GV used its reserves to balance its budget in 2020


On June 7, Greenwood Village Finance Director Shawn Cordsen presented to the city council the 103-page Comprehensive Annual Financial Report for the year ended December 31, 2020, an 11-page financial governance communication from the city’s auditors, CliftonLarsonAllen (CLA), and a one-page management letter from CLA outlining two areas of deficiencies in internal control that the auditors noted. 

Cordsen told the city council that, for the year 2020, “citywide revenues totaled $53.9 million (compared to) expenditures of $58.7 million.” The result, Cordsen explained, was a $4.7 million (rounded) reduction in the citywide fund balance from $55.8 million to just shy of $51.1 million.  

According to the 2021 adopted annual budget for the city, its general and capital project fund are expected to have a combined balance of $51.9 million at the end of this year, after all expenses are paid, of which $27.8 million is considered restricted for operating reserves, open spaces acquisitions, and traffic safety improvements. The remaining $24.1 million is designated as the unassigned fund balance, available for any purpose the city council sees fit.

Paul Niedermuller, principal auditor from CLA, appeared with Cordsen and told the city council that the firm also audited the disbursement of the $6.4 million in federal CARES Act funds GV received from the state and found no issues or problems with the manner in which that money was disbursed.

The only member of the city council to ask a question about the audit report was Anne Ingebretsen, who wanted to know, “In terms of our performance with regard to COVID and the reduction in our revenues, that kind of thing, how we compared with the same impacts but in other municipalities?” Niedermuller noted GV’s heavy dependency on sales tax, which was significantly impacted by the pandemic, but, he said, “The reserves that you currently have…helped you weather the storm.”