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HomeMy Public PortalAboutTBP 2015-04-15Town Board Briefing April 15, 2015 Please note that members of the Town Board will have dinner together starting at 5:30pm. The Board will be having a workshop discussion with the Town's Financial Auditor between 6:00pm and 7:00pm. This is intended to provide the Board with ample time to discuss the audit process, the report, or other related matters. The 2014 Audit is being presented as a draft at this time pending the outcome of this discussion. The first discussion matter will be formal presentation of the 2014 Audit to the Town Board. After this discussion concludes, staff would recommend a motion to accept the 2014 Audit. As you will note in the Audit, our Auditors have recommended that we amend the signature cards related to our checking accounts such that the only signatures would be the Town Manager and Mayor. In order to implement that recommendation, we have provided a resolution for your consideration. The Bank will need confirmation in this form to remove any signatures from the accounts. Resolution 2015-03-03 would provide authorization for the Town Manager to enter into a contract for Geotech services necessary for the Fraser US Highway 40 Project. This would be coordinated as part of the Project Engineer services that Bowman Land is providing for the project. Requests for Proposal were distributed and we will be reviewing the proposals on April 9th. Accordingly, the resolution will need some blanks filled in prior to action. The cost for these services are included within the project budget. As you recall, the Board discussed the process for Economic Development Strategic Planning at the last two meetings. As noted in the April 1 st meeting minutes, "Members of the Board concurred on the restructuring of the process whereby the working group would first meet to define the scope of work after which that scope of work would be incorporated into a Request for Proposals (RFP). The RFP would be distributed to select consultants and published to solicit proposals. Upon receipt of proposals the Board could make a more informed decision. The Board emphasized their interest in an action orientated approach." At their April 7th meeting, the Winter Park Town Council decided to continue to move forward with the proposal to engage RRC and EPS for Economic Development Strategic Planning. It is my understanding that they appreciate the Fraser Town Board's direction, but they have relationships with RRC and EPS and are very comfortable working with them. Further, they are eager to move forward such that any outcomes of this effort might be included in their 2016 Budget Process. If the Fraser Town Board were to Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com reconsider their direction, the Winter Park Town Council would welcome Fraser's participation in this process. Finally, they noted that this does not in any way preclude further collaboration on economic development and other matters. They appointed Barb Atwater to participate in future working group discussions with Fraser's appointees and requested staff support of those efforts. Accordingly, we have placed Economic Development Strategic Planning on the agenda for further discussion. Additionally, I understand that some Trustees have additional related matters that they would like to include in the discussion. These include community outreach and discussions, streetscape projects, Eisenhower Avenue, targeting full-time residents and downtown revitalization. Finally, we would like to propose establishment of an Arts Committee or Commission. See briefing from Catherine Trotter. As always, feel free to contact me if you have any questions or need any additional information. Jeff Durbin Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com . �f 7:00 ti COEORADO BOARD OF TRUSTEES REGULAR MEETING AGENDA FRASER TOWN HALL WEDNESDAY, APRIL 15, 2015 6:00 p.m. Members of the Board may have dinner together @ 5:30 p.m. - Fraser Town Hall Workshop - Audit Workshop 2. Roll Call 3. Approval of Agenda 4. Consent Agenda a) Minutes — April 1, 2015 5. Open Forum a) Business not on the agenda 6. Public Hearing 7. Discussion and Possible Action Regarding a) Audit Presentation and Acceptance b) Resolution 2015-03-02 Directing the Town Manager to Change a Signature Card C) Resolution 2015-03-03 Approving a Contract with Geotech for Fraser US Hwy 40 Improvement Project d) Economic Development Strategic Planning e) Arts Committee Establishment 8. Staff Reports 9. Other Business Upcoming Meetings: Wed. May 6, 2015 Wed. April 22, 2015 Lu Berner Lu Berger, Town Clerk Board of Trustees Planning Commission Posted April 9, 2015 C Town Manager Newsletter April 9, 2015 Community Matters The Town of Fraser anticipates a summer filled with construction projects that will affect not only its residents, those in east Grand County, but summer travelers as well. Work on County Road 804 (CR 804), installation of two new traffic lanes and signals at the southern end of Fraser on US Hwy 40 and work to replace and rehab aging sewer lines in its more established neighborhoods will all take place during the next few months. While we hope the disruptions are minimal, please understand that these are very important projects as we work to address a variety of problems. We will post updated project information on our website (www.frasercolorado.com) as the work progresses. CR 804 — This road surface is in desperate need of substantial repairs. Winter Park Ranch Water and Sanitation District (WPRW&SD) will replace an existing, very old water main under CR 804 which has caused landslides below the road. Replacement of the main and service lines will cause numerous cuts to the asphalt on CR 804. The project will result in a new asphalt surface from US Hwy 40 up to the top of the hill. The Town of Fraser and project partners Grand County and WPRW&SD will host an informational meeting on April 16, 2015 at 7:00 p.m. at the Fraser Historic Church and Community Center (107 Eisenhower Drive). Construction updates will be posted on the three entities' websites. The work is expected to begin during the first week in May. Lane Additions and Traffic Signals - This project expands the scope of a grant from the State to add lanes from King's Crossing Road in Winter Park to the East Grand Fire Station, and developer -funded traffic signal improvements. Signals will be installed where Rendezvous Road and where First Street intersect US Hwy 40. Preliminary off-road utility work has begun. The highway will remain open throughout the construction, but some delays may occur at various stages of work. Please exercise patience, caution and compassion for those working in this construction zone. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com Sewer Work -The project will replace and repair sewer mains to reduce the sources of ground water entering the sewer collections system. Ground water infiltration is causing significant problems at the wastewater treatment plant. Excavation will take place in the public right of way and in utility easements on some private property. Minor service interruptions are anticipated. Public informational meetings will be announced closer to the start of construction so affected property owners can gain a better understanding of the process. Finance The Finance Department has been wrapping up the final _ review of the 2014 audit, and we look forward to the 1 presentation on the 15th. The first quarter billing for utility services went out last week — this first billing of the New „a Year is reflective of rate changes adopted by the Board this past December. Continued efforts are underway for digitizing records, with a focus on training other departments and performing consolidation/re-classification and scanning of their records. We are excited about the presentation of the 2014 audited financial statements and are now anxious to begin work on the 2016 budget. Planning On March 26th in Minturn, Winter Park Town Planner James Shockey and the Fraser Town Planner presented their request for funding of a portion of the consulting estimate to update and complete the Grand County Master Plan, Subarea 1 (Winter Park/Fraser). The request of $62,525 was made to the Northwest Colorado Council of Governments (NWCCOG) technical assistance grant program. Unfortunately, they only had $18,500 to award and we did not receive any funding. The Planning Department is very busy with development and building permit reviews. The Town Planner is working with the Public Works Department and Headwaters Trails Alliance (HTA) to get a work plan in place for trail projects and additional trail signage in Fraser. The Department has received one Business Enhancement Grant application to date. The Town Planner will be hitting the streets to drum up more interest in the program. All applications will be submitted to the Board for review at a future meeting. The Town Planner has received revised submittals for the Byers Peak Wastewater Treatment Plant (generally located behind the Fraser Valley Center). The office is in the process of reviewing these submittals. N Planning Commission The Planning Commission met on March 25. We invited Jessica Ibanez, from Colorado Brick Council, to initiate a discussion and conduct an educational presentation on design policy. Fraser currently has design guidelines only in the Business District. The presentation was emailed to trustees for Jilt review and is available at the Town Planner's office. The Commission also discussed parking regulations in the Business District. The Commission is in receipt of two major subdivision proposals and both have been scheduled for public hearings at the April 22, 2015 Planning Commission meeting. The meeting will start at 6:00 PM. Elk Creek at Grand Park: Grand Park Development LLC, the applicant, is proposing 71 single-family lots to be platted and constructed in five (5) phases on approximately 17 acres. East Mountain Filing 9: Rendezvous Colorado LLC., the applicant, is proposing 54 single-family attached lots on approximately six acres. Police In February, the Fraser/Winter Park Police Department responded to 127 calls for service in the Town of Fraser, and 200 in the Town of Winter Park. These calls generated 69 incident reports of which the most significant types are: 11 Disorderly Conduct/Harassment; 9 Traffic Accidents; 7 Thefts (including 1 Auto Theft); 6 Criminal Traffic Violations (including 4 DUls); 2 Assaults; 1 Death Investigation. A total of 18 traffic citations were issued, with 9 written in each Town. Public Works Our water SCADA (telemetry) system is in need of upgrades to the programmable logic controllers (PLC) and the Panel View display screens. A briefing from the Public Works Department will be submitted to the Board in the near future requesting the procurement of these required upgrades. These upgrades are very similar to what the wastewater plant just made. The Public Works Department held a bid opening for the Sanitary Sewer Rehab project on April 2nd. There were a total of three (3) bids opened with a high bid of $385,692 and the apparent low bid being $146,324. Staff will review all bids and make a recommendation based on the lowest responsible, responsive bidder. Staff anticipates bringing a resolution authorizing the expenditure of budgeted funds for the project at the next available board meeting. Bid opening for the Pedestrian Bridge over the Fraser River project was also held by the department on April 2nd. There were a total of six (6) bids opened with a high bid of $283,703.50 and the apparent low bid being $140,460. Staff will review all bids and make a recommendation based on the lowest responsible, responsive bidder. Staff anticipates bringing a resolution authorizing the expenditure of budgeted funds for the project at the next available board meeting. Last week staff placed the eight (8) sanitary sewer flow meters (iTrackers) in targeted inflow and infiltration locations j in the collection system. 14 - I� Staff is preparing for annual collection system Na cleaning, video maintenance and inspections. This willbe year 2 of our 3 -year rotation. A staff briefing requesting approval for these budgeted expenditures will be presented at a Town Board meeting soon. The street sweeper has been out of commission for the last week and a half following some health issues. It is back up on its tires and sweeping again! Crack sealing operations have been moved from June to mid-September. This is a trial run. The Department is reviewing several applications for the seasonal gardening and seasonal utility maintenance laborer positions. We are finalizing the review of engineering RFP's for a recommendation. The Department is planning its summer work schedule for trail improvements and maintenance projects. Water and Wastewater Committee Due to limited availability of Committee members, the Water/Wastewater Committee meeting on April 14 has been cancelled. Our next meeting is scheduled for May 12. For Further Information Please feel free to contact me Jeff Durbin 970-726-5491 x202 jdurbin(c�town.fraser.co.us E FRASER BOARD OF TRUSTEES MINUTES DATE: Wednesday, April 1, 2015 MEETING: Board of Trustees Regular Meeting PLACE: Fraser Town Hall Board Room PRESENT Board: Mayor Pro -Tem Philip Vandernail; Trustees; Eileen Waldow, Katie Soles, Cody Clayton Taylor, Andy Miller and Jane Mather Staff: Town Manager Jeff Durbin; Town Clerk, Lu Berger; Town Attorney Rod McGowan Police Chief, Glen Trainor, Others: See attached list Mayor ProTem Vandernail called the meeting to order at 6:04 p.m. 1. Executive Session For a conference with the Town's Attorney for the purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-402(4) (b) regarding a pending liquor license and to include Town Attorney McGowan, Town Manager Durbin, and Town Clerk Berger. Trustee Taylor moved, and Trustee Soles seconded the motion to enter executive session. Motion carried: 6-0. Enter: 6:06 p.m. Exit: 6:37 p.m. Attorney's Opinion Required by C.R.S. 24-6-402(2)(d.5)(II)(B). As the attorney representing the Town of Fraser, I am of the opinion that the entire Executive Session, which was not recorded, constituted a privileged attorney-client communication. Rod McGowan, Town Attorney Trustee Mather moved, and Trustee Miller seconded the motion to exit executive session. Motion carried: 6-0. 2. Regular Meeting: Roll Call 3. Approval of Agenda: Trustee Waldow asked the minutes be moved to discussion. Page 2 of 4 Trustee Soles moved, and Trustee Mather seconded the motion to approve the Agenda. Motion carried: 6-0. 4. Consent Agenda: a) Minutes — March 18, 2015 Minutes moved to a discussion item. 5. Open Forum: 6. Public Hearinas: a) Rocky Mountain Moonshine Liquor License The Board of Trustees, sitting as the Fraser Local Liquor Licensing Authority, conducted the following proceedings concerning the application of The Icebox, LLC for a retail liquor store license. Trustee Taylor moved, and Trustee Soles seconded the motion to open the public hearing on Rocky Mountain Moonshine Liquor License. Motion carried: 6-0. TA McGowan briefed the Board on the liquor license public hearing procedure and exhibits were entered into the record. Trustee Waldow moved and Trustee Mather seconded the motion to accept the exhibits into the record. Motion carried: 6-0. Rocky Mountain Moonshine Inc. has held a retail liquor store license at 76827 US Hwy 40, since June 21, 2000. Due to a failure to renew their license and it subsequent expiration, RMM was required to submit an application for a new retail liquor store license. The application was submitted, along with the appropriate fees. The application was forwarded to the State for concurrent review. Staff is recommending approval of Resolution 2015-03-01, approving the application of Rocky Mountain Moonshine Inc., for a new retail liquor store license for the premises at 76827 US Hwy 40, Fraser, CO 80442. Scott Emery, owner of Rocky Mountain Moonshine Inc. addressed the question of needs and desires regarding the retail liquor store application. Trustee Taylor moved, and Trustee Soles seconded the motion to close the public hearing on Rocky Mountain Moonshine Liquor License. Motion carried: 6-0. 7. Discussion and Possible Action Reqardinq: a) Resolution 2015-03-01 Approving the Rocky Mountain Moonshine Liquor License Page 3 of 4 Trustee Mather moved, and Trustee Taylor seconded the motion to approve Resolution 2015-03-01 Approving the Rocky Mountain Moonshine Liquor License. Motion carried: 6-0. Vandernail — Aye Miller — Aye Taylor — Aye Mather - Aye Soles - Aye Waldow — Aye TA McGowan was excused from the meeting. b) Winter Park Fraser Valley Chamber of Commerce Update Catherine Ross, Executive Director of the Chamber addressed the Board on the upcoming summer event season. C) Economic Development Planning Strategy Catherine Ross, Executive Director of the Chamber, briefed the Board regarding the Economic Development Planning Strategy proposal. Clark Lipscomb, Jack Van Horn and Herb Meyring spoke in favor of moving forward with an Economic Development Plan, focused on action as opposed to study. Jack Van Horn also noted that the "us vs them" approach needs to change because we are all losing. Members of the Board concurred on the restructuring of the process whereby the working group would first meet to define the scope of work after which that scope of work would be incorporated into a Request for Proposals (RFP). The RFP would be distributed to select consultants and published to solicit proposals. Upon receipt of proposals the Board could make a more informed decision. The Board emphasized their interest in an action orientated approach. Trustee Miller moved and Trustee Soles seconded the motion to appoint Trustee Mather and Mayor Pro Tem Vandernail to the Economic Development Planning Strategy Committee. Motion carried: 6-0. d) Town Board Retreat — discussion took place before the meeting, after the executive session. Retreat will be planned for fall 2015. e) Minutes — March 18, 2015 Amend the minutes to add the Fraser Town Board to the 1st paragraph of 6b and remove the 2nd paragraph of 6b. Trustee Waldow moved, and Trustee Mather seconded the motion to approve the minutes as amended. Motion carried: 6-0. 8. Other Business: Page 4 of 4 Trustee Soles moved, and Trustee Taylor seconded the motion to adjourn. Motion carried: 6-0. 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DRAFT Certified Public Accountants and Consultants {meg WEB SITE: WWW.MCMAHANCPA.COM !t�JR CHAPEL SQUARE, BLDG C MAIN OFFICE: (970) 845-8800 A 245 CHAPEL PLACE, SUITE 300 FACSIMILE: (970) 645-8 1 08 P.O. BOX 5850, AVON, CO 6 1 620 E-MAIL: MCMAHAN@MCMAHANCPA.COM 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, 2014. 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 (- at December 31, 2014) 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: • Capitalize fixed asset additions. • Record depreciation expense. 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) 668-348 I Town of Fraser Page 2 Disagreements with Management DRAFT 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. We 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. Recommendations In planning and performing our audit of the financial statements of the Town as of and for the year ended December 31, 2014, in accordance with auditing standards generally accepted in the United States of America, we considered the Town's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiency in the Town's internal control to be a significant deficiency: Se_prepation of Duties The objectives of internal control are to provide reasonable, but not absolute assurance, that assets are safeguarded and financial statements are reliable. Segregation of accounting duties is an essential element of effective internal controls involving the separation of custody of assets from related recording and monitoring of transactions. To reduce the possibility of errors or fraud going undetected in the normal course of business, we encourage the Town to limit, to the extent possible, performance of incompatible duties by individuals in the Town's accounting functions. The following is a situation where separation of incompatible duties does not exist. As noted with the comments, management has implemented certain compensating controls so that these items are not considered significant deficiencies and not material weaknesses. Town of Fraser Page 2 DRAFT Conflicting Duties Compensating Controls Disbursements Function: The Town's Finance Director and currently has full access to the disbursement transaction cycle. He can create new vendors, enter payment data into the accounting software, sign checks and maintain the general ledger. This exposes the Town to the risk of misappropriation of assets through the payment of unauthorized disbursements. Recommendation: This risk could be mitigated by removing the finance director (and utilities administrator) has a signer on the Town's bank accounts or requiring that copies of all cancelled checks be included with bank statements and sent unopened to the Utilities Administrator. Receipting Function: The Town's Utilities Administrator and Finance Director currently have access to adjust customer accounts and also receive cash for excise tax collections. This causes risk to the Town that excise tax cash receipts may be misappropriated. Recommendation: Ensure that the Town Board, Finance Director and management team are continuing to provide the oversight detailed as compensating controls. The Town Board and the management team review financial activity of the Town. Checks generally have two signatures. The Utilities Administrator reconciles the bank statements. She also has access to the full transaction cycle, with the exception of access to check stock. The Town Board and the management team review financial activity of the Town. The Finance Director reviews all work performed by the Utility Administrator monthly, including review and approval of void and adjustment reports to customer billings. Excise tax payment totals are verified by both, the Finance Director and Utilities Administrator, and all payments are reconciled to the State Sales Tax reports. 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. March 20, 2015 MEMO TO: Mayor Smith and the Board of Trustees FROM: Nat Havens. Finance Manager DATE: April 15, 2015 SUBJECT: 2014 Audited Financial Statements MATTER BEFORE BOARD: At the April 15th Fraser Town Board meeting the audited 2014 Financial Statements will be presented by Paul Backes, CPA, of McMahan and Associates. During the Board's workshop, and in addition to the auditor's dialogue of the process and outcomes, a discussion of the "Letter to the Governing Board" and the Management's Discussion and Analysis (MD&A) will be reviewed. ACTION REQUESTED: The Board will be asked to accept the audited financial statements as presented, by a motion to accept. EXECUTIVE SUMMARY: The Town of Fraser is required to have an independent firm audit its financial statements on a yearly basis. The annual audit of the Town's financial statements occurred during the week of February 9th in accordance with auditing standards generally accepted in the United States. An audit was performed to obtain audit evidence about the amounts and disclosures in the financial statements provided by the Town. The outcome of the audit was a determination that the financial statements of the Town present fairly, in all material respects, the respective financial positon of the Town as of December 31. 2014. BACKGROUND: Colorado Audit Law Requirements: The Local Government Audit Law (Section 29-1-601 et seq., C.R.S.) requires Colorado local governments to have an annual audit of their financial statements. The law states that the audit must be performed by an independent Certified Public Accountant (CPA) and be in accordance with generally accepted auditing standards. ALTERNATIVES: The presentation of the 2014 Audited Financial Statements is a "presentation of fact" so inherently the audit cannot be disputed — except factually. RECOMMENDATION: It is staff's recommendation that the audit be accepted as presented. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com Town of Fraser Fraser, Colorado Financial Statements December 31, 2014 Town of Fraser, Colorado Financial Report December 31, 2014 Table of Contents Page INDEPENDENT AUDITOR'S REPORT Al —A2 Management's Discussion and Analysis B1 — B11 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets C1 Statement 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 Proprietary Fund: Statement of Net Assets - Enterprise Funds C7 Statement of RevegvesAExpenses and Changes in Net Assets - Enterprise Fund C8 Statement of Cash Flows - Enterprise Funds C9 Fiduciary Fund: Statement of Fiduciary Net Assets C10 Statement of Changes in Fiduciary Net Assets 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 Town of Fraser, Colorado Financial Report December 31, 2014 Table of Contents (Continued) Required Supplementary Information (continued): Schedule of Expenditures and Transfers - Budget (GAAP Basis) and Actual General Fund Special Revenue Fund - Conservation Trust Fund Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Budget (GAAP Basis) and Actual Debt Service Fund Capital Projects Fund - Capital Equipment Replacement Fund Schedule of Revenues, Expenditures and Changes in Net Assets - Budget (Non -GAAP Basis) and Actual With Reconciliation to GAAP Basis Enterprise Fund - Water Fu Enterprise Fund - Waste r F Agency Fund Annual Sched and Streets ExMhditures for Roads, Bridges Page E3 E4 F1 F2 F3 F4 F5 F6 — F7 M MCMAHAN AND ASSOCIATES, L. L.C. Certified Public Accountants and Consultants {meg WEB SITE: WWW.MCMAHANCPA.COM !t�JR CHAPEL SQUARE, BLDG C MAIN OFFICE: (970) 845-8800 A 245 CHAPEL PLACE, SUITE 300 FACSIMILE: (970) 845-8 1 08 P.O. BOX 5850, AVON, CO 8 1 620 E-MAIL: MCMAHAN@MCMAHANCPA.COM 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, 2014, 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, 2014, 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. Member: American Institute of Certified Public Accountants PAUL J. BACKES, CPA, CGMA AVON: (970) 845-8800 MICHAEL N. iJENKINS, CA, CPA, CGMA DANIEL R. CUDAHY. CPA. CDMA Al ASPEN: (970) 544-3996 FRISCO: (970) 668-348 1 To the Honorable Mayor and Town Board Town of Fraser 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 management 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 comprise 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. March 20, 2015 A2 MANAGEMENT'S DISCUSSION AND ANALYSIS Town of Fraser, Colorado Management's Discussion and Analysis December 31, 2014 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, 2014. 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 Wastewater Treatment Facility — providing both the operational expertise and financial management of the facility for the three mem Iorganizations who share the plant. In addition the Town participates in a joint Fraser/Winter Par ice 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 a odu to the Town's basic financial statements. The Town's basic financial statements inclu ehree 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*ic financial statements. Government -wide financial statements: The government-�nah 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 distribution and system maintenance and wastewater function and system maintenance. 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. m 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 administration, planning, law enforcement, streets and properties. • Conservation Trust Fund (CTF), which is funded by lottery proceeds and provides for open space and recreational capital projects. • Capital Equipment Replacement Fund (CERF), which provides for vehicle and heavy equipment purchases. • Capital Asset Fund (CAF), which is intended to fund long term maintenance of capital assets (streets, buildings, parks, trails, etc). • Debt Service Fund (DSF), which provides for debt service payments. • Fraser River Enhancement Project (FREP) Fund, which was utilized for the Fraser River Enhancement Project to provide transparency and accountability for the project. The Town adopts an annually appropriated budget for all governmental funds. A budgetary comparison statement has been provided for the General 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 (WWF), an enterprise fund for the Town's wastewater utility. • Joint Facilities Fund (JFF) O&M and the Joint Facilities Fund CRR, both of which provide for operations and capital projects at the Wastewater Treatment Plant. 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. 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. AN Overview of the Financial Statements (continued) The largest portion of the Town's assets are reflected in the investment in capital assets (i.e. land, buildings, improvements, and equipment). Capital assets account for 75% of the total assets of $41,161,616. 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. In 2014 the General Fund had a $166,378 expenditure (investment in capital) for the construction in progress related to the RAMP project, and another $63k invested in building and equipment capital additions. The Town is showing on the following chart restricted assets to its net position: $837,338 will be spent on the 2015 RAMP project, and $15.6k which will be added to the roughly $200k in the forms of a GOCO Grant and matching general fund expenditures towards the Fraser River Bridge project. Government -wide Fund Analysis Financial Highlights • On a short term view, the Town's governmental fund balances increased by $859,306 in 2014. The Town's General Fund's fund balance increased $718,974. This very positive statement needs further discussion for the reader to have a complete understanding of its meaning. The "governmental funds" would include the Town's General Fund (GF) ((included in the GF is the Town's Capital Asset Fund (CAF)), the Debt Service Fund (DSF), Conservation Trust Fund (CTF), and the Capital Equipment Replacement Fund (CERF)). On the aggregate and in addition to the GF's increase, the other balances represent DSF = $129,210, reserved for debt service payments and catastrophic street repairs, CTF = $15,602 all of which has been earmarked for the 2015 Fraser River Trail Bridge Project ($10k was a grant from Grand County towards this project) and the CERF had a decrease in fund balance of ($5,007). The GF increase in fund balance relates to a positive cash basis balance at year end 2014 and in addition a large liability of nearly $670k which will be expensed fully in 2015 for the RAMP project. The majority of the fund balance increase was from grants and contributions to projects from outside entities — these dollars will be expensed in 2015. The DSF did add to its fund balance, from dollars collected above the cost of the year's bond payments, and the General Fund had positive cash flow of roughly $135k in 2014. • On a long-term view (including depreciation and excluding capital outlay, etc.) the Town had a 1 % ($499,180) increase in net position from $38,709,645 to $39,208,825. "Net Position" for the Town refers to both the governmental and business -type (Water Fund (WF) and Wastewater Fund (WWF)) activities. Again when you drill down on the Statement of Activities (pg. C2) you will gain a better understanding of where the 1 % increase is derived. In actuality the business -type activities (WF & WWF) had a decrease in net position of nearly - $200k, while the governmental activities had a positive balance of nearly $700k — but remember what that is related too. Contributions for both operating and capital are comprised of $213,077 is a combination of reimbursable professional services of $178,944 (which had a corresponding expense line item) along with $34,660 in Misc. Revenue. The other operating grant of $44,896 is the Town's share of Highway User Tax Proceeds (a revenue share -back from the State from gas tax based upon a municipalities road miles) — this revenue is accounted for in the CERF, and in addition to GF transfers is how the Town purchases its Public Works fleet and heavy equipment along with public safety vehicles. Am Government -wide Fund Analysis (continued) Financial Highlights (continued) The "long-term" view includes depreciation expense. On page D5 you will see the schedule the Town uses to depreciate its assets. On pages D14 - D15 you will seethe corresponding schedules for depreciation and additions to capital investments. It's important to review the depreciation schedule and compare it to the age of the assets being depreciated. Streets were depreciated in an amount exceeding half a million dollars and are currently aged at over fifteen years with very little investment in the road surface, and with no designated revenues or reserves associated with this asset. Water and wastewater systems were depreciated at over eight hundred thousand dollars with over half a million of that depreciation relating to underground utilities. Over half the Town's underground utilities have exceeded their depreciation life cycle — again with no designated revenue streams and minimal if any reserves set-aside. Swift and adequate measures related to reserve policies will be required to allow the Town to meet its obligations for safe, reliable and sustainable water and wastewater systems as well as community streets. The Town continues to allow for additional growth in utilities and streets yet the issue of the cost of maintenance as reflected by service fees remains a community concern. The Town's restricted net position has changes as follows: M Balance Balance 1/1/14 Additions Deletions 12/31/14 General Fund: Fees in lieu of Park $ 6,379 - 6,379 Affordable housing impact fee 135,426 - - 135,426 Emergency reserves 80,000 - 80,000 RAMP Local Agency Match - 38 - 837,338 Debt Service Fund reserves: Next year's payments 0 - - 300,000 Conservation Trust Fund 15,602 - 16,495 Wastewater Fund Operating reserve 45,739 1,182 - 46,921 Capital replacement reserve 815,582 4,624 (59,277) 760,929 $ 1,384,019 $ 858,746 $ (59, 277) $2,183,488 M The following shows the Town's net position for 2014: Town of Fraser's Net Position Governmental Business -type Activities Activities Total 2014 2013 2014 2013 2014 Assets: 2013 Current and other assets $ 5,231,395 4,358,351 5,067,379 4,521,659 10,298,774 8,880,010 Capital assets 10,019,549 10,482,297 20,843,293 21,588,676 30,862,842 32,070,973 Total Assets 15,250,944 14,840,648 25,910,672 26,1 10,335 41 ,161 ,616 40,950,983 Liabilities: Other liabilities 113,863 107,354 20,915 26,718 134,778 134,072 Long-term liabilities outstanding 1,515,130 1,810,321 - - 1,515,130 1,810,321 Total Liabilities 1,628,993 1,917,675 20,915 26,718 1,649,908 1,944,393 Deferred Inflows of Resources: Unavailable revenue 302,356 296,945 - - 302,356 296,945 Total Deferred Inflows of Resources 302,356 296,945 - - 302,356 296,945 Net Position: Invested in capital assets 8,504,419 8,671,976 20, 21,588,676 29,347,712 30,260,652 Restricted 1,375,638 522,698 80 861,321 2,183,488 1,384,019 Unrestricted 3,439,538 3,431,35 238,6 3,633,620 7,678,152 7,064,974 Total Net Position $13,319,595 12,626,02857 26,083,617 39,209,352 38,709,645 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: M Town of Fraser's Change in Net Position Governmental Business -type Activities Activities Total 2014 2013 2014 2013 2014 2013 REVENUES: Program revenues: Charges for services $ 62,273 34,494 1,495,863 1,327,761 1,558,136 1,362,255 Operating grants and contributions 258,500 344,949 4,889 12,405 263,389 357,354 Capital grants and contributions 837,338 41,837 120,000 185,000 957,338 226,837 General revenues: Property taxes 276,731 298,658 - - 276,731 298,658 Sales and Use taxes 1,970,700 1,848,144 - - 1,970,700 1,848,144 Other taxes 78,712 74,219 - - 78,712 74,219 Interest and other revenue 47,994 44,311 12,429 16,224 60,423 60,535 Total Revenues 3,532,248 2,686,612 1,633,181 1,541,390 5,165,429 4,228,002 EXPENSES: General government 992,157 980,819 - - 992,157 980,819 Culture and recreation 64,295 57,202 - - 64,295 57,202 Public safety 421,100 424,376 - - 421,100 424,376 Public works 1,295,480 1,445,645 - - 1,295,480 1,445,645 Interest 85,649 94,464 - 85,649 94,464 Water - 873, 815,110 873,477 815,110 Wastewater - - 933,564 874,922 933,564 874,922 Total Expenses 2,858,681 3,002,506 807,041 1,690,032 4,665,722 4,692,538 Change in Net Position Before Transfers 673,567 (31 4) (173,860) (148,642) 499,707 (464,536) Transfers in (out) 20,000 (20,000) (20,000) - - 93, 95,894) (193,860) (168,642) 499,707 Change in Net Position 6935112,62,& (464,536) Net Position -Jan 1 12,6 ,10% 1 922 26,083,617 26,252,259 38,709,645 39,174,181 Net Position - December 31 $13,319,595 2,6 28 25,889,757 26,083,617 39,209,352 38,709,645 Governmental activities: Govern tal activities increased the Town's net position by $693,040 during 2014, as compared to a decr s et position of $295,894 during 2013. The following are the major elements of the change in ne ion from December 31, 2013 to December 31, 2014: • Sales and use tax revenue increased. The Town's sales tax revenues continue to rebound from the economic downturn of 2008-2009. The increase occurred despite the sale and subsequent closing of the Kentucky Fried Chicken/Taco Bell fast food restaurant and a five month closure of the Pinnacle Lodge as it sold and was re -badged and upgraded to a Holiday Inn Express. At the end of 2014 one of our largest businesses, ALCO, became a victim of the Duckwall/Alco bankruptcy case; the Fraser store location closed its doors for good at the end of February 2015. The Town reduced its projected sales tax revenues for the 2015 budget. 0 Government -wide Financial Analysis (continued) The Town also saw an increase in building activity in 2014 resulting in higher than budgeted "Use Tax on Building Materials". The Town maintains a conservative philosophy on budgeting "one- time" revenues. The Town expects significant Use Tax revenues in 2015 receipts, but still maintained a conservative budget amount. • There was a large increase in capital grants due to local agency match RAMP funds received. These are included in restricted fund balance in the General Fund. As discussed earlier a significant increase in the Town's net position is due to funds received for projects which we had anticipated completing in 2014 but due to funding and bid timing, these projects will be completed in 2015. Both projects, RAMP and the Fraser River Bridge projects will enhance quality of life and will be economic drivers for the community. The following is a graph of the Town's governmental activities revenues by source for 2014. 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 and hardware stores within its municipal boundaries. The Town will continue to help the local business community attract and develop a more varied mixture of vendors armealinq to both the communitv's residents and its resort willbotioners. Otherl 2% Sales and 569 Interestand other Chargesfor ra Grants The following is a graph (A )ital Grants and -ontributions (cluding assets) 24% 'rope rty Taxes 8% TowIff governmental activities expenditures by function for 2014. Interest 3% 4 Public works 45% General government 15% Public safety M 15% Culture and recreation 2% Government -wide Financial Analysis (continued) Business -type activities: Business -type activities decreased the Town's net position by $193,860. Key elements of this decrease are as follows: • Depreciation expense on capitalized assets of $825,903 accounted for 46% of total operating expenses. In 2008 the Town created the Capital Asset Fund (CAF) to account for the all future year associated costs related to all capital expenditures. As an example when the "Goranson Station" pocket park was created on the Town owned property in 2013/2014 not only did we have the initial expense but like all capital assets there will be yearly maintenance and improvement costs associated with the park. Even though the Town has yet to identify and establish revenue streams for its CAF - the fund is currently funded on a per project basis versus the goal of sustainable funding for the CAF to show the future liabilities of the Town. In addition the Mayor and the Board of Trustees of the Town anticipate improving the reserve policies of its governmental funds and the water and wastewater funds in 2015 setting new policy and funding projections. The following is a graph of the business -type revenues by sourc4e-4. Capital Grants and Interestand Operating Grants Contributions ^other revenue / o &Contributions .7% 1 _ /0 0% The following is a graph of services 92% ss -type expenses by function for 2014. _ Personnel / 23% Depreciation 46% Commodities 10% System Contractual development and 18% other 3% 0 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. 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 $4,831,784; the funds increased $858,779 from the prior year's ending balances. The Town's governmental fund balances for 2014 and the past two years are graphed as follows: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Debt SeOWund M ■ Capital Equipment Fund Proprietary funds: The Town's proprietary fund provides 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. m Budget variances in the General Fund: The Town had the following significant budget variances which are detailed as follows: Variance Positive (Negative) Account Reason Revenues: $ 220,700 Sales & use taxes Conservative budgeting with an increase in housing starts. Sales tax increased 5% from prior year. (1,280,638) Other revenue Budgeted entire RAMP Grant, but only received local agecy match in 2014. Expect to receive federal grant funds from CDOT in 2015. Expenditures: General Government: 101,730 Town board comm enhanc. Economic Development grants not expensed in 2014. (37,593) Other purchased services Reimbursable professional services were more than expected. Public Works 27,890 Other purchased services Budgeted for more engineering fees than actual. 94,008 Property management Fraser River Bridge Project funding delayed. Will start in 2015. 2,097,939 Capital outlay RAMP project budgeted but only started. Will complete in 2015. 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 D14 and D15 of this report. Long-term debts: As of the end of the currentfl I y wn had $1,532,265 in long-term obligations. This includes obligations for sales an ax revenue bonds, general obligation bonds capital leases and accrued compensated absences. The Town anticipates paying off its bonded debt in 2017. Additional information regarding the Town's debt can be found on pages D16 — 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 $1,848,144 in 2013 to $1,970,700 in 2014. The following ch,4 indicates changes in the taxes collections: 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 2012 2013 2014 ■Sales and Use Taxes The Town's 2014 sales and use tax collections increased over the past years. The 2015 five percent increase in sales tax receipts represent the second largest year of collections in Town history. am Next year's budget and rates: The Town's General Fund balance at the end of the current fiscal year was $3,804,297. The Town's 2015 budget anticipates decreasing the General Fund balance by $1,060,088. 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. B11 GOVERNMENT -WIDE FINANCIAL STATEMENTS Town of Fraser, Colorado Statement of Net Position For the Year Ended December 31, 2014 Governmental Business -type Activities Activities Total Assets: Cash and investments - Unrestricted 4,265,759 Cash and investments - Restricted 300,000 Cash with County Treasurer - Accounts, taxes, and interest receivables 662,774 Due from fiduciary fund - Prepaid expenses 2,862 Capital assets, net 10,019,549 Total Assets 15,250,944 Liabilities: Accounts payable 84,928 Due to fiduciary fund 11,800 Other liabilities - Accrued compensated absences 1 135 Non-current liabilities due within one year 222 Non-current liabilities due longer than one year 1,202,908 Total Liabilities 1,628,993 Deferred Inflows of Resources: Unavailable revenue - property taxes 302,356 Total Deferred Inflows of Resources 302,356 Net Position: Net investment in cap Restricted Unrestricted Total Net Position 8,504,419 1,375,638 3,439,538 13,319,595 3,887,768 12,504 363,606 803,501 20,843,293 25,910,672 11,400 9,515 20,915 20,843,293 807,850 4,238,614 25,889,757 The accompanying notes are an integral part of these financial statements. C1 8,153,527 300,000 12,504 1,026,380 803,501 2,862 30,862,842 41,161,616 84,928 11,800 11,400 26,650 312,222 1,202,908 1,649,908 302,356 302,356 29,347,712 2,183,488 7,678,152 39,209,352 Functions/Programs: Governmental activities: General government Culture and recreation Public safety Public works Interest Total governmental activities Business -type activities: Water Wastewater Total business -type activities Total Town of Fraser, Colorado Statement of Activities For the Year Ended December 31, 2014 Charges for Expenses Services 992,157 62,273 64,295 - 421,100 - 1,295,480 - 85,649 - 2,858,681 62,273 873,477 785,964 933,564 709,899 1,807,041 1,495,86 4,665,722 1,558, General revenues: Taxes: Property tax Specific ownership t General sales and use Franchise tax Other miscellaneous taxes Investment earnings Miscellaneous Transfers to (from) Total general revenues and transfers Change in Net Position Net Position - Beginning of Year Net Position - End of Year The accompanying notes are an integral part of these financial statements. C2 Net (Expense) Revenue and ogram Revenues Changes in Net Position Operating Capital Grants and Grants and Governmental Business -type Contributions Contributions Activities Activities Total 213,604 (716,280) - (716,280) - - (64,295) - (64,295) - - (421,100) - (421,100) 44,896 37,338 (413,246) - (413,246) - - (85,649) - (85,649) 2 8,500 837,338 (1,700,570) - (1,700,570) ,5N - - (82,949) (82,949) 2 120,000 - (103,340) (103,340) 4, 120,000 - (186,289) (186,289) 957,338 (1,700,570) (186,289) (1,886,859) 276,731 - 276,731 15,009 - 15,009 1,970,700 - 1,970,700 55,006 - 55,006 8,697 - 8,697 4,816 12,429 17,245 43,178 - 43,178 20,000 (20,000) - 2,394,137 (7,571) 2,386,566 693,567 (193,860) 499,707 The accompanying notes are an integral part of these financial statements. C2 FUND FINANCIAL STATEMENTS Town of Fraser, Colorado Balance Sheet Governmental Funds December 31, 2014 The accompanying notes are an integral part of these financial statements. C3 Capital Total Debt Conservation Equipment Governmental General Service Trust Replacement Funds Assets: Cash and investments -Unrestricted 3,540,119 245,644 6,495 462,218 4,264,476 Cash and investments - Restricted - 300,000 - - 300,000 Cash with County Treasurer 986 296 - - 1,282 Receivables 8,521 - - 8,521 Prepaid expenses 2,862 - - - 2,862 Due from other governments 373,687 - 3,360 377,047 Property tax receivable 197,206 8 , - - 277,206 Total Assets 4,123,381 625,9 16,495 465,578 5,231,394 Liabilities and Fund Equity: Liabilities: Accounts/vouchers payable 84,9 - - - 84,927 Due to fiduciary fund 11,800 - - - 11,800 Other liabilities 25,150 - - - 25,150 Total Liabilities 121,877 - - - 121,877 Deferred Inflows of Resources: Unavailable revenue - property taxes 197,206 80,000 - - 277,206 Total Deferred Inflows of Resources 197,206 80,000 - - 277,206 Fund Balances: Unspendable 11,383 - - - 11,383 Spendable Restricted 1,059,143 300,000 16,495 1,375,638 Committed - 245,940 - 245,940 Assigned 1,810,088 - - 465,578 2,275,666 Unassigned 923,684 - - 923,684 Total Fund Balances 3,804,298 545,940 16,495 465,578 4,832,311 Total Liabilities, Deferred Inflows of Resources and Fund Balances 4,123,381 625,940 16,495 465,578 5,231,394 The accompanying notes are an integral part of these financial statements. C3 Town of Fraser, Colorado Reconciliation of Governmental Fund Balance to Governmental Activities Net Position December 31, 2014 Amounts reported for governmental activities in the Statement of Net Position are different because: Governmental Fund Balance 4,832,311 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 10,019,549 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. (1,532,265) Net Position of Governmental Activities 13,319,595 The accompanying notes are an integral part of these financial statements. C4 Town of Fraser, Colorado Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2014 Expenditures: General government 950,749 - - Capital Total Public safety 406,188 Debt Conservation Equipment Governmental Public works General Service Trust Replacement Funds Revenues: 16,568 - - - 16,568 Taxes 2,241,573 84,570 - - 2,326,143 Licenses and permits 42,469 - - - 42,469 Charges for services 19,805 - - - 19,805 Intergovernmental revenue 10,000 - 15,595 44,896 70,491 Investment income 3,667 595 7 550 4,819 Miscellaneous 1,062,362 - - - 1,062,362 Total Revenues 3,379,876 85,165 15,602 45,446 3,526,089 Expenditures: General government 950,749 - - - 950,749 Public safety 406,188 - - - 406,188 Public works 667,559 - - - 667,559 Culture and recreation 16,568 - - - 16,568 Debt service 38,374 300,994 - 45,418 384,786 Capital outlay 242,061 - - 25,035 267,096 Total Expenditures 2,321,499 300,9 - 70,453 2,692,946 Excess (Deficiency) of Revenues Over Expenditures 1,058,377 9 15,602 (25,007) 833,143 Other Financing Sources (Uses): Transfers in (out) (34 039 - 20,000 20,000 Sale of assets ,163 - - - 6,163 Total Other Financing Sources (Uses) (338,876) 4'5,039 - 20,000 26,163 Excess (Deficiency) of Revenues and OthN19,501 Financing Sources Over Expenditures and Other Financing (Uses) 129,210 15,602 (5,007) 859,306 Fund Balances - Beginning of Year 3 84,797 416,730 893 470,585 3,973,005 Fund Balances - End of Year 804,298 545,940 16,495 465,578 4,832,311 The accompanying notes are an integral part of these financial statements. C5 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, 2014 Net Change in Fund Balances of Governmental Funds 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. 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. 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. 4& Change in Net Position o#,Gove The accompanying notes are an integral part of these financial statements. C6 859,306 (462,748) 1,819 295,190 693,567 Town of Fraser, Colorado Statement of Net Position Enterprise Funds For the Year Ended December 31, 2014 Assets: Current assets: Cash and cash equivalents Utility receivables Due (to) from fiduciary fund Due from other governments Total Current Assets Non-current assets: Land Water rights Equipment Treatment plant and system Less: Accumulated depreciation Total Non -Current Assets Total Assets Liabilities and Fund Equity: Liabilities: Current liabilities: Deposits payable Total Current Liabilities Non-current liabilities: Accrued compensated absences Total Liabilities ld� Net Position: Net investment in capita Restricted Unrestricted Total Net Position Water Fund 1,052,573 183,448 6,781 1,242,802 100, 191 14,636,498 4,315,594) 10,794,674 N7,476 11,400 11,400 Wastewater Fund 2,835,195 180,158 803,501 5,723 3,824,577 144,320 98,106 14,411,701 ,605,508) 0,048,619 13,873,196 Total Enterprise Funds 3,887,768 363,606 803,501 12,504 5,067,379 244,320 19,776 452,100 29,048,199 (8,921,102) 20,843,293 25,910,672 11,400 11,400 4,746 4,769 9,515 16,146 4,769 20,915 10,794,674 10,048,619 - 807,850 1,226,656 3,011,958 12,021,330 13,868,427 The accompanying notes are an integral part of these financial statements. C7 20,843,293 807,850 4,238,614 25,889,757 Town of Fraser, Colorado Statement of Revenues, Expenses and Changes in Net Position Enterprise Funds For the Year Ended December 31, 2014 Operating Revenues: Charges for services Meter sales Miscellaneous revenue Total Operating Revenues Operating Expenses: Personnel Commodities Contractual System development Other Depreciation Total Operating Expenses Operating Income (Loss) Non -Operating Revenues: Interest revenue Net Non -Operating Revenues Income (Loss) before Co Capital contributions Transfers (out) Contributions and Tr; Change in Net Position Net Position - Beginning of Year Net Position - End of Year Total Enterprise Water Wastewater Funds 771,074 707,763 1,478,837 14,890 - 14,890 4,564 2,461 7,025 790,528 710,224 1,500,752 187,641 225,280 412,921 124,002 59,691 183,693 113,152 209,027 322,179 49,138 - 49,138 13,206 13,206 399,544 426,359 825,903 73,477 933,563 1,807,040 I(T2,949) (223,339) (306,288) 3,506 8,922 12,428 3,506 8,922 12,428 ra%;frs (79,443) (214,417) (293,860) 120,000 120,000 (10,000) (10,000) (20,000) (10,000) 110,000 100,000 (89,443) (104,417) (193,860) 12,110, 773 13, 972, 844 12,021,330 13,868,427 The accompanying notes are an integral part of these financial statements. C8 26,083,617 25,889,757 Town of Fraser, Colorado Statement of Cash Flows Enterprise Funds For the Year Ended December 31, 2014 Cash Flows From Operating Activities: Cash received from customers Other cash received Cash received (paid) for deposits Cash payments for goods and services Cash payments for salaries and benefits Net Cash Provided (Used) by Operating Activities Cash Flows From Non -Capital and Related Financing Activities: Cash transferred to other funds Cash received from non -capital contributions Net Cash Provided (Used) by Non -Capital and Related Financing Activities Cash Flows From Capital and Related Financing Activities: Plant investment fees (paid) received Cash (paid) for assets Net Cash Provided (Used) by Capital and Related Financing Activities lob Cash Flows From Investing Activities: Interest Net Cash Provided (Used) by Investing Net (Decrease) Increase in Cash and Ca Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - End of Yei Reconciliation of Operating Income (Lossy1% 1W Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments: Depreciation (Increase) decrease in accounts receivable Increase (decrease) in accrued compensated absences Increase (decrease) in deposits Total Adjustments Net Cash Provided (Used) by Operating Activities Total Enterprise Water Wastewater Funds 763,911 681,224 1,445,135 (3,800) 29,000 25,200 (4,460) 52,594 48,134 (286,292) (281,924) (568,216) (187,010) (227,254) (414,264) 282,349 253,640 535,989 282,349 253,640 535,989 (16,637) (10,000) (26,637) - (21,220) (21,220) (31,220) (47,857) - 120,000 120,000 17,262) (63,258) (80,520) Ilk (17,262) NIP ® 3,506 3,506 251,956 800,617 1,052,573 56,742 8,922 8.922 288,084 2,547,111 2,835,195 39,480 12,428 12,428 540,040 3,347,728 3,887,768 (82,949) (223,339) (306,288) 399,544 426,359 825,903 (30,417) - (30,417) 631 (1,974) (1,343) (4,460) 52,594 48,134 365,298 476,979 842,277 282,349 253,640 535,989 The accompanying notes are an integral part of these financial statements. C9 Assets: Cash and cash equivalents Accounts receivable, net: Total Assets Liabilities: Accounts payable Deposits Total Liabilities Net Position: Held for others Town of Fraser, Colorado Statement of Fiduciary Net Position December 31, 2014 JFOC Agency Fund 2,389,882 63,490 2,453,372 23,312 2,430,06 2,453, The accompanying notes are an integral part of these financial statements. C10 Town of Fraser, Colorado Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2014 Operating Revenues: Charges for operations and maintenance costs Transfer in Total Operating Revenues Operating Expenses: Salaries and Wages Employee Benefits Purchased services Supplies Utilities Total Operating Expenses Operating Income (I Change in Net Posit Due to Others - Beg Due to Others - End JFOC Agency Fund 451,942 154,032 605,974 178,842 56,091 172,502 42,641 155,898 605,974 The accompanying notes are an integral part of these financial statements. C11 NOTES TO THE FINANCIAL STATEMENTS Town of Fraser Notes to the Financial Statements December 31, 2014 I. Summary of Significant Accounting Policies The Town of Fraser, Colorado (the "Town") is incorporated under Colorado statutes to provide public safety, highways and streets, water service, health and social services, culture -recreation, public health improvements, 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). Although the Town has the option to apply FASB pronouncements after that date to its business -type activities and enterprise funds, the Town has not chosen to do so. 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 Wastewater 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 District's net position are reported in three parts — Net investment in capital assets; Restricted net position; and Unrestricted net position. D1 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) 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. 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 rre„ regar s of the timing of the related cash flows. 2. Current Fi cial ocus and Modified Accrual Basis The gover ntal 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 lodging 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. D2 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) 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. D3 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) 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 Funis for gents made on the Town's bonded debt obligations. The Town reports the f, ' - ' g prdWary or business -type funds: The WalifflFund a unts fdWe purchase and delivery of water to the citizens of the TdW ThAdIPINIONNoTalso maintains the infrastructure needed to The Was tend accounts for the treatment of wastewater from the citizens of the Tow he Wastewater Fund also maintains the infrastructure needed to provide was., . ater 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 Wastewater 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. D4 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 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. 2. Receivables Receivables are reported net of an allowance for uncollectible accounts. 3. 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. 4. Capital Assets Capital assets, which incl nd, 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: Assets Years Infrastructure 15-30 Buildings and improvements 15-40 Distribution systems 40 Equipment and vehicles 7 D5 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 5. 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. 6. Restricted Assets Certain proceeds of the Town's government fund general obligation bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the alance sheet because their use is limited by applicable bond covenants. Fees collected for park a a a ft using impact fees are restricted as to their use by Town ordinan . Debt service property tax collected in excess of the debt service of the gen I obligation series 1998 bonds is reserved for emergency and catastrophic road failure, future debt service or early redemption of the bond. 7. Deferred utflp flows of resources In addition bassets, 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 government doesn't have any deferred outflows of resources at December 31, 2014. 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 government has only one type of item that qualifies for reporting in this category. Accordingly, the item, Unavailable revenue—property taxes is deferred and recognized as an inflow of resources in the period that the amounts become available. W Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 8. 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 balance amounts that are constrained for specific purposes whit ,are a rnally imposed by providers, such as creditors or amounts con ined due to constitutional provisions or enabling legislation. Committ 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. 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. The Town does not have a formal minimum fund balance policy. However, the Town's budget includes a calculation of a targeted reserve position and the Administration calculates targets and reports them annually to the Town Board. D7 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 9. 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. 10. Deposits Deposits on the JFOC Operations Fund represent contributions made to the JFOC operations fund by Winter Park Ranch Water and Sanitation District ("Winter Park Ranch") and Grand County Water and Sanitation District #1 ("Grand County #1 ") and the Tow reviously the Fraser Sanitation District) for operating and replacement cost ating to the combined wastewater treatment plant. These deposits are held working capital and replacement costs during the time all Districts remain joint rs of the plant. F. Significant Accounting Polic 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. 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. HE Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) 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 $10,019,549 represents the book value of assets at December 31, 2014. Another 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 details of this $1,532,265 difference represent accrued compensated absences, sales and use tax revenue bonds, general obligation bonds, and capital leases payable 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. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense". The details of this $462,748 difference are capital outlay of $229,613 less depreciation expense of $692,361. Also, repayment of long-term obligations of $295,190 is shown as an expenditure in the governmental fund, but is not reflected in the Statement of Activities. III. Stewardship, Compliance, and Accountability A. Budgetary Information 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 2014. (1) For the 2014 budget year, prior to August 25, 2013, 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, 2013, a recommended budget which detailed the necessary property taxes needed along with other available revenues to meet the Town's operating requirements. K• Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) (3) Prior to December 15, 2013, 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 2013 were collected in 2014 and taxes certified in 2014 will be collected in 2015. 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. 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 $80,000. D10 IV Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Stewardship, Compliance, and Accountability (continued) B. TABOR Amendment (continued) 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. Detailed Notes on All Funds A. Deposits 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 was $99,611 at year end. The Town had the following deposits and investments for all funds except the JFOC Operations Fund, with the following maturities December 31, 2014: Deposits: q Checking Accounts Investments: Cash with fiscal agent Investment Pools Rating Carrying Amount Not Rated $ 99,611 13,786 AAAm 8,352,634 $ 8,466,031 D11 Maturities Less Than Less Than One Year Five Years 99,611 - 13,786 8,352,634 - IV. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on All Funds (continued) A. Deposits (continued) The Town had the following deposits and investments for the JFOC Operations Fund with the following maturities December 31, 2014: $ 2,389,882 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. D12 Maturities Carrying Less Than Less Than Type: Rating Amount One Year Five Years Deposits: Certificates of Deposit Not Rated 1,904,352 1,519,930 384,422 Checking Accounts Not Rated 369,556 369,556 Savings Accounts Not Rated 84,072 84,072 Investments: Investment Pools AAAm 31,902 31,902 $ 2,389,882 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. D12 Town of Fraser 3,360 Notes to the Financial Statements December 31, 2014 662,774 (Continued) IV. Detailed Notes on All Funds (continued) Wastewater A. Deposits (continued) Operations At December 31, 2014, cash has been restricted for the following purposes: 1998 Sales Tax Revenue Bond Reserves $ 155,000 2002 Sales Tax Revenue Bond Reserves 20,000 1998 General Obligation Bond Reserves 40,000 Additional debt service reserve 85,000 Total Restricted Cash $ 300,000 B. Receivables $ 183,448 Receivables as of year-end for the Town's funds, including applicable allowances for uncollectible accounts, are as follows: Receivables: Property Taxes Accounts Other Intergovernmental Gross receivables Less: allowance for uncollectible Net Receiv s Receivables: Accounts Gross receivables Less: allowance for uncollectible Net Receivables General 197,206 6,714 Governmental Funds Debt Servic Capital Equipment Total 277,206 - 6,714 - 1,807 3,360 377,047 ®,.. 80,000 3,360 662,774 3,360 662,774 80,000 Water Wastewater Operations Operations Total $ 183,448 $ 180,158 $ 363,606 183,448 180,158 363,606 $ 183,448 $ 180,158 $ 363,606 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. This includes $277,206 of property taxes levied in 2014 but not available until 2015. D13 IV. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on All Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2014 was as follows: Governmental activities: Capital assets, not being depreciated: Land and improvements Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Infrastructure Buildings Furniture and equipment Total capital assets, being depreciated Less accumulated depreciation for: Infrastructure Buildings Furniture and equipment Total accumulated depreciation Total capital assets, being depreciated, net 41? Governmental activities capital assets, net a Beginning - (6,412,012) Ending Balance Increases Decreases Balance (692,361) 39,459 (8,554,675) $ 1,237,355 - - 1,237,355 - 166,378 - 166,378 1,237,355 166,378 - 1,403,733 14,392,044 - - 14,392,044 1,144,852 38,200 - 1,183,052 1,609,819 25,035 (39,459) 1,595,395 17 1 901,773 63,235 (39,459) 17,170,491 (575,089) - (6,412,012) (43,987) - (846,338) (73,285) 39,459 (1,296,325) (692,361) 39,459 (8,554,675) (629,126) - 8,615,816 $ 10,482,297 (462,748) - 10,019,549 D14 IV. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on All Funds (continued) C. Capital Assets (continued) Business -type activities: Capital assets, not being depreciated: Land Water rights Total capital assets, not being depreciated Capital assets, being depreciated: System and improvements Buildings and improvements Equipment Total capital assets, being depreciated Less accumulated depreciation for: System and improvements Buildings and improvements Equipment Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Ending Balance Increases Decreases Balance $ 825,903 $ 244,320 - - 244,320 19,776 - - 19,776 264,096 - - 264,096 22,785,670 - 6,242,730 19,799 391,379 60,721 29,419,779 80,520 (6,288,797) (634,065) (1,659,619) (159,902) 146,783 (31,936) (8 ) (825,903) 22,785,670 6,262,529 452,100 29,500,299 - (6,922,862) - (1,819,521) - (178,719) (8,921,102) (745,383) - 20,579,197 (745,383) - 20,843,293 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: Governmental activities: General government Public works, including infrastructure Public safety Culture and recreation Total governmental activities Business -type activities: Water Wastewater Total business -type activities D15 Depreciation Capital Expense Outlay $ 39,559 38,200 590,162 191,413 14,912 - 47, 728 - $ 692,361 229,613 $ 399,544 17,262 426,359 63,258 $ 825,903 80,520 IV. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on All Funds (continued) D. Interfund Receivables, Payables, and Transfers Transfers were as follows: General Debt Service Capital Equipment Capital Asset Fund Wastewater Water In Out $ - (247,373) 247,373 97,666 20,000 - (97,666) - - (10,000) - (10,000) $ 169,707 (169,707) Transfers were to provide additional resources to meet the activities provided in each fund. E. Other Liabilities 1. Capital Leases In April 2008, the Town entered into a capital lease agreement for the purchase of property within Town limits. The total amount financed was $485,725, with interest stated at 4.90% per annum. The lease requires semi-annual payments of $18,187 through 2028. In September 2013, the Town entered into a capital lease agreement for the purchase of a street sweeper. The total amount financed was $215,745 with interest stated at 2.63% per annum. The lease requires annual payments of $45,418 th " -2017. Gtu Nurrfase payments for both leases are as follows: Year Principal Interest 2015 62,222 21,570 2016 64,329 19,462 2017 66,515 17,276 2018 23,365 15,008 2018 24,524 13,850 2019-2023 142,120 49,749 2024-2027 122,055 12,251 Total $ 505,130 149,166 D16 Total 83,792 83,791 83,791 38,373 38,374 191,869 134,306 654,296 IV. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on All Funds (continued) E. Other Liabilities (continued) 2. Sales Tax Revenue Bonds In 1992, the Town issued Series 1992 Sales and Use Tax Bonds with a gross issue price of $1,145,000. This issue was partially ($525,000) refunded with the issuance $2,215,000 of Series 1998 Sales and Use Tax bonds. The proceeds not used for refunding the 1992 Sales and Use Tax Bonds were used for street improvements and paving. In 2002, the remaining outstanding balance of the 1992 Bond issue was refunded through the issuance of the 2002 Sales and Use Tax Refunding Bonds. The Series 1998 Bonds are subject to redemption prior to maturity as follows: • June 1, 2009 and thereafter, subject to redemption at 100%. Interest for both the 1998 Bonds and 2002 Bonds are payable semi-annually on June 1 and December 1 at 5.05%. Principal payments are made December 1. The required reserves are accounted for in the Town's Debt Service Fund. 3. General Obligation Bonds In 1998, the Town issued $600,000 in Series 1998 General Obligation Bonds. The bonds are secured by the full faith and credit of the Town and pay interest at 4.25% to 5.1 %. The bonds were issued to finance improvements to the Town's streets, road alks and other infrastructure. 4. Advanc .fund' IL The Town HWWvance refunded the 1992 Sales Tax Revenue Bonds. Sufficieni U.S. government, state and local government securities were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of the refunded debt. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the General Long -Term Debt Account Group. The amount of defeased bonds outstanding at year end is not readily determinable. 5. Bonded Debt The Town's annual bonded debt service is as follows: Year Principal Interest Total 2015 250,000 49,073 299,073 2016 270,000 35,016 305,016 2017 490,000 14,597 504,597 Total $ 1,010,000 98,686 1,108,686 D17 IV. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Detailed Notes on All Funds (continued) E. Other Liabilities (continued) 6. Long-term Debt The Town's annual debt service requirements are as follows: Year Principal Interest Total 2015 312,222 70,643 382,865 2016 334,329 54,478 388,807 2017 556,515 31,873 588,388 2018 513,365 29,605 542,970 2018 24,524 13,850 38,374 2019-2023 142,120 49,749 191,869 2024-2027 122,055 12,251 134,306 Total $ 2,005,130 262,449 2,267,579 7. Accrued Compensated Absences Earned but unused vacation benefits amounted to $17,135 at December 31, 2014. All unused vacation benefits are recorded on the government -wide financial statements. 8. Schedule of Changesi o NMI 1/1 Capital leases 565;3Z'f Sales and use tax bonds General obligation bond ;00- 1,065,000 1 000 Accrued compensate. absences 18,956 Total% $18-2 9.277 D18 Balance Due Within itions Reductions 12/31/14 One Year - (60,191) 505,130 62,222 - (195,000) 870,000 180,000 - (40,000) 140,000 70,000 - (1,821) 17,135 - - (297,012) 1,532,265 312,222 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) IV. Detailed Notes on All Funds (continued) F. Restricted Fund Balance The Town had the following restrictions on the fund balances at December 31, 2014: G. H. D19 Balance Balance 1/1/14 Additions Deletions 12/31/14 General Fund: Fees in lieu of Park $ 6,379 - - 6,379 Affordable housing impact fee 135,426 - - 135,426 Emergency reserves 80,000 - - 80,000 RAMP Local Agency Match - 837,338 - 837,338 Debt Service Fund reserves: Next year's payments 300,000 - - 300,000 Conservation Trust Fund 893 15,602 - 16,495 Wastewater Fund Operating reserve 45,739 1,182 - 46,921 Capital replacement reserve 815,582 4,624 (59,277) 760,929 $ 1,384,019 $ 858,746 $ (59,277) $ 2,183,488 The Town had $807,850 restricted in the Wastewater Fund for Upper Fraser Valley Wastewater Treatment Joint F ` ` ' ' gratin d capital replacement expenses. Committed Fund Balance The Town has co itted $ 5,940 the debt service fund to be used for capital projects. Assigned Fund Ba e The Town had the following assignments of the governmental fund balances at December 31, 2014: Balance Balance 1/1/14 Additions Deletions 12/31/14 General Fund: Reserve savings $ 750,000 - - 750,000 Capital projects 103,884 - (103,884) - Future budget deficit 521,879 538,209 - 1,060,088 Capital Equipment Replacement: Capital projects 470,586 - (5,008) 465,578 $ 1,846,349 538,209 (108,892) 2,275,666 D19 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) 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/Winter 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 Wastewater 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 2014. The JFOC may designate a new manager on an annual basis. In 2014, as approved by the JFOC, the Town ed $29,000 in management fees. Operations and en costs will be allocated among the three members based on each member's prop irtiona a 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. 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, 2014, Maryvale development sewer mains and infrastructure had been conveyed to the District, and is presented as an asset on the Town's financial statements. D20 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) V. Other Information (continued) A. Joint Facilities Oversight Committee ("JFOC") Operations Fund (continued) Maryvale Village (Rendezvous) (continued) 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 CWRPDA 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, 2014, 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 Winter 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, paying 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. B. Retirement Plans - Deferred Compensation Plan — Section 457 The Town offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan permits employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the plan participants and their beneficiaries. The accrual basis of accounting is used for the plan. Revenues are recognized when earned and expenditures are recognized when incurred. Investments are recorded at market value. 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. D21 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) V. Other Information (continued) C. Retirement Plans — CCOERA Retirement Plan — Section 401(a) The Town participates in the Colorado County Officials & Employees Retirement Association ("CCOERA") retirement plan (the "401(a) Plan"). CCOERA was established to provide retirement benefits to employees of Colorado local governments. Employees of the Town are required to participate in the 401(a) Plan after one full year of service. The CCOERA retirement plan was adopted in accordance with section 401(a) of the Internal Revenue Code. 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 vest over a 5 year period. The Town is neither the trustee nor the administrator for the 401(a) Plan. 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 the reaft o cost tTown is recognized as employees reimburse 100% of their premiuno E. Commitments and COO i. Public Safetv Servi In lieu of direct iding pubFic 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. The agreement requires costs to be split based upon average call volume. ii. Construction Contract for US 40 Improvements On December 19, 2014, the Town entered into an agreement with Premier Earthworks & Infrastructure, Inc. to provide all labor and material necessary to complete the Town's US 40 Improvements project for a total estimated project cost of $1,977,291. The project is expected to be funded 65% by a federal grant passed through the Colorado Department of Transportation and 35% through local agency match funds. At December 31, 2014, the Town has $837,338 restricted in the General Fund representing the portion of funds received from local agencies that is restricted for this project. No costs have been incurred to date on this project at December 31, 2014. D22 V. Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) Other Information (continued) 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. The Town's share of assets, liabilities and furiequity as of December 31, 2013, the latest date for which information is availablaW as follows: The Insurance Pools: Property and Casualty Pool: Other assets Total are 26,262 312 8,053 19,330 3,946 (1,734) 5,736 14,856 �mation is as follows: 336,516 7,342,496 $ 79,179,012 Liabilities $ 37,237,831 Members fund balance 41,941,181 Total $ 79,179,012 Total revenue $ 23,322,472 Total expense (18,792,870) (Deficiency) of Revenue Over Expense $ 4,529,602 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, 2014, the Town does not expect to incur losses in excess of the above coverage. D23 Town of Fraser Notes to the Financial Statements December 31, 2014 (Continued) V. Other Information (continued) F. Risk Management (continued) 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. G. Prepaid Plant Investment Fees The Town 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 $2,380,593 of Plant Investment Fees have been rebated to the developers. H. Related Parties The town purchased goods and services from the following companies that had direct relatives to Town Trusteesor S&njQL&wn Marement: 02 Creative LLC - $2,867 and Nick's Dirt Works LLC - $4,695 D24 REQUIRED SUPPLEMENTARY INFORMATION 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, 2014 (With Comparative Actual Amounts for 2013) Expenditures: General government Public safety Public works Culture and recreation Debt service Total Expenditures Excess (Deficiency) of Revenue: Over Expenditures Other Financing Sources (Uses Transfer in Transfer (out) Sale of assets Total Other Financing (Uses) Excess (Deficiency) of Revenues Over Expenditures and Other Financing Sources (Uses) Fund Balances - Beginning of Year 1, 0,749 41 080 06,188 3,16 909,620 I26, 0 16,568 38,374 38,374 78,965 5,892 2,255,920 9,932 941,328 402,284 854,812 9,472 38,375 FF 4,672,208 2,321,499 2,350,709 2,246,271 IN (274,503) 1,058,377 1,332,880 245,662 (97,666) (97,666) 271,500 (247,373) (247,373) - (322,610) 6,163 6,163 16,825 (247,373) (338,876) (91,503) (34,285) (521,876) 1,937,333 719,501 3,084,797 1,241,377 1,147,464 211,377 2,873,420 Fund Balances - End of Year 1,415,457 3,804,298 2,388,841 3,084,797 The accompanying notes are an integral part of these financial statements. E1 2014 2013 Original and Variance Final Positive Budget Actual (Negative) Actual Revenues: Taxes 2,011,700 2,241,573 229,873 2,137,431 Licenses and fees 34,500 42,469 7,969 32,099 Charges for services 5,000 19,805 14,805 12,395 Intergovernmental - 10,000 10,000 7,461 Interest 3,505 3,667 162 3,666 Other revenue 2,343,000 1,062,362 (1,280,638) 298,881 Total Revenues 4,397,705. t�" 9,876 (1,017,829) 2,491,933 Expenditures: General government Public safety Public works Culture and recreation Debt service Total Expenditures Excess (Deficiency) of Revenue: Over Expenditures Other Financing Sources (Uses Transfer in Transfer (out) Sale of assets Total Other Financing (Uses) Excess (Deficiency) of Revenues Over Expenditures and Other Financing Sources (Uses) Fund Balances - Beginning of Year 1, 0,749 41 080 06,188 3,16 909,620 I26, 0 16,568 38,374 38,374 78,965 5,892 2,255,920 9,932 941,328 402,284 854,812 9,472 38,375 FF 4,672,208 2,321,499 2,350,709 2,246,271 IN (274,503) 1,058,377 1,332,880 245,662 (97,666) (97,666) 271,500 (247,373) (247,373) - (322,610) 6,163 6,163 16,825 (247,373) (338,876) (91,503) (34,285) (521,876) 1,937,333 719,501 3,084,797 1,241,377 1,147,464 211,377 2,873,420 Fund Balances - End of Year 1,415,457 3,804,298 2,388,841 3,084,797 The accompanying notes are an integral part of these financial statements. E1 Taxes: Property Specific ownership Sales & use Franchise Motor vehicle Cigarette Total Licenses and Fees: Business license fees Liquor license fee Total Charges for services: Planning and building fees Total Intergovernmental: Grant revenue Total Interest: Earnings on deposits Total Town of Fraser, Colorado General Fund Schedule of Revenues Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) Other: Other income Rents Total Other Financing Sources: Transfer in Sale of assets Total Total Revenues 2014 2013 Original and Variance Final Positive Budget Actual (Negative) Actual 195,000 196,488 1,488 218,536 8,500 10,682 2,182 10,295 1,750,000 1,970,700 220,700 1,848,144 49,000 55,006 6,006 51,459 4,200 4,420 220 4,343 5,000 4,277 (723) 4,654 2,011,700 2,241,573 229,873 2,137,431 12,000 13,663 1,663 13,640 22,500 28,806 6,306 18,459 34,500 42,469 7,969 32,099 5,000 19,805 14,805 12,395 5,000 19,805 14,805 12,395 - 10,000 10,000 7,461 - 10,000 10,000 7,461 3,505 3,667 162 3,666 3,505 3,667 162 3,666 2,335,000 1,050,942 (1,284,058) 290,361 8,000 11,420 3,420 8,520 2,343,000 1,062,362 (1,280,638) 298,881 - (97,666) (97,666) 271,500 - 6,163 6,163 16,825 - (91,503) (91,503) 288,325 4,397,705 3,288,373 (1,109,332) 2,780,258 The accompanying notes are an integral part of these financial statements. E2 Town of Fraser, Colorado General Fund Schedule of Expenditures and Transfers Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) General Government: Town board salaries Town board community enhancement Miscellaneous Administrative salaries Other purchased services Utilities Property management Total General Government Public Safety Total Public Safety Public Works Salaries and benefits Other purchased services Utilities Property management Capital outlay Total Public Works Culture and Recreation Other purchased services Utilities Property management Total Culture and Recreation Debt Services Interest Principal Total Debt Services Other Financing Uses Transfer out Total Financing Sources Total Expenditures Original and Final Budget 2014 Actual 2013 Variance Positive (Negative) Actual 42,989 37,524 5,465 33,535 255,445 153,715 101,730 167,299 3,000 2,552 448 1,425 279,484 274,926 4,558 270,169 390,336 427,927 (37,591) 435,589 19,960 16,274 3,686 16,190 38,500 37,831 669 17,121 1,029,714 950,749 78,965 941,328 412,080 406,188 5,892 402,284 412,080 406,188 5,892 402,284 499,290 466,324 32,966 451,403 177,950 150,060 27,890 133,582 13,300 10,183 3,117 9,651 135,000 40,992 94,008 23,190 2,340,000 242,061 2,097,939 236,986 3,165,540 909,620 2,255,920 854,812 15,500 3,000 8,000 26,500 19,122 19,252 38,374 5,356 2,445 8,767 16,568 19,122 19,252 38,374 247,373 247,373 247,373 247,373 10,144 555 (767) 9,932 5,334 2,495 1,643 9,472 20,033 18,342 38,375 322,610 322,610 4,919,581 2,568,872 2,350,709 2,568,881 The accompanying notes are an integral part of these financial statements. E3 Town of Fraser, Colorado Special Revenue Fund Conservation Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) Original and Final Budget Revenues: Lottery proceeds 6,100 Interest 10 Total Revenues 6,110 Other Financing Uses Transfer (Out) - Total Financing Sources - 2014 Variance Positive Actual (Negative) 15,595 9,495 7 (3) 15,602 9,492 2013 Actual 6,494 22 6,516 (21,500) (21,500) Excess (Deficiency) of Revenues Over Expenditures 0 ,602 9,492 (145984) Fund Balances - Beginning of Year 4 893 491 15,877 Fund Balances -End of Year 6,512 16,495 9,983 893 The accompanying notes are an integral part of these financial statements. E4 SUPPLEMENTARY INFORMATION Town of Fraser, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) The accompanying notes are an integral part of these financial statements. F1 2014 2013 Original and Variance Final Positive Budget Actual (Negative) Actual Revenues: Property taxes 80,000 80,243 243 80,122 Specific ownership tax 3,000 4,327 1,327 3,469 Interest 250 595 345 661 Total Revenues 83,250 85,165 1,915 84,252 Expenditures: Principal 235,000 235,000 - 225,000 Interest 62,049 62,049 - 74,434 Other 4,500 3,945 555 2,944 Total Expenditures 1,54 300,994 555 302,378 Excess (Deficiency) of Revenues Over Expenditures (218, 9) (215,829) 2,470 (218,126) Other Financing Sources: Transfer in 247,373 247,373 - 247,610 Transfer outy - 97,666 97,666 (175,000) Total Other Financing Sources 247,373 345,039 97,666 72,610 Excess (Deficiency) of Revenues and er Financing Sources Over Expenditures 29,074 129,210 100,136 (145,516) Fund Balances - Beginning of Year (29,074) 416,730 445,804 562,246 Fund Balances - End of Year - 545.940 545,940 416,730 The accompanying notes are an integral part of these financial statements. F1 Town of Fraser, Colorado Capital Equipment Replacement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) Revenues: Highway users revenue Earnings on investments Total Revenues Expenditures: Capital lease Equipment Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources: Transfer In Total Other Financing SouM5s Excess (Deficiency) of Revenues and Financing Sources Over Expenditui Fund Balances - Beginning of Year Fund Balances - End of Year 2014 2013 Original and Variance Final Positive Budget Actual (Negative) Actual 44,594 44,896 302 44,588 300 550 250 663 44,894 45,446 552 45,251 45,418 45,418 - 45,418 50,000 25,035 24,965 77,179 95,418 70,453 24,965 122,597 (50,524) (25,007) 25,517 (77,346) 20,000 20,000 - 20,000 20,000 20,000 - 20,000 r (30,524) (5,007) 25,517 (57,346) 470,019 470,585 566 527,931 439,495 465,578 26,083 470,585 The accompanying notes are an integral part of these financial statements. F2 Town of Fraser, Colorado Enterprise Fund Water Fund Schedule of Revenues, Expenditures and Change in Net Assets Budget (Non -GAAP) Basis and Actual With Reconciliation to GAAP Basis For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) Excess (Deficiency) of Revenues Over Expenses (Budget Basis) (149,801) 292,839 442,640 Reconciliation from Budget Basis to GAAP Basis: Capitalized assets 17,262 Depreciation (399,544) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis) (89,443) Net Assets - Beginning of Year Net Assets - End of Year 12,110,773 12,021,330 The accompanying notes are an integral part of these financial statements. F3 251,140 26,675 (398,711) (120,896) 12, 231, 669 12,110,773 2014 2013 Original and Variance Final Positive Budget Actual (Negative) Actual Revenues: Tap fees 8,000 - (8,000) 6,000 User fees 772,080 771,074 (1,006) 662,002 Water meter fees 500 14,890 14,390 16,834 Interest income 2,000 ,506 1,506 7,010 Excavation permits 200275 A�qw. 75 550 Other 2,500 1,788 11,817 Total Revenues 785,280 794V33 8,753 704,213 Expenditures: Personnel: Salaries 18 159,693 27,330 175,217 Retirement 6, 4,252 2,678 5,793 Health insurance 33,600 22,117 11,483 27,754 Travel and training 0001,579 6,421 3,016 Total 2 187,641 47,912 211,780 Commodities: Insurance 000 14,584 10,416 20,259 Supplies T53,5100 33,542 19,958 45,193 System repair and maintenance 000 53,712 83,288 44,755 Testing -- 5,000 3,225 1,775 4,141 Telephone 3,500 2,889 611 2,666 Utilities 50,000 32,675 17,325 35,629 Miscellaneous 12,000 636 11,364 4,387 Total 286,000 141,263 144,737 157,030 Contractual: Legal 85,000 64,876 20,124 41,135 Engineering 60,000 16,781 43,219 4,769 Other professional services 5,500 22,397 (16,897) 1,136 Treasurer's and bank fees 28 28 - - Professional memberships 8,000 9,070 (1,070) 6,348 Total 158,528 113,152 45,376 53,388 Other: Transfer to Other Fund 10,000 10,000 - 10,000 Capital projects and purchases 210,000 41,872 168,128 13,054 Water rights 35,000 7,266 27,734 7,821 Total 255,000 59,138 195,862 30,875 Total Expenditures 935,081 501,194 433,887 453,073 Excess (Deficiency) of Revenues Over Expenses (Budget Basis) (149,801) 292,839 442,640 Reconciliation from Budget Basis to GAAP Basis: Capitalized assets 17,262 Depreciation (399,544) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis) (89,443) Net Assets - Beginning of Year Net Assets - End of Year 12,110,773 12,021,330 The accompanying notes are an integral part of these financial statements. F3 251,140 26,675 (398,711) (120,896) 12, 231, 669 12,110,773 Town of Fraser, Colorado Enterprise Fund Wastewater Fund Schedule of Revenues, Expenditures and Change in Net Assets Budget (Non -GAAP) Basis and Actual With Reconciliation to GAAP Basis For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) Reconciliation from Budget Basis to GAAP Basis: Capitalized assets 63,257 Depreciation (426,359) Capital reserve increased by interest income 5,806 Excess (Deficiency) of Revenues Over Expenses (GAAP Basis) (104,417) Net Assets - Beginning of Year Net Assets - End of Year 13,972,844 13,868,427 The accompanying notes are an integral part of these financial statements. F4 2013 Arfiinl 179,000 618,173 28,422 3,061 2,368 831,024 188,473 6,162 24,978 663 220,276 5,410 1,411 104,533 180 257 114 111,905 1,756 156,638 4,438 162,832 10,000 10,000 505,013 326,011 60,468 (440,377) 6,153 (47,745) 14,020,589 13,972,844 2014 Original and Variance Final Positive Budget Actual (Negative) Revenues: Tap fees 7,500 120,000 112,500 User fees 679,056 678,763 (293) Management fees 29,000 29,000 - Interest income 2,500 3,116 616 Excavation permits - 325 325 Other 1,000 2,136 1,136 Total Revenues 719,056 833,340 114,284 Expenditures: Personnel: Salaries 19192,333 358 Retirement 7,1 5,600 1,540 Health insurance 28,560 26,244 2,316 Travel and training 0 1,103 3,897 Total 2 225,280 8,111 Commodities: Insurance 6,000 5,860 140 Supplies 2,500 1,497 1,003 System repair and maintenance 7,500 115,149 112,351 Testing 1,000 - 1,000 Telephone 500 254 246 Miscellaneous 3,000 188 2,812 Total 240,500 122,948 117,552 Contractual: Legal 5,000 22,814 (17,814) Engineering 10,000 2,703 7,297 Other professional services 220,502 181,908 38,594 Treasurer's and bank fees 100 - 100 Professional memberships 6,000 1,602 4,398 Total 241,602 209,027 32,575 Other: Transfer to Other Fund 10,000 10,000 - Capital Reserve payments - 13,206 (13,206) Total 10,000 23,206 (13,206) Total Expenditures 725,493 580,461 145,032 Excess (Deficiency) of Revenues Over Expenses (Budget Basis) (6,437) 252,879 259,316 Reconciliation from Budget Basis to GAAP Basis: Capitalized assets 63,257 Depreciation (426,359) Capital reserve increased by interest income 5,806 Excess (Deficiency) of Revenues Over Expenses (GAAP Basis) (104,417) Net Assets - Beginning of Year Net Assets - End of Year 13,972,844 13,868,427 The accompanying notes are an integral part of these financial statements. F4 2013 Arfiinl 179,000 618,173 28,422 3,061 2,368 831,024 188,473 6,162 24,978 663 220,276 5,410 1,411 104,533 180 257 114 111,905 1,756 156,638 4,438 162,832 10,000 10,000 505,013 326,011 60,468 (440,377) 6,153 (47,745) 14,020,589 13,972,844 Town of Fraser, Colorado JFOC Operations Schedule of Revenues & Expenses Budget (Non -GAAP) Basis and Actual With Reconciliation to GAAP Basis For the Year Ended December 31, 2014 (With Comparative Actual Amounts for 2013) 2014 2013 Expenses: Training programs Travel, meals and lodging Meals and entertainment Professional fees Engineering fees Financial services Sludge removal Other professional services Insurance Advertising Plant maintenance & repair Grounds maintenance Equipment rental Professional memberships Operating supplies Equipment purchase and repair Testing Permits ' Utilities Vehicles Miscellaneous Capital projects Payroll expenses Total Expenses Excess (Deficiency) of Revenues 3,000 2,500 200 .11,000 000 65, 20,00 0 40,000 IL 2,000 500 500 105,000 20,000 55,000 10,000 157,500 6,500 1,000 532,000 265,709 1,348,009 925 921 42 9,324 3,403 36,351 23,850 24,184 240 37,370 206 177 42,656 8,640 40,262 160 155,898 6,725 634 153,059 234,933 779,960 2,075 1,579 158 1,676 11,597 100 28,649 (3,850) 10,816 260 2,630 1,794 500 323 62,344 11,360 14,738 9,840 1,602 (225) 366 378,941 30,776 568,049 515 654 3,981 4.904 40,040 2,832 30,150 367 39,067 81 79 83,078 1,332 36,224 6,265 133,662 6,546 770 220,438 219,613 830,598 Over Expenses (Budget Basis) (514,600) (160,414) 354,186 (201,689) Reconciliation from Budget Basis to GAAP Basis: Capital reserve reduced by capital expenses 173,986 220,438 Capital reserve increased by interest income (13,572) (16,096) Operating reserve increased by interest income - (2,653) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis) The accompanying notes are an integral part of these financial statements. F5 Final Budget Original and Variance Final Positive Budget Actual (Negative) Actual Revenues: Other revenue 2,000 - (2,000) JFOC operating charges 816,009 605,974 (210,035) 610,160 Interest revenue 15,400 13,572 (1,828) 18,749 Total Revenues 833,409 619,546 (213,863) 628,909 Expenses: Training programs Travel, meals and lodging Meals and entertainment Professional fees Engineering fees Financial services Sludge removal Other professional services Insurance Advertising Plant maintenance & repair Grounds maintenance Equipment rental Professional memberships Operating supplies Equipment purchase and repair Testing Permits ' Utilities Vehicles Miscellaneous Capital projects Payroll expenses Total Expenses Excess (Deficiency) of Revenues 3,000 2,500 200 .11,000 000 65, 20,00 0 40,000 IL 2,000 500 500 105,000 20,000 55,000 10,000 157,500 6,500 1,000 532,000 265,709 1,348,009 925 921 42 9,324 3,403 36,351 23,850 24,184 240 37,370 206 177 42,656 8,640 40,262 160 155,898 6,725 634 153,059 234,933 779,960 2,075 1,579 158 1,676 11,597 100 28,649 (3,850) 10,816 260 2,630 1,794 500 323 62,344 11,360 14,738 9,840 1,602 (225) 366 378,941 30,776 568,049 515 654 3,981 4.904 40,040 2,832 30,150 367 39,067 81 79 83,078 1,332 36,224 6,265 133,662 6,546 770 220,438 219,613 830,598 Over Expenses (Budget Basis) (514,600) (160,414) 354,186 (201,689) Reconciliation from Budget Basis to GAAP Basis: Capital reserve reduced by capital expenses 173,986 220,438 Capital reserve increased by interest income (13,572) (16,096) Operating reserve increased by interest income - (2,653) Excess (Deficiency) of Revenues Over Expenses (GAAP Basis) The accompanying notes are an integral part of these financial statements. F5 The public report burden for this information collection is estimated to averaee 380 hours annually. Financial Planning 02/01 Form # 350-050-36 FORM FHWA-536 (Rev. 1-05) PKEVIOUS EDITIONS OBSOLETE (Next Page) (31 CBD28E-9CB8-4B21-9366-E510C916BBB3} City or County: Town of Fraser LOCAL HIGHWAY FINANCE REPORT YEAR ENDING: December 2014 This Information From The Records Of (example - City of _ or County of Prepared By: Nat Havens nhavens@town.fraser.co.us Town of Fraser, Colorado Phone: 970-726-5491 x206 I. DISPOSITION OF HIGHWAY -USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. Local B. Local C. Receipts from D. Receipts from ITEM Motor -Fuel Motor -Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection exenses 3. Minus amount used for nonhi hwa oses 4. Minus amount used for mass transit 5. Remainder use or i wa a oses 11. RECEIPTS FOR ROAD AND STREET PURPOSES HI. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway -user taxes 1. Capital outlay from page 2 37,556 a. Motor Fuel from Item I.A.S. 2. Maintenance: 197,376 b. Motor Vehicle from Item I.B.5. 3. Road and street services: c. Total a.+b. a. Traffic control operations 16,667 2. General fund appropriations 1,071,903 " b. Snow and ice removal 310,162 3. Other local imposts from page 2 162,206 c. Other 0 4. Miscellaneous local receipts from page 2 5 952d. Total a. through c. 326,829 5. Transfers from toll facilities 0 4. General administration & miscellaneous 56,393 6. Proceeds of sale of bonds and n7tes:5. Highway law enforcement and safety 406,188 a. Bonds - Original Issues 0 6. Total 1 through 5 1,024,342 b. Bonds - Refunding Issues 0 B. Debt service on local obligations: c. Notes 0 1. Bonds: d. Total a. + b. + c. 0 a. Interest 55,035 7. Total 1 through 6 ,240,061 b. Redemption 210,000 B. Private Contributions 0 c. Total (a.+ b. 265,035 C. Receipts from State government 2. Notes: from page 2 49,316 a. Interest 0 D. Receipts from Federal Government b. Redemption 0 from a e 2 0 c. Total (a.+ b. 0 E. Total recei is (A.7 + B + C + D 1289,377 3. Tota l .c + 2.c 265,035 C. Payments to State for highways 0 D. Payments to toll facilities 0 E. Total disbursements A. + B.3 + C + 77 LOCAL HIGHWAY DEBT STATUS (Show all entries at par) :)pening Debt Amount Issued Redemptions Closing Debt A. Bonds Total 1,940,000 210,000 1,730,000 1. Bonds Refundin Portion B. Notes (Total) 0 V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance B. Total Recei is . Total Disbursementj D. Ending Balance E. Reconciliation 1,289 377 1,289 377 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PKEVIOUS EDITIONS OBSOLETE (Next Page) (31 CBD28E-9CB8-4B21-9366-E510C916BBB3} A.3. Other local imposts: A.4. Miscellaneous local receipts: D. Receipts from Federal Government 1. FHWA from Item I.13.5. 2. Other Federal agencies: a. F egt Servicdqlk a. Property Taxes and Assessments 80,243 a. Interest on investments 592 b. Other local imposts: b A b. Traffic Fines & Penalities 0 1. Sales Taxes 66,954 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 15,009 g. Other Misc. Receipts 5,360 6. Total 1. through 5. 81,963 h. Other 0 c. Total a. + b. 162,206 (Carry forward to pa e 1) i. Total a. through h. 5,952 (Ca forward to page 1) 4,420 g. Total a. through f. 0 ITEM I AMOUNT I ITEM I AMOUNT I C. Receipts from State Government 1. Highway -user taxes 2. State general funds 3. Other State funds: 44,896 D. Receipts from Federal Government 1. FHWA from Item I.13.5. 2. Other Federal agencies: a. F egt Servicdqlk a. State bond proceeds b A b. Project Match D c. Motor Vehicle Registrations 4,420 Fed ransit Admin d. Other (Specify) . U.SWorps of Engineers e. Other (Specify) f Other Federal f Total a. through e. 4,420 g. Total a. through f. 0 4. Total L + 2. + 3. 49,316 3. Total (I. + 2. (Ca forward to page 1) III. DISBURSEMENTS FOR AND STREET PURPOSES - DETAIL N NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM A.I. Capital outlay: a. Right -Of -Way Costs a b 0 11648 c 1,648 b. Engineering Costs M6 c. Construction: (1). New Facilities 0 0 1,783 0 1,783 0 (2). Capacity Improvement 0 0 0 (3). System Preservation 0 26,839 26,839 (4). System Enhancement & O eration 0 7,286 7,286 (5). Total Construction 1 + 2 + 3 + 4 0 34,125 34,125 d. Total Capital Outlay Lines La. + Lb. + 1.c.5 0 37,556 37,556 (Car, forward to page 1) TOWN OF FRASER RESOLUTION NO. 2015-03-02 A RESOLUTION DIRECTING TO TOWN MANAGER TO AMEND SIGNATURE AUTHORIZATIONS FOR TOWN BANK ACCOUNTS BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO THAT: 1. That the Town Manager is hereby authorized to establish single signature authorization for the Town Manager and Mayor on all of the Town bank accounts. 2. Town Manager is authorized and directed to keep all banking signature authorizations current. 3. The Town Manager is further authorized to assign full banking access, except signature authorization, to Town personnel as determined by job duties and responsibilities. READ, PASSED ON ROLL CALL VOTE, AND ADOPTED BY THE BOARD OF TRUSTEES THIS 15th DAY OF APRIL, 2015. Votes in favor: BOARD OF TRUSTEES OF THE Votes opposed: TOWN OF FRASER, COLORADO Absent: Abstained: BY: Mayor (S E A L) ATTEST: Town Clerk TOWN OF FRASER BOARD OF TRUSTEES RESOLUTION NO. 2015-03-03 A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH FOR GEOTECH SERVICES FOR THE FRASER US 40 IMPROVEMENT PROJECT WHEREAS, the Town Board finds that the Fraser US40 Highway Improvement Project effectively leverages private improvement traffic signal projects at Rendezvous Road and First Street toward funding capacity improvements which provide significant public benefit. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO, THAT: 1. The Town Manager is hereby authorized to execute a public service contract for Geotech services for the Fraser US 40 Improvement Project to be paid from funds previously appropriated for such project, subject to approval of the final form by the Town Attorney. 2. The Town Manager is also authorized to take all steps necessary to implement the project expeditiously, including the expense of General Funds and prompt reimbursement requests in accordance with the project budget. READ, PASSED ON ROLL CALL VOTE, AND ADOPTED BY THE BOARD OF TRUSTEES THIS 15th DAY OF APRIL, 2015. Votes in favor: BOARD OF TRUSTEES OF THE Votes opposed: TOWN OF FRASER, COLORADO Absent: Abstained: BY: Mayor ATTEST: (SEAL) Town Clerk Winter Park — Fraser Valley Economic Development Targeting Remote Workers, Small Businesses and Retirees The Winter Park — Fraser Valley area is unique: • Great outdoor recreation, including Winter Park Ski Resort • Friendly, small-town community • Denver International Airport just two hours away • Sunshine Who are we targeting with existing websites? How can we target potential full-time residents with websites and other promotial material? How do others communities target remote workers and small businesses? Business Success story Why Steamboat? 'rhe right individuals come m ua International CEO moves bec %1s 1eywanttad.ii-,have from London to Steamboat apareera^dll,eMelifethe,w 11. LDMglobal nr. e. It'samuch appier fife living in - Steamboat mors.amerer so•ma:snomemkn�emiy�kadbu,ne "Malek Setiomaao wnxou C [� yeslpccom/buslness_relocatl on_durangol Neves L Media y1 Video Gallery OR en SIpPn In Steunhpel Spdrga FeWuary Ie, 1015 aimna arenem eownrownsrtememr Relocate y. Mercury Payment Systemswas feurMed in Durango in 2W I. Tlep keaf nzfountle ,--d Marc Ka[rwas simple: fake ativantage W the sr,—Ir Internet credit card processingbyembeddhepaymentsi�Mthepdn f,A,(P2systems d---d-- ­acrd enabling l«al dsell thus utiansercu .Mry' i - rold, make iteasyfor merthants, acrd go m marketesclusively with paMers� 5[artingand grmvirrg a haziness is nevereasy, but bang in Durango helped. Merarywasableto attract Iccal furdingfmm Region � 9 when hanks still mmitleretl Me tooriskytom m.— hireahighyualityworkfarce beally. The mmpany muldalsp a„�e 5l wt5 re<n�arat�� se osophiseicated local m� merrhantsin downtown Durango aN national Fy renownetl Gusirvessessrrh as Parelli Nakural Vbrzemanzhip in nearby Pagosa Springs. As aneof Mercury's First astomers. Mark Weiler, fED of Parent said "!t was easy toworkwith Mercury becausetheywerelpcakinnpvative and addreszinga core creed that rhe larger processorshadignored' Your Relocation to Durango, Colorado Starts Here Explore Duran �o's Commercial Real Estaten, Move or Gro. Your Busl nes, �t Heaping Campanes Thriv uran o. oor oa ra rve rre xaiu rth M1ipi-emlirya ndrsbrfamiliesaM em I e a i usinesmmronmen a ve a as r an aliry Winter Park— Fraser Valley Economic Development Website and Marketing Examples — Grand County G' ❑ grandforbusiness.com/relocate-to-grand-county-colorado/ - ........... I ................ I ............ ECONOMIC DEVELOPMENT 011 FAMMIS O 11111 INIB.Y bBAND MA COMB a Relocate to Grand County, Colorado You know you want to... As Warren Mlllerfamously said about moving to the mountains, 1f you don't do it this year, you be one year older when you do." There are so many happy business owners (and employees!) in Grand County who have followed that advice into the quality of life we enjoy. If you've never set foot here, we hope you'll consider Grand County your dream destination for life and business. If you've visited to play, imagine those wide open spaces as your back yard! Either way, your first step is to contact our team at the Grand County Economic development Council. We're here to help tum your dreams into reality! ,m .Wis . Prim 5 Emall m7 o 1 yswe.f..�.o 4/9/15 C d grandforbus! ness. cam lwork-live-and-play/ ECONOMIC DEVELOPMENT Work, Lime and Play g+ shm. 0 ® -Cl More Winter Park Resort: winterparkresort.com Granby Ranch.: granhyranch.com YMCA of the Rockies: ymcarcckies, org Fraser Valley Recreation Center: fraservalleyrec.org Rocky Mountain National Parc: nps,govfromo! Hct Sulphur Springs Resort and Spa: hotsutphursprings.com Mistoily Grand CountyHistory: grandocuntyhistory.com Grand County Historical Association: Real Mountain Living, Worh, and Play Summer weather lanngs great music to the valley Quick Links Facts & Figures Business Tccls ....................................................... Business starter Kit ...................................................... Local Product Guide ...................................................... Collectively Grand ....................................................... I am Grand Site Selection Tool Map pmponies and industry Informatlon relevant to businesses In Grand county. search far bulli ings and sites for sale or tease. Map companies by Industry or city. Z Check Out the Grand County site selection Teel Sign Up for Mem Get important husln de ^` AA support,oM and even4 Information delivered right to your emall. Subscdde m mews tram Grand County Economic Development Upcoming Events 9=11 5:00 pm Grand 19 County Economic T. Development Advisory Committee meeting a Mountain Parks Electric Board Room 6,00 pm G rand 2 With several Main Streets in Grand County, excellent schools, cultural landmarks, and recreational opportunities, we're a dream destination for your business — and your life! What do our ranchers, developers, artists, restaurateurs, outfitters, manufacturers, work-from-home-ers, C _ntrepreneurs, and tradespeople have in common? -, shared lave for real mountain living, work and play. i Schools Business owners are proud to Ilve in Grand East Grand School district: egsd.org County. West Grand School District: westgrend.k12.co.us0istrictl Indian Peaks Charter School: Indianpeaksschool.org Activities g+ shm. 0 ® -Cl More Winter Park Resort: winterparkresort.com Granby Ranch.: granhyranch.com YMCA of the Rockies: ymcarcckies, org Fraser Valley Recreation Center: fraservalleyrec.org Rocky Mountain National Parc: nps,govfromo! Hct Sulphur Springs Resort and Spa: hotsutphursprings.com Mistoily Grand CountyHistory: grandocuntyhistory.com Grand County Historical Association: Real Mountain Living, Worh, and Play Summer weather lanngs great music to the valley Quick Links Facts & Figures Business Tccls ....................................................... Business starter Kit ...................................................... Local Product Guide ...................................................... Collectively Grand ....................................................... I am Grand Site Selection Tool Map pmponies and industry Informatlon relevant to businesses In Grand county. search far bulli ings and sites for sale or tease. Map companies by Industry or city. Z Check Out the Grand County site selection Teel Sign Up for Mem Get important husln de ^` AA support,oM and even4 Information delivered right to your emall. Subscdde m mews tram Grand County Economic Development Upcoming Events 9=11 5:00 pm Grand 19 County Economic T. Development Advisory Committee meeting a Mountain Parks Electric Board Room 6,00 pm G rand 2 Winter Park— Fraser Valley Economic Development Website and Marketing Examples - Winter Park & Fraser Chamber C I ❑ www.playwinterpark,com/live_wark_play_here.html W Member Sign In Chamber Info Bloc & Playground Mao ' s Willi � www.playwiriterpark.com/ecoriamic-deyelopment.htrn] Y Memlaer Sicn In Chamber Info Bloc & Playground Map JLLJ There's a variety of reasons we chose thls valley ... what' s yours? We hear all kinds of reasons as to why locals and second homeowners chose tinter Park & the Fraser Valley over other great destination resorts. From 'I came for the winter, stayed for the summer" to "everything was authentic and the people were friendly, so I decided it would be a great place to raise my family" to "my car broke down as I was passing through and I fell in love with the towns before it was fixed". As you can well imagine, there are in6 ife reasons why folks chase to live here, work here and quite often its because they live to play. This section is dedicated to help those who are considering moving here (either personally or to bring their business herei, have just moved here or play here regularly and need to get established with local services, whether one needs a maltor, trash removal, church or medical center. Economlc Development Grand County is open for business and is excited to provide the business resources and information needed to make your business successful. Whether you are new to our community or you are already a committed bus! ness owner in Grand County, we can provide you the resources, tools and data to help move your business forward. Be sure to check out Grand County Economic Development website at www.grandforbushess.com. You also may contact our Economic Development Coordinator, DiAnn Buller directly at 970.725.3129. Grand Enterprise Initiative provides PR PE, CONFIDENTIAL BUSS NESS COACHING to anyone !n Grand County that has a business idea or an established business that they would like to make a reality. Contact us today and begin the journey towards business success. You can reach Patrick Brower at 970.531.0631 or get more information at 4/9/15 3 Winter Park— Fraser Valley Economic Development Website and Marketing Examples - Steamboat Springs and Durango, La Plata County C D www.steamboatbiz.ccmlHome.aspx Business Success Story International CEO moves LDMlobal from London to Steamboat Austin.. -tom this 9"Reilly hos lived an adventurous Itle with years spent in F,— Canada, the came— and England bm he chose Steamboat Springs as home for his family RE" MORE News & Media v ul Video Gallery Vi -All Off the Slopes in Steamboat Springs February 78, 2015 , The New York Times goes oN the slopes to eyxrie the thriving dining scene in donntown Steamboat. Fal Mae 4/9/15 Why Steamboat? 'he right individuals come to us because they want to do both, have a career and live the life they want to live. Its a much happier life living in Steamboat." - Mark Satkiewicx I prasidem, Sm.ne.d "We live here, work here and play here. The quality of life is wonderful. It's easy to balance work and fun in a town with ao much outdoor activity and industry to offer." - Kent Erikeen . Kern Edkaen cydea "You can continue to run your business here very easily with close proximity to city -like services. You have access to everything that a big city would be able to offer you." C n yeslpc.com/business_relocation_durangof Your Relocation to Durango, Colorado Starts Here Explore Durango's Commercial Real Estate to Move or Grow Your Business Helping Companies Thrive Head In the. right Irection with a relocation to Colorado's stunning southwest vehe- a sophisticated business +�- cu{ture blends with a superior quality of Life Residents enjoy rich outdoor activities that Include skiing. golfing. M ITa cEowfwe I hiking, biking, rafting,fishing. hunting, off-raading and more. But it'smtjust the outdoor xtMti. that make Durango, Colorado attractive for relocating. With high-quality amenitiesfor families and employees, an outstandlmg I —i— hit, effective buslness resources and quality commercial real estate, Durango and La Plata County provide the perfect environment for great ideas. The area boasts impressive entrepreneurial success stories like Mercury Pavmentsystems: V Facebook Posts %I{The La Plata V w=. Economic Ij1 Development Alliance Professional Development for Managers wla.me%PAiii 111 MercuryCase Study Relocate Your B us l ness Expand 6 Relocate Local Business News - April 2012 Ali—Mercury Mwi ng'd-orm Mercury payment Systemswas founded in Durango in 2001. The premise of founders Jeff and Marc Katz'. was simple, take advantage of the �owth in Internet credit card processing byembedding payments into the paint of sage (POSj systems and: mak ng iacaldealerstosell thoseclarions.Mercury's lywith partners. told: make kearyfor merchants, and go W market exclusivelywith partners. staring and growing a business is neve r easy, but being In Durango helped. Mercury was able to attract local funding from Region 9 when banksstill considered Mercury too rekytu invest in, and hire a high -quaff w.rdurc Iocauy, Themmpanycould also srnedMercu�yscu,mnt sparesnatwie.eerso availablein maa,�oTeW Pork sell to sophisticated i—I merchants in downtown Durango and national ly,en—d businesses such as Parelli Natural Horsemanship in nearby Pagosa Springs. As one o£ Merrsin/s First customers, Mark Weller, CEO of Pavel Ii, said "it was easy to workwith Mercury because they were local. innovative and addressing a core need that the larger processors had ignored,' Winter Park— Fraser Valley Economic Development Website and Marketing Examples — Driggs, Teton Valley, Idaho A4k COME BUILD IN THE BRIGGS URBAN RENEWAL DISTRICT Within this six -block district in the hart of dnwnmwn Driggs, rhe city olfcrs sttbsidixed development costs to promote infill and busito. dcrclapmcnt TAKE ADVANTAGE OF THE DRIGGS MICRO -LOAN PROGRAM Driggs has established a competitive micro -loan ftmd to provide capital to small businesses. GROW YOUR BUSINESS IN THE BRIGGS BUSINESS INCUBATOR Capitalize on below-market subsidized rcpt in the Driggs Busi- ness Incubator industrial space, located coureniendy along State Highway 33, OTHER HANDS-ON SERVICES OFFERED BY THE ` "AGGS TEAM: - Profile of available city properties - Rctad leakage analysis - New -business pemirting assistance - Fiber optic lines throughout downtown Driggs - Full-service local airport - Professional husinem support services - Market ow twti and SWOT analysis for targeted base industries - Teton County F—noetic Development Plan cammunny Asaociati .n Tema Vasey 6eisness Uewelupmertt Center tedndd�ttfa P„v�s a. =um� � � w�: � lrAtmihlrlkR1tlmto[ 4/9/15 5 Winter Park— Fraser Valley Economic Development Website and Marketing Examples — Driggs, Teton Valley, Idaho But don't just take our word for it... check out why these business owners Dig Driggs: MADE LOCALLY, SHIPPED GLOBALLY We decided to locate our business in Driggs because we would rather live here than anywhere else. Irving near to mosntains and epic skiing is important to us personally, and for our ski binding business. Just minutes from Driggs is great resort and backcaunthy skiing, Nordic skiing, hiking, mountain biking, fishing, and hunting. Rmu acrd real ertam are very of ford- able for both residential and cmistrrer d spamr, and wages gv fara6er bene than in hater resort mums. And despite our off-rho-heareo-path location, it d—.'t cost us any more to ship — prodri s, which we do daily. -Chris Valiante, Owner, Twe"Two Designs OVIN'THE LOCAVORE SCENE The primary reason we chose m locate 460 Brad in Driggs is that Driggs is where we want to live. Tema Ynffig, Idabq Ines a very active laraf frhod with kdr of grunt reaarrraatq aevzand CSA.s, and a mF-u farmer's market, wbieb sweater ottr strong local csrsmrner base r,6at it auganenred by visitors enjoying ovr national parks, powder, and trans. Our location also enables us to msdy deliver fresh bread to aur Jackson Hole, Wyoming, cos - mune. 365 days a year. Overhead costs in Driggs are, quite reasonable and Driggs offers a strong lahor pool, helping m Snd committed, hard-warlr- ing c riployers who share our love of the arca. Driggs also has many other complementary small businesses such as graphic designers, web developers, photographers, and marketing consultants. -Ty Mack, Owner, 460 Bread RELOCATE 'r '1,TE Altergrawi ng Recap 11,1 my parmcr and I decided to mane to the Temno m be closer to family and the mountains. Within days of arriving in Teton Valley, I was put in touch with the Dig Driggs Tcaun. A Few days after that, I signed a lease for a 400�quare-Foot workspace with ery-subsidized rent, and was barkworking at my sewing machine. I was inphessed at how fast and belpful everyone was with getting Recap Hats established in Teton Valley. The town was amazing to work with. They helped with getting my business license, and assisted with public exposure in the newspapers. Reaap hats bas been growing sreadify since reiruating m Diggs, and there has been great supportfnans rbe room ural resirlenu every step fthe may. -Anneka Herndon, Owner, Recap Hats TELECOMMUTE AND LIVE THE DREAM After scouting locations around the world, we chose Driggs and have never looked back. The epic powder and biking and hiking trails offer endless cmimment, and the proximity to Yellowstone and Grand Teton national parks turn on—na-a-lifetime experiences into everyday occur- rences. Excellent infras¢rucmm allows me to seawfessly tekcommare to Harley-Davulsvn bac& East wbrfe the active lifestyle in Driggs keeps my wife bury m a pbysical rberrapist. Scrong comununity values and small-town chat -m keep ns grounded, and with so many other young, active couples and Families, we arc never far from adventure or a relaxed get-together. Now, with our thriving baby boy and burgeoning winery, Tetonic Wines, we arc thrilled to call Driggs home. -Jim Sadauckas, Senior Project Engineer, Harley-Davidson Motor Company and Co -Owner of Tetanic Wines Pictured with wife Kelly (Streubel Physical Therapy) & ton Casimir 4/9/15 6 Winter Park— Fraser Valley Economic Development Seasonal Taxable Sales Comparison ■ Winter Park Taxable Sales Quarterly Taxable Sales Winter Park, 2007-2013 Sorfetl aY _., Qya 1, Soler, High . tan 2007 2008 2008 2010 $40,000.000 $38 000,000 $36.000.000 $34.000,000 $32.000000 $30.000.000 $26.000.000 $26.000000 $24.000.000 $22.000.000 n $20.000,000 $10000000 $16.000.000 $14.000,000 $12.000000 $10.000.000 $8.000,000 $6000,000 $4.000.000 $2.000,000 Grand County Taxable Sales by Town Quarterly Taxable Sales by Town, 2007-2013 5 -ted by Average QuarteNy Sales, High to L- 2007 2008 2009 2010 2011 2012 2013 Urilnc. Grand County V ao 000000° J'.. Granby s $I x,000 uuo ao m sm,000.000 Fraser ooa 5.-- 2011 2012 2013 Grand Lake w w rsm,000 000 GRAND a�a.�.ma�0000000a0000000aa 000 ooa p� E 11/5/2034 58 4/9/15 Fraser Quarterly Taxable Sales on same scale as WP ff, N Fraser does not have any where near the benefit from taxable sales during the winter as WP. Q2 is lowest — April, May, June, Fraser's sales taxes already reflect year-round activity, not just winter skiing. Winter Park— Fraser Valley Economic Development Quarterly and Monthly Sales Tax Comparison Fraser Sales Taxes by Quarter, Simi [ar to RRC Approach 56M.00C 5-91.000 5491.000 $300,000 s2w.000 011 Oa. 43 QA Fraser Sales Taxes by Month Sd.a,CCC 5200,000 5150,000 SLOO,000 BUM �O Jan Feb Mar Apr May Jum Jul Aug Sep[ Oct Now Dec 4/9/15 Fraser's highest sales tax revenues are in August with revenues in July close to those in the winter months. 2011 Fraser already has strong summer activity, and we can —2013 build on that. —2013 —2014 :U: 1 1012 2013 —'2019 Economic development can target • Weekend tourists • Full -week tourists • Full-time residents Which of these would be most beneficial for Fraser? How can we start reaching out to them now? Email from Jane Mather: On a related issue, I am very interested in the Town of Fraser hosting a community forum / world cafe with the Town Board on what the community believes would be the best ways to make US -40 through Fraser more attractive. April or May before we all get busy again would be a good time. This forum would likely lead to lots of good ideas. It would show our interest in community opinions. We could get a good start without costly consultants. We have had $100,000 in business enhancement money we didn't spend last year, may be the community has some ideas on how to spend this money since we haven't had much luck getting ideas from businesses. Also, I've spoken with one landscape company owner who would be interested in sharing her thoughts, for free, on how we could use more landscaping to improve Fraser's appearance. Maybe others would like to share some ideas. Maybe that could be part of the RFP process for some basic landscaping improvement based on what we learn from the community forum. Along the same lines, I would strongly disagree with Jeffs statement in the 3/13 email. And Community Revitalization? I would propose that we leave this initiative til later in the year. We have enough in the hopper already. In the meantime, I think the economic strategy discussions will help us continue to frame this process. During this time, Catherine will be working on some concepts and drafting some RFP language. With so much construction going on, we are going to need something to cheer us up as we drive through Fraser. I agree with many of our constituents that making Fraser more attractive would make it more appealing to visitors and new businesses. I would be very interested in our Town Board considering some of "the low -hanging fruit of economic development projects" that seem like good ideas no matter what economic development strategies we choose to follow. Can we please add this topic to the agenda for the April 15 meeting? Maybe with some possible dates for a community forum / world cafe if there is interest? Would Jane Hansberry be interested in helping out again? Jane Jane Mather Town of Fraser Board Trustee MEMO TO: Mayor Smith and the Board of Trustees FROM: Catherine E. Trotter, AICP, Town Planner DATE: April 15, 2015 SUBJECT: Fraser Arts Committee MATTER BEFORE BOARD: Staff would like to explore the creation of an arts committee to further public art in the Town of Fraser. ACTION REQUESTED: Discussion only. EXECUTIVE SUMMARY: Staff is proposing that Fraser establish an Arts Committee (or Commission) for the purpose of promoting public art in public spaces, ensuring a well rounded programs and promoting community support. BACKGROUND: In 2011, the Colorado legislature passed HB11-1031, encouraging the formation of Creative Districts in communities, neighborhoods or contiguous geographic areas, for the purposes of: • Attracting artists and creative entrepreneurs to a community, infusing new energy and innovation, which in turn will enhance the economic and civic capital of the community; • Creating hubs of economic activity, thereby enhancing the area as an appealing place to live, visit and conduct business, as well as create new economic activity; • Attracting visitors; • Revitalizing and beautifying communities; • Providing a focal point for celebrating and strengthening a community's unique identity; • Showcasing cultural and artistic organizations, events and amenities; • Contributing to the development of healthy communities; and • Improving the quality of life of the State's residents. Grand Creatives is the countywide effort to promote arts and has the following mission: The mission of Grand Creatives is to support regional partnerships by expanding the creative industries, through education, communication, and marketing, in order to improve quality of life, foster a sense of place, and stimulate economic development. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com There is evidence that promoting creative opportunities in a community has significant positive cultural and economic impact and has been effectively used as an economic and community development tool. Fraser initiated public art at Goranson Station with the creation of the bike chain shelter and the culvert planters. We are currently working on additional creative amenities at that site. We hoped that the shelter might become a catalyst for future public arts projects in Fraser. In January 2015, the Town Planner was approached by several local citizens about pursuing additional public art installations. The amenities at Goranson Station have truly transformed the property. It was an unfortunate, barren, vacant lot and we have created life, beauty and art and made this Town -owned parcel into a focal point in Town. Among other things, public art creates dialogue about subject things. Different people have different perspectives about beauty. Is Goranson Station beautiful? The answer depends on the eye of the beholder. Likewise, many years ago the Town invested significant resources in the Walk Through History Park. At times in recent years, others have looked back and wondered how the Town could have invested so much in one artist at one location. This highlights the value of an Arts Commission. A diverse group of community stakeholders that promote art, and diversity could help better balance various community interests. And, help promote public art throughout the community. With additional public art projects on the horizon and the subjective nature of ART, perhaps the time is ripe to create a group that can help foster these projects. We envision that this creative group, appointed by the Town Board, will unite their energies towards fostering specific arts projects and opportunities in public spaces in Fraser and make recommendations to the Town Board. We would anticipate that this would be a volunteer based group, with staff support. Future expenditures would be based on available General Fund appropriations and/or grants. Finally, this would be an advisory group with decision making authority remaining with the Town Board. RECOMMENDATION: Provide Staff with direction on creating an arts committee to further public art projects and opportunities in Fraser. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com Economic Develop Strategies and Action Plans Jane Mather, April 15, 2015 Possible Goals and Actions for Next Steps 1) Attract Full -Time Residents a) Types i) Retirees ii) "Location -Neutral" Workers b) Easy Steps i) Target on Website ii) Material at Chamber and at Events c) Harder Steps i) What would make our community more attractive for people to live here - survey what is really important? ii) Can we achieve it d) Contact Community i) LaPlata County / Durango ii) Teton County, Idaho / Driggs 2) Attract Full -Week Visitors a) Easy Step - Provide Sample Itineraries i) Make it even easier ii) 36 hours in ... - 6 days in Grand County b) Target to Audiences i) History Buffs ii) Famililes with Younsters iii) Families with Teen Agers iv) Outdoors on a Budget 3) Make US -40 Through Fraser More Attractive a) Easy Step - Community Forum vjdwo b) Harder Step i) Consultant - Urban Planner? ii) Consultant - Economic Developer? 4q) IV.Ao4SkjWr..M td lUY1=�l�. F�OCR�ONE SLEMfsti i_ xa.. Y►... -r a u/d t "E f0 PFC�FAiE • 4a�rs.ti4ra. - ONO ll-�E IX L0.EAN U Name Your Planner wnnEo vAgK ADVEMUSI About Our AEeo W, W. MfiV0 e. Summer Acl,d- p—T— pmr..,... 0..,a..u.. 0— o...,, 0___ c c _ o=