monday, june 24, 2019 6:00 pm 0((7,1*/2&$7,21 512 cherry

MONDAY, JUNE 24, 20196:00 PM

MEETING LOCATION:

512 CHERRY STREET DACONO, CO 80514Roll Call

Pledge Of Allegiance

Presentation Of Donation To The Carbon Valley Help Center

Public Comments On Issues Not Scheduled On Agenda

Consent Agenda

Minutes Of The June 10, 2019 Regular Meeting.

V-A MIN JUNE 10, 2019.PDF

Accounts Payable Dated June 24, 2019 In The Amount Of $100,446.73

V-B ACCOUNTS PAYABLE JUNE 24 2019.PDF

Acknowledging Receipt Of The May 2019 Financials

V-C MAY FINANCIAL STATEMENTS.PDF

Approval Of Resolution 19-61, Approving A Third Amendment To The Agreement

Between The City Of Dacono And SAFEBuilt Colorado, LLC For Building Department Services

V-D RES 19-61 SAFEBUILT AGREEMENT THIRD AMENDMENT.PDF

General Business

2018 Audit Presentation

VI-A 2018 AUDIT PRESENTATION.PDF

Consideration And Approval Of Ordinance 870, Adopting By Reference The 2010 Model Traffic Code, On First Reading

VI-B MODEL TRAFFIC CODE.PDF

Consideration And Approval Of Ordinance 871, Amending Chapter 16 Of The Dacono Municipal Code Regarding Parking Of Certain Vehicles On City Streets And Roadways, On First Reading

VI-C. ORDINANCE NO 871 AMENDING CHAPTER 16 PARKING OF CERTAIN VEHICLES ROADWAYS.PDF

Consideration And Approval Of Ordinance 872, Granting A Non-Exclusive Franchise By The City Of Dacono, Colorado To Black Hills Colorado Gas, Inc., D/B/A Black Hills Energy, Its Successors And Assigns, Of The Right To Use The Streets Within The City To Furnish,

Sell, Transmit, Transport, And Distribute Gas Within And Through The Present And Future Corporate Limits Of Said City Of Dacono, Weld County, Colorado, Granting The Right To Acquire, Construct, Install, Locate, Maintain, Operate And Extend Into, Within And Through The City All Facilities Reasonably Necessary To Furnish, Sell And Distribute

Said Gas To The City Of Dacono And The Inhabitants Thereof, Fixing The Terms And Conditions Thereof, And Repealing Ordinance Nos. 283, 703 And 847, On First Reading

VI-D ORD 872 BLACK HILLS ENERGY FRANCHISE AGREEMENT FIRST READING.PDF

Staff Reports

Council MembersRobin Dunlap Bobby Mauck

Debbie Nasta Kevin Plain

Jackie Thomas Kathryn Wittman

Mayor Joe Baker

Adjournment

I.

II.

III.

IV.

V.

V.A.

Documents:

V.B.

Documents:

V.C.

Documents:

V.D.

Documents:

VI.

VI.A.

Documents:

VI.B.

Documents:

VI.C.

Documents:

VI.D.

Documents:

VII.

VIII.

IX.

MONDAY, JUNE 24, 20196:00 PM

MEETING LOCATION:

512 CHERRY STREET DACONO, CO 80514Roll Call

Pledge Of Allegiance

Presentation Of Donation To The Carbon Valley Help Center

Public Comments On Issues Not Scheduled On Agenda

Consent Agenda

Minutes Of The June 10, 2019 Regular Meeting.

V-A MIN JUNE 10, 2019.PDF

Accounts Payable Dated June 24, 2019 In The Amount Of $100,446.73

V-B ACCOUNTS PAYABLE JUNE 24 2019.PDF

Acknowledging Receipt Of The May 2019 Financials

V-C MAY FINANCIAL STATEMENTS.PDF

Approval Of Resolution 19-61, Approving A Third Amendment To The Agreement

Between The City Of Dacono And SAFEBuilt Colorado, LLC For Building Department Services

V-D RES 19-61 SAFEBUILT AGREEMENT THIRD AMENDMENT.PDF

General Business

2018 Audit Presentation

VI-A 2018 AUDIT PRESENTATION.PDF

Consideration And Approval Of Ordinance 870, Adopting By Reference The 2010 Model Traffic Code, On First Reading

VI-B MODEL TRAFFIC CODE.PDF

Consideration And Approval Of Ordinance 871, Amending Chapter 16 Of The Dacono Municipal Code Regarding Parking Of Certain Vehicles On City Streets And Roadways, On First Reading

VI-C. ORDINANCE NO 871 AMENDING CHAPTER 16 PARKING OF CERTAIN VEHICLES ROADWAYS.PDF

Consideration And Approval Of Ordinance 872, Granting A Non-Exclusive Franchise By The City Of Dacono, Colorado To Black Hills Colorado Gas, Inc., D/B/A Black Hills Energy, Its Successors And Assigns, Of The Right To Use The Streets Within The City To Furnish,

Sell, Transmit, Transport, And Distribute Gas Within And Through The Present And Future Corporate Limits Of Said City Of Dacono, Weld County, Colorado, Granting The Right To Acquire, Construct, Install, Locate, Maintain, Operate And Extend Into, Within And Through The City All Facilities Reasonably Necessary To Furnish, Sell And Distribute

Said Gas To The City Of Dacono And The Inhabitants Thereof, Fixing The Terms And Conditions Thereof, And Repealing Ordinance Nos. 283, 703 And 847, On First Reading

VI-D ORD 872 BLACK HILLS ENERGY FRANCHISE AGREEMENT FIRST READING.PDF

Staff Reports

Council MembersRobin Dunlap Bobby Mauck

Debbie Nasta Kevin Plain

Jackie Thomas Kathryn Wittman

Mayor Joe Baker

Adjournment

I.

II.

III.

IV.

V.

V.A.

Documents:

V.B.

Documents:

V.C.

Documents:

V.D.

Documents:

VI.

VI.A.

Documents:

VI.B.

Documents:

VI.C.

Documents:

VI.D.

Documents:

VII.

VIII.

IX.

https://www.cityofdacono.com/4d84db2b-c081-4151-9f7d-a90feee511d7

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City of Dacono City Council Meeting Minutes

Monday, June 10, 2019 Members Present Joe Baker, Mayor Robin Dunlap Debbie Nasta Kevin Plain Jackie Thomas Kathryn Wittman Members Absent Bobby Mauck, excused Staff Present AJ Euckert, City Manager Valerie Taylor, City Clerk Jennifer Krieger, Community Development Director Kathleen Kelly, City Attorney Brian Skaggs, Chief of Police Introduction of Merrie Leach Garner, Emergency Management Coordinator

Chief Skaggs introduced Merrie Leach Garner to City Council.

Public Comment on Issues Not Scheduled on Agenda (Any documents presented to City Council at the meeting will be kept in the City Clerk’s office and will be available for viewing.)

Stan Owens stated that the meals that are served are open to anyone, today they gave out over 100 meals.

Consent Agenda a. Minutes of the May 13, 2019 Regular Meeting. b. Accounts Payable dated June 10, 2019 in the amount of $435,286.64. c. Acknowledging receipt of the April 2019 Financials. d. Approval of Resolution 19-54, granting probationary acceptance of the public improvements for

Sweetgrass Filing 1E. e. Approval of Resolution 19-55, granting probationary acceptance of the public improvements for

Longs Peak Business Center, LLC. f. Approval of Resolution 19-56, granting final acceptance of the public improvements for Garage

Unitz Phase III. g. Approval of Resolution 19-57, granting final acceptance of the public improvements for

Montgomery Electric. h. Approval of Resolution 19-59, regarding Water Rights Dedication. i. Approval of Resolution 19-60, approving a Professional Service Agreement with ProCode.

Council Member Plain moved to approve the consent agenda as presented. The vote was unanimous with Mayor Baker declaring the motion carried.

General Business Public hearing and approval of Ordinance 869, amending Chapter 16 of the Dacono Municipal Code regarding uses in the C-R Commercial-Residential Zone District, on second reading. Mayor Baker opened the public hearing. Jennifer Krieger, Community Development Director presented her report. With no further comments Mayor Baker closed the public hearing.

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Council Member Wittman moved to approve Ordinance 869, amending Chapter 16 of the Dacono Municipal Code regarding uses in the C-R Commercial-Residential Zone District, on second reading. The vote was unanimous with Mayor Baker declaring the motion carried. Public hearing and approval of Resolution 19-58, approving a Final Plat and a Subdivision Agreement for Sweetgrass Filing 5. Mayor Baker opened the public hearing. Susan Wade, with Redland, 1500 West Canal Court, Littleton, CO, 80120 was sworn in by City Clerk, Valerie Taylor and gave a brief presentation and was available for questions. Jennifer Krieger, Community Development Director asked that the following be entered into the record: Staff Report dated June 10, 2019, the Dacono Municipal Code, the application and all supporting documents; she then presented her report. With no further comments Mayor Baker closed the public hearing. Council Member Nasta moved to approve Resolution 19-58, approving a Final Plat and a Subdivision Agreement for Sweetgrass Filing 5. The vote was unanimous with Mayor Baker declaring the motion carried. Staff Reports AJ Euckert – He stated the splash pad is finally open. The Police Department now has a Facebook page. After the next council meeting there will be a meet and greet with the St. Vrain Valley School District Board. Carbon Valley Music Festival donations have increased to the highest they have ever been. The City Wide Garage Sale took place on Saturday. Planning Commission will meet tomorrow. The CML Conference is next week. Friday, June 21st the Summer Splash event will be held at the Splash Pad. The first Music and Movie event will be Saturday, June 22. Jordan Eichem – not present. Jennifer Krieger – no report. Brian Skaggs – no report. Kathleen Kelly – no report. Valerie Taylor – She solicited volunteers for the festival. Jon Rabas – not present. Kelly Stroh – not present. Council Members Jackie Thomas – no report. Joe Baker – He stated that Kevin will be gone after a few meetings, and asked council to think about who would like to fill the mayor pro-tem seat. Robin Dunlap – no report. Bobby Mauck– not present. Debbie Nasta – She stated she is looking forward to the CML Conference. Kevin Plain – no report. Kathryn Wittman – no report. Adjournment: With no further business to be discussed the meeting was adjourned at 6:39pm. Approved this 24th day of June, 2019.

______________________________ Joe Baker, Mayor Attest: ________________________________ Valerie Taylor, City Clerk

*

Paid

VENDOR NAME DESCRIPTION AMOUNT

4 RIVERS EQUIPMENT Bucket for Backhoe 200.00$

A.J. EUCKERT CML Per-Diem 73.00$ *

ACE HARDWARE OF FIRESTONE Irrigation Repairs, Centennial Field Electrical, PW Supplies, Park Maintenance 141.38$

AIRGAS USA, LLC Hard Hats - PW 163.15$

ALEX ARELLANO Overpayment on PD Citation 40.00$ *

ASTRELLA LAW, P.C. Professional Services 54.10$

AVALANCHE MAPPING GIS Mapping 1,200.00$

BAKER, JOE CML Per-Diem, Mileage 193.64$ *

BLACK HILLS ENERGY Service Fees - CH, PD, PW 254.81$

CANON SOLUTIONS AMERICA, INC. PD and CH Copier Maintenance 178.71$

CARBON VALLEY HELP CENTER Cash Donations - Cleanout Month 479.00$

CENTENNIAL PRINTING Business Cards-Coffee with the Mayor 44.10$

CINTAS First Aid Refill - PD, PW, CH and Sharps Containers 233.13$

COLORADO ANALYTICAL LAB, INC Random Sampling and Drinking Water Testing 715.00$

CPS DISTRIBUTORS, INC Irrigation Supplies 211.79$

DATAPROSE Bills, Inserts, Postage 1,392.14$

DCM PROPERTIES LLC Improvement Guaranty Refund 10,047.54$

EWING AUTO PARTS Oil and Filter Change - PW 63.54$

FARMERS RESERVOIR & IRRIGATION COMPANY Permit Grand View Bridge 500.00$

FASTENAL Safety Glasses - PW 84.70$

H&E EQUIPMENT EXCHANGE Trench Rental - Centennial Field 565.25$

HOFFMAN, PARKER, WILSON, & CARBERRY P.C. Urban Renewal Plan Modifications 784.00$

HOME DEPOT CREDIT SERVICES Flowers; Irrigation, PD, and Park Maintenance; Boom Lift - Banners 843.95$

INTERSTATE RENTAL & SALES, INC Skid Rental - Centennial Electrical 898.20$

JACKIE THOMAS CML Per-Diem, Mileage 193.64$ *

JORDAN EICHEM CML Per-Diem, Mileage 193.64$ *

JORDAN EICHEM NISP Meeting 28.54$

KATHRYN WITTMAN CML Per-Diem, Mileage 193.64$ *

L.G. EVERIST, INC. Recycled Asphalt - Centennial Park 2,404.92$

LUCAS, ROSA Interpreter May 2019 100.00$ *

MILLING PAVING & CONCRETE LLC York Street Striping 4,271.00$

NASTA, DEBBIE CML Per-Diem, Mileage 193.64$ *

NATIONAL METER & AUTOMATION INC Meter Materials 2,813.16$

NELSON'S HEATING & A/C INC. Server Room Air Conditioner Work 230.00$

OTT TO PRINT GREEN Printer Toner - PD 158.00$

PINNACOL ASSURANCE Deductible CH, BF, LF 2,090.04$

PRAIRIE MOUNTAIN MEDIA May's Publishing, Facebook Event Ad 726.70$

PUBLIC WORKS 1 Pavement Analysis 6,250.00$

ROBERT MAUCK CML Per Diem 73.00$ *

SAFEBUILT Old School Industries Reviews 525.00$

STEELE, LYNDSEY Hitch for Speed Trailer - PD 100.97$ *

STUDIO SIX Revised Marketing and Branding, Banner and Ad Design, EDAD, CML Design 27,268.00$

SUNBELT RENTALS, INC. Pump Rental Veterans Memorial Park 100.58$

TANYA GALLEGOS Building Bond Release 2,000.00$

THE TALLENT COMPANY Public Relations Services 2,000.00$

THE TREE FARM Replacement Plants - CH 69.50$

TRANSWEST TRUCK Turbo Clamp 2009 Dump Truck 23.09$

TYLO ELECTRIC, INC. Power to Centennial Field 7,535.00$

UMB BANK NA Bond Payment Administration 600.00$

VALERIE TAYLOR CMCA Classes in Bennett 65.54$

WASTE CONNECTIONS OF COLO, INC May PW, CH, 4-Plex, Residential Service Fee 20,878.00$

TOTAL CHECKS 100,446.73$

City of Dacono

Bills for Approval

June 24, 2019

Page 1 of 1

Consent Agenda Item No: V-c Meeting Date: June 24, 2019 Subject: Unaudited May 2019 financial statements and balance sheets for all funds. Background: As part of the City’s continuing efforts to refine financial controls and minimize risk, the monthly financials are to be presented to Council for review during regular Council meetings. If at any time Council has a question of the validity or accuracy of any item presented on the financial statements that should be brought to the attention of the City Manager and/or Finance Director. May Highlights Revenue Total revenue collected across all fund was $1,540,112. The property tax collected in May represents the amount collected by the county in April; $707,874. To date, 71.5% of property tax has been collected for the year. The City collected $194,616 in total sales tax which was divided between the General, Street, and Capital Equipment Funds for the month of April as well. Use tax collected was $47,729 and is also split three ways like sales tax. There were eleven new home permits purchased in May. Developer reimbursements were high again due to the number of projects in review currently; $27,389 was charged back to the developers to recover expenses paid by the City in May. Water sales revenue was $103,563 in May. The City’s water consumption was about 20.3 million gallons; this does not include hydrant meter usage which will be calculated at the end of the

quarter. Twelve new homes were certified for water taps in May; this brought in $12,000 in tap fees. Street fund revenue included $109,055 in sales and use tax, and $14,834 in highway user tax from the state. $90,180 was collected in property tax for the bond payment. The Capital Equipment Fund’s share of sales and use tax in May was $24,235. The Impact Fee Fund received $66,770 in impact fees for the eleven new home permits pulled in May. The EDAD fund received $64,038 in tax increment financing revenue for the month of May. Expenses Total expenses paid across all funds was $770,747.

• In the General Fund – The facilities maintenance line item went over the yearly budget because of the electrical power outage that occurred in City Hall. The total spent in that line item was $5,660, mostly because of that event.

• In the General Fund – Studio Six continues to work with the City to market the Carbon Valley Music Festival, t-shirts were designed and the City prepaid for the bounce houses. In total, $10,153 was spent preparing for the festival.

• In the General Fund – Vehicle maintenance expenses resulting from insurance claims came to $13,961.

• In the General Fund –The final payment for the roof on the Police Department building was paid for $25,413; the final total for the roof was $36,113.

• In the General Fund – The Veteran’s Memorial costs of $9,095 included engineering fees plus the cost to rent a

loader and a compactor to replace the dirt removed in error by CDOT.

• In the General Fund – The $8000 expense in Parks and Rec Capital Assets is for the permanent power getting installed at Centennial Field.

• In the Water Fund – The Forest Avenue water line tie-in was completed; The project went over the original budget of $22,800, the final cost was $34,382.

• In the Water Fund – The bond payment of $173,514 was paid for the year.

• In the Street Fund – A portable message board was purchased for $16,210.

• In the Street Fund – The $4,650 spent on dust control went to control dust on Holly Street.

• In the Street Fund – The mid-year interest payment for the street bonds was paid; $17,901.

• In the Capital Equipment Fund – The City paid the last payment on the police SUVs; $34,109.

• In the Conservation Trust Fund – The City covered expenses to maintain the track at the BMX park; $1,579 to rent a compactor for the recycled asphalt, and a roll off container.

AS OF MAY 31, 2019City of Dacono06/19/2019 10:32

gb8501_pg.php/Job No: 50107Page 1 of 17USER: KSTROH

GENERAL FUNDREVENUES & EXPENDITURES

41.66 % Yr Complete For Fiscal Year: 2019 / 5

ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

REVENUES

TAXES

001-310-4001 PROPERTY TAXES 1,918,645 707,874 1,723,735 1,231,709 71.46 %

001-310-4002 SPECIFIC OWNERSHIP 164,869 9,196 160,000 39,267 24.54 %

001-310-4003 SALES TAX 714,920 87,577 743,400 282,975 38.06 %

001-310-4004 OCCUPATIONAL TAXES 900 0 900 0 0.00 %

001-310-4005 USE TAX 209,300 21,478 220,000 106,889 48.59 %

001-310-4006 FRANCHISE TAX 207,192 20,919 220,000 75,341 34.25 %

001-310-4007 ADMISSION TAX 55,822 6,384 70,000 9,670 13.81 %

001-310-4008 CIGARETTE TAX 9,488 699 9,200 3,959 43.04 %

001-310-4009 SEVERANCE TAX 58,446 0 55,000 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL TAXES 3,339,582 854,128 3,202,235 1,749,812 54.64 %

LICENSES & PERMITS

001-320-4101 BUSINESS LICENSE 27,268 1,575 24,000 24,275 101.15 %

001-320-4102 PET LICENSE 500 75 800 255 31.88 %

001-320-4103 LIQUOR LICENSES 1,049 279 1,850 926 50.07 %

001-320-4104 ENCROACHMENT LICENSE 350,000 0 0 1,488,945 0.00 %

001-320-4201 BUILDING PERMITS 208,082 26,765 210,000 126,898 60.43 %

001-320-4202 MISCELLANEOUS PERMITS 365 550 300 625 208.33 %

001-320-4301 OCCUPANCY CERTIFICATES 10,875 1,375 12,500 5,375 43.00 %

001-320-4302 PLAN REVIEW 44,278 3,929 46,000 31,046 67.49 %

001-320-4303 REINSPECTION FEES 100 0 0 180 0.00 %

001-320-4304 LICENSE AND PERMIT PENALTIES 3,561 1,257 2,000 2,762 138.09 %

------------ ------------ ------------ ------------ -----------

TOTAL LICENSES & PERMITS 646,077 35,805 297,450 1,681,286 565.23 %

FINES & FORFEITURES

001-330-4401 MUNICIPAL COURT FINES 85,747 10,115 78,000 40,958 52.51 %

001-330-4402 MUNICIPAL COURT COSTS 1,845 305 2,000 1,200 60.00 %

001-330-4403 MUNICIPAL SURCHARGE 14,027 0 10,000 3,598 35.98 %

001-330-4404 JAIL EXPENSE 1,324 0 500 110 22.00 %

001-330-4405 COMMUNITY SERVICE FEE 350 0 350 145 41.43 %

001-330-4406 IMPOUND FEES 1,500 300 1,300 550 42.31 %

001-330-4407 JEF-JUDICIAL/POLICE EDUCATION FEES 8,559 0 7,200 1,616 22.44 %

------------ ------------ ------------ ------------ -----------

TOTAL FINES & FORFEITURES 113,353 10,720 99,350 48,177 48.49 %

OTHER INCOME

001-370-4501 GENERAL GOVERNMENT 26,697 5,970 20,000 19,435 97.17 %

001-370-4502 LEASE INCOME 13,970 1,202 14,385 5,975 41.54 %

001-370-4503 LIEN FEES/CODE ENFORCEMENT 18,535 2,694 15,000 5,296 35.31 %

001-370-4505 O&G OPERATIONS 0 0 540,000 150,000 27.78 %

001-370-4506 ROYALTIES 31,475 0 35,000 110 0.31 %

001-370-4507 DEVELOPER REIMBURSEMENTS 171,188 27,389 150,000 145,870 97.25 %

001-370-4520 INTEREST/DIVIDEND INCOME 52,319 7,299 55,000 33,894 61.63 %

001-370-4521 PROCEEDS FROM SALE OF ASSETS 5,000 0 0 0 0.00 %

001-370-4522 PROCEEDS FROM INSURANCE CLAIMS 49,119 0 0 1,446 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL OTHER INCOME 368,302 44,554 829,385 362,025 43.65 %

DONATIONS AND GRANTS





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

001-380-4601 PD UNIFORM GRANT 0 1,725 0 1,725 0.00 %

001-380-4602 PD GRANTS 29,125 500 28,000 3,975 14.20 %

001-380-4801 SRO Contributions - Weld Re-8 25,714 0 66,000 0 0.00 %

001-380-4902 CITY DONATIONS 46,450 0 25,000 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL DONATIONS AND GRANTS 101,288 2,225 119,000 5,700 4.79 %

OTHER FINANCING SOURCES

001-390-4003 TRANSFER OUT - EDAD FUND (187,576) 0 (108,000) (77,000) 71.30 %

------------ ------------ ------------ ------------ -----------

TOTAL OTHER FINANCING SOURCES (187,576) 0 (108,000) (77,000) 71.30 %

------------ ------------ ------------ ------------ -----------

TOTAL GENERAL FUND REVENUES 4,381,026 947,432 4,439,420 3,769,999 84.92 %

============ ============ ============ ============ ===========

EXPENDITURES

LEGISLATIVE

PERSONNEL COST

001-411-5001 COUNCIL SALARIES 4,450 375 4,675 1,875 40.11 %

001-411-5004 FICA TAXES 340 29 360 143 39.85 %

001-411-5012 WORKER COMPENSATION INSURANCE 296 0 270 230 85.19 %

OPERATING COSTS

001-411-5101 SUPPLIES 1,538 189 2,300 1,164 50.63 %

001-411-5102 POSTAGE 1,599 26 2,200 1,077 48.95 %

001-411-5103 INFORMATION TECHNOLOGY 75,481 0 0 0 0.00 %

001-411-5104 CITY HALL PHONES 1,260 0 0 0 0.00 %

001-411-5106 DUES AND SUBSCRIPTIONS 14,064 26 16,000 8,439 52.74 %

001-411-5107 MEETINGS 1,815 7 2,000 1,057 52.83 %

001-411-5108 TRAINING AND SEMINARS 3,982 0 5,000 1,240 24.80 %

001-411-5109 TRAVEL 4,823 145 6,000 3,305 55.08 %

001-411-5110 PROFESSIONAL SERVICES 132,611 18,290 195,000 65,238 33.46 %

001-411-5111 CITY INSURANCE 23,560 0 22,000 20,694 94.06 %

001-411-5112 PUBLISHING 2,472 1,116 3,500 1,335 38.14 %

001-411-5113 AUDITING 8,632 3,800 10,000 5,700 57.00 %

001-411-5114 ORDINANCE CODIFICATION 3,433 0 3,500 2,366 67.61 %

001-411-5195 OTHER EXPENSES 900 204 1,000 343 34.33 %

BUILDING AND MAINTENANCE

001-411-5201 CITY HALL UTILITIES 3,374 287 5,000 2,206 44.12 %

001-411-5203 CITY HALL WATER 687 0 900 0 0.00 %

001-411-5207 FACILITIES MAINTENANCE 18,284 5,660 5,000 11,327 226.54 %

001-411-5220 FURNITURE AND FIXTURES 392 0 2,000 1,016 50.80 %

001-411-5221 FACILITIES EXPANSION/Remodel 43,759 140 0 10,498 0.00 %

001-411-5223 CAPITAL ASSETS 32,436 0 0 0 0.00 %

COMMUNITY RELATIONS

001-411-5301 CITY FLAGS 3,681 0 2,000 58 2.92 %

001-411-5303 COMMUNITY AWARENESS 14,683 872 18,400 2,173 11.81 %

001-411-5304 ENVIRONMENTAL 11,588 1,980 12,000 5,939 49.49 %

001-411-5305 SUMMER FESTIVAL 109,526 10,153 125,000 66,496 53.20 %

001-411-5306 SPECIAL EVENTS 60,553 2,349 61,000 18,801 30.82 %

001-411-5307 CHARITABLE DONATIONS 26,800 0 21,000 16,400 78.10 %

001-411-5308 AWARDS AND GIFTS 4,509 115 8,000 1,489 18.61 %





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

------------ ------------ ------------ ------------ -----------

TOTAL LEGISLATIVE 611,531 45,763 534,105 250,610 46.92 %

MUNICIPAL COURT

PERSONNEL COSTS

001-412-5001 SALARIES 25,507 1,951 25,000 11,425 45.70 %

001-412-5004 FICA TAXES 1,641 133 1,915 791 41.30 %

001-412-5005 UNEMPLOYMENT INSURANCE 74 6 75 34 45.71 %

001-412-5007 EMPLOYEE BENEFITS 6,891 622 6,375 3,109 48.77 %


001-412-5015 HEALTH REIMBURSEMENT ACCOUNT 4 0 0 0 0.00 %

OPERATING COSTS

001-412-5101 SUPPLIES 356 8 625 8 1.21 %

001-412-5106 DUES AND SUBSCRIPTIONS 44 0 30 0 0.00 %

001-412-5108 TRAINING AND SEMINARS 0 0 750 50 6.60 %

001-412-5111 COMMUNITY SERVICE INSURANCE 73 0 75 0 0.00 %

001-412-5116 WEARING APPAREL 0 0 300 0 0.00 %

001-412-5119 OUTSOURCED CONTRACTS 13,250 1,600 20,000 5,450 27.25 %

001-412-5137 JAIL EXPENSES 1,314 55 1,000 275 27.47 %

001-412-5138 TRIAL EXPENSES 0 0 500 0 0.00 %


------------ ------------ ------------ ------------ -----------

TOTAL MUNICIPAL COURT 49,193 4,374 56,680 21,171 37.35 %

BUILDING AND PLANNING

PERSONNEL COSTS

001-413-5001 SALARIES 150,370 11,541 155,070 63,475 40.93 %

001-413-5002 OVERTIME WAGES 172 39 300 236 78.66 %

001-413-5004 FICA TAXES 11,254 862 11,890 4,754 39.99 %


001-413-5006 EMPLOYEE PENSION 11,696 926 12,430 5,097 41.00 %



001-413-5015 HEALTH REIMBURSEMENT ACCOUNT 1,204 0 0 0 0.00 %

OPERATING COSTS

001-413-5101 SUPPLIES 317 0 1,500 0 0.00 %

001-413-5106 DUES AND SUBSCRIPTIONS 514 0 1,000 45 4.50 %

001-413-5107 MEETINGS 14 0 200 0 0.00 %

001-413-5108 TRAINING AND SEMINARS 915 0 1,300 93 7.13 %

001-413-5109 TRAVEL 0 0 300 0 0.00 %

001-413-5110 PROFESSIONAL SERVICES 138,550 236 210,000 1,202 0.57 %

001-413-5114 ORDINANCE/CODE UPDATES 0 0 500 0 0.00 %

001-413-5119 OUTSOURCED CONTRACTS 227,348 0 230,000 49,611 21.57 %

001-413-5141 COMPREHENSIVE PLAN 3,958 0 0 0 0.00 %

001-413-5142 DEVELOPER COSTS 210,204 27,411 150,000 104,292 69.53 %

001-413-5145 PRINT MATERIALS/MAPS 651 57 500 455 91.05 %

------------ ------------ ------------ ------------ -----------

TOTAL BUILDING AND PLANNING 765,137 41,763 782,355 232,899 29.77 %

ECONOMIC DEVELOPMENT

OPERATING COSTS





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget



001-414-5109 TRAVEL 0 0 2,000 0 0.00 %


001-414-5121 COMMUNITY OUTREACH 26,147 0 10,000 2,400 24.00 %

001-414-5122 MARKETING AND PROMOTIONS 11,382 4,577 34,000 15,083 44.36 %

001-414-5124 ECONOMIC DEV. INCENTIVES (SAL 35,233 0 15,000 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL ECONOMIC DEVELOPMENT 139,748 11,167 158,500 39,315 24.80 %

ADMINISTRATION

PERSONNEL COSTS

001-415-5001 SALARIES 157,821 6,942 94,865 41,065 43.29 %

001-415-5002 OVERTIME WAGES 0 0 200 0 0.00 %

001-415-5004 FICA TAXES 11,899 521 7,260 3,081 42.44 %






OPERATING COSTS

001-415-5101 SUPPLIES 542 0 1,500 359 23.96 %



001-415-5109 TRAVEL 175 57 1,000 122 12.18 %

001-415-5123 ELECTION EXPENSE 4,243 0 4,500 0 0.00 %

001-415-5195 OTHER EXPENSES 90 0 200 0 0.00 %


------------ ------------ ------------ ------------ -----------

TOTAL ADMINISTRATION 204,053 8,773 128,860 52,637 40.85 %

CITY ADMINISTRATOR

PERSONNEL COSTS

001-419-5001 SALARIES 46,424 5,609 75,600 29,869 39.51 %

001-419-5004 FICA TAXES 3,401 422 5,785 2,251 38.90 %






OPERATING COSTS

001-419-5101 SUPPLIES 66 0 200 0 0.00 %

001-419-5106 DUES AND SUBSCRIPTIONS 1,073 50 1,000 50 5.00 %

001-419-5107 MEETINGS 261 24 1,000 57 5.71 %

001-419-5108 TRAINING AND SEMINARS 1,263 0 3,500 900 25.71 %

001-419-5109 TRAVEL 2,382 77 4,000 627 15.68 %

001-419-5195 OTHER EXPENSES 12 0 100 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL CITY ADMINISTRATOR 63,412 7,465 105,780 40,325 38.12 %

POLICE





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

PERSONNEL COSTS

001-421-5001 SALARIES 1,012,780 87,698 1,172,650 466,071 39.75 %

001-421-5002 OVERTIME WAGES 48,569 2,443 58,500 26,277 44.92 %

001-421-5003 SPECIAL DUTY 13,400 1,600 20,000 3,875 19.38 %

001-421-5004 FICA TAXES 25,725 2,263 27,230 12,327 45.27 %

001-421-5005 UNEMPLOYMENT INSURANCE 3,072 275 3,650 1,489 40.79 %

001-421-5006 EMPLOYEE PENSION 85,913 7,883 111,135 41,924 37.72 %

001-421-5007 EMPLOYEE BENEFITS 151,780 14,921 158,330 73,728 46.57 %

001-421-5012 WORKER COMPENSATION INSURANCE 34,476 0 30,000 30,350 101.17 %

001-421-5013 WORKER'S COMP DEDUCTIBLES 361 133 4,000 2,336 58.39 %


OPERATING COSTS

001-421-5101 SUPPLIES 9,402 488 6,500 1,596 24.55 %

001-421-5102 SHIPPING/POSTAGE 1,486 10 1,000 977 97.68 %


001-421-5104 PD PHONES 10,825 0 0 0 0.00 %

001-421-5105 VEHICLE FUEL 23,014 2,576 20,000 7,253 36.26 %

001-421-5106 DUES AND SUBSCRIPTIONS 794 0 1,000 190 19.00 %

001-421-5107 MEETINGS 80 0 600 10 1.67 %

001-421-5108 TRAINING AND SEMINARS 32,225 725 40,000 18,203 45.51 %

001-421-5109 TRAVEL 1,728 1,333 1,800 1,363 75.74 %


001-421-5111 CITY INSURANCE 34,402 0 25,000 24,637 98.55 %

001-421-5116 WEARING APPAREL 19,648 1,060 13,000 5,730 44.08 %

001-421-5134 MEDICAL EXPENSE 4,905 1,216 6,000 2,177 36.28 %

001-421-5195 OTHER EXPENSES 1,076 28 1,000 787 78.74 %


001-421-5201 PD UTILITIES 8,511 691 9,000 3,743 41.59 %

001-421-5203 PD WATER 104 0 200 0 0.00 %

001-421-5205 EQUIPMENT MAINTENANCE 1,257 0 3,500 89 2.54 %

001-421-5206 VEHICLE MAINTENANCE 18,304 14,868 25,000 30,973 123.89 %

001-421-5207 FACILITIES MAINTENANCE 20,788 529 12,000 4,573 38.11 %

001-421-5220 FURNITURE AND FIXTURES 4,818 0 5,000 0 0.00 %

001-421-5221 FACILITIES EXPANSION/Remodel 0 25,413 38,000 36,113 95.04 %

PUBLIC SAFETY/AWARENESS

001-421-5503 CRIME CONTROL 9,500 0 10,000 0 0.00 %

001-421-5506 IMPOUND SERVICES 12,550 2,100 16,000 4,200 26.25 %

001-421-5507 ANIMAL CONTROL 491 94 3,000 158 5.25 %

001-421-5508 CODE ENFORCEMENT 24,283 15 32,000 1,557 4.86 %

001-421-5509 MUNICIPAL SURCHARGE 14,027 0 17,000 3,598 21.16 %

001-421-5511 COMMUNITY PROJECTS 2,630 0 10,000 4,883 48.83 %

001-421-5515 COMMUNICATION 38,407 216 45,000 32,551 72.33 %

001-421-5569 AMMUNITION 3,141 0 5,000 186 3.72 %

001-421-5570 SAFETY EQUIPMENT 23,068 2,814 50,000 17,559 35.12 %

------------ ------------ ------------ ------------ -----------

TOTAL POLICE 1,778,057 173,435 2,071,095 874,248 42.21 %

INFORMATION TECHNOLOGY

OPERATING COSTS

001-430-5110 PROFESSIONAL SERVICES 0 1,936 18,000 8,261 45.89 %

001-430-5125 SOFTWARE/LICENSES 0 2,873 101,020 34,448 34.10 %

001-430-5126 PHONES 0 1,037 12,750 4,326 33.93 %

001-430-5127 DATALINES/INTERNET 0 142 5,950 712 11.96 %





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

001-430-5128 HOSTED APPLICATIONS 0 341 18,925 11,230 59.34 %

001-430-5129 COPIER/PRINTER/FAX/SCANNER 4,102 289 5,500 3,524 64.07 %


001-430-5205 MISCELLANEOUS PROJECTS 0 962 15,000 2,717 18.11 %

001-430-5210 MDTS / CRADLEPOINTS 0 423 10,600 3,949 37.25 %

001-430-5220 HARDWARE 0 964 21,000 2,383 11.35 %

001-430-5223 CAPITAL ASSET / PROJECTS 0 0 8,000 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL INFORMATION TECHNOLOGY 4,102 8,967 216,745 71,549 33.01 %

PARKS AND RECREATION

PERSONNEL COSTS

001-440-5001 SALARIES 10,537 1,068 20,500 5,304 25.87 %

001-440-5002 OVERTIME WAGES 53 39 600 455 75.90 %

001-440-5004 FICA TAXES 740 77 1,615 411 25.44 %


001-440-5006 EMPLOYEE PENSION 824 89 1,690 89 5.24 %



001-440-5013 WORKER'S COMP DEDUCTIBLES 0 0 300 0 0.00 %

MAINTENANCE COSTS

001-440-5201 PARK UTILITIES 3,866 200 3,500 1,121 32.03 %

001-440-5203 PARK WATER 10,567 0 10,900 0 0.00 %

001-440-5205 EQUIPMENT MAINTENANCE 2,591 589 3,000 589 19.63 %

001-440-5208 TRAIL MAINTENANCE 1,755 0 4,500 780 17.33 %

001-440-5209 PARK MAINTENANCE 22,088 971 22,000 2,397 10.89 %

001-440-5215 IRRIGATION SUPPLIES 4,767 201 4,000 242 6.05 %

001-440-5216 PEST CONTROL 2,574 0 12,000 0 0.00 %

001-440-5217 PLANT/TREE REPLACEMENT 4,182 0 4,200 0 0.00 %

001-440-5222 VETERANS MEMORIAL PARK 5,864 9,095 263,000 11,393 4.33 %

001-440-5223 CAPITAL ASSETS 67,878 8,000 65,800 12,046 18.31 %

------------ ------------ ------------ ------------ -----------

TOTAL PARKS AND RECREATION 141,899 20,655 420,195 36,733 8.74 %

------------ ------------ ------------ ------------ -----------

TOTAL GENERAL FUND EXPENDITURE 3,757,133 322,362 4,474,315 1,619,485 36.20 %

============ ============ ============ ============ ===========

------------ ------------ ------------ ------------ -----------

001 GENERAL FUND BALANCE + (-) 623,893 625,070 (34,895) 2,150,515 (6162.82)%

============ ============ ============ ============ ===========



WATER FUNDREVENUES & EXPENDITURES


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

REVENUES

WATER SALES

002-340-4001 BASIC WATER SALES 1,190,010 103,563 1,224,720 414,131 33.81 %

002-340-4002 HYDRANT WATER SALES 54,835 0 20,000 45,392 226.96 %

002-340-4003 PENALTIES 28,747 2,270 30,000 12,960 43.20 %

002-340-4004 CAPITAL IMPROVEMENT FEES 482,673 41,588 490,800 215,597 43.93 %

002-340-4005 MATERIALS SOLD 25,746 2,625 21,000 10,924 52.02 %

002-340-4006 INSTALLATION FEES 11,071 1,263 10,120 5,142 50.81 %

002-340-4007 WATER LEASES 92,750 0 0 0 0.00 %

002-340-4008 WATER SHARES SOLD 765,938 0 315,000 0 0.00 %

------------ ------------ ------------ ------------ ----------

TOTAL WATER SALES 2,651,768 151,308 2,111,640 704,145 33.35 %

OTHER INCOME

002-370-4502 LEASE INCOME 13,970 1,202 14,385 5,975 41.54 %

002-370-4508 CITY TAP FEES 92,500 12,000 80,000 24,000 30.00 %

002-370-4509 TRASH COLLECTION FEES 256,922 20,702 247,000 102,730 41.59 %


------------ ------------ ------------ ------------ ----------


DONATIONS AND GRANTS

------------ ------------ ------------ ------------ ----------

TOTAL DONATIONS AND GRANTS 0 0 0 0 0.00 %


------------ ------------ ------------ ------------ ----------

TOTAL OTHER FINANCING SOURCES 0 0 0 0 0.00 %

GAAP REQUIREMENTS

002-395-4101 DONATED ASSET REVENUE 4,551,527 0 0 0 0.00 %

------------ ------------ ------------ ------------ ----------

TOTAL OF GAAP REQUIREMENTS

------------ ------------ ------------ ------------ ----------

TOTAL WATER FUND REVENUES 7,659,093 196,870 2,553,025 890,410 34.88 %

============ ============ ============ ============ ==========

EXPENDITURES

ADMINISTRATION

PERSONNEL COSTS

002-415-5001 SALARIES 177,660 15,430 207,000 83,910 40.54 %

002-415-5002 OVERTIME WAGES 0 0 200 0 0.00 %

002-415-5004 FICA TAXES 12,891 1,120 15,835 6,109 38.58 %






OPERATING COSTS

002-415-5101 SUPPLIES 2,061 143 1,750 459 26.20 %





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

002-415-5102 POSTAGE 9,472 709 9,000 3,716 41.28 %


002-415-5104 PHONES 1,051 0 0 0 0.00 %



002-415-5109 TRAVEL 51 0 1,000 75 7.46 %


002-415-5111 CITY INSURANCE 3,885 0 3,000 2,730 90.98 %

002-415-5112 PUBLISHING 363 0 310 0 0.00 %

002-415-5113 AUDITING 7,317 3,800 7,415 5,700 76.87 %

002-415-5167 WATER NOTIFICATIONS 11,429 643 7,800 2,575 33.01 %

002-415-5195 OTHER EXPENSES 136 0 500 0 0.00 %


002-415-5201 CITY HALL UTILITIES 2,450 287 3,350 1,216 36.29 %

002-415-5207 FACILITIES MAINTENANCE 13,872 197 8,000 1,159 14.48 %

002-415-5220 FURNITURE AND FIXTURES 0 0 500 0 0.00 %

WATER MANAGMENT

002-415-5701 DOMESTIC USE 265,708 40,660 268,000 92,454 34.50 %

002-415-5703 ASSESSMENTS 90,392 0 93,000 12,649 13.60 %

002-415-5704 NEW SHARES 2,306 0 2,260 0 0.00 %

002-415-5706 NISP PARTICIPATION 250,000 0 281,250 281,250 100.00 %

------------ ------------ ------------ ------------ ----------

TOTAL ADMINISTRATION 908,395 67,108 973,955 519,462 53.34 %


OPERATING COSTS

002-430-5110 PROFESSIONAL SERVICES 0 387 3,600 1,525 42.37 %

002-430-5125 SOFTWARE / LICENSES 0 32 18,285 8,899 48.67 %

002-430-5126 PHONES 0 394 4,400 1,712 38.91 %

002-430-5127 DATALINES / INTERNET 0 223 1,190 872 73.26 %

002-430-5128 HOSTED APPLICATION 0 68 2,100 268 12.77 %

002-430-5129 COPIER / PRINTER / FAX / SCANNER 3,094 210 6,000 3,427 57.12 %


002-430-5205 MISCELLANEOUS PROJECTS 0 25 2,500 262 10.46 %

002-430-5220 HARDWARE 0 0 4,200 1,219 29.01 %

002-430-5223 CAPITAL ASSETS / PROJECTS 0 0 16,000 2,988 18.67 %

------------ ------------ ------------ ------------ ----------

TOTAL INFORMATION TECHNOLOGY 3,094 1,340 58,275 21,171 36.33 %

OPERATIONS

PERSONNEL COSTS

002-433-5001 SALARIES 179,618 16,037 227,000 86,821 38.25 %

002-433-5002 OVERTIME WAGES 1,754 211 3,000 2,257 75.23 %

002-433-5004 FICA TAXES 13,569 1,192 17,595 6,573 37.36 %





002-433-5013 WORKER'S COMP DEDUCTIBLES 0 0 1,000 0 0.00 %


OPERATING COSTS

002-433-5101 SUPPLIES 2,036 134 2,060 998 48.47 %





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget


002-433-5104 PW PHONES 3,359 0 0 0 0.00 %

002-433-5105 VEHICLE FUEL 9,909 1,197 11,000 2,774 25.22 %

002-433-5108 TRAINING AND SEMINARS 1,555 1,178 2,020 1,723 85.29 %

002-433-5109 TRAVEL 0 0 310 4 1.39 %

002-433-5110 PROFESSIONAL SERVICES 375 0 5,000 127 2.54 %

002-433-5111 CITY INSURANCE 14,273 0 11,500 10,249 89.12 %

002-433-5116 WEARING APPAREL 2,829 0 3,700 1,253 33.87 %

002-433-5162 TAP INSTALLATION MATERIALS 28,864 2,852 27,900 6,095 21.85 %

002-433-5163 TRASH COLLECTION 256,480 20,546 250,000 81,778 32.71 %

002-433-5168 WATER TESTING/SAMPLING 3,690 115 6,000 1,323 22.05 %

002-433-5169 CERTIFICATIONS 679 0 600 540 90.00 %

002-433-5170 SAFETY EQUIPMENT 1,378 139 1,000 506 50.63 %

002-433-5171 EQUIPMENT RENTAL 757 0 1,000 0 0.00 %

002-433-5195 OTHER EXPENSES 3,126 231 2,600 1,011 38.89 %


002-433-5201 SHOP UTILITIES 3,202 246 4,000 1,650 41.25 %

002-433-5202 SYSTEM UTILITIES 1,559 136 2,600 634 24.39 %

002-433-5205 SHOP EQUIPMENT MAINTENANCE 31 0 620 0 0.00 %

002-433-5206 VEHICLE MAINTENANCE 2,755 0 3,000 317 10.56 %

002-433-5207 FACILITIES MAINTENANCE 2,781 44 3,000 715 23.85 %

002-433-5211 GROUND MAINTENANCE 290 0 1,000 0 0.00 %

002-433-5212 DOMESTIC SYSTEM MAINTENANCE 42,256 3,144 35,000 11,827 33.79 %

002-433-5213 HEAVY EQUIPMENT MAINTENANCE 1,533 726 2,000 913 45.63 %

002-433-5214 WATER TOWER MAINTENANCE 4,001 0 9,000 932 10.35 %

002-433-5219 SHOP EQUIPMENT 3,257 30 3,000 437 14.58 %

002-433-5220 FURNITURE AND FIXTURES 0 0 1,000 0 0.00 %

CAPITAL PURCHASES

002-433-5812 CAPITAL ASSETS 0 0 60,130 33,727 56.09 %

002-433-5813 CAPITAL PROJECTS 0 34,382 22,800 34,382 150.80 %

------------ ------------ ------------ ------------ ----------

TOTAL OPERATING COSTS 641,124 86,914 785,000 316,427 40.31 %

DEBT SERVICE

002-470-5816 BOND PRINCIPAL 0 158,117 173,515 158,117 91.13 %

002-470-5817 BOND INTEREST 33,068 15,397 28,745 15,397 53.56 %

------------ ------------ ------------ ------------ ----------

TOTAL DEBT SERVICE 33,068 173,514 202,260 173,514 85.79 %

------------ ------------ ------------ ------------ ----------

TOTAL WATER FUND EXPENDITURES 1,585,681 328,876 2,019,490 1,030,573 51.03 %

============ ============ ============ ============ ==========

GAAP EXPENDITURES

002-475-5811 DEPRECIATION 310,403 0 280,000 0 0.00 %

------------ ------------ ------------ ------------ ----------

TOTAL GAAP EXPENDITURES 310,403 0 280,000 0 0.00 %

------------ ------------ ------------ ------------ ----------

002 WATER FUND BALANCE + (-) 5,763,009 (132,007) 253,535 (140,163) (55.28)%



STREET FUNDREVENUES & EXPENDITURES


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

REVENUES

TAXES

003-310-4001 PROPERTY TAX 217,988 90,180 220,230 156,914 71.25 %

003-310-4003 SALES TAX 714,920 87,577 743,400 282,975 38.06 %

003-310-4005 USE TAX 209,300 21,478 220,000 106,889 48.59 %

003-310-4010 HIGHWAY USERS TAX 227,319 14,834 181,360 73,367 40.45 %

003-310-4011 MOTOR VEHICLE REGISTRATION 21,884 2,144 22,800 7,677 33.67 %

003-310-4012 COUNTY ROAD AND BRIDGE 76,739 15,964 70,000 31,927 45.61 %

------------ ------------ ------------ ------------ ----------

TOTAL TAXES 1,468,150 232,177 1,457,790 659,750 45.26 %

LICENSES & PERMITS

003-320-4203 EXCAVATION PERMIT FEES 14,000 500 10,000 2,000 20.00 %

------------ ------------ ------------ ------------ ----------

TOTAL LICENSES & PERMITS 14,000 500 10,000 2,000 20.00 %

OTHER INCOME


------------ ------------ ------------ ------------ ----------


DONATIONS & GRANTS

------------ ------------ ------------ ------------ ----------

TOTAL DONATIONS & GRANTS 0 0 0 0 0.00 %


------------ ------------ ------------ ------------ ----------

TOTAL OTHER FINANCING SOURCES 0 0 0 0 0.00 %

------------ ------------ ------------ ------------ ----------

TOTAL STREET FUND REVENUES 1,510,092 235,290 1,497,790 674,317 45.02 %

============ ============ ============ ============ ==========

EXPENDITURES

ADMINISTRATIVE

PERSONNEL COSTS

003-415-5001 SALARIES 134,648 12,289 166,000 66,640 40.14 %

003-415-5002 OVERTIME WAGES 0 0 200 0 0.00 %

003-415-5004 FICA TAXES 10,017 924 12,700 5,006 39.42 %




003-415-5012 WORKER'S COMPENSATION INSURANCE 217 0 240 200 83.33 %


------------ ------------ ------------ ------------ ----------

TOTAL ADMINISTRATIVE 169,003 15,664 208,920 84,823 40.60 %


OPERATING COSTS





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

003-430-5110 PROFESSIONAL SERVICES 0 258 2,400 1,017 42.37 %

003-430-5125 SOFTWARE / LICENSES 0 22 10,705 2,606 24.35 %

003-430-5126 PHONES 0 289 3,650 1,188 32.55 %

003-430-5127 DATALINES / INTERNET 0 176 795 635 79.81 %

003-430-5128 HOSTED APPLICATIONS 0 45 1,400 179 12.77 %

003-430-5129 COPIER / PRINTER / FAX / SCANNER 1,008 50 3,500 2,726 77.87 %


003-430-5205 MISCELLANEOUS PROJECTS 0 25 2,500 262 10.46 %

003-430-5220 HARDWARE 0 0 2,800 1,145 40.89 %

003-430-5223 CAPITAL ASSETS / PROJECTS 0 0 16,000 2,988 18.67 %

------------ ------------ ------------ ------------ ----------

TOTAL INFORMATION TECHNOLOGY 1,008 865 43,750 12,744 29.13 %

OPERATIONS

PERSONNEL COSTS

003-433-5001 SALARIES 136,500 12,435 179,000 67,158 37.52 %

003-433-5002 OVERTIME WAGES 1,754 211 3,495 2,126 60.82 %

003-433-5004 FICA TAXES 10,254 925 13,960 5,103 36.55 %





003-433-5013 WORKER'S COMP DEDUCTIBLE 0 0 1,000 0 0.00 %


OPERATING COSTS

003-433-5101 SUPPLIES 2,658 138 2,060 1,008 48.92 %


003-433-5104 PHONES 2,767 0 0 0 0.00 %

003-433-5105 VEHICLE FUEL 9,960 1,306 11,000 2,953 26.85 %




003-433-5111 INSURANCE 15,224 0 11,500 10,249 89.12 %

003-433-5112 PUBLISHING 95 0 500 0 0.00 %

003-433-5113 AUDITING 2,909 1,900 3,090 2,850 92.23 %

003-433-5116 WEARING APPAREL 3,265 0 3,000 1,253 41.77 %

003-433-5170 SAFETY EQUIPMENT 1,425 139 1,000 924 92.41 %

003-433-5171 EQUIPMENT RENTAL 6,188 0 10,000 688 6.88 %

003-433-5195 OTHER EXPENSES 675 0 1,000 138 13.75 %


003-433-5201 SHOP UTILITIES 3,206 246 4,000 1,650 41.25 %

003-433-5203 SHOP WATER 68 0 210 0 0.00 %

003-433-5205 SHOP EQUIPMENT MAINTENANCE 214 0 1,000 43 4.30 %

003-433-5206 VEHICLE MAINTENANCE 5,173 114 5,000 1,404 28.07 %

003-433-5207 FACILITIES MAINTENANCE 2,788 44 3,000 715 23.85 %

003-433-5211 GROUND MAINTENANCE 5,603 550 9,000 1,104 12.27 %

003-433-5213 HEAVY EQUIPMENT MAINTENANCE 9,536 1,021 15,000 6,697 44.64 %

003-433-5219 SHOP EQUIPMENT 4,337 30 5,000 537 10.74 %

CAPITAL PURCHASES

003-433-5812 CAPITAL ASSETS 17,845 16,210 60,130 49,937 83.05 %

003-433-5813 CAPITAL PROJECTS 716,142 0 85,000 125,982 148.21 %

HIGHWAYS & STREETS

003-433-5901 ROADBASE AND PAVING 67,928 0 303,300 4,451 1.47 %





ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

003-433-5902 ROAD MAINTENANCE 164,096 0 170,000 565 0.33 %

003-433-5903 SIDEWALK REPLACEMENT/REPAIR 26,854 0 15,000 0 0.00 %

003-433-5904 STREET STRIPING 843 0 18,000 0 0.00 %

003-433-5905 SNOW REMOVAL 10,959 1,886 32,000 35,222 110.07 %

003-433-5906 WEED CONTROL 3,885 85 4,000 606 15.14 %

003-433-5907 TRAFFIC SIGNS 9,274 54 6,000 2,662 44.37 %

003-433-5908 PUBLIC FACILITIES LIGHTING 7,524 627 8,000 2,508 31.35 %

003-433-5909 DUST CONTROL 5,601 4,650 6,000 9,637 160.61 %

------------ ------------ ------------ ------------ ----------

TOTAL OPERATIONS 1,306,666 46,934 1,063,840 362,116 34.04 %

DEBT SERVICE

003-470-5816 BOND PRINCIPAL 177,278 0 184,430 0 0.00 %

003-470-5817 BOND INTEREST 40,393 17,901 35,805 17,901 50.00 %

------------ ------------ ------------ ------------ ----------


------------ ------------ ------------ ------------ ----------

TOTAL STREET FUND EXPENDITURES 1,694,348 81,364 1,536,745 477,583 31.08 %

============ ============ ============ ============ ==========

------------ ------------ ------------ ------------ ----------

003 STREET FUND BALANCE + (-) (184,255) 153,926 (38,955) 196,734 (505.03)%

============ ============ ============ ============ ==========



CAPITAL FUNDREVENUES & EXPENDITURES


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% OF

BUDGET

REVENUES

TAXES

004-310-4003 SALES TAX 158,873 19,462 165,200 62,884 38.07 %

004-310-4005 USE TAX 46,511 4,773 48,890 23,753 48.58 %

------------ ------------ ------------ ------------ -----------

TOTAL TAXES 205,384 24,235 214,090 86,637 40.47 %

OTHER INCOME

004-370-4520 INTEREST/DIVIDEND INCOME 3,281 130 3,800 901 23.72 %

------------ ------------ ------------ ------------ -----------

TOTAL OTHER INCOME 3,281 130 3,800 901 23.72 %

GRANTS & DONATIONS

------------ ------------ ------------ ------------ -----------

TOTAL GRANTS & DONATIONS 0 0 0 0 0.00 %


004-390-4002 PROCEEDS FROM CAPITAL LEASES 96,386 0 0 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL OTHER FINANCING SOURCES 96,386 0 0 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL CAPITAL FUND REVENUES 305,051 24,364 217,890 87,539 40.18 %

============ ============ ============ ============ ===========

EXPENDITURES

CITY HALL

004-411-5220 FURNITURE AND FIXTURES 0 0 38,000 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL CITY HALL 0 0 38,000 0 0.00 %

BUILDING & PLANNING

------------ ------------ ------------ ------------ -----------

TOTAL BUILDING & PLANNING 0 0 0 0 0.00 %

POLICE

004-421-5103 INFORMATION TECHNOLOGY 0 0 33,500 33,136 98.91 %

004-421-5224 VEHICLES 97,824 0 0 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL POLICE 97,824 0 33,500 33,136 98.91 %

HIGHWAYS & STREETS

004-433-5222 CAPITAL LEASE PURCHASES 96,636 0 0 0 0.00 %

------------ ------------ ------------ ------------ -----------

TOTAL HIGHWAYS & STREETS 96,636 0 0 0 0.00 %

PARKS & RECREATION

------------ ------------ ------------ ------------ -----------

TOTAL PARKS & RECREATION 0 0 0 0 0.00 %



CAPITAL FUNDREVENUES & EXPENDITURES


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% OF

BUDGET

DEBT SERVICE

004-470-5816 DEBT PRINCIPAL 172,206 33,222 213,075 155,929 73.18 %

004-470-5817 DEBT INTEREST 18,866 887 14,360 7,486 52.13 %

------------ ------------ ------------ ------------ -----------


------------ ------------ ------------ ------------ -----------

TOTAL CAPITAL FUND EXPENDITURE 385,532 34,109 298,935 196,551 65.75 %

============ ============ ============ ============ ===========

------------ ------------ ------------ ------------ -----------

004 CAPITAL FUND BALANCE + (-) (80,480) (9,745) (81,045) (109,012) 134.51 %

============ ============ ============ ============ ===========



CONSERVATION TRUSTREVENUES & EXPENDITURES


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

REVENUES

OTHER INCOME

005-370-4504 COLORADO LOTTERY PROCEEDS 25,354 0 23,500 10,154 43.21 %

005-370-4520 INTEREST/DIVIDEND INCOME 26 4 50 23 46.68 %

------------ ------------ ------------ ------------ ----------

TOTAL CTF REVENUE 25,380 4 23,550 10,177 43.22 %

============ ============ ============ ============ ==========

EXPENSES

005-460-5913 BMX IMPROVEMENTS 4,317 1,579 30,000 27,405 91.35 %

------------ ------------ ------------ ------------ ----------

TOTAL CTF EXPENSES 4,317 1,579 30,000 27,405 91.35 %

============ ============ ============ ============ ==========

------------ ------------ ------------ ------------ ----------

005 CONSERVATION FUND BALANCE +(-) 21,063 (1,576) (6,450) (17,228) 267.10 %

============ ============ ============ ============ ==========



IMPACT FEE FUNDREVENUES & EXPENDITURES


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

REVENUES

IMPACT FEES

006-360-4512 ARTERIAL ROADWAY IMPACT FEE 356,213 39,919 290,320 153,766 52.96 %

006-360-4513 REGIONAL DRAINAGE IMPACT FEE 49,770 5,467 39,760 21,983 55.29 %

006-360-4514 PARKS IMPACT FEE 136,213 19,459 141,520 70,760 50.00 %

006-360-4515 CITY FACILITIES IMPACT FEE 13,475 1,925 14,000 7,000 50.00 %

------------ ------------ ------------ ------------ ----------

TOTAL IMPACT FEE 555,671 66,770 485,600 253,509 52.21 %

OTHER INCOME


------------ ------------ ------------ ------------ ----------


------------ ------------ ------------ ------------ ----------

TOTAL IMPACT FEE FUND REVENUES 595,261 72,114 535,600 277,947 51.89 %

============ ============ ============ ============ ==========

EXPENDITURES

IMPACT FEE

006-480-5920 ARTERIAL ROADWAYS 134,292 0 0 11,620 0.00 %

------------ ------------ ------------ ------------ ----------

TOTAL IMPACT FEE EXPENSES 134,292 0 0 11,620 0.00 %

------------ ------------ ------------ ------------ ----------

006 IMPACT FEE FUND BALANCE +(-) 460,968 72,114 535,600 266,327 49.73 %

============ ============ ============ ============ ==========



EDAD FUNDREVENUES AND EXPENDITURE


ACCOUNT NUMBER 2018

Actuals

Current

Month

2019

Budget

YTD

Actual

% of

Budget

REVENUES

EDAD TAXES

007-310-4001 PROPERTY TAXES 16,790 64,038 20,125 89,287 443.66 %

------------ ------------ ------------ ------------ ----------

TOTAL EDAD TAXES 16,790 64,038 20,125 89,287 443.66 %


007-390-4003 TRANSFER IN - GENERAL FUND 187,576 0 108,000 77,000 71.30 %

------------ ------------ ------------ ------------ ----------

TOTAL OTHER FINANCING SOURCES 187,576 0 108,000 77,000 71.30 %

------------ ------------ ------------ ------------ ----------

TOTAL EDAD FUND REVENUES 204,366 64,038 128,125 166,287 129.79 %

============ ============ ============ ============ ==========

EXPENDITURES

EDAD OPERATIONS

007-414-5110 PROFESSIONAL SERVICES 364 2,457 50,000 10,584 21.17 %

007-414-5223 CAPITAL ASSETS 100,000 0 0 0 0.00 %

------------ ------------ ------------ ------------ ----------

TOTAL EDAD OPERATIONS 100,364 2,457 50,000 10,584 21.17 %

DEBT SERVICE

007-470-5816 DEBT PRINCIPAL 95,332 0 73,000 75,558 103.50 %

007-470-5817 DEBT INTEREST 8,308 0 5,000 1,450 29.00 %

------------ ------------ ------------ ------------ ----------

TOTAL DEBT SERVICE 103,640 0 78,000 77,007 98.73 %

------------ ------------ ------------ ------------ ----------

TOTAL EDAD EXPENSES 204,004 2,457 128,000 87,591 68.43 %

------------ ------------ ------------ ------------ ----------

007 EDAD FUND BALANCE +(-) 363 61,581 125 78,696 9999.00 %

============ ============ ============ ============ ==========

Simple Balance Sheet City of Dacono06/19/2019 10:33


For Fiscal Year: 2019 thru Fiscal Month: May, for Fund: 001

Account

Number

Account

Title

Ending

Bal

Net

Amount

001-100-0000 FIRST BANK - General Operating 2,450,261.30

001-100-0200 TBK - FSA Account 8,145.75

001-100-0201 TBK - Money Market 48,116.68

001-100-0302 COLOTRUST - General 2,113,026.71

001-100-0400 CSAFE - General 1,269,785.99

001-100-1100 GENERAL I - Cash Drawer 200.00

001-100-1101 POLICE - Cash Drawer 50.00

001-100-1102 GENERAL II - Cash Drawer 350.00

001-110-1201 A/R - Property Tax 492,027.70

001-111-1202 A/R - Other Taxes 24.27-

001-112-1203 A/R - Developer Charges 15,017.05

001-130-1103 DEPOSIT FUNDS 1,245.00

** TOTAL ASSET** 6,398,201.91

001-200-2100 ACCOUNTS PAYABLE MISCELLANEOUS 10,831.87

001-210-2001 A/P - PAYROLL 55,581.04

001-210-2004 STATE INCOME TAX 0.00

001-210-2005 STATE UNEMPLOYMENT INS 710.20

001-211-2008 HEALTH INSURANCE 175.06-

001-211-2009 DENTAL INSURANCE 27.94-

001-211-2010 VISION INSURANCE 52.85

001-211-2013 FLEX SPENDING 3,659.59-

001-212-2014 LIFE INSURANCE 322.70-

001-212-2015 DISABILITY INSURANCE 886.90-

001-240-2201 A/P - PROPERTY TAX 492,027.70

001-240-2203 JAIL EXPENSE TRUST 19,103.88

001-240-2204 JUDICIAL EDUCATION TRUST - JEF 3,516.87

001-240-2205 POLICE EDUCATION TRUST - JEF 463.25

001-240-2206 MUNICIPAL SURCHARGE TRUST 22,198.99

001-240-2208 SANTA COPS TRUST 20,775.52

001-240-2210 SUMMER FESTIVAL TRUST 66,932.41

001-240-2211 VETERANS MEMORIAL TRUST 1,178.66

001-250-2300 RESTITUTION 358.16

001-250-2301 COURT BONDS 1,865.00

001-250-2302 CONSRUCTION/DEMO BONDS 54,000.00

001-260-2400 IMPROVEMENT GUARANTY - Interstate Ford 566,202.88

001-260-2402 IMP GUARANTY - Montgomery Elect 10,047.54

001-260-2403 AUTUMN VALLEY 182,966.03

001-260-2407 MCV CAPITAL LLC - Airgas 30,112.08

001-260-2408 MAVERIK INC 184,387.61

001-260-2409 Dacono 25 Partners (GATEWAY) 30,000.00

001-260-2411 BURGER KING - Lukas Family 12,435.00

001-260-2412 LONGS PEAK BUSINESS CENTER 23,045.71

001-290-2900 FUND BALANCE 2,463,966.31

** TOTAL LIABILITY** 4,247,687.37

** TOTAL REVENUE** 3,769,999.23

** TOTAL EXPENSE** 1,619,484.69

TOTAL LIABILITY AND EQUITY 6,398,201.91




Account

Number

Account

Title

Ending

Bal

Net

Amount

002-100-0000 FIRST BANK - Water Operating 621,019.29

002-100-0303 COLOTRUST - Water Fund 1,417,737.29

002-100-1100 WATER/TRASH-Cash Drawer 100.00

002-101-0306 COLOTRUST - Wtr Sys Service Fund 3,858,492.43

002-111-1204 A/R - Property Liens 1,514.42

002-112-1205 A/R - Water Customers 222,279.47

002-120-1210 INVENTORY 2,813.16

002-130-1206 Notes Receivable 46,109.12

002-150-1302 WATER RIGHTS 13,893,783.07

002-160-1303 WATER TOWER 1,507,399.81

002-160-1304 DEPRECIATION-Water Tower 1,130,860.00-

002-160-1305 WATER SYSTEM 10,405,035.56

002-160-1306 DEPRECIATION-Water System 2,196,734.00-

002-160-1307 EQUIPMENT 35,652.44

002-160-1308 DEPRECIATION-Equipment 32,130.00-

002-160-1309 VEHICLES 210,930.50

002-160-1310 DEPRECIATION-Vehicles 205,311.00-

002-160-1311 BUILDINGS 154,252.68

002-160-1312 DEPRECIATION-Buildings 47,169.00-

002-160-1313 CONSTRUCTION IN PROGRESS 17,844.75

** TOTAL ASSET** 28,782,759.99

002-200-2102 A/P - Miscellaneous 1,193.88

002-210-2001 A/P - PAYROLL 12,687.84




002-212-2014 LIFE INSURANCE 153.76-


002-220-2200 A/P - PTO 28,357.16

002-230-2101 A/P - Interest 3,169.67

002-240-2214 A/P - Tap Installations 22,000.00

002-240-2215 A/P - Tap Certifications 413,500.00

002-240-2216 A/P - CASH-IN-LIEU OF WATER 4,687.50

002-250-2303 HYDRANT METER DEPOSITS 29,050.00

002-260-2506 BONDS PAYABLE 1,188,920.00

002-290-2900 FUND BALANCE 23,174,729.04

002-290-2902 CONTRIBUTED CAPITAL 4,044,973.85


** TOTAL REVENUE** 890,410.40

** TOTAL EXPENSE** 1,030,572.97





Account

Number

Account

Title

Ending

Bal

Net

Amount

003-100-0000 FIRST BANK - Street Operating 349,092.92

003-100-0304 COLOTRUST - Street Fund 1,208,814.64

003-110-1201 A/R - Property Tax 63,329.51

003-111-1202 A/R - Other Taxes 215.06-

** TOTAL ASSET** 1,621,022.01

003-200-2100 ACCOUNTS PAYABLE MISCELLANEOUS 1,231.15

003-210-2001 A/P - PAYROLL 9,869.30




003-212-2014 LIFE INSURANCE 76.83-


003-240-2201 A/P - PROPERTY TAX 63,329.51

003-290-2900 FUND BALANCE 1,350,112.65



** TOTAL EXPENSE** 477,583.26





Account

Number

Account

Title

Ending

Bal

Net

Amount

004-100-0000 FIRST BANK - Capital Eq Operating 11,813.25

004-100-0305 COLOTRUST - Capital Equipment 60,385.69

004-111-1202 A/R - Sales Taxes 47.82-

** TOTAL ASSET** 72,151.12

004-290-2900 FUND BALANCE 181,163.17

** TOTAL LIABILITY** 181,163.17



TOTAL LIABILITY AND EQUITY 72,151.12




Account

Number

Account

Title

Ending

Bal

Net

Amount

005-100-0000 FIRST BANK - CTF Operating 1,579.34-

005-100-0001 FIRST BANK - CTF Savings 19,956.43

** TOTAL ASSET** 18,377.09

005-290-2900 FUND BALANCE 35,605.24

** TOTAL LIABILITY** 35,605.24







Account

Number

Account

Title

Ending

Bal

Net

Amount

006-100-0000 FIRST BANK - Impact Fee Operating 66,770.00

006-101-0401 CSAFE - Arterial Roadway Fund 985,804.69

006-101-0402 CSAFE - Regional Drainage Fund 374,762.01

006-101-0403 CSAFE - Parks and Trails Fund 957,494.21

006-101-0404 CSAFE - City Facilities Fund 145,850.24

** TOTAL ASSET** 2,530,681.15

006-290-2900 FUND BALANCE 2,264,353.91








Account

Number

Account

Title

Ending

Bal

Net

Amount

007-100-0202 TBK - EDAD Operating 79,059.67

** TOTAL ASSET** 79,059.67

** TOTAL LIABILITY** 0.00

007-290-2900 FUND BALANCE 363.81

** TOTAL EQUITY** 363.81




Agenda Item No: V. d. Meeting Date: June 24, 2019 Subject: Consent Agenda Item d. Resolution 19-61, approving a third amendment to the agreement by and between the City of Dacono and SAFEBuilt Colorado, LLC for building department services. As Council is aware, there are properties in Dacono that have been damaged by fire and others that are in various states of neglect. In order to expedite the process of abatement through the International Building Codes and the Dacono Municipal Code, it is necessary to contract for supplemental building department services so the issues with these homes can be addressed as quickly as possible. ProCode, Inc. will be utilized to help with this process.

RESOLUTION NO. 19-61 A RESOLUTION APPROVING A THIRD AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF DACONO, COLORADO AND SAFEBUILT COLORADO, LLC FOR BUILDING DEPARTMENT SERVICES

WHEREAS, by that Agreement by and between the City of Dacono, Colorado, and Safe Built Colorado, Inc., now known as SAFEbuilt Colorado, LLC, for Building Department Services dated June 27, 2012 (the “Building Department Services Agreement”), the City contracted with SAFEbuilt to provide building department services, including designating SAFEbuilt the City’s sole building official for the Municipality; and

WHEREAS, there are currently within the City a number of discrete building department

services and tasks, including but not limited to abatements of dangerous buildings, for which the City finds it would serve the City and its residents to contract for supplemental building department services; and

WHEREAS, on June 10, 2019 by Resolution No. 19-60, the Dacono City Council

approved an Agreement by and between the City of Dacono and ProCode, Inc., for such Supplemental Building Department Services; and

WHEREAS, the City Council desires to recognize the City may, in writing with a copy

provided to SAFEbuilt, assign such building department services and tasks as the City may deem necessary or desirable for the health, safety and welfare of the City and its residents, and when so assigned, for the purpose of such services and tasks, ProCode shall be deemed the City’s building official, with all rights and privileges established by ordinance or statute for such position, as set forth in the Third Amendment to the Building Department Services Agreement that accompanies this resolution; and

WHEREAS, the City Council has reviewed the proposed Third Amendment, finds its terms

acceptable, and by this resolution desires to approve the same. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DACONO, COLORADO: Section 1. The proposed Third Amendment to Agreement between the City of Dacono, Colorado, and SAFEbuilt Colorado, LLC for Building Department Services is hereby approved in essentially the same form as the copy of such Third Amendment accompanying this resolution. Section 2. The Mayor is hereby authorized to execute the Third Amendment, and is further authorized to negotiate and approve on behalf of the City such revisions to the Third Amendment as the Mayor determines are necessary or desirable for the protection of the City, so long as the essential terms and conditions of the Third Amendment are not altered.

2

INTRODUCED, READ, and ADOPTED this 24th day of June, 2019. CITY OF DACONO, COLORADO _________________________________ Joe Baker, Mayor ATTEST: ___________________________________ Valerie Taylor, City Clerk 6/19/2019 3:38 PM [kmk] R:\Dacono\Resolution\SAFEbuilt Agr Third Amend.docx

THIRD AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF DACONO, COLORADO,

AND SAFEBUILT COLORADO, LLC FOR BUILDING DEPARTMENT SERVICES

THIS THIRD AMENDMENT to Agreement by and between the City of Dacono,

Colorado, and SAFEbuilt Colorado, LLC, for Building Department Services is entered into effective June 24, 2019 by and between the City of Dacono, a Colorado municipal corporation (the “City” or “Municipality”) and Safe Built Colorado, Inc., a Colorado corporation (“SAFEbuilt” or the “Corporation”).

WHEREAS, by that Agreement by and between the City of Dacono, Colorado, and Safe

Built Colorado, Inc., now known as SAFEbuilt Colorado, LLC, for Building Department Services dated June 27, 2012 (the “Building Department Services Agreement”), the City contracted with SAFEbuilt to provide building department services, including designating SAFEbuilt the City’s sole building official for the Municipality; and

WHEREAS, there are currently within the City a number of discrete building department

services and tasks, including but not limited to abatements of dangerous buildings, for which the City finds it would serve the City and its residents to contract for supplemental building department services; and

WHEREAS, on June 10, 2019 by Resolution No. 19-60, the Dacono City Council

approved an Agreement by and between the City of Dacono and ProCode, Inc., for Supplemental Building Department Services; and

WHEREAS, the City and SAFEbuilt desire by this Third Amendment to recognize the

City may, in writing with a copy provided to SAFEbuilt, assign such building department services and tasks as the City may deem necessary or desirable for the health, safety and welfare of the City and its residents, and when so assigned, for the purpose of such services and tasks, ProCode shall be deemed the City’s building official, with all rights and privileges established by ordinance or statute for such position.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable

consideration, the parties agree to the following amendments to the Building Department Services Agreement:

Section 1. Section 7 of the Building Department Services Agreement between the

City and SAFEbuilt is hereby amended to read as follows (words to be deleted stricken; words to be added underlined):

7. For the purposes of providing the building department services described

herein, the Municipality appoints the Corporation as the sole a building official for the Municipality and grants the Corporation all rights and privileges established by ordinance or statute for this position. The City reserves the right to obtain supplemental building department services

2

from persons or entities other than the Corporation and, in such case, that person or entity shall, for the purpose of such services, be deemed a City building official, with all rights and privileges established by ordinance or statute afforded a building official. The City shall provide the Corporation with written notice of building department services to be performed by any other person or entity, which notice may be electronic mail only notwithstanding the notice requirement in Section 38 of this Agreement, and the Corporation shall cooperate with and provide such information to this other person or entity designated by the City, in order for the City to receive efficient and comprehensive building department services meeting its needs.

Section 2. Except as amended by this Third Amendment, the Building Department

Services Agreement shall remain in full force and effect in accordance with its terms.

CITY OF DACONO, COLORADO

By: __________________________________ Joe Baker, Mayor

ATTEST:

By: ________________________________

Valerie Taylor, City Clerk 6/19/2019 3:13 PM [kmk] R:\Dacono\Agreements\SafeBuilt Agreement Third Amend 20190619.docx

SAFE BUILT COLORADO, INC. By: __________________________________ Printed Name: _________________________ Title: ________________________________

Agenda Item No: VI-A Meeting Date: June 24, 2019 Subject: Consideration and Approval of the 2018 Annual Audit Presenter: Kelly Stroh Background: The State of Colorado requires that each local government conduct an annual audit performed by an independent auditor. Anton Collins Mitchell LLP has completed the audit and Macy Ghalami and Tyra Litzau will present their findings. Because of requirements of the State, and the Federal Governmental Accounting Standards Board (GASB), the local government audit has become more of a technical document than a management tool, but it provides a valuable snapshot of the financial condition of the City. Because of the documents technical nature, the Management Discussion and Analysis presented at the front of the document provides a summary narrative of the important aspects of the document and explains in more detail the major projects the City underwent through the year. Also, the footnotes beginning on page 29, explain in better detail certain procedures and policies of the City’s accounting methodology. The notes are a critical piece of the financial statements as they explain the relationship between the various statements and provide a detailed narrative explaining the totals and values presented. A copy of the audited financial statements is available at City Hall and will be posted on the website, after approval, for the general public to view. The audit can be adopted by motion. It must be submitted to the State by July 31. Recommended Action: Consideration and approval of the 2018 Annual Audit.

City of Dacono, Colorado

Audit Wrap Up December 31, 2018

This presentation was prepared as part of our audit, has consequential limitations, is restricted to those charged with governance and, if

appropriate, management, and is not intended and should not be used by anyone other than those specified parties.

DATE

June 24, 2019 To the Honorable Mayor and City Council City of Dacono, Colorado 512 Cherry Avenue Dacono, Colorado 80514 Professional standards require us to communicate with you regarding matters related to the audit, that are, in our professional judgment, significant and relevant to your responsibilities in overseeing the financial reporting process. We presented an overview of our plan for the audit of the financial statements of the City of Dacono, Colorado (the “City”) as of and for the year ended December 31, 2018, including a summary of our overall objectives for the audit, and the nature, scope, and timing of the planned audit work. This communication is intended to elaborate on the significant findings from our audit, including our views on the qualitative aspects of the City’s accounting practices and policies, management’s judgments and estimates, financial statement disclosures, and other required matters. We are pleased to be of service to the City and look forward to meeting with you to discuss our audit findings, as well as other matters that may be of interest to you, and to answer any questions you might have. Respectfully,

ACM LLP

1 AUDIT WRAP-UP – DECEMBER 31, 2018

Discussion Outline Page Discussion Outline .......................................................................................... 1

Status of Our Audit ......................................................................................... 2

Results of Our Audit ........................................................................................ 3

Internal Control Over Financial Reporting .............................................................. 5

Other Required Communications ......................................................................... 7

Independence Communication ........................................................................... 8

GASB Standards Effective in 2018 ........................................................................ 9

GASB Standards Effective in 2019 -2020 ............................................................... 11


Status of Our Audit We have substantially completed our audit of the financial statements as of and for the year ended December 31, 2018. Our audit was conducted in accordance with auditing standards generally accepted in the United States of America. This audit of the financial statements does not relieve management or those charged with governance of their responsibilities. The objective of our audit was to obtain reasonable - not absolute - assurance about whether

the financial statements are free from material misstatements.

The scope of the work performed was substantially the same as that described to you in our earlier Audit Planning communications.

We expect to issue an unmodified opinion on the financial statements.

Our responsibility for other information in documents containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform procedures to corroborate such other information. However, in accordance with professional standards, we have read the information included by the City and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements. Our responsibility also includes calling to management’s attention any information that we believe is a material misstatement of fact. We have not identified any material inconsistencies or concluded there are any material misstatements of facts in the other information that management has chosen not to correct.

All records and information requested by ACM were freely available for our inspection.

Management’s cooperation was excellent. We received full access to all information that we requested while performing our audit, and we acknowledge the full cooperation extended to us by all levels of City personnel throughout the course of our work.


Results of Our Audit ACCOUNTING PRACTICES, POLICIES, AND ESTIMATES The following summarizes the more significant required communications related to our audit concerning the City’s accounting practices, policies, and estimates: The City’s significant accounting practices and policies are those included in Note 1 to the financial statements. These accounting practices and policies are appropriate, comply with generally accepted accounting principles and industry practice, were consistently applied, and are adequately described within Note 1 to the financial statements.

• There were no changes in significant accounting policies and practices during 2018. Significant estimates are those that require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The City’s significant accounting estimates, including a description of management’s processes and significant assumptions used in development of the estimates, are disclosed in Note 1 of the financial statements.

• Management did not make any significant changes to the processes or significant assumptions used to develop the significant accounting estimates in 2018.

Primary Areas of Focus and Considerations and Findings

Revenue Recognition: The City’s major source of revenue consists of property taxes, sales and use tax, intergovernmental grants and contributions, and charges for services. The City records revenues when earned. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed by the provider have been met.

Accounts Receivable and Allowances: Accounts receivable represents amounts due from citizens and businesses for property and sales taxes, customers for utilities, and other governmental entities. No allowance is made for bad debts as they are deemed unlikely.

Capital Assets and Depreciation: Capital assets of the City continue to be a significant area of the City’s financial statements. Accordingly, as part of the audit, we paid particular attention to the costs of newly acquired assets, repairs and maintenance expenditures on existing capital assets, and the depreciation expense of these assets.

Long-term Obligations: The City currently has capital lease obligations totaling approximately $506k, one outstanding general obligation refunding bond payable totaling approximately $1.4 million in its governmental activities and has one outstanding water enterprise revenue bond payable totaling approximately $1.2 million in its business-type activities. Accordingly, we have applied certain procedures over balances, future maturities, and accrued interest associated with the bonds, along with compliance with the bond agreements. It appears that the City is properly accounting for these obligations.


Pension Reporting: The City has a defined benefit plans administered by the Fire and Police Pension Association of Colorado (“FPPA”). The FPPA plan is a cost-sharing, multiple-employer defined benefit plan. The City follows the standards relating to the pension plans. As such, the City has reported their proportionate share of the collective amounts for the cost sharing plans as a whole. In addition, changes in net pension liability were recognized as pension expense or reported as deferred outflows/inflows of resources depending on the nature of change.

Evaluation of Going Concern: No going concern issues were noted during our audit.

Evaluation of Estimates: Estimates were determined to be reasonable and free of bias.

CORRECTED AND UNCORRECTED MISSTATEMENTS Please refer to the schedule of corrected misstatements or Adjusting Journal Entries (“AJEs”). There were no uncorrected misstatements, other than those that were clearly trivial, related to accounts and/ or disclosures that were presented to management. QUALITY OF THE CITY’S FINANCIAL REPORTING A discussion was held regarding the quality of the City’s financial reporting, which included the following: Qualitative aspects of significant accounting policies and practices

Our assessment of critical accounting policies and practices

Our conclusions regarding significant accounting estimates

Significant unusual transactions

Financial statement presentation

New accounting pronouncements

Alternative accounting treatments


Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. Our consideration of internal control was for the limited purpose described above and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We are required to communicate, in writing, to those charged with governance all material weaknesses and significant deficiencies that have been identified in the City’s internal controls over financial reporting. The definitions of control deficiency, significant deficiency and material weakness follow: Category Definition

Deficiency in Internal Control

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis.

Significant Deficiency A deficiency or combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Material Weakness

A deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the District’s financial statements will not be prevented, or detected and corrected on a timely basis.

In conjunction with our audit of the financial statements, we noted no material weaknesses. However, material weaknesses may exist that have not been identified. Significant Deficiency Comments

Segregation of Duties (Repeat from the prior year)

During our walkthrough procedures over internal controls at the City, the following was identified:

• The employee responsible for reconciling the bank accounts is also an authorized signer on the City’s bank accounts and issues all disbursement checks. However, based on our discussion with the employee she only signs checks in emergency situations. However, there are controls in place where there is a secondary review over the bank reconciliation. We recommend that the person responsible for bank reconciliations is not an authorized signer of the City.

• A separate review and approval over journal entries is not performed by an employee other than the preparer. We recommend that a separate review and approval be completed for all manual journal entries.


• A separate review and approval over changes to the payroll system is not performed by an employee other than the preparer. Additionally, a separate review of the payroll registers is not being performed by an employee other than the preparer. We recommend that a separate review and approval be completed for all changes to the payroll system and a review of the payroll registers.


Other Required Communications Following is a summary of those required items, along with specific discussion points as they pertain to the City:

Requirement Discussion Points

Significant changes to planned audit strategy or significant risks initially identified

There were no significant changes to the planned audit strategy or significant risks initially identified and previously communicated to those charged with governance as part of our Audit Planning communications.

Obtain information from those charged with governance relevant to the audit

There were no matters noted relevant to the audit, including, but not limited to: violations or possible violations of laws or regulations; risk of material misstatements, including fraud risks; or tips or complaints regarding the City’s financial reporting that we were made aware of as a result of our inquiry of those charged with governance.

If applicable, nature and extent of specialized skills or knowledge needed related to significant risks

There were no specialized skills or knowledge needed, outside of the core engagement team, to perform the planned audit procedures or evaluate audit results related to significant risks.

Consultations with other accountants

We are not aware of any consultations about significant accounting or auditing matters between management and other accountants where we have identified a concern regarding such matters.

Our evaluation of the City’s relationships and transactions with related parties and their impact on the financial statements

We have evaluated the City’s process to identify, authorize and approve, account for, and disclose its relationships and transactions with related parties and noted no significant issues.

Disagreements with management There were no disagreements with management about matters, whether or not satisfactorily resolved, that individually or in aggregate could be significant to the City’s financial statements or to our auditor’s report.

Significant difficulties encountered during the audit

There were no significant difficulties encountered during the audit.

If applicable, other matters significant to the oversight of the City’s financial reporting process, including complaints or concerns regarding accounting or auditing matters

There are no other matters that we consider significant to the oversight of the City’s financial reporting process that have not been previously communicated.

Representations requested from management

Please refer to the management representation letter.


Independence Communication Our engagement letter to you dated December 27, 2018 describes our responsibilities in accordance with professional standards and certain regulatory authorities with regard to independence and the performance of our services. This letter also stipulates the responsibilities of the City with respect to independence as agreed to by the City. Please refer to that letter for further information.


GASB Standards Effective in 2018

GASB Standards Effective for Reporting Periods Beginning After June 15, 2017 (commences with fiscal years ending June 30, 2018) GASB STATEMENT NO. 75, ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS

Establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources and expenses/expenditures for other postemployment benefits (OPEB). Mirrors the requirements of GASB Statement No. 68 for employer reporting of pension liabilities, expense and deferred inflows/outflows.

Supersedes GASB Statement No. 45 and GASB Statement No. 57.

For plans administered through a trust, governments must recognize the net OPEB liability.

For plans not administered through a trust, the government must recognize the total OPEB liability.

GASB STATEMENT NO. 85, OMNIBUS 2017 Addresses several practice issues that have been identified during implementation of certain GASB

Statements:

1. Blending a component unit when the primary government is a business-type activity that reports in a single column.

2. Reporting amounts previously reported as goodwill and negative goodwill.

3. Classifying real estate held by insurance entities.

4. Measuring certain money market instruments at amortized cost.

5. Timing of the measurement of pension or OPEB liabilities and expenditures in governmental fund financial statements.

6. Recognizing on-behalf payments for pensions or OPEB in employer financial statements.

7. Presenting payroll-related measures in Required Supplementary Information for OPEB plans and employers that provide OPEB.

8. Classifying employer-paid member contributions for OPEB.

9. Simplifying certain aspects of the alternative measurement method for OPEB.

10. Accounting and reporting for OPEB provided through certain multiple-employer defined benefit OPEB plans.

GASB STATEMENT NO. 86, CERTAIN DEBT EXTINGUISHMENT ISSUES Resolves issue of how to record in-substance defeasance of debt when only existing resources are

used. Current standards only address reporting requirements when debt is extinguished using bond proceeds.

When cash or other existing resources are placed in an irrevocable trust to extinguish debt, it is considered to be in-substance defeasance, assuming all criteria are met.

The difference between the reacquisition price and the net carrying amount of the debt (including any remaining prepaid bond insurance) will be recognized as a separately identified gain or loss in the period of defeasance. This differs from current practice when debt is extinguished using bond proceeds, whereby the difference is deferred.


Payments to the escrow agent from existing resources should be reported as debt service expenditures in governmental fund types.

Additional disclosure, if applicable, is required for all in-substance defeasance transactions in the period the debt is defeased if the substitution of essentially risk-free monetary assets with monetary assets that are not essentially risk free in the trust is not prohibited. In all subsequent periods, the amount of debt defeased in substance that remains outstanding for which the risk of substitution exists, if any, should be disclosed.

GASB Standards Effective for Reporting Periods Beginning After June 15, 2018 (commences with fiscal years ending June 30, 2019) GASB STATEMENT NO. 83, CERTAIN ASSET RETIREMENT OBLIGATIONS Establishes measurement criteria for recording a liability for the retirement or removal of certain

assets such as:

Nuclear power plants

Sewage treatment facilities

Coal-fired power plant

Wind turbines

X-ray machines

Governments with legal obligations to perform future asset retirement activities related to its tangible capital assets would be required to recognize a liability.

Must be both an external obligating event, such as a court judgment or federal, state or local law; and an internal obligating event, such as contamination or retirement.

A liability and corresponding deferred outflow are recorded when the liability is both incurred and

reasonably estimable.

The liability is based on the best estimate of the current value of outlays expected to be incurred.

Deferred outflows should be amortized over the estimated useful life of the tangible capital asset.

Annual remeasurement required, adjusting for effects of inflation or deflation.

Exception for minority owner (<50%).

GASB STATEMENT NO. 88, CERTAIN DISCLOSURES RELATED TO DEBT, INCLUDING DIRECT BORROWINGS AND DIRECT PLACEMENTS Defines debt for purposes of disclosure as a liability that arises from a contractual obligation to

pay cash or other assets in one or more payments to settle an amount that is fixed as of the date the obligation is established.

Excludes pension and OPEB liabilities, leases (except for contracts reported as a financed purchase of the underlying assets) and accounts payable as those should be disclosed in separate notes.

Includes capital appreciation bonds and variable rate debt.

Additional note disclosures required for unused lines of credit, assets pledged as collateral, specific debt agreement terms.

Debt disclosures should separate information for direct borrowings and direct placements of debt from other debt.


GASB Standards Effective in 2019 -2020

GASB Standards Effective for Reporting Periods Beginning After December 15, 2018 (commences with fiscal years ending December 31, 2019) GASB STATEMENT NO. 84, FIDUCIARY ACTIVITIES Establishes criteria for reporting fiduciary activities that focuses on whether the government

controls the assets and the fiduciary relationship with the beneficiaries.

The statement describes four fiduciary funds:

1. Pension and OPEB trust funds

2. Investment trust funds

3. Private-purpose trust funds

4. Custodial funds

Custodial funds replace agency funds for activities that are not held in trust.

For activities for which a trust agreement exists, an investment trust fund or private purpose trust fund will be used.

Pension funds not held in trust would be classified as custodial funds.

GASB STATEMENT NO. 90, MAJORITY EQUITY INTERESTS, AN AMENDMENT OF GASB STATEMENTS NO. 14 AND NO. 61 Will report a majority equity interest in a legally separate organization as an investment if

it meets the definition.

Measured using the equity method, unless held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund or an endowment/permanent fund. These funds would utilize fair value to measure the majority equity interest.

For all other majority equity interests in a legally separate organization, report the legally separate organization as component unit and the fund that holds the equity interest should report an asset using the equity method.

Acquisition of a component unit in which the government holds 100% interest would be measured using acquisition value.

GASB Standards Effective for Reporting Periods Beginning After December 15, 2019 (commences with fiscal years ending December 31, 2020) GASB STATEMENT NO. 87, LEASES This standard will require recognition of certain lease assets and liabilities for leases that

are currently classified as operating leases.

New definition of a lease - a contract that conveys the right to use another entity’s nonfinancial asset for a period in an exchange or exchange-like transaction.

Eliminates the distinction between operating and capital leases.

Excludes short-term leases.


Excludes leases that transfer ownership and service concession arrangements that are covered by GASB Statement No. 60.

Lessees would recognize a lease liability and an intangible right-to-use lease asset which would be amortized in a systematic and reasonable manner over the shorter of the lease term or the useful life of the underlying asset.

Lessors would recognize lease receivable and deferred inflow of resources which would be recognized as revenue in a systematic and rational manner over the term of the lease.

GASB STATEMENT NO. 89, ACCOUNTING FOR INTEREST COST INCURRED BEFORE THE END OF A CONSTRUCTION PERIOD Upon implementation, in financial statements using the economic resources measurement

focus (business-type activities and enterprise funds) interest incurred during construction should be recognized as an expense of the period.

Interest costs on construction-in-progress will be capitalized only to the implementation date of this Statement. The provisions of this Statement are to be applied prospectively and will therefore not require a restatement of any balances.

In financial statements using the current financial resources measurement focus, interest incurred during construction should be recognized as an expenditure (no change).

If a government has regulated operations as defined by paragraph 476 of GASB Statement No. 62, this Statement does not eliminate or remove the requirement to capitalize qualifying interest costs as a regulatory asset.

City of Dacono, Colorado Financial Statements and Supplementary Information For the Year Ended December 31, 2018

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City of Dacono, Colorado

Contents

Independent Auditor’s Report 1 - 2

Management’s Discussion and Analysis 3 – 16

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 17

Statement of Activities 18 – 19

Fund Financial Statements:

Balance Sheet - Governmental Funds 20 – 21

Reconciliation of the Governmental Funds Balance Sheet with the Government-wide Statement of Net Position 22

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23 – 24

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances with the Government-wide Statement of Activities 25

Statement of Net Position - Water Fund 26

Statement of Revenues, Expenses and Changes in Net Position - Water Fund 27

Statement of Cash Flows - Water Fund 28

Notes to Financial Statements 29 – 49

Required Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – General Fund 50

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Street Fund 51

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Impact Fee Fund 52

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Economic Development Authority Fund 53

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Capital Equipment Fund 54

Schedule of the City’s Proportionate Share of the Net Pension Liability/(Asset) 55

Schedule of City Contributions 56

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Other Supplementary Information:

Budgetary Comparison Schedules – Nonmajor Governmental Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Conservation Trust Fund 57

Budgetary Comparison Schedules - Enterprise Fund:

Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual (Non-GAAP Basis) - Water Fund 58

State Compliance

Local Highway Finance Report 59 – 60 Draft

Independent Auditor’s Report

Honorable Mayor and Members of the City Council City of Dacono, Colorado

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Dacono, Colorado (the “City”), as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Dacono, Colorado, as of December 31, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

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Other Matters

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 16 and the budgetary comparison information on pages 50 through 54, the Schedule of the City’s Proportionate Share of the Net Pension Liability/(Asset) on page 55 and Schedule of City Contributions on page 56 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 management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The budgetary comparison schedules and Local Highway Finance Report on pages 57 through 60 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The budgetary comparison schedules and Local Highway Finance Report are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. Greeley, Colorado June 24, 2019

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MD&A 3

Management’s Discussion and Analysis Fiscal Year Ending December 31, 2018

As management of the City of Dacono (the City), we offer readers of the City’s basic financial statements this narrative and analysis of the financial activities of the City of Dacono for the year ended December 31, 2018. The City’s financial performance is discussed and analyzed within the context of the accompanying financial statements and disclosures following this section. We encourage readers to consider the information presented in conjunction with additional information provided by auditors in the Independent Auditor’s Report. 2018 FINANCIAL HIGHLIGHTS The City’s assets and deferred outflows of resources exceed its liabilities and deferred inflows of resources by $51,482,539 (total net position). The City’s net position includes all Funds; General, Water, Capital Equipment, Street, Impact Fee, Conservation Trust, and the Economic Development Authority of Dacono (EDAD) Fund. Total net position is comprised of the following:

The net investment in capital assets of $39,248,782, which includes all property and equipment, net of accumulated depreciation, and is reduced by the amount of outstanding debt related to the purchase and construction of capital assets.

Net position of $385,097 is restricted by constraints imposed from outside the City by law or regulation.

Unrestricted net position of $11,848,600 represents the portion of assets available to maintain the City’s continued obligations to creditors and the citizens.

The City’s governmental funds reported total ending fund balance of $6,295,563 which is an increase of $841,550 from the prior year’s total governmental fund balance of $5,454,013. At the end of the current calendar year, the unassigned portion of the General Fund balance was $2,257,282 or 60% of total General Fund expenditures.

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MD&A 4

Overview of Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The basic statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. 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. These statements provide both short-term and long-term information about the City’s overall financial status. The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources with the difference between the categories being reported as net position. Over time, the increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. This statement among other non-financial factors such as diversification of the taxpayer base (commercial vs. residential), and the age and condition of the City infrastructure, would need to be evaluated to judge the City’s overall condition. The Statement of Activities presents information showing how the City’s net position changed during the 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 the related cash flows, otherwise known as accrual accounting. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future periods (for example, salaries and benefits earned but unpaid as of year-end or capital proceeds funded through lease purchase agreements). Both government-wide financial statements separate the activities performed by those supported by taxes and those business-type activities intended to recover most all of the costs through user fees and charges. Governmental activities include general government, public safety, public works, parks and recreation. Business-type activities include water and trash. The government-wide financial statements are found on pages 17 - 19 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 keeps track of these funds to ensure and demonstrate compliance with finance-related legal and code requirements.

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MD&A 5

The City has two types of funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Major funds are reported separately while the smaller funds are reported in combination. Both the Balance Sheet - Governmental Funds and the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds provide a reconciliation to assist in understanding the difference between them and the government-wide financial statements. The basic governmental fund financial statements are found on pages 20 - 25 of this report. Individual fund information for the non-major fund is found in the statement on page 57 of this report. Proprietary funds are reported in the fund financial statements and generally report services for which the City charges customers a fee. The City’s proprietary fund is classified as an enterprise fund or more specifically, the Water Fund. The Water Fund encompasses the same functions reported as business-type activities in the government-wide financial statements. The basic proprietary fund financial statements are located on pages 26 - 28 of this report. Notes to Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the financial statements, both government-wide and at the fund level. The notes to the basic financial statements begin on page 29 of this report. Required and Other Supplementary Information In addition to the basic financial statements and accompanying notes, this report also contains certain required supplementary information concerning the City’s budget presentations. Budgetary comparison schedules for the General Fund and the major special revenue funds are included as required supplementary information and can be found on pages 50 - 54 of this report. Also included in the supplementary information section is the net pension liability (asset) calculation to comply with GASB statement 68 requirements. A ten-year chart of City contributions to the defined benefit plan (FPPA) is presented. Because of the newness of this requirement, only six years of data exist. These items are found on pages 55 and 56 of this report.

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MD&A 6

Included in other supplementary information section are the combined and individual fund schedules of non-major fund types and the proprietary fund which can be found on pages 57 and 58 of this report. FINANCIAL ANALYSIS OF THE CITY AS A WHOLE The City’s net position at calendar year end is $51,482,539. The following table shows a summary of the City’s net position: Net Position

2018 2017 2018 2017 2018 2017Assets: Current and other assets $9,320,484 $8,499,497 $6,149,473 $5,588,957 $15,469,957 $14,088,454 Capital assets 19,633,643 14,671,710 22,612,696 18,075,458 42,246,339 32,747,168 Net pension asset 144,052 - - - - -

Total assets $29,098,179 23,171,207 28,762,169 23,664,415 57,716,296 46,835,622

Deferred outflow of resources Deferred loss on refunding 79,914 91,330 - - 79,914 91,330 Deferred outflows - pension 199,855 250,325 - - 199,855 250,325 Total deferred outflow of resources 279,769 341,655 - - 279,769 341,655

Liabilities: Current liabilities 1,090,915 911,068 325,192 840,595 1,416,107 1,751,663 Noncurrent liabilities: Due in one year 493,307 396,033 158,117 151,162 651,424 547,195 Due in more than one year 1,536,400 1,956,292 1,059,160 1,215,966 2,595,560 3,172,258 Net Pension Liability - 46,589 - - - 46,589

Total liabilities 3,120,622 3,309,982 1,542,469 2,850,950 4,663,091 5,517,705

Deferred inflow of resources Unearned revenue -property taxes 1,943,981 2,142,101 - - 1,943,981 2,142,101 Deferred inflows - pension 50,506 23,632 - - 50,506 23,632 Total deferred inflow of resources 1,994,487 2,165,733 - - 1,994,487 2,165,733

Net Position: Net investment in capital assets 17,825,006 12,526,059 21,423,776 16,735,376 39,248,782 29,261,435 Restricted 385,097 165,366 - - 385,097 165,366 Unrestricted 6,052,736 5,345,722 5,795,924 4,721,316 11,848,660 10,067,038

Total net position $24,262,839 $18,037,147 $27,219,700 $21,456,692 $51,482,539 $39,493,839

Governmental Business-Type TotalActivities Activities Primary Government

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MD&A 7

The following chart reports the total net position balance from fiscal year 2009-2018:

The City maintains a feasible current ratio. The current ratio compares current assets to current liabilities plus non-current liabilities and deferred inflows of resources due in one year and is an indication of the ability to pay current obligations. The current ratio for governmental activities is 2.6 as compared to 2.4 at December 31, 2017. For business-type activities, the current ratio is 12.7 as compared to 5.6 at December 31, 2017. The City reported positive gains in net position for both governmental and business-type activities. During 2018, net position increased by $6,225,692 for governmental activities and $5,763,008 for business-type activities. The City’s overall financial position increased during calendar year 2018 by $11,988,700. Note that approximately 67.4% of the governmental activities total assets are invested in capital assets (with 86.7% of the capital asset cost being depreciable). The City uses these capital assets to provide services to its citizens. 78.6% of the business-type activity assets are tied up in capital assets. Those assets are used to provide water and trash removal services to the citizens and generate revenues for the Water fund. Combining governmental activities and business-type activities, the City has invested 73.0% of its total assets in capital assets.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Position in

Dolla

rs

Net Position Over Time

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MD&A 8

The following table provides a summary of the City’s changes in net position:

Change in Net Position

2018 2017 2018 2017 2018 2017

Program revenues Charges for services $1,329,101 $783,365 $2,142,754 $2,000,204 $3,471,855 $2,783,569 Operating grants and contributions 384,251 254,388 - 262,695 384,251 517,083 Capital grants and contributions 4,332,192 1,327,606 5,409,965 3,465,358 9,742,157 4,792,964

General revenues Sales taxes 1,588,713 1,474,489 - - 1,588,713 1,474,489 Property taxes 2,136,633 1,409,790 - - 2,136,633 1,409,790 Franchise taxes 207,192 186,487 - - 207,192 186,487 Other taxes 793,310 724,508 - - 793,310 724,508 Interest 123,158 50,253 92,405 43,934 215,563 94,187 Other 357,434 191,399 13,970 13,563 371,404 204,962 Gain on sale of assets 5,000 54,684 - - 5,000 54,684

Total revenues 11,256,984 6,456,969 7,659,094 $5,785,754 18,916,078 12,242,723

Expenses General government 1,826,742 1,501,590 - - 1,826,742 1,501,590 Public safety 1,753,172 1,407,374 - - 1,753,172 1,407,374 Public works 1,245,303 1,197,242 - - 1,245,303 1,197,242 Parks and recreation 124,802 117,423 - - 124,802 117,423 Interest on long term debt 81,273 70,028 - - 81,273 70,028 Water - - 1,896,086 1,826,935 1,896,086 1,826,935

Total expenses 5,031,292 4,293,657 1,896,086 1,826,935 6,927,378 6,120,592

Change in net position 6,225,692 2,163,312 5,763,008 $3,958,819 11,988,700 6,122,131

Net position, beginning $18,037,147 15,873,835 21,456,692 17,497,873 $39,493,839 33,371,708

Net position, ending $24,262,839 $18,037,147 $27,219,700 $21,456,692 $51,482,539 $39,493,839

Total

Primary Government

Governmental

Activities

Business-type

Activities

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MD&A 9

Governmental Activity Revenues The operations of the City are funded primarily by local property tax revenues and sales tax. Other funding sources are use tax, franchise and admissions tax and building permits. Tax revenue for the year was $4,725,848, an increase of 24.5% from the prior year. Sales tax increased in 2018 by 7.7%, property tax collections increased 51.5% and all other taxes increased by 9.8%. In total, tax revenue increased $930,574 for the 2018 calendar year. The high rate of increase in property tax is primarily due to the increase in oil and gas production during 2018 and will fluctuate year to year due to the volatility of the industry. Growth is the means by which the City will be able to increase both revenue streams to provide resources for building and maintaining capital infrastructure and amenities for its citizens. Overall, total revenue increased across all governmental funds from 2017 to 2018 by $1,845,113. Governmental Activity Expenses The following table represents the cost of each of the City’s programs, including the net cost (total cost less revenues generated by the activities). The net cost illustrates the burden placed on the taxpayers by each of these functions.

Total Cost of Service

Percentage of Total

Net Cost of Service

Percentage of Total

General Government $1,826,742 36.3% ($599,279) -59.1%Public Safety $1,753,172 34.8% ($1,610,695) -158.8%Public Works $1,245,303 24.8% $3,404,947 335.7%Parks and Recreation $124,802 2.5% ($99,448) -9.8%Long-term Debt Interest $81,273 1.6% ($81,273) -8.0%Total $5,031,292 100.0% $1,014,252 100.0%

Governmental Activities

The public safety function is one of the highest cost functions of government due to the necessity to upgrade technologies, high cost of capital assets, and staffing requirements. Proprietary-type funds Proprietary-type funds are used to account for activities that have the characteristics of business activities. Net position in these funds is similar to retained earnings in the private sector. TABOR limits governmental grants and outside sources of funding to 10% of the total revenues for an enterprise fund. TABOR is the commonly used acronym for the Taxpayers Bill of Rights, which is an amendment to the Colorado Constitution known as Article X, Section 20.

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MD&A 10

The City’s only proprietary fund, the Water Fund reported $27,219,700 in net position at the end of 2018, up $5,763,008 from the prior year’s ending balance of $21,456,692. The unrestricted portion of net position as of December 31, 2018 was $5,795,924 up from $4,721,316 as of December 31, 2017. The unrestricted portion of net position is that amount that is currently not invested in capital assets, or held to cover liabilities. All costs in the Fund are supported by the Fund itself. Proprietary funds generally report services for which the City charges customers a fee. The City’s Water Fund receives its revenue from water distribution services, capital improvement fees, and trash collection services. Trash collections fees are passed through the Water Fund as an expense and therefore do not create any additional revenue for the City. Capital improvement fees are committed funds for the maintenance and construction of water system capital and infrastructure, including bond payments. The Water Fund maintained cash and cash equivalents at the end of the calendar year of $5,887,337, an increase of 17.2% from the prior year’s balance of $5,022,464. The cash and cash equivalents value is the liquid resources available to maintain current operations and pay its creditors. The Water Fund’s reserves are increasing due to growth and developer programs created to improve reserves for future water needs; there was no increase in rates charged for water in 2018. The City will undergo a water rate study in 2020 to analyze future demand, sustainability and potential fee increases to meet the needs of the community. FUND ANALYSIS Governmental Funds The focus for 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, unassigned fund balance may serve as a useful measure of the City’s net resources available for ongoing service delivery requirements. As of the end of the current fiscal year the City’s governmental funds reported a combined ending fund balance of $6,295,563 up from the fund balance of $5,454,013 as of December 31, 2017. Of that fund balance, $2,257,282 is unassigned and available for future needs. Non-spendable funds include $1,245 held in deposit by a vendor for postage liability. Restricted fund balances are those whose purpose is specifically designated by law and include the Conservation Trust for parks and open space of $35,605 and money set aside to meet the TABOR emergency reserve requirement of $205,440. The committed fund balances are those that are earmarked by resolution, or ordinance as established by City Council; highway and street funds of $1,350,112, impact fees for roadways, drainage, parks and City facilities of $2,264,353, $181,163 for capital equipment and other assets, and $363 in the Economic Development Authority of Dacono, Dacono’s urban renewal authority fund.

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MD&A 11

The total ending fund balance of governmental funds increased 15.4% from the prior year. General Fund – The General Fund is the City’s primary operating fund. The General Fund balance is $2,463,967, a 33.9% increase from the prior year fund balance of $1,840,075. The ending unassigned fund balance represents the equivalent of 60.0% of annual expenditures; compared to 58.5% at December 31, 2018, this ratio is strong and represents growing General Fund reserves. Total tax revenue appropriated to the General Fund increased from 2017 levels by 34.7%, this increase is mostly due to rising property tax, which increased in 2018 by 51.5% from rising oil and gas production. Licensing and permit fees increased from 2017 levels, up 119%. There were 79 new home permits pulled in 2018 compared to 80 new homes in 2017. Two commercial properties pulled permits in 2018; Courtesy Ford and Symmetry Builders. The biggest cause of the large increase in licensing was the introduction of encroachment licenses. Black Diamond Rockies Midstream signed an encroachment license agreement for a crude oil pipeline to be installed through City properties. The City received a one-time payment of $350,000 in 2018 for the license and privilege and will receive recurring revenues in subsequent years. Court fines increased in 2018 by 27.9% from the prior year. In total, General Fund revenues increased 47.6% from 2017 levels, the most notable reasons are the aforementioned property tax and licensing increases. General Fund expenditures increased 19.4%. Overall general government expenditures rose $305,622 or 21.0%. This category includes several departments including administration, municipal court, planning, legislative and economic development. The increase was primarily due to more oil and gas development and upcoming residential and commercial planning as well; attorney costs, engineering reviews, and developer reimbursable costs all increased in 2018. The City also saw an increase in information technology expenses; installing a new server in a new server room and improvements to various computers and peripherals in several departments. Public Safety expenditures increased by $452,782 or 34.1%. This increase is mainly due to higher personnel costs; the City’s Police department is fully staffed; many officers with several years of service behind them. Parks and recreation expenditures decreased $3,415 or 4.4%. This modest decrease came from generally lower maintenance costs and personnel expenses.

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MD&A 12

Capital Outlay made up 3.8% of the total general fund expenditures. These expenditures included a new Carbon Valley Veteran’s Memorial sign, permanent electric power at Centennial field, additional lighting at Clem Dufour Park, amenities added to Dave Osborne Park, building a new server room in the City Hall basement, and installation of a new server. In total, $144,073 was spent on capital assets through the General Fund. Street Fund - This fund is used primarily to track revenue and expenses directly related to the building, repair and maintenance of the streets and sidewalks within the City limits. Tax revenue is the main source of revenue of the Street Fund. Dacono voters approved a tax increase in 2005 for the issuance of GO bonds for a street improvement project which were refunded in 2014. Also, the street fund receives 45% of all sales and use tax generated by the City. The fund also receives 100% of the highway user’s tax supplied by CDOT. In 2018, Street Fund revenues were used to pave Glen Ayre Street, create a school zone for Homyak K-8, add road base to Grandview Blvd and York Street, slurry seal and road patch various areas in the City, and install sidewalk chases at Sharpe Farms. Other projects that were started include a new storage building for Public Works, installing drain pans at Sharpe Farms, and beginning design work for Forest Avenue; these projects will continue into 2019. The ending fund balance of the Street Fund is $1,350,112, a decrease of 12.0% from the prior year fund balance of $1,534,367. Capital Equipment Fund – This fund is used exclusively for purchasing capital assets. The main revenue source for this fund is sales and use tax; 10% of all sales and use tax collections have been committed to this fund by Council resolution. In 2018, this fund was used to lease purchase a tractor with a plow, and purchase two more vehicles for the Police Department. This fund is also used to make recurring lease purchase payments for other equipment purchase in prior years. In total, the cost of equipment purchased through the Capital Equipment Fund totaled $194,460; the debt payments totaled $191,072. The ending fund balance is $181,163, a decrease of 30.8% from the prior year fund balance of $261,644. Impact Fee Fund – This fund is a special revenue fund created to pay for amenities required for future growth and expansion. There are four designated accounts in this fund; arterial roads, drainage, parks, and City facilities. Impact fees are a requirement of new development to cover the cost of necessary infrastructure and amenities to support the additional growth. In 2018, this fund covered design fees related to paving York Street in the future; designing will continue into 2019. The ending fund balance is $2,264,353, an increase of 25.6% from the 2017 fund balance of $1,803,385. Conservation Trust Fund – This fund is a restricted fund with the main revenue source being lottery ticket sales from the state of Colorado. The funds are to be spent on building, restoring, and maintaining parks and open space within the City limits. In 2018, the City used a portion of these funds to maintain the BMX track as provided in the intergovernmental agreement with the Carbon Valley Parks and Recreation District. The ending balance in this fund is $35,605 up 144.8% from 2017’s balance of $14,542.

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MD&A 13

Economic Development Authority of Dacono Fund – This fund is a committed fund which was created to support the urban renewal efforts in Dacono. The Fund was primarily supported by the General Fund during 2018 but did start to bring in tax increment financing during the year. The Authority spent $100,000 on the next phase of concrete fence panels along Holly Street. This expenditure is aimed at advancing the City of Dacono’s goal of eliminating deteriorating and blight in areas of the city. The Authority also paid debt payments of $103,640 on the vacant property purchased in 2016. The fund has a small balance of $363 at year end. Proprietary Funds As previously explained, proprietary funds are established as a business-type activity, therefore are accounted for much like a privately held business and net assets are essentially retained earnings. The City of Dacono maintains only one proprietary fund. Water Fund – This fund is responsible for maintaining the entire water system utilizing customer fees as the main source of revenue. Total water revenue for 2018 was $3.12 million. In comparison, the expenses covered by that revenue reached $2.01 million, resulting in a gain of about $1.09 million. In 2018, the City spent $278,268 replacing the SCADA water system and relocating all the residential meters in Sundance to curbside. The increase in Water Fund balance will be placed in reserves for future capital projects. To help revive new construction heavily burdened by the high cost of water and related expenses, Council implemented the Water Dedication Assistance Program, in 2014, which was a limited program to provide developers access to discounted CBT water shares allotted to the City for their designated projects. This cash-in-lieu program offered a 25% discount from market rates for project water. In turn, the developer would provide an upgraded amenity in the project for the benefit of its residents and the City. The project was a success and all the available shares were sold to three developers in two years. As these developers applied for permits, the revenue was recognized as capital contributions. In 2018, $765.938 was generated from this project. The revenue created by this program will provide reserves for future water projects such as NISP. In 2018, the City introduced another cash-in-lieu program with different guidelines but will build up those reserves further. The unrestricted net position in the Water Fund at the end of 2018 is $5,795,924; a 22.8% increase from the prior year. General Fund Budgetary Highlights The City budgeted General Fund revenues of $4,381,255 for the year ending December 31, 2018. Actual revenues were $4,563,604. The City budgeted for General Fund expenditures of $4,049,045 for the year ending December 31, 2018. Actual expenditures were $3,757,136. The difference is spread out through all

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MD&A 14

departments but the majority came from decreases in the police department, economic development and parks and recreation. The overall fund balance increased by $475,682 more than was budgeted (variance). Street Fund Budgetary Highlights The City budgeted Street Fund revenues of $1,415,110 for the year ending December 31, 2018. Actual revenues were $1,510,092. The primary reason for the $94,982 increase was higher highway users tax revenue and sales and use tax collections. The City budgeted for Street Fund expenditures of $1,969,025 for the year ending December 31, 2018. Actual expenditures were $1,694,347. The main reason for the $274,678 decrease comes from projects that were budgeted for in 2018 but did not get fully completed; these include the Public Works storage building, Forest Avenue design work, and the Sharpe Farms drain pans. All of these project will continue into 2019. The overall fund balance decreased by $369,600 less than budgeted (variance). CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets as of December 31, 2018 amounts to $19,633,643 for governmental activities and $22,612,696 for business-type activities (net of accumulated depreciation). This investment in capital assets consists of land, buildings, water rights, water system, improvements/infrastructure, vehicles and equipment. The detail of this investment is in Note 5 to the financial statements. Long-term Debt As of December 31, 2018, the City’s long-term debt consisted of $3,246,984 in capital leases, street general obligation bonds, water revenue bonds, and accrued compensated employee absences (earned paid time off). The detail of Long-term debt is in Note 6 to the financial statements. ECONOMIC CONDITIONS AFFECTING THE CITY Residential growth- Housing starts remained stable in 2018; 80 new homes were permitted in 2017 and 79 were permitted in 2018. Interest in new development throughout the City remains high with the most active developers being CDG Colorado and Century Communities. Tamrick Homes also began a 15-lot phase in Eagle Meadow.

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MD&A 15

The cost, availability and certainty of water remains the largest obstacles to growth in the City. The cost of Colorado Big Thompson water continues to rise dramatically; the market rate is between $28,600-$35,000 per share. Water costs factor into the overall development cost and attainability of housing. In 2018, the City took a pro-active approach to establish a cash-in-lieu program through a Water Rights Dedication Assistance Policy adopted by Resolution 18-106. This resolution allows the City to sell water at market-rate via cash-in-lieu. The program is competitive and there is limited availability. Eligible projects enter into a water purchase agreement with the City of Dacono. Development projects deemed to have quality amenities exceeding minimum standards, enhanced architectural design standards, or other features that provide added value to the community are given the highest priority. As growth remains a primary city goal, the City remains focused on committing resources to development of creative policies, streamlining the development process and associated costs, and finding alternative sources of water to provide development certainty and affordability of this resource. Business growth – The City continues to see growth in commercial and industrial development. In 2018, building permits for new businesses such as Courtesy Ford, Maverik Store, and Van’s/Sunbelt Rentals were issued. Approximately 4-square miles of Dacono are designed as part of the Federal Opportunity Zones. The Opportunity Zones incentive is a new community investment tool established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The City is proactively marketing this program through international publications, trade show journals, and creating a community prospectus. Additionally, advances were made to create a stand-alone economic development website with customized content for prospective businesses and industries looking to relocate to Dacono. The City continues to partner with Upstate Colorado for administration of the State of Colorado-Weld County Enterprise Zone. The Enterprise Zone provides state income tax credits to encourage businesses to locate/expand in designated areas of the state. Oil and Gas - Oil and gas activity in the City of Dacono remains strong. The Dacono City Council approved two operator agreements in 2018 permitting a total of 58 wells. Anadarko intends to drill up to thirty-six (36) wells in two different pad sites and Crestone Peak Resource plans to drill twenty-two (22) wells on two pads. The intent of the operator agreements was to reduce the surface impacts of oil and gas exploration by protecting property values through enhanced safety and best management practices. Additionally, the operator agreement process led to critical changes in the proposed surface location of several wells further reducing potential financial impacts and community impacts of oil and gas exploration. The City retained BBC Research & Consulting (BBC) to evaluate and estimate the benefits the City will receive from the Anadarko Operator Agreement. According to the BBC study, the agreement will create between $12.0 and $19.6 million in market benefits for the City and its residents through a combination of land dedication, annexation agreements, development fees

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MD&A 16

and permit revenue, and revenue from oil and gas production. According to data from the Weld County Assessor, the market value of the land donated to the City of Dacono is about $1.7 million as of 2018. Crestone Peak Resources, LLC provided the City with their own fiscal analysis. According to Crestone, over a twenty-five-year production cycle on average, the Crestone facilities are expected to generate $621,126 in taxes to the City per year with a total fiscal impact estimated at $15,528,154 for the City’s General Fund It is worth noting these estimates are based upon current publicly available information. Changes to assessment rates, mill levies, tax rates, and/or oil and gas prices which could fluctuate in the future will impact the long-term projections.

REQUESTS FOR INFORMATION The financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City. Questions concerning any of the information provided in this report or requests for additional information should be addressed to:

City of Dacono Attn: Kelly Stroh

512 Cherry St P. O. Box 186

Dacono, CO 80514

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Basic Financial Statements

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Governmental Business-TypeActivities Activities Total

AssetsCash and investments 4,910,404$ 2,393,892$ 7,304,296$ Restricted cash and investments 2,281,784 3,493,445 5,775,229 Receivables 2,127,051 259,323 2,386,374 Inventory - 2,813 2,813 Deposits 1,245 - 1,245 Capital assets:

Not being depreciated 2,592,477 13,911,628 16,504,105 Being depreciated, net of accumulated depreciation 17,041,166 8,701,068 25,742,234

Net pension asset 144,052 - 144,052

Total assets 29,098,179 28,762,169 57,860,348

Deferred outflows of resourcesDeferred loss on refunding 79,914 - 79,914 Deferred outflows of resources relating to pensions 199,855 - 199,855

Total deferred outflows of resources 279,769 - 279,769

LiabilitiesAccounts payable 137,800 173,884 311,684 Accrued salaries and benefits 64,898 12,900 77,798 Accrued interest payable 9,975 3,170 13,145 Unearned revenues 110,844 11,188 122,032 Developer escrow 725,170 - 725,170 Deposits 42,228 124,050 166,278 Noncurrent liabilities: Accrued compensated absences 141,156 28,357 169,513

Due within one year 493,307 158,117 651,424 Due in more than one year 1,395,244 1,030,803 2,426,047

Total liabilities 3,120,622 1,542,469 4,663,091

Deferred inflows of resourcesDeferred revenues - property taxes 1,943,981 - 1,943,981 Deferred inflows of resources relating to pensions 50,506 - 50,506

Total deferred inflows of resources 1,994,487 - 1,994,487

Net positionNet investment in capital assets 17,825,006 21,423,776 39,248,782 Restricted

Emergencies 205,440 - 205,440 Parks and recreation 35,605 - 35,605 Pension 144,052 - 144,052

Unrestricted 6,052,736 5,795,924 11,848,660 Total net position 24,262,839$ 27,219,700$ 51,482,539$

The accompanying notes are an integral part of these financial statements.

City of Dacono, ColoradoStatement of Net Position

December 31, 2018

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Operating CapitalCharges for Grants and Grants and

Expenses Services Contributions Contributions

Functions/ProgramsGovernmental activities:

General government 1,826,742$ 1,201,749$ 25,714$ -$ Public safety 1,753,172 113,352 29,125 - Public works 1,245,303 14,000 304,058 4,332,192 Parks and recreation 124,802 - 25,354 - Interest on long-term debt 81,273 - - -

Total government activities 5,031,292 1,329,101 384,251 4,332,192

Business-type activities:Water 1,896,086 2,142,754 - 5,409,965

Total business-type activities 1,896,086 2,142,754 - 5,409,965

Total primary government 6,927,378$ 3,471,855$ 384,251$ 9,742,157$

General revenues

Taxes:Property taxesSpecific ownership taxesSales taxesFranchise taxesOther taxes

Earnings on investmentsOther revenuesGain on sale of capital assets

Total general revenues

Changes in net position

Net position at beginning of year

Net position at end of year

Program Revenues

City of Dacono, ColoradoStatement of Activities

Year Ended December 31, 2018

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Governmental Business-TypeActivities Activities Total

(599,279)$ -$ (599,279)$ (1,610,695) - (1,610,695) 3,404,947 - 3,404,947

(99,448) - (99,448) (81,273) - (81,273)

1,014,252 - 1,014,252

- 5,656,633 5,656,633

- 5,656,633 5,656,633

1,014,252 5,656,633 6,670,885

2,136,633 - 2,136,633 164,869 - 164,869

1,588,713 - 1,588,713 207,192 - 207,192 628,441 - 628,441 123,158 92,405 215,563 357,434 13,970 371,404

5,000 - 5,000

5,211,440 106,375 5,317,815

6,225,692 5,763,008 11,988,700

18,037,147 21,456,692 39,493,839

24,262,839$ 27,219,700$ 51,482,539$


Changes in Net PositionNet (Expense) Revenue and

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General Street Fund Fund

AssetsCash and investments 3,413,911$ 1,295,008$ Restricted cash and investments - - Receivables 1,812,753 298,652 Deposits 1,245 -

Total assets 5,227,909$ 1,593,660$

Liabilities, deferred inflows of resources and fund balances

LiabilitiesAccounts payable 107,024$ 13,345$ Accrued salaries and benefits 54,939 9,959 Unearned revenues 110,844 - Deposits 42,228 - Developer escrow 725,170 -

Total liabilities 1,040,205 23,304

Deferred inflows of resourcesDeferred revenues - property taxes 1,723,737 220,244

Total deferred inflows of resources 1,723,737 220,244

Fund balancesNonspendable 1,245 - Restricted 205,440 - Committed - 1,350,112 Unassigned 2,257,282 -

Total fund balances 2,463,967 1,350,112

5,227,909$ 1,593,660$

Total liabilities, deferred inflows of resources and fund balances

City of Dacono, ColoradoBalance Sheet

Governmental Funds

December 31, 2018

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Impact Economic Capital Conservation TotalFee Development Equipment Trust Fund GovernmentalFund Authority Fund Fund (Nonmajor) Funds

-$ 363$ 165,517$ 35,605$ 4,910,404$ 2,281,784 - - - 2,281,784

- - 15,646 - 2,127,051 - - - - 1,245

2,281,784$ 363$ 181,163$ 35,605$ 9,320,484$

17,431$ -$ -$ -$ 137,800$ - - - - 64,898 - - - - 110,844 - - - - 42,228 - - - - 725,170

17,431 - - - 1,080,940

- - - - 1,943,981

- - - - 1,943,981

- - - - 1,245 - - - 35,605 241,045

2,264,353 363 181,163 - 3,795,991 - - - - 2,257,282

2,264,353 363 181,163 35,605 6,295,563

2,281,784$ 363$ 181,163$ 35,605$ 9,320,484$


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Amounts reported for governmental activities in the statement of net position are different because:

Fund balances of governmental funds 6,295,563$

Capital assets 27,596,216$ Less: accumulated depreciation (7,962,573) 19,633,643

Net pension asset 144,052$ Deferred outflows of resources relating to pensions 199,855 Deferred inflows of resources relating to pensions (50,506) 293,401

79,914

Bonds payable (1,382,316)$ Capital leases payable (506,235) Accrued interest payable (9,975) Accrued compensated absences (141,156) (2,039,682)

Total net position of governmental activities 24,262,839$


Capital assets used in governmental activities are not current financial resources, andtherefore, are not reported in the fund financial statements.

Long-term liabilities are not due and payable from current financial resources, andtherefore, are not reported as liabilities on the fund financial statements. Long-termliabilities consist of:

City of Dacono, ColoradoReconciliation of the Governmental Funds Balance Sheet with the

Government-wide Statement of Net Position

December 31, 2018

The deferred loss on issuance of refunding bonds is reported as a deferred outflow of resources and is amortized over the life of the bonds in the statement of net position.

The net pension asset and related deferred inflows and deferred outflows of resourcesare not current financial resources and, therefore, are not reported in the fundfinancial statements.

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Street General Fund

RevenuesTaxes 3,339,582$ 1,164,092$ Impact fees - - Licenses and permits 646,078 14,000 Intergovernmental 54,839 304,058 Court 113,352 - Earnings on investments 52,319 27,942 Miscellaneous 357,434 -

Total revenues 4,563,604 1,510,092

ExpendituresCurrent:

General government 1,760,222 - Public safety 1,778,820 - Public works - 500,975 Parks and recreation 74,021 - Debt service:

Principal - 177,278 Interest - 40,393

Capital outlay 144,073 975,701

Total expenditures 3,757,136 1,694,347

Excess (deficiency) of revenues over expenditures 806,468 (184,255)

Other financing sources (uses)Proceeds from capital lease - - Proceeds from sale of capital assets 5,000 - Transfers in - - Transfers out (187,576) -

Total other financing sources (uses) (182,576) -

Net change in fund balances 623,892 (184,255)

Fund balances at beginning of year 1,840,075 1,534,367

Fund balances at end of year 2,463,967$ 1,350,112$

City of Dacono, ColoradoStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds


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Impact Economic Capital Conservation TotalFee Development Equipment Trust Fund GovernmentalFund Authority Fund Fund (Nonmajor) Funds

-$ 16,790$ 205,384$ -$ 4,725,848$ 555,671 - - - 555,671

- - - - 660,078 - - - 25,354 384,251 - - - - 113,352

39,590 - 3,281 26 123,158 - - - - 357,434

595,261 16,790 208,665 25,380 6,919,792

- 363 - - 1,760,585 - - - - 1,778,820 - - - - 500,975 - - - - 74,021 - 95,332 172,206 - 444,816 - 8,308 18,866 - 67,567

134,293 100,000 194,460 4,317 1,552,844

134,293 204,003 385,532 4,317 6,179,628

460,968 (187,213) (176,867) 21,063 740,164

- - 96,386 - 96,386 - - - - 5,000 - 187,576 - - 187,576 - - - - (187,576)

- 187,576 96,386 - 101,386

460,968 363 (80,481) 21,063 841,550

1,803,385 - 261,644 14,542 5,454,013

2,264,353$ 363$ 181,163$ 35,605$ 6,295,563$


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841,550$

Capital outlay 1,552,844$ Contributed capital assets 4,332,192 Depreciation expense (923,103) 4,961,933

(2,290)

(96,386)

444,816

(25,812)

(11,416)

113,297

Change in net position of governmental activities 6,225,692$


Changes in pension related account balances relating to the City's defined benefitretirement plan is recognized on the statement of activities and not included in thefund financial statements.

City of Dacono, ColoradoReconciliation of the Governmental Funds Statement of Revenues, Expenditures and

Repayment of bond and capital lease principal are expenditures in the governmentalfunds but are shown as reductions in long-term liabilities in the statement of netposition and do not affect the statement of activities.

Increase in accrued compensated absences liability reflected in expense on thestatement of activities and not reflected as an expense on the government fundstatement of revenue, expenditures and changes in fund balances.

Changes in Fund Balances with the Government-wide Statement of Activities


Amounts reported for governmental activities in the statement of activities are different because:

Capital outlays to purchase or build capital assets are reported in governmental funds asexpenditures. However, for governmental activities those costs are shown in thestatement of net position and allocated over their estimated useful lives as annualdepreciation expense in the statement of activities. This is the amount by which capitaloutlay and contributed assets exceeded depreciation during the period.

Increase in accrued interest payable is reflected as an expense on the statement ofactivities and not reflected as an expense on the governmental fund statement ofrevenues, expenditures and changes in fund balances.

The issuance of long-term debt is reported as other financing sources in thegovernmental funds; however, issuing debt increases long-term debt liabilities in thestatement of net position.

Net change in fund balances - governmental funds.

Some expenses reported in the statement of activities do not require the use of currentfinancial resources and, therefore, are not reported as expenditures in governmentalfunds. This includes the amortization of the deferred loss on refunding.

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AssetsCurrent assets

Cash and investments 2,393,892$ Restricted cash and investments 3,493,445 Accounts receivable 259,323 Inventory 2,813

Total current assets 6,149,473 Noncurrent assets

Capital assets, net of accumulated depreciation 22,612,696 Total noncurrent assets 22,612,696 Total assets 28,762,169

Liabilities and Net PositionCurrent liabilities

Accounts payable 173,884 Accrued salaries and benefits 12,900 Unearned revenue 11,188 Deposits 124,050 Accrued interest payable 3,170 Current portion of bonds payable 158,117

Total current liabilities 483,309 Noncurrent liabilities

Accrued compensated absences 28,357 1,030,803

Total noncurrent liabilities 1,059,160 Total liabilities 1,542,469 Net position

Net investment in capital assets 21,423,776 Unrestricted 5,795,924

Total net position 27,219,700$


City of Dacono, ColoradoStatement of Net Position

Water FundDecember 31, 2018

Bonds payable

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Operating revenuesWater sales 1,885,832$ Trash charges 256,922 Miscellaneous income 13,970

Total operating revenues 2,156,724

Operating expensesWater distribution and trash collection 641,628 General and administrative 910,987 Depreciation 310,403

Total operating expenses 1,863,018

Operating income 293,706

Nonoperating revenues (expenses)Earnings on investments 92,405 Interest expense (33,068)

Total nonoperating revenues (expenses) 59,337

Income before contributions 353,043 Capital contributions 5,409,965

Change in net position 5,763,008

Net position at beginning of year 21,456,692

Net position at end of year 27,219,700$


City of Dacono, ColoradoStatement of Revenues, Expenses and Changes in Net Position

Water FundYear Ended December 31, 2018

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Cash flows from operating activitiesCash received from customers 2,461,081$ Cash paid to suppliers (1,370,976) Cash payments to employees (473,661)

Net cash flows from operating activities 616,444

Cash flows from capital and related financing activitiesCapital contributions 700,501 Change in restricted cash and cash equivalents 110,559 Acquisitions of capital assets (296,114) Deposits from customers (64,450) Principal paid on long-term debt (151,162) Interest paid on long-term debt (32,751)

Net cash flows from capital and related financing activities 266,583

Cash flows from investing activitiesEarnings on investments 92,405

Net cash flows from investing activities 92,405

Net change in cash and cash equivalents 975,432

Cash and cash equivalents at beginning of year 1,418,460

Cash and cash equivalents at end of year 2,393,892$

Operating income 293,706$

Adjustments to reconcile operating income to net cash flows from operating activities:

Depreciation 310,403 Decrease in operating assets:

Receivables 304,357 (Increase)/decrease in operating liabilities:

Accounts payable (296,124) Accrued compensated absences and other accrued expenses 4,102

Net cash flows from operating activities 616,444$

Non-cash investing, capital and financing activitiesCapital assets contributed 4,551,527$


Reconciliation of operating income to net cash flows from operating activities

City of Dacono, ColoradoStatement of Cash Flows

Water FundYear Ended December 31, 2018

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City of Dacono, Colorado Notes to Financial Statements

December 31, 2018

29

1. Summary of Significant Accounting Policies

Form of Organization

The City of Dacono, Colorado (the “City”) was formed in 1908, and became a home rule city in 1994. The City is governed by a Mayor and six-member council elected by the residents. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as applied to government units. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial principles. The more significant of the City’s accounting policies are described below.

Reporting Entity

As defined by GAAP established by the GASB, the financial reporting entity consists of the primary government, as well as component units, which are legally separate organizations for which elected officials of the primary government are financially accountable. Financial accountability is defined as:

1) Appointment of a voting majority of the component unit’s governing board, and either, a) the ability to impose its will by the primary government, or b) there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the primary government; or

2) Fiscal dependency on the primary government and there is a potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government regardless of whether the organization has (1) a separately elected governing board, (2) a governing board appointed by a higher level of government or (3) a jointly appointed board.

Blended Component Unit The Economic Development Authority of Dacono (the “Authority”) was created in June 2016 and an agreement was entered into between the City and the Authority for administrative services. The Economic Development Authority of Dacono intends to provide financial assistance and deliver public improvements only as shown to be necessary, in partnership with property owners and other affected parties, in order to accomplish the objectives stated in the Dacono Area Urban Renewal Plan. The activity of the Economic Development Authority is reported as blended component unit of the City, a major fund. Separate financial statements are not issued for the Authority.

Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes, charges for services and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user charges for support.

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December 31, 2018

30

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to those 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. The fund financial statements report detailed information about the City. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column.

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, as are the proprietary fund financial statements. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are accounted for using the current financial resources measurement focus, whereby only current assets, deferred outflows of resources, liabilities, and deferred inflows of resources generally are included in the balance sheet, and the statement of revenues, expenditures and changes in fund balances present increases and decreases in those components. These funds use the modified accrual basis of accounting, whereby 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 City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures generally are recognized when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recognized only when payment is due. Because governmental fund statements are presented using a measurement focus and basis of accounting different from that used in the government-wide statements, a reconciliation is presented that briefly explains the adjustments necessary to reconcile to ending net position and the change in net position. In accordance with GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, the corresponding assets (receivables) in non-exchange transactions are recognized in the period in which the underlying exchange occurs, when an enforceable legal claim has arisen, when all eligibility requirements have been met, or when resources are received, depending on the revenue source. Property taxes attach an enforceable lien on property as of January 1. Taxes are levied in November, payable in the following year in full by April 30, or in two equal installments due on the last day of February and June 15.

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Governmental funds are used to account for all or most of a government’s general activities. The following are the City’s major governmental funds:

General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Street Fund – The Street Fund is a special revenue fund of the City. It is used to account for the allocated sales and use tax revenue which by City Ordinance must be used for public works projects.

Impact Fee Fund – The Impact Fee Fund is a special revenue fund of the City. It is used to account for the impact fee revenues from developers which by City Ordinance must be used for specific purposes.

Economic Development Authority Fund – The Economic Development Authority Fund is a blended component unit, and reported as a special revenue fund of the City. It reports the activities of the Economic Development Authority of Dacono. Capital Equipment Fund – The Capital Equipment Fund is a special revenue fund of the City. It may only be used to purchase capital assets.

The other governmental fund (nonmajor fund) is a special revenue fund (Conservation Trust Fund) and has been established to account for revenues derived from specific earmarked revenue sources which finance specific activities as required by law or administrative action. The proprietary fund (Water Fund) accounts for the financial activities associated with the provision of water and trash services. This fund is accounted for on a flow of economic resources measurement focus using the accrual basis of accounting. Therefore, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources associated with the operation of this fund are included on the statement of net position. Revenues and expenses are recorded in the accounting period in which they are earned or incurred, and they become measurable. Net position is segregated into amounts invested in capital assets and unrestricted. Proprietary fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in total net position. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Budgets

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

In October, the City staff submits to the City Council, a proposed operating budget for the fiscal year beginning the following January 1. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted to obtain taxpayer comments. Prior to December 31, the budget is legally enacted through passage of a resolution.

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The City Administration is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the City Council.

Budgets are legally adopted for all funds of the City. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with GAAP. The Budgetary comparison presented for the Enterprise Fund is presented on a non-GAAP budgetary basis. Capital outlay and debt payments are budgeted as expenditures.

Budgeted amounts in the financial statements are as originally adopted or as amended by the City Council. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations at the fund level.

The following table summarizes the individual fund budgeted expenditures, as originally adopted, and as revised:

Cash and Cash Equivalents The City considers all highly liquid investments with original maturities of three months or less, to be cash equivalents. Investments

Investments are reported at fair value or net asset value in accordance with GASB Statement No. 72, Fair Value Measurement and Application or GASB Statement No. 77, Certain External Investment Pools. Investments in external investment pools are measured at net asset value or amortized cost.

Property Taxes

Property taxes attach an enforceable lien on property as of January 1. Taxes are levied in November, payable in the following year in full by April 30, or in two equal installments due on the last day of February and June 15. The county treasurer bills and collects property taxes for all taxing entities within the county. Property tax receipts collected by the county treasurer each month are remitted to the City by the tenth day of the subsequent month. Property tax revenues are recognized in the government-wide financial statements in the year that the property taxes are used to fund the operations of the City.

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In the fund financial statements, property taxes are recognized in the year for which levied provided they become available and measurable. Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred inflows of resources are recorded at December 31. As the tax is collected in the succeeding year, the deferred inflows of resources is recognized as revenue and the receivable is reduced.

Unearned Revenue

The City reports unearned revenue on its financial statements. Unearned revenue arises when a potential revenue does not meet both the measurable and available criteria for recognition in the current period, under the modified accrual basis of accounting, or is measurable but not earned under the accrual basis of accounting. Unearned revenues also arise when resources are received by the City before it has a legal claim to them or prior to the provision of services, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability is removed from the financial statements and revenue is recognized. In the Water Fund, the unearned revenue represents amounts received for tap fees that have not been certified by the City.

Short-Term Interfund Receivables/Payables

During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables, if any, are classified as internal balances on the government-wide statement of net position and classified as due from other funds or due to other funds on the balance sheet.

Bond Premium, Deferred Loss on Refunding and Debt Issuance Costs

In the government-wide financial statements, long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums are deferred and amortized over the life of the bonds using the effective interest rate method as principal is paid. Debt issuance costs are recognized during the period of issuance. In the fund financial statements, governmental fund types recognize bond premiums during the period of issuance. The face amount of debt issued is reported as other financing sources. Premiums on the debt issuance are reported as other finance sources. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service. A deferred charge on refunding arises from advance refunding of debt. The difference between the cost of the securities placed in trust for future payment of refunded debt and the net carrying value of that debt is deferred and amortized as a component of interest expense over the shorter of the term of the refunding issue or the original term of the refunded debt. The unamortized amount is reported as a deferred outflow of resources in the government-wide financial statements.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (i.e., streets and roads, bridges, water lines, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost, or estimated fair value, of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or

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constructed. Donated capital assets are recorded at estimated fair market 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 asset lives are not capitalized. Assets are depreciated using the straight-line method. Depreciation expense is reflected as an operating expense in the government-wide statement of activities. Estimated useful lives for asset types are as follows:

Compensated Absences

The City reports compensated absences in accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences. Personal leave benefits are accrued as a liability as the benefits are earned if the employees’ rights to receive compensation are attributable to services rendered and it is probable that the City will compensate the employees for the benefits earned. Employees of the City are allowed to accumulate a maximum of paid time off ranging from 352 to 512 hours depending on the employees’ years of service. Upon termination of employment from the City, an employee will be compensated for accrued time off for the first 80 to 160 hours, depending on years of service. Remaining hours accrued above the limits will be paid at the ratio of one hour for every two hours accrued. Accrued time off is paid at the employee’s current pay rate. Amounts of vested or accumulated compensated absences that are not expected to be liquidated with expendable available financial resources are reported on the government-wide financial statements. The City has recorded a liability of $141,156 for the governmental activities and $28,357 for the business-type activities on the statement of net position at December 31, 2018.

Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements. In general, payables and accrued liabilities that will be paid from governmental funds are reported on the governmental fund financial statements regardless of whether they will be liquidated with current resources. However, claims and judgments and the noncurrent portion of long-term liabilities that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they will be paid with current, expendable, available financial resources. In general, payments made within 60 days after year-end are considered to have been made with current available financial resources. Capital lease obligations that will be paid from governmental funds are not recognized as a liability in the fund financial statements until due.

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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 represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports a deferred outflow of resources for the deferred loss on refunding and for pension-related amounts. See Note 7 for additional information relating to pensions. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City reports a deferred inflow of resources for property taxes and for pension-related amounts. See Note 7 for additional information relating to pensions.

Fund Balance and Net Position

In the government-wide and proprietary fund financial statements, net position is classified in the following categories:

Net Investment in Capital Assets - This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category.

Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position - This category represents the net position, which is not restricted for any project or other purpose. A deficit will require future funding.

In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balances of the governmental funds are classified as follows:

Nonspendable - amounts that cannot be spent either because they are not in spendable form or because they are legally or contractually required to be maintained intact. Restricted - amounts that can be spent only for specific purposes because of constitutional provisions, charter requirements or enabling legislation, or because of constraints that are externally imposed by creditors, grantors, or the laws or regulations of other governments. Committed - amounts that can be used only for specific purposes determined by a formal action of the City Council (the “Council”). The Council is the highest level of decision making authority for the City. Commitments may be established, modified, or rescinded only through resolutions approved by the City Council. Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. The City has the authority to assign amounts for specific purposes.

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Unassigned - all other spendable amounts. Only the General Fund reports a positive unassigned fund balance. In other governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to other purposes, the funds would report a negative unassigned fund balance.

When an expenditure is incurred for purposes for which both restricted and unrestricted resources are available, the City considers restricted resources to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Council has provided otherwise in its commitment or assignment actions. At December 31, 2018, fund balances are composed of the following:

Interfund Transactions

Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. Pensions The City contributes to the Statewide Defined Benefit Plan (“SWDB”), a cost-sharing multiple-employer defined benefit pension plan administered by the Fire and Police Pension Association of Colorado (“FPPA”). For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the SWDB plan and additions to/deductions from the SWDB plan fiduciary net position have been determined on the same basis as they are reported by the FPPA. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments at FPPA are reported at fair value.

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Estimates

The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.

2. Cash and Investments

Custodial Credit Risk - Deposits

Colorado state statutes govern the entity’s deposits of cash. For deposits in excess of federally insured limits, Colorado Revised Statutes (“CRS”) require the depository institution to maintain collateral on deposit with an official custodian (as authorized by the State Banking Board). The Colorado Public Deposit Protection Act (“PDPA”) requires state regulators to certify eligible depositories for public deposit. PDPA requires the eligible depositories with public deposits in excess of the amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) to create a single institutional collateral pool of obligations of the State of Colorado or local Colorado governments and obligations secured by first lien mortgages on real property located in the State. The pool is to be maintained by another institution or held in trust for all uninsured public deposits as a group. The market value of the assets in the pool must be at least 102% of the uninsured deposits. At December 31, 2018, the City had deposits with financial institutions with a carrying amount (book balance) of $1,690,022. The bank balances with the financial institutions were $1,699,814, of which $335,496 was covered by federal depository insurance. The remaining balance of $1,364,318 was collateralized with securities held by the financial institutions’ agents but not in the City’s name.

Investments

Colorado statutes specify investment instruments meeting defined rating and risk criteria in which the City may invest, which include:

Certificates of deposit with an original maturity in excess of three months Certain obligations of the United States and U.S. Government agency securities Certain international agency securities General obligation and revenue bonds of U.S. local government entities Banker’s acceptance of certain banks Commercial paper Written repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts Local government investment pools

Custodial Credit Risk – Investments

For investments, custodial credit risk is the risk that in the event of a failure of a counter party, the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have a specific policy for custodial credit risk. As of December 31, 2018, the City had no investments exposed to custodial credit risk outside of its investments in the Colorado Local Government Liquid Asset Trust and Colorado Surplus Asset Fund Trust (COLOTRUST and CSAFE), discussed below.

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Interest Rate Risk

The City does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Colorado Revised Statutes limit investment maturities to five years or less from the date of purchase. This limit on investment maturities is a means of limiting exposure to fair value losses arising from increasing interest rates.

Local Government Investment Pools

At December 31, 2018, the City had invested $8,686,068 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 Commission 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. The Trust offers shares in two portfolios, COLOTRUST PRIME and COLOTRUST PLUS+. COLOTRUST PRIME invests only in U.S. Treasury and government agencies. COLOTRUST PLUS+ can invest in U.S. Treasury, government agencies, and in the highest-rate commercial paper. A designated custodial bank serves as custodian for the Trust’s portfolios pursuant to a custodian agreement. The custodian acts as a 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. The Trust is rated AAAm by Standard and Poor’s and is measured at net asset value. There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. As of December 31, 2018, the City had invested balances of $2,702,735 in CSAFE, an investment vehicle established for local government entities in Colorado to pool surplus funds for investment purposes. CSAFE is a highly liquid fund operating similarly to a money market-like fund and each share is equal in value to $1.00. CSAFE measures all of its investment at amortized cost in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. CSAFE invests primarily in United States Treasuries, United States Agencies, Primary Dealer Repurchase Agreements, highly rated commercial paper, AAAm rated money market funds, highly rated corporate bonds and Colorado Depositories. The weighted average maturity of the portfolio shall not exceed 60 days and the weighted average life of the portfolio shall not exceed 120 days. CSAFE is rated AAAm by Standard & Poor’s and is measured at amortized cost. At December 31, 2018, the City had cash. cash equivalent, and investment balances, including restricted cash, as follows:

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The above amounts are classified in the statement of net position as follows:

Restricted Cash and Cash Equivalents

Cash is restricted for the following purposes, as designated by the Council:

3. Receivables Receivables at December 31, 2018, consisted of the following:

4. Interfund Transfers Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, or to use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. The only transfer made during the year was $187,576 from the General Fund to the Economic Development Authority Fund.

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5. Capital Assets

A summary of changes in governmental-activities capital assets for the year ended December 31, 2018, is as follows:

Depreciation expense for governmental activities has been allocated to various activities as follows:

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A summary of changes in business-type activities capital assets for the year ended December 31, 2018, is as follows:

6. Long-Term Debt

Governmental Activities:

2014 General Obligation Bond

On June 19, 2014, the City issued $1,943,579 in general obligation refunding bonds with interest at 2.59%. The City issued the bonds to advance refund $1,770,000 of the outstanding series 2005A bonds with interest at between 4.45% and 5.0%. The net proceeds were deposited in an irrevocable trust to provide for all future debt service on the refunded portion of the 2005A series bonds. As a result, $1,770,000 of the 2005A series bonds are considered defeased, and the City has removed this portion of the liability from its accounts. The remaining $135,000 outstanding on the 2005A series bond was paid in full by the City during 2015. The bonds mature in December 2025.

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The deferred loss on refunding is the difference between the reacquisition price (funds required to refund the old debt) and the net carrying amount of the old debt. This difference, reported in the statement of net position as a deferred outflow of resources totaling $79,914, will be charged to operations through 2025 using the effective-interest method.

Capital Leases

During 2015, the City entered into a capital lease for the purchase of a street sweeper. The lease requires four annual payments of $44,219 beginning in May 2015 and a final payment in May 2019. The lease bears interest at the rate of 2.55% per annum. The City has capitalized $266,150 of assets under this capital lease. During 2016, the Development Authority entered into a capital lease for the purchase of vacant land. The lease requires three payments of $57,400 and a final payment of $152,321 in October 2018. The lease bears interest at the rate of 5.00% per annum. The City has capitalized $287,000 of land under this capital lease. During 2017, the City entered into three capital leases for the purchase of three trucks for $99,050, a grader for $239,666, and dump truck for $228,828. The leases bear interest rates of 2.67%, 3.50%, and 4.92%, respectively. The three trucks lease requires annual payments of approximately $32,600 and a final payment in June 2019. The grader requires annual payments of $51,341 and a final payment in February 2022. The dump truck requires annual payments of $61,395 and a final payment due in December 2020. The City capitalized $567,544 of capital assets under these capital leases. During 2018, the City entered into a capital lease for a tractor for $96,386. The lease requires three payments of $44,746 beginning in January 2019 and a final payment in January 2021. The lease bears an interest rate of 5.00% per annum. The City capitalized $96,386 of assets under this capital lease. Changes in long-term debt for the year ended December 31, 2018 were as follows:

The following table represents future debt service requirements on the general obligation refunding bond debt as December 31, 2018:

Year Principal Interest Total2019 184,429$ 35,802$ 220,231$ 2020 186,286 31,025 217,311 2021 192,951 26,200 219,151 2022 198,948 21,203 220,151 2023 199,601 16,050 215,651

2024-2025 420,101 16,541 436,642

Total 1,382,316$ 146,821$ 1,529,137$

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The present value of the future minimum lease payments on the capital lease are as follows:

Business-type Activities:

2014 Water Enterprise Revenue Bond

On June 19, 2014, the City issued $1,772,092 in water enterprise revenue refunding bonds with interest at 2.59%. The City issued the bonds and paid the remaining funds to advance refund $1,790,000 of the outstanding series 2005 water enterprise revenue bonds with interest at between 4.45% and 4.75%. The bond requires annual payments ranging from $141,884 to $182,562 and are payable through December 2025. The bond bears an interest rate of 2.59%. The net proceeds were deposited in an irrevocable trust to provide for all future debt service on the refunded portion of the 2005 water revenue bonds. As a result, the 2005 water revenue bonds are considered defeased, and the City has removed the liability from its accounts. Changes in long-term debt for the year ended December 31, 2018 were as follows:

The following table represents future debt service requirements on the business-type activity debt as December 31, 2018:

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7. Retirement Plans

State of Colorado Fire and Police Pension Association - Defined Benefit Plan

Plan description. The Statewide Defined Benefit Plan is a cost-sharing multiple-employer defined benefit pension plan covering substantially all full-time employees of participating fire or police departments in Colorado hired on or after April 8, 1978 (New Hires), provided that they are not already covered by a statutorily exempt plan. As of August 1, 2003, the Plan may include clerical and other personnel from fire Citys whose services are auxiliary to fire protection. The Plan became effective January 1, 1980 and as of December 31, 2018 has 227 participating employer fire and police departments. Employers once had the option to elect to withdraw from the Plan, but a change in state statutes permitted no further withdrawals after January 1, 1988. Colorado Revised Statutes Title 31, Article 31 grants the authority to establish and amend the benefit terms to the Fire & Police Pension Association of Colorado Board of Directors. The Fire & Police Pension Association of Colorado issues a publicly available financial report that can be obtained at www.fppaco.org. Benefits provided. The annual normal retirement benefit is 2.0 percent of the average of the member’s highest three years’ base salary 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 0.0 to the higher of 3.0 percent or the Consumer Price Index. In addition, upon retirement a member may receive additional benefits credited to the member’s “Separate Retirement Account” each year after January 1, 1988. These are attributable to contributions in excess of the actuarially determined pension cost and the allocation of the net Fire & Police Members’ Benefit Investment Fund earnings and losses thereon. Members do not vest in amounts credited to their Separate Retirement Account until retirement, and the Plan may use such stabilization reserve amounts to reduce pension cost in the event such cost exceeds contributions. It was previously mentioned that reentry members have a higher contribution rate. As a result their Separate Retirement Account (“SRA”) has two components; the standard SRA and the reentry SRA. The component of a member’s SRA attributable to the higher contribution rate is considered the reentry SRA. The reentry SRA cannot be used to subsidize the costs for the non-reentry members. Effective July 1, 2016, the standard Separate Retirement Account contribution rate for members of the Fire & Police Statewide Defined Benefit Plan was set at 0.0 percent. The reentry Separate Retirement Account contribution rate was set at 3.70 percent. A member is eligible for an 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 5.0 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 2.0 percent of the member’s average highest three years’ base salary for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter.

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A member may elect to participate in the deferred retirement option plan (“DROP”) after reaching eligibility for normal retirement, early retirement, or vested retirement and age 55. A member can continue to work while participating in the DROP, but must terminate employment within 5 years of entry into DROP. The member’s percentage of retirement benefit is determined at the time of entry into the DROP. The monthly payments that begin at entry into the DROP are accumulated in a DROP account until the member terminates service, at which time the DROP accumulated benefits can be paid as periodic installments, a lump sum, or if desired, a member may elect to convert the DROP to a lifetime monthly benefit with survivor benefits. While participating in the DROP, the member continues to make pension contributions that are credited to the DROP. Effective January 1, 2003, the member shall self-direct the investments of their DROP funds. The DROP balance invested with the asset custodian at December 31, 2017 was $74,738,493. This amount was not included in the SWDBP Net Position. Contributions. The SWDBP sets contribution rates at a level that enables all benefits to be fully funded at the retirement date of all members. Contribution rates for the SWDBP 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 election of the membership. Members of the SWDBP and their employers are contributing at the rate of 9.5 percent and 8.0 percent, respectively, of base salary for a total contribution rate of 17.5 percent in 2017. In 2014, the members elected to increase the member contribution rate to the SWDBP beginning in 2015. Member contribution rates will increase 0.5 percent annually through 2022 to a total of 12.0 percent of base salary. Employer contributions will remain at 8.0 percent resulting in a combined contribution rate of 20.0 percent in 2022.

Contributions from members and employers of departments reentering the system are established by resolution and approved by the FPPA Board of Directors. The reentry group has a combined contribution rate of 21.5 percent of base salary in 2017. It is a local decision as to whether the member or employer pays the additional 4.0 percent contribution. Per the 2014 member election, the reentry group will also have their required member contribution rate increase 0.5 percent annually beginning in 2015 through 2022 for a total combined member and employer contribution rate of 24.0 percent in 2022. The contribution rate for members and employers of affiliated social security employers is 4.75 percent and 4.0 percent, respectively, of base salary for a total contribution rate of 8.75 percent in 2017. Per the 2014 member election, members of the affiliate social security group will have their required contribution rate increase 0.25 percent annually beginning in 2015 through 2022 to a total of 6 percent of base salary. Employer contributions will remain at 4 percent resulting in a combined contribution rate of 10.0 percent in 2022. In 2017, the combined member and employer contribution rate was 8.75 percent.

Contributions to the SWDB Plan from the City were $62,996 for the year ended December 31, 2018. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. At December 31, 2018, the City reported a net pension asset of $144,052 for its proportionate share of the net pension asset. The net pension asset was measured as of December 31, 2017, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of January 1, 2018. 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 Departments, actuarially determined. At December 31, 2018, the City’s proportion was 0.1001 percent, which was a decrease of 0.0288 from its proportion measured as of December 31, 2017.

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December 31, 2018

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For the year ended December 31, 2018, the City recognized pension income of $50,301 At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The $62,996 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, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Actuarial assumptions. The actuarial valuations for the SWDB were used to determine the total pension liability and actuarially determined contributions for the fiscal year ending December 31, 2017. 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

7.5% Projected salary increases 4.0 – 14.0 percent Cost of Living Adjustment 0.0 percent Inflation 2.5 percent

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Effective January 1, 2016, the post-retirement mortality tables for non-disabled retirees is a blend of the Annuitant and Employee RP-2014 generational mortality tables with blue collar adjustment projected with Scale BB. The occupationally disabled post-retirement mortality assumption uses the same table as used for healthy annuitants, except there is a three year set-forward, meaning a disabled member age 70 will be valued as if they were a 73 year old healthy retiree. The totally disabled post-retirement mortality assumption uses the RP-2014 generational mortality tables for disabled annuitants, except an additional provision to apply a minimum 3% mortality probability to males and 2% mortality probability for females is included to reflect substantial impairment for this population. The pre-retirement off-duty mortality tables are adjusted to 55% of the RP-2014 mortality tables for active employees. The on-duty mortality rate is 0.00020. 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 percent). Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2017 are summarized in the following table:

Asset Class Target Allocation

Long Term Expected Rate of Return

Global Equity 37.0% 8.33% Equity Long/Short 9.0% 7.15% Illiquid Alternatives 24.0% 9.70% Fixed Income 15.0% 3.00% Absolute Return 9.0% 6.46% Managed Futures 4.0% 6.85% Cash 2.0% 2.26% Total 100.0%

Discount rate. The discount rate used to measure the total pension liability was 7.50 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 Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the SWDB 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). For the purpose of this valuation, the expected rate of return on pension plan investments is 7.50%; the municipal bond rate is 3.31% (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 7.50%.

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December 31, 2018

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Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The following presents the City’s proportionate share of the net pension liability/(asset) calculated using the discount rate of 7.50 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 (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate: 1.00% Decrease Current Discount

Rate 1.00% Increase

City’s proportionate share of the net pension liability/(asset) $156,830 $(144,052) $(393,896)

Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Fire & Police Pension Association of Colorado financial report.

General Money Purchase Pension Plan

The City of Dacono contributes to a single employer defined contribution money purchase pension plan on behalf of all employees other than police. The contribution requirements of the General Money Purchase Pension Plan participants and the City are established and may be amended by City Council. The City contributes 8% of an employee’s salary. The City contributed $90,132, $80,521, and $82,210 for the years ended December 31, 2018, 2017 and 2016, respectively, equal to the required contribution.

8. Risk Management

The City is self insured for property and liability insurance. In order to mitigate risk, the City is a member of the Colorado Intergovernmental Risk Sharing Agency (“CIRSA”), CIRSA has a legal obligation for claims against their members to the extent that funds are available in their annually established loss fund and 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 they are not legally required to do so. Additionally, the City may receive credit on future contributions in the event of a surplus. CIRSA has entered into various excess insurance contracts to limit large losses and minimize exposure on large risks. Excess of loss contracts in effect during 2018 limit CIRSA's per occurrence exposure to $1,000,000 for property coverage, $1,000,000 for excess property coverage and provide coverage to specified upper limits. The excess of loss contract for workers' compensation coverage limits CIRSA's per occurrence exposure to $500,000 for 2018 and provides coverage to statutory limits for the State of Colorado. The City's 2018 contributions were $86,664 and share of surplus at December 31, 2018, amounted to approximately $23,757 for the property and casualty pool. The ultimate liability to the City resulting from claims not covered by CIRSA is not presently determinable. Management is of the opinion that the final outcome of such claims, if any, will not have a material adverse effect on the City's financial statements.

9. Taxes, Spending, and Debt Limitations

In November 1992, Colorado voters passed an amendment (the “Amendment” or “TABOR”) to the State Constitution (Article X, Section 20) which limits the revenue raising and spending abilities of state and local governments. The limits on property taxes, revenue, and “fiscal year spending” include allowable annual increases tied to inflation and local growth in construction valuation. Fiscal year spending, as defined by the

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Amendment, excludes spending from certain revenue and financing sources such as federal funds, gifts, property sales, fund transfers, damage awards, and fund reserve (balances). The Amendment requires voter approval for any increase in mill levy or tax rates, new taxes, or creation of multi-year debt. Revenue earned in excess of the “spending limit” must be refunded or approved to be retained by the City under specified voting requirements by the entire electorate. The Amendment also requires local governments to establish emergency reserves to be used for declared emergencies only. Emergencies, as defined by the Amendment, exclude economic conditions, revenue shortfalls, or salary of fringe benefit increase. These reserves are required to be 3% or more of fiscal year spending (excluding bonded debt service). The City has restricted $205,440 for this purpose. On November 5, 1996, voters within the City approved the collection, retention and expenditure of the full revenues generated by the City in 1996 and subsequent years for street improvement projects, capital projects, basic municipal services and/or lawful municipal purposes, notwithstanding the provisions of the Amendment. This effectively removed all revenue and spending limits imposed by TABOR.

10. Subsequent Events

The City has evaluated subsequent events through June 24, 2019, the date these financial statements were available to be issued. No transactions or events that would require adjustment to the financial statements or note disclosures were identified.

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Required Supplementary Information

Draft

Variance withFinal Budget

Actual PositiveOriginal Final Amounts (Negative)

RevenuesTaxes 3,189,545$ 3,251,675$ 3,339,582$ 87,907$ Licenses and permits 279,950 629,950 646,078 16,128 Intergovernmental 18,000 57,700 54,839 (2,861) Court 84,350 84,350 113,352 29,002 Earnings on investments 20,000 40,000 52,319 12,319 Miscellaneous 252,730 317,580 357,434 39,854

Total revenues 3,844,575 4,381,255 4,563,604 182,349

ExpendituresCurrent:

General government 2,052,490 1,930,035 1,760,222 169,813 Public safety 1,922,000 1,951,770 1,778,820 172,950 Parks and recreation 158,295 96,995 74,021 22,974

Capital outlay 42,740 70,245 144,073 (73,828)

Total expenditures 4,175,525 4,049,045 3,757,136 291,909

(330,950) 332,210 806,468 474,258

Other financing sources (uses)Transfers out (240,300) (189,000) (187,576) 1,424 Proceeds from sale of capital assets - 5,000 5,000 -

Total other financing sources (uses) (240,300) (184,000) (182,576) 1,424

(571,250)$ 148,210$ 623,892 475,682$

Fund balance at beginning of year 1,840,075

Fund balance at end of year 2,463,967$

See accompanying Independent Auditor's Report.

Net change in fund balance

Budgeted Amounts

City of Dacono, ColoradoSchedule of Revenues, Expenditures and Changes in Fund Balance


Budget and Actual - General Fund

Excess (deficiency) of revenues over expenditures

50

Draft



RevenuesTaxes 1,074,340$ 1,136,470$ 1,164,092$ 27,622$ Licenses and permits 5,000 5,000 14,000 9,000 Intergovernmental 243,140 249,640 304,058 54,418 Earnings on investments 8,000 24,000 27,942 3,942

Total revenues 1,330,480 1,415,110 1,510,092 94,982

ExpendituresPublic works 880,311 820,450 500,975 319,475 Debt service

Princpal 177,280 177,280 177,278 2 Interest 40,395 40,395 40,393 2

Capital outlay 761,565 930,900 975,701 (44,801)

Total expenditures 1,859,551 1,969,025 1,694,347 274,678

Net change in fund balance (529,071)$ (553,915)$ (184,255) 369,660$




Budgeted Amounts



Budget and Actual - Street Fund

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Draft



RevenuesImpact fees 485,600$ 485,600$ 555,671$ 70,071$ Earnings on investments 18,000 33,700 39,590 5,890

Total revenues 503,600 519,300 595,261 75,961

ExpendituresCapital outlay 150,000 150,000 134,293 15,707

Total expenditures 150,000 150,000 134,293 15,707

Net change in fund balance 353,600$ 369,300$ 460,968 91,668$




Budgeted Amounts


Budget and Actual - Impact Fee Fund


52

Draft



RevenuesTaxes 14,400$ 17,000$ 16,790$ (210)$

Total revenues 14,400 17,000 16,790 (210)

ExpendituresGeneral government 50,000 2,000 363 1,637 Capital outlay 100,000 100,000 100,000 - Debt service

Principal 92,400 92,400 95,332 (2,932) Interest 12,300 12,300 8,308 3,992


Other financing sources Transfers in 240,300 189,700 187,576 (2,124)

Other financing sources 240,300 189,700 187,576 (2,124)

Net change in fund balance -$ -$ 363 363$

Fund balance at beginning of year -

Fund balance at end of year 363$


Budgeted Amounts


Budget and Actual - Economic Development Authority Fund


53

Draft



RevenuesTaxes 185,565$ 199,370$ 205,384$ 6,014$ Earnings on investments 2,100 2,900 3,281 381

Total revenues 187,665 202,270 208,665 6,395

ExpendituresDebt service:

Principal 213,190 200,210 172,206 28,004 Interest 5,572 18,870 18,866 4 Capital outlay 156,000 240,085 194,460 45,625


Deficiency of revenues over expenditures (187,097) (256,895) (176,867) 80,028

Other financing sourcesProceeds from capital lease 112,000 140,000 96,386 (43,614)

Total other financing sources 112,000 140,000 96,386 (43,614)

Net change in fund balance (75,097)$ (116,895)$ (80,481) 36,414$

Fund balance at beginning of year 261,644

Fund balance at end of year 181,163$


Budgeted Amounts


Budget and Actual - Capital Equipment Fund


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Draft

2018 2017 2016 2015 2014

FPPA - Defined Benefit Plan

City's proportion of the net pension liability/(asset) (144,052)$ 46,589$ (2,028)$ (124,456)$ (137,851)$

0.1001% 0.1289% 0.1150% 0.1103% 0.1098%

City's covered payroll 639,365$ 635,190$ 533,488$ 495,913$ 476,888$

22.53% 7.33% 0.38% 25.10% 28.91%

106.30% 98.21% 100.10% 106.80% 105.80%

* The amounts presented for each fiscal year were determined as of December 31 of the prior year.


Pension schedules are intended to show information for ten years, additional years' information will be displayed as itbecomes available.

City of Dacono, ColoradoSchedule of the City's Proportionate Share of the Net Pension Liability/(Asset)

Last Ten Years

City's proportionate share of the net pension liability/(asset)

City's proportionate share of the net pension liability/(asset) as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension

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Draft

2018 2017 2016 2015 2014 2013

FPPA - Defined Benefit Plan

Statutorily Required Contribution 62,996$ 51,149$ 50,815$ 42,679$ 39,673$ 38,151$

62,996 51,149 50,815 42,679 39,673 38,151

Contribution Deficiency (Excess) - - - - - -

Covered payroll 787,450$ 639,365$ 635,190$ 533,488$ 495,913$ 476,888$

8.00% 8.00% 8.00% 8.00% 8.00% 8.00%


Pension schedules are intended to show information for ten years, additional years' information will be displayed as itbecomes available.

Contributions as a Percentage of Covered Payroll

City of Dacono, ColoradoSchedule of City Contributions

Last Ten Years

Contributions in Relation to the Statutorily Required Contribution

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Other Supplementary Information

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RevenuesIntergovernmental 22,000$ 22,000$ 25,354$ 3,354$ Earnings on investments 50 50 26 (24)

Total revenues 22,050 22,050 25,380 3,330

ExpendituresCapital outlay 10,000 13,000 4,317 8,683


Net change in fund balance 12,050$ 9,050$ 21,063 12,013$

Fund balance at beginning of year 14,542

Fund balance at end of year 35,605$


Budgeted Amounts


Budget and Actual - Conservation Trust Fund


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Draft



RevenuesWater sales 1,733,050$ 1,733,050$ 1,885,832$ 152,782$ Trash charges 270,000 270,000 256,922 (13,078) Tap fees and other contributions 303,125 303,125 858,438 555,313 Earnings on investments 40,000 80,000 92,405 12,405 Miscellaneous income 12,730 12,730 13,970 1,240

Total revenues 2,358,905 2,398,905 3,107,567 708,662

Budgetary expendituresWater distribution and trash collection 775,435 676,630 641,628 35,002 General and administrative 818,310 925,985 910,987 14,998 Debt Service

Principal paid 151,165 151,165 148,886 2,279 Interest 32,750 32,750 33,068 (318)

Capital outlay 248,975 448,975 278,268 170,707

Total operating expenses 2,026,635 2,235,505 2,012,837 222,668

332,270$ 163,400$ 1,094,730 931,330$

Reconciliation to GAAP basisDepreciation (310,403) Capital outlay 278,268 Capital contributions 4,551,527 Principal paid 148,886

Change in net position - GAAP basis 5,763,008

Net position at beginning of year 21,456,692

Net position at end of year 27,219,700$


Excess (deficiency) of revenues over expenditures

Budgeted Amounts

City of Dacono, ColoradoSchedule of Revenues, Expenses and Changes in Net Position

Budget and Actual (Non-GAAP Basis) - Water Fund


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Draft

State Compliance

Draft

Financial Planning 02/01The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36

City or County:

YEAR ENDING :December 2018

This Information From The Records Of (example - City of _ or County of Prepared By: Phone:

A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway

Taxes Taxes User Taxes Administration1. Total receipts available2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes

AMOUNT AMOUNTA. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 975,701 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 31,582 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 9,274 2. General fund appropriations b. Snow and ice removal 10,959 3. Other local imposts (from page 2) 1,218,947 c. Other 13,125 4. Miscellaneous local receipts (from page 2) 41,942 d. Total (a. through c.) 33,358 5. Transfers from toll facilities 4. General administration & miscellaneous 436,035 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 1,476,676 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 40,393 7. Total (1 through 6) 1,260,889 b. Redemption 177,278B. Private Contributions c. Total (a. + b.) 217,671C. Receipts from State government 2. Notes: (from page 2) 249,203 a. InterestD. Receipts from Federal Government b. Redemption (from page 2) 0 c. Total (a. + b.) 0E. Total receipts (A.7 + B + C + D) 1,510,092 3. Total (1.c + 2.c) 217,671

C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D) 1,694,347

Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total) 1,559,594 177,278 1,382,316 1. Bonds (Refunding Portion)B. Notes (Total) 0

A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation1,534,367 1,510,092 1,694,347 1,350,112 0

Notes and Comments:

FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page)59

ITEM AND STREET PURPOSES

LOCAL HIGHWAY FINANCE REPORT

I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE

ITEM

III. DISBURSEMENTS FOR ROAD

V. LOCAL ROAD AND STREET FUND BALANCE

ITEM

II. RECEIPTS FOR ROAD AND STREET PURPOSES

IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par)

Highway Report

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STATE:ColoradoYEAR ENDING (mm/yy):December 2018

AMOUNT AMOUNTA.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 217,988 a. Interest on investments 27,942 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes 924,220 c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 14,000 5. Specific Ownership &/or Other 76,739 g. Other Misc. Receipts 6. Total (1. through 5.) 1,000,959 h. Other c. Total (a. + b.) 1,218,947 i. Total (a. through h.) 41,942

(Carry forward to page 1) (Carry forward to page 1)

AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 227,319 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 21,884 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 21,884 g. Total (a. through f.) 0 4. Total (1. + 2. + 3.f) 249,203 3. Total (1. + 2.g)

(Carry forward to page 1)

ON NATIONAL OFF NATIONALHIGHWAY HIGHWAY TOTALSYSTEM SYSTEM

(a) (b) (c)A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 27,284 30,884 c. Construction: (1). New Facilities 21,445 17,845 (2). Capacity Improvements 59,913 59,913 (3). System Preservation 832,387 832,387 (4). System Enhancement & Operation 34,672 34,672 (5). Total Construction (1) + (2) + (3) + (4) 0 948,417 948,417 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 975,701 975,701

(Carry forward to page 1)

Notes and Comments:

FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE60

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL

II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL

LOCAL HIGHWAY FINANCE REPORT

ITEM ITEM

ITEM ITEMDraft

Agenda Item No. VI - B Meeting Date: 06-24-2019

Subject: Consideration and Approval of Ordinance 870, Adopting by Reference the 2010 Model Traffic Code with Amendments, on First Reading.

Presented by: Matthew B. Skaggs Chief of Police

Background: Passage of this Ordinance will formally adopt by reference the 2010 Model Traffic Code. The Model Traffic Code for municipalities is essentially a version of certain aspects of the state traffic code that enables municipalities to enforce established traffic laws consistent with state law, within the jurisdictional boundaries and authority of the adopting municipality. Municipalities, particularly home rule municipalities, may adopt the code entirely, revise, amend or omit sections of the code at the municipalities sole discretion. In addition, revisions to the Ordinance include changes to this section of the code as follows;

- Fines doubled for school and construction zones with proper signage - No parking trailers, campers, semitrailers, recreational vehicles, or mobile homes on City streets - except for visitation purposes with a 72-hour limit - except for loading with a 24-hour limit - No overnight sleeping in trailers, campers, semitrailers, recreational vehicles, or mobile homes on City

streets, private streets, public or private property - except for visitation purposes with a 72-hour limit - Designated Truck Routes designed to keep truck traffic from going through subdivisions and on

appropriate roads - route map designated by Council Resolution - Permits for oversized and overweight vehicles

staff still researching appropriate fee - Permits for oil and gas rig transportation

staff still researching appropriate fee - No parking on streets designated as “No Parking”

streets to be designated by Council Resolution generally, in industrial and commercial areas (Laura Way, Laura Court, Bryant Court, Thomas Court, 8th Street (?)

- Idling restrictions - Motor vehicle sale and repair prohibited in parking areas and public rights-of-way - Parking on private property

allowed on an improved surface, section defines that term The 2010 Model Traffic Code and the aforementioned amendments were discussed at the last city council work session.

Recommended Action: Approval of Ordinance 870, Adopting by Reference the 2010 Model Traffic Code with Amendments, on First Reading.

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ORDINANCE NO. 870

AN ORDINANCE ADOPTING BY REFERENCE THE 2010 EDITION OF THE MODEL TRAFFIC CODE FOR COLORADO, WITH AMENDMENTS, AND SETTING FORTH ADDITIONAL REGULATIONS CONCERNING VEHICLES AND TRAFFIC.

WHEREAS, the Model Traffic Code for Colorado, published by the Colorado Department of Transportation and revised in 2010, embodies the rules of the road and vehicle requirements as set forth in Article 4 of Title 42 of the Colorado Revised Statutes; and

WHEREAS, §42-4-110(1) of the Colorado Revised Statutes authorizes local authorities to adopt by reference all or any part of the Model Traffic Code for Colorado; and

WHEREAS, §42-4-110 and §42-4-111 of the Colorado Revised Statutes authorizes local authorities to enact and enforce traffic regulations on roads and streets anywhere within their jurisdiction; and

WHEREAS, the City desires to adopt the 2010 revised edition of the Model Traffic Code for Colorado, with amendments, and to set forth penalties for violations thereof; and

WHEREAS, the City further desires to amend Chapter 8 of the Dacono Municipal Code to set forth additional regulations concerning vehicles and traffic.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DACONO, COLORADO:

Section 1. Section 8-2 of the Dacono Municipal Code is hereby repealed and reenacted to read as follows:

Sec. 8-2. Adoption.

Pursuant to Parts 1 and 2 of Article 16 of Title 31, C.R.S., there is hereby adopted by reference Articles I and II inclusive of the 2010 edition of the Model Traffic Code for Colorado Municipalities, promulgated and published as such by the Colorado Department of Transportation, Safety and Traffic Engineering Branch, 4201 East Arkansas Avenue, EP 700, Denver, Colorado 80222. The subject matter of the Model Traffic Code relates primarily to comprehensive traffic control regulations for the city. The purpose of the ordinance codified herein and the code adopted herein is to provide for a system of traffic regulation consistent with state

2

law and generally conforming to similar regulations throughout the state and the nation. Three (3) copies of the Model Traffic Code adopted herein are now filed in the office of the city clerk, and may be inspected during regular business hours. Section 2. Section 8-3 of the Dacono Municipal Code is hereby repealed and

reenacted, to read as follows: Sec. 8-3. Code conflicts. The provisions of the Dacono Municipal Code shall control in the event of any conflict between the 2010 revised edition of the Model Traffic Code and the Dacono Municipal Code. Section 3. Section 8-4 of the Dacono Municipal Code is hereby repealed and reenacted

to provide for the following adoptions, modifications, or deletions to the Model Traffic Code adopted by this ordinance, to read as follows:

Sec. 8-4. Additions or modifications. The following additions, amendments or deletions are made to Article I of the Model Traffic Code: (1) Subsection (1) of Section 615, School zones - increase in penalties for moving traffic violations, is amended to read as follows:

(1) Penalties and surcharges will be doubled for any person convicted of a traffic infraction or a traffic offense in a school zone.

(2) Subsection (1)(b) of Section 614, Designation of highway maintenance, repair, or construction zones - signs - increase in penalties for speeding violations, is amended to read as follows:

(b) If maintenance, repair, or construction activities are occurring or will occur within four hours on a portion of a roadway that is not a state highway, the City may designate such portion of the roadway as a maintenance, repair, or construction zone. Penalties and surcharges will be doubled for any person convicted of a traffic infraction or a traffic offense in a maintenance, repair, or construction zone that is designated pursuant to this section.

Nick Cotton-Baez

The MTC specifies how construction zones may be designated: (2) Local authorities, within their jurisdiction, shall designate a maintenance, repair, or construction zone by erecting or placing an appropriate sign in a conspicuous place before the area where the maintenance, repair, or construction activity is taking place or will be taking place within four hours. Such sign shall notify the public that increased penalties for certain traffic violations are in effect in such zone. Local authorities shall erect or place a second sign after such zone indicating that the increased penalties for certain traffic violations are no longer in effect. A maintenance, repair, or construction zone begins at the location of the sign indicating that increased penalties are in effect and ends at the location of the sign indicating that the increased penalties are no longer in effect. (3) Signs used for designating the beginning and end of a maintenance, construction, or repair zone shall conform to department of transportation requirements. Local authorities may display such signs on any fixed, variable, or movable stand. Local authorities may place such a sign on a moving vehicle if required for certain activities, including, but not limited to, highway painting work. Subsections (2) and (3) (above) would be adopted by this ordinance.

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(3) Section 1212, Parking of Certain Vehicles in Right-of-Way Prohibited, is added to read as follows:

Section 1212. Parking of Certain Vehicles Prohibited in Right-of-Way. (a) Except as provided in subsection (b), as defined herein, no trailer, camper trailer, trailer coach, camper coach, semitrailer, recreational vehicle, or mobile home, whether attached or detached from a motor vehicle, shall be parked on any public right-of-way in the City. (b) Exceptions: (1) Municipal vehicles and trailers. (2) For visitation purposes not exceeding seventy-two (72) hours. (3) For loading of the vehicle not exceeding twenty-four (24) hours.

(4) Section 1213, Restrictions on Overnight Sleeping in Motor Vehicles, is added to read as follows:

Section 1213. Restrictions on Overnight Sleeping in Motor Vehicles. (a) Except as provided in subsection (b), no motor vehicle, bus, trailer coach, camper coach, mobile home, self-propelled motor home, or recreational vehicle shall be used for sleeping overnight on any public or private street, public right-of-way, or public or private property within the City. (b) Persons visiting a residence within the City may sleep overnight in a bus, trailer coach, camper coach, mobile home, self-propelled motor home, or recreational vehicle on a public or private street, public right-of-way, or public or private property within the City for no longer than seventy-two (72) hours.

(5) Section 1416, Restrictions on Motorized Traffic, is added to read as follows:

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Section 1416. Restrictions on Motorized Traffic. No person shall operate any automobile, bus, motor vehicle, motor-driven cycle, motorized bicycle, motor scooter, motor bicycle, road machinery, road tractor, tractor, dirt bike, snowmobile, or any other motor-driven apparatus on any public or private property in the City, including but not limited to trails and walkways, unless such property has been dedicated or maintained as a public or private road, street, alley, highway, roadway or other area for the use of motorized vehicles, and unless operation on such property is not otherwise prohibited under the Model Traffic Code or other provisions of the Dacono Municipal Code. Motorized apparatus used for maintenance by City employees or by contractors with the City are excepted.

(6) Section 1701, Municipalities - Traffic Offenses Classified - Schedule of Fines, is amended to read as follows:

Section 1701. Municipalities - Traffic Offenses Classified - Schedule of Fines. (1) It is a traffic offense for any person to violate any provision of this Code. (2) Pursuant to C.M.C.R. 210(b)(4), the court may by order, which may from time to time be amended, supplemented or repealed, designate the traffic offenses, the penalties, fines and costs for which shall be payable at, receipted by and accounted for at the office of the City Clerk. (3) The court shall, in addition to any other notice, by published order to be prominently posted in a place where fines are to be paid, specify by suitable schedules the amount of fines to be imposed for violations, designating each violation specifically in the schedules. Such fines will be within the limits set by ordinance. (4) Penalties, fines and costs shall be payable at, receipted by, and accounted for at the office of the City Clerk.

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(7) Section 1709, Penalty Assessment Notice for Traffic Offenses - Violations of Provisions by Officer - Driver's License, is repealed and reenacted to read as follows:

Section 1709. Penalty Assessment Notice for Traffic Offenses - Refusal. Whenever the defendant refuses to accept service of the penalty assessment notice, tender of such notice by the peace officer to the defendant shall constitute service thereof upon the defendant.

(8) The following sections of the Model Traffic Code are not adopted and are hereby deleted therefrom: Section 227(3)(b); Section 1402(2); Section 1412(10)(d); Subsections (1)(d), (1)(e) and (1)(f) of Section 1705; Section 1903(6)(b); and Section 1904. Section 4. Section 8-5 of the Dacono Municipal Code is hereby repealed and

reenacted, to read as follows: Sec. 8-5. All-terrain vehicle restrictions and exceptions. (a) Defined. For purposes of this chapter, all-terrain vehicle means a self-propelled wheeled or tracked vehicle primarily designed to be operated for recreational purposes on land, or on land and water, other than roads or highways. This definition shall include, but is not limited to, motorbikes, motor scooters, mopeds, motor bicycles, trail bikes, tote-goats, dune buggies, go-carts, snowmobiles, and three and four wheelers. All-terrain vehicle does not include any self-propelled wheeled or tracked vehicle equipped with all required safety equipment and licensed by the State. All-terrain vehicle does not include any low-power scooter or low-speed electric vehicle, as those terms are defined in the 2010 edition of the Model Traffic Code, as adopted by reference by the City. (b) Restrictions. (1) Except as provided in subsection (c), it shall be unlawful for any person to operate any all-terrain vehicle, whether registered or unregistered, on any public street, road, highway, right-of-way, alley, sidewalk, public parking lot, privately owned parking lot open to the public, park, open space or other public area within the City.

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(2) Except as provided in subsection (c), it shall be unlawful for any person to operate any all-terrain vehicle, whether registered or unregistered, on any private property within the City. (3) It shall be unlawful for any parent, guardian or any adult to authorize, assist, permit or encourage any minor to operate any all-terrain vehicle in violation of the provisions of this Section. (c) Exceptions. This Section shall not apply to: (1) The operation of all-terrain vehicles on private property by the owner of such private property or by a person having specific permission of the owner of the property to operate an all-terrain vehicle on the owner’s property. The operation of an all-terrain vehicle on private property shall not generate noise or dust pollution, erosion or fire hazards on such property or neighboring properties. (2) The operation of golf carts in areas maintained and zoned or approved for golf cart use. (3) The operation of all-terrain vehicles during emergency conditions declared by the proper state or local authority. (4) The operation of all-terrain vehicles that are authorized service vehicles used for snow removal or for other municipal purposes. Authorized service vehicles shall be limited to City vehicles and City contractor vehicles used for municipal purposes, and all-terrain vehicles owned and operated by the City or a private business engaged in the business of snow removal. For purposes of this Section, the use of all-terrain vehicles by a private business engaged in the business of snow removal shall be limited to removal of snow on streets, sidewalks, driveways and parking lots. (5) A motorized wheelchair used for transportation purposes by a handicapped, infirm or disabled person. The operator of a motorized wheelchair shall ensure that the wheelchair is equipped with a flag on a whip antenna. The flag shall be made of reflective material of such size and color to be visible from a distance of one hundred (100) feet to the front or rear of the wheelchair, regardless of weather conditions.

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(6) The operation of a recreational vehicle for agricultural purposes on the private property owned or leased by the operator of the recreational vehicle or any person employed by such owner. (7) Any person granted an exception in writing by the City Manager or the City Manager’s designee. Section 5. Section 8-6 of the Dacono Municipal Code is hereby repealed and

reenacted, to read as follows: Sec. 8-6. Designation of truck routes, maps. (a) The City Council shall have the authority to designate by resolution those streets, highways, public ways or any portion thereof upon which trucks shall operate, to be reflected as "Designated Truck Routes" on the Designated and Restricted Truck Route Map. The City Council shall have the authority to restrict by resolution the operation of certain trucks upon streets, highways, public ways or portions thereof, to be reflected as "Restricted Truck Routes" on the Designated and Restricted Truck Route Map. Such designations and restrictions shall be made upon the recommendation of the City Engineer or the Engineer’s designee and shall be based upon traffic engineering investigations and studies, environmental considerations and neighborhood characteristics of affected areas. Such designations and restrictions shall be passed by resolution of the City Council, and failure of any person to comply with such resolution shall constitute a violation of this article. (b) The City Engineer or the Engineer’s designee shall maintain in his or her office the Designated and Restricted Truck Route Map. Copies of such map shall be made available to the public through the office of the City Clerk. (c) The City Engineer or the Engineer’s designee shall post with appropriate signs all Designated Truck Routes. The City Engineer or the Engineer’s designee may also, in the City Engineer or the Engineer’s designee’s discretion, post Restricted Truck Routes with appropriate signs.

Section 6. Article 1 of Chapter 8 of the Dacono Municipal Code is hereby amended by the addition of a new Section 8-7, to read as follows:

8-7. Height, length and weight of vehicles.

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(a) No person shall drive, move, stop or park on any public or private street, highway, highway structure any vehicle or vehicles of a size, weight or load that exceeds that allowed for such vehicle or vehicles under Sections 42-4-502 through 42-4-509, C.R.S., and the Model Traffic Code, Sections 507 and 508. (b) No person shall drive, move, stop or park on any public or private street, highway, highway structure any vehicle or vehicles of a weight of more than twenty-six thousand (26,000) Gross Vehicle Weight Rating (GVWR) pounds. (c) Subsections (a) and (b) notwithstanding, the vehicles and equipment specified in section 8-9(e) shall not be subject to the size and weight provisions of this article.


8-8. Defenses. (a) It is a specific defense to a charge of violating section 8-7 that the driving, moving, stopping and parking was on a state highway and in compliance with the terms of a permit issued in accordance with Section 42-4-510, C.R.S. (b) It is a specific defense to a charge of violating section 8-7 that the driving, moving, stopping and parking occurred on a street that was not a state highway and was in compliance with a permit issued under the provisions of section 8-9 of this Code.


8-9. Permits for oversized and overweight vehicles. (a) Notwithstanding any provision of the Model Traffic Code, the City Engineer or the Engineer’s designee is authorized to issue permits for oversize and overweight vehicles in accordance with this Section; provided that, persons operating overweight vehicles shall comply with any resolution passed by the City Council pursuant to Section 8-6. (b) The City Engineer or the Engineer’s designee may, upon application in writing and good cause being shown therefor, issue a single trip, daily, special

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or annual permit, in writing, authorizing the applicant to operate or move a vehicle, or combination of vehicles, of a size or weight of vehicle or load exceeding the maximum limits specified in this Article or otherwise not in conformity with the provisions of this Article. The application for any permit shall specifically describe: (1) the vehicle and load to be operated or moved; (2) the particular street or streets for which the permit to operate is requested; (3) whether such permit is for a single trip, daily, special or annual operation; (4) the maximum axle load; (5) the length of the vehicle between and including the front and rearmost bumper; (6) the height of the vehicle; (7) the approximate time(s) of such movement; and (8) such other information as the City Engineer or the Engineer’s designee may reasonably require. (c) The City Engineer or the Engineer’s designee is authorized to issue or withhold a permit, as required by this Section. The City Engineer or the Engineer’s designee may withhold a permit if the applicant fails to include any information required pursuant to subsection (b), or fails to post the bond as required pursuant to this subsection (c). The City Engineer or the Engineer’s designee may also withhold a permit if the City Engineer or the Engineer’s designee determines in his or her reasonable discretion that issuing the permit would endanger public health, safety or welfare. The City Engineer or the Engineer’s designee may add conditions to any permit to limit the number of trips, or to establish other time limitations within which the vehicle(s) described may be operated on the streets indicated or otherwise to limit or prescribe conditions of operation of such vehicles when necessary to protect the safety of highway and street users, to protect the efficient movement of traffic from unreasonable interference or to protect the highways and streets from undue damage to the road foundations, surfaces or structures. In addition, unless waived by the City Engineer or the Engineer’s designee for good cause, the owner of a vehicle requiring a permit shall provide to the City a bond in an amount to be determined by the City Engineer or the Engineer’s designee, but not less than two-thousand five-hundred dollars ($2,500.00), as security for damage to streets, highways or highway structures within the City. (d) Every such permit shall be carried in the vehicle or combination of vehicles to which it refers and shall be open to inspection by any police officer or any authorized agent of the City, and no person shall violate any terms or conditions of such permit.

Nick Cotton-Baez

Needs to increase – City to determine

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(e) No permit shall be necessary for the following vehicles, and the vehicles or equipment specified in this Subsection (e) shall not be subject to size and weight provisions of this Article. (1) Authorized emergency vehicles. (2) Vehicles operated by local governments or political subdivisions. (3) Implements of husbandry and farm tractors temporarily moved upon the highway or street, including transportation of such tractors or implements by a person dealing therein to his or her place of business within the State or to the premises of a purchaser or prospective purchaser within the State. (4) Vehicles for refuse hauling purposes lawfully operating within the City pursuant to, and meeting the vehicle requirements set forth in, section 6-21 of this Code. (f) The City Engineer or the Engineer’s designee shall charge permit fees as follows: (1) For over-length, over-width and over-height permits on loads of vehicles which do not exceed legal weight limits set forth in Sections 42-4-502 through 42-4-508, C.R.S., and the Model Traffic Code, Sections 507 and 508: a. Annual permit, as set forth in the fee schedule adopted by resolution of the City Council. b. Daily permit, as set forth in the fee schedule adopted by resolution of the City Council. c. Single trip permit, as set forth in the fee schedule adopted by resolution of the City Council. (2) For overweight permits for vehicles or loads exceeding the legal weight limits set by Sections 42-4-502 through 42-4-508, C.R.S., and the Model Traffic Code, Sections 507 and 508, up to two hundred thousand (200,000) pounds:

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a. Daily permit, as set forth in the fee schedule adopted by resolution of the City Council. b. Single trip permit, as set forth in the fee schedule adopted by resolution of the City Council. (3) Special permits for structural, oversized or overweight moves requiring extraordinary City action or moves involving weight in excess of two hundred thousand (200,000) pounds, as set forth in the fee schedule adopted by resolution of the City Council. In addition, unless waived by the City Engineer or the Engineer’s designee for good cause, the owner of a vehicle requiring a special permit shall provide to the City a bond in an amount to be determined by the City Engineer or the Engineer’s designee, but not less than two-thousand five-hundred dollars ($2,500.00), as security for damage to streets, highways or highway structures within the City. (4) For overweight permits for vehicles or loads exceeding legal weight limits on restricted truck routes of more than twenty-six thousand (26,000) Gross Vehicle Weight Rating (GVWR) pounds, but not exceeding the weight limits set in Sections 42-4-502 through 42-4-508, C.R.S., and the Model Traffic Code, Sections 507 and 508: a. Annual permit, as set forth in the fee schedule adopted by resolution of the City Council. b. Daily permit, as set forth in the fee schedule adopted by resolution of the City Council. c. Single trip permit, as set forth in the fee schedule adopted by resolution of the City Council. d. Annual fleet permit, as set forth in the fee schedule adopted by resolution of the City Council. For the purposes of this subsection, “fleet” means any group of two (2) or more vehicles owned by one (1) person. (g) The provisions of this Article shall not apply to the National System of Interstate and Defense Highways.

Nick Cotton-Baez

Needs to increase; City to determine

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8-10. Liability for damage to streets, highways or highway structures. (a) No person shall drive, operate or move upon or over any street, highway or highway structure any vehicle, object or contrivance in such manner so as to cause damage to said street, highway or highway structure. When the damage sustained to said street, highway or highway structure is the result of the operating, driving or moving of such vehicle, object or contrivance weighing in excess of the maximum weight authorized by Sections 42-4-501 to 42-4-512 , C.R.S., Model Traffic Code, Sections 507 and 508, or Section 8-7 of this Code, it shall be no defense to any action, either civil or criminal, brought against such person that the weight of the vehicle was authorized by special permit issued in accordance with Sections 42-4-501 to 42-4-512, C.R.S., Model Traffic Code Sections 507 and 508, or Section 8-9 of this Code. (b) Any person who violates the provisions of subsection (a) above shall be liable for all damage caused to a City street, highway or highway structure as a result of such violation. Whenever the driver of a vehicle, object or contrivance is not the owner thereof, but is operating, driving or moving such vehicle, object or contrivance with the express or implied consent of the owner thereof, then said owner and driver shall be jointly and severally liable for all damage caused to a City street, highway or highway structure as a result of such person’s violation of subsection (a). The liability for damage sustained by any such street, highway or highway structure may be enforced by a civil action by the City or other authority in control of such street, highway or highway structure. No satisfaction of such civil liability, however, shall be deemed to be a release or satisfaction of any penalties for violation of this chapter 8.


8-11. Oil and Gas Rig Definition. Oil and gas rig or drilling rig means the complex of equipment commonly used for the initial drilling of an oil and/or gas well. The oil and gas rig or drilling rig is commonly broken into multiple truck loads for transport to and from a well site.

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8-12. Oil and Gas Rig Transportation Permit and Bond Requirement. (a) An Oil and Gas Rig Transportation Permit is required prior to moving a drilling rig within the City. The permit, when issued, is valid only on those roads under the jurisdiction of the City. To operate on roads under other jurisdictions, (state highways and county roads) it may be necessary to obtain a separate permit from the authorities having jurisdiction thereover. By issuing the Oil and Gas Rig Transportation Permit, the City will waive the required oversize or overweight permits for the truck carrying the Oil and Gas Rig equipment. A new permit shall be obtained each time the rig is moved. The permit fee for an Oil and Gas Rig Transportation Permit is as set by the fee schedule adopted by resolution. In addition, each applicant for a permit for the transport of the oil and gas rig shall provide to the City a bond in an amount to be determined by the City Engineer or the Engineer’s designee, but not less than ________________ dollars ($_______.00), as security for damage to streets, highways or highway structures within the City. The City may also require the applicant for an Oil and Gas Rig Transportation Permit to pay the cost of a roadway impact study by an independent entity utilizing best engineering practices to determine the impact the oil and gas rig transport may have City roadways. The timeframe for conducting the study shall be specified in the permit. The City may increase or decrease the bond amount depending on the result of such study. (b) Nothing in this Code is intended or shall be construed to exempt trucks transporting Oil and Gas Rig equipment from the provisions of Sections 8-6 and 8-10 of this Code. Section 12. Article 1 of Chapter 8 of the Dacono Municipal Code is hereby amended by

the addition of a new Section 8-13, to read as follows: Sec. 8-13. Parking on certain streets prohibited. No person shall be permitted to park any vehicle on streets marked with signage prohibiting parking thereon. Section 13. Article 1 of Chapter 8 of the Dacono Municipal Code is hereby amended by

the addition of a new Section 8-14, to read as follows:

Nick Cotton-Baez

City to determine

Nick Cotton-Baez

Truck routes

Nick Cotton-Baez

Liability for damage to streets

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Sec. 8-14. Idling restriction. (a) No person shall allow a motor vehicle to idle for more than ten (10) minutes in any one-hour period unless: (1) The ambient outside air temperature has been less than twenty (20) degrees Fahrenheit for each hour of the previous twenty-four (24) hour period, in which case the such person may allow a vehicle to idle for not more than fifteen (15) minutes in any one-hour period; or (2) The latest hourly ambient outside air temperature is less than ten (10) degrees Fahrenheit, in which case the such person may allow a vehicle to idle for not more than fifteen (15) minutes in any one-hour period. (b) Subsection (a) notwithstanding, no person shall allow any vehicle to idle for more than five (5) minutes between the hours of 10:00 p.m. and 7:00 a.m. (c) The idling restrictions in subsection (a) shall not apply to vehicles making deliveries or pickups, provided that such deliveries or pickups do not exceed thirty (30) minutes. (d) The idling restrictions in subsections (a) and (b) shall not apply to emergency vehicles; to vehicles engaged in traffic control operations; to vehicles that are being serviced; to vehicles that must idle to operate auxiliary equipment, including but not limited to pumps, compressors or refrigeration units. (e) The idling restrictions in subsections (a) and (b) shall not apply when idling is necessary while stopped for an official traffic control device; for an official traffic control sign; at the direction of a peace officer; for traffic conditions over which the driver has no control, including but not limited to being stopped in a line of traffic, at a railroad crossing, or in a construction zone; or to operate defrosters, heaters, air conditions or other equipment to prevent a safety or health emergency, but not solely for the comfort of the driver or passengers. (f) The idling restrictions in subsections (a) and (b) apply to transportation vehicles, except that the time during which transportation vehicles are actively loading or discharging passengers may not be included in the computation of the time limitations provided for in subsections (a) and

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(b). A transportation vehicle shall be defined for purposes of this section to mean motor vehicles designed to transport a minimum of sixteen (16) persons. (g) This idling restrictions of this section shall apply regardless of whether the idling vehicle is on public or private property.


Sec. 8-15. Designation of emergency snow routes and posting of signs. (a) For purposes of this section, emergency snow route means all streets and highways designated as an "emergency snow route" by resolution of the City Council and for which a sign or signs have been posted in accordance with this Chapter. (b) The City Council may designate or change emergency snow routes within the City by resolution based upon the City Council’s determination as to which streets or highways should be free of parked, stopped or stalled vehicles when a snowstorm condition or severe snowstorm condition has been declared in accordance with the provisions of this Chapter, in order to facilitate snow removal. (c) Along each street or highway entering the City, and which has been designated an emergency snow route, the City Engineer or the Engineer’s designee shall cause to be posted traffic signs indicating that the street or highway has been designated an emergency snow route and that parking prohibitions shall apply. The lack of visibility of any such sign when parking restrictions are in effect shall not excuse the owner or operator of any vehicle from complying with the provisions of this Chapter. (d) Whenever there are three (3) or more inches of non-drifted snow or enough sleet, snow or ice to cause a solid coating of sleet, snow or ice on any street designated an emergency snow route in the City, no owner of a motor vehicle or person in charge of a motor vehicle operated within the City limits shall allow the vehicle to remain parked, abandoned, standing or stopped on such street or highway. Any vehicle found parked, abandoned, standing or stopped on such street or highway is subject to removal and impoundment.

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(e) In addition to the City’s towing authority set forth in subsection (d) above, any person convicted of or who pleads guilty or no contest to subsection (d) above shall be guilty of a traffic infraction.


8-16. Snow removal; no liability for City. (a) The City and its officers, employees, contractors and agents shall not be liable for any costs or damages resulting from any act or omission in any way connected with or related to snow removal or the removal or impoundment of a vehicle pursuant to this Chapter. (b) The City may elect from time to time to repair or pay for damage to private real or personal property. Such action shall in no way set a precedent or create the requirement to take such action.


8-17. Commercial operators. Persons operating private snowplows within the City limits shall completely clean all snow pushed onto the City streets and be liable for all damages which they cause to City property.


Sec. 8-18. Motor vehicle sale and repair prohibited in parking areas and public right-of-way. (a) Except as provided in subsection (b), no person shall (i) offer for sale, sell, offer for lease, lease, store, repair, dismantle, or service a motor vehicle, or (ii) knowingly allow another person to offer for sale, sell, offer for lease, lease, store, repair, dismantle, or service a motor vehicle, in a public or private parking area, on a private street, or in public right-of-way within the city.

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(b) Subsection (a) is not intended and shall not be construed to prohibit (i) the sale or servicing by an owner of a motor vehicle parked in compliance with this chapter 8 on the owner’s property, or (ii) the sale, storage, repair, dismantling, or servicing of any motor vehicles on the premises of a licensed auto dealer or auto repair shop.


Sec. 8-19. Open marijuana containers and marijuana consumption in motor vehicle prohibited. (1) Except as otherwise permitted in subsection (2) of this Section, a person while in the passenger area of a motor vehicle that is on a public highway of this state or the right-of-way of a public highway of this state may not knowingly: (a) Use or consume marijuana; or (b) Have in his or her possession an open marijuana container. (2) The provisions of subsection (1) shall not apply to: (a) Passengers, other than the driver or a front seat passenger, located in the passenger area of a motor vehicle designed, maintained, or used primarily for the transportation of persons for compensation; (b) The possession by a passenger, other than the driver or a front seat passenger, of an open marijuana container in the living quarters of a house coach, house trailer, motor home, as defined in C.R.S. Section 42-1-102 (57), or trailer coach, as defined in C.R.S. Section 42-1-102 (106) (a); (c) The possession of an open marijuana container in the area behind the last upright seat of a motor vehicle that is not equipped with a trunk; or (d) The possession of an open marijuana container in an area not normally occupied by the driver or a passenger in a motor vehicle that is not equipped with a trunk. Section 19. Article 1 of Chapter 8 of the Dacono Municipal Code is hereby amended by

the addition of a new section 8-20, to read as follows:

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Sec. 8-20. Parking on private property within the City. No person shall park on private property except on an improved surface. For purposes of this section, improved surface means a surface comprised of asphalt, concrete, brick, cement pavers, or similar materials installed and maintained according to industry standards. The term improved surface does not include compacted/crushed stone, compacted gravel, landscape mulch or similar material, or recycled asphalt. Parking on lawns, whether public or private, is expressly prohibited within the city. Section 20. Article 1 of Chapter 8 of the Dacono Municipal Code is hereby amended by

the addition of a new section 8-21, to read as follows: Sec. 8-21. - Application. This Article shall apply to every street, alley, sidewalk area, driveway, park, to every other public way or public place or public parking area, either within or outside the corporate limits of the City, the use of which this City has jurisdiction and authority to regulate, and to private streets and private access easements located within the City. The provisions of Sections 1401, 1402 and 1413 of the adopted Model Traffic Code, respectively concerning reckless driving, careless driving and eluding a police officer, shall apply not only to public places and ways but also throughout the City. Section 21. Article 1 of Chapter 8 of the Dacono Municipal Code is hereby amended by

the addition of a new section 8-22, to read as follows: Sec. 8-22. - Violations. (a) It is unlawful for any person to violate any of the provisions of this article for which no specific penalty has been provided, which violations are hereby deemed traffic infractions. A traffic infraction shall be a civil matter for which punishment by imprisonment shall not be available, and for which a penalty assessment notice shall be issued. Every person who is convicted of a traffic infraction, who admits liability or guilt for a traffic infraction or against whom a judgment is entered for a traffic infraction, is subject to a penalty of at least ten dollars ($10.00), but not more than three hundred dollars ($300.00).

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(b) For any violation of any provision of this article which is a traffic infraction, no trial by jury shall be available, no arrest warrant shall be issued for failure to appear or to pay, no privilege against self-incrimination shall apply, the standard of proof shall be a preponderance of the evidence, and the conduct of all proceedings applicable to such violation shall otherwise be in conformity with those generally applicable to civil matters. (c) For any violation of any provision of this article which is a traffic infraction, the court may enter a judgment or liability by default against the defendant for failure to appear or to pay, and may assess such penalty together with such court costs and surcharges, as are established by law. The court may establish, by written order, rules and regulations for the administration of any violation of this article which is a traffic infraction, including but not limited to schedules establishing the amount of penalties payable without a court appearance, and schedules establishing discounts from those amounts for early payment of penalties. Such early payment discounts shall apply only to penalties paid within ten (10) days of issuance of the penalty assessment notice for the infraction. (d) The city prosecutor may establish a prosecutor's plea bargain procedure, which shall be printed on the penalty assessment form and which, in conjunction with any early payment discount, shall provide for the automatic reduction of points assessed for a traffic infraction, subject to the following limitations: (1) A four-point violation may be reduced to no less than a two-point violation; and (2) A three- or a two-point violation may be reduced to no less than a one-point violation. (e) It is unlawful for any person to violate any of the following provisions of this article, which violations are hereby deemed criminal offenses. Every person convicted of a violation of the following provisions of this article shall be punished by a fine not exceeding one thousand dollars ($1,000.00), exclusive of any court costs and surcharges, or by imprisonment not exceeding one (1) year, or by both such fine and imprisonment. (1) Section 1101 of the Model Traffic Code, where the speed as driven is twenty (20) miles per hour or more over the lawful speed.

Nick Cotton-Baez

Chief to follow up with Court Clerk

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(2) Section 1105 of the Model Traffic Code, speed contest. (3) Section 1401 of the Model Traffic Code, reckless driving. (4) Section 1402 of the Model Traffic Code, careless driving. (5) Section 1409 of the Model Traffic Code, no insurance. (6) Section 1413 of the Model Traffic Code, eluding or attempting to elude a police officer. (7) Section 1903 of the Model Traffic Code, stopping for school buses.

Section 22. Section 8-34 of the Dacono Municipal Code is hereby amended to read as follows (words added are underlined; words deleted are stricken through):

Sec. 8-34. - Junked vehicles prohibited - Exceptions. It is unlawful for any person to permit any junked vehicle to be left upon any public property or, being the owner or tenant in possession of any real property in the city, to cause or permit any junked vehicle to be put upon or kept upon any real property in the city, except that this section shall not apply to the following conditions which, if proven, shall constitute an affirmative defense hereunder: (1) The vehicle is located upon the premises of a lawfully zoned vehicle repair business, lawfully zoned vehicle storage business, or lawfully zoned junkyard. (2) The vehicle is stored within a completely enclosed structure. Such a structure shall comply with all applicable city ordinances. (3) On a residential lot or parcel of real property, a maximum of one (1) vehicle per lot or parcel, in addition to any vehicle meeting the requirements of paragraph (2) of this section, shall be permitted if said vehicle is entirely covered with a one (1) piece opaque heavy tarp or commercial bona fide car cover, securely fastened at all times, or is screened by a concealing fence not less than six (6) feet in height which renders the vehicle not visible to persons on adjacent private or public property. Such a fence shall comply with all applicable city ordinances.

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(4) On a nonresidential lot or parcel of real property to which the provisions of paragraph (1) of this section do not apply, a maximum of one (1) vehicle only per lot or parcel, in addition to any vehicle meeting the requirements of paragraph (2) of this section, shall be permitted if said vehicle is screened by a concealing fence not less than six (6) feet in height which renders the vehicle not visible to persons on adjacent private or public property. Such a fence shall comply with all applicable city ordinances. Section 23. If any article, section, paragraph, sentence, clause, or phrase of this

ordinance is held to be unconstitutional or invalid for any reason, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each part or parts hereof irrespective of the fact that any one part or parts be declared unconstitutional or invalid.

Section 24. The repeal or modification of any provision of any prior ordinance by this

ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions.

Section 25. All other ordinances or portions thereof inconsistent or conflicting with this

ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. INTRODUCED, READ, ADOPTED ON FIRST READING, AND ORDERED

PUBLISHED BY TITLE AND POSTED IN FULL this ____ day of _______, 2019.

PUBLIC HEARING AND SECOND READING WILL BE THE _____ day of _______, 2019, AT ____ P.M. AT DACONO CITY HALL, 512 CHERRY STREET, DACONO, CO.

READ, ADOPTED ON SECOND READING, APPROVED, SIGNED, AND ORDERED PUBLISHED BY TITLE ONLY this _____ day of ____________, 2019.


___________________________________ Joe Baker, Mayor

ATTEST:

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_____________________________ Valerie Taylor, City Clerk

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Summary of Ordinance No. _____, “AN ORDINANCE ADOPTING BY REFERENCE THE 2010 EDITION OF THE MODEL TRAFFIC CODE FOR COLORADO, WITH AMENDMENTS, AND SETTING FORTH ADDITIONAL REGULATIONS CONCERNING VEHICLES AND TRAFFIC”: Adopts the 2010 edition of the Model Traffic Code for Colorado with amendments; provides penalties for violations thereof; and sets forth additional regulations concerning vehicles and traffic.

Agenda Item No.: VI-C.

Meeting Date: June 24, 2019

Subject: Consideration of Ordinance 871, amending Chapter 16 of the Dacono

Municipal Code Regarding Parking of Certain Vehicles on City Streets and

Roadways, on first reading.

Presenter: Jennifer Krieger, AICP, Community Development Director

Background: The Dacono City Council will be considering Ordinance 870 adopting the

2010 Model Traffic Code by reference. The purpose of the Model Traffic Code is to

provide a system of traffic regulations consistent with state law and generally

conforming to similar regulations throughout the Nation.

The adoption of the 2010 Model Traffic Code, as locally amended and adopted by the

City Council, requires changes to current sections of Chapter 16 of the Dacono Municipal

Code.

Staff Recommendation: Staff recommends approval of Ordinance No. 871 on first

reading.

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June 24, 2019

To: City of Dacono City Council

From: Jennifer Krieger, AICP, Community Development Director

Agenda Item: Ordinance No. 871, an Ordinance amending Chapter 16 of the Dacono Municipal Code

regarding parking of certain vehicles on city streets and roadways, on first reading.

____________________________________________________________________________________

Title Ordinance amending Chapter 16 of the Dacono Municipal Code regarding parking of certain vehicles on city streets and roadways.

Proposed Amendments

The Dacono City Council will be considering Ordinance 870 adopting the 2010 Model Traffic Code by reference. The purpose of the Model Traffic Code is to provide a system of traffic regulations consistent with state law and generally conforming to similar regulations throughout the Nation. Currently, the City of Dacono follows the 2003 Model Traffic Code. The adoption of the 2010 Model Traffic Code, as locally amended and adopted by the City Council, requires changes to current sections of Chapter 16 of the Dacono Municipal Code.

Proposed Amendments

Section 16-10 of the Dacono Municipal Code is hereby amended to read as follows (words to be added are underlined; words to be deleted are stricken through): Sec. 16-10. Prohibited uses. (f) No boat, boat trailer, travel trailer, tent trailer, fifth wheeler, pre-manufactured housing structure, motor home, other recreational vehicle or detached pickup camper shall be kept, stored or parked on any street or roadway in the City except for visitation purposes not exceeding seventy-two (72) hours. Subsection (d) of section 16-280 of the Dacono Municipal Code is hereby amended to read as follows (words to be added are underlined; words to be deleted are stricken through): Sec. 16-280. Required parking. d. All areas designed or required for parking or loading shall be approved by the City. Such area Any area designed or required for parking or loading shall be properly graded for drainage and shall be an improved surface surfaced with concrete, asphalt or pavers comprised of asphalt, concrete, brick, cement pavers, or similar materials installed and maintained

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according to industry standards. The term improved surface does not include compacted/crushed stone, compacted gravel, landscape mulch or similar material, or recycled asphalt. Parking on lawns, whether public or private, is expressly prohibited within the City. Parking and loading areas shall be maintained in good condition and free from debris, vegetation or any other objects that would interfere with the ability to use the area for parking.

Analysis Section 16-10 Prohibited Uses. The intent of the amendment is to align parking and traffic enforcement responsibility with the Model Traffic Code and remove references to parking enforcement from the zoning ordinance. Section 16-280 Required Parking. This section clarifies the definition of an improved surface and indicates that the materials must be installed and maintained to industry standards. Additionally, materials that are considered an improved surface are detailed. This section also expressly states that parking on lawns is prohibited. These changes do not make the current code more restrictive, but rather details the standards for improved surfaces.

Planning and Zoning Commission Recommendation

On June 11, the Planning and Zoning Commission recommended approval of changes to Chapter 16 of the Dacono Municipal Code regarding parking of certain vehicles on city streets and roadways.

Staff Recommendation

Staff recommends approved of an ordinance amending Chapter 16 of the Dacono Municipal Code regarding parking of certain vehicles on city streets and roadways with a modification. Staff suggests that Section 16-280 include an exclusion of this requirement, at the discretion of the Community Development Director, for property zoned AG Agricultural District.

ORDINANCE NO. 871

AN ORDINANCE AMENDING CHAPTER 16 OF THE DACONO

MUNICIPAL CODE REGARDING PARKING OF CERTAIN VEHICLES

ON CITY STREETS AND ROADWAYS

WHEREAS, Chapter 16 of the Dacono Municipal Code sets forth the City’s zoning

ordinances and regulations; and

WHEREAS, pursuant to Section 16-440 of the City of Dacono Municipal Code (the

“Code”), whenever public necessity, convenience, general welfare or good zoning practice

justifies such action, and after consideration by the Dacono Planning and Zoning Commission (the

“Planning Commission”), the Dacono City Council (the “City Council”) may change the

regulations set forth in Chapter 16 of the Code; and

WHEREAS, on June 11, 2019, the Planning Commission held a properly noticed public

hearing on the proposed ordinance amending Sections 16-10 and 16-280 of the Code, at which any

interested persons presented testimony to the Planning Commission and at which certain documents

were made a part of the record; and

WHEREAS, the Planning Commission recommended that the City Council adopt the

proposed ordinance to amend Sections 16-10 and 16-280 of the Code concerning parking to eliminate

any potential conflict with Chapter 8 of the Code regarding vehicles and traffic; and

WHEREAS, on _____________, 2019, the City Council held a properly noticed public

hearing on the proposed ordinance, at which any interested persons presented testimony to the City

Council and at which certain documents were made a part of the record; and

WHEREAS, based upon the testimony and documents presented at the public hearing, the

City Council finds that the proposed ordinance should be adopted.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY

OF DACONO, COLORADO:

Section 1. Section 16-10 of the Dacono Municipal Code is hereby amended to read as

follows (words to be added are underlined; words to be deleted are stricken through):

Sec. 16-10. Prohibited uses.

(a) No rubbish, as that term is defined in Section 7-1 of this Code, shall

be kept out of doors, except for disposal purposes in accordance with Article 1 of

Chapter 7 of this Code and other applicable laws.

(b) No rubbish, as that term is defined in Section 7-1 of this Code, shall

be removed from one (1) parcel of property and disposed of by depositing upon

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another property or in the streets or other public ways, except for purposes of

delivery to an authorized disposal site in accordance with Article 1 of Chapter 7 of

this Code and other applicable laws.

(c) The sale of fireworks is prohibited in any pre-manufactured housing

district.

(d) The storage of fireworks is prohibited in any pre-manufactured

housing district.

(e) On corner property, there shall be no planting of shrubs or flowers

above the level of a public roadway or street which obstruct the view of traffic

within the triangle of the intersection measured from a point of the intersection at

the gutter lines abutting the streets a distance of twenty-five (25) feet along each

such gutter line.

(f) No boat, boat trailer, travel trailer, tent trailer, fifth wheeler, pre-

manufactured housing structure, motor home, other recreational vehicle or

detached pickup camper shall be kept, stored or parked on any street or roadway in

the City except for visitation purposes not exceeding seventy-two (72) hours.

(g f) Boats, boat trailers, travel trailers, tent trailers, fifth wheelers, horse

trailers, motor homes and detached pickup campers shall be stored upon the owner's

property.

(h g) No laundry shall be hung outdoors except on a clothesline installed

for that purpose, and no such clothesline shall be attached to any fence or tree.

(i h) No slaughtering, evisceration or rendering of any animal, including

but not limited to any livestock, game animal or fowl shall be permitted outdoors

in any residential district other than the RR-1 (Rural Residential) district.

(j i) Temporary workforce housing is prohibited in all zone districts of

the City.

Section 2. Subsection (d) of section 16-280 of the Dacono Municipal Code is hereby

amended to read as follows (words to be added are underlined; words to be deleted are stricken

through):

Sec. 16-280. Required parking.

d. All areas designed or required for parking or loading shall be approved

by the City. Such area Any area designed or required for parking or loading shall be

properly graded for drainage and shall be an improved surface surfaced with concrete,

asphalt or pavers comprised of asphalt, concrete, brick, cement pavers, or similar

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materials installed and maintained according to industry standards. The term

improved surface does not include compacted/crushed stone, compacted gravel,

landscape mulch or similar material, or recycled asphalt. Parking on lawns, whether

public or private, is expressly prohibited within the City. Parking and loading areas

shall be maintained in good condition and free from debris, vegetation or any other

objects that would interfere with the ability to use the area for parking.

Section 3. If any article, section, paragraph, sentence, clause, or phrase of this

ordinance is held to be unconstitutional or invalid for any reason, such decision shall not affect the

validity or constitutionality of the remaining portions of this ordinance. The City Council hereby

declares that it would have passed this ordinance and each part or parts hereof irrespective of the

fact that any one part or parts be declared unconstitutional or invalid.

Section 4. The repeal or modification of any provision of any prior ordinance by this

ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty,

forfeiture or liability, either civil or criminal, which shall have been incurred under such provision,

and each provision shall be treated and held as still remaining in force for the purpose of sustaining

any judgment, decree, or order which can or may be rendered, entered, or made in such actions,

suits, proceedings, or prosecutions.

Section 5. All other ordinances or portions thereof inconsistent or conflicting with this

ordinance, or any portion hereof, are hereby repealed to the extent of such inconsistency or conflict.

INTRODUCED, READ, ADOPTED ON FIRST READING, AND ORDERED

PUBLISHED AND POSTED BY TITLE this ____ day of ______, 2019.

PUBLIC HEARING AND SECOND READING WILL BE THE ____ day of _____,

2019, AT 6:00 P.M. AT DACONO CITY HALL, 512 CHERRY STREET, DACONO, CO.

READ, ADOPTED ON SECOND READING, APPROVED, SIGNED, AND

ORDERED PUBLISHED BY TITLE this ____ day of ______________, 20__.


___________________________________

Joe Baker, Mayor

ATTEST:

__________________________________

Valerie Taylor, City Clerk

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Summary of Ordinance No. 871, “AN ORDINANCE AMENDING CHAPTER 16 OF THE

DACONO MUNICIPAL CODE REGARDING PARKING OF CERTAIN VEHICLES ON

CITY STREETS AND ROADWAYS” Amends Sections 16-10 and 16-280 of the Code

concerning parking to eliminate any potential conflict with Chapter 8 of the Code regarding

vehicles and traffic.

6/11/19 11:23 AM [ncb] R:\Dacono\Ordinances\Ordinance Amending Chapter 16 re Parking of Certain Vehicles on Streets.docx

Agenda Item #: VI. D. Meeting Date: June 24, 2019 Subject: Consideration and approval of Ordinance 872, granting a Non-Exclusive Franchise by the City

of Dacono, Colorado to Black Hills Colorado Gas, Inc., D/B/A Black Hills Energy, its successors and assigns, of the right to use the streets within the City to furnish, sell, transmit, transport, and distribute gas within and through the present and future corporate limits of said City of Dacono, Weld County, Colorado, granting the right to acquire, construct, install, locate, maintain, operate and extend into, within and through the City all facilities reasonably necessary to furnish, sell and distribute said gas to the City of Dacono and the inhabitants thereof, fixing the terms and conditions thereof, and repealing Ordinance Nos. 283, 703 and 847, on first reading.

Presenter: A.J. Euckert, City Manager Background: Presented for your consideration is the new franchise agreement with Black Hills Energy. Staff

and Black Hills Energy have worked together for some time on this agreement. The area that required more time than anticipated was the insurance section. Council has approved operator and encroachment license agreements that have uniform insurance requirements, which were crafted in consultation with the City’s insurance provider, CIRSA.

This agreement has some of those requirements, but not all. Because Black Hills Energy is

regulated by the Colorado Public Utilities Commission, unlike the operators in the recent agreements mentioned, there exists an additional level of governance on which the City can rely to safeguard their operations.

Staff does recommend approval of this agreement, which does not contain every insurance

requirement as the recent agreements mentioned above.

Recommended Action: Consideration and approval of Ordinance 872, granting a Non-Exclusive Franchise by the City of Dacono, Colorado to Black Hills Colorado Gas, Inc., D/B/A Black Hills Energy, its successors and assigns, of the right to use the streets within the City to furnish, sell, transmit, transport, and distribute gas within and through the present and future corporate limits of said City of Dacono, Weld County, Colorado, granting the right to acquire, construct, install, locate, maintain, operate and extend into, within and through the City all facilities reasonably necessary to furnish, sell and distribute said gas to the City of Dacono and the inhabitants thereof, fixing the terms and conditions thereof, and repealing Ordinance Nos. 283, 703 and 847, on first reading.

ORDINANCE NO. 872

AN ORDINANCE GRANTING A NON-EXCLUSIVE FRANCHISE BY THE CITY OF DACONO, COLORADO TO BLACK HILLS COLORADO GAS, INC., D/B/A BLACK HILLS ENERGY, SUCCESSOR TO BLACK HILLS GAS DISTRIBUTION, LLC F/K/A SOURCEGAS DISTRIBUTION LLC, ITS SUCCESSORS AND ASSIGNS, OF THE RIGHT TO USE THE STREETS WITHIN THE CITY TO FURNISH, SELL, TRANSMIT, TRANSPORT, AND DISTRIBUTE GAS WITHIN AND THROUGH THE PRESENT AND FUTURE CORPORATE LIMITS OF SAID CITY OF DACONO, WELD COUNTY, COLORADO, GRANTING THE RIGHT TO ACQUIRE, CONSTRUCT, INSTALL, LOCATE, MAINTAIN, OPERATE AND EXTEND INTO, WITHIN AND THROUGH THE CITY ALL FACILITIES REASONABLY NECESSARY TO FURNISH, SELL AND DISTRIBUTE SAID GAS TO THE CITY OF DACONO AND THE INHABITANTS THEREOF, FIXING THE TERMS AND CONDITIONS THEREOF, AND REPEALING ORDINANCE NOS. 283, 703 AND 847. WHEREAS, pursuant to Article IX of the Dacono Charter, the City is authorized to grant franchises by ordinance for the non-exclusive right to use the rights-of-way within the City to furnish, transmit, transport and distribute gas within and through the City; and

WHEREAS, the City and Black Hills Colorado Gas, Inc. have agreed to the terms upon which the parties will enter into a franchise agreement for the provision of gasworks, gas plant or systems, as more fully set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DACONO, COLORADO: Section 1. This Ordinance shall be known and may be cited as the Black Hills Gas Franchise Ordinance. Section 2. Chapter 3, Article 5 of the Dacono Municipal Code is hereby repealed and replaced, to read as follows:

Article 3 – Gas Service

Sec. 5-90. Definitions. Sec. 5-91. Grant of franchise. Sec. 5-92. Supply, construction and design. Sec. 5-93. Indemnity and Insurance. Sec. 5-94. Relocation of facilities. Sec. 5-95. Non-exclusivity of franchise. Sec. 5-96. Service standards. Sec. 5-97. Continuation of service. Sec. 5-98. Franchise fee. Sec. 5-99. Franchise fee payment not in lieu of other fees or permits.

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Sec. 5-100. Surcharge fees. Sec. 5-101. City’s right to condemn. Sec. 5-102. Franchise term. Sec. 5-103. Right to removal of facilities. Sec. 5-104. Assignment. Sec. 5-105. Forfeiture. Sec. 5-106. Severability. Sec. 5-107. Reserved rights. Sec. 5-108. Regulation. Sec. 5-109. No third party beneficiaries. Sec. 5-110. Amendments to franchise.

Sec. 5-90.- Definitions. As used in this Article, the following terms shall have the following meanings: “Council” or “City Council” means the city council of the City of Dacono, Colorado. “Facility” or “Facilities” means all apparatuses reasonably necessary for the Grantee to provide gas service into, within and throughout the City, including but not limited to plants, works, systems, distribution structures, equipment, pipes, mains, gas compressors, meters, meter reading devices, communications and data transfer equipment, and gas regulator stations.

"Grantee" or “Company” means Black Hills Colorado Gas, Inc., d/b/a Black Hills Energy, its successors and assigns, the grantee of rights under this franchise. "Person" means any person, firm, partnership, association, corporation, company or organization of any kind. “Residents” means all persons, businesses, industries, governmental agencies, and any other entities whatsoever, presently located or hereinafter to be located, in whole or in part, within the territory of the City. “Streets” refers to and are streets, alleys, viaducts, bridges, roads, lanes and other public rights-of-way in the City, excluding any easements the terms of which do not permit the use thereof by the Company. "City" means the City of Dacono, Colorado, the grantor of rights under this franchise. Sec. 5-91.- Grant of Franchise.

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The City hereby grants to the Grantee the non-exclusive right to use the Streets within the City to furnish, transmit, transport and distribute gas – whether natural, artificial or a combination thereof – within and through the City. The City also hereby grants to the Grantee the non-exclusive right, privilege and authority to locate, install, build, construct, acquire, purchase, extend, maintain and operate into, within and through said Streets within the City as the same now exists or may hereafter be extended, all Facilities reasonably necessary for the period and upon the terms and conditions hereinafter specified to furnish, sell and distribute gas to the City and the inhabitants thereof, for heating or other purposes. These rights shall extend to all areas of the City as now constituted and to any and all such new Streets as may be hereafter laid out, opened, located or constructed within the territory now or hereafter included in the boundaries of said City. Sec. 5-92.- Supply, construction and design. The Grantee shall locate its Facilities within the City in a manner to meet with the approval of the City. All excavation and construction work performed by the Grantee shall be done in accordance with all ordinances, resolutions, rules, regulations and standards of the City and further in such manner as to cause minimum interference with the City’s use of Streets and other public ways and places and to cause minimum interference with the rights or reasonable convenience of property owners whose property adjoins any of the said Streets or other public ways and places. All work on Grantee Facilities in the Streets is subject to inspection and approval by the City to ensure that said work has been performed in accordance with applicable City ordinances, resolutions, rules, regulations and standards. Such inspections and approvals may include, but are not limited to, proposed locations for Facilities in the Streets, disturbance of pavements, sidewalks and surfaces of the Streets or adjoining landscaping. Should it become necessary for the Grantee, in exercising its rights and performing its duties hereunder, to interfere with then existing Streets or other public or private improvements, including but not limited to water mains, sewers, landscaping or other improvements, the Grantee shall repair promptly any damage to said improvements or Streets at its own expense in a workmanlike manner subject to the approval by the City and in accordance with all ordinances, resolutions, rules, regulations and standards of the City. If the Grantee fails to repair the Streets or improvements which are damaged through the action of Grantee, the City may make such repairs and charge the reasonable cost thereof to the Grantee. Sec. 5-93.- Indemnity and Insurance

The Grantee shall indemnify, defend and hold harmless the City from and against all liability or damage and all claims, demands or liens arising out

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of the Grantee’s operations within the City or related to or arising out of the exercise by the Grantee of any rights and privileges hereby granted. The obligation of this Section shall not extend to any liability or damage and all reasonable expenses accruing against the Grantee arising out of the negligence, recklessness, or willful and wanton misconduct of the City, its officers, employees, agents, representatives, or contractors. .

Grantee shall procure policies of insurance, or in the case of the required

General Liability Insurance policy maintain self-insurance, to provide for the minimum insurance coverages listed below. Upon request of the City, Grantee shall furnish an informational certificate of insurance to the City so showing. The Grantee shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to this section by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. All insurance coverage shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Grantee pursuant to Chapter 5, Article 3 of the Dacono Municipal Code. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. The required coverages are:

A. Worker's Compensation insurance to cover obligations imposed

by applicable laws for any employee engaged in the performance of work under this franchise, and Employers' liability coverage with minimum limits of TWO MILLION DOLLARS ($2,000,000 each accident, TWO MILLION DOLLARS ($2,000,000) disease - policy limit, and TWO MILLION DOLLARS ($2,000,000) disease - each employee. Evidence for qualified self-insured status may be substituted for the Worker's Compensation requirements stated herein.

B. General Liability insurance with minimum combined single limits of TWO MILLION DOLLARS ($2,000,000) each occurrence and FIVE MILLION DOLLARS ($5,000,000) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, products, and completed operations. The policy shall include coverage for explosion, collapse, and underground hazards.

C. Comprehensive Automobile Liability insurance with minimum combined single limits for bodily injury and property damage of not less than TWO MILLION DOLLARS ($2,000,000) each

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occurrence and TWO MILLION DOLLARS ($2,000,000) aggregate with respect to each of Grantee's owned, hired and non-owned vehicles assigned to or used in performance of the services provided in accordance with this franchise. If the Grantee has no owned automobiles, the requirements as set forth herein shall be met by each employee of the Grantee providing services to the City under this franchise.

D. Excess Liability Insurance with minimum combined single limits of THIRTY-FIVE MILLION DOLLARS ($35,000,000) each occurrence and THIRTY-FIVE MILLION DOLLARS ($35,000,000) aggregate.

The policies required above, except for the Workers' Compensation insurance, shall include the City, the City’s officers and employees as additional insureds. Each such policy shall contain a severability of interests provision, and a waiver of subrogation and rights of recovery against the City, its officers, officials and employees. Every policy required above shall be primary insurance and any insurance carried by the City, its officers, or its employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Grantee. No additional insured endorsement to any policy shall contain any exclusion for bodily injury or property damage arising from completed operations. The Grantee shall be solely responsible for any deductible losses under any policy required above.

Failure on the part of the Grantee to procure or maintain self-insurance or

other policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of the franchise after the City has provided Grantee written notice of the failure, and upon sixty (60) days thereafter, to cure any failure as so noticed. Thereafter, if Grantee has failed to cure, the City may terminate this franchise, or at its discretion, the City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by the City shall be repaid by the Grantee to the City upon demand, or the City may offset the cost of the premiums against any monies due to Grantee from the City.

The parties hereto understand and agree that the City is relying on, and does

not waive or intend to waive by any provision of this franchise, the monetary limitations or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, 24-10-101 et seq., as from time to time amended. Sec. 5-94.- Relocation of facilities.

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A. If at any time it shall be necessary to change the position of any gas main or service connection of the Grantee to permit the City to lay, make or change street grades, pavements, sanitary or storm sewers, water mains or other City public works, such changes shall be made by the Grantee at its own expense. Such relocation shall be completed within a reasonable time, not to exceed 120 days from the date on which the City requests that such relocation work commence, unless weather, scope of the project, availability of materials, or other causes beyond the parties’ control prevents completion in this period. The Grantee shall bear all costs associated with relocation of any gas main or service connection that is the result of public works construction including but not limited to the alteration of street alignment, grades or pavement. The City shall make reasonable efforts to confer, in its usual course of managing public works projects, with the Grantee in regards to impending public works projects that may require relocation of Grantee Facilities and seek the Grantee's input during the initial planning and engineering phase of any such City project. The City shall make reasonable efforts to mitigate the financial impact of any such project on the Grantee. B. The City may request Grantee relocate its facilities in less than 90 days if needed by the City. Should the City request such an expedited relocation for reasons other than safety or emergency circumstances that require immediate action to prevent loss of life or significant damage to property or preserve integrity of an asset, Grantee and City shall confirm the time frame within which Grantee will relocate the facilities, and assess whether Grantee will incur any additional costs in the relocation as a result of the City’s expedited schedule. If Grantee will incur additional costs directly related to relocating the facilities within the time frame needed by the City for such expedited relocation, the City will pay these additional costs, provided that Grantee and City agree to the amount of the additional costs prior to the relocation. Any expedited relocation as a result of a safety or emergency circumstance that requires immediate action to prevent loss of life or significant damage to property or preserve the integrity of an asset, will be at the Grantee’s cost. C. The City will not oppose just and reasonable recovery of substantial costs the Grantee incurs in complying herewith that the Grantee requests from the Public Utilities Commission of the State of Colorado (PUC). D. The City may order or request Grantee to temporarily or permanently relocate its facilities or equipment for the primary benefit of a commercial or private project, or as a result of the initial request of a commercial or private developer or other non-public entity, if such removal is necessary to prevent interference with the commercial or private project; provided that: (A) the reasonable expense of such temporary or permanent

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relocation is paid by the developer or other non-public entity; and (B) the Grantee is given reasonable advance written notice to prepare for such changes. For purposes of this subsection, “reasonable advance written notice” shall be no less than thirty (30) business days in the event of a temporary relocation, and no less than one hundred twenty (120) days for a permanent relocation. Sec. 5-95.- Non-exclusivity of franchise. This franchise and the right to use and occupy said Streets shall not be exclusive, and the City reserves the right to grant the use of said Streets to any person during the period of this franchise. Sec. 5-96.- Service Standards. A. The Grantee shall maintain and operate its Facilities and render efficient service in accordance with the rules and regulations of the Colorado PUC and the terms and conditions of the City Code, other regulations and this franchise. B. Maps. Subject to applicable Confidentiality protections, the Grantee shall prepare and submit to the City a map showing the location of its distribution system within the City, showing location of the distribution system, so far as such facilities can reasonably be projected. Such map and the information contained therein shall be considered confidential, and except as provided in section 5-111 of this code, shall not be disclosed by the City to any third party without the prior written consent of Grantee. The map shall be kept current and filed with the City Clerk's office by May 1 of each year, when necessary. The City may request a more detailed map or description of facilities for limited planning purposes, which Grantee shall reasonably attempt to provide so far as such facilities can be reasonably projected or identified by Grantee, within no more than one hundred twenty (120) days. The City shall (if and to the extent available) provide Grantee annually a map showing the location of the following features and attributes: parcels, structures, boundaries, utilities, transportation, natural features, community development planning, hazards, parks and recreation, public safety, topography and imagery. C. Plans. Before commencement of installation of pipes in the City Streets, the Grantee shall prepare and submit to the City a map showing the location, size, and appurtenances incident to the distribution system, so far as such facilities can reasonably be projected. In addition, the Grantee shall submit a construction plan including a construction schedule, showing the dimensions of the area to be occupied by Grantee, its agents and equipment for performance of the installation, the streets and alleys where excavations will be simultaneously open at any given time, making

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provision for traffic routing in the event of interruption, setting forth the places where pavement cuts are expected, and where underground boring will occur for pipe installation. Such map and plan and the information contained therein shall be considered confidential, and except as provided in section 5-111 of this code, shall not be disclosed by the City to any third party without the prior written consent of Grantee. Construction may then proceed upon approval of said map and plan and the issuance of a street cut permit by the City. Nothing herein shall be construed to limit application of the City’s ordinances pertaining to installation of pipelines, conduits, transmission lines and cables as well as ordinances pertaining to excavation to the activities of the Grantee, except as provided herein. Grantee understands that its franchise granted hereunder is granted subject to all easements and other interests of record applicable to the City Streets. Grantee shall be solely responsible for coordinating its activities hereunder with the holders of such easements or other interests of record, and for obtaining any required permission for such activities from such holders if required by the terms of such easements or other interests. D. Access to Premises. To the extent allowed by law, Grantee shall have the right to enter the premises of consumers at reasonable times for the purpose of reading meters, inspecting gas appliances, pipes and equipment and for the purpose of ascertaining loads, making necessary tests and installing, disconnecting or removing meters. Sec. 5-97.- Continuation of service. If during the term of this franchise, there occurs a failure or partial failure of the supply of natural gas available to the Grantee because of depletion of such supply, the Grantee shall take all reasonable steps to obtain an additional natural gas supply from other sources to be delivered to the Grantee, and if unable to procure same, it is hereby authorized to supply artificial or mixed gas for the unexpired term of this franchise. If Grantee, within a reasonable period after failure of the supply of natural gas, shall fail to supply to its customers artificial and/or mixed gas, the franchise rights granted herein shall terminate. Sec. 5-98.- Franchise fee. A. In consideration of the rights and privileges herein granted, the Grantee shall assess, effective the first billing cycle after this franchise becomes effective, to all customers of Grantee within the City of Dacono, Colorado, a franchise tax or fee equivalent to $0.0259 per therm of gas delivered to all customers within the present and future limits of the City of Dacono, Colorado on Grantee's distribution system, except that gas delivered to the City will not be assessed a franchise fee. The City shall provide a list of City accounts to Grantee that should not be assessed the franchise fee. Grantee shall list the franchise fee collected from customers

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as a separate item on bills for utility service issued to its customers. Grantee shall pay to the City Treasurer an amount equal to the franchise fee or tax funds collected by Grantee hereunder. Payments to the City of the franchise fee collected shall be made quarterly within 60 days of each calendar quarter and each such payment shall be accompanied by a statement supporting the payment. B. Such payment shall be in lieu of any and all other fees (including pipeline, conduit, transmission line, cable and excavation permit fees), charges, licenses, taxes or assessments which City may impose for the rights and privileges herein granted or for the privilege of doing business within the City and for the use of the Streets, and in no event shall any such franchise tax or fee be imposed upon the City’s own natural gas service accounts with Grantee. Ad Valorem property taxes imposed generally upon all real and personal property within the City shall not be deemed to affect the obligation of the Grantee under this section.

C. Within ten (10) days of the date of this ordinance, City shall provide Grantee with a map of its corporate limits (the “Map”). The Map shall be of sufficient detail to assist Grantee in determining whether their customers reside within the City’s corporate limits. The Map along with Grantee’s Geographic Information System (“GIS”) mapping information shall serve as the basis for determining Grantee’s obligation hereunder to collect and pay the franchise fee from customers; provided, however, that if the City’s corporate limits are changed by annexation or otherwise, it shall be the City’s sole responsibility to (a) update the Map so that the changes are included therein, and (b) provide the updated Map to the Grantee.

D. Grantee’s obligation to collect and pay the franchise fee from customers within an annexed area shall not commence until the later: (a) of sixty (60) days after Grantee’s receipt from the City of an updated Map including the annexed area, or (b) after Grantee’s receipt from the City of an updated Map including the annexed area as is reasonably necessary for Grantee to identify the customers in the annexed area obligated to pay the franchise fee; provided that, neither party shall have the obligation to correct a mistake, including but not limited to collection of the fee by Grantee from its customers or remittance of that fee by Grantee to the City, that is discovered more than one (1) year after the occurrence thereof. Grantee shall be entitled to rely on written information, materials, and documents provided by the City for purposes of imposition and collection of the franchise fee. Grantee shall not be liable for paying franchise fees from or to any customer incorrectly identified by the City, originally or subsequently, as being subject to the franchise fee or being subject to a different level of franchise fees or being exempt from the imposition of franchise fees, and the City shall indemnify Grantee from claims arising out of the Grantee’s reliance on written information, materials, and documents

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prepared by the City for purposes of identifying customers for the imposition and collection of the franchise fee. E. For the purpose of ascertaining or auditing the correct amount to be paid under the provisions of this paragraph, the City Manager or the City Manager’s designee shall have access to the books, accounts and other records of Grantee for the purpose of checking the gross revenue received and volume of gas sold and delivered from operations within the City. F. If at any time during the term of this franchise the manner in which the franchise fee is calculated, collected or paid is changed, whether by action of the Grantee, the PUC, or any entity having jurisdiction thereof, the Grantee agrees to cooperate with the City in modifying the franchise to assure that the Grantee collects from its Customers, and the City receives an amount in franchise fees or some other form that is the same amount or more than the amount of franchise fees collected by the Grantee and paid to the City as of the date of such change and required modification, to the extent permitted by law. Sec. 5-99.- Franchise fee payment not in lieu of other fees or permits. Payment of the franchise fee by the Grantee as accepted by the City does not exempt the Grantee from sales tax, license fees, sales and use taxes, head taxes, building permit fees, land use fees, development impact fees, or other fees and charges that are required to be paid pursuant to ordinances of general application that are not pursuant to the rights and privileges herein granted or for the privilege of doing business within the City and for the use of the Streets. Grantee shall be responsible for obtaining all applicable City approvals and permits for the installation of pipelines, conduits, transmission lines and cables, and for excavation, although the permit fee for such excavation or installation of pipelines, conduits, transmission lines or cables, shall not be applicable pursuant to Section 5-98 of this Code. Sec. 5-100.- Surcharge fees. The Grantee shall be permitted to surcharge the franchise fee to the Residents of the City that use Facilities of the Grantee in the Streets to obtain gas. The Grantee shall be permitted to surcharge Residents of the City any other payments it makes to the City; provided that, such surcharge(s) are permitted by law and have been approved by the Colorado Public Utilities Commission. Sec. 5-101.- City’s right to condemn.

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The City shall have the right to condemn the Facilities of the Grantee or to otherwise restrict the Grantee's opportunity to conduct business in the City as provided in the City Charter, or other applicable law. Sec. 5-102.- Term of franchise. A. This franchise shall take effect on the first day of the month following the date this Ordinance is finally approved by Grantee, but such effectiveness is thereafter subject to Colorado law and required approval of the Colorado Public Utilities Commission (the “Effective Date”), at which time the Grantee will begin to collect the franchise fee set forth herein and this franchise shall remain in effect for a period of ten (10) years from the Effective Date of this Ordinance. Upon final passage and approval of this Ordinance by City, in accordance with applicable laws and regulations, Grantee shall file its acceptance by written instrument, within sixty (60) days of passage by the City Council, with the Clerk of the City of Dacono, Colorado. If Grantee does not, within sixty (60) days following passage of this Ordinance, either express in writing its objections to any terms or provisions contained therein, or reject this Ordinance in its entirety, Grantee shall be deemed to have accepted this Ordinance and all of its terms and conditions. B. Council may conduct periodic reviews of the franchise. Sec. 5-103.- Right to removal of facilities. Upon the termination of this franchise, if the Grantee has not acquired an extension or renewal thereof and accepted same, Grantee may remove its Facilities from the Streets and other public places of the City, provided that the City has had ample time and opportunity to purchase, condemn or replace said Facilities. In so removing its Facilities, the Grantee shall, at its own expense and within a reasonable time not to exceed 180 days, restore all property affected by removal operations to their pre-existing condition, to the satisfaction of the City. Sec. 5-104.- Assignment. The Grantee shall not assign this franchise, or the rights granted hereunder without first providing ninety (90) days’ written notice to the City. This section shall not be construed to restrict or prevent the issuance of bonds, debentures, or other evidence of indebtedness, or the issue of additional stock, needed or useful for the purpose of financing the system or any portion thereof. Sec. 5-105.- Forfeiture. If the Grantee materially fails to perform any of the terms and

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conditions of this franchise, the City may notify the Grantee of the specific failure and shall allow the Grantee a reasonable time within which to remedy the failure, not to exceed 120 days or additional days if agreed to by the parties. The City reserves the right to declare a forfeiture of this franchise for the material breach of a substantial and material provision thereof. No forfeiture shall be declared until the Grantee shall have had an opportunity to be heard and to correct or justify the alleged material breach. Upon failure of the Grantee to exercise reasonable diligence to correct such condition, the City may declare this franchise forfeited and notify Grantee in writing. In the event that this franchise is forfeited, then the Grantee agrees to continue to render service as theretofore provided until (1) the City makes alternative arrangements for such services, or (2) Grantee is permitted to abandon service by authority of the Colorado PUC or a Court of competent jurisdiction. Neither the City nor the Grantee shall be in material breach or forfeiture of this franchise if failure to perform is due to uncontrollable forces, which shall include but not be limited to accidents, acts of God, floods, storms, fires, sabotage, terrorist attack, labor disputes, riots, war, forces of nature and other causes or contingencies of whatever nature beyond the reasonable control of the parties affected, which could not reasonably have been anticipated and avoided. Sec. 5-106.- Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid, unconstitutional or unenforceable by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portion thereof. The City Council declares that it would have passed this ordinance and each part or parts hereof irrespective of the fact that any one part or parts be declared unconstitutional or invalid. Sec. 5-107.- Reserved rights. The right is hereby reserved by the City to adopt, from time to time, in addition to the provisions herein contained, such ordinances as may be deemed necessary in the exercise of its police power to protect the health, safety and welfare of the public, including but not limited to ordinances to control and regulate the use of the Streets and the space above and beneath the Streets. Neither the City nor the Grantee waives any rights under the statutes and constitution of the State of Colorado or of the United States except as otherwise specifically set forth herein. Sec. 5-108.- Regulation. This Ordinance and the respective rights and obligations of the

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parties hereunder are subject to all present and future valid governmental legislation or regulation, whether federal or state, of duly constituted authorities which have jurisdiction over this Ordinance, one or both of the parties, or any transaction hereunder. Sec. 5-109.- No third party beneficiaries. Nothing contained in this franchise shall be construed to provide rights to third parties. Sec. 5-110.- Amendments to franchise. This franchise may be amended only by a writing signed by both the Grantee and the City, which is approved in the same manner as is required for the passage for the ordinance adopting this franchise. Sec. 5-111.- Confidential Information. City acknowledges that certain information it might request from Grantee pursuant to this Ordinance may be of a proprietary and confidential nature, and that such requests may be subject to the Homeland Security Act or other confidentiality protections under state or federal law. If Grantee requests that any information provided by Grantee to City be kept confidential due to its proprietary or commercial value, City and its employees, agents and representatives shall maintain the confidentiality of such information, to the extent allowed by law. If City is requested or required by law, including but not limited to the Colorado Open Records Act, Section 24-72-201, et seq., C.R.S., or legal or administrative process to disclose any such proprietary or confidential information, City shall promptly notify Grantee of such request or requirement so that Grantee may seek an appropriate protective order or other relief.

Section 3. Ordinance No. 282, passed under date of June 11, 1984, Ordinance No. 703, passed under the date of February 11, 2008, and Ordinance No. 847, passed under the date of April 23, 2018, are hereby repealed and of no further force or effect. All other ordinances or portions thereof inconsistent or conflicting with this ordinance or any portion hereof are repealed to the extent of such inconsistency or conflict. Section 4. The repeal or modification of any provision of the Municipal Code of the City of Dacono by this ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions.

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INTRODUCED, READ, ADOPTED ON FIRST READING, AND ORDERED PUBLISHED AND POSTED IN FULL this 24th day of June, 2019. PUBLIC HEARING AND SECOND READING WILL BE THE 8th day of July, 2019, AT 6:00 P.M. AT DACONO CITY HALL, 512 CHERRY STREET, DACONO, CO. READ, ADOPTED ON SECOND READING, APPROVED, SIGNED, AND ORDERED PUBLISHED BY TITLE this _____ day of ___________, 2019.

CITY OF DACONO, COLORADO _________________________ Joe Baker, Mayor

Attest: ________________________ Valerie Taylor, City Clerk ACCEPTED AND EXECUTED by Black Hills Colorado Gas, Inc. this ____ day of ______________, 2019.

BLACK HILLS COLORADO GAS, INC.

________________________ Vice President ATTEST: _______________________ Secretary

CERTIFICATE

State of Colorado ) )ss County of Weld ) I, Valerie Taylor, City Clerk of the City of Dacono, Colorado do hereby certify that the foregoing is a full, true and correct copy of Ordinance No. 872 of said City, granting a

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franchise by the City of Dacono, Colorado, to Black Hills Colorado Gas, Inc., formerly duly passed and published in the manner provided by law. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of the City of Dacono, Colorado, this ______ day of ______________, 2019. ________________________ City Clerk (SEAL)

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Summary of Ordinance No. 872, “AN ORDINANCE GRANTING A NON-EXCLUSIVE FRANCHISE BY THE CITY OF DACONO, COLORADO TO BLACK HILLS COLORADO GAS, INC., D/B/A BLACK HILLS ENERGY, SUCCESSOR TO BLACK HILLS GAS DISTRIBUTION, LLC F/K/A SOURCEGAS DISTRIBUTION LLC, ITS SUCCESSORS AND ASSIGNS, OF THE RIGHT TO USE THE STREETS WITHIN THE CITY TO FURNISH, SELL, TRANSMIT, TRANSPORT, AND DISTRIBUTE GAS WITHIN AND THROUGH THE PRESENT AND FUTURE CORPORATE LIMITS OF SAID CITY OF DACONO, WELD COUNTY, COLORADO, GRANTING THE RIGHT TO ACQUIRE, CONSTRUCT, INSTALL, LOCATE, MAINTAIN, OPERATE AND EXTEND INTO, WITHIN AND THROUGH THE CITY ALL FACILITIES REASONABLY NECESSARY TO FURNISH, SELL AND DISTRIBUTE SAID GAS TO THE CITY OF DACONO AND THE INHABITANTS THEREOF, FIXING THE TERMS AND CONDITIONS THEREOF, AND REPEALING ORDINANCE NOS. 283, 703 AND 847.”: Authorizes the grant of a non-exclusive franchise to furnish, sell, transmit, transport and distribute gas within the City of Dacono to Black Hills Colorado Gas, Inc. for a period of ten years. The proposed franchise would assess a franchise fee equivalent to $0.0259 per therm of gas delivered to all customers of Black Hills Colorado Gas, Inc. within the City.