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HomeMy Public PortalAboutTBP 2019-07-17Board of Trustees Regular Meeting Agenda Fraser Town Hall, 153 Fraser Avenue Wednesday July 17, 2019 7:00 PM - 9:00 PM Members of the Board may have dinner together @ 5:30 p.m. NOTE: Times are approximate and agenda subject to change Roll Call Approval Of Agenda Bi -Weekly Update Bi -Weekly Update 12 July 2019.Pdf Consent Agenda Final Acceptance Elk Creek 1 And 2 Final Acceptance Willows 1 And 3 Resolution 2019 -07 -05 Authorizing Concrete And Asphalt Expenditures Resolution 2019 -07 -05 -2019 Asphalt -Concrete Repairs.pdf Public Hearing And Possible Action Ski Broker Easement Vacation Briefing Ski Broker Easement Vacation.pdf Vacation Petition And Legal.pdf Agency Review Comments.pdf Final Plat Reception No. 198590.Pdf Improvement Survey Plat.pdf Easement Vacation Public Notice.pdf Ordinance No. 471 Easement Vacation.pdf Discussion And Possible Action Regarding 2018 Audit Presentation Town OF Fraser 2018 Communication With Governing Board - Draft.pdf Town Of Fraser 2018 Preliminary Audited Financials - Draft.pdf Intergovernmental Agreement With Grand County For County Road 8 Resolution 2019 -07 -07 CR 8 IGA.pdf Resolution 2019 -07 -08 Well 8 Outfitting Expenditures 07 -17 -19 FrWell8 Reconstruction Pt2 -HRS.pdf Resolution 2019 -07 -06 HRS On Well 8.Pdf Open Forum a) Business not on the agenda (If you would like to request time on the agenda please contact the Town Clerk, Antoinette McVeigh at 970 -726 -5491 ext. 201) Updates Executive Session For the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and/or instructing negotiators, under C.R.S. Section 24 -6 -402(4)(e) regarding annexation Adjourn UPCOMING MEETING WED. AUGUST 7, 2019 BOARD OF TRUSTEES 1.7:00 P.M. 2. a. Documents: 3. a. b. c. Documents: 4. a. Documents: 5. a. Documents: b. Documents: c. Documents: 6. 7. 8. 9. Board Staff Direct : Define the service, product or value to be delivered Lead : Future focused planning Protect : Establish the operational boundaries to be respected by Staff and monitored by the Board Manage : Now focused policy and procedural guidance to ensure on time, on budget, and on target service delivery Enable : Advocacy, resource development, and role discipline Accomplish : Ensure the work defined by the direction of the Board of Trustees is accomplished Board of TrusteesRegular Meeting AgendaFraser Town Hall, 153 Fraser AvenueWednesday July 17, 20197:00 PM - 9:00 PMMembers of the Board may have dinner together @ 5:30 p.m. NOTE: Times are approximate and agenda subject to changeRoll CallApproval Of AgendaBi-Weekly UpdateBi-Weekly Update 12 July 2019.PdfConsent AgendaFinal Acceptance Elk Creek 1 And 2Final Acceptance Willows 1 And 3Resolution 2019 -07 -05 Authorizing Concrete And Asphalt ExpendituresResolution 2019 -07 -05 -2019 Asphalt -Concrete Repairs.pdfPublic Hearing And Possible ActionSki Broker Easement VacationBriefing Ski Broker Easement Vacation.pdfVacation Petition And Legal.pdfAgency Review Comments.pdfFinal Plat Reception No. 198590.PdfImprovement Survey Plat.pdfEasement Vacation Public Notice.pdfOrdinance No. 471 Easement Vacation.pdfDiscussion And Possible Action Regarding 2018 Audit Presentation Town OF Fraser 2018 Communication With Governing Board - Draft.pdf Town Of Fraser 2018 Preliminary Audited Financials - Draft.pdf Intergovernmental Agreement With Grand County For County Road 8 Resolution 2019 -07 -07 CR 8 IGA.pdf Resolution 2019 -07 -08 Well 8 Outfitting Expenditures 07 -17 -19 FrWell8 Reconstruction Pt2 -HRS.pdf Resolution 2019 -07 -06 HRS On Well 8.Pdf Open Forum a) Business not on the agenda (If you would like to request time on the agenda please contact the Town Clerk, Antoinette McVeigh at 970 -726 -5491 ext. 201) Updates Executive Session For the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and/or instructing negotiators, under C.R.S. Section 24 -6 -402(4)(e) regarding annexation Adjourn UPCOMING MEETING WED. AUGUST 7, 2019 BOARD OF TRUSTEES 1.7:00 P.M.2.a.Documents:3.a.b.c.Documents:4.a.Documents:5. a. Documents: b. Documents: c. Documents: 6. 7. 8. 9. Board Staff Direct : Define the service, product or value to be delivered Lead : Future focused planning Protect : Establish the operational boundaries to be respected by Staff and monitored by the Board Manage : Now focused policy and procedural guidance to ensure on time, on budget, and on target service delivery Enable : Advocacy, resource development, and role discipline Accomplish : Ensure the work defined by the direction of the Board of Trustees is accomplished Bi-W e e k l y U p d a t e J u l y 1 2 , 2 0 1 9 Highlights • Fraser Mountain Mural Festival • Picnic in the Park • Public Works Upcoming Events July 13 - 14 Alpine Artaffair at Hideaway Park July 16 Picnic in the Park at Old Schoolhouse Park July 20 - 21 Jazz Festival at Hideaway Park July 20 - 21 Epic Single Track Series Race 4 at Winter Park Resort July 13 - August 17 High Country Stampede Rodeo July 26 - 27 Fraser Mountain Mural Festival Fraser Mountain Mural Festival Preparations are nearing completion for the upcoming Fraser Mountain Mural Festival on July 26 and 27 located east of the new Fraser Distill- ery on Doc Susie Ave in downtown Fraser. Twenty one artists from near and far will be competing for awards and recognition by showing off their best work on their primed 8'x8' panels. Kids can get in on the art with their very own collective murals each day. Be sure to stop by, see a vari- ety of art displays and enjoy some live music! For more information, check out www.frasermountainmuralfest.com. Above is a conceptual rendering of the first ever Fraser Mountain Mu- ral Festival. Schedule of Events: Friday 7/26 8-9 AM: Artist Check In 9 AM: Painting Begins 10 AM - 4 PM: Broadcast by KFFR 6 PM: Painting Ends Saturday 7/27 9 AM: Painting Begins 10 AM - 4 PM: Broadcast by KFFR 4 PM - 6 PM: Live Music by Hunker Down 6 PM: Painting Ends 6:30 - 7 PM: Awards Ceremony P a g e 2 Bi-W e e k l y U p d a t e Picnic in the Park P a g e 3 Bi-W e e k l y U p d a t e Public Works HWY 40 Pedestrian Safety Improvement Project Update The HWY 40 Pedestrian Safety Improvement Project is on schedule at about 95% completion with anticipated completion by mid July. Crosswalks will be repainted and streets restriped soon. Street Operations You may have seen the “grassy knoll” under construction. It will become a permanent location for Tucker, the snow cat. Our street operators have been busy filling, compacting, and leveling our new HWY 40 medians with dirt and top soil that will be seeded with a variety of flowers and shrubs in the spring of 2020. Water Utilities The water utilities team continues to work tirelessly on annual inspections of the Town’s infrastructure. Hundreds of valves, hydrants and manholes keep them busy all summer. When a new subdivision is built, the developer installs the water mains, fire hydrants, sanitary sewer collection lines and manholes. The developer owns the infrastructure un- til it has been inspected by the Town to ensure that it was built in compliance with our design standards and building codes so that there will be no unforeseen costs associat- ed with accepting the product. This protects taxpayers from future expenditures. The utilities team is currently observing construction on new infrastructure being in- stalled in Rendezvous. Wastewater Treatment Plant Wastewater flows over the 4th of July week into the wastewater treatment plant (WWTP) were the highest levels observed since Christmas and New Year’s Day. On a normal summer week, inlet flows to the WWTP are about 0.5-0.6 million gallons per day but during the 4th of July week, levels observed were between 1.2 to 2 millions gallons per day. That’s a lot of wastewater being treated and put back into the Fraser River! In the photo above, street operators work on the area at the south entrance to the Lions Ponds where “Tucker” the snow cat will be set. Pictured above is a new waterline installation in a new subdivision under the supervision of our wa- ter utilities crew. P a g e 4 Bi-W e e k l y U p d a t e Please feel free to contact us with any questions Town Hall 970-726-5491 A full list of contacts can be found at: www.frasercolorado.com Town of Fraser PO Box 370, Fraser, CO 80442 Did You Know… That Grand County contains one of the highest concentrations of moose throughout the entire state of Colorado. Willow trees and shrubs (pictured below) make up over 90% of a moose’s 55-pound-a-day-diet. Pictured above is just one of seven of the water bottle color options that will be available at the Fraser Mural Mountain Festival on July 26 and 27. TOWN OF FRASER RESOLUTION NO. 2019-07-05 A RESOLUTION APPROVING A PUBLIC WORKS CONTRACT FOR ASPHALT AND CONCRETE REPAIR AND REPLACEMENT WHEREAS, the 2019 Budget provides funds for general street repairs and replacement for asphalt and concrete surfacing in the amount of $250,000. THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT: 1.The Town Board of Fraser, Colorado hereby authorizes the Town Manager to execute Public Works Contracts for asphalt and concrete repairs for Town owned infrastructure. READ,PASSED ON ROLL CALL VOTE,AND ADOPTED BY THE BOARD OF TRUSTEES THIS 17th DAY OF JULY, 2019. Votes in favor: ___ BOARD OF TRU Votes in favor: ___BOARD OF TRUSTEES OF THE Votes opposed: ___TOWN OF FRASER, COLORADO Absent: ___ Abstained: ___BY: Mayor ATTEST: (S E A L) Town Clerk Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com MEMO TO:Mayor Vandernail and the Board of Trustees FROM:Catherine Trotter, AICP, Town Planner DATE:July 9, 2019 SUBJECT:Petition to Vacate Access & Utility Easement MATTER BEFORE BOARD: We are in receipt of a petition to vacate a portion of an access and utility easement at 601 South Zerex Street, Fraser, CO. The recorded Final Plat for Forest Meadows Solar Community (Reception #198590) is in the packet. The applicant is Ski & Board Broker, LLC. ACTION REQUESTED: The easement vacation review procedure is detailed in Section 19-3-245 of the Fraser Town Code at: https://library.municode.com/co/fraser/codes/municipal_code?nodeId=CH19LADECO_ART3SU _DIV2AD_S19-3-245PLRI-WEAVA The applicant is requesting that the Board approve this easement vacation request. BACKGROUND: Please review the vacation petition as submitted by the applicant. Town staff has referred a copy of the vacation petition/request and all accompanying documents to affected governmental agencies, special districts and private and public utility companies for review and comment. Agency review comments are included in the packet. See Final Plat in packet with access and utility easement shaded in gray. Improvement Survey Plat is also in packet The Code and Review Procedures Chart Table 1.1 requires a public hearing before the Board of Trustees. The Board shall consider the vacation petition and review an ordinance vacating the easement at a public hearing and either approve, approve with conditions or deny the vacation petition. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com RECOMMENDATION: Staff is recommending that the Board approve the vacation petition. Included in the packet is an ordinance authorizing the vacation of the access and utility easement. Let me know if you have any questions. ctrotter@town.fraser.co.us PROOF OF PUBLICATION Ad #: 0000442891-01 Customer: TOWN OF FRASER, Your account number is: 1095750 COUNTY OF GRAND STATE OF COLORADO I, Meg Boyer, do solemnly swear that I am Publisher of the MIDDLE PARK TIMES, that the same weekly newspaper printed, in whole or in part and published in the County of Grand, State of Colorado, and has a general circulation therein; that said newspaper has been published continuously and uninterruptedly in said County of Grand for a period of more than fifty-two consecutive weeks next prior to the first publication of the annexed legal notice or advertisement; that said newspaper has been admitted to the United States mails as a periodical under the provisions of the Act of March 3, 1879, or any amendments thereof, and that said newspaper is a weekly newspaper duly qualified for publishing legal notices and advertisements within the meaning of the laws of the State of Colorado. MIDDLE PARK TIMES That the annexed legal notice or advertisement was published in the regular and entire issue of every number of said weekly newspaper for the period of 1 insertion; and that the first publication of said notice was in the issue of said newspaper dated 7/4/2019 and that the last publication of said notice was dated 7/4/2019 in the issue of said newspaper. In witness whereof, I have here unto set my hand this day, 7/8/2019. Subscribed and sworn to before me, a notary public in and for the County of Grand, State of Colorado this day 7/8/2019. Meg Boyer, Publisher Jerilynn Medina, Notary Public August 3, 2020My Commission Expires: McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 M & A The Honorable Mayor and Fraser Town Board Town of Fraser P.O. Box 120 Fraser, Colorado 80442 We have audited the financial statements of the Town of Fraser for the year ended December 31, 2018. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Town of Fraser are described in the Notes to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives for depreciation on fixed assets: Management’s estimate of useful lives is based on industry practice and experience. We evaluated the key factors and assumptions used to develop the useful lives used in determining depreciation and found that it is reasonable in relation to the financial statements taken as a whole. Estimated allowance for uncollectible accounts receivable ($0) at December 31, 2018 Management’s estimate is based on their experience with utility customers and developers, together with actual collections history since year-end. We believe this estimate is reasonable relative to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements prior to reporting the Town’s year-end financial report. The following material misstatements were corrected by management prior to issuance of the audited financial statements: Record liability and expenditures for transportation and street improvement expense incurred. Capitalize capital asset additions and record depreciation expense. Town of Fraser Page 2 Corrected and Uncorrected Misstatements (continued) Record receivable and revenue for member’s portion of JFOC invoices accrued and adjust reversal of prior year receivable between member’s accounts. Adjust JFOC reserve accounts for reserve activity. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. W e are pleased to report that no such disagreements arose during the course of our audit. Management Representations As is required in an audit engagement we have requested certain representations from management that are included in the management representation letter. Recommendation Inventory Tracking –Trash Bags During 2018, the Town implemented a “pay as you throw” trash service. Trash bags were purchase in bulk by the Town and are being sold be the Town and local retailers. It came to our attention there is no physical inventory count performed over the trash bags and the inventory is not properly secured. It is recommended that access to the bags be limited to necessary staff and that a physical inventory count be performed at least annually and reconciled to the trash bag tracking sheet. This report is intended solely for the information and use of the Town Board, management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. Town of Fraser Fraser, Colorado Financial Statements December 31, 2018 DRAFT i Town of Fraser, Colorado Financial Report December 31, 2018 Table of Contents Page INDEPENDENT AUDITOR'S REPORT A1 – A2 Management’s Discussion and Analysis B1 –B11 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets C1 Statem ent of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Reconciliation of Governmental Fund Balance to Governmental Activities Net Assets C4 Statement of Revenues, Expenditures and Changes in Fund Balances C5 Reconciliation of Net Change in Fund Balances to Change in Net Assets of Governmental Activities C6 Business-Type Funds: Statement of Net Assets -Enterprise Funds C7 Statement of Revenues, Expenses and Changes in Net Assets - Enterprise Funds C8 Statement of Cash Flows -Enterprise Funds C9 Fiduciary Fund: Statement of Fiduciary Assets and Liability C10 Statement of Changes in Fiduciary Assets and Liabilities C11 Notes to the Financial Statements D1 – D24 Required Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual -General Fund E1 Schedule of Revenues -Budget (GAAP Basis) and Actual -General Fund E2 DRAFT ii Town of Fraser, Colorado Financial Report December 31, 2018 Table of Contents (Continued) Page Required Supplementary Information (continued): Schedule of Expenditures and Transfers -Budget (GAAP Basis) and Actual General Fund E3 Special Revenue Fund -Conservation Trust Fund E4 Special Revenue Fund –Restricted Revenue Fund E5 Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget (GAAP Basis) and Actual Debt Service Fund F1 Capital Projects Fund -Capital Equipment Replacement Fund F2 Schedule of Revenues, Expenditures and Changes in Net Position - Budget (Non-GAAP Basis) and Actual W ith Reconciliation to GAAP Basis Enterprise Fund -Water Fund F3 Enterprise Fund -Wastewater Fund F4 Agency Fund -JFOC Fund F5 Annual Schedule of Revenues and Expenditures for Roads, Bridges and Streets F6 – F7 DRAFT McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 A1 M & A INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Board Town of Fraser, Colorado We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Fraser (the “Town”),as of and for the year ended December 31, 2018, which collectively comprise the Town’s basic financial statements as listed in the table of contents, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 Town of Fraser as of December 31, 2018, and the respective changes in financial position and, where applicable,cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. DRAFT To the Honorable Mayor and Town Board Town of Fraser A2 Other Matters Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis in Section B be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Management’s Discussion and Analysis in Section B in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of managem ent about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information in section E is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statement or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively com prise the Town’s financial statements as a whole. The individual fund budgetary comparisons found in Section F and the Local Highway Finance Report are presented for purposes of additional analysis and are not a required part of the basic financial statements. The individual fund budgetary comparisons found in Section F and the Local Highway Finance Report are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. McMahan and Associates, L.L.C. DRAFT MANAGEMENT’S DISCUSSION AND ANALYSIS DRAFT B1 Town of Fraser, Colorado Management’s Discussion and Analysis December 31, 2018 As management of the Town of Fraser, Colorado, (“Town”), we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2018. The Town provides a high level of local government service and availability to the community including operation of the Town’s water and wastewater systems, a public works department that provides for street maintenance, snow removal and management, park and open space preservation, public building and facility management and maintenance. Our planning department provides support for both our business/economic sectors in addition to community development support, all while maintaining our small town character in the bigger mountain resort community that we are a part of. The Town currently acts as the manager of the Upper Fraser Valley W astewater Treatment Facility –providing both the operational expertise and financial management of the facility for the three member organizations who share the plant. In addition,the Town participates in a joint Fraser/Winter Park Police Department and a joint Winter Park/Fraser/Granby Building Services Department. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements include 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. Government-wide financial statements:The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all Town assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position 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 (i.e. uncollected revenues such as grants or earned but unused vacation leave.) Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the Town include general government, public safety, public works, and culture and recreation. The business-type activities of the Town include water production, water distribution system operation and maintenance, and the operation and maintenance of the Town’s wastewater collection system. The government-wide financial statements can be found on pages C1 and C2 of this report. 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 Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental and proprietary funds. DRAFT B2 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 government’s near-term financing decisions. The expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The fund financial statements for the governmental funds are shown on pages C3 and C5. The Town’s Budget includes the following governmental funds: General Fund (GF), which provides for the general functions and services such as adm inistration, planning, law enforcement, streets and properties. Capital Asset Fund (CAF), which is intended to fund long term maintenance of capital assets (streets, buildings, parks, trails, etc.). The CAF is consolidated with the GF in the financial statements. Restricted Revenue Fund (RRF), which is funded by a dedicated sales tax to be used for transportation,trails, and capital project expenditures. Debt Service Fund (DSF), which provides for bonded debt service payments. Conservation Trust Fund (CTF), which is funded by lottery proceeds and provides for open space and recreational related capital projects. Capital Equipment Replacement Fund (CERF), which provides for vehicle and heavy equipment purchases. The Town adopts an annually appropriated budget for all governmental funds. A budgetary comparison statement has been provided for the General Fund, Restricted Revenue Fund, Conservation Trust Fund, Debt Service Fund and Capital Equipment Replacement Fund to demonstrate compliance with the State budget statutes. These are included in Sections E and F. Proprietary funds:The Town maintains two proprietary funds commonly known as enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for its water operations and one to account for its wastewater operations, which was established on December 31, 2009 by the dissolution of the Fraser Sanitation District. 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 each of the business-type services provided by the Town. The Town’s Budget includes the following enterprise funds: Water Fund (WF), an enterprise fund for the Town’s water utility. Wastewater Fund (WW F),an enterprise fund for the Town’s wastewater utility. The basic proprietary fund financial statements can be found on pages C7 through C9 of this report. The Town also presents a budgetary comparison for its proprietary funds on pages F3 and F4. Fiduciary fund: As managers of the Upper Fraser Valley Wastewater Treatment Plant (“UFVWWTP”), the Town operates the Joint Facilities Fund (“JFF”) as a fiduciary fund to account for the operations and maintenance of the facility along any capital expenditures related to the plant. JFF Operations and Maintenance (O&M)and the JFF Capital Replacement Reserve (CRR), both of which provide for operations and capital projects at the W astewater Treatment Plant. The JFF activity is found on pages C10, C11,and F5. DRAFT B3 Overview of the Financial Statements (continued) 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. The Notes to the Financial Statements can be found at Section D of this report. The largest portion of the Town’s assets are reflected in the investment in capital assets (i.e. land, streets, buildings, improvements, and equipment). Capital assets account for 66%of the total assets of $41,580,716. The Town uses these assets to provide services to its citizens. The Town has to pay liabilities out of the remaining liquid assets. The Town also has assets that are considered restricted for a variety of purposes. Accordingly, these assets are not an available source for payment of future spending, other than as restricted. The Town is showing the detail of restricted net position below on page B4 and also on page D19 of the footnotes. Government-wide Fund Analysis Financial Highlights On a short term view, the Town’s governmental fund balances increased by $367,018 in 2018. The Town’s General Fund’s fund balance increased by $348,326. On a long-term view (including depreciation and excluding capital outlay, etc.) the Town had a 2% $706,497) increase in net position from $39,608,221 to $40,314,718. “Net Position” for the Town refers to both the governmental and business-type (Water Fund (WF) and W astewater Fund (WWF)) activities. The business-type activities (W F & WWF) had an increase in net position of $153,204, while the governmental activities had an increase in net position of $553,293. The “long-term” view includes depreciation expense. On page D6 you will see the schedule the Town uses to depreciate its assets. On pages D15 -D16 you will see the corresponding schedules for depreciation and additions to capital assets (capital outlay). It’s important to review the depreciation schedule and compare it to the age of the assets being depreciated. Annual depreciation expense for streets exceeds $500,000 and there is no designated revenue source or reserves associated with this asset. Annual depreciation expense on water and wastewater assets exceeds $800,000,with almost $500,000 of that depreciation relating to underground utilities. Over half the Town’s underground utilities have exceeded their depreciation life cycle. At December 31, 2018, The Fraser Town Board has many committed reserves in its General Fund and both of its Enterprise Funds, along with a reserve for unforeseen Joint Facility emergencies. These reserves will allow the Town to meet its short term obligations for safe, reliable and sustainable water and wastewater systems. Available resources will be freed up in the 2019 Budget to address annual street maintenance as all long term bonded indebtedness will be paid for from the Debt Service Fund’s reserves.The Town continues to allow for additional growth in utilities and streets, while the issue of the cost of maintenance reflected by service fees and GF revenues remains a community concern. DRAFT B4 Government-wide Fund Analysis (continued) The Town’s restricted net position for 2018 is shown in the following schedule: Ba la nce Ba la nce 1/1/18 Ad diti ons De leti ons 12/31/18 General Fund: Fees in lieu of Park 6,379$ - - 6,379 Affo rdable hous ing impac t fee 134,426 - - 134,426 Emergency res erves 130,000 8,000 - 138,000 Cons ervat ion Tr us t Fund 24,596 - (18,314) 6,282 Res tric ted Revenue Fund 54,023 640,433 (694,456) - Wastewat er Fund Operat ing reserve 49,042 1,042 - 50,084 Capital replac ement res erve 638,089 51,737 (178,777) 511,049 1,036,555$ 701,212 (891,547) 846,220 The following shows the Town’s net position for 2018: 2018 2017 2018 2017 2018 2017 As sets: Current a nd other a ssets 5,737,037$ 5,653,039 8,498,247 8,192,276 14,235,284 13,845,315 Capital as sets 8,502,122 8,217,654 18,843,310 18,950,576 27,345,432 27,168,230 Total Assets 14,239,159 13,870,693 27,341,557 27,142,852 41,580,716 41,013,545 Lia bilitie s: Oth er l iabilities 533,748 836,667 431,235 377,962 964,983 1,214,629 Long-te rm l iabilities outstanding 151,458 - - -151,458 - Total Liabilitie s 685,206 836,667 431,235 377,962 1,116,441 1,214,629 De ferred Inflow s of Re sour ces: Property taxe s 254,157 190,695 - - 254,157 190,695 Total Deferred Inflow s of Re sources 254,157 190,695 - - 254,157 190,695 Ne t Position: Net i nves tm ent in capital as sets 8,350,664 8,217,654 18,843,310 18,950,576 27,193,974 27,168,230 Restricted 264,897 349,424 701,475 687,131 966,372 1,036,555 Unres tricted 4,781,063 4,276,253 7,373,309 7,127,183 12,154,372 11,403,436 Total Net Position 13,396,624$12,843,331 26,918,094 26,764,890 40,314,718 39,608,221 Tow n of Fraser's Ne t Position Go ve rnmental Bus ine ss-type Ac tivities Ac tivities Total DRAFT B5 Government-wide Financial Analysis (continued) At the end of the current fiscal year, the Town is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business- type activities. The following chart is a summary of the Town’s Change in Net Position: 2018 2017 2018 2017 2018 2017 REVENUES: Pr ogram re ve nues : C harges for s ervi ces 231,736$ 152,268 1,839,077 1,758,450 2,070,813 1,910,718 Op erating grants and contr ibutions 158,810 108,666 12,861 16,564 171,671 125,230 C apital grants and contr ibutions 16,178 - 646,000 829,600 662,178 829,600 Ge neral reve nues : Pro perty ta xe s 192,843 209,388 - - 192,843 209,388 Sales a nd Us e ta xe s 3,696,462 3,583,910 - - 3,696,462 3,583,910 Oth er ta xe s 86,724 85,021 - - 86,724 85,021 Inte rest a nd other r evenue 410,818 (177,648) 139,991 69,846 550,809 (107,802) Tota l Re ve nue s 4,793,571 3,961,605 2,637,929 2,674,460 7,431,500 6,636,065 EX PENS ES : Ge neral government 1,903,992 1,718,808 - - 1,903,992 1,718,808 C ulture and recreation 33,452 39,655 - - 33,452 39,655 Pu blic safety 518,480 476,613 - - 518,480 476,613 Pu blic works 1,802,336 1,545,094 - - 1,802,336 1,545,094 Inte rest 2,018 22,480 - - 2,018 22,480 Wa te r - - 1,370,070 979,038 1,370,070 979,038 Wa stewater - - 1,094,655 994,971 1,094,655 994,971 Tota l Expenses 4,260,278 3,802,650 2,464,725 1,974,009 6,725,003 5,776,659 Cha nge in Net Pos ition Be fore Tr ansfers 533,293 158,955 173,204 700,451 706,497 859,406 Trans fe rs i n (out)20,000 20,000 (20,000) (20,000) - - Cha nge in Net Pos ition 553,293 178,955 153,204 680,451 706,497 859,406 Ne t Pos ition-J an 1 12,843,331 12,664,376 26,764,890 26,084,439 39,608,221 38,748,815 Ne t Pos ition - December 31 13,396,624$12,843,331 26,918,094 26,764,890 40,314,718 39,608,221 Tota l Tow n of Fraser's Change in Net Posi ti on Go ve rnmental Bus ine ss-type Ac tivities Ac tivities Governmental activities: Governmental activities increased the Town’s net position by $553,293 during 2018, as compared to an increase in net position of $178,955 during 2017. The following are the major elements of the change in net position of governmental activities from December 31, 2017 to December 31, 2018: During 2018, the Town received grant funds related to the recyc le facility. Interest rates on deposits improved significantly over the prior year, and sales and use taxes increased. DRAFT B6 Government-wide Financial Analysis (continued) The following is a graph of the Town’s governmental activities revenues by source for 2018.The Town continues to be challenged by its dependence on the very volatile resort based sales tax revenues. Fortunately,the Town has the community’s grocery, hardware, and department stores within its municipal boundaries. The Town will continue to help the local business community attract and develop a more varied mixture of vendors appealing to both the community’s residents and its resort vacationers. Cha rges f or services , $231,736 Operati ng G rants & Contributions , $158,810 Property Taxes , $192,843 Sa les and Us e Ta x, $3,696,462 Other Ta xes , $86,724 Inter es t and other revenue, $410,818 The following is a graph of the Town’s governmental activities expenditures by function for 2018. General governmen t, $1,903,992 Cul ture a nd recreation, $33,452 Publ ic s afety, $518,480 Publ ic works , $1,802,336 Inter es t, $2,018 DRAFT B7 Government-wide Financial Analysis (continued) Business-type activities: Business-type activities (water and wastewater, collection and treatment) resulted in an increase in the Town’s net position of $153,204. Key elements of this change are as follows: Within the Water and Wastewater Funds and in the Town’s portion of the JFF assets, depreciation expense on capitalized assets of $845,005 accounted for 34%of total operating expenses. Charges for our customer’s water and wastewater services accounted for 96%of total operating revenues. The following is a graph of the business-type revenues by source for 2018. Cha rges f or servi ces , $1,839,077 Oper ating Gr ants & Contri butions , $12,861 Ca pi ta l Gr ants a nd Contri butions , $646,000 Inter es t and other revenue, $139,991 The following is a graph of the business-type expenses by function for 2018. Pers onnel , $586,573 Commodi ti es , $555,783 Contractual , $365,473 Sys tem development and other, $111,891 Depreciation, $845,005 Financial Analysis of the Town’s Funds As mentioned on page B2 of this analysis, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. DRAFT B8 Financial Analysis of the Town’s Funds (continued) Governmental funds: The focus of the Town’s governmental funds is to provide information on near- term inflows (revenues), outflows (expenditures), and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $4,966,486;the funds increased $367,018 from the prior year’s ending balances. The Town’s governmental fund balances for 2018 and the past two years are graphed as follows: $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2016 2017 2018 Ge nera l Fund Conservation Trust Fund Debt Service Fund Rest ricted Reven ue F und Capital Equipment Fund Proprietary funds: The Town’s proprietary funds (W ater and Wastewater Funds)provide the same type of information found in the government-wide financial statements, but in more detail. The proprietary funds’total cash is available for spending at the Town’s discretion. At the end of 2018 the Town Board reserved multiple amounts and designated them as committed reserves for emergencies in both our operations and maintenance and also for capital emergencies. Reserves are recognized in- house and are outlined earlier in this discussion. DRAFT B9 Budget Variances in the General Fund: The Town had the following significant budget variances which are detailed as follows: Pos. (Ne g.)Account Re ason Re ve nue s: 1,042,529$ Sales & use taxes Cons ervat ive budget ing due to various econom ic fac tors . 89,501 Liquor and ot her lic ense fee Marijuana ex cise and dispens ary fees have inc reas ed. (141,655) Planning and buil ding fees Lower hous ing start s. (1,028,206) Grant revenue Extens ions in federal projec ts delayed grant reimb. 70,217 Earnings on depos its Colot rus t interes t rates have increas ed. (799,228) Ot her revenue Extens ions in proj ec ts delayed grant matching. Ex pe ndi tu re s: Ge ne ra l Gove rnment: 199,120 To wn board comm enhanc .Communit y hous ing ex pendit ures res erved for future us e. 176,321 Ot her purc has ed servic es Purc hased servic es were les s than ex pec ted. Public Works 2,811,700 Capi tal out lay Expended less for street projec ts than budgeted. Capital assets: The Town’s government-wide capital assets, net of accumulated depreciation, decreased due largely to depreciation expense. Additional information as well as a detailed classification of the Town’s net capital assets can be found in the Notes to the Financial Statements on pages D15 and D16 of this report. Long-term obligations: As of the end of 2018, the Town had $186,946 in long-term obligations for accrued compensated absences. The Town entered into three new lease agreements for a vehicle and equipment in 2018. Additional information regarding the Town’s debt can be found on pages D17 –D18 of this report. Sales and Use Taxes: The Town has sales and use taxes that are used to fund its governmental operations. The Town’s sales and use taxes changed from a total of $3,583,910 in 2017 to $3,696,462 in 2018. The following chart indicates changes in the taxes collections: 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2016 2017 2018 1% R es trict ed Sa le s Tax Ge nera l Fund Use T ax Ge nera l Fund Sal es Tax The Town’s sales and use tax collections increased over the past years. Sales tax receipts increased 7% from 2017 to 2018 and the new 1% restricted sales tax generated $638,933. DRAFT B10 Next year’s budget and rates: The Town’s General Fund balance at the end of the current fiscal year was $4,453,396. The Town’s 2019 budget anticipates decreasing the General Fund balance by $2,588,507. It is anticipated that this budgeted reduction in fund balance will decrease by year end due to under spending budgeted amounts as well as surpassing revenue projections. Request for Information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Town of Fraser, Finance Manager, P.O. Box 120, Fraser, Colorado 80442-0120. DRAFT GOVERNMENT-WIDE FINANCIAL STATEMENTS DRAFT Governmental Business-type Activities Activities Total Assets: Cash and investments - Unrestricted 4,808,328 6,738,544 11,546,872 Cash with County Treasurer 2,830 3,456 6,286 Accounts, taxes, and interest receivables 881,629 1,201,581 2,083,210 Due from fiduciary fund - 554,666 554,666 Non-current notes receivable 44,250 - 44,250 Capital assets, net 8,502,122 18,843,310 27,345,432 Total Assets 14,239,159 27,341,557 41,580,716 Liabilities: Accounts payable 257,726 8,814 266,540 Due to fiduciary fund 71,634 - 71,634 Other liabilities 186,335 19,986 206,321 Due to other governments - 385,000 385,000 Accrued compensated absences 18,053 17,435 35,488 Non-current liabilities due within one year 37,142 - 37,142 Non-current liabilities due longer than one year 114,316 - 114,316 Total Liabilities 685,206 431,235 1,116,441 Deferred Inflows of Resources: Property taxes 254,157 - 254,157 Total Deferred Inflows of Resources 254,157 - 254,157 Net Position: Net investment in capital assets 8,350,664 18,843,310 27,193,974 Restricted 264,897 701,475 966,372 Unrestricted 4,781,063 7,373,309 12,154,372 Total Net Position 13,396,624 26,918,094 40,314,718 Town of Fraser, Colorado Statement of Net Position For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C1 DRAFT Operating Capital Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total Functions/Programs: Governmental activities: General government 1,903,992 231,736 98,552 16,178 (1,557,526) - (1,557,526) Culture and recreation 33,452 - - - (33,452) - (33,452) Public safety 518,480 - - - (518,480) - (518,480) Public works 1,802,336 - 60,258 - (1,742,078) - (1,742,078) Interest 2,018 - - - (2,018) - (2,018) Total governmental activities 4,260,278 231,736 158,810 16,178 (3,853,554) - (3,853,554) Business-type activities: Water 1,370,070 1,026,570 12,861 38,500 - (292,139) (292,139) Wastewater 1,094,655 812,507 - 607,500 - 325,352 325,352 Total business-type activities 2,464,725 1,839,077 12,861 646,000 - 33,213 33,213 Total 6,725,003 2,070,813 171,671 662,178 (3,853,554) 33,213 (3,820,341) General revenues: Taxes: Property tax 192,843 - 192,843 Specific ownership tax 13,763 - 13,763 General sales and use tax 3,696,462 - 3,696,462 Franchise tax 63,357 - 63,357 Other miscellaneous taxes 9,604 - 9,604 Investment earnings 93,226 139,991 233,217 Miscellaneous 317,592 - 317,592 Transfers to (from) 20,000 (20,000) - Total general revenues and transfers 4,406,847 119,991 4,526,838 Change in Net Position 553,293 153,204 706,497 Net Position - Beginning of Year 12,843,331 26,764,890 39,608,221 Net Position - End of Year 13,396,624 26,918,094 40,314,718 Program Revenues Net (Expense) Revenue and Town of Fraser, Colorado Statement of Activities For the Year Ended December 31, 2018 Changes in Net Position The accompanying notes are an integral part of these financial statements. C2 DRAFT FUND FINANCIAL STATEMENTS DRAFT Capital Total Debt Conservation Equipment Restricted Governmental General Service Trust Replacement Revenue Funds Assets: Cash and investments - Unrestricted 4,350,889 34,467 6,282 472,555 (55,865) 4,808,328 Cash with County Treasurer 2,830 - - - - 2,830 Receivables 10,779 - - - - 10,779 Due from other governments 499,035 - - 3,045 - 502,080 Due from other funds 62,007 - - - - 62,007 Taxes receivable 254,157 - - - 114,613 368,770 Total Assets 5,179,697 34,467 6,282 475,600 58,748 5,754,794 Liabilities and Fund Equity: Liabilities: Accounts/vouchers payable 367,192 - - - - 367,192 Due to other funds - - - - 62,007 62,007 Due to fiduciary fund 71,634 - - - - 71,634 Other liabilities 76,867 - - - - 76,867 Total Liabilities 515,693 - - - 62,007 577,700 Deferred Inflows of Resources: Property taxes 254,157 - - - - 254,157 Total Deferred Inflows of Resources 254,157 - - - - 254,157 Fund Balances: Nonspendable 10,779 - - - - 10,779 Spendable Restricted 258,615 - 6,282 - - 264,897 Committed 1,000,000 34,467 - - - 1,034,467 Assigned 2,588,507 - - 475,600 - 3,064,107 Unassigned 595,495 - - - (3,259) 592,236 Total Fund Balances 4,453,396 34,467 6,282 475,600 (3,259) 4,966,486 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,223,246 34,467 6,282 475,600 58,748 5,798,343 Town of Fraser, Colorado Balance Sheet Governmental Funds December 31, 2018 The accompanying notes are an integral part of these financial statements. C3 DRAFT Amounts reported for governmental activities in the Statement of Net Position are different because: Governmental Fund Balance 4,966,486 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.8,502,119 Long-term note receivables are not due and receivable in the current period and, therefore, are not reported in the funds.44,250 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.(169,511) Net Position of Governmental Activities 13,343,344 Town of Fraser, Colorado Reconciliation of Governmental Fund Balance to Governmental Activities Net Position December 31, 2018 The accompanying notes are an integral part of these financial statements. C4 DRAFT Capital Total Debt Conservation Equipment Restricted Governmental General Service Trust Replacement Revenue Funds Revenues: Taxes 3,337,096 - - - 638,933 3,976,029 Licenses and permits 171,341 - - - - 171,341 Charges for services 63,345 - - - - 63,345 Intergovernmental revenue 300,649 - 6,273 60,258 - 367,180 Investment income 82,217 700 413 8,396 1,500 93,226 Miscellaneous 106,272 - - - - 106,272 Total Revenues 4,060,920 700 6,686 68,654 640,433 4,777,393 Expenditures: General government 1,429,082 - - - 707,715 2,136,797 Public safety 518,480 - - - - 518,480 Public works 1,176,143 - - - - 1,176,143 Culture and recreation 8,589 - - - - 8,589 Debt service - - - 24,700 - 24,700 Capital outlay 485,300 - - 80,366 - 565,666 Total Expenditures 3,617,594 - - 105,066 707,715 4,430,375 Excess (Deficiency) of Revenues Over Expenditures 443,326 700 6,686 (36,412) (67,282) 347,018 Other Financing Sources (Uses): Transfers in (out)(95,000) - (25,000) 130,000 10,000 20,000 Total Other Financing Sources (Uses)(95,000) - (25,000) 130,000 10,000 20,000 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses)348,326 700 (18,314) 93,588 (57,282) 367,018 Fund Balances - Beginning of Year 4,105,070 33,767 24,596 382,012 54,023 4,599,468 Fund Balances - End of Year 4,453,396 34,467 6,282 475,600 (3,259) 4,966,486 Town of Fraser, Colorado Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C5 DRAFT Net Change in Fund Balances of Governmental Funds 367,018 Amounts reported for governmental activities in the Statement of Activities are different because: 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 as depreciation expense. This is the amount by which depreciation exceeded capital outlay, net of capital disposals during the year.93,400 Capital contributions are recognized as revenue in the Statement of Activities. This is the total amount contributed during the year.16,928 Revenues in the Statement of Activities from long-term note receivables that do not provide current resources are not reported in the funds. (750) Accrued liabilities for employees' sick and vacation are not an expenditure in the governmental funds, but are increases in long- term liabilities in the Statement of Net Position. This is the amount that accrued vacation not immediately payable decreased.735 Repayment of capital lease and bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the amount of principal repayments.22,682 Change in Net Position of Governmental Activities 500,013 Town of Fraser, Colorado Reconciliation of Net Change in Fund Balances to Change in Net Position of Governmental Activities For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C6 DRAFT Total Water Wastewater Enterprise Fund Fund Funds Assets: Current assets: Cash and cash equivalents 1,222,679 5,515,865 6,738,544 Utility receivables 225,823 188,274 414,097 Plant investment fee receivables 392,700 382,500 775,200 Other receivables - 12,284 12,284 Due (to) from fiduciary fund - 554,666 554,666 Due from other governments 2,095 1,361 3,456 Total Current Assets 1,843,297 6,654,950 8,498,247 Non-current assets: Land 100,000 144,320 244,320 Water rights 645,086 - 645,086 Equipment 353,994 108,789 462,783 Treatment plant and system 15,051,105 14,729,519 29,780,624 Less: Accumulated depreciation (5,950,411) (6,339,092) (12,289,503) Total Non-Current Assets 10,199,774 8,643,536 18,843,310 Total Assets 12,043,071 15,298,486 27,341,557 Liabilities and Fund Equity: Liabilities: Current liabilities: Due to other governments 385,000 - 385,000 Deposits payable 19,986 - 19,986 Total Current Liabilities 404,986 - 404,986 Non-current liabilities: Accrued compensated absences 6,342 11,093 17,435 Total Liabilities 411,328 11,093 422,421 Net Position: Net investment in capital assets 10,199,774 8,643,536 18,843,310 Restricted - 701,475 701,475 Unrestricted 1,431,969 5,942,382 7,374,351 Total Net Position 11,631,743 15,287,393 26,919,136 Town of Fraser, Colorado Statement of Net Position Enterprise Funds For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C7 DRAFT Total Enterprise Water Wastewater Funds Operating Revenues: Charges for services 954,697 812,507 1,767,204 Meter sales 71,873 - 71,873 Miscellaneous revenue 8,606 - 8,606 Total Operating Revenues 1,035,176 812,507 1,847,683 Operating Expenses: Personnel 292,727 293,845 586,572 Commodities 470,769 85,014 555,783 Contractual 138,600 226,874 365,474 System development 52,651 - 52,651 Other - 59,240 59,240 Depreciation 415,323 429,682 845,005 Total Operating Expenses 1,370,070 1,094,655 2,464,725 Operating Income (Loss)(334,894) (282,148) (617,042) Non-Operating Revenues: Grants 4,255 - 4,255 Interest revenue 32,974 108,059 141,033 Net Non-Operating Revenues 37,229 108,059 145,288 Income (Loss) before Contributions and Transfers (297,665) (174,089) (471,754) Capital contributions 38,500 607,500 646,000 Transfers (out)(10,000) (10,000) (20,000) Contributions and Transfers 28,500 597,500 626,000 Change in Net Position (269,165) 423,411 154,246 Net Position - Beginning of Year 11,900,908 14,863,982 26,764,890 Net Position - End of Year 11,631,743 15,287,393 26,919,136 Town of Fraser, Colorado Statement of Revenues, Expenses and Changes in Net Position Enterprise Funds For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C8 DRAFT Total Enterprise Water Wastewater Funds Cash Flows From Operating Activities: Cash received from customers 1,025,663 777,669 1,803,332 Other cash received 406 28,999 29,405 Cash received (paid) for deposits 2,091 123,653 125,744 Cash payments for goods and services (615,818) (371,127) (986,945) Cash payments for salaries and benefits (291,700) (292,583) (584,283) Net Cash Provided (Used) by Operating Activities 120,642 266,611 387,253 Cash Flows From Non-Capital and Related Financing Activities: Cash transferred to other funds (10,000) (10,000) (20,000) Cash received from grants and contributions 4,255 1,937 6,192 Net Cash Provided (Used) by Non-Capital and Related Financing Activities (5,745) (8,063) (13,808) Cash Flows From Capital and Related Financing Activities: Plant investment fees (paid) received (5,775) 564,373 558,598 Cash (paid) for assets (625,310) (178,777) (804,087) Net Cash Provided (Used) by Capital and Related Financing Activities (631,085) 385,596 (245,489) Cash Flows From Investing Activities: Interest 32,974 108,059 141,033 Net Cash Provided (Used) by Investing Activities 32,974 108,059 141,033 Net (Decrease) Increase in Cash and Cash Equivalents (483,214) 752,203 268,989 Cash and Cash Equivalents - Beginning of Year 1,705,893 4,697,314 6,403,207 Cash and Cash Equivalents - End of Year 1,222,679 5,449,517 6,672,196 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(334,894) (282,148) (617,042) Adjustments: Depreciation 415,323 429,682 845,005 (Increase) decrease in accounts receivable (9,108) 286 (8,822) (Increase) decrease in deposits receivable - 123,653 123,653 Increase (decrease) in accounts payable 46,200 - 46,200 Increase (decrease) in accrued compensated absences 1,030 1,263 2,293 Increase (decrease) in deposits payable 2,091 (6,125) (4,034) Total Adjustments 455,536 548,759 1,004,295 Net Cash Provided (Used) by Operating Activities 120,642 266,611 387,253 Town of Fraser, Colorado Statement of Cash Flows Enterprise Funds For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C9 DRAFT JFOC Fund Assets: Cash and cash equivalents 1,530,052 Accounts receivable, net:115,079 Total Assets 1,645,131 Liabilities: Accounts payable 67,869 Deposits 1,708,261 Total Liabilities 1,776,130 Town of Fraser, Colorado Statement of Fiduciary Assets and Liabilities December 31, 2018 The accompanying notes are an integral part of these financial statements. C10 DRAFT JFOC Fund Operating Revenues: Charges for operations and maintenance costs 518,974 Transfer in 208,170 Total Operating Revenues 727,144 Operating Expenses: Salaries and Wages 195,118 Employee Benefits 67,613 Purchased services 225,970 Supplies 37,429 Utilities 201,014 Total Operating Expenses 727,144 Change in Assets and Liabilities - Due to Others - Beginning - Due to Others - Ending - Town of Fraser, Colorado Statement of Changes in Fiduciary Assets and Liabilities For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. C11 DRAFT NOTES TO THE FINANCIAL STATEMENTS DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 D1 I.Summary of Significant Accounting Policies The Town of Fraser, Colorado (the "Town") is incorporated under Colorado statutes to provide public safety, streets and street maintenance, water and wastewater service, recreation including parks and trails, transportation, special events, planning and zoning, and general administrative services. The Town is located in Grand County and operates under a Council-Manager form of government. An elected Mayor and Town Board are responsible for setting policy, appointing administrative personnel and adopting an annual budget in accordance with state statutes. The Town’s major operations include road maintenance, water and wastewater service, public safety and culture and recreation. The Town’s financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”). The Governmental Accounting Standards Board (“GASB”) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established by GAAP and used by the Town are discussed below. A.Reporting Entity The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either 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 Town. Consideration is also given to other organizations that are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. Based upon the above criteria, the Town is not financially accountable for any other organization, nor is the Town a component unit of any other primary governmental entity. B.Government-wide and Fund Financial Statements The Town’s basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town’s major funds). Government-wide financial statements report on information of all of the activities of the Town. Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type. The Town’s public safety, public works, culture and recreation, and administration functions are classified as governmental activities. The Water Fund and W astewater Fund are classified as business-type activities. In the government-wide Statement of Net Position, the governmental activities columns are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Town’s net position are reported in three parts –Net investment in capital assets; Restricted net position; and Unrestricted net position. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D2 I.Summary of Significant Accounting Policies (continued) B.Government-wide and Fund Financial Statements (continued) The government-wide Statement of Activities reports both the gross and net cost of each of the Town’s governmental functions and business-type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the governmental function or a business-type activity. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants.The government-wide focus is on the sustainability of the Town as an entity and the change in the Town’s net position resulting from the current year’s activities. C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1.Long-term Economic Focus and Accrual Basis Both governmental and business-type activities in the government-wide financial statements and the proprietary fund financial statements use the long-term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. 2.Current Financial Focus and Modified Accrual Basis The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. “Available” means collectible within the current period or soon enough thereafter (60 days) to be used to pay liabilities of the current period. Expenditures are generally recognized when the related liability is incurred. The exception to this general rule is that principal and interest on general long-term debt and compensated absences are recorded only when payment is due. Franchise fees, licenses and interest associated with current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. Sales and excise taxes collected by vendors at year end on behalf of the Town are also recognized as revenue if collected within 30 days after year end. Expenditure driven grants are recognized as revenue when qualified expenditures have been incurred and all other grant requirements have been met. All other revenue items are considered to be measurable and available only when cash is received by the Town. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D3 I.Summary of Significant Accounting Policies (continued) C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 3.Financial Statement Presentation As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments where the amounts are reasonably equivalent to the value of the interfund services provided and other charges between the functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the water and wastewater functions. Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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 Town’s enterprise funds are the operation of the water and wastewater systems within the Town. Operating expenses for the enterprise funds includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. D.Fund Financial Statements The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self- balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues and expenditures/expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: General Fund The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term “proceeds of specific revenue sources” establishes that one or more specific restricted or committed revenues should be the foundation for a special revenue fund. The Conservation Trust Fund accounts for lottery proceeds required to be expended solely on park and recreation improvements. The Restricted Revenue Fund accounts for a dedicated sales tax to be used for transportation,trails, and capital project expenditures. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D4 I.Summary of Significant Accounting Policies (continued) D.Fund Financial Statements (continued) Capital Projects Funds Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments. The Capital Equipment Replacement Fund accounts for funds set aside for the purchase and replacement of capital equipment. A significant portion of revenues consists of highway user tax proceeds. Debt Service Funds Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures of principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds. The Debt Service Fund accounts for payments made on the Town’s bonded debt obligations. The Town reports the following proprietary or business-type funds: The Water Fund accounts for the purchase and delivery of water to the citizens of the Town. The Water Fund also maintains the infrastructure needed to provide water service. The Wastewater Fund accounts for the treatment of wastewater from the citizens of the Town. The Wastewater Fund also maintains the infrastructure needed to provide wastewater service. The Town reports the following fiduciary fund: The Joint Facilities Oversight Committee (“JFOC”) Operations Fund accounts for the operations of the Upper Fraser Valley W astewater Treatment Joint Facilities. E.Financial Statement Accounts 1.Cash and Cash Equivalents The Town pools deposits and investments of all funds except JFOC Operations Fund, which are held in separate accounts. Each fund’s share of the pool is readily identified by the Town’s internal records. Investments are stated at market value. Cash and cash equivalents include demand deposits, certificates of deposit, local government investment pools (COLOTRUST), and U.S. government-backed securities. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D5 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 1.Cash and Cash Equivalents (continued) Certain proceeds of debt issues, as well as certain resources set aside for their repayment, have been classified as restricted assets on the balance sheet because their use is limited by the applicable covenants. Restricted assets also include certain deposits that have been limited as to usage pursuant to escrow and similar agreements. The Town’s investment policy permits investments in the following type of obligations which corresponds with state statutes: U.S. Treasury Obligations (maximum maturity of 60 months) Federal Instrumentality Securities (maximum maturity of 60 months) FDIC-insured Certificates of Deposit (maximum maturity of 18 months) Corporate Bonds (maximum maturity of 36 months) Prime Commercial Paper (maximum maturity of 9 months) Eligible Bankers Acceptances Repurchase Agreements General Obligations and Revenue Obligations Local Government Investment Pools Money Market Mutual Funds 2.Receivables Receivables are reported net of an allowance for uncollectible accounts. 3.Long-term Notes Receivable In the government-wide financial statements, long-term notes receivables are reported as an asset. In the fund financial statements, the face amount is reported as a general government expense. 4.Property Taxes Property taxes are assessed in one year as a lien on the property, but not collected by the governmental units until the subsequent year. In accordance with generally accepted accounting principles, the assessed but uncollected property taxes have been recorded as a receivable and as deferred inflow of resources. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D6 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 5.Capital Assets Capital assets, which include land, buildings, equipment, vehicles, and infrastructure assets (only infrastructure acquired after January 1, 2002), are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. The Town defines capital assets as assets with an initial cost of $5,000 or more and an estimated useful life in excess of two years. Such assets are recorded at historical cost. Donated capital assets are recorded at estimated fair value at the date of donation. Capital outlay for projects is capitalized as projects are constructed. Interest incurred during the construction phase is capitalized as part of the value of the assets constructed in the business-type activities. Infrastructure, buildings, and equipment are depreciated using the straight-line method over the following estimated useful lives: Asse ts Ye ars Infrastructure 15 - 30 Buildings and improvement s 15 - 40 Di stribution systems 40 Equi pment and ve hicles 7 6.Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the obligated governmental fund. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government-wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB No. 16, Accounting for Compensated Absences,no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. 7.Restricted Assets Fees collected in lieu of park and open space and affordable housing impact fees are restricted as to their use by Town ordinances. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D7 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 8.Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The Town does not have any deferred outflows of resources at December 31, 2018. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element,deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town has only one type of item that qualifies for reporting in this category. Accordingly, the deferred inflow, property taxes,is deferred and recognized as an inflow of resources in the period that the amounts become available. 9.Categories and Classification of Fund Balance Governmental accounting standards establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications, include Non-spendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restriction placed upon fund balance. Fund Balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the general fund. The general fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. The Town of Fraser classifies governmental fund balances as follows: Non-spendable -includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual requirements. Spendable: Restricted –includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation. Committed –includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority which is the Town Board. Assigned –includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund Balance may be assigned by the Town or its management designee. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D8 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 9.Categories and Classification of Fund Balance (continued) Unassigned -includes residual positive fund balance within the General Fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. The Town may use restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Town might first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. 10.Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. 11. Deposits Deposits on the JFOC Operations Fund represent contributions made to the JFOC operations fund by Winter Park Ranch Water and Sanitation District (“W inter Park Ranch”) and Grand County Water and Sanitation District #1 (“Grand County #1”) and the Town (previously the Fraser Sanitation District)for operating and replacement costs relating to the combined wastewater treatment plant. These deposits are held for working capital and replacement costs during the time all members remain joint operators of the plant. F.Significant Accounting Policies 1.Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town’s management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 2.Proprietary Funds As required by GASB Statement No. 62, the Town has elected to follow all GASB pronouncements for its proprietary funds. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D9 I.Summary of Significant Accounting Policies (continued) F.Significant Accounting Policies (continued) 3.Credit Risk Receivables in the Town’s funds are primarily due from other governments. Management believes that the credit risk related to these receivables is minimal. 4.Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. II.Reconciliation of Government-wide and Fund Financial Statements A.Explanation of certain differences between the governmental fund Balance Sheet and the government-wide Statement of Net Position The governmental fund Balance Sheet includes reconciliation between fund balance - total governmental funds and net position of governmental activities as reported in the government-wide Statement of Net Position. One element of that reconciliation explains that “Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.” The $8,502,119 represents the book value of assets at December 31, 2018. Another element of that reconciliation states that “Long-term note receivables in governmental activities are not due and receivable in the current period and, therefore, are not reported in the funds” The $44,250 represents that long-term note receivable. The third element of that reconciliation states that "Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.” The $169,511 difference represent accrued compensated absences at year end. 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 change in fund balances of governmental funds and changes in net position of governmental activities as reported in the government-wide Statement of Activities. One element of that reconciliation explains that governmental funds report capital outlays as expenditures, but in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. The details of this reconciling amount are capital outlay of $710,950,less depreciation expense of $617,550, less the disposal of capital assets of $- during 2018. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D10 III.Stewardship, Compliance, and Accountability A.Budgetary Information 1.Budgetary Basis of Accounting The preparation Budgets are adopted on a basis consistent with generally accepted accounting principles, except for the proprietary funds. Annual appropriations are adopted for all funds. Expenditures may not legally exceed appropriations at the fund level. All appropriations lapse at year end. As required by Colorado Statutes, the Town followed the required timetable noted below in preparing, approving, and enacting its budget for 2018. (1)For the 2018 budget year, prior to August 25, 2017, the County Assessor sent to the Town an assessed valuation of all taxable property within the Town’s boundaries. (2)The Town Manager, or other qualified person appointed by the Board, submitted to the Board, on or before October 15, 2017, a recommended budget which detailed the necessary property taxes needed along with other available revenues to meet the Town’s operating requirements. (3)Prior to December 15, 2017, a public hearing was held for the budget, the Board certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget, and the Board adopted the proposed budget and an appropriating resolution that legally appropriated expenditures for the upcoming year. (4)After adoption of the budget resolution, the Town may make the following changes: a) it may transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of estimated revenues in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2017 were collected in 2018 and taxes certified in 2018 will be collected in 2019. Taxes are due on January 1st in the year of collection; however, they may be paid in either one installment (no later than April 30th) or two equal installments (not later than February 28th and June 15th) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16th. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D11 III.Stewardship, Compliance, and Accountability (continued) A.Budgetary Information (continued) 2.Excess of Expenditures over Appropriations For the year ended December 31, 2018, expenditures exceeded appropriations in the following funds. Ex pe nditure s in e xcess of Fund budge t Res tricted Revenue 207,715$ This may be a violation of Colorado budget law. B.TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights (“TABOR). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. The reserve is calculated at 3% of fiscal year spending. Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved $138,000. On April 4, 2000, the Town’s electorate approved the following: Without any increase in the property tax mill levy or the 4% sales and use tax rate, shall the Town of Fraser, Colorado, be authorized, in the year 2000 and each subsequent year thereafter, to collect, retain, and expend the full proceeds of the Town’s fees, taxes, non-federal grants and other revenues and to spend such revenues for debt service, municipal operations, capital projects, and any other lawful municipal purpose, notwithstanding any state of Colorado restrictions on revenues or spending, including the restrictions of Article X, Section 20 of the Colorado Constitution, the revenue limit in Section 29-1-301 of the Colorado Revised Statutes, or any other law. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, could require judicial interpretation. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D12 IV.Detailed Notes on All Funds A.Deposits and Investments The Town’s checking accounts are entirely covered by federal depository insurance (“FDIC”) or by collateral held under Colorado’s Public Deposit Protection Act (“PDPA”). The FDIC insures the first $250,000 of the Town’s deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. The carrying amount of the Town’s demand deposits were $798,409 at year end. Fair Value of Investments The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. At December 31, 2018, the Town had the following recurring fair value measurements: Inve st ments at Fair Value Total Leve l 1 Le ve l 2 Le ve l 3 Cas h with fiscal agent 6,286$ 6,286 - - Inve st ments Me asured at Net Asse t Value Colot rus t 12,278,515$ Fair Va lue Measurement Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. The Town had the following deposits and investments for all funds, with the following maturities December 31, 2018: Ma turities Type :Ra ti ng Ca rrying Am ount Le ss Tha n One Ye ar Le ss Tha n Fi ve Years Depos its: Cert ificat es of Depos it Not Rat ed 303,737$ 303,737 - Chec king Account s Not Rat ed 459,979$ 459,979 - Savi ngs Account s Not Rat ed 34,693$ 34,693 - Investment s: Cas h with fiscal agent 6,286 6,286 Inve stment Pools AAAm 12,278,515 12,278,515 - 13,083,210$ DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D13 IV.Detailed Notes on All Funds (continued) A.Deposits and Investments (continued) The investment pools represent investments in the Colorado Government Liquid Asset Trust (“COLOTRUST”)a 2a7-like pools. Pools are not covered by FDIC insurance or PDPA but are rated AAAm. The fair value of the pools is determined by the pools’share price. The Town has no regulatory oversight for the pools. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town coordinates its investment maturities to closely match cash flow needs and restricts the maximum investment term to less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk.Colorado statutes specify instruments in which local governments may invest, including: Obligations of the U.S. and certain U.S. governmental agency securities Certain international agency securities General obligation and revenue bonds for U.S. local governmental entities Bankers acceptances of certain banks Commercial paper Local government investment pools Written repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts The Town’s general investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D14 IV.Detailed Notes on All Funds (continued) B.Receivables Receivables as of year-end for the Town’s funds, including applicable allowances for uncollectible accounts, are as follows: Ca pita l Re st ricte d Ge nera l Eq uipment Re ve nue Total Re ce ivable s: Ta xes 254,157$ - 114,613 368,770 Account s 10,779 - - 10,779 Intergovernm ent al 499,035 3,045 - 502,080 Gros s rec eiva bles 763,971 3,045 114,613 881,629 Les s: allowance fo r unc ol lectible - - - - Net Receiva bles 763,971$ 3,045 114,613 881,629 Gove rnm enta l Funds Water Waste water Ope ra ti ons Ope ra ti ons Total Re ce ivables: Account s 618,523$ 570,774$ 1,189,297$ Ot her - 12,284 12,284$ Gros s rec eivables 618,523 583,058 1,201,581 Les s: allowanc e for uncollec tible - - - Net Receiva bles 618,523$ 583,058$ 1,201,581$ Governmental funds report deferred inflow of resources from property taxes in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The receivable is net of $254,157 of property taxes levied in 2018 but not available until 2019. C. Long-Term Note Receivable In August 2017, the Town entered into a grant and loan agreement with Crooked Creek Saloon. The total funds disbursed per the agreement totaled $85,000, of which $40,000 was given as a grant toward property improvements, and an additional $45,000 provided to the owner as a no-interest loan. The loan is due in installments of $750 monthly for five years commencing after the date of completion of the project. As of December 31, 2018, the project was completed and the Town received payments totaling $750 on the loan. The balance of the receivable at year end was $44,250. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D15 IV.Detailed Notes on All Funds (continued) D.Capital Assets Capital asset activity for the year ended December 31, 2018 was as follows: Be ginning En ding Ba lance Incre ases De cre ases Ba lance Gove rnmenta l acti vi ti es: Capit al assets, not being deprec iated: Land and improvem ent s 730,629$ - - 730,629 Cons truc tion in progres s - 135,041 - 135,041 To tal capit al assets, not being deprec iated 730,629 135,041 - 865,670 Capit al assets, being deprec iated: Infras truc ture 14,861,396 281,363 - 15,142,759 Buildings 1,183,052 267,910 - 1,450,962 Furniture and equipment 1,784,031 217,704 - 2,001,735 To tal capit al assets, being deprec iated 17,828,479 766,977 - 18,595,456 Les s accumulated deprec iation for: Infras truc ture (7,983,531) (486,971) - (8,470,502) Buildings (970,076) (38,356) - (1,008,432) Furniture and equipment (1,387,847) (92,223) - (1,480,070) To tal accumulated deprec iation (10,341,454) (617,550) - (10,959,004) To tal capit al assets, being deprec iated, net 7,487,025 149,427 - 7,636,452 Gove rnm enta l acti vi ti es ca pi ta l asse ts, net 8,217,654$ 284,468 - 8,502,122 DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D16 IV.Detailed Notes on All Funds (continued) D.Capital Assets (continued) Be ginning En ding Ba lance Incre ases De cre ases Ba lance Busi ne ss-type acti vi ti es: Capit al assets, not being deprec iated: Land 244,320$ - - 244,320 Water rights 19,776 - - 19,776 To tal capital assets, not being deprec iated 264,096 - - 264,096 Capit al assets, being depreciated: System and improvement s 23,274,317 (1) - 23,274,316 Buildings and improvements 6,393,880 - - 6,393,880 Equipment 462,783 - - 462,783 To tal capital assets, being deprec iated 30,130,980 (1) - 30,130,979 Les s accumulated deprec iation for: System and improvement s (8,899,250) 1 - (8,899,249) Buildings and improvements (2,267,889) - - (2,267,889) Equipment (277,361) - - (277,361) To tal accumulated deprec iation (11,444,500) 1 - (11,444,499) To tal capital assets, being deprec iated, net 18,686,480 - - 18,686,480 Busi ne ss-type acti vi ti es ca pita l asse ts, net 18,950,576$ - - 18,950,576 In accordance with generally accepted accounting principles, the Town has elected to report general government infrastructure assets prospectively. Therefore, only general government infrastructure assets acquired since January 1, 2002 are included in the Town’s financial statements. The Town had the following capital outlay and depreciation expense for the following functions: De pre ci ation Ca pita l Ex pense Outlay Governm ental ac tivit ies : General government 37,311$ 284,838 Public work s, including infras truc ture 555,377 617,180 Culture and rec reat ion 24,862 - Total gove rnmenta l acti vi ti es 617,550$ 902,018 Busines s-type activi ties: Water 415,322$ 625,309 Was tewat er 429,682 178,777 Total business-type a cti vi ti es 845,004$ 804,086 DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D17 IV.Detailed Notes on All Funds (continued) E.Interfund Receivables, Payables, and Transfers Transfers were as follows: In Out General 25,000$ (120,000) Cons ervation Tr us t - (25,000) Capital Equipment 130,000 - Res tricted Revenue 10,000 - Wastewat er - (10,000) Water - (10,000) 165,000$ (165,000) Transfers were to provide additional resources to meet the activities provided in each fund. F.Other Liabilities 1.Capital Leases In June 2018,the Town entered into a capital lease agreement for the purchase of a vehicle.The total amount financed was $66,278, with interest stated at 4.89% per annum. The lease requires annual payments of $14,551 through 2022. In August 2018, the Town entered into a capital lease agreement for the purchase of equipment. The total amount financed was $55,351 with interest stated at 5.36% per annum. The lease requires monthly payments of $1,284 through 2022. In October 2018, the Town entered into a capital lease agreement for the purchase of equipment. The total amount financed was $52,511 with interest stated at 6.43% per annum. The lease requires monthly payments of $1,244 through 2022. Minimum lease payments are as follows: Ye ar Principa l Interest Total 2019 37,142 7,737 44,879 2020 39,246 5,632 44,878 2021 41,472 3,407 44,879 2022 33,598 1,131 34,729 To tal 151,458$ 17,907 169,365 The net book value of the assets acquired through a capital lease as of December 31, 2018 are as follows: Cos t 174,140$ Les s: Accumulated Deprec iation (25,664) Ne t Book Va lue 148,476$ DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D18 IV.Detailed Notes on All Funds (continued) F.Other Liabilities (continued) 4.Accrued Compensated Absences Earned but unused vacation benefits amounted to $18,053 at December 31, 2018. All unused vacation benefits are recorded on the government-wide financial statements. 5.Schedule of Changes in Long-term Debt Ba lance Ba lance Due Within 1/1/18 Additi ons Re ductions 12/31/18 One Year Capital leas es -$ 174,140 (22,682) 151,458 37,142 Accrued compensat ed abs enc es 18,791 - (738) 18,053 - Total 18,791$ 174,140 (23,420) 169,511 37,142 G.Restricted Fund Balance The Town had the following restrictions on the fund balances at December 31, 2018: Ba lance Ba lance 1/1/18 Additi ons De leti ons 12/31/18 General Fund: Fees in lieu of Park 6,379$ - - 6,379 Affordable hous ing impac t fee 134,426 - - 134,426 Emergenc y res erves 130,000 8,000 - 138,000 Cons ervat ion Tr us t Fund 24,596 - (18,314) 6,282 Res tricted Revenue Fund 54,023 640,433 (694,456) - Wastewater Fund Operating reserve 49,042 1,042 - 50,084 Capital replacement res erve 638,089 51,737 (178,777) 511,049 1,036,555$ 701,212 (891,547) 846,220 The Town had $701,475 restricted in the Wastewater Fund for Upper Fraser Valley Wastewater Treatment Joint Facilities operating and capital replacement expenses. H.Committed Fund Balance The Town has the following commitments of the governmental fund balances at December 31, 2018: Ba la nce Ba lance 1/1/18 Additi ons De letions 12/31/18 General Fund: Res erve savi ngs 1,000,000$ - - 1,000,000 Debt Service Fund: Capi tal projec ts 33,767 700 - 34,467 1,033,767$ 700 - 1,034,467 DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D19 IV.Detailed Notes on All Funds (continued) I.Assigned Fund Balance The Town had the following assignments of the governmental fund balances at December 31, 2018: Ba lance Ba lance 1/1/18 Addi ti ons De leti ons 12/31/18 General Fund: Capital projec ts 70,422$ 32,225 - 102,647 Fut ure budget deficit 2,647,294 - (58,787) 2,588,507 Capi tal Equipment Replac ement : Capi tal proj ec ts 382,012 93,588 - 475,600 3,099,728$ 125,813 (58,787) 3,166,754 V.Other Information A.Joint Facilities Oversight Committee (“JFOC”) Operations Fund In 2002, the Fraser Sanitation District (the “District”), Winter Park Ranch, and Grand County #1 entered into an agreement to participate in the joint construction, maintenance, and operation of joint interceptor sewer lines and joint sewage treatment facilities. This new wastewater treatment plant has been constructed on the existing plant site of the District/Winter Park Ranch treatment facility and a new and/or expanded sewer trunk line from Grand County #1 will connect with the existing District/W inter Park Ranch interceptor line. Title of the new joint facilities will be allocated among these three members based on each member’s proportionate share of equivalent residential units to be serviced by the new plant. The District was dissolved into the Town effective December 31, 2009. Construction costs of these new facilities, excluding expenses relating to segment B of the joint trunk lines (“B-Line”) described below, are based on each member’s future share of equivalent residential units to be serviced by the new plant and are allocated as follows: Town –34.07% Winter Park Ranch –28.89% Grand County #1 –37.04% Under the Upper Fraser Valley W astewater Agreement, a Joint Facilities Oversight Committee (“JFOC”) was established to represent the three members regarding the construction, expansion, operations, management, and maintenance of the new joint facilities. The JFOC is comprised of a total of nine members, with each member having three members. The Town was appointed as the manager of the joint facilities for 2018. The JFOC may designate a new manager on an annual basis. In 2018, as approved by the JFOC, the Town earned $29,000 in management fees. Operations and maintenance costs will be allocated among the three members based on each member’s proportionate share of equivalent residential units currently serviced by the new plant. In addition, upon certification of the new joint facilities, this agreement requires the establishment of an operations and maintenance reserve fund equal to three months operations and maintenance costs and a capital replacement reserve fund, the amount which is determined by the JFOC. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D20 V.Other Information (continued) A.Joint Facilities Oversight Committee (“JFOC”) Operations Fund (continued) 1.Maryvale Village (Rendezvous) The District entered an agreement on May 9, 2000, with Maryvale Village, L.L.C., and several individuals (collectively referred to as the “Rendezvous”), Maryvale Commercial Metropolitan District, and Maryvale Residential Metropolitan District (these districts are collectively referred to as the “Maryvale Districts”) that permitted the inclusion of the Maryvale development within the District’s boundaries in order to receive sanitation services, in exchange for inclusion fees. Pursuant to this agreement, Rendezvous and the Maryvale Districts are responsible for the construction of sewer main extensions and related infrastructure from the existing District sewer main to the Maryvale development. These sewer main extensions and related infrastructure will ultimately be conveyed to the District at the time these projects are completed or begin to be used, whichever comes first, subject to the District’s acceptance of these assets. As of December 31, 2018,Maryvale development sewer mains and infrastructure had been conveyed to the District, and is presented as an asset on the Town’s financial statements. Per this agreement, in exchange for the District agreeing to oversize the new wastewater treatment plant described earlier, the Developer and Maryvale Districts agreed to cover the amount of any shortfall in the District’s CW RPDA loan payments by pre-purchasing tap fees. In addition, this agreement requires the Developer and Maryvale Districts to establish an escrow account in the amount of $160,000 to guarantee their compliance in the event of a default regarding their pre-purchase obligations. As of December 31, 2018, no prepaid tap fees have been required or made by the Developer and the Maryvale Districts. This guarantee was released in 2009. 2.Pre-Inclusion Agreement -Cornerstone The District entered an agreement on April 5, 2005, with Cornerstone W inter Park Holdings, L.L.C. (“Cornerstone”) that permits the inclusion of a portion of Cornerstone’s development within the District’s boundaries in order to receive sanitation services for inclusion fees. Cornerstone shall be responsible for constructing, payi ng for and installing all sewer lines and any related facilities within the property including all lines, manholes and mains.This infrastructure will ultimately be conveyed to the District at the time these projects are completed or begin to be used, whichever comes first, subject to the District’s acceptance of these assets. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D21 V.Other Information (continued) B.Retirement Plans –Defined Contribution Pension Plan –Section 401(a) The Town is a member of Colorado County Officials &Employees Retirement Association (“CCOERA”). COERA was established to provide retirement benefits to employees of Colorado local governments. As a member, the Town participates in the CCOERA retirement plan created in accordance with Internal Revenue Code Section 401(a) (the “401(a) Plan”), which is a defined contribution pension plan. Employees of the Town are required to participate in the 401(a) Plan after one full year of service. Each eligible employee is required to contribute 4% of gross wages to the 401(a) Plan. The Town matches employee contributions at the same rate and these matched dollars have a vesting period of 5 years. The Town is neither the trustee nor the administrator for the 401(a) Plan. The seven-member governing board of CCOERA makes all necessary rules and is responsible for administration of the funds in the 401(a) Plan. Benefits payable at retirement, death, termination, or other unforeseen circumstance are based on the accumulated account balance of each employee. Upon termination of service with the Town, any unvested amounts will be forfeited and may be used to pay plan expenses or Employer’s contributions to the 401(a) Plan. During 2018, the Town recognized $45,179 of expense under this plan. The Town has $0 of forfeitures included in the 2018 401(a) Plan expense. The Town had a liability of $3,584 due to the 401(a) Plan at December 31, 2018. The Town also participates in the CCOERA retirement plan created in accordance with Internal Revenue Code Section 457 (the “457 Plan”), which is a defined contribution plan. The plan permits employees to defer a portion of their salary until future years. All contributions to the 457 Plan and all income attributable to those amounts, property are to be held in trust for the exclusive benefit of the plan participants and their beneficiaries. Plan investment purchases are determined by the plan participant and therefore, the plan’s investment concentration varies between participants. The Town has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Town is neither the trustee nor the administrator for the plan. The seven-member governing board of CCOERA makes all necessary rules and is responsible for administration of the funds in the 401(a) Plan. Benefits payable at retirement, death, termination, or other unforeseen circumstance are based on the accumulated account balance of each employee. The Town did not recognize any pension expense related to this 457 Plan during 2018 and had no liability to the 457 Plan at December 31, 2018. D.Other Employee Benefits -Post Employment Health Care Benefits All Town employees covered by State continuation insurance may continue their health insurance due to a reduction in work hours or termination of employment (for reasons other than "gross misconduct") for up to 18 months after the occurrence of one of these events. Eligible dependents may continue coverage for up to 36 months. Employees who elect continued coverage must pay the Town for premiums from the termination date of coverage and monthly thereafter. No cost to the Town is recognized as employees reimburse 100% of their premium cost. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D22 V.Other Information (continued) E.Intergovernmental Agreements 1.Public Safety Services In lieu of directly providing public safety services, the Town has entered into an agreement with the Town of Winter Park, Colorado to form a joint public safety force effective May 1, 2005 and amended March 21, 2012. The agreement requires costs to be split 65% to W inter Park and 35% to Fraser, based upon average call volume, but reevaluated annually and may be amended as agreed upon by both parties. 2.Building Department The Town has entered into an agreement January 20, 2010 to form a joint building services department with the Town of Winter Park, Colorado and the Town of Granby, Colorado.According to the agreement, quarterly expenses are to be split based upon the portion of revenue collected for each Town, but may be adjusted annually by mutual agreement based on permits issued, inspections performed, time expended by personnel, vehicle depreciation and mileage and other measures. 3.Transportation Agreement The Town has entered into an agreement June 19, 2018 with the Town of Winter Park to provide transit services. The terms of the agreement automatically renew for 10 one-year periods unless either party provides written notice of nonrenewal on or before June 30th of the prior year. Pursuant to the agreement, the Town pays a monthly management fee equal to 10% of Winter Park’s management costs of the Transit System, as well as all operating costs incurred for the Town’s portion of the route. 4.Water Storage Agreement In 2018, the Town purchased 25 acre-feet of water rights at Grand County Water Storage Reservoir. Pursuant to the terms of the operating agreement, the Town of Fraser and the Town of Winter Park will split costs associated with Maintenance and Capital Reserves as needed by Grand County Water Storage Reservoir. F.Risk Management The Town is exposed to various risks of loss related to workers’ compensation, general liability, and worker unemployment. The Town has acquired commercial coverage for these risks. Any settled claims are not expected to exceed the commercial insurance coverage. The Town is also exposed to the risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. The Town is a member of the insurance pool described below to cover these risks. Pursuant to an inter-local agreement authorized by state statute, the Town joined the Colorado Intergovernmental Risk Sharing Agency (“CIRSA”) to provide insurance coverage. Members of the board of directors are nominated and elected by members to two-year, staggered terms and meet at least monthly to direct operations. CIRSA budgets are funded by contributions from member governments. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D23 V.Other Information (continued) F.Risk Management (continued) The Town's share of assets, liabilities and fund equity as of December 31, 2016, the latest date for which information is available, is as follows: Insu ra nce Pools:Fra se r Sha re Propert y and Cas ualty Pool: Los s fund 26,704$ Operat ing 11,697 Pooled ex cess fund 5,691 Res erve fund 19,797 Work ers ' Compensation Pool: Los s fund 23,421 Operat ing 2,106 Pooled ex cess fund 14,433 Res erve fund 15,248 The December 31, 2017 combined financial information is as follows: Cas h and inves tment s 79,928,631$ Ot her as sets 7,839,652 Total 87,768,283 Liabilit ies 33,977,576 Net assets 53,790,707 Total 87,768,283 To tal revenue 26,784,613 To tal ex pens e (23,649,283) (De fi ci ency) of Re ve nue Ove r Ex pe nse 3,135,330 Coverage provided by CIRSA is as follows: 1) $250,000 per claim/occurrence property; 2) $1,000,000 per claim/occurrence liability; and 3) $150,000 per claim/occurrence crime. CIRSA has also acquired additional excess coverage from outside sources. The Town may be liable for any losses in excess of the above coverage. At December 31, 2018, the Town does not expect to incur losses in excess of the above coverage. Surpluses or deficits for any year are subject to change for reasons which include: interest earnings on invested amounts for those years and funds, re-estimation of losses for those years and funds, and credits or distributions from surplus for those years and funds. DRAFT Town of Fraser Notes to the Financial Statements December 31, 2018 (Continued) D24 V.Other Information (continued) G.Related Party Transactions During 2018, a third-party vendor controlled by the son of a board member for the Town of Fraser provided road construction services totaling $431,294. H.Tax Abatements 1.Fraser Still Project The Town has entered into an Agreement for Certain Economic Inducements and Incentives in order to meet development goals within certain areas of the Town. According to the agreement, the development area Fraser Still Project has the following continuing development requirements or abatement agreements requiring disclosure: Re ve nue s impacte d Am ount Re quire ments Permit and review fees Rebate of $1.00 per square foot of new usable commerc ial spac e cons truc ted Paid to owner Sales tax 100% for fi ve years from date of CO issuance, 50% of sales tax for 5 additional years thereafter Paid to owner Us e tax 100% of the building and cons truc tion use tax Paid to owner Ad valorem real and pers onal property taxes 100% for the tax year prec eeding the date of CO issuance and four years thereaft er Paid to owner Plant inve stment fees Due in three annual installment s without interes t one year after the date of CO issuanc e Paid to owner Service fees Waived unt il the earlier of issuance of CO, or November 7, 2020 Paid to owner In exchange to the above tax abatements, the owner agrees to develop and run a retail business on the property.During the year ended December 31, 2018, the total reduction in tax revenues for the Town totaled . 2.Prepaid Plant Investment Fees The Town also entered into annexation agreements with two developers that provided for the use of Plant Investment Fees to fund water system capital improvements within the developments. The agreements essentially provide that the Town will not retain Plant Investment Fees paid by building permit applicants within these developments until such time as the total Plant Investment Fees paid exceeds the certified costs of regional water capital improvements within the developments. Currently the developers have certified water regional infrastructure improvements totaling $6,266,976 and a total of $4,228,593 of Plant Investment Fees have been rebated to the developers. The above agreements were authorized by the Town Board after analyzing criteria that includes the ability to encourage development within the specific abatement area. I.Fund Balance Deficit At December 31, 2018, the Town’s Restricted Revenue Fund had a deficit ending fund balance of $3,259. DRAFT REQUIRED SUPPLEMENTARY INFORMATION DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Taxes 2,279,250 3,337,096 1,057,846 3,282,213 Licenses and fees 75,720 171,341 95,621 147,883 Charges for services 205,000 63,345 (141,655) 4,385 Intergovernmental 1,328,855 300,649 (1,028,206) 30,065 Interest 12,000 82,217 70,217 40,916 Other revenue 905,500 106,272 (799,228) 78,881 Total Revenues 4,806,325 4,060,920 (745,405) 3,584,343 Expenditures: General government 1,843,375 1,429,082 414,293 1,184,472 Public safety 525,000 518,480 6,520 476,613 Public works 4,576,700 1,661,443 2,915,257 1,024,995 Culture and recreation 13,544 8,589 4,955 9,600 Debt service - - - 343,733 Total Expenditures 6,958,619 3,617,594 3,341,025 3,039,413 Excess (Deficiency) of Revenues Over Expenditures (2,152,294) 443,326 2,595,620 544,930 Other Financing Sources (Uses): Transfer in 160,426 25,000 (135,426) - Transfer (out)(120,000) (120,000) - (100,000) Sale of assets - - - 226,700 Total Other Financing (Uses)40,426 (95,000) (135,426) 126,700 Excess (Deficiency) of Revenues Over Expenditures and Other Financing Sources (Uses)(2,111,868) 348,326 2,460,194 671,630 Fund Balances - Beginning of Year 3,060,691 4,105,070 1,044,379 3,433,440 Fund Balances - End of Year 948,823 4,453,396 3,504,573 4,105,070 2018 Town of Fraser, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) The accompanying notes are an integral part of these financial statements. E1 DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Taxes: Property 190,000 192,843 2,843 209,388 Specific ownership 11,500 13,763 2,263 14,835 Sales & use 2,015,000 3,057,529 1,042,529 2,987,804 Franchise 55,000 63,357 8,357 60,217 Motor vehicle 4,250 4,564 314 5,002 Cigarette 3,500 5,040 1,540 4,967 Total 2,279,250 3,337,096 1,057,846 3,282,213 Licenses and Fees: Business license fees 10,720 16,840 6,120 12,980 Regulated Industry fees 65,000 154,501 89,501 134,903 Total 75,720 171,341 95,621 147,883 Charges for services: Planning and building fees 205,000 63,345 (141,655) 4,385 Total 205,000 63,345 (141,655) 4,385 Intergovernmental: Grant revenue 1,328,855 300,649 (1,028,206) 30,065 Total 1,328,855 300,649 (1,028,206) 30,065 Interest: Earnings on deposits 12,000 82,217 70,217 40,916 Total 12,000 82,217 70,217 40,916 Other: Other income 890,000 95,602 (794,398) 61,601 Rents 15,500 10,670 (4,830) 17,280 Total 905,500 106,272 (799,228) 78,881 Other Financing Sources: Transfer in 160,426 25,000 (135,426) - Sale of assets - - - 226,700 Total 160,426 25,000 (135,426) 226,700 Total Revenues 4,966,751 4,085,920 (880,831) 3,811,043 2018 Town of Fraser, Colorado General Fund Schedule of Revenues Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) The accompanying notes are an integral part of these financial statements. E2 DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual General Government: Town board salaries 74,825 36,952 37,873 44,468 Town board community enhancement 640,750 441,630 199,120 229,739 Miscellaneous 10,000 8,094 1,906 735 Administrative salaries 450,500 465,425 (14,925) 396,645 Other purchased services 577,800 401,479 176,321 419,822 Utilities 23,000 21,484 1,516 16,822 Property management 66,500 52,780 13,720 76,028 Fiscal agent salaries - 1,238 (1,238) 213 Total General Government 1,843,375 1,429,082 414,293 1,184,472 Public Safety 525,000 518,480 6,520 476,613 Total Public Safety 525,000 518,480 6,520 476,613 Public Works Salaries and benefits 673,500 628,417 45,083 519,435 Other purchased services 386,700 372,511 14,189 215,786 Utilities 15,000 13,091 1,909 12,373 Property management 204,500 162,124 42,376 99,708 Capital outlay 3,297,000 485,300 2,811,700 177,693 Total Public Works 4,576,700 1,661,443 2,915,257 1,024,995 Culture and Recreation Other purchased services 6,120 4,881 1,239 5,379 Utilities 2,424 2,150 274 1,905 Property management 5,000 1,558 3,442 2,316 Total Culture and Recreation 13,544 8,589 4,955 9,600 Debt Services Interest - - - 9,406 Principal - - - 334,327 Total Debt Services - - - 343,733 Other Financing Uses Transfer out 120,000 120,000 - 100,000 Total Financing Sources 120,000 120,000 - 100,000 Total Expenditures 7,078,619 3,737,594 3,341,025 3,139,413 2018 Town of Fraser, Colorado General Fund Schedule of Expenditures and Transfers Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) The accompanying notes are an integral part of these financial statements. E3 DRAFT Conservation Trust Fund 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Lottery proceeds 6,600 6,273 (327) 5,792 Interest 75 413 338 232 Total Revenues 6,675 6,686 11 6,024 Other Financing Uses Transfer (Out)(25,000) (25,000) - - Total Financing Sources (25,000) (25,000) - - Excess (Deficiency) of Revenues Over Expenditures (18,325) (18,314) 11 6,024 Fund Balances - Beginning of Year 24,722 24,596 (126) 18,572 Fund Balances - End of Year 6,397 6,282 (115) 24,596 Schedule of Revenues, Expenditures and Changes in Fund Balances Special Revenue Fund Town of Fraser, Colorado 2018 For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) Budget (GAAP Basis) and Actual The accompanying notes are an integral part of these financial statements. E4 DRAFT Restricted Revenue Fund 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Taxes 462,500 638,933 176,433 596,106 Interest 303 1,500 1,197 414 Total Revenues 462,803 640,433 177,630 596,520 Expenditures: General government Transportation 500,000 706,495 (206,495) 548,486 Trails - 1,220 (1,220) - Total Expenditures 500,000 707,715 (207,715) 548,486 Excess (Deficiency) of Revenues Over Expenditures (37,197) (67,282) (30,085) 48,034 Other Financing Sources (Uses): Transfer in 10,000 10,000 - - Total Other Financing (Uses)10,000 10,000 - - Excess (Deficiency) of Revenues Over Expenditures and Other Financing Sources (Uses)(27,197) (57,282) (30,085) 48,034 Fund Balances - Beginning of Year 28,523 54,023 25,500 5,989 Fund Balances - End of Year 1,326 (3,259) (4,585) 54,023 2018 Town of Fraser, Colorado Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) The accompanying notes are an integral part of these financial statements. E5 DRAFT SUPPLEMENTARY INFORMATION DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Interest - 700 700 2,146 Total Revenues - 700 700 2,146 Expenditures: Principal - - - 440,000 Interest - - - 11,910 Total Expenditures - - - 451,910 Excess (Deficiency) of Revenues Over Expenditures - 700 700 (449,764) Fund Balances - Beginning of Year - 33,767 33,767 483,531 Fund Balances - End of Year - 34,467 34,467 33,767 Schedule of Revenues, Expenditures and Changes in Fund Balances Debt Service Fund Town of Fraser, Colorado 2018 For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) Budget (GAAP Basis) and Actual The accompanying notes are an integral part of these financial statements. F1 DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Highway users revenue 46,460 60,258 13,798 47,065 Earnings on investments 2,500 8,396 5,896 5,533 Total Revenues 48,960 68,654 19,694 52,598 Expenditures: Capital lease - 24,700 (24,700) 45,418 Equipment 525,000 80,366 444,634 218,040 Total Expenditures 525,000 105,066 419,934 263,458 Excess (Deficiency) of Revenues Over Expenditures (476,040) (36,412) 439,628 (210,860) Other Financing Sources: Transfer In 130,000 130,000 - 120,000 Total Other Financing Sources 130,000 130,000 - 120,000 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures (346,040) 93,588 439,628 (90,860) Fund Balances - Beginning of Year 356,954 382,012 25,058 472,872 Fund Balances - End of Year 10,914 475,600 464,686 382,012 Capital Equipment Replacement Fund Town of Fraser, Colorado (With Comparative Actual Amounts for 2017) 2018 For the Year Ended December 31, 2018 Budget (GAAP Basis) and Actual Schedule of Revenues, Expenditures and Changes in Fund Balances The accompanying notes are an integral part of these financial statements. F2 DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Tap fees 7,700 38,500 30,800 32,325 User fees 948,575 954,697 6,122 901,513 Water meter fees 10,000 71,873 61,873 85,157 Interest income 6,000 32,974 26,974 20,162 Excavation permits 275 1,925 1,650 3,800 Grants - 4,255 4,255 - Other 2,500 6,681 4,181 12,764 Total Revenues 975,050 1,110,905 135,855 1,055,721 Expenditures: Personnel: Salaries 215,600 234,283 (18,683) 212,408 Retirement 8,000 7,432 568 5,721 Health insurance 48,000 48,897 (897) 34,751 Travel and training 8,000 2,115 5,885 196 Total 279,600 292,727 (13,127) 253,076 Commodities: Insurance 22,000 13,328 8,672 13,801 Supplies 92,500 107,856 (15,356) 79,217 System repair and maintenance 136,500 294,528 (158,028) 39,258 Testing 5,000 3,146 1,854 5,915 Telephone 4,500 5,027 (527) 4,321 Utilities 45,000 44,433 567 37,357 Miscellaneous 17,000 2,451 14,549 594 Total 322,500 470,769 (148,269) 180,463 Contractual: Legal 65,000 62,091 2,909 56,458 Engineering 30,000 61,744 (31,744) 52,749 Other professional services 25,500 9,448 16,052 4,217 Professional memberships 9,500 5,317 4,183 5,555 Total 130,000 138,600 (8,600) 118,979 Other: Transfer to Other Fund 10,000 10,000 - 10,000 Capital projects and purchases 1,200,000 645,491 554,509 276,949 Water rights 35,000 32,470 2,530 14,654 Total 1,245,000 687,961 557,039 301,603 Total Expenditures 1,977,100 1,590,057 387,043 854,121 Excess (Deficiency) of Revenues Over Expenses (Budget Basis)(1,002,050) (479,152) 522,898 201,600 Reconciliation from Budget Basis to GAAP Basis: Capitalized assets 625,310 276,949 Depreciation (415,323) (411,860) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis)(269,165) 66,689 Net Position - Beginning of Year 11,900,908 11,834,219 Net Position - End of Year 11,631,743 11,900,908 2018 Town of Fraser, Colorado Enterprise Fund Water Fund Schedule of Revenues, Expenditures and Change in Net Position Budget (Non-GAAP) Basis and Actual With Reconciliation to GAAP Basis (With Comparative Actual Amounts for 2017) For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F3 DRAFT 2017 Original and Variance Final Positive Budget Actual (Negative)Actual Revenues: Tap fees 90,000 607,500 517,500 797,275 User fees 774,806 783,507 8,701 742,774 Management fees 29,000 29,000 - 29,000 Interest income 18,500 108,059 89,559 49,684 Total Revenues 912,306 1,528,066 615,760 1,618,733 Expenditures: Personnel: Salaries 221,700 236,606 (14,906) 217,058 Retirement 8,100 7,435 665 5,465 Health insurance 50,000 49,239 761 35,547 Travel and training 7,000 565 6,435 6 Total 286,800 293,845 (7,045) 258,076 Commodities: Insurance 6,500 8,785 (2,285) 9,245 Supplies 2,500 1,935 565 1,115 System repair and maintenance 410,000 71,518 338,482 59,930 Testing 1,000 - 1,000 - Telephone 2,000 2,194 (194) 1,690 Miscellaneous 2,000 582 1,418 259 Total 424,000 85,014 338,986 72,239 Contractual: Legal 5,000 - 5,000 - Engineering 10,000 2,561 7,439 438 Other professional services 259,000 219,356 39,644 202,366 Treasurer's and bank fees 100 - 100 - Professional memberships 5,500 4,957 543 5,011 Total 279,600 226,874 52,726 207,815 Other: Transfer to Other Fund 10,000 10,000 - 10,000 Capital Reserve payments 306,630 - 306,630 - Total 316,630 10,000 306,630 10,000 Total Expenditures 1,307,030 615,733 691,297 548,130 Excess (Deficiency) of Revenues Over Expenses (Budget Basis)(394,724) 912,333 1,307,057 1,070,603 Reconciliation from Budget Basis to GAAP Basis: Depreciation (429,682) (441,400) Capitalized capital reserve payments (59,240) (15,441) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis)423,411 613,762 Net Position - Beginning of Year 14,863,982 14,250,220 Net Position - End of Year 15,287,393 14,863,982 For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) 2018 Town of Fraser, Colorado Enterprise Fund Wastewater Fund Schedule of Revenues, Expenditures and Change in Net Position Budget (Non-GAAP) Basis and Actual With Reconciliation to GAAP Basis The accompanying notes are an integral part of these financial statements. F4 DRAFT 2017 Final Budget Original and Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Other revenue - - 3,480 3,480 8,648 JFOC operating charges 874,239 874,239 727,144 (147,095) 698,196 JFOC capital reserve contributions 0 0 - 0 Interest revenue 14,350 14,350 21,123 6,773 14,771 Total Revenues 888,589 888,589 751,747 (136,842) 721,615 Expenses: Training programs 2,000 2,000 560 1,440 450 Travel, meals and lodging 2,500 2,500 1,058 1,442 746 Meals and entertainment 250 250 108 142 90 Professional fees 8,250 8,250 210,494 (202,244) 71,527 Engineering fees 10,000 10,000 - 10,000 2,888 Sludge removal 60,000 60,000 59,725 275 56,475 Other professional services 10,000 10,000 3,656 6,344 4,503 Insurance 36,000 36,000 33,251 2,749 29,922 Advertising 500 500 - 500 - Plant maintenance & repair 50,000 50,000 15,274 34,726 23,592 Grounds maintenance 1,000 1,000 81 919 555 Equipment rental 500 500 7 493 - Professional memberships 500 500 - 500 - Operating supplies 60,000 60,000 37,470 22,530 32,898 Equipment purchase and repair 10,000 10,000 21,790 (11,790) 28,647 Testing 50,000 50,000 59,855 (9,855) 53,377 Permits 10,000 10,000 - 10,000 - Utilities 232,350 232,350 201,014 31,336 201,218 Vehicles 7,500 7,500 10,439 (2,939) 4,843 Miscellaneous 1,500 1,500 3,588 (2,088) 750 Capital projects 2,425,000 2,425,000 330,775 2,094,225 - Payroll expenses 321,390 321,390 262,731 58,659 250,509 Total Expenses 3,299,240 3,299,240 1,251,876 2,047,364 762,990 Excess (Deficiency) of Revenues Over Expenses (Budget Basis)(2,410,651) (2,410,651) (500,129) 1,910,522 (41,375) Reconciliation from Budget Basis to GAAP Basis: Capital reserve reduced by capital expenses 524,732 64,794 Capital reserve increased by contributions 0 - Capital reserve increased by interest income (20,854) (14,474) Capital reserve increased by other income (3,480) (8,648) Operating reserve increased by interest income (269) (297) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis)- - JFOC Operations Schedule of Revenues & Expenses ` Town of Fraser, Colorado For the Year Ended December 31, 2018 (With Comparative Actual Amounts for 2017) Budget (Non-GAAP) Basis and Actual With Reconciliation to GAAP Basis The accompanying notes are an integral part of these financial statements. F5 DRAFT Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36 City or County: Town of Fraser, Colorado YEAR ENDING : December 2018 This Information From The Records Of (example - City of _ or County of _):Prepared By: Beth Williams Town of Fraser, Colorado Phone: 970-726-5491 ext 206 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)377,570 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:307,454 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 16,527 2. General fund appropriations 1,579,424 b. Snow and ice removal 483,143 3. Other local imposts (from page 2)138,854 c. Other 0 4. Miscellaneous local receipts (from page 2)7,918 d. Total (a. through c.)499,670 5. Transfers from toll facilities 0 4. General administration & miscellaneous 87,844 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 518,480 a. Bonds - Original Issues 0 6. Total (1 through 5)1,791,018 b. Bonds - Refunding Issues 0 B. Debt service on local obligations: c. Notes 0 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 0 7. Total (1 through 6)1,726,196 b. Redemption 0 B. Private Contributions 0 c. Total (a. + b.)0 C. Receipts from State government 2. Notes: (from page 2)64,822 a. Interest 0 D. Receipts from Federal Government b. Redemption 0 (from page 2)0 c. Total (a. + b.)0 E. Total receipts (A.7 + B + C + D)1,791,018 3. Total (1.c + 2.c)0 C. Payments to State for highways 0 D. Payments to toll facilities 0 E. Total disbursements (A.6 + B.3 + C + D)1,791,018 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)0 0 0 0 1. Bonds (Refunding Portion)0 0 B. Notes (Total)0 0 0 0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 1,791,018 1,791,018 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) F6 LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM AND STREET PURPOSES DRAFT STATE: Colorado YEAR ENDING (mm/yy): December 2018 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 0 a. Interest on investments 700 b. Other local imposts: b. Traffic Fines & Penalities 0 1. Sales Taxes 125,091 c. Parking Garage Fees 0 2. Infrastructure & Impact Fees 0 d. Parking Meter Fees 0 3. Liens 0 e. Sale of Surplus Property 0 4. Licenses 0 f. Charges for Services 0 5. Specific Ownership &/or Other 13,763 g. Other Misc. Receipts 7,219 6. Total (1. through 5.)138,854 h. Other 0 c. Total (a. + b.)138,854 i. Total (a. through h.)7,919 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 60,258 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 4,564 d. Federal Transit Admin d. Other (CDOT RAMP Project)0 e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)4,564 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)64,822 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a)(b)(c) A.1. Capital outlay: a. Right-Of-Way Costs 0 0 0 b. Engineering Costs 137,041 125,195 262,236 c. Construction: (1). New Facilities 0 0 0 (2). Capacity Improvements 0 0 0 (3). System Preservation 0 86,051 86,051 (4). System Enhancement & Operation 0 29,283 29,283 (5). Total Construction (1) + (2) + (3) + (4)0 115,334 115,334 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)137,041 240,529 377,570 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE F7 III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM DRAFT TOWN OF FRASER RESOLUTION NO. 2019-07-07 A RESOLUTION AUTHORIZING AN TERGOVERNMENTAL AGREEMENT WITH GRAND COUNTY FOR THE COUNTY ROAD 8 BRIDGE REPLACEMENT PROJECT. WHEREAS, the 2019 Budget provides for certain capital projects; and WHEREAS, the Town of Fraser and Grand County have entered into an intergovernmental agreement (IGA) regarding streets maintenance which provides that capital expenditures necessary for long term maintenance on County Road 8 will be shared proportionally based on average daily trips of vehicular traffic as mutually agreed in a further intergovernmental agreement specific to the project. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT: 1.The Mayor is authorized to execute and IGA with Grand County as provided by the current streets IGA providing for shared costs of the CR8 Bridge Project based on the most recent traffic counts (12,000 at the bridge and 7,000 east of the town boundary). READ,PASSED ON ROLL CALL VOTE,AND ADOPTED BY THE BOARD OF TRUSTEES THIS ____ DAY OF ________, 2019. Votes in favor: ___ BOARD OF TRU Votes in favor: ___BOARD OF TRUSTEES OF THE Votes opposed: ___TOWN OF FRASER, COLORADO Abstained: ___ BY: Mayor ATTEST: (S E A L) Town Clerk TOWN OF FRASER BOARD OF TRUSTEE AGENDA ITEM Board Meeting Date: July 17, 2019 SUBJECT: CONSENT AGENDA Consider a resolution to fund the water quality and permitting portion of reconstruction and start up of Well 8, Fraser Well Field, in the amount of $22,965. DEPARTMENT:Public Works PRESENTER/PREPARER:Russell Pennington, Public Works Director Adam Cwiklin, Water and Wastewater Superintendent FISCAL INFORMATION: Cost as Recommended:$27,500 Balance Available:$350,000 Fund:Capital Improvement Projects Budget Line Item Number: 50-40-730 New Appropriation Required:NO STAFF RECOMMENDATION: Staff is recommending a motion to approve Resolution No. 2019-07-06 authorizing the appropriate Town staff to contract with HRS Water Consultants for well 8 hydrological analysis and permitting services using the Capital Improvement Projects (50-40-730) of the 2019 Water Fund in an amount not to exceed a cumulative total of $27,500. SUMMARY AND BACKGROUND OF SUBJECT MATTER: Fraser Well 8 was originally constructed as a test well in 1984.It was drilled deeper in 1986 with the intention of transitioning it into a production well.The well has since been categorized inactive by the State. Currently,Fraser is growing and the town’s water system needs to,at a minimum,keep pace. Additional diversions (wells)are and will be needed to meet the towns growing demand.Well 8 is drilled and the well house is constructed.The well lacks the hardware,controls, communications,and permission to operate.Reconstruction of Well 8 is the most efficient and cost-effective immediate way to bolster Fraser’s water production. Staff has engaged HRS Water Consultants,Browns Hill engineering,and Hydro Resources to bring the well online. 1.HRS Water Consultants, Inc. is providing hydrological analysis and permitting services. Scope of Work: a)CDPHE submittal b)Well video review c)24-hour pump test, water quality analysis, and reporting 2.Brown’s Hill is providing well controls and communications design and install for the project. Approved by Board of Trustees on 3/20/19. 3.Hydro Resources will provide pumping hardware and well house plumbing.Staff expects to approach the Board to fund the last component of the project this year as it becomes more clearly defined. Staff anticipated a contract of approximately $27,500 Project Schedule Notice of Award July 17, 2019 Notice to Proceed End of July, 2019 Improvements Complete August 2019 The engineer’s estimate for the project is $22,965.00. The project funding includes contingency amounts for a total of $25,000.00 which can be used towards unforeseen changes during installation and programing. Staff is recommending motion to approve Resolution No. 2019-07-06 authorizing the appropriate Town staff to contract with HRS Water Consultants for hydrological analysis and permitting services using the Capital Improvement Projects (50-40-730) of the 2019 Water Fund in an amount not to exceed a cumulative total of $27,500. TOWN OF FRASER RESOLUTION NO. 2019-07-06 A RESOLUTION AUTHORIZING THE EXPENDITURE FOR THE RECONSTRUCTION AND CONNECTION OF WELL 8 . WHEREAS, the 2019 Budget provides for certain water system projects. THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT: 1.The Town Board of Fraser, Colorado hereby authorizes the Town Manager to expend up to $27,500 for HRS Water Consultants, Inc. to provide hydrological analysis and permitting services 2.Said purchases must be completed by the end of the year 2019 or the approval will no longer be effective. READ,PASSED ON ROLL CALL VOTE,AND ADOPTED BY THE BOARD OF TRUSTEES THIS 17th DAY OF July, 2019. Votes in favor: ___ BOARD OF TRU Votes in favor: ___BOARD OF TRUSTEES OF THE Votes opposed: ___TOWN OF FRASER, COLORADO Abstained: ___ BY: Mayor ATTEST: (S E A L) Town Clerk