HomeMy WebLinkAbout20152654.tiff RECEIVED
AUG 0 3 2015
WELD COUNTY
COMMISSIONERS
CARBON VALLEY PARK
AND RECREATION DISTRICT
Weld County, Colorado
FINANCIAL STATEMENTS
December 31, 2014
c 2015-2654
8 -5- IS S�oosB
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Position 1
Statement of Activities 2
Fund Financial Statements:
Balance Sheet- Governmental Funds 3
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 4
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 5
General Fund - Statement of Revenues, Expenditures and Change in
Fund Balance - Budget and Actual 6
Special Revenue Fund - Conservation Trust Fund - Statement of Revenues,
Expenditures and Change in Fund Balances - Budget and Actual 7
Notes to Financial Statements 8
SUPPLEMENTARY INFORMATION 25
Debt Service Fund - Schedule of Revenues, Expenditures and Change in
P 9
Fund Balances - Budget and Actual 26
OTHER INFORMATION 27
Schedule of Debt Service Requirements to Maturity 28
Summary of Assessed Valuation, Mill Levy and
Property Taxes Collected 31
Dazes►® Plutt LLC
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Carbon Valley Park and Recreation District
Weld County, Colorado
We have audited the accompanying financial statements of the governmental activities and each major
fund of Carbon Valley Park and Recreation District as of and for the year ended December 31, 2014,
and the related notes to the financial statements, which collectively comprise the District's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
♦ 7931 South Broadway#324 ♦ Littleton, Colorado 80122 ♦ phone (303)905-0809 ♦ fax(303)797-3334
♦ Member American Institute of Certified Public Accountants + Member Colorado Society of Certified Public Accountants •
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Carbon Valley
Park and Recreation District, as of December 31, 2014, and the respective changes in financial position
and the respective budgetary comparisons for the General Fund and the Special Revenue Fund —
Conservation Trust Fund for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Management has omitted the Management's Discussion and Analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic
or historical context. Our opinion on the basic financial statements is not affected by this missing
information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise Carbon Valley Park and Recreation District's basic financial statements. The
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual, for the Debt
Service Fund (the Supplementary Information) and the Schedule of Debt Service Requirements to
Maturity and the Summary of Assessed Valuation, Mill Levy and Property Taxes Collected (the Other
Information) are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The Supplementary Information was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Supplemental Information is
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Other Information has not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on
them.
iv**.. .o fix' . \-1-
July 24, 2015
I I
BASIC FINANCIAL STATEMENTS
CARBON VALLEY PARK AND RECREATION DISTRICT
STATEMENT OF NET POSITION
December 31, 2014
Governmental
Activities
ASSETS
Cash and investments $ 105,191
Cash and investments- Restricted 779,569
Receivable-County Treasurer 10,590
Property taxes receivable 2,571,235
Deposit 2,500
Prepaid expenditures 70,281
Capital assets, nondepreciable 185,847
Capital assets, net 9,268,172
Total assets 12,993,385
DEFERRED OUTFLOWS OF RESOURCES
Cost of bond refunding 380,245
Total deferred outflows of resources 380,245
LIABILITIES
Accounts payable 103,278
Payroll liabilities 45,875
Accrued interest payable 28,694
Noncurrent liabilities
Due within one year 657,918
Due in more than one year 6,066,681
Total liabilities 6,902,446
DEFERRED INFLOWS OF RESOURCES
Property tax revenue 2,571,235
Total deferred inflows of resources 2,571,235
NET POSITION
Net investment in capital assets 3,109,665
Restricted for:
Emergency reserves 86,500
Debt service 642,545
Conservation Trust Fund 54,072
Unrestricted 7,167
Total net position $ 3,899,949
These financial statements should be read only in connection with
the accompanying notes to financial statements.
1
72).- -a = as ti � � co a) coCONtnaOO
N C E C C N N N- Cfl O M O M N •- C'M NJ-
C (p N - O W CO M O N M ,- O 0) N N o)
r. O c O co- M N c c O
W C a
a C M N N In N 00 In M c0
... �, a) uv N N CO- M
15 CD
Q
Z r V Z Uo
N CO ,- N-
C C
(0 CO 6 CO NO ' L()
ar M CO N N
Q.
U 6 c
0 ea to
u)
a)
= u) L
'a C
C C O ' rn ' .4-
I-
co r
a) r C
a, ce 2 1+ Q o
F- E
u) RS r.iQ' i a C +0
Z o o E
er a •c �
O Wo vt v ?' N
Q I_ N N N ' N. ' N. O
W a) a) u)
• > ch p '2 cri ti co-
u) m O C
W V a) .C '� m rn 0) x o ac F' CIS) (O O) a) CO
cB E
a E 0 N Q OU Q- c O) -0 O
C
Z O 8 en ca c m-o a u) N
Q CO a) u) C Q) O C N
Z M In N C X C a) E®
c c CD, W _c o
CC W N r CO CO I
> as 3 E E rn o c c u) c
Q M 2 a) CONGO > aO V) oO O c) C_
a W C C LO- CO- O N t > '_ To L = = 4) >+
} ~ W o. I,- 0)
a)
a`) F- O o o E m
J FQ- (`a X r- r- CO) a) o aa) -c 0_ 0_ a) a
J co d cDacnz0 (° E
< >- 69 (" O ZZ No
0
co U
Z U (0
M N _c
M
E O w-
Q = c a)
V0, i^`` U)
2 W o. -C
N
O) i-
C
0 O a)Q o +.
V1 .. >
as c N
C N
Ta-
o
C
(D - a)
a) O E
U) V C)
E c 2 ` >
(Ld a) - _c o
E C O O)
O O
O a) ci o) O o
N >o cm i.....
c O) Eau')
o E • a)
c E < co
L• d
CARBON VALLEY PARK AND RECREATION DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2014
Debt Conservation Total
General Service Trust Governmental
Fund Fund Fund Funds
ASSETS
Cash and investments $ 105,191 $ - $ - $ 105,191
Cash and investments-Restricted 86,500 638,997 54,072 779,569
Receivable-County Treasurer 7,042 3,548 - 10,590
Prepaid expenditures 70,281 - - 70,281
Property taxes receivable 1,708,587 862,648 - 2,571,235
Deposit 2,500 - - 2,500
TOTAL ASSETS $ 1,980,101 $ 1,505,193 $ 54,072 $ 3,539,366
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 103,278 $ - $ - $ 103,278
Payroll liabilities 45,875 - - 45,875
Total liabilities 149,153 - - 149,153
DEFERRED INFLOWS OF RESOURCES
Property tax revenue 1,708,587 862,648 - 2,571,235
Total deferred inflows of resources 1,708,587 862,648 - 2,571,235
FUND BALANCE
Nonspendable 70,281 - - 70,281
Restricted for:
Emergency reserves 86,500 - - 86,500
Debt service - 642,545 - 642,545
Conservation Trust Fund - - 54,072 54,072
Unassigned (34,420) - - (34,420)
Total fund balances 122,361 642,545 54,072 818,978
TOTAL LIABILITIES DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE $ 1,980,101 $ 1,505,193 $ 54,072
Amounts reported for governmental activities in the statement of net position
are different because:
Deferred outflows of resources are not available to pay for current
period expenditures and,therefore,are not reported in the funds.
Cost of bond refunding 380,245
Capital assets used in governmental activities are not financial resources and,therefore,
are not reported in the funds. 9,454,019
Long-term liabilities, including bonds and capital leases payable, are not due
and payable in the current period and,therefore, are not reported in the funds.
Accrued interest payable (28,694)
Bonds payable (5,025,000)
Bond premium (241,204)
Capital lease payable (1,458,395)
Net position of governmental activities $ 3,899,949
These financial statements should be read only in connection with
the accompanying notes to the financial statements.
3
CARBON VALLEY PARK AND RECREATION DISTRICT
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended December 31,2014
Conservation Total
General Debt Service Trust Governmental
Fund Fund Fund Funds
REVENUES
Property taxes $ 1,713,302 $ 863,037 $ - $ 2,576,339
Specific ownership taxes 145,042 73,066 - 218,108
Lottery fund income - - 126,346 126,346
Net investment income 734 600 102 1,436
Charges for services
Recreation and sports program 524,882 - - 524,882
Punch card/Pass Revenue 405,163 - - 405,163
Concession Revenue 13,337 - - 13,337
Rental Revenue 30,392 - - 30,392
Fundraising revenue 13,945 - - 13,945
Grants and donations 2,201 - - 2,201
Miscellaneous income 9,276 - - 9,276
Other income 24,766 - - 24,766
Total revenues 2,883,040 936,703 126,448 3,946,191
EXPENDITURES
Administration 831,031 - - 831,031
Advertising 3,686 - - 3,686
Automobile expense 7,126 - - 7,126
Contribution/donations 100 - - 100
Dues and subscriptions 1,202 - - 1,202
Education and training expense 9,354 - - 9,354
Equipment expense 35,342 - - 35,342
Insurance 147,849 - - 147,849
Legal and accounting 138,397 - - 138,397
Miscellaneous expense 70,851 - - 70,851
County Treasurer's fees 25,748 12,970 - 38,718
Repairs and maintenance 54,476 - - 54,476
Travel 5,072 - - 5,072
Recreation Center 1,193,053 - - 1,193,053
Senior Program 48,319 - - 48,319
Athletic Programs 126,734 - - 126,734
Ballfield Maintenance 65,070 - - 65,070
Debt service
Lease expense 135,405 - - 135,405
Lease Interest expense 43,270 - - 43,270
Bond principal - 485,000 - 485,000
Bond interest - 180,787 - 180,787
Capital Improvements - - 111,107 111,107
Total expenditures 2,942,085 678,757 111,107 3,731,949
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (59,045) 257,946 15,341 214,242
NET CHANGE IN FUND BALANCES (59,045) 257,946 15,341 214,242
FUND BALANCES-BEGINNING
OF YEAR 181,406 384,599 38,731 604,736
FUND BALANCES -END OF YEAR $ 122,361 $ 642,545 $ 54,072 $ 818,978
These financial statements should be read only in connection with
the accompanying notes to the financial statements.
4
CARBON VALLEY PARK AND RECREATION DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2014
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - Total governmental funds $ 214,242
Governmental funds report capital outlays as expenditures. In the
statement of activities, capital outlay is not reported as an
expenditure. However, the statement of activities will report as
depreciation expense the allocation of the cost of any depreciable
asset over the estimated useful life of the asset.
Depreciation expense (265,059)
The issuance of long-term debt (e.g., bonds, leases) provides
current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Also, governmental
funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.
Principal payment- Bonds 485,000
Amortization of bond premium 45,304
Amortization of cost of refunding (71,420)
Principal payment- Capital lease 135,405
Some revenues/expenses reported in the statement of activities do
not require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds.
Accrued interest on liabilities - Change in liability 9,747
Changes in net position of governmental activities $ 553,219
These financial statements should be read only in connection with
the accompanying notes to financial statements.
5
CARBON VALLEY PARK AND RECREATION DISTRICT
GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES -BUDGET AND ACTUAL
Year Ended December 31,2014
Budgeted Variance with
Amounts Final Budget
Original/ Actual Positive
Final Amounts (Negative)
REVENUES
Property taxes $ 1,717,967 $ 1,713,302 $ (4,665)
Specific ownership taxes 96,425 145,042 48,617
Net investment income 3,000 734 (2,266)
Charges for services
Recreation and sports program 505,500 524,882 19,382
Punch card/Pass Revenue 415,000 405,163 (9,837)
' Concession Revenue 42,000 13,337 (28,663)
Rental Revenue 30,700 30,392 (308)
Fundraising revenue 19,000 13,945 (5,055)
Grants and donations 12,000 2,201 (9,799)
Miscellaneous income 16,000 9,276 (6,724)
Other income 24,767 24,766 (1)
Total revenues 2,882,359 2,883,040 681
EXPENDITURES
Administration 674,720 831,031 (156,311)
Advertising 3,000 3,686 (686)
Automobile expense 14,000 7,126 6,874
Contribution/donations 2,000 100 1,900
Dues and subscriptions 3,500 1,202 2,298
Education and training expense 18,000 9,354 8,646
Equipment expense 10,000 35,342 (25,342)
Insurance 122,000 147,849 (25,849)
Legal and accounting 148,500 138,397 10,103
Miscellaneous expense 60,000 70,851 (10,851)
County Treasurer's fees 27,931 25,748 2,183
Repairs and maintenance 70,000 54,476 15,524
Travel 10,000 5,072 4,928
Lease expense 84,191 135,405 (51,214)
Lease Interest expense - 43,270 (43,270)
Recreation Center 1,520,700 1,193,053 327,647
Senior Program 129,500 48,319 81,181
Athletic Programs 251,900 126,734 125,166
Ballfield Maintenance 39,300 65,070 (25,770)
Total expenditures 3,189,242 2,942,085 247,157
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (306,883) (59,045) 247,838
OTHER FINANCING SOURCES(USES)
Line of credit proceeds 200,000 - (200,000)
Line of credit repayment (200,000) - 200,000
Total other financing sources(uses) - -NET CHANGE IN FUND BALANCES (306,883) (59,045) 247,838
FUND BALANCES-BEGINNING OF YEAR 393,885 181,406 (212,479)
FUND BALANCES-END OF YEAR $ 87,002 $ 122,361 $ 35,359
These financial statements should be read only in connection with
the accompanying notes to financial statements.
6
1
CARBON VALLEY PARK AND RECREATION DISTRICT
SPECIAL REVENUE FUND - CONSERVATION TRUST FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
Year Ended December 31, 2014
Budgeted Variance with
Amounts Final Budget
Original/ Actual Positive
Final Amounts (Negative)
REVENUES
Net investment income $ - $ 102 $ 102
Lottery fund income 125,000 126,346 1,346
Total revenues 125,000 126,448 1,448
EXPENDITURES
Capital maintenance and improvements 111,000 111,107 (107)
Total expenditures 111,000 111,107 (107)
NET CHANGE IN FUND BALANCES 14,000 15,341 1,341
FUND BALANCES - BEGINNING OF YEAR - 38,731 38,731
FUND BALANCES - END OF YEAR $ 14,000 $ 54,072 $ 40,072
These financial statements should be read only in connection with
the accompanying notes to financial statements.
7
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 1 - DEFINITION OF REPORTING ENTITY
Carbon Valley Park and Recreation District (the District), a quasi-municipal corporation and
political subdivision of the State of Colorado, was organized in 1983 and is governed pursuant
to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes).
The District operates under a Service Plan approved by the County of Weld County, Colorado.
The District's service area is located in Weld County, Colorado including the communities of
Frederick, Firestone, Dacono and the surrounding rural area. The District was established to
construct and maintain parks and recreation facilities.
The District follows the Governmental Accounting Standards Board (GASB) accounting
pronouncements which provide guidance for determining which governmental activities,
organizations and functions should be included within the financial reporting entity. GASB
pronouncements set forth the financial accountability of a governmental organization's elected
governing body as the basic criterion for including a possible component governmental
organization in a primary government's legal entity. Financial accountability includes, but is not
limited to, appointment of a voting majority of the organization's governing body, ability to
impose its will on the organization, a potential for the organization to provide specific financial
benefits or burdens and fiscal dependency.
The District is not financially accountable for any other organization, nor is the District a
component unit of any other primary governmental entity.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant accounting policies of the District are described as follows:
Government-wide and Fund Financial Statements
The government-wide financial statements include the statement of net position and the
statement of activities. These financial statements include all of the activities of the District. For
the most part, the effect of interfund activity has been removed from these statements.
Governmental activities are normally supported by taxes.
The statement of net position reports all financial and capital resources of the District. The
difference between the assets plus deferred outflows of resources and liabilities plus deferred
inflows of resources of the District is reported as net position.
The statement of activities demonstrates the degree to which the direct and indirect expenses of
a given function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues. Separate financial statements are provided for the governmental funds. Major
individual governmental funds are reported as separate columns in the fund financial
statements.
8
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of
the current period. For this purpose, the government considers revenues to be available if they
are collected within 60 days of the end of the current fiscal period. The major sources of
revenue susceptible to accrual are property taxes and user fees. All other revenue items are
considered to be measurable and available only when cash is received by the District.
Expenditures, other than interest on long-term obligations, are recorded when the liability is
incurred or the long-term obligation is due.
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Special Revenue — Conservation Trust Fund is used to account for conservation trust
revenues and expenditures incurred for eligible costs.
The Debt Service Fund accounts for the resources accumulated and payments made for
principal and interest on long-term general obligation debt of the governmental funds.
When both restricted and unrestricted resources are available for use, it is the government's
policy to use restricted resources first, then unrestricted resources as they are needed.
Budgets
In accordance with the State Budget Law, the District's Board of Directors holds public hearings
in the fall of each year to approve the budget and appropriate the funds for the ensuing year.
The appropriation is at the total fund expenditures and other financing uses level and lapses at
year end. The District's Board of Directors can modify the budget by line item within the total
appropriation without notification. The appropriation can only be modified upon completion of
notification and publication requirements. The budget includes each fund on its basis of
accounting unless otherwise indicated.
9
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pooled Cash and Investments
The District follows the practice of pooling cash and investments of all funds to maximize
investment earnings. Except when required by trust or other agreements, all cash is deposited
to and disbursed from a single bank account. Cash in excess of immediate operating
requirements is pooled for deposit and investment flexibility. Interest earnings are allocated
periodically to the participating funds based upon each fund's average equity balance in total
cash and investments.
Investments are carried at fair value.
Property Taxes
Property taxes are levied by the District's Board of Directors. The levy is based on assessed
valuations determined by the County Assessor generally as of January 1 of each year. The levy
is normally set by December 15 by certification to the County Commissioners to put the tax lien
on the individual properties as of January 1 of the following year. The County Treasurer collects
the determined taxes during the ensuing calendar year. The taxes are payable by April or if in
equal installments, at the taxpayer's election, in February and June. Delinquent taxpayers are
notified in August and generally sales of the tax liens on delinquent properties are held in
November or December. The County Treasurer remits the taxes collected monthly to the
District.
Property taxes, net of estimated uncollectible taxes, are recorded initially as a deferred inflow of
resources in the year they are levied and measurable. The property tax revenues are recorded
as revenue in the year they are available or collected.
Capital Assets
Capital assets, which include property, plant and equipment, are reported in the governmental
activities columns in the government-wide financial statements. Capital assets are defined by
the District as assets with an initial, individual cost of more than $5,000. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized. Improvements are capitalized and
depreciated over the remaining useful lives of the related fixed assets, as applicable.
Depreciation expense has been computed using the straight-line method over the following
estimated economic useful lives:
Building and improvements 7-50 years
Equipment 5-10 years
Vehicles 7 years
10
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Original Issue Discount/Premium
In the government-wide financial statements, bond discounts and premiums are deferred and
amortized over the life of the bonds using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance
costs, whether or not withheld from the actual debt proceeds received, are expensed when
incurred as debt service expenditures.
Compensated Absences
Obligations associated with the District's vacation policy are recorded as a liabilities and
expenses when earned to the extent that such benefits vest to the employee, in the
government-wide financial statements. The amount of accrued and unpaid balance due under
this policy is considered a long-term liability. The District has no liability for accrued
compensated absences at December 31, 2014.
Fund Equity
Fund balance for governmental funds should be reported in classifications that comprise a
hierarchy based on the extent to which the government is bound to honor constraints on the
specific purposes for which spending can occur. Governmental funds report up to five
classifications of fund balance: nonspendable, restricted, committed, assigned, and unassigned.
Because circumstances differ among governments, not every government or every
governmental fund will present all of these components. The following classifications describe
the relative strength of the spending constraints:
• Nonspendable fund balance—The portion of fund balance that cannot be spent because
it is either not in spendable form (such as prepaid amounts or inventory) or legally or
contractually required to be maintained intact.
• Restricted fund balance — The portion of fund balance that is constrained to being used
for a specific purpose by external parties (such as bondholders), constitutional
provisions, or enabling legislation.
• Committed fund balance —The portion of fund balance that can only be used for specific
purposes pursuant to constraints imposed by formal action of the government's highest
level of decision-making authority, the Board of Directors. The constraint may be
removed or changed only through formal action of the Board of Directors.
11
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Assigned fund balance — The portion of fund balance that is constrained by the
government's intent to be used for specific purposes, but is neither restricted nor
committed. Intent is expressed by the Board of Directors to be used for a specific
purpose. Constraints imposed on the use of assigned amounts are more easily removed
or modified than those imposed on amounts that are classified as committed.
• Unassigned fund balance — The residual portion of fund balance that does not meet any
of the criteria described above.
If more than one classification of fund balances is available for use when an expenditure is
incurred, it is the District's policy to use the most restrictive classification first.
NOTE 3 - CASH AND INVESTMENTS
Cash and investments as of December 31, 2014, are classified in the accompanying financial
statements as follows:
Statement of net position:
Cash and investments $ 105,191
Cash and investments - restricted 779,569
Total cash and investments $ 884,760
Cash and investments as of December 31, 2014, consist of the following:
Deposits with financial institutions $ 479,435
Investments 405,325
Total cash and investments $ 884,760
Cash Deposits
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government
deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts
on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is
determined by the PDPA. PDPA allows the institution to create a single collateral pool for all
public funds. The pool for all the uninsured public deposits as a group is to be maintained by
another institution or held in trust. The market value of the collateral must be at least 102% of
the aggregate uninsured deposits.
The State Commissioners for banks and financial services are required by statute to monitor the
naming of eligible depositories and reporting of the uninsured deposits and assets maintained in
the collateral pools.
At December 31, 2014, the District's cash deposits had a bank balance of $523,589 and a
carrying balance of$479,435.
12
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
Investments
The District has not adopted a formal investment policy; however, the District follows state
statutes regarding investments.
The District generally limits its concentration of investments to those noted with an asterisk (*)
below, which are believed to have minimal credit risk, minimal interest rate risk and no foreign
currency risk. Additionally, the District is not subject to concentration risk disclosure
requirements or subject to investment custodial credit risk for investments that are in the
possession of another party.
Colorado revised statutes limit investment maturities to five years or less unless formally
approved by the Board of Directors. Such actions are generally associated with a debt service
reserve or sinking fund requirements.
Revenue bonds of local government securities, corporate and bank securities and guaranteed
investment contracts not purchased with bond proceeds are limited to maturities of three years
or less.
Colorado statutes specify investment instruments meeting defined rating and risk criteria in
which local governments may invest which include:
Obligations of the United States, certain U.S. government agency securities and
securities of the World Bank
General obligation and revenue bonds of U.S. local government entities
Certain certificates of participation
Certain securities lending agreements
Bankers' acceptances of certain banks
Commercial paper
Written repurchase agreements and certain reverse repurchase agreements
collateralized by certain authorized securities
Certain money market funds
Guaranteed investment contracts
* Local government investment pools
As of December 31, 2014, the District had the following investments:
Investment Maturity Fair Value
Colorado Local Government Liquid Asset Weighted average
Trust (Colotrust) under 60 days $405,325
13
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
COLOTRUST
The District invested in the Colorado Local Government Liquid Asset Trust (the Trust), an
investment vehicle established for local government entities in Colorado to pool surplus funds.
The State Securities Commissioner administers and enforces all State statutes governing the
Trust. The Trust operates similarly to a money market fund and each share is equal in value to
$1.00. The Trust offers shares in two portfolios, COLOTRUST PRIME and COLOTRUST
PLUS+. Both portfolios may invest in U.S. Treasury securities and repurchase agreements
collateralized by U.S. Treasury securities. COLOTRUST PLUS+ may also invest in certain
obligations of U.S. government agencies, highest rated commercial paper and repurchase
agreements collateralized by certain obligations of U.S. government agencies. A designated
custodial bank serves as custodian for the Trust's portfolios pursuant to a custodian agreement.
The custodian acts as safekeeping agent for the Trust's investment portfolios and provides
services as the depository in connection with direct investments and withdrawals. The
custodian's internal records segregate investments owned by the Trust. The Trust is rated
AAAm by Standard & Poor's.
14
CARBON VALLEY PARK& RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 4 - CAPITAL ASSETS
An analysis of the changes in capital assets for the year ended December 31, 2014, follows:
Balance at Balance at
December 31, Deletions/ December 31,
2013 Additions Adjustment 2014
Governmental Activities:
Capital assets, nondepreciable:
Land $ 185,847 $ - $ - $ 185,847
Total capital assets, nondepreciable 185,847 - - 185,847
Capital assets, being depreciated:
Building and improvements 11,692,836 - - 11,692,836
Equipment 500,414 - - 500,414
Vehicles 108,535 - - 108,535
Total capital assets, being depreciated 12,301,785 - - 12,301,785
Less accumulated depreciation for:
Building and improvements (2,180,677) (240,309) - (2,420,986)
Equipment (480,429) (19,985) - (500,414)
Vehicles (107,448) (4,765) - (112,213)
Total accumulated depreciation (2,768,554) (265,059) - (3,033,613)
Total capital assets, being
depreciated, net 9,533,231 (265,059) - 9,268,172
Governmental activities
capital assets, net $ 9,719,078 $ (265,059) $ - $ 9,454,019
Depreciation expense for the year ended December 31, 2014, was charged to the swimming
pool, recreation and sports program activities.
15
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 5 - LONG-TERM OBLIGATIONS
The following is an analysis of the changes in the District's long-term obligations for the year
ended December 31, 2014:
Balance at Balance at Due
December 31, December 31, Within
2013 Additions Reductions 2014 One Year
General obligation bonds,
Series 2010 issue $ 5,510,000 $ - $ 485,000 $ 5,025,000 $ 495,000
Bond premium 286,508 - 45,304 241,204 42,874
Capital leases,
2009 lease 1,549,655 - 114,108 1,435,547 97,196
2012 lease 44,145 - 21,297 22,848 22,848
$ 7,390,308 $ - $ 665,709 $ 6,724,599 $ 657,918
General Obligation Bonds
$6,180,000 General Obligation Refunding Bonds, Series 2010, dated August 31, 2010, with
interest of 0.75% to 4.00%. Interest is payable semi-annually on June 1 and December 1,
beginning on December 1, 2010. The bonds are subject to redemption prior to maturity, at the
option of the District, without redemption premium, beginning December 1, 2020. Proceeds of
the bonds were used to advance refund a portion of the District's outstanding General
Obligation Bonds, Series 2002, and to pay the costs of issuing the bonds.
The bonds are general obligations of the District, secured by a pledge of the full faith and credit
of the District and payable from the general ad valorem taxes which may be levied without
limitation of rate and in an amount necessary to pay the bonds when due against all taxable
property within the District.
The annual requirement to amortize the District's bonds is as follows:
Principal Interest Total
2015 $ 495,000 $ 171,088 $ 666,088
2016 500,000 159,950 659,950
2017 525,000 147,450 672,450
2018 530,000 133,012 663,012
2019 550,000 111,813 661,813
2020-2023 2,425,000 239,212 2,664,212
$ 5,025,000 $ 962,525 $ 5,987,525
16
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED)
Capital Leases
2009 Building Lease
On May 1, 2009, the District entered into a Lease Agreement with Valley Bank & Trust for the
purpose of financing a portion of the acquisition, construction and installation of a Senior Center
and Gymnasium. Under the Agreement, the District agrees to sublease property from which
Valley Bank & Trust has a leasehold interest in the land, the premises, building and
improvements situated or to be situated on the land. The lease agreement qualifies as a capital
lease for accounting proposes and, therefore, has been recorded at the present value of the
future minimum lease payment as of the inception date. The lease was capitalized in the
amount of $1,800,000 and bears interest at a rate of 4.00%. The District is required to make
semi-annual payments due on April 1, and October 1, beginning on October 1, 2009, and
ending on April 1, 2029.
2012 Equipment Lease
On December 14, 2012, the District entered into a Lease Agreement with Kansas State Bank of
Manhattan for the purpose of acquiring cardiovascular equipment. The lease agreement
qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payment as the of the inception date. The lease was
capitalized in the amount of $82,500 and bears interest at a rate of 7.05%. The District is
required to make semi-annual payments beginning on January 15, 2012, and ending on
December 15, 2015.
The assets acquired through capital leases are as follows:
Assets:
Building and improvements $ 1,800,000
Cardio equipment 82,500
Less: accumulated depreciation (284,377)
Total $ 1,598,123
17
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 5 - LONG-TERM OBLIGATIONS (CONTINUED)
The future minimum lease obligations and the net present value of these minimum lease
payments as of December 31, 2014, were as follows:
Year ending December 31,
2015 $ 178,667
2016 154,944
2017 154,944
2018 154,944
2019-2023 774,723
2024-2026 418,985
Total minimum lease payments 1,837,208
Less: Amount representing interest (378,812)
Present value of minimum lease payments $ 1,458,397
Current portion $ 120,044
Long-term portion $ 1,338,351
Authorized Debt
The District has no remaining authorized but unissued general obligation indebtedness.
NOTE 6 - NET POSITION
The District has net position consisting of three components — net investment in capital assets,
restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation, and
is reduced by the outstanding balances of bonds, mortgages, notes or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets. As of December
31, 2014, the District had net investment in capital assets calculated as follows:
Governmental
Activities
Net investment in capital assets:
Capital assets, net $ 9,454,019
Cost of bond refunding 380,245
Current portion of outstanding long-term obligations (615,044)
Noncurrent portion of outstanding long-term obligations (5,868,351)
Bond premium, net (241,204)
Total net investment in capital assets $ 3,109,665
18
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 6 - NET POSITION (CONTINUED)
Restricted net position includes assets that are restricted for use either externally imposed by
creditors, grantors, contributors, or laws and regulations of either governments or imposed by
law through constitutional provisions or enabling legislation. The District had restricted net
position of$753,427 as of December 31, 2014, as follows:
Restricted net position:
Emergence reserves $ 86,500
Debt service 642,545
Conservation Trust Fund 54.072
Total restricted net position $ 783.117
The District's unrestricted net position as of December 31, 2014, totaled $7,167.
NOTE 7 — INTERGOVERNMENTAL AGREEMENTS
City of Dacono
On November 28, 2001, the District and the City of Dacono ("City") entered into an
intergovernmental agreement to set forth the general understandings of the parties regarding
their relationship and their provision of recreation facilities and services within the City and the
District. The District and the City acknowledge and agree that they will have the following
general responsibilities with respect to the following matters of mutual interest to the District and
the City:
• The City will continue to use its best efforts to require developments within the City that
are not currently within the District to file a petition for inclusion with the District.
• The City will give the District the opportunity to comment on development proposals on
all new developments within the City no later than 25 days prior to the Planning
Commission's consideration of such development proposal.
• The City will own and develop the neighborhood, area and regional parks within the City.
• The City will continue to pay for the watering of the inside and surrounding areas of the
regional parks within the City.
• The District will expend District capital improvements and maintenance funds within the
City, in amounts not less than the ratio of the total assessed valuation of all taxable
property within the District. This capital improvement and maintenance expenditure
allocation shall not apply to bond proceeds and shall be reviewed on a three-year basis
commencing in the year 2001.
• The District will operate, maintain and manage the inside (other than watering) of the
sports fields and other recreational facilities within the City, including the BMX Facility.
Such maintenance shall include all necessary moving and provision of porta-potties
during its seasonal use. The City will provide dumpsters and trash service.
The term of this agreement will remain in effect until December 31, 2015, unless sooner
terminated by mutual written agreement.
19
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 7 - INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
Town of Frederick
On April 27, 2006, the District and the Town of Frederick ("Town") entered into an
intergovernmental agreement to set forth the general understandings of the Parties regarding
their relationship and their provision of recreation facilities and services within the Town and the
District. The District and the Town acknowledge and agree that they will have the following
general responsibilities with respect to the following matters of mutual interest to the District and
the Town:
• The Town will continue to require developments within the Town that are not currently
within the District to file a petition for inclusion with the District.
• The Town will give the District the opportunity to comment on development proposals on
all new developments within the Town no later than 21 days prior to the Planning
Commission's consideration of such development proposal.
• The Town will own and develop the St. Vrain Legacy Trail within the Town limits.
• The District will expend District capital improvements and maintenance funds within the
Town, in amounts not less than the ratio of the total assessed valuation of all taxable
property within the District. This capital improvement and maintenance expenditure
allocation shall not apply to bond proceeds and shall be reviewed on a three-year basis
commencing in the year 2007.
• The District will operate, maintain and manage the inside (other than watering) of
mutually agreed upon sports fields and/or other recreation facilities within the Town.
• The District shall be responsible for cleaning of all areas and facilities used by it, and for
the supervision of players and programs, and shall hold harmless the Town from any
and all liability resulting there from.
• With respect to the Lighted Ball Field on Block 29, the District agrees to pay all
power/lighting costs associated with its use. The parties agree to evenly split the cost of
all water used. The District is required to perform routine maintenance on the lighted ball
field to include the following: mow and water the grassed areas weekly; daily trash
pickup and maintenance of facilities; and other grounds keeping as agreed upon by the
Parties. The terms of the use of the facilities on Block 29 are further clarified in the July
2012 Agreement for Joint Use of Facilities between the District, the Town and the St.
Vrain School District RE-1J.
The term of this agreement will remain in effect until December 31, 2021, unless sooner
terminated by mutual written agreement.
Town of Firestone
On March 11, 2010, the District and the Town of Firestone ("Town") entered into an
intergovernmental agreement to set forth the general understandings of the Parties regarding
their relationship and their provision of recreation facilities and services within the Town and the
District. The District and the Town acknowledge and agree that they will have the following
general responsibilities with respect to the following matters of mutual interest to the District and
the Town:
• The Town will continue to use its best efforts to require developments within the Town
that are not currently within the District to file a petition for inclusion with the District.
20
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 7- INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
• The Town will give the District the opportunity to comment on development proposals on
all new developments within the Town no later than 15 days prior to the Planning
Commission's consideration of such development proposal.
• The Town will own and develop the Firestone Trail.
• The Town will own and develop the neighborhood, area and regional parks within the
Town.
• The District will use reasonable efforts to annually expend District budgeted capital
improvements and maintenance funds within the Town, in amounts not less than the
ratio of the total assessed valuation of all taxable property within the District. This capital
improvement and maintenance expenditure allocation shall not apply to bond proceeds
and shall not be construed to require any appropriation to create any financial liability on
the part of the District.
• The agreement further clarifies the joint use for specific parks with the Town.
The term of this agreement will remain in effect until December 31, 2014, unless sooner
terminated by mutual written agreement. On November 20, 2013, this agreement was extended
to December 31, 2014. Subsequent to year end, on January 14, 2015, this agreement was
extended to December 31, 2019.
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
The District contributes to the Local Government Division Trust Fund ("LGDTF"), a cost-sharing
multiple-employer defined benefit pension plan administered by the Public Employees'
Retirement Association of Colorado ("PERA"). The LGDTF provides retirement and disability,
post-retirement annual increases, and death benefits for members or their beneficiaries. All
employees of the District are members of the LGDTF. A report may be obtained by writing to
PERA at 1301 Pennsylvania Street, Denver, Colorado 80203 or by calling PERA at 303-832-
9550 or 1-800-759-PERA (7372).
Plan members and the District are required to contribute to the Trust at rates set by Colorado
Statutes. The contribution requirements of plan members and the District are established under
Title 24, Article 51, Part 4 of the C.R.S., as amended. For 2014, the contribution rate for
members is 8.00% and for the District it is 10.00% of covered salary. A portion of the District's
contribution of 1.02% of covered salary is allocated to the Health Care Trust Fund (see Note
10).
The District is also required to pay an amortization equalization disbursement (AED) equal to
2.20% of the total payroll and a supplemental amortization equalization disbursement (SAED)
equal to 1.50% of the total payroll for the calendar years 2011 through 2013.
If the District rehires a PERA retiree as an employee or under any other work arrangement, it is
required to report and pay employer contributions (including AED and SAED) on the amounts
paid for the retiree. Effective January 1, 2011, working retiree contributions are required at the
same 8.00% member contribution rate.
21
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 8 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
For the years ending December 31, 2012, 2013, and 2014, the District's employer contributions
to the LGDTF were $182,296, $209,688 and $173,676 respectively, equal to their required
contribution for the year.
NOTE 9 - POSTEMPLOYMENT HEALTHCARE BENEFITS
The District contributes to the Health Care Trust Fund (HCTF), a cost-sharing multiple-employer
healthcare trust administered by PERA. The HCTF provides a health care premium subsidy to
PERA participating benefit recipients and their eligible beneficiaries. Title 24, Article 51, Part 12
of the C.R.S., as amended, assigns the authority to establish the HCTF benefit provisions to the
State Legislature. PERA issues a publicly available annual financial report that includes financial
statements and required supplementary information for the HCTF. That report may be obtained
online at www.copera.org or by writing to PERA of Colorado, 1301 Pennsylvania Street, Denver,
Colorado 80203 or by calling PERA at 303-832-9550 or 1-800-759-PERA (7372).
For 2014, the District is required to contribute at a rate of 1.02% for all PERA members as set
by statute. No member contributions are required. The contribution requirements for the District
are established under Title 24, Article 51, Part 4 of the C.R.S., as amended. The apportionment
of the contribution to the HCTF is established under Title 24, Article 51, Section 208 of the
C.R.S., as amended. For the years ending December 31, 2012, 2013, and 2014, the District's
employer contributions to the HCTF were $13,562, $22,233, and $13,971, respectively.
NOTE 10 -VOLUNTARY INVESTMENT PROGRAM
Employees of the District who are members of the LGDTF (see Note 8) may voluntarily
contribute to the Voluntary Investment Program, (401(k) Plan), an Internal Revenue Code
Section 401(k) defined contribution plan administered by PERA. Plan participation is voluntary,
and contributions are separate from others made to PERA. Title 24, Article 51, Part 14 of the
C.R.S., as amended, assigns the authority to establish the 401(k) Plan provisions to the State
Legislature. PERA issues a publicly available annual financial report that includes financial
statements and required supplementary information for the 401(k) plan. That report may be
obtained online at www.copera.org or by writing to PERA of Colorado, 1301 Pennsylvania
Street, Denver, Colorado 80203 or by calling PERA at 303-832-9550 or 1-800-759-PERA
(7372).
The 401(k) Plan is funded by voluntary member contributions up to a maximum limit set by the
IRS ($17,500 for calendar year 2013, $17,000 for calendar year 2012, and $16,500 for calendar
year 2011). In addition, catch-up contributions, up to $5,500 for the calendar year were allowed
for participants who had attained age 50 before the close of the plan year, subject to the
limitations of IRC ss414(v). The contribution requirements for the District are established under
Title 24, Article 51, Section 1402 of the C.R.S., as amended. For the years ending December
31, 2012, 2013, and 2014, the 401(k) Plan member contributions from the District were $11,551,
$12,348 and $361, respectively.
22
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 11 -COMMITMENTS AND CONTINGENCIES
Grant Programs
The District participates in various grant programs, which are subject to review by the grantor
agencies. Such review could lead to a request for reimbursements to grantor agencies for
expenditures disallowed under the terms of the grant. District management believes
disallowances, if any, will be insignificant.
NOTE 12 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; thefts of, damage to, or
destruction of assets; errors or omissions; injuries to employees; or acts of God.
The District is a member of the Colorado Special Districts Property and Liability Pool (Pool) as
of December 31, 2014. The Pool is an organization created by intergovernmental agreement to
provide property, liability, public official's liability, boiler and machinery and workers
compensation coverage to its members. Settled claims have not exceeded this coverage in any
of the past three fiscal years.
The District pays annual premiums to the Pool for liability, property, public official's liability and
workers compensation coverage. In the event aggregated I p gosses incurred by the Pool exceed
amounts recoverable from reinsurance contracts and funds accumulated by the Pool, the Pool
may require additional contributions from the Pool members. Any excess funds which the Pool
determines are not needed for purposes of the Pool may be returned to the members pursuant
to a distribution formula.
NOTE 13 -TAX, SPENDING AND DEBT LIMITATIONS
Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer's Bill of
Rights (TABOR), contains tax, spending, revenue and debt limitations that apply to the State of
Colorado and all local governments.
Spending and revenue limits are determined based on the prior year's Fiscal Year Spending
adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is
generally defined as expenditures plus reserve increases with certain exceptions. Revenue in
excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention
of such revenue.
TABOR requires local governments to establish Emergency Reserves. These reserves must be
at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are
not allowed to use the emergency reserves to compensate for economic conditions, revenue
shortfalls, or salary or benefit increases. TABOR reserve is not provided when the District's
ending fund balance is deficit.
23
CARBON VALLEY PARK & RECREATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 13 -TAX, SPENDING AND DEBT LIMITATIONS (CONTINUED)
In November 1996, the registered voters of the District voted to allow the District to collect,
retain, and expend all revenues and other funds generated from its current general fund
property tax mill levy of 4.427 mills, from fees and charges and all other sources, effective
January 1, 1996, and continuing thereafter, and be used to provide District services as a voter
approved revenue change, offset and an exception to the limits imposed by Article X, Section 20
of the Colorado Constitution, Section 29-1-301, C.R.S. This effectively removed all revenue and
spending limits imposed by the Amendment.
The District's management believes it is in compliance with the provisions of TABOR. However,
TABOR is complex and subject to interpretation. Many of the provisions, including the
interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation.
NOTE 14— NEW PRONOUNCEMENT
The GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions
(Statement No.68), which revises and establishes new financial reporting requirements for most
governments that provide their employees with pension benefits. The District provides its
employees with pension benefits through a multiple employer cost-sharing defined benefit
retirement program administered by the Public Employees' Retirement Association of Colorado
(PERA).
Statement No. 68 requires cost-sharing employers participating in the PERA program, such as
the District, to record their proportionate share, as defined in Statement No. 68, of PERA's
unfunded pension liability. The District has no legal obligation to fund this shortfall nor does it
have any ability to affect funding, benefits, or annual required contribution decisions made by
PERA. The requirement of Statement No. 68 to record a portion of PERA's unfunded liability will
negatively impact the District's future unrestricted net position. Statement No. 68 is effective for
the fiscal year 2015. At this time, District management is unable to estimate the magnitude of
this impact. Information regarding PERA's current funding status can be found in its
Comprehensive Annual Financial Report.
This information is an integral part of the accompanying financial statements.
24
SUPPLEMENTARY INFORMATION
25
CARBON VALLEY PARK AND RECREATION DISTRICT
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
Year Ended December 31, 2014
Budgeted Variance with
Amounts Final Budget
Original/ Actual Positive
Final Amounts (Negative)
REVENUES
Property taxes $ 870,424 $ 863,037 $ (7,387)
Specific ownership taxes 48,575 73,066 24,491
Net investment income - 600 600
Total revenues 918,999 936,703 17,704
EXPENDITURES
County Treasurer's fees 14,069 12,970 1,099
Debt service
Bond principal 485,000 485,000 -
Bond interest 275,270 180,787 94,483
Paying agent fees 2,500 - 2,500
Total expenditures 776,839 678,757 98,082
NET CHANGE IN FUND BALANCES 142,160 257,946 115,786
FUND BALANCES - BEGINNING OF YEAR - 384,599 384,599
FUND BALANCES - END OF YEAR $ 142,160 $ 642,545 $ 500,385
26
OTHER INFORMATION
27
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2014
$6,180,000
General Obligation Bonds, Series 2010
Dated August 31, 2010
Interest Rate 0.75% to 4.00%
Bonds and Interest Interest Payable June 1 and December 1
Maturing in the Year Principal Due December 1
Ending December 31, Principal Interest Total
2015 $ 495,000 $ 171,088 $ 666,088
2016 500,000 159,950 659,950
2017 525,000 147,450 672,450
2018 530,000 133,012 663,012
2019 550,000 111,813 661,813
2020 575,000 89,812 664,812
2021 600,000 74,000 674,000
2022 615,000 50,000 665,000
2023 635,000 25,400 660,400
$ 5,025,000 $ 962,525 $ 5,987,525
28
I
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2014
$1,800,000
Capital Lease, 2009
Dated May 1, 2009
Bonds and Interest Interest Rate 4.00%
Maturing in the Year Interest and Principal Payable April 1 and October 1
Ending December 31, Principal Interest Total
2015 $ 97,196 $ 57,748 $ 154,944
2016 102,424 52,520 154,944
2017 106,562 48,382 154,944
2018 110,867 44,077 154,944
2019 115,347 39,598 154,945
2020 120,007 34,938 154,944
2021 124,855 30,090 154,945
2022 129,899 25,045 154,944
2023 135,147 19,797 154,944
2024 140,607 14,338 154,945
2025 146,287 8,657 154,944
2026 106,349 2,747 109,096
$ 1,435,547 $ 377,937 $ 1,813,484
29
CARBON VALLEY PARK AND RECREATION DISTRICT
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2014
$82,500
Capital Lease, 2012
Dated December 14, 2012
Bonds and Interest Interest Rate 7.05%
Maturing in the Year Interest and Principal Payable Monthly on the 15th Day
Ending December 31, Principal Interest Total
2015 $ 22,848 $ 875 $ 23,723
$ 22,848 $ 875 $ 23,723
30
CARBON VALLEY PARK AND RECREATION DISTRICT
SUMMARY OF ASSESSED VALUATION,
MILL LEVY AND PROPERTY TAXES COLLECTED
Year Ended December 31, 2014
Prior
Year Assessed
Valuation
for Current Percentage
Year Ended Year Property Mills Total Property Taxes Collected
December 31. Tax Levy Levied (1) (2) Levied Collected to Levied
2010 $ 299,678,140 6.657 $ 1,994,957 $ 1,959,268 98.2%
2011 $ 302,898,970 6.657 $ 2,016,399 $ 2,015,043 99.9%
2012 $ 373,579,410 6.657 $ 2,489,618 $ 2,393,374 96.1%
2013 $ 413,761,430 6.657 $ 2,754,410 $ 2,688,664 97.6%
2014 $ 390,324,640 6.657 $ 2,598,398 $ 2,576,339 99.2%
Estimated for
the year ending
December 31,
2015 $ 383,194,650 6.710 $ 2,571,235
(1) The total mill levy of 6.657 mills is made up of 4.427 for general operations and 2.230 for debt service.
(2) For the 2015 total mill levy of 6.710 mills is made up of 4.427 for general operations, 2.230 for debt
service and 0.053 for refunds and abatements.
Note:
Property taxes collected in any one year include collection of delinquent property taxes assessed in prior
years, as well as reductions for property tax refunds or abatements. Information received from the County
Treasurer does not permit identification of specific year of assessment.
31
Hello