2005 Annual Comprehensive Financial Report

Home Browse Search

million; � Complete acable television franchise agreement with Comoast � Emphasizing the Windy Gap FinnmQ Project to increase raw water storage at a cost of$87 million; � Participating in US 36 Environmental Impact Statement process for long term improvements to US3Oand additional mass transit; � Complete over S2.3 million in street improvements including asphalt and concrete replacement: r? �r � Complete the expansion ofCity Shops at acost of$370.UOO; ' 7 � Complete the renovation ofCity Hall atanestimated cost of$1.6million. FINANCIAL INFORMATION Management ofthe City ksresponsible for establishing and maintaining internal controls that are designed to ensure that the assets of the City are protected from loss, theft or misuse. Also, management ensures that financial statements are prepared in conformity with generally accepted accounting principles through the compilation Ofadequate accounting data. Internal controls are designed toprovide reasonable, but not absolute, assurance that these objectives are met. The concept ofreasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived-, and (2) the valuation of costs and benefits requires estimates and judgments bymanagement, Budgetary Controls. The City maintains budgetary controls. The objective ofthese budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) isestablished bvfund. The City also maintains anencumbrance accounting system oaone technique ofaccomplishing budgetary control. Encumbered amounts lapse atyear-end; however. encumbrances are generally re -appropriated the following year. As demonstrated by the statements and schedules included in the financial section of the report, the City continues tomeet its responsibility for sound financial management. Cash Management. Cash temporarily idle during the year was invested in demand deposits, time deposits, and U.S. Treasury and agency obligations. The average yield on investments was 2.8%. The City earned interest revenue of$7DS.8GO on all investments for the year ended December 31. 2005. a decrease of $186.377from 2UO4. Investment earnings decrease ascash funded construction projects suchasthenevv Library and Community park near completion. The City'einvestment policy istominimize credit and market risks while maintaining acompetitive yield onits portfolio, Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City, its agent or a financial institution's trust department in the C/b/'snanne. All investments held by the City during the year, and at December 31, 2005, are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board. Risk Management. The primary objective of the City's risk management program is to protect against loss or (osoes, which would significantly affect personnel, prnpehy. the budged or the ability of the City to fulfill its responsibility tothe taxpayer and the public, Potentially hazardous hah exposures are evaluated on an ongoing basis and, where feasible and cost effective, reduced or eliminated. The City retains risk for its general liability up to the limit of governmental immunity, Colorado Law grants governmental immunity to all governments, which limits the loss on any one claim to $150,000 per person, and $OO8.O0Oper occurrence. The City also carries excess coverage for those claims that would not fall under the governmental immunity. The insurance coverage for Workers' Compensation is through Pinnacol Assurance. 03)