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HomeMy WebLinkAbout20162445.tiffWindsor - Severance Fire Protection District Financial Statements With Independent Auditors' Report For the Year Ended December 31, 2015 Coon+� Cc -ea -RA Comnnonhca+i onS / 1 / 1co 2016-2445 So oc9 &S Windsor - Severance Fire Protection District Table of Contents PAGE INTRODUCTORY SECTION Table of Contents Management's Discussion and Analysis (Unaudited) M1 - M7 FINANCIAL SECTION Independent Auditors' Report Basic Financial Statements Government -Wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: 1-2 3 4 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 — 29 Required Supplementary Information — Pension Schedules (Unaudited) FPPA Statewide Hybrid Plan Schedule of the District's Proportionate Share of the Net Pension Asset (Liability) Schedule of District Contributions 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 30 31 32 33 34 Windsor - Severance Fire Protection District Table of Contents (Continued) PAGE Required Supplementary Information Budgetary Comparison Schedule —General Fund Other Supplementary Information 35 Budgetary Comparison Schedule — Capital Projects Fund 36 Budgetary Comparison Schedule — Debt Service Fund 37 Windsor - Severance Fire Protection District Management's Discussion and Analysis For the Year Ended December 31, 2015 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, 2015. 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 2015 to be collected during 2016. Financial Highlights The District's financial status increased over the course of the 2015 fiscal year. Total net position increased 14 percent. Governmental activities tax revenues account for $5,034,753 or 90 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 $511,123 or 10 percent of total revenues of $5,564,698. The District had $4,411,138 in expenses related to governmental activities; only $422,298 of these expenses were offset by program specific charges for services and operating grants and contributions. General property and specific ownership taxes of $5,034,753 and $18,822 in other revenues were adequate to provide for these programs. Outlay for capital assets primarily comprised of the rechassis of two ambulances. 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 $414,398 or 5.8 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. M1 Windsor - Severance Fire Protection District Management's Discussion and Analysis For the Year Ended December 31, 2015 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 three 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, capital 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, 2015 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, 2015, than they were at December 31, 2014, increasing 14 percent to $9,943,082. Table 1 provides a summary of the District's Net Position. Table 1 Condensed Statement of Net Position Governmental Activities 2015 2014 ASSETS Current and Other Assets Capital Assets, net TOTAL ASSETS $ 11,795,955 $ 10,115,413 9,199,862 9,324,091 20,995,817 19,439,504 DEFERRED OUTFLOWS 491,329 17,462 LIABILITIES Current Liabilties Noncurrent Liabilities TOTAL LIABILITIES DEFERRED INFLOWS NET POSITION Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position TOTAL NET POSITION 87,263 5,793,692 5,880,955 5,663,109 3,910,177 964,031 5,068,874 360,732 5,804,868 6,165,600 4,715,373 3,536,685 503,295 4,536,013 8,575,993 $ 9,943,082 $ M3 Windsor - Severance Fire Protection District Management's Discussion and Analysis For the Year Ended December 31, 2015 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 2015 2014 PROGRAM REVENUES Charges for Services Operating Grants and Contributions Capital Grants and Contributions TOTAL PROGRAM REVENUES GENERAL REVENUES Taxes Investment Earnings Other Revenues TOTAL GENERAL REVENUES TOTAL REVENUES PROGRAM EXPENSES Public Safety CHANGE IN NET POSITION NET POSITION, Beginning Prior Period Restatement NET POSITION, Beginning (As Restated) $ 345,770 $ 171,852 76,528 82,824 88,825 152,523 511,123 407,199 5,034,753 4,558,509 5,437 2,136 13,385 32,722 5,053,575 4,593,367 5,564,698 5,000,566 4,411,138 4,311,028 1,153,560 689,538 8,575,993 7,886,455 213,529 8,789,522 7,886,455 NET POSITION, Ending $ 9,943,082 $ 8,575,993 M4 Windsor - Severance Fire Protection District Management's Discussion and Analysis For the Year Ended December 31, 2015 Property and specific ownership taxes account for most of the District's revenue, contributing about 90 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 $487,424 during 2015. 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 $120,999 for 2015. 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 2015 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 $142,000. The actual results for the year show a $554,186 excess of revenues over expenditures in the general fund for 2015. 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, 2015, the District's TABOR reserve amounted to $155,000. M5 Windsor - Severance Fire Protection District Management's Discussion and Analysis For the Year Ended December 31, 2015 Capital Assets and Debt Administration Capital Assets By the end of 2015, the District had invested $9,199,862, 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 $124,229 or 1.3 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 $378,653 while net additions amounted to $499,652, due primarily to the rechassis of two ambulances. Table 3 Capital Assets (Net of Depreciation) Balance Balance 1/1/15 Additions Deletions 12/31/15 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 3,650,203 760,303 $ - $ 942,382 484,781 567,869 14,871 30,968 11,296,138 499,652 6,885,632 3,567,115 744,206 598,837 11,196,953 (775,435) (141,144) - (916,579) (1,878,279) (173,999) (327,889) (1,724,389) (260,715) (63,510) (25,720) (298,505) (2,914,429) (378,653) (353,609) (2,939,473) $ 9,324,091 $ 120,999 $ 245,228 $ 9,199,862 Long -Term Debt At year-end, the District had $2,618,817 in capital lease obligations and $2,655,000 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. General Obligation Bonds Series 2009 Bond Premium Certificates of Participation Series 2012 Discount on COP's Copier Capital Lease Net Pension Liability Compensated Absences Total Obligations Deferred Charge on Refunding Table 4 Outstanding Long -Term Debt Restated Balance Balance Current Interest 12/31/14 Advances Repayments 12/31/15 Portion Expense $ 2,940,000 $ - $ 285,000 $ 2,655,000 $ 285,000 $ 110,794 44,260 - 8,114 36,146 - - 2,735,000 - 120,000 2,615,000 120,000 83,815 (22,305) - (2,027) (20,278) (1,969) - 7,128 - 3,311 3,817 3,515 504 342,214 39,950 - 382,164 100,785 21,058 - 121,843 - $ 6,147,082 $ 61,008 $ 414,398 $ 5,793,692 $ 406,546 $ 195,1 3 $ (17,462) $ $ 4,826 $ (12,636) $ (4,102) $ M6 Windsor - Severance Fire Protection District Management's Discussion and Analysis For the Year Ended December 31, 2015 During 2015, the District decreased its capital lease obligations by $123,311 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 2016 budgets a General Property Tax revenue of $5,078,016 (based on an assessed valuation for the District, of $722,896,659 and a mill levy of 7.194 mills in Weld and Larimer Counties) with a budget of $5,272,381 for 2015 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 FINANCIAL SECTION Holscher, Mayberry d`? 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, 2015, 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, 2015 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. Report on Summarized Comparative Information We have previously audited the Windsor Severance Fire Protection District's 2014 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated June 5, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2013 is consistent, in all material respects, with the audited financial statements from which it has been derived. 8310 South Valley Highway — Suite 300 Voice (303) 993-2199 Englewood, Colorado 80112 Fax (720) 633 — 9763 Independent Auditors' Report Page 2 Emphasis of Matter As discussed in Note 9 to the financial statements, the 2014 financial statements have been restated to reflect the adoption of GASB Statement Number 68 — Accounting and Financial Reporting for Pensions. The adoption of the standard required restatement of the beginning December 31, 2015 fiscal year net position. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information — Management's Discussion and Analysis and Pension Schedules Accounting principles generally accepted in the United States of America require that the management, discussion and analysis on pages M1— M7 and the pension schedules on pages 30- 34 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 pages 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. In addition, the budgetary comparison schedules on pages 36 - 37 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. G LL Englewood, Colorado July 6, 2016 INTENTIONALLY LEFT BLANK Basic Financial Statements Windsor -Severance Fire Protection District Statement of Net Position December 31, 2015 Governmental Activities ASSETS AND DEFERRED OUTFLOWS ASSETS Current Assets Cash Rest. Cash and Investment Property Tax Receivable Cash with Fiscal Agent Accounts Receivable Prepaid Expenses Total Current Assets Capital and Other Assets Capital Assets, not being depreciated Capital Assets, being depreciated (net) Net Pension Asset Total Capital and Other Assets TOTAL ASSETS DEFERRED OUTFLOWS OF FINANCIAL RESOURCES Deferred Charge on Refunding Pension Contribution Timing Difference Pension Difference between Projected and Actual Investment Earnings - net Pension Difference between Projected and Actual Experience- net TOTAL DEFERRED OUTFLOWS OF FINANCIAL RESOURCES TOTAL ASSETS AND DEFERRED OUTFLOWS LIABIUTIES, DEFERRED INFLOWS AND FUND BALANCE LIABILITIES Current Liabilities Accounts Payable Accd Salaries & Benefits Accrued Interest Payable Total Current Liabilities Noncurrent Liabilities Due within one year Due in more than one year Total Noncurrent Liabilities TOTAL UABILITIES DEFERRED INFLOWS OF FINANCIAL RESOURCES Deferred Property Taxes Pension Difference between Projected and Actual Experience - net Pension Change in Proportionate Share - net TOTAL DEFERRED INFLOWS OF FINANCIAL RESOURCES NET POSITION Net Invest in Cap Assets Restricted Net Position Unrestricted Net Position TOTAL NET POSITION TOTAL LIABILITIES, DEFERRED INFLOWS AND NET POSITION The accompanying notes are an integral part of the financial statements. 3 $ 5,262,467 371,282 5,635,400 7,632 1,962 58,503 11,337,246 942,382 8,257,480 458,709 9,658,571 20,995,817 12,636 414,564 51,684 12,445 491,329 21,487,146 67,213 1,256 18,794 87,263 406,546 5,387,146 5,793,692 5,880,955 5,635,400 9,449 18,260 5,663,109 3,910,177 964,031 5,068,874 9,943,082 $ 21,487,146 Windsor -Severance Fire Protection District Statement of Activities Year Ended December 31, 2015 Program Revenues Functions/Programs Governmental Activities: Public Safety Operating Capital Net Charges for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities $ 4,411,138 $ 345,770 $ General Revenues: Taxes Investment Earnings Other Revenues Total General Revenues 76,528 $ 88,825 $ (3,900,015) 5,034,753 5,437 13,385 5,053,575 Change in Net Position 1,153,560 Net Position, Beginning Prior Period Restatement Net Position, Beginning (as restated) 8,575,993 213,529 8,789,522 Net Position, Ending $ 9,943,082 The accompanying notes are an integral part of the financial statements. 4 Windsor -Severance Fire Protection District Balance Sheet Governmental Funds December 31, 2015 (With Comparative Totals For December 31, 2019) 2015 Capital Debt General Projects Service Fund Fund Fund Total 2014 ASSETS Cash Rest. Cash and Investment Property Tax Receivable Cash with Fiscal Agent Accounts Receivable Prepaid Expenses $ 5,262,467 $ 5,239,555 7,618 1,962 58,503 TOTAL ASSETS 10,570,105 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE LIABILITIES Accounts Payable Accd Salaries & Benefits TOTAL LIABILITIES DEFERRED INFLOWS OF FINANCIAL RESOURCES Deferred Property Taxes Deferred Grants 67,213 1,256 68,469 5,239,555 TOTAL DEFERRED INFLOWS 5,239,555 FUND BALANCE Nonspesdable Fund Balance Restricted Fund Balance Committed Fund Balance Unassigned Fund Balance TOTAL FUND BALANCE TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE 58,503 155,000 21,860 5,026,718 $ 5,262,467 $ 4,765,869 371,282 371,282 353,059 395,845 5,635,400 4,715,373 14 7,632 31,110 1,962 195,023 58,503 54,979 767,141 11,337,246 10,115,413 67,213 332,851 1,256 1,435 68,469 334,286 395,845 5,635,400 4,715,373 6,640 395,845 5,635,400 4,722,013 371,296 • 5,262,081 - 371,296 $ 10,570,105 58,503 526,296 21,860 5,026,718 54,979 492,337 10,958 4,500,840 5,633,377 5,059,114 5 767,141 $ 11,337,246 $ 10,115,413 The accompanying notes are an -integral part of the financial statements. 5 Windsor -Severance Fire Protection District Reconciliation of Governmental Fund Balance to Governmental Activities Net Position Year Ended December 31, 2015 Fund Balance- Governmental Funds $ 5,633,377 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds: Capital assets, not being depreciated 942,382 Capital assets, being depreciated 11,196,953 Accumulated depreciation (2,939,473) Certain long-term pension related costs and adjustments are not available to pay or are not payable currently and are therefore not reported in the funds: Net pension asset Net pension liability Contributions subsequent to the measurement date Difference between projected and actual investment returns on the pension plan Amortization of investment return difference Difference between projected and actual pension plan experience Amortization of the plan experience difference Difference between projected and actual pension plan experience Amortization of the plan experience difference Change in proportionare share of the cost -sharing pension plan Amortization of the proportionate share difference Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds: liabilities on the statement of net position: Certificate of Participation payable Bonds payable Capital leases payable Accrued interst payable Bond Premiums Discount on Certificates of Participation Deferred charge on debt refunding Accrued compensated absences 458,709 (382,164) 414,564 64,606 (12,922) 17,546 (5,101) (10,439) 990 (20,173) 1,913 (2,615,000) (2,655,000) (3,817) (18,794) (36,146) 20,278 12,636 (121,843) Net Position - Governmental Activities $ 9,943,082 The accompanying notes are an integral part of these financial statements 6 Windsor -Severance Fire Protection District Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2015 (With Comparative Totals for the Year Ended December 31, 2014) 2015 General Capital Project Debt Service Fund Fund Fund Total 2014 REVENUES Taxes Intergovernmental Licenses and Permits Charges for Services Investment Earnings Other Revenues TOTAL REVENUES EXPENDITURES Current Administration Museum Firefighting Medical Rescue Services Fire Prevention Health and Safety Commuications Building Maintenance Equipment Maintenance Debt Service Debt Service Principal Debt Service Interest Capital Outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers In (Out) CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 4,610,732 $ 165,353 14,390 331,380 5,285 13,385 _ 5,140,525 $ 424,021 5 5,034,753 $ 4,558,509 165,353 230,799 14,390 8,295 - 331,380 163,557 3 149 5,437 2,136 13,385 150,405 3 424,170 5,564,698 5,113,701 1,283,806 - 1,283,806 1,170,795 2,308 2,308 14,058 2,181,480 900 6,690 2,189,070 1,947,753 12,023 - 12,023 15,015 83,958 - - 83,958 79,312 12,682 - - 12,682 21,226 22,542 - - 22,542 17,693 145,360 - - 145,360 148,417 146,826 - - 146,826 109,105 123,311 - 285,000 408,311 393,119 84,619 - 111,506 196,125 206,867 487,424 - 487,424 922,630 4,586,339 900 403,196 4,990,435 5,045,990 554,186 (897) 20,974 574,263 67,711 4,118 (4,118) - - 558,304 (5,015) 20,974 574,263 67,711 4,703,777 5,015 350,322 5,059,114 4,991,403 $ 5,262,081 $ - $ 371,296 $ 5,633,377 $ 5,059,114 The accompanying notes are an integral part of these financial statements. 7 Windsor -Severance Fire Protection District Reconciliation of Governmental Change in Fund Balance to Governmental Activities Change in Net Position Year Ended December 31, 2015 Change In Fund Balance - Governmental Funds $ 574,263 Amounts reported for governmental activities in the statement of activities are different because: Purchases of capital assets are expensed in the funds and depreciated for the statement of activities: Purchase of capital assets Depreciation expense Basis of capital asset disposals Pension expense ar 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 experience difference Current year amortization of overall nexperience return differences Current year change in plan proportion share of cost -sharing plan asset/liability Current year amortization of overall proportionate share differences Principal payments are reported as expenses in the funds and reductions of liabilities on the statement of net position: Certificate of Participation principal Bonds Payable principal Capital Lease principal Other long-term liabilities are expensed in the funds when paid and recorded as liabilities on the statement of net position: Change in accrued interest payable Amortization of Bond premiums Amortization of Certificate of Participation discount Amortization of deferred charge on refunding Change in accrued compensated absences 499,652 (378,653) (245,228) 202,090 64,606 (12,922) 75,490 7,107 (4,111) (20,173) 1,913 120,000 285,000 3,311 1,012 8,114 (2,027) (4,826) (21,058) Change in Net Position - Governmental Activities $ 1,153,560 The accompanying notes are an integral part of the financial statements 8 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 The 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, 2015 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. All funds are classified as governmental funds. 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, 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Capital Projects Fund The Capital Projects fund was established to account for resources used for the acquisition and construction of major capital assets 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. 11 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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 2015 and due in 2016. 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 reports 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, 2015 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. The District also reports pension related deferred outflows and inflows as further discussed in Note 4. 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, 2015 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, 2015 NOTE 2: CASH AND INVESTMENTS The District's cash and investment balances as of the year ended December 31, 2015 are as follows: Restricted Cash and Investments (Debt Service) Unrestricted Cash and Investments Total Cash and Investments DEPOSITS Custodial Credit Risk - Deposits $ 371,282 5,262,467 $ 5,633,749 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 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, 2015, 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, 2015 the District's deposits are categorized as follows: FDIC Insured PDPA Collateralized (not in District's name) Total Bank Carrying Balance Balance 360,029 $ 360,029 5,338,160 5,273,720 5,698,189 $ 5,633,749 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, 2015 NOTE 2: CASH AND INVESTMENTS (Continued) INVESTMENTS (Continued) Credit Risk Colorado statutes specify which instruments units of local government may invest, which include: • 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- 75-6O1.1 as described above. 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, 2O15, the District did not have any investments requiring safekeeping. 16 WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 3: CAPITAL ASSETS Changes in governmental activities capital assets for the year ended December 31, 2015 was as follows: Balance Balance 1/1/15 Additions Deletions 12/31/15 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 $ $ - $ 942,382 6,885,632 - 6,885,632 3,650,203 484,781 567,869 3,567,115 760,303 14,871 30,968 744,206 11,296,138 499,652 598,837 11,196,953 (775,435) (141,144) (916,579) (1,878,279) (173,999) (327,889) (1,724,389) (260,715) (63,510) (25,720) (298,505) (2,914,429) (378,6531 (353,6091 (2,939,473) $ 9,324,091 $ 120,999 $ 245,228 $ 9,199,862 Depreciation has all been allocated to the public safety function on the statement of activities. 17 NOTE 4: PENSION OBLIGATIONS FPPA Statewide Hybrid Plan Description. 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. Statewide Hybrid Pension Plan - Defined Benefit Component Plan Description. 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. Description of Benefits. A member is eligible for a normal retirement pension once the member has completed twenty-five years of credited service and has attained the age of 55. The annual normal retirement benefit is 1.5 percent of the average of the member's highest three years' base salary for each year of credited service. Benefits paid to retired members are evaluated and may be redetermined every October 1. The amount of any increase is based on the Board's discretion and can range from 0 to 3 percent. 17 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) FPPA Statewide Hybrid (Continued) A member is eligible for an early retirement at age 50 or after 30 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% 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. Basis of Presentation. 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, 2014, 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, 2014, the District's proportion was 0.4065 percent, which was an increase of 0.0023 from its proportion measured as of December 31, 2013. 18 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) FPPA Statewide Hybrid (Continued) For the year ended December 31, 2015, 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 $ - $ (9,449) Net difference between projected and actual earnings on pension plan investments $ 36,166 $ Changes in proportion and differences between contributions recognized and proportionate share of contributions $ - $ (18,260) Contributions subsequent to the measurement date $ 282,066 Total $ 318,232 $ (27,709) $282,066 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: 2016 $ (6,139) 2017 (6,139) 2018 (6,139) 2019 (6,137) 2020 2,903 Thereafter 13,194 Total $ (8,457) 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 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 4.00-16.00% Cost of Living Adjustments (COLA) 0.00% ' Includes inflation at 3.00% 19 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) FPPA Statewide Hybrid (Continued) 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. 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 40.00% 8.90% Equity Long/Short 10.00% 7.50% Illiquid Alternatives 18.00% 10.50% Fixed Income 15.00% 4.60% Absolute Return 12.00% 6.50% Managed Futures 4.00% 5.50% Cash 1.00% 2.50% 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. Sensitivity of the District's proportionate share of the net pension liability to changes in the discount rate. 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 liabil ty 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%) Proportionare share of the net pension asset (liability) $ (432,476) $ 458,709 $ 1,202,073 20 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) FPPA Statewide Hybrid (Continued) Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued FPPA financial report. Statewide Hybrid Pension Plan — Money Purchase Component Plan Description. 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). 21 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) 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. 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. 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. 22 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) Volunteer Firefighters Pension Plan (Continued) 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: 2016 $ (8,981) 2017 (8,981) 2018 (6,123) 2019 (3,878) Total $ (27,963) Actuarial Assumptions. The anuary 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 Method Entry Age Normal Amortization Method Level Dollar, Open" Amortization Period 20 Years" Asset Valuation Method 5 -Year Smoothed Market Long-term investment Rate of Return 7.50% Mortality Pre -retirement: RP -2000 Combined Mortality Table with Blue Collar Adjustment, 40% muliplier for off duty Post -retirement: RP -2000 Combined Mortality Table with Blue Collar Adjustment Diabled: RP2000 Diabled Mortality Table, with Blue Collar Adjustment Salary increase, including wage inflation N/A Retirement Age 50% per year of eligibility until 100%at age 65 Inflation 3.00% ' Plans that are heavily weighted with retiree liabilities use an amortization period based on the expected remaining lifetime of the participants 23 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) Volunteer Firefighters Pension Plan (Continued) 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 40.00% 8.90% Equity Long/Short 10.00% 7.50% Illiquid Alternatives 18.00% 10.50% Fixed Income 15.00% 4.60% Absolute Return 12.00% 6.50% Managed Futures 4.00% 5.50% Cash 1.00% 2.50% Total 100.00% Discount Rate. Projected benefit payments are required to be d'scounted 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). 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 the 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 (6.5%) Current Discount Rate (7.5%) 1% Increase (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. 24 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 4: PENSION OBLIGATIONS (Continued) Volunteer Firefighters Pension Plan (Continued) 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 fiducia rty net position Plan fiduciary net position -beginning Plan fiduciary net position-ending(b) District's net pension liability -ending (a )-(b) 2015 $ 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 $ 2,721,030 5 382,164 There were no changes in the benefit terms, assumptions or other inputs during the fiscal year. Membership. As of the December 31, 2014 measurement date, pension plan membership consisted of the following: Retirees and Beneficiaries Inactive, Nonretired Members Active Members Total 34 13 30 77 25 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 5: LONG-TERM OBLIGATIONS The following is a schedule of changes in debt for the year ended December 31, 2015: General Obligation Bonds Series 2009 Bond Premium Certificates of Participation Series 2012 Discount on COP's Copier Capital Lease Net Pension Liability Compensated Absences Total Obligations Deferred Charge on Refunding Restated Balance Balance Current Interest Accrued 12/31/14 Advances Repayments 12/31/15 Portion Expense Interest $ 2,940,000 $ - $ 285,000 $ 2,655,000 $ 285,000 $ 110,794 $ 8,580 44,260 - 8,114 36,146 - - - 2,735,000 - 120,000 2,615,000 120,000 83,815 10,214 (22,305) - (2,027) (20,278) (1,969) - 7,128 - 3,311 3,817 3,515 504 - 342,214 39,950 - 382,164 - - - 100,785 21,058 - 121,843 - - 6,147,082 $ 61,008 $ 414,398 $ 5,793,692 $ 406,546 $ 195,113 $ 18,794 $ (17,462) $ $ 4,826 $ (12,636) $ (4,102) $ - The above balances have been restated to include the Net Pension Liability that would have been outstanding as of December 31, 2014 as further described in Note 9. 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 Principal Interest Total 2016 $ 120,000 5 81,715 $ 201,715 2017 125,000 79,315 204,315 2018 125,000 76,815 201,815 2019 130,000 73,065 203,065 2020 135,000 69,165 204,165 2021-2025 735,000 282,375 1,017,375 2026-2030 860,000 158,645 1,018,645 2031-2032 385,000 20,300 405,300 Total $ 2,615,000 $ 841,395 $ 3,456,395 26 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 5: LONG-TERM OBLIGATIONS (Continued) 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. Principal payments start at $105,000 in 2013 and increase to $195,000 by 2032. Interest rates begin at 2.0% and increase to 3.25%, and the District received additional proceeds of $1,395,000, the net proceeds of which were used to renovate Fire Station #2. The District recorded a charge on refunding related this refunding. Scheduled payments on the certificates of participation are due as follows: Year Principal Interest Total 2016 $ 285,000 $ 102,956 5 387,956 2017 305,000 93,694 398,694 2018 310,000 83,019 393,019 2019 325,000 70,619 395,619 2020 335,000 57,619 392,619 2021-2023 1,095,000 88,800 1,183,800 Total $ 2,655,000 $ 496,707 $ 3,151,707 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 an original value of $12,946 and a remaining basis of $3,237 has been capitalized under this lease. Future minimum capital lease payments at December 31, 2015, are as follows: Vear laat 2016 $ 3,648 2017 300 Total Payments 3,952 Interest at 6% 11351 Present Value of Payments $ 3,817 27 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015 will provide the basis for calculation of future limitations adjusted for allowable increases tied to inflation and local growth. Subsequent to December 31, 2015, 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. The Article requires an emergency reserve be set aside for 2015 in the amount of 3% or more of its fiscal year spending. At December 31, 2015, the District has reserved the following for emergencies: General Fund $155,000 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. NOTE 8: INTERFUND TRANSACTIONS The District has recorded the following transfer to close out the capital projects fund: Transfers In Transfers Out General Fund $ 4,118 $ Capital Projects Fund - 4,118 Net Transfers $ 4,118 $ 4,118 28 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2015 NOTE 9: PRIOR PERIOD RESTATEMENT For the fiscal year, the District adopted GASB Statement Number 68 — Accounting and Reporting for Pensions — an amendment of GASB Statement No. 27. The statement places a long term obligation, as well as related deferred outflows and inflows, on the Statement of Net Position related to future pension obligations. The District has restated the beginning net position for the governmental activities for those balances that were applicable as of December 31, 2014. These restatements are as follows: Governmental Activities Net Position, Beginning Contributions Subsequent to Measurement Date Net Pension Asset - FPPA Hybrid Plan Net Pension Liability - Volunteer Net Position, Beginning (As Restated) $ 8,575,993 212,474 343,269 (342,214) $ 8,789,522 29 Required Supplementary Information Pension Schedules (Unaudited) WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION ASSET (LIABILITY) FPPA Statewide Hybrid Plan Last 10 Fiscal Years(1) 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 (liaiblity) as a percentage of covered -employee payroll Plan fiduciary net position as a percentage of the total pension liabilty 12/31/2015 12/31/2014 0.406449% 0.383889% $ 458,709 $ 343,269 $ 1,827,813 $ 1,667,388 25.10% 20.59% 106.83% 105.83% Note: Al( amounts are as of plan calculation dates which are one fiscal year prior to the date shown. I'I - Additional years will be added to this schedule as they become available. See the accompanying Independent Auditors' Report. 30 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT SCHEDULE OF DISTRICT CONTRIBUTIONS FPPA Statewide Hybrid Plan Last 10 Fiscal Years(1) Contractually required contributions Actual contributions Contribution deficiency (excess) District's covered -employee payroll Contributions as a percentage of covered -employee payroll 12/31/2015 12/31/2014 $ 146,225 $ 133,391 (146,225) (133,391) $ - $ $ 1,827,813 $ 1,667,388 8.00% 8.00% Note: All amounts are as of plan calculation dates which are one fiscal year prior to the date shown. (l) - 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 CHANGES IN THE DISTRICT'S NET PENSION LIABILITY Volunteer Pension Plan Last 10 Fiscal Yearsl�1 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 Plan fiduciary net position - ending(b) 12/31/2015 $ 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 $ 2,721,030 District's net pension liability - ending (a) -(b) $ 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. 32 WINDSOR -SEVERANCE FIRE PROTECTION DISTRICT SCHEDULE OF THE DISTRICT'S NET PENSION LIABILITY AND RELATED RATIOS Volunteer Pension Plan Last 10 Fiscal Yearslil 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 12/31/15 12/31/14 $ 3,103,194 $ 3,068,836 (2,721,030) (2,726,622) $ 382,164 $ 342,214 87.68% 88.85% $ - $ N/A 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. 33 WINDSOR - SEVERANCE FIRE PROTECTION DISTRICT SCHEDULE OF ACTUARIAL DETERMINED AND ACTUAL CONTRIBUTIONS Volunteer Pension Plan Last 10 Fiscal Yearst" Actuarially determined contributions Actual contributions (2) Contribution deficiency (excess) District's covered -employee payroll Contributions as a percentage of covered -employee payroll 2014 $ 75,406 59,624 $ 15,782 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. - 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. 34 Required Supplementary Information Windsor -Severance Fire Protection District Budgetary Comparison Schedule General Fund Year Ended December 31, 2015 (With Comparative Totals for the Year Ended December 31, 2014) 2015 Variance Original Final with Final 2014 Budget Budget Actual Budget Actual REVENUES Taxes Intergovernmental Licenses and Permits Charges for Services Investment Earnings Other Revenues TOTAL REVENUES EXPENDITURES Current Administration Museum Firefighting Medical Rescue Services Fire Prevention Health and Safety Commuications Building Maintenance Equipment Maintenance Debt Service Debt Service Principal - - 123,311 (123,311) 118,119 Debt Service Interest - - 84,619 (84,619) 87,111 Capital Outlay - 487,424 (487,424) 916,125 TOTAL EXPENDITURES 4,876,024 4,876,024 4,586,339 289,685 4,634,002 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (142,020) (142,020) 554,186 677,462 54,230 OTHER FINANCING SOURCES (USES) Transfers In (Out) - 4,118 - - CHANGE IN FUND BALANCE (142,020) (142,020) 558,304 677,462 54,230 FUND BALANCE, BEGINNING 4,703,777 4,703,777 4,703,777 - 4,649,547 FUND BALANCE, ENDING $ 4,561,757 $ 4,561,757 $ 5,262,081 $ 677,462 $ 4,703,777 $ 4,572,254 $ 4,572,254 $ 4,610,732 $ 38,478 $ 4,133,192 165,353 165,353 230,799 14,390 14,390 8,295 161,750 161,750 331,380 151,194 163,557 - - 5,285 4,977 1,984 - - 13,385 13,385 150,405 4,734,004 4,734,004 5,140,525 387,777 4,688,232 1,929,213 1,929,213 1,283,806 645,407 1,170,795 - - 2,308 (2,308) 14,058 2,585,555 2,585,555 2,181,480 404,075 1,937,026 5,000 5,000 12,023 (7,023) 15,015 80,756 80,756 83,958 (3,202) 79,312 7,000 7,000 12,682 (5,682) 21,226 13,500 13,500 22,542 (9,042) 17,693 110,500 110,500 145,360 (34,860) 148,417 144,500 144,500 146,826 (2,326) 109,105 See the accompanying Independent Auditors' Report 35 Other Supplementary Information Windsor -Severance Fire Protection District Budgetary Comparison Schedule Capital Projects Fund Year Ended December 31, 2015 (With Comparative Totals for the Year Ended December 31, 2014) 2015 Original Final Budget Budget Actual Variance with Final 2014 Budget Actual REVENUES Investment Earnings $ 15 $ 15 5 3 $ (12) $ EXPENDITURES Current Firefighting Capital Outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers In (Out) CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING 13 900 (900) 7,238 18,940 18,940 - 18,940 6,505 18,940 18,940 900 18,040 13,743 (18,925) (18,925) (897) 18,028 (13,730) (4,118) (4,118) (18,925) (18,925) (5,015) 13,910 (13,730) 5,015 5,015 5,015 - 18,745 $ (13,910) $ (13,910) $ - $ 13,910 $ 5,015 See the accompanying Independent Auditors' Report 36 Windsor -Severance Fire Protection District Budgetary Comparison Schedule Debt Service Fund Year Ended December 31, 2015 (With Comparative Totals for the Year Ended December 31, 2014) 2015 REVENUES Taxes Investment Earnings TOTAL REVENUES EXPENDITURES Current Firefighting Debt Service Debt Service Principal Debt Service Interest TOTAL EXPENDITURES CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING Original Final Budget Budget 421,231 421,231 421,231 421,231 Actual Variance with final 2014 Budget Actual 424,021 $ 2,790 $ 425,317 149 149 139 424,170 2,939 425,456 7,062 7,062 6,690 372 3,489 396,506 396,506 285,000 111,506 275,000 - 111,506 (111,506) 119,756 403,568 403,568 403,196 372 398,245 17,663 17,663 20,974 3,311 27,211 350,322 350,322 350,322 - 323,111 367,985 $ 367,985 $ 371,296 $ 3,311 $ 35D,322 See the accompanying Independent Auditors' Report 37 Hello