BOARD OFFICER APPOINTMENTS Tim Glenn will be unable to attend and asks this be delayed until the April 21 st meeting.

Transcription

1 MEETING OF THE BOARD OF DIRECTORS OF THE SALIDA NATURAL RESOURCE CENTER DEVELOPMENT CORPORATION A COLORADO NON-PROFIT CORPORATION City Council Chambers 448 East 1 st Street City of Salida, Colorado Tuesday, April 7, :00 a.m. The NRCDC Board may take action on and of the following agenda items as presented or modified prior to or during the meeting, and items necessary or convenient to effectuate the agenda items. I. MEETING CALLED TO ORDER II. III. BOARD OFFICER APPOINTMENTS Tim Glenn will be unable to attend and asks this be delayed until the April 21 st meeting. PUBLIC COMMENT IV. APPROVAL OF MINUTES March 17, 2015 V. TREASURER S REPORT VI. SCHEDULED ITEMS 1. Presentation of the 2014 Audit, Lyman Hamblin 2. Updates on potential property sales a. Colorado Parks & Wildlife b. Workforce Housing c. Light Industrial VII. UNSCHEDULED ITEMS VIII. EXECUTIVE SESSION: For the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and/or instructing negotiators, under C.R.S. Section (4)(e). AND THE FOLLOWING ADDITIONAL DETAILS ARE PROVIDED FOR IDENTIFICATION: To discuss negotiations for the possible disposition of land and development opportunities related to Colorado Parks & Wildlife, affordable housing and light industrial uses. IX. REPORT/ACTION ON EXECUTIVE SESSION MATTERS X. ADJOURN Agenda April 7, Regular meetings of the SNRCDC are held on the 1 st and 3 rd Tuesday of each month at 11:00 a.m.

2 MINUTES OF THE BOARD OF DIRECTORS OF SALIDA NATURAL RESOURCE CENTER DEVELOPMENT CORPORATION A COLORADO NON-PROFIT CORPORATION A meeting of the Corporation was held March 17, 2015, at 448 E. 1 st Street, Salida, Colorado beginning at 11:00 a.m. Directors present were Ray Kitson, Jim Miller, Tim Glenn, Walt Harder and Ron Mazzeo. Susan Hughes was absent. Dara MacDonald was also in attendance. Public Comment: Billy Carlisle offered public comment. Approval of Minutes: Minutes of March 3 rd were unanimously approved. Treasurer s Report: MacDonald noted that Treasurer Jim Miller did meet with the auditors while they were in town. The audit is expected for the April 7 th meeting and with the auditor in attendance at the meeting that day. Scheduled Items: 1. Update on potential property sales: a. CO Parks & Wildlife MacDonald noted that an update would be provided during the executive session. b. Workforce Housing Presentation by Housing Options and partners. Motion to approve Resolution was unanimously approved. c. Light Industrial No update. 2. Resolution , Workforce Housing Recommendation Dan Osborn, Community Development Director, presented the agenda item. Representatives from Housing Options, LLC and their partners provided a presentation of their proposal and answered questions from the Board. Resolution selecting Housing Options, LLC as the preferred developer for workforce housing on Vandaveer Ranch was unanimously approved. 3. Board Appointments - MacDonald update the Board that City Council will be considering Board appointments at their regular meeting that evening. Unscheduled Items: None Executive Session: An executive session was held: For the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and/or instructing negotiators, under C.R.S. Section (4)(e). AND THE FOLLOWING ADDITIONAL DETAILS ARE PROVIDED FOR IDENTIFICATION: To discuss negotiations for the possible disposition of land and development opportunities related to Colorado Parks & Wildlife, affordable housing and light industrial uses. The Board entered executive session at 11:40 a.m. and adjourned at 12:08 p.m. Report/Action on Executive Session Matters: The Board directed that negotiations be continued with CPW. NRCDC Minutes

3 Adjourn: The meeting was adjourned at 12:09 p.m. The undersigned have executed these minutes effective this 7 th day of April, 2015., ACTING PRESIDENT DARA MACDONALD, SECRETARY NRCDC Minutes

4 Hamblin and Associates, LLC Certified Public Accountants Member of the American Institute of Certified Public Accountants 3082 Evergreen Parkway, Suite 2 Evergreen, CO (303) March 13, 2015 To the Board of Directors Salida Natural Resource Center Development Corporation We have audited the financial statements of Salida Natural Resource Center Development Corporation for the year ended December 31, 2014, and have issued our report thereon dated March 13, Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 2, Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Salida Natural Resource Center Development Corporation are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during We noted no transactions entered into by the Organization during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was: Management s estimate of the depreciation expense is based on useful lives and straight-line depreciation. We evaluated the key factors and assumptions used to develop the depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 13, 2015.

5 2 Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a second opinion on certain situations. If a consultation involves application of an accounting principle to the Organization s financial statements or a determination of the type of auditor s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Organization s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of Board of Directors and management. of Salida Natural Resource Center Development Corporation and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Hamblin and Associates March 22, 2015 Evergreen, Colorado

6 FINANCIAL STATEMENTS Year Ended December 31, 2014

7 TABLE OF CONTENTS Year Ended December 31, 2014 INDEPENDENT AUDITOR'S REPORT 1 STATEMENT OF NET POSITION 3 STATEMENT OF ACTIVITY 4 STATEMENT OF CASH FLOWS 5 NOTES TO FINANCIAL STATEMENTS 6

8 Hamblin and Associates, LLC Certified Public Accountants Member of the American Institute of Certified Public Accountants 3082 Evergreen Parkway, Suite 2 Evergreen, CO INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Salida Natural Resource Center Development Corporation We have audited the accompanying financial statements of the Salida Natural Resource Center Development Corporation (a nonprofit organization), which comprise the statement of financial position as of December 31, 2014, and related statements of activities and cash flows for the year then ended, 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 an opinion 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 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 opinion. 1

9 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Salida Natural Resource Center Development Corporation as of December 31, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Hamblin and Associates, LLC Evergreen, Colorado March 13,

10 Basic Financial Statements

11 STATEMENT OF FINANCIAL POSITION December 31, 2014 ASSETS CURRENT ASSETS Cash and cash equivalents $ 239,292 CAPITAL ASSETS, NET 6,749,975 OTHER ASSETS Loan origination fees, net 22,244 TOTAL ASSETS $ 7,011,511 LIABILITIES AND NET ASSETS Current Liabilities Current portion of long-term debt $ 102,362 LONG-TERM DEBT, less current portion 4,501,333 TOTAL LIABILITIES 4,603,695 NET ASSETS Unrestricted 2,407,816 TOTAL LIABILITIES AND NET ASSETS $ 7,011,511 The accompanying notes are an integral part of these financial statements. 3

12 STATEMENT OF ACTIVITIES Year ended December 31, 2014 UNRESTRICTED NET ASSETS Revenues Lease - USFS $ 397,963 Pasture leases 1,548 Interest 21 TOTAL REVENUES 399,532 Expenses Program services Advertising and Promotion 221 Insurance Expense:General Liability Insurance 3,954 Interest Expense 236,842 Janitorial Fees 14,757 Licenses & Permits 10 Utilities 16,563 General and Administrative Legal Fees 979 Management Fees 12,080 Professional Fees 6,510 Depreciation 10,417 Amortization 927 TOTAL EXPENSES 303,260 CHANGE IN UNRESTRICTED NET ASSETS 96,272 NET ASSETS AT BEGINNING OF YEAR 2,311,544 NET ASSETS AT END OF YEAR $ 2,407,816 The accompanying notes are an integral part of these financial statements. 4

13 STATEMENT OF CASH FLOWS Year ended December 31, 2014 Cash flows from operating activities: Change in net assets $ 96,272 Adjustments to reconcile net assets to net cash provided by operating activities: Depreciation and amortization 11,344 Changes in assets and liabilities Increase (decrease) in: Loan (98,673) Net cash provided by operating activities 8,943 Net increase (decrease) in cash and cash equivalents 8,943 Cash and cash equivalents, beginning of period 230,349 Cash and cash equivalents, end of period $ 239,292 The accompanying notes are an integral part of these financial statements. 5

14 NOTES TO FINANCIAL STATEMENTS December 31, 2014 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES Principal Business The Salida Natural Resource Center Development Corporation (the Corporation) was incorporated December 18, 2009 as a Colorado non-profit corporation. The Corporation was organized to be operated exclusively on behalf of and for the benefit and in furtherance of the purposes of the City of Salida, Colorado, and its inhabitants regarding a Natural Resource Center Development. The City of Salida has evaluated this relationship between the City and the Corporation, and determined that the Corporation is not a government unit and therefore, cannot be treated as component unit of the City. The Corporation's purposes are the acquisition, construction, operation and maintenance of public improvements, including payment of obligations of the Corporation. The Corporation does not receive financial support from the City of Salida. Financial Statement Presentation In accordance with generally accepted accounting principles for non-profit organizations, net assets, revenues, expenses, gains and losses are classified based on donor imposed restrictions. Accordingly, net assets of the Corporation and changes therein are classified as reported as follows: Unrestricted Resources over which the board of directors has discretionary control. Designated amounts represent those revenues that the board has set aside for a particular purpose. Temporarily Restricted Those resources subject to donor imposed restrictions that will be satisfied by actions of the Corporation or passage of time. Permanently Restricted Those resources subject to a donor imposed restriction that will be maintained permanently by the Corporation. At December 31, 2014, the Corporation had only unrestricted net assets. Cash and Cash Equivalents The Corporation includes all cash accounts that are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with an original maturity of three months or less as cash and cash equivalents. Accounts Receivable Accounts receivable are stated at net realizable value. The Corporation accounts for uncollectible accounts by use of the reserve method. At December 31, 2014, no allowance for uncollectible accounts was deemed necessary. 6

15 NOTES TO FINANCIAL STATEMENTS December 31, 2014 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Land, Building and Equipment Land, building and equipment is stated at cost and is depreciated over the following estimated useful lives using the straight-line method: Years Land Improvements 5 Building and Improvements 5-40 Furniture and Equipment 5-7 Leased Equipment 5-7 Computer Equipment & Software 3-5 Investments The Corporation had no investments at year ended December 31, Fair Value Measurements In accordance with fair value measurements, the Corporation categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Financial assets and liabilities recorded on the consolidating balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical investments, such as stocks, corporate and government bonds. The Association has the ability to access the holding and quoted prices as of the measurement date. Level 2 Inputs, other than quoted prices, that are observable for the asset or liability either directly or indirectly, including inputs from markets that are not considered to be active. Level 3 Inputs that are unobservable. Unobservable inputs reflect the Association s own assumptions about the factors market participants would use in pricing an investment, and is based on the best information available in the circumstances. 7

16 NOTES TO FINANCIAL STATEMENTS December 31, 2014 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition Revenue is recognized when the earnings process is complete, not necessarily when cash is received, in accordance with generally accepted accounting principles. Advertising Costs Advertising costs are charged to expense when the advertising first occurs. Advertising costs amounted to $221 at December 31, Advertising primarily relates to expenses associated with operations of the Corporation. Concentrations of Credit Risks Cash and cash equivalents at times may exceed insured limits. Cash and cash equivalents in excess of FDIC and similar insurance coverage amounts are subject to the usual banking risks of funds in excess of those limits. Investments are subject to the usual market risks. As of December 31, 2014, the Corporation has no investments. Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates include the lives used for depreciation of property and equipment and allocation of costs between the various programs and expense categories. Actual results could differ from those estimates. Tax Exempt Status The Corporation is exempt from State income taxes by Colorado tax-exempt corporation registration. As an instrumentality of the City, the Corporation is exempt from Federal income taxes under Section 115 of the Internal Revenue Code. Contributions to the Corporation do not qualify as a charitable contribution deduction for donors. The Corporation has adopted the income tax standard regarding the recognition and measurement of uncertain tax positions. This standard has no impact on the Corporation s financial statements for the year ended December 31, Subsequent Events In preparing these financial statements, the Corporation has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were available to be issued, which is March 13,

17 NOTES TO FINANCIAL STATEMENTS December 31, 2014 NOTE 2 CAPITAL ASSETS - LAND, BUILDINGS AND EQUIPMENT Changes to land, buildings and equipment consist of the following: Capital assests not being depreciated: Balance Balance 1/1/2014 Additions Deletions 12/31/2014 Land $ 2,699,848 $ $ $ 2,699,848 Capital assets being depreciated: NRC Building 4,060,544 4,060,544 Less accumulated depreciation: NRC Building (10,417) (10,417) Total Net Capital Assets $ 6,760,392 $ (10,417) $ $ 6,749,975 NOTE 3 INTANGIBLE ASSETS Balance Balance 1/1/2014 Additions Deletions 12/31/2014 Loan origination fees $ 23,171 $ $ $ 23,171 Accumulated amortization (927) (927) Net Loan Origination Fees $ 23,171 $ (927) $ $ 22,244 NOTE 4 LONG-TERM DEBT Changes to long-term debt for the Corporation during the year were: Balance Balance Due Within 1/1/2014 Additions Deletions 12/31/2014 One Year High Country Bank $ 4,690,670 $ - $ (97,259) $ 4,593,412 $ 102,362 9

18 NOTE 4 LONG-TERM DEBT (CONTINUED) NOTES TO FINANCIAL STATEMENTS December 31, 2014 In August 2013, the Corporation obtained a 25-year, 5.125% loan with High Country Bank for $4,722,000. Payments are due monthly at $27,949 with the final payment due on August 28, The payment schedule is as follows: Balance Year Principal Interest Total December $ 102,362 $ 233,030 $ 335,392 $ 4,491, , , ,392 4,383, , , ,392 4,269, , , ,392 4,150, , , ,392 4,024, , ,928 1,676,960 3,290, , ,053 1,676,960 2,343, ,224, ,861 1,676,960 1,118, ,118, ,808 1,229,770 - $ 4,593,412 $ 3,344,197 $ 7,937,609 NOTE 5 PROPERTY AND BUILDING LEASES The Corporation leases out property and buildings to tenants with terms and payment information summarized below. Monthly Future minimum rents Term rent USFS Bldg 20 Years $ 33,295 $ 399,540 $ 399,540 $ 399,540 $ 399,540 $ 399,540 Pasture Yearly 238 2, $ 402,396 $ 399,540 $ 399,540 $ 399,540 $ 399,540 NOTE 6 RELATED PARTY TRANSACTIONS The Corporation contracts with the City of Salida for janitorial, legal, management and professional services. Total payments made to the City of Salida for these services during the year ended December 31, 2014 was $34,