2012 Budget - South Suburban Parks and Recreation

South Suburban Park and Recreation District
Summary of Significant Financial Policies
Fund Balance (continued)
The General Fund has the following Restrictions:
Emergencies $534,615
TABOR requires local governments to establish Emergency Reserves. These
reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt
service). Local governments are not allowed to use the emergency reserve to
compensate for economic conditions, revenue shortfalls, or salary and benefit
increases.
Open Space Acquisition/Trail Development (2000 1 Mill) $1,855,378
On May 2, 2000, a majority of the District’s electors also authorized the District to
increase property taxes $1,700,000 in the first full fiscal year (for collection in 2001)
for a period not to exceed ten years. The increased levy (to be known as the Open
Space Tax or 1 Mill) will continue at the rate of up to one (1) mill annually, for
collection through fiscal year 2012, in whatever amounts are generated by such levy.
The revenue from the Open Space Tax is to be used solely to acquire or to offset the
cost of acquiring open space and parks, and to develop or to offset the cost of
development of trails and is not subject to any limitation under TABOR.
Environmental Liability Escrow $158,717
On August 1, 2001, the District entered into a Ground Lease with Arapahoe County
(County) to lease land previously used as a landfill. As of execution of the lease, the
District was required to deposit $40,000 into an Environmental Liability Escrow
interest bearing account. Annually thereafter, the District shall deposit into said
account, the sum of $10,000 until the balance in the account reaches $200,000. All
monies in the escrow account shall be used by the County to pay for environmental
liability incurred by the County or any operator of the landfill as a result of District
activities on the site. Upon expiration of this lease, or the purchase of the site by the
District, all monies in the escrow account, including accrued interest, shall be
returned to the District.
The General Fund has the following Assignments:
Health Insurance Claims (estimated) $1,000,000
The District has a self-insurance plan for employee health and dental care. An
outside administrator is utilized to monitor individual employee claims and negotiate
excess coverage insurance policies. Excess coverage insurance policies are
purchased to cover individual yearly health claims in excess of $60,000 and aggregate
total yearly health claims in excess of $1,701,216. The liability is estimated based
upon the experience of the District, trends in costs of services, and changes in the
number of members. Estimates are revised as changes in these factors occur and such
revisions are reflected in operations of the current period. Liabilities include an
amount for claims that have been incurred but not reported.
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