HomeMy Public PortalAbout4a TOF 2016 Preliminary Audited FS 4.17.17Town of Fraser
Fraser, Colorado
Financial Statements
December 31, 2016
PRELIMINARY DRAFT
i
Town of Fraser, Colorado
Financial Report
December 31, 2016
Table of Contents
Page
INDEPENDENT AUDITOR'S REPORT A1 – A3
Management’s Discussion and Analysis B1 –B11
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets C1
Statem ent of Activities C2
Fund Financial Statements:
Governmental Funds:
Balance Sheet C3
Reconciliation of Governmental Fund Balance to Governmental
Activities Net Assets C4
Statement of Revenues, Expenditures and Changes in
Fund Balances C5
Reconciliation of Net Change in Fund Balances to Change in Net
Assets of Governmental Activities C6
Business-Type Funds:
Statement of Net Assets -Enterprise Funds C7
Statement of Revenues, Expenses and Changes in Net Assets -
Enterprise Funds C8
Statement of Cash Flows -Enterprise Funds C9
Fiduciary Fund:
Statement of Fiduciary Assets and Liability C10
Statement of Changes in Fiduciary Assets and Liabilities C11
Notes to the Financial Statem ents D1 – D25
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
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ii
Town of Fraser, Colorado
Financial Report
December 31, 2016
Table of Contents
(Continued)
Page
Required Supplementary Information (continued):
Schedule of Expenditures and Transfers -Budget (GAAP Basis)
and Actual
General Fund E3
Special Revenue Fund -Conservation Trust Fund E4
Special Revenue Fund –Restricted Revenue Fund E5
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget (GAAP Basis) and Actual
Debt Service Fund F1
Capital Projects Fund -Capital Equipment Replacement Fund F2
Schedule of Revenues, Expenditures and Changes in Net Position -
Budget (Non-GAAP Basis) and Actual W ith Reconciliation to GAAP Basis
Enterprise Fund -Water Fund F3
Enterprise Fund -Wastewater Fund F4
Agency Fund -JFOC Fund F5
Annual Schedule of Revenues and Expenditures for Roads, Bridges
and Streets F6 – F10
PRELIMINARY DRAFT
McMahan and Associates, l.l.c.
Certified Public Accountants and Consultants
Web Site: www.mcmahancpa.com
Chapel Square, Bldg C Main Office: (970) 845-8800
245 Chapel Place, Suite 300 Facsimile: (970) 845-8108
P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com
Member: American Institute of Certified Public Accountants
Paul J. Backes, CPA, CGMA Avon: (970) 845-8800
Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996
Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481
A1
M
&
A
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Town Board
Town of Fraser, Colorado
We have audited the accompanying financial statements of the governmental activities, business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Fraser (the
“Town”),as of and for the year ended December 31, 2016, 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, 2016, 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.
PRELIMINARY DRAFT
To the Honorable Mayor and Town Board
Town of Fraser
A2
Other Matters
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis in Section B be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the Management’s Discussion and Analysis in Section B in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
managem ent about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
The budgetary comparison information in section E is not a required part of the basic financial statements
but is supplementary information required by accounting principles generally accepted in the United
States of America. The budgetary comparison information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
financial statement or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated in all material respects in relation to the financial statements as a whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
com prise the Town’s financial statements as a whole. The individual fund budgetary comparisons found
in Section F and the Local Highway Finance Report are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The individual fund budgetary comparisons
found in Section F and the Local Highway Finance Report are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the
financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole.
McMahan and Associates, L.L.C.
April 17, 2017
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MANAGEMENT’S DISCUSSION AND ANALYSIS
PRELIMINARY DRAFT
B1
Town of Fraser, Colorado
Management’s Discussion and Analysis
December 31, 2016
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, 2016.
The Town provides a high level of local government service and availability to the community including
operation of the Town’s water and wastewater systems, a public works department that provides for street
maintenance, snow removal and management, park and open space preservation, public building and
facility management and maintenance. Our planning department provides support for both our
business/economic sectors in addition to community development support, all while maintaining our small
town character in the bigger mountain resort community that we are a part of. The Town currently acts as
the manager of the Upper Fraser Valley W astewater Treatment Facility –providing both the operational
expertise and financial management of the facility for the three member organizations who share the
plant. In addition the Town participates in a joint Fraser/Winter Park Police Department and a joint Winter
Park/Fraser/Granby Building Services Department.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements include three components: 1) government-wide
financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements:The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all Town assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference between the two reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Town is improving or deteriorating.
The Statement of Activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (i.e. uncollected revenues such as grants or earned but unused vacation leave.)
Both of the government-wide financial statements distinguish functions of the Town that are principally
supported by taxes and intergovernmental revenues (governmental activities). The governmental
activities of the Town include general government, public safety, public works, and culture and recreation.
The business-type activities of the Town include water production, water distribution system operation
and maintenance, and the operation and maintenance of the Town’s wastewater collection system.
The government-wide financial statements can be found on pages C1 and C2 of this report.
Fund financial statements:A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Town, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into two categories: governmental and
proprietary funds.
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B2
Governmental funds:Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. The expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities. The fund financial statements for
the governmental funds are shown on pages C3 and C5.
The Town’s Budget includes the following governmental funds:
General Fund (GF), which provides for the general functions and services such as
administration, planning, law enforcement, streets and properties.
Capital Asset Fund (CAF), which is intended to fund long term maintenance of capital assets
(streets, buildings, parks, trails, etc). The CAF is consolidated with the GF in the financial
statements.
Restricted Revenue Fund (RRF), which is funded by a dedicated sales tax to be used for
transportation,trails, and capital project expenditures.
Debt Service Fund (DSF), which provides for bonded debt service payments.
Conservation Trust Fund (CTF), which is funded by lottery proceeds and provides for open
space and recreational related capital projects.
Capital Equipment Replacement Fund (CERF), which provides for vehicle and heavy
equipment purchases.
The Town adopts an annually appropriated budget for all governmental funds. A budgetary comparison
statement has been provided for the General Fund, Restricted Revenue Fund, Conservation Trust Fund,
Debt Service Fund and Capital Equipment Replacement Fund to demonstrate compliance with the State
budget statutes. These are included in Sections E and F.
Proprietary funds:The Town maintains two proprietary funds commonly known as enterprise funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The Town uses an enterprise fund to account for its water
operations and one to account for its wastewater operations, which was established on December 31,
2009 by the dissolution of the Fraser Sanitation District.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for each of the
business-type services provided by the Town.
The Town’s Budget includes the following enterprise funds:
Water Fund (WF), an enterprise fund for the Town’s water utility.
Wastewater Fund (WW F),an enterprise fund for the Town’s wastewater utility.
The basic proprietary fund financial statements can be found on pages C7 through C9 of this report. The
Town also presents a budgetary comparison for its proprietary funds on pages F3 and F4.
Fiduciary fund: As managers of the Upper Fraser Valley Wastewater Treatment Plant (“UFVWWTP”),
the Town operates the Joint Facilities Fund (“JFF”) as a fiduciary fund to account for the operations and
maintenance of the facility along any capital expenditures related to the plant.
JFF Operations and Maintenance (O&M)and the JFF Capital Replacement Reserve (CRR),
both of which provide for operations and capital projects at the W astewater Treatment Plant.
The JFF activity is found on pages C10, C11,and F5.
PRELIMINARY DRAFT
B3
Overview of the Financial Statements (continued)
Notes to the Financial Statements:The Notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The Notes to
the Financial Statements can be found at Section D of this report.
The largest portion of the Town’s assets are reflected in the investment in capital assets (i.e. land, streets,
buildings, improvements, and equipment). Capital assets account for 71%of the total assets of
$40,421,391. The Town uses these assets to provide services to its citizens. The Town has to pay
liabilities out of the remaining liquid assets. The Town also has assets that are considered restricted for a
variety of purposes. Accordingly, these assets are not an available source for payment of future
spending, other than as restricted. The Town is showing the detail of restricted net position below on
page B4 and also on page D19 of the footnotes.
Government-wide Fund Analysis
Financial Highlights
On a short term view, the Town’s governmental fund balances increased by $404,408 in 2016.
The Town’s General Fund’s fund balance increased by $426,901.
On a long-term view (including depreciation and excluding capital outlay, etc.) the Town had a 1%
$483,167) increase in net position from $38,265,648 to $38,748,815.
“Net Position” for the Town refers to both the governmental and business-type (Water Fund (W F)
and W astewater Fund (WWF)) activities. The business-type activities (W F & WWF) had an
increase in net position of $155,803, while the governmental activities had an increase in net
position of $327,364.
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 see the corresponding
schedules for depreciation and additions to capital assets (capital outlay). It’s important to review
the depreciation schedule and compare it to the age of the assets being depreciated. Annual
depreciation expense for streets exceeds $500,000 and there is no designated revenue source or
reserves associated with this asset. Annual depreciation expense on water and wastewater
assets exceeds $800,000,with over $500,000 of that depreciation relating to underground
utilities. Over half the Town’s underground utilities have exceeded their depreciation life cycle.
At December 31, 2016, The Fraser Town Board has many committed reserves in its General
Fund and both of its Enterprise Funds, along with a reserve for unforeseen Joint Facility
emergencies. These reserves will allow the Town to meet its short term obligations for safe,
reliable and sustainable water and wastewater systems. Available resources will be freed up in
the 2017 Budget to address annual street maintenance as all long term bonded indebtedness will
be paid for from the Debt Service Fund’s reserves.The Town continues to allow for additional
growth in utilities and streets, while the issue of the cost of maintenance reflected by service fees
and GF revenues remains a community concern.
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B4
Government-wide Fund Analysis (continued)
The Town’s restricted net position for 2016 is shown in the following schedule:
Ba la nce Ba la nce
1/1/16 Ad diti ons De leti ons 12/31/16
General Fund:
Fees in lieu of Park 6,379$ - - 6,379
Affo rdabl e hous ing impac t fee 135,426 - - 135,426
Emergenc y res erves 122,000 - (7,000) 115,000
Debt Service Fund reserves :
Nex t year's pay ment s 300,000 - - 300,000
Cons ervation Trus t Fund 12,035 - 6,537 18,572
Res tricted Revenue Fund - 547,624 (541,635) 5,989
Wastewat er Fund
Operat ing reserve 47,373 572 - 47,945
Capi tal replac em ent res erve 713,853 3,807 (64,130) 653,530
1,337,066$ 552,003 (606,228) 1,282,841
The following shows the Town’s net position for 2016:
2016 2015 2016 2015 2016 2015
As sets:
Current a nd other a ssets 5,210,985$ 4,851,780 6,595,427 5,733,927 11,806,412 10,585,707
Capital as sets 9,088,092 9,550,849 19,526,887 20,235,422 28,614,979 29,786,271
Total Assets 14,299,077 14,402,629 26,122,314 25,969,349 40,421,391 40,371,978
Lia bilitie s:
Oth er l iabilities 606,731 661,627 37,875 40,713 644,606 702,340
Long-te rm l iabilities
outstanding 818,582 1,202,908 - - 818,582 1,202,908
Total Lia bilitie s 1,425,313 1,864,535 37,875 40,713 1,463,188 1,905,248
De ferred Inflow s of Re sour ces:
Property taxe s 209,388 201,082 - - 209,388 201,082
Total Deferred Inflow s
of Re sources 209,388 201,082 - - 209,388 201,082
Ne t Pos ition:
Net i nves tm ent i n capital as sets 8,269,510 8,347,941 19,526,887 20,235,422 27,796,397 28,583,363
Res tricted 581,366 575,840 701,475 761,228 1,282,841 1,337,068
Unres tri cted 3,813,500 3,413,231 5,856,077 4,931,986 9,669,577 8,345,217
Total Net Position 12,664,376$12,337,012 26,084,439 25,928,636 38,748,815 38,265,648
Tow n of Fraser's Ne t Position
Go ve rnmental Bus ine ss-type
Ac tivities Ac tivities Tota l
PRELIMINARY DRAFT
B5
Government-wide Financial Analysis (continued)
At the end of the current fiscal year, the Town is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business-
type activities.
The following chart is a summary of the Town’s Change in Net Position:
2016 2015 2016 2015 2016 2015
REVENUES:
Pr ogram re ve nues :
C harges for s ervi ces 152,406$ 157,253 1,650,886 1,499,494 1,803,292 1,656,747
Op erating grants
and contr ibutions 146,028 178,946 56,832 100,971 202,860 279,917
Capital grants
and contr ibutions - 1,394,458 540,000 307,900 540,000 1,702,358
Ge neral reve nues :
Pro perty taxe s 201,310 277,410 - - 201,310 277,410
Sa les a nd Use ta xe s 3,152,780 2,176,821 - - 3,152,780 2,176,821
Oth er taxe s 76,925 80,063 - - 76,925 80,063
Interest a nd other revenue 175,303 112,250 37,456 16,769 212,759 129,019
Total Reve nue s 3,904,752 4,377,201 2,285,174 1,925,134 6,189,926 6,302,335
EX PENS ES :
Ge neral government 1,665,945 1,059,341 - - 1,665,945 1,059,341
Culture and recreation 50,183 43,696 - - 50,183 43,696
Public safety 441,048 430,045 - - 441,048 430,045
Public works 1,388,797 3,776,060 - - 1,388,797 3,776,060
Interest 51,415 70,642 - - 51,415 70,642
Wa te r - - 1,090,771 904,884 1,090,771 904,884
Wa stewater - - 1,018,600 961,371 1,018,600 961,371
Total Expenses 3,597,388 5,379,784 2,109,371 1,866,255 5,706,759 7,246,039
Cha nge in Net Position
Be fore Tr ansfers 307,364 (1,0 02,583) 175,803 58,879 483,167 (943,704)
Transfe rs in (out)20,000 20,000 (20,000) (20,000) - -
Cha nge in Net Position 327,364 (982,583) 155,803 38,879 483,167 (943,704)
Ne t Position-Jan 1 12,337,012 13,319,595 25,928,636 25,889,757 38,265,648 39,209,352
Ne t Position - December 31 12,664,376$12,337,012 26,084,439 25,928,636 38,748,815 38,265,648
Total
Tow n of Fraser's Change in Net Posi tion
Go ve rnmental Bus ine ss-type
Ac tivities Ac tivities
Governmental activities: Governmental activities increased the Town’s net position by $327,364 during
2016, as compared to a decrease in net position of $982,583 during 2015. The following are the major
elements of the change in net position of governmental activities from December 31, 2015 to December
31, 2016:
During 2015, the Town expended $2.2 million for street projects. Of this amount, $1.1 million was
funded through a Colorado Department of Transportation RAMP grant recognized as revenue
during 2015.
During 2016, the Town didn’t undertake any large construction projects so the increase in net
position is expected.
A newly voter elected 1% Sales Tax increase became effective on January 1st, 2017.
PRELIMINARY DRAFT
B6
Government-wide Financial Analysis (continued)
The following is a graph of the Town’s governmental activities revenues by source for 2016.The Town
continues to be challenged by its dependence on the very volatile resort based sales tax revenues.
Fortunately,the Town has the community’s grocery, hardware, and department stores within its municipal
boundaries. The Town will continue to help the local business community attract and develop a more
varied mixture of vendors appealing to both the community’s residents and its resort vacationers. A new
grocery store is expected to open in the neighboring community of Winter Park in the third or fourth
quarter of 2017. The Town anticipated the estimated potential sales tax loss of this competing grocery
store in its 2017 budget.
Cha rges f or
servi ces ,
$152,406
Oper ating Grants
& Contributions ,
$146,028
Ca pi ta l Grants
and Contributions
(excl uding
assets ), $-
Property Taxes ,
$201,310
Sa les and Us e
Ta x, $3,152,780
Other Ta xes ,
$76,925
Inter es t a nd
other revenue,
$175,303
The following is a graph of the Town’s governmental activities expenditures by function for 2016.
Gener al
government,
$1,665,945
Cul ture a nd
recreation,
$50,183
Publ ic s afety ,
$441,048
Publ ic works ,
$1,388,797
Inter es t,
$51,415
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B7
Government-wide Financial Analysis (continued)
Business-type activities: Business-type activities (water and wastewater, collection and treatment)
resulted in an increase in the Town’s net position of $155,803. Key elements of this change are as
follows:
Within the Water and Wastewater Funds and in the Town’s portion of the JFF assets,
depreciation expense on capitalized assets of $841,205 accounted for 40%of total operating
expenses.
Charges for our customer’s water and wastewater services accounted for 96%of total operating
revenues.
The following is a graph of the business-type revenues by source for 2016.
Cha rges f or
services ,
$1,650,886
Oper ating Gr ants
& Contributions,
$56,832
Capi ta l Gr ants a nd
Contributions,
$540,000 Inter es t and other
revenue, $37,456
The following is a graph of the business-type expenses by function for 2016.
Personnel ,
$483,839
Commodi ti es ,
$406,357
Contractua l ,
$332,143
Sys tem
developmen t and
other, $45,827
Depreciation,
$841,205
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.
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B8
Financial Analysis of the Town’s Funds (continued)
Governmental funds: The focus of the Town’s governmental funds is to provide information on near-
term inflows (revenues), outflows (expenditures), and balances of spendable resources. Such
information is useful in assessing the Town’s financing requirements. In particular, fund balance may
serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund
balances of $4,414,404;the funds increased $404,408 from the prior year’s ending balances. The
Town’s governmental fund balances for 2016 and the past two years are graphed as follows:
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2014 2015 2016
Ge nera l Fund Conservation Trust Fund Debt Service Fund Rest ricted Reven ue F und Capital Equipment Fund
Proprietary funds: The Town’s proprietary funds (W ater and Wastewater Funds)provide the same type
of information found in the government-wide financial statements, but in more detail.
The proprietary funds’total cash is available for spending at the Town’s discretion. At the end of 2016 the
Town Board reserved multiple amounts and designated them as committed reserves for emergencies in
both our operations and maintenance and also for capital emergencies. Reserves are recognized in-
house and are outlined earlier in this discussion.
PRELIMINARY DRAFT
B9
Budget Variances in the General Fund: The Town had the following significant budget variances which
are detailed as follows:
Pos. (Ne g.)Account Re ason
Re ve nue s:
661,095$ Sales & use taxes Conservat ive budget ing, increas ed hous ing start s, new 1%
res tricted sales tax.
77,236 Liquor and ot her lic ens e fee Marijuana ex cise and dispens ary fees have inc reas ed.
Ex pe ndi tu re s:
Ge ne ra l Gove rnm ent:
118,306 To wn board comm enhanc .Budget ed ec onom ic devel opment study and proj ec ts not done.
52,729 Ot her purc has ed servic es Purc has ed services were les s than ex pec ted.
Public Works
47,137 Salari es and benefi ts Vacant job pos itions ran longer than ant icipated.
(72,543) Other purc has ed servic es Remaining costs for RA MP projec t not budget ed.
48,586 Propert y management Budgeted more for trail and park maintenanc e than ex pended.
278,486 Capital outlay Expended less for street projec ts than budgeted.
Capital assets: The Town’s government-wide capital assets, net of accumulated depreciation,
decreased due largely to depreciation expense. Additional information as well as a detailed classification
of the Town’s net capital assets can be found in the Notes to the Financial Statements on pages D14 and
D15 of this report.
Long-term debts: As of the end of 2016, the Town had $854,272 in long-term obligations. This includes
obligations for sales and use tax revenue bonds, general obligation bonds capital leases and accrued
com pensated absences. The Town paid off its general obligation bonded debt in 2016, and anticipates
paying off all other 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 $2,176,821 in 2015 to $3,152,780 in
2016. The following chart indicates changes in the taxes collections:
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2014 2015 2016
1% R es trict ed Sa les Tax
Ge nera l Fund Use Tax
Ge nera l Fund Sal es Tax
The Town’s sales and use tax collections increased over the past years. Sales tax receipts increased
19%from 2015 to 2016 and the new 1% restricted sales tax generated $546,685.
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B10
Next year’s budget and rates: The Town’s General Fund balance at the end of the current fiscal year
was $3,433,440. The Town’s 2017 budget anticipates decreasing the General Fund balance by
$661,409. 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.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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Governmental Business-type
Activities Activities Total
Assets:
Cash and investments - Unrestricted 4,105,733 5,501,952 9,607,685
Cash and investments - Restricted 300,000 - 300,000
Cash with County Treasurer 1,326 1,171 2,497
Accounts, taxes, and interest receivables 803,926 398,188 1,202,114
Due from fiduciary fund - 694,116 694,116
Capital assets, net 9,088,092 19,526,887 28,614,979
Total Assets 14,299,077 26,122,314 40,421,391
Liabilities:
Accounts payable 420,553 - 420,553
Due to fiduciary fund 14,484 - 14,484
Other liabilities 152,154 21,725 173,879
Accrued compensated absences 19,540 16,150 35,690
Non-current liabilities due within one year 504,329 - 504,329
Non-current liabilities due longer than one year 314,253 - 314,253
Total Liabilities 1,425,313 37,875 1,463,188
Deferred Inflows of Resources:
Property taxes 209,388 - 209,388
Total Deferred Inflows of Resources 209,388 - 209,388
Net Position:
Net investment in capital assets 8,269,510 19,526,887 27,796,397
Restricted 581,366 701,475 1,282,841
Unrestricted 3,813,500 5,856,077 9,669,577
Total Net Position 12,664,376 26,084,439 38,748,815
Town of Fraser, Colorado
Statement of Net Position
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
C1
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Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Functions/Programs:
Governmental activities:
General government 1,665,945 152,406 99,871 - (1,413,668) - (1,413,668)
Culture and recreation 50,183 - - - (50,183) - (50,183)
Public safety 441,048 - - - (441,048) - (441,048)
Public works 1,388,797 - 46,157 - (1,342,640) - (1,342,640)
Interest 51,415 - - - (51,415) - (51,415)
Total governmental
activities 3,597,388 152,406 146,028 - (3,298,954) - (3,298,954)
Business-type activities:
Water 1,090,771 916,591 5,015 - - (169,165) (169,165)
Wastewater 1,018,600 734,295 51,817 540,000 - 307,512 307,512
Total business-type
activities 2,109,371 1,650,886 56,832 540,000 - 138,347 138,347
Total 5,706,759 1,803,292 202,860 540,000 (3,298,954) 138,347 (3,160,607)
General revenues:
Taxes:
Property tax 201,310 - 201,310
Specific ownership tax 12,285 - 12,285
General sales and use tax 3,152,780 - 3,152,780
Franchise tax 55,575 - 55,575
Other miscellaneous taxes 9,065 - 9,065
Investment earnings 27,902 37,456 65,358
Miscellaneous 147,401 - 147,401
Transfers to (from) 20,000 (20,000) -
Total general revenues and transfers 3,626,318 17,456 3,643,774
Change in Net Position 327,364 155,803 483,167
Net Position - Beginning of Year 12,337,012 25,928,636 38,265,648
Net Position - End of Year 12,664,376 26,084,439 38,748,815
Program Revenues
Net (Expense) Revenue and
Tow n of Fraser, Colorado
Statement of Activities
For the Year Ended December 31, 2016
Changes in Net Position
The accompanying notes are an integral part of these financial statements.
C2
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FUND FINANCIAL STATEMENTS
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Capital Total
Debt Conservation Equipment Restricted Governmental
General Service Trust Replacement Revenue Funds
Assets:
Cash and investments - Unrestricted 3,396,111 183,531 18,572 469,291 38,228 4,105,733
Cash and investments - Restricted - 300,000 - - - 300,000
Cash with County Treasurer 1,326 - - - - 1,326
Receivables 35,013 - - - - 35,013
Due from other governments 452,841 - - 3,581 - 456,422
Property tax receivable 209,388 - - - 103,101 312,489
Total Assets 4,094,679 483,531 18,572 472,872 141,329 5,210,983
Liabilities and Fund Equity:
Liabilities:
Accounts/vouchers payable 350,644 - - - 135,340 485,984
Due to fiduciary fund 14,484 - - - - 14,484
Other liabilities 86,723 - - - - 86,723
Total Liabilities 451,851 - - - 135,340 587,191
Deferred Inflows of Resources:
Property taxes 209,388 - - - - 209,388
Total Deferred Inflow s of Resources 209,388 - - - - 209,388
Fund Balances:
Nonspendable 35,013 - - - - 35,013
Spendable
Restricted 256,805 300,000 18,572 - 5,989 581,366
Committed 1,000,000 183,531 - - - 1,183,531
Assigned 696,444 - - 472,872 - 1,169,316
Unassigned 1,445,178 - - - - 1,445,178
Total Fund Balances 3,433,440 483,531 18,572 472,872 5,989 4,414,404
Total Liabilities, Deferred Inflow s
of Resources and Fund Balances 4,094,679 483,531 18,572 472,872 141,329 5,210,983
Town of Fraser, Colorado
Balance Sheet
Governmental Funds
December 31, 2016
The accompanying notes are an integral part of these financial statements.
C3
PRELIMINARY DRAFT
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Governmental Fund Balance 4,414,404
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.9,088,092
Long-term liabilities are not due and payable in the current period
and, therefore, are not reported in the funds.(838,120)
Net Position of Governmental Activities 12,664,376
Town of Fraser, Colorado
Reconciliation of Governmental Fund Balance to Governmental
Activities Net Position
December 31, 2016
The accompanying notes are an integral part of these financial statements.
C4
PRELIMINARY DRAFT
Capital Total
Debt Conservation Equipment Restricted Governmental
General Service Trust Replacement Revenue Funds
Revenues:
Taxes 2,884,263 68 - - 546,685 3,431,016
Licenses and permits 137,840 - - - - 137,840
Charges for services 14,566 - - - - 14,566
Intergovernmental revenue 124,953 - 6,444 46,157 - 177,554
Investment income 20,080 3,473 93 3,317 939 27,902
Miscellaneous 115,876 - - - - 115,876
Total Revenues 3,297,578 3,541 6,537 49,474 547,624 3,904,754
Expenditures:
General government 1,035,049 - - - 541,635 1,576,684
Public safety 424,580 - - - - 424,580
Public works 836,513 - - - - 836,513
Culture and recreation 11,237 - - - - 11,237
Debt service 38,374 353,499 - 45,418 - 437,291
Capital outlay 157,014 - - 77,027 - 234,041
Total Expenditures 2,502,767 353,499 - 122,445 541,635 3,520,346
Excess (Deficiency) of Revenues
Over Expenditures 794,811 (349,958) 6,537 (72,971) 5,989 384,408
Other Financing Sources (Uses):
Transfers in (out)(367,910) 257,910 - 130,000 - 20,000
Total Other Financing
Sources (Uses)(367,910) 257,910 - 130,000 - 20,000
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures
and Other Financing (Uses)426,901 (92,048) 6,537 57,029 5,989 404,408
Fund Balances - Beginning of Year 3,006,539 575,579 12,035 415,843 - 4,009,996
Fund Balances - End of Year 3,433,440 483,531 18,572 472,872 5,989 4,414,404
Town of Fraser, Colorado
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
C5
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Net Change in Fund Balances of Governmental Funds 404,408
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.(462,757)
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.1,386
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.384,327
Change in Net Position of Governmental Activities 327,364
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, 2016
The accompanying notes are an integral part of these financial statements.
C6
PRELIMINARY DRAFT
Total
Water Wastewater Enterprise
Fund Fund Funds
Assets:
Current assets:
Cash and cash equivalents 1,530,008 3,971,944 5,501,952
Utility receivables 199,849 182,785 382,634
Other receivables - 15,554 15,554
Due (to) from fiduciary fund - 694,116 694,116
Due from other governments 713 458 1,171
Total Current Assets 1,730,570 4,864,857 6,595,427
Non-current assets:
Land 100,000 144,320 244,320
Water rights 19,776 - 19,776
Equipment 353,994 108,789 462,783
Treatment plant and system 14,774,155 14,617,090 29,391,245
Less: Accumulated depreciation (5,123,227) (5,468,010) (10,591,237)
Total Non-Current Assets 10,124,698 9,402,189 19,526,887
Total Assets 11,855,268 14,267,046 26,122,314
Liabilities and Fund Equity:
Liabilities:
Current liabilities:
Deposits payable 15,600 6,125 21,725
Total Current Liabilities 15,600 6,125 21,725
Non-current liabilities:
Accrued compensated absences 5,449 10,701 16,150
Total Liabilities 21,049 16,826 37,875
Net Position:
Net investment in capital assets 10,124,698 9,402,189 19,526,887
Restricted - 701,475 701,475
Unrestricted 1,709,521 4,146,556 5,856,077
Total Net Position 11,834,219 14,250,220 26,084,439
Town of Fraser, Colorado
Statement of Net Position
Enterprise Funds
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
C7
PRELIMINARY DRAFT
Total
Enterprise
Water Wastewater Funds
Operating Revenues:
Charges for services 858,499 734,295 1,592,794
Meter sales 58,092 - 58,092
Miscellaneous revenue 5,015 39 5,054
Total Operating Revenues 921,606 734,334 1,655,940
Operating Expenses:
Personnel 242,901 240,939 483,840
Commodities 281,366 124,990 406,356
Contractual 152,396 179,747 332,143
System development 6,790 - 6,790
Depreciation 407,318 433,887 841,205
Total Operating Expenses 1,090,771 1,018,600 2,109,371
Operating Income (Loss)(169,165) (284,266) (453,431)
Non-Operating Revenues:
Grants - 51,778 51,778
Interest revenue 10,240 27,216 37,456
Net Non-Operating Revenues 10,240 78,994 89,234
Income (Loss) before Contributions and Transfers (158,925) (205,272) (364,197)
Capital contributions - 540,000 540,000
Transfers (out)(10,000) (10,000) (20,000)
Contributions and Transfers (10,000) 530,000 520,000
Change in Net Position (168,925) 324,728 155,803
Net Position - Beginning of Year 12,003,144 13,925,492 25,928,636
Net Position - End of Year 11,834,219 14,250,220 26,084,439
Town of Fraser, Colorado
Statement of Revenues, Expenses and Changes in Net Position
Enterprise Funds
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
C8
PRELIMINARY DRAFT
Total
Enterprise
Water Wastewater Funds
Cash Flows From Operating Activities:
Cash received from customers 906,520 748,799 1,655,319
Other cash received 1,725 29,038 30,763
Cash received (paid) for deposits (5,500) 59,540 54,040
Cash payments for goods and services (440,552) (343,774) (784,326)
Cash payments for salaries and benefits (243,020) (244,282) (487,302)
Net Cash Provided (Used) by Operating Activities 219,173 249,321 468,494
Cash Flows From Non-Capital and Related Financing Activities:
Cash transferred to other funds (10,000) (10,000) (20,000)
Cash received from grants and contributions - 37,609 37,609
Net Cash Provided (Used) by Non-Capital and
Related Financing Activities (10,000) 27,609 17,609
Cash Flows From Capital and Related Financing Activities:
Plant investment fees (paid) received - 540,000 540,000
Cash (paid) for assets (49,000) (83,670) (132,670)
Net Cash Provided (Used) by Capital
and Related Financing Activities (49,000) 456,330 407,330
Cash Flows From Investing Activities:
Interest 10,240 27,216 37,456
Net Cash Provided (Used) by Investing Activities 10,240 27,216 37,456
Net (Decrease) Increase in Cash and Cash Equivalents 170,413 760,476 930,889
Cash and Cash Equivalents - Beginning of Year 1,359,595 3,211,468 4,571,063
Cash and Cash Equivalents - End of Year 1,530,008 3,971,944 5,501,952
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating income (loss)(169,165) (284,266) (453,431)
Adjustments:
Depreciation 407,318 433,887 841,205
(Increase) decrease in accounts receivable (13,360) 37,378 24,018
(Increase) decrease in deposits receivable - 59,540 59,540
Increase (decrease) in accrued compensated absences (120) (3,343) (3,463)
Increase (decrease) in deposits payable (5,500) 6,125 625
Total Adjustments 388,338 533,587 921,925
Net Cash Provided (Used) by Operating Activities 219,173 249,321 468,494
Town of Fraser, Colorado
Statement of Cash Flows
Enterprise Funds
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
C9
PRELIMINARY DRAFT
JFOC
Fund
Assets:
Cash and cash equivalents 2,074,074
Accounts receivable, net:78,795
Total Assets 2,152,869
Liabilities:
Accounts payable 34,104
Deposits 2,118,765
Total Liabilities 2,152,869
Town of Fraser, Colorado
Statement of Fiduciary Assets and Liabilities
December 31, 2016
The accompanying notes are an integral part of these financial statements.
C10
PRELIMINARY DRAFT
JFOC
Fund
Operating Revenues:
Charges for operations and maintenance costs 457,703
Transfer in 164,677
Total Operating Revenues 622,380
Operating Expenses:
Salaries and Wages 179,532
Employee Benefits 58,574
Purchased services 162,482
Supplies 31,938
Utilities 189,854
Total Operating Expenses 622,380
Change in Assets and Liabilties -
Due to Others - Beginning -
Due to Others - Ending -
Town of Fraser, Colorado
Statement of Changes in Fiduciary Assets and Liabilities
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
C11
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NOTES TO THE FINANCIAL STATEMENTS
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
D1
I.Summary of Significant Accounting Policies
The Town of Fraser, Colorado (the "Town") is incorporated under Colorado statutes to provide
public safety, streets and street maintenance, water and wastewater service, recreation including
parks and trails, transportation, special events, planning and zoning, and general administrative
services. The Town is located in Grand County and operates under a Council-Manager form of
government.
An elected Mayor and Town Board are responsible for setting policy, appointing administrative
personnel and adopting an annual budget in accordance with state statutes. The Town’s major
operations include road maintenance, water and wastewater service, public safety and culture
and recreation.
The Town’s financial statements are prepared in accordance with generally accepted accounting
principles (“GAAP”). The Governmental Accounting Standards Board (“GASB”) is responsible for
establishing GAAP for state and local governments through its pronouncements (Statements and
Interpretations). The more significant accounting policies established by GAAP and used by the
Town are discussed below.
A.Reporting Entity
The reporting entity consists of (a) the primary government; i.e., the Town, and (b)
organizations for which the Town is financially accountable. The Town is considered
financially accountable for legally separate organizations if it is able to appoint a voting
majority of an organization's governing body and is either able to impose its will on that
organization or there is a potential for the organization to provide specific financial
benefits, to, or to impose specific financial burdens on, the Town. Consideration is also
given to other organizations that are fiscally dependent; i.e., unable to adopt a budget,
levy taxes, or issue debt without approval by the Town. Organizations for which the
nature and significance of their relationship with the Town are such that exclusion would
cause the reporting entity's financial statements to be misleading or incomplete are also
included in the reporting entity.
Based upon the above criteria, the Town is not financially accountable for any other
organization, nor is the Town a component unit of any other primary governmental entity.
B.Government-wide and Fund Financial Statements
The Town’s basic financial statements include both government-wide (reporting the Town
as a whole) and fund financial statements (reporting the Town’s major funds).
Government-wide financial statements report on information of all of the activities of the
Town. Both the government-wide and fund financial statements categorize primary
activities as either governmental or business-type. The Town’s public safety, public
works, culture and recreation, and administration functions are classified as
governmental activities. The Water Fund and W astewater Fund are classified as
business-type activities.
In the government-wide Statement of Net Position, the governmental activities columns
are reported on a full accrual, economic resource basis, which recognizes all long-term
assets and receivables as well as long-term debt and obligations. The Town’s net
position are reported in three parts –Net investment in capital assets; Restricted net
position; and Unrestricted net position.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D2
I.Summary of Significant Accounting Policies (continued)
B.Government-wide and Fund Financial Statements (continued)
The government-wide Statement of Activities reports both the gross and net cost of each
of the Town’s governmental functions and business-type activities. The governmental
functions are also supported by general government revenues (sales taxes, property and
specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces
gross expenses (including depreciation) by related program revenues, operating and
capital grants. Program revenues must be directly associated with the governmental
function or a business-type activity. Operating grants include operating-specific and
discretionary (either operating or capital) grants while the capital grants column reflects
capital-specific grants.The government-wide focus is on the sustainability of the Town as
an entity and the change in the Town’s net position resulting from the current year’s
activities.
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Measurement focus refers to whether financial statements measure changes in current
resources only (current financial focus) or changes in both current and long-term
resources (long-term economic focus). Basis of accounting refers to the point at which
revenues, expenditures, or expenses are recognized in the accounts and reported in the
financial statements. Financial statement presentation refers to classification of revenues
by source and expenses by function.
1.Long-term Economic Focus and Accrual Basis
Both governmental and business-type activities in the government-wide financial
statements and the proprietary fund financial statements use the long-term
economic focus and are presented on the accrual basis of accounting.
Revenues are recognized when earned and expenses are recognized when
incurred, regardless of the timing of the related cash flows.
2.Current Financial Focus and Modified Accrual Basis
The governmental fund financial statements use the current financial focus and
are presented on the modified accrual basis of accounting. Under the modified
accrual basis of accounting, revenues are recorded when susceptible to accrual;
i.e., both measurable and available. “Available” means collectible within the
current period or soon enough thereafter (60 days) to be used to pay liabilities of
the current period. Expenditures are generally recognized when the related
liability is incurred. The exception to this general rule is that principal and interest
on general long-term debt and compensated absences are recorded only when
payment is due.
Franchise fees, licenses and interest associated with current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenue
of the current fiscal period. Sales and excise taxes collected by vendors at year
end on behalf of the Town are also recognized as revenue if collected within 30
days after year end. Expenditure driven grants are recognized as revenue when
qualified expenditures have been incurred and all other grant requirements have
been met. All other revenue items are considered to be measurable and
available only when cash is received by the Town.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D3
I.Summary of Significant Accounting Policies (continued)
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(continued)
3.Financial Statement Presentation
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are
payments where the amounts are reasonably equivalent to the value of the
interfund services provided and other charges between the functions of the
Town. Elimination of these charges would distort the direct costs and program
revenues reported for the water and wastewater functions.
Amounts reported as program revenues include 1) charges to customers and
applicants for goods, services or privileges provided, 2) operating grants and
contributions, and 3) capital grants and contributions, including special
assessments. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues
of the Town’s enterprise funds are the operation of the water and wastewater
systems within the Town. Operating expenses for the enterprise funds includes
operating expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and
expenses.
D.Fund Financial Statements
The financial transactions of the Town are reported in individual funds in the fund
financial statements. Each fund is accounted for by providing a separate set of self-
balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues
and expenditures/expenses. The fund focus is on current available resources and
budget compliance.
The Town reports the following major governmental funds:
General Fund
The General Fund is the Town’s primary operating fund. It accounts for all
financial resources of the Town, except those required to be accounted for in
another fund.
Special Revenue Funds
Special revenue funds are used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes
other than debt service or capital projects. The term “proceeds of specific revenue
sources” establishes that one or more specific restricted or committed revenues should
be the foundation for a special revenue fund.
The Conservation Trust Fund accounts for lottery proceeds required to be
expended solely on park and recreation improvements.
The Restricted Revenue Fund accounts for a dedicated sales tax to be used for
transportation,trails, and capital project expenditures.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D4
I.Summary of Significant Accounting Policies (continued)
D.Fund Financial Statements (continued)
Capital Projects Funds
Capital projects funds are used to account for and report financial resources that are
restricted, committed, or assigned to expenditure for capital outlays, including the
acquisition or construction of capital facilities and other capital assets. Capital projects
funds exclude those types of capital-related outflows financed by proprietary funds or for
assets that will be held in trust for individuals, private organizations, or other
governments.
The Capital Equipment Replacement Fund accounts for funds set aside for the
purchase and replacement of capital equipment. A significant portion of
revenues consists of highway user tax proceeds.
Debt Service Funds
Debt service funds are used to account for and report financial resources that are
restricted, committed, or assigned to expenditures of principal and interest. Debt service
funds should be used to report resources if legally mandated. Financial resources that
are being accumulated for principal and interest maturing in future years also should be
reported in debt service funds.
The Debt Service Fund accounts for payments made on the Town’s bonded debt
obligations.
The Town reports the following proprietary or business-type funds:
The Water Fund accounts for the purchase and delivery of water to the citizens
of the Town. The Water Fund also maintains the infrastructure needed to
provide water service.
The Wastewater Fund accounts for the treatment of wastewater from the citizens
of the Town. The Wastewater Fund also maintains the infrastructure needed to
provide wastewater service.
The Town reports the following fiduciary fund:
The Joint Facilities Oversight Committee (“JFOC”) Operations Fund accounts for
the operations of the Upper Fraser Valley W astewater Treatment Joint Facilities.
E.Financial Statement Accounts
1.Cash and Cash Equivalents
The Town pools deposits and investments of all funds except JFOC Operations
Fund, which are held in separate accounts. Each fund’s share of the pool is
readily identified by the Town’s internal records. Investments are stated at
market value.
Cash and cash equivalents include demand deposits, certificates of deposit, local
government investment pools (COLOTRUST), and U.S. government-backed
securities.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D5
I.Summary of Significant Accounting Policies (continued)
E.Financial Statement Accounts (continued)
1.Cash and Cash Equivalents (continued)
Certain proceeds of debt issues, as well as certain resources set aside for their
repayment, have been classified as restricted assets on the balance sheet
because their use is limited by the applicable covenants. Restricted assets also
include certain deposits that have been limited as to usage pursuant to escrow
and similar agreements.
The Town’s investment policy permits investments in the following type of
obligations which corresponds with state statutes:
U.S. Treasury Obligations (maximum maturity of 60 months)
Federal Instrumentality Securities (maximum maturity of 60 months)
FDIC-insured Certificates of Deposit (maximum maturity of 18 months)
Corporate Bonds (maximum maturity of 36 months)
Prime Commercial Paper (maximum maturity of 9 months)
Eligible Bankers Acceptances
Repurchase Agreements
General Obligations and Revenue Obligations
Local Government Investment Pools
Money Market Mutual Funds
2.Receivables
Receivables are reported net of an allowance for uncollectible accounts.
3.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.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D6
I.Summary of Significant Accounting Policies (continued)
E.Financial Statement Accounts (continued)
4.Capital Assets
Capital assets, which include land, buildings, equipment, vehicles, and
infrastructure assets (only infrastructure acquired after January 1, 2002), are
reported in the applicable governmental or business-type activity columns in the
government-wide financial statements. The Town defines capital assets as
assets with an initial cost of $5,000 or more and an estimated useful life in
excess of two years. Such assets are recorded at historical cost. Donated
capital assets are recorded at estimated fair value at the date of donation.
Capital outlay for projects is capitalized as projects are constructed. Interest
incurred during the construction phase is capitalized as part of the value of the
assets constructed in the business-type activities.
Infrastructure, buildings, and equipment are depreciated using the straight line
method over the following estimated useful lives:
Asse ts Ye ars
Infrastructure 15 - 30
Buildings and improvem ent s 15 - 40
Di stribution systems 40
Equi pment and ve hicles 7
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 balance sheet because their use is limited by applicable
bond covenants.
Fees collected in lieu of park and open space and affordable housing impact fees
are restricted as to their use by Town ordinances. Debt service property tax
collected in excess of the debt service of the general obligation series 1998
bonds is reserved for em ergency and catastrophic road failure, future debt
service or early redemption of the bond.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D7
I.Summary of Significant Accounting Policies (continued)
E.Financial Statement Accounts (continued)
7.Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of
net position that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/ expenditure) until then. The government doesn’t
have any deferred outflows of resources at December 31, 2016.
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 deferred
inflow, property taxes,is deferred and recognized as an inflow of resources in the
period that the amounts become available.
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 fund balance amounts that are constrained for specific
purposes which are externally imposed by providers, such as creditors or
amounts constrained due to constitutional provisions or enabling legislation.
Committed –includes fund balance amounts that are constrained for
specific purposes that are internally imposed by the government through
formal action of the highest level of decision making authority which is the
Town Board.
Assigned –includes spendable fund balance amounts that are intended to
be used for specific purposes that are neither considered restricted or
committed. Fund Balance may be assigned by the Town or its management
designee.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D8
I.Summary of Significant Accounting Policies (continued)
E.Financial Statement Accounts (continued)
8.Categories and Classification of Fund Balance (continued)
Unassigned -includes residual positive fund balance within the General
Fund which has not been classified within the other above mentioned
categories. Unassigned fund balance may also include negative balances
for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those specific purposes.
The Town may use restricted amounts to be spent first when both restricted and
unrestricted fund balance is available unless there are legal documents/contracts
that prohibit doing this, such as in grant agreements requiring dollar for dollar
spending. Additionally, the Town might first use committed, then assigned, and
lastly unassigned amounts of unrestricted fund balance when expenditures are
made.
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
(“W inter Park Ranch”) and Grand County Water and Sanitation District #1
(“Grand County #1”) and the Town (previously the Fraser Sanitation District)for
operating and replacement costs relating to the combined wastewater treatment
plant. These deposits are held for working capital and replacement costs during
the time all members remain joint operators of the plant.
F.Significant Accounting Policies
1.Use of Estimates
The preparation of financial statements in conformity with GAAP requires the
Town’s management to make estimates and assumptions that affect the reported
amount of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amount of revenues and
expenditures or expenses during the reporting period. Actual results could differ
from those estimates.
2.Proprietary Funds
As required by GASB Statement No. 62, the Town has elected to follow all GASB
pronouncements for its proprietary funds.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D9
I.Summary of Significant Accounting Policies (continued)
F.Significant Accounting Policies (continued)
3.Credit Risk
Receivables in the Town’s funds are primarily due from other governments.
Management believes that the credit risk related to these receivables is minimal.
4.Restricted and Unrestricted Resources
When both restricted and unrestricted resources are available for use, it is the
government’s policy to use restricted resources first, then unrestricted resources
as they are needed.
II.Reconciliation of Government-wide and Fund Financial Statements
A.Explanation of certain differences between the governmental fund Balance Sheet
and the government-wide Statement of Net Position
The governmental fund Balance Sheet includes reconciliation between fund balance -
total governmental funds and net position of governmental activities as reported in the
government-wide Statement of Net Position. One element of that reconciliation explains
that “Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.” The $9,088,092 represents the book value of
assets at December 31, 2016.
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 $838,122 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, but in the Statement of
Activities, the costs of those assets are allocated over their estimated useful lives as
depreciation expense. The details of this reconciling amount are capital outlay of
$132,771,less depreciation expense of $595,528 during 2016. Also, repayment of long-
term obligations of $384,327 is shown as an expenditure in the governmental fund, but is
not reflected in the Statement of Activities.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D10
III.Stewardship, Compliance, and Accountability
A.Budgetary Information
1.Budgetary Basis of Accounting
The preparation Budgets are adopted on a basis consistent with generally
accepted accounting principles, except for the proprietary funds. Annual
appropriations are adopted for all funds. Expenditures may not legally exceed
appropriations at the fund level. All appropriations lapse at year end.
As required by Colorado Statutes, the Town followed the required timetable
noted below in preparing, approving, and enacting its budget for 2016.
(1)For the 2016 budget year, prior to August 25, 2015, 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, 2015, a recommended
budget which detailed the necessary property taxes needed along with
other available revenues to meet the Town’s operating requirements.
(3)Prior to December 15, 2015, 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 2015 were collected in 2016 and taxes certified in 2016 will be
collected in 2017. 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.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D11
III.Stewardship, Compliance, and Accountability (continued)
A.Budgetary Information (continued)
2.Excess of Expenditures over Appropriations
For the year ended December 31, 2016, expenditures exceeded appropriations
in the following funds.
Ex penditure s
in excess of
Fund budget
Res tricted Revenue 91,635$
This may be a violation of Colorado budget law.
B.TABOR Amendment
In November 1992, Colorado voters amended Article X of the Colorado Constitution by
adding Section 20, commonly known as the Taxpayer's Bill of Rights (“TABOR). TABOR
contains revenue, spending, tax and debt limitations that apply to the State of Colorado
and local governments. TABOR requires, with certain exceptions, advance voter
approval for any new tax, tax rate increase, mill levy above that for the prior year,
extension of any expiring tax, or tax policy change directly causing a net tax revenue gain
to any local government.
Except for refinancing bonded debt at a lower interest rate or adding new employees to
existing pension plans, TABOR requires advance voter approval for the creation of any
multiple-fiscal year debt or other financial obligation unless adequate present cash
reserves are pledged irrevocably and held for payments in all future fiscal years.
TABOR also requires local governments to establish an emergency reserve to be used
for declared emergencies only. The reserve is calculated at 3% of fiscal year spending.
Fiscal year spending excludes bonded debt service and enterprise spending. The Town
has reserved $115,000.
On April 4, 2000, the Town’s electorate approved the following: Without any increase in
the property tax mill levy or the 4% sales and use tax rate, shall the Town of Fraser,
Colorado, be authorized, in the year 2000 and each subsequent year thereafter, to
collect, retain, and expend the full proceeds of the Town’s fees, taxes, non-federal grants
and other revenues and to spend such revenues for debt service, municipal operations,
capital projects, and any other lawful municipal purpose, notwithstanding any state of
Colorado restrictions on revenues or spending, including the restrictions of Article X,
Section 20 of the Colorado Constitution, the revenue limit in Section 29-1-301 of the
Colorado Revised Statutes, or any other law.
The Town's management believes it is in compliance with the financial provisions of
TABOR. However, TABOR is complex and subject to interpretation. Many of its
provisions, including the interpretation of how to calculate fiscal year spending limits,
could require judicial interpretation.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D12
IV.Detailed Notes on All Funds
A.Deposits and Investments
The Town’s checking accounts are entirely covered by federal depository insurance
(“FDIC”) or by collateral held under Colorado’s Public Deposit Protection Act (“PDPA”).
The FDIC insures the first $250,000 of the Town’s deposits at each financial institution.
Deposit balances over $250,000 are collateralized as required by PDPA. The carrying
amount of the Town’s demand deposits was $1,379,097 at year end.
Fair Value of Investments
The Town measures and records its investments using fair value measurement
guidelines established by generally accepted accounting principles. These guidelines
recognize a three-tiered fair value hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets;
Level 2: Observable inputs other than quoted market prices; and,
Level 3: Unobservable inputs.
At December 31, 2016, the Town had the following recurring fair value measurements:
Inve st ments at Fair Value Total Le ve l 1 Le ve l 2 Le ve l 3
Cas h with fiscal agent 2,497$ 2,497 - -
Colotrus t 10,602,662 - 10,602,662 -
10,605,159$ 2,497 10,602,662 -
Fa ir Value Measure ment
The Town had the following deposits and investments for all funds Fund, with the
following maturities December 31, 2016:
Ma turi ti es
Type:Ra ti ng
Ca rrying
Am ount
Le ss Tha n
One Year
Le ss Tha n
Five Ye ars
Depos its:
Cert ificat es of Depos it Not Rat ed 1,079,684 1,079,684 -
Checking Account s Not Rat ed 264,829$ 264,829 -
Savi ngs Accounts Not Rat ed 34,584$ 34,584 -
Investments:
Cas h with fiscal agent 2,497 2,497
Inve stment Pools AAAm 10,602,662 10,602,662 -
11,984,256$
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.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D13
IV.Detailed Notes on All Funds (continued)
A.Deposits and Investments (continued)
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.
At December 31, 2016, cash has been restricted for the following purposes:
1998 Sales Tax Revenue Bond Res erves 155,000$
2002 Sales Tax Revenue Bond Res erves 20,000
1998 General Obligation Bond Res erves 40,000
Additional debt service res erve 85,000
Tota l Restri cte d Ca sh 300,000$
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D14
IV.Detailed Notes on All Funds (continued)
B.Receivables
Receivables as of year-end for the Town’s funds, including applicable allowances for
uncollectible accounts, are as follows:
Ca pita l Re st ricte d
Ge nera l Eq uipment Re ve nue Total
Re ce ivable s:
Property Tax es 209,388$ - 103,102 312,490
Accounts 31,216 - - 31,216
Other 3,798 - - 3,798
Intergovernmental 452,841 3,581 - 456,422
Gros s rec eiva bles 697,243 3,581 103,102 803,926
Les s: allowance for
unc ollectible - - - -
Net Receiva bles 697,243$ 3,581 103,102 803,926
Gove rnm enta l Funds
Water Waste water
Ope ra ti ons Ope ra ti ons Total
Re ce ivables:
Account s 199,849$ 182,785$ 382,634$
Ot her - 15,554 15,554$
Gros s receiva bles 199,849 198,339 398,188
Les s: allowanc e for
uncollec tible - - -
Net Receiva bles 199,849$ 198,339$ 398,188$
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 $209,388 of property taxes levied in 2016 but not
available until 2017.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D15
IV.Detailed Notes on All Funds (continued)
C.Capital Assets
Capital asset activity for the year ended December 31, 2016 was as follows:
Be ginning En ding
Ba lance Incre ases De cre ases Ba lance
Gove rnmenta l acti vi ti es:
Capit al assets, not being deprec iated:
Land and improvem ent s 1,237,355$ - - 1,237,355
Cons truc tion in progres s 360,255 9,634 (190,439) 179,450
To tal capit al assets,
not being deprec iated 1,597,610 9,634 (190,439) 1,416,805
Capit al assets, being deprec iated:
Infras truc ture 14,392,044 289,902 - 14,681,946
Buildings 1,183,052 - - 1,183,052
Furniture and equipment 1,542,317 23,674 - 1,565,991
To tal capit al assets,
being deprec iated 17,117,413 313,576 - 17,430,989
Les s accumulated deprec iation for:
Infras truc ture (6,975,503) (519,279) - (7,494,782)
Buildings (887,582) (41,249) - (928,831)
Furniture and equipment (1,301,089) (35,000) - (1,336,089)
To tal accumulated deprec iation (9,164,174) (595,528) - (9,759,702)
To tal capit al assets,
being deprec iated, net 7,953,239 (281,952) - 7,671,287
Gove rnm enta l acti vi ti es
ca pi ta l asse ts, net 9,550,849$ (272,318) (190,439) 9,088,092
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D16
IV.Detailed Notes on All Funds (continued)
C.Capital Assets (continued)
Be ginning En ding
Ba lance Incre ases De cre ases Ba lance
Busi ne ss-type acti vi ti es:
Capit al assets, not being depreciated:
Land 244,320$ - - 244,320
Water rights 19,776 - - 19,776
To tal capital assets,
not being deprec iated 264,096 - - 264,096
Capit al assets, being depreciated:
System and improvement s 22,901,791 95,576 - 22,997,367
Buildings and improvements 6,367,469 26,411 - 6,393,880
Equipment 452,100 10,683 - 462,783
To tal capital assets,
being deprec iated 29,721,360 132,670 - 29,854,030
Les s accumulated deprec iation for:
System and improvement s (7,558,602) (685,927) - (8,244,529)
Buildings and improvements (1,980,773) (122,273) - (2,103,046)
Equipment (210,657) (33,007) - (243,664)
To tal accumulated deprec iation (9,750,032) (841,207) - (10,591,239)
To tal capital assets,
being deprec iated, net 19,971,328 (708,537) - 19,262,791
Bu si ne ss-type acti vi ti es
ca pita l asse ts, net 20,235,424$ (708,537) - 19,526,887
In accordance with generally accepted accounting principles, the Town has elected to
report general government infrastructure assets prospectively. Therefore, only general
government infrastructure assets acquired since January 1, 2002 are included in the
Town’s financial statements.
The Town had the following capital outlay and depreciation expense for the following
functions:
De pre ci ation Ca pita l
Ex pense Outlay
Governm ental ac tivities:
General government 36,815$ -
Public work s, including infras truc ture 520,203 123,138
Culture and rec reat ion 38,510 200,072
Total gove rnmenta l acti vi ti es 595,528$ 323,210
Busines s-type activi ties:
Water 407,319$ 49,000
Was tewat er 433,888 83,670
Total business-type a cti vi ti es 841,207$ 132,670
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D17
IV.Detailed Notes on All Funds (continued)
D.Interfund Receivables, Payables, and Transfers
Transfers were as follows:
In Out
General -$ (367,910)
Debt Service 257,910 -
Capi tal Equipment 130,000 -
Wastewat er - (10,000)
Water - (10,000)
387,910$ (387,910)
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
$45,418 through 2017.
Future minimum lease payments for both leases are as follows:
Ye ar Princi pa l Inte re st Total
2017 66,515 17,277 83,792
2018 23,365 15,008 38,373
2019 24,524 13,850 38,374
2020 25,741 12,633 38,374
2021 27,017 11,356 38,373
2022 - 2026 156,568 35,301 191,869
2027 - 2028 54,852 2,709 57,561
To tal 378,582$ 108,134 486,716
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D18
IV.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 $600,000 in Series 1998 General Obligation Bonds.
The bonds are secured by the full faith and credit of the Town and pay interest at
4.25% to 5.1%. The bonds were issued to finance improvements to the Town’s
streets, roads, sidewalks and other infrastructure. These bonds were paid off
during 2016.
4.Advance Refunding
The Town has advance refunded the 1992 Sales Tax Revenue Bonds. Sufficient
U.S. government, state and local government securities were placed in an
irrevocable trust for the purpose of generating resources for all future debt
service payments of the refunded debt. As a result, the refunded bonds are
considered to be defeased and the liability has been removed from the General
Long-Term Debt Account Group. The amount of defeased bonds outstanding at
year end is not readily determinable.
5.Bonded Debt
The Town's annual bonded debt service is as follows:
Ye ar Principa l Inte re st Total
2017 440,000 11,910 451,910
To tal 440,000$ 11,910 451,910
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D19
IV.Detailed Notes on All Funds (continued)
E.Other Liabilities (continued)
6.Long-term Debt
The Town's annual total debt service requirements are as follows:
Ye ar Princi pa l Inte re st Total
2017 506,515 29,187 535,702
2018 23,365 15,008 38,373
2019 24,524 13,850 38,374
2020 25,741 12,633 38,374
2021 27,017 11,356 38,373
2022 - 2026 156,568 35,301 191,869
2027 - 2028 54,852 2,709 57,561
To tal 818,582$ 120,044 938,626
7.Accrued Compensated Absences
Earned but unused vacation benefits amounted to $19,540 at December 31,
2016. All unused vacation benefits are recorded on the government-wide
financial statements.
8.Schedule of Changes in Long-term Debt
Ba lance Ba la nce Due Within
1/1/16 Ad diti ons Re ducti ons 12/31/16 One Year
Capi tal leases 442,908$ - (64,326) 378,582 64,329
Sales and us e tax bonds 665,000 - (225,000) 440,000 440,000
General obligat ion bonds 95,000 - (95,000) - -
Accrued compens at ed
abs ences 20,926 - (1,386) 19,540 -
Tota l 1,223,834$ - (385,712) 838,122 504,329
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D20
IV.Detailed Notes on All Funds (continued)
F.Restricted Fund Balance
The Town had the following restrictions on the fund balances at December 31, 2016:
Ba la nce Ba lance
1/1/16 Additi ons De le ti ons 12/31/16
General Fund:
Fees in lieu of Park 6,379$ - - 6,379
Affordable hous ing impac t fee 135,426 - - 135,426
Emergenc y res erves 122,000 - (7,000) 115,000
Debt Service Fund reserves :
Nex t year's pay ment s 300,000 - - 300,000
Cons ervat ion Tr us t Fund 12,035 - 6,537 18,572
Res tric ted Revenue Fund - 547,624 (541,635) 5,989
Wastewater Fund
Operat ing reserve 47,373 572 - 47,945
Capi tal replacem ent res erve 713,853 3,807 (64,130) 653,530
1,337,066$ 552,003 (606,228) 1,282,841
The Town had $701,475 restricted in the Wastewater Fund for Upper Fraser Valley
Wastewater Treatment Joint Facilities operating and capital replacement expenses.
G.Committed Fund Balance
The Town has the following commitments of the governmental fund balances at
December 31, 2016:
Ba la nce Ba lance
1/1/16 Additi ons De leti ons 12/31/16
General Fund:
Res erve savi ngs 1,000,000$ - - 1,000,000
Debt Service Fund:
Capi tal projec ts 275,579 - (92,048) 183,531
1,275,579$ - (92,048) 1,183,531
H.Assigned Fund Balance
The Town had the following assignments of the governmental fund balances at
December 31, 2016:
Ba lance Ba lance
1/1/16 Additi ons De le ti ons 12/31/16
General Fund:
Capital projec ts 113,999 - (78,964) 35,035
Fut ure budget deficit 871,910 - (210,501) 661,409
Capital Equipment Replac ement :
Capital projec ts 415,843 57,029 - 472,872
1,401,752$ 57,029 (289,465) 1,169,316
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D21
V.Other Information
A.Joint Facilities Oversight Committee (“JFOC”) Operations Fund
In 2002, the Fraser Sanitation District (the “District”), Winter Park Ranch, and Grand
County #1 entered into an agreement to participate in the joint construction,
maintenance, and operation of joint interceptor sewer lines and joint sewage treatment
facilities. This new wastewater treatment plant has been constructed on the existing plant
site of the District/Winter Park Ranch treatment facility and a new and/or expanded sewer
trunk line from Grand County #1 will connect with the existing District/W inter Park Ranch
interceptor line. Title of the new joint facilities will be allocated among these three
members based on each member’s proportionate share of equivalent residential units to
be serviced by the new plant. The District was dissolved into the Town effective
December 31, 2009.
Construction costs of these new facilities, excluding expenses relating to segment B of
the joint trunk lines (“B-Line”) described below, are based on each member’s future share
of equivalent residential units to be serviced by the new plant and are allocated as
follows:
Town –34.07%
Winter Park Ranch –28.89%
Grand County #1 –37.04%
Under the Upper Fraser Valley W astewater Agreement, a Joint Facilities Oversight
Committee (“JFOC”) was established to represent the three members regarding the
construction, expansion, operations, management, and maintenance of the new joint
facilities. The JFOC is comprised of a total of nine members, with each member having
three members. The Town was appointed as the manager of the joint facilities for 2016.
The JFOC may designate a new manager on an annual basis. In 2016, as approved by
the JFOC, the Town earned $29,000 in management fees.
Operations and maintenance costs will be allocated among the three members based on
each member’s proportionate share of equivalent residential units currently serviced by
the new plant. In addition, upon certification of the new joint facilities, this agreement
requires the establishment of an operations and maintenance reserve fund equal to three
months operations and maintenance costs and a capital replacement reserve fund, the
amount which is determined by the JFOC.
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, 2016,Maryvale development sewer mains and infrastructure
had been conveyed to the District, and is presented as an asset on the Town’s
financial statements.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D22
V.Other Information (continued)
A.Joint Facilities Oversight Committee (“JFOC”) Operations Fund (continued)
1.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 CW RPDA
loan payments by pre-purchasing tap fees. In addition, this agreement requires
the Developer and Maryvale Districts to establish an escrow account in the
amount of $160,000 to guarantee their compliance in the event of a default
regarding their pre-purchase obligations. As of December 31, 2016, no prepaid
tap fees have been required or made by the Developer and the Maryvale
Districts. This guarantee was released in 2009.
2.Pre-Inclusion Agreement -Cornerstone
The District entered an agreement on April 5, 2005, with Cornerstone W inter
Park Holdings, L.L.C. (“Cornerstone”) that permits the inclusion of a portion of
Cornerstone’s development within the District’s boundaries in order to receive
sanitation services for inclusion fees.
Cornerstone shall be responsible for constructing, 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 –Defined Contribution Pension Plan –Section 401(a)
The Town is a member of Colorado County Officials & Employees Retirement
Association (“CCOERA”). COERA was established to provide retirement benefits to
employees of Colorado local governments. As a member, the Town participates in the
CCOERA retirement plan created in accordance with Internal Revenue Code Section
401(a) (the “401(a) Plan”), which is a defined contribution pension plan. Employees of
the Town are required to participate in the 401(a) Plan after one full year of service.
Each eligible employee is required to contribute 4% of gross wages to the 401(a) Plan.
The Town matches employee contributions at the same rate and these matched dollars
have a vesting period of 5 years. The Town is neither the trustee nor the administrator
for the 401(a) Plan. The seven-member governing board of CCOERA makes all
necessary rules and is responsible for administration of the funds in the 401(a) Plan.
Benefits payable at retirement, death, termination, or other unforeseen circumstance are
based on the accumulated account balance of each employee. Upon termination of
service with the Town, any unvested amounts will be forfeited and may be used to pay
plan expenses or Employer’s contributions to the 401(a) Plan.
During 2016, the Town recognized $36,612 of expense under this plan. The Town has
$2,913 of forfeitures included in the 2016 401(a) Plan expense. The Town had a liability
of $2,562 due to the 401(a) Plan at December 31, 2016.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D23
V.Other Information (continued)
C.Retirement Plans –Defined Contribution Pension Plan –Section 457
The Town also participates in the CCOERA retirement plan created in accordance with
Internal Revenue Code Section 457 (the “457 Plan”), which is a defined contribution plan.
The plan permits employees to defer a portion of their salary until future years. All
contributions to the 457 Plan and all income attributable to those amounts, property are
to be held in trust for the exclusive benefit of the plan participants and their beneficiaries.
Plan investment purchases are determined by the plan participant and therefore, the
plan’s investment concentration varies between participants. The Town has no liability
for losses under the plan but does have the duty of due care that would be required of an
ordinary prudent investor. The Town is neither the trustee nor the administrator for the
plan. The seven-member governing board of CCOERA makes all necessary rules and is
responsible for administration of the funds in the 401(a) Plan. Benefits payable at
retirement, death, termination, or other unforeseen circumstance are based on the
accumulated account balance of each employee.
The Town did not recognize any pension expense related to this 457 Plan during 2016
and had no liability to the 457 Plan at December 31, 2016.
D.Other Employee Benefits -Post Employment Health Care Benefits
All Town employees covered by State continuation insurance may continue their health
insurance due to a reduction in work hours or termination of employment (for reasons
other than "gross misconduct") for up to 18 months after the occurrence of one of these
events. Eligible dependents may continue coverage for up to 36 months. Employees
who elect continued coverage must pay the Town for premiums from the termination date
of coverage and monthly thereafter. No cost to the Town is recognized as employees
reimburse 100% of their premium cost.
E.Intergovernmental Agreements
i.Public Safety Services
In lieu of directly providing public safety services, the Town has entered into an
agreement with the Town of Winter Park, Colorado to form a joint public safety force
effective May 1, 2005 and amended March 21, 2012. The agreement requires costs
to be split 65% to W inter Park and 35% to Fraser, based upon average call volume,
but reevaluated annually and may be amended as agreed upon by both parties.
ii.Building Department
The Town has entered into an agreement January 20, 2010 to form a joint building
services department with the Town of Winter Park, Colorado and the Town of
Granby, Colorado.According to the agreement, quarterly expenses are to be split
based upon the portion of revenue collected for each Town, but may be adjusted
annually by mutual agreement based on permits issued, inspections performed, time
expended by personnel, vehicle depreciation and mileage and other measures.
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D24
V.Other Information (continued)
F.Commitments and Contingencies
i.Construction Commitments
The Town entered into an agreement with Conroy Excavating, Inc. to perform work
on the north sewer system sanitary sewer for a total estimated project cost of
$176,060. At December 31, 2015, the Town had expended $110,506 for this project,
leaving $65,554 to be expended in future years.
G.Risk Management
The Town is exposed to various risks of loss related to workers’ compensation, general
liability, and worker unemployment. The Town has acquired commercial coverage for
these risks. Any settled claims are not expected to exceed the commercial insurance
coverage. The Town is also exposed to the risks of loss related to torts; theft of, damage
to, and destruction of assets; and errors and omissions. The Town is a member of the
insurance pool described below to cover these risks.
Pursuant to an inter-local agreement authorized by state statute, the Town joined the
Colorado Intergovernmental Risk Sharing Agency (“CIRSA”) to provide insurance
coverage. Members of the board of directors are nominated and elected by members to
two-year, staggered terms and meet at least monthly to direct operations. CIRSA
budgets are funded by contributions from member governments.
The Town's share of assets, liabilities and fund equity as of December 31, 2016, the
latest date for which information is available, is as follows:
Insu ra nce Pools:Fra se r Sha re
Propert y and Cas ualty Pool:
Loss fund 26,704$
Operat ing 11,697
Pooled ex cess fund 5,691
Res erve fund 19,797
Work ers ' Compensation Pool:
Los s fund 23,421
Operat ing 2,106
Pooled ex cess fund 14,433
Res erve fund 15,248
PRELIMINARY DRAFT
Town of Fraser
Notes to the Financial Statements
December 31, 2016
(Continued)
D25
V.Other Information (continued)
G.Risk Management (continued)
The December 31, 2016 combined financial information is as follows:
Cas h and inves tment s 16,478,953$
Ot her as sets 70,775,712
Total 87,254,665
Liabilit ies 36,055,129
Net assets 51,199,536
Total 87,254,665
To tal revenue 26,382,872
To tal ex pens e (21,927,693)
(De fi ci ency) of Re ve nue
Ove r Ex pe nse 4,455,179
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, 2016,
the Town does not expect to incur losses in excess of the above coverage.
Surpluses or deficits for any year are subject to change for reasons which include:
interest earnings on invested amounts for those years and funds, re-estimation of losses
for those years and funds, and credits or distributions from surplus for those years and
funds.
H. 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 $3,242,993
of Plant Investment Fees have been rebated to the developers.
PRELIMINARY DRAFT
REQUIRED SUPPLEMENTARY INFORMATION
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Taxes 2,216,482 2,884,263 667,781 2,449,163
Licenses and fees 63,000 137,840 74,840 116,478
Charges for services 5,000 14,566 9,566 41,050
Intergovernmental 97,000 124,953 27,953 1,477,305
Interest 3,500 20,080 16,580 6,450
Other revenue 92,500 115,876 23,376 148,346
Total Revenues 2,477,482 3,297,578 820,096 4,238,792
Expenditures:
General government 1,254,416 1,035,049 219,367 1,016,942
Public safety 450,000 424,580 25,420 406,020
Public works 1,300,140 993,527 306,613 3,331,099
Culture and recreation 13,550 11,237 2,313 7,566
Debt service 38,375 38,374 1 38,374
Total Expenditures 3,056,481 2,502,767 553,714 4,800,001
Excess (Deficiency) of Revenues
Over Expenditures (578,999) 794,811 1,373,810 (561,209)
Other Financing Sources (Uses):
Transfer in - - - 10,000
Transfer (out)(367,910) (367,910) - (246,550)
Total Other Financing (Uses)(367,910) (367,910) - (236,550)
Excess (Deficiency) of Revenues
Over Expenditures and Other
Financing Sources (Uses)(946,909) 426,901 1,373,810 (797,759)
Fund Balances - Beginning of Year 1,765,979 3,006,539 1,240,560 3,804,298
Fund Balances - End of Year 819,070 3,433,440 2,614,370 3,006,539
2016
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, 2016
(With Comparative Actual Amounts for 2015)
The accompanying notes are an integral part of these financial statements.
E1
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Taxes:
Property 201,082 201,242 160 197,417
Specific ownership 10,200 12,285 2,085 11,677
Sales & use 1,945,000 2,606,095 661,095 2,176,821
Franchise 52,000 55,575 3,575 54,795
Motor vehicle 4,200 4,770 570 4,661
Cigarette 4,000 4,296 296 3,792
Total 2,216,482 2,884,263 667,781 2,449,163
Licenses and Fees:
Business license fees 13,000 10,604 (2,396) 13,100
Regulated Industry fees 50,000 127,236 77,236 103,378
Total 63,000 137,840 74,840 116,478
Charges for services:
Planning and building fees 5,000 14,566 9,566 41,050
Total 5,000 14,566 9,566 41,050
Intergovernmental:
Grant revenue 97,000 124,953 27,953 1,477,305
Total 97,000 124,953 27,953 1,477,305
Interest:
Earnings on deposits 3,500 20,080 16,580 6,450
Total 3,500 20,080 16,580 6,450
Other:
Other income 80,000 99,871 19,871 132,731
Rents 12,500 16,005 3,505 15,615
Total 92,500 115,876 23,376 148,346
Other Financing Sources:
Transfer in - - - 10,000
Total - - - 10,000
Total Revenues 2,477,482 3,297,578 820,096 4,248,792
2016
Town of Fraser, Colorado
General Fund
Schedule of Revenues
Budget (GAAP Basis) and Actual
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
The accompanying notes are an integral part of these financial statements.
E2
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
General Government:
Town board salaries 51,295 44,388 6,907 34,901
Town board community enhancement 306,640 188,334 118,306 231,436
Miscellaneous 3,000 12,917 (9,917) 1,098
Administrative salaries 341,527 321,515 20,012 323,037
Other purchased services 467,954 415,225 52,729 387,134
Utilities 22,500 16,074 6,426 16,384
Property management 61,500 25,226 36,274 22,952
Fiscal agent salaries - 11,370 (11,370) -
Total General Government 1,254,416 1,035,049 219,367 1,016,942
Public Safety 450,000 424,580 25,420 406,020
Total Public Safety 450,000 424,580 25,420 406,020
Public Works
Salaries and benefits 560,190 513,053 47,137 501,685
Other purchased services 171,250 243,793 (72,543) 2,390,267
Utilities 15,700 10,753 4,947 12,385
Property management 117,500 68,914 48,586 137,592
Capital outlay 435,500 157,014 278,486 289,170
Total Public Works 1,300,140 993,527 306,613 3,331,099
Culture and Recreation
Other purchased services 6,000 5,100 900 5,250
Utilities 2,550 1,759 791 1,899
Property management 5,000 4,378 622 417
Total Culture and Recreation 13,550 11,237 2,313 7,566
Debt Services
Interest 17,165 17,165 - 18,167
Principal 21,210 21,209 1 20,207
Total Debt Services 38,375 38,374 1 38,374
Other Financing Uses
Transfer out 367,910 367,910 - 246,550
Total Financing Sources 367,910 367,910 - 246,550
Total Expenditures 3,424,391 2,870,677 553,714 5,046,551
2016
Town of Fraser, Colorado
General Fund
Schedule of Expenditures and Transfers
Budget (GAAP Basis) and Actual
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
The accompanying notes are an integral part of these financial statements.
E3
PRELIMINARY DRAFT
Conservation Trust Fund
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Lottery proceeds 6,500 6,444 (56) 5,523
Interest 15 93 78 17
Total Revenues 6,515 6,537 22 5,540
Other Financing Uses
Transfer (Out)- - - (10,000)
Total Financing Sources - - - (10,000)
Excess (Deficiency) of Revenues
Over Expenditures 6,515 6,537 22 (4,460)
Fund Balances - Beginning of Year 13,010 12,035 (975) 16,495
Fund Balances - End of Year 19,525 18,572 (953) 12,035
Schedule of Revenues, Expenditures and Changes in Fund Balances
Special Revenue Fund
Town of Fraser, Colorado
2016
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
E4
PRELIMINARY DRAFT
Restricted Revenue Fund
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Taxes 450,000 546,685 96,685 -
Interest 150 939 789 -
Total Revenues 450,150 547,624 97,474 -
Expenditures:
General government
Transportation 400,000 536,747 (136,747) -
Trails 50,000 4,887 45,113 -
Total Expenditures 450,000 541,634 (91,634) -
Excess (Deficiency) of Revenues
Over Expenditures 150 5,990 5,840 -
Fund Balances - Beginning of Year - - - -
Fund Balances - End of Year 150 5,990 5,840 -
2016
Town of Fraser, Colorado
Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget (GAAP Basis) and Actual
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
The accompanying notes are an integral part of these financial statements.
E5
PRELIMINARY DRAFT
SUPPLEMENTARY INFORMATION
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Property taxes - 68 68 79,993
Specific ownership tax - - - 5,138
Interest 100 3,473 3,373 970
Total Revenues 100 3,541 3,441 86,101
Expenditures:
Principal 320,000 320,000 - 250,000
Interest 37,704 31,953 5,751 49,074
Other 3,000 1,546 1,454 3,938
Total Expenditures 360,704 353,499 7,205 303,012
Excess (Deficiency) of Revenues
Over Expenditures (360,604) (349,958) 10,646 (216,911)
Other Financing Sources:
Transfer in 257,910 257,910 - 246,550
Total Other Financing Sources 257,910 257,910 - 246,550
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures (102,694) (92,048) 10,646 29,639
Fund Balances - Beginning of Year (100) 575,579 575,679 545,940
Fund Balances - End of Year (102,794) 483,531 586,325 575,579
Schedule of Revenues, Expenditures and Changes in Fund Balances
Debt Service Fund
Town of Fraser, Colorado
2016
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
F1
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Highway users revenue 45,039 46,157 1,118 45,940
Earnings on investments 350 3,317 2,967 828
Total Revenues 45,389 49,474 4,085 46,768
Expenditures:
Capital lease 45,418 45,418 - 45,418
Equipment 175,000 77,027 97,973 71,085
Total Expenditures 220,418 122,445 97,973 116,503
Excess (Deficiency) of Revenues
Over Expenditures (175,029) (72,971) 102,058 (69,735)
Other Financing Sources:
Transfer In 130,000 130,000 - 20,000
Total Other Financing Sources 130,000 130,000 - 20,000
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures (45,029) 57,029 102,058 (49,735)
Fund Balances - Beginning of Year 410,774 415,843 5,069 465,578
Fund Balances - End of Year 365,745 472,872 107,127 415,843
Capital Equipment Replacement Fund
Town of Fraser, Colorado
(With Comparative Actual Amounts for 2015)
2016
For the Year Ended December 31, 2016
Budget (GAAP Basis) and Actual
Schedule of Revenues, Expenditures and Changes in Fund Balances
The accompanying notes are an integral part of these financial statements.
F2
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Tap fees 7,700 - (7,700) 15,400
User fees 832,120 858,499 26,379 786,229
Water meter fees 5,000 58,092 53,092 38,419
Interest income 800 10,240 9,440 2,079
Excavation permits 275 825 550 550
Grants - - - 50,000
Other 2,500 4,190 1,690 4,020
Total Revenues 848,395 931,846 83,451 896,697
Expenditures:
Personnel:
Salaries 210,503 202,839 7,664 199,682
Retirement 6,500 5,620 880 6,217
Health insurance 29,250 32,086 (2,836) 25,827
Travel and training 8,000 2,356 5,644 1,144
Total 254,253 242,901 11,352 232,870
Commodities:
Insurance 20,000 15,097 4,903 17,084
Supplies 77,500 96,539 (19,039) 49,080
System repair and maintenance 140,000 129,377 10,623 37,017
Testing 5,000 1,292 3,708 1,974
Telephone 4,500 4,140 360 4,303
Utilities 50,000 33,437 16,563 33,776
Miscellaneous 8,000 1,484 6,516 1,807
Total 305,000 281,366 23,634 145,041
Contractual:
Legal 65,000 48,184 16,816 69,618
Engineering 60,000 77,343 (17,343) 24,303
Other professional services 25,500 20,954 4,546 1,773
Professional memberships 9,500 5,915 3,585 8,625
Total 160,000 152,396 7,604 104,319
Other:
Transfer to Other Fund 10,000 10,000 - 10,000
Capital projects and purchases 900,000 49,000 851,000 104,514
Water rights 35,000 6,790 28,210 6,482
Total 945,000 65,790 879,210 120,996
Total Expenditures 1,664,253 742,453 921,800 603,226
Excess (Deficiency) of Revenues
Over Expenses (Budget Basis)(815,858) 189,393 1,005,251 293,471
Reconciliation from Budget Basis to GAAP Basis:
Capitalized assets 49,000 88,658
Depreciation (407,318) (400,315)
Excess (Deficiency) of Revenues Over Expenses (GAAP Basis)(168,925) (18,186)
Net Position - Beginning of Year 12,003,144 12,021,330
Net Position - End of Year 11,834,219 12,003,144
2016
Town of Fraser, Colorado
Enterprise Fund
Water Fund
Schedule of Revenues, Expenditures and Change in Net Position
Budget (Non-GAAP) Basis and Actual
With Reconciliation to GAAP Basis
(With Comparative Actual Amounts for 2015)
For the Year Ended December 31, 2016
The accompanying notes are an integral part of these financial statements.
F3
PRELIMINARY DRAFT
2015
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Tap fees 100,000 540,000 440,000 292,500
User fees 694,000 705,295 11,295 645,846
Management fees 29,000 29,000 - 29,000
Interest income 3,200 27,216 24,016 14,690
Grants 30,000 51,778 21,778 46,401
Other - 39 39 -
Total Revenues 856,200 1,353,328 497,128 1,028,437
Expenditures:
Personnel:
Salaries 221,298 201,862 19,436 212,095
Retirement 7,000 5,587 1,413 6,381
Health insurance 30,500 32,030 (1,530) 26,235
Travel and training 7,000 1,460 5,540 839
Total 265,798 240,939 24,859 245,550
Commodities:
Insurance 6,500 3,103 3,397 4,405
Supplies 3,000 1,920 1,080 2,113
System repair and maintenance 344,500 201,432 143,068 208,136
Testing 1,000 - 1,000 -
Telephone 2,000 1,529 471 1,672
Miscellaneous 3,000 675 2,325 165
Total 360,000 208,659 151,341 216,491
Contractual:
Legal 5,000 - 5,000 693
Engineering 5,000 1,008 3,992 8,392
Other professional services 202,346 173,597 28,749 159,357
Treasurer's and bank fees 100 - 100 -
Professional memberships 2,000 5,142 (3,142) 1,525
Total 214,446 179,747 34,699 169,967
Other:
Transfer to Other Fund 10,000 10,000 - 10,000
Capital Reserve payments - - - 33,151
Total 10,000 10,000 - 43,151
Total Expenditures 850,244 639,345 210,899 675,159
Excess (Deficiency) of Revenues
Over Expenses (Budget Basis)5,956 713,983 708,027 353,278
Reconciliation from Budget Basis to GAAP Basis:
Capitalized assets 83,669 132,402
Depreciation (433,887) (428,615)
Excess (Deficiency) of Revenues Over Expenses (GAAP Basis)324,728 57,065
Net Position - Beginning of Year 13,925,492 13,868,427
Net Position - End of Year 14,250,220 13,925,492
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
2016
Town of Fraser, Colorado
Enterprise Fund
Wastewater Fund
Schedule of Revenues, Expenditures and Change in Net Position
Budget (Non-GAAP) Basis and Actual
With Reconciliation to GAAP Basis
The accompanying notes are an integral part of these financial statements.
F4
PRELIMINARY DRAFT
2015
Final Budget
Original and Variance
Final Positive
Budget Actual (Negative)Actual
Revenues:
Other revenue 1,500 1,822 322 -
JFOC operating charges 725,962 622,379 (103,583) 600,208
Interest revenue 12,300 11,528 (772) 12,244
Sale of fixed assets - - - 14,215
Total Revenues 739,762 635,729 (104,033) 626,667
Expenses:
Training programs 2,000 1,435 565 240
Travel, meals and lodging 2,500 575 1,925 95
Meals and entertainment 100 256 (156) 45
Professional fees 159,750 117,473 42,277 4,074
Engineering fees 15,000 5,965 9,035 3,475
Sludge removal 55,000 41,636 13,364 32,520
Other professional services 10,000 3,569 6,431 3,216
Insurance 30,000 24,167 5,833 25,177
Advertising 500 - 500 1,963
Plant maintenance & repair 50,000 24,007 25,993 28,260
Grounds maintenance 1,500 - 1,500 1,104
Equipment rental 500 - 500 -
Professional memberships 500 450 50 -
Operating supplies 65,000 31,938 33,062 32,881
Equipment purchase and repair 15,000 202 14,798 4,445
Testing 65,000 51,491 13,509 39,962
Utilities 162,200 189,854 (27,654) 190,204
Vehicles 7,500 4,115 3,385 7,277
Miscellaneous 1,000 414 586 300
Capital projects 301,000 74,956 226,044 164,632
Payroll expenses 232,913 238,105 (5,192) 224,971
Total Expenses 1,176,963 810,608 366,355 764,841
Excess (Deficiency) of Revenues
Over Expenses (Budget Basis)(437,201) (174,879) 262,322 (138,174)
Reconciliation from Budget Basis to GAAP Basis:
Capital reserve reduced by capital expenses 188,229 164,633
Capital reserve increased by interest income (11,174) (12,244)
Capital reserve increased by other income (1,822) -
Operating reserve increased by interest income (354) -
Proceeds from sale of asset to gain or loss on sale - (14,215)
Excess (Deficiency) of Revenues Over Expenses (GAAP Basis)- -
JFOC Operations
Schedule of Revenues & Expenses
2016
Town of Fraser, Colorado
For the Year Ended December 31, 2016
(With Comparative Actual Amounts for 2015)
Budget (Non-GAAP) Basis and Actual
With Reconciliation to GAAP Basis
The accompanying notes are an integral part of these financial statements.
F5
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ANNUAL HIGHWAYFINANCEREPORT - CY16
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II - RECEIPTS FORROADANDSTREETPURPOSES
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A. Receiptsfromlocalsources
2329628.072. GeneralFundAppropriations:
91,850.473. Other localimposts: fromA.3. 'Total' below)
8,973.344. Miscellaneouslocalreceipts: fromA.4. 'Total' below)
0.005. Transfersfromtollfacilities
6. Proceedsofsaleofbondsandnotes
0.00a. Bonds - Original Issues:
0.00b.Bonds - RefundingIssues:
0.00c. Notes:
2,430,451.88SubTotal:
0.00B. PrivateContributions
II - RECEIPTS FORROADANDSTREET PURPOSES (Detail)
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A.3.Otherlocalimposts
67.81a. PropertyTaxesandAssessments
b. OtherLocalImposts
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1. SalesTaxes: 79498.08
0.002. InfrastructureandImpact Fees:
0.003. Liens:
0.004. Licenses:
12284.585. SpecificOwnership and/orOther:
91,850.47Total: a + b) carriedto 'Otherlocalimposts' above)
A.4.Miscellaneous localreceipts
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3473.34a. Interest onInvestments:
0.00b. Trafficfines & Penalities:
0.00c. ParkingGarageFees:
0.00d. ParkingMeterFees:
0.00e. SaleofSurplusProperty:
0.00f. ChargesforServices:
5500.00g. OtherMisc. Receipts:
0.00h. Other:
8,973.34Total: athrough h) carriedto 'Misclocalreceipts' above)
C. ReceiptsfromStateGovernment
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46157.061. HighwayUserTaxes:
3. OtherStatefunds:
4769.50c. MotorVehicleRegistrations:
d. Other (Specify):
Comments:undefined0.00
e. Other (Specify):
Comments:undefined0.00
50,926.56Total: 1+3c,d,e)
D. ReceiptsfromFederalGovernment
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2. OtherFederalAgencies
0.00a. ForestService:
0.00b. FEMA:
0.00c. HUD:
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d. Federal TransitAdministration: 0.00
0.00e. U.S. CorpofEngineers
0.00f. OtherFederal:
0.00Total: 2a-f)
III - DISBURSEMENTS FORROAD ANDSTREET PURPOSES
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A. Localhighway disbursements
278,378.961. Capitaloutlay: fromA.1.d. 'TotalCapitalOutlay' below)
213588.542. Maintenance:
3. Roadandstreet services
15339.00a. Trafficcontroloperations:
335639.14b.Snowandiceremoval:
0.00c. Other:
61025.304. Generaladministration & miscellaneous
424580.005. Highway lawenforcementandsafety
1,328,550.94Total: A.1-5)
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B. Debtserviceonlocalobligations
1.Bonds
27827.50a.Interest
1125000.00b.Redemption
2.Notes
0.00a.Interest
0.00b.Redemption
1,152,827.50SubTotal: 1+2)
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0.00C. Payments toStateforHighways:
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D. Payments toTollFacilities: 0.00
2,481,378.44TotalDisbursements: A+B+C+D)
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III - DISBURSEMENTS FORROAD ANDSTREET PURPOSES - (Detail)
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A. ONNATIONAL B. OFFNATIONAL
HIGHWAY SYSTEMHIGHWAY SYSTEMC. TOTAL
A.1. CapitalOutlay
0.002303.52 2,303.52a. Right-Of-WayCosts:
47558.7113806.00 61,364.71b. EngineeringCosts:
c. Construction
96799.050.00 96,799.051. NewFacilities:
0.000.00 0.002.Capacity Improvements:
0.00107638.14 107,638.143. SystemPreservation:
0.0010273.54 10,273.544. SystemEnhancement:
214,710.735. TotalConstruction:
278,378.96d. TotalCapitalOutlay: LinesA.1.a. + 1.b. + 1.c.5)
IV. LOCALHIGHWAY DEBTSTATUS
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OPENINGDEBTAMOUNTISSUEDREDEMPTIONSCLOSING DEBT
A. Bonds (Total)
1505000.000.001125000.00 380,000.00
1. Bonds (Refunding
0.000.00 0.00Portion)
0.000.000.00 0.00B. Notes (Total):
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V - LOCAL ROADANDSTREETFUNDBALANCE
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A. Beginning C.Total E. Reconciliation
BalanceB. TotalReceiptsDisbursementsD. EndingBalance
0.000.002,481,378.442,481,378.440.00
Notes & Comments:
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FORMFHWA-536e(Version3.00) - CY16
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