COMPREHENSIVE ANNUAL FINANCIAL REPORT

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2 Hyland Hills Park and Recreation District Adams County, Colorado COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEARS ENDED DECEMBER 31, 2012 AND 2011 Prepared by: Finance Department Michael Tilger Director of Finance

3 HYLAND HILLS PARK AND RECREATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal years ended December 31, 2012 and 2011 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Organizational Chart Principal Officials GFOA Certificate Page No. i - iv v vi vii FINANCIAL SECTION Independent Auditors' Report 1-2 Management's Discussion and Analysis 3-7 Basic Financial Statements Balance Sheet 9 Statement of Revenues, Expenses and Changes in Fund Net Position 10 Statement of Cash Flows Notes to the Financial Statements Supplementary Information Schedule of Revenues and Expenditures Actual and Budget (NON-GAAP Budgetary Basis) and STATISTICAL SECTION Table No. Page No. Fund Net Position by Component 1 36 Changes in Fund Net Position 2 37 Operating Revenues by Source Operating Expenses by Source

4 TABLE OF CONTENTS (CONTINUED) STATISTICAL SECTION (Continued) Table No. Page No. Non-operating Revenues and Expenses 5 42 Property Tax Levies and Collections 6 43 Assessed and Estimated Actual Value of Taxable Property 7 44 Ratios of Outstanding Debt by Type 8 45 Ratios of Outstanding General Obligation Debt 9 46 Computation of Direct and Overlapping Bonded Debt Computation of Pledged-Revenue Coverage Demographic Information Principal Employers of Adams County Number of Full Time Employees by Department Attendance for Recreational Facilities Miscellaneous Statistics 16 54

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11 HYLAND HILLS PARK and RECREATION DISTRICT PRINCIPAL OFFICIALS December 31, 2012 Board of Directors President...Donald Ciancio, II Vice President...Nicholas McCoy Treasurer... Sarah Heil Secretary...Thomas Lynch Assistant Secretary Philip Roan Administrative Staff Executive Director...Greg Mastriona Deputy Director and Chief Financial Officer... Yvonne Fischbach Administrative Counsel...Richard Fuller Adventure Golf Manager Ken Ciancio Director of Communications Joann Cortez District Engineer... Harlan Bryant Ice Centre General Manager... Bob Bebber Parks Superintendent... Rush Calkins Planner... Terry Barnhart Recreation Superintendent...Joe Demers Water World General Manager... Steve Loose vi

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16 MANAGEMENT S DISCUSSION AND ANALYSIS This discussion and analysis of the financial performance of the Hyland Hills Park and Recreation District (the District) provides an overview of the District s financial activities for the fiscal year ended December 31, Please read in conjunction with the transmittal letter at the beginning of this Comprehensive Annual Financial Report, and the financial statements and accompanying notes. FINANCIAL HIGHLIGHTS The District s net fund position increased by $2,757,754 or 10.3%. During the year, the District s operating revenues increased by $1,691,561 or 8.0%, and operating expenses increased by $878,197 or 4.6%. Water World revenues increased by more than $1,342,217 due to a price increase for 2012, and steady attendance figures. Water World expenditures increased by $539,471 in Adventure Golf had a consistent attendance year and revenues increased by $81,385, while expenses increased by $23,966. Revenues at the Greg Mastriona Golf Courses at Hyland Hills increased by $203,380, primarily due to increased rounds during January and December of USING THIS FINANCIAL REPORT This annual financial report consists of three parts: Management s Discussion and Analysis Financial Statements Statistical Information The financial statements also include notes that provide additional information to some of the information in the financial statements. REQUIRED FINANCIAL STATEMENTS The financial statements of the District report information about the District using accounting methods similar to those used by private sector companies. These statements offer important financial information about the District and its activities. Balance Sheet The Balance Sheet provides information about the nature and amounts of investments in resources (assets) and obligations to District creditors (liabilities). The Balance Sheet is one way to measure the District s financial position. Page 3

17 Statement of Revenues, Expenses and Changes in Fund Net Position This statement measures the results of the District s operations during the past year. The statement presents the income and expenditures of the District and enables the reader to determine whether the District has successfully recovered its costs through its user fees and other revenues. Statement of Cash Flows The final required financial statement is the Statement of Cash Flows. This statement provides the reader with information about the sources and uses of the District s cash during the year. The statement includes cash activity for operations, non-capital financing activities, capital and related financing activities and investing activities. The statement provides a comprehensive summary to the changes in cash and cash equivalents for the District during the fiscal year. FINANCIAL ANALYSIS OF THE DISTRICT One of the most important questions asked about the District s finances is Is the District as a whole better off or worse off as a result of this year s activities? The Balance Sheet and the Statement of Revenues, Expenses and Changes in Fund Net Position report information about the District s activities in a way that can help answer that question. These two statements report the District s net fund position and annual changes in net fund position. Over time, increases or decreases in the District s net fund position are one indicator of whether its financial health is improving. However, other non-financial factors, such as changes in economic conditions, population changes and, specifically for the District, severe weather changes, must also be considered. BALANCE SHEET As part of our analysis, we provide a summary of the District s Balance Sheet as presented below. Summarized Balance Sheet Change Change 2012 From From Current Assets $ 17,126,591 $ 526,595 $ 16,599,996 $ 684,955 $ 15,915,041 Capital Assets 51,230,767 3,351,073 47,879,694 2,884,827 44,994,867 Other Assets 4,687,129 (4,482,186) 9,169,315 (2,078,900) 11,248,215 Total Assets 73,044,487 (604,518) 73,649,005 1,490,882 72,158,123 Current Liabilities 8,828,768 (235,015) 9,063, ,203 8,803,580 Long-term Liabilities 34,756,488 (3,127,257) 37,883,745 (864,029) 38,747,774 Total Liabilities 43,585,256 (3,362,272) 46,947,528 (603,826) 47,551,354 Net Investment in Capital Assets 12,792,657 2,383,107 10,409,550 1,059,716 9,349,834 Restricted 2,322,383 (4,525,129) 6,847,512 (2,213,817) 9,061,329 Unrestricted 14,344,191 4,899,776 9,444,415 3,248,809 6,195,606 Total Fund Net Position $ 29,459,231 $ 2,757,754 $ 26,701,477 $ 2,094,708 $ 24,606,769 Page 4

18 As seen in the Balance Sheet summary, the District s net fund position increased by $2,757,754 in 2012, which followed an increase of $2,094,708 from 2010 to Current assets increased $526,595 from 2011, mainly due to increased cash and cash equivalents, but was slightly lower than the $684,955 increase from 2010 to Liabilities decreased in 2012 compared to 2011 due to a number of bonds and leases being paid off in 2012, whereas 2011 showed a slight decrease in liabilities compared to While the Balance Sheet shows the change in financial position of the District, the Statement of Revenues, Expenses and Changes in Fund Net Position provides the information as to the source of this overall change. ACTIVITIES A summary of the District s Statement of Revenues, Expenses and Changes in Fund Net Position: Summarized Statement of Revenues, Expenses and Changes in Fund Net Position Change Change 2012 From From Operating Revenues Fees and Charges $ 22,355,585 $ 1,668,833 $ 20,686,752 $ 481,817 $ 20,204,935 Conservation Trust Fund 535,594 18, ,776 4, ,797 Other 64,976 3,910 61,066 (12,637) 73,703 Non-operating Revenues Taxes 4,723,401 (63,004) 4,786,405 (51,143) 4,837,548 Interest Income 65,398 (36,973) 102,371 (17,123) 119,494 Gain on Sale of Capital Assets 21,200 (58,174) 79,374 74,507 4,867 Grants (3,000) 3,000 (106,802) 109,802 Income from Joint Venture 194,041 (3,371) 197,412 95, ,158 Total Revenues 27,960,195 1,527,039 26,433, ,852 25,964,304 Operating Expense 19,897, ,197 19,019,802 1,087,818 17,931,984 Depreciation and Amortization 3,442,764 64,559 3,378,205 64,711 3,313,494 Interest Expense 1,861,678 (78,763) 1,940, ,927 1,541,514 Total Expenses 25,202, ,993 24,338,448 1,551,456 22,786,992 Change in Net Fund Position 2,757, ,046 2,094,708 (1,082,604) 3,177,312 Beginning Net Fund Position 26,701,477 2,094,708 24,606,769 3,177,312 21,429,457 Ending Net Fund Position $ 29,459,231 $ 2,757,754 $ 26,701,477 $ 2,094,708 $ 24,606,769 As displayed above, in 2012, the District s net fund position increased by $2,757,754 over 2011, an increase of 10.3%, primarily due to a price increase at Water World, increased Adventure Golf revenue, and a slight increase in golf course revenue. This percentage was slightly more than the increase between 2011 and 2010, which was 8.5%, mainly due to increased attendance at Water World in The Greg Mastriona Golf Courses at Hyland Hills had an increase in rounds and revenues, due to warmer weather in January and December of Total operating expenses increased in 2012 as repair and maintenance costs continue to rise throughout the District. Page 5

19 CAPITAL ASSETS At December 31, 2012, the District had over $51.2 million invested in a broad range of capital assets, net of accumulated depreciation. This figure increased significantly as the District completed construction of two major rides at Water World and a new clubhouse at The Greg Mastriona Golf Courses at Hyland Hills. The following schedule summarizes the District s capital assets, and changes from 2010 to 2011, and 2011 to 2012: Summary of Capital Assets Change Change 2012 From From Buildings $ 18,494,854 $ 4,353,356 $ 14,141,498 $ (1,140,514) $ 15,282,012 Improvements and Land/Water Shares 67,009,162 1,792,847 65,216, ,630 64,921,685 Equipment and Furnishings 19,513,797 4,955,828 14,557, ,145 13,962,824 Construction in Progress 27,847 (4,523,891) 4,551,738 4,018, ,651 Total Capital Assets 105,045,660 6,578,140 98,467,520 3,767,348 94,700,172 Less Accumulated Depreciation (53,814,893) (3,227,067) (50,587,826) (882,521) (49,705,305) Net Capital Assets $ 51,230,767 $ 3,351,073 $ 47,879,694 $ 2,884,827 $ 44,994,867 The District completed the Double Dare and Mile High Flyer projects at Water World, and also completed the construction of the new Clubhouse at the Greg Mastriona Golf Courses at Hyland Hills in June of These projects will be reflected in the major difference between total capital assets from 2011 to Additional information for the District s Capital Assets is contained in note 4 on pages DEBT ADMINISTRATION At year-end, the District had $5,683,380, in outstanding Lease Obligations, which reflects two new equipment leases for the District. In addition, the District had $33,065,000 in Bonds Payable at the end of 2012, which was comprised of $21,715,000 in Revenue Bonds and $11,350,000 in General Obligation Bonds. Additional information for both the bonds and leases are contained in notes 7 and 8 on pages of this report. Page 6

20 ECONOMIC FACTORS AND NEXT YEAR S BUDGET RATES The Board of Directors considers many factors when setting the District s 2013 budget, including user fees and charges. The Board of Directors has appropriated funds for 2013 compared to 2012 and 2011 appropriations as follows: Revenues Fees and Charges $ 24,213,859 $ 23,363,421 $ 22,206,393 Conservation Trust Fund 500, , ,000 Taxes 4,859,309 4,749,964 4,836,965 Interest Income 47, , ,300 Bond/Lease Proceeds 627, , ,500 Other 83,000 79, ,301 Total Revenues 30,330,668 29,589,885 28,569,459 Expenses Operating Expenses 24,917,570 23,728,254 22,915,679 Conservation Trust Fund 500, , ,000 Capital Outlay 63,424 2,794, ,233 Debt Service 4,060,901 4,371,456 4,065,937 Reserves and Contingencies 12,536,687 14,152,418 10,781,381 Other Total Expenses $ 42,078,582 $ 45,546,610 $ 38,415,230 In setting the District s 2013 budget, the economy continues to be the major concern. CONTACTING THE DISTRICT S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the District s finances and to demonstrate the District s accountability for the money it receives. If you have any questions about this report or need additional financial information, please contact Michael Tilger, Director of Finance, at the following: Hyland Hills Park and Recreation District 8801 N. Pecos St. Federal Heights, CO mtilger@hylandhills.org Page 7

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22 HYLAND HILLS PARK AND RECREATION DISTRICT BALANCE SHEET DECEMBER 31, 2012 AND 2011 ASSETS CURRENT ASSETS Cash and Cash Equivalents (Note 3) $ 8,088,051 $ 3,420,720 Investments (Note 3) 3,699,722 7,732,403 Receivables 161, ,010 Due from Ice Centre (Note 6) 97, ,205 Prepaid Expense 242, ,339 Property Taxes Receivable 4,582,483 4,483,140 Inventories 255, ,179 Total Current Assets 17,126,591 16,599,996 NONCURRENT ASSETS Capital Assets - Net of Accumulated Depreciation (Note 4) 51,230,767 47,879,694 Cash and Cash Equivalents-Restricted (Notes 3 & 5) 49,416 98,034 Investments - Restricted (Notes 3 & 5) 2,272,967 6,749,478 Investment in Joint Venture 1,286,093 1,143,096 Bond and Lease Issue and Discount Costs 1,078,653 1,178,707 Total Noncurrent Assets 55,917,896 57,049,009 Total Assets 73,044,487 73,649,005 LIABILITIES AND FUND NET POSITION LIABILITIES CURRENT LIABILITIES Accounts Payable and Accrued Expenses 424, ,579 Accrued Interest Payable 76,113 82,861 Leases Payable - Current Portion (Note 7) 1,187,901 1,085,857 Bonds Payable - Current Portion (Note 8) 2,543,137 2,763,587 Unearned Revenues 4,597,364 4,469,899 Total Current Liabilities 8,828,768 9,063,783 LONG-TERM LIABILITIES Leases Payable (Note 7) 4,495,479 5,079,599 Bonds Payable (Note 8) 30,261,009 32,804,146 Total Long-Term Liabilities 34,756,488 37,883,745 Total Liabilities 43,585,256 46,947,528 FUND NET POSITION Net Investment in Capital Assets 12,792,657 10,409,550 Restricted for: Capital Projects (Note 5) (expendable) 49,416 4,263,045 Debt Service (Note 5) (expendable) 2,272,967 2,584,467 Unrestricted 14,344,191 9,444,415 Total Fund Net Position 29,459,231 26,701,477 Total Liabilities and Fund Net Position $ 73,044,487 $ 73,649,005 The accompanying notes are an integral part of the financial statements Page 9

23 HYLAND HILLS PARK AND RECREATION DISTRICT STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 OPERATING REVENUES Fees and Charges Pledged as Security for Revenue Bonds $ 22,319,895 $ 20,639,326 Fees and Charges 35,690 47,426 Conservation Trust Fund 535, ,776 Other 64,976 61,066 Total Operating Revenues 22,956,155 21,264,594 OPERATING EXPENSES General and Administrative 3,501,842 3,261,170 Parks 1,753,913 1,636,805 Golf Course and Pro Shop 2,068,417 1,942,005 Recreation 1,789,034 1,806,856 Swimming Pools and Aquatics 179, ,856 Carroll Butts Athletic Park 250, ,086 Golf Course Concessions 153,625 98,157 Water World 9,152,907 8,613,436 Racquetball Courts 25,531 Adventure Golf 980, ,218 Conservation Trust Fund 67, ,682 Total Operating Expenses 19,897,999 19,019,802 INCOME FROM OPERATIONS BEFORE DEPRECIATION AND AMORTIZATION 3,058,156 2,244,792 Depreciation and Amortization (3,442,764) (3,378,205) NET LOSS FROM OPERATIONS (384,608) (1,133,413) NON-OPERATING REVENUES (EXPENSES) Interest Expense (1,861,678) (1,940,441) Taxes 4,723,401 4,786,405 Interest Income 65, ,371 Income from Joint Venture (Note 6) 194, ,412 Gain on Sale of Capital Assets 21,200 79,374 Grants 3,000 Total Non-Operating Revenues (Expenses) 3,142,362 3,228,121 CHANGE IN FUND NET POSITION 2,757,754 2,094,708 FUND NET POSITION, Beginning of Year 26,701,477 24,606,769 FUND NET POSITION, End of Year $ 29,459,231 $ 26,701,477 The accompanying notes are an integral part of the financial statements Page 10

24 HYLAND HILLS PARK AND RECREATION DISTRICT STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 CASH FLOW FROM OPERATING ACTIVITIES Cash Received From Customers $ 22,652,904 $ 20,723,003 Cash Payments for Operations and Supplies for Goods and Services (10,250,089) (9,431,666) Cash Payments to Employees (9,842,357) (9,494,354) Conservation Trust Fund Income 535, ,776 Conservation Trust Fund Expense (67,824) (244,682) Net Cash Provided by Operating Activities 3,028,228 2,069,077 CASH FLOW FROM NON-CAPITAL FINANCING ACTIVITIES Property Taxes 4,751,523 4,780,562 Grants Received 3,000 Distribution from/to Ice Centre 51,044 (68,428) Net Cash Provided by Non-Capital Financing Activities 4,802,567 4,715,134 CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest Paid on Bonds and Leases (1,812,013) (1,824,196) Acquisition of Capital Assets (6,775,190) (6,350,552) Proceeds From Sale of Capital Assets 21,200 79,374 Lease Proceeds Received 746,233 3,100,000 Bond and Lease Issuance Costs Paid (11,175) (37,749) Lease Principal Payments Made During the Year (1,228,309) (1,175,919) Bond Principal Payments Made During the Year (2,820,000) (2,430,000) Net Cash Used for Capital and Related Financing Activities (11,879,254) (8,639,042) CASH FLOW FROM INVESTING ACTIVITIES Proceeds from Sale of Investments 13,889,040 6,799,988 Purchase of Investments (5,287,266) (7,612,175) Interest on Investments 65, ,371 Net Cash Provided by (Used for) Investing Activities 8,667,172 (709,816) Net Increase (Decrease) in Cash and Cash Equivalents 4,618,713 (2,564,647) Cash and Cash Equivalents, Beginning of Year 3,518,754 6,083,401 Cash and Cash Equivalents, End of Year 8,137,467 3,518,754 Cash and Cash Equivalents-Unrestricted 8,088,051 3,420,720 Cash and Cash Equivalents-Restricted 49,416 98,034 Cash and Cash Equivalents, End of Year $ 8,137,467 $ 3,518,754 The accompanying notes are an integral part of the financial statements Page 11

25 HYLAND HILLS PARK AND RECREATION DISTRICT STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 RECONCILIATION OF OPERATING (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating (Loss) $ (384,608) $ (1,133,413) Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities: Depreciation and Amortization 3,442,764 3,378,205 Changes in Assets and Liabilities Receivables 175,500 (67,889) Due from Ice Centre 56,843 43,074 Inventories (3,840) 29,967 Prepaid Expense (21,105) (13,161) Accounts Payable (237,326) (167,706) Net Cash Provided by Operating Activities 3,028,228 2,069,077 NON-CASH TRANSACTIONS Income from Joint Venture $ 194,041 $ 197,412 The accompanying notes are an integral part of the financial statements Page 12

26 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2012 AND 2011 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Hyland Hills Park and Recreation District s mission is to provide the finest recreational services and park facilities for the residents of its district. The accounting system of the District is organized as a single enterprise fund. An enterprise fund accounts for operations that are financed and operated in a manner similar to a private business enterprise where the intent of the District is that the costs (expenses, including depreciation) of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. The acquisition, maintenance and improvement of physical plant facilities required to provide these services are financed from existing cash resources, the issuance of bonds, and other District funds. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF PRESENTATION The District s funds are accounted for using the economic resources measurement focus and the accrual basis of accounting; accordingly, revenues are recognized when earned and measurable, and expenses are recognized in the period incurred. Operating revenues are those revenues generated directly from the primary activities of the District. Operating expenses are necessary costs to provide these goods or services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The District applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted assets are available. Merchandise INVENTORY held for resale is recorded at cost using the FIFO (first-in, first-out) method of valuation. INVESTMENTS are recorded at fair value. For purposes of the statement of cash flows, the District considers all highly liquid investments with an original maturity of 90 days or less (including restricted assets) when purchased to be cash equivalents. The preparation of the Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The District believes that the techniques and assumptions used in establishing these estimates are appropriate. COMPENSATED ABSENCES The District provides annual paid vacation leave for all eligible employees. Vacation leave accrued during the first year of District employment may not be taken until the completion of one year s continuous service. Regular full-time employees accrue sick leave at a rate of one day per month with an unlimited accumulation. Sick leave accumulated in excess of fifty days may be exchanged for special vacation leave at the rate of two days sick leave for one day special vacation leave only after meeting certain criteria. Page 13

27 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) COMPENSATED ABSENCES (CONTINUED) The District provides that a regular full-time employee may be granted a personal leave of absence with pay up to four days within one calendar year. Per District policy, there are no accrued compensated absences, therefore, no liability recorded. PROPERTY TAXES Adams County Treasurer s Office collects property taxes and remits to the District, on a monthly basis, the District s portion of the property taxes based on the District s mill levy. Annual property taxes are levied by the Adams County Assessor s office on assessed valuation as of January 1, and attached as an enforceable lien on the property at that time. Taxpayers may pay property taxes in two equal installments. One-half of the taxes due will become delinquent March 1, after which date interest will be added as provided by law. The remaining half will become delinquent June 16. If the entire annual tax is paid on or before April 30, no interest will be added. Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue, and the receivable is reduced. CAPITAL ASSETS Purchased capital assets are recorded at cost. Donated capital assets are recorded at fair value at date of transfer. Interest on constructed assets is expensed, not capitalized. Assets with a value of greater than $5,000 are capitalized and depreciated over the estimated useful life using the straight line method. Buildings Improvements Other than Buildings Furniture and Equipment years years 5-10 years LIABILITIES Long-term liabilities of the District consisting of capitalized leases, revenue obligations, and general obligations are recorded in the enterprise fund. Principal and accrued interests are recorded as liabilities and are reduced as payments are made. Amounts recorded as current portion represent principal payable within one year and are reclassified into current portion each year. Bond issue and discount costs are capitalized and recorded as other assets and are amortized on a straight line basis over the term of the bond issue. Amortization expense for the years ended December 31, 2012 and 2011, was $111,228 and $118,671, respectively. BUDGET PROCESS The District adopts an annual budget at the end of each year for the following calendar year. All appropriations are adopted by the District at the department level. Unused appropriations expire (lapse) at year-end. Amendment to the budget through supplemental appropriations requires approval of the board of directors, publication of the public hearing dates and proposed supplemental appropriations, the holding of a public hearing, and the filing of the approved supplemental appropriations with the Colorado Division of Local Governments. Page 14

28 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) BUDGET PROCESS (CONTINUED) The District budgets on a non-gaap basis. For budget purposes, bond and lease proceeds are considered revenues. Purchase of capital assets and principal payments of debt are shown as expenditures. Depreciation and amortization of bond issue and discount costs are not budgeted. NOTE 2: THE REPORTING ENTITY In accordance with Governmental Accounting Standards, the District has considered the possibility of inclusion of additional entities in its general purpose financial statements. The definition of the reporting entity is based primarily on financial accountability. The District is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizations if District officials appoint a voting majority of the organization s governing body and either it is able to impose its will on that organization or there is a potential for benefits to, or to impose specific financial burdens on, the District. The District may also be financially accountable for governmental organizations that are fiscally dependent upon it. The District does not exercise such authority over any other entity, and therefore no other entities are included in the District s financial statements. NOTE 3: CASH DEPOSITS AND INVESTMENTS The cash deposits and investments consist of the following: Cash and Cash Equivalents $ 8,137,467 $ 3,518,754 Money Market Account 2,879,472 Certificates of Deposit 3,676,879 5,376,966 Colorado Government Liquid Asset Trust (ColoTrust) 2,295,810 6,225,443 Total Cash Deposits and Investments $ 14,110,156 $ 18,000,635 The cash deposits and investment classifications as shown on the balance sheet are as follows: Cash and Cash Equivalents - Unrestricted $ 8,088,051 $ 3,420,720 Investments - Unrestricted 3,699,722 7,732,403 Cash and Cash Equivalents - Restricted 49,416 98,034 Investments - Restricted 2,272,967 6,749,478 Total Cash Deposits and Investments $ 14,110,156 $ 18,000,635 Page 15

29 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 3: CASH DEPOSITS AND INVESTMENTS (CONTINUED) CASH DEPOSITS The District's deposit and investment policy is to follow the Colorado Public Deposit Protection Act (PDPA) and state statute. The Colorado Public Deposit Protection Act (PDPA), requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations. At December 31, 2012 and December 31, 2011, State Regulatory Commissioners have indicated that all financial institutions holding deposits for Hyland Hills Park and Recreation District are eligible public depositories. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. The institution is allowed to create a single collateral pool for all public funds held. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits BOOK BANK BALANCE BALANCE Insured $ 1,500,000 $ 1,500,000 Collateralized Deposits 10,282,815 10,358,439 Total Deposits 11,782,815 $ 11,858,439 Cash on Hand 31,531 Total Cash and Deposits $ 11,814, BOOK BANK BALANCE BALANCE Insured $ 1,750,000 $ 1,750,000 Collateralized Deposits 10,001,381 10,924,385 Total Deposits 11,751,381 $ 12,674,385 Cash on Hand 23,811 Total Cash and Deposits $ 11,775,192 Page 16

30 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 3: CASH DEPOSITS AND INVESTMENTS (CONTINUED) INVESTMENTS The Board of Directors of the District requires that all investments of the District be made in accordance with its investment policy. Colorado Statutes specify in which instruments the units of local governments may invest which include: - Obligations of the United States and certain U.S. government agency's securities - Certain international agency securities - General obligation and revenue bonds of U.S. local government 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 - Investments in local government investment pools or in money market funds are not categorized because they are not evidenced by securities that exist in physical or book entry form. The District's investments are categorized below to give an indication of the level of credit risk assumed. The District limits CD maturities to three years or less to reduce credit risk. Fair value is determined using quoted market prices Maturities Maturities Carrying Up to More Than S&P Amount 1 Year 1 Year Certificates of Deposit No Rating $ 3,676,879 $ 3,353,482 $ 323,397 ColoTrust AAAm 2,295,810 2,295,810 $ 5,972,689 $ 5,649,292 $ 323,397 Maturities Maturities Carrying Up to More Than S&P Amount 1 Year 1 Year Money Market Account No Rating $ 2,879,472 $ 2,879,472 $ Certificates of Deposit No Rating 5,376,966 2,050,472 3,326,494 ColoTrust AAAm 6,225,443 6,225, $ 14,481,881 $ 11,155,387 $ 3,326,494 Page 17

31 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 3: CASH DEPOSITS AND INVESTMENTS (CONTINUED) INVESTMENTS (CONTINUED) The District has investments in 2012 and 2011 of $2,295,810 and $6,225,443, respectively, in Colorado Government Liquid Asset Trust (the Trust); an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the Trust. This trust operates similarly to a money market fund, and each share is equal in value to one dollar. The Trust offers shares in two portfolios, COLOTRUST PRIME and COLOTRUST PLUS+. COLOTRUST PRIME is rated AAAm by Standard and Poor's. COLOTRUST PLUS+ is rated AAAm by Standard and Poor's and Fitch and Moody's. Both portfolios may invest in U.S. Treasury securities. COLOTRUST PLUS+ may also invest in certain obligations of U.S. government agencies, highest rated commercial paper and repurchase agreements collateralized by certain obligations of U.S. government agencies. Financial statements are available at A designated custodial bank serves as custodian for the Trust's portfolios pursuant to a custodian agreement. The custodian acts as safekeeping agent for the Trust's investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by the Trust. NOTE 4: SUMMARY OF CHANGES IN CAPITAL ASSETS The changes in capital assets for 2012 are as follows: Balance Completed Balance 1/1/2012 Additions Retirements Construction 12/31/2012 Capital Assets, Not Being Depreciated: Land/Water Shares $ 4,902,004 $ $ $ $ 4,902,004 Construction in Progress 4,551,738 27,847 (4,551,738) 27,847 Capital Assets, Being Depreciated: Buildings 14,141, ,080 4,178,276 18,494,854 Improvements Other than Buildings 60,314,311 1,502,158 (82,773) 373,462 62,107,158 Equipment and Furnishings 14,557,969 5,070,105 (114,277) 19,513,797 Total Capital Assets 98,467,520 6,775,190 (197,050) 105,045,660 Accumulated Depreciation: Buildings (7,830,702) (427,309) (8,258,011) Improvements Other than Buildings (33,410,902) (1,989,519) 3,123 (35,397,298) Equipment and Furnishings (9,346,222) (914,708) 101,346 (10,159,584) Total Accumulated Depreciation (50,587,826) (3,331,536) 104,469 (53,814,893) Net Capital Assets $ 47,879,694 $ 3,443,654 $ (92,581) $ $ 51,230,767 Depreciation expense for the year ended December 31, 2012 was $3,331,536. Page 18

32 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 4: SUMMARY OF CHANGES IN CAPITAL ASSETS (CONTINUED) The changes in capital assets for 2011 are as follows: Balance Completed Balance 1/1/2011 Additions Retirements Construction 12/31/2011 Capital Assets, Not Being Depreciated: Land/Water Shares $ 4,902,004 $ $ $ $ 4,902,004 Construction in Progress 533,651 4,400,942 (382,855) 4,551,738 Capital Assets, Being Depreciated: Buildings 15,282, ,817 (1,507,331) 14,141,498 Improvements Other than Buildings 60,019, ,562 (287,474) 166,542 60,314,311 Equipment and Furnishings 13,962,824 1,167,231 (788,399) 216,313 14,557,969 Total Capital Assets 94,700,172 6,350,552 (2,583,204) 98,467,520 Accumulated Depreciation: Buildings (8,725,250) (406,592) 1,301,140 (7,830,702) Improvements Other than Buildings (31,637,269) (2,061,107) 287,474 (33,410,902) Equipment and Furnishings (9,342,786) (791,835) 788,399 (9,346,222) Total Accumulated Depreciation (49,705,305) (3,259,534) 2,377,013 (50,587,826) Net Capital Assets $ 44,994,867 $ 3,091,018 $ (206,191) $ $ 47,879,694 Depreciation expense for the year ended December 31, 2011 was $3,259,534. NOTE 5: RESTRICTED CASH AND INVESTMENTS Restricted cash and investments represents debt proceeds and funds set aside for payment of debt and specific purposes as outlined below: Revenue Bond Reserve $ 1,652,004 $ 1,652, Bond Construction Fund 49,416 98, Revenue Bond Reserve 311, Revenue Bond Reserve 620, , Bond Construction Fund 1,698, Lease Escrow Fund 2,466,454 Total Restricted Cash and Investments $ 2,322,383 $ 6,847,512 Page 19

33 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 6: JOINT VENTURE The District is a partner in an intergovernmental agreement with the City of of Westminster to to The jointly District operate is is a a participant three partner sheet in with an Ice intergovernmental the Skating City of Facility,The Westminster agreement Ice in Centre jointly with operating the the City Promenade. a of three Westminster sheet The Ice facility to Skating jointly serves operating more Facility, than The a 300, ,000 three Ice Centre sheet people at Ice the each Skating Promenade. year Facility,The for ice skating facility Ice Centre programs serves at more the including Promenade. than 300,000 figure skating The people facility and hockey. each serves year more for than ice skating 300,000 programs people each including year figure for ice skating and programs hockey. including The District figure is responsible skating and for hockey. the daily operation of the facility. Net income for the facilitiy is shared equally by The both City partners. of Westminster, Complete through financial its statements building authority, are maintained financed at and the District's constructed offices. the the project in in The City The of Westminster District operates through the its facility building pursuant authority to to a financed sub-lease and which constructed calls for for the the project District in to to make lease The District payments operates to the the City facility equivalent pursuant to one-half to a sub-lease of of the rental which obligation calls for due the to District to the the City's to make building lease authority. payments The agreement to the City entitles equivalent the District to one-half to to an an of undivided the rental fifty fifty obligation percent interest due to the in in the the City's Ice Centre, Ice building Centre, which authority. which in the in the event The event agreement of default, of default, would entitles would be the be reduced District by to by two an two percent undivided for for fifty each each percent year year the the interest lease lease obligation in the Ice was Centre, was not not which met. met. in The the The District event of and default, the City would each be reduced receive by one-half two percent of of the for net net each revenues year received the lease from obligation the operation was not of met. the Ice The Centre. District and the City each receive one-half of the net revenues received from the operation of the Ice Centre. The City of Westminster refunded all of the outstanding balance of of the Ice Ice Centre COP's in in Complete 2010, resulting financial an statements economic are gain maintained (the difference at the District's between offices. the present values of of the the debt service payments on the refunded and refunding bonds) of of $829,106, and a a reduction in in debt service payments of $1,070,234. Complete joint venture financial statements are maintained at at the the District's Administrative offices, located at W. N. Pecos 89th Ave., St., Federal Heights, CO BALANCE SHEET CURRENT ASSETS Inventories $ 240,311 $ 255,586 Total Current Assets 240, ,586 CAPITAL ASSETS Capital Assets - Net of Accumulated Depreciation 9,901,722 10,239,048 Total Capital Assets 9,901,722 10,239,048 OTHER ASSETS Capital Replacement Reserve Fund 214, ,449 Reserve Fund - Certificates of Participation 995, ,000 Prepaid Issue and Discount Costs 84,984 94,427 LIABILITIES Total Assets 11,436,266 11,798,510 Due to District 97, ,205 Due to City 156,334 99,692 Premium on Certificates of Participation 72,037 79,240 Certificates of Participation Payable 8,538,347 9,179,181 Total Liabilities 8,864,080 9,512,318 FUND NET POSITION Retained Earnings 4,255,462 3,867,380 Disbursement of equity to partners (1,683,276) (1,581,188) Total Fund Net Position 2,572,186 2,286,192 Total Liabilities and Fund Net Position $ 11,436,266 $ 11,798,510 Page 20

34 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 6: JOINT VENTURE (CONTINUED) STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION REVENUES Operating Revenues $ 2,924,672 $ 3,014,025 Sponsorships 114,250 99,805 Total Operating Revenues 3,038,922 3,113,830 EXPENSES Operating Expenses 1,976,159 1,984,279 Interest Expense - Certificates of Participation 310, ,844 Depreciation and Amortization Expense 364, ,886 Total Operating Expenses 2,650,840 2,719,009 NET INCOME $ 388,082 $ 394,821 The remaining portion of this page intentionally left blank Page 21

35 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 7: CAPITALIZED LEASES PAYABLE The District is a lessee in several lease/purchase agreements. A summary of future minimum lease payments follows: Golf Maintenance Bldg. $ $ $ $ 2005 Water World Ride 270, , Raceway Addition 225, , Bus Lease 20, Thunder Bay Lease 166, , , , Golf Cart Lease 47,046 47,046 47, Ent. Lease Equipment 114, , Gen. Lease Equipment 55,797 55, Golf Clubhouse Lease 392, , , , Gen. Lease Equipment 33,471 33,471 33,471 33, Ent. Lease Equipment 126, , , ,368 Totals $ 1,453,824 $ 1,452,712 $ 752,462 $ 698,362 The rate of interest for each capital lease obligation follows: 2003 Golf Maintenance Bldg. [1] 2005 Water World Ride [1] 2005 Raceway Addition [1] 2007 Bus Lease 5.14% 2009 Thunder Bay Lease [2] 2010 Golf Cart Lease 3.25% 2010 Ent. Lease Equipment 3.63% 2010 Gen. Lease Equipment 3.63% 2011 Golf Clubhouse Lease [3] 2012 Gen. Lease Equipment 2.33% 2012 Ent. Lease Equipment 2.33% [1] The interest rates on these leases are tied directly to the prime rate and are adjusted annually but each has a set minimum and maximum rate based on prime rate at the time of lease inception. [2] The interest rate on this lease is tied directly to the 10 year treasury note and adjusted every 2 years, but has a set minimum and maximum rate based on prime rate at the time of lease inception. [3] The interest rate on this lease is broken down between two separate fixed rates: a taxable ground lease rate of 5.2%, and a tax exempt ground lease rate of 3.5%. Page 22

36 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND /31/ /31/2011 Net Present Net Present Less Value of Value of Imputed Capitalized Capitalized Total Interest Leases Leases $ $ $ $ $ $ 107, ,440 (46,440) 507, , ,193 (39,128) 426, ,065 20,721 (1,013) 19,708 38, , ,290 1,020,456 (197,507) 822, , ,138 (8,700) 132, , ,503 (11,918) 217, , ,593 (5,795) 105, , ,743 1,570,976 3,534,695 (686,639) 2,848,056 3,100, ,884 (7,450) 126, ,472 (28,125) 477,347 $ 531,469 $ 1,827,266 $ 6,716,095 $ (1,032,715) $ 5,683,380 $ 6,165,456 Page 23

37 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 7: CAPITALIZED LEASES PAYABLE (CONTINUED) The amount of capital assets recorded under current capital lease obligations and related accumulated depreciation is as follows: Golf Maintenance Bldg. $ 1,194,246 $ 1,194, Water World Ride 1,722,796 1,722, Raceway Addition 1,660,119 1,660, Bus Lease 125, , Thunder Bay Lease 1,184,058 1,184, Golf Cart Lease 425, , Ent. Lease Equipment 522, , Gen. Lease Equipment 246, , Golf Clubhouse Lease 4,334, Gen. Lease Equipment 154, Ent. Lease Equipment 573,537 Total Capital Assets Under Capital Lease Obligations 12,142,928 7,080,655 Accumulated Depreciation (2,297,297) (1,725,146) Net Capital Assets Under Capital Lease Obligations $ 9,845,631 $ 5,355,509 SUMMARY OF CHANGES IN CAPITAL LEASE OBLIGATIONS: Capital Leases 2012 AMOUNTS BALANCE BALANCE DUE WITHIN 1/1/2012 ADDITIONS RETIREMENTS 12/31/2012 ONE YEAR $ 6,165,456 $ 746,233 $ 1,228,309 $ 5,683,380 $ 1,187,901 Capital Leases 2011 AMOUNTS BALANCE BALANCE DUE WITHIN 1/1/2011 ADDITIONS RETIREMENTS 12/31/2011 ONE YEAR $ 4,241,375 $ 3,100,000 $ 1,175,919 $ 6,165,456 $ 1,085,857 Page 24

38 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 8: BONDS PAYABLE 2002 GENERAL OBLIGATION BONDS In August 2002, the District issued $18,000,000 General Obligation Bonds. The bonds are General Obligations of the District and are payable from Ad Valorem property taxes. The bonds earn interest between 2.5% and 5.5% per annum. Interest is paid semi-annually. Bonds mature annually on December 15 th. Principal payments range from $400,000 to $1,375,000, with a maturity date of December The bonds were issued to make improvements to various parks and facilities throughout the District, and to purchase open space parcels within the District boundaries. In April 2010, $11,780,000 of the 2002 General Obligation Bonds were refunded with the 2010 General Obligation Bonds. Final payment on the bonds was made in SPECIAL REVENUE REFUNDING AND IMPROVEMENT BONDS On March 8, 2007, the District issued $17,090,000 Special Revenue Refunding and Improvement Bonds, series The bonds are payable solely from and secured by the net revenues derived by the District through the operation of certain revenue-producing facilities. The bonds earn interest between 4.00% and 5.00% per annum. Interest is payable semi-annually. Principal payments are made annually, and range from $380,000 to $1,670,000, with a maturity date of December $7,715,081 of the proceeds from the issue was used to defease $7,515,000 of the series 1996 Special Revenue Refunding and Improvement Bonds with an interest rate of 6.75%. The proceeds net of accrued interest, underwriting fees, insurance, and other issuance costs were used to purchase securities. Those securities were deposited into an irrevocable trust with an escrow agent to provide for all future debt service payments on the series 1996 bonds. The Bonds were called in April of 2007, and there is no longer any outstanding debt. The refunding provided an economic gain (the difference between the present values of the debt service payments on the refunded and refunding bonds) of $422,204 and an increase in debt service payments of $1,652, SPECIAL REVENUE REFUNDING BONDS In December 2009, the District issued $3,115,000 in Special Revenue Refunding Bonds, to defease the balance of the 1997 Revenue Bonds. The bonds are payable solely from and secured by the net revenues derived by the District through the operation of certain revenue-producing facilities. The proceeds from the 2009 issue were used to defease the balance of the 1997A Special Revenue Improvement Bonds. These defeased issues are no longer considered to be debt of the District. The bonds earn interest of 3.33% per annum. Interest is payable semi-annually. Principal payments are made annually, and range from $780,000 to $1,350,000, with a maturity date of December The refunding provided an economic gain (the difference between the present values of the debt service payments on the refunded and refunding bonds) of $132,956, and a reduction in debt service payments of $172,348. Final payment on the bonds was made in SPECIAL REVENUE BONDS In December 2010, the District issued $6,895,000 Special Revenue Bonds. The bonds are payable solely from and secured by the net revenues derived by the District through the operation of certain revenueproducing facilities. The bonds earn interest between 2.000% and 5.625% per annum. Interest is payable semi-annually. Principal payments range from $100,000 to $585,000, with a maturity date of December The bonds were issued to make improvements to various facilities throughout the District. Page 25

39 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 8: BONDS PAYABLE (CONTINUED) 2010 GENERAL OBLIGATION REFUNDING BONDS In April 2010, the District issued $11,780,000 General Obligation Refunding Bonds. The bonds are General Obligation of the District and are payable from Ad Valorem property taxes. The bonds earn interest between 2.00% and 4.50% per annum. Interest is payable semi-annually. Bonds mature annually on December 15th. Principal payments range from $80,000 to $1,350,000, with a maturity date of December Bonds maturing on or after December 15, 2021 are subject to prior redemption at the option of the District. The proceeds from the 2010 issue were placed in an irrevocable trust to be used to advance refund a portion of the 2002 General Obligation Bonds and pay for cost of issuance. At December 31, 2010, the outstanding principal balance of the defeased debt was $10,995,000. The refunding provided an economic gain (the difference between the present values of the debt service payments on the refunded and refunding bonds) of $405,214 and a reduction in debt service payments of $492,638. PLEDGED REVENUES The District has issued General Obligation Bonds and Revenue Bonds which are outstanding through year end. These bonds were issued to finance various projects within the District; the pledged revenue is supplied by the District. The total pledged revenue is not estimable in comparison to pledged debt in that revenues are uncertain to future amounts. However, the debt coverage requirement for each issue must be met or the bonds will be in default. This provides sufficient coverage each year for the pledged debt. The debt service coverage, or comparison of pledged revenues net of specific operating expenses, for each pledged debt is outlined in the Pledged Revenue Table in the Statistical Section. Amount Pledged Term of Commitment 2007 Special Revenue Refunding and Improvement Bonds $ 19,828, Special Revenue Bonds 10,622, Total Pledged Revenues $ 30,451, Pledged Revenue $ 22,319,895 $ 20,639,326 Principal & Interest Paid (2,965,229) (2,662,531) Coverage $ 19,354,666 $ 17,976,795 Page 26

40 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 8: BONDS PAYABLE (CONTINUED) A summary of changes in bonds payable follows: 2012 Amounts Balance Balance Due Within Issue 12/31/2011 Additions Retirements 12/31/2012 One Year 2002 G.O. Bonds $ 845,000 $ $ 845,000 $ $ 2007 Special Revenue Refunding and Improvement Bonds 15,485, ,000 15,045,000 1,525, Special Revenue Refunding Bonds 1,350,000 1,350, Special Revenue Bonds 6,770, ,000 6,670, , G.O. Refunding Bonds 11,435,000 85,000 11,350, ,000 Premium On Bonds 696,973 92, ,074 60,978 Unamortized Charges-Bonds (1,014,240) (149,312) (864,928) (127,841) Total $ 35,567,733 $ $ 2,763,587 $ 32,804,146 $ 2,543, Amounts Balance Balance Due Within Issue 12/31/2010 Additions Retirements 12/31/2011 One Year 2002 G.O. Bonds $ 1,660,000 $ $ 815,000 $ 845,000 $ 845, Special Revenue Refunding and Improvement Bonds 15,910, ,000 15,485, , Special Revenue Refunding Bonds 2,335, ,000 1,350,000 1,350, Special Revenue Bonds 6,895, ,000 6,770, , G.O. Refunding Bonds 11,515,000 80,000 11,435,000 85,000 Premium On Bonds 789,872 92, ,973 92,899 Unamortized Charges-Bonds (1,224,352) (210,112) (1,014,240) (149,312) Total $ 37,880,520 $ $ 2,312,787 $ 35,567,733 $ 2,763,587 Page 27

41 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 8: BONDS PAYABLE (CONTINUED) A summary of debt service on bonded indebtedness to maturity follows: YEAR 2007 SPECIAL REVENUE REFUNDING AND 2010 SPECIAL 2010 GENERAL IMPROVEMENT REVENUE OBLIGATION REFUNDING BONDS BONDS BONDS TOTAL BONDS PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST 2013 $ 1,525,000 $ 682,063 $ 125,000 $ 328,112 $ 960,000 $ 440,725 $ 2,610,000 $ 1,450, ,585, , , , , ,725 2,700,000 1,360, ,670, , , ,925 1,025, ,125 2,820,000 1,237, , , , ,862 1,060, ,375 2,105,000 1,119, , , , ,362 1,090, ,575 2,175,000 1,045, , , , ,962 1,140, ,525 2,275, , , , , ,963 1,195, ,225 2,380, , , , , ,663 1,245, ,213 2,480, , , , , ,688 1,295, ,413 2,590, , , , , ,188 1,350,000 57,375 2,705, , ,010, , , ,938 1,415, , ,055, , , ,688 1,480, , ,100,000 98, , ,438 1,550, , ,150,000 50, , ,938 1,620, , , , , , ,000 93, ,000 93, ,000 64, ,000 64, ,000 32, ,000 32,906 TOTAL $ 15,045,000 $ 4,783,744 $ 6,670,000 $ 3,952,589 $ 11,350,000 $ 2,707,276 $ 33,065,000 $ 11,443,609 Page 28

42 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 9: RECONCILIATION OF REVENUES AND EXPENSES GAAP BASIS TO BUDGETARY BASIS For financial statement presentation purposes, the District is shown as an enterprise fund. This essentially requires the accounting treatment to be the same as a business whereby revenue is recognized as income when a sale occurs and is earned. Expenses are recognized when incurred. Depreciation is recorded on capitalized equipment and other costs. For budgetary purposes, all receipts are shown as revenue, regardless of whether they are earned revenue or liabilities. Budgetary expenditures are recorded for disbursements, including capital expenditures and debt service payments, regardless of the period those disbursements benefit. Below is a reconciliation of the two methods: Total Revenues on Budgetary Basis $ 31,551,309 $ 32,449,574 Add - Joint Venture Income 194, ,412 Less - Lease Proceeds (746,233) (3,100,000) Ice Centre at the Promenade Revenues (3,038,922) (3,113,830) Total Revenues on Generally Accepted Accounting Principles Basis 27,960,195 26,433,156 Total Expenditures on Budgetary Basis 35,245,191 33,824,268 Add - Depreciation on Capital Assets and Amortization of Bond Issue and Discount Costs 3,442,764 3,378,205 Less - Capital Outlay Expenditures (6,775,190) (6,501,348) Lease Issuance Costs (11,175) (37,749) Ice Centre at the Promenade Expenditures (2,650,840) (2,719,009) Debt Service Bond Principal Payments (2,820,000) (2,430,000) Lease Principal Payments (1,228,309) (1,175,919) Total Expenses on Generally Accepted Accounting Principles Basis $ 25,202,441 $ 24,338,448 Page 29

43 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 10: DEFINED CONTRIBUTION PLAN Hyland Hills Park and Recreation District has a defined contribution plan established under IRS Code Section 401(k). Assets of the defined contribution plan are not recorded in the District s financial statements as the assets are not available to the District s general creditors. Principal Financial Group is the insurer of the plan. Hyland Hills adopted, under board resolution, the defined contribution plan on January 1, Salaried employees are eligible to participate in the plan after they have completed one year of service. Hourly paid employees are eligible to participate in the plan on the first day of the calendar month following one year of service during which they worked 1,000 hours. The District matches the employee s contributions to the plan up to 6% of the employee s compensation for the pay period. Employee contributions are only limited by the IRS annual limitations. Employer s contributions become fully vested after three years of employment with the District. The District s Board of Directors authorizes District match and District management has the authority to amend or establish plan requirements. The District, in conjunction with an asset custodian, administers the plan. The District and employees contributed $263,567 and $437,152 respectively to the plan in 2012 and $260,499 and $424,402 respectively to the plan in The contribution rate for employees is 8.47% of the covered payroll for 2012 and 8.55% of the covered payroll for Total payroll for 2012 was $9,842,357 and payroll covered under the defined contribution plan was $5,163,829. Total payroll for 2011 was $9,494,354 and payroll covered under the defined contribution plan is $4,964,342. NOTE 11: CONTINGENT LIABILITIES There are a few pending lawsuits in which the District is involved. No liabilities have been recorded as of December 31, 2012 or 2011, as the outcomes of these lawsuits are not known, and losses, if any, could not reasonably be estimated. NOTE 12: OPERATING LEASES The District is the lessor in several operating leases with independent companies as detailed below. The leases are cancelable at either parties discretion and obligate the District for the terms detailed below. Leased District Expiration Monthly Carrying Accumulated Property Facility Date Rent Amount Depreciation Restaurant Space and Equipment Golf Course Month to Month $ 2,000 $ 2,910,606 $ 29,405 Restaurant Space Ice Centre 7/31/2017 7, , ,889 Office Space [1] Ice Centre 12/31/2012 1, ,483 38,722 Retail Space Ice Centre Month to Month 2, ,128 50,339 Wireless Communications Site Ice Centre 10/31/2018 1,612 40,645 11,617 Wireless Communications Site Waddell Park 6/20/2013 2,626 1,439 [1] The lease for this office space was renewed in January, NOTE 13: RISK MANAGEMENT The District is a member of the Colorado Special District Association (SDA) Property and Liability Pool, a separate and independent governmental and legal entity, which was established pursuant to an intergovernmental agreement authorized by state statutes. The purposes of the Pool are to provide property and liability and workers compensation insurance coverage and risk management services to its municipal members at a reasonable cost. Page 30

44 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 13: RISK MANAGEMENT (CONTINUED) Members can participate actively in policy-making through the Board of Directors, which are nominated and elected by members; involvement on a number of board committees; and participation at annual general membership meetings. Operations are funded by individual membership contributions. It is the intent of the members of the SDA Pool to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the by-laws, any member of the Pool against stated liability or loss, to the limit of the financial resources of the Pool. It is also the intent of the members to have the SDA Pool provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of the SDA Pool shall be at all times dedicated to the exclusive benefit of its members. The by-laws shall constitute the substance of the intergovernmental contract among the members. The amount of settlements has not exceeded insurance coverage for any of the three previous years. NOTE 14: INTERGOVERNMENTAL AGREEMENTS The District entered into an Intergovernmental Agreement with the City of Westminster whereby Hyland Hills caused the existing structure of a community building acquired in 1992 to be divided into a two unit condominium with the existing parking lot being designated as common area. The City of Westminster purchased from Hyland Hills an undivided one-half interest in Condominium Unit One. Condominium Unit One consists of approximately two-thirds of the existing structure, where the City and the District jointly operate a Senior/Community Center. During 1997, the District entered into an Intergovernmental Agreement with the City of Westminster whereby the City built a new Ice Arena, called The Ice Centre at the Promenade within the City of Westminster. The District leases and operates the facility. The 142,000 square foot facility is comprised of three full-size sheets of ice, with amenities including locker rooms, concession facilities, a full-line pro shop, restaurant space and retail space. The facility opened to the public during 1999, at which time the District moved all skating operations from its former ice rink to the Ice Centre at the Promenade. Cash distributions for the Ice Centre are made quarterly to each partner based on cash receipts and disbursements. Certificates of Participation issued to construct the facility are in the City s name and are wholly owned by the City. Hyland Hills has agreed to pay annual rent to the City in an amount equal to onehalf of the annual debt service for the Certificates of Participation. NOTE 15: SIGNIFICANT ECONOMIC DEPENDENCIES The District is a party in a sponsorship and exclusivity agreement with Pepsi-Cola Metropolitan Bottling Company, Inc. (Pepsi) which was executed in 1999 and expires in The agreement provides the District with an annual sponsorship fee of $240,000, of which $100,000 is distributed to the Ice Centre at the Promenade. The District provides to Pepsi the exclusive sales and dispensing of only Pepsi s products at all District facilities and the Ice Centre at the Promenade. The District also agrees to designate Pepsi as the Official Sponsor of Hyland Hills and provides various advertising signage at its facilities at no additional charge to Pepsi. Page 31

45 HYLAND HILLS PARK AND RECREATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2012 AND 2011 NOTE 16: TAX SPENDING AND DEBT LIMITATIONS Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local governments. The Amendment is complex and subject to judicial interpretation. The District believes it is in compliance with the requirements of the amendment. However, the District has made certain interpretations of the amendment s language in order to determine its compliance. Page 32

46 Intentionally Left Blank. Page 33

47 HYLAND HILLS PARK AND RECREATION DISTRICT SCHEDULE OF REVENUES AND EXPENDITURES ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEARS ENDED DECEMBER 31, 2012 AND ORIGINAL/ VARIANCE FINAL FAVORABLE REVENUES ACTUAL BUDGET (UNFAVORABLE) Taxes $ 4,723,401 $ 4,749,964 $ (26,563) Conservation Trust Fund 535, ,000 35,594 Adventure Golf 1,416,414 1,354,300 62,114 Golf Course 2,042,613 2,029,100 13,513 Golf Course Concessions 169, ,600 40,386 Carroll Butts Athletic Park (Former Ice Arena) 371, ,200 (10,990) Ice Centre at the Promenade 3,038,922 3,065,751 (26,829) Racquetball Courts Recreation 1,240,565 1,138, ,895 Swimming Pools and Aquatics 54,020 47,000 7,020 Water World 17,036,872 15,216,800 1,820,072 Interest 65, ,500 (52,102) Lease Proceeds 746, ,000 (33,767) Other 110,081 79,000 31,081 Total Revenues (Note 9) 31,551,309 29,589,885 1,961,424 EXPENDITURES General and Administrative 3,501,842 3,536,402 34,560 Adventure Golf 980, ,478 (98,706) Golf Course and Pro Shop 2,068,417 1,883,348 (185,069) Golf Course Concessions 153,625 91,936 (61,689) Carroll Butts Athletic Park (Former Ice Arena) 250, , ,880 Ice Centre at the Promenade 2,650,840 3,065, ,911 Parks 1,753,913 1,670,079 (83,834) Racquetball Courts Recreation 1,789,034 1,690,554 (98,480) Swimming Pools and Aquatics 179, ,400 16,467 Water World 9,152,907 8,890,367 (262,540) Reserves and Contingency 14,142,418 14,142,418 Capital Outlay 6,775,190 2,794,482 (3,980,708) Conservation Trust Fund 67, , ,197 Debt Service Bond Interest 1,603,122 1,551,456 (51,666) Bond Principal Payments 2,820,000 2,820,000 Lease Interest 258, ,409 67,853 Lease Principal Payments 1,228,309 1,228,309 Lease Issue Costs 11,175 10,000 (1,175) Total Expenditures (Note 9) $ 35,245,191 $ 45,546,610 $ 10,301,419 See Independent Auditors' Report Page 34

48 2011 ORIGINAL/ VARIANCE FINAL FAVORABLE ACTUAL BUDGET (UNFAVORABLE) $ 4,786,405 $ 4,836,965 $ (50,560) 516, ,000 16,776 1,335,029 1,198, ,929 1,839,233 1,956,120 (116,887) 115, ,300 (15,438) 363, ,500 (7,091) 3,113,830 3,127,748 (13,918) 10,479 25,000 (14,521) 1,254,322 1,208,175 46,147 52,476 46,250 6,226 15,694,655 14,149,900 1,544, , ,600 (19,229) 3,100, ,500 2,324, , ,301 42,426 32,449,574 28,569,459 3,880,115 3,261,170 3,285,996 24, , ,530 (158,688) 1,942,005 1,915,082 (26,923) 98, ,454 15, , , ,414 2,719,009 3,127, ,739 1,636,805 1,631,615 (5,190) 25,531 51,162 25,631 1,806,856 1,762,924 (43,932) 175, ,565 21,709 8,613,436 8,305,839 (307,597) 10,773,881 10,773,881 6,501, ,233 (6,349,115) 244, , ,061 1,748,954 1,635,937 (113,017) 2,430,000 2,430, , ,602 98,115 1,175,919 1,175,919 37,749 7,500 (30,249) $ 33,824,268 $ 38,415,230 $ 4,590,962 Page 35

49 Statistical Section.

50 STATISTICAL SECTION Financial Trends Information These tables contain trend information to help the reader understand how the District's financial performance and stability are changed over time. Table Fund Net Position by Component 1 Changes in Fund Net Position 2 Operating Revenues by Source 3 Operating Expenses by Source 4 Non-operating Revenues/(Expenses) 5 Revenue Capacity Information These tables contain information to help the reader understand the District's tax revenue stream, although not a major part of the District's total revenue. Property Tax Levies and Collections 6 Assessed and Estimated Actual Value of Taxable Property 7 Debt Capacity Information These tables contain the financial information related to the District's debt, its ability to meet covenants of existing debt and the ability to issue additional debt in the future. Ratios of Outstanding Debt by Type 8 Ratios of Outstanding General Obligation Debt 9 Computation of Direct and Overlapping Bonded Debt 10 Computation of Pledged Revenue Coverage 11 Demographic and Economic Information These tables offer demographic and economic information to help the reader understand the environment in which the District operates. Demographic Information 12 Principal Employers (Adams County) 13 Full Time Employees by Department 14 Operating Information These tables contain information which enables the reader to understand the scope of what the District has to offer as well as the historical information for its major revenue producers. Attendance for Recreational Facilities 15 Miscellaneous District Statistics 16

51 Hyland Hills Park and Recreation District Fund Net Position by Component Last Ten Fiscal Years (Unaudited) Table Enterprise Fund Net investment in capital assets $ 12,792,657 $ 10,409,550 $ 9,349,834 $ 8,070,043 $ 8,922,611 Restricted 2,322,383 6,847,512 9,061,329 5,644,525 2,596,843 Unrestricted 14,344,191 9,444,415 6,195,606 7,714,889 8,912,422 Total Fund Net Position $ 29,459,231 $ 26,701,477 $ 24,606,769 $ 21,429,457 $ 20,431, Enterprise Fund Net investment in capital assets $ 8,005,619 $ 8,676,427 $ 6,516,830 $ 4,719,371 $ 2,705,871 Restricted 5,501,455 3,179,482 4,530,750 5,472,490 11,019,129 Unrestricted 4,516,988 2,350,796 1,375,868 (337,501) (4,242,544) Total Fund Net Position $ 18,024,062 $ 14,206,705 $ 12,423,448 $ 9,854,360 $ 9,482,456 Page 36

52 Hyland Hills Park and Recreation District Changes in Fund Net Position Last Five Fiscal Years (Unaudited) Table 2 OPERATING REVENUES Fees and Charges Pledged as Security for Revenue Bonds $ 22,319,895 $ 20,639,326 $ 20,167,045 $ 18,062,205 $ 19,122,343 Fees and Charges 35,690 47,426 37,890 36,389 38,786 Conservation Trust Fund 535, , , , ,649 Other 64,976 61,066 73,703 67,052 88,716 Total Operating Revenues 22,956,155 21,264,594 20,790,435 18,704,754 19,824,494 OPERATING EXPENSES General and Administrative 3,501,842 3,261,170 2,981,985 2,975,048 2,778,379 Parks 1,753,913 1,636,805 1,591,808 1,526,522 1,655,318 Golf Course and Pro Shop 2,068,417 1,942,005 1,918,867 2,040,080 2,208,900 Recreation 1,789,034 1,806,856 1,834,208 1,640,587 1,661,042 Swimming Pools and Aquatics 179, , , , ,461 Carroll Butts Athletic Park (Former Ice Arena) 250, , , , ,497 Golf Course Concessions 153,625 98, , , ,039 Water World 9,152,907 8,613,436 8,000,180 7,921,926 7,858,533 Racquetball Courts 25,531 55,079 50,737 63,148 Adventure Golf 980, , , , ,646 Conservation Trust Fund 67, ,682 81,958 67,828 65,725 Total Operating Expenses 19,897,999 19,019,802 17,931,984 17,578,798 17,686,688 INCOME FROM OPERATIONS BEFORE DEPRECIATION AND AMORTIZATION 3,058,156 2,244,792 2,858,451 1,125,956 2,137,806 Depreciation and Amortization (3,442,764) (3,378,205) (3,313,494) (3,394,084) (3,246,802) NET LOSS FROM OPERATIONS (384,608) (1,133,413) (455,043) (2,268,128) (1,108,996) NON-OPERATING REVENUES (EXPENSES) Interest Expense (1,861,678) (1,940,441) (1,541,514) (1,928,148) (2,119,846) Taxes 4,723,401 4,786,405 4,837,548 4,996,212 5,033,871 Interest Income 65, , ,494 87, ,211 Income from Joint Venture 194, , , , ,574 Gain on Sale of Capital Assets 21,200 79,374 4,867 6,000 Grants 3, , ,000 Total Non-Operating Revenues (Expenses) 3,142,362 3,228,121 3,632,355 3,265,709 3,516,810 CHANGE IN FUND NET POSITION 2,757,754 2,094,708 3,177, ,581 2,407,814 FUND NET POSITION, Beginning of Year 26,701,477 24,606,769 21,429,457 20,431,876 18,024,062 FUND NET POSITION, End of Year $ 29,459,231 $ 26,701,477 $ 24,606,769 $ 21,429,457 $ 20,431,876 Page 37

53 Hyland Hills Park and Recreation District Operating Revenues by Source Last Ten Fiscal Years (Unaudited) Table 3 Revenue Source [1] Adventure Golf $ 831,187 $ 840,656 $ 817,801 $ 1,274,419 $ 1,331,749 Golf Course 2,092,642 1,992,599 2,287,402 2,300,906 2,199,002 Golf Course Concessions 137, , , , ,622 Carroll Butts Athletic Park (Former Ice Arena) 60,000 60,000 60,000 45, ,855 Racquetball 31,466 31,754 31,753 26,818 24,465 Recreation 1,137,933 1,237,106 1,246,616 1,096,033 1,144,867 Swimming Pools 16,789 31,225 39,939 34,901 46,689 Water World 9,983,754 7,842,857 9,485,050 10,711,654 13,127,469 Conservation Trust Fund 505, , , , ,442 Other 78,481 54,297 57, ,371 90,946 Total Operating Revenues $ 14,875,634 $ 12,714,967 $ 14,668,751 $ 16,531,112 $ 19,157,106 [1] Revenues are made up entirely of fees and charges for all areas except Conservation Trust Fund and Other Page 38

54 Table $ 1,211,461 $ 1,145,271 $ 1,204,291 $ 1,335,029 $ 1,416,414 2,243,679 1,894,936 1,956,959 1,839,233 2,042, , , , , , , , , , ,210 23,242 25,287 23,490 10,479 1,181,441 1,132,379 1,291,729 1,254,322 1,240,565 50,254 48,069 48,170 52,476 54,020 13,995,123 13,332,521 15,143,817 15,694,655 17,036, , , , , , ,864 88,331 94,860 82,353 88,881 $ 19,824,494 $ 18,704,754 $ 20,790,435 $ 21,264,594 $ 22,956,155 Page 39

55 Hyland Hills Park and Recreation District Operating Expenses by Source Last Ten Fiscal Years (Unaudited) Table 4 Expense Source General and Administrative $ 2,310,211 $ 2,397,534 $ 2,440,270 $ 2,627,592 $ 2,636,589 Adventure Golf 491, , , , ,750 Golf Course and Pro Shop 1,846,504 1,875,363 1,986,430 2,023,165 2,090,130 Golf Course Concessions 155, , , , ,223 Carroll Butts Athletic Park (Former Ice Arena) ,530 53,304 Parks 1,175,794 1,236,066 1,197,465 1,320,273 1,449,131 Racquetball 97,516 87,537 68,108 65,999 59,363 Recreation 1,645,924 1,647,433 1,559,097 1,611,815 1,677,549 Swimming Pools 87, , , , ,520 Water World 6,013,297 5,425,760 5,770,260 6,399,651 6,918,687 Conservation Trust Fund 119,396 87,028 77,427 56,674 56,200 Total Operating Expenses Before Depreciation and Amortization 13,943,967 13,479,005 13,791,131 15,177,834 15,973,446 Depreciation and Amortization 2,540,225 2,729,579 3,056,061 2,967,105 3,014,685 Total Operating Expenses $ 16,484,192 $ 16,208,584 $ 16,847,192 $ 18,144,939 $ 18,988,131 Page 40

56 Table $ 2,778,379 $ 2,975,048 $ 2,981,985 $ 3,261,170 $ 3,501, , , , , ,184 2,208,900 2,040,080 1,918,867 1,942,005 2,068, , , ,075 98, , , , , , ,320 1,655,318 1,526,522 1,591,808 1,636,805 1,753,913 63,148 50,737 55,079 25,531 1,661,042 1,640,587 1,834,208 1,806,856 1,789, , , , , ,933 7,858,534 7,921,926 8,000,180 8,613,436 9,152,907 65,724 67,828 81, ,682 67,824 17,686,688 17,578,798 17,931,984 19,019,802 19,897,999 3,246,802 3,394,084 3,313,494 3,378,205 3,442,764 $ 20,933,490 $ 20,972,882 $ 21,245,478 $ 22,398,007 $ 23,340,763 Page 41

57 Hyland Hills Park and Recreation District Non-operating Revenues and Expenses Last Ten Fiscal Years (Unaudited) Table 5 Total Gain/(Loss) Income Non-operating Fiscal Interest Tax Interest on Sale of From Joint Revenues Year (Expense) Revenues Income Capital Assets Donations Venture (Expenses) 2003 $ (2,583,794) $ 4,948,849 $ 317,244 $ 11,088 $ 600,000 $ 197,255 $ 3,490, (2,207,036) 5,203, ,682 61, , ,821 3,865, (2,202,858) 5,215, , ,268 1,159, ,111 4,747, (2,202,670) 5,042, ,705 24,784 3, ,339 3,397, (2,085,271) 5,042, ,763 4,519 17,371 71,234 3,648, (2,119,846) 5,033, ,211 6, , ,574 3,516, (1,928,148) 4,996,212 87, ,672 3,265, (1,541,514) 4,837, ,494 4, , ,158 3,632, (1,940,441) 4,786, ,371 79,374 3, ,412 3,228, (1,861,678) 4,723,401 65,398 21, ,041 3,142,362 Page 42

58 Hyland Hills Park and Recreation District Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Table 6 Percentage Ratio of [1] of Current Delinquent Total Tax Outstanding Levy Collection Total Current Tax Taxes Tax Total Tax Collections to Delinquent Year Year Tax Levy Collections Collected Collections Collections Total Tax Levy Taxes $ 4,434,428 $ 4,422, % $ 2,301 $ 4,424, % ,693,856 4,669, ,740 4,675, ,716,774 4,705, ,945 4,709, ,592,171 4,561, ,979 4,566, ,585,550 4,563, ,458 4,569, ,633,794 4,622, ,409 4,628, ,660,253 4,639, ,066 4,642, ,531,120 4,515, ,307 4,523, ,500,965 4,470, ,856 4,481, ,452,964 4,389, ,909 4,403, [1] Total outstanding delinquent taxes are unknown by the District and are recorded only upon receipt of payment. Page 43

59 Hyland Hills Park and Recreation District Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) Table 7 Ratio of Total Total Direct Total Assessed Value Levy Collection Assessed Tax Estimated To Total Estimated Year Year Value Rate Actual Value Actual Value $ 745,783, $ 5,918,212, ,925, ,234,342, ,674, ,674,987, ,068, ,831,492, ,970, ,786,817, ,213, ,831,245, ,614, ,358,558, ,978, ,843,623, ,846, ,182,165, ,655, ,732,262, Source: Adams County Assessor's Office Page 44

60 Hyland Hills Park and Recreation District Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Table 8 Total As a General Percent of Fiscal Revenue Obligation Capital Total Per Personal Year Bonds Bonds Leases Amount Capita Income 2003 $ 17,535,000 $ 18,050,000 $ 3,601,097 $ 39,186,097 $ % ,270,000 17,180,000 3,255,880 36,705, % ,940,000 16,290,000 6,367,330 37,597, % ,720,000 15,610,000 5,849,734 34,179, % ,825,000 14,910,000 4,945,968 41,680, % ,940,000 14,190,000 4,023,152 39,153, % ,865,000 13,440,000 4,384,058 40,689, % ,140,000 13,175,000 4,241,375 42,556, % ,605,000 12,280,000 6,165,456 42,050, % ,715,000 11,350,000 5,683,380 38,748, [1] [1] Amounts of personal income unavailable at time of print. Page 45

61 Hyland Hills Park and Recreation District Ratios of Outstanding General Obligation Debt Last Ten Fiscal Years (Unaudited) Table 9 Total Ratio of General 1996 General 2002 General 2010 General Obligation Debt Fiscal Obligation Obligation Obligation Total Per To Total Estimated Year Bonds Bonds Refunding Bonds Amount Capita Actual Property Value 2003 $ 450,000 $ 17,600,000 $ $ 18,050,000 $ % ,000 16,950,000 17,180, % ,290,000 16,290, % ,610,000 15,610, % ,910,000 14,910, % ,190,000 14,190, % ,440,000 13,440, % ,660,000 11,515,000 13,175, % ,000 11,435,000 12,280, % ,350,000 11,350, % Page 46

62 Hyland Hills Park and Recreation District Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 2012 (Unaudited) Table 10 Net General Estimated Estimated Obligation Percentage Amount Bonded Debt Applicable to Applicable to Jurisdiction Outstanding District District Overlapping: Adams County School District 12 $ 306,312, % $ 60,312,972 Adams County School District 50 88,550, % 87,283,735 North Washington Fire District No. 3 4,241, % 564,971 Southwest Adams County Fire District No , % 563,501 Subtotal, overlapping debt $ 148,725,179 District direct debt 11,350,000 Total direct and overlapping debt $ 160,075,179 The following entities overlap the District but have no general obligation debt outstanding: Adams County, City of Arvada, Berkeley Water and Sanitation District, Crestview Water and Sanitation District, City of Federal Heights, City of Thornton, North Lincoln Water and Sanitation District, Regional Transportation District, Urban Drainage and Flood Control District, West Adams County Fire District No. 1, and North Pecos Water and Sanitation District. Note: Overlapping governments are those that coincide, at least in part, within the District boundries. When estimating the governments outstanding debt, it is taken into consideration that not all businesses or residents bear the full debt, only the portion applicable to the District. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account, and that not all taxpayers are residents and therefore responsible for repaying debt of each overlapping government. Sources: Adams County Assessor's Office and the respective entities. The District's direct debt detail can be found on Table 9. Page 47

63 Hyland Hills Park and Recreation District Computation of Pledged-Revenue Coverage Last Ten Fiscal Years (Unaudited) Table 11 Less Plus Plus Total Less Fiscal Operating Non-Pledged Ice Centre Interest Pledged Operating Non-Pledged Year Revenues Revenues [1] Revenues [2] Revenue [3] Revenues Expenses [4] Expenses [5] 2003 $ 14,875,634 $ 515,427 $ 1,774,373 $ 292,244 $ 16,426,824 $ 13,946,967 $ 3,803, ,714, ,800 1,717, ,353 14,126,884 13,479,005 3,925, ,668, ,944 1,738, ,783 16,064,199 13,791,131 3,931, ,531, ,820 1,758, ,554 17,896,438 15,177,834 4,261, ,157, ,499 1,759, ,441 20,806,402 15,973,446 4,399, ,824, ,435 1,705, ,174 21,133,269 17,686,688 4,766, ,704, ,497 1,615,154 77,939 19,822,350 17,578,798 4,824, ,790, ,687 1,607, ,768 21,953,148 17,931,984 4,933, ,264, ,202 1,556,915 75,505 22,332,812 19,019,802 5,404, ,956, ,284 1,519,461 46,331 23,950,663 19,897,999 5,627,693 [1] Non-pledged revenues include revenues from senior programs, the Carl Park facility and the Baker facility as well as revenues from the Conservation Trust Fund (Lottery). [2] Ice Centre revenues reported at District's share of 50% after first year of joint operation in [3] Interest revenue exclusive of interest from bond reserve funds. [4] Total Operating expenses exclusive of depreciation. [5] Non-pledged expenses include general and administrative, parks, senior programs, the Carl Park facility and the Baker facility, as well as expenses from the Conservation Trust Fund (Lottery). [6] Ice Centre expenses are reflected at the District's share of 50%, including the District's lease payment obligation to the City of Westminster. [7] Lease payments expenses exclude the payments on any equipment leases for the General Government Fund. [8] Principal reflects only scheduled revenue bond debt service payments, not amounts refunded in [9] Excludes $646,820 which was paid from existing debt service reserve fund that was liquidated at date of final payment. Page 48

64 Table 11 Plus Plus Total Net Ice Centre Lease Pledged Available Revenue Bond Debt Service Coverage Expenses [6] Payments [7] Expenses Revenues Principal Interest Total Ratio $ 1,577,119 $ 1,221,060 $ 12,942,126 $ 3,484,698 $ 1,210,000 $ 1,130,478 $ 2,340, ,524,543 1,149,034 12,227,001 1,899,883 1,265,000 1,069,008 2,334, ,517,498 1,111,489 12,489,107 3,575,092 1,330,000 1,004,557 2,334, ,558,252 1,458,212 13,932,929 3,963,509 1,573,180 [9] 936,648 2,509, ,688,120 1,314,176 14,576,049 6,230, ,000 [8] 906,628 1,376, ,506,213 1,175,966 15,602,167 5,531, ,000 1,054,985 1,939, ,505, ,305 15,229,679 4,592,671 1,190,000 1,008,710 2,198, ,505,474 1,270,603 15,774,500 6,178,648 2,045,000 1,046,880 3,091, ,359,505 1,287,682 16,262,075 6,070,737 1,535,000 1,127,531 2,662, ,325,420 1,380,281 16,976,007 6,974,656 1,890,000 1,075,229 2,965, Page 49

65 Hyland Hills Park and Recreation District Demographic Information Last Ten Fiscal Years (Unaudited) Table 12 Adams County Colorado [2] Personal Income [2] [3] [4] [3] Fiscal [1] (Thousands Per Capita Labor School Unemployment Year Population of dollars) Income Force Enrollment Rate ,983 $ 11,017,055 $ 29, ,889 67, % ,789 11,462,248 29, ,128 68, % ,968 12,044,765 30, ,468 73, % ,773 12,771,988 31, ,237 74, % ,291 13,553,627 32, ,315 75, % ,842 14,031,026 33, ,649 79, % ,428 13,913,024 31, ,488 81, % ,483 14,130,401 31, ,884 84, % ,017 14,925,051 33, ,309 85, % ,846 [5] [5] 234,673 87, % [1] Division of Local Government - Conservation Trust Fund Administrator figure reflects a decrease due to 2010 being a census year. [2] Bureau of Economic Analysis [3] State Department of Labor [4] State Department of Education [5] Information unavailable at time of print Page 50

66 Hyland Hills Park and Recreation District Principal Employers of Adams County 2012 and 2003 (Unaudited) Table Percent of Percent of Total County Total County Employer Employees Rank Government Employees Rank Government Children's Hospital Colorado 5, % University of Colorado Hospital 4, % United Parcel Service 2, % % Avaya Communications 1, % % Staples % Centura: St. Anthony's Hospital North % Health One: North Suburban Medical Center % Sturgeon Electric % DISH Network % % Shamrock Foods % % T-Mobile % University of Colorado Health Sciences Center % University of Colorado at Fitzsimmons % Wagner Equipment % Navajo/Digby Truck Lines % Denver Auto Auction % 17, % 10, % Source: Adams County Economic Development Does not include governmental entities. Latest statistics available at time of print. Page 51

67 Hyland Hills Park and Recreation District Number of Full Time Employees by Department Last Ten Fiscal Years (Unaudited) Table 14 Water Fiscal World Adventure Golf General and Ice Year And Pools Golf Course Recreation Parks Administrative Centre Total Page 52

68 Hyland Hills Park and Recreation District Attendance for Recreational Facilities Last Ten Fiscal Years (Unaudited) Table 15 [1] Fiscal Water Adventure Golf Ice Year World Golf Course Centre , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,423 [1] Number of nine hole equivalents Page 53

69 Hyland Hills Park and Recreation District Miscellaneous Statistics December 31, 2012 (Unaudited) Table 16 Date of Incorporation October 14, 1955 Type of Government Special District Area in square miles 23.5 Acres of Parks 457 Acres of Golf Course 300 Acres of Water World 64 Full-time employees 88 Part-time/Seasonal employees 1,464 Hyland Hills Facilities: Acres of Open Space 60 Indoor Sports Arena 1 Ball Fields 29 Miniature Golf Courses (18 hole) 3 Batting Cage Complex 1 Outdoor Swimming Pools 3 Community Centers 3 Parks 27 Disc Golf Course 1 Racquetball Courts 1 Go-Kart/Bumper Car Facility 1 Senior Center 1 Golf Courses (9 and 18 hole) 4 Skate Park 1 Golf Practice Facility 1 Tennis Courts 9 Gymnastics Center 1 Water Theme Park 1 Indoor Ice Arena (sheets of ice) 3 Program Participants and Facility Visits: Batting Cages 8,950 8,800 8,900 9,000 9,800 9,600 9,500 10,200 12,500 10,000 Community Center Rentals 28,360 19,200 16,500 15,160 15,180 10,050 7,800 6,000 5,284 Recreation Club 6,481 6,501 6,444 6,649 Gymnastics 8,000 8,181 7,439 7,527 5,629 3,900 4,900 5,950 4,213 4,040 Junior Golf Preschool 1,500 1,273 1,278 1,500 1,572 1,530 1,780 1,765 1,737 1,744 Racquetball 1,582 3,507 3,753 3,492 3,783 4,225 4,547 3,960 3,762 Recreation 5,200 4,850 4,500 4,000 3,749 3,405 4,340 7,000 8,289 2,186 Senior Center 94,482 87,815 81,711 92,176 95,525 83,236 86,321 81,137 81,128 73,176 Special Events 1,800 2,000 3,900 3,800 4,189 1,700 2,500 3,000 3,000 3,300 Sports - Adult 11,673 11,281 11,237 10,855 9,713 4,870 4,268 4,619 6,558 4,965 Sports - Youth 2,025 1,810 1,634 1,417 1,372 1,210 1,270 1,189 1, Sports Camps Summer Camp Teen Programs Youth Care 411 1,341 1,831 2,566 3,214 4,214 Page 54

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