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12-31-2018 ERFPD CAFR December 31, 2017 FinalEagle River Fire Protection District Eagle County, Colorado         Comprehensive Annual Financial Report For the Year Ended December 31, 2017         Eagle River Fire Protection District Administration 90 Benchmark Road, Suite 101 Post Office Box 7980 Avon, Colorado 81620 EAGLE RIVER FIRE PROTECTION DISTRICT EAGLE COUNTY, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 Prepared by: Administrative Staff EAGLE RIVER FIRE PROTECTION DISTRICT LIST OF ELECTED AND APPOINTED OFFICIALS December 31, 2017 BOARD OF DIRECTORS Clint Janssen, Chairperson Al Bosworth, Vice Chair Darell Wegert, Treasurer John Halloran, Secretary Cindy Moran, Assistant Secretary/Treasurer MANAGEMENT Karl Bauer, General Manager and Fire Chief Kristen Nash, Human Resources Director Jessica Costabile, Finance Director INDEPENDENT AUDITORS Hamblin and Associates, LLC Certified Public Accountants Golden, Colorado i EAGLE RIVER FIRE PROTECTION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 TABLE OF CONTENTS INTRODUCTION Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Organization Chart FINANCIAL SECTION Report of Independent Auditor Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Statement of Net Position – Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds Statement of Cash Flows – Proprietary Funds Notes to the Financial Statements Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund Notes to Required Supplemental Information Other Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Debt Service Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances – Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Impact Fee Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances – Capital Impact Fee Fund Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances – Capital Projects Fund Page iii-viii ix x 1-2 3-12 14 15 16-17 18-19 20 21 22 24-41 43 44 46 47 48 49 50 51 EAGLE RIVER FIRE PROTECTION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 TABLE OF CONTENTS - CONTINUED ii Other Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Equipment Replacement Fund STATISTICAL SECTION Net Position by Component Changes in Net Position Changes in Fund Balances, Governmental Funds Fund Balances, Governmental Funds Tax Revenues by Source, Governmental Funds Capital Impact Fees Collected Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Tax Payers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Ratio of General Bonded Debt Outstanding and Legal Debt Margin Direct and Overlapping Governmental Activities Debt Demographic and Economic Statistics Principal Employers Full-time Equivalent Employees by Function / Program Operating Indicators by Function / Program Capital Asset Statistics by Function / Program Page 52-53 56-57 58-59 60-61 62 63 64 65 66 67 68 69 70-71 72 73 74 76-77 78-79 80-81 iii April 19, 2018 To the Citizens and Board of Directors of the Eagle River Fire Protection District: Colorado state statutes require all special districts with revenues in excess of $500,000 to publish, within seven months following the close of their fiscal year, a complete set of financial statements. State statutes further require that such presentation conform to generally accepted accounting principles (GAAP), and be audited in accordance with generally accepted auditing standards by a firm of licensed independent certified public accountants. Pursuant to this requirement, we hereby issue this Comprehensive Annual Financial Report (CAFR) of the Eagle River Fire Protection District (the “District”) for the fiscal year ended December 31, 2017. The CAFR contains the following three sections: Introduction; Financial (comprised of the independent auditor’s report, basic financial statements and required supplementary information, and combining and individual fund financial statements and schedules); and, Statistical. Because the CAFR consists of management’s representations concerning the District’s finances, management assumes full responsibility for the completeness and reliability of all the information presented herein. To provide a reasonable basis for making these representations, District management has established a comprehensive internal control framework, designed to protect the District’s assets from loss, theft, or misuse, and compile sufficient reliable information for the preparation of the District’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls provides reasonable rather than absolute assurance that the financial statements contain no material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. To reasonably assure they contain no material misstatement, the District retained Hamblin and Associates, a firm of independent certified public accountants, to audit its financial statements for the fiscal year ended December 31, 2017. On a test basis, the independent auditor examined evidence of the amounts and disclosures in the financial statements; assessed the accounting principles employed, and significant estimates made by management; and, evaluated the overall financial statement presentation. Based upon their audit, the independent auditor rendered an unqualified opinion that the Eagle River Fire Protection District has fairly presented in conformity with GAAP its financial statements for the fiscal year ended December 31, 2017. Letter of Transmittal Eagle River Fire Protection District, Colorado April 19, 2018 iv Required by GAAP, the CAFR also contains a narrative of the District’s basic financial statements and required supplementary information in the form of Management’s Discussion and Analysis (MD&A). Readers may find this MD&A immediately following the independent auditors report. Written to complement, and not replace, the MD&A, this transmittal letter provides an overall profile of the District; a brief discussion of factors that affect District finances; an overview of its current initiatives; and, a review of some of the awards it has received. Profile of the District A quasi-municipal corporation and political subdivision of the State of Colorado, the Eagle River Fire Protection District received authorization in 2000 to merge twelve municipal and metropolitan district fire protection entities into a single regional fire district. The primary purpose of the Eagle River Fire Protection District is to provide fire suppression, rescue, emergency medical treatment, hazardous materials response, fire prevention and public education to District residents, businesses, visitors, and taxpayers. The District’s boundaries encompass a physical area of approximately 186 square miles in Eagle County; a majority of which the federal government owns. The total non-federal land served by the District totals approximately 76 square miles, and includes the Towns of Avon, Minturn and Red Cliff, along with the communities of Arrowhead, Bachelor Gulch, Cordillera, Eagle-Vail, Edwards, and portions of Wolcott. The District serves an estimated resident population of approximately 29,000 (based on United States census data), but this population increases significantly during the summer and winter tourist seasons. Additionally, the District serves the Beaver Creek Metropolitan District, including Beaver Creek Resort, pursuant to an Agreement for Fire Protection and Emergency Services. Pursuant to the Special District Act, a Board of Directors, consisting of five members, governs the District. Board members must qualify as eligible electors of the District and reside in one of five wards as defined by State law. Elected in staggered biennial elections, each member serves a four-year term and may serve a total of two successive terms. Should a vacancy occur within a given term, remaining Board members may fill the open Board seat by appointment. In such cases the appointed Board member may serve their appointed seat until the next regular election, at which time the seat will become open to election for any remaining unexpired portion of the original term. The Board has responsibility for the overall management and administration of the District including policy making, budget adoption, long-range planning, and hiring the District’s General Manager/Fire Chief who oversees the District’s day-to-day operations. Letter of Transmittal Eagle River Fire Protection District, Colorado April 19, 2018 v Directors hold regular Board meetings on the third Thursday of each month, and may schedule special meetings as needed. Each Director is entitled to one vote on all questions before the Board, provided a quorum is present. The District operated four staffed fire stations and one reserve fire station used to house equipment and periodically provide modest residences to employees; and, employed 63 uniformed and 5 administrative personnel at year-end. The District also partially staffed and operated a fifth station located outside district boundaries, under a multi- year contract with the Beaver Creek Metropolitan District. The annual budget serves as the foundation for the District’s financial planning and control. No later than October 15th, the General Manager/Fire Chief must submit to the Board of Directors a proposed budget for the calendar year that will commence the following January 1st. Organized by fund, program, activity and line item, the annual budget includes information on the prior year, current year budget, year-end estimates, and requested appropriations and estimated revenues for the upcoming year. The Board must cause publication of notice that the public may inspect the proposed budget prior to its adoption. Also prior to its adoption, any elector of the District may object to the proposed budget during a budget hearing held by the District Board of Directors. The District must adopt its budget by passing a corresponding appropriation resolution prior to December 15th in order to certify its mill levy for collection in the following year. In general, the District may not expend money in excess of the amount appropriated. However, in the case of an emergency or contingency not reasonably foreseeable, the Board may authorize the expenditure of funds in excess of the budget by adopting a resolution. If the District receives revenues not anticipated at the time of budget adoption, the Board may authorize the expenditure of such revenues by adopting a supplemental budget after providing public notice and holding a budget hearing. To facilitate financial analyses of high fidelity, the CAFR provides budget to actual comparisons for all funds, constituting a level of detail greater than required by law. Factors Affecting Financial Condition Numerous economic factors combine to influence the District’s financial condition. Insomuch as the local economy exercises a large effect on District finances, readers will likely gain a more complete understanding of the District’s financial condition if they consider its financial statements from the perspective of broad economic drivers rather than just the annual budget by which the District operates. Local Economy. Year-round tourism and winter recreation-related businesses account for a significant portion of the employment and earned income of area residents. Vail Letter of Transmittal Eagle River Fire Protection District, Colorado April 19, 2018 vi and Beaver Creek Resort, operated by Vail Resorts, are two of the most popular winter destination ski resorts and rank among the top 10 Best Ski Resorts in North America according to zrankings.com. In addition to skiing and associated winter-time activities, the area promotes a number of summer recreational pursuits. Popular summer activities include hiking, horseback riding, bicycling, kayaking and rafting; and, several communities within Eagle County have earned recognition on TravelandLeisure.com’s list of the top 100 golfing communities in which to live, as well as other recreational sports. Property Values. Property tax, which derives from the application of a mill rate to assessed property values, represents approximately eighty-one percent of the District’s total revenues. Assessed values depend on a combination of market value and growth of real property, along with assessment ratios established by the State legislature. In 2012, District voters approved a supplemental mill levy restoring the District’s property tax revenues to 2010 levels, adjusted annually for inflation and local growth and designed to decrease as assessed values increase. In 2016, District voters approved a debt increase, and an increase in taxes up to $1,300,000 annually, to pay debt for capital improvements that included the Avon Public Safety Facility, Edwards Fire Station and Training Facility Projects. In 2017, in accordance with the Gallagher Amendment, the residential assessment rate (RAR) decreased from 7.96 to 7.20. The Gallagher Amendment requires the residential assessment rate to adjust to maintain a constant relationship between the statewide share of residential taxable value and the statewide share of non-residential taxable value. Recent forecasts by the Colorado Legislate Council predicts the RAR will decrease again from 7.20 to 6.11 in 2019. It is believed by staff and Legal Counsel that the 2012 Supplemental Mill Levy language removed the District from the negative effects of the Gallagher Amendment for the 2017 valuations and 2018 property tax revenues. Current Initiatives Long-term Financial Planning. At least annually, District staff and consultants update the District’s long-range financial projections. Management and the Board of Directors regularly review these projections, ensuring integration of their implications into the annual budget process. Capital Projects. Avon Public Safety Facility. In 2017, the District, in partnership with the Town of Avon, completed construction on the Avon Public Safety Facility. The Avon Public Letter of Transmittal Eagle River Fire Protection District, Colorado April 19, 2018 vii Safety Facility houses both the Fire District and Avon Police Department operations, and will enable the Fire District and the Avon Police Department to serve the community and surrounding region with greater effectiveness. Edwards Fire Station and Training Facility. Designed to replace the original Edwards Fire Station, constructed in 1985, the District began construction of a new Edwards Fire Station, essentially on the same site as the current Edwards Fire Station, but also on the adjacent Tract K, which it acquired in 2016. Additionally, and with the purpose of enabling its firefighters to train on mission-critical skills while remaining in-District and available for emergency response, the District will construct a training facility next to the new Edwards Fire Station. The District expects to complete construction of both projects by 2019. The 2017 budget focused on staffing its four operational fire and emergency response stations, and the Beaver Creek Metropolitan District Fire Station, on a 24/7 basis, retaining personnel and increasing its number of fire prevention and community risk management personnel in order to rebuild its Prevention Bureau, coordinate wildfire mitigation projects, and develop community wildfire education strategies. In order to encourage employee retention and remain an attractive employer when compared to fire departments of similar size and complexity, the District continued to implement conservative payroll adjustments. Moving forward, the District will evaluate the most cost effective ways to further address payroll inequities and keep its operational stations fully staffed. Strategic Planning. Along with comprehensive financial planning, the District has begun the process of developing a strategic plan. As a foundation for this strategic plan, District personnel have conducted an assessment of the various risks facing the communities it serves (e.g. wildfire), data from which the District will use to determine the degree to which it meets the current service demands of each community. As part of this planning effort, the District will also assess predictions for future growth, and the potential impacts such growth may have on service demands in the coming years. By assessing current and potential future service requirements, the District will enhance its ability to match service to risk and anticipate where gaps in service levels could develop over time. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended December 31, 2016. In order to receive a Certificate of Achievement, the District must publish an easily readable and efficiently organized CAFR, satisfying both GAAP and applicable legal requirements Letter of Transmittal Eagle River Fire Protection District, Colorado April 19, 2018 viii this latest recognition the GFOA constituted the eighth year in a row that the District received the Association’s prestigious award. A Certificate of Achievement is valid for a period of one year. Management believes its current CAFR continues to meet the Certificate of Achievement Program’s requirements, and will submit it to the GFOA for consideration of yet another certificate. Without a doubt, the successful preparation of this report depended heavily on the professional and dedicated service of District administrative staff. I express my sincere appreciation to all members of the District who contributed to the preparation of this report, and offer due credit to the Board of Directors, whose support and leadership ensures the District serves the public responsibly and progressively. Respectfully submitted, Karl Bauer General Manager/Fire Chief Board of Directors General Manager/Fire Chief HR HR Director Finance Finance Director Fire Prevention Div. Chief/Fire Marshal Assistant Fire Marshal Community Risk Management Community Risk Manager Wildfire Mitigation Specialist Planning and Logistics Div. Chief Operations Beaver Creek (Contract) Station 11 Edwards Station 12 Cordillera-Chaveno Station 15 Avon Station 7 Training Legal Counsel CPA Minturn Station 5 B Shift Battalion Chief C Shift Battalion Chief A Shift Battalion Chief Lieutenant Engineer Firefighter Firefighter Lieutenant Engineer Firefighter Firefighter Lieutenant Engineer Lieutenant Engineer Firefighter Firefighter Unstaffed Eagle River Fire Protection District 2018 Organizational Structure Cordillera-Summit Station 16 Lieutenant Engineer Firefighter Firefighter Hamblin and Associates, LLC Certified Public Accountants Member of the American Institute of Certified Public Accountants 23720 Pondview Place Golden, CO 80401 (303) 694-2727 1 Board of Directors Eagle River Fire Protection District Eagle County, Colorado INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Eagle River Fire Protection District as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Eagle River Fire Protection District as of December 31, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison schedules on pages 3 through 12 and 43 through 44 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Eagle River Fire Protection District’s basic financial statements. The introductory section, comparative statements of revenue, expenditures, and changes in fund balances, and budgetary comparison schedules for the Capital Impact Fee Fund, Debt Service Fund, Equipment Replacement Fund, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The comparative statements of revenue, expenditures, and changes in fund balances and budgetary comparison schedules for the Capital Impact Fee Fund, Debt Service Fund, and Equipment Replacement Fund are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Hamblin and Associates Golden, Colorado March 9, 2018 3 Management’s Discussion and Analysis As Management of Eagle River Fire Protection District (the “District”), we offer readers of the District’s financial statements this discussion and analysis of the financial activities of the District for the fiscal year ended December 31, 2017. The Management’s Discussion and Analysis (MD&A) should be read in conjunction with the District’s basic financial statements. Financial Highlights  The assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows of resources at the close of its fiscal year ended December 31, 2017 by $9,086,860 (net position). Of this amount, ($7,597,995) is unrestricted and may be used to meet the District’s ongoing obligations to citizens and creditors in accordance with the District’s fund designation and fiscal policies as more fully described below. The unrestricted portion is negative due to unspent bond proceeds if all the bond proceeds were spent at year the unrestricted portion would be a positive $4,966,030.  The District’s total net position increased by $1,282,534.  As of the close of the fiscal year, the District’s governmental funds reported combined fund balances of $18,316,055, a decrease of $6,396,677 in comparison to the prior year. Approximately twenty-four percent of this amount ($4,431,414) is available for spending at the District’s discretion (unassigned fund balance).  At the end of the current fiscal year, unassigned fund balance for the general fund represents 46% of 2017 total general fund expenditures.  The District’s total long-term debt increased by a net $19,833 during the current fiscal year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the District’s assets, liabilities, and deferred inflows/outflows with the difference reported as net position. Over time, 4 increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the District that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The functions of the District include fire protection and emergency medical services and are considered as entirely governmental activities. The District has no business-type activities. The government-wide financial statements can be found on pages 14-15 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District are categorized as governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund, capital projects fund, and the capital impact fee fund, all of which are presented as major funds. 5 Proprietary funds. Proprietary funds are used to account for business-like operations where goods or services are provided to the general public for a fee (enterprise fund), or to account for goods or services provided by one department or agency of a government to another department or agency on a cost-reimbursement basis (internal service fund). District maintains one internal service fund as a proprietary fund. The District uses an internal service fund to account for the rental of vehicles and equipment to District departments for the accumulation of funds for future replacement. Because the internal service fund serves only governmental activities this fund is included in governmental activities in the government-wide financial statements. The basic governmental fund financial statements can be found on pages 16-22 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 24-41 of this report. Required Supplemental Information. In addition to the basic financial statements and accompanying notes, this report also presents certain other required supplemental information. The District adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with the budget and can be found on page 43 of this report. Other Supplemental Information. Individual fund statements and schedules can be found on pages 46-53 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $9,086,860 as of December 31, 2017. There are three components of net position Net Investment in Capital Assets, Restricted and Unrestricted. The following table shows the three components and their change in 2017. 2017 2016 Increase Restated (Decrease) Net Position: Net Investment in Capital Assets 2,835,864 3,245,913 (410,049) Restricted 13,848,991 21,055,209 (7,206,218) Unrestricted (7,597,995) (16,496,796) 8,898,801 6 Net investment in capital assets decreased ($410,049) from the prior year. This is primarily due to depreciation exceeding asset additions not funded through bond proceeds. The District uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must come from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted portion of Net Position represents resources that are subject to external restrictions on how they may be used and include amounts restricted for emergencies and debt service. The largest portion of restricted net position is unspent bond proceeds of $12,564,025. The restricted portion went down by ($7,206,218) primarily due to the spending of bond proceeds in 2017. The restricted component of net position of governmental activities may not equal to restricted fund balances in governmental funds due to a difference in measurement focus and basis of accounting. The remaining portion of net position is unrestricted and may be used to meet the District’s on going obligations to citizens and creditors. The unrestricted portion of net position increased $8,898,801 because unspent bond proceeds were used in 2017. The negative balance in unrestricted net position is caused by unspent bond proceeds. Had all the bond proceeds been spent in 2017 the unrestricted net position would have increased by $12,564,025 and been a positive $4,966,030. Condensed Net Position 2017 2016 Restated Current and Other Assets $15,900,824 $13,991,211 Restricted Assets 14,423,731 21,952,883 Capital Assets 16,642,235 9,324,702 Total Assets 46,966,790 45,268,796 Deferred Outflows of Resources 28,319 29,297 Current and Other Liabilities 2,557,229 1,976,849 Noncurrent Liabilities 25,364,143 25,849,240 Total Liabilities 27,921,372 27,826,089 Deferred Inflows of Resources 9,986,877 9,667,678 Net Position: Net Investment in Capital Assets 2,835,864 3,245,913 Restricted 13,848,991 21,055,209 Unrestricted (7,597,995)(16,496,796) Total Net Position $9,086,860 $7,804,326 7 Changes in Net Position 2017 2016 REVENUES Program Revenues: Charges for Services $ 1,237,312 $ 1,228,536 General Revenues: Property and Specific Ownership Taxes 10,172,267 8,535,709 Intergovernmental 308,993 346,389 Unrestricted Investment Earnings 268,378 114,145 Miscellaneous 33,122 88,147 Refunding Escro w Gain (Loss ) on Disposal of Capital Assets 15,744 Total Revenues 12,020,072 10,328,670 EXPENSES Program Expenses: Fire Protection – Operations 10,073,768 9,617,772 Interest on Long-term Debt 658,718 400,400 Bond Issuance Costs 5,052 223,966 Total Expenses 10,737,538 10,242,138 Change in Net Position 1,282,534 86,532 Net Position, Beginning of Year 7,804,326 7,717,794 Net Position – End of Year $ 9,086,860 $ 7,804,326 Governmental Activities During 2017, the District’s net position increased by $1,282,534 to $9,086,860. A substantial part of the net position increase, $612,463 was anticipated because the original budget projected an increase of $286,611 plus expenditure savings in all operating departments in the general fund and increased revenues of $325,852 in the following funds: Original Actual Increase Budget General Fund 135,294 421,738 286,444 Capital Impact Fee 135,232 155,075 19,843 Debt Service Fund 16,085 35,650 19,565 286,611 612,463 325,852 Excess Revenues Over Expenditures The differences in how and when revenues and expenditures are recognized in the government wide financial statements and fund financial statements had an impact on the amount of increase in the net position as shown on page 19. 8 Expenses and Program Revenues – Governmental Activities The District’s program revenues primarily come from a service charge to the Beaver Creek Metropolitan District for fire services since the Beaver Creek Metro District is not in the District’s boundaries a property tax cannot be assessed. The balance of the program expenditures are funded through property tax revenues collected from properties in the areas served. Therefore program revenues of $1,237,312 make up 12.28% of the program expenditures of $10,073,768. General Revenues by Source – Governmental Activities Financial Analysis of Governmental Funds The following schedule presents a summary of governmental fund revenues for the year ended December 31, 2017, and the amount and percentage of increases and decreases in relation to the prior year. Amount of 2017 Percent of 2016 Increase Percent Revenues Amount Total Amount (Decrease)Increase Taxes $10,172,267 85.70%$8,535,709 $1,636,558 19.17% Licenses and Permits 36,013 0.30% 59,957 (23,944)-39.94% Intergovernmental 164,219 1.38% 213,103 (48,884)-22.94% Charges for Services 1,201,299 10.12% 1,168,579 32,720 2.80% Investment Earnings 262,068 2.21% 110,918 151,150 136.27% Miscellaneous 33,122 0.28% 88,147 (55,025)-62.42% Total $11,868,988 100.00%$10,176,413 $1,692,575 Property Taxes 81.45% Specific Owership Tax 4.26% Charges for Services 10.12% Intergovernmental 1.68% Misc. &Interest 2.49% 9 Compared to 2016, total revenues increased by $1,692,575 in 2017. The substantial increase in taxes can be attributed to a new debt service mill levy, approved by voters in 2016 and implemented in 2017, which generated $1,368,112 to fund the debt service on the General Obligation Bonds, Series 2016. The balance of the increase in property tax revenue can be attributed to the supplemental mill levy approved by voters in 2012, restoring property tax revenues to 2010 levels and adjusted annually for inflation and local growth. Taxes include property taxes and specific ownership tax collections and account for 85.71% of total revenues. Property tax revenues increased by $223,195 or 2.7%, and specific ownership tax collections which increased $45,251 or an 11.5% over 2016. Total net assessed values of all property within the District decreased by $1,653,010 from the previous year to $992,574,640, causing the aforementioned voter approved mill levy to automatically increase from 8.205 mills to 8.431 mills, generating the allowed revenue increase. Intergovernmental revenues decreased by $48,884 or 22.94% in 2017 primarily due to a decrease in reimbursements for deployments, and conclusion of the Intergovernmental Agreement Concerning the Cooperative Use of a Training Chief. Impact fee revenues increased by $24,862 or 18.59% over 2016. Investment earnings increased in 2017 by $151,150 or 136.27% due to an increase in cash and cash equivalents from the bond proceeds received in 2016. Miscellaneous revenues decreased by $55,025 from 2016 primarily due to fewer construction projects and less one-time revenues collected in 2017. The following schedule presents a summary of governmental fund expenditures for the year ended December 31, 2017 and the amount and percentage of increases and decreases in relation to the prior year. Amount of Percent 2017 Percent of 2016 Increase Increase Expenditures Amount Total Amount (Decrease)(Decrease) Operating: Support Services $1,947,759 10.26% $1,912,998 $34,761 1.82% Operations 6,978,627 36.77% 6,628,447 350,180 5.28% Health, Wellness And Safety 146,080 0.77% 122,130 23,950 19.61% Fire Prevention and Risk Management 357,865 1.88% 346,519 11,346 3.27% Total Operating 9,430,331 49.68% 9,010,094 420,237 4.66% Debt Service: Principal 496,717 2.62% 381,945 114,772 30.05% Interest, Bond Issue & Fiscal Charges 1,142,247 6.02% 365,817 776,430 212.25% Capital Outlay 7,912,035 41.68% 3,344,466 4,567,569 136.57% Total $18,981,330 100.00% $13,102,322 $5,879,008 10 Overall, operating expenditures increased a total of $420,237 or 4.66% from 2016 largely due to increases in wages and benefits. Debt service expenditures increased in 2017 due to the initial debt service payments on the General Obligation Bonds, Series 2016. Capital outlays increased in 2017 due to the use of the bond proceeds to build the new facilities. Fund Balances The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by an external party, the District, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the District’s Board of Directors. As of the end of the current fiscal year, the District’s governmental funds reported a combined ending fund balances of $18,316,055, a decrease of $6,396,677 in comparison with the previous year. The planned use of $7,912,035 in bond proceeds to build new facilities was the primary reason for this decrease. Excluding the capital projects fund where bond proceeds were used there was a combined increase of $1,328,128 in governmental fund balances. The unassigned fund balance that can be used for any lawful purpose is $4,431,414. General Fund. The general fund constitutes the main operating fund of the District. As a measure of the general fund’s liquidity, it may be useful to compare the unassigned fund balance and total fund balance to total fund expenditures and other financing sources. Unassigned fund balance represents approximately forty-six percent of total general fund expenditures, or 5 months of operations. This fulfills a Board objective of ensuring adequate funds for maintaining emergency response capabilities during challenging economic conditions or large-scale disasters. The general fund had an increase of $1,137,403 in fund balance during the current fiscal year. The major contributor for this increase is $697,164 in unspent lease proceeds received for acquiring a new fire truck. Capital Impact Fee Fund. The capital impact fee fund had an increase of $155,075 in fund balance during the current fiscal year, which put its restricted fund balance at $616,143 as of December 31, 2017. The increase in fund balance was planned and in accordance with the 2017 budget. Debt Service Fund. The debt service fund is maintained to account for the repayment of the General Obligation Bonds, Series 2016. Property taxes are levied annually to pay such debt. The restricted fund balance as of December 31, 2017 is $35,650. 11 Capital Projects Fund. The capital projects fund had a restricted fund balance of $12,564,025, a decrease of $7,724,805 in comparison to the prior year due to continued construction of facilities with proceeds from the General Obligation Bonds, Series 2016. During 2017, investment earnings of $187,230 were received and $7,912,035 was expended for capital and construction in progress. General Fund Budgetary Highlights Original budget compared to final budget. The Board approved a supplemental budget amendment during the year, increasing overall estimated revenues and other sources by $774,360 and increasing appropriations by $183,676. Final amended budget compared to actual. Actual revenues were $42,182 higher than the final amended budget. While there was a reduction in licenses and permits and charges for services, the District did receive a positive variance in taxes, intergovernmental and miscellaneous revenues. Actual expenditures were $367,452 less than the final amended budget. The District realized a savings in Support Services and Operations. The savings was primarily related to personnel services as a result of staff vacancies. Savings was also recognized in commodities, external services and other operating costs such as small tools and equipment, fuel, repairs and maintenance and other professional services. Capital Assets and Debt Administration Capital Assets. The District’s investment in capital assets at December 31, 2017 totals $16,642,235 net of accumulated depreciation. This investment in capital assets includes land, buildings and improvements, construction in progress, vehicles and equipment. Capital assets in the amount of $8,027,695 were purchased or constructed during the year. Capital assets are classified as follows (net of depreciation): 2017 2016 Land $1,540,485 $1,540,485 Buildings and Improvements 10,136,491 1,951,366 Construction in Progress 2,582,314 3,136,973 Machinery and Equipment 429,347 517,365 Vehicles and Rolling Stock 1,953,598 2,178,513 Total $16,642,235 $9,324,702 Additional information on the District’s capital assets can be found in Note 4 on page 33 of this report. 12 Long-term Liabilities. As of December 31, 2017, the District’s outstanding long-term liabilities totaled $26,602,601. Total debt is made up of the following; $24,849,487 in General Obligation Bonds, Series 2016 (including a bond premium of $1,579,487) which were issued to finance new facilities and defease outstanding certificates of participation, capital lease obligations of $1,549,228, and compensated absences of $203,886. The District’s long term liabilities increased by $19,833 during the current fiscal year. The District had lease proceeds of $697,164 in 2017 to acquire a new fire truck. Colorado State statutes limit the amount of general obligation debt the District may issue to 50% of assessed valuation of all taxable property within the District. The current legal debt margin for the District is $508,082,910. Additional information on the District’s long-term debt can be found in Note 5 on pages 33-36 of this report. Economic Factors and Next Year’s Budgets and Rates The District’s net total assessed valuation in 2017 (effective for taxes collectible in 2018) increased by $23,591,180 to a total value of $1,016,165,820, a 2.38% increase from the previous year. The 2018 budget includes the aforementioned 2012 voter-approved adjustable supplemental mill levy in addition to the District’s base rate of 5.55 mills. In 2018, the District’s mill rate for general operating purposes will increase from the current 8.404 mills, including the base rate of 5.55 mills, to 8.533 mills. As designed, the supplemental mill levy has increased from its previous amount of 2.854 mills to 2.983 mills. The District anticipates this will result in a 2018 net property tax revenue increase of $329,345 from 2017. In addition to the general operating mill levy, the District elected to certify an abatement/refund mill levy of 0.014 mills in order to recapture $14,226 in 2017 property tax abatements identified by the Eagle County Assessor. The 2018 budget also reflects the debt and associated mill levy approved by voters in May 2016 for the debt service on the General Obligation Bonds, Series 2016. The District’s mill levy for debt service is 1.281. The amount budgeted for this revenue in 2018 is $1,301,708 which includes $2,032 in property tax abatements identified by the Eagle County Assessor. The 2018 budget focuses on meeting ongoing service demands through 24/7 staffing of the District’s four operational fire and emergency response stations and the Beaver Creek Metropolitan District station which it partially staffs by contract, retaining personnel, and prioritizing essential capital needs. Requests for Information This financial report is designed to provide a general overview of the District’s finances for all those with an interest therein. Questions concerning any of the information provided in this report or requests for additional information should be addressed to: Karl Bauer, General Manager and Fire Chief, Eagle River Fire Protection District, P.O. Box 7980, Avon, Colorado 81620. 13 THIS PAGE INTENTIONALLY LEFT BLANK 14 EAGLE RIVER FIRE PROTECTION DISTRICT STATEMENT OF NET POSITION DECEMBER 31, 2017 Total Governmental Activities ASSETS Cash and Cash Equivalents 5,347,790$ Receivables (net)10,071,766 Other Assets 392,116 Prepaid Expenses 89,152 Restricted Assets - Cash and Cash Equivalents 14,423,731 Capital Assets, net of accumulated depreciation Nondepreciable 4,122,799 Depreciable 12,519,436 Total Assets 46,966,790 DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on Advance Refunding of Debt 28,319 LIABILITIES Accounts Payable 1,042,068 Accrued Liabilities 143,752 Accrued Interest Payable 92,701 Deposits and Reserves 5,250 Unearned Revenue 35,000 Noncurrent Liabilities: Due Within One Year 1,238,458 Due In More Than One Year 25,364,143 Total Liabilities 27,921,372 DEFERRED INFLOWS OF RESOURCES Deferred Revenue - Property Taxes 9,986,877 NET POSITION Net Investment in Capital Assets 2,835,864 Restricted For: Capital Improvements 13,492,922 Emergencies 356,069 Unrestricted (7,597,995) Total Net Position 9,086,860$ The accompanying notes are an integral part of the financial statements. 15 EAGLE RIVER FIRE PROTECTION DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2017 Total Governmental Activities Expenses Fire Protection: Support Services 1,947,759$ Operations 7,622,064 Health, Wellness and Safety 146,080 Fire Prevention and Community Risk Management 357,865 Debt Service: Bond Issuance costs 5,052 Interest 658,718 Total Expenses 10,737,538 Program Revenues Charges for Services 1,237,312 Total Program Revenues 1,237,312 Net Program Expense 9,500,226 General Revenues Property and Specific Ownership Taxes 10,172,267 Intergovernmental 308,993 Investment Earnings 268,378 Miscellaneous 33,122 Total General Revenues 10,782,760 Change in Net Position 1,282,534 Net Position, Beginning of Year 7,804,326 Net Position, End of Year 9,086,860$ The accompanying notes are an integral part of the financial statements. 16 EAGLE RIVER FIRE PROTECTION DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2017 Debt Capital Capital General Service Impact Fee Projects Fund Fund Fund Fund Total ASSETS Cash and Cash Equivalents 4,641,389$ -$ -$ -$ 4,641,389$ Receivables: - Taxes 8,721,129 1,307,291 - - 10,028,420 - Intergovernmental - - 2,670 - 2,670 - Accounts 40,676 - - - 40,676 Deposits 392,116 - - - 392,116 Restricted Assets - Cash and Cash Equivalents 312,754 30,067 613,473 13,467,437 14,423,731 Total Assets 14,108,064$ 1,337,358$ 616,143$ 13,467,437$ 29,529,002$ LIABILITIES AND FUND BALANCES Accounts Payable 138,656$ -$ -$ 903,412$ 1,042,068$ Accrued Liabilities 143,752 - - - 143,752 Deposits and Reserves 5,250 - - - 5,250 Unearned Revenues 35,000 - - - 35,000 Total Liabilities 322,658 - - 903,412 1,226,070 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 8,685,169 1,301,708 - - 9,986,877 FUND BALANCES Restricted For: Debt Service - 35,650 - - 35,650 TABOR Emergency Reserve 356,069 - - - 356,069 Capital Improvements 312,754 - 616,143 12,564,025 13,492,922 Unassigned 4,431,414 - - - 4,431,414 Total Fund Balances 5,100,237 35,650 616,143 12,564,025 18,316,055 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 14,108,064$ 1,337,358$ 616,143$ 13,467,437$ 29,529,002$ The accompanying notes are an integral part of the financial statements. 17 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2017 Total Fund Balances - Governmental Fund 18,316,055$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund balance sheet. Capital Assets 21,585,526 Accumulated Depreciation 5,413,826 16,171,700 Prepaid expenses, losses on refundings, and bond premiums are reflected as current charges or revenue in the governmental fund financial statements. On the Satement of Activities these costs are capitalized and amortized over the life of the bonds. Loss on Refundings 28,319 Prepaid Expenses - Bond Insurance 89,152 Bond Premium (1,579,487) (1,462,016) Some liabilities, including bonds, leases payable, and compensated absences are not due and payable in the current period and therefore are not reported in the fund balance sheet. General Obligation Bonds Payable (23,270,000) Capital Leases (1,549,228) Compensated Absences (203,886) (25,023,114) Accrued interest payable is recognized for governmental activities, but is not due and payable in the current period and therefore is not reported as a liability in the governmental funds.(92,701) The internal service fund is used by management to charge the rental cost of certain vehicles and equipment to individual departments. The assets and liabilities of the internal service fund is included in governmental activities in the statement of net position.1,176,936 Net Position of Governmental Activities 9,086,860$ 18 EAGLE RIVER FIRE PROTECTION DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Debt Capital Capital General Service Impact Fee Projects Fund Fund Fund Fund Total Revenues Taxes 8,804,155$ 1,368,112$ -$ -$ 10,172,267$ Licenses and Permits 36,013 - - - 36,013 Intergovernmental 5,629 - 158,590 - 164,219 Charges for Services 1,201,299 - - - 1,201,299 Investment Earnings 64,603 4,235 6,000 187,230 262,068 Miscellaneous 33,122 - - - 33,122 Total Revenues 10,144,821 1,372,347 164,590 187,230 11,868,988 Expenditures Current: Support Services 1,899,462 38,782 9,515 - 1,947,759 Operations 6,978,627 - - - 6,978,627 Health, Wellness and Safety 146,080 - - - 146,080 Fire Prevention and Community Risk Mgmt.357,865 - - - 357,865 Debt Service:- - - - - Principal 316,717 180,000 - - 496,717 Interest 24,332 1,116,915 - - 1,141,247 Fiscal Charges - 1,000 - - 1,000 Capital Outlay - - - 7,912,035 7,912,035 Total Expenditures 9,723,083 1,336,697 9,515 7,912,035 18,981,330 Excess (Deficiency) of Revenues Over (Under) Expenditures 421,738 35,650 155,075 (7,724,805) (7,112,342) Other Financing Sources (Uses) Capital Lease Proceeds 697,164 - - - 697,164 Disposition of Capital Assets 18,501 - - - 18,501 Total Other Financing Sources (Uses)715,665 - - - 715,665 Net Change in Fund Balances 1,137,403 35,650 155,075 (7,724,805) (6,396,677) Fund Balances, Beginning of Year 3,962,834 - 461,068 20,288,830 24,712,732 Fund Balances, End of Year 5,100,237$ 35,650$ 616,143$ 12,564,025$ 18,316,055$ The accompanying notes are an integral part of the financial statements. 19 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2017 Net change in fund balances - Total Governmental Funds (6,396,677)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, for governmental activities, those capital outlays other than noncapitalizable items are shown in the Statement of Activities and the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Assets Sold or Retired (19,107) Capital Outlay 7,990,842 Depreciation (566,148) 7,405,587 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated Absences (18,033) Bond Issue Costs (4,052) Amortize Bond Premium 198,648 176,563 Repayment of principal on debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. General Obligation Bonds 180,000 Capital Lease Principal Payments 316,717 496,717 In the Statement of Activities, interest is accrued on outstanding bonds, whereas in governmental funds, an interest expenditure is reported when due.283,881 Proceeds revceived from issuance of debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Activities.(697,164) The internal service fund is used by management to charge the rental cost of certain vehicles and equipment to individual departments. The increase in net position of the internal service fund is included in governmental activities.13,627 Change in Net Position of Governmental Activities 1,282,534$ 20 EAGLE RIVER FIRE PROTECTION DISTRICT STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2017 Governmental Activities - Internal Service Fund ASSETS Current Assets: Cash and Cash Equivalents 706,401$ Total Current Assets 706,401 Capital Assets: Machinery and Equipment 1,163,017 Accumulated Depreciation (692,482) Net Capital Assets 470,535 Total Assets 1,176,936 LIABILITIES Current Liabilities:- Total Current Liabilities - Noncurrent Liabilities - Total Liabilities - NET POSITION Net Investment in Capital Assets 470,535 Unrestricted 706,401 Total Net Position 1,176,936$ The accompanying notes are an integral part of the financial statements. 21 EAGLE RIVER FIRE PROTECTION DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Governmental Activities - Internal Service Fund Operating Revenues: Charges for Services 144,774$ Total Operating Revenues 144,774 Operating Expenses Support Services 12,548 Depreciation 124,910 Total Operating Expenses 137,458 Operating Income 7,316 Non-Operating Revenues: Investment Earnings 6,311 Change in Net Position 13,627 Net Position, Beginning of Year 1,163,309 Net Position, End of Year 1,176,936$ The accompanying notes are an integral part of the financial statements. 22 EAGLE RIVER FIRE PROTECTION DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Governmental Activities - Internal Service Fund Cash Flows From Operating Activities Cash Received from Interfund Services Provided 144,774$ Cash Paid for Goods & Services (12,548) Net Cash Provided by Operating Activities 132,226 Cash Flows From Capital and Related Financing Activities Purchase of Capital Assets (36,853) Net Cash Provided (Used) by Capital and Related Financing Activities (36,853) Cash Flows From Investing Activities Interest received 6,311 Net Cash Provided by Investing Activities 6,311 Net Increase in Cash and Cash Equivalents 101,684 Cash and Cash Equivalents, Beginning of Year 604,717 Cash and Cash Equivalents, End of Year 706,401$ Operating Income 7,316$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation 124,910 Total Adjustments 124,910 Net Cash Provided by Operating Activities 132,226$ The accompanying notes are an integral part of the financial statements. RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 23 THIS PAGE INTENTIONALLY LEFT BLANK 24 EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 The financial statements of Eagle River Fire Protection District (the “District”) have been prepared in conformity with generally accepted accounting principles (“GAAP”) as applied to governmental entities. The Governmental Accounting Standards Board (“GASB”) is the accepted standard- setting board for establishing governmental accounting and financial reporting principles. The following notes are an integral part of the District’s Comprehensive Annual Financial Report (“CAFR”). Note 1. Summary of Significant Accounting Policies A. Financial Reporting Entity The District, a quasi-municipal corporation was organized on May 2, 2000, and is governed pursuant to provisions of the Colorado Special District Act. The District’s service area is located in Eagle County, Colorado. The District was established for the purpose of providing fire suppression, fire protection, emergency medical, rescue, and hazardous materials response to its residents and taxpayers. The District follows GASB accounting pronouncements, which provide guidance for determining which governmental activities, organizations, and functions should be included within the financial reporting entity. GASB pronouncements set forth the financial accountability of a governmental organization’s elected governing body as the basic criterion for including a possible component governmental organization in a primary government’s legal entity. Financial accountability includes, but is not limited to, appointment of a voting majority of the organization’s governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens and fiscal dependency. The District is not financially accountable for any other organization, nor is the District a component unit of any other primary governmental entity. B. Government-wide and Fund Financial Statements Government-wide Financial Statements. The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the activities of the District. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 25 Fund Financial Statements. The fund financial statements provide detailed information about the District’s funds. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds are presented as separate columns in the governmental fund financial statements. The District’s single internal service fund is presented in a single column on the face of the proprietary fund statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement Focus and Basis of Accounting. The government-wide financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. This is the same approach used in the preparation of the proprietary fund financial statements. Revenues are recognized when earned and expenses are recognized when the liability is incurred regardless of the timing of related cash flows. Depreciation is computed and recorded as an operating expense. Expenditures for property, plant and equipment are shown as increases in assets and redemption of capital lease obligations are recorded as a reduction in liabilities. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, which is typically 60 days. The major sources of revenue which are susceptible to accrual are property taxes and certain miscellaneous revenues. Expenditures generally are recorded when the liability is incurred, as under full accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Financial Statement Presentation – Fund Accounting. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts which are segregated for the purpose of accounting for specific activities. The District uses funds to report results of operations and financial position, and demonstrate compliance with legal, contractual and regulatory requirements. The District reports the following major governmental funds:  General Fund - This is the District’s primary operating fund. It is used to account for all activities and financial resources of the District not required to be accounted for in another fund.  Capital Impact Fee Fund – This fund accounts for the accumulation of resources from the District’s emergency services impact fee and the use of these resources for capital expenditures associated with service level demands related to growth within the District.  Debt Service Fund – This fund is used to account for the accumulation of resources and payment of principal and interest on the District’s bonded indebtedness.  Capital Projects Fund – This fund was created in 2016 to account for the bond proceeds and related project costs of the new facilities. EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 26 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues are charges to customers for sales and services. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The District’s only proprietary fund is the Equipment Replacement internal service fund. This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. D. Capital Assets Capital assets, which include land, buildings, and certain equipment, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial individual cost of more than $5,000 and an estimated useful life of more than one year. Such assets are recorded at cost if purchased or constructed. Donated capital assets are recorded at acqusition value at the date of donation. Major outlays for capital improvement projects are capitalized as projects are completed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation of property, plant and equipment is computed using the straight-line method over the following estimated useful lives: Buildings and Facilities 10-30 years Vehicles and Rolling Stock 3-17 years Machinery and Equipment 3-10 years E. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The District has only one type of item that qualifies for reporting in this category. Accordingly, the item, Deferred Loss on Advance Refunding of Debt, is reported in the government-wide statement of net position. These amounts are deferred and recognized as an outflow of resources in the period that the amounts become expendable. 27 In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has only one type of item that qualifies for reporting in this category. Accordingly, the item, unavailable revenue – property taxes, is reported in the government-wide statement of net position and in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. F. Compensated Absences It is the District’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the District does not have a policy to pay any amounts when employees separate from service with the District. All vacation pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The General Fund has been the fund used in prior years to liquidate the liability for compensated absences. G. Fund Equity The following fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:  Nonspendable fund balance – amounts that are not in a spendable form (such as inventory or prepaid/deferred charges) or are required to be maintained intact;  Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation;  Committed fund balance – amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint;  Assigned fund balance – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or an official or body to which the governing body delegates the authority;  Unassigned fund balance – amounts that are available for any purpose; positive amounts are reported only in the general fund. The District establishes (and modifies or rescinds) fund balance commitments by passage of a resolution. This is typically done through adoption and amendment of the budget. A fund balance commitment is further indicated in the budget document as a designation or commitment of the fund. Assigned fund balance is established by the Board of Directors through adoption or EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 28 amendment of the budget as intended for specific purpose (such as the purchase of fixed assets, construction, debt service, or other purposes). When fund balance resources are available for a specific purpose in more than one classification, it is the District’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. The District considers all unassigned fund balances to be “reserves” for future operations or capital replacement as defined within Article X, Section 20 of the Constitution of the State of Colorado (see Note 8). The Board of Directors has adopted a minimum fund balance policy for the general fund which requires the District to maintain an unassigned fund balance sufficient to fund District operations for a period of three months. Unassigned fund balance shall be calculated annually with the adoption of the annual budget and is calculated as 25% of the District’s general fund operating expenditures excluding capital budgeted for that fiscal year. H. Budgetary Information Budgets are adopted on a basis consistent with GAAP for all funds. According to Colorado Local Government Budget Law, the legal level of appropriation is at the total fund expenditure level and lapse at year-end. During the year, the District’s Board of Directors may modify the budget by line item within a fund’s total appropriation without notification. Upon meeting notification and publication requirements, supplemental amendments increasing appropriations may be passed by resolution of the Board of Directors. I. Property Taxes Property taxes are levied by the District’s Board of Directors. The levy is based on assessed valuations determined by the Eagle County Assessor generally as of January 1, of each year. The levy is normally set by December 15, by certification to the Eagle County Commissioners to place the tax lien on the individual properties as of January 1, of the following year. The Eagle County Treasurer collects the determined taxes during the ensuing calendar year. Taxes are payable by April 30, or if at the taxpayer’s election paid in equal installments, by February 28 and June 15, respectively. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. The County Treasurer remits the taxes collected monthly to the District. Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred inflows of resources in the year they are levied and measurable. The deferred property tax revenues are recorded as revenue in the year they are available or collected. 29 J. Restricted Assets The following funds have restricted assets: General Fund 312,754$ Capital Impact Fee Fund 613,473 Capital Projects Fund 13,467,437 Debt Service Fund 30,067 14,423,731$ General Fund. Lease proceeds are being held in escrow account until the truck is available for delivery. Capital Impact Fee Fund. Colorado State statutes and the District’s resolution establishing the Capital Impact Fee Fund require that impact fees collected be accounted for in a separate fund. Capital Projects Fund. The use of the bond proceeds are restricted by the bondholders. Debt Service Fund. The General Obligation Bonds, Series 2016 restricts assets for debt service payments. These assets are held in a separate interest-bearing account in COLOTRUST. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted, as they are needed. K. Statements of Cash Flows For purposes of the Statement of Cash Flows, the District considers all highly liquid investments with a maturity when purchased of three months or less and all local government investment pools to be cash equivalents. L. Long-term Obligations In the government-wide Statement of Net Position, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the interest method. Bonds payable are reported net of any applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 30 costs, whether or not withheld from the actual debt proceeds are reported as debt service expenditures. Note 2. Deposits and Investments Cash and investments as of December 31, 2017 are classified in the accompanying financial statements as follows: Govermental Proprietary Total Funds Funds Cash and Cash Equivalents $ 4,641,389 $ 706,401 $ 5,347,790 Restricted Assets – Cash and Cash Equivalents 14,423,731 - 14,423,731 Total $ 19,065,120 $ 706,401 $ 19,771,521 Deposits With Financial Institutions $ 443,341 $ - $ 443,341 Deposits With Local Government Investment 18,621,779 706,401 19,328,180 Total $ 19,065,120 $ 706,401 $ 19,771,521 Investments Authorized by District Investment Policy. The table below identifies the investment types that are authorized for the District by its investment policy. The table also identifies certain provision of the District’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage Of Portfolio Maximum Investment In One Issuer U.S. Treasury Obligations Federal Agency Securities Federal Instrumentality Securities Local Government Investment Pools Money Market Funds Time Certificates of Deposit 5 years 5 years 5 years N/A N/A 1 year None None None None None None None None None None None None Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair market value to changes in market interest rates. The investment policy of the District states that, to the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. Unless matched to a specific cash flow requirement, the District will not invest in securities maturing more than five years from the date of purchase. In addition, the District shall maintain at least 15% of its total investment portfolio in investments maturing in 120 days or less. At least 10% of the portfolio shall be invested in overnight investments or securities that can be sold to raise cash on one day’s notice. 31 Credit Risk. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. U.S Treasury securities and securities of the Government National Mortgage Association are not considered to have credit risk exposure. Nor are obligations implicitly guaranteed by the U.S. government for government sponsored entities such as securities the Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association. Presented below is the minimum rating, as required by the District’s investment policy, for investments of the District as of December 31, 2017. S&P Rating Local Government Investment Pool AAAm $19,328,180 Concentration of Credit Risk. The investment policy of the District contains no limitations on the amount that can be invested in any one issuer. Custodial Credit Risk. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the District would not be able to recover its deposits or would not be able to recover collateral securities that are in the possession of an outside party. The Colorado Public Deposit Protection Act (PDPA) requires that cash be deposited in eligible public depositories and that deposits in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds with the District being a named participant in the single institution collateral pool. The minimum pledging requirement is 102% of the uninsured deposits. The Colorado State Banking Board verifies the market value at least monthly. Bank assets (usually securities) are required by PDPA to be delivered to a third-party institution for safekeeping, and pledged to the Colorado Division of Banking. Based on the above, the Colorado State Auditor has concluded that there is no custodial risk for public deposits collateralized under PDPA. Investments. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the District would not be able to recover the value of its investment or collateral securities that are in the possession of another party. The District’s investment policy provides that all investment securities, except certificates of deposit, local government investment pools, and money market funds purchased by the District shall be settled on a delivery versus payment basis and will be delivered by either book entry or physical delivery and will be held in third-party safekeeping by the District’s approved custodian bank, its correspondent bank or the Depository Trust Company. An approved Safekeeping Agreement must be executed with each custodian bank prior to utilizing that bank’s safekeeping services and to be eligible, a financial institution must have an average Highline Banking Data Services Rating of 40 or better. EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 32 Local Government Investment Pools. Local government investment pools are trusts established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the trusts. The trusts operate similarly to a money market fund and each share is equal in value to $1.00. A designated custodial bank serves as custodian pursuant to a custodian agreement. The custodian acts as safekeeping agent for the trusts’ investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by the trusts. As of December 31, 2017, the District held investments in the Colorado Local Government Liquid Asset Trust (COLOTRUST). COLOTRUST offers shares in two portfolios, Prime and Plus. Both portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. COLOTRUST Plus may also invest in certain obligations of U.S. government agencies, highest rated commercial paper and repurchase agreements collateralized by certain obligations of U.S. government agencies. At December 31, 2017, the District had a balance of $19,328,180 for both its fair value and carrying value in the COLOTRUST Plus portfolio. Both portfolios are rated AAAm by Standard & Poor’s. In addition, at December 31, 2017, the District had $41,542 held by the Eagle County Treasurer. Note 3. Legal Compliance – Budgets No later than October 15th, the General Manager/Fire Chief submits to the Board of Directors a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, program, activity, and object and includes information on the prior year, current year estimates and requested appropriations and estimated revenues for the upcoming year. The Board of Directors holds public hearings and must adopt the budget by resolution prior to December 15th. Once adopted, the Board may at any time, by resolution, amend the budget. The District had one supplemental appropriations during the year ended December 31, 2017. Expenditures may not legally exceed budgeted appropriations at the fund level. Budgetary comparisons in the accompanying combined financial statements and in the individual fund statements are presented with a higher level of detail than legally required in order to facilitate closer financial analysis. 33 Note 4. Capital Assets Capital asset activity for the year ended December 31, 2017, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 1,540,485 $ - $ - $ 1,540,485 Construction in Progress 3,136,973 2,184,301 2,738,960 2,582,314 Total Capital Assets, Not being Depreciated $ 4,677,458 $2,184,301 $2,738,960 $ 4,122,799 Capital Assets, Being Depreciated: Buildings and Improvements 3,862,638 8,466,694 200,649 12,128,683 Machinery and Equipment 1,007,893 22,646 34,823 995,716 Vehicles and Rolling Stock 5,552,017 93,014 143,685 5,501,346 Total Capital Assets, Being Depreciated 10,422,548 8,582,354 379,157 18,625,745 Less Accumulated Depreciation: Buildings (1,911,272) (262,465) 181,545 (1,992,192) Machinery and Equipment (490,528) (110,664) 34,823 (566,369) Vehicles and Rolling Stock (3,373,504) (317,929) 143,685 (3,547,748) Total Accumulated Depreciation (5,775,304) (691,058) 360,053 (6,106,309) Total Capital Assets Being Depreciated, Net 4,647,244 7,891,296 739,210 12,519,436 Governmental Activities Capital Assets, Net $ 9,324,702 $ 10,075,597 $ 3,478,170 $ 16,642,235 Depreciation expense in the amount of $691,058 was charged to the operations function in the Statement of Activities for the year ended December 31, 2017. Of this amount, amortization expense on assets acquired under existing capital leases was $171,636. Note 5. Long-term Debt General Obligation Bonds. On July 26, 2016, the District issued $23,450,000 in General Obligation Bonds. The proceeds from the bond issuance were used to refund the outstanding Certificates of Participation, Series 2015 and to acquire land, build new fire stations in Avon and Edwards, construct a training facility and to pay costs of issuing the bonds. The interest rate on the bonds is variable from 2% to 4%. Interest on the bonds is payable semiannual on June 1 and December 1, commencing on June 1, 2017 and ending on December 1, 2046. The bonds constitute a general obligation of the district of which all of the taxable property in the district is subject to an ad valorem tax to pay principal and interest on the bonds. The bonds maturing on or after December 1, 2027 are subject to redemption prior to maturity. The bonds maturing on December 1, 2036, 2041 and 2046 are subject to a mandatory sinking fund redemptions at a redemption price equal to the principal amount of such bonds redeemed plus accrued interest to the redemption date without a redemption premium. The bonds are insured by the Assured Guaranty Municipal Corp. (AGM). The property tax revenue assessed for bond payments may not exceed $1,300,000 in any EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 34 year. The bonds were issued at a premium of $1,778,135. The outstanding bond premium is $1,579,487 and $198,648 of premium was amortized in 2017. Total interest expense on General Obligation Bonds in the amount of $628,235 was charged to expense in the Statement of Activities for the year ended December 31, 2017. Annual debt service requirements to maturity for the General Obligation Bonds outstanding at December 31, 2017, are as follows: Year Ending December 31 Principal Interest 2018 470,000 825,450 2019 480,000 816,050 2020 500,000 796,850 2021 515,000 781,850 2022 535,000 761,250 2023-2027 3,015,000 3,467,450 2028-2032 3,680,000 2,813,450 2033-2037 4,335,000 2,147,850 2038-2042 5,030,000 1,456,650 2043-2046 4,710,000 480,400 Total General Obligation Bonds $ 23,270,000 $ 14,347,250 Governmental Activities Capital Lease Obligations. The following leases are renewable on an annual basis, at the option of the District, for consecutive one year periods. Upon final payment, title to the leased assets will pass to the District. The gross amount of assets acquired under existing capital leases is $2,468,668. Accumulated amortization on these assets total $1,054,170 at December 31, 2017. All of the accumulated amortization falls within the asset class of vehicles and rolling stock. Vehicle Lease Lease Annual Interest Balance Leased Begin Date End Date Payment Rate 12/31/2017 Pierce Aerial Platform Truck 2012 2018 111,679$ 2.31% 109,127$ Pierce Wildland Type 3 Truck 2013 2020 47,741 1.66% 138,598 Pierce Arrow Pumper Truck 2013 2020 92,695 2.03% 267,175 Pierce Arrow Pumper Truck 2014 2021 88,934 2.18% 337,164 Truck to be delivered in 2018 2017 2024 108,939 2.29% 697,164 1,549,228$ Outstanding Leases 35 The District may terminate any of the leases by paying the applicable purchase option price on any scheduled payment date. Total interest expense on capital lease obligations in the amount of $30,483 was charged to expense in the Statement of Activities for the year ended December 31, 2017. Annual debt service requirements to maturity for capital lease obligations outstanding at December 31, 2017, are as follows: Year Ending December 31 Principal Interest 2018 $ 416,377 $ 33,611 2019 313,685 24,625 2020 320,256 18,053 2021 186,529 11,344 2022-2024 312,381 14,438 Total Capital Lease Obligations $ 1,549,228 $ 102,071 Governmental Activities Prior Year Defeasance of Debt. In prior years, the District defeased Certificates of Participation (COP’s) by placing proceeds of the new COP’s or bonds in an irrevocable trust to provide for all future debt service payments on the old COP’s. Accordingly, the trust accounts and the liability for the defeased COP’s are not included in the District’s financial statements. At December 31, 2017, the following Certificates outstanding are considered defeased: Governmental Activities Certificates of Participation: Series 2010 3,395,000$ Series 2015 1,300,000 Total Certificates of Participation 4,695,000$ EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 36 Changes in Long-term Liabilities. Long-term liability activity for the year ended December 31, 2017, was as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities: General Obligation Bonds $ 23,450,000 $ - $ 180,000 $ 23,270,000 $ 470,000 Bond Premium 1,778,135 - 198,648 1,579,487 148,195 Capital Lease Obligations 1,168,781 697,164 316,717 1,549,228 416,377 Compensated Absences 185,852 372,655 354,621 203,886 203,886 Total Long-term Liabilities $ 26,582,768 $ 1,069,819 $ 1,049,986 $ 26,602,601 $ 1,238,458 Total interest incurred and charged as an expense in the Statement of Activities during the year ended December 31, 2017 was $658,718. Note 6. Intergovernmental Agreements General. The District is a party to numerous intergovernmental agreements, including: various emergency management and mutual aid agreements with other fire protection agencies, Eagle County, State of Colorado and federal agencies; a dispatch contract with the Town of Vail; vehicle maintenance and refueling contracts with the Town of Avon and Cordillera Metropolitan District; a plan review and fire code inspection and enforcement agreement with Eagle County; and a wildfire mitigation memorandum of understanding with various agencies. The District leases some of its fire stations pursuant to 99-year lease terms with the municipalities and metropolitan districts in which they are located. Pursuant to the leases, the stations revert to the owner if they cease to be used for emergency services purposes. Regional Hazardous Materials Association of Eagle County (RHMAEC). The District is an Operational Member of the Regional Hazardous Materials Association of Eagle County which was formed as a separate governmental entity pursuant to an intergovernmental agreement dated as of October 21, 2002, and subsequently amended on October 9, 2012, among the District, the Town of Vail, the Greater Eagle Fire Protection District, the Gypsum Fire Protection District, the Eagle County Sheriff and the Colorado State Patrol (each an Operating Member). RHMAEC was formed to provide coordinated planning, information management and reporting, training, education, coordination, rapid deployment of qualified personnel and proper equipment for pre- and initial hazardous substance emergency action and the financial management necessary to achieve the purposes of the IGA and minimize the effects of hazardous substance incidents within Eagle 37 County. Member contributions are proposed annually by the RHMAEC Board of Directors and approved by the governing body of each Operating Member. Emergency Service Impact Fees. The District has entered into substantially similar intergovernmental agreements with Eagle County, the Town of Avon, the Town of Red Cliff and the Town of Minturn for the collection of emergency service impact fees. Subject to specified refund provisions, the funds collected must be transferred to the District within 60 days of receipt, less a 6% administrative fee. Impact fees are required to be accounted for in a separate interest- bearing fund. The impact fee is currently imposed based upon the size of the water meter required for the development and range from $1,671 for a ¾-inch meter to $240,988 for a twelve-inch meter. The impact fee may be reviewed and revised annually based upon specified Consumer Price Index criteria. Waivers may be granted by the applicable governing body with respect to the development of low or moderately priced housing units for sale or lease to low or moderate income persons; provided that the parties to the development must restrict the future use of the applicable units. Pursuant to each agreement, impact fees are collected at the time a building permit is issued. Unpaid impact fees constitute a prior, perpetual lien upon each lot or parcel subject to the fee; unpaid fees are certified to the Eagle County Treasurer for collection in the same manner as delinquent property taxes. Certificates of occupancy also may be withheld until the impact fees are paid. Impact fees collected must be used, in conjunction with District funds, to fund capital facilities, vehicles, and equipment necessary to provide emergency services needed to serve development as specified in the currently applicable impact fee study adopted by the respective municipality or Eagle County. Beaver Creek Metropolitan District Agreement. The District entered into an Agreement for Fire Protection and Emergency Services with Beaver Creek Metropolitan District (BCMD) dated as of January 1, 2005, and amended as of May 8, 2008 (the “BCMD Agreement”). The BCMD Agreement was approved by BCMD voters as a multiple-fiscal year obligation for purposes of Article X, Section 20 of the State Constitution. Pursuant to the BCMD Agreement, the District provides contracted fire protection and emergency services within the BCMD service area. BCMD provides an existing fire station for the District’s use, together with specified firefighting and communication equipment and two full-time public safety officers holding specified firefighting and/or emergency medical technician certifications. BCMD retains ownership of the fire station and its equipment and generally is responsible for purchasing additional vehicles and equipment needed to provide services. The District is responsible for repair and maintenance of the fire station and for maintaining equipment. The BCMD Agreement had a ten year term, which ended on December 31, 2014. BCMD paid the District, as compensation for fire services, an annual fee ($839,000 in 2005) that increased annually based upon a specified Consumer Price Index (CPI) formula. The District has entered into a new agreement with BCMD effective January 1, 2015, for a five year term with three EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 38 additional two-year optional renewals. The terms are generally similar to the previous agreement. The fee was $1,201,299 for the year ended December 31, 2017. Facilities Management Agreement. The District entered into an Intergovernmental Agreement (IGA) with the Town of Avon on April 28, 2015 for the purpose of jointly designing, financing, and constructing a Joint Public Safety Facility in the Town of Avon. The IGA expires on June 2, 2020. The IGA provides for a number of covenants and mutual agreements including temporary financing, design, construction bid process, construction financing, sale and conveyance of land, and construction. As of December 31, 2017 there have been three amendments to the IGA including entering into a memorandum of agreement regarding cost sharing, and the waiver of various fees by both parties. The District entered into an IGA with the Town of Avon on September 26, 2017. This agreement amends and replaces all prior intergovernmental agreements with the Town of Avon regarding the joint fire –police station facility. The agreement addresses ownership, operation, and maintenance of the joint facility. The District and the Town agree to meet at least annually no later than June 15th to review and update the facility management plan and to budget for the following years obligations by July 31st. The parties agree to annually budget and contribute to a reserve fund. Each party has the right of first refusal if the other party wants to sale their portion of the space. The reserve fund was not funded in 2017 by either party. Note 7. Risk Management The District is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees, or acts of God. The District maintains commercial insurance for significant insurable risks. Settled claims did not exceed this commercial coverage in any of the past three fiscal years. Note 8. Commitments and Contingencies Litigation. The District is not aware of any pending or threatened lawsuits. Contractual Commitments. On January 23, 2017, the District entered into a contract with Pierce Manufacturing, Inc. for the purchase of a Pierce Arrow XT 4X4 PUC Pumper truck in the amount of $697,164. The terms of the agreement provide for a chassis prepayment three months after signed contract. This payment was made to Pierce on March 30, 2017. A remaining payment to Pierce in the amount of $311,366 is due upon delivery and acceptance of the truck by the District. Tax, Spending and Debt Limitations. Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR) contains tax, spending, revenue and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year’s Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is 39 generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. TABOR also requires local governments to establish emergency reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The District has established an emergency reserve for the year ended December 31, 2017 in the amount of $356,069. On May 2, 2000, a majority of the District’s electors authorized the District to collect and spend, or retain in a reserve, all taxes related to a mill levy of 3.8 mills and other fees of the District without regard to any limitations under TABOR, or the statutory 5.5% property tax levy limitation contained in Colorado Revised Statues Section 29-1-301. On May 4, 2006, a majority of the District’s electors authorized a mill levy increase from the 3.8 mills to 5.55 mills. On November 6, 2012, a majority of the District’s electors authorized a supplemental mill levy that may increase up to 3.77 mills over and above the existing mill levy of 5.55 mills (total of 9.32 mills). It is expected that this a supplemental mill levy will generate property tax revenues equal to the 2010 property tax revenues as adjusted by inflation and local growth. The District’s management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including interpretations of how to calculate Fiscal Year Spending limits may require judicial interpretation. On May 3, 2016 a majority of the District’s electors authorized an annual tax increase not to exceed $1,300,000 annually to pay for the General Obligation Bonds, Series 2016. Construction contracts. The District had various building projects in process with remaining estimated costs of $9,907,202 million as of December 31, 2017. Note 9. Employee Retirement Plans Full-time Employees. The District, under the authority granted it by Colorado Revised Statute Title 32, Article 1, has established and maintains two single-employer, defined contribution pension plans for full-time employees: (1) Eagle River Fire Protection District Firefighters Money Purchase Pension Plan, and (2) Eagle River Fire Protection District Administrative Employees Money Purchase Pension Plan. Effective May 1, 2012, these plans are administered by OneAmerica. A defined contribution pension plan has terms that specify how contributions to an individual’s account are to be determined rather than the amount of pension benefits the individual is to receive. In a defined contribution plan, the pension benefits a participant will receive depend only on the amount contributed to the participant’s account, earnings on investments of those contributions, and forfeitures of other participant’s benefits that may be allocated to the participant’s account. EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO THE FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2017 40 All full-time employees are required to participate in one of the above retirement plans upon employment with the District. The type of plan that an employee participates in is dependent on the type of employee (firefighter or administrative). Each plan provides that both the employee and the District will contribute an amount equal to 11% of the employee’s base salary each month. Employees start partial vesting after two years of service and are fully vested after five years of service. In addition, if an employee reaches normal retirement age, dies, or becomes totally and permanently disabled his account becomes fully vested regardless of length of service. Forfeitures by employees who leave employment before being fully vested are applied, first, to offset administrative expenses of the plans, and second, to reduce matching employer contributions. During the year ended December 31, 2017 there were no differences between contribution requirements and contributions actually made by plan participants or the District. Contributions made by plan members and the District for the three years ended December 31, 2017, are as follows: 2017 2016 2015 Employees 497,165$ 458,886$ 458,618$ District 497,165$ 458,886$ 458,618$ Both the District and the covered employees each made the required 11% contributions to the plans. There are no liabilities for benefits beyond the District’s matching payments. No major changes in the various plan’s provisions occurred in 2017. As of December 31, 2017 there were 3 participants in the Administrative plan and 76 participants in the Firefighters plan. Part-time, Temporary and Seasonal Employees. On December 31, 2000, the District adopted a PTS Retirement Plan (PTS plan) established under Section 457 of the Internal Revenue Code that pertains to deferred compensation plans. Effective May 1, 2012, this plan is administered by OneAmerica. The PTS Plan is designed specifically for employees who are part-time, temporary, or seasonal, and is defined as a Social Security replacement retirement plan. The PTS plan allows qualifying participants to defer federal and state income taxes on savings until retirement. Part-time employees are automatically enrolled in the PTS plan and do not have an option to contribute additional amounts. The PTS plan requires a contribution of 7.5% of an employee’s salary per plan year. This 7.5% may be the employee’s contribution, the employer’s contribution or a combination of both. The District has elected to have 3.75% contributed by each employee and 3.75% matched by the District. As of December 31, 2017 there were 6 participants in the PTS plan. Upon separation of service, participants may roll the account balance over into another 457 plan. If not rolled over, balances are automatically paid-out to the participant. Taxes are paid when 41 funds are withdrawn from the plan. Contributions actually made by plan members and the District for the three years ended December 31, 2017, are as follows: 2017 2016 2015 Employees 1,418$ 1,191$ 4,329$ District 1,418$ 1,191$ 4,329$ Both the District and the covered employees each made the required 3.75% contributions to the plan. There are no liabilities for benefits beyond the District’s matching payments. As of December 31, 2017 there were 6 participants in the PTS plan. Note 10. 457 Deferred Compensation Plan The District offers its full-time employees an optional supplemental deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is administered by OneAmerica and allows eligible participants the opportunity to accumulate additional retirement savings with certain tax advantages. Deposits into the 457 plan are not subject to state or federal income taxes at the time of deposit, and earnings on these deposits are deferred until withdrawn. As of December 31, 2017 there were 55 participants in the 457 plan. 42 REQUIRED SUPPLEMENTARY INFORMATION 43 EAGLE RIVER FIRE PROTECTION DISTRICT REQUIRED SUPPLEMENTAL INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 8,760,107$ 8,762,888$ 8,804,155$ 41,267$ Licenses and Permits 50,000 50,000 36,013 (13,987) Intergovernmental 1,000 1,951 5,629 3,678 Charges for Services 1,203,636 1,201,300 1,201,299 (1) Investment Earnings 15,000 64,000 64,603 603 Miscellaneous 12,500 22,500 33,122 10,622 Total Revenues 10,042,243 10,102,639 10,144,821 42,182 Expenditures Current: Support Services 2,076,630 2,121,146 1,899,462 221,684 Operations 6,922,822 7,107,308 6,978,627 128,681 Health, Wellness and Safety 158,695 149,257 146,080 3,177 Fire Prevention and Community Risk Mgmt.407,753 371,865 357,865 14,000 Debt Service: Principal & Interest 341,049 341,049 341,049 - Total Expenditures 9,906,949 10,090,625 9,723,083 367,542 Excess (Deficiency) of Revenues Over (Under) Expenditures 135,294 12,014 421,738 409,724 Other Financing Sources (Uses) Capital Lease Proceeds - 697,164 697,164 - Disposition of Capital Assets - 16,800 18,501 1,701 Total Other Financing Sources (Uses)- 713,964 715,665 1,701 Net Change in Fund Balances 135,294 725,978 1,137,403 411,425 Fund Balances, Beginning of Year 3,562,506 3,962,834 3,962,834 - Fund Balances, End of Year 3,697,800$ 4,688,812$ 5,100,237$ 411,425$ Budgeted Amounts 44 EAGLE RIVER FIRE PROTECTION DISTRICT NOTES TO REQUIRED SUPPLEMENTAL INFORMATION DECEMBER 31, 2017 Note 1. Budgetary Information An annual budget is legally adopted on a basis consistent with generally accepted accounting principles for all funds. Appropriations lapse at fiscal year-end. The budget is prepared by fund, program, activity, and object. Expenditures may not legally exceed budgeted appropriations at the fund level. The Board of Directors holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Board must adopt the budget by resolution prior to December 15th. Once adopted, the Board can modify the budget by line item within a fund’s total appropriation without notification. Upon meeting notification and publication requirements, supplemental amendments increasing appropriations may be passed by resolution of the Board of Directors. 45 OTHER SUPPLEMENTAL INFORMATION 46 EAGLE RIVER FIRE PROTECTION DISTRICT DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 1,350,000$ 1,351,826$ 1,368,112$ 16,286$ Investment Earnings 2,000 2,325 4,235 1,910 Total Revenues 1,352,000 1,354,151 1,372,347 18,196 Expenditures Support Services 39,000 39,000 38,782 218 Debt Service: Principal 180,000 180,000 180,000 - Interest 1,116,915 1,116,915 1,116,915 - Fiscal Agent Fees - 1,000 1,000 - Total Expenditures 1,335,915 1,336,915 1,336,697 218 Excess (Deficiency) of Revenues Over (Under) Expenditures 16,085 17,236 35,650 18,414 Net Change in Fund Balances 16,085 17,236 35,650 18,414 Fund Balances, Beginning of Year - - - - Fund Balances, End of Year 16,085$ 17,236$ 35,650$ 18,414$ Budgeted Amounts 47 EAGLE RIVER FIRE PROTECTION DISTRICT DEBT SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEARS ENDING DECEMBER 31, 2017 AND 2016 2017 2016 Revenues Taxes 1,368,112$ -$ Investment Earnings 4,235 1 Total Revenues 1,372,347 1 Expenditures Support Services 38,782 - Debt Service: Principal 180,000 71,799 Interest 1,116,915 18,721 Fiscal Charges 1,000 2,000 Total Expenditures 1,336,697 92,520 Excess (Deficiency) of Revenues Over (Under) Expenditures 35,650 (92,519) Other Financing Sources (Uses) Transfers In - 92,519 Total Other Financing Sources (Uses)- 92,519 Net Change in Fund Balances 35,650 - Fund Balances, Beginning of Year - - Fund Balances, End of Year 35,650$ -$ 48 EAGLE RIVER FIRE PROTECTION DISTRICT CAPITAL IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental 140,247$ 187,152$ 158,590$ (28,562)$ Investment Earnings 3,400 5,400 6,000 600 . Total Revenues 143,647 192,552 164,590 (27,962) Expenditures Support Services 8,415 11,230 9,515 1,715 Total Expenditures 8,415 11,230 9,515 1,715 Excess (Deficiency) of Revenues Over (Under) Expenditures 135,232 181,322 155,075 (26,247) Net Change in Fund Balances 135,232 181,322 155,075 (26,247) Fund Balances, Beginning of Year 467,102 461,068 461,068 - Fund Balances, End of Year 602,334$ 642,390$ 616,143$ (26,247)$ Budgeted Amounts 49 EAGLE RIVER FIRE PROTECTION DISTRICT CAPITAL IMPACT FEE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEARS ENDING DECEMBER 31, 2017 AND 2016 2017 2016 Revenues Intergovernmental 158,590$ 133,728$ Investment Earnings 6,000 2,530 Total Revenues 164,590 136,258 Expenditures Support Services 9,515 8,060 Total Expenditures 9,515 8,060 Excess (Deficiency) of Revenues Over (Under) Expenditures 155,075 128,198 Net Change in Fund Balances 155,075 128,198 Fund Balances, Beginning of Year 461,068 332,870 Fund Balances, End of Year 616,143$ 461,068$ 50 EAGLE RIVER FIRE PROTECTION DISTRICT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Earnings 25,000$ 170,000$ 187,230$ 17,230$ Total Revenues 25,000 170,000 187,230 17,230 Expenditures Capital Outlay 8,822,528 9,304,780 7,912,035 1,392,745 Total Expenditures 8,822,528 9,304,780 7,912,035 1,392,745 Excess (Deficiency) of Revenues Over (Under) Expenditures (8,797,528) (9,134,780) (7,724,805) 1,409,975 Net Change in Fund Balances (8,797,528) (9,134,780) (7,724,805) 1,409,975 Fund Balances, Beginning of Year 20,254,797 20,288,830 20,288,830 - Fund Balances, End of Year 11,457,269$ 11,154,050$ 12,564,025$ 1,409,975$ Budgeted Amounts 51 EAGLE RIVER FIRE PROTECTION DISTRICT CAPITAL PROJECTS FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEARS ENDING DECEMBER 31, 2017 AND 2016 2017 2016 Revenues Investment Earnings 187,230$ 77,306$ Total Revenues 187,230 77,306 Expenditures Capital Outlay 7,912,035 2,434,525 Total Expenditures 7,912,035 2,434,525 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,724,805) (2,357,219) Other Financing Sources (Uses) Debt Issuance - 23,545,240 Cost of Debt Issuance - (293,229) Transfers Out - (605,962) Total other Financing Sources (uses)- 22,646,049 Net Change in Fund Balances (7,724,805) 20,288,830 Fund Balances, Beginning of Year 20,288,830 - Fund Balances, End of Year 12,564,025$ 20,288,830$ 52 EAGLE RIVER FIRE PROTECTION DISTRICT EQUIPMENT REPLACEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Charges for Services: Equipment Replacement Charges 151,074$ 144,774$ 144,774$ -$ Investment Earnings 1,500 5,700 6,311 611 Total Revenues 152,574 150,474 151,085 611 Expenditures: Capital Outlay 49,500 49,500 49,401 99 Total Expenditures 49,500 49,500 49,401 99 Excess (Deficiency) of Revenues Over (Under) Expenditures 103,074 100,974 101,684 710 Net Change in Fund Balances 103,074 100,974 101,684 710 Fund Balances, Beginning of Year 604,306 604,717 604,717 - Fund Balances, End of Year 707,380$ 705,691$ 706,401$ 710$ Fund Balances at December 31, 2017, is computed as follows: Current Assets 706,401$ Less: Current Liabilities - Fund Balances - December 31, 2017 706,401$ Budgeted Amounts 53 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET ASSETS (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)101,684$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Capital Outlay 36,853 Depreciation (124,910) Total Adjustments (88,057) Change in Net Assets(GAAP Basis)13,627$ 54 STATISTICAL SECTION 55 STATISTICAL SECTION This section of the District’s Comprehensive Annual Financial Report (“CAFR”) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the District’s overall financial health. Financial Trends (Pages 56-64) – These schedules contain trend information to help readers understand how the District’s financial performance and well-being have changed over time. Revenue Capacity (Pages 65-68) – These schedules contain information to help readers understand and assess the factors affecting the District’s ability to generate its own-source revenues, specifically property taxes. Debt Capacity (Pages 69-72) – These schedules present information to help readers understand and assess the District’s debt burden and ability to issue additional debt. Demographic and Economic Information (Pages 73-74) – These schedules offer demographic and economic information to help readers understand the environment in which the District’s financial activities take place and to provide information that facilitates comparisons of financial statement information over time and among other local governments. Operating Information (Pages 76-81) – These schedules contain service and infrastructure information to help readers understand how the information in the District’s financial report relates to the services the District provides and the activities it performs. 56 NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2008 2009 2010 2011 Governmental Activities Net Investment in Capital Assets 3,379,466$ 3,531,904$ 3,719,037$ 2,877,089$ Restricted: Emergencies 197,096 234,598 231,775 245,695 Debt Service - - - 403,918 Capital Improvements - 76,888 135,866 188,365 Unrestricted 2,091,544 2,359,711 2,289,620 3,153,116 Total Governmental Activities Net Position 5,668,106$ 6,203,101$ 6,376,298$ 6,868,183$ Source: Eagle River Fire Protection District EAGLE RIVER FIRE PROTECTION DISTRICT Fiscal Year 57 Restated 2012 2013 2014 2015 2016 2017 3,385,240$ 2,896,348$ 4,168,600$ 3,354,315$ 3,245,913$ 2,835,864$ 206,954 256,148 286,905 294,218 305,311 356,069 403,898 403,898 399,505 - - - 3,152 103,318 222,256 332,870 20,749,898 13,492,922 3,344,517 4,261,890 3,526,232 3,736,391 (16,496,796) (7,597,995) 7,343,761$ 7,921,602$ 8,603,498$ 7,717,794$ 7,804,326$ 9,086,860$ Fiscal Year 58 EAGLE RIVER FIRE PROTECTION DISTRICT CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2008 2009 2010 2011 Expenses Governmental Activities: Fire Protection - Operations 5,083,556$ 6,495,518$ 6,918,462$ 7,133,289$ Capital Improvements 338,942 65,053 224,956 - Depreciation 484,730 583,382 557,380 477,444 Bond Issuance Costs - - - - Interest on Long-term Debt 28,769 123,582 80,448 370,563 Total Governmental Activity Expenses 5,935,997 7,267,535 7,781,246 7,981,296 Program Revenues Governmental Activities: Charges for Services 1,030,822 916,436 954,516 952,902 Licenses and Permits 77,968 46,666 33,298 24,108 Capital Grants and Contributions - - - - Operating Grants 2,734 7,005 233,024 225,067 Total Governmental Activity Program Revenues 1,111,524 970,107 1,220,838 1,202,077 Total Governmental Activity Net Program Revenue (Expense) - Primary Government (4,824,473) (6,297,428) (6,560,408) (6,779,219) General Revenues Governmental Activities: Property and Specific Ownership Taxes 5,119,006 6,553,435 6,632,087 7,030,746 Intergovernmental 153,572 153,532 66,572 148,998 Unrestricted Investment Earnings 153,945 95,542 17,259 5,093 Miscellaneous 32,805 47,314 17,687 96,577 Refunding Escrow - - - - Gain (Loss) on Disposal of Capital Assets - (17,400) - 257,614 Total Governmental Activity General Revenues 5,459,328 6,832,423 6,733,605 7,539,028 Change in Net Position - Primary Government 634,855$ 534,995$ 173,197$ 759,809$ Source: Eagle River Fire Protection District Fiscal Year 59 2012 2013 2014 2015 2016 2017 6,388,155$ 7,245,745$ 8,075,972$ 8,880,198$ 9,032,081$ 9,382,710$ - - - - - - 466,468 462,349 571,717 591,096 585,691 691,058 - - - - 223,966 5,052 314,939 298,609 307,597 161,463 400,400 658,718 7,169,562 8,006,703 8,955,286 9,632,757 10,242,138 10,737,538 993,517 1,000,138 1,097,767 1,286,609 1,228,536 1,201,299 28,135 43,006 53,019 47,519 - 36,013 - - - - - - 173,955 50,500 - - - - 1,195,607 1,093,644 1,150,786 1,334,128 1,228,536 1,237,312 (5,973,955) (6,913,059) (7,804,500) (8,298,629) (9,013,602) (9,500,226) 5,443,919 7,316,232 8,210,770 8,409,806 8,535,709 10,172,267 282,100 145,326 250,456 203,671 346,389 308,993 11,569 6,380 6,214 9,520 114,145 268,378 114,641 23,990 18,956 17,662 88,147 33,122 - - - (817,601) - - 2,679 (1,028) - (410,133) 15,744 - 5,854,908 7,490,900 8,486,396 7,412,925 9,100,134 10,782,760 (119,047)$ 577,841$ 681,896$ (885,704)$ 86,532$ 1,282,534$ Fiscal Year 60 EAGLE RIVER FIRE PROTECTION DISTRICT CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2008 2009 2010 2011 Revenues Taxes 6,553,435$ 6,632,087$ 7,111,566$ 7,030,746$ Licenses and Permits 46,666 33,298 33,587 24,108 Intergovernmental 160,537 299,596 390,667 374,065 Charges for Services 916,436 954,516 936,621 952,902 Investment Earnings 95,542 17,259 11,387 5,093 Miscellaneous 47,314 17,687 32,036 96,577 Total Revenues 7,819,930 7,954,443 8,515,864 8,483,491 Expenditures Current: General and Administrative 1,394,594 1,412,775 1,398,537 1,311,730 Emergency Response 4,430,253 4,758,312 5,094,544 5,283,087 Fire Prevention 325,919 363,723 322,928 115,920 Training 292,729 308,197 282,965 182,756 Resident Program 36,891 65,039 65,507 84,046 Support Services - - - - Operations - - - - Health, Wellness and Safety - - - - Fire Prevention and Community Risk Mgmt.- - - - Capital Improvements 1,602,025 497,888 3,689,772 171,434 Debt Service: Principal 281,566 360,184 474,030 489,007 Interest and Fiscal Charges 66,248 91,610 341,571 351,190 Bond Issuance Costs - - 182,572 - Total Expenditures 8,430,225 7,857,728 11,852,426 7,989,170 Excess (Deficiency) of Revenues Over (Under) Expenditures (610,295) 96,715 (3,336,562) 494,321 Other Financing Sources (Uses) Transfers In - - 767,668 402,744 Transfers Out - - (767,668) (402,744) Bond Issuance - - 4,465,000 - Capital Lease Issuance 953,922 - - - Payment to Refunding Escrow - - - - Disposal of Capital Assets/Insurance Recovery - - - - Total Other Financing Sources (Uses)953,922 - 4,465,000 - Net Change in Fund Balances 343,627$ 96,715$ 1,128,438$ 494,321$ Debt Service as a Percentage of Noncapital Expenditures 5.09%6.14%9.99%10.75% Source: Eagle River Fire Protection District Note: In 2014 the District revised the organization of its budget and accounting system to a program/activity-based structure. Fiscal Year 61 2012 2013 2014 2015 2016 2017 5,443,919$ 7,316,232$ 8,210,770$ 8,409,806$ 8,535,709$ 10,172,267$ 28,135 43,006 53,019 47,519 59,957 36,013 456,055 195,826 250,456 156,152 213,103 164,219 993,517 1,000,138 1,024,069 1,166,597 1,168,579 1,201,299 11,569 6,380 6,214 9,520 110,918 262,068 114,641 23,990 18,956 17,662 88,147 33,122 7,047,836 8,585,572 9,563,484 9,807,256 10,176,413 11,868,988 1,282,945 1,294,661 - - - - 4,803,392 5,652,215 - - - - 89,451 107,071 - - - - 156,338 163,972 - - - - 3,187 - - - - - - - 1,770,798 1,838,198 1,912,998 1,947,759 - - 6,180,777 6,532,771 6,628,447 6,978,627 - - 48,925 112,597 122,130 146,080 - - 170,691 264,398 346,519 357,865 543,238 823,527 1,602,466 2,115,652 3,344,466 7,912,035 505,532 366,190 499,335 455,512 381,945 496,717 338,196 296,081 301,060 195,659 49,624 1,142,247 - - - 80,000 316,193 - 7,722,279 8,703,717 10,574,052 11,594,787 13,102,322 18,981,330 (674,443) (118,145) (1,010,568) (1,787,531) (2,925,909) (7,112,342) 406,295 404,264 397,558 296,541 698,481 - (406,295) (404,264) (731,530) (296,541) (698,481) - - - - 2,432,989 25,228,135 - - 913,346 571,620 - - 697,164 - - - (4,677,602) (1,664,297) - 2,679 - - 3,593,613 277,651 18,501 2,679 913,346 237,648 1,349,000 23,841,489 715,665 (671,764)$ 795,201$ (772,920)$ (438,531)$ 20,915,580$ (6,396,677)$ 11.75%8.40%8.92%6.87%4.42%14.81% Fiscal Year 62 EAGLE RIVER FIRE PROTECTION DISTRICT FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2008 2009 2010 2011 2012 General Fund Nonspendable 113,352$ 1,850$ 1,879$ 26,322$ 13,163$ Restricted 234,598 231,775 245,695 258,170 206,954 Committed - - - 156,118 - Unassigned 2,508,922 2,549,588 3,207,659 3,968,531 3,586,235 Total General Fund 2,856,872 2,783,213 3,455,233 4,409,141 3,806,352 All Other Governmental Funds Restricted 76,888 135,866 592,283 476,025 407,050 Total All Other Governmental Funds 76,888$ 135,866$ 592,283$ 476,025$ 407,050$ 2013 2014 2015 2016 2017 General Fund Nonspendable 61,380$ 56,825$ 5,375$ 708$ -$ Restricted 256,148 286,905 294,218 305,311 668,823 Committed - - - - - Unassigned 4,183,859 3,270,192 3,164,689 3,656,815 4,431,414 Total General Fund 4,501,387 3,613,922 3,464,282 3,962,834 5,100,237 All Other Governmental Funds Restricted 507,216 621,761 332,870 20,749,898 13,215,818 Total All Other Governmental Funds 507,216$ 621,761$ 332,870$ 20,749,898$ 13,215,818$ Source: Eagle River Fire Protection District Note: Fiscal Year Fiscal Year (1) Fiscal years 2008 through 2011 have been reclassified with implementation of GASB Statement No. 54 in fiscal year 2011. 63 EAGLE RIVER FIRE PROTECTION DISTRICT TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Specific Ownership Year Current Delinquent Interest Abatements Tax Total 2008 6,234,834 386 10,207 - 308,008 6,553,435 2009 6,331,030 34,357 21,851 (15,897) 260,746 6,632,087 2010 6,927,743 247 18,801 (69,055) 233,830 7,111,566 2011 6,877,886 5,797 15,201 (90,724) 222,586 7,030,746 2012 5,240,799 (1,229) 11,232 (13,018) 206,135 5,443,919 2013 7,018,843 2,592 14,724 (7,576) 287,649 7,316,232 2014 7,835,306 742 15,647 (39,626) 398,701 8,210,770 2015 7,981,854 586 15,792 (3,230) 414,804 8,409,806 2016 8,133,111 1,309 16,080 (7,649) 392,858 8,535,709 2017 9,658,300 758 17,664 (10,364) 505,909 10,172,267 Source: Eagle County Treasurer Property Taxes 64 EAGLE RIVER FIRE PROTECTION DISTRICT CAPITAL IMPACT FEES COLLECTED LAST TEN FISCAL YEARS (1) Net Capital Eagle Town of Town of Town of Collection Impact Fees Year County Avon Minturn Red Cliff Fees Received 2008 67,180$ 14,205$ -$ -$ (5,224)$ 76,161$ 2009 50,135 5,682 6,684 - (3,911) 58,590 2010 22,226 31,584 1,671 - (3,329) 52,152 2011 39,104 23,395 5,013 - (4,051) 63,461 2012 32,519 11,196 - - (2,623) 41,092 2013 20,320 82,887 1,671 - (6,391) 98,487 2014 96,426 28,242 - 1,671 (7,580) 118,759 2015 93,250 23,896 - - (7,028) 110,118 2016 101,477 13,870 1,671 16,710 (8,060) 125,668 2017 125,335 29,913 - 3,342 (9,515) 149,075 Source: Eagle River Fire Protection District Finance Office Note: (1) The resolution establishing Emergency Services Impact Fee Capital Impact Fund was adopted on September 20, 2007. Collection Entity 66 EAGLE RIVER FIRE PROTECTION DISTRICT ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Gross Levy Collection Vacant Residential Commercial Other Assessed Year Year Land Property Property Property Value 2007 2008 152,101,310 737,903,270 232,817,110 12,569,340 1,135,391,030 2008 2009 133,519,570 774,792,910 235,187,080 12,628,960 1,156,128,520 2009 2010 140,246,760 872,845,620 248,261,130 13,190,250 1,274,543,760 2010 2011 131,095,740 881,085,550 237,951,110 12,943,210 1,263,075,610 2011 2012 74,752,560 672,664,670 186,073,100 13,847,620 947,337,950 2012 2013 69,844,450 675,783,260 181,422,120 16,619,750 943,669,580 2013 2014 62,936,990 599,821,820 175,685,410 24,742,070 863,186,290 2014 2015 60,248,270 604,343,130 175,994,400 21,725,320 862,311,120 2015 2016 62,043,910 729,341,490 195,498,440 20,916,100 1,007,799,940 2016 2017 57,869,790 736,414,040 194,267,570 21,245,110 1,009,796,510 Less TIF Total Net Direct Actual Value as a Levy Collection District Assessed Tax Taxable Percentage of Year Year Increment (1)Value Rate Value Actual Value 2007 2008 2,257,820 1,133,133,210 5.550 10,548,878,270 10.74% 2008 2009 10,266,600 1,145,861,920 5.550 10,951,905,710 10.46% 2009 2010 17,517,540 1,257,026,220 5.550 12,288,069,840 10.23% 2010 2011 17,481,590 1,245,594,020 5.550 12,328,954,040 10.10% 2011 2012 12,538,960 934,798,990 5.650 9,339,867,530 10.01% 2012 2013 12,511,160 931,158,420 7.553 9,354,165,960 9.95% 2013 2014 12,105,380 851,080,910 9.238 8,363,651,680 10.18% 2014 2015 11,501,900 850,809,220 9.392 8,396,651,350 10.13% 2015 2016 16,476,380 991,323,560 8.205 10,122,751,780 9.79% 2016 2017 17,221,870 992,574,640 9.740 10,194,098,140 9.74% Source: Eagle County Assessor's Office, Selected Authority Abstract (1) The Avon Urban Renewal Authority was established in August, 2007. Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. Other property includes industrial, natural resources, state assessed, agricultural, and abatements and corrections. 66 EAGLE RIVER FIRE PROTECTION DISTRICT DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Taxing Entity 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Eagle River Fire Protection District 5.550 5.550 5.550 5.550 5.650 7.553 9.238 9.392 8.205 9.740 Cities and Towns Town of Avon 12.271 11.392 11.208 11.220 12.072 11.983 12.258 12.207 11.765 8.956 Town of Minturn 17.934 17.934 17.934 17.934 17.934 17.934 17.934 17.934 17.934 17.934 Town of Red Cliff 38.827 37.820 33.878 33.878 33.878 33.878 33.878 33.878 31.409 32.798 Counties Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 Colleges and School Districts Colorado Mountain College 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 Eagle County School District RE-50J 20.051 20.414 19.402 19.474 21.601 21.362 20.826 21.517 20.331 25.209 Metropolitan Districts Arrowhead Metro.17.000 17.000 17.000 17.000 17.000 17.000 17.000 17.000 18.500 18.500 Avon Metro.3.281 2.705 2.535 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Avon Station Metro. 45.000 45.000 45.000 45.000 58.000 58.000 58.000 58.000 58.000 63.000 Bachelor Gulch Metro.24.000 21.000 21.000 20.000 20.000 20.000 19.000 19.000 17.000 15.000 Bellyache Ridge Metro.22.500 18.000 18.000 18.000 22.500 22.500 22.500 22.500 14.068 22.500 Berry Creek Metro.14.496 14.496 13.177 13.177 17.055 16.627 18.172 18.331 18.172 14.095 Confluence Metro.45.000 45.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Cordillera Metro.23.165 23.165 19.663 19.663 26.535 22.720 25.480 25.740 21.574 20.797 Cordillera Metro. Consolidated 22.900 22.933 20.691 21.135 31.478 31.579 39.691 42.091 36.111 38.034 Cordillera Mtn Metro.37.220 37.220 33.273 33.273 60.728 56.804 57.011 54.928 41.589 41.479 Cordillera Valley Club Metro.25.000 25.000 25.000 25.000 25.000 26.297 25.000 26.440 25.000 25.000 Eagle-Vail Metro.14.835 14.835 19.719 19.720 20.774 20.766 21.937 21.936 20.720 20.755 Edwards Metro.1.691 1.691 1.515 1.515 1.691 1.691 1.691 1.691 1.691 1.691 Holland Creek Metro.45.000 45.000 45.000 45.000 45.000 45.000 45.000 45.000 45.000 45.000 Lake Creek Metro.7.942 8.256 7.684 7.605 8.588 8.829 10.458 10.458 9.000 9.000 Mountain Vista Metro.33.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 Red Sky Ranch Metro.45.000 45.000 45.000 45.000 65.000 65.000 69.000 69.000 64.000 64.000 Smith Creek Metro.0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Village Metro.15.000 15.000 15.000 40.000 50.000 50.000 50.000 50.000 50.000 50.000 Other Special Districts Eagle Valley Library District 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 Eagle River Water and Sanitation District 0.826 0.826 0.795 0.796 0.932 0.931 0.946 0.954 0.852 0.849 Colorado River Water Conservancy District 0.191 0.199 0.166 0.188 0.228 0.242 0.242 0.253 0.243 0.253 Eagle County Health Services District 2.019 2.055 1.780 1.768 1.764 2.023 2.006 2.019 2.008 2.755 Avon General Improvement District No. 1 0.000 9.396 9.396 9.396 15.288 15.288 17.557 17.557 14.077 14.005 Minturn Cemetery District 0.450 0.450 0.450 0.450 0.450 0.450 0.450 0.450 0.450 0.450 W. Eagle County Health Services District 5.136 5.136 5.000 5.195 5.195 5.039 5.029 0.000 0.000 0.000 W. Eagle County Metropolitan Recreation District 3.650 3.650 3.650 3.650 3.650 3.650 3.650 3.650 3.650 3.650 Source: Eagle County Assessor's Office, Abstract of Assessment Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. Not all overlapping tax rates apply to all areas of the District. Collection Year 67 EAGLE RIVER FIRE PROTECTION DISTRICT PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Bachelor Gulch Properties LLC 14,584,520$ 1 1.47%10,586,700$ 3 0.93% Vail Corp.12,161,590 2 1.23%11,386,030 1 1.00% Public Service Co. of Colorado 10,733,280 3 1.08%0.00% Vail Associates Inc.10,579,900 4 1.07%11,219,460 2 0.99% CSB Properties Holdings LLC 9,710,940 5 0.98% Traer Creek - WMT LLC 5,967,740 6 0.60%7,508,370 4 0.66% Avon MOB LLC 4,803,630 7 0.48% Ritz-Carlton Dev Co Inc.4,576,410 8 0.46%6,940,040 6 0.61% Holy Cross Electric Assoc Inc.4,421,480 9 0.45%3,243,090 12 0.29% Traer Creek - HD LLC 4,315,330 10 0.43%5,382,540 9 0.48% CSMN Investments LLC 4,221,460 11 0.43% Wind Rose Properties LLC 4,062,150 12 0.41% Avon Wynfield LLC 3,747,820 13 0.38% Beaver Creek Vacation Ownership Plan 3,740,230 14 0.38% Prime Group Mountain Center 3,654,870 15 0.37% Points of Colorado Inc.6,667,680 7 0.59% Levine S. Robert 7,065,330 5 0.62% Traer Creek - L2 LLC 6,051,120 8 0.53% Behringer Harvard Cordillera LLC 3,812,300 11 0.34% Riverfront Village Hotel LLC 3,022,540 14 0.27% ARI Mountain Center LLC 2,963,800 15 0.26% Eagle Golf LLC 3,131,120 13 0.28% Chapel Square Ventures LP 5,344,790 10 0.47% Total Assessed Value of the Fifteen Largest Taxpayers 101,281,350 10.20%94,324,910 8.32% Total Gross Assessed Value of Other Taxpayers 891,293,290 89.80%1,038,808,300 91.68% Total Gross Assessed Value of All Taxpayers 992,574,640$ 100.00%1,133,133,210$ 100.00% Source: Eagle County Assessor's Office, Selected Authority Abstract 2016 Levy Year 2007 Levy Year 68 EAGLE RIVER FIRE PROTECTION DISTRICT PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Ratio of (2)Total Tax (1)Current Percent of Delinquent Total Collections Levy Collection Total Tax Current Taxes Tax Tax To Total Year Year Tax Levy Collections Collected Collections Collections Tax Levy 2007 2008 6,288,889 6,234,834 99.14%386 6,235,220 99.15% 2008 2009 6,359,534 6,331,030 99.55%34,357 6,365,387 100.09% 2009 2010 6,976,495 6,927,743 99.30%247 6,927,990 99.30% 2010 2011 6,913,047 6,877,886 99.49%5,797 6,883,683 99.58% 2011 2012 5,281,614 5,240,799 99.23%(1,229) 5,239,570 99.20% 2012 2013 7,033,039 7,018,843 99.80%2,592 7,021,435 99.84% 2013 2014 7,862,286 7,835,306 99.66%742 7,836,048 99.67% 2014 2015 7,990,800 7,981,854 99.89%586 7,982,440 99.90% 2015 2016 8,157,638 8,133,111 99.70%1,309 8,134,420 99.72% 2016 2017 9,667,678 9,631,527 99.63%758 9,632,285 99.63% Source: Eagle River Fire Protection District Notes: (1) Taxes are due and payable on January 1 based on the prior year's assessed valuation. (2) Information on outstanding delinquent taxes is not available. 69 EAGLE RIVER FIRE PROTECTION DISTRICT RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Percentage General Certificates Total of Eagle Co. Fiscal Obligation of Capital Note Primary Personal Year Bonds (1)Participation Leases Payable Government Income 2008 - - 2,386,984 - 2,386,984 0.09% 2009 - - 2,026,800 - 2,026,800 0.08% 2010 - 4,365,000 1,652,770 - 6,017,770 0.24% 2011 - 4,250,000 1,278,763 - 5,528,763 0.22% 2012 - 4,125,000 898,231 - 5,023,231 0.20% 2013 - 3,995,000 1,575,387 - 5,570,387 0.28% 2014 - 3,860,000 1,782,640 - 5,642,640 0.21% 2015 - 1,635,000 1,478,927 646,190 3,760,117 0.12% 2016 25,228,135 - 1,168,781 - 26,396,916 0.80% 2017 24,849,487 - 1,549,228 - 26,398,715 0.76% Source: Eagle River Fire Protection District, Bureau of Economic Analysis Governmental Activities 70 EAGLE RIVER FIRE PROTECTION DISTRICT RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 2008 2009 2010 2011 General Bonded Debt Outstanding General Obligation Bonds (1)-$ -$ -$ -$ Actual Taxable Property Value 10,548,878,270 10,951,905,710 12,288,069,840 12,328,954,040 Total Gross Assessed Value 1,135,391,030 1,156,128,520 1,274,543,760 1,263,075,610 Percentage of General Bonded Debt Outstanding to Actual Taxable Property Value 0.00%0.00%0.00%0.00% Debt Limit - 50% of Total Assessed Value 567,695,515$ 578,064,260$ 637,271,880$ 631,537,805$ Total Debt Applicable to Limit - - - - Legal Debt Margin 567,695,515$ 578,064,260$ 637,271,880$ 631,537,805$ Percentage of Total Debt Applicable to the Limit as a Percentage of Debt Limit 0.00%0.00%0.00%0.00% Source: Eagle County Assessor's Office, Selected Authority Abstract Fiscal Year 71 2012 2013 2014 2015 2016 2017 -$ -$ -$ -$ 25,228,135$ 24,849,487$ 9,339,867,530 9,354,165,960 8,363,651,680 8,396,651,350 10,122,751,780 10,194,098,140 947,337,950 943,669,580 863,186,290 862,311,120 1,007,799,940 1,009,796,510 0.00%0.00%0.00%0.00%0.25%0.24% 473,668,975$ 471,834,790$ 431,593,145$ 431,155,560$ 503,899,970$ 504,898,255$ - - - - 25,228,135 24,849,487 473,668,975$ 471,834,790$ 431,593,145$ 431,155,560$ 478,671,835$ 480,048,768$ 0.00%0.00%0.00%0.00%5.27%5.18% Fiscal Year EAGLE RIVER FIRE PROTECTION DISTRICT DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2017 Total General Estimated Estimated Obligation Percentage Amount Debt Applicable Applicable Outstanding to District a to District Direct Debt: (1) Eagle River Fire Protection District 24,849,487$ 100.00% 24,849,487$ Total Direct Debt 24,849,487 24,849,487 Overlapping Debt: Arrowhead Metropolitan District 12,565,000 100.00% 12,565,000 Bachelor Gulch Metropolitan District 9,640,000 100.00% 9,640,000 Berry Creek Metropolitan District 3,000,000 100.00% 3,000,000 Confluence Metropolitan District 21,875,000 100.00% 21,875,000 Cordillera Metropolitan District 6,720,000 100.00% 6,720,000 Cordillera Mountain Metropolitan District 4,070,000 100.00% 4,070,000 Eagle County School District RE-50J 281,775,470 38.40% 108,201,780 Eagle River Water and Sanitation District (Wastewater) 30,390,000 42.35% 12,870,165 Eagle-Vail Metropolitan District 5,085,000 100.00% 5,085,000 Red Sky Ranch Metropolitan District 8,890,000 100.00% 8,890,000 The Village Metropolitan District 6,453,267 100.00% 6,453,267 Total Overlapping Debt 390,463,737 199,370,212 Total Direct and Overlapping Debt 415,313,224$ 224,219,699$ Source: Information obtained from individual entities, Eagle County Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the District. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the District. This process recognizes that, when considering the District's ability to issue and repay long-term debt, the entire debt burden borne by the residents and business should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (1) Certificates of Participation and Capital Leases are considered direct debt of the District, but are not General Obligation debt and do not require voter approval. 72 73 EAGLE RIVER FIRE PROTECTION DISTRICT DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Eagle Eagle County Eagle County Denver / Eagle Town of Eagle Per Capita County RE-50J Boulder County Avon County Personal Median School Consumer Unemployment Year Population Population Income Age Enrollment Price Index Rate 2008 6,919 53,898 49,635 35.70 5,445 209.9 3.60% 2009 6,720 55,269 45,430 36.30 6,249 208.5 7.30% 2010 6,447 52,197 44,709 36.60 6,181 212.4 8.80% 2011 6,388 51,854 48,618 34.00 6,147 220.3 8.60% 2012 6,393 51,874 48,485 35.70 6,408 224.6 8.10% 2013 6,434 52,460 50,416 36.00 6,524 230.8 5.40% 2014 6,478 52,920 57,927 37.10 6,713 237.2 4.20% 2015 6,536 53,580 61,522 36.50 6,804 240.0 3.10% 2016 6,570 53,928 64,581 36.70 6,901 246.6 2.80% 2017 NA NA NA NA 6,980 255.0 NA Notes: N/A = Information not available. Population information was compiled by the demographic section of the Colorado Division of Local Government and the U.S. Census Bureau. CPI and unemployment information was obtained from the U.S. Bureau of Labor Statistics. School district enrollment was obtained from the Eagle County School District administration office based on October Enrollment. Per Capita Personal Income obtained from Bureau of Economic Analysis, Regional Economic Accounts. EAGLE RIVER FIRE PROTECTION DISTRICT PRINCIPAL EMPLOYERS CURRENT YEAR Employer Employees Rank Vail Resorts, Inc. 3,500 1 Eagle County School District RE50J 1,180 2 The Ritz-Carlton Hotel CO LLC 335 3 Gallegos Masonry Inc. 328 4 Westin Riverfront Resort & Spa 285 5 Wal-Mart 253 6 Hyatt Corporation 250 7 City Market 145 8 Maya 143 9 Vail Valley Medical Center (Avon and Edwards) 140 10 Home Depot 120 11 Christie Lodge 107 12 The Charter at Beaver Creek 93 13 Town of Avon 91 14 The Club at Cordillera 60 15 Sources: Various Town of Avon Businesses, Department of Labor, Economic Council of Eagle County (1) The District did not begin collecting this data until 2009. (2) Due to the seasonal nature of the majority of the businesses in the District, these employers have provided estimated employee figures based on the ski season. (3) Total employment information on the District is not available. 2017 Notes: 74 75 THIS PAGE INTENTIONALLY LEFT BLANK 76 EAGLE RIVER FIRE PROTECTION DISTRICT FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function / Program 2008 2009 2010 2011 Support Services 2.00 3.00 3.00 3.00 Operations 43.00 52.00 50.00 50.00 Resident Intern Firefighter 21.00 15.00 12.00 17.00 Fire Prevention and Community Risk Management 3.00 3.00 1.00 1.00 Training 2.00 2.00 2.00 1.00 Total FTE 71.00 75.00 68.00 72.00 Source: Eagle River Fire Protection District Note: Full-time equivalent employees include ERFPD staffing for the Beaver Creek Metropolitan District service area. Full-time Equivalent Employees as of December 31 77 2012 2013 2014 2015 2016 2017 4.00 4.00 4.00 4.00 4.00 4.00 50.00 58.00 59.00 60.00 59.00 60.00 1.00 - - - - - 1.00 1.00 2.00 3.00 3.00 4.00 1.00 1.00 1.00 1.00 1.00 57.00 64.00 66.00 68.00 67.00 68.00 Full-time Equivalent Employees as of December 31 78 EAGLE RIVER FIRE PROTECTION DISTRICT OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2008 2009 2010 2011 Field Operations - Non-fire Calls 1,768 1,496 1,419 1,492 - Fire Calls 61 49 57 44 - Emergency Medical Calls 1,026 717 691 662 Support Services - Square Footage of Buildings Maintained 31,637 31,637 38,738 38,738 Fire Prevention Services - Fire Investigations 3 1 1 7 - Plan Reviews 204 111 152 147 - Burn/Firework Permits 14 25 13 19 - Company Inspections 138 189 178 53 - Public Education 23 44 59 86 Training Hours by Rank - Firefighter Training Hours 9,397 5,438 6,223 11,033 - Engineer Training Hours 3,349 3,223 2,009 2,014 - Officer Training Hours 4,618 4,249 3,449 2,424 Source: Eagle River Fire Protection District Note: Training hours include ERFPD employees for the Beaver Creek Metropolitan District Service area. Fiscal Year 79 2012 2013 2014 2015 2016 2017 1,410 1,496 1,465 1,361 1,571 1,484 51 63 66 64 62 52 628 685 826 894 928 904 38,738 38,738 37,198 43,172 43,172 34,325 8 10 14 17 11 9 124 141 160 90 151 140 27 31 11 13 10 11 97 81 38 56 108 102 57 56 58 53 39 83 3,055 3,383 4,188 3,767 4,709 2,856 1,588 2,224 2,758 2,537 2,944 2,095 2,219 3,095 3,062 2,267 2,769 2,210 Fiscal Year 80 EAGLE RIVER FIRE PROTECTION DISTRICT CAPITAL ASSET STATISTICS BY FUNCTION / PROGRAM LAST TEN FISCAL YEARS 2008 2009 2010 2011 Field Operations - Fire Stations 8 8 8 8 - Chief Vehicles 3 3 2 2 - Pumpers 9 9 9 8 - Tender 1 1 1 1 - Brush / Wildfire Trucks 4 4 4 4 - Rescue 1 1 1 1 - Ladder Trucks 1 1 1 1 Support Services - Administrative Offices 1 1 1 1 - Chief Vehicles 1 1 1 1 - Station Vehicles 4 4 7 7 Fire Prevention Services - Vehicles 3 3 1 1 - Public Education Display 1 1 1 1 Training - Vehicles 1 1 1 1 - Academy Staff Vehicle 1 1 1 1 - Training trailer 0 0 0 0 Special operations - Tech Rescue trailer 1 1 1 1 Source: Eagle River Fire Protection District Notes: (1) Four fire stations are staffed 24/7 year round. One fire station is used for employee housing. (2) Beaver Creek Metropolitan District fire station and vehicles are not included. Fiscal Year 81 2012 2013 2014 2015 2016 2017 8 8 7 6 6 5 2 3 3 3 3 2 7 6 8 7 7 7 1 1 1 1 1 1 3 4 4 3 3 3 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 0 2 2 2 2 2 2 6 5 7 6 7 7 1 1 2 3 3 4 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 Fiscal Year 82 THIS PAGE INTENTIONALLY LEFT BLANK