Castle Pines council hears 2023 audit highlights tied to asset transfer, and adopts gift‑and‑donation policy

The City Council received the 2023 annual audit and financial highlights during its July 23 regular meeting and later adopted a new gift‑and‑donation policy.

Mike Purina, city staff, introduced the auditors and said the audit work was completed and would be posted to the city website and submitted to the state auditor by the July 31 deadline. An auditor said the 2023 report contains a special item related to the transfer of operations and cash from the Castle Pines North Metro District and that the transfer materially increased reported revenues for 2023.

An auditor summarized the financial picture: net position rose in 2023, total revenues increased compared with 2022 in part because of the special item and stronger interest income, and expenses were higher due to capital investments including parks and the assumption of certain operations from the Metro District. The auditor noted the city holds investments to maturity and that prior unrealized fair‑value losses had been largely paper losses tied to market rates.

Council members asked detailed questions about the composition of the higher 2023 revenues, where the special item appears in the notes and when related assets will be reflected on the balance sheet; auditors directed council to Note 8 and said detailed asset listings will appear in next year’s report when transfers are completed and deeds are executed.

After the audit presentation, council considered Resolution 24‑46, a gift‑and‑donation policy. The city manager said the policy formalizes an administrative process that will allow staff to accept low‑maintenance benches and trees while reserving other donations for council approval. Council modified the resolution title in the motion to read "gift and donation to the city policy," discussed adding a "when possible" notification to donors for future relocations or replacements, and then voted. The clerk called the roll and the resolution passed unanimously.

Votes at a glance: the consent agenda (Resolutions 24‑44 and 24‑45) was approved earlier in the meeting; Resolution 24‑46 (gift and donation to the city policy) was adopted by unanimous roll‑call vote.

Why it matters: the special item and transfer from the Castle Pines North Metro District change the city’s reported financial position and will affect bookkeeping and asset reporting in 2024; the donation policy clarifies how the city will handle small gifts while protecting the council’s authority to accept larger or restricted donations.

Next steps: staff will post the final audit to the city website and submit the report to the state, include the detailed asset transfer listing in next year’s financial statements, and implement the administrative procedures for the new donation policy.