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Home My WebLink About1988 ! \ ' ~~p t"~ t1 1;." . , 1 ; J City of Wheat :Riose ColoraJo 1988 Comprehensive Jlnnual [financial :Report ('~(l--'(I___('___(l"""( '___(l'-'(I'-"{l'-"(I~()~(l~()'-"{)'-'( l~(l~l)'-'(J--'I' (fiscal Year 'EnJins 'Decem6er 31 CITY OF WHEAT RIDGE WHEAT RIDGE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1988 AND AUDITORS' REPORTS PREPARED BY James Malone City Treasurer Bernadette J. Kimmey Budget/Finance Officer - Sybil Noss Chief Accountant - Gruenler & Associates, P.C. Certified Public Accountants - - CITY OF WHEAT RIDGE WHEAT RIDGE, COLORADO TABLE OF CONTENTS December 31, 1988 INTRODUCTORY SECTION Officials - City of Wheat Ridge Organization chart Letter of transmittal - City Administrator Letter of transmittal - City Treasurer FINANCIAL SECTION Report of Independent Auditor General Purpose Financial Statements Combined balance sheet - all fund types and account groups Combined statement of revenues, expenditures and changes in fund balances - all governmental fund types and expendable trust fund (GAAP basis) Combined statement of revenues, expenditures and changes in fund balances - budget and actual (Non-GAAP basis) all governmental fund types Statement of revenues, expenses and changes in fund balances - police pension fund - trust fund Statement of changes in financial position - police pension fund - trust fund Notes to financial statements Page 1 2 3-5 6-10 11-12 13 14-15 16-17 - I 18-21 22 23 24-40 CITY OF WHEAT RIDGE WHEAT RIDGE, COLORADO TABLE OF CONTENTS (continued) December 31, 1988 FINANCIAL SECTION - (continued) Supplemental information - combining, individual and account group financial statements and schedules General fund Comparative balance sheet Statement of revenues, expenditures and changes in fund balance .. .. Statement of revenues, expenditures and changes in fund balance - budget and actual (Non-GAAP basis) Special revenue funds .. Combining balance sheet .. Combining statement of revenues, expenditures, and changes in fund balances .. Combining statement of revenues, expenditures, and changes in fund balances - budget and actual (Non-GAAP basis) Debt service funds .. Balance sheet Statement of revenues, expenditures and changes in fund balance Statement of revenues, expenditures and changes in fund balance - budget and actual (GAAP basis) Capital project fund Balance sheet Statement of revenues, expenditures and changes in fund balance Statement of revenues, expenditures and changes in fund balance - budget and actual (Non-GAAP basis) Page 41 42 43 44 45 46 47-48 49-50 51-54 56 57 58 59-60 61 62 63 64 CITY OF WHEAT RIDGE WHEAT RIDGE, COLORADO TABLE OF CONTENTS (continued) December 31, 1988 FINANCIAL SECTION - (continued) Supplemental information - combining, individual and account group financial statements and schedules - (continued) Paqe Fiduciary funds Combining balance sheet 65 66 Agency funds statement of changes in assets and liabilities 67 General fixed assets account group 68 Schedule of changes in general fixed assets - by source 69 ... Schedule of changes in general fixed assets by function and activity 70 Schedule of general fixed assets by function and activity 71 STATISTICAL SECTION ... General fund expenditures by function 72 .. General fund revenues and interfund transfers by source 73 Property tax levies and collections - general fund ... 74 Assessed and estimated actual value of taxable property 75 Property tax rates - all overlapping governments Special assessment billings and collections 76 77 Ratio of net bonded debt to assessed value and net bonded debt per capita 78 Computation of legal debt margin 79 CITY OF WHEAT RIDGE WHEAT RIDGE, COLORADO TABLE OF CONTENTS (continued) December 31, 1988 STATISTICAL SECTION - (continued) Page Computation of direct and overlapping debt 80 Ratio of annual debt service for general bonded debt to total general fund expenditures 81 Revenue bond coverage - sales tax revenue bonds 82 Demographic statistics 83 Construction, property value and bank deposits 84 .. Principal taxpayers 85 Miscellaneous statistics 86 ... Insurance coverage 87 ".. SINGLE AUDIT SECTION Independent auditors' report on schedule of federal financial assistance 89 .. Schedule of federal financial assistance 90-91 .. Report on compliance with laws and regulations based on an audit of the general purpose financial statements performed in accordance with the standards for audit issued by the GAO 92 .. Report on compliance with laws and regulations related to nonmajor federal financial assistance programs in circumstances in which the recipient received no major program funding 93-94 .. Report on internal accounting controls based solely on a study and evaluation made as a part of an audit of the general purpose financial statements 95-96 Report on internal controls (accounting and administrative) based on a study and evaluation made as a part of an audit of the general purpose financial statements and the additional tests required by the single audit act. 97-99 - - .. \ - .... - OFFICIALS CITY OF WHEAT RIDGE MAYOR Dan Wilde CITY COUNCIL Larry Merkl District I Doris Ibbison Kent Davis District II Tony Flasco Nancy Snow District III Randy West .. Claudia Worth District IV Moe Keller .. CITY CLERK CITY TREASURER .. Wanda Sang James O. Malone .. CITY ATTORNEY MUNICIPAL JUDGE .. John E. Hayes Randall J. Davis .. CITY ADMINISTRATOR ... Michael J. Smith DIRECTOR OF PLANNING AND DEVELOPMENT Glen Gidley DIRECTOR OF PARKS & RECREATION Richard H. Bredt CHIEF OF POLICE Jack A. Hurst DIRECTOR OF PUBLIC WORKS Robert Goebel BUDGET/FINANCE OFFICER Bernadette J. Kimmey 1 I CITIZENS OF WHEAT RIDGE - I I - - CITY --- MAYOR CITY - COUNCIL CLERK - I I L_____ MUNICIP AL CITY - JUDGE CITY - TREASURER ADMINISTRA TOR - CITY Municipal Court J .Lpersonnel ATTORNEY - I I I ... PLANNING & - FINANCE - PARKS & - POLICE PUBLIC WORK: * DEVELOPMENT RECREA TION f-Bu~ding Inspection -Accounting -Parks Maintenance & -Animal/Parks -Engineering f- Building Maintenance -Audit Forestry Enforcement -Shops - -Civil Disaster -Budget -Recreation Communications -Street Malntenancp - Code Enforcement -Data Processing Investigation - Traffic Maintenanc_ - Planning & Zoning -Purchasing Patrol & Traffic -Switchboard Records - * -' Also provides staff services to Economic Develooment & Revitlllizfllion Commi~~ion (Ff)ARC) Support Services 2 POBOX 8:38 ill E::PH( INE ;il' hLJ.;..l The Otv of 7500 livEST 2qTH AVENUE. VvHEAT RIDl,~ 'JnL( 'F-:A[)I'.o, 'I,e.) ~heat GRidge April 3, 1989 The Honorable Mayor Wilde, and Members of the City Council City of Wheat Ridge Wheat Ridge, Colorado Dear Mayor and Members of City Council: In accordance with state statutes and local charter provisions, I hereby transmit the annual financial report of the City of Wheat Ridge as of December 31, 1988, and for the fiscal year then ended. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. Management believes that the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. - Internal accounting controls are discussed by the City Treasurer in his accompanying letter of transmittal, and within that framework, I believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. This report has been prepared in accordance with the guidelines recommended by the Government Finance Officers Association of the United States and Canada. In accordance with these guidelines, the accompanying report consists of four parts: - - - (1) Introductory Section, including the City Treasurer's letter of transmittal; (2) Financial Section, including the financial statements, supplemental data on government, and our independent auditor's opinion; (3) Statistical Section, including a number of tables of unaudited data depicting the financial history of the government for the past ten years, information on overlapping governments, and demographic and other miscellaneous information; and (4) Single Audit Section, in compliance with the Single Audit Act of 1984. THE REPORTING ENTITY AND ITS SERVICES This report includes all of the funds and account groups of the Ci ty in conformance with Governmental Accounting and Financial Reporting Standards. The R-1 School District provides all educational services to the students within the jurisdiction of the City of Wheat Ridge. The R-1 School District is the reporting entity and is not a part of "The Camatwn ('/ tv" -) the City of Wheat Ridge. Additionally, numerous special districts provide water, sanitation, and fire protection services, all of which are their own reporting entities. The City provides municipal services which include public safety (police only), public works (streets, traffic, public improvements) , parks and recreation, planning and zoning, and general administrative services. ECONOMIC CONDITION AND OUTLOOK Wheat Ridge is primarily a residential suburban community bound on three sides by the cities of Denver, Lakewood, and Arvada. Unincorporated Jefferson County lies to the west. As there is little room for outward growth, redevelopment of existing areas comprises the new construction in Wheat Ridge. During the past year, commercial construction included West Pines Hospital and Vineyard Christian Fellowship Church. Interstate 70, which is Colorado's major east-west highway, passes through Wheat Ridge on the north and west. This highway is a major link between Stapleton International Airport, downtown Denver, and the Rocky Mountains. Wheat Ridge is known for its business stability. The major property tax payers include a brewery container plant, a shopping center, a large apartment complex, and a candy manufacturing plant. Sales tax, our largest source of revenue, is derived mainly from four supermarkets, electricity/gas and telephone utilities, a liquor store, and a discount general merchandise store. Lutheran Medical Center employs an estimated 1,100 people, Adolph Coors Co. glass division follows with 455 employees, and Jolly Rancher candies has 225 employees. - I General Fund expenditures for fiscal year 1988 totaled $392,944 less than revenues. This was due to the conservative spending within the departments. Favorable weather, salary savings through vacancies, and lower insurance premiums also added to the savings. Revenues received were as projected. The opening of a Wa1-Mart store in May substantially increased sales tax revenues, and the State Traffic Enforcement Program increased municipal court fines 104% over 1987. The 1989 budget maintains the current level of services while keeping expenditures to a minimum. This no-frills budget is based on extremely conservative revenue estimates that I think we will exceed. It is a balanced budget, and the staff remains committed to that goal. Wheat Ridge still boasts one of the lowest sales and property tax rates in the metro area. MAJOR INITIATIVES During 1988, the City of Wheat Ridge passed its first two bond issuances. Special Assessment Bonds, in the amount of $1,250,000, were sold to reconstruct the North 1-70 Service Road from Kipling to Ward Road. The City paid for twenty percent (20%) of the proj ect and the remainder was assessed to the property owners -+ adjacent to the road. Also, Sales Tax Revenue Bonds, in the amount of $2,990,000, were sold to finance capital projects budgeted in 1988. The bonds will be repaid with future sales tax receipts earmarked for capital projects. The 1989 budget includes appropriations to replace the underground fuel storage tanks at the City Shops, and to construct a storage facility at the Municipal Building. In the past, the capital improvement fund was used solely for drainage, street, and traffic public works projects. This concept has been expanded to finance other needed infrastructure improvements. An agreement was made with the owners of Applewood Village Shopping Center to share in the enhanced sales taxes generated from mutually approved capital improvements made at the center. The improvements will hopefully attract more retail businesses to the location as well as more customers. Federal grant funds and a joint agreement with the City of Lakewood to reconstruct 32nd Avenue between Kipling and Youngfield has been approved. Construction should begin in 1989. The City of Wheat Ridge will contribute one-half to the 2.5 million dollar project. Revitalization of 38th Avenue should begin in 1989 and continue through 1992. The segment between Sheridan and Wadsworth Boulevards will be completed first, as it includes a major portion of the businesses in Wheat Ridge. Improving streets, sidewalks and landscaping in this vital area of Wheat Ridge will hopefully attract and retain businesses while adding to our sales tax base. Wadsworth to Kipling will be the next phase of the construction, then Kipling to Parfet will finish the scheduled 38th Avenue project. CONCLUSION State law requires that the financial statements of the City of Wheat Ridge be audited by an independent certified public accountant selected by the City Council. This requirement has been complied with, and our auditor's opinions are included in the financial and single audit sections of this report. The preparation of this annual financial report could not have been accomplished without the dedicated effort of the City Treasurer's office. I express my appreciation to all involved for their continued efforts in the management of the City's accounting and financial programs. Respectfully submitted, - -. -)~~- // - ---//// /' / Michael J~ Smith, City Administrator 5 POBOX fiJH !ELH'fIiJNF: ,II. hl.:J The Ci tv of IsDn WEST "9TH I\Vr_NU[ . v\HEJ" HI[II,l ,_,'-'IJ:'P,'['" -;'" J ~heat 'Ridge April 3, 1989 The Honorable Mayor Wilde, Wheat Ridge City Council, and City Administrator City of Wheat Ridge Wheat Ridge, Colorado Ladies and Gentlemen: The Comprehensive Annual Financial Report of the City of Wheat Ridge, for the fiscal year ended December 31, 1988, is submitted herewith. This report was prepared by the City Treasurer's office. ACCOUNTING SYSTEM AND BUDGETARY CONTROL In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal control s. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the re1iabili ty of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgements by management. The budget process begins in April and ends with the adoption by City Council prior to November 1 of each year. The budget document is prepared on a non-GAAP (Generally Accepted Accounting Principles) basis, consistent with the accounting records and annual financial statements of the City. Appropriations are controlled and the budget is amended only in conformity with Colorado Revised Statutes. Supplementary budgets and appropriations must be adopted by resolution at a City Council meeting and publication of the proposed resolution in a local newspaper. Budgetary control is maintained by the encumbrance of purchase amounts prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund balance at year end. GENERAL GOVERNMENTAL FUNCTIONS Revenues for general governmental functions (General Fund) totaled $ 8,093,955 in 1988, an increase of 5.9% over 1987. The amount of revenues from various sources and the increase (decrease) over last year are shown in the following table: ..The CarnotlOn City.' () INCREASE PERCENTAGE REVENUES PERCENTAGE (DECREASE) INCREASE BY SOURCE 1988 AMOUNT OF TOTAL FROM 1987 (DECREASE) Taxes $4,852,194 60.0% $ 28,223 .6% Licenses & Permits 270,142 3.3 23,629 9.6 Intergovernmental Revenues 1,457,896 18.0 190,079 15.0 Charges for Services 469,973 5.8 (31,734) (6.3) Fines & Forfeitures 266,251 3.3 135,940 104.3 Interest Income 69,819 .9 (32,499) (31. 8 ) Other Revenue 33,686 .4 (59,524) (63.9) Interfund Transfers 673,994 8.3 194,737 40.6 TOTAL $8,093,955 100.0% $448,851 5.9% The major source of revenue for the City of Wheat Ridge is retail sales and use tax. This comprises thirty-three percent (33%) of total current General Fund revenue. The one percent (1%) General Fund sales tax revenues for 1988 were $2,541,620, an increase of 5.64% or $135,710 over 1987 collections. General Fund use tax revenues for 1988 were $660,152, a decrease of 2.11% or $14,195. Use tax is comprised of professional, building, and auto tax receipts. Retail sales use tax is included in sales tax. Current property tax collections were 99.9 % of the tax levy; the lowest percentage of the levy collected in the last ten years was 98.3% in 1984. The mill levy for the City was 3.5 mills from 1978 to 1987 and has been utilized as a non-restricted general fund revenue. Due to revaluation of Jefferson County property in 1987, the mill levy was changed to 2.082 mills for 1988, and increased to 2.2665 in 1989, to stay within the property tax limitation set by state statute. Municipal Court revenue increased 104% over 1987 due to the State Traffic Enforcement Program (STEP) which started 6/01/88. Expendi tures for general governmental functions (General Fund) totaled $7,837,138, a decrease of 3.0% from 1987. Increases or (decreases) in levels of expenditures for major functions of the City over the past year are shown in the following table: (Non-GAAP basis) EXPENDITURE INCREASE PERCENTAGE ACTIVITY PERCENTAGE (DECREASE) INCREASE BY FUNCTION 1988 AMOUNT OF TOTAL FROM 1987 (DECREASE) General Government $ 994,672 12.7% (20,558) (2.0)% Plan. & Development 456,989 5.8 (27,919) (5.8) Public Safety 3,031,367 38.7 164,318 5.7 Public Works 1,714,887 21.9 (216,819) (11.2) Parks & Recreation 1,100,390 14.0 17,533 1.6 Other 538,833 6.9 (160,946) (23.0) TOTAL $7,837,138 100.0% (244,391) (3.0)% PENSION FUNDING POLICIES The City participates in three (3) mandatory and voluntary pension plans. All full-time, sworn police officers participate in a single employer defined contribution money purchase plan. The employee contributes ten-percent (10%) of annual salary, and the City contributes ten-percent (10%). These officers do not contribute to the Federal Social Security plan. Contributions can also be made on a voluntary basis, which the City does not match. Two (2) department heads and the City Administrator contribute four-percent (4%) and five-percent (5%) respectively, to the International City Managers Association (leMA), I. R. C. Section 457 retirement plan. The City matches these amounts. These employees participate in the Federal Social Security plan. Other City employees can make contributions on a voluntary basis. These voluntary contributions are not matched by the City. The remainder of the full-time permanent employees are required to join the Colorado County Officials and Employees Retirement Association plan after one year of service with the City. These employees contribute four-percent (4%) of their annual salary to the plan, which the City also matches. Participation in the Federal Social Security plan is also mandated for these employees. Employees may also voluntarily contribute amounts up to twenty-one percent (21%) or $7,500 annually. The City does not match these voluntary contributions. DEBT ADMINISTRATION The City may use debt financing when either long-term capital projects are desired, or when it can be determined that future citizens will receive a benefit from the improvement. The City is currently paying for a large piece of equipment using a lease/purchase plan. The lease agreement specifically states that the lease/purchase can be cancelled at any time if the City Council does not appropriate funds for that purpose. Funds are budgeted and encumbered for that years payments only. Wheat Ridge entered into its first long-term bonded indebtedness in 1988. On June 24, 1988, $1.25 million in Special Assessment bonds were issued for the payment of part of the construction costs of local improvements in the newly created Special Improvement District No. 1987-1. By passage of Ordinance 751, Series of 1988, the City Council caused assessments to be imposed against the real property included in the District specially benefitted by the improvements. The assessments are to be paid in ten (10) amortized annual installments of principal and interest, and are certified to the County Treasurer annually for payment with the property tax assessments. Sales Tax Revenue bonds were issued August 12, 1988, for $2.99 million. These bonds, rated "A" by Moody's, were sold to finance capi tal proj ects budgeted in the Capital proj ects Fund. These bonds will be repaid over the next ten years through a one- percent (1%) share of the sales tax collections. Projects include s 32nd Avenue and 38th Avenue reconstruction. As of December 31, 1988, Wheat Ridge has a $119 per capita debt ratio. The two bond issuances make up ten and one-half percent (10.5%) of the legal debt limited by City Charter and a maximum of $30 million remains available for future bond issuances. CASH MANAGEMENT It is the responsibility of the City Treasurer to invest all idle funds and cash is usually invested within each fund. The City of Wheat Ridge has formally adopted the prudent investor rule as a guide to the Treasurer's Office in making municipal investments. City funds may be invested in F.D.I.C.jF.S.L.I.C. insured savings accounts, money market accounts, certificates of deposit, and U.S. Government securities in corformance with Colorado P.D.P.A. requirements. The City Treasurer monitors the interest rates on a daily basis. Relatively small amounts of idle cash are maintained in checking accounts to cover checks written. Certificates of deposit are placed in bid amounts of $100,000. At the end of 1988, the City's investment in certificates of deposit and government securities varied in interest rates from 6.0% to 8.25%, and 5.0% to 6.5% in savings and money market accounts, respectively. RISK MANAGEMENT The City of Wheat Ridge takes seriously the need for a strong risk management program. The City's program includes periodic review of all policies, procedures and activities. Legal review of all contracts, an active employee safety committee, employee training, review of insurance coverage, and other ongoing loss control activities are also employed. Working closely with our insurers and attorneys, the City acts quickly to resolve any known risk management problems. RESERVE POLICY The City of Wheat Ridge maintains at least an eight percent (8%) contingency reserve in the General Fund with the 1986 fund balance being twenty-percent (20%) of expenditures; 1987 at thirteen-percent (13%); and 1988 at nineteen-percent (19%). This represents the amount reserved for such items as emergency expenditures, compensated absences, and salaries budgeted but not allocated. INDEPENDENT AUDIT Colorado state statutes and the Wheat Ridge city charter require an annual audit of the books of account, financial records, and transactions of all administrative departments of the City. An independent certified public accountant selected by the City Council has performed this requirement and the auditor's opinion has been included in this report. In addition, the 1988 report contains a Single Audit Section which is required when participating in a non-major Federal financial assistance program. g AWARDS The City of Wheat Ridge has received the Government Finance Officers Association (GFOA) of the United States and Canada Distinguished Budget Presentation Award for the third consecutive year. Also, GFOA awards a Certificate of Achievement for Excellence in Financial Reporting to local governmental entities for their Comprehensive Annual Financial Report. This report, for fiscal year 1988, has been prepared in the format desired by GFOA and will be submitted for their review. In order to be awarded a Certificate of Achievement, a city must publish an easily readable and efficiently organized comprehensive annual financial report, which contents conform to program standards. Such reports must satisfy both Generally Accepted Accounting Principles (GAAP), and applicable legal requirements. A Certificate of Achievement is valid for one year only. ACKNOWLEDGEMENTS I would like to express my appreciation to Bernadette Kimmey, Budget/Finance Assistant, to Sybil Noss, Chief Accountant, and to members of the accounting staff who prepared this report. Special thanks are extended to members of the independent Certified Public Accounting firm of Gruenler and Associates, P.C., for the manner in which they accomplished the 1988 audit. I~~pectfulll submitted, k':: V~, //~.A-r_.L:,-",--- James O. Malone City Treasurer lU - = GRUENLER & = ASSOCIATES 3201 E. Third Avenue Denver, Colorado 80206 (303) 388-4181 INDEPENDENT AUDITORS' REPORT The Honorable Mayor Members of City Council City Administrator City of Wheat Ridge, Colorado We have audited the accompanying general purpose financial statements of the City of Wheat Ridge, Colorado, as of and for the year ended December 31, 1988, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. - We conducted our audit in accordance with generally accepted auditing standards. 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 includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. - In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Wheat Ridge, Colorado, as of December 31, 1988, and the results of its operations and changes in financial position of its trust fund for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Wheat Ridge, Colorado. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Certified Public Accountants Members of American Institute of Certified Public Accountants Colorado Society of Certified Public Accountants Governmental Finance Officers Association 11 Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying introductory section and statistical section information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Wheat Ridge, Colorado. Such information has not been subjected to the auditing procedures applied in the audit of the financial statements of the City of Wheat Ridge, Colorado, and accordingly, we express no opinion on it. March 20, 1989 12 C~../zue/?lJp~ j {U.;t~~ f L -I GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements overview of the city's operations. These present the financial position and operating and account groups as of December 31, 1988. - - .. .. - - - - 13 provide a financial financial statements results of all funds CITY OF WHEAT RIDGE, COLORADO COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1988 (With comparative totals for year ended December General ASSETS Cash Investments Money purchase plan Receivables: State government County government Other Due from other funds Inventory, at cost Restricted assets: Cash Investments Fixed assets Amount to be provided for retirement of general long-term debt Amount available in debt service fund $ 1,122,335 562,472 118,506 465,212 43,773 112,636 TOTAL ASSETS $ 2,424,934 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable Accounts payable restricted assets Refundable escrow deposits Accrued payroll benefits Due to employees Due to other funds Deferred revenue - property taxes General obligation bonds payable Special assessment debt with governmental commitment Notes payable - capital leases $ 53,708 12,636 100,720 290,291 562,472 Total liabilities 1,019,821 FUND EQUITY Investment in general fixed assets Fund Balance: Reserved for: Encwnbrances Inventory Police retirement system Debt service Unreserved: Designated for subsequent years expenditures Undesignated 10,849 43,773 964,961 385,524 Total fund equity 1,405,101 TOTAL LIABILITIES AND FUND EQUITY $ 2,424,934 31, 1987) Governmental Special Revenue $ 47,802 1,830,458 78,422 5,930 $ 1,%2,612 $ 12,374 632,498 644 , 812 1,461,066 229,133 (372,459) 1,311,140 $ 1,962,612 The accompanying notes are an integral part of this statement. 14 Fund Types Debt Service $ 383,715 166,834 299,000 $ 849,549 $ 166,834 166,834 682,715 682,115 $ 849,549 Capital proiect $ 1,100,00C 1,175,50E_ 451,65: $ 2,121,16] $ 167,294 2,559,86_ 2,121,16 $ 2,121,161 Fiduciary Fund Type Account Groups Totals (Memorandum Only) Trust and General General Agency Fixed Assets Long Term Debt 1988 1987 $ 594,444 $ $ $ 3,248,296 $ 2,616,997 3,005,964 525,000 4,006,342 4,006,342 4,017,205 178,530 807,728 705,165 2,000 198,928 70,271 922,797 342,321 43,773 51,306 112,636 100,449 299,000 17 ,954,977 17,954,977 17 ,878,335 3,881,127 3,881,127 343,948 682,715 682,715 $ 4,602,786 $ 17,954,977 $ 4,563,842 $ 35,085,861 $ 26,-829,527 .. $ $ $ $ 66,082 $ 106,977 .. 12,636 449 44,767 44,767 32,436 261,336 362,056 337,266 - 460,436 460,436 375,495 8 922,797 342,322 729,306 533,150 - 2,990,000 2,990,000 1,250,000 1,250,000 62,506 62,506 86,430 .. 505,211 4,563,842 6,900,586 1,814,525 - 17 ,954,977 17 ,954,977 17 ,878,335 1,639,209 1,653,716 43,773 51,306 4,006,342 4,006,342 4,017 ,205 682,715 91,233 3,845,194 1,409,242 13 ,065 5,198 4,097,575 17,954,977 28,185,275 25,015,002 $ 4,602,786 $ 17,954,977 $ 4,563,842 $ 35,085,861 $ 26,829,527 IS CITY OF WHEAT RIDGE, COLORADO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (With comparative totals for year ended December 31, 1987) REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other Total revenues EXPENDITURES General government Planning and development Public safety Public works Parks and recreation Capital outlay Debt Service: Bond interest Bond issue costs Other Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) General obligation bond proceeds Special assessment bond proceeds Operating transfers in Operating transfers (out) Total other f inancin9 sources (uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES Fund balances, beginning of year Residual equity transfer from other fund FUND BALANCES, END OF YEAR General $ 4,852,194 270,142 1,457,896 469,973 266,251 69,819 33,686 7,419,961 991,362 459,939 3,040,648 1,795,134 1,106,340 537,895 7,931,318 (511,357) 673,994 673,994 162,637 1,218,179 24,291 $ 1,405,107 Governmental Special Revenue $ 2,541,620 286,250 87,443 25,046 2,940,359 75,820 2,262,763 2,338,583 601,776 (941,874) (941,874) (340,098) 1,682,129 (24,291) The accompanying notes are an integral part of this statement. $ 1,317,740 16 Fund Types Debt Service $ 83,390 23,680 107,070 96,088 96,088 10,982 671,733 671,733 682,715 $ 682,715 Capital Project $ 85,792 85,792 1,029,843 164,935 1,194,778 - (1,108,986) 2,990,000 1,250,000 267,880 (671,733) 3,836,147 2,727,161 $ 2,727,161 Fiduciary Fund Type Totals Expendable (Memorandum Only) Trust 1988 1987 $ $ 7,477,204 $ 7,320,112 270,142 246,513 117 ,329 1,861,475 1,783,054 469,973 504,482 266,251 130,311 13,152 279,886 201,425 58,732 382,877 130,481 10,683,663 10,568,774 .. 991,362 1,015,245 459,939 857,971 .. 3,040,648 2,848,032 1,795,134 1,860,842 258,402 1,440,562 1,149,147 .. 3,292,606 2,162,019 96,088 .. 164,935 537,895 698,392 258,402 11,819,169 10,591,648 .. (127,921) (1,135,506) (22,874) .. 2,990,000 1,250,000 .. 1,613,607 479,257 ( 1 ,613 ,(07) (479,257) - 4,240,000 (127,921) 3,104,494 (22,874) 219,154 3,119,462 3,142,337 $ 91,233 $ 6,223,956 $ 3,119,463 17 ~'rTY OF WHEAT RIDGE, COLORADO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (NON-GAAP BASIS) AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 Budget REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other Total revenues $ 5,183,200 269,700 1,426,694 502,818 130,000 135,000 35,000 7,682,412 EXPENDITURES General government Planning and development Public safety Public works Parks and recreation Capital outlay Debt service: Bond interest Bond issue costs Other Total expenditures 1,038,597 547,900 3,156,228 1,982,796 1,103,208 2,293,386 10,122,115 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,439,703) OTHER FINANCING SOURCES (USES) General obligation bond proceeds Special assessment bond proceeds Operating transfers in Operating transfers (out) Total other financing sources (uses) 830,085 830,085 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (BUDGETARY BASIS) $ (l,609,618) ADJUS'l'MEMTS TO GAAP BASIS Encumbrances: Prior year paid in current year Current year outstanding Total adjustments EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (GAAP BASIS) Fund balances, beginning of year Residual equity transfer (to) from other funds FUND BALANCES, END OF YEAR The accompanying notes are an integral part of this 18 General Fund Actual Variance Favorable (Unfavorable) $ 4,852,194 270,142 1,457,896 469,973 266,251 69,819 33,686 7,419,961 $ (331,006) 442 31,202 (32,845) 136,251 (65,181) (1,314) (262,451) 994,672 456,989 3,031,367 1,714,887 1,100,390 43,925 90,911 124,861 267,909 2,818 538,833 7,831,138 1,754,553 2,284,911 (411 ,111) 2,022,526 - 673,994 (156,091) 613,994 (156,091) 256,811 $ 1,866,435 (105,029) 10,849 (94,180) 162,637 1,218,179 24,291 $ 1,405,107 statement. Special Revenue Funds Variance Favorable Budqet Actual (Unfavorable) $ 2,600,000 $ 2,541,620 $ (58,380) 1,100,000 286,250 (813,750) 700 (700) 56,750 87,443 30,693 160,800 25,046 (135,754) 3,918,250 2,940,359 (911,891) 922,900 2,184,641 75,820 3,417 ,593 847,080 (1,232,952) ... 3,101,541 3,493,413 (385,812) .. 810,109 (553,054) (1,363,163) .. .. (933,994) (933,994) (941,874) (941,814) (7,880) (1,880) $ (1,494,928) $ (123,285) (1,311,643) (306,236) 1,461,066 1,154,830 (340,048) 1,682,129 (24,291) $ 1,311,140 19 (Continued on next page) CITY OF WHEAT RIDGE, COLORADO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (NON-GAAP BASIS) AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (Continued) Debt Service Funds Budget Actual REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other Total revenues $ $ 83,390 23,680 107,070 EXPENDITURES General government Planning and development Public safety Public works Parks and recreation Capital outlay Debt service: Bond interest Bond issue costs Other Total expenditures 106,000 96,088 106,000 96,088 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (106,000) 10,982 OTHER FINANCING SOURCES (USES) General obligation bond proceeds Special assessment bond proceeds Operating transfers in Operating transfers (out) Total other financing sources (uses) 106,000 671,733 106,000 671,733 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (BUDGETARY BASIS) $ 682,715 ADJUS'l'MEN'l'S TO GAAP BASIS Encumbrances: Prior year paid in current year Current year outstanding Total adjustments EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (GAAP BASIS) 682,715 Fund balances, beginning of year Residual equity transfer (to) from FUND BALANCES, END OF YEAR The accompanying notes are an other funds $ 682,715 integral part of this statement. 20 Variance Favorable (Unfavorable) $ 83,390 23,680 107,070 9,912 9,912 97,158 565,733 $ 565,733 682,715 Capital PrOlect Fund Budget Actual Variance Favorable (Unfavorable) $ $ $ 85,792 85,792 85,792 85,792 1,144,000 1,197,137 (53,137) - 164,935 (164,935) - 1,144,000 1,362,072 (218,072) - (l,144,000) (1,276,280) 303,864 .. 2,990,000 2,990,000 1,144,000 1,250,000 106,000 267,880 267,880 .. (671,733) (671,733) 1,144,000 3,836,147 2,692,147 $ 2,559,867 $ 2,559,867 167,294 167,294 2,727,161 $ 2,727,161 21 CITY OF WHEAT RIDGE, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES POLICE PENSION FUND - TRUST FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (With comparative totals for year ended December 31, 1987) 1988 1987 OPERATING REVENUES Contributions: City Employees - mandatory Employees - voluntary $ 161,879 161,879 14,689 338,447 $ 153,571 153,571 17 ,812 324,954 Total contributions Total operating revenues 281,172 15,618 635,237 435,969 (37) Interest Capital gain (loss) 760,886 OPERATING EXPENSES Withdrawals by participants Trustee administrative charges Total operating expenses 625,590 20,510 646,100 84,397 20,968 105,365 - Fund balance, beginning of year (10,863) 655,521 4,017,205 3,361,684 $ 4,006,342 $ 4,017,205 NET (LOSS) INCOME FUND BALANCE, END OF YEAR - The accompanying notes are an integral part of this statement. 22 CITY OF WHEAT RIDGE, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES POLICE PENSION FUND - TRUST FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (With comparative totals for year ended December 31, 1987) 1988 1987 USE (SOURCE) OF FUNDS Net loss (income) $ 10,863 $ (655,521) Money purchase plan, beginning of year 4,017,205 3,361,684 MONEY PURCHASE PLAN, END OF YEAR $ 4,006,342 $ 4,017,205 - - .. .. - - - - The accompanying notes are an integral part of this statement. 7 ~ ~.) CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Wheat Ridge, Colorado,(the City) , conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies. A. Principles used in determining the scope of the reporting entity for financial purposes. In conformance with Governmental Accounting and Financial Reporting Standards, the City of Wheat Ridge, Colorado, is the reporting entity for financial reporting purposes. In 1976 the City of Wheat Ridge became a "Home Rule City" (a municipal corporation) as defined by Colorado Revised Statutes. The City is the lowest level of government having oversight responsibility and control over all activities within the geographical area organized as the City of Wheat Ridge, Colorado. The City is not included in any other governmental reporting entity because the City Council and certain officials are publicly elected, they are empowered to adopt a budget to expend City revenues, select management, significantly influence operations and are primarily accountable for fiscal matters. The Urban Renewal Fund, a component unit, is included in the City financial statements. Separate financial statements are not issued for the Urban Renewal Fund. - The financial statements of the City include all funds and account groups that are controlled by or dependent upon the elected officials. Control by or dependence on the elected officials is determined on the basis of budget adoption, taxing authority, outstanding debt which may be secured by general obligation of the City, and the responsibility of the City to finance debt or make subsidies to funds and account groups. Three new funds were created in 1988. These funds are the capital project fund, the special improvement district bond fund, and the incremental sales tax bond fund. All other funds and account groups were included in last year's report. - - - The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures, or expenses, as accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements in this report, into five generic fund types and two broad fund categories as follows on the following pages: 24 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) B. Basis of presentation - fund accounting Governmental Funds General Fund - is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. On December 31, 1985 Council Resolution 757 authorized the establishment of a Police Department Bond Trust. The City collects cash bail bonds from individuals arrested in the City who are being held on warrants issued by other units of local government. The bond trust is a statewide program. The activities of this fund are currently included in the general fund due to the limited materiality of the fund. .. Special Revenue Funds - are used of specific revenue sources that expendi tures for specif ic purposes. revenue funds. to account for the proceeds are legally restricted to The City has six special ~ Capital Improvement Fund - was established to account for the funds received as a result of a one percent increase in the City's sales tax. Funds are only used for capital expenditures. The Fund was closed in 1988. - ... Urban Renewal Fund - was established in 1981, with seed money from the City, to be responsible for and seek to accomplish the redevelopment and rehabilitation of blighted areas. Revenue is received from incremental sales tax growth over the 1981 base year, from property taxes, and from interest on invested funds. This fund was closed in 1988. I L ... Federal Revenue Sharing Fund accounts for monies received through the "State and Local Fiscal Assistance Act of 1972". The Act provides funds to units of local government to be used for ordinary and necessary maintenance, operating expenses, and capital expenditures as authorized by the Act, which also specifies certain restrictions and procedural requirements. This fund was closed in 1988. .. Senior Center - accounts for contributions made to the Wheat Ridge Community Center. Expenditures support acti vi ties of the Center. Park Acquisition Fund - accounts for revenues, (donations, grants, city contributions or from other sources) received and designated for the acquisition of additional parks and related improvements. Buildinq Demolition Fund - this revolving fund charges owners for expenses incurred in the demolition of buildings. 25 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) B. Basis of presentation - fund accounting - (continued) Governmental Funds - (continued) Debt Service Funds - are used to account for Financial resources to be used for the accumulation of resources for, and payment of, general long term debt principal, interest, and related costs. The City created two debt service funds in 1988. Incremental Sales Tax Bond Fund accounts for funds received from one percent of the City's sales tax receipts in 1988. These funds are used to retire a $ 2,990,000 general obligation revenue bond issued in 1988. Special Improvement District Bond Fund accounts for funds received from a special improvement district bond issued in 1988. The City is responsible for any deficit in this fund. Capital Project Fund - accounts for financial resources to be. used for the acquisition or construction of major capital facilities. This fund was created in 1988 to account for the proceeds from issuance of the general obligation sales tax revenue and special assessment district bonds issued in 1988. .. Fiduciary Fund Types Trust and Agency Funds by the City in a trustee include a Pension Trust, Agency Funds. are used ~o account for assets held capacity or as an agent. City funds an Expendable Trust Fund, and three The Pension Trust Fund is accounted for in essentially the same manner as a proprietary fund, that is operations are financed and operated in a manner similar to private business enterprise, since capital maintenance is critical. The Expendable Trust Fund is accounted for in essentially the same manner as governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of operations. Trust and Agency Funds of the City include the following: Police Pension (Trust) Fund - accounts for funds received from plan participants and City contributions from the General Fund. The funds are held in trust for disbursement to participants upon their leaving the plan or upon qualified retirement. 26 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) B. Basis of presentation - fund accounting - (continued) Fiduciary Fund Types - (continued) Conservation (Expendable) Trust Fund accounts for funds received and restricted as to use in the acquisition, development and maintenance of new conservation sites pursuant to Colorado Revised Statutes, Title 138. Public Works Escrow (Aqency) Fund received, prior to the issuance of permits, to guarantee the work required completion the funds are returned. accounts for funds certain construction by the permit. Upon .. Deferred Compensation (Agency) Fund and matching City contributions into plan established under section 457 code. - accounts for employee a deferred compensation of the internal revenue .. CATV (cable television) Property Damaqe (Agency) Fund accounts for funds received from the cable television permittee for settlement of minor unresolved claims against the permittee for damage to private property. The permittee is required to restore City paid settlements within fourteen days of notification. .. .. Account Groups .. The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Asset Account Group rather than governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, street, drainage systems, and lighting systems, are capitalized along with other general fixed assets. No depreciation has been provided for on general fixed assets. .. - ~- - .' CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) B. Basis of presentation - fund accounting - (continued) Account Groups - (continued) All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Approximately 5% of the fixed assets are valued at estimated historical cost. Contributed fixed assets are valued at their estimated fair value on the date of gift. Generally, the City capitalizes acquisitions whose life exceed one year and whose cost exceeds $ 200. Land improvements transferred to the City from Jefferson County from 1969 to 1977 had been recorded at the County's cost. Subsequently the City elected to discontinue recording the cost of all land improvements. - The Jefferson County Open Space Program acquires land enjoyment (e.g., parks, playgrounds, lakes, etc.) donates the property to the City for use as public property is recorded at the cost recorded by the Program. for public and then land. The Open Space Long term liabilities expected funds are accounted for in the not in the governmental funds. to be financed from governmental General Long-Term Account Group, - The two account groups are not "funds". They are concerned only with the measurement of financial position. They do not get involved with measurement of results of operations. - Total Columns on Combined Financial Statements Total columns on the Combined Statements-Overview are captioned "Memorandum Only" to indicate that they are presented only to facilitate analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. - Investments Investments, certificates of deposit and the money purchase plan, are stated at cost, which approximates market value, and accrued interest receivable. 28 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) B. Basis of presentation - fund accounting - (continued) Inventories The City's Consumption expenditures in first out governmental funds account for inventory on the method. Inventory items are recorded as when used. The inventories are valued on a first (FIFO) method. Comparative Data - Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Such data is not comparable to a consolidation because interfund eliminations have not been made in the aggregation of this data. - C. Basis of Accounting .. Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. I.. L. All governmental and expendable trust funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets (see also following notes). L. Those revenues susceptible to accrual are property taxes, interest revenue, and grant revenue from state and federal sources. Fines, permi ts and sales tax revenues are not susceptible to accrual because generally they are not measurable until received in cash. I.. - Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. - Trust and City in a for using Agency funds are used to account for trustee capacity. The Pension Trust the accrual basis of accounting. assets held by the fund is accounted Property Taxes Property taxes are levied on December 15 of each year and attach as an enforceable lien on property as of January 1. Taxes are due as of January 1 of the following year and are payable in full by July 31 if paid in installments or April 15 with a single payment. Taxes are delinquent as of August 1. If the taxes are not paid within subsequent statutory periods, the property will be sold at public auction. Jefferson County bills and collects the property taxes and remits collections to the City on a monthly basis. 29 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) C. Basis of Accounting - (continued) Compensated absences As of December 31, 1988 the entire liability for accrued sick leave is expected to be liquidated with expendable available resources and has been reported as an expenditure and a fund liability of the general fund. Accrued sick leave is calculated by taking the employees total unused hours in excess of 480 times one-half their current hourly rate of pay. Unused sick leave in excess of 480 hours may also be converted to annual leave. As of December 31, 1988 the entire liability for accrued holiday and vacation leave are not expected to be liquidated with expendable available financial resources, and thus have been reported in the general long-term debt account group. Accrued salaries and benefits The accrued salaries and benefits result from a timing difference between when the employees are paid and the end of the fiscal year. The total accrued salaries and benefits are paid during the first pay period in the next year. The entire liability for accrued salaries and benefits will be liquidated with expendable available financial resources. The entire balance of $ 87,933 has been reported as a liability of the general fund. - D. Budgetary information General Budqet policies The City conforms to the following procedures, with Colorado Revised Statutes, in establishing data reflected in the financial statements: in compliance the budgetary - Prior to september 1, the City Administrator (not an elected official) submits a proposed operating budget for the fiscal year commencing the following January 1, to the City Council (elected officials). The operating budget, for all funds except agency funds, includes proposed expenditures and the means of financing. Public hearings are held at regular City council meetings to obtain taxpayer input. 30 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) D. Budgetary information - (continued) General Budqet Policies - (continued) Prior to November 1, the budget is legally enacted through passage of a budget resolution. The City Administrator is authorized to transfer budgeted amounts within the department of any fund. City Council must approve revisions that change total expenditures of any fund. - In addition to the operating budget, a five-year Capital Improvement Program is proposed by the City Administrator and adopted by City Council. This program identifies projected expenditures and anticipated revenues by fund. The Program is revised and extended annually. The City Council adopts the program as a planning document but does not appropriate the mUlti-year expenditures. Annual installments to the identified projects are appropriated in the annual operating budgets or by supplemental appropriations. - ... " , 11 ... Appropriations are controlled by and the budget is only amended in conformity with Colorado Revised Statutes. The City Charter requires a balanced budget. Expendi tures in excess of appropriations may violate Colorado revised Statutes and must be reported to the State Auditor. l.. Encumbrances L Encumbrances accounting, under which purchase orders and other commitments related to unperformed (executory) contracts for good or services, are recorded for budgetary control purposes in the general and special revenue funds. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Encumbrances do not lapse at year-end for budgetary purposes (non-GAAP) and become part of the following year's appropriations. ~i l.. - - Budqet basis of accountinq The Individual and Combined Statements of Revenues, Expenditures and Changes in Fund Balances for the governmental fund types include comparisons to budget. The budgets are adopted and presented in the financial statements on the non-GAAP basis. The budgets include encumbrances, but exclude other receivables, accounts payable and accrued payroll benefits. Budgeted amounts include supplemental appropriations of $ 24,291 in the general fund, $ 106,000 in the special improvement district bond fund, and $ 1,144,000 in the capital project fund. 31 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS ASSETS A. Cash deposits and investments Cash deposits The Colorado Public Deposit Protection Act, (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool 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 100% of the uninsured deposits. At December 31, 1988 the City cash deposits had a bank balance and corresponding carrying balance as follows: Total deposits Bank Carrying Balance Balance $ 1,505 $ 1,505 812,097 812,097 2,706,269 2,547,330 $ 3,519,871 $ 3,360,330 - Petty cash Insured deposits Deposits collateralized in a single institution pool - Investments - Colorado statutes specify in which instruments units of local government may invest, which include: Repurchase agreements, Obligations of the United States or obligations unconditionally guaranteed by the United States, Obligations of the State of Colorado and most general obligations of units of local government, Federally insured mortgages and student loans, Participation with other local governments in pooled investment funds (Colotrust). These trusts are supervised by participating governments, and must comply with the same restrictions on cash deposits and investments. -~ J~ CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS - (continued) ASSETS A. Cash deposits and investments - (continued) Investments - (continued) In addition to the allow pension trust Corporations. instruments listed above, Colorado statutes funds to invest in equity securities of U.S. The City's investments are categorized below to give an indication of the level of security assumed at year-end. Category 1 which the the City's - investments that are insured or registered or for securities are held by the entity or its agent in name. .. Carrying Market Category 1 Value Value Colotrust $ 725,000 $ 725,000 $ 725,000 Treasury bills 2,579,964 2,579,964 2,579,964 Police Pension Trust equity securities 4,006,342 4,006,342 4,006,342 Total $ 7,311,306 $ 7,311,306 $ 7 ,311,306 B. Property taxes - receivable - .. .. .. It is the policy of the City to record the property tax receivable in the year in which the taxes are levied and to recognize the property tax revenues in the year in which the lien attaches on the property. Property taxes are reported as a receivable and a deferred revenue in the amount of $ 729,306. - C. Restricted assets - cash and investments - General Fund cash of $ 100,000 has been restricted by City Council for emergency situations affecting 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 a subsequent report is made at the next City Council meeting. - As of December 31, 1988 the police bond trust account restricted cash balance and related accounts payable of (see also Note 1B, General Fund). had a $ 3,427 The police investigation unit accounts for confiscated cash, and property received from police investigations. This account was set up under state statute. The balance in this account and the related payable as of December 31, 1988 is $ 9,209. 33 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS - (continued) ASSETS C. Restricted assets - cash and investments - (continued) Debt Service revenue bond terms of the principal and cash of $ 299,000, 10% of the general obligation issue of $ 2,990,000, is legally restricted by the bond issue to be restricted for payment of bond interest when the bond issue is completely repaid. D. Changes in general fixed assets The changes in general fixed assets for the year ended December 31, 1988 are as follows: Balance Balance January 1, December 31, 1988 Additions Deletions 1988 Land $ 2,448,290 $ $ $ 2,448,290 Buildings 3,011,262 3,011,262 Improvements 1,009,568 1,436 1,011,004 Streets 8,106,465 8,106,465 Equipment 3,302,750 233,037 157,831 3,377,956 Total $ 17,878,335 $ 234,473 $ 157,831 $ 17 ,954,977 LIABILITIES E. Pension plans - - - - The City maintains a single employer defined contribution money purchase plan (The Plan) which covers all of its full time, sworn police officers.The City also participates in a statewide local government plan, Colorado County Officials and Employees Retirement Association (CCOERA) a multi-employer defined contribution plan which covers all other City employees except 3 department heads who participate in a Plan as defined by the Internal Revenue Code Section 457 (IRC-457). No securities of the City were held by any of these plans, nor did they loan the City any funds. - - The Money Purchase Plan (The Plan) Plan description and provisions: All of the City's full time, sworn police officers participate in The Plan, a single employer defined contribution money purchase plan. The payroll for employees covered by The Plan for the year ended December 31, 1988 was $ 1,618,787, the City's total payroll was $ 4,570,306. Current membership in The Plan is comprised of the following: 34 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS - (continued) LIABILITIES - (continued) E. Pension plans - (continued) The Money Purchase Plan (The Plan) - (continued) Plan description and provisions: - (continued) Group December 31, 1988 3 4 52 4 paid. City - Retirees and beneficiaries currently receiving benefits Vested terminated employees Active employees: Fully vested Nonvested Employee contributions are 100% vested when contributions and Plan income vest as follows: - Years of service Percentage .. - Three Four Five Six Thereafter per year o 40 45 50 10 .. - Employees may retire after 25 years of service or receive the cumulative contributions to The Plan allocated portion of Plan income. at age 55 and including an Employees and the City are required to contribute ten percent of the employee's annual salary, but employees may increase their contribution to fifteen percent. Contributions Required and Contributions Made: During the year ended December 31, 1988, contributions - totaling $ 161,879 City and $ 176,567 employees - were made in accordance with the provisions of The Plan. 3S CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS - (continued) LIABILITIES - (continued) E. Pension plans - (continued) Colorado County Officials and Employees Retirement (CCOERA) Association Plan description and provisions: Employees and officers of the City are required to join CCOERA or IRC-457 after completing one year of service. Participation by elected officials is optional. The payroll for employees covered by CCOERA for the year ended December 31, 1988 was $ 2,015,213, the City's total payroll was $ 4,570,306. There are 84 employees participating in CCOERA. Employee contributions are 100% vested when paid. City contributions and CCOERA income vest at the rate of 10% per year. However, in the event that the City would withdraw from CCOERA, all participants would vest at 100% of all contributions and income in CCOERA. Employees and the City are required to contribute four percent of the employee's annual salary. Income of CCOERA is allocated to participant's on a quarterly basis. Benefit payments are determined as of the date of retirement, termination, death or disability. Contributions Required and Contributions Made: During the year ended December 31, 1988 employees and the City each contributed $ 80,609 in accordance with the provisions of CCOERA. Retirement Plan, Internal Revenue Code Section 457 (IRC-457) Plan description and provisions: Other employees participate in IRC-457. The payroll for employees covered by IRC-457 for the year ended December 31, 1988 was $ 121,784, the City's total payroll was $ 4,570,306. There are 3 employees participating in IRC-457 on a mandatory basis. Other City employees are making contributions on a voluntary basis. These contributions are not matched by the City. Employee and City contributions are 100% vested upon termination, retirement, death or disability. Employees and the City are required to contribute 4% or 5% of the employee's annual salary. IRC-457 requires that the assets in IRC-457 remain the property of the City until paid or made available to participants, subject only to the claims of the City's general creditors. In addition the City has fiduciary responsibility for the assets of IRC-457, which are managed by an independent trustee. 36 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS - (continued) LIABILITIES - (continued) E. Pension plans - (continued) Retirement Plan, Internal Revenue Code Section 457 (IRC-457) - (continued) Contributions Required and Contributions Made: During the year ended December 31, 1988 employees and the City each contributed $ 5,421 in accordance with the provisions of IRC-457. - F. Lease obligations .. .. The City is obligated, as a liability of the general fund, for certain leases which have been capitalized. The leases are subject to the appropriation of funds by the City. In addition, one of the leases contains provisions for a scheduled early purchase option. Following is a schedule by year of future minimum payments under the capital lease, together wi th the present value, calculated at the City's incremental borrowing rate as of the inception of the lease. The future minimum lease obligations are as follows: - I... Year ended December 31, Iioo 1989 1990 1991 $ 28,787 28,787 11,996 69,570 (7,064) $ 62,506 .. Total minimum lease payments Amount representing interest - Present value of long-term obligation under capital lease 37 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 2. DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS - (continued) LIABILITIES - (continued) G. Long-term debt On June 1, 1988 the City issued $ 1,250,000 of special assessment bonds to provide funds for the improvement of streets. The City contributed $ 260,000 to the project. The bonds have a stated interest rate of 7.50%. The debt service requirements to maturity are as follows: Interest Principal Total 1989 $ 121,360 $ 275,000 $ 396,360 1990 73,832 80,000 153,832 1991 68,633 85,000 153,633 1992 62,895 90,000 152,895 1993 56,594 100,000 156,594 Thereafter 157,893 620,000 777,893 Total $ 541,207 $ 1,250,000 $ 1,791,207 On July 1, 1988 the City issued $ 2,990,000 in general obligation revenue bonds with a stated interest rate of 7.06%. The City pledged a one percent incremental sales tax revenue to retire this debt issue. The proceeds were reported in the capital project fund. Debt service requirements to maturity are as follows: Interest 1989 $ 210,925 1990 210,925 1991 210,925 1992 210,925 1993 210,925 Thereafter 1,065,780 Total $ 2,120,405 Principal 2,990,000 $ 2,990,000 Total $ 210,925 210,925 210,925 210,925 210,925 4,055,780 $ 5,110,405 $ H. Schedule of changes in General Long-Term Debt Balance Balance January 1, December 31, 1988 Additions Deletions 1988 General obligat- ion debt $ $ 2,990,000 $ $ 2,990,000 Special assess- ment debt 1,250,000 1,250,000 Capital leases 86,430 23,924 62,506 Vacation leave 203,018 216,880 195,209 224,689 Holiday leave 54,500 123,339 141,192 36,647 Total $ 343,948 $ 4,580,219 $ 360,325 $ 4,563,842 38 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 3. INTERFUND RECEIVABLES AND PAYABLES A summary of interfund receivable and payables follows: Fund Receivable Payable General $ 465,212 $ 290,291 Special Revenue Capital Improvement 5,930 632,498 Agency Public Works 8 Capital Project 451,655 - TOTAL $ 922,797 $ 922,797 .. 4. RESERVATIONS AND DESIGNATIONS OF FUND BALANCES - Encumbrances outstanding and inventory at year end are reported as reservations of fund balances, they do not constitute expenditures or liabilities. L The Police Pension legally restricted upon retirement. (Trust) fund is reserved because the balance is to provide future benefit payments for the Police ! ... L.. Debt service fund balances are legally restricted to provide for interest, and related costs. reserved because the balance is the retirement of debt principal, . L. The City designated unreserved fund balances in an amount equal to the budgeted individual carryover fund balance per the 1989 budget. 5. BUDGETARY - GAAP REPORTING RECONCILIATION - The accompanying schedule presents comparisons of the legally adopted budget, (more fully described in Note 1D) with actual data on a budgetary basis for the general and special revenue funds. Because accounting principles applied for purposes of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity with GAAP, a reconciliation of resultant timing differences in the excess (deficiency) of revenues and other sources of financial resources over expenditures and other uses of financial resources for the year ended December 31, 1988 is presented on the next page. - - 39 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS 5. BUDGETARY - GAAP REPORTING RECONCILIATION - (continued) General Special Revenue Capital Project Excess of revenues and other sources of financial resources over expenditures and other uses of financial resources (budgetary basis) $ 262,747 $ (1,500,858) $ 2,559,867 Adjustments: Encumbrances: Prior year paid in current year Current year outstanding (105,029) $ 10,849 (306,236) 1,461,066 167,294 Excess of revenues and other sources of financial resources over expenditures and other uses of financial resources (GAAP basis) $ 168,567 $ (346,028) $ 2,727,161 6. LITIGATION The City has been named in several lawsuits; however, the City Attorney has estimated that those claims not covered by insurance would not materially affect the financial statements of the City. - 7. VIOLATION OF STATE STATUTES The expenditures of the capital improvement fund, incremental sales tax bond fund, and capital project fund exceeded the appropriations. This may be a violation of Colorado Revised Statues. The City did not adopt and appropriate a budget for the incremental sales tax bond fund in 1988. When this fund was created the debt service schedule had the first interest payment in early January 1989. Subsequent to the creation of this fund the debt service schedule was amended so that the first interest payment was to be made in late December. The capital project fund expenditures exceeded appropriations because the City failed to budget for the bond issue costs. - 40 SUPPLEMENTAL INFORMATION - COMBINING, INDIVIDUAL, AND ACCOUNT GROUP STATEMENTS AND SCHEDULES The following combining, individual fund, and individual account group financial statements are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. .. .. ... l.. l.. .. - - n GENERAL FUND The General Fund accounts for all transactions of the City not required to be accounted for in other funds. This fund represents an accounting for the City'S ordinary operations financed primarily from property and sales taxes. It is the most significant fund in relation to the City's overall operations. - _I - - .+2 CITY OF WHEAT RIDGE, COLORADO COMPARATIVE BALANCE SHEET GENERAL FUND DECEMBER 31, 1988 (With comparative totals for year ended December 31, 1987) 1988 ASSETS Cash Accounts receivable: County government Other Due from other funds Inventory Restricted assets - cash $ 1,122,335 562,472 118,506 465,212 43,773 112,636 $ 2,424,934 TOTAL ASSETS - - LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ Accounts payable restricted assets Accrued payroll benefits Due to other funds Deferred revenue - property taxes 12,636 100,720 290,291 562,472 1,019,827 53,708 .. ... Total liabilities .. FUND EQUITY Fund balance: Reserved: Reserved for encumbrances Reserved for inventory Unreserved: Designated for subsequent years expenditures Undesignated 964,961 385,524 1,405,107 10,849 43,773 - Total fund equity TOTAL LIABILITIES AND FUND EQUITY $ 2,424,934 43 1987 $ 890,652 533,150 70,271 317,498 51,306 100,449 $ 1,963,326 $ 106,977 449 79,748 24,823 533,150 745,147 117,324 51,306 1,049,549 1,218,179 $ 1,963,326 CITY OF WHEAT RIDGE, COLORADO GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (With comparative actual amounts for year ended December 31, 1987) REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other 1988 $ 4,852,194 270,142 1,457,896 469,973 266,251 69,819 33,686 7,419,961 Total. revenue EXPENDITURES General government Planning and development Public safety Public works Parks and recreation Other 991,362 459,939 3,040,648 1,795,134 1,106,340 537,895 7,931,318 Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (511,357) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers (out) 673,994 Total. other financing sources (uses) 673,994 EXCESS (DEFICIENCY) OF REVENUES AND UTltKl< FINANCING SOURCES OVER EXPENDITURES AND UTltKl< FINANCING USES 162,637 Fund balances, beginning of year 1,218,179 Residual equity transfer from other fund 24,291 $ 1,405,107 FUND BALANCES, END OF YEAR 44 1987 $ 4,823,971 246,513 1,267,817 501,707 130,311 102,318 93,210 7,165,847 1,015,230 484,908 2,867,049 1,931,706 1,082,858 699,779 8,081,530 - (915,683) - 479,257 (143,254) 336,003 - (579,680) 1,708,629 $ 1,218,179 CITY OF WHEAT RIDGE, COLORADO GENERAL FUND STA'l'EIlENT OF REVENUES, EXPENDI'l.'ORES AllD CllAlIGES IN FUJlD BALANCE BUDGET (NOIi-GAAP BASIS) AllD ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (~ith comparative actual amounts for year ended December 31, 1987) - Variance Favorable BudQet Actual (Unfavorable) 1987 IlEYEIIOIS Taxes $ 5,183,200 $ 4,852,194 $ (331,006) $ 4,823,971 Licenses and permits 269,700 270,142 442 246,513 Intergovernmental 1,426,694 1,457,8% 31,202 1,267,817 Charges for services 502,818 469,973 (32,845) SOl,707 Fines and forfeitures 130,000 266,251 136,251 130,311 Interest 135,000 69,819 (65,181) 102,318 Other 35,000 33,686 (1.314) 93.210 ToW n!W!IIDe 7 .682.412 7 .419.961 (262.451) 7 .165.847 EIPI!IIl:mJll!S General government 1,038,597 994,672 43,925 1,015,230 Planning and develoJXlle1lt 547,900 456,989 90,911 484,908 Public safety 3,156,228 3,031,367 124,861 2,867,049 Public works 1,982,796 1,714,887 267,909 1,931,706 Parks and recreation 1,103,208 1,100,390 2,818 1,082,858 Other 2.293.386 538.833 1.754.553 699.779 ToW e>lpI!IIditures 10.122.115 7.837.138 2.284.977 8.081.530 EXCESS (1IlFIc:IEEY) lW IlEYEIOIlS OVEII. EIPDID1'IlIIES (2.439.1m) (417 .171) 2.022.526 (915.683) .. - L L 0!IIEIl FTD~ SlIIlCES (USIS) Operating transfers in 830,085 673,994 (156,091) 479,257 Operating transfers (out) (143.254) Total other financing sources (uses) 830.08S 673.994 056 .(91) 336.003 EXCESS (1IlFIc:IEEY) lW IlEYEIOIlS III) 0!IIIlIl ~ SlllIICII:S OVEII. ~ III) 0ftIlI FTDrlJIl; lJSIlS (1DA1'nII9 IIISIS) S 0.609.618} 256.817 S 1.866.439 (579.6lIl) ADJ.............. TO GAIl' IIISIS Encumbrances : Prior year paid in current year (105,029) (28,095) Current year outstanding 10.849 117 .325 ToW adj....t.:uts (94.1I1ll 89 .230 EXCESS (1IlFIc:IEEY) lW REYIlIUIlS III) lJIIIlII ~ SlllIICII:S OVEII. Ul'PAJUUlliS III) 0!IIIlIl FIIUCIE lJSIlS (GAIl' IIISIS) 162,637 (490,450) Fund balances, beginning of year 1,218,179 1,708,629 Residual equity transfer frem other fund 24.291 F1IID llAu......., EIIllW YIWl S 1.405.101 S 1.218.179 45 i... .. SPECIAL REVENUE FUNDS Special Revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The City has six special revenue funds: The Capital Improvement Fund - was established to account for the funds received as a result of a one percent increase in the City's sales tax. Funds are only used for capital expenditures. This fund was closed in 1988. Urban Renewal Fund was established during 1981, with seed money from the City, to be responsible for and seek to accomplish the redevelopment and rehabilitation of blighted areas. Revenue is currently being received from incremental sales tax growth over the 1981 base year from property taxes and from interest on invested funds. The Fund was closed in 1988. Federal Revenue Sharing Fund accounts for monies received through the "State and Local Fiscal Assistance Act of 1972". The Act provides funds to units of local governments to be used for ordinary and necessary maintenance, operating expenses, and capital expenditures authorized by the Act. The Act also specifies certain restrictions and procedural requirements. The Fund was closed in 1988. - Senior Wheat of the Center Fund Ridge Community center. accounts for contributions made to the Center. The expenditures support activities - Park Acquisition Fund designated for use in related improvements. accounts for revenues received and the acquisition of additional parks and - Building Demolition Fund - This revolving fund charges property owners for City expenses incurred in the demolition of buildings. 46 - .... .... '- .... - .... - - - CITY OF WHEAT RIDGE, COLORADO SPECIAL REVENUE FUNDS COMBINING BALANCE SHEETS DECEMBER 31, 1988 (With comparative totals for the year ended December 31, 1987) Federal Capital Urban Revenue Improvement Renewal Sharing ASSETS Cash $ 475 $ $ Investments 1,830,458 Accounts receivable: State government County government 78,422 Due from other funds 5,930 TOTAL ASSETS $ 1,915,285 $ $ LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 12,374 $ $ Due to other funds 632,498 Total liabilities 644,872 FUND EQUITY Fund balances: Reserved for encumbrances 1,461,066 Unreserved: Designated for subsequent years expenditures 181,806 Undesignated (372,459) Total fund equity 1,270,413 TOTAL LIABILITIES AND FUND EQUITY $ 1,915,285 $ $ 47 Senior Park Building Totals Center Acquisition Demolition 1988 1987 $ 6,499 $ 25,490 $ 15,338 $ 47,802 $ 1,053,496 1,830,458 525,000 178,530 78,422 172,015 5,930 24,366 L. $ 6,499 $ 25,490 $ 15,338 $ 1,962,612 $ 1,953,407 L $ $ $ $ 12,374 $ 632,498 271,278 L 644,872 271,278 L l 1,461,066 1,529,332 l.. 6,499 25,490 15,338 229,133 147,599 L (372,459) 5,198 6,499 25,490 15,338 1,317,740 1,682,129 - $ 6,499 $ 25,490 $ 15,338 $ 1,962,612 $ 1,953,407 .. :+8 CITY OF WHEAT RIDGE, COLORADO SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (With comparative actual amounts for year ended December 31, Capital Improvement Urban Renewal REVENUES Taxes Intergovernmental Charges for services Interest Miscellaneous $ 2,541,620 286,250 $ 85,314 18,496 2,931,680 Total revenues EXPENDITURES Planning and development Parks and recreation Capital outlay 66,085 2,259,530 2,325,615 Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING (USES) Operating transfers (out) 606,065 (941,874) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING USES (335,809) Fund balances, beginning of year 1,606,222 24,291 Residual equity transfer (to) other fund (24,291) FUND BALANCES, END OF YEAR $ 1,270,413 $ 49 1987) Federal Revenue Sharinq $ 30 30 3,233 3,233 (3,203) - I (3,203) 3,203 $ Senior Park Building Totals Center Acquisition Demolition 1988 1987 $ $ $ $ 2,541,620 $ 2,496,141 286,250 387,266 2,775 702 1,397 87,443 89,013 5,724 826 25,046 289,667 6,426 1,397 826 2,940,359 3,264,862 367,759 - 9,735 75,820 16,306 2,262,763 2,165,266 .. 9,735 2,338,583 2,549,331 (3,309) 1,397 826 601,776 715,531 ... I (941,874) (336,004) I... $ (3,309) 1,397 826 (340,098) 379,527 ... 9,808 24,093 14,512 1,682,129 1,302,602 - (24,291) $ 6,499 $ 25,490 $ 15,338 $ 1,317,740 $ 1,682,129 50 CITY OF WHEAT RIDGE, COLORADO SPECIAL REVENUE FUNDS COMBINIJlG STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (NON-Gill BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED DECEKBER 31, 1988 (With comparative actual amounts for year ended December 31, 1987) Capital ImProvement Variance Favorable Buduet Actual (Unfavorable) IIEYEIlIES Taxes $ 2,600,000 $ 2,541,620 $ (58,380) Intergovernmental 1,100,000 286,250 (813,750) Charges for services Interest 55,000 85,314 30,314 Miscellaneous 150,000 18 ,496 (131,504) Total .I.C~ 3.905.000 2.931.611I (973.J2l)) loAI.'UU.lnlllES Planning and developuent - Parks and recreation 880,000 66,085 813,915 Capital outlay 2,166,006 3,414,360 (1.248,354) Total expeIIlti.tmes 3.046.006 3.480.445 (434.439) EIC!SS (IlIlFICIEIl:Y) lW IIEYEIlIES OVER 1W'IlAl17Wl!S 858,994 (548,765) (1,407,759) <mIIlIl FIDIICIE SOORCES (1ISI!S) Operating transfers in (out) (933,994) (941,874) (7.880) EXCESS (IlIlFICIEIl:Y) lW IlE9IlIlII!S All) 0!IIEIl FTDrTa: SOORCES OVER IlJPEIIIl!UIIES All) 0!IIIlR yY1IUInE 1ISI!S (1IIDlIl'PU'f BISIS) $ 1"15.000) 11.490.639) $ 11.415.639) AIl.J"".....~" '10 GIIP BISIS Encumbrances: Prior year paid in current year Current year outstanding _! (306,236) 1,461,066 Total adj...t-ls 1.154.830 EXCESS (IlIlFICIEIl:Y) lW ....YUIl:> All) 0!IIIlIl ~ SOORCES OVER EXP....Il'fIIIES All) 0!IIIlIl FIDIICIE 1ISI!S (GIIP BISIS) (335 ,IIO'J) Fund balances, beginning of year 1,606,222 Residual equity transfers (to) other funds FOIIl RAT~, F.IIl lW YIiIIl $ 1.270.413 Sl Urban Renewal Federal Revenue Sharina Senior Center Variance Variance Variance Favorable Favorable Favorable BudQet Actual (Unfavorable) BudQet Actual (Unfavorable) BudQet Actual (Unfavorable) $ $ $ $ $ $ $ $ $ 50 30 (20) 1,000 702 (298) 10,000 5,724 (4,276) 50 30 (2D) 11.000 6.426 (4.574) ... L. L s s s (3.200) (3.E) S (3) s (6.500) (3.309) S 3.191 - - (3,203) (3,309) 24,291 3,203 9,808 (24,291) s s S 6.499 (Continued on next page) 5~ CITY OF WHEAT RIDGE, COLORAOO SPECIAL REVENUE FUNDS COMBDIIHG STATEMENT OF REVENUES, EXPElIDrruRES AND CHANGES IN FUIiD BALAIICE BUDGET (NON-GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 (With comparative actual amounts for year ended December 31, 1987) (Continued) Park Acquisition total rewIIDI!S BudQet $ $ 700 700 1.400 Actual Variance Favorable (Unfavorable) REYIlIIII!S Taxes Intergovernmental Charges for services Interest Iliscellaneous $ 1,397 (700) 697 1.397 (3) ~ Planning and developnent Parks and recreation Capital outlay 25,400 25,400 - total l!X(Il!Ilditures 25.400 25.400 EXClS5 (IlIlFICIEII:Y) OF ICI\Y_ OV!R Ul'YWDIKIIS (24,000) 1,397 25 ,397 0IIIIlII ~ SOlIlCI!S (USIS) Operating transfers in (out) EXClS5 (IlIlFICIEII:Y) OF REYIlIIII!S IIIl 0!HIIl ~ SOlIlCI!S oml ItIPIIIImIIlJ!S IIIl ll'I'IIBR ~ \ISIS (1IIlGEDIlY 1lISJS) S (24.000) - 1.397 S 25.397 AJ).,...........i> '!O 6llP IlISJS Encumbrances: Prior year paid in current year Current year outstanding total ..dj....t-lJJ EXClS5 (IlIlFICIEII:'f) OF IIEYEIlII!S IIIl 0IIIIlII ~ SOlIlCI!S oml unaunJllGi IIIl 0IIIIlII ~ OSIS (6llP 1lISJS) 1,397 Fund balances, beginning of year 24,093 Residual equity transfers (to) other funds PIlI) BlLDCES, Ell) OF 'lEIII S 25.490 S3 Buildinq Demolition Totals Variance Variance Favorable Favorable Budqet Actual (Unfavorable) Buduet Actual ( Unfavorable ) 1987 $ $ $ $ 2,600,000 $ 2,541,620 $ (58,380) $ 2,496,141 1,100,000 286,250 (813,750) 387,266 700 (700) 2,775 56,750 87,443 30,693 89,013 800 826 26 160.800 25.046 (135,754) 289,667 800 826 26 3.918.250 2.940.359 (971 .891) 3.264.862 .. 367,759 922,900 75,820 847,080 16,306 - 15,385 15,385 2,184.641 3.417 ,593 (1.232,952) 3,582.958 15.385 15.385 3.107 .541 3.493.413 (385.872l 3.967 .023 .. (14,585) 826 15,411 810,709 (553,054) (1,363,763) (702,161) .. (933,994) (941.874) (7,880) (336,004) I.. $ U4.585l 826 $ 15.411 $ U23 .2115 1 U.494.92Bl $ U.3TI.6Cl U.038.165l I.. (306,236) 1.461.066 (79,735) 1.497.427 - 1.154.830 1.417.692 - 826 (340,098) 379 ,5Il 14,512 1,682,129 1,302,602 (24,291) $ 15.338 $ 1.311.740 $ 1.682.129 54 DEBT SERVICE FUNDS Debt service funds are used to account for financial resources to be used for the accumulation of resources for, and payment of, general long term debt principal, interest, and related costs. The City created the debt service funds in 1988. Incremental Sales Tax Bond Fund - accounts from one percent of the City's sales tax These funds are used to retire a $ obligation revenue bond issued in 1988. for funds receipts 2,990,000 received in 1988. general Special Improvement District Bond Fund - accounts for special assessment property taxes received for a special improvement district bond issued in 1988. The City is responsible for any deficit of this fund. .. .. - - - - 56 CITY OF WHEAT RIDGE, COLORADO DEBT SERVICE FUNDS COMBINING BALANCE SHEETS DECEMBER 31, 1988 ASSETS Cash Accounts receivable: Special assessment property tax Restricted investment TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES Deferred revenue Total liabilities FUND EQUITY Fund balances: Reserved for debt service Total fund equity TOTAL LIABILITIES AND FUND EQUITY Incremental Sales Tax Bond Fund $ 40,749 $ 299,000 339,749 $ 339,749 339,749 $ 339,749 S7 $ $ $ $ Special Improvement District Bond Fund 342,966 166,834 509,800 166,834 166,834 342,966 342,966 509,800 Total $ 383,715 166,834 299,000 $ 849,549 _I $ 166,834 166,834 - 682,715 682,715 - - $ 849,549 CITY OF WHEAT RIDGE, COLORADO DEBT SERVICE FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 Incremental Sales Tax Bond Fund REVENUES Taxes Intergovernmental Charges for services Interest Other $ 13,918 - Total revenues 13,918 ~ EXPENDITURES Debt service: Bond interest 96,088 96,088 ... Total expenditures L. EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (82,170) L OTHER FINANCING SOURCES Operating transfers in 421,919 Fund balances, beginning of year , 1.0 $ 339,749 FUND BALANCES, END OF YEAR - - 58 Special Improvement District Bond Fund $ 83,390 9,762 93,152 93,152 249,814 $ 342,966 Total $ 83,390 23,680 107,070 96,088 96,088 10,982 671,733 $ 682,715 CITY OF WHEAT RIDGE, COLORADO DEBT SERVICE FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 Incremental sales Tax Bond Fund Variance Favorable Budget Actual (Unfavorable) REVENUES Taxes $ $ $ Intergovernmental Charges for services Interest 13,918 13,918 Other Total revenues 13,918 13,918 EXPENDITURES Debt service: Bond interest 96,088 (96,088) Total expenditures 96,088 (96,088) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (82,110) (82,110) OTHER FINANCING SOURCES Operating transfers in 421,919 421,919 Fund balances, beginning of year FUND BALANCES, END OF YEAR $ $ 339,749 $ 339,749 S9 Special Improvement District Bond Fund Total Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ $ 83,390 $ 83,390 $ $ 83,390 $ 83,390 9,762 9,762 23,680 23,680 93,152 93,152 107,070 107,070 .. 106,000 106,000 106,000 96,088 9,912 106,000 106,000 106,000 96,088 9,912 ... (106,000) 93,152 199,152 (106,000) 10,982 116,982 ... 106,000 249,814 143,814 106,000 671,733 565,733 .. .. $ $ 342,966 $ 342,966 $ $ 682,715 $ 682,715 60 CAPITAL PROJECT FUND The capital project fund accounts for financial resources to be used for the acquisition or construction of major capital facilities. This fund was created in 1988 to account for the proceeds from the issuance of general obligation sales tax revenue and special assessment district bonds, issued in 1988. - .. - 01 CITY OF WHEAT RIDGE, COLORADO CAPITAL PROJECT FUND BALANCE SHEET DECEMBER 31, 1988 ASSETS Cash Investments Due from other funds TOTAL ASSETS - FUND EQUITY Fund balances: Reserved for encumbrances Unreserved: Designated for subsequent years expenditures TOTAL FUND EQUITY .. - 10. , ... 62 $ 1,100,000 1,175,506 451,655 $ 2,727,161 167,294 2,559,867 $ 2,727,161 CITY OF WHEAT RIDGE, COLORADO CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 REVENUES Interest $ 85,792 EXPENDITURES Capital outlay Debt service: Bond issue costs 1,029,843 Total expenditures 164,935 1,194,778 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,108,986) U'.l:'11KK FINANCING SOURCES (USES) General obligation bond proceeds Special assessment bond proceeds Operating transfer in Operating transfer (out) 2,990,000 1,250,000 267,880 (671,733) Total other financing sources (uses) 3,836,147 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES 2,727,161 Fund balances, beginning of year FUND BALANCES, END OF YEAR $ 2,727,161 b3 CITY OF WHEAT RIDGE, COLORADO CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (NON-GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 Budget Actual Variance Favorable (Unfavorable) REVENUES Interest $ $ 85,792 $ 85,792 EXPENDITURES Capital outlay Debt service: Bond issue costs Total expenditures 1,144,000 164,935 1,362,072 (53,137) (164,935) (218,072) 1,144,000 1,197,137 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,144,000) (1,276,280) (132,280) - OTHER FINANCING SOURCES (USES) General obligation bond proceeds Special assessment bond proceeds Operating transfer in Operating transfer (out) 1,144,000 2,990,000 1,250,000 267,880 (671,733) 2,990,000 106,000 267,880 (671,733) .. Total other financing sources (uses) 1,144,000 3,836,147 2,692,147 L EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND U'.1."HlU( USES (BUDGETARY BASIS) $ 2,559,867 $ 2,559,867 - ADJUSTMENTS TO GAAP BASIS: Encumbrances: Current year outstanding 167,294 - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES (GAAP BASIS) 2,727,161 Fund balances, beginning of year FUND BALANCES, END OF YEAR $ 2,727,161 b4 FIDUCIARY FUNDS Trust and agency funds are used to account for assets held by the City in a trustee capacity or as an agent. The City has five such funds: Pension Trust Fund Police Pension Fund accounts for monies received from Plan participants and City contributions from the General Fund. The funds are held in trust for disbursement to qualified participants upon leaving the plan or upon qualified retirement. Expendable Trust Fund Conservation (Expendable) Trust Fund accounts for funds received and restricted for use in the acquisition, development and maintenance of new conservation sites pursuant to Colorado Revised Statutes. Agency Funds The Public Works Escrow Fund received prior to the issuance of to guarantee the work required by the funds are returned. accounts for funds certain construction permits, the permit. Upon completion Deferred Compensation (Agency) Fund and matching City contributions into plan established under section 457 Code. - accounts for employee a deferred compensation of the Internal Revenue - The CATV (cable television) Property Damage Fund accounts for funds received from the cable television permittee for settlement of minor unresolved claims against the permittee for damage to private property. The permittee is required to restore city paid settlements within fourteen days after notification. bS CITY OF WHEAT RIDGE, COLORADO FIDUCIARY FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1988 (With comparative totals for year ended December 31, 1987) Pension Expendable Aaencv Funds Trust Fund Trust Fund Public Deferred CATV Police Conservation \/orks Compensation Property Totals Pension Trust Escrow Fund Damaae 1988 1987 ~ Cash $ $ 91,233 $ 40,275 $ 460,436 $ 2,500 $ 594,444 $ 672,849 Money purchase plan 4,006,342 4,006,342 4,017,205 Accounts receivable 2,000 2,000 Due from other funds 457 TOrIL ~ * 4.006.342 * 91.233 * 42.275 * 460.436 * 2.500 * 4.602.786 * 4.690.511 LIAIllLITIES AIIl YlIID IIWl'l'Y .. LIAIllLITIES Refundable escrow deposits $ $ $ 42,267 $ $ 2,500 $ 44,767 $ 32,436 We to employees 460,436 460,436 375,495 Due to other funds 8 8 46,221 .. Total liabilities 42.275 460.436 2.500 505.211 454.152 ... YlIID IiQUl'lf r'und balances: ... Reserved: Reserved for police retirement system 4,006,342 4,006,342 4,017 ,205 Unreserved : - Designated for subsequent years I expenditures 91.233 91.233 219.154 Total fUDd equity 4.006.342 91.233 4 .0lJ7 .575 4.236.359 TOrIL IllRTTl'I'IES AJI) rom IiQUl'lf * 4.006.342 * 91.233 * 42.275 * 460.436 * 2.500 * 4.602.786 * 4.690.511 66 CI'rY OF WHEAT RIDGE, COLORADO AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED DECEMBER 31, 1988 Balance Balance January 1, December 31, 1988 Additions Deductions 1988 PUBLIC WORKS ESCROW FUND ASSETS Cash $ 29,479 $ 18,184 $ 7,388 $ 40,275 Accounts receivable 2,000 2,000 Due from other funds 457 457 TOTAL ASSETS $ 29,936 $ 20,184 $ 7,845 $ 42,275 LIABILITIES I Refundable escrow deposits $ 29,963 $ 19,692 $ 7,388 $ 42,267 - Due to other funds 8 8 TOTAL LIABILITIES $ 29,963 $ 19,700 $ 7,388 $ 42,275 - DEFERRED COMPENSATION FUND ASSETS - Cash $ 375,495 $ 94,236 $ 9,295 $ 460,436 LIABILITIES $ - Due to employees 375,495 $ 94,236 $ 9,295 $ 460,436 CATV PROPERTY DAMAGE FUND ASSETS Cash $ 2,500 $ $ $ 2,500 LIABILITIES Refundable escrow deposits $ 2,500 $ $ $ 2,500 6;" GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group records changes in the City's ownership of and investment in capital assets including land, buildings, improvements to land and buildings, streets, bridges, curbs and gutters, drainage systems, lighting systems, and other equipment, the lives of which are greater than one year and whose cost exceeds $ 200. - - - ~ L ~ L - - 63 CITY OF WHEAT RIDGE, COLORADO SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCES DECEMBER 31, 1988 Additions Deletions Balance and and Balance January 1, Transfers Transfers December 31, 1988 in out 1988 GENERAL FIXED ASSETS Land $ 2,448,290 $ $ $ 2,448,290 Buildings 3,011,262 3,011,262 Improvements 1,009,568 1,436 1,011,004 Streets 8,106,465 8,106,465 - I Equipment 3,302,750 233,037 157,831 3,377,956 Total $ 17,878.335 $ 234,473 $ 157,831 $ 17.954,977 INVESTMENT IN GENERAL FIXED ASSETS FROM: Assets contributed to the City $ 10,156,579 $ 886 $ $ 10,157,465 Acquired by various funds 7,721,756 233,587 157,831 7,797,512 Total $ 17,878.335 $ 234,473 $ 157,831 $ 17 ,954.977 - - - b9 CITY OF WHEAT RIDGE, COLORADO SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY DECEMBER 31, 1988 Balance Additions Deletions Balance January 1, And And December 31, 1988 Transfers Transfers 1988 General Government City council $ 72,697 $ $ 71,519 $ 1,178 Treasurer 171,619 2,168 173,787 Mayor 1,680 1,680 City administrator 16,121 7,493 8,628 Attorney 211 211 City clerk 20,670 20,670 Municipal court 21,775 21,775 Total 304,798 2,168 79,012 227 ,954 Planning and development 93,690 9,986 83,704 - Public Safety Police administration 473,855 11,619 462,236 Support services 53,010 280 53,290 - Operations 195,670 98,671 303,341 Civil disaster 4,543 4,543 - Total 727 ,078 98,951 11,619 823,410 Public Works Administration 8,736,630 41,082 8,695,548 - Engineering 173,173 20,395 193,568 Street maintenance 861,270 3,408 864,678 Traffic maintenance 125,617 1,251 126,868 - Shops 215,639 12,884 228,523 Total 10,112,329 37,938 41,082 10,109,185 Parks and Recreation Administration 2,997,588 83,403 5,597 3,075,394 Recreation 991,078 757 991,835 Parks maintenance 522,006 10,535 511,471 Total 4,510,672 84,160 16,132 4,518,100 other Building 2,129,768 2,256 2,132,024 Total General Fixed Assets $ 17,878,335 $ 234,473 $ 157,831 $ 11 ,954,977 70 CITY OF WHEAT RIDGE, COLORADO SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTIOll AllD ACTIVITY DECEMBER 31, 1988 Total Land Buildinas ImProvements Streets Eauil>llellt 6eDeral ~ City council $ 1,178 $ $ $ $ $ 1,178 Treasurer 173,782 173,782 Mayor 1,680 1,680 City administrator 8,628 8,628 Attorney 211 211 eit y clerk 20,700 20,700 Municipal court 21. 775 21,775 'l'uW ZZl .954 ZZl .954 Planning and ~ 83.704 83.704 Public Safety Police administration 462,236 2,761 384 459,091 Support services 53,290 2,060 51,230 - Operations 303,341 303,341 Ci vii disaster 4,543 4,543 - Total 843.410 2,761 2,444 818.205 Public lbrks Administration 8,695,548 530,350 8,106,465 58,733 Engineering 193,568 69,807 123,761 Street maintenance 864,678 864,678 Traffic maintenance 126,868 126,868 - Shops 228.523 60,000 168.523 'l'uW 10,109,185 660,157 8.106.4.65 1.342.563 - Parks and lIo!cn!&t.ial Administration 3,075,394 1,701,166 223,005 796,662 354,561 Recreation 991,835 39,617 888,904 12,588 50,726 Parks maintenance 511.471 47,350 56.366 115 .898 291.857 'l'uW 4,578.700 1. 788.133 1,168.775 925.148 6'n .144 other Building 2,132.024 1.840,226 83.412 208.386 'futal ~ FUed Assets $ 17 ,954.9T1 $ 2.448.290 S 3.011.AIli2 S 1.0ll.lXM S 8.106.465 S 3.3TI .956 71 CITY OF WHEAT RIDGE, COLORADO GENERAL FUND EXPENDITURES (NON-GAAP BASIS) BY FUNCTION LAST TEN FISCAL YEARS (UNAUDITED) Planning Fiscal General and Public Public Parks & Year Government Development Safety Works Recreation Other 1979 $ 726,494 $ 233,663 $ 1,403,831 $ 806,805 $ 552,629 $ - 1980 883,372 271,921 1,598,132 991,384 654,024 1981 734,335 293,261 1,762,605 1,071 , 586 722,164 207,082 1982 807,314 311,314 2,005,761 1,308,280 804,408 243,544 1983 962,928 360,204 2,205,152 1,530,321 921,383 291,790 - 1984 1,228,869 476,656 2,340,767 1,855,061 997,960 32,382 , 1985 979,111 495,766 2,443,412 1,867,383 1,079,096 368,772 10.. 1986 1,031,810 560,808 2,871,557 1,840,480 1,172,194 582,198 L 1987 1,015,230 484,908 2,867,049 1,931,706 1,082,857 699,779 l 1988 994,672 456,989 3,031,367 1,714,887 1,100,390 538,833 10.. L ! I.. - Source: City of Wheat Ridge audited financial statements, 1979-1988 72 Total $ 3,723,42. 4,398,83: 4,791,03 5,480.62 6,271,771 6,931,69' 7,233,54( 8,059,04 8,081,53( I 7,837,13, CITI OF WHF.AT RIDGE, COLORADO GENERAL FUND REVENUES AND nm:RFUJlD TRANSFERS BY SOURCE LAST TEN FISCAL YRARS (UNAUDITED) Intergov- Charges Fiscal Licenses ernmental for Fines & Miscel- Interfund ~ Taxes & Permits Revenues Services Forfeitures Interest laneous Transfers Total 1979 $ 2,934,279 $ 110,542 $ 807,380 $ 55,768 $ 59,050 $ 114,296 $ '2:37,507 $ $ 4,318,822 1980 3,309,487 79,865 933,857 110,310 78,434 164,242 45,310 4,721,505 1981 3,857,430 155,2.34 811,413 145,631 69,752 456,195 5,495,655 1982 4,222,600 125,112 846,452 173,513 90,151 413,692 40,930 5,912,450 - 1983 4,346,971 185,2ti7 946,012 176,660 120,657 272,229 99,454 6,147,250 - 1984 4,659,862 '2:38,948 1,305,923 194,095 110,212 301,036 34,427 280,830 7,125,333 1985 4,829,408 215,851 1,154,850 192,463 115,653 222,708 29,254 610,405 7,370,592 - 1986 4,975,833 223,959 1,153,163 199,848 132,573 141,845 35,224 84,054 6,946,499 1987 4,823,971 246,513 1,2ti7,817 501,707 130,311 102,318 93,210 479,257 7,645,104 - 1988 4,852,194 270,142 1,457,896 469,973 2ti6,251 69,819 33,686 013,994 8,093,955 - - Source: City of Wheat Ridge audited financial statements, 1979-1988 73 CITY OF WHEAT RIDGE, COLORADO PROPERTY TAX LEVIES AND COLLECTIONS - GENERAL FUND LAST TEN FISCAL YEARS (UNAUDITED) Percent of Total Current Percentage Delinquent Total Total Tax Fiscal Tax Tax of Levy Tax Tax Collections Year Levy Collections Collected Collections Collections to Levy 1979 $ 409,432 $ 403,315 98.5 % $ 152 $ 403,467 98.5 % 1980 423,671 416,965 98.4 2,408 419,373 99.0 1981 444,397 442,011 99.5 1,273 443,284 99.7 - 1982 446,001 441,997 99.1 350 442,347 99.2 - 1983 459,300 453,033 98.6 1,982 455,015 99.1 1984 485,824 477,500 98.3 172 477 ,672 98.3 L 1985 485,921 478,253 98.4 193 478,446 98.5 L 1986 499,738 494,608 99.0 238 494,846 99.0 1987 505,630 501,449 99.2 820 502,269 99.3 L 1988 545,454 544,869 99.9 1,095 545,964 100.1 l L - - Source: Jefferson County Assessors' office and the City of Wheat Ridge audited financial statements, 1979-1988 74 CITY OF WHEAT RIDGE, COLORADO ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Assessed to Fiscal Assessed Estimated Total Estimated Year Valuation Actual Value Actual Value 1979 $ 121,027,600 $ 403,425,293 30.0 % 1980 126,819,040 422,730,091 30.0 1981 127,448,920 424,829,691 30.0 1982 131,113,740 437,045,756 30.0 1983 145,391,770 484,634,387 30.0 1984 138,806,980 462,689,934 25.0 1985 142,459,340 474,866,841 25.0 1986 145,389,150 484,630,500 25.0 1987 265,326,680 1,129,048,426 23.5 1988 253,324,240 1,125,885,511 22.5 - - A. Jefferson County is the collection agent for the City, and as such could not break out real property from personal property. The amounts shown above represent both types of property. B. Properties within the City are assessed by County Assessor on January 1, of each year. property was assessed at 22.5% of the assumed at January 1, 1985, the valuation date. the Jefferson For 1988 the market value, Source: Jefferson County Assessors' office 75 CITY OF WHEAT RIDGE, COLORADO PROPERTY TAX RATES - ALL OVERLAPPING GOVERNIIEN'rS LAST TEN FISCAL YEARS (UNAUDITED) Urban North West Drainage \/heat \/heat Ci ty of School Belahe Fruitdale Lakewood & Flood Valley \/estridge Ridge Ridge Fiscal \/heat Jefferson District Sanitation Sanitation Sanitation Control Water Sanitation Fire Sanitation Year RidQe County R-l District District District District District District Protection District 1979 3.500 14.960 50.520 12.700 7.080 4.720 0.450 4.850 6.970 2.700 3.210 1980 3.500 16.710 54.570 13.620 6.540 4.980 0.880 4.320 6.970 2.800 2.500 1981 3.500 18.810 52.270 27.240 6.550 5.390 0.900 4 980 6.970 2.990 2.500 1982 3.500 20.810 54.110 29 .100 6.020 5.770 0.900 4.560 6.970 3.160 2.940 .. 1983 3.500 24.150 59.760 30.720 5 020 5.950 o 900 3.780 8.810 3.180 2.930 1984 3.500 24.090 58.690 32.870 'i.l00 6.890 0.900 4.110 9.490 3.520 3 260 .. 1985 , 500 25 040 61. 550 35.920 4.720 7.360 0.900 4.070 9.490 3.690 3.450 ... 1986 3.500 28 790 63.730 38.410 4 720 8.060 1 000 4 180 9.490 3.910 3.690 1987 2.020 17 .140 36.630 18.172 2.683 4.570 0.518 2.408 5.463 2.240 1.943 L 1988 2.265 18.890 40.312 24.332 3.210 5 157 0.577 2.643 6.405 2.597 2.488 L Note: All numbers shown are Mill Levies (amounts assessed per $1,000) I.. .. - Source: Jefferson County Assessors' Office 7h CITY OF WHEAT RIDGE, COLORADO SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) Current Current Ratio of Total Fiscal Assessments Assessments Collections Outstanding Year Due Collected to Amount Due Assessments 1979 $ $ % $ 1980 1981 1982 1983 1984 1985 1986 1987 1988 1,250,000 221,388 .18 1,028,612 - Note: In 1988 the City issued $ 1,250,000 in special assessment debt. The property owners were offered the option to pay their prorata share of the assessment over the next ten years or the entire balance in May of 1988 less a 5% discount. The City collected $ 83,390 from the assessed district and an additional $ 137,998 from the bond proceeds applied against the debt in a negotiated settlement with two of the affected property owners. The Assessment due for 1989 is $ 166,834. Source: City of Wheat Ridge audited financial statements, 1979-1988 ..,.., , CITY OF \lIIEAT RIDGE, COLORADO RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS (UNAUDI'l'ED ) Ratio of Net Net Debt Bonded Bonded Gross Service Net Debt to Debt Fiscal Assessed Bonded Funds Bonded Assessed Per Year Population Value Debt Available Debt Value Capita 1979 30,164 $ 121,027,600 $ $ $ % $ 1980 30,207 126,819,040 1981 30,250 127 ,448,920 1982 30,293 131,113,740 1983 30,336 145,391,770 1%4 30,280 138,806,980 - 1985 30,280 142,459,340 1986 30,480 145,389,150 ... 1987 29,506 265,326,680 1988 29 ,864 253,324,240 4,240,000 682,715 3,557,285 1.40 119 - L. Source: City of Wheat Ridge audited financial statements, 1979-1988 78 CITY OF WHEAT RIDGE, COLORADO COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 1988 (UNAUDITED) Computation of maximum debt allowed: 1988 estimated actual valuation Legal debt limit percentage $ 1,125,885,511 3% Legal debt limit $ 33,776,565 Amount of Debt outstanding: Total bonded debt $ 4,240,000 (682,715) 3,557,285 33,776,565 Less: Funds available in debt service fund Net bonded debt outstanding Legal debt limit Legal debt margin $ 30,219,280 - - - Source: City of Wheat Ridge charter and Jefferson County Assessors' Office 79 CITY OF WHEAT RIDGE, COLORADO ~ COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 1988 (UNAUDITED) Overlapping Gross Percentage Debt Debt Applicable Applicable Taxinq Authority Outstanding to City to City Jefferson County $ 615,000 6.9 % $ 42,435 School District R-1 139,100,000 6.9 9,597,900 Valley Water District 633,287 80.0 506,630 Westridge Sanitation 790,000 9.1 71,890 Total overlapping debt 10,218,855 City of Wheat Ridge 4,240,000 100.0 4,240,000 Total direct and overlapping debt $ 14,458,855 - - L L L L l .. .. - Source: The taxing authorities listed above and the Jefferson County Assessors' Office 80 CITY OF WHEAT RIDGE, COLORADO RATIO OF ANNUAL DEBT SERVICE FOR GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Year Principal 1979 $ $ 1980 1981 1982 1983 1984 1985 1986 1987 1988 Total Debt Service Interest $ 96,088 96 , 088 Total General Fund Expenditures $ 3,723,422 4,3CJ8,833 4,791,033 5,480,621 6,271,778 6,931,695 7,233,540 8,059,047 8,081,530 7,837,138 Ratio of Debt Service to Total General Fund Expenditures % - - 1. 23 - - Source: City of Wheat Ridge audited financial statements, 1979-1988 81 CITY OF WHEAT RIDGE, COLORADO REVENUE BOND COVERAGE SALES TAX REVENUE BONDS LAST TEN FISCAL YEARS (UNAUDITED) Sales Fiscal Tax Debt Service Requirements Year Revenues Principal Interest Total Coverage 1979 $ 3,308,300 $ $ $ 1980 3,390,018 - 1981 3,864,922 1982 4,584,320 - 1983 4,544,172 1984 5,009,416 - 1985 4,899,670 - 1986 4,990,110 1987 4,811,818 - 1988 5,083,240 96,088 96,088 52.90 .. .. Note: Sales tax revenues is included since debt service is paid with sales tax proceeds. Source: City of Wheat Ridge audited financial statements, 1979-1988 82 CITY OF WHEAT RIDGE, COLORADO DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (UNA.UDITED) Average Number of Per Years of Fiscal Capita Median Formal School Unemployment Year Population Income Age Schoolinq Enrollment Rate 1979 30,164 $ 9,329 33 12.8 5,455 3.3 % 1980 30,207 10,102 34 12.8 5,140 4.3 1981 30,250 10,940 34 12.8 4,808 4.5 1982 30,293 11,850 34 12.8 4,791 5.4 1983 30,336 12,440 35 12.8 4,653 5.3 1984 30,280 12,335 34 12.8 4,669 4.7 1985 30,280 12,828 34 12.8 4,663 4.8 1986 30,480 12,828 34 12.8 4,337 6.4 - 1987 29,506 12,977 35 12.8 4,562 5.6 1988 29,864 13,000 35 13 4,658 5.8 - Source: The 1980 Census Bureau statistics, the Colorado Division of Employment and Training, and the Jefferson County School District R-1 83 CITY OF WHEAT RIDGE, COLORADO CONSTRUCTION, PROPERTY VALUE, AND BANK DEPOSITS LAS~ TEN FISCAL YEARS (UNAUDITED) Commercial Residential Construction Construction Number Number Estimated Total Fiscal of Estimated of Estimated Actual Bank Year Units Value Units Value Value Deposits 1979 16 $ 5,148,178 82 $ 2,078,171 $ 403,425,293 $ 53,467,000 1980 13 1,973,771 20 1,216,517 422,730,091 56,588,000 1981 22 13 , 562 ,824 151 5,703,199 424,829,691 64,562,000 1982 5 3,339,102 197 5,795,927 437,045,756 82,479,000 .. 1983 12 5,964,496 357 9,765,110 484,634,387 98,124 000 - 1984 12 3,720,831 224 9,282,037 462,689,934 115,456,000 1985 '3 6,210,435 186 6,848,498 474,866,841 124,733,000 - 1986 12 7,382,110 56 2,770,741 484,630,500 145,302,000 1987 4 3,272,180 63 4,828,885 1,114,861,021 756,995,487 - 1988 11 1,996,272 14 1,838,209 1,125,885,511 132,468,920 - - - - Source: The City of Wheat Ridge Building Department, the Jefferson County Assessors' Office and local bank financial statements 84 CITY OF WHEAT RIDGE, COLORADO PRINCIPAL TAXPAYERS DECEMBER 31, 1988 (UNAUDITED) Taxpayer Assessed Valuation Adolph Coors Company $ 9,327,506 4,026,426 1,414,826 1,407,471 Applewood Village Shopping Center Leaf Inc Tri KB Investment Inc. LIC Investments Inc. 1,298,143 Kipling Ventures Ltd. 1,291,595 FirstBank of Wheat Ridge N A 1,270,337 Lincoln Newgate Assoc. Ltd. 1,180,263 1,169,775 Denver Shopping Plaza Ltd. Foothills Medical Building 1,056,225 Source: Jefferson County Assessors' Office 8S Percentage of Total Valuation 3.68 % 1. 59 0.56 0.55 0.51 0.51 - 0.50 0.46 0.46 0.42 - - CITY OF WHEAT RIDGE, COLORADO MISCELLANEOUS STATISTICS DECEMBER 31, 1988 ( UNAUDITED) Date of incorporation Form of Government Area Miles of streets Number of Street Lights Fire protection: Number of stations Number of fire fighters and officers (exclusive of volunteer fire fighters) Police protection: Number of stations Number of police officers - Education: Attendance Centers Elementary Schools Junior High Schools High Schools .. .. Sewers: Storm sewers Building permits issued .. Recreation and culture: Number of parks Number of Libraries Number of Volumes - Employees: Elected Appointed 1969 Home rule 9.1 Sq. Miles 120 1,341 2 1 1 57 5 4 (1,404 students) 2 (974 students) 2 (2,280 students) 26.3 Miles 87 18 w/521 acres 1 35,000 11 158 Note: The School District is not a component unit of the City. 86 CITY OF WHEAT RIDGE, COLORADO INSURANCE COVERAGE DECEMBER 31, 1988 (UNAUDITED) Description of Coverage Amount of Coverage Comprehensive general liability including automobile liability, police professional, and errors and omissions coverage. $ 150,000 per person $ 400,000 per occurance Crime insurance $ 2,000,000 per occurance Property insurance $ 51,000,000 per occurance Federal acts and out-of state claims $ 1,000,000 per occurance All of the above insurance is provided through the Colorado Intergovernmental Risk Sharing Agency (CIRSA). CIRSA purchases insurance for some coverage, while others are self-funded by the pool. Some coverages are limited for members as a whole to the amount available in the applicable loss fund at the time of payment of any covered claim of expense. All coverages have a $ 10,000 per occurrence deductible. .. Boiler and machinery $ 1,000,000 accident $ 250 accident deductible $ 1,000 accident deductible for deep well pumps - I Workers' compensation Limits as required by state statute. ... Workers' compensation insurance is provided through the Colorado Intergovernmental Risk Sharing Agency for Workers' compensation (CIRSA/WC). CIRCA/WC purchases excess insurance and has a self- insured retention for the first $ 250,000 per occurrence. Coverage is limited for members as a whole to the amount available in the loss fund at the time of payment of any covered claim or expense. 87 = GRUENLER & = ASSOCIATES 3201 E. Third Avenue Denver, Colorado 80206 (303) 388-4181 INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE The Honorable Mayor Members of the City Council City Administrator City of Wheat Ridge, Colorado We have audited the general purpose financial statements of the City of Wheat Ridge, Colorado, for the year ended December 31, 1988, and have issued our report thereon dated March 20, 1989. Our audit of such general purpose financial statements was made in accordance with generally accepted aUditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. - Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been sUbjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. - March 20, 1989 &~?~~ Pc Certified PubliC Accountants Members at American Institute of Cerlifled Public Accountants Colorado Society at Certified PubliC Accountants Governmental Finance Ofllcers Association 89 CITY OF WHEAT RIDGE, COLORADO SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE FOR THE YEAR ENDED DECEMBER 31, 1988 u.s. Department of Treasury Federal CFDA Number State and Local Government Fiscal Assistance - Revenue Sharing 21.300 u.s. Department of Transportation Passed through State Department of Highways: State and Community Highway Safety 20.600 Pass- Through Grantor's Number DOH 88-195 Grant Year Grant Amount FY 1988 1988 268,109 Total Federal Financial Assistance gO Accrued Revenue 1-1-88 $ 3,203 - - $ 3,203 - - - Revenue $ 175,914 $ 175,944 Expenditures 30 $ 3,233 172,117 $ 175,350 Accrued Revenue 12-31-88 $ 3,797 $ 3,797 91 - = GRUENLER & = ASSOCIATES 3201 E, Third Avenue Denver, Colorado 80206 (303) 388-4181 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO The Honorable Mayor Members of City Council City Administrator City of Wheat Ridge, Colorado We have audited the general purpose financial statements of the City of Wheat Ridge, Colorado, for the year ended December 31, 1988, and we have issued our report thereon dated March 20, 1989. Our audit was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, issued by the U.S. General Accounting Office, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City of Wheat Ridge, Colorado, is responsible for the City's compliance with laws and regulations. In connection with the examination referred to above, we selected and tested transactions to determine the City's compliance with laws and regulations noncompliance with which could have a material effect on the general purpose financial statements of the City. The results of our tests indicated that for the items tested, the City of Wheat Ridge, Colorado, complied with those provisions of laws and regulations noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items tested that the City of Wheat Ridge, Colorado, was not in compliance with laws or regulations noncompliance with which could have a material effect on the City's general purpose financial statements. March 20, 1989 G/Zi.untv~ J CU~ PC Certified PubliC Accountants Members ot American Institute of Certified PubliC Accountants Colorado Society of Cerllfled Public Accountants Governmental Finance Officers Association 92 = GRUENLER & = ASSOCIATES 3201 E. Third Avenue Denver, Colorado 80206 (303) 388-4181 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO NONMAJOR FINANCIAL ASSISTANCE PROGRAMS IN CIRCUMSTANCES IN WHICH THE RECIPIENT RECEIVED NO MAJOR PROGRAM FUNDING The Honorable Mayor Members of City Council City Administrator City of Wheat Ridge, Colorado We have audited the general purpose financial statements of the City of Wheat Ridge, Colorado, for the year ended December 31, 1988, and we have issued our report thereon dated March 20, 1989 . Our audit was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Orqanizations. Programs, Activities and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. - - The management of the City of Wheat Ridge, Colorado, is responsible for the City's compliance with laws and regulations. In connection with the audit referred to above, we selected and tested transactions and records from nonmajor Federal financial assistance programs to determine the City's compliance with laws and regulations noncompliance with which we believe could have a material effect on the allowability of program expenditures. - The results of our testing of transactions and records selected from nonmajor Federal financial assistance programs indicate that for the transactions and records tested for the City of Wheat Ridge, Colorado, complied with the laws and regulations referred to in the second paragraph of our report. Certified Public Accountants Members of American Institute of Certified Public Accountants Colorado Society of Certified PubliC Accountants Governmental Finance OHicers ASSOCiation 93 Our testing was more limited than would be necessary to express an opinion on whether the the City of Wheat Ridge, Colorado, administered those programs in compliance in all material respects with those laws and regulations noncompliance with which we believe could have a material effect on the allowability of programs expenditures; however, with respect to the transactions and records that were not tested by us, nothing came to our attention to indicate that the the City of Wheat Ridge, Colorado, had not complied with laws and regUlations other than those laws and regulations. March 20, 1989 G~?2Ln--- } W~Z~ f C - 94 = GRUENLER& = ASSOCIATES 3201 E. Third Avenue Denver, Colorado 80206 (303) 388-4181 REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS The Honorable Mayor Members of the City Council City Administrator City of Wheat Ridge, Colorado - We have audited the general purpose financial statements of the City of Wheat Ridge, Colorado, for the year ended December 31, 1988 and have issued our report thereon dated March 20, 1989. As part of our audit, we made a study and evaluation of the system of internal accounting control systems of the City of Wheat Ridge, Colorado, to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the u.s. General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: - - o Cash o Investments o Revenue, receivables, and receipts -governmental funds o Expenditures for goods and services and accounts payable o Payroll and related liabilities o Inventory o Property, equipment and capital expenditures o Debt and debt service expenditures o Grants and similar programs - _ Our study included all of the control categories listed above. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the entity's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. Certified Public Accountants Members of American Institute of Certified Public Accountants COlorado Society of Certified PubliC Accountants Governmental Finance Officers Association 95 The management of the City of Wheat Ridge, Colorado, is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation to the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Wheat Ridge, Colorado, taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no condition that we believe to be a material weakness. This report is intended solely for the use of management, the State Department of Highways, and the Colorado State Auditors Office, and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Wheat Ridge, Colorado, is a matter of public record. March 20, 1989 ~!~~P( ~lb - = GRUENLER & = ASSOCIATES 3201 E. Third Avenue Denver, Colorado 80206 (303) 388-4181 REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TEST REQUIRED BY THE SINGLE AUDIT ACT The Honorable Mayor Members of the City Council City Administrator City of Wheat Ridge, Colorado - We have audited the general purpose financial statements of the City of Wheat Ridge, Colorado, for the year ended December 31, 1988, and have issued our report thereon dated March 20, 1988. As part of our examination, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering Federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering Federal financial assistance programs in the following categories: - Accounting Controls - o Cash o Revenue, receivables, and receipts - governmental funds o Expenditures for goods and services and accounts payable o Property, equipment, and capital expenditures o Grants and similar programs - General Requirements o Political activity o Cash management o Civil Rights o Federal financial reports specific Requirements o Types of services o Matching level of effort o Eligibility o Reporting Certified Public Accountants --- Members of American Institute of Certified PubliC Accountants Colorado Society 0\ Certlfred Public Accountants Governmental Finance; Officers ASSOCiation 9~ The management of the City of Wheat Ridge, Colorado, is responsible for establishing and maintaining internal control systems used in administering Federal financial assistance programs. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering Federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to Federal financial assistance programs, resource use is consistent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained,and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering Federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems' to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study the first of Wheat programs under the included all of the applicable control categories listed in paragraph. During the year ended December 31, 1988, the City Ridge, Colorado, had no major Federal financial assistance and expended 99% of its total Federal financial assistance following nonmajor Federal financial assistance programs: o Revenue Sharing o State and community Highway Safety With respect to internal control systems used in administering these nonmajor Federal financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and being followed satisfactorily, and evaluating any weaknesses. Our study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the Federal financial assistance programs of the City of Wheat Ridge, Colorado. Accordingly, we do not express an opinion on the internal control systems used in administering the Federal financial assistance programs of the City of Wheat Ridge, Colorado. 98 Also, our audit, made in accordance with the standards mentioned in the first paragraph, would not necessarily disclose material weaknesses in the internal control systems for which our study and evaluation was limited to a preliminary review of the systems as discussed in the fifth paragraph of this report. However, our study and evaluation and our audit disclosed no condition that we believe to be a material weakness in relation to a Federal financial assistance program of the City of Wheat Ridge, Colorado. This report is intended solely for the use of management, the State Department of Highways, and the Colorado State Auditors Office, and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Wheat Ridge, Colorado, is a matter of public record. March 20, 1988 Cu-uuw-z. 3 (~~ PC 9'1