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CITY OF LONE TREE, COLORADO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended
December 31, 2022
Prepared by:
Department of Finance
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CITY OF LONE TREE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
For the Year Ended December 31, 2022
PAGE
TitlePage ........................................................................................................................................1
Tableof Contents.............................................................................................................................2
INTRODUCTORY SECTION
Letterof Transmittal............................................................................................................5
Certificate of Achievement................................................................................................1 l
OrganizationChart.............................................................................................................12
List of Principal Officials...................................................................................................13
FINANCIAL SECTION
Independent Auditor's Report............................................................................................14
Management's Discussion and Analysis ...........................................................................17
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position......................................................................................29
Statement of Activities...........................................................................................30
Fund Financial Statements:
Summaryof Funds.................................................................................................31
Balance Sheet - Governmental Funds....................................................................32
Reconciliation of the Balance Sheet- Governmental Funds
to the Statement of Net Position......................................................................33
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds.............................................................34
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities.....................................................................................35
Notes to Financial Statements......................................................................................36
Required Supplementary Information
General Fund - Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual.....................................................................104
Special Revenue Fund—Cultural and Community Services - Schedule of Revenues,
Expenditures and Changes in Fund Balances - Budget and Actual.....................110
Schedule of Proportionate Share of Net Pension Liability (Asset) - FPPA...............111
Schedule of Proportionate Share of Net Pension Liability (Asset) -PERA..............112
Schedule of Proportionate Share of Net OPEB Liability (Asset) - PERA ................113
Schedule of Contributions—FPPA Pension..............................................................114
Schedule of Contributions—PERA Pension..............................................................115
Schedule of Contributions PERA - OPEB.................................................................116
Notes to Required Supplementary Information.........................................................117
2
CITY OF LONE TREE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
For the Year Ended December 31, 2022
(Continued)
PAGE
Combining and Individual Fund Financial Statements and Schedules
Other Governmental Funds
Balance Sheet—Other Governmental Funds.............................................................119
Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Governmental Funds......................................................120
Non-Major Debt Service Funds
Debt Service Fund - Arts and Cultural Facilities - Schedule of Revenues,
Expenditures and Changes in Fund Balances - Budget and Actual.....................121
Debt Service Fund - Park and Recreation Improvements - Schedule of
Revenues, Expenditures and Changes in Fund Balances - Budget
andActual............................................................................................................122
Non-Major Special Revenue Fund
Special Revenue Fund—Lone Tree Arts Center Fund 501(c)(3) - Schedule of
Revenues, Expenditures and Changes in Fund Balances - Budget
andActual............................................................................................................123
Component Units
Park Meadows Business Improvement District—Combining Balance Sheet...........124
Reconciliation of the Balance Sheet- Park Meadows Business Improvement
District—Component Unit to the Statement of Net Position...............................125
Park Meadows Business Improvement District—Combining Statement of
Revenues, Expenditures and Changes in Fund Balances.....................................126
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of the Park Meadows Business Improvement
District - Component Unit to the Statement of Activities....................................127
Park Meadows Business Improvement District - General Fund -
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budgetand Actual................................................................................................128
Park Meadows Business Improvement District - Debt Service Fund-
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budgetand Actual................................................................................................129
Lone Tree Business Improvement District—Combining Balance Sheet ..................130
Reconciliation of the Balance Sheet Lone Tree Business Improvement
District—Component Unit to the Statement of Net Position...............................131
Lone Tree Business Improvement District—Combining Statement of
Revenues, Expenditures and Changes in Fund Balances.....................................132
3
CITY OF LONE TREE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
For the Year Ended December 31, 2022
(Continued)
PAGE
Component Units (Continued)
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of the Lone Tree Business Improvement
District - Component Unit to the Statement of Activities....................................133
Lone Tree Business Improvement District- General Fund-
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budgetand Actual................................................................................................134
Lone Tree Business Improvement District—Capital Projects Fund -
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budgetand Actual................................................................................................135
Other Supplementary Information
Schedule of Debt Service Requirements to Maturity ......................................................136
Local Highway Finance Report.......................................................................................137
STATISTICAL SECTION
Financial Trends
Net Position by Component (Table 1) .............................................................................140
Changes in Net Position (Table 2)...................................................................................141
Fund Balances, Governmental Funds (Table 3) ..............................................................142
Changes in Fund Balances, Governmental Funds (Table 4)............................................143
Revenue Capacity
Direct and Overlapping Sales Tax Rates (Table 5) .........................................................144
Sales Tax Revenue Payers by Industry (Table 6)............................................................145
Sales Tax Revenue Collections (Table 7)........................................................................146
Debt Capacity
Assessed Value and Estimated Actual Value of TaXable Property (Table 8)..................147
Property Tax Rates - Direct and Overlapping Governments (Table 9) ...........................148
Ratios of Outstanding Debt by Type (Table 10)..............................................................149
Revenue Bond Coverage (Table 11 a and b) ...................................................................150
Legal Debt Margin Information (Table 12).....................................................................152
General Obligation Debt - Direct and Overlapping Governments (Table 13).................153
Demographic and Economic Information
Demographic and Economic Statistics (Table 14)...........................................................154
Principal Employers (Table 15).......................................................................................155
Operating Information
Full-time Equivalent City Government Employees by Function/Program (Table 16)....156
Operating Indicators by Function/Program (Table 17)....................................................157
Capital Asset Statistics by Function/Program (Table 18)................................................158
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;, ITY OF
LONE TREE
.: O L O R A D O
cityoflonetree.com � 303.708.1818
9220 Kimmer Drive Suite 100, Lone Tree, CO 80124
June 20, 2023
Citizens of the City of Lone Tree,
Honorable Mayor, and
Honorable Members of Council
State law requires the City of Lone Tree (City) to publish within seven months of the close of the
fiscal year a complete set of financial statements presented in conformity with generally accepted
accounting principles in the United States of America (GAAP) and audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants. This
report is published to fulfill these requirements for the fiscal year ended December 31, 2022.
This report consists of management's representation concerning the finances of the City.
Responsibility for the accuracy of the data as well as the fairness and completeness of the
presentation, including all disclosures, rests with the City's management. To provide a
reasonable basis for making those representations, the City's management has established a
comprehensive framework of internal controls designed to protect the City's assets from loss,
theft or misuse and to compile sufficient reliable information for the preparation of the City's
financial statements in conformity with GAAP. Because the cost of internal controls should not
exceed anticipated bene�ts, the City's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements are
free from material misstatements.
Haynie & Company, a firm of licensed certified public accountants, has audited the City's
financial statements for the year ended December 31, 2022. The goal of the independent audit
was to provide reasonable assurance that the City's financial statements are free of material
misstatements. The audit involved performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements, 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. Based upon the audit,
the independent auditor concluded that there was a reasonable basis for rendering an unmodified
opinion on the City's financial statements for the year ended December 31, 2022. The
independent auditor's report is located at the front of the financial section of this report.
In addition to meeting the requirements set forth in state statutes, the audit included a federally
mandated Single Audit designed to meet the needs of federal grantor agencies (2 CFR 200
Uniform Guidance). The standards governing Single Audit engagements require the independent
auditor to report not only on the fair presentation of the financial statements, but also on the
government's internal controls and compliance with legal requirements involved in the
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administration of federal awards. The reports issued by the independent auditors are presented in
a separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is intended to be read in conjunction with the MD&A. The
City's MD&A immediately follows the independent auditor's report.
Profile of the City
The City is currently comprised of approximately 6,162 acres or 9.6 square miles and located in
the southern Denver metropolitan area at the junction of C-470/E-470 and I-25. With over
15,000 residents, the City is also home to a large and growing business community in the Denver
South region with a daytime population estimated at 30,000 people. The City's commitment to
quality development within its boundaries, beautiful surroundings, excellent recreational and
cultural opportunities, and flourishing economic community are the first things many people
notice about the City.
The City staff focuses on the Community Vision Statement which states: Lone Tree is a premier
Colorado community connected by great neighborhoods, vibrant public spaces, a beautiful
natural environment, and thriving businesses. Additionally, the organizational mission states: We
will achieve Lone Tree's community vision by doing things the best way, not just the expected
way. Along with the vision and mission statements, the City Manager is committed to six big
ideas. These six big ideas serve as the cornerstone of the Strategic Plan. In order to achieve the
vision and mission, the City will be a national model for:
1. Our deep, active commitment to public safety.
2. Our visionary transportation network.
3. Our welcoming, connected, and resilient community.
4. Our signature cultural and recreational opportunities, exceptional places, and beautiful
natural environment.
5. Our diverse and sustainable economy powered by top-tier businesses.
6. Our commitment to building the best team to support our innovative, customer-focused,
and efficient city government.
The City also identified a number of objectives that further define how we will achieve the big
ideas. Collectively, the vision, mission, big ideas and objectives form our Strategic Plan. The
Strategic Plan serves as our guide as we set priarities, assign responsibilities, set schedules and
budget for operating and capital expenditures.
The City is governed by a Council-Manager form of government where Council sets the City
policy, and the City Manager is responsible for City operations. The City consists of five
Council members, including the Mayor, elected in non-partisan elections. Each member serves a
staggered, four-year term and represents one of the two districts within the City except for the
Mayor, who serves as an at-large member. Policy-making and legislative authority are vested in
the Council.
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The City provides a full range of services including general government, police protection,
public works, capital project management and street and highway maintenance, planning and
building permit and inspections, zoning services, arts and cultural activities, and municipal court
services.
The City maintains budgetary controls that have the objective of ensuring compliance with legal
provisions embodied in the annual appropriated budget adopted by Council. The Council is
required to adopt a final budget no later than December 31 of each year. All activities of the
City, except for activities related to the Lone Tree Arts Center operations, as well as other City
sponsored events and cultural services, and funds held for the future repayment of debt related to
arts and cultural facilities and park and recreation improvements are accounted for in the General
Fund. The Lone Tree Arts Center operational activities and City sponsored events and cultural
services are accounted for in the Special Revenue Fund — Cultural and Community Services.
Revenue and expenditure activities related to the Cultural Facilities Bonds and the Park and
Recreation Bonds are accounted for separately in two separate Debt Service Funds. The
appropriation is at the total fund expenditures level. Additionally, the General Fund budget
presents expenditures by function (e.g., general government).
Local Economy
The City of Lone Tree continues to develop at a steady rate in both the residential and
commercial sectors. Major industries located within the City's boundaries, or in close proximity,
include retail trade, public administration, financial services, professional services, healthcare,
insurance and real estate. The City is located on the Southeast I-25 Corridor and within the
boundaries of the Denver South Economic Development Partnership, which includes 42 million
square feet of office space and employment of more than 300,000 people. Additionally, the City
is home to the Park Meadows Retail Resort, Colorado's only retail resort with over 200 unique
and national retailers and restaurants including Apple Store, Dillard's, LL Bean, Nordstrom,
Macy's, Tesla, Cheesecake Factory, PF Chang's, Season's 52, and Fogo de Chao. RidgeGate is a
3,500-acre master-planned community located within the City and is home to the Lone Tree
Recreation Center, the Lone Tree Arts Center as well as diverse retail, dining, office space, and
residential uses. In late 2022, Shea Homes commenced phase one of constructing single family
homes in the Lyric development. The City provides an important economic presence to the
region and State.
The City is also served by five Light Rail stations. They are a significant economic development
catalyst for the City and the region, generating additional commercial real estate, residences, and
new jobs in the southeast corridor. As expected, the investment in transit has prompted
development around these stations. One of the light rail stations, Sky Ridge Station, is adjacent
to the corporate campus of Kiewit Infrastructure as well as a new apartment development, Novus
at Sky Ridge, that includes 240 units. Furthermore, a multi-family development, Lincoln Station
Apartments, that includes 3,000 square feet of on-site retail space near the Lincoln light rail
station was approved by City Council in August of 2021, with construction starting in 2022 and
continuing into 2023. Additionally, the attainable housing development, Talus at RidgeGate was
completed in 2022 along with several projects that are under construction near the end of line
station at RidgeGate Parkway, including a senior living facility called The Reserve at Lone Tree,
a facility for housing and work opportunities for adults with intellectual and developmental
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disabilities called Tall Tales Ranch, as well as a 540 unit apartment/mixed-use development,
along with more projects under review for Council consideration in 2023.
The City's continued investment to improve the transportation network throughout the City has
been highlighted in previous years with the construction of multiple large projects. Projects
started or completed in 2022 included the Acres Green pedestrian and bike bridge, City-wide
pedestrian and bicycle safety improvements, the C-470 trail connection to the RTD Station, and
the I-25 / Lincoln interchange study (Advancing Lincoln Avenue). Projects such as these
continue to show the City's commitment to improving the transportation network and always
striving to move people through the City more effectively.
2022 was the sixth year of the Link On Demand shuttle service, which was the first of its kind in
the country. This service runs Monday - Saturday providing free door-to-door on-demand rides
within the Lone Tree City limits. The Link On Demand shuttle is accessible through its own
Link On Demand app. Link On Demand is an example of the City's proactive approach to
prepare for and encourage future economic growth and to mitigate related traffic impacts. The
City and its partner for the Link On Demand are investing in Lone Tree to ensure it remains a
premier community for both businesses and residents.
The City's largest revenue source are sales taxes which primarily fund the City's operations.
With the successful passing of ballot question 2E in November 2021, which temporarily
increases the City's sales and use tax by one percent far ten years to support public safety, capital
investments, parks and recreation, and other vital City services, we are excited for the
opportunities a stable revenue stream will provide. This tax increase will allow the City to
remain as a premier community today and in the future.
Through conservative revenue budgeting, as well as expenditure monitoring during 2022, the
City was able to end the year with a working reserve and capital replacement reserve pursuant to
City policies.
Relevant Financial Policies
In order to mitigate current and future risks such as revenue shortfalls and unanticipated
expenditures as well as to ensure stable tax rates, the City has established certain reserve
policies. Specifically, the City requires in its working reserve policy that a minimum
unrestricted fund balance of 16.7% of operating expenditures be maintained. For the year ended
December 31, 2022, the City's unrestricted working reserve totaled approximately 27%. The
City also adopted a capital reserve policy to ensure that the City maintains adequate cash fund
balances to help offset the cost of future capital replacement and project needs. The intent of the
capital reserve policy is to assist the City to take greater advantage of the "pay as you go"
philosophy versus relying entirely or mostly on debt financing. Additionally, City Council
approved an operational reserve in 2022, effective in 2023, for oversight purposes regarding the
accumulation and usage of funds related to the one percent temporary tax increment approved by
voters via ballot question 2E.
Additionally, City Council has established financial policies including a debt management policy
and an investments policy. These two policies were adopted by Council to continue to strengthen
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the financial framework of the City by following best practices. The debt management policy
was adopted as a result of the City understanding the importance of long-range financial
planning in order to meet its capital asset needs. The debt management policy establishes
parameters on the issuance of debt to help ensure that the City maintains a sound debt position
and that its credit rating is protected. The policy provides a framework relating to current
circumstances as they exist today as well as to address the City's future position relating to debt
management. The investment policy was adopted to establish parameters and guidelines for the
efficient management of the City's funds and for the purchase and sale of investments. Primary
objectives of the investment policy, in priority order, include safety of principal, liquidity and
return on investments.
Major Initiatives
Several major initiatives will have a significant impact on the financial future of the City of Lone
Tree. The development of RidgeGate, a 3,500-acre planned development based on `smart
growth' principles, will play an essential role to this end. Currently, RidgeGate is home to
approximately 4,400 residences, two major retail centers, a recreation center, the Lone Tree Arts
Center, the Sky Ridge Medical Center, the Charles Schwab corporate campus, and the corporate
campus of Kiewit Infrastructure.
As the west side of the RidgeGate planned development approaches build-out, the City is
planning for the development of the east side. This commenced with the RTD Southeast Light
Rail Extension that opened in May 2019. The long-term plan for this area is an urban, mixed-use
development with a capacity for approximately 10,000 new homes and 12 million square feet of
office, rental, and health care space as well as more than 600 acres of parks, trails, and natural
habitat. Developers estimate the expansion will create 40,000 new jobs and a new downtown.
In 2021, the RidgeGate Parkway Widening project was completed, which tripled the capacity of
RidgeGate Parkway. This project is an example of Lone Tree's proactive approach to
transportation needs. By completing the widening project in advance of development it can better
serve the future residents, businesses, and visitors east of I-25.
In 2019, Shea Homes announced their plan to build approximately 1,800 homes as the first
master-planned development in the City on the east side of I-25. In 2020, Shea Homes
preliminary plan for the Southwest Village, including extensive coordination and review of
associated plans was processed. In late 2022, Shea Homes commenced phase one of constructing
single family homes in the Lyric development.
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 City for its
Annual Comprehensive Financial Report for the year ended December 31, 2021. The Certificate
of Achievement is a national award recognizing conformance with the highest standards for
preparation of state and local government financial reports. In order to be awarded a Certificate
of Achievement, the City must publish an easily readable and efficiently organized Annual
Comprehensive Financial Report. The report must satisfy both GAAP and applicable legal
requirements. This was the City's fifteenth year to submit for and to receive the award. A
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Certificate of Achievement is valid for one year only. We believe this 2022 Annual
Comprehensive Financial Report continues to conform to the Certi�cate of Achievement
program requirements and will submit it to the GFOA to determine its eligibility for another
certificate.
The City of Lone Tree was the recipient of the Distinguished Budget Presentation Award for
excellence in municipal budget reporting by the GFOA for 2015 - 2022 with 2015 being the first
year the City applied for the award. This award represents a significant achievement by the City
and staff to meet the highest principles of governmental budgeting.
The preparation of this Annual Comprehensive Financial Report could not have been
accomplished without the efficient and dedicated service of the highly qualified personnel of the
finance division. Other departments of the City also played an instrumental role in the
preparation of this report. We wish to express our appreciation to everyone who assisted and
contributed in preparing the report. Additionally, we would like to acknowledge the thorough
and professional manner in which our independent auditors, Haynie and Company, conducted
their audit, as well as the citizen involvement and time commitment of the City's Audit
Committee. Finally, credit must be given to the City Council for their consistent support for
maintaining the highest standards of professionalism in the management of the City's finances.
Respectfully submitted,
�__1� I� i_,l.'L'� '�Y J� .��i"`<-- - _ -
l�-< �( �f"" --
Seth Hoffman Ulli Nierling
City Manager Finance Director
10
�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lone Tree
Colorado
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2021
��i�u�,e�w,. P• ���er�%��
Executive Director/CEO
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1 1 . . . � . � . .
Citizens of Lone Tree
Mayor and City Council
Municipal Court Judge
Commissions,Boards,and
City Attorney Committees(CBCs)
City Manager
Deputy City Manager Assistant City Manager
Finance Economic Development Information Technology
Community Development Police Department Communications
Public Works&Mobility Lone Tree Arts Center
City Clerk&Court
CITY OF LONE TREE
PRINCIPAL OFFICIALS OF THE CITY OF LONE TREE, COLORADO
December 31, 2022
CITY COUNCIL
Mayor................................................................................... Jacqueline A. Millet, At-Large
Mayor Pro-Tem...............................................................................Wynne Shaw, District 1
Council Members.......................................................................Marissa Harmon, District 1
Mike Anderson, District 2
Cathie Frazzini, District 2
MUNICIPALJUDGE .................................................................................................Louis Gresh
CITY OFFICIALS
CityManager ..................................................................................................Seth Hoffman
Deputy City Manager............................................................................Kristin Baumgartner
Finance Director................................................................................................Ulli Nierling
City Attorney .................................................................................................Linda Michow
Public Works & Mobility Director................................................................Justin Schmitz
Community Development Director......................................................................Kelly First
Chief of Police ...................................................................................................Kirk Wilson
Lone Tree Arts Center Executive Director...................................................Leigh Chandler
Director of Economic Development & Public Affairs ......................................Jeff Holwell
Assistant City Manager.....................................................................................Austin Good
CityClerk..........................................................................................................Rick Parsons
Communications Director....................................................................................Nate Jones
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, Haynie & 1221 W. Mineral Avenue, Suite 202
Company Littleton, C080120
, ` 303-734-4800
�� 303-795-3356
� -rtiffed PubGcAccountants � www.HaynieCPAs.com
���gementConsulta�-�'�
To the City Council
City of Lone Tree, Colorado
Opinion
We have audited the accompanying financial statements of the governmental activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City of Lone
Tree, Colorado (the "City"), as of and for the year ended December 31, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of Lone Tree, Colorado, as of December 31, 2022,
and the respective changes in financial position for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
We did not audit the financial statements of the Park Meadows Business Improvement District and the Lone Tree
Business Improvement District. Those statements were audited by other auditors whose reports have been
furnished to us, and our opinion, insofar as it relates to the amounts included for Park Meadows Business
Improvement District and the Lone Tree Business Improvement District, is based solely on the reports of the other
auditors.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of
the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern
within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
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Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or
in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the financial
statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that
we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion, budgetary comparison information and pension schedules, as listed in the table of contents, 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, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an 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 managemenYs 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The combining and individual nonmajor fund financial statements and
schedules, budgetary schedules, schedule of debt service requirements to maturity, the Local Highway Finance
Report and other schedules, listed in the table of contents are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and as
also not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules, budgetary schedules, debt
service requirements to maturity, Local Highway Finance Report and other schedules, listed in the table of
contents as supplementary information 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. The
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America by us and other auditors. In our opinion, the combining and individual nonmajor fund
15
financial statements and schedules, and component unit financial statements and schedules are fairly stated, in
all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we
do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 20, 2023, on our
consideration of City of Lone Tree's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering City of Lone Tree's internal control over financial reporting and compliance
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Littleton, Colorado
June 20, 2023
16
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CITY OF LONE TREE
Management's Discussion and Analysis
As management of the City of Lone Tree, City Council offers readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City for the year
ended December 31, 2022.
Financial Highlights
With regard to the primary government:
• Assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $194,940,914 at the close of the fiscal year.
• As of the close of the current fiscal year, the City's governmental funds reported
combined ending fund balances of$53,198,654.
• Total net position increased by $20,922,051 from 2021.
• Total cash and investments increased by $20,052,578 as compared to the prior year.
• Sales and use tax retail revenue increased by $16,499,269 as compared to the prior year.
• At the end of the current fiscal year, assigned and unassigned fund balance for the
General Fund totaled $40,927,880.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to financial
statements. This report also contains required supplementary information and schedules 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 City's finances, in a manner similar to
a private-sector business.
The statement of� net position presents information on all of the City's assets and deferred
outflows and liabilities and deferred inflows, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the
financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City'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.
17
Both of the government-wide financial statements identify functions of the City that are
principally to be supported by sales taxes (governmental activities). The governmental activities
of the City include general government, municipal court, community development, public works,
arts and cultural services, police, interest and related costs on long-term debt, and interest and
related costs on leases.
The government-wide financial statements can be found on pages 29-30 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 City,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. The funds of the City include 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 the 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.
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 Special Revenue Fund — Cultural and Community Services and Other
Governmental Funds. Other Governmental Funds include the Debt Service Fund - Arts and
Cultural Facilities, the Debt Service Fund - Park and Recreation Improvements and the Special
Revenue Fund — Lone Tree Art Center Fund 501(c)(3) (blended component unit). The initial
three funds are considered major funds, while the two Debt Service Funds, as well as the Lone
Tree Art Center Fund 501(c)(3) are considered nonmajor funds. Data for the Park Meadows
Business Improvement District and the Lone Tree Business Improvement District (discretely
presented component units) are provided in the form of combining statements located within the
supplementary information following the notes to the financial statements.
The City adopts an annual appropriated budget for its General Fund, Special Revenue Fund —
Cultural and Community Services, Debt Service Fund - Arts and Cultural Facilities and Debt
Service Fund - Park and Recreation Improvements. A budgetary comparison schedule has been
provided for each of these funds as supplemental information to demonstrate compliance with
the budgets.
The basic governmental fund financial statements can be found on pages 31-34 of this report.
18
Notes to 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 financial statements can be found on pages 35-103 of this report.
Required supplementary information. A budgetary comparison schedule has been provided in
this section for the General Fund and the Special Revenue Fund — Cultural and Community
Services to demonstrate compliance with the budgets. Also included in this section are additional
schedules related to the City's pension plans and other post-employment benefits (OPEB) as well
as the notes to required supplementary information. The budget schedules and notes are found
after the Notes to Financial Statements on pages 104-135 of this report.
Other supplementary information. Combined financial statements and budgetary comparison
schedules for the Debt Service Fund - Arts and Cultural Facilities, the Debt Service Fund - Park
and Recreation Improvements and the Special Revenue Fund — Lone Tree Art Center Fund
501(c)(3) are presented immediately following the required supplemental information.
Additionally, combined financial statements and schedules of the Park Meadows Business
Improvement District and the Lone Tree Business Improvement District are included in this
section. Furthermore, other supplementary information also includes schedules of debt service
requirements to maturity and a local highway finance report.
New GASB Pronouncements
The City implemented GASB Statement No. 87, Leases, in 2022 which increased the usefulness
of governments' financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows
of resources or outflows of resources based on the payment provisions of the contract. Under this
Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease
asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources,
thereby enhancing the relevance and consistency of information about governments' leasing
activities.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. The City's assets and deferred outflows of resources related to governmental
activities exceeded liabilities and deferred inflows of resources by $194,940,914 at the close of
the most recent fiscal year.
19
Net Position
2022 2021
Current Assets $ 59,953,988 $ 40,402,536
Capital Assets 147,009,780 150,618,493
Long-term Assets 4,625,341 1,849,944
Total Assets 211,589,109 192,870,973
Pension Related Amounts 4,093,333 3,935,629
OPEB Related Amounts 147,092 134,070
Refunded Bonds Related Amounts 123,269 246,538
Total Deferred Outflows of Resources 4,363,694 4,316,237
Other Liabilities 9,895,001 9,144,560
Long-term Liabilities 1,810,123 8,117,691
Total Liabilities 11,705,124 17,262,251
Pension Related Amounts 8,407,365 5,124,051
OPEB Related Amounts 172,589 166,277
RidgeGate Affordable Housing Project - Loan 617,306 615,769
Leases 109,505 -
Total Deferred Inflows of Resources 9,306,765 5,906,097
Net Investment in Capital Assets 144,254,915 145,232,645
Restricted Net Position 11,083,260 7,816,276
Unrestricted Net Position 39,602,739 20,969,941
Total Net Position $ 194,940,914 $ 174,018,862
20
I�-ET POSITIOI�-BI"CATEGOR�'
lim�estricted
21°=0
Resh�icted
6°a
Net Investuient in
Capital
7-1°o
The largest portion of the City's net position (74%) reflects its net investment in capital assets.
The City utilizes these capital assets to provide services to citizens. Consequently, these assets
are not available for future spending.
An additional portion of the City's net position (6%) represents resources that are subject to
restrictions on how they can be used and are not currently available for the City's ongoing
obligations (e.g., emergency TABOR reserve, Conservation Trust Fund, funds received from
litigation settlements, funds reserved for specific capital projects where funds were received in
2022 and will be spent in future years, and funds reserved for future debt service payments). The
remaining balance of unrestricted net position totaling $39,602,739 may be used to meet the
City's future expenditures.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position.
21
Change in Net Position
Revenue 2022 2021
Program Revenues
Charges for Services $ 3,947,891 $ 3,313,047
Operating Grants and Contributions 11,165,358 10,437,077
Capital Grants and Contributions 100,177 6,406,050
General Revenues
Sales and Use (Retail)Taxes 42,181,930 25,682,661
Oth e r Tax e s 3,733,826 2,834,180
Franchise Fees 1,302,889 1,137,127
Investment Earnings 671,563 10,489
Lease Revenue 45,190 -
Other 242,037 296,020
Total Revenues 63,390,861 50,116,651
Expenses
General Government 14,938,838 11,375,638
Municipal Court 226,058 296,674
Community Development 1,136,047 1,777,995
Public Works 14,435,353 11,359,384
P o I i ce 8,538,025 8,821,749
Arts and Cultural 2,843,509 2,935,663
Interest and Related Costs on Long-term Debt 213,533 259,634
Interest and Related Costs on Leases 137,447 -
Total Expenses 42,468,810 36,826,737
Change in Net Position 20,922,051 13,289,914
Net Position-Beginning 174,018,863 160,728,949
Net Position-Ending $ 194,940,914 $ 174,018,863
The City's net position related to governmental activities increased by $20,922,051 during the
current fiscal year. Several key highlights of the statement of activities during 2022 include the
following items:
• 2022 charges for services increased by $634,844 compared to the previous year primarily
due to increases in engineering fees, as well as planning and zoning fees related to new
development, in addition to increases in ticket sales, rental fees and concessions at the
Lone Tree Arts Center. The increase at the Lone Tree Arts Center is due to a full year of
programming and rentals in 2022, which was more limited in 2021 as a result of the
COVID-19 pandemic.
• Operating grants and contributions increased by $728,281 from 2021 to 2022 primarily
due to funding received for the Metropolitan Football Stadium Shareback due to the sale
22
of the Broncos franchise, increased transportation sharebacks from Douglas County, as
well as partner funds for the design work on the Advancing Lincoln Avenue project.
These increases in 2022 are offset by the Community Development Block Grant received
in 2021, which was extended as a long-term loan to support the RidgeGate affordable
housing project.
• Capital grants and contributions decreased by $6,305,873 from 2021 to 2022 largely due
to land conveyances to the City in 2021, as well as the timing of Intergovernmental
Agreements with City partners for the RidgeGate Parkway Widening project.
• Sales and use (retail) taxes increased by $16,499,269 from 2021 to 2022 mainly due to
the passing of ballot issue 2E at the November 2021 election, which temporarily
increases the City's sales and use tax by one percent for ten years, starting on January 1,
2022.
• Other taxes increased by $899,646 from 2021 to 2022 primarily due to lodging tax and
use tax on building materials; however, lodging tax revenue is still below 2019 pre-
pandemic levels.
• Investment earnings increased by $661,074 from 2021 to 2022 as a result of increased
interest rates and a higher investment balance.
• General government expenses increased by $3,563,200 from 2021 to 2022. This increase
is mainly attributable to an increase in sales and use tax revenue collected, which is
subject to several shareback agreements. The expense for shareback agreements is
captured in this section.
• Community development expenses decreased by $641,948 from 2021 to 2022 primarily
due to a $615,000 Community Development Block Grant, which was extended as a long-
term loan to support the RidgeGate affordable housing project in 2021.
• Public works expenses increased by $3,075,969 from 2021 to 2022 primarily due to
design costs related to the Advancing Lincoln Avenue project, which was mainly funded
by grants and partnership agreements, as well as costs related to the C-470 trail
connection to the RTD station. In addition, operating costs increased for snow removal,
traffic signal maintenance and facility repairs, largely due to the inflationary environment
in 2022.
• Interest and related costs on leases increased by $137,447 from 2021 to 2022 due to the
implementation of GASB pronouncement 87, Leases, which was implemented in 2022.
23
E�PEI�SES AND PROGRr1I�1 RE�-'EIVLTES-GO�-'ERT�1i fENTAL ACTI�-ITIES
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General Municipal Community Public works Police Arts and Interest on Interest on
government court development cultural long-term leases
debt
■Expenses 14.938.838 226.058 1.136,047 14.435.353 8.538.025 2.843.509 213,533 137.447
oProgrem Revenues 3248,402 39.177 1.584,344 7.689,196 680737 1.971,568 - -
i���L��Ls 13�'S()l'RC'L -(;U�'L1Lv�1LN1:�L AC,�i�i��rriLs
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24
GENERAL RE�'EVLTES BY SOLTRCE-GO�'ERNMENTaL ACTI�'ITIES
Franchise fees Other
Admissions tas 3% 2%
1%
Lodging tas
3%
L-se tax-building
materials
4%
L�se tas-retail
2o�a
Sales tas
85%
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City's financing requirements. In particular, assigned and unassigned fund balance
may serve as a useful measure of a government's net resources available for spending at the end
of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of$53,198,654. Of this amount, $40,927,880 constitutes assigned and unassigned
fund balance which is available for spending at the City's discretion.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the
assigned and unassigned fund balance of the General Fund was $40,927,880 out of a total fund
balance of$46,935,508.
The fund balance of the City's General Fund increased by $17,328,652 during the current fiscal
year. The key factors contributing to this increase were higher than budgeted sales and use tax
25
revenue due to the inflationary environment in 2022, along with multiple capital expenditures
that were budgeted in 2022 but are extending into 2023. Specifically, traffic signalization,
design work for Advancing Lincoln Avenue, the Acres Green Pedestrian and Bicycle Bridge
project, and the C-470 trail connection to the RTD station, which are all continuing into 2023. A
placeholder for an economic tax incentive program (ETIP) was also budged in 2022 but has been
moved to 2023. In addition, the budgeted contribution to South Suburban Park and Recreation
District for a joint pickle ball court capital project at the Lone Tree Recreation Center was moved
to 2023.
At the end of the current fiscal year, the Special Revenue Fund — Cultural and Community
Services reported a fund balance of$913,218. The fund balance increased by $607,122 largely
due to expenditures coming in lower than budgeted, as well as a transfer from the General Fund
to re-establish a fund balance that was depleted in a previous fiscal year to offset impacts of the
COVID-19 pandemic.
At the end of the current fiscal year, the Debt Service Fund - Arts and Cultural Facilities reported
a restricted fund balance of$2,652,214. The fund balance increased by $580,301 in 2022. This
balance is an accumulation of pledged revenues.
At the end of the current fiscal year, the Debt Service Fund - Park and Recreation Improvements
reported a restricted fund balance of $2,693,626. The fund balance increased by $451,375 in
2022. This balance is an accumulation of pledged revenues.
At the end of the current fiscal year, the Special Revenue Fund — Lone Tree Art Center Fund
501(c)(3) (LTACF) reported a fund balance of$4,088. The fund balance decreased by $3,894 in
2022 to cover general operating expenses associated with the LTACF. This is the fifth year of
operations for the Lone Tree Art Center fund 501(c)(3). Revenues generated by the fund are to
be used solely to fund the Lone Tree Arts Center.
General Fund Budgetary Highlights
The City's total revenue in the General Fund for 2022 came in under budget. The difference
between the final budgeted revenue of$57,610,196 and the actual revenue of $57,442,542 was
$167,654. The primary reason for this variance is due to timing of grant and partnership funding
for capital projects.
The City's General Fund total expenditures for 2022 did not exceed the budgeted appropriations.
The difference between the budgeted expenditures (exclusive of transfers out) of $54,224,197
and the actual expenditures of$38,696,313 was $15,527,884. The primary factors contributing
to this variance were a result of timing of certain capital projects continuing into 2023, such as
the Advancing Lincoln Avenue project, the Acres Green Pedestrian and Bicycle Bridge project,
the C-470 Trail Connection to the RTD Station project, a placeholder for an Economic Tax
Incentive Program (ETIP), as well as the capital contribution for a joint pickle ball court project
at the Lone Tree Recreation Center with South Suburban Park and Recreation.
26
Capital Assets
The City invested $4,079,437 in net capital assets for its governmental-type activities for the year
ended December 31, 2022. Investment in capital assets consisted of projects in 2022 including
street overlay, concrete panel replacements, facility improvements, storm sewer improvements,
and security fencing for police officer and equipment safety.
More information on the City's capital assets can be found in Note 8 on pages 57-58 of this
report.
Long-Term Debt
At the end of the fiscal year, the City had total outstanding debt of $2,810,000. This amount
represents debt secured for park and recreational improvements and the Lone Tree Arts Center.
At the end of the fiscal year, the Park Meadows Business Improvement District (PMBID) had
total outstanding debt of $8,575,641. This amount represents debt secured for capital
expenditures related to street, park and recreation, utility lines, transportation, and television
relay improvements.
Additional information on the City's long-term debt can be found in Note 9 on pages 59-63 of
this report.
Next Year's Budget
The City's 2023 adopted budget reflects the City Council's objective to continue to maintain and
enhance community connections and the high level of service that businesses and residents
expect. To accomplish this, a continued focus was given to the City's deep and active
commitment to public safety, a commitment of time and investment in planning for the future,
maintenance upgrades to the City's existing core infrastructure, capturing maximum value out of
previous investments, and the responsible management of the City's operating and capital
reserves.
The balanced budget reflects Council's desire for a fiscally sound budget that is built on
conservative revenue projections, as well as discretionary and necessary expenditure levels, and
required and reasonable reserves and designations. The adopted budget is in line with the City's
long-term projections as prepared during the 2E temporary tax increase initiative to ensure fiscal
stability over the next nine years.
The 2023 budget year will bring several exciting opportunities, with a majority of these
continuing to be possible due to the voter approved one percent temporary sales and use tax
increase. Examples include major investments in street overlay, traffic signalization
improvements, road improvements, as well as storm drainage projects. A continued focus will
be placed on public safety to include new positions, increased training opportunities, and vehicle
replacements to ensure police officers have the necessary resources to perform their jobs
effectively. The City will partner with South Suburban Parks and Recreation on a variety of
capital projects and continued design work of the new Regional Park. Finally, a focus in 2023
27
will result in various community benefits such as bike and pedestrian improvements, increased
Lone Tree Link Shuttle services, as well as City-funded community events. The City still sees
immense benefits from contracting for or partnering on a wide variety of City services, ranging
from trash removal to snow plowing to police dispatch. Contracting these services is still
financially prudent compared to what they would cost in staffing and capital facilities and
equipment.
Requests for Information
This financial report is designed to provide a general overview of the City of Lone Tree's
finances for all those with an interest in the City's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to: City of Lone Tree, 9220 Kimmer Drive, Suite 100, Lone Tree, Colorado 80124.
28
BASIC FINANCIAL STATEMENTS
CITY OF LONE TREE
STATEMENT OF NET POSITION
December 31,2022
Primary
Government Component Unit Component Unit
Governmental Park Meadows Business Lone Tree Business
Activities Improvement District Improvement District
ASSETS
Cash and Investments $ 38,886,591 $ 7,163,071 $ 364,042
Cash and Investments-Restricted 14,797,332 1,276,378 -
Receivables:
Intergovernmental 790,925 1,646,843 1,639
Sales,Use,Admissions and Lodging Taxes 4,928,992 - -
Other 163,272 - -
Prepaid Items 386,876 85,583 551
Property Taxes Receivable - - 257,278
Loans Receivable 617,306 - -
Lease Receivable ll4,233 - -
Capital Assets:
Non-Depreciable 39,812,816 - -
Depreciable,Net 107,196,964 25,024,005 -
Net Pension Asset-FPPA 2,939,162 - -
Net Pension Asset-PERA 624,887 - -
Right to Use Leased Asset 329,753 - -
Total Assets 211,589,109 35,195,880 623,510
DEFERRED OUTFLOWS OF RESOURCES
Pension Related Axnounts 4,093,333 - -
OPEB Related Amounts 147,092 - -
Refunded Bonds Related Amounts 123,269 85,549 -
Total Deferred Outflows of Resources 4,363,694 85,549 -
LIABILITIES
Accounts Payable 5,791,808 152,768 21,777
Unearned Revenue 438,061 - -
Retainage Payable 95,829 - -
Surety Deposits Payable 414,144 - -
Other Deposits Payable 15,491 - -
Accrued Interest Payable 9,859 22,868 -
Noncurrent Liabilities
Due within One Year 3,062,202 1,473,200 -
Due within One Year-Leases 67,607
Due in More than One Year:
Other Noncurrent Liabilties 1,051,459 19,706,471 -
Lease Liability 270,099 - -
Net Liability-OPEB 488,565 - -
Total Liabilities 11,705,124 21,355,307 21,777
DEFERRED INFLOWS OF RESOURCES
Pension Related Amounts 8,407,365 - -
OPEB Related Amounts 172,589 - -
RidgeGate Affordable Housing Project-Loan 617,306 - -
Leases 109,505 - -
Property Taxes - - 257,278
Total Deferred Inflows of Resources 9,306,765 - 257,278
NET POSITION
Net Investment in Capital Assets 144,254,915 3,844,334 -
Restricted:
Emergency Reserve(TABOR) 1,656,153 246,800 7,610
Conservation Trust 572,137 - -
Brick Fence Replacement 986,200 - -
Advancing Lincoln Avenue 659,636 - -
Metropolitan Football Stadium 1,010,137
Acres Green Pedestrian/Bicycle Bridge 853,157 - -
Debt Service 5,345,840 1,029,578 -
Resh-icted Total 11,083,260 1,276,378 7,610
Unresh-icted 39,602,739 8,805,410 336,845
Total Net Position $ 194,940,914 $ 13,926,122 $ 344,455
These financial statements should be read only in connection with
the accompanying Notes to Financial Statements.
29
CITY OF LONE TREE
STATEMENT OF ACTIVITIES
Year Ended December 31,2022
Net(Expense)Revenue and Changes in Net Position
Primary
Program Revenues Government Component Unit Component Unit
Operating Capital Grants
Charges for Grants and and Governmental Park Meadows Business Lone Tree Business
Functions/Programs Expenses Services Contributions Contributions Activities Improvement District Improvement District
Primary Government:
Governmental Activities:
General Government $ 14,938,838 $ 164,717 $ 2,983,508 $ 100,177 $ (11,690,435) $ - $ -
Municipal Court 226,058 39,177 - - (186,881) - -
Community Development 1,136,047 1,580,425 3,919 - 448,297 - -
Public Works 14,435,353 539,577 7,149,619 - (6,746,157) - -
Police 8,538,025 372,779 307,958 - (7,857,288) - -
Arts and Cultural Services 2,843,509 1,251,215 720,353 - (871,941) - -
Interest and Related Costs on Long-Term Debt 213,533 - - - (213,533) - -
Interest and Related Costs on Leases 137,447 - - - (137,447)
TotalPrimaryGovernment $ 42,468,810 $ 3,947,891 $ 11,165,358 $ 100,177 (27,255,384) - -
Component Unit:
Park Meadows Business Improvement District:
General Government $ 4,862,478 $ - $ - $ 3,052,427 (1,810,051) -
Interest on Long-Term Debt 289,196 - - - (289,196) -
Total Component Unit $ 5,151,674 $ - $ - $ 3,052,427 (2,099,247) -
Component Unit:
Lone Tree Business Improvement District:
General Government $ 287,O13 $ - $ - $ - (287,013)
Total Component Unit $ 287,013 $ - $ - $ - (287,013)
General Revenues:
Sales Tax 40,975,351 7,802,886 -
Use Tax-Retail 1,206,579 - -
Use Tax-Building Materials 1,727,013 89,237 -
Lodging Tax 1,575,329 - -
Admissions Tax 339,902 - -
Franchise Fees 1,302,889 - -
Cigarette Tax 91,582 - -
Sales Tax and Liquor Licenses 68,236 - -
Property Tax - - 218,000
Investment Earnings 671,563 15,106 (880)
L,ease Revenue 45,190
Other 173,801 397,217 22,842
Total General Revenues 48,177,435 8,304,446 239,962
Change in Net Position 20,922,OS1 6,205,199 (47,OS1)
Cumulative Effect of a Change in Accounting Principle - -
Net Position-Beginning 174,O18,863 7,720,923 391,506
Net Position-Ending $ 194,940,914 $ 13,926,122 $ 344,455
These financial statements should be read only in connection with
the accompanying Notes to Financial Statements.
30
SUMMARY OF FUNDS
Major governmental funds include the General Fund and any governmental fund that comprises
10% or more of a total governmental fund classification (assets and deferred outflows, liabilities
and deferred inflows, revenues or expenditures) and at least 5% of the combined governmental
and enterprise funds total for the same classification.
MAJOR FUNDS
General Fund
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government except those required to be accounted for in another fund.
Special Revenue Fund—Cultural and Community Services
The Special Revenue Fund — Cultural and Community Services is used to account for revenues
and expenditures related to the operations of the Lone Tree Arts Center, as well as other City
sponsored events and cultural services. Revenue reported in this fund include all sales at the
Lone Tree Arts Center, which include ticket sales and related fees, rental fees, concessions,
donations, and grants.
NON-MAJOR FUNDS
Other Governmental Funds
The Other Governmental Funds column is an aggregate of the following non-major
governmental funds:
• Debt Service Funds
The Debt Service Fund - Arts and Cultural Facilities
The Debt Service Fund - Park and Recreation Improvements
• Special Revenue Fund
Special Revenue Fund—Lone Tree Arts Center Fund 501(c)(3)
Detailed schedules can be found in the "Combining and Individual Fund Financial Statements
and Schedules" section of this report.
31
CITY OF LONE TREE
BALANCESHEET
GOVERNMENTAL FUNDS
December 31,2022
Special
Revenue-
Cultural and Other Total
Community Governmental Governmental
General Services Funds Funds
ASSETS
Cash and Investments $ 37,622,697 $ 1,263,894 $ - $ 38,886,591
Cash and Investments-Restricted 9,854,777 - 4,942,555 14,797,332
Receivables:
Intergovernmental 790,925 - - 790,925
Sales,Use,Admissions and Lodging Taxes 4,454,000 - 474,992 4,928,992
Other 58,513 102,709 2,050 163,272
Prepaid items 270,208 116,668 - 386,876
Due from Other Funds 65,317 - - 65,317
TOTAL ASSETS $ 53,116,437 $ 1,483,271 $ 5,419,597 $ 60,019,305
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable $ 5,666,964 $ 56,675 $ 68,169 $ 5,791,808
Unearned Revenue - 436,561 1,500 438,061
Retainage Payable 95,829 - - 95,829
Surery Deposits Payable 414,144 - - 414,144
Other Deposit Payable 3,991 11,500 - 15,491
Due to Other Funds - 65,317 - 65,317
Total Liabilities 6,180,928 570,053 69,669 6,820,650
FUND BALANCES
Non-Spendable 270,208 116,668 - 386,876
Restricted 5,737,420 - 5,345,840 11,083,260
Committed - 796,550 4,088 800,638
Assigned 14,278,327 - - 14,278,327
Unassigned 26,649,553 - - 26,649,553
Total Fund Balances 46,935,508 913,218 5,349,928 53,198,654
TOTAL LIABILITIES AND FUND BALANCES $ 53,116,436 $ 1,483,271 $ 5,419,597 $ 60,019,304
These financial statements should be read only in connection with
the accompanying Notes to Financial Statements.
32
CITY OF LONE TREE
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
December 31, 2022
Amounts reported for governmental activities in the statement of net position are different because:
Total Fund Balance - Governmental Funds $ 53,198,654
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the funds. 147,009,780
Other long-term assets are not current financial resources available to pay
current period expenditures and, therefore, are not reported in the funds.
Net Pension Asset- FPPA 2,939,162
Net Pension Asset-PERA 624,887
Net Right to Use Leased Asset 329,753
Lease Receivable 114,233
Loans Receivable - RidgeGate Affordable Housing Project 617,306
Deferred outflows and inflows of resources that represent acquisition or consumption
of net position that applies to future periods and, therefore, are not reported
in the funds.
Deferred Outflows -Pension Plan 4,093,333
Deferred Outflows - OPEB 147,092
Deferred Outflows - Refunded Bonds 123,269
Deferred Inflows - Pension Plan (8,407,365)
Deferred Inflows - OPEB (172,589)
Deferred Inflows - RidgeGate Affordable Housing Project - Loan (617,306)
Deferred Inflows - Leases (109,505)
Noncurrent liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
Bonds Payable (2,810,000)
Accrued Interest on Bonds Payable (9,859)
Bond Premiums (Net of Amortization) (68,132)
Net OPEB Liability- PERA (488,565)
Lease Liability (337,706)
Compensated Absences (1,235,528)
Net Position of Governmental Activities $ 194,940,914
These financial statements should be read only in connection with
the accompanying Notes to Financial Statements.
33
CITY OF LONE TREE
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended December 31,2022
Special
Revenue-
Cultural and Other Total
Community Governmental Governmental
General Services Funds Funds
REVENUES
Taxes $ 41,980,958 $ - $ 3,843,217 $ 45,824,175
Franchise fees 1,302,889 - - 1,302,889
Intergovernmental 10,446,205 - - 10,446,205
Licenses,Fees and Charges 2,188,240 - - 2,188,240
Fines and Forfeitures 393,404 - - 393,404
Net Investment Income 583,217 - 81,780 664,997
Tenant Rental Income 164,717 - - 164,717
Arts and Cultural - 1,971,568 68,169 2,039,737
Other 382,912 - - 382,912
Total Revenues 57,442,542 1,971,568 3,993,166 $ 63,407,276
EXPENDITURES
Current
General Govemment 5,051,387 - - 5,051,387
Municipal Court 309,076 - - 309,076
Communiry Development 1,305,370 - - 1,305,370
Police 9,395,393 - - 9,395,393
Public Warks 6,876,849 - - 6,876,849
Arts and Cultural Services - 2,828,322 72,063 2,900,385
Debt Service
Bond Interest - - 233,300 233,300
Bond Principal - - 2,620,000 2,620,000
Paying Agent Fees - - 800 800
Capital Outlay 15,758,238 - - 15,758,238
Total Expenditures 38,696,313 2,828,322 2,926,163 44,450,798
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 18,746,229 (856,754) 1,067,003 18,956,478
OTHER FINANCING SOURCES(USES)
Transfers In 39,221 1,463,876 - 1,503,097
Transfers Out (1,463,876) - (39,221) (1,503,097)
Lease Inception 7,078 - - 7,078
Total OtherFinancing Sources(Uses) (1,417,577) 1,463,876 (39,221) 7,078
NET CHANGE IN FUND BALANCES 17,328,652 607,122 1,027,782 18,963,556
FUND BALANCES-
BEGINNING OF YEAR 29,606,856 306,096 4,322,146 34,235,098
FUND BALANCES-
END OF YEAR $ 46,935,508 $ 913,218 $ 5,349,928 $ 53,198,654
These financial statements should be read only in connection with
the accompanying Notes to Financial Statements.
34
CITY OF LONE TREE
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Year Ended December 31,2022
Amounts reported for governmental activities in the statement of
activities are different because:
Net Change in Fund Balances-Total Governmental Funds $ 18,963,556
Governmental funds report capital outlays as expenditures. However,in the
statement of activities,the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital Asset Additions 4,135,996
Depreciation Expense (7,744,709)
The issuance of long-term debt(e.g.bonds)provides current financial
resources to governmental funds,while the repayment of the principal of long-tertn
debt consumes the current financial resources of governmental funds. Neither
transaction,however,has any effect on net position.Also,governmental funds
report the effect of bond refundings,premiums,discounts,and similar items when debt is,
issued,whereas these amounts are deferred and amortized in the statement of activities.
Bond Principal 2,620,000
Bond Premiums-Amortization 134,252
Refunded Bonds-Amortization (123,269)
Some revenue and expenses reported in the statement of activities do not require the use of
current financial resources and,therefore, are not reported as revenue or expenditures in the
governmental funds.
Compensated Absences-Change in Liability (18,137)
Pension Revenue 2,913,515
OPEB Revenue 34,489
Lease Net Revenue(Expense) (3,225)
Accrued Interest on Bonds-Change in Liability 9,583
Changes in Net Position of Governmental Activities $ 20,922,051
These financial statements should be read only in connection with
the accompanying Notes to Financial Statements.
35
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 1 -DEFINITION OF REPORTING ENTITY
The City of Lone Tree, Colorado (City) was incorporated by general election on November 7,
1995. The citizenry voted to become a home rule city on May 5, 1998, under the provisions of
Article XX of the Constitution of the State of Colorado. The City operates under a Council-
Manager form of government and provides the following services as authorized by its charter:
building, permitting, planning and zoning, public works (including trash removal service), public
safety (police protection and animal control) and general government activities including
administration, finance, communications, cultural, recreation and municipal court.
The City follows the Governmental Accounting Standards Board (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.
As required by generally accepted accounting principles (GAAP), these financial statements
present the City (the primary government) and its component units.
The City arganized the Park Meadows Business Improvement District(PMBID) in October 2006
for the purpose of providing public improvements within the boundaries of the operations area of
the PMBID as defined by Ordinance approved by City Council. The PMBID will receive a
portion of the sales taxes generated by the Park Meadows Mall (see Note 11 & 13) for the
purpose of funding such improvements. The PMBID is comprised of five board members
appointed by City Council. The PMBID is required to submit an annual operating plan and
budget for City Council approval. Due to the fact that the PMBID's governing body is appointed
by City Council along with its fiscal dependence of receiving funds from the City, the PMBID is
considered to be a component unit of the City but does not meet the definition of an integral part
of the primary government. Therefore, the PMBID is included and presented as a discretely
presented component unit of the City.
The formation of the Lone Tree Business Improvement District (LTBID) was initiated by
commercial business owners and approved by the City on September 1, 2015. The LTBID was
created to assist with the financing, construction, operation, marketing and maintenance of public
improvements and public services intended to maintain and improve the economic performance
of business entities located within the LTBID. The LTBID is governed by a Board of Directors
who are appointed by, and may be removed by, City Council. The LTBID must submit an annual
operating plan and budget for City Council approval by September 30th of each year per State
statute. Since the LTBID's governing body is appointed by City Council and the City has the
ability to impose its will, the LTBID is considered to be a component unit of the City but does
36
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 1 -DEFINITION OF REPORTING ENTITY (CONTINUED)
not meet the definition of an integral part of the primary government. Therefore, the LTBID is
included and presented as a discretely presented component unit of the City.
The City organized the Lone Tree Arts Center Fund 501(c)(3) (LTACF) on October 3, 2017 for
the purpose of fundraising to benefit the Lone Tree Arts Center. The LTACF will be operated by
the City and the City may provide operational support to the LTACF. The funds raised by the
LTACF will be granted to the Lone Tree Arts Center on an annual basis. The Mayor, City
Manager, and Executive Director of the Lone Tree Arts Center will serve as ex officio directors
as long as they serve in that office or capacity. The board of directors will be appointed by the
City Council. The initial board terms were staggered in one, two, and three-year terms. Any
appointments made after the inaugural board are three-year terms. Since the LTACF's governing
body is appointed by City Council and the City has the ability to impose its will, the LTACF is
considered to be a component unit of the City but does not meet the definition of an integral part
of the primary government. Since the LTACF was established to exclusively benefit the primary
government, the LTACF is considered a blended component unit and is reported herein in a
special revenue fund.
For additional information on the individual component units or to obtain a copy of their
individual reports, please contact the City's Finance Department at 303-708-1818 or 9220
Kimmer Dr., Suite 100, Lone Tree, CO 80124.
The following services are provided to residents of the City, by the following entities, which are
not component units of the City:
• Water and sewer services are provided by Southgate Water and Sanitation District and
Northern Douglas County Water Sanitation District.
• Fire protection services are provided by South Metro Fire Rescue Authority.
• Parks and recreation services are provided by South Suburban Parks and Recreation
District.
• Street construction and landscaping maintenance of right of way are partially provided by
Park Meadows Metropolitan District (PMMD).
• Rampart Range Metropolitan Districts 1-9 (RRMD) provide financing for water, sewer,
streets,parks and storm drainage in the areas within RRMD, in the City (see Note 13).
• Heritage Hills Metropolitan District (HHMD) provided financing for public infrastructure
within HHMD, in the City, and currently provides certain landscaping maintenance.
37
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant accounting policies of the City are described as follows:
Government-Wide and Fund Financial Statements
The government-wide �nancial statements include the statement of net position and the
statement of activities. These financial statements report all of the activities of the primary
government and its component units except for the fiduciary activities. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities are
normally supported by sales taxes and intergovernmental revenues. Likewise, the primary
government is reported separately from the legally separate component units for which the
primary government is financially accountable.
The statement of net position reports all financial and capital resources of the primary
government and its component units. The difference between the assets and deferred outflows
and liabilities and deferred inflows of the City is reported as net position.
The statement of activities demonstrates the degree to which the direct and indirect 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.
Separate financial statements are provided for the governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Grants and similar items are recognized as revenues as soon as all eligibility requirements
imposed by the provider have been met. Depreciation is computed and recorded as an operating
expense. Expenditures for property, equipment and infrastructure are shown as increases in
assets, and redemption of bonds are recorded as a reduction in liabilities.
38
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within a reasonable period (typically within 60 days) following the end of the current
fiscal period. The major sources of revenue susceptible to accrual are sales, use, lodging and
admissions taxes. All other revenue items are considered to be measurable and available only
when cash is received by the City. Expenditures, other than interest on long-term obligations, are
recorded when the liability is incurred or the long-term obligation due.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial
resources of the general government except those required to be accounted for in another
fund.
The Special Revenue Fund — Cultural and Community Services is used to account for
revenues and expenditures related to the operations of the Lone Tree Arts Center, as well
as other City sponsored events and cultural services. Revenue reported in this fund
include all sales at the Lone Tree Arts Center, which include ticket sales and related fees,
rental fees, concessions, donations, and grants.
The City reports the following non-major governmental funds:
The Debt Service Fund - Arts and Cultural Facilities is used to account for the resources
accumulated and payments made for principal and interest on long-term debt related to
arts and cultural facilities improvements.
The Debt Service Fund - Park and Recreation Improvements is used to account for the
resources accumulated and payments made for the principal and interest on long-term
debt related to park and recreational improvements.
The Special Revenue Fund—Lone Tree Arts Center Fund 501(c)(3) is used to account for
revenues and expenditures related to the operation of the 501(c)(3). Revenue reported in
this fund represents contributions received during the year that support the Lone Tree
Arts Center.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.
39
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided; 2) operating grants and contributions; and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
When both restricted and unrestricted resources are available, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
Budgets
In accordance with the State Budget Law, the City Council holds public hearings in the fall each
year to approve the budget and appropriate the funds for the ensuing year. The appropriation is at
the total fund expenditures level and lapses at year end. The City Council can modify the budget
by line item within the total appropriation without notification. The appropriation can only be
modified upon completion of notification and publication requirements. The budget includes
each fund on its basis of accounting, unless otherwise indicated. Budgets for all governmental
funds are adopted on a basis consistent with GAAP. Unused appropriations lapse at the end of
each fiscal year.
During the year ended December 31, 2022, supplementary budget amendment appropriations
approved by City Council increased from $51,649,689 to $55,727,619 in the General Fund,
$3,145,536 to $3,209,293 in the Special Revenue Fund— Cultural and Community Services, and
$1,628,600 to $1,878,600 in the Debt Service Fund—Park and Recreation Improvements. There
were no supplementary budget amendment appropriations in the Debt Service Fund — Arts and
Cultural Facilities.
During the year ended December 31, 2022, supplementary budget amendment appropriations
approved by the Board increased from $5,163,085 to $7,987,805 for the PMBID.
During the year ended December 31, 2022, there were no supplementary budget amendment
appropriations for the LTBID.
Pooled Cash and Investments
The City follows the practice of pooling cash and investments of all funds to maximize interest
earnings. Except when required by trust or other agreements, all cash is deposited to and
disbursed from a single bank account. Cash in excess of immediate operating requirements is
pooled for deposit and investment flexibility. Investment earnings are allocated periodically to
the participating funds based upon each fund's average equity balance in the total cash.
Investments are carried at fair value.
40
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Interfund Balances
The City reports interfund balances that are representative of lending/borrowing arrangements
between funds in the fund financial statements as due to/from other funds. The interfund
balances have been eliminated in the government-wide statements.
Capital Assets
Capital assets, which include property, equipment, and infrastructure assets (e.g., roads,
sidewalks and similar items) are reported in the applicable governmental activities column in the
government-wide financial statements. Capital assets are defined by the City as assets with an
initial, individual cost of more than $5,000. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at the
acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Improvements are capitalized and depreciated
over the remaining useful lives of the related capital assets, as applicable. Depreciation expense
has been computed using the straight-line method over the estimated economic useful lives:
Buildings and building improvements 3 - 50 years
Equipment 3 - 15 years
Vehicles 5 - 10 years
Infrastructure 10 - 50 years
Intangibles 40 years
Amortization
Original Issue Discount/Premium
In the government-wide financial statements, bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts 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.
41
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences
The City has a policy that allows employees to accumulate unused paid time off(PTO) benefits
up to certain maximum hours based on years of service. Compensated absences are accrued
when incurred in the government-wide financial statements. The City's General Fund is used to
liquidate compensated absences of the governmental activities.
Accounts Receivable
No allowance of doubtful accounts have been provided. Bad debts are expensed when deemed
uncollectible. Management has evaluated the accounts and believes they are all collectible.
Unearned Revenue
Unearned revenue in the government-wide and the fund financial statements consists of unearned
rental fees, ticket sales and unredeemed gift cards for the Lone Tree Arts Center.
Property Taxes
Property taxes are levied by the LTBID's Board of Directors. The levy is based on assessed
valuations determined by the County Assessor generally as of January 1 of each year. The levy is
normally set by December 15 by certification to the County commissioners to put the tax lien on
the individual properties as of January 1 of the following year. The County Treasurer collects the
determined taxes during the ensuing calendar year. The taxes are payable by April or if in equal
installments, at the taxpayer's election, in February and June. 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 LTBID.
Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred inflow of
resources in the year they are levied and measurable. The unearned property tax revenues are
recorded as revenue in the year they are available or collected.
42
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 ou�ows of
resources, represents a consumption of net position that applies to a future period and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The City has three
items that qualify for reporting in this category. The first two are shown as pension and OPEB-
related amounts that include items related to the City's portion of the Colorado Fire and Police
Pension Association (FPPA), Colorado Public Employees Retirement Association (PERA) and
Colorado PERA Health Care Trust Fund (HCTF) benefit plans. This includes the difference
between expected and actual experience, any changes of assumptions or other inputs, the net
difference between projected and actual investment earnings on pension plan investments, the
change in employer allocation percentage, the difference between the actual contributions and
proportionate share of total contributions, as well as the amortization related to the difference,
and the related contributions subsequent to the measurement date (see Notes 14 - 16). The third
is shown as refunded bonds related amounts that includes the gain or loss from the original bonds
as a result of the refunding that will be deferred over the life of the refunded bonds (see Note 9).
In addition to liabilities, the balance sheet 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 and so will not be
recognized as an inflow of resources (revenue) until that time. The first two are shown as
pension- and OPEB-related amounts that include items related to the City's portion of the
Colorado Fire and Police Pension Association (FPPA), Colorado Public Employees Retirement
Association (PERA), and Colorado PERA Health Care Trust Fund (HCTF) benefit plans. This
includes the difference between expected and actual experience, any changes of assumptions or
other inputs, the net difference between projected and actual investment earnings on pension plan
investments, the change in employer allocation percentage, the difference between the actual
contributions and proportionate share of total contributions, as well as the amortization related to
the difference, and the related contributions subsequent to the measurement date (see Notes 14 -
16). The third is shown as RidgeGate Affordable Housing Project, which is related to a loan
receivable. This amount will not be recognized as an inflow of resources (revenue) until the
amount becomes available (see Note 7). The fourth is shown as Leases, which is related to a
lease receivable. This amount is recognized as an inflow of resources in the period that the
revenue is earned (see Note 6). Lastly, the Lone Tree Business Improvement District has one
item shown in this category as deferred property tax revenue. This amount is deferred and
recognized as an inflow of resources in the period that the amounts become available.
43
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balances
Fund balance for governmental funds should be reported in classifications that comprise a
hierarchy based on the extent to which the government is bound to honor constraints on the
specific purposes for which spending can occur. Governmental funds report up to five
classifications of fund balance: nonspendable, restricted, committed, assigned, and unassigned.
Because circumstances differ among governments, not every government or every governmental
fund will present all of these components. The following classifications describe the relative
strength of the spending constraints, from most restrictive to least:
• Nonspendable fund balance— The portion of fund balance that cannot be spent because it
is either not in spendable form (such as prepaid amounts or inventory) or legally or
contractually required to be maintained intact.
• Restricted fund balance — The portion of fund balance that is constrained to being used
for a specific purpose by external parties (such as bondholders, grantors, contributors or
laws or regulations of other governments), constitutional provisions, or enabling
legislation.
• Committed fund balance—The portion of fund balance that can only be used for specific
purposes pursuant to constraints imposed by formal action of the government's highest
level of decision-making authority, City Council. The constraint may be removed or
changed only through formal action of City Council. City Council will either pass an
ordinance or resolution as the highest level of decision-making dependent on the subject
matter. An ordinance requires the matter to be added to the City's municipal code,
whereas a resolution does not require this action, but depending on the subject matter,
both are equally binding. Additionally, City Council has adopted a Council Adopted
Policy to commit fund balance. Resolution #11-25, which establishes that any remaining
fund balance related to the Lone Tree Art Center will be committed to be used solely to
fund the Lone Tree Art Center.
44
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Assigned fund balance — The portion of fund balance that is constrained by the
government's intent to be used for specific purposes but is neither restricted nor
committed. Intent is expressed by the City Council to be used for a specific purpose.
Constraints imposed on the use of assigned amounts are more easily removed or modified
than those imposed on amounts that are classified as committed. City Council has
approved an Intergovernmental Agreement with Douglas County for an emergency
disaster management reserve, as well as setting requirements as part of the site
improvement application process for park fees in lieu of land dedication. Additionally,
City Council has adopted a Council Adopted Policy to assign fund balance. CAP #12-02,
the Capital Reserve Policy, establishes reserves for future capital replacement and project
needs.
• Unassigned fund balance — The residual portion of fund balance that does not meet any
of the criteria described above. Additionally, the unassigned fund balance is generally a
negative amount, except for in the general fund, which reports a positive unassigned fund
balance amount. The negative amount is appropriate in other governmental funds
(excluding the general fund) if the expenditures incurred for specific purposes exceed the
amounts that are restricted, committed, or assigned to those purposes.
If more than one classification of fund balance is available for use when an expenditure is
incurred, it is the City's policy to use the most restrictive classification first.
45
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 3 - CASH AND INVESTMENTS
Cash and investments as of December 31, 2022 are classified in the accompanying financial
statements as follows:
Park
Meadows Lone Tree
BID BID
Primary Component Component
Government Unit Unit
Statement of Net Position:
Cash and Investments $ 38,886,591 $ 7,163,071 $ 364,042
Cash and Investments —Restricted 14,797,332 1,276,378 -
Total Cash and Investments $ 53,683,923 $ 8,439,449 $ 364,042
Cash and investments as of December 31, 2022 consist of the following:
Park
Meadows Lone Tree
BID BID
Primary Component Component
Government Unit Unit
Deposits with Financial Institutions $ 11,030,658 $ 6,822,093 $ 338,134
Certificates of Deposit - 1,087,718 25,908
Investments 42,653,265 529,638 -
Total Cash and Investments $ 53,683,923 $ 8,439,449 $ 364,042
Deposits with Financial Institutions
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government
deposit cash in eligible public depositories. Eligibility is determined by state regulators.
Amounts on deposit 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. The pool for all the uninsured public deposits as a group is to be
maintained by another institution or held in trust. The market value of the collateral must be at
least 102% of the aggregate uninsured deposits.
The State Commissioners for banks and financial services are required by statute to monitor the
naming of eligible depositories and reporting of the uninsured deposits and assets maintained in
the collateral pools.
46
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
As of December 31, 2022, the City's cash deposits had a bank balance of $8,606,070 and a
carrying balance of$11,030,658. None of the City's deposits are subject to custodial risk since
they are deposited in certified eligible public depositories under the PDPA.
As of December 31, 2022, the PMBID's cash deposits, including certificates of deposit, had a
bank balance of $8,416,257 and a carrying balance of $7,909,811. None of PMBID's deposits
are subject to custodial risk since they are deposited in certified eligible public depositories under
the PDPA.
As of December 31, 2022, the LTBID's cash deposits had a bank balance of $338,134 and a
carrying balance of $338,134. The LTBID's deposits up to $250,000 are covered by federal
depository insurance (FDIC), with the additional deposits covered by the PDPA.
Investments
The City has adopted a formal investment policy to establish parameters and guidelines for the
efficient management of the City's funds and for the purchase and sale of investments. The City
will consolidate the balances from all funds, except those held in trusts or special funds that have
a designated purpose, to maximize investment earnings. The City's primary objectives, in
priority order, are: a) Safety of Principal, b) Liquidity, and c) Return on Investments. Pursuant to
the City's investment policy, investments will have a duration of no longer than five years.
Additionally, the City follows state statutes regarding investments.
The City generally limits its concentration of investments to those noted with an asterisk (*)
below, which are believed to have minimal credit risk, minimal interest rate risk and no foreign
currency risk. Additionally, the City is not subject to concentration risk disclosure requirements
or subject to investment custodial credit risk for investments that are in the possession of another
party.
Colorado Revised Statutes limit investment maturities to five years or less unless formally
approved by the City Council. Such actions are generally associated with a debt service reserve
or sinking fund requirements.
Revenue bonds of local government securities, corporate and bank securities, and guaranteed
investment contracts not purchased with bond proceeds, are limited to maturities of three years
or less.
47
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
Colorado statutes specify investment instruments meeting defined rating and risk criteria in
which local governments may invest which include:
. Obligations of the United States, certain U.S. government agency securities
. General obligation and revenue bonds of U.S. local government entities
. Certain certificates of participation
. Certain securities lending agreements
. Bankers' acceptances of certain banks
. Commercial paper
. Written repurchase agreements and certain reverse repurchase agreements collateralized
by certain authorized securities
. Certain money market funds
. Guaranteed investment contracts
* Local government investment pools
The City implemented GASB Statement No. 72, Fair ilalue Measurement and Application, in
2016 to categorize its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are
significant unobservable inputs. Investments not measured at fair value and not categorized
include governmental money market funds (PFM Funds Governmental Select Series) and money
market funds (generally held by Bank Trust Departments in their role as paying agent or trustee).
The City has the following recurring fair value measurements through Colotrust that are valued
using the market approach with maturities based on a weighted average under 60 days approach.
City investments, as well as PMBID and LTBID, as of December 31, 2022 are as follows:
• City - Local Government Investment Pool of$53,683,923 are valued using the fair value
of the pool's share price multiplied by the number of shares held. (Leve12)
• PMBID —Local Government Investment Pool of$529,638 are valued using the net asset
value method (NAV) per share. The District's investment is not required to be
categorized within the fair value hierarchy.
• LTBID —Local Government Investment Pool of$25,908 are valued using the fair value
of the pool's share price multiplied by the number of shares held. (Leve12)
The City does not have recurring fair value measurements as of December 31, 2022, that are
valued using quoted prices in active markets for identical assets (Level 1) or significant
unobservable inputs (Leve13).
48
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 3 - CASH AND INVESTMENTS (CONTINUED)
The Lone Tree Arts Center Fund (LTACF), a Colorado nonprofit corporation, has developed a
policy for accepting gifts of securities and stock-related gifts as contributions. It is the
organization's policy to liquidate all securities within three business days of receipt. As of
December 31, 2022, the LTACF did not hold any securities.
COLOTRUST
The City invested in the Colorado Local Government Liquid Asset Trust (the Trust) an
investment vehicle established for local government entities in Colorado to pool surplus funds.
The State Securities Commissioner administers and enforces all State statutes governing the
Trust. The Trust operates similarly to a money market fund and each share is equal in value to
$1.00. The Trust offers shares in two portfolios, COLOTRUST PRIME and COLOTRUST
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. A designated
custodial bank serves as custodian for the Trust's portfolios pursuant to a custodian agreement.
The custodian acts as safekeeping agent for the Trust's 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 Trust. Colotrust is rated
AAAm by Standard& Poor's.
49
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 4 - FUND BALANCE
The specific purposes for each fund balance classification on the balance sheet are detailed in the
table below:
Special
Revenue
F�nd-Cultural Other
General &Community Governmental
Fund Services Funds Total
Fund Balances
Nonspendable
Prepaid Items $ 270,208 $ 116,668 $ - $ 386,876
270,208 116,668 - 386,876
Restricted for:
EmergencyReserve(TABOR) 1,656,153 - - 1,656,153
ConservarionTrust 572,137 - - 572,137
Brick Fence Replacement Reserve 986,200 - - 986,200
Advancing L'mcoln Avenue 659,636 - - 659,636
Acres Green Pedestrian Bridge 853,157 - - 853,157
Metropolitan Football Stadium Shareback 1,010,137 - - 1,010,137
Debt Service - - 5,345,840 5,345,840
5,737,420 - 5,345,840 11,083,260
Committed to:
L,one Tree Arts Center - 796,550 4,088 800,638
Assigned to:
Emergency Disaster Management-County 175,837 - - 175,837
Capital Replacement 13,816,850 - - 13,816,850
Park Fee in Lieu of Land 285,640 - - 285,640
14,278,327 - - 14,278,327
Unassigned 26,649,553 - - 26,649,553
TotalFund Balance $ 46,935,508 $ 913,218 $ 5,349,928 $ 53,198,654
50
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 4-FUND BALANCE (CONTINUED)
Nonspendable
The nonspendable fund balance for prepaid items represents payments to vendors that are
applicable to a future accounting period and are, therefore, nonspendable resources and
unavailable for appropriation.
Restricted
Emergency reserves have been provided for as required by Article X, Section 20 of the
Constitution of the State of Colorado (see Note 22).
Conservation Trust reserve represents funds received from the State of Colorado from lottery
proceeds that are restricted by the State Constitution to be spent for parks, recreation and open
space purposes.
The brick fence replacement reserve represents funds received by the City as part of a litigation
settlement. These funds are to be used exclusively for capital repairs related to the brick fences
throughout the City as a requirement of the settlement.
The Advancing Lincoln Avenue reserve represents funds received by the City from funding
partners on this project less incurred costs. These funds are to be used exclusively for the
Advancing Lincoln Avenue project.
The Metropolitan Football Stadium Shareback reserve represents funds received by the City
from the Metropolitan Football Stadium District as the result of the sale of the Bronco franchise.
These funds are to be used exclusively for youth activity programs.
Acres Green Pedestrian / Bicycle Bridge reserve represents funds received by the City from
funding partners on this project less incurred costs. These funds are to be used exclusively for
this proj ect.
The debt service restricted balance represents funds to be used for future payment of bond
principal, interest and costs related to the Park and Recreation Improvement Bonds and Arts and
Cultural Facilities Bonds.
Committed
Funds committed for the Lone Tree Art Center represent funds that have been committed by the
Lone Tree City Council to be used solely to fund the Lone Tree Art Center. This policy was
established by City Council in Resolution#11-25.
51
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 4-FUND BALANCE (CONTINUED)
Assigned
The emergency disaster management reserve has been provided for pursuant to an
intergovernmental agreement with Douglas County estimated at 0.02% of the City's assessed
value.
Capital replacement represents funds accumulated for future replacement of capital
improvements and/or for capital projects.
Park fee in lieu of land dedication represents funds received on development projects that are
pledged for future park and recreation projects pursuant to development site improvement
applications.
Unassigned
Included in the unassigned amount in the General Fund is the City's working reserve or
stabilization fund. This amount was established by City Council in CAP #11-01 to mitigate
current and future risks such as revenue shortfalls and unanticipated expenditures as well as to
ensure stable tax rates.
52
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 5 - TRANSFERS
The following schedule summarizes the City's transfers for the year ended December 31, 2022:
Transfer in
Special Revenue Fund-
Transfer in Cultural&
Transfers Out General Fund Community Services
Debt Service Fund-Arts/Cultural Facilities $ 39,221 $ -
General Fund - 1,463,876
$ 39,221 $ 1,463,876
The transfer of $1,463,876 from the General Fund represents the subsidy needed from the
General Fund to cover the operational costs of the Lone Tree Arts Center in excess of revenues
generated by the Lone Tree Arts Center. The transfer of$39,221 from the Debt Service fund to
the General Fund represent reimbursement for capital payments that were made out of the
General Fund for Arts and Cultural projects.
53
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 6—LEASES
Lessee
The City leases a port-a-potty at the Public Works Facility, filtered water stations, copiers and
traffic cameras under cancelable operating leases. The total lease payments in 2022 were
$82,468, including $64,211 in principal payments and $18,257 in interest payments.
Right to Use Leased Assets
Right to use leased asset activity for the year ended December 31, 2022, was as follows:
Balance at Balance at
December 31, December 31,
2021 Increases Decreases 2022
Primary Government
Right to Use L,eased Assets:
Pubfic Warks Facility Port-a-Potty $ - $ 7,078 $ - $ 7,078
Fikered Water StaYions - 11,035 - 11,035
Copiers - 47,097 - 47,097
Tra�c Cameras - 336,707 - 336,707
Total Right to Use Leased Assets - 401,916 - 401,916
Less Accuululated Amortization for:
Public Works FacilityPort-a-Potty - (1,320) - (1,320)
Filtered Water Stations - (2,037) - (2,037)
Copiers - (17,661) - (17,661)
Tra�c Cameras - (51,145) - (51,145)
Total Accumulated Amortization - (72,163) - (72,163)
Right to Use Leased Assets,Net ofAmortization $ - $ 329,753 $ - $ 329,753
Lease Liabilities
The following is a summary of changes in lease liabilities of the City for the year ended
December 31, 2022:
Balance at Balance at
December3l, December3l, Due Within
2021 Increases Decrcases 2022 Onc Year
Primary Government
Lease Liability:
PublicWorksFacifityPort-a-Potty - 7,078 (1,191) 5,887 1,363
Filtered Water Stations - 11,035 (1,788) 9,247 1,879
Copiers - 47,097 (16,931) 30,165 17,797
Traffic Cameras - 336,707 (44,300) 292,407 46,567
Total L,ease Liability - 401,916 (64,211) 337,706 67,607
54
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 6-LEASES (CONTINUED)
Future Lease Payments
The future lease payments for all leases discussed above are expected to be paid as follows:
Maturity Analysis Principal Interest Total
O1/O1/2023 - 12/31/2023 $ 67,607 $ 14,996 $ 82,603
01/O1/2024 - 12/31/2024 64,726 11,603 76,329
O1/O1/2025 - 12/31/2025 55,037 8,743 63,780
Ol/Ol/2026 - 12/31/2026 57,852 5,928 63,780
O1/O1/2027 - 12/31/2027 57,986 3,034 61,020
O1/O1/2028 - 12/31/2028 34,498 432 34,930
Total $ 337,706 $ 44,736 $ 382,442
Lease Liability $ 337,706
Lessor
The City leases a portion of its Municipal Office Building (LTMB) and the minimum anticipated
receipts for the next five years are as follows:
End Date 2023 2024 2025 2026 2026
Primary Government
LTMB Suite 175 07/31/2025 $ 36,564 $ 36,564 $ 21,329 $ - $ -
LTMB Suite 270 12/31/2024 13,330 13,330 - - -
49,894 49,894 21,329 - -
Total lease receipts in 2022 were $47,027, including $40,463 in principal and $6,564 in interest.
55
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 6—LEASES (CONTINUED)
Future Lease Receipts
The future lease receipts for allleases discussed above are eXpected to be as
follows:
Maturity Analysis Principal Interest Total
O1/O1/2023 - 12/31/2023 $ 45,422 $ 4,472 $ 49,894
O1/O1/2024 - 12/31/2024 47,746 2,148 49,894
Ol/O1/2025 - 12/31/2025 21,065 264 21,329
Total $ 114,233 $ 6,884 $ 121,117
Lease Receivable $ 114,233
NOTE 7—LOANS RECEIVABLE
Long-term loans receivable consists of the following at December 31, 2022:
Term Outstanding Balance
(Years) Rate (%) at December 31, 2022
RidgeGate Affordable Housing Project 40.5 0.25% $ 615,000
Accrued Interest 2,306
Loans Receivable,Net $ 617,306
The City was the recipient of a Community Development Block Grant (CDBG) in the amount of
$615,000 and extended the full amount as a long-term loan to support the RidgeGate affordable
housing project. The City Council recognizes the importance of having a diverse housing stock
that provides choices for every life state and supports housing for a variety of income levels. In
addition, the development of attainable housing in Lone Tree is closely tied to its successful and
sustainable economic development by providing employers with competitive advantages in terms
of housing opportunities for a local workforce. The loan is secured by a deed of trust, which is
subordinate to other debt on the associated project. However, collectability of the outstanding
balance remains strong and identified.
56
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 8 - CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022 follows:
B alance at B alance at
December 31, December 31,
2021 Increases Decreases 2022
Primary Government
Capital Assets,Not being Depreciated:
Land $ 39,797,733 $ - $ - $ 39,797,733
Construction in Progress - 15,083 - 15,083.00
Total Capital Assets,not Being Depreciated 39,797,733 15,083 - 39,812,816
Capital Assets,being Depreciated:
Buildings and Building Improvements 42,626,368 - - 42,626,368
Equipment 4,700,977 169,950 - 4,870,927
Vehicles 1,675,281 163,898 (56,559) 1,782,620
Infrastructure 166,095,622 3,787,065 - 169,882,688
Intangibles 1,500,000 - - 1,500,000
Total Capital Assets,being Depreciated 216,598,249 4,120,913 (56,559) 220,662,602
Less Accumulated Depreciation for:
Buildff►gs and Building Improvements (12,627,147) (1,153,211) - (13,780,357)
Equipment (4,170,650) (272,712) - (4,443,363)
Vehicles (1,200,047) (166,210) 56,559 (1,309,698)
Infrastructure (87,123,395) (6,115,07� - (93,238,470)
Intangibles (656,250) (37,500) - (693,750)
Total Accumulated Depreciation (105,777,489) (7,744,709) 56,559 (113,465,638)
Total Capital Assets,being Depreciated,Net 110,820,760 (3,623,796) - 107,196,964
Capital Assets,Net $ 150,618,493 $ (3,608,713) $ - $ 147,009,780
57
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 8 - CAPITAL ASSETS (CONTINUED)
Balance at Balance at
December 31, December 31,
2021 Increases Decreases 2022
Park Meadows BID Component Unit:
Capital Assets,Not being Depreciated:
Construction in Progress $ - $ 963,881 $ - $ 963,881
Total Capital Assets,not Being Depreciated - 963,881 - 963,881
Capital Assets,being Depreciated:
Infrastructure 21,710,103 - - 21,710,103
Total Capital Assets,being Depreciated 21,710,103 - - 21,710,103
Lease Assets,being Amortized:
Right-to-Use Lease-Property - 13,245,019 - 13,245,019
Total Lease Assets,being Amortized - 13,245,019 - 13,245,019
Less Accumulated Depreciation for:
Infrasmz�ture �9,600,6os� �l,osi,s41� - �lo,6s1,946�
TotalAccumulatedDepreciation (9,600,605) (1,081,341) - (10,681,946)
Less Accumulated Amortization for:
Right-to-Use Lease-Property - (213,052) - (213,052)
Total Accumulated Amortization - (213,052) - (213,052)
Capital Assets,Net $ 12,109,498 $ 12,914,507 $ - $ 25,024,005
As a result of implementation of GASB Statement No. 87 (GASB 87), Leases, $13,245,019 in
lease assets being amortized and$213,052 in lease asset accumulated amortization were added as
Right-to-Use Lease Building as presented above.
Depreciation expense for 2022 was charged to the following functions/programs:
Park
Meadows
BID
Governmental Component
Activities Unit
General Government $ 456,843 $ 1,294,393
Municipal Court 8,676 -
Community Development 33,364 -
Public Works 6,213,698 -
Police Department 353,734 -
Arts and Cultural 621,834 -
Total Depreciation Expense 7.688149 1.294393
58
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 9 -LONG-TERM OBLIGATIONS
The following is an analysis of the changes in the City's long-term obligations for the year ended
December 31, 2022:
Balance at Balance at Due Within
12/31/2021 Add'hions Reductions 12/31/2022 One Year
Governmental Activities
Sales and Use Tax Revenue
Refunding Bonds- Series 2017A $ 2,110,000 $ - $ 1,020,000 $ 1,090,000 $ 1,090,000
Unamortized Preuuiun on Series
2017ABonds 97,126 - 64,042 33,083 33,083
Sales and Use Tax Revenue
Refunding Bonds- Series 2017B 3,320,000 - 1,600,000 1,720,000 1,720,000
Unamortized Preiniwii on Series
2017B Bonds 105,261 - 70,210 35,050 35,050
TotalBonds 5,632,386 - 2,754,253 2,878,134 2,878,134
Compensated Absences 1,217,391 281,419 263,282 1,235,528 184,069
$ 6,849,777 $ 281,419 $ 3,017,535 $ 4,113,662 $ 3,062,203
Balance at Balance at Due With�
12/31/2021 Additions Reductions 12/31/2022 One Year
Park Meadow�BID Component Unit
Shared Sales Tax Revenue
Refimding L,oan Series 2017A $ 9,392,626 $ - $ 816,985 $ 8,575,641 $ 841,999
Leases Payable - 13,245,018 640,988 12,604,030 631,201
$ 9,392,626 $ 13,245,018 $ 1,457,973 $ 21,179,671 $ 1,473,200
As a result of implementation of GASB Statement No. 87 (GASB 87), Leases, $13,245,018 was
added to Lease Payable as presented above.
59
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 9 -LONG-TERM OBLIGATIONS (CONTINUED)
Authorized Debt
On May 6, 2008, a majority of the qualified electors of the City authorized the issuance of
indebtedness in an amount not to exceed $18,500,000 and $12,500,000, for sales and use tax
revenue bonds for funding capital improvements for cultural facilities and park and recreation,
respectively. The voters also authorized a temporary sales and use tax rate increase of .1875%
for arts and cultural facilities and .125% for park and recreation improvements effective July 1,
2008 through December 31, 2023 or until the full payment of such debt if occurring earlier. In
2017, the City refunded these bonds acquiring a lower interest rate, while maintaining the bond
terms, which resulted in a savings over the life of the bonds. On December 31, 2022, the City
had authorized but unissued bond indebtedness in the following amounts allocated for the
following purposes:
Amount
Authorized Amount Used Amount Used Amount Remaining
2008 Series 2008A Series 2009 Unused(Stale) Authorization
Arts and cultural fac�ities $ 18,500,000 $ - $ 16,880,000 $ (1,620,000) $ -
Park and recreation improvements 12,500,000 11,000,000 - (1,500,000) -
$ 31,000,000 $ 11,000,000 $ 16,880,000 $ (3,120,000) $ -
60
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 9 -LONG-TERM OBLIGATIONS (CONTINUED)
Pursuant to recommendation from Bond Counsel in 2017 the remaining authorized amounts
became stale on December 31, 2017 due to the length of time that has passed since the election
and the issuance of the bonds.
Additionally, the PMBID held an election on November 7, 2006 where eligible voters of the
PMBID authorized the issuance of $135,000,000 of indebtedness payable from ad valarem
property taxes or other legally available revenues of the PMBID for capital expenditures related
to street, park and recreation, utility lines, transportation, and television relay improvements. As
of December 31, 2022, the PMBID has $118,690,000 in authorized, but unissued indebtedness
for capital purposes.
The detail of the City's long-term obligations are as follows:
Series 2017A, $4,805,000 Sales and Use Tax Revenue Refunding Bonds, dated May 24, 2017
(2017A Bonds). On May 24, 2017, the City issued $4,805,000 in Sales and Use Tax Revenue
Refunding Bonds at interest rates ranging from 2.00% to 5.00% to refund a portion of the
outstanding Sales and Use Tax Revenue Bonds, Series 2008A, whose purpose was to finance the
construction of several park and recreation improvements including, the Cook Creek pool and
tennis court facility and playground at the Lone Tree Golf Club, as well as a portion of Prairie
Sky Park. Series 2008A was originally issued on November 19, 2008, at $11,000,000 in Sales
and Use Tax Revenue Bonds. 2008A Bonds were paid in full as of December 31, 2018. The
principal and interest on the 2008A Bonds were payable solely from and secured by an
irrevocable pledge of the 2008A pledged revenues which primarily consist of the revenues
derived from the City's recreation sales and use tax imposed at a rate equal to 0.125%. The
recreation sales tax went into effect on July 1, 2008 and will end on December 1, 2023.
The purpose of the 2017 refunding was to reduce the interest rate paid on the 2008A Bonds. The
total debt service savings for the 2008A bonds as a result of the refunding is approximately
$441,500, while the present value savings from cash flow is approximately $415,000. The terms
of the 2017A bonds remained the same with a payoff date of December 1, 2023.
Series 2017B, $6,200,000 Sales and Use Tax Revenue Refunding Bonds, dated May 24, 2017
(2017B Bonds). On May 24, 2017, the City issued $6,200,000 in Sales and Use Tax Revenue
Refunding Bonds at interest rates ranging from 3.00% to 4.00% to refund a portion of the
outstanding Sales and Use Tax Revenue Bonds, Series 2009 whose original purpose was to
finance the construction of the Lone Tree Arts Center. Series 2009 was ariginally issued on
August 11, 2009, at $16,880,000 in Sales and Use Tax Revenue Bonds. 2009 Bonds were paid in
full as of December 31, 2019. The principal and interest on the 2009 Bonds were payable solely
from and secured by an irrevocable pledge of the 2009 pledged revenues which primarily consist
of the revenues derived from the City's cultural sales and use tax imposed at a rate equal to
0.1875%. The cultural sales tax went into effect on July 1, 2008 and will end on December 1,
2023.
61
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 9 -LONG-TERM OBLIGATIONS (CONTINUED)
The purpose of the 2017 refunding was to reduce the interest rate paid on the 2009 Bonds. The
total debt service savings for the 2009 bonds as a result of the refunding is approximately
$278,500, while the present value savings from cash flow is approximately $259,000. The terms
of the bonds remained the same with a payoff date of December 1, 2023.
The detail of the Park Meadows Business Improvement District's long-term obligation are as
follows:
Series 2017A, $10,000,000 Shared Sales Tax Revenue Refunding Loan, dated December 1,
2017 (2017A Loan). On December 1, 2017, PMBID issued $10,000,000 in its Shared Sales Tax
Revenue Refunding Loan. The proceeds of the 2017A Loan were used to redeem a portion of the
2007 Bonds, fund a reserve account, and pay for the costs of issuing the 2017A Loan. The
2017A Loan principal is due monthly in various amounts beginning March 1, 2021 through
December 1, 2031, with interest at 3.02%, payable monthly beginning January 1, 2018.
The 2017A Loan may be prepaid on or after December 1, 2022 at the option of PMBID, with no
prepayment penalty or fee. The principal and interest on the 2017A Loan is payable solely from
and secured by an irrevocable pledge of the pledged revenues, which primarily consist of the
revenues derived from PMBID's shared sales tax with the City imposed at a rate equal to
1.8125%. As detailed in the Loan Agreement, the District is subject to various covenants, the
violation of which may lead to an event of default. The lender may take action as outlined in the
Loan Agreement, though payment acceleration is not a remedy for any events of default.
The District is subject to various covenants as agreed to in the Loan Agreement for the 2017A
Loans. The City is required to pledge 50% of the taxes collected in the PMBID area pursuant to
the annexation agreement (see Note 13); however, the City is not ultimately responsible for the
payment of the loans.
62
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 9 -LONG-TERM OBLIGATIONS (CONTINUED)
Annual debt service requirements to maturity are as follows:
Governmental Activities
Year Ended Sales and Use Tax
December 31, Revenue Bonds
Principal Interest Total
2023 $ 2,810,000 $ 118,300 $ 2,928,300
2.810.000 $ 118,300 2.928.300
Component Unit
Principal Interest Total
2023 $ 841,999 $ 247,395 $ 1,089,394
2024 867,782 221,612 1,089,394
2025 894,356 195,038 1,089,394
2026 921,742 167,652 1,089,394
2027 949,966 139,428 1,089,394
2028-2031 4,099,796 257,766 4,357,562
8,575,641 1,228,891 9,804,532
63
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 10 -NET POSITION
The City has net position consisting of three components - net investment in capital assets,
restricted and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation and
reduced by the outstanding balances of bonds that are attributable to the acquisition,
construction, or improvements of those assets. As of December 31, 2022, the City had net
investment in capital assets of$144,254,915 calculated as follows:
Governmental
Primary Government Activities
Net Investment in Capital Assets:
Capital Assets, Net $ 147,009,780
Deferred Outflow on Refunded Bonds 123,269
Current Portion of Long-term Obligations (2,810,000)
Bond Refunding Premium (Net of Accumulated Amortization) _�68,134�
Net Investment in Capital Assets 144.254.915
The restricted component of net position consists of assets that are restricted for use either
externally imposed by creditors, grantors, contributors, or laws and regulations of other
governments or imposed by law through constitutional provisions or enabling legislation. The
City had restricted net position of$11,083,260 as of December 31, 2022 as follows:
Governmental
Primary Government Activities
Restricted Net Position:
Emergency Reserve (see Note 22) $ 1,656,153
Conservation Trust 572,137
Brick Fence Replacement 986,200
Advancing Lincoln Avenue 659,636
Metropolitan Football Stadium Shareback 1,010,137
Acres Green Pedestrian/Bicycle Bridge 853,157
Debt Service (see Note 9) 5,345,840
11.083.260
64
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 10—NET POSITION (CONTINUED)
The unrestricted component of net position as of December 31, 2022 totaled $39,602,739.
The detail of the Park Meadows Business Improvement District's (PMBID) net position is as
follows:
PMBID's net position consists of three components —net investment in capital assets, restricted,
and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation and
reduced by outstanding balances of bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets. As of December 31,
2022, PMBID had net investment in capital assets calculated as follows:
Park Meadows BID
Governmental
Activities
Net Investment in Capital Assets:
Capital Assets,Net $ 25,024,005
Current Portion of Long-term Obligations (1,473,200)
Noncurrent Portion of Long-term Obligations (19,706,471�
Net Investment in Capital Assets 3.844334
The restricted component of net position includes assets that are restricted for use either
externally imposed by creditors, grantors, contributors, or laws and regulations of other
governments or imposed by law through constitutional provisions or enabling legislation. The
District had restricted net position of$1,276,378 as of December 31, 2022 as follows:
Park Meadows BID
Governmental
Activities
Restricted Net Position:
Emergency Reserve $ 246,800
Debt Service (See Note 9) 1,029,578
1,276378
PMBID's unrestricted net position as of December 31, 2022 totaled $8,805,410.
65
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 10—NET POSITION (CONTINUED)
The Lone Tree Business Improvement District (LTBID) has net position consisting of two
components—restricted and unrestricted.
Restricted net position includes assets that are restricted for use either externally imposed by
auditors, grantors, contributors or laws and regulations of other governments or imposed by law
through constitutional provisions or enabling legislation. The District had a restricted net
position as of December 31, 2022, as follows:
Lone Tree BID Governmental
Activities
Restricted Net Position:
Emergency Reserve 7,610
LTBID's unrestricted net position as of December 31, 2022, totaled $336,845.
NOTE 11 —TAX ABATEMENTS
In accordance with GASB Statement No. 77, the City has disclosed all agreements entered into
with other entities that involve sales taX abatements. Due to the limited number of abatement
instances that the City is a part of, no quantitative threshold was set and all agreements were
included. The terms of the agreements and payment amounts as of December 31, 2022 are
detailed as follows:
Retailer A is to be paid a total of $7,200,000. $2,200,000 will be due from the City upon the
issuance of a certificate of occupancy. Additionally, once Retailer A opened, the City will remit
an amount equal to 65% of the revenues collected by the City from taxable transactions
occurring on the property during the first three years of the revenue sharing period and 50%
during the remainder of the revenue sharing period. The revenue sharing period will be fifteen
years from the effective date of May 17, 2012 or until the revenue cap of$5,000,000 is achieved.
Furthermore, the City also agrees to rebate 100% of any and all applicable use taxes collected on
building and construction materials used for construction of the site improvements and public
improvements at the time the initial certificate of occupancy is issued by the City. Such use tax
rebates will not be credited against the revenue cap but shall be in addition thereto. The
agreement with Retailer A was put in place to help bring in a new tourist retail location to drive
economic development and future tax revenues in the City. As of December 31, 2022, Retailer A
has been paid $6,430,571 with a remaining amount committed of$769,429. Ending in 2020, this
Retailer was identified as Retailer B.
66
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 11 —TAX ABATEMENTS (CONTINUED)
Service Provider A shall be reimbursed 100% of all sales and use tax payments imposed or
collected by the City on building and construction materials purchased for use in construction or
imposed or collected on machinery, equipment, furniture, fixtures, supplies and all other tangible
personal property or taxable services purchased for use on the property for 10 years effective
from February 7, 2012 to February 7, 2022. As of December 31, 2022, no payments have been
made to Service Provider A.
Pursuant to the First Amendment to the Annexation and Development Agreement, during the
period commencing on January 1, 2014 and ending on December 31, 2032 the City will share
with Rampart Range Metropolitan District No1 (RRMD No.l) all sales tax, lodging tax,
admissions tax or use tax collected on taxable transactions occurring within the west side
property, without deduction whatsoever other than the deduction of all amounts that the City is
required to rebate to Retailer A (discussed above) pursuant to the existing Retailer A Incentive
Agreement and MOU. The sales tax shareback was originally created for the purpose of
providing certain public improvements and services to and for the benefit of the property located
within the boundaries of the special districts contemplated in the service plan that governs
RRMD No.l and that is located within the boundaries of the City as a result of the annexation
contemplated and authorized by the Annexation Agreement.
The shareback per this agreement is as follows:
• 45% to RRMD No1 from January 1, 2014 to December 31, 2018
• 25% to RRMD No1 from January 1, 2019 to December 31, 2023
• 15% to RRMD No1 from January 1, 2024 to December 31, 2028
• 10% to RRMD No1 from January 1, 2029 to December 31, 2032
The City shall make payment to RRMD No.l in each calendar quarter within sixty (60) days
after the end of each calendar quarter. In 2022, the amount paid to RRMD No.l pursuant to the
First Amendment to the Annexation and Development Shareback Agreement totaled $1,416,637.
67
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 11 —TAX ABATEMENTS (CONTINUED)
Pursuant to the agreement between the City and the owner of the Park Meadows Town Center,
commencing on January 1, 2007 and continuing for twenty-five years from the commencement
date, the City will distribute 50% of sales tax collections received from the annexed property to
the created Park Meadows Business Improvement District (PMBID). Sales tax is considered any
sales tax, lodging tax, admissions tax or use tax imposed by the City or on its behalf which is
imposed upon taxable transactions occurring with respect to, or the taxable exercise of any
privilege on or with respect to the Park Meadows Town Center, specifically excluding ad
valorem property taxes. The term of the agreement will automatically be extended for an
additional five-year period if the sales tax collected in 2027 is more than the sales tax collections
in the first full sales tax collection year (referred to as the base year) which begins after the first
to occur: i) annexation by the City of all of the anchor retail stores and substantial completion of
the "Lifestyle Extension" or ii) December 31, 2009. This sales tax shareback was a negotiated
component of the annexation agreement which has contributed to the economic growth of the
City and has increased tax revenues.
The City shall make payment to the PMBID in a lump sum due not more than sixty (60) days
following the close of each month, provided that such payments may be made at greater
intervals, not to exceed one year. In 2022, the amount paid to PMBID totaled$7,889,623.
NOTE 12 -INTERGOVERNMENTAL AGREEMENTS
The City continues to leverage partnerships for cost effective ways to provide City services as
well as continue to invest in capital infrastructure throughout the City. Substantial
intergovernmental agreements are highlighted below.
Dispatch Services
The City has entered into an intergovernmental agreement with the Town of Parker to provide
dispatch services within the City's boundaries commencing January 1, 2006. In 2018, the City
and Town of Parker entered into the second replacement intergovernmental agreement for
services provided. The initial term of the agreement is from January 1, 2019 through December
31, 2019. Thereafter, the agreement shall automatically renew for five subsequent one-year
terms, unless terminated. The agreement outlines that the Parker Police Department will provide
twenty-four hour, seven days per week, public safety dispatch services to the Lone Tree Police
Department at the Dispatch Center. All Dispatch Center personnel are employees of the Town of
Parker and are subject to their policies and operating procedures. In 2020, the City and Town of
Parker entered into a third replacement intergovernmental agreement for services provided,
which changes the cost allocation method from the previous agreement starting on January 1,
2021. The cost allocation for 2022 and future years shall equal Lone Tree's proportionate share
of the prior year's audited actual costs for Dispatch services.
68
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 12 - INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
Additionally, a monthly administrative fee of 10% of the allocated costs will be included, not to
exceed$75,000 in any given year.
Evidence Storage and Crime Scene Investigation
The City has entered into an intergovernmental agreement with the Town of Parker to provide
services related to crime scene investigation and evidence storage beginning on January 1, 2013
through December 31, 2013 automatically renewing for five subsequent one-year terms unless
terminated by either party. As noted above, in 2018, the City and Town of Parker entered into the
second replacement intergovernmental agreement for services provided. The agreement outlines
that the Parker Police Department will provide evidence storage and twenty-four hour, seven
days per week, crime scene response services on an on-call basis to the Lone Tree Police
Department. Specifically, those services include crime scene processing which entails
responding to crime scenes in the City to process evidence, respond to impound lots to process
vehicles held for evidence and lab processing of evidence to discover and preserve fingerprints
and tool impressions. Evidence storage includes tracking and managing all physical evidence for
the Lone Tree Police Department through bar-coded evidence analysis statistics and tracking,
picking up and transporting evidence from Lone Tree Police Department to Parker Police
Department as-needed, store, track, inventory and audit evidence stored for Lone Tree Police
Department and transporting evidence for submission to area labs for analysis on at least a
monthly basis. The costs were allocated initially 50/50 for evidence storage costs in 2019 and
will be adjusted annually. For 2022, the 50/50 allocation remained the same. Additionally, a
monthly administrative fee of 10% of the allocated costs will be included, not to exceed $20,000
in any given year. Crime scene services will be invoiced on an hourly basis when requested.
Total estimated costs per these agreements in 2023 is approXimately $941,128.
Lone Tree Link Shuttle Service
During 2014, the City entered into multiple agreements as part of a public-private partnership
related to the Lone Tree Shuttle Bus Project or the Lone Tree Link. This project was initiated
because Park Meadows Drive is a major travel corridor in the City, connecting the Lincoln Light
Rail Station with major institutions and businesses that provide work for thousands of
employees. This service gives residents, visitors, shoppers and employees the ability to access
these institutions and businesses by means of a shuttle bus service and provides better
transportation to jobs and amenities throughout the corridor and reduces the dependency on the
single occupant automobile, facilitates the movement of traffic and minimizes traffic congestion
in the shuttle area. The private businesses consisting of Sky Ridge Medical Center, Charles
Schwab, Lone Tree Restaurant Investment, LLC, GC Net Lease Investors, LLC and BGP
Parkridge, LLC, entered into license agreements to allow the Link access to their properties. In
addition to the circular service provided on Park Meadows Drive, in 2017 and 2018, the service
69
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 12—INTERGOVERNMENTAL AGREEMENTS (CONTINUED)
was expanded with one shuttle being an on-demand service through a partnership with Uber. In
2019, the on-demand service was powered through Via Mobility and became accessible through
its own app. The on-demand service allows people to use the shuttle between any destinations
within the City limits.
The circular service was discontinued in May of 2019 due to the opening of the Southeast Light
Rail Extension. However, the on-demand service has continued, providing more transportation
options and reducing congestion, which are a top priorities for City residents and businesses. The
City continues to have an intergovernmental agreement with the Southeast Public Improvement
Metropolitan District (SPIMD), which included matched funding support of$89,445 for 2022.
COVID-19 Relief Funding
In response to the impact of the COVID-19 outbreak, CARES Act provided assistance for State,
Local, and Tribal Governments. The CARES Act established a $150 billion Coronavirus Relief
Fund. In 2020, the City entered into an intergovernmental agreement with Douglas County for
the purpose of providing the structure for reimbursement of the City's allocation of the CARES
Act Reimbursement Funds. The City requested and received its full distribution of $1,231,675
for COVID-19 related expenditures allowable under the CARES Act.
In 2021, the American Rescue Plan Act (ARPA) established a $1.9 trillion Coronavirus State &
Local Fiscal Recovery Fund (SLFRF). The City applied for this grant through the State of
Colorado, Department of Local Affairs, Division of Local Government. The allocation was
determined by the U.S. Treasury based on population, with the allocation being distributed in
two separate tranches. The City received $1,644,078 in 2021 and received the second tranche in
2022 for the same amount.
NOTE 13 - COMMITMENTS
RidgeGate
During 2000, City voters approved the annexation of approximately 3,500 acres identified as
RidgeGate. Subsequent to the original 2001 Annexation Agreement, two amendments have been
approved, one for the West Side property and one for the East Side property, replacing the
original agreement in totality as described below.
First Amendment to the Annexation and Development Agreement(West Side Property)
On December 16, 2014, the City Council approved the First Amendment to the AnneXation and
Development Agreement (Amendment) between the City and RidgeGate Investments, Inc.
70
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 13 —COMMITMENTS (CONTINUED)
(RidgeGate), which is effective January 1, 2015. Simultaneously with the execution of this
Amendment, RidgeGate, the City and Rampart Range Metropolitan District No. 1 (RRMD No.l)
entered into an agreement (the West Side Agreement) regarding dedication, acceptance, and
maintenance of public improvements on the portion of the property located on the west side of I-
25, and the sharing of sales tax revenues generated from transactions occurring within the west
side property. This amendment replaces the 2001 Annexation Agreement and 2001 Sales Tax
Sharing Agreement (the 2001 Agreements) for the west side of the property only. The 2001
Agreements were still in place for the property east of I-25 until the 2017 amendment as
described below. The two significant changes in the Amendment include the acceptance of
streets and sales tax sharing.
Concurrent with the execution of the Amendment, RRMD No.l dedicated to the City for
perpetual ownership, repair, replacement, operation and maintenance, all streets, sidewalks,
street and pedestrian lighting, safety protection and all appurtenant facilities as detailed in
Exhibit A of the Amendment. In 2015, the amount added to the City's financials for these assets
totaled $15,357,820. The City will maintain these assets to the same standard as elsewhere in the
City. Additionally, the City agreed that it would also accept all streets, sidewalks, street and
pedestrian lighting, and all appurtenant facilities constructed or installed in the future on the west
side property in accordance with the subdivision improvement standards and procedures adopted
by the City at such time of dedication. RRMD No.l remains responsible for maintenance,
operations, repair and replacement of all other public improvements constructed, retained and
owned by RRMD No.l which may include but are not limited to certain park and recreation,
drainage, and parking facilities. In order to offset costs incurred by the City in connection with
the City's maintenance and operation of the improvements accepted by the City during 2015
through 2019, RRMD No.l made five annual payments of$250,000 each on or before July 1 of
each such five years. Additionally, Rampart Range Metropolitan District Nos. 2 and 7 also
agreed commencing in the tax collection year 2024, to impose an additional operational mill levy
in the amount of one (1) mill that will be paid to the City and used by the City for maintenance
and repair of the existing and future streets and sidewalk improvements.
Pursuant to the Amendment, during the period commencing on January 1, 2014 and ending on
December 31, 2032, all sales tax, lodging tax, admissions tax or use tax collected by the City on
taxable transactions occurring within the west side property, without deduction whatsoever other
than the deduction of all amounts that the City is required to rebate pursuant to an existing
retailer Incentive Agreement and MOU, shall be shared between the City and RRMD No.l.
Please see Note 11 for further details on the payment schedule.
71
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 13 —COMMITMENTS (CONTINUED)
Amended and Restated Annexation and Development Agreement(East Side Property)
On November 21, 2017, the City Council approved the Amended and Restated Annexation and
Development Agreement with Respect to the East Side Property (East Side Agreement) between
the City and RidgeGate Investments, Inc. (RidgeGate). The East Side Agreement was approved
with certain conditions precedent that have all been met as of March 31, 2018. The East Side
Agreement outlines various terms including land dedication, vesting rights, attainable housing
requirements, and the possible inclusion into the South Suburban Parks and Recreation District
occurring within the east side property and is effective until December 31, 2055. This East Side
Agreement amends and restates the 2001 Annexation Agreement, with respect to the east side
property only. Additionally, the East Side Agreement terminates the 2001 Sales Tax Sharing
Agreement and other than the revenue pledged in the Pledge Agreement described below, there
shall be no other revenue sharing between the City and RidgeGate for the east side property.
Due to the East Side Agreement, the 2001 Annexation Agreement is no longer in place for any
part of RidgeGate.
On November 7, 2017, the City Council approved the Mill Levy Pledge Agreement (Pledge
Agreement) between the City and Rampart Range Metropolitan District No. 4 (RRMD No. 4).
The Pledge Agreement was approved with certain conditions precedent that have all been met as
of April 19, 2018. Pursuant to the Pledge Agreement, the City will receive an ad valorem mill
levy (a mill being equal to 1/10 of 1 cent) imposed upon all taxable property of RRMD No. 4 in
the amount of eight mills, less the amount of the then-applicable City property tax levy, if any
(Contractual Debt Levy). The Contractual Debt Levy shall never be less than two mills. The
Contractual Debt Levy term commences in tax certification year 2023 (for collection and
remittance in 2024) through and including tax certification year 2054 (for collection and
remittance in 2055). For the portion of the Contractual Debt Levy term commencing in tax
certification year 2055 (for collection and remittance in 2056) and continuing thereafter until this
Pledge Agreement is terminated, an ad valorem mill levy imposed upon all taxable property of
RRMD No. 4 each year in the amount of two mills.
If the ratio of valuation for assessment of residential real property is changed after the effective
date of this Pledge Agreement, pursuant to Article X, Section 3 of the Colorado Constitution (the
"Gallagher Amendment"), the mills levied by RRMD No. 4 pursuant to the Contractual Debt
Levy shall be increased or decreased to reflect such change so that, to the extent possible, the
actual tax revenues generated by the Contractual Debt Levy, as adjusted, are neither diminished
nor enhanced as a result of such changes in ratio of valuation for assessment of residential
property; provided that in no event shall the Contractual Debt Levy exceed fifty mills (without
adjustment) or be less than two mills (without adjustment). Increases or decreases to the
Contractual Debt Levy shall be determined by RRMD No. 4 in good faith and shall be binding
and final. For purposes of the foregoing, a change in the ratio of actual valuation to assessed
valuation of residential property shall be deemed to be a change in the method of calculation of
assessed valuation.
72
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 13 —COMMITMENTS (CONTINUED)
In exchange for the City's agreement to provide public services in accordance with the Pledge
Agreement, RRMD No. 4 shall levy the Contractual Mill Levy. For avoidance of doubt, the
Contractual Debt Levy shall never be less than two mills, subject to adjustment. RRMD No. 4
covenants to lawfully budget and certify annually the Contractual Debt Levy and to appropriate
the revenue therefrom and to pay the Contractual Debt Levy obligation to the City no less
frequently than quarterly upon receipt of the Contractual Debt Levy revenue, beginning with the
calendar quarter ending March 31, 2024.
Park Meadows Mall
During 2006, City Council approved the annexation of the retail shopping property identified as
Park Meadows Town Center effective January 1, 2007. The City entered into an agreement with
the owner and organized a business improvement district named the Park Meadows Business
Improvement District (PMBID). Pursuant to the agreement, commencing January 1, 2007 and
continuing for twenty-five years from the commencement date, the City will distribute 50% of
sales tax collections received from the annexed property to the PMBID. The term of the
agreement will automatically be extended for an additional five-year period if the sales tax
collected in 2027 is more than the sales tax collections in the first full sales tax collection year
(referred to as the base year) which begins after the first to occur: i) annexation by the City of all
of the anchor retail stores and substantial completion of the "Lifestyle Extension" or ii)
December 31, 2009.
The owner of the retail shopping property has the option to annually notify the City and the
PMBID in writing of the amount due by the owners for property taxes certified by the Park
Meadows Metropolitan District against the annexed portion of the property within the City for
the previous year. Within 60 days of such notice the City shall pay from the sales tax revenue
50% of the stated amount (the Reimbursement). This payment is in addition to the Sales Tax
Disbursement.
Construction Commitments
As of December 31, 2022, the City had unexpended construction related contract commitments
of$1,101,912.
73
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
Plan Description
The City contributes to the Statewide Defined Benefit Plan, a cost-sharing multiple-employer
defined benefit pension plan administered by the Colorado Fire and Police Pension Association
(FPPA). The Statewide Defined Benefit Plan provides retirement benefits for members and
beneficiaries. All full-time,paid police officers of the City are members of the Statewide Defined
Benefit Plan. The cost to administer the plan is financed through the contributions and
investment earnings of the plan. Colorado Statutes assign the authority to establish benefit
provisions to the state legislature.
FPPA issues a publicly available annual financial report that includes financial statements and
required supplementary information for the Statewide Defined Benefit Plan, the Statewide
Money Purchase Plan and the Statewide Death and Disability Plan. That report may be obtained
by calling FPPA at 303-770-3772 in the Denver Metro area and 1-800-332-FPPA (3772) from
outside the metro area or can be obtained at www.f�aco•or�.
Pension Benefits
A member is eligible for a normal retirement pension once the member has completed twenty-
five years of credited service and has attained the age of 55. Effective January 1, 2021, a member
may also qualify for a normal retirement pension if the member's combined years of service and
age equals at least 80, with a minimum age of 50 (Rule of 80).
The annual normal retirement benefit is 2 percent of the average of the member's highest three
years' pensionable earnings for each year of credited service up to ten years, plus 2.5 percent for
each year of service thereafter. The benefit earned prior to January 1, 2007 for members of
affiliated Social Security employers will be reduced by the amount of Social Security income
payable to the member annually. Effective January 1, 2007, members currently covered under
Social Security will receive half the benefit when compared to the Statewide Defined Benefit
Plan. Benefits paid to retired members are evaluated and may be re-determined every October 1.
The amount of any increase is based on the Board's discretion and can range from 0 to the higher
of 3 percent or the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W).
A member is eligible for early retirement after completion of 30 years of service or attainment of
age 50 with at least five years of credited service. The early retirement benefit equals the normal
retirement benefit reduced on an actuarially equivalent basis. Upon termination, an employee
may elect to have member contributions, along with 5 percent as interest, returned as a lump sum
distribution. Alternatively, a member with at least five years of accredited service may leave
contributions with the Plan and remain eligible for a retirement pension at age 55 equal to 2
percent of the member's average highest three years' pensionable earnings for each year of
credited service up to ten years, plus 2.5 percent for each year of service thereafter.
74
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
Contributions
The Statewide Defined Benefit Plan (Plan) sets contribution rates at a level that enables all
benefits to be fully funded at the retirement date of all members. Contribution rates for this Plan
are set by state statute. Employer contribution rates can only be amended by state statute.
Member contribution rates can be amended by state statute or by election of the membership.
Effective January 1, 2021, contribution rates for employers and members may be increased
equally by the FPPA Board of Directors upon approval through an election by both the
employers and members.
In 2014, the members elected to increase the member contribution rate beginning in 2015.
Member contribution rates increased 0.50 percent annually through 2022 to a total of 12 percent
of pensionable earnings. Employer contributions increase 0.50 percent annually beginning in
2021 through 2030 to a total of 13.0 percent of pensionable earnings. In 2022, members of the
Plan and their employers are contributing at the rate of 12.0 percent and 9.0 percent,
respectively, of pensionable earnings for a total contribution rate of 21.0 percent.
Contributions to the Plan from the City were $420,559 for the year ended December 31, 2022.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At December 31, 2022, the City reported an asset of$2,939,162 for its proportionate share of the
net pension asset. The net pension asset was measured as of December 31, 2021, and the total
pension asset used to calculate the net pension asset was determined by an actuarial valuation as
of that date. The City's proportion of the net pension asset was based on a projection of the
City's long-term share of contributions to the pension plan relative to the projected contributions
of all participating employers, actuarially determined.
At December 31, 2022, the City's proportion was 0.542 percent, which was a decrease of 0.026
percent from its proportion measured as of December 31, 2021.
For the year ended December 31, 2022, the City recognized pension expense of 706,403.
Pension expense for 2022 was charged to the following functions/programs:
Governmental
Activities
Police Department $ 706,403
Total Pension Expense $ 706,403
75
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Beginning Deferral Amounts as of Prior � 1,814,613 $ 904,418
measurement Date, December 31, 2020
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------
Differences Between Actual and Expected
Experience - 268,705
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------
Changes in Assumptions - 105,768
--------------------------------------------------------------------------------� --------------------------------------------------------------------------------------------------................................................................--------------------------------------------------------------------------
Net Difference Between Actual and Projected _ 699,377
Earnings on Pension Plan Investments
..................................................................................................................................................................................................................................................................................................................................
Changes in Proportion and Differences Between
City Contributions and Proportionate Share of (373,685) (28,392)
Contributions
--------------------- --------------------------------------------------------------------------
City Contributions Subsequent to the Measurement 420,559 -
Date
Total $ 1,861,486 1,949,875
$420,559 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension asset in the year ended December 31, 2022. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year ended December 31, Amounts Reported as Deferred Outflows and Deferred
Inflows of Resources Reco nized in Pension Ex ense
2022 $ (220,041)
-------------------------------------------------------------------------------------------------------------------------
2023 (423,509)
-------------------------------------------------------------------------------------------------------------------------
2024 (217,914)
-------------------------------------------------------------------------------------------------------------------------
2025 (32,983)
2026 211,056
---------------------------------- ---------------------------------------------------------------------------------..........................................................................................................................................................------.......................................
Thereafter 174,443
Total $ (508,948)
76
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
Actuarial Assumptions
The actuarial valuations for the Plan were used to determine the total pension liability and
actuarially determined contributions for the fiscal year ending December 31, 2021. The
valuations used the following actuarial assumption and other inputs:
__Actuarial_Method Entry Age Normal
-------------------------------------------------------------------------------------- -
Amortization Method Level % of Payroll, Open
------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------................---.................................................................................................................
Amortization Period 30 Years
-------------------------------------------------------------------------------------------------------------------------------------- -
Long-term Investment Rate of Return 7.0 percent, Compounded Annually Net of All
--------- --------- --------- --------- --------- --------- -----
Investment Expenses, and Including Inflation
_Pro�ected_Salary_Increases .4.25 — 11.25 Percent
..............................................................................................................................................................................
_Cost_of_Livin�_Ad�ustment .O:O.Percent
.....................................................................................................................................................................
Inflation 2.5 Percent
For determining the total pension liability and actuarially determined contributions, the post-
retirement mortality tables for non-disabled retirees uses the 2006 central rates from the RP-2014
Annuitant Mortality Tables projected to 2018 using the MP-2017 projection scales, and the
projected prospectively using the ultimate rates of the scale for all years. The pre-retirement off-
duty mortality tables are adjusted to 50% of the RP-2014 mortality tables for active employees.
The on-duty mortality rate is 0.00015.
At least every five years the FPPA's Board of Directors, in accordance with best practices,
reviews its economic and demographic actuarial assumptions. At its July 2018 meeting, the
Board of Directors reviewed and approved recommended changes to the actuarial assumptions.
The recommendations were made by the FPPA's actuaries, Gabriel, Roeder, Smith & Co., based
upon their analysis of past experience and expectations of the future. The assumption changes
were effective for actuarial valuation beginning January 1, 2019. The actuarial assumptions
impact actuarial factors for benefit purposes such as purchases of service credit and other
benefits where actuarial factors are used.
77
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
Asset Class Tar et Allocation Lon Term Ex ected Rate of Return
Global Equity 39% 8.23%
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.........................................................................................................
Equity Long/Short 8% 6.87%
---------------------------------------------------------------------------------------------------------
Private Markets 26% 10.63%
-------------------------------------------------------------------------------------------------------
Fixed Income - Rates 10% 4.01%
----------------------------------------------------------------------------------------------------------
Fixed Income - Credit 5% 5.25%
...................................................................................................................................................................................................................................................................................................................................
Absolute Return 10% 5.60%
...................................................................................................................................................................................................................................................................................................................................
Cash 2% 2.32%
Total 100%
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighing the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation (assumed at 2.5%). Best estimates of arithmetic real rates of return for
each major asset class included in the Plans target asset allocation as of December 31, 2021, are
summarized in the above table.
Discount Rate
The discount rate used to measure the total pension liability was 7.00 percent. The projection of
cash flows used to determine the discount rate assumed that contributions from participating
employers will be made based on the actuarially determined rates based on the Fire & Police
Pension Association Board of Director's funding policy, which establishes the contractually
required rates under Colorado statutes. Based on those assumptions, the Plan fiduciary net
position was projected to be available to make all the projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
Projected benefit payments are required to be discounted to their actuarial present values using a
Single Discount Rate that reflects (1) a long-term expected rate of return on pension plan
investments (to the extent that the plan's fiduciary net position is projected to be sufficient to pay
benefits) and(2) tax-exempt municipal bond rate based on an index of 20-year general obligation
bonds with an average AA credit rating as of the measurement date (to the extent that the plan's
projected fiduciary net position is not sufficient to pay benefits).
78
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
For the purpose of this valuation, the expected rate of return on pension plan investments is 7.00
percent; the municipal bond rate is 1.84 percent (based on the weekly rate closest to but not later
than the measurement date of the "state & local bonds" rate from Federal Reserve statistical
release (H.15)); and the resulting Single Discount Rate is 7.00 percent.
Sensitivity of the Department's proportionate share of the net pension liability / (asset) to
changes in the discount rate
The following presents the City's proportionate share of the net pension asset calculated using
the discount rate of 7.00 percent, as well as what the City's proportionate share of the net
pension liability/ (asset) would be if it were calculated using a discount rate that is 1-percentage-
point lower(6.00 percent) or 1-percentage-point higher (8.00 percent) than the current rate:
1.00% Decrease Current Discount 1.00% Increase
(6.00%) Rate (7.00%) (8.00%)
City's Proportionate Share of the $ (405,328) $ (2,939,162) $ (5,038,298)
Net Pension Liabilit /(Asset)
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in the FPPA's
comprehensive annual report which can be obtained at http://www.f�aco.org/annual-
reports.html.
Defined Contribution Pension Plans
Voluntary Investment Program
Plan Description
Employees of the City that are also members of the Statewide Defined Benefit Plan may
voluntarily contribute to the IRC Deferred Compensation Plan, created under Internal Revenue
Code Section 457 defined contribution plan administered by FPPA. This Deferred Compensation
Plan collects amounts deferred by participants of affiliated employers. The assets are held in
trust for the exclusive benefit of participants. The plan allows the members to defer a portion of
their salary until future years.
79
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
Other Post-Employment Benefits
Statewide Death and Disability Plan
Plan Description
The Statewide Death and Disability Plan (Plan) is a cost-sharing multiple-employer defined
benefit death and disability plan covering full-time employees of substantially all fire and police
departments in Colorado. As of August 1, 2003, the Plan may include part-time police and fire
employees; however, the City does not currently have any part-time police employees.
Contributions to the Plan are used solely for the payment of death and disability benefits. The
Plan assets are included in the Fire&Police Members' Benefit Investment Fund.
Plan benefits provide 24-hour coverage, both on and off duty and are available for members not
eligible for normal retirement under a defined benefit plan, or members who have not met 25
years of accumulated service and age 55 under a money purchase plan.
In the case of an on-duty death, benefits may be payable to the surviving spouse and/or
dependent children of active members who were eligible to retire but were still working. On-duty
death and disability benefits are free from state and federal taxes in the event that a member's
disability is determined to be the result of an on-duty injury or an occupational disease.
This plan is reported by FPPA as an Other Post-Employment Benefit (OPEB) based on the
criteria established by the Governmental Accounting Standards Board (GASB). Death and
disability coverage is provided for members hired prior to January 1, 1997 through the Statewide
Death and Disability Plan, which is also administered by FPPA.
80
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 14 - STATE FIRE AND POLICE PENSION PLAN (FPPA Defined Benefit Plan)
(CONTINUED)
Funding Policy
Prior to 1997, the Plan was primarily funded by the State of Colorado, whose contributions were
established by Colorado statute. In 1997, the State made a one-time contribution of$39,000,000
to fund past and future service costs for all firefighters and police officers hired prior to January
1, 1997. Members hired on or after January 1, 1997, began contributing 2.4 percent of base
salary to this Plan as of January 1, 1997. The contribution increased to 2.6 percent of base salary
as of January 1, 2007, to 2.7 percent of base salary on January 1, 2017, to 2.8 percent of base
salary on January 1, 2019, to 3.0 percent of base salary on January 1, 2021, and to 3.2 percent of
base salary on January 1, 2022 and may be increased 0.2 percent annually by the FPPA Board.
This percentage can vary depending on actuarial experience. The percentage contribution may
either be paid entirely by the employer or member, or it may be split between the employer and
the member. The City contributes the full 3.2 percent of covered salary for each eligible
member. Member contributions to the Statewide Death and Disability Plan are not required.
Since the City's contribution is elective and could be passed on to the member, no long-term
liability is outstanding pursuant to GASB Statement No. 75.
For the years ended December 31, 2020, 2021, and 2022, City contributions totaled $128,236,
$130,371, and$146,272, respectively.
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(PERA)
The City participates in the Local Government Division Trust Fund (Trust), a cost-sharing
multiple-employer defined benefit pension plan administered by the Public Employees'
Retirement Association of Colorado (PERA). The Trust provides retirement and disability,
annual increases, and death benefits for members or their beneficiaries. All civilian employees of
the City are members of the Trust.
The City also contributes to the Health Care Trust Fund (Health Fund), a cost-sharing multiple-
employer healthcare trust administered by PERA. The Health Fund provides a health care
premium subsidy to PERA participating benefit recipients and their eligible beneficiaries.
81
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(PERA) (CONTINUED)
Plan Description
Eligible employees of the City are provided with pensions through the Local Government
Division Trust Fund (LGDTF)—a cost-sharing multiple-employer defined benefit pension plan
administered by PERA. Plan benefits are specified in Title 24, Article 51 of the Colorado
Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable
provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended
from time to time by the Colorado General Assembly. PERA issues a publicly available annual
comprehensive financial report that can be obtained at www.copera.org/investments/pera-
financial-reports.
Pension Benefits
PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined
by the amount of service credit earned and/or purchased, highest average salary, the benefit
structure(s) under which the member retires, the benefit option selected at retirement, and age at
retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713,
and 1714.
The lifetime retirement benefit for all eligible retiring employees under the PERA Benefit
Structure is the greater of the:
• Highest average salary multiplied by 2.5 percent and then multiplied by years of
service credit
• The value of the retiring employee's member contribution account plus a 100 percent
match on eligible amounts as of the retirement date. This amount is then annuitized
into a monthly benefit based on life expectancy and other actuarial factors.
In all cases the service retirement benefit is limited to 100 percent of highest average salary and
also cannot exceed the maximum benefit allowed by federal Internal Revenue Code.
Members may elect to withdraw their member contribution accounts upon termination of
employment with all PERA employers; waiving rights to any lifetime retirement benefits earned.
If eligible, the member may receive a match of either 50 percent or 100 percent on eligible
amounts depending on when contributions were remitted to PERA, the date employment was
terminated, whether 5 years of service credit has been obtained and the benefit structure under
which contributions were made.
Benefit recipients who elect to receive a lifetime retirement benefit are generally eligible to
receive post-retirement cost-of-living adjustments (COLAs), referred to as annual increases in
82
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
the C.R.S. Benefit recipients under the PERA benefit structure who began eligible employment
before January 1, 2007 receive an annual increase of 2 percent, unless PERA has a negative
investment year, in which case the annual increase for the next three years is the lesser of 2
percent or the average of the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W) for the prior calendar year. Benefit recipients under the PERA benefit
structure who began eligible employment after January 1, 2007 receive an annual increase of the
lesser of 2 percent or the average CPI-W for the prior calendar year, not to exceed 10 percent of
PERA's Annual Increase Reserve for the LGDTF.
Disability benefits are available for eligible employees once they reach five years of earned
service credit and are determined to meet the definition of disability. The disability benefit
amount is based on the retirement benefit formula shown above considering a minimum 20 years
of service credit, if deemed disabled.
Survivor benefits are determined by several factors, which include the amount of earned service
credit, highest average salary of the deceased, the benefit structure(s) under which service credit
was obtained, and the qualified survivor(s) who will receive the benefits.
Contributions
Eligible employees of the City are required to contribute to the LGDTF at a rate set by Colorado
statute. The contribution requirements are established under C.R.S. § 24-51-401, et seq.
The City's contribution rate for the year ended December 31, 2022 was 14.73 percent of covered
salaries. The contribution rate for members was 9.0 percent of covered salaries. A portion of the
City's contribution (1.02 percent of covered salaries) was appointed to the Health Care Trust
Fund(see Note 16).
Employer contributions are recognized by the LGDTF in the period in which the compensation
becomes payable to the member and the City is statutorily committed to pay the contributions to
the LGDTF. Employer contributions recognized by the LGDTF from the City were $832,929 to
the Trust and $63,031 to the Health Care Trust Fund, for a total City contribution of$895,960 for
the year ended December 31, 2022.
83
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At December 31, 2022, the City reported an asset of$624,887 or its proportionate share of the
net pension asset. The net pension asset was measured as of December 31, 2021, and the total
pension asset used to calculate the net pension asset was determined by an actuarial valuation as
of December 31, 2020. Standard update procedures were used to roll forward the total pension
asset to December 31, 2021. The City's proportion of the net pension asset was based on the
City's contributions to the LGDTF for the calendar year 2021 relative to the total contributions
of participating employers to the LGDTF.
At December 31, 2021, the City's proportion was 0.73 percent, which was an increase of 0.02
percent from its proportion measured as of December 31, 2020.
For the year ended December 31, 2022, the City recognized pension revenue of$(2,207,113).
Pension revenue for 2022 was allocated to the following functions/programs:
Governmental
Activities
General Government $ (641,737)
Municipal Court (80,620)
Community Development (268,734)
Public Works (268,734)
Police Department (356,073)
Arts and Cultural (591,215�
Total Pension Revenue (2.207.1131
84
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Beginning Deferral Amounts as of Prior $ 4,326,565 $ 6,425,184
Measurement Date, December 31, 2020
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Differences Between Actual and Expected
Experience 159,237
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in Assumptions - 684,557
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Net Difference Between Actual and Projected _ 1,394,061
Earnings on Pension Plan Investments
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in Proportion and Differences
Between City Contributions and Proportionate (722,099) -
Share of Contributions
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
City Contributions Subsequent to the 832 929
Measurement Date
Total $ 4,437,396 $ 8,663,039
$832,929 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Amounts Reported as Deferred Outflows and
Year Ended December 31, Deferred Inflows of Resources Recognized in
Pension Ex ense
---2022 --------------�---------------------------------------------------------------------------------------------------------------------------------------�1,066,405)
------------------------------------------------------------------------------------------ � -�----
2023 2,032,032
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2024 (1,304,207)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2025 (655,930)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2026 -
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Thereafter -
Total $ (5,058,573)
85
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Actuarial Assumptions
The December 31, 2020 actuarial valuation used the following actuarial cost method, actuarial
assumptions, and other inputs:
Price Inflation 2.30 Percent
Real Wage Growth 0.70 Percent
Wage Inflation 3.00 Percent
Salary Increases, Including Wage Inflation 3.20— 11.30 Percent
Long-term Investment Rate of Return, Net of Pension
Plan Investment Expenses, Including Price Inflation 7.25 Percent
Discount Rate 7.25 Percent
Post-retirement Benefit Increases:
PERA Benefit Structure Hired Prior to 1/1/07 1.00 Percent
PERA Benefit Structure Hired After 12/31/06 Financed by the Annual Increase
(Ad Hoc, Substantively Automatic) Reserve (AIR)
The actuarial assumptions used in the December 31, 2020 valuation were based on the results of
the 2020 experience analysis, dated October 28, 2020, for the period January 1, 2016 through
December 31, 2019. Revised economic and demographic assumptions were adopted by PERA's
Board on November 20, 2020.
86
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Healthy mortality assumptions for active members reflect the PubG-2010 Employee Table with
generational projection using scale MP-2019.
Healthy, post-retirement mortality assumptions reflect the PubG-2010 Healthy Retiree Table,
adjusted as follows:
• Males: 94% of the rates prior to age 80 and 90% of the rates for ages 80 and older, with
generational projection using scale MP-2019.
• Females: 87% of the rates prior to age 80 and 107% of the rates for ages 80 and older,
with generational proj ection using scale MP-2019.
For disabled retirees, the mortality assumption was based on the unadjusted PubS-2010 Disabled
Retiree Table with generational projection using scale MP-2019.
The long-term expected return on plan assets is reviewed as part of regular experience studies
prepared every four or five years for PERA. Recently, this assumption has been reviewed more
frequently. The most recent analyses were outlined in the Experience Study report dated October
28, 2020.
Several factors were considered in evaluating the long-term rate of return assumption for the
LGDTF, including long-term historical data, estimates inherent in current market data, and a log-
normal distribution analysis in which best-estimate ranges of expected future real rates of return
(expected return, net of investment expense and inflation) were developed by the investment
consultant for each major asset class. These ranges were combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and then adding expected inflation.
87
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
The PERA Board first adopted the 7.25 percent long-term eXpected rate of return as of
November 18, 2016. Following an asset/liability study, the Board reaffirmed the assumed rate of
return at the Board's November 15, 2019, meeting, to be effective January 1, 2020. As of the
most recent affirmation of the long-term rate of return, the target asset allocation and best
estimates of geometric real rates of return for each major asset class are summarized in the table
as follows:
Asset Class Target 30 Year Expected Geometric Real
Allocation Rate of Return
Global E uit 54% 5.60%
Fixed Income 23% 1.30%
Private E uit 8.50% 7.10%
Real Estate 8.50% 4.40%
Alternatives 6.00% 4.70%
Total 100.00%
In setting the long-term expected rate of return, projections employed to model future returns
provide a range of expected long-term returns that, including expected inflation, ultimately
support a long-term expected rate of return assumption of 7.25%.
Discount Rate
The discount rate used to measure the total pension liability was 7.25 percent. The basis for the
projection of liabilities and the fiduciary net position used to determine the discount rate was an
actuarial valuation performed as of December 31, 2020 and the financial status of the Trust Fund
as of the prior measurement date (December 31, 2020). In addition, the following methods and
assumptions were used in the projection of cash flows:
• Total covered payroll for the initial projection year consists of the covered payroll of the
active membership present on the valuation date and the covered payroll of future plan
members assumed to be hired during the year. In subsequent projection years, total
covered payroll was assumed to increase annually at a rate of 3.00%.
• Employee contributions were assumed to be made at the member contribution rates in
effect for each year, including the required adjustments resulting from the 2018 AAP
assessment, and the additional 0.50%, resulting from the 2020 AAP assessment,
statutorily recognized July 1, 2021, and effective July 1, 2022. Employee contributions
for future plan members were used to reduce the estimated amount of total service costs
for future plan members.
88
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
• Employer contributions were assumed to be made at rates equal to the fixed statutory
rates specified in law for each year, required adjustments resulting from the 2018 AAP
assessment, and the additional 0.50%, resulting from the 2020 AAP assessment,
statutorily recognized July 1, 2021, and effective July 1, 2022. Employer contributions
also include current and estimated future AED and SAED, until the actuarial value
funding ratio reaches 103 percent, at which point, the AED and SAED will each drop
0.50 percent every year until they are zero. Additionally, estimated employer
contributions included reductions for the funding of the AIR and retiree health care
benefits. For future plan members, employer contributions were further reduced by the
estimated amount of total service costs for future plan members not financed by their
member contributions.
• Employer contributions and the amount of total service costs for future plan members
were based upon a process used by the plan to estimate future actuarially determined
contributions assuming an analogous future plan member growth rate.
• The AIR balance was excluded from the initial fiduciary net position, as, per statute, AIR
amounts cannot be used to pay benefits until transferred to either the retirement benefits
reserve or the survivor benefits reserve, as appropriate. AIR transfers to the fiduciary net
position and the subsequent AIR benefit payments were estimated and included in the
proj ections.
• The projected benefit payments reflect the lowered annual increase (AI) cap, from 1.25
percent to 1.00 percent, resulting from the 2020 AAP assessment, statutorily recognized
July 1, 2021, and effective July 1, 2022.
• Benefit payments and contributions were assumed to be made at the middle of the year.
Based on the above assumptions and methods, the LGDTF's fiduciary net position was projected
to be available to make all projected future benefit payments of current members. Therefore, the
long-term expected rate of return of 7.25 percent on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability. The discount rate
determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25
percent. There was no change in the discount rate from the prior measurement date.
89
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 15 - PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF COLORADO
(CONTINUED)
Sensitivity of the City's proportionate share of the net pension liability to changes in the
discount rate.
The following presents the LGDTF's collective net pension liability calculated using the
discount rate of 7.25 percent as of the measurement date, as well as if it were calculated using a
discount rate that is 1-percentage-point lower (6.25 percent) or 1-percentage-point higher (8.25
percent) than the current rate:
1.00% Decrease Current Discount 1.00% Increase
(6.25%) Rate (7.25%) (8.25%)
City's Proportionate Share of the $ 4,284,601 $ (624,887) $ (4,731,462)
Net Pension Liabilit /(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the LGDTF's fiduciary net position is available in PERA's
comprehensive annual financial report which can be obtained at:
www.copera.or�/investments/pera-financial-reports.
Defined Contribution Pension Plans
Voluntary Investment Program
Plan Description
Employees of the City that are also members of the LGDTF inay voluntarily contribute to the
Voluntary Investment Program, an Internal Revenue Code Section 401(k) defined contribution
plan administered by PERA. Title 24, Article 51, Part 14 of the C.R.S., as amended, assigns the
authority to establish the Plan provisions to the PERA Board of Trustees. PERA issues a publicly
available comprehensive annual financial report for the Program. That report can be obtained at
www.copera.org/investments/pera-financial-reports.
90
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 — OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan)
Summary of Significant Accounting Policies
The City participates in the Health Care Trust Fund (HCTF), a cost-sharing multiple-employer
defined benefit other postemployment benefit (OPEB) fund administered by the Public
Employees' Retirement Association of Colorado ("PERA"). The net OPEB liability, deferred
outflows of resources and deferred inflows of resources related to OPEB, OPEB expense,
information about the fiduciary net position and additions to/deductions from the fiduciary net
position of the HCTF have been determined using the economic resources measurement focus
and the accrual basis of accounting. For this purpose, benefits paid on behalf of health care
participants are recognized when due and/or payable in accordance with the benefit terms.
Investments are reported at fair value.
Plan Description
Eligible employees of the City are provided with OPEB through the HCTF—a cost-sharing
multiple-employer defined benefit OPEB plan administered by PERA. The HCTF is established
under Title 24, Article 51, Part 12 of the Colorado Revised Statutes (C.R.S.), as amended.
Colorado State law provisions may be amended from time to time by the Colorado General
Assembly. Title 24, Article 51, Part 12 of the C.R.S., as amended, sets forth a framework that
grants authority to the PERA Board to contract, self-insure, and authorize disbursements
necessary in order to carry out the purposes of the PERACare program, including the
administration of the premium subsidies. Colorado State law provisions may be amended from
time to time by the Colorado General Assembly. PERA issues a publicly available
comprehensive annual financial report that can be obtained at www.copera.or�/investments/pera-
financial-reports.
Benefits Provided
The HCTF provides a health care premium subsidy to eligible participating PERA benefit
recipients and retirees who choose to enroll in one of the PERA health care plans, however, the
subsidy is not available if only enrolled in the dental and/or vision plan(s). The health care
premium subsidy is based upon the benefit structure under which the member retires and the
member's years of service credit. For members who retire having service credit with employers
in the Denver Public Schools (DPS) Division and one or more of the other four Divisions (State,
School, Local Government and Judicial), the premium subsidy is allocated between the HCTF
and the Denver Public Schools Health Care Trust Fund (DPS HCTF). The basis for the amount
of the premium subsidy funded by each trust fund is the percentage of the member contribution
account balance from each division as it relates to the total member contribution account balance
from which the retirement benefit is paid.
91
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
C.R.S. § 24-51-1202 et seq. specifies the eligibility for enrollment in the health care plans
offered by PERA and the amount of the premium subsidy. The law governing a benefit
recipient's eligibility for the subsidy and the amount of the subsidy differs slightly depending
under which benefit structure the benefits are calculated. All benefit recipients under the PERA
benefit structure and all retirees under the DPS benefit structure are eligible for a premium
subsidy, if enrolled in a health care plan under PERACare.
Enrollment in the PERACare is voluntary and is available to benefit recipients and their eligible
dependents, certain surviving spouses, and divorced spouses and guardians, among others.
Eligible benefit recipients may enroll into the program upon retirement, upon the occurrence of
certain life events, or on an annual basis during an open enrollment period.
PERA Benefit Structure
The maximum service-based premium subsidy is $230 (actual dollars) per month for benefit
recipients who are under 65 years of age and who are not entitled to Medicare; the maXimum
service-based subsidy is $115 (actual dollars) per month for benefit recipients who are 65 years
of age or older or who are under 65 years of age and entitled to Medicare. The basis for the
maximum service-based subsidy, in each case, is for benefit recipients with retirement benefits
based on 20 or more years of service credit. There is a 5 percent reduction in the subsidy for each
year less than 20. The benefit recipient pays the remaining portion of the premium to the extent
the subsidy does not cover the entire amount.
For benefit recipients who have not participated in Social Security and who are not otherwise
eligible for premium-free Medicare Part A for hospital-related services, C.R.S. § 24-51-1206(4)
provides an additional subsidy. According to the statute, PERA cannot charge premiums to
benefit recipients without Medicare Part A that are greater than premiums charged to benefit
recipients with Part A for the same plan option, coverage level, and service credit. Currently, for
each individual PERACare enrollee, the total premium for Medicare coverage is determined
assuming plan participants have both Medicare Part A and Part B and the difference in premium
cost is paid by the HCTF or the DPS HCTF on behalf of benefit recipients not covered by
Medicare Part A.
Contributions
Pursuant to Title 24, Article 51, Section 208(1)(� of the C.R.S., as amended, certain
contributions are apportioned to the HCTF. PERA-affiliated employers of the State, School,
Local Government, and Judicial Divisions are required to contribute at a rate of 1.02 percent of
PERA-includable salary into the HCTF.
92
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
Employer contributions are recognized by the HCTF in the period in which the compensation
becomes payable to the member and the City is statutorily committed to pay the contributions.
Employer contributions recognized by the HCTF from the City were $63,031 for the year ended
December 31, 2022.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to OPEB
At December 31, 2022, the City reported a liability of$488,565 for its proportionate share of the
net OPEB liability. The net OPEB liability for the HCTF was measured as of December 31,
2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation as of December 31, 2020. Standard update procedures were used to roll-
forward the total OPEB liability to December 31, 2021. The City's proportions of the net OPEB
liability was based on the City's contributions to the HCTF for the calendar year 2021 relative to
the total contributions of participating employers to the HCTF.
At December 31, 2021, the City's proportion was 0.057 percent, which was an increase of
0.0023 from its proportion measured as of December 31, 2020.
For the year ended December 31, 2022 the City recognized OPEB revenue of$(34,489).
OPEB revenue for 2021 was allocated to the following functions/programs:
Governmental
Activities
General Government $ (10,027)
Municipal Court (1,260)
Community Development (4,199)
Public Works (4,199)
Police Department (5,564)
Arts and Cultural (9,238�
Total Pension Revenue (34.4891
93
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Beginning Deferral Amounts as of Prior $ 134,069 $ 166,277
Measurement Date, December 31, 2020
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Differences Between Actual and Expected (626) 2,328
__Experience
------ ------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in Assumptions 6,257 (5,160)
------------------------------------------------------------------------------- -------------------------------------------------------------------------------..........................................................................................................................................................
Net Difference Between Actual and Projected _ 9,144
Earnings on OPEB Plan Investments
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in Proportion and Differences
Between City Contributions and Proportionate (55,640) -
Share of Contributions
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
City Contributions Subsequent to the 63,031 -
Measurement Date
Total $ 147,090 $ 172,589
$63,031 reported as deferred outflows of resources related to OPEB, resulting from contributions
subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability
in the year ended December 31, 2022. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Amounts Reported as Deferred Outflows and
Year Ended December 31, Deferred Inflows of Resources Recognized in
Pension Expense
2022 $ (14,327)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2023 (26,636)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2024 (33,940)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2025 (14,497)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
---2026--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------6-19------
Thereafter 252
Total $ (88,529)
94
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
Actuarial Assumptions
The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the
following actuarial cost method, actuarial assumptions, and other inputs:
Actuarial Cost Method Entry Age
Price Inflation 2.30 Percent
Real Wage Growth 0.70 Percent
Wage Inflation 3.00 Percent
Salary Increases, Including Wage Inflation 3.20— 11.30 Percent
Long-term Investment Rate of Return,Net of OPEB
Plan Investment Expenses, Including Price Inflation 7.25 Percent
Discount Rate 7.25 Percent
Health Care Cost Trend Rates
PERA Benefit Structure:
Service-based Premium Subsidy 0.00 Percent
PERACare Medicare Plans 4.50 Percent in 2021,
Gradually Decreasing to
4.50 Percent in 2029
Medicare Part A Premiums 3.75 Percent in 2021,
Gradually Increasing to
4.50 percent in 2029
In determining the additional liability for PERACare enrollees who are age 65 or older and who
are not eligible for premium—free Medicare Part A, the following monthly costs/premiums
(actual dollars) are assumed for 2021 for the PERA Benefit Structure:
Cost for Members Premiums for Monthly Cost
Medicare Plan Without Medicare Members Without Adjusted to
Part A Medicare Part A A e 65
Medicare Advantage/Self- $633 $230 $591
Insured Prescri tion
Kaiser Permanente Medicare 596 199 562
Advanta e HMO
The 2021 Medicare Part A premium is $471 (actual dollars)per month.
95
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
All costs are subject to the health care cost trend rates, as discussed below.
Health care cost trend rates reflect the change in per capita health costs over time due to factors
such as medical inflation, utilization, plan design, and technology improvements. For the PERA
benefit structure, health care cost trend rates are needed to project the future costs associated
with providing benefits to those PERACare enrollees not eligible for premium-free Medicare
Part A.
Health care cost trend rates for the PERA benefit structure are based on published annual health
care inflation surveys in conjunction with actual plan experience (if credible), building block
models and heuristics developed by health plan actuaries and administrators. In addition,
projected trends for the Federal Hospital Insurance Trust Fund (Medicare Part A premiums)
provided by the Centers for Medicare & Medicaid Services are referenced in the development of
these rates. Effective December 31, 2020, the health care cost trend rates for Medicare Part A
premiums were revised to reflect the current expectation of future increases in rates of inflation
applicable to Medicare Part A premiums.
96
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
The PERA benefit structure health care cost trend rates that were used to measure the total OPEB
liability are summarized in the table below:
PERACare Medicare Part A
Year Medicare Plans Premiums
2021 4.50% 3.75%
2022 6.00% 3.75%
2023 5.80% 4.00%
2024 5.60% 4.00%
2025 5.40% 4.00%
2026 5.10% 4.25%
2027 4.90% 4.25%
2028 4.70% 4.25%
2029+ 4.50% 4.50%
Mortality assumptions used in the December 31, 2020 valuation for the State Division, School
Division, Local Government Division, and Judicial Division Trust Funds as shown below were
applied, as applicable, in the December 31, 2019 valuation for the Trust Fund. Affiliated
employers of these Division Trust Funds in the Trust Fund.
Healthy mortality assumptions for active members were based on the PubG-2010 Employee
Table with generational projection using scale MP-2019.
Post-retirement non-disabled mortality assumptions for the State and Local Government
Divisions used in the December 31, 2020, valuation were based on the PubG-2010 Healthy
Retiree Table, adjusted as follows:
. Males: 94% of the rates prior to age 80 and 90% of the rates for ages 80 and older, with
generational projection using scale MP-2019.
• Females: 87% of the rates prior to age 80 and 107% of the rates for ages 80 and older,
with generational proj ection using scale MP-2019.
The mortality assumption for disabled retirees was based PubNS-2010 Disabled Retiree Table
using 99% of the rates for all ages with generational projection using scale MP-2019.
97
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
The mortality tables described above are generational mortality tables developed on a head-count
weighted basis.
The following health care costs assumptions were updated and used in the roll forward
calculation for the Trust Fund:
• Initial per capita health care costs for those PERACare enrollees under the PERA
benefit structure who are expected to attain age 65 and older ages and are not eligible
for premium-free Medicare Part A benefits were updated to reflect the change in costs
for the 2021 plan year.
• The health care cost trend rates for Medicare Part A premiums were revised to reflect
the then-current expectation of future increases in rates of inflation applicable to
Medicare Part A premiums.
The actuarial assumptions used in the December 31, 2020, valuation were based on the results of
the 2020 experience analysis, dated October 28, 2020, and November 4, 2020, for the period
January 1, 2016, through December 31, 2019. Revised economic and demographic assumptions
were adopted by PERA's Board on November 20, 2020.
The long-term expected return on plan assets is reviewed as part of regular experience studies
prepared every four to five years for PERA. Recently this assumption has been reviewed more
frequently. The most recent analyses were outlined in the Experience Study report dated October
28, 2020.
Several factors are considered in evaluating the long-term rate of return assumption, including
long-term historical data, estimates inherent in current market data, and a log-normal distribution
analysis in which best-estimate ranges of expected future real rates of return (expected return, net
of investment expense and inflation) were developed for each major asset class. These ranges
were combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentages and then adding expected inflation.
98
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
The PERA Board first adopted the 7.25 percent long-term expected rate of return as of
November 18, 2016. Following an asset/liability study, the Board reaffirmed the assumed rate of
return at the Board's November 15, 2019, meeting, to be effective January 1, 2020. As of the
most recent reaffirmation of the long-term rate of return, the target asset allocation and best
estimates of geometric real rates of return for each major asset class are summarized in the table
as follows:
Asset Class Target 30 Year Expected Geometric Real
Allocation Rate of Return
Global E uit 54.00% 5.60%
Fixed Income 23.00% 1.30%
Private E uit 8.50% 7.10%
Real Estate 8.50% 4.40%
Alternatives 6.00% 4.70%
Total 100.00%
In setting the long-term expected rate of return, projections employed to model future returns
provide a range of expected long-term returns that, including expected inflation, ultimately
support a long-term expected nominal rate of return assumption of 7.25 percent.
Sensitivity of the City's proportionate share of the net OPEB liability to changes in the Health
Care Cost Trend Rates
The following presents the net OPEB liability using the current health care cost trend rates
applicable to the PERA benefit structure, as well as if it were calculated using health care cost
trend rates that are one percentage point lower or one percentage point higher than the current
rates:
1% Current 1% Increase in
Decrease in Trend Rates Trend Rates
Trend Rates
Initial PERACare Medicare Trend Rate 3.50% 4.50% 5.50%
Ultimate PERACare Medicare Trend Rate 3.50% 4.50% 5.50%
Initial Medicare Part A Trend Rate 2.75% 3.75% 4.75%
Ultimate Medicare Part A Trend Rate 3.50% 4.50% 5.50%
City's Proportionate Share of the OPEB $474,535 $488,565 $504,818
Liabilit
99
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
Discount Rate
The discount rate used to measure the total OPEB liability was 7.25 percent. The basis for the
projection of liabilities and the FNP used to determine the discount rate was an actuarial
valuation performed as of December 31, 2020, and the financial status of the Trust Fund as of the
prior measurement date (December 31, 2020). In addition, the following methods and
assumptions were used in the projection of cash flows:
• Updated health care cost trend rates for Medicare Part A premiums as of the December
31, 2021, measurement date.
• Total covered payroll for the initial projection year consists of the covered payroll of the
active membership present on the valuation date and the covered payroll of future plan
members assumed to be hired during the year. In subsequent projection years, total
covered payroll was assumed to increase annually at a rate of 3.00%.
• Employer contributions were assumed to be made at rates equal to the fixed statutory
rates specified in law and effective as of the measurement date. For future plan members,
employer contributions were based upon a process to estimate future actuarially
determined contributions assuming an analogous future plan member growth rate.
• Estimated transfers of dollars into the Trust Fund representing a portion of purchase
service agreements intended to cover the costs associated with OPEB benefits.
• Benefit payments and contributions were assumed to be made at the middle of the year.
Based on the above assumptions and methods, the projection test indicates the HCTF's fiduciary
net position was projected to make all projected future benefit payments of current members.
Therefore, the long-term expected rate of return of 7.25 percent on OPEB plan investments was
applied to all periods of projected benefit payments to determine the total OPEB liability. The
discount rate determination does not use the municipal bond index rate, and therefore, the
discount rate is 7.25 percent. There was no change in the discount rate from the prior
measurement date.
100
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 16 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB Defined Benefit
Plan) (CONTINUED)
Sensitivity of the City's proportionate share of the net OPEB liability to changes in the
discount rate
The following presents the proportionate share of the net OPEB liability calculated using the
discount rate of 7.25 percent, as well as what the proportionate share of the net OPEB liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25
percent) or 1-percentage-point higher(8.25 percent) than the current rate:
Current
1.00% Decrease Discount Rate 1.00% Increase
(6.25%) (7.25%) (8.25%)
City's Proportionate Share of $ 567,418 $ 488,565 $ 421,212
the Net OPEB Liabilit /(Asset)
OPEB Plan Fiduciary Net Position
Detailed information about the HCTF's fiduciary net position is available in PERA's
comprehensive annual financial report which can be obtained at
www.copera.or�/investments/pera-financial-reports.
NOTE 17 - DEFERRED COMPENSATION PLAN - ASSETS IN TRUST
Plan Description
The City has a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. This plan is administered by Mission Square. Participation in the plan is optional
for all civilian employees. The plan allows the employees to defer a portion of their salary until
future years.
NOTE 18 - MAJOR TAXPAYERS
For the year ending December 31, 2022, approximately 16% of the City's sales tax revenue was
received from three retailers and of those three retailers, one retailer constituted approximately
8% of the total sales tax revenue.
101
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 19 - CONTINGENCIES
The City has been named in various pending or threatened litigation, claims or assessments. The
ultimate outcome/resolution of these matters is not known at this time. The City is monitoring
the progress of these matters and has referred various matters to the City Attorney's office for
consultation and representation. Claims are insured to $5,000,000 and representation provided by
Colorado Intergovernmental Risk Sharing Agency.
NOTE 20 - RELATED PARTY
The developer and current owner of portions of the property which constitutes the Park Meadows
Business Improvement District (the District) is Park Meadows Mall, LLC. The members of the
Board of Directors of the District are employees of the management company for the Park
Meadows Mall. The management company owns an interest in Park Meadows, LLC.
Accordingly, the members of the Board of Directors may have conflicts of interest in dealing
with the District. Lease agreements have been entered into between the District and Park
Meadows Mall, LLC. The District pays monthly lease amounts to Park Meadows Mall, LLC
related to the Lone Tree police substation as well as rent of the indoor common area and the
ground lease for the Vista's common area. Pursuant to these leases, the District made lease
payments of $644,660 in 2022. All future lease payments are subject to the District's annual
appropriation of funds.
NOTE 21 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, thefts or damage to, or destruction of
assets; errors or omissions; injuries to employees or acts of God.
The City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA).
CIRSA is a joint self-insurance pool created by intergovernmental agreement to provide
property, liability and workers' compensation coverage to its members. CIRSA is governed by a
seven-member Board elected by and from its members.
Coverage is provided through pooling of self-insured losses and the purchase of excess insurance
coverage. CIRSA has a legal obligation for claims against its members to the extent that funds
are available in its annually established loss fund and that amounts are available from insurance
providers under excess specific and aggregate insurance contracts. Losses incurred in excess of
loss funds and amounts recoverable from excess insurance are direct liabilities of the
participating members. CIRSA has indicated that the amount of any excess losses would be
billed to members in proportion to their contributions in the year such excess occurs, although it
is not legally required to do so.
Settled claims have not exceeded insurance coverage in the last five years.
102
CITY OF LONE TREE
NOTES TO FINANCIAL STATEMENTS
December 31, 2022
NOTE 22 - 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
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. The City voters approved an election question in 1996 and 1999 to remove limits
on the amount of revenue the City is allowed to collect, spend and retain.
On May 6, 2008, City voters approved a sales and use tax increase of .1875% for arts and
cultural facilities and approved related sales and use taxes be increased by $2,650,000 in the first
full fiscal year (2010) and by whatever additional amounts are raised annually thereafter.
Additionally, City voters approved a sales and use tax increase of.125% for park and recreation
improvements and approved related sales and use taxes be increased by $1,750,000 in the first
full fiscal year (2010) and by whatever additional amounts are raised annually thereafter.
On November 2, 2021 City voters approved a sales and use taX increase of 1% to be used to
maintain vital city services including repairing, maintaining, and improving City streets and
aging infrastructure, maintaining service and response times for public safety and maintaining
and improving parks, trails, and open space and approved related sales and use taxes be
increased by $15,563,749 annually beginning January 1, 2022 and by such amounts as are raised
annually thereafter for a period of ten years.
TABOR 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 City'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 the
interpretation of how to calculate Fiscal Year Spending limits, will require judicial interpretation.
103
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF LONE TREE
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget Budget Variance
Amounts Amounts Actual with
Original Final Amounts Final Budget
REVENUES
TAXES
Sales Tax $ 35,175,783 $ 35,175,783 $ 37,376,292 $ 2,200,509
Use Tax-Retail 997,333 997,333 1,091,846 94,513
Use Tax-Building Materials 1,750,000 1,750,000 1,597,589 (152,411)
Lodging Tax 1,277,652 1,277,652 1,575,329 297,677
Admissions Tax 285,206 285,206 339,902 54,696
39,485,974 39,485,974 41,980,958 2,494,984
FRANCHISE FEES
Electric and Gas 894,854 894,854 1,072,787 177,933
Cable Television 239,097 239,097 230,102 (8,995)
1,133,951 1,133,951 1,302,889 168,938
INTERGOVERNMENTAL
Highway Users Tax Fund (HUTF) 355,849 355,849 371,392 15,543
Conservation Trust Fund 86,006 86,006 91,177 5,171
Cigarette Tax 102,415 102,415 91,582 (10,833)
County Road and Bridge Shareback 1,902,663 1,902,663 1,925,255 22,592
Douglas County Shareback-Transportation 2,008,401 2,008,401 2,628,978 620,577
Motor Vehicle Registration Fees 45,615 45,615 47,946 2,331
Regional Improvements Contribution-RRN 255,596 255,596 255,617 21
Reimbursable Costs 6,744,164 6,799,164 2,237,451 (4,561,713)
COVID-19 Related Funding 1,644,079 1,644,079 1,644,079 -
Metropolitan Football Stadium Shareback - - 1,010,137 1,010,137
Grants 736,259 746,259 142,591 (603,668)
13,881,047 13,946,047 10,446,205 (3,499,842)
(Continued)
104
CITY OF LONE TREE
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
(Continued)
Budget Budget Variance
Amounts Amounts Actual with
Original Final Amounts Final Budget
LICENSES,FEES AND CHARGES
Sales,Use Tax and Business License Fees 12,801 12,801 12,281 (520)
Liquor License Fees 17,968 17,968 55,955 37,987
BuildingPermitFees 1,147,000 1,299,750 1,291,589 (8,161)
Planning Fees 115,075 ll 5,075 184,891 69,816
Engineering Fees 396,603 546,603 539,579 (7,024)
Other 101,855 101,855 103,945 2,090
1,791,302 2,094,052 2,188,240 94,188
FINES AND FORFEITURES
CourtFees 45,940 45,940 39,177 (6,763)
Vehicle Violation and Other Fines 395,576 395,576 342,252 (53,324)
Victims Assistance Surcharge Fees 13,451 13,451 11,975 (1,476)
454,967 454,967 393,404 (61,563)
OTHER
Net Investment Income 12,200 12,200 583,217 571,017
Police Department Fees 163,858 163,858 148,367 (15,491)
Tenant Rental Income 185,940 185,940 164,717 (21,223)
Other 130,450 133,207 234,545 101,338
492,448 495,205 1,130,846 635,641
57,239,689 57,610,196 57,442,542 (167,654)
(Continued)
105
CITY OF LONE TREE
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
(Continued)
Budget Budget Variance
Amounts Amounts Actual with
Original Final Amounts Final Budget
EXPENDITURES
GENERAL GOVERNMENT
City Council Expenditures 42,000 42,000 39,431 2,569
CityCouncilStipend 72,750 72,751 71,633 1,118
Administrative Services-Salaries and Benefits 622,551 632,792 610,371 22,421
City Clerk-Salaries and Benefits 287,798 297,391 298,963 (1,572)
City Clerk 47,200 47,200 27,837 19,363
Human Resources 113,000 113,000 109,333 3,667
Information Technology 615,404 615,404 556,506 58,898
Insurance and Risk Management 526,835 526,835 507,464 19,371
Finance-Salaries and Benefits 677,153 693,787 654,722 39,065
Finance 75,892 75,890 123,631 (47,741)
Audit 43,000 43,000 35,500 7,500
City Manager's Offlce-Salaries and Benefits 1,156,951 1,224,920 1,185,124 39,796
Dues and Memberships 125,134 125,134 125,374 (240)
Legal-General 390,240 390,240 390,240 -
Legal-Special 30,000 30,000 24,554 5,446
Consulting 35,000 35,000 40,603 (5,603)
Community Support 52,000 49,000 15,344 33,656
Youth Initiatives 19,800 19,800 19,800 -
Housing Partnership 35,000 35,000 35,000 -
Living and Aging Well - 5,757 2,833 2,924
Communications 56,300 133,300 56,142 77,158
Economic Development 142,500 142,500 ll7,851 24,649
Miscellaneous 17,000 17,000 3,131 13,869
5,183,508 5,367,701 5,051,387 316,314
MUNICIPAL COURT
Municipal Judge 30,000 30,000 29,831 169
Legal 36,000 36,000 37,628 (1,628)
Administration 283,477 287,477 241,128 46,349
Office and Software 700 700 489 211
350,177 354,177 309,076 45,101
(Continued)
106
CITY OF LONE TREE
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
(Continued)
Budget Budget Variance
Amounts Amounts Actual with
Original Final Amounts Final Budget
COMMUNITY DEVELOPMENT
SalariesandBenefits 1,120,491 1,147,153 1,063,667 83,486
Contract Services 135,700 288,450 73,524 214,926
Field Supplies 1,700 1,700 831 869
Planning Commission 2,800 2,800 3,505 (705)
Plan Review and Other Inspections 50,000 50,000 50,761 (761)
Elevator Inspection 99,855 99,855 88,092 11,763
City Forestry Program 500 500 - 500
South Metro Partnership 20,000 20,000 12,896 7,104
Miscellaneous 8,980 10,480 12,094 (1,614)
1,440,026 1,620,938 1,305,370 315,568
PUBLIC WORKS
Salaries and Benefits 1,258,236 1,295,683 1,304,074 (8,391)
Street Lighting 450,000 450,000 338,975 111,025
Street Maintenance 795,000 795,000 652,857 142,143
Drainage Maintenance 180,000 180,000 135,876 44,124
Street and Sidewalk Sweeping 60,000 60,000 22,925 37,075
Traffic Signal Energy Cost and Maintenance 257,000 257,000 261,412 (4,412)
Signal Timing 40,000 40,000 36,360 3,640
Snow Removal 1,375,000 1,375,000 1,338,750 36,250
Trash and Recycling Program 625,000 625,000 621,186 3,814
Household Hazardous Program 8,000 8,000 1,799 6,201
Fence Maintenance 25,000 25,000 - 25,000
Materials and Equipment 10,000 10,000 4,604 5,396
EPA Phase 2 Drainage 2,300 2,300 2,585 (285)
State Mandated Noxious Weeds Control 18,500 18,500 18,364 136
Signage and Striping 175,000 175,000 151,398 23,602
Accident Repairs 5,000 5,000 4,135 865
Public Warks Facility Operarions&Equipment 55,000 55,000 52,722 2,278
Software and Support 50,000 50,000 43,533 6,467
Mutt Mitts Contract 15,000 15,000 13,648 1,352
Miscellaneous 3,000 3,000 3,169 (169)
Public Works Vehicle Maintenance and Gas 20,000 28,000 23,735 4,265
Bridge Maintenance 80,000 80,000 39,625 40,375
Lone Tree Link 600,000 600,000 395,280 204,720
Consulting and Surveying 279,400 429,400 384,501 44,899
Facilities 990,050 990,050 1,025,336 (35,286)
7,376,486 7,571,933 6,876,849 695,084
(Continued)
107
CITY OF LONE TREE
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
(Continued)
Budget Budget Variance
Amounts Amounts Actual with
Original Final Amounts Final Budget
POLICE
Salaries and Benefits 7,786,214 7,840,836 7,556,801 284,035
Of�ce and Administration 111,300 116,300 ll0,727 5,573
Uniforms and Equipment 273,504 273,504 229,382 44,122
Vehicles and Equipment 542,890 622,890 474,176 148,714
General Equipment 52,616 52,616 40,889 11,727
Intergovemmental Agreements 892,031 892,031 862,651 29,380
Training 91,100 101,100 99,742 1,358
Community Outreach and Miscellaneous 26,505 26,505 21,025 5,480
9,776,160 9,925,782 9,395,393 530,389
CAPITAL OUTLAY
Overlay and Reconstruction Projects 2,750,000 2,750,000 2,181,018 568,982
Traffic Signalizarion 921,000 921,000 5,526 915,474
Municipal Building Capital Improvements 83,000 83,000 82,374 626
Storm Sewer Improvements 150,000 150,000 52,050 97,950
Civic Center Capital Improvements 10,000 10,000 8,199 1,801
LTAC Facility Capital Improvements 150,000 150,000 106,721 43,279
Concrete Panel Replacement 500,000 500,000 705,568 (205,568)
Vehicles 70,000 70,000 - 70,000
Schweiger Ranch Preservation 10,000 10,000 10,000 -
Electric Vehicle Charging Station 25,000 25,000 24,390 610
ETIP Placeholder - 3,000,000 - 3,000,000
Zoning Code Update 150,000 150,000 - 150,000
Happy Canyon Creek Improvements 150,000 150,000 150,000 -
Securiry Fencing for Officer&Equipment Safety 150,000 200,000 203,495 (3,495)
Advancing Lincoln Avenue 1,950,000 1,950,000 1,060,322 889,678
Acres Green Pedestrian and Bike Bridge 4,200,000 4,200,000 174,208 4,025,792
ERP Cloud Service 17,000 17,000 4,516 12,484
Planning and Permit Software Upgrade 120,000 120,000 ll0,189 9,811
Emergency Repairs 500,000 500,000 319,161 180,839
City-Wide Bicycle Safety Study&Improvements 311,000 311,000 8,439 302,561
RidgeGate Parkway Adaptative Signal Project 250,000 250,000 130,391 119,609
C-470 Trail Connection to RTD Station 2,200,000 2,200,000 275,163 1,924,837
Network Equipment - - 15,083 (15,083)
Securiry Appliances - - 68,282 (68,282)
Lease Inception - - 7,078 (7,078)
Retail Shareback 345,612 345,612 328,351 17,261
RRMD Revenue Shareback-West Side 1,548,752 1,548,752 1,416,637 132,115
(Continued)
108
CITY OF LONE TREE
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
(Continued)
Budget Budget Variance
Amounts Amounts Actual with
Original Final Amounts Final Budget
CAPITAL OUTLAY(continued)
Reimbursement of Sales Taxes-PMBID 8,602,192 8,602,192 7,889,623 712,569
Reimbursement of Property Taxes-PMMD 316,860 316,860 316,860 -
Park and Recreation 603,250 853,250 104,594 748,656
26,083,666 29,383,666 15,758,238 13,625,428
Total Expenditures 50,210,023 54,224,197 38,696,313 15,527,884
EXCESS REVENUES OVER(UNDER)
EXPENDITURES 7,029,666 3,385,999 18,746,229 15,360,230
OTHER FINANCING SOURCES(USES)
Transfers In 575,000 825,000 39,221 (785,779)
Transfers Out (1,439,666) (1,503,423) (1,463,876) 39,547
Lease Inception - - 7,078 7,078
Total Other Financing Sources(Uses) (864,666) (678,423) (1,417,577) (739,154)
NET CHANGE IN FUND BALANCES 6,165,000 2,707,576 17,328,652 14,621,076
FUND BALANCES-BEGINNING OF YEAR 25,355,399 29,606,856 29,606,856 -
FUND BALANCES-END OF YEAR $ 31,520,399 $ 32,314,432 $ 46,935,508 $ 14,621,076
109
CITY OF LONE TREE
SPECIAL REVENUE FUND-CULTURAL AND COMMUNITY SERVICES
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget Budget
Amounts Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Ticket Sales and Handling Fees $ 1,029,579 $ 1,027,540 $ 893,439 $ (134,101)
Rental Fees and Labor Fees 174,479 175,756 230,686 54,930
Concessions and Catering 111,807 ll0,529 96,524 (14,005)
Individual,Corporate and Foundation Contributions 397,800 325,304 295,890 (29,414)
Government Grants 289,962 289,961 356,294 66,333
Miscellaneous 11,791 13,828 5,950 (7,878)
Annual events 14,000 14,000 16,255 2,255
Arts and cultural events 6,000 6,000 8,361 2,361
LTAC Fund 501(c)(3)Contribution - 72,500 68,169 (4,331)
Total Revenues 2,035,418 2,035,418 1,971,568 (63,850)
EXPENDITURES
Administration 167,125 174,476 117,544 56,932
Programming 1,823,902 1,855,541 1,728,203 127,338
Marketing 479,839 487,318 396,566 90,752
Development 284,986 297,120 226,101 71,019
Annual Events 345,422 349,621 327,566 22,055
Arts and Cultural Events 44,262 45,217 32,342 12,875
Total Expenditures 3,145,536 3,209,293 2,828,322 380,971
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (1,110,118) (1,173,875) (856,754) 317,121
OTHER FINANCING SOURCES(USES)
Transfers In 1,439,666 1,503,422 1,463,876 (39,546)
Transfers Out - - - -
Total Other Financing Sources(Uses) 1,439,666 1,503,422 1,463,876 (39,546)
NET CHANGE iN FUND BALANCES 329,548 329,547 607,122 277,575
FUND BALANCES-
BEGINNING OF YEAR 170,934 306,096 306,096 -
FUND BALANCES-END OF YEAR $ 500,482 $ 635,643 $ 913,218 $ 277,575
110
CITY OF LONE TREE
SCHEDULE OF PROPORT[ONATE SHARE OF NET PENS[ON L[ABL[TY(ASSET)
STATE FIRE AND POLICE PENSION PLAN(FPPA)
Last Eight Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2027 2022
City'sproportionofthenetpensionliability/(asset) 0.745% 0.741% 0.710% 0.675% 0.672% 0.593% 0.603% 0.568% 0.542%
Ciry'spropoRionateshareofthenetpensionliabiLity/(asset) $ (666,462) $ (836,472) $ Q2,508) $ 244,075 $ (966,061) $ 749,099 $ (341,150) $ Q,234,174) $ (2,939,160)
City'scoveredpayroll $3,183,366 $ 3,458,225 $ 3,689,690 $ 3,624,431 $ 3,976,381 $ 4,026,278 $ 4,329,357 $ 4,594,732 $ 5,758,747
Ciry's propoRionate share of the net pension IiabiLity/(asset)as a
percentageofitscoveredpayroll 20.9% 242% 03% 6.7% 243% 18.6% 7.9% 26.9% 57.0%
Plan fiduciary net position as a percentage of the total pension
]iabiliry/(asset) 105.8% 106.8% 101.6% 982% 7063% 952% 707.9% 106.7% 1162%
(1)The City implemented GASB 68 beginning in 2015. Information prior to 2014 is not available.
*The amounts presented for each year were determined as of December 31,the measurement date used by the City.
111
CITY OF LONE TREE
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY(ASSET)
PUBLIC RETIREMENT ASSOCIATION OF COLORADO(PERA)
Last Eight Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022
Ciry'sproportionofthenetpensionliability 0.510% 0.523% 0.538% 0.562% 0.610% 0.668% 0.698% 0.712% 0.729%
Ciry's proportionate share of the net pension liability/(asset) $ 4,194,719 $ 4,685,216 $ 5,931,027 $ 7,586,897 $ 6,788,332 $ 8,403,289 $5,105,238 S 3,709,250 $ (624,887)
Ciry's covered payroll $ 2,893,072 $ 3,017,148 $ 3,348,942 S 3,554,612 $ 4,005,795 $ 4,594,877 $5,072,865 $5,207,144 $5,567,306
Ciry's proportionate share of the net pension liability/(asset)as
apercentageofitscoveredpayroll 145.0% 155.3% 177.1% 213.4% 169.5% 182.9% 101$% 712% -112%
Plan fiduciary net position as a percentage of the total pension
liabiliry 777% 80.7% 76.9% 73.6% 79.4% 76.0% 863% 90.9% 101.5%
(1) The City implemented GASB 68 beginning in 2015.Information prior to 2014 is not available.
*The amounts presented for each year were determined as of December 31,the measurement date used by the Ciry.
112
CITY OF LONE TREE
SCHEDULE OF PROPORTIONATE SHARE OF NET OPEB LIAB[LITY(ASSET)
PUBLIC RETIREMENT ASSOCIATION OF COLORADO OTHER POSTEMPLOYMENT BENEFITS(OPEB)
Last Six Fiscal Years
2017 2018 2019 2020 2021 2022
City's proportion of the net pension liability 0.043% 0.047% 0.052% 0.053% 0.054% 0.057%
City's proportionate share of the net pension liability/(asset) $ 558,745 $ 615,682 $ 705,235 $ 600,864 $ 516,344 $ 488,565
City's covered payroll $ 3,554,612 $ 4,005,795 $ 4,594,877 $ 5,012,865 $ 5,207,144 $ 5,567,306
City's proportionate share of the net pension liability/(asset)as a
percentage of its covered payroll 15.7% 15.4% 15.3% 12.0% 9.9% 8.8%
Plan fiduciary net position as a percentage of the total pension
liability 16.7% 17.5% 17.0% 24.5% 32.8% 39.4%
(1) The City implemented GASB 75 beginning in 2018. Information prior to 2017 is not available.
*The amounts presented for each year were determined as of December 31,the measurement date used by the Ciry.
113
CITY OF LONE TREE
SCHEDULE OF CONTRIBUTIONS
STATE FIRE AND POLICE PENSION PLAN(FPPA)
Last Eight Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022
Contractuallyrequiredcontributions $ 266,647 $ 275,158 $ 276,557 $ 314,225 $ 317,519 $ 355,665 $ 365,287 $ 371,111 $ 420,559
Contributions in relation to the contractually required
conhibution (266,647) (275,158) (276,557) (314,225) (317,519) (355,665) (365,287) (371,111) (420,559)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ -
City'scoveredpayroll $ 3,458,225 $ 3,689,690 $ 3,624,431 $ 3,976,381 $ 4,026,218 $ 4,329,357 $ 4,594,732 $ 5,158,747 $ 5,156,748
Contributions as a percentage of covered payroll 7.71% 7.46% 7.63°/ 7.90% 7.89°/ 8.22% 7.95°/ 7.19% 8.16°/
(1) The City implemented GASB 68 beginning in 2015. Information prior to 2014 is not available.
114
CITY OF LONE TREE
SCHEDULE OF CONTRIBUTIONS
PUBLIC RETIREMENT ASSOCIATION OF COLORADO(PERA)
Last Eight Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022
Contractually required conhibutions $ 392,338 $ 418,841 $ 466,528 $ 487,686 * $ 555,896 * $ 609,512 * $ 658,542 * $ 714,780 * $ 832,929 *
Contributions in relarion to the contrachxally required
contribution (392,338) (418,841) (466,528) (487,686) (555,896) (609,512) (658,542) (714,780) (832,929)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Ciry's covered payroll $ 3,017,148 $ 3,348,942 $ 3,554,612 $ 4,005,795 $ 4,594,877 $ 5,012,865 $ 5,207,144 $5,567,306 $ 6,162,544
Contributions as a percentage of covered payroll 13.00% 12.51% 13.12% 12.17% 12.10% 1216% 12.65% 12.84% 13.52%
(1) The City implemented GASB 68 beginning in 2015. Information prior to 2014 is not available.
*Due to the implementation of GASB 75 in 2018,2017-2022 conh-ibutions are separated behveen PERA and OPEB
115
CITY OF LONE TREE
SCHEDULE OF CONTRIBUTIONS
PUBLIC RETIREMENT ASSOCIATION OF COLORADO OTHER POSTEMPLOYMENT BENEFITS(OPEB)
Last Seven Fiscal Years
2016 2017 2018 2019 2020 2021 2022
Contractually required contributions $ 34,709 $ 39,230 * $ 44,717 * $ 49,030 * $ 51,232 * $ 56,401 * $ 63,031 *
Contributions in relation to the contractually required
contribution (34,709) (39,230) (44,717) (49,030) (51,232) (56,401) (63,031)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ -
City's covered payroll $ 3,554,612 $ 4,005,795 $ 4,594,877 $ 5,012,865 $ 5,207,144 $ 5,567,306 $ 6,162,544
Contributions as a percentage of covered payroll 0.98% 0.98% 0.97% 0.98% 0.98% 1.01% 1.02%
(1) The City implemented GASB 75 beginning in 20L8. Information prior to 2016 is not available.
*Due to the implementation of GASB 75 in 2018,2017-2021 contributions are separated between PERA and OPEB
116
CITY OF LONE TREE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2022
NOTE 1 - BUDGETS
Pursuant to State law, budgets for the General and Special Revenue Funds are adopted on a basis
consistent with generally accepted accounting principles (GAAP). The City's General Fund and
Special Revenue Fund — Cultural and Community Services prepare annual budgets that are
legally adopted.
NOTE 2 —PENSION PLAN PROVISIONS
FPPA
Changes in Plan Provisions
The plan provisions have not changed since the prior valuation.
Changes of Assumptions
There were no changes in actuarial assumptions since the January 1, 2020 valuation.
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in the FPPA's
comprehensive annual report which can be obtained at: http://www.f�paco.or�/annual-
reports.html.
PERA
Changes in Plan Provisions
• The following changes reflect the anticipated adjustments resulting from the 2020
automatic adjustment provision (AAP) assessment, statutorily recognized July 1, 2021,
and effective July 1, 2022:
o Member contribution rates increased by 0.50%.
o Employer contribution rates increased by 0.50%.
o Annual Increase (AI) cap is lowered from 1.25%per year to 1.00%per year.
Changes of Assumptions
• The assumption used to value the AI cap benefit provision was changed from 1.25% to
1.00%.
Pension Plan Fiduciary Net Position
Detailed information about the LGDTF's fiduciary net position is available in PERA's
comprehensive annual financial report which can be obtained at:
www.copera.or�/investments/pera-financial-reports.
117
CITY OF LONE TREE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2022
NOTE 2—PENSION PLAN PROVISIONS (CONTINUED)
OPEB
Changes in Plan Provisions
The plan provisions have not changed since the prior valuation.
Changes of Assumptions
There were no changes made to the actuarial methods or assumptions.
Pension plan fiduciary net position
Detailed information about the LGDTF's fiduciary net position is available in PERA's
comprehensive annual financial report which can be obtained at:
www.copera.org/investments/pera-financial-reports.
118
THIS PAGE LEFT BLANK INTENTIONALLY
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
OTHER GOVERNMENTAL FUNDS
AND
COMPONENT UNITS
CITY OF LONE TREE
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
December 31,2022
Debt Debt Special
Service- Service- Revenue- Total
Arts and Park and Lone Tree Other
Cultural Recreation Art Center Governmental
Facilities Improvements Fund 501(c)(3) Funds
ASSETS
Cash and Investments-Restricted $ 2,367,219 $ 2,503,629 $ 71,707 $ 4,942,555
Receivables:
Sales,Use,Admissions and Lodging Taxes 284,995 189,997 - 474,992
Other - - 2,050 2,050
TOTAL ASSETS $ 2,652,214 $ 2,693,626 $ 73,757 $ 5,419,597
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable $ - $ - $ 68,169 $ 68,169
Unearned Revenue - - 1,500 1,500
Total Liabilities - - 69,669 69,669
FUND BALANCES
Restricted 2,652,214 2,693,626 - 5,345,840
Committed - - 4,088 4,088
Total Fund Balances 2,652,214 2,693,626 4,088 5,349,928
TOTAL LIABILITIES AND FUND BALANCES $ 2,652,214 $ 2,693,626 $ 73,757 $ 5,419,597
119
CITY OF LONE TREE
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
Year Ended December 31,2022
Debt Debt Special
Service- Service- Revenue- Total
Arts and Park and Lone Tree Other
Cultural Recreation Art Center Governmental
Facilities Improvements Fund 501(c)(3) Funds
REVENUES
Taxes $ 2,305,973 $ 1,537,243 $ - $ 3,843,216
Net Investment Income 41,749 40,032 - 81,781
Arts and Cultural - - 68,169 68,169
Total Revenues 2,347,722 1,577,275 68,169 3,993,166
EXPENDITURES
Current
Arts and Cultural Services - - 72,063 72,063
Debt Service
Bond Interest 127,800 105,500 - 233,300
Bond Principal 1,600,000 1,020,000 - 2,620,000
Paying Agent Fees 400 400 - 800
Total Expenditures 1,728,200 1,125,900 72,063 2,926,163
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 619,522 451,375 (3,894) 1,067,003
OTHER FINANCING SOURCES(USES)
Transfers In/(Out) (39,221) - - (39,221)
Total Other Financing Sources(Uses) (39,221) - - (39,221)
NET CHANGE IN FUND BALANCES 580,301 451,375 (3,894) 1,027,782
FUND BALANCES-
BEGINNING OF YEAR 2,071,913 2,242,251 7,982 4,322,146
FUND BALANCES-
END OF YEAR $ 2,652,214 $ 2,693,626 $ 4,088 $ 5,349,928
120
CITY OF LONE TREE
DEBT SERVICE FUND-ARTS AND CULTURAL FACILITIES
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget Budget
Amounts Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Sales Tax $ 1,885,985 $ 1,885,985 $ 2,159,436 $ 273,451
Use Tax-Retail 53,000 53,000 68,840 15,840
Use Tax-Building Materials 95,000 95,000 77,697 (17,303)
Net Investment Income 1,400 1,400 41,749 40,349
Total Revenues 2,035,385 2,035,385 2,347,722 312,337
EXPENDITURES
Bond Interest 127,800 127,800 127,800 -
Bond Principal 1,600,000 1,600,000 1,600,000 -
Paying Agent Fees 600 600 400 200
Contingency 4,500 4,500 - 4,500
Total Expenditures 1,732,900 1,732,900 1,728,200 4,700
EXCESS OF REVENUES OVER
EXPENDITURES 302,485 302,485 619,522 317,037
OTHER FINANCING SOURCES (USES)
Transfers In/(Out) (75,000) (75,000) (39,221) 35,779
Total OtherFinancing Sources(Uses) (75,000) (75,000) (39,221) 35,779
NET CHANGE IN FUND BALANCES 227,485 227,485 580,301 352,816
FUND BALANCES-BEGINNING OF YEAR 1,861,658 2,071,913 2,071,913 -
FUND BALANCES-END OF YEAR $ 2,089,143 $ 2,299,398 $ 2,652,214 $ 352,816
121
CITY OF LONE TREE
DEBT SERVICE FUND-PARK AND RECREATION IMPROVEMENTS
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget Budget
Amounts Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Sales Tax $ 1,257,424 $ 1,257,423 $ 1,439,623 $ 182,200
Use Tax-Retail 35,000 35,000 45,893 10,893
Use Tax-Building Materials 63,000 63,000 51,727 (11,273)
Net Investment Income 1,400 1,400 40,032 38,632
Total Revenues 1,356,824 1,356,823 1,577,275 220,452
EXPENDITURES
Bond Interest 105,500 105,500 105,500 -
Bond Principal 1,020,000 1,020,000 1,020,000 -
Paying Agent Fees 600 600 400 200
Contingency 2,500 2,500 - 2,500
Total Expenditures 1,128,600 1,128,600 1,125,900 2,700
EXCESS OF REVENUES OVER
EXPENDITURES 228,224 228,223 451,375 223,152
OTHER FINANCING SOURCES (USES)
Transfers In/(Out) (500,000) (750,000) - 750,000
Total Other Financing Sources (Uses) (500,000) (750,000) - 750,000
NET CHANGE IN FUND BALANCES (271,776) (521,777) 451,375 973,152
FUND BALANCES -BEGINNING OF YEAR 2,102,472 2,242,251 2,242,251 -
FUND BALANCES -END OF YEAR $ 1,830,696 $ 1,720,474 $ 2,693,626 $ 973,152
122
CITY OF LONE TREE
SPECIAL REVENUE FUND-LONE TREE ARTS CENTER FUND 501(c)(3)
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget
Amounts
Original
and Actual Variance with
Final Amounts Final Budget
REVENUES
Individual Gifts $ 24,000 $ 18,230 $ (5,770)
Corparate Gifts 13,500 21,464 7,964
Foundation Gifts 35,000 27,500 (7,500)
Matching Corparate Gifts - 975 975
Total Revenues 72,500 68,169 (4,331)
EXPENDITURES
Accounting Services 1,250 1,356 (106)
Office Supplies 2,294 130 2,164
Meeting Expenses 750 2,408 (1,658)
LTAC Grant Award 72,500 68,169 4,331
Total Expenditures 76,794 72,063 4,731
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (4,294) (3,894) 400
NET CHANGE IN FUND BALANCES (4,294) (3,894) 400
FUND BALANCES-BEGINNING OF YEAR 7,982 7,982 -
FUND BALANCES-END OF YEAR $ 3,688 $ 4,088 $ 400
123
CITY OF LONE TREE
PARK MEADOWS BUSINESS IMPROVEMENT DISTRICT
COMBINING BALANCE SHEET
December 31, 2022
Total
Debt Component
General Service Unit
ASSETS
Cash and Investments $ 7,163,071 $ - $ 7,163,071
Cash and Investments - Restricted 246,800 1,029,578 1,276,378
Receivables:
Intergovernmental 1,646,843 - 1,646,843
Prepaid Items 85,583 - 85,583
TOTAL ASSETS $ 9,142,297 $ 1,029,578 $ 10,171,875
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable $ 152,768 $ - $ 152,768
Total Liabilities 152,768 - 152,768
FUND BALANCES
Nonspendable:
Prepaid Amounts 85,583 - 85,583
Restricted for:
Emergencies (TABOR) 246,800 - 246,800
Debt Service - 1,029,578 1,029,578
Assigned to:
Grant Expenditures 3,052,427 - 3,052,427
Unassigned 5,604,719 - 5,604,719
Total Fund Balances 8,989,529 1,029,578 10,019,107
TOTAL LIABILITIES AND FUND BALANCES $ 9,142,297 $ 1,029,578 $ 10,171,875
124
CITY OF LONE TREE
RECONCILIATION OF THE BALANCE SHEET - PARK MEADOWS BUSINESS
IMPROVEMENT DISTRICT COMPONENT UNIT
TO THE STATEMENT OF NET POSITION
December 31, 2022
Amounts reported for component unit activities in the statement of net position are different because:
Total fund balances -Park Meadows Business Improvement District component unit $ 10,019,107
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the funds. 25,024,005
Noncurrent liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
Loans Payable (8,575,641)
Leases Payable (12,604,030)
Accrued Interest on Loans Payable (22,868)
Cost of Debt Refinancing 85,549
Net position of Park Meadows Business Improvement District component unit activities $ 13,926,122
125
CITY OF LONE TREE
PARK MEADOWS BUSINESS IMPROVEMENT DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year Ended December 31, 2022
Total
Debt Component
General Service Unit
REVENUES
Intergovernmental Revenue $ 8,208,983 $ - $ 8,208,983
Net Investment Income 15,106 - 15,106
Reimbursed Expenditures 80,357 - 80,357
Grant Income 3,052,427 - 3,052,427
Total Revenues 11,356,873 - 11,356,873
EXPENDITURES
Current
Operations and Maintenance 2,162,856 - 2,162,856
Lease 650,727 - 650,727
Property Repairs and Replacements 491,381 - 491,381
Marketing 393,289 - 393,289
Property Tax Reimbursement 316,860 - 316,860
Staff and Accounting 150,000 - 150,000
District Management Fee 17,500 - 17,500
Auditing, Legal and Professional Fees 28,414 - 28,414
Off Site Storage 30,000 - 30,000
Other General and Administrative 16,032 - 16,032
Capital Projects 915,895 - 915,895
Debt Service
Loan Interest - 272,411 272,411
Loan Principal - 816,985 816,985
Total Expenditures 5,172,954 1,089,396 6,262,350
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,183,919 (1,089,396) 5,094,523
OTHER FINANCING SOURCES (USES)
Transfers In/(Out) (1,001,505) 1,001,505 -
Total Other Financing Sources (Uses) (1,001,505) 1,001,505 -
NET CHANGE IN FUND BALANCES 5,182,414 (87,891) 5,094,523
FUND BALANCES -BEGINNING OF YEAR 3,807,115 1,117,469 4,924,584
FUND BALANCES -END OF YEAR $ 8,989,529 $ 1,029,578 $ 10,019,107
126
CITY OF LONE TREE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF THE PARK MEADOWS
BUSINESS IMPROVEMENT DISTRICT COMPONENT UNIT
TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2022
Amounts reported for component unit activities in the statement of
activities are different because:
Net change in fund balances -Park Meadows Business Improvement District component unit $ 5,094,523
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital Outlay 963,881
Depreciation and Amortization Expense (1,294,393)
Amounts reported for governmental activities in the statement of activities are
different because:
The issuance of long-term debt(e.g. bonds)provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however,has any effect on net position. Also, governmental funds
report the effect of issuance costs,premiums, discounts, and similar items when debt
is first issued, whereas these amounts are deferred and amortized in
the statement of activities.
Loan Principal 816,985
Lease Payment 640,988
Some revenues and expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported as expenditures
in the governmental funds.
Amortization of Cost of Refunding (18,964)
Accrued Interest on Debt- Change in Liability 2,179
Changes in net position of Park Meadows Business Improvement District component unit
activities $ 6,205,199
127
CITY OF LONE TREE
PARK MEADOWS BUSINESS IMPROVEMENT DISTRICT
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget Budget
Amounts Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental Revenue $ 5,125,804 $ 5,125,804 $ 8,208,983 $ 3,083,179
Net Inveshnent Income 20,000 20,000 15,106 (4,894)
Other 18,540 18,540 3,132,784 3,114,244
Total Revenues 5,164,344 5,164,344 11,356,873 6,192,529
EXPENDITURES
OperationsandMaintenance 1,844,000 1,844,000 2,162,856 (318,856)
Lease 651,689 651,689 650,727 962
Properry Repairs and Replacements 171,000 511,000 491,381 19,619
Marketing 306,500 306,500 393,289 (86,789)
Properry Tax Reimbursement 313,804 313,804 316,860 (3,056)
Staff and Accounring 157,000 157,000 150,000 7,000
District Management Fee 30,000 30,000 17,500 12,500
Auditing,Legal and Professional Fees 20,700 20,700 28,414 (7,714)
Off Site Storage 30,000 30,000 30,000 -
Other General and Administrative 22,000 22,000 16,032 5,968
Capita]Projects 377,000 2,861,800 915,895 1,945,905
Contingency 150,000 150,000 - 150,000
Tota]Expenditures 4,073,693 6,898,493 5,172,954 1,725,539
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 1,090,651 (1,734,149) 6,183,919 7,918,068
OTHER FINANCING SOURCES(USES)
Transfers In/(Out) (1,089,392) (1,089,392) (1,001,505) 87,887
Total Other Financing Sources(Uses) (1,089,392) (1,089,392) (1,001,505) 87,887
NET CHANGE IN FUND BALANCES 1,259 (2,823,541) 5,182,414 8,005,955
FUND BALANCES-BEGINNING OF YEAR 5,201,137 5,201,137 3,807,115 (1,394,022)
FUND BALANCES-END OF YEAR $ 5,202,396 $ 2,377,596 $ 8,989,529 $ 6,611,933
128
CITY OF LONE TREE
PARK MEADOWS BUSINESS IMPROVEMENT DISTRICT
DEBT SERVICE FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Original
and
Final
Budget Actual Variance with
Amounts Amounts Final Budget
REVENUES
Net Investment Income $ - $ - $ -
Total Revenues - - -
EXPENDITURES
Loan Interest 272,411 272,411 -
Loan Principal 816,985 816,985 -
Total Expenditures 1,089,396 1,089,396 -
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (1,089,396) (1,089,396) -
OTHER FINANCING SOURCES(USES)
Transfers In - - -
Transfers Out 1,089,396 1,001,505 (87,891)
Total Other Financing Sources(Uses) 1,089,396 1,001,505 (87,891)
NET CHANGE IN FUND BALANCES - (87,891) (87,891)
FUND BALANCES-BEGINNING
OF YEAR 1,097,189 1,117,469 20,280
FUND BALANCES-END OF YEAR $ 1,097,189 $ 1,029,578 $ (67,611)
129
CITY OF LONE TREE
LONE TREE BUSINESS IMPROVEMENT DISTRICT
BALANCESHEET
December 31,2022
Total
Capital Governmental
General Projects Funds
ASSETS
Cash and Investments $ 146,291 $ 217,751 $ 364,042
Receivables:
Intergovernmental 1,639 - 1,639
Properry Tax 257,278 - 257,278
Accrued Interest Receivable 551 - 551
TOTAL ASSETS $ 405,759 $ 217,751 $ 623,510
LIABILITIES,DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES
Accounts Payable $ 21,777 $ - $ 21,777
Total Liabilities 21,777 - 21,777
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-Property Taxes 257,278 - 257,278
FUND BALANCES
Nonspendable:
Prepaid Items 551 - 551
Restricted for:
Emergencies (TABOR) 7,610 - 7,610
Assigned for:
Capital Projects - 217,751 217,751
Unassigned ll 8,543 - ]18,543
Total Fund Balances 126,704 217,751 344,455
TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES $ 405,759 $ 217,751 $ 623,510
130
CITY OF LONE TREE
RECONCILIATION OF THE BALANCE SHEET - LONE TREE BUSINESS
IMPROVEMENT DISTRICT COMPONENT UNIT
TO THE STATEMENT OF NET POSITION
December 31, 2022
Amounts reported for component unit activities in the statement of net position are different because:
Total fund balances - Lone Tree Business Improvement District component unit $ 344,455
Other long-term assets are not current financial resources available to pay
current
period expenditures and, therefore, are not reported in the funds.
Property Tax Receivable 257,278
Deferred inflows of resources that represent acquisition or consumption
of net position that applies to future periods and, therefore, are not reported
Property Tax Revenues (257,278)
Net position of Lone Tree Business Improvement District component unit activities $ 344,455
131
CITY OF LONE TREE
LONE TREE BUSINESS IMPROVEMENT DISTRICT
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31,2022
Total
Capital Governmental
General Projects Funds
REVENUES
General Property Tax $ 218,000 $ - $ 218,000
Specific Ownership Taxes 22,842 - 22,842
Interest Income (939) 59 (880)
Total Revenues 239,903 59 239,962
EXPENDITURES
Insurance 3,665 - 3,665
Legal 10,865 - 10,865
Office Overhead 929 - 929
Accounting 10,141 - 10,141
Auditing 4,935 - 4,935
Landscaping Services 59,155 - 59,155
Snow Plow Services 147,080 - 147,080
Treasurer's Fees 3,269 - 3,269
Plaza and Lighting Maintenance 13,500 - 13,500
Plaza and Lighting Upgrades - 33,474 33,474
Total Expenditures 253,539 33,474 287,013
EXCESS OF REVENUES OVER
EXPENDITURES (13,636) (33,415) (47,051)
OTHER FINANCING SOURCES(USES)
Transfers In 72,000 - 72,000
Transfers Out - (72,000) (72,000)
Total Other Financing Sources(Uses) 72,000 (72,000) -
NET CHANGE IN FUND BALANCES 58,364 (105,415) (47,OS1)
FUND BALANCES-BEGINNING OF YEAR 68,340 323,166 391,506
FUND BALANCES-END OF YEAR $ 126,704 $ 217,751 $ 344,455
132
CITY OF LONE TREE
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES OF THE LONE TREE
BUSINESS IMPROVEMENT DISTRICT TO THE STATEMENT OF ACTIVITIES
Year Ended December 31,2022
Amounts reported for component unit activities in the statement of
activities are different because:
Net change in fund balances -Lone Tree Business Improvement District component unit $ (47,051)
Changes in net position of Lone Tree Business Improvement District component unit activities $ (47,051)
133
CITY OF LONE TREE
LONE TREE BUSINESS IMPROVEMENT DISTRICT
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget Amounts
Original
and Actual Variance with
Final Amounts Final Budget
REVENUES
General Property Tax $ 258,308 $ 218,000 $ (40,308)
Specific Ownership Taxes 20,663 22,842 2,179
Interest Income 10 (939) (949)
Total Revenues 278,981 239,903 (39,078)
EXPENDITURES
Insurance 4,100 3,665 435
Legal 21,500 10,865 10,635
Office Overhead 750 929 (179)
Accounting 18,000 10,141 7,859
Audit 4,600 4,935 (335)
Landscaping Services 84,767 59,155 25,612
Snow Plow Services 141,000 147,080 (6,080)
Treasurer's Fees 3,876 3,269 607
Drainage Pond Cleaning 1,500 - 1,500
Plaza and Lighting Maintenance 12,000 13,500 (1,500)
Total E�penditures 292,093 253,539 38,554
EXCESS OF REVENUES OVER
EXPENDITURES (13,ll 2) (13,636) (524)
OTHER FINANCING SOURCES(USES)
Transfers In - 72,000 72,000
Transfers Out - - -
Total Other Financing Sources(Uses) - 72,000 72,000
NET CHANGE IN FUND BALANCES (13,112) 58,364 71,476
FUND BALANCES-BEGINNING OF YEAR 68,137 68,340 203
FUND BALANCES-END OF YEAR $ 55,025 $ 126,704 $ 71,679
134
CITY OF LONE TREE
LONE TREE BUSINESS IMPROVEMENT DISTRICT
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
Year Ended December 31,2022
Budget
Original
and Actual Variance with
Final Amounts Final Budget
REVENUES
Interest Income $ 50 $ 59 $ 9
Total Revenues 50 59 9
EXPENDTTURES
Landscaping Services 20,000 - 20,000
Plaza&Lighting Upgrades 174,880 33,474 141,406
Total Expenditures 194,880 33,474 161,406
EXCESS OF REVENUES OVER
EXPENDITURES (194,830) (33,415) 161,415
OTHER FINANCING SOURCES(USES)
Transfers In/(Out) - (72,000) (72,000)
Total Other Financing Sources(Uses) - (72,000) (72,000)
NET CHANGE IN FUND BALANCES (194,830) (105,415) 89,415
FUND BALANCES-BEGINNING OF YEAR 234,435 323,166 88,731
FUND BALANCES-END OF YEAR $ 39,605 $ 217,751 $ 178,146
135
THIS PAGE LEFT BLANK INTENTIONALLY
OTHER SUPPLEMENTARY INFORMATION
CITY OF LONE TREE
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31,2022
$4,805,000 Sales and Use $6,200,000 Sales and Use
Tax Revenue Refunding Bonds Series 2017A, Tax Revenue Refunding Bonds Series 2017B,
Dated May 24,2017 Dated May 24,2017
Interest Rate at 2.00%to 5.00°/a Interest Rate at 3.00%to 4.00%
Interest Payable Interest Payable
June 1 and December 1 June 1 and December 1
Principal Due December 1 Principal Due December 1
Principal Interest Principal Interest
2023 1,090,000 54,500 1,720,000 63,800
$ 1,090,000 $ 54,500 $ 1,720,000 $ 63,800
Total
Principal Iuterest Total
2023 2,810,000 118,300 2,928,300
$ 2,810,000 $ 118,300 $ 2,928,300
136
Financial Planning 02/Ol
The public report burden for this information collection is estimated to average 380 hours annually. Form#350-050-36
City or County:
City of Lone Tree
LOCAL HIGHWAY FINANCE REPORT YEAR ENDING:
December 2022
This Information from the Records of The City of Lone Tree: Prepared By: Kenzie Schott
Phone: 720-509-1255
L DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE
A. Local B. Local C. Receipts from D. Receipts from
ITEM Motor-Fuel Motor-Vehicle State Highway- Federal Highway
Taxes Taxes User Taxes Administration
L Total recei ts available
2. Minus amount used for collecrion eapenses
3. Minus amount used for nonhi hwa u oses
4. Minus amount used for mass transit
5. Remam er use or ig way purposes
II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD
AND STREET PURPOSES
ITEM AMOUNT ITEM AMOUNT
A. Receipts from local sources: A. Local highway disbursements:
L Local hi hwa -user taxes 1. Ca ital outla from a e 2 3,037,984
a. Motor Fuel (from Item I.A.S.) 2. Maintenance: 675,783
b. Motor Vehicle from Item LB.S. 3. Road and street services:
c. Total(a.+b.) a. Traffic control operations 732,665
2. General fund a ropriations 4,697,285 b. Snow and ice removal 1,338,750
3. Other local imposts(from page 2) 4,554,233 c. Other
4. Miscellaneous local recei ts from a e 2 342,252 d. Total a.through a 2,071,415
5. Transfers from toll facilities 4. General administration&miscellaneous 0
6. Proceeds of sale of bonds and notes: 5. Hi hwa law enforcement and safet 4,227,927
a. Bonds-Original lssues 6. Total (1 through 5) 10,013,109
b. Bonds-Refundin Issues B. Debt service on local obli ations:
c. Notes 1. Bonds:
d. Total(a.+b.+c. 0 a. Interest
7. Total(1 through 6) 9,593,770 b. Redemption
B. Private Contributions a Total a.+b. 0
C. Receipts from State government 2. Notes:
from a e 2 419,339 a. Interest
D. Receipts from Federal Government b. Redemption
from a e 2 0 a Total a.+b.) 0
E. Total receipts(A.7+B+C+D) 10,013,109 3. Tota (l.c+2.c 0
C. Payments to State for highwa s
D. Payments to toll facilities
E. Total disbursements A. +B, + +D)
IV. LOCAL ffiGHWAY DEBT STATUS
(Show all entries at par)
O enin Debt Amount Issued Redem tions Closin Debt
A. Bonds(Total) 0
l. Bonds Refundin Portion
B. Notes(Total) 0
V. LOCAL ROAD AND STREET FUND BALANCE
A.Beginning Balance B.Total Receipts C.Total Disbursements D.Ending Balance E.Reconciliation
0 10,013,109 10,013,109 0 0
Notes and Comments:
FORM FHWA-536(Rev.1-OS) PREVIOUS EDITIONS OBSOLETE (Next Page)
HUTF 2022
137
STATE:
Colorado
LOCAL HIGHWAY FINANCE REPORT YEAR ENDING(mm/yy):
12/22
IL RECEIPTS FOR ROAD AND STREET PURPOSES-DETAIL
ITEM AMOUNT ITEM AMOUNT
A.3. Other local im osts: A.4. Miscellaneous local recei ts:
a. Pro ert Taxes and Assessments a. Interest on investments
b. Other local im osts: b. Traffic Fines&Penalities 342,252
1. Sales Taxes c.Parkin Gara e Fees
2. Infrastructure&Im act Fees d. Parkin Meter Fees
3. Liens e. Sale of Surplus Propert
4.Licenses £ Char es for Services
5. S ecific Ownershi &/or Other 4,554,233 . Other Misc.Receipts
6. Total 1.throu h 5. 4,554,233 h. Other
c. Total a.+b. 4,554,233 i. Total(a.through h.) 342,252
(Carry forward to page 1) (Carry forward to page 1)
iTEM AMOUNT ITEM AMOUNT
C. Recei ts from State Government D. Recei ts from Federal Government
1. Highwa -user taxes 371,392 1. FHWA from Item I.D.S.
2. State eneral funds 2. Other Federal a=encies:
3. Other State funds: a. Forest Service
a. State bond roceeds b. FEMA
b. Project Match c. HUD
c. Motor Vehicle Re istrations 47,946 d. Federal Transit Admin
d. Other S ecif -DOLA Grant e. U.S. Co s of En ineers
e. Other S ecif £ Other Federal
£ Total a.throu h e. 47,946 . Total a.throu h£ 0
4. Total 1.+2.+3. 419,339 3. Total 1.+2.
(Carry forward to page 1)
III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES-DETAIL
ON NATIONAL OFF NATIONAL
HIGHWAY HIGHWAY TOTAL
SYSTEM SYSTEM
a b c
A.1. Ca ital outla :
a. Ri ht-Of-Wa Costs 0
b. En ineerin Costs 0 0
a Construction:
1 .New Facilities 0
2 . Ca acit Im rovements 2,886,586 2,886,586
3 . S stem Preservation 151,398 151,398
4 . S stem Enhancement&O eration 0
5 . Total Construction 1 + 2 + 3 +(4 0 3,037,984 3,037,984
d. Total Ca ital Outla Lines l.a.+ l.b.+ 1.c.5 0 3,037,984 3,037,984
(Carry forward to pagc 1)
otes an omments:
FORM FHWA-536(Rev1-OS) PREVIOUS EDITIONS OBSOLETE
138
STATISTICAL SECTION
This part of the City's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
supplementary information says about the City's overall financial health. This information has
not been audited by the independent auditor.
Financial Trends
These schedules contain trend information that may assist the reader in understanding how
the City's financial performance and well-being have changed over time.
Net Position by Component (Table 1) .............................................................................140
Changes in Net Position (Table 2)...................................................................................141
Fund Balances, Governmental Funds (Table 3) ..............................................................142
Changes in Fund Balances, Governmental Funds (Table 4)............................................143
Revenue Capacity
These schedules contain information that may assist the reader in assessing the viability of
the City's most significant "own source" revenue source, sales taxes. The City does not
assess a property tax levy; therefore, schedules containing information on principal property
taxpayers or property tax levies and collections are not included.
Direct and Overlapping Sales Tax Rates (Table 5) .........................................................144
Sales Tax Revenue Payers by Industry (Table 6)............................................................145
Sales Tax Revenue Collections (Table 7)........................................................................146
Debt Capacity
These tables present information to help the reader assess the affordability of the City's
current level of outstanding debt and the City's ability to issue additional debt in the future.
Assessed Value and Estimated Actual Value of Taxable Property (Table 8)..................147
Property Tax Rates - Direct and Overlapping Governments (Table 9) ...........................148
Ratios of Outstanding Debt by Type (Table 10)..............................................................149
Revenue Bond Coverage (Table 11 a and b) ...................................................................150
Legal Debt Margin Information (Table 12).....................................................................152
General Obligation Debt - Direct and Overlapping Governments (Table 13).................153
Demographic and Economic Information
These schedules offer demographic and economic indicators that may help the reader
understand the environment within which the City's financial activities take place.
Demographic and Economic Statistics (Table 14)...........................................................154
Principal Employers (Table 15).......................................................................................155
Operating Information
These schedules contain information about the City's operations and resources to help the
reader understand how the City's financial information relates to the services the City
provides and the activities it performs.
Full-time Equivalent City Government Employees by Function/Program (Table 16)....156
Operating Indicators by Function/Program (Table 17)....................................................157
Capital Asset Statistics by Function/Program (Table 18)................................................158
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
financial reports for the relevant year. The City implemented GASB Statement No. 34 in fiscal
year 2003; therefore, schedules presenting government-wide information include information
beginning in that year.
139
TABLE 1
CITY OF LONE TREE
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
zo�s zoia zois�z> zo�b zo» zo�s�s> zo�v zozo zozi zozz
Governmental activities
Net inveshnent in capital assets $ 80,973,ll9 $ 81,283,223 $ 97,829,372 $102,243,231 $108,531,579 $1 ll,992,008 $120,572,452 $140,647,955 $145,232,645 $144,254,915
Restricted 3,662,144 3,370,714 5,202,543 4,762,302 5,416,090 5,852,393 15,365,807 6,392,901 7,816,276 11,083,260
Unrestricted 12,347,203 16,198,831 13,713,236 13,011,264 7,287,522 7,798,676 13,719,165 13,688,093 20,969,941 39,602,739
Total governmental activities net position 96,982,466 100,852,768 116,745,151 120,016,797 121,235,191 125,643,077 149,657,424 160,728,949 174,018,862 194,940,914
Total primary government net position(1) $ 96,982,466 $100,852,768 $116,745,151 $120,016,797 $121,235,191 $125,643,077 $149,657,424 $160,728,949 $174,018,862 $194,940,914
(1) The Ciry does not have any business-type activiries,therefore,the total primary government net position is the same
as the total governmental activities net position.
(2)Net position restated in 2015 due to implementation of GASB Na 68.
(3)Net posirion restated in 2018 due to implementation of GASB No.75.
140
TABLE2
CITY OF LONE TREE
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:
Generalgovernment $ 14,573,133 $ 73,494,009 $ 14,483,424 S 76,173,154 $ 17,071,735 S 16,212,205 $ 72,856,050 S 10,214,431 $ 71,375,639 $ 14,938,838
Municipalcourt 215,894 217,969 234,799 259,849 323,935 374,079 293,408 312,221 296,674 226,058
Communirydevelopment 1,258,759 1,04Q044 1,080,566 1,26Q292 7,313,003 1,250,637 936,466 7,766,136 1,777,995 1,136,047
Public works 7,286,760 7,972,040 8,743,403 8,436,353 8,406,828 10,028,083 10,395,092 10,418,266 11,359,384 14,435,353
Artsandculturalservices 2,691,473 3,111,362 3,198,170 3,239,157 4,138,733 4,08Q1G8 3,427,829 2,535,888 2,935,G63 2,843,509
Police 6,295,772 6,639,856 6,779,310 7,091,270 7,752,422 7,35Q747 8,092,467 8,842,924 8,821,749 8,538,025
Interest and related costs on long-term debt 998,465 924,398 837,f394 777,775 586,505 446,040 358,185 297,241 259,634 213,533
Interest and related costs on leases 137,447
Totalgovernmentalactivitiesexpenses 33,320,256 33,399,678 35,357,566 37,237,850 39,592,561 39,741,959 36,353,496 33,787,104 36,826,738 42,468,810
Totalprimary governmentexpenses(1) $ 33,320,256 $ 33,399,678 $ 35,357,566 $ 37,237,850 $ 39,592,561 $ 39,741,959 $ 36,353,496 $ 33,787,104 $ 36,826,738 $ 42,468,810
Program revenues
Governmental activities:
Charges for services:
Generalgovernment $ 249,904 $ 222,567 $ 239,633 S 179,424 $ 176,438 S 527,238 $ 228,916 $ 174,152 $ 179,049 $ 164,717
Municipal court 648,298 54Q304 691,943 68Q688 636,085 565,302 54,044 37,305 38,319 39,177
Communitydevelopment 1,717,190 2,098,603 1,396,976 1,156,256 832,431 1,321,541 1,215,296 1,364,480 1,493,204 1,580,425
Public works - - - 736 499 21,247 150,570 213,624 385,934 539,577
Arts and culturaL services I,I 15,051 1,329,312 1,284,726 996,884 1,562,983 1,253,940 1,537,972 360,031 368,504 1,251,215
Police 41,845 22,919 3,491 4,453 4,679 7,965 630,875 421,484 848,037 372,779
Operating grantsand contributions 4,152,656 4,252,466 4,728,754 5,050,314 5,000,361 5,574,101 5,918,552 6,619,538 10,437,077 11,165,358
Capital grants and contributions 4,292,034 1,069.622 16,971,208 3,453,329 4,16(,060 4,732,802 2Q427,224 12,238,449 6,406,050 lOQl77
Totalgovemmentalnctivitiesprogram revenues 12,216,978 9,535,793 25,316,731 11,522,084 12,379,536 14,004,136 30,163,449 21,429,064 20,156,174 15,213,425
Totalprimary governmentrevenues(1) $ 12,216,978 $ 9,535,793 $ 25,316,731 $ 11,522,084 $ 12,379,536 $ 14,004,136 $ 30,163,449 $ 21,429,064 $ 20,156,174 $ 15,213,425
Net(expense)revenue
Governmentalactivities $(21,103,278) $(23,863,885) $(1Q04Q835) $(25,715,766) $(27,213,025) $(25,737,823) $ (6,190,048) $(12,358,041) $(16,G7Q564) $(27,255,384)
TotaLprimarygovernmentnet(expense)revenue(I) $(21,103,278) $(23,863,885) $(IQ04Q835) $(25,715,766) $(27,213,025) $(25,737,823) $ (6,190,048) $(12,358,041) $(16,670,564) $(27,255,384)
Generalrevenues
Snles taxes and Use tax-Retail $ 22,275,657 $23,736,964 $ 24,883,632 $ 24,649,096 $ 24,920,993 $ 25,649,105 $ 25,536,584 $ 19,726,510 $ 25,682,661 S 42,181,930
Use taxes-Building materials 1,934,767 1,009,009 1,155,608 791,702 414,263 935,963 770,496 1,320,568 1,299,531 1,727,013
Lodgingtaxes 766,230 908,192 1,000,349 1,048,252 1,092,192 1,823,741 1,736,799 672,449 1,145,417 1,575,329
Admissiontaxes 357,294 503,914 368,432 411,421 363,474 375,613 337,637 176,402 254,286 339,902
Franchisetees 973,986 1,033,993 1,040,429 1,041,604 1,069,729 1,071,791 1,078,819 1,048,271 1,137,127 1,302,889
Cigarettetaxes 202,452 196,839 194,668 197,519 175,349 169,197 153,456 171,392 134,946 91,582
Investmentearnings 19,945 14,113 22,376 140,767 234,364 400,134 431,565 149,251 10,489 671,563
Lease Revenue - - - - - - - - - 45,190
Miscellaneous 443,335 331,163 136,995 707,051 161,055 278,910 159,039 164,723 296,020 242,037
Totalgovernmentalactivities generalrevenues 26,973,666 27,734,187 28,802,489 28,987,412 28,437,419 30,704,454 3Q204,395 23,429,566 29,960,477 48,777,435
Totalprimary governmentgeneraLrevenues(I) $ 26,973,666 S 27,734,187 $ 28,802,489 S 28,987,412 $ 28,431,419 $ 30,704,454 $ 30,204,395 S 23,429,566 $ 29,960,477 S 48,177,435
Change iu net position
Governmental activities $ 5,870,388 $ 3,870,302 $ 18,761,654 $ 3,271,646 $ 1,218,394 $ 4,966,631 $ 24,014,347 $ 11,071,525 $ 13,289,913 $ 20,922,051
Totalprimarygovernmentchangeinnetposition(1) $ 5,87Q388 $ 3,870,302 $ 18,761,654 $ 3,271,646 $ 1,218,394 $ 4,966,631 $ 24,014,347 $ 11,071,525 $ 13,289,913 $ 20,922,051
(1) The Ciry does not have any business-rype activities,therefore,the totals for primary governmeut are the same as the totaLs for government activities
141
TABLE 3
CITY OF LONE TREE
FUND BALANCES,GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2013 2014 2015(l) 2016 2017 2018(2) 2019 2020 2021 2022
General Fund
Non-spendable $ 252,530 $ 401,104 $ 380,189 � 514,737 $ 406,279 S 167,676 $ 162,809 $ 151,718 $ 71,015 $ 270,208
Restricted 3,248,713 2,892,348 4,928,216 7,844,007 8,343,148 2,631,785 11,908,748 2,826,718 3,500,112 5,737,420
Committed - - - - - - - - - -
Assigned 7,062,731 10,860,234 12,489,445 11,966,918 6,913,804 9,291,989 13,558,108 12,523,975 20,214,429 14,278,327
Unassigned 3,883,361 3,722,646 4,273,000 4,398,000 4,545,000 4,822,000 4,978,000 6,451,000 5,821,300 26,649,553
Total General Fund S 14,447,335 � 17,876,332 $ 22,070,850 $ 24,723,662 S 20,208,231 S 16,913,450 $ 30,607,666 S 21,953,41 I $ 29,606,856 $ 46,935,SOA
All other governmental funds
Non-spendable $ 43,230 $ 46,674 $ 56,673 $ 53,659 $ 110,727 $ 81,303 $ 106,025 $ 21,215 $ 86,8ll $ ll6,668
Restricted 2,273,653 2,409,455 2,103,679 2,429,178 3,053,775 3,220,608 3,457,059 3,566,183 4,316,164 5,345,840
Committed - - - - - 105 206,486 146,219 225,267 800,638
Assigned - - - - - 8,775 - - - -
Unassigned,reported in:
Specialrevenue funds (43,230) (46,674) (56,673) (53,659) (110,727) (127,578)
Total all other govemmental fu�ds $ 2,273,653 $ 2,409,455 $ 2,103,679 $ 2,429,178 $ 3,053,775 $ 3,183,213 $ 3,769,570 $ 3,733,617 $ 4,628,242 $ 6,263,146
Total govemmental fu�ds
Non-spendable $ 295,760 $ 447,778 $ 436,862 $ 568,396 $ 517,006 $ 248,979 $ 268,834 $ 172,933 $ 157,826 $ 386,876
Restricted 5,522,366 5,301,803 7,031,895 10,273,185 ll,396,923 5,852,393 15,365,807 6,392,901 7,816,276 11,083,260
Committed - - - - - 105 206,486 146,219 225,267 800,638
Assigned 7,062,731 10,860,234 12,489,445 11,966,918 6,913,804 9,300,764 13,558,108 12,523,975 20,214,429 14,278,327
Unassigned 3,840,131 3,675,972 4,216,327 4,344,341 4,434,273 4,694,422 4,978,000 6,451,000 5,821,300 26,649,553
Total govemmental fu�ds $ 16,720,988 $ 20,285,787 $ 24,174,529 $ 27,152,840 $ 23,262,006 $ 20,096,663 $ 34,377,236 $ 25,687,028 $ 34,235,098 $ 53,198,654
(1)The City implemented GASB Statement No.68 in fiscal year 2015.
(2)The City implemented GASB Statement No.75 in fiscal year 2018.
142
TABLE 4
CITY OF LONE TREE
CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accmal basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes $ 25,333,948 $ 26,158,079 $ 27,408,021 $ 26,900,471 $ 26,790,921 $ 28,784,422 $ 28,381,516 $ 21,895,929 $ 28,381,895 $ 45,824,175
Franchise fees 973,986 1,033,993 1,040,429 1,041,604 1,069,729 1,071,791 1,078,819 1,048,271 1,137,127 1,302,889
Intergovemmental 7,317,985 5,066,287 7,073,987 15,301,133 14,291,208 10,572,636 25,845,262 7,411,211 11,252,919 10,446,205
Licenses,feesand charges 1,743,385 2,124,212 1,430,134 1,134,976 869,837 1,350,836 1,435,736 1,599,964 1,948,433 2,188,240
Fines and forfeitures 648,298 540,304 691,943 680,688 636,085 565,302 672,181 436,363 371,622 393,404
Netinvestmentincome 19,945 14,ll3 22,376 140,767 234,364 400,134 431,565 149,251 10,488 664,997
Tenantrentalincome 249,904 222,567 239,634 179,424 176,438 250,519 228,919 174,152 179,050 164,717
Artsandculturaleventfees 1,369,872 1,639,949 1,747,181 1,519,316 2,128,189 1,922,982 2,216,130 1,248,891 2,353,958 2,039,737
Other 1,490,317 401,910 205,953 839,181 285,663 452,654 307,314 359,538 588,503 382,912
Base rentals 951,972 1,009,664 1,290,006 - - - - - - -
Totalrevenues 40,099,612 38,211,078 41,149,664 47,737,560 46,482,434 45,371,276 60,597,442 34,323,570 46,223,995 63,407,276
Expenditures
General government 4,838,096 5,001,832 4,706,785 4,932,276 5,493,850 5,591,215 5,647,331 4,575,637 4,529,647 5,051,387
Municipal court 210,387 213,810 192,197 226,495 270,686 302,995 309,063 299,755 294,898 309,076
Community development 1,222,386 1,025,520 1,020,830 1,181,680 1,ll 5,634 1,018,069 1,000,326 1,098,689 1,143,417 1,305,370
Police 6,142,980 6,483,386 6,697,266 6,918,837 7,176,874 7,523,559 8,216,629 8,603,650 8,506,326 9,395,393
Publicworks 3,959,687 4,417,190 4,473,031 4,325,451 4,ll2,818 4,841,201 4,737,463 5,278,695 5,570,247 6,876,849
Arts and cultural services 2,087,722 2,496,989 2,544,481 2,451,342 3,111,466 2,958,530 3,000,630 1,866,950 2,392,480 2,900,385
Debt service
Bondprincipal 2,340,000 2,520,000 2,920,000 1,755,000 1,890,000 2,030,000 492,600 422,500 340,100 233,300
Bondinterest 980,328 924,083 866,475 805,432 447,661 581,850 2,180,000 2,285,000 2,435,000 2,620,000
Paying agent fees 400 400 400 400 800 1,200 1,000 800 800 800
Cost of issuance - - - - 158,935 - - - - -
Capital outlay and other 16,220,698 11,563,069 13,839,457 22,162,335 26,495,277 23,688,000 20,731,828 18,582,104 12,463,010 15,758,238
Totalexpenditures 38,002,684 34,646,279 37,260,922 44,759,248 50,274,001 48,536,619 46,316,869 43,013,779 37,675,925 44,450,798
Excess ofrevenues over(under)expenditures 2,096,928 3,564,799 3,888,742 2,978,312 (3,791,567) (3,165,343) 14,280,573 (8,690,209) 8,548,070 18,956,478
Other fi�a�cing sources(uses)
Bond payment to refunded bonds escrow agent - - - - (12,381,772) - - - - -
Revenue bondsissued - - - - 11,005,000 - - - - -
Bond premium - - - - 1,277,505 - - - - -
Transfers in 1,743,279 2,ll7,873 1,868,506 1,263,381 983,277 1,741,098 1,720,549 489,327 1,663,425 1,503,097
Transfers out Q,743,279) (2,117,873) Q,868,506) Q,263,381) (983,277) Q,741,098) Q,720,549) (489,327) (1,663,425) Q,503,097)
Lease Inception - - - - - - - - - 7,078
Total other financing sources(uses) (99,267) 7,078
Net change in fund balances $ 2,096,928 $ 3,564,799 $ 3,888,742 $ 2,978,312 $ (3,890,835) $ (3,165,343) $ 14,280,574 $ (8,690,209) $ 8,548,070 $ 18,963,556
Debt service as a%ofnoncapital expenditures 10.4% 10.8% 212% 7.0% 5.9% 6.4% 8.0% 14.6% 9.6% 7.1%
143
TABLE 5
CITY OF LONE TREE
DIRECT AND OVERLAPPING SALES TAX RATES
Last Ten Fiscal Years
Scientific Total
City Regional and Cultural Sales
Fiscal Direct Douglas State of Transportation Facilities Tax
Year Rate(1) County Colorado District District Rate
2013 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2014 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2015 1.8125°/a 1.00°/a 2.90% 1.00°/a 0.l0% 6.8125%
2016 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2017 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2018 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2�19 1.812$% 1.��% 2.9�% 1.��% �.1�% 6.8125%
2020 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2021 1.8125% 1.00% 2.90% 1.00% 0.10% 6.8125%
2022 2.8125% 1.00% 2.90% 1.00% 0.10% 7.8125%
(1) An increase in the City's sales tax rate may be changed only with the approval of Ciry voters. Pursuant to election results from November
2021,a sales tax increase of 1%was effective as of January 1,2022.
Source: Ciry Budget Office and Douglas Counry Department of Finance.
144
TABLE 6
CITY OF LONE TREE
SALES TAX REVENUE PAYERS BY INDUSTRY(1)
Fiscal Year 2022
Tax Percentage
Industry Liability of Total
Retail $ 39,230,399 93.00%
Services 1,484,900 3.51%
Government 1,043 0.01%
Finance, insurance and real estate 151,726 0.36%
Transportarion and uriliries 1,313,863 3.11%
Total $ 42,181,930 100.00%
(1) Due to confidentiality issues,the names of the ten largest sales tax revenue payers are not
available. The categories presented are intended to provide alternative infarmation regarding
the sources of the City's sales tax revenue.
Source: City Sales Tax Department
145
TABLE 7
CITY OF LONE TREE
SALES TAX REVENUE COLLECTIONS
Last Ten Fiscal Years
Sales
Tax
Revenue
Fiscal Year Collections
2013 22,275,657
2014 23,736,964
2015 24,883,632
2016 24,649,096
2017 24,920,993
2018 25,649,105
2019 25,536,584
2020 19,726,510
2021 25,682,661
2022 42,181,930
146
TABLE 8
CITY OF LONE TREE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Collection Assessed Value Actual
LevY�'ear(1) Year Residential Commercial Other Personal Total Value(2)
2012 2013 138,412,900 255,941,730 14,018,510 40,277,100 448,650,240 2,669,739,949
2013 2014 147,664,450 283,865,750 19,112,447 45,720,117 496,362,764 2,931,188,630
2014 2015 155,833,800 309,658,840 20,493,300 54,399,760 540,385,700 3,131,131,975
2015 2016 188,966,170 379,839,260 18,558,910 64,355,840 651,720,180 3,783,743,011
2016 2017 195,142,240 376,546,220 16,546,590 63,227,760 651,462,810 3,840,344,430
2017 2018 205,189,400 427,144,090 22,154,660 62,070,460 716,558,610 4,432,701,543
2018 2019 241,702,730 490,445,000 17,314,590 67,813,980 817,276,300 5,195,739,181
2019 2020 245,996,550 490,611,300 14,807,010 65,541,430 816,956,320 5,249,030,422
2020 2021 267,517,020 530,192,300 14,193,440 60,030,370 871,933,130 5,687,392,940
2021 2022 261,156,120 550,801,440 18,557,240 68,639,510 899,154,310 5,799,198,128
(1) The City of Lone Tree does not currently levy a property tax. Voter authorization would be required in order to levy a property tax in the future.
(2) Actual value is not intended to represent market value.
Source: Douglas County Assessor's Office
147
TABLE 9
CITY OF LONE TREE
PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
(Per$1,000 of Assessed Value)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City of Lone Tree 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Overlapping Mill Levies(1):
Cherry Creek Basin Water Authority 0.500 0.500 0.449 0.473 0.453 0.479 0.451 0.478 0.479 0.5
Douglas County 19.774 19.774 19.774 19.274 19.774 19.774 19.274 19.274 18.524 18.524
Douglas County Library District 4.029 4.032 4.035 4.016 4.021 4.008 4.023 4.012 4.021 4.008
Douglas County School District No.Re 1 45.063 46.051 46.945 45.564 30.942 36.896 35.785 35.450 35.743 36.136
Douglas County School District No.Re 1 Bonds 0.000 0.000 0.000 0.000 0.000 8.054 8.054 8.054 8.054 6.700
Douglas County Soil Conservation District 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Heritage Hills Metropolitan District 40.000 40.000 39.544 39.000 40.000 40.000 40.000 40.000 40.000 41137
Park Meadows Metropolitan District 6.387 6387 6.387 6387 6.387 6.387 6.387 6387 6.387 6.387
Rampart Range Metropolitan District No.1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Rampart Range Metropolitan District No.2 46.000 46.000 46.000 46.000 48.000 48.000 49.000 49.000 49.000 49.368
Rampart Range Metropolitan District No.7 46.000 46.000 46.000 46.000 48.000 48.000 49.000 49.000 49.000 49.368
Regional Transportation District 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
South Metro Fire Rescue 9.444 9.319 9.344 9.250 9.250 9.250 9.250 9.250 9.319 9.288
South Suburban Park and Recreation District 6915 8.808 8.651 8.643 8.496 8.364 8.365 8.385 8.396 8.426
Southeast Public Improvement Metro District 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000
Southgate Sanitation District 0.531 0.551 0.510 0.510 0.465 0.465 0.445 0.465 0.463 0.465
Southgate Water District 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Urban Drainage&Flood Control District 0.608 0.632 0.553 0.559 0.500 0.726 0.900 0.900 0.900 0.900
Urban Drainage&Flood South Platte 0.064 0.068 0.058 0.061 0.057 0.094 0.097 0100 0.100 0100
227.315 230122 230.250 227.737 218.345 232.497 233.031 232.755 232.386 233.307
(1)Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners.
Source: Douglas County Assessor's Office
148
TABLE 10
CITY OF LONE TREE
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental
Activities
Certificates Sales and Use Total Percentage
Fiscal of Tax Revenue Primary of Personal Per
Year Participation(1) Bonds(2)(3) Government Income Capita
2013 2,295,000 21,735,335 24,030,335 2.60% 1,911
2014 1,290,000 20,195,029 21,485,029 2.22% 1,681
2015 - 18,541,137 18,541,137 1.86% 1,449
2016 - 16,763,889 16,763,889 1.57% 1,248
2017 - 15,506,168 15,506,168 1.44% 1,119
2018 - 13,223,326 13,223,326 1.17% 945
2019 - 10,790,484 10,790,484 0.86% 719
2020 - 8,263,023 8,263,023 0.64% 551
2021 - 5,632,386 5,632,386 0.43% 375
2022 - 2,878,133 2,878,133 0.21% 192
(1) In 2007,the Building Authority(included as a blended component unit of the City)issued Certificates of
Participation. These were paid off in 2014.
(2) In 2008,the City issued Sales and Use Tax Revcnue Bonds far park and recrearion improvements.In 2017,a portion
of these bonds were refunded as 2017A.
(3) In 2009,the City issued Sales and Use Tax Revenue Bonds for arts and cultural improvements. In 2017,a portion
of these bonds were refunded as 2017B.
149
TABLE lla
CITY OF LONE TREE
REVENUE BOND COVERAGE
PARK AND RECREATION IMPROVEMENT BONDS
Last Ten Fiscal Years
Direct Net Revenue
Fiscal Gross Operating Available for Debt Service Requirements
Year Revenue(1) Expenses Debt Service Principal Interest(2) Total Coverage
2013 $ 1,084,382 $ 200 $ 1,084,182 $ 555,000 $ 443,800 $ 998,800 109%
2014 $ 1,116,010 $ 200 $ 1,ll5,810 $ 600,000 $ 420,213 $ 1,020,213 109%
2015 $ 1,305,096 $ 200 $ 1,304,896 $ 645,000 $ 394,713 $ 1,039,713 126%
2016 $ 1,287,903 $ 200 $ 1,287,703 $ 695,000 $ 365,688 $ 1,060,688 121°/a
2017 $ 1,291,045 $ 400 $ 1,290,645 $ 750,000 $ 179,873 $ 929,873 139°/a
2018 $ 1,381,097 $ 600 $ 1,380,497 $ 805,000 $ 236,850 $ 1,041,850 133°/a
2019 $ 1,391,091 $ 400 $ 1,390,691 $ 855,000 $ 196,600 $ 1,051,600 132°/a
2020 $ 1,157,012 $ 400 $ 1,156,612 $ 900,000 $ 179,500 $ 1,079,500 107°/a
2021 $ 1,457,718 $ 400 $ 1,457,318 $ 940,000 $ 152,500 $ 1,092,500 133%
2022 $ 1,577,275 $ 400 $ 1,576,875 $ 1,020,000 $ 105,500 $ 1,125,500 140%
(1) Sales and use tax revenues derived from the sales and use tax rate increase of 0.125%effective July 1,2008.
This amount also includes investment earnings from those monies as well as investment earnings from the bond proceeds.
(2) Interest per debt service schedule paid to bondholders during calendar year;does not include accrued interest. A portion of these
bonds were refunded in 2017 to reduce the interest rate.
150
TABLE llb
CITY OF LONE TREE
REVENUE BOND COVERAGE
ARTS AND CULTURAL FACILITIES BONDS
Last Ten Fiscal Years
Direct Net Revenue
Fiscal Gross Operating Available for Debt Service Requirements
Year Revenue(1) Expenses Debt Service Principal Interest(2) Total Coverage
2013 $ 1,625,080 $ 200 $ 1,624,880 $ 845,000 $ 524,556 $ 1,369,556 ll9%
2014 $ 1,673,760 $ 200 $ 1,673,560 $ 915,000 $ 499,206 $ 1,414,206 118%
2015 $ 1,957,203 $ 200 $ 1,957,003 $ 985,000 $ 471,756 $ 1,456,756 134°/a
2016 $ 1,929,783 $ 200 $ 1,929,583 $ 1,060,000 $ 439,744 $ 1,499,744 129°/a
2017 $ 1,930,215 $ 400 $ 1,929,815 $ 1,140,000 $ 267,788 $ 1,407,788 137°/a
2018 $ 2,058,731 $ 600 $ 2,058,131 $ 1,225,000 $ 345,000 $ 1,570,000 131°/a
2019 $ 2,066,779 $ 600 $ 2,066,179 $ 1,325,000 $ 296,000 $ 1,621,000 127°/a
2020 $ 1,728,755 $ 400 $ 1,728,355 $ 1,385,000 $ 243,000 $ 1,628,000 106%
2021 $ 2,186,074 $ 400 $ 2,185,674 $ 1,495,000 $ 187,600 $ 1,682,600 130°/a
2022 $ 2,347,722 $ 400 $ 2,347,322 $ 1,600,000 $ 127,800 $ 1,727,800 136%
(1) Sales and use tax revenues derived from the sales and use tax rate increase of 0.1875%effective July 1,2008.
This amount also includes investment earnings from those monies as well as investment earnings from the bond proceeds.
(2) Interest per debt service schedule paid to bondholders during calendar year;does not include accrued interest. A portion of these
bonds were refunded in 2017 to reduce the interest rate.
151
TABLE 12
CITY OF LONE TREE
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Debt limit $ 31,000,000 $ 31,000,000 $ 31,000,000 $ 31,000,000 $ 31,000,000 $ 31,000,000 $ 31,000,000 $ 31,000,000 $31,000,000 $31,000,000
Total net debt applicable to limit $ 27,880,000 $ 27,880,000 $ 27,880,000 $ 27,880,000 $ 27,880,000 $ 27,880,000 $ 27,880,000 $ 27,880,000 $27,880,000 $27,880,000
Legaldebtmargin(1) $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000 $ 3,120,000
Total net debt applicable to the limit as a percentage of debt limit 89.94% 89.94% 89.94°/ 89.94% 89.94°/ 89.94°/ 89.94°/ 89.94% 89.94°/ 89.94%
(1) On May 6,2008,a majority of the qualified electors of the City authorized the issuance of indebtedness in an amount not to exceed$18,500,000
and$12,SOO,OOQ for sales and use tax revenue bonds for funding capital improvements for cultural facilities and park and recreation,respectively.
The voters also authorized a temporary sales and use tax rate increase of.1875%,for arts and cultural facilities and.125%for park and recreation
improvements effective July 1,2008 through December 31,2023 or until the full payment of such debt if occuring earlier.The City issued
$11,000,000 of its authorized debt during 2008 and$16,880,000 of its authorized debt during 2009. The City has no other debt authorization.
In 2017,the City refunded these bonds acquiring a lower interest rate,while maintaining the bond tercns,which resulted in a savings over the
life of the bonds.Pursuant to recommendation from Bond Counsel in 2017 the remaining authorized amounts became stale on December 31,2017
due to the length of time that has passed since the election and the issuance of the bonds.
152
TABLE 13
CITY OF LONE TREE
GENERAL OBLIGATION DEBT-DIRECT AND OVERLAPPING GOVERNMENTS
As of December 31,2022
Outstanding
General Other Long- Percent City's
Obligation Term Debt Applicable Share
Debt Instruments to City* of Debt
Direct:
City of Lone Tree $ - $ 2,878,133 100.00% $ 2,878,133
Overlapping:
Douglas County School District
No.Re 1 332,620,000 - 11.00% 36,597,095
South Suburban Park and Recreation
District 36,485,000 - 23.80% 8,682,480
Total overlapping debt 45,279,574
Total direct and overlapping debt $ 48,157,707
* The percent applicable to the City is calculated using the gross total taxable assessed valuation based on the previous levy year
published by the various County Assessor's Offices.
The following entities also overlap the City,but have no General Obligation Debt outstanding:
Cherry Creek Basin Water Authority
Douglas County
Douglas County Public Library District
Douglas County Soil Conservation District
Heritage Hills Metropolitan District
Park Meadows Metropolitan District
Rampart Range Metropolitan District No. 1
Rampart Range Metropolitan District No. 2
Rampart Range Metropolitan District No. 7
Regional Transportation District
Southeast Public Improvement Metropolitan District
Southgate Sanitation District
Southgate Water District
South Metro Fire Rescue District
Urban Drainage and Flood Control District
Urban Drainage and Flood South Platte
Sources: Assessor's Office far the following Counties: Douglas,Araphoe,Jefferson and Denver, as well as information
obtained from individual entities.
153
TABLE 14
CITY OF LONE TREE
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
Douglas
Per Capita County
Estimated Personal Personal Unemployment
Calendar Year Population Income Income [1] Rate
2013 12,572 923,614,552 73,466 5.60%
2014 12,779 966,054,063 75,597 4.50°/a
2015 12,800 995,699,200 77,789 2.60°/a
2016 13,431 1,066,730,313 79,423 2.80°/a
2017 13,860 1,078,793,100 77,835 2.60°/a
2018 14,000 1,133,272,000 80,948 3.40°/a
2019 15,000 1,250,640,000 83,376 2.80°/a
2020 15,000 1,300,665,000 86,7ll 6.30%
2021 15,000 1,313,670,000 87,578 5.20°/a
2022 15,000 1,355,115,000 90,341 2.30°/a
[1] Bureau of Economic Analysis, Washington D.C. (13-22 adjusted finals)
Source: Douglas County Department of Finance
154
TABLE 15
CITY OF LONE TREE
PRINCIPAL EMPLOYERS(1)
Current Year and Ten Years Ago
2022 2013
Employer Employees Rank Employees Rank
Douglas County School District 8,500 1 5,863 1
Charles Schwab 3,450 2
DISH Network 2,500 3
Centura Health 1,970 4
Healthone: Sky Ridge Medical 1,470 5 1,170 4
Douglas County Government 1,453 6 1,061 6
Kiewit Companies 1,400 7
VISA Debit Processing Services 1,180 8
Lockheed Martin Corporation 1,010 9
Specialized Loan Servicing LLC 820 10
Western Union - 1,140 5
Centura: Parker Adventist Hospital - 980 7
AVAYA - 650 10
Information Handling Services - 810 9
CH2M Hill - 1,980 2
Ecostar Communications - 1,960 3
The Trizetto Group - 900 8
(1) Selected major employers within Douglas County. Total employment within the City is not available.
Source:Douglas County Department of Finance
155
TABLE 16
CITY OF LONE TREE
FULL-TIME EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full-Time Equivalent Employees(2)
Function/Program(1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General government 17.50 17.75 18.00 19.75 23.38 22.38 22.50 22.50 22.63 23.88
Municipal court 2 2.00 2.00 2.50 2.50 3.00 3.00 3.00 3.00 3.00
Community development 7.00 6.00 7.00 7.00 8.00 8.00 8.00 10.00 10.00 10.00
Arts&Cultural 13.75 18.00 19.50 20.50 21.50 22.25 22.25 23.00 22.00 22.00
Police 54 56.50 56.50 58.50 60.00 59.50 62.50 62.50 64.25 66.25
Public Warks - - - 1.00 1.00 6.00 9.00 11.00 11.00 10.00
Total 94.25 100.25 103.00 109.25 116.38 121.13 127.25 132.00 132.88 135.13
(1) The City contracts out its legal department. The figures above do not include services provided by these contracted parties.
(2) A full-rime employee is scheduled to work 2,080 hours per year (including vacarion and sick leave). Full-rime equivalent employment is calculated by dividing total
labor hours by 2,080.
Source: City Finance Department
156
TABLE 17
CITY OF LONE TREE
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program(1) 2013 2014 2015 2016 2017 2018 2019 2020(2) 2021 2022
Municipal court
Number of court cases 1,922 1,577 3,094 2,307 1,913 1,748 1,432 887 917 919
Community development
Building permits issued 809 804 872 770 750 720 806 711 726 700
Building inspections conducted 7,662 7,115 5,475 5,329 5,720 4,691 4,279 4,169 4,721 4,869
Public warks
Streets overlayed(miles) 15.81 6.26 6.23 8.25 7.90 14.97 7.43 - 1091 9.40
Public safety
Accidents 1,169 1,787 1,443 1,255 1,160 1,058 846 520 650 692
Citations issued 4,234 4,136 5,079 5,115 4,135 4,674 4,497 2,143 1,188 2,173
(1) No operating indicators are available for the general government or capital outlay.
(2) Decrease in operating indicators far 2020 is mainly attributable to the COVID-19 pandemic.
Source: Various City departments
157
TABLE 18
CITY OF LONE TREE
CAPITAL ASSET STAT[STICS BY FUNCT[ON/PROGRAM
Last Ten Fiscal Years
FuncHon/Program(l) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public works
Streets(miles) 148.51 157.88 160.76 160.76 160.76 160.76 161.1 161.1 161.1 161.1
Traffic signals 45 47 48 48 49 50 53 54 53 53
Public safety
Stations 2 2 2 2 2 2 2 2 2 2
Patrol units 22 22 20 23 21 21 21 21 21 24
Capital outlay
Storm drainage(miles) 39.93 41.18 41.80 43.12 43.12 43.36 43.36 43.36 43.36 43.36
(1) No capital indicators are available for the general government,municipal court or community development.
Source: Various Ciry departments
158