May 15, 2000
TO THE CITIZENS OF LARIMER COUNTY, COLORADO
We submit, for your information and review, the Comprehensive Annual Financial Report of Larimer County, Colorado, for the year ended December 31, 1999.
MANAGEMENT REPRESENTATIONS
This report was prepared by the Department of Accounting and Reporting of the County's Division of Financial Services. The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. To the best of our knowledge the enclosed information is accurate in all material respects and is reported in a manner designed to fairly present the financial activity and results of operations of the various funds and account groups of the County. The Staff has included all disclosures necessary to enable the reader to gain maximum understanding of the County's financial affairs. The organization, form and content of the report conform to the standards of the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, the Government Finance Officers Association and the Colorado State Auditor.
PURPOSE AND CONTENT OF REPORT
The intended purposes of the report are to:
The Comprehensive Annual Financial Report is divided into four sections with the intent to meet the needs of a variety of users:
Introductory Section -- includes the table of contents, this transmittal letter, a reproduction of the Certificate of Achievement for Excellence in Financial Reporting awarded to Larimer County for our 1998 CAFR, and a listing of the County's principal officials and an organization chart.
Financial Section -- consists of the combined General Purpose Financial Statements (GPFS) which provide an overview for those who are interested in less-detailed information about the County's financial position. Following the GPFS are detailed exhibits and schedules applicable to the individual funds and account groups of the County. Descriptions of the nature and purpose of the various fund types and account groups are provided in the Notes to Financial Statements and individual fund descriptions are provided throughout the remainder of the Financial Section.
Statistical Section -- contains comprehensive statistical data relating to Larimer County. This section is designed to provide the user with a broader and more complete understanding of the County's financial history and trends over the ten-year period 1990 through 1999. Also included is social and economic data that will be of value to those desiring non-financial information about the County.
Single Audit Schedules -- includes a schedule of the County's federal financial assistance programs and various independent auditors' reports thereon, necessary to comply with the Single Audit Act of 1984.
THE REPORTING ENTITY AND ITS SERVICES
Larimer County is located in north central Colorado. It is the seventh largest county in Colorado in population, and the ninth largest in size. The County extends to the Continental Divide and covers 2,640 square miles that encompasses some of the finest irrigated farmland in the state, as well as vast stretches of scenic ranch lands, forests and high mountain peaks. Over 50% of Larimer County is publicly owned land, most of which is within Roosevelt National Forest and Rocky Mountain National Park. County population totals 226,084 239,872.. Approximately 25% of County citizens reside in unincorporated areas. Larimer encompassescontains six incorporated towns, and a portion of two other towns. with Fort Collins (pop. 112,912 100,000) and Loveland (pop. 50,400 45,000) are thebeing the largest of these.
Larimer County provides the full range of services contemplated by State Statute. Services include judicial and public safety, consisting of the Sheriff, District Attorney, operation and maintenance of the detention center, and building inspection; planning and zoning; property valuation; tax collection and distribution; vehicle licensing; construction, reconstruction and maintenance of streets, highways and bridges; health, employment and social services; parks and recreation; and general administrative services.
The County is governed by a three member Board of County Commissioners. Commissioners are elected from districts of relatively equal population by the voters at large. They serve staggered four year terms and function as the County's policymaking body. An appointed County Manager is responsible for operations of the County on a daily basis. The County is also served by several other elected officials: assessor, clerk and recorder, coroner, sheriff, treasurer, district attorney, and surveyor.
This report includes all activities for which the Board of County Commissioners is accountable to the citizens of Larimer County, financially or by state statute, in accordance with Governmental Accounting Standards Boards (GASB) Statement 14, "The Financial Reporting Entity". All applicable funds, organizations, institutions, agencies, departments and offices, which are not separate legal entities, are included in these financial statements as part of the "primary government" of Larimer County.
The County considers several entities as 'component units' under governmental accounting standards. Although legally separate, the entities have significant operational or financial relationships with the County. The Larimer County Pest Control District, the Public Trustee, the Larimer County Building Authority and numerous general improvement districts are blended component units. The Public Trustee is a discretely presented component unit. Therefore, the County's financial statements also include these entities.
Larimer County has joined with nineteen other local governments to form the Larimer Emergency Telephone Authority (LETA), and has joined with the City of Fort Collins to purchase and manage property known as Block 31. Larimer County's relationship in these two organizations, referred to as a jointly governed organization and a joint operation, respectively, is discussed in the Notes to Financial Statements. LETA is a separate legal entity and issues its own financial statements. Larimer County reports the receipt and distribution of funds received on behalf of LETA in an agency fund to demonstrate our fiduciary responsibility to the entity.
ECONOMIC CONDITION AND OUTLOOK
Larimer County has a diversified economy ranging from agriculture in the eastern part of the County to the high mountain tourist and recreational areas of Rocky Mountain National Park in the western area. In between these two extremes are major manufacturing, industrial, and technology facilities, as well as a strong retail base. Colorado State University, located in Fort Collins, is highly recognized for its veterinary medicine teaching hospital andas well as its other research facilities. Loveland and Estes Park, in particular, benefit greatly from the tourist industry. Loveland is located on the main highway leading to Rocky Mountain National Park and is renowned for its artist community. Estes Park is situated at the immediate east entrance of the Park. Fort Collins, the County seat, is the regional shopping area for the northeastern section of Colorado, southern Wyoming and western Nebraska.
Economic Condition
Colorado experienced even stronger growth than the rest of the nation during the decade of the 90's.was vigorous Colorado's scenic landscape and abundance of outdoor activities created a significant advantage in luring top companies and workers to the state. Growth was particularly strong in technology industries, financial services, tourism and construction.. Unemployment plunged to 3.3%, the lowest level ever recorded in the state Over 500,000 new jobs were added to the Colorado economy. Major public construction projects included the Denver International Airport, the E-470 highway project and professional baseball and basketball venues. For 1999, the unemployment rate was down to 3%; personal income increased by 8.2%; retail sales went up 6.6%; and nonresidential building posted a 21.3% jump.
Larimer County, with its diverse economic base, was a major contributor to the state's robust economy. Countywide building permits reached a record high of 13,135 in 1999. Cost of construction rose from $142.3 million in 19986 to $175.6 $461 million in 1999 for an increase of 238.4%. Estimated values for residential, commercial and industrial, agricultural and natural resource real property increased an average of 4.65% to a total of $12.7 7 billion dollars. Larimer County's unemployment rate was 3.13.2% and state average and taxable retail sales rose by 97.7%.
Along with much of the front range of Colorado, Larimer County is experiencing healthy population growth. Between 1989 and 1999, County population increased by about 53,700. School enrollment increased by 24% 19% during the same period. The State Demographer projects 269,000240,000 total population by the year 2005.
Analysts predict that Colorado and Larimer County will continue to enjoy a positive economic atmosphere, although growth will be slower than in the 1990's. Strong gains in home equity, financial markets, and wages will continue to push consumer spending for several more years. However, the state may be less attractive to new business due to the tightening of the job market, and increases in housing and commercial leases. While the construction industry will continue its high level of activity and remain an important force in the economy, its growth will be lower than in recent years.
INITIATIVES
Facilities planning and construction was a major emphasis of the County inAs in past years, 1998 was a year during which the County implemented many new and innovative ideas, projects and programs. Some of these activities are highlighted below.
1999. A host of other projects took the stage as well. Some of these activities are highlighted below.
Capital Construction Underway
Voters said 'yes' to a new Larimer County Justice Center and Detention Center Expansion in the Fall of 1997. The County issued $71,010,000 in certificates of participation (COPs) in March of 1998 to finance the projects. This ambitious group of projects includes:
Now two years into the project, the facilities are in various stages of completion. The parking garage opened to the public on November 22, 1999. Its innovative façade looks like a series of brick storefronts, in keeping with the ambiance of downtown Fort Collins. The garage was an immediate success and is well used by County employees, private employers and the public.
Grand openings for both the Justice Center in Fort Collins and the Detention Center Expansion are scheduled by early Fall of 2000. The approximately 150,000 square foot Justice Center includes courtrooms for District, County and Municipal Courts, office space for Judicial Administration, a law library, and underground parking. Groundbreaking for the 36,400 square foot Sheriff's Administration Building occurred in April of this year, with completion scheduled for 2001. The Loveland Justice Center and remodeling projects are in the planning stages.
Events Center and Fairgrounds
The Northern Colorado region has always lacked a venue for large special events. The existing County Fairgrounds, built in the 1940's, partially fills this function, but its aging facilities and poor location fall far short of the growing community's needs. In the Fall of 1998, voters approved a .10 percent sales tax for one year to purchase land for a new Larimer County Fairgrounds and Events Center. With this funding, the County acquired 243 acres of land with access and visibility to Colorado's major north-south transportation corridor, Interstate 25.
One year later, voters approved a twenty-year .15 percent sales tax to construct the Fairgrounds and Events Center facility. Preliminary plans for this exciting project include a 6,000 seat indoor arena with expansion capacity, a large exhibition building, livestock buildings, exhibit space, and a building for 4-H and other community events. To ensure community involvement and adequate planning, the ballot question requires that traffic issues are adequately addressed and private sector participation of not less than $3 million dollars is committed prior to construction. Much work remains to be done prior to groundbreaking, including site development plans, traffic studies, fundraising, marketing and financing plans. The estimated facility opening date is in two years.
Privatization of the County Mental Health Center
Throughout most of Colorado, mental health services are provided by non-profit agencies. Larimer had one of the few county-owned mental health centers. The Center had operated with a deficit for the last three years. The funding problem was compounded by growing demands for mental health services, the Center's aging, inadequate infrastructure, anticipated reductions in government support, and continued growth in payroll expenses. A Blue Ribbon Panel, consisting of seven appointed professionals from throughout the County, was charged with determining the best future governance structure for the center. In May of 1999, the Panel recommended that the Center be changed from a government-operated entity to an independent not-for-profit agency. This change in status would give the Center better access to grant funding, independent control over budget and management, and increased ability to coordinate service delivery with other mental health providers in the area. After a public hearing process, the Board of County Commissioners accepted the recommendation. Following a busy six-month transition period, the Larimer County Mental Health Center became the Larimer Center for Mental Health, a new non-profit agency.
Preserving the Devil's Backbone
One of the most dramatic rock formations in Larimer County is a prominent rock outcrop of Dakota Sandstone know as the 'Devil's Backbone'. This outcrop is part of a hogback ridge that runs along most of Colorado's Front Range. In previous years, the County's Open Lands Program acquired almost 400 acres of the backbone. In 1999, a three and a half mile nature trail was constructed to allow Larimer County citizens to get at first-hand look at the rock structure. The nature trail was built through the combined efforts of County staff and one hundred and forty-four volunteers. The grand opening of the trail in September of 1999 drew more than 125 nature lovers and volunteers. Visitors enjoyed talking with naturalists who were on hand with information and historical lore about the Backbone. As of the end of 1999, the Larimer County Open Lands Program has preserved over 8,000 acres of land through acquisition and conservation easements. Plans for the future include trail additions, interpretive programs for the public, and more land protection.
New Facilities
The Larimer County Courthouse was built in 1954 when the population of the County was 50,000. In 1969, as the population neared 90,000, an addition was built. Population has now more than doubled since 1969, while County owned facilities to meet these needs have not increased significantly. Crowded, inadequate, and unsafe conditions exist in some buildings, especially in areas related to law enforcement and justice.
The County placed a facilities funding question on the November 1996 ballot. Entitled Project SAFE, the ballot issue addressed the most critical of the County's building needs. The issue called for a twenty-year .43 of 1% sales tax to fund expansion and operation of a expanded jail; justice centers in Fort Collins and Loveland; remodeling of the existing courthouse in Fort Collins; and a sheriff's administration building. The ballot proposal did not pass, but did win 40% approval with the voters. Using input from voters, the County restructured the facilities project and returned it to the ballot in 1997. Voters indicated that the 1996 ballot question was too complex; therefore the 1997 ballot contained two separate issues. Both issues were passed by the voters in November 1997.
The first approved issue was a .2% seventeen-year sales tax increase for expansion of the County's detention center. This 65,000 square feet addition will almost double the County's existing 309 inmate capacity. A portion of the .2% tax will go towards operation and maintenance of the new facility. The second ballot issue increased sales tax by an additional .2% for the construction of several judicial facilities. These include: 1) a new County courthouse building of approximately 151,300 square feet to include 14 courtrooms; 2) a sheriff's headquarters building to house radio dispatch, patrol, and administration offices; 3) a small courthouse in Loveland, and renovation of the existing Loveland offices; and 4) renovation of the County's administrative offices in Fort Collins. All are scheduled for completion over the next three years.
The County issued $71,010,000 in certificates of participation (COPs) in March of 1998 to finance the facility projects. The insured COPs received an A1 underlying debt rating from Moody's Investors Service, and an A+ from Standard & Poor's. The average yield on the debt is 4.89%.
Planning Division
Completion of the Larimer County Master Plan was a major accomplishment of the Planning Division in 1997. As a part of the Partnership Land Use System (PLUS), the Master Plan provides policy direction for land use and development in the unincorporated area of Larimer County. The next phase of PLUS is completion of a unified Land Use Code to help implement the Master Plan.
Development of the Master Plan involved input from hundreds of citizens over a period of more than three years. Major innovations of the Plan include required clustering of new rural subdivisions to provide up to 80% open space and principles for protection of sensitive natural areas such as wetlands and important wildlife habitat. Adequate public facilities will be required for new development and impact fees will help new development contribute its fair share to expansion of needed facilities. Larimer County received the Governor's 'Smart Growth Award' in 1997 for developing innovative land use management tools.
Health and Human Services Division
Developing strategies for implementing changes brought about by Federal and State welfare reform legislation was a major emphasis of the County in 1997. The Board of County Commissioners created a division of Health and Human Services (HHS), which includes the departments of Health and Environment, Mental Health, Employment and Training, Community Corrections, Community Services, and Extension. HHS directors met regularly to recommend County values for welfare reform, plan methods for client and employer input, and begin the back-breaking work of implementation details. The County philosophy ultimately included tight collaboration, a one-stop concept for client access, intense line-staff input, and strong emphasis upon community building for job retention.
The one-step client access concept began with centers in Loveland and Fort Collins. These centers are staffed by ETS/Community Services, and include Mental Health workers who have drug and alcohol counseling expertise. The mental health workers also provide training to case managers and technicians which help them in identifying client problems.
The community building piece of Larimer's Welfare Reform plan also started in 1997. There is no doubt that people can get jobs, but Larimer believes that the real work is to help clients create their own community network so that they are less likely to come back into the system. The County created a unit dedicated to matching community sponsors with clients. Sponsors can give time, money, or other in-kind services; they can be churches, businesses, civic organizations, or individuals. They might fix cars, provide day care, tutor students, or pay for classes. After the County matches the client with the sponsor, it steps out of the way so that the Community can take over.
Because welfare public policy is seldom based upon real data, the County intends to partner with Colorado State University and others to evaluate which of these interventions are working and what changes need to be made in the future to best invest the County's welfare dollars.
Fleet Services
The Fleet Services Department maintains County vehicles, including heavy equipment, emergency response vehicles and passenger vehicles. During 1997, Fleet completed upgrades which added three refueling sites to the County's fuel management system. The automated fuel system controls dispensing of fuel and tracks information about the transaction. It is activated by a 'memory key' which is issued to each vehicle driver. The memory key has a programmable chip containing driver and vehicle information. To obtain fuel the driver enters the key and the requested password and mileage information. The fuel system sends the transactions by fiber optics to a central controller. Each night, this data is complied into reports which show fuel use by vehicle and department as well as usage by site and the fuel inventory. This system helps the County track and manage the usage of vehicles, as well as ensuring that there is sufficient fuel at each fueling site.
Open Lands
1997 saw continued acquisition of public lands through the County's Open Lands Program. The Program purchases or protects land for open space and wildlife habitats. Trails and recreational areas are developed on portions of the land. Funded by a .25% dedicated sales tax, the program acquired two key properties in 1997. The first property is located along the scenic ridgeline that flanks the Fort Collins-Loveland urban corridor. The second property adds 177 acres to the existing recreational lands around Pinewood Reservoir. Also in 1997, the Open Lands staff organized several educational events designed to inform local landowners on topics such as conservation easements and preserving family lands.
Flood Waters
On July 29, 1997, a devastating flood hit Fort Collins in Larimer County. Although County roads, foothills park trails and neighborhoods outside the city's limits suffered some damage, the worst of the flood was felt in Fort Collins. Five people lost their lives as a result of the flood. Emergency agencies from throughout the area responded immediately with the County's Emergency Management Services Unit through the Sheriff's office and the Health and Human Services Division in full response. In addition, County crews cleared and opened County roads, and Mental Health and Community Services, among other departments, assisted flood victims.
For the first time in our history, on July 30, 1997, the Larimer County Board of Commissioners declared a 'Local Emergency' paving the way for agencies and residents to file for State and Federal aid. Larimer County immediately created a web page on the County's web site, the Virtual Courthouse, to disseminate information. The County's Health Department provided information on safe drinking water, food safety, appropriate immunizations and other hazards. The Extension office and the Road and Bridge departments provided timely information. The County's Landfill offered free drop-offs for flood debris. The Employment and Training Services department developed an outreach plan for those who had lost their jobs due to the flood.
Weeks after the flood many residents were still in need of assistance. Larimer County played a key role in staffing a flood-relief center. Knowing that there were elderly residents who had suffered home damage and for a variety of reasons had not asked for help, the Community Services department responded with a target campaign to aid these people. The County's Building department worked for months after the flood with residents of rural neighborhoods on drainage issues. County staff worked long hours with Federal Emergency Management Agency (FEMA) and Fort Collins officials to receive needed aid. Nearly a year later the County continues work on repairs to foothills park trails.
CHALLENGES
Impact of Growth
Colorado's healthy economy is a mixed blessing to Larimer County. Along with the benefits of growth, the County is experiencing an increasing demand for services as well as intensifying pressure on existing infrastructure and facilities. This pressure heightened by the additional challenge of providing these programs and services within the provisions of the 1992 TABOR ('Taxpayer's Bill of Rights') State constitutional amendment. The amendment limits the growth rate of property tax and most other state and local revenues, and freezes all mill levies at a maximum of their 1992 rate, unless an increase is approved by the voters. It also mandates voter approval for any state or local multi-fiscal year obligation.
After five years of increasingly constrained operation under TABOR, County residents voted to remove the growth rate limitation on County revenues. In addition, the County is implementing a myriad of approaches to manage growth and respond to new demands. These include construction of new facilities, innovative land use planning and creation of special districts.
FINANCIAL INFORMATION
Internal Control Structure
The objective of an internal control structure is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal control should not exceed the benefits derived, and the evaluation of these factors necessarily requires estimates and judgments by management. All internal control structure evaluations occur within the above framework. We believe that the County's internal control structure adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions.
Budgetary Control
The County adopts annual budgets by department for all governmental and proprietary funds., and the Public Trustee component unit. Budgets are requested and adopted on a line-item basis and controlled by the major object classifications of Personnel, Operating Costs and Capital Outlay. The Operating Cost category, in addition to personnel and other operating expenditures and expenses, includes intergovernmental and debt service payments, and operating transfers to other funds. Control is maintained by the two three categories at the division/department level in the General Fund and at the fund level in all other funds. Supplemental appropriations are approved by the Board of County Commissioners as needed during the year to provide for those items that were unknown or unforeseen at the time the budget was originally adopted. In 19997, one supplemental appropriation was adopted.
Encumbrance accounting is employed as an extension of formal budgetary integration. Purchase orders, contracts and commitments are recorded in order to reserve that portion of the applicable appropriation. Encumbrances outstanding at year-end are canceled.
General Governmental Functions
Revenues. The following schedule presents a summary of governmental fund (General, Special Revenue, Debt Service, and Capital Projects Funds) revenues for the fiscal year ended December 31, 1999; and the amount and percentage of increases and decreases in relation to prior year revenues.
Total governmental fund revenues posted a 16.53% gain in 1999. Taxes and intergovernmental revenues continued to be the major sources of County revenues. These two revenue categories also posted the largest dollar increase over 1998. Most of the tax revenue increase was generated by a one-year, .1% sales tax. This voter-approved sales tax funds the acquisition of land for the new Fairgrounds and Events Center. Increases in intergovernmental revenues came from a variety of state and federal grants, including human services, parks, transportation, and community development grants. The large percentage increase in assessments resulted from the creation of two new location improvement districts, which fund road improvements in unincorporated areas of the County. An increase in private mental health grants and major donations to the Open Lands Program contributed to the gain in miscellaneous revenue.
The 'Charges for services' revenue category had the highest percentage increase. This increase is primarily attributed to inmate housing, building inspection and mental health fees. Revenues from assessments declined 16.57% from 1997, because there were no new special assessments levied in 1998 and several old assessments were completed. The formation of special assessment districts has historically provided Larimer County with an effective alternative to increased property taxes for road construction or other capital improvements. Bonds are sold to finance the improvements within a specified geographical area, and the bonds are then repaid over a number of years by levying assessments on the properties benefiting from the improvements. Certain provisions of the TABOR Amendment require a favorable vote of the property owners within the district for bonds to be sold and assessments to be levied.
Expenditures. The schedule below summarizes governmental fund (General, Special Revenue, Debt Service, and Capital Projects Funds) expenditures for fiscal years 1999 and 1998.
Expenditures for 1999 totaled $141.8 million, an $99.6 million, a 6.90% increase of 23.36% over 1998. As in past years, health and human services is the largest single category ($35,799,178), representing over one-fourththird of governmental fund expenditures. This category showed a 16.49% increase in personnel and operating expenditures. Much of this increase came from salary adjustments that occurred when human services employees were moved from the state pay system to the County pay grid and from expanding child welfare services. Capital outlay increases were generated by construction costs for public buildings under the County's Capital Expansion Program. Judicial and public safety expenditures were increased for additional staff and equipment needed to prepare for the expanded Detention Facility. Recreation increases came from purchases of conservation easements under the Open Lands Program. The construction of improved storm drainage in an area of the County subject to frequent flooding accounts for the increase in project expenditures.
General Fund
The County's General Fund balance was $10.3 $6.8 million as of December 31, 1999. Of this amount, $17,518 is reserved for pre-paid expenditures, and $787,114 $348,254 is reserved for emergencies and advances. The remaining $9.5 $6.4 million is designated by the Board for subsequent year's expenditures and other future purposes. The 1999 fund balance is $1.74 million higher than the previous year. The total fund balance is 23% 18% of 1999 General Fund operating expenditures plus net operating transfers. The County Commissioners' goal is to keep fund balance within the 10% - 15% range. The Board anticipates using some fund balance in 2000 for high priority expenditures.
Proprietary Operations
Enterprise Fund. Larimer County maintains a single enterprise fund, the Solid Waste Fund, which accounts for the County's solid and hazardous waste and recycling operations. The Larimer County Landfill received approximately 800 tons of trash per day in 1999, an increase of 7 percent over 1998.
The Natural Resources Department continued to evaluate replacement options for the landfill, which will reach its permitted capacity in 5 to 6 years. The Solid Waste Task Force and Solid Waste Advisory Group have recommended pursuing another vertical expansion of the existing landfill. The Household Hazardous Waste Program removed over 1.6 million pounds of hazardous wastes from the waste stream in 1999. Approximately half of these materials were recycled. The remainder was disposed of at off-site hazardous waste facilities. The Larimer County Recycling Center processed an average of 120 tons of recyclables per day in 1999. That represents a 67% increase in the amount of recyclables processed over the past three years.
Several customer service improvement projects were undertaken in 1999. The landfill entrance was remodeled to improve traffic flow and site safety. The second phase of the entrance project - improving traffic site distance along Taft Hill Road - will be completed in 2001. A new automated lane for commercial trash haulers will be completed in early 2000. Improvements to the recycling drop-off area and used oil tank were also started in 1999 and should be completed by Summer of 2000. Hours at the Household Hazardous Waste Collection Facility were expanded and the County sponsored several one-day household hazardous waste collection events for rural residents.
Enterprise Fund. Larimer County maintains a single enterprise fund, the Solid Waste Fund, which accounts for the County's landfill and recycling operations. The landfill received between 700 and 750 tons of refuse per day in 1998.
The landfill cashiering and accounting system was replaced with a program designed specifically to account for landfill volumes and revenue. This coincided with the replacement of the main gatehouse after more than 20 years of use. A small, dirt-floor building that can be used for a variety of projects completed the facility upgrade. The Household Hazardous Waste Program continued strong in 1998, developing an educational video which plays on local television and in classrooms and public presentations. The Hazardous Waste program branched out to conditionally exempt, small quantity generators (CESQG) of business hazardous waste. Over 200 businesses were served by the program in 1998.
The landfill's largest customer, a commercial trash hauler, began diverting 100% of their waste to their own landfill. This was a big and difficult change in revenue which will challenge the landfill for years to come. With the current expected life of the landfill at eight years, a Solid Waste Task Force was established to research future alternatives. They will continue working in 1999. A long-term liability to pay for closure and post closure care costs in accordance with Environmental Protection Agency requirements has been recorded in the Solid Waste Fund.
Operating revenues for this fund were $5,604,516, an increase of 225.2% over 19987. OOperating income for the period was $1,268,541.
Internal Service Funds. Larimer County's internal service funds include four operating departments and four self-insurance funds. The Print Shop provides supplies and central printing services to County departments. Telecommunications provides for operation and maintenance of the phone system. The Estes Park Common Costs fund allocates the costs of office space for various branch offices located in Estes Park. Fleet Services provides vehicle and equipment maintenance and fuel to County departments. These four operating internal service departments generated a combined net loss of $32,236. The Estes Park Common Costs Fund was closed in 1999. These costs are now accounted for in the Health and Human Services Special Revenue Fund.49,937
The County is self-insured against certain losses and risks. The Dental, Unemployment, and Risk Management (Workers' Compensation and Property and Casualty) self-insurance funds had a combined net loss of $71,696 $5,584. This is consistent with the County's policy of not building up surpluses in these funds. The Self-Insured Reserve Fund, which accounts for the accumulation of any surpluses generated and finances any deficits incurred in the self-insurance programs, closed out 1999 with $4.5 million $4,460,279 in fund equity. This balance is unchanged from the previous year.represents a $251,509 increase (6%) over the previous year. The adequacy of worker's compensation and property and casualty reserves are actuarially determined.
The maximum personal injury limit is $150,000 per person and $600,000 per occurrence as stated in the Colorado Governmental Immunity Act. Property insurance is provided by a commercial insurance company. The policy has a $10,000 deductible and a limit of liability per occurrence of $75,000,000. In 1999, the County purchased commercial excess liability coverage with a $3,000,000 limit and a self-insured retention of $500,000. The self-insured worker's compensation liability is $300,000 per person. Any excess is covered by commercial insurance.
Debt Administration
Larimer County has no general obligation bonded debt. Colorado Revised Statutes provide for a general obligation debt limit of 1.5% of assessed valuation. The County had a general obligation debt capacity of over $29 million in 1999.
At December 31, 1999, Larimer County had the following outstanding long-term debt:
|
Paying Fund |
Type of Debt |
Year of |
Outstanding |
|
Print Shop |
Capital lease |
2001 |
$ 18,647 |
|
Building Authority Debt |
Certificates of Participation |
2012 |
65,565,000 |
|
Open Lands |
Note payable |
varies |
2,002,133 |
|
Solid Waste |
Capital lease |
2004 |
1,506,959 |
|
Debt Service |
Special assessment |
varies |
2,047,259 |
|
$ 71,139,998 |
Of the $71.14.9 million in long-term debt outstanding, only the first three items, totaling $346,677 are is funded from general revenues. The Larimer County Building Authority certificates of participation are funded by a .4% sales tax, approved by the voters in 1997. Open Lands notes are payable from a .25% sales tax which is dedicated to the purchase and maintenance of open space. The Solid Waste (an enterprise fund) capital lease will fund the cost of the capital lease agreement to construct the Recycling Center through the sale of recyclables and dumping fees at the landfill. Sp Special assessment bonds and notes arewill be funded by payments from property owners benefiting from the capital improvements constructed with debt proceeds.
Cash Management
The County Treasurer, by State Statute, is responsible for the collection, distribution and investment of monies for most County funds. Available monies are pooled and invested in a wide variety of secure, legally authorized investments. Interest earned on investments reverts to the General Fund or to other funds for specific purposes when approved by the Board of County Commissioners.
Interest earnings for all County funds amounted to $$2,970,350 5.9 million dollars in 1999. Interest earned on Treasurer's investments was $3.1 was $2.87 million dollars, a 10% 5% decrease from 1998. The average yield on investments was 5.15%. 5.64%. Earnings on Treasurer'spooled investments were allocated as follows:
Other interest earned includes $91,709 paid on special assessments receivable, interest and $5,391 earned by the Sheriff Special Services expendable trust fund, and interest on building authority funds.
INDEPENDENT AUDIT
Colorado lawRevised Statutes requires that the County's financial statements be audited by annual audit be made of the financial affairs and transactions of all funds and activities for all local governments whose revenues or expenditures annually exceed $50,000. The audit is to be performed by an independent certified public accountant or firm of certified public accountants licensed to practice in the State of Colorado. In compliance with this statute, the County engaged the firm of Anderson and Whitney, Certified Public Accountants, to conduct the audit for the year ended December 31, 1999. Anderson and Whitney has issued an unqualified opinion on the County's 1999 financial statements. TheirThe auditors' opinion is included in the Financial Section of this report.
The County has adopted the "Single Audit concept" provided for in the Single Audit Act of 1984 and the Office of Management and Budget Circular A-133 for the audit of federally assisted programs. Results of the Single Audit are included in the Single Audit Schedules Section of this report.
AWARDS RECEIVED
Certificate of Achievement for Excellence in Financial Reporting
The County's 1999 Comprehensive Annual Financial Report (CAFR) was prepared following the guidelines recommended by the
The Government Finance Officers Association of the United States and Canada (GFOA). GFOA awards Certificates of Achievement for Excellence in Financial Reporting to governmental units who publish an easily readable and efficiently organized CAFR that satisfies all legal requirements and conforms to generally accepted accounting principalscomprehensive annual financial report, the contents of which must conform to strict program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. Larimer County has received seventeen consecutive Certificates of Achievement for its 1982 through 1998 CAFRs.Comprehensive Annual Financial Reports for fiscal years 1982 through 1997. Each Certificate is valid for a one-year period. of one year only. We believe our current report continues to conform to Certificate Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
Preparation of this Comprehensive Annual Financial Report was made possible by the dedicated and conscientious efforts of the entire staff of the Department of Accounting and Reporting. The Accounting Operations Section of the department ensures that transactions are processed and reported in an accurate and timely manner. The Financial Reporting Section has the direct responsibility for preparation of the CAFR in accordance with relevant guidelines and standards; and the Administrative Support Section turns scratches and scribbles into a professional and award-winning document. By working together as an interrelated, highly effective team, these individuals promote the excellence we strive for.
Appreciation is also expressed to the Board of County Commissioners who establish the policies which provide for sound financial management, and to all the other elected officials, division directors, department heads and County employees for their cooperation and assistance in matters pertaining to the financial affairs of the County and the preparation of this report.
Respectfully submitted,
Carol L. Block
Financial Services Director
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