Jefferson County, Colorado Comprehensive Annual Financial Report For the year ended December 31, 2016 Comprehensive Annual Financial Report L IBBY S ZABO , CASEY TIGHE AND DONALD ROSIER JEFFERSON COUNTY, COLORADO BOARD OF COMMISSIONERS Prepared by Jefferson County Accounting Division For the year ended December 31, 2016 Peaks to Plains Trail, Clear Creek Canyon Park The Peaks to Plains Trail through Clear Creek Canyon Park in and around Golden, Colorado represents a trail of statewide significance as it is a critical piece of a future 65-mile-long trail corridor and a connection to a larger 200-mile statewide trail. The vision for the entire Peaks to Plains Trail is that it will one day connect the South Platte Trail in Denver to Loveland Pass and then westward via many existing trails all the way to Glenwood Springs. The Clear Creek Canyon Park segment is managed by Jeffco Open Space and construction started on the Peaks to Plains Trail in January 2014. The first three miles of trail, shared with Clear Creek County Open Space, were opened in July 2016, and in 2017 the trail will be extended downstream about three-fourths of a mile to a new trailhead. The construction of this trail in Clear Creek Canyon has been some of the most challenging and innovative trail-building work that Jeffco Open Space has been involved with, and once complete, this legacy project will allow future generations to experience and connect with the outdoors in this spectacular canyon. After three years of rigorous work, Jefferson and Clear Creek Counties proudly opened their first segment of the Peaks to Plains Trail on July 28, 2016. Three miles of paved, multi-use trail featuring three bridges, six river access points, six scenic overlooks and 16 boulder benches are available for exploring and taking in the scenery. ABOUT THE REPORT Jefferson County, Colorado is pleased to present the 2016 Comprehensive Annual Financial Report. This document was only made possible with the strong support of the Board of Commissioners, other elected officials, the County Manager, the Audit Committee and the staff of the various County departments. The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial, and Statistical. The Introductory Section includes the Accounting Division’s transmittal letter, the elected officials, and the County’s organization chart. The Financial Section includes the auditor’s opinion, management’s discussion and analysis, the basic financial statements, and the combining statements and schedules. The Statistical Section includes fiscal, economic, and demographic information about the County. The Comprehensive Annual Financial Report and other financial reports are available on the Internet at: http://jeffco.us/accounting/ Peaks to Plains Trail, Clear Creek Canyon Park GOVERNOR HICKENLOOPER RIDES THE TRAIL Jefferson and Clear Creek Counties were thrilled to have CO Governor Hickenlooper visit the trail on September 30, 2016. He even rode his bike to experience it first-hand. Shown left to right are Clear Creek County Commissioners Phil Buckland, Tim Mauck, Governor John Hickenlooper, and Jefferson County Commissioners Libby Szabo and Casey Tighe. Jefferson County, Colorado Comprehensive Annual Financial Report Table of Contents Introductory Section Page Letter of Transmittal ............................................................................................................................................ 6 Elected and Appointed Officials ........................................................................................................................ 12 Organizational Chart .......................................................................................................................................... 13 GFOA Certificate of Achievement .................................................................................................................... 14 Financial Section Independent Auditor’s Report ............................................................................................................................ 16 Management’s Discussion and Analysis ............................................................................................................ 20 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ..................................................................................................................... 39 Statement of Activities .......................................................................................................................... 40 Fund Financial Statements Balance Sheet – Governmental Funds .................................................................................................. 42 Reconciliation of Total Governmental Fund Balances to the Statement of Net Assets ........................ 43 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .......... 44 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Funds Balances of Governmental Funds to the Statement of Activities .................................................................. 45 Combined Statement of Net Position – Proprietary Funds ................................................................... 46 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds......................... 47 Statement of Cash Flows – Proprietary Funds ...................................................................................... 48 Statement of Fiduciary Assets and Liabilities – Fiduciary Funds ......................................................... 50 Notes to the Basic Financial Statements Note 1. Summary of Significant Accounting Policies ......................................................................... 53 Note A. Government-wide Financial Statements .......................................................................... 53 Note B. Financial Reporting Entity ............................................................................................... 53 Note C. Measurement Focus ......................................................................................................... 54 Note D. Basis of Accounting ......................................................................................................... 56 Note E. Eliminating Internal Activity ........................................................................................... 56 Note F. Encumbrance Accounting ................................................................................................ 57 Note 2. Accounting Policies for Specific Assets, Liabilities, and Net Position ................................... 57 Note 3. Accounting Policies for Revenues and Expenditures/Expenses ............................................. 60 Note 4. Stewardship, Compliance, and Accountability ....................................................................... 61 Note 5. Deposits and Investments ........................................................................................................ 62 Note 6. Interfund Transactions ............................................................................................................ 64 Note 7. Capital Assets .......................................................................................................................... 65 Note 8. Commitments .......................................................................................................................... 68 Note 9. Related Party Transactions ..................................................................................................... 69 Note 10. Certificates of Participation ................................................................................................... 70 Note 11. Bonds Payable ....................................................................................................................... 71 Note 12. Loans Payable ....................................................................................................................... 74 Page 1 Jefferson County, Colorado Comprehensive Annual Financial Report Note 13. Lease Commitments .............................................................................................................. 74 Note 14. Summary of Annual Long-Term Debt Requirements ........................................................... 75 Note 15. Changes in Long-term Liabilities .......................................................................................... 76 Note 16. Conduit Debt Obligations ...................................................................................................... 76 Note 17. Tax Abatements ..................................................................................................................... 77 Note 18. Reservations and Designations of Fund Balances ................................................................. 77 Note 19. Retirement Plan ..................................................................................................................... 79 Note 20. Deferred Compensation ......................................................................................................... 79 Note 21. Risk Management .................................................................................................................. 79 Note 22. Contingencies .......................................................................................................................