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HomeMy WebLinkAbout2005 City of Wheat Ridge 2005 Financial Statements Family Oriented - Residential Community ~ ..... ct ~ ..... S e ~ \3 ilr~ sr ... .... II i-fI';' ~ ~ ..... ~ ~ - ..----- :! ~ Vision 2020 ':':":'h' o , . II ~ ~ * ~ ;:::::=-: ::::- ~ , ~ I I ~ I I ::::::: I t:J ~ I I . . ~ \jo- . ~ ~ . ~ ~ ~ '" I . . . :lj;~/I' .1_, ';-~";-;'___,;._ :~:',:~2t:';;:{~~ I I Quality Retail _ Great Access _ Active Lifestyle ----t~ &C~___~_~anh()E~~~_~_()~pa!ly. L~_~_ I c'l1lfl,d ['lIhlic -\u.'ln,I,'1l1, ^prII 7, ::'006 Honorable Mayor and Members of the CIty Council City of Wheat Ridge Wheat Ridge. Colorado We have audited the financIal statements of the CIty of Wheat Ridge (the "CIty'") for the year ended December 31 2005, and have issued our report thereon dated AprIl 7, 2006 ProfessIOnal standards reqlllre that we provIde you WIth the followmg mformalIon related 10 our audit. Our Responsibility under Generally Accepted Auditing Standards As stated m our engagement letter, our responsibility, as described by professional standards, IS to plan and perform our audit to obtain reasonable. but not absolute. assurance about whether the financIal statements are free of materIal misstatement. Because an audit is designed to provide reasonable, but not absolute. assurance and because we dId not perform a detailed exammatIOn of all transactIOns, there IS a rIsk that material misstatements or noncomplIance may exist and not be detected by us. In addItIon. an audit IS not designed to detect immaterIal misstatements or VIOlatIOns of laws or regulations that do not have a direct and materIal effect on the financial statements. As part of our audit. we considered the mternal control of the CIty ~uch conSIderatIOns were for the purpose of determmmg our audIt procedurcs and not to provIde any assurance concernmg such mternal control Significant Accounting Policies Management has the responsibIlIty 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 accountmg polIcIes and their applicatIOn. The slgmficant accountmg policies used by the CIty are described Il1 Note I to the finanCIal statements_ We noted no transactions entered into by the CIty dUrIng the year that were both slgmficant and unusual. and of WhiCh, under profeSSIOnal standards, we arc reqUIred to Il1fonn you, or transactIOns for whIch there IS a lack of authOrItatIve gUIdance or consensus. Accounting Estimates Accounting estimates are an integral part of the finanCial statements prepared by management and are based on management's current Judgments Certain accountmg estImates are particularly sensitive becausc of their slgmficanee to the financial statements and because of the possibilIty that future events affectll1g them may dIffer slgmficantly from management's current judgments. We evaluated the key factors and assumptions used to develop the estImates 111 determll1ing that they arc reasonable in relation to the financial statements taken as a whole ~4()O E Crcscent Parkway. 'luIte 600. CJI"Cenwood Villagc. CO XOl11 . (720) 52XA306 Fax (720) 52~-4307 Significant Audit Adjustments For purposes of this letter. professIOnal standards define a significant audit adjustment as a proposed correctIOn of the financial statcments that. III our Judgment, may not have been detected except through our audltll1g procedures. We provided management with a schedule of audit adjustments An audIt adjustment mayor may not IIldlcate matters that could have a slgl1lficant effect on the City's finanCial reportll1g process (that IS, cause future financial statements to be materially misstated). Management has determllled that the effects of the uncorrected mIsstatements are lInmatenal, both indIVIdually and III the aggregate, to the financial statements taken as a whole. In our Judgment, none of the adjustments \\e proposed. whether recorded or unrecorded by the City, either individually or in the aggregate. IIldlcate matters that could have a significant effect on the City's finanCial reporting process Disagreements with Management F or purposes of thIS letter, profeSSIOnal standards define a disagreement WIth management as a matter, whether or not resolved to our satIsfaction, concefl1l11g a finanCIal accountlllg, reportll1g, or audltlllg matter that could be slgl1lficant to the 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 audltlllg and accountlllg matters. snl1llar to obtamll1g a "second opll1lOn" on certalll SItuations. If a consultatIOn involves the application of an accountll1g principle to the City' s financial statements or a determll1atlon of the type of auditors' opll1lOn that may be expressed on those statements. our profeSSIOnal standards require the consultll1g accountant to check WIth us to detennllle that the consultant has all the relevant facts. To our knowledge. there wcrc no such consultations With other accountants. Issues Discussed Prior to Acceptance of Independent Auditors We generally discuss a vanety of matters, lI1cluding the application of accountll1g 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 acceptlllg the engagement. Difficulties Encountered in Performing the Audit We encountered no Significant difficulties while performll1g our audit. Other Information Sales Tax System As mentioned last year, the CIty contll1ues to encounter problems WIth the HMS sales tax system. For example, the system is unable to report year-to-date information on sales tax collections. In addItIon, It IS our understanding that the City IS expecting to expand use of the system to collect public improvement fees. We encourage the City to continue to mOl1ltor the system defiCIenCIes and report to the vendor It may also be beneficial to pursue other systems that may provide better system capabilities and better vendor support. Conclusion We would like to thank Mary Cavarra, Patnck Goff, Linda Stengel, and the CIty staff for theIr assistance and cooperation during the audit. Everyone at the City was very helpful. 2 This report IS Intended solely for the informatIon and use of the CIty Council and management of the City of Wheat Ridge. and IS not intended to he and shoulclnol he used hy anyone other than these speCIfied partIes. Very truly yours, ~(~~?u- Swanhorst & Company LLC 3 CITY OF WHEAT RIDGE, COLORADO FINANCIAL STATEMENTS December 31, 2005 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 Notes to Financial Statements 6 - 16 Required Supplementary Information Budgetary Companson Schedule - General Fund 17 Budgetary Comparison Schedule - Recreation Center Operating Fund 18 Notes to Required Supplementary Information 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 CITY OF WHEAT RIDGE, COLORADO PRINCIPAL CITY OFFICIALS December 3 I, 2005 MAYOR Jerry DiTullio CITY COUNCIL District I District 2 Karen Berry Terry Womble Dean Gokey Wanda Sang CITY CLERK MUNICIPAL JUDGE CITY TREASURER CITY ATTORNEY CITY MANAGER DEPUTY CITY MANAGER ACCOUNTING SUPERVISOR DIRECTOR OF COMMUNITY DEVELOPMENT DIRECTOR OF PARKS & RECREATION DIRECTOR OF PUBLIC WORKS CHIEF OF POLICE HUMAN RESOURCE MANAGER PURCHASING AND CONTRACTING AGENT District 3 Karen Adams Mike StItes Pam Anderson Christopher Randall Mary Cavarra Gerald Dahl Randy Young Patrick Goff Linda Stengel Alan White Joyce Manwaring Timothy Paranto Daniel G. Brennan Karen Croom Linda Trimble District 4 Lena Rotola Larry Schulz FINANCIAL SECTION - - __~ & r" __Swanh~rst &Co!!!.P-~!l.Y__~~_~__ "- "'"' Q- I : J r I II' d I' 11 hi ~ '- -\, l L ) \Jill. 1111 .; 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, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Wheat Ridge, Colorado, as of and for the year ended December 31,2005, which collectively comprise the basic financial statements of the City of Wheat Ridge, Colorado, 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 ba~is 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, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Wheat Ridge, Colorado, as of December 3 l, 2005, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. - The management's discussion and analysis and required supplementary information listed in the table of contents are not a required part of the basic financial statements but are 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 supplemental information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the 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. ~{ CMf~ ~l.& April 7, 2006 R400 t Crescent Parkway. SUIte 600. Greenwood Village. CO XOl \ I. (720) 52~-4306 Fax (no) 52~-43117 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 ended December 31, 2005 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 2005 by $57 8 million (net assets). Of this amount, $14.8 million (unrestricted net assets) may be used to meet the CIty'S ongoing oblIgations to citIzens and credItors. · At the close of fiscal year 2005, the City of Wheat Ridge's governmental funds reported combined ending fund balances of$16.9 million, an increase of$3 8 million in comparIson with the pnor year. Approximately 91 %, $15.5 mIllIon is available for spending at the government's dIscretion (unreserved fund balance) · At the end of the fiscal year 2005, unreserved fund balance for the general fund was $6.6 mIllion, or 34% of total general fund expenditures. · General fund actual revenues were $4.1 million more than final budgeted revenue for the fiscal year 2005 and actual expenditures were $1.9 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 umt (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 of 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 of activities presents information showing how the City of Wheat Ridge's net assets changed during fiscal year 2005. 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 eamed 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, community 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 governrnent-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 $57,767,534 at the close of the 2005 fiscal year. By far the largest portion of the City of Wheat Ridge's net assets (72%) 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, RichardsIHart estate, hotel/motel police actIvities, government b access channel and emergency reserves). The remammg balance of unrestricted net assets ($14,767,240) 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 T otalliabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets Governmental Activities 2005 2004 $18,944,942 $14,740,570 $41,539,717 $39,894,101 $60,484,659 $54,634,671 $695,518 $572,911 $2,021,607 $1,640,162 $2,717,125 $2,213,073 $41,539,717 $1,460,577 $14,767,240 $57,767,534 $39,894,101 $1,661,958 $10,865,539 $52,421,598 Changes in Net Assets Governmental activities. . Governmental-type Activities increased the CIty'S total net assets by $5.3 million. . A key element of the increase in total net assets was the increase in the City's sales and use tax rate from 2% to 3% effectIve January 1,2005. c City of Wheat Ridge Changes in Net Assets Governmental Activities 2005 2004 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 $4,034,209 $1,391,005 $1,532,131 $693,131 $15,101,919 $2,423,406 $1,448,767 $1,400,272 $390,869 $486,268 $28,901,977 Total revenues $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 Expenses General Government Community Development Police Public Works Parks and Recreation Total expenses Increases in net assets Net assets, beginning Net assets, endinq $7,039,869 $619,148 $6,607,172 $3,631,429 $5,658,423 $23,556,041 $5,345,936 $52,421,598 $57,767,534 $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 . Charges for services increased by over $183,000 primarily due to an mcrease in zoning applicatIOn and plan review fees In fiscal year 2005 These increases can be contributed to the Cabela's/Coors development project and an overall increase in plan review submittals. . Operating grants and contributions decreased by approximately $100,000 primarily due to a decrease in highway user tax revenue. . Capital grants and contributions Increased by over $154,000 due to an increase in Community Development Block Grant (CDBG) revenues In 2005. . A sales and use tax rate increase from 2% to 3% became effective January 1,2005. Sales tax revenues increased by $4,995,649 and use tax revenues increased by $717,158. These increases account for approximately 90% of the total revenue increase from 2004 to 2005 . Franchise tax revenues increased by approximately $124,000 primarily due to an increase m energy costs and therefore in increase in Xcel Franchise fees. . Investment earnIngs increased by 57% compared to 2004 due to an increase in Interest rates and prudent investing. . General Government expenses include budgets for the CIty Treasurer, LegIslative ServIces, Finance, Economic Development, City Manager, City Attorney, City d $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Clerk's Office, Municipal Court, Admimstrative Services, Human Resources, Commumty Support, Risk Management, Sales Tax, Purchasmg and Contractmg, Information Technology and Central Charges. . The General Government budget increased by over $10 million pnmarily due to a $415,000 contnbutlon to Wheat Ridge 2020, mcreases in workers' compensation and medical msurance prenllums, and salary mcreases. . The Police Department budget mcreased by over $492,000 in 2005 primanly due to a new compensation plan for the sworn employees and an increase in staff by ten full- time employees. Expenses and Program Revenues - Governmental Activities L ."""."..,.. ~ General Government Community Development Public Works Parks and Recreation Police [] Expenses . Program Revenues e Revenues by Source - Governmental Activities Use taxes 8.4% Investment Other taxes earnings Miscelleneous Charges for 3D/, 1 4% 1 7% services... . t . 4. D 13.8% uperaling gran s Franschlse and taxes contributions 5 0% 5.5% Capital grants and contributions 5.3% Property taxes 2.4% Sales taxes 52.3% Financial Analysis of the Government's Funds The City of Wheat Ridge uses fund accounting to ensure and dernonstrate comphance 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, outflows, and balances of spendable resources. Such Information is useful In assessing the CIty of Wheat Ridge's financing 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 offiscal year 2005, the City of Wheat Ridge's governmental funds reported combined ending fund balances of $169 mIllion, an Increase of $3 8 mtlhon in comparison WIth the prior year Approximately 91 % of this total amount ($15.5 milhon) constitutes unreserved fund balance, which is aVaIlable for spending at the City's discretion. The remainder of fund balance is reservcd to imhcate that it IS not available for new spending because It has already been committed I) for open space and parks ($493,568),2) for police investigations ($37,905), 3) for Richards Hart Estatc ($55,557), 4) for hotel/motel pohce actiVIties ($150,781), 5) for government access channcl ($122,766) and 6) for state mandated emcrgency reserves ($600,000) f The general fund IS the chief operating fund of the City of Wheat Ridge. At the end of fiscal year 2005, unreserved fund balance of the general fund was $6.6 millIon, while total fund balance reached $7 4 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 34% oftotal general fund expenditures, while total fund balance represents 38% of that same amount. General Fund Budgetary Highlights The original budget was amended by City CouncIl for a total of $2,746,452 in supplemental budget appropriations throughout the 2005 fiscal year. These amendments can be briefly summarized as follows: . $1,275,000 allocated for Youngfield Street Improvement Project . $419,877 allocated for Increase in PolIce staffing and new sworn compensation plan . $415,000 allocated for Wheat Ridge 2020 . $157,691 allocated for Police radio upgrades . $108,002 allocated for upgrades to Channel 8 system . $105,000 allocated for deicing equipment . $75,000 allocated for rights-of-way and noxious weed control . $60,000 allocated for replacement of a Senior Center Van . $46,761 allocated for sales tax Increment and ESTIP payments . $41,978 allocated for the acceptance of various grants . $14,864 allocated for an increase in Senior Center staffing . $10,000 allocated for large item clean up program . $7,000 allocated for City Council training . $6,279 allocated for an environmental clean up . $3,000 allocated for Boards and Commissions apprecIation dinner . $1,000 allocated for recreation center punch cards for Wheat Ridge Fire Department 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, 2005 amounts to $41.5 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 2005 fiscal year totaled $3.4 million and included the following: . Artwork in the amount of $34,295 o Founders Park Sculpture . Land Improvements In the amount of $549,872 o Clear Creek Trail Phase III g o Anderson, Randall, Prospect and Historic Park improvements . Buildings m the amount of $251,132 o Police evidence compound o City Hall, Recreation Center and Senior Center improvements o Anderson Park dugouts . Vehicles in the amount of$284,614 o Police patrol units, Semor Center van, dump truck, parks pickups . Machinery and EqUIpment in the amount of $456,849 o Information technology hardware and software o Council chambers digItal recordmg system o Police radio upgrades o Deicer holding tanks o CIty Hall HV AC upgrades o Anderson and Prospect park equipment . Infrastructure in the amount of $1 ,830,024 o Drainage improvements o Kipling pedestrian Improvements o 46th Avenue - Estes/Carr improvements o Street preventative maintenance City of Wheat Ridge's Capital Assets (net of depreciation) Governmental Activities 2005 2004 Land Artwork Land improvements Buildings Vehicles Machinery and equipment Infrastructure Total Capital Assets $8,879,376 $39,295 $3,860,602 $13,582,527 $1,222,219 $1,719,344 $12.236.354 $41,539,717 $8,879,376 $5,000 $3,582,182 $13,808,853 $1,295,928 $1,496,907 $10.825.855 $39,894,101 Long-term debt. At the end ofthe 2005 fiscal year, the City of Wheat Ridge had total long-term debt outstanding of$695,518 Of this amount, $15,166 is due within one year. This total debt represents compensated absences, which are expected to be liquidated primarily with revenues of the General Fund. h Economic Factors and Next Year's Budgets and Rates Due to increases in assessed property valuations, the CIty of Wheat Ridge temporarily reduced Its mill levy from 1 830 mIlls to 1.786 mills for the 2006 DUrIng the 2005 fiscal year, unreserved fund balance In the General Fund increased to $66 million, a $2.0 increase over 2004 The CIty of Wheat RIdge has appropriated $1 1 million of this arnount for general operating expenses in the 2006 fiscal year budget. The General Fund unreserved fund balance is projected to decrease to $5 7 million by the end of2006 Effective January 1,2006, City Council has unofficially committed $1.5 million a year for five consecutive years to fund the Wheat Ridge 2020 organization. Wheat Ridge 2020 IS a new community-based, nonprofit development corporation created to facIlitate and partner in neighborhood and commercial projects that implement the Neighborhood RevitalIzation Strategy (NRS) adopted by Wheat Ridge City Council in July 2005 The adopted 2006 fiscal year budget IS $34 6 million, an Increase of$7.9 million over 2005. It includes a $25.8 million operating budget and a $78 million capital Investment budget. Much of thIS Increase can be contributed to a $1 0 million contribution to Wheat Ridge 2020, $4.2 mIllion for improvements to Youngfield Street, and an increase in Police Department staffing. - 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 III 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 RIDGE. COLORADO STATEMENT OF NET ASSETS December 31. 2005 PRIMARY GOVERNMENT URBAN RENEWAL GOVERNMENTAL ACTIVITIES AUTHORITY 2005 2004 2005 ASSETS Cash and Investments $ 15179,021 $ 11.925,334 $ 390,728 Receivables Accounts 2,237,747 1,520,201 Property Taxes 707,633 692,624 270,000 Intergovernmental 752,039 600.112 100,000 Accrued Interest 68,502 2.299 Capital Assets, Not Being Depreciated 8,9 I 8,671 8,884,376 Capital Assets, Net of Accumulated Depreciation ~21,046_ 31,009,725 TOTAL ASSETS 60,484,659 54,634,67] 760,728 LIABILITIES Accounts Payable 930,825 468,42 I 28,907 Refundable Deposits 268.631 237,570 Claims Payable 106,308 227,847 Deferred Revenues 715,843 706,324 270,000 Noncurrent Liabilities Due Within One Year 15,166 14472 Due in More Than One Year 680,352 558,439 -- TOTAL LIABILITIES 2,717125 2.213,073 298,907 -- NET ASSETS Invested in Capital Assets. Net of Related Debt 41.539717 39,894,101 Restricted for Open Space and Parks 493,568 627.060 Restricted for Police Investigations 37,905 77,744 Restricted for RichardsfHart Estate 55,557 55.098 Restricted for HotellMotel Police Activities 150.781 179,290 Restricted for Government Access Channel 122,766 122,766 - Restricted for Emergencies 600,000 600,000 Unrestricted 14,767,240 10,865,539 461,821 TOTAL NET ASSETS $ ~7,767,534 $ 52,421 ,598 $ 461,821 The accompanying notes are an integral part of the financial statements. FUNCTIONSIPROGRAMS PRIMARY GOVERNMENT Governmental Activities General Government Community Development Police Public Works Parks and Recreation Total Primary Government COMPONENT UNIT Urban Renewal Authority CITY OF WHEAT RIDGE, COLORADO STATEMENT OF ACTIVITIES Y car Ended December 31,2005 $ PROGRAM REVENUES OPERATING CHARGES FOR GRANTS AND EXPENSES SERVICES CONTRIBUTIONS 7,039,869 $ 162,798 $ 6]9,148 8]8,046 6,607,172 589,425 3,631,429 61,152 1,391,005 5,658,423 2,402,788 23,556,041 $ 4,034,209 $ 1,391,005 144,227 $ $ $ $ GENERAL REVENUES Property Taxes Sales Taxes Use Taxes Franchise Taxes Other Taxes Investment Earnings Miscelleneous TOTAL GENERAL REVENUES CHANGE IN NET ASSETS NET ASSETS, Beginning NET ASSETS, Ending The accompanying notes are an integral part of the financial statements. 2 CITY OF WHEAT RIDGE, COLORADO STATEMENT OF NET ASSETS December 31, 2005 PRIMARY GOVERNMENT URBAN RENEWAL GOVERNMENTAL ACTlVITIES AUTHORITY 2005 2004 2005 ASSETS Cash and Investments $ 15.179.021 $ I I 925.334 $ 390,728 Receivables Accounts 2,237,747 1,520.20 I Property Taxes 707,633 692,624 270,000 Intergovernmental 752,039 600,112 100,000 Accrued Interest 68,502 2,299 Capital Assets, Not Being Depreciated 8,918,671 8,884,376 Capital Assets, Net of Accumulated Depreciation 32,621,046 _~31,009,725 TOTAL ASSETS 60,484,659 54,634,671 760,728 LIABILITIES Accounts Payable 930,825 468,421 28,907 Refundable Deposits 268,63 I 237.570 Claims Payable 106,308 227,847 Deferred Revenues 715,843 706,324 270,000 Noncurrent Liabilities Due Within One Year 15,166 14472 Due in More Than One Year 680,352 558,439 TOTAL LIABILITIES 2.717.125 2.213,073 298,907 NET ASSETS Invested in Capital Assets, Net of Related Debt 41,539717 39.894,101 Reslricted for Open Space and Parks 493,568 627,060 Restricted for Police Investigations 37,905 77,744 Restricted for RichardslHart Estate 55,557 55.098 Restricted for Hotel/Motel Police Activities 150,781 179,290 Restricted for Government Access Channel 122,766 122,766 Restricted for Emergencies 600,000 600,000 Unrestricted 14,767,240 10,865,539 461,821 TOTAL NET ASSETS $ 57,767,534 $ 52,42 I ,598 $ 461,821 The accompanying notes are an integral part of the financial statements. FUNCTIONSIPROGRAMS PRIMARY GOVERNMENT Governmental Activities General Government Community Development Police Public Works Parks and Recreation Total Primary Government COMPONENT UNIT Urban Renewal A ulhorit) CITY OF WHEAT RIDGE, COLORADO STATEMENT OF ACTIVITIES Year Ended December 31, 2005 PROGRAM REVENUES OPERATING CHARGES FOR GRANTS AND EXPENSES SERVICES CONTRIBUTIONS 7,039,869 $ 162,798 $ 619,148 818,046 6,607,172 589,425 3,631,429 61,152 1,391,005 5,658,423 2,402,788 23,556,041 $ 4,034,209 $ 1,391,005 144,227 $ $ $ $ $ GENERAL REVENUES Property Taxes Sales Taxes Use Taxes Franchise Taxes Other Taxes Investment Earnings Miscelleneous TOTAL GENERAL REVENUES CHANGE IN 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 RENEWAL AUTHORlTY 2005 CAPlT AL GRANTS AND TOTAL GOVERNMENTAL ACTIVITIES CONTRIBUTIONS 2005 2004 $ $ (6.877.071 ) $ (5,749,340) $ 198.898 166.433 t6,017.747) (5.437.931 ) (2, I 79,272) (2,266,383) ___1)32,13] (1,723,504) (1 40~)19) ----~ $ 1 ,532, 131 (16,598,696 ) (14,690.540) $ (144,227) 693,131 677.888 275,084 15,101,919 10,106,270 100,000 2,423,406 1,706.248 1 448,767 1,324,695 1.400.272 1.363 477 390,869 248.936 5,850 486.268 426.856 ._~ 21,944,632 15.854.3 70 380,934 5,345,936 1,163,830 236,707 52,421,598 51,257,768 225,114 $ 57,767,534 $ 52,421 ,598 $ 461,821 CITY OF WHEAT RIDGE, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2005 RECREATION CENTER CAPITAL GENERAL OPERATING PROJECTS ASSETS Cash and Investments $ 5,635,711 $ 2,5] 9,628 $ 6,197,493 Receivables Accounts 2,208,884 587 11.311 Property Taxes 707,633 Intergovernmental 395,797 188,437 Accrued Interest 15,073 53,429 Due From Other Funds TOTAL ASSETS $ 8.948,025 $ 2,535,288 $ 6,450,670 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable $ 497,353 $ 42,602 $ 205,640 Refundable Deposits 268,63 ] Due to Other Funds Claims Payable 106,308 Deferred Revenues Property Taxes 707,633 Other 8,210 TOTAL L1AB]L1TIES 1.588,135 42,602 205,640 FUND BALANCES Reserved for Encumbrances Reserved for Open Space and Parks Reserved for Police Investigations Reserved for Richards/Hart Estate Reserved for HotellMotel Police Activities Reserved for Government Access Channel ]22,766 Reserved for Emergencies 600,000 Unreserved, reported in General Fund 6,637,124 Special Revenue Funds 2,492,686 Capital Projects Fund 6,245,030 TOTAL FUND BALANCES 7,359,890 2,492,686 6,245,030 TOTAL LIABILITIES AND FUND BALANCES $ 8,948,025 $ 2,535,288 $ 6,450,670 Amounts reported for governmental activities in the statement of net 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 2005 2004 -- ---.--- $ 826,189 $ 15,179,021 $ 11,925,334 16.965 2,237,747 1,520,201 707.633 692,624 167.805 752,039 600,112 68.502 2,299 9,922 $ 1.010.959 $ 18,944,942 $ 14,750.492 $ 185,230 $ 930,825 $ 468.421 268.631 237.570 9.922 106.308 227,847 707.633 692.624 8,210 13,700 185.230 2,021,607 1.650,084 1,578,313 493,568 493.568 532.408 37,905 37,905 58,794 55.557 55.557 52,264 150,781 150,781 179,290 122,766 122.766 600.000 600,000 6,637,124 4.595,108 87,918 2,580,604 2,650,384 6,245,030 2,731,081 825.729 16,923,335 13,100.408 $ 1,010,959 41,539,717 39,894,101 (695,518) (572,911) $ 57.767,534 $ 52.421,598 CITY OF WHEAT RIDGE, COLORADO STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 3 I, 2005 RECREATION CENTER CAPITAL GENERAL OPERATING PROJECTS REVENUES Taxes $ 20,235,9] 7 $ $ 168,118 Licenses and Permits 877,698 Intergovernmental 1,609,813 10,000 373,349 Charges for Services 799,682 2,039,618 Fines and Forfeitures 450,621 Interest 195,075 81,516 99,107 Miscellaneous 310,026 4,000 89,185 TOTAL REVENUES 24,478,832 2,] 35,134 729,759 EXPENDITURES Current General Government 6,675,589 Community Development 6]4,6]0 Police 6,39] ,650 Public Works 2,996,532 Parks and Recreation 2,655,854 2,202,811 Capital OulIay 2,330,127 TOTAL EXPENDITURES ] 9,334,235 2,202,8 I I 2,330,127 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,144,597 (67,677) (1,600,368) OTHER FINANCING SOURCES (USES) Transfers In 579,650 4,275,000 Transfers Out (4,275,000) TOTAL OTHER FINANCING SOURCES (USES) (3,695,350) 4,275,000 NET CHANGE IN FUND BALANCES 1,449,247 (67,677) 2,674,632 FUND BALANCES, Beginning 5,91 0,64~ 2,560,363 3,570,398 FUND BALANCES, Ending $ 7,359,890 $ 2,492,686 $ 6,245,030 The accompanying notes are an integral part of the financial statements. 4 OTHER TOTAL GOVERNMENTAL GOVERNMENTAL FUNDS FUNDS 2005 2004 $ 252,176 $ 20,656,211 $ 14,738,547 877 ,698 961,332 1,148,782 3,141,944 3,137,044 22,939 2,862,239 2,570,951 36,127 486,748 552,136 15,171 390,869 248,936 46,706 449,917 406,591 1,521,901 28,865,626 22,615,537 38,076 6,713,665 5,883,468 614,610 567,515 334,849 6,726,499 5,975,960 2,996,532 2,686,240 802,60 1 5,661,266 5,167,237 2,330,127 2,323,646 1,175,526 25,042,699 22,604,066 346,375 3,822,927 11,471 4,854,650 2,595,683 (579,650) (4,854,650) (2,595,683 ) (579,650) (233,275) 3,822,927 11,471 1,059,004 13,100,408 13,088,937 $ 825,729 $ 16,923,335 $ 13,100,408 CITY OF WHEAT RIDGE. COLORADO RECONCILlA nON OF TilE STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 3 I 2005 2005 2004 Amounts reported for governmental activities in the statement of activities are different becausc: Net Change in Fund Balances, Governmental Funds $ 3,822,927 $ ] ],471 Capital outlays to purchase or build capital assets are reported in governmental funds as expenditures. However for governmental activities those costs are shown in thc statement of net assets and allocated over their estimated useful lives as annual depreciation expense in the statement of activities. This is the amount by which capital outlay $3 406,786 exceeded depreciation ($] ,703,943) and loss on disposal ($57,227). ],645,6]6 ], ]36,567 Repaymcnls of long-term debt are expenditures in the governmcntal funds. but thc) reduce long-term liabilities in the statement of net assets and do not affect the statement of activities. This amount includes the increase in compensated absences. (] 22,607) 15,792 Change in Net Assets of Governmental Activities $ 5,345,936 $ 1,] 63,830 The accompanying notes are an integral part of the financial statements. 5 OTHER TOTAL GOVERNMENTAL GOVERNMENTAL FUNDS FUNDS 2005 2004 $ 252,176 $ 20,656,211 $ 14,738,547 877,698 961,332 1,148,782 3,141,944 3,137,044 22,939 2,862,239 2,570,951 36,127 486,748 552,136 15,171 390,869 248,936 46,706 449,917 406,591 1,521,901 28,865,626 22,615,537 38,076 6,713,665 5,883,468 614,610 567,515 334,849 6,726,499 5,975,960 2,996,532 2,686,240 802,60 I 5,661,266 5,167,237 2,330,127 2,323,646 1,175,526 25,042,699 22,604,066 346,375 3,822,927 11,471 4,854,650 2,595,683 (579,650) (4,854,650) (2,595,683) (579,650) (233,275) 3,822,927 11,471 1,059,004 13,100,408 13,088,937 $ 825,729 $ 16,923,335 $ 13,100,408 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 3 I, 2005 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Wheat Ridge, Colorado, was mcorporated m August, 1969, and became a home rule city in 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 Governmental Accounting Standards Board (GASB) IS the accepted standard-settmg body for establishing governmental accounting and financial reporting principles. 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 criteria, the City includes the followmg discretely presented component unit in its reporting entity. Wheat Ridge Urban Renewal Authority - The City includes the Wheat RIdge Urban Renewal Authority (the "Authority") withm 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 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 component unit. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. 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 1) charges to customers who purchase, lise, 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. 6 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 3 \, 2005 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds. Major individual funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when 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. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are 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 year are considered to be susceptible to accrual and so have been recognized as revenues of the current year All other revenues 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 payment is due. Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally are followed in the government-wide financial statements 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 governmental 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. 7 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2005 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Contmued) The Recreation Center OperatinK 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. Assets, Liabilities and Net Assets Cash and Investments - Investments are recorded at fair value Receivables - Accounts receivable consIsts primarily of sales and use taxes, lodging tax and other miscellaneous receivables. Interfillld 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 otherfunds and due to other funds because they are short-term in nature Capital Assets-Capital assets, which include property, equipment and infrastructure, are reported in the government-wide financial statements. 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 infrastructure additions but infrastructure assets purchased or donated prior to January 1, 2003, will be capitalized in the future, as allowed by generally accepted accounting principles. The costs ofnorrnal 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 Vehicles, Machinery and 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 wiIl 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 8 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 3 I, 2005 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 mcurred. 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, governmental fund types recognize long-term liabilities only when payment is due. Payments 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 attach as an enforceable lien on property on January I and are levied the following 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 3 I. 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. 9 CITY OF WHEAT RlDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31,2005 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Comparative Data Comparative total data for the prior year has been presented in the financial statements in order to provide an understanding of changes in financial position and operations. However, complete comparative data in accordance with generally accepted accounting principles has not been presented since its inclusion would make the financial statements unduly complex and difficult to read. Certain prior year amounts have been reclassified to conform to the current year presentation. NOTE 2: CASH AND INVESTMENTS At December 3 I, 2005, the City had the following cash and investments. Primary Government Petty Cash $ 2,768 Cash Deposits 7,901,470 Investments 7.274,783 Total $ 15,179,021 Component Unit Cash Deposits $ 339,644 Investments 5 1,084 Total $ 390,728 - 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 on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDP A. PDP A allows the financial institution 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. At December 31,2005, the City and the Authority had bank deposits of $7,837,907 and $239,644, respectively, collateralized with securities held by the financial institutions' agents but not in their name. 10 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2005 NOTE 2: CASH AND INVESTMENTS (Continued) Investments The City and the Authority are required to comply with State statutes which specifY investment instruments meeting defined rating, maturity and concentration risk criteria in which local governments may invest. State statutes do not address custodial risk. The City has further restricted the investments of City funds to the followmg. . U.S Treasury obligations. . Federal Instrumentality Securities. . Prime Commercial Paper . Local Government Investment Pools. . Time Certificates of Deposit or Savings Accounts in state or national banks and state or federally chartered savings and loan which are state approved depositories and are insured by the FDIC The City had the following investments at December 31,2005. Investment Maturities (in Years) S&P Less Fair Investment Type Rating Than I 1-2 3-4 Value Money Market Funds AAAm $ 1,343,270 1.343.270 U. S. Treasury Securities NA 1,084,803 1,084,803 U.S. Agency Securities AAA 905.324 495,155 250,000 1,650,479 Local Government Investment Pools AAAm 3,196.231 3.196,231 Total $ 6,529,628 $ 495,155 $ 250,000 $ 7,274,783 Interest Rate Risk - State statutes limit investments in U.S Agency securities to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. Credit Risk - State statutes limit investments in U.S Agency securities to the highest rating issued by nationally recognized statistical rating organizations ("NRSROs"). State statutes limit investments in money market funds to those with the highest rating issued by NRSROs and with a constant share price, or to money market funds that invest only in specified securities. The City further minimizes credit risk by' limIting investments to the safest types of securities. Pre-qualifYing the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. DiversifYing the investment portfolio so that potential losses on individual securities will be minimized. II CITY OF WHEA T RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2005 NOTE 2: CASH AND INVESTMENTS (ContInued) Investments (Continued) Custodial Credit Risk - At December 31,2005, the City's investments in U.S Agency securities, totaling $1,650,479, are held by the counterparty (broker), but not in the City's name. Concentration of Credit Risk - State statutes do not limit the amount the City may invest in one issuer At December 31,2005, the City's Illvestments in the Federal Home Loan Bank and the Federal Home Loan Mortgage CorporatIOn were 10% and 10%, respectively, of the City's total investments. Local Government Investment Pool - At December 3 I, 2005, the City had $ I ,590,970 and $1,605,261, respectively, invested in the Colorado Local Government Liquid Asset Trust (Colotrust), and the Colorado Surplus Asset Fund Trust (CSAFE). The Authority had $51,084 invested in Colotrust. The Pools are Investment vehicles established for local government entities III Colorado to pool surplus funds. The State Securities Commissioner administers and enforces requirements of creatmg and operating the Pools. The Pools operate similarly to a money market fund and each share is equal in value to $1 00 The Pools are rated AAAm by Standard and Poor's. Investments of the pools are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functIOns. Substantially all securities owned are held by the Federal Reserve Bank in the account maintaIned for the custodial bank. The custodian's internal records identity the mvestments owned by the participating governments. NOTE 4: CAPITAL ASSETS Capital asset activity for the year ended December 31, 2005, is summarized below Balances Balances 12/31/04 Additions Deletions 12/31/05 Governmental Activities Capital Assets, Not Being Depreciated Land $ 8,879,376 $ $ $ 8,879,376 Artwork 5.000 34.295 39.295 Total Capital Assets. Not Being Depreciated 8.884.376 34,295 8.918.671 Capital Assets, Being Depreciated Land Improvements 4,639,341 549,872 5,189,213 Buildings 18,433,399 251,132 18,684,531 Vehicles 3,230,497 284,614 93,578 3,421,533 Machinery and Equipment 2,999,475 456,849 3,456,324 Infrastructure 15.140.320 1.830.024 ] 6.970,344 Total Capital Assets, Being Depreciated 44.443.032 3.372.491 93.578 47.721.945 12 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 3], 2005 NOTE 4: CAPITAL ASSETS (Continued) Balances 12/31/04 Additions Less Accumulated Depreciation Land Improvements 1,057,159 271,452 Buildings 4,624,546 477,458 Vehicles 1,934,569 301,096 Machinery and Equipment 1,502.568 234,412 Infrastructure 4,314,465 419.525 Total Accumulated Depreciation 13,433.307 \,703.943 Total Capital Assets. Being Depreciated, Net 3 1.009,725 1,668.548 Governmental Capital Assets, Net $ 39,894.101 $ 1,702.843 $ Balances Deletions 12/31/05 1,328,611 5,102,004 36,351 2,199,314 1,736,980 4.733,990 36,351 15.! 00.899 57 ,227 32.621.046 57.227 $ 41.539.717 Depreciation expense was charged to programs of the City as follows: General Government $ ] 58,579 Community Development 4,538 Police 188,989 Public Works 577,100 Parks and Recreation 774,737 Total $ 1,703,943 NOTE 5: LONG-TERM DEBT Following is a summary of long-term debt transactions of the City for the year ended December 3],2005, Balances ]2/3 ]/04 Additions Payments Balances ] 2/31 /05 Due Within One Year Governmental Activities Compensated Absences $ 572.911 $ 150.699 $ 28.092 $ 695.518 $ 15,166 Compensated absences are expected to be liquidated primarily with revenues ofthe General Fund. NOTE 6: INTERFUND TRANSFERS Interfund transfers for the year ended December 31, 2005, were as follows: Transfers In Transfers Out Amount General Open Space $ 579,650 Capital Projects General 4.275.000 Total $ 4,854,650 13 NOTE 6: NOTE 7: CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2005 INTERFUND TRANSFERS (Continued) The Open Space Fund reimbursed the General Fund for costs incurred for parks and open space maintenance. The General Fund transferred amounts to the Capital Projects Fund to be used for capital projects. 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; mjuries 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 $ I 0,000, and workers compensation to a maximum of $5,000 per occurrence. Changes in claims payable for the years ended December 31, 2005 and 2004, were as follows: 2005 2004 Claims Payable, January I $ 227,847 $ 173,684 Incurred but not Reported Claims and Adjustments 688,745 169,210 Claims Paid (810.284) (115.047) Claims Payable, December 31 $ 106.308 $ 227.847 For excess liability, property and workers compensation claIms, the City IS mvolved with the Colorado Intergovernmental Risk Shanng 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 ofCIRSA, their employees and officers. It is the intent ofthe members ofCIRSA 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 of CIRSA against 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 income and assets ofCIRSA 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 ofloss, including employee health insurance. 14 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2005 NOTE 8: 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 31,2005, the City and employees made contributions to the Plan of $3 51,714 and $407,228, 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, 2005, of $13,202,319 are managed by Charles Schwab 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, 2005, the City and employees made contributions to the Plan of $35,167 and $24,855, 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 (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 31, 2005, the City and employees made contributions to the Plan of$205,748. 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). 15 CITY OF WHEAT RIDGE, COLORADO NOTES TO FINANCIAL STATEMENTS December 3 I, 2005 NOTE 9: COMMITMENTS AND CONTINGENCIES Tabor Amendment Colorado voters passed an amendment to the State Constitution, ArtIcle X, Section 20, which has several limitatIons, mcludmg 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, mil1levy 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. In November, 2004, voters agreed to allow the City to increase the sales and use taxes rate by I percent beginning January 1,2005, and to allow the City to collect, retam and spend the revenues from such increase without regard to the limitations of the Amendment. The City has established an emergency reserve, representmg 3% of qualifYing expenditures, as required by the Amendment. At December 3 I, 2005, the emergency reserve of $600,000 was recorded as a reservation of fund balance m the General Fund. Litigation The City is involved in various lawsuits. The outcome of this litigatIon cannot be determined at this time. - 16 REQUIRED SUPPLEMENTARY INFORMATION CITY OF WHEAT RIDGE. COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year Ended December 31, 2005 VARIANCE WITH FINAL ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES --.- - -- Taxes $ 15 171,288 $ 15,171,288 $ 20,235,917 $ 5.064.629 Licenses and Permits 779 900 779,900 877,698 97,798 Intergovernmental 1,967,690 2,007,458 1,609,813 (397,645) Charges for Services 1,411,822 1.453,822 799,682 (654,140) Fines and Forfeitures 728,720 728,720 450,62 I (278,099) Inlerest 110,000 110.000 195,075 85,075 Miscellaneous 192,000 150.000 310,026 160,026 --~~- TOTAL REVENUES 20,361.420 20,401.188 24,478,832 4,077.644 EXPENDITURES AND ENCUMBRANCES Current General Government 6,150,961 7,075,956 6,082,820 993.136 Community Development 673,606 673,606 614,610 58,996 Police 6, I 25,839 6.598.1 30 6,39 I ,650 206,480 Public Works 3,210,187 3,514,187 2,996,532 517.655 Parks and Recreation 2,9<J9,82I 2,769,987 2,655,854 114.133 -.-- --- TOT AL EXPENDITURES AND ENCUMBRANCES 19.160,414 20,631,866 18,741,466 1,890,400 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND ENCUMBRANCES J .20 I ,006 (230.678) 5,737,366 5,968,044 ---~ OTHER FINANCING SOURCES (USES) Transfers In 579.650 579.650 579,650 Transfers Out (3,000.000) ( 4,275,000) (4,275,000) - TOTAL OTHER FINANCING SOURCES (USES) (2,420,350) (3,695,350) (3,695,350) NET CHANGE IN FUND BALANCE. Budgetary Basis $ (],2 I 9,344) $ (3,926,028) 2,042,016 $ 5,968,044 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (592,769) TOTAL ADJUSTMENTS (592,769) NET CHANGE IN FUND BALANCE, GAAP Basis $ 1,449,247 See the accompanying Independent Auditors' Report ]7 CITY OF WHEAT RIDGE, COLORADO BUDGETARY COMPARISON SCHEDULE RECREA nON CENTER OPERA nNG FUND Year Ended December 31, 2005 VARIANCE ORIGINAL WITH FINAL AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES ----~ Intergovernmental $ $ 10,000 $ 10,000 Charges for Services 2.079.894 2.039,618 (40.276) Interesl 80,000 81.516 1,5 16 Miscellaneous 4.000 4,000 TOTAL REVENUES 2.159,894 2.135,134 (24.760) EXPENDITURES Parks and Recreation 2,353,600 2.196,955 156,645 TOTAL EXPENDITURES AND ECUMBRANCES 2,353,600 2,196.955 156,645 NET CHANGE IN FUND BALANCE. Budgetary Basis $ (193,706) (61,821) $ 131,885 ADJUSTMENTS TO GAAP BASIS Encum brances Prior Year (5.856) ---- TOTAL ADJUSTMENTS (5,856) NET CHANGE IN FUND BALANCE, GAAP Basis $ (67,677) See the accompanying Independent Auditors' Report 18 NOTE 1: CITY OF WHEAT RIDGE, COLORADO NOTES TO REQUIRED SUPPLEMENTARY INFORMA nON December 3], 2005 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting 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 3], 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 of the City Budgets for the governmental funds have previously been adopted on a non-GAAP basis using the encumbrance method. Beginning January I, 2005, the City utilized the GAAP basis of budgeting. 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. Legal Compliance For the year ended December 31,2005, the Wheat RIdge Urban Renewal AuthOrIty expenditures exceeded the amounts budgeted by $3,727 This may be a violation of State statutes. 19 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES - CITY OF WHEAT RIDGE, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31 2005 OPEN POLICE SENIOR MUNICIPAL SPACE INYESTIGA TION CENTER COURT ASSETS Cash and Investments $ 96.836 $ 38,307 $ 22,333 $ 71,945 Receivables Accounts Intergovernmental 167.805 ~- "---- TOTAL ASSETS $ 264.64 ] $ 38.307 $ 22,333 $ 71,945 LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable $ ]07,132 $ 402 $ 530 $ 5,830 TOTAL LIABILITIES 107.132 402 530 5.830 FUND BALANCES Reserved for Open Space and Parks 157.509 Reserved for Police Investigations 37,905 Reserved for RichardsIHart Estate Reserved for Hotel/Motel Police Activities Unreserved, reported in Special Revenue Funds 2],803 66,] 15 TOTAL FUND BALANCES 157.509 37,905 2],803 66,1 ]5 TOTAL LIABILITIES AND FUND BALANCES $ 264.641 $ ____ 38,307 $ 22,333 $ 7],945 See the accompanying Independent Auditors' Report. 20 RICHARDS/ HART CONSERVATION IMPROVEMENT TRUST HOTEL! MOTEL TOTALS $ 55,557 $ 407,395 $ 133,8]6 $ 826,] 89 ]6,965 16.965 ]67.805 $ 55,557 $ 407,395 $ ]50,78] $ ],010,959 $ $ 7],336 $ $ 185,230 71,336 185,230 336,059 493,568 37,905 55,557 55,557 150,781 ]50.781 87,918 ~-----~,-, 55,557 336.059 150.781 825,729 $ 55,557 $ 407,395 $ 150,781 $ I ,010,959 CITY OF WHEAT RIDGE, COLORADO COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 3 I, 2005 See the accompanying Independent Auditors' Report. 21 RICHARDS/ HART CONSERVATION HOTEL! IMPROVEMENT TRUST MOTEL TOTALS $ $ $ 252,176 $ 252,176 3.33 ] 290,348 1,148,782 10,265 22,939 9,096 36,127 1452 6,027 4,098 15,171 100 46,706 --- 15.048 296,375 265,470 1,521,901 38,076 293,979 334,849 14.589 265,141 802,60 I 14,589 265,141 293,979 1,175,526 459 31,234 (28,509) 346,375 (579,650) (579,650) 459 31,234 (28,509) (233,275) 55.098 304,825 179,290 1,059,004 $ 55,557 $ 336,059 $ 150,781 $ 825,729 - CITY OF WHEAT RIDGE, COLORADO OPEN SPACE BUDGETARY COMPARISON SCHEDULE Year Lnded December 3 I, 2005 OR[GINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Intergovernmental $ 1,081,000 $ 855,103 $ (225,897) Charges for Services 12,674 12,674 Interest 1433 1,433 Miscellaneous 3[,600 31,600 TOTAL REVENUES 1,081,000 900,810 (180,190) EXPENDITURES Current Parks and Recreation 598,000 408,704 189,296 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 483,000 492,106 9,106 OTHER FINANCING (USES) Transfers Out (579,650) (579,650) ~--~ TOTAL OTHER FINANCING (USES) (579,650) ( 579,650) ~- - NET CHANGE IN FUND BALANCE, Budgetary Basis $ (96,650) (87,544) $ 9,106 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (77,182) --~_.- -.- TOTAL ADJUSTMENTS (77,182) NET CHANGE IN FUND BALANCE, GAAP Basis $ (I 64,726) See the accompanying Independent Auditors' Report. 22 CITY OF WHEAT RIDGE, COLORADO POLICE INVESTIGATION BUDGETARY COMPARISON SCHEDlJLE Year Ended December 3 I, 2005 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES ~-- ~ Interest $ 250 $ $ (250) Miscellaneous 5,000 1,031 (3,969) TOTAL REVENUES 5.250 1,031 (4,219) EXPENDITURES Current Police 50,000 21,920 28,080 NET CHANGE IN FUND BALANCE ~~44,750) (20,889) $ 23,861 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (J 8,950) TOTAL ADJUSTMENTS ( 18,950) NET CHANGE IN FUND BALANCE, GAAP Basis $ __ (39,839) See the accompanying Independent Auditors' Report. 23 CITY OF WHEAT RIDGE, COLORADO SENIOR CENTER BUDGETARY COMPARISON SCHEDULE Year Ended December 31 2005 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Interest $ 200 $ 517 $ 317 Miscellaneous 14,300 13,975 (325) TOTAL REVENUES 14,500 14,492 (8) EXPENDITURES Current Parks and Recreati on 27,850 23,985 3,865 NET CHANGE IN FUND BALANCE $ (J 3,350) (9,493) $ 3,857 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year ( 13,000) TOTAL ADJUSTMENTS (13,000) NET CHANGE IN FUND BALANCE, GAAP Basis $ (22,493 ) See the accompanying Independent Auditors' Report. 24 CITY OF WHEA T RIDGE, COLORADO MUNICIPAL COURT BUDGETARY COMPARISON SCHEDULE Year Ended December 31. 2005 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Fines and Forfeitures $ 47,500 $ 27,031 $ (20,469) Interest 1,500 1,644 144 TOTAL REVENUES 49.000 28.675 (20,325) EXPENDITURES Current General Government 74,600 27141 47,459 NET CHANGE IN FUND BALANCE $ (25,600) 1.534 $ 27,134 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year ( 10,935) TOTAL ADJUSTMENTS (10,935) NET CHANGE IN FUND BALANCE, GAAP Basis $ (9,401) See the accompanying Independent Auditors' Report. 25 CITY OF WHEAT RIDGE, COLORADO RlCHARDS/HART IMPROVEMENT BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2005 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (N egative) REVENUES Intergovernmental $ 25,000 $ 3,331 $ (21 ,669) Charges for Services 11,000 10,265 (735) Interest 800 1,452 652 TOTAL REVENUES 36,800 15,048 (21,752) EXPENDITURES Current Parks and Recreation 35,000 14,589 20,411 NET CHANGE IN FUND BALANCE $ 1,800 $ 459 $ (1,341 ) See the accompanying Independent Auditors' Report. 26 CITY OF WHEAT RIDGE, COLORADO CONSERVATION TRUST BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2005 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Intergovernmental $ 333,000 $ 290,348 $ (42,652) Interest 6,027 6,027 TOTAL REVENUES 333,000 296,375 (36,625) EXPENDITURES Current Parks and Recreation 495,000 247,671 247,329 NET CHANGE IN FUND BALANCE, Budgetary Basis $ (162,000) 48,704 $ 2]0,704 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (17,470) TOTAL ADJUSTMENTS (17,470) NET CHANGE IN FUND BALANCE, GAAP Basis $ 31,234 See the accompanying Independent Auditors' Report. 27 CITY OF WHEAT RIDGE, COLORADO HOTEL/MOTEL BUDGETARY COMPARlSON SCHEDULE Year Ended December 31, 2005 ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Taxes $ 220,000 $ 252,176 $ 32,176 Fines and Forfeitures 9,096 9,096 Interest 1,000 4,098 3,098 Miscellaneous 100 100 TOTAL REVENUES 22],000 265,470 44,470 EXPENDITURES Police 338,728 293,979 44,749 NET CHANGE IN FUND BALANCE $ (117,728) $ (28,509) $ 89,219 See the accompanying Independent Auditors' Report. 28 CITY OF WHEAT RIDGE, COLORADO CAPITAL PROJECTS BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2005 VARIANCE WITH FINAL ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Taxes $ 170,000 $ 170,000 $ 168,118 $ (1,882) Intergovernmental 40,000 188,437 373,349 184,912 Interest 50,000 50.000 99,107 49,107 Miscellaneous 10,000 _10,000 89,\85 79,185 TOTAL REVENUES 270,000 418,43? 729,759 311,322 EXPENDITURES Capital Outlay 3,525,000 7,053,700 1,490,810 5,562,890 TOTAL EXPENDITURES 3,525,000 7,053,7OlL 1,490,810 5,562,890 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,255,000) (6,635,263) (761,051) 5,874,212 OTHER FINANCING SOURCES Transfer In 3,000,000 4,275,000 4,275,000 NET CHANGE IN FUND BALANCE, Budgetary Basis $ (255,000) $ (2,360,263 J 3,513,949 $ 5,874,212 ADJUSTMENTS TO GAAP BASIS Encumbrances Prior Year (839,317) TOTAL ADJUSTMENTS (839,317) - NET CHANGE IN FUND BALANCE, GAAP Basis $ 2,674,632 See the accompanying Independent Auditors' Report. 29 CITY OF WHEAT RIDGE. COLORADO WHEAT RIDGE URBAN RENEWAL AUTHORITY BUDGETARY COMPARISON SCHEDULE Year Ended December 3 I 2005 VARIANCE ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES --- Taxes $ 308.000 $ 307.000 $ 375,084 $ 68,084 Interest 2,500 2,500 5,850 3,350 TOTAL REVENUES 310.500 309,500 380,934 71,434 EXPENDITURES Current Community Development 147,200 140.500 144,227 (3,727) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 163.300 169.000 236,707 67,707 OTHER FINANCING SOURCES Proceeds From Sale of Walgreens Project 180,000 180.000 (180,000) TOTAL OTHER FINANCING SOURCES 180,000 180.000 (180,000) NET CHANGE IN FUND BALANCE $ 343,300 $ 349.000 $ 236,707 $ (112,293) ~----_._--- See the accompanying Independent Auditors' Report. 30 SUPPLEMENTAL INFORMA nON or County of Prepared By' Phone: Financial Planning 02/01 Fonn # 350-050-36 The ublic re oft hurden for thIs information collection is estimated to avera e 380 hours annuall LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM A. Local Motor-Fuel Taxes B. Local Motor- V ebicle Taxes e. Receipts from State Higbway- User Taxes D. Receipts from Federal Higbway Administration - I 2. 3 4 5 a. 2. b. 3. c. 4 5 6. B. e. D. B. Total Recei ts 5 686 106 C. Total Disbursement 5 686 106 E. Reconciliation o FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 31 HIWA YUSERST AXREPORT2005.xls LOCAL IIIGHW A Y FINANCE REPORT STATE. Colorado YEAR ENDING (mm/yy): December 2005 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL A.3. III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL HIGHWAY SYSTEM OFF NATIONAL HIGHWAY SYSTEM b TOTAL d. ~---------- o o 779,305 1 184334 I 963 639 1965141 A.I. (Ca FORM FHWA-S36 (Rev.I-OS) PREVIOUS EDITIONS OBSOLETE 32