COMPREHENSIVE ANNUAL FINANCIAL REPORT Pitkin County
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2016 Pitkin County Colorado COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended December 31, 2016 (THIS PAGE INTENTIONALLY LEFT BLANK) Pitkin County, Colorado Comprehensive Annual Financial Report For the Year Ended December 31, 2016 TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Letter of Transmittal i – v Certificate of Achievement for Excellence in Financial Reporting vi Organizational Chart vii Elected Officials viii FINANCIAL SECTION Independent Auditor’s Report A1 – A3 Management’s Discussion and Analysis B1 – B17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position C1 Statement of Activities C2 – C3 Fund Financial Statements: Balance Sheet – Governmental Funds C4 – C5 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position C6 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds C7 – C8 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities C9 Statement of Net Position – Proprietary Funds C10 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds C11 Statement of Cash Flows – Proprietary Funds C12 – C13 Statement of Fiduciary Net Position C14 Statement of Changes in Fiduciary Net Position C15 Balance Sheet – Discretely Presented Component Unit C16 Statement of Revenues, Expenditures, and Changes in Fund Balance with Reconciliation to the Statement of Net Position – Discretely Presented Component Unit C17 Notes to the Financial Statements D1 – D36 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (GAAP Basis) and Actual – Major Governmental Funds: General Fund E1 Pitkin County, Colorado Comprehensive Annual Financial Report For the Year Ended December 31, 2016 TABLE OF CONTENTS Page(s) FINANCIAL SECTION (continued) Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (GAAP Basis) and Actual – Major Governmental Funds: Transportation Sales and Use Tax Fund E2 Open Space and Trails Fund E3 Employee Housing Impact Fund E4 Supplementary Information: Combining Balance Sheet – Non-major Governmental Funds F1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds F2 Combining Balance Sheet – Non-major Special Revenue Funds F3 – F4 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Special Revenue Funds F5 – F6 Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget (GAAP Basis) and Actual: Road and Bridge Fund F7 Social Services Fund F8 Translator Fund F9 Health Community Fund F10 Conservation Trust Fund F11 Healthy Rivers and Streams Fund F12 Ambulance District F13 Redstone Ranch Acres Improvement District F14 Twining Flats Improvement District F15 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (GAAP Basis) and Actual: Transit Sales Tax Revenue Bonds F16 Schedule of Revenues, Expenses, and Changes in Net Position: Airport Fund F17 Schedule of Revenues and Expenditures – Budget (Non-GAAP Basis) and Actual (GAAP Basis): Airport Fund F18 Pitkin County, Colorado Comprehensive Annual Financial Report For the Year Ended December 31, 2016 TABLE OF CONTENTS Page(s) FINANCIAL SECTION (continued) Schedule of Revenues, Expenses, and Changes in Net Position: Solid Waste Center Fund F19 Schedule of Revenues and Expenditures – Budget (Non-GAAP Basis) and Actual (GAAP Basis): Solid Waste Center Fund F20 Combining Statement of Changes in Assets and Liabilities – Agency Funds F21 Pitkin County Library District Discretely Presented Component Unit – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (GAAP Basis) and Actual F22 Combined Schedule of Cash and Investments F23 – F24 Combined Schedule of Governmental Revenue by Source F25 – F28 Schedule of Passenger Facility Charges Collected and Expended F29 Local Highway Finance Report F30 – F31 STATISTICAL SECTION Description of Statistical Trends G1 Net Position by Component G2 – G3 Changes in Net Position G4 –G5 Fund Balance – Governmental Funds G6 – G7 Changes in Fund Balance – Governmental Funds G8 – G9 Program Revenues by Functions/Program G10 – G11 Tax Revenues by Source G12 Assessed Value and Actual Value of Taxable Property G13 – G14 Direct and Overlapping Property Tax Rates G15 – G16 Principal Property Taxpayers G17 Property Tax Levies and Collections G18 Sales Tax Revenue Bond Coverage G19 Sales Tax Revenue Bonds – Maximum Annual Debt Services Coverage Ratio G19 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita G20 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures G20 Ratio of Outstanding Debt by Type G21 Overlapping and Direct Governmental Activities Debt G22 Legal Debt Margin Information G23 – G24 Demographic and Economic Statistics G25 Principal Employers G26 Sales Tax Collections G27 – G28 Pitkin County, Colorado Comprehensive Annual Financial Report For the Year Ended December 31, 2016 TABLE OF CONTENTS Page(s) STATISTICAL SECTION (continued) Annual Seasonal Skier Days by Area G29 Full-Time Equivalent County Government G30 Operating Indicators by Function/Program G31 Airport Operations and Enplaned Passengers G32 Construction and Property Value G33 Capital Asset Statistics by Function/Program G34 – G39 SINGLE AUDIT SECTION Independent Auditor’s Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards H1 – H2 Independent Auditor’s Report On Compliance For Each Major Federal Program; On Compliance With the Passenger Facility Charge Program; And On Internal Control Over Compliance Required By The Uniform Guidance And The Passenger Facility Charge Audit Guide For Public Agencies H3 – H4 Schedule of Findings and Questioned Costs H5 Summary Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H7 – H8 INTRODUCTORY SECTION vi Pitkin County, Colorado Principal County Officials December 31, 2016 Elected Officials District 1 Patti Clapper District 2 Rachel Richards (Chair) District 3 Michael Owsley District 4 Steve Child District 5 George Newman (Vice Chair) Assessor Tom Isaac Clerk & Recorder Janice Vos Claudill ` Sheriff Joe DiSalvo County Manager Jon Peacock viii (THIS PAGE INTENTIONALLY LEFT BLANK) FINANCIAL SECTION McMahan and Associates, l.l.c. M Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com & Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 A P.O. Box 5850, Avon, CO 81620 E-mail: [email protected] INDEPENDENT AUDITOR'S REPORT To the Board of County Commissioners Pitkin County, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Pitkin County, Colorado (the “County”), as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluation of the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA,