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Home My WebLink About1969 BUiJGET HEP0ftT CITY ')F l'IHEAT REJGE E'Y 1969 ,~) ~ 0"1 ~v- IlEI\:' ~HrlL F'U!'~) REVENUE '~L":)SL~IC.,,TIvl':,:> .i,;; l;;:iy U~ ers Tax r- rorerty Taxe~ ua11~ Taxes l~i,;,,-r..tt e Tax.ell Fr'mchi~. 'l'axes-.'ub,e,.r."o VCcu!>;.tior,,,1 Tif.X-: el. ~ '. Li1uor Licanlles ;~u~inell!! Licenll~lI-C'ig!!. , ~r:cj, t!! Finell ~:~P'SrDJ TLrC~,S :"'flgi~l..tive & Legal i ',UJ:'1iciDal Court Oi ty Clerk Recordll & Slectionll In~u~~nce & Bond8 Ci t'T Tr".. !!urer Ad~un, Servicell & Supply Per:-.onnel Jurchaeing Traf1ic otr.""t ''''JOI.int Police "ubUc S.rvice!l- otreO!t Li;;hting En~inlf~rin~ Building Inllpection E0T. IillCEI~.T;j -0- -0- 1" 000 ~~ (), . -0- 9,000. 1,800. 250. 1,000. 2,750. ":J-I()IV I k k N .t{,iC,7 32,800. BUDrrET 1,500. 500. 2,200.--1" 1,000 1,000. -0- 200. ---- 900. 3,000. -0- -0- 15,000. P , 8,000. -0- 500. I, 32,800 / J 4\ I, J .'J. . ,A..ONE City Treallurer REVENUE Acc t . Code 312 314 331 332 333 340 DISBURSE11ENI'S 410 411 413 415 421 430 442 450 472 4/3 47:- 47ti 47'j 483 494 i ,.". , I, '-:VJ Leg. & Leg3.1 Attorney R~ti'\iner $1. JO I _'<l,-(! _ 7' (, <> . prosecutioft & Expense 750 V ~:> Munictpal t6urt. -t.._, , Judge, F'ee 500 v Clerk (Inc. 7'k PERA $60 Blue Cross) 1,140 /' City Cled - 7:!! ,Salari \ 1,(:S5 ~PERA, Bl1Jf:'. cross.) 1 '~9q · ..1- 'Records. ',leehon' -1-'; "r.-t',46b--~ Part-time ~lerk 100 ,/ ~ Planner (Inc. 7% PERA, Blue Cross) 1,400 Finance City Trecsurer Part-time Part-timE Bookkeeper Clerk (lllc. 7'k PERA, Blue Cross) Admini~t-ative Services Salary ()cferr"d) (1,375) ServiceE and Supplies 600 ,/ Buildinr lClsp....ction, Fees Personnel 600 J Po lice-lure ha sing & Contracting II ' OO~ Legal ~Iblication and Adv. 1,000 Indepf>njen~ Auditor 500 ~ 'Ju 0 - 6 Stre,,~ " ~ianal Lighting 9,900 _dl~~ :&;~y Insur',rcp 960 ~ ;/ Equipm.,nt - r.tty Hall Furniture 750 Manaae'(lnnt Conti ngency 102 Municip31 League Blli 1 rl ii1gs-Ci ty Hall Improvf>ments , / 1969 RE:VISED BUDGET REVENUE ClASSIFICATION Cigarette T?v Franchise TClxe" Telephone uccupational Tax Power and Ga~ Franchise Liquor Licen"es (State) License~ Liquor Cigarette Busines~ Building eermits Fines TOTAL TOTAL Deferred ... PERA fJ .- "/ '/ , ~, / ( --~ ~,ooo 9,000 8,500 50 4,900 500 1,500 1,500 $4~, 950 150 \., 625 " 1 ,023 '.., _ r), r:;- - '-J - t (. ./'" +3;Ltk..::. i~; y '7 750 ~ .... - i,) _L J ': 'j -z c; $4~, 950 (1,3 7") .. REVENUE Acct. Code 312 314 ""I 'U2 ~?~ '4(1 DISBURSEMENTS 410 4]) 413 415 4?l 4 -:(1 442 45C 472 " 1< 47" " 7fi 4'/'j 4d3 4CJ4 Leq. K [ROd) Attorney i.c.; ,iller Prosecution ~. ~..x~_)ense Muni r: ip"ll "Ollrt .JudoF', Fpf'. Clerk (1C1' . 7;\, PERA $60 Blue Cros:o) 1, 14( Cit Y Clerk Sellar} (IF; -: ?"Ie f'ERA, BIUF' ''::ross! Record,c. E:l p(.t,i on F-'3; ri -t 1 rrt- (- 1 f'rk } q;-- r Kt, -: - r- ) H. r \. i.i::.:r I<E:'1 1::1 , i:. ;\: '-i\'r;' ;C'N c.i':JC1 . Fr'lnc . '", Telf~ho"p If~, lr,-t ic)n-::l l''''~y POI,.o.'t': ,nd l~ ,-'r-'!l' hL p L i ("' lor IL'" Lir-pr'~ps [ lunr i a ~ rp r "J~ ~~u' in...=> bui 1 rli n\; ! ".~t-mi t ,.. f'inpc .:. (St -1 t f-'- T()'r.......i, !,' .I,()" (f -.OUG p" c:c., , , 4 0 1."-, , i"')("' ] , ~ ;( I , 1 c, " , - 1,.1 0_ -I ~ L $1 . " :>' ~ ( (I 1 , "- t I() 1 , /, \ 1("'(\ ~LJnn("r I, iC1-. 7'X, PERil, Rlu0 "" ,,) ],4 " r l nan,p ':.ity TreH"l~pr 1';1rt-time 10' Pi'lrt-: imp 'X),),<,"p"per t-.2: Clerk' "n", 7';" Il-:RA, Blue r'rossl l,;3 Admini~tr'3t 'P Services Salar-, (LIo,'f"r [' j) (l, 375) Services and S1Jpplies fiOO Buildin<] l'FpeL,tion, Fees Personnel I,or Policp-~uccha3ing & Contractinq 16,000 IRqal i'\Jhl i,.t ir:>n and Adv. ] ,(In(' Tnrlerpwj"rrr ^,Ildit"r "no 5 t rF'p! ~ ': i ,] '13 1 I i Cl ht i ng " , oor, In.~llr:-'tl<'D gh(' r.quirrnf'nt - !_ i toy H~111 turn ru....p 7~ ('I fo'3n-'l(]pnl"'nt '.(>nt i noency 1(\! ~Lunlrir,l TP10UP R1Ii1rliYl(],,- t~. H;11 :rnrr0v~mc>nr' ~L.,(_ ':'( 'T;\j Ik>Tnr"rn-j ... ':-;- ,'(fl., .., I " ~ljl "'0' L/ 1,'1 .- " , , I, <'7l..,; Proposed revision to 1969 budget A.djustment .... ...i.".,.......... '~',..'" , , . Iileome Total Ij,ooo 8,500 Dec. NoV. Oct. _~~lt.Hb I h.OOO 6.000 tf.ooo up 8.500 J 11. Cig tax ;;3 Ii psc Franchise tfilY !p. Oceup Tax i\!J.3/-L Liq. Lie. 8,500 9,000 9.000 up 3,150 4.950 4.900 250 500 1.000 5r)0 500 1 '1. 500 12.650 50 250 1m 250 ~~ up 500 Cil'; Bus Lie ~}v 333 ffitfl) 1.SOO _1,250 up 8.150 Permits 1. <;fiO Itt ~10 500 Fines 12.800 TO~AL 40.4~ --". , 11.141 13 :(j~1 ~; , 16.272 ), :" Expenses C~~ -2<':'-: O-~iS1J 1.500 V =~ Fox SilO Salaries -------- - ~and Leg. v/ 500 Pros. and Exp j ~ 500 -1250 166 .J.l.OO I,fri ~~c 50 50 Nieto ~50 zarlengo 500 JSe8- fi}:J> iii. Malone ~ I ~-iJ 625 o-J,).. ~.)..) 19.i'~i. -f,CiA: "1=-+. riple I ~ ~ Martha' ....... 600 ~./P $ (J>';;lW) l.l40 ~ ~ Ji'I f>-- u.~ ')'1I 0 168 400:!:rol) 16 I ~ ~ .~ ~t~ Of' 166 /' Turner Judge \~Af City Trea.s. / 50 ~14'l-1 P. T. Bookkeeper V;:08 ''If&.' Clerk c;:(~ V' 'JOO'"L(1/lJ 4'-' BId Iilsp fee / .' Ct., ~dd'rlr/ 380 ~/r pl"nner ,./ . 93 D Adm. s;.:;..,., / \'65) 209 208 ~ro .JOOt(DIJ 300 3BO 700 300 380 700 (550) 1.400 Johnson (Deferred) (\..315) (550) 3.304 3,307-~ _._-~--~.--~- /.lIj.... + /I) '2--. . -~~ tf Ifo 0 >, '1 l.j'01) ~ 'f. ~~ J "'e" ~.i :f'. ~ Total less ~~'J 5 i"4t13 II~' ~~ ;\ t...f 13 Records, Elect ~ l..f 7 fe, us. Bonds 333 1:f30 'd Serv, SU1?1J1y / ~oo 4~O pol~ ~<t.v1.o00 IL 0.....f~1' T7 tJ st. Lights 5,500 , ,!!f1 f City Ban 750 :!~8 Off. Equip 600 '!!, ,471-~ Pub. Adv ~ 1,400 1,400 333 '114 ~ zoo 100 600 5,000 5,01)0 G~09 . 2,200 2,200 9,900 750 o , ., Page 14 CITY OF HllEAT RIDGE AIlIWAL BUDGET Capital Facilities Account Nos. 490~498 General Fund Acct. l-lo. Classification 1969 1970 490 493 494 496 497 lf98 Street, New & Rehabilitation Signs and Signal Buildings and Equipment Storm, Sewer, Drainage Lands Building Reserve TOTAL o o 750 o o o 750 $H9j897* III (> I ? t' '7 2f),060 7.1, L c' Cc 20,000 5,000 8,000 o 192,897 lei Lf, (,7<'; '~he County is expected to collect $46,760 in the first half of 1970 in Highway User (gasoline) Taxes based on viheat Ridge streets and vehicle registration and it is assumed this will be expended on \~heat Ridge streets. If the county shares half of its current roads and bridge mill levy with the City and the mill levy is not changed, an added $103,480 for streets and bridges will accrue to Hheat Ridge. Highway expenditures could be: Engineering Division Traffic Division Streets Division Shop Division Street, Ne~'T & Rehab. Sign and Signal Storm Drainage First Half Gasoline !:i County Levy $ 36,700 15,150 ~3;754 3,150 130;897 1'1':>,,, -'9 20,000 u- -',,,, 5;000 46,760 103,480 $414,8~1L(?7 1<;73- funds for \-Jheat ll.idge was: , {- ->' 7 ~ '/ I The pro-rata share of 1969 county road Construction Equipment, Maintenance, Operation Capital Outlay Administration Engineering, Traffic $236,308 46,816 34,532 25,200 Control 60,576 $403,432 Page 3 1969-70 Revenue Commentary Annual Budget General Fund City of Wheat Ridge Account 310. The Highway Users Tax is distributed by the state based upon a formula which takes into account stre~t mileage and the number of registered vehicles. Jefferson County "till receive this money through Fiscal Year 1970 (June 1970) based on p~Qviding the state with county mileage and vehicle registrations in l-1G.y 1969. At that time, Hheat Ridge was unincorporated. Since this mcn8Y will be received based upon \{heat Ridge data a prorata share should be sp~nt on Wheat Ridge streets, but this figure is not included in this budget. Jim Lee, Plans and Research Division, Division of Highways, State Highway Department, says ~fueat Ridge will get the money in Fiscal Year 1971 (July 1970 and after) if data on mileage and vehicle registration is provided. He will compute this mileage for us if we provide him two maps. We will need to ask the county to provide full year 1969 vehicle registration in the city of ~fueat Ridge. If the county lacks personnel to get accurate registration data, the City of Hheat Ridge will need to make the count from public records. Special License Fee data is based on an estimated 18,000 vehicles. 'Not included as income, but projected as expenditure is a possible $103,480, which is the Wheat Ridge portion of the Jefferson County Road and Birdge Fund if county levy remains at 3.83 mills and if the county continues to make half of the money collected in Wheat Ridge available for Wheat Ridge streets and bridges. Account 311. Property tax estimate is based on 5.46 (five and forty six one hundredths mills) on an assessed valuation of $55,'225, 220 and 95% collection. Auto property tax estimate is based on 18,000 vehicles. Account 312. Sales tax revenue is based on the assumption that voters ,"lill pass the sales tax at the November 4 election '"lith collection starting in July 1970. The two cent per pack cigarette tax was passed in 1969. Account 314. The Telephone Occupational Tax was effective August 20, 1969, and a franchise agreement on gas and electric service was near finalization in October. Account 331. Thi' a::count Liquor license col1e~~jc ~, ::..' ~(,::lts 15% si.ty retention of State Account 332. Estimated license income is based on the assumption council will pass required o"::~~::lces prior to start of the calendar year. Account 333. Estimated revenue is based on the assumption council will pass required ordinances prior to start of the calendar year. Page 3a Account 340. Fines are based on the assumption the city will be able to implement its plans for the city law enforcement and a municipal court. Account 347. Normal city experience on interest income is assumed. Account 390. Required legislation prior to January 1970 is assumed. Also assumed is city assumption of recreational responsibilities of Wheat Ridge Youth Council on a cooperative basis. If one mill Recreation Districts are continued for one year, they may budget for this activity. ....-..."'- Page 4 CITY OF WHEAT RIDGE ANNUAL BUDGEr General Fund Legislative and Legal Account No. 410 1969 1970 Acct. No. Classification Budget Budget 410.00 Fees, Elected Officials 410.02 Mayor 0 15,000 410.02 Councilmen 0 15,000 410.10 Official Expense 0 2,000 410.30 City Attorney, Retainer 1 ,500 7,800 410.31 Prosecutor 500 2.400 410.32 Leg. Contingency 0 t.,200 410.50 Fees and Boards 0 700 410.60 Reg. and Elect 1,40'1 18,000 410.90 Other !) 200 TOTAL BUDGET 3;400 65,3()O Program Description: Since the Mayor and Council under the statuatory form of government have elected to handle city management without a city administrator, frequent meetings Ilre expected through 1970. Pay adopted is $25 pe~ meeting for councilmen but with expenditure limited by the budget to $15,000 per ye3r for council ($1,500 per councilman) regardless 0' the number or duration of meetings. Only 27 full time personnel are scheduled to be hired plus contract personnel. A meeting is any full business meeting of Council as called by the Hayor. Page 5 CITY OF ImEAT RIDGE ANNUAL BUDGET General Fund Hunicipal Court Account No. 411 1969 1970 Acct. No. Classification Budget Budget 411.00 Salaries 1,000 4,560 411.10 Personnel Expenses 140 800 411.30 Fee Personnel 500 10,250 411.40 Supplies 0 1,200 411.70 Facility Maintenance 0 50 411.80 Capital Equipment 0 1,300 411.90 Other 0 800 TOTAL BUDGET 1,640 18,960 Program Description 1970 Personnel costs include Judge at $600 fee basis, other fee personnel he requires and a court clerk. The city is adopting the model traffic ordinance and Golden's general offense ordinances and expects to have contract police capability thru 1970. Page 6 CITY OF IVREAT RIDGE ANNUAL BUDGET General Fund City Clerk Account No. 413 1969 1970 Budget Budget 2,650 10,800 186 1,500 0 5,600 0 40 0 750 0 50 2,836 18,740 Acct. No. Classification 413.00 413.10 413 .40 413.70 413.80 413.90 Salaries Personnel Expenses Supplies Facility Maintenance Equipment Other TOTAL BUDGET City Clerk's salary has been set at $500 per month and her deputy at $400 per month. Page 7 CITY OF WIlEAT RIDGE ANNUAL BUDGET General Fund Recreation i\ccount "10. L,l I, .1." Acct. No. Classification 196Q Budget 1971' Budget TOT AL o o o o o o () o l2,OOO 2,000 9,000 14,000 6,00n 4,000 13 .000 60,onO 414.00 414.10 414.20 414.30 414.70 1,14.80 414.90 Salaries Personnel Expenses Supplies Fe. Personnel Facility Maintenance Equipment Other Provides two full-time park personnel at $550 and $450 per roontll plus numerous fee personnel for summer park work and recreation pro,>\ra[;js. Recreation program expenditure is set at $4.775. .\ccount No. 1,1A.90 funds may be used outside the City if a legal means is found. Page 8 CITY OF WHEAT RIDGE ANNUAL BUDGET General Fund Planning Account No. 415 1969 Budget 1970 Budget Acct. No. Classification 415.00 415.10 415.40 415.70 415.80 415.90 TOTAL BUDGET 1,300 100 o o o o 1,400 22,500 2,500 2,800 , 50 1,900 '100 29,850 Salaries Personnel Expenses Supplies Facility Maintenance Equipment Other Planning staff will include a director with salary up to $~,OOO per month, a planner at $700 and a planning technician the last half of the year at $525 per month. Page 9 CITY OF \-ffiEAT RIDGE ANNUAL BUDGET General Fund City Treasurer Account Nos. 420-21-22 1969 1970 Acct. No. Classification Budget Budget City Treasurer 420.00 Salary 150 3,600 420.10 Personnel Expenses 0 500 420.40 Supplies 0 275 420.70 Facility Naintenance 0 50 420.80 Capital Equipment 0 600 420.90 Other 0 30 TOTAL 150 5,055 Finance 421.00 Salary 500 14,592 421.10 Personnel Expenses 0 1,500 421.40 Supplies 0 900 421.70 Facility Maintenance 0 200 421.80 Capital Equipment 0 780 421.90 Other 0 50 TOTAL 500 18,022 Purchasing 422.00 Salary 1,200 2,400 422.10 Personnel Expenses 145 400 lf22.40 Supplies 0 510 422.70 Facility Maintenance 0 50 422.80 Captial Equipment 0 380 422.90 Other 0 50 TOTAL 1,345 3,790 The finance and purchasing functions are under the supervision of the elected city treasurer whose salary is set at $300 per month. He will supervise a combination purchasing-finance officer, a bookkeeper and a finance clerk, the latte" to be hired in July. Salary of the finance officer-purchasing agcnt is set at $750 per month. A part-time bookkeeper will be hired in 1969. CITY OF WHEAT RIDGE ANNUAL BUDGET General Fund Administrative Services Account Nos. 430-431 Page 10 Acct. No. 1969 Budget Classification 430 Administrative Services Salary Personnel Expense Supplies Facility Maintenance Capital Equipment Other o o 600 o o o 600 431 Personnel Salary Personnel Expense Supplies Facility Maintenance Capital Equipment Other o o o o o o o - 1970 Budget 17,895 1,900 500 100 2,000 1,000 23,395 o o 1,200 o 200 o 1,400 Administrative Services Director will perform the publication and administrative services functions in support of the Mayor and staff and the personnel function. Salary includes $1,375 deferred for 1969 services (2~ months at $550). Staff available to the Director, l1ayor, and Council includes a secretary and a clerk-receptionist. CUy OF WjJE:\l' RIDJE \l'I~UAL BUD'':;C r General Fund Public Service Acct. No. Class if ication 440 Public Services Engineering Salaries Personnel Expense Supplies Facilities ~~intcnRnce Equipment Other 441.00 441.10 441.40 441.70 4:.1. Sf {,..41. C}( TOT!\L 442.00 442.01 {~!~2_10 :'42.ll0 442.70 ',42.80 {~!<2. 9n Building Inspection Salaries Fee Fersonnel Personnel Expense Supplies facilities Maintengnce Equipment 11ther 'i (,[,-\L {,43.0(1 443.10 443.40 443.70 41.3.S!) :;',3.90 Tr3ffic Salaries Personnel Expense Supplies FaciliLies ;L~t l~0n.3nce C lpit.al Eqlllpr:leLt.. O.her '() L\L Lt4/t.'10 SLrce... Sa] 1 ~(S rCl'"':oancl Expense Inventories Suppli <,s Facilities n:>.inten,mc<' Capital r;, uipment [('lAL ! '.;.'~ . ! 444 .' ' !t4~ .!.to 444. 70 444.80 Page 11 Accoun~ no . (,'.n_ I ft~" 196q 1 q-;, 0 :'8,'1QO 0 3,00') 0 2,350 0 1,000 0 2,1(10 0 ';0 0 36,700 0 11 ,25<'-: b'lO 2,4r:n " :',580 , n ] ,6 7~ (1 1,35(\ () 1,IV1 C1 1/1-(' 600 21,n2S 0 -: , 2()O 0 1,000 0 1,500 0 :',000 0 ~,3'Jr 0 3n --;:; 15,150 r - ,8'10 1,8(\'1 n ~ ..~ ,O'lr, " " ~ 1):' r, 3, inn 0 2JJ30:~ --r ';s, q~', Page lla 445.00 445.10 445.20 445.40 445.70 445.80 Shop Salaries Personnel Expense Inventories Supplies Facilities Maintenance Capital Equipment TOTAL o o o o o o )" o o 2,000 '150 o 1,000 3,150 The City Engineer will also head the Public Services Department when hired in July. In the interim and on a trial basis all functions may be assigned to the Director of Plans for supervision with possible ultimate adoption of this functional arrangement on a permanent basis. A total of 9 personnel are provided with five to be hired in July. The staff includes the City Engineer, a Jr. Engineer, 2 clerical, one full-time building inspector supported by fee personnel, a traffic technician, a draftsman and two maintenance personnel for street work. Except for street patching, salting, sanding and other routine work, contracting is contemplated for streets. Page 12 CITY OF ';JHEAT RIDGE ANNUAL BUDGET General Fund Police Acct. Nos. 450-52 Acct. No. Classification 1969 Budget 1970 Budqet 451040 45105U 4510 70 451080 451. 90 Police Auxiliary Services Available for County Patrol .supplios Contract Facility haintendncc Capital Equipment Other 1,000 8,906 310 4,000 2,784 17,000 8,000 189,~6 3,000 6,000 1,600 208,206 450 452 Detective Available for County A pending contract with the county provides two patrol cars with five men each in January and February, three March through June, and five July through December in addition to one patrol car 24 hours per day provided from the county general fund. In addition, the county and city will share in the salary of a lieutenant. General Fund Acct. No. 471 472 473 475 476 478 480 481 483 489 Program Description CITY OF HHEAT RIDGE ANNUAL BUDGET Other Administrative Classification City Hall Naintenance Legal Publication and Adv. Independent Audits Street, Signal Lights Insurance & Bonds Equipment Civil Defense Other Management Contingency Contingency Fund Page 13 Account Nos. 470-483 1969 1970 Budget Budget 0 1,500 1,000 6,000 0 3,500 8 , 96 7 36,000 1,160 4,000 750 0 0 200 0 4,000 102 1,000 11,979 56,200 0 30,000 Budget for Street and Signal lights includes up to $6,000 for signal lights and balance for 628 street lights. ~,'." '.... r ,~~ . ,.,r , . , f f \, ~ Page 14 CITY OF WHEAT RIDGE ANNUAL BUDGET General Fund Capital Facilities Account Nos. 490-498 Ac:c:t. No. Cl48s1fication 1969 1970 490 Street, New ~ Rehabilitation 0 $140,679 493 Siaus and Signal 0 21,000 494 Buildings and Equipment 500 20,000 496 Ston, Sewer, Drainage 0 5,000 497 Lands 0 8,000 498 B.llding Reserve 0 0 TOTAL ~ $1'4,679 The County i. expec:ted to c:ollec:t $46,760 in the first half of 1970 in Highway User (g..oline) Taxes based on Wheat Ridge streets and vehicle registration and it is assumed this will be expended on Wheat Ridge streete. If the County shares half of its c:urrent roads and bridge mill levy with the City and the mill levy i. not changed, an added $103,480 for streets and bridges will accrue to Wheat Ridge. Highway expenditures could be: Engiaeerlng Division Traffic Division Street. Divhion Shop Dhhion Street, New & Rehab. Sign and Signal Storm Drainage Firet Half Gasoline \ County Levy $ 36,700 15,150 55,954 3,150 140,679 21,000 5,000 46,760 103.480 $427,873 The pro-rata share of 1969 county road funds for Wheat Ridge was: Construction Equipment, Maintenance, Operation Capltal Outlay AdainhtratioT Engineering, Traffic Control $236,308 46,816 34,532 25,200 60.576 $403,432 AUDITORS' REPORT CITY OF WHEAT RIDGE, COLORADO December 31, 1969 !i;" TABLE OF CONTENTS REPORT LETTER 3 Page AUDITORS' REPORT BALANCE SHEET - GENERAL FUND 4 ANALYSIS OF CHANGES IN FUND BALANCE (DEFICIT) - GENERAL FUND 5 , "" STATEMENT OF REVENUE - ESTIMATED AND ACTUAL - GENERAL FUND 6 STATEMENT OF EXPENDITURES COMPARED WITH AUTHORIZATIONS - GENERAL FUND 7 STATEMENT OF GENERAL FIXED ASSETS 8 STATEMENT OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTIONS AND ACTIVITIES 9 NOTES TO FINANCIAL STATEMENTS 10 SUPPLEMENTAL STATEMENT EXPENDITURES - COMPARED WITH AUTHORIZATIONS - GENERAL FUND - BY FUNCTIONS AND ACTIVITIES 12 - IC:UO LI~,ULN <i I-RE E- T ,\T,EX,\~})EI~ (JLL\~T ~ (;O'IP.\:\,Y CERTIFIFO PUBLIC ACCOUNTAf'JTS DENVER, COLO RAOQ 80203 The Honorable Albert E. Anderson, Mayor Members of the City Council City of Wheat Ridge, Colorado We have examined the balance sheet - general fund and the statement of general fixed assets of the CITY OF WHEAT RIDGE, COLORADO as of December 31, 1969, and the re- lated statements of operations for the period August 20, 1969 through December 31, 1969. Our examination was made in ac- cordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying financial state- ments present fairly the financial position of the general fund and balanced account groups for the City of Wheat Ridge, Colorado at December 31, 1969, and the results of their op- erations for the period then ended, in conformity with gen- erally accepted accounting principles. The supplemental statement, as listed in the attached table of contents, for the period ended December 31, 1969, has been subjected to the tests and other auditing pro- cedures applied in the examination of the financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the basic financial state- ments taken as a whole. As explained in note C, expenditures for general government exceeded amounts appropriated by $6 for the period ended December 31, 1969. This may constitute a violation of provisions of the Colorado Statutes. ?7~~~,~ ~~~j- r 1ft//- Denver, Colorado February 20, 1970 3 ";;;:';<'-' .... City of Wheat Ridge, Colorado General Fund BALANCE SHEET December 31, 1969 ASSETS Cash Prepaid expenses LIABILITIES, RESERVES AND FUND BALANCE (DEFICIT) Liabil i ties Loan payable - First Westland National Bank (note B) Accounts payable Accrued expenses Salaries Payroll taxes Rent $ 2,375 872 400 Total liabilities Reserve for encumbrances Fund balance (deficit) The accompanying notes are an integral part of this statement. 4 ~. ..;::::.;........:. $ 9,731 1,730 $ 11, 461 $ 19,000 2,734 3,647 25,381 (13,920) $ 11.461 City of Wheat Ridge, Colorado General Fund ANALYSIS OF CHANGES IN FUND BALANCE (DEFICIT) Period ended December 31, 1969 Fund balance - August 20, 1969 $ Excess (deficiency) of revenue over expenditures Revenue Expenditures 27,445 41,365 (13,920) Fund balance (deficit) - December 31, 1969 $ (13,920) The accompanying notes are an integral part of this statement. 5 City of Wheat Ridge, Colorado General Fund STATEMENT OF REVENUE - ESTIMATED AND ACTUAL Period ended December 31, 1969 Estimated Actual revenue over revised Actual (under) (note C) revenue estimated Taxes Cigarette $ 9,500 $ 12,476 $ 2,976 Franchise Telephone 9,000 9,000 Licenses State liquor 375 739 364 Cigarette 700 685 (15 ) Contractors 1,500 2,450 950 2,575 3,874 1,299 Permits Building 500 65 (435) Fines Fines 500 671 171 Miscellaneous Zoning 500 590 90 Liquor hearing 600 600 Miscellaneous 175 169 (6) 1,275 1,359 84 TOTAL REVENUE $ 23,350 $ 27,445 $ 4,095 The accompanying notes are an integral part of this statement. 6 - .-;Jtc______ City of Wheat Ridge, Colorado General Fund STATEMENT OF EXPENDITURES COMPARED WITH AUTHORIZATIONS Period ended December 31, 1969 Appropriations Actual revised over (under) (note C) Expenditures appropriations General government Legislative and legal $ 3,160 $ 2,874 $ (286) Municipal court 1,615 2,622 1,007 City clerk 3,436 3,141 (295) Planning 25 1,394 1,369 City treasurer 1,567 1,490 (77) Administrative services 2,000 2,479 479 Other administrative 14,250 11,843 (2,407) Capital outlays 1,200 1,416 216 27,253 27,259 6 Public safety Police 14,000 13,529 (471) Public service 750 577 (173) 14,750 14,106 (644) TOTAL EXPENDI- TURES $ 42,003 $ 41,365 $ (638) The accompanying notes are an integral part of this statement. 7 ~, City of Wheat Ridge, Colorado STATEMENT OF GENERAL FIXED ASSETS December 31, 1969 GENERAL FIXED ASSETS Equipment Police department Ci ty hall Improvements - city hall INVESTMENT IN GENERAL FIXED ASSETS General Fund revenues $ 3,833 686 The accompanying notes are an integral part of this statement. 8 t $ 4,519 1,416 $ 5,935 $ 5,935 City of Wheat Ridge, Colorado STATEMENT OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTIONS AND ACTIVITIES Period ended December 31, 1969 General fixed assets - August 20, 1969 Addi tions General government Ci ty hall Equipment Improvements $ 686 1,416 2,102 Public safety Police department equipment 3,833 Deductions General fixed assets - December 31, 1969 The accompanying notes are an integral part of this statement. 9 L......._ $ 5,935 $ 5,935 I ~ ~ ~ City of Wheat Rid~e, Colorado NOTES TO FINANCIAL STATEMENTS December 31, 1969 NOTE A - INCORPORATION OF CITY On June 20, 1969, The District Court in and for the County of Jefferson, State of Colorado, ordered, adjudged and decreed that the incorporation of the City of Wheat Ridge, Colorado was complete. The election of the first officers of the City took place on August 19, 1969. On their qualifying and enter- ing office on August 20, 1969, the incorporation was final and complete. NOTE B - LOAN PAYABLE - FIRST WESTLAND NATIONAL BANK The City Council authorized the issuance of anticipation war- rants up to $25,000. Rather than issuing anticipation warrants, however, the First Westland National Bank loaned the City $19,000. This loan is noninterest bearing and is payable from the first revenues of the City available for the payment of City debts. NOTE C - APPROPRIATIONS Budgeted amounts included in the accompanying financial state- ments are based on the budget as finally revised by the City Council. Original and revised budgets were adopted during the year as follows: Revenue Expenditures Original budget - September 11, 1969 $ 32,800 $ 32,800 Various revisions 9,550 9,203 Revised $ 42,350 $ 42,003 By resolution in February, 1970, the Council authorized the payment of $1,375 in salaries earned in 1969 to a city em- ployee. This resulted in an overexpenditure of $6 of 1969 general government appropriations. 10 4 ~uprLhMENTAL STATEME~T ifF". ~ 150 150 1,417 1,272 (145) 68 68 1,567 1,490 (77) 2,000 2,079 79 400 400 2,000 2,479 479 City of Wheat Ridge, Colorado General Fund EXPENDITURES - COMPARED WITH AUTHORIZATIONS - BY FUNCTIONS AND ACTIVITIES Period ended December 31, 1969 Appropriations revised (note C) Expendi tures GENERAL GOVERNMENT Legislative and legal City attorney Prosecution Election $ 1,500 410 1,250 3,160 500 1,115 1,615 1,500 1,336 600 3,436 $ 1,500 400 974 2,874 1,500 1,071 51 2,622 1,500 990 531 120 3,141 1,375 19 1,394 Municipal court Judge Clerical salaries Payroll taxes City clerk City clerk - salary Clerical salary Inspector Payroll taxes Planning Salaries Supplies 25 25 City treasurer City treasurer - salary Clerical salaries Payroll taxes Administrative services Supplies Rent Actual over (under) appropriations $ (10) (276) (286) 1,000 (44) 51 1,007 (346) (69) 120 (295) 1,375 (6 ) 1,369 The accompanying notes are an integral part of this statement. 12 PL,. ---=*'--- ---=J City of Wheat Ridge, Colorado General Fund EXPENDITURES - COMPARED WITH AUTHORIZATIONS - BY FUNCTIONS AND ACTIVITIES (CONTINUED) Period ended December 31, 1969 Appropriations revised (note C) Expenditures GENERAL GOVERNMENT (CONTINUED) Other administrative Legal publications and advertising $ 4,000 $ 3,457 Independent audits 250 Insurance and bonds 2,750 1,038 Ci ty hall equipment 1,000 686 Management contingency* Salaries 4,167 Contract la bor 1,180 Tree limb disposal 636 Supplies 229 Payroll taxes 200 6,500 6,412 14,250 11,843 Capital outlays City hall improvements 1,200 1,416 Total general government 27,253 27,259 Actual over (under) appropriations $ ( 543) 250 (1,712) (314) ( 88) (2,407) 216 6 * The management contingency account provided for the collection and disposal of broken tree limbs in the City of Wheat Ridge during October and November, 1969. The accompanying notes are an integral part of this statement. 13 .L ......::ca.~ -,. City of Wheat Ridge, Colorado General Fund EXPENDITURES - COMPARED WITH AUTHORIZATIONS - BY FUNCTIONS AND ACTIVITIES (CONTINUED) Period ended December 31, 1969 Appropriations revised (note C) Expenditures PUBLIC SAFETY Police Contract services Capital equipment Payroll taxes Supplies $ $ 9,007 3,833 432 257 13,529 14,000 Public service Building inspector fees 750 577 Total public safety 14,750 14,106 TOTAL EXPENDI- TURES $ 42,003 $ 41,365 Actual over (under) appropriations $ (471) (173) (644) $ (638) The accompanying notes are an integral part of this statement. 14 -- ,,':II ARTHUR YOUNG ~ COMPANY SECURIT'r LiFE BUILDING OENVE.R COLORADO 80202 October 15, 1979 Ci ty Council The City of Wheat Ridge P.O. Box 638 Wheat Ridge, Colorado 80033 Attention: Mr. James O. Malone, City Treasurer Gentlemen: We are pleased to respond to your request for a proposal to provide accounting and auditing services to the City of Wheat Ridge. We are confident our firm can provide the high quality service you require from your independent certified public accountants. We have prepared our statement of qualifications to be responsive to the selection criteria expressed in your request for proposal. The relevant experience of our firm and the Denver Office personnel we would assign to serve the City of Wheat Ridge are described in this proposal. In it we emphasize a uniquely qualified client service team with a long record of effective S8rvice to our governmental clientele. Our proposal is organized in the following manner: I. Scope and Timing of Services II. Our Qualifications and Resources III. Our Engagement Team IV. Our Approach to the Audit V. Estimated Hours and Fees We are prepared to complete the audit and issue the final reports prior to March 31, 1980. ARTHUR YOUNG 0; COMPANY We are qualified to render outstanding service to the City of Wheat Ridge, and we are prepared to commit whatever resources of our firm may be necessary to serve the City's interests and objectives in the area of our professional competence. In short, we would be proud to serve the City and stand ready to do so without delay. We appreciate your consideration of Arthur Young & Company and welcome this opportunity to present our qualifications. Should yo have any questions concerning our qualifications, please contact Mr. Earl E. Mackey at 2100 Security Life Building, Denver, Colorado 80202, telephone number 534-0621. Mr. Mackey is a general partner in our firm and is authorized to represent Arthur Young & Company in its dealings with the City of Wheat Ridge. Very truly yours, ~hi~ -- ... ... TABLE OF CONTENTS -- -- \ ~ I. SCOPE AND TIMING OF SERVICES Services to be Performed Timing L L L L L L L L L l II. OUR QUALIFICATIONS AND RESOURCES Introducing Arthur Young Arthur Young in Denver Our Clients Our Consulting Experience with Local Government III. OUR ENGAGEMENT TEAM IV. OUR APPROACH TO THE AUDIT V. ESTIMATED HOURS AND FEES I L 1 ~ Page 1 1 2 3 3 4 5 7 11 19 23 I. SCOPE AND TIMING OF SERVICES SERVICES TO BE PERFORMED The auditing and reporting work for the year ended December 31, 1979 to be performed for the City of Wheat Ridge includes the following funds: General Fund Sales Tax Improvement Fund Revenue Sharing Fund Conservation Trust Fund Public Works Escrow Fund Parkland Acquisition Fund Police Pension Fund Other Special Funds Our examination of the financial statements of these funds would be made in accordance with generally accepted auditing standards, and would accordingly include such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. This examination would be designed to enable us to express an opinion as to the fairness of the presentation of the financial statements of the General Fund and various other funds of the City. It appears that existing procedures, policies and controls are adequate enough to permit us to place a reasonable degree of reliance thereon, Should we be appointed as auditors, we would arrange to observe the taking of a physical inventory and to confirm selected accounts receivable as soon as practicable. In addition, we would prepare a Management Letter as we consider the development and issuance of meaningful, comprehensive Management Letter reports an integral part of our basic audit services. We believe that your management and Council should have the benefit of the additional assurance that -1- comes from an independent review of the systems and procedures of the enterprise for which they are responsible, and that your management will benefit from the ideas that emanate from such a review with respect to improving operational efficiency and policies, as well as internal controls and accounting procedures. Typically, our Management Letter suggestions are first discussed with the operating manager directly involved with the problem, and all higher levels of management are fully informed about our recommendations before they are. committed to a formal document. This procedure has three advantages: (1) it provides all members of management with an opportunity to participate in the development of the information and encourages them to think constructively about the issues involved; (2) is assures a full understanding of the facts on our part; and (3) it frequently results in more timely implementation of improvements. In summary, we believe that two key factors distinguish Arthur Young's Management Letters from those of other CPA firms: . Because of our "businessman's approach" to auditing, we develop comments pertaining to the client's continuing success as a fiscally sound enterprise. . Our personnel are experienced in using the Management Letter as part of a continuing dialogue with top management. It is part of our overall commitment to establish an effective communications network between ourselves and all levels of client management. TIMING We are prepared to work within your requested timetable, leading to completion of the audit and issuance of our reports prior to March 31, 1980. -2- II. OUR QUALIFICATIONS AND RESOURCES This statement describes, under the following headings, the resources and capabilities of Arthur Young & Company which, we believe, makes us exceptionally well qualified to serve as the independent auditors for the City of Wheat Ridge. . Introducing Arthur Young -- some facts about our firm. . Arthur Young in Denver -- our people, our practice, our objectives. . Our clients. . Our consulting experience with local governments. INTRODUCING ARTHUR YOUNG Arthur Young & Company is one of the largest professional service firms in the world, with a reputation for high quality professional work and distinguished service to its clients. The following statistics comprise a brief profile of the firm today: . A general partnership with 582 partners in the United States. . Client service offices in 68 cities in the United States. . Outside the United States, offices in 180 cities in 52 countries. . Total U.S. personnel - 6,000. Of these, 4,500 are professional, client-servicing personnel. Outside the U.S., another 8,000 professional personnel. . In terms of professional personnel, our U.S. practice currently divides as follows: 68% auditing and accounting, 19% tax services, 13% management consulting services. -3- Our audit clients include some of the largest and most successful business enterprises in the world. We are equally proud of the many government entities, schools and universities, utility enterprises, social and cultural organizations, professional service firms, and philanthropic organizations that we number among our clients. Some of the governmental clients we serve are listed on the following pages. ARTHUR YOUNG IN DENVER The practice of Arthur Young & Company in Denver dates back to 1955 when we merged in the practice of a prestigious local firm established in 1915. In keeping with the firm's organizational philosophy, the Denver Office has retained a strong local identity, and the composition of our skills and the style of our practice reflect the Denver environment. Today we employ more than 75 professional people. We are committed to the philosophy that our office should develop and maintain, on a permanent, resident basis, all the resources of professional and technical knowledge and experience required to meet the normal needs of clients and prospective clients in our community. This approach, in our experience, benefits our clients in several important ways: . Our resident professionals tend to have a greater interest in, and a much more thorough understanding of, the objectives, operations, people, and special concerns of client organizations than would otherwise be the case. . Through their close communications and frequent contact with client personnel, our resident professionals are able not only to satisfy their clients' audit needs but to provide them with valuable ideas for and assistance in increasing the efficiency of their operations. . Perhaps most important, we believe that the sense of personal responsibility -- and responsiveness -- of local client service personnel is bound to be greater than that of regionally or nationally based specialists whose relationship to any particular client must, of necessity, be of a transient nature. -4- The overall objective of our Denver Office is to provide the finest auditing, tax, and management advisory services obtainable in the area we serve. OUR CLIENTS Arthur Young & Company serves many governmental and related institutions in Denver and nationally. The Denver Office of Arthur Young & Company has served or is serving the following: State, county or local governments Cheyenne Board of Public Utilities City and County of Denver City of Boulder, Colorado Pueblo West Metropolitan District Denver General Hospital Colorado State Hospital - Pueblo Colorado Department of Social Services Colorado Department of Local Affairs Colorado State Highway Department Colorado Division of Rehabilitation Denver District Court City of Arvada Montana State University University of Montana Programs financed by the Federal Government The Housing Authority of the City of Pueblo, Colorado The Housing Authority of the City of Helena, Montana The Housing Authority of the City of Anaconda, Montana HUD 701 Grants to Colorado Planning and Management Regions Park East Comprehensive Community Mental Health Center, Inc. City of Wheat Ridge EDA Grant Funds In addition, we serve various school districts, water districts, state departments, counties, and federal agencies. We have also provided management consulting services in a variety of -5- special projects for numerous governmental agencies, several of which are described later in this section. The following is a representative listing of some of the over 500 commercial clients served by the Denver Office. American Snowblast Corp. American Television and Communications Corporation Asamera Oil Co. Bayly Corp. Bekins Van & Storage Boulder Medical Center Denver Club Denver Union Corp. Denver Wood Products Co. Dixson, Inc. Elder-Quinn & McGill El Pomar Foundation Fulenwider, Inc. Greeley Gas Company Homestead House Kerr Management Corp. Key Savings & Loan Larimer Square, Inc. Mentor Corporation Pepsi-Cola of Denver Phipps Foundation Public Service Co. of Colorado Reserve Oil and Gas Co. Rocky Mountain Natural Gas Rocky Mountain Empire Sports, Inc. Ryall Electric Supply Co. Stanley Aviation Corp. Times-Call Publishing Timpte Industries, Inc. University of Denver Van Schaack & Co. Wyott Corporation Nationally, our clients include some of the largest enterprises in the world. Some are publicly-held corporations, many others are private and public institutions. Where the need arises, we are able to draw on the experiences of other offices to improve our ability to serve our clients in Denver. A representative listing of our municipal clients follows: r Ci ty \ Ci ty \ City \ City City " of Anaheim, California of Buffalo, New York of Dallas, Texas of Fort Worth, Texas of Indianapolis, Indiana (City of Portland, Maine City of San Diego, California City of San Francisco, California City of San Jose, California \ Ci ty of Tampa, Florida The following is a representative listing of some of Arthur Young's commercial clients. We are proud of the growing list of Fortune 500 companies we have been named to serve and the many thousands of other clients with whom we are associated, -6- " . . Amerada Hess American Airlines American Express American Standard AMF Avco Brown & Williamson Tobacco Campbell Taggart Cessna Aircraft Chesebrough-Pond's Chubb Continental Oil Encyclopaedia Britannica Esmark Fedders Financial Federation Fluor Corporation Forbes, Inc. General Cable General Instrument Heublein Imperial Corporation of America INA Indian Head International Minerals & Chemical Kinney National Service Lockheed Aircraft Madison Square Garden Corp. - ... ... .. .. . .. Marathon Manufacturing McCulloch Oil McDonald's McGraw-Hill Mennen Company Mobil Oil Owens-Illinois Paine, Webber, Jackson & Curtis PepsiCo Phillips Petroleum Piper Aircraft Pullman RCA Republic National Bank of Dallas Rockefeller Foundation A.O. Smith Southwestern Bell Sperry Rand Texas Instruments Textron Thiokol Chemical Todd Shipyards United Telecommunications Universal Leaf Tobacco Warner Communications Western Electric Williams Companies Wm. Wrigley, Jr. t OUR CONSULTING EXPERIENCE WITH LOCAL GOVERNMENT Arthur Young & Company, in addition to its auditing and tax practice, is one of the largest management consulting firms in the country. We have over 500 full-time management consultants in our domestic offices, with over 60% dedicated to serving our government clients. We have found that a growing need exists in the local government area for the following types of consulting services: ,- . . Internal systems (accounting systems, accountability control, organization, etc.) that are basically necessary to administer application of Federal funds (and which can support audit by public or private agents). , - . Program control and evaluation systems, such as grants management, program reporting methodologies, and ongoing evaluation, that are peculiar to the specific program (CETA, Highway Safety, Community Development, Criminal Justice, etc.) . \ - -7- III. OUR ENGAGEMENT TEAM We have selected an Arthur Young team from our Denver Office to serve the City of Wheat Ridge which represents an unusually strong combination of the engagement management ability, professional skills, experience in serving other cities and clients in the local government field, and personal qualifications that the Council and management should expect of their independent accountants. The members of our team would bring to this engagement a vigorous, business-minded approach to the City's independent audit as well as constructive and creative advice and assistance in other areas of our competence as requested. Later in this section we present brief resumes of the qualifications and experience of each member of our team. Before these individual resumes, however, we present on the following pages brief descriptions of the role of each member of the Arthur Young engagement management team. These descriptions are followed by an organization chart, which can be folded out for easy reference as you read the role descriptions. Roles of Key Personnel. Coordinating Partner - Earl E. Mackey To assure the very highest level of commitment in the performance of your audit, Earl Mackey will serve as Coordinating Partner. Earl Mackey will be directly responsible for the quality of all services we provide to the City, He will maintain the primary relationship with management and will be concerned with the planning and decisions on all important matters. He will be responsible for coordinating the -11- activities of the audit team assigned. Additionally, he will coordinate the participation of any management consulting services provided to the City. Audit Colleague - Harris Cohn It is our practice to assign a colleague partner on all major audit engagements for quality assurance purposes. As Audit Colleague on this assignment, Harris Cohn will be responsible for reviewing the approach to each major phase of the audit and for providing any additional technical expertise and assistance that may be required by the Coordinating Partner or other Members of our engagement management team. He will keep himself sufficiently familiar with the progress of our audit and with the affairs of the City that he can take the place of the Coordinating Partner at any time that may be necessary. Audit Manager - Kenneth D. Anderson As Audit Manager on this engagement, Ken Anderson will be directly responsible to the coordinating partner for the planning, staffing and reviewing of the examination of the financial statements of the City of Wheat Ridge. He will monitor the conduct of the examination on site, resolve problems by appropriate consultation with City personnel, the coordinating partner, the audit senior and other personnel, and coordinate the work of the audit team. Computer Auditing - Keith J, Miller Senior of computer auditing in our Denver Office, Keith Miller will serve as Computer Audit Specialist on this engagement. He will plan and coordinate all our computer-related auditing activities for the City. He will report to and work closely with Audit Manager, Ken Anderson. -12- Audit Test Specialist - William H. Weiskopf As Audit Test Specialist, Mr. Weiskopf is knowledgeable in all the firm's mathematical testing techniques, particularly statistical sampling. He will function as a consultant in determining the appropriate circumstances where applying these techniques will be advantageous. -13- ARTHUR YOUNG'S TEAM FROM OUR DENVER OFFICE TO SERVE THE CITY OF WHEAT RIDGE COORDINATING PARTNER Earl E, Mackey AUDIT COLLEAGUE Harris Cohn AUDIT TEST SPECIALIST AUDIT MANAGER COMPUTER AUDITING William H, Weiskopf Kenneth D. Anderson Keith J. Miller AUDIT STAFF EARL E. MACKEY COORDINATING PARTNER Mr. Mackey is an audit partner in our Denver Office. He has been in public accounting twenty-eight years. As an audit partner he has had the overall responsibility for auditing, tax and nanagement services for various entities in diversified industries, including governmental and service industries. His experience includes: . Audit supervisor, as coordinating partner, of all of our services to The Housing Authority of the City of Helena, Anaconda and Butte, Montana, The Housing Authority of the City of Pueblo, Colorado, City and County of Denver Employees' Retirement Plan, Pueblo West Metropolitan District, George W. Clayton Trust Commission, Colorado Department of Local Affairs, Park East Comprehensive Community Mental Health Center, Montana State University, University of Montana, as well as numerous other governmental and educational institutions. . Coordinating partner for all services to a number of our major commercial clients. Duties include the overall responsibility for auditing, SEC reporting, tax and management services provided. Mr. Mackey is a graduate of the University of Denver (B.A. 1951). He is member of the Municipal Finance Officers Association, American Institute of Certified Public Accountants and the Colorado Society of Certified Public Accountants and has served as the 1976-77 President of the latter organization. -11- HARRIS COHN COLLEAGUE PARTNER Mr. Cohn is the Denver Office Partner in Charge of Accounting and Auditing. Mr. Cohn also serves as the SEC consultant for the Denver Office, having worked in our Home Office as an SEC and research consultant. He has had twenty-four years experience in public accounting and has overall responsibility for audit, tax and management services to many public and privately held companies in the manufacturing and distribution industries as well as governmental entities. Prior to joining Arthur Young & Company, Mr. Cohn held various financial control and managerial positions in private industry, His public accounting experience includes: . Coordinating partner responsible for audit, tax and management services provided to a number of our major clients, including University of Denver and Regis College. Duties include overall responsibility for auditing, SEC reporting, tax and management services provided. Mr. Cohn is a graduate of the University of Denver and is a member of the American Institute of Certified Public Accountants and the Colorado Society of Certified Public Accountants where he has served on the Board of Directors, Chairman of the Committee on Accounting and Auditing Procedures, and editor of the Accounting and Auditing Developments of the CPA Report. -15- KENNETH D. ANDERSON AUDIT MANAGER Mr. Anderson is a certified public accountant with ten years experience in public accounting. He is a manager in the Denver Office of Arthur Young & Company. He is a member of the American Institute of Certified Public Accountants and the Colorado Society of Certified Public Accountants. He is a graduate of Moorhead State University, Moorhead, Minnesota. Prior to his public accounting career, Mr. Anderson was employed for three years by North Dakota State University as Assistant Financial Aid Officer. His responsibilities in this position included designing and maintaining an accounting system for grant, scholarship, and loan funds and the preparation of all reports for these funds, loan collection for NDSL funds; and special projects for the University accounting office. His public accounting experience has included: . Audit management responsibility for Rocky Mountain Natural Gas, American Snowblast, Western Crude Oil, and Information Handling Services. In this capacity, he is responsible for planning, supervision, and coordination of services provided these clients. . Audit management responsibility for City of Wheat Ridge EDA Grant Funds and City of Aurora Community Block Grant. . Mr. Anderson has also participated in audits of other governmental agencies, contractors, and financial institutions. -16- KEITH J. MILLER COMPUTER AUDIT SPECIALIST Mr. Miller is a certified public accountant with over three years experience in public accounting. He is a member of the American Institute of Certified Public Accountants, the Colorado Society of Certified Public Accountants and the Denver chapters of the EDP Auditor's Association and the Institute of Internal Auditors. He has B.S. and M.B.A. degrees from the University of Colorado. During the past two years, Mr. Miller has devoted a large portion of his time to computer auditing. He has participated in numerous seminars sponsored by Arthur Young and has extensive hands-on experience in the computer audit field. He is presently the Denver Office Coordinator of Computer Auditing. In addition to his audit responsibilities, Mr. Miller has been involved in computer audit services with clients including Montana State University, University of Montana, Public Service Company of Colorado, Western Electric, and Homestead House. His computer audit work has included reviews of EDP systems along with the preparation of compliance tests using various firm- developed and custom application programs. -17- WILLIAM H. WEISKOPF AUDIT TEST SPECIALIST Mr. Weiskopf is an Audit Partner in our Denver Office. He has management responsibility for the audit test specialist activities for the office. He is a certified public accountant with six years of financial accounting and management experience in industry and twelve years of experience in public accounting. His experience relevant to this engagement includes: . Audit principal of services to two of our major publicly held clients. Duties include review' of financial statements and required reports, including those for inclusion in SEC registration statements, and consultation with client personnel and others on accounting and reporting matters. . Serves as the Denver Office audit tests specialist and serves as an instructor for firm seminars on statistical sampling. A graduate of Northwestern University (B.S. and M.B.A.), he is a member of the American Institute of Certified Public Accountants and the Colorado Society of Certified Public Accountants, where is is serving as Chairman of the Federal Government Auditing Committee. -18- IV. OUR APPROACH TO THE AUDIT Our principal objective as the independent auditors of the City of Wheat Ridge will be to express an opinion on the fairness of its financial statements. The auditing procedures followed in examining these financial statements will be selected and applied within the framework of generally accepted auditing standards. The selection of auditing procedures within the framework of these standards is a matter of the auditor's professional judgment, guided by our firm's policies and preferences and our "businessman's approach" to audit problems, and problems within the specialized environment of your industry. Our objectives, also of major importance, include: . To be alert to areas of operations, not necessarily limited to accounting, where suggestions can be made for improving controls and reporting, improving operating efficiency, enhancing revenues, or reducing costs. . To be alert to other matters which should receive your attention and to be sure that they are brought to the attention of appropriate City personnel on a timely basis. Our audit approach will include the following elements: . Concentrated advance planning and review with key financial accounting personnel and operating department heads to assure efficiency and coordination and to reach timely agreement with respect to policy matters and areas of mutual cooperation in performing the audit. . Timely review of interim audit plans and findings with management to assure that our planned activities a~e compatible with their concerns. . Extensive reliance on unique computer-oriented and computer- assisted auditing methods developed by our firm. -19- . The use of analytical techniques such as systems documentation, flowcharting, comparison analyses, and statistical sampling (attribute and dollar-value) in addition to traditional auditing procedures. . Concentration on our "businessman's approach" to auditing so that our Management Letter, a by-product of the audit activities, will stress practical ways to improve operating efficiency and reduce costs as well as improve financial controls and reporting. . The use of a team of professional auditors and specialists qualified in the above-described areas, all of whom are presently committed to this enagement. The points emphasized above are developed in our formal client service planning activity, which is described below. CLIENT SERVICE PLANNING Client service planning is a method of organizing and motivating our client service teams to identify client needs and to coordinate our audit and consulting skills so that they are brought to bear most effectively on those needs. Our approach to service recognizes that clients have differing needs and expectations. We have developed a formal approach to client service planning to assure the delivery of needed professional services in minimum response time. We believe that the benefits of this approach include a more knowledgeable client service team, more responsive service, lower cost, and greater acceptance by the client of the results. TECHNICAL APPROACH The purpose of this subsection is to describe the major work tasks we will perform in conducting an audit of the City's financial statements. This tailored approach will provide a basis for the City to evaluate our firm's ability to competently perform the services required. Our experience in similar situations has shown that the careful examinatio~ of a proposed approach to the work can be of invaluable assistance in determining a potential contractor's understanding of the task to be performed and his ability to efficiently perform the required work. -30- Our overall approach has been divided into basic tasks and subtasks as shown in Exhibit A. The basic tasks are: TASK I - Perform Survey of the City's Operations TASK 2 - Develop Detailed Audit Plan TASK 3 - Develop Audit Testing Plans TASK 4 - Perform Interim Audit Work TASK 5 - Perform Year-end Audit Work TASK 6 - Review Financial Statements There follows a discussion on two important aspects of our audit approach, namely: . Computer auditing . Statistical sampling COMPUTER AUDITING Computer auditing, as practiced by Arthur Young & Company, is not a discipline separate and distinct from auditing itself. Rather, basic EDP and computer auditing concepts and techniques are a requisite part of the auditor's operating knowledge. Thus, our computer audit personnel are auditors first and computer technicians second. Computer auditing is staffed and managed within our audit department. Responsibilities for planning, execution, and review of computer audit activities remain with field and management audit personnel, rather than isolating EDP from the audit team by employing a cadre of nonaudit technicians. STATISTICAL SAMPLING We contemplate extensive use of statistical sampling techniques in our audits. Our statistical sampling methods will enable us to evaluate the internal controls in selected systems and to verify certain account balance within certain confidence limits with a specified degree of precision more economically than the traditional judgmental approach to audit sampling permits, Whenever possible we use both attribute and dollar- value sampling. -21- <<: E-< >-< 0:1 >-< ;r: ?< fiI 5 ~ " < ~ -' ~ ~ ~ o " " ~ o . . " ~~ " ~h 00 h' 'Ii ~ . '_h .. ~; "" :::~e ,.., >..0 . _ 0 '" !<:Ulc>. . ~ .. ,- " Oh 0' :~ ~g ~<< -- .::;: 0_ .. 00 ." . ~. M ~-g .". ~ ". -~ h. O. 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V" - ":v,":,,, - ", - .0 -=--= In addition to developing and applying statistical sampling plans, the responsibilities of the statistical sampling specialist assigned to this engagement will include: . Consulting with other assigned audit staff in situations where statistical theoretical or technical problems arise; . Working closely with the computer audit specialists assigned to the engagement in the development of computerized random sampling techniques; . Keeping up to date with respect to evolving advanced statistical theory and application techniques; and . Communicating such techniques to our management team. -22- V. OUR ESTIMATED HOURS AND FEES Although we believe that our billing rates are comparable to those of other CPA firms, we have found that billing rates alone are not the most significant factor in determining fees. Rather, the costs of professional services are substantially influenced by the firm's philosophy and approach to client service, the careful matching of skills and experience levels for the tasks to be performed, and disciplined planning and control of engagements. In Arthur Young we strive to achieve the lowest possible fees consistent with quality professional services through the following approaches. . Client service planning and communication with the client to assure that our focus is on matters that are significant and relevant to the tasks at hand. . Thorough engagement planning, including work plans with estimated time requirements for each task. . Application of modern techniques employing computers and statistical sampling methods whenever possible and appropriate. . Maximum participation during the audit of City personnel, consistent with our requirement to maintain independence. Based on the billing rates, audit approach, schedules and preliminary procedures, and after taking into consideration a governmental adjustment, our hours, fees and expenses for examining the December 31, 1979 financial statements of the City of Wheat Ridge and its various funds and issuing a management letter are estimated as follows: -23- Total hours 180 Estimated out-of-pocket expenses Estimated fees $ 250 5,400 ~.~' Total estimated costs The above amounts contemplate the full level, quality and scope of services that it is our understanding you desire based on our discussion, and includes the application of audit procedures, evaluation of controls and development of management letters for the City of Wheat Ridge along with our opinion on the fairness of presentation of the City's financial statements. We are prepared to work with the City to assure that the fees for our work are commensurate with the nature and quality of the professional services provided. -21-