HomeMy WebLinkAbout20162884.tiffSEP 0 9 2016
CARBON VALLEY PARK
AND RECREATION DISTRICT
Weld County, Colorado
FINANCIAL STATEMENTS
December 31, 2015
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TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT I
BASIC FINANCIAL STATEMENTS
Government -wide Financial Statements:
Statement of Net Position 1
Statement of Activities 2
Fund Financial Statements:
Balance Sheet - Governmental Funds 3
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 4
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 5
General Fund - Statement of Revenues, Expenditures and Change in
Fund Balance - Budget and Actual 6
Special Revenue Fund - Conservation Trust Fund - Statement of Revenues,
Expenditures and Change in Fund Balances - Budget and Actual 7
Notes to Financial Statements 8
REQUIRED SUPPLEMENTARY INFORMATION 32
Schedule of the Proportionate Share of the Net Position Liability - PERA Pension
Plan - Local Government Division Trust Fund 33
Schedule of Employer Contributions - PERA Pension Plan - Local Government
Division Trust Fund 34
SUPPLEMENTARY INFORMATION 35
Debt Service Fund - Schedule of Revenues, Expenditures and Change in
Fund Balances - Budget and Actual 36
OTHER INFORMATION 37
Schedule of Debt Service Requirements to Maturity 38
Summary of Assessed Valuation, Mill Levy and
Property Taxes Collected 41
Dazzio & Associates, PC
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Carbon Valley Park and Recreation District
Weld County, Colorado
We have audited the accompanying financial statements of the governmental activities and each
major fund of the Carbon Valley Park and Recreation District as of and for the year December 31,
2015, 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 of America; 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 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 from 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 opinions.
8200 South Quebec Street, Suite A3259, Centennial, Colorado 80112
303-905-0809 • info@dazziocpa.com
• Member American Institute of Certified Public Accountants • Member Colorado Society of Certified Public Accountants •
Opinions
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 Carbon
Valley Park and Recreation District, as of December 31, 2015, and the respective changes in
financial position and the budgetary comparisons for the General Fund and the Special Revenue
Fund — Conservation Trust Fund for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Management has omitted the Management's Discussion and Analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing 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. Our opinion on the basic financial statements is not
affected by this missing information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise Carbon Valley Park and Recreation District's basic financial statements. The
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual, for the Debt
Service Fund (the Supplementary Information) and the Schedule of Debt Service Requirements to
Maturity and the Summary of Assessed Valuation, Mill Levy and Property Taxes Collected (the Other
Information) are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The Supplementary Information was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic 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
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the Supplemental
Information is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The Other Information has not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
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August 26, 2016
11
BASIC FINANCIAL STATEMENTS
CARBON VALLEY PARK AND RECREATION DISTRICT
STATEMENT OF NET POSITION
December 31, 2015
Governmental
Activities
ASSETS
Cash and investments
Cash and investments - Restricted
Receivable - County Treasurer
Property taxes receivable
Deposit
Capital assets, nondepreciable
Capital assets, net
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Cost of bond refunding
Pension contributions subsequent to measurement date
Pension related deferrals
Total deferred outflows of resources
LIABILITIES
Accounts payable
Payroll liabilities
Compensated absences
Accrued interest payable
Noncurrent liabilities
Due within one year
Due in more than one year
Net pension liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Property tax revenue
Pension related deferrals
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Emergency reserves
Debt service
Conservation Trust Fund
Unrestricted
Total net position
These financial statements should be read only in connection with
the accompanying notes to financial statements.
1
$ 191,446
988,260
43
4,456,155
2,500
175,847
9,148,318
14, 962, 569
312,657
192,312
119,143
624,112
84,073
18,640
28,056
26,982
665,962
5,501,530
2,196,983
8,522,227
4,456,155
191,694
4,647,849
3,469,330
91,600
849,440
20,252
(2,014,016)
$ 2,416,606
CARBON VALLEY PARK AND RECREATION DISTRICT
STATEMENT OF ACTIVITIES
Year Ended December 31, 2015
Program Revenues
Net (Expense)
Revenue and
Changes in
Net Position
Charges Operating Capital
for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Primary government:
Administrative $ 1,820,082 $ 583,661 $ - $ $ (1,236,421)
Swimming pool, recreation and sports program 1,308,549 568,084 130,765 53,510 (556,190)
Interest and other costs related to long-term debt 261,779 - - - (261,779)
Total governmental activities $ 3,390,410 $ 1,151,745 $ 130,765 $ 53,510 (2,054,390)
General revenues:
Property taxes
Specific ownership taxes
Net investment income
Other income
Total general revenues
Change in net position
Net position - Beginning as restated
Net position - Ending
These financial statements should be read only in connection with
the accompanying notes to financial statements.
2
2,552,913
175,844
3,698
27,228
2,759,683
705,293
1,711,313
$ 2,416,606
CARBON VALLEY PARK AND RECREATION DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2015
Debt Conservation Total
General Service Trust Governmental
Fund Fund Fund Funds
ASSETS
Cash and investments
Cash and investments - Restricted
Receivable - County Treasurer
Property taxes receivable
Deposit
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Payroll liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Property tax revenue
Total deferred inflows of resources
FUND BALANCE
Nonspendable
Restricted for:
Emergency reserves
Debt service
Conservation Trust Fund
Unassigned
Total fund balances
TOTAL LIABILITIES DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
$ 191,446 $ - $ - $ 191,446
91,600 876,408 20,252 988,260
29 14 43
2,963,406 1,492,749 4,456,155
2,500 - 2,500
$ 3,248,981 $ 2,369,171 $ 20,252 $ 5,638,404
$ 84,073 $
18,640
$ 84,073
18,640
102,713 102,713
2,963,406
2,963,406
91,600
91,262
1,492,749 4,456,155
1,492,749 4,456,155
876,422
20,252
91,600
876,422
20,252
91,262
182,862 876,422 20,252 1,079,536
$ 3,248,981 $ 2,369,171 $ 20,252
Amounts reported for governmental activities in the statement of net position
are different because:
Deferred outflows of resources are not available to pay for current
period expenditures and, therefore, are not reported in the funds.
Cost of bond refunding
Pension contributions subsequent to measurement date
Pension related deferrals
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.
Long-term liabilities, including bonds and capital leases payable, are not due
and payable in the current period and, therefore, are not reported in the funds.
Compensated absences
Accrued interest payable
Bonds payable
Bond premium
Capital lease payable
Net pension liability
Deferred inflows of resources are not available to report as current period
revenues and, therefore, are not reported in the funds.
Pension related deferrals
Net position of governmental activities
These financial statements should be read only in connection with
the accompanying notes to the financial statements.
312,657
192,312
119,143
9,324,165
(28,056)
(26,982)
(4,530,000)
(198, 330)
(1,439,162)
(2,196,983)
(191,694)
$ 2,416,606
3
CARBON VALLEY PARK AND RECREATION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended December 31, 2015
Conservation Total
General Debt Service Trust Governmental
Fund Fund Fund Funds
REVENUES
Property taxes
Specific ownership taxes
Lottery fund income
Net investment income
Charges for services
Recreation revenue
Operations revenue
Program revenue
Operating revenue
Grants and donations
Other income
Total revenues
EXPENDITURES
Administrative
Operations
Program
Recreation
Debt service
Lease principal
Lease interest
Bond principal
Bond interest
County treasurer fees
Paying agent fees
Capital improvements
Ballfield maintenance
Equipment and maintenance
Total expenditures
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Lease issuance
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
OF YEAR
FUND BALANCES - END OF YEAR
$ 1,699,532 $ 853,381 $
117,535 58,309
2,214 1,290
63,830
475,677
504,254
107,984
53,510
27,228
3,051,764 912,980
624,541
1,012,489
557,914
599,178
118,763
58,378
495,000
171,088
12,815
200
123,234
3,094,497 679,103
130,765
194
$ 2,552,913
175,844
130,765
3,698
63,830
475,677
504,254
107,984
53,510
27,228
130,959 4,095,703
58,225
37,546
69,008
624,541
1,012,489
557,914
599,178
118,763
58,378
495,000
171,088
12,815
200
181,459
37,546
69,008
164,779 3,938,379
(42,733) 233,877 (33,820) 157,324
103,234 - 103,234
103,234 103,234
60,501 233,877 (33,820) 260,558
122,361 642,545 54,072 818,978
$ 182,862 $ 876,422 $ 20,252 $ 1,079,536
These financial statements should be read only in connection with
the accompanying notes to the financial statements.
4
CARBON VALLEY PARK AND RECREATION DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2015
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - Total governmental funds $ 260,558
Governmental funds report capital outlays as expenditures. In the
statement of activities, capital outlay is not reported as an
expenditure. However, the statement of activities will report as
depreciation expense the allocation of the cost of any depreciable
asset over the estimated useful life of the asset.
Capital outlay
Depreciation expense
The issuance of long-term debt (e.g., bonds, leases) 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. Also, governmental
funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.
Principal payment - Bonds
2015 Lease payable
Amortization of bond premium
Amortization of cost of refunding
Principal payment - Capital lease
Some revenues/expenses reported in the statement of activities do
not require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds.
Compensated absences - Change in liability
Pension expense
Employer contribution
Accrued interest on liabilities - Change in liability
Changes in net position of governmental activities
These financial statements should be read only in connection with
the accompanying notes to financial statements.
5
136,557
(266,411)
495,000
(103,234)
42,874
(67,588)
122,467
(28, 056)
(80,898)
192,312
1,712
$ 705,293
CARBON VALLEY PARK AND RECREATION DISTRICT
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
Year Ended December 31, 2015
Budgeted Variance with
Amounts Final Budget
Original/ Actual Positive
Final Amounts (Negative)
REVENUES
Property taxes
Specific ownership taxes
Net investment income
Charges for services
Recreation revenue
Operations revenue
Program revenue
Operating revenue
Grants and donations
Other income
Total revenues
EXPENDITURES
Administrative
Operations
Program
Recreation
Debt service
Lease - principal
Lease - interest
Capital outlay
Total expenditures
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Line of credit proceeds
Lease issuance
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
$ 1,738,971 $ 1,699,532 $ (39,439)
121,730 117,535 (4,195)
1,000 2,214 1,214
89,000 63,830 (25,170)
516,500 475,677 (40,823)
338,500 504,254 165,754
38,000 107,984 69,984
14,600 53,510 38,910
65,000 27,228 (37, 772)
2,923,301 3,051,764 128,463
852,362
1,105,540
445,160
846,817
3,249,879
(326, 578)
200,000
200,000
(126,578)
216,978
624,541
1,012,489
557,914
599,178
118,763
58,378
123,234
227,821
93,051
(112,754)
247,639
(118,763)
(58,378)
(123,234)
3,094,497 155,382
(42,733) 283,845
103,234
103,234 (96,766)
(200,000)
103,234
60,501
122,361
187,079
(94,617)
$ 90,400 $ 182,862 $ 92,462
These financial statements should be read only in connection with
the accompanying notes to financial statements.
6
CARBON VALLEY PARK AND RECREATION DISTRICT
SPECIAL REVENUE FUND - CONSERVATION TRUST FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
Year Ended December 31, 2015
Budgeted Variance with
Amounts Final Budget
Original/ Actual Positive
Final Amounts (Negative)
REVENUES
Lottery fund income
Net investment income
Total revenues
EXPENDITURES
Ballfield maintenance
Contingency
Capital improvements
Equipment and maintenance
Total expenditures
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
$ 125,000 $ 130,765 $ 5,765
90 194 104
125,090
130,959 5,869
50,150 37,546 12,604
150,000 - 150,000
10,000 58,225 (48,225)
- 69,008 (69,008)
210,150 164,779 45,371
(85,060) (33,820) 51,240
100,920 54,072 (46,848)
$ 15,860 $ 20,252 $ 4,392
These financial statements should be read only in connection with
the accompanying notes to financial statements.
7
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 1 - DEFINITION OF REPORTING ENTITY
Carbon Valley Park and Recreation District (the District), a quasi -municipal corporation and
political subdivision of the State of Colorado, was organized in 1983 and is governed pursuant
to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes).
The District operates under a Service Plan approved by the County of Weld County, Colorado.
The District's service area is located in Weld County, Colorado including the communities of
Frederick, Firestone, Dacono and the surrounding rural area. The District was established to
construct and maintain parks and recreation facilities.
The District follows the Governmental Accounting Standards Board (GASB) accounting
pronouncements which provide guidance for determining which governmental activities,
organizations and functions should be included within the financial reporting entity. GASB
pronouncements set forth the financial accountability of a governmental organization's elected
governing body as the basic criterion for including a possible component governmental
organization in a primary government's legal entity. Financial accountability includes, but is not
limited to, appointment of a voting majority of the organization's governing body, ability to
impose its will on the organization, a potential for the organization to provide specific financial
benefits or burdens and fiscal dependency.
The District is not financially accountable for any other organization, nor is the District a
component unit of any other primary governmental entity.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant accounting policies of the District are described as follows:
Government -wide and Fund Financial Statements
The government -wide financial statements include the statement of net position and the
statement of activities. These financial statements include all of the activities of the District. The
effect of interfund activity has been removed from these statements. Governmental activities are
normally supported by taxes.
The statement of net position reports all financial and capital resources of the District. The
difference between the sum of assets and deferred outflows and the sum of liabilities and
deferred inflows is reported as net position.
The statement of activities demonstrates the degree to which the direct and indirect expenses of
a given function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. 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 that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues. Separate financial statements are provided for the governmental funds. Major
individual governmental funds are reported as separate columns in the fund financial
statements.
8
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 2 - 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.
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 government considers revenues to be available if they
are collected within 60 days of the end of the current fiscal period. The major sources of
revenue susceptible to accrual are property taxes and specific ownership taxes. All other
revenue items are considered to be measurable and available only when cash is received by
the District. Expenditures, other than interest on long-term obligations, are recorded when the
liability is incurred or the long-term obligation is due.
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 general government, except those required to be accounted for in another
fund.
The Special Revenue — Conservation Trust Fund is used to account for conservation trust
revenues and expenditures incurred for eligible costs.
The Debt Service Fund accounts for the resources accumulated and payments made for
principal and interest on long-term debt of the governmental funds.
Budgets
In accordance with the State Budget Law, the District's Board of Directors holds public hearings
in the fall of each year to approve the budget and appropriate the funds for the ensuing year.
The appropriation is at the total fund expenditures and other financing uses level and lapses at
year end. The District's Board of Directors can modify the budget by line item within the total
appropriation without notification. The appropriation can only be modified upon completion of
notification and publication requirements. The budget includes each fund on its basis of
accounting unless otherwise indicated.
Pooled Cash and Investments
The District follows the practice of pooling cash and investments of all funds to maximize
investment earnings. Except when required by trust or other agreements, all cash is deposited
to and disbursed from a single bank account. Cash in excess of immediate operating
requirements is pooled for deposit and investment flexibility. Interest earnings are allocated
periodically to the participating funds based upon each fund's average equity balance in total
cash and investments.
9
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investments are carried at fair value.
Property Taxes
Property taxes are levied by the District's Board of Directors. The levy is based on assessed
valuations determined by the County Assessor generally as of January 1 of each year. The levy
is normally set by December 15 by certification to the County Commissioners to put the tax lien
on the individual properties as of January 1 of the following year. The County Treasurer collects
the determined taxes during the ensuing calendar year. The taxes are payable by April or if in
equal installments, at the taxpayer's election, in February and June. Delinquent taxpayers are
notified in August and generally sales of the tax liens on delinquent properties are held in
November or December. The County Treasurer remits the taxes collected monthly to the
District.
Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred inflow of
resources in the year they are levied and measurable. The unearned property tax revenues are
recorded as revenue in the year they are available or collected.
Capital Assets
Capital assets, which include property, plant and equipment, are reported in the governmental
activities columns in the government -wide financial statements. Capital assets are defined by
the District as assets with an initial, individual cost of more than $5,000. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized. Improvements are capitalized and
depreciated over the remaining useful lives of the related fixed assets, as applicable.
Depreciation expense has been computed using the straight-line method over the following
estimated economic useful lives:
Building and improvements
Equipment
Vehicles
Original Issue Discount/Premium
7-50 years
5-10 years
7 years
In the government -wide financial statements, bond discounts and premiums are deferred and
amortized over the life of the bonds using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance
costs, whether or not withheld from the actual debt proceeds received, are reported as
expenditures.
10
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences
Obligations associated with the District's vacation policy are recorded as liabilities and expenses
when earned to the extent that such benefits vest to the employee, in the government -wide
financial statements. The amount of accrued and unpaid balance due under this policy is
considered a long-term liability. The District has reported a liability for accrued compensated
absences of $28,056 at December 31, 2015.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The government
has three items that qualify for reporting in this category. Accordingly, the items, cost of bond
refunding, pension contributions subsequent to measurement date, and pension related
deferrals are deferred and recognized as outflows of resources in the period that the amounts
become available.
In addition to liabilities, the statement of net position reports a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. The government has two items
that qualify for reporting in this category. Accordingly, the items, property tax revenue and
pension related deferrals are deferred and recognized as inflows of resources in the period that
the amounts become available.
Pensions
The District participates in the Local Government Division Trust Fund (LGDTF), a cost -sharing
multiple -employer defined benefit pension fund administered by the Public Employees'
Retirement Association of Colorado (PERA). The net pension liability, deferred outflows of
resources and deferred inflows of resources related to pensions, pension expense, information
about the fiduciary net position and additions to/deductions from the fiduciary net position of the
LGDTF have been determined using the economic resources measurement focus and the
accrual basis of accounting. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Equity
Net Position
For government -wide presentation purposes when both restricted and unrestricted resources
are available for use, it is the government's practice to use restricted resources first, then
unrestricted resources as they are needed.
11
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance
Fund balance for governmental funds should be reported in classifications that comprise a
hierarchy based on the extent to which the government is bound to honor constraints on the
specific purposes for which spending can occur. Governmental funds report up to five
classifications of fund balance: nonspendable, restricted, committed, assigned, and unassigned.
Because circumstances differ among governments, not every government or every
governmental fund will present all of these components. The following classifications describe
the relative strength of the spending constraints:
• Nonspendable fund balance — The portion of fund balance that cannot be spent because
it is either not in spendable form (such as prepaid amounts or inventory) or legally or
contractually required to be maintained intact.
• Restricted fund balance — The portion of fund balance that is constrained to being used
for a specific purpose by external parties (such as bondholders), constitutional
provisions, or enabling legislation.
• Committed fund balance — The portion of fund balance 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. The constraint may be
removed or changed only through formal action of the Board of Directors.
• Assigned fund balance — The portion of fund balance that is constrained by the
government's intent to be used for specific purposes, but is neither restricted nor
committed. Intent is expressed by the Board of Directors to be used for a specific
purpose. Constraints imposed on the use of assigned amounts are more easily removed
or modified than those imposed on amounts that are classified as committed.
• Unassigned fund balance — The residual portion of fund balance that does not meet any
of the criteria described above.
If more than one classification of fund balances is available for use when an expenditure is
incurred, it is the District's practice to use the most restrictive classification first.
12
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Prior Period Restatement
The District's beginning net position balance has been restated to account for GASB 68
according to the following table:
Governmental
Activities
Net position, December 31,2014 as previously reported
Cumulative affect of application of GASB 68 net pension asset
Cumulative affect of application of GASB 68 net pension liability
Net position, December 31, 2014 as Restated
NOTE 3 - CASH AND INVESTMENTS
$ 3,899,949
170,307
(2,358,943)
$ 1,711,313
Cash and investments as of December 31, 2015, are classified in the accompanying financial
statements as follows:
Statement of net position:
Cash and investments
Cash and investments - restricted
Total cash and investments
Cash and investments as of December 31, 2015, consist of the following:
Deposits with financial institutions
Investments
Total cash and investments
Cash Deposits
$ 191,446
988,260
$ 1.179.706
$ 642,792
536,914
$ 1,179.706
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government
deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts
on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is
determined by the PDPA. PDPA allows the institution to create a single collateral pool for all
public funds. The pool for all the uninsured public deposits as a group is to be maintained by
another institution or held in trust. The market value of the collateral must be at least 102% of
the aggregate uninsured deposits.
The State Commissioners for banks and financial services are required by statute to monitor the
naming of eligible depositories and reporting of the uninsured deposits and assets maintained in
the collateral pools.
At December 31, 2015, the District's cash deposits had a bank balance of $722,219 and a
carrying balance of $642,792.
13
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
Investments
The District has not adopted a formal investment policy; however, the District follows state
statutes regarding investments.
The District generally limits its concentration of investments to those noted with an asterisk (*)
below, which are believed to have minimal credit risk, minimal interest rate risk and no foreign
currency risk. Additionally, the District is not subject to concentration risk disclosure
requirements or subject to investment custodial credit risk for investments that are in the
possession of another party.
Colorado revised statutes limit investment maturities to five years or less unless formally
approved by the Board of Directors. Such actions are generally associated with a debt service
reserve or sinking fund requirements.
Colorado statutes specify investment instruments meeting defined rating and risk criteria in
which local governments may invest which include:
Obligations of the United States, certain U.S. government agency securities and
securities of the World Bank
General obligation and revenue bonds of U.S. local government entities
Certain certificates of participation
Certain securities lending agreements
Bankers' acceptances of certain banks
Commercial paper
Written repurchase agreements and certain reverse repurchase agreements
collateralized by certain authorized securities
Certain money market funds
Guaranteed investment contracts
Local government investment pools
As of December 31, 2015, the District had the following investments:
Investment
Maturity Fair Value
Colorado Local Government Liquid Asset Weighted average
Trust (Colotrust)
under 60 days $ 536,914
14
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
COLOTRUST
The District invested in the Colorado Local Government Liquid Asset Trust (Colotrust), an
investment vehicle established for local government entities in Colorado to pool surplus funds.
The State Securities Commissioner administers and enforces all State statues governing
Colotrust. Colotrust operates similarly to a money market fund and each share is equal in value
to $1.00. Colotrust offers two portfolios, COLOTRUST PRIME and COLOTRUST PLUS+. Both
portfolios may invest in U.S. Treasury securities, certain obligations of agencies of the U.S.
government and written purchase agreements collateralized by U.S Treasury securities or
certain obligations of U.S government agencies. COLOTRUST PLUS+ may also invest in
highest rated commercial paper and any security allowed under CRS 24-75-601. A designated
custodial bank serves as a custodian for Colotrust's portfolios pursuant to a custodian
agreement.
The custodian acts as a safekeeping agent for Colotrust's investment portfolios and provides
services as the depository in connection with direct investments and withdrawals. The
custodian's internal records segregate investments owned by Colotrust. Colotrust is rated
AAAm by Standard & Poor's.
15
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 4 - CAPITAL ASSETS
An analysis of the changes in capital assets for the year ended December 31, 2015, follows:
Balance at Balance at
December 31, Deletions/ December 31,
2014 Additions Adjustment 2015
Governmental Activities:
Capital assets, nondepreciable:
Land $ 175,847 $ - $ - $ 175,847
Total capital assets, nondepreciable 175,847 175,847
Capital assets, being depreciated:
Building and improvements 11,680,319 - - 11,680,319
Equipment 508,332 136,557 644,889
Vehicles 123,134 - - 123,134
Total capital assets, being depreciated 12,311,785 136,557 12,448,342
Less accumulated depreciation for:
Building and improvements (2,540,958) (236,888) - (2,777,846)
Equipment (380,442) (27,183) (407,625)
Vehicles (112,213) (2,340) - (114,553)
Total accumulated depreciation (3,033,613) (266,411) (3,300,024)
Total capital assets, being
depreciated, net
Governmental activities
capital assets, net
9,278,172 (129,854) - 9,148,318
$ 9,454,019 $ (129,854) $ $ 9,324,165
Depreciation expense for the year ended December 31, 2015, was charged to the swimming
pool, recreation and sports program activities.
16
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 5 - LONG-TERM OBLIGATIONS
The following is an analysis of the changes in the District's long-term obligations for the year
ended December 31, 2015:
General obligation bonds,
Series 2010 issue
Bond premium
Capital leases,
2009 lease
2012 lease
2015 lease
Balance at Balance at
December 31, December 31,
2014 Additions Reductions 2015
$ 5,025,000 $
241,204
Due
Within
One Year
$ 495,000 $ 4,530,000 $ 500,000
42,874 198,330 40,083
1,435,547 97,196
22,848 22,848
- 103,234 2,423
General Obligation Bonds
1,338,351 102,424
100,811 23,455
$ 6,724,599 $103,234 $ 660,341 $ 6,167,492 $ 665,962
$6,180,000 General Obligation Refunding Bonds, Series 2010, dated August 31, 2010, with
interest of 0.75% to 4.00%. Interest is payable semi-annually on June 1 and December 1,
beginning on December 1, 2010. The bonds are subject to redemption prior to maturity, at the
option of the District, without redemption premium, beginning December 1, 2020. Proceeds of
the bonds were used to advance refund a portion of the District's outstanding General
Obligation Bonds, Series 2002, and to pay the costs of issuing the bonds.
The bonds are general obligations of the District, secured by a pledge of the full faith and credit
of the District and payable from the general ad valorem taxes which may be levied without
limitation of rate and in an amount necessary to pay the bonds when due against all taxable
property within the District.
The annual requirement to amortize the District's bonds is as follows:
2016
2017
2018
2019
2020
2021-2023
Principal Interest
$ 500,000
525,000
530,000
550,000
575,000
1,850,000
$ 4,530,000 $ 791,437 $ 5,321,437
Total
$ 159,950 $
147,450
133,012
111,813
89,812
149,400
659,950
672,450
663,012
661,813
664,812
1,999,400
17
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED)
Capital Leases
2009 Building Lease
On May 1, 2009, the District entered into a Lease Agreement with Valley Bank & Trust for the
purpose of financing a portion of the acquisition, construction and installation of a Senior Center
and Gymnasium. Under the Agreement, the District agrees to sublease property from which
Valley Bank & Trust has a leasehold interest in the land, the premises, building and
improvements situated or to be situated on the land. The lease agreement qualifies as a capital
lease for accounting proposes and, therefore, has been recorded at the present value of the
future minimum lease payment as of the inception date. The lease was capitalized in the
amount of $1,800,000 and bears interest at a rate of 4.00%. The District is required to make
semi-annual payments due on April 1, and October 1, beginning on October 1, 2009, and
ending on October 1, 2026.
2012 Equipment Lease
On December 14, 2012, the District entered into a Lease Agreement with Kansas State Bank of
Manhattan for the purpose of acquiring cardiovascular equipment. The lease agreement
qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payment as the of the inception date. The lease was
capitalized in the amount of $82,500 and bears interest at a rate of 7.05%. The lease was paid
in full in 2015.
2015 Equipment Lease
On November 1, 2015, the District entered into a Lease Agreement with Kansas State Bank of
Manhattan for the purpose of acquiring cardiovascular equipment. The Lease Agreement
qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payment as of the date of inception. The lease was
capitalized in the amount of $103,234 and bears interest at a rate of 6.23%. The District is
required to make monthly payments beginning on January 1, 2016, and ending November 1,
2019.
The assets acquired through capital leases are as follows:
Assets:
Building and improvements
Cardio equipment
Less: accumulated depreciation
Total
18
$ 1,800,000
103,234
(222,099)
$ 1,681,135
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED)
The future minimum lease obligations and the net present value of these minimum lease
payments as of December 31, 2015, were as follows:
Year ending December 31,
2016
2017
2018
2019
2020
2021-2025
2026
Total minimum lease payments
Less: Amount representing interest
Present value of minimum lease payments
Current portion
Long-term portion
Authorized Debt
$ 184,017
184,018
184,018
181,595
154,945
774,722
109,096
1,772,412
(333,249)
$ 1,439,162
$ 125,879
$ 1,313,283
The District has no remaining authorized but unissued general obligation indebtedness.
NOTE 6 - NET POSITION
The District has net position consisting of three components — net investment in capital assets,
restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation, and
is reduced by the outstanding balances of bonds, mortgages, notes or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets. As of December
31, 2015, the District had net investment in capital assets calculated as follows:
Net investment in capital assets:
Capital assets, net
Cost of bond refunding
Current portion of outstanding long-term obligations
Noncurrent portion of outstanding long-term obligations
Total net investment in capital assets
19
Governmental
Activities
$ 9,324,165
312,657
(665, 962)
(5,501,530)
$ 3,469,330
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 6 - NET POSITION (CONTINUED)
Restricted net position includes assets that are restricted for use either externally imposed by
creditors, grantors, contributors, or laws and regulations of either governments or imposed by
law through constitutional provisions or enabling legislation. The District had restricted net
position of $987,651 as of December 31, 2015, as follows:
Restricted net position:
Emergence reserves
Debt service
Conservation Trust Fund
Total restricted net position
$ 91,600
849,440
20,252
$ 961,292
The District's unrestricted net position as of December 31, 2015, totaled $(2,014,016). This
deficit amount is a result of the District's requirement to record its proportionate share, as
defined in GASB 68, of PERA's unfunded pension liability. The District has no legal obligation to
fund this shortfall nor does it have any ability to affect funding, benefits, or annual required
contribution decisions made by PERA.
NOTE 7 — INTERGOVERNMENTAL AGREEMENTS
City of Dacono
On November 28, 2001, the District and the City of Dacono (City) entered into an
intergovernmental agreement to set forth the general understandings of the parties regarding
their relationship and their provision of recreation facilities and services within the City and the
District. The District and the City acknowledge and agree that they will have the following
general responsibilities with respect to the following matters of mutual interest to the District and
the City:
• The City will continue to use its best efforts to require developments within the City that
are not currently within the District to file a petition for inclusion with the District.
• The City will give the District the opportunity to comment on development proposals on
all new developments within the City no later than 25 days prior to the Planning
Commission's consideration of such development proposal.
• The City will own and develop the neighborhood, area and regional parks within the City.
• The City will continue to pay for the watering of the inside and surrounding areas of the
regional parks within the City.
• The District will expend District capital improvements and maintenance funds within the
City, in amounts not less than the ratio of the total assessed valuation of all taxable
property within the District. This capital improvement and maintenance expenditure
allocation shall not apply to bond proceeds and shall be reviewed on a three-year basis
commencing in the year 2001.
• The District will operate, maintain and manage the inside (other than watering) of the
sports fields and other recreational facilities within the City, including the BMX Facility.
Such maintenance shall include all necessary moving and provision of porta-potties
during its seasonal use. The City will provide dumpsters and trash service.
20
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 7 - INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
The term of this agreement will remain in effect until December 31, 2015, unless sooner
terminated by mutual written agreement.
Town of Frederick
On April 27, 2006, the District and the Town of Frederick (Town) entered into an
intergovernmental agreement to set forth the general understandings of the Parties regarding
their relationship and their provision of recreation facilities and services within the Town and the
District. The District and the Town acknowledge and agree that they will have the following
general responsibilities with respect to the following matters of mutual interest to the District and
the Town:
• The Town will continue to require developments within the Town that are not currently
within the District to file a petition for inclusion with the District.
• The Town will give the District the opportunity to comment on development proposals on
all new developments within the Town no later than 21 days prior to the Planning
Commission's consideration of such development proposal.
• The Town will own and develop the St. Vrain Legacy Trail within the Town limits.
• The District will expend District capital improvements and maintenance funds within the
Town, in amounts not less than the ratio of the total assessed valuation of all taxable
property within the District. This capital improvement and maintenance expenditure
allocation shall not apply to bond proceeds and shall be reviewed on a three-year basis
commencing in the year 2007.
• The District will operate, maintain and manage the inside (other than watering) of
mutually agreed upon sports fields and/or other recreation facilities within the Town.
• The District shall be responsible for cleaning of all areas and facilities used by it, and for
the supervision of players and programs, and shall hold harmless the Town from any
and all liability resulting there from.
• With respect to the Lighted Ball Field on Block 29, the District agrees to pay all
power/lighting costs associated with its use. The parties agree to evenly split the cost of
all water used. The District is required to perform routine maintenance on the lighted ball
field to include the following: mow and water the grassed areas weekly; daily trash
pickup and maintenance of facilities; and other grounds keeping as agreed upon by the
Parties. The terms of the use of the facilities on Block 29 are further clarified in the July
2012 Agreement for Joint Use of Facilities between the District, the Town and the St.
Vrain School District RE -1J.
The term of this agreement will remain in effect until December 31, 2021, unless sooner
terminated by mutual written agreement.
21
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 7 - INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
Town of Firestone
On January 14, 2015, the District and the Town of Firestone (Town) entered into an
intergovernmental agreement to set forth the general understandings of the Parties regarding
their relationship and their provision of recreation facilities and services within the Town and the
District, and specific responsibilities concerning the use, management, operation and
maintenance of certain Town -owned parks that are jointly used for recreation services. The
District and the Town acknowledge and agree that they will have the following general
responsibilities with respect to the following matters of mutual interest to the District and the
Town:
• The Town will continue to use its best efforts to require developments within the Town
that are not currently within the District to file a petition for inclusion with the District.
• The Town will give the District the opportunity to comment on development proposals on
all new developments within the Town no later than 15 days prior to the Planning
Commission's consideration of such development proposal.
• The Town will own and develop the Firestone Trail.
• The Town will own and develop the neighborhood, area and regional parks and trails
within the Town.
• The District will provide and maintain a current contact list to the Town for a District
representative to be contacted in the case of emergency related to any District activity or
event within the Town. The District shall notify the Town in writing of any change of
designated representative or such representative's contact information.
• To the extent permitted by law, the Town agrees to indemnify and hold harmless the
District and its officials, agents and employees, from and against all liability, claims, and
demands, on account of any injury, loss, or damage, which arise out of or are connected
with the Town's use, operation, maintenance or management of Town Parks or other
Town -owned facilities, to the extent caused by or claimed to be caused by the act,
omission, or other fault of the District, its officials, agents and employees.
• To the extent permitted by law, the District agrees to indemnify and hold harmless the
Town, and its officials, agents and employees, from and against all liability, claims, and
demands, on account of any injury, loss, or damage, which arise out of or are connected
with the District's use, operation, maintenance or management of Town Parks or other
Town -owned facilities, to the extent caused by or claimed to be caused by the act,
omission, or other fault of the District, its officials, agents and employees.
• Representatives of the District shall provide the Town Board with quarterly updates that
include information on current and planned services and facilities, and other issues
related to implementation of this Agreement, and other matters of mutual interest.
• The agreement further clarifies the joint use for specific parks with the Town, including
field maintenance, storage of District equipment and consent for capital improvements.
The term of this agreement will remain in effect until December 31, 2019, unless sooner
terminated by mutual written agreement.
22
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 7 - INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
Town of Firestone and the Firestone Urban Renewal Authority Cooperation Agreement
On December 16, 2015, the District entered into a Cooperation Agreement with the Town of
Firestone and the Firestone Urban Renewal Authority as it relates to the Central Firestone
Urban Renewal Plan. Whereas the Firestone Urban Renewal Authority agrees to pay to the
District all of the increase in property tax revenues calculated, produced, and allocated to the
Firestone Urban Renewal Authority as a result of the levy of the District upon taxable property
within the Urban Renewal Area for twenty-five (25) years from the effective date of the Plan.
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
General Information about the Pension Plan
Plan description. Eligible employees of the Carbon Valley Park and Recreation District are
provided with pensions through the Local Government Division Trust Fund (LGDTF) — a cost -
sharing multiple -employer defined benefit pension plan administered by PERA. Plan benefits
are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative
rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue
Code. Colorado State law provisions may be amended from time to time by the Colorado
General Assembly. PERA issues a publicly available comprehensive annual financial report that
can be obtained at www.copera.orq/investments/pera-financial-reports.
Benefits provided. PERA provides retirement, disability, and survivor benefits. Retirement
benefits are determined by the amount of service credit earned and/or purchased, highest
average salary, the benefit structure(s) under which the member retires, the benefit option
selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth
at C.R.S. § 24-51-602, 604, 1713, and 1714.
The lifetime retirement benefit for all eligible retiring employees under the PERA Benefit
Structure is the greater of the:
• Highest average salary multiplied by 2.5 percent and then multiplied by years of service
credit
• The value of the retiring employee's member contribution account plus a 100 percent
match on eligible amounts as of the retirement date. This amount is then annuitized into
a monthly benefit based on life expectancy and other actuarial factors.
The service retirement benefit is limited to 100 percent of highest average salary and also
cannot exceed the maximum benefit allowed by federal Internal Revenue Code.
Members may elect to withdraw their member contribution accounts upon termination of
employment with all PERA employers; waiving rights to any lifetime retirement benefits earned.
If eligible, the member may receive a match of either 50 percent or 100 percent on eligible
amounts depending on when contributions were remitted to PERA, the date employment was
terminated, whether 5 years of service credit has been obtained and the benefit structure under
which contributions were made.
23
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Benefit recipients who elect to receive a lifetime retirement benefit are generally eligible to
receive post -retirement cost -of -living adjustments (COLAs), referred to as annual increases in
the C.R.S. Benefit recipients under the PERA benefit structure who began eligible employment
before January 1, 2007, receive an annual increase of 2 percent, unless PERA has a negative
investment year, in which case the annual increase for the next three years is the lesser of 2
percent or the average of the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI -W) for the prior calendar year. Benefit recipients under the PERA benefit structure
who began eligible employment after January 1, 2007, receive an annual increase of the lesser
of 2 percent or the average CPI -W for the prior calendar year, not to exceed 10 percent of
PERA's Annual Increase Reserve for the LGDTF.
Disability benefits are available for eligible employees once they reach five years of earned
service credit and are determined to meet the definition of disability. The disability benefit
amount is based on the retirement benefit formula shown above considering a minimum 20
years of service credit, if deemed disabled.
Survivor benefits are determined by several factors, which include the amount of earned service
credit, highest average salary of the deceased, the benefit structure(s) under which service
credit was obtained, and the qualified survivor(s) who will receive the benefits.
Contributions. Eligible employees and the District are required to contribute to the LGDTF at a
rate set by Colorado statute. The contribution requirements are established under C.R.S. § 24-
51-401, et seq. Eligible employees are required to contribute 8 percent of their PERA-includable
salary. The employer contribution requirements are summarized in the table below:
Rate
Employer Contribution Rate'
10.00%
Amount of Employer Contribution
apportioned to the Health Care Trust Fund
as specified in C.R.S. § 24-51-208(1)(f) 1
(1.02)%
Amount Apportioned to the LGDTF1
8.98%
Amortization Equalization Disbursement
(AED) as specified in C.R.S. § 24-51-411'
2.20%
Supplemental Amortization Equalization
Disbursement (SAED) as specified in C.R.S.
§ 24-51-411 '
1.50%
Total Employer Contribution Rate to the
LGDTF1
12.68%
'Rates are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42).
Employer contributions are recognized by the LGDTF in the period in which the compensation
becomes payable to the member and the District is statutorily committed to pay the
contributions to the LGDTF. Employer contributions recognized by the LGDTF from the District
were $192,312 for the year ended December 31, 2015.
24
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(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 liability of $2,196,983 for its proportionate share
of the net pension liability. 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 December 31, 2013. Standard update procedures were used to roll
forward the total pension liability to December 31, 2014. The District proportion of the net
pension liability was based on the District contributions to the LGDTF for the calendar year 2014
relative to the total contributions of participating employers to the LGDTF.
At December 31, 2014, the District proportion was 0.2451143857 percent, which was a
decrease of 0.0415404531 percent from its proportion measured as of December 31, 2013.
For the year ended December 31, 2015, the District recognized pension expense of $80,898. 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 of
Deferred Inflows of
Resources
Resources
Difference between expected and
actual experience
$ -0-
$441
Changes of assumptions or other
inputs
$ -0-
$ -0-
Net difference between projected
and actual earnings on pension
plan investments
$119,143
$ -0-
Changes in proportion and
differences between contributions
recognized and proportionate
share of contributions
$ -0-
$191,253
Contributions subsequent to the
measurement date
$192,312
$ -0-
Total
$311,455
$191,694
25
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
$192,312 reported as deferred outflows of resources related to pensions, resulting from
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, 2015:
December 31, 2016
($121,155)
December 31, 2017
($10,966)
December 31, 2018
$29,786
December 31, 2019
$29,784
Total
($72,551)
Actuarial assumptions. The total pension liability in the December 31, 2013, actuarial valuation
was determined using the following actuarial assumptions and other inputs:
Price inflation 2.80 percent
Real wage growth 1.10 percent
Wage inflation 3.90 percent
Salary increases, including wage inflation 3.90 - 10.85 percent
Long-term investment Rate of Return, net of pension
plan investment expenses, including price inflation 7.50 percent
Future post -retirement benefit increases:
PERA Benefit Structure hired prior to 1/1/07 (automatic) 2.00 percent
PERA Benefit Structure hired after 12/31/06
(ad hoc, substantively automatic) Financed by the Annual
Increase Reserve
Mortality rates were based on the RP -2000 Combined Mortality Table for Males or Females, as
appropriate, with adjustments for mortality improvements based on a projection of Scale AA to
2020 with Males set back 1 year, and Females set back 2 years.
The actuarial assumptions used in the December 31, 2013, valuation were based on the results
of an actuarial experience study for the period January 1, 2008, through December 31, 2011,
adopted by PERA's Board on November 13, 2012, and an economic assumption study, adopted
by PERA's Board on November 15, 2013, and January 17, 2014.
The LGDTF's long-term expected rate of return on pension plan investments was determined
using a log -normal distribution analysis in which best estimate ranges of expected future real
rates of return (expected return, net of investment expense and inflation) were developed for
each major asset class. These ranges were combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation
percentage and then adding expected inflation.
26
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
As of the most recent analysis of the long-term expected rate of return, presented to the PERA
Board on November 15, 2013, the target allocation and best estimates of geometric real rates of
return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
10 Year Expected
Geometric Real Rate of
Return
U.S. Equity — Large Cap
26.76%
5.00%
U.S. Equity - Small Cap
4.40%
5.19%
Non U.S. Equity — Developed
22.06%
5.29%
Non U.S. Equity — Emerging
6.24%
6.76%
Core Fixed Income
24.05%
0.98%
High Yield
1.53%
2.64%
Long Duration Gov't/Credit
0.53%
1.57%
Emerging Market Bonds
0.43%
3.04%
Real Estate
7.00%
5.09%
Private Equity
7.00%
7.15%
Total
100.00%
* In setting the long-term expected rate of return, projections employed to model future returns
provide a range of expected long-term returns that, including expected inflation, ultimately
support a long-term expected rate of return assumption of 7.50%.
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 employee
contributions will be made at the current contribution rate and that employer contributions will be
made at rates equal to the fixed statutory rates specified in law, including current and future
AED and SAED, until the Actuarial Value Funding Ratio reaches 103 percent, at which point,
the AED and SAED will each drop 0.50 percent every year until they are zero. Based on those
assumptions, the LGDTF's fiduciary net position was projected to be available to make all
projected future benefit payments of current 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 discount rate determination does not use the
Municipal Bond Index Rate. There was no change in the discount rate from the prior
measurement date.
27
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Sensitivity of the District proportionate share of the net pension liability to changes in the
discount rate. The following presents the proportionate share of the net pension liability
calculated using the discount rate of 7.50 percent, as well as what the proportionate share of the
net pension liability would be if it were calculated using a discount rate that is 1 -percentage -
point lower (6.50 percent) or 1 -percentage -point higher (8.50 percent) than the current rate:
1%
Decrease
(6.50%)
Current
Discount Rate
(7.50%)
1% Increase
(8.50%)
Proportionate share of the net pension
liability
$3,587,913
$2,196,982
$1,037,353
Pension plan fiduciary net position. Detailed information about the LGDTF's fiduciary net
position is available in PERA's comprehensive annual financial report which can be obtained at
www copera,orq/investments/pera-financial-reports.
Payables to the pension plan
Defined Contribution Pension Plans
Voluntary Investment Program
Plan Description - Employees of the District that are also members of the LGDTF may
voluntarily contribute to the Voluntary Investment Program, an Internal Revenue Code Section
401(k) defined contribution plan administered by PERA. Title 24, Article 51, Part 14 of the
C.R.S., as amended, assigns the authority to establish the Plan provisions to the PERA Board
of Trustees. PERA issues a publicly available comprehensive annual financial report for the
Program. That report can be obtained at www.copera.org/investments/pera-financial-reports.
Funding Policy - The Voluntary Investment Program is funded by voluntary member
contributions up to the maximum limits set by the Internal Revenue Service, as established
under Title 24, Article 51, Section 1402 of the C.R.S., as amended. For the year ended
December 31, 2015, program members contributed $747.
28
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Other Post -Employment Benefits
Health Care Trust Fund
Plan Description — The District contributes to the Health Care Trust Fund (HCTF), a
cost -sharing multiple -employer healthcare trust administered by PERA. The HCTF benefit
provides a health care premium subsidy and health care programs (known as PERACare) to
PERA participating benefit recipients and their eligible beneficiaries. Title 24, Article 51, Part 12
of the C.R.S., as amended, establishes the HCTF and sets forth a framework that grants
authority to the PERA Board to contract, self -insure and authorize disbursements necessary in
order to carry out the purposes of the PERACare program, including the administration of health
care subsidies. PERA issues a publicly available comprehensive annual financial report that
includes financial statements and required supplementary information for the HCTF. That report
can be obtained at www.copera.org/investments/pera-financial-reports.
Funding Policy — The District is required to contribute at a rate of 1.02 percent of PERA-
includable salary for all PERA members as set by statute. No member contributions are
required. The contribution requirements for the District are established under Title 24, Article 51,
Part 4 of the C.R.S., as amended. The apportionment of the contributions to the HCTF is
established under Title 24, Article 51, Section 208(1)(f) of the C.R.S., as amended. For the
years ending December 31, 2015, 2014, and 2013, the District contributions to the HCTF were
$15,421, $13,971 and $22,233, respectively, equal to their required contributions for each year.
NOTE 9 - COMMITMENTS AND CONTINGENCIES
Grant Programs
The District participates in various grant programs, which are subject to review by the grantor
agencies. Such review could lead to a request for reimbursements to grantor agencies for
expenditures disallowed under the terms of the grant. District management believes
disallowances, if any, will be insignificant.
NOTE 10 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; thefts of, damage to, or
destruction of assets; errors or omissions; injuries to employees; or acts of God.
The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as
of December 31, 2015. The Pool is an organization created by intergovernmental agreement to
provide property, liability, public official's liability, boiler and machinery and workers
compensation coverage to its members. Settled claims have not exceeded this coverage in any
of the past three fiscal years.
29
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 10 - RISK MANAGEMENT (CONTINUED)
The District pays annual premiums to the Pool for liability, property, public official's liability and
workers compensation coverage. In the event aggregated losses incurred by the Pool exceed
amounts recoverable from reinsurance contracts and funds accumulated by the Pool, the Pool
may require additional contributions from the Pool members. Any excess funds which the Pool
determines are not needed for purposes of the Pool may be returned to the members pursuant
to a distribution formula.
NOTE 11 - TAX, SPENDING AND DEBT LIMITATIONS
Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer's Bill of
Rights (TABOR), contains tax, spending, revenue and debt limitations that apply to the State of
Colorado and all local governments.
Spending and revenue limits are determined based on the prior year's Fiscal Year Spending
adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is
generally defined as expenditures plus reserve increases with certain exceptions. Revenue in
excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention
of such revenue.
TABOR requires local governments to establish Emergency Reserves. These reserves must be
at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are
not allowed to use the emergency reserves to compensate for economic conditions, revenue
shortfalls, or salary or benefit increases. TABOR reserve is not provided when the District's
ending fund balance is deficit.
In November 1996, the registered voters of the District voted to allow the District to collect,
retain, and expend all revenues and other funds generated from its current general fund
property tax mill levy of 4.427 mills, from fees and charges and all other sources, effective
January 1, 1996, and continuing thereafter, and be used to provide District services as a voter
approved revenue change, offset and an exception to the limits imposed by Article X, Section 20
of the Colorado Constitution, Section 29-1-301, C.R.S. This effectively removed all revenue and
spending limits imposed by the Amendment.
The District's management believes it is in compliance with the provisions of TABOR. However,
TABOR is complex and subject to interpretation. Many of the provisions, including the
interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation.
30
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
NOTE 12 - SUBSEQUENT EVENT
On February 22, 2016, the District entered into a Lease Agreement with Option to Purchase
with Weld County for the property located at 320 Maple Street, Frederick, CO 80530, to be used
as the District's administrative offices. The District paid a non-refundable option fee in the
amount of $105,000 which will serve as the security deposit. Beginning in May 2016, the District
will pay monthly payments in the amount of $5,869.84 for sixty (60) months. The overall cost of
the property is $300,000 with an interest rate of 6.50%. The District has the option to purchase
the property at the end of the sixty months, April 2021, of the price of $1.00. The non-refundable
option fee will apply to the purchase price.
This information is an integral part of the accompanying financial statements.
31
REQUIRED SUPPLEMENTARY INFORMATION
32
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PERA PENSION PLAN - LOCAL GOVERNMENT DIVISION OF TRUST FUND
LAST TEN YEARS *
Year Ended December 31, 2015
2014 2013
District Proportion of the Net Pension Liability (Asset)
0.24511% 0.28665%
District Proportionate Share of the Net Pension
Liability (Asset) $ 2,196,983 $ 2,358,943
District Covered Employee Payroll $ 1,343,117 $ 1,529,330
Proportionate Share of Net Pension Liability as a
Percentage of its Covered Employee Payroll
Calculation of Collective Net Pension Liability
($ in thousands):
Total Pension Liability
Plan Fiduciary Net Position
163.573% 154.247%
$ 4,647,777 $ 4,517,239
3,751,468 3,694,318
Net Pension Liability $ 896,309 $ 822,921
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
80.72% 81.78%
NOTE: Information for the prior eight years was not available to report.
33
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PERA PENSION PLAN - LOCAL GOVERNMENT DIVISION OF TRUST FUND
LAST TEN YEARS *
Year Ended December 31, 2015
Contractually Required Contribution
Contributions in Relation to the Contractually
Required Contribution
2015
2014 2013
$ 192,312 $ 170,307 $ 193,919
(192,312)
Contribution Deficiency (Excess) $
(170,307) (193,919)
$ - $
Convered Employee payroll $ 1,516,586 $ 1,343,117 $ 1,529,330
Contributions as Percentage of Covered
Employee Payroll 12.68%
NOTE: Information for the prior seven years was not available to report.
34
12.68% 12.68%
SUPPLEMENTARY INFORMATION
35
CARBON VALLEY PARK AND RECREATION DISTRICT
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
Year Ended December 31, 2015
Budgeted Variance with
Amounts Final Budget
Original/ Actual Positive
Final Amounts (Negative)
REVENUES
Property taxes
Specific ownership taxes
Net investment income
Total revenues
EXPENDITURES
County Treasurer's fees
Debt service
Bond principal
Bond interest
Paying agent fees
Total expenditures
$ 862,648 $ 853,381 $ (9,267)
60,390 58,309 (2,081)
1,500 1,290 (210)
924,538
12,940
495,000
171,088
2,575
681,603
NET CHANGE IN FUND BALANCES 242,935
912,980 (11,558)
12,815
495,000
171,088
200
125
2,375
679,103 2,500
233,877 (9,058)
FUND BALANCES - BEGINNING OF YEAR 640,683 642,545 1,862
FUND BALANCES - END OF YEAR
$ 883,618 $ 876,422 $ (7,196)
36
OTHER INFORMATION
37
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2015
$6,180,000
General Obligation Bonds, Series 2010
Dated August 31, 2010
Interest Rate 2.50% to 4.00%
Bonds and Interest Interest Payable June 1 and December 1
Maturing in the Year Principal Due December 1
Ending December 31, Principal Interest Total
2016 $ 500,000 $ 159,950 $ 659,950
2017 525,000 147,450 672,450
2018 530,000 133,012 663,012
2019 550,000 111,813 661,813
2020 575,000 89,812 664,812
2021 600,000 74,000 674,000
2022 615,000 50,000 665,000
2023 635,000 25,400 660,400
$ 4,530,000 $ 791,437 $ 5,321,437
38
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2015
$1,800,000
Capital Lease, 2009
Dated May 1, 2009
Bonds and Interest Interest Rate 4.00%
Maturing in the Year Interest and Principal Payable April 1 and October 1
Ending December 31, Principal Interest Total
2016 $ 102,424 $ 52,520 $ 154,944
2017 106,562 48,382 154,944
2018 110,867 44,077 154,944
2019 115,347 39,598 154,945
2020 120,007 34,938 154,945
2021 124,855 30,090 154,945
2022 129,899 25,045 154,944
2023 135,147 19,797 154,944
2024 140,607 14,338 154,945
2025 146,287 8,657 154,944
2026 106,349 2,747 109,096
$ 1,338,351 $ 320,189 $ 1,658,540
39
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2015
$103,234
Capital Lease, 2015
Dated November 1, 2015
Bonds and Interest Interest Rate 6.23%
Maturing in the Year Interest and Principal Payable Monthly on the 1st Day
Ending December 31, Principal Interest Total
2016 $ 23,455 $ 5,618 $ 29,073
2017 24,959 4,115 29,074
2018 26,559 2,515 29,074
2019 25,838 812 26,650
$ 100,811 $ 13,060 $ 113,871
40
CARBON VALLEY PARK AND RECREATION DISTRICT
SUMMARY OF ASSESSED VALUATION,
MILL LEVY AND PROPERTY TAXES COLLECTED
Year Ended December 31, 2015
Year Ended
December 31,
2011
2012
2013
2014
2015
Estimated for
the year ending
December 31,
2016
Prior
Year Assessed
Valuation
for Current
Year Property
Tax Levy
$ 302,898,970
$ 373,579,410
$ 413,761,430
$ 390,324,640
$ 383,194,650
Mills Total Property Taxes
Levied Levied Collected
6.657 (1) $ 2,016,399 $ 2,015,043
6.657 $ 2,489,618 $ 2,393,374
6.657 $ 2,754,410 $ 2,688,664
6.657 $ 2,598,398 $ 2,576,339
6.710 (2) $ 2,571,235 $ 2,552,913
$ 655,895,660 6.794 (3) $ 4,456,155
Percentage
Collected
to Levied
99.9%
96.1%
97.6%
99.2%
99.3%
(1) The total mill levy of 6.657 mills is made up of 4.427 for general operations and 2.230 for debt service.
(2) The 2015 total mill levy of 6.710 mills is made up of 4.427 for general operations, 2.230 for debt service
and 0.053 for refunds and abatements.
(3) The 2016 total mill levy of 6.794 is made up of 4.427 for general operations, 2.230 for debt service, and
0.137 for refunds and abatements.
Note:
Property taxes collected in any one year include collection of delinquent property taxes assessed in prior
years, as well as reductions for property tax refunds or abatements. Information received from the County
Treasurer does not permit identification of specific year of assessment.
41
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