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Home My WebLink AboutPACKET Audit Committee 2023-08-28 Wednesday August 28, 2023 2:30 p.m. – 3:30 p.m. Audit Committee Admin Conference Room 1. CALL TO ORDER 2. NEW BUSINESS a) 2022 ACFR and Audit Review i. Review 2022 Audit Report and Audit Findings with Auditors. ii. Confirm readiness for Sept 12, 2023 Town Board meeting. b) Consider appointment of Haynie and Company to perform the 2023 Audit. 3. ADJOURN Attachments: Attachment A – Auditor Management Letter Attachment B – Auditor Presentation Link to the Annual Comprehensive Financial Report for year ended 12-31-2022 AGENDA Page 1 Page 2 Attachment A Page 3 Page 4 Page 5 Page 6 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> Town of Estes Park Audit Presentation To The Audit Committee of the Board of Trustees For The Year Ending December 31, 2022 August 28, 2023 •Engagement team •Audit procedures •Financial highlights •Required communications •Uncorrected misstatements •Corrected misstatements •Appendices Agenda 1 2 Attachment B Page 7 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> ENGAGEMENT TEAM Ty Holman, CPA, tyh@hayniecpas.com 303-995-4970 Audit Partner Abbey Irvine, CPA, abbeyi@hayniecpas.com 970-443-0936 Audit Manager <Any extra information that doesn’t match agenda but needs to be on section break slide> AUDIT PROCEDURES 3 4 Page 8 8/24/2023 We issued a clean, or unmodified, audit opinion on the 2022 financial statements effective June 28, 2023. We conducted our audit in accordance with United States Generally Accepted Auditing Standards. The objective of our audit was to obtain reasonable, not absolute, assurance about whether the financial statements are free from material misstatement. Engagement status 5 6 Page 9 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> FINANCIAL STATEMENT HIGHLIGHTS Total Assets, $222,848,687 Total Deferred Outflows, $2,040,382 Total Liabilities, $51,546,539 Total Deferred Inflows, $9,808,561 Net Investment in Capital Assets, $107,892,245 Restricted, $9,944,410 Unrestricted, $45,697,314 Net Position, … 2022 Government Wide Statement of Net Position Total Assets Total Deferred Outflows Total Liabilities Total Deferred Inflows Net Investment in Capital Assets Restricted Unrestricted 7 8 Page 10 8/24/2023 Total General Revenues, 25,748,731 Charges for Services, 33,818,635 Operating Grants and Contributions, 483,861 Capital Grants and Contributions, 1,647,947 Program Expenses, 45,812,143 2022 Government Wide Statement of Net Position Highlights Total General Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions Program Expenses Change in Net Position $15,887,031 Total Assets Total Assets Total Liabilities and Deferred Inflows Total Liabilities and Deferred Inflows Fund Balance Fund Balance - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 2022 Governmental Fund Financial Highlights - Balance Sheets Total Assets Total Liabilities and Deferred Inflows Fund Balance 2021 24,902,846 2,864,612 22,038,234 2022 30,339,385 2,579,510 27,759,875 9 10 Page 11 8/24/2023 Business-Type funds Water and Power and Communication – Statements of Net Position Assets Assets Liabilities Liabilities Net Position Net Position - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2021 2022 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 2022 Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances Total Revenue Total Expenditures Transfers - Net Change in Fund Balances 11 12 Page 12 8/24/2023 (5,000,000) - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 2022 Business-Type Activities Financial Highlights - Statements of Revenues, Expenditures, and Changes in Net Position Total Operating Revenues Total Operating Expenditures Transfers Total Non- Operating Expenditures Change in Net Position •Accounting Policies (Note 1) •Capital assets (Note 4) •Long-Term Debt (Note 5) •Budget to actuals (pages 80-81 and 86-94 and 98-102) •No funds over budget in 2022 Notes and Supplemental Info 13 14 Page 13 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> REQUIRED COMMUNICATIONS •GASB 87, Leases, was adopted effective January 1, 2022. No material impact to the financial Statements. A change in accounting principle was also reflected for an Inventory accounting change in the business-type activities, resulting in a prior period adjustment totaling $390,638 (P&C) and $6,650 (water) Selection of, or changes in, accounting policies or their application Accounting estimates •Based on our review of the Company’s critical accounting estimates, no significant changes were noted in the current period. Estimates considered: •Depreciable lives •Pension liability (asset) •Self Insurance claims payable Disagreements with management •We encountered no disagreements with management about matters that, individually or in the aggregate, could be significant to •The District’s interim financial information •Our audit proceduresDifficultiesencountered in performing the audit •No difficulties were encountered 15 16 Page 14 8/24/2023 •We are not aware of any consultations management had with other accountants about significant review or accounting matters. Management consultation with other accountants Management representation •Management provided a signed representation letter prior to issuance of the final report. Other matters •Required supplementary information – no opinion and no assurance •Other supplementary information – in-relation-to opinion Single Audit •Performed in 2022 for one major program - Bus and Bus Facilities Formula Program. •No findings to report. <Any extra information that doesn’t match agenda but needs to be on section break slide> UNCORRECTED MISSTATEMENTS 17 18 Page 15 8/24/2023 •There were no uncorrected misstatements. Uncorrected misstatements <Any extra information that doesn’t match agenda but needs to be on section break slide> CORRECTED MISSTATEMENTS 19 20 Page 16 8/24/2023 •These are also referred to as audit adjustments •Standard audit adjustments provided to adjust Pension and OPEB amounts on the financials statements. •$64,000 adjustment to P&C capital assets – not considered material or an control deficiency. Corrected misstatements Any additional information needed for sub-section break slide Upcoming GASB Pronouncements 21 22 Page 17 8/24/2023 Pronouncement Status Date Issued Effective Date (fiscal years beginning ) Statement No. 94: Public-Private and Public-Public Partnerships and Availability Payment Arrangements Improves accounting and financial reporting for (1) public-private and public-public partnership arrangements (both referred to as "PPPs") that are outside of the scope of the existing guidance for these transactions: Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, and Statement No. 87, Leases, and (2) availability payment arrangements ("APAs"). Final 4/20/2020 6/15/2022 Statement No. 96: Subscription-Based Information Technology Arrangements Provides uniform guidance on the accounting and financial reporting of subscription-based information technology arrangements (SBITAs) for government end users in an effort to provide greater consistency in practice, reduce diversity and improve comparability in financial reporting by governments. The Statement effectively applies many of the provisions of Statement No. 87, Leases, to subscription-based transactions Final 6/5/2020 6/15/2022 Statement No. 100, Accounting Changes and Error Corrections (an amendment of GASB Statement No. 62 ) The primary objective is to provide more straightforward guidance that is easier to understand and is more reliable, relevant, consistent, and comparable across governments for making decisions and assessing accountability. Improving the clarity of accounting and financial reporting requirements for accounting changes and error corrections will mean greater consistency in the application of these requirements in general. Final 6/13/2022 6/15/2023 Statement No. 101: Compensated Absences Aligns recognition and measurement guidance for all types of compensated absences under a unified model. It also requires that a liability for specific types of compensated absences not be recognized until the leave is used. Additionally, it establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. For example, a liability for leave that has not been used would be recognized if the leave: Provides an alternative to the existing requirement to disclose the gross annual increases and decreases in long-term liability for compensated absences, allowing governments to disclose only the net annual change in the liability as long as it is identified as such; and removes the disclosure of the government funds used to liquidate the liability for compensated absences. Final 6/16/2022 12/15/2023 QUESTIONS AND ANSWERS 23 24 Page 18 8/24/2023 THANK YOU! HaynieCPAs.com 25 Page 19 TOWN OF ESTES PARK, COLORADO ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended December 31, 2022 Town of Estes Park, Colorado Annual Comprehensive Financial Report For the year ended December 31, 2022 Prepared by the Finance Department Table of Contents Page Introductory Section List of Principal Officials ......................................................................................................................... 1 Organizational Chart ................................................................................................................................ 2 GFOA Certificate of Achievement ........................................................................................................... 3 Letter of Transmittal .............................................................................................................................. 4-9 Financial Section Independent Auditor's Report ............................................................................................................. 10-12 Management's Discussion and Analysis ............................................................................................... 13-25 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ....................................................................................................................... 26 Statement of Activities ........................................................................................................................... 27 Governmental Funds Balance Sheet .......................................................................................................................................... 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................ 29 Combined Statement of Revenues, Expenditures and Changes in Fund Balances ................................. 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................... 31 Proprietary Funds Statement of Net Position ...................................................................................................................... 32 Statement of Revenues, Expenditures and Changes in Net Position ....................................................... 33 Statement of Cash Flows ......................................................................................................................... 34 Notes to Financial Statements ................................................................................................................. 35-79 Required Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual General Fund .................................................................................................. 80 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual Street Improvement Fund .............................................................................. 81 Schedules of Proportionate Share of the Net Pension and OPEB Liabilities and Related Ratios and Schedule of Employer Contributions – PERA Local Government Division Trust Fund ................. 82 Schedules of Changes in the Town’s OPEB Liability and Related Ratios .............................................. 83 Other Supplementary Information Combining, Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds – Combining Balance Sheet ............................................................................................................ 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 85 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Governmental Funds Community Reinvestment Fund .................................................................................................. 86 Open Space Fund .......................................................................................................................... 87 Conservation Trust Fund ............................................................................................................. 88 Emergency Response Fund .......................................................................................................... 89 Community Center Fund ............................................................................................................. 90 Parking Services Fund ................................................................................................................. 91 Trails Expansion Fund ................................................................................................................. 92 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Proprietary Funds Power and Communications Fund ................................................................................................ 93 Water Fund .................................................................................................................................. 94 Combining, Individual Fund Financial Statements and Schedules Internal Service Funds – Combining Statement of Net Position ......................................................................................... 95 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ................................................................................................................ 96 Combining Statement Cash Flows ................................................................................................. 97 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Internal Service Funds Fleet Maintenance Fund .............................................................................................................. 98 Vehicle Replacement Fund ........................................................................................................... 99 Information Technology Fund ................................................................................................... 100 Medical Insurance Fund ............................................................................................................ 101 Risk Management Fund ............................................................................................................. 102 Statistical Section Financial Trends Net Position ................................................................................................................................. 103 Changes in Net Position ...................................................................................................... 104-105 Fund Balances – Governmental Funds ....................................................................................... 106 Changes in Fund Balances – Governmental Funds .................................................................... 107 Revenue Capacity Sales Tax Revenue by Type of Industry ..................................................................................... 108 Direct and Overlapping Sales Tax Rates .................................................................................... 109 Principal Sales Tax Categories .................................................................................................. 110 Debt Capacity Ratios of Outstanding Debt by Type ......................................................................................... 111 Ratios of General Bonded Debt Outstanding and Legal Debt Margin ...................................... 112 Direct and Overlapping Governmental Activities Debt ............................................................ 113 Pledged – Revenue Coverage ..................................................................................................... 114 Demographic and Economic Information Demographic and Economic Statistics ....................................................................................... 115 Largest Employers ..................................................................................................................... 116 Operating Information Full-Time Equivalent Employees by Function/Program ........................................................... 117 Operating Indicators by Function/Program ......................................................................... 118-119 Capital Assets Statistics by Function/Program ............................................................................ 120 Compliance Section State Compliance Local Highway Finance Report ........................................................................................... 121-122 Reports to Governmental Agencies Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................... 123-124 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance .............................. 125-126 Schedule of Findings and Questioned Costs ............................................................................... 127 Schedule of Expenditure of Federal Awards .............................................................................. 128 Notes to Schedule of Expenditures of Federal Awards ............................................................. 129 TOWN OF ESTES PARK LIST OF PRINCIPAL OFFICIALS TOWN GOVERNMENT The Town of Estes Park is governed by a Mayor and a six-member Board of Trustees. The Mayor and Trustees are elected for four year terms. The Trustees and the Mayor each have one vote in town board meetings. Listed below are the Town officials and principal staff members as of December 31, 2022. Mayor Elected 2020 Wendy Koenig Mayor Pro Tem Elected 2022 Scott Webermeier Trustees Re-elected 2022 Marie Cenac Elected 2022 Kirby Hazelton Elected 2020 Barbara MacAlpine Re-elected 2020 Patrick Martchink Elected 2020 Cindy Younglund Staff Town Administrator Travis Machalek Assistant Town Administrator Jason Damweber Town Clerk, Dir. of Admin Services Jackie Williamson Finance Director Duane Hudson Chief of Police David Hayes Director of Community Development Jessica Garner Director of Community Services Rob Hinkle Director of Public Works Greg Muhonen Director of Utilities Reuben Bergsten Public Information Officer Kate Miller Town Attorney Dan Kramer Municipal Judge David J. Thrower 1 2022 ORGANIZATIONAL CHART TOWN OF ESTES PARK ORGANIZATIONAL CHART CITIZENS MAYOR AND TRUSTEES Municipal Judge Town Attorney Utilities Police Finance Community Services Power & Communication Water Planning Building Town Clerk HR Engineering Parks Streets Facilities Fleet Parking and Transit Asst. Town Administrator Public Information Town Administrator Community Development Town Clerk’s Office Public Works Events Complex Visitor Services Patrol Communications (Dispatch) Community Services (Restorative Justice) Code Enforcement Risk Management Museum Information Technology 2 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Estes Park Colorado For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 Executive Director/CEO 3 Finance Department 970-586-5331dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG June 28, 2023 To: The Honorable Mayor, Board of Trustees, and Citizens of the Town of Estes Park, Colorado: Formal transmittal The Annual Comprehensive Financial Report (“ACFR”) of the Town of Estes Park, Colorado (the “Town”) for the year ended December 31, 2022, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town’s financial activities have been included. The information provided in this section is introductory in nature. Specific financial details are reviewed in the Management’s Discussion and Analysis section of this report. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Haynie & Company has issued an unmodified (“clean”) opinion on the Town of Estes Park’s financial statements for the year ended December 31, 2022. The independent auditor’s report is located at the front of the financial section of this report. Profile of the Government The Town of Estes Park, incorporated in 1917, is a destination resort community nestled in the Rocky Mountain foothills 65 miles northwest of Denver, Colorado. The Town is at the eastern entrance to Rocky Mountain National Park and is visited by over four million people each year. Rocky Mountain National Park has been the number one tourist attraction in northern Colorado for as long as records have been compiled. The Town of Estes Park currently occupies a land 4 Finance Department 970-586-5331dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG area of nearly seven square miles and serves an official population of 5,862 (2022 estimate). The Town is empowered to levy a property tax on both real and personal properties located within its boundaries. It is also empowered to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the Town Board. There were no significant annexations in 2022. Estes Park is a statutory town. Policy-making and legislative authority are vested in the governing board consisting of the Mayor and six Trustees. The governing board is responsible, among other duties, for passing ordinances, adopting the budget, appointing committees, and hiring the Town Administrator and the Town Attorney. The Town Administrator is responsible for carrying out the policies and ordinances of the governing body, and for overseeing the day-to-day operations of the government. The Board is elected on an at-large basis. Board members serve four-year staggered terms, with three trustees elected every two years. The Mayor is elected to serve a four-year term. Elected officials are limited to two consecutive elected terms of office. The ACFR includes all Town funds. The Town provides a broad range of services, including police protection, electric, broadband and water utility services, construction and maintenance of streets and infrastructure, municipal parks, museum, visitors’ center, community planning, building inspections, business and liquor licensing, and an extensive cultural events calendar. In addition to general government activities, the Town has significant operational and/or financial relationships with the Estes Park Building Authority (“EPBA”), the Estes Valley Fire Protection District (“EVFPD”), the Estes Valley Recreation and Park District (“EVRPD”), and the Estes Park Local Marketing District (Visit Estes Park – “VEP”). The EVFPD began operating as an independent taxing district in 2010, ending its long-standing status as a department of the Town. The Town continues to contribute to the EVFPD, with the amount (currently 7% of General Fund sales tax collected) being appropriated annually. The Town is also financially accountable for the EPBA, which provided financing for golf course improvements in 1990. The EPBA completed its most recent agreement with EVRPD in 2009, did not operate in 2010-22, and currently does not have plans or agreements in place for 2023. The EVRPD is a separately elected special purpose district formed in 1955 and was created for the purpose of supplying recreational facilities within its boundaries. VEP began operating as an independent taxing district in 2009 and collects a 2% lodging tax that is used to promote and advertise Estes Park as a vacation destination, a task previously borne by the Town. VEP is listed in the ACFR as the Local Marketing District component unit. Additional information on these entities can be found in Note 1 in the Notes to the Financial Statements. 5 Finance Department 970-586-5331dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG The annual budget serves as the foundation for the Town’s financial planning and controls. All departments of the Town are required to submit annual requests for appropriation to the Town’s Finance Director beginning in June. The Finance Director uses these requests as the starting point for developing a proposed budget. The proposed budget is then reviewed in a meeting with the Directors and a final balanced budget is then presented to the Town Administrator for his review and revisions. Next, the proposed budget is presented to the Town Board for deliberation in September/October. The board is required to hold public hearings on the proposed budget and must formally adopt the budget before December 15th. This date also serves as the deadline to certify the property tax mill levy to the Larimer County Commissioners. The appropriated budget is prepared by fund and department (e.g., General Fund and Public Works department). Budget- to-actual comparisons are provided in this report for each individual fund for which an appropriated annual budget has been adopted. For the General Fund, the Community Reinvestment Fund, and the Street Improvement Fund, this comparison is presented as part of the required supplemental information of the basic financial statements for the governmental funds. For the other governmental funds with appropriated annual budgets, the budget-to- actual comparison is presented in the Combining and Individual Fund Financial Statements and Schedules section of this report. The Town maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Town Board. Budgetary controls (the level at which expenditures cannot legally exceed the appropriated amount) are established at the fund level. The Town also maintains an encumbrance accounting system as a budgetary control to prevent expenditures from exceeding legal appropriations. Encumbered amounts lapse at fiscal year-end, and qualifying encumbrances are formally re-appropriated in the following year as necessary. Assessment of Town’s economic condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town operates. Local economy Beginning in March 2020, the COVID-19 global pandemic (pandemic) arrived in Colorado. The initial State Government actions taken to slow the spread of the virus resulted in short term closures for many of the local businesses, including closing Rocky Mountain National Park. Businesses began to reopen a few weeks later and the National Park went to a timed entry process to reduce crowding and the spread of the virus. These restrictions continued in some form for much of the remainder of the year, negatively impacting the local tourism based 6 Finance Department 970-586-5331dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG economy. However, by the end of the year, sales tax collections for 2020 were only down by 7.4% from 2019’s record collections. The recovery of the local economy continued throughout 2021 and 2022, setting a new record for sales tax collections. Sales tax collections for 2021 had been the previous record at $20,930,809. For 2022, sales tax collections set a new record at $22,636,311, an increase of 8% from the previous record. In April 2014, citizens approved a Ballot issue (1A) that implemented a 1% sales tax increase, sun- setting in 2024. The 10-year increase dedicated an estimated $2,000,000 annually to Street Improvements/Repairs (60% of the 1%), expansion of public trails (12.5%), construction of a community recreation center including facilities for the Senior Center (25%), and for acquisitions associated with emergency response capabilities of the Town (2.5%). For 2022, $4,527,262 in sales tax was collected in these special revenue funds. The Fort Collins/Loveland, Colorado unemployment rate decreased from 3.0% to 2.3% through December 2022 (source: U.S. Bureau of Labor Statistics). The Median Family Income in Estes Park (source: U.S. Census Bureau Quick Facts) was $56,166 in 2022. Meanwhile, the Denver-Aurora- Lakewood Colorado CPI (consumer price index) increased from 3.5% in 2021 to 8.0% in 2022. Long-term financial planning The Town is currently in the process of building a municipally owned and operated high speed broadband service for the Estes Valley doing business as Trailblazer Broadband. Trailblazer Broadband will eventually span the entire electric service territory, providing gig speed internet service over a fiber-to-the-premise network, the only option of its kind available to residential customers in the Estes Valley. Trailblazer Broadband is a division of the Power and Communication Fund and is managed and operated by the Town. To finance construction and startup costs for the new utility, the Town issued $30,030,000 in Power and Communication Fund revenue bonds in November 2019, refunding the remaining $3,030,000 left on the 2007 Light and Power Bonds. Construction is progressing on schedule with over 3,184 customers signed up and receiving service as of the date of this letter. Also, a small portion of these bond proceeds was used to complete the buildout of an electric smart meter project that provides real time detailed information on the status of the electric distribution system. During power outage events such as snowstorms, the smart meter system provides very valuable information to help manage responses throughout the service territory. 7 Finance Department 970-586-5331dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG Relevant financial policies The Town has adopted Fund Balance Policy 660 that establishes a minimum annual fund balance reserve that should be maintained in the various funds. For the General Fund, unassigned fund balance at the end of the year must meet a minimum of 25% of total expenditures. In addition, Cash and Investment Reserve and Contingency Policy # 670 establishes guidelines for a monthly minimum cash and investment balance of 2 months average expenditures in order to weather an unexpected significant downturn in the economy. In case the targeted cash and investment balance is not met in any particular month, the policy establishes a foundation of principles and goals to guide budgetary and fiscal management decisions as management takes appropriate action. Both reserve requirements were fully met during 2022. Major initiatives Numerous street improvement projects are well underway with some extending into 2023 and beyond, including a new roundabout at US 36 & Community Drive, the long awaited downtown street project, and numerous Fall River Trail system improvement projects. For the utilities, the buildout of the Trailblazer Broadband fiber network continues within the Power and Communications Fund and the Water Fund is in the process of upgrading the former Prospect Mountain Water District water distribution system. This project is partially funded by a USDA grant and loan package with construction expected to continue into late 2023. The Town continually strives to provide superior services to its citizens and visitors in a cost- effective manner, including aggressively seeking Federal and State grants, thus leveraging available local funds, such as in the aforementioned Fall River Trail and former Prospect Mountain Water District projects. Award and acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town for its annual comprehensive financial report (ACFR) for the fiscal year ended December 31, 2021. In order to be awarded a Certificate of Achievement, the Town must publish an easily readable and efficiently organized ACFR. This report satisfied both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Town believes that its current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 8 Finance Department 970-586-5331dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG The successful preparation of this report could not have been accomplished without the dedication and efforts of the entire staff of the Finance Department: Sharla Beesley, Laura Garcia, Tania Mitchell, Deb Holgorsen, Karen Johnson, Kim McEachern, Dee Johnston and Amy Stoddard. Valuable input was also received from Public Works, Community Development, the Power and Communications/Water utilities, Human Resources and the Public Information Officer. We also wish to extend appreciation to the Mayor and the Trustees for their efforts and support in setting and administering policies for the prudent financial management of the Town of Estes Park. Sincerely, Duane Hudson Finance Director 9 Independent Auditor’s Report Honorable Mayor and Board of Trustees Town of Estes Park, Colorado Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Estes Park, Colorado (the “Town”), as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Estes Park, Colorado, as of December 31, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (GAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 10 Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and GAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Town’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion, the budgetary comparison information, and pension schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and the Local Highway Finance Report, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. The information is the responsibility of management, and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules, and component unit financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 11 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2023, on our consideration of Town of Estes Park, Colorado’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town of Estes Park, Colorado’s internal control over financial reporting and compliance Littleton, Colorado June 28, 2023 12 Town of Estes Park, Colorado Management's Discussion and Analysis December 31, 2022 Town of Estes Park, Colorado MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 This section of the Town of Estes Park’s (the “Town”) financial statements provides a narrative overview and analysis of its financial activities for the year ended December 31, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal at the front of this report and the Town’s financial statements, which follow this section. Financial Highlights •The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at the close of 2022 by $163,533,969 ($89,840,000 in governmental activities net position and $73,693,969 in business-type activities net position). Of the governmental activities net position total, $17,973,032, or 20%, is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. Similarly, $27,724,282, or 38%, of business-type activities net positions is unrestricted. It is important to note that “Unrestricted Net Position” is an accounting term referring to lack of formal commitments (loans, etc.) of assets. It does not reflect the amount of assets that are informally committed to targeted fund balances, unobligated monies for future projects, etc. For example, the Town targets a fund balance (reserve) in the General Fund of 25% of expenditures. This is not considered a “restricted” fund balance, but the Town has earmarked the amount as a reserve for budgetary purposes. •Total net position of the Town increased by $15,887,031, or 11%, from 2021 to 2022, up from the $11,066,685 increase from 2020 to 2021. Net position of the governmental activities increased $8,472,185 compared to the $6,990,403 increase in 2021. Net position of the Town’s business- type activities increased $7,414,846 compared to the $4,076,282 increase in 2021. These changes are explored in further detail in the Government-wide Financial Analysis section of this Management’s Discussion and Analysis. •Total revenues, excluding transfers, increased $5,172,107, or 9%, to $61,699,174 compared to 2021. Governmental activities revenues increased $1,711,026, or 6%, to $30,038,065, while revenues of business-type activities increased $3,461,081, or 12%, to $31,661,109 compared to 2021. •The total expenses of all the Town’s programs, excluding transfers, increased $351,761, or less than 1%, to $45,812,143 compared to 2021. The expenses of governmental activities programs increased $39,968, or less than 1%, to $23,178,632, while the expenses of business-type activities increased $311,793, or less than 1%, from 2021 to $22,633,511. 13 •As of December 31, 2022, the Town’s governmental funds reported a combined ending fund balance of $27,759,875. Approximately 46%, or $12,690,815, is unrestricted, unassigned fund balance and, therefore, available for spending at the town’s discretion within the purposes specified for the town’s funds. Overview of the Financial Statements Management’s discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the basic financial statements. This report also contains other required supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide the reader of the Town’s basic financial statements a broad overview of the Town’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The statement of activities presents information showing how the net position of the Town changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused accrued vacation leave). Both the statement of net position and statement of activities distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, public safety, public works, and culture and recreation. The business-type activities of the Town include electric distribution and broadband services (Power and Communications Fund) and a water utility that treats and distributes water (Water Fund). The government-wide financial statements include not only the Town itself (known as the primary government), but also the legally separate entities, the Estes Park Building Authority and Local Marketing District (established by election in 2009). For informational purposes, the Building Authority did not have any financial balances or activity to report on during the year. The Local Marketing District began issuing separate financial statements starting December 31, 2017. Statements are available upon request by contacting Visit Estes Park at (970) 586-0500. This component unit is discretely presented in the Town’s financial statements as the Local Marketing District. 14 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances or spendable resources available at year end. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Community Reinvestment Fund, and the Street Improvement Fund, all of which are considered to be major funds. Data from the other six governmental funds, (Open Space Fund, Conservation Trust Fund, Emergency Response System Fund, Community Recreation Center Fund, the Trails Expansion Fund, and the Parking Services Fund) are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules elsewhere in this report. Proprietary Funds Proprietary funds are generally used to account for services for which the Town charges customers – either outside customers or internal units or departments of the Town. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The Town maintains the following two types of proprietary funds: • Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for the operations of the Power and Communications Fund and the Water Fund. These are considered to be major funds of the Town. • Internal Service funds are used by the Town to account for the costs of acquiring, operating and maintaining certain types of equipment and funding for Town-wide risk management and medical insurance programs. Because these services predominantly benefit governmental rather than business- type functions, the assets and liabilities of the internal service funds have been included within governmental activities in the government-wide financial statements. Internal service funds are combined 15 into a single, aggregated memo presentation in the proprietary fund financial statements. The internal service funds consist of Fleet Maintenance, Vehicle Replacement, Information Technology, Medical Insurance, and Risk Management Funds. Individual fund data for the internal service funds is provided in the form of combining statements in the “Combining and Individual Fund Financial Statements and Schedules” section. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s progress in funding its obligation to provide pension benefits to its employees, and budgetary comparison schedules for the general and major special revenue funds. The combining and individual fund statements and schedules referred to earlier in connection with non- major governmental funds and internal service funds are presented immediately following the required supplementary information. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Our analysis below focuses on the net position and changes in net position of the Town’s governmental and business-type activities. Table 1 - Net Position 2022 2021 Restated 2022 2021 Restated 2022 2021 Restated Current and other assets 35,061,022$ 29,167,779$ 41,767,761$ 40,528,162$ 76,828,783$ 69,695,941$ Capital assets 68,876,463 68,407,903 77,143,441 69,935,118 146,019,904 138,343,021 Total assets 103,937,485 97,575,682 118,911,202 110,463,280 222,848,687 208,038,962 Deferred outflows of resources 1,038,667 1,671,317 1,001,715 1,597,198 2,040,382 3,268,515 Long-term liabilities 6,017,280 9,975,867 34,179,774 38,208,247 40,197,054 48,184,114 Other liabilities 3,846,337 3,841,578 7,503,148 4,461,238 11,349,485 8,302,816 Total liabilities 9,863,617 13,817,445 41,682,922 42,669,485 51,546,539 56,486,930 Deferred inflows of resources 5,272,535 4,061,739 4,536,026 3,495,858 9,808,561 7,557,597 Net position: Invested in capital assets 63,172,558 61,939,706 44,719,687 45,872,510 107,892,245 107,812,216 Restricted 8,694,410 6,398,672 1,250,000 1,250,000 9,944,410 7,648,672 Unrestricted 17,973,032 12,729,796 27,724,282 18,772,625 45,697,314 31,502,421 Total net position 89,840,000$ 81,068,174$ 73,693,969$ 65,895,135$ 163,533,969$ 146,963,309$ 2021 was restated for account grouping changes implemented in 2022 and to reflect the prior period adjustment. (Note # 14) Governmental Activities Business-type Activities Total Primary Government 16 Analysis of Net Position Table 1 presents an analysis of the Town’s net position as of December 31, 2022. The Town’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $163,533,969 at the close of December 31, 2022. By far the largest portion of the Town’s net position (65%) reflects its net investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related still- outstanding debt used to acquire those assets. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net investment in capital assets increased $80,029, or less than 1%, compared to 2021. Much of this change is attributable to acquisition of assets plus debt retirement less asset retirements, current depreciation and use of bond proceeds. Some of the more significant asset acquisitions include $2,279,746 in street improvements, $7,601,440 in broadband construction, $2,282,537 in powerline construction, and $725,954 in water system improvements. Asset retirements totaled $2.2 million and depreciation expense increased to $6.4 million for 2022 as well. Other changes include expenditure of capital related long term debt proceeds of $9.2 million and retirement of capital related long term debt of $1.7 million. An additional 3% of the Town’s net position ($9,944,410) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($45,697,314) may be used to meet the government’s ongoing obligations to citizens and creditors. Restricted net position increased $2,295,738 from 2021, primarily due to accumulation of reserves for future planned projects and uncompleted capital projects in the Street Improvement Fund ($1,346,791), Open Space Fund ($408,335), and the Trails Expansion Fund ($361,318). The $14,477,383 increase in unrestricted net position was due in large part to unexpected sales tax revenue increases in the General Fund and uncompleted capital projects at year end, both in the Governmental Funds and the Proprietary Funds. At the end of the current fiscal year, the Town is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business- type activities. It is important to note that $4,756,301 in governmental unrestricted net position arises from the net position of the Town’s internal service funds, discussed above in “Overview of the Financial Statements – Proprietary Funds.” Although it is highly unlikely that these funds will be liquidated, in the event that they are, the distribution of the net position of these funds would result in a portion of these unrestricted net positions being liquidated to governmental activities and a portion to business-type activities. Analysis of Changes in Net Position As can be seen from Table 2, the Town’s total net position increased by $15,887,031 during 2022. This increase is explained in the governmental and business-type activities discussions below. 17 Governmental Activities Net position of governmental activities increased by $8,472,185 during 2022, accounting for 53% of the total increase in the Town’s net position. This increase was $1,481,792 more than the $6,990,403 increase in net position for 2021. During 2022, governmental revenues increased by $1,711,026 compared to 2021. This increase is primarily due to a $1.7 million increase in sales tax revenue from increases in general economic activity. Several other categories saw increases which offset the $1,106,458 decrease in capital grants received. The decrease in capital grant revenues was largely due to non-recurring Open Space state grants to purchase the Thumb Open Space in 2021. Total governmental expenses for 2022 increased by $39,968 compared to 2021. General government expenses decreased by $524,420 and Culture and recreation expenses decreased by $589,967, partially due to the decrease in the net pension liability. Public safety increased $619,295 largely due to increased personnel costs from increased positions, pay scale adjustments and less vacancies. Public works increased by $565,226 largely due to additional transportation contracted services and general operating increases in streets. Table 2 - Changes in Net Position 2022 2021 Restated 2022 2021 Restated 2022 2021 Restated Program revenue: Charges for services 2,896,410$ 2,410,586$ 30,922,224$ 27,599,659$ 33,818,634$ 30,010,245$ Operating grants and contributions 483,861 213,710 - 8,374 483,861 222,084 Capital grants and contributions 1,493,815 2,600,273 154,132 - 1,647,947 2,600,273 General revenue: Sales taxes 22,636,312 20,930,742 - - 22,636,312 20,930,742 Property taxes 461,255 406,217 - - 461,255 406,217 Franchise taxes 639,000 588,222 - - 639,000 588,222 Use taxes 365,369 409,078 - - 365,369 409,078 Other taxes 53,457 53,789 - - 53,457 53,789 Investment income (loss)44,217 (18,724) 200,153 (6,839) 244,370 (25,563) Gain (Loss) on disposal of capital assets - - - - - - Miscellaneous 964,369 733,146 384,600 598,834 1,348,969 1,331,980 Total revenues 30,038,065 28,327,039 31,661,109 28,200,028 61,699,174 56,527,067 Program expenses (includes indirect expense allocation): Governmental activities: General government 4,684,953 5,209,373 - - 4,684,953 5,209,373 Public safety 6,559,825 5,940,530 - - 6,559,825 5,940,530 Public works 6,559,015 5,993,789 - - 6,559,015 5,993,789 Culture and recreation 5,179,185 5,769,152 - - 5,179,185 5,769,152 Interest on long-term debt 195,654 225,820 - - 195,654 225,820 Business-type activities: Power and Communications - - 17,205,293 17,519,237 17,205,293 17,519,237 Water - - 5,428,218 4,802,481 5,428,218 4,802,481 Total expenses 23,178,632 23,138,664 22,633,511 22,321,718 45,812,143 45,460,382 Excess before transfers 6,859,433 5,188,375 9,027,598 5,878,310 15,887,031 11,066,685 Transfers In (Out)1,612,752 1,802,028 (1,612,752) (1,802,028) - - Increase in net position 8,472,185 6,990,403 7,414,846 4,076,282 15,887,031 11,066,685 Net position, beginning of year 81,367,815 74,377,412 66,279,123 61,818,853 147,646,938 136,196,265 Prior period restatement - - - 383,988 - 383,988 Net position, end of year 89,840,000$ 81,367,815$ 73,693,969$ 66,279,123$ 163,533,969$ 147,646,938$ 2021 was restated for account grouping changes implemented in 2022 and to reflect the prior period adjustment. (Note # 14) Governmental Business-type Total Primary Government 18 Charts 1 and 2 illustrate the Town’s governmental activities expenses and revenues by function and its revenues by source. General revenues such as sales taxes, property and other taxes are not shown in Chart 1 by program, but are used to support program activities town wide and included in Chart 2. For governmental activities overall, without regard to program, sales taxes are the largest single source (75%), followed by capital grants and contributions and charges for services. Net Position increased $8,472,185 during the current fiscal year. Contributing factors have been discussed earlier in this section. $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 General Govt Public Safety Public Works Culture and Recreation Interest on LT Debt Th o u s a n d s Chart 1: 2022 Expenses and Program Revenues - Governmental Activities Prog Rev Expenses Charges for services 10% Operating grants and contributions 2% Capital grants and contributions 5% Sales taxes 75% Property taxes 2% Franchise taxes 2% Use taxes 1% Other taxes 0% Investment income 0%Miscellaneous 3% Chart 2: 2022 Revenues by Source -Governmental Activities 19 Business-type Activities Net position in business-type activities increased $7,414,846 in 2022. This increase was $3,338,564, or 82%, more than the $4,076,282 increase in net position in 2021. Total business-type revenues increased $3,461,081, or 12%, compared to 2021. Charges for services increased $3,322,565 due to rate changes and sales volume changes, including a $1,022,805 increase in Trailblazer Broadband charges from the continued buildout of the system. Expenses of business-type activities increased $311,793, or 1% compared to 2021. This was partially due to retirement of the construction in progress for the Glacier Creek Water Treatment Plant upgrade as management reevaluates the upgrades needed to keep both plants in operation. This was partially offset by the reductions in the net pension liabilities in both the Power and Communication Fund and the Water Fund. $0 $5,000 $10,000 $15,000 $20,000 $25,000 Light and Power Water Th o u s a n d s Chart 3: 2022 Expenses and Program Revenues - Business-type Activities Prog Rev Expenses Charges for services 98% Operating grants and contributions 0% Capital grants and contributions 0% Investment income 1% Miscellaneous 1% Chart 4: 2022 Revenue by Source - Business-type Activities 20 As can be seen from Charts 3 and 4, the Town’s Power and Communications utility and Water utility account for the Town’s business-type activities, representing 100% of total business-type activities expenses. Charges for services provide the largest share of revenues (98%). The Power and Communications Fund and the Water Fund transferred a total of $1,612,752 out to Governmental Activities in 2022 (General Fund). In 2019, the Power and Communication Fund began construction of Trailblazer Broadband, a municipally owned and operated fiber-to-the-premise internet service. 2022 was the fourth year of Trailblazer Broadband operations with the Division beginning to cover its operating costs and debt service through user charges. The 2022 broadband revenues were $2,292,331, operating expenses were $1,148,567 and debt service was $1,310,602. Costs for electric and water operations continue to be covered by customer charges for service revenues in accordance with policy. The utility funds are also subject to debt coverage requirements for the Power and Communication revenue bonds and the Water loan and all requirements were met. Financial Analysis of the Town’s Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows and balances of resources available for spending. Such information is useful in assessing the Town’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $27,759,875, an increase of $5,721,641 from 2021. Approximately 40% of this ending fund balance constitutes unassigned fund balance, which is available for spending at the Town’s discretion. The remainder of fund balance is non-spendable, restricted or assigned to indicate that it is not available for new spending because it has already been committed to inventories, other prepaid items, specific governmental funds, capital improvements, future appropriations, and emergencies. The General Fund is the primary operating fund of the Town. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $11,207,757 ($12,678,756 in 2021). As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund operating expenditures, including transfers out. The ratio for 2022 is 44%, a decrease from 2021’s ratio of 67%. As discussed elsewhere in this document, sales tax revenues have increased significantly in 2022, setting a new record for sales tax collections. This additional revenue allowed the Town to establish a capital outlay reserve in the amount of $1,700,000 which was transferred to the Community Reinvestment Fund as the Town’s capital project fund. Additional unreserved fund balance was transferred as well, resulting in the decrease in the unassigned fund balance in 2022. The Community Reinvestment Fund is the Town’s capital project fund and transfers funding based on the planned capital projects. Significant capital projects were under construction in 2022 which were not completed by the end of the year. As a result, significant transfers had not been expended by the end of 2022. Also, as mentioned above, the General Fund transferred $1,700,000 in capital reserve funds to the 21 Community Reinvestment Fund for future projects as well. This resulted in the fund balance growing to $3,709,827 in 2022. The Street Improvement Fund was created by the 1% sales tax initiative approved in April 2014 which went into effect on July 1, 2014. In 2022, expenditures were limited to street repairs and a few overlay projects due to staffing vacancies. Fund balance grew to $3,994,914 as sales tax revenues exceeded expenditures in 2022. The Community Center Fund, one of the “Other Governmental Funds”, was created by the 1% sales tax initiative approved in April 2014. During 2017, the Town entered into an agreement with Estes Valley Recreation and Park District (EVRPD) to help pay for the costs of the new Estes Valley Community Center which began construction in 2017 and was completed early in 2019. During 2022, the Community Center Fund remitted $1,131,816 in accumulated sales tax monies to EVRPD for that purpose. In 2022, the Emergency Response System Fund primarily reflected debt service on a radio replacement lease purchase. Fund balance grew as sales tax revenues exceeded expenditures in 2022. The Trails Expansion Fund is one of the funds created by the 1% sales tax initiative approved in April 2014. During 2022, construction began later in the year on the next phases of Fall River Trail improvement project. Due in part to the later start of the construction, the increase in sales tax revenues outpaced project expenditures resulting in an increase in Fund Balance. In 2022, the Open Space Fund was also used to fund part of the Fall River Trail improvement project. Due to the timing of the start of construction, Fund Balance increased as revenues outpaced project expenditures. The Parking Services Fund is a new fund created in 2020 to account for the operations of the new paid parking program for downtown Estes Park. Expenditures increased from $676,695 in 2021 to $737,807 in 2022 largely from contracted service costs increases. The other governmental funds were comparable to the prior year. Proprietary funds As already discussed, the Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. As of December 31, 2022, the unrestricted net position of the Power and Communications Fund was $13,511,534 and the Water Fund was $12,923,960. The Power and Communications Fund had a net increase of $4,180,839 and the Water Fund had a net increase of $3,436,115 for 2022. The Power and Communications Fund and Water Fund both easily maintained their required bonded debt ratios (see statistical tables, Schedule 11). Other factors concerning the finances of these two funds have already been addressed in the discussion of the Town’s business-type activities. General Fund Budgetary Highlights The Town’s final budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects and other supplemental appropriations and adjustments approved during the fiscal year. The final budgeted 2022 appropriations for the General Fund, including transfers 22 out, was $526,994 more than the original budget. The primary reasons for this difference are related to the following changes: • $1,079,355 increase from rollover of uncompleted PO’s and projects, including $454,370 for a new electric trolley. • $200,000 increase in building inspection contracted services due to volume of building activity. • $238,124 increase in various salary budgets due to a one time mid-year pay scale adjustment. • $226,764 increase in public transit services funded by a federal grant. • $141,963 increase in funding for the Fire District. • $1,700,000 decrease in transfers to the Community Reinvestment Fund to establish a capital outlay reserve. Actual revenue and transfers in were $225,436 (1%) greater than final budgeted revenues and transfers in, with additional miscellaneous income as the most significant variance. Actual expenditures and transfers out were $4,588,556 (15%) less than the final budgeted appropriations. The primary factors contributing to this favorable variance include: • General Government expenditures were $1,769,737 less than budgeted. The Planning division had $283,904 less in consulting than budgeted. Facilities had $160,837 in building maintenance planned for 2022 that were not completed by year end. A new workforce housing appropriation had $496,729 unused by year end as well. Numerous other variances accounted for the rest of the General Government budget savings. • Public Works expenditures were $1,351,191 less than budgeted. Vacancies in streets and stormwater accounted for $331,203 of this difference. Parking services incurred $359,208 less in transportation fees than anticipated. • Culture and Recreation expenditures were $1,006,078 less than budgeted. Some of the major repairs to walkways and bikeways were not completed by Parks and Recreation. Some planned repairs and maintenance were not completed at the visitor center. Finally, Special Events had vacancy savings in 2022. • Capital Outlay expenditures were $238,327 less than budgeted. Much of this is due to numerous small projects that were not completed in 2022. The resulting actual ending fund balance for the General Fund of $16,145,860 was $9,679,578 more than the Final Budget’s projected ending fund balance. Capital Asset and Debt Administration Capital Assets Governmental activities capital asset additions for 2022 were $4,612,252, with a net increase (after disposal/retirement/transfers of capital assets) of $4,225,763. Some of the more significant capital acquisitions included: • Equipment acquisition - $1,172,822. • Street Improvements - $2,279,746. • Park improvements - $111,229. • Trail improvements - $112,300. 23 Business-type capital asset additions for 2022 were $11,188,037, with a net increase (after disposal/retirement/transfers of capital assets) of $9,314,267. Some of the more significant capital purchases in this area, including capital acquisitions in progress, were: • Electric infrastructure (streetlights, overhead and underground distribution lines) - $2,282,537 • Trailblazer Broadband fiber infrastructure – $7,601,440 • Water infrastructure (distribution lines) - $725,954 Additional information can be found in notes to financial statements Note 4 – Capital Assets. Debt Administration The governmental activities are currently obligated on the 2013 Certificates of Participation to finance the Multipurpose Event Center Complex. Total payments are approximately $520,000 per year and are paid out of the Community Reinvestment Fund. The remaining balance as of December 31, 2022 is $2,410,000. The governmental activities are also obligated on the 2017 Lease Purchase Agreement to finance the Estes Park Visitor Center Parking Garage. Total payments are approximately $400,000 per year and are also paid out of the Community Reinvestment Fund. The remaining balance as of December 31, 2022 is $3,064,057. In 2019, the Town entered into a lease purchase agreement to upgrade the Town’s emergency hand held radios for both governmental-type and business-type activities. The total payments for the governmental-type activities is approximately $49,000 per year and are paid out of the Emergency Response System Fund. The remaining balance as of December 31, 2022 is $130,486. The business-type activities (utility funds) are currently obligated to one Power and Communication revenue bond and two Water issues. The Power and Communication bonds Series A and Series B were issued in Nov 2019 to fund the buildout of the Trailblazer Broadband fiber network and complete implementation of the electric system smart meters. The Series A bonds mature in 2039 with a remaining balance of $21,820,000 as of December 31, 2022 and the Series B bonds mature in 2029 with a remaining balance of $7,050,000 as of December 31, 2022. The 2008 water loan was obtained to finance a membrane filter and to increase capacity at the Mary’s Lake Treatment Plant. Maturing in 2028, there is a remaining balance of $2,037,699 at the end of 2022. In 2020, the Town entered into a USDA loan to finance upgrades to the Park Entrance Mutual Pipeline and Water Company distribution system. The loan matures in 2060 with a remaining balance of $517,096 as of December 31, 2022. The business-type activity share of the emergency hand held radio replacement lease purchase has a balance of $58,257 as of December 31, 2022. In 2022, the Town entered into a construction loan to make water distribution system upgrades for the former Prospect Mountain Water District areas which has a balance of $54,376 as of December 31, 2022. The Town’s Power and Communications fund currently maintains a rating from Standard & Poor’s and Fitch of “A+“ on its outstanding revenue bonds. State statutes limit the amount of general obligation debt a government entity may issue to 3% of its total assessed valuation. The debt limitation for the Town as of December 31, 2022, is $7,481,925 (see statistical section under Schedule 9). Additional information on these loans can be found in Note 5 – Long-Term Debt of the notes to financial statements, and in the statistical section under Schedule 8. 24 Other Significant Matters • The Town continues to aggressively seek grants to assist in creating and putting into service assets that enhance the lives of its citizens and the enjoyment of its visitor base. This includes trail expansion and other enhancements as well as system repairs and maintenance type projects. Requests for Information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the Town. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, P.O. Box 1200, Estes Park, Colorado 80517. 25 Basic Financial Statements COMPONENT UNIT GOVERNMENTAL BUSINESS-TYPE MARKETING ACTIVITIES ACTIVITIES TOTAL DISTRICT ASSETS Cash and investments 31,128,518$ 28,118,430$ 59,246,948$ 2,698,093$ Restricted cash and investments - 1,988,996 1,988,996 - Accounts receivable, net 486,900 5,818,424 6,305,324 406,429 Taxes receivable 2,951,991 - 2,951,991 309,338 Intergovernmental receivable 1,013,569 101,186 1,114,755 - Inventories 26,524 3,945,791 3,972,315 - Prepaid items 207,565 1,543 209,108 7,772 Internal balances (1,288,787) 1,288,787 - - Capital assets, not being depreciated 13,058,252 31,222,514 44,280,766 - Capital assets, net of accumulated depreciation 55,818,211 45,920,927 101,739,138 23,087 Net pension asset 534,743 504,603 1,039,346 88,592 TOTAL ASSETS 103,937,486 118,911,201 222,848,687 3,533,311 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 134,191 115,444 249,635 31,940 Deferred outflows related to pension 904,476 886,271 1,790,747 155,326 TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,038,667 1,001,715 2,040,382 187,266 LIABILITIES Accounts payable 910,381 3,164,298 4,074,679 200,823 Accrued liabilities 393,313 784,778 1,178,091 - Deposits - 291,400 291,400 - Accrued interest payable 77,430 134,237 211,667 - Claims payable 671,640 - 671,640 - Unearned revenue 504,191 1,815,876 2,320,067 - Long-term liabilities:- Due within one year 1,289,383 1,312,558 2,601,941 - Due in more than one year 5,298,774 33,587,008 38,885,782 82,629 Net OPEB liability - due in more than one year 718,506 592,766 1,311,272 69,266 TOTAL LIABILITIES 9,863,618 41,682,921 51,546,539 352,718 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to Pension 4,634,565 4,373,344 9,007,909 772,018 Deferred inflows related to OPEB 183,568 162,682 346,250 24,470 Property taxes 454,402 -454,402 - TOTAL DEFERRED INFLOWS OF RESOURCES 5,272,535 4,536,026 9,808,561 796,488 NET POSITION Net investment in capital assets 63,172,558 44,719,687 107,892,245 23,087 Restricted for: Parks and open space 1,681,110 - 1,681,110 Capital improvements 6,214,132 - 6,214,132 Operations and Maintenance reserves - 1,250,000 1,250,000 Emergencies 799,168 - 799,168 92,706 Unrestricted 17,973,032 27,724,282 45,697,314 2,455,578 TOTAL NET POSITION 89,840,000$ 73,693,969$ 163,533,969$ 2,571,371$ PRIMARY GOVERNMENT Town of Estes Park, Colorado Statement of Net Position December 31, 2022 The accompanying notes are an integral part of these financial statements. 26 PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND GOVERNMENTAL BUSINESS-TYPE LOCAL MARKETING FUNCTIONS / PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES TOTAL DIRECT Primary Government Governmental activities: General government 4,684,953$ 516,608$ 100,710$ 686,797$ (3,380,838)$ -$ (3,380,838)$ -$ Public safety 6,559,825 733,288 22,134 3,848 (5,800,555) - (5,800,555) - Public works 6,559,015 857,177 361,017 754,976 (4,585,845) - (4,585,845) - Culture and recreation 5,179,185 789,337 - 48,194 (4,341,654) - (4,341,654) - Interest on long-term debt 195,654 - - - (195,654) - (195,654) - Total Governmental Activities 23,178,632 2,896,410 483,861 1,493,815 (18,304,546) - (18,304,546) - Business-Type Activities: Power and communications 17,205,293 22,418,799 - 106,968 - 5,320,474 5,320,474 - Water 5,428,218 8,503,426 - 47,164 - 3,122,372 3,122,372 - Total Business-Type Activities 22,633,511 30,922,225 - 154,132 - 8,442,846 8,442,846 - Total Primary Government 45,812,143$ 33,818,635$ 483,861$ 1,647,947$ (18,304,546)$ 8,442,846$ (9,861,700)$ -$ Component Unit Local Marketing Direct 2,772,922 328,246 42,992 - - - - (2,401,684) Total Component Unit 2,772,922$ 328,246$ 42,992$ -$ -$ -$ -$ (2,401,684)$ Taxes: Property taxes 461,255$ -$ 461,255$ -$ Sales taxes 22,636,312 - 22,636,312 - Franchise taxes 639,000 - 639,000 - Use taxes 365,369 - 365,369 - Other taxes 53,457 - 53,457 3,415,369 Investment income (expense)44,217 200,153 244,370 2,270 Miscellaneous 964,369 384,599 1,348,968 697 Transfers 1,612,752 (1,612,752) - - Total general revenues and transfers 26,776,731 (1,028,000) 25,748,731 3,418,336 Change in net position 8,472,185 7,414,846 15,887,031 1,016,652 NET POSITION, BEGINNING, as restated 81,367,815 66,279,123 147,646,938 1,554,719 NET POSITION, ENDING 89,840,000$ 73,693,969$ 163,533,969$ 2,571,371$ Town of Estes Park, Colorado Statement of Activities For the Year Ended December 31, 2022 NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION Primary Government COMPONENT UNIT The accompanying notes are an integral part of these financial statements. 27 COMMUNITY STREET OTHER TOTAL GENERAL REINVESTMENT IMPROVEMENT GOVERNMENTAL GOVERNMENTAL ASSETS FUND FUND FUND FUNDS FUNDS Cash and cash investments 14,418,408$ 3,725,619$ 3,844,795$ 4,111,982$ 26,100,804$ Accounts and other receivables 239,513 46 1,689 16,578 257,826 Intergovernmental receivable 663,990 - - 349,579 1,013,569 Taxes receivable 2,452,473 - 299,711 199,807 2,951,991 Due (to) from other funds 310,000 - -(310,000)- Prepaid items 15,195 - -- 15,195 TOTAL ASSETS 18,099,579$ 3,725,665$ 4,146,195$ 4,367,946$ 30,339,385$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Accounts payable 491,127 15,838 149,248 203,073 859,286 Accrued liabilities 369,158 - 2,033 6,105 377,296 TOTAL LIABILITIES 860,285 15,838 151,281 209,178 1,236,582 DEFERRED INFLOWS OF RESOURCES Property taxes 454,402 - - - 454,402 Unavailable revenue 639,032 - - 249,494 888,526 TOTAL DEFERRED INFLOWS OF RESOURCES 1,093,434 - - 249,494 1,342,928 FUND BALANCES Nonspendable Prepaid items 15,195 - - - 15,195 Restricted for: Parks and open space 72,895 - - 1,608,215 1,681,110 Capital improvements - - 3,913,073 2,301,059 6,214,132 Emergencies 717,327 - 81,841 - 799,168 Assigned to subsequent year's budget - appropriation of fund balance 4,312,686 - - - 4,312,686 Capital improvements 3,709,827 3,709,827 Unassigned 11,027,757 - - - 11,027,757 TOTAL FUND BALANCES 16,145,860 3,709,827 3,994,914 3,909,274 27,759,875 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 18,099,579$ 3,725,665$ 4,146,195$ 4,367,946$ 30,339,385$ Town of Estes Park, Colorado Balance Sheet Governmental Funds December 31, 2022 The accompanying notes are an integral part of these financial statements. 28 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds 27,759,875$ Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds: Capital assets, net of internal funds of $1,372,411 67,504,052 The deferred outflows below are not current assets or financial resources; and the deferred inflows are not due and payable in the current period and therefore are not reported in the Governmental Funds. Deferred outflows related to pension 904,476 Deferred outflows related to OPEB 134,191 Deferred inflows related to pension (4,634,565) Deferred inflows related to OPEB (183,568) Long-term liabilities are not due and payable in the current period and therefore are not reported as liabilities in the governmental funds balance sheet. Long-term liabilities at year end consist of: Net pension asset 534,743 Net OPEB liability (net of internal service funds of $4,622)(713,884) Accrued interest payable (77,430) Long-term debt liabilities (net of internal service fund liabilities of $59,634)(6,528,524) Total long-term liabilities (6,785,095) Other long term assets are not available to pay current expenditures and therefore, are deferred inflows of resources in the fund financial statements 384,332 Internal service funds are used by management to charge the costs of certain activities such is insurance, technology, and vehicles to individual funds. A portion of the assets and liabilities of the internal service fund is included in the governmental activities in the statement of net position.4,756,301 Total net position - governmental activities 89,840,000$ to the Statement of Net Position For the Year Ended December 31, 2022 Town of Estes Park, Colorado Reconciliation of the Governmental Funds Balance Sheet The accompanying notes are an integral part of these financial statements. 29 COMMUNITY STREET OTHER TOTAL GENERAL REINVESTMENT IMPROVEMENT GOVERNMENTAL GOVERNMENTAL FUND FUND FUND FUNDS FUNDS REVENUES: Taxes 19,628,130$ -$ 2,716,357$ 1,810,906$ 24,155,393$ Licenses and Permits 991,751 - - 22,641 1,014,392 Intergovernmental 1,283,094 - - 639,837 1,922,931 Charges for Services 720,532 - - 781,973 1,502,505 Fines and Forfeitures 48,861 - - 58,841 107,702 Rental income 271,811 - - - 271,811 Contributions 54,745 - - - 54,745 Investment Income 29,106 25 11,692 3,394 44,217 Miscellaneous 882,860 (1) - 315 883,174 TOTAL REVENUES 23,910,890 24 2,728,049 3,317,907 29,956,870 EXPENDITURES: Current: General Government 5,354,549 26,014 - - 5,380,563 Public Safety 6,814,248 - - - 6,814,248 Public Works 2,453,977 - 601,539 741,823 3,797,339 Culture and Recreation 4,041,933 - -1,211,643 5,253,576 Debt Service: Principal - 703,463 - 39,937 743,400 Interest - 215,967 - 8,606 224,573 Capital outlay 466,043 1,940,694 779,719 330,207 3,516,663 TOTAL EXPENDITURES 19,130,750 2,886,138 1,381,258 2,332,216 25,730,362 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 4,780,140 (2,886,114) 1,346,791 985,691 4,226,508 OTHER FINANCING SOURCES (USES) Transfers in 1,612,752 6,296,300 - - 7,909,052 Transfers out (6,413,919) - - - (6,413,919) NET CHANGE IN FUND BALANCE (21,027) 3,410,186 1,346,791 985,691 5,721,641 FUND BALANCES, BEGINNING OF YEAR 16,166,887 299,641 2,648,123 2,923,583 22,038,234 FUND BALANCES, END OF YEAR 16,145,860$ 3,709,827$ 3,994,914$ 3,909,274$ 27,759,875$ and Changes in Fund Balances For the Year Ended December 31, 2022 Town of Estes Park, Colorado Governmental FundsCombined Statement of Revenues, Expenditures The accompanying notes are an integral part of these financial statements. 30 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds 5,721,641$ Capital outlays are reported in the governmental funds as an expenditure; however, for governmental activities, these costs are shown in the statement of net position and allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeds capital outlay. Depreciation expense (3,586,683) Net book value of capital assets disposed (57,193) Capital outlay 3,559,510 Net amount (84,366) Payments of long-term debt principal are expenditures in governmental funds, but the payments reduce long-term liabilities in the statement of net position and do not affect the statement of activities. This amount represents payments on capital leases during the current year.743,400 Some revenues/expenses reported in the statement of activities do not require the receipt/use of current financial resources and, therefore, are not reported as revenues/expenditures in the governmental funds. Change in environmental remediation liability 4,964 Change in accrued interest 8,028 Amortization of lease purchase agreement premium 20,891 Change in accrued compensated absences 79,719 Net amount 113,602 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental fund statement of revenues, expenditures and changes in fund balances.18,620 Pension income relating to changes in the Town's defined benefit retirement plan accounts do not provide current financial resources, and therefore, are not reported as revenue in the governmental fund financial statements.1,815,021 OPEB income relating to changes in the Town's defined benefit retirement plan accounts do not provide current financial resources, and therefore, are not reported as revenue in the governmental fund financial statements.(24,245) An internal service fund is used by management to charge the costs of fleet maintenance, vehicle replacement and information technology to individual funds. A portion of the net income of the internal service fund is reported with governmental activities in the statement of activities.168,512 Change in net position - governmental activities 8,472,185$ to the Statement of Activities For the Year Ended December 31, 2022 Town of Estes Park, Colorado Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of Governmental Funds The accompanying notes are an integral part of these financial statements. 31 ASSETS Governmental Activities Current Assets: Power and Communications Fund Water Fund Total Enterprise Funds Internal Service Fund Cash and investments 14,203,622$ 13,914,808$ 28,118,430$ 5,027,714$ Restricted cash and investments 1,988,996 - 1,988,996 - Accounts receivable, net 3,576,294 2,242,130 5,818,424 229,074 Intergovernmental receivable 101,186 - 101,186 - Inventories 3,557,639 388,152 3,945,791 26,524 Prepaid Items 1,543 - 1,543 192,370 Total Current Assets 23,429,280 16,545,090 39,974,370 5,475,682 Non-Current Assets: Capital assets, not being depreciated 25,299,265 5,923,249 31,222,514 177,143 Capital assets, net of accumulated depreciation 26,080,534 19,840,393 45,920,927 1,195,267 Net pension asset 349,324 155,279 504,603 - Total Non-Current Assets 51,729,123 25,918,921 77,648,044 1,372,410 TOTAL ASSETS 75,158,403 42,464,011 117,622,414 6,848,092 DEFERRED OUTFLOWS OF RESOURCES Related to OPEB 80,108 35,336 115,444 - Related to pension 618,605 267,666 886,271 - TOTAL DEFERRED OUTFLOWS OF RESOURCES 698,713 303,002 1,001,715 - LIABILITIES Current Liabilities: Accounts payable 2,817,762 346,536 3,164,298 51,090 Accrued liabilities 80,701 704,077 784,778 16,017 Customer deposits 283,900 7,500 291,400 - Claims payable - - 671,640 Accrued interest payable 97,804 36,433 134,237 - Unearned revenue 1,815,876 - 1,815,876 - Compensated absences payable, current portion 220,493 87,799 308,292 40,860 Loans payable, current portion 15,499 2,421 17,920 - Revenue bonds payable, current portion 666,303 320,043 986,346 - Total Current Liabilities 5,998,338 1,504,809 7,503,147 779,607 Non-Current Liabilities: Compensated absences payable 111,025 67,499 178,524 18,774 OPEB liability 409,189 183,577 592,766 4,622 Long term debt 31,115,544 2,292,940 33,408,484 - Total Non-Current Liabilities 31,635,758 2,544,016 34,179,774 23,396 TOTAL LIABILITIES 37,634,096 4,048,825 41,682,921 803,003 DEFERRED INFLOWS OF RESOURCES Related to OPEB 112,477 50,205 162,682 - Related to pension 3,027,560 1,345,784 4,373,344 - TOTAL DEFERRED INFLOWS OF RESOURCES 3,140,037 1,395,989 4,536,026 - NET POSITION Net investment in capital assets 21,571,449 23,148,238 44,719,687 1,372,410 Restricted for operations and maintenance reserve - 1,250,000 1,250,000 - Unrestricted 13,511,534 12,923,961 26,435,495 4,672,679 TOTAL NET POSITION 35,082,983$ 37,322,199$ 72,405,182$ 6,045,089$ 1,288,787$ Total Net Position Business-Type Activities 73,693,969$ Town of Estes Park, Colorado Proprietary Fund Statement of Net Position December 31, 2022 Business-Type Activities Amounts reported for Business-Type Activities in the Statement of Net Position are different because: An internal service fund is used by management to charge the costs of fleet maintenance,vehicle replacement and information technology to individual funds.A portion of the assets and liabilities of the internal service fund is included in business-type activities in the statement of net position. The accompanying notes are an integral part of these financial statements. 32 Governmental Activities OPERATING REVENUES Power and Communications Fund Water Fund Total Internal Service Fund Charges for services 22,418,799$ 6,499,163$ 28,917,962$ 6,287,115$ Grant revenue 106,968 47,164 154,132 34,608 Miscellaneous 188,012 170,605 358,617 7,994 TOTAL OPERATING REVENUES 22,713,779$ 6,716,932$ 29,430,711$ 6,329,717$ OPERATING EXPENSES Source of supply 8,652,413 88,828 8,741,240 - Purification - 844,146 844,146 - Distribution 2,676,962 1,127,155 3,804,117 - Customer accounts 396,188 207,778 603,966 - Administration and general 1,987,770 786,716 2,774,486 1,231,777 Depreciation expense 1,432,792 954,835 2,387,627 298,847 Broadband operations 1,148,566 - 1,148,566 4,375,380 Medical expenses - - - 372,104 TOTAL OPERATING EXPENSES 16,294,691 4,009,458 20,304,148 6,278,108 OPERATING INCOME (LOSS)6,419,088 2,707,474 9,126,563 51,609 NON-OPERATING REVENUES (EXPENSES) Investment income (expense)160,353 39,800 200,153 10,468 Gain (loss) on sale of assets - (1,269,116) (1,269,116) 41,854 Tap fees - 2,004,263 2,004,263 - Interest expense (910,602) (149,644) (1,060,246) - TOTAL NON-OPERATING REVENUES (EXPENSES)(750,249) 625,303 (124,946) 52,322 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 5,668,839 3,332,777 9,001,617 103,931 Transfers in - 228,091 228,091 135,000 Transfers out (1,488,000) (124,752) (1,612,752) (245,472) CHANGE IN NET POSITION 4,180,839 3,436,116 7,616,956 (6,541) NET POSITION, BEGINNING OF YEAR, as restated 30,902,144 33,886,083 64,788,226 6,051,630 NET POSITION, END OF YEAR 35,082,983$ 37,322,199$ 72,405,182$ 6,045,089$ Change in Net Position of Business-Type Activities 7,616,956 (202,109) Total Change in Net Position of Business-Type Activities 7,414,847$ Town of Estes Park, Colorado Proprietary Fund Statement of Revenues, Expenditures and Changes in Net Position For the Year Ended December 31, 2022 Amounts reported for Business-Type Activities in the Statement of Activities are different because: An internal service fund is used by management to charge the costs of fleet maintenance, vehicle replacement and information technology to individual funds. A portion of the net income of the internal service fund is included in business- type activities in the statement of activities. Business-Type Activities The accompanying notes are an integral part of these financial statements. 33 Governmental Activities Power and Communications Fund Water Fund Total Internal Service Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 23,453,852$ 5,369,784$ 28,823,636$ 6,193,460$ Cash received from other sources 294,980 217,769 512,749 42,602 Cash paid for goods and services (10,896,001) (2,055,691) (12,951,692) (4,902,445) Cash paid to employees (3,500,492) (1,506,845) (5,007,337) (918,261) NET CASH FROM OPERATING ACTIVITIES 9,352,339 2,025,017 11,377,356 415,356 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers from other funds - 228,091 228,091 135,000 Transfers to other funds (1,488,000) (124,752) (1,612,752) - NET CASH FROM NON-CAPITAL FINANCING ACTIVITIES (1,488,000) 103,339 (1,384,661) 135,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (10,049,554) (838,965) (10,888,519) (679,832) Proceeds from sale of capital assets 23,453 - 23,453 (171,907) Proceeds from the issuance of long-term debt - 54,376 54,376 - Principal paid on long-term debt (414,736) (316,382) (731,118) - Interest paid on long-term debt (1,147,782) (152,118) (1,299,900) - Tap fees received - 2,004,263 2,004,263 - NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (11,588,619) 751,174 (10,837,445) (851,739) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 160,353 39,800 200,153 10,468 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES 160,353 39,800 200,153 10,468 Non-cash prior period adjustment, LIFO Inventory change in accounting priniciple - - -$ -$ NET CHANGE IN CASH AND CASH EQUIVALENTS (3,563,927) 2,919,330 (644,597) (290,915) CASH AND CASH EQUIVALENTS Beginning of Year 19,756,545 10,995,478 30,752,023 5,522,247 End of Year 16,192,618$ 13,914,808$ 30,107,426$ 5,231,332$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income 6,419,088$ 2,707,474$ 9,126,562$ 51,609$ Adjustments to reconcile operating income to net cash flows from operating activities Depreciation 1,432,792 954,835 2,387,627 298,847 (Increase) decrease in operating assets: Accounts receivable (656,773) (1,129,378) (1,786,151) (93,655) Inventories 633,287 (43,306) 589,981 (5,171) Prepaid items (1,543) - (1,543) (115,560) (Increase) decrease in operating liabilities: Accounts payable 873,485 239,874 1,113,359 281,266 Accrued liabilities 7,387 95,412 102,799 699 Unearned revenues 1,691,826 - 1,691,826 - Deposits 68,746 - 68,746 - Compensated absences payable 40,471 31,771 72,242 (2,679) Net pension and OPEB liabilities and related deferred inflows and outflows of resources (1,156,427) (831,664) (1,988,091) - NET CASH FROM OPERATING ACTIVITIES 9,352,339$ 2,025,018$ 11,377,357$ 415,356$ Business-Type Activities Town of Estes Park, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 34 Town of Estes Park, Colorado Notes to Financial Statements December 31, 2022 1. Summary of Significant Accounting Policies The Town of Estes Park, Colorado (the Town) is a statutory municipality governed by a town administrator form of government through a Mayor and six-member Board of Trustees elected by the residents at large. The accounting policies of the Town and its component units conform to generally accepted accounting principles as applicable to government entities. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Following is a summary of the more significant policies. Reporting Entity The financial reporting entity consists of the Town, organizations for which the Town is financially accountable, and organizations that raise and hold economic resources for the direct benefit of the Town. All funds, organizations, institutions, agencies, departments and offices that are not legally separate are part of the Town. Legally separate organizations for which the Town is financially accountable are considered part of the reporting entity. Financial accountability exists if the Town appoints a voting majority of the organization's governing board and is able to impose its will on the organization, or if the organization provides benefits to, or imposes financial burdens, on the Town. Based on the application of these criteria, the Town includes the following component units in its financial statements. The Estes Park Local Marketing District (Visit Estes Park) was established by election in November 2008, to assist with the marketing of businesses and activities in the Marketing District's boundaries, which include the Town and the surrounding area. The election allowed Visit Estes Park to assess a 2% marketing and promotion tax on all lodging establishments in the District. Visit Estes Park has a separate Board of Directors with seven members appointed by the Town and Larimer County. Although Visit Estes Park is legally separate from the Town, the financial statements are discretely presented in the Town's reporting entity because Visit Estes Park provides services almost exclusively to the Town, and the Town appoints five members of the Board of Directors. Separately issued financial statements of Visit Estes Park can be obtained from Visit Estes Park at 1230 Big Thompson Ave., P.O. Box 4426, Estes Park, Colorado 80517. Certain disclosures required by generally accepted accounting principles (GAAP) have been omitted from the Town's notes, as they may be viewed by obtaining Visit Estes Park's financial statements as described above. The Estes Park Building Authority (the Building Authority) was formed to provide financing for improvements to the Town-owned golf course. The Estes Valley Recreation and Park District operates the course under a management agreement. The Town Board of Trustees appoints the Directors of the Building Authority. The Building Authority had no financial activity for the year ended December 31, 2022. 35 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 1. Summary of Significant Accounting Policies (continued) Joint Venture - In 1975, the Town joined with the cities of Fort Collins, Longmont, and Loveland to establish the Platte River Power Authority (the Authority), to provide electrical power and energy to the Town and Cities. The Authority is governed by an eight-member Board of Directors. Each participant's governing board appoints two members to the Authority's Board of Directors. The Town has a residual interest in the assets of the Authority that may revert to the Town upon dissolution of the Authority. The Town has no equity interest in the Authority. Complete financial statements of the Authority may be obtained by contacting the Platte River Power Authority at 2000 East Horsetooth Road, Fort Collins, Colorado 80525-2942. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the Town is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of the given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Measurement focus, basis of accounting, and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and pension trust fund financial statements. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current year. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current year. 36 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 1. Summary of Significant Accounting Policies (continued) Taxes, intergovernmental revenues, and interest associated with the current year are considered to be susceptible to accrual and so have been recognized as revenues of the current year. Expenditure-driven grants are recognized when the qualifying expenditures have been incurred and all other eligibility requirements have been met. All other revenues are considered to be measurable and available only when cash is received by the Town. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town's practice to use restricted resources first, then unrestricted resources as they are needed. In the fund financial statements, the Town reports the following major governmental funds: General Fund – The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those accounted for in another fund. Community Reinvestment Fund – This fund was reclassified as a capital projects fund in 2018 from a special revenue fund. The fund accounts for general capital improvements of the Town, including the acquisition, construction, improvement, and maintenance of capital assets. These expenditures are financed by General Fund transfers, intergovernmental grants and debt issuances. Street Improvement Fund – This fund is a special revenue fund created April 2015 by vote of the Board of Trustees. The fund accounts for the restricted 0.60% sales tax approved by voters in 2014. The fund is used for selected street department personnel costs, operations, street repairs; such as chip sealing and crack sealing efforts, street replacement, rehabilitation, and construction within the Town of Estes Park. The Town also reports the following major proprietary funds: The Power and Communications Fund accounts for the financial activities associated with the provision of electric and broadband services. In 2019, the Town passed an ordinance to change the name of this fund from the Light and Power fund to the Power and Communications Fund. The Water Fund accounts for the financial activities associated with the provision of water services. Additionally, the Town reports the following fund types: The Internal Service Funds account for fleet maintenance, vehicle replacement, information technology, medical insurance services and risk management services provided to other departments of the Town on a cost reimbursement basis. 37 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 1. Summary of Significant Accounting Policies (continued) Assets, Liabilities and Net Position/Fund Balance Cash and Investments - Cash equivalents include investments with original maturities of three months or less. Investments in pooled cash are considered cash equivalents. Investments are reported at fair value. Whenever possible, the Town pools cash to enhance investment opportunities and to facilitate management of cash resources. Restricted Cash and Investments - The amounts restricted are in compliance with the debt requirements associated with the Town's long-term debt. Interfund Receivables/Payables - During the course of operations, certain transactions occur between individual funds. The resulting receivables and payables are classified in the fund financial statement as interfund receivables and interfund payables. Any residual balances outstanding between governmental and business-type activities are reported in the government-wide financial statements as internal balances. Inventories - Inventories are valued at cost, using the weighted average unit method. The costs of inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Items - Certain payments to vendors reflect costs applicable to future years and are reported as prepaid items using the consumption method. Capital Assets - Capital assets, which include land, buildings, equipment, and all infrastructure owned by the Town, are reported in the applicable governmental or business- type activities columns in the government-wide financial statements and the proprietary funds in the fund financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of $5,000 or more ($50,000 or more for street, bridge and trail infrastructure) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of arts or similar items, and capital assets received in a service concession arrangement are reported at their acquisition cost at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset life are not capitalized. Capital assets of the Town are depreciated using the straight-line method over the following estimated useful lives. Buildings 30 - 40 years Infrastructure – Collection and Distribution Systems 25 - 50 years Infrastructure – Streets, Bridges and Trails 30 – 40 years Machinery and Equipment 20 - 25 years Vehicles 5 - 10 years Deferred Outflows of Resources - In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is a consumption of net assets by the Town that is applicable to a future reporting period. The Town has two items that qualify as a deferred outflow of resources related to pension liabilities per GASB Statement No. 68 and 75. See Note 8 for additional information. 38 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 1. Summary of Significant Accounting Policies (continued) Unearned Revenues - Unearned revenues arise when resources are received by the Town before it has a legal claim to them or when assets are not available as current financial resources in the governmental funds. In addition, the Town recognizes unearned revenue related to water rates established to support estimated incremental expenses of future scheduled maintenance costs of the Water Fund, consistent with the regulatory provisions of GASB Statement No. 62. At December 31, 2022 the Town reported unearned revenue of $504,191 in governmental funds and $1,815,876 in the enterprise funds. Deferred Inflows of Resources - In addition to liabilities, the statement of net position will sometimes report separate sections for deferred inflows of resources. A deferred inflow of resources is an acquisition of net assets by the Town that is applicable to a future reporting period. The Town has three items that qualify for reporting as deferred inflows of resources. The first type of deferred inflow of resources occurs because governmental fund revenues are not recognized until available (collected not later than 60 days after the end of the Town's year end) under the modified accrual basis of accounting. In the governmental funds, the Town recorded $535,071 of deferred inflows of resources related to unavailable revenue and $888,526 related to property taxes as of December 31, 2022. Finally, a deferred inflow of resources related to the pension and other post-employment benefit amounts per GASB Statement Nos. 68 and 75 have been recorded as of December 31, 2022. See Note 8 for additional information. Deposits - Deposits reported in the General Fund represent customer payments for specific public improvements. The Power and Communications Fund reports deposits received from customers for the construction of electric service facilities at their locations. These deposits are recognized as revenue when the underlying construction is completed. The Power and Communications Fund also includes utility service deposits held as collateral for utility bills. These utility service deposits may be refunded, including accrued interest, at the end of the deposit term if the customer has demonstrated a good payment history. Compensated Absences - Employees of the Town are allowed to accumulate unused vacation and sick time. Upon termination of employment from the Town, an employee will be compensated for all accrued vacation time and, if the employee has completed 20 years of continuous service, will be compensated for 50% of accrued sick time at their current pay rate. These compensated absences are recognized as current salary costs when earned in the proprietary funds and when due in the governmental funds. A long-term liability has been reported in the proprietary funds and government-wide financial statements for the accrued compensated absences. Long-term Obligations - In the government-wide financial statements and the proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Long-term debt is reported net of the applicable premium or discount. Long-term debt issuance costs are expensed when incurred. 39 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 1. Summary of Significant Accounting Policies (continued) Net Position/Fund Balances - In the government-wide and fund financial statements, net position and fund balances are restricted when constraints placed on the use of resources are externally imposed. Committed fund balance represents amounts constrained by the Board of Trustees, which is the highest level of decision-making authority, by formal action (resolution). While there is no formal policy, the Board of Trustees has authorized the Town Administrator or his designee to assign fund balances for specific purposes consistent with the adopted budget. If both restricted and unrestricted fund balances are available, the Town uses restricted fund balance first, followed by committed, assigned and unassigned. As of December 31, 2022, the Town reported the following restrictions in the statement of net position: 1) $1,681,110 restricted for parks and open space, $6,214,132 restricted for future capital improvements and $799,168 restricted for emergencies (see Note 11) reported under governmental activities; and 2) $1,250,000 restricted for operations and maintenance reserves reported under business-type activities. Restricted net position is a result of externally imposed restrictions. Property Taxes Property taxes attach as an enforceable lien on property on January 1, are levied the following December, and collected in the subsequent year. Taxes are payable in full on April 30 or in two installments on the last day of February and June 15. The Larimer County Treasurer's Office collects property taxes and remits to the Town on a monthly basis. Since property taxes are collected in arrears during the succeeding year, a receivable and corresponding deferred inflows of resources are reported at year-end. Contraband forfeitures The Colorado Contraband Forfeiture Act allows law enforcement agencies to retain proceeds from the seizure of contraband. These proceeds are not subject to appropriation in the budget process. Cash proceeds are recorded in the General Fund. Property and equipment seized are recorded as capital assets. Pensions The Town and the discretely presented component unit participate in the Local Government Division Trust Fund ("LGDTF"), a cost-sharing multiple-employer defined benefit pension plan administered by the Public Employees' Retirement Association of Colorado ("PERA"). The net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position of the LGDTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 40 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 1. Summary of Significant Accounting Policies (continued) Other Post-Employment Benefits ("OPEB") The Town and the discretely presented component unit participate in the Health Care Trust Fund ("HCTF"), a cost-sharing multiple- employer defined benefit OPEB fund administered by the Public Employees' Retirement Association of Colorado ("PERA"). The net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, OPEB expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position of the HCTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefits paid on behalf of health care participants are recognized when due and/or payable in accordance with the benefit terms. Investments are reported at fair value. The Town also provides post-employment medical insurance premium assistance to all active and retired employees under the Retiree Medical Insurance Plan (the "Plan"). The Plan is a single- employer defined benefit OPEB plan administered by the Town. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. New Accounting Pronouncements: The Town implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases effective January 1, 2022. GASB Statement No. 87 enhances the relevance and consistency of information of the government’s leasing activities. It establishes requirements for lease accounting based on the principle that leases are financings of the right to use an underlying asset. A lessor is required to recognize a lease receivable and a deferred inflow of resources. These changes were incorporated in the Town’s 2022 financial statements. The implementation of GASB Statement No. 87 had no effect on net position as of December 31, 2022. 2. Stewardship, Compliance and Accountability Budgets and Budgetary Accounting Budgets are legally adopted for all funds of the Town. Budgets for the governmental funds are adopted on a basis consistent with GAAP. Budgetary comparisons for the enterprise and internal service funds are presented on a non-GAAP budgetary basis. Capital outlay and debt service principal are budgeted as expenditures and depreciation is not budgeted. The Town follows these procedures in establishing the budgetary data reflected in the financial statements: •Management submits to the Board of Trustees a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them; •Public hearings are conducted to obtain taxpayer comments; •Prior to December 15, the budget is legally enacted through passage of a resolution; •Management is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Board of Trustees; •All budget appropriations lapse at year-end. 41 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 3. Cash and Investments A summary of cash and investments as of December 31, 2022, follows: Town Visit Estes Park Petty Cash $ 4,350 $ - Deposits 6,719,808 2,698,093 Investments 54,511,786 - Total $ 61,235,944 $ 2,698,093 Cash and investments are presented in the government-wide financial statements as follows: Town Visit Estes Park Cash and investments $ 59,246,948 $ 2,698,093 Restricted cash and investments 1,988,996 - Total $ 61,235,944 $ 2,698,093 Bank Deposits The Colorado Public Deposit Protection Act (PDPA) requires all local government entities to deposit cash in eligible public depositories. Eligibility is determined by State regulations. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. The PDPA allows the financial institution 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 uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2022, the Town and Visit Estes Park bank deposits had carrying values of $7,872,313 and $2,701,069, respectively. Deposits collateralized under the PDPA are considered collateralized with securities held by the pledging financial institution's trust department or agent in the Town's or Visit Estes Park's name, because the collateral pool meets the "held in name of the government" criterion Investments The Town is required to comply with State statutes which specify investments meeting defined rating, maturity, and concentration risk criteria in which local governments may invest, which include the following (listed below). State statutes do not address custodial risk. The Town’s investment policy does not further limit these investment choices. Colorado statutes specify in which instruments the local government may invest, which include: 1.Repurchase agreements in obligations of the United States; 2.Obligations of the United States or obligations unconditionally guaranteed by the United States; 3.General obligation or revenue bonds of any state, District of Columbia, US territory or any of their subdivisions, with certain limitations; 42 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 3. Cash and Investments (continued) 4.Bankers acceptance issued by a state or national bank, with certain limitations; 5.Commercial paper, with certain limitations; 6.Any obligation, certificate of participation or lease/purchase of the investing public entity; 7.Money market funds, with certain limitations, which invest in the types of securities listed above; 8.Guaranteed investment contracts, with other certain limitations; 9.Participation with other local governments in pooled investment funds (trusts). These trusts are supervised by participating governments, and must comply with the same restrictions on cash deposits and investments. These trusts are "Colotrust" and "CSAFE". At December 31, 2022, the Town had the following investments reported as cash and cash equivalents: Investment Maturities (in Years) Investment Type Rating Less than 1 1 to 5 Fair Value Local Government Investment Pools AAAm $ 35,093,849 $ -$ 35,093,849 Corporate bonds 532,237 630,218 1,162,455 Government agencies AA+ 2,072,855 4,059,871 6,132,726 Government bonds AA+ 4,062,918 8,059,838 12,122,756 Total $ 41,761,859 $ 12,749,927 $ 54,511,786 Interest Rate Risk- State statutes limit investments in U.S. Treasury and Agency securities to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. Credit Risk - State statutes limit investments in U.S. Agency securities to the highest rating issued by two or more nationally recognized statistical rating organizations (NRSROs). State statutes also limit investments in money market funds to those that maintain a constant share price, with a maximum remaining maturity in accordance with Rule 2a-7, and either have assets of one billion dollars or the highest rating issued by a NRSRO. Concentration of Credit Risk- State statutes do not limit the amount the Town may invest in one issuer. The Town's concentration of credit risk that exceed 5% is shown below as of December 31, 2022. Percentages are based on the Town's total investments. Investment Type Concentration of C redit Risk Local Government Investment Pools 64.37% Corporate Bonds 2.14% Government Agencies 11.25% Government Bonds 22.24% 43 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 3. Cash and Investments (continued) Fair Value The Town categorizes its fair value measurements within the fair value hierarchy established by the generally accepted accounting principles (GAAP). The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Investment balances at December 31, 2022 were as follows: Investments Level 1 Level 2 Level 3 Total Government agencies $ 6,132,726 $ -$-$ 6,132,726 Corporate b onds - 1,162,455 - 1,162,455 Government bonds -12,122,756 -12,122,756 Total $ 6,132,726 $ 13,290,986 $ -19,417,937 Local government investment pool measured at NAV 23,934,025 Local government investment pool measured at amortized cost 11,159,824 Total $ 54,511,786 Securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities or offer same day liquidity at a price of par. Securities classified in Level 2 are valued using inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. The Town's securities in Level 2 are valued using matrix pricing and various relational pricing model techniques. As of December 31, 2022, the Town had invested $14,337,516 in the Colorado Local Government Liquid Asset Trust (COLOTRUST) (the Trust), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commission administers and enforces all State statutes governing the Trust. The Trust operates similarly to a money market fund and each share has a constant net asset value. The Trust offers shares in three portfolios, COLOTRUST PRIME, COLOTRUST PLUS+, and COLOTRUST EDGE. These portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. COLOTRUST PLUS+ may also invest in certain obligations of U.S. Government agencies, highest rated commercial paper and any security allowed under CRS 24-75-601. A designated custodial bank serves as custodian for the Trust's portfolios pursuant to a custodian agreement. The custodian acts as the 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. COLOTRUST is rated AAAm by Standard & Poor's and is measured at net asset value (NAV). There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. 44 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 3. Cash and Investments (continued) As of December 31, 2022, the Town had invested $11,159,824 in the Colorado Surplus Asset Fund Trust (CSAFE), 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. The Trust operated similarly to a money market fund and each share has a constant net asset value. The Trust is rated AAAM by Standard & Poor's and is valued at amortized cost. Based on the valuation method, additional disclosures are not required under GASB Statement No. 72. As of December 31, 2022, the Town had $8,154,089 invested in Colorado Statewide Investment Program (CSIP), an investment vehicle established for local government entities in Colorado to pool surplus funds for investment purposes. CSIP is a highly liquid fund operating similarly to a money market-like fund and each share is equal in value to $1.00. CSIP measures all of its investment at net asset value in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. CSIP invests primarily in United States Treasuries, United States Agencies, Primary Dealer Repurchase Agreements, highly rated commercial paper, AAAm rated money market funds, highly rated corporate bonds and Colorado Depositories. CSIP is rated AAAm by Standard & Poor's. 4. Capital Assets Capital asset activity for the year ended December 31, 2022 is summarized below: Balance Balance December 31,Transfers/ Transfers/December 31, 2021 Additions Retirements 2022 Governmental Activities Capital assets, not being depreciated : Land held for preservation 6,288,911$ -$ -$ 6,288,911$ Construction in Progress 4,770,928 2,048,670 (50,257) 6,769,341 Total capital assets, not being depreciated 11,059,839 2,048,670 (50,257) 13,058,252 Capital assets, being depreciated: Buildings 23,275,129 465,645 - 23,740,774 Infrastructure 139,214,124 951,868 - 140,165,992 Machinery and Equipment 8,933,866 1,146,070 (336,232) 9,743,704 Total capital assets, being depreciated 171,423,119 2,563,583 (336,232) 173,650,470 Less accumulated depreciation: Buildings (11,947,298) (841,172) - (12,788,470) I nfrastructure (96,014,568) (2,546,314) - (98,560,882) Machinery and Equipment (6,113,190) (699,012) 329,294 (6,482,908) Total Accumulated Depreciation (114,075,055) (4,086,498) 329,294 (117,832,260) Total capital assets, being depreciated , net 57,348,064 (1,522,915) (6,938) 55,818,211 Total governmental activities capital assets, net 68,407,903$ 525,755$ (57,195)$ 68,876,463$ 45 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 4. Capital Assets (continued) Balance Balance December 31,Transfers/ Transfers/December 31, 2021 Additions Retirements 2022 Business-Type Activities Capital assets, not being depreciated : Land and easements 4,266,517$ 5,122$ -$ 4,271,639$ Construction in progress 20,104,392 8,243,208 (1,396,725) 26,950,875 Total capital assets, not being depreciated 24,370,909 8,248,330 (1,396,725) 31,222,514 Capital assets, being depreciated: Buildings 12,898,555 - (372,907) 12,525,648 Infrastructure 46,073,840 2,160,463 - 48,234,303 Machinery and Equipment 21,865,764 779,244 (104,138) 22,540,870 Total capital assets, being depreciated 80,838,159 2,939,707 (477,045) 83,300,821 Less accumulated depreciation: Buildings (4,878,020) (334,379) 200,999 (5,011,400) Infrastructure (18,124,807) (1,037,925) - (19,162,732) Machinery and Equipment (12,271,123) (1,015,323) 80,685 (13,205,761) Total Accumulated Depreciation (35,273,950) (2,387,627) 281,684 (37,379,893) Total capital assets, being depreciated , net 45,564,209 552,080 (195,361) 45,920,928 Total business-type activities capital assets, net 69,935,118$ 8,800,411$ (1,592,086)$ 77,143,442$ Depreciation expense was charged to governmental programs of the Town as follows: Governmental Activities General Government 544,372$ Public Safety 101,216 Public Works 3,038,868 Culture and Recreation 402,042 Total 4,086,498$ Business-Type Activities Power and Communications 1,432,792$ Water 954,835 Total 2,387,627$ 46 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt Governmental Activities Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2022. December 31, December 31, Within 2021 Additions Payments 2022 One Year Governmental activities: Certificates of participation 2,860,000$ -$ (450,000)$ 2,410,000$ 460,000$ Lease purchase agreement 3,317,520 - (253,463) 3,064,057 264,997 Radio Equipment Lease Purchase 170,423 - (39,937) 130,486 41,933 Premium lease purchase 120,255 -(20,893)99,362 19,379 Total direct placements 6,468,198$ -$ (764,293)$ 5,703,905$ 786,309$ Environmental remediation 89,198$ -$ (4,965)$ 84,233$ 5,500$ Compensated Absences 855,329 805,282 (860,592) 800,019 497,574 Total other long-term liabilities 944,527$ 805,282$ (865,557)$ 884,252$ 503,074$ Total 7,412,725$ 805,282$ (1,629,850)$ 6,588,157$ 1,289,383$ Compensated absences and postemployment benefits are expected to be liquidated primarily with revenues of the General Fund. Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2022. Balance at Balance at Due December 31, December 31, Within 2021 Additions Payments 2022 One Year Business-type activities: 2019A Power and Comm Rev Bonds 22,220,000$ -$ (400,000)$ 21,820,000$ 435,000$ 2019A Power and Comm Rev Bonds Premium 3,108,754 - (233,433) 2,875,321 231,303 2019B Taxable Power and Comm Rev Bonds 7,050,000 - - 7,050,000 820,000 Total bonded debt 32,378,754$ -$ (633,433)$ 31,745,321$ 1,486,303$ 2008A Water Loan 2,338,529$ -$ (300,830)$ 2,037,699$ 306,506$ 2019 Radio Equipment Lease 66,760 - (14,735) 52,025 15,499 2020 USDA Loan 530,332 - (13,236) 517,096 13,537 2019 Radio Equipment Lease Purchase (503)8,547 - (2,315) 6,232 2,421 2022 Construction Loan -54,376 -54,376 - Total direct placements 2,944,168$ 54,376$ (331,116)$ 2,667,428$ 337,963$ Compensated Ab sences 414,575$ 523,003$ (450,762)$ 486,816$ 308,292$ Total other long-term liabilities 414,575$ 523,003$ (450,762)$ 486,816$ 308,292$ Total 35,737,497$ 577,379$ (1,415,311)$ 34,899,565$ 2,132,558$ 47 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) The Refunding and Improvement Power and Communications Revenue Bonds, Series 2019A were issued to advance refund the 2007 Light and Power Bond and to finance the Electric SmartGrid and Broadband projects. Principal payments are due annually on November 1 through 2039. Interest payments are due semi-annually on May 1 and November and interest rates vary from 3.0 to 5.0% The Power and Communications Revenue Bonds, Series 2019B, were issued to finance Power and Communications projects. Principal payments are due annually on November 1 starting in 2023 through 2029. Interest payments are due semi-annually on May 1 and November and interest rates vary from 2.362 to 2.988%. The following are considered to be events of default under these bond agreements: (a) Payment of the principal of any bond is not made when the same becomes due and payable; (b) Payment of any installment of interest on any bond is not made when the same becomes due and payable; (c) The Town, for any reason becomes incapable of fulfilling its obligations under the Bond Ordinance; (d) The Town shall have failed to carry out and to perform (or in good faith to begin the performance of) all acts and things lawfully required to be carried out or to be performed by it under any contract relating to the Revenue or to the Light and Power Facilities, the Communications Facilities or otherwise, and such failure shall continue for 60 days after receipt of notice from the registered owners of 25% in aggregate principal amount of the bonds then outstanding; provided that if such failure cannot be cured within such 60 days and if during that period corrective action has commenced to remedy such failure and subsequently is diligently pursued by the Town to the completion of such performance, an event of default shall not be deemed to have occurred; (e) The Town discontinues or unreasonably delays or fails to carry out with reasonable dispatch the reconstruction of any essential part of the Light and Power Facilities or the Communications Facilities which is condemned, destroyed or damaged and is not promptly repaired or replaced (whether such failure to repair the same is due to impracticality of such repair or replacement, or is due to a lack of moneys therefor, or for other reason); (f) An order or decree is entered by a court of competent jurisdiction, with the consent or acquiescence of the Town, appointing a receiver or receivers for the Light and Power Facilities or the Communications Facilities or for the Revenue and any other moneys subject to the lien to secure the payment of the Bonds, or if any order or decree, having been entered without the consent or acquiescence of the Town is not vacated or discharged or stayed on appeal within 60 days after entry; or (g) The Town defaults in the due and punctual performance of any other of the representations, covenants, conditions, agreements and other provisions contained in the bonds or the Bond Ordinance on its part to be performed, and if such default continues for 60 days after written notice, specifying such default and requiring the same to be remedied, is given to the Town by the registered owners of 25% in aggregate principal amount of the Bonds then outstanding; provided that if such failure cannot be cured within such 60 days and if during that period corrective action has commenced to remedy 48 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) such default and subsequently is diligently pursued to the completion of such performance, an event of default shall not be deemed to have occurred. In the event of default, the registered owners of not less than 25% in aggregate principal amount of the bonds outstanding may initiate legal proceedings to enforce their rights under the Bond Ordinance. The annual debt service requirements for the outstanding bonds at December 31, 2022 are as follows: Year ending December 31, Principal Interest Total 2023 1,255,000$ 1,123,110$ 2,378,110$ 2024 1,295,000 1,081,992 2,376,992 2025 1,340,000 1,039,241 2,379,241 2026 1,385,000 991,805 2,376,805 2027 1,425,000 952,503 2,377,503 2028-2032 7,900,000 3,987,755 11,887,755 2033-2037 9,790,000 2,101,800 11,891,800 2038-2039 4,480,000 270,600 4,750,600 Total 28,870,000$ 11,548,806$ 40,418,806$ The 2008 Water Loan from the Colorado Water Resources and Power Development Authority was obtained to finance a membrane filter and increase capacity at the Mary’s Lake Water Treatment Plant. Principal and Interest payments are due semi-annually on February 1 and August 1 through 2028. Interest accrues at 3.26% per annum. The following are considered to be events of default under the loan agreement: (a)failure by the Town to pay or cause to be paid any amounts required to be paid when due, which failure shall continue for a period of ten days; (b)failure by the Town to make or cause to be made any required payments of principal of redemption premium if any and interest on any bonds notes or other obligations for borrowed money, after giving effect to the applicable grace period, the payments of which are secured by pledged property; (c)failure by the Town to pay or cause to be paid the Administrative Fee or any portion thereof when due or to observe and perform any duty covenant obligation or agreement on its part to be observed or performed under the loan agreement and other than a failure to comply with the provisions of the loan agreement, which failure shall continue for a period of thirty days after written notice specifying such failure and requesting that it be remedied is given to the Town by the Trustee; (d)a petition is filed by or against the Town under any federal or state bankruptcy or insolvency law or other similar law in effect on the date of the loan agreement or thereafter enacted unless in the case of any such petition filed against the Town such petition shall be dismissed within thirty days after such filing and such dismissal shall be final and not subject to appeal or the Town shall become insolvent or bankrupt or make an assignment for the benefit of its creditors or a custodian including without limitation a receiver liquidator or trustee of the Town or any of its property shall be 49 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) appointed by court order to take possession of the Town or its property or assets if such order remains in effect or such possession continues for more than thirty days. In the event of default, the lender may initiate legal proceedings to enforce their rights under the loan agreement. All income derived from the operations of the water facilities must be sufficient to pay: a) all Operating Expenses during the fiscal year; and b) 110% of the debt service due during the fiscal year. During the year ended December 31, 2022, revenues of $6,716,931 were available to pay 110% of annual debt service of $443,397 and operating expenses of $4,009,458. Annual debt service requirements for the outstanding Water Loan at December 31, 2022 are as follows: Year ending December 31, Principal Interest Total 2023 306,506$ 98,234$ 404,740$ 2024 306,506 89,309 395,815 2025 329,211 70,791 400,002 2026 346,239 55,301 401,540 2027 363,267 39,613 402,880 2028 385,970 17,234 403,204 Total 2,037,699$ 370,482$ 2,408,181$ Effective January 1, 2019, the Town entered into a capital lease obligation in the amount of $419,293 for the lease of radio equipment. The lease requires annual principal and interest payments of $69,348, with interest at 5.030%. The gross carrying amount of the assets was $433,758 with current year depreciation of $61,991. The following are events of default under this agreement: (i) failure to make any lease payment (or any other payment) as it becomes due in accordance with the terms of the lease when funds have been appropriated sufficient for such purpose, and any such failure continues for ten (10) days after the due date thereof; (ii) failure to perform or observe any other covenant, condition, or agreement to be performed or observed by it hereunder and such failure is not cured within twenty (20) days after written notice thereof by the lessor; (iii) the discovery by lessor that any statement, representation, or warranty made by the Town in the lease or in writing delivered by lessee is false, misleading or erroneous in any material respect; (iv) proceedings under any bankruptcy, insolvency, reorganization or similar legislation shall be instituted against or by the lessee, or a receiver or similar officer shall be appointed for lessee or any of its property, and such proceedings or appointments shall not be vacated, or fully stayed, within twenty (20) days after the institution or occurrence thereof; or (v) an attachment, levy or execution is threatened or levied upon or against the equipment. In the event of default, the lessor may, at its option: (i) declare all amounts due under the lease; (ii) request the Town to discontinue use of the equipment; (iii) sell or lease the equipment; (iv) request the return of the equipment to the lessor; or (v) exercise any other right available under law. 50 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) Annual debt service requirements for the outstanding lease obligation at December 31, 2022 are as follows: Year ending December 31, Principal Interest Total 2023 59,854$ 9,557$ 69,411$ 2024 62,864 6,526 69,390 2025 66,025 2,548 68,573 Total 188,743$ 18,631$ 207,374$ On May 30, 2013, the Town issued Certificates of Participation, Series 2013, in the amount of $6,075,000, for the purpose of financing construction of a multi-purpose events center and new stall barns at the Stanley Park Fairgrounds complex. The certificates are subject to mandatory sinking fund redemption prior to maturity of December 1, 2027. Payments of principal are due annually on December 1, through 2027. Interest accrues at a rate of 2.430% and is payable semiannually on June 1 and December 1. The following are events of default under this agreement: (i)failure by the Town to pay any amounts due during the term of the agreement within five days following the due date; (ii)failure by the Town to vacate the underlying property by the specified date in an event of Nonappropriation; (iii)any sublease, assignment, encumbrance, conveyance or other transfer of the interest of the Town in all or any portion of the underlying property, in violation of terms of the agreement (iv)failure by the Town to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as excluded by the agreement, for a period of 30 days after written notice; or (v)the Town files a petition or application seeking reorganization or protection under federal bankruptcy law or for other debtor relief under the laws of the State or a receiver is appointed for all or any material portion of the Town's assets or revenues or the Town is the subject of such a petition or application which is not contested by the Town or otherwise dismissed, vacated, discharged or stayed within 60 days. In the event of default, the trustee has the right to terminate the agreement, request the Town to vacate the underlying property and sell or assign it interest in the agreement. They may also recover any unpaid amounts and take any additional action allowed by law. 51 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) Annual debt service requirements for the outstanding Certificates of Participation at December 31, 2022 are as follows: Year ending December 31, Principal Interest Total 2023 460,000$ 59,103$ 519,103$ 2024 470,000 47,385 517,385 2025 480,000 35,964 515,964 2026 495,000 24,300 519,300 2027 505,000 12,272 517,272 Total 2,410,000$ 179,024$ 2,589,024$ On January 1, 2017, the Town entered into a Lease Purchase Agreement commencing on January 23, 2017 and terminating on January 1, 2032 with Saulsbury Hill Financial, LLC. Under the agreement, Saulsbury Hill Financial, LLC will lease real property, including improvements, fixtures and equipment from the Town and provide funds in the aggregate amount of the principal rental payments. Saulsbury Hill Financial, LLC will also lease its interest in the property to the Town for rental payments until termination of the agreement. Upon execution of the Lease Purchase Agreement, $4,497,093 was deposited into a project fund and was fully disbursed at December 31, 2022. The total principal balance on the lease is $3,559,951 at an annual interest rate of 4.5%. A balance of $99,363 remains on the premium. Rental payments are to be made by the Town, semi-annually, in the amount of $199,966. The Town has the option to purchase on any rental payment date beginning January 1, 2022 with payment in full of the rental payments plus the applicable purchase price. The Town may exercise its option to purchase at any time in the event of substantial damage or destruction to the leased property, upon payment in full of rental payments, plus the purchase price. The following are events of default under this agreement: (i)Failure by the Town to make any payments required to be paid at the time specified; (ii)Failure by the Town to observe and perform any covenant, condition or agreement under the agreement on its part to be observed or performed, other than as referred to in the agreement; (iii)Any statement, representation or warranty made by Town in or pursuant to the agreement or any instrument or certificate related thereto or to the project shall be incorrect, untrue or misleading in any material respect; (iv)Any provision of the agreement shall at any time for any reason cease to be valid and binding on the Town, or shall be declared to be null and void, or the validity or enforceability thereof shall be contested by the Town or any governmental agency or authority if the loss of such provision would materially adversely affect the rights or security of the Town, or the Town denies that it has any further liability or obligation under this agreement; or The filing by the Town of a voluntary petition in bankruptcy, or failure by the Town to promptly lift any execution, garnishment or attachment of such consequence as would impair the ability of the Town to carry on its essential functions, or adjudication of the Town as a bankrupt, or assignment for the benefit of creditors, or the entry into an agreement of composition with creditors, or the approval 52 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) by a court of competent jurisdiction of a petition applicable to the Town in any proceedings instituted under the provisions of any applicable federal bankruptcy law. In the event of default, the trustee has the right to terminate the agreement, request the Town to vacate the underlying property and sell or assign it interest in the agreement. They may also recover any unpaid amounts and take any additional action allowed by law. Annual debt service requirements for the outstanding Lease Purchase Agreement at December 31, 2022 are as follows: Year ending December 31, Principal Interest Total 2023 264,998$ 134,935$ 399,933$ 2024 277,056 122,875 399,931 2025 289,664 110,268 399,932 2026 302,846 97,086 399,932 2027 316,627 83,305 399,932 2028-2032 1,612,866 186,827 1,799,693 Total 3,064,057$ 735,296$ 3,799,353$ On July 15, 2020, the Town entered into a loan agreement with the U.S. Department of Agriculture (USDA) in the amount of $658,000, to fund a water project that was completed in 2020. The note bears interest at a rate of 2.25% per annum and requires monthly payments of principal and interest in the amount $2,086, through July 2050. In the event that the Town does not comply with the terms of the USDA loan, the non-compliance would be addressed under the provisions of 7 CFR 1782 and other applicable regulations, statutes and policies. Annual debt service requirements for the USDA loan at December 31, 2022 are as follows: Year ending December 31, Principal Interest Total 2023 13,507$ 11,525$ 25,032$ 2024 13,847 11,185 25,032 2025 14,162 10,870 25,032 2026 14,484 10,548 25,032 2027 14,784 10,248 25,032 2028-2032 79,242 45,918 125,160 2033-2037 88,672 36,488 125,160 2038-2042 99,225 25,935 125,160 2043-2047 111,027 14,133 125,160 2048-2050 68,145 2,233 70,378 Total 517,095$ 179,083$ 696,178$ 53 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 5. Long-Term Debt (continued) On October 11, 2022, the Town entered into a construction loan agreement with a commercial lender in the amount drawn on the loan, up to $4,493,000, to fund the upgrade and rebuild of a water distribution system. Upon completion of the project, the USDA has agreed to provide a permanent loan to replace the current loan, for an amount up to $4,493,000. The note bears interest at a variable rate, which is initially set at the Daily Simple Secured Overnight Financing Rate, with semi-annual interest payments due on February 1 and August 1 of each year, beginning February 1, 2023. The note matures on August 1, 2025. Events of default on the loan include events of non-payment of interest and principal, bankruptcy or nonperformance of other covenants, conditions, agreements and provisions of the note. In the event of default, the lender may proceed under the law to enforce or compel performance of the terms of the note. In prior years, the Town was identified as a responsible party in the mitigation of ground water and drainage issues at the Elm Road Landfill. The Town has received a mandated request from the State of Colorado to submit a drainage plan to address the issues. During 2014, the Town contracted with Steward Environmental Consultants, LLC regarding the identified drainage issues and the Town's estimated liability. The Town's estimate was based on a drainage plan of the area and cost estimates for completing the site specific controls necessary. During 2022, the Town made payments in the amount of $4,964 for monitoring costs. As of December 31, 2022, the Town's estimated liability is $84,234 which represents estimated monitoring costs for two fiscal years. This amount has been reported as a long-term liability in the government-wide financial statements. 6. Interfund Transfers Interfund transfers for the year ended December 31, 2022, were comprised of the following: Transfers In Transfers Out Amount General Fund Power and Communications Fund 1,488,000$ General Fund Water Fund 124,752 Community Reinvestment Fund General Fund 6,278,919 Community Reinvestment Fund Vehicle Replacement 17,381 Water Fund Fleet Service 228,091 Fleet Service General Fund 135,000 8,272,143$ Annually, the Power and Communications and Water Funds subsidizes the General Fund out of surplus revenues. The transfer from the General Fund to the Community Reinvestment fund was to move capital project reserves to a capital project fund. The transfer from General fund to the Fleet internal service fund provided funds to purchase a building from the Water Fund. 54 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 7. Notes Receivable Following is a summary of note receivable activity for the business-type activities for the year ended December 31, 2022. Balance at Balance at Due December 31, December 31, Within 2021 Additions Payments 2022 One Year Business-type activities: Notes receivable 327,863$ 1,010,739$ (120,744)$ 1,217,858$ 109,249$ Total 327,863$ 1,010,739$ (120,744)$ 1,217,858$ 109,249$ In February 2019, the Town entered into an agreement with a business to access to the Town’s water system which required payment of system development fees. The agreement totaled $206,050, with a $26,050 up front payment, with the remaining $180,000 to be repaid in annual installments totaling $20,000 per year, plus accrued interest at a rate of 4.0% annually until February 2028. The balance outstanding on this agreement as of December 31, 2022 totaled $120,000. In August 2020, the Town entered into an agreement with a business to expand access to the Town’s water system which required additional system development fees. The agreement totaled $237,414, with a $35,551 credit provided for existing water service, $14,000 assistance from the Town credited to the agreement, and the remaining $187,863 to be repaid in annual installments totaling $21,744 per year beginning in August 2024, plus accrued interest at a rate of 1.75% annually until August 2033. No payments are required from August 2020 to August 2023; however interest accrues on the balance each year. The balance outstanding on this agreement as of December 31, 2022 totaled $191,164. In November 2021, the Town entered into a treated water service agreement with a business which required payment of system development fees. The agreement was effective January 1, 2022 and totaled $1,007,438, with a $100,743 up front payment, and the remaining balance to be repaid in annual installments totaling $116,450 until 2031. Interest accrues annually at 3.0%. The balance outstanding on this agreement as of December 31, 2022 totaled $906,694. 55 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 8. Risk Management Public Entity Risk Pool The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For these risks of loss, the Town is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to State statute. The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverage and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property, which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity, which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity and the Town does not approve its budgets nor does it have the ability to significantly affect the operations of CIRSA. Claims have not exceeded insurance coverage for the previous three years. 9. Defined Benefit Pension Plan Plan description - Eligible employees of the Town are provided with pensions through the Local Government Division Trust Fund (LGDTF)-a cost-sharing multiple-employer defined benefit pension plan administered by PERA. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.copera.org/investments/pera-financial-reports. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. The Trust Fund serves as a defined benefit retirement plan where retirees receive a monthly benefit for their lifetime, and generally, an annual increase each year, as eligible. Members of affiliated employers are eligible to receive a lifetime monthly retirement benefit when certain age and service credit requirements are met. These eligibilities vary by the membership date and consider credited service at key dates. 56 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) The benefits are based upon a defined or fixed multiplier, age, years of credited service, and highest average salary (HAS). For most employees, HAS, as of December 31, 2021, is one-twelfth of the average of the highest annual salaries that are associated with three periods (five periods, under certain circumstances) of 12 consecutive months under PERA-covered employment. The basic retirement benefit equals 2.5% x HAS x Years of Service. If a member reaches early retirement eligibility and wishes to begin benefit payments prior to achieving the full retirement requirements, then the monthly amount is reduced to consider the early receipt of monthly payments. Alternatively, if greater, a lifetime benefit is available that is calculated by annuitizing the member’s account. At benefit commencement, the member can choose from different payment options, some of which can continue after the retiree’s death to a named beneficiary, and for which the benefit amount is appropriately adjusted. In addition to retirement benefits, the Trust Fund provides refund opportunities with matching employer dollars, if eligible, when leaving covered employment, and disability retirement and survivor benefits for those meeting certain criteria. Employers are required to contribute to the Trust Fund at a rate set by Colorado statute. The contribution requirements are established under C.R.S. § 24-51-401, et seq. The employer contribution requirements are summarized in the table below: January 1, 2022 Through June 30, 2022 July 1, 2022 thru December 31, 2022 Employer contribution rate 10.50% 11.00% Amount of employer contribution apportioned to the Health Care Trust Fund as specified in C.R.S. § 24-51-208(1)(f) (1.02%) (1.02% ) Amount apportioned to the LGDTF 9.48%9.98% Amortization Equalization Disbursement (AED) as specified in C.R.S. §24-51-411 2.20%2.20% Supplemental Amortization Equalization Disbursement (SAED) as specified in C.R.S. § 24-51-411 1.50%1.50% Defined Contribution Supplement as specified in C.R.S. § 24-51-415 0.03%0.03% Total employer contribution rate to the LGDTF 13.21%13.71% *Rates are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42) 57 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) Employer contributions are recognized by the LGDTF in the period in which the compensation becomes payable to the member and the Town is statutorily committed to pay the contributions to the LGDTF. Employer contributions recognized by the LGDTF from the Town and Visit Estes Park for the year ended December 31, 2022 were as follows: Contributions Primary Government Governmental Activities $ 645,443 Power and Communications Fund 449,390 Water Fund 192,449 Total primary government $ 1,287,282 Component Unit $ 120,964 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2022, the Town and Visit Estes Park reported a net pension asset as follows: Net Pension Liability (Asset) Primary Government Governmental Activities $ (534,743) Power and Communications Fund (349,324) Water Fund (155,279) Total primary government $ (1,039,346) Component Unit $ (88,592) The net pension liability for the LGDTF was measured as of December 31, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2020. Standard update procedures were used to roll- forward the total pension liability to December 31, 2021. The Town and Visit Estes Park's proportion of the net pension liability was based on The Town and Visit Estes Park's contributions to the LGDTF for the calendar year 2021 relative to the total contributions of participating employers to the LGDTF. For the plan year end, the proportionate share of the net pension liability is as follows: December 31, 2022 December 31, 2021 Change Primary Government Governmental Activities 0.624% 0.607% 0.017% Power and Communications Fund 0.407% 0.388% 0.019% Water Fund 0.181% 0.202% (0.021)% Total primary government 1.212% 1.197% 0.015% Component Unit 0.103% 0.103% 0.000% 58 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) For the year ended December 31, 2022, the Town and Visit Estes Park reported pension income and expense as follows: Pension Expense (Income) Primary Government Governmental Activities $ (1,815,020) Power and Communications Fund (1,128,031) Water Fund (770,662) Total primary government $ (3,713,713) Component Unit $ (306,072) At December 31, 2022, the Town and Visit Estes Park reported deferred outflows of resources from the following: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Changes in proportion and differences between Town contributions and proportionate share of contributions 51,633$ 33,730$ 14,993$ 100,356$ Differences between expected and actual experience 26,133 17,072 7,588 50,793 Changes in assumptions or other inputs 181,267 118,413 52,636 352,316 Town contributions subsequent to measurement date 645,443 449,390 192,449 1,287,282 Total deferred outflows of resources 904,476$ 618,605$ 267,666$ 1,790,747$ Visit Estes Park Deferred outflows of resources: Differences between expected and actual experience 4,330$ Changes in assumptions or other inputs 30,031 Contributions subsequent to measurement date 120,965 Total deferred outflows of resources 155,326$ 59 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) At December 31, 2022, the Town and Visit Estes Park reported deferred inflows of resources from the following sources: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Differences between projected and actual earnings on pension plan investments 4,625,634$ 3,021,726$ 1,343,191$ 8,990,551$ Differences between expected and actual experience 8,931 5,834 2,593 17,358 Total deferred inflows of resources 4,634,565$ 3,027,560$ 1,345,784$ 9,007,909$ Component unit Visit Estes Park Deferred inflows of resources: Differences between projected and actual earnings on pension plan investments 766,340$ Differences between expected and actual experience 1,480 Changes in proportion and differences between contributions and proportionate share of contributions 4,198 Total deferred inflows of resources 772,018$ The amounts above reported in governmental activities, Power and Communications Fund, the Water Fund and Visit Estes Park as deferred outflow of resources related to pensions, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Within the governmental funds, the general fund is typically used to liquidate pension (assets)/ liabilities. 60 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) Other amounts related to pensions will be recognized in pension expense as follows: Primary Government Governmental Activities Power and Communications Fund Water Fund Total 2023 (951,402)$ (621,509)$ (276,267)$ (1,849,178)$ 2024 (1,746,761) (1,141,081) (507,223) (3,395,066) 2025 (1,116,065) (729,076) (324,082) (2,169,223) 2026 (561,305) (366,678) (162,993) (1,090,976) Total (4,375,534)$ (2,858,344)$ (1,270,566)$ (8,504,444)$ Component Unit Visit Estes Park 2023 (169,778)$ 2024 (289,986) 2025 (184,901) 2026 (92,992) Total (737,657)$ Actuarial assumptions. The total pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial cost method, actuarial assumptions and other inputs: Actuarial cost method Entry age Price inflation 2.30 percent Real wage growth 0.70 percent Wage inflation 3.00 percent Salary increases, including wage inflation 3.20 – 11.30 percent Long-term investment rate of return, net of pension plan investment expenses, including price inflation 7.25 percent Discount rate 7.25 percent Post-retirement benefit increases: PERA benefit structure hired prior to 1/07; and DPS benefit structure (automatic) annually PERA benefit structure hired after 12/31/06 (ad hoc, substantively automatic) 1.00 percent Financed by the Annual Increase Reserve 61 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) The actuarial assumptions used in the December 31, 2020, valuations were based on the 2020 experience analysis, dated October 28, 2020, for the period January 1, 2016, through December 31, 2019. Revised economic and demographic assumptions were adopted by PERA's Board on November 20, 2020. The mortality tables described below are generational mortality tables developed on a benefit- weighted basis. Pre-retirement mortality assumptions for members other than State Troopers were based upon the PubG-2010 Employee Table with generational projection using scale MP-2019. Post- retirement non-disabled mortality assumptions for members other than State Troopers were based upon the PubG-2010 Healthy Retiree Table, adjusted as follows: • Males: 94% of the rates prior to age 80 and 90% of the rates for ages 80 and older, with generational projection using scale MP-2019. • Females: 87% of the rates prior to age 80 and 107% of the rates for ages 80 and older, with generational projection using scale MP-2019. Disabled mortality assumptions for members other than State Troopers were based upon the PubNS- 2010 Disabled Retiree Table using 99% of the rates for all ages with generational projection using scale MP-2019. The long-term expected return on plan assets is reviewed as part of regular experience studies prepared every four or five years for PERA. Recently, this assumption has been reviewed more frequently. The most recent analyses were outlined in presentations to PERA's Board on October 28, 2020. Several factors were considered in evaluating the long-term rate of return assumption for the LGDTF, including long-term historical data, estimates inherent in current market data, and a log- normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. As of the most recent adoption of the long-term expected rate of return by the PERA Board, the target asset allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation 30 Year Expected Geometric Real Rate of Return Global Equity 54.00% 5.60% Fixed Income 23.00% 1.30% Private Equity 8.50% 7.10% Real Estate 8.50% 4.40% Alternatives 6.00% 4.70% Total 100.00% 62 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long-term expected rate of return assumption of 7.25 percent. Discount rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate applied the actuarial cost method and assumptions shown above. In addition, the following methods and assumptions were used in the projection of cash flows: •Total covered payroll for the initial projection year consists of the covered payroll of the active membership present on the valuation date and the covered payroll of future plan members assumed to be hired during the year. In subsequent projection years, total covered payroll was assumed to increase annually at a rate of 3.00% •Employee contributions were assumed to be made at the member contribution rates in effect for each year, including the required adjustments resulting from the 2018 AAP assessment, and the additional 0.50%, resulting from the 2020 AAP assessment, statutorily recognized July 1, 2021, and effective July 1, 2022. Employee contributions for future plan members were used to reduce the estimated amount of total service costs for future plan members. •Employer contributions were assumed to be made at rates equal to the fixed statutory rates specified in law for each year, including the required adjustments resulting from the 2018 AAP assessment, and the additional 0.50%, resulting from the 2020 AAP assessment, statutorily recognized July 1, 2021, and effective July 1, 2022. Employer contributions also include current and estimated future AED and SAED, until the actuarial value funding ratio reaches 103%, at which point the AED and SAED will each drop 0.50% every year until they are zero. Additionally, estimated employer contributions reflect reductions for the funding of the AIR and retiree healthcare benefits. For future plan members, employer contributions were further reduced by the estimated amount of total service costs for future plan members not financed by their member contributions. •Employer contributions and the amount of total service costs for future plan members were based upon a process to estimate future actuarially determined contributions assuming an analogous future plan member growth rate. •The AIR balance was excluded from the initial FNP, as, per statute, AIR amounts cannot be used to pay benefits until transferred to either the retirement benefits reserve or the survivor benefits reserve, as appropriate. AIR transfers to the FNP position and the subsequent AIR benefit payments were estimated and included in the projections. Benefit payments and contributions were assumed to be made at the middle of the year. •The projected benefit payments reflect the lowered annual increase cap, from 1.25% to 1.00%, resulting from the 2020 AAP assessment, statutorily recognized July 1, 2021, and effective July 1, 2022. •Benefit payments and contributions were assumed to be made at the middle of the year. 63 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 9. Defined Benefit Pension Plan (continued) Based on the above assumptions and methods, LGDTF's fiduciary net position was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25 percent on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25 percent. There was no change in the discount rate from the prior measurement date. Sensitivity of the Town's proportionate share of the net pension asset to changes in the discount rate. The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.25 percent, as well as what the proportionate share of the net pension asset would be if it were calculated using a discount rate that is 1- percentage-point lower (6.25 percent) or 1- percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Current 1% Increase (8.25%) Primary government 7,126,365$ (1,039,346)$ (7,869,607)$ Component unit 607,440$ (88,592)$ (670,793)$ Pension plan fiduciary net position. Detailed information about the LGDTF's fiduciary net position is available in PERA's annual comprehensive financial report which can be obtained at www.copera.org/investments/pera-financial-reports. 10. Defined Contribution Plan Management Employees and Police Money Purchase Pension Plans The Town contributes to a single-employer defined contribution money purchase pension plan on behalf of management employees and to a similar plan for police officers. The contribution requirements of Plan participants and the Town are established and may be amended by the Town's Board of Trustees. Management Employees Plan - Management employees are eligible to participate in the Plan. The Plan is administered by the International Town/County Management Association (ICMA). The Town is required to contribute 13.7% of each participant's covered salary to the Plan, and employees must contribute 8% of covered salary. During the year ended December 31, 2022, the Town and employee contributions were $77,040 and $46,449, respectively, equal to the required contributions. Police Plan - All sworn police employees shall be eligible to participate in the Plan administered by ICMA. The Town is required to contribute 13.7% of each participating employee 's covered salary, and each employee must contribute 8% of covered salary. During the year ended December 31, 2022, the Town and employee contributions were $376,630 and $227,516, respectively, equal to the required contributions. 64 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits OPEB Liabilities, and Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2022, the Town and Visit Estes Park reported the following amounts related to other post-employment retirement benefits. These plans are described in further detail in the following notes. HCTF RMIP Total HCTF RMIP Total HCTF RMIP Total Primary Government Governmental Activities $412,562 305,944$ 718,506$ $ 85,296 48,894$ 134,190$ 145,740$ 37,828$ 183,568$ Power and Communications Fund 269,512 139,677 409,189 57,787 22,321 80,108 95,207 17,270 112,477 Water Fund 119,800 63,777 183,577 25,143 10,193 35,336 42,320 7,885 50,205 Total primary government $801,874 $ 509,398 $1,311,272 $ 168,226 $ 81,408 $ 249,634 $ 283,267 $ 62,983 $ 346,250 Component Unit $69,266 $0 $69,266 $31,940 $0 $31,940 $24,470 $0 $24,470 Net OPEB Liability Deferred Outflows of Resources Deferred Inflows of Resources Multiple-Employer Defined Benefit Plan Plan Description - Eligible employees of the Town are provided with OPEB through the HCTF- a cost-sharing multiple-employer defined benefit OPEB plan administered by PERA. The HCTF is established under Title 24, Article 51, Part 12 of the Colorado Revised Statutes (C.R.S.), as amended. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. Title 24, Article 51, Part 12 of the C.R.S., as amended, sets forth a framework that grants authority to the PERA Board to contract, self-insure, and authorize disbursements necessary in order to carry out the purposes of the PERACare program, including the administration of the premium subsidies. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available annual comprehensive financial report that can be obtained at www.copera.org/investments/pera- financial-reports. Benefits provided. The HCTF provides a health care premium subsidy to eligible participating PERA benefit recipients and retirees who choose to enroll in one of the PERA health care plans, however, the subsidy is not available if only enrolled in the dental and/or vision plan(s). The health care premium subsidy is based upon the benefit structure under which the member retires and the member's years of service credit. For members who retire having service credit with employers in the Denver Public Schools (DPS) Division and one or more of the other four Divisions (State, School, Local Government and Judicial), the premium subsidy is allocated between the HCTF and the Denver Public Schools Health Care Trust Fund (DPS HCTF). The basis for the amount of the premium subsidy funded by each trust fund is the percentage of the member contribution account balance from each division as it relates to the total member contribution account balance from which the retirement benefit is paid. C.R.S. § 24-51-1202 et seq. specifies the eligibility for enrollment in the health care plans offered by PERA and the amount of the premium subsidy. The law governing a benefit recipient's eligibility for the subsidy and the amount of the subsidy differs slightly depending under which benefit structure the benefits are calculated. 65 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) All benefit recipients under the PERA benefit structure and all retirees under the DPS benefit structure are eligible for a premium subsidy, if enrolled in a health care plan under PERACare. Upon the death of a DPS benefit structure retiree, no further subsidy is paid. Enrollment in the PERACare is voluntary and is available to benefit recipients and their eligible dependents, certain surviving spouses, and divorced spouses and guardians, among others. Eligible benefit recipients may enroll into the program upon retirement, upon the occurrence of certain life events, or on an annual basis during an open enrollment period. PERA Benefit Structure. The maximum service-based premium subsidy is $230 per month for benefit recipients who are under 65 years of age and who are not entitled to Medicare; the maximum service-based subsidy is $115 per month for benefit recipients who are 65 years of age or older or who are under 65 years of age and entitled to Medicare. The basis for the maximum service-based subsidy, in each case, is for benefit recipients with retirement benefits based on 20 or more years of service credit. There is a 5 percent reduction in the subsidy for each year less than 20. The benefit recipient pays the remaining portion of the premium to the extent the subsidy does not cover the entire amount. For benefit recipients who have not participated in Social Security and who are not otherwise eligible for premium-free Medicare Part A for hospital-related services, C.R.S. § 24-51- 1206(4) provides an additional subsidy. According to the statute, PERA cannot charge premiums to benefit recipients without Medicare Part A that are greater than premiums charged to benefit recipients with Part A for the same plan option, coverage level, and service credit. Currently, for each individual PERACare enrollee, the total premium for Medicare coverage is determined assuming plan participants have both Medicare Part A and Part Sand the difference in premium cost is paid by the HCTF or the DPS HCTF on behalf of benefit recipients not covered by Medicare Part A. Contributions. Pursuant to Title 24, Article 51, Section 208(1)(f) of the C.R.S., as amended, certain contributions are apportioned to the HCTF. PERA-affiliated employers of the State, School, Local Government, and Judicial Divisions are required to contribute at a rate of 1.02 percent of PERA- includable salary into the HCTF. Employer contributions are recognized by the HCTF in the period in which the compensation becomes payable to the member and the Town is statutorily committed to pay the contributions. Employer contributions recognized by the HCTF from the Town were $91,225 for the year ended December 31, 2022. 66 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At December 31, 2022, the Town and Visit Estes Park reported a net OPEB liability as follows: Net OPEB Liability Primary Government Governmental Activities $ 412,562 Power and Communications Fund 269,512 Water Fund 119,800 Total primary government $ 801,874 Component Unit $ 69,266 The net OPEB liability for the HCTF was measured as of December 31, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2020. Standard update procedures were used to roll-forward the total OPEB liability to December 31, 2021. The Town's proportion of the net OPEB liability was based on the Town's contributions to the HCTF for the calendar year 2021 relative to the total contributions of participating employers to the HCTF. At December 31, 2021, the Town's proportion was 0.0930 percent, which was an increase of 0.003 percent from its proportion measured as of December 31, 2020. At December 31, 2021, Visit Estes Park proportion was 0.0080 percent, which was a decrease of 0.0010 from its proportion measured as of December 31, 2020. For the year ended December 31, 2022, the Town recognized OPEB income of $53,923 and Visit Estes Park recognized OPEB income of $2,992. At December 31, 2022, the Town and Visit Estes park reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 67 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Changes in proportion and differences between Town contributions and proportionate share of contributions 28,102$ 18,359$ 8,161$ 54,622$ Differences between expected and actual experience 628 411 183 1,222 Changes in assumptions or other inputs 8,542 5,580 2,480 16,602 Town contributions subsequent to measurement date 48,024 33,437 14,319 95,780 Total deferred outflows of resources 85,296$ 57,787$ 25,143$ 168,226$ Component unit Visit Estes Park Deferred outflows of resources: Changes in proportion and differences between contributions and proportionate share of contributions 21,225$ Differences between expected and actual experience 106 Changes in assumptions or other inputs 1,434 Contributions subsequent to measurement date 9,175 Total deferred outflows of resources 31,940$ 68 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Differences between projected and actual earnings on pension plan investments 25,537$ 16,683$ 7,416$ 49,636$ Changes in assumptions or other inputs 22,380 14,619 6,498 43,497 Differences between expected and actual experience 97,823 63,905 28,406 190,134 Total deferred inflows of resources 145,740$ 95,207$ 42,320$ 283,267$ Component unit Visit Estes Park Deferred inflows of resources: Differences between projected and actual earnings on pension plan investments 4,288$ Changes in assumptions or other inputs 3,757 Differences between expected and actual experience 16,425 Total deferred inflows of resources 24,470$ The above amounts reported in governmental activities, Power and Communications Fund, the Water Fund and Visit Estes Park as deferred outflow of resources related to OPEB, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2023. Within governmental activities, the general fund is typically used to liquidate OPEB liabilities. 69 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Primary Government Governmental Activities Power and Communications Fund Water Fund Total 2023 (27,626)$ (17,626)$ (9,197)$ (54,449)$ 2024 (33,510) (21,380) (11,156) (66,046) 2025 (31,922) (20,367) (10,627) (62,917) 2026 (13,547) (8,643) (4,510) (26,700) 2027 (439) (280) (146)(866) Thereafter 80 51 27 157 Total (106,964)$ (68,247)$ (35,610)$ (210,821)$ Component Unit Visit Estes Park 2023 132$ 2024 375 2025 1,483 2026 (3,367) 2027 (325) Total (1,702)$ Actuarial assumptions. The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the following actuarial cost method, actuarial assumptions and other inputs: Actuarial cost method Entry age Price inflation 2.40 percent Real wage growth 0.70 percent Wage inflation 3.00 percent Salary increases, including wage inflation 3.20 – 11.30 percent Long-term investment rate of return, net of OPEB plan investment expenses, including price inflation 7.25 percent Discount rate 7.25 percent Health care cost trend rates PERA benefit structure: Service-based premium subsidy PERACare Medicare plans Medicare Part A premiums 0.00 percent 4.50 percent in 2021, 6.00 percent in 2022 gradually decreasing to 4.50 percent in 2029 3.75 percent in 2021, gradually rising to 4.50 percent in 2029 70 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) In determining the additional liability for PERACare enrollees who are age sixty- five or older and who are not eligible for premium-free Medicare Part A, the following monthly costs/premiums are assumed for 2020 for the PERA Benefit Structure: Medicare Plan Cost for Members Without Medicare Part A Premiums for Members Without Medicare Part A Medicare Advantage/Self- Insured Prescription $633 $230 Kaiser Permanente Medicare Advantage HMO 596 199 The 2021 Medicare Part A premium is $471 per month. In determining the additional liability for PERACare enrollees in the PERA Benefit Structure who are age sixty-five or older and who are not eligible for premium-free Medicare Part A, the following chart details the initial expected value of Medicare Part A benefits, age adjusted to age 65 for the year following the valuation date: Medicare Plan Cost for Members Without Medicare Part A Medicare Advantage/Self-Insured Prescription $591 Kaiser Permanente Medicare Advantage HMO 562 All costs are subject to the health care cost trend rates, as discussed below. Health care cost trend rates reflect the change in per capita health costs over time due to factors such as medical inflation, utilization, plan design, and technology improvements. For the PERA benefit structure, health care cost trend rates are needed to project the future costs associated with providing benefits to those PERACare enrollees not eligible for premium-free Medicare Part A. Health care cost trend rates for the PERA benefit structure are based on published annual health care inflation surveys in conjunction with actual plan experience (if credible), building block models and industry methods developed by health plan actuaries and administrators. In addition, projected trends for the Federal Hospital Insurance Trust Fund (Medicare Part A premiums) provided by the Centers for Medicare & Medicaid Services are referenced in the development of these rates. Effective December 31, 2020, the health care cost trend rates for Medicare Part A premiums were revised to reflect the current expectation of future increases in rates of inflation applicable to Medicare Part A premiums. The PERA benefit structure health care cost trend rates that were used to measure the total OPEB liability are summarized in the table below: Year PERACare Medicare Plans Medicare Part A Premiums 2021 4.50% 3.75% 2022 6.00% 3.75% 2023 5.80% 4.00% 2024 5.60% 4.00% 2025 5.40% 4.00% 2026 5.10% 4.25% 2027 4.90% 4.25% 2028 4.70% 4.25% 2029+ 4.50% 4.50% 71 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Mortality assumptions used in the December 31, 2020, valuation for the State Division, School Division, Local Government Division, and Judicial Division Trust Funds as shown below, reflect generational mortality and were applied, as applicable, in the December 31, 2020, valuation for the Trust Fund, but developed on a headcount-weighted basis. Affiliated employers of these Division Trust Funds participate in the Trust Fund. Pre-retirement mortality assumptions for the State and Local Government Divisions (members other than State Troopers) were based upon the PubG-2010 Employee Table with generational projection using scale MP-2019. Post-retirement non-disabled mortality assumptions for the State and Local Government Divisions (members other than State Troopers) were based upon the PubG-2010 Healthy Retiree Table, adjusted as follows: • Males: 94% of the rates prior to age 80 and 90% of the rates for ages 80 and older, with generational projection using scale MP-2019. • Females: 87% of the rates prior to age 80 and 107% of the rates for ages 80 and older, with generational projection using scale MP-2019. Disabled mortality assumptions for members other than State Troopers were based upon the PubNS- 2010 Disabled Retiree Table using 99% of the rates for all ages with generational projection using scale MP-2019. The following health care costs assumptions were updated and used in the measurement of the obligations for the HCTF: •Initial per capita health care costs for those PERACare enrollees under the PERA benefit structure who are expected to attain age 65 and older ages and are not eligible for premium-free Medicare Part A benefits were updated to reflect the change in costs for the 2021 plan year. •The health care cost trend rates for Medicare Part A premiums were revised to reflect the then- current expectation of future increases in rates of inflation applicable to Medicare Part A premiums. Actuarial assumptions pertaining to per capita health care costs and their related trend rates are analyzed and updated annually by the Board’s actuary, as discussed above. The actuarial assumptions used in the December 31, 2020, valuations were based on the 2020 experience analysis, dated October 28, 2020, and November 4, 2020, for the period January 1, 2016, through December 31, 2019. Revised economic and demographic assumptions were adopted by PERA's Board on November 20, 2020. 72 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) The long-term expected return on plan assets is reviewed as part of regular experience studies prepared every four to five years for PERA. Recently this assumption has been reviewed more frequently. The most recent analyses were outlined in the Experience Study report dated October 28, 2020. Several factors are considered in evaluating the long-term rate of return assumption, including long- term historical data, estimates inherent in current market data, and a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentages and then adding expected inflation. The PERA Board first adopted the 7.25% long-term expected rate of return as of November 18, 2016. Following an asset/liability study, the Board reaffirmed the assumed rate of return at the Board's November 15, 2019, meeting, to be effective January 1, 2020. As of the most recent reaffirmation of the long-term rate of return, the target asset allocation and best estimates of geometric real rates of return for each major asset class are summarized in the table as follows: Asset Class Target Allocation 30 Year Expected Geometric Real Rate of Return Global Equity 54.00% 5.60% Fixed Income 23.00% 1.30% Private Equity 8.50% 7.10% Real Estate 8.50% 4.40% Alternatives 6.00% 4.70% Total 100.00% In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long- term expected rate of return assumption of 7.25%. Sensitivity of the Town's proportionate share of the net OPEB liability to changes in the Health Care Cost Trend Rates. The following presents the net OPEB liability using the current health care cost trend rates applicable to the PERA benefit structure, as well as if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rates: 1% Decrease in Trend Rates Current Trend Rates 1% Increase in Trend Rates PERACare Medicare trend rate 3.50% 4.50% 5.50% Initial Medicare Part A trend rate 2.75% 3.75% 4.75% Ultimate Medicare Part A trend rate 3.50%4.50% 5.50% Town's Net OPEB liability 778,846$ 801,874$ 828,550$ Component unit net OPEB liability 62,277$ 69,266$ 71,570$ 73 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Discount rate. The discount rate used to measure the total OPEB liability was 7.25 percent. The projection of cash flows used to determine the discount rate applied the actuarial cost method and assumptions shown above. In addition, the following methods and assumptions were used in the projection of cash flows: •Updated health care cost trend rates for Medicare Part A premiums as of the December 31, 2021, measurement date. •Total covered payroll for the initial projection year consists of the covered payroll of the active membership present on the valuation date and the covered payroll of future plan members assumed to be hired during the year. In subsequent projection years, total covered payroll was assumed to increase annually at a rate of 3.00%. •Employer contributions were assumed to be made at rates equal to the fixed statutory rates specified in law and effective as of the measurement date. •Employer contributions and the amount of total service costs for future plan members were based upon a process to estimate future actuarily determined contributions assuming an analogous future plan member growth rate. •Estimated transfers of dollars into the Trust Fund representing a portion of purchase service agreements intended to cover the costs associated with OPEB benefits. •Benefit payments and contributions were assumed to be made at the middle of the year. Based on the above assumptions and methods, the projection test indicates the HCTF's fiduciary net position was projected to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25 percent on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25 percent. Sensitivity of the Town's proportionate share of the net OPEB liability to changes in the discount rate. The following presents the proportionate share of the net OPEB liability calculated using the discount rate of 7.25 percent, as well as what the proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage- point lower (6.25 percent) or 1- percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Current 1% Increase (8.25%) Primary government 931,293$ 801,874$ 691,328$ Component unit 80,445$ 69,266$ 59,717$ 74 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) OPEB plan fiduciary net position. Detailed information about the HCTF's fiduciary net position is available in PERA's annual comprehensive financial report which can be obtained at www.copera.org/investments/pera-financial-reports. Single-Employer Defined Benefit Plan Plan Description - The Town has established the Retiree Medical Insurance Plan (the "RMIP"), single-employer defined benefit OPEB plan which provides benefits to employees with at least 15 years of service with the Town, and who have reached at least 60 years of age. These benefits expire when the retiree reaches the age of 65. The authority to establish and amend benefit provisions rests with the Town's Board of Trustees. The Town does not issue a stand-alone financial report for the plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits provided. The Town of Estes Park, through the RMIP, pays 90% of the premium for single coverage only. Spouses are not eligible for coverage under the plan. Employees covered by benefit terms. At January 1, 2022 the following employees were covered by the benefit terms: Active employees 69 Retired members 1 70 Total OPEB Liability The Town's total OPEB liability of $509,398 was measured as of December 31, 2021 was determined by an actuarial valuation as of January 1, 2022. Actuarial assumptions and other inputs. The total OPEB liability in the January 1, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry Age Normal Price inflation 2.30 percent Salary increases, including wage inflation 3.00 percent Discount rate 2.06 percent The discount rate was based on the Bond Buyers General Obligation 20-Bond Municipal Bond Index. 75 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Mortality rates were based on the following: •Pre-retirement: Sex-distinct Pub-2010 General Employee Mortality Tables adjusted to reflect Mortality Improvement Scale MP-2021 from the 2010 base year, and projected forward using MP-2021 on a generational basis •Post-retirement: Sex-distinct Pub-2010 General Healthy Retiree Mortality Tables adjusted to reflect Mortality Improvement Scale MP-2021 from the 2010 base year, and projected forward using MP-2021 on a generational basis The actuarial assumptions used in the January 1, 2022 valuation were based on a prior study on retirement used by a pension plan covering a population similar to that of the Town's current active employees. Actual experience is annually compared to that expected to ensure the assumed retirement rates continue to be reasonable. Changes in the Total OPEB Liability: Total OPEB Liability Balance at December 31, 2021 439,242$ Changes for the year: Service cost 23,808 Interest on total OPEB liability 9,569 Effect of economic/demographic gains or losses 23,045 Effect of assumptions changes or inputs 37,240 Benefit payments (23,506) Balance at December 31, 2022 509,398$ Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the Town, as well as what the County's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.06 percent) or 1- percentage-point higher (3.06 percent) than the current discount rate: 1% Decrease (1.06%) Current 1% Increase (3.06%) Primary government 546,193$ 509,398$ 475,871$ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the Town, as well as what the Town's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage- point lower or 1-percentage-point higher than the current healthcare cost trend rates: 76 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) 1% Decrease Current Trend Rate 1% Increase Primary government 466,632$ 509,398$ 559,401$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2022, the Town recognized OPEB expense of $6,610. At December 31, 2022, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Differences between expected and actual experience 17,465$ 7,974$ 3,641$ 29,080$ Changes of assumptions 31,430 14,347 6,552 52,329 Town contributions subsequent to measurement date - -- - Total deferred outflows of resources 48,895$ 22,321$ 10,193$ 81,409$ Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Changes of assumptions 37,828$ 17,270$ 7,885$ 62,983$ Total deferred inflows of resources 37,828$ 17,270$ 7,885$ 62,983$ The above amounts reported in governmental activities, Power and Communications Fund and the Water Fund for the primary government as deferred outflow of resources related to OPEB, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 77 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 11. Post-Employment Healthcare Benefits (continued) Primary Government Amortization 2023 990$ 2024 990 2025 990 2026 990 2027 (319) Thereafter 14,786 Total 18,427$ Total net aggregate OPEB income for the HCTF and RMIP was $45,818. 12. Self-Funded Health Insurance Effective January 1, 2012, the Town established a self-insurance plan related to medical insurance for Town employees. The Town administers the plan; however, the Town utilizes a third-party service provider in the administration of the plan. Excess insurance coverage is maintained for claims greater than $40,000 to limit the loss of any individual claim. The plan assesses other funds for estimates of current claims based on historical claims. The estimated claim liability of $164,874 as of December 31, 2022, represents an estimate of incurred but not reported claims. This plan is an internal service fund. 13. Commitments and Contingencies TABOR Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending limitations, and other specific requirements of state and local government. In November 2000, voters within the Town authorized the Town to collect and retain all revenue in excess of the revenue limitations of the Amendment , and to spend all such revenues by transferring said revenues into the Community Reinvestment Fund for the purpose of acquisition, maintenance, repair and replacement of capital assets . In November 2008, voters within Visit Estes Park authorized Visit Estes Park to levy a 2% marketing and promotion tax, and to collect, keep and spend all revenues received in 2009 and each year thereafter without limitation. The Town and Visit Estes Park have established emergency reserves, representing 3% of qualifying revenues, as required by the Amendment. At December 31, 2022, the emergency reserves of $799,168 and $113,687, respectively, were reported as restricted net position. In addition, the Town's emergency reserve was reported as restricted fund balance in the General Fund. 78 Town of Estes Park Notes to Financial Statements (continued) December 31, 2022 13. Commitments and Contingencies (continued) Claims and Judgements The Town is involved in various threatened and pending litigation. The outcome of this litigation cannot to be determined at this time. The Town participates in a number of federal, state, and local programs that are fully or partially funded by grants received from other governmental entities. Expenses financed by grants are subject to audit by the appropriate grantor government. If expenses are disallowed due to noncompliance with grant program regulations, the Town may be required to reimburse the grantor government. At December 31, 2022, significant amounts of grant expenses have not been audited but management believes that subsequent audits will not have a material effect on the overall financial position of the Town. 14. Prior-Period Restatement – Change in Accounting Principle The Town elected to change its method of accounting for inventory from a first-in first-out methodology to a last-in last-out methodology. This change in accounting principle resulted in a $390,638 increase in net position in the Power and Communications Fund, and a $6,650 decrease in net position in the Water Fund. 79 Town of Estes Park, Colorado Required Supplementary Information VARIANCE WITH FINAL BUDGET POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes Sales taxes 16,284,259$ 18,312,318$ 18,129,478$ (182,840)$ Property taxes 492,408 492,408 495,008 2,600 Franchise taxes 563,064 563,064 639,000 75,936 Use taxes 330,000 330,000 364,644 34,644 Total Taxes 17,669,731 19,697,790 19,628,130 (69,660) Licenses and Permits 703,950 904,150 991,751 87,601 Intergovernmental 419,604 1,435,608 1,283,094 (152,514) Charges for services 851,109 867,329 992,343 125,014 Fines and forfeitures 32,000 37,000 48,861 11,861 Contributions and donations 34,800 42,800 54,745 11,945 Investment income 175,000 175,000 29,106 (145,894) Miscellaneous 536,879 525,779 882,860 357,081 Total Charges for Services 2,753,342 3,987,666 4,282,760 295,094 TOTAL REVENUES 20,423,073$ 23,685,456$ 23,910,890$ 225,434$ EXPENDITURES General Government Legislative 367,569$ 401,635$ 319,471$ 82,164$ Attorney 341,957 349,397 308,308 41,089 Judicial 78,015 81,476 67,282 14,194 Town administrator 366,830 385,216 347,735 37,481 Town clerk 352,340 388,364 303,663 84,701 Financial administration 659,199 669,016 627,155 41,861 Planning division 972,023 1,066,398 651,658 414,740 Facilities 1,212,599 1,194,496 870,738 323,758 Outside entity funding 1,436,653 1,578,617 1,560,308 18,309 Human Resources 410,058 411,671 196,960 214,711 Workforce Housing 525,000 598,000 101,271 496,729 Total General Government 6,722,243 7,124,286 5,354,549 1,769,737 Public Safety Police 6,357,852 6,641,844 6,087,101 554,743 Protective inspection 647,837 849,997 727,147 122,850 Total Public Safety 7,005,689 7,491,841 6,814,248 677,593 Public Works Engineering 423,661 511,189 395,111 116,078 Parking services and transit 537,088 947,624 833,765 113,859 Streets 1,459,904 1,489,333 1,186,569 302,764 Stormwater 361,067 402,652 38,532 364,120 Total Public Works 2,781,720 3,350,798 2,453,977 896,821 Culture and Recreation Parks and recreation 1,603,849 1,648,511 1,174,858 473,653 Visitor services 562,019 627,701 426,082 201,619 Museum 435,713 468,278 429,150 39,128 Special events 2,261,079 2,303,521 2,011,843 291,678 Total Culture and Recreation 4,862,660 5,048,011 4,041,933 1,006,078 Capital outlay 250,000 704,370 466,043 238,327 TOTAL EXPENDITURES 21,622,312 23,719,306 19,130,750 4,588,556 Excess (deficiency) of revenues over expenditures (1,199,239) (33,850) 4,780,140 4,813,990 OTHER FINANCING SOURCES AND (USES) Transfers in 6,533,530 1,612,750 1,612,752 2 Transfers out (7,983,919) (6,413,919) (6,413,919) - TOTAL OTHER FINANCING SOURCES AND (USES)(1,450,389) (4,801,169) (4,801,167) 2 NET CHANGE IN FUND BALANCE (2,649,628)$ (4,835,019)$ (21,027)$ 4,813,992$ FUND BALANCES, BEGINNING OF YEAR 11,301,301 11,301,301 16,166,887 4,865,586 FUND BALANCES, END OF YEAR 8,651,673$ 6,466,282$ 16,145,860$ 9,679,578 and Changes in Fund Balances—Budget and Actual For the Year Ended December 31, 2022 Town of Estes Park, Colorado General Fund Schedule of Revenues, Expenditures BUDGETED AMOUNTS The accompanying notes are an integral part of these financial statements. 80 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes 2,440,239$ 2,744,448$ 2,716,357$ (28,091)$ Intergovernmental 1,030,000 1,030,000 - (1,030,000) Investment income 20,000 20,000 11,692 (8,308) TOTAL REVENUES 3,490,239 3,794,448 2,728,049 (1,066,399) EXPENDITURES Current: Operations and Maintenance 608,779 563,009 468,139 94,870 Personnel Services 182,447 182,447 133,400 49,047 Capital outlay 1,817,000 3,030,010 779,719 2,250,291 TOTAL EXPENDITURES 2,608,226 3,775,466 1,381,258 2,394,208 NET CHANGE IN FUND BALANCE 882,013$ 18,982$ 1,346,791$ 1,327,809$ FUND BALANCE, BEGINNING OF YEAR 2,648,123 FUND BALANCE, END OF YEAR 3,994,914$ Town of Estes Park, Colorado Street Improvements Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 81 Colorado PERA - Pension Proportionate Proportion of Share of the Net Actual Net Pension Liability Fiduciary Net Position the Net Pension Pension Liability Member as a Percentage as a Percentage of Year Ending*Liability (Asset)Payroll of Member Payroll Total Pension Liability 12/31/2014 0.844%6,497,912$ 4,502,074$ 144.33%77.66% 12/31/2015 0.927%8,303,953$ 5,078,452$ 163.51%80.70% 12/31/2016 1.030%11,344,006$ 5,842,524 194.16%76.90% 12/31/2017 1.142%15,044,400$ 6,541,376 229.99%73.60% 12/31/2018 1.138%12,668,982$ 7,189,091 176.23%79.37% 12/31/2019 1.157%14,543,721$ 7,485,300 194.30%75.96% 12/31/2020 1.180%8,627,642$ 7,993,965 107.93%86.26% 12/31/2021 1.197%6,238,307$ 8,301,248 75.15%90.88% 12/31/2022 1.212%(1,039,346)$ 8,901,035 -11.68%101.49% Colorado PERA - OPEB Proportion of Proportionate Actual OPEB Liability Fiduciary Net Position the Net OPEB Share of the Net Member as a Percentage as a Percentage of Year Ending*Liability OPEB Liability Payroll of Member Payroll Total OPEB Liability 12/31/2017 0.085%1,102,634$ 6,541,376$ 16.86%16.72% 12/31/2018 0.088%1,138,541$ 7,189,091$ 15.84%17.53% 12/31/2019 0.088%1,198,408$ 7,485,300$ 16.01%17.03% 12/31/2020 0.089%999,076$ 7,993,965$ 12.50%24.49% 12/31/2021 0.089%854,999$ 8,301,248$ 10.30%32.78% 12/31/2022 0.093%801,874$ 8,901,035$ 9.01%39.40% Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available. Colorado PERA - Pension Actual Statutorily Actual Covered Contributions as a Required Employer Contribution Member Percentage of Year Ending Contributions Contributions Excess/(Deficiency)Payroll Covered Payroll 12/31/2013 570,863 570,863 - 4,502,074 12.68% 12/31/2014 643,712 643,712 - 5,078,452 12.68% 12/31/2015 740,832 740,832 - 5,842,524 12.68% 12/31/2016 829,447 829,447 - 6,541,376 12.68% 12/31/2017 911,577 911,577 - 7,189,091 12.68% 12/31/2018 949,136 949,136 - 7,485,300 12.68% 12/31/2019 1,013,635 1,013,635 - 7,993,965 12.68% 12/31/2020 1,073,351 1,073,351 - 8,301,248 12.93% 12/31/2021 1,190,666 1,190,666 - 8,901,035 13.38% 12/31/2022 1,287,282 1,287,282 - 9,390,182 13.71% Colorado PERA - OPEB Actual Statutorily Actual Covered Contributions as a Required Employer Contribution Member Percentage of Year Ending Contributions Contributions Excess/(Deficiency)Payroll Covered Payroll 12/31/2016 66,722 66,722 - 6,541,376 1.02% 12/31/2017 73,329 73,329 - 7,189,091 1.02% 12/31/2018 75,765 75,765 - 7,485,300 1.01% 12/31/2019 81,470 81,470 - 7,993,965 1.02% 12/31/2020 84,672 84,672 - 8,301,248 1.02% 12/31/2021 90,791 90,791 - 8,901,035 1.02% 12/31/2022 95,780 95,780 - 9,390,182 1.02% Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available. Town of Estes Park, Colorado Retirement Plan Supplementary Information For the Year Ended December 31, 2022 Schedule of Proportionate Share of the Net Pension and OPEB Liability and Related Ratios Schedule of Employer Contributions * The data provided in this schedule is based as of the measurement date of the Town's net pension liability, which is as of the beginning of the year. The accompanying notes are an integral part of these financial statements. 82 Year Ended December 31,2022 2021 2020 2019 2018 Total OPEB Liability Service Cost 23,808$ 20,891$ 27,201$ 30,281$ 27,609$ Interest on total OPEB liability 9,569 11,529 20,137 18,576 20,240 Differences between expected and actual experience 23,045 - 13,372 - - Changes of assumptions or other inputs 37,240 18,548 (76,080) (23,110) 11,799 Benefit payments (23,506) (23,013) (73,844) (69,396) (46,251) Net change in total OPEB liability 70,156 27,955 (89,214) (43,649) 13,397 Total OPEB liability - beginning 439,242 411,287 500,501 544,150 530,753 Total OPEB liability - ending 509,398$ 439,242$ 411,287$ 500,501$ 544,150$ Covered employee payroll 12,669,436$ 11,115,810$ 11,175,908$ 10,542,533$ 10,015,583$ Total OPEB liability as a percentage of covered payroll 4.02%3.95%3.68%4.75%5.43% The Town implemented GASB Statement No. 75 in 2018; therefore 10 years of data is not available. Town of Estes Park, Colorado Schedule of Changes in the Town's Total OPEB December 31, 2022 There are no assets accumulated in a trust that meets the definition of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. Liability and Related Ratios - Retiree Medical Insurance Plan The accompanying notes are an integral part of these financial statements. 83 Town of Estes Park, Colorado Other Supplementary Information EMERGENCY COMMUNITY TRAILS PARKING TOTAL NONMAJOR OPEN SPACE CONSERVATION RESPONSE CENTER EXPANSION SERVICES GOVERNMENTAL FUND TRUST FUND SYSTEM FUND FUND FUND FUND FUNDS ASSETS Cash and Investments 1,730,524$ 98,625$ 205,765$ 11$ 1,627,178$ 449,879$ 4,111,982$ Taxes receivable - - 12,488 124,879 62,440 - 199,807 Accounts Receivable 1,238 90 39 - 1,631 13,580 16,578 Intergovernmental Receivable 349,579 - - - -- 349,579 TOTAL ASSETS 2,081,341$ 98,715$ 218,292$ 124,890$ 1,691,249$ 463,459$ 4,677,946$ LIABILITIES, DEFFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 11,165$ -$ -$ 124,879$ 28,497$ 38,532 203,073$ Accrued liabilities 1,182 - - - 1,766 3,157 6,105 Due to other funds 310,000 - - - - - 310,000 TOTAL LIABILITIES 322,347 - - 124,879 30,263 41,689 519,178 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 249,494 - - - - - 249,494 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 571,841 - - 124,879 30,263 41,689 768,672 FUND BALANCES Nonspendable - - - - - - Restricted for: Parks and open space 1,509,500 98,715 - - - - 1,608,215 Capital improvements - - 218,292 11 1,660,986 421,770 2,301,059 TOTAL FUND BALANCES 1,509,500 98,715 218,292 11 1,660,986 421,770 3,909,274 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 2,081,341$ 98,715$ 218,292$ 124,890$ 1,691,249$ 463,459$ 4,677,946$ Town of Estes Park, Colorado Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 The accompanying notes are an integral part of these financial statements. 84 EMERGENCY COMMUNITY TRAILS PARKING TOTAL NONMAJOR OPEN SPACE CONSERVATION RESPONSE CENTER EXPANSION SERVICES GOVERNMENTAL FUND TRUST FUND SYSTEM FUND FUND FUND FUND FUNDS REVENUES Intergovernmental 602,197$ 37,640$ -$ -$ -$639,837$ Charges for Services - - - - - 781,973 781,973 Miscellaneous - - - - - 315 315 Taxes - - 113,182 1,131,816 565,908 - 1,810,906 Licenses and Permits - - - - - 22,641 22,641 Fines and forfeitures - - - - - 58,841 58,841 Investment Income (Expense)3,197 22 9 - 166 - 3,394 TOTAL REVENUES 605,394 37,662 113,191 1,131,816 566,074 863,770 3,317,907 EXPENDITURES Current: Culture and Recreation 67,592 10,736 1,499 1,131,816 - - 1,211,643 Public Works - - - - 46,889 694,934 741,823 Capital Outlay 129,467 - - 157,867 42,873 330,207 Debt Service: Principal - - 39,937 - - - 39,937 Interest - - 8,606 - - - 8,606 TOTAL EXPENDITURES 197,059 10,736 50,042 1,131,816 204,756 737,807 2,332,216 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 408,335 26,926 63,149 - 361,318 125,963 985,691 NET CHANGE IN FUND BALANCE 408,335 26,926 63,149 - 361,318 125,963 985,691 FUND BALANCE, BEGINNING OF YEAR 1,101,165 71,789 155,143 11 1,299,668 295,807 2,923,583 FUND BALANCE, END OF YEAR 1,509,500$ 98,715$ 218,292$ 11$ 1,660,986$ 421,770$ 3,909,274$ Town of Estes Park, Colorado Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures And Changes in Fund Balance For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 85 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 50,000$ 1,230,116$ -$ (1,230,116)$ Investment income 500 500 25 (475) Miscellaneous 18,000 18,000 (1) (18,001) TOTAL REVENUES 68,500 1,248,616 24 (1,248,592) EXPENDITURES Professional Services 123,500 159,238 26,014 133,224 Capital outlay 2,280,628 6,757,013 1,940,694 4,816,319 Debt Service Principal 712,167 709,167 703,463 5,704 Interest 215,968 218,968 215,967 3,001 TOTAL EXPENDITURES 3,332,263 7,844,386 2,886,138 4,958,248 EXCESS OF EXPENDITURES OVER REVENUES (3,263,763) (6,595,770) (2,886,114) 3,709,656 OTHER FINANCING SOURCES Transfers in 7,848,919 6,296,300 6,296,300 - Transfers out (4,920,780) - - - TOTAL OTHER FINANCING SOURCES 2,928,139 6,296,300 6,296,300 - NET CHANGE IN FUND BALANCE (335,624)$ (299,470)$ 3,410,186$ 3,709,656$ FUND BALANCE, BEGINNING OF YEAR 299,641 FUND BALANCE, END OF YEAR 3,709,827$ Town of Estes Park, Colorado Community Reinvestment Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 86 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 475,000$ 966,501$ 602,197$ (364,304)$ Investment income 2,000 2,000 3,197 1,197 TOTAL REVENUES 477,000 968,501 605,394 (363,107) EXPENDITURES Culture and Recreation 109,668 123,749 67,592 56,157 Capital outlay - 1,934,943 129,467 1,805,476 TOTAL EXPENDITURES 109,668 2,058,692 197,059 1,861,633 EXCESS OF EXPENDITURES OVER REVENUES 367,332 (1,090,191) 408,335 1,498,526 OTHER FINANCING USES Transfers in - - - - Transfers out - - - - TOTAL OTHER FINANCING USES - - - - NET CHANGE IN FUND BALANCE 367,332$ (1,090,191)$ 408,335$ 1,498,526$ FUND BALANCE, BEGINNING OF YEAR 1,101,165 FUND BALANCE, END OF YEAR 1,509,500$ Town of Estes Park, Colorado Open Space Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 87 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 34,000$ 34,000$ 37,640$ 3,640$ Investment Income 100 100 22 (78) TOTAL REVENUES 34,100 34,100 37,662 3,562 EXPENDITURES Culture and Recreation 15,000 15,000 10,736 4,264 Capital Outlay - 19,000 - 19,000 TOTAL EXPENDITURES 15,000 34,000 10,736 23,264 NET CHANGE IN FUND BALANCE 19,100$ 100$ 26,926$ 26,826$ FUND BALANCE, BEGINNING OF YEAR 71,789 FUND BALANCE, END OF YEAR 98,715$ Town of Estes Park, Colorado For the Year Ended December 31, 2022 Conservation Trust Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual The accompanying notes are an integral part of these financial statements. 88 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes 101,677$ 114,352$ 113,182$ (1,170)$ Intergovernmental -- - - Investment income 100 100 9 (91) TOTAL REVENUES 101,777 114,452 113,191 (1,261) EXPENDITURES Culture and Recreation 16,700 16,700 1,499 15,201 Debt Service Principal 39,938 39,938 39,937 1 Interest 8,607 8,607 8,606 1 TOTAL EXPENDITURES 65,245 65,245 50,042 15,203 EXCESS OF EXPENDITURES OVER REVENUES 36,532 49,207 63,149 13,942 NET CHANGE IN FUND BALANCE 36,532$ 49,207$ 63,149$ 13,942$ FUND BALANCE, BEGINNING OF YEAR 155,143 FUND BALANCE, END OF YEAR 218,292$ Town of Estes Park, Colorado Emergency Response Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 89 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes 1,016,766$ 1,143,520$ 1,131,816$ (11,704)$ TOTAL REVENUES 1,016,766 1,143,520 1,131,816 (11,704) EXPENDITURES Culture and Recreation 1,016,766 1,143,520 1,131,816 11,704 TOTAL EXPENDITURES 1,016,766 1,143,520 1,131,816 11,704 NET CHANGE IN FUND BALANCE -$ -$ -$ -$ FUND BALANCE, BEGINNING OF YEAR 11 FUND BALANCE, END OF YEAR 11$ Town of Estes Park, Colorado Community Center Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 90 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services 795,000$ 795,000$ 781,973$ (13,027)$ Parking Permits and Tickets 21,095 21,095 81,482 60,387 Miscellaneous - - 315 315 TOTAL REVENUES 816,095 816,095 863,770 47,675 EXPENDITURES Public Works 693,976 813,042 694,934 118,108 Capital outlay - 51,762 42,873 8,889 TOTAL EXPENDITURES 693,976 864,804 737,807 126,997 EXCESS OF EXPENDITURES OVER REVENUES 122,119 (48,709) 125,963 174,672 OTHER FINANCING SOURCES Transfers in - - - - TOTAL OTHER FINANCING SOURCES - - - - NET CHANGE IN FUND BALANCE 122,119$ (48,709)$ 125,963$ 174,672$ FUND BALANCE, BEGINNING OF YEAR 295,807 FUND BALANCE, END OF YEAR 421,770$ Town of Estes Park, Colorado Parking Services Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 91 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental -$ 1,998,745$ -$ (1,998,745)$ Taxes 508,383 576,760 565,908 (10,852) Investment income 200 200 166 (34) TOTAL REVENUES 508,583 2,575,705 566,074 (2,009,631) EXPENDITURES Public Works 102,050 103,904 46,889 57,015 Capital outlay 400,000 3,209,744 157,867 3,051,877 TOTAL EXPENDITURES 502,050 3,313,648 204,756 3,108,892 EXCESS OF EXPENDITURES OVER REVENUES 6,533 (737,943) 361,318 1,099,261 NET CHANGE IN FUND BALANCE 6,533$ (737,943)$ 361,318$ 1,099,261$ FUND BALANCE, BEGINNING OF YEAR 1,299,668 FUND BALANCE, END OF YEAR 1,660,986$ Town of Estes Park, Colorado Trails Expansion Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 92 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 20,289,610$ 20,289,610$ 22,418,799$ 2,129,189$ Intergovernmental - 2,805,423 106,968 (2,698,455) Investment income 122,000 122,000 160,353 38,353 Miscellaneous 98,000 98,000 188,012 90,012 TOTAL REVENUES 20,509,610 23,315,033 22,874,132 (440,901) EXPENDITURES Source of supply 8,168,860 8,168,860 8,652,413 (483,553) Distribution 4,725,610 4,817,061 2,676,962 2,140,099 Customer accounts 566,354 585,510 396,188 189,322 Administration and general 2,557,168 2,578,933 1,987,770 591,163 Broadband 1,323,728 1,406,817 1,148,566 258,251 Capital outlay 1,366,344 13,797,256 9,053,693 4,743,563 Debt Service Other 231,799 231,799 - 231,799 Principal 414,735 414,735 414,735 - Interest 1,146,406 1,146,406 1,144,035 2,371 TOTAL EXPENDITURES 20,501,004 33,147,377 25,474,362 7,673,015 OTHER FINANCING SOURCES AND (USES) Transfers in - - - - Transfers out (1,488,000) (1,488,000) (1,488,000) - Loss on sale of capital assets - - - - TOTAL OTHER FINANCING SOURCES AND (USES)(1,488,000) (1,488,000) (1,488,000) - CHANGE IN NET POSITION, BUDGETARY BASIS (1,479,394)$ (11,320,344)$ (4,088,230)$ 7,232,114$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 9,053,693 Depreciation expense (1,432,792) Bond Premium Amortization 233,433 Debt principal payments 414,735 CHANGE IN NET POSITION - GAAP BASIS 4,180,839 NET POSITION, BEGINNING OF YEAR, as restated 30,902,144 NET POSITION, END OF YEAR 35,082,983$ And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 Town of Estes Park, Colorado Power and Communications Fund Schedule of Revenues, Expenditures The accompanying notes are an integral part of these financial statements. 93 VARIANCE WITH FINAL BUDGET POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services 5,580,272$ 5,580,272$ 6,499,163$ 918,891$ Other - - 170,605 170,605 Intergovernmental - 12,979,000 47,164 (12,931,836) Investment Income 100,000 100,000 39,800 (60,200) TOTAL REVENUES 5,680,272 18,659,272 6,756,732 (11,902,540) EXPENDITURES Current Source of supply 120,000 120,000 88,828 31,172 Purification 1,114,130 1,174,434 844,146 330,288 Distribution 1,970,802 2,135,845 1,127,155 1,008,690 Customer accounts 408,891 416,689 207,778 208,911 Administration and general 1,261,022 1,273,971 786,716 487,255 Capital outlay 2,062,397 29,766,477 1,003,636 28,762,841 Debt service Principal 382,494 382,494 310,180 72,314 Interest 104,687 104,687 149,644 (44,957) TOTAL EXPENDITURES 7,424,423 35,374,597 4,518,083 30,856,514 OTHER FINANCING SOURCES AND (USES) Transfers in - - 228,091 228,091 Transfers out (124,750) (124,750) (124,752) (2) Financing proceeds - 12,168,000 - (12,168,000) Tap Fee - -2,004,263 2,004,263 Loss on abandonment of capital assets 135,000 135,000 (1,269,116) (1,404,116) TOTAL OTHER FINANCING SOURCES AND (USES)10,250 12,178,250 838,486 (11,567,855) CHANGE IN NET POSITION, BUDGETARY BASIS (1,733,901)$ (4,537,075)$ 3,077,135$ 7,614,210$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay, including capitalized interest 1,003,636 Depreciation expense (954,835) Capital contributions - Debt principal 310,180 CHANGE IN NET POSITION - GAAP BASIS 3,436,116 NET POSITION, BEGINNING OF YEAR 33,886,083 NET POSITION, END OF YEAR 37,322,199$ And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 Town of Estes Park, Colorado Water Fund Schedule of Revenues, Expenditures BUDGETED AMOUNTS The accompanying notes are an integral part of these financial statements. 94 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total ASSETS Current Assets: Cash and investments 480,334$ 1,497,403$ 845,639$ 2,149,307$ 55,031$ 5,027,714$ Accounts receivable 23,249 1,274 751 203,800 - 229,074 Inventories 26,524 - - - - 26,524 Prepaid items - - 43,864 148,506 - 192,370 Total Current Assets 530,107 1,498,677 890,254 2,501,613 55,031 5,475,682 Non-Current Assets: Capital assets, net of accumulated depreciation 342,460 874,292 155,658 - - 1,372,410 TOTAL ASSETS 872,567 2,372,969 1,045,912 2,501,613 55,031 6,848,092 LIABILITIES Current Liabilities: Accounts payable 30,687 4,011 15,959 - 433 51,090 Accrued liabilities 8,353 - 7,664 - -16,017 Claims payable - - - 671,640 - 671,640 Compensated absences payable 27,514 - 13,346 - - 40,860 Total Current Liabilities 66,554 4,011 36,969 671,640 433 779,607 Non-Current Liabilities: Compensated absences payable 16,496 - 2,278 - - 18,774 OPEB Liability 2,264 - 2,358 - - 4,622 Total Non-Current Liabilities 18,760 - 4,636 - - 23,396 TOTAL LIABILITIES 85,314 4,011 41,605 671,640 433 803,003 NET POSITION Net investment in capital assets 342,460 874,292 155,658 - - 1,372,410 Unrestricted 444,793 1,494,666 848,649 1,829,973 54,598 4,672,679 TOTAL NET POSITION 787,253 2,368,958$ 1,004,307$ 1,829,973$ 54,598$ 6,045,089$ Town of Estes Park, Colorado Combining Statement of Net Position Internal Service Funds December 31, 2022 The accompanying notes are an integral part of these financial statements. 95 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total OPERATING REVENUES Charges for services 561,946$ 646,558$ 938,274$ 3,755,337$ 385,000$ 6,287,115$ Miscellaneous 6,454 40 1,500 --7,994 Grant revenue 34,608 - - - - 34,608 TOTAL OPERATING REVENUES 603,008 646,598 939,774 3,755,337 385,000 6,329,717 OPERATING EXPENSES Salaries and benefits 422,305 - 514,754 --937,059 Supplies 6,609 - 33,391 --40,000 Utilities 12,407 - 17,492 --29,899 Training 9,095 - 2,082 --11,177 Maintenance and repairs 24,904 - 157,015 --181,919 Professional fees 12,898 - 15,404 -3,421 31,723 Depreciation 9,423 221,024 68,400 --298,847 Medical benefits -- -4,375,380 -4,375,380 Property and liability insurance 3,029 - 6,228 -362,847 372,104 TOTAL OPERATING EXPENSES 500,670 221,024 814,766 4,375,380 366,268 6,278,108 OPERATING INCOME (LOSS)102,338 425,574 125,008 (620,043) 18,732 51,609 NON-OPERATING REVENUES Investment income 1,953 4,027 1,848 2,640 -10,468 Gain on sale of asset -41,854 - - -41,854 TOTAL NON-OPERATING REVENUES 1,953 45,881 1,848 2,640 -52,322 INCOME (LOSS) BEFORE TRANSFERS 104,291 471,455 126,856 (617,403) 18,732 103,931 Transfers in 135,000 - - - - 135,000 Transfers out (228,091) (17,381) - - - (245,472) CHANGE IN NET POSITION 11,200 454,074 126,856 (617,403) 18,732 (6,541) NET POSITION, BEGINNING OF YEAR 776,053 1,914,884 877,451 2,447,376 35,866 6,051,630 NET POSITION, END OF YEAR 787,253$ 2,368,958$ 1,004,307$ 1,829,973$ 54,598$ 6,045,089$ Internal Service Funds Town of Estes Park, Colorado Combining Statement of Revenues, Expenditures and Changes in Fund Net Position For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 96 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 541,994$ 646,017$ 937,820$ 3,682,629$ 385,000$ 6,193,460$ Cash received from other sources 41,062 40 1,500 - - 42,602 Cash paid for goods and services (88,415) 4,011 (252,458) (4,198,595) (366,988) (4,902,445) Cash paid to employees (403,507) - (514,754) - - (918,261) NET CASH FROM OPERATING ACTIVITIES 91,134 650,068 172,108 (515,966) 18,012 415,356 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in from other funds 135,000 - - - - 135,000 Transfers out (228,091) (17,381) - - - (245,472) NET CASH FROM NON-CAPITAL FINANCING ACTIVITIES (93,091) (17,381) - - - (110,472) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from the sale of assets - 41,854 - - - 41,854 Acquisitions of capital assets from other funds, net of depreciation (171,907) - - - - (171,907) Acquisitions of capital assets (60,888) (618,944) - - - (679,832) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (232,795) (577,090) - - - (809,885) CASH FLOWS FROM INVESTING ACTIVITIES Investment income (expense)1,953 4,027 1,848 2,640 - 10,468 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES 1,953 4,027 1,848 2,640 - 10,468 NET CHANGE IN CASH AND CASH EQUIVALENTS (232,799) 59,624 173,956 (513,326) 18,012 (494,533) CASH AND CASH EQUIVALENTS Beginning of Year 713,133 1,437,779 671,683 2,662,633 37,019 5,522,247 End of Year 480,334$ 1,497,403$ 845,639$ 2,149,307$ 55,031$ 5,027,714$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income (loss)102,338$ 425,574$ 125,008$ (620,043)$ 18,732$ 51,609$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 9,423 221,024 68,400 - - 298,847 (Increase) decrease in operating assets: Accounts receivable (19,952) (541) (454)(72,708) - (93,655) Inventories (5,171) - -- - (5,171) Prepaid items - - (2,054) (113,506) - (115,560) Increase (decrease) in operating liabilities: Accounts payable (16,964) 4,011 4,648 290,291 (720) 281,266 Accrued liabilities 2,362 - (1,663) - - 699 Compensated absences payable 19,098 - (21,777) - - (2,679) NET CASH FROM OPERATING ACTIVITIES 91,134$ 650,068$ 172,108$ (515,966)$ 18,012$ 415,356$ Town of Estes Park, Colorado Combining Statement of Cash Flows Nonmajor Internal Service Funds For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 97 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services 567,725$ 592,797$ 561,946$ (30,851)$ Fleet In/Out 135,000 135,000 (93,091) (228,091) Grant revenue - - 34,608 34,608 Miscellaneous - 558,567 6,454 (552,113) Investment income 4,000 4,000 1,953 (2,047) TOTAL REVENUES 706,725 1,290,364 511,870 (778,494) EXPENDITURES Salaries and benefits 376,949 527,191 422,305 104,886 Supplies 16,710 13,060 6,609 6,451 Utilities 9,017 15,841 12,407 3,434 Job performance expenses 11,770 11,770 9,095 2,675 Maintenance and repairs 33,823 30,649 24,904 5,745 Professional fees 12,409 12,409 12,898 (489) Property and liability insurance 3,029 3,029 3,029 - Capital outlay 135,000 1,180,923 232,795 948,128 TOTAL EXPENDITURES 598,707 1,794,872 724,042 1,070,830 CHANGE IN NET POSITION, BUDGETARY BASIS 108,018$ (504,508)$ (212,172)$ 292,336$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 232,795 Depreciation (9,423) CHANGE IN NET POSITION - GAAP BASIS 11,200 NET POSITION, BEGINNING OF YEAR 776,053 NET POSITION, END OF YEAR 787,253$ Town of Estes Park, Colorado Fleet Maintenance Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 98 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services 646,557$ 646,557$ 646,558$ 1$ Miscellaneous - - 40 40 Investment income 500 500 4,027 3,527 TOTAL REVENUES 647,057 647,057 650,625 3,568 EXPENDITURES Capital outlay 272,000 793,332 618,945 174,387 TOTAL EXPENDITURES 272,000 793,332 618,945 174,387 OTHER FINANCING SOURCES (USES) Transfers out - (17,381) (17,381) - Gain on sale of capital assets - -41,854 41,854 TOTAL OTHER FINANCING SOURCES - (17,381) 24,473 41,854 CHANGE IN NET POSITION, BUDGETARY BASIS 375,057$ (163,656)$ 56,153$ 177,955$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Depreciation (221,024) Capital outlay 618,945 CHANGE IN NET POSITION - GAAP BASIS 454,074 NET POSITION, BEGINNING OF YEAR 1,914,884 NET POSITION, END OF YEAR 2,368,958$ Town of Estes Park, Colorado Vehicle Replacement Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 99 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 935,672$ 935,672$ 938,274$ 2,602$ Investment income 4,000 4,000 1,848 (2,152) Miscellaneous - - 1,500 1,500 TOTAL REVENUES 939,672 939,672 941,622 1,950 EXPENDITURES Salaries and benefits 587,967 599,186 514,754 84,432 Insurance Premiums 6,228 6,228 6,228 - Professional Services/Fees 12,500 15,000 15,404 (404) Repair and Maintenance 179,705 179,705 157,015 22,690 Materials and Supplies 44,774 42,275 33,391 8,884 Job Performance Expenses 7,450 7,450 2,082 5,368 Utilities 23,000 23,000 17,492 5,508 Capital outlay 89,000 106,500 - 106,500 TOTAL EXPENDITURES 950,624 979,344 746,366 232,978 CHANGE IN NET POSITION, BUDGETARY BASIS (10,952)$ (39,672)$ 195,256$ 234,928$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay - Depreciation expense (68,400) CHANGE IN NET POSITION - GAAP BASIS 126,856 NET POSITION, BEGINNING OF YEAR 877,451 NET POSITION, END OF YEAR 1,004,307$ Town of Estes Park, Colorado Information Technology Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 100 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $3,315,368 $3,315,368 3,755,337$ 439,969$ Investment income 20,000 20,000 2,640 (17,360) TOTAL REVENUES 3,335,368 3,335,368 3,757,977 422,609 EXPENDITURES Current Medical expense 4,145,000 4,987,454 4,375,380 612,074 TOTAL EXPENDITURES 4,145,000 4,987,454 4,375,380 612,074 CHANGE IN NET POSITION, BUDGETARY BASIS (809,632)$ (1,652,086)$ (617,403)$ 1,034,683$ NET POSITION, BEGINNING OF YEAR 2,447,376 NET POSITION, END OF YEAR 1,829,973$ And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 Town of Estes Park, Colorado Medical Insurance Fund Schedule of Revenues, Expenditures The accompanying notes are an integral part of these financial statements. 101 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 385,000$ 395,500$ 385,000$ (10,500)$ TOTAL REVENUES 385,000 395,500 385,000 (10,500) EXPENDITURES Property and liability insurance 385,000 395,500 366,268 29,232 TOTAL EXPENDITURES 385,000 395,500 366,268 29,232 OTHER FINANCING SOURCES (USES) Transfers in - - - - Gain on sale of capital assets - - - - TOTAL OTHER FINANCING SOURCES - - - - CHANGE IN NET POSITION, BUDGETARY BASIS -$ -$ 18,732$ 18,732$ NET POSITION, BEGINNING OF YEAR 35,866 NET POSITION, END OF YEAR 54,598$ Town of Estes Park, Colorado Risk Management Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. 102 Town of Estes Park, Colorado Statistical Section Contents Schedules Pages Financial Trends These schedules contain trend information to help the reader understand how the Town's financial condition has changed over time. 1‐4 103‐107 Revenue Capacity These schedules contain information to help the reader assess the Town's largest revenue source, sales and use taxes. 5‐7 108‐110 Debt Capacity These schedules present information to help the reader assess the affordability of the Town's current levels of outstanding debt and the Town's ability to issue debt in the future. 8‐11 111‐114 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Town's financial activities take place. 12‐13 115‐116 Operating Information These schedules contain service data to help the reader understand how information in the financial report relates to the services the Town provides and the activities it performs. 14‐16 117‐120 Statistical Section This section of the Town of Estes Park Annual Comprehensive Financial Report presents detailed data as a context for understanding the information in the financial statements, note disclosures, and required supplementary information. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental Activities Net Investment in capital assets 42,700,081$ 43,113,642$ 42,539,162$ 49,411,763$ 57,733,149$ 59,401,578$ 62,894,857$ 61,698,464$ 61,939,706$ 63,172,558$ Restricted 560,342 912,392 9,406,344 4,797,549 5,348,119 4,739,559 3,581,754 1,878,535 6,398,672 8,694,410 Unrestricted 8,225,881 9,808,049 5,434,320 4,165,544 1,585,920 3,587,854 6,122,258 10,800,413 12,729,796 17,973,032 Total governmental activities net position 51,486,304$ 53,834,083$ 57,379,826$ 58,374,856$ 64,667,188$ 67,728,991$ 72,598,869$ 74,377,412$ 81,068,174$ 89,840,000$ Business-type Activities Net Investment in capital assets 26,673,350$ 26,771,542$ 29,175,592$ 30,145,069$ 32,596,716$ 37,356,339$ 41,111,109$ 45,632,830$ 45,872,510$ 44,719,687$ Restricted 1,429,588 1,503,341 1,671,908 1,693,717 1,250,000 1,250,000 845,273 1,114,118 1,250,000 1,250,000 Unrestricted 14,852,929 16,679,006 12,728,316 12,717,005 13,112,576 12,019,357 15,829,836 15,071,905 18,772,625 27,724,282 Total business-type activities net position 42,955,867$ 44,953,889$ 43,575,816$ 44,555,791$ 46,959,292$ 50,625,696$ 57,786,218$ 61,818,853$ 65,895,135$ 73,693,969$ Primary Government Net Investment in capital assets 69,373,431$ 69,885,184$ 71,714,754$ 79,556,832$ 90,329,865$ 96,757,917$ 104,005,966$ 107,331,294$ 107,812,216$ 107,892,245$ Restricted 1,989,930 2,415,733 11,078,252 6,491,266 6,598,119 5,989,559 4,427,027 2,992,653 7,648,672 9,944,410 Unrestricted 23,078,810 26,487,055 18,162,636 16,882,549 14,698,496 15,607,211 21,952,094 25,872,318 31,502,421 45,697,314 Total primary governmental net position 94,442,171$ 98,787,972$ 100,955,642$ 102,930,647$ 111,626,480$ 118,354,687$ 130,385,087$ 136,196,265$ 146,963,309$ 163,533,969$ Source: Current and prior years' financial statements (accrual basis of accounting) As of December 31, Schedule 1 Town of Estes Park, Colorado Net Position 103 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Expenses Governmental Activities: General Government 3,769,227$ 4,660,385$ 5,280,912$ 6,229,691$ 5,847,655$ 5,101,078$ 4,944,301$ 6,130,371$ 5,209,373$ 4,684,953$ Public Safety 3,754,648 5,281,116 4,063,117 4,915,545 5,276,247 5,339,084 6,038,646 6,231,721 5,940,530 6,559,825 Public Works 2,794,976 2,192,522 2,736,985 2,549,174 4,284,402 2,884,866 2,109,022 3,858,918 5,993,789 6,559,015 Culture and Recreation 4,441,986 4,669,256 5,342,804 6,471,134 6,495,360 6,969,523 5,985,682 4,385,164 5,769,152 5,179,185 Interest on Long-Term Debt 86,521 146,875 147,226 136,216 298,651 317,206 258,959 247,402 225,820 195,654 Total governmental activities expenses 14,847,358 16,950,154 17,571,044 20,301,760 22,202,315 20,611,757 19,336,610 20,853,576 23,138,664 23,178,632 Business-type Activities: Light & Power 12,031,616 12,272,416 12,813,281 14,122,680 14,727,651 15,628,176 14,367,197 16,381,774 17,519,237 17,205,293 Water 3,900,610 3,614,506 3,776,050 4,083,190 4,719,776 4,937,246 3,876,141 4,335,553 4,802,481 5,428,218 Total business-type activities expenses 15,932,226 15,886,922 16,589,331 18,205,870 19,447,427 20,565,422 18,243,338 20,717,327 22,321,718 22,633,511 Total primary governmental expenses 30,779,584$ 32,837,076$ 34,160,375$ 38,507,630$ 41,649,742$ 41,177,179$ 37,579,948$ 41,570,903$ 45,460,382$ 45,812,143$ Program Revenues Governmental activities: Charges for services: General Government 858,746$ 1,151,278$ 1,013,428$ 1,243,244$ 799,158$ 779,069$ 711,282$ 291,902$ 1,284,871$ 516,608$ Public Safety 54,823 60,462 57,676 45,045 140,346 190,659 150,535 444,821 625,061 733,288 Public Works - - - - 476,240 470,681 440,780 5,015 3,300 857,177 Culture and Recreation 498,317 581,743 518,606 517,037 647,523 596,444 246,454 3,235 497,354 789,337 Operating grants and contributions 812,750 977,593 1,500,181 1,041,897 1,776,442 38,090 18,999 103,277 213,710 483,861 Capital grants and contributions 850,689 2,142,712 5,275,791 1,616,090 7,426,948 5,213,494 1,467,471 3,070,901 2,600,273 1,493,815 Total governmental activities program revenues 3,075,325 4,913,788 8,365,682 4,463,313 11,266,657 7,288,437 3,035,521 3,919,151 5,224,569 4,874,086 Business-type Activities: Light & Power 13,425,840 13,238,766 13,639,816 13,907,893 15,287,109 16,381,233 17,863,980 19,045,222 20,433,120 22,418,799 Water 3,568,840 3,508,109 3,822,059 4,458,412 4,964,756 5,541,465 5,334,499 6,584,836 7,166,539 8,503,425 Operating grants and contributions - - - - - - - 97,309 8,374 - Capital grants and contributions 942,121 774,133 2,049,792 789,735 1,448,452 983,621 1,147,464 24,809 - 154,132 Total business-type activities program revenues 17,936,801 17,521,008 19,511,667 19,156,040 21,700,317 22,906,319 24,345,943 25,752,176 27,608,033 31,076,356 Total primary government program revenues 21,012,126$ 22,434,796$ 27,877,349$ 23,619,353$ 32,966,974$ 30,194,756$ 27,381,464$ 29,671,327$ 32,832,602$ 35,950,442$ Net (Expense)/Revenue Governmental activities (11,772,033)$ (12,036,366)$ (9,205,362)$ (15,838,447)$ (10,935,658)$ (13,323,320)$ (16,301,089)$ (16,934,425)$ (17,914,095)$ (18,304,546)$ Business-type activities 2,004,575 1,634,086 2,922,336 950,170 2,252,890 2,340,897 6,102,605 5,034,849 5,286,315 8,442,845 Total primary government net expenses (9,767,458)$ (10,402,280)$ (6,283,026)$ (14,888,277)$ (8,682,768)$ (10,982,423)$ (10,198,484)$ (11,899,576)$ (12,627,780)$ (9,861,701)$ Schedule 2 Town of Estes Park, Colorado Changes in Net Position (accrual basis of accounting) For Years Ended December 31, 104 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Taxes Sales taxes 7,863,605$ 10,405,574$ 12,227,589$ 13,027,892$ 13,859,472$ 15,076,059$ 16,357,777$ 14,390,465$ 19,909,713$ 22,636,312$ Property taxes 366,548 353,864 343,135 361,750 21,676 388,128 415,220 436,515 406,217 461,255 Franchise taxes 468,706 480,676 470,612 488,325 512,132 542,058 564,658 560,865 588,222 639,000 Use taxes - - 280,612 304,540 335,175 331,579 361,623 317,686 409,078 365,369 Other taxes & contributions 85,217 132,712 458,250 528,506 442,651 513,425 831,379 787,956 1,074,818 53,457 Investment income (loss)1,336 47,534 41,358 106,420 221,620 199,804 359,280 170,372 (18,724) 44,217 Miscellaneous 1,056,596 614,451 424,843 1,279,985 432,218 575,169 345,109 655,121 733,146 964,369 Gain (Loss) on sale of capital assets - 835,373 - - - 55,776 13,950 (464,667) - - Extraordinary item: Environmental Remediation - -- - - - - Special item: Elim. Of net pension obligation - -- - - - - Transfers In (Out)1,488,135 1,513,961 1,555,141 736,059 1,403,046 (815,338) 1,921,970 1,858,565 1,802,028 1,612,752 Total governmental activities 11,330,143$ 14,384,145$ 15,801,540$ 16,833,477$ 17,227,990$ 16,866,660$ 21,170,966$ 18,712,878$ 24,904,498$ 26,776,731$ Business-type activities: Investment income 12,790$ 67,013$ 53,616$ 113,292$ 147,234$ 307,128$ 537,901$ 447,994$ (6,839)$ 200,153$ Miscellaneous 687,391 1,810,884 367,588 457,589 1,197,549 816,467 2,457,193 408,357 598,834 384,600 Gain (Loss) on sale of capital assets - - - - 208,874 93,769 (15,207) - - - Transfers In (Out)(1,488,135) (1,513,961) (1,555,141) (736,059) (1,403,046) 815,338 (1,921,970) (1,858,565) (1,802,028) (1,612,752) Total business-type activities (787,954) 363,936 (1,133,937) (165,178) 150,611 2,032,702 1,057,917 (1,002,214) (1,210,033) (1,027,999) Total primary government 10,542,189$ 14,748,081$ 14,667,603$ 16,668,299$ 17,378,601$ 18,899,362$ 22,228,883$ 17,710,664$ 23,694,465$ 25,748,732$ Changes in Net Position Governmental activities (441,890)$ 2,347,779$ 6,596,178$ 995,030$ 6,292,332$ 3,543,340$ 4,869,877$ 1,778,453$ 6,990,403$ 8,472,185$ Business-type activities 1,216,621 1,998,022 1,788,399 784,992 2,403,501 4,373,599 7,160,522 4,032,635 4,076,282 7,414,846 Total primary government 774,731$ 4,345,801$ 8,384,577$ 1,780,022$ 8,695,833$ 7,916,939$ 12,030,399$ 5,811,088$ 11,066,685$ 15,887,031$ Source: Current and prior year's financial statements Schedule 2 (continued) Town of Estes Park, Colorado Changes in Net Position (accrual basis of accounting) For Years Ended December 31, 105 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Nonspendable 14,099$ 103,454$ 41,672$ 48,693$ 105,093$ 103,694$ 47,654$ 26,368$ 11,537$ 15,195$ Restricted 361,000 443,437 545,557 576,778 599,398 707,795 628,494 716,368 826,966 790,222 Assigned 569,653 715,775 678,791 373,866 945,296 300,087 755,923 2,091,374 2,649,628 4,132,686 Unassigned 3,750,551 3,036,517 2,932,790 4,422,749 529,245 7,541,385 9,802,762 9,092,668 12,678,756 11,207,757 Total general fund 4,695,303$ 4,299,183$ 4,198,810$ 5,422,086$ 2,179,032$ 8,652,961$ 11,234,833$ 11,926,778$ 16,166,887$ 16,145,860$ All other Governmental Funds Nonspendable 30,807 - - - 199,966 - 199,966 210,546 - - Restricted 199,342 468,955 8,860,787 4,220,771 4,654,222 4,031,764 2,953,260 1,162,166 2,998,920 7,904,188 Assigned 5,403,719 5,545,301 2,516,777 1,206,842 430,752 2,201,452 - 1,763,200 2,872,427 3,709,827 Unassigned - - - (247,404) (371,805) - (199,966) - - - Total all other governmental funds 5,633,868$ 6,014,256$ 11,377,564$ 5,180,209$ 4,913,135$ 6,233,216$ 2,953,260$ 3,135,912$ 5,871,347$ 11,614,015$ Total general fund + all other govt funds 10,329,171$ 10,313,439$ 15,576,374$ 10,602,295$ 7,092,167$ 14,886,177$ 14,188,093$ 15,062,690$ 22,038,234$ 27,759,875$ Source: Current and prior year's financial statements The Town adopted GASB 54 for 2011. As of December 31, Schedule 3 Town of Estes Park, Colorado Fund Balances, Governmental Funds (modified accrual basis of accounting) 106 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues Taxes 8,698,859$ 11,240,114$ 13,321,948$ 14,182,507$ 14,728,455$ 16,851,249$ 18,530,657$ 16,493,487$ 22,388,048$ 24,155,393$ Licenses, fees and permits 511,477 525,376 581,401 730,684 962,487 912,204 809,296 630,350 787,817 1,014,392 Intergovernmental 1,116,976 3,024,306 6,665,193 3,167,621 6,798,487 8,899,628 1,175,891 2,566,116 3,401,599 1,922,931 Charges for services 641,241 1,004,843 665,719 702,261 685,200 741,016 574,802 310,959 1,329,280 1,502,505 Fines and forfeitures 54,823 60,462 57,676 45,045 38,831 76,366 61,890 59,925 74,933 107,702 Rental Income 204,345 202,802 284,914 327,336 376,749 307,267 103,063 293,228 218,558 271,811 Contributions - - - - - - - 41,510 60,809 54,745 Investment Income (Loss)2,810 32,759 31,571 86,049 153,494 153,046 308,544 170,372 (18,724) 44,217 Miscellaneous 1,081,675 607,341 307,110 544,691 470,923 547,970 338,462 188,778 199,649 883,174 Total revenues 12,312,206 16,698,003 21,915,532 19,786,194 24,214,626 28,488,746 21,902,605 20,754,725 28,441,969 29,956,870 Expenditures General Government 3,336,471 3,877,566 4,452,444 4,698,211 4,531,015 4,468,864 4,577,812 5,539,291 5,362,265 5,380,563 Public Safety 3,708,234 5,081,198 3,991,990 4,758,036 5,037,114 4,535,463 5,492,446 5,309,712 5,896,062 6,814,248 Public Works 2,539,203 1,268,615 2,907,909 2,274,000 3,300,722 2,435,684 1,966,190 2,622,594 3,163,334 3,797,339 Culture and Recreation 3,554,387 3,962,643 4,402,049 5,545,079 4,996,013 5,380,601 5,513,533 4,005,928 5,417,407 5,253,576 Community Reinvestment 219,832 160,649 329,556 169,735 23,151 2,600 - - - - Capital outlay 5,121,863 4,359,403 1,541,624 8,118,339 15,324,161 4,751,293 6,201,862 3,297,297 2,465,842 3,516,663 Debt Service Principal - 370,000 434,171 445,926 566,989 692,149 766,072 692,990 715,468 743,400 Interest, Fiscal Charges, bond issuance costs 144,739 147,622 147,995 137,006 266,955 304,006 281,589 270,881 248,075 224,573 Total expenditures 18,624,729 19,227,696 18,207,738 26,146,332 34,046,120 22,570,660 24,799,504 21,738,693 23,268,453 25,730,362 Excess of revenues over (under) expenditures (6,312,523) (2,529,693) 3,707,794 (6,360,138) (9,831,494) 5,918,086 (2,896,899) (983,968) 5,173,516 4,226,508 Other Financing Sources (Uses) Capital Lease Proceeds - - - - - 291,845 Transfers in 4,668,135 5,008,419 2,850,141 2,760,009 3,849,670 3,226,246 7,932,227 3,203,703 3,383,885 7,909,052 Transfers out (3,180,000) (3,494,458) (1,295,000) (2,023,950) (2,080,921) (1,350,322) (6,025,257) (1,345,138) (1,581,857) (6,413,919) Proceeds on sale of assets - 1,000,000 - 650,000 - - - - - - Bond Proceeds/premiums/Escrow activity 6,075,000 - - - 4,552,617 - - - - - Total other financing sources (uses)7,563,135 2,513,961 1,555,141 1,386,059 6,321,366 1,875,924 2,198,815 1,858,565 1,802,028 1,495,133 Net change in fund balances 1,250,612$ (15,732)$ 5,262,935$ (4,974,079)$ (3,510,128)$ 7,794,010$ (698,084)$ 874,597$ 6,975,544$ 5,721,641$ Debt service as a percentage of noncapital expenditures 1.1%3.5%3.7%3.2%4.4%5.7%5.6%5.2%4.6%4.4% Source: Current and prior year's financial statements GASB 34 implemented in 2003 (modified accrual basis of accounting) For Years Ended December 31, Schedule 4 Town of Estes Park, Colorado Changes in Fund Balances, Governmental Funds 107 General Personal/ Fiscal Amusement/Merchandise Lumber &Professional Year Recreation Automotive Food (Retail)Lodging Building Services Utilities Total Sales Tax 2013*65,553 155,617 2,784,728 1,582,516 2,083,848 452,674 134,371 604,298 7,863,605 2014 77,638 180,808 3,640,784 2,233,404 2,896,359 521,716 174,221 680,645 10,405,574 2015 75,434 207,133 4,407,514 2,302,864 3,695,728 602,859 204,986 731,071 12,227,589 2016 85,086 244,733 4,852,342 2,372,937 3,903,203 595,912 211,821 746,250 13,012,284 2017 113,131 275,744 5,038,864 2,363,339 4,402,806 681,341 212,289 771,958 13,859,472 2018 97,563 283,633 5,506,167 2,692,364 4,764,050 702,690 244,331 785,261 15,076,059 2019 95,323 280,253 5,800,822 3,141,904 4,896,981 879,626 789,818 473,050 16,357,777 2020**96,815 252,344 5,280,932 3,175,428 4,152,606 1,075,819 355,518 757,449 15,146,911 2021 119,477 238,929 7,029,142 4,673,622 6,316,430 1,262,306 504,397 811,955 20,956,258 2022 104,812 280,175 7,630,779 4,766,670 6,913,106 1,453,020 583,098 925,081 22,656,741 Sales tax rate: increased from 4.00% to 5.00%, July 1, 2014 Source: Town of Estes Park Sales and Use Tax Reports *sales tax adversely affected by September 2013 flood ** sales tax adversely affected by the COVID-19 pandemic Schedule 5 Town of Estes Park, Colorado Sales Tax Revenue by Type of Industry For Years Ended December 31, 108 Total Total Direct Overlapping Fiscal Town of Sales Tax State of Larimer Sales Tax Year Estes Park Rate Colorado County Rate 2013 4.00%4.00%2.90%0.60%7.50% 2014*5.00%5.00%2.90%0.65%8.55% 2015*5.00%5.00%2.90%0.65%8.55% 2016 5.00%5.00%2.90%0.65%8.55% 2017 5.00%5.00%2.90%0.65%8.55% 2018 5.00%5.00%2.90%0.80%8.70% 2019 5.00%5.00%2.90%0.80%8.70% 2020 5.00%5.00%2.90%0.80%8.70% 2021 5.00%5.00%2.90%0.80%8.70% 2022 5.00%5.00%2.90%0.80%8.70% Source: Colorado Department of Revenue Taxation Division Overlapping RatesCity Direct Rate Schedule 6 Town of Estes Park, Colorado Direct and Overlapping Sales Tax Rates * City sales tax increased from 4.00% to 5.00% on July 1, 2014, as a result of April 2014 ballot issue As of December 31, 109 2013 2022 Top three categories (alphabetical) Food 2,784,728$ 7,630,779$ Lodging 2,083,848 6,913,106 Retail 1,582,516 4,766,670 Total:6,451,092 19,310,555 Aggregate all other categories 1,412,513 3,346,186 Total sales and use tax 7,863,605$ 22,656,741$ Top three categories as a percentage of total sales tax 82.04%85.23% Schedule 7 Town of Estes Park, Colorado Principal Sales Tax Categories Current and nine years ago For Years Ended December 31, 110 Power and Certificates Lease Lease Light and Power Power and Communications Total Percentage Fiscal of Purchase Purchase Capital Revenue Communications Revenue Bond Capital Water Construction 2020 USDA Water Primary of Personal Per Year Participation8 Agreement9 Premium9 Leases Bonds3 Revenue Bonds10 Premium10 Leases Loan4 Loan5 Bond Loans6 Government Income7 Capita7 2013 6,075,000 0 0 0 4,770,000 0 0 0 0 0 0 4,597,593 15,442,593 26.72%2,587 2014 5,705,000 0 0 0 4,510,000 0 0 0 0 0 0 4,330,819 14,545,819 24.31%2,390 2015 5,325,000 0 0 234,813 4,235,000 0 0 0 0 0 0 4,058,369 13,853,182 24.63%2,214 2016 4,935,000 0 0 178,887 3,950,000 0 0 0 0 0 0 3,780,243 12,844,130 23.55%2,019 2017 4,540,000 4,427,381 201,632 121,149 3,655,000 0 0 0 0 0 0 3,502,117 16,447,279 33.89%2,595 2018 4,135,000 4,203,062 189,446 61,540 3,350,000 0 0 0 0 0 0 3,218,315 15,157,363 28.59%2,386 2019 3,720,000 3,791,830 165,989 244,572 0 30,030,000 0 107,076 2,928,838 0 0 0 40,988,305 80.63%6,453 2020 3,295,000 3,559,951 142,510 208,461 0 29,660,000 3,340,253 91,530 2,633,684 0 543,145 0 43,474,533 79.04%6,765 2021 2,860,000 3,317,520 120,255 170,423 0 29,270,000 3,108,754 75,309 2,338,529 0 530,332 0 41,791,122 76.09%7,078 2022 2,410,000 3,064,057 99,363 130,486 0 28,870,000 2,875,321 52,025 2,037,699 54,376 517,096 0 40,110,423 71.41%6,842 1 Issued by Estes Park Urban Renewal Authority to refinance Series 1993 Bonds. Interest accrues at rates between 3.00-3.25%. 2 Issued by the Estes Park Building Authority to refinance 1990 Certificates of Participation. Interest accrues at rate of 5.50%. 3 2007 Light and Power Revenue Bonds issued to finance construction and equipping of a new substation, and to rebuild certain distribution lines and make other improvements to Town's L&P facilities. 1999 Revenue Bonds ($1,305,000 remaining in 2010) were paid in full during the year ending December 31, 2010. Interest accrues at 3.88%. 4 1997B Water Loan from the Colorado Water Resources and Power Development Authority (CWRPDA) obtained to finance improvements to water system. Interest accrues at rates between 3.80-5.00%. 5 2022 Water Construction Loan was obtained from CoBank to finance improvements to water system. Interest accrues at a daily variable interest rate. 6 2008A Water Loan was obtained from the CWRPDA to finance improvements to water system. Interest accrues at 3.26%. 7 See schedule 12 for personal income and population data. These ratios are calculated using personal income and population for the prior calendar year. 8 Certificates of Participation Series 2013 ($6,075,000) obtained to finance Multipurpose Event Center/Pavillion complex. Duration: 14 years, Interest rate: 2.43%. 9 Lease Purchase Financing Agreement dated 1-1-17 obtained to finance the Visitor Center Parking Garage. Duration: 15 years, Interest rate: 4.5%. 10 Issued Power and Communications Revenue Bonds Series 2019A &B to finance the municial broadband and smart grid buildout. Duration: 30 years, Interest rate: 2.362% - 2.988%. Source: Current and prior year's financial statements Governmental Activities Schedule 8 Town of Estes Park, Colorado Ratio of Outstanding Debt, by Type Business-Type Activities As of December 31, 111 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General bonded debt outstanding -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Certificates of Participation 6,075,000 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 Total 6,075,000 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 Per capita1 1,018$ 937$ 851$ 776$ 716.20 650.98 585.64 512.76 484.42 411.12 . Less: Amounts not subject to the statutory debt limit 6,075,000 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 Less: Amounts set aside to repay general debt - - - - - - - - - - 6,075,000 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 Total net debt applicable to debt limit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Legal debt margin2 5,357,761$ 5,194,916$ 5,838,622$ 5,877,432$ 6,248,723$ 6,284,768$ 7,238,652$ 7,249,531$ 7,601,799$ 7,481,925$ 1 See Schedule 12 for personal income and population data. These ratios are calculated using personal income and population for the prior calendar year. 2 The legal debt margin is the city's available borrowing authority. It is calculated from estimated actual property value as provided by Larimer County. For 2022, the computation is: $249,397,502 x 3% = $7,481,925. GASB 34 implemented in 2003 Schedule 9 Town of Estes Park, Colorado Ratio of General Bonded Debt Outstanding and Legal Debt Margin As of December 31, 112 Percentage Estimated Applicable Share of Debt To Overlapping Jurisdiction Outstanding Government Debt Direct: Town of Estes Park 5,703,906$ 100.00%5,703,906$ Overlapping: Northern Colorado Water Conservancy District 2,583,671 1.06%27,336 Park Hospital District 12,006,926 57.25%6,873,505 Park R-3 School District 12,920,000 52.00%6,718,400 Total 33,214,503$ 58.18%19,323,147$ Sources: documentation from entities listed above Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of Estes Park. This process recognizes that, when considering the Town's ability to issue and repay long-term debt, the entire debt borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore is responsible for repaying the debt, of each overlapping government. Schedule 10 Town of Estes Park, Colorado Direct and Overlapping Governmental Activities Debt As of December 31, 2022 113 Less:Net Fiscal Water Operating Available Year Revenues1 Expenses2 Revenue Principal Interest Coverage 2013 4,263,303 3,290,474 972,829 266,774 140,430 2.39 2014 4,087,720 3,165,030 922,690 266,774 136,335 2.29 2015 5,211,779 2,985,121 2,226,658 272,450 132,440 5.50 2016 5,219,482 3,255,765 1,963,717 278,126 128,668 4.83 2017 5,747,358 3,906,535 1,840,823 278,126 125,027 4.57 2018 6,846,182 3,848,853 2,997,329 283,802 120,357 7.42 2019 7,309,877 2,989,397 4,320,480 289,478 111,369 10.78 2020 6,870,008 3,339,270 3,530,738 299,394 106,701 8.69 2021 7,179,700 3,768,806 3,410,894 307,967 108,479 8.19 2022 7,491,878 3,054,623 4,437,255 314,066 101,659 10.67 Power & Less:Net Communications Operating Available Revenues Expenses Revenue Principal Interest Coverage 2013 14,373,679 11,746,547 2,627,132 255,000 194,719 5.84 2014 15,311,185 11,818,066 3,493,119 260,000 184,838 7.85 2015 14,721,092 11,963,511 2,757,581 275,000 174,763 6.13 2016 14,507,439 13,201,872 1,305,567 285,000 164,106 2.91 2017 16,475,414 13,858,488 2,616,926 295,000 153,063 5.84 2018 17,277,501 13,990,269 3,287,232 305,000 141,631 7.36 2019 20,031,160 13,089,751 6,941,409 320,000 129,812 15.43 2020 19,558,776 14,154,799 5,403,977 370,000 1,127,566 3.61 2021 20,840,077 15,626,771 5,213,306 390,000 1,158,710 3.37 2022 22,873,862 14,861,899 8,011,963 400,000 1,119,300 5.27 Source: Current and prior year's financial statements Power & Communications Revenue Bonds For Years Ended December 31, Schedule 11 Town of Estes Park, Colorado Pledged-Revenue Coverage Debt Service Debt Service Water Revenue Bonds 114 Fort Collins/ Total Median Per Capita Loveland, CO Fiscal Personal Family Personal Median School Unemployment Year Population1,3,5 Income4 Income1,3 Income1,3 Age1 Enrollment2 Rate3 1997 5,229 37,565 45 1,353 3.3% 1998 5,229 N/A 37,565 N/A 45 1,344 3.5% 1999 5,229 N/A 37,565 N/A 45 1,316 3.2% 2000 5,413 165,091,087 55,667 30,499 45 1,354 2.4% 2001 5,413 165,091,087 55,667 30,499 45 1,393 3.1% 2002 5,413 165,091,087 55,667 30,499 45 1,411 4.5% 2003 5,413 165,091,087 55,667 30,499 45 1,363 5.1% 2004 5,413 165,091,087 55,667 30,499 45 1,260 4.7% 2005 5,413 165,091,087 55,667 30,499 45 1,265 4.3% 2006 5,413 165,091,087 55,667 30,499 45 1,219 3.3% 2007 5,413 165,091,087 55,667 30,499 45 1,206 3.5% 2008 5,413 165,091,087 55,667 30,499 45 1,162 4.8% 2009 5,413 165,091,087 55,667 30,499 45 1,210 6.8% 2010 5,413 165,091,087 55,667 30,499 45 1,120 7.7% 2011 5,858 204,807,396 52,778 34,962 52 1,126 6.7% 2012 5,913 206,730,306 56,053 34,962 52 1,095 6.1% 2013 5,969 221,539,435 57,789 37,115 52 1,126 5.0% 2014 6,086 243,202,646 59,826 39,961 51 1,125 4.2% 2015 6,257 231,327,547 56,236 36,971 51 1,143 3.5% 2016 6,362 243,410,120 54,530 38,260 51 1,117 2.8% 2017 6,339 221,370,558 48,533 34,922 58 1,162 2.5% 2018 6,352 234,960,480 53,025 36,990 59 1,160 2.7% 2019 6,352 228,093,968 50,833 35,909 59 1,151 2.0% 2020 6,426 258,389,460 55,000 40,210 57 1,017 6.4% 2021 5,904 271,920,528 54,925 46,057 62 1,058 3.0% 2022 5,862 282,237,714 56,166 48,147 60.1 1,061 2.3% 1 2010 Census, 2013 www.census.gov factfinder. 2Park R-3 School district 3Data obtained from www.Larimer.org/compass or U.S. Bureau of Labor Statistics for Eastern & Southern Colorado Nonmetro area 4Total Personal Income derived from Per Capita Personal Income x Population 5Population numbers for 2012-13 are estimates as posted on www.census.gov Note: The Town of Estes Park implemented GASB 34 as of December 31, 2003 Schedule 12 Town of Estes Park, Colorado Demographic and Economic Statistics As of December 31, 115 # of # of full-time full-time equivalent equivalent 2012 employees 2022 employees 1 Estes Park Medical Center N/A Stanley Hotel 136 2 Estes Valley Recreation District N/A Estes Park Medical Center 288.75 3 Harmony Foundation N/A Town of Estes Park 163 4 Holiday Inn N/A Park School District R-3 168 5 Park School District R-3 N/A Rocky Mountain National Park 176 6 Rocky Mountain National Park N/A YMCA of the Rockies 128 7 Safeway N/A Harmony Foundation 83.5 8 Town of Estes Park 114 Safeway 89 9 YMCA of the Rockies N/A Estes Valley Recreation District 78 10 Stanley Hotel N/A Rocky Mountain Park Inn 47.5 Source: Town of Estes Park's Community Profile and local informal surveys. Schedule 13 Town of Estes Park, Colorado Principal Employers As of December 31, 116 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program General Government Judicial 1 1 1 1 1 1 0.5 0.5 0.5 0.5 Town Attorney1 2.00 2.00 2.00 2.00 Town Administration2 Town Administrator 5.00 5.00 5.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 Town Clerk 4.00 4.00 4.00 4.00 4.00 4.50 4.50 4.50 3.50 3.50 Human Resources3 1.00 2.00 Finance 7.00 8.00 9.00 10.00 10.00 9.00 8.75 8.75 9.13 9.00 Community Development 7.00 8.00 9.00 12.00 12.00 10.00 11.00 10.00 5.00 5.00 Police 30.00 32.00 33.00 34.00 36.00 37.00 38.71 38.71 38.13 40.71 Public Works 20.04 18.00 21.00 22.17 22.53 23.94 26.42 26.42 21.66 28.50 Community / Cultural Services Community Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Visitor Services Center 6.10 5.10 5.35 6.32 6.64 6.64 5.81 5.50 4.30 5.50 Senior Services 2.00 2.00 2.40 2.40 2.55 0.11 0.00 0.00 0.00 0.00 Special Events 4.00 5.00 8.66 12.00 12.00 11.50 13.15 14.12 13.03 13.03 Transportation 0.00 1.00 1.00 1.00 1.00 1.25 0.00 0.00 0.00 0.00 Museum 3.00 3.00 3.00 3.00 3.00 3.00 3.21 3.00 3.00 3.00 Enterprise Light & Power 21.00 21.68 21.68 25.00 25.33 26.00 26.00 31.00 30.00 38.00 Water 12.00 12.00 12.00 13.75 15.00 17.31 15.12 18.12 20.00 21.08 Internal Services Information Systems (IT)3.00 2.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 Fleet Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 TOTALS 128.14 130.78 143.09 158.64 163.05 162.25 167.17 174.62 163.25 183.82 2.64%2.06%9.41%10.87%2.78%-0.49%2.53%7.62%0.62%9.96% 1Town Attorney Department was added in 2019. 2Town Adminstration was separated between the Town Administrator's Office and the Town Clerk's Office in 2012. 3Human Resources previously reported under Town Clerk source: Town of Estes Park Human Resources Department, Annual Town Budget Schedule 14 Town of Estes Park, Colorado Full-time Equivalent Employees by Function/Program As of December 31, 117 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police PD Incidents 16,260 17,880 14,591 13,446 16,736 14,048 16,691 12,716 14,774 13,272 PD Report Numbers 1,690 1,728 1,903 1,886 1,743 1,748 1,653 1,405 1,534 1,489 Total Arrests 262 315 297 174 155 195 205 113 102 111 Number of alloted PD Employees 29 32 32 32 32 33 37 37 37 32 Number of alotted Sworn Employees 19 20 20 20 20 21 22 22 22 23 Number of alotted Civilian Employees 10 12 12 12 12 12 15 15 15 9 Total Phone Calls 53,514 46,309 47,407 48,215 50,309 50,833 50,324 48,135 49,353 45,561 911 Calls 4,488 4,813 5,250 5,071 5,088 5,180 5,428 5,466 6,453 5,145 Total Incidents Police/Fire/Ambulance 15,656 20,235 17,154 20,295 19,587 16,435 5,428 14,768 16,956 15,476 *data lost during phone conversion Fire Number of volunteers 33 38 32 43 43 45 45 39 35 40 Emergency Responses 650 596 618 685 742 621 615 570 570 673 Fire insurance rating ISO PPC 4 ISO PPC 4 ISO PPC 4 ISO PPC 4 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 Utilities-Electric No. of accounts 10,473 10,540 10,623 10,674 10,418 10,813 10,875 10,875 11,067 11,142 Wind Power customers 157 145 135 128 133 140 124 122 113 109 Substation Capacity (MW)100 100 100 100 100 100 100 100 100 100 Average daily consumption 345,348 348,423 342,382 346,496 341,479 344,698 363,252 345,995 363,368 368,133 Annual consumption 126,052,183 127,174,378 124,969,364 126,470,866 124,639,921 125,814,757 132,586,967 126,288,254 132,629,252 134,368,663 Distribution system (in miles)300 300 300 300 300 300 300 300 300 300 Number of Street Lights 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Utilities-Water No. of accounts 5,087 5,154 5,197 5,228 5,027 5,368 5,536 5,536 5,600 5,600 Plant Capacity (gallons)7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 Average daily consumption (gallons)1,078,848 1,082,184 1,098,997 1,172,322 1,128,180 1,192,523 1,127,274 1,116,770 1,143,920 1,189,865 Annual consumption (gallons)393,779,690 394,997,119 401,133,914 427,897,375 411,785,866 435,270,803 411,455,154 407,621,094 417,530,905 434,300,786 Schedule 15 Town of Estes Park, Colorado Operating Indicators by Function/Program As of December 31, 118 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Schedule 15 Town of Estes Park, Colorado Operating Indicators by Function/Program As of December 31, Town Government Elected officials 7 7 7 7 7 7 7 7 7 7 Appointed officials 7 7 7 7 7 7 7 7 7 7 Full-time employees 128 121 131 133 136 141 138 153 152 176 Part-time employees 7 7 7 12 13 13 9 8 9 1.5 Seasonal employees 49 49 49 36 43 37 35 28 9 13 Building Permits 496 616 716 559 814 829 781 577 541 800 Culture and Recreation Museum 1 1 1 1 1 1 1 1 1 1 Senior Center 1 1 1 1 1 0 0 0 0 0 Event Center 0 0 1 1 1 1 1 1 1 1 Convention Center 1 1 1 1 1 1 1 1 1 1 Local Marketing District 1 1 1 1 1 1 1 1 1 1 Other Miscellaneous Data Hotels, Motels, B&Bs **124 124 124 146 137 132 115 107 103 161 Financial Institutions 5 5 5 5 5 4 4 4 4 4 Newspapers 2 2 2 2 2 2 2 2 2 2 Theaters 2 2 2 2 2 2 2 2 2 2 Bus/Taxi Companies 2 2 2 2 2 2 2 2 2 2 Radio Stations 1 1 1 1 0 0 0 0 0 0 Hospitals 1 1 1 1 1 1 1 1 1 1 Churches 18 18 18 21 19 19 19 19 19 19 State highways (Highways 7, 34 and 36)3 3 3 3 3 3 3 3 3 3 Other Miscellaneous Data No. of Registered Voters 4,517 4537 4040 4040 4813 4810 4408 4930 4930 4329 . Facilities and services not included in the reporting entity: Education-Park School District R-3 (enrolled) Estes Park High School (9-12)332 322 331 325 334 333 351 371 375 326 Estes Park Middle School (6-8)240 249 259 274 281 274 267 225 227 228 Estes Park Elementary School (K-5)524 521 553 518 488 475 477 394 424 507 Estes Park Options & Home Schooled 30 33 24 36 53 47 56 27 32 0 Parks and Recreation Estes Valley Recreation and Park District 1 1 1 1 1 1 1 1 1 1 Source: Local authorities including: Local Marketing District, EVRPD, Park School District R-3, Dex Onlince Listings 119 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 12 15 15 15 15 15 16 16 16 16 Fire Protection Stations 2 2 2 2 2 2 2 2 2 2 Fire Rating ISO PPC 4 ISO PPC 4 ISO PPC 4 ISO PPC 4 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 Public Works Area in Square Miles 6.88 6.88 6.88 6.88 6.88 6.88 6.88 6.88 6.88 6.88 Utilities Water mains (miles)100 100 100 100 100 100 100 100 100 100 Fire Hydrants 681 683 684 714 717 740 747 752 757 768 Water Treatment Plants 2 2 2 2 2 2 2 2 2 2 Number of Street Lights 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Electric Substations 2 2 2 2 2 2 2 2 2 2 Source: Town of Estes Park departmental data, Community Profile Schedule 16 Town of Estes Park, Colorado Capital Asset Statistics by Function/Program As of December 31, 120 Town of Estes Park, Colorado Compliance Section 121 122 Certified Public Accountants & Management Consultants 200 E 7th Street, Suite 300 Loveland, CO 80537 970-667-5316 970-667-2269 www.HaynieCPAs.com An Association of Independent Accounting Firms INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Trustees Town of Estes Park, Colorado We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of Town of Estes Park, Colorado, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise Town of Estes Park, Colorado’s basic financial statements, and have issued our report thereon dated June 28, 2023. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Town of Estes Park, Colorado’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Town of Estes Park, Colorado’s internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Estes Park, Colorado’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Town of Estes Park, Colorado’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 123 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Littleton, Colorado June 28, 2023 124 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Trustees Town of Estes Park, Colorado Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the Town of Estes Park, Colorado’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of Town of Estes Park, Colorado’s major federal programs for the year ended December 31, 2022. Town of Estes Park, Colorado’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, Town of Estes Park, Colorado, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Town of Estes Park, Colorado and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Town of Estes Park, Colorado’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Town of Estes Park, Colorado’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Town of Estes Park, Colorado’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. 125 The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Town of Estes Park, Colorado’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Town of Estes Park, Colorado’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of Town of Estes Park, Colorado’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Town of Estes Park, Colorado’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Littleton, CO June 28, 2023 126 Town of Estes Park, Colorado Supplemental Information Schedule of Findings and Questioned Costs for the Year Ended December 31, 2022 1. Summary of Auditor's Results Type of report issued on the financial statements: Unmodified Material weaknesses in financial reporting internal control noted: None Significant deficiency(s) identified that are not considered to be material weaknesses in financial reporting: None identified Material noncompliance noted: None Material weaknesses in internal control over major programs: None Significant deficiency(s) identified that are not considered to be material weaknesses over major programs: None identified Type of report issued on compliance for major programs: Unmodified Audit findings required to be reported: None The following programs are considered to be major: 20.526 Bus and Bus Facilities Formula Program (Bus Program) $404,643 Dollar threshold used to distinguish Type A and Type B programs: $750,000 Risk type qualification: Not low-risk 2. Findings relating to the financial statements which are required to be reported in accordance with Government Auditing Standards. None 3. Findings and questioned costs for Federal Awards None 4. Summary Schedule of Prior Audit Findings None 127 Federal Assistance Listing Pass-through Entity Federal Agency/Pass-through Entity/Program or Cluster Number Identifiying Number Amount Federal Transit Cluster-Cluster Department of Transportation 19-HTR-ZL-00209 - ELTRL2 Bus and Bus Facilities Formula Program (Bus Program) 20.526 21-HTR-ZL-00293 / PO 491002595 - ELTRCH-CHRG STN 404,643 Total Department of Transportation 21-HTR-ZL-00308 / PO 491002610 - ELTRCH-DESIGN 404,643 Total Federal Transit Cluster-Cluster 404,643 Other Programs Department of the Interior WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Grants 15.507 Proj # SWEB-031 (PO Line - R-DO-2021-000317 SWEP TOEP)47,164 Total Department of the Interior 47,164 United States Department of Justice Bulletproof Vest Partnership Program 16.607 N/A 2,278 Total Bulletproof Vest Partnership Program 2,278 Equitable Sharing Program 16.922 N/A 6,430 Total Equitable Sharing Program 6,430 Total United States Department of Justice 8,708 Department of Transportation Formula Grants For Rural Areas Formula Grants For Rural Areas 20.509 20-HTR-ZL-03243 / PO 491002209 - COVTRN 374,842 Total Formula Grants For Rural Areas 22-HTR-ZL-00074 / PO 491002726 - CRRSAA 374,842 Total Department of Transportation 22-HTR-ZL-00205 / PO 491002884 - *TR22 374,842 Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds 21.027 State Of Colorado, Department of Local Affairs 5,783 Total Department of the Treasury TRAUNCHE 1 & 2 - TBDOLA (BROADBAND)5,782 Total Other Programs 436,497 Total Expenditures of Federal Awards $ 841,140 The accompanying notes are an integral part of this schedule Town of Estes Park, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2022 128 Notes to the Schedule 1. 2. 3. Town of Estes Park, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2022 Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Town of Estes Park under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Estes Park it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Town of Estes Park. Town of Estes Park Colorado has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 129