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Home My WebLink About1979 CITY OF WHEAT RIDGE, COLORADO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1979 WITH REPORT OF CERTIFIED PUBLIC ACCOUNTANTS i") F;OX6Jd fEL.Ef)HlJNE IlU e"31 .,cl4,j The City of ,',III) WE'oT ?CJfH AVENlJE . '/VHl-AT F11[}(;E ( ClLuh/lDO tJW(U ~heat GRidge Arthur Youllg PI Company 1G70 Broadway, Suite 2500 Denver, CO 80202 CAROL HAMPF CITY CLERK COUNCILMEMBERS, PAT D AIELLO LAWRENCE G. MERKL KENT 0, DAVIS KEN E, LEWIS MARY JO CAVARRA LOUISE F TURNER WILLIAM D, BOWMAN KAY N. ORE FRANK STITES MAYOR ~Iarch 14, 1080 JAMES O. MALONE CITY TREASURER Gentlemen: In connection with your examination of the consolidated financial statements of the City of Wheat Ridge at December 31, 1979 and for the year then ended, we recognize that obtaining representations from us concerning the information contained in this letter is a significant procedure in enabling you to form an opinion on the financial statements, and accordingly, we make the following representations which are true to the best of our knowledge and belief. G EllEHAL : We recognize that, as members of management of the City, we are responsible for the fair presentation in the financial statements of financial position, statements of revenues, expenditures, encumbrances, and transfers compared with budgets and statements of changes in fund balances in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. We have made available to your representatives all financial records and related data. Additionally, all minutes of City Council from January 1, 1979 through March 14, 1980 were provided your representatives. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. ARRANGEMENTS WITH FINANCIAL INSTITUTIONS: There are no arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances and line-of-credit or similar arranf,ements. ""The Carnal ion Cily" Arthur Young & Company Page Two INVESTMENTS: None of the City's investments have permanently declined in value to an amount less than the carrying value in the balance sheet. OWNERSHIP AND PLEDGING OF ASSETS: The City has satisfactory title to all assets appearing in the balance sheet. All assets to which the Company has satisfactory title appear in the balance sheet. CONTINGENT LIABILITIES: There are no contingent liabilities included in the balance sheet. As used in this letter, the term "contingent liabilities" includes, but is not limited to: discounted or assigned receivables; accommodation endorsements; guarantees; warranties; sureties; open balances on letters of credit; unsatisfied judgments; additional taxes of which there is present knowledge based upon either formal or informal advice. There are no unasserted claims and assessments which are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No.5. There have been no violations or possible violations of laws or regulations in any jurisdiction whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. There have been no communications from regulatory agencies or government representatives concerning investigations or allegations of non-compliance with laws or regulations in any jurisdiction, or deficiencies in financial reporting practices, except for those concerning the following: (1) Matters of a routine, normal, recurring nature, examinations by taxing authorities, none of which make any allegations of non-compliance of laws or regulations which should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. There are no other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No.5, nor are there any accruals for loss contingencies included in the balance sheet which are not in conformity with the provisions of Statement of Financial Accounting Standards No.5. Arthur Young & Company Page Three IRREGULARITIES AND CONFLICTS OF INTEREST: 'l'here have been no irregularities involving management or e~ployees who llave significant roles in the system of internal accounting controls. 'I'here have been no irregularities involving other employees that could have a material effect un the financial statements. There are no instances where any official or employee of the City has been in a conflict of interest. Such an interest would be contrary to City policy. SUBSEQUENT EVENTS: No events or trausactions have occurred since December 3l, 1979 or are pending or in prospect which would have a material effect upon the financial statements at that date or for the period then ended, or which are of such significance in relation to the City's affairs as to require mention in a note to the financial statements in order to Make them not misleading as to the financial position and resul ts of operations of the City. In additioll, we know of no event since December 31, 1979 which, although not affecting SUCll financial statements, has caused any material change, adverse or otherwise, in the financial positioll or statements of revenues, expenditures, encumbrances, and transfers compared with budgets, and statements of changes in fund balances of the City. Very truly yours, J~..J~./ Frank Stites, Mayor L.~ // It .c~~,- I s Malone, Treasurer TABLE OF CONTENTS Report of certified public accountants Combined financial statements Combined balance sheet Combined statement of revenues, expenditures, encumbrances and transfers Combined statement of changes in fund balances General Fund Financial statements: Balance sheet Statement of revenues, expenditures, encumbrances and transfers compared with budget Statement of changes in fund balance Trust and Agency Funds Financial statements: Combining balance sheet Combining statement of revenues, expenditures, and encumbrances compared with budget Combining statement of changes in fund balances Statement of changes in cash balance Special Revenue Funds Financial statements. Combining balance sheet Combining statement of revenues, expenditures, encumbrances and transfers compared with budget Combining statement of changes in fund balances General Fixed Assets Financial statements. Statement of general fixed assets Scatement of changes in general fixed assets by function and activity Notes to financial statements ARTHUR YOUNG 8< COMPANY 1670 BROADWAY SUITE 2500 DENVER, COLORADO 80202 The Honorable Frank Stites, Mayor Members of City Council City of Wheat Ridge, Colorado We have examined the accompanying financial statements of the various funds and account groups of the City of Wheat Ridge, Colorado for the year ended December 31, 1979, listed in the preceding table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and sLlch other auditing procedures as we considered necessary in the circumstances. In our opinion, the statements mentioned above present fairly the financial position of the various funds and account groups of the City of Wheat Ridge, Colorado at December 31, 1979, and the results of operations of such funds for the year then ended, in conformity with generally accepted accounting principles applied on a a basis consistent with that of the preceding year, after giving retroactive effect to the change in the method of accounting for certain revenue as described in Note 7 to the financial statements. ~h<t-~ :,1arch 14, 1980 COMBINED FINANCIAL STATEMENTS CITY OF WHEAT RIDGE, COLORADO COMBINED BALANCE SHEET December 31, 1979 Trust and Special General Totals General Agency Revenue Fixed (1lemorandum Fund Funds Funds Assets only) ASSETS Cash (Note 2) $ 757,421 $ 69,825 $ 26,892 $ - $ 854,138 Certificates of deposit 518,782 859,644 2 , 343 ,882 3,722,308 Investments - U.S. government securi ties 26,187 26, 187 Accounts receivable - U.S. government 58,546 58,546 Due from other funds 475,283 475,283 Other assets 11 , 337 1,553 12,890 Fixed assets 13,565,061 13,565,061 $1.762.823 $957.209 $2.429.320 $13.565.061 $18.714.413 LIABILITIES, ENCUMBRANCES AND FUND BALANCES Accounts payable $ 116 ,439 $ 65,136 $ 260,527 $ $ 442,102 Due to other funds 475,283 475,283 Encumbrances outstanding 45,779 2,500 813,615 861 ,894 Commitments and contingencies (Notes 5 and 6) Contributions to the City 8,458,385 8,458,385 Investment in general fixed assets 5,106,676 5,100,676 Fund balances 1,600,605 889,573 879,895 3,370,073 $1.762.823 $957.209 $2.429.320 $13.565.061 $18.714.413 See accompanying notes. CITY OF WHEAT RIDGE, COLORADO COMBINED STATEMENT OF REVENUES, EXPENDITURES, ENCUMBRANCES AND TRANSFERS Year ended December 31, 1979 Trust and Special Totals General Agency Il.evenue (Memorandum Fund Funds Funds only) Revenues: Taxes $2,934,279 $ - $1,563,396 $4,497,675 Licenses and permits 110,542 110,542 Intergovernmental revenue 807,380 38,002 218,398 1,063,780 Charges for services 55,768 1,500 57,268 Fines and forfeitures 59,050 59,050 Interest incane 114,296 72,978 218,178 405,452 Rentals and leases 7,940 7,940 Miscellaneous incane 44,097 213 63,769 108,079 Pension plan contributions 137 ,176 137 , 176 Total revenues 4,133,352 248,369 2,065,241 6,446,962 Transfers fran other funds 185,170 183,661 368,831 Total revenues and transfers 4,318,522 248,369 2,248,002 6,815,793 Expenditures and encumbrances: General government 769,774 769,774 Public safety 1,403,831 1,403,831 Public oorks 806 ,805 806,805 Parks and recreation 552,629 552,629 Capital acquisitions 2,413,828 2,413,828 Pension withdrawals 25,638 25,638 Other expenditures 190,383 4,728 (54,643) 140,468 Total expenditures and encumbrances 3,723,422 30,366 2,359,185 6,112,973 Transfers to other funds 183 , 661 185,170 368,831 Total expenditures, encumbrances and transfers 3,907,083 30,366 2,544,355 6,481,804 Il.evenues and transfers over (under) expenditures, encumbrances, and transfers $ 411 .439 $218.003 $ (295 .453) ~ 333.989 See accompanying notes. CITY OF WHEAT RIDGE, COLORADO COMBINED STATEMENT OF CHANGES IN FUND BALANCES Year ended December 31, 1979 Trust and Special Totals General Agency Revenue (Memorandum Fund Funds Funds only) Fund balances at January 1, 1979, as previously reported $1,098,412 $671,570 $1,084,594 $2,854,576 Prior year adjustr.'€nt (Note 7) 90,754 90,754 181,508 Fund balances at January 1, 1979, as adjusted 1,189,166 671,570 1,175,348 3,036,084 Revenues and transfers over (under) expenditures, enc~brances and transfers 411 ,439 218,003 (295,453) 333,989 Fund balances at December 31, 1979 $1.600.605 $889.573 $ 879.895 $3.370.073 See accompanying notes. FINANCIAL STATEMENTS GENERAL FUND CITY OF WHEAT RIDGE, COLORADO GENERAL FUND BALANCE SHEET December 31, 1979 ASSETS Cash: Operating accounts Savings accounts (Note 2) Certificates of deposit Due from other funds Other assets LIABILITIES, ENCUMBRANCES AND FUND BALANCE Liabili ties: Accounts payable: Trade accounts Payroll taxes withheld Other Total liabilities Encumbrances outstanding Commitments and contingencies (Notes 5 and 6) Fund balance See accompanying notes. $ 31,308 726,113 518,782 475,283 11,337 $1.762.823 $ 61,774 51,718 2,947 116,439 45,779 1,600,605 $1.762.823 CITY OF WHEAT RIDGE, COLORADO GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, ENCUMBRANCES AND TRANSFERS COMPARED WITH BUDGET Year ended December 31, 1979 TIevenues: Taxes Licenses and permits Intergovernmental revenue Charges for services Fines and forfeitures Interest income Rentals and leases Miscellaneous revenue Total revenues Transfers from Sales Tax Improvement Fund Total revenues and transfers Expenditures and encumbrances: General government Public safety Public works Parks and recreation Nondepartmental expenditures Total expenditures and encumbrances Transfers to Sales Tax Improvement Fund Total expenditures, encumbrances and transfers Revenues and transfers over (under) expenditures, encumbrances and transfers Actual $2,934,279 110,542 807,380 55,768 59,050 114,296 7,940 44,097 4,133,352 185,170 4,318,522 769,774 1,403,831 806,805 552,629 190,383 3,723,422 183,661 3,907,083 Budget (Note 4) $2,466,528 105,823 818,775 71,480 56,700 30,000 6,360 21,500 3,577,166 185,170 3,762,336 854,368 1,457,963 907,769 642,195 304,633 4,166,928 183,661 4,350,589 Actual over (under) budget $ 467,751 4,719 (11,395) (15,712) 2,350 84,296 1,580 22,597 556,186 556,186 (84,594) (54,132) (100,964) (89,566) (114,250) (443 ,506) (443,506) $ 411.439 $ (588.253) $ 999.692 See accompanying notes. CITY OF YlliEAT RIDGE, COLORADO GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE Year ended December 31, 1979 Fund balance at January 1, 1979, as previously reported Prior year adjustment (Note 7) Fund balance at January 1, 1979, as adjusted Revenues and transfers over expenditures, encumbrances and transfers Fund balance at December 31, 1979 See accompanying notes. $1,098,412 90,754 1,189,166 411,439 $1.600,605 FINANCIAL STATEMENTS TRUST AND AGENCY FUNDS CITY OF WHEAT RIDGE, COLORADO TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1979 Policem2n's Pension Total Fund Public Works Escrow Fund Conser- vation Trust Fund ASSETS Cash: Operating accounts $ 65,343 $ 207 $65,136 $ Savings accounts 4,482 129 4,353 Certificates of deposit 859,644 859,644 InvestI1"ents: U.S. Government securities 26,187 26,187 Accrued interest receivable 1,553 1,553 $957.209 $887 . 720 $65.136 $4,353 LIABILITIES, ENCUMBRANCES AND FUND BALANCES Liabili ties: Refundable escrow deposits $ 65,136 $ $65,136 $ Fund balances 2,500 889,573 $957.209 2,500 Encumbrances outstanding $65.136 1,853 $4.353 887,720 $887.720 See accompanying notes. CITY OF WHEAT RIDGE, COLORADO TRUST AND AGENCY FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ENCUMBRANCES COMPARED WITH BUDGET Year ended December 31, 1979 Policemen's Conservation Trust Fund Pension Actual Fund over (Note 4) (under) Total A.ctual Actual Budget budget (Note 4) Revenues: Contributions (Note 3): City $ 68,588 $ 68,588 $ - $ $ Fbployees 68,588 68,588 state of Colorado 38,002 38,002 175,178 175,178 State of Colorado grants 9,000 (9,000) Interest 72,978 72,759 219 500 (281) Miscellaneous incane 213 213 Total revenues 248,369 248,150 219 9,500 (9,281) Expenditures and encumbrances: Park acquisition and development 9,500 (9,500) Wi thdrawals by participants 25,638 25,638 Insurance 4,728 4,728 Total expenditures and encumbrances 30,366 30,366 9,500 (9,500) Revenues over expenditures and encumbrances $218.003 $217.784 $219 $ $ 219 See accompanying notes. CITY OF WHEAT RIDGE, COLORADO TRUST AND AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN FUND BALANCES Year ended December 31, 1979 Revenues over expenditures and encumbrances Conser- Policemen's vation Pension Trus t Total Fund Fund $671,570 $669,936 $1,634 218,003 217,784 219 $889,573 $887.720 $1.853 Fund balances at January 1, 1979 Fund balances at December 31, 1079 See accompanying notes. CITY OF WHEAT RIDGE, COLORADO TRUST AND AGENCY FUNDS STATEMENT OF CHANGES IN CASH BALANCE Ye~r ended December 31, 1979 Receipts: Refundable escrow deposits Disbursements: Refund of deposits Receipts over (under) disbursements Cash balance at January 1, 1979 Cash balance at December 31, 1979 See accompanying notes. Public Works Escrow Fund $16,440 38,832 (22,392) 87,528 $65.136 FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS ASSETS Cash: Operating account Savings account Certificates of deposit Due from U.S. government CITY OF WHf,AT RIDGE, COLORADO SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1979 Total Federal Revenue Sharing Fund $ 2,512 $ 115 24,380 24,380 2,343,882 100,000 58,546 58,546 $2.429.320 $183.041 LIABILITIES, EnCUMBRANCES AND FUND BAlANCES Liabili ties: Accounts payable Due to General Fund Encumbrances outstanding Fund ba.lances $ 260 ,547 $ 475,283 229 813,595 1,466 879,895 181,346 $2 .429 .320 $183.041 See accompanying notes. Park Sales Tax Acquisition Improvement Fund Fund $2,397 $ 2,243,882 $2.397 $2.243.882 $ $ 260,547 475,054 812,129 2,397 696,152 $2.397 $2.243.882 '" I I Ol ~ '" '" o~ '" ~ ; e< "~ Ol '" '" '" "'''' " ~ '" ID ID 00 '" ". 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FINANCIAL STATEMENTS GENERAL FIXED ASSETS CITY OF WHEAT RIDGE, COLORADO STATEMENT OF GENERAL FIXED ASSETS December 31, 1979 General fixed assets (Note 1): Land Equipment ilighways, streets and storm sewers Construction in progress Investment in gen8ral fixed assets: Assets contributed to the City Cost and estimated cost of assets acquired by various funds of the City See accompanying notes. $ 3,430,340 1,196,070 8,132,355 806,296 $13.565.061 $ 8,458,385 5,106,676 $13.565.061 CITY OF WHEAT RIDGE, COLORADO STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY FU;jCTION AND ACTIVITY Year ended December 31, 1970 Balance at Addi tions Balance at January General Contri- Deduc- December 1, 1079 Revenues butions tions 31, 1979 General fixed assets: General goverl1'11ent $ 1,244,633 $ 142,766 $ $ 717 $ 1,386,682 Public safety 303,683 104,806 62,256 346,233 Public works 8,621,426 25,484 6,595 8,640,315 Parks 2,336,382 855,449 3,191,831 $12,506.124 $1.128,505 $ $69,568 $13,565,061 See accompanying notes. CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 1979 1. Basis of presentation, purposes of funds and group of accounts and significant accounting policies Basis of presentation: The accounting policies of the City of Wheat Ridge, Colorado as reflected in the accompanying financial statements for the year ended December 31, 1979 conform to generally accepted accounting principles for local government units as prescribed by (1) the Governmental Accounting, Auditing and Financial Reporting (GAAFR) manual published in 10G8 by the National Committee on Governmental Accounting (NCGA) and (2) the Industry Audit Guide released by the American Institute of Certified Public Accountants (AICPA) effective for years beginning on or after January 1, 1974 and amendments thereto. Purposes of fund and account groups: The City utilizes the following funds and account groups: a. The General Fund is used to account for all r~venues and expenditures applicable to the general operations of city government which are not properly accounted for in another fund. All general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund. b. Trust and Agency Funds are used to account for assets held by the City as trustee or agent. Expendable trust funds are funds that can be used to supplement general governmental operations but with various restrictions placed on the use of funds by the grantor. Agency Funds are those in which assets are being held by the City in a fiduciary capacity. Funds included are as follows: CITY OF ,mEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 1979 1. Basis of presentation, purposes of funds and group of accounts and significant accounting policies (continued) Purposes of fund and account groups (continued)' Policemen's Pension Fund The Policemen's Pension Fund was established to account for funds received from participants, the City's General Fund and the State of Colorado and held in trust for disbursement to qualified participants. Public Works Escrow Fund The Public Works Escrow Fund was established to account for funds received as financial guarantees prior to the issuance of certain authorized construction permits. Upon completion of all required work under the permits, the funds are refunded. Conservation Trust Fund The Conservation Trust Fund was established to account for funds received and restricted for use in the acquisition, development and maintenance of new conservation sites pursuant to Chapter 138-1-98 of the Revised Statutes of the State of Colorado. c. Special Revenue Funds are operating funds for which the use of revenues is restricted or designated by outside sources and include the following: Federal Revenue Sharing Fund The Federal Revenue Sharing Fund was established to account of those funds received through the "State and Local fiscal Assistance Act of 1972 as amended." In essence, this act provides funds to units of local governments to be used for ordinary and necessary maintenance and operating expenses and capital expenditures authorized by law. The Act also specifies certain restrictions and procedural requirements with which the City has complied during the year. CITY OF IffiEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 1979 1. Basis of presentation, purposes of funds and group of accounts and significant accounting policies (continued) Purposes of fund and account groups (continued): Park Acquisition Fund The Park Acquisition Fund was established to account for funds received and designated for use in the acquisition of additional parklandG and improvements. Sales Tax Improvement Fund The Sales Tax Improvement Fund (formerly Capital Improvement Fund) was established to account for funds received as a result of a one percent increase in the City's sales tax. The expenditures of this Fund are to be used for capital expenditures as approved by City Council. d. The General Fixed Assets Account Group is used to account for fixed assets acquired for general City purposes. e. The "Total" and "Totals 1,ler.1orandum Only" columns contain the totals of the various funds of the City and the similar accounts of the above funds and account groups. Since the use of the assets of certain of the funds is restricted as described above, such totaling is for convenience only and does not indicate that the combined assets are available in any manner other than that provided for by the related restrictions. Significant accounting policies' General The accounts of the General and Special Revenue Funds are maintained on the modified accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for certain revenues which are accrued when they are both mcasurable and available or have not been receivcd at CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 1079 1. Basis of presentation, purposes of funds and group of accounts and significant accounting policies (continued) Significant accounting policies (continued): the normal time of receipt and certain grant revenues which are accrued when funds are expended or encumberod. Encu~brances are recorded as expenditures at the ti~e the commitments are made. The Trust and Agency Funds (with minor exceptions) are maintained on the accrual basis. General fixed assets Fixed assets acquired or constructed for general governMent services are recorded as expenditures in the funds making the expenditure and capitalized at cost, except for land improvements, (e.g., highways, streets, sewers) in the General Fixed Asset Account Group. Land improvements transferred to the City from Jefferson County in 1969 have been recorded at the County's historical cost. Additions to land improvements from 1969 through 1976 have been recorded at cost. In 1977 the City elected to discontinue recording land improvements in the General Fixed Asset Account Group. Depreciation has not been provided on assets in the General Fixed Asset Account Group. Accrued vacation and sick leave City eMployees earn vacation leave which may be either taken or accumulated, up to a maxiMum amount, until paid upon termination or retirement. Unused sick leave .. ... ~ - - "" .. ... or .. .. .. ... .. .. .. .. .. CI TY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 1979 1. Basis of presentation, purposes of funds and group of accounts and significant accounting policies (continued) Significant accounting policies (continued): Accrued vacation and sick leave may be accumulated up to established limits but is paid only upon retirement. Such amounts have not been accrued at December 31, 1979 (Note 5). Investments Investments are carried at cost, which approximates market at December 31, 1979. 2. Cash restriction The General Fund cash of $90,000 has been restricted by City Council for emergency situations effecting the lives and property of the City's citizens. Expenditures must be approved in advance by the City Council, or in situations where members of City Council cannot be contacted, the Mayor and the City Administrator can approve expenditures, provided subsequent report is made at the next City Council meeting. 3. Pension plan The Police Pension Plan of the City of Wheat Ridge, established in accordance with Colorado State law, is a defined benefit plan which provides for retirement and disability benefits and covers substantially all uniformed employees. Participants are required to contribute ten - percent of their compensation from the City. Effective January 1, 1979, the City contributes an amount equal to the