C150321 Feasibility Study

• Contract/PO #: CT2015-055
• Contract/PO #: C150321
• Contractor Name: Georgetown, Town of
• Contract Type: Loan
• Water District: 7
• County: Clear Creek
• Loan Projects - Doc Type: Feasibility Study

Statement 25 Combining and Individual Fund Schedules Combining Balance Sheet – Nonmajor Governmental Funds 26 Combining Statement of Revenues, Expenditures and Changes In Fund Balances
– Nonmajor Governmental Funds 27 Conservation Trust Fund – Budgetary Comparison Schedule 28 Town Promotion Fund – Budgetary Comparison Schedule 29 Water Fund – Budgetary Comparison Schedule
30 Sewer Fund – Budgetary Comparison Schedule 31 Statement of Changes in Assets and Liabilities – Agency Fund 32 COMPLIANCE Independent Auditors’ Report on Compliance and on Internal
Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 33 Independent Auditors’ Report on Compliance with
Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance With OMB Circular A-133 34-35 Schedule of Findings and Questioned Costs 36 Schedule of
Expenditures of Federal Awards 37 Local Highway Finance Report 38 -39
FINANCIAL SECTION
600 17TH STREET SUITE 2800 SOUTH • DENVER, COLORADO 80202 •TEL [phone] •FAX [phone] Honorable Mayor and Members of the Board of Selectmen Town of Georgetown Georgetown, Colorado
INDEPENDENT AUDITORS’ REPORT We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the Town of Georgetown, Colorado, as of and for the year ended December 31, 2009, which collectively comprise the basic financial statements of the Town, as listed
in the table of contents. These financial statements are the responsibility of the Town of Georgetown, Colorado’s management. Our responsibility is to express opinions on these financial
statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present
fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information
of the Town of Georgetown, Colorado , as of December 31, 2009, and the respective changes in financial position and cash flows, where applicable, for the year then ended in conformity
with accounting principles generally accepted in the United States of America. The Town has not presented management’s discussion and analysis that the Governmental Accounting Standards
Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. The required supplementary information listed in the table of contents
is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information
and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Georgetown, Colorado’s basic
financial statements. The individual fund schedules and compliance listed in the table of contents are presented for purposes of additional analysis and are not a required part of the
basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented
in all material respects in relation to the basic financial statements taken as a whole. September 21, 2010
BASIC FINANCIAL STATEMENTS
BUSINESS GOVERNMENTAL TYPE ACTIVITIES ACTIVITIES TOTAL ASSETS Cash and Investments $ 188,115 $ 86,699 $ 274,814 Restricted Cash and Investments -71,247 71,247 Receivables Property Taxes
147,412 -147,412 Accounts 5,483 84,847 90,330 Due From Other Governments 59,945 530,028 589,973 Prepaid Expenses -6,292 6,292 Interfund Balances 168,522 (168,522) -Capital Assets, Not
Depreciated 961,830 2,087,122 3,048,952 Capital Assets, Depreciated Net of Accumulated Depreciation 3,073,870 2,456,425 5,530,295 TOTAL ASSETS 4,605,177 5,154,138 9,759,315 LIABILITIES
Accounts Payable 12,812 386,123 398,935 Retainage Payable -90,702 90,702 Accrued Salaries and Benefits 18,004 15,954 33,958 Accrued Interest -2,790 2,790 Deferred Revenues 147,412 -147,412
Noncurrent Liabilities Due within One Year 26,077 46,262 72,339 Due in More Than One Year -513,909 513,909 TOTAL LIABILITIES 204,305 1,055,740 1,260,045 NET ASSETS Invested in Capital
Assets, Net of Related Debt 4,009,623 3,983,376 7,992,999 Restricted for Capital Improvement -71,247 71,247 Restricted for Emergencies 48,000 -48,000 Unrestricted 343,249 43,775 387,024
TOTAL NET ASSETS $ 4,400,872 $ 4,098,398 $ 8,499,270 STATEMENT OF NET ASSETS As of December 31, 2009 TOWN OF GEORGETOWN, COLORADO The accompanying notes are an integral part of the financial
statements. 1
TOWN OF GEORGETOWN, COLORADO STATEMENT OF ACTIVITIES PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS
PRIMARY GOVERNMENT Governmental Activities General Government $ 278,925 $ 102,598 $ 1,150 $ -Public Safety 294,393 ---Public Works 328,568 --206,920 Parks and Recreation 61,740 -5,174
-Total Governmental Activities 963,626 102,598 6,324 206,920 Business-Type Activities Water and Sewer 704,855 804,718 -1,917,205 Interest on Long-Term Debt 30,030 ---Total Business-Type
Activities 734,885 804,718 -1,917,205 Total Primary Government $ 1,698,511 $ 907,316 $ 6,324 $ 2,124,125 GENERAL REVENUES Sales Taxes Property Taxes Specific Ownership Taxes Franchise
Taxes Severance Taxes Other Taxes Interest Other TOTAL GENERAL REVENUES CHANGE IN NET ASSETS NET ASSETS, Beginning Prior Period Adjustment NET ASSETS, Ending Year Ended December 31,
2009 The accompanying notes are an integral part of the financial statements. 2
NET (EXPENSE) REVENUE AND CHANGE IN NET ASSETS GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTALS $ (175,177) $ -$ (175,177) (294,393) -(294,393) (121,648) -(121,648) (56,566) -(56,566)
(647,784) -(647,784) -2,017,068 2,017,068 -(30,030) (30,030) -1,987,038 1,987,038 (647,784) 1,987,038 1,339,254 442,793 -442,793 142,765 -142,765 12,197 -12,197 44,766 -44,766 80,823
-80,823 10,438 -10,438 676 381 1,057 14,281 7,900 22,181 748,739 8,281 757,020 100,955 1,995,319 2,096,274 4,155,471 2,834,097 6,989,568 144,446 (731,018) (586,572) $ 4 ,400,872 $ 4,098,398
$ 8,499,270
OTHER GENERAL SALES TAX GOVERNMENTAL FUND FUND FUNDS TOTALS ASSETS Cash and Investments $ 33,124 $ 138,662 $ 16,329 $ 188,115 Property Taxes Receivable 147,412 --147,412 Accounts Receivable
5,483 --5,483 Due From Other Governments 42,574 17,371 -59,945 Due From Other Funds 177,805 --177,805 TOTAL ASSETS $ 406,398 $ 156,033 $ 16,329 $ 578,760 LIABILITIES AND FUND EQUITY
LIABILITIES Accounts Payable $ 12,343 $ 419 $ 50 $ 12,812 Accrued Salaries and Benefits 18,004 --18,004 Due to Other Funds 9,283 --9,283 Deferred Revenues 147,412 --147,412 TOTAL LIABILITIES
187,042 419 50 187,511 FUND EQUITY Fund Balance Reserved for Emergencies 48,000 --48,000 Unreserved, reported in General Fund 171,356 --171,356 Special Revenue Funds -155,614 16,279
171,893 TOTAL FUND EQUITY 219,356 155,614 16,279 391,249 TOTAL LIABILITIES AND FUND EQUITY $ 406,398 $ 156,033 $ 16,329 Amounts reported for governmental activities in the statement
of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 4,035,700 Long-term liabilities
are not due and payable in the current period and are not reported in the funds. (26,077) Net assets of governmental activities $ 4,400,872 TOWN OF GEORGETOWN, COLORADO BALANCE SHEET
GOVERNMENTAL FUNDS As of December 31, 2009 The accompanying notes are an integral part of the financial statements. 3
OTHER GENERAL SALES TAX GOVERNMENTAL FUND FUND FUNDS TOTALS REVENUES Taxes $ 527,086 $ 119,004 $ -$ 646,090 Licenses and Permits 59,633 --59,633 Intergovernmental 221,612 73,000 5,174
299,786 Charges for Services --21,703 21,703 Donations -1,150 1,150 Court 21,262 --21,262 Interest 367 299 10 676 Miscellaneous 14,281 --14,281 TOTAL REVENUES 844,241 192,303 28,037
1,064,581 EXPENDITURES Current General Government 173,079 26,576 34,588 234,243 Public Safety 273,287 --273,287 Public Works 168,786 --168,786 Parks and Recreation 36,592 --36,592 Capital
Outlay 26,577 105,086 -131,663 TOTAL EXPENDITURES 678,321 131,662 34,588 844,571 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 165,920 60,641 (6,551) 220,010 OTHER FINANCING SOURCES (USES)
Transfers Out (14,243) -(5,174) (19,417) Transfers In 5,174 -14,243 19,417 TOTAL OTHER FINANCING SOURCES (USES) (9,069) -9,069 -NET CHANGE IN FUND BALANCE 156,851 60,641 2,518 220,010
FUND BALANCE, Beginning 34,852 94,973 13,761 143,586 Prior Period Adjustment 27,653 --27,653 FUND BALANCE, Ending $ 219,356 $ 155,614 $ 16,279 $ 391,249 TOWN OF GEORGETOWN, COLORADO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS Year Ended December 31, 2009 The accompanying notes are an integral part of the financial statements.
4
Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Changes in Fund Balances -Total Governmental Funds $ 220,010 Governmental funds
report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which depreciation expense ($244,567), exceeded capital outlay $131,663, the current period. (112,904) Repayment of long-term debt principal is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This is the change in accrued compensated absences for the year. (6,151) Change
in Net Assets of Governmental Activities $ 100,955 Year Ended December 31, 2009 TOWN OF GEORGETOWN, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES The accompanying notes are an integral part of the financial statements. 5
WATER SEWER FUND FUND TOTALS ASSETS Current Assets Cash and Investments $ -$ 86,699 $ 86,699 Restricted Cash and Investments -71,247 71,247 Due from Other Funds -251,303 251,303 Accounts
Receivable 41,672 43,175 84,847 Due from Other Governments 210,813 319,215 530,028 Prepaid Expenses 3,146 3,146 6,292 Total Current Assets 255,631 774,785 1,030,416 Noncurrent Assets
Capital Assets, net of accumulated depreciation 1,791,600 2,751,947 4,543,547 TOTAL ASSETS 2,047,231 3,526,732 5,573,963 LIABILITIES Current Liabilities Accounts Payable 212,176 173,947
386,123 Retainage Payable 29,705 60,997 90,702 Due to Other Funds 419,825 -4 19,825 Accrued Expenses 7,788 8,166 15,954 Compensated Absences 3,735 3,735 7,470 Accrued Interest Payable
-2,790 2,790 Current Portion of Long Term Debt 18,490 20,302 38,792 Total Current Liabilities 691,719 269,937 961,656 Noncurrent Liabilities Notes Payable 350,031 163,878 513,909 Total
Noncurrent Liabilities 350,031 163,878 513,909 TOTAL LIABILITIES 1,041,750 433,815 1,475,565 NET ASSETS Invested in Capital Assets, Net of Related Debt 1,423,079 2,567,767 3,990,846
Restricted for Capital Improvement -71,247 71,247 Unreserved (417,598) 453,903 36,305 TOTAL NET ASSETS $ 1,005,481 $ 3,092,917 $ 4,098,398 As of December 31, 2009 TOWN OF GEORGETOWN,
COLORADO STATEMENT OF NET ASSETS PROPRIETARY FUND TYPE The accompanying notes are an integral part of the financial statements. 6
WATER SEWER FUND FUND TOTAL OPERATING REVENUES Charges for Services $ 402,750 $ 401,968 $ 804,718 Other Revenues 3,900 4,000 7,900 TOTAL OPERATING REVENUES 4 06,650 405,968 812,618 OPERATING
EXPENSES Salaries and Benefits 108,028 118,260 226,288 Professional Services 107,521 48,026 155,547 Repairs and Maintenance 38,609 12,722 51,331 Administrative and General 39,506 131,630
171,136 Miscellaneous 898 1,447 2,345 Depreciation 42,412 55,796 98,208 TOTAL OPERATING EXPENSES 336,974 367,881 704,855 OPERATING INCOME (LOSS) 69,676 38,087 107,763 NON-OPERATING REVENUES
(EXPENSES) Intergovernmental 685,837 1,220,101 1,905,938 Interest Income -381 381 Interest Expenses (19,854) (10,176) (30,030) TOTAL NON-OPERATING REVENUES (EXPENSES) 665,983 1,210,306
1,876,289 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 735,659 1,248,393 1,984,052 Capital Contributions 100 11,167 11,267 NET INCOME (LOSS) 7 35,759 1,259,560 1,995,319 NET ASSETS, Beginning
763,833 2,070,264 2,834,097 Prior Period Adjustment (494,111) (236,907) (731,018) NET ASSETS, Ending $ 1,005,481 $ 3,092,917 $ 4,098,398 TOWN OF GEORGETOWN, COLORADO STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUND TYPE Year Ended December 31, 2009 The accompanying notes are an integral part of the financial statements. 7
WATER SEWER FUND FUND TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers $ 402,152 $ 398,506 $ 800,658 Cash Paid to Suppliers (293,530) (224,144) (517,674) Cash
Paid to Employees (108,908) (103,626) (212,534) Net Cash Provided (Used) by Operating Activities (286) 70,736 70,450 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase
of Capital Assets (556,564) (1,073,722) (1,630,286) Grants 475,024 914,497 1,389,521 Note Payments (17,335) (19,336) (36,671) Interest Payments (19,854) (10,176) (30,030) Capital Contributions
100 11,167 11,267 Net Cash Used by Capital and Related Financing Activities (118,629) (177,570) (296,199) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received -381 381 Net Decrease
in Cash and Cash Equivalents (118,915) (106,453) (225,368) CASH AND CASH EQUIVALENTS, Beginning 118,915 264,399 383,314 CASH AND CASH EQUIVALENTS, Ending $ -$ 157,946 $ 157,946 RECONCILIATION
OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income $ 69,676 $ 38,087 $ 107,763 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating
Activities Depreciation and Amortization 42,412 55,796 98,208 Changes in Assets and Liabilities Accounts Receivable (4,498) (7,462) (11,960) Due From Other Funds 4,915 -4,915 Accounts
Payable (5,623) (83,719) (89,342) Retainage Payable 29,705 60,997 90,702 Due to Other Funds (136,173) -(136,173) Accrued Expenses (4,435) 3,302 (1,133) Accrued Compensated Absences 3,735
3,735 7,470 Total Adjustments (69,962) 32,649 (37,313) Net Cash Provided by Operating Activities $ (286) $ 70,736 $ 70,450 Schedule of Noncash Items Capital Assets Acquired with Accounts
Payable $ 215,572 $ 233,763 $ 449,335 TOWN OF GEORGETOWN, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE Year Ended December 31, 2009 Increase (Decrease) in Cash and Cash Equivalents
The accompanying notes are an integral part of the financial statements. 8
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 9 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Town of Georgetown, Colorado
(the “Town”) conform to generally accepted accounting principles as applicable to governments. 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 In accordance with governmental
accounting standards, the Town has considered the possibility of inclusion of additional entities in its basic financial statements. The definition of the reporting entity is based primarily
on financial accountability. The Town is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizations
if Town officials appoint a voting majority of the organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization
to provide specific financial benefits to, or to impose specific financial burdens on, the Town. The Town may also be financially accountable for governmental organizations that are
fiscally dependent upon it. Based on the application of these criteria, the Town does not include additional organizations in its reporting entity. Government-Wide and Fund Financial
Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the
Town. For the most part, the effect of interfund activity has been removed from these statements. 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. The statement of activities demonstrates the degree
to which the direct expenses of the given function or segments 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.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 10 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-Wide and Fund Financial Statements
(Continued) Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental 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 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 recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected
within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible
to accrual and have been recognized as revenues of the current fiscal period. All other revenue items 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. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide
and proprietary (enterprise) fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Town has
elected not to follow subsequent private-sector guidance.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 11 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting,
and Financial Statement Presentation (Continued) 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 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 fund: The General Fund is the Town’s primary operating fund. It accounts for all financial resources
of the Town, except those required to be accounted for in another fund. The Sales Tax Fund accounts revenues and expenditures allocated for capital projects. The Town also reports the
following major proprietary fund: The Water Fund accounts for the financial activities associated with the provision of water services. The Sewer Fund accounts for the financial activities
associated with the provision of water services. The Town also reports the following fund type: The Agency Fund accounts for grant funds for other entities. The Funds are held by the
Town in a purely custodial capacity. Cash and Investments Cash equivalents include investments with original maturities of three months or less. Investments are recorded at fair value.

TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 12 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets Capital assets, which include
property and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the
Town as assets with an initial, individual cost of more than $5,000 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 are recorded at estimated fair market value 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 assets’ lives are not capitalized. Property and equipment of the Town is depreciated using the straight line method over the following
estimated useful lives: Buildings and Improvements 10 -40 years Infrastructure 15 -50 years Machinery and Equipment 3 -10 years Compensated Absences Employees of the Town are allowed
to accumulate unused paid time off (“PTO”). Upon termination of employment from the Town, an employee will be compensated for a maximum of 1 ½ times the annual PTO accrual rate. These
compensated absences are recognized as current salary costs when earned in the proprietary fund types and when due in the governmental fund types. A liability has been recorded in the
government-wide financial statements for the accrued compensated absences. Long-Term Obligations In the government-wide financial statements, and proprietary fund type 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 type statement
of net assets. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types
recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received
on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 13 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net Assets/Fund Equity In the government-wide
financial statements, net assets are restricted when constraints placed on the net assets are externally imposed. In the fund financial statements, governmental funds report reservations
of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Property Taxes Property taxes are levied
on November 1 and attach as an enforceable lien on property on January 1. Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer’s
office collects property taxes and remits to the Town on a monthly basis. Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding
deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. NOTE 2: STEWARDSHIP,
COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting The Town follows these procedures in establishing the budgetary data reflected in the financial statements:  In October,
the Town staff submits to the Board of Selectmen 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 an ordinance. 
The Town Administration 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 Selectmen.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 14 NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)  Budgets are legally adopted for all funds
of the Town. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Budgetary comparison presented
for the Enterprise Fund is presented on a non-GAAP budgetary basis. Capital outlay and debt payments are budgeted as expenditures and depreciation is not budgeted.  Budgeted amounts
in the financial statements are as originally adopted or as amended by the Board of Selectmen. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations
at the fund level. NOTE 3: DEPOSITS AND INVESTMENTS A summary of deposits and investments as of December 31, 2009 follows: Cash Deposits $ 302,797 Investments 43,264 Total $ 346,061
The above amounts are classified in the statement of net assets as follows: Governmental Activities $ 188,115 Business-Type Activities 86,699 Business-Type Activities -Restricted 71,247
Total $ 346,061 Deposits Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it.
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations.