C150120 Financials 2011 - Laserfiche WebLink

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IMANCOS WATER CONSERVANCY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2011 i I10. Tax Spending and Debt Limitations -Taxpayer's Bill of Rights (TABOR) Colorado voters p assed an amendment of the State Constitution, Article X, Section 20, which has several limitations, including revenue-raising, spending abilities, and other specific I requirements of state and local governments. The amendment is complex and subject to judicial interpretation. I It requires emergency reserves up to 3% of spending limits - the reserves for years after 1996 must be at least 3% of fiscal year spending. The amendment allows for an increase of revenues under formulas using inflation and local growth. Voter approval is required for tax I increases and spending above the inflation and growth factor. Revenue collected, kept, or spent illegally shall be refunded with interest. I The District believes it is in compliance with the requirements of TABOR; however, the District has made certain interpretations of the amendment's language in order to determine its compliance. I11. Pension Plan I Effective December 1, 2011, the District established a 457 retirement plan. This is a defined contribution plan where each participant may elect to contribute to a deferred compensation plan established pursuant to IRC Section 457. Through the deferred compensation plan, a member employer defers payment of a portion of an employee's current salary and deposits the deferred payment with the Colorado County Officials and Employees Retirement Association (CCOERA). Upon a participant's retirement or termination of employment, CCOERA may begin payment of this deferred amount. In 2011, the District's participating Iemployee contributed $9,600 to the pension plan. All plan administrative expenses are borne by the participants. I12. Rehabilitation Project I On July 9, 2010 a repayment agreement between the District and The United States of America, Department of the Interior, Bureau of Reclamation was signed. This agreement calls for the repayment of 35% of the cost of the Jackson Gulch Rehabilitation Project up to I $2,900,000. The total amount of the project is approved for $8,250,000. To date, the District has drawn $1,750,000 and spent$1,340,281. Funds were recorded as follows: IRehabilitation project income $727;781 Note payable 612,500 IDeferred revenues _409,719 $1,750,000 IPursuant to P.L. 111-11 subsection (b)(3)(C) and as determined through an independent audit of the District's financial records, the District shall receive credit for"any amounts it paid I before March 30, 2009, for engineering work and improvements directly associated with the rehabilitation project" and shall receive credit for any amounts it paid from the date of enactment of P.L. 111-11 to the execution of the above repayment contract. These credits will be applied and deducted from the District's total reimbursement obligation. 1 16