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Home My WebLink About2004 comprehensive Annual Financial Report December 31, 2004 CITY OF WHEAT RIDGE fl\A\Wl \ 200 Cf Nb-W FOLv2Il'1 Bringing Business and Community Together to Create a Dynamic City and Improve the Quality of Ufe for All CITY OF WHEAT RIDGE, COLORADO BASIC FINANCIAL STATEMENTS December 31, 2004 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Directory of Principal City Officials FINANCIAL SECTION Independent Auditors' Report Management's Discussion and Analysis a-I Basic Financial Statements Statement of Net Assets Statement of ActiVities 2 Balance Sheet - Governmental Funds 3 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 ReconcilIation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 Budgetary Companson Statement - General Fund 6 Budgetary Comparison Statement - RecreatIOn Center Operating Fund 7 Notes to FInancial Statements 8 - 19 Combining and Individual Fund Statements and Schedules Combining Balance Sheet - Nonmajor Governmental Funds 20 CombInIng Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 21 Open Space - Budgetary Comparison Schedule 22 PolIce Investigation - Budgetary Comparison Schedule 23 Senior Center - Budgetary Comparison Schedule 24 MuniCipal Court - Budgetary Comparison Schedule 25 Richards/Hart Improvement - Budgetary Comparison Schedule 26 TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued) Combining and Individual Fund Statements and Schedules (Continued) Conservation Trust - Budgetary Comparison Schedule 27 Baugh House - Budgetary Comparison Schedule 28 Hotel/Motel - Budgetary Comparison Schedule 29 Capital Projects - Budgetary Comparison Schedule 30 Wheat Ridge Urban Renewal Authority - Budgetary Comparison Schedule 31 SUPPLEMENTARY INFORMATION Local Highway Finance Report 32 - 33 District 1 Karen Berry Jerry DiTullio CITY CLERK MUNICIP AL JUDGE CITY TREASURER CITY ATTORNEY CITY MANAGER DIRECTOR OF PLANNING CITY OF WHEAT RIDGE, COLORADO PRINCIPAL CITY OFFICIALS December 3 I, 2004 District 2 Dean Gokey Wanda Sang MAYOR Gretchen Cerveny CITY COUNCIL DIRECTOR OF PARKS & RECREATION DIRECTOR OF PUBLIC WORKS CHIEF OF POLICE DEPUTY CITY MANAGER HUMAN RESOURCE MANAGER PURCHASING AGENT ACCOUNTING SUPERVISOR District 3 Karen Adams Mike Stites Pam Anderson Christopher Randall Mary Cavarra Gerald Dahl Randy Young Alan White Joyce Manwaring Timothy Paranto Daniel G Brennan Patrick Goff Karen Croom Linda Trimble Linda Stengel District 4 Lena Rotola Larry Schulz FINANCIAL SECTION _~~~T~!l~~!:~!_~__<;:_O I!1_~ ~.!lX~~_C I :nlll~\1 1',:111" IClL".II..,IIII' Honorable Mayor and Members of the City Council City of Wheat Ridge Wheat Ridge, Colorado INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Wheat Ridge, Colorado, as of and for the year ended December 3 ],2004, which collectively comprise the basic financial statements of the City, as listed in the table of contents. These financial statements are the responsibility of the City of Wheat Ridge, Colorado's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the City of Wheat Ridge, Colorado, as of December 31,2004, and the respective changes in financial position and the budgetary comparisons for the general and recreation center operating funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose offorming opinions on the financial statements that collectively comprise the City of Wheat Ridge, Colorado's basic financial statements. The combining and individual fund statements and schedules and supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part ofthe basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ~t~7?U. March 25, 2005 ~400 E ( re'icent Parkway. SUIte 600 . Greenwuud \ dlage. CO ~O] 11 . (720) .:'2R-4306 hlx. (720) .:'2~-43()7 Management's Discussion and Analysis As management of the City of Wheat Ridge, we offer this narrative overview and analysIs of the financial activitIes of the City of Wheat Ridge for the fiscal year that ended December 31, 2004. Please read It in conjunctIOn with the City's financial statements, which follow this section. Financial Highlights . The assets of the City of Wheat Ridge exceeded its liabilities at the close of fiscal year 2004 by $52.4 million (net assets). Of this amount, $10.9 million (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. . At the close of fiscal year 2004, the City of Wheat Ridge's governmental funds reported combined ending fund balances of $13.1 million, an increase of $11,4 71 in comparison with the prior year. Approximately 76%, $10.0 million is available for spending at the government's discretion (unreserved fund balance). . At the end of the fiscal year 2004, unreserved fund balance for the general fund was $4.6 million, or 27% of total general fund expenditures. . General fund actual revenues were $141,051 less than final budgeted revenue for the fiscal year 2004 and actual expenditures were $1.3 million less than final budgeted expenditures. Overview of the Financial Statements This discussion and analysis are intended to serve as an introductIOn to the City of Wheat Ridge's basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements report information on all activities of the City and its component unit (Wheat Ridge Urban Renewal Authority). The statement of net assets includes all of the City's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is receIved or paid. The statement o/net assets presents information on all of the City of Wheat Ridge's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Wheat Ridge is improving or deteriorating. The statement 0/ activities presents information showing how the City of Wheat Ridge's net assets changed during fiscal year 2004. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses reported in this statement for some items a will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements include not only the City itself, but also a legally separate Urban Renewal Authority for which the City is financially accountable. The governmental activities of the City include general government, planning and development, police, public works, and parks and recreation. Fund financial statements. The fund financial statements proVide more detailed information about the City's most significant funds - not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. . Some funds are required by State law and bond covenants. . The City Council establishes other funds to control and manage money for particular purposes (like the Recreation Center Operating Fund) or to show that it is properly using certain taxes and grants (like the Conservation Trust Fund). The City has one type of fund: Governmentalfunds - All of the City's basic services are included in governmental funds, which focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps determine whether or not there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information at the bottom of the governmental funds statement, or on the subsequent page, is proVIded to explain the relationship (or differences) between them. Financial Analysis of the City as a Whole Net assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Wheat Ridge, assets exceeded liabilities by $52,421,598 at the close of the 2004 fiscal year. By far the largest portion of the City of Wheat Ridge's net assets (76%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Wheat Ridge uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City of Wheat Ridge's net assets (3%) represents resources that are subject to external restrictions on how they may be used (open space and parks, police investigations, Richards/Hart estate, hotel/motel police activities, government b access channel and emergency reserves). The remaining balance ofumestricted net assets ($10,865,539) may be used to meet the City's obligations to citizens and creditors. At the end of the current fiscal year, the City of Wheat Ridge is able to report positive balances in net assets for the City as a whole, as well as for its governmental funds as a whole. The same situation held true for the prior fiscal year. City of Wheat Ridge Net Assets Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets Governmental Activities 2004 2003 $14,740,570 $15,116,733 $39,894,101 $38,757,534 $54,634,671 $53,874,267 $572,911 $588,703 $1,640,162 $2,027,796 $2,213,073 $2,616,499 $39,894,101 $1,661,958 $10,865,539 $52,421,598 $38,757,534 $1,482,039 $11,018,195 $51,257,768 Changes in Net Assets Governmental activities. . Governmental-type Activities increased the City's total net assets by $1.2 million. . A key element of the increase in total net assets was the budget reduction program adopted by City Council as part of the 2004 budget. This program included the elimination of 19.75 FTE's and numerous program reductions or eliminations. c City of Wheat Ridge Changes in Net Assets Governmental Activities 2004 2003 Revenues Program Revenues Charges for services Operating grants and contributions Captial grants and contributions General Revenues Property taxes Sales taxes Use taxes Franchise taxes Other taxes Investment earnings Miscelleneous $3.850.317 $1,490.126 $1,377.208 $677,888 $10,106.270 $1 ,706.248 $1,324,695 $1,363,477 $248.936 $426.856 $22,572,021 Total revenues $4,025,773 $1,444,608 $1.862,638 $647.863 $9,831,699 $1.980,459 $1.254.527 $1,734,081 $263,694 $300,943 $23,346.285 Expenses General Government Planning and Development Police Public Works Parks and Recreation Total expenses Increases in net assets Net assets, beginning Net assets. endinq $5,873.395 $571,169 $6,115,163 $3.809.575 $5.038,889 $21,408,191 $1,163,830 $51.257,768 $52,421,598 $4,460,533 $558.324 $7.301.033 $3,112,687 $4,736,994 $20,169,571 $3,176,714 $48.081,054 $51 ,257.768 . Charges for services decreased by over $175,000 primarily due to a decrease in municipal court fines in fiscal year 2004. The Police Department experienced several vacancies throughout the year requiring the realignment of resources from the traffic unit to the patrol unit. . Capital grants and contributions decreased by about $485,000 due to a decrease in several revenue sources in fiscal year 2004 compared to fiscal year 2003. A Community Development Block Grant (CDBG) was received in 2003 for a capital project and the City received a reimbursement from the Colorado Department of Transportation (CDOT) in 2003 for a capital project, both of which were not received in 2004. In addition, open space tax revenue and open space grants decreased slightly compared to fiscal year 2003. . Sales tax revenues increased ($274,571) and use tax revenues decreased ($274,211) by about the same amount between fiscal years 2003 and 2004 for a net increase in sales and use tax revenues of $360. A new sales tax software program was installed in d 2004 and It was discovered that a portiOn of revenues m 2003 were inappropriately categorized m the old sales tax software program as use tax rate rather than sales tax accounting for the mcrease m sales tax revenues and the decrease in use tax revenues m fiscal year 2004 . Other taxes decreased by over $370,000 m fiscal year 2004 pnmarily due to a one- time settlement received from Comcast in fiscal year 2003 for past due telephone occupation tax and a decrease in lodgers' tax revenue receiVed in fiscal year 2004 which has decreased annually since the September 11th 2001 terrorist attack. . General Government expenses include budgets for the City Treasurer, LegislatIve SerVices, Finance, Economic Development, City Manager, City Attorney, City Clerk's Office, Municipal Court, Administrative Services, Human Resources, Community Support, Risk Management, Sales Tax, Purchasing and Contractmg, InformatiOn Technology and Central Charges. . Begmning m fiscal year 2004, all medical dental, life and disability insurance benefit premIUms ($1.3 million) for employees of the General Fund were budgeted in the Central Charges budget of General Government rather than m the mdivldual department budgets to Simplify budgeting and accountmg procedures. This contributes to the large mcrease in General Government expenditures. . The increase in total expenses can be primarily attributed to the normal increases in operatmg expenses associated With employee salaries and benefits. Although an across the board salary increase was not included as part of the 2004 budget, employees were still eligible for 3% merit Increases. In addition, medical insurance, propertylcasualty insurance and workers' compensation insurance premIUms expenenced double digit Increases in fiscal year 2004 compared to fiscal year 2003 Expenses and Program Revenues - Governmental Activities $7,000.000 $6,000,000 $5,000,000 $4.000,000 $3,000,000 $2,000,000 $1,000,000 $0 --- General Government Planning and Development Police Public Works Parks and Recreation iii Expenses . Program Revenues e Revenues by Source - Governmental Activities Franschise taxes 5.9% Investment Miscelleneous Other taxes earnings 1 9% Ch f 1 10lc arges or 6.0% 0 services 171% Operating grants and contributions 6.6% Capital grants and contributions 6.1% Property taxes 3.0% Use taxes 76% Sales taxes 44.8% Financial Analysis of the Government's "'unds The CIty of Wheat Ridge uses fund accounting to ensure and demonstrate compliance with finance-related legal reqUirements. Governmental funds. The focus of the City of Wheat RIdge's governmental funds IS to provide information on near-term inflows, outt1ows, and balances of spendable resources. Such information IS useful m assessmg the City of Wheat Ridge's financmg requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year As of the end of fiscal year 2004, the City of Wheat Ridge's governmental funds reported combmed endmg fund balances of $13 I million, an mcrease of $1 1,471 in companson with the prior year Approximately 76% of this total amount ($10 0 mIllIon) constitutes unreserved fund balance, which IS available for spending at the City's discretion. The remamder of fund balance is reserved to mdicate that It IS not available for new spendmg because It has already been committed I ) for encumbrances ($1.6 million), 2) for open f space and parks ($532,408), 3) for police investigations ($58,794),4) for Richards Hart Estate ($52,264),5) for hotel/motel police activities ($179,290), 6) for government access channel ($122,766) and 7) for state mandated emergency reserves ($600,000). The general fund is the chief operating fund of the City of Wheat Ridge. At the end of fiscal year 2004, unreserved fund balance of the general fund was $4.6 million, while total fund balance reached $5.9 million. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 27% of total general fund expenditures, while total fund balance represents 35% of that same amount. The Baugh House Fund, a special revenue fund, was closed during the 2004 fiscal year. The Wheat Ridge Historical SOCIety assumed the duties of tracking revenues and expenditures for the restoration of the Baugh House. The fund balance of $216 was transferred to the general fund. General Fund Budgetary Highlights The original budget was amended by City CouncIl for a total of$389,041 in supplemental budget appropriations throughout the 2004 fiscal year These amendments can be briefly summarized as follows: . $17,257 allocated for City Council training and conferences . $17,300 allocated for Police Department mobile radios . $32,500 allocated for building inspection services . $214,500 allocated for the Neighborhood Revitalization Study . $7,545 allocated for under budgeted City Treasurer salary . $20,367 allocated for under budgeted City Clerk salary . $8,022 allocated for Police Department bullet proof vests . $71,550 for City Attorney and Municipal Court services Of this increase, $20,386 was to be funded from various grant revenue. The remaining $368,655 was to be budgeted from available fund balance. During the year expenditures were less than budgetary estimates. Capital Asset and Debt Administration Capital assets. The City of Wheat Ridge's investment in capital assets for its governmental activities as of December 31, 2004 amounts to $39.9 million (net of accumulated depreciation). This investment in capital assets includes land, artwork, land improvements, buildings, vehicles, machinery and equipment, and infrastructure. Major capital asset events during the 2004 fiscal year included the following: . Computer network and telecommunication upgrades in the amount of$115,059 . Upgrades to the HV AC system at City Hall in the amount of $228,182 g . Replacement of the generator at City Hall in the amount of $74,665 . The purchase of new city vehicles and accessories in the amount of$246,611 . Preventative roadway and sidewalk maintenance in the amount of$581,007 . Street improvement projects (Harlan, Jay, Kipling., etc.) in the amount of$542,196 . Open space, park and trail construction and improvements (Manwaring, Randall, Clear Creek Trail, etc.) in the amount of $652,401 . Recreation Center improvements in the amount of $75,826 City of Wheat Ridge's Capital Assets (net of depreciation) Governmental Activities 2004 2003 Land Artwork Land improvements Buildings Vehicles Machinery and equipment Infrastructure Total Capital Assets $8,879,376 $5,000 $3,582,182 $13,808,853 $1,295,928 $1,496,907 $10.825.855 $39,894,101 $8,879,376 $5,000 $3,173,204 $14,236,106 $1 ,426,4 79 $1,109,450 $9.927.919 $38,757,534 Long-term debt. At the end of the 2004 fiscal year, the City of Wheat Ridge had total long-term debt outstanding of$572,911. Of this amount, $14,472 is due within one year. This total debt represents compensated absences, which are expected to be liquidated primarily with revenues of the General Fund. Economic Factors and Next Year's Budgets and Rates An increase in the City of Wheat Ridge's sales and use tax rate from 2% to 3% was approved by a vote of the people in November 2004. The rate increase, effective January 1,2005, is projected to increase sales and use tax revenues by approximately $6.3 million in 2005. Due to increases in assessed property valuations, the City of Wheat Ridge temporarily reduced its mill levy from 1.860 mills to 1.806 mills for the 2004 budget to comply with the TABOR revenue limits. Due to a decrease in assessed property valuations, the City increased its mill levy from 1.806 to 1 830 mills for the 2005 budget. The City of Wheat Ridge's mill levy is still the lowest in the Denver metro area. h The 2005 budget was adopted before the general election in 2004; therefore, the budget was balanced based on a 2% sales and use tax rate. The 2005 budget was adopted on the assumption that General Fund revenues would increase by 3.1 % compared to 2004 Several supplemental budget appropriations will be presented to City CouncIl throughout the 2005 fiscal year to address public safety, economic development and parks programs. During the 2004 fiscal year, unreserved fund balance in the General Fund decreased to $4.6 million. The City of Wheat Ridge has appropriated $1.2 million of this amount for general operating expenses in the 2005 fiscal year budget. The General Fund unreserved fund balance was projected to decrease to $4 4 million by the end of2005 but with the increase in the sales and use tax rate, the fund balance is projected to increase to $7.8 million. The adopted 2005 fiscal year budget is $26.7 million, an increase of $1.3 over 2004. It includes a $22.2 million operating budget and a $3.5 million capital investment budget. Requests For Information This financial report is designed to provide a general overview of the City of Wheat Ridge's finances for those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Deputy City Manager City of Wheat RIdge 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 BASIC FINANCIAL STATEMENTS CITY OF WHEAT RJDGE. COLORADO STATEMENT OF NET ASSETS December 31, 2004 URBAN PRIMARY GOVERNMENT RENEWAL GOVERNMENTAL ACTIVITIES AUTHORITY 2004 2003 2004 - --_.-- ASSETS Cash and Investments $ 11 925.334 $ 11,879,932 $ 226.788 Receivables Accounts 1,520.201 I 778,223 Property Taxes 692,624 684.343 260,000 Intergovernmental 600,112 774,235 40,322 Accrued Interest 2.299 Capital Assets, Net of Accumulated Depreciation _..19,89..4,101 38,757,534 TOTAL ASSETS 54,634,6'7l 53,874,267 527.110 LIABILITIES Accounts Payable 468.421 502.452 41,996 Accrued Liabilities 398,708 Refundable Deposits 237,570 241,309 Claims Payable 227,847 ] 73,684 Deferred Revenues 706,324 711,643 260,000 Noncurrent Liabilities Due Within One Year 14,472 39,343 Due in More Than One Year 558,439 549,360 TOTAL LIABILITIES 2,213,073 __.2,616,499 301.996 NET ASSETS Invested in Capital Assels, Net of Related Debt 39,894,101 38,757,534 Restricted for Open Space and Parks 627,060 537,296 Restricted for Police Investigations 77,744 116,773 Restricted for Richards/Hart Estate 55,098 45,159 Restricted for HotellMotel Police Activities 179,290 208,333 Restricted for Government Access Channel 122,766 84,478 Restricted for Emergencies 600,000 490,000 Unrestricted 10,865,539 ].1018,195_ 225,114 TOTAL NET ASSETS $ 52,421,598 $ _~J.257,7~8 $ ~ ~~114 The accompanying notes are an integral part of the financial statements. C]TY OF WHEAT RIDGE, COLORADO STATEMENT OF ACT]VITlES Year Ended December 3 I. 2004 FUNCT10NS/PROGRAMS EXPENSES PROGRAM REVENUES ~-- --- OPERATING GRANTS AND CONTRIBUTIONS PRIMAR\ GOVERNMENT Governmental .\ctivities General Government Planning and Development Police Public Works Parks and Recreation Total Primary Government COMPONENT t:N]T \ Irban Renewal Authority CHARGES FOR SERVICES $ 5,873,395 $ 124,055 $ 571,]69 737.602 6,115,163 677 ,232 3,809,575 53,066 ],490,126 ------..5,038,889 2,258,362 ---~--- $ 21,408.J'll $ 3.850,3 17 $ __1A9~126_ $ 420"214 $ $ GENERAL REVENUES Property Taxes Sales Taxes Use Taxes Franchise Taxes Other Taxes Investment Earnings Miscelleneous TOTAL GENERAL REVENUES CHANGE rN NET ASSETS NET ASSETS, Beginning NET ASSETS, Ending The accompanying notes are an integral part of the financial statements. 2 NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS URBAN RENEW A.L AUTHORITY 2004 CAPITAL GRANTS AND TOTAL GOVERNMENTAL ACTIVITIES CONTRIBUTIONS 2004 2003 $ $ (5,749,340) $ 166.433 (5.437,931) (2,266,383) tl,i()3.Jl2l (4,406,294) $ 83.215 ( 6,266,415) (1,355,080) (1191,978) 1,377,208 $ 1,377)08 ( 14,690,540) (12,836,552) $ (420,214) 677,888 647,863 250.848 10,106.270 9.831.699 40,322 1.706.248 1,980.459 1,324,695 1.254,527 1.363.477 1,734.081 248,936 263,694 3.043 426,856 300,943 ._-_._~--------- --------- 15,854,370 _16,013,266 294,213 1,163,830 3,176,714 (126,001) 51,257768 48.08 I ,054 351,115 ---- $ 52,421,,591. $ 51.257.768 $ 225,114 CITY OF WHEAT RIDGE, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 3 I, 2004 RECREA TJON CENTER CAPITAL GENERAL OPERATING PROJECTS ASSETS Cash and Investments $ 5,395,428 $ 2,592,041 $ 3,087,140 Receivables Accounts 919.621 10,372 577,379 Property Taxes 692,624 Intergovernmental 390,650 Accrued Interest 2,299 Due From Other Funds 9.922 -- TOTAL ASSETS $ 7,408,245 $ _2,602,413 $ 3,666,818 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $ 325,861 $ 42,050 $ 96,420 Accrued Liabilities Refundable Deposits 237,570 Due to Other Funds Claims Payable 227,847 Deferred Revenues Property Taxes 692,624 Other 13,700 TOTAL LIABILITIES 1,497,602 42,050 n~,420 FUND BALANCES Reserved for Encumbrances 592,769 5,856 839,3 I 7 Reserved for Open Space and Parks Reserved for Police Investigations Reserved for Richards/Hart Estate Reserved for Hotel/Motel Police Activities Reserved for Government Access Channel 122,766 Reserved for Emergencies 600,000 Unreserved, reported in General Fund 4,595,1 08 Special Revenue Funds 2,554,507 Capital Projects Fund __ 2,731,0~ TOTAL FUND BALANCES 5,910,643 2,560,363 3,570,398 TOTAL LIABILITIES AND FUND BALANCES $ ..-----L..498,245 $ _2,602,413 $ 3,666,818 Amounts reported for governmental activilies in the statement of nel assets are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. Long-term liabilities consisting of compensated absences are not due and payable in the current period and therefore, are not reported in the funds. Net Assets of Governmental Activities The accompanying notes are an integral part of the financial statements. 3 OTHER TOTAL GOVERNMENTAL GOVERNMENTAL FUNDS --.-- FUNDS 2004 2003 _..~- $ 850.725 $ 11.925,334 $ 11,879,932 12,829 1,520,201 1,778.223 692.624 684,343 209,462 600.112 774,235 2.299 9,922 37.375 - $ . I,OW1.6 $ 1D5M'J2 $ 1),154,lQ8c 39,894,101 38,757,534 _(572,911) .Jl8.8,703] $ 52,421,598_ $ _ _51 >3.57, 768 CITY OF WHEAT RlDGE, COLORADO STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 3 I 2004 RECREATION CENTER CAPlT AL GENERAL OPERATING PROJECTS REVENUES Taxes $ 9,310,571 $ $ 5,203,070 Licenses and Penn its 961,332 Intergovernmental 1,759,836 10.000 Charges for Services 638,958 1.919,903 Fines and Forfeitures 522.773 Interest 119.876 84,249 36,021 Miscellaneous 270,811 40,787 ___ 34,229 TOTAL REVENUES ----.!3,584,!..57 2,054,~~ ~273,320 EXPENDITURES Current General Government 5,856,934 Planning and Development 567,515 Police 5,680,142 Public Works 2,686,240 Parks and Recreation 2,319,692 2,1 83, 181 Capital Outlay _._~ 2,3 I 8,229 TOTAL EXPENDITURES 17,] 10,523 2,183,181 2,318,229 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 13,526,366) (128,24:U 2,955,091 OTHER FINANCING SOURCES (USES) Transfers In 2,595,683 Transfers Out _~~0,46Z2 TOTAL OTHER FINANCING SOURCES (USES) 2,59~,683 (1,980,467) NET CHANGE IN FUND BALANCES (930,683) (128,242) 974,624 FUND BALANCES, Beginning 6,841,326 2,688,605 2,595,774 FUND BALANCES, Ending $ ~~,91O,643 $ 2,560,363 $ 3,570,398 The accompanying notes are an integral part of the financial statements. 4 OTHER TOTAL GOVERNMENTAL GOVERNMENTAL FUNDS - ----- FUNDS 2004 2003 --------- $ 224,906 $ 14.738.547 $ 14.915,608 961,332 819,241 1.367.208 3,13 7 ,044 3,607,593 12,090 2.570.951 2,604,479 29,363 552,136 819,056 8,790 248,936 263.694 60.764 __406,591 }16,831 l,703,121 _..J2.615,537 , 23,346,502 CITY OF WHEAT RIDGE, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 3 I, 2004 2004 2003 Amounts reported for governmental activities in the statemenl of activities are different because: Net change in fund balances, governmental funds $ 11,471 $ (43,689) Capital outlays to purchase or build capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net assels and allocated over their estimated useful lives as annual depreciation expense in the statement of activities. This is the amount by which capital outlay $2,798,203 exceeded depreciation ($1,618,120) and loss on disposal ($43,5] 6). 1,136,567 3,149,939 Repayments of long-term debl are expenditures in Ihe governmental funds, but they reduce long-term liabililies in the statement of net assets and do not affect the statement of activities. This amount includes a decrease in compensated absences. .J5,Z92 70,464 Change in Net Assets of Governmental Activities $ I, I 63,830 $ 3,] 76,714 The accompanying notes are an integral part of the financial statements. 5 CITY OF WHEAT RIDGE, COLORADO BUDGETARY COMPARISON STATEMENT GENERAL FUND Y car Ended December 31, 2004 VARIANCE WITH FINAL ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL ---.iNegativ.sL REVENUES ---- -------- Taxes $ 9,417,743 $ 9,417,743 $ 9.310,571 $ (107.172) Licenses and Permits 741,273 741,273 961,332 220,059 Intergovernmental 1,799,040 1,819,426 1,759,836 (59,590) Charges for Services 67\ ,766 671,766 638,958 ( 32.808) Fines and Forfeitures 811,000 811,000 522,773 (288,227) Interest ] 10,000 110,000 119,876 9,876 Miscellaneous __ 154,000 1~4,000 270,&\\ \16,811. TOTAL REVENUES ~13,704,&22 J3,725,2~ 13,584,157 ~O51) - EXPENDITURES AND ENCUMBRANCES Current General Government 5,64\,401 6,276,576 5,907,311 369,265 Planning and Developmenl 548,860 58] ,360 536,410 44,950 Police 6,012,936 6,038,258 5,626,355 411,903 Public Works 2,958,254 2,958,254 2,638,151 320, I 03 Parks and Recreation 2,870,792 1.566,836 2,417,001 149,835 ._--_..~ TOTAL EXPENDITURES AND ENCUMBRANCES ] 8,032,243 18,421,2~ -.!.?,125,228 1,296,056 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND ENCUMBRANCES (4,327,421) (4,696,076} . (3,541,07]2 ~55,005 OTHER FINANCING SOURCES Transfers In 2,595,467 - _~2,595,683 2,595,683 -- NET CHANGE IN FUND BALANCE, Budgetary Basis $ (I,731,9W $ ~(2, I 9.02231 ~ (945,388) $ ~o.l.J55,0()5_ ---- -- ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (578,064) Current Year 592,269 TOTAL ADJUSTMENTS -.--!4,705 NET CHANGE IN FUND BALANCE, GAAP Basis $ _J930,683) The accompanying notes are an integral part of the financial statements. 6 CITY OF WHEAT RIDGE, COLORADO BUDGETARY COMPARISON STATEMENT RECREATION CENTER OPERATING Year Ended December 31, 2004 VARIANCE ORIGINAL WITH FINAL AND FINAL Positive BUDGET ACTUAL (Neg~tive ) REVENUES --- Intergovernmental $ $ 10,000 $ 10,000 Charges for Services 2,059,82 I 1,919,903 (139,918) Interest 80,000 84,249 4,249 Miscellaneous 40,787 !O,782. ------- TOTAL REVENUES 2,139,8~L 2,054,939 --.J8~,!82) ~-- EXPENDITURES Parks and Recreation 2,205,296 2,189,037 16,259 TOTAL EXPENDITURES AND ECUMBRANCES __ 2,205-,-296 2,189,037 16,259 NET CHANGE IN FUND BALANCE, Budgetary Basis $ (65,475J (134,098) $ (68,623) ADmSTMENTS TO GAAP BASIS Encumbrances Prior Year Current Year 5,856 TOTAL ADJUSTMENTS 5,856 NET CHANGE IN FUND BALANCE, GAAP Basis $ (128,242) The accompanying noles are an integral part of the financial statements. 7 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 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 accounting policies of the City of Wheat Ridge, Colorado (the "City") conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies. Reporting Entity The financial reporting entIty consists of the City and organizations for which the City is financially accountable. All funds, organizations, institutions, agencies, departments and offices that are not legally separate are part of the City In addition, any legally separate organizations for which the City is financially accountable are considered part of the reporting entity financial accountability exists if the City appoints a voting majority of the organization's governing board and is able to impose its will on the organization, or if the organization provided benefits to, or imposes financial burdens on the City Based on the application of the above cntena, the City mcludes the following discretely presented component unit in its reporting entity Wheat Ridge Urban Renewal Authority - The City includes the Wheat Ridge Urban Renewal Authority (the "Authority") within its reporting entity The Authority Board members are appointed by the Mayor and Council. The Authority was created to redevelop or rehabilitate certain blighted areas of the City and receives the majority of its funding from the City In addition, any projects ofthe Authority require Council approval. The Authority IS reported as a discretely presented component unit. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all activities of the City and its cornponent unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities normally are supported by taxes and intergovernmental revenues. The statement of activities demonstrates the degree to which the direct expenses of the given functIOn or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include I) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Separate financial statements are provided for governmental funds. Major individual funds are reported as separate columns in the fund financial statements. 8 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Govemmental fund financial staternents are reported using the current financial resources measurement focus and the modified accrual basis of accounting Revenues are recognized as soon as they are both rneasurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payrnent is due. Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally are followed in the governrnent-wide financial staternents to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. When both restricted and unrestricted resources are available for use, it is the City's practice to use restricted resources first, then unrestricted resources as they are needed. The City reports the following major govemmental funds: 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. The Recreation Center Operating Fund accounts for recreation center revenue and program expenditures. The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital assets. 9 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Assets Cash and Investments - Cash equivalents include investments with original maturities of three months or less. Investments are recorded at fair value. Receivables - Accounts receivable consists primarily of sales and use tax, lodging tax and other miscellaneous receivables. Interfund Receivables and Payables - During the course of operations, numerous transactions occur between individual funds. The resulting receivables and payables are classified in the fund financial statements as due from other funds and due to other funds because they are short-term in nature Capital Assets - Capital assets, which include property, equiprnent and infrastructure, are reported in the government -wide financial staternents. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The City has recorded current year infrastructure additions but infrastructure assets purchased or donated in previous years will be capitalized in the future, as allowed by generally accepted accounting principles. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Capital assets of the City are depreciated using the straight line method over the following estimated useful lives. Land Improvements Buildings Equipment Infrastructure 25 years 10-40 years 3-40 years 50 years 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-halftheir current rate of pay. 10 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Assets (Continued) Accumulated unpaid vacation and sick pay is accrued when earned. In the governmental funds, amounts expected to be paid from available resources is recorded as a liability of the individual fund. A long-term liability has been recorded in the government-wide financial statements for the accrued compensated absences. Deferred Revenues - Deferred revenues include grant funds that have been collected but the corresponding expenditures have not been incurred. Property taxes earned but levied for a subsequent period are also recorded as deferred revenues in the financial statements. Long-Term Debt - In the government-wide financial statements, long-term debt and other long- term obligations are reported as liabilities. In the fund financial statements, govemmental fund types recognize long-term liabilities only when payment is due. Payrnents of long-term debt are reported as current expenditures. Net Assets/Fund Balance - In the government-wide financial statements, net assets are restricted when constraints placed on the net assets are externally imposed. In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Property Taxes Property taxes are levied on November I and attach as an enforceable lien on property on January I Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer's office collects property taxes and remits to the City on a monthly basis. Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding 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 in the Police Investigation Special Revenue Fund. II NOTE 2: NOTE 3: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY Budgets The City follows these procedures in establishing the budgetary data reflected In the financial statements: In September, the CIty Administration submits to the City Council a proposed operating budget for the fiscal year commencing the folloWIng January I The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to December 31, the budget is legally enacted through passage of a resolution. . Any budget revisions that alter the total expenditures of any fund must be approved by the City Council. Budgets are legally adopted for all funds ofthe City Budgets for the governmental funds are adopted on a non-GAAP basis using the encumbrance method. 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 appropriations by fund. CASH AND INVESTMENTS A summary of cash and investments as of December 3 I, 2004 follows. Petty Cash $ 2,768 Cash Deposits 9,339,720 Investments 2,582,846 Total $ 11.925.334 Cash Deposits The Colorado Public Deposit Protection Act (PDP A) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations. Amounts un deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDP A. The financial institution is allowed to create a single collateral pool for all public funds held. The pool is to be maintained by another Institution, or held in trust for all the uninsured public deposits as a group The market value of the collateral must be at least equal to 102% of the uninsured deposits. 12 NOTE 3: CITY OF WHEAT RlDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 CASH AND INVESTMENTS (Continued) Cash Deposits (Continued) Deposits are categorized to give an indication of risk assumed by the City at the end of the year. Category J mcludes deposits that are insured, Category 2 includes collateralized deposits with securities held by the pledging institution's trust department or agent in the City's name, and Category 3 includes uncollateralized, uninsured deposits. At December 31, 2004, the City's cash deposits had a carrying amount of $9,339,720, and a corresponding bank balance as follows: Insured (Category 1) Deposits Collateralized in Single Institution Pools (Category 2) $ 800,000 8.778.507 Total Cash Deposits $ 9.578.507 Investments Colorado statutes specify which instruments units oflocal government may invest, which include Obligations of the United States and certain U.S Agency securities Certain international agency securities General obligation and revenue bonds ofU.S local government entities Bankers' acceptances of certain banks Commercial paper Local government investment pools Written repurchase agreements collateralized by certain authorized securities . Certain money market funds Guaranteed investment contracts The City's investments are categorized below to give an indication of the 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, and 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 in the City's name. Fair Value U. S Agency Securities (Category 1) $ 2.132.696 13 NOTE 3: NOTE 4: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 CASH AND INVESTMENTS (Continued) Investments (Continued) At December 31,2004, the City had invested $59,320 and $71,932, respectively, in the Colorado Local Government LiqUId Asset Trust (Colotrust), and the Colorado Surplus Asset Fund Trust (CSAFE), investment vehicles established for local government entitles 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 in value to $100 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 mvestments owned by the Trusts. In additIOn, the City had invested $318,898 in money market accounts. These investments are not categorized since the underlying securities cannot be determined. Component Unit At December 31,2004, the Authority had cash deposits with a carrymg amount of$138,234, and a corresponding bank balance of $138,234 $100,000 of the bank balance was covered by depositor's insurance and is classified in Category I The remainmg balance was collateralized by instItution pools as required by State statute and is classified in Category 2. In addition, the Authority had $88,554 invested in the Colorado Local Government Liquid Asset Trust (Co lotrust). INTERFUND BALANCES AND TRANSFERS Due from Other Funds Due to Other Funds Amount General Fund General Fund Senior Center Fund Conversation Trust Fund $ 162 9,760 Total $ 9.922 The General Fund has paid certain expenditures on behalf of the Senior Center and Conservation Trust Funds. ]4 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 NOTE 4: INTERFUND BALANCES AND TRANSFERS (Continued) Transfers In Transfers Out Amount General Baugh House $ 216 General Open Space 615,000 General Capital Projects 1.980,467 Total $ 2.595.683 During the year, the City closed the Baugh House Fund with a final transfer to the General Fund. Transfers from the Open Space Fund and Capital Projects Fund to the General Fund were made to reimburse costs the General Fund incurred on behalf of these funds. NOTE 5: CAPITAL ASSETS Capital asset activity for the year ended December 31, 2004, is summarized below Balances Balances 12/3 I/03 Additions Deletions 12131/04 Governmental Activities Capital Assets, Not Being Depreciated Land $ 8,879,376 $ $ $ 8,879,376 Artwork 5,000 5,000 Total Capital Assets, Not Being Depreciated 8,884,376 8.884.376 Capital Assets. Being Depreciated Land Improvements 3,986,940 652,401 4,639,341 Buildings 18,393,021 40,378 18,433,399 Vehicles 3,301,052 246,611 317,166 3,230,497 Machinery and Equipmenl 2,422,626 587,378 10,529 2,999,475 Infrastructure 13.868,885 I ,271.43 5 15.140,320 Total Capital Assets, Being Depreciated 41,972,524 2,798,203 327,695 44,443,032 Less Accumulated Depreciation Land Improvements 813,736 243,423 1,057,159 Buildings 4,156,915 467,631 4,624,546 Vehicles 1,874,573 333,646 273,650 1,934,569 Machinery and Equipment 1,313,176 199,921 10,529 1,502,568 Infrastructure 3,940.966 373,499 4,314,465 Total Accumulated Depreciation 12.099.366 \.618,\ 20 284,179 13,433,307 Total Capital Assets, Being Depreciated, Net 29,873,\58 1,180,083 43.516 31,009,725 Governmental Capital Assets. Net $ 38,757 ,534 $ 1,180,083 $ 43,516 $ 39,894.101 15 NOTE 5: NOTE 6: NOTE 7: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 CAPITAL ASSETS (Continued) DepreciatIOn expense was charged to programs of the City as follows: Governmental Activities General Government Planning and Development Police Public Works Parks and Recreation $ 136,088 3,654 207,195 538,229 732,954 Total $ 1.618.120 LONG- TERM DEBT Following is a summary oflong-terrn debt transactions of the City for the year ended December 31,2004 Balances 12/3 I/03 Balances 12/3 ]/04 Due Within One Year Additions Pavrnents Governmental Activities Compensated Absences $ 588.703 $ 15,792 $ 572,911 $ 14,472 $ Compensated absences are expected to be liquidated primarily with revenues ofthe General Fund. 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 to a maximum of $150,000, automobile, property and physical damage to a maximum of $1 0,000, and workers compensation to a maximum of $5,000 per occurrence. Changes in claims payable were as follows: 2004 2003 Claims Payable, January 1 $ 173,684 $ 192,793 Incurred but not Reported Claims and Adjustments 169,210 77,865 Claims Paid (115.047) (96,974) Claims Payable, December 31 $ 227.847 $ 173.684 16 NOTE 7: NOTE 8: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 RISK MANAGEMENT (Continued) For excess habihty, 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 intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnity, in accordance with the bylaws, any member ofCIRSA against stated liability ofloss, to the limit of the financial resources ofCIRSA. It is also the intent of the members to have ClRSA provide continuing stability and availability of needed coverages at reasonable costs. All income 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 nsks ofloss, including employee health insurance. 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% oftheir compensation to the Plan. During the year ended December 31, 2004, the City and employees made contributions to the Plan of$341,544 and $407,696, 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 investments at December 31, 2004, of $1 ],647,014 are managed by Charles Schwab 17 NOTE 8: NOTE 9: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 RETIREMENT COMMITMENTS (Continued) Department Head Pension Plan City department heads participate in a multiple-employer defined contribution pension plan upon employment with the City 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, 2004, the City and employees made contributions to the Plan of $29,904 and $23,923, respectively The City made all required contributions to the Plan. Employees become vested in all contributions to the Plan immediately All ofthe Plan investments are managed by the International City Managers' Association (ICMA). 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 3 I, 2004, the City and employees made contributions to the Plan of $203,321 The City made all required contributions to the Plan. Employees become vested in 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, including revenue raising, 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 in excess of the fiscal year spending 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, representing 3% of qualirying expenditures, as required by the Amendment. At December 31, 2004, the emergency reserve of $600,000 was recorded as a reservation of fund balance in the General Fund. 18 NOTE 9: NOTE 10: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2004 COMMITMENTS AND CONTINGENCIES (Continued) Litigation The City is involved in various lawsuits. The outcome of this litigation cannot be determined at this time. RECLASSIFICATION Effective January 1,2004, the Authority was presented as a discrete component unit of the City, rather than a blended component unit, to better reflect the Authority's separate legal status. This reclassification resulted in a $351,115 decrease to the December 31, 2003 fund balances and net assets of the City. 19 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES CITY OF WHEAT RIDGE, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2004 OPEN POLICE SENIOR MUNICIPAL SPACE INVESTIGATION CENTER COURT ASSETS Cash and Investments $ 1J2,773 $ 77,744 $ 44,567 $ 79.497 Rcceivables Accounts Intergovernmental 209,462 ---.- TOTAL ASSETS $ _ _ 3W.J1. $ __ ._.c 71,744 $ _44,567 $ ~. 7~497_ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable $ $ $ 109 $ 3,981 Due to Other Funds 162 ---- - ~- TOTAL LIABILlTlES 271 3,981 ~ ---- FUND BALANCES Reserved for Encumbrances 77, 182 18,950 13,000 10.935 Reserved for Open Space and Parks 245.053 Reserved for Police Investigations 58,794 Reserved for Richards/Hart Estate Reserved for Hotel/Motel Capital and Police 1Jnreserved, reported in Special Revenue Funds 31.296 .- 64.581 TOTAL FUND BALANCES 322,235 77,744 44,296 75.516 - ~~ ----- TOTAL LIABILITIES AND FUND BALANCES $ ~2V35 $ ~_77,7~ $ __~_44,567 $ _ _ 79,492. See the accompanying Independent Auditors' Report. 20 RICHARDS! HART CONSERVATION BAUGH HOTEU IMPROVEMENT TRUST HOUSE MOTEL TOTALS - $ 55.098 $ 314,585 $ $ 166.461 $ 850,725 12,829 12.829 209,462 $ 55,098 $ - 314,5lli. $ $ 179,290 $ _~_1073.016. $ $ $ $ $ 4,090 9,760 9,922 --- 9,760 14.012 2.834 17,470 140,371 287,355 532,408 58,794 52,264 52,264 179,290 179,290 95,877 55.098 304,825 ---,.--- 179,290 1,059,004 $ 55,098 $ 314,585 $ $ 179,290 $ 1,073,016 --------..---- ------ CITY OF WHEAT RIDGE. COLORADO COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 3 I, 2004 OPEN POLlCE SENIOR MUNICIPAL SPACE INVESTIGA nON CENTER COURT -. -~ - --.---- REVENUES Taxes $ $ $ $ Intergovernmental 1,014,916 Charges for Services Fines and Forfeitures 29,363 Interest 291 680 382 1,409 Miscellaneous 44,044 16,720 _u_ TOTAL REVENUES 1.059,251 680 __--.----! 7,102.. 30,772 EXPENDITURES Currenl General Government 26,534 Police 39,709 Parks and Recreation 353,442 5,277 Capital Outlay -- TOTAL EXPENDITURES 353,442.. 39,709 5,277 ~,5}.i. -- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 705,809 (39,029) 11,82~ 4,238 OTHER FINANCING SOURCES Transfers Out (615,000) TOTAL OTHER FINANCING SOURCES (615,00.22 NET CHANGE IN FUND BALANCES 90,809 (39029) 11,825 4,238 FUND BALANCES, Beginning ____ 231,426 _~I6,773 32,471 ~J278 FUND BALANCES, Ending $ 322,235 $ 77 0244 $ __ 44,296 $ 75,516 --- See the accompanying Independent Auditors' Report. 21 RICHARDS! HART CONSERVATION IMPROVEMENT TRUST $ 55,098 $ 314,585 $ $ _.22,098 $ _]14,582 $ BAUGH HOUSE HOTEL! MOTEL $ 166.461 $ TOTALS 850.725 12,829 12,829 209,462 $ 179,290 $ 1,073,016 CITY OF WHEAT RIDGE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 3 I, 2004 OPEN POLICE SENIOR MUNICIPAL SPACE INVESTIGATION CENTER COURT REVENUES -'---- Taxes $ $ $ $ Inlergovernmental 1,014,916 Charges for Services Fines and Forfeitures 29,363 Interesl 291 680 382 1,409 Miscellaneous 44,044 16,720 ---- ---- TOTAL REVENUES 1,059,25 I 680 --.17,102 30,772 EXPENDITURES Current General Governmenl 26,534 Police 39,709 Parks and Recreation 353,442 5,277 Capital Outlay --~- TOTAL EXPENDITURES 353,442 39,709 5,277 _ 26,5.Ji. EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 7.05,809 (39,029) 11,825 4,238 -- OTHER FINANCING SOURCES Transfers Out (615,0.0.0) ---- -~ TOTAL OTHER FINANCING SOURCES (615,.0.0.0) ----- ----- NET CHANGE IN FUND BALANCES 9.0,8.09 (39..029) 11,825 4,238 FUND BALANCES, Beginning 231,426 116,773 32,471 __71,278 ~'-'- FUND BALANCES, Ending $ 322,235 $ 77,744 $ 44,296 $ .. 75,516 See the accompanying Independent Auditors' Report. 21 13,425 13,425 9,939 9,939 45,159 $ _..15,098 $ 292,220 292,220 (I.04~ 5,417 5,417 48,294 (216) (1,045) 48,078 _____ (216) }05,870 ~(18,078) 304,825 $ 256,109 26,534 295,818 664,364 5,417 256.109 992,133 ~9~Q43) u 710,98_8 (615,216) (615,216) (29,043) 95,772 208,333_ __963,232 $ 179,~90 $ ----.1.,~9,004 CITY OF WHEAT RIDGE, COLORADO OPEN SPACE BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2004 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Intergovernmental $ 1.055,000 $ 1,014,916 $ (40,084) Interest 4,000 291 (3,709) Miscellaneous 44,044 44,044 TOTAL REVENUES 1,059,000 ] ,059,251 251 '-~ EXPENDITURES Current Parks and Recreation 410.000 367,186 42,8]4 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 649.000 692,065 43,065 OTHER FINANCING SOURCES (USES) Transfers Out (615,000) (615,000) TOTAL OTHER FINANCING SOURCES (USES) (615.000) (615,000) NET CHANGE IN FUND BALANCE, Budgetary Basis $ 34,000 77,065 $ 43,065 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (63,438) Current Year 77.182 TOTAL ADJUSTMENTS 13,744 NET CHANGE IN FUND BALANCE, GAAP Basis $ 90,809 See the accompanying Independent Auditors' Report. 22 CITY OF WHEAT RIDGE. COLORADO POLICE INVESTIGATION BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I, 2004 V ARlANCE ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Interest $ 1,000 $ 1,000 $ 680 $ (320) Miscellaneous 5,000 5,000 (5.000) ~- TOTAL REVENUES 6,000 6,000 680 (5,320) EXPENDITURES Current Police 50,000 93,122 58,659 34,463 NET CHANGE IN FUND BALANCE $ (44,000) $ (87,122) (57,979) $ 29,143 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year Current Year ]8,950 TOTAL ADJUSTMENTS 18,950 --- NET CHANGE IN FUND BALANCE, GAAP Basis $ (39,029) See the accompanying Independent Auditors' Report 23 CITY OF WHEAT RIDGE, COLORADO SENIOR CENTER BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I, 2004 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL ~egative) - REVENUES Interest $ 200 $ 382 $ 182 Miscellaneous 18,700 16,720 (1,980) TOTAL REVENUES 18,900 17,102 (1,"798} EXPENDITURES Current Parks and Recreation 31,100 18,277 12,823 .- NET CHANGE IN FUND BALANCE $ ~ (12,200) (I,1?5) $ _11,025 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year Current Year 13,000 TOTAL ADJUSTMENTS 13,000 NET CHANGE IN FUND BALANCE, GAAP Basis $ ] 1,825 See the accompanying Independent Auditors' Report. 24 CITY OF WHEAT RIDGE, COLORADO MUNICIPAL COURT BUDGETARY COMPARlSON SCHEDULE Year Ended December 31, 2004 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Fines and Forfeitures $ 38,000 $ 29,363 $ (8,637) Interest 1,500 ],409 (91) TOTAL REVENUES 39,500 30,772 (8,728) EXPENDITURES Current General Government 64,475 37,469 27,006 NET CHANGE IN FUND BALANCE $ (24,975) (6,697) $ 18,278 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year Current Year 10.935 TOTAL ADJUSTMENTS 10,935 NET CHANGE IN FUND BALANCE, GAAP Basis $ 4,238 See the accompanying Independent Auditors' Report. 25 CITY OF WHEAT RIDGE, COLORADO RICHARDS/HART IMPROVEMENT BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2004 ORIGINAL V ARlANCE AND FINAL Positive BUDGET ACTUAL _(Negative) REVENUES Intergovernmental $ 10,000 $ 10,522 $ 522 Charges for Services 21,100 12,090 (9,010) Interest 900 752 (148) TOTAL REVENUES 32,000 23,364 (8,636) EXPENDITURES Current Parks and Recreation 24,565 13,403 ]1)62 NET CHANGE IN FUND BALANCE, Budgetary Basis $ 7,435 9,961 $ 2,526 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (2,856) Current Year 2,834 TOTAL ADJUSTMENTS (22) NET CHANGE IN FUND BALANCE, GAAP Basis $ 9,939 See the accompanying Independent Auditors' Report. 26 CITY OF WHEAT RIDGE, COLORADO CONSERV AT/ON TRUST BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I, 2004 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Intergovernmental $ 275.000 $ 288,059 $ 13,059 Interest 4.000 3,116 (884) TOTAL REVENUES 279,000 291,175 12,175 EXPENDITURES Current Parks and Recreation 455,000 301,155 ] 53,845 NET CHANGE IN FUND BALANCE, Budgetary Basis $ ( 176,000) (9,980) $ ]66,020 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (8,535) Current Year 17,470 TOTAL ADJUSTMENTS 8,935 NET CHANGE IN FUND BALANCE, GAAP Basis $ (1,045) See the accompanying Independent Auditors' Report. 27 CITY OF WHEAT RIDGE, COLORADO BAUGH HOUSE BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I, 2004 VARIANCE ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Intergovernmental $ 75,000 $ 75,000 $ 53,71I $ (21,289) Interest 200 200 (200) Miscellaneous 25,000 25,000 (25,000) TOTAL REVENUES 100,200 100.200 53,71 I (46,489) EXPENDITURES Capital Outlay 100,000 100,000 4,666 95,334 EXCESS OF REVENUES OVER 200 200 49,045 48,845 EXPENDITURES OTHER FINANCING USES Transfers Out (216) (216) NET CHANGE IN FUND BALANCE Budgetary Basis $ 200 $ (16) 48,829 $ 48,845 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (751) Current Year TOTAL ADJUSTMENTS (751) NET CHANGE IN FUND BALANCE, GAAP Basis $ 48,078 See the accompanying Independent Auditors' Report. 28 CITY OF WHEAT RIDGE, COLORADO HOTEL/MOTEL BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I, 2004 ORIGINAL V ARJANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Taxes $ 255,000 $ 224,906 $ (30,094) Interest 7,200 2,160 (5,040) TOTAL REVENUES 262,20Q.. 227,066 (35,134) EXPENDITURES Police 406,233 256,1 09 150,124 NET CHANGE IN FUND BALANCE $ (144,033) $ (29,043) $ 114,990 See the accompanying Independent Auditors' Report. 29 CITY OF WHEAT RIDGE, COLORADO CAPITAL PROJECTS BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I. 2004 VARIANCE WITH FINAL ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Taxes $ 5, I 70,968 $ 5, I 70,968 $ 5,203,070 $ 32,1 02 Intergovernmental 40,000 184,912 (184,912) Interest 35,000 35,000 36,021 1,021 Miscellaneous 10,000 10,000 34,229 24,229 TOTAL REVENUES 5,255,968 5,400,880 5,273,320 (127,560) EXPENDITURES Capital Outlay 3,560,000 3,394,912 2,516,604 878,308 TOTAL EXPENDITURES 3,560,000 3,394,912 2,516,604 878,308 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,695,968 2,005,968 2,756,716 750,748 OTHER FINANCING SOURCES (USES) Transfer Out (1,980,467) (1,980,467) (1,980,467) TOTAL OTHER FINANCING SOURCES (USES) (1,980,467) (1,980,467) (1,980,467) NET CHANGE IN FUND BALANCE, Budgetary Basis $ (284,499) $ 25,501 776,249 $ 750,748 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (640,942) Current Year 839,317 TOTAL ADJUSTMENTS 198,375 NET CHANGE IN FUND BALANCE, GAAP Basis $ 974,624 See the accompanying Independent Auditors' Report. 30 CITY OF WHEAT RIDGE, COLORADO WHEAT RIDGE URBAN RENEWAL AUTHORITY BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2004 VARIANCE ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Taxes $ 291,170 $ 280,000 $ 291.170 $ 11,170 Interest 2,000 3,043 1,043 TOTAL REVENUES 291,170 282,000 294,213 12.213 EXPENDITURES Current Planning and Development 420,214 454,900 420,214 34,686 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES ( 129,044) (172,900) (126,001) 46,899 OTHER FINANCING SOURCES (USES) Transfers In 200,000 250,000 (250,000) Transfers Out (200,000) (250,000) 250,000 TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE $ (129,044) $ (172,900) $ (126,00]) $ 46,899 See the accompanying Independent Auditors' Report. 31 SUPPLEMENTARY INFORMATION The ublic re ort burden for this information collection ]s estimated to avera e 380 hours annuall . Financial Planning 02/01 Fonn # 350-050-36 City or Counly' CITY OF WHEAT RIDGE LOCAL HIGHWAY FINANCE REPORT YEAR ENDING December 2004 This ]nfonnation From The Records Of CITY OF WHEAT RIDGE Prepared By: LINDA STENGEL Phone: 303-235-2817 I. DISPOSITION OF HIGHW A Y -USER REVENUES A V AILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM A. Local Motor-Fuel Taxes B. Local Motor-Vehicle Taxes C. Receipts from State Highway- User Taxes D. Receipts from Federal Highway Administration 2. 3. B. C. D. B. Total Recei ts 4 529 577 C. Total Disbursement 4 529 577 E. Reconciliation o FORM FHWA-536 (Rev.Ol-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 32 LOCAL HIGHWAY FINANCE REPORT STATE. Colorado YEAR ENDING (mm/yy): December 2004 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL A.3. a. 40113 5000 III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL HIGHWAY SYSTEM OFF NATIONAL HIGHWAY SYSTEM b TOTAL A.1. omments: - - - - - -- - -- -- o o 287 333 599 858 887 191 887 191 o o 287 333 599 858 887191 887191 forward to a e 1 d. FORM FHWA-536 (Rev.12-96) PREVIOUS EDITIONS OBSOLETE 33