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 an understanding of the City's financial activities have been included.
The CAFR is presented in four sections: introductory, financial, statistical, and compliance. The introductory section includes this transmittal letter, the City’s organizational chart and a list of principal officials. The financial sections includes Management’s Discussion and Analysis (MD&A), the government-wide financial statements (GWFS), and the combining and individual fund financial statements and schedules, as well as the independent auditors’ report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The compliance section includes the State required Local Highway Finance Report.
State statutes and the City Charter require an annual audit by independent certified public accountants. The accounting firm of Swanhorst & Company LLC was selected to perform the audit. Their auditors’ report on the GWFS and combining and individual fund statements and schedules is included in the financial section of this report.
Management of the City is responsible for establishing and maintaining internal controls. Controls should be designed to ensure that the assets of the City are protected from loss, theft or misuse. They should ensure that adequate accounting data is compiled so that the financial statements can be prepared in conformity with generally accepted accounting principles (GAAP).
The internal controls are reviewed as a part of the City’s annual audit. They are designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits
______1290 S. Public Road • Lafayette, Colorado 80026 • (303) 665-5588 Fax (303) 665-2153 likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
Generally accepted accounting principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lafayette MD&A can be found immediately following the report of the independent auditors.
The City provides a full range of services. These services include police and fire protection; ambulance; water and sanitary sewer services; the construction and maintenance of streets and infrastructure; recreational activities and cultural events.
This report includes all funds of the primary government – General Fund, Debt Service Fund, Capital Projects Funds, and proprietary funds. Five Special Revenue Funds are also included in this report as blended component units. These are legally separate organizations for which the City of Lafayette is financially accountable. City Council acts as the governing board for each of the Special Revenue Funds.
Profile of the Government
The City of Lafayette is located on the northern edge of the Denver Metropolitan area, situated in southeastern Boulder County, Colorado. The City enjoys a central location between Boulder, Denver, and Longmont. It has good highway access to the entire region, with Interstate 25 located 6 miles east, the Northwest Parkway located on the City’s Southern edge, and the U S 36 Freeway (Boulder Turnpike) 5 miles south of the City. The four-lane U S Highway 287 and two- lane Colorado State Highway 7 intersect in the City. Lafayette’s location, accessibility, and “small town feel” combine to make the City a desirable location for residential, commercial, and light-industrial development. According to the 2000 U S Census, Lafayette had a population of 23,197 in 2000 (current estimate-26,453) living in its 8.6 square mile area (21st in the state), up from 14,440 people in a 7.1 square mile area in 1990 (also 21st in the state).
Lafayette is a home-rule city, meaning that the organization and operation of our municipal government is conducted according to the Charter of the City of Lafayette. This Charter, adopted by the electorate in 1958, provides for a strong Council/Administrator form of government. It is designed to provide the maximum of teamwork among the members of the Council.
The Council is composed of seven members, who are elected on a non-partisan basis from the city at large. Provision is made for the overlapping of terms with a majority of the Council to be elected every two years. Council selects its own team leader, the Mayor, who presides at public meetings and represents the City in interactions with other governmental entities.
The Council is the policy-determining or overall governing agent of the city, having power to pass ordinances, determine policy and appoint the City Administrator and the Chief of Police. The City Administrator is hired by the Council to implement their policies and directives, and to
ii oversee the daily administration and management of all City departments. The Municipal Judge and City Attorney are appointed by, and report to, City Council.
The organization of the city government was created to assure maximum flexibility in organizational structuring, to allow for adjustment to new demands and changing circumstances as Lafayette grows and prospers.
The Charter includes provisions for proper budgeting, fiscal control, auditing, and economical fiscal procedures.
The annual budget serves as the foundation of the City’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions. Compliance is embodied in the annual appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. The City Council may make additional appropriations or budgetary transfers during the fiscal year for unanticipated revenues received by the City. The City Administrator may re-allocate the budget between departments within the same fund.
Any budget revisions affecting fund totals are adopted in a supplemental appropriation ordinance approved by the Council. The City Council and Department Heads receive reports during the year comparing budgeted amounts to actual expenditures. Capital project budget appropriations lapse upon completion of each project. All other appropriations lapse at year-end. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.
Detailed budget to actual comparisons are provided in this report for the General Fund, Lafayette Urban Renewal Authority, the Capital Projects Fund, nonmajor governmental funds, and proprietary funds.
Factors Affecting Financial Condition
Local Economy
The City is currently experiencing a mixed economic environment. Construction activity trended downward during the latter half of the year resulting in lower building permit revenues. However, sales tax revenues continued to grow. In general, the national economic slow down did not impact the local economy until the end of the year.
In spite of the current economic uncertainty, businesses are attracted by many of the same factors that attract new residents to the City. A strong mix of business types currently drives Lafayette’s economy. The City is home to laser optics, software development, data processing products, specialized wholesale trade, professional services, and retail businesses. Beginning in December 2004, Exempla Hospital and Kaiser Permanente employers opened for business in the health services industry, introducing the City to a new employment base. Other new businesses moving into the Corporate Campus GID area added substantially to the employment base.
iii At the north end of the City, commercial construction activity through mid-year 2007 expanded the City’s retail sales tax base. The largest impact in this area was the opening of the new Super Wal-Mart store of approximately 200,000 square feet. The development is expected to attract other retail businesses.
The City continues its efforts to improve the quality of life within its borders by attracting desirable development. In addition, emphasis has been placed on small business retention and attracting new businesses within the community. Economic development activities promoted by the City are responsible for new business development, as well as business retention. One of the tangible results of this approach is an increase in Sales Tax revenues of 53% over the past five years.
Elements of sound economic expansion such as transportation, recreation facilities, planning considerations, and managed growth policies continue to be key issues. The City is confident that the long-term consequences of efforts in these areas will serve to maintain the City's competitive position and foster economic expansion. Such efforts are consistent with the City's goal of protecting the quality of life and the long-term financial interests of the citizenry.
Long Term Financial Planning
During the budget preparation process, capital needs are projected five years into the future, along with anticipated revenues and related operating expenditures. These projections are updated each year.
Colorado’s water resources continue to be a critical component of the City’s ability to service its population and grow. Over the past few years, the City has been actively engaged in improving its sources and storage of water. Most recently, a major pipeline (75th Street) was constructed to carry clean water from Boulder Creek to the Baseline Reservoir. The City also was admitted to the Northern Colorado Water Conservancy District in order to diversify the portfolio and obtain a major source of water supply from the western slope. In 2006, the City began acquiring land at the Goosehaven water storage facility in order to expand raw water storage capacity.
In April 2003, the City issued Water Revenue Bonds to fund construction of a raw water transmission system, purchase shares in water supply districts, and other water-related projects. In order to pay for the additional debt service and anticipated operating cost increases, water rates were increased 9% in 2003, 2004, 2005, and 2006, but no further increases are anticipated in the near future.
Lafayette continues its efforts to provide quality sanitary sewer services to the citizens. The testing lab was remodeled in 1999 as part of this effort, and additional sludge treatment capacity was brought on line in 1998. Expansion of the water reclamation plant began in 2001 and was completed in 2004 at a cost of approximately $8 million.
As part of the US Highway 287 realignment, the City acquired Public Road in April 1996. Public Road, which was part of the old Highway 287, is the main north-south thoroughfare in the heart of downtown Lafayette. Even after the US 287 realignment, Public Road continues to have
iv vi CITIZENS OF LAFAYETTE
CITY COUNCIL
BOARDS & COMMISSIONS MUNICIPAL JUDGE CITY ADMINISTRATOR CITY ATTORNEY - Traffic Violations - Municipal Prosecution - Planning Commission - General City Administration - Code Violations - Lafayette Cultural Arts Commission - Boards and Commissions - Zoning Board of Adjustment - Human Resources
- Library Board - Open Space Advisory Board - Employee Pension Board - Senior Center Advisory Board - Waste Reduction Advisory Committee CITY CLERK FIRE - Historic Preservation Board - Records Management - Suppression - Telecommunications Advisory Board - Licensing - Inspection - Youth Advisory Committee - Court Administration - Training - EMS - Outdoor Classroom Task Force - Urban Renewal/Architectural Review Committee - Public Art Committee - Latino Advisory Board FINANCE - Accounting COMMUNITY LIFE - Budget - Library - Utility Billing - Senior Services - Risk Management - Cultural Arts - Cash Management - Local History - Information Technologies
PLANNING & BUILDING PARKS, OPEN - Planning Current SPACE & GOLF Long Range - Parks - Building - Cemeteries Code Administration - Open Space Inspection - Golf Course
POLICE - Patrol COMMUNITY - Investigation DEVELOPMENT - Code Enforcement - Economic Development - Emergency Management - Community Communication - School Resource Officers - Urban Renewal - Records & Evidence - Community Housing - Community Affairs Unit Program
RECREATION & PUBLIC WORKS FACILITY - Engineering MANAGEMENT - Equipment Maintenance - Recreation - Storm Drainage Leisure Programs - Streets/Traffic Control Aquatics - Utilities - Recreation Center Water - Building Maintenance Water Reclamation
vii CITY OF LAFAYETTE, COLORADO
CITY COUNCIL
Christine Cameron Mayor
David Strungis, Mayor Pro-Tem Kerry Bensman
Frank Phillips Jay Ruggeri
Carolyn Cutler Alex Schatz
ADMINISTRATION
Gary Klaphake City Administrator
Bonnie Star ...... Community Development Director
Michele Seipp ...... Community Life Director
Robert Wright ...... Finance Director
Doug Short ...... Public Works Director
Gerry Morrell ...... Fire Chief
Paul Schultz ...... Police Chief
Monte Stevenson ...... Parks, Open Space, & Golf Director
Curt Cheesman ...... Recreation and Facilities Management Director
Phillip Patterson ...... Planning and Building Director
Susan Koster ...... City Clerk
Peter Johnson ...... City Engineer
Roger Buchholz ...... Municipal Court Judge
David Williamson ...... City Attorney
viii COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
FINANCIAL SECTION
2007
CC11incd Public Accountants
Honorable Mayor and Members of the City Council City of Lafayette Lafayette, Colorado
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information ofthe City of Lafayette, as of and for the year ended December 31, 2007, which collectively comprise the basic financial statements of the City of Lafayette, as listed in the table of contents. These financial statements are the responsibility of the City of Lafayette's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lafayette, as of December 31, 2007, and the respective changes in financial position and cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 12 to the financial statements, the City of Lafayette added infrastructure assets acquired between January 1, 1980, and January 1, 2001, to the financial statements for the year ended December 31, 2007.
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 ofthe 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 Lafayette's basic financial statements. The combining and individual fund statements and schedules and local highway finance report 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.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
September 12,2008
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2 Management’s Discussion and Analysis
Our discussion and analysis of the City of Lafayette’s financial statements for the year ended December 31, 2007, provides a narrative overview of its financial activities. Please consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements.
Financial Highlights:
• The assets of the City of Lafayette exceeded its liabilities at the close of 2007 by $220 million (net assets). Of this amount, $41 million, or 19%, is unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. • The City entered into three capital lease agreements amounting to a total of $1,243,179 (ambulances and equipment- $202,190, recycle bins-$313,445, aerial ladder fire truck -$727,544). • General sales tax revenue increased by 10% over 2006 as a result of continued local retail strength and the City’s economic development program. Use tax revenues were trending lower, indicating the decline in building activity. • At the close of 2007, the City’s unreserved general fund balance was $6.4 million on a modified accrual basis.
Overview of the Financial Statements:
This discussion and analysis is intended to serve as an introduction to the City of Lafayette’s basic financial statements. The City’s 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 are designed to provide readers with a broad overview of the City of Lafayette finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Lafayette’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 Lafayette is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets changed during the most recent fiscal year. 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 are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Lafayette that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities). The governmental activities of the City of Lafayette include general government, judicial, public safety, public works, and culture and recreation. The business-type activities of the City include the water utility, water reclamation fund, storm water fund, and a golf course operation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Lafayette, like other state
3 and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
Proprietary funds. The City of Lafayette maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Lafayette uses enterprise funds to account for its water utility, water reclamation, storm water, and for its golf course operation.
The second type of proprietary fund includes the Internal Service funds. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City of Lafayette’s various functions. The City uses internal service funds to account for its insurance and employee benefits. Because both of these services predominantly benefit governmental rather than business-type functions, the assets and liabilities of the internal service funds have been included within governmental activities in the government- wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Water Reclamation, and Golf Course funds (all major funds), and the Storm Water fund (nonmajor fund). Conversely, since they are defined as proprietary funds, both internal service funds are combined into a single, aggregated memo presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Lafayette progress in funding its obligation to provide pension benefits to its volunteer firefighters and a budgetary comparison schedule for the General Fund and the Lafayette Urban Renewal Authority.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information.
4 Government-wide Financial Analysis
All of the financial data for 2006 has been restated by including prior year infrastructure and developer dedicated land and rights-of-way, net of applicable depreciation.
Analysis of 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 Lafayette, assets exceeded liabilities by $220 million at the close of 2007, an increase of 8.5% from 2006. The following table reflects amounts in thousands.
Governmental Business-type Activities Activities Total 2007 2006 2007 2006 2007 2006
Current and Other Assets $ 33,371 $ 33,624 $ 33,859 $ 32,051 $ 67,230 $ 65,675 Capital Assets 122,114 115,824 95,023 89,466 217,137 205,290 Total Assets 155,485 149,448 128,882 121,517 284,367 270,965
Long-term Liabilities Outstanding 29,328 30,134 26,874 27,946 56,202 58,080 Other Liabilities 6,468 7,823 1,147 1,921 7,615 9,744 Total Liabilities 35,796 37,957 28,021 29,867 63,817 67,824
Net Assets: Invested in Capital Assets, net of related debt 94,030 89,355 75,357 69,968 169,387 159,323 Restricted 9,669 8,450 - - 9,669 8,450 Unrestricted 15,990 13,686 25,504 21,682 41,494 35,368 Total Net Assets $ 119,689 $ 111,491 $ 100,861 $ 91,650 $ 220,550 $203,141
By far the largest portion of the City’s net assets (70 percent) reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Capital assets in governmental activities increased during 2007 primarily as a result of developer dedicated infrastructure, land, and rights-of-way, which amounted to $3.2 million . Construction of the new police facility was completed in May, 2007 at a total cost of $5.8 million, and Echternacht land was acquired for open space at a cost of just under $1 million. Restricted net assets increased from 2006 primarily as a result of a $1 million payment received from the Northwest Parkway Public Highway Authority to be used for the acquisition of an interest in the Mayhoffer open space previously acquired by Boulder County.
In May, 2003, water revenue bonds in the face amount of $15.6 million were issued. The bonds were issued for the construction of a raw water transmission system, the purchase of real property, and construction of a raw water storage facility, the payment of costs associated with fees for joining and purchasing shares in water supply districts, or the development of a reclaimed water transmission system for irrigation purposes. At December 31, 2007, $6.6 million remained to be spent on these projects. During 2007, the City invested $1.1 million on land at Goosehaven for additional water storage, along with water rights.
5 Other capital assets in business-type activities increased as a result of developer dedications. Water and sewer systems increased $5 million and water rights increased $.7 million.
Other liabilities decreased in governmental activities as a result of completion of the new police facility and the use of development funds held as a deposit for the Lafayette Tech Center GID streets.
Changes in Net Assets
The City’s total revenues, including the special item, of $49.1 million exceeded program expenses of $31.7 million resulting in an increase in net assets of $17.4 million. The key elements of this increase are presented in the following table, reflected in thousands of dollars:
Governmental Business-type Total Activities Activities Government Program revenues: 2007 2006 2007 2006 2007 2006 Charges for services $3,930 $ 3,460 $10,034 $ 9,835 $13,964 $ 13,295 Operating grants 1,210 966 - - 1,210 966 Capital grants & contributions 6,870 3,148 8,065 2,613 14,935 5,761 General revenue: Property taxes 4,522 4,642 - - 4,522 4,642 Sales and use taxes 10,081 9,412 - - 10,081 9,412 Interest 1,300 1,044 2,071 1,418 3,371 2,462 Gain on sale of property 7 48 - - 7 48 Franchise Taxes 868 863 - - 868 863 Other general revenues 30 35 - - 30 35 Total revenues 28,818 23,618 20,170 13,866 48,988 37,484
Program expenses: General government 4,590 4,502 - - 4,590 4,502 Judicial 310 302 - - 310 302 Public safety 6,914 5,986 - - 6,914 5,986 Public works 3,633 2,035 - - 3,633 2,035 Culture and recreation 5,296 4,895 - - 5,296 4,895 Interest on long-term debt 1,492 1,531 - - 1,492 1,531 Water - - 5,139 5,027 5,139 5,027 Water reclamation - - 2,611 2,481 2,611 2,481 Golf course - - 1,795 1,626 1,795 1,626 Storm Water ------Total expenses 22,235 19,251 9,545 9,134 31,780 28,385 Excess before transfers and special items 6,583 4,367 10,625 4,732 17,208 9,099 Special Item: Gain on fire conversion 199 - - - 199 - Transfers 1,415 1,465 (1,415) (1,465) - - Increase in net assets 8,197 $ 5,832 9,210 3,267 17,407 9,099
Governmental activities
Net assets in governmental activities increased by $8.2 million. Charges for services increased as a result of providing an ambulance service for the first time in several years, and adopting a city-wide trash and recycle program. Sales and use tax revenue increased by 8.6% during 2007 reflecting the relative strength of retail outlets in the City offset by a lower amount of use tax corresponding to a lower amount of new construction in 2007. Capital grants increased $3.6 million, consisting of the developer dedicated land and infrastructure ($3.2
6 million) and the Domenico Reimbursement Agreement related to Baseline Road. Expenses increased during the year primarily due to overall personnel, fuel, and utility cost increases.
2007 Expenses and Program Revenues - Governmental Activities
$8,000,000
$7,000,000
$6,000,000
$5,000,000 Expenses $4,000,000 Program Revenues $3,000,000
$2,000,000
$1,000,000
$- General Judicial P ublic Public Culture and Interest Government Saf et y Works Recreation and Fiscal Charges
As defined in the footnotes, program revenues are directly associated with a specific activity. However, program revenues only account for 42% of total revenues related to governmental activities. General revenues, consisting mostly of taxes, are not directly associated with any governmental function, and are not included in the above chart. Total revenues from governmental activities are summarized below.
2007 Revenues by Source - Governmental Activities
Other general revenues 4% Charges for services Interest 14% 4% Op erat ing grant s 4%
Sales and use taxes Capital grants 34% 24%
Property taxes 16%
7 Business-type activities
Net assets in business-type activities increased by $9.2 million during 2007. Charges for services increased as a result of a new Storm Water utility, but were offset substantially by a drop in water usage. Developer dedications accounted for nearly all of the increase in capital grants and contributions in the Water Fund and Water Reclamation Fund as previously mentioned. Expenses increases were in the same areas as with governmental activities – personnel, fuel, and utilities.
The following chart demonstrates the comparison of expenses and program revenues for business-type activities.
2007 Expenses and Program Revenues - Business-type Activities
12,000,000
10,000,000
8,000,000
Expenses 6,000,000 P rogram Revenues
4,000,000
2,000,000
- Water Water Golf Course Storm Water Reclamation
The City’s Funds
Information on the major governmental funds of the City follows the government wide financial statements. These funds are accounted for using the modified accrual basis of accounting. At the end of 2007, the city reported a combined fund balance of $20.2 million, a slight increase from 2006. The Capital Projects Fund fund balance decreased $3.2 million as a result of using the remaining bond proceeds received in 2005 for construction of the new police facility. The General Fund fund balance increased $2.5 million, and open space fund balances increased over $1 million from a contribution from the Northwest Parkway Public Highway Authority to offset the above decrease. $11.6 million was unreserved and remained available for spending at the City’s discretion. The remainder of the fund balance is not available for new spending and is reserved as follows:
Reserved for Inventory, Prepaid Expenses, and Assets Held for Resale $ 2,069,721 Reserved for Administrator Severance Package 546,973 Reserved for GID Expenditures 2,749,378 Reserved for Ace Hardware Lease Guarantee 1,282,500 Reserved for Capital Projects 1,908,134 Reserved for Various Community Projects 107,705
8 General Fund Budgetary Highlights
The General Fund accounts for all of the general services provided by the City of Lafayette. At the end of 2007, the fund balance of the general fund had increased by $2.5 million (28%) to $11.3 million as mentioned above. The unreserved fund balance increased by approximately the same amount. The following chart presents a summary of the major revenue sources of the City’s General Fund.
2007 Budget & Actual Revenue by Source - General Fund
11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 Budget 5,000,000 Actual 4,000,000 3,000,000 2,000,000 1,000,000 -
l s its a es r her ce m ent tu t vi Taxes i nm fe Ser or for gover rest and O ense and Per er and F ges Int nes Inte har Lic i F C
As discussed previously, actual sales tax revenues were higher than in 2006, but the lack of growth in use taxes substantially reduced the end result. The 2007 budget was prepared by projecting sales of new retail outlets that were just starting their operations and anticipating a growth in established ones. However, the substantial decline in building use taxes was not anticipated to the extent that it occurred
General government expenditures include all administrative functions of the City (i.e. council, administrator, clerk, judicial, finance, planning, and municipal facilities), as well as public safety, public works, and culture and recreation. The following chart presents a summary of functional categories for expenditures.
9 2007 Budget & Actual Expenditures by Source - General Fund
7,000,000 6,000,000 5,000,000
4,000,000 Budget 3,000,000 Actual 2,000,000 1,000,000 -
y y al n a ci rks tl ment o u n eatio O Judi ic Safet ecr tal ubl R P api Public W C ral Gover and e ltur Gene u C
Operating expenditures were controlled and under budget in all functions except Public Safety. Higher fuel and utility costs caused significant problems during 2007.
Capital outlays are projected and planned on a quarterly basis. When revenues decreased overall, the last quarter of capital outlays were curtailed, resulting in expenditures under budget in the amount of $.4 million.
Capital Assets and Debt Administration
Capital Assets:
The City of Lafayette’s investment in capital assets for its governmental and business-type activities as of December 31, 2007 amounts to $217 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, water and waste water systems, improvements, machinery and equipment, park facilities, roads, storm drainage, and other infrastructure.
Major capital asset activity during 2007 (with prior year Work-in-Progress (WIP)) include (in thousands):
Acceptance of Infrastructure Constructed by Developers Using Bond Issues $11,256 Developer Dedications- Infrastructure 7,324 Land & Rights-of-Way 1,000 Aerial Ladder Fire Truck 728 Lafayette Tech Center Streets 556 Acquisition of Open Space Land 929 Completion of Police Facility 5,753 Water Rights 855
10
Capital Assets at Year-End (Net of Depreciation, in thousands)
Governmental Business-type Activities Activities Total 2007 2006 2007 2006 2007 2006
Land $ 55,988 $ 54,058 $ 4,999 $ 4,984 $ 60,987 $ 59,042 Water Rights - - 25,407 24,665 25,407 24,665 Buildings and Systems 15,820 10,963 59,240 55,593 75,060 66,556 Improvements other than Buildings 443 443 130 154 573 597 Infrastructure 45,926 32,246 - - 45,926 32,246 Equipment 3,721 2,280 3,458 3,330 7,179 5,610 Construction in Process 216 15,834 1,789 740 2,005 16,574 Total $122,114 $ 115,824 $95,023 $ 89,466 $217,137 $205,290
Additional information on the City’s capital assets can be found in Note 5 to the Financial Statements.
Bonded Debt:
At December 31, 2007, the City had total bonded debt outstanding of $46.4 million. Of this amount, $11.2 million consisted of debt backed by the full faith and credit of the City, and the balance of $35.2 million represents bonds secured solely by specified revenue sources (revenue and demand bonds). Additional information on the City’s debt structure is located in Note 6 to the Financial Statements.
Outstanding Bond Debt at Year-End General Obligation, Revenue and Demand Bonds (in millions)
Governmental Business-type Activities Activities Total 2007 2006 2007 2006 2007 2006
General obligation bonds $ 7.9 $ 8.7 $ 3.3 $ 4.0 $ 11.2 $ 12.7 Revenue bonds 8.2 9.0 16.0 16.0 24.2 25.0 Demand bonds 11.0 11.5 - - 11.0 11.5 Total bonded debt $ 27.1 $ 29.2 $ 19.3 $ 20.0 $ 46.4 $ 49.2
Economic Factors and Next Year’s Budgets and Rates
The City of Lafayette is in a strong financial position. At December 31, 2007, fund balance in the general fund was at $11.3 million. Council’s policy in this area is to maintain the General Fund balance at $4 million to cover budgeted expenditures. This policy is revised annually.
Revenues for 2008 were estimated based on the following assumptions:
• Water usage will be similar to 2007 • Golf Course revenues will increase 3.21%. • No increase in recreation fees to remain competitive with neighboring facilities. • Revenue from sales and use tax returns will increase 3.2%. • 75 residential building permits will be issued.
11 • Property tax collections will approximate 100% of the levy imposed. Debt service mill levies will be adjusted to generate the necessary amounts for principal and interest payments. • Inflation will not exceed 3%. • Interest earnings are calculated at 5% interest.
Based on early 2008 results, General Fund revenues are 18% higher than at the same time in 2007, but sales tax revenues are almost flat which is indicative of the slowing national economy . General Fund expenditures have increased approximately $700,000 over the same period in 2007 as a result of a new trash service that was commenced in October, 2007.
Water Fund metered water sales are similar to 2007 for the same period and, water tap fees to date in 2008 have dropped considerably from 2007. Water Reclamation Fund revenues and Golf Course revenues are approximately the same.
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the city’s accountability for the funds and assets it receives. If you have questions about this report, or need additional financial information, contact the City of Lafayette Finance Department at 1290 South Public Road, Lafayette, CO 80026.
12 BASIC FINANCIAL STATEMENTS
FINANCIAL SECTION
2007
CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS December 31, 2007
Governmental Business-type Activites Activities Total
ASSETS Cash and Investments$ 17,252,918 $ 25,746,715 $ 42,999,633 Accrued Interest Receivable 303,644 310,231 613,875 Accounts Receivable (Net of Allowance for Uncollectibles) 2,256,341 312,619 2,568,960 Property Taxes Receivable 4,229,871 - 4,229,871 Prepaid Expenses 96,319 - 96,319 Inventory 26,035 65,878 91,913 Notes Receivable 2,383,973 - 2,383,973 Restricted Cash and Investments 2,580,931 6,804,067 9,384,998 Special Assessments Receivable 1,761,850 215,601 1,977,451 Assets Held for Resale 2,031,968 - 2,031,968 Capital Assets (Net of Accumulated Depreciation) Land 55,987,972 4,998,833 60,986,805 Water Rights - 25,406,605 25,406,605 Buildings and Systems 15,819,824 59,240,150 75,059,974 Improvements Other than Buildings 443,234 130,527 573,761 Infrastructure 45,925,691 - 45,925,691 Equipment 3,721,441 3,457,509 7,178,950 Construction in Progress 216,438 1,789,065 2,005,503 Bond Issue Costs, Net of Amortization 447,376 403,956 851,332
Total Assets 155,485,826 128,881,756 284,367,582
LIABILITIES Accounts Payable 626,006 222,310 848,316 Accounts Payable from Restricted Assets 115,504 - 115,504 Accrued Liabilities 469,821 484,166 953,987 Deposits Payable 852,184 28,592 880,776 Water and Sewer Tap Fees Received in Advance - 412,070 412,070 Deferred Revenues 4,404,968 - 4,404,968 Noncurrent Liabilities Due Within One Year 2,700,707 1,102,227 3,802,934 Due in More than One Year 26,627,305 25,771,845 52,399,150
Total Liabilities 35,796,495 28,021,210 63,817,705
NET ASSETS Invested in Capital Assets, Net of Related Debt 94,030,382 75,356,639 169,387,021 Restricted for: Capital Projects 5,637,337 - 5,637,337 Ace Hardware Lease Guarantee 1,282,500 - 1,282,500 GID Obligations 2,749,378 - 2,749,378 Unrestricted 15,989,734 25,503,907 41,493,641
Total Net Assets $ 119,689,331 $ 100,860,546 $ 220,549,877
The notes to the financial statements are an integral part of this statement.
13 CITY OF LAFAYETTE, COLORADO STATEMENT OF ACTIVITIES For the fiscal year ended December 31, 2007
Net (Expense) Revenue Program Revenues And Changes in Net Assets Operating Capital Grants Charges for Grants and and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental activities: General Government$ 4,590,325 $ 962,093 $ 53,394 $ 8,906 $ (3,565,932) $ - $ (3,565,932) Judicial 310,187 851,855 - - 541,668 - 541,668 Public Safety 6,913,573 298,106 321,900 - (6,293,567) - (6,293,567) Public Works 3,633,406 180,322 756,317 5,572,723 2,875,956 - 2,875,956 Culture and Recreation 5,295,757 1,637,956 78,380 1,288,201 (2,291,220) - (2,291,220) Interest and Fiscal Charges 1,492,229 - - - (1,492,229) - (1,492,229)
Total Governmental Activities 22,235,477 3,930,332 1,209,991 6,869,830 (10,225,324) - (10,225,324)
Business-type Activities Water 5,138,896 5,485,274 - 5,215,489 - 5,561,867 5,561,867 Water Reclamation 2,611,185 1,553,806 - 2,850,409 - 1,793,030 1,793,030 Golf Course 1,795,403 2,432,189 - - - 636,786 636,786 Storm Water 321 563,292 - - - 562,971 562,971
Total Business-type Activities 9,545,805 10,034,561 - 8,065,898 - 8,554,654 8,554,654
Total All Activities$ 31,781,282 $ 13,964,893 $ 1,209,991 $ 14,935,728 (10,225,324) 8,554,654 (1,670,670)
General Revenues: Property Taxes 4,517,103 - 4,517,103 General Sales & Use Taxes 10,080,824 - 10,080,824 Fire District Tax 5,300 - 5,300 Cigarette Taxes 29,506 - 29,506 Franchise Taxes 868,106 - 868,106 Interest 1,299,871 2,070,994 3,370,865 Gain on Sale of Property 7,180 - 7,180 Transfers 1,415,425 (1,415,425) - Special Item - Gain on Fire Conversion 199,677 - 199,677 Total General Revenues and Transfers 18,422,992 655,569 19,078,561 Change in Net Assets 8,197,668 9,210,223 17,407,891 Net Assets - Beginning January 1 as Restated 111,491,663 91,650,323 203,141,986 Net Assets - Ending December 31$ 119,689,331 $ 100,860,546 $ 220,549,877
The notes to the financial statements are an integral part of this statement.
14 CITY OF LAFAYETTE, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2007
Lafayette Capital Other Urban Renewal Projects Governmental General Authority Fund Funds Total
ASSETS Cash and Investments$ 9,133,777 $ 735,346 $ 160,207 $ 5,967,235 $ 15,996,565 Accrued Interest Receivable 83,431 6,227 5,854 70,028 165,540 Accounts Receivable Net of Allowance for Uncollectables 2,010,057 4,893 291 2,376 2,017,617 Property Taxes Receivable 2,801,127 119,996 - 1,308,748 4,229,871 Prepaid Expenses 11,718 - - - 11,718 Inventory 26,035 - - - 26,035 Notes Receivable 5,697 2,378,276 - - 2,383,973 Restricted Cash and Investments 444,431 - 46,000 2,090,500 2,580,931 Special Assessments Receivable 742,089 - - 1,019,761 1,761,850 Assets Held for Resale 2,031,968 - - - 2,031,968
Total Assets $ 17,290,330 $ 3,244,738 $ 212,352 $ 10,458,648 $ 31,206,068
LIABILITIES Accounts Payable$ 574,026 $ 5,587 $ - $ 8,583 $ 588,196 Accounts Payable from Restricted Assets 69,504 - 46,000 - 115,504 Accrued Liabilities 359,941 - - - 359,941 Deposits Payable 693,454 - 59,054 75,000 827,508 Deferred Revenues 4,271,100 2,469,996 - 2,328,509 9,069,605
Total Liabilities 5,968,025 2,475,583 105,054 2,412,092 10,960,754
FUND BALANCE Reserved for Inventory, Prepaid Expenses, and Assets Held for Resale 2,069,721 - - - 2,069,721 Reserved for Administrator Severance Package 546,973 - - - 546,973 Reserved for GID Expenditures - - - 2,749,378 2,749,378 Reserved for Ace Hardware Lease Guarantee 1,282,500 - - - 1,282,500 Reserved for Capital Projects 908,134 - - 1,000,000 1,908,134 Reserved for Various Community Projects 107,705 - - - 107,705 Unreserved reported in: General Fund 6,407,272 - - - 6,407,272 Special Revenue Funds - 769,155 - 212,901 982,056 Capital Projects Funds - - 107,298 3,729,243 3,836,541 Debt Service Fund - - - 355,034 355,034 Total Fund Balance 11,322,305 769,155 107,298 8,046,556 20,245,314
Total Liabilities and Fund Balance $ 17,290,330 $ 3,244,738 $ 212,352 $ 10,458,648 $ 31,206,068
The notes to the financial statements are an integral part of this statement.
15 CITY OF LAFAYETTE, COLORADO RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT WIDE STATEMENT OF NET ASSETS December 31, 2007
Total Governmental Fund Balances $ 20,245,314
Amounts reported for governmental activities in the Statement of Net Assets are different because:
Some receivables recorded on the Statement of Net Assets include deferred building permit fees and interest accrued on special assessments. These items are not available, and are not recognized in governmental funds. 365,368
Notes Receivable includes a note for reimbursement from a redeveloper reported as deferred revenue in the funds. This transaction is not recognized as deferred revenue in the government-wide Statement of Net Assets. 2,350,000
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. This amount is net of accumulated depreciation of $35,806,537. 122,114,600
Other long-term assets (bond issue costs) are reported as current period expenditures during the period incurred in the funds. The costs are deferred, net of amortization, in the government-wide Statement of Net Assets. 447,376
Internal service funds are used by management to charge the costs of insurance and compensated absences to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. 886,739
Some receivables are recorded as deferred revenue in governmental funds since they are not available for current period expenses. 2,289,961
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (29,010,027)
Net Assets of the Governmental Activities $ 119,689,331
The notes to the financial statements are an integral part of this statement.
16 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the fiscal year ended December 31, 2007
Lafayette Capital Other Urban Renewal Projects Governmental General Authority Fund Funds Total Revenues Taxes$ 10,483,270 $ 144,364 $ 245,281 $ 3,730,312 $ 14,603,227 Licenses and Permits 309,359 - - 112,371 421,730 Intergovernmental 1,303,729 - - 243,411 1,547,140 Fines and Forfeitures 851,855 - - - 851,855 Franchise Taxes 868,106 - - - 868,106 Special Assessments Principal 18,670 - 198,313 520,000 736,983 Special Assessments Interest 1,156 - 5,924 541,242 548,322 Interest 515,946 42,501 62,297 522,342 1,143,086 Sidewalk Maintenance/Repair - - 58,681 - 58,681 Contributions and Misc Grants 316,515 - 556,308 1,011,655 1,884,478 Charges for Services 2,255,825 - - - 2,255,825 Administrative Fees 47,683 - - 15,000 62,683 Miscellaneous (1,820) 74,969 3,860 5,025 82,034 Total Revenues 16,970,294 261,834 1,130,664 6,701,358 25,064,150
Expenditures Current General Government 4,065,842 252,992 - 96,529 4,415,363 Judicial 310,518 - - - 310,518 Public Safety 6,331,694 - 1,250 - 6,332,944 Public Works 1,724,150 - 3,442 27,892 1,755,484 Culture and Recreation 4,349,667 - - 17,418 4,367,085 Capital Outlay 1,681,179 - 2,904,067 1,957,410 6,542,656 Debt Service Capital Lease and Loan Payments - - - 172,735 172,735 Principal - - - 2,025,000 2,025,000 Interest and Fiscal Charges - - - 1,390,828 1,390,828 Total Expenditures 18,463,050 252,992 2,908,759 5,687,812 27,312,613
Excess (Deficiency) of Revenues Over Expenditures (1,492,756) 8,842 (1,778,095) 1,013,546 (2,248,463)
Other Financing Sources (Uses) Issuance of Debt 1,243,179 - - - 1,243,179 Transfers In 3,347,257 - 500,000 590,628 4,437,885 Transfers (Out) (592,846) - (1,893,156) (536,458) (3,022,460)
Total Other Financing Sources (Uses) 3,997,590 - (1,393,156) 54,170 2,658,604
17 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the fiscal year ended December 31, 2007
Lafayette Capital Other Urban Renewal Projects Governmental General Authority Fund Funds Total
Net Change in Fund Balance 2,504,834 8,842 (3,171,251) 1,067,716 410,141
Fund Balance, January 1 8,817,471 760,313 3,278,549 6,978,840 19,835,173
Fund Balance, December 31 $ 11,322,305 $ 769,155 $ 107,298 $ 8,046,556 $ 20,245,314
The notes to the financial statements are an integral part of this statement.
18 CITY OF LAFAYETTE, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the fiscal year ended December 31, 2007
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total government funds $ 410,141
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays of $6,542,656, equipment acquired and lost in the fire $9,000, and developer dedications of $3,245,497, exceeded depreciation ($3,440,000) in the current period. 6,357,153
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Assets. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. 901,808
Governmental Funds report deferred revenues as income when received. However, in the Statement of Activities, the income was reported when earned. (222,081)
Some income reported in the Statement of Activities, although measurable, is not available, and is not reported as revenue in governmental funds. 848,454
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (142,742)
Internal service funds are used by management to charge the costs of insurance and employee benefits to individual funds. The net revenue (expenditures) of the internal service funds is reported with governmental activities. 44,935
Change in net assets of governmental activities $ 8,197,668
The notes to the financial statements are an integral part of this statement.
19 CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2007
Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Assets Current Assets Cash and Investments$ 18,861,307 $ 6,046,497 $ 327,430 $ 511,481 $ 25,746,715 $ 1,256,353 Accrued Interest Receivable 240,049 58,444 7,519 4,219 310,231 11,131 Accounts Receivable 183,104 102,044 - 27,471 312,619 329 Prepaid Expenses - - - - - 84,601 Inventory - - 65,878 - 65,878 - Restricted Cash and Investments 6,610,986 193,081 - - 6,804,067 -
Total Current Assets 25,895,446 6,400,066 400,827 543,171 33,239,510 1,352,414
Noncurrent Assets Assessments Receivable - 215,601 - - 215,601 - Bond Issue Costs, Net of Amortization 358,389 45,567 - - 403,956 - Capital Assets Water and Sewer system 48,958,735 29,266,887 - - 78,225,622 - Buildings and Improvements 102,010 200,255 1,321,741 - 1,624,006 - Improvements Other than Buildings - - 423,209 - 423,209 - Equipment 5,191,488 2,315,928 1,212,954 - 8,720,370 - Accumulated Depreciation (15,727,352) (8,813,430) (1,624,239) - (26,165,021) - Total Plant and Equipment, Net of Accumulated Depreciation 38,524,881 22,969,640 1,333,665 - 62,828,186 - Land 4,282,277 716,556 - - 4,998,833 - Water Rights 25,406,605 - - - 25,406,605 - Construction in Progress 1,713,915 75,150 - - 1,789,065 -
Total Capital Assets, Net of Accumulated Depreciation 69,927,678 23,761,346 1,333,665 - 95,022,689 -
Total Noncurrent Assets 70,286,067 24,022,514 1,333,665 - 95,642,246 -
Total Assets $ 96,181,513 $ 30,422,580 $ 1,734,492 $ 543,171 $ 128,881,756 $ 1,352,414
The notes to the financial statements are an integral part of this statement.
20 CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2007
Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds
Current Liabilities Accounts Payable$ 93,924 $ 109,259 $ 19,121 $ 6 $ 222,310 $ 33,825 Accounts Payable From Restricted Assets ------Deposits Payable - - 28,592 - 28,592 - Claims Payable - - - - - 3,985 Accrued Liabilities Accrued Leave Payable 98,856 64,186 53,735 - 216,777 - Accrued Interest Payable 75,021 108,487 - - 183,508 - Accrued Payroll 41,446 25,045 17,390 - 83,881 - Water and Sewer Tap Fees Received in Advance 263,637 148,433 - - 412,070 - Current Portion of Long-Term Debt 624,365 385,689 92,173 - 1,102,227 427,865
Total Current Liabilities 1,197,249 841,099 211,011 6 2,249,365 465,675 Noncurrent Liabilities Long-Term Obligations 18,679,627 6,686,782 405,436 - 25,771,845 -
Total Noncurrent Liabilities 18,679,627 6,686,782 405,436 - 25,771,845 -
Total Liabilities $ 19,876,876 $ 7,527,881 $ 616,447 $ 6 $ 28,021,210 $ 465,675
Net Assets Invested in Capital Assets, Net of Related Debt 57,593,060 16,927,523 836,056 - 75,356,639 - Unrestricted 18,711,577 5,967,176 281,989 543,165 25,503,907 886,739
Total Net Assets $ 76,304,637 $ 22,894,699 $ 1,118,045 $ 543,165 $ 100,860,546 $ 886,739
The notes to the financial statements are an integral part of this statement.
21 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2007
Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Operating Revenues Charges for Services Metered Water Sales$ 5,334,662 $ - $ - $ - $ 5,334,662 $ - Waste Water Collection Fees - 1,553,806 - - 1,553,806 - Storm Water Collection Fees - - - 563,292 563,292 - Golf Sales and Services - - 2,415,423 - 2,415,423 - Miscellaneous Services - - - - - 2,163,062 Other 150,612 - 16,766 - 167,378 - Total Operating Revenues 5,485,274 1,553,806 2,432,189 563,292 10,034,561 2,163,062
Operating Expenses Administration 334,416 218,402 170,250 321 723,389 - Source of Water Supply 259,475 - - - 259,475 - Water Treatment 1,447,354 - - - 1,447,354 - Water Transmission and Distribution 565,665 - - - 565,665 - Waste Water Treatment - 834,850 - - 834,850 - Waste Water Collection - 427,484 - - 427,484 - Storm Water Collection ------Golf Maintenance Operations - - 670,342 - 670,342 - Golf Club House Operations - - 543,655 - 543,655 - Golf Food Service Operations - - 239,211 - 239,211 - Premiums Paid - - - - - 2,137,308 Miscellaneous - - - - - 60,111 Depreciation 1,567,338 868,357 140,608 - 2,576,303 - Amortization 44,204 3,255 - - 47,459 - Total Operating Expenses 4,218,452 2,352,348 1,764,066 321 8,335,187 2,197,419
Operating Income (Loss) 1,266,822 (798,542) 668,123 562,971 1,699,374 (34,357)
Non-operating Revenues (Expenses) Interest Revenue 1,627,896 385,561 38,664 18,873 2,070,994 79,292 Interest Expense (919,694) (258,837) (30,337) - (1,208,868) - Bond Fees (750) - (1,000) - (1,750) - Assessment - Principal ------Net gain(loss) on disposal of capital assets ------Total Non-operating Revenues (Expenses) 707,452 126,724 7,327 18,873 860,376 79,292 Net Income (Loss) Before Contributions and Transfers 1,974,274 (671,818) 675,450 581,844 2,559,750 44,935
22 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2007
Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds
Capital Contributions Tap Fees$ 1,189,964 $ 688,404 $ - $ - $ 1,878,368 $ - Payments in Lieu of Water 440,698 - - - 440,698 - Developer Dedications 3,584,827 2,162,005 - - 5,746,832 - Transfers Transfers Out (611,094) (177,662) (587,990) (38,679) (1,415,425) -
Changes in Net Assets 6,578,669 2,000,929 87,460 543,165 9,210,223 44,935
Total Net Assets, January 1, As Restated 69,725,967 20,893,770 1,030,586 - 91,650,323 841,804
Total Net Assets, December 31 $ 76,304,636 $ 22,894,699 $ 1,118,046 $ 543,165 $ 100,860,546 $ 886,739
The notes to the financial statements are an integral part of this statement.
23 CITY OF LAFAYETTE, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the fiscal year Ended December 31, 2007
Non-Major Governmental Water Proprietary Activities - Reclamation Golf Storm Internal Water Utility Course Water Total Service Funds Cash Flows From Operating Activities Receipts From Customers and Users$ 5,552,946 $ 1,566,200 $ 2,433,980 $ 535,821 $ 10,088,947 $ 110,473 Receipts from Interfund Services Provided - - - - - 2,052,589 Payments to Suppliers (1,213,737) (492,648) (753,044) (315) (2,459,744) (2,152,264) Payments to Employees (1,147,669) (699,759) (765,388) - (2,612,816) (56,869) Payment for Interfund Services Used (318,066) (221,016) (94,832) - (633,914) -
Net Cash Provided by Operating Activities 2,873,474 152,777 820,716 535,506 4,382,473 (46,071)
Cash Flows from Noncapital Financing Activities Transfers to Other Funds (611,094) (177,662) (587,990) (38,679) (1,415,425) -
Net Cash Used by Noncapital Transfers (611,094) (177,662) (587,990) (38,679) (1,415,425) -
Cash Flows from Capital and Related Financing Activities Payment in Lieu of Water 440,698 - - - 440,698 - Tap Fees 737,376 436,112 - - 1,173,488 - Collections of Special Assessments - 5,410 - - 5,410 - Proceeds on lease/purchase financing ------Acquisition and Construction of Capital Assets (1,833,265) (474,438) (147,630) - (2,455,333) - Proceeds from sale of capital assets ------Bond Fees (750) - (1,000) - (1,750) - Principal Paid on Capital Debt (615,604) (374,109) (87,664) - (1,077,377) - Interest Paid on Capital Debt (921,327) (279,412) (30,337) - (1,231,076) -
Net Cash (Used) by Capital and Related Financing Activities (2,192,872) (686,437) (266,631) - (3,145,940) -
Cash Flows from Investing Activities Interest Received 1,601,898 384,192 34,653 14,654 2,035,397 75,041
Net Cash Provided by Investing Activities 1,601,898 384,192 34,653 14,654 2,035,397 75,041
Net Increase (Decrease) in Cash and Investments 1,671,406 (327,130) 748 511,481 1,856,505 28,970
Cash and Investments, January 1 23,800,887 6,566,708 326,682 - 30,694,277 1,227,383
Cash and Investments, December 31, Including $6,610,986 and $193,081 Reported in Restricted Accounts for the Water and Water Reclamation Funds, Respectively $ 25,472,293 $ 6,239,578 $ 327,430 $ 511,481 $ 32,550,782 $ 1,256,353
24 CITY OF LAFAYETTE, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the fiscal year Ended December 31, 2007
Non-Major Governmental Water Proprietary Activities - Reclamation Golf Storm Internal Water Utility Course Water Total Service Funds
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss)$ 1,266,822 $ (798,542) $ 668,123 $ 562,971 $ 1,699,374 $ (34,357) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation Expense 1,567,338 868,357 140,608 - 2,576,303 - Amortization Expense 44,204 3,255 - - 47,459 - (Increase) Decrease in Accounts Receivable 67,672 12,394 1,791 (27,471) 54,386 (329) (Increase) Decrease in Prepaid Expense - - - - - (11,762) (Increase) in Inventories - - (8,053) - (8,053) - Increase (Decrease) in Accounts Payable (84,074) 44,864 12,523 6 (26,681) (5,835) Increase (Decrease) in Accrued Payroll (6,126) (1,871) 374 - (7,623) - Increase in Compensated Absences 17,638 24,320 5,350 - 47,308 6,212 Total Adjustments 1,606,652 951,319 152,593 (27,465) 2,683,099 (11,714)
Net Cash Provided by Operating Activities $ 2,873,474 $ 152,777 $ 820,716 $ 535,506 $ 4,382,473 $ (46,071)
Non-Cash Capital Financing Activities: Capital Assets Acquired Through - Developer Dedications $3,584,827 2,162,005 - - $5,746,832 -
$ 3,584,827 $ 2,162,005 $ - $ - $ 5,746,832 $ -
The notes to the financial statements are an integral part of this statement.
25 THIS PAGE INTENTIONALLY LEFT BLANK
26 NOTES TO FINANCIAL STATEMENTS
FINANCIAL SECTION
2007
City of Lafayette, Colorado Comprehensive Annual Financial Report Index for Notes to Financial Statements For the Fiscal Year Ended December 31, 2007
NOTE 1: Summary of significant accounting policies A. Reporting entity ...... 29 B. Government-wide and fund financial statements ...... 30 C. Measurement focus, basis of accounting, and financial statement presentation ...... 30 D. Cash equivalents ...... 33 E. Investments ...... 33 F. Interfund receivables/payables ...... 33 G. Property taxes receivable ...... 33 H. Inventories...... 34 I. Long-term obligations ...... 34 J. Capital assets ...... 35 K. Accrual for compensated absences ...... 35 L. Fund balance/Net assets ...... 36 M. Special assessments...... 36
NOTE 2: Reconciliation of government-wide and fund financial statements A. Explanation of certain differences between the government fund balance sheet and the government-wide statement of net assets ...... 37 B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities ...... 38
NOTE 3: Cash deposits and investments ...... 39
NOTE 4: Restricted cash and investments ...... 42
NOTE 5: Capital assets ...... 44
NOTE 6: Long-term debt A. Bonded Debt ...... 45 B. Notes Payable ...... 49 C. Pledged Revenues ...... 50 D. Capital Leases ...... 51 E. Changes in Long-term Liabilities ...... 53
NOTE 7: Amendment one ...... 53
NOTE 8: Interfund Transfers ...... 54
27 NOTE 9: Employee retirement plans ...... 54
NOTE 10: Risk management ...... 58
NOTE 11: Assets Held For Resale ...... 59
NOTE 12: Prior Infrastructure ...... 59
NOTE 13: Conduit Debt ...... 60
NOTE 14: Commitments and Contingencies ...... 60
NOTE 15: Pending Litigation ...... 61
28 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City was founded in 1888 and incorporated in 1889. On April 1, 1958 citizens voted to become a Home Rule City, as authorized by Article 20 of the Colorado State Constitution. The City operates under a Strong Council /Administrator form of government and provides the following services as authorized by its charter: administration, finance, planning, library, building maintenance, municipal court, city attorney, police, career and volunteer fire, highway and street maintenance, parks and recreation, debt service, water, sanitary sewer, storm water and golf course services.
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles applicable to governments. A summary of the City’s significant accounting policies applied in the preparation of these financial statements follows: A. Reporting Entity
The City applies the criteria set forth in GASB Statement No. 14, The Financial Reporting Entity, to determine which governmental organizations should be included in the reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.
The City is financially accountable for legally separate organizations if City officials appoint a voting majority of the organization’s governing board and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on the City. The City may also be financially accountable for organizations that are fiscally dependent on it. Based upon the application of these criteria, the City has identified six blended component units presented as special revenue funds. They are the Lafayette City Center GID, Exempla GID, Lafayette Corporate Campus GID, Lafayette Tech Center GID, St. James GID (inactive), and Lafayette Urban Renewal Authority. The Lafayette City Council acts as the governing board for each of the component units.
Separate financial statements are not issued for these component units.
29 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. 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 primary government and its component units.
For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a 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 or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. 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, as are the proprietary funds. Revenues are recorded when earned and expenses are recorded when a 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 collectible 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. 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 and claims and judgments, are recorded only when payment is due.
30 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The Lafayette Urban Renewal Authority accounts for sales and property tax revenues and related expenses specifically identified for urban renewal.
The Capital Projects Fund accounted for taxes collected through the building permit process and other revenues for construction or improvement of the City’s streets and facilities through August 31, 2007. Subsequently, such activities have been accounted for in the General Fund, except for construction of the police building and the Lafayette Tech Center street improvements.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Fund, Water Reclamation Fund, Storm Water Fund, and Golf Course Fund are charges to customers for sales and services. The water fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
The City reports the following major proprietary funds:
The Water Fund accounts for the treatment and distribution of the City’s water supply. The Water Reclamation Fund accounts for the operation of the City’s sewer system. The Golf Course Fund accounts for the operations of the municipal golf course.
31 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Additionally, the City reports the following fund types:
Other special revenue funds used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. This category includes Lafayette City Center GID, Exempla GID, Lafayette Corporate Campus GID, Lafayette Tech Center GID, and St. James GID.
Capital project funds used for specific acquisition or construction activities such as: Service Expansion Fund, Parks and Recreation Acquisition and Development Fund, Storm Drainage Fund, Legacy Open Space Fund, POST Open Space and Park Development Fund, and the Conservation Trust Fund. The Service Expansion Fund and Parks and Recreation Acquisition and Development Fund were consolidated with the General Fund on August 31, 2007.
The Debt Service Fund is used to account for the accumulation of resources for and the payment of long-term obligation principal, interest and related costs (other than proprietary fund debt).
Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. These funds are used to account for the operations of the Employee Benefit Fund and the Insurance Fund, which are administered by the City.
Storm Water Enterprise Fund imposes fees on improved properties and developments to fund storm water quality issues and improvements; and the operation, maintenance, construction, improvement and replacement of storm water utility facilities.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund 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 and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance.
As a general rule, the effect of inter-fund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are charges between the City’s water, sewer, storm water, and golf course functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
32 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Cash Equivalents
The City considers cash deposits and highly liquid investments (including restricted assets) with a maturity of three months or less when purchased, to be cash equivalents. All of the City’s proprietary fund investments are considered cash equivalents for purposes of the statement of cash flows.
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.
E. Investments
Cash and investments, except for proceeds of bond issues accounted for in the appropriate funds, are pooled throughout the year into an Agency Fund (central cash) for cash management purposes. Investment income is allocated to the individual funds monthly, based on the average balance for the month. Should any of these funds have an average deficit in the pool, they are charged interest accordingly. All investments are stated at fair value. For financial statement purposes, the cash and investment amounts are recorded as “cash and investments” of the respective individual funds at year-end.
F. Inter-fund Receivables/Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “inter-fund receivables/payables” (i.e. the current portion of inter-fund loans) or “advances to/from other funds (i.e. the non-current portion of inter-fund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
G. Property Tax Receivable
Property taxes are not due and payable until after the assessment year has ended. Property taxes are initially recorded as deferred revenue in the year they are levied and measurable. The deferred property tax is recorded as revenue in the year it is available or collected.
Property taxes are collected and remitted monthly to the City by Boulder County, Colorado. The property tax calendar is detailed below:
33 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
G. Property Tax Receivable (continued)
City certifies mill levies to County December 15 Lien date January 1 Collection/due dates: Total April 30 First half February 28 Second half June 15 Delinquent notices August 15 Tax Sale Mid-November
H. Inventories
Inventories of a material amount are only maintained in the General Fund for fuel and the Golf Course Fund for clubhouse merchandise. These inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs of these inventories are recorded as expenditures or expenses when consumed rather than when purchased. All other inventories in the City are considered immaterial and are expensed when purchased. I. Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight- line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, as expenditures in the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Certain revenue is allocated each year to the Debt Service Fund to provide for the full amount estimated to be required for debt service on all general obligation debt.
Debt service for the Water and Water Reclamation Utility Funds and the Golf Course Fund is paid from monies provided by those funds.
34 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
J. Capital Assets
All capital assets, including “Public Domain” capital assets such as streets and sidewalks are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an individual cost of more than $5,000 and an estimated useful life in excess of two years. Capital assets are reported at original cost. Donated assets are valued at the fair market value on the date donated. Costs incurred for the purchase or construction of capital assets for governmental activities are recorded as capital outlay expenditures in the General and Capital Projects Funds. Infrastructure assets include streets, sidewalks, trails, traffic signals and similar items.
Costs incurred for the purchase, or construction of capital assets for business-type activities are reported as assets in the proprietary funds.
Interest is capitalized on proprietary fund assets acquired with tax exempt debt.
Depreciation of all exhaustible capital assets is charged as an expense against operations. Accumulated depreciation is reported on the government-wide financial statements and the proprietary fund types in the fund financials. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:
Buildings 50 years Improvements 10 - 25 years Equipment 5 - 10 years Water and Sewer Plants 50 years Water and Sewer Lines 50 years Infrastructure 30 - 50 years
K. Accrual for Compensated Absences
The City has a policy that allows employees to accumulate unused vacation and sick benefits up to certain maximum hours. Compensated absences are recognized when earned in proprietary fund types and when paid in governmental fund types. A liability for these amounts is reported in the government-wide financial statements. In the past, payments to liquidate the liability have been made through the General, Water, Water Reclamation, and Golf Course Funds.
35 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
L. Fund Balance/Net Assets
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. In the Statement of Net Assets, net assets are identified as restricted or unrestricted. Restricted net assets include net assets that are subject to restrictions beyond the City’s control. The definition of reserved includes more than resources that are restricted. Therefore, amounts reported as reserved fund balances in governmental funds will generally be different from amounts reported as restricted net assets in the Statement of Net Assets.
M. Special Assessments
Special assessments are recorded in governmental funds as revenue in the year that the assessments become available. This results in recognizing revenue only in the amount of assessment installments, as they are collected. The remaining assessed but uncollected installments are recorded as deferred revenue. The City has not reflected the special assessment interest as revenue or as a receivable at December 31, 2007, as such amounts are not considered currently available. Collection of delinquent interest is recorded as revenue when received.
36 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the government fund balance sheet and the government-wide statement of net assets
The government fund balance sheet includes reconciliation between fund balance-total governmental funds and net assets-governmental activities as reported in the governmental- wide statement of net assets. One element of that reconciliation explains that “some receivables are recorded as deferred revenue in governmental funds since they are not available for current period expenses.” The details of this $ 2,289,961 difference are as follows:
Special Assessments $ 1,762,730 Cemetery Endowment Care Earnings 958 WOW Note Receivable 5,697 Ambulance Accounts Receivable 266,248 Due from Insurance Company for Waneka Lake Boathouse Destruction 254,328 Net adjustment to reduce fund balance – total governmental funds to arrive at net assets – governmental activities $ 2,289,961
A second element of that reconciliation states that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.” The details of this $29,010,027 difference are as follows: Bonds Payable $ (27,180,000) Unamortized Debt Premium (31,621) Unamortized Charges - Refunding Bonds 618,594 Note Payable to Heritage Bank (765,942) Accrued Interest Payable (109,880) Capital Leases (1,172,625) Compensated Absences (796,418) Less amount included in Assets and Liabilities of Internal Service Funds 427,865 Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $ (29,010,027)
37 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (continued)
B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances-total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation states that “debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets.” The details of this $901,808 difference are as follows:
Debt issued or incurred: Capital Lease Proceeds $ (1,243,179) Principal Payments: Bond 2,025,000 Capital lease 84,862 Note Payable 35,125 Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net assets of governmental activities $ 901,808
A second element of that reconciliation states that “Some income reported in the Statement of Activities, although measurable, is not available, and is not reported as revenue in governmental funds.” The details of this $848,454 difference are as follows:
Decrease in Deferred Building Permit Fees $ (154,937) Increase in Special Assessments 452,423 Accrued Interest Receivable 77,493 Amortization of Bond Premium 6,593 Gain on Fire Conversion 199,677 Ambulance Services 266,247 Increase in Cemetery Trust Earnings 958 Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net assets of governmental activities $ 848,454
Another element of that reconciliation states that “Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.” The details of this $142,742 difference are as follows:
38 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCE STATEMENTS (continued)
B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities (continued)
Retirements of Capital Assets Net of Accum Depr $ (47,367) Less: Assets Included in Calculation of Fire Conversion 35,473 Increase in Compensated Absences not Reported Through Internal Service Funds (38,454) Decrease in Accrued Interest Payable 9,478 Amortization of - Issuance Costs (43,741) Deferred Amount on Refundings (58,131) Net adjustment to decrease net changes in fund balances total governmental funds to arrive at changes in net assets of governmental activities $ (142,742)
NOTE 3 CASH DEPOSITS AND INVESTMENTS
The City, through its Charter and Investment Policy, has adopted the State Statutes dealing with deposits and investments.
Deposits and investments at December 31, 2007, are summarized below:
Cash and Cash Deposits $ 1,402,228 Investments 50,982,403
Total $ 52,384,631
Deposits and investments are presented in the financial statements as follows: Unrestricted $ 42,999,633 Restricted 9,384,998
Total $ 52,384,631
39 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued)
Deposits:
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. State regulators determine eligibility. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool for all the uninsured public deposits as a group is to be maintained by another institution or held in trust. The market value of the collateral must be at least equal to 102% of the aggregate uninsured deposits. At December 31, 2007, the City had bank deposits of $1,392,793 held by the financial institutions’ agents but not in the City’s name.
Investments:
Colorado statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include: • Obligations of the United States and certain US government agency securities • Certain international agency securities • General obligation and revenue bonds of US local government entities • Bankers’ acceptances of certain banks • Commercial paper • Written repurchase agreements collateralized by certain authorized securities • Certain money market funds • Guaranteed investment contracts • Local government investment pools
At December 31, 2007, the City had the following investments: Investment Maturities (in Years) Standard & Poors Less Fair Investment Type Rating Than 1 1-3 4-5 Over 5 Value U.S. Treasury AAA $ 3,006,200 $ 5,090,100 $ - $ - $ 8,096,300 Money Market Mutual Funds AAA 2,365,722 - - - 2,365,722 U.S. Agency Securities AAA 7,019,200 19,938,950 6,176,800 - 33,134,950 Local Government Investment Pools AAA 7,008,431 - - - 7,008,431 Municipal Golf Course Revenue Bonds AAA 45,600 152,400 116,100 62,900 377,000
Totals $19,445,152 $25,181,450 $6,292,900 $62,900 $50,982,403
40 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued)
Investments (continued):
Interest Rate Risk – The City’s investment policy follows State statutes. 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 two or more nationally recognized statistical rating organizations (NRSROs), and GICs to the two highest ratings issued by NRSROs. State statutes also limit investments in money market funds to those that maintain a constant share price, with a maximum remaining maturity in accordance with Rule 2a-7, and either have assets of one billion dollars or the highest rating issued by a NRSRO.
Custodial Credit Risk – At December 31, 2007, the City’s investments held with Wells Fargo Brokerage Service for $41,231,250 are held in a safekeeping account and are protected against broker-dealer insolvency by the Securities Investor Protection Corporation.
Concentration of Credit Risk – Although State statutes do not limit the amount the City may invest in one issuer, the City’s investment policy does set limits. The limits are as follows: U.S. Government Treasury Securities 100%, U.S. Government Agency Securities 70%, Certificates of Deposit 40%, Repurchase Agreements 40%, Liquidity Funds 30%, and Domestic Bankers’ Acceptances 30%. At December 31, 2007, the City’s investment in Federal Home Loan Bank was 25%, Federal Farm Credit Bureau was 21%, Federal Home Loan Mortgage Corporation was 14%, and Federal National Mortgage Association was 6%.
Local Government Investment Pool - The City had invested $7,008,431 in the Colorado Government Liquid Asset Trust (Colotrust) at December 31, 2007. The trust is an investment vehicle established by state statute for local government entities in Colorado to pool surplus funds for investment purposes. It operates similarly to money market funds, and each share is equal in value to $1.00. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions of each pooled investment. The majority of securities owned by the Trust are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian’s internal records identify investments owned by the Trusts. The Trust investments consist of U.S. Treasury and U.S. Agency Securities and repurchase agreements collateralized by U.S. Treasury and U.S. Agency Securities. The Trust is registered with the Securities Commissioner of the State of Colorado as required by the Local Government Investment Pool Trust Fund Administration and Enforcement Act.
41 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 4 RESTRICTED CASH AND INVESTMENTS
In May 2001, the Colorado Water Resources and Power Development Authority issued Clean Water Revenue Bonds for the purpose of funding loans to various governmental organizations to finance costs of improvements to waste water treatment or storm water facilities. The City of Lafayette received $8,000,000 for construction of an addition to its waste water plant. The funds are held in escrow until released by an approved requisition request. The balance at December 31, 2007, is $193,081.
During July 2001, the City received $1,000,000 from the Northwest Parkway Public Highway Authority for capital projects and conservation easement acquisitions related to the Northwest Parkway Project. In 2003 utility lines and sleeves were installed during construction of the Parkway at a cost of $177,196. During 2004, $650,000 was committed for construction of White Tail Park in South Pointe, although only $450,124 was spent on the park. At December 31, 2007, the balance is $372,680.
When the City acquired the cemetery property in February 2002, trust accounts were included as part of the transactions. The trust accounts were established in prior years for pre- paid services and endowment care of the cemetery. At December 31, 2007, the balances in the trust accounts amounted to $71,751.
In December 2002, the Exempla General Improvement District was formed to continue the development of the 287/42 project, and refunding bonds were issued. The bond ordinance requires a debt service reserve in the amount of $1,090,500.
In April 2003, the City issued Water Revenue Bonds for the purpose of financing improvements to the water transmission and/or storage facilities and costs associated with joining and purchasing shares in water supply districts. These costs will be paid from available funds when they are incurred. The balance at December 31, 2007 is $6,610,986.
In May 2005, general obligation bonds in the amount of $6,000,000 were issued for the construction of a new police building. At December 31, 2007, $46,000 remained available for the final payment for construction.
In November 2007, the City received $1,000,000 from the Northwest Parkway Public Highway Authority for use in purchasing a parcel of land for open space. At December 31, 2007, the balance of this amount remaining was $1,000,000.
42 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 4 RESTRICTED CASH AND INVESTMENTS (continued)
In summary, restricted cash and investments at December 31, 2007 was as follows:
2001 Waste Water Expansion $ 193,081 Northwest Parkway Related Projects 372,680 Pre-need and endowment care trusts 71,751 Exempla GID 1,090,500 2003A Water Revenue Bonds 6,610,986 2005 General Obligation Bonds 46,000 Northwest Parkway Open Space Funds 1,000,000
Total Restricted Cash and Investments $ 9,384,998
43 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2007, was as follows:
Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets not being Depreciated Land $ 54,057,842 $ 1,930,130 $ - $ 55,987,972 Construction in Progress 15,833,768 55,632 (15,672,962) 216,438 Total Capital Assets, not being Depreciated 69,891,610 $ 1,985,762 (15,672,962) 56,204,410
Capital Assets Being Depreciated Buildings 15,261,953 5,355,015 (63,458) 20,553,510 Improvements Other Than Buildings 2,191,790 57,915 - 2,249,705 Infrastructure 51,630,573 15,731,786 - 67,362,359 Equipment 9,742,410 2,320,457 (511,714) 11,551,153 Total Capital Assets Being Depreciated 78,826,726 23,465,173 (575,172) 101,716,727
Less Accumulated Depreciation For: Buildings (4,298,825) (434,861) (4,733,686) Improvements Other than Buildings (1,748,430) (83,817) 25,776 (1,806,471) Infrastructure (19,384,558) (2,052,110) - (21,436,668) Equipment (7,462,529) (869,212) 502,029 (7,829,712) Total Accumulated Depreciation (32,894,342) (3,440,000) 527,805 (35,806,537)
Total Capital Assets being Depreciated, Net 45,932,384 20,025,173 (47,367) 65,910,190 Governmental Activities Capital Assets, net $ 115,823,994 $ 22,010,935 $ (15,672,962) $122,114,600
Business-Type Activities: Capital assets, not being depreciated Land $ 4,984,468 $ 14,365 $ - $ 4,998,833 Water Rights 24,664,544 742,061 - 25,406,605 Construction in Progress 740,180 1,048,885 - 1,789,065 Total Capital Assets, not being Depreciated 30,389,192 1,805,311 - 32,194,503
Capital assets, being Depreciated Buildings 1,566,590 57,416 - 1,624,006 Systems 72,899,917 5,325,705 - 78,225,622 Improvements other than Buildings 423,209 - - 423,209 Equipment 7,776,218 944,152 8,720,370 Total Capital Assets, being Depreciated 82,665,934 6,327,273 - 88,993,207
Less accumulated depreciation for: Buildings (489,884) (60,379) - (550,263) Systems (18,384,043) (1,675,172) - (20,059,215) Improvements other than buildings (268,582) (24,100) - (292,682) Equipment (4,446,209) (816,652) - (5,262,861) Total accumulated depreciation (23,588,718) (2,576,303) - (26,165,021)
Total Capital Assets being Depreciated 59,077,215 3,750,971 - 62,828,186 Business-type Activities Capital Assets, Net $ 89,466,407 $ 5,556,282 - $ 95,022,689
44 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 5 CAPITAL ASSETS (continued)
Depreciation expense was charged to function/program of the City as follows:
Governmental Activities General Government $ 178,861 Judicial 117 Public Safety 512,712 Public Works 1,841,899 Culture and Recreation 906,411 Total depreciation expense governmental activities $ 3,440,000
Business-type Activities Water $ 1,567,338 Water Reclamation 868,357 Golf Course 140,606 Total depreciation expense business-type activities $ 2,576,303
NOTE 6 LONG-TERM DEBT
A. Bonded Debt
The City of Lafayette and its component units have three types of bonded debt:
• General obligation (serial) bonds • Revenue (term) bonds • Demand bonds
General obligation bonds are direct obligations and pledge the full faith and credit of the City. The bonds have been issued for both governmental and business-type activities. General obligation bonds currently outstanding are as follows:
Governmental Activities 1998 Refunding and Improvement General Obligation Bonds mature annually through December 15, 2017, interest at 3.6% to 5.1% is paid semi-annually $ 2,360,000
2005 General Obligation Bonds mature annually through December 15, 2025, interest at 3.00% to 4.40% is paid semi-annually 5,575,000
$ 7,935,000
45 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
A. Bonded Debt (continued)
Business – type Activities 1999 General Obligation Water Refunding Bonds mature annually through December 1, 2012, interest at 3.25% to 4.55% is paid semi-annually $ 1,850,000
2003B General Obligation Water Refunding Bonds mature annually through December 1, 2012, interest at 2.00% to 3.90% is paid semi-annually 1,500,000
3,350,000
Total General Obligation Bonded Debt $ 11,285,000
The City has also issued bonds where revenues are pledged to pay the debt service. These bonds have also been issued for both governmental and business-type activities. Revenue bonds outstanding at year-end are as follows:
Governmental Activities 1999 Limited Tax General Obligation Bonds mature annually through December 1, 2018, interest of 5.75% is paid semi-annually (Lafayette City Center GID) $ 645,000
2006 General Obligation Refunding Bonds mature annually through December 1, 2036, interest of 6% is paid semi-annually (Lafayette Tech Center GID) 2,040,000
2002 Limited Tax General Obligation Refunding Bonds mature annually through December 1, 2031, interest at 8% is paid semi-annually (Lafayette Corp Campus GID) 2,590,000
2003C Sales and Use Tax Revenue Bonds mature annually through November 15, 2011, interest at 2.00% to 3.50% is paid semi-annually 2,965,000
8,240,000
46 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
A. Bonded Debt (continued)
Business-type Activities
2003A Water Revenue Bonds mature annually through December 1, 2023, interest at 4.00% to 5.25% is paid semi-annually 15,645,000
1992 Golf Revenue Bonds matured on October 15, 2002, final maturity extended to December 31, 2014, interest of 5.5% is paid annually 377,000
16,022,000
Total Revenue Bond Debt $ 24,262,000
The obligations of the Lafayette City Center GID, Lafayette Corporate Campus, and Lafayette Tech Center GID are not obligations of the City of Lafayette.
The 1992 Golf Revenue Bonds are carried as an investment by the Water Reclamation Fund. Adverse business conditions, made worse by the drought, have caused an extension of the final maturity date of these bonds. Annual graduated principal payments are scheduled through December 31, 2014.
Future annual debt service requirements to maturity for the general obligations and revenue bond issues are as follows:
Debt Governmental Activities Business-type Activities Requirement Year Principal Interest Principal Interest to Maturity
2008 $ 1,560,000 $ 788,533 $ 660,600 $ 913,090 $ 3,922,223 2009 1,615,000 734,506 693,100 888,052 3,930,658 2010 1,445,000 673,036 720,800 860,716 3,699,552 2011 1,265,000 616,962 748,500 830,769 3,461,231 2012 515,000 566,952 781500 798,099 2,661,551 2013-2017 3,000,000 2,432,818 4,167,500 3,482,688 13,083,006 2018-2022 2,585,000 1,712,965 5,085,000 2,439,912 11,822,877 2023-2027 2,330,000 1,001,004 6,515,000 1,012,438 10,858,442 2028-2032 1,330,000 425,200 - - 1,755,200 2033-2036 530,000 81,900 - - 611,900 Total $ 16,175,000 $ 9,033,876 $19,372,000 $ 11,225,764 $ 55,806,640
47 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
A. Bonded Debt (continued)
Demand bonds comprise the third type of bonded debt issued by the City of Lafayette. These bonds have been issued for governmental activities, but are not obligations of the City of Lafayette. Demand bonds outstanding at December 31, 2007, are as follows:
Exempla General Improvement District Special Assessment Revenue Refunding and Improvement Bonds, mature annually through December 1, 2022 $ 11,005,000
Total Demand Bond Debt $ 11,005,000
These bonds bear interest at flexible or variable rates and are subject to mandatory redemption upon conversion of the interest rate to a different rate type or rate period.
An initial irrevocable letter of credit was issued as collateral for the Exempla bonds for a maximum amount equal to the principal amount of the bonds, plus 35 days interest at a maximum annual rate of 10%. The initial letter of credit was replaced by an alternate letter of credit with an expiration date of January 29, 2008.
The issuer and the bank have entered into a reimbursement agreement as an integral part of the issued letters of credit. Among other things, the reimbursement agreement provides for repayment to the bank of all drawings made under the letters of credit, together with interest, fees, and other costs, certain affirmative and negative covenants to be observed on the part of the issuer, and certain indemnification obligations on the part of the issuer.
These bonds are not obligations of the City of Lafayette or the issuer. The debt service requirements must be met by the resources generated by the District.
As described above, these bonds currently bear interest at flexible or variable rates. The final interest rate on December 31, 2007 was 3.35%. At some time in the future, the rates will be converted to a fixed rate. Although interest rates in future periods may vary considerably, an interest factor of 3.35% has been used in projected annual debt service requirements.
Year Principal Interest Total
2008 $ 540,000 $ 368,668 $ 908,668 2009 565,000 350,578 915,578 2010 585,000 331,650 916,650 2011 610,000 312,053 922,053 2012 640,000 291,618 931,618 2013-2017 3,620,000 1,118,398 4,738,398 2018-2022 4,445,000 459,285 4,904,285 Total $ 11,005,000 $ 3,232,250 $ 14,237,250
48 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
B. Notes Payable
During 2001, the City entered into two long-term loans for construction projects, one involving a governmental activity, and the other, a business-type activity. A loan of $950,000 was obtained from Heritage Bank to construct a building, which was completed in 2002, for the Sister Carmen Community Center in a lease-purchase arrangement. The loan balance of $765,942 is payable in semi-annual installments of $39,945, including interest at 5.65%. Annual debt service requirements to maturity are:
Year Principal Interest Total
2008 $ 37,137 $ 42,752 $ 79,889 2009 39,266 40,624 79,890 2010 41,516 38,374 79,890 2011 43,894 35,995 79,889 2012 46,409 33,480 79,889 2013-2017 275,117 124,332 399,449 2018-2021 282,603 37,076 319,679 Total $ 765,942 $ 352,633 $ 1,118,575
In May 2001, the Water Reclamation Fund obtained an $8,000,000 loan from the Colorado Water Resources and Power Development Authority (CWRPDA) to construct an addition to the waste water treatment plant.
The City evidenced its obligation to repay the loan by issuing a bond to CWRPDA in an amount equal to the principal of the clean water bonds loaned to the City. Net revenues of the Water Reclamation Fund are pledged for repayment of the loan. The loan balance of $6,929,699 is payable in semi-annual installments. Annual debt service requirements to maturity have been calculated at an effective interest rate of 4.2% as follows:
Year Principal Interest Total
2008 $ 385,689 $ 265,516 $ 651,205 2009 403,570 249,695 653,265 2010 416,582 233,935 650,517 2011 435,155 217,619 652,774 2012 438,819 201,258 640,077 2013-2017 2,487,488 730,408 3,217,896 2018-2021 2,362,396 211,048 2.573,444 Total $ 6,929,699 $ 2,109,479 $ 9,039,178
49 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
B. Notes Payable (continued)
On February 15, 2006 the Water Fund acquired one unit of Windy Gap water and assumed a pro-rata portion of the related debt incurred by the Municipal Subdistrict of the Northern Colorado Water Conservancy District for the construction of the Windy Gap project. The total debt assumed was $174,417. Annual debt service payments are billed by the Municipal Subdistrict with the annual water assessments. The rate of interest is approximately 5%. Annual debt service requirements to maturity are:
Year Principal Interest Total
2008 $ 9,365 $ 7,894 $ 17,259 2009 12,615 7,426 20,041 2010 13,229 6,795 20,024 2011 13,885 6,134 20,019 2012 15,021 5,440 20,460 2013-2017 89,741 14,677 104,417 Total $ 153,856 $ 48,366 $ 202,220
C. Pledged Revenues
The 2003C Sales and Use Tax Revenue Bonds were issued to refinance the 1993 Sales and Use Tax Revenue Bonds. The bonds mature annually through November 15, 2011, with interest paid semi-annually at 2.00% to 3.50%. The debt is payable from a 3.00% municipal sales and use tax. During the year ended December 31, 2007, revenues of $8,619,750 were available to pay annual debt service of $801,078.
The 2003A Water Revenue Bonds were issued for the purpose of financing any or all of the following: the construction of a raw water transmission system, the purchase of real property and construction of a raw water storage facility, the payment of costs associated with fees for joining and purchasing shares in water supply districts, or the development of a reclaimed water transmission system for irrigation purposes. The bonds mature annually on December 1 from 2013 through 2027, with interest paid semi-annually at 4.00% to 5.25%. In 2006, the City assumed a pro-rata portion of the debt incurred by the Municipal Subdistrict of the Northern Colorado Water Conservancy District for the construction of the Windy Gap project. Payments are due in February with the annual water assessment, with interest at approximately 5.00%. Both debts are payable from net revenues of the City’s municipal water system. During the year ended December 31, 2007, revenues of $5,481,624 were available to pay annual debt service of $776,226.
50 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
C. Pledged Revenues (continued)
The City received a loan in 2001 from the Colorado Water Resources and Power Development Authority (CWRPDA) in order to finance the expansion of the City’s Water Reclamation facility. Debt service on the loan is payable semi-annually through 2021 with an interest of 4.20%. The loan is payable from net revenues of the City’s water reclamation system. During the year ended December 31, 2007, revenues of $966,118 were available to pay annual debt service of $653,251.
The 1992 Golf Course Revenue Bonds were issued to finance the construction of a municipal golf course. The bonds mature annually through December 31, 2014, with interest paid annually at 5.50%. The debt is payable from net revenues of the City’s golf course. During the year ended December 31, 2007, revenues of $259,405 were available to pay annual debt service of $66,311.
D. Capital Leases
In April 2006, the Golf Course Fund replaced the golf cart fleet at a cost of $186,330 by using a lease purchase arrangement. The future minimum lease obligations as of December 31, 2007 are as follows:
2008 $ 51,690 2009 51,690 2010 25,845 $ 129,225 Less amount representing interest (8,616) Present value of remaining base payments $ 120,609
In May 2007, the city entered into a lease purchase arrangement for ambulance service equipment at a cost of $202,190. The future minimum lease obligations as of December 31, 2007 are as follows:
2008 $ 72,800 2009 72,800 $ 145,600 Less amount representing interest (10,289) Present value of remaining base payments $ 135,311
51 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
D. Capital Leases (continued)
Due to the establishment by the city of a single stream recycling program, in September of 2007, five thousand five hundred recycling carts were leased from Boulder County, at a cost of $56.99 per cart, for a total of $313,445. The future minimum lease obligations as of December 31, 2007 are as follows:
2008 $ 60,000 2009 60,000 2010 60,000 2011 60,000 2012 60,000 2013 59,045 $ 359,045 Less amount representing interest (49,276) Present value of remaining base payments $ 309,769
In December of 2007 the fire department purchased a fire truck at a cost of $727,544 by using a lease purchase agreement. The future minimum lease obligations as of December 31, 2007 are as follows:
2008 $ 120,366 2009 120,366 2010 120,366 2011 120,366 2012 120,366 2013 120,366 2014 120,366 $ 842,562 Less amount representing interest (115,018) Present value of remaining lease payments $ 727,544
52 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 6 LONG-TERM DEBT (continued)
E. Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2007, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable General Obligation Bonds $ 8,680,000 $ - $ 745,000 $ 7,935,000 $ 775,000 Revenue Bonds 9,000,000 - 760,000 8,240,000 785,000 Demand Bonds 11,525,000 - 520,000 11,005,000 540,000 Total Bonds Payable 29,205,000 - 2,025,000 27,180,000 2,100,000 Deferred Amounts For Issuance Premiums 38,214 - 6,593 31,621 - On Refunding (676,725) - (58,131) (618,594) - Total Bonds Payable, Including deferred amounts 28,566,489 - 1,973,462 26,593,027 2,100,000 Notes Payable 801,067 - 35,125 765,942 38,238 Capital Leases 14,308 1,243,179 84,862 1,172,625 204,081 Compensated Absences 751,753 917,962 873,297 796,418 358,388 Governmental Activity long- term activities $30,133,617 $ 2,161,141 $ 2,966,746 $ 29,328,012 $2,700,707 Business-type Activities Bonds Payable General Obligation Bonds $ 3,955,000 $ - $ 605,000 $ 3,350,000 $ 615,000 Revenue Bonds 16,065,200 - 43,200 16,022,000 45,600 Total Bonds Payable 20,020,200 - 648,200 19,372,000 660,600 Deferred Amounts For Issuance Premiums 509,654 - 29,016 480,638 - On Refunding (216,740) - (34,009) (182,731) - Total Bonds Payable, Including deferred amounts 20,313,114 - 643,207 19,669,907 660,600 Notes Payable 7,468,268 - 384,713 7,083,555 395,054 Capital Leases 165,073 - 44,463 120,610 46,573 Business-type activity long- term activities $27,946,455 $ - $ 1,072,383 $ 26,874,072 $1,102,227
NOTE 7 AMENDMENT ONE
Colorado voters passed an amendment to the State Constitution, Article X, Section 20 (Amendment One), which has several limitations, including revenue raising limitations, spending limits, and other specific requirements of state and local governments. The Amendment is complex and subject to judicial interpretation. Over the course of several municipal elections and in accordance with state law, the citizens of Lafayette have exempted the City from the certain provisions of Article X, Section 20. The ballot issues allow the City to retain the current mill levy and all surplus tax revenues, and exempts the City from the spending limits noted in the State Constitution.
53 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 8 INTER-FUND TRANSFERS
The following inter-fund transfers occurred during 2007 for the purposes stated below.
Transfers Out Transfers In
General Debt Service Fund Description Amount Fund Fund Capital General Fund Capital Lease Payments $ 92,846 $ - $ 92,846 $ - Street Improvements 500,000 - - 500,000 Service Expansion Fund Liquidate Fund 120,780 120,780 - - Parks & Rec Acq & Dev Liquidate Fund 220,106 220,106 - - POST Open Space Fund Open Space Maintenance 195,572 195,572 - - Capital Projects Liquidate Fund 895,374 895,374 - Street Improvements 500,000 500,000 - Capital Leases 79,889 - 79,889 - PD Bond Proceeds 417,893 - 417,893 - Water Fund Administrative Charges 611,094 611,094 - - Water Reclamation Fund Administrative Charges 177,662 177,662 - - Storm Water Fund Administrative Charges 38,679 38,679 Golf Course Fund Administrative Charges 155,408 155,408 - - Reimburse for Golf Course Construction 432,582 432,582 - - $ 4,437,885 $ 3,347,257 $ 590,628 $ 500,000
NOTE 9 EMPLOYEE RETIREMENT PLANS
The City’s employees and volunteer fire fighters are covered under three separate retirement plans.
General Employees
The City offers its full-time employees and key management officials a retirement plan created in accordance with Internal Revenue Code (IRC) Section 401(a). Employees are eligible to participate in the plan on the first day of employment as a full-time employee. A full-time employee is any employee who is regularly scheduled to work at least 40 hours per week for the City and whose position is approved by City Council.
This plan is a defined contribution plan administered by a third party trustee. Under the terms of the plan, the City is the only non-employee contributor and contributes 10.2% of the participant’s salary (salary, pay or earned income less salary reductions made under IRC Section 125), and the participant is required to contribute 8% of salary. Contribution requirements of the City and the participants are established and may be amended by the City Council. During the year ended December 31, 2007, the City and employees made all required contributions to the plan, of $709,018 and $574,524, respectively.
An employee shall have a non-forfeitable interest in the percentage of the employer contribution account determined pursuant to the following vesting schedule. Forfeitures from
54 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 9 EMPLOYEE RETIREMENT PLANS (continued)
General Employees (continued)
the non-vested portion of terminated employees’ accounts are used to reduce the contribution required by the City.
Years of Percentage Service Vested 1 20% 2 40% 3 60% 4 80% 5 100%
An employee shall have a non-forfeitable interest in their entire employer account if they are employed by the city when they become disabled or die.
Voluntary after-tax contributions are allowed up to an additional 25% of the employee’s compensation.
Since a third party trustee holds the assets in trust, they are not reflected on the City’s financial statements.
Commissioned Police Officers, Firefighters, and Ambulance Personnel
In May 2005, the City, after approval by police officers and City Council, terminated the police money purchase retirement plan and transferred the assets to a defined benefit system administered by the Fire and Police Pension Association of Colorado (FPPA). Subsequently, the firefighters transferred their assets from the general employees’ retirement plan into the FPPA plan and the ambulance employees adopted this plan when they came on board.
During this process, every effort was made to retain continuity between the old and new plan provisions. Vesting applies at 20% per year with full vesting after 5 years. There are three different plan structures within the FPPA Defined Benefit System.
1. Statewide Money Purchase Plan and Money Purchase component of the Statewide Hybrid Plan, 2. Defined Benefit component of the Statewide Hybrid Plan, and 3. Statewide Defined Benefit Plan.
Police officers employed on May 1, 2005, may elect the Statewide Hybrid Plan with contributions the same as with the old plan (8% employee & 10.2% City), or the Statewide Defined Benefit Plan with contributions of 9.8% employee and 10.2% from the City.
55 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 9 EMPLOYEE RETIREMENT PLANS (continued)
Commissioned Police Officers, Firefighters, and Ambulance Personnel (continued)
Police officers and firefighters hired after May 1, 2005 and ambulance employees are covered under the Statewide Defined Benefit Plan with contributions of 8% from the employee and 8% from the City. The remaining 2.2% contributed by the City is paid into the money purchase plan of the general employees for the police officers, firefighters, and ambulance personnel.
The assets for the accounts transferred from the old plan were place in the Money Purchase component of the Statewide Hybrid Plan.
During the years ended December 31, 2007 and 2006, the City and the employees made all required contributions to old and new plans, of $304,762 and $283,599 for 2007 and $264,148 and $243,749 for 2006, respectively.
An employee shall have a non-forfeitable interest in their entire employer account if they are employed by the City when they become disabled or die.
Since a third party trustee holds the assets in trust, they are not reflected on the City’s financial statements.
Volunteer Fire Fighters
Plan Description - The City provides a defined benefit pension plan for volunteer firefighters as established by Title 31, Article 30, Section 401 of the Colorado Revised Statutes. The Colorado Fire & Police Pension Association (FPPA) administers this agent multiple employer plan. Any firefighter who has both attained the age of fifty and completed twenty years of active service shall be eligible for a monthly pension. A firefighter who is disabled in the line of duty and whose disability is considered permanent shall be compensated in an amount determined by the Board of Trustees to be reasonable and proper considering the financial condition of the fund. The Plan also provides for a lump-sum burial benefit upon the death of an active or retired firefighter.
Spouses of deceased firefighters may receive benefits as authorized by State Statute. The annual financial report of FPPA may be obtained by contacting FPPA.
Funding Policy - The Volunteer Firefighters’ Pension Plan receives contributions from the City in an amount not to exceed one-half mill of property tax revenue. As established by the legislature, the State of Colorado contributes ninety percent of the City’s contribution up to the $300 per month normal retirement benefit level. For monthly benefits beyond $300, the State contribution is limited to the City’s contribution before the increase in benefits. The contributions are actuarially determined. An actuary is used to determine the adequacy of contributions.
56 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 9 EMPLOYEE RETIREMENT PLANS (continued)
Volunteer Fire Fighters (continued)
The actuarial study as of January 1, 2007, presented the required contribution level for four different plan options available through the Fire & Police Pension Association. Effective January 1, 2007, the City is funding normal retirement benefits of $525 per month. As a result, the accumulated contributions in excess of the required contributions under the previous benefit level have been applied to the unfunded liability balance of the increased benefit level. The actuarial study as of January 1, 2007, indicated that the current level of contributions to the fund are adequate to support the prospective benefits for the present plan on an actuarially sound basis.
Annual Pension Cost - For the year ended December 31, 2007, The City and State actual contributions of $89,986 and $42,222, respectively, did equal the required contribution. The required contribution was determined as part of the January 1, 2007 actuarial valuation using the entry age normal cost method. Actuarial assumptions included the following:
1. Interest rate - 8.0% per annum, compounded annually, net of operating expenses 2. Retirement age - Age 50 and 20 years of service 3. Disability - Graduated rates for all disabilities 4. Mortality - 1994 Group Annuity Mortality Table 5. Separation - Graduated rates for all withdrawals 6. Marital Status - 90% married, with males being three years older 7. Asset Valuation - Three-year smoothed method 8. Inflation - 4.0%
Based on an amortization period of twenty years using the level dollar method on an open basis, the Plan’s expected contributions equal the amount recommended to eliminate the unfunded actuarial accrued liability.
Trend Information of the Plan follows: Percentage Net Pension Fiscal Year Annual Pension of APC Obligation Funding Cost (APC) Contributed (Excess)
12/31/2004 118,716 100% - 12/31/2005 132,208 100% - 12/31/2006 132,208 100% - 12/31/2007 132,208 100% -
57 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 10 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees; or acts of God. For these risks of loss, the City acquires insurance for property liability, police professional liability, errors and omissions, excess liability, and crime coverage through the Colorado Intergovernmental Risk Sharing Agency (CIRSA). The City does not exercise oversight responsibility nor does it exercise significant influence over CIRSA’s operations. Premiums and coverage obtained from CIRSA are comparable to those provided by commercial carriers.
CIRSA is an organization created by an intergovernmental agreement to provide property, general and automobile liability, and public official coverage to its members. Coverage is provided through CIRSA self-funding and various excess insurance contracts that limit maximum losses and minimize exposure on large risks. CIRSA does not have a legal obligation to pay losses or loss adjustment expenses in excess of its annually established loss fund and amounts recoverable under excess specific aggregate insurance contracts. Losses and loss adjustment expenses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members.
The City continues to carry commercial insurance coverage for other risks of loss including workers compensation and employee health and accident insurance. The amount of settlements has not exceeded insurance coverage in any of the past three fiscal years.
The Insurance Fund, an internal service fund, was established to account for claims and insurance premiums related to property and liability risks. The City is responsible for the first $25,000 of each claim.
Changes in the balances of claims liabilities during the past two years are as follows:
Dec. 31, Claims Claims Dec. 31, Claims Claims Dec. 31, 2005 Incurred Paid 2006 Incurred Paid 2007 Property & Liability $6,362 $41,247 $46,419 $1,190 $206,598 $207,788 $0
The City established the Employee Benefit Fund, an internal service fund to manage and account for the rising costs of all employee insurance benefits. Under the provisions of the current employee health insurance plan, the City pays a fixed monthly premium, per participant, and is fully insured.
58 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 11 ASSETS HELD FOR RESALE
In March 2002, the City of Lafayette acquired property occupied by the Albertson’s store in Countryside Village Shopping Center as part of an overall plan of urban renewal. The City leased the property back to Albertson’s until the business was moved to the new store location in June 2003. The City of Lafayette was actively marketing the acquired property until Wal-Mart (adjacent property) presented a proposal for moving to a new location within the City. The properties are both located in the Urban Renewal District. Since the properties are adjacent and in a prime location, the City now plans to either sell the Albertson’s lot or redevelop both properties together since Wal-Mart has vacated its current location. The City is currently leasing large portions of the old Albertson’s building pending sale or redevelopment.
The cost of the property was $2,372,182. At December 31, 2007, it was determined that the approximate fair market value of the property is $2,031,968. The carrying value was adjusted by $72,182 in 2003. It was adjusted another $268,032 in 2004.
NOTE 12 PRIOR INFRASTRUCTURE
Before the issuance of GASB Statement 34, dedicated infrastructure, land for parks and open space, and street rights-of-way, were not recorded on the financial records of the City, nor included in any previous Comprehensive Annual Financial Report (CAFR) until the year ended December 31, 2001. At that time, only prospective infrastructure dedications were reported through the year ended December 31, 2006. Dedicated land and rights-of-way were not considered.
For the year ended December 31, 2007, the City has researched, beginning in 1980, and recorded dedicated infrastructure, land, and streets rights-of-way. The derived costs and calculated depreciation, if applicable, have been reported in the CAFR for the year ended December 31, 2007. The capital asset balances and related depreciation have been restated as of December 31, 2006, for such assets acquired prior to 2007.
The resulting adjustment for the prior years is as follows: Cost Depreciation Governmental activities – Land and Rights of way $ 37,458,845 $ - Infrastructure 36,632,694 17,965,234 $ 74,091,539 $ 17,965,234
Business-type activities – Systems $ 11,422,554 $ 2,711,163
59 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 12 PRIOR INFRASTRUCTURE (continued)
The beginning Net Asset balances are increased $56,126,305 for governmental activities and $8,711,391 for business-type activities. The resulting Net Asset balances at December 31, 2006, are as follows:
Governmental Business-type Activities Activities Total Net assets, December 31, 2006 $ 55,365,358 $ 82,938,932 $ 138,304,290 Adjustment for land and infrastructure 56,126,305 8,711,391 64,837,695 Net Assets, December 31, 2006, as restated $ 111,491,663 $ 91,650,323 $ 203,141,985
NOTE 13 CONDUIT DEBT
In 1998 and 1999, the City issued $8,470,000 of Industrial Development Revenue Bonds for the purpose of providing capital financing for Rocky Mountain Instruments Co. The balance outstanding at December 31, 2007 was $5,875,000.
The bonds are payable solely from the revenues and receipts pledged under this indenture. The bonds do not constitute a debt of the City of Lafayette and are not a pledge of the full faith and credit or taxing power of the City.
NOTE 14 COMMITMENTS AND CONTINGENCIES
The City has received federal grants to assist with the construction of facilities and other projects. Under the terms of the grant agreements, such grants are subject to review and audit by the Grantor. Such audits could lead to a request for reimbursements to the Grantor for expenditures disallowed. City management believes any disallowance would be immaterial.
On September 3, 2002 the City of Lafayette signed an Intergovernmental agreement with the City of Louisville and Boulder County regarding the acquisition, by the City of Lafayette, of a 25% interest in the Mayhoffer property, in the vicinity of the Northwest Parkway. The property interest may be acquired by the City of Lafayette at any time through 2008. The initial cost of $751,592 increases by 5% per annum until 2008, when the cost becomes $1,057,566. Funding for this acquisition was received from the Northwest Parkway Public Highway Authority in 2007. The City of Lafayette has subsequently acquired the interest in the property in 2008.
In 2007 the City of Lafayette participated in an energy audit with the State of Colorado and a private engineering company for the purpose of determining potential energy savings. In February 2008, the City entered into an energy performance contract for the construction and installation of equipment in various City facilities financed by a lease purchase agreement in
60 CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2007
NOTE 14 COMMITMENTS AND CONTINGENCIES (continued)
the amount of $1.1 million. The repayment of the debt is scheduled over 10 years at 3.8%. It is the intent of the program for the energy savings to pay for the debt obligation.
In November 2007, the voters approved a Sales & Use tax revenue bond issue for the purpose of funding needed street repairs and recreation center addition. In April 2008, the bonds were sold under a private placement arrangement to a bank. The bonded debt was increased by $6.9 million with interest at 3.31% for 10 years.
NOTE 15 PENDING LITIGATION
The City of Lafayette is involved in litigation for which the outcome is unknown.
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62 REQUIRED SUPPLEMENTARY INFORMATION
FINANCIAL SECTION
2007
CITY OF LAFAYETTE, COLORADO SCHEDULE OF FUNDING PROGRESS VOLUNTEER FIRE FIGHTER'S PENSION PLAN December 31, 2007
Actuarial Valuation Date 1/1/2007 1/1/2005 1/1/2003 1/1/2001 1/1/1999 $500 Level $500 Level $475 Level $450 Level $450 Level $300 Level
Actuarial Value of Assets (a)$ 1,206,349 $ 1,025,695 $ 1,001,398 $ 1,110,995 $ 953,745 $ 953,745
Actuarial Accrued Liability-entry age (b) 2,123,394 2,153,723 1,905,576 1,833,842 1,711,392 1,065,766
Unfunded Actuarial Accrued Liability (b-a)$ 917,045 $ 1,128,028 $ 904,178 $ 722,847 $ 757,647 $ 112,021
Funded ratio (a/b) 57% 48% 53% 61% 56% 89%
Covered payroll N/A N/A N/A N/A N/A N/A
63 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Taxes Property Taxes$ 2,552,275 $ 2,552,275 $ 2,566,965 $ 14,690 Fire District Tax 5,300 5,300 5,300 - Specific Ownership Tax 224,727 224,727 254,192 29,465 General Sales & Use Tax 7,115,036 7,115,036 5,927,913 (1,187,123) Other Use Tax - - 1,728,900 1,728,900 Total Taxes 9,897,338 9,897,338 10,483,270 585,932
License and Permits Business Licenses 10,080 10,080 10,890 810 Contractor Licenses 37,000 37,000 38,414 1,414 Liquor Licenses 8,970 8,970 9,463 493 Construction Permits 250,000 250,000 240,037 (9,963) Mobile Home Permits 10,370 10,370 6,154 (4,216) Miscellaneous Licenses 2,215 2,215 4,401 2,186 Total Licenses and Permits 318,635 318,635 309,359 (9,276)
Intergovernmental State and Federal Grants 98,909 434,249 514,867 80,618 Cigarette Tax 25,000 25,000 29,506 4,506 Motor Vehicle Registration 72,000 72,000 80,169 8,169 County Road and Bridge Tax 52,000 52,000 32,073 (19,927) Highway Users Tax 568,997 568,997 614,390 45,393 Nutrition Grant 15,733 15,733 32,724 16,991 Total Intergovernmental 832,639 1,167,979 1,303,729 135,750
Fines and Forfeitures Fines 947,186 947,186 808,667 (138,519) Court Costs 39,665 39,665 43,188 3,523 Total Fines and Forfeitures 986,851 986,851 851,855 (134,996)
Interest and Other Franchise Taxes 766,610 766,610 868,106 101,496 Interest 300,000 300,000 515,946 215,946 PEG Fees 27,000 27,000 30,926 3,926 Public Art Fees 10,000 40,000 42,791 2,791 Contributions and Misc Grants 35,219 86,734 213,606 126,872 Property Sales 15,000 15,000 (1,820) (16,820) Community Fundraiser 18,000 47,694 49,018 1,324 Total Interest and Other 1,171,829 1,283,038 1,718,573 435,535
64 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Charges for Services Building Fees 223,434 223,434 187,253 (36,181) Culture and Recreation Fees 1,256,370 1,276,967 1,458,984 182,017 Cemetery Fees 9,200 9,200 12,425 3,225 Administrative Fees 48,615 48,615 46,025 (2,590) Misc Rentals 93,569 93,569 109,272 15,703 Pawn Shop Fees 6,000 6,000 7,004 1,004 Police Service Fees 7,900 7,900 37,612 29,712 Ambulance Fees 576,241 576,241 253,490 (322,751) Solid Waste and Recycling Fees - 170,946 134,355 (36,591) Miscellaneous Services 104,460 127,884 57,088 (70,796)
Total Charges for Services 2,325,789 2,540,756 2,303,508 (237,248)
Total Revenues 15,533,081 16,194,597 16,970,294 775,697
See the accompanying independent auditors' report.
65 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Expenditures General Government City Council$ 101,193 $ 142,493 $ 109,625 $ 32,868 Non-Departmental 534,905 539,905 453,672 86,233 City Administrator 204,950 206,530 199,879 6,651 City Clerk 170,626 197,695 213,802 (16,107) Community Development 403,973 435,502 378,119 57,383 Finance Administrative Services 144,298 145,535 137,486 8,049 Human Resources 296,384 298,392 282,507 15,885 Financial Services 502,519 506,852 410,598 96,254 Information Systems 422,494 526,731 532,418 (5,687) Planning & Building 718,024 724,308 685,884 38,424 General Building Maintenance 714,943 718,584 661,852 56,732 Total General Government 4,214,309 4,442,527 4,065,842 376,685
Judicial City Attorney 197,454 197,454 193,038 4,416 Municipal Court 111,786 112,802 117,480 (4,678) Total Judicial 309,240 310,256 310,518 (262)
Public Safety Police 4,628,439 4,699,058 4,674,748 24,310 Fire 827,057 862,139 816,214 45,925 Ambulance 618,884 715,234 840,732 (125,498) Total Public Safety 6,074,380 6,276,431 6,331,694 (55,263)
Public Works Administration - Public Works 1,306,851 1,410,346 1,520,797 (110,451) Solid Waste & Recycling - 180,946 203,353 (22,407) Total Public Works 1,306,851 1,591,292 1,724,150 (132,858)
Culture and Recreation Administration- Parks, OS, & Golf 151,385 152,616 144,652 7,964 Cemeteries 109,162 109,581 95,258 14,323 Parks 659,546 693,087 672,340 20,747 Open Space Maintenance 287,893 294,792 198,469 96,323 Administration- Recreation & Fac Mgt 255,894 257,505 260,909 (3,404) Leisure Services 454,530 466,665 383,125 83,540 Recreation Center 1,314,017 1,344,367 1,082,337 262,030 Public Library 1,150,058 1,219,058 1,190,162 28,896 Cultural Arts 23,300 37,381 19,971 17,410 Senior Citizens 266,080 279,559 302,444 (22,885) Total Culture and Recreation 4,671,865 4,854,611 4,349,667 504,944
66 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Capital Outlay 1,202,228 2,135,948 1,681,179 454,769
Total Expenditures 17,778,873 19,611,065 18,463,050 1,148,015
Excess (Deficiency) of Revenues Over Expenditures (2,245,792) (3,416,468) (1,492,756) 1,923,712
Other Financing Sources (Uses) Issuance of Debt 750,000 952,055 1,243,179 291,124 Transfers In 1,668,770 2,913,576 3,347,257 433,681 Transfers Out (196,402) (748,014) (592,846) 155,168
Total Other Financing Sources (Uses) 2,222,368 3,117,617 3,997,590 879,973
Net Changes in Fund Balance (23,424) (298,851) 2,504,834 2,803,685
Fund Balance, January 1 8,817,471 8,817,471 8,817,471 -
Fund Balance, December 31, Budgetary Basis $ 8,794,047 $ 8,518,620 $ 11,322,305 $ 2,803,685
See the accompanying independent auditors' report.
67 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE URBAN RENEWAL AUTHORITY For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Property Tax 76,661 76,661 85,585 8,924 Sales and Use Tax 63,418 63,418 58,779 (4,639) Rents - Albertson's 48,735 48,735 74,969 26,234 Interest 30,000 30,000 42,501 12,501
Total Revenues 218,814 218,814 261,834 43,020
Expenditures Current General Government 100,650 401,150 252,992 148,158
Total Expenditures 100,650 401,150 252,992 148,158
Excess (Deficiency) of Revenue over Expenditures 118,164 (182,336) 8,842 191,178
Net Changes in Fund Balance 118,164 (182,336) 8,842 191,178
Fund Balance, January 1 760,313 760,313 760,313 -
Fund Balance, December 31 $ 878,477 $ 577,977 $ 769,155 $ 191,178
See the accompanying independent auditors' report.
68 CITY OF LAFAYETTE NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2007
NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements.
On or before September 20, the City Administrator submits to the City Council a proposed budget for the subsequent fiscal year commencing January 1. This budget includes proposed expenditures and the means of financing them. The budget is presented at the fund level, but includes supporting schedules presented at the sub- object (or account) level. The City uses generally accepted accounting principals (GAAP) as the basis for budgeting revenues and expenditures for all funds except for proprietary funds. In the proprietary funds, certain capitalized receipts and disbursements are budgeted along with related revenues and expenses.
A Public Hearing on the proposed budget is held before its final adoption to obtain any comments from citizens.
On or before the last Thursday in October for the ensuing year, the budget is legally enacted through the adoption of an appropriation ordinance at the fund level.
Budget revisions occur at the fund level and may only be made through Council Ordinance. The City Administrator may re-allocate the budget between Departments. Department Heads, with the approval of the City Administrator and Finance Director, may re-allocate the total budget within a Department.
The City Council may make additional appropriations during the fiscal year for unanticipated revenues received by the City. Such appropriations are approved on a consensus basis by the City Council throughout the year.
After October 1 of the fiscal year, all previous appropriations amendments are formally adopted at the fund level by ordinance.
All appropriations, except for capital projects, lapse at year-end. Any unspent appropriations may be carried forward to the subsequent budget year with the approval of a budget amendment by City Council. Capital projects appropriations are automatically carried forward until completion of the projects.
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70 OTHER SCHEDULES
FINANCIAL SECTION
This section consists of the following: • Nonmajor Governmental Funds • Internal Service Funds
2007
CITY OF LAFAYETTE, COLORADO NONMAJOR GOVERNMENTAL FUNDS December 31, 2007
Special Revenue Funds
Special Revenue Funds are used to account for specific revenue sources that are legally restricted to expenditures for specific purposes. The City’s Special Revenue Funds account for the following blended component units of the city set up to account for acquisition, improvements, and facilities within the Districts. Following are the special revenue funds included in this section:
• Lafayette City Center General Improvement District • Lafayette Corporate Campus General Improvement District • Lafayette Tech Center General Improvement District • Exempla General Improvement District
Capital Projects Funds
The Capital Projects Funds are used to account for the acquisition of construction of major capital facilities other than those financed by proprietary fund types. The City’s Capital Projects Funds account for the following capital projects included in this section.
• Service Expansion Fund
To account for fees collected on new residential construction and commercial development through the building permit process. The purchase or construction of facilities and equipment deemed necessary by the City Council due to the growth of the City is financed through this fund.
• Parks and Recreation Acquisition and Development Fund
To account for the accumulation of funds collected on new residential construction and cash received in lieu of land restricted for construction of new park facilities, major expansion or renovation of existing parks, and for the purchase of capital equipment used specifically for parks acquisition and development.
• Conservation Trust Fund
To account for the accumulation of monies received annually from the proceeds of the Colorado State Lottery. Expenditures related to the maintenance of existing parks and recreation infrastructure are recorded in this fund.
• Storm Drainage Fund
To account for fees collected on new residential construction and commercial development through the building permit process and expenditures related to the expansion of the City’s storm drainage system due to the development of property within the City.
71 CITY OF LAFAYETTE, COLORADO NONMAJOR GOVERNMENTAL FUNDS December 31, 2007
Capital Projects Funds (continued)
• Legacy Open Space Fund
To account for sales and use taxes collected for the acquisition of open space.
• Parks, Open Space, & Trails (POST) Open Space Fund
To account for sales and use taxes collected for the acquisition, development, and maintenance of parks and open space.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of resources and payment of bond principal and interest from governmental resources. The City’s Debt Service Fund accounts for the following issues:
• Revenue Bonds: Sales and Use Tax Refunding Bonds, Series 2003 ($6,360,000) – to accumulate monies for the payment of these bonds, financed solely by sales and use tax revenues. These bonds are due in annual installments plus interest, until maturity in 2011.
• Fire/Library Bonds: General Obligation Fire/Library Bonds, Series 1998 ($4,695,000) – to accumulate monies for the payment of these bonds, financed by general ad valorem taxes levied against all taxable property within the City. These bonds are due in annual installments plus interest, until maturity in 2017.
• Police Bonds: General Obligation Bonds, Series 2005 ($6,000,000) – financed by general ad valorem taxes levied against all taxable property within the City. The bond principal is due annually, including interest (paid semi-annually) until maturity in 2025.
• Capital Leases: The Debt Service Fund also accounts for Capital leases on the Sister Carmen building and Dynix Library Software.
72 CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2007
Special Capital Debt Revenue Projects Service Assets Funds Funds Fund Total
Cash and Investments$ 1,919,898 $ 3,695,552 $ 351,785 $ 5,967,235 Accrued Interest Receivable 25,300 41,479 3,249 70,028 Accounts Receivable 2,376 - - 2,376 Property Taxes Receivable 467,794 - 840,954 1,308,748 Restricted Cash and Investments 1,090,500 1,000,000 - 2,090,500 Special Assessments Receivable 1,019,761 - - 1,019,761
Total Assets $ 4,525,629 $ 4,737,031 $ 1,195,988 $ 10,458,648
Liabilities and Fund Balance
Liabilities Accounts Payable$ 795 $ 7,788 $ - $ 8,583 Deposits Payable 75,000 - - 75,000 Deferred Revenues 1,487,555 - 840,954 2,328,509
Total Liabilities 1,563,350 7,788 840,954 2,412,092
Fund Balance Reserved for GID Expenditures 2,749,378 - - 2,749,378 Reserved for Capital Projects - 1,000,000 - 1,000,000 Unreserved, reported by Special Revenue Funds 212,901 - - 212,901 Capital Projects Funds - 3,729,243 - 3,729,243 Debt Service Fund - - 355,034 355,034
Total Fund Balance 2,962,279 4,729,243 355,034 8,046,556
Total Liabilities and Fund Balance $ 4,525,629 $ 4,737,031 $ 1,195,988 $ 10,458,648
See the accompanying independent auditors' report.
73 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2007
Special Capital Debt Revenue Projects Service Funds Funds Fund Total Revenues Taxes Property Tax$ 451,234 $ - $ 1,127,605 $ 1,578,839 Specific Ownership Tax 31,521 - - 31,521 Building Use Tax - 86,630 15,023 101,653 Vehicle Use Tax - 204,654 102,312 306,966 General Sales Tax - 1,169,790 541,543 1,711,333
Total Taxes 482,755 1,461,074 1,786,483 3,730,312
Licenses and Permits - 112,371 - 112,371 Intergovernmental - State Grants - 243,411 - 243,411 Assessment Principal 520,000 - - 520,000 Assessment Interest 541,242 - - 541,242 Interest 204,373 277,122 40,847 522,342 Contributions and Misc Grants - 1,011,655 - 1,011,655 Administrative Fees 15,000 - - 15,000 Miscellaneous Revenue 5,025 - - 5,025
Total Revenues 1,768,395 3,105,633 1,827,330 6,701,358
Expenditures Current General Government 65,284 10,232 21,013 96,529 Public Works - 27,892 - 27,892 Cultural and Recreation - 17,418 - 17,418
Capital Outlay - 1,957,410 - 1,957,410
Debt Service Capital Lease and Loan Payments - - 172,735 172,735 Principal 585,000 - 1,440,000 2,025,000 Interest and Fiscal Charges 923,310 - 467,518 1,390,828
Total Expenditures 1,573,594 2,012,952 2,101,266 5,687,812
Excess (Deficiency) of Revenues over Expenditures 194,801 1,092,681 (273,936) 1,013,546
74 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2007
Special Capital Debt Revenue Projects Service Funds Funds Fund Total Other Financing Sources (Uses) Transfers In - - 590,628 590,628 Transfers (Out) - (536,458) - (536,458)
Total Other Financing Sources (Uses) - (536,458) 590,628 54,170
Net Change in Fund Balance 194,801 556,223 316,692 1,067,716
Fund Balance, January 1 2,767,478 4,173,020 38,342 6,978,840
Fund Balance, December 31 $ 2,962,279 $ 4,729,243 $ 355,034 8,046,556
See the accompanying independent auditors' report.
75 CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2007
Lafayette Lafayette Lafayette City Center Corp Campus Tech Center GID GID GID Assets
Cash and Investments$ 93,724 $ 189,136 $ 47,508 Accrued Interest Receivable 943 2,492 689 Accounts Receivable 338 1,268 444 Property Taxes Receivable 71,658 248,864 73,939 Restricted Cash and Investments - - - Special Assessments Receivable - 254,940 -
Total Assets $ 166,663 $ 696,700 $ 122,580
Liabilities and Fund Balance
Liabilities Accounts Payable $ - $ - $ - Deposits Payable 75,000 - - Deferred Revenues 71,658 503,804 73,939
Total Liabilities 146,658 503,804 73,939
Fund Balance Reserved for GID Expenditures - - 48,641 Unreserved, Undesignated 20,005 192,896 -
Total Fund Balance 20,005 192,896 48,641
Total Liabilities and Fund Balance $ 166,663 $ 696,700 $ 122,580
Continued
76 Exempla GID Total Assets
Cash and Investments$ 1,589,530 $ 1,919,898 Accrued Interest Receivable 21,176 25,300 Accounts Receivable 326 2,376 Property Taxes Receivable 73,333 467,794 Restricted Cash and Investments 1,090,500 1,090,500 Special Assessments Receivable 764,821 1,019,761
Total Assets $ 3,539,686 $ 4,525,629
Liabilities and Fund Balance
Liabilities Accounts Payable $ 795 $ 795 Deposits Payable - 75,000 Deferred Revenues 838,154 1,487,555
Total Liabilities 838,949 1,563,350
Fund Balance Reserved for GID Expenditures 2,700,737 2,749,378 Unreserved, Undesignated - 212,901
Total Fund Balance 2,700,737 2,962,279
Total Liabilities and Fund Balance $ 3,539,686 $ 4,525,629
See the accompanying independent auditors' report.
77 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For the fiscal year ended December 31, 2007
Lafayette Lafayette Lafayette City Center Corp Campus Tech Center GID GID GID Revenues Property Taxes$ 72,395 $ 248,213 $ 67,770 Specific Ownership Taxes 4,948 16,732 5,859 Total Taxes 77,343 264,945 73,629
Assessment - Principal - - - Assessment - Interest - - - Interest 7,230 17,408 5,258 Administrative Fee - - - Miscellaneous Revenue - - -
Total Revenues 84,573 282,353 78,887
Expenditures Current General Government 9,486 14,065 16,004 Debt Service Principal 30,000 35,000 - Interest and Fiscal Charges 38,812 210,000 132,600 Total Expenditures 78,298 259,065 148,604
Excess (Deficiency) of Revenues over Expenditures 6,275 23,288 (69,717)
Net Change in Fund Balance 6,275 23,288 (69,717)
Fund Balance, January 1 13,730 169,608 118,358
Fund Balance, December 31 $ 20,005 $ 192,896 $ 48,641
Continued
78 Exempla GID Total Revenues Property Taxes$ 62,856 $ 451,234 Specific Ownership Taxes 3,982 31,521 Total Taxes 66,838 482,755
Assessment - Principal 520,000 520,000 Assessment - Interest 541,242 541,242 Interest 174,477 204,373 Administrative Fee 15,000 15,000 Miscellaneous Revenue 5,025 5,025
Total Revenues 1,322,582 1,768,395
Expenditures Current General Government 25,729 65,284 Debt Service Principal 520,000 585,000 Interest and Fiscal Charges 541,898 923,310 Total Expenditures 1,087,627 1,573,594
Excess (Deficiency) of Revenues over Expenditures 234,955 194,801
Net Changes in Fund Balance 234,955 194,801
Fund Balance, January 1 2,465,782 2,767,478
Fund Balance, December 31 $ 2,700,737 $ 2,962,279
See the accompanying independent auditors' report.
79 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE CITY CENTER GID SPECIAL REVENUE FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Property Taxes$ 72,395 $ 72,395 $ 72,395 $ - Specific Ownership Taxes 5,104 5,104 4,948 (156) Interest 5,500 5,500 7,230 1,730
Total Revenue 82,999 82,999 84,573 1,574
Expenditures Current General Government 14,186 14,186 9,486 4,700 Debt Service Principal 30,000 30,000 30,000 - Interest and Fiscal Charges 38,813 38,813 38,812 1
Total Expenditures 82,999 82,999 78,298 4,701
Net Change in Fund Balance - - 6,275 6,275
Fund Balance, January 1 13,730 13,730 13,730 -
Fund Balance, December 31 $ 13,730 $ 13,730 $ 20,005 $ 6,275
See the accompanying independent auditors' report.
80 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE CORPORATE CAMPUS GID SPECIAL REVENUE FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Property Taxes$ 242,854 $ 242,854 $ 248,213 $ 5,359 Specific Ownership Taxes 10,314 10,314 16,732 6,418 Interest 11,300 11,300 17,408 6,108
Total Revenue 264,468 264,468 282,353 17,885
Expenditures Current General Government 23,288 23,288 14,065 9,223 Debt Service Principal 35,000 35,000 35,000 - Interest and Fiscal Charges 206,180 206,180 210,000 (3,820)
Total Expenditures 264,468 264,468 259,065 5,403
Net Change in Fund Balance - - 23,288 23,288
Fund Balance, January 1 169,608 169,608 169,608 -
Fund Balance, December 31 $ 169,608 $ 169,608 $ 192,896 $ 23,288
See the accompanying independent auditors' report.
81 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE TECH CENTER GID SPECIAL REVENUE FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Property Taxes$ 158,162 $ 158,162 $ 67,770 $ (90,392) Specific Ownership Taxes 10,000 10,000 5,859 (4,141) Interest - - 5,258 5,258 Miscellaneous Revenue - - - -
Total Revenue 168,162 168,162 78,887 (89,275)
Expenditures Current General Government 13,882 13,882 16,004 (2,122) Debt Service Principal 90,000 90,000 - 90,000 Interest and Fiscal Charges 151,513 151,513 132,600 18,913
Total Expenditures 255,395 255,395 148,604 106,791
Net Change in Fund Balance (87,233) (87,233) (69,717) 17,516
Fund Balance, January 1 118,358 118,358 118,358 -
Fund Balance, December 31 $ 31,125 $ 31,125 $ 48,641 $ 17,516
See the accompanying independent auditors' report.
82 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE EXEMPLA GENERAL IMPROVEMENT DISTRICT For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Property Taxes$ 60,891 $ 60,891 $ 62,856 $ 1,965 Specific Ownership Taxes 2,125 2,125 3,982 1,857 Assessment Principal 520,000 520,000 520,000 - Assessment Interest 806,750 806,750 541,242 (265,508) Interest 81,000 81,000 174,477 93,477 Administrative Fee Revenue 15,000 15,000 15,000 - Miscellanous Revenue 6,500 6,500 5,025 (1,475)
Total Revenue 1,492,266 1,492,266 1,322,582 (169,684)
Expenditures Current General Government 32,413 32,413 25,729 6,684 Debt Service Principal 520,000 520,000 520,000 - Interest and Fiscal Charges 806,750 806,750 541,898 264,852
Total Expenditures 1,359,163 1,359,163 1,087,627 271,536
Net Change in Fund Balance 133,103 133,103 234,955 101,852
Fund Balance, January 1 2,465,782 2,465,782 2,465,782 -
Fund Balance, December 31 $ 2,598,885 $ 2,598,885 $ 2,700,737 $ 101,852
See the accompanying independent auditors' report.
83 CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2007
Parks & Recreation Service Acquisition &Conservation Storm Expansion Development Trust Drainage Assets
Cash and Investments$ - $ - $ 202,291 $ 1,032,128 Accrued Interest Receivable - - 1,402 9,585 Accounts Receivable - - - - Restricted Cash and Investments - - - -
Total Assets $ - $ - $ 203,693 $ 1,041,713
Liabilities and Fund Balance
Liabilities Accounts Payable$ - $ - $ 1,329 $ 6,319 Retainage Payable - - - - Deferred Revenue - - - -
Total Liabilities - - 1,329 6,319
Fund Balance Reserved for Capital Projects - - - - Unreserved, Undesignated - - 202,364 1,035,394
Total Fund Balance - - 202,364 1,035,394
Total Liabilities and Fund Balance $ - $ - $ 203,693 $ 1,041,713
Continued
84 Legacy POST Open Space Open Space Total Assets
Cash and Investments$ 427,759 $ 2,033,374 $ 3,695,552 Accrued Interest Receivable 3,036 27,456 41,479 Accounts Receivable - - - Restricted Cash and Investments - 1,000,000 1,000,000
Total Assets $ 430,795 $ 3,060,830 4,737,031
Liabilities and Fund Balance
Liabilities Accounts Payable$ 140 $ - $ 7,788 Retainage Payable - - - Deferred Revenue - - -
Total Liabilities 140 - 7,788
Fund Balance Reserved for Capital Projects - 1,000,000 1,000,000 Unreserved, Undesignated 430,655 2,060,830 3,729,243
Total Fund Balance 430,655 3,060,830 4,729,243
Total Liabilities and Fund Balance $ 430,795 $ 3,060,830 $ 4,737,031
See accompanying independent auditors' report.
85 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECTS FUNDS For the fiscal year ended December 31, 2007
Parks & Recreation Service Acquisitions &Conservation Storm Expansion Development Trust Drainage Revenues Taxes Building Use Tax$ - $ - $ - $ - Vehicle Use Tax - - - - General Sales Tax - - - -
Total Taxes - - - -
Licenses and Permits 34,479 67,892 - 10,000 Intergovernmental - State Grants - - 243,411 - Interest 3,742 4,890 10,720 66,195 Contributions and Misc Grants - - - -
Total Revenues 38,221 72,782 254,131 76,195
Expenditures Current General Government - - - - Public Works - - 27,892 Cultural & Recreation 5,547 6,835 4,619 - Capital Outlay 47,109 152,403 375,196 30,398 Total Expenditures 52,656 159,238 379,815 58,290
Excess (Deficiency) of Revenues over Expenditures (14,435) (86,456) (125,684) 17,905
Other Financing Sources (Uses) Transfers (Out) (120,780) (220,106) - - Total Other Financing Sources (Uses) (120,780) (220,106) - -
Net Changes in Fund Balance (135,215) (306,562) (125,684) 17,905
Fund Balance, January 1 135,215 306,562 328,048 1,017,487
Fund Balance, December 31 $ - $ - $ 202,364 $ 1,035,392
Continued
86 Legacy POST Open Space Open Space Total Revenues Taxes Building Use Tax$ 43,315 $ 43,315 $ 86,630 Vehicle Use Tax 102,327 102,327 204,654 General Sales Tax 584,895 584,895 1,169,790
Total Taxes 730,537 730,537 1,461,074
Licenses and Permits - - 112,371 Intergovernmental - State Grants - - 243,411 Interest 34,806 156,769 277,122 Contributions and Misc Grants 2,000 1,009,655 1,011,655
Total Revenues 767,343 1,896,961 3,105,633
Expenditures Current General Government 5,116 5,116 10,232 Public Works - - 27,892 Cultural & Recreation - 417 17,418 Capital Outlay 1,053,656 298,648 1,957,410 Total Expenditures 1,058,772 304,181 2,012,952
Excess (Deficiency) of Revenues over Expenditures (291,429) 1,592,780 1,092,681
Other Financing Sources (Uses) Transfers (Out) - (195,572) (536,458) Total Other Financing Sources (Uses) - (195,572) (536,458)
Net Changes in Fund Balance (291,429) 1,397,208 556,223
Fund Balance, January 1 722,085 1,663,623 4,173,020
Fund Balance, December 31 $ 430,656 $ 3,060,831 $ 4,729,243
See accompanying independent auditors' report.
87 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE SERVICE EXPANSION CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Licenses and Permits$ 72,000 $ 35,581 $ 34,479 $ (1,102) Interest 1,000 3,742 3,742 -
Total Revenues 73,000 39,323 38,221 (1,102)
Expenditures Current Public Works - - - - Cultural and Recreation 23,400 5,548 5,547 1 Capital Outlay 60,000 47,109 47,109 -
Total Expenditures 83,400 52,657 52,656 1
Excess (Deficiency) of Revenues over Expenditures (10,400) (13,334) (14,435) (1,101)
Other Financing Sources (Uses) Transfers Out (28,188) (121,881) (120,780) 1,101
Total Other Financing Sources (Uses) (28,188) (121,881) (120,780) 1,101
Net Change in Fund Balance (38,588) (135,215) (135,215) -
Fund Balance, January 1 135,215 135,215 135,215 -
Fund Balance, December 31 $ 96,627 $ - $ - $ -
See the accompanying independent auditors' report.
88 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE PARKS & REC ACQUISITION & DEVELOPMENT CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Licenses and Permits$ 120,000 $ 67,892 $ 67,892 $ - Interest 5,000 9,908 4,890 (5,018)
Total Revenues 125,000 77,800 72,782 (5,018)
Expenditures Current Cultural & Recreation - 6,835 6,835 - Capital Outlay 47,974 154,976 152,403 2,573 Capital Budget Carryover 179,023 - - -
Total Expenditures 226,997 161,811 159,238 2,573
Excess (Deficiency) of Revenues over Expenditures (101,997) (84,011) (86,456) (2,445)
Other Financing Sources (Uses) Transfers Out - (222,551) (220,106) 2,445
Total Other Financing Sources (Uses) - (222,551) (220,106) 2,445
Net Change in Fund Balance (101,997) (306,562) (306,562) -
Fund Balance, January 1 306,562 306,562 306,562 -
Fund Balance, December 31 $ 204,565 $ - $ - $ -
See the accompanying independent auditors' report.
89 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE CONSERVATION TRUST CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Intergovernmental - State Grants$ 211,000 $ 211,000 $ 243,411 $ 32,411 Interest 12,500 12,500 10,720 (1,780)
Total Revenues 223,500 223,500 254,131 30,631
Expenditures Current Cultural and Recreation - - 4,619 (4,619) Capital Outlay 519,368 527,992 375,196 152,796 Capital Budget Carryover 18,467 18,467 - 18,467
Total Expenditures 537,835 546,459 379,815 166,644
Excess (Deficiency) of Revenues over Expenditures (314,335) (322,959) (125,684) 197,275
Net Change in Fund Balance (314,335) (322,959) (125,684) 197,275
Fund Balance, January 1 328,048 328,048 328,048 -
Fund Balance, December 31 $ 13,713 $ 5,089 $ 202,364 $ 197,275
See the accompanying independent auditors' report.
90 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE STORM DRAINAGE CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Licenses and Permits$ 88,000 $ 88,000 $ 10,000 $ (78,000) Interest 5,000 5,000 66,195 61,195
Total Revenues 93,000 93,000 76,195 (16,805)
Expenditures Current Public Works 80,000 80,000 27,892 52,108 Capital Outlay - 722,000 30,398 691,602
Total Expenditures 80,000 802,000 58,290 743,710
Excess (Deficiency) of Revenues over Expenditures 13,000 (709,000) 17,905 726,905
Net Change in Fund Balance 13,000 (709,000) 17,905 726,905
Fund Balance, January 1 1,017,487 1,017,487 1,017,487 -
Fund Balance, December 31 $ 1,030,487 $ 308,487 $ 1,035,392 $ 726,905
See the accompanying independent auditors' report.
91 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LEGACY OPEN SPACE CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax$ - $ - $ 43,315 $ 43,315 Vehicle Use Tax - - 102,327 102,327 General Sales & Use Tax 679,743 679,743 584,895 (94,848) Total Taxes 679,743 679,743 730,537 50,794
Interest 20,000 20,000 34,806 14,806 Contributions and Misc Grants - - 2,000 2,000
Total Revenues 699,743 699,743 767,343 67,600
Expenditures Current General Government 4,000 4,000 5,116 (1,116) Culture & Recreation - - - - Capital Outlay 248,858 1,175,848 1,053,656 122,192
Total Expenditures 252,858 1,179,848 1,058,772 121,076
Net Change in Fund Balance 446,885 (480,105) (291,429) 188,676
Fund Balance, January 1 722,085 722,085 722,085 -
Fund Balance, December 31 $ 1,168,970 $ 241,980 $ 430,656 $ 188,676
See the accompanying independent auditors' report.
92 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE POST OPEN SPACE AND PARK DEVELOPMENT CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax$ - $ - $ 43,315 $ 43,315 Vehicle Use Tax - - 102,327 102,327 General Sales & Use Tax 679,743 679,743 584,895 (94,848) Total Taxes 679,743 679,743 730,537 50,794
Interest 62,500 62,500 156,769 94,269 Contributions and Misc Grants - - 1,009,655 1,009,655
Total Revenues 742,243 742,243 1,896,961 1,154,718
Expenditures Current General Government 12,000 12,000 5,116 6,884 Cultural & Recreation - - 417 (417) Capital Outlay 335,538 335,538 298,648 36,890
Total Expenditures 347,538 347,538 304,181 43,357
Excess (Deficiency) of Revenues over Expenditures 394,705 394,705 1,592,780 1,198,075
Other Financing Sources (Uses) Transfers Out (310,841) (310,841) (195,572) 115,269
Total Other Financing Sources (Uses) (310,841) (310,841) (195,572) 115,269
Net Change in Fund Balance 83,864 83,864 1,397,208 1,313,344
Fund Balance, January 1 1,663,623 1,663,623 1,663,623 -
Fund Balance, December 31 $ 1,747,487 $ 1,747,487 $ 3,060,831 $ 1,313,344
See the accompanying independent auditors' report.
93 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax$ 188,996 $ 245,281 $ 245,281 $ - Interest 35,000 56,350 62,297 5,947 Sidewalk Maintenance/Repair 82,032 58,655 58,681 26 Assessment - Principal 10,901 203,312 198,313 (4,999) Assessment - Interest 40,523 213 5,924 5,711 Contributions and Misc Grants - - 556,308 556,308 Miscellaneous Revenue - 495 3,860 3,365 Total Revenues 357,452 564,306 1,130,664 566,358
Expenditures Current General Government - - - - Public Safety - - 1,250 (1,250) Public Works - 1,342 3,442 (2,100) Capital Outlay 2,432,032 960,833 2,904,067 (1,943,234) Capital Budget Carryover - 2,323,196 - 2,323,196
Total Expenditures 2,432,032 3,285,371 2,908,759 376,612
Excess (Deficiency) of Revenues over Expenditures (2,074,580) (2,721,065) (1,778,095) 942,970
Other Financing Sources (Uses) Transfers In - 500,000 500,000 - Transfers Out (79,889) (2,014,253) (1,893,156) 121,097
Total Other Financing Sources (Uses) (79,889) (1,514,253) (1,393,156) 121,097
Net Change in Fund Balance (2,154,469) (4,235,318) (3,171,251) 1,064,067
Fund Balance, January 1 3,278,549 3,278,549 3,278,549 -
Fund Balance, December 31 $ 1,124,080 $ (956,769) $ 107,298 $ 1,064,067
See the accompanying independent auditors' report.
94 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE DEBT SERVICE FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Property Tax$ 1,121,850 $ 1,121,850 $ 1,127,605 $ 5,755 Building Use Tax - - 15,023 15,023 Vehicle Use Tax - - 102,312 102,312 General Sales & Use Tax 799,878 799,878 541,543 (258,335) Interest 5,000 5,000 40,847 35,847
Total Revenues 1,926,728 1,926,728 1,827,330 (99,398)
Expenditures Current General Government 19,210 19,210 21,013 (1,803) Debt Service Capital Lease Payments 304,479 304,479 172,735 131,744 Principal 1,440,000 1,440,000 1,440,000 - Interest and Fiscal Charges 467,518 467,518 467,518 -
Total Expenditures 2,231,207 2,231,207 2,101,266 129,941
Excess (Deficiency) of Revenue over Expenditures (304,479) (304,479) (273,936) 30,543
Other Financing Sources (Uses) Transfers In 304,479 304,479 590,628 286,149
Total Other Financing Sources (Uses) 304,479 304,479 590,628 286,149
Net Changes in Fund Balance - - 316,692 316,692
Fund Balance, January 1 38,342 38,342 38,342 -
Fund Balance, December 31 $ 38,342 $ 38,342 $ 355,034 $ 316,692
See the accompanying independent auditors' report.
95 CITY OF LAFAYETTE, COLORADO INTERNAL SERVICE FUNDS December 31, 2007
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursement basis. The City’s Internal Service Funds account for the following services:
Employee Benefit Fund
To account for the allocation of costs associated with employee insurance plans.
Insurance Fund
To account for the allocation of costs associated with the City’s insurance plans.
96 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2007
Employee Benefit Insurance Fund Fund Total Assets Current Assets Cash and Investments$ 671,547 $ 584,806 $ 1,256,353 Accounts receivable 329 - 329 Accrued Interest Receivable 5,987 5,144 11,131 Prepaid Expense 84,601 - 84,601
Total Current Assets 762,464 589,950 1,352,414
Liabilities Current Liabilities Accounts Payable 3,108 30,717 33,825 Claims Payable 3,985 - 3,985 Compensated Absences Due in One Year 427,865 - 427,865
Total Current Liabilities 434,958 30,717 465,675
Net Assets - Unrestricted $ 327,506 $ 559,233 $ 886,739
See the accompanying independent auditors' report.
97 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the fiscal year ended December 31, 2007
Employee Benefit Insurance Fund Fund Total Operating Revenues City Contributions$ 1,505,491 $ 547,098 $ 2,052,589 Employee Contributions 48,578 - 48,578 Miscellaneous 6,502 55,393 61,895
Total Operating Revenue 1,560,571 602,491 2,163,062
Operating Expenses Premiums and Claims Paid 1,547,051 590,257 2,137,308 Wellness Program - 3,242 3,242 Miscellaneous 56,869 - 56,869
Total Operating Expenses 1,603,920 593,499 2,197,419
Operating Income (Loss) (43,349) 8,992 (34,357)
Nonoperating Interest Revenue 44,963 34,329 79,292
Change in Net Assets 1,614 43,321 44,935
Total Net Assets, January 1 325,892 515,912 841,804
Total Net Assets, December 31 $ 327,506 $ 559,233 $ 886,739
See the accompanying independent auditors' report.
98 CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the fiscal year ended December 31, 2007
Employee Benefit Insurance Fund Fund Total Cash Flows From Operating Activities Receipts from General and Proprietary Funds$ 1,505,491 $ 547,098 $ 2,052,589 Receipts from Employees 48,578 - 48,578 Miscellaneous Receipts - COBRA and Other 6,502 55,393 61,895 Payments to Insurance Companies (1,559,758) (589,264) (2,149,022) Payments for Wellness Program - (3,242) (3,242) Payments to Employees (56,869) - (56,869)
Net Cash (Used) Provided by Operating Activities (56,056) 9,985 (46,071)
Cash flows From Investing Activities Interest Received 42,320 32,721 75,041
Net Cash Provided By Investing Activities 42,320 32,721 75,041
Net Increase (Decrease) in Cash and Investments (13,736) 42,706 28,970
Cash and Investments - January 1 685,283 542,100 1,227,383
Cash and Investments - December 31 $ 671,547 $ 584,806 $ 1,256,353
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income(Loss) $ (43,349) $ 8,992 $ (34,357)
Adjustments to Reconcile Income (Loss) From Operations to Net Cash Provided (Used) by Operating Activities (Increase) Decrease in Accounts Receivable (329) - (329) (Increase) Decrease in Prepaid Expense (11,762) - (11,762) Increase (Decrease) in Accounts Payable (6,828) 993 (5,835) Increase in Compensated Absences 6,212 - 6,212
Total Adjustments (12,707) 993 (11,714)
Net Cash Provided (Used) by Operating Activities $ (56,056) $ 9,985 $ (46,071)
See the accompanying independent auditors' report.
99 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFIT FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues City Contributions$ 1,664,337 $ 1,664,337 $ 1,505,491 $ (158,846) Employee contributions 28,342 28,342 48,578 20,236 Interest Income 25,000 25,000 44,963 19,963 Miscellaneous Income 1,000 1,000 6,502 5,502
Total Revenues 1,718,679 1,718,679 1,605,534 (113,145)
Expenditures Premiums Paid 1,662,927 1,662,927 1,547,051 115,876 Wellness Program 20,434 20,434 - 20,434 Miscellaneous 25,318 25,318 56,869 (31,551)
Total Expenditures 1,708,679 1,708,679 1,603,920 104,759
Excess (Deficiency) of Revenue over Expenditures 10,000 10,000 1,614 (8,386)
Total Net Assets, January 1 325,892 325,892 325,892 -
Total Net Assets, December 31 $ 335,892 $ 335,892 $ 327,506 $ (8,386)
See the accompanying independent auditors' report.
100 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE INSURANCE FUND For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues City Contributions$ 511,306 $ 511,306 $ 547,098 $ 35,792 Interest Income 25,000 25,000 34,329 9,329 Miscellaneous Income 26,000 26,000 55,393 29,393
Total Revenues 562,306 562,306 636,820 74,514
Expenditures Premiums Paid 631,306 631,306 590,257 41,049 Wellness Program 6,000 6,000 3,242 2,758 Operating Transfer to Other Funds - 5,000 - 5,000
Total Expenditures 637,306 642,306 593,499 48,807
Excess (Deficiency) of Revenue over Expenditures (75,000) (80,000) 43,321 123,321
Total Net Assets, January 1 515,912 515,912 515,912 -
Total Net Assets, December 31 $ 440,912 $ 435,912 $ 559,233 $ 123,321
See the accompanying independent auditors' report.
101 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) WATER UTILITY For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Metered Water Sales$ 4,510,358 $ 4,510,358 $ 5,334,662 $ 824,304 Interest Revenue 968,252 968,252 1,627,896 659,644 Other 112,000 112,000 150,612 38,612 Payment in Lieu of Water 440,000 440,000 440,698 698 Tap Fees 1,100,000 1,100,000 1,189,964 89,964
Total Revenues 7,130,610 7,130,610 8,743,832 1,613,222
Expenditures Administration 380,439 381,477 334,416 47,061 Source of Water Supply 459,838 461,185 259,475 201,710 Water Treatment 1,539,975 1,546,385 1,447,354 99,031 Water Transmission and Distribution 989,246 1,016,579 565,665 450,914 Construction and Capital Improvements 3,336,000 3,336,000 1,763,684 1,572,316 Debt Service Principal Retirement 605,000 605,000 615,604 (10,604) Interest Expense 911,286 911,286 919,694 (8,408) Annual Bond Fee 1,900 1,900 750 1,150 Amortization 44,204 44,204 44,204 - Operating Transfers to Other Funds 570,449 570,449 611,094 (40,645)
Total Expenditures 8,838,337 8,874,465 6,561,940 2,312,525
Excess (Deficiency) of Revenue over Expenditures $ (1,707,727) $ (1,743,855) 2,181,892 $ 3,925,747
Total Net Assets, January 1 69,725,967
Total Net Assets, December 31 71,907,859
GAAP Adjustments Developer Dedications 3,584,827 Depreciation (1,567,338) Principal Retirement 615,604 Construction and Capital Improvements 1,763,684
Adjusted Total Net Assets, December 31 $ 76,304,636
See the accompanying independent auditors' report.
102 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) WATER RECLAMATION For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Waste Water Collection Fees$ 1,630,401 $ 1,630,401 $ 1,553,806 $ (76,595) Interest Revenue 275,161 275,161 384,348 109,187 Other 4,200 4,200 - (4,200) Tap Fees 690,000 690,000 688,404 (1,596) Assessment - Interest - - 1,213 1,213
Total Revenues 2,599,762 2,599,762 2,627,771 28,009
Expenditures Administration 188,100 188,843 218,402 (29,559) Waste Water Treatment 957,736 961,869 834,850 127,019 Waste Water Collection 563,747 590,750 427,484 163,266 Construction and Capital Improvements 600,000 600,000 474,438 125,562 Debt Service Principal Retirement 374,109 374,109 374,109 - Interest Expense 279,412 279,412 258,837 20,575 Bond Fee 1,400 1,400 - 1,400 Amortization 1,166 1,166 3,255 (2,089) Operating Transfers to Other Funds 207,981 207,981 177,662 30,319
Total Expenditures 3,173,651 3,205,530 2,769,037 436,493
Excess (Deficiency) of Revenue over Expenditures $ (573,889) $ (605,768) (141,266) $ 464,502
Total Net Assets, January 1 20,893,770
Total Net Assets, December 31 20,752,504
GAAP Adjustments Developer Dedications 2,162,005 Depreciation (868,357) Principal Retirement 374,109 Construction and Capital Improvements 474,438
Adjusted Total Net Assets, December 31 $ 22,894,699
See the accompanying independent auditors' report.
103 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) GOLF COURSE For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Golf Sales and Services$ 2,360,500 $ 2,360,500 $ 2,415,423 $ 54,923 Interest Revenue 6,500 6,500 38,664 32,164 Other 15,000 15,000 16,766 1,766
Total Revenues 2,382,000 2,382,000 2,470,853 88,853
Expenditures Administration 140,019 140,371 170,250 (29,879) Golf Maintenance Operations 809,902 884,657 670,342 214,315 Golf Club House Operations 542,667 546,528 543,655 2,873 Golf Food Service Operations 216,809 217,682 239,211 (21,529) Construction and Capital Improvements - - 147,630 (147,630) Debt Service Principal 43,200 43,200 43,200 - Interest Expense 23,111 23,111 23,111 - Lease Payments 51,690 51,690 51,690 - Bond Fees - - 1,000 (1,000) Operating Transfers to Other Funds 579,499 579,499 587,990 (8,491)
Total Expenditures 2,406,897 2,486,738 2,478,079 8,659
Excess (Deficiency) of Revenue over Expenditures $ (24,897) $ (104,738) (7,226) $ 97,512
Total Net Assets, January 1 1,030,586
Total Net Assets, December 31 1,023,360
GAAP Adjustments Depreciation (140,608) Principal Retirement 87,664 Construction and Capital Improvements 147,630
Adjusted Total Net Assets, December 31 $ 1,118,046
See the accompanying independent auditors' report.
104 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) STORM WATER For the Fiscal Year Ended December 31, 2007
Variance Original Final Favorable Budget Budget Actual (Unfavorable)
Revenues Storm Water Collection Fees$ - $ 39,000 $ 338,018 $ 299,018 Interest Revenue - - 18,873 18,873 Storm Water Development Fees - - 225,274 225,274
Total Revenues - 39,000 582,165 543,165
Expenditures Administration - 1,000 321 679 Storm Water Collection - - - - Construction and Capital Improvements - - - - Operating Transfers to Other Funds - 38,000 38,679 (679)
Total Expenditures - 39,000 39,000 -
Excess (Deficiency) of Revenue over Expenditures $ - $ - 543,165 $ 543,165
Total Net Assets, January 1 -
Total Net Assets, December 31 543,165
GAAP Adjustments Depreciation - Principal Retirement - Construction and Capital Improvements -
Adjusted Total Net Assets, December 31 $ 543,165
See the accompanying independent auditors' report.
105 THIS PAGE INTENTIONALLY LEFT BLANK
106 STATISTICAL SECTION
For the year ended December 31, 2007, the Statistical Tables Section provides trends, statistical and demographic information, and continuing disclosure information.
2007
City of Lafayette, Colorado Comprehensive Annual Financial Report Index for the Statistical Section For the Fiscal Year Ended December 31, 2007
FINANCIAL TRENDS These schedules show the changes in the city’s financial position over time...... 108
REVENUE CAPACITY Schedules that assist in the assessment of the city’s local revenue sources...... 117
DEBT CAPACITY These schedules aid in the analysis of the city’s current level of debt, and it’s ability to issue debt in the future...... 120
DEMOGRAPHIC AND ECONOMIC INFORMATION Schedules containing indicators that depict the environment in which the city’s financial activities take place...... 126
OPERATING INFORMATION Service and infrastructure data to help relate the financial information to the services and activities provided by the city...... 127
107 CITY OF LAFAYETTE, COLORADO NET ASSETS, LAST SEVEN YEARS SCHEDULE 1 For the Fiscal Year Ended December 31, 2007
2001 2002 2003 2004
Governmental Activities Invested in capital assets, net of related debt$ - $ 11,299,168 $ 14,374,939 $ 22,570,911 Restricted - 3,547,614 10,033,284 10,776,990 Unrestricted 792,155 18,659,528 15,398,318 12,482,944 Total governmental activities net assets$ 792,155 $ 33,506,310 $ 39,806,541 $ 45,830,845
Business-type Activities Invested in capital assets, net of related debt$ 46,434,767 $ 52,484,343 $ 49,370,593 $ 57,862,898 Restricted 6,457,664 2,551,168 9,493,472 - Unrestricted 16,004,256 15,499,527 11,666,525 17,516,627 Total business-type activities net assets$ 68,896,687 $ 70,535,038 $ 70,530,590 $ 75,379,525
Invested in capital assets, net of related debt$ 46,434,767 $ 63,783,511 $ 63,745,532 $ 80,433,809 Restricted 6,457,664 6,098,782 19,526,756 10,776,990 Unrestricted 16,796,411 34,159,055 27,064,843 29,999,571 Total primary governmental net assets$ 69,688,842 $ 104,041,348 $ 110,337,131 $ 121,210,370
Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 Source: Current and prior years' financial statements
108 2005 2006 2007
Governmental Activities Invested in capital assets, net of related debt$ 30,764,183 $ 33,229,175 $ 94,030,382 Restricted 6,720,920 8,449,975 9,669,215 Unrestricted 12,048,717 13,686,208 15,989,734 Total governmental activities net assets$ 49,533,820 $ 55,365,358 $ 119,689,331
Business-type Activities Invested in capital assets, net of related debt$ 60,662,135 $ 61,257,444 $ 75,356,639 Restricted - - - Unrestricted 19,009,607 21,681,488 25,503,907 Total business-type activities net assets$ 79,671,742 $ 82,938,932 $ 100,860,546
Invested in capital assets, net of related debt$ 91,426,318 $ 94,486,619 $ 169,387,021 Restricted 6,720,920 8,449,975 9,669,215 Unrestricted 31,058,324 35,367,696 41,493,641 Total primary governmental net assets$ 129,205,562 $ 138,304,290 $ 220,549,877
109 CITY OF LAFAYETTE, COLORADO CHANGES IN NET ASSETS, LAST SEVEN YEARS SCHEDULE 2 For the Fiscal Year Ended December 31, 2007
2001 2002 2003 2004 Expenses Governmental Activities: General Government$ 4,115,737 $ 3,551,255 $ 3,943,450 $ 4,090,732 Judicial 338,231 351,190 298,156 279,656 Public Safety 4,028,317 4,447,521 4,544,974 5,092,445 Public Works 1,368,523 1,435,266 1,570,915 1,526,742 Culture and Recreation 2,932,467 4,276,140 4,509,569 4,601,780 Interest on Long-Term Debt 1,208,790 1,191,417 1,262,835 1,214,491 Adjustment of Asset Held for Resale - - 72,182 268,032 Total governmental activities expenses$ 13,992,065 $ 15,252,789 $ 16,202,081 $ 17,073,878
Business-type Activities: Water$ 2,862,587 $ 3,475,347 $ 4,108,398 $ 4,512,239 Water Reclamation 1,247,345 1,315,171 1,742,104 2,178,177 Golf Course 1,732,443 1,721,011 1,782,439 1,523,687 Storm Water - - - - Total business-type activities expenses 5,842,375 6,511,529 7,632,941 8,214,103 Total primary governmental expenses$ 19,834,440 $ 21,764,318 $ 23,835,022 $ 25,287,981
Program Revenues Governmental activities: Program Revenues Charges for Services General Government$ 1,010,477 $ 1,822,817 $ 1,541,682 $ 1,051,805 Judicial 160,335 248,467 388,147 438,660 Public Safety 16,310 10,555 33,520 29,908 Public Works 117,000 117,000 265,904 302,098 Culture and Recreation 1,216,941 1,172,749 1,234,250 1,312,464 Total Charges for Services 2,521,063 3,371,588 3,463,503 3,134,935 Operating grants and contributions 922,497 949,277 1,158,588 984,653 Capital grants and contributions 1,453,120 2,015,516 2,456,336 4,784,311 Total governmental activities program revenues$ 7,417,743 $ 9,707,969 $ 10,541,930 $ 12,038,834
Business-type Activities: Program Revenues Charges for Services Water$ 3,823,050 $ 2,779,487 $ 3,755,408 $ 3,793,791 Water Reclamation 1,219,227 1,326,667 1,386,525 1,518,004 Storm Water - - - - Golf Course 2,227,210 2,183,541 2,082,080 1,979,585 Total Charges for Services 7,269,487 6,289,695 7,224,013 7,291,380 Operating grants and contributions 12,150 - - - Capital grants and contributions 6,091,211 2,328,562 2,272,411 6,636,596 Total business-type activities program revenues 20,642,335 14,907,952 16,720,437 21,219,356 Total primary government program revenues$ 28,060,078 $ 24,615,921 $ 27,262,367 $ 33,258,190
110 2005 2006 2007 Expenses Governmental Activities: General Government$ 4,137,230 $ 4,502,008 $ 4,590,325 Judicial 299,968 302,712 310,187 Public Safety 5,589,417 5,985,716 6,913,573 Public Works 1,730,313 2,035,038 3,633,406 Culture and Recreation 4,915,325 4,895,446 5,295,757 Interest on Long-Term Debt 1,304,370 1,530,509 1,492,229 Adjustment of Asset Held for Resale - - - Total governmental activities expenses$ 17,976,623 $ 19,251,429 $ 22,235,477
Business-type Activities: Water$ 4,509,549 $ 5,026,708 $ 5,138,896 Water Reclamation 2,248,884 2,481,055 2,611,185 Golf Course 1,644,464 1,625,813 1,795,403 Storm Water - - 321 Total business-type activities expenses 8,402,897 9,133,576 9,545,805 Total primary governmental expenses$ 26,379,520 $ 28,385,005 $ 31,781,282
Program Revenues Governmental activities: Program Revenues Charges for Services General Government$ 1,149,601 $ 724,774 $ 962,093 Judicial 447,101 717,508 851,855 Public Safety 47,381 44,101 298,106 Public Works 281,256 309,304 180,322 Culture and Recreation 1,411,720 1,664,673 1,637,956 Total Charges for Services 3,337,059 3,460,360 3,930,332 Operating grants and contributions 913,437 965,959 1,209,991 Capital grants and contributions 2,253,872 3,147,419 6,869,830 Total governmental activities program revenues$ 9,841,427 $ 11,034,098 $ 15,940,485
Business-type Activities: Program Revenues Charges for Services Water$ 4,923,757 $ 5,943,428 $ 5,485,274 Water Reclamation 1,524,581 1,543,980 1,553,806 Storm Water - - 563,292 Golf Course 2,206,578 2,337,037 2,432,189 Total Charges for Services 8,654,916 9,834,643 10,034,561 Capital grants and contributions 5,048,166 2,613,794 8,065,898 Total business-type activities program revenues 22,357,998 22,272,882 28,135,020 Total primary government program revenues$ 32,199,425 $ 33,306,980 $ 44,075,505
111 CITY OF LAFAYETTE, COLORADO CHANGES IN NET ASSETS, LAST SEVEN YEARS SCHEDULE 2 (CONTINUED) For the Fiscal Year Ended December 31, 2007
2001 2002 2003 2004
Net (Expense)/Revenue Governmental activities$ (6,574,322) $ (5,544,820) $ (5,660,151) $ (5,035,044) Business-type activities 14,799,960 8,396,423 9,087,496 13,005,253 Total primary government net expenses$ 8,225,638 $ 2,851,603 $ 3,427,345 $ 7,970,209
General Revenues and Changes in Net Assets Governmental activities: Taxes Property taxes$ 2,431,160 $ 3,034,093 $ 3,466,370 $ 3,637,650 Sales and use taxes 7,728,825 7,813,578 7,892,329 8,304,870 Other taxes - - 32,319 40,760 Unrestricted grants and contributions - - - - Interest 1,247,609 696,317 295,299 255,735 Franchise Taxes - - 630,347.00 708,253.00 Other general revenues 594,385 594,418 (72,182) (1) (268,032) (1) Gain (Loss) on sale of capital assets - - 498,819 7,245 Transfers 1,921,849 1,204,194 2,608,402 1,239,670 Special Item - Gain on Fire Conversion - - - - Total governmental activities 13,923,828 13,342,600 15,351,703 13,926,151
Business-type activities: Interest$ 1,243,534 $ 735,817 $ 378,439 $ 366,292 Gain (Loss) on sale of capital assets - - - 8,440 Transfers (1,921,849) (1,204,194) (2,608,402) (1,239,670) Other general revenues 49,470 - - - Total business-type activities (628,845) (468,377) (2,229,963) (864,938) Total primary government$ 13,294,983 $ 12,874,223 $ 13,121,740 $ 13,061,213
Changes in Net Assets Governmental activities$ 7,349,506 $ 7,797,780 $ 9,691,552 $ 8,891,107 Business-type activities 14,171,115 7,928,046 6,857,533 12,140,315 Total primary government net assets $ 21,520,621 $ 15,725,826 $ 16,549,085 $ 21,031,422
(1) Adjustment of asset held for resale Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 Source: Current and prior years' financial statements
112 2005 2006 2007
Net (Expense)/Revenue Governmental activities (8,135,196) (8,217,331) (6,294,992) Business-type activities 13,955,101 13,139,306 18,589,215 Total primary government net expenses$ 5,819,905 $ 4,921,975 $ 12,294,223
General Revenues and Changes in Net Assets Governmental activities: Taxes Property taxes 3,734,122 4,636,466 4,517,103 Sales and use taxes 8,578,845 9,411,455 10,080,824 Other taxes 33,322 40,940 34,806 Unrestricted grants and contributions - - - Interest 563,709 1,043,848 1,299,871 Franchise Taxes 813,636.00 863,349.00 868,106.00 Other general revenues - - - Gain (Loss) on sale of capital assets 15,480 47,733 7,180 Transfers 1,436,116 1,465,438 1,415,425 Special Item - Gain on Fire Conversion - - 199,677 Total governmental activities 15,175,230 17,509,229 18,422,992
Business-type activities: Interest$ 728,013 $ 1,417,902 $ 2,070,994 Gain (Loss) on sale of capital assets - - - Transfers (1,436,116) (1,465,438) (1,415,425) Other general revenues - - - Total business-type activities (708,103) (47,536) 655,569 Total primary government$ 14,467,127 $ 17,461,693 $ 19,078,561
Changes in Net Assets Governmental activities$ 7,040,034 $ 9,291,898 $ 12,128,000 Business-type activities 13,246,998 13,091,770 19,244,784 Total primary government net assets $ 20,287,032 $ 22,383,668 $ 31,372,784
113 CITY OF LAFAYETTE, COLORADO FUND BALANCES, GOVERNMENTAL FUNDS, LAST SEVEN YEARS SCHEDULE 3 For the Fiscal Year Ended December 31, 2007
2001 2002 2003 2004 2005 2006 2007
General Fund Reserved$ 12,048 $ 966,172 $ 2,306,175 $ 3,698,609 $ 3,676,917 $ 3,861,134 $ 4,903,315 Unreserved 11,192,912 9,747,503 9,138,312 4,966,419 4,320,066 4,956,337 6,418,992 Total general fund$ 11,204,960 $ 10,713,675 $ 11,444,487 $ 8,665,028 $ 7,996,983 $ 8,817,471 $ 11,322,307
All other Governmental Funds Reserved$ 11,335,232 $ 20,264,238 $ 5,124,545 $ 4,209,126 $ 8,160,580 $ 5,416,688 $ 3,749,378 Unreserved, reported in: Special revenue funds 102,490 192,888 277,783 601,577 748,504 943,701 982,056 Capital project funds - 4,859,425 6,466,668 6,817,919 3,689,182 4,619,021 3,836,539 Debt service fund - - - - 3,751 38,342 355,034 Total other governmental funds$ 11,437,722 $ 25,316,551 $ 11,868,996 $ 11,628,622 $ 12,602,017 $ 11,017,752 $ 8,923,007
Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 Source: Current and prior years' financial statements
114 CITY OF LAFAYETTE, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST SEVEN YEARS SCHEDULE 4 For the Fiscal Year Ended December 31, 2007
2001 2002 2003 2004 2005 2006 2007 Revenues Taxes$ 10,159,985 $ 10,847,671 $ 11,358,699 $ 11,947,820 $ 12,318,267 $ 14,053,221 $ 14,603,227 Licenses and Permits 786,006 1,031,737 911,379 913,460 780,630 1,015,589 421,730 Intergovernmental 1,167,262 1,190,177 1,326,863 1,600,202 1,096,289 1,275,115 1,547,140 Urban Drainage District - - 200,809 - - - - Fines and Forfeitures 160,335 283,692 420,456 465,286 478,208 752,055 851,855 Franchise Taxes 560,884 559,043 630,347 708,253 813,636 863,349 868,106 Interest 1,206,695 634,104 320,793 246,267 517,356 971,545 1,143,086 Sidewalk Maintenance/Repair - 80,424 95,597 82,259 84,496 86,799 58,681 Contributions 1,000,100 65,779 74,842 69,660 153,190 40,318 1,884,478 Charges for Services 1,478,627 1,956,809 1,759,327 1,539,653 1,645,548 1,716,339 2,255,825 Special Assessments Principal 74,303 81,717 488,453 239,353 8,735 635,569 736,983 Special Assessments Interest - 70,163 1,363,755 1,004,650 62,273 827,804 548,322 Administrative Fees - - 22,615 88,374 95,969 62,683 62,683 Miscellaneous 263,548 99,350 593,552 172,101 105,821 292,658 82,034 Total revenues 16,857,745 16,900,666 19,567,487 19,077,338 18,160,418 22,593,044 25,064,150
Expenditures General Government 3,717,684 3,425,548 3,706,811 6,191,131 3,797,408 4,201,131 4,415,363 Judicial 338,231 351,441 297,246 279,630 299,383 301,862 310,518 Public Safety 3,711,685 4,015,889 4,142,895 4,637,191 5,215,916 5,587,442 6,332,944 Public Works 1,224,329 1,223,634 1,380,334 1,241,332 1,318,180 1,437,309 1,755,484 Culture and Recreation 2,484,745 3,688,467 3,923,821 4,056,279 4,282,927 4,197,522 4,367,085 Capital Outlay 7,601,060 4,795,190 6,579,285 4,391,912 7,096,025 5,596,574 6,542,656 Debt Service Capital Lease Payments - 255,400 254,506 256,721 244,445 94,914 172,735 Principal 906,931 963,287 19,294,637 1,215,978 1,765,000 1,955,000 2,025,000 Interest and Fiscal Charges 1,162,547 998,916 1,465,817 1,095,552 1,173,982 1,429,713 1,390,828 Bond Issuance Costs 198,802 244,544 183,488 - 108,799 20,792 - Total expenditures 21,346,014 19,962,316 41,228,840 23,365,726 25,302,065 24,822,259 27,312,613
Excess of Revenues Over (Under) Expenditures (4,488,269) (3,061,650) (21,661,353) (4,288,388) (7,141,647) (2,229,215) (2,248,463)
115 CITY OF LAFAYETTE, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST SEVEN YEARS SCHEDULE 4 (CONTINUED) For the Fiscal Year Ended December 31, 2007
2001 2002 2003 2004 2005 2006 2007
Other Financing Sources (Uses)
Proceeds From Debt 5,950,000 15,245,000 - - - - 1,243,179 Proceeds Bonds Proceeds/Premium - - 6,408,390 - 6,010,881 2,040,000 - Retirement of Bonds Refunded - - - - - (2,040,000) - Lease Issuance 357,208 - - 56,622 - - - Transfers In 2,016,302 3,886,251 15,657,178 4,918,211 1,891,595 1,996,337 4,437,885 Transfers Out (94,453) (2,682,057) (13,048,776) (3,438,246) (455,479) (530,899) (3,022,460) Total other financing sources (uses) 8,229,057 16,449,194 9,016,792 1,536,587 7,446,997 1,465,438 2,658,604
Adjustment of Asset Held for Resale - - (72,182) (268,032) - - -
Net change in fund balances$ 3,740,788 $ 13,387,544 $ (12,716,743) $ (3,019,833) $ 305,350 $ (763,777) $ 410,141
Debt service as a percentage of noncapital expenditures 15.1% 14.6% 60.7% 13.5% 17.5% 18.1% 17.3%
Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 Source: Current and prior years' financial statements
116 CITY OF LAFAYETTE, COLORADO GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE SCHEDULE 5 For the Fiscal Year Ended December 31, 2007
General Fire Specific Total Fiscal Property District Ownership Cigarette Sales Franchise Use General Tax Year Tax (1) Tax Tax Tax Tax Tax Tax (2) Revenues
1998 1,686,491 11,313 142,845 44,737 3,552,435 391,907 2,857,779 8,687,507
1999 1,763,358 5,300 156,874 32,641 3,967,415 429,556 2,679,521 9,034,665
2000 1,934,810 5,300 176,292 38,550 4,648,750 (3) 529,572 2,539,708 (3) 9,872,982
2001 2,227,393 5,300 202,634 33,501 4,882,252 560,884 2,846,573 10,758,537
2002 2,780,105 5,300 248,688 33,343 (4) 4,965,407 559,043 2,848,171 11,440,057
2003 3,206,560 5,300 254,510 32,319 (4) 5,194,537 630,347 2,697,792 12,021,365
2004 3,380,859 5,300 256,791 35,560 (4) 5,631,759 708,253 2,673,111 12,691,633
2005 3,475,379 5,300 258,745 28,022 (4) 6,196,060 813,636 2,382,786 13,159,928
2006 4,339,992 5,300 296,474 35,640 (4) 7,037,401 863,349 2,374,054 14,952,210
2007 4,231,390 5,300 285,712 29,506 (4) 7,813,683 868,106 2,493,030 15,726,727
(1) Includes property taxes from general improvement districts (2) Includes taxes on building materials and motor vehicles. (3) Effective January 1, 2000, sales and use taxes increased from 3.25% to 3.50%. (4) Amount is included in intergovernmental revenue on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
117 CITY OF LAFAYETTE, COLORADO DIRECT AND OVERLAPPING SALES TAX RATES SCHEDULE 6 Last Seven Fiscal Years
Overlapping Rates Rapid Total Transit Cultural Football Overlapping Fiscal City of State of Boulder District Facilities Stadium Sales Tax Year Lafayette Colorado County RTD District District Rate
2001 3.50% 2.90% 0.55% 0.60% 0.10% 0.10% 7.75% 2002 3.50% 2.90% 0.55% 0.60% 0.10% 0.10% 7.75% 2003 3.50% 2.90% 0.55% 0.60% 0.10% 0.10% 7.75% 2004 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2005 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2006 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2007 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25%
Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Source: Current and prior years' financial statements
118 CITY OF LAFAYETTE, COLORADO PRINCIPAL SALES AND USE TAX PAYERS SCHEDULE 7 Last Seven Fiscal Years
2002 (1) 2003 2004 2005 2006 2007
Aggregate top ten filers (2)$ 2,642,451 $ 2,780,563 $ 3,144,410 $ 3,446,035 $ 3,713,861 $ 5,047,321
Aggregate all other filers 2,587,960 2,636,528 2,791,949 2,994,130 3,642,042 3,221,810
Total sales and use tax $ 5,230,411 $ 5,417,091 $ 5,936,359 $ 6,440,165 $ 7,355,903 $ 8,015,494
Top ten filers as a percentage of total sales tax 50.52% 51.33% 52.97% 53.51% 50.49% 62.97%
(1) Data for 2001 unavailable. (2) Colorado State Statutes and City of Lafayette Ordinances prohibit disclosure of individual sales tax returns, therefore the current year top ten filers are listed in alphabetical order as follows: Ace Hardware, Albertsons, Comcast, King Soopers, Qwest Corporation, Verizon Wireless, Vitamin Cottage, Walgreens, Walmart, and Xcel Energy. Notes: Excludes building use tax and motor vehicle use tax and audit revenue. The City of Lafayette implemented GASB 34 as of December 31, 2001 Source: Current and prior years' financial statements
119 CITY OF LAFAYETTE, COLORADO RATIO OF OUTSTANDING DEBT, BY TYPE SCHEDULE 8 Last Seven Fiscal Years
Governmental Activities Sales Tax Limited Tax General Fiscal Revenue Revenue Obligation Demand Capital Term Loan Year Bonds (1) Bonds Bonds Bonds Leases Payable
2001$ 6,635,000 $ 2,950,000 $ 5,208,903 $ 12,000,000 $ 584,962 $ 950,000 2002 6,100,000 2,940,000 7,535,616 24,500,000 442,107 923,416 2003 5,670,000 5,625,000 4,345,979 12,500,000 294,623 895,306 2004 5,010,000 5,530,000 3,885,000 12,500,000 184,916 865,702 2005 4,340,000 5,400,000 9,395,000 12,025,000 28,288 834,287 2006 3,660,000 5,340,000 8,680,000 11,525,000 14,308 801,067 2007 2,965,000 5,275,000 7,935,000 11,005,000 1,200,118 765,942
(1) Total sales tax is 3.5%. Sales tax revenue bonds are paid out of the 3% remaining, after .5% is set aside for open space. (2) General obligation bonds have been issued for business-type activities. While general obligation water bonds are direct obligations and pledge the full faith and credit of the City, the City is bound by bond covenant to establish water rates which will provide for operations and debt service. (3) Population figures used for per capita information taken from Internet -www.city-data.com/city/Lafyette-Colorado.html Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Source: Current and prior years' financial statements
120 Business-Type Activities General Water Sewer Golf Total Total Obligation Revenue Refunding Revenue Capital Term Loan Primary Debt Water Bonds (2) Bonds Bonds Bonds Leases Payable Government Population (3) Per Capita
$ 6,485,000 $ - $ 900,000 $ 900,000 $ 85,132 $ 7,861,139 $ 44,560,136 25,283 $ 1,762 6,025,000 - 690,000 500,000 - 7,861,139 57,517,278 26,121 2,202 5,645,000 15,645,000 470,000 500,000 - 7,838,505 59,429,413 25,373 2,342 5,095,000 15,645,000 240,000 500,000 - 7,754,980 57,210,598 25,051 2,284 4,535,000 15,645,000 - 461,200 - 7,663,956 60,327,731 25,798 2,338 3,955,000 15,809,458 - 420,200 165,073 7,303,810 57,673,916 25,864 2,230 3,350,000 15,645,000 - 377,000 120,609 7,083,555 55,722,224 26,453 2,106
121 CITY OF LAFAYETTE, COLORADO RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT LIMIT SCHEDULE 9 Last Seven Fiscal Years
Fiscal Year 2001 2002 2003 2004
General bonded debt outstanding General obligation debt (1)$ 35,078,903 $ 48,290,616 $ 50,400,979 $ 48,405,000 Total 35,078,903 48,290,616 50,400,979 48,405,000
Less: General obligation water bonds$ 6,485,000 $ 6,025,000 $ 5,645,000 $ 5,095,000 Water Revenue Bonds - - 15,645,000 15,645,000 Sewer revenue bonds 900,000 690,000 470,000 240,000 Tech Center GID Revenue Bonds - - - - Limited Tax Obligation Bonds 2,950,000 5,685,000 5,625,000 5,530,000 Sales tax revenue bonds 6,635,000 6,100,000 5,670,000 5,010,000 Demand Bonds 12,000,000 24,500,000 12,500,000 12,500,000 Golf course revenue bonds 900,000 500,000 500,000 500,000
Total net debt applicable to debt limit$ 5,208,903 $ 4,790,616 $ 4,345,979 $ 3,885,000
Estimated Actual Property Values (4) 1,995,992,500 2,025,956,955 2,494,049,689 2,589,204,957
Legal debt limit (2) 59,879,775 60,778,709 74,821,491 77,676,149
Legal debt margin (3)$ 39,720,812 $ 25,803,093 $ 70,475,512 $ 73,791,149
Outstanding debt as a percentage of debt limit 9% 8% 6% 5%
Population (5) 25,283 26,121 25,373 25,051 Net General Bonded Debt Per Capita $ 206 $ 183 $ 171 $ 155
(1) Source: Current and prior year's financial statements (2) Debt limit is 3% of Estimated Actual Real Estate Value (3) The legal debt margin is the city's available borrowing authority (4) Source: Boulder County Assessor's Office (5) Population figures used for per capita information taken from Internet -www.city-data.com/city/Lafyette-Colorado.html Note: The City of Lafayette implemented GASB 34 as of December 31, 2001
122 Fiscal Year 2005 2006 2007
General bonded debt outstanding General obligation debt (1)$ 51,801,200 $ 49,389,658 $ 46,552,000 Total 51,801,200 49,389,658 46,552,000
Less: General obligation water bonds$ 4,535,000 $ 3,955,000 $ 3,350,000 Water Revenue Bonds 15,645,000 15,645,000 15,645,000 Sewer revenue bonds - - - Tech Center GID Revenue Bonds - 2,040,000 2,040,000 Limited Tax Obligation Bonds 5,400,000 3,300,000 3,235,000 Sales tax revenue bonds 4,340,000 3,660,000 2,965,000 Demand Bonds 12,025,000 11,525,000 11,005,000 Golf course revenue bonds 461,200 420,200 377,000
Total net debt applicable to debt limit$ 9,395,000 $ 8,844,458 $ 7,935,000
Estimated Actual Property Values (4) 2,832,017,000 2,903,216,100 2,992,447,300
Legal debt limit (2) 84,960,510 87,096,483 89,773,419
Legal debt margin (3)$ 75,565,510 $ 78,416,483 $ 81,838,419
Outstanding debt as a percentage of debt limit 11% 10% 9%
Population (5) 25,798 25,864 26,453 Net General Bonded Debt Per Capita $ 364 $ 342 $ 300
123 CITY OF LAFAYETTE, COLORADO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT SCHEDULE 10 For the Fiscal Year Ended December 31, 2007
General Percentage Estimated Obligation Applicable Share of Bonded Debt To Overlapping Jurisdiction Outstanding Government Debt
Direct: City of Lafayette 11,285,000 100.00% 11,285,000
Overlapping: Boulder Valley School District RE-2 (1) 230,175,000 5.66% 13,027,905
Total 241,460,000 24,312,905
(1) The following entities overlap the City, but have no general obligation debt outstanding: Boulder County, Lafayette Rural Fire Protection District, Lefthand Water District, Louisville Fire Protection District, Urban Drainage and Flood Control District and the Regional Transportation District. Sources: Boulder County Assessor's Office and information obtained from individual entities.
124 CITY OF LAFAYETTE, COLORADO PLEDGED-REVENUE COVERAGE SCHEDULE 11 Last Seven Fiscal Years
General Obligation Water and Water Revenue Bonds
Net Fiscal Gross Available Debt Service Year Resources (1) Expenses (2) Revenue Principal Interest Coverage (3)
2001 9,865,133 2,369,461 7,495,672 440,000 347,399 9.52 2002 4,966,753 2,642,397 2,324,356 460,000 324,950 2.96 2003 5,832,700 4,074,441 1,758,259 545,000 (4) 317,888 2.04 2004 6,603,085 3,052,834 3,550,251 550,000 963,975 2.34 2005 8,103,805 3,174,499 4,929,306 560,000 946,191 3.27 2006 8,475,028 3,370,235 5,104,793 589,958 939,833 3.34 2007 8,743,832 3,262,208 5,481,624 615,604 919,852 3.57
Sales Tax Revenue Bonds
Sales & Use Debt Service Tax Increment Principal Interest Coverage
2001 6,634,402 510,000 344,505 7.76 2002 6,713,205 535,000 322,320 7.83 2003 6,774,074 (5) 690,000 314,520 6.74 2004 7,090,526 660,000 146,277 8.79 2005 7,326,359 670,000 133,077 9.12 2006 8,054,767 680,000 119,677 10.07 2007 8,619,750 695,000 106,078 10.76
(1) Gross resources include all operating revenues plus interest and other non-operating revenues. Also included are tap fees and cash received in lieu of water rights, both of which are classified as capital contributions. (2) Includes all operating expenses less depreciation, plus transfers out. (3) Net available revenue divided by total bond principle and interest. (4) Refunded 1992 GO Water bonds with 2003A Series bond issue in the amount of $2,665,000. (5) Refunded 1993 Sales & Use Tax bonds with 2003C Sales & Use Tax bonds in the amount of $6,360,000.
125 CITY OF LAFAYETTE, COLORADO DEMOGRAPHIC AND ECONOMIC STATISTICS AND TOP TEN EMPLOYERS FOR 1998 AND 2007 SCHEDULE 12 Last Seven Fiscal Years
Personal Income Per Median Fiscal Estimated (thousands Capita Median Education School Unemployment Year Population of dollars) Income Age Level Enrollment Rate
2001 25,283 663,970 27,780 35.3 13 3,877 3.8% 2002 26,121 681,032 26,072 33.8 13 3,712 5.7% 2003 25,373 698,094 27,510 33.8 13 3,712 5.7% 2004 25,051 715,156 28,548 33.8 14 3,994 5.0% 2005 25,798 732,218 28,383 33.8 14 4,086 4.5% 2006 25,864 749,280 28,970 34.4 14 4,159 3.7% 2007 26,453 714,919 34,276 33.8 14 4,840 2.8%
1998 2007 Estimated Estimated Number Number Firm Employees Firm Employees City of Lafayette 330 Exempla Good Samaritan Hospital 1000 Wal-Mart 189City of Lafayette 428 Design Fabricators 168 Boulder Valley Public Schools 390 Advanced Component Systems 162 Kaiser Permanente 350 Albertsons 93 Universal Forest Products 285 Coherent Technologies 74 Imagine! 250 McDonalds 40 Wal-Mart 190 Lafayette Florist 37 Rocky Mountain Instruments 150 Brannan Sand & Gravel 35 Albertsons 112 Wendy's 30 Northrup Grumman 110
Source: City of Lafayette Colorado Department of Labor and Employment Boulder County School District R-1 Internet - www.city-data.com/city/Lafayette-Colorado.html
126 CITY OF LAFAYETTE, COLORADO FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM SCHEDULE 13 Last Seven Fiscal Years
Function/Program 2001 2002 2003 2004 2005 2006 2007 Executive and Administration City Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 City Administrator City Administration 3.05 3.05 3.05 3.05 3.05 1.05 1.05 Community Development - - - - 2.00 2.00 2.00 City Clerk 1.00 1.50 1.50 1.00 1.00 2.00 2.00 Municipal Court 2.00 2.50 2.50 2.50 2.50 2.50 2.75 Finance Administrative Services 1.33 1.33 1.33 1.33 1.33 1.33 1.33 Human Resources 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Financial Services (Accounting) 7.00 6.00 6.00 6.00 6.00 6.00 7.00 Information Technologies 2.00 2.00 3.00 3.00 3.00 3.00 3.00 Planning Department Planning 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Public Safety Police Department 46.00 46.00 48.00 48.00 50.00 50.00 50.00 Fire Department 2.63 2.50 2.50 2.50 5.50 5.50 5.50 Ambulance ------10.89 Public Works & Utilities Public Works Administration 14.20 15.20 15.20 13.70 13.70 12.66 12.66 Water: Administration 0.40 1.20 1.20 1.20 1.20 2.29 1.54 Source of Supply 0.75 0.75 0.75 0.75 0.75 0.75 0.75 Treatment 11.50 11.75 11.75 11.13 11.50 10.00 10.75 Transmission & Distribution 7.50 7.50 8.25 8.25 6.75 7.50 7.50 Water Reclamation: Administration 0.40 0.60 0.60 0.60 0.60 0.93 0.93 Treatment 5.75 5.75 6.75 6.37 6.75 6.19 6.19 Collection 1.75 1.75 1.75 3.50 5.00 5.76 5.76 Parks, Open Space & Golf Department Parks & Open Space: Administration 2.80 2.80 2.80 2.80 2.80 2.17 1.67 Cemeteries - - - 1.31 1.31 1.31 1.31 Parks 9.93 10.91 10.42 9.11 9.11 10.11 10.51 Open Space Maintenance 1.00 1.00 1.00 1.00 1.00 1.50 2.50 Golf Course Administration 0.20 0.20 0.20 0.20 0.20 0.33 0.33 Golf Course Operations 12.50 12.50 14.27 10.17 11.63 10.63 10.63 Club House Operations 7.25 7.25 7.25 5.36 7.25 7.25 7.25 Snack Bar Operations 3.25 3.25 3.25 3.18 3.72 3.72 3.72 Sub totals 161.19 164.29 170.32 163.01 174.65 173.48 186.52
127 CITY OF LAFAYETTE, COLORADO FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM SCHEDULE 13 (CONTINUED) Last Seven Fiscal Years
Function/Program 2001 2002 2003 2004 2005 2006 2007 Recreation & Facility Management Department Recreation & Facility Management: Administration - - - - - 2.75 3.25 Leisure Services 11.25 11.17 10.94 9.94 10.94 9.74 9.24 Recreation 36.03 35.94 34.94 35.94 34.94 28.73 32.41 Building Maintenance 5.50 4.25 4.25 4.25 4.25 9.46 10.96 Community Life Department Library 16.10 17.21 17.21 17.21 17.21 18.04 17.87 Senior Services 2.00 3.00 3.00 3.50 3.50 3.50 3.50 Subtotals 70.88 71.57 70.34 70.84 70.84 72.22 77.23 Grand totals 232.07 235.86 240.66 233.85 245.49 245.70 263.75
Note: The City of Lafayette implemented GASB 34 as of December 31, 2001
128 CITY OF LAFAYETTE, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM SCHEDULE 14 Last Seven Fisal Years
Function/Program 2001 2002 2003 2004 2005 2006 2007 Police Physical arrests 1,711 1,553 1,486 1,630 1,605 1,492 1,149 Municipal Citations * 3,232 5,140 5,353 4,717 6,850 6,147 Fire Emergency responses 1,376 1,510 1,515 1,411 1,619 1,587 1,879 Inspections conducted 100 100 100 100 100 100 250 Parks, Open Space, Golf Course Golf Course rounds played 42,845 39,710 38,379 37,313 41,778 44,203 43,008 % Resident Play 23% 29% 29% 26% 21% 17% 20% Cemetary plot opening/closings 30 24 27 30 33 29 25 Recreation and Facility Management Individual Annual Passes sold 90 132 168 237 302 315 403 Couple or Family Annual Passes 83 118 140 198 255 242 293 Punch Cards sold 2,469 3,356 3,489 2,881 2,598 2,384 2,524 Total Attendance 227,803 237,266 230,870 222,313 230,367 226,284 235,506 Facilities and services not included in the reporting entity: Number of public elementary schools 4 4 4 4 4 4 4 Number of elementary instructors (1) 114.6 114.7 98.0 100.1 102.5 107.8 107.7 Number of public middle schools 1 1 1 1 1 1 1 Number of middle school instructors (1) 46.9 * 42.2 44.5 43.2 38.3 38.1 Charter school (K through 12) 1 1 1 1 1 1 1 Number of public high schools 1 1 1 1 1 1 1 Number of high school instructors (1) 61.3 * 58.3 63.3 62.7 61.8 65.5
* Information is unavailable (1) Full-time equivalents Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Source: Various City of Lafayette Departments Boulder Valley School District
129 CITY OF LAFAYETTE, COLORADO CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM SCHEDULE 15 Last Seven Fiscal Years
Function/Program 2001 2002 2003 2004 2005 2006 2007 Police Stations 1 1 1 1 1 1 1 Commissioned officers 36 31 35 37 37 39 40 Fire Stations 1 1 1 1 1 1 1 Public Works Centerline miles of streets 82 92 94 97 97 97 97 Street lights 1,476 1,414 1,450 1,461 1,461 1,512 1,512 Recreation and Culture Parks 15 15 15 17 17 18 18 Developed acres 205 205 205 217 230 236 236 Undeveloped acres 74 151 151 151 151 216 216 Open Space acres 741 996 996 996 1,042 1,042 1,120 Libraries 1 1 1 1 1 1 1 Utilities Water mains (miles) 215 218 227 230 230 230 233 Sanitary sewer (miles) 179 181 184 186 186 186 191 Water connections 7,324 7,439 7,518 7,809 8,097 8,197 8,240 Wastewater connections 6,851 6,942 7,173 7,544 7,571 7,672 7,685
Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Source: Various City of Lafayette Departments
130 COMPLIANCE SECTION
This section consists of the following:
• Local highway finance report
2007
131 132