditures 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Excess of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers out Proceeds of debt Payment to refunded debt escrow agent Sale of capital assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures $ 14,220,348 25,878 128,295 647,636 113,750 394,024 $ 14,327,106 27,436 165,640 420,081 113,750 2,311 $17,951,004 23,787 170,724 238,444 113,750 28,475 $14,581,876 $17,129,579 $20,341,879 $22,823,587 28,750,311 37,462,247 29,086,905 21,504 25,106 154,588 168,186 167,834 174,026 156,912 101,381 89,100 128,210 163,788 167,822 146,285 159,022 214,921 279,300 113,750 113,750 113,750 113,750 113,750 47,395 - 1,913 20,955 80,393 33,714 64,485 75,413 76,675 15,529,931 15,056,324 18,526,184 15,001,841 17,621,364 20,871,678 23,291,362 29,244,480 37,901,357 29,531,980 12, 339, 574 12, 617,493 13,602, 384 12, 573, 567 14, 237, 613 15,651, 701 16, 982, 271 20, 271,134 1,875,230 2,189,730 1,049,190 479,764 957,104 2,323,740 6,090,351 108,638 129,523 - - 956,850 570,000 15,741,654 927,203 772,337 676,859 646,756 1,065,000 1,235,000 1,405,000 1,450,000 16,799,426 16,788,434 15,135,190 17,291,473 24,501,391 370,588 20,156,867 70,531 607,351 564,880 522,762 461,489 82,716 1,495,000 1,530,000 1,570,000 9,390,000 1,020,000 20,077,792 25,167,502 22,472,534 34,723,468 21,330,114 (211,723) (1,743,102) 1,737,750 (133,349) 329,891 793,886 (1,876,140) 6,771,946 3,177,889 8,201,866 1,492, 085 (1,492,085) 80,000 80,000 - 1,286,097 - - - - 1,995,160 (1,995,160) 1,993,701 (1,993,701) 9,580,000 (8,293,903) 2,094,717 (2,094,717) 2,095,385 (2,095,385) 2,102,192 2,094,880 2,092,762 9,867,206 1,102,716 (2,102,192) (2,094,880) (2,092,762) (9,867,206) (1,102,716) $ (131,723) $ (1,743,102) $ 3,023,847 $ (133,349) $ 329,891 $ 793,886 $ (1,876,140) $ 6,771,946 $ 3,177,889 $ 8,201,866 13.64% 12.75% 14.21% 12.84% 11.84% 10.98% 9.36% 28.68% 5.19% High Plains Library District General Governmental Expenditures By Function Last Ten Fiscal Years Fiscal Administrative Books; Facilities Grants Capital Debt Year Salaries Benefits Services Resources Operations In Aid Outlay Service Totals 2008 4,640,223 1,072,167 1,538,707 1,964,908 805,422 2,486,401 1,706,976 1,526,850 15,741,654 2009 4,943,865 1,100,470 1,664,117 1,333,189 868,594 2,707,258 2,189,730 1,992,203 16,799,426 2010 4,993,005 1,256,554 1,498,585 1,253,838 1,168,945 3,431,457 1,049,190 2,136,860 16,788,434 2011 4,972,908 1,270,033 1,691,690 1,056,746 996,174 2,586,016 479,764 2,081,859 15,135,190 2012 5,334,425 1,389,422 1,772,378 1,239,946 1,272,936 3,228,506 957,104 2,096,756 17,291,473 2013 5,644,619 1,306,285 2,056,482 1,248,730 1,315,355 4,080,230 2,323,740 2,102,351 20,077,792 20141 6,120,836 1,675,209 1,780,284 1,238,798 1,598,867 4,577,277 6,090,351 2,094,880 25,176,502 2015 6,724,535 1,971,410 2,006,234 1,633,200 1,406,582 6,529,173 108,638 2,092,762 22,472,534 20162 7,127,174 2,041,965 2,632,139 1,652,204 1,609,406 9,438,503 370,588 9,851,489 34,723,468 2017 6,928,292 2,014,659 2,291,142 1,117,897 1,577,637 6,227,241 70,530 1,102,716 21,330,114 Note: 1 The large increase in capital outlay reflects the construction costs of the Riverside Library and Cultural Center. 2 The large increase in debt service reflects the early repayment of the 2006 Certificates of Participation. 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 2008 12,987,150 1,211,207 647,636 382,000 128,295 173,643 15,529,931 2009 13,254,718 1,048,351 420,081 165,640 167,534 15,056,324 2010 16,874,455 1,044,416 238,444 25,000 170,724 173,145 18,526,184 2011 13,602,800 979,076 128,210 - 154,588 137,167 15,001,841 2012 15,849,259 1,280,320 163,788 12,498 168,186 147,313 17,621,364 2013 19,043,402 1,298,477 167,822 71,477 167,834 122,666 20,871,678 2014 21,038,657 1,784,930 146,285 16,302 174,026 131,162 23,291,362 2015 26,881,943 1,854,124 159,022 55,436 156,912 137,043 29,244,480 2016 35,238,427 2,223,820 214,921 60,836 101,381 61,972 37,901,357 2017 26,961,850 2,125,055 279,300 65,578 89,100 11,097 29,531,980 Source: HPLD 2017 CAFR High Plains Library District Property Tax Levies and Collections Last Ten Fiscal Years (amounts expressed in thousands) Levy Collect Year Year 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 Total Tax Levy for Fiscal Year 1 Source: 1 Final Budget 2 YTD Treasurer's Tax Distribution 3 Not available for years not shown 13,028 13,321 16,934 13,609 15,880 19,074 21,063 27,320 35,255 26,930 Collections Collected within the Fiscal Year of in the Levy Subsequent Tax Amount 2 Percent of Levy Years 3 12,987 13,255 16,874 13,581 15,832 19,023 21,038 26,882 35,223 26,962 99.7% 99.5% 99.6% 99.8% 99.7% 99.7% 99.9% 98.4% 99.9% 100.1% 5 66 60 Total Collections to Date Tax Amount Percent of Levy 12,992 99.7% 13,321 100.0% 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% 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 2008 89,085 1,028,385 555,777 98,813 91,031 13,620 1,643,986 475,737 3,996,434 20,513,872 3.249 19.482% 2009 80,401 923,754 601,990 144,788 93,731 14,798 2,728,330 520,780 5,108,572 19,995,658 3.249 25.548% 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% Source: Weld County Assessor's office so High Plains Library District Principal Taxpayers December 31, 2017 2017 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 Public Service Company of Colorado (Xcel) DCP Midstream LP Bonanza Creek Energy Inc. Kerr Mcgee Gathering LLC DCP Lucerne 2 Plant, LLC Petroleum Development Corp. Rocky Mountain Energy Center Petro -Canada Resources (USA) Inc. Merit Energy Source: Weld County Assessor 1,344,484,170 1, 035, 845, 790 536,832,300 250,460,760 248,981,470 225,989,480 190,514,810 183,544,240 178,824,370 165,321,640 $ 4,360,799,030 1 16.59% 2 12.78% 3 4 5 6 7 8 9 10 6.63% 3.09% 3.07% 2.79% 2.35% 2.27% 2.21% 2.04% 53.82% 2008 Taxable Assessed Value Percentage of Total Taxable Assessed Rank Value 445,390,850 635,470,520 130,337,590 2 1 3 90,839,600 5 50,954,850 10 53,956,900 8 112,117,250 74,138,000 87,617,670 52,455,875 $1,733,279,105 4 7 6 9 11.37% 16.23% 3.33% 2.32% 1.30% 1.38% 2.86% 1.89% 2.24% 1.34% 44.26% High Plains Library District Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Actitivities Fiscal Certificates of Year Participation 2008 20,480,000 2009 19,415,000 2010 19,466,100 2011 18,118,756 2012 16,726,412 2013 15,635,000 2014 14,105,000 2015 12,535,000 2016 3,145,000 2017 2,125,000 Total Library District Percentage of Personal Income 1 Per Capita 1 20,480,000 19,415,000 19,466,100 18,118,756 16,726,412 15,635,000 14,105,000 12,535,000 3,145, 000 2,125,000 0.31% 0.26% 0.28% 0.26% 0.22% 0.19% 0.17% 0.15% 0.04% 0.03% 83.76 77.28 76.99 71.12 63.43 59.29 52.28 45.67 11.04 6.98 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 33 of the CAFR. Source: Current and prior year's financial statements. High Plains Library Distric Legal Debt Margin Calculation for Fiscal Year 201' Assessed Valuation Debt Limit 1.5% of Assessed Value 1 $8,412,253,355 126,183,800 Certificates of Participation 2 2,125,000 Legal Debt Margin 124,058,800 Legal Debt Margin Information Last Ten Fiscal Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Debt limit $ 59,946,492 $ 76,527,915 $ 60,781,581 $ 71,333,143 $ 86,294,415 $ 95,350,662 $125,437,455 $159,863,784 $123,496,081 $126,183,800 Total net debt applicable to limit 20,480,000 19,415,000 19,466,100 18,118,756 16,726,412 15,635,060 14,145,000 12,535,000 3,145,000 2,125,000 Legal debt margin $ 39,466,492 $ 57,112,915 $ 41,315,481 $ 53,214,387 $ 69,568,003 $ 79,715,602 $111,292,455 $147,328,784 $120,351,081 $124,058,800 Total net debt applicable to the limit as a percentage of debt limit 34.16% 25.37% 32.03% 25.40% 19.38% 16.40% 11.28% 7.84% 2.55% 1.68% Note: 'Debt Limitation: Under Section 22-42-104, Colorado Revised Statutes, 1973, the High Plains Library District may incur indebtedness of general District purposes in an amount not to exceed 1.5% of assessed valuation of all taxable property. 2 Certificates of Participation are not generally included as debt for purposes of calculating legal debt limit (Colorado Revised Statute 22-42-104). However, they are presented here to give the most conservative analysis of debt allowable that remains available. High Plains Library District Direct and Overlapping Governmental Activities Debt As of December 31, 2017 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 $ 2,125,000 100.00% $ 2,125,000 2,125,000 2,125,000 76,380,445 60.13% 45,930,364 1,274,364,527 46.94% 598,156,577 141,182,446 55.42% 78,237,715 1,491,927,418 722,324,656 Total Direct and Overlapping Debt $1,494,052,418 $ 724,449,656 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 229,010 237,214 235,511 236,815 240,898 245,989 251,308 257,157 259,688 268,307 244,515 251,220 252,825 254,759 263,691 263,691 269,785 274,487 284,876 296,397 6.66 7.38 7.07 6.93 7.76 8.35 8.35 8.35 8.35 11.20 27,238 27,788 28,503 27,186 25,233 29,986 31,657 27,047 42,787 42,701 6.30% 8.16% 9.80% 9.10% 8.70% 6.70% 3.90% 3.80% 2.60% 3.40% 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 December 31, 2017 2017 Percentage of Total County Employees Rank Employment JBS Swift Beef Company Banner Health: Northern Colorado Medical Center Greeley Evans School District 6 University of Northern Colorado Weld County Government State Farm Insurance Companies City of Greeley Teletech Halliburton Energy Services Inc. Anadarko Petroleum State of Colorado (includes UNC) Wal-Mart Super Center US Government Aims Community College Total Principal Employers Other Employers Total County Employment 4,520 3,600 1,923 1,623 1,615 1,300 812 780 700 610 17,483 131,882 149,365 Combined State of Colorado (including UNC) not available for 2017 Source: Upstate Colorado 1 2 3 4 5 6 7 8 9 10 3.03% 2.41% 1.29% 1.09% 1.08% 0.87% 0.54% 0.52% 0.47% 0.41% 11.70% 88.30% 100.00% 2008 Employees Percentage of Total County Rank Employment 3,600 2,700 2,400 1,490 1,310 1,160 1,701 1,015 1,400 874 17,650 98,926 116,576 1 3.09% 2 2.32% 3 2.06% 5 1.28% 7 1.12% 8 1.00% 4 9 6 10 1.46% 0.87% 1.20% 0.75% 15.14% 84.86% 100.00% High Plains Library District Library Materials Purchased and Circulated Last Ten Fiscal Years Fiscal Year Number of Number of AudioNisual Volumes Owned (1) Items Owned (2) Total Items Owned Number of Items Circulated * 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 588,748 612,332 613,815 637,087 652,019 615,874 673,140 683,682 636,645 534,531 90,252 103,306 111,641 111,048 104,427 111,046 128,416 131,135 602,207 609,660 Source: High Plains Library District IT department. 679,000 715,638 725,456 748,135 756,446 726,920 801,556 814,817 1,238,852 1,144,191 2,309,741 2,709,365 2,774,312 2,761,638 2,746,572 2,879,953 2,749,021 2,781,499 2,640,378 2,555,135 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, 2017 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 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 RIY CI Dille Llul al Fiscal Centennial Lincoln Year Carbon Valley' Park Erie 2 Farr Kersey 3 Park 2008 328,473 485,661 274,667 551,880 199,280 2009 431,063 557,161 360,777 613,829 230,495 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 and Cultural Center Outreach 4 Services Total 64,440 1,904,401 66,912 2,260,237 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 Note: 1 The Carbon Valley Regional Library opened in March 2008. 2 Erie activity occurred at the Lorraine David Children's Library which ceased its operations with the Erie Community Library opening on January 12, 2008. 3 The Kersey mini -branch opened in January 2013. The Kersey mini -branch was closed from 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. Hello