HomeMy WebLinkAbout20172696.tiffWindsor -Severance Fire Protection District
Financial Statements
With
Independent Auditors' Report
For the Year Ended
December 31, 2016
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2017-2696
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Windsor -Severance Fire Protection District
Table of Contents
PAGE
INTRODUCTORY SECTION
Table of Contents
Management's Discussion and Analysis M1 - M7
FINANCIAL SECTION
Independent Auditors' Report
Basic Financial Statements
Government -Wide Financial Statements:
1-2
Statement of Net Position 3
Statement of Activities 4
Fund Financial Statements:
Balance Sheet — Governmental Funds 5
Reconciliation of Governmental Fund Balance to Governmental Activities Net Position 6
Statement of Revenues, Expenditures and Change in Fund Balances -
Governmental Funds 7
Reconciliation of Governmental Change in Fund Balance to Governmental Activities
Change in Net Position 8
Notes to Financial Statements 9 — 30
Required Supplementary Information —Pension Schedules (Unaudited)
FPPA Statewide Hybrid Plan
Schedule of the District's Proportionate Share of the Net Pension Asset (Liability) 31
Schedule of District Contributions 32
Volunteer Pension Plan
Schedule of Changes in the District's Net Pension Liability
Schedule of the District's Net Pension Liability and Related Ratios
Schedule of Actuarially Determined and Actual Contributions
Required Supplementary Information
Budgetary Comparison Schedule — General Fund
Other Supplementary Information
Budgetary Comparison Schedule — Capital Projects Fund
Budgetary Comparison Schedule — Debt Service Fund
33
34
35
36
37
38
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
This section of the annual financial report offers readers of the Windsor -Severance Fire Protection District's (the
"District") financial statements a discussion and analysis of the financial performance during the year ended December
31, 2016. We encourage readers to consider the information presented here in conjunction with additional information
furnished in the financial statements, which immediately follow this section.
Background Information
The District was created in 1950, by a number of citizens concerned about fire protection for their homes and
businesses. The predominant fund approach for the District is comprised of three basic funds, the General, Capital
and Debt Service Funds.
In November, 1997, the District Board of Directors asked the taxpayers to remove the TABOR limits that were imposed
on the District in 1992. In 2000, the voters were asked to approve a 2.00 mill increase to hire the Districts first full-time
career firefighters. The final mill levy for the District was set at 7.194 mills for 2016 to be collected during 2017.
Financial Highlights
The District's financial status increased over the course of the 2016 fiscal year. Total net position increased
12 percent.
Governmental activities tax revenues account for $5,890,607 or 99 percent of all revenues. Program
specific revenues in the form of charges for services, operating grants and contributions and capital grants
and contributions accounted for 16,060 or 1 percent of total revenues of $5,891,896.
The District had $4,847,960 in expenses related to governmental activities; only $292,327 of these
expenses were offset by program specific charges for services and operating grants and contributions.
General property and specific ownership taxes of $5,890,607 and $16,060 in other revenues were adequate
to provide for these programs.
Outlay for capital assets primarily comprised of the purchase of a Zodiac, a Code Blue Simulator, and
several AEDs. See the Capital Assets section of this management's discussion and analysis for more
information.
The District had a net decrease in outstanding long-term debt in the amount of $2,859,223 or 50 percent.
Overview of the Financial Statements
This annual financial report consists of four parts: management's discussion and analysis, the basic financial
statements, required supplementary information, and other supplementary information. The basic financial statements
include two kinds of statements that present different views of the District.
The first two statements are government -wide financial statements that provide both short-term and long-
term information about the District's overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the District, reporting
the District's operations in more detail than the government -wide statements. The governmental funds
statements tell how basic services such as fire protection were financed in the short-term as well as what
remains for future spending.
The financial statements also include notes to explain information in the statements and provide more detailed data.
Ml
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
Government -wide Statements
The government -wide statements are designed to provide readers a broad overview of the District's finances, in a
manner similar to a private -sector business. The Statement of Net Position includes all of the District's assets and
liabilities. All of the current year's revenues and expenses are accounted for in the Statement of Activities regardless of
when cash is received or paid.
These statements provide both short-term and long-term information about the District's overall financial status.
The Statement of Net Position presents information on all of the District's assets and liabilities, with the difference
between the two reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the District is improving or deteriorating. To assess the District's overall
health, the reader needs to consider additional non -financial factors such as the condition of buildings and equipment.
The Statement of Activities presents information showing how the government's net position changed during the most
recent fiscal 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 this statement for
some items that will only result in cash flow in future fiscal periods.
Both of the government -wide financial statements distinguish functions of the District that are principally supported by
taxes and intergovernmental revenues (governmental activities). Included in governmental activities are most of the
District's basic services such as fire protection.
The basic district -wide financial statements can be found on pages 3 - 4 of this report.
Fund Financial Statements
The fund financial statements provide more detailed information about the District's funds, focusing on its most
significant or major funds, not the District as a whole. Funds are accounting devices the District uses to keep track of
specific sources of funding and spending on particular programs. The District funds are all categorized as governmental
funds:
Governmental funds: Most of the District's basic services are included in governmental funds, which
generally focus on (1) inflows and outflows of cash and other financial assets and (2) balances remaining
at year-end which are available for spending. Consequently, the governmental funds statements provide
a detailed short-term view that helps determine financial resources that may be available in the near
term to finance the District's programs. Because this information does not encompass the long-term
focus of the district -wide statements, a reconciling schedule is included on the governmental funds
statements explaining the relationship (or difference) between them.
The District maintains two governmental funds. Information is presented separately in the governmental fund balance
sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the general
and debt service funds which are considered major funds. The basic governmental fund financial statements can be
found on pages 5 - 8 of this report.
M2
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the district -wide
and fund financial statements. The notes to the financial statements can be found on pages 9 - 29 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information, such as the pension information on pages 30 — 34, the budgetary comparison schedule for
the general fund on page 35, and other supplementary information shown on pages 36 and 37.
Financial Analysis of the District as a Whole
Net Position and Change in Net Position
The District's combined net position was higher at December 31, 2016, than they were at December 31, 2015,
increasing 12 percent to $11,227,867. Table 1 provides a summary of the District's Net Position.
Table 1:
CONDENSED STATEMENT OF NET POSITION
Governmental
Activities
2016 2015
ASSETS
Current Assets
Capital Assets Net
Total Assets
DEFERRED OUTFLOW OF
FINANCIAL RESOURCES
LIABILITIES
Current Liabilities
Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOW OF
FINANCIAL RESOURCES
NET POSITION
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
$ 10,352,726 $ 11,795,955
8,927,812 9,199,862
19,280,538 20,995,817
880,167 491,329
63,899 87,263
2,934,471 5,793,692
2,998,370 5,880,955
5,934,468 5,663,109
5,993,341 3,910,177
597,907 964,031
4,636,619 5,068,874
$ 11,227,867 $ 9,943,082
M3
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
Table 2 provides a summary of the activities of the District. The following table is specific discussion related to overall
revenues and expenses.
Table 2:
CONDENSED STATEMENT OF ACTIVITIES
Governmental
Activities
2016 2015
PROGRAM REVENUES
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
Total Program Revenues
GENERAL REVENUES
Property Taxes
Specific Ow nership Taxes
Investment Earnings
Other Revenues
Transfers
Total General Revenues and Transfers
Total Revenues
PROGRAM EXPENSES
Public Safety
Change in Net Position
Net Position, Beginning
Prior Period Restatement
Net Position, Biding
215,135 $
5,727
71,465
292,327
5,521,402
369,205
8,789
7,271
345,770
76,528
88,825
511,123
5,034,753
5,437
13,385
5,906,667 5,053,575
6,198,994 5,564,698
4,914,209 4,411,138
1,284, 785 1,153, 560
9,943,082 8,575,993
213,529
$ 11,227,867 $ 9,943,082
M4
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
Property and specific ownership taxes account for most of the District's revenue, contributing about 95 cents for every
dollar raised (see Table 2).
The District expenses predominantly relate to fire protection, which includes administration, firefighting, prevention,
communications and vehicle and facility maintenance. Given that the District is a service organization providing fire
protection, the majority of the expenses are salaries and benefits.
Financial Analysis of District's Funds
The governmental funds monitor cash resources and expenditures. Capital outlay within these funds was $191,402
during 2016. This expenditure is not considered an expense on the government -wide statement of activities. Rather,
these costs are written off over time as depreciation expense.
As reflected on the reconciliation of governmental funds revenues and expenditures to the government -wide statement
of activities (page 8), the net difference between depreciation and capital outlay expenses was $278,373 for 2016.
General Fund
The General Fund was established and is continually funded to provide for the daily activities, salaries, expenses, and
operating costs of the District. This fund provides for functional areas of the organization - administration, firefighting,
fire prevention, training, communications, vehicle maintenance, and facility maintenance. The general fund also
provides for such other items as insurance, utilities, and other costs the District incurs. The primary funding source for
the general fund is taxation of real property. Other sources of income for the general fund include earnings on
investments, grants, donations, plan review fees, and specific ownership taxes. The primary projects or program efforts
for establishing needed funding during 2016 were:
1. Salaries and benefits for all existing full time personnel of the District.
2. Normal operational costs of the District.
General Fund Budgetary Highlights
The District's budget is prepared according to Colorado law and is based on accounting for certain transactions on a
basis of cash receipts and disbursements. The District's budget for the general fund anticipated that revenues would
exceed expenditures by $823. The actual results for the year show a $1,284,193 excess of expenditures over revenue
in the general fund for 2016.
It should be noted that the District's budget format is designed to establish and monitor divisional functions of the
District's operations to more closely align expenses with the areas of responsibility. These divisions are set up as cost
centers for accountability in each of the following areas:
• Administration
• Firefighting
• Rescue Services
• Prevention
• Health & Safety
• Repair/Maintenance/Building
• Fleet Maintenance
The District must maintain a 3% emergency reserve as a part of the TABOR Amendment ("Taxpayer
Bill of Rights"). At December 31, 2016, the District's TABOR reserve amounted to $174,000.
M5
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
Capital Assets and Debt Administration
Capital Assets
By the end of 2016, the District had invested $8,921,489, net of accumulated depreciation, in a broad range of capital
assets, including land, buildings, site improvements, vehicles and other equipment (Table 3). This amount represents
a net decrease of $278,373 or 3 percent from last year. Additional information on the District's capital assets can be
found in Note 3 to the financial statements. Total depreciation expense for the year was $365,917 while net additions
amounted to $87,544, due primarily to the purchase of a Zodiac, a Code Blue Simulator, and several AEDs.
Table 3
Capital Assets (Net of Depreciation)
Balance Balance
1/1/16 Additions Deletions 12/31/16
Governmental activities
Capital assets not being depreciated:
Land $ 942,382 $
Capital assets being depreciated:
Buildings 6,885,632
Vehicles 3,567,115 9,180
Equipment 744,206 78,364
Total capital assets beingdeprecia 11,196,953 87,544
Less accumulated depreciation for:
Buildings
Vehicles
Equipment
Total Accumulated Depreciation
Governmental activities capital assets, net
Long -Term Debt
$ - $ 942,382
(916,579) (141,145)
(1,724,389) (163,496)
(298,505) (61,276) _
(2,939,473) (365,917) _
$ 9,199,862 $ (278,373) $
6,885,632
3,576,295
822,570
11,284,497
(1,057,724)
(1,887,885)
(359,781)
(3,305,390)
$ 8,921,489
At year-end, the District had $0 in capital lease obligations and $2,370,000 in outstanding general obligation bonds as
shown below in Table 4. More detailed information about the District's 2012 refinance of 2008 certificates of participation
and principal payments on the other leases and the 2009 general obligation bonds are presented in Note 5 to the
financial statements.
M6
Windsor - Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2016
Table 4
Outstanding Long -Term Debt
Balance Balance Current Interest
1/1/16 Advances Repayments 12/31/16 Portion Expense
General Obligation Bonds Series 2009 $ 2,655,000 $ - $ 285,000 $ 2,370,000 $ 305,000 $ 102,184
Bond Premium 36,146 7,492 28,654 -
Certificates of Participation Series 2012 2,615,000 2,615,000 30,643
Discount on COP's (20,278) (20,278) - -
Copier Capital Lease 3,818 3,515 303 303 133
Net Pension Liability 382,164 20,647 402,811
Compensated Absences 121,844 10,859 132,703
Total Obligations $ 5,793,694 $ 31,506 $ 2,890,729 $ 2,934,471 $ 305,303 $ 132,960
During 2016, the District decreased its capital lease obligations by $2,615,000 and reduced its general obligation bonds
by $285,000. Colorado Revised Statute 32-1-1101(6) states that a fire district shall have a limit of bonded indebtedness
determined by a specific formula. The District's outstanding debt is below this limit.
Factors Bearing on the District's Future
At the time these financial statements were prepared and audited, the District was aware of the following circumstances
that could significantly affect its financial health in the future:
The District's budget for 2017 budgets a General Property Tax revenue of $5,803,278
(based on an assessed valuation for the District, of $768,269,640 and a mill levy of 7.194
mills in Weld and Larimer Counties) with a budget of $5,785,529 for 2017 General Fund
expenditures.
Contacting the District's Financial Management
This financial report is designed to provide the District's citizens, taxpayers, investors, and creditors with a general
overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have
questions about this report or need additional financial information, contact the District at 100 N. 7th Street, Windsor,
Colorado 80550.
M7
INTENTIONALLY LEFT BLANK
FINANCIAL SECTION
Holscher, Mayberry Q Company, LLC
Certified Public Accountants
Member of the American Institute of Certified Public Accountants
Governmental Audit Quality Center
and Private Company Practice Section
Board of Directors
Windsor -Severance Fire Protection District
Windsor, Colorado
Independent Auditors' Report
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of
the Windsor -Severance Fire Protection District, as of and for the year ended December 31, 2016, and the related
notes to the financial statements which collectively comprise the basic financial statements of the District, 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 of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal controls. 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
opinions.
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 each major fund of the Windsor -Severance Fire Protection
District, as of December 31, 2016, and the respective changes in financial position for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
8310 South Valley Highway — Suite 300 1 Voice (303) 993 — 2199
Englewood, Colorado 80112 Fax (720) 633 — 9763
Independent Auditors' Report
Page 2
Report on Summarized Comparative Information
We have previously audited the Windsor -Severance Fire Protection District's 2015 financial statements, and we
expressed an unmodified audit opinion on those audited financial statements in our report dated July 6, 2016. In our
opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2015
is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information - Management's Discussion and Analysis and Pension Schedules
(Unaudited)
Accounting principles generally accepted in the United States of America require that the management, discussion
and analysis on pages M1 -M7 and pension schedules on pages 31 — 35 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 of America, 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 sufficient evidence to express an opinion or provide any assurance.
Required Supplementary Information - Budgetary Comparison Schedules and Other Supplementary
Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. Accounting
principles generally accepted in the United States of America require that the schedule of funding progress and
budgetary comparison schedule on page 36 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. In addition, the budgetary comparison
schedules on pages 37-38 and listed as other supplementary information are presented for purposes of additional
analysis and are not a required part of the financial statements. The information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare the financial
statements. Such 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 basic financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial
statements as a whole.
14404- .1t417- .
Englewood, Colorado
June 5, 2017
INTENTIONALLY LEFT BLANK
Basic Financial Statements
Windsor -Severance Fire Protection District
Statement of Net Position
December 31, 2016
Governmental
Activities
ASSETS
Current Assets
Cash and Investments
Restricted Cash and Investments
Cash with Fiscal Agent
Accounts Receivable
Property Taxes Receivable
Prepaid Expenses
Total Current Assets
Noncurrent Assets
Capital Assets Not Being Depreciated
Capital Assets Being Depreciated, net
Net Pension Asset
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF FINANCIAL RESOURCES
Pension Contribution Timing Difference
Pension Difference between Projected and Actual Investment Earnings - Net
Pension Difference between Projected and Actual Experience - Net
Pension Change in Proportionate Share - net
Pension Changes in Assumptions - net
Total Deferred Outflows of Financial Resources
Total Assets and Deferred Outlfows
LIABILITIES
Current Liabilities
Accounts Payable
Payroll Liabilities Payable
Accrued Interest Payable
Total Current Liabilities
Noncurrent Liabilities
Due Within One Year
Due in Excess of One Year
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF FINANCIAL RESOURCES
Deferred Property Taxes
Pension Difference between Projected and Actual Experience - net
Total Deferred Inflows of Financial Resources
NET POSITION
Net Investment in Capital Assets
Restricted Net Position
Unrestricted Net Position
Total Net Position
Total Liabilities, Deferred Inflows and Net Position
The accompanying notes are an intergral part of the financial statements.
$ 3,941,145
390,251
28,353
4,697
5,927,003
61,277
10,352,726
942,382
7,979,107
6,323
8,927,812
19, 280, 538
232,299
454,940
58,480
35,137
99,311
880,167
20,160, 705
49,912
6,179
7,808
63,899
305,303
2,629,168
2,934,471
2,998,370
5,927,003
7,465
5,934,468
5,993,341
597,907
4,636,619
11, 227, 867
$ 20,160, 705
3
Windsor -Severance Fire Protection District
Statement of Activities
Year Ended December 31, 2016
Program Revenues
Functions/Programs
Governmental Activities:
Administration
Museum
Firefighting
Medical Rescue Services
Fire Prevention
Health and Safety
Communications
Building Maintenance
Equipment Maintenance
Total Governmental Activities
General Revenues:
Property Taxes
Specific Ownership Taxes
Investment Earnings
Other Revenues
Total General Revenues and Transfers
Change in Net Position
Net Position, Beginning
Net Position, Ending
Operating Capital Net
Charges for Grants and Grants and Governmental
Expenses Services Contributions Contributions Activities
$ 1,586,956 $ - $ $ $ (1,586,956)
2,991 - (2,991)
2,855,495 215,135 5,727 71,465 (2,563,168)
17,343 - (17,343)
86,672 (86,672)
22,431 - (22,431)
28,129 - (28,129)
219,359 - (219,359)
94,833 - (94,833)
$ 4,914,209 $ 215,135 $ 5,727 $ 71,465 (4,621,882)
The accompanying notes are an intergral part of the financial statements.
5,521,402
369,205
8,789
7,271
5,906,667
1,284,785
9,943,082
$ 11,227,867
4
Windsor -Severance Fire Protection District
Balance Sheet - Governmental Funds
December 31, 2016
(With Comparative Totals for December 31, 2015)
2016
Debt
General Service 2015
Fund Fund Total Total
ASSETS
Cash and Investments
Restricted Cash and Investments
Cash with Fiscal Agent
Accounts Receivable
Property Taxes Receivable
Prepaid Expenses
Total Assets
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE
LIABILITIES
Accounts Payable
Payroll Liabilities Payable
Total Liabilities
$ 3,941,145 $ - $ 3,941,145 $ 5,262,467
390,251 390,251 371,282
26,860 1,493 28,353 7,632
4,697 4,697 1,962
5,526,932 400,071 5,927,003 5,635,400
61,277 - 61,277 58,503
$ 9,560,911 $ 791,815 $ 10,352,726 $11,337,246
$ 49,912 $
6,179 _
56,091
$ 49,912 $ 67,213
6,179 1,256
56,091 68,469
DEFERRED INFLOWS OF FINANCIAL RESOURCES
Deferred Property Taxes 5,526,932 400,071 5,927,003 5,635,400
FUND BALANCE
Nonspendable for Prepaids
Restricted for Emergencies
Restricted for Debt Service
Restricted for IGA Maintenance
Unassigned
Total Fund Balance
Total Liabilities, Deferred Inflows and Fund Balance
61,277 61,277 58,503
174,000 174,000 154,216
391,744 391,744 371,296
32,163 - 32,163 -
3,710,448 3,710,448 5,107,865
3,977,888 391,744 4,369,632 5,633,377
$ 9,560,911 $ 791,815 $ 10,352,726 $ 11,337,246
The accompanying notes are an intergral part of the financial statements.
5
Windsor -Severance Fire Protection District
RECONCILIATION OF GOVERNMENTAL FUND BALANCE
TO GOVERNMENTAL ACTIVITIES NET POSITION
December 31, 2016
Fund Balance - Governmental Funds
Capital assets used in governmental activities are not
financial resources and are therefore not reported in the funds
Capital assets, not being depreciated
Capital assets, being depreciated
Accumulated depreciation
Certain long-term pension related costs and adjustments are not available to pay
or are payable currently and are therefore not reported in the funds
Net pension asset
Net pension liability
Contributions subsequent to measurement date
Difference between projected and actual investment returns on the pension plan
Amortization of the investment return difference
Difference between projected and actual pension plan experience
Amortization of the experience difference
Change in Assumptions
Amortization of Change in Assumptions
Difference between projected and actual pension plan experience
Amortization of the experience difference
Change in proportionate share of the net pension liability
Amortization of the change in proportion
Long-term liabilities are not due and payable in the current year and,
therefore, are not reported in the funds
Bonds payable
Capital leases payable
Bond premiums
Accrued interest payable
Accrued compensated absences
Total Net Position - Governmental Activities
The accompanying notes are an intergral part of the financial statements.
$ 942,382
11,284,497
(3,305,390)
6,323
(402,811)
232,299
583,499
(128,559)
74,235
(15,755)
110,096
(10,785)
(9,212)
1,747
36,902
(1,765)
$ 4,369,632
8,921,489
476,214
(2,370,000)
(303)
(28,654)
(7,808)
(132,703) (2,539,468)
$ 11,227,867
6
Windsor -Severance Fire Protection District
Statement of Revenues, Expenditures and Change in Fund Balance -
Governmental Funds
Year Ended December 31, 2016
(With Comparative Totals for the Year Ended December 31, 2015)
2016
Debt
General Service 2015
Fund Fund Total Total
REVENUES
Taxes
Grants and Contributions
Charges for Services
Interest
Other Revenues
Total Revenues
EXPENDITURES
Administration
Museum
Firefighting
Medical Rescue Services
Fire Prevention
Health and Safety
Communications
Building Maintenance
Equipment Maintenance
Debt Service
Capital Outlay
Total Expenditures
Revenues in Excess (Deficiency)
of Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Change in Fund Balance
Fund Balance, Beginning
Fund Balance, Ending $ 3,977,888 $ 391,744 $ 4,369,632 $ 5,633,377
$ 5,475,824 $ 414,783 $ 5,890,607 $ 5,034,753
77,192 77,192 170,553
215,135 - 215,135 345,770
8,640 149 8,789 5,437
7,271 - 7,271 8,185
5,784,062 414,932 6,198,994 5,564,698
1,364,936 6,528 1,371,464 1,276,936
2,991 - 2,991 2,308
2,351,199 2,351,199 2,248,158
17,343 17,343 11,593
85,088 85,088 83,958
22,431 - 22,431 12,682
28,129 28,129 22,542
219,359 219,359 145,360
94,833 - 94,833 146,826
2,690,544 387,956 3,078,500 604,436
191,402 - 191,402 435,636
7,068,255 394,484 7,462,739 4,990,435
(1,284,193) 20,448 (1,263,745) 574,263
4,118
(4,118)
(1,284,193) 20,448 (1,263,745) 574,263
5,262,081 371,296 5,633,377 5,059,114
The accompanying notes are an intergral part of the financial statements.
7
Windsor -Severance Fire Protection District
RECONCILIATION OF GOVERNMENTAL CHANGE IN FUND BALANCE TO
GOVERNMENTAL ACTIVITIES CHANGE IN NET POSITION
December 31, 2016
Change In Fund Balance - Governmental Funds $(1,263,745)
Capital assets used in governmental activities are expensed when purchased
in the funds and depreciated at the activity level
Capitalized Asset Purchases
Depreciation Expense
Pension expense at the fund level represents cash contributions to the defined
benefit plan. For the activity level presentation, the amount represents the actuarial
cost of the benefits for the fiscal year.
Change in contributions subsequent to the measurement date
Current year projected to actual investment return difference
Current year amortization of overall investment return differences
Change in net pension asset/liability
Current year projected to actual pension plan experience difference
Current year amortization of overall experience differences
Change in the changes of assumptions
Current year amortization of overall proportionate share differences
Repayments of long-term liabilities are expensed in the fund and reduce
outstanding liabilities at the activity level. In addition, proceeds from long-
term debt issuances are reported as revenues in the funds and increase
liabilities at the activity level
Principal payments on bonds payable
Principal payments on capital leases
Principal payments on certificates of participation
Change in accrued interest payable
Deferred gain on refunding
Amortization of premiums and discounts
Change in accrued compensated absences
Change in Net Position - Governmental Activities
The accompanying notes are an intergral part of the financial statements.
87,544
(365,917)
(182,265)
518,893
(115,637)
(473,033)
57,916
(9,897)
99,311
53,397
(278,373)
(51, 315)
285,000
3,514
2,615,000
10,986
(12,636)
(12,786)
(10,860) 2,878,218
$ 1.284.785
8
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Windsor -Severance Fire Protection District have been prepared in
conformity with Generally Accepted Accounting Principles (GAAP) as applied to government
units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting
body for establishing governmental accounting and financial reporting principles. The following
summary of significant accounting policies is presented to assist the reader in evaluating the
District's financial statements.
Reporting Entity
Windsor -Severance Fire Protection District is a political subdivision of the State of Colorado
governed by a five member board of directors. As required by generally accepted accounting
principles, these financial statements present the Windsor -Severance Fire Protection District
(the primary government) and its component units. Component units are legally separate
organizations for which the elected officials of the primary government are financially
accountable, or other organizations for which the nature and significance of their relationship
with the primary government are such that exclusion would cause the District's financial
statements to be misleading or incomplete. Based upon the foregoing criteria, there are no
component units included in the accompanying financial statements.
Nature of Operations
The District provides fire and rescue services for citizens in and around the communities of
Windsor and Severance, Colorado.
Basic Financial Statements
Basic financial statements are presented at both the government -wide and fund financial level.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent
on fees and charges for support.
Government -wide financial statements report information about the reporting government as a
whole. For the most part, the effect of interfund activity has been removed from these
statements. These statements focus on the sustainability of the District as an entity and the
change in aggregate financial position resulting from the activities of the year. These
aggregated statements consist of the Statement of Net Position and the Statement of Activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business -type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business
type activity. Taxes and other items not included among program revenues are reported instead
as general revenues.
9
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basic Financial Statements (Continued)
Fund financial statements report information at the individual fund level. Each fund is considered
to be a separate accounting entity. Funds are classified as governmental or fiduciary. Major
individual governmental funds are reported as separate columns in the fund financial
statements. Non -major funds are consolidated into a single column in the financial section of
the basic financial statements.
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 the related
cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized 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 the current period or soon enough thereafter to pay liabilities of
the current period. For this purpose, the District considers revenues to be available if they are
collected within 60 days after year end. Expenditures are recorded when the related fund liability
is incurred. 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, grant revenue, and interest associated with the current fiscal period 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.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred. An exception to this general rule is principal and interest on
general long-term debt which is recognized when due.
The District reports the following major governmental funds:
General Fund
This fund accounts for the financial resources of the District which are not accounted for in
any other fund. Principal sources of revenue are property taxes, intergovernmental
revenue and interest. Primary expenditures are for fire protection and general
administration.
10
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Debt Service Fund
The Debt Service fund was established to account for resources used for the payment of
principal and interest on long-term debt.
Budgets
The District adopts an annual budget for all funds which are all prepared on the modified
accrual basis of accounting. The District may authorize supplemental appropriations during the
budget year. All budgetary appropriations lapse at year-end.
Colorado statutes provide the following timetable which is followed in the adoption of budgets:
(1) Submission of the proposed budget to the local governing body by October 15 of each
year.
(2) Certification of mill levies to the Board of County Commissioners by December 15.
(3) Final adoption of budget and appropriations by December 31 of each year.
(4) Property taxes are due by April 30 of each year if paid in full, or in two installments '""
due February 28 and June 15 of each year.
Encumbrances
The District does not utilize encumbrance accounting.
Cash and Equivalents
The government's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
Investments
Investments are stated at fair value based on quoted market values, with the exception of
money market funds and external investment pools. These are stated at cost, which is equal
to fair value.
11
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Receivables
In the government -wide statements, receivables consist of all revenues earned at year-end
and not yet received.
Governmental funds report deferred inflows of resources, as further described below in
connection with receivables for revenues that are deferred for use during the next fiscal year.
At the end of the current year, these receivables consisted of property taxes levied in 2016
and due in 2015.
Capital Assets
Capital assets, which include land, buildings, vehicles and equipment, are reported in the
governmental activities column of the government -wide financial statements. Capital assets are
defined by the District as assets with an initial, individual cost of more than $5,000 and a useful
life of more than one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated or annexed capital assets are recorded at estimated market
value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of
Activities with accumulated depreciation reflected in the Statement of Net Position. Depreciation
on the remaining capital assets is provided on the straight-line basis over the following estimated
useful lives:
Buildings
Vehicles
Equipment
Deferred Outflows and Inflows of Resources
15-50 years
8-25 years
7-20 years
In addition to assets and liabilities, the statement of net position will sometimes report a separate
section for deferred outflows and inflows of resources. These separate financial statement
elements, deferred outflows of financial resources and deferred inflows of financial resources,
represent a usage or acquisition of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense) or inflow of resources (revenue) until a future
period. The government has two types of items, which arise under the full accrual and modified
accrual basis of accounting. Deferred property taxes are reported as a deferred inflow for both
the governmental activities presentation and governmental funds balance sheet.
12
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred Outflows and Inflows of Resources (Continued)
The unavailable property taxes are deferred and will be recognized as an outflow or inflow of
resources in the period that the amounts become recognizable as an expense or available,
respectively. Since property tax revenues are collected in arrears during the succeeding year, a
receivable and corresponding deferred inflow is recorded at December 31. As the tax is collected
in the succeeding year, the deferred inflow is recognized as revenue and the receivable is
reduced. The other item, deferred charge on refunding, is reported in the governmental activities
net position. The charge will be recognized proportionately as the outstanding principal is repaid.
Long -Term Obligation
Long-term debt is reported at face value, net of applicable discounts and deferred charge on
refunding. Costs related to the issuance of debt are expensed when incurred. Long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities
statements of net position.
Net Position/Fund Balances Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order
to calculate the amounts to report as restricted, committed, assigned, and unassigned fund
balance in the governmental fund financial statements a flow assumption must be made about
the order in which the resources are considered to be applied. It is the government's policy to
consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be
used for the same purpose, committed fund balance is depleted first, followed by assigned fund
balance. Unassigned fund balance is applied last.
Net Position/Fund Balances
In the government -wide financial statements, net position is either shown as net investment in
capital assets, with these assets essentially being nonexpendable; restricted when constraints
placed on the net position are externally imposed; or unrestricted.
For the governmental fund presentation, fund balances that are classified as "nonspendable"
include amounts that cannot be spent because they are either (a) not in spendable form or (b)
legally or contractually required to be maintained intact. The "not in spendable form" criterion
includes items that are not expected to be converted to cash, for example, inventories and
prepaid amounts.
Amounts are reported as "restricted" when constraints placed on the use of resources are either
(a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or
laws or regulations of other governments; or (b) imposed by law through constitutional provisions
or enabling legislation.
13
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Net Position/Fund Balances (Continued)
Amounts that can only be used for specific purposes pursuant to constraints imposed by formal
action of the government's highest level of decision -making authority, the Board of Directors,
reported and at their highest level of action are reported as "committed" fund balance. Those
committed amounts cannot be used for any other purpose unless the government removes or
changes the specified use by taking the same type of action (for example, legislation, resolution,
ordinance) it employed to previously commit those amounts.
Amounts that are constrained by the government's intent to be used for specific purposes, but
are neither restricted nor committed, are reported as "assigned" fund balance. Intent should be
expressed by (a) the governing body itself or (b) a body (a budget or finance committee, for
example) or official to which the governing body has delegated the authority to assign amounts to
be used for specific purposes.
All remaining governmental balances or deficits in other governmental funds are presented as
unassigned.
Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment and 2) grants and contributions (including special assessments) that are restricted to
meeting the operational or capital requirements of a particular function or segment. All taxes,
including those dedicated for specific purposes, and other internally dedicated resources are
reported as general revenues rather than as program revenues.
Property Taxes
Property taxes are levied on November 1 and attach as an enforceable lien on property on
January 1. Taxes are payable in full on April 30 or in two installments on February 28 and June
15. The County Treasurer's office collects property taxes and remits to the District on a monthly
basis.
Accumulated Unused Leave/Compensated Absences
The District permits an employee to carry over unused personal leave to the next calendar year.
The District will compensate an employee for any unused vacation and compensatory time at
their current rate of pay upon termination or resignation. The District does not payout unused
sick leave upon termination.
Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting
principles requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
14
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 2: CASH AND INVESTMENTS
The District's cash and investment balances as of the year ended December 31, 2016 are as
follows:
Restricted Cash and Investments
Unrestricted Cash and Investments
Total Cash and Investments
DEPOSITS
Custodial Credit Risk - Deposits
$ 390,251
1,935,008
$ 2,325,259
In the case of deposits, this is the risk that in the event of bank failure, the government's
deposits may not be returned to it. The District's deposit policy is in accordance with CRS 11-
10.5-101, The Colorado Public Deposit Protection Act (PDPA), which governs the investment
of public funds. PDPA requires that all units of local government deposit cash in eligible public
depositories. Eligibility is determined by state regulations. Amounts on deposit in excess of
federal insurance levels ($250,000) must be collateralized by eligible collateral as determined
by the PDPA. The financial institution is allowed to create a single collateral pool for all public
funds held. The pool is to be maintained by another institution, or held in trust for all the'''me
uninsured public deposits as a group. The market value of the collateral must be at least equal ':
to 102% of the uninsured deposits. The institution's internal records identify collateral by
depositor and as such, these deposits are considered uninsured but collateralized. The State
Regulatory Commissions for banks and financial services are required by statute to monitor the
naming of eligible depositories and December 31, 2016, all of the District's deposits as shown
below were either insured by federal depository insurance or collateralized under PDPA and
are therefore not deemed to be exposed to custodial credit risk.
At December 31, 2016 the District's deposits are categorized as follows:
FDIC Insured
PDPA Collateralized (not in District's name)
Total
Bank Carrying
Balance Balance
$ 367,115 $ 367,115
1,979,529 1,958,143
$ 2,346,644 $ 2,325,258
INVESTMENTS
The District did not hold any investments as of year-end. The following is a summary of
District policies related to investments.
15
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 2: CASH AND INVESTMENTS (Continued)
INVESTMENTS (Continued)
Credit Risk
Eligible investments shall conform to state law and may include any of the following:
• Obligations of the United States and certain U.S. government agency securities
• Certain international agency securities
• General obligation and revenue bonds of the U.S. local government entities
• Bankers' acceptances of certain banks
• Commercial paper
• Local government investment pools
• Written repurchase agreements collateralized by certain authorized securities
• Certain money market funds
• Guaranteed investment contracts
The District's investment policy limits its investments to those allowed by Colorado Revised
Statute 24-75-601.1 as described above.
The following are the major categories of assets and liabilities measured at fair value on a
recurring basis during the year ended December 31, 2016 using quoted market prices in active
markets (Level 1), significant observable inputs for similar assets (Level 2) and significant
unobservable inputs (Level 3):
Weighted Avg.
Level 1 Level 2 Level 3 Total Maturity (Yrs) Rating
Local Govt Pool -CSAFE $ - $2,006,138 $ $2,006,138 N/A AAAm
FPPA Investments - 2,721,030 2,721,030 N/A N/A
Total Investments $ - $4,727,167 $ $4,727,167 N/A
Following is a description of the valuation methodologies used for assets measured at fair
value on a recurring basis:
• Investment Pools — Valued at the proportionate share of ownership of the quoted
market prices of the underlying assets.
The District recognizes transfers between levels in the fair value hierarchy at the end of the
reporting period. During 2016, there were no changes in the methods or assumptions utilized to
derive the fair value of the District's assets and liabilities.
During the year ended December 31, 2016, the District invested funds in the Colorado Surplus
Asset Fund (CSAFE). As an investment pool, CSAFE operates under the Colorado Revised
Statutes (24-75-701) and are overseen by the Colorado Securities Commissioner. They invest
in securities that are specified by Colorado Revised Statutes (24-75-601). Authorized securities
include U.S. Treasuries, U.S. Agencies, commercial paper (rated Al or better) and bank
deposits (collateralized through PDPA). The pools operate similar to a 2a-7-
16
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 2: CASH AND INVESTMENTS (Continued)
INVESTMENTS (Continued)
like money market fund with a share value equal to $1.00 and a maximum weighted average
maturity of 60 days. These funds are rated AAAm by the Standard and Poor's Corporation.
Concentration of Credit Risk
The District places no limit on the amount that may be invested in any one issuer.
Interest Rate Risk
Colorado Statutes require that no investment may have a maturity in excess of five years from
the date of purchase unless authorized by the local board. The District does not have a formal
investment policy that limits investment maturities as a means of managing its exposure to fair
value losses arising from increasing interest rates, other than those contained in state statutes.
Custodial Credit Risk — Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the District will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. As of December 31, 2016, the District '''"4°
did not have any investments requiring safekeeping.
Restricted Cash and Investments
The District has restricted cash and investments for the year ended December 31, 2016 as
follows:
Restricted for Debt Repayment $ 390,251
17
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 3: CAPITAL ASSETS
Changes in governmental activities capital assets for the year ended December 31, 2016
was as follows:
Balance Balance
1/1/16 Additions Deletions 12/31/16
Governmental activities
Capital assets not being depreciated:
Land
Capital assets being depreciated:
Buildings
Vehicles
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Vehicles
Equipment
Total Accumulated Depreciation
Governmental activities capital assets, net
$ 942,382 $
6,885,632
3,567,115
744,206
11,196, 953
9,180
78,364
$
- $ 942,382
6,885,632
3,576,295
822,570
87,544 - 11,284,497
(916,579) (141,145)
(1,724,389) (163,496)
(298,505) (61,276) _
(2,939,473) (365,917) _
$ 9,199,862 $ (278,373) $
Depreciation has been allocated on the statement of activities as follows:
Firefighting
Admi ni strati on
Total Depreciation
NOTE 4: PENSION OBLIGATIONS
Plan Description
$ 228,667
137,250
$ 365,917
(1,057, 724)
(1,887,885)
(359, 781)
(3,305,390)
$ 8,921,489
The District contributes to the FPPA Statewide Hybrid Plan, a cost -sharing multiple -
employer defined benefit pension plan administered by the Colorado Fire and Police
Pension Association (FPPA). The Plan provides retirement benefits for members and
beneficiaries. The plan consists of a defined benefit component and a money purchase
component.
The Statewide Hybrid Plan -Defined Benefit Component is a cost -sharing multiple -employer
defined benefit pension plan. The plan is administered by the Fire & Police Pension
Association of Colorado (FPPA). FPPA issues a publicly available comprehensive annual
financial report that can be obtained on FPPA's website at http://www.fppaco.org.
The Fire and Police Pension Association (FPPA) administers an agent -multiple employer
public employee retirement system (PERS) established for the Windsor -Severance Fire
18
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Description of Benefits
FPPA Statewide Hybrid Plan. A member is eligible for normal retirement pension once the
member has completed twenty years of credited service and has attained the age of 50. The
annual normal retirement benefit is 1.5 percent of the average of the member's highest three
year's base salary for each year of credited service. Benefits paid to retired members are
evaluated and may be redetermined every October 1st. The amount of any increase is based
on the Board's discretion and can range from 0 to 3 percent.
A member is eligible for an early retirement at age 50 and after 10 years of service. The
early retirement benefit equals the normal retirement benefit reduced on an actuarially
equivalent basis. Upon termination, an employee may elect to have member contributions,
along with 5 percent as interest, returned as a lump sum distribution. Alternatively, a
member with at least five years of accredited service may leave contributions with the plan
and remain eligible for a retirement pension at age 55 equal to 1.5 percent of the member's
average highest three years' base salary for each year of credited service.
Contributions
The plan sets contribution rates at a level that enables all benefits to be fully funded at the
retirement date of all members. The members of the plan and their employers are currently
each contributing at the rate determined by the individual employer, however, the rate for
both employer and members must be at least 8 percent of the member's base salary. The
amount allocated to the Defined Benefit Component is set annually by the Fire & Police
Pension Association Board of Directors. Excess contributions fund the Money Purchase
Component of the plan. The Defined Benefit component contribution rate for the fiscal year
was 8 percent each from both the employer and employee.
Within the Money Purchase Component, members are always fully vested in their own
contributions, as well as the earnings on those contributions. Vesting in the employer's
contributions within the Money Purchase Component, and earnings on those contributions
occurs according to the vesting schedule set by the plan document at 20 percent per year
after the first year of service to be 100 percent vested after 5 years of service. Employer and
member contributions are invested in funds at the discretion of members.
19
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Basis of Presentation (Continued)
The underlying financial information used to prepare the Schedule of Employer
Contributions and Schedule of Collective Pension Amounts is based on FPPA's financial
statements.
FPPA follows the accounting principles and reporting guidelines as set forth by the
Governmental Accounting Standards Board. The financial statements are prepared using
the accrual basis of accounting and reflect the overall operations of FPPA. Employer
contributions in FPPA's financial statements are recognized in the period in which they are
due. Investments are reported at fair value.
Pension liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions. At December 31, 2015, the District reported a net
pension asset of $458,709 for its proportional share of the net pension asset. The net
pension liability was measured as of December 31, 2015, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of that date.
The District's proportion of the net pension liability was based on a projection of the District's
long-term share of contributions to the pension plan relative to the projected contributions of
all participating entities, actuarially determined. At December 31, 2015, the District's
proportion was 0.4065 percent, which was an increase of 0.0023 from its proportion
measured as of December 31, 2014.
For the year ended December 31, 2016, the District recognized pension income of $24,241.
At December 31, 2015, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred
Outflows
Deferred
Inflows
Difference between
expected and actual
experience
$ 51,136
$ (7,464)
Changes of assumptions or
other inputs
$ 99,311
$
Net difference between
projected and actual
earnings on pension plan
$ 321,793
$ -
Changes in proportion and
differences between
contributions recognized
and proportionate share of
contributions - Plan Basis
$ -
$ 35,137
Contributions subsequent
to the measurement date
$ 166,050
$
Total
$ 638,290
$ 27,673
20
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Basis of Presentation (Continued)
$166,050 reported as deferred outflows of resources related to pensions resulting from
District contributions subsequent to the measurement date will be recognized as a reduction
of the net pension liability in the year ended December 31, 2017. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Year Ended December 31:
Fiscal year
Total
2017
$ (101, 585)
2018
(101,585)
2019
(101, 583)
2020
(93,608)
2021
(19,142)
2022-2026
(82, 410)
Total
$ (499,913)
Actuarial Assumptions
The January 1, 2014 actuarial valuation was used to determine the Actuarially Determined
Contribution for the fiscal year ending December 31, 2014. The valuation used the following
actuarial assumption and other inputs:
Actuarial cost method
Entry Age, Normal
Amortization method
Level % of Payroll, Open
Amortization period
30 years
Asset valuation method
5 -Year Smoothed Fair Value
Long-term investment rate of return *
7.50%
Salary increase, including wage inflation
4.00-14.00%
Cost of Living Adjustments (COLA)
0.00%
* Includes inflation at
2.50%
The collective total pension liability as of December 31, 2014 is based upon the January 1,
2015 actuarial valuation. The collective total pension liability as of December 31, 2013 is
based upon the January 1, 2014 actuarial valuation.
Long-term expected rate of return on pension plan investments was determined using a
building-block method in which best -estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.
'7l
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Actuarial Assumptions (Continued)
Best estimates of arithmetic real rates of return for each major asset class included in the
Fund's target asset allocation as of December 31, 2014 are summarized in the following table:
Asset Class
Target
Allocation
10 Year Expected Geometric
Rate of Return
Global Equity
37.00%
6.50%
Equity Long/Short
10.00%
4.70%
Illiquid Alternatives
20.00%
8.00%
Fixed Income
16.00%
1.50%
Absolute Return
11.00%
4.10%
Managed Futures
4.00%
3.00%
Cash
2.00%
0.00%
Total
100.00%
Discount Rate
The discount rate used to measure the total pension liability was 7.50 percent. The projection
of cash flows used to determine the discount rate assumed that contributions from
participating employers will be made based on the actuarially determined rates based on the
Board's funding policy, which establishes the contractually required rates under Colorado
statutes. Based on those assumptions, the SWDB plan fiduciary net pension was projected to
be available to make all the projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
The following presents the District's proportionate share of the net pension liability calculated
using the discount rate of 7.5 percent, as well as what the District's proportionate share of the
net pension liability would be if it were calculated using a discount rate that is 1
percentage -point lower (6.5 percent) or 1 -percentage -point higher (8.5 percent) than the
current rate:
1% Decrease
(6.5%)
Current
Discount Rate
(7.5%)
1% Increase
(8.5%)
Proportionate share of the
net pension asset (liability)
$ (885,711)
$ 6,323
$ 746,234
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued FPPA financial report.
22
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Statewide Hybrid Pension Plan — Money Purchase Component
The District contributes to the Money Purchase Plan Portion of the FPPA Statewide Hybrid
Plan, a cost -sharing multiple -employer defined benefit pension plan administered by the
Colorado Fire and Police Pension Association (FPPA). The Plan provides retirement benefits
for Members and beneficiaries. Firemen that elected the FPPA money purchase plan are only
in the money purchase component of the Hybrid Plan.
Funding Policy
Plan Members and the District are required to contribute at a rate set by statute. The
contribution requirements of Plan Members and the District are established under Title 31,
Article 31, Part 5 of the CRS, as amended. The contribution rate for FPPA Plan Members and
the District is 10.0% of covered salary if hired before May 20, 2013. The basis of accounting
policy for the money purchase plan only portion of the FPPA Statewide Hybrid Plan coincides
with the FPPA Statewide Defined Benefit Plan.
FPPA Death and Disability
Death and disability coverage is provided for members through the Statewide Death and "",
Disability Plan which is also administered by the Colorado Fire and Police Pension Association. "''
This Statewide Death and Disability Plan is a non-contributory plan. All eligible employees of
the District are members of the Statewide Defined Benefit Plan and the Statewide Death and
Disability Plan. Title 31, Article 30 of the Colorado Revised Statutes (CRS), as amended,
assigns the authority to establish benefit provisions to the state legislature.
FPPA Deferred Compensation Plan
The District provides a deferred compensation plan for all eligible full-time employees. Plan
members can elect to defer a portion of their annual compensation into an individual retirement
account descripted in Code section 408(a). The annual deferral is subject to a limitation of
$15,000, adjusted for cost -of -living after 2006 to the extent as indexed pursuant to Code
457(e)(15).
Volunteer Firefighters Pension Plan
Plan Description
The Volunteer Firefighters Pension Plan is a defined benefit, agent multiple -employer
plan affiliated with the Colorado Fire and Police Pension Association (FPPA). Assets of the
Plan are commingled for investment purposes in the Fire and Police Member's Benefit Fund,
an agent multiple -employer defined benefit pension Plan administered by FPPA.
23
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Plan Description (Continued)
The District's plan is combined with other related volunteer and "Old Hire" plans for
administration purposes by FPPA. The Public Employee Retirement System (PERS)
provides retirement benefits as well as death and disability benefits. In 2016, the regular
benefit was $775 per month. A participant becomes fully vested after 20 years of active
service and reaching age 50. Pre -retirement death and disability benefits are only available
if incurred in the line of duty.
Description of Benefits
The Plan provides retirement benefits for Members and beneficiaries according to Plan
provisions as enacted and governed by the Firefighters Pension Board. Colorado Revised
Statutes (CRS), as amended, establishes basic benefit provisions under the Plan. In 2014, the
regular benefit was $725 per month. A participant becomes fully vested after 20 years of active
service and reaching age 50. Pre -retirement death and disability benefits are only available if
incurred in the line of duty. The plan also provides for a lump -sum burial benefit upon the death
of an active or retired firefighter. FPPA issues independent annual reports that may be obtained
by calling FPPA at (303) 770-3772 in the Denver metro area and 1-800-332-FPPA (3772) from
outside the metro area.
Contributions
The District funds the Plan per provisions in the Plan document and Colorado statutes. The
District shall contribute amounts required to fund the benefits provided by the Plan on a sound
actuarial basis. The District contributes to the Volunteer Fire Department Pension Fund at a
rate determined in the following manner: at least every three (3) years, the Volunteer Fire
Department Pension Fund shall have an actuarial study prepared to determine the funds
required. The required funds will be paid annually from general revenues of the District into the
Volunteer Fire Department Pension Fund. The Volunteer Firefighter's Pension Plan receives
contributions from the District in an amount not to exceed one half mill of property tax revenue.
As established by the legislature, the State of Colorado contributes up to ninety percent of the
District's contribution. The contributions are not actuarially determined.
The Plan is administered by a Retirement Board composed of seven members, the District's
five elected board members plus two members elected by the volunteers.
The financial statements of the volunteer Plan are prepared using the accrual basis of
accounting. Benefits and refunds are recognized when due and payable in accordance with the
terms of the Plan. The investments are presented at fair value except for short-term
investments that are recorded at cost, which approximates fair value.
Administrative costs of the Plan are paid from the pension fund (CRS 31-30.5-204(3)). There
are no investments in, loans to, or leases with parties related to the Plan.
24
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At December 31, 2015, the District reported a net pension liability of $382,164. The net pension
liability was measured as of December 31, 2014, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date.
For the year ended December 31, 2015, the District recognized pension expense of $11,987.
This expense is lower than normal as the 2014 pension contribution was not included in the
pension expense calculation as it was remitted subsequent to the measurement date. At
December 31, 2015, the District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows
Deferred Inflows
Difference between expected and
actual experience
$ 12,445
$
Net difference between projected
and actual earnings on pension
plan investments
$ 15,518
$
Contributions subsequent to the
measurement date
$ 132,498
Total
$ 160,461
$
$132,498 reported as deferred outflows of resources related to pensions resulting from District
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
Year Ended December 31:
2017
$ (8,981)
2018
(6,123)
2019
(3,878)
Total
$ (18,982)
Actuarial Assumptions
The January 1, 2014 actuarial valuation was used to determine the Actuarially Determined
Contribution for the fiscal year ending December 31, 2014. The valuation used the following
actuarial assumption and other inputs:
25
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Actuarial Assumptions (Continued)
Actuarial Method
Entry Age Normal
Amortization Method
Level Dollar, Open*
Amortization Period
20 Years*
Asset Valuation Method
5 -Year Smoothed Fair Value
Long-term investment Rate of Return
7.50%
Mortality
Pre -retirement: RP -2000 Combined
Mortality Table with Blue Collar
Adjustment, 40% muliplier for off
Post -retirement: RP -2000 Combined
Mortality Table with Blue Collar
Adjustment
Disabled: RP2000 Diabled Mortality
Salary increase, including wage inflation
N/A
Retirement Age
50% per year of eligibility until 100%
at age 65
Inflation
2.50%
* Plans that are heavily weighted with retiree
liabilities use an amortization period based on the
expected remaining lifetime of the participants
Long-term expected rate of return on pension plan investments was determined using a
building-block method in which best -estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of arithmetic real rates of return
for each major asset class included in the Fund's target asset allocation as of December 31,
2014 are summarized in the following table:
Asset Class
Target Allocation
Long -Term
Expected Rate of
Return
Global Equity
37.00%
6.50%
Equity Long/Short
10.00%
4.70%
Illiquid Alternatives
20.00%
8.00%
Fixed Income
16.00%
1.50%
Absolute Return
11.00%
4.10%
Managed Futures
4.00%
3.00%
Cash
2.00%
0.00%
Total
100.00%
Discount Rate
Projected benefit payments are required to be discounted to their actuarial present values
using a Single Discount Rate that reflects (1) a long-term expected rate of return on pension
plan investments (to the extent that the plan's fiduciary net position is projected to be sufficient
to pay benefits) and (2) tax-exempt municipal bond rate based on an index of 20 -year general
obligation bonds with an average AA credit rating as of the measurement date (to the extent
that the plan's projected fiduciary net position is not sufficient to pay benefits).
26
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Discount Rate (Continued)
For the purpose of this valuation, the long-term expected rate of return on pension plan
investments is 7.50%; the municipal bond rate is 3.65% (based on the weekly rate closest to
but not later than the measurement date of the "state & local bonds" rate from Federal Reserve
statistical release (H.15)); and the resulting Single Discount Rate is 7.50%.
Sensitivity of the District's Net Pension Liability to Changes in the Discount Rate
The following presents the District's net pension liability calculated using the discount rate of
7.50%, as well as what the District's net pension liability would be if it were calculated using a
discount rate that is 1 percentage -point lower (6.50%) or 1 -percentage -point higher (8.50%)
than the current rate:
1% Decrease
Current Discount
1% Increase
(6.5%)
Rate (7.5%)
(8.5%)
Net pension asset (liability)
$ (703,506)
$ (382,164)
$ (112,093)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued FPPA financial report.
Changes in net pension liability for the District's agent multiple -employer plan is listed below:
Schedule of Changes in District's Net Pension Liability
Total Pension Liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Net changes in total pension liability
Total Pension Liability -beginning
Total Pension Liability -ending (a)
plan Fiduciary Net Position
Contributions -employer
Contributions -State of Colorado (discretionary)
Net investment Income
Benefit payments,including refunds of employee contributions
Administrative expense
Other
Net change in plan fiduciarty net position
Plan fiduciary net position -beginning
2016
$ 33,305
222,586
17,546
(239,079)
34,358
3,068,836
$ 3,103,194
$
59,624
178,326
(239,079)
(4,463)
(5,592)
2,726,622
Plan fiduciary net position -ending(b) $ 2,721,030
District's net pension liability -ending (a )-(b)
$ 382,164
There were no changes in the benefit terms, assumptions or other inputs during the fiscal year.
27
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 4: PENSION OBLIGATIONS (Continued)
Membership
As of the December 31, 2015 measurement date, pension plan membership consisted of the
following:
Retirees and Beneficiaries 34
Inactive, Nonretired Members 13
Active Members 30
Total 77
NOTE 5: LONG-TERM OBLIGATIONS
The following is a schedule of changes in debt for the year ended December 31, 2016:
Balance Balance Current Interest
1/1/16 Advances Repayments 12/31/16 Portion Expense
General Obligation Bonds Series 2009 $ 2,655,000 $ - $ 285,000 $ 2,370,000 $ 305,000 $ 102,184
Bond Premium 36,146 7,492 28,654 - -
Certificates of Participation Series 2012 2,615,000 2,615,000 - 30,643
Discount on COP's (20,278) (20,278) - - -
Copier Capital Lease 3,818 3,515 303 303 133
Net Pension Liability 382,164 20.647 402,811
Compensated Absences 121,844 10,859 132,703
Total Obligations $ 5,793,694 $ 31,506 $ 2,890,729 $ 2,934,471 $ 305,303 $ 132,960
Bonds Payable
In May, 2009 the District issued $4,190,000 of general obligation bonds for capital
improvements. Bond principal payments are due annually on December 1, and interest is
due semi-annually on June 1 and December 1. Principal payments started at $100,000
beginning in 2009 and increase to $380,000 by 2023. Interest rates range from 2% to 4%.
Scheduled payments on the bonds are due as follows:
Year
2017
2018
2019
2020
2021
2022-2023
Principal Interest Total
$ 305,000 $ 93,694 $ 398,694
310,000 83,019 393,019
325,000 70,619 395,619
335,000 57,619 392,619
350,000 43,800 393,800
745,000 45,000 790,000
28
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 5: LONG-TERM OBLIGATIONS
Certificates of Participation
In 2012, the District issued $2,955,000 in certificates of participation to refinance their 2008
certificates of participation. Principal payments are due annually on November 15 and
interest is due semi-annually on May 15 and November 15. The 2012 certificates of
participation were paid off during the 2016 fiscal year.
Capital Leases Payable
In 2013, the District entered into a capital lease agreement for the purchase of an office
copier. The lease requires 48 monthly payments beginning February 2013 of $304,
including interest at 6.0%. Equipment with a value of $12,946 has been capitalized under
this lease.
Future minimum capital lease payments at December 31, 2016, are as follows:
Year
2017
Interest at 6%
Present Value of Payments
Payment
$ 304
(1)
$ 303
NOTE 6: FUND BALANCE RESERVATIONS/APPROPRIATIONS
Emergency Reserve
On November 3, 1992, the voters of Colorado approved Amendment 1, commonly known as
the TABOR Amendment, which adds 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, all local governments, and special districts.
The District's financial activity for the year ended December 31, 2016 will provide the basis
for calculation of future limitations adjusted for allowable increases tied to inflation and local
growth. Subsequent to December 31, 2016, revenue in excess of the District's "spending
limit" must be refunded unless voters approve the retention of such excess revenue. TABOR
generally requires voter approval for any new tax, tax increases, and new debt.
At a November 4, 1997 election, the electors of the District authorized the District to collect,
retain and expend the full amount of the revenues from all sources during 1997, as well as
the full amount of all revenues generated by all sources for each subsequent year. This
election authorized the spending of such revenues in each year without limitation under
Article X, Section 20 of the Colorado Constitution.
TABOR is extremely complex and subject to interpretation. Ultimate implementation may
depend upon litigation and legislative guidance.
29
WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
NOTE 6: FUND BALANCE RESERVATIONS/APPROPRIATIONS (Continued)
Emergency Reserve (Continued)
The Article requires an emergency reserve be set aside for 2016 in the amount of 3% or
more of its fiscal year spending. At December 31, 2016, the District has reserved the
following for emergencies:
General Fund $174.000
The District believes it is in compliance with the provisions of the TABOR Amendment.
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; injuries to firemen; and natural disasters. The
District purchases commercial insurance for all risks of loss. Settled claims have not
exceeded this insurance coverage in any of the past three fiscal years.
30
INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
(Pension Schedules Unaudited)
Windsor -Severance Fire Protection District
SCHEDULE OF THE DISTRICTS PROPORTIONATE SHARE OF THE
NET PENSION ASSET (LIABILITY)
FPPA Pension Plan
Last 10 Fiscal Years(')
12/31/16 12/31/15 12/31/14
District's proportion of the net pension asset (liability)
District's proportionate share of the net pension asset (liability)
District's covered -employee payroll
District's proportionate share of the net pension asset (liability) as a
percentage of covered -employee payroll
Plan fiduciary net position as a percentage of the total pension liability
0.358661%
$ 6,323
$ 1,738,688
0.406449% 0.383889%
$ 458,709 $ 343,269
$ 1,827,813 $ 1,667,388
0.36% 25.10%
100.10%
20.59%
106.83% 105.83%
Note: All amounts are as of plan calculation dates which are one fiscal year prior to the date shown.
(1) - Additional years will be added to this schedule as they become available.
See the accompanying Independent Auditors' Report.
31
Windsor -Severance Fire Protection District
SCHEDULE OF DISTRICT CONTRIBUTIONS
FPPA Pension Plan
Last 10 Fiscal Years(')
12/31/16 12/31/15 12/31/14
Contractually required contributions $ 139,095 $ 146,225 $ 133,391
Actual contributions (139,095) (146,225) (133,391)
Contribution deficiency (excess) $ - $ - $
District's covered -employee payroll $ 1,738,688 $ 1,827,813 $ 1,667,388
Contributions as a percentage of covered -employee payroll 8.00% 8.00% 8.00%
Note: All amounts are as of plan calculation dates which are one fiscal year prior to the date shown.
(1) - Additional years will be added to this schedule as they become available.
See the accompanying Independent Auditors' Report.
32
WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT
SCHEDULE OF CHANGES IN THE DISTRICT'S NET PENSION LIABILITY
Volunteer Pension Plan
Last 10 Fiscal Years")
12/31/2016 12/31/2015
Total Pension Liability
Service cost
Interest
Differences between expected and actual experience
Benefit payments
Net changes in total pension liability
Total Pension Liability - beginning
Total Pension Liability - ending (a)
Plan Fiduciary Net Position
Contributions - employer
Contributions - State of Colorado (Discretionary)
Net investment Income
Benefit payments,including refunds of employee contributions
Administrative expense
Net change in plan fiduciarty net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending(b)
District's net pension liability - ending (a) -(b)
$ 31,525 $ 33,305
224,809 222,586
- 17,546
(246,898) (239,079)
9,436 34,358
3,103,194 3,068,836
$ 3,112,630 $ 3,103,194
$ 132,498 $
59,624 59,624
49,940 178,326
(246,898) (239,079)
(6,375) (4,463)
(11,211) (5,592)
2,721,030 2,726,622
$ 2,709,819 $ 2,721,030
$ 402,811 $ 382,164
Note: There were no factors that significantly affected trends in the amounts reported.
(1) - Additional years will be added to this schedule as they become available.
See the accompanying Independent Auditors' Report.
33
WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT
SCHEDULE OF THE DISTRICT'S NET PENSION LIABILITY AND RELATED RATIOS
Volunteer Pension Plan
Last 10 Fiscal Years(1)
12/31/2016 12/31/2015 12/31/2014
Total Pension Liability
Plan's Fiduciary Net Position
Net Pension Liability
Plan's Fiduciary Net Position as % of Total Pension Liability
Covered -Employee Payroll
Net Pension Liability as a % of Covered -employee Payroll
$ 3,112,630 $ 3,103,194 $ 3,068,836
(2,709,819) (2,721,030) (2,726,622)
$ 402,811 $ 382,164 $ 342,214
87.06%
$
N/A
Note: There were no factors that significantly affected trends in the amounts reported.
(1) - Additional years will be added to this schedule as they become available.
See the accompanying Independent Auditors' Report.
87.68% 88.85%
$ - $
N/A N/A
34
WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT
SCHEDULE OF ACTUARIAL DETERMINED AND ACTUAL CONTRIBUTIONS
Volunteer Pension Plan
Last 10 Fiscal Years(1)
2015 2014
Actuarially determined contributions $ 75,406 $ 75,406
Actual contributions (2) 192,122 59,624
Contribution deficiency (excess) $ 116,716 $ (15,782)
District's covered -employee payroll $ - $
Contributions as a percentage of covered -employee payroll N/A N/A
Note: See Note 4 of the Basic Financial Statements for significant methods and assumptions used in
calculating the actuarially determined calculations. There were no factors that significantly affected
trends in the amounts reported.
(1) - Additional years will be added to this schedule as they become available.
(2) - Includes both employer and State of Colorado Discretionary Payment.
See the accompanying Independent Auditors' Report.
35
Required Supplementary Information
Windsor -Severance Fire Protection District
Budgetary Comparison Schedule
General Fund
Year Ended December 31, 2016
(With Comparative Totals for the Year Ended December 31, 2015)
2016
Original & Variance
Final w/ Final 2015
Budget Actual Budget Actual
REVENUES
Taxes
Grants and Contributions
Charges for Services
Interest
Other Revenues
Total Revenues
$ 5,512,549 $ 5,475,824 $ (36,725) $ 4,610,732
80,000 77,192 (2,808) 170,553
236,750 215,135 (21,615) 345,770
8,640 8,640 5,285
7,271 7,271 8,185
5,829,299 5,784,062 (45,237) 5,140,525
EXPENDITURES
Current
Administration 1,491, 822 1,364,936 126,886 1,270,246
Museum 2,991 (2,991) 2,308
Firefighting 2,524,349 2,351,199 173,150 2,248,158
Medical Rescue Services 57,000 17,343 39,657 11,593
Fire Prevention 88,526 85,088 3,438 83,958
Health and Safety 15,250 22,431 (7,181) 12,682
Communications 24,500 28,129 (3,629) 22,542
Building Maintenance 217,900 219,359 (1,459) 145,360
Equipment Maintenance 156,100 94,833 61,267 146,826
Debt Service
Principal
Interest
Capital Outlay
Total Expenditures 8,319,476 7,068,255 1,251,221 4,586,339
Excess (Deficiency) Of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Transfers In 4,118
Change in Fund Balance - Budget Basis (2,490,177) (1,284,193) 1,205,984 558,304
Fund Balance, Beginning 2,490,177 5,262,081 2,771,904 4,703,777
Fund Balance, Ending $ - $ 3,977,888 $ 3,977,888 $ 5,262,081
2,923,648 2,649,520 274,128 123,311
81,881 41,024 40,857 84,619
738,500 191,402 547,098 434,736
(2,490,177) (1,284,193) 1,205,984 554,186
See the accompanying Independent Auditors' Report.
36
Other Supplementary Information
Windsor -Severance Fire Protection District
Budgetary Comparison Schedule
Debt Service Fund
Year Ended December 31, 2016
(With Comparative Totals for the Year Ended December 31, 2015)
2016
Variance
Final w/ Final 2015
Budget Actual Budget Actual
REVENUES
Taxes
Interest
Total Revenues
EXPENDITURES
Current
Administration
Debt Service
Principal
Interest
Total Expeditures
Change in Fund Balance
Fund Balance, Beginning
Fund Balance, Ending
See the accompanying Independent Auditors' Report.
$ 23,447 $ 414,783 $ 391,336 $ 424,021
120 149 29 149
23,567 414,932 391,365 424,170
6,609 6,528 81 6,690
285,000 285,000 285,000
102,956 102,956 - 111,506
394,565 394,484 81 403,196
(370,998) 20,448 391,446 20,974
371,296 371,296 350,322
298 $ 391,744 $ 391,446 $ 371,296
37
Windsor -Severance Fire Protection District
Budgetary Comparison Schedule
Capital Projects Fund
Year Ended December 31, 2016
(With Comparative Totals for the Year Ended December 31, 2015)
2016
Variance
Final w/ Final 2015
Budget Actual Budget Actual
REVENUES
Interest
EXPENDITURES
Current
Capital Outlay
Excess (Deficiency) Of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Transfers Out
Change in Fund Balance
Fund Balance, Beginning
Fund Balance, Ending
$
$ $ $ 3
900
(897)
(4,118)
(5,015)
5,015
$ $ $ $
See the accompanying Independent Auditors' Report.
38
Hello