Comprehensive Annual Financial Report
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COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 City of Lafayette, Colorado 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 City of Lafayette Statement of Vision Lafayette’s panoramic view of the Rocky Mountains inspires our view into the future. We value our heritage, our unique neighborhoods, a vibrant economy and active life-styles. We envision a future that mixes small town livability with balanced growth and superior technologies. City of Lafayette, Colorado Prepared By: Finance Department 2007 City of Lafayette, Colorado Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2007 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal .......................................................................................................................... i GFOA Certificate of Achievement ................................................................................................... vi Organizational Chart ...................................................................................................................... vii Directory of City Officials ............................................................................................................ viii FINANCIAL SECTION Independent Auditors’ Report ........................................................................................................... 1 Management’s Discussion and Analysis ........................................................................................... 3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets .................................................................................................... 13 Statement of Activities ...................................................................................................... 14 Fund Financial Statements: Balance Sheet – Governmental Funds .............................................................................. 15 Reconciliation of the Governmental Funds Balance Sheet to the Government Wide Statement of Net Assets .................................................................... 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................................... 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................... 19 Statement of Net Assets – Proprietary Funds ................................................................... 20 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds ............................................................................. 22 Statement of Cash Flows – Proprietary Funds .................................................................. 24 Notes to the Financial Statements ............................................................................................ 27 Required Supplementary Information: Schedule of Funding Progress – Volunteer Firefighters’ Pension Plan ................................... 63 Budgetary Comparison Schedule – General Fund ................................................................... 64 Budgetary Comparison Schedule – Lafayette Urban Renewal Authority ................................ 68 Note to Required Supplementary Information ......................................................................... 69 Other Schedules: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds .......................................... 73 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ........................................ 74 Combining Balance Sheet – Nonmajor Special Revenue Funds ...................................... 76 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance – Nonmajor Special Revenue Funds .................................................... 78 Budgetary Comparison Schedule – Lafayette City Center GID ....................................... 80 Budgetary Comparison Schedule – Lafayette Corporate Campus GID ............................ 81 Budgetary Comparison Schedule – Lafayette Tech Center GID ...................................... 82 Budgetary Comparison Schedule – Exempla GID ............................................................ 83 Combining Balance Sheet – Nonmajor Capital Project Funds ......................................... 84 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance – Nonmajor Capital Project Funds ....................................................... 86 Budgetary Comparison Schedule – Service Expansion Fund ........................................... 88 Budgetary Comparison Schedule – Parks & Rec Acquisition & Development Fund ....... 89 Budgetary Comparison Schedule – Conservation Trust Fund .......................................... 90 FINANCIAL SECTION (CONTINUED) Other Schedules (continued): Budgetary Comparison Schedule – Storm Drainage Fund ............................................... 91 Budgetary Comparison Schedule – Legacy Open Space Fund ......................................... 92 Budgetary Comparison Schedule – POST Open Space & Park Development Fund ........ 93 Budgetary Comparison Schedule – Capital Projects Fund ............................................... 94 Budgetary Comparison Schedule – Debt Service Fund .................................................... 95 Combining Statement of Net Assets – Internal Service Funds ......................................... 97 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds .................................................................. 98 Combining Statement of Cash Flows – Internal Service Funds ........................................ 99 Budgetary Comparison Schedule – Employee Benefit Fund .......................................... 100 Budgetary Comparison Schedule – Insurance Fund ....................................................... 101 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Water Utility ......... 102 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Water Reclamation 103 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Golf Course .......... .104 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Storm Water .......... 105 STATISTICAL SECTION Financial Trends: Net Assets, Last Seven Years (Schedule 1) ........................................................................... 108 Changes in Net Assets, Last Seven Years (Schedule 2) ......................................................... 110 Fund Balances, Governmental Funds, Last Seven Years (Schedule 3) .................................. 114 Changes in Fund Balances, Governmental Funds, Last Seven Years (Schedule 4) ............... 115 Revenue Capacity: General Governmental Tax Revenues by Source – All Governmental Fund Types (Schedule 5) ......................................................................................................................... 117 Direct and Overlapping Sales Tax Rates (Schedule 6) .......................................................... 118 Principal Sales and Use Tax Payers (Schedule 7) .................................................................. 119 Debt Capacity: Ratio of Outstanding Debt, by Type, Last Seven Years (Schedule 8) ................................... 120 Ratio of General Bonded Debt Outstanding and Legal Debt Limit (Schedule 9) .................. 122 Direct and Overlapping Governmental Activities Debt (Schedule 10) .................................. 124 Pledged-Revenue Coverage, Last Seven Years (Schedule 11) .............................................. 125 Demographic and Economic Information: Demographic and Economic Statistics and Top Ten Employers for 1998 and 2001, Last Seven Years (Schedule 12) ........................................................................................... 126 Operating Information: Full-time Equivalent City Employees by Function/Program (Schedule 13) .......................... 127 Operating Indicators by Function/Program (Schedule 14) ..................................................... 129 Capital Asset Statistics by Function/Program (Schedule 15) ................................................. 130 COMPLIANCE SECTION Local Highway Finance Report ..................................................................................................... 131 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 INTRODUCTORY SECTION 2007 _____________________________________________________________________ Finance Department August 19, 2008 Honorable Mayor, Members of the City Council, and Citizens of Lafayette, Colorado Ladies and Gentlemen: The comprehensive annual financial report (CAFR) of the City of Lafayette, Colorado for the fiscal year ended December 31, 2007, is hereby submitted. The City is responsible for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed report is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain