Loading...
HomeMy WebLinkAbout2001 ~~~_~~!lnhorst, Dragon & Cutler LLC ,'rlJIJedl'llUi. May 24, 2002 Honorable Mayor and Members of the City Council City of Wheat Ridge Wheat Ridge, Colorado We have audited the general purpose financial statements of the City of Wheat Ridge for the year ended December 31, 2001, and have Issued our report thereon dated May 24, 2002 Professional standards require that we provide you wIth the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards As stated 10 our agreement, our responsiblhty, as described by professional standards, is to plan and perform our audlt to obtam reasonable, but not absolute, assurance about whether the general purpose finanCial statements are free of matenal mIsstatement. Because of the concept of reasonable assurance and because we did not perform a detaIled exammation of all transactIOns, there is a nsk that material errors, megulantles, or illegal acts, mcludmg fraud and defalcations, lllay eXIst and r,ot be detected by us As part of our audIt, we considered the internal control ofthe City of Wheat Ridge Such consideratIOns were for the purpose of determinmg our audIt procedures and not to provide any assurance concerning such internal control Significant Accounting Policies Management has the responsibihty for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and theIr applicatIOn. The SIgnificant accountlllg policies used by the City of Wheat Ridge are described in Note 1 to the general purpose financwl statements. During the year ended December 31, 2001, the City changed its accounting policy regarding revenue recognition and capItal contributIOns, as required by new accounting standards. In addition, the police pension plan was removed from the City's financial report because the City has transferred fiduciary responsibility for the pension assets to an administrator ThIS change is in accordance with current accounting standards. No other accounting policies were adopted and the applicatIOn of existing policies was not changed during the year We noted no transactIOns entered into by the City of Wheat Ridge during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you. or transactions for which there is a lack of authontative guidance or consensus. 8400 E. Crescent Parkway. SUite 600 . Greenwood Villa~.e CO 80 III . (720) 528~430o Fax (720) 528-4307 Accounting Estimates Accountmg estimates are an integral part ofthe general purpose financial statements prepared by management and are based on management's current judgments. Certam accountmg estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ significantly from management's current Judgments. We evaluated the key factors and assumptions used to develop the estimates m determining that they are reasonable in relation to the financIal statements taken as a whole. Significant Audit Adjustments For purposes of this letter, profeSSIOnal standards define a significant audit adjustment as a proposed correction of the general purpose financial statements that, in our judgment, may not have been detected except through our auditing procedures. We proposed no audit adjustments that we believe have a sigmficant effect on the City's financial reporting process. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfactIOn, concermng a financial accounting, reporting, or audIting matter that could be sigmficant to the general purpose finanCial statements or the auditors' report. We are pleased to report that no such disagreements arose dunng the course of our audit. Consultations with Other Independent Accountants In some cases, management may deCide to consult wIth other accountants about auditing and accountmg matters, similar to obtaimng a "second opmion" on certam situations. If a consultation involves application of an accounting principle to the City'S general purpose financial statements or a determination of the type of audItors' opimon that may be expressed on those statements, our professIOnal standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations wIth other accountants. Issues Discussed Prior to Acceptance of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management prior to acceptance as the City's auditors. However, these dIscussions occurred in the normal course of our professional relationship and our responses were not a condition to our accepting the engagement. Difficulties Encountered in Performing the Audit We encountered no significant difficulties while performing our audit. However, we would like to bring the following items to the attention of management and the Council. 2 Fund Structure and Transfers Between Funds We were pleased that the City closed several funds during the year. ThIs will make the accounting process more efficient and the financial reports more concise. We would like to remmd the City that the integrity of funds is lost when many transfers are made between funds. It wIll be important to address thIS Issue dunng the next budget process. We would be happy to dISCUSS these issues in more detail at budget tIme. Grant Reimbursements We reported to you in the previous year that, for two consecutIve years, the City had not requested reimbursement for the COPS grant for the entIre year, untIl after the end of the year The process for requesting reimbursements was not changed during 2001, and the grant reimbursement for 2001 was not received by the date of our audit fieldwork, May 24, 2002. In addition, a grant for work at the Semor Center was not received because the paperwork was not completed timely We would agam like to stress the importance of grant momtoring on a timely basis. Accrued Employee Vacation Time As we have discussed previously, the CIty continues to allow employees to accrue vacation time in excess of the lImits established by CIty policy. We recommend that the polIcy be reviewed for adequacy Once approved, the policy should be followed to prevent the City from violatmg any labor laws, and to encourage employees to take vacation tIme periodically Conclusion We would like to thank Ron Patera, Lmda Stengel, and the City staff for theIr assistance and cooperation during the audit. Everyone at the City was very helpful. This information is intended solely for the use of management and the City Council of the City of Wheat Ridge, and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, ~~,~~ Swanhorst, Dragon & Cutler LLC 3 CITY OF WHEAT RIDGE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT DECEMBER 31,2001 PREPARED BY THE CITY TREASURER'S DEPARTMENT CITY OF WHEAT RIDGE, COLORADO GENERAL PURPOSE FINANCIAL STATEMENTS December 31, 2001 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Directory of Pnnclpal City Officials FINANCIAL SECTION Independent Auditors' Report GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes m Fund Balance - All Governmental Fund Types 3 Combined Statement of Revenues, Expenditures and Encumbrances - Budget and Actual - All Governmental Fund Types 4 Combmed Statement of Revenues, Expenses and Changes in Retamed Earnings - Proprietary Fund Types 5 Combmed Statement of Cash Flows - Proprietary Fund Types 6 Notes to Financial Statements 7 - 21 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES Special Revenue Funds Combining Balance Sheet 22 - 23 Combming Statement of Revenues, Expenditures and Changes in Fund Balance 24 - 25 Open Space - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 26 Police Building - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 27 Police Investigation - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 28 TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Contmued) Special Revenue Funds (Continued) Park AcqUIsitIOn - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 29 Buildmg DemolitIOn - Schedule of Revenues, ExpendItures and Encumbrances - Budget and Actual 30 Semor/Teen Center - Schedule of Revenues, Expenditures and Encumbrances- Budget and Actual 31 Mumcipal Court - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 32 Tree Planting - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 33 - Richards/Hart Improvement - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 34 Parks and Recreation Damage Deposit - Schedule of Revenues, ExpendItures and Encumbrances - Budget and Actual 35 Urban Renewal Authority - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 36 Equipment - Schedule of Revenues, ExpendItures and Encumbrances - Budget and Actual 37 ConservatIOn Trust - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 38 Computer - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 39 TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Contmued) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Contmued) Special Revenue Funds (Contmued) Baugh House - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 40 HotellMotel- Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 41 Underground Cable - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 42 Recreation Center Operatmg - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 43 Debt Service Funds Combining Balance Sheet 44 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 45 Recreation Center - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 46 Compensated Absences - Schedule of Revenues, Expenditures and Encumbrances - Budget and Actual 47 Proprietary Funds Wheat Ridge Housing Authority Enterprise Fund - Schedule of Revenues, Expenditures and Changes in Retained Earnings - Budget and Actual 48 Risk Financing Insurance Reserve Internal Service Fund - Schedule of Revenues, Expenditures and Changes in Retained Earnings - Budget and Actual 49 Fiduciary Funds Combining Statement of Changes in Assets and Liabilities - All Agency Funds 50 TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) General Fixed Assets Account Group Schedule of Changes m General Fixed Assets - by Source 51 Schedule of General Fixed Assets by FunctIon and Activity 52 SUPPLEMENTARY INFORMATION Local Highway Finance Report 53 - 54 - STATISTICAL SECTION Assessed and Estimated Actual Value of Taxable Property 55 General Governmental Revenue by Source 56 - 57 General Governmental Tax Revenue by Source 58 - 59 Property Tax Levies and Collections - General Fund 60 ComputatIOn of Legal Debt Margm 61 Certificates of Participation Coverage 62 FEDERAL FINANCIAL ASSISTANCE Independent Auditors' Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 63 Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 64 - 65 Schedule of Findings and Questioned Costs 66 TABLE OF CONTENTS (Continued) PAGE FEDERAL FINANCIAL ASSISTANCE (Continued) Independent Auditors' Report on Schedule of Expenditures of Federal Awards 67 Schedule of ExpendItures of Federal Awards 68 Notes to the Schedule of Expenditures of Federal Awards 69 CITY OF WHEAT RlDGE PRINCIP AL CITY OFFICIALS MAYOR Gretchen Cerveny CITY COUNCIL District I District 2 District 3 Jerry DitullIo Vance Edwards Dean Gokey Ralph Mancinelli DavId Schneider Odarka Figlus CITY CLERK Wanda Sang MUNICIPAL JUDGE Charles Rose CITY TREASURER Ron Patera CITY ATTORNEY Gerald Dahl CITY MANAGER Vacant DIRECTOR OF PLANNING Alan WhIte - DIRECTOR OF PARKS & RECREATION Joyce Manwaring DIRECTOR OF PUBLIC WORKS Robert Goebel CHIEF OF POLICE Jack Hurst BUDGET/FINANCE ASSISTANT Vacant PERSONNEL ASSIST ANT Karen Croom PURCHASING AGENT Linda Trimble CHIEF ACCOUNT ANT Linda Stengel District 4 Lena Rotola Harry Hanley ------- - ------- - - - -- -- - FINANCIAL SECTION ~.~ 1. t'i , Swanhorst, Dragon & Cutler LLC Honorable Mayor and Members of the City Council City of Wheat Ridge Wheat Ridge, Colorado INDEPENDENT AUDITORS' REPORT 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. 200 I, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are /Tee of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose 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, 200 I. and the results of its operations and cash flows of its proprietary fund types for the year then ended in confonnity with accounting principles generally accepted in the United States of America. As discussed in Note 8 to the financial statements, the City of Wheat Ridge, Colorado, adopted the standards of Governmental Accounting Standards Board Statement No 33 for the year ended December 31, 200 I - - Our audit was conducted for the purpose offonning an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements and schedules and supplementary infonnation 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 presented in all material respects in relation to the general purpose financial statements taken as a whole. The statistical infonnation included in the comprehensive annual financial report was not audited by us, and accordingly, we do not express an opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated May 24,2002 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. ~,~(~l-U- May 24, 2002 8400 E. Crescent Parkway. SUite 600. Greenwood Village, CO 80111. (720) 528-4306 Fax (720) 528-4307 GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements provide a financial overview of the City's operatIOns. These finanCial statements present the financial position, operating results, and cash flows, where applicable, of all funds and account groups as of December 31, 2001 - - - CITY OF WHEAT RIDGE, COLORADO COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS December 3 I 200 I GOVERNMENTAL fUND TYPES ----------- SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS ASSETS ~ Cash and Investments $ 5,913,398 $ 2,886,083 $ 10,318,930 $ 4,669,048 Accounts Receivable Property Taxes 681,93 I 230,000 Intergovernmental 448,098 169,842 44,563 Other 940,057 27,734 300,823 5 I 8,209 Due From Other Funds 947 Interest Receivable 2,81 I 172,175 4,308 Prepaid Expenses 19,650 Restricted Cash and Investments 1,482,626 Investment Property Property and Equipment Amount Available in Debt Scrviee Funds Amount to be Provided for Retirement of General Long-Term Debt TOTAL ASSETS $ 8,006,892 $ 3.3 13,659 $ 12.3 19 117 $ 5 191,565 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable $ 130,983 $ 27,461 $ 9,587 $ 153,891 Accrued Expenses 240,543 31,756 Refundable Deposits 276, I 05 Due to Other Funds 947 Claims Payable 171,273 Deferred Revenue 681,93 I 263 000 Accrued Compensated Absences 19,017 Developer Agreement Payable Loan Payable Certificates of Participation TOTAL LIABILITIES 1,519,852 323,164 9,587 153,891 ------------ ----------- ------ --------- --- FUND EQUITY Investment in General Fixed Assets Retained Earnings Fund Balance Reserved for Encumbrances 209,366 178,3 87 27,353 3,099,892 Reserved for Capital Projects 1,937,782 Reserved for Debt Service 12,282, I 77 Reserved for Emergencies 625,000 Unreserved Designated for Compensated Absences Undesignated 5,652,674 2,8 I 2, I 08 TOTAL FUND EQUITY 6,487,040 2,990,495 12,309,530 5,037,674 TOTAL LIABILITIES AND FUND EQUITY $ _~8,006,892 $ 3,313,659 $ 12,319,117 $~L565_ The accompanying notes are an integral part of the financial statements. 2 FIDUCIARY PROPRIETARY FUND ACCOUNT GROUPS ---- -- ---- fUND TYPES TYPE GENERAL GENERAL TOTALS ----- INTERNAL AGENCY FIXED LONG-TERM (tvIEMORANDUM ONLY) ENTERPRISE SERVICE FUNDS ASSETS DEBT 2001 2000 --- - $ 66,008 $ S $ $ $ 23,853 467 $ 20,527,155 911,93 I 873,939 662,503 746,702 1,786,823 1,866,340 947 15,168 179,294 19,650 1,482,626 1.523,646 L292.129 1,292, I 29 42,763,831 42,763,831 43,190,447 11,143.643 I 1,143,643 9,795,397 2,313.385 - $ I) 58~.137 $ $ $ _ 42.763.831 $ $ 84,026,844 $ ----.--- I I 143.643 8(),852.179 CITY OF WHEAT RIDGE, COLORADO COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES Y car Ended December 31. 200 I GOVERNMENTAL FUND TYPES ------ CAPITAL SPECIAL DEBT GENERAL REVENUE SERVICE PROJECTS REVENUES Taxes $ 9,766,410 $ 854,869 $ 3,098,662 $ 5, I 00,548 Licenses and Permits 761,440 Intergovernmental 1,809,495 1,367,622 10,000 Charges for Services 595,391 1,720,810 Fines and Forfeitures 703,046 Interest 273,800 148,135 667,341 122,338 Other 232.096 101,601 8,500 109,242.. TOTAL REVENUES 14141.678 4,193,037 ~ll4,501. 5,332,135 EXPENDITURES Current General Government 2,628,394 38.333 Planning and Dcvclopment 644,542 465,536 Police 5,666,026 357,384 Public Works 2,723,04 I Parks and Recreation 2,533,509 2,184,611 Other 710,983 54,650 Capital Outlay 1,014,231 79,4 70 3, I 03,803 Debt Servicc Principal 1,080,000 Interest and Fiscal Charges -- 503,889 TOTAL EXPENDITURES 14,906,495 4,060,095 1,718,009 3,1 03,803 ----- ---_.- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (764,817) 132,942 2,066,494 2,228,332 ---------- ----- OTHER FINANCING SOURCES (USES) Operating Transfers In 1,805,500 1 181,026 452,000 1,732,000 Operating Transfcrs Out (2,480,026) (1,39 I ,500) (1,799,000) TOTAL OTHER FINANCING SOURCES (USES) ~C6Jj,5~26) (210,474) 452,000 (67,000) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,439,343 ) (77,532) 2,5 I 8,494 2, I 6 I ,332 FUND BALANCE, BEGINNING 7,493,041 3,823,406 9,795,397 2,442,2 I 2 Residual Equity Transfer In (Out) 433,342 (755,379) (4,361) 434,130 FUND BALANCE, ENDING $ 6,487,040 $ 2,990,495 $ _~!l,3Q2,530 $ 5,037,674 The accompanying notes are an integral part of the financial statements. 3 TOTALS ~MORANDUM ONLY) 2001 2000 $ 18,820,489 $ 18,268,2 I I 76 I ,440 527,396 3,187,117 3,749,349 2,316,20 I 1,867,023 703,046 567,582 1,211,614 1,345,343 _ _~L~46 248,897 27,451,353 26,573,801 ------ 2,666,727 2,370,000 1,110,078 859,616 6,023,410 5,533,366 2,723,04 I 2,622,754 4,718,120 4,785,25 I 765,633 1,184,210 4, I 97,504 5,657,285 - 1,080,000 1,035,000 503,889 543,443 23,788,402 24,590,925 ------- 3,662,951 1,982,876 5,170,526 3,632,005 ~~j5,670,526) (3,632,005) ~OQ.OQ()) 3, I 62,95 I 1,982,876 23,554,056 21,571,180 1_07,732. $ 26,824,739 $ _ _lJ,554,Q56 CIn OF WHEAT RIDGE. COLORADO COMBrNED STATEMENT OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES '\' ear Ended December 11 200 I The accompanying notes are an integral part of the financial statements 4 CITY OF WI lEA T RIDGE, COLORADO COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES Year Ended Deccmber 31, 200 I WHEA T RIDGE HOUSING INSURANCE AUTHORITY RESERVE MEMORANDUM -...--- INTERNAL ONLY ------------------- ENTERPRISE SERVICE 2001 2000 ---" OPERATING REVENUES Insurance Reimbursements $ $ 110.045 $ 110,045 $ 374,812 Rental Income 15,650 15,650 Other 102,385 102,385 ~- TOTAL OPERATING REVENUES 118,035 110,045 228,080 374,812 OPERATING EXPENSES Insurance Premiums 73,600 73,600 87,758 Insurance Claims 202,276 202,276 131,048 Other 4,570 4,570 TOTAL OPERATING EXPENSES 4,570 275,876 280,446 218,806 OPERATING INCOME (LOSS) 113,465 (165,831 ) ( 52,366) 156,006 NON-OPERA TING REVENUES (EXPENSES) Interest Income 3,672 10,885 14,557 23,711 - (interest Expense) ( 1,573) _(1,573) -~ --..-- NET INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 115,564 (154,946) (39,382) 179,717 Operating Transfers In 500,000 500,000 Capital Contributions 500,000 500,000 -- - NET INCOME 1,115,564 ( 154,946) 960,618 179,717 RETAINED EARNINGS, BEGINNING 262,678 262,678 82,961 Residual Equity Transfer Out (107,732) ----.i107,732) --------- RETAINED EARNINGS, ENDING $ _I,115,5M. $ $ _LI 15,564 $ _.162,678 The accompanying notes are an integral part of the financial statements. 5 CITY Of WHEAT RIDGE, COLORADO COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES Year Ended December 31 2001 Increase (Decrease) in Cash and Cash Equivalents WHEAT RJDGE HOUSING INSURANCE AUTHORITY RESERVE MEMORANDUM INTERNAL ONLY ---- ENTERPRISE SERVICE 2001 2000 .u - -- ----- -.- CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Other Funds $ $ 110,045 $ 110,045 $ 374,812 Cash Received from Others I18,035 118,035 Cash Paid to Suppliers (291) _~~2~8) (376,579) (220,860) Net Cash Provided (Used) by Operating Activities 117,744 (266,243 ) ( 148,499) 153,952 CASH FLOWS FROM NONCAPIT AL FrNANCING ACTIVITIES Transfers in from Other Funds 500,000 500,000 Transfer out to Other Funds (107,732) (107,732) Capital Contributions - Grant 500,000 500,000 -------- Net Cash Provided (Used) by Noncapital Financing Activities 1,000,000 (107,732) 892.268 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Issuance of Long-Tern] Debt 238,294 238,294 Mortgage Interest Payments ( 1,573) (1,573 ) Net Cash Provided (Used) by Capital and Related Financing Activities 236.721 236,721 -------- - CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 3,672 10,885 14,557 23,71 I Purchase of Investment Property (1,292,129) (1,292,129) Net Cash Provided (Used) by InvesIing Activities (1,288.457) 10,885 ..Jl,:m,~22) ----- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 66,008 (363,090) (297,082) 177,663 CASH AND CASH EQUIVALENTS, Beginning ._~_]~l,OJ_O 363,090 185,427 CASH AND CASH EQUIVALENTS, Ending $ 66.008 $ $ 66,008 $ 363,090 .- RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 113.465 $ (165,831) $ (52,366) $ 156,006 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Changes in Assets and Liabilities Accounts Payable 4.279 (412) 3,867 (2,054) Claims Payable ~ (100,000) _(190,000) Net Cash Provided (Used) by Operating Activities $ 117.744 $ (266,2431 $ (148,499) $ 153,952 The accompanying notes arc an integral part of the financial statements. 6 NOTE 1: - - - - CITY OF WHEAT RlDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Wheat Ridge, Colorado was incorporated in August, 1969, and became a home rule city m 1976 as defined by Colorado Revised Statutes. The City IS governed by a Mayor and eight-member Council elected by the residents. The accountmg policies of the City of Wheat Ridge, Colorado (the City) conform to generally accepted accountmg pnnclples as applicable to governments. The following IS a summary of the more significant policies: REPORTING ENTITY In accordance With governmental accounting standards, the City has considered the possibility of mcluslOn of additIOnal entitles in ItS general purpose financIal statements. The definition of the reportmg entIty IS based primarily on financial accountability The City is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizatIOns ifCity officials appomt a voting majority of the orgamzation's govermng body and either it is able to Impose Its will on that organizatIon or there IS a potential for the orgamzatlOn to provide speCific financial benefits to, or to Impose speCIfic financial burdens on, the City The CIty may also be financially accountable for orgamzations that are fiscally dependent upon it. Blended Component Units Wheat Ridge Urban Renewal Authority - The City includes the Wheat Ridge Urban Renewal Authority (the Authority) within its reportmg entIty The Authority was created to redevelop or rehabilitate certain blighted areas of the City. The Authonty Board members are appomted by the City Mayor and CouncIL City Council approval is required for the Authonty's budget. The financial information of the Authority is blended mto the City's financial statements as a special revenue fund. Wheat RIdge Housmg Authority - The City includes the Wheat Ridge Housing Authority (the Housing Authority) within its reporting entity. The Housing Authority was created to provide low income and first time home buyer assistance to residents within City boundaries. The Housing Authority Board of Commissioners are appointed by the Mayer with approval of the City Council. The financial information of the Housmg Authority is blended mto the City's financial statements as an enterprise fund. 7 NOTE 1: CITY OF WHEAT RlDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) FUNDS AND ACCOUNT GROUPS 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 operatlOns of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabIlitles, fund equity, revenues, and expenditures, or expenses, as appropnate. Government resources are allocated to, and accounted for in individual funds, based upon the purposes for which they are to be spent and the means by which spendmg actIvities are controlled. The vanous funds are grouped in the finanCial statements m thiS report, into fund types and broad fund categories as follows: GOVERNMENTAL FUNDS All governmental funds are accounted for on a spending or "financial flow" measurement focus. ThIS means that only current assets and current habilitles are generally included on the balance sheet. Their reported fund balance (net current assets) is considered a measure of "available spendable resources", Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financmg uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "aVailable spendable resources" during a penod. General Fund -- The 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. Special Revenue Funds -- Special Revenue Funds are used to account for the collection and disbursement of specific revenue sources. Debt Service Funds -- Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long-term obligation principal, interest, and related costs. Capital Projects Funds -- Capital Projects Funds are used to account for the acquisition or construction of property and facilities. 8 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) FUNDS AND ACCOUNT GROUPS (Contmued) PROPRIETARY FUNDS Enterprise Fund - The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to a private business where the intent of the governing body IS that costs (expenses, including depreciation) of providmg goods or services to the general public on a continumg basIs be financed or recovered primarily through user charges. Internal Service Fund -- The Internal Service Fund accounts for goods and services proVided to other departments or funds of the City on a cost-reimbursement basis. FIDUCIARY FUNDS Trust and Agency Funds -- Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private orgamzatlOns, other governments, and/or other funds. ACCOUNT GROUPS General Fixed Asset Account Group -- Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Asset Account Group, rather than in the governmental funds, No depreciation has been provided on general fixed assets. General Long-Term Debt Account Group -- Long-term liabilities expected to be financed from governmental funds are accounted for m the General Long-Term Debt Account Group, not in the governmental funds. The account groups are not "funds" They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and 9 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING (Continued) current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e" expenditures and other financing uses) in net current assets, The proprietary funds are accounted for on a flow of economIC resources measurement focus. With this measurement focus, all assets and all lIabilitIes assocIated with the operation of these funds are included on the balance sheet. Fund equity for the proprietary fund (i e., net total assets) is segregated Into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual baSIS of accounting is used by all governmental funds and the agency funds. Under the modified accrual basIs of accounting, revenues are recogmzed when they become measurable and available as net current assets. Available means collectible within the current period or expected to be collected soon enough thereafter to be used to pay liabilitieS of the current period, not to exceed sixty days. Expenditures are generally recognized when the related fund lIabilIty is Incurred. The accountmg and reportmg treatment applIed to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. Those revenues susceptible to accrual are sales taxes, property taxes, franchIse taxes, interest, and grants. Fines and permIt revenues are not susceptible to accrual as they generally are not measurable until received in cash. The accrual basis of accounting is used by all proprietary fund types. Under this method, revenues are recognized when earned and expenses are recognized at the time liabilities are incurred. For its proprietary fund types, the City has elected not to apply Financial Accounting Standards Board (F ASB) statements and interpretations issued after November 30, 1989. Agency Funds are custodial in nature and do not involve measurement of the results of operations. 10 NOTE 1: - CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING (Continued) Deferred revenues anse when a potential revenue does not meet both the "measurable" and "available" cnteria for recognitIOn in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, as when grant momes are received pnor to the mcurrence of qualifymg expendItures. In subsequent periods, when both revenue recognitIOn critena are met, or when the City has a legal claim to the resources, the lIability for deferred revenue is removed from the balance sheet and revenue is recognized. BUDGETS The City follows these procedures m establIshmg the budgetary data reflected in the financial statements: o In September, the City AdmmistratlOn submIts to the City Council a proposed operating budget for the fiscal year commencing the followmg January L The operating budget mcludes proposed expenditures and the means offinancmg them. o PublIc heanngs are conducted to obtam taxpayer comments. o Prior to December 31, the budget IS legally enacted through passage of an ordmance. o Any budget revisIOns that alter the total expenditures of any fund must be approved by the City Council. o Budgets are legally adopted for all funds of the City except the Agency Funds. Budgets for the General, Special Revenue, and Capital Projects Funds are adopted on a non-GAAP basis using the encumbrance method. Budgetary comparisons presented for the Debt Service and Internal Service Funds are presented on a basis consistent with generally accepted accounting pnnciples (GAAP). Budgetary comparisons presented for the Enterprise Fund is presented on a non-GAAP budgetary basis, Loan proceeds are recognized as revenue for budget purposes. Capital outlay is budgeted as an expenditure and depreciation is not budgeted. o Budgeted amounts in the financial statements are as originally adopted or as amended by the City Council. All appropriations lapse at year end. Colorado governments may not legally exceed budgeted appropnations by fund. II NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) CASH AND INVESTMENTS Cash eqUivalents include investments with onginal matunties of three months or less. Investments are recorded at fair value. INTERFUND RECEIVABLES/PA YABLES During the course of operations, numerous transactiOns occur between individual funds. The resulting receivables and payables are classified on the balance sheet as "due from other funds" and "due to other funds" because they are short-term in nature Noncurrent portiOns oflong-term interfund loan receivables are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation. FIXED ASSETS Property and eqUipment acquisitions made by the governmental funds are accounted for as expenditures ofthe fund, and are then capitalized m the general fixed assets account group All purchased property and equipment are valued at cost, while donated assets are valued at their estimated fair market value as of the date received as a donation. The City capitalizes all assets valued at $5,000 or greater with a life in excess of one year. - Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are Immovable and of value only to the City. No depreciation is provided on the general fixed assets, COMPENSATED ABSENCES Employees of the City are allowed to accumulate unused vacation and sick time up to a maximum based on years of service. Upon termination of employment from the City, an employee will be compensated for all accrued vacation time at their current pay rate. Employees hired prior to February 12,1990 will be compensated for accrued sick time exceeding 60 days at one-half their current rate of pay 12 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) COMPENSATED ABSENCES (Continued) Accumulated unpaid vacatIOn and Sick pay is accrued when earned. In the governmental fund types, amounts expected to be paid from available resources is recorded as a liability of the individual fund. Accumulated pay not expected to be paid from available resources is reported m the General Long-Term Debt Account Group, LONG-TERM OBLIGATIONS Long-term debt is recogmzed as a liability of a governmental fund when due, or when resources have been accumulated m the debt service fund for payment early in the following year For other long-term obligations, only that portion expected to be financed from expendable financial resources IS reported as a fund liability of a governmental fund. The remaining portIOn of such obligations is reported m the General Long-Term Debt Account Group Long-term liabilities expected to be financed from proprietary fund operations are accounted for m that fund. FUND EQUITY Reserves represent those portions of fund eqUIty not appropnable for expenditure or legally segregated for a specific future use. DeSignated fund balances represent tentative plans for future use of financial resources. PROPERTY TAXES Property taxes are levied on November 1 and attach as an enforceable lien on property on January 1. Taxes are payable in full on Apnl30 or in two installments on February 28 and June 15. The County Treasurer's office collects property taxes and remits to the City on a monthly basis. Smce property tax revenues are collected in arrears during the succeedmg year, a receivable and correspondmg deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. CONTRABAND FORFEITURES The Colorado Contraband Forfeiture Act allows law enforcement agencies to retain proceeds from the seizure of contraband. These transactions are recorded m the Police Investigation Special Revenue Fund. 13 NOTE 1: NOTE 2: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) COMPARATIVE DATA ComparatIve total data for the prior year has been presented in the accompanying financial statements in order to provide an understandmg of changes in the City's financial position and operatIOns. However, comparative (i.e., presentation of prior year totals by fund type) data has not been presented in each of the statements smce theIr inclusIOn would make the statements unduly complex and difficult to read. Certam prior year amounts have been reclassified where appropriate to conform with the current year financial statement presentatIon. TOTAL COLUMNS ON COMBINED STATEMENTS Total columns on the Combined Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate finanCial analysIs. Data in these columns do not present financial position, results of operatIOns, or cash flows in conformity with generally accepted accounting principles. Neither IS such data comparable to a consolidation. Interfund elImmations have not been made m the aggregatIon of this data. DEPOSITS AND INVESTMENTS A summary of depOSits and investments as of December 31, 2001 follows. Petty Cash Cash Deposits Investments $ 2,275 7,571,305 17.762.513 Total $ 25,336,093 The above amounts are classIfied m the combined balance sheets as follows: Cash and Investments Restricted Cash and Investments $ 23,853,467 1,482.626 Total $ 25,336,093 14 NOTE 2: - CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31,2001 DEPOSITS AND INVESTMENTS (Continued) Cash Deposits The Colorado Public Deposit Protection Act, (PDP A) requires that all umts of local government deposit cash in eligible public depositones. Eligibility is determined by state regulatIOns. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determmed by the PDP A. The finanCial institutIOn is allowed to create a smgle collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group The market value ofthe collateral must be at least equal to 102% of the uninsured depOSIts. Deposits are categorized to give an indicatIOn of risk assumed by the government at the end of the year CategOlY 1 mcludes deposits that are insured, CategOlY 2 includes collateralized depOSIts with securities held by the pledging instItutIOn's trust department or agent in the City's name, and Category 3 mcludes uncollateralized, uninsured deposits. At December 31, 2001, the City's cash depOSits had a carrymg amount of$7,571,305, and a correspondmg bank balance as follows' Insured (Category 1) DepOSits Collateralized in Single Institution Pools (Category 2) $ 300,000 7,617.110 Total Cash DepOSits $ 7.917.110 Investments Colorado statutes specifY which instruments units ofIocal government may invest, which include, o Obligations of the United States and certain US. government agency securities o Certain international agency secunties o General obligation and revenue bonds ofU.S local government entities o Bankers' acceptances of certam banks o Commercial paper o Local government mvestment pools o Written repurchase agreements collateralized by certain authorized securities o Certain money market funds o Guaranteed investment contracts 15 NOTE 2: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) The City's Illvestments are categorized below to give an indication ofthe level of security assumed at year end. Category J includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name, Category 2 includes uninsured and unregistered investments for which the securIties are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securIties are held by the counterparty's trust department or by its agent, but not III the CIty's name. U.S. Agency SecurIties Repurchase Agreements, collateralized by securities with a fair value of $1 ,590, 149 Fair Value (Category I) $ 6,313,432 1,482,000 Total $ 7,795.432 At December 31, 2001, the City had Illvested $2,701,133 and $4,920,068, respectively, III the Colorado Government Liquid Asset Trust (Colotrust), and the Colorado Surplus Asset Fund Trust (CSAFE), investment vehicles established for local government entities in Colorado to pool surplus funds. The Trusts are registered wIth the Colorado Securities Commissioner as reqUired by State statute. The Trusts operate similarly to a money market fund and each share is equal III value to $1.00. Investments of the Trusts include U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U S. Treasury securities. A designated custodial bank provides safekeeping and depository services to the Trusts in connection With the direct investment and withdrawal functions of the Trusts. Substantially all securities owned by the Trusts are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodIan's internal records identify the investments owned by the Trusts, In addition, the City had invested $2,345,880 in money market accounts. These investments are not categorized since the underlying securities cannot be determined. Restricted Cash and Investments Cash and investments of $1,482,626, representing the reserve required by the 1998 certificates of participation, have been restricted in the Recreation Center Debt Service Fund, 16 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 3 I, 2001 NOTE 3: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group IS as follows Balance Balance 12/31/00 Additions Deletions 12/31/01 Land $ 10,559,848 $ 142,000 $ $ 10,701,848 Buildings 17,764,117 17,764,117 Streets and Improvements 9,216,620 9,216,620 Equipment 4,837,334 532,192 288,280 5,08 1,246 Total General Fixed Assets $ 42.377.919 $ 674.192 $ 288.280 $ 42.763.831 The City's fixed asset capitalization policy was increased to $5,000 during the year ending December 31, 200 I. As a result, beginmng balances for the general fixed asset account group have been restated by $812,529 NOTE 4: LONG-TERM DEBT General Long-Term Debt Account Group Following is a summary of General Long-Term Debt Account Group transactions for the year ended December 31, 200 I. Balance Balance 12/31/00 Additions Payments 12/31/01 - Certificates of Participation $11,470,000 $ $ 1,080,000 $ 10,390,000 Compensated Absences 586,282 132,361 718,643 Developer Agreement 52,500 17.500 35,000 Total $ 12.108.782 $ 132.361 $ 1.097.500 $ 11.143.643 Certificates of Participation The City issued $14,820,000 Certificates of Participation, Series 1998, to finance the construction of a recreation facility. Principal payments are due annually on December 15, and interest payments are due semi-annually on June 15 and December 15, through 2008, 17 NOTE 4: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31,2001 LONG-TERM DEBT (Continued) Certificates of Participation (Continued) Interest accrues at rates ranglllg from 3.55% to 4.6%. Annual debt service requirements for the certificates of participation are as follows. Year Ended December 3 L 2002 2003 2004 2005 2006 Thereafter Principal $ 1,120,000 1,165,000 1,215,000 1,270,000 1,320,000 4.300,000 Total $ 1,574,617 1,573,137 1,574,207 1,577,570 1,572,960 4,626,280 Interest $ 454,617 408,137 359,207 307,570 252,960 326,280 Total Debt Service ReqUirements $ 10,390.000 $ 2.108.771 $ 12.498.771 Developer Agreement On January 13,1997, the Urban Renewal Authority agreed to compensate the Wheat Ridge Marketplace for certain costs incurred in the development of the project. The full amount of the agreement, $175,000, is due and payable withlll 10 years. At December 31, 2001, the CIty had paid $140,000 under this agreement. No interest accrues on the obligatIon. Enterprise Fund Following is a summary of Enterprise Fund (Housing Authority) transactIOns for the year ended December 31, 2001 Balance 12/31/00 Balance 12/31/01 Additions Pavments Commercial Loan $ $ 238,294 $ $ 238,294 Dunng 2001, the Housing Authority obtained a commercial loan in the amount of $1,144,000 to assist with the purchase and rehabilitation of the investment property, The Housing Authority may request draws on the loan through the maturity date. Principal outstanding is due in one lump sum on the maturity date of October 22, 2002. Interest payments are due monthly, beginning November 1,2001 Interest accrues at variable rates starting at 4.36%. As of December 31,2001, the Housing Authority had drawn $238,294 on the loan. 18 NOTE 5: - CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 RISK MANAGEMENT The City is exposed to variOUS risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has agreed to self-insure claims for general liability, automobile liability, law enforcement liability, and public officials error and omissions liability to a maximum of $150,000 per occurrence. Self-insurance actiVIties were accounted for in the Internal Service Fund in 2001 This fund was closed and the related assets, liabilities and eqUity were transferred to the General Fund at December 31, 2001 Changes in claIms payable were as follows Claims Payable, January 1 Incurred but Unreported Claims and Adjustments Claims Paid 2001 $ 100,000 273,549 (202,276) 2000 $ 100,000 131,048 (131.048) Claims Payable, December 31 $ 171,273 $ 100,000 For excess liability, property and workers compensation claims, the City is involved with the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provision of24-1 0-115,5, Colorado Revised Statutes (1982 Replacement Volume) and Colorado Constitution, Article XIV, Section 18(2) The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members to prevent and reduce losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the mtent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA agamst stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All mcome and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity and the City does not approve budgets nor does it have ability to significantly affect the operations of the unit. The City carries commerCial insurance for other risks of loss, including employee health msurance. 19 NOTE 6: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2001 RETIREMENT COMMITMENTS Police Pension Plan The City contributes to a single employer defined contribution money purchase pension plan on behalf of sworn police officers. Employees are required to contribute 10% of their compensatIOn to the Plan, and the City contributes 10%. The contribution requirements of Plan members and the City are established and may be amended by the City Council. Employees may also make voluntary contributIOns to the Plan but may not contribute in excess of 15% of their compensation to the Plan. During the year ended December 31, 2001, the City and employees made contributions to the Plan of$308,124 and $370,706, respectIvely The City made all reqUired contributIOns to the Plan. Employees become vested in City contributions to the Plan at 40% after 4 years of service; 45% after 5 years, 50% after 6 years, and an additional 10% each year thereafter All of the Plan mvestments at December 31,2001 of $1 0,600, 178 are managed by Charles Schwab Department Head Pension Plan City department heads participate in a multiple-employer defined contribution pension plan after one year of employment. Department heads are required to contribute 4% of their compensatIOn to the Plan and the City contributes 5%. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2001, the City and employees made contributions to the Plan of $14,256 and $11,404, respectively. The City made all required contributions to the Plan. Employees become vested in all contributIOns to the Plan Immediately. All of the Plan investments are managed by The International City Managers' Association (lCMA), Employee Pension Plan The City contributes to a multiple-employer defined contribution pension plan on behalf of all employees, except police officers and department heads, after one year of employment. Employees are required to contribute 4% of their compensation to the Plan, and the City contributes 4%. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31,2001, the City and employees made contributions to the Plan of$181 ,692 and $181 ,692, respectIvely The City made all required contributions to the Plan. 20 NOTE 6: NOTE 7: - - NOTE 8: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 200 I RETIREMENT COMMITMENTS (Continued) Employee Pension Plan (Continued) Employees become vested m City contributIOns to the Plan at 20% annually. All of the Plan Investments are managed by The Colorado County Officials and Employees Retirement Association (CCOERA) COMMITMENTS AND CONTINGENCIES Tabor Amendment -- Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, includmg revenue ralsmg, spending abilities, and other specific requirements of state and local governments. The Amendment requires, with certain exceptions, advance voter approval for any new tax, tax rate Increase, mill levy above that for the prior year, extension of an expiring tax, or tax policy change directly causing a net tax revenue gain to the City. Revenue m excess of the fiscal year spendmg limit must be refunded in the next fiscal year unless voters approve retentIOn of such revenue The City's management believes it is in compliance with the provisions of the Amendment. However, the Amendment is complex and subject to interpretation. Many of its provisions may require judicial interpretation. The City has established an emergency reserve, representmg 3% of qualifyIng expenditures, as reqUired by the Amendment. At December 31,200 I, the emergency reserve of$625,000 was recorded in the General Fund. Litigation -- The City is involved in various lawsuits. The outcome ofthis litigatIOn cannot be determined at this tlme. Commitments -- The Urban Renewal Authority has entered into an agreement With Wheat Ridge Marketplace to pay to the developer the incremental property tax revenue derived from the property through December 31, 2006, not exceedIng $750,000. At December 31, 2001, the City had paid $718,587 under this agreement. CHANGE IN ACCOUNTING PRINCIPLE F or the year ended December 31, 200 I, the City adopted the standards of Governmental Accounting Standards Board Statement No 33 Accounting and Financial Reporting for Nonexchange Transactions, which requires capital contributIOns in proprietary fund types to be recorded as revenue. 21 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES SPECIAL REVENUE FUNDS Spec tal Revenue Funds account forthe proceeds of specIfic revenue sources that are legally restricted to expenditures for specific purposes. Open Space Fund - the City, along with Jefferson County and adjacent Colorado municipalities, have agreed to jointly develop "Open Space" The cost of such development is funded by a County sales tax which is shared with the City under a deferred formula. Police Building Fund - accounts for Y2 cent sales tax collected for the construction of the police department building addition This fund was closed dunng the year ending December 31, 200 I Police Investigation Fund - accounts for assets seized by the City's Police Department. Park Acquisition Fund - accounts for revenue received and designated for use in the acquisition of additional parks and related improvements. Building Demolition Fund - is a revolving fund that charges property owners for CIty expenses incurred in the demolition of buildings. This fund was closed during the year ending December 31,200 I Senior/Teen Center Fund - accounts for contributions and related expenditures made to the Wheat Ridge Community Center Municipal Court Fund - is used for equipment maintenance, office furniture, victim services and miscellaneous court and probation expenses. Tree Planting Fund - is used for two types of tree planting programs, street trees and park trees. This fund was closed dunng the year ending December 31, 200 I - RichardsIHart Improvement Fund - expenditures It1 this fund will be used to upgrade and Improve the Richards/Hart Estate. - Parks and Recreation Damage Deposit Fund - monies in this fund are damage deposits that are paid to the Parks and Recreation Department for rental of park pavilions, park shelters and facility rentals. This fund was closed during the year ending December 31, 2001 Wheat Ridge Urban Renewal Authority - accounts for revenue received and designated for economic development by the Wheat Ridge Urban Renewal Authority Board of Commissioners. Equipment Fund - has been established to purchase and lease vehicles and equipment. Conservation Trust Fund - accounts for funds received and restricted as to use in the acquisition, development and maintenance of park and recreation sites pursuant to Colorado Revised Statutes. Computer Fund - has been established to purchase and lease computers. Baugh House Fund - accounts for transactions related to the historic Baugh House. Hotel/Motel Fund - accounts for 5% lodgers tax revenue and related expenditures. Underground Cable Fund - accounts for amounts budgeted for burying utility cable. This fund was closed during the year ending December 31, 200 I Recreation Center Operating Fund - accounts for recreation center revenue and recreatIOn program expenditures. CITY OF WHEAT RIDGE. COLORADO SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 3 I 200 I OPEN POLICE POLICE PARK SPACE BUILDING rNVESTIGA TION ACQUISITION ASSETS Cash and Investments $ 275.669 $ $ 156,529 $ t2,180 Receivables Property Taxes Intergovernmental 169,842 Other TOTAL ASSETS $ 445,511 $ n $ 156~5~.'L $ 12,180 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable $ $ $ $ Accrued Expenses Due to Other Funds Deferred Revenue TOTAL LIAI3ILITIES FUND EQUITY Fund Balances Reserved for Encumbrances 12.210 Unreserved 433,30 I 156,52J 12.180 ----- TOTAL FUND EQUITY 445.51 I 156,529 __..-'2,180 TOTAL LIABILITIES AND FUND EQUITY $ 445.511 $ $ . 156.529 $ 12,180 (Continued) See the accompanying Independent Auditors' Report. 22 PARKS AND RICHARDS! RECREATION BUILDING SENIORfTEEN MUNICtPAL TREE HART DAMAGE DEMOLITION CENTER COURT PLANTING IMPROVEMENT DEPOSIT ~ - ---..- - - $ $ 51.923 $ 78.610 $ $ 7.362 $ $ $ u5I,923 $ 78,610 $ $ _._7,362 $ ---------- $ $ $ 7466 $ $ $ 947 947 7.466 21,429 4.800 29.547 71 144 2.562 50,976 71.144 7,362 - $ $ ~1,923~ $ 78,6 \ 0_ $ $ 7,362 $ -- CITY OF WHEAT RIDGE. COLORADO SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 200 I (Continued) See the accompanying Independent Auditors' Report. 23 RECREATION BAUGH HOTEL! UNDERGROUND CENTER TOTALS HOUSE MOTEL CABLE OPERATING 2001 2000 $ 46.512 $ 874.602 $ $ 482.53 I $ 2.886.083 $ 3.514.959 230.000 230000 169.842 316,755 _.12,.734 u }7,734 42,760 $ 46,512 $ 902)36 $ $ 482,531 $ 3,313,659 $ 4,104,474 -- $ $ $ $ 5,302 $ 27 461 $ 16.344 6.820 24936 3 I ,756 20.081 947 14.643 }3,000 263.000 230.000 33.000 6.820 30.238 323.I~ 281 068 7,500 178.387 429,372 6.012 895,516 -- 452,293 2.812, I 08 ~4,034 13,512 895.516 452,293 n. 2,990,495 3.823,406 - $ 46,512 $ 902,336 $ $ _ 482.531 $ 30313,659 $ 4.104,474 CITY OF WHEAT RIDGE, COLORADO SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE Year Endcd Dccember 31, 200 I (Continued) See the accompanying Independent Auditors' Report. 24 PARhS AND RICHARDS/ RECREATION BUILDING SENIOR/TEEN MUNICIPAL TREE HART DAMAGE DEMOLITION CENTER COURT PLANTING IMPROVEMENT DEPOSIT ~ $ $ $ $ $ $ 1000 42,680 13,590 788 1,32 I 2,728 2,058 754 1,136 18,991 6,281 388 12,43_2 788 20,312 45,408 9.339 14,732 13,568 --- CITY OF WHEAT RIDGE, COLORADO ALL SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE YCJr Ended December 31, 2001 (Continucd) URBAN RENEWAL CONSERVATION AUTHORITY EQUIPMENT TRUST COMPUTER --- REVENUES Taxes $ 356,450 $ $ $ Intergovernmental 351,046 Charges for Services Interest 18.103 9,894 5,038 15, 115 Other 56.276 TOTAL REVENUES 374.553 66,170 356,084 15,115 EXPENDITURES Current General Government Planning and Development 465.536 Police Parks and Recreation 145,998 Capital Outlay 543,562 223.261 TOTAL EXPENDITURES 465.536 543.562 145,998 223,26 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (90.983) (477,392) 210,086 (208,146) OTHER FINANCING SOURCES (USES) Operating Transfers In 393,000 13,195 405,000 Operating Transfers Out (280,000) --------------..- J70,OOO) TOTAL OTHER FINANCING SOURCES (USES) (280.QgO) 393,000 (56,805) 405,000 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (370,983) (84,392) 153,281 196,854 FUND BALANCE, BEGINNING 530,461 202,993 106,079 15 J,I 79 Residual Equit} Transfer Out FUND BALANCE, ENDING $ 159,47~_ $ 118,601 $ - 259,360 $ _.148,033 See the accompanying Independent Auditors' Report. 25 RECREA nON BAUGH HOTEL! UNDERGROUND CENTER TOTALS HOUSE MOTEL CABLE OPERA TING 2001 2000 ---- $ $ 498,419 $ $ $ 854,869 $ 866,449 15,080 8,894 1.367,622 1,882,564 1,659,536 1,720,810 1,4 I 8,702 678 30.615 18,128 19,159 148,135 248.3 17 833 101,601 106,156 15.758 537,928 18.128 1.679.528 4,193,037 4.522.188 . 1,699 38,333 44,406 465,536 221,064 324,844 357,384 188,712 1,638,157 2,184,611 2,370,518 136.978 1,014,231 625, 110 ~- 1,699 324,844 136,978 1.638.157 4.060,095 3,449,8 I 0 14,059 213,084 (118,850) 41.371 132,942 --.1()72,3 7 8 200,000 1,181,026 1,233,145 - (218,000) (1,39 ~,~Q()) (1,279,860) _(218,000) 200,000 (210,474) ----.146,715) - 14,059 (4,916) 81 150 41,371 (77,532) 1,025,663 (547) 900,432 352,980 410,922 3.823,406 2,797,743 ~- (434,130) -. (755,379) $ __lhSll. $ 895,51(j $ $ 452,29.L $ n 2,990,495 $ 3,823,406 CITY OF WHEAT RJDGE, COLORADO OPEN SPACE SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended Dccember 31, 200 I BUDGET REVENUES Intergovernmental Interest Other $ 930.000 TOTAL REVENUES 930,000 EXPENDITURES Current Parks and Recreation 389,300 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 540,700 OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out 157,300 (823.000) TOTAL OTHER FINANCING SOURCES (USES) (665,700) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (125,000) ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year Current Year TOTAL ADJUSTMENTS EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (GAAP BASIS) 2001 ACTUAL $ 971,104 $ 5,160 5,600 981,864 308,166 673.698 157,300 (823,000) (665,700) 7,998 (25,147) 12,210 (12,937) $ (4,939) 26 See the accompanying Independent Auditors' Report. V ARIANCE- FAVORABLE (UNFAVORABLE) 41,1 04 5,160 5,600 51,864 81,1 34 132,998 $ 132,998 2000 -....- ACTUAL $ 1,404,653 67,033 6,400 1,478,086 1,033,048, 445,038 -.- - 67,000 (975,3601 (908,360) ( 463,322) - (19,850) 25,147 5,297 $ ( 458,025) CITY Of WHEAT RIDGE, COLORADO POLICE BUILDING SCHEDULE OF REVENUES, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended Dcccmber 3!' 2001 - - See the accompanying Independent Auditors' Report. 27 CITY OF WHEAT RIDGE, COLORADO POLICE INVESTIGATION SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended December 31, 2001 TOTAL REVENUES 2001 ~~. V AR1ANCE- FAVORABLE 2000 ------ BUDGET ACTUAL (UNFA VORABLE) ACTUAL ---- $ 5,000 $ 5,813 $ 813 $ 8,150 25,000 800 (24,200) 22,549 30,000 6,613 (2~387J _30,699 REVENUES Interest Other EXPENDITURES Current Police __90,000 32,54Q. 57,460 .12, ?.52 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (60,00Q2 $ (25,9271 $ 34,073 $ _ 10,942 ----~ - - - See the accompanying Independent Auditors' Report. 28 CITY OF WHEAT RIDGE, COLORADO PARK ACOUISITION SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended December 31, 2001 2001 -. __m_ V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNF A VORABLE) ACTUAL _. REVENUES Charges for Services $ 1,000 $ 5,004 $ 4.004 $ Interest 250 410 160 396 TOTAL REVENUES 1,250 5,4 14 4,164 396 EXPENDITURES Current Parks and Recreation (198) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 1,250 5,414 $ 4164 594 ,-- ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Y car (198) Current Year TOTAL ADJUSTMENTS (198) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ 5,414 $ 396 --- See the accompanying Independent Auditors' Rcport. 29 CITY OF WHEAT RIDGE, COLORADO BUILDING DEMOLITION SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended December 31, 2001 REVENUES Interest 2001 ---------- V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (lJ},jF ~\TOR^I3.LE) ACTUAL $ 1,000 $ 788 $ (212) $ 1,189 EXPENDITURES Current Planning and Development 2,000 2.000 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 11,000) $ 788 $ I 788 $ ,1.189 See the accompanying Independent Auditors' Report. 30 CITY OF WHEAT RIDGE, COLORADO SENIOR/TEEN CENTER SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended December 31, 200 I 2001 BUDGET ACTUAL REVENUES lnterest Other 1,000 $ 18,500 1,321 18,991 $ TOTAL REVENUES 19,500 20,312 EXPENDITURES Current Parks and Recreation 47,000 28,489 ------ EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (27,500) (8,177) OTHER FINANCING SOURCES (USES) Operating Transfers In EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (27,500) S (8,177) $ ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year Current Year 21,429 TOTAL ADJUSTMENTS 21,429 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ 13,252 See the accompanying Independent Auditors' Report. 31 V ARIANCE- FA VORABLE (lJNFA VQRABLE) $ 321 491 812 18,511 19,323 -~ 19,323 2000 ACTUAL $ 1,211 ~8,949 __~_20,160 25,261 n (5,121) 22,31 I $ 17,210 $ 17,210 CITY OF WHEAT RIDGE, COLORADO MUNICIPAL COURT SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended December 31, 200 I 2001 ---- V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------- REVENUES Charges for Services $ 45,500 $ 42,680 $ (2,820) $ 39,993 Interest 3,000 2,728 (272) 3,950 TOTAL REVENUES 48.500 45,408 . (3,09}) 43,943 EXPENDITURES Current General Government 64,1 00 36.634 27.466 44,306 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (15,60.2) 8,774 $ 24,374 (363) - ----.--------- ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (100) Current Year TOTAL ADJUSTMENTS _.---.i1Q0) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ 8,774 $ -_..HQ3l See the accompanying Independent Auditors' Report. 32 CITY OF WHEAT RIDGE, COLORADO TREE PLANTING SCHEDULE OF REVENUES, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Endcd December 31, 200 I 2001 V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Intergovernmental $ $ 1,000 $ 1,000 $ 2,166 Interest 4,000 2,058 (I,942) 4,244 Other 4,500 6,281 ~12~!.. n.. 6,954 TOTAL REVENUES 8,500 9,339 839 13,364 EXPENDITURES Current Parks and Recreation 77,884 26,793 51,091 69,919 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (69,384) JJ7-,45~) 51,930 (56,555) OTHER FINANCING SOURCES Operating Transfcrs In 10,000 10,000 41,500 Operating Transfers Out (500) 500 (10,000) TOTAL OTHER FINANCING SOURCES (USES) 10,000 9,500 500 31,500 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ (59,384) $ l7,954) $ ~~~_5L430 $ (25,055) See the accompanying Independent Auditors' Report. 33 CITY OF WHEAT RIDGE, COLORADO RICHARDSIHART IMPROVEMENT SCHEDULE OF REVENUES, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Endcd December 3 I 200 I 2001 -- -- ----.-- V ARIANCE- FAVORABLE 2000 --.-.-- BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES --.-- Intergovernmental $ 53,550 $ $ (53.550) $ 1,500 15,640 13,590 Interest 11,000 754 (10,246) 1,023 Other 388 388 13,600 TOTAL REVENUES 80,190 14,732 ~5A58) 16,123 EXPENDITURES Current Parks and Recreation 63.000 40,138 22.862 5,832 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 17.190 (25,406) $ ( 42.59.2) 10,291 ----- ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (1,162) Current Year 4,800 1,162 TOTAL ADJUSTMENTS 3,638 I.l62 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ (21,768) $ 11,453 See the accompanying Independent Auditors' Report. 34 REVENUES Interest Other TOTAL REVENUES EXPENDITURES Current Parks and Recreation CITY OF WHEAT RIDGE, COLORADO PARKS AND RECREATION DAMAGE DEPOSIT SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended December 31. 2001 2001 -.-" V ARIANCE- FA VORABLE 2000 --- BUDGET ACTUAL (UNFAVORABLE) ACTUAL ,- - ----- -- $ 1,000 $ 1,136 $ 136 $ 1,277 23,000 12,432 (10,568) 21,734 ,- 24,000 13,568 ( 10,432) 23,01 I 9,000 9,000 11,350 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 15,000 $ $ $ _ ~,661_ Q68 (10,432) See the accompanying Independent Auditors' Report. 35 CITY OF WHEAT RIDGE, COLORADO URBAN RENEWAL AUTHORITY SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended Dccember 3 I 200 I 2001 V ARIANCE- FAVORABLE 2000 _.~ BUDGET ACTUAL (UNF A~ORABLE) ACTUAL ~--- REVENUES Taxes $ 340,000 $ 356,450 $ 16,450 $ 337,033 Interest 25.000 18,103 (6,897) 29,671 Other ------ TOTAL REVENUES 365.000 374,553 9,553 366.704 EXPENDITURES Current Planning and Development 544,279 462,908 81,371 223,692 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES ( 179.279) (88,355) 90,924 143,012 OTHER FINANCING SOURCES Operating Transfers Out (280.000) (280.000) (54,5QQ) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ (459,279) (368,355) $ 90,924 88,512 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (2.628) Current Year 2,628 -- TOTAL ADJUSTMENTS (2,628) 2,628 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ ...l370,98,3J $ 91,140 See the accompanying Independent Auditors' Report. 36 CITY OF WHEAT RIDGE, COLORADO EQUIPMENT SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended December 3 I, 200 I 2001 V ARIANCE- FA VORABLE 2000 BUDGET ACTUAL (UNF A VORABL~) ACTUAL ----~ REVENUES Interest $ 12,000 $ 9,894 $ (2,106) $ 17,572 Other 40,000 56,276 16.276 9,370 ----~- TOTAL REVENUES 52.000 66,170 14,170 26,942 EXPENDITURES Capital Outlay 548,200 546,422 1,778 433.516 -- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (496,200) (480,252) 15,948 (406,574) OTHER FINANCING SOURCES Operating Transfers In 393,000 393,000 425,000 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ ----.U()3.200} (87,252) $ 15.948 18,426 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (70,351) Current Year 73.2 11 70,351 TOTAL ADJUSTMENTS 2,860 70,351 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ (84,392) $ 88,777 See the accompanying Independent Auditors' Report. 37 See the accompanying Independent Auditors' Report. 38 CITY OF WHEA T RIDGE, COLORADO COMPUTER SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended Decembcr 31 200 I 2001 V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNJ'~VORABLE) ACTUAL REVENUES Interest $ 13,000 $ 15,1 15 $ 2,115 $ 13,015 EXPENDITURES Capital Outlay 578,710 226,21 I 352,499 171,810 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (565,710) (211,096) 354.614 (158,795) OTHER FINANCING SOURCES Operating Transfcrs In 455,000 405,000 50,000 203,100 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ ( II 0~7lQl 193,904 $ 304,614 44,305 ~- ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (3,350) Current Year 2,950 TOTAL ADJUSTMENTS 2.950 _....Q.~502 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ 196,854 $ 40,955 _._--~-- See the accompanying Independent Auditors' Report. 39 CITY OF WHEAT RIDGE, COLORADO BAUGH HOUSE SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAl. Year Ended Dccember 3 I, 200 I 2001 ---....- V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL --' REVENUES Intergovernmental $ 100,000 $ 15,080 $ (84,920) $ 6,975 Interest 1,000 678 (322) 227 Other 10,000 _~Q()2 ----- TOTAL REVENUES 1 I 1,000 15,758 (95,242) 7,202 EXPENDITURES General Government 20,000 9,199 10,801 Capital Outlay 105,000 (!,758) 106,758 --.-!?,373 TOTAL EXPENDITURES 125,000 7,441 117,559 12,371_ EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (14,000) , 8,317 22,317 (5,171) OTHER FINANCING SOURCES Operating Transfers In 2,~QQ. EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (14,000) 8,3 I 7 $ 22,J17 (2,671) Encumbrances Prior Year (1,758) (5,220) Current Year 7,500 1,758 ------~ TOTAL ADJUSTMENTS 5,742 --.J3...462) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) $ 14JQ5'J (6,133) See the accompanying Independent Auditors' Report. 40 CITY Of WI lEA T RIDGE, COLORADO HOTEL / MOTEL SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended December 31, 200 I 2001 V ARIANCE- FA VORABLE 2000 BUDGET ACTUAL (~fNF A\iORi\BLE) ACTUAL ~~ REVENUES Taxes $ 540,000 $ 498,419 $ (41,581 ) $ 529,416 lntergovernmcntal 90,000 8,894 (81,106) 135,346 Interest 37,000 30,6]5 (6,385) 33,916 Other ....i,50Q, TOTAL REVENUES 667,000 537.928 (~29, 072) _"703,178 EXPENDITURES Police 379,395 324,844 54,551 168,955 Capital Outlay ------ TOTAL EXPENDITURES 379,395 ~_324,8-44 54.551 168,955 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 287,605 213,084 (74.521 ) 534,223 OTHER FINANCING SOURCES (USES) Operating Transfcrs In 67,537 Operating Transfers Out (218,000) (218,000) ~(),OOO) - TOTAL OTHER FINANCING SOURCES (USES) (2 I 8,QOil) (21jl,OOO) I7 ,537 -- - EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ 69,605 $ ( 4,91.Q} $ (74,52,1) $ 551,7&2. - - See the accompanying Independent Auditors' Report. 41 CITY OF WHEAT RIDGE, COLORADO UNDERGROUND CABLE SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended Dccember 31, 200 I 2001 V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNXA VORABL,E) ACTUAL REVENUES Intercst $ 27,-451 $ 18,128 $ (9,323) $ 14,935 TOTAL REVENUES 27,451 18,128 (9,323) 14,935 ~ EXPENDITURES Capital Outlay 220,000 . ~,978 S.~,022 61,955 EXCESS OF REVENUES OVER (LINDER) EXPENDITURES (192,549) ..J.l.I.8., 8 5 0 ) Z3,699 ('!7 ,020) OTHER FINANCING SOURCES Operating Transfers In 200,000 _---.lQ0,000 400,000 ~._- TOTAL OTHER FINANCING SOURCES 200,000 200,000 400,000 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ 7,451 $ 81,150 $ 732699 $ 352,980 See the accompanying Independent Auditors' Report. 42 REVENUES Charges for Scrvices Interest Other TOTAL REVENUES EXPENDITURES Current Parks and Recreation CITY OF WHEAT RIDGE, COLORADO RECREATION CENTER OPERATING SCHEDULE Of REVENUES, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Y car Ended Deccmber 3 I, 200 I 2001 --"- V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNFA VORABLE) ACTUAL $ 1,4 I 5,072 $ 1,659,536 $ 244,464 $ 1,378,709 25,000 19.159 (5,841) 22,393 6,046 833 ,<5,213) 2,100 1446,118 1 ,679,528~ 233,410 1,403,202 ----- 1,683, I 00 ---. 1.638, I 57 44,943 1,127,291 ~- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ $ 4lJ7 I $ $ 275,911 278,153 (236,9(l2) See the accompanying Independent Auditors' Report. 43 DEBT SERVICE FUNDS The 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. Recreation Center Fund - accounts for Y, cent sales tax collected for the payment of debt service for the recreatiOn center. Compensated Absences - accounts for funds received from the General Fund to pay compensated absences of the City's employees. This fund was closed dunng the year ending December 31,2001 CITY OF WHEAT RIDGE, COLORADO DEBT SERVICE FUNDS COMBINING BALANCE SHEET Decem ber 3 I 200 I See the accompanying Independent Auditors' Report. 44 CITY OF WHEAT RIDGE, COLORADO DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Y car Ended December 3 I , 200 I TOTALS RECREA TION COMPENSA TED CENTER ABSENCES 2001 2000 - - -"~_.~ -- .- REVENUES Taxes $ 3,098,662 $ $ 3,098,662 $ 3,001,147 Intergovernmental 10,000 10,000 10,000 Interest 665,498 1,843 667,34 I 571,977 Other 8,500 8,500 6,000 TOTAL REVENUES 3,782,660 1,843 3,784,503 3,589,124 --- ---------- -- EXPENDITURES Current Other 79,470 79,470 1,50 I ,830 Capital Outlay 54,650 54,650 116,078 Debt Servicc Principal 1,080,000 1,080,000 1,035,000 Interesl and Fiscal Charges 50~,889 503,889 543,443 TOTAL EXPENDITURES 1,638,539 79,470 1,7I 8,009 3, I 96,351 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,144,121 (77,627) 2,066,494 392,773 - ----------- OTHER FINANCING SOURCES (USES) Operating Transfers In 402,000 50,000 452,000 777,360 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 2,546,121 (27,627) 2,518,494 1,170,133 FUND BALANCE, BEGINNING 9,763,409 31,988 9,795,397 9,115,670 Residual Transfer Out . (4,361) (4,361) (490,406) FUND BALANCE, ENDING $ 12,309,530 $ $ 12,309,530 $ 9,795,397 See the accompanying Independent Auditors' Report. 45 CITY OF WHEAT RIDGE, COLORADO RECREA TION CENTER SCHEDULE OF REVENUES EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL Year Ended Decembcr 31, 200 I BUDGET REVENUES Taxes Intergovernmental Interest Other $ 2,987.450 10,000 300,000 TOTAL REVENUES 3,297.450 EXPENDITURES Capital Outlay Debt Service Principal Interest and Fiscal Charges 180,000 1,080,000 502,818 TOTAL EXPENDITURES 1,762,818 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,534,632 OTHER FINANCING SOURCES Operating Transfers In 402,000 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES Encumbrances Prior Year Current Year $ 1,936,632 TOTAL ADJUSTMENTS EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (GAAP BASIS) 2001 ACTUAL V ARIANCE- FA VORABLE 2000 (UNFAVORABLE) ACTUAL $ 3.098,662 $ 10,000 665,498 . .,Jl,50.o~ $ 111,212 3,001,147 10,000 563,750 6.000 365,498 8,500 3,782,660 485,210 3,580,897 39,563 140,437 127,564 1,080,000 503,889 ___.._____...u (1,071 ) 1,035,000 543,-~3 1,623,452 139.366 1,706,007 2. I 59,208 624,576 l.,,82'!.c890 402,000 687,360 2,561,208 $ -- 624.576 2,562,250 (42,440) 27.353 (1,416,706) 42,440 (!5,087) (1,374,266) $ ~ 2,546,12 I $ 1,187,984 46 See the accompanying Independent Auditors' Report. CITY OF WHEAT RIDGE, COLORADO COMPENSA TED ABSENCES SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended Dccember 31, 200 I 2001 V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNF A VORABLlO) ACTUAL --.- REVENUES Interest $ 5,000 $ 1,843 $ (3,157) $ 5,350 EXPENDITURES Current Other 84,000 . 79,470 4,530 116,078 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (79,000) (77,627) 1,373 (110,728) OTHER FINANCING SOURCES Operating Transfcrs In 50.000 50,000 90,000 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES $ (29.,OOOJ $ (27,6'2.]J $ 1,373 $ ---.l20, n~ - See the accompanying Independent Auditors' Report. 47 PROPRIETARY FUNDS The EnterprIse Fund accounts for operations that are financed and operated m a manner simIlar to a private busmess enterprise. Wheat Ridge Housing Authority - This fund is used to account for financing and mvesting activities for providing low income housmg and first time home buyer assistance to City residents. The Internal Service Fund accounts for services prOVided by one department to other departments, on a cost reimbursement basIs. Risk Financing Insurance Reserve Fund - This fund is used to account for rIsk financmg activities through its recording of claims expenses and liabilitIes and charges to other funds for costs. This fund was closed during the year endmg December 3 I, 200 I - CITY Of WHEAT RIDGE, COLORADO ENTERPRISE FUND WHEAT RIDGE !lOUSING AUTHORITY SCHEDULE Of REVENUES EXPENDITURES AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL (NON-GAAP BASIS) Year Ended Decembcr 3 I, 200 I 2001 V ARIANCE- FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERA TING REVENUES Capital Contributions $ 500,000 $ 500,000 $ Operating Transfers In 500,000 500,000 Loan Proceeds 238,295 238,294 (I) Interest Income 4,000 3,672 (328) Rentallncomc 16,000 15,650 (350) Other 102,385 102,385 ------- TOTAL OPERATING REVENUES 1,360,680 1,360,001 (679) ------ OPERATING EXPENDITURES Capital Outlay 1,258,295 1,292,129 (33,834) Other 42,615 4.570 Interest 2,000 1,573 427 ----- TOTAL OPERATING EXPENDITURES 1,302,910 1,298,272 (33,407) EXCESS Of REVENUES OVER (UNDER) EXPENDITURES $ 57,770 61,729 $ _~3,959 GAAP BASIS ADJUSTMENTS Loan Proceeds (238,294) Capital Outlay 1,292,12.9. Net Income $ 1.,115,564 ------ - See the accompanying Independent Auditors' Report. 48 CITY OF WHEAT RIDGE, COLORADO INTERNAL SERVICE FUND RISK FINANCING INSURANCE RESERVE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL Year Ended Deccmber 3 I, 200 I 2001 V ARIANCE- FAVORABLE 2000 BUDGET ACTUAL (UNFA VORABLE) ACTUAL ~---~. OPERATING REVENUES Insurance Reimbursemenls $ 5,000 $ 110,045 $ 105,045 $ 374,812 Interest 10,000 10,885 885 23,71 I TOTAL OPERATING REVENUES 15,000 120,930 105,930 398,523 OPERATING EXPENDITURES Insurance Premiums 100,000 73,600 26,400 87,758 Insurance Claims 225,000 _202,276 22,Z~4 131,048 TOTAL OPERATING EXPENDITURES 325,000 275,876 49,124 218.806 , EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (31O,0~()) $ ( 154,946) $ ----.l~5, 0 54 $ 179,7.11. - See the accompanying Independent Auditors' Report. 49 FIDUCIARY FUNDS Agency Funds are used to account for assets held by the City m a trustee capacity or as an agent. Public Works Escrow - accounts for funds received prior to the issuance of certain constructIOn permits, to guarantee the work reqUired by the permit. Upon completIOn, the funds are returned. This fund was closed dunng the year endmg December 31, 2001 CATV (Cable Television) Property Damage - accounts for funds received from the cable televISIon permittee for settlement of minor unresolved claims against the permittee for damage to pnvate property. This fund was closed dunng the year endmg December 31, 2001 CITY OF WHEAT RIDGE, COLORADO FIDUCIARY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS Year Ended December 31, 2001 Balance January I, 2001 Public Works Escrow Fund ASSETS Cash and Investments $ 111,6,69 LIABILITIES Refundable Escrow Deposits $ 143,(;69 CATV Property Damage Fund ASSETS Cash and Investments $ ~,515 LIABILITIES Refundable Escrow Deposits Due to Other Fund $ 5,000 525 Total Liabilities $ 5,525, Totals ASSETS Cash and Investments $ 149,194 LIABILITIES Refundable Escrow Deposits Due to Other Fund $ 148,669 525 Total Liabilities $ 149,194 Additions Deletions $ ,~776 $ 277,445 $ 133,776 $ 217,445 $ $ 5,525 $ $ 5,000 525 $ $ ~,525 $ $ 282,91Q. 133,77&. $ $ 282,445 525 133,776 $~~J,Z76 $ 282,970 See the accompanying Independent Auditors' Report. 50 Balance December 3 I, 2001 $ $ $ $ $ $ $ $ GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group records changes m the City's ownership of and investment in capital assets, mcluding land, bmldmgs, improvements to land and buildings, and equipment, the lives of which are greater than one year and whose costs exceed $5,000 ClTY OF WHEAT RIDGE, COLORADO GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCE Y car Ended December 3 I, 200 I Balancc Balance January I, Dccember 3 I , 2000 Additions Deletions 2001 SOURCE General Government City Administrator $ 181,93 I $ $ $ 181,931 Municipal Court 13,160 13,160 Building 3,958,906 17,923 3,976,829 Community Development 22. I7 4 17,779 39,953 ---~- TOTAL 4,176,171 35,702 ~11,873 ,- Public Safety Police Chief 63,717 63,717 Police Administrative Services 101,103 28,441 72 ,662 Animal Enforcement 86,727 24,505 111,232 Communications 486,603 486,603 DAR.E. 30,619 21.3 83 52,002 Police Records 6,503 6,503 Police Patrol 3 I 8.535 197,429 139,005 376,959 Criminal Investigation 173,501 92,349 13,826 252,024 Police Traftic Unit I 14,242 12,104 102,138 -'--- TOTAL 1,381.550 335,666 193,37~ 1,523,840 Public Works Administration 8,642,260 8,642,260 Engineering 244,045 106,819 26,953 323,91 I Street Maintenance 1,412,643 13,204 1,399,439 Traffic Maintenancc 226,551 226,551 Shops 199,656 ...!2'/. 6 5 6 TOTAL 10,725,155 106,8 I 9 __40,157 10,791,817 Parks and Recreation Administration 10,964,405 142,000 11,106,405 Recreation 14,060,616 14,060,616 Parks Maintenance 1,044,844 54,005 54,747 1,044,102 TOTAL 26,069,865 196,005 ~4,747 26,211,123 - - Wheat Ridge Town Center 25,178 -'.-- 25,178 TOTAL GENERAL FIXED ASSETS $ 42,377,919 $ 674,192 $ 288,280 $ 42,763,831 -, See the accompanying Independent Auditors' Report. 51 CITY OF WHEAT RIDGE, COLORADO GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 2001 See the accompanying Independent Auditors' Report. 52 SUPPLEMENTARY INFORMATION - The public report burden for this infonnation collection is estimated to average 380 hours annually RIDGE LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM D. Receipts from Federal Highway Administration 1. Total recei ts available 2. Minus amount used for collection ex 3. Minus amount used for nonhi hwa 4. Minus amount used for mass transit Remainder used for highway purposes ITEM A, Receipts from local sources: I Local hi hwa -user taxes a. Motor Fuel (from Item 1.A.5 ) b. Motor Vehicle (from Item LB.5 ) c. Total (a.+b.) 2. General fund a ro riations 3. Other local im osts (from a e 2) 4. Miscellaneous local recei ts (from 5. Transfers from toll facilities 6. Proceeds of sale of bonds and notes; a. Bonds - Ori inal Issues b. Bonds - Refundin Issues c. Notes d. Total (a. + b. + c.) 7. Total (I throu h 6) B, Private Contributions C. Receipts from Slate government (from a e 2) D, Receipts from Federal Government (from a e 2) ola receipts A. + -I FORM FHWA-S36 (Rev.I2-96) PREVIOUS EDITIONS OBSOLETE (Next Page) 53 LOCAL HIGHWAY FINANCE REPORT STATE. Colorado YEAR ENDING (mmlyy): December 200 I n, RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL 3 ITEM ts from Federal Governmen I FHW A (from Item 1.0.5.) 2. Other Federal a encies: a. Forest Service b. FEMA c. HUD ill. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL HIGHWAY SYSTEM (a) OFF NATIONAL HIGHWAY SYSTEM (b) TOTAL Notes and Comments: 28,034. 357,813 503,145 888 992 1,169 232 FORM FHW A-536 (Rev.12-96) PREVIOUS EDITIONS OBSOLETE 54 STATISTICAL SECTION Fiscal Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Notes: A. B CITY OF WHEAT RIDGE, COLORADO ASSESSED AND ESTIMATED ACTUAL V AWE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) Assessed Valuation $ 213,727,940 $ 209,434,190 210,478,200 218,408,520 225,668,720 258,349,980 263,531,500 298, I 51 ,840 303,991,980 366,666,430 Estirnated Actual Value 973,871,091 I, I 97,923,557 1,205,829,176 1,466,715,750 1,475, I 80,027 1,73 I ,072,652 1,751,299,092 2,0 I 6,73 7,030 2,045,045,488 2,590,584,239 Ratio of Total Assessed to Total Estimated Actual Value 21.95% 1748% 1746% 14.89% 15.30% 14.92% 15.05% 1478% 14.86% 1415% Jefferson County is the collection agent for the City of Wheat Ridge and, as such, could not separate real property, personal property and exempt property The amounts shown above represents all types of property Properties within the City are assessed by the Jefferson County Assessor on January 1 of each year Source: Jefferson County Assessor's Office 55 CITY OF WHEAT RIDGE, COLORADO GENERAL GOVERNMENTAL REVENUE BY SOURCE LAST TEN FISC AL YEARS (UNAUDITED) Fiscal Licenses Inter- Year Taxes (A) and Permits governmental 1992 $ 6,712,572 $ 344,309 $ 1,897,279 1993 7,005,422 291,983 I,3 72, 789 1994 7,448,440 333,660 1,430,934 1995 7,985,931 349,910 1,517,277 1996 8,208,493 382,732 1,626,800 1997 8,336,235 521,110 1,653,157 1998 8,942,83 I 566,341 1,733,602 1999 9,48 1,139 526,299 1,783,821 2000 9,453,901 527,396 1,789,295 2001 9,766,410 761,440 1,809,495 Notes: Includes the General Fund only A. Forty percent and twenty percent of the total sales tax revenue are accounted for in the Capital Projects and Recreation Center Debt Service Funds, respectively Source: City of Wheat Ridge audited financial statements, 1992 - 2001 56 Charges for Fines and Services Forfeitures Interest Other Total ~ ~ $ 304,036 $ 250,499 $ 112,805 $ 170,816 $ 9,792,316 310,458 296,523 88,893 138,641 9,504,709 383, I 85 377,415 158,206 106,961 10,238,801 408,747 398,777 325,831 99,673 11,086,146 461,252 555,237 171,905 133,713 I 1,540,132 512,237 541,466 145,159 83,374 11,792,738 519,887 666,731 248,396 172,659 12,850,447 539,002 679,850 309,885 206,584 13,526,580 448,321 567,582 400,42 I I 19,463 13,306,379 595,391 703,046 273,800 232,096 14,141,678 57 CITY OF WHEAT RIDGE, COLORADO GENERAL GOVERNMENTAL TAX REVENUE BY SOURCE LAST TEN FrSCAL YEARS (UNAUDITED) Liquor and Fiscal Property Telephone Auto Year Tax ~OccujJ~tion OWllership 1992 $ 560,570 $ ]73,188 $ 53,689 1993 569,769 181,593 55,050 1994 562,661 179,987 64,196 1995 561,053 190,575 62,197 1996 578,012 190,575 67,421 1997 596,828 249,397 73,145 1998 618,297 243,972 73,496 1999 618,603 256,489 81,208 2000 626,098 248,872 78,757 2001 628,435 251,1 ]8 82,418 Notes. Includes the General Fund only A. Forty percent and twenty percent of the total sales tax revenue are accounted for in the Capital Projects and Recreation Center Debt Service Funds, respectively Source: City of Wheat Ridge audited financial statements, 1992 - 2001. 58 Lodgers Franchise and Sales Tax (A) Use Tax Tax Admissions Total ---- $ 3,269,706 $ 1,531,200 $ 738,133 $ 386,086 $ 6,712,572 3,266,609 1,694,755 810,169 427,477 7,005,422 3,650,712 1,616,251 826,983 547,650 7,448,440 3,648,5 I 9 1,844,393 891,032 537,868 7,735,637 3,733,647 2,166,468 906,914 565,456 8,208,493 4,088,914 1,923,346 819,111 585,494 8,336,235 4,383,632 2,178,958 831,252 613,224 8,942,831 4,670,441 2,423,665 847,075 583,658 9,481,139 4,835,372 2,197,487 888,909 578,406 9,453,901 4,997,185 2,260,041 1,002,610 544,603 9,766,410 59 CITY OF WHEAT RIDGE, COLORADO PROPERTY TAX LEVIES AND COLLECTIONS - GENERAL FUND LAST TEN FISCAL YEARS Fiscal Year (UNAUDITED) Percent of Current Percentage Delinquent Total Total Tax Total Tax of Levy Tax Tax Collections Tax Levy Collections Collected Collections Collections to Levy , (A) $ 568,30 I $ 560,570 98.64% 840 $ 561,410 98.79% 568,30 I 569,769 100.02% 569,769 100 00% 569,360 564,513 9914% (1,852) 562,661 98.82% 568,195 563,402 9916% (2,349) 561,053 98.23% 593,069 580,601 97.89% (735) 579,866 97 77% 599,725 596,828 99.52% 71 596,899 99.53% 633,629 635,258 100.26% 1,653 636,911 100.52% 643,807 634,493 98.55% 1,600 636,093 98.80% 647,845 638,465 98.55% 2,191 640,656 98.89% 650,458 628,435 96.61% 752 629, I 87 96.73% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Notes: A. Net prior year tax abatements and adjustments due to revaluation of properly in Jefferson County Source: Jefferson County Assessors' Office and the City of Wheat Ridge audited financial statements, 1992 - 200 I 60 CITY OF WHEAT RIDGE, COLORADO COM PUT A TJON OF LEGAL DEBT MARGIN Computation of maximum debt allowed 2001 estimated actual valuation Legal debt limit percentage per City Charter S I 2.7 Legal debt limit Amount of debt outstanding Total bonded debt Less: Revenue Bonds Net general obligation bonded debt outstanding Legal debt limit Legal debt margin December 31, 2001 (UNAUDITED) $ Note: The City Charter Legal Debt margin is also subject to the State Constitution Section 20, Article X, "Taxpayers Bill of Rights" (TABOR) under which no debt has been authorized. Source: City of Wheat Ridge charter and Jefferson County Assessor's office. 61 $ 2,590,584,239 3% $ 77,717,522. $ 77,717,527 $ .771],7,527 Fiscal Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Notes: Source: CITY OF WHEAT RIDGE, COLORADO CERnF1CA TES OF PARnCIPA nON COVERAGE LAST TEN FISCAL YEARS (UNAUDITED) Sales Tax Debt Service Requirements Coverage Revenue Principal Interest Total Factor $ 6,321,351 $ $ 210,925 $ 2 I 0,925 5> 29.97 6,533,2 I7 20,000 152,305 172,305 37.92 6,740,566 55,000 124,258 179,258 37.60 7,297,038 75,000 122,350 197,350 36.98 7,467,294 75,000 119,650 194,950 38.30 8,177,821 960,000 117,025 1,077,025 7.59 10,896,486 2,315,000 365,474 2,680,474 4.06 11,734,002 2,025,000 619,742 2,644,742 444 12,150,325 1,035,000 539,218 1,574,2 I 8 772 13,093,032 1,080,000 497,818 1,577,818 8.30 Sales tax revenue in the General, Capital Projects, and Recreation Center Debt Service Funds are included since debt service is paid with sales tax proceeds. CilJ of Wheat Ridge audited financial statements, 1992 - 200 I -I 62 FEDERAL FINANCIAL ASSISTANCE ~"r t ~l 3 Swanhorst, Dragon & Cutler LLC Honorable Mayor and Members of the City Council City of Wheat Ridge Wheat Ridge, Colorado INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the general purpose financial statements of the City of Wheat Ridge, as of and for the year ended December 31,2001, and have issued our report thereon dated May 24,2002 We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Untted States. Compliance As part of obtaining reasonable assurance about whether the CIty of Wheat Ridge's general purpose financial statements are free of material misstatement, we performed tests of its compltance with certain provisions of laws, regulations, contracts and grants, noncompltance with which could have a direct and material effect on the determinatIOn of general purpose financial statement amounts. However, providing an opinion on compliance with those provisIOns was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. - Internal Control Over Financial Reportmg In planning and performing our audit, we considered the City of Wheat Ridge's internal control over financial reporting m order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reportmg. Our consideration of the internal control over financial reportmg would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information of the City Council, management and federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. ~ ()1~, ~ L-u:.- May 24, 2002 8400 E. Crescent Parkway. SUite 600 . Greenwood Village, CO 80 III . (720) 528-4306 Fax (720) 528-4307 '''''It,I-L 'f ~ Swanhorst, Dragon & Cutler LLC Honorable Mayor and Members of the CIty Council City of Wheat Ridge Wheat Ridge, Colorado INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Compliance We have audited the compliance of the City of Wheat Ridge with the types of compliance requirements described in the U S. Office of Management and Budget (OMBJ Circular A-I33 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 200 I The City of Wheat Ridge's major federal programs are identified m the summary of audItors' results sectIon of the accompanying schedule offindmgs and questioned costs. Compliance with the requirements ofIaws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of CIty of Wheat Rtdge's management. Our responsibility is to express an opinion on the City of Wheat Ridge's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the Ul1lted States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMS Circular A-133,Audits of States, Local Governments, and Non- Profit Organizations. Those standards and OMS Circular A-133 reqUtre that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Wheat Ridge's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not proVIde a legal determination on the City of Wheat Ridge's compliance with those requirements. In our opinion, the City of Wheat Ridge complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 200 I Internal Control Over Compliance The management of the City of Wheat Ridge is responsible for establishing and mall1taining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City of Wheat Ridge's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMS Circular A-133 8400 E. Crescent Parkway. SUite 600. Greenwood Village, CO ~Olll . (72()) 52~-4306 Fax. (720) 528,4307 CITY OF WHEAT RIDGE, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS December 3 I, 200 I Summary of Auditors' Results Financial Statements Type of auditors' report issued. unqualified Internal control over financial reporting: Material weaknesses identified? Reportable conditions identified that are not considered to be material weaknesses? yes x no yes x no Noncompliance material to financial statements noted'! yes x no Federal Awards Internal control over major programs. Material weaknesses identified? yes x no Reportable conditions identified that are not considered to be material weaknesses'! yes x no Type of auditors' report issued on compliance for major programs: unqualified Any audit findings disclosed that are required to be reported in accordance with section 51 O(a) of Circular A-133'! yes x no Identification of major programs. 14.239 HOME Investment Partnership Program Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? yes x no Findings Related to Financial Statements The audit of the financial statements did not disclose any reportable conditions in internal controls that would be considered a material weakness, and did not disclose any instances of noncompliance with requirements of certain provisions of laws, regulations, and grants that were material to those financial statements. Findings and Questioned Costs for Federal Awards The audit offederal awards did not disclose any reportable conditions in internal controls that would be considered a material weakness, and did not disclose any instances of noncompliance with requirements of certain provisions of laws, regulations, and grants that were material to those federal awards. 66 '""~ "t' _i -. ----" <,- , >_.-- , Swanhorst, Dragon & Cutler LLC Honorable Mayor and Members of the City Council City of Wheat Ridge Wheat Ridge, Colorado INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS We have audited the general purpose financial statements of the CIty of Wheat Ridge, as of and for the year ended December 31, 2001 and have issued our report thereon dated May 24, 2002 These general purpose financial statements are the responsibility of the City of Wheat Ridge's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit m accordance with auditmg standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Wheat Ridge, taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysIs and is not a required part of the general purpose financial statements. The mformation in that schedule has been subjected to the audltmg procedures applied in the audit of the general purpose financial statements and, in our opinion, IS fairly presented in all material respects m relation to the general purpose financial statements taken as a whole. ~,~(~UC- May 24, 2002 ~400 E. Crescent Parkway. StIlte 600 . Greenwuud Village, CO ~o III . (20) 52~-4306 Fax (72(l) 52~,4307 CITY OF WHEATRlDGE. COLORADO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended December 31 200 I Accrued Accrued Federal lDeferred) (Deferred) Federal Grantor/Pass-Through CFDA Janlla" I December 3 I. Gr~!orlProgEam TItle Number 2001 Receipts Disbursements 2001 U.S. Department of Housing and l1rban Development Passed Through Colorado Division of Loca\ Affairs HOME Investment Partnership Program 14239 $ $ 500.000 $ 500.000 $ TOTAL US DEPARTMENT OF HOUStNG AND URBAN DEVELOPMENT 500.000 500.000 US. Department of Transportation Passed Through the Colorado Department of Transportation State and Community Highw3.v Safety 20 600 4,200 4,200 Safety Incentive Grant for Use of Seat belts 20.604 4.~I ~~L TOTAL U.S. DEPARTMENT OF TRANSPORT A TION 8921 _~8.92J ll.S. Department of Justice Public Safety Partnership andCommunity Policing Grants 16710 24,677 33.571 85.025 76.131 Local Law Enforcement Block Grant 16.592 20,498 20.498 Passed Through the Colorado Department of Public Safety Juvenile Accountability Incentive Block Grant 16.523 19.086 19,086 TOTAL U S. DEPARTMENT OF JUSTICE 24,677 73 155 124.609 76,13 I TOTAL FEDERAL FINANCIAL ASSIST <\NCE $ 24p7 $ ,~~,076 $ 633,53Q. $ _p~3 ~ See the accompanying Independent Auditors' Report 68 CITY OF WHEAT RIDGE, COLORADO NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS Year Ended December 31, 2001 NOTE 1: BASIS OF PRESENTATION The accompanying schedule of expenditures offederal awards includes the federal grant activity of the City and is presented on the accrual basis of accounting. Therefore, some amounts presented in this schedule may differ from amounts presented in the general purpose financial statements. 69