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RESOLUTION NO. 5389
A RESOLUTION APPROVING THE PRELIMINARY OFFICIAL
STATEMENT DATED MAY 2, 1984 FOR CITY OF PUEBLO,
COLORADO, GENERAL OBLIGATION STORM SEWER IMPROVEMENT
BONDS, SERIES 1984, AND GENERAL OBLIGATION REFUNDING
BONDS, SERIES 1984, IN THE AGGREGATE PRINCIPAL AMOUNT
OF $9,150,000 AND AUTHORIZING AND DIRECTING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE FINAL
OFFICIAL STATEMENT WITH ANY APPROPRIATE CHANGES AND
ALTERATIONS AND TO DELIVER SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PUEBLO, COLORADO, that:
SECTION 1.
The Preliminary Official Statement, dated May 2, 1984
for City of Pueblo, Colorado, General Obligation Storm Sewer
Improvement Bonds, Series 1984, and General Obligation
Refunding Bonds, Series 1984, in the aggregate principal
amount of $9,150,000, copies of which are on file in the
office of the City Clerk and available for public
inspection, is hereby approved and the President of the City
Council is hereby authorized and directed to execute and
deliver the final Official Statement with any appropriate
changes and alterations for and on behalf of the City of
Pueblo, Colorado.
INTRODUCED: May 14, 1984
By ALLYN MIDDELKAMP
Councilman
APPROVED:
resl ent t e Council
ATTEST:
C ty Clerk
r
CD m PRELIMINARY OFFICIAL STATEMENT DATED MAY 2, 1984
e y NEW ISSUE Standard & Poor's Rating: AA
E o In the opinion of Bond Counsel, under existing laws, regulations, rulings and judicial decisions,
=f interest on the Bonds is exempt from all present federal income taxes, and, under existing laws of the
CD y State of Colorado, interest on the Bonds is exempt from all present Colorado individual and corpo-
rate income taxes.
RL $994559000*
Ew7 O co
a CITY OF PUEBLO, COLORADO
o $5,000,000 GENERAL OBLIGATION STORM SEWER IMPROVEMENT BONDS
CD m R SERIES 1984
= y and
$4,455,000 GENERAL OBLIGATION REFUNDING BONDS
Z1. C2 O_._
r o d SERIES 1984
y Dated: June 1, 1984 Due: December 1, as shown below
" The General Obligation Storm Sewer Improvement Bonds, Series 1984 (the "Series 1984 Bonds ")
m and the General Obligation Refunding Bonds, Series 1984 (the "Series 1984 Refunding Bonds ") (the
= o = Series 1984 Bonds and the Series 1984 Refunding Bonds are sometimes referred to herein collectively
= m ° as the "Bonds ") will be issued as fully registered bonds without coupons in denominations of $5,000
o and integral multiples thereof. The principal of and premium, if an on the Bonds will be payable at
22=
g P P P P Y, P Y
m the principal office of , in ,Colorado, as Paying
Agent. Interest on the Bonds is payable on June 1 and December 1, commencing December 1, 1984 by
° check or draft of the Paying Agent mailed to the registered owner.
10 N � O
MATURITY SCHEDULE*
o h $5,000,000 Series 1984 Bonds
W o,
CD Year Principal Interest Year Principal Interest
E a o (December 1) Amount Rate (December 1) Amount Rate
eo 0 1986 $125,000 % 1994 $450,000 %
C , y a 1987 135.000 1995 490.000
`O .2 - a 1988 145,000 1996 540,000
o c 1989 155,000 1997 590,000
= ` � 1990 165,000 1998 645,000
CL E 99 1991 180,000 1999 705,000
E'EN 1992 195,000 2000 270,000
0 1993 210,000
co 3 MATURITY SCHEDULE*
N
N
_ h $4,455,000 Series 1984 Refunding Bonds
`o Year Principal Interest Year Principal Interest
__ o (December 1) Amount Rate (December 1) Amount Rate
° ° `• 2000 $ 505,000 % 2003 $1,030,000 %
m1=
= z ''
= y E 2001 850,000 2004 1,135,000
ID
40 2002 935,000
o <o Price: 100%
° o (Plus Accrued Interest from December 1, 1984)
3 The Series 1984 Bonds maturing prior to December 1, 19 , are noncallable for redemption prior
E to maturity. Series 1984 Bonds maturing on December 1, 19 and thereafter are subject to redemption
E = prior to maturity as described herein. The Series 1984 Refunding Bonds maturing on or before
December 1, 19 , are noncallable for redemption prior to maturity. Series 1984 Refunding Bonds
= maturing on December 1, 19 and thereafter are subject to redemption prior to maturity as described
herein.
CA
<e = = The Bonds constitute legally valid general obligations of the City. All of the taxable property in the
Ems=
> > City is subject to the levy of general (ad valorem) taxes to pay the principal of and interest on the Bonds
M without limitation as to rate or amount.
The Bonds are offered, subject to prior sale, when, as and if issued by the City and accepted by the
Underwriter named below, and subject to the approval of legality by Kutak Rock & Huie, as Bond
W 3 :` Counsel and Disclosure Counsel, and certain other conditions. It is expected that delivery of the Series
1984 Bonds will be made on or about June 14, 1984, in Denver, Colorado, against payment therefor.
ee
W�
co = Boettcher & Company
f M,eeaenerd Bark= slice 1910 Im.
The date of this Official Statement is May , 1984
* Preliminary; subject to change.
No person has been authorized to give any information
or to make any representations other than those contained in
this Official Statement in connection with the offers made
hereby and, if given or made, such information or represen-
tations must not be relied upon as having been authorized by
the City or the Underwriter. Neither the delivery of this
Official Statement nor any sale hereunder shall under any
circumstances create any implication that there has been no
change in the affairs of the City since the date hereof.
This Official Statement does not constitute an offer or
solicitation in any jurisdiction in which such offer or
solicitation is not authorized, or in which the person
making such offer or solicitation is not qualified to do so
or to any person to whom it is unlawful to make such offer
or solicitation. The information set forth herein has been
obtained from the City and other sources which are believed
to be reliable, but it is not guaranteed as to accuracy or
completeness by, and is not to be construed as a represen-
tation by, the Underwriter.
CONTENTS Off' OFFICIAL STATEMENT
Page
SUMMARY STATEMENT .. ...............................
3
INTRODUCTORY STATEMENT ............................
5
USE OF PROCEEDS .... ...............................
6
DEBT STRUCTURE ..... ...............................
7
ASSESSMENTS, LEVIES AND COLLECTION ................
11
THE BONDS .......... ...............................
13
THE CITY ............................. ...........
16
DEBT SERVICE SCHEDULE .............................
24
PROPOSED ADDITIONAL FINANCINGS ....................
26
PUEBLO DEMOGRAPHICS ...............................
26
THE ORDINANCE ...... ...............................
29
UNDERWRITING ....... ...............................
30
RATINGS............ ...............................
30
ARBITRAGE .......... ...............................
31
PENDING LEGAL PROCEEDINGS .........................
31
TAX EXEMPTION ...... ...............................
31
EXPERTS............ ...............................
31
APPROVAL OF LEGAL PROCEEDINGS .....................
31
MISCELLANEOUS ...... ...............................
32
APPENDIX A - Audited Combined Financial Statements
of the City of Pueblo, Colorado, as of
and for the year ended December 31, 1983
THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.
IN CONNECTION WITH THE OFFERING OF THE BONDS, THE
UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT
STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A
LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN
MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED
AT ANY TIME.
SUMMARY STATEMENT
All capitalized terms used in this Summary Statement
shall have the same meanings ascribed to such terms in the
Official Statement. This Summary Statement is subject in
all respects to more complete information set forth in the
Official Statement and the appendices thereto.
The City
The City of Pueblo, Colorado, is a body corporate and
politic and a municipal corporation duly organized and
existing as a home rule city under the laws of the State of
Colorado. The City, with an estimated population of
100,117, is located in south - central Colorado, approximately
120 miles south of Denver, Colorado, and 45 miles south of
Colorado Springs, Colorado. See "THE CITY" and "PUEBLO
DEMOGRAPHICS."
Issuance of Bonds and Purpose of Issue
The City is offering its City of Pueblo, Colorado,
General Obligation Storm Sewer Improvement Bonds, Series
1984 (the "Series 1984 Bonds "), in the aggregate principal
amount of $5,000,000, and its General Obligation Refunding
Bonds, Series 1984 (the "Series 1984 Refunding Bonds ") (the
Series 1984 Bonds and the Series 1984 Refunding Bonds are
collectively referred to herein as the "Bonds ") in the
aggregate principal amount of $4,455,000 *. The Bonds are
issuable only as fully registered bonds without coupons in
denominations of $5,000 and integral multiples thereof. The
proceeds of the Bonds will be used for the purpose of
providing funds to defray the cost of (i) the construction
of certain storm sewer improvements and extensions within
the City, (ii) refunding the City's General Obligation
Bonds, Series A, dated March 1, 1974, previously issued and
currently outstanding in the aggregate principal amount of
$595,000 (the "Series A Bonds "), (iii) refunding the City's
General Obligation Refunding Various Purpose Bonds, Series
B, dated March 1, 1974, previously issued and currently
outstanding in the aggregate principal amount of $4,380,000
(the "Series B Bonds ") and (iv) paying certain costs and
expenses, including underwriter's discount, associated with
the issuance of the Bonds, all as described under "USE OF
PROCEEDS."
*Preliminary; subject to change.
-3-
The storm sewer improvement project (the "Project ") is
intended to alleviate flooding problems in Leach's Westview
Addition to the City. The Project will increase the storm
sewer system capacity in the particular area from approxi-
mately 50 cubic feet per second ( "cfs ") to approximately 700
cfs. Construction of the Project is expected to begin in
late August 1984 and to be completed in late May 1985. See
"USE OF PROCEEDS."
Security for the Bonds
The Bonds are direct general obligations of the City,
payable as to both principal and interest from general (ad
valorem) taxes levied against all taxable property within
the City without limitation as to rate or amount. See "THE
BONDS."
Additional Bonds
Additional general obligation bonds payable from
general property tax proceeds may be issued by the City upon
a favorable vote of the qualified electors thereof, except
that general obligation bonds for the acquisition, extension
or improvement of water or the municipal waterworks system
are not required to be approved by such favorable vote.
-4-
OFFICIAL STATEMENT
$9,455,000*
CITY OF PUEBLO, COLORADO
$5,000,000 GENERAL OBLIGATION STORM SEWER IMPROVEMENT BONDS
SERIES 1984
and
$4,455,000* GENERAL OBLIGATION REFUNDING BONDS
Series 1984
INTRODUCTORY STATEMENT
This Official Statement, which includes the cover page,
summary statement and appendices hereto, is furnished in
connection with the offering of $9,455,000* aggregate prin-
cipal amount of General Obligation Storm Sewer Improvement
Bonds, Series 1984 (the "Series 1984 Bonds ") and General
Obligation Refunding Bonds, Series 1984 (the "Series 1984
Refunding Bonds ") (the Series 1984 Bonds and the Series 1984
Refunding Bonds are collectively referred to herein as the
"Bonds") of the City of Pueblo, Colorado ( the "City ") .
The Bonds are legally valid general obligations binding
upon the City. All of the taxable real property in the City
is subject to the levy of general (ad valorem) taxes to pay
the principal of and interest on the Bonds without limita-
tion as to rate or amount.
The Series 1984 Bonds are being issued pursuant to the
City's Charter and a bond ordinance adopted by the City
Council of the City (the "Ordinance "). At a general
municipal election held in the City on November 8, 1983, a
majority of the qualified electors voting voted in favor of
the issuance of the Series 1984 Bonds. The Series 1984
Refunding Bonds are being issued pursuant to the City's
powers as a home rule city under Article XX of the Colorado
Constitution, the Colorado Public Securities Refunding Act,
C.R.S. 11 -56 -101 et seq. the City's Charter and the
Ordinance. See "THE ORDINANCE."
Brief descriptions of the City, the Bonds and the
Ordinance are included in this Official Statement. All
references herein to the Ordinance are qualified in their
entirety by references to such document, and references
herein to the Bonds are qualified in their entirety by
reference to the form thereof included in the Ordinance.
During the period of the offering, copies of the Ordinance
will be available at the offices of Boettcher & Company,
Inc. (the "Underwriter ") in Pueblo and Denver, Colorado.
Copies of the 1982 audited financial statements for the City
will also be available at the offices of the Underwriter and
will be forwarded to any prospective investor so requesting.
*Preliminary; subject to change.
-5-
IMP
USE OF PROCEEDS
The net proceeds from the sale of the Bonds will be
used for the purpose of providing funds to defray the cost
of (i) the construction of certain improvments and extensions
of the City's storm sewer system in the area around the
Colorado State Fairgrounds, (ii) refunding the City's
General Obligation Bonds, Series A, dated March 1, 1974,
previously issued and currently outstanding in the aggregate
principal amount of $595,000 (the "Series A Bonds "), (iii)
refunding the City's General Obligation Refunding Various
Purpose Bonds, Series B, dated March 1, 1974, previously
issued and currently outstanding in the aggregate principal
amount of $4,380,000 (the "Series B Bonds ") (the Series A
Bonds and the Series B Bonds are collectively referred to
herein as the "Refunded Bonds ") and (iv) paying certain
costs and expenses, including Underwriter's discount,
associated with the issuance of the Bonds.
The storm sewer improvement project (the "Project ") is
intended to alleviate flooding problems in the area of
Leach's Westview Addition to the City, and involves the
construction of a major storm sewer outfall line from Small
Street along Prairie Avenue to St.Clair Street, thence along
St.Clair Street to Alma Street, thence along Alma Street to
Goodnight Street and thence along Argyle Street to the
Arkansas River, an overall distance of approximately 7,000
feet. The Project will increase storm sewer capacity in the
particular area from approximately 50 cubic feet per second
("cfs ") to approximately 700 cfs. The Project is expected
to meet the storm sewer needs of the particular area for the
foreseeable future. The Project is being designed by
Sellards & Grigg, Lakewood, Colorado. Construction is
expected to begin in late August 1984 and to be completed in
late May 1985.
The estimated application of the proceeds of the Bonds
is as follows:
Construction ............................. $
Escrow Fund ..............................
Costs of Issuance and
Underwriter's Discount* ................
$ 9,455,000
* Allocable $ to Series 1984 Bonds and $ to
Series 1984 Refunding Bonds.
-6-
DEBT STRUCTURE
Debt Limitation
The City's Charter (the "Charter ") provides that the
City may not issue bonds payable out of general property
taxes (i) except pursuant to an ordinance duly adopted by
the City Council of the City, (ii) until the question of
such issuance shall have been approved by a majority of the
qualified electors of the City at a special or general
election, and (iii) if the aggregate amount of such
indebtedness of the City (after giving effect to the
indebtedness to be incurred) would exceed 10% of the
assessed valuation of the taxable property within the City
as shown by the last assessment for City purposes. Excluded
from the computation of indebtedness for the purpose of this
limitation are general obligation bonds or other evidences
of indebtedness issued by the City for the acquisition,
extension or improvement of water or the municipal water
works system, local improvement district bonds, revenue
bonds or refunding bonds. The City's current debt limit is
$27,213,402 and the amount of outstanding debt applicable to
the limit (after deductions allowed by law and assuming the
issuance of the Bonds) is $9,455,000, leaving a legal debt
margin of $17,758,402.
Overlapping Debt
The only entity which overlaps the City and which has
substantial bonded indebtedness is School District #60. As
of December 31, 1983, School District #60 had $1,675,000 in
outstanding bonded indebtedness, with the last principal and
interest payment due in 1984. The mill levy for School
District #60 in 1983 (collectible in 1984) was 51.695, of
which 4.229 is intended for the repayment of bonded
indebtedness.
Some portions of the City are subject to property tax
levies for bonded indebtedness of metropolitan districts or
other entities which overlap small portions of the City, but
none of this indebtedness is material from the standpoint of
the amount payable by residents of the City. Pueblo County
imposed taxes at a mill levy of 31.230 in 1983 for county
services; such taxes are payable in 1984.
Summary of Indebtedness
The following table summarizes the general debt and
revenue bond obligations of the City as of May 1, 1984, as
adjusted to give effect to the Bonds:
-7-
Authorized Interest Outstanding
CateQory of Indebtedness Amount Rate Amount
Direct General Debt
G.O. Storm Sewer Improvement
Bonds, Series 1984 $
5,000,000*
%
$ 5,000,000
G.O. Refunding Bonds,
Series 1984
4,455,000*
%
4,455,000
G.O. Water Refunding
Bonds Series 1984
24,115,000
6.6- 9.625%
24,115,000
Downtown General
Improvement District
General Obligation (1)
975,000
5.4 -7.0%
813,000
Total Direct Debt $34,383,000
Overlapping General Debt
School District #60 11,540,000 5.2 -6.25% 735,000
Total Direct and Overlapping Debt $ 35,118,000
Revenue Bond Obligations
Parking Facilities $ 475,000 4.25 -4.5% $ 50,000
Golf Course 200,000 4.75 -7.75% 10,000
Sewer Revenue 3,800,000 7.75- 11.625% 3,655,000
Total Revenue Bond Obligations $ 3,715,000
*Subject to change.
(1) The District has purchased government securities in an amount
sufficient to pay the interest on and principal of the bonds as such
becomes due.
The foregoing table does not include various obligations
such as Special Assessments or Capital Leases referred to in
Note 15 to the City's 1983 financial statements included as
Appendix A hereto.
Population and Debt Ratios
The following table sets forth data relating to the
ratio of general debt and overlapping debt to population and
assessed valuation:
Estimated City
1984 1983 1982 1981 1980 1979
Population 100,117 100,117 101,000 101,117 101,686 106,000
Direct Debt S 34,383,000(1) $ 32,488,000 $ 34,480,000 $ 30,390,000 $ 31,420,000 $ 32,410,000
Overlapping Debt(2) $ 735,000 $ 1,675,000 $ 6,230,000 $ 6,230,000 $ 8,220,000 $ 10,040,000
Per Capita Direct
Debt $ 343.43 $ 324.50 $ 341.39 $ 330.54 $ 308.99 $ 305.75
Per Capita Direct
Plus Overlapping
Debt(2) $ 350.77 $ 341.23 $ 403.07 $ 362.16 $ 389.83 $ 400.47
Assessed Valuation(3) $272,134,020 $264,876,490 $263,193,020 $264,368,910 $249,389,910 $212,601,570
Direct Debt to
Assessed Valuation .1263 .1227 .1310 .1150 .1260 .1524
Direct Plus Over-
lapping Debt to
Assessed Valuation .1290 .1290 .1547 .1385 .1589 .1997
(1) Includes the Bonds, General Obligation Water Refunding Bonds, Series 1984A and
Series 1984B, and Downtown Improvement Bonds. Assumes average interest rate
of 9.750% on the Bonds.
(2) Includes only School District #60. See "Overlapping Debt."
(3) Assessed values upon which taxes are collectible in the years indicated.
Estimated Combined Debt Service Schedule
The following table presents the City's principal and
interest obligations on the Bonds (with pro forma interest
at an estimated average interest rate of 9.750%), other
existing general obligation indebtedness, and the total
estimated debt service requirements:
STIM
General
Year
Obligation
Fnding
t he S
19 84 Bon
The Series 12
Refund Bonds
Combined
Water Bond
Total
June 30
Principal
Interes
Princal
Interest
Debt Service
Debt Se
De bt Service
1985
--
$436,012.73
$ --
$430,800.50
$ 866,813.23
$2,293,057.67
$3,159,870.90
1986
--
452,347.50
--
446,940.00
899,287.50
2,750,810.00
3,650,097.50
1987
125,000
448,285.00
--
446,940.00
1,020,225.00
3,823,942.50
4,844,176.50
1988
135,000
439,497.50
--
446,940.00
1,021,437.50
3,826,392.50
4,8 +7,830.00
1989
145,000
429,335.00
--
446,940.00
1,021,275.00
3,825,292.50
4,846,567.50
1990
155,000
417,891.25
--
446,940.00
1,019,831.25
3,816,610.00
4,836,441.25
1991
165,000
405,285.00
--
446,940.00
1,017,225.00
3,815,085.00
4,832,310.00
1992
180,000
391,260.00
--
446,940.00
1,018,200.00
3,814,375.00
4,832,575.00
1993
195,000
375,547.50
--
446,940.00
1,017,487.50
3,822,447.50
4,839,935.00
1994
210,000
358,072.50
--
446,940.00
1,015,012.50
3,822,880.00
4,837,892.50
1995
450,000
328,635.00
--
446,940.00
1,225,575.00
3,819,257.50
5,044,832.50
1996
490,000
285,845.00
--
446,940.00
1,222,785.00
3,739,865.00
4,962,650.00
1997
540,000
237,925.00
--
446,940.00
1,224,865.00
3,236,520.00
4,461,385.00
1998
590,000
185,520.00
--
446,940.00
1,222,460.00
3,215,800.00
4,438,260.00
1999
645,000
125,535.00
--
446,940.00
1,217,475.00
1,607,912.50
2,825,381.50
2000
705,000
60,382,50
--
466,940.00
1,212,322.50
--
1,212,322.50
2001
270,000(2)
13,095.00
505,000
422,195.00
1,210,290.00
--
1,210,290.00
2002
850,000
355,375.00
1,205,375.00
--
1,205,375.00
2003
935,000
266,550.00
1,201,550.00
--
1,201,550.00
2004
1,030,000
167,785.00
1,197,785.00
--
1,197,785.00
2005
1,135,000(3)
57,885.00
1,192,885.00
--
1,192,885.00
(1) Includes
debt service
on $24,115,000
General Obligation
Water Refunding
Bonds, Series 1984A and Series 19848,
which are
additionally
secured
by a pledge of
the net revenues of
the City's municipal
water works system, and it is anticipated
that such
debt service
will be
paid from such
revenues. The General
Obligation Water
Refunding Bonds,
Series 1984A and
Series 1984B, were
authorized
by an ordinance
finally
adopted by the City Council
on March 26,
1984, and issued
as of April 15,
1984.
(2) Final
maturity of
the Series 1984
Bonds is December
1, 2000.
(3) Final
maturity of
the Series 1984
Refunding Bonds is
December 1, 2004.
STIM
ASSESSMENTS, LEVIES AND COLLECTION
Procedures
After the City Council of the City enacts the ordinance
to make the proper mill levy for the ensuing fiscal year (as
described under "THE CITY - -City Budget "), the City Council
is directed to cause the new mill levy to be certified to
the County Commissioners. The County Assessor extends the
mill levy upon the tax list and includes the taxes in the
County Assessor's general warrant to the County Treasurer
for collection.
Colorado statutes provide procedures for the valuation
of property for assessment purposes. Under Colorado law,
both real and personal property is subject to taxation, but
there are classes of property which are exempt from taxation
including household furnishings, personal effects and
intangible personal property. Using manuals and data
furnished by the State Property Tax Administrator, the
County Assessor determines the actual value of all taxable
real property, and most other classes of taxable property,
as of January 1 each year, the annual date of assessment.
The factors to be considered by the County Assessor to
determine actual value in the case of unimproved land
(except portions used for open space) include consideration
of the amount of time required to realize potential future
values.
The assessed valuation of residential property, as
provided in the Colorado statutes, is 21% of the base year
value (1977 for property tax year 1984); agricultural
property is valued on the basis of earning or productive
capacity; all other property, except public utilities,
producing mines and oil and gas lands, are assessed at 29%
of value; producing mines and land or leaseholds producing
oil or gas are valued on a basis of annual production; and
household furnishings, personal effects, business inven-
tories, livestock, agricultural products and agricultural
equipment are exempt from taxation.
In addition to initial assessment by the pertinent
County Assessor, the applicable Colorado statutes provide an
opportunity for review at various stages by the County Board
of Equalization, the Board of Assessment Appeals, and the
state courts. The State Board of Equalization has provided
statutory authority to issue orders to county assessors to
raise or lower the aggregate valuation with respect to any
class or subclass of property. According to the State
Property Tax Administrator, Pueblo County was found to be in
-11-
substantial compliance in respect to the valuation of all
categories of property in 1983 and no orders were issued to
the Pueblo County Assessor.
Pursuant to the City's sales tax ordinance, the City
Council cannot adopt a mill levy exceeding 19.75 per
thousand dollars assessed value (19.75 mills) for municipal
purposes (excluding water bonds) without causing the City's
sales and use tax ordinance to become null and void. For
1983 the mill levy was 18.00 mills. If the City Council
fails to make the tax levy for any year, the rate last fixed
is the rate for the ensuing year.
Historical Property Tax Data
The following table, based on information compiled by
the City, provides a summary of assessed valuations, tax
levies, collections and delinquencies for the City:
( 1 ) Assessed values are for the years in which taxes are collected.
-12-
Total
Outstanding
Total Tax
Collections
Accumulated
Delinquent
Collections
as a
Outstanding
Taxes as
Fiscal
Mill
Assessed
Total
Including
Percentage
Delinquent
Percentage of
Year
Levy
Valuation(-)
Tax Levy
Delinquent
of Levy
Tax Collections
Total Levy
1973
16.75
$136,560,322
$2,287,385
$2,268,443
99.17%
$ 18,942
.83%
1974
16.75
146,407,679
2,452,328
2,418,143
98.61
34,185
1.40
1975
16.75
157,455,131
2,637,373
2,614,565
99.14
22,808
.86
1976
19.75
167,429,450
3,306,731
3,271,151
98.92
35,580
1.06
1977
18.00
191,764,850
3,451,767
3,414,538
98.92
37,229
1.08
1978
18.00
202,467,870
3,644,421
3,588,128
98.46
56,293
1.54
1979
18.00
212,601,570
3,826,828
3,780,114
98.78
46,714
1.22
1980
18.00
249,389,830
4,489,117
4,407,010
98.17
82,107
1.82
1981
18.00
264,438,910
4,758,640
4,673,809
98.22
84,831
1.78
1982
18.00
263,193,020
4,737,474
4,663,584
98.44
73,890
1.56
1983
18.00
264,876,490
4,767,776
4,727,627
99.16
40,450
.85
1984
18.00
272,134,020
4,898,412
N/A
N/A
N/A
N/A
( 1 ) Assessed values are for the years in which taxes are collected.
-12-
Largest Taxpayers
The following table, based on information provided by
the Pueblo County Treasurer, lists the ten largest taxpayers
in the City in 1983:
Name Assessed Value
Mountain States Tel. & Tel. Co. $15,122,300
(Mountain Bell)
Central Tel. & Utilities Corp. 7,003,600
(Southern Colorado Power)
Public Service Co. of Colo. 2,978,220
Pueblo Mall Limited Partnership 2,311,120
Rockwool Industries 1,239,140
Denver U.S. Bank Corporation, Inc. 1,236,680
Mercantile Properties 868,500
PC II Mart Ltd. 640,830
Colorado National Bank- Pueblo 472,370
Pueblo Beef Products 291,910
Total $ 32,164,670
THE BONDS
General Description
The Bonds will be dated as of the June 1 or December 1
next preceding their date of issue, or, if issued on a June
1 or December 1, as of such date; provided, however, that
any Bonds issued prior to December 1, 1984 shall be dated as
of June 1, 1984. If interest on the Bonds is in default,
Bonds issued in exchange for Bonds surrendered for transfer
or exchange will be dated as of the date to which interest
has been paid in full on the Bonds surrendered.
The Bonds are issuable solely in the form of fully
registered bonds in the denomination of $5,000 or any
integral multiple thereof, will mature and bear interest
from their date at the rates of interest specified on the
cover page of this Official Statement. The principal of and
premium, if any, on the Bonds will be payable at the princi-
pal office of in
Colorado, as Paying Agent. Interest on the Bonds,
payable on June 1 and December 1 of each year, commencing on
December 1, 1984, is payable to the registered owner thereof
as of the Record Date (15 days prior to any interest payment
date) by check or draft of the Paying Agent mailed to the
registered owner of each Bond.
-13-
r =df iYi:
If upon presentation at maturity, payment of any Bond
is not made as provided in the Ordinance, interest shall
continue thereon at the interest rate designated in such
Bond until the principal thereof is paid in full.
In the event any bond is mutilated, lost, stolen or
destroyed, the City may execute a new bond of like series,
date, maturity and denomination as that mutilated, lost,
stolen or destroyed; provided that the City shall have
received indemnity satisfactory to it and provided further
in the case of any mutilated bond, such mutilated bond shall
first be surrendered to the City, and in the case of any
lost, stolen or destroyed bond, there shall be first
furnished to the City evidence of such loss, theft or
destruction satisfactory to the City. In the event any such
bond shall have matured, instead of issuing a duplicate
bond, the City may pay the same without surrender thereof.
The City may charge the holder of such bond with its
reasonable fees and expenses (including printing) in
connection with the foregoing.
Optional Redemption
The Series 1984 Bonds maturing prior to December 1,
19 are noncallable for redemption prior to maturity.
Series 1984 Bonds maturing on December 1, 19 and
thereafter are subject to redemption at the option of the
City, on December 1, 19 , and on any interest payment date
thereafter, in whole or in part in inverse order of maturity
(by lot within a maturity in the manner designated by the
Paying Agent) at a price equal to the principal amount
thereof plus accrued interest thereon to the redemption
date, plus a premium as set forth below:
Series 1984 Bonds
Redemption Date (Dates Inclusive) Premium (if an
December 1, 19 through November 30, 19
December 1, 19 through November 30, 19
December 1, 19 and thereafter No Premium
The Series 1984 Refunding Bonds maturing on or before
December 1, 19 are noncallable for redemption prior to
maturity. Series 1984 Refunding Bonds maturing on December
1, 19 and thereafter shall be redeemable at the option of
the City, in whole or in part, and if in part, in inverse
order of maturities and by lot within a maturity in the
manner designated by the Paying Agent, on December 1, 19 ,
and on any interest payment date thereafter, at a redemption
price (expressed as a percentage of principal amount), plus
-14-
accrued interest thereon to the redemption date as set forth
below:
Series 1984 Refunding Bonds
Redemption Dates Redemption
(Dates Inclusive) Price
December 1, 19 through November 30, 19
December 1, 19 through November 30, 19
December 1, 19 and thereafter
Notice and Effect of Redemption
Notice of any redemption of Bonds shall be given by the
Paying Agent in the name of the City by sending a copy of
such notice by certified or registered first - class, postage
prepaid mail, at least thirty (30) days prior to the
redemption date, to the registered owners of each of the
Bonds being redeemed. Such notice shall specify the number
or numbers of the Bonds or portion thereof so to be redeemed
and the redemption date. The portion of any Bond to be
redeemed shall be in the principal amount of $5,000, or any
integral multiple thereof, and in selecting Bonds for
redemption, the Paying Agent shall treat each Bond as
representing that number of Bonds which is obtained by
dividing the principal amount of that Bond by $5,000. If
any of the Bonds shall have been duly called for redemption
and if on or before the redemption date there shall have
been deposited with the Paying Agent in the Bond Fund
sufficient moneys to pay the redemption price of such Bonds
at the redemption date, then said Bonds shall become due and
payable at such redemption date, and from and after such
date interest will cease to accrue thereon. Any Bonds
redeemed prior to their maturity by call for prior
redemption or otherwise shall not be reissued and shall be
cancelled the same as Bonds paid at or after maturity.
No further interest shall accrue on the principal of
any Bond called for redemption after the redemption date if
notice thereof has been given in accordance with the
Ordinance and funds sufficient for such redemption are
available therefor.
Transfer and Exchanae of Bonds
Bonds may be transferred or exchanged by the registered
owner thereof upon payment of cost, any tax or governmental
charge required to be paid with respect to such transfer or
exchange, at the principal corporate trust office of the
Paying Agent. Bonds may be exchanged for a like aggregate
-15-
principal amount of Bonds of other authorized denominations
of the same type and maturity. Upon surrender for transfer
of any Bond, duly endorsed for transfer or accompanied by an
assignment duly executed by the registered owner of such
Bond or his attorneys duly authorized in writing, the City
shall execute and the Paying Agent shall authenticate and
deliver in the name of the transferee or transferees a new
Bond or Bonds for a like aggregate principal amount. The
person in whose name any Bond shall be registered shall be
deemed and regarded as the absolute owner thereof for all
purposes. Notwithstanding any of the above, the City and the
Paying Agent shall not be required (a) to issue, register,
transfer or exchange any Bond during a period beginning at
the opening of business on the Record Date and ending at the
close of business on the interest payment date or day on
which the applicable notice of redemption is given or (b) to
register, transfer or exchange any Bond selected or called
for redemption in whole or in part.
Additional Bonds
Additional general obligation bonds payable from
general property tax proceeds may be issued by the City upon
a favorable vote of the qualified electors thereof, except
that general obligation bonds for the acquisition, extension
or improvement of water or the municipal waterworks system
are not required to be approved by such favorable vote.
THE CITY
General
The City was incorporated in 1885 and is one of the
original home rule cities under the Constitution of
Colorado. It is an incorporated municipality, a body
politic and corporate, existing under the laws of Colorado.
Because the City is a "home rule" city, the City's Charter
governs all local and municipal matters. State law applies
to matters of local or municipal concern only to the extent
not superseded by the Charter or ordinances of the City.
The Constitution of Colorado reserves to the City certain
powers, including the power to issue, refund and liquidate
all kinds of municipal obligations and the power to assess
property in the City, and to levy and collect taxes on such
property, for municipal purposes.
City Council
The governing body of the City consists of the seven
members of the City Council. Four of these members of the
City Council are elected by district and three are elected
-16-
from the City at large. The members of the City Council are
elected for staggered four -year terms at the general
municipal election held November in odd numbered years. The
members of the City Council elect the President of the City
Council, who is the presiding officer and is recognized as
head of the City government for ceremonial purposes. The
President of the City Council votes like other members of
the City Council, has no veto power, and has no special
administrative duties. The President and members of the
City Council, the date of expiration of their current terms,
and their principal occupations are, respectively, as
follows:
All legislative powers of the City are held by the City
Council except as provided in the Charter. The affirmative
vote of four members of the City Council is required for the
adoption of any ordinance. The Charter provides for voter
referendum and initiative, pursuant to which voters can
require the City Council to submit ordinances to the voters
at special or general city elections.
The City Council appoints all boards and commissions,
unless otherwise required by law, and it appoints the City
Manager. The City Manager is the executive head of the
government of the City and is responsible for the
enforcement of the City's laws and ordinances. The City
Manager also administers the operation of all the
-17-
Expiration
Member
of Term
Occupation
Michael G. Salardino
12/31/85
Advertising, KOAA -TV
(President)
Michael Occhiato
12/31/85
Board Member, Royal Crown Hires
Bottling Co., Denver, CO
Douglas L. Ring
12/31/85
Real Estate Salesman, Coldwell
Banker Apple, Inc.
Kenneth F. Hunter
12/31/87
Vice President, Pueblo Bank &
Trust
Paul Jones
12/31/87
CEO, Martec Corp.
Reimar von Kalben
12/31/87
Owner, Allied Refrigeration &
Electric
Allyn Middelkamp
12/31/87
Owner, Middelkamp Ambulance
Service
All legislative powers of the City are held by the City
Council except as provided in the Charter. The affirmative
vote of four members of the City Council is required for the
adoption of any ordinance. The Charter provides for voter
referendum and initiative, pursuant to which voters can
require the City Council to submit ordinances to the voters
at special or general city elections.
The City Council appoints all boards and commissions,
unless otherwise required by law, and it appoints the City
Manager. The City Manager is the executive head of the
government of the City and is responsible for the
enforcement of the City's laws and ordinances. The City
Manager also administers the operation of all the
-17-
departments and divisions of the City, including the
Finance, Public Safety, Parks and Recreation, Personnel,
Public Works, Purchasing and Transportation Departments.
The City Manager has the authority to appoint directors of
all departments of the City, including the City Attorney.
City Employees
The City has a total of approximately 672 full -time
employees. Three unions represent City employees. The
National Association of Government Employees Local R9 -45
represents over 200 City employees. Approximately 140
employees are represented by the International Brotherhood
of Firefighters. The International Brotherhood of Police
Officers Local 537 represents about 170 employees.
Contracts which expire at the end of 1985 covering all of
the City's unionized employees currently are in effect. The
current contracts with the City's employees were negotiated
in 1983 for a term of two years; however, each of the
contracts provides that salaries and certain benefits are
negotiated annually, within the general terms of the
respective contracts.
The City, through a wholly -owned corporation, employs
approximately 40 municipal transit workers who are
represented by the Amalgamated Transit Workers Local 683.
The transit workers are also working pursuant to a two -year
contract which expires at the end of 1985.
The City considers its employee relations to be
satisfactory.
Retirement Plans
All employees of the City, other than employees of the
fire and police departments, participate in the Municipal
Division of the State of Colorado Public Employees'
Retirement Association ( "PERA "). The City currently is
required to contribute to PERA an amount equal to 10.20% of
salary of all covered employees, and each covered employee
is required to contribute 8.0% of salary. Benefits include
an annuity, payable by PERA upon an employee's retirement,
equal to 2 -1/2% of final average salary (the average of the
highest three consecutive years) per year of service for the
first 20 years of service and an additional 1% of final
average salary per year of service for the next 20 years,
with a maximum annual annuity of 70% of final average
salary. Disability and death benefits also are provided.
According to the 1983 Statistical Supplement to the Annual
Report of the Public Employees' Retirement Association of
Colorado (the "Supplement "), the Municipal Division of the
c■
Fund had an unfunded accrued service liability of
$52,342,744 as of December 31, 1982. Colorado statutes
require the unfunded accrued service liability to be
amortizable over a period not exceeding 60 years, and the
unfunded accrued service liability for the Municipal
Division is reported to be amortizable over approximately a
35 -year period, based on current contribution levels and the
actuarial assumptions set forth in the Supplement. The
Municipal Division, which includes municipal employees
throughout Colorado except police, fire and school employees
and judges, had 6,206 active members and 974 annuitants as
of December 31, 1982. The actuarial assumptions stated in
the Supplement include the following: a 7% investment return
rate, compounded annually; eligiblity for special early
reduced pension retirement at age 55 with 20 or more years
of service, and age 60 with 5 or more years of service; and
an increase in payroll for active members at the minimum
rate of 5.5% per year. The "entry age normal cost" method
of valuation is used in determining liabilities and normal
cost. An actuarial report for PERA is prepared annually.
The City is affiliated with the State Fire and Police
Pension Association ( "FPPA ") which was created in 1979 as a
result of enactment of Senate Bill 79 by the General
Assembly. Fulltime firefighters and police officers hired
on or after January 1, 1980 (approximately 47 of the City's
police and firefighters), and electing employees hired
before January 1, 1980, are entitled to the normal
retirement benefits administered by FPPA. Benefits are
calculated as 2% of the average of the employee's highest
three year's salary per year of service (up to a maximum of
25 years) . Disability retirement and survivor benefits are
provided to all full -time firefighters and police officers.
Currently employees and employers are each required to
contribute 8% of salary to FPPA. The FPPA plans are
required to be actuarially valued annually, and the rates of
contributions may be adjusted based upon the needs of the
plans to reach actuarial soundness, as long as employee
contributions do not exceed employer contributions. The
actuarial present value of death and disability benefits was
calculated to be $22,073,760 as of January 1, 1983 by A.S.
Hansen, Inc., based upon certain actuarial assumptions,
including an investment return of 7.5 %, life expectancy of
participants based on the 1971 Group Annuity Mortality Table
(modified for police and fire experience), an assumed
average retirement age of 52, and rate of disablement based
on actual experience. The actuarial present value of both
vested and nonvested retirement plan benefits was not
calculated as of January 1, 1983 but according to the
calculations would not exceed $641,213, the total amount of
employee contributions at that date. Based on the actuarial
-19-
assumptions used in the valuation, the employer and employee
contributions are expected to fully fund all benefits for
fire and police employees hired on or after April 7, 1978.
The unfunded liability for employees hired before that date
would be funded and amortized over 40 years. The State of
Colorado is authorized to contribute $20,000,000 annually to
a fund designated to assist in the payment of death and
disability benefits and the amortization of the accrued
unfunded liabilities of the police and firefighers' pension
plans throughout Colorado. In 1981, approximately $900,000
was distributed to volunteer firefighter pension plans, and
approximately $13,100,000 was contributed to fire and police
pension funds for funding of unfunded liabilities with
respect to employees hired before January 1, 1980. The
balance of $6,000,000 was contributed to FPPA to fund death
and disability benefits.
The City's firefighters and police who were hired
before April 8, 1978 (approximately 119 firefighters and 150
police) are covered by the City's Fire Pension Fund and
Police Pension Fund, respectively. Based upon the actuarial
valuation reports dated January 1, 1982 prepared by A.S.
Hansen, Inc., the unfunded accrued liability for the Fire
Pension Fund was $19,207,422, and for the Police Pension
Fund, it was $7,132,332. The actuarial assumptions selected
included a 7 -1/2% per year (compounded annually) interest
rate; retirement at age 50 with 20 years of service for
firefighters and at age 55 with 25 years of service for
police; graduated disability rates; and mortality rates
based upon the 1971 Group Annuity Mortality Table (modified
for police and fire experience). Assets were valued at
market value. The "entry age normal cost" funding method
(which involves the calculation of current funding
requirements and past service funding requirements) was
used. The 1981 annual payment required to amortize unfunded
accrued liability over 40 years from January 1, 1980 was
calculated to be required to amortize unfunded accrued
liability over 40 years from January 1, 1980 was calculated
to be $1,900,424 (or 70.059% of salary) for the Fire Pension
Fund and $927,345 (or 28.227% of salary) for the Police
Pension Fund. In order to reduce the requirement payments
from these amounts, the City adopted a hardship resolution
pursuant to the Colorado Policemen's and Firemen's Pension
Reform Act. For 1984, the City expects to contribute 16.72%
of police salaries and 25.397% of firefighter salaries to
these funds with the employees contributing 8.0% of salary.
The statute creating the FPPA restricts the use of the
$20,000,000 annual State contribution for the amortization
of unfunded liability accrued for full rank escalation
benefits, if continued by affiliated plans, with respect to
-20-
employment after January 1, 1980. "Rank escalation" is
defined by the statute as the addition to the retirement
pension or disability benefit of an amount equal to a fixed
percentage of any salary increase, as well as longevity or
additional pay based on length of service, granted the rank
a member occupied prior to retirement or disability. The
City elected to continue rank escalation for fire employees
hired prior to April 8, 1978 who retire in 1980, but the
City has taken no further action with respect to the
continuation or termination of rank escalation benefits for
other employees hired before April 8, 1978. The statute
does not impose specific requirements for the amortization
of accrued unfunded liability for rank escalation benefits,
and the City presently is not making payments to amortize
the unfunded liability accrued for full rank escalation
benefits. Based upon the actuarial valuation reports dated
January 1, 1980 prepared by A.S. Hansen, Inc. the unfunded
accrued liability, taking full rank escalation into account,
was $19,399,899 for the Fire Pension Fund and $7,365,543 for
the Police Pension Fund. These amounts exceeded the
actuarial valuations for unfunded accrued liabilities
calculated without taking full rank escalation into account
by $192,477 for the Fire Pension Fund and by $233,211 for
the Police Pension Fund.
The following table presents information for the years
indicated on these four pension plans affecting the City's
employees:
PERA
Number of
Employees Covered
Employer Contribu-
tion Rate
Actual Employer
Contributions
FFPA
Number of
Employees Covered
Employer Contribu-
tion Rate
Actual Employer
Contributions
1983 1982 1 1980 1979 1978 1977
356 387 433 443 428 439 415
10.20% 10.20% 10.20% 9.86% 9.86% 9.86% 9.86%
$666,634 $649,884 $630,649 $579,519 $537,747 $487,563 $444,053
47 45 49 42 (1) (1) (1)
8.0% 8.0% 8.0% 8.0% (1) (1) (1)
$ 74,032 $ 69,578 $ 54,360 S 51,265 (1) (1) (1)
Fire Pension Fund
Number of
Employees Covered 119 124 143
Employer Contribu-
tion Rate 25.397% 25.397% 11.70%
Actual Employer
Contributions $702,462 $717,057 $321,560
Police Pension Fund
Number of
Employees Covered 150 151 152
Employer Contribu-
tion Rate 16.72% 16.72% 16.72%
Actual Employer
Contributions $606,861 $574,931 $542,818
(1) The FFPA did not begin operation until 1980.
156 158 160 154
18.97% 27.15% 17.99% 14.54%
$559,757 $750,000 $450,000 $315,000
184
12.44%
$427,745
_7l-
186 183 189
18.50% 19.85% 21.70%
$594,084 $592,264 $554,533
Municipal Services
The City provides its citizens with fire and police
protection, streets and highways, public works and improve-
ments, parks and recreation services, health and sanitation
services, social services, planning and zoning and general
administrative services. Water services are provided by the
Board of Water Works of the City. Gas and electric services
in the City are provided by private companies.
The City owns and operates Pueblo Memorial Airport and
a separately incorporated bus company providing services
within the City. The airport facility currently is operated
on a self - sustaining basis, and the City expects
continuation of operation on this basis. The bus company
operations are subsidized by the City and the federal
government, with subsidies from the City's general fund and
the federal government expected to be $489,712 each for 1984.
Citv Revenues
The following table sets forth the sources of the
City's general revenues for the periods indicated:
Year
Taxes(1)
Licenses
and
Permits(2)
Intergov-
ernmental
Transfers(31
Charge for
Services(4)
Fines and
Forfe(ts(5)
Highway
Users(6)
Other(7)
Totals
1971
$ 5,842,099
$251,614
$171,622
$278,847
$148,572
$ 898,478
$ 96,815
$ 7,688,047
1972
7,736,549
273,082
180,374
300,462
366,431
826,521
76,990
9,760,409
1973
9,070,141
311,157
244,910
330,750
369,013
844,513
225,701
11,396,185
1974
10,023,829
343,532
300,362
387,806
265,037
915,000
250,735
12,486,301
1975
10,910,822
294,438
387,174
405,314
262,670
945,000
177,334
13,382,752
1976
12,864,551
302,454
411,821
375,568
240,568
1,185,000
259,339
15,639,301
1977
15,188,937
321,115
432,189
394,779
249,942
1,277,480
409,548
18,273,990
1978
16,475,631
379,027
531,848
306,364
266,512
1,276,076
637,368
19,872,826
1979
17,928,455
390,215
574,565
335,381
299,927
1,440,998
926,541
21,896,082
1980
18,438,965
236,844
587,416
346,932
422,049
2,078,327
1,151,301
23,306,834
1981
19,377,323
290,929
623,282
323,879
537,594
1,768,032
1,429,315
24,350,354
1982
19,503,570
188,641
584,366
329,561
416,894
1,742,114
1,733,494
24,498,640
1983
20,110,274
97,577
611,395
163,331
307,493
1,868,871
1,544,664
24,703,605
1984(8)
5,554,097
32,233
210,993
31,427
90,158
433,757
102,101
6,454,766
(1) Includes property taxes, cigarette and tobacco taxes, sales and use taxes and
franchise taxes.
(2) Includes health licenses, professional and occupational licenses, amusement
licenses, building permits and miscellaneous other licenses and permits.
(3) Includes alcoholic beverage taxes and motor vehicle taxes collected by the State
of Colorado, the County of Pueblo's portion of the costs of maintaining a
sanitary landfill and animal shelter and miscellaneous other intergovernmental
transfers.
(4) Includes revenues from sales of building code books, codification books and
traffic ordinance books, witness fees, zoning and rezoning variances, xerox
copies and miscellaneous other sources.
(5) Principally from municipal court.
(6) Collected and distributed by the State of Colorado.
(7) Includes interest earned on City funds, rentals, sale of trees, discounts earned
and miscellaneous other sources.
(8) The numbers set forth for 1984 are unaudited totals for the first quarter of
1984.
-22-
The following table provides a breakdown by type of tax
for the City's tax revenues for the years indicated:
Calendar
Year
Property
Taxes
Sales and
Use Taxes
Franchise
Taxes
Tobacco
Taxes
Total
Taxes
1971
$2,246,847
$ 3,089,119
$ 380,225
$125,908
$ 5,842,099
1972
2,187,771
4,991,285
426,970
130,523
7,736,549
1973
2,260,159
6,017,049
527,452
265,481
9,070,141
1974
2,409,804
6,531,058
522,690
560,277
10,023,829
1975
2,604,710
7,150,531
586,370
569,211
10,910,822
1976
3,265,461
8,266,929
738,191
593,970
12,864,551
1977
3,405,940
9,570,911
1,630,734
581,352
15,188,937
1978
3,580,537
11,153,351
1,163,332
578,411
16,475,631
1979
3,771,192
12,225,372
1,363,909
567,982
17,928,455
1980
4,401,090
11,944,532
1,496,467
596,876
18,438,965
1981
4,229,107
12,908,246
1,648,309
591,661
19,377,323
1982
4,210,614
13,027,557
1,733,448
531,951
19,503,570
1983
4,272,393
13,314,608
2,057,295
465,978
20,110,274
1984*
1,003,219
3,665,852
775,387
109,639
5,554,097
*The numbers set forth are unaudited totals for the first quarter of
1984.
Summary of Operations
The following table
sets forth
a summary of
revenues
and expenditures for
the City's
general
fund for
the five
year period ended December
31, 1983:
1983
1982
1981
1980
1979
Revenues
Taxes
$20,110,274
19,503,570
19,377,323
18,025,563
17,575,535
Licenses & Permits
97,577
188,641
290,929
236,844
390,215
Revenue from other Agencies
611,395
584,366
623,282
587,416
574,565
Charges for Services
163,331
329,561
323,879
346,932
335,381
Fines & Forfeits
307,493
416,894
537,594
422,049
299,927
Interest Income
1,183,203
1,589,511
1,252,040
856,986
709,382
Miscellaneous
361,461
143,983
177,275
294,315
217,159
Total Revenues
22,834,734
22,756,526
22,582,322
20,770,105
20,102,164
Expenditures
Current
General Government
2,155,024
1,734,213
1,811,896
1,460,919
1,459,339
Public Safety
11,556,718
11,714,095
10,743,237
9,947,176
9,887,458
Parks & Recreation
2,155,722
2,441,814
2,518,969
2,282,702
2,283,573
Transportation
1,865,395
1,394,894
1,386,844
1,174,274
1,187,036
Public Works
3,394,823
3,495,091
3,243,965
3,063,064
3,059,987
Insurance & contingencies
558,432
466,006
263,751
343,521
612,134
Intergovernmental
1,441,157
705,446
1,608,649
1,129,896
1,045,121
Capital Outlay
503,567
868,613
452,719
660,233
Reimbursement to other funds
Total Expenditures
23,630,838
22,820,172
22,024,030
20,061,785
19,534,648
Excess (Deficiency) of revenues
over expenditures
( 796,104)
( 63,646)
558,292
708,320
567,516
Other financing sources
Operating transfers in
4,483,373
3,274,548
3,096,396
2,741,053
2,994,836
Operating transfers out
( 7,301,163)
(2,364,378)
(1,993,180)
(2,327,251)
(2,691,531)
Total other financing
sources
( 2,817,790)
910,170
1,103,216
413,802
303,305
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER EXPEND-
ITURES AND OTHER USES
( 3,613,894)
846,524
1,661,508
1,122,122
870,821
Balance, January 1
9,855,868
9,185,746
7,524,238
6,398,744
5,523,927
Balance, December 31
$ 6,241,974
10,032,270
9,185,746
7,500,866
6,398,748
-23-
21
City Budget
The Charter requires the City Manager to submit to the
City Council an annual or current expense budget for the
ensuing fiscal year and a capital budget not later than the
first regular meeting of the City Council in October of each
year. The annual budget is required to contain an estimate
of all anticipated revenues and the estimated expenditures
necessary for the operation of the City's departments,
offices and agencies. It is also required to include an
estimate of the general fund surplus or deficit, debt
service requirements and an estimate of the sum required to
be raised by tax levy for the ensuing fiscal year. After
public hearing, the City Council may adopt the budget
without change or may amend the budget by adding new items
of expenditure or by increasing, decreasing or removing
items of expenditure, except that the City Council may not
reduce any item of appropriation for debt service. The
Charter directs the City Council in adopting the budget to
estimate the amount of money necessary to be raised by tax
levy, taking into account total proposed expenditures and
estimated revenues. Prior to December lst of each year, the
City Council is required to adopt the budget, an
appropriation ordinance and the tax levy ordinance. For a
description of the process by which property is assessed and
ad valorem taxes are levied and collected, see "ASSESSMENTS,
LEVIES AND COLLECTION."
Capital Improvements
The City annually budgets and expends funds on capital
improvements for street construction, replacement and
addition of traffic control devices, improvements and
acquisitions of recreational facilities, and other similar
improvements. Capital improvements ordinarily are funded
from the City's general funds. The City estimates that
expenditures for such capital improvements will be
approximately $2.34 million in 1984. In addition, the City
intends to provide certain improvements in connection with
the establishment of a facility for Sperry Corporation in
the vicinity of the City, the cost of which improvements is
estimated to be $6.15 million. See "PUEBLO DEMOGRAPHICS --
Sperry Corporation."
DEBT SERVICE SCHEDULE
The following table sets forth the debt service
requirements on the Bonds.
-24-
The Series 1984 Bonds The Series 1984 Refunding Bonds Periodic Annual Payment
Date Principal(l) Interest (l) Principal(l) Interest (l) Payment December 31 )(1
12/01/84
--
$209,838.98
$ --
$207,330.50
$ 417,169.48
$ 417,169.48
06/1/85
--
226,173.75
--
223,470.00
449,643.75
12/1/85
--
226,173.75
--
223,470.00
449,643.75
899,287.50
06/1/86
--
226,173.75
--
223,470.00
449,643.75
12/1/86
125,000
226,173.75
--
223,470.00
574,643.75
1,024,287.50
06/1/87
--
222,111.25
--
223,470.00
445,581.25
12/1/87
135,000
222,111.25
--
223,470.00
580,581.25
1,026,162.50
06/1/88
--
217,386.25
--
223;470.00
440,856.25
12/1/88
145,000
217,386.25
--
223,470.00
585,856.25
1,026,715.50
06/1/89
--
211,948.75
--
223,470.00
435,418.75
12/1/89
155,000
211,948.75
--
223,470.00
590,418.75
1,025,837.50
06/1/90
--
205,942.50
--
223,470.00
429,412.50
12/1/90
165,000
205,942.50
--
223,470.00
594,412.50
1,023,825.00
06/1/91
--
199,342.50
--
223,470.00
422,812.50
12/1/91
180,000
199,342.50
--
223,470.00
602,812.50
1,025,625.00
06/1/92
--
191,917.50
--
223,470.00
415,387.50
12/1/92
195,000
191,917.50
--
223,470.00
610,387.50
1,025,775.00
06/1/93
--
183,630.00
--
223,470.00
407,100.00
12/1/93
210,000
183,630.00
--
223,470.00
617,100.00
1,024,200.00
06/1/94
--
174,442.50
--
223,470.00
397,912.50
12/1/94
450,000
174,442.50
--
223,470.00
847,912.50
1,245,825.00
06/1/95
--
154,192.50
--
223,470.00
377,662.50
12/1/95
490,000
154,192.50
--
223,470.00
867,662.50
1,245,325.00
06/1/96
--
131,652.50
--
223,470.00
355,122.50
12/1/96
540,000
131,652.50
--
223,470.00
895,122.50
1,250,245.00
06/1/97
--
106,272.50
--
223,470.00
329,742.50
12/1/97
590,000
106,272.50
--
223,470.00
919,742.50
1,249,485.00
06/1/98
--
78,247.50
--
223,470.00
301,717.50
12/1/98
645,000
78,247.50
--
223,470.00
946,717.50
1,248,435.00
06/1/99
--
47,287.50
--
223,470.00
270,757.50
12/1/99
705,000
47,287.50
--
223,470.00
975,757.50
1,246,515.00
06/1/00
--
13,095.00
--
223,470.00
236,565.00
1211100
270,000
13,095.00
505,000
223,470.00
788,095.00
1,024,660.00
06/1/01
--
--
--
198,725.00
198,725.00
1211101
--
--
850,000
198,725.00
1,048,725.00
1,247,450.00
06/1/02
--
--
--
156,650.00
156,650.00
1211102
--
--
935,000
156,650.00
1,091,650.00
1,248,300.00
6/01/03
--
--
--
109,900.00
109,900.00
12/1/03
--
--
1,030,000
109,900.00
1,139,900.00
1,249,800.00
06/1/04
--
--
--
57,885.00
57,885.00
12/1/04
--
--
1,135,000
57,885.00
1,192,885.00
1,250,770.00
Totals
(1) Preliminary; subject to change.
-25-
PROPOSED ADDITIONAL FINANCINGS
The City may issue its sewer revenue bonds in the ap-
proximate aggregate principal amount of $17,000,000 during
1984. If such bonds are issued, the proceeds of the pro-
posed bond issue would be used to finance the City's portion
of the cost of construction of a new sewer treatment plant.
It is intended that the remaining portion of the cost of
construction would be paid by obtaining United States
government grant. It is intended that principal of and
interest on the proposed bonds would be paid from revenues
of the City's sewer system.
Except as set forth above, the City does not anticipate
any additional financings in 1984.
PUEBLO DEMOGRAPHICS
Population
The population of the City for 1983 was estimated by
the Pueblo Area Council of Governments, Regional Planning
Division, to be 100,117. This compares to a population of
97,774 in the 1970 Census, and a peak estimated population
of 105,312 in 1975 and a 1980 census of 101,686. As of
December 31, 1982, the median age of the City was estimated
to be 31.2 years; as of the same date, the median age for
the State of Colorado was estimated to be 29.6 years. The
median household effective buying income for the City was
estimated to be $18,200 as of December 31, 1982; the median
household effective buying income for the State of Colorado
as of the same date was estimated to be $22, 589.
Employment
The average annual unemployment in the Pueblo Standard
Metropolitan Statistical Area ( "SMSA ") and the State of
Colorado for the past nine years is as follows, according to
data gathered from the Colorado Division of Employment and
Training, Research and Development Section:
Year
Pueblo SMSA
Colorado
1984*
10.2%
5.2%
1983
14.4%
7.4%
1982
16.1%
7.7%
1981
9.9%
6.3%
1980
10.3%
5.9%
1979
7.5%
4.8%
1978
8.7%
5.5%
1977
9.5%
6.2%
1976
7.4%
5.9%
1975
7.6%
6.9%
*Figure is seasonally adjusted as of February 29.
-26-
The major employers in the Pueblo area are:
Employer Employees
CF &I Steel (Manufacturing) ........................... 2,400
School District No. 60 (Local Government) ............ 1,921
Colorado State Hospital (State Government) ........... 1,370
St. Mary- Corwin Hospital ............................. 1,333
Parkview Episcopal Hospital .......................... 995
Pueblo Army Depot (Federal Government) ............... 800
University of Southern Colorado (State Government) ... 604
School District No. 70 ............................... 575
Dana Corp., Perfect Circle Division (Manufacturing) .. 300
PepsiCola ............ ............................... 257
Mountain Bell ......... ............................... 200
U.S. Department of Transportation Test Center
(Federal Government) ............................... 200
Broderick & Gibbons ... ............................... 193
Pueblo Community College ............................. 168
Source: Pueblo Chamber of Commerce.
CF &I Steel Corporation
CF &I Steel Corporation ( "CF &I ") has historically been a
major employer in the area. However, the percentage of
total employment represented by CF &I has declined from
approximately 16% in 1970 to approximately 12% in 1980 to
approximately 5% at the present time. There have been no
significant reductions in CF &I's work force within the last
18 months. The population of the City has declined from
approximately 101,500 in 1980 to approximately 100,117 at
present, reflecting some degree of emigration which is
attributable at least in part to CF &I's reduction in
operations. It appears that CF &I has retained in operation
the most modern portions of its overall operations,
including its rail and tubing production facilities.
During the period from 1971 to 1982, which includes the
period of greatest employment decline at CF &I, there were
indications that the economy of the area was able to adjust
to the decline. City government expenditures increased
between 1973 and 1982 from $11,384,353 to $25,184,550, an
increase of 121 %. Sales and use tax collections increased
between 1972 and 1982 from $4,991,285 to $13,027,557, an
increase of 261 %. Assessed value of real estate within the
City has increased from $136,560,322 in 1972 to $264,876,490
in 1982, an increase of 94 %. Estimated true value of real
estate within the City has increased from $511,168,342 in
1972 to $1, 042, 756, 183 in 1982, an increase of 103 %.
-27-
At the present time, no one employer accounts for more
than 5% of the area's employment.
Sperry Corporation
On March 9, 1984, representatives of Sperry Corporation
( "Sperry ") announced publicly that Sperry intends to build a
computer design and development facility in the immediate
vicinity of the City. The facility, expected to cost
approximately $27 million to construct and equip, is to be
located on a 26 -acre site in the City's proposed industrial
park development adjacent to the City's airport; in
addition, Sperry will take an option on an additional 22
acres adjoining the site for possible future expansion. The
facilitv to be constructed is expected to be approximately
160,000 to 170,000 square feet in size and, assuming
construction begins in late April or May 1984, should be
completed by approximately April 1985. At full capacity,
the facility is expected to employ between 750 and 1,000
persons, including design engineers, research technicians
and assembly line workers, at an estimated annual payroll of
approximately $20 million. Sperry has announced that it
intends to bring to the facility from other facilities
between 50 and 100 employees, and that it expects to hire
locally the balance of employees needed to staff the
facility. Representatives of Sperry have indicated that the
facility will design and develop a variety of computers
pursuant to contracts between Sperry and the Department of
Defense.
Sperry, a Delaware corporation is engaged primarily in
the development, manufacturing and marketing of products in
the following industry segments: computer systems and
equipment; guidance and control equipment; farm equipment;
and fluid power equipment. Sperry occupies 123 major
facilities in the United States, 86 major facilities outside
the U.S. and has 16 wholly -owned foreign subsidiaries. It
is ranked 57th in Fortune 500 companies. Sperry has total
revenues of approximately $5 billion and net income of
approximately $118 million in 1983. Its defense - related
business accounts for approximately 20% of total corporate
revenues and it is one of the top fifteen suppliers of
defense - related products to the United States.
The City has agreed to provide certain incentives to
Sperry in the establishment of the facility, among which are
the sale of land owned by the City to Sperry for nominal
consideration, the waiver of certain utility hook -up fees
and the City's financing of various on- and off -site
improvements such as landscaping, access roads, water and
sewer lines, general site development and building
construction. The cost to the City of such incentives is
estimated to be approximately $6.15 million.
The City has 23 elementary schools, 6 middle high
schools and 4 senior high schools. Enrollment in School
District #60 (Pueblo) for the previous five years was as
follows:
1983 ....................
19,086
1982 ....................
19,155
1981 ....................
20,133
1980 ....................
20,592
1979 ....................
21,209
Also located within the City is the University of
Southern Colorado and Pueblo Community College. In addition
to those institutions, the City has business, technical and
trade schools.
Miscellaneous
The following table provides certain economic and
demographic data for the City compiled by the Pueblo Area
Council of Governments and the Colorado Department of
Revenue.
Building
Year Permits
Retail Sales
Postal
Receipts
1973
$16,758,910
$ 555,949,819
2,457,902
1974
25,371,226
686,877,803
2,818,465
1975
26,043,721
771,936,922
2,788,107
1976
21,860,260
836,379,971
3,588,688
1977
42,158,496
900,374,525
3,633,349
1978
37,461,419
990,537,134
3,840,773
1979
32,667,896
1,158,737,559
4,095,031
1980
14,791,133
1,187,691,753
4,283,960
1981
21,765,381
1,320,414,827
4,919,345
1982
6,081,558
1,033,388,966
4,796,155
1983
14,378,748
707,682,955*
5,015,677
*Figure as of September 30.
THE ORDINANCE
The City has adopted an ordinance (the "Ordinance ")
which authorizes the issuance of the Bonds for the purpose
of providing the funds to defray the cost of (i) improving
and extending the City's storm sewer system, and (ii)
refunding the Refunded Bonds. See "USE OF PROCEEDS." The
Ordinance also appoints a registrar and paying agent for the
WOZ
.1mMulaii
Bonds, approves a form of bond, pledges the City's general
ad valorem tax revenues to the payment of the Bonds, and
makes certain other provisions with regard to the Bonds and
the payment of the principal of, premium, if any, and
interest on the Bonds.
The Ordinance, which includes with it all of the terms
of the Bonds, also provides that it shall be irrepealable
until the principal of and interest on the Bonds shall have
been fully paid, satisfied and discharged.
UNDERWRITING
Boettcher & Company, Inc., the Underwriter, has agreed
to purchase the Bonds from the City under a Bond Purchase
Agreement at an aggregate purchase price of _% of the
principal amount of the Bonds, plus accrued interest. The
Underwriter is committed to take and pay for all of the
Bonds if any are taken. The Bonds are being offered for
sale to the public at the prices shown on the cover of this
Official Statement.
The Bond Purchase Agreement provides that the
obligations of the Underwriter are subject to certain
conditions, including, among other things, that (i) there
has been no material change in the condition of the City and
the System from that described herein, and (ii) no event has
occurred which impairs or threatens to impair the status of
the interest on the Bonds as exempt from federal income
taxation.
RATINGS
Standard & Poor's Corporation has given the Bonds
ratings of "AA." Such rating reflects only the view of such
organization. There is no assurance that such rating will
continue for any given period of time or that it will not be
revised downward or withdrawn entirely by such rating agency
if, in its judgment, circumstances so warrant. Any such
downward revision or withdrawal of such rating may have an
adverse effect on the market price of the Bonds.
The City recently issued its General Obligation Water
Refunding Bonds, Series 1984A and Series 1984B, in the
aggregate principal amount of $24,115,000, dated as of April
15, 1984. Standard & Poor's Corporation gave such issue a
rating of "AA" and Moody's Investors Service, Inc. gave such
issue a rating of "A." Neither the Series 1984 Bonds nor
the Series 1984 Refunding Bonds has been rated by Moody's
Investors Service, Inc.
-30-
:- a
A certificate to the effect that the Bonds are not
arbitrage bonds within the meaning of Section 103(c) of the
Internal Revenue Code of 1954, as amended, will be provided
to the Underwriter at the time of delivery of the Bonds.
PENDING LEGAL PROCEEDINGS
There is not now pending or threatened, litigation of
any nature seeking to restrain or enjoin, or in any manner
questioning the issuance and delivery of the Bonds, the
proceedings and authority under which the Bonds are issued
or affecting the validity of the Bonds thereunder or the
right and authority of the City to construct the storm sewer
improvements or to refund the Refunded Bonds; and neither
the corporate existence nor the boundaries of the City or
the title of its present officers to their respective
offices is being contested.
TAX EXEMPTION
In the opinion of Kutak Rock & Huie, Denver, Colorado,
Bond Counsel, under existing laws, regulations, rulings and
judicial decisions, interest on the Bonds is exempt from all
present federal income taxes, and, under existing laws of
the State of Colorado, interest on the Bonds is exempt from
all present Colorado individual and corporate income taxes.
EXPERTS
The audited financial statements of the City, included
as Appendix A hereto, have been examined by Becker, Herrick
& Company, Inc., Pueblo, Colorado, independent public
accountants, whose report thereon appears in Appendix A, and
have been so included in reliance upon the report of Becker,
Herrick & Company, Inc. given upon their authority as
experts in accounting and auditing.
APPROVAL OF LEGAL PROCEEDINGS
Legal matters incident to the authorization, issuance
and sale by the City of the Bonds and with regard to the
tax - exempt status thereof are subject to the unqualified
approving opinion of Kutak Rock & Huie, Denver, Colorado,
Bond Counsel. Copies of such opinion will be available at
the time of the delivery of the Bonds. Certain legal
matters will be passed upon for the Underwriter by Kutak
Rock & Huie, Denver, Colorado, and for the City by Thomas E.
Jagger, Esq., as City Attorney.
-31-
i
d"
MISCELLANEOUS
The references in this Official Statement to the
Ordinance, statutes, resolutions, contracts, and other
documents are brief outlines or partial excerpts of certain
provisions of those documents. These outlines or excerpts
do not purport to be complete, and reference is made to the
documents for full and complete statements of their
provisions. All estimates used in this Official Statement,
including estimates of expected construction costs, are
intended only as estimates and not as representations.
The execution and delivery of this Official Statement
by the President of the City Council of the City has been
duly authorized by the City Council of the City of Pueblo,
Colorado.
CITY OF PUEBLO, COLORADO
By /s/ MIC= G. SALAROINO
President, City Council
-32-
APPENDIX A
Audited Financial Statements of
The City of Pueblo, Colorado As of
and For The Year Ended December 31, 1983
A -1
B ecker, Hcrrich be Company, Inc.
CERTIFIED PUBLIC ACCOUNTANTS
RAYMOND J. HERRICK -C P. A
RONALD J. ERJAVEC C. P.A.
City Council
City of Pueblo, Colorado
212 WEST 13TH" STREET
P. O. BOX 7 3 4
PUEBLO, COLORADO 81002
TELEPHONE 1303 542 -8862
We have examined the combined financial statements of the City of Pueblo,
Colorado as of and for the year ended December 31, 1983, as listed in the
table of contents. Our examination was made in accordance with generally
accepted auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we considered
necessary in the circumstances.
In our opinion, the combined financial statements referred to above present
fairly the financial position of the City of Pueblo, Colorado at December
31, 1983, and the results of its operations and changes in the financial
position of its proprietary fund types and pension trust funds for the year
then ended in conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year after giving
retroactive effect to the changes, with which we concur, in the method of
accounting for compensated absences n the general fund as described in Note
12 to the financial statements and the method of accounting for assessments
in the special assessment funds as described in Note 18 to the financial
statements.
March 12, 1984 (except for Note 13, as to
which the date is March 22, 1984)
A -2
GENERAL PURPOSE FINANCIAL STATEMENTS
A -3
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
CITY OF PUEBLO, COLORADO
December 31, 1983
GOVERNMENTAL FUND TYPES
See accompanying notes to financial statements.
A -4
SPECIAL
CAPITAL
ASSETS
GENERAL
REVENUE
PROJECTS
Cash (Note 5)
$ 341,861
$ 17,442 $
Cash with fiscal agent
475,825
Investments, at cost or amortized
cost (Note 5)
7,399,194
3,010,107
2,150,000
Net investment in state fire and
police pension plan (Note 11)
Receivables, net of allowance for
uncollectibles
Taxes (Note 6)
4,200,000
450,900
Accounts
116,067
196,893
Special assessments
29,159
Notes (Note 7)
Accrued interest
302,703
18,082
115,576
Due from other funds (Note 16)
447,257
474,600
99,180
Due from other governments (Note 8)
3,113,464
2,090,993
Inventories, at cost
63,252
Prepaid expenses
Land (Note 9)
Buildings (Note 9)
Improvements (Note 9)
Machinery and equipment (Note 9)
Accumulated depreciation (Note 9)
Construction in progress (Note 9)
Land held for development
Investment in joint venture (Note 10)
Amount to be provided for retirement
of bonds and other debt
TOTAL ASSETS
$ 13,375,318
$ 7,281,488 $
4,455,749
See accompanying notes to financial statements.
A -4
PROPRIETARY FUND TYPES
SPECIAL INTERNAL
ASSESSMENT ENTERPRISE _ SERVICE
$ $ 58,238 $
192,000 3,377,270
200 $
FIDUCIARY
FUND TYPES
TRUST
AND
AGENCY
694 $
3,331,424
18,903,718
ACCOUNT
GROUPS
GENERAL
GENERAL
TOTAL
FIXED
LONG -TERM
(MEMORANDUM
ASSETS
DEBT
ONLY)
371,510
$
$ 418,435
475,825
19,459,995
18,903,718
A -5
91,900
4,742,800
265,649
12,868
591,477
371,510
400,669
2,869,660
2,869,660
6,066
64,296
49,499
556,222
40,964
84,908
3,229
469,274
1,619,412
70,130
5,274,587
229,511
116,224
408,987
7,148
7,148
580,820
7,964,610
8,545,430
6,124,369
9,039,717
15,164,086
12,056,193
66,472,914
78,529,107
3,454,718
90,672
6,261,029
9,806,419
(11,421,954}
( 49,113)
(11,471,067)
1,405,033
1,405,033
32,960
32,960
7 2, 327
7 2, 327
863,000
7,247,818 8,110,818
$ 610,540
$ 16,461,616
$ 161,212
26,592,037
$ 89,738,270
$ 7,247,818 $165,924,048_
A -5
.
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (CONTINUED)
CITY OF PUEBLO, COLORADO
December 31, 1983
LIABILITIES AND FUND EQUITY
Accounts payable
Accrued compensated absences (Note 12)
Accrued expenses
Deposits
Due to other funds (Note 16)
Payroll withholdings
Accrued payroll
Deferred property tax revenue (Note 6)
Deferred revenue
Unearned contract income
Unearned notes receivable (Note 7)
Unearned federal and state grants
(Note 8)
Special assessment bonds payable (Note 15)
Revenue bonds payable (Note 15)
General obligation bonds payable (Note 15)
Obligation under capital lease (Notes 14
and 15)
TOTAL LIABILITIES
11,768
2,602,209 1,801,197
7.133.344 3.360.653 1.956.090
FUND EQUITY
Conributed capital
Investment in general fixed assets
Retained earnings
Reserved for bond retirement
(Note 17)
Unreserved (deficit)
Fund balances
Reserved for S.I.D.
mill levy (Note 17)
Reserved for inventories (Note 17)
Reserved for encumbrances (Note 17)
Reserved for employees' retire-
ment (Note 11)
Unreserved
Designated for subsequent years'
expenditures (Note 17)
Undesignated (deficit)
TOTAL FUND EQUITY (DEFICIT)
TOTAL LIABILITIES AND FUND EQUITY
See accompanying notes to financial statements.
315,823
63,252
12,989 439,268 355,836
3,917,874 4,812,271 1,562,014
1,932,036 ( 1,330,704 581,809
6,241,974 3,920,835 2,499,659
$ 13,375,318 $ 7,281,488 $ 4,455,749
GOVERNMENTAL
FUND TYPES
SPECIAL
CAPITAL
GENERAL
REVENUE
PROJECTS
$ 219,499
$ 201,309 $
50,305
150,000
179,008
1,172,155
94,467
104,588
446,602
766,080
4,200,000
450,900
11,768
2,602,209 1,801,197
7.133.344 3.360.653 1.956.090
FUND EQUITY
Conributed capital
Investment in general fixed assets
Retained earnings
Reserved for bond retirement
(Note 17)
Unreserved (deficit)
Fund balances
Reserved for S.I.D.
mill levy (Note 17)
Reserved for inventories (Note 17)
Reserved for encumbrances (Note 17)
Reserved for employees' retire-
ment (Note 11)
Unreserved
Designated for subsequent years'
expenditures (Note 17)
Undesignated (deficit)
TOTAL FUND EQUITY (DEFICIT)
TOTAL LIABILITIES AND FUND EQUITY
See accompanying notes to financial statements.
315,823
63,252
12,989 439,268 355,836
3,917,874 4,812,271 1,562,014
1,932,036 ( 1,330,704 581,809
6,241,974 3,920,835 2,499,659
$ 13,375,318 $ 7,281,488 $ 4,455,749
PROPRIETARY FUND TYPES
SPECIAL INTERNAL
ASSESSMENT ENTERPRISE SERVICE
$ $ 139,287 $ 50,834 $
137,520 25,989
12,583
29,258 51,991 57,520
293,998
312,862
3,655,000
FIDUCIARY
FUND TYPES
TRUST
AND
AGENCY _
1,929 $
236,229
109,433
91,900
2,869,674
50,000
813,000
636,118 3,996,381 134,343 4,172,165
13,687,776 25,337
ACCOUNT
GROUPS
GENERAL
GENERAL TOTAL
FIXED
LONG -TERM (MEMORANDUM
ASSETS
DEBT ONLY)
89,738,270
600
18,903,718
$ $ 663,163
1,896,280 2,209,789
191,591
236,229
1,619,412
446,602
766,080
4,742,800
29 3, 998
11,768
2,869,674
4,403,406
312,862
3,705,000
5,305,000 6,118,000
46,538 46,538
7,247,818 28,636,912
13,713,113
89,738,270
630,660
( 1,851,669)
315,823
63,252
808,693
18,903,718
10,292,159
( 25,578 3,515,554 4,673,117
( 25,578 12,465,235 26,869 22,419,872 89,738,270 137,287,136
$ 610,540 $ 16,461,616 S 16 1, 212 $ 26,592,037 $ 89,738,270 $ 7,247,818 $165,924,048
A -7
630,660
( 1,853,201) 1,532
l,Vi`"lUliVC.0 J1A1r.;1C.1V1 VC itC.VLrJULJ, L2Ir'✓iNU11UKt.b AM) Vt1A1Nl,LJ 1[N rU1\U bALA:NUtb
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
CITY OF PUEBLO, COLORADO
Year Ended December 31, 1983
Revenues
Taxes
State and federal grants
Licenses and permits
Revenue from other agencies
Charges for services
Fines and forfeits
Interest income
Matching revenue
Project income
Assessments
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Parks and recreation
Transportation
Public works
Programs and projects
Insurance and contingencies
Matching expenditures
Intergovernmental
Capital outlay
Non - capital expenditures
Debt service
Principal retirement
Interest and fiscal charges
Other services and charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
GOVERNMENTAL FUND TYPES
SPECIAL
GENERAL REVENUE
DEBT CAPITAL
SERVICE PROJECTS
1,659,063
$ 20,110,274 $ 459,630 $
5,325,476
97,577
611,395 848,056
163,331
307,493
1,183,203 107,983
501,975
596,291
361,461 18,848
22,834,734 7,858,259
690 290,741
_ 13,301
690 1,963,105
2,155,024
11,556,718
2,155,722
3,613,894)
1,968,771
( 368,451)
1,865,395
3,394,823
9,855,868
2,751,802
3,324,218
Capital contributions (Note 19)
2,710,872
( 799,738
( 456,108
558,432
December 31 $
386,312
$ 3,920,835 $
$ 2,499,659
1,441,157
statements.
503,567
3,182,011
2,205,900
706,839
25,402
310,000
9,701
298,776
15,734
489
23,630,838
7,036,871
608,776
2,206,389
( 796,104)
821,388
( 608,086)
( 243,284)
Other financing sources (uses)
Proceeds from sale of property
Gain on sale of securities
Operating transfers in 4,483,373 5,460,846 608,086 374,833
Operating transfers out ( 7,301,163 ( 4,313,463 ( 500,000
Total other financing
sources (uses) ( 2,817,790 1,147,383 608,086 ( 125,167
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER EXPENDI-
TURES AND OTHER USES (
3,613,894)
1,968,771
( 368,451)
Fund balances (deficit), January 1
(Notes 12, 18 and 20)
9,855,868
2,751,802
3,324,218
Capital contributions (Note 19)
( 799,738
( 456,108
Fund balances (deficit),
December 31 $
6,241,974
$ 3,920,835 $
$ 2,499,659
See accompanying notes to financial
statements.
A -8
SPECIAL
ASSESSMENTS
23,554
95,542
35,023
154,119
FIDUCIARY
FUND TYPES
EXPENDABLE
TRUST
$ 100,886
545,219
26 2, 567
159,344
1,068,016
376,024
13,145
49,439
6,408
55,847
98,272
61,824
( 61,824
53,000
54,319
496,488
571,528
150,000
42,448
575,777
( 753,930)
14,295
98,272
( 123,850)
585,823
2,930,331
$ (-25,578 S 3,516 154
TOTAL
(MEMORANDUM
ONLY)
$ 20,670,790
7,529,758
97,577
1,459,451
163,331
307,493
1,868,738
501,975
596,291
95,542
587,977
33,878,923
2,155,024
11,556,718
2,155,722
1,865,395
3,394,823
3,086,896
558,432
386,312
1,441,157
5,904,623
706,839
388,402
412,235
22,631
34,035,209
( 156,286)
150,000
42,448
11,564,739
(12,930,380
( 1,173,193
( 1,329,479)
18,738,369
( 1,255,846
$ 16,153 044
A -9
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
CITY OF PUEBLO, COLORADO
Year Ended December 31, 1983
ievenues
Taxes
state and federal grants
Licenses and permits
Revenues from other agencies
Charges for services
Fines and forfeits
Interest income
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Parks and recreation
Transportation
Public works
Programs and projects
Insurance and contingencies
Intergovernmental
Capital outlay
Non - capital expenditures
Principal retirement
Interest and fiscal charges
Total expenditures
399,000 391,949
716,043
GENERAL
FUND
SPECIAL REVENUE FUNDS
1,551,968
VARIANCE
110,811
501,022
FAVORABLE
2,545)
4,352,276
BUDGET
ACTUAL
(UNFAVORABLE)
BUDGET
ACTUAL
726,136
$19,808,301
$20,110,274
$ 301,973 $
458,899
$ 459,630
4,734,972
4,120,217
71,500
97,577
26,077
5,806,972
4,335,199
620,794
611,395
( 9,399)
472,000
843,056
128,725
163,331
34,606
520,000
307,493
( 212,507)
850,000
1,183,203
333,203
9,000
105,730
104,850
361,461
256,611
62,205
22,104,170
22,834,734
730,574
5,674,871
5,590,838
2,252,423
2,155,024
97,399
11,930,677
11,556,718
373,959
2,164,754
2,155,722
9,032
1,874,568
1,865,395
9,173
3,388,801
3,394,823
( 6,022)
399,000 391,949
716,043
558,432
157,611
1,551,968
1,441,157
110,811
501,022
503,567 (
2,545)
4,352,276
3,182,011
1,029,369
726,136
18,955
25,402
7,372
9,701
24,380,256
23,630,838
749,418
5,806,972
4,335,199
Excess (deficiency) of revenues
over expenditures (2,276,086) ( 796,104)
Other financing sources (uses)
Operating transfers in 4,483,373 4,483,373
Operating transfers out (7,412,059 (7,301,163
Total other financing
sources (uses) (2,928,686 (2,817,790
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER EXPEN-
ITURES AND OTHER USES (5,204,772) (3,613,894)
Fund balances (deficit), Jan-
uary 1 (Notes 12 and 23)
Capital contributions (Note 19)
Fund balance (deficit) Dec-
ember 31 (Note 3)
9,855,868
1,479,982 ( 132,101) 1,255,639
5,141,346 5,141,346
110,896 (4,582,603 (4,313,463
110,896 558,743 827,883
1,590,878 426,642 2,083,522
9,855,868 2,625,203
(1,308,644 ( 799,738
$(5,204,772)$ 6,241,974 $ 11,446,746 $( 882,002) 8 3,908,987
See accompanying notes to financial statements.
A -10
DEBT SERVICE FUNDS
VARIANCE VARIANCE
FAVORABLE FAVORABLE
UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE
$ 731 $ $
( 614,755)
371,056
96,730
62,205
( 84,033
7,051
1,170,265
303,233
( 6,447) 310,000 310,000
( 2,329 300,478 298,776
1,471,773 610,478 608,776
1,387,740 ( 610,478) ( 608,086)
TOTAL ('fEMORANDUM ONLY)
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ $20,267,200
$20,569,904 $
302,704
4,734,972
4,120,217 (
614,755)
71,500
97,577
26,077
1,092,794
1,454,451
361,657
128,725
163,331
34,606
520,000
307,493 (
212,507)
690 859,000
1,289,623
430,623
104,850
423,666
318,816
690 27,779,041
28,426,262
647,221
2,252,423
2,155 024
97,399
11,930,67-
11,5- -,,718
373,959
2,164,754
2,155,722
9,032
1,874,568
1,865,395
9,173
3,388,801
3,394,823 (
6,022)
399,000
391,949
7,051
716,043
558,432
157,611
1,551,968
1,441,157
110,811
4,853,298
3,685,578
1,167,720
1,029,369
726,136
303,233
328,955
335,402 (
6,447)
1,702 307,850
308,477 (
627
1,702 30,797,706
28,574,813
2,222,893
2,392 (3,018,665) ( 148,551) 2,870,114
610,478 608,086 ( 2,392) 10,235,197 10,232,805 ( 2,392)
269,140 (11,994,662 380,036
269,140 610,478 608,086 ( 2,392 (1,759,465 1,381,821 377,644
1,656,880
2,625, 203
508,906
( 4,778,130)( 1,530,372) 3,247,758
12,481,071 12,481,071
( 1,308,644 799,738 50
$ 4,790,989 $ $ $(6,086,774 S 16,237,735
A -11
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS /FUND BALANCES
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
CITY OF PUEBLO, COLORADO
Year Ended December 31, 1983
PROPRIETARY FUND TYPES
INTERNAL
ENTERPRISE SE RVICE
Operating revenues
Charges for services $ 4,225,560 $ 1,385,150
Investment income
Realized and unrealized gains (losses) from
security transactions
Pension contributions
Total operating revenues 4,225,560 1 ,385,150
Operating expenses
Pension payments and member refunds
Salaries
2,127,016
373,069
Compensated absences
16,515 (
5,607)
Contract fees and salaries
253,379
Pension
171,374
37,737
Taxes
44,159
Merchandise and supplies
238,077
896,221
Advertising
16,806
Insurance
122,226
9,387
Fringe benefits
231,351
50,716
Management fees
31,834
Supplies
256,433
12,704
Professional services
356,411
Repairs and maintenance
358,728
6,590
Depreciation
484,332
8,142
Utilities and communications
437,368
23,499
Other services and charges
96,517
1,116
Total operating expenses
5,242,526
1,413,574
Operating income (loss)
(1,016,966) (
28,424)
Nonoperating revenues (expenses)
Contribution of transition asset pool assets, net of
cost basis of assets contributed of $606,935
Conversion of transition asset pool asset
and income to FPPA market value
Transfer to new hire fund
Operating grants 410,809
Equity in income (loss) of joint venture ( 2,266)
Interest income 327,228
Interest and fiscal charges ( 411,579)
Miscellaneous 8,961
Income (loss) before operating transfers ( 683,813) ( 28,424)
Operating transfers
Operating transfers in 1,343,150
NET INCOME (LOSS) 659,337 ( 28,424)
Retained earnings /fund balances (deficit), January 1
(Note 1 (1,881,878 29,956
Retained earnings /fund balances (deficit), December 31 $(1,222,541 $ 1,532
See accompanying notes to financial statements.
A -12
FIDUCIARY
FUND TYPES
PENSION
TRUSTS
1,271,929
148,378
2,525,381
3,945,688
1,785,215
1,785,215
2,160,473
135,727
437,698
( 18,109)
2,715,789
2,715,789
16,187,929
S 18,903 718
TOTAL
( MEMORANDUM
ONLY)
$ 5,610,710
1,271,929
148,378
2,525,381
9,556,398
1,785,215
2,500,085
10,908
253,379
209,111
44,159
1,134,298
16,806
131,613
282,067
31,834
269,137
356,441
365,318
492,474
460,867
97,633
8,441,315
1,115,083
135,727
437,698
( 18,109)
410,809
( 2,266)
327,228
( 411,579)
8,961
2,003,552
1,343,150
3,346,702
14,336,007
$17,682,709
A -13
CO ",BIKED STATE:,ENT OF CHjkNGES IN FIi;AI'CIAL POSITION
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
CITY OF PUEBLO, COLORADO
Year Ended December 31, 1983
FIDUCIARY
PROPRIETARY FU ND TYPES FUND TYPES
FINANCIAL RESOURCES PROVIDED
Net income (loss) $ 659,337
Items not requiring working
capital:
Investment in joint venture 466
Depreciation _ 484,332
Working capital provided (used)
by operations 1,144,135
Contributions 1,870,203
Decrease in working capital
TOTAL FINANCIAL RESOURCES
PROVIDED
FINANCIAL RESOURCES APPLIED
Acquisition of property and
equipment
Construction in progress
Reduction of revenue bonds
payable
Increase in net investment in
state fire and police pension
plan
Increase in working capital
TOTAL FINANCIAL RESOURCES
APPLIED
ELEMENT OF INCREASE (DECREASE)
IN WORKING CAPITAL
Cash
Investments
Receivables, net
Due from general fund
Due from other governments
Inventories
Prepaid expenses
Accounts payable
Accrued compensated absences
Accrued expenses
Due to general fund
Deferred income
Revenue bonds payable
INCREASE (DECREASE) IN WORKING
$3,014,338 $ 12,146 $ 2,715,789 $ 5,742,273
$1,073,520
1,405,033
:1 111
$ 12,146 $
$ 1,085,666
1,405,033
80,000
2,715,789
455,785
2,715,789
455,785
$3,014,338 $ 12,146 $ 2,715,789 $ 5,742,273
$ 20,103
608,775
( 135,264)
( 38,829)
9,275
39,435
( 4,413)
( 20,406)
( 16,515)
( 1,742)
( 26,560)
16,926
5,000
$ 75 $
( 2,488)
(57,005)
(42,341)
5,607
63,724
$
20,178
TOTAL
INTERNAL
PENSION
(MEMORANDUM
SERVICE
TRUSTS
ONLY)
$(28,424)
$ 2,715,789
$ 3,346,702
(
4,413)
466
8,142
(
492,474
(20,282)
2,715,789
3,839,642
37,164
1,870,203
32,428
5,000
32,428
FINANCIAL RESOURCES PROVIDED
Net income (loss) $ 659,337
Items not requiring working
capital:
Investment in joint venture 466
Depreciation _ 484,332
Working capital provided (used)
by operations 1,144,135
Contributions 1,870,203
Decrease in working capital
TOTAL FINANCIAL RESOURCES
PROVIDED
FINANCIAL RESOURCES APPLIED
Acquisition of property and
equipment
Construction in progress
Reduction of revenue bonds
payable
Increase in net investment in
state fire and police pension
plan
Increase in working capital
TOTAL FINANCIAL RESOURCES
APPLIED
ELEMENT OF INCREASE (DECREASE)
IN WORKING CAPITAL
Cash
Investments
Receivables, net
Due from general fund
Due from other governments
Inventories
Prepaid expenses
Accounts payable
Accrued compensated absences
Accrued expenses
Due to general fund
Deferred income
Revenue bonds payable
INCREASE (DECREASE) IN WORKING
$3,014,338 $ 12,146 $ 2,715,789 $ 5,742,273
$1,073,520
1,405,033
:1 111
$ 12,146 $
$ 1,085,666
1,405,033
80,000
2,715,789
455,785
2,715,789
455,785
$3,014,338 $ 12,146 $ 2,715,789 $ 5,742,273
$ 20,103
608,775
( 135,264)
( 38,829)
9,275
39,435
( 4,413)
( 20,406)
( 16,515)
( 1,742)
( 26,560)
16,926
5,000
$ 75 $
( 2,488)
(57,005)
(42,341)
5,607
63,724
$
20,178
608,775
(
135,264)
(
41,317)
9,275
(
17,570)
(
4,413)
(
62,747)
(
10,908)
(
1,742)
37,164
16,926
5,000
CAPITAL $ 455,785 $(32,428 $
See accompanying notes to financial statements.
423.357
A -14
NOTES TO FINANCIAL STATEMENTS
CITY OF PUEBLO, COLORADO
December 31, 1983
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The City of Pueblo, Colorado was incorporated in 1885 as a home rule city
under the Constitution of the State of Colorado. The City operates under
a council- manager form of government and provides the following services
as authorized by its charter: public safety (police and fire), highways
and streets, sanitation, social services, culture - recreation, public
improvements, planning and zoning, and general administrative services.
The accounting policies of the City of Pueblo, Colorado conform to
generally accepted accounting principles as applicable to governments.
The following is a summary of the.more significant policies:
A. REPORTING ENTITY - For financial reporting purposes, in conformance
with NCGA Statement No. 3, "Defining the Governmental Reporting
Entity," the City of Pueblo, Colorado includes all funds, account
groups, agencies, boards, commissions and authorities that are
controlled by or dependent on the City. Control by or dependence on
the City was determined on the basis of taxing authority, receipt of
significant subsidies and responsibility for resources. Based on the
foregoing criteria, the following organizations are included in the
City's annual report:
Pueblo Area Council of Governments - The City provides approximately
75% of the revenue to the Pueblo Area Council of Governments ( PACOG).
A majority of the governing body of PACOG is composed of members of
City Council.
Regional Planning Commission - The Regional Planning Commission is an
agency of PACOG and the majority of its revenue is provided by
operating transfers from PACOG.
Human Resources C ommission - The Human Resources Commission is an
agency of PACOG
operating transfer
and the majority of its revenue is provided by
s from PACOG.
Pueblo Urban Transportation - The Pueblo Urban Transportation is an
agency of PACOG and revenue is provided in part from operating
transfers from PACOG.
Area Aging Agency - The Area Aging Agency is also an agency of the
Pueblo Area Council of Governments.
Downtown Improvement District - The governing body of the Downtown
Improvement District is composed entirely of members of the city
council. Revenue is provided by an annual tax levy set by the
governing body.
Pueblo Head Start - Pueblo Head Start is a separate, non - profit entity
organized to implement certain federal programs. The City is the
grantee for the corporation in receiving federal funds and thus, bears
ultimate responsibility for the disposition of those resources. The
City also appoints members to the corporation's governing body.
A -15
Note 1. Continued
Pueblo Regional Building Department - As further discussed in note 9,
the Pueblo Regional Building Department is a joint venture between the
City of Pueblo, Colorado and the County of Pueblo, Colorado for the
purpose of enforcing building codes and licensing contractors. The
governing body of the Regional Building Department is composed of
seven members, three of which are appointed by the City, three are
appointed by the County and one member is jointly appointed.
Pueblo City - County Health Department - The Pueblo City- County Health
Department is also a joint venture between the City of Pueblo,
Colorado and the County of Pueblo, Colorado created in 1952 for the
purpose of providing public health care services to the residents of
the city and county. Approximately 50% of the departments' revenues
are composed of subsidies from the City of Pueblo, Colorado and the
County of Pueblo, Colorado with another 25% coming from the State of
Colorado in the form of a subsidy. The balance of the departments'
revenues are derived from grants and user charges. The governing body
of the department is composed of five members, of which two are
appointed by the City of Pueblo, two are appointed by the County of
Pueblo and one member is jointly appointed.
The Pueblo Area Council of Governments and its agencies are reported
in the accompanying financial statements with the special revenue
funds while the Downtown Improvement District is reported with the
fiduciary funds as an expendable trust fund. The investment in the
Pueblo Regional Building Department joint venture is reported with the
enterprise funds using the equity method of accounting while the
investment in the City- County Health Department joint venture is a
governmental -type fund joint venture and thus, the investment is not
reported in the accompanying financial statements.
The following organizations are not part of the City of Pueblo,
Colorado and thus are excluded from the accompanying financial
statements:
Pueblo Board of Water Works - The governing body of the Pueblo Board
of Water Works, which provides water service to the residents of the
city and county, is elected by the citizens of the city. The Board's
operating and capital expenditures, including debt service, are
financed entirely from charges for water service. The City has no
involvement in the determination of the Board's budget or water rates.
Pursuant to the City Charter, the entire control, management, and
operation is vested in the Board of Water Works. City Council is
required to adopt all ordinances requested by the Board which are
reasonably necessary to assist the Board in management of the
system and its property or to enable the Board to purchase or condemn
additional water rights or property of any kind to supply water to the
city. Additionally, title to the properties of the water works system
is held in the name of the City of Pueblo, Colorado and all general
obligation water bonds are legally valid general obligation bonds upon
the City. The general obligation water bonds are also secured by a
pledge of the net revenues derived from the water works system
operated by the Board of Water Works. Even though title to the
A -16
Note 1. Continued
properties operated by the Board of Water Works is in the City's name
and the general obligation water bonds are legally valid obligations
of the City, the entire control, management, and operation of the
municipal water works system is vested in the Board of Water Works.
Financial transactions between the City and the Board of Water Works,
reported in the accompanying financial statements, reflect contractual
agreements between the parties for the provision of specific services.
Pueblo Housing Authority - The Authority's operating and capital
expenditures are financed entirely from federal grants and rentals.
The City has no involvement in the determination of the Authority's
budget and rental rates or any obligation for the Authority's
outstanding debt.
B. FUND ACCOUNTING - The accounts of the City are organized on the basis
of funds and account groups, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with
a separate set of self- balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures, or expenses, as
appropriate. Government resources are allocated to and accounted for
in individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled. The
various funds are grouped, in the accompanying financial statements,
into eight generic fund types and three broad fund categories as
follows:
GOVERNMENTAL FUNDS
GENERAL FUND - The general fund is the general operating fund of the
City. It is used to account for all financial resources except those
required to be accounted for in another fund.
SPECIAL REVENUE FUNDS - Special revenue funds are used to account for
the proceeds of specific revenue sources, other than special
assessment, expendable trusts, or major capital projects. The special
revenue funds consist principally of the capital improvement fund,
federal revenue sharing fund, community development fund, and highway
users fund. The expenditures of these funds are legally restricted
for specified purposes as mandated by the City Charter for the capital
improvement fund, by federal rules and regulations for the revenue
sharing fund and community development fund, and state guidelines for
the highway users fund.
The remaining special revenue funds consist of the Pueblo Area Council
of Governments ( PACOG) and its agencies and other federally- funded
projects. Expenditures and transfers by PACOG and its agencies
are restricted to amounts approved by PACOG's governing board and, in
the case of federally- funded projects, which includes PACOG's
agencies, expenditures are restricted based upon criteria established
by the applicable federal agency.
DEBT SERVICE FUNDS - Debt service funds are used to account for the
accumulation of resources for, and payment of, general long -term debt
principal, interest, and related costs.
A -17
Note 1. Continued
CAPITAL PROJECTS FUNDS - Capital projects funds are used to account
for financial resources to be used for the acquisition or construction
of major capital facilities, other than those financed by proprietary
funds, special assessment funds, and fiduciary funds.
SPECIAL ASSESSMENT FUNDS - Special assessment funds are used to
account for the financing of public improvements or services deemed to
benefit the properties against which special assessments are levied.
PROPRIETARY FUNDS
ENTERPRISE FUNDS - Enterprise funds are used to account for operations
(a) that are financed and operated in a manner similar to private
enterprises - where the intent of the governing body is that the
costs, including depreciation, of providing goods or services to the
general public on a continuing basis be financed or recovered
primarily through user charges; or (b) where the governing body has
decided that periodic determination of revenues earned, expenses
incurred, and net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
INTERNAL SERVICE FUNDS - Internal service funds are used to account
for the financing of goods or services provided by one department or
agency to other departments or agencies of the City, on a
cost - reimbursement basis.
FIDUCIARY FUNDS
TRUST AND AGENCY FUNDS - Trust and agency funds are used to account
for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governments, and /or other
funds. These include expandable trust, pension trust and agency
funds. Pension trusts are accounted for in essentially the same
manner as proprietary funds since capital maintenance is critical.
Expendable trusts are accounted for in essentially the same manner as
governmental funds. Agency funds are custodial in nature (assets
equals liabilities) and do not involve measurement of results of
operations.
C. FIXED ASSETS AND LONG -TERM LIABILITIES - The accounting and reporting
treatment applied to the fixed assets and long -term liabilities
associated with a fund are determined by its measurement focus. All
governmental funds and expendable trust funds are accounted for on a
spending or "financial flow" measurement focus. This means that only
current assets and current liabilities are generally included in their
balance sheets. Their reported fund operating statements present
increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of
"available spendable resources" during a period.
FEW
Note 1. Continued
Fixed assets used in governmental fund type operations (general fixed
assets) are accounted for in the General Fixed Assets Account Group,
rather than in governmental funds. Public domain ( "infrastructure ")
general fixed assets consisting of certain improvements other than
buildings, including roads, bridges, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems, are capitalized
along with other general fixed assets. No depreciation has been
provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical
cost if actual historical cost is not available. Donated fixed assets
are valued at their estimated fair value on the date donated.
Long -term liabilities expected to be financed from governmental funds
are accounted for in the General Long -Term Debt Account Group, not in
the governmental funds. The one exception to this general rule is for
special assessment bonds, which are accounted for in special
assessment funds.
The two account groups are not "funds." They are concerned only with
the measurement of financial position. They are not involved with
measurement of results of operations.
Special reporting treatments are applied to governmental fund
inventories to indicate they do not represent "available spendable
resources," even though they are a component of net current assets.
Such amounts are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition
for governmental fund types is limited to exclude amounts represented
by noncurrent liabilities. Since they do not affect net current
assets, such long -term amounts are not recognized as governmental fund
type expenditures or fund liabilities. They are instead reported as
liabilities in the General Long -Term Debt Account Group.
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all
assets and liabilities, whether current or noncurrent, associated with
their activity are included on their balance sheets. Their reported
fund equity (net total assets) is segregated into contributed capital
and retained earnings components. Proprietary fund type operating
statements present increases (revenues) and decreases (expenses) in
net total assets.
Depreciation on all exhaustible fixed assets used by proprietary funds
is charged as an expense against their operations. Accumulated
depreciation is reported on proprietary fund balance sheets.
Depreciation has been provided over the estimated useful lives using
the straight -line method. The estimated useful lives are as follows:
Buildings and improvements 50
Machinery and equipment 10
A -19
Note 1. Continued
D. BASIS OF ACCOUNTING - Basis of accounting refers to when revenues and
expenditures or expenses are recognized in the accounts and reported
in the financial statements. Basis of accounting relates to the
timing of the measurements made, regardless of the measurement focus
applied.
All governmental funds and expendable trust funds are accounted for
using the modified accrual basis of accounting. Their revenues are
recognized when they become measureable and available as net current
assets. The major sources of revenue which are susceptible to accrual
are property taxes, interest income and grants from federal and state
governments.
Expenditures are generally recognized under the modified accrual basis
of accounting when the related fund liability is incurred. Exceptions
to this general rule include principal and interest on general
long -term debt which is recognized when due.
All proprietary funds and pension trust funds are accounted for using
the accrual basis of accounting. Their revenues are recognized when
they are earned, and their expenses are recognized when they are
incurred. Since the City does not operate any utility services, no
unbilled utility services are recorded. Sewer user fees, which are
collected for the City by the Board of Water Works, which operates the
water system, are recorded when earned.
E. BUDGET PRESENTATIONS AND ENCUMBRANCES - GAAP basis budgetary
comparisons are included for the general fund, certain special revenue
funds and debt service funds which are the governmental fund types for
which an annual budget has been adopted. The budget presentation for
the special revenue funds includes only the following funds: capital
improvement, federal revenue sharing, community development, highway
users and Pueblo Area Council of Governments (PACOG). The remaining
special revenue funds generally consist of federally- funded
projects for which annual appropriations are not made by City Council
but are governed by project budgets established by the appropriate
funding agency.
Expenditure estimates in the annual budgets are enacted into law
through the passage of an appropriation ordinance, or resolution in
the case of PACOG. City Council may amend the original adopted budget
during the year by passing a new ordinance to reflect current needs
and during 1983, the expenditure estimates were amended. These
amendments were made in accordance with the City Charter.
For each legally adopted annual operating budget, budgetary control
exists at the total fund level. That is to say, total expenditures;
other financing uses and capital contributions for each fund cannot
legally exceed total appropriations for that fund.
Encumbrance accounting, under which purchase orders, contracts, and
other committments for the expenditure of monies are recorded in order
to reserve that portion of the applicable appropriation, is employed
as an extension of the formal budgetary integration in the general
A -20
Note 1. Continued
fund, special revenue funds, capital projects funds, and special
assessment funds. Encumbrances outstanding at year end are reported
as reservations of fund balances since they do not constitute
expenditures or liabilities. In addition, appropriations, including
encumbered appropriations, lapse at year end..
F. INVESTMENTS - Investments are stated at cost or amortized cost, which
approximates market.
G. INVENTORIES - Inventory is valued at the lower of first -in, first -out
cost or market. Inventory in the general fund consists principally of
expendable supplies held for consumption. The cost is recorded as an
expenditure at the time individual inventory items are purchased.
Reported inventories are equally offset by a fund balance reserve
which indicates that they do not constitue "available spendable
resources" even though they are a component of net current assets.
H. REVENUES, EXPENDITURES AND EXPENSES - Property taxes for the current
year that are collected in the subsequent year are accrued as a
receivable with an offsetting credit to deferred revenues in as much
as while they are measurable, they are not available to finance
current operations. Revenue from state and federal grants is
recognized as grant costs are incurred.
The City affords all full -time employees vacation and sick pay
benefits. The amount of accrued vacation and sick pay outstanding at
year end is based on current salary, costs and is determined on a
terminated basis in accordance with present City policies. The total
amount of accrued vacation and sick pay benefits for proprietary fund
employees has been accrued as a liability in the affected fund while
the remaining liability has been recognized in the general long -term
debt account group, except for $150,000 which has been accrued as a
liability in the general fund in accordance with NCGA Statement 4.
I. TOTAL COLUMNS ON COMBINED STATEMENTS - OVERVIEW - Total columns on the
combined statements - overview are captioned memorandum only to indicate
that they are presented only to facilitate financial analysis. Data
in these columns do not present financial position, results of
operations, or changes in financial position in conformity with
generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been
made in the aggregation of this data.
Note 2. EXCESS OF BUDGETED EXPENDITURES AND OTHER FINANCING USES OVER ACTUAL
EXPENDITURES AND OTHER FINANCING USES - The following individual funds
incurred actual expenditures and other financing uses in excess of
budgeted expenditures and other financing uses:
A -21
Note 2. Continued
While the City accounts for enterprise funds on the accrual basis, budgets
are prepared on the modified accrual basis. The actual expenditures and
other financing sources presented above are reported on the modified
accrual basis which is the same accounting basis used in preparation of
the budgets.
Note 3. BUDGETED DEFICIT FUND BALANCES - The following is a summary of the
individual funds that had budgeted deficit fund balances at December 31,
1983:
General Fund $ 5,204,772
SPECIAL REVENUE FUNDS
Capital Improvement $ 410,039
Federal Revenue Sharing 96,963
Highway Users 360,000
Council of Governments 15,000
882 002
The above deficits represent the excess of budgeted expenditures and other
financing uses over anticipated revenues and other financing sources for
1983. These deficits have been financed from fund balance accumulations.
Note 4. DEFICIT FUND /RETAINED EARNINGS BALANCES - The following is a summary of
the individual funds which had deficit fund /retained earnings balances at
December 31, 1983:
SPECIAL REVENUE FUNDS
Head Start
ACTUAL EXPENDITURES AND
BUDGETED EXPENDITURES AND
ACTUAL OVER
ENTERPRISE FUNDS
OTHER FINANCING USES
OTHER FINANCING USES
BUDGET
SPECIAL ASSESSMENT FUNDS
74 -3
Golf Course
$ 339,767
$ 330,225
$ 9,542
Sewer User
2,548,842
2,520,062
28,780
Mountain View
75 -7
831
76 -4
Cemetary
214,003
208,910
5,093
While the City accounts for enterprise funds on the accrual basis, budgets
are prepared on the modified accrual basis. The actual expenditures and
other financing sources presented above are reported on the modified
accrual basis which is the same accounting basis used in preparation of
the budgets.
Note 3. BUDGETED DEFICIT FUND BALANCES - The following is a summary of the
individual funds that had budgeted deficit fund balances at December 31,
1983:
General Fund $ 5,204,772
SPECIAL REVENUE FUNDS
Capital Improvement $ 410,039
Federal Revenue Sharing 96,963
Highway Users 360,000
Council of Governments 15,000
882 002
The above deficits represent the excess of budgeted expenditures and other
financing uses over anticipated revenues and other financing sources for
1983. These deficits have been financed from fund balance accumulations.
Note 4. DEFICIT FUND /RETAINED EARNINGS BALANCES - The following is a summary of
the individual funds which had deficit fund /retained earnings balances at
December 31, 1983:
SPECIAL REVENUE FUNDS
Head Start
$ 53,336
CAPITAL PROJECTS FUNDS
Airport Development
48,239
Reeler Parkway Extension
14,322
SPECIAL ASSESSMENT FUNDS
74 -3
847
75 -1
11,720
75 -2
11,477
75 -5
5,624
75 -6
1,635
75 -7
831
76 -4
13,818
76 -7
519
77 -2
126
77 -4
792
78 -3
2,347
78 -4
866
A -22
Note 4. Continued
79 -3
896
79 -9
2,837
79 -10
9,329
79 -11
27,372
79 -12
11,178
80 -1
18,375
80 -2
3,667
80 -3
17,233
80 -6
4,535
80 -8
5,031
80 -10
30,490
81 -1
10,865
81 -2
22,159
81 -3
3,184
82 -1
13,489
83 -2
84
ENTERPRISE FUNDS
Memorial Airport
18,332
Ice Arena
167,010
Public Transportation
1,223,451
Sewer User
150,533
INTERNAL SERVICE FUNDS
City Shops
11,641
TRUST AND AGENCY FUNDS
Restoration of Carousel
5,011
It is anticipated that the deficit in the head start fund will be financed
by federal grant revenue. The deficits in the capital projects fund will
be financed by federal grant revenues and operating transfers from the
general fund. The deficits in the special assessment funds will be
financed by the subsequent collection of assessments that have been
recorded as deferred revenue and operating transfers from other funds.
The deficits in the ice arena and public transportation enterprise funds
will be financed by operating transfers from the general fund as well as
subsidies from the federal government for the public transportation fund
while the deficit in the sewer user enterprise fund will be financed by
operating revenues. The deficit in the memorial airport enterprise fund
will be financed by operating revenues and operating transfers from the
general fund.
It is anticipated that the deficit in the city shops internal service fund
will be financed from operating revenues.
Note 5. CASH AND INVESTMENTS - Cash and investments in the general fund are
restricted in the amount of $ 1,172,155 which are due to other funds.
Note 6. PROPERTY TAXES - Property taxes are collected by the Pueblo County
Treasurer and are remitted monthly to the City. The 1983 property taxes
were levied on November 1, 1983, and the lien date was January 2, 1984.
The accrued property taxes consist of the 1983 taxes which are collectible
in 1984 as follows:
General fund
Special revenue funds
Fiduciary funds
$ 4,200,000
450,900
91,900
$ 4,742,800
A -23
Note 7. NOTES RECEIVABLE - Notes receivable of $2,869,660 at December 31, 1983
represent loans made under a housing rehabilitation program. These loans
are only partially repayable based on the participant's income level and
other criteria. However, if the property is sold or the participant is no
longer living in the rehabilitated residence, the total loan becomes due.
The total note is recorded as a receivable and is offset by unearned notes
receivable.
Note 8. DUE FROM OTHER GOVERNMENTS - Federal and state grants are recorded as a
receivable at the time the grant is awarded. Revenue is recognized as
grant costs are incurred. The unearned federal and state grants represent
that portion of the related receivable that has not been recognized as
revenue as of December 31, 1983. This portion will be recognized as
revenue as grant costs are incurred in future periods.
Note 9. CHANGES IN GENERAL FIXED ASSETS - The following is a summary of changes in
general fixed assets for the year ended December 31, 1983:
A summary of proprietary fund fixed assets at December 31, 1983 is as
follows:
BALANCE
ENTERPRISE
FUNDS
BALANCE
JANUARY 1, 1983
ADDITIONS
DELETIONS
DECEMBER 31, 1983
Land
$ 6,634,994
$ 1,362,576
$ 32,960 $
7,964,610
Buildings
9,321,811
116,346
398,440
9,039,717
Improvements
63,390,689
3,613,180
530,955
66,472,914
Machinery and
Improvements
583,051
11,341,607
31,713
equipment
6,097,429
1,354,191
1,190,591
6,261,029
$ 85,444,923
$ 6,446,293
$ 2,152,946 S
89,738,270
A summary of proprietary fund fixed assets at December 31, 1983 is as
follows:
A -24
ENTERPRISE
FUNDS
GOLF
MEMORIAL
ICE
PUBLIC
COURSE
AIRPORT
ARENA
TRANSPORTATION
Land
$ 5,878
$ 49,409
$ 111,696
$ 280,037
Buildings
222,230
2,668,309
1,173,711
1,525,827
Improvements
583,051
11,341,607
31,713
99,822
Machinery and
equipment
185,251
543,944
87,357
2,055,635
Total
996,410
14,603,269
1,404,477
3,970,121
Accumulated
depreciation
(531,521
( 9,374,735
( 232,326
( 1,009,251
Net
$ 464,889
$ 5,228,534
$ 1,172,151
$ 2,960,870
Construction in
progress
S
$ 927,861
S
2,059
Depreciation
expense for
year
1 2 _, 7 2
x_147,585
S 33,363
$ 225,484
A -24
Note 9• Continued
REGIONAL BUILDING DEPARTMENT
The Pueblo Regional Building Department was created by the governments of
the City of Pueblo, Colorado and the County of Pueblo, Colorado to promote
the public health, safety and welfare through the enforcement of building
codes and licensing of contractors. The governing body of the Department
consists of seven members, three of which are appointed by the City, three
are appointed by the County and one member is jointly appointed. The
governing body of the Department has authority for the appointment of
management. The joint venture agreement requires that the annual
operating budget of the department be submitted to the City and County for
approval prior to adoption. The agreement also stipulates that the
Department provide an accounting of actual revenues and expenses to the
City and County on a monthly basis. In addition, the fees charged for the
issuance of permits and licenses are subject to the approval of the City
and County. To the extent feasible, expenses of the Department are
allocated to the participants based on the proportion of the value of
construction work performed within the participant's jurisdiction compared
A -25
ENTERPRISE FUNDS
SEWER
SWIMMING
USER
POOLS
CEMETARY
TOTAL
Land
$ 125,000
$
$
$ 580,820
Buildings
3,336
530,956
6,124,369
Improvements
12,056,193
Machinery and
equipment
517,700
31,862
32,969
3,454,718
Total
646,036
562,818
32,969
22,216,100
Accumulated
depreciation
(249,167
( 21,094
( 3,860
(11,421,954
Net
S 396,869
S 541,724
S 29,109
$ 10,794,146
Construction in
progress
S 475.113
S
S
1 .033
Depreciation expense
for year
S 30.174
S 21.094
S 3,860
$ 484,332
INTERNAL
SERVICE FUNDS
CITY TRANSPORTATION
SHOPS SERVICES
TOTAL
Machinery and equipment
$ 72,916 $
17,756
$90,672
Accumulated depreciation
(39,428 (
9,685
(49,113
Net
L_12_.488 S
8,071
$41,559
Depreciation expense
for year
S 6,431 $
1,711
$ 8,142
Note 10. JOINT VENTURES -
The City is
a participant
in two joint
ventures
consisting of the Regional Building
Department and the Pueblo City- County
Health Department.
A summary of
the activities of
these joint ventures is
as follows:
REGIONAL BUILDING DEPARTMENT
The Pueblo Regional Building Department was created by the governments of
the City of Pueblo, Colorado and the County of Pueblo, Colorado to promote
the public health, safety and welfare through the enforcement of building
codes and licensing of contractors. The governing body of the Department
consists of seven members, three of which are appointed by the City, three
are appointed by the County and one member is jointly appointed. The
governing body of the Department has authority for the appointment of
management. The joint venture agreement requires that the annual
operating budget of the department be submitted to the City and County for
approval prior to adoption. The agreement also stipulates that the
Department provide an accounting of actual revenues and expenses to the
City and County on a monthly basis. In addition, the fees charged for the
issuance of permits and licenses are subject to the approval of the City
and County. To the extent feasible, expenses of the Department are
allocated to the participants based on the proportion of the value of
construction work performed within the participant's jurisdiction compared
A -25
Note 10. Continued
to the total value of construction work performed in the entire area. If
allocated expenses to any participant exceed revenues generated in that
participant's jurisdiction, the governing body of the Department may
charge the participant for the deficiency subject to appropriation and the
conformity of the expenses incurred to the annual budget approved by the
City and County.
Summary financial information of the Regional Building Department as of
and for the year ended December 31, 1983 is as follows:
PUEBLO REGIONAL BUILDING DEPARTMENT
BALANCE SHEET
December 31, 1983
ASSETS
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
TOTAL LIABILITIES
FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
S 91,732
$ 10,810
80,922
� 91,732
PUEBLO REGIONAL BUILDING DEPARTMENT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1983
Operating revenues $ 195,695
Operating expenses 386,949
Operating income (loss) (191,254)
Other financing sources (uses)
City of Pueblo subsidy 158,000
County of Pueblo subsidy 30,000
Other 556
NET INCOME (LOSS) ( 2,698)
Retained earnings, January 1 56,417
Retained earnings, December 31 L-53,719
A -26
Note 10. Continued
In as much as the purpose of the Department is to be self- supporting
through user fees, the Department has adopted accounting principles which
correspond to those used by proprietary funds. Thus, the investment in
the joint venture is accounted for using the equity method of accounting.
Additionally, the joint venture has no debt which would necessitate the
pledging of Department assets as collateral.
PUEBLO CITY - COUNTY HEALTH DEPARTMENT
The Pueblo City- County Health Department was created by the governments of
the City of Pueblo, Colorado and the County of Pueblo, Colorado in 1952.
The purpose of the Department is to provide public health services to the
residents of the city and county. The governing body of the Department
consists of five members, two of which are appointed by the City, two are
appointed by the County and one member is jointly appointed by the City
and County. The governing body of the Department appoints the
administrator and the administrator appoints all other personnel. The
joint venture agreement requires that the governing body of the Department
submit a proposed annual operating budget to the City and County for their
approval. Based upon the proposed budget, the City and County individually
determine the amount of their respective annual subsidies for the
Department. The joint venture agreement also stipulates that the
participants' shall endeavor to appropriate funds to the Department that
are reasonable, fair and equitable to all parties.
Summary financial information of the Pueblo City- County Health Department
as of and for the year ended December 31, 1983 is as follows:
PUEBLO CITY - COUNTY HEALTH DEPARTMENT
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1983
TOTAL
GENERAL GENERAL (MEMORANDUM
ASSETS FUND FIXED ASSETS ONLY)
TOTAL ASSETS S 361,965 S 320,099 $ 682,064
LIABILITIES AND FUND EQUITY
TOTAL LIABILITIES $ 85,877 $ $ 85,877
TOTAL FUND EQUITY 276,088 320,099 596,187
TOTAL LIABILITIES AND FUND
EQUITY J_361,965 S 320,099 $ 682,064
A -27
Note 10. Continued
PUEBLO CITY - COUNTY HEALTH DEPARTMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year Ended December 31, 1983
Total revenues $ 932,691
Total expenditures 1,859,400
Excess (deficiency) of revenues over
expenditures ( 926,709)
Other financing sources
City of Pueblo 471,390
County of Pueblo 444,390
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER
EXPENDITURES ( 10,929)
Fund balance, January 1 287,017
Fund balance, December 31 S 276,088
In as much as the accounting principles used by the Department correspond
to those used by governmental -type funds, no investment in the joint
venture has been recorded in the accompanying financial statements. In
addition, the joint venture has no debt which would necessitate the
pledging of Department assets as collateral.
Note 11. RETIREMENT PLANS - The City has three retirement plans summarized as
follows:
PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION (PERA)
All employees of the City, with the exception of uniformed police and
firemen, are eligible for membership in the PERA retirement system. The
state -wide plan is under the administration of the Public Employees'
Retirement Board of Colorado and thus, the City's fiduciary responsibility
is limited to remittance of contributions. Employee's contributions are
required and for 1983 was 8.00% of salary. The employer's contribution is
determined on the basis of actuarial valuation and is expressed as a
percentage of salary. For 1983, this percent was 10.20% and this
contribution rate was both the statutory and actuarial funding
requirement. The total City contribution in 1983 was $666,634.
The basic retirement formula is 2.5 percent of final average salary per
year for the first twenty years of service. Final average salary is the
average salary of the highest five consecutive years. Employees earn an
additional one percent per year for each of the second twenty years of
service.
An employee may become eligible for retirement with a minimum of thirty
years of service at age fifty -five.
A -28
Note 11. Continued
FIRE AND POLICE PENSION ASSOCIATION
Effective January 1, 1981, the fiduciary responsibilities of investment,
accountability, and custody of the City of Pueblo Firemen's and
Policemen's pension funds were transferred to the State of Colorado Fire
and Police Pension Association, which was established January 1, 1980.
The terms of this state -wide plan differentiate between those hired before
April 8, 1978 (old hires) and those hired subsequent to that date (new
hires). The Plan stipulates that all full -time paid firemen and policemen
in the state are covered by the death and disability provisions of the
plan and all new hires are covered by the retirement provisions of the
state -wide plan. The old hires had the option of being covered by the
retirement provisions of the state -wide plan or the retirement provisions
of the old plans.
The amounts reported as "net investment in state fire and police pension
plan "and the related" reserve for retirement benefits" represent the
City's share of the net assets available for plan benefits of the
state -wide plan for the old hires who elected to be covered under the
retirement provisions of the old plans.
The net investment in the state fire and police pension plan is summarized
as follows:
City of Pueblo Policemen $ 13,867,343
City of Pueblo Firemen 5,036,375
$ 18,903,718
The amount reported above for the City of Pueblo Policemen includes
$1,276,123 of assets which are being held in a separate account known as
the Transition Asset Pool (TAP) account. This account is used to account
for assets that were transferred to the state -wide plan that met the
following requirements:
A maturity date longer than five years from the time of
transfer
. A return of less than 10% of face value
. A market value of less than 85% of face value
At such time as an asset no longer meets the above requirements, that
asset is transferred to the old hire fund at market value with the
affiliating entity receiving credit.
A summary of the unaudited assets, liabilities, and participants' equity
at December 31, 1983 of the state -wide plan for the old hires is as
follows:
A -29
Note 11. Continued
ASSETS
Cash
Accounts receivable
Accrued interest
Investments, at market
(cost $187,667,891)
TOTAL ASSETS
LIABILITIES AND PARTICIPANTS' INTEREST
Accounts payable
TOTAL LIABILITIES
PARTICIPANTS' INTEREST
TOTAL LIABILITIES AND PARTICIPANTS'
INTEREST
$ 56,081
530,638
2,211,356
196,784,796
$ 199,582,871
2,715,519
2,715,519
196,867,352
$ 199,582,871
Even though the investment, accountability, and custody responsibilities
have been transferred to the state -wide plan, the City retains the
fiduciary responsibility for the retirement benefits for the old hires who
have elected to be covered under the retirement provisions of the old
plans.
The City's contribution for the year ended December 31, 1983 for firemen
hired prior to April 8, 1978 Teas 25.397% of salaries, or $702,462, with
individual firemen contributing 7.0% of their salaries. For firemen hired
subsequent to April 8, 1978, the city contributed 8 %, or $34,458 during
1983 with individual firemen contributing an equal amount.
The City's contribution for the year ended December 31, 1983 for policemen
hired prior to April 8, 1978 was 16.72% of salaries, or $606,861 with
individual policemen contributing 7.0% of their salaries. For policemen
hired subsequent to April 8, 1978, the City contributed 8 %, or $39,574
during 1983 with individual policemen contributing an equal amount.
The latest available actuarially determined unfunded accrued liability of
the City of Pueblo Firemen's and Policemen's Pension fund is, as of
January 1, 1982, $21,031,207 and $8,138,840, respectively. The actuarial
valuation did not separate the unfunded liability between vested and
nonvested benefits.
The unfunded accrued liability was determined by an actuary. The
significant actuarial assumptions used in the valuation as of January 1,
1982 were:
A -30
Note 11. Continued
ACTUARIAL COST METHOD
Individual entry age - normal cost method.
INVESTMENT RETURN
7 1 /2y per annum, compounded annually.
LIFE EXPECTANCY OF PARTICIPANTS
The 1971 Group Annuity Table projected by scale D to 1975, loaded for fire
and police experience.
SALARY INCREASES
5% per annum compounded annually for benefits accrued prior to January 1,
1980; 3% per annum thereafter (maximum permitted by state law); 5% per
annum for full rank escalation which the City has adopted.
RETIREMENT
Age 50 and 20 years of service for firemen and age 55 and 25 years of
service for policemen.
The foregoing actuarial assumptions are based on the presumption that the
city plans will continue. In addition, the City has elected to fund the
accrued service costs over the next 36 years under the "undue initial
hardship" provision as stipulated in Colorado Senate Bill 46 which
established the state -wide plan.
The following is a summary of accumulated plan benefits and plan net
assets at January 1, 1982:
Actuarial present value of accumu-
lated plan benefits
Vested
Nonvested
Total
Net assets available for benefits
POLICE FIRE
$ 11,814,713 $ 15,307,072
2,103,273 5,353,512
$ 13,917,986 $ 20,660,584
$ 9.304.291 $ 3,024 066
The amounts reported above as net asests available for benefits have been
reduced by the amounts that were transferred during 1982 to the new hire
fund for firemen and policemen hired prior to April 8, 1978, who elected
to be covered under the retirement provisions of the state -wide plan.
Note 12. ACCRUED COMPENSATED ABSENCES - In accordance with NCGA Statement 4, the
City has recognized as an expenditure and a liability in the general fund
A -31
Note 12. Continued
the accrued vacation and sick pay that is expected to be liquidated with
available spendable resources. The remaining amount of the unpaid
vacation and sick pay attributable to governmental funds has been
recognized in the general long -term debt account group. The unpaid
vacation and sick pay attributable to proprietary funds has been accrued
in its entirety. The following is a summary of the prior period
adjustment to reflect recognition of this liability for the general fund:
Fund balance, January 1, 1983, as pre-
viously reported $ 10,032,270
Prior period adjustment to record
accrued compensated absences expected
to be liquidated with available
spendable resources ( 176,402
Fund balance, January 1, 1983, as restated $ 9,855,868
The following is a summary of the total unpaid vacation and sick pay that
existed at December 31, 1983:
General fund $ 150,000
Enterprise funds
Memorial Airport 48,895
Sewer User 88,625
Internal Service Funds
City Shops 25,989
General long -term debt account group 1,896,280
Total $ 2,209,789
The total amount of $2,209,789 consists of $1,003,184 vacation pay and
$1,206,605 sick pay.
Note 13. COMMITTMENTS - The following is a summary of the more significant
committments as of December 31, 1983:
In the late 1970's, the City began a major project to separate storm
sewers in various areas of the City, particularly the Downtown area, based
on the directive of the Environmental Protection Agency (EPA). This
project has been completed except for two phases. It is anticipated that
the City will incur additional costs of approximately $1,170,000 in
completing this project with EPA reimbursing the City approximately
$625,000 of the total costs. It is anticipated that these projects will
be completed in 1984.
In conjunction with the above EPA directive, the City was required by EPA
to commit to the construction of a new sewage treatment plant upon
completion of the above sewer separation phase. At the time of this
committment, the City understood that 75% of the construction costs of the
new sewage treatment plan would be financed by the federal government.
A -32
Note 13. Continued
Since that time, the EPA has issued new regulations which will drop the
federal share to 557. As a consequence, it is anticipated that the City's
share of the construction costs will increase by approximately $9 million.
It is anticipated that the City will issue revenue bonds to finance their
share of the construction costs. The revenue bond debt will be serviced
by sewer user charges. At the present time, total construction costs of
the sewage treatment plan are estimated to be $32 million with
construction slated to begin in 1985 or 1986.
In November, 1983, the citizens of the City approved a $5 million dollar
bond issue to upgrade storm sewers in an area around the Colorado State
Fairgrounds. These will be general obligations bonds and will be serviced
by operating transfers from the general fund.
In March, 1984, the Sperry Corporation announced plans to construct a
computer manufacturing facility in an area near the Pueblo Memorial
Airport. As an inducement to the Sperry Corporation to locate in Pueblo,
members of the City Council have, individually, proposed certain financial
incentives to the Sperry Corporation which may require financial
committments on the part 6f the City. At the present time, no formal
agreement has been reached between the City and the Sperry Corporation and
the amount of the City's financial committment, if any, is not known at
this time.
Note 14. DESCRIPTION OF LEASING ARRANGEMENTS - During 1982, the City entered into a
lease agreement for equipment to convert certain police cars to propane
use instead of gasoline use. In accordance with NCGA Statement 5 and FASB
13, this lease is a capital lease and has been capitalized as part of
general fixed assets. The following is a schedule by years of future
minimum lease payments:
Year ended December 31:
1984 $ 35,103
1985 17,551
Total 52,654
Less: amounts representing interest 6,116
Present value of minimum lease payments $ 46,538
No other material operating or capital leases existed at December 31,
1983.
A -33
Note 15. LONG -TERM DEBT - The following is a summary of the changes in all
long -term debt for the year ended December 31, 1983:
Revenue bonds
Parking facilities
Golf course
Sewer, series 1983
A
Special assessments
Obligation under capi-
75,000
10,000
25,000
10,000
3,730,000 75,000
337,296 266,686 291,120
50,000
3,655,000
312,862
tal lease 71,940 25,402 46,538
Total $ 10,680,236 5266,686 S764,522 $ 10182,400
Special assessment bonds, as presented above, are net of unamortized
discount of $29,138 at December 31, 1983.
Bonds payable at December 31, 1983 are comprised of the following
individual issues:
GENERAL OBLIGATION BONDS
$6,700,000 1974 refunding serial bonds due in
annual installments of $20,000 to $510,000
through 1996; interest at 5.50%; this issue is
being serviced by the Refunding Bonds Series B
1974 debt service fund $ 4,665,000
$950,000 1974 recreation serial bonds due in
annual installments of $40,000 to $75,000
through 1994; interest at 4.00% to 7.00 %; this
issue is being serviced by the Downtown Improve-
ment District expendable trust fund
$975,000 1976 general improvement serial bonds
due in annual installments of $28,000 to $140,000
through 1996; interest at 5.40% to 7.00%; this
issue is being serviced by the Downtown Improve-
ment District expendable trust fund
640,000
813,000
$ 6,118,000
A -34
BALANCE
BALANCE
DESCRIPTION
JANUARY 1, 1983 ISSUED
RETIRED
DECEMBER 31, 1983
General obligation
Refunding, Series B
$ 4,935,000 $
$270,000
$ 4,665,000
Ice Rink, Series A
680,000
40,000
640,000
Downtown Improve-
ment
841,000
28,000
813,000
Revenue bonds
Parking facilities
Golf course
Sewer, series 1983
A
Special assessments
Obligation under capi-
75,000
10,000
25,000
10,000
3,730,000 75,000
337,296 266,686 291,120
50,000
3,655,000
312,862
tal lease 71,940 25,402 46,538
Total $ 10,680,236 5266,686 S764,522 $ 10182,400
Special assessment bonds, as presented above, are net of unamortized
discount of $29,138 at December 31, 1983.
Bonds payable at December 31, 1983 are comprised of the following
individual issues:
GENERAL OBLIGATION BONDS
$6,700,000 1974 refunding serial bonds due in
annual installments of $20,000 to $510,000
through 1996; interest at 5.50%; this issue is
being serviced by the Refunding Bonds Series B
1974 debt service fund $ 4,665,000
$950,000 1974 recreation serial bonds due in
annual installments of $40,000 to $75,000
through 1994; interest at 4.00% to 7.00 %; this
issue is being serviced by the Downtown Improve-
ment District expendable trust fund
$975,000 1976 general improvement serial bonds
due in annual installments of $28,000 to $140,000
through 1996; interest at 5.40% to 7.00%; this
issue is being serviced by the Downtown Improve-
ment District expendable trust fund
640,000
813,000
$ 6,118,000
A -34
..- rL.a a+l
Note 15. Continued
REVENUE BONDS
$475,000 1966 parking facilities bonds due in
annual installments of $25,000 through 1985; in-
terest at 4.5 %; this issue is being serviced by
Parking Facilities expendable trust fund $ 50,000
$3,800,000 1981 A sewer revenue bonds due in
annual installments of $75,000 to $435,000
through 2001; interest at 7.75% to 11.625 %;
this issue is being serviced by the Sewer User
enterprise fund
SPECIAL ASSESSMENT BONDS
$63,000 1974 improvement district 73 -5 serial
bonds due in annual installments of $3,000
through 1984; interest at 7.25%
$243,000 1975 improvement district 74 -3 serial
bonds due in annual installments of $11,000 to
$16,000 through 1985; interest at 7.625%
$170,000 1975 improvement district 75 -1 serial
bonds due in annual installments of $8,000 to
$12,000 through 1985; interest at 7.375%
$125,000 1975 improvement district 75 -2 serial
bonds due in annual installments of $8,000
to $12,000 through 1985; interest at 7.375%
$80,000 1975 improvement district 75 -5 serial
bonds due in annual installments of $4,000 to
$5,000 through 1985; interest at 7.125%
$46,000 1975 improvement district 75 -6 serial
bonds due in annual installments of $2,000 to
$3,000 through 1985; interest at 7.375%
$9,000 1975 improvement district 75 -7 serial
bonds due in annual installments of $1,000
through 1984; interest at 7.75%
$96,000 1977 improvement district 76 -4 serial
bonds due in annual installments of $5,000 to
$10,000 through 1987; interest at 7.75%
$12,000 1976 improvement district 76 -6 serial
bonds due in annual installments of $1,000 to
$2,000 beginning in 1984 through 1986; interest
at 7.75%
3,655,000
S 3,705,000
$ 2,984
13,863
15,757
13,879
7,937
3,968
991
26,642
1,973
A -35
Note 15. Continued
$16,000 1976 improvement district 76 -7 serial
bonds due in annual installments of $1,000 be-
ginning in 1984 through 1985; interest at 7.75%
$69,000 1977 improvement district 77 -2 serial
bonds due in an annual installment of $3,000 in
1984; interest at 7.5%
$13,000 1978 improvement district 77 -3 serial
bonds due in annual installments of $1,000
through 1985; interest at 8.0%
$30,000 1977 improvement district 77 -4 serial
bonds due in annual installments of $1,000 to
$3,000 through 1987; interest at 7.5%
$21,000 1978 improvement district 78 -2 serial
bonds due in annual installments of $1,000 to
$2,000 through 1988; interest at 7.5%
$8,000 1978 improvement district 78 -3 serial
bonds due in annual installments of $1,000 be-
ginning in 1985 through 1988; interest at 7.5%
$23,000 1982 improvement district 79 -10 serial
bonds due in annual installments of $3,000 to
$7,000 beginning in 1986 through 1989; interest
at 6.70%
$51,000 1982 improvement district 79 -11 serial
bonds due in annual installments of $3,000 to
$13,000 through 1989; interest at 7.25%
$28,000 1982 improvement district 79 -12 serial
bonds due in annual installments of $3,000 to
$8,000 through 1989; interest at 7.75%
$12,000 1982 improvement district 80 -2 serial
bonds due in annual installments of $1,000 to
$4,000 beginning in 1986 through 1990; interest
at 11.00%
$10,000 1982 improvement district 80 -3 serial
bonds due in annual installments of$1,000 to
$3,000 through 1990; interest at 10.00%
$33,000 1983 improvement district 80 -1 serial
bonds due in annual installments of $2,000 to
$7,000 beginning in 1986 through 1990; interest
at 11.50%
1,985
2,956
1,968
5,905
3,938
17,850
30,821
15,739
7,471
6,318
24,134
A -36
Note 15. Continued
$17,000 1983 improvement district 80 -6 serial
bonds due in annual installments of $1,000 to
$2,000 beginning in 1986 through 1990; interest
at 10.00% 6,695
$15,000 1983 improvement district 80 -8 serial
bonds due in annual installments of $1,000 to
$2,000 beginning in 1986 through 1990; interest
at 11.00% 6,412
$22,000 1983 improvement district 80 -10 serial
bonds due in annual installments of $1,000 to
$6,000 beginning in 1985 through 1990; interest
at 10.00% 19,873
$109,000 1983 improvement district 81 -1 serial
bonds due in annual installments of $2,000 to
$7,000 beginning in 1988 through 1991; interest
at 11.50% 16,093
$51,000 1983 improvement district 81 -2 serial
bonds due in annual installments of $3,000 to
$7,000 beginning in 1985 through 1991; interest
at 11.75% 28,650
$11,000 1983 improvement district 81 -3 serial
bonds due in annual installments of $1,000
beginning in 1987 through 1991; interest at
12.00% 4,708
$20,000 1983 improvement district 82 -1 serial
bonds due in annual installments of $1,000 to
$3,000 beginning in 1984 through 1992; interest
at 12.50% 15,463
$ 312,862
OBLIGATIONS UNDER CAPITAL LEASES
$83,205 capital lease due in annual install-
ments of $35,103 through 1985; interest at
17.0 %; this lease obligation is being serviced
by the Capital Improvement special revenue fund $ 46,538
'� 10
Note 15. Continued
The annual requirements to amortize all debts outstanding as of December
31, 1983, including interest payments of $7,408,102 are as follows:
YEAR ENDING
GENERAL
AMOUNT
SPECIAL
CAPITAL
ISSUED
DECEMBER 31
OBLIGATION
REVENUE
ASSESSMENTS
LEASE
TOTAL
1984
$ 688,130
$ 510,687
$ 72,000
$35,103
$ 1,305,920
1985
684,289
507,963
60,000
17,551
1,269,803
1986
685,341
485,175
51,000
62,000
1,221,516
1987
686,124
486,863
49,000
$ 594,000
1,221,987
1988
684,587
482,412
42,000
1,208,999
1989 -1993
3,427,728
2,418,500
68,000
5,914,228
1994 -1998
1,598,285
2,421,106
4,019,391
1999 -2001
1,458,069
1,458,069
Total
$8,454,484
$8,770,775
$ 342,000
52 _
$17,619,913
Legal debt margin for the year ended December 31, 1983 was $21,908,402.
City Council has authorized the issuance of the following special
assessment bonds which remain unissued at December 31, 1983:
There are a number of limitations and restrictions contained in the
various bond indentures. The City is in compliance with all significant
limitations and restrictions.
Note 16. INDIVIDUAL INTERFUND RECEIVABLES AND PAYABLES - A summary of the
individual interfund receivables and payables is as follows:
AMOUNT
AMOUNT
IMPROVEMENT DISTRICT
AUTHORIZED
ISSUED
75 -7
$ 10,000
$ 9,000
76 -4
193,000
96,000
76 -6
20,000
12,000
77 -3
24,000
13,000
79 -10
128,000
23,000
79 -11
86,000
51,000
79 -12
58,000
28,000
80 -2
62,000
12,000
80 -3
13,000
10,000
$ 594,000
S 254,000
There are a number of limitations and restrictions contained in the
various bond indentures. The City is in compliance with all significant
limitations and restrictions.
Note 16. INDIVIDUAL INTERFUND RECEIVABLES AND PAYABLES - A summary of the
individual interfund receivables and payables is as follows:
447 .257
DUE TO
n mrr r.•r. r
$ 474,600
99,180
40,964
84,908
3,229
469,274
$ 1,172,155
A -38
DUE FROM
GENERAL FUND
OTHER FUNDS
Special Revenue
$ 94,467
Capital Projects
104,588
Special Assessments
29,258
Enterprise
51,991
Internal Service
57,520
Trust and Agency
109,433
447 .257
DUE TO
n mrr r.•r. r
$ 474,600
99,180
40,964
84,908
3,229
469,274
$ 1,172,155
A -38
Note 16. Continued
SPECIAL REVENUE FUNDS
Capital Improvement
Federal Revenue Sharing
Community Development
Highway Users
Council of Governments
Regional Planning Commission
Pueblo Human Resources
Urban Transportation Plan
Pueblo Energy Extension
Area Aging Agency
Emergency Jobs Bill
Head Start
DUE FROM DUE TO
GENERAL FUND GENERAL FUND
$ 75,257
68,600
9,918
280,994
7,452
5,479
5,226
3,999
5,772
11,903
474.600
S 99 ,180
21,173
73,294
$ 94,467
DUE TO
GENERAL FUND
11,566
51,131
5,542
36,349
�_ 104,588
A -39
DUE FROM
CAPITAL PROJECTS FUNDS
GENERAL FUND
E.D.A. Airport Interchange
$ 4,588
Sewer System Construction
Fund
47
U.M.T.A. Facilities Grant
40,037
U.M.T.A. Bus Stop Equipment
49,754
Sewer Bonds
4,754
Keeler Parkway Extention
Airport Development
U.M.T.A. Bus Grant
Land, Water Conservation
S 99 ,180
21,173
73,294
$ 94,467
DUE TO
GENERAL FUND
11,566
51,131
5,542
36,349
�_ 104,588
A -39
Note 16. Continued
SPECIAL ASSESSMENT FUNDS
DUE FROM DUE TO
GENERAL FUND GENER FUND
73 -5
$ 2,411
$
74 -3
2,828
75 -1
67
75 -2
358
75 -5
214
75 -6
208
76 -4
925
76 -6
274
76 -7
179
77 -2
1,680
77 -3
1,135
77 -4
4,186
78 -1
1,211
78 -2
1,835
78 -3
1,351
79 -10
613
79 -11
1,834
79 -12
1,125
79 -16
1,286
80 -1
4,447
80 -2
3,349
80 -3
872
80 -6
1,577
81 -1
3,393
81 -2
3,051
81 -3
232
Surplus and deficiency
323
78 -4
1,136
79 -3
915
79 -9
4,060
80 -3
11,968
80 -10
10,966
82 -1
129
83 -2
84
$ 40,964 $ 29.258
A -40
Note 16. Continued
ENTERPRISE FUNDS
Golf Course
Memorial Airport
Ice Arena
Sewer User
Swimming Pools
Public Transportation
Cemetary
INTERNAL SERVICE FUNDS
DUE FROM
DUE TO
GENERAL FUND
GENERAL FUND
$ 451
$
3,233
56,312
11,877
13,035
31,324
20,667
$ 84,908
$ 51,991
DUE FROM
DUE TO
GENERAL FUND
GENERAL FUND
Transportation Services
City Shops
TRUST AND AGENCY FUNDS
Downtown Improvement
Leidigh Park Trust
Housing Rehabilitation Program
Housing Rehabilitation Escrow
Parking Facilities
Conservation Trust
Park Land Escrow
Pre -need Cemetary Services
Sam Jones Trust Fund
Deposits and Clearing
Mountain View Cemetary
Endowment
Restoration of Carousel
$ 3,229
$ 3,229
DUE FROM
GENERAL FUND
$
57,520
S 57,520
DUE TO
GENERAL FUND
$ 5,749 $
786
151,675
73,230
59
219
64,808
822
505
171,421
105,633
3,800
$ 469,274
X109,433
Note 17• FUND EQUITY - Certain portions of fund equity have been reserved that
represent funds that are not available for appropriation in the
subsequent year. In addition, the City has designated portions of their
unreserved fund equity for certain subsequent years' eqpenditures which
can be appropriated in future years. The following is a description of
these reserves and designations at December 31, 1983:
A -41
Note 17. Continued
RESERVATIONS OF RETAINED EARNINGS
Reservations of retained earnings are summarized as follows:
Reserve for warrant fund -golf
course bonds $ 80,429
Reserve for warrant sinking fund -
golf course bonds 20,231
Reserve for operations -sewer
revenue bonds 90,000
Reserve for bonds -sewer revenue
bonds 440,000
$ 630,660
The warrant fund and sinking fund reserves were created by ordinance to
provide for the accumulation of funds and annual payments for debt
retirement of golf course improvement bonds. The sinking fund agreement
stipulates that the golf course must transfer $17,000 per year to the
sinking fund for payment of the principal and interest on the revenue
bonds.
The operations and bond reserve of the sewer revenue bonds was created as
part of the issuance of the 1981 A series sewer revenue bonds in
accordance with the bond indenture. The total of the reserves has been
invested in a U.S. treasury note maturing in 1984.
RESERVATIONS OF FUND BALANCES
Reserve for S.I.D. mill levy
The bond agreements for the various special improvement districts
provide that a mill levy is to be assessed upon the taxable property
within the city. By City Charter, the total levy from all districts
cannot exceed two mills in any one year. The purpose of the levy is
to provide funds, if the district cannot, for current payments of
interest and bond principal. The City Charter provides that, in lieu
of such tax levies, the city council may annually t•ransf.er any
available money, limited to the amount which would result from such a
tax levy. The reserve fund provides the amount needed to meet the
bond agreement requirements after reflecting funds available in
special assessments accounts.
Reserve for inventory
A reserve equal to the inventory on hand at December 31, 1983, is
provided to reflect the recording of inventories under the purchase
method.
Reserve for encumbrances
Encumbrances outstanding at year end are reported as reservations of
fund balances since they do not constitute expenditures or
liabilities.
A -42
� ;,11'I II II Ip IHI�! N1�1!I�
Note 17. Continued
UNRESERVED FUND BALANCES - DESIGNATIONS
Designated for subsequent years' expenditures
The City designates certain portions of its unreserved fund balances
for future expenditures based on city council plans for future use.
These designations, however, are only estimates and may change due to
unforseen circumstances.
Note 18. PRIOR PERIOD ADJUSTMENTS - The following is a summary of the prior period
adjustments for individual funds which affect beginning fund balances
that have not been described in other notes to the financial statements:
ENTERPRISE FUNDS
Regional Building
Department $ L ,39 0 $ 47,390
A -43
FUND BALANCE
(DEFICIT)
FUND
BALANCE
JANUARY 1, 1983
(DEFICIT)
SPECIAL
AS PREVIOUSLY
PRIOR
PERIOD
JANUARY
1 1983
ASSESSMENT FUNDS
REPORTED
ADJUSTMENT
AS
RESTATED
73 -5
$ 3,523
$(
5,559)
;(
2,036)
74 -3
4,298
(
11,584)
(
7,286)
75 -1
( 13,434)
(
9,513)
(
22,947)
75 -2
( 6,015)
(
13,070)
(
19,085)
75 -5
( 5,779)
(
3,794)
(
9,573)
75 -6
( 2,549)
(
2,555)
(
5,104)
75 -7
( 1,178)
(
160)
(
1,338)
76 -4
( 5,561)
(
11,858)
(
17,419)
76 -6
1,895
(
2,366)
(
471)
76 -7
103
(
861)
(
758)
77 -2
3,907
(
2,591)
1,316
77 -3
2,591
(
3,626)
(
1,035)
77 -4
4,524
(
11,642)
(
7,118)
78 -1
2,381
(
313)
2,068
78 -2
2,864
(
5,033)
(
2,169)
78 -4
548
(
1,850)
(
1,302)
Surplus and deficiency
287,525
(125,468
162,057
$ 279,643
$(211,843
$
67,800
ENTERPRISE FUNDS
Regional Building
Department $ L ,39 0 $ 47,390
A -43
Note 18. Continued
The prior period adjustment for the special assessment funds represents
the adjustment necessary to record the amount of deferred assessment
revenues that existed at December 31, 1982 for improvement districts
created prior to the effective date of NCGA Statement 1. This adjustment
was made so as to comply with NCGA Statement 1. The improvement
districts created subsequent to the effective date of NCGA Statement 1
have been accounted for in accordance with generally accepted accounting
principles.
The prior period adjustment for the Regional Building Department
represents the adjustment necessary to record the City's 84% investment
in the Regional Building Department joint venture. The remaining 16% is
held by the County of Pueblo, Colorado who is the other participant in
the joint venture.
Note 19. CAPITAL CONTRIBUTIONS - A summary of the capital contributions by
individual fund for the year ended December 31, 1983 is as follows:
SPECIAL REVENUE FUNDS
Capital Improvement $ 799,738
CAPITAL PROJECTS FUNDS
U.M.T.A. Facilities Grant $ 2,059
U.M.T.A. Bus Grant 7,191
Airport Development 446,858
$ 456,108
These amounts represent resources expended in these funds which are
contributions of capital to certain enterprise funds. As such, they do
not constitute expenditures of these funds and are reported as a direct
reduction of fund balance.
Note 20. EQUITY TRANSFERS - The following is a summary of individual funds that
were closed during 1983:
SPECIAL ASSESSMENT FUNDS
73 -1
$ 25,395
73 -2
6,805
75 -4
8,980
77 -5
6,839
83 -1
( 597
$ 47 ,422
These fund balances were closed to the surplus and deficiency special
assessment fund.
A -44
Note 21• SEGMENT INFORMATION FOR ENTERPRISE FUNDS - The City maintains seven
enterprise funds which provide golf, airport, ice rink facilities,
transportation, sewer, swimming pools and cemetary services. In
addition, the City is a participant in a joint venture with the County of
Pueblo, Colorado in the Regional Building Department which is accounted
for using the equity method of accounting. Segment information for the
year ended December 31, 1983 is as follows:
GOLF MEMORIAL ICE PUBLIC
COURSE AIRPORT ARENA TRANSPORTATION
Operating revenues $ 485,038 $ 462,240 $ 151,745 $ 304,974
Operating expenses,
excluding depreciation 463,043 713,210 363,495 1,121,564
Depreciation 22,772 147,585 33,363 225,484
Operating income (loss) ( 777) ( 398,555) ( 245,113) ( 1,042,074)
Nonoperating revenues
(expenses)
Operating grants
Equity in income (loss) of
joint venture
Interest income
Other
Interest and fiscal charges
Income (loss) before operating
transfers
Operating transfers
In
NET INCOME (LOSS)
Contributed capital
Property, plant and
equipment
Net additions
Construction in progress
Net working capital
Revenue bonds payable
Payable from operating rev -
venues
TOTAL EQUITY
410,809
19,475 33,376
( 15,500)
( 475
74
24,461
18,223 ( 380,679) ( 245,113) ( 606,730)
310,766 243,436 381,245
$ 18,223 $- 69,913 $ ( 1,677 $ 225,485
401,197 6,758,702 1,395,275 4,272,305
34,393 193,520 12,170
927,861
213,378 583,975 56,114
678,267 6,740,370 1,228,265
11,875
2,059
85,925
3,048,854
A -45
Note 21. Continued
Operating revenues
Operating expenses, exclud-
ing depreciation
Depreciation
Operating income (loss)
Non- operating revenues
(expenses)
Operating grants
Equity in income (loss) of
joint venture
Interest income
Other
Interest and fiscal
charges
Income (loss) before oper-
ating transfers
Operating transfers
In
NET INCOME (LOSS)
Contributed capital
Property, plant and
ecuipment
,et additions
Construction in progress
`Net working capital (deficit)
Revenue bonds payable
Payable from operating
revenues
REGIONAL
SEWER SWIMMING BUILDING
USER POOLS CEMETARY DEPARTMENT TOTAL
$2,640,073 $ 82,497 $ 98,993 $
1,547,234 342,340 207,308
30,174 21,094 3,860
1,062,665 (280,937) (112,175)
$ 4,225,560
4,758, 194
484,332
(1,016,966)
410,809
274,303
( 2,266) ( 2,266)
327 , 228
8,961
( 411,104
( 411,579
925,864 (280,937) (112,175) ( 2,266) ( 683,813)
288,000 119,703 1,343,150
$ 925_,864 $ 7,063 $ 7,528 $_L___2,266
230,777 556,319 45,998 27,203 13,687,776
192,815 562,818 65,929 1,073,520
475,113 1,405,033
2,783,262 21,658 ( 8,543) 3,735,7--9
3,655,000 3,655,000
TOTAL EQUITY 80,244 563,382 53,526 72,327 12,465,235
Note 22. CONTINGENCIES - The following is a summary of the more significant
contingencies that existed at December 31, 1983:
The City is the defendent in several lawsuits for damages and claims,
principally in connection with police actions, accidents on city property
and employment related personnel actions. It is not known to what extent
the City may be liable, if at all, for amounts in excess of insurance
coverage until trial or settlement of the various suits. In the opinion
of the city attorney, personal injury claims pendit:g against the city arc-
adequately insured.
A -46
Note '_2. Continued
Under the terms of Federal and state grants, periodic audits are required
and certain costs may be questioned as not being appropriate expenditures
under the terms of the grants. Such audits could lead to reimbursement
to the grantor agencies. City management believes disallowances, if any,
will be immaterial.
Note 23. RECONCILIATIONS - As discussed in Note I(E), only certain special revenue
funds have adopted annual budgets. These funds include Capital
Improvement, Federal Revenue Sharing, Community Development, Highway
Users and Pueblo Area Council of Governments. Only these funds have been
included on the combined statement of revenues, expenditures and changes
in fund balances - budget (GAAP basis) and actual, as shown on page 5. The
remaining special revenue funds generally consist of federally- funded
projects for which annual appropriations are not made but are governed by
project budgets established by the appropriate funding agency. These
funds include Regional Planning Commission, Pueblo Human Resources, Urban
Transportation, Pueblo Energy Extension, Department of Highways,
Emergency Jobs Bill, Head Start, E.P.A. Water Study and Area Aging
AGency. The following is a reconciliation of the actual revenues,
expenditures, other sources and uses and changes in fund balances between
the combined statement of revenues, expenditures and changes in fund
balances as reported on page 4 and the combined statement of revenues,
expenditures and changes in fund balances - budget (GAAP basis) and actual
as reported on page 5:
A -47
Note 23. Continued
FUNDS NOT REPORTED
FUNDS REPORTED ON
TOTAL
ON
BUDGET STATEMENT
BUDGET STATEMENT
REPORTED
ON PAGE 5
O N PAGE 5
O PAGE 4
Revenues
Taxes
$
$ 459,630
$ 459,630
State and federal
grants
1,205,259
4,120,217
5,325,476
Revenue from other
agencies
5,000
843,056
848,056
Interest income
2,253
105,730
107,983
Project income
596,291
596,291
Matching revenue
501,975
501,975
;Miscellaneous
( 43,357
62,205
_ 18,040
Total revenues
2,267,421
5,590,838
7,858,259
Expenditures
Programs and
projects
2,318,923
391,949
2,710,872
Matching expendi-
tures
386,312
386,312
Capital outlay
3,182,011
3,182,011
'.Von- capital expendi-
tures
( 19,297)
726,136
706,839
Principal retire -
ment
25,402
25,402
Interest and
fiscal charges
9,701
9,701
Other services
and charges
15,734
15,734
Total expenditures
2,701,67
4,33
7,036,871
Excess (deficiency)
of revenues over
expenditures
( 434,251)
1,255,639
821,388
Other financing sources
(uses)
Operating transfers in
319,500
5,141,346
5,460,846
Operating transfers out
(4,313,463
(4,313,463
Total other financing
(uses)
319,500
827,883
1,147,383
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND
OTHER USES
( 114,751)
2,083,522
1,968,771
Fund balances (deficit),
January 1
126,599
2,625,203
2,751,802
Capital contributions
( 799,738
( 799,738
Fund balances (deficit),
December 31
X
- $ - 3 L 908,987
$3,920 835
,;