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

At December 31, 2009, State regulatory commissioners have indicated that all financial institutions holding deposits for the Town are eligible public depositories.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 15 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Deposits (Continued) Amounts on deposit in excess of federal
insurance levels must be collateralized by eligible collateral as determined by the PDPA. 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 the uninsured public deposits as a group. The market value of the collateral must be at least equal
to 102% of the uninsured deposits. The Town has no policy regarding custodial credit risk for deposits. At December 31, 2009, the Town had deposits with financial institutions with a
carrying amount of $302,797. The bank balances with the financial institutions were $408,628. Of these balances, $261,211 was covered by federal depository insurance and $147,417 was
covered by collateral held by authorized escrow agents in the financial institutions name (PDPA). Investments Interest Rate Risk The Town does not have a formal investment policy that
limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk Colorado statutes specify in which instruments
the units of local government may invest which includes:  Obligations of the United States and certain U.S. government agency securities  General obligation and revenue bonds of U.S.
local government entities  Commercial paper  Local government investment pools  Written repurchase agreements collateralized by certain authorized securities  Certain money market
funds  Guaranteed investment contracts The above investments are authorized for all funds and fund types used by Colorado municipalities.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 16 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) The Town had invested $43,264 in
the Colorado Government Liquid Asset Trust and the Colorado Surplus Asset Fund Trust (COLOTRUST and CSAFE); investment vehicles established for local government entities in Colorado
to pool surplus funds and are registered with the State Securities Commissioner. They operate similarly to a money market fund and each share is equal in value to $1.00. Investments
consist of U.S. Treasury and U.S. Agency securities and repurchase agreements collateralized by U.S. Treasury and U.S. Agency securities. A designated custodial bank provides safekeeping
and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned are held by the Federal Reserve Bank in the account maintained
for the custodial bank. The custodian's internal records identify the investments owned by the entities. Colotrust is rated AAA and CSAFE is rated AAAm by Standard and Poor’s. Restricted
Cash Cash in the amount of $71,247 is restricted in the Sewer Fund for wastewater capital improvement projects.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 17 NOTE 4: CAPITAL ASSETS Capital assets activity for the year ended December 31, 2009 is summarized below:
Balances Balances 12/31/08 Additions Deletions 12/31/09 Governmental Activities Capital Assets, not depreciated Land $ 856,744 $ -$ -$ 856,744 Construction in Process -105,086 -105,086
Total Capital Assets, not depreciated 856,744 105,086 -961,830 Capital Assets, depreciated Buildings and Improvements 1,424,470 --1,424,470 Land Improvements 267,343 -267,343 Infrastructure
4,798,581 --4,798,581 Machinery and Equipment 319,294 26,577 -345,871 Total Capital Assets, depreciated 6,809,688 26,577 -6,836,265 Less Accumulated Depreciation Buildings and Improvements
454,673 38,531 -493,204 Land Improvements 94,552 25,148 -119,700 Infrastructure 2,712,535 159,782 -2,872,317 Machinery and Equipment 256,068 21,106 -277,174 Total Accumulated Depreciation
3,517,828 244,567 -3,762,395 Total Capital Assets, depreciated, Net 3,291,860 (217,990) -3,073,870 Governmental Activities, Capital Assets, Net $ 4,148,604 $ (112,904) $ -$ 4,035,700
Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 38,531 Public Safety 21,106 Public Works 159,782 Parks and
Recreation 25,148 Total $ 244,567
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 18 NOTE 4: CAPITAL ASSETS (Continued) Balances Balances 12/31/08 Additions Deletions 12/31/09 Business-Type
Activities Capital Assets, not depreciated Land $ 7,500 $ -$ -$ 7,500 Construction in Progress -2,079,622 -2,079,622 Total Capital Assets, not depreciated 7,500 2,079,622 -2,087,122
Capital Assets, depreciated Buildings and Improvements 1,971,420 --1,971,420 Collection and Distribution 2,824,178 --2,824,178 Machinery and Equipment 123,691 --123,691 Total Capital
Assets, depreciated 4,919,289 --4,919,289 Less: Accumulated Depreciation Buildings and Improvements 1,184,181 37,704 -1,221,885 Collection and Distribution 1,070,748 55,849 -1,126,597
Machinery and Equipment 109,727 4,655 -114,382 Total Accumulated Depreciation 2,364,656 98,208 -2,462,864 Total Capital Assets, depreciated, Net 2,554,633 (98,208) -2,456,425 Business-Type
Activities, Capital Assets, Net $ 2,562,133 $ 1,981,414 $ -$ 4,543,547 NOTE 5: TRANSFERS During 2009, the General Fund transferred $14,243 to the Town Promotion Fund to cover operating
expenditures. The Conservation Trust Fund transferred $5,174 to the General Fund to cover the General Fund’s cost of maintaining the Town’s parks and recreation areas. NOTE 6: LONG-TERM
DEBT Governmental Activities Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2009. Balance Balance Due In 12/31/08
Additions Payments 12/31/09 One Year Accrued Compensated Absences $ 19,926 $ 6,151 $ -$ 26,077 $ 26,077
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 19 NOTE 6: LONG-TERM DEBT (Continued) Accrued Compensated Absences are being paid from resources generated
by the General Fund. Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2009. Balance Balance
Due In 12/31/08 Additions Payments 12/31/09 One Year 1999 CWSB Loan $ 142,531 $ -$ 4,996 $ 137,535 $ 5,534 2002 DOLA Loan 198,663 -10,132 188,531 10,639 2004 DOLA Loan 80,250 -4,011
76,239 4,212 2006 DOLA Loan 167,928 -17,532 150,396 18,407 Compensated Absences -7,470 -7,470 7,470 Total $ 1,399,170 $ 7,470 $ 36,671 $ 560,171 $ 46,262 1999 Colorado Water Conservancy
Board (CWSB) In July, 1999, the Town entered into a loan agreement with the Colorado Water Conservancy Board. Proceeds were used to acquire water rights. Principal and interest payments
in the amount of $12,714 are due annually on December 28, through 2027. Interest accrues at 5.25%. 2002 Colorado Department of Local Affairs (DOLA) In September 2002, the Town entered
into a loan agreement with the Colorado Department of Local Affairs. Proceeds of the loan were used to fund water improvement projects. Principal and interest payments in the amount
of $20,061 are due annually on September 1, through 2022. Interest accrues at 5.00%. 2004 Colorado Department of Local Affairs (DOLA In September, 2004, the Town entered into a loan
agreement with the Colorado Department of Local Affairs. Proceeds of the loan were used to fund water and wastewater improvement projects. Principal and interest payments in the amount
of $8,024 are due annually on September 1, through 2023. Interest accrues at 5.00%.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 20 NOTE 6: LONG-TERM DEBT (Continued) 2006 Colorado Department of Local Affairs (DOLA In August, 2006, the
Town entered into a loan agreement with the Colorado Department of Local Affairs. Proceeds of the loan were used to fund water and wastewater improvement projects. Principal and interest
payments in the amount of $25,901 are due annually on September 1, through 2016. Interest accrues at 5.00%. Future Debt Service Requirements Annual debt service requirements for the
outstanding bonds at December 31, 2009 are as follows: Year Ended December 31, Principal Interest Total 2010 $ 38,792 $ 27,908 $ 66,700 2011 40,746 25,954 66,700 2012 42,797 23,903 66,700
2013 44,953 21,747 66,700 2014 47,216 19,484 66,700 2015-2019 192,587 63,212 255,799 2020-2024 129,152 20,380 149,532 2025-2026 16,458 958 17,416 Total Debt Service Requirements $ 552,701
$ 203,546 $ 756,247 NOTE 7: RETIREMENT COMMITMENTS Police Pension Plan Plan Description -The Town provides pension benefits for its police officers through the Statewide Defined Benefit
Plan, a multi-employer cost sharing defined benefit pension plan administered by the Fire and Police Pension Association of Colorado (FPPA). A member is eligible for retirement after
attaining age 55 with 25 years of service. A member is eligible for early retirement after completing 30 years of service or attaining age 50. FPPA issues a publicly available annual
financial report that includes financial statements and required supplementary information for the Statewide Defined Benefit Plan. This report may be obtained by writing to: FPPA of
Colorado, 5290 DTC Parkway, Suite 100, Englewood, Colorado 80111 or by calling FPPA at 303-770-3772 in the Denver metro area or 1-800-332-FPPA (3772) from outside the metro area.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 21 NOTE 7: RETIREMENT COMMITMENTS (Continued) Funding Policy -The plan requires that the District contribute
an amount equal to 8% of the covered employee’s gross annual salary. The District contributions to the Plan for the year ending December 31, 2009, were $15,411 equal to the required
contribution. Defined Contribution Plan The Town offers all employees except for police offers who are covered under FPPA a defined contribution pension plan, which is administered by
the Colorado County Officials and Employees Retirement Association (CCOERA). Employee participation is mandatory and commences after one year of employment. Both the Town and employees
contribute an amount equal to 3.00% of compensation. During the year ended December 31, 2009, the Town contributions to the plan were $8,506, equal to the required contribution. Deferred
Compensation Plan The Town offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all Town employees
and permits them to defer a portion of their salary until future years. The Town does not match employee contributions The deferred compensation is not available to employees until termination,
retirement, death or unforeseeable emergency. NOTE 8: RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; injuries
to employees; and natural disasters. Commercial insurance coverage is purchased to handle these risks of loss. NOTE 9: COMMITMENTS AND CONTINGENCIES Colorado Water Resources and Power
Development Authority Loan Agreements In September 2009, the Town entered into a loan agreement with the Colorado Water Resources and Power Authority (the “Authority”). Proceeds of the
loan/grant are used to improve the Town’s wastewater treatment facility. Under the terms of the agreement, the Town received a combination of loan and grant funds totaling $5,800,000,
of which $2,000,000 were forgiven at loan closing and do not require repayment by the Town. The loan carries no interest. Semi-annual principal payments are due on November 1, and May
1, beginning in 2010 and ending in 2030.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 22 NOTE 9: COMMITMENTS AND CONTINGENCIES (Continued) In September 2009, the Town entered into a loan agreement
with the Colorado Water Resources and Power Authority (the “Authority”). Proceeds of the loan/grant are used to improve the Town’s water treatment facility. Under the terms of the agreement,
the Town received a combination of loan and grant funds totaling $3,340,000 of which $2,000,000 of the proceeds were forgiven at loan closing and do not require repayment by the Town.
The loan carries no interest. Semi-annual principal payments are due on November 1, and May 1, beginning in 2010 and ending in 2030 During 2009, none of the loan proceeds were transferred
to the Town by the Authority, as the Town receives the grant proceeds first prior to loan proceeds. Therefore, the debt was not recorded on the Town’s books as of December 31, 2009.
The Town is required to spend all proceeds of these agreements by October 31, 2010. The Town will record the debt under this agreement at that time. Wastewater Treatment Contract During
2005 the Town entered into an agreement with the Town of Silver Plume to process Silver Plume’s wastewater through the Town’s facility. Under the terms of the agreement, both Towns contribute
annually determined amounts the Capital Reserve and Emergency Reserve. These funds are held by the Town of Georgetown and require approval by a Joint Water Commission Board prior to
expenditure. During 2009, the Town of Georgetown and the Town of Silver Plume contributed $9,179 and $1,889, respectively, to this reserve. In addition, the Town of Silver Plume paid
the Town of Georgetown $51,030 during 2009 for wastewater treatment services under the terms of the contract. Wastewater Sludge Dewatering System In September, 2009, the Town entered
into an intergovernmental agreement with the City of Idaho Springs and the Town of Morrison for the purchase of a wastewater sludge dewatering system. Under the terms of the agreement,
the parties agreed to acquire the system and share ownership, use, operation, and maintenance costs equally. In addition, the Town of Morrison has applied and received grant funding
to help offset the cost of the purchase of the equipment. The Town’s share of the grant funds to be received is $67,000. Tabor Amendment Colorado voters passed an amendment to the State
Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local government. In November
1996, voters within the Town approved the collection, retention and expenditure of the all revenues generated by the Town in 1996 and subsequent years, notwithstanding the provisions
of the Amendment. The Town believes it is in substantial compliance with the Amendment.
TOWN OF GEORGETOWN, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2009 23 NOTE 9: COMMITMENTS AND CONTINGENCIES (Continued) The Town has established an emergency reserve, representing
3% of qualifying expenditures, as required by the Amendment. At December 31, 2009, the emergency reserve of $48,000 was recorded in the General Fund. NOTE 10: PRIOR PERIOD ADJUSTMENTS
The beginning net assets of the governmental activities was increased by $144,446 to correctly state the beginning balances of the capital assets and compensated absences. The beginning
net assets of the Water Fund and the Sewer Fund were decreased by $494,111 and $236,907, respectively, to correctly state the capital asset balances in the funds.
REQUIRED SUPPLEMENTARY INFORMATION
ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Taxes $ 569,046 $ 527,086 $ (41,960) Licenses and Permits 48,120 59,633 11,513 Intergovernmental 205,800 221,612
15,812 Court 25,875 21,262 (4,613) Interest 1,500 367 (1,133) Miscellaneous 6,200 14,281 8,081 TOTAL REVENUES 856,541 844,241 (12,300) EXPENDITURES Current General Government 256,920
173,079 83,841 Public Safety 285,940 273,287 12,653 Public Works 201,833 168,786 33,047 Parks and Recreation 65,860 36,592 29,268 Capital Outlay 31,000 26,577 4,423 TOTAL EXPENDITURES
841,553 678,321 163,232 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 14,988 165,920 150,932 OTHER FINANCING SOURCES (USES) Transfers Out (14,000) (14,243) (243) Transfers In 5,500 5,174
(326) TOTAL OTHER FINANCING SOURCES (USES) (8,500) (9,069) (569) NET CHANGE IN FUND BALANCE 6,488 156,851 150,363 FUND BALANCE, Beginning 78,734 34,852 (43,882) Prior Period Adjustment
-27,653 27,653 FUND BALANCE, Ending $ 85,222 $ 219,356 $ 134,134 TOWN OF GEORGETOWN, COLORADO GENERAL FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2009 See the accompanying
independent auditors' report. 24
ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Sales Tax $ 123,500 $ 119,004 $ (4,496) Intergovernmental 87,600 73,000 (14,600) Interest 400 299 (101) TOTAL REVENUES
211,500 192,303 (19,197) EXPENDITURES Current General Government Professional Services 49,500 22,356 27,144 Miscellaneous -4,220 (4,220) Capital Outlay 207,600 105,086 102,514 TOTAL
EXPENDITURES 257,100 131,662 125,438 NET CHANGE IN FUND BALANCE (45,600) 60,641 106,241 FUND BALANCE, Beginning 102,464 94,973 (7,491) FUND BALANCE, Ending $ 56,864 $ 155,614 $ 98,750
TOWN OF GEORGETOWN, COLORADO SALES TAX FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2009 See the accompanying independent auditors' report. 25
COMBINING AND INDIVIDUAL FUND SCHEDULES
CONSERVATION TOWN TRUST PROMOTION FUND FUND TOTALS ASSETS Cash and Investments $ 4,621 $ 11,708 $ 16,329 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable $ -$ 50 $ 50 TOTAL LIABILITIES
-50 50 FUND EQUITY Unreserved, Reported in Special Revenue Funds 4,621 11,658 16,279 TOTAL FUND EQUITY 4,621 11,658 16,279 TOTAL LIABILITIES AND FUND EQUITY $ 4,621 $ 11,708 $ 16,329
TOWN OF GEORGETOWN, COLORADO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET As of December 31, 2009 See the accompanying independent auditors' report. 26
CONSERVATION TOWN TRUST PROMOTION FUND FUND TOTALS REVENUES Intergovernmental $ 5,174 $ -$ 5,174 Charges for Services -21,703 21,703 Donations -1,150 1,150 Interest 10 -10 TOTAL REVENUES
5,184 22,853 28,037 EXPENDITURES General Government -34,588 34,588 TOTAL EXPENDITURES -34,588 34,588 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,184 (11,735) (6,551) OTHER FINANCING
SOURCES (USES) Transfers Out (5,174) -(5,174) Transfers In -14,243 14,243 TOTAL OTHER FINANCING SOURCES (USES) (5,174) 14,243 9,069 NET CHANGE IN FUND BALANCE 10 2,508 2,518 FUND BALANCE,
Beginning 4,611 9,150 13,761 FUND BALANCE, Ending $ 4,621 $ 11,658 $ 16,279 Year Ended December 31, 2009 TOWN OF GEORGETOWN, COLORADO NONMAJOR GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES See the accompanying independent auditors' report. 27
ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Lottery Revenues $ 5,500 $ 5,174 $ (326) Interest 45 10 (35) TOTAL REVENUES 5,545 5,184 (361) EXPENDITURES Parks
and Recreation ---TOTAL EXPENDITURES ---EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,545 5,184 (361) OTHER FINANCING SOURCES (USES) Transfers Out (5,500) (5,174) 326 TOTAL OTHER FINANCING
SOURCES (USES) (5,500) (5,174) 326 NET CHANGE IN FUND BALANCE 45 10 (35) FUND BALANCE, Beginning 4,582 4,611 29 FUND BALANCE, Ending $ 4,627 $ 4,621 $ (6) TOWN OF GEORGETOWN, COLORADO
CONSERVATION TRUST FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2009 See the accompanying independent auditors' report. 28
ORIGINAL VARIANCE AND FINAL Positive BUDGET ACTUAL (Negative) REVENUES Charges for Services $ 22,558 $ 21,703 $ (855) Donations 500 1,150 650 TOTAL REVENUES 23,058 22,853 (205) EXPENDITURES
Current General Government Professional Services 6,736 15,960 (9,224) General and Administrative 38,800 18,628 20,172 TOTAL EXPENDITURES 45,536 34,588 10,948 EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (22,478) (11,735) 10,743 OTHER FINANCING SOURCES (USES) Transfers In 14,000 14,243 243 TOTAL OTHER FINANCING SOURCES (USES) 14,000 14,243 243 NET CHANGE IN FUND
BALANCE (8,478) 2,508 10,986 FUND BALANCE, Beginning 10,514 9,150 (1,364) FUND BALANCE, Ending $ 2,036 $ 11,658 $ 9,622 TOWN OF GEORGETOWN, COLORADO TOWN PROMOTION FUND BUDGETARY COMPARISON
SCHEDULE Year Ended December 31, 2009 See the accompanying independent auditors' report. 29
VARIANCE ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Charges for Services $ 410,800 $ 410,800 $ 402,750 $ (8,050) Tap Fees 500 500 100 (400) Intergovernmental 205,000
1,520,000 685,837 (834,163) Investment Income 1 1 -(1) Other Revenues 26,000 26,000 3,900 (22,100) TOTAL REVENUES 642,301 1,957,301 1,092,587 (864,714) EXPENDITURES Salaries and Benefits
122,978 122,978 108,028 14,950 Professional Services 77,260 98,021 107,521 (9,500) Repairs and Maintenance 101,000 101,000 38,609 62,391 Administration and General 62,400 62,400 39,506
22,894 Miscellaneous --898 (898) Capital Outlay 325,000 1,619,239 772,137 847,102 Debt Service Principal 17,335 17,335 17,335 -Interest 19,855 19,855 19,854 1 TOTAL EXPENDITURES 725,828
2,040,828 1,103,888 936,940 NET INCOME, Budget Basis $ (83,527) $ (83,527) (11,301) $ 72,226 GAAP BASIS ADJUSTMENTS Capital Outlay 772,137 Depreciation (42,412) Principal Paid on Long-Term
Debt 17,335 NET INCOME, GAAP Basis 735,759 NET ASSETS, Beginning 763,833 Prior Period Adjustment (494,111) NET ASSETS, Ending $ 1,005,481 TOWN OF GEORGETOWN, COLORADO WATER FUND BUDGETARY
COMPARISON SCHEDULE Year Ended December 31, 2009 See the accompanying independent auditors' report. 30
VARIANCE ORIGINAL FINAL Positive BUDGET BUDGET ACTUAL (Negative) REVENUES Charges for Services $ 368,000 $ 368,000 $ 401,968 $ 33,968 Tap Fees 500 500 100 (400) Investment Income 1,290
1,290 381 (909) Intergovernmental 194,500 2,062,000 1,220,101 (841,899) Capital Contributions 63,000 58,000 11,067 (46,933) Transfers 26,315 26,315 -(26,315) Other Revenues 16,000 16,000
4,000 (12,000) TOTAL REVENUES 669,605 2,532,105 1,637,617 (894,488) EXPENDITURES Salaries and Benefits 119,489 119,489 118,260 1,229 Professional Services 33,560 38,060 48,026 (9,966)
Repairs and Maintenance 56,000 56,000 12,722 43,278 Administration and General 127,650 127,650 131,630 (3,980) Miscellaneous 800 800 1,447 (647) Capital Outlay 285,000 2,120,250 1,307,485
812,765 Debt Service Principal 19,337 19,337 19,336 1 Interest 10,176 10,176 10,176 -TOTAL EXPENDITURES 652,012 2,491,762 1,649,082 842,680 NET INCOME, Budget Basis $ 17,593 $ 40,343
(11,465) $ (51,808) GAAP BASIS ADJUSTMENTS Capital Outlay 1,307,485 Depreciation (55,796) Principal Paid on Long-Term Debt 19,336 NET INCOME, GAAP Basis 1,259,560 NET ASSETS, Beginning
2,070,264 Prior Period Adjustment (236,907) NET ASSETS, Ending $ 3,092,917 TOWN OF GEORGETOWN, COLORADO SEWER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2009 See the
accompanying independent auditors' report. 31
AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 2009 BALANCE BALANCE DECEMBER 31 DECEMBER 31 2008 ADDITIONS DEDUCTIONS 2009 ASSETS Cash and Investments
$ -$ 62,000 $ 62,000 $ -LIABILITIES Due Other Governments $ -$ 62,000 $ 62,000 $ -TOWN OF GEORGETOWN, COLORADO See the accompanying independent auditors' report. 32
COMPLIANCE
600 17TH STREET SUITE 2800 SOUTH • DENVER, COLORADO 80202 •TEL [phone] •FAX [phone] To the Mayor and Town Board of Selectmen Town of Georgetown, Colorado 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 We have audited
the financial statements of the governmental activities, the business-type activities and each major fund of the Town of Georgetown, Colorado, which collectively comprise the Town’s
basic financial statements and have issued our report thereon dated September 21, 2010. 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. Internal Control
over Financial Reporting In planning and performing our audit, we considered the Town’s internal control over financial reporting as a basis for designing our auditing procedures for
the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over financial reporting. A control deficiency exists when the design or operation
of a control does not allow management of employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Town’s ability to initiate, authorize, record, process, or report financial data
reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Town’s financial statements that is more
than inconsequential will not be prevented or detected by the Town’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Town’s internal control. Our consideration
of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal
control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement,
we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely
for the information and use of the Town Board of Selectmen, management, and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified
parties. September 21, 2010
600 17TH STREET SUITE 2800 SOUTH • DENVER, COLORADO 80202 •TEL [phone] •FAX [phone] To the Mayor and Town Board of Selectmen Town of Georgetown, Colorado REPORT ON COMPLIANCE
WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Compliance We have audited the compliance of the Town
of Georgetown, Colorado with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable
to each of its major federal programs for the year ended December 31, 2009. The Town’s major federal programs are identified in the summary of auditor’s results section of the accompanying
schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility
of the Town’s management. Our responsibility is to express an opinion on the Town’s compliance based on our audit. 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal