HomeMy WebLinkAbout20152019.tiff Windsor-Severance Fire Protection District
Financial Statements
With
Independent Auditors' Report
For the Year Ended
December 31, 2014
/ /6)-i 2015-2019
-7_ g-1 S SD 0083
Windsor-Severance Fire Protection District
Table of Contents
PAGE
INTRODUCTORY SECTION
Table of Contents
Management's Discussion and Analysis M1 - M7
FINANCIAL SECTION
Independent Auditors' Report 1 - 2
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position 3
Statement of Activities 4
Fund Financial Statements:
Balance Sheet— Governmental Funds 5
Statement of Revenues, Expenditures and Change in Fund Balances -
p g
Governmental Funds 6
Notes to Financial Statements 7 - 21
Required Supplementary Information
Schedule of Funding Progress 22
Budgetary Comparison Schedule — General Fund 23
Other Supplementary Information
Budgetary Comparison Schedule — Capital Projects Fund 24
Budgetary Comparison Schedule — Debt Service Fund 25
Windsor-Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2014
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, 2014. 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 2014 to be collected during 2015.
Financial Highlights
The District financial status increased over the course of the 2014 fiscal year. Total net position increased 8
percent.
Governmental activities tax revenues account for $4,222,161 or 93.3 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$407.199 or 8.3 percent of total revenues of$4,934,317.
The District had $4,224,779 in expenses related to governmental activities; only $407,199 of these
expenses were offset by program specific charges for services and operating grants and contributions.
General property and specific ownership taxes of$4,558,509 and $9,756 in other revenues were adequate
to provide for these programs.
Outlay for capital assets primarily comprised of the construction and furnishing of a Fire Station in
Severance. 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$429,580 or 6.9 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, 2014
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 5-6 of this report.
M2
Windsor-Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2014
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 -23 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 budgetary comparison schedule for the general fund on page 23, and other
supplementary information shown on pages 24 and 25.
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, 2014, than they were at December 31, 2013,
increasing 8 percent to$8,575.993. Table 1 provides a summary of the District's Net Position.
Table 1:
CONDENSED STATEMENT OF NET POSITION
Governmental
Activities
2014 2013
ASSETS
Current Assets $ 10.115,413 $ 9,645,933
Capital Assets Net 9.324,091 9.127,291
Total Assets 19.439.504 18.773.224
DEFERRED OUTFLOW OF
FINANCIAL RESOURCES
Charge on Refunding 17.462 22,990
LIABILITIES
Current Liabilities 360,732 383,919
Noncurrent Liabilities 5,804,868 6,234,448
Total Liabilities 6.165.600 6,618,367
DEFERRED INFLOW OF
FINANCIAL RESOURCES
Deferred Property Taxes 4,715,373 4,291,392
NET POSITION
Net Investment in Capital Assets 3.536.685 2,915.833
Restricted 503.295 551,567
Unrestricted 4,536,013 4,419,055
Total Net Position $ 8,575,993 $ 7,886,455
M3
Windsor-Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2014
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
2014 2013
PROGRAM REVENUES
Charges for Services $ 171,852 $ 261,680
Operating Grants&Contributions 82,824 66,651
Capital Grants&Contributions 152,523 206,400
Total Program Revenues 407,199 534,731
GENERAL REVENUES
Property Taxes 4,222,161 4,159,327
Specific Ownership Taxes 336,348 304,776
Investment Earnings 2,136 8,414
Other Revenues 9,756 11,912
Gain on Sale of Capital Assets 22,966 3,702
Transfers (66,249) (125,873)
Total General Revenues and Transfers 4,527,118 4,362,258
Total Revenues 4,934,317 4,896,989
PROGRAM EXPENSES
Administration 1,288,084 1,301,455
Museum 14,059 3,843
Firefighting 2,552,128 2,373,526
Medical Rescue Services 15,015 39,339
Fire Prevention 79,052 87,135
Health and Safety 21,226 8,988
Communications 17,693 13.384
Building Maintenance 148,417 118,360
Equipment Maintenance 109,105 88,670
Total Program Expenses 4,244,779 4,034,700
Change in Net Position 689,538 862,289
Net Position,Beginning 7,886,455 7,024,166
Net Position,Ending $ 8,575,993 $ 7,886,455
M4
Windsor-Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2014
Property and specific ownership taxes account for most of the District's revenue, contributing about 93.3 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 $929,868
during 2014. 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 6), the net difference between depreciation and capital outlay expenses was $309,934 for 2014.
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 and specific ownership taxes. The primary projects or program efforts for establishing
needed funding during 2014 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 $2. The actual results for the year show a $363,373 excess of expenditures over revenues in
the general fund for 2014.
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, 2014, the District's TABOR reserve amounted to$137,000.
M5
Windsor-Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2014
Capital Assets and Debt Administration
Capital Assets
By the end of 2014, the District had invested $9,324,091, 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 increase of$196,800 or 21 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 $319,888 while net additions
amounted to$516,688. due primarily to the construction of Station 2.
Table 3
Capital Assets (Net of Depreciation)
Balance Balance
1/1/14 Additions Deletions 12/31/14
Governmental activities
Capital assets not being depreciated:
Land $ 952,382 $ - $ 10,000 $ 942,382
Construction in progress 1,867,073 - 1,867,073 -
Total capital assets not being depreciate 2,819,455 - 1,877,073 942,382
Capital assets being depreciated:
Buildings 4,802,541 2,339,975 256,884 6,885,632
Vehicles 3,578,063 72,140 - 3,650,203
Equipment 675,523 84,780 - 760,303
Total capital assets being depreciated 9,056,127 2,496,895 256,884 11,296,138
Less accumulated depreciation for:
Buildings (834,841) (94,344) (153,750) (775,435)
Vehicles (1,709,017) (169,262) - (1,878,279)
Equipment (204,433) (56,282) - (260,715)
Total Accumulated Depreciation (2,748,291) (319,888) (153,750) (2,914,429)
Governmental activities capital assets,net $9,127,291 $2,177,007 $1,980,207 $ 9,324,091
Long-Term Debt
At year-end, the District had $2,735,000 in capital lease obligations and $2,940,000 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 6
to the financial statements.
M6
Windsor-Severance Fire Protection District
Management's Discussion and Analysis
For the Year Ended December 31, 2014
Table 4
Outstanding Long-Term Debt
Balance Balance Current Interest
1/1/14 Advances Repayments 12/31/14 Portion Expense
General Obligation Bonds Series 2009 $ 3.215.000 $ - $ 275.000 $ 2.940.000 $285.000 $ 119.069
Bond Premium 52,975 - 8,715 44,260 - -
Certificates of Participation Series 2012 2.850,000 - 115.000 2,735,000 120.000 86,127
Discount on COP's (24.388) - (2,083) (22,305) 2.027
Copier Capital Lease 10.247 - 3.119 7.128 3.311 696
Compensated Absences 130,614 - 29,829 100,785 - -
Total Obligations $ 6,234,448 $ - $ 429,580 $ 5,804,868 $410,338 $205,892
Deferred Charge on Lease $ (22,990) $ - $ 5,528 $ (17,462) $ - $ -
During 2014, the District decreased its capital lease obligations by $118,119, and reduced its general obligation bonds
by$275,000. 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 2015 budgets a General Property Tax revenue of $4,317,985
(based on an assessed valuation for the District, of $600.220,349 and a mill levy of 7.194
mills in Weld and Larimer Counties) with a budget of $4,734,004 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
INTENTIONALLY LEFT BLANK
I'i FINANCIAL SECTION
Holscher, Mayberry '2 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, 2014, 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, 2014, 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.
S3 10 South Vullcc lfi*hwax Suitt 300 I Voice )303)093-2199
Fnglcwood.Colorado S01 12 Fax f 720)633—0763
Independent Auditors' Report
Page 2
Report on Summarized Comparative Information
We have previously audited the Windsor-Severance Fire Protection District's 2013 financial statements. and we
expressed an unmodified audit opinion on those audited financial statements in our report dated May 22, 2014. 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.
Other Matters
Required Supplementary Information—Management's Discussion and Analysis
Accounting principles generally accepted in the United States of America require that the management, discussion
and analysis on pages M1-M7 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 22-23 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 24-25 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.
Englewood. Colorado
June 5. 2015
•
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f
Basic Financial Statements
Windsor-Severance Fire Protection District
Statement of Net Position
December 31, 2014
Governmental
Activities
ASSETS
Current Assets
Cash and Investments $ 4,765,869
Restricted Cash and Investments 353,059
Cash with Fiscal Agent 31,110
Accounts Receivable 195,023
Property Taxes Receivable 4,715,373
Prepaid Expenses 54,979
Total Current Assets 10,115,413
Noncurrent Assets
Capital Assets Not Being Depreciated 942,382
Capital Assets Being Depreciated, net 8,381,709
Total Noncurrent Assets 9,324,091
Total Assets 19,439,504
DEFERRED OUTFLOWS OF FINANCIAL RESOURCES
Charge on Refunding 17,462
LIABILITIES
Current Liabilities
Accounts Payable 266,602
Payroll Liabilities Payable 1,435
Unearned Revenue 6,640
Due to Other Funds 66,249
Accrued Interest Payable 19,806
Total Current Liabilities 360,732
Noncurrent Liabilities
Due Within One Year 410,338
Due in Excess of One Year 5,394,530
Total Noncurrent Liabilities 5,804,868
Total Liabilities 6,165,600
DEFERRED INFLOWS OF FINANCIAL RESOURCES
Deferred Property Taxes 4,715,373
NET POSITION
Net Investment in Capital Assets 3,536,685
Restricted Net Position 503,295
Unrestricted Net Position 4,536,013
Total Net Position $ 8,575,993
The accompanying notes are an intergral part of the financial statements.
3
Windsor-Severance Fire Protection District
Statement of Activities
Year Ended December 31, 2014
Program Revenues
Operating Capital Net
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Governmental Activities:
Administration $ 1,288,084 $ - $ - $ - $ (1,288.084)
Museum 14.059 - - - (14,059)
Firefighting 2.552.128 171,852 82.824 152,523 (2.144.929)
Medical Rescue Services 15,015 - - - (15,015)
Fire Prevention 79,052 - - - (79,052)
Health and Safety 21,226 - - - (21,226)
Communications 17.693 - - - (17,693)
Building Maintenance 148,417 - - - (148,417)
Equipment Maintenance 109,105 - - - (109,105)
Total Governmental Activities $ 4,244,779 $ 171.852 $ 82,824 $ 152,523 (3,837,580)
General Revenues:
Property Taxes 4,222,161
Specific Ownership Taxes 336,348
Investment Earnings 2,136
Other Revenues 9,756
Gain on Sale of Capital Assets 22,966
Transfers (66,249)
Total General Revenues and Transfers 4,527,118
Change in Net Position 689,538
Net Position, Beginning 7,886,455
Net Position, Ending $ 8,575,993
The accompanying notes are an intergral part of the financial statements.
4
Windsor-Severance Fire Protection District
Balance Sheet-Governmental Funds
December 31,2014
(With Comparative Totals for December 31,2013)
2014
Capital Debt
General Projects Service 2013
Fund Fund Fund Total Total
ASSETS
Cash and Investments $4.765.869 $ - $ - $ 4.765 869 $ 4.862.949
Restricted Cash and Investments - 5.015 348.044 353.059 418,484
Cash with Fiscal Agent 28.832 - 2.278 31.110 21.524
Accounts Receivable 195,023 - - 195.023 23.895
Property Taxes Receivable 4.317.985 - 397.388 4.715.373 4.291.392
Prepaid Expenses 54.979 - - 54,979 27 689
Total Assets $9,362,688 $ 5.015 $ 747.710 $10,115,413 $ 9.645.933
LIABILITIES,DEFERRED INFLOWS AND FUND BALANCE
LIABILITIES
Accounts Payable $ 266,602 $ - $ - $ 266.602 $ 360.299
Payroll Liabilities Payable 1.435 - - 1,435 2,839
Unearned Revenue 6,640 - - 6,640 -
Due to other funds 66,249 - - 66,249 -
Total Liabilities 340,926 - - 340.926 363,138
DEFERRED INFLOWS OF FINANCIAL RESOURCES
Deferred Property Taxes 4,317,985 - 397.388 4.715.373 4.291.392
FUND BALANCE
Nonspendable for Prepaids 54.979 - - 54.979 -
Restricted for Emergencies 137.000 - - 137.000 131,462
Restricted for Capital Projects - 5.015 - 5,015 96.994
Restricted for Debt Service - - 350.322 350 322 323,111
Restricted for IGA Maintenance 10.958 - - 10,958 -
Unassigned 4.500.840 - - 4.500.840 4,439,836
Total Fund Balance 4,703,777 5.015 350.322 5.059.114 4.991.403
Total Liabilities,Deferred Inflows and Fund Balance $9,362,688 $ 5.015 $ 747.710 $10,115.413 $ 9.645.933
Fund Balance-Governmental Funds $ 5.059.114
Amounts reported for governmental activities in the statement of net position because:
Capital assets used in governmental activities are not financial resources and.
therefore,are not reported in the funds:
Capital Assets 12,238,520
Accumulated Depreciation (2,914.429)
Long-term liabilities.including capital leases and notes payable are not due and payable
in the current period and,therefore,are not reported in the funds.
Certificates of Participation Payable (2,735,000)
Capital Leases Payable (7.128)
Bonds Payable (2,940,000)
Accrued Interest Payable (19,806)
Premium from Bonds Payable (44.260)
Discount on Certificates of Participation 22,305
Deferred Charge on Capital Lease Refunding 17,462
Accrued Compensated Absences (100,785)
Net Position-Governmental Activities $ 8.575.993
The accompanying notes are an intergral part of the financial statements.
5
Windsor-Severance Fire Protection District
Statement of Revenues,Expenditures and Change in Fund Balance-
Governmental Funds
Year Ended December 31,2014
(With Comparative Totals for the Year Ended December 31,2013)
2014
Capital Debt
General Projects Service 2013
Fund Fund Fund Total Total
REVENUES
Taxes $4.133.192 $ - $ 425,316 $ 4.558.508 $ 4,464.102
Grants and Contributions 235,347 - - 235.347 66.651
Charges for Services 171.852 - - 171.852 261,680
Interest 1.984 13 139 2.136 8.414
Other Revenues 9.757 - - 9,757 11.912
Proceeds from Sale of Assets 136,100 - - 136,100 25,000
Total Revenues 4,688.232 13 425,455 5.113,700 4,837,759
EXPENDITURES
Administration 1.104.547 3.488 1.108.035 1,077,371
Museum 14,059 - - 14.059 3,843
• Firefighting 1.937.285 - - 1.937.285 1.939,137
• Medical Rescue Services 15,015 - - 15,015 39.339
Fire Prevention 79,052 - - 79.052 87,135
Health and Safety 21,226 - - 21.226 8.988
Communications 17,693 - - 17.693 13,384
Building Maintenance 148.417 - - 148,417 118,360
Equipment Maintenance 109.105 - - 109,105 88,670
Debt Service 205.229 - 394.756 599,985 606.163
Capital Outlay 916.125 13,743 - 929.868 1,924,138
Total Expenditures 4.567.753 13.743 398,244 4,979.740 5,906,528
Revenues in Excess(Deficiency)
of Expenditures 120,479 (13,730) 27.211 133,960 (1,068.769)
Other Financing Sources(Uses)
Transfers In - - - - 78.249
Transfers Out (66.249) - - (66,249) (204.122)
Capital Lease Proceeds - - - - 12,946
Total Other Financing Sources(Uses) (66,249) - - (66,249) (112.927)
Change in Fund Balance 54,230 (13.730) 27,211 67,711 (1.181.696)
Fund Balance.Beginning 4,649,547 18,745 323,111 4.991.403 6.173,099
Fund Balance.Ending $4.703.777 $ 5.015 $ 350,322 $ 5.059.114 $ 4.991,403
Change in Fund Balance-Governmental Funds $ 67.711
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 629.822
• Depreciation Expense (319.888)
Basis of Capital Asset Disposals (113.134)
Principal payments are reported as expenses in the funds and reductions of liabilities on the
statement of net position.
Certificates of Participation Principal 115,000
Bonds Payable Principal 275.000
Capital Lease Principal 3.119
Other long-term liabilities are expensed in the funds and recorded as liabilities on the
statement of net position:
Change in Accrued Interest Payable 975
Amortization of Bond Premium 8,715
Amortization of Capital Lease Discount (2.083)
Amortization of Deferred Charge (5.528)
Change in Compensated Absences 29.829
Change in Net Position-Governmental Activities $ 689.538
The accompanying notes are an intergral part of the financial statements.
6
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Windsor-Severance Fire Protection District have been prepared in
conformity with Generally Accepted Accounting Principles (GAAP) as applied to government
units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles. The following
summary of significant accounting policies is presented to assist the reader in evaluating the
District's financial statements.
Reporting Entity
Windsor-Severance Fire Protection District is a political subdivision of the State of Colorado
governed by a five member board of directors. As required by generally accepted accounting
principles, these financial statements present the Windsor-Severance Fire Protection District
(the primary government) and its component units. Component units are legally separate
organizations for which the elected officials of the primary government are financially
accountable, or other organizations for which the nature and significance of their relationship
with the primary government are such that exclusion would cause the District's financial
statements to be misleading or incomplete. Based upon the foregoing criteria, there are no
component units included in the accompanying financial statements.
Nature of Operations
The District provides fire and rescue services for citizens in and around the communities of
Windsor and Severance, Colorado.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial level.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent
on fees and charges for support.
Government-wide financial statements report information about the reporting government as a
whole. For the most part, the effect of interfund activity has been removed from these
statements. These statements focus on the sustainability of the District as an entity and the
change in aggregate financial position resulting from the activities of the year. These
aggregated statements consist of the Statement of Net Position and the Statement of Activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business
type activity. Taxes and other items not included among program revenues are reported instead
as general revenues.
7
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basic Financial Statements (Continued)
Fund financial statements report information at the individual fund level. Each fund is considered
to be a separate accounting entity. Funds are classified as governmental or fiduciary. Major
individual governmental funds are reported as separate columns in the fund financial
statements. Non-major funds are consolidated into a single column in the financial section of
the basic financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of the related
cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of
the current period. For this purpose, the District considers revenues to be available if they are
collected within 60 days after year end. Expenditures are recorded when the related fund liability
is incurred. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, grant revenue, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the District.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred. An exception to this general rule is principal and interest on
general long-term debt which is recognized when due.
The District reports the following major governmental funds:
General Fund
This fund accounts for the financial resources of the District which are not accounted for in
any other fund. Principal sources of revenue are property taxes, intergovernmental
revenue and interest. Primary expenditures are for fire protection and general
administration.
8
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
9
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 2014
and due in 2015.
Capital Assets
Capital assets, which include land, buildings, vehicles and equipment, are reported in the
governmental activities column of the government-wide financial statements. Capital assets are
defined by the District as assets with an initial, individual cost of more than $5,000 and a useful
life of more than one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated or annexed capital assets are recorded at estimated market
value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of
Activities with accumulated depreciation reflected in the Statement of Net Position. Depreciation
on the remaining capital assets is provided on the straight-line basis over the following estimated
useful lives:
Buildings 15-50 years
Vehicles 8-25 years
Equipment 7-20 years
Deferred Outflows and Inflows of Resources
In addition to assets and liabilities, st
atement Iities the satem ent of net position will sometimes report a separate
P P
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.
10
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred Outflows and Inflows of Resources (Continued)
The unavailable property taxes are deferred and will be recognized as an outflow or inflow of
resources in the period that the amounts become recognizable as an expense or available,
respectively. Since property tax revenues are collected in arrears during the succeeding year, a
receivable and corresponding deferred inflow is recorded at December 31. As the tax is collected
in the succeeding year, the deferred inflow is recognized as revenue and the receivable is
reduced. The other item, deferred charge on refunding, is reported in the governmental activities
net position. The charge will be recognized proportionately as the outstanding principal is repaid.
Long-Term Obligation
Long-term debt is reported at face value, net of applicable discounts and deferred charge on
refunding. Costs related to the issuance of debt are expensed when incurred. Long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities
statements of net position.
Net Position/Fund Balances Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order
to calculate the amounts to report as restricted, committed, assigned, and unassigned fund
balance in the governmental fund financial statements a flow assumption must be made about
the order in which the resources are considered to be applied. It is the government's policy to
consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be
used for the same purpose, committed fund balance is depleted first, followed by assigned fund
balance. Unassigned fund balance is applied last.
Net Position/Fund Balances
In the government-wide financial statements, net position is either shown as net investment in
capital assets, with these assets essentially being nonexpendable; restricted when constraints
placed on the net position are externally imposed; or unrestricted.
For the governmental fund presentation, fund balances that are classified as "nonspendable"
include amounts that cannot be spent because they are either (a) not in spendable form or (b)
legally or contractually required to be maintained intact. The "not in spendable form" criterion
includes items that are not expected to be converted to cash, for example, inventories and
prepaid amounts.
Amounts are reported as "restricted" when constraints placed on the use of resources are either
(a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or
laws or regulations of other governments; or (b) imposed by law through constitutional provisions
or enabling legislation.
11
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
12
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 2: CASH AND INVESTMENTS
The District's cash and investment balances as of the year ended December 31, 2014 are as
follows:
Restricted Cash and Investments $ 353,059
Unrestricted Cash and Investments 4,765,869
Total Cash and Investments $ 5,118,928
DEPOSITS
Custodial Credit Risk- Deposits
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, 2014, 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, 2014 the District's deposits are categorized as follows:
Bank Carrying
Balance Balance
FDIC Insured $ 354,838 $ 354,838
PDPA Collateralized (not in District's name) 4,825,911 4,764,090
Total $5,180,749 $ 5,118,928
INVESTMENTS
The District did not hold any investments as of year-end. The following is a summary of
District policies related to investments.
13
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 24-75-601.1 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, 2014, the District
did not have any investments requiring safekeeping.
Restricted Cash and Investments
The District has restricted cash and investments for the year ended December 31, 2014 as
follows:
Restricted for Capital Projects $ 5,015
Restricted for Debt Repayment 348,044
Total Restricted Cash $ 353,059
14
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 3: CAPITAL ASSETS
Changes in governmental activities capital assets for the year ended December 31, 2014
was as follows:
Balance Balance
1/1/14 Additions Deletions 12/31/14
Governmental activities
Capital assets not being depreciated:
Land $ 952,382 $ - $ 10,000 $ 942,382
Construction in progress 1,867,073 - 1,867,073 -
Total capital assets not being depreciate 2,819,455 - 1,877,073 942,382
Capital assets beingdepreciated:
Buildings 4,802,541 2,339,975 256,884 6,885,632
Vehicles 3,578,063 72,140 - 3,650,203
Equipment 675,523 84,780 - 760,303
Total capital assets being depreciated 9,056,127 2,496,895 256,884 11,296,138
Less accumulated depreciation for:
Buildings (834,841) (94,344) (153,750) (775,435)
Vehicles (1,709,017) (169,262) - (1,878,279)
Equipment (204,433) (56,282) - (260,715)
Total Accumulated Depreciation (2,748,291) (319,888) (153,750) (2,914,429)
Governmental activities capital assets,net $9,127,291 $2,177,007 $1,980,207 $ 9,324,091
Depreciation has been allocated on the statement of activities as follows:
Firefighting $203,506
Admi ni strati on 116,382
Total Depreciation $319,888
NOTE 4: VOLUNTEER FIREMEN'S PENSION FUND - FPPA ADMINISTERED
Plan Description
The Fire and Police Pension Association (FPPA) administers an agent-multiple employer
public employee retirement system (PERS) established for the Windsor-Severance Fire
Protection District Volunteer Firefighters. The District's plan is combined with other related
volunteer and "Old Hire" plans for administration purposes by FPPA. The Public Employee
Retirement System (PERS) provides retirement benefits as well as death and disability
benefits. In 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.
15
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 4: VOLUNTEER FIREMEN'S PENSION FUND - FPPA ADMINISTERED (Continued) •
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.
Funding Policy
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 actuarial study as of January 1, 2013 indicated that the current
levels of contributions to the fund are adequate to support on an actuarially sound basis the
prospective benefits for the present Plan.
Annual Pension Costs
For the years ended December 31, 2014, 2013, and 2012, the State's actual contributions were
$59,624 each year while the District contributed $66,249 each year for the same periods. The
2014 required contribution was determined as part of the January 1, 2013 actuarial valuation
using the entry age actuarial cost method. Actuarial assumptions included the following:
1. Interest rate— 7.5% per annum, compounded annually
2. Retirement -Age 50 and 20 years of service
3. Disability- Graduated rates for all disabilities
4. Mortality— RP-2000 mortality tables
5. Separation - Graduated rates for all withdrawals
6. Marital Status - 90% married, with males 3 years older
7. Asset Valuation - Actuarial value
8. Inflation rate— 3.0%
The following is a summary of balances from the most recent actuarial valuation. A schedule
of funding progress has been included as required supplementary information immediately
following the footnotes.
Actuarial Actuarial Actuarial Net Annual
Valuation Value of Accrued Unfunded Funded Pension Required Percent
Date Assets Liability Liability Ratio Obligation Contribution Contributed
1/1/2013 $ 2,546,054 $ 3,039,526 $493,472 84% $ - $ 125,873 100%
NOTE 5: OTHER RETIREMENT COMMITMENTS
FPPA Statewide Hybrid Plan
The District is a member of the Statewide Hybrid Plan ("SWH") offered by the Fire and Police
Pension Association of Colorado. The SWH Plan was established under the authority granted
by C.R.S. 31-31-1102. The plan is a combination of a defined benefit plan and a defined
contribution plan. It is a qualified retirement plan under Section 401(a) of the Internal Revenue
Code of 1986 and is a cost-sharing multiple employer plan.
16
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 5: OTHER RETIREMENT COMMITMENTS (Continued)
FPPA Statewide Hybrid Plan (Continued)
The SWH offers a combination of a Defined Benefit Component to the District's full time
firefighters and clerical staff, and Money Purchase Component to the District's part-time
firefighters. The base contribution rate is 16% for either component which is equally split by
the District and the employee.
The members also have the ability to make voluntary contributions towards the Money
Purchase portion of the plan and to purchase additional years of service. The Plan has a five
year pro-rated vesting schedule. For the years ending December 31, 2014, 2013, and 2012,
the District and plan members both made the required contributions of $157,643, $154,730,
and $137,101, respectively.
The Money Purchase portion of the SWH plan is a defined contribution plan, whereby an
account is established in the member's name that is self-directed and final benefits are
determined by the total amount of employee and employer contributions and related earnings
and losses on those investments. The Defined Benefit portion if the SWH will provide a
defined benefit upon retirement.
The FPPA board on an annual basis determines the allocation of mandatory contributions
between the Money Purchase Component and the Defined Benefit Component of the SWH
plan. Also in the SWDB plan, the Board has the ability to adjust the retirement age up to age
60, in order to maintain the actuarial soundness of the plan.
Under the SWDB plan, normal retirement is defined as age 55 and 25 years of service, with a
retirement benefit of 2% per year of service. The benefit is calculated on the average of the
members highest three years' base salary. There are also provisions for deferred retirement,
early retirement and vested retirement at any age after completion of five years of service.
Annual financial reports for the SWH plan may be obtained from the Fire and Police Pension
Association, 5290 DTC Parkway, Suite 100, Greenwood Village, CO 80111-2721.
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).
17
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 6: LONG-TERM OBLIGATIONS
The following is a schedule of changes in debt for the year ended December 31, 2014:
Balance Balance Current Interest
1/1/14 Advances Repayments 12/31/14 Portion Expense
General Obligation Bonds Series 2009 $ 3,215,000 $ - $ 275,000 $ 2.940,000 $285,000 $119,069
Bond Premium 52.975 - 8,715 44,260 - -
Certificates of Participation Series 2012 2,850.000 - 115,000 2,735,000 120.000 86.127
Discount on COP's (24 388) - (2,083) (22,305) 2,027 Copier Capital Lease 10,247 - 3,119 7,128 3,311 696
Compensated Absences 130,614 - 29,829 100,785 - -
Total Obligations $ 6,234,448 $ - $ 429,580 $ 5,804,868 $410,338 $205,892
Deferred Charge on Lease $ (22,990) $ - $ 5,528 $ (17,462) $ - $
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
2015 $ 285,000 $ 111,506 $ 396.506
2016 285,000 102,956 387,956
2017 305,000 93,694 398,694
2018 310,000 83,019 393,019
2019 325,000 70,619 395,619
2020-2023 1,430,000 146,419 1,576,419
Total $ 2,940,000 $608,213 $ 3,548,213
18
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 6: 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.
Scheduled payments on the certificates of participation are due as follows:
Year Principal Interest Total
2015 $ 120,000 $ 84,115 $ 204,115
2016 120,000 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
2020-2024 715,000 303,975 1,018,975
2025-2029 830,000 186,260 1,016,260
2030-2032 570,000 40,250 610,250
Total $ 2,735,000 $ 925,510 $ 3,660,510
Capital Leases Payable
In 2013, the District entered into a capital lease agreement for the purchase of an office
copier. The lease requires 48 monthly payments beginning February 2013 of $304,
including interest at 6.0%. Equipment with a value of $12,946 has been capitalized under
this lease.
Future minimum capital lease payments at December 31, 2013, are as follows:
Year Payment
2015 $ 3,648
2016 3,648
2017 304
Total Payments 7,600
Interest at 6% (472)
Present Value of Payments $ 7,128
19
WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 7: 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, 2014 will provide the basis
for calculation of future limitations adjusted for allowable increases tied to inflation and local
growth. Subsequent to December 31, 2014, 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
D st ict 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 2014 in the amount of 3% or
more of its fiscal year spending. At December 31, 2014, the District has reserved the
following emergencies:
encies:
g
General Fund $137,000
The District believes it is in compliance with the provisions of the TABOR Amendment.
NOTE 8: 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 9: INTERFUND TRANSACTIONS
The District has recorded the following routine transfers:
Transfers In Transfers Out
General Fund $ - $ 66,249
Pension Fund 66,249 -
Totals $ 66,249 $ 66,249
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WINDSOR-SEVERANCE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
NOTE 10: BUDGET VIOLATION
The District's expenditures exceeded budgeted amounts in the General and Debt Service
Funds in the amounts of $363,373 and $3,488, respectively, which may be a violation of state
statutes.
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Required Supplementary Information
Windsor-Severance Fire Protection District
Schedule of Funding Progress -
Volunteer Firefighters' Pension Fund
December 31, 2014
Analysis of Funding Progress
Actuarial Actuarial Actuarial Net Annual
Valuation Value of Accrued Unfunded Funded Pension Required Percent
Date Assets Liability Liability Ratio Obligation Contribution Contributed
1/1/2007 $ 2,421,515 $ 2,523,504 $ 101,989 96% $ - $ 125,873 100%
1/1/2009 2,266,033 2,741,130 475,097 83% - 125,873 100%
1/1/2011 2,400,738 2.726.763 326,025 88% - 125,873 100%
1/1/2013 2,546,054 3,039.526 493,472 84% - 125,873 100%
See the accompanying Independent Auditors' Report.
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Windsor-Severance Fire Protection District
Budgetary Comparison Schedule
General Fund
Year Ended December 31, 2014
(With Comparative Totals for the Year Ended December 31, 2013)
2014
Original & Variance
Final w/Final 2013
Budget Actual Budget Actual
REVENUES
Taxes $ 4,124,381 $ 4,133,192 $ 8,811 $ 4,033,528
Grants and Contributions - 235,347 235,347 66,651
Charges for Services 146,250 171,852 25,602 261,680
Interest - 1,984 1,984 5,398
Other Revenues - 9,757 9,757 6,912
Proceeds from Sale of Assets - 136,100 136,100 25,000
Total Revenues 4,270,631 4,688,232 417,601 4,399,169
EXPENDITURES
Current
Administration 999,279 1,104,547 (105,268) 1,072,381
Museum - 14,059 (14,059) 3,843
Firefighting 2,385,462 1,937,285 448,177 1,939,137
Medical Rescue Services 5,500 15,015 (9,515) 39,339
Fire Prevention 5,000 79,052 (74,052) 87,135
Health and Safety 17,500 21,226 (3,726) 8,988
Communications - 17,693 (17,693) 13,384
Building Maintenance 141,100 148,417 (7,317) 118,360
Equipment Maintenance 101,500 109,105 (7,605) 88,670
Debt Service
Principal 201,415 118,119 83,296 107,699
Interest - 87,110 (87,110) 97,520
Capital Outlay 347,624 916,125 (568,501) 491,042
Total Expenditures 4,204,380 4,567,753 (363,373) 4,067,498
Excess (Deficiency) Of Revenues Over
(Under) Expenditures 66,251 120,479 54,228 331,671
Other Financing Sources (Uses)
Transfers In - - - 78,249
Transfers Out (66,249) (66,249) - (125,873)
Total Other Financing Sources (Uses) (66,249) (66,249) - (47,624)
Change in Fund Balance- Budget Basis 2 54,230 54,228 284,047
Fund Balance, Beginning 4,270,631 4,649,547 378,916 4,365,500
Fund Balance, Ending $ 4,270,633 $ 4,703,777 $ 433,144 $ 4,649,547
See the accompanying Independent Auditors' Report.
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INTENTIONALLY LEFT BLANK
i
Other Supplementary Information
Windsor-Severance Fire Protection District
Budgetary Comparison Schedule
Capital Projects Fund
Year Ended December 31, 2014
(With Comparative Totals for the Year Ended December 31, 2013)
2014
Variance
Final w/Final 2013
Budget Actual Budget Actual
REVENUES
Interest $ 1,300 $ 13 $ (1,287) $ 2,888
Other Revenues - - - 5,000
Total Revenue 1,300 13 (1,287) 7,888
EXPENDITURES •
Current
Administration - - - (15)
Capital Outlay 18,743 13,743 5,000 1,420,150
Total Expenditures 18,743 13,743 5,000 1,420,135
Excess (Deficiency) Of Revenues Over
(Under) Expenditures (17,443) (13,730) 3,713 (1,412,247)
Other Financing Sources (Uses)
Transfers Out - - - (78,249)
Change in Fund Balance (17,443) (13,730) 3,713 (1,490,496)
Fund Balance, Beginning 18,745 18,745 - 1,509,241
Fund Balance, Ending $ 1,302 $ 5,015 $ 3,713 $ 18,745
See the accompanying Independent Auditors' Report.
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Windsor-Severance Fire Protection District
Budgetary Comparison Schedule
Debt Service Fund
Year Ended December 31, 2014
(With Comparative Totals for the Year Ended December 31, 2013)
2014
Variance
Final w/ Final 2013
Budget Actual Budget Actual
REVENUES
Taxes $ 420,519 $ 425,316 $ 4,797 $ 430,574
Interest - 139 139 128
Total Revenues 420,519 425,455 4,936 430,702
EXPENDITURES
Current
Administration - 3,488 (3,488) 5.005
Debt Service
Principal 394,756 275,000 119,756 275.000
Interest - 119,756 (119,756) 125,944
Total Expeditures 394,756 398,244 (3,488) 405,949
Change in Fund Balance 25,763 27,211 1,448 24,753
Fund Balance, Beginning 323,111 323,111 - 298,358
Fund Balance, Ending $ 348,874 $ 350,322 $ 1,448 $ 323,111
See the accompanying Independent Auditors' Report.
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