Loading...
HomeMy WebLinkAbout0 MEMO Audit Committee 2025-10-01TOWN OF ESTES PARK, COLORADO ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended December 31, 2024 Town of Estes Park, Colorado Annual Comprehensive Financial Report For the year ended December 31, 2024 Prepared by the Finance Department The Town of Estes Park is committed to providing equitable access to our services to all Coloradoans. Our ongoing accessibility effort works towards being in line with the Web Content Accessibility Guidelines (WCAG) version 2.1, level AA criteria. We welcome comments on how to improve this Report’s accessibility for users with disabilities and for requests for accommodations to any Town of Estes Park services. For assistance, please email us at digitialaccessibility@estes.org 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 Auditors’ Report ............................................................................................................. 10-13 Management's Discussion and Analysis ............................................................................................... 14-26 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ....................................................................................................................... 27 Statement of Activities ...................................................................................................................... 28-29 Governmental Funds Balance Sheet .......................................................................................................................................... 30 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................ 31 Statement of Revenues, Expenditures and Changes in Fund Balances ................................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................ 33 Proprietary Funds Statement of Net Position ...................................................................................................................... 34 Statement of Revenues, Expenses and Changes in Net Position ............................................................ 35 Statement of Cash Flows ......................................................................................................................... 36 Notes to Financial Statements ................................................................................................................. 37-89 Required Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual General Fund ................................................................................................. 90 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual Street Improvement Fund .............................................................................. 91 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual Workforce Housing/Childcare Lodging Tax Fund ......................................... 92 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 ................. 93 Schedules of Changes in the Town’s OPEB Liability and Related Ratios .............................................. 94 Other Supplementary Information Combining, Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds – Combining Balance Sheet ............................................................................................................ 95 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 96 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Governmental Funds Community Reinvestment Fund .................................................................................................. .97 Open Space Fund ......................................................................................................................... 98 Conservation Trust Fund ............................................................................................................. 99 Emergency Response Fund ........................................................................................................ 100 Community Center Fund ........................................................................................................... 101 Trails Expansion Fund ............................................................................................................... 102 Parking Services Fund ............................................................................................................... 103 Wildfire Mitigation Fund ............................................................................................................. 104 Trails Sales Tax Extension Fund ................................................................................................. 105 Stormwater Fund ......................................................................................................................... 106 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Proprietary Funds Power and Communications Fund .............................................................................................. 107 Water Fund ................................................................................................................................ 108 Workforce Housing Linkage Impact Fee..................................................................................... 109 Combining, Individual Fund Financial Statements and Schedules Internal Service Funds – Combining Statement of Net Position ....................................................................................... 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ............................................................................................................. 111 Combining Statement Cash Flows ............................................................................................... 112 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Internal Service Funds Fleet Maintenance Fund ............................................................................................................ 113 Vehicle Replacement Fund ......................................................................................................... 114 Information Technology Fund ................................................................................................... 115 Medical Insurance Fund ............................................................................................................ 116 Risk Management Fund ............................................................................................................. 117 State Compliance Local Highway Finance Report ........................................................................................... 118-119 Statistical Section Financial Trends Net Position ................................................................................................................................. 120 Changes in Net Position ...................................................................................................... 121-122 Fund Balances – Governmental Funds ....................................................................................... 123 Changes in Fund Balances – Governmental Funds .................................................................... 124 Revenue Capacity Sales Tax Revenue by Type of Industry ..................................................................................... 125 Direct and Overlapping Sales Tax Rates .................................................................................... 126 Principal Sales Tax Categories .................................................................................................. 127 Debt Capacity Ratios of Outstanding Debt by Type .......................................................................................... 128 Ratios of General Bonded Debt Outstanding and Legal Debt Margin ...................................... 129 Direct and Overlapping Governmental Activities Debt ............................................................ 130 Pledged – Revenue Coverage ..................................................................................................... 131 Demographic and Economic Information Demographic and Economic Statistics ........................................................................................ 132 Principal Employers .................................................................................................................. 133 Operating Information Full-Time Equivalent Employees by Function/Program ........................................................... 134 Operating Indicators by Function/Program ......................................................................... 135-136 Capital Assets Statistics by Function/Program ............................................................................ 137 Compliance Section Reports to Governmental Agencies Independent Auditors’ 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 ....................................... 138-139 Independent Auditors’ Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance .............................. 140-141 Schedule of Findings and Questioned Costs ........................................................................ 142-144 Schedule of Expenditure of Federal Awards .............................................................................. 145 Notes to Schedule of Expenditures of Federal Awards ............................................................. 146 Introductory Section 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, 2024. Mayor Elected 2024 Gary Hall Mayor Pro Tem Re-elected 2022 Marie Cenac Trustees Elected 2024 Frank Lancaster Elected 2022 Kirby Hazelton Elected 2024, partial term Bill Brown Re-elected 2024 Cindy Younglund Elected 2024 Mark Igel Staff Town Administrator Travis Machalek Deputy Town Administrator Jason Damweber Town Clerk, Dir. of Admin Services Jackie Williamson Interim Finance Director Duane Hudson Chief of Police Ian Stewart Director of Community Development Steve Careccia 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 2024 ORGANIZATIONAL CHART  TOWN OF ESTES PARK   ORGANIZATIONAL CHART      CITIZENS  MAYOR AND TRUSTEES  Municipal Judge Town Attorney  Utilities Police Community  Services  Power &  Communication  Water  Planning  Building Town Clerk  HR  Engineering  Parks  Streets  Stormwater  Facilities  Parking and  Transit  Deputy Town Administrator Public  Information  Town Administrator  Community  Development  Town  Clerk’s  Office  Public  Works  Events Complex  Visitor Services  Patrol  Communications  (Dispatch)  Community Svc  (Restorative  Justice)  Code Enforce.  Risk Management  Information   Technology  Fleet  Facilities  Internal  Services  Museum  Workforce  Housing /  Childcare  Accounting  Payroll  Utility Billing  Budget  Finance  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, 2023 Executive Director/CEO 3 Finance Department 970‐586‐5331  170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG September 29, 2025  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, 2023, 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, 2024.  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 970‐586‐5331  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 5,824 (2023 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 2024.  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”), the Estes Park Housing  Authority (“EPHA”) 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 2010‐24, and currently does not have plans or agreements in place for 2025.   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 5.5% lodging tax.   The 2% lodging tax approved in 2008 is used to promote and advertise Estes Park as a vacation  destination, a task previously borne by the Town.  The remaining 3.5% lodging tax was approved  in 2022 to provide funding for workforce housing and childcare needs.  This additional funding,  less a small administrative fee, is transferred to the Town of Estes Park for workforce housing  and childcare programs.  The  Town of Estes Park then transfers a significant portion of the  funding to EPHA for workforce housing programs.  This significant financial arrangement resulted  5 Finance Department 970‐586‐5331  170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG in EPHA becoming part of the Town’s reporting entity beginning in 2023.   VEP  is listed in the  ACFR as the Local Marketing District component unit while EPHA is listed as the Housing Authority  component unit.  Additional information on these entities can be found in Note 1 in the Notes to  the Financial Statements.    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.  6 Finance Department 970‐586‐5331  170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG Local economy    The COVID‐19 global pandemic reached Colorado in March 2020, causing significant business  disruptions. Despite these challenges, 2020 sales tax collections ended the year only 7.4%  below the record levels of 2019. The local economy rebounded steadily through 2021, 2022,  and 2023 before stabilizing in 2024. Sales tax revenues set new records in 2022 and 2023 at  $22,181,934 and $22,880,811, respectively. In 2024, collections declined by approximately 3%  from the prior year’s record, totaling $22,181,934, a decrease largely attributed to road  construction and adverse weather conditions.  In April 2014, citizens approved a Ballot issue (1A) that implemented a 1% sales tax increase, sun‐ setting in June 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 2024, $4,4,28,597 in  sales tax was collected in these special revenue funds.  In April 2024, voters approved a renewal of the 1% sales tax increase, extending it through June  2034. The measure included modifications to the authorized uses of the tax revenues to better  align with evolving community priorities.  The Fort Collins/Loveland, Colorado unemployment rate increased from 2.8% to 4.2% through  December 2024 (source:  U.S. Bureau of Labor Statistics). The Median Family Income in Estes Park  (source: U.S. Census Bureau Profile) was estimated at $73,313 in 2024.  Meanwhile, the Denver‐ Aurora‐Lakewood Colorado CPI (consumer price index) decreased from 5.2% in 2023 to 2.3% in  2024.  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 with over 4,000 customers signed up and receiving  service as of the date of this letter.    7 Finance Department 970‐586‐5331  170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG 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.    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 2024.     Major initiatives  Several major street improvement projects are in progress, with some extending into 2024 and  beyond, including the Cleave Street and Graves Avenue reconstruction and multiple  enhancements to the Fall River Trail system. In the utilities sector, expansion of the Trailblazer  Broadband fiber network continues through the Power and Communications Fund. Water system  upgrades are also advancing, including improvements to the Bureau Area system, the Thunder  Mountain water tank, and modernization of the former Prospect Mountain Water District  distribution system. The latter project is partially supported by a USDA grant and loan package,  with construction anticipated to continue into late 2025.  Another major initiative came about with the renewal of the 1% sales tax that was set to expire  June 2024.  One  of the changes with the renewal was dedication of a portion of these sales tax  revenues to a new Stormwater Fund in 2024.  This funding is being used to make flood mitigation  improvements along the waterways within the Town.  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  8 Finance Department 970‐586‐5331  170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG 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, 2023.  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.    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, Amy Stoddard and Duane  Hudson.  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,  Tammy Zimmerman  Finance Director  9 Financial Section Independent Auditors’ 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, each major fund, the discretely presented component units, and the aggregate remaining fund information of the Town of Estes Park, Colorado (the “Town”), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statem ents as listed in the table of contents. In our opinion, based on our audits and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the discretely presented component units, and the aggregate remaining fund information of the Town, as of December 31, 2024, 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. We did not audit the financial statements of the Estes Park Housing Authority, which represent 29%, respectively, of the assets, 10% of the net position, and 11% of the revenues of the primary government as of December 31, 2024. Those statements were audited by other auditors whose report has been furnished to us, and our opinion insofar as it relates to the amounts included for Estes Park Housing Authority, is based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with 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. Our responsibilities under those standards are further described in the Auditors’ 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. 10 Emphasis of a Matter As discussed in Note 14, beginning net position was restated as a result if the implementation of GASB101 and to correct an error in the measurement subscription based information technology arrangement asset and liabilities. 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. Auditors’ 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 auditors’ report that includes our opinions. 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 (GAAS) and Government Auditing Standards (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. 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 Government Auditing Standards, 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. 11 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 and analysis, the budgetary comparison information, and the pension and other post-employment retirement benefit 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, the budgetary comparison schedules, 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. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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, the budgetary comparison schedules, 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 fairly stated, in all material respects, in relation to the basic financial statements as a whole. 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 auditors’ 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 12 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 September 29, 2025, on our consideration of the Town’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 the Town’s internal control over financial reporting and compliance. Littleton, Colorado September 29, 2025 13 Town of Estes Park, Colorado Management's Discussion and Analysis December 31, 2024 Town of Estes Park, Colorado  MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2024  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, 2024. 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 2024 by $201.2 million ($104.6 million in governmental activities net position and $96.6 million in business‐type activities net position). Of the governmental activities net position total, $20.5 million, or 19.6%, is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. Similarly, $33.4 million, or 34.6%, of business‐type activities net position 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 $13.5 million, or 7.2%, from 2023 to 2024, down from the $24.2 million increase from 2022 to 2023.   Net position of the governmental activities increased $4.7 million compared to the $10.0 million increase in 2023. Net position of the Town’s business‐type activities increased $8.7 million compared to the $14.2 million increase in 2023. 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, decreased $5.5 million, or 6.7%, to $75.6 million compared to 2023. Governmental activities revenues decreased $3.7 million, or 9.2%, to $36.6 million, while revenues of business‐type activities decreased $1.8 million, or 4.4%, to $39.0 million compared to 2023. The total expenses of all the Town’s programs, excluding transfers, increased $4.1 million, or 7.2%, to $61 million compared to 2023. The expenses of governmental activities programs increased $0.9 million, or 2.9%, to $32.6 million, while the expenses of business‐type activities increased $3.2 million, or 12.7%, from 2023 to $28.3 million. 14 As of December 31, 2024, the Town’s governmental funds reported a combined ending fund balance of $30.2 million.  Approximately 14%, or $4.3 million, 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 with 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, the Estes Park  Housing Authority and the Local Marketing District Visit Estes Park (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.   The Estes Park Housing Authority is considered part of the reporting entity due to a  significant financial benefit from the workforce housing programs funded by the use of lodging taxes and  has been discretely presented in the Town’s financial statements as the Housing Authority.  15 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 ten 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, the Street  Improvement Fund, and the Workforce Housing 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 16 governmental activities in the government‐wide financial statements. Internal service funds are combined  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 2024 2023 2024 2023 2024 2023 Current and other assets 43,071,474$      39,701,006$      46,297,172$      43,278,058$      89,368,646$     82,979,064$      Capital assets 77,197,054        74,373,293        97,067,184  88,825,278  174,264,238  163,198,571    Total assets 120,268,528    114,074,299    143,364,356  132,103,336  263,632,884  246,177,635    Deferred outflows of resources 2,869,983   3,353,944  2,379,693   3,189,548  5,249,676     6,543,492    Long‐term liabilities 10,039,504   11,034,779  38,262,160  38,016,046  48,301,664  49,050,825    Other liabilities 7,687,005   5,780,943  10,752,641  9,155,169  18,439,646  14,936,112    Total liabilities 17,726,509   16,815,722  49,014,801  47,171,215  66,741,310  63,986,937    Deferred inflows of resources 801,159   753,122   103,917  268,521    905,076   1,021,643    Net position: Invested in capital assets 72,440,151   69,375,534  61,902,612  55,793,657  134,342,763  125,169,191    Restricted 11,649,013   8,218,834  1,250,000   1,250,000  12,899,013  9,468,834    Unrestricted 20,521,679   22,265,031  33,472,719  30,809,491  53,994,398  53,074,522    Total net position 104,610,843$    99,859,399$      96,625,331$      87,853,148$      201,236,174$      187,712,547$      Governmental Activities Business‐type Activities Total Primary Government 17 Analysis of Net Position  Table 1 presents an analysis of the Town’s net position as of December 31, 2024.  The Town’s assets and  deferred outflows of resources exceeded liabilities and deferred inflows of resources by $201.1 million at  the close of December 31, 2024.  By  far the largest portion of the Town’s net position (67%) 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 $9.2 million, or 7%, compared to 2023. Much of this change is  attributable to acquisition of assets, debt retirement, asset retirements, current depreciation and use of  bond proceeds.   Some  of the more significant asset acquisitions include $2.6 million in street  improvements, $0.4 million in broadband construction, $1.2 million in trail improvements, and $8.6  million in water system improvements.  Construction in progress decreased $5.6 million for assets placed  in service in 2024.  Asset retirements were minimal and depreciation expense increased $1.3 million to a  total of $7.9 million for 2024. Other changes include expenditure of capital related long term debt  proceeds of $267 thousand and retirement of capital related long term debt of $2.1 million.  An additional 6% of the Town’s net position ($12.9 million) represents resources that are subject to  external restrictions on how they may be used. The remaining balance of unrestricted net position ($53.8  million) may be used to meet the government’s ongoing obligations to citizens and creditors.   Restricted net position increased from 2023, primarily due to accumulation of unused funding in the  Street Improvement Fund, the new Stormwater Improvement Fund and the Open Space Fund for future  projects.   Unrestricted net position increased by $920 thousand in total.   Governmental  Activities  unrestricted net position decreased by $1.7 million due to large capital expenditures during the year and  Business‐type Activities unrestricted net position increased $2.6 million due to net income in the utility  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 $5.2 million 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 $14.6 million during 2024, less  $1.09 million restatement for GASB Statement 101, Compensated Absences. This net increase of $13.5  million is explained in the governmental and business‐type activities discussions below.   18 Governmental Activities   Net position of governmental activities increased by $5.4 million during 2024, accounting for 37% of the  total increase in the Town’s net position. This increase was $4.6 million less than the $10.0 million increase  in net position for 2023.  During 2024, governmental revenues decreased by $3.7 million compared to 2023. This decrease is  primarily due to a $3.2 million decrease in grants related to the US HWY 36/Community Drive roundabout  and the Fall River Trail projects.    Total governmental expenses for 202 increased by $0.9 million compared to 2023.  The  Town created a  new Internal Services Department in 2024 resulting in some reallocation of expenses between public  works, public safety and general government activities.  Much of the overall increase is due to decreased  personnel vacancies in 2024 and smaller cost increases throughout Town operations.   Table 2 ‐ Changes in Net Position 2024 2023 2024 2023 2024 2023 Program revenue: Charges for services 2,611,917$            2,874,011$            33,285,711$           33,221,897$         35,897,628$            36,095,908$             Operating grants and contributions 686,610   209,498         ‐        ‐      686,610    209,498          Capital grants and contributions 1,713,146        4,943,284     3,906,715    5,656,675  5,619,861         10,599,959     General revenue: Sales taxes 22,025,533     22,855,635   117,457       ‐      22,142,990       22,855,635     Lodging taxes 5,650,243        5,309,126     ‐        ‐      5,650,243         5,309,126       Property taxes 489,746   455,266         ‐        ‐      489,746    455,266          Franchise taxes 669,283   651,095         ‐        ‐      669,283    651,095          Use taxes 376,387   427,507         ‐        ‐      376,387    427,507          Other taxes 67,663     57,909    ‐        ‐      67,663       57,909    Investment income 1,166,121        1,151,361     1,433,061    1,507,437  2,599,182         2,658,798       Gain (Loss) on disposal of capital assets ‐    ‐  ‐        ‐      ‐      ‐    Miscellaneous 1,107,194        1,316,029     275,880       411,805      1,383,074         1,727,834            Total revenues 36,563,843     40,250,721   39,018,824         40,797,814       75,582,667       81,048,535     Governmental activities:   General government 12,455,441     10,492,265   ‐        ‐      12,455,441       10,492,265       Public safety 9,275,180        7,318,583     ‐        ‐      9,275,180         7,318,583         Public works 4,831,788        7,547,831     ‐        ‐      4,831,788         7,547,831         Culture and recreation 5,911,116        6,184,813     ‐        ‐      5,911,116         6,184,813         Interest on long‐term debt 169,036   184,638         ‐        ‐      169,036    184,638          Business‐type activities:   Power and Communications ‐    ‐  20,557,673         19,545,260       20,557,673       19,545,260       Water ‐    ‐  6,261,377    5,596,567  6,261,377         5,596,567         Workforce Housing Linkage Impact Fee ‐    ‐  1,507,929    ‐      1,507,929         ‐      Total expenses 32,642,561     31,728,130   28,326,979         25,141,827       60,969,540       56,869,957     Excess before transfers 3,921,282        8,522,591     10,691,845         15,655,987       14,613,127       24,178,578     Transfers In (Out)1,511,148        1,496,808     (1,511,148)   (1,496,808)        ‐      ‐    Increase in net position 5,432,430        10,019,399   9,180,697    14,159,179       14,613,127       24,178,578     Net position, beginning of year 99,859,399     89,840,000   87,853,148         73,693,969       187,712,547     163,533,969         Restatement (680,988)          ‐  (408,514)      ‐      (1,089,502)        ‐    Net position, end of year 104,610,841$        99,859,399$          96,625,331$           87,853,148$         201,236,172$         187,712,547$           Governmental Business‐type Total Primary Government Program expenses (includes indirect expense  allocation): 19 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 (60%),  followed by lodging taxes, charges for services and capital grants and contributions.  Net Position increased $4.7 million during the current fiscal year. Contributing factors were discussed  earlier in this section.  $0 $5,000 $10,000 $15,000 General Govt Public Safety Public Works Culture and Recreation Interest on  LT Debt Th o u s a n d s Chart  1:  2024 Expenses and Program Revenues ‐ Governmental Activities Prog Rev Expenses Charges for  services 7% Operating grants  and contributions 2% Capital grants and  contributions 5% Sales taxes 60% Lodging taxes 16% Property taxes 1% Franchise  taxes 2% Use  taxes 1% Other taxes 0% Investment income 3% Miscellaneous 3% Chart 2:  2024 Revenues by  Source ‐Governmental  Activities 20 Business‐type Activities  Net position in business‐type activities increased $8.6 million in 2024.   This increase was $5.6 million or  39%, less than the $14.2 million increase in net position in 2023.   Total business‐type revenues decreased $1.8 million, or 29%, compared to 2023. This decrease is primarily  due to a reduction in capital grant proceeds received in 2024.        Expenses of business‐type activities increased $3.3 million, or 13% compared to 2023.   Power  and  Communication depreciation expense increased $0.9 million.  In 2024, the Workforce Housing Linkage  Impact Fee fund expended $1.5 million (the fund equity accumulated over several years) on a workforce  housing project in partnership with the Estes Park Housing Authority.  The rest of the change is due to  numerous smaller cost increases.  $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Light and Power Water Workforce Housing Linkage Impact Fee Th o u s a n d s Chart 3:  2024 Expenses and Program Revenues ‐Business‐type  Activities Prog Rev Expenses Chgs for   services 85% Capital grants 10% Sales Tax 0% Invest. income 4% Misc. 1% Chart  4:  2024 Revenue by  Source ‐ Business‐type Activities 21 As can be seen from Charts 3 and 4, the Town’s Power and Communications utility and Water utility  account for most of the Town’s business‐type activities. For 2024, charges for services accounted for the  largest share of revenues at 85%.  The second largest category was capital grants at 10% of revenues.  The  Water Fund had the majority of grant revenues, including use of $3.8 million in USDA funding for the  Prospect Mountain waterline replacement project.  The Power and Communications Fund and the Water Fund transferred a total of $1.5 million out to  Governmental Activities in 2024 (General Fund).  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 Dec 31, 2024, the Town’s governmental funds reported combined ending fund balances of $30.2  million, an increase from $27.1 million at the end of 2023.  Approximately 14% 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 $4.3 million ($5.5 million in 2023). 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 2024 is 16%, a decrease from 2023’s ratio of 21%.  As  discussed elsewhere in this document, sales tax revenues have decreased approximately 3% in 2024.  The  General Fund operating costs increased by $1.0 million, accounting for much of the decrease in  unassigned fund balance in 2024.  The Community Reinvestment Fund is the Town’s capital project fund and funding is transferred from the  General Fund based on the planned capital projects.  Significant capital projects were completed in 2024  while several other projects were started but not completed and will roll forward into 2025.   The   Community Reinvestment fund balance is to be used for these projects, increasing slightly from $3.9  million at the end of 2023 to $5.0 million at the end of 2024.     The Street Improvement Fund was created by the 1% sales tax initiative renewed in April 2024.  In 2024,  expenditures were primarily for street repairs, a few overlay projects, and work on the Cleave Street major  rehabilitation project.  Fund balance grew to $6.8 million as the Cleave Street project continues on into  2025.  22 The Workforce Housing Lodging Tax Fund was new in 2023 and accounts for the receipt and expenditure  of the Town’s share of the local lodging taxes which were increased by an election in 2022 for workforce  housing and childcare expenses.  The Town has an agreement with the Housing Authority to help develop  and manage workforce housing facilities.  The magnitude of this arrangement resulted in the Housing  Authority becoming a component unit of the Town’s reporting entity.  Fund balance at the end of 2024  was $520,944.  The Community Center Fund, one of the “Other Governmental Funds”, was created by the 1% sales tax  initiative approved in April 2014 and expired June 30, 2024.  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 2024, the Community Center Fund remitted $454,610 in accumulated sales tax monies to EVRPD  for that purpose.  Collection and remittance of these sales taxes is expected to end later in 2025 as  delinquent returns are collected.  The Emergency Response System Fund which was created by the 1% sales tax initiative approved in April  2014, expired on June 30, 2024.  This fund primarily reflected debt service on a radio replacement lease  purchase. Fund balance grew as sales tax revenues exceeded expenditures in 2024.  Collection of these  sales taxes is expected to end later in 2025 as delinquent returns are collected.  The Trails Expansion Fund is one of the funds created by the 1% sales tax initiative approved in April 2014.   This was renewed in April 2024 with some minor eligible usage changes and the revenues subsequent to  June 30, 2024, are accounted for in the Trails Improvement (Sales Tax) Extension Fund.  During 2024,  construction on the active phases of Fall River Trail improvement project proceeded, utilizing much of the  fund balance accumulated over the last few years as planned. As a result, fund balance in the Trails  Expansion Fund decreased by $7,617 to $385,778 at year end.  The new Trails Improvement (Sales Tax)  Extension Fund had fund balance of $102,525.   In 2024, the Open Space Fund had some minor project expenditures of $155,016.  As of Dec 31, 2024, the  Open Space Fund had accumulated $1.8 million in fund balance to be used for a future project.  In the April 2024 sales tax election, a portion of the funding was dedicated for stormwater improvements.   The Stormwater Fund had minimal expenditures in 2024 as funding is accumulated for future stormwater  improvement projects.   The Parking Services Fund was created in 2020 to account for the operations of the paid parking program  for downtown Estes Park.  Fund balance increased slightly from $411,337 at the end of 2023 to $459,102  at the end of 2024.  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, 2024, the unrestricted net position of the Power and Communications Fund was $19.6  million and the Water Fund was $12.3 million.  The Power and Communications Fund had a net increase  of $4.6 million and the Water Fund had a net increase of $5.1 million for 2024.   The Power and  23 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 2024 appropriations for the General Fund, including transfers  out, was $4.3 million more than the original budget.  The  primary reasons for this difference are related  to the following changes:  $2.8 million increase from rollover of uncompleted PO’s and projects. $425,000 increase for a transfer to the Workforce Housing Fund for acquisition of a childcare facility. $1.1 million increase in transfers to the Community Reinvestment Capital Project Fund for various projects and increases. Actual revenue and transfers in were approximately the same as the final budgeted amounts ($19,073  greater).    Actual expenditures and transfers out were $5.3 million (24%) less than the final budgeted appropriations.   The primary factors contributing to this favorable variance include:  General Government expenditures were $2.0 million less than budgeted.  The Planning division had $450,834 less in expenditures, primarily due to delays in starting the development code rewrite project which rolled forward into 2025.  Facilities had $848,624 less in expenditures than budgeted, partially due to appropriating $750,000 as an increase to the facility and employee housing reserve.  Human resources had $220,649 in savings due to staff vacancies.  Numerous other variances accounted for the rest of the General Government budget savings. Public Safety expenditures were $1.2 million less than budgeted.   This  is primarily due to personnel cost savings in the Police Department from vacancies during the year. Public Works expenditures were $778,910 less than budgeted.  The stormwater maintenance costs were $399,818 less than budgeted due to personnel vacancies, accounting for much of the variance.  Transit expenditures were 196,116 less than budgeted, largely due to changes in the transit shuttle schedule. Culture and Recreation expenditures were $1.4 million less than budgeted.  The Parks Division did not complete some of the significant maintenance projects which will roll over into 2025. The resulting actual ending fund balance for the General Fund of $13.9 million was $10.0 million more  than the Final Budget’s projected ending fund balance.  Capital Asset and Debt Administration  Capital Assets  Governmental activities capital asset additions for 2024 were $12.1 million, with a net increase (after  disposal/retirement/transfers of capital assets) of $6.5 million.  Some  of the more significant capital  acquisitions included:  24 Community Drive Roundabout ‐ $224,919 Big Thompson Flood Mitigation Project ‐ $322,883 Tregent Restroom Remodel ‐ $253,108 Graves Ave Improvements ‐ $1,308,499 Cleave Street Improvements ‐ $1,354,280 Machinery and Equipment ‐ $364,651 Woodstock Childcare Center Acquisition ‐ $665,835 Street Overlay Project ‐ $ 549,494 Business‐type capital asset additions for 2024 were $12.1 million, with a net increase (after  disposal/retirement/transfers of capital assets) of about the same. Some of the more significant capital  purchases in this area, including capital acquisitions in progress, were:  Electric infrastructure (streetlights, overhead and underground distribution lines) ‐ $1.9 million Trailblazer Broadband fiber infrastructure – $496,046 Prospect Mountain Water infrastructure (distribution lines) ‐ $4.9 million Bureau Area Water System Improvements ‐ $2.8 million Thunder Mountain Water Tank Improvements ‐ $478,344 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, 2024 is $1.5 million.    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, 2024 is $2.5  million.  In 2019, the Town entered into a lease purchase agreement to upgrade the Town’s emergency  handheld 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, 2024 is $44,523.   The business‐type activities (utility funds) are currently obligated to two 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 $20.9 million as of December 31, 2024 and the Series B bonds mature in 2029 with a remaining  balance of $5.4 million as of December 31, 2024. 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 $1.4 million at the end of 2024.  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 $489,715 as of December 31, 2024.  The business‐type  activity share of the emergency handheld radio replacement lease purchase has a balance of $21,503 as  of December 31, 2024.  In 2024, the Town entered into a construction loan to make water distribution  25 system upgrades for the former Prospect Mountain Water District areas which has a balance of $4.5   million as of December 31, 2024.  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, 2024, is $95.8 million (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.  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.  26 Basic Financial Statements Town of Estes Park, Colorado Statement of Net Position December 31, 2024 PRIMARY GOVERNMENT DISCRETELY PRESENTED COMPONENT UNITS GOVERNMENTAL BUSINESS-TYPE LOCAL MARKETING ESTES PARK ACTIVITIES ACTIVITIES TOTAL DISTRICT HOUSING AUTHORITY ASSETS Cash and investments $ 36,379,657 $ 24,495,069 $ 60,874,725 $ 3,212,837 $3,051,730 Restricted cash and investments ----5,390,355 Receivables, net 782,208 5,902,363 6,684,571 161,134 145,459 Taxes receivable 3,125,834 22,515 3,148,349 953,377 - Intergovernmental receivable 3,809,022 6,798,674 10,607,696 -- Inventories 36,700 7,510,968 7,547,668 -- Prepaid items 217,652 2,354 220,005 88,318 88,253 Other assets ----369,350 Due from component unit 546,025 -546,025 -- Internal balances (1,565,231)1,565,231 --- Land held for sale ----2,974,175 Capital assets, not being depreciated 19,641,686 22,647,481 42,289,167 -10,448,826 Capital assets, net of accumulated depreciation 57,294,975 74,419,703 131,714,678 19,220 55,673,613 TOTAL ASSETS 120,268,528 143,364,356 263,632,884 4,434,886 78,141,761 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 347,571 86,740 434,311 22,013 1,192 Deferred outflows related to pension 2,522,412 2,292,953 4,815,365 406,227 124,986 TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,869,983 2,379,693 5,249,676 428,240 126,178 LIABILITIES Accounts payable 2,268,900 6,056,475 8,325,375 337,202 153,418 Due to primary government ---546,025 - Accrued liabilities 704,261 1,006,707 1,710,968 -581,534 Deposits -309,604 309,604 -261,511 Accrued interest payable 60,360 246,053 306,413 -- Claims payable 543,655 -543,655 -- Unearned revenue 2,246,366 578,109 2,824,475 28,394 33,594 Long-term liabilities: Due within one year 1,863,462 7,048,694 8,912,156 61,822 284,846 Due in more than one year 4,365,799 29,106,170 33,471,969 -56,257,359 Net Pension liability 4,644,352 4,343,192 8,987,544 761,831 361,105 Net OPEB liability 1,029,353 319,798 1,349,151 58,889 27,914 TOTAL LIABILITIES 17,726,508 49,014,801 66,741,309 1,794,163 57,961,281 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to Pension 4,771 4,462 9,233 783 371 Deferred inflows related to OPEB 190,902 99,455 290,357 18,314 8,681 Property taxes 605,486 -605,486 -- TOTAL DEFERRED INFLOWS OF RESOURCES 801,159 103,917 905,076 19,097 9,052 NET POSITION Net investment in capital assets 72,440,150 61,902,612 134,342,762 19,220 11,086,945 Restricted for: Deposits ----5,120,410 Stormwater operations 729,352 -729,352 -- Parks and open space 2,168,100 -2,168,100 -- Capital improvements 7,966,769 -7,966,769 -- Operations and Maintenance reserves -1,250,000 1,250,000 -- Emergencies 784,793 -784,793 132,273 - Unrestricted 20,521,679 33,472,720 53,994,400 2,898,373 4,090,251 TOTAL NET POSITION $104,610,844 $96,625,331 $201,236,175 $3,049,866 $20,297,606 The accompanying notes are an integral part of these financial statements. 27 Town of Estes Park, Colorado Statement of Activities For the Year Ended December 31, 2024 PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND FUNCTIONS / PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS Primary Government Governmental activities: General government $ 12,382,755 $ 535,612 $ 514,741 $ 392,309 Public safety 7,298,051 526,798 32,464 - Public works 7,101,093 685,302 -609,000 Culture and recreation 5,691,626 864,206 139,405 711,837 Interest on long-term debt 169,036 --- Total Governmental Activities 32,642,561 2,611,917 686,610 1,713,146 Business-Type Activities: Power and communications 20,557,672 25,640,924 -51,977 Water 6,261,377 6,919,917 -3,854,738 Workforce Housing Linkage Impact Fee 1,507,929 724,870 -- Total Business-Type Activities 28,326,978 33,285,711 -3,906,715 Total Primary Government $60,969,539 $35,897,628 $686,610 $5,619,861 Component Units: Local Marketing District 4,199,727 279,241 -- Estes Park Housing Authority 6,005,736 3,625,465 81,200 - Total Component Unit $10,205,463 $3,904,706 $81,200 $- 28 Town of Estes Park, Colorado Statement of Activities (continued) For the Year Ended December 31, 2024 NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION DISCRETELY PRESENTED COMPONENT UNITSPrimary Government GOVERNMENTAL BUSINESS-TYPE LOCAL MARKETING ESTES PARK FUNCTIONS / PROGRAMS ACTIVITIES ACTIVITIES TOTAL DISTRICT HOUSING AUTHORITY Primary Government Governmental activities: General government $ (10,940,093)$-$ (10,940,093)$-$- Public safety (6,738,789)-(6,738,789)-- Public works (5,806,791)-(5,806,791)-- Culture and recreation (3,976,178)-(3,976,178)-- Interest on long-term debt (169,036)-(169,036)-- Total Governmental Activities (27,630,888)-(27,630,888)-- Business-Type Activities: Power and communications -5,135,229 5,135,229 -- Water -4,513,278 4,513,278 -- Workforce Housing Linkage Impact Fee -(783,059)(783,059)-- Total Business-Type Activities -8,865,447 8,865,447 -- Total Primary Government $(27,630,888)$8,865,447 $(18,765,440)$-$- Component Units: Local Marketing District ---(3,920,486)- Estes Park Housing Authority ----(2,299,071) Total Component Unit $-$-$-$(3,920,486)$(2,299,071) Taxes: Property taxes $ 489,746 $-$ 489,746 $-$- Sales taxes 22,025,533 117,457 22,142,990 -- Lodging Taxes 5,650,243 -5,650,243 4,228,999 4,793,944 Franchise taxes 669,283 -669,283 -- Use taxes 376,387 -376,387 -- Other taxes 67,663 -67,663 -1,489,843 Investment income 1,166,121 1,433,060 2,599,182 47,733 13,574 Miscellaneous 1,107,196 275,880 1,383,076 100,000 - Transfers 1,511,148 (1,511,148)--- Total general revenues and transfers 33,063,320 315,250 33,378,569 4,376,732 6,297,361 Change in net position 5,432,432 9,180,697 14,613,129 456,246 3,998,290 NET POSITION, BEGINNING, as originally presented 99,859,399 87,853,148 187,712,547 2,593,620 16,299,316 Restatement (680,988)(408,514)(1,089,502)-- NET POSITION, ENDING $104,610,843 $96,625,331 $201,236,174 $3,049,866 $20,297,606 29 Town of Estes Park, Colorado Balance Sheet Governmental Funds December 31, 2024 COMMUNITY STREET WORKFORCE OTHER TOTAL GENERAL REINVESTMENT IMPROVEMENT HOUSING GOVERNMENTAL GOVERNMENTAL ASSETS FUND FUND FUND FUND FUNDS FUNDS Cash and cash investments $ 12,499,033 $ 5,218,288 $ 6,775,107 $ 2,488,503 $ 3,550,983 $ 30,531,914 Accounts and other receivables 383,014 15,037 13,968 -15,333 427,352 Intergovernmental receivable 239,884 1,737,360 91,884 -1,739,894 3,809,022 Taxes receivable 2,639,777 -235,097 546,025 250,960 3,671,859 Due from other funds 311,000 ----311,000 Prepaid items 15,390 ---1,794 17,183 TOTAL ASSETS $16,088,097 $6,970,684 $7,116,057 $3,034,528 $5,558,964 $38,768,330 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Accounts payable 546,308 232,196 294,282 489,785 256,376 1,818,947 Accrued liabilities 659,636 -2,460 2,732 7,589 672,417 Due to other funds ----311,000 311,000 TOTAL LIABILITIES 1,205,944 232,196 296,741 492,517 574,965 2,802,364 DEFERRED INFLOWS OF RESOURCES Property taxes 605,486 ----605,486 Unavailable revenue 343,693 1,737,360 10,378 2,021,067 1,056,448 5,168,945 TOTAL DEFERRED INFLOWS OF RESOURCES 949,179 1,737,360 10,378 2,021,067 1,056,448 5,774,431 FUND BALANCES Nonspendable Prepaid items 15,390 ---1,794 17,183 Restricted for: Parks and open space 208,249 ---1,959,851 2,168,100 Museum 25,000 ----25,000 Bag fees 22,525 ----22,525 Stormwater operations ----729,352 729,352 Capital improvements --6,730,215 -1,236,555 7,966,769 Emergencies 706,070 -78,723 --784,793 Assigned for: Subsequent year's budget appropriation of fund balance 3,174,834 ----3,174,834 Capital improvements -5,001,128 ---5,001,128 Reserves 5,449,229 --520,944 -5,970,174 Unassigned 4,331,677 ----4,331,677 TOTAL FUND BALANCES 13,932,974 5,001,128 6,808,937 520,944 3,927,551 30,191,535 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $16,088,097 $6,970,684 $7,116,057 $3,034,528 $5,558,964 $38,768,330 The accompanying notes are an integral part of these financial statements. 30 Town of Estes Park, Colorado Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position December 31, 2024 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds $ 30,191,535 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 service funds of $1,893,654 75,043,007 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 2,522,412 Deferred outflows related to OPEB 347,571 Deferred inflows related to pension (4,771) Deferred inflows related to OPEB (190,902) 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 OPEB liability (net of internal service funds of $4,622)(1,024,731) Net Pension liability (4,644,352) Accrued interest payable (60,360) Long-term liabilities (net of internal service fund liabilities of $135,768)(6,093,112) Total long-term liabilities (11,822,555) Other long term assets are not available to pay current expenditures and therefore, are deferred inflows of resources in the fund financial statements 2,922,579 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.5,601,967 Total net position - governmental activities $104,610,844 The accompanying notes are an integral part of these financial statements. 31 Town of Estes Park, Colorado Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 WORKFORCE COMMUNITY STREET HOUSING OTHER TOTAL GENERAL REINVESTMENT IMPROVEMENT LODGING TAX GOVERNMENTAL GOVERNMENTAL FUND FUND FUND FUND FUNDS FUNDS REVENUES: Taxes $ 19,317,471 $-$ 2,291,737 $ 5,650,243 $ 2,019,404 $ 29,278,853 Licenses and Permits 765,960 ---20,208 786,167 Intergovernmental 691,845 573,679 81,506 28,933 1,828,283 3,204,247 Charges for Services 872,944 --6,232 593,936 1,473,113 Fines and Forfeitures 27,360 ---49,661 77,021 Rental income 275,617 ----275,617 Contributions 137,280 ----137,280 Investment Income 633,437 182,033 250,855 -99,796 1,166,121 Miscellaneous 813,767 ----813,767 TOTAL REVENUES 23,535,681 755,713 2,624,098 5,685,408 4,611,288 37,212,185 EXPENDITURES: Current: General Government 6,719,210 182,476 -5,260,661 234,914 12,397,261 Public Safety 7,176,082 ----7,176,082 Public Works 2,925,107 -210,193 -737,480 3,872,781 Culture and Recreation 4,885,600 ---537,686 5,423,286 Debt Service: Principal 61,512 747,056 --44,030 852,598 Interest 19,193 171,760 --4,514 195,468 Capital outlay 10,214 2,909,337 1,036,338 694,768 1,126,202 5,776,859 TOTAL EXPENDITURES 21,796,918 4,010,630 1,246,531 5,955,429 2,684,826 35,694,334 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,738,763 (3,254,917)1,377,567 (270,021)1,926,462 1,517,851 OTHER FINANCING SOURCES (USES) Transfers in 1,511,148 4,356,515 -425,000 -6,292,663 Transfers out (4,781,515)----(4,781,515) NET CHANGE IN FUND BALANCES (1,531,604)1,101,598 1,377,567 154,979 1,926,462 3,028,999 FUND BALANCES, BEGINNING OF YEAR 15,464,578 3,899,530 5,431,370 365,965 2,001,089 27,162,532 FUND BALANCES, END OF YEAR $13,932,974 $5,001,128 $6,808,937 $520,944 $3,927,551 $30,191,534 The accompanying notes are an integral part of these financial statements. 32 Town of Estes Park, Colorado Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2024 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ 3,028,999 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 capital outlay exceeds depreciation expense. Depreciation and amortization expense, net of internal service funds of $379,091 (3,750,000) Capital outlay, net of internal service funds of $718,402 5,598,150 Net amount 1,848,150 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 includes payments on leases during the current year.852,598 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 (42,109) Change in accrued interest 8,724 Amortization of lease purchase agreement premium 17,708 Change in accrued compensated absences (100,857) Net amount (116,534) 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.(941,177) 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.691,617 OPEB expense 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.(224,046) 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.292,825 Change in net position - governmental activities $5,432,432 The accompanying notes are an integral part of these financial statements. 33 Town of Estes Park, Colorado Proprietary Funds Statement of Net Position December 31, 2024 Business-Type Activities Governmental Activities Major Funds Nonmajor Fund Current Assets: Power and Communications Fund Water Fund Workforce Housing Linkage Impact Fee Fund Total Enterprise Funds Internal Service Fund Cash and investments $ 15,241,826 $ 8,960,901 $ 292,342 $ 24,495,069 $ 5,847,742 Accounts receivable, net 3,977,151 925,453 1,685 4,904,289 354,856 Intergovernmental receivable 134,623 6,664,051 -6,798,674 - Taxes receivable 22,515 --22,515 - Notes receivable, current portion -132,286 -132,286 - Inventories 7,106,064 404,904 -7,510,968 36,700 Prepaid Items 2,159 195 -2,354 200,469 Total Current Assets 26,484,337 17,087,789 294,027 43,866,153 6,439,768 Non-Current Assets: Notes receivable -865,788 -865,788 - Capital assets, not being depreciated 2,185,271 20,462,210 -22,647,481 278,743 Capital assets, net of accumulated depreciation and amortization 54,128,582 20,291,121 -74,419,703 1,614,911 Total Non-Current Assets 56,313,853 41,619,119 -97,932,972 1,893,654 TOTAL ASSETS 82,798,190 58,706,908 294,027 141,799,125 8,333,421 DEFERRED OUTFLOWS OF RESOURCES Related to OPEB 56,569 30,171 -86,740 - Related to pension 1,513,140 779,813 -2,292,953 - TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,569,709 809,984 -2,379,693 - LIABILITIES Current Liabilities: Accounts payable 3,605,783 2,432,605 18,087 6,056,475 449,952 Accrued liabilities 121,592 885,115 -1,006,707 31,844 Customer deposits 290,104 19,500 -309,604 - Claims payable ----543,655 Accrued interest payable 103,845 142,208 -246,053 - Unearned revenue 302,169 -275,940 578,109 - Compensated absences payable, current portion 412,012 213,930 -625,942 84,606 Loans payable, current portion 20,224 4,494,279 -4,514,504 - Revenue bonds payable, current portion 1,564,879 343,370 -1,908,249 - Total Current Liabilities 6,420,608 8,531,006 294,027 15,245,641 1,110,057 Non-Current Liabilities: Compensated absences payable 259,544 104,806 -364,350 51,543 Net pension liability 3,104,123 1,239,069 -4,343,192 - OPEB liability 208,561 111,237 -319,798 4,622 Long term debt 27,170,788 1,571,032 -28,741,820 - Total Non-Current Liabilities 30,743,016 3,026,144 -33,769,160 56,165 TOTAL LIABILITIES 37,163,624 11,557,151 294,027 49,014,801 1,166,223 DEFERRED INFLOWS OF RESOURCES Related to OPEB 64,861 34,594 -99,455 - Related to pension 3,188 1,274 -4,462 - TOTAL DEFERRED INFLOWS OF RESOURCES 68,049 35,868 -103,917 - NET POSITION Net investment in capital assets 27,557,962 34,344,650 -61,902,612 1,893,654 Restricted for operations and maintenance reserve -1,250,000 -1,250,000 - Unrestricted 19,578,265 12,329,223 -31,907,489 5,273,545 TOTAL NET POSITION $47,136,227 $47,923,873 $-$95,060,100 $7,167,199 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.1,565,231 Total Net Position Business-Type Activities $96,625,331 The accompanying notes are an integral part of these financial statements. 34 Town of Estes Park, Colorado Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2024 Business-Type Activities Governmental Activities Major Funds Nonmajor Fund OPERATING REVENUES Power and Communications Fund Water Fund Workforce Housing Linkage Impact Fee Fund Total Internal Service Fund Charges for services $ 25,640,924 6,672,095 $ -$ 32,313,019 $ 6,768,046 Impact Fees --724,870 724,870 - Miscellaneous 127,882 52,275 -180,157 3,774 TOTAL OPERATING REVENUES 25,768,806 6,724,369 724,870 33,218,045 6,771,820 OPERATING EXPENSES Source of supply 9,324,104 185,872 -9,509,976 - Purification -1,117,301 -1,117,301 - Distribution 3,468,115 1,963,316 -5,431,430 - Customer accounts 554,877 286,797 -841,673 - Administration and general 2,332,002 1,215,909 1,507,929 5,055,840 1,868,933 Broadband operations 1,482,980 --1,482,980 3,856,335 Depreciation expense 2,541,227 1,217,558 -3,758,785 374,094 Medical expenses ----546,170 TOTAL OPERATING EXPENSES 19,703,304 5,986,753 1,507,929 27,197,986 6,645,533 OPERATING INCOME (EXPENSE)6,065,502 737,616 (783,059)6,020,059 126,287 NON-OPERATING REVENUES (EXPENSES) Investment income 701,425 691,165 40,471 1,433,060 262,265 Grant revenue 51,977 3,854,738 -3,906,715 - Taxes 117,457 --117,457 - Tap fees -247,822 -247,822 - Interest expense (854,368)(274,624)-(1,128,992)- TOTAL NON-OPERATING REVENUES (EXPENSES)16,491 4,519,101 40,471 4,576,063 262,265 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 6,081,993 5,256,717 (742,589)10,596,122 388,552 Transfers out (1,384,152)(126,996)-(1,511,148)- CHANGE IN NET POSITION 4,697,841 5,129,721 (742,589)9,084,974 388,552 NET POSITION, BEGINNING OF YEAR, as originally presented 42,696,578 42,930,779 742,589 86,369,946 6,834,236 Restatement (258,192)(136,627)-(394,819)(55,589) NET POSITION, END OF YEAR $47,136,227 $47,923,873 $-$95,060,100 $7,167,199 Amounts reported for Business-Type Activities in the Statement of Activities are different because: Change in Net Position of Business-Type Activities 9,084,974 An internal service fund is used by management to charge the costs of fleet maintenance, vehicle replacement, information technology, and risk management 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.95,724 Total Change in Net Position of Business-Type Activities $9,180,697 The accompanying notes are an integral part of these financial statements. 35 Town of Estes Park, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2024 Business-Type Activities Governmental Activities Major funds Nonmajor Fund Power and Communications Fund Water Fund Workforce Housing Linkage Impact Fee Fund Total Internal Service Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 25,293,586 $ 6,781,146 $ 768,657 $ 32,843,388 $ 2,845,096 Cash received from other sources 127,882 52,275 -180,157 4,599,920 Cash paid for goods and services (14,627,349)(3,532,402)(1,489,843)(19,649,594)(6,039,243) Cash paid to employees (3,926,438)(2,058,237)-(5,984,675)(876,438) NET CASH FROM OPERATING ACTIVITIES 6,867,681 1,242,782 (721,186)7,389,276 529,335 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Taxes received 117,457 --117,457 - Transfers to other funds (1,384,152)(126,996)-(1,511,148)- Other ----- NET CASH FROM NON-CAPITAL FINANCING ACTIVITIES (1,266,695)(126,996)-(1,393,691)- CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital grants 552,690 --552,690 - Acquisition of capital assets (2,880,097)(9,120,594)-(12,000,691)(718,406) Proceeds from the issuance of long-term debt -3,728,384 -3,728,384 - Principal paid on long-term debt (1,311,302)(322,882)-(1,634,184)- Interest paid on long-term debt (1,072,508)(186,390)-(1,258,898)- Tap fees received -247,822 -247,822 - NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (4,711,217)(5,653,660)-(10,364,877)(718,406) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 701,425 691,165 40,471 1,433,061 262,264 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES 701,425 691,165 40,471 1,433,061 262,264 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,591,194 (3,846,709)(680,715)(2,936,231)73,193 CASH AND CASH EQUIVALENTS Beginning of Year 13,650,632 12,807,610 973,057 27,431,299 5,774,550 End of Year $15,241,826 $8,960,901 $292,342 $24,495,069 $5,847,742 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income $ 6,065,502 $ 737,616 $ (783,059)$ 6,020,059 $ 126,287 Adjustments to reconcile operating income to net cash flows from operating activities Depreciation 2,541,227 1,217,558 -3,758,785 374,094 (Increase) decrease in operating assets: Accounts receivable (347,337)109,050 (484)(238,772)(296,368) Inventories (2,232,744)(13,179)-(2,245,923)(1,767) Prepaid items (2,159)(195)-(2,354)(51,963) (Increase) decrease in operating liabilities: Accounts payable 1,484,438 (479,336)18,087 1,023,189 346,783 Accrued liabilities 31,109 97,827 -128,936 11,456 Unearned revenues --44,270 44,270 - Deposits (50,852)12,000 -(38,852)- Compensated absences payable (1,616)18,226 -16,610 20,812 Net pension and OPEB liabilities and related deferred inflows and outflows of resources (619,887)(456,785)-(1,076,672)- NET CASH FROM OPERATING ACTIVITIES $6,867,681 $1,242,782 $(721,186)$7,389,276 $529,335 The accompanying notes are an integral part of these financial statements. 36 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 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 discretely presented 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. An increase to the lodging tax in 2023 to assist with workforce housing and childcare needs within the community resulted in tax collections of $5,374,603 being transferred to the Town. 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 (a majority) 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. The Estes Park Housing Authority (EPHA) was established in April 1993 to help meet the housing needs of the Estes Park community. During November 2022, voters approved an increase to the lodging tax assessed by the Visit Estes Park to assist with workforce housing and childcare needs within the community. The Town entered into an agreement with the Local Marketing District to manage these new lodging taxes on their behalf. The Town subsequently entered into an agreement with EPHA to assist with workforce housing development, resulting in annual transfers to EPHA to support workforce housing initiatives. 37 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 1. Summary of Significant Accounting Policies (continued) Due to the nature of the arrangement with EPHA and the significance of this new workforce housing financial benefit to EPHA’s efforts, EPHA is considered part of the Town’s reporting entity and their financial statements. Separately issued financial statements for Estes Park Housing Authority may be obtained from Estes Park Housing Authority at 363 East Elkhorn Ave, Ste 101, 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 or the EPHA’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, 2024. 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. 38 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 1. Summary of Significant Accounting Policies (continued) 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. 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. 39 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 1. Summary of Significant Accounting Policies (continued) Street Improvement Fund – This fund is a special revenue fund created in 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. Workforce Housing Lodging Tax Fund - This fund is a special revenue fund created in November 2022 by ballot initiative 6E. This fund receives a portion of the lodging taxes imposed by the Local Marketing District Visit Estes Park for support of workforce housing and childcare development projects 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. Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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. 40 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 1. Summary of Significant Accounting Policies (continued) 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. Receivables, net – Consists of amounts due from individuals and organizations for good and services. Additionally, this includes notes receivable of amounts due from customers related to one-time system development assessments. An allowance of uncollectible balances is recorded net. Inventories - Inventories are valued at cost, using the last-in first-out 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 Subscription based IT arrangements Life of contract 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 and other post- employment benefit (“OPEB”) liabilities per GASB Statement No. 68 and 75. See Note 8 for additional information. 41 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 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, 2024 the Town reported unearned revenue of $2,246,366 in governmental funds and $578,109 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 $5,168,945 of deferred inflows of resources related to unavailable revenue and $605,486 related to property taxes as of December 31, 2024. 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, 2024. 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. The Town recognizes a liability in the proprietary funds and government-wide financial statements for leave time that (1) has been earned for service previously rendered by employees, (2) accumulated and is allowed to be carried over to subsequent years and (3) is more likely than not to be used as time off or settled in cash upon separation from employment. These compensated absences are recognized as current salary costs when earned in the proprietary funds and when due in the governmental funds and include salary-related benefits, where applicable. 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. 42 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 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, 2024, the Town reported the following restrictions in the statement of net position: 1) $729,352 for stormwater operations, $2,168,100 for parks and open space, $7,966,768 restricted for future capital improvements and $784,793 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. 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. 43 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 1. Summary of Significant Accounting Policies (continued) 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 and Restatement of Beginning Balances- During the current year, the Town implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the Town now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle and correction of an error are summarized in Note 14. During the current year, the Town implemented GASB Statement No. 100, Accounting Changes and Error Correction. The standard was applied to enhance the transparency and consistency of reporting accounting changes and prior-period error corrections. The effects of the current year change in accounting principle and correction of an error are summarized in the Note 14. 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. 44 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 3. Cash and Investments A summary of cash and investments as of December 31, 2024, follows: Town Visit Estes Park EPHA Petty Cash 3,850$ -$ -$ Deposits 3,555,621 3,212,837 8,706,533 Investments 57,315,254$ - - Total 60,874,725$ 3,212,837$ 8,706,533$ Discretely Presented Component Units Cash and investments are presented in the government-wide financial statements as follows: Town Visit Estes Park EPHA Cash and investments 60,874,725$ 3,212,837$ 3,051,730$ Tenant security deposits - - 264,448 Restricted cash and investments - - 5,390,355 Total 60,874,725$ 3,212,837$ 8,706,533$ Discretely Presented Component Units 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, 2024, the Town, Visit Estes Park, and EPHA bank deposits had carrying values of $4,432,299, $1,889,211, and $8,706,5 33 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, Visit Estes Park's, or EPHA’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; 45 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 3. Cash and Investments (continued) 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; 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," “CSAFE", and “CSIP”. At December 31, 2024, the Town had the following investments reported as cash and cash equivalents: Investment Type Rating Less than 1 1 to 5 Fair Value Local Government Investment Pools AAAm 36,200,263$ -$ 36,200,263$ Corporate bonds AA- 644,626 - 644,626 U.S. Treasury Securities AA+ 5,753,519 5,086,137 10,839,655 Government agencies AA+ 680,059 8,043,280 8,723,339 Municipal Bonds - 907,370 907,370 Total 43,278,467$ 14,036,787$ 57,315,254$ Investment Maturities (in Years) 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 have assets of one billion dollars or the highest rating issued by a NRSRO. 46 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 3. Cash and Investments (continued) 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, 2024. Percentages are based on the Town's total investments. Investment Type Concentration o Credit Ris Local Government Investment Pools 63.07% Corporate Bonds 1.12% Government Agencies 34.23% Government Bonds 1.58% 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, 2024 were as follows: Investments Level 1 Level 2 Level 3 Total Government agencies $ 8,723,339 $ - $ - $ 8,723,339 Corporate bonds - 644,626 - 644,626 Government bonds - 10,839,655 - 10,839,655 Municipal Bonds - 907,370 - 907,370 Total $ 8,723,339 $12,391,652 $ - $ 21,114,991 Local government investment pool measured at NAV 23,808,183 Local government investment pool measured at amortized cost 12,392,081 Total $ 57,315,254 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, 2024, the Town had invested $13,158,372 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. 47 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 3. Cash and Investments (continued) 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. As of December 31, 2024, the Town had invested $12,392,081 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. CSAFE is a highly liquid fund operating similarly to a money market-like fund and each share is equal in value to $1.00. CSAFE measures all of its investment at amortized cost in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. CSAFE 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. The weighted average maturity of the portfolio shall not exceed 60 days and the weighted average life of the portfolio shall not exceed 120 days. CSAFE is rated AAAm by Standard & Poor's. There are no unfunded commitments, the redemption frequency is daily or weekly, and there is no redemption notice period. As of December 31, 2024, the Town had $10,649,811 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 $1.00. CSIP measures all of its investment at net asset value in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. CSIP invests primarily in United States Treasuries, United States Agencies, Primary Dealer Repurchase Agreements, highly rated commercial paper, AAAm rated money market funds, highly rated corporate bonds and Colorado Depositories. CSIP is rated AAAm by Standard & Poor's. The remainder of this page intentionally left blank. 48 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 4. Capital Assets Capital asset activity for the year ended December 31, 2024 is summarized below: Balance Balance December 31, Transfers/ Transfers/ December 31, 2023 Additions Retirements 2024 Governmental Activities (restated) Capital assets, not being depreciated : Land held for preservation 6,288,911$ -$ -$ 6,288,911$ Construction in Progress 14,236,420 4,665,936 (5,549,580) 13,352,775 Total capital assets, not being depreciated 20,525,331 4,665,936 (5,549,580) 19,641,686 Capital assets, being depreciated: Buildings 24,141,820 665,835 - 24,807,655 Infrastructure 140,980,467 6,134,823 - 147,115,291 Machinery and Equipment 10,329,467 399,540 (78,917) 10,650,089 Intangible right-to-use SBITA*529,815 - - 529,815 Total capital assets, being depreciated 175,981,569 7,200,198 (78,917) 183,102,850 Buildings (13,368,978) (556,296) - (13,925,274) Infrastructure (101,136,319) (2,616,169) - (103,752,488) Machinery and Equipment (7,181,662) (878,356) 78,917 (7,981,101) Intangible right-to-use SBITA*(76,742) (72,271) - (149,013) Total accumulated depreciation and amortization (121,763,700) (4,123,092) 78,917 (125,807,875) Total capital assets, being depreciated/amortized , net 54,217,869 3,077,106 - 57,294,975 Total governmental activities capital assets, net 74,743,199$ 7,743,042$ (5,549,580)$ 76,936,661$ Less accumulated depreciation and amortization: Depreciation expense was charged to governmental programs of the Town as follows: Governmental Activities General Governmen $ 226,187 Public Safet 166,567 Public Works 3,555,082   Culture and Recreation 175,256   Total $ 4,123,092 49 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 4. Capital Assets (continued) Balance Balance December 31 Transfers/ Transfers/ecember 31 2023 Additions Retirements 2024 Business-Type Activities Capital assets, not being depreciated : Land and easements 4,271,639$ -$-$4,271,639$ Construction in progress 9,195,228 9,269,786 (89,171) 18,375,842 Total capital assets, not being depreciated 13,466,867 9,269,786 (89,171) 22,647,481 Capital assets, being depreciated: Buildings 12,525,648 210,548 - 12,736,196 Infrastructure 79,720,906 1,847,891 - 81,568,796 Machinery and Equipment 23,036,625 761,638 (39,633) 23,758,630 Intangible right-to-use SBITA*9,625 - - 9,625 Total capital assets, being depreciated 115,292,804 2,820,077 (39,633) 118,073,248 Less accumulated depreciation: Buildings (5,340,067) (548,342) - (5,888,409) Infrastructure (20,351,421) (2,168,093) - (22,519,514) Machinery and Equipment (14,240,767) (1,039,142) 39,633 (15,240,276) Intangible right-to-use SBITA*(2,139) (3,208) -(5,347) Total accumulated depreciation and amortization (39,934,393) (3,758,785) 39,633 (43,653,545) Total capital assets, being depreciated/amortized , net 75,358,411 (938,708) - 74,419,702 Total business-type activities capital assets, net 88,825,278$ 8,331,077$ (89,171)$ 97,067,184$ * Subscription based technology agreements Depreciation expense was charged to business-type activities of the Town as follows: Business-Type Activities Power and Communications 2,541,227$ Water 1,217,558 Total 3,758,785$ 50 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 4. Capital Assets (continued) The Town implemented Governmental Accounting Standards Board Statement No. 96, Subscription- Based Information Technology Arrangements, during the year ended December 31, 2023. The Town has three software arrangements that require recognition under GASB No. 96. The Town recognizes a subscription-based information technology arrangements (SBITA) liability and an intangible right-to- use asset for agreements related to a five-year enforcement mobile software subscription, a prepaid three-year budgeting software subscription, and a 5-year taser and police body-worn camera subscription, which was estimated to renew for five additional years. The intangible right-to-use assets mentioned above will be amortized over the term of the agreements. 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, 2024. Balance at Balance at Due December 31, December 31, Within 2023 Additions Payments 2024 One Year (as restated) Governmental activities: Certificates of participation 1,950,000$ -$ (470,000)$ 1,480,000$ 480,000$ Lease purchase agreement 2,799,059 - (277,056)2,522,003 289,664 Radio Equipment Lease Purchase 88,553 - (44,030) 44,523 44,523 Premium lease purchase 79,983 -(17,708)62,275 15,868 Total direct placements 4,917,595$ -$ (808,794)$ 4,108,801$ 830,055$ SBITA* liability 449,221 - (61,512) 387,709 64,188 Environmental remediation 78,734 42,109 - 120,843 10,960 Compensated Absences 1,476,531 135,377 -1,611,908 958,259 Total other long-term liabilities 2,004,486$ 177,487$ (61,512)$ 2,120,460$ 1,033,407$ Total 6,922,081$ 177,487$ (870,306)$ 6,229,261$ 1,863,462$ * Subscription-based IT arrangements Pension and Postemployment benefits are expected to be liquidated primarily with revenues of the General Fund. 51 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2024. Balance at Balance at Due December 31, December 31, Within 2023 Additions Payments 2024 One Year (as restated) Business-type activities: 2019A Power and Comm Rev Bonds 21,385,000$ -$ (455,000)$ 20,930,000$ 480,000$ 2019A Power and Comm Rev Bonds Premium 2,644,018 - (228,351) 2,415,667 224,879 2019B Taxable Power and Comm Rev Bonds 6,230,000 - (840,000) 5,390,000 860,000 Total bonded debt 30,259,018$ -$ (1,523,351)$ 28,735,667$ 1,564,879$ 2008A Water Loan 1,731,193$ -$ (306,506)$ 1,424,687$ 329,211$ 2019 Radio Equipment Lease 36,526 - (16,302) 20,224 20,224 2020 USDA Loan 503,559 - (13,844) 489,715 14,159 2019 Radio Equipment Lease Purchase 3,812 - (2,533) 1,279 1,279 2022 Construction Loa 764,616 3,728,384 - 4,493,000 4,493,000 Total direct placements 3,039,707$ 3,728,384$ (339,186)$ 6,428,905$ 4,857,873$ Compensated Absences 973,676$ 16,616$ -$ 990,292$ 625,942$ Total other long-term liabilities 973,676$ 16,616$ -$ 990,292$ 625,942$ Total 34,272,401$ 3,745,000$ (1,862,537)$ 36,154,864$ 7,048,694$ 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%. A balance of $2,415,667 remains on the premium. 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; 52 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) (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 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. 53 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) The annual debt service requirements for the outstanding bonds at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 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 1,465,000 910,772 2,375,772 2029 1,515,000 864,583 2,379,583 2030-2034 8,605,000 3,281,800 11,886,800 2035-2039 10,585,000 1,303,000 11,888,000 Total 26,320,000$ 9,343,704$ 35,663,704$ 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 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. (e) 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. 54 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) During the year ended December 31, 2024, revenues of $7,415,534 were available to pay 110% of annual debt service of $384,523 and operating and maintenance expenses of $4,836,258. Annual debt service requirements for the outstanding Water Loan at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 2025 329,211$ 70,790$ 400,000$ 2026 346,239 55,301 401,539 2027 363,267 39,613 402,880 2028 385,971 17,234 403,205 Total 1,424,687$ 182,937$ 1,607,624$ Effective January 1, 2019, the Town entered into a lease purchase obligation in the amount of $419,293 for the lease of radio equipment. The lease requires annual principal and interest payments of $69,348, with interest at 5.030%. The following are events of default under this agreement: (i) failure to make any lease payment (or any other payment) as it becomes due in accordance with the terms of the lease when funds have been appropriated sufficient for such purpose, and any such failure continues for ten (10) days after the due date thereof; (ii) failure to perform or observe any other covenant, condition, or agreement to be performed or observed by it hereunder and such failure is not cured within twenty (20) days after written notice thereof by the lessor; (iii) the discovery by lessor that any statement, representation, or warranty made by the Town in the lease or in writing delivered by lessee is false, misleading or erroneous in any material respect; (iv) proceedings under any bankruptcy, insolvency, reorganization or similar legislation shall be instituted against or by the lessee, or a receiver or similar officer shall be appointed for lessee or any of its property, and such proceedings or appointments shall not be vacated, or fully stayed, within twenty (20) days after the institution or occurrence thereof; or (v) an attachment, levy or execution is threatened or levied upon or against the equipment. In the event of default, the lessor may, at its option: (i) declare all amounts due under the lease; (ii) request the Town to discontinue use of the equipment; (iii) sell or lease the equipment; (iv) request the return of the equipment to the lessor; or (v) exercise any other right available under law. Annual debt service requirements for the outstanding lease obligation at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 2025 66,027$ 2,531$ 68,558$ Total 66,027$ 2,531$ 68,558$ 55 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) On May 30, 2013, the Town issued Certificates of Participation, Series 2013, in the amount of $6,075,000, for the purpose of financing construction of a multi-purpose events center and new stall barns at the Stanley Park Fairgrounds complex. The certificates are subject to mandatory sinking fund redemption prior to maturity of December 1, 2027. Payments of principal are due annually on December 1, through 2027. Interest accrues at a rate of 2.430% and is payable semiannually on June 1 and December 1. The following are events of default under this agreement: (i) failure by the Town to pay any amounts due during the term of the agreement within five days following the due date; (ii) failure by the Town to vacate the underlying property by the specified date in an event of Nonappropriation; (iii) any sublease, assignment, encumbrance, conveyance or other transfer of the interest of the Town in all or any portion of the underlying property, in violation of terms of the agreement (iv) failure by the Town to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as excluded by the agreement, for a period of 30 days after written notice; or (v) the Town files a petition or application seeking reorganization or protection under federal bankruptcy law or for other debtor relief under the laws of the State or a receiver is appointed for all or any material portion of the Town's assets or revenues or the Town is the subject of such a petition or application which is not contested by the Town or otherwise dismissed, vacated, discharged or stayed within 60 days. In the event of default, the trustee has the right to terminate the agreement, request the Town to vacate the underlying property and sell or assign it interest in the agreement. They may also recover any unpaid amounts and take any additional action allowed by law. Annual debt service requirements for the outstanding Certificates of Participation at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 2025 480,000$ 35,964$ 515,964$ 2026 495,000 24,300 519,300 2027 505,000 12,272 517,272 Total 1,480,000$ 72,536$ 1,552,536$ 56 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) 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, 2024. The total principal balance on the lease is $3,559,951 at an annual interest rate of 4.5%. A balance of $62,275 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 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. 57 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) Annual debt service requirements for the outstanding Lease Purchase Agreement at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 2025 289,664$ 110,268$ 399,932$ 2026 302,846 97,086 399,932 2027 316,627 83,305 399,932 2028 331,036 68,896 399,932 2029 346,100 53,832 399,932 2030-2032 935,731 64,099 999,829 Total 2,522,003$ 477,486$ 2,999,489$ 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 $2,086, through July 2050. In the event that the Town does not comply with the terms of the USDA loan, the non-compliance would be addressed under the provisions of 7 CFR 1782 and other applicable regulations, statutes and policies. Annual debt service requirements for the USDA loan at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 2025 14,162$ 10,870$ 25,032$ 2026 14,484 10,548 25,032 2027 14,784 10,248 25,032 2028 15,149 9,883 25,032 2029 15,493 9,539 25,032 2030-2034 82,886 42,274 125,160 2035-2039 92,734 32,426 125,160 2040-2044 103,792 21,368 125,160 2045-2049 116,144 9,016 125,160 2050 20,088 201 20,289 Total 489,715$ 156,372$ 646,088$ 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. The construction loan carries a balance of $4,493,000 as of December 31, 2024. 58 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 5. Long-Term Debt (continued) 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 December 31, 2024, the Town made payments in the amount of $5,499 for monitoring costs. As of December 31, 2024, the Town's estimated liability is $120,843 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. In November 2022, the Town entered into a subscription-based information technology arrangement for enforcement mobile ticketing software, which allows the right-to-use software over the term of the agreement. The Town is required to make monthly minimum contractual payments totaling $1,838. The Town used an estimate of its incremental borrowing rate to determine the subscription discount rate. The subscription term is 60 months and matures October 31, 2027. In 2021, the Town entered into a five-year subscription-based information technology arrangement for police taser and body worn cameras, which allows the right-to-use software over the term of the agreement. The Town is required to make annual contractual payments totaling $58,645. The agreement contains an automatic renewal feature, which the Town expected to executed for an additonal five years at a 3% rate increase per year after the current term expires in 2025. The Town used an estimate of its incremental borrowing rate to determine the subscription discount rate. Annual debt service requirements for the subscription liability at December 31, 2024 are as follows: Year ending December 31, Principal Interest Total 2025 64,188$ 16,518$ 80,705$ 2026 68,739 13,726 82,465 2027 72,881 10,708 83,588 2028 56,163 7,921 64,084 2029 60,591 5,475 66,066 2030-2034 65,148 2,837 67,986 Total 387,709$ 57,185$ 444,894$ 59 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 6. Interfund Transfers Interfund transfers for the year ended December 31, 2024, were comprised of the following: Transfers In Transfers Out Amount General Fund Power and Communications Fund 1,384,152$ General Fund Water Fund 126,996 Community Reinvestment Fund General Fund 4,356,515 Workforce Housing Fund General Fund 425,000 6,292,663$ 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 dollars to the capital project fund. The transfer from the general fund to the workforce housing fund was for workforce housing initiatives. 7. Notes Receivable Following is a summary of notes receivable activity for the business-type activities for the year ended December 31, 2024. Balance at Balance at Due December 31, December 31, Within 2023 Additions Payments 2024 One Year Business-type activities: Notes receivable 1,130,020$ -$ (131,946)$ 998,074$ 132,286$ Total 1,130,020$ -$ (131,946)$ 998,074$ 132,286$ 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 with accrued interest as of December 31, 2024 totaled $82,919. 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 with accrued interest as of December 31, 2024 totaled $174,730. In November 2021, the Town entered into a treated water service agreement with a business which required payment of system development fees. 60 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 7. Notes Receivable (continued) 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, 2024 totaled $740,425. 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 Summary of Significant Accounting Policies Pensions The Town participates 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 (FNP) and additions to/deductions from the FNP 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. 61 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Plan description. Eligible employees of the Town are provided with pensions through the 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. Benefits provided as of December 31, 2023. PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined by the amount of service credit earned and/or purchased, highest average salary, the benefit structure(s) under which the member retires, the benefit option selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713, and 1714. The lifetime retirement benefit for all eligible retiring employees under the PERA benefit structure is the greater of the: • Highest average salary multiplied by 2.5% and then multiplied by years of service credit. • The value of the retiring employee’s member contribution account plus a 100% match on eligible amounts as of the retirement date. This amount is then annuitized into a monthly benefit based on life expectancy and other actuarial factors. In all cases the service retirement benefit is limited to 100% of highest average salary and cannot exceed the maximum benefit allowed by federal Internal Revenue Code. Members may elect to withdraw their member contribution accounts upon termination of employment with all PERA employers; waiving rights to any lifetime retirement benefits earned. If eligible, the member may receive a match of either 50% or 100% on eligible amounts depending on when contributions were remitted to PERA, the date employment was terminated, whether 5 years of service credit has been obtained and the benefit structure under which contributions were made. Upon meeting certain criteria, benefit recipients who elect to receive a lifetime retirement benefit generally receive post-retirement cost-of-living adjustments, referred to as annual increases in the C.R.S. Subject to the automatic adjustment provision (AAP) under C.R.S. § 24-51-413, eligible benefit recipients under the PERA benefit structure who began membership before January 1, 2007, and all eligible benefit recipients of the DPS benefit structure will receive the maximum annual increase (AI) or AI cap of 1.00% unless adjusted by the AAP. Eligible benefit recipients under the PERA benefit structure who began membership on or after January 1, 2007, will receive the lesser of an annual increase of the 1.00% AI cap or the average increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the prior calendar year, not to exceed a determined increase that would exhaust 10% of PERA’s Annual Increase Reserve (AIR) for the LGDTF. The AAP may raise or lower the aforementioned AI cap by up to 0.25% based on the parameters specified in C.R.S. § 24-51- 413. 62 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Disability benefits are available for eligible employees once they reach five years of earned service credit and are determined to meet the definition of disability. For Safety Officers whose disability is caused by an on- the-job injury, the five-year service requirement is waived and they are immediately eligible to apply for disability benefits. The disability benefit amount is based on the lifetime retirement benefit formula(s) shown above considering a minimum 20 years of service credit, if deemed disabled. Survivor benefits are determined by several factors, which include the amount of earned service credit, highest average salary of the deceased, the benefit structure(s) under which service credit was obtained, and the qualified survivor(s) who will receive the benefits. Contribution Provisions as of December 31, 2024 -Eligible employees and the Town are required to contribute to the LGDTF at a rate set by Colorado statute. The contribution requirements are established under C.R.S. § 24-51-401, et seq. and§ 24-51-413. Employee contribution rates for the period of January 1, 2023 through December 31, 2023 are summarized in the table below: January 1, 2024 Through December 31, 2024 Employee contribution 9.00% **Contribution rates for the LGDTF are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42). The employer contribution requirements for all employees are summarized in the table below: January 1, 2024 Through December 31 2024 Employer contribution rate 11.00% Amount of employer contribution apportione to the Health Care Trust Fund as specified in C.R.S. § 24-51-208(1)(f) (1.02%) Amount apportioned to the LGDTF 9.98% Amortization Equalization Disbursement (AED) as specified in C.R.S. § 24-51-411 2.20% Supplemental Amortization Equalization Disbursement (SAED) as specified in C.R.S. § 24-51-411 1.50% Define Contribution Supplemen as specified in C.R.S. § 24-51-415 0.08% Total em lo er contribution rate to the LGDTF 13.76% * Rates are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42). 63 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 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 were $1,556,705 for the year ended December 31, 2024. 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 the discretely presented component units for the year ended December 31, 2024 were as follows: Contributions Primary Government Governmental Activities $ 818,885 Powe an Communications Fun 481,559 Water Fund 256,261 Total rimary governmen 1,556,705 Discretely Presented Componen Uni s 142,542 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2024, the Town and the discretely presented component units reported a net pension liability as follows: et Pension Liabilit Primary Government Governmental Activities $ 4,644,352 Powe an Communications Fun 3,104,123 Water Fund 1,139,069 Total rimary governmen 8,987,544 Discretely Presented Componen Units 1,122,936 The net pension liability for the LGDTF was measured as of December 31, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. Standard update procedures were used to roll- forward the total pension liability to December 31, 2023. The Town’s proportion of the net pension liability was based on The Town contributions to the LGDTF for the calendar year 2023 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: 64 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) December 31, 2023 December 31, 2022 Chan e Primary Governmen Governmental Activities 0.633% 0.585% 0.048% Power and Communications Fun 0.423% 0.407% 0.016% Water Fund 0.169% 0.174% (0.006%) Total primary government 1.224% 1.166% 0.058% For the year ended December 31, 2024, the Town and the discretely presented component units reported pension expense as follows: Pension Expense Primary Government Governmental Activities $46,626 Power and Communications Fund 29,671 Wate Fund 29,671 Total rimar overnment $105,968 Com onent Unit – Visit Estes Park $ 3,563 Component Unit – EPHA $ 43,575 At December 31, 2024, the Town and the discretely presented component units reported deferred outflows of resources from the following: 65 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Differences between projected and actual earnings on pension plan investments 1,375,369$ 812,252$ 436,002$ 2,623,623$ Changes in proportion and differences between Town contributions and proportionate share of contributions 76,820 51,344 20,495 148,659 Differences between expected and actual experience 251,338 167,985 67,055 486,378 Town contributions subsequent to measurement date 818,885 481,559 256,261 1,556,705 Total deferred outflows of resources 2,522,412$ 1,513,140$ 779,813$ 4,815,365$ Visit Estes Park Estes Park Housing Authority Deferred outflows of resources: Differences between projected and actual earnings on pension plan investments 222,457$ 105,444$ Differences between expected and actual experience 41,228 19,542 Contributions subsequent to measurement date 142,542 - Total deferred outflows of resources 406,227$ 124,986$ At December 31, 2024, the Town and its discretely presented component units reported deferred inflows of resources from the following sources: 66 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Differences between expected and actual experience 4,771$ 3,188$ 1,274$ 9,233$ Total deferred inflows of resources 4,771$ 3,188$ 1,274$ 9,233$ Component unit Visit Estes Park Estes Park Housing Authority Deferred inflows of resources: Differences between expected and actual experience 783$ 371$ Total deferred inflows of resources 783$ 371$ The amounts above reported in governmental activities, Power and Communications Fund, the Water Fund and the discretely presented component units 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, 2025. Within the governmental funds, the general fund is typically used to liquidate pension liabilities. Other amounts related to pensions will be recognized in pension expense as follows: Primary Government Governmental Activities Power and Communications Fund Water Fund Total 2025 340,259$ 200,628$ 107,348$ 648,235$ 2026 583,415 344,003 184,061 1,111,479 2027 1,161,818 685,050 366,540 2,213,408 2028 (386,736) (201,288) (135,671) (723,695) Total 1,698,756$ 1,028,393$ 522,278$ 3,249,427$ 67 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Component Unit Visit Estes Park Estes Park Housing Authority 2025 29,705$ 31,154$ 2026 94,215 31,154 2027 187,620 31,154 2028 (48,638) 31,153 Total 262,902$ 124,615$ Actuarial assumptions. The TPL in the December 31, 2022, actuarial valuation was determined using the following actuarial cost method, actuarial assumptions, and other inputs: Actuarial Cost Method Entry Age Price Inflation 2.30% Real Wage Growth 0.70% Wage Inflation 3.00% Salary Increases, Including Wage Inflation 3.20 – 11.30% Long-Term Investment Rate of Return, Net of Pension Plan Investment Expenses, Including Price Inflation 7.25% Discount Rate 7.25% PERA Benefit Structure Hire Prior to January 1, 2007 and DPS Benefit Structure (Automatic) 1.00% PERA Benefit Structure Hire After December 31, 2006 (Ad Hoc, Substantively Automatic) Finance by the Annual Increase Reserve Post-retirement benefit increases are provided by the AIR, accounted separately within each Division Trust Fund, and subject to moneys being available; therefore, liabilities related to increases for members of these benefit tiers can never exceed available assets. The mortality tables described below are generational mortality tables developed on a benefit-weighted basis. Pre-retirement mortality assumptions for members other than Safety Officers were based upon the PubG-2010 Employee Table with generational projection using scale MP-2019. Pre-retirement mortality assumptions for Safety Officers were based upon the PubS-2010 Employee Table with generational projection using scale MP-2019. 68 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Post-retirement non-disabled mortality assumptions for members other than Safety Officers 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. Post-retirement non-disabled mortality assumptions for Safety Officers were based upon the unadjusted PubS-2010 Healthy Retiree Table, with generational projection using scale MP-2019. Post-retirement non-disabled beneficiary mortality assumptions were based upon the Pub-2010 Contingent Survivor Table, adjusted as follows: • Males: 97% of the rates for all ages, with generational projection using scale MP-2019. • Females: 105% of the rates for all ages, with generational projection using scale MP-2019. Disabled mortality assumptions for members other than Safety Officers were based upon the PubNS- 2010 Disabled Retiree Table using 99% of the rates for all ages with generational projection using scale MP-2019. Disabled mortality assumptions for Safety Officers were based upon the unadjusted PubS-2010 Disabled Retiree Table with generational projection using scale MP-2019. The actuarial assumptions used in the December 31, 2022, 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 the PERA Board on November 20, 2020. The long-term expected return on plan assets is reviewed as part of regularly scheduled experience studies performed at least every five years and asset/liability studies performed every three to five years for PERA. 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: 69 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) Asset Class Target Allocation 30-Year Expected Geometric Real Rate of Return Global E uit 54.00% 5.60% Fixe Income 23.00 1.30 Private Equit 8.50 7.10 Real Estate 8.50 4.40 Alternatives 6.00 4.70 Total 100.00 Note: 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 nominal rate of return assumption of 7.25%. Discount rate. The discount rate used to measure the TPL was 7.25%. 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 and 2020 AAP assessments. 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 and 2020 AAP assessments. 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 health care 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 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. 70 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) • Beginning with the December 31, 2023, measurement date and thereafter, the FNP as of the current measurement date is used as a starting point for the GASB 67 projection test. As of the December 31, 2023, measurement date, the FNP and related disclosure components for the Local Government Division reflect payments related to the disaffiliation of Tri-County Health Department as a PERA-affiliated employer, effective December 31, 2022. As of the December 31, 2023, year-end, PERA recognized two additions for accounting and financial reporting purposes: a $24 million payment received on December 4, 2023 and a $2 million receivable. The employer disaffiliation payment and receivable allocations to the Local Government Division Trust Fund were $24.967 million. The District’s proportionate share of the increase in FNP as a result of this transaction was $305,694. Based on the above assumptions and methods, the LGDTF’s FNP was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25% on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25%. There was no change in the discount rate from the prior measurement date. Sensitivity of the Town’s proportionate share of the net pension liability to changes in the discount rate- The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.25%) or 1- percentage point higher (8.25%) than the current rate: 1% Decrease (6.25%) Current 1% Increase (8.25%) Primary government 17,616,587$ 8,987,544$ 1,759,318$ Component units: Visit Estes Park 1,493,271$ 761,831$ 149,129$ Estes Park Housing Authority 707,806$ 361,105$ 70,687$ Pension plan fiduciary net position. . Detailed information about the LGDTF’s FNP is available in PERA’s ACFR which can be obtained at www.copera.org/investments/pera-financial-reports. Notes to the Required Supplementary Information Note 1—Significant Changes in Plan Provisions Affecting Trends in Actuarial Information 2023 Changes in Plan Provisions Since 2022 As of the December 31, 2023, measurement date, the fiduciary net position (FNP) and related disclosure components for the Local Government Division reflect payments related to the disaffiliation of Tri-County Health Department (Tri-County Health) as a PERA-affiliated employer, effective December 31, 2022. 71 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 9. Defined Benefit Pension Plan (continued) •As of the December 31, 2023, year-end, PERA recognized two additions for accounting and financial reporting purposes: a $24 million payment received on December 4, 2023 and a $2 million receivable. The employer disaffiliation payment and receivable allocations to the Local Government Division Trust Fund and Health Care Trust Fund (HCTF) were $24.967 million and $1.033 million, respectively. •As of the December 31, 2023, measurement date, the total pension liability (TPL) recognizes the change in the default method applied for granting service accruals for certain members, from a "12-pay" method to a "non-12-pay" method. The default service accrual method for positions with an employment pattern of at least eight months but fewer than 12 months (including, but not limited to positions in the School and DPS Divisions) receive a higher ratio of service credit for each month worked, up to a maximum of 12 months of service credit per year. Note 2—Significant Changes in Assumptions or Other Inputs Affecting Trends in Actuarial Information 2023 Changes in Assumptions or Other Inputs Since 2022 There were no changes made to the actuarial methods or assumptions. 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, 2024, the Town and employee contributions were $82,122 and $50,008, 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, 2024, the Town and employee contributions were $401,236 and $244,339, respectively, equal to the required contributions. 72 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits OPEB Liabilities, and Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2024, the Town and its discretely presented component units 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 $354,442 674,911$ 1,029,353$ $ 96,434 251,137$ 347,571$ 110,545$ 80,357$ 190,902$ Power and Communications Fun 208,561 - 208,561 56,569 - 56,569 64,861 - 64,861 Water Fund 111,237 - 111,237 30,171 - 30,171 34,594 - 34,594 Total primary government $674,240 $ 674,911 $1,349,151 $ 183,174 $ 251,137 $ 434,311 $ 210,000 $ 80,357 $ 290,357 Component Units Visit Estes Park 58,889$ -$ 58,889$ 22,013$ -$ 22,013$ 18,314$ -$ 18,314$ Estes Park Housing Authority 27,914$ -$ 27,914$ 1,192$ -$ 1,192$ 8,681$ -$ 8,681$ Net OPEB Liability Deferred Outflows of Resources Deferred Inflows of Resources Summary of Significant Accounting Policies OPEB. The Town of Estes Park, Colorado participates 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 (FNP) and additions to/deductions from the FNP 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. General Information about the OPEB 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, and 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 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. 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). 73 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) 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. 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 health benefits program 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 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% 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 B and 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. For retirees who have not participated in Social Security and who are not otherwise eligible for premium-free Medicare Part A for hospital-related services, the HCTF or the DPS HCTF pays an alternate service-based premium subsidy. Each individual retiree meeting these conditions receives the maximum $230 per month subsidy reduced appropriately for service less than 20 years, as described above. Retirees who do not have Medicare Part A pay the difference between the total premium and the monthly subsidy. 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% 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 $109,059 for the year ended December 31, 2024. 74 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 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, 2024, the Town and its discretely presented component units reported a net OPEB liability as follows: Net OPEB Liability Primary Government Governmental Activities $ 354,442 Power and Communications Fund 208,561 Wate Fund 111,237 Total rimar overnment $ 674,240 Com onent Unit – Visit Estes Park $ 58,889 Com onent Unit – EPHA $ 27,914 The net OPEB liability for the HCTF was measured as of December 31, 2023, and the total OPEB liability (TOL) used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2022. Standard update procedures were used to roll-forward the TOL to December 31, 2023. The Town's proportion of the net OPEB liability was based on the Town’s contributions to the HCTF for the calendar year 2023 relative to the total contributions of participating employers to the HCTF. At December 31, 2023, the Town's proportion was 0.0946 percent, which was a increase of 0.0002 percent from its proportion measured as of December 31, 2022. For the year ended December 31, 2024, the Town recognized OPEB benefit of $12,086. Visit Estes Park recognized OPEB benefit of $5,743, and EPHA recognized an OPEB benefit of $3,901. At December 31, 2024, the Town and its discretely presented component units reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 75 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Changes in proportion and differences between Town contributions and proportionate share of contributions 23,841$ 13,988$ 7,461$ 45,290$ Changes in assumptions or other inputs 4,180 2,453 1,308 7,941 Differences between projected and actual earnings on plan investments 10,993 6,451 3,440 20,884 Town contributions subsequent to measurement date 57,420 33,677 17,962 109,059 Total deferred outflows of resources 96,434$ 56,569$ 30,171$ 183,174$ Component unit Visit Estes Park Estes Park Housing Authority Deferred outflows of resources: Changes in proportion and differences between contributions and proportionate share of contributions 8,934$ -$ Changes in assumptions or other inputs 692 328 Net differences between projected and actual earnings on plan investments 1,821 864 Contributions subsequent to measurement date 10,566 - Total deferred outflows of resources 22,013$ 1,192$ 76 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Changes in assumptions or other inputs 37,690$ 22,115$ 11,795$ 71,600$ Differences between expected and actual experience 72,855 42,746 22,799 138,400 Total deferred inflows of resources 110,545$ 64,861$ 34,594$ 210,000$ Component unit Visit Estes Park Estes Park Housing Authority Deferred inflows of resources: Changes in assumptions or other inputs 6,244$ 2,960$ Differences between expected and actual experience 12,070 5,721 Total deferred inflows of resources 18,314$ 8,681$ The $109,059 in contribution reported in governmental activities, Power and Communications Fund, the Water Fund and Visit Estes Park as deferred outflow of resources related to OPEB, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2025. Within governmental activities, the general fund is typically used to liquidate OPEB liabilities. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 77 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total 2025 (35,453)$ (23,695)$ (10,299)$ (69,447)$ 2026 (16,590) (11,088) (4,819) (32,497) 2027 (3,189) (2,132) (927) (6,248) 2028 (13,463) (8,998) (3,911) (26,372) 2029 (2,770) (1,851) (804) (5,425) Thereafter 2,096 1,400 608 4,104 Total (69,369)$ (46,364)$ (20,152)$ (135,885)$ Component Unit Visit Estes Park Estes Park Housing Authority 2025 1,184$ (2,418)$ 2026 (3,576) (2,404) 2027 (450) (1,198) 2028 (1,996) (756) 2029 (1,729) (485) Thereafter (300) (228) Total (6,867)$ (7,489)$ Actuarial assumptions. The total OPEB liability in the December 31, 2021 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 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 7.00% in 2023, gradually decreasing to 4.50% in 20333.75 percent in 2022, 3.50% in 2023, gradually increasing to 4.50% in 2035 1 UnitedHealthcare MAPD PPO plans are 0% for 2023. 78 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Each year the per capita health care costs are developed by plan option; currently based on 2023 premium rates for the UnitedHealthcare Medicare Advantage Prescription Drug (MAPD) PPO plan #1, the UnitedHealthcare MAPD PPO plan #2, and the Kaiser Permanente MAPD HMO plan. Actuarial morbidity factors are then applied to estimate individual retiree and spouse costs by age, gender, and health care cost trend. This approach applies for all members and is adjusted accordingly for those not eligible for premium-free Medicare Part A for the PERA benefit structure. Age-Related Morbidity Assumptions Participant Age Annual Increase (Male) Annual Increase Female 65-68 2.2%2.3% 69 2.8% 2.2% 70 2.7% 1.6% 71 3.1% 0.5% 72 2.3% 0.7% 73 1.2% 0.8% 74 0.9% 1.5% 75-85 0.9%1.3% 86 and older 0.0% 0.0% Sample Age MAPD PPO #1 with Medicare Part A MAPD PPO #2 with Medicare Part A MAPD HMO (Kaiser) with Medicare Part A Retiree/Spouse Retiree/Spouse Retiree/Spouse Male Female Male Female Male Female 65 $1,692 $1,406 $579 $481 $1,913 $1,589 70 $1,901 $1,573 $650 $538 $2,149 $1,778 75 $2,100 $1,653 $718 $566 $2,374 $1,869 Sample Age MAPD PPO #1 without Medicare Part A MAPD PPO #2 without Medicare Part A MAPD HMO (Kaiser) without Medicare Part A Retiree/Spouse Retiree/Spouse Retiree/Spouse Male Female Male Female Male Female 65 $6,469 $5,373 $4,198 $3,487 $6,719 $5,581 70 $7,266 $6,011 $4,715 $3,900 $7,546 $6,243 75 $8,026 $6,319 $5,208 $4,101 $8,336 $6,563 79 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) The 2023 Medicare Part A premium is $506 per month. 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, 2022, 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 used to measure the TOL are summarized in the table below: Year PERACare Medicare Plans Medicare Part A Premiums 2023 7.00% 3.50% 2024 6.75% 3.50% 2025 6.50% 3.75% 2026 6.25% 3.75% 2027 6.00% 4.00% 2028 5.75% 4.00% 2029 5.50% 4.00% 2030 5.25% 4.25% 2031 5.00% 4.25% 2032 4.75% 4.25% 2033 4.50% 4.25% 2034 4.50% 4.25% 2035+ 4.50% 4.50% Mortality assumptions used in the December 31, 2022, valuation for the determination of the total pension liability for each of the Division Trust Funds as shown below, reflect generational mortality and were applied, as applicable, in the determination of the TOL for the HCTF, but developed on a headcount-weighted basis. Affiliated employers of the State, School, Local Government and Judicial Divisions participate in the HCTF. Pre-retirement mortality assumptions for the State and Local Government Divisions (members other than Safety Officers) were based upon the PubG-2010 Employee Table with generational projection using scale MP-2019. 80 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Pre-retirement mortality assumptions for Safety Officers were based upon the PubS-2010 Employee Table with generational projection using scale MP-2019. Pre-retirement mortality assumptions for the School Division were based upon the PubT-2010 Employee Table with generational projection using scale MP-2019. Pre-retirement mortality assumptions for the Judicial Division were based upon the PubG-2010(A) Above-Median 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 Safety Officers) 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. Post-retirement non-disabled mortality assumptions for Safety Officers were based upon the unadjusted PubS-2010 Healthy Retiree Table, with generational projection using scale MP-2019. Post-retirement non-disabled mortality assumptions for the School Division were based upon the PubT-2010 Healthy Retiree Table, adjusted as follows: • Males: 112% of the rates prior to age 80 and 94% of the rates for ages 80 and older, with generational projection using scale MP-2019. • Females: 83% of the rates prior to age 80 and 106% of the rates for ages 80 and older, with generational projection using scale MP-2019. Post-retirement non-disabled mortality assumptions for the Judicial Division were based upon the unadjusted PubG-2010(A) Above-Median Healthy Retiree Table with generational projection using scale MP-2019. Post-retirement non-disabled beneficiary mortality assumptions were based upon the Pub-2010 Contingent Survivor Table, adjusted as follows: • Males: 97% of the rates for all ages, with generational projection using scale MP-2019. • Females: 105% of the rates for all ages, with generational projection using scale MP-2019. Disabled mortality assumptions for members other than Safety Officers were based upon the PubNS- 2010 Disabled Retiree Table using 99% of the rates for all ages with generational projection using scale MP-2019. Disabled mortality assumptions for Safety Officers were based upon the unadjusted PubS-2010 Disabled Retiree Table with generational projection using scale MP-2019. The following health care costs assumptions were updated and used in the roll-forward calculation for the HCTF: • Per capita health care costs in effect as of the December 31, 2022, valuation date for those PERACare enrollees under the PERA benefit structure who are expected to be age 65 and older and are not eligible for premium-free Medicare Part A benefits have been updated to reflect costs or the 2023 plan year. 81 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) •The morbidity rates used to estimate individual retiree and spouse costs by age and by gender were updated effective for the December 31, 2022, actuarial valuation. The revised morbidity rate factors are based on a review of historical claims experience by age, gender, and status (active versus retired) from actuary's claims data warehouse. •The health care cost trend rates applicable to health care premiums were revised to reflect the then current expectation of future increases in those premiums. Actuarial assumptions pertaining to per capita health care costs and their related trend rates are analyzed and updated annually by PERA Board’s actuary, as discussed above. The actuarial assumptions used in the December 31, 2022, 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. The long-term expected return on plan assets is reviewed as part of regularly scheduled experience studies performed at least every five years, and asset/liability studies, performed every three to five years for PERA. 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% Note: 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 nominal rate of return assumption of 7.25%. 82 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Sensitivity of the Town's proportionate share of the net OPEB liability to changes in the Health CareCost 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 5.75% 6.75% 7.75% Ultimate PERACare Medicare 3.50% 4.50% 5.50% Initial Medicare Part A trend rate 2.50% 3.50% 4.50% Ultimate Medicare Part A trend rate 3.50% 4.50% 5.50% Town's Net OPEB liability 655,876$ 674,240$ 696,338$ Component unit net OPEB liability Visit Estes Park 57,199$ 58,889$ 60,727$ Estes Park Housing Authority 32,970$ 27,914$ 23,588$ 1For the January 1, 2024, plan year. Discount rate. The discount rate used to measure the TOL was 7.25%. 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, 2023, 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 actuarially determined contributions assuming an analogous future plan member growth rate. • Estimated transfers of dollars into the HCTF 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. • Beginning with the December 31, 2023, measurement date and thereafter, the FNP as of the current measurement date is used as a starting point for the GASB 74 projection test. 83 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) • As of the December 31, 2023, measurement date, the FNP and related disclosure components for the HCTF reflect payments related to the disaffiliation of Tri-County Health Department as a PERA-affiliated employer, effective December 31, 2022. As of the December 31, 2023, year-end, PERA recognized two additions for accounting and financial reporting purposes: a $24 million payment received on December 4, 2023, and a $2 million receivable. The employer disaffiliation payment and receivable allocations to the HCTF were $1.033 million. The District’s proportionate share of the increase in FNP as a result of this transaction was $977. Based on the above assumptions and methods, the FNP for the HCTF was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25% on OPEB plan investments was applied to all periods of projected benefit payments to determine the TOL. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25%. There was no change in the discount rate from the prior measurement date. Sensitivity of the Town's proportionate share of the net OPEB liability to changes in the discount rate. The following presents the proportionate share of the net OPEB liability calculated using the discount rate of 7.25%, as well as what the proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage- point higher (8.25%) than the current rate: 1% Decrease (6.25%) Current 1% Increase (8.25%) Primary government 797,563$ 674,240$ 570,623$ Component unit Visit Estes Park 69,555$ 58,889$ 49,764$ Estes Park Housing Authorit 32,970$ 27,914$ 23,588$ OPEB plan fiduciary net position. Detailed information about the HCTF’s FNP is available in PERA’s ACFR which can be obtained at www.copera.org/investments/pera-financial-reports. Notes to the Required Supplementary Information Note 1—Significant Changes in Plan Provisions Affecting Trends in Actuarial Information 2023 Changes in Plan Provisions Since 2022 •As of the December 31, 2023, measurement date, the fiduciary net position (FNP) and related disclosure components for the Health Care Trust Fund (HCTF) reflect payments related to the disaffiliation of Tri-County Health Department (Tri-County Health) as a PERA-affiliated employer, effective December 31, 2022. As of the December 31, 2023, year-end, PERA recognized two additions for accounting and financial reporting purposes: a $24 million payment received on December 4, 2023, and a $2 million receivable. 84 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) •The employer disaffiliation payment and receivable allocations to the HCTF and Local Government Division Trust Fund were $1.033 million and $24.967 million, respectively. Note 2—Significant Changes in Assumptions or Other Inputs Affecting Trends in Actuarial Information 2023 Changes in Assumptions or Other Inputs Since 2022 •There were no changes made to the actuarial methods or assumptions. 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, 2024 the following employees were covered by the benefit terms: Active employees 47 Retired members 3 Total 50 Total OPEB Liability The Town's total OPEB liability of $674,911 was measured as of December 31, 2023 was determined by an actuarial valuation as of January 1, 2024. Actuarial assumptions and other inputs. The total OPEB liability in the January 1, 2024 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry Age Normal Price inflation 2.30 percent Salary increases, including wage inflation 3.00 percent Discount rate 3.26 percent The discount rate was based on the Bond Buyers General Obligation 20-Bond Municipal Bond Index. 85 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) Mortality rates were based on the following: •Pre-retirement: Sex-distinct Pub-2010 General Employee Mortality Tables adjusted to reflect Mortality Improvement Scale MP-2021 from the 2010 base year, and projected forward using MP-2021 on a generational basis •Post-retirement: Sex-distinct Pub-2010 General Healthy Retiree Mortality Tables adjusted to reflect Mortality Improvement Scale MP-2021 from the 2010 base year, and projected forward using MP-2021 on a generational basis The actuarial assumptions used in the January 1, 2024 valuation were based on a prior study on retirement used by a pension plan covering a population similar to that of the Town's current active employees. Actual experience is annually compared to that expected to ensure the assumed retirement rates continue to be reasonable. Changes in the Total OPEB Liability: Total OPEB Liability Balance at December 31, 2023 462,022$ Changes for the year: Service cost 16,823 Interest on total OPEB liability 17,458 Effect of economic/demographic gains or losses 106,573 Effect of assumptions changes or inputs 91,309 Benefit payments (19,274) Balance at December 31, 2024 674,911$ 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 or 1- percentage-point higher than the current discount rate: 1% Decrease (2.72%) Current 1% Increase (4.72%) Primary government 708,027$ 674,911$ 644,553$ 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: 86 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 11. Post-Employment Healthcare Benefits (continued) 1% Decrease Current Trend Rate 1% Increase Primary government 639,907$ 674,911$ 714,933$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2024, the Town recognized OPEB expense of $56,774. At December 31, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Differences between expected and actual experience 112,049$ -$ -$ 112,049$ Changes of assumptions 114,966 - - 114,966 Town contributions subsequent to measurement date 24,122 - -24,122 Total deferred outflows of resources 251,137$ -$ -$251,137$ Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Changes of assumptions 80,357$ -$ -$ 80,357$ Total deferred inflows of resources 80,357$ -$ -$80,357$ 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, 2025. 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 Amortization 2025 22,493$ 2026 22,493 2027 21,184 2028 25,167 2029 30,451 Thereafte 24,870 Total 146,658$ 87 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 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 $60,000 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 $543,655 as of December 31, 2024, represents an estimate of incurred but not reported claims. This plan is an internal service fund. Beginning in 2024, fund claims are reported net of loss assumed by the insurer. 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. In 2022, voters approved Ballot measure 6E allowing for an additional 3.5% tax to be levied, in support of workforce housing and childcare initiatives. Most of these funds are passed through to the Town of Estes Park. The Town and Visit Estes Park have established emergency reserves, representing 3% of qualifying revenues, as required by the Amendment. At December 31, 2024, the emergency reserves of $784,793 and $132,273 respectively, were reported as restricted net position. In addition, the Town's emergency reserve was reported as restricted fund balance in the General Fund. 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, 2024, 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. 88 Town of Estes Park Notes to Financial Statements (continued) December 31, 2024 14. Adjustments and restatement of beginning balances During 2024, the Town has restated beginning net position in the government wide governmental activities, and the business-type activities . The purpose of the restatement is to implement GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the Town now recognizes an estimated amount of sick leave earned and unvested as of year-end that will be used by employees as time off in the future years as part of the liability for compensated absences. Additionally, the Town identified a subscription-based information technology agreement for Police equipment that was previously unreported. The effects of the change in net position related to the change in accounting principle and correction of an error are summarized in the table below. 12/31/2023, As Previously Reported Restatement - GASB 101 implementation Error correction 12/31/2023, As Restated Government-Wide Governmental Activities Net Position 99,859,399$ (681,836)$ 848$ 99,177,563$ Business-type Activities Net Position 87,853,148 (408,514) -87,444,634 Total Primary Government 187,712,547$ (1,090,350)$ 848$ 186,622,197$ Governmental Funds Fund Balances - all funds 27,162,532$ -$ -$ 27,162,532$ Proprietary Funds Power and Communications Fund 42,696,578 (258,192) - 42,438,386 Water Fund 42,930,779 (136,627) - 42,794,152 Workforce Housing Linkage Impact Fee Fund 742,589 - - 742,589 Internal service funds 1,483,202 (13,695) -1,469,507 Total proprietary funds 87,853,148$ (408,514)$ -$ 87,444,634$ 89 Town of Estes Park, Colorado Required Supplementary Information Town of Estes Park, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes Sales taxes $ 18,254,054 $ 17,930,334 $ 17,753,337 $ (176,997) Property taxes 478,114 478,114 519,647 41,533 Franchise taxes 676,503 676,503 669,283 (7,220) Use taxes 350,000 350,000 375,205 25,205 Total Taxes 19,758,671 19,434,951 19,317,471 (117,480) Licenses and permits 955,900 791,900 765,960 (25,940) Intergovernmental 430,254 629,704 691,845 62,141 Charges for services 1,058,432 1,058,432 1,148,561 90,129 Fines and forfeitures 27,000 27,000 27,360 360 Contributions and donations 31,500 127,500 137,280 9,780 Investment income 500,000 550,000 633,437 83,437 Miscellaneous 799,038 799,038 813,767 14,729 Total Charges for Services 3,802,124 3,983,574 4,218,209 234,635 TOTAL REVENUES $23,560,795 $23,418,525 $23,535,681 $117,156 EXPENDITURES General Government Legislative $ 367,746 $ 385,746 $ 316,634 $ 69,112 Attorney 399,522 399,871 374,898 24,973 Judicial 54,756 55,268 25,559 29,709 Town administrator 488,850 545,712 451,713 93,999 Town clerk 440,351 560,011 414,635 145,377 Financial administration 735,025 744,277 729,974 14,303 Planning division 871,692 1,139,472 688,638 450,834 Facilities 2,247,087 2,244,278 1,395,654 848,624 Community services -- Outside entity funding 1,699,176 2,150,737 2,092,813 57,924 Human Resources 444,771 449,342 228,693 220,649 Total General Government 7,748,976 8,674,714 6,719,210 1,955,504 Public Safety Police 7,830,431 7,815,377 6,673,070 1,142,307 Protective inspection 749,481 547,759 503,011 44,748 Total Public Safety 8,579,912 8,363,136 7,176,082 1,187,054 Public Works Engineering 610,128 622,666 543,889 78,777 Transit 758,896 969,900 774,784 195,116 Streets 1,407,999 1,470,706 1,365,507 105,199 Stormwater maintenance 611,863 640,745 240,927 399,818 Total Public Works 3,388,886 3,704,017 2,925,107 778,910 Culture and Recreation Parks 1,848,809 1,961,458 1,296,882 664,576 Visitor services 563,830 682,633 526,375 156,258 Museum 514,308 635,993 561,166 74,827 Special events 2,977,176 3,005,448 2,501,177 504,271 Total Culture and Recreation 5,904,123 6,285,532 4,885,600 1,399,932 Capital outlay -42,630 10,214 32,416 Debt Service Principal --61,512 (61,512) Interest --19,193 (19,193) TOTAL EXPENDITURES 25,621,897 27,070,029 21,796,918 5,273,111 Excess (deficiency) of revenues over expenditures (2,061,102)(3,651,504)1,738,763 5,390,267 OTHER FINANCING SOURCES AND (USES) Transfers in 1,511,157 1,609,231 1,511,148 (98,083) Transfers out (1,860,440)(4,781,515)(4,781,515)(0) TOTAL OTHER FINANCING SOURCES AND (USES)(349,283)(3,172,284)(3,270,367)(98,083) NET CHANGE IN FUND BALANCE $(2,410,385)$(6,823,788)$(1,531,604)$5,292,184 FUND BALANCES, BEGINNING OF YEAR 10,717,827 10,717,827 15,464,578 4,746,751 Use of Reserves 776,000 --- FUND BALANCES, END OF YEAR $9,083,442 $3,894,039 $13,932,974 $10,038,935 90 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $ 1,102,011 $ 2,314,537 $ 2,291,737 $ (22,800) Intergovernmental -1,270,804 81,506 (1,189,298) Investment income 20,000 20,000 250,855 230,855 TOTAL REVENUES 1,122,011 3,605,341 2,624,098 (981,243) EXPENDITURES Current: Operations and Maintenance 287,114 133,114 73,441 59,673 Personnel Services 41,915 78,432 136,753 (58,321) Capital outlay 831,400 7,152,317 1,036,338 6,115,979 TOTAL EXPENDITURES 1,160,429 7,363,863 1,246,531 6,117,332 NET CHANGE IN FUND BALANCE (38,418)(3,758,522)$1,377,567 $5,136,089 FUND BALANCE, BEGINNING OF YEAR 777,301 5,431,370 5,431,370 FUND BALANCE, END OF YEAR $738,883 $1,672,848 $6,808,937 91 Town of Estes Park, Colorado Workforce Housing/ Childcare Lodging Tax Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $ 5,375,000 $ 7,400,778 $ 5,650,243 $ (1,750,535) Investment income 5,000 5,000 -(5,000) Intergovernmental -2,000,000 28,933 (1,971,067) Charges for services --6,232 6,232 TOTAL REVENUES 5,380,000 9,405,778 5,685,408 (3,720,370) EXPENDITURES Current: Operations and Maintenance 5,000,000 7,015,112 5,126,383 1,888,729 Personnel Services 157,470 207,670 134,278 73,392 Capital outlay -2,725,000 694,768 2,030,232 TOTAL EXPENDITURES 5,157,470 9,947,782 5,955,429 3,992,353 OTHER FINANCING SOURCES AND (USES) Transfers in -425,000 425,000 - TOTAL OTHER FINANCING SOURCES AND (USES)-425,000 425,000 - NET CHANGE IN FUND BALANCE $222,530 $(117,004)$154,979 $271,983 FUND BALANCE, BEGINNING OF YEAR -365,965 365,965 FUND BALANCE, END OF YEAR $222,530 $248,961 $520,944 92 Town of Estes Park, Colorado Retirement Plan Supplementary Information For the Year Ended December 31, 2024 Schedule of Proportionate Share of the Net Pension and OPEB Liability and Related Ratios Colorado PERA - Pension Proportionate Proportion of Share of the Net Actual Net Pension Liability Fiduciary Net Position the Net Pension Pension Liability Member as a Percentage as a Percentage of Year Ending*Liability (Asset)Payroll of Member Payroll Total Pension Liability 12/31/2015 0.927%$ 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)$8,901,035 -11.68%101.49% 12/31/2023 1.166%$ 1,002,563 $9,390,182 10.68%82.99% 12/31/2024 1.224%$ 8,987,545 $10,442,758 86.06%88.03% Colorado PERA - OPEB Proportion of Proportionate Actual OPEB Liability Fiduciary Net Position the Net OPEB Share of the Net Member as a Percentage as a Percentage of Year Ending*Liability OPEB Liability Payroll of Member Payroll Total OPEB Liability 12/31/2017 0.085%$ 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 $8,901,035 9.01%39.40% 12/31/2023 0.093%$ 755,500 $9,390,182 8.05%38.57% 12/31/2024 0.095%$ 675,256 $10,442,758 6.47%38.57% Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available. * 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. Schedule of Employer Contributions 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 12/31/2014 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% 12/31/2023 1,487,114 1,487,114 -10,442,758 14.24% 12/31/2024 1,555,928 1,555,928 -10,692,093 14.55% 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% 12/31/2023 106,516 106,516 -10,442,758$10,442,758 1.02% 12/31/2024 109,059 109,059 -10,692,093$10,692,093 1.02% Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available. The accompanying notes are an integral part of these financial statements. 93 Town of Estes Park, Colorado Schedule of Changes in the Town's Total OPEB Liability and Related Ratios - Retiree Medical Insurance Plan December 31, 2024 Year Ended December 31,2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost $ 16,823 $ 21,600 $ 23,808 $ 20,891 $ 27,201 $ 30,281 $ 27,609 Interest on total OPEB liability 17,459 10,664 9,569 11,529 20,137 18,576 20,240 Effect of economic/demographic gains or losses 106,573 ------ Differences between expected and actual experience --23,045 -13,372 -- Changes of assumptions or other inputs 91,309 (52,850)37,240 18,548 (76,080)(23,110)11,799 Benefit payments (19,274)(26,791)(23,506)(23,013)(73,844)(69,396)(46,251) Net change in total OPEB liability 212,890 (47,377)70,156 27,955 (89,214)(43,649)13,397 Total OPEB liability - beginning 462,021 509,398 439,242 411,287 500,501 544,150 530,753 Total OPEB liability - ending $674,911 $462,021 $509,398 $439,242 $411,287 $500,501 $544,150 Covered employee payroll $ 14,978,671 $ 12,192,905 $ 12,669,436 $ 11,115,810 $ 11,175,908 $ 10,542,533 $ 10,015,583 Total OPEB liability as a percentage of covered payroll 4.51%3.79%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. 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. 94 Town of Estes Park, Colorado Other Supplementary Information Town of Estes Park, Colorado Combining Balance Sheet Nonmajor Governmental Funds December 31, 2024 TRAILS EMERGENCY COMMUNITY TRAILS PARKING WILDFIRE IMPROVEMENT TOTAL NONMAJOR OPEN SPACE CONSERVATION RESPONSE CENTER EXPANSION SERVICES MITIGATION EXTENSION STORMWATER GOVERNMENTAL FUND TRUST FUND SYSTEM FUND FUND FUND FUND FUND FUND FUND FUNDS ASSETS Cash and Investments $ 1,921,588 $ 129,115 $ 290,328 $193 $ 8,081 $ 567,486 $-$ 44,931 $ 589,260 $ 3,550,983 Accounts receivable 5,199 127 399 -4,040 5,568 ---15,333 Intergovernmental receivable 550,609 ---1,189,285 ----1,739,894 Taxes receivable --206 2,061 1,030 -45,030 62,541 140,092 250,960 Prepaid items -----1,794 ---1,794 TOTAL ASSETS $2,477,396 $129,242 $290,933 $2,254 $1,202,437 $574,848 $45,030 $107,473 $729,352 $ 5,558,964 LIABILITIES, DEFFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 67,200 $- $-$ 1,243 $ 25,766 $ 112,190 $ 45,030 $4,947 $-$256,376 Accrued liabilities 1,700 ---2,333 3,557 ---7,589 Due to other funds 310,000 --1,000 -----311,000 TOTAL LIABILITIES 378,900 --2,243 28,099 115,747 45,030 4,947 -574,965 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 267,888 ---788,560 ----1,056,448 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 646,787 --2,243 816,659 115,747 45,030 4,947 -1,631,413 FUND BALANCES Nonspendable -----1,794 ---1,794 Restricted for: Stormwater operations --------729,352 729,352 Parks and open space 1,830,609 129,242 -------1,959,851 Capital improvements --290,933 11 385,778 457,308 -102,525 -1,236,555 TOTAL FUND BALANCES 1,830,609 129,242 290,933 11 385,778 459,101 -102,525 729,352 3,927,551 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $2,477,396 $129,242 $290,933 $2,254 $1,202,437 $574,848 $45,030 $107,473 $729,352 $5,558,964$- 95 Town of Estes Park, Colorado Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures And Changes in Fund Balance For the Year Ended December 31, 2024 TRAILS TOTAL EMERGENCY COMMUNITY TRAILS PARKING WILDFIRE IMPROVEMENT NONMAJOR OPEN SPACE CONSERVATION RESPONSE CENTER EXPANSION SERVICES MITIGATION EXTENSION STORMWATER GOVERNMENTAL FUND TRUST FUND SYSTEM FUND FUND FUND FUND FUND FUND FUND FUNDS REVENUES Intergovernmental $ 1,125,477 $ 36,366 $ -$ -$ 666,440 $-$-$-$-$ 1,828,283 Charges for services -----593,936 ---593,936 Taxes --45,461 454,610 227,305 -234,914 326,270 730,844 2,019,404 Licenses and permits -----20,208 ---20,208 Fines and forfeitures -----49,661 ---49,661 Investment earnings 52,483 2,005 6,117 -20,212 18,978 ---99,796 TOTAL REVENUES 1,177,960 38,372 51,578 454,610 913,957 682,783 234,914 326,270 730,844 4,611,288 EXPENDITURES Current: General Government ------234,914 --234,914 Culture and Recreation 73,162 9,914 -454,610 -----537,686 Public Works ----100,970 635,018 --1,492 737,480 Capital Outlay 81,854 ---820,603 --223,744 -1,126,202 Debt Service: Principal --44,030 ------44,030 Interest --4,514 ------4,514 TOTAL EXPENDITURES 155,016 9,914 48,544 454,610 921,574 635,018 234,914 223,744 1,492 2,684,826 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,022,943 28,458 3,035 -(7,617)47,765 -102,525 729,352 1,926,462 OTHER FINANCING USES Transfers in (out)---------- TOTAL OTHER FINANCING USES ---------- NET CHANGE IN FUND BALANCE 1,022,943 28,458 3,035 -(7,617)47,765 -102,525 729,352 1,926,462 FUND BALANCE, BEGINNING OF YEAR 807,665 100,784 287,898 11 393,395 411,337 ---2,001,089 FUND BALANCE, END OF YEAR $1,830,609 $129,242 $290,933 $11 $385,778 $459,102 $-$102,525 $729,352 $3,927,551 96 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental $-$ 2,544,625 $ 573,679 $ (1,970,946) Investment income --182,033 182,033 Donations -67,500 -(67,500) TOTAL REVENUES -2,612,125 755,713 (1,856,412) EXPENDITURES Current Professional Services -544,434 182,476 361,958 Capital outlay 1,948,473 9,402,715 2,909,337 6,493,378 Debt Service Principal 750,057 750,057 747,056 3,001 Interest 170,261 170,261 171,760 (1,499) TOTAL EXPENDITURES 2,868,791 10,867,467 4,010,630 6,856,837 EXCESS OF EXPENDITURES OVER REVENUES (2,868,791)(8,255,342)(3,254,917)5,000,425 OTHER FINANCING SOURCES Transfers in 1,860,440 4,356,515 4,356,515 - TOTAL OTHER FINANCING SOURCES 1,860,440 4,356,515 4,356,515 - NET CHANGE IN FUND BALANCE $(1,008,351)$(3,898,827)$1,101,598 $5,000,425 FUND BALANCE, BEGINNING OF YEAR 1,013,351 3,899,530 3,899,530 FUND BALANCE, END OF YEAR $5,000 $703 $5,001,128 97 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental $ 450,000 $ 898,226 $ 1,125,477 $ 227,251 Investment income 30,000 30,000 52,483 22,483 TOTAL REVENUES 480,000 928,226 1,177,960 249,734 EXPENDITURES Current Culture and Recreation 210,037 220,952 73,162 147,790 Capital outlay 372,000 935,054 81,854 853,200 TOTAL EXPENDITURES 582,037 1,156,006 155,016 1,000,990 EXCESS OF EXPENDITURES OVER REVENUES (102,037)(227,780)1,022,943 1,250,723 NET CHANGE IN FUND BALANCE $(102,037)$(227,780)$1,022,943 $1,250,723 FUND BALANCE, BEGINNING OF YEAR 424,505 807,665 807,665 FUND BALANCE, END OF YEAR $322,468 $579,885 $1,830,609 98 Town of Estes Park, Colorado Conservation Trust Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental $ 34,000 $ 34,000 $ 36,366 $ 2,366 Investment Income --2,005 2,005 TOTAL REVENUES 34,000 34,000 38,372 4,372 EXPENDITURES Current Operations and Maintenance 35,000 35,000 9,914 25,086 Capital Outlay -19,000 -19,000 TOTAL EXPENDITURES 35,000 54,000 9,914 44,086 NET CHANGE IN FUND BALANCE (1,000)(20,000)28,458 48,458 FUND BALANCE, BEGINNING OF YEAR 58,815 100,783 100,784 FUND BALANCE, END OF YEAR $57,815 $80,783 $129,242 99 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $ 45,917 $ 45,488 $ 45,461 $ (27) Investment income --6,117 6,117 TOTAL REVENUES 45,917 45,488 51,578 6,090 EXPENDITURES Current Culture and Recreation 18,200 18,200 -18,200 Debt Service Principal 44,031 44,031 44,030 1 Interest 4,515 4,515 4,514 1 TOTAL EXPENDITURES 66,746 66,746 48,544 18,202 EXCESS OF EXPENDITURES OVER REVENUES (20,829)(21,258)3,035 24,293 NET CHANGE IN FUND BALANCE $(20,829)$(21,258)$3,035 $24,293 FUND BALANCE, BEGINNING OF YEAR 199,111 287,899 287,898 FUND BALANCE, END OF YEAR $178,282 $266,641 $290,933 100 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $459,171 $454,881 $454,610 $(271) TOTAL REVENUES 459,171 454,881 454,610 (271) EXPENDITURES Culture and Recreation 459,171 454,881 454,610 271 TOTAL EXPENDITURES 459,171 454,881 454,610 271 NET CHANGE IN FUND BALANCE $-$-$-$- FUND BALANCE, BEGINNING OF YEAR 11 11 11 FUND BALANCE, END OF YEAR $11 $11 $11 101 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental $ -$ 5,253,557 $ 666,440 $ (4,587,117) Taxes 229,585 227,441 227,305 (136) Investment income --20,212 20,212 TOTAL REVENUES 229,585 5,480,998 913,957 (4,567,041) EXPENDITURES Public Works 70,316 107,748 100,970 6,778 Capital outlay -5,527,776 820,603 4,707,173 TOTAL EXPENDITURES 70,316 5,635,524 921,574 4,713,950 EXCESS OF EXPENDITURES OVER REVENUES 159,269 (154,526)(7,617)146,909 NET CHANGE IN FUND BALANCE $159,269 $(154,526)$(7,617)$146,909 FUND BALANCE, BEGINNING OF YEAR (32,768)393,394 393,395 FUND BALANCE, END OF YEAR $126,501 $238,868 $385,778 102 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $ 776,250 $ 776,250 $ 593,936 $ (182,314) Parking permits and tickets 39,000 39,000 49,661 10,661 Licenses and permits 22,000 22,000 20,208 (1,792) Investment income --18,978 18,978 TOTAL REVENUES 837,250 837,250 682,783 (154,467) EXPENDITURES Public works 776,714 716,769 635,018 81,751 Capital outlay 2,002,000 --- TOTAL EXPENDITURES 2,778,714 716,769 635,018 81,751 EXCESS OF EXPENDITURES OVER REVENUES (1,941,464)120,481 47,765 (72,716) OTHER FINANCING SOURCES Lease financing proceeds 1,902,000 --- Transfers out -(98,074)-98,074 TOTAL OTHER FINANCING SOURCES 1,902,000 (98,074)-98,074 NET CHANGE IN FUND BALANCE $(39,464)$22,407 $47,765 $25,358 FUND BALANCE, BEGINNING OF YEAR 56,717 411,337 411,337 FUND BALANCE, END OF YEAR $17,253 $433,744 $459,102 103 Town of Estes Park, Colorado Wildfire Mitigation Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $-$239,247 $234,914 (4,333) TOTAL REVENUES -239,247 234,914 (4,333) EXPENDITURES Wildfire Mitigation - EVFPD -239,247 234,914 4,333 TOTAL EXPENDITURES -239,247 234,914 4,333 EXCESS OF EXPENDITURES OVER REVENUES ---- NET CHANGE IN FUND BALANCE $-$-$-$- FUND BALANCE, BEGINNING OF YEAR --- FUND BALANCE, END OF YEAR $-$-$- 104 Town of Estes Park, Colorado Trails Sales Tax Extension Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $-$332,288 $326,270 $(6,018) TOTAL REVENUES -332,288 326,270 (6,018) EXPENDITURES Capital outlay -319,000 223,744 95,256 TOTAL EXPENDITURES -319,000 223,744 95,256 EXCESS OF EXPENDITURES OVER REVENUES -13,288 102,525 89,237 NET CHANGE IN FUND BALANCE $-$13,288 $102,525 $89,237 FUND BALANCE, BEGINNING OF YEAR --- FUND BALANCE, END OF YEAR $-$13,288 $102,525 105 Town of Estes Park, Colorado Stormwater Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes $-$744,326 $730,844 $(13,482) TOTAL REVENUES -744,326 730,844 (13,482) EXPENDITURES Stormwater operations -88,769 1,492 87,277 TOTAL EXPENDITURES -88,769 1,492 87,277 EXCESS OF EXPENDITURES OVER REVENUES -655,557 729,352 73,795 NET CHANGE IN FUND BALANCE $-$655,557 $729,352 $73,795 FUND BALANCE, BEGINNING OF YEAR --- FUND BALANCE, END OF YEAR $-$-$729,352 106 Town of Estes Park, Colorado Power and Communications Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $ 23,855,167 $ 25,055,167 $ 25,640,924 $585,757 Intergovernmental 121,000 1,385,779 51,977 (1,333,802) Taxes -119,624 117,457 (2,167) Investment income 275,000 232,400 701,425 469,025 Miscellaneous 103,400 103,400 127,882 24,482 TOTAL REVENUES 24,354,567 26,896,370 26,639,664 (256,706) EXPENDITURES Current Source of supply 8,874,000 10,074,000 9,324,104 749,896 Distribution 5,661,311 5,612,675 3,468,115 2,144,560 Customer accounts 619,007 615,749 554,877 60,872 Administration and general 3,311,711 3,366,651 2,332,002 1,034,649 Broadband 1,770,747 1,790,773 1,482,980 307,793 Capital outlay 1,749,492 5,582,484 1,903,915 3,678,569 Debt Service Other 3,300 3,300 -3,300 Principal 1,311,302 1,311,302 1,295,000 16,302 Interest 855,370 855,370 854,368 1,002 TOTAL EXPENDITURES 24,156,240 29,212,304 21,215,359 7,996,945 OTHER FINANCING SOURCES AND (USES) Transfers out (1,384,157)(1,384,157)(1,384,152)5 TOTAL OTHER FINANCING SOURCES AND (USES)(1,384,157)(1,384,157)(1,384,152)5 CHANGE IN NET POSITION, BUDGETARY BASIS $(1,185,830)$(3,700,091)$4,040,153 $7,740,244 ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 1,903,915 Depreciation expense (2,541,227) Debt principal payments 1,295,000 CHANGE IN NET POSITION - GAAP BASIS 4,697,841 NET POSITION, BEGINNING OF YEAR 42,696,578 Restatement (258,192) NET POSITION, END OF YEAR $47,136,227 107 Town of Estes Park, Colorado Water Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services $ 6,549,618 $ 6,549,618 $ 6,672,095 $ 122,477 Other 25,000 25,000 52,275 27,275 Intergovernmental -12,110,000 3,854,738 (8,255,262) Investment Income 300,000 300,000 691,165 391,165 TOTAL REVENUES 6,874,618 18,984,618 11,270,273 (7,714,345) EXPENDITURES Current Source of supply 100,000 180,000 185,872 (5,872) Purification 1,467,361 1,399,070 1,117,301 281,769 Distribution 2,753,433 2,588,915 1,963,316 625,599 Customer accounts 380,261 376,139 286,797 89,342 Administration and general 1,538,287 1,550,147 1,215,909 334,238 Capital outlay 6,780,711 25,557,706 9,056,427 16,501,279 Debt service Principal 322,852 322,852 322,884 (32) Interest 114,458 211,403 274,624 (63,221) TOTAL EXPENDITURES 13,457,363 32,186,232 14,423,130 17,763,102 OTHER FINANCING SOURCES AND (USES) Transfers out (127,000)(127,000)(126,996)4 Financing proceeds 3,400,000 7,993,000 3,728,384 (4,264,616) Tap Fee 150,000 150,000 247,822 97,822 TOTAL OTHER FINANCING SOURCES AND (USES)3,423,000 8,016,000 3,849,210 (4,166,790) CHANGE IN NET POSITION, BUDGETARY BASIS $(3,159,745)$(5,185,614)$696,352 $5,881,966 ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay, including capitalized interest 9,056,427 Depreciation expense (1,217,558) Debt proceeds (3,728,384) Debt principal 322,884 CHANGE IN NET POSITION - GAAP BASIS 5,129,721 NET POSITION, BEGINNING OF YEAR 42,930,779 Restatement (136,627) NET POSITION, END OF YEAR $47,923,873 108 Town of Estes Park, Colorado Workforce Housing Linkage Impact Fee Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Impact Fees $ 715,000 $ 737,770 $ 724,870 $ (12,900) Investment Income -34,490 40,471 5,981 TOTAL REVENUES 715,000 772,260 765,341 (6,919) EXPENDITURES Current Operations 500,000 1,514,849 1,507,929 6,920 TOTAL EXPENDITURES 500,000 1,514,849 1,507,929 6,920 OTHER FINANCING SOURCES AND (USES) Transfers out --(742,589)(742,589) TOTAL OTHER FINANCING SOURCES AND (USES)--(742,589)(742,589) CHANGE IN NET POSITION, BUDGETARY BASIS $215,000 $(742,589)$(742,589)$- NET POSITION, BEGINNING OF YEAR 742,589 NET POSITION, END OF YEAR $- 109 Town of Estes Park, Colorado Combining Statement of Net Position Internal Service Funds December 31, 2024 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total ASSETS Current Assets: Cash and investments $ 554,764 2,394,755 $721,063 $ 2,153,335 $ 23,826 $ 5,847,742 Accounts receivable 14,257 5,707 6,523 328,369 -354,856 Inventories 36,700 ----36,700 Prepaid items --51,963 148,506 -200,469 Total Current Assets 605,722 2,400,462 779,548 2,630,210 23,826 6,439,768 Non-Current Assets: Capital assets, net of accumulated depreciation 472,372 1,220,802 200,479 --1,893,654 TOTAL ASSETS 1,078,094 3,621,264 980,028 2,630,210 23,826 8,333,421 LIABILITIES Current Liabilities: Accounts payable 23,123 311,234 115,595 --449,952 Accrued liabilities 15,129 -15,788 -927 31,844 Claims payable ---543,655 -543,655 Compensated absences payable 36,683 -46,979 -944 84,606 Total Current Liabilities 74,935 311,234 178,362 543,655 1,871 1,110,057 Non-Current Liabilities: Compensated absences payable 26,443 -24,752 -348 51,543 OPEB Liability 2,264 -2,358 --4,622 Total Non-Current Liabilities 28,707 -27,110 -348 56,165 TOTAL LIABILITIES 103,642 311,234 205,472 543,655 2,219 1,166,223 NET POSITION Net investment in capital assets 472,372 1,220,802 200,479 --1,893,654 Unrestricted 502,080 2,089,227 574,076 2,086,555 21,607 5,273,545 TOTAL NET POSITION $974,452 $3,310,029 $774,556 $2,086,555 $21,607 $7,167,199 110 Town of Estes Park, Colorado Combining Statement of Revenues, Expenditures and Changes in Fund Net Position Internal Service Funds For the Year Ended December 31, 2024 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total OPERATING REVENUES Charges for services $ 725,672 $ 637,763 $ 959,367 $ 3,914,726 $ 530,518 $ 6,768,046 Miscellaneous 2,274 -1,500 --3,774 TOTAL OPERATING REVENUES 727,946 637,763 960,867 3,914,726 530,518 6,771,820 OPERATING EXPENSES Salaries and benefits 601,326 -706,378 -20,817 1,328,521 Supplies 23,627 -112,420 --136,047 Utilities 14,510 -24,331 --38,841 Training 22,095 -2,657 --24,752 Maintenance and repairs 41,589 -256,628 --298,218 Professional fees 17,229 -5,510 -19,814 42,554 Depreciation 10,316 298,019 65,759 --374,094 Medical benefits ---3,856,335 -3,856,335 Property and liability insurance 3,019 -12,784 -530,367 546,170 TOTAL OPERATING EXPENSES 733,712 298,019 1,186,467 3,856,335 570,999 6,645,533 OPERATING INCOME (LOSS)(5,766)339,744 (225,600)58,391 (40,481)126,287 NON-OPERATING REVENUES Investment income 28,861 89,048 35,641 108,714 -262,265 TOTAL NON-OPERATING REVENUES 28,861 89,048 35,641 108,714 -262,265 CHANGE IN NET POSITION 23,095 428,792 (189,959)167,104 (40,481)388,552 NET POSITION, BEGINNING OF YEAR, as previously presented 986,655 2,881,237 984,806 1,919,451 62,087 6,834,236 RESTATEMENT (35,298)-(20,291)--(55,589) NET POSITION, END OF YEAR $974,452 $3,310,029 $774,556 $2,086,555 $21,606 $7,167,199 111 Town of Estes Park, Colorado Combining Statement of Cash Flows Nonmajor Internal Service Funds For the Year Ended December 31, 2024 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 $ 722,254 $ 636,136 $ 956,188 $ -$ 530,518 $ 2,845,096 Cash received from other sources 2,274 -1,500 4,596,146 -4,599,920 Cash paid for goods and services (602,522)310,514 (342,922)(4,851,106)(553,207)(6,039,243) Cash paid to employees (154,488)-(706,378)-(15,572)(876,438) NET CASH FROM OPERATING ACTIVITIES (32,482)946,650 (91,612)(254,960)(38,261)529,335 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisitions of capital assets (6,292)(663,435)(48,679)--(718,406) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (6,292)(663,435)(48,679)--(718,406) CASH FLOWS FROM INVESTING ACTIVITIES Investment income (expense)28,861 89,048 35,641 108,714 -262,264 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES 28,861 89,048 35,641 108,714 -262,264 NET CHANGE IN CASH AND CASH EQUIVALENTS (9,913)372,263 (104,650)(146,246)(38,261)73,193 CASH AND CASH EQUIVALENTS Beginning of Year 564,677 2,022,492 825,713 2,299,581 62,087 5,774,550 End of Year $554,764 $2,394,755 $721,063 $2,153,335 $23,826 $5,847,742 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income (loss)$ (5,766)$ 339,744 $ (225,600)$ 58,391 $ (40,481)$ 126,287 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 10,316 298,019 65,759 --374,094 (Increase) decrease in operating assets: Accounts receivable (4,417)(1,627)(3,179)(287,145)-(296,368) Inventories (1,767)----(1,767) Prepaid items --(51,963)--(51,963) Increase (decrease) in operating liabilities: Accounts payable (34,505)310,514 96,980 (26,206)346,783 Accrued liabilities 4,854 -5,674 -928 11,456 Compensated absences payable (1,197)-20,717 -1,292 20,812 NET CASH FROM OPERATING ACTIVITIES $(32,482)$946,650 $(91,612)$(254,960)$(38,261)$529,335 112 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $ 759,117 $ 759,117 $ 725,672 $(33,445) Intergovernmental -557,351 -(557,351) Miscellaneous --2,274 2,274 Investment income 1,000 1,000 28,861 27,861 TOTAL REVENUES 760,117 1,317,468 756,808 (560,660) EXPENDITURES Current: Salaries and benefits 621,552 635,461 601,326 34,135 Materials and supplies 24,850 24,850 23,627 1,223 Utilities 13,317 13,317 14,510 (1,193) Job performance expenses 29,120 29,120 22,095 7,025 Repairs and maintenance 37,205 47,205 41,589 5,616 Professional services 17,374 57,374 17,229 40,145 Property and liability insurance 3,019 3,019 3,019 - Capital outlay 6,500 645,466 6,292 639,174 TOTAL EXPENDITURES 752,937 1,455,812 729,688 726,124 CHANGE IN NET POSITION, BUDGETARY BASIS $7,180 $(138,344)$27,120 $165,464 ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 6,292 Depreciation (10,316) CHANGE IN NET POSITION - GAAP BASIS 23,095 NET POSITION, BEGINNING OF YEAR, as restated 951,357 NET POSITION, END OF YEAR $974,452 113 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services $ 627,508 $ 627,508 $ 637,763 $10,255 Investment income -75,000 89,048 14,048 TOTAL REVENUES 627,508 702,508 726,811 24,303 EXPENDITURES Capital outlay 889,000 1,302,131 663,433 638,698 TOTAL EXPENDITURES 889,000 1,302,131 663,433 638,698 CHANGE IN NET POSITION, BUDGETARY BASIS (261,492)(599,623)$63,378 $663,001 ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Depreciation (298,019) Capital outlay 663,433 CHANGE IN NET POSITION - GAAP BASIS 428,792 NET POSITION, BEGINNING OF YEAR 2,881,237 NET POSITION, END OF YEAR $3,310,029 114 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $ 958,608 $ 958,608 $ 959,367 $759 Investment income 15,000 15,000 35,641 20,641 Miscellaneous --1,500 1,500 TOTAL REVENUES 973,608 973,608 996,508 22,900 EXPENDITURES Current: Salaries and benefits 647,217 690,601 706,378 (15,777) Insurance Premiums 6,776 6,776 12,784 (6,008) Professional Services/Fees 17,000 17,000 5,510 11,490 Repair and Maintenance 180,350 193,021 256,628 (63,607) Materials and Supplies 120,550 120,550 112,420 8,130 Job Performance Expenses 7,550 7,550 2,657 4,893 Utilities 20,000 20,000 24,331 (4,331) Capital outlay 135,000 167,128 48,679 118,449 TOTAL EXPENDITURES 1,134,443 1,222,626 1,169,387 53,239 CHANGE IN NET POSITION, BUDGETARY BASIS $(160,835)$(249,018)$(172,879)$76,139 ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 48,679 Depreciation expense (65,759) CHANGE IN NET POSITION - GAAP BASIS (189,959) NET POSITION, BEGINNING OF YEAR, as restated 964,515 NET POSITION, END OF YEAR $774,556 115 Town of Estes Park, Colorado Medical Insurance Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $ 3,878,252 $ 4,246,175 $ 3,914,726 $ (331,449) Investment income 100,000 100,000 108,714 8,714 TOTAL REVENUES 3,978,252 4,346,175 4,023,439 (322,736) EXPENDITURES Current: Medical expense, net of claims 4,010,000 4,016,640 3,856,335 160,305 TOTAL EXPENDITURES 4,010,000 4,016,640 3,856,335 160,305 CHANGE IN NET POSITION, BUDGETARY BASIS $(31,748)$329,535 $167,104 $(162,431) NET POSITION, BEGINNING OF YEAR 1,919,451 NET POSITION, END OF YEAR $2,086,555 116 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, 2024 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services $530,518 $530,518 $530,518 $- TOTAL REVENUES 530,518 530,518 530,518 - EXPENDITURES Current: Salaries and benefits -33,056 20,817 12,239 Professional fees 30,000 15,000 19,814 (4,814) Property and liability insurance 520,108 535,768 530,367 5,401 TOTAL EXPENDITURES 550,108 583,824 570,999 12,825 CHANGE IN NET POSITION, BUDGETARY BASIS $(19,590)$(53,306)$(40,481)$12,825 NET POSITION, BEGINNING OF YEAR 62,087 NET POSITION, END OF YEAR $21,606 117 Form Approved The public report burden fur this information collection is estimated to average 380 hours annually. 353,061 PREVIOUS EDITIONS OBSOLETE 0MB No.2 125-0032 City or County: Town of Estes Park,Larimer County LOCAL HIGHWAY FINANCE REPORT YEAR ENDING: Decetnber 2024 This Information From The Records Of:Prepared By:Duane Hudson,Finance Director Town of Estes Park Phone: (970)577-3560 I.DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A.Local B.Local C.Receipts from D.Receipts from ITEM Motor-Fuel Motor-Vehicle State Highway-Federal Highway Taxes Taxes User Taxes Administration 1.Total receipts available 2.Minus amount used for collection expenses 3.Minus amount used for nonhighway purposes 4.Minus amount used for mass transit 5.Remainder used for highway purposes II.RECEIPTS FOR ROAD AND STREET PURPOSES III.DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A.Receipts from local sources:A.Local highway disbursements: 1.Local highway-user taxes I.Capital outlay (from page 2) a.Motor Fuel (from Item lAS.)2.Maintenance: b.Motor Vehicle (from Item l.b.5.)3.Road and street services: c.Total (a.+b.)a.Traffic control operations 26,345 2.General fund appropriations 3,833,781 b.Snow and ice removal 158,007 3.Other local imposts (from page 2)2,363,363 c.Other 97,868 4.Miscellaneous local receipts (from page 2)255,129 d.Total (a.through c.)282,220 5.Transfers from toll facilities 0 4.General administration &miscellaneous 969,188 6.Proceeds of sale of bonds and notes:5.Highway law enforcement and safety 1,921,662 a.Bonds -Original Issues 6.Total (I through 5)6.805.334 b.Bonds -Refunding Issues B.Debt service on local obligations: c.Notes I.Bonds: d.Total (a.+b.+c.)0 a.Interest 7.Total (1 through 6)6,452,273 b.Redemption B.Private Contributions 0 c.Total (a.+b.)0 C.Receipts from State government 2.Notes: (from page 2)a.Interest D.Receipts from Federal Government b.Redemption (from page 2)0 c.Total (a.+b.)0 E.Total receipts (A.7 +B +C +D)6,805,334 3.Total (I.e +2.c)0 C.Payments to State for highways D.Payments to toll facilities lE.Total disbursements (A.6 +B.3 +C +D)6,805,334 IV.LOCAL HIGHVAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A.Bonds (Total)I 0 I._Bonds_(Refunding_Portion) B.Notes (Total)I U V.LOCAL ROAD AND STREET FUND BALANCE A.Beginning Balance B.Total Receipts C.Total Disbursements]D.Ending Balance E.Reconciliation 5,431,370 6,805,334 6,805,334 6,548,544 (1,117,174) FORM FHWA-536 (Rev.06/2000) Notes and Comments: The S(1,l 17,174)reconciliation amount is for 2024 transactions n other funds than the Street Improvement Fund but are still subject to reporting on Form FHWA-536. (Next Page) 536-2024 HLJTF Report &Worksheet 118 FORM FHWA-536 0 325,471 PREVIOUS EDITIONS OBSOLETE t-any Forward tt)page I)Can Forward to page I) STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING (mm/yy): December 2024 II.RECEIPTS FOR ROAD AND STREET PURPOSES -DETAIL ITEM AMOUNT ITEM AMOUNT A.3.Other local imposts:4.4. Miscellaneous local receipts: a.Property Taxes and Assessments a.Interest on investments 250,855 b.Other local imposts:b.Traffic Fines &Penalities 0 I.Sales Taxes 2,291,737 c.Parking Garage Fees 0 2.Infrastructure &Impact Fees 0 d.Parking Meter Fees 0 3.Liens 0 e.Sale of Surplus Property 0 4.Licenses 0 f Charges for Services 2,450 5.Specific Ownership &/or Other 71,626 g.Other Misc.Receipts 0 6.Total (1.through 5.)2.363,363 h.Other 1,824 c.Total (a.+b.)2,363,363 i.Total (a.through h.)255,129 ITEM AMOUNT ITEM I AMOUNT C.Receipts from State Government D.Receipts from Federal Government I.Highway-user taxes I.FHWA (from Item I.D.5.) 2.State general funds 2.Other Federal agencies: 3.Other State funds:a.Forest Service 0 a.State bond proceeds b.FEMA 0 b.Project Match c.HUD 0 c.Motor Vehicle Registrations 27,590 d.Federal Transit Admin 0 d,Other (Operating Grant)0 e.U.S.Corps of Engineers 0 e.Other (Specify)0 f.Other Federal 0 f.Total (a.through e.)27,590 g.Total (a.through f.)0 4.Total(l.±2.±3.f)353,061 3.Total(I.*2.g) III.DISBURSEMENTS FOR ROAD AND STREET PURPOSES -DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a)(b)(c) A.1.Capital outlay: — a.Right-Of-Way Costs 0 0 h.Engineering Costs 1,128,368 1,128,368 c.Construction: (I).New Facilities 0 0 (2).Capacity Improvements 1,506,459 1,506,459 (3).System Preservation z 0 (4).System Enhancement &Operation 0 0 (5).Total Construction (I)+(2)+(3)+(4)0 1,506,459 1,506,459 d.Total Capital Outlay (Lines l.a.+lb.+l.c.5)0 2,634,827 2,634,827 any forward to page I) Notes and Comments: Cany forward to page I) 2 119 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.1‐4 120‐124 Revenue Capacity These schedules contain information to help the reader assess the  Town's largest revenue source, sales and use taxes.5‐7 125‐127 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.8‐11 128‐131 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.12‐13 132‐133 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.14‐16 134‐137 Statistical Section This section of the Town of Estes Park Comprehensive Annual Financial Report presents detailed  data as a context for understanding the information in the financial statements, note disclosures,  and required supplementary information. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental Activities Net Investment in capital assets 42,539,162$ 49,411,763$ 57,733,149$ 59,401,578$ 62,894,857$ 61,698,464$ 61,939,706$ 63,172,558$ 69,375,534$ 72,440,150$ Restricted 9,406,344 4,797,549 5,348,119 4,739,559 3,581,754 1,878,535 6,398,672 8,694,410 8,218,834 11,649,013 Unrestricted 5,434,320 4,165,544 1,585,920 3,587,854 6,122,258 10,800,413 12,729,796 17,973,032 22,265,031 20,521,679 Total governmental activities net position 57,379,826$ 58,374,856$ 64,667,188$ 67,728,991$ 72,598,869$ 74,377,412$ 81,068,174$ 89,840,000$ 99,859,399$ 104,610,843$ Total business-type activities net position 43,575,816$ 44,555,791$ 46,959,292$ 50,625,696$ 57,786,218$ 61,818,853$ 65,895,135$ 73,693,969$ 87,853,149$ 96,625,331$ Total primary governmental net position 100,955,642$ 102,930,647$ 111,626,480$ 118,354,687$ 130,385,087$ 136,196,265$ 146,963,309$ 163,533,969$ 187,712,547$ 201,236,174$ (accrual basis of accounting) As of December 31, Schedule 1 Town of Estes Park, Colorado Net Position 120 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenses Governmental Activities: General Government 5,280,912$ 6,229,691$ 5,847,655$ 5,101,078$ 4,944,301$ 6,130,371$ 5,209,373$ 4,684,953$ 10,492,265$ 12,382,755$ Public Safety 4,063,117 4,915,545 5,276,247 5,339,084 6,038,646 6,231,721 5,940,530 6,559,825 7,318,583 7,298,051 Public Works 2,736,985 2,549,174 4,284,402 2,884,866 2,109,022 3,858,918 5,993,789 6,559,015 7,547,831 7,101,093 Culture and Recreation 5,342,804 6,471,134 6,495,360 6,969,523 5,985,682 4,385,164 5,769,152 5,179,185 6,184,813 5,691,626 Interest on Long-Term Debt 147,226 136,216 298,651 317,206 258,959 247,402 225,820 195,654 184,638 169,036 Total governmental activities expenses 17,571,044 20,301,760 22,202,315 20,611,757 19,336,610 20,853,576 23,138,664 23,178,632 31,728,130 32,642,561 Total business-type activities expenses 16,589,331 18,205,870 19,447,427 20,565,422 18,243,338 20,717,327 22,321,718 22,633,511 25,141,827 28,326,978 Total primary governmental expenses 34,160,375$ 38,507,630$ 41,649,742$ 41,177,179$ 37,579,948$ 41,570,903$ 45,460,382$ 45,812,143$ 56,869,957$ 60,969,539$ Program Revenues Operating grants and contributions 1,500,181 1,041,897 1,776,442 38,090 18,999 103,277 213,710 483,861 209,498 686,610 Capital grants and contributions 5,275,791 1,616,090 7,426,948 5,213,494 1,467,471 3,070,901 2,600,273 1,493,815 4,943,284 1,713,146 Total governmental activities program revenues 8,365,682 4,463,313 11,266,657 7,288,437 3,035,521 3,919,151 5,224,569 4,874,086 8,026,793 5,011,674 Operating grants and contributions - - - - - 97,309 8,374 - - - Capital grants and contributions 2,049,792 789,735 1,448,452 983,621 1,147,464 24,809 - 154,132 5,656,675 3,906,715 Total business-type activities program revenues 19,511,667 19,156,040 21,700,317 22,906,319 24,345,943 25,752,176 27,608,033 31,076,356 38,878,572 37,192,426 Total primary government program revenues 27,877,349$ 23,619,353$ 32,966,974$ 30,194,756$ 27,381,464$ 29,671,327$ 32,832,602$ 35,950,442$ 46,905,365$ 42,204,100$ Net (Expense)/Revenue For Years Ended December 31, Schedule 2 Town of Estes Park, Colorado Changes in Net Position (accrual basis of accounting) 121 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Taxes Sales taxes 12,227,589$ 13,027,892$ 13,859,472$ 15,076,059$ 16,357,777$ 14,390,465$ 19,909,713$ 22,636,312$ 22,855,635$ 22,025,533$ Property taxes 343,135 361,750 21,676 388,128 415,220 436,515 406,217 461,255 455,266 489,746 Property taxes - - - - - - - - 5,309,126 5,650,243 Franchise taxes 470,612 488,325 512,132 542,058 564,658 560,865 588,222 639,000 651,095 669,283 Use taxes 280,612 304,540 335,175 331,579 361,623 317,686 409,078 365,369 427,507 376,387 Other taxes & contributions 458,250 528,506 442,651 513,425 831,379 787,956 1,074,818 53,457 57,909 67,663 Investment income (loss)41,358 106,420 221,620 199,804 359,280 170,372 (18,724) 44,217 1,151,361 1,166,121 Miscellaneous 424,843 1,279,985 432,218 575,169 345,109 655,121 733,146 964,369 1,316,029 1,107,194 Gain (Loss) on sale of capital assets - - - 55,776 13,950 (464,667) - - - - Extraordinary item: Environmental Remediation - - - - - Special item: Elim. Of net pension obligation - - - - - Transfers In (Out)1,555,141 736,059 1,403,046 (815,338) 1,921,970 1,858,565 1,802,028 1,612,752 1,496,808 1,511,148 Total governmental activities 15,801,540$ 16,833,477$ 17,227,990$ 16,866,660$ 21,170,966$ 18,712,878$ 24,904,498$ 26,776,731$ 33,720,736$ 33,063,320$ Business-type activities: Sales taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ 117,457$ Investment income 53,616$ 113,292$ 147,234$ 307,128$ 537,901$ 447,994$ (6,839)$ 200,153$ 1,507,437$ 1,433,060$ Miscellaneous 367,588 457,589 1,197,549 816,467 2,457,193 408,357 598,834 384,600 411,805 275,880 Gain (Loss) on sale of capital assets - - 208,874 93,769 (15,207) - - - - - Transfers In (Out)(1,555,141) (736,059) (1,403,046) 815,338 (1,921,970) (1,858,565) (1,802,028) (1,612,752) (1,496,808) (1,511,148) Total business-type activities (1,133,937) (165,178) 150,611 2,032,702 1,057,917 (1,002,214) (1,210,033) (1,027,999) 422,434 315,250 Total primary government 14,667,603$ 16,668,299$ 17,378,601$ 18,899,362$ 22,228,883$ 17,710,664$ 23,694,465$ 25,748,732$ 34,143,170$ 33,378,570$ Changes in Net Position Governmental activities 6,596,178$ 995,030$ 6,292,332$ 3,543,340$ 4,869,877$ 1,778,453$ 6,990,403$ 8,472,185$ 10,019,399$ 5,432,434$ Business-type activities 1,788,399 784,992 2,403,501 4,373,599 7,160,522 4,032,635 4,076,282 7,414,846 14,159,179 9,180,697 Total primary government 8,384,577$ 1,780,022$ 8,695,833$ 7,916,939$ 12,030,399$ 5,811,088$ 11,066,685$ 15,887,031$ 24,178,578$ 14,613,131$ Changes in Net Position (accrual basis of accounting) For Years Ended December 31, Schedule 2 (continued) Town of Estes Park, Colorado 122 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Fund Nonspendable 41,672$ 48,693$ 105,093$ 103,694$ 47,654$ 26,368$ 11,537$ 15,195$ 15,909$ 15,390$ Restricted 545,557 576,778 599,398 707,795 628,494 716,368 826,966 790,222 786,375 961,844 Assigned 678,791 373,866 945,296 300,087 755,923 2,091,374 2,649,628 4,132,686 9,111,618 8,624,063 Unassigned 2,932,790 4,422,749 529,245 7,541,385 9,802,762 9,092,668 12,678,756 11,207,757 5,550,676 4,331,677 Total general fund 4,198,810$ 5,422,086$ 2,179,032$ 8,652,961$ 11,234,833$ 11,926,778$ 16,166,887$ 16,145,860$ 15,464,578$ 13,932,974$ All other Governmental Funds Nonspendable - - 199,966 - 199,966 210,546 - - - 1,794 Restricted 8,860,787 4,220,771 4,654,222 4,031,764 2,953,260 1,162,166 2,998,920 7,904,188 7,632,425 10,734,694 Assigned 2,516,777 1,206,842 430,752 2,201,452 - 1,763,200 2,872,427 3,709,827 4,065,529 5,522,072 Unassigned - (247,404) (371,805) - (199,966) - - - - - Total all other governmental funds 11,377,564$ 5,180,209$ 4,913,135$ 6,233,216$ 2,953,260$ 3,135,912$ 5,871,347$ 11,614,015$ 11,697,954$ 16,258,560$ Total general fund + all other govt funds 15,576,374$ 10,602,295$ 7,092,167$ 14,886,177$ 14,188,093$ 15,062,690$ 22,038,234$ 27,759,875$ 27,162,532$ 30,191,534$ 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) 123 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues Taxes 13,321,948$ 14,182,507$ 14,728,455$ 16,851,249$ 18,530,657$ 16,493,487$ 22,388,048$ 24,155,393$ 29,756,538$ 29,278,853$ Licenses, fees and permits 581,401 730,684 962,487 912,204 809,296 630,350 787,817 1,014,392 874,697 786,167 Intergovernmental 6,665,193 3,167,621 6,798,487 8,899,628 1,175,891 2,566,116 3,401,599 1,922,931 1,612,780 3,204,247 Charges for services 665,719 702,261 685,200 741,016 574,802 310,959 1,329,280 1,502,505 1,668,799 1,473,113 Fines and forfeitures 57,676 45,045 38,831 76,366 61,890 59,925 74,933 107,702 77,387 77,021 Rental Income 284,914 327,336 376,749 307,267 103,063 293,228 218,558 271,811 253,128 275,617 Contributions - - - - - 41,510 60,809 54,745 60,583 137,280 Investment Income (Loss)31,571 86,049 153,494 153,046 308,544 170,372 (18,724) 44,217 1,151,361 1,166,121 Miscellaneous 307,110 544,691 470,923 547,970 338,462 188,778 199,649 883,174 721,292 813,767 Total revenues 21,915,532 19,786,194 24,214,626 28,488,746 21,902,605 20,754,725 28,441,969 29,956,870 36,176,565 37,212,185 Expenditures Total expenditures 18,207,738 26,146,332 34,046,120 22,570,660 24,799,504 21,738,693 23,268,453 25,730,362 38,270,715 35,694,334 Excess of revenues over (under) expenditures 3,707,794 (6,360,138) (9,831,494) 5,918,086 (2,896,899) (983,968) 5,173,516 4,226,508 (2,094,150) 1,517,851 Other Financing Sources (Uses) Bond Proceeds/premiums/Escrow activity - -4,552,617 - - - - - - - Total other financing sources (uses)1,555,141 1,386,059 6,321,366 1,875,924 2,198,815 1,858,565 1,802,028 1,495,133 1,496,808 1,511,148 (modified accrual basis of accounting) For Years Ended December 31, Schedule 4 Town of Estes Park, Colorado Changes in Fund Balances, Governmental Funds 124 General Personal/ Fiscal Amusement/Merchandise Lumber &Professional Year Recreation Automotive Food (Retail)Lodging Building Services Utilities Total Sales Tax 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 2023 91,162 330,417 7,796,480 4,622,346 7,109,467 1,404,447 582,859 943,633 22,880,811 2024 91,974 284,415 7,950,327 4,441,117 6,702,605 1,217,952 594,675 898,870 22,181,934 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 the COVID-19 pandemic Schedule 5 Town of Estes Park, Colorado Sales Tax Revenue by Type of Industry For Years Ended December 31, 125 Total Total Direct Overlapping Fiscal Town of Sales Tax State of Larimer Sales Tax Year Estes Park Rate Colorado County Rate 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% 2023 5.00%5.00%2.90%0.80%8.70% 2024 5.00%5.00%2.90%0.80%8.70% GASB 34 implemented in 2003 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, 126 2015 2024 Top three categories (alphabetical) Food 4,407,514$ 7,950,327$ Lodging 3,695,728 6,702,605 Retail 2,302,864 4,441,117 Total:10,406,106 19,094,049 Aggregate all other categories 1,821,483 3,087,886 Total sales and use tax 12,227,589$ 22,181,934$ Top three categories as a percentage of total sales tax 85.10%86.08% Schedule 7 Town of Estes Park, Colorado Principal Sales Tax Categories Current and nine years ago For Years Ended December 31, 127 Power and Certificates Lease Lease Light and Power Power and Communications Total Percentage Fiscal of Purchase Purchase Radio Revenue Communications Revenue Bond Radio Water Construction 2020 USDA Water Primary of Personal Per Year 1 2 Schedule 8 Town of Estes Park, Colorado Ratio of Outstanding Debt, by Type Business-Type Activities As of December 31, Governmental Activities 128 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General bonded debt outstanding -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Certificates of Participation 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 1,950,000 1,480,000 Total 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 1,950,000 1,480,000 1 48,643,383$ 48,919,777$ 54,813,869$ 55,572,712$ 66,132,054$ 66,642,636$ 72,235,707$ 72,851,331$ 95,288,081$ 95,821,281$ 1 2 by Larimer County. For 2024, the computation is: $3,194,042,690 x 3% = $95,281,281 Schedule 9 Town of Estes Park, Colorado Ratio of General Bonded Debt Outstanding and Legal Debt Margin As of December 31, 129 Percentage Estimated Applicable Share of Debt To Overlapping Jurisdiction Outstanding Government Debt Direct: Town of Estes Park 4,108,801$ 100.00%4,108,801$ Overlapping: Northern Colorado Water Conservancy District 2,408,817 1.06%25,486 Park Hospital District 10,655,048 57.25%6,099,606 Park R-3 School District 10,365,000 52.00%5,389,800 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, 2024 130 Less:Net Fiscal Water Operating Available Year 2023 25,814,957 17,049,203 8,765,754 1,255,000 1,123,110 3.69 2024 26,470,231 17,162,077 9,308,154 1,285,000 1,081,992 3.93 For Years Ended December 31, Schedule 11 Town of Estes Park, Colorado Pledged-Revenue Coverage Water Revenue Bonds Power & Communications Revenue Bonds 131 Fort Collins/ Total Median Per Capita Loveland, CO Fiscal Personal Family Personal Median School Unemployment Year Schedule 12 Town of Estes Park, Colorado Demographic and Economic Statistics As of December 31, 132 # of # of full-time full-time equivalent 2015 employees 2024 employees 1 Estes Park Medical Center 254 Estes Park Medical Center 234 2 Rocky Mountain National Park 170 Rocky Mountain National Park 204 3 Park School District R-3 143 Town of Estes Park 197 4 YMCA of the Rockies 130 YMCA of the Rockies 175 5 Town of Estes Park 131 Park School District R-3 163 6 Harmony Foundation 108 Stanley Hotel 131 7 Estes Valley Recreation District 45 Safeway 101 8 Rocky Mountain Park Inn 30 Harmony Foundation 98 9 Safeway 20 Estes Valley Recreation District 66 10 Holiday Inn 44 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, 133 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function/Program Judicial 1 1 1 1 0.5 0.5 0.5 0.5 0.5 0.5 Town Attorney1 2.00 2.00 2.00 2.00 2.00 2.00 Town Administration2 Town Administrator 5.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 Town Clerk 4.00 4.00 4.00 4.50 4.50 4.50 3.50 3.50 3.50 3.50 Human Resources3 1.00 2.00 2.00 2.00 Finance 9.00 10.00 10.00 9.00 8.75 8.75 9.13 9.00 11.00 11.00 Community Development 9.00 12.00 12.00 10.00 11.00 10.00 5.00 5.00 5.00 5.00 Workforce Housing/Childcare4 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 Police 33.00 34.00 36.00 37.00 38.71 38.71 38.13 40.71 42.71 42.71 Public Works 21.00 22.17 22.53 23.94 26.42 26.42 21.66 28.50 27.83 27.83 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 5.35 6.32 6.64 6.64 5.81 5.50 4.30 5.50 5.50 5.50 Senior Services 2.40 2.40 2.55 0.11 0.00 0.00 0.00 0.00 0.00 0.00 Special Events 8.66 12.00 12.00 11.50 13.15 14.12 13.03 13.03 11.46 11.46 Transportation 1.00 1.00 1.00 1.25 0.00 0.00 0.00 0.00 0.00 0.00 Museum 3.00 3.00 3.00 3.00 3.21 3.00 3.00 3.00 3.25 3.25 Light & Power 21.68 25.00 25.33 26.00 26.00 31.00 30.00 38.00 38.00 38.00 Water 12.00 13.75 15.00 17.31 15.12 18.12 20.00 21.08 20.00 20.00 Information Systems (IT)4.00 4.00 4.00 4.00 5.00 5.00 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 5.00 5.00 Facilities5 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 EPURA4 Fire3 Local Marketing District5 143.09 158.64 163.05 162.25 167.17 174.62 163.25 183.82 187.75 189.75 9.41%10.87%2.78%-0.49%2.53%7.62%0.62%9.96%7.52%16.23% 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 4Workforce Housing and Childcare was added in 2024 5Facilities Department was added in 2024. 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, 134 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police PD Incidents 14,591 13,446 16,736 14,048 16,691 12,716 14,774 13,272 13,002 13,160 PD Report Numbers 1,903 1,886 1,743 1,748 1,653 1,405 1,534 1,489 1,092 809 Total Arrests 297 174 155 195 205 113 102 111 115 169 Number of alloted PD Employees 32 32 32 33 37 37 37 32 41 41 Number of alotted Sworn Employees 20 20 20 21 22 22 22 23 24 23 Number of alotted Civilian Employees 12 12 12 12 15 15 15 9 17 18 Total Phone Calls 47,407 48,215 50,309 50,833 50,324 48,135 49,353 45,561 40,708 38,413 911 Calls 5,250 5,071 5,088 5,180 5,428 5,466 6,453 5,145 5,274 4,788 Total Incidents Police/Fire/Ambulance 17,154 20,295 19,587 16,435 5,428 14,768 16,956 15,476 15,204 15,429 *data lost during phone conversion Fire 32 43 43 45 45 39 35 40 43 48 618 685 742 621 615 570 570 673 654 826 ISO PPC 4 ISO PPC 4 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 Utilities-Electric 10,623 10,674 10,418 10,813 10,875 10,875 11,067 11,142 11,174 11,174 135 128 133 140 124 122 113 109 95 89 100 100 100 100 100 100 100 100 100 100 342,382 346,496 341,479 344,698 363,252 345,995 363,368 368,133 370,511 360,289 124,969,364 126,470,866 124,639,921 125,814,757 132,586,967 126,288,254 132,629,252 134,368,663 135,236,679 131,505,420 300 300 300 300 300 300 300 300 300 300 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Utilities-Water 5,197 5,228 5,027 5,368 5,536 5,536 5,600 5,600 5,696 5,746 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 1,098,997 1,172,322 1,128,180 1,192,523 1,127,274 1,116,770 1,143,920 1,189,865 1,158,339 1,290,483 401,133,914 427,897,375 411,785,866 435,270,803 411,455,154 407,621,094 417,530,905 434,300,786 422,793,613 471,026,227 Schedule 15 Town of Estes Park, Colorado Operating Indicators by Function/Program As of December 31, 135 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 131 133 136 141 138 153 152 176 175 176.6 Part-time employees 7 12 13 13 9 8 9 1.5 2.5 2.9 Seasonal employees 49 36 43 37 35 28 9 13 10.25 10.25 Building Permits 716 559 814 829 781 577 541 800 639 511 Culture and Recreation Museum 1 1 1 1 1 1 1 1 1 1 Senior Center 1 1 1 0 0 0 0 0 0 0 Event Center 1 1 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 **124 146 137 132 115 107 103 161 163 159 Financial Institutions 5 5 5 4 4 4 4 4 5 5 Newspapers 2 2 2 2 2 2 2 2 2 2 Theaters 2 2 2 2 2 2 2 2 2 1 Bus/Taxi Companies 2 2 2 2 2 2 2 2 2 2 Radio Stations 1 1 0 0 0 0 0 0 0 0 Hospitals 1 1 1 1 1 1 1 1 1 1 Churches 18 21 19 19 19 19 19 19 19 17 State highways (Highways 7, 34 and 36)3 3 3 3 3 3 3 3 3 3 Other Miscellaneous Data No. of Registered Voters 4040 4040 4813 4810 4408 4930 4930 4329 4774 4303 Facilities and services not included in the reporting entity: Estes Park High School (9-12)331 325 334 333 351 371 375 326 328 300 Estes Park Middle School (6-8)259 274 281 274 267 225 227 228 199 173 Estes Park Elementary School (K-5)553 518 488 475 477 394 424 507 488 483 Estes Park Options & Home Schooled 24 36 53 47 56 27 32 0 0 0 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 136 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function/Program Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 15 15 15 15 16 16 16 16 16 18 Fire Protection Stations 2 2 2 2 2 2 2 2 2 2 Fire Rating ISO PPC 4 ISO PPC 4 ISO PPC 3 ISO PPC 3 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 684 714 717 740 747 752 757 768 806 806 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 1250 1250 Electric Substations 2 2 2 2 2 2 2 2 2 2 Source: Town of Estes Park departmental data, Community Profile 137 Town of Estes Park, Colorado Compliance Section INDEPENDENT AUDITORS’ 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, the aggregate discretely presented component units, 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, 2024, and the related notes to the financial statements, which collectively comprise the Town of Estes Park, Colorado’s basic financial statements, and have issued our report thereon dated September 29, 2025. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town’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 the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as item 2024-01 that we consider to be significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 138 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. Town of Estes Park’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Town of Estes Park, Colorado’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The Town of Estes Park, Colorado’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 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 September 29, 2025 139 INDEPENDENT AUDITORS’ 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 the Town of Estes Park, Colorado’s major federal programs for the year ended December 31, 2024. The Town of Estes Park, Colorado’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. In our opinion, the 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, 2024. 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 Auditors’ Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the 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 the 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 the Town of Estes Park, Colorado’s federal programs. Auditors’ 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 the 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. 140 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 the 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 the 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 the 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 the 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 auditors’ 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 September 29, 2025 141 Town of Estes Park, Colorado Supplemental Information Schedule of Findings and Questioned Costs for the Year Ended December 31, 2024 1.Summary of Auditors’ Results Financial Statements: T e of re ort issued on the financial statements: Unmodified Material weaknesses in financial reporting internal control noted: None identified Significant deficiency identified that are not considered to be material weaknesses in financial re ortin : Yes Material noncom liance noted: None Federal Awards: Material weaknesses in internal control over major programs: None identified Significant deficiency(s) identified that are not considered to be material weaknesses over major programs: None identified T e of re ort issued on com liance for ma or ro rams: Unmodified Audit findin s re uired to be re orted: None The following program was considered to be major: 10.760 Water and Waste Disposal Systems for Rural Communities 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. Financial Statement Audit Finding: 2024-01 – Financial Close and Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: During the course of the audit, several adjustments were identified to properly state balances at year-end including the reversal of a grant receivable, the capitalization of a prepaid expense, capital outlay between two departments recorded twice in error, and a restatement for an unrecorded subscription based technology agreement resulting from the implementation of GASB 96. 142 Town of Estes Park, Colorado Supplemental Information Schedule of Findings and Questioned Costs for the Year Ended December 31, 2024 Criteria or Specific Requirement: Financial records are to be kept in accordance with generally accepted accounting principles (GAAP) and government accounting standards to ensure timely, accurate, and useful information is available to management and those charged with governance. Effect: Adjustments to the financial statements were required and the audit adjustments were made by management. Cause: The Town has a review process in place for the year-end accrual process, including over payables, receivables, and preparing adjusting journal entries. The adjustments recorded were isolated to individual transactions related to different areas of the financial statements, impacting different departments, but were large enough to warrant acknowledgement. The Town experienced transition in its finance leadership and transition in its primary accounting system during the time frame the audit occurred, all of which are contributing factors. Repeat Finding: No Recommendation: The Town's review process remains effective; however, with stabilization of staff and full implementation of the new accounting system, additional safeguards and training can further strengthen accuracy. Enhanced system functionality, a secondary review of grants and capital assets over certain thresholds, and periodic training for departmental staff can further improve the precision of financial reporting. Views of Responsible Officials and Planned Correction Actions: Management acknowledges the audit’s identification of year-end adjustments but does not concur that these adjustments constitute a significant deficiency in internal control. With the exception of one entry, the adjustments were not material in nature. The Town maintains that its internal control framework is sound and appropriately designed to ensure compliance and financial accuracy. As noted, the adjustments were primarily attributable to staff transitions rather than to deficiencies in internal control. With the stabilization of accounting staff and transition to new accounting system, management will continue to enhance review procedures and provide targeted training to reinforce the importance of accurate financial data. The Town remains committed to maintaining strong internal controls and ensuring the reliability of its financial reporting. 3.Findings and questioned costs for Federal Awards None 4.Summary Schedule of Prior Audit Findings Finding: 2023-01 – Year-end Enterprise Fund Inventory Original Finding Summary: In the prior year, the Town did not ensure that year-end inventory quantities were properly adjusted to reflect physical counts conducted prior to year-end. Discrepancies were noted in 56% of items observed, and negative quantities were present in the inventory summary report. The condition was classified as a material weakness, and the Town was advised to implement stronger controls around year-end physical counts, documentation, and adjustments. 143 Town of Estes Park, Colorado Supplemental Information Schedule of Findings and Questioned Costs for the Year Ended December 31, 2024 Current Year Status – Resolved: For the current year, the Town implemented corrective action in response to the prior year finding. A complete physical inventory count was performed prior to year-end by Town staff, with appropriate documentation maintained, including count sheets and staff names. Discrepancies between the physical counts and system quantities were identified and adjusted prior to year-end close. Our audit procedures confirmed that the final inventory balances were supported by physical count documentation and that no material discrepancies were noted. As a result, this finding is considered fully resolved. 144 Federal Agency/ Pass-through Entity/ Program or Cluster Federal Assistance Pass-Through Entity Federal United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities 10.760 $ 3,846,253 Total Water and Waste Disposal Systems for Rural Communities 3,846,253 Total United States Department of Agriculture 3,846,253 Department of the Interior WaterSMART (Sustain and Manage America’s Resources for Tomorrow)15.507 8,485 Total WaterSMART (Sustain and Manage America’s Resources for Tomorrow)8,485 Total Department of the Interior 8,485 United States Department of Justice Bulletproof Vest Partnership Program 16.607 7,622 Total Bulletproof Vest Partnership Program 7,622 Total United States Department of Justice 7,622 Department of Transportation Highway Planning and Construction 20.205 State of Colorado: Department of Transportation 19-HA4-XC-00065 500,000 Formula Grants for Rural Areas and Tribal Transit Program 20.509 State of Colorado: Department of Transportation 24-HTR-ZL-00120 24-HTR-ZL-00254 100,000 Total Department of Transportation 600,000 Flood Mitigation Assistance 97.029 EMD-2020-FM-015 242,163 Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 14-D4145-EP (135,611) BRIC: Building Resilient Infrastructure and Communities 97.047 EMD-2023-PD-001 109,829 Total Department of Homeland Security 216,381 Total Expenditures of Federal Awards $ 4,678,741 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 For the Year Ended December 31, 2024 145 Notes to the Schedule 1. 2. 3. Town of Estes Park, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2024 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, 2024. 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. under the Uniform Guidance. 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. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the 146