HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/13/2004 - 2003 AUDIT AND ASSOCIATED MANAGEMENT REPORT DATE: July 13, 2oca STUDY SESSION ITEM
STAFF: Atteberry/Krcmarik FORT COLLINS CITY COUNCIL
SUBJECT FOR DISCUSSION
BONDI & Co., LLC, the City Council external auditor, will present a report regarding the 2003
Audit and associated Management Report.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Each year the external auditor conducts a review of the City financial systems and reporting. For
2003, the City Comprehensive Annual Financial Report received a clean opinion from the auditor.
During the last two years,the City has been in a challenging economic situation due to the national
recession and falling sales taxes. Despite the difficult economic times, the City financial position
remains strong. Staff is not seeking direction on the annual report, however, questions are
encouraged.
Representatives from BONDI&Co. will make a short presentation about the annual audit and will
also discuss the items contained the Management Report.
• Does Council have any follow-up questions about the City financial condition and
the manner is which the financial results have been presented?
• Does Council have any additional questions about the items contained in the
Management Report?
• Are there any other financial-related questions that the Council may have for the
external auditor?
ATTACHMENTS
City of Fort Collins 2003 Comprehensive Annual Financial Report
Management Report for the City of Fort Collins, Colorado, December 31, 2003
City of Fort Collins , Colorado
Comprehensive Annual Financial Report
For the fiscal year ended
December 31 , 2003
Prepared by the Finance Department:
Alan J. Krcmarik, Financial Officer
Sherrie Temple, Assistant Finance Director
Stephanie Schultz, Financial Systems Administrator
Julie Depperman, Investment Administrator & Assistant Treasurer
Judi L. vos, Cash Systems Coordinator
Accounting Division
Charles M. Seest, CPA, Accounting & Financial Reporting Manager
Edna Hoernicke, Senior Accountant
Trina K. Dreith, CPA, Accountant
Barbara D. Brock, Accountant
Michael W. Anderson, Accountant
About our cover and section tabs . . .
During the past year, the City of Fort Collins has completed and participated in several significant projects to
address the needs of our vibrant growing community.
The cover shows the marker at the entrance to Fossil Creek Community Park, the City's first new community park
since 1984. The park opened in October and features a playground, skate park, inline hockey rink, dog park, lighted
ballfields, tennis and basketball courts, a large picnic shelter and ponds.
The "Introductory Section" tab displays the renovated City Park Pool. The newly designed pool includes a lazy
river, two water play features, a new boardwalk and additional deck and grass area.
The "Financial Section" tab displays cars stuck in the snow in the Old Town section of Fort Collins following the
March blizzard, which virtually shut down activity in the City for over two days. City crews worked around the
clock clearing roads and assessing damage to buildings. The other image displays people clearing the sidewalks.
The "Statistical Section" tab displays the grid of the traffic signal system. Traffic flow in the City has improved
significantly with the installation of the new traffic signal system last year. Traffic along College Avenue, Harmony
Road, and other major roadways in the City has particularly been enhanced by this new system.
ii City of Fort Collins
City of Fort Collins , Colorado
Comprehensive Annual Financial Report
For the fiscal year ended December 31 , 2003
Table of Contents
Page
INTRODUCTORYSECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Letterof Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
GFOA Certificate of Achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
OrganizationalChart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
List of Elected and Appointed Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
FINANCIALSECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
MANAGEMENT'S DISCUSSION AND ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
BASIC FINANCIAL STATEMENTS : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Government-wide Financial Statements :
Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Statementof Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Fund Financial Statements :
Governmental Fund Financial Statements :
BalanceSheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Statement of Revenues , Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . 40
Reconciliation of the Statement of Revenues , Expenditures , and Changes in
Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . 41
Statement of Revenues , Expenditures , and Changes in Fund Balances
Actual and Budget- General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Statement of Revenues , Expenditures , and Changes in Fund Balances
Actual and Budget-Sales and Use Tax Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Statement of Revenues , Expenditures, and Changes in Fund Balances Actual
and Budget (Non-GAAP budgetary basis )-Transportation Services Fund . . . . . . . . . . . . 44
Proprietary Fund Financial Statements :
Statementof Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Statement of Revenues , Expenses, and Changes in
FundNet Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Fiduciary Fund Financial Statements :
Statement of Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Statement of Changes in Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Comprehensive Annual Financial Report lli
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A:
Schedules of Net Pension Obligation , Net Pension
Cost, and Employer Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Modified Approach for City Streets Infrastructure Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
COMBINING FINANCIAL STATEMENTS :
Non -Major Governmental Funds : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
BalanceSheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Statement of Revenues, Expenditures and Changes in
FundBalance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Schedule of Revenues , Expenditures , and Changes in Fund Balances
Actual and Budget—Other Non-Major
Governmental Funds:
Community Development Block Grant (Non-GAAP budgetary basis) . . . . . . . . . . . . . . . 90
Conservation Trust (Non-GAAP budgetary basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Cultural Services and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
General Improvement District No . 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Parkland ( Non-GAAP budgetary basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
StreetOversizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Transit Services (Non-GAAP budgetary basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Cemeteries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
PerpetualCare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Emergency Recovery (Non-GAAP budgetary basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Home Investment Partnership Grant (Non-GAAP budgetary basis ) . . . . . . . . . . . . . . . 101
Capital Expansion (Non-GAAP budgetary basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
OpenLands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
DebtService . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
SpecialAssessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 . . . . . . . . . . . . . . . . . . 105
Fort Collins Leasing Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
CapitalProject Fund : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Schedule of Revenues, Expenditures, and Changes in
Fund Balance (Non-GAAP budgetary basis ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Non -Major Enterprise Fund — Golf: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Schedule of Revenues, Expenditures and Changes in
Net Assets, Actual and Budget (Non-GAAP budgetary basis ) . . . . . . . . . . . . . . . . . . . . . . . . . . 113
MajorEnterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . 115
Schedule of Revenues, Expenditures, and Changes in Net Assets
Actual and Budget (Non-GAAP Budgetary Basis) — Major Enterprise Funds :
Lightand Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
StormDrainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . 120
Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Statementof Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Statement of Revenues, Expenses and Changes in
NetAssets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Statementof Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Schedule of Revenues , Expenditures, and Changes in Net Assets
Actual and Budget — Internal Service Funds :
Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Communications ( Non-GAAP budgetary basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
IV City of Fort Collins
Equipment (Non-GAAP budgetary basis ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Self- Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Utility Customer Service and Administrative ( Non-GAAP budgetary basis) . . . . . 132
FiduciaryFunds : . . . . . . . . I ' , # , . . . . . . . . . . . . . . . I . . . . . . . . . . . . . 4 , * 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Statement of Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Statement of Changes in Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Schedule of Changes in Net Assets Held in Trust for
Pension Benefits—Actual and Budget ( Non-GAAP Budgetary Basis) . . . . . . . . . . . . . . 137
Statement of Agency Funds Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
Statement of Changes in Agency Funds Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
ComponentUnit : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Statement of Revenues , Expenditures , and Changes in
Net Assets - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Statement of Revenues , Expenditures , and Changes in
Net Assets - Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Capital Assets Used in the Operations of Governmental Funds : . . . . . . . . . . . . . . . . . 145
Scheduleby Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . 147
Schedule by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Schedule of Changes by Function and Activity . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . . . . . . 149
STATISTICALSECTION , , I I . 4 10 1 1 & I I I I * s 0 M 0 0 s a a a a & . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
General Governmental Expenditures by Function - Last Ten Years . . . . . , , . , . . . . . . . . . . . . . . 1 . 11 . . . . . . . . . . . . . . . 1153
General Governmental Revenues by Source - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Property Tax Levies and Collections , Special Assessments Collections - Last Ten Years . . . . . . . . 155
Assessed and Estimated Actual Value of Taxable Property - Last Ten Years . . . . . . . . . . . . . . . . . . .. . . . . . . . 156
Assessed and Estimated Actual Value of Taxable Property by Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
PrincipalTaxpayers , . . , . , , , . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Property Tax Levy from Direct and Overlapping Governments Applicable
to Most Properties Located in the City - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . " . . . . . . . . . . . . . . . . . 159
Schedule of Direct and Overlapping Debt; Assessed Valuation , Debt, and Debt Ratios . . . . . . . . . . . . 160
Computationof Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Ratio of Net Direct General Bonded Debt to Assessed Value and Net Direct
Bonded Debt Per Capita ; Ratio of Annual Debt Service Expenditures for
Direct General Bonded Debt to General Expenditures - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Revenue Bonded Coverage - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Property Value , Construction Activity, Assessed Real Property Values and
Total Street Miles - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . 165
DemographicStatistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " I . . . . . . 166
History of Sales and Use Tax Rates - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Sales and Use Tax Revenue - Last Ten Years . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Residential Real Estate Sales Statistics - Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . . . . . . . . . . . . 169
Wastewater Utility Enterprise SEC Rule 15c2- 12 Information . , " . . , . , , . . . . . . . . . . . . . . 60 , 00 . . . . . . . . . . . . . . . . . . . . . . . . 170
Storm Drainage Utility Enterprise SEC Rule 15c2- 12 Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Water Utility Enterprise SEC Rule 15c2 - 12 Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Transportation Services Special Revenue Fund SEC Rule 15c2-12 Information . . . . . . . . . . . . . . . . . . . . . . . . 185
DDA Tax Increment Revenue and Refunding Bonds SEC Rule 15c2- 12 Information . . . . . . . . . . . . I . . . 186
Comprehensive Annual Financial Report v
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vi City of Fort Collins
INTRODUCTORY SECTION
Comprehensive Annual Financial Report 1
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2 City of Fort Collins
6ii il
City of Fort Collins
May 7, 2004
Honorable Mayor and Members of Council and
Residents and Customers of the City of Fort Collins .
The City faced many challenges in 2003 . While the national economy began to recover from the
recession , Colorado and the Fort Collins regional economies remained in the worst slump in many
years . Other communities are competing for retail sales , which fuel the City's major revenue
source — the sales tax . Investment rates plummeted to their lowest level in 40 years , cutting
investment earnings to less that half of their prior amounts . Fort Collins and the west remain in
drought conditions and the deadly West Nile virus struck Northern Colorado. Despite these
factors , the City was able to maintain its strong financial position in 2003 . The City maintained its
strong financial position with over $200 million of unrestricted fund balances overall and $23 million
in the General Fund . In this context, we transmit the Comprehensive Annual Financial Report .
Legal Requirements . The Charter of the City of Fort Collins and State law require the City to
publish the results of its annual audit and a comprehensive report of financial statements . The
City's Finance Department completed this report following generally accepted accounting
principles ( GAAP ). The external auditor, a firm of licensed certified public accountants , audited the
financial records in accordance with generally accepted auditing standards . To meet the
requirements and to provide a clear summary of the City's financial activities we present this
comprehensive annual financial report of the City of Fort Collins , Colorado for the fiscal year ended
December 31 , 2003 .
Responsibility and Internal Control . This report consists of management's representations
concerning the finances of the City of Fort Collins . As management, we retain full responsibility for
the completeness and reliability of all of the information presented in this report. To provide a
reasonable basis for making these representations , management has established a
comprehensive internal control framework that is designed both to protect the City' s assets from
loss , theft , or misuse and to compile sufficient reliable information for the preparation of the City of
Fort Collins financial statements in conformity with generally accepted accounting principles . The
cost of internal controls should not outweigh their benefits . Management has designed the City of
Fort Collins framework of internal controls to provide reasonable rather than absolute assurance
that the financial statements will be free from material misstatement. As management, we assert ,
to the best of our knowledge and belief, this financial report is complete and reliable in all material
respects .
Independent Audit , The City Council selected BONDI & Co. LLC, a firm of licensed certified public
accountants , to audit the financial statements . As the independent auditor, BONDI's goal was to
provide reasonable assurance that the financial statements for the fiscal year ended December 31 ,
2003 , are free of material misstatement. The audit involved examining , on a test basis , evidence
supporting the amounts and disclosures in the financial statements ; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation . The auditor concluded that there was a reasonable basis for
rendering an unqualified opinion that the City's financial statements for the fiscal year 2003, are
fairly presented in conformity with generally accepted accounting principles .
The independent audit of the financial statements of the City of Fort Collins was part of a broader,
federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies .
The standards governing Single Audit engagements require the independent auditor to report not
P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221 -6505 • FAX (970) 224-6107 3
www. fcgov.com
only on the fair presentation of the financial statements , but also on the audited government' s
internal controls and compliance with legal requirements , with special emphasis on the
administration of federal awards . The reports are available in the separately issued Single Audit
Report of the City of Fort Collins .
Management's Discussion & Analysis . Generally accepted accounting principles require that
management provide a narrative introduction , overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (" MD&A" ) .
Management has designed this transmittal letter to coordinate with the MD &A. Users of this report
should read this letter and the MDA&A . The MD&A begins on page 19 , immediately following
BOND1's independent audit report .
Profile of the City of Fort Collins
The City of Fort Collins , incorporated in 1872 , is located in north central Colorado , east of the
continental divide . It is the fifth largest city in Colorado in terms of population . The City's corporate
limits encompass 51 square miles of land . It has been growing rapidly over the last 20 years and
has had one of the strongest local economies in the nation . The City is the county seat of Larimer
County. It is also home to Colorado State University with an enrollment of over 25 , 000 students
and many Federal and state agencies . Public entities own about 30% of the land within the City's
corporate limits.
The City is a home rule city, organized under provisions of the Colorado Constitution . The City
Charter, adopted in 1953, provides for the council-manager form of local government. The voters
directly elect the mayor to serve a two-year term . Within districts , voters elect six Council members
on a non -partisan basis , to staggered four-year terms . The financial statements , schedules , and
statistical tables contained in this report include all funds and account groups under the control of
City Council . The Council is responsible for passing ordinances , adopting the two-year budget and
annual appropriations ordinance , appointing advisory board and commission members , and hiring
the city manager, city attorney, and municipal judge . The city manager is responsible for
implementing the policies and ordinances of Council , overseeing the day-to-day operations , and for
appointing service area directors and other staff members .
The City provides a full range of municipal government services to approximately 130 , 566
residents . These services include all general purpose municipal services authorized by its Charter,
including general government, public safety, streets and highways , health and welfare , culture and
recreation , transportation , public works , development, and public utilities . The City's utilities
include electric distribution , water treatment, wastewater treatment , and storm drainage .
Management includes component units in the reporting entity to conform to Governmental
Accounting Standards Board Statement No. 14 . The financial statements include all funds and
account groups that make up the legal entity of the " primary government" , namely the City, as well
as organizations for which the City is financially accountable . The City's reporting entity includes
the Downtown Development Authority , General Improvement District No . 1 , and the Fort Collins
Capital Leasing Corporation . Management has designed the financial statements to allow financial
statement users to distinguish between the primary government and its component units.
The Poudre Fire Authority provides fire protection services to the region around and including the
City and its residents. The City and Poudre Valley Fire Protection District created the Authority in
1982 to provide consolidated fire and emergency services within the territorial limits of both
entities . The Authority was created as an independent governmental authority under Colorado law
4 City Of Fort Collins
and is governed by its own board . The City accounts for the Authority as a joint venture . This
organizational arrangement has improved insurance ratings , lowered costs to taxpayers , enhanced
ability to respond to major fires , and eliminated duplicate support services . In addition to fire
protection , the Authority provides emergency medical services , hazardous materials response ,
inspection , public education , and investigation services . The Finance Department prepares
separate financial statements for the Poudre Fire Authority.
The City' s annual appropriations ordinance , adopted before the end of November of each year,
sets the foundation for the financial planning and control . Council adopts the budget every two
years , following a multi-month process of revenue estimation , spending requests from service
areas , study sessions , and internal meetings . The city manager provides the two-year budget to
Council in September of odd- numbered years . The Council is required to hold public hearings on
the budget and adopt it by the end of November. The appropriations ordinance is prepared and
adopted by fund and in the case of capital projects and grants , by project and grant .
The Charter requires balanced annual appropriations in which expenditures may not exceed
revenues and fund balances , with some exceptions for emergencies . During a fiscal year, the
Council , by recommendation from the city manager, may approve supplemental budget
appropriations . Within a fund , the city manager may transfer appropriations between programs .
Between funds and capital projects , the Council may make transfers based on city manager
recommendations .
In this report , management has provided budget to actual comparisons for each individual
governmental fund for which the Council has made appropriations . For the General Fund , this
comparison is presented on page 42 as part of the basic financial statements for the governmental
funds . For governmental funds , other than the General Fund , this comparison is presented in the
governmental fund section of this report, which starts on page 43 . Also included in the
governmental fund section are project-length budget-to-actual comparisons for each governmental
fund for which a project-length budget has been adopted .
Factors Affecting Economic and Financial Condition
For additional context to readers of the Comprehensive Annual Financial Report , management
provides the following comments about the economy and financial status .
Local economy. From the early 1990s to the middle of 2001 , the City experienced a period of
extremely strong economic growth . Many of the local technology firms expanded , which led to
more jobs and higher incomes . Due to the structure of the local economy, particularly the many
companies that export nationally and globally, the 2001 recession has proven to be a severe
setback . For the City, the recession has manifested itself as numerous layoffs , reduced hours , and
diminishing payrolls . This in turn leads to households lowering their spending and this directly
affects the City's major revenue source for governmental services , the sales and use tax . In 18 of
the last 24 months preceding the end of 2003 , total sales and use tax collections were below
budget projections . In 17 of the last 24 months total sales and use tax collections were lower than
the corresponding month of the prior year. The first five months of 2004 have seen solid growth .
Late in 2001 , the city manager provided a five-point strategy to weather an economic downturn .
As the weakening economy developed , the City executed the expenditure control plan and
reduced spending in 2002 by over $4 million and reduced 2003 spending by $4 .4 million .
In the following table , management displays a table of important indicators of the City' s local
economy . Employment growth in the county stalled in the last half of 2001 and has not regained
Comprehensive Annual Financial Report 5
momentum since . In the third-quarter of 2003 (the latest data available ), total jobs in Larimer
County declined by 1 , 826 or 1 , 50 % . Total wages were up 1 . 84% and average wages up 3 .2% .
Manufacturing jobs , a primary driver of personal income , decreased by 7 .3% . Total wages in the
manufacturing category were down 2 . 33% . For workers still employed , average wages rose by
5 .4 % . Government jobs were down by 14 % ; total wages and average wages each increased by
7 . 2 % .
The unemployment rate in the table is an annual average . Unemployment in Colorado is high but
appears to have stabilized . At the end of 2001 it was 5 . 2% , by the end of 2002 it reached 5 . 7% ,
during 2003 it reached a high of 6 . 5% (March 2003) and by the end of 2003 the rate fell back to
5 . 6% . This probably understates the level of unemployment because , following a recession , many
people become discouraged and stop trying to find work.
The essential economic indicators for the City were mixed in 2003 . Even though population grew
at 2 . 93% , single family housing permits declined . Use tax from business fell even with an increase
in the valuation of the new construction sector. Sales tax collections were down for the second
year in a row, a first in the City's history. Growth in inflation , as measured by the Denver-Boulder-
Greeley Consumer Price Index was about 0 , 87% lower than 2002 , the lowest reading in the last six
years . During the second half of 2003 , the index was the lowest it has been in the history of the
Denver- Boulder-Greeley regional index .
Key Economic Indicators for Fort Collins
1999-2003
Actual
1999 2000 2001 2002 2003
County Employment Data
Annual Unemployment Rate in Percentage 3 .08 2.96 3 .53 5 . 15 5.69
Actual Change (0.74) (0. 12) 0.57 1 .62 0.54
Total Employment (ES202) 3 -Quarter Average 116,641 122, 179 1229048 121 ,546 1193720
Percentage Change 2.79% 4.75% -0. 11 % -0.41 % - 1 .50%
City Building and Construction
Residential Building Permits 19892 11582 1 ,899 11540 19398
Percentage Change 11 . 10% - 16.38% 20.04% - 18.90% -9.22%
New Construction Valuation - Total $400,858,459 $3109921 ,759 $34796209126 $280,630, 125 $292,412,644
Percentage Change 35.41 % -22.44% 11 .80% - 19.27% 4.20%
City Sales & Use Tax Collections
City Sales and Use Tax Collections $63,881 ,484 S6592731761 $71 , 1687086 $68,200,543 $671694,3E
Percentage Change 11 .99% 2. 18% 9.03% -4. 17% -0.74%
Sales Tax Collections 49, 168,727 539642,507 56,857,422 565641972 56,313,789
Percentage Change 9.33% 9. 10% 5 .99% -0.51 % -0.44%
Use Tax Collections 14,712,757 11 ,63I ,254 149310,664 117635,571 111380,913
Percentage Change 21 .88% -20.94% 23 .04% - 18 .69% -2. 19%
Use Tax from Business 7987170831 593239400 75261050 5,2869393 41762,606
Percentage Change 30.53% -3237% 41 .38% -29.76% -9.91 %
City Population
Population 112,900 1185652 1223377 126,848 130,566
Percentage Change 3.60% 5.09% 3. 14% 3 .65% 2.93%
r
egional Consumer Price Index
enver-Boulder-Greeley CPI-U ( 1982-84= 100) 166.60 173 .20 181 .30 184.80 186.75
Percentage Change 2.90% 3.96% 4.68% 1 .939 1 .06%
6 City of Fort Collins
Despite the weakening economy, the City's financial health remained strong through 2003 . At
year-end , the City held $200 . 7 million in unrestricted fund balances , approximately $2 . 5 million less
than 2002 . Please see page 23 for more information about the City' s total assets .
Outlook for 2004=2005 . Management remains concerned about the viability of the local economy
and how slow the recovery from the recession will be . Historically, Colorado State University has
been a stable employer that has buffered the City from severe economic downturns . Due to the
severe cutbacks in the State of Colorado budget , the University may not be able to play as strong a
role to offset the impacts of the downturn . In addition , several regional manufacturing and high -
tech firms have reduced staffing levels and frozen wage levels over the last four years . The
outlook is for a long slow recovery .
While some of the foundation for a national economic recovery is in place , labor markets are still
weak and consumer confidence is still low . The City faces more competition for retail sales in
northern Colorado . Historically, Fort Collins has been a regional shopping magnet . However,
other cities (Loveland and Greeley) in northern Colorado have also expanded their retail bases .
The City's economy and corresponding revenue structure faces several risks . The first is the
extension of the recession or weakened economy . Colorado and other western states have been
hit especially hard by the downturn . Forecasters say that the Colorado economy is likely at the low
point of the downturn however, the turnaround will be gradual . The next major risk is the erosion of
the sales tax base due to transactions that occur over the Internet . As this method of commerce
continues to grow and if it retains preferential tax treatment , states and cities will lose more and
more sales taxes . Fort Collins will also face increased competition for retail sales as Loveland and
Windsor shopping venues are developed . The City will remain in its role as the primary city in
northern Colorado , but its economic base will face much stiffer competition from other regional
cities . The City will need to persevere in its diligent efforts to manage its resources while
responding to demand for services .
Long -term financial planning . Council and management are working on several long -term plans
that will affect the City ' s financial position . Through financial management policies , Council has set
priorities among the services it provides . For the past few years and into the immediate future
these policies put the highest priority on basic services . Below, management has highlighted a few
of the services for which long -term planning is underway .
Transportation . Transportation programs are supported primarily by two funds : Transportation
Fund and General Fund . Revenues from non-General Fund sources are projected to remain
relatively stable . Revenues from the General Fund are expected to be reduced which translates
into some service reductions . In an effort to add significant funding to the meet transportation
needs , the City management presented two transportation packages to the voters in April 2003 , an
additional one-quarter cent sales tax and a one-percent tax on construction . The packages were
defeated by the voters .
Water Utility Drought Response . After several consecutive years of below average precipitation ,
the City, like many other western states and cities , faced severe drought conditions . The City has
adopted water restrictions , adjusted reserves and has delayed some capital projects .
Police . In the 2002 budget, the City began to set aside money in an account for a new police
services building . Money has been earmarked from base budget revenue sources and will
continue for the next few years during which time the City will probably complete a long-term
financial obligation ( bonds or capital leasing ) to finance the construction of the facility. In addition ,
Comprehensive Annual Financial Report 7
the long-term planning budget calls for the addition of more police officers in each of the next ten
years to improve upon the current service standard .
Stormwater . Due to the 1997 flood , the Council has embarked on a master plan to improve
significantly the drainage flows in the City . In accordance with the approved stormwater capital
improvements and financing plan , the service-based fees for the stormwater utility have been
broadened and increased significantly in the last several years . Improvements to the City 's basins
and levees are scheduled to be completed within the next two years .
Financial Reporting , The City's Finance Department will continue its implementation of new
Governmental Accounting Standard Board Statements . For 2003 , the Department has
implemented Statement 40 . This new accounting standard will provide a more accurate
representation of the City's investment portfolio ' s credit risk and interest rate risk position .
Open Space and Natural Area Preservation . In 2002 , Council completed a review and adopted a
funding strategy for acquisition and maintenance of natural areas , community separators , and
open space . Proceeds from Larimer County' s sales tax for open space will provide the City with
over $ 100 million through 2018 . City voters extended the City 's dedicated sales tax levy for open
space and natural areas to 2030 .
Capital Projects . Finally, management has begun the process for the renewal of the Building
Community Choices taxes that will expire at the end of 2005 . Through planning and preparation ,
the City has been able to present a slate of needed capital projects to voters . The City has
successfully used this strategy to fund tax-supported capital needs since the 1970s .
Pension Fund Summary. In 2003 , the City maintained one defined benefit pension trust fund to
account for the General Employees ' Retirement Plan . During 2003 , the Plan produced an 18 . 8%
rate of total return compared to the actuarial investment assumption of 7 . 5% . At year-end , the
Plan held assets with a market value of $ 34 . 1 million , an increase of $5 million from the prior year.
The increase in assets is due to extraordinarily good investment results . The assets of the Plan
cover 77 % of the projected benefits . The City may need to increase the rate at which it is
contributing to the Plan .
Credit Ratings . To attain the lowest possible interest rates and to be sure it has the widest markets
for its bonds, the City obtains credit ratings from the major rating services . Stronger ratings lower
interest rates and the cost to taxpayers and users of City services . In some cases , the City may
also purchase insurance when the economic analysis shows more benefit than cost. Bond
insurance provides additional support for the creditworthiness of the bonds and improves ( lowers )
the interest costs . The City's most recent bond ratings are as follow :
Fort Collins Bond Issue Credit Ratings
Ratings
Issue Moody' s Standard & Poor's
Sales & Use Tax Revenue' Aa2 No rating
Highway Users Tax Revenue Aa2 No rating
Sewer Revenue' Al No rating
General Obligation Water Aal AA
Water Revenue A2 A+
Storm Drainage Revenue Al A+
Lease Certificates of Participation Aa2 No rating
`Fitch has rated the City's Sales & Use Tax Revenue Bonds "AA"
and the City's Sewer Revenue Bonds "AA-" .
8 City of Fort Collins
Credit rating agencies base their ratings of the City' s general government debt on a combination of
factors . These key factors include debt burden , economic characteristics , government
organization , and financial performance . The agencies do not view any one factor as most
important . They weigh strengths and weaknesses in each area within the context of potential
impact on issuer's ability and willingness to repay the debt . The statements below summarize the
City's credit position .
Moody's Investors Service believes
" Fort Collins' financial operation will continue to be characterized by a trend of ample reserves and
a strong cash position given the city's prudent fiscal management and continued revenue growth . .
. Moody's expects reserve levels to remain strong mitigating concerns associated with the city's
large dependence on sales and use taxes . Moody's expects that the city's conservative budgeting
and spending practices , which have sustained a sound financial position , will continue , and that
satisfactory financial operations will be maintained . " [2003 Sales and Use Tax Bond Rating]
Fitch Ratings stated :
"The 'AA' rating reflects Fort Collins' very strong debt service coverage, rapid amortization , and
overall economic health . The 'AA' rating also reflects low debt levels with no current plans to issue
additional sales and use tax revenue debt . Risks include possible revenue volatility due to future
economic fluctuations and the city's heavy reliance on sales and use taxes as a main source of
revenue . The Rating Outlook is stable . " [2003 Sales and Use Tax Bond Rating]
Cash Management . Through a treasury and investment management program , the Finance
Department maximizes investment earnings on temporarily idle cash while ensuring that adequate
moneys are available to make full and timely payments to vendors . The Department invests for
periods ranging from overnight to several years , based on need . In making investment decisions ,
staff considers the legality, security, and yield of the investment . In 2003 , the City earned
approximately $ 7 . 9 million on its fixed income investments . The yield on the City' s fixed income
investments (excluding the General Employees ' Retirement Plan ) was 2 . 6% .
Risk Management. During the mid- 1980s , the City instituted a risk management program . The
activities of the program are accounted for in the Self-Insurance Fund . The purpose of the
program is to analyze and provide for the City' s insurance needs and accumulate adequate
reserves for self- insurance . The City began self-insuring for workers compensation in 1989 . The
annual actuarial study performed in early 2004 shows that the recorded liability for workers
compensation and liability claims payable is reasonably adequate to cover all known claims and
incurred -but- not-reported claims as of December 31 , 2003 . The City also has a large retention
(deductible ) for all liability claims .
State Constitutional Growth Limit . In 1992 , the voters of the State approved an amendment to the
Colorado State Constitution . Now codified as Section 20 of Article X (the "Section " ) , the
amendment imposes annual revenue and spending growth limitations on all governments in the
State . In addition to the revenue and spending growth limitations , the Section requires voter
approval before the imposition of new taxes , tax rate increases , mill levy increases , or other
changes in policy that increases tax revenues . In the absence of voter approval , the Section
prohibits the creation of any multiple fiscal year debt or other financial obligation (except refinancing
at a lower rate ) . The Section requires that revenues that exceed the limit be returned to taxpayers
during the next calendar year. If revenues decrease in any fiscal year, the lower amount becomes
the new base for computing the next year' s limits .
Comprehensive Annual Financial Report 9
The Section provides for two components in setting the revenue and expenditure growth limits . The
first is the percentage change in the annual Denver- Boulder-Greeley Consumer Price Index for
Urban Consumers . The second component is percentage change in the actual value of all real
property within the City , due to construction of taxable improvements and annexation . For the 2003
fiscal year, the Consumer Price Index component was 1 . 93% and the local -growth component rose
by 3 . 5 % . When the combination of these two factors are applied to the 2002 revenue base , the
revenue limit for 2003 was approximately $ 131 . 5 million . The revenue subject to the limit in 2003
totaled approximately $ 125 million . This amount is below the limit by $6 . 5 million . The Section has
a separate , but overlapping , revenue limit for property tax . The City exceeded the property tax limit
by about $2 .4 million . The City will use revenue over the limit for transportation and public safety
projects . For projection purposes , the City anticipates that the Consumer Price Index will trend
lower and the local growth component will be higher in 2004 .
In 1993 , the City' s voters approved an amendment to the City Charter to classify the utilities as
enterprises . Therefore , they are not subject to the provisions of the Section . All other funds of the
City are subject to the Section . Certain revenue , for example , proceeds from property sales and
federal grants , is exempt from the limit. In 1997 , voters approved multi -year retention and use of
revenue over the growth limit. The City may use the retained revenue only for spending in four
categories : public health and safety ( including environmental monitoring and mitigation ), growth
management , transportation services , and maintaining and repairing public facilities .
In accordance with the Section , the City has established an emergency reserve equal to three
percent of governmental revenue to use for declared emergencies . In the opinion of the City' s
management, the City complies with all provisions of the Section . In the 2003 Report, both the
required emergency reserve and the amount in excess of the revenue limit are included in the
reserved fund balance of the General Fund on page 38 .
Awards and Acknowledgements
Independent Audit. Colorado law and the City Charter require the City to have its financial
statements audited by an independent firm of certified public accountants . The Council selected
BONDI & Co. LLC to fulfill the requirement. BONDI provided an unqualified opinion on the 2003
financial statements .
Certificate of Achievement for Excellence in Financial Reporting . The Government Finance
Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Fort Collins for its comprehensive
annual financial report for the year ended December 31 , 2002 . This was the seventeenth
consecutive year that the City has achieved this prestigious award . In order to earn a Certificate of
Achievement , a governmental unit must publish an easily readable and efficiently organized
comprehensive annual report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements . We have included a reproduction of the Certificate of
Achievement at the end of the introductory section of the comprehensive annual financial report . A
Certificate of Achievement is valid for a period of one year only . We believe that our current
comprehensive annual financial report continues to meet the requirements of the Certificate of
Achievement Program and we will submit it to the GFOA to determine its eligibility for another
certificate . The 2002 Report also received a " Commendable Service" classification from the
Cayenta Outstanding Community Awards .
10 City of Fort Collins
Award for Distinguished Budget Presentation . The GFOA recognized the City with an award for
Distinguished Budget Presentation for its two-year budget for fiscal years 2002-2003 . This marked
the seventeenth consecutive time the City received the Award . In order to receive this award , a
governmental unit must publish a budget document that meets program criteria as a policy
document, an operations guide , a financial plan , and as a communications device .
Acknowledgments. We recognize the dedicated efforts of all officials and staff involved in
managing and accounting for the City's financial operations . The process of financial planning ,
management, and accounting requires a team effort by City Council and City staff to be successful .
The preparation of this 2003 Comprehensive Annual Financial Report was made possible by the
dedicated service of the entire Finance Department . We would like to recognize the members of
the Accounting Division who worked many extra hours to ensure the completion of this document
and fulfill other financial responsibilities over the past few months . We also thank BONDI & CO. LLP,
the firm that serves as the City's external auditor. Staff members from BONDI have been very
helpful in meeting audit report deadlines . Through the challenges , we are resolved to deliver the
best possible services to the Fort Collins community.
Respectfully submitted ,
ZV
Jo n F . Fischbach Alan J . Krcmarik Charles M . Seest, CPA
City Manager Financial Officer Accounting & Financial
Reporting Manager
Comprehensive Annual Financial Report 1
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Fort Collins ,
Colorado
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31 , 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
OFMrot _
g AM
A"
a�n President
s
C
Executive Director
12 City of Fort Collins
City of Fort Collins 2003 Organization Chart
Residents and Customers
of the
City of Fort Collins
"I = V
Council and Mayor
Boards & Commissions
City Attorney City Manager Municipal Judge
Component Units City Clerk Joint Ventures
Downtown Development Authority Block 31
Fort Collins Capital Leasing Corporation Fort Collins-Loveland Airport
General Improvement District No. 1 Harmony Library
Poudre Fire Authority
Platte River Power Authority
North Front Range Transportation
& Air Quality Planning Council
Administrative Communication & Community Planning &
Services Technolo¢v Services Environmental Services
Finance Communication & Advance Planning
Human Resources Public Involvement Building & Zoning
Operations Services Geographic Information Systems Current Planing
Information Technology Natural Resources
Cultural, Library, & Police Services Transportation Services Utility Services
Recreational Services
Cultural Services Information Services Engineering Light & Power
Library Investigative Services Streets Stormwater
Parks Uniformed Services Traffic Operations Wastewater
Recreation Transit Services Water
Transportation Planning
Transportation Demand
Management
Comprehensive Annual Financial Report 13
City of Fort Collins , Colorado
List of Elected and Appointed Officials
Elected Officials : Mayor and City Council
RandolphR. Martinez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mayor
William J. Bertschy,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mayor Pro Tem, District I Council Member
Eric C . Hamrick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . District 3 Council Member
Kurt Kastein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . District 4 Council Member
David Roy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . . . . . . . . . . District 6 Council Member
Marty Tharp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . District 5 Council Member
Karen Weitkunat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . District 2 Council Member
Council Appointed Officials
John F . Fischbach. . . " . , . . , . . , . . . . . . . . . . I ., . . . . . . . . . . . . . . . . . City Manager
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WandaKrajicek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Clerk*
StephenJ. Roy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Attorney
Kathleen Lane . . . . . . . . . . . . . . . . . . . . . Municipal Judge
. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* City Manager appointed, City Council approved.
Executive Lead Team
JohnF . Fischbach. , . , , . , , . , . , . . . . . . . . . 64 0 6 * 4 4004 0000010 , 6 * 4 004 Poo 01 , 110 , City Manager
DianeJones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deputy City Manager
Darin Atteberry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant City Manager
Martin J. Heffernan . . . . . . . . . . . . . . . . . . . . . . . Director of Cultural, Library and Recreational Services
Greg Byrne . . . . . . . . . . . . . . . . . Director of Community Planning and Environmental Services
Ron Phillips . . . . . . " . . . . . . . . & * " bad 604 04 * 01 , 1111 , . . . . . . . . Director of Transportation Services
Mike Smith, . , . , . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. a # , 4 * & 4 0 * , . * 0 # * * . Director of Utility Services
DennisHarrison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Police Chief
John Mulligan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . Poudre Fire Authority Chief
StephenJ. Roy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . . . . . City Attorney
WandaKrajicek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Clerk
Finance Department
AlanJ . Krcmarik . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Officer
Sherrie Temple ., . , . 01 . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant Finance Director
Charles M . Seest, CPA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting and Financial Reporting Manager
James B .O ' Neill II, CPPO . . . . . . . . . . . . . . . . . . . . . . . . . . . Director of Purchasing and Risk Management
14 City of Fort Collins
FINANCIAL SECTION
Comprehensive Annual Financial Report 15
THIS PAGE LEFT BLANK INTENTIONALLY.
16 City of Fort Collins
t
BONDI & Co. LLC
44 INVERNIESS DRIVE EAST (303) 799-M6 PHONE
ENGLEWOOD, COLORADO $0112 CERTIFIED PUBLIC ACCOUNTANTS (800) 250-9093 TOU. FREE
www,bondico.corn MANAGEMENT CONSULTANTS (303) 799-6926 FAX
Honorable Mayor and Members
of the City Council and City Manager
City of Fort Collins
Fort Collins , Colorado
Independent Auditors' Report
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units , each major
fund , and the aggregate remaining fund information of the City of Fort Collins, Colorado,
as of and for the year ended December 31 , 2003 , which collectively comprise the City's
basic financial statements as listed in the table of contents . These financial statements are
the responsibility of the City of Fort Collins , Colorado ' s management . Our responsibility is
to express an opinion on these basic financial statements based on our audit .
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement . An audit includes
examining, on a test basis , evidence supporting the amounts and disclosures in the financial
statements . An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion .
In our opinion, the financial statements referred to ' above present fairly, in all material
respects , the respective financial position of the governmental activities , the business-type .
activities , the aggregate discretely presented component units , . each major fund , and the
aggregate remaining fund information of the City of Fort Collins , Colorado , as of December
31 , 2003, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General , Sales and Use Tax, and
Transportation Services funds for the year then ended in conformity with accounting
principles generally accepted in the United States of America .
17
Affilisse Offices Woddwi&
Honorable Mayor and Members
of the City Council and City Manager
City of Fort Collins
Fort Collins, Colorado
In accordance with Government Auditing Standards, we have also issued our report dated
May 7 , 2004 on our consideration of the City of Fort Collins, Colorado' s internal control
over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations , contracts, and grants . That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this
report in considering the results of our audit.
The Management' s Discussion and Analysis on pages 19 through 31 , the Schedule of Net
Pension Obligation, Pension Cost and Employer Contributions on page 78 , and the
Modified Approach for City Streets Infrastructure Capital Assets on pages 79 through 80,
are not a required part of the basic financial statements but are supplementary information
required by the Governmental Accounting Standards Board . We have applied certain
limited procedures, which consisted primarily of inquiries of management regarding the
methods of measurement and presentation of the supplementary information . However, we
did not audit the information and express no opinion on it.
Our audit was made for the purpose of forming opinions on the financial statements that
collectively comprise the City of Fort Collins Colorado's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and
statistical tables are presented presented for purposes of additional analysis and are not a required
part of the basic financial statements . The combining and individual nonmajor fund
financial statements have been subjected to the auditing procedures applied in the audit of
the basic financial statements and , in our opinion , are fairly stated in all material respects
in relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and , accordingly, we express no opinion on them.
May 7 , 2004 BONDI & Co. uc
18
MANAGEMENT ' S DISCUSSION AND ANALYSIS
The City of Fort Collins (the City) offers the readers of the City's financial statements this narrative overview and
analysis of the financial activities for the fiscal year ended December 31 , 2003 . In addition to this overview and
analysis based on currently known facts, decisions and conditions, the City would encourage readers to consider the
information presented in the City' s letter of transmittal and the City' s financial statements, which begin on pages 3
and 33 of this report, respectively.
Financial Highlights
➢ The assets of the City exceeded its liabilities at the end of the fiscal year ended December 31 , 2003 by $997
million (net assets). Of the net asset balance, $201 million is unrestricted and is available to meet the
government's ongoing obligations in accordance with the City' s fund designations and fiscal policies.
➢ The City's net assets increased by $48 million (5 . 1 %). The governmental net assets increased by $23 million
(4 .4%) and the business-type assets increased by $25 million (5 .9%).
➢ The General Fund, the City 's primary operating fund, reported an increase of $4. 8 million ( 14. 8%) on a current
financial resource basis.
➢ As of December 31 , 2003, unreserved fund balance for the General Fund was $ 17. 1 million or 24.0% of total
General Fund expenditures of $71 . 3 million.
➢ The City's total long-term debt decreased by approximately $ 12.6 million during the current fiscal year. Within
that activity, the City' s governmental debt and business-type debt decreased by $2 .3 million and $ 10.3 million,
respectively. The City issued $5 .7 million in refunding bonds during the year to take advantage of favorable
market interest rates.
➢ The City' s revenues from local sources, primarily sales and use taxes, showed a significant shortfall from
original budget estimates during fiscal year 2003 . A slight decline in business and construction activity also
impacted other fees and charges collected by the City. These factors were monitored throughout fiscal year
2003 , and the City cut $2.5 million from the original overall budget as a result. These lower revenues will also
impact the unreserved fund balances and operating revenues available to the City in 2004. City management
continues to evaluate primary revenue sources and expenditures. City management also imposed a wage freeze
during 2003 and extended it to 2004 in an attempt to restrain the growth of expenditures.
➢ The City has also been impacted by a drought in the western United States that is now entering its fifth year. As
a result of water conservation by residents and other customers over the last year, the City's Water Utility was
able to lift the watering restrictions and reduce the restructured water rates it imposed during 2003 in response
to the drought. City management will continue to monitor the drought and its long-term effects on the both the
City ' s ability to provide water at current service levels and also meet the demand levels of projected growth and
development.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City' s basic financial statements. The
City' s basic financial statements consist of the following three components:
1 ) Government—Wide Financial Statements,
2) Fund Financial Statements and
3) Notes to the Financial Statements.
Other supplementary information is also included at the end of the report.
Comprehensive Annual Financial Report 19
Government-Wide Financial Statements. The government—wide statements are designed to provide
readers with a broad overview of the City's finances using the accrual basis of accounting, the basis of accounting
used by most private-sector businesses.
The statement of net assets presents information on all of the City' s assets and liabilities. The difference between
assets and liabilities is reported as net assets. Over time, increases and decreases in net assets may provide an
indication of whether the City's financial position is improving or deteriorating.
The statement of activities presents information reflecting how the City's net assets have changed during the fiscal
year just ended. All changes in net assets are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future periods (e.g., uncollected taxes and earned but
unused vacation leave).
The government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of the City include general government, public safety - police and judicial, public safety - fire service
provided under an intergovernmental agreement, cultural, library and recreational services, community planning and
environmental services, and transportation. The business-type activities of the City include light and power, water,
wastewater, storm drainage, and golf.
The government-wide financial statements also include the City of Fort Collins ' Downtown Development Authority
as a discretely presented component unit of the City. In prior years, the North Front Range Transportation and Air
Quality Planning Council (Planning Council) was presented as a discrete component unit of the City. However,
during the fall of 2003 , the Planning Council secured adequate funding to sustain its operations independent of the
City. As a result, the Planning Council is now considered a joint venture in which the City participates alongside
other local government entities in the region. As of year-end 2003 , the Planning Council will issue its own financial
statements, which should be reviewed for additional information. See Note 1 in the notes to the City' s financial
statements for more details regarding these entities and their relationship to the City.
Fund Financial Statements. Traditional users of the City' s financial statements will find the fund financial
statement presentation more familiar. The focus is now on major funds rather than fund types.
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. A major fund should generally meet both of the following criteria: 1 ) total assets,
liabilities, revenues, or expenditures/expenses are at least 10% of the corresponding total (assets, liabilities, etc.) for
that fund type (i.e. , governmental or enterprise funds) and 2) total assets, liabilities, revenues, or
expenditures/expenses of the individual governmental or enterprise fund are at least 5% of the corresponding total
for all governmental and enterprise funds combined.
The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to report those same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide statements, the fund
financial statements are prepared on the modified accrual basis of accounting. Under the modified accrual basis of
accounting, revenues are recognized when they become measurable and available, and expenditures are recognized
when the related fund liability is incurred, with the exception of long-term debt and similar long-term items which
are recorded when due. Therefore, the focus of the governmental fund financial statements is on near-term inflows
and outflows of spendable resources as well as on the balance of spendable resources available at the end of the
fiscal year.
20 City of Fort Collins
Since the focus of the governmental funds is on near-term resources, it is useful to compare the information
presented for governmental funds with similar information presented for governmental activities in the government-
wide financial statements. To facilitate this comparison, reconciliations are provided for both the governmental fund
balance sheet and the governmental statement of revenues, expenditures, and changes in fund balances.
Information is presented separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures and changes in fund balances for the General Fund, Sales & Use Tax Special Revenue
Fund, the Transportation Special Revenue Fund and the Capital Projects Fund. These four funds are considered to
be major funds. Data from the other governmental funds is combined into a single, aggregated presentation.
Individual fund data for each of these non-major funds is provided in the form of combining statements located
within the supplementary information following the notes to the financial statements.
The City adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison statement
has been provided to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 38-44 of this report.
Proprietary funds, The City maintains two different types of proprietary funds, enterprise and internal service
fiends. The proprietary fund financial statements are prepared on the accrual basis of accounting. Enterprise funds
are used to report the same functions presented as business-tune activities in the government-wide financial
statements. The City uses enterprise finds to account for its light & power, water, wastewater, storm drainage and
golf operations. Internal service funds are accounting devices used to accumulate and allocate costs internally
among the City's various functions. The City uses internal service funds to account for employee benefits provided
by the City, its communications system, its fleet of vehicles and its self-insurance programs. Aside from the fleet of
vehicles, these services predominantly benefit the governmental rather than business-type functions, As such, they
have been included within the governmental activities in the government-wide financial statements. The activity in
the Equipment Fund used for monitoring the fleet of vehicles is allocated between the governmental and business-
type activities based upon actual usage. In addition, the utilities use an internal service fund to account for customer
and administrative services. Because this fund is used solely by the utilities, it is included within the business-twe
activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The Light & Power, Water, Wastewater and Storm Drainage enterprise funds are considered to be major
funds and are therefore presented separately within the proprietary fund financial statements. The Golf Fund is
presented as a non-major enterprise fund. All internal service funds are considered to be non-major funds and
therefore are combined into a single, aggregated presentation in the proprietary fund statements. Individual fund
data for each of the non-major proprietary funds is provided in the form of combining statements located within the
supplementary information following the notes to the financial statements.
The City adopts an annual appropriated budget for all of its proprietary funds. A budgetary comparison statement
has been provided to demonstrate compliance with this budget.
The basic proprietary fund financial statements can be found on pages 46-51 of this report.
Fiduciary funds. The City maintains two different types of fiduciary funds, trust and agency funds. The fiduciary
fund financial statements are prepared on the accrual basis of accounting. The fiduciary funds are used to account
for resources held by the City in a trustee capacity or as an agent for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds
are not available to support the City' s own programs. The funds underlying each of the fiduciary fund types are
combined into a single, aggregated presentation in the fiduciary fund statements. Individual fund data for each of
the fiduciary funds is provided in the form of combining statements located within the supplementary information
following the notes to the financial statements.
Aside from the General Employees ' Retirement Plan Trust fund, the City does not adopt an annual appropriated
budget for its fiduciary funds. A budgetary comparison statement for the General Employees ' Retirement Plan Trust
fund has been provided to demonstrate compliance with the budget.
Comprehensive Annual Financial Report 21
The basic fiduciary fund financial statements can be found on pages 52-53 of this report.
Notes to the Financial Statements. The notes to the financial statements are considered an integral part of
the basic financial statements since they provide additional information needed to gain a full understanding of the
data provided in both the government-wide and fund financial statements. The notes to the financial statements can
be found on pages 55-77 of this report.
Required Supplementary Information. In addition to the basic financial statements, which include the
accompanying notes, this report also presents required supplementary information regarding the City's net pension
(obligation)/asset and the annual pension cost to provide pension benefits to the employees covered by its retirement
plan. The City has also elected to use the modified approach to account for and report its street infrastructure capital
assets. The City has included required supplementary information that explains the modified approach and recent
assessments that have been performed using the related asset management system. These schedules can be found on
pages 78-80 of this report.
Combining Statements. The combining statements referred to earlier in connection with the non-major
governmental funds, non-major enterprise fund, internal service funds, and fiduciary funds are presented following
the required supplementary information. In addition, budget statements for the Capital Projects Fund, the major
enterprise funds, and the component unit are also presented following the required supplementary information.
Infrastructure Assets. While the City elected to early implement the major model portions of Governmental
Accounting Standards Board Statement No. 34 (GASB 34), Basic Financial Statements — and Management's
Discussion and Analysis (MD&A) — for State and Local Governments, the City deferred implementation of the
infrastructure portion of the Statement for current year activity and inception-to-date balances until 2002 and 2003 ,
respectively. GASB 34 requires the City to have completed this implementation, including the inception to date
balances, by the end of fiscal year 2006 .
Historically, infrastructure (roads, bridges and capital improvements other than buildings) has not been reported nor
depreciated in governmental financial statements. Infrastructure represents a significant portion of a government' s
assets. Similarly, the outflow of resources expended by a government to maintain infrastructure also represents a
sizable portion of its operations. GASB 34 requires that the infrastructure assets be valued and reported within the
governmental column of the government-wide statements.
In addition, GASB 34 requires that the government elect to either (a) depreciate these assets over their estimated
useful lives or (b) use the modified approach whereby the government develops an asset management system to
maintain the service delivery potential of these assets indefinitely. In 2002, the City elected to utilize the modified
approach to address a majority of its infrastructure assets, particularly its street system capital assets. In using the
modified approach, the City will be required to utilize its asset management system and periodically (at a minimum
every three years) by category, measure and demonstrate its maintenance of the assets at a locally determined level
of service. Over time, this information regarding the condition and maintenance of the government's infrastructure
assets should assist the readers of the financial statements in evaluating the local government. See the required
supplementary information for further detail.
Government-wide Financial Analysis
This is the third year that the City has presented its financial statements under the new reporting model required by
GASB 34. Adjustments have also been made to some prior year balances due to restatements related to placing the
inception to date infrastructure balances in the financial statements.
22 City of Fort Collins
Statement of Net Assets
The following table reflects the condensed Statement of Net Assets .
Statement of Net Assets
as of December 31 ,
(amounts expressed in thousands)
Governmental Business-type Total
Activities Activities Primary Government
2003 2002 2003 2002 2003 2(L02
Current and other assets $ 1791591 $ 187, 714 $ 127, 752 $ 139,455 $ 307,343 $ 327, 169
Capital assets 448,385 226,840 463,768 440,768 912* 153 667,608
Total assets 627,976 414,554 591 ,520 580,223 1 ,219,496 994,777
Other liabilities 42,665 43,818 18,491 21 , 505 61 , 156 659323
Long-term liabilities 31 , 989 349235 128,835 139, 175 1609824 1739410
Total liabilities 74,654 78,053 147,326 1609680 221 ,980 238,733
Net assets :
Invested in capital assets,
net of related debt 419,281 195,688 327,793 2910049 747, 074 4869737
Restricted 42,593 47, 126 71117 19,012 49,710 66, 138
Unrestricted 91 ,448 93, 687 109,284 10%482 2000732 203, 169
Total net assets $ 553,322 $ 336,501 $ 444, 194 $ 419,543 $ 997,516 $ 756,044
For more detailed information see the Statement of Net Assets on page 35 of this report.
By far the largest portion of the City' s net assets (74. 9%) reflect its investment in capital assets (e .g., land, buildings,
machinery and equipment), less any debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City' s investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot
be used to liquidate these liabilities.
An additional portion of the City' s net assets (5 .0%) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets, $200,732,000, may be used to meet the
City's ongoing obligations to its citizens and creditors.
The government' s total net assets increased by $48, 109,000 during the current fiscal year. This is due to growth in
the governmental and business type activities of $23 ,458,000 and $24,651 ,000, respectively. This is primarily due
to expansion of both the City' s streets ' and utilities ' infrastructure, which are funded by dedicated revenue sources
as well as contributed capital. During 2003 , street infrastructure capital assets increased by $9. 6 million and
utilities ' infrastructure increased by $24 . 1 million. In addition, the City' s capital land balance used in governmental
operations increased by $6. 7 million dues to significant acquisition of open space by the Natural Areas department.
Changes in Net Assets
The following table reflects a condensed summary of activities and changes in net assets.
Comprehensive Annual Financial Report 23
Statement of Activities & Changes in Net Assets
December 31,
(amounts expressed in thousands)
Governmental Business-type Total
Activities Activities Primary Government
2003 2002 2003 2002 2003 2002
Revenues:
Program revenues:
Charges for sevices $ 31 ,462 $ 31 ,215 $ 121 ,798 $ 118,679 $ 153,260 $ 1499894
Operating grants & contributions 59716 7,189 182 58 5,898 79247
Capital grants and contributions 16,215 36,973 12,696 12, 152 28,911 497125
General revenues:
Sales & use taxes 68,376 699519 68,376 699519
Property taxes 132903 139503 13,903 139503
Other taxes and fees 15,708 15,416 15,708 153416
Investment earnings 2,820 52684 31041 4,719 5,861 10,403
Other 512 3 ,335 164 975 676 4,310
Total Revenues 154,712 182,834 1379881 136,583 292,593 319,417
Expenses:
General government 229443 20,394 22,443 20,394
Public safety- police & judicial 229480 22,339 22,480 22,339
Public safety- fire service under IGA 12,682 12,620 12,682 12,620
Cultural, library & recreational svcs 24,777 28,687 24,777 28,687
Community planning & -
environmental services 11 ,428 11 ,582 11 ,428 11 ,582
Transportation 35,261 429134 35,261 429134
Interest on long-term debt 1 ,237 19968 19237 19968
Light & power 71 ,007 68,982 71 ,007 %982
Water 2%235 199141 20,235 19, 141
Wastewater 13,759 14,357 13 ,759 14,357
Storm drainage 62826 6,499 63826 6,499
Golf 2,349 2,303 2,349 2,303
Total expenses 1302308 13%724 114,176 111 ,282 2442484 251 ,006
Increase in net assets before transfers 24,404 43,110 23,705 25,301 48,109 68,411
Transfers (946) 113 946 (113) -
Increase in net assets 232458 43,223 24,651 25,188 489109 68,411
Net assets - beginning restated 52%864 2939278 41 %543 3947355 949,407 6873633
Net assets - ending $ 553,322 $ 336,501 $ 444, 194 $ 419,543 $ 997,516 $ 756,044
For more detailed information see the Statement of Activities on pages 36-37of this report.
The above condensed summary of the City's governmental and business type activities for the period ended
December 31 , 2003 reflects net assets increasing by $48, 109,000. The prior period is also included for comparative
purposes. In addition, revenue and expense graphs have been presented below to enhance the reader's
understanding of the current year activities .
24 City of Fort Collins
Governmental Activities
Governmental Activities increased the City's Net Assets by $23,458,000.
2003 Revenues by Source -- Governmental Activities
S154.7 million
Investment Other
earrings
Otbertaxes 1•e% l Charges for
and fees services
8.4%
Properly tons _
9.0%
Operating grards l
contributions
3.7%
Capital grants and
contrftdiona
Sales l use togs 10.5%
44.2%
L
2003 Expenses and Program Revenues
-- Governmental Activities
50
40
y- UP[ogii am Expense
m 30 O R ogr am Revenue
0
-0
10
0
Genes at Tianspoitation Community
Govei nmein Planning 4
Envii onmmrtal
Set vices
Activities
Comprehensive Annual Financial Report 25
Business-type Activities
Business-type Activities increased the City's Net Assets by $24,651 ,000.
2003 Revenues by Source -- Business -type Activities
S137 .9 million
i appal gl auts and IIN6stlnent 411110.1
C 01rt1aNltlOns - 4d1111I1gs — 0
Opetatiw31p alas a
c nnU lbinbms - -
0
--- _ Coal lies fol
-- SFI VIC es
fll
2003 Expenses and Program Revenues
-- Business -type Activities
30
TO
60
o s0 --
■Pt oqI am Expense
'o 40 nProglam Revenue
30
>0
10 —
Ligln & Powei Watel Wastee.atel Stol In Di ainAge (30"
Ilcirmlas
26 City of Fort Collins
Governmental activities. Governmental activities increased the City' s net assets by $23 ,458,000, accounting for
48. 8% of the City' s overall increase in net assets. Key elements of this change are due to the following:
➢ Sales & use tax revenue decreased by $ 1 , 143,000, ( 1 .6%) during the year.
➢ Property tax revenue increased by $400,000 (2.9%) during the year. This growth is attributable to
new construction and annexations from Larimer County.
➢ Intergovernmental revenues decreased by $ 5,828,000 (25 .0%) during the year due to decreased
activity in Transfort caused by a delay on the $2 million Phase II of the CSU Transit Center and a
significant drop-off in Greater Outdoor Colorado State funding for the Natural Areas acquisitions.
➢ Investment earnings decreased by $2,864,000 (50.4%) during the year. This was primarily due to the
difficult rate environment in 2003 as well as the City drawing upon its reserves to address the budget
shortfall.
➢ Franchise fees for telephone, gas and cable services increased by $21 ,000 (2 . 1 %) during the year.
➢ In conjunction with reporting the street system infrastructure, capital contributions of $6.8 million
were recorded. In 2003 , the City recorded $22.4 million of capital contributions for street
infrastructure. These contributions represent streets in new subdivisions that were deeded to the City.
➢ Of the remaining change in revenues (a decrease of $3 . 1 million) resulting from governmental
activities, $ 1 . 1 million related to a one-time sale of land from a Special Improvement District in 2002 .
➢ Of the overall decrease in governmental expenses $9,416,000, police experienced a decrease of
$ 1 ,042,000 and fire services experienced an increase of $62,000.
➢ Transportations services experienced a decrease of $6,931 ,000 due to a project delays such as the
CSU Transit Center and overall reduction in usage of rolling stock and the related maintenance costs
for vehicles and equipment.
Business-type activities. Business-type activities increased the City' s net assets by $24,651 ,000, accounting for
51 .2% of the City' s overall increase in net assets . Key elements of this increase are due to the following :
➢ Charges for services increased by $3 , 119,000 (2 . 6%) during the year. This growth is attributable to a
10% rate increase to offset the cost of expanding the storm drainage system to address demands on
storm drainage and also adhere to new federal and local standards. It should be noted that the storm
drainage fees are flat rates not based on consumption. Although the water and wastewater utilities
experienced decreases in usage, charges in service still increased as a result of the City imposing
water conservation rates and a 2% increase, respectively.
➢ Capital contributions increased by $544,000 (4.3 %) during the year. This increase reflects a return to
a more modest level of growth that is representative of the City's recent experience.
➢ Investment earnings decreased by $ 1 ,678,000 (35 .6%) during the year. This was primarily due to the
difficult rate environment in 2003 as well as the City drawing upon the construction escrow related to
the 2002 Stormwater Bonds.
Financial Analysis of the City' s Funds
As noted previously, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the City ' s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
Comprehensive Annual Financial Report 27
requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$ 126,991 ,000, a decrease of $5 ,345,000 in comparison with the prior year. Approximately $93 ,368,000 (73 .5% of
that amount) constitutes unreserved fund balance, which is available for spending at the government' s discretion.
The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already
been committed 1 ) to liquidate contracts and purchase orders of the prior period ($ 17,448,000), 2) to pay debt
service ($917,000), 3) to fund a state constitution mandated emergency reserve ($3,380,000), 4) to utilize excess
revenues as defined by the state constitution for purposes approved by the electorate ($2,393,000), 5) to pay for the
underlying specific programs, the undesignated balance of the non-major special revenue funds ($4,093 ,000), and 6)
for a variety of other restricted purposes ($5,392,000) .
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved fund
balance of the General Fund was $ 14,794,000, while the total fund balance equaled $36,797,000.
The fund balance of the City' s General Fund experienced an increase of $4,755,000. This was primarily due to the
wage freeze imposed by City management in 2003 to address the shortfall in revenues.
The Sales & Use Tax Special Revenue Fund tracks the primary revenue source for the City. At the end of the
current fiscal year, unreserved fund balance of the Sales and Use Tax Special Revenue Fund was $2,361 ,000, while
the total fund balance equaled $ 10,959,000.
The fund balance of the Sales & Use Tax Special Revenue Fund experienced a decrease of $3 ,068,000. This was
primarily due to City utilizing the reserves in this fund to address the shortfall in sales & use tax revenue mentioned
above.
The Transportation Special Revenue Fund is another major governmental fund of the City. At the end of the
current fiscal year, unreserved fund balance of the Transportation Special Revenue Fund was $2,930,000, while the
total fund balance equaled $5 ,310,000.
The fund balance of the Transportation Special Revenue Fund experienced an increase of $513 ,000. This was due
to collection of a $222,000 advance provided as of year-end 2002 to the North Front Range Transportation and Air
Quality Planning Council as well as a decline in expenditures due to the delay in transportation projects.
Proprietary funds. The City ' s proprietary funds provide the same type of information found in the government-
wide financial statements, but in more detail.
The unrestricted net asset balances and the growth in net assets of the City' s proprietary funds (including the major
enterprise funds) are reflected in the following table.
Change in Net Assets - Proprietary Funds
(amounts expressed in thousands)
Unrestricted Change in
Net Assets Net Assets for
at 12/31 /03 Yr Ended 12/31 /03
Major Enterprise Funds
Light & Power $ 36,826 $ 4,699
Water 36,291 10, 515
Wastewater 21 ,596 31252
Storm Drainage 12,956 61035
Total of Major Enterprise Funds
Other Enterprise Fund 588 (54)
Total Enterprise Funds 108v257 24,447
Internal Service Funds 109393 (30589)
Total Proprietary Funds $ 118,650 $ 200858
28 City of Fort Coffins
Component Unit. The DDA uses governmental fund accounting. The unrestricted net assets of the DDA amounted
to $508,000 . The total change in net assets for the DDA was an increase of $ 1 ,456,000. See the component unit
columns on the government-wide financial statements on pages 35-37.
Prior to 2003 , the City also included the North Front Range Transportation and Air Quality Planning Council
(Planning Council) as a component unit. During the fall of 2003 , the Planning Council secured adequate funding to
sustain its operations independent of the City of Fort Collins. Separately issued financial statements are available
upon request from the Planning Council.
Budgetary Highlights
Governmental Funds
General Fund. The increase from the original budgeted expenditures to the final budget amounted to $ 12,069,000
and can be summarized as follows:
➢ Police department additional appropriations of $6,064,000, which were primarily for a computer aided dispatch
system ($4.3 million) and the lease purchase of vehicles and equipment ($ 1 .2 million).
➢ Reappropriation of $3 ,653,000 for the completion of projects not completed during fiscal year 2002 .
➢ Other appropriations of $2,352,000 for new grants and other various programs.
General Fund. The variance between actual expenditures and the final budget amounted to $20,300,000 and can be
summarized as follows :
➢ Police department had unspent appropriations of $4,381 ,000, which were primarily for the computer aided
dispatch system replacement ($3 . 8 million) that remains to be completed as well as unexpended grant awards
($238,000) .
➢ Community planning and environmental service had unspent appropriations of $3 ,981 ,000, which were
primarily a result of land purchases not completed under the City' s competitive process ($ 1 .5 million),
consultants not used on City planning projects ($600,000) and unexpended grant awards ($286,000).
➢ City management also froze $3 .3 million of appropriations in response to the second consecutive year of a
shortfall in sales & use tax revenues.
➢ Appropriations totaling $ 1 .4 million that were intended for equipment purchases were also delayed.
➢ The remaining $7,238,000 of unspent appropriations can be attributed to the wage freeze and other cost saving
measures that were implemented throughout the City in response to the shortfall in revenues .
Capital Asset and Debt Administration
Capital Assets. The City' s investment in capital assets for its governmental and business-type activities as of
December 31 , 2003 amounted to $912, 153 ,000 (net of accumulated depreciation). This investment in capital assets
includes land, water rights, buildings and improvements, machinery, equipment, and light & power, water,
wastewater and storm drainage infrastructure as well as street system infrastructure.
Comprehensive Annual Financial Report 29
Net of Depreciation
as of December 31 ,
(amounts expressed In thousands)
Governmental Business-type Total
Activities Activities Primary Government
2003 2002 2003 2002 2003 2002
Land, water rights, intangibles $ 629112 $ 573508 $ 46,053 $ 45, 189 $ 1080165 $ 102,697
Street system infrastructure 245, 595 530306 - - 245,595 53,306
Construction in progress 17,688 276179 190501 26,935 379189 54, 114
Buildings and improvements 646029 519961 164,041 160,637 228,070 2121598
Improvements other than buildings 38,524 163970 217,800 191 ,913 256,324 208,883
Machinery and equipment 20,437 199917 16,373 163093 369810 36,010
Total capital assets $ 448,385 $ 226,841 $ 463,768 $ 4400767 $ 912, 153 $ 667,608
Major capital improvements during this fiscal year included the following:
Governmental Activities
➢ Additions to the overall street system infrastructure ($9 . 6 million)
➢ Completion & Grand Opening of Fossil Creek Community Park ($9. 1 million)
➢ Completion & Grand Opening of the Second Sheet of Ice at EPIC ($ 3 .9 million)
➢ Acquistion of 878 acres of Open Space under partnership with Larimer County ($2.3million)
Proprietary Activities
➢ Sheldon Lake Storm Drainage Improvement Project ($5.0 million)
➢ Pleasant Valley Water Pipeline ($ 11 .6 million)
➢ Completion of New Clubhouse at Collindale Golf Course ($2. 1 million)
Additional information on the City' s capital assets can be found in Note III.C. on pages 65-66 of this report.
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $ 169,083 ,000 (bonds,
certificates of participation, capital leases, etc.) . Of this amount, $ 126,464,000 represents bonds secured by
specified revenue sources (i.e., revenue bonds) . in addition, there is $ 16,410,000 of general obligation water bonds,
which historically have been supported by water revenue and not property taxes. The remaining $26,209,000
represents debt primarily secured by the new facilities or equipment being financed by certificates of participation,
assignment of lease payments or capital leases.
City of Fort Collins
Outstanding Debt
as of December 31 ,
(amounts expressed in thousands)
Governmental Business-type Total
Activities Activities Primary Government
2003 2002 2003 2002 2003 2002
Revenue bonds $ 70989 $ 10,204 $ 118,475 $ 128,111 $ 126,464 $ 138,315
General obligation bonds (water) - 161410 19,255 16A10 1 %255
Certificates of participation 15, 370 16, 135 11970 21045 17,340 18, 180
Assignment of lease payments 833 862 21649 21742 31482 31604
Capital leases 49921 57019 466 556 51387 59575
Total outstanding debt $ 29rl13 $ 320220 $ 1391970 $ 152,709 $ 16%083 $ 184,929
30 City of Fort Collins
Aside from capital leases, the one new borrowing during the year was a $5 .7 million of Sales & Use Tax Revenue
Refunding Bonds. ,
While the City currently has no outstanding general obligation (G.O.) debt that isn't being serviced by enterprise
revenue, the City has obtained a comparable rating for the City's G.O. pledge in the Aal/AA category, the second
highest rating available. For a complete discussion of the City's most recent bond ratings, please see the Schedule
on page 8 of the transmittal letter.
Additional information on the City' s long-term obligations can be found in Note IILE on pages 67-74 of this report.
Economic Factors
➢ At the end of 2003, unemployment in the City of Fort Collins reached 6.7% of the labor force. This
figure is higher than the Larimer County unemployment rate of 5 .5% and the State of Colorado
unemployment rate of 5 .7%. At the national level, unemployment was at 5 .7% at year-end.
➢ Combined sales and use tax collections did not exceed the prior year collections. On the cash
collection basis, total collections were 0.74% lower than 2002 . This event marked only the second
time in the City' s history that combined collections did not reflect an increase over the prior year.
Fiscal year 2002 was the first time this occurred.
➢ The City' s building permit values were lower than the average activity over the last five years, while
the actual number of permits was the highest of the 5 year period. A total of 7,804 building permits
were issued (an increase of 6.4%) with a construction value of $292,412,644 (an increase of 4 .2%) .
➢ In recent years, the State of Colorado has been facing significant revenue shortfalls . During the fiscal
year ended June 30, 2003, revenues for the State ' s General Fund were $ 179 million lower than the
prior year (a decrease of 3 . 1 %) . For the fiscal year ending June 30, 2004, revenues are expected to
increase by 5 . 8%. The total revenues expected are still 10.8% lower than the amount received by the
State in the fiscal year ended June 30, 2001 .
➢ These and other factors were considered when the City prepared the annual appropriation for 2004.
The City Council appropriated $ 12. 1 million from reserves at the beginning of 2004 to fund the
operations of the City. The 2004 budget also anticipated excess revenue (additions to the overall
reserves) of $3 .2 million.
➢ The most significant risk to the City is the extent and timing of the recovery of the Colorado
economy. The economic recovery drives the State of Colorado budget and a significant portion of the
City of Fort Collins economy correlates to expenditures by the State. The duration and severity of the
drought that has affected the western United States will also impact the utility operations of the City
of Fort Collins.
See also the schedule of key economic indicators on page 6 of the transmittal letter.
Financial Contact
The City's financial statements are designed to provide users (citizens, taxpayers, customers, investors, and
creditors) with a general overview of the City's finances and to demonstrate the City' s accountability. Questions
concerning any of the information presented in this report or requesting additional information should be sent to the
City Financial Officer' s attention at the following address :
City Financial Officer
215 North Mason Street 2°d Floor
PO Box 580
Fort Collins, CO 80522-0580.
Comprehensive Annual Financial Report 31
THIS PAGE LEFT BLANK INTENTIONALLY.
32 City of Fort Collins
BASIC FINANCIAL STATEMENTS
Comprehensive Annual Financial Report 33
THIS PAGE LEFT BLANK INTENTIONALLY,
34 City of Fort Collins
STATEMENT OF NET ASSETS
DECEMBER 31 , 2003
Primary Government -- City of Fort Collins
Governmental Business-type Component
Activities Activities Total Unit
ASSETS
Current Assets
Cash and cash equivalents $ 621470,093 $ 33,9092700 $ 969379,793 $ 1 ,6469947
Investments 74, 1641091 65,9370863 140, 1011954 6917357
Cash held by fiscal agent 6159780 613100336 61926, 116 -
Securities lending collateral 13,494,315 - 131494, 315 -
Receivables :
Property taxes 13, 246,547 - 13 ,246, 547 3, 143 ,294
Sales and use taxes 71446,245 - 71446,245
Accounts 39376,052 149225 ,020 17,601 p072 21000
Special assessments 16,925 - 169925 -
Notes and loans 10404, 828 - 1 ,404, 828 -
Accrued interest 7059846 690, 761 11396 ,607 39272
Internal Balances ( 19240, 000) 1 ,240,000 - -
Due from other governments 1680137 168, 137 3,304
Inventories of materials and supplies 480, 103 2,9879015 3,4679118
Restricted assets:
Cash and cash equivalents 356, 254 958 , 024 1 ,314,278 -
Inventory of real property held for resale 1 ,685, 416 1 ,685, 416 1357464
Total Current Assets 1781390, 632 126 ,258 ,719 304,649, 351 5,625,638
Non-Current Assets
Net pension (obligation) asset 1 , 061t902 - 11061 ,902 -
Capital assets (non-depreciable) : 3251395,549 659313,499 390, 709,048 8017547
Capital assets ( net of accumulated
depreciation) : 122 ,989, 138 398, 455 , 462 521 ,4449600 11566, 737
Unamortized bond issuance costs 138 , 713 114933188 196310901 87, 588
Total Non-Current Assets 449,585, 302 465,262, 149 914,847,451 21455,872
Total Assets 627,975, 934 59115209868 11219,496, 802 8, 0812510
LIABILITIES
Current Liabilities
Accounts payable 4,6119245 79402,248 12 ,0139493 85 , 922
Accrued interest payable 203$ 31 6052751 809,282 23 ,464
Accrued wages payable 13547,001 6319010 2 , 178,011 3 , 956
Deferred revenue 13, 692,991 13 ,692,991 -
Obligations under securities lending 13 , 494,315 - 13,494,315 -
Non-current liabilities
Due within one year:
Accrued compensated absences 21700,831 191369811 31837,642 49208
Bonds payable 119270952 80493 , 957 10,421 , 909 1 , 153 ,660
Claims payable 31113,410 - 31113,410 -
Capital lease obligations 1 ,373, 284 221 ,654 1 ,594, 938 -
Due in more than one year:
Accrued compensated absences 548, 621 819979 630,600 222
Bonds payable 220189 , 910 128,5081755 150,69%665 31239,990
Claims payable 51703, 278 - 5 ,703,278 -
Capital lease obligations 3,5479637 244,212 31791 ,849 -
Total Liabilities 742654, 006 147,326,377 221 ,980,383 41511 ,422
NET ASSETS
Invested in capital assets, net of related debt 4199281 , 086 327,7939571 747,074,657 4809653
Restricted for:
Debt service 9169911 9589024 1 ,874,935 774,011
Capital projects 34,917, 876 6, 158, 675 41 ,076,551 11807,909
Other purposes 6,757 , 896 - 6 ,757,896 -
Unrestricted 911448, 159 109,284,221 200,7321380 507,515
Total Net Assets $ 553,3211928 $ 4441194,491 $ 997,5161419 $ 31570 ,088
The notes to the financial statements are an integral part of this statement.
Comprehensive Annual Financial Report 35
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31 , 2003
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions Total
FUNCTIONS/ PROGRAM ACTIVITIES :
Primary Government:
Governmental Activities :
General government $ 22,4420513 $ 31657,911 $ 234,694 $ 85,000 $ 31977, 605
Public safety - police & judicial 22,479,641 31198,006 9679913 20,452 41186, 371
Public safety - fire service under IGA 121682 ,604 275, 117 - - 275, 117
Cultural , library & recreational services 249777, 075 91433,306 5390182 414490547 140422 , 035
Community planning & environmental services 111428,220 31109,977 2,702,720 483,088 61295, 785
Transportation 35,261 , 512 11 , 7886095 11271 ,494 11 , 176,861 2472361450
Interest on long-term debt 172361604 - -
Total Governmental Activities 130,308, 169 31 ,462 ,412 50716,003 16,2141948 53$ 93,363
Business-type Activities :
Light & Power 71 ,006,790 711019,850 67,457 3 /8859838 74,973 , 145
Water 20o2357356 23,6141722 115, 000 61368,708 30,0981430
Wastewater 137581527 12,9931746 - 214301112 15, 423 ,858
Storm Drainage 6,826,042 11 ,962, 505 11 ,475 11 , 973 ,980
Golf 2,348 ,717 21206, 936 21206 ,936
Total Business-type Activities 114, 175 ,432 121 ,797, 759 182,457 12,696, 133 134, 676 ,349
Total Primary Government $ 244, 483,601 $ 153 ,260, 171 $ 59898,460 $ 28,911 ,081 $ 188, 069,712
Component Unit:
Downtown Development Authority $ 11767,201 $ 31384 $ 24, 300 $ $ 27,684
General Revenues
Taxes:
Sales & use taxes
General purpose
Voter approved specific purpose
Lodging tax
Occupational privilege taxes
Property taxes
Franchise taxes
Transportation taxes
Other taxes
Fees:
Franchise fees
Payments in lieu of services
Investment earnings
Sale of land & equipment
Insurance recovery
Other miscellaneous
Transfers
Total General Revenues
Changes in Net Assets
Net Assets--January 1 as Restated
Net Assets--December 31
The notes to the financial statements are an integral part of this statement.
36 City of Fort Collins
Net (Expense) Revenue and Changes in Net Assets
Primary Government -- City of Fort Collins
Governmental Business-type Component
Activities Activities Total Unit
$ (18,464r908) $ - $ ( 180464r908) $
(18,293,270) - ( 182293,270) -
(12,407,487) ( 12,407,487)
( 10,355,040) - ( 10,355,040)
(51132,435) - (5, 132 ,435)
(11 ,025,062) - ( 11 ,025,062)
(11236,604) - 1 ,236,604)
(76,914,806) (76,914,806) -
31966,355 30966,355 -
99863,074 %8631074 11665,331 10665,331
501473938 5, 147,938 -
( 1419781 ) ( 141 ,781 )
20,5000917 20,500,917
(760914,806) 20,500,917 (56,413,889)
( 1 ,739,517)
52,325,736 52,325,736
16,050, 134 16,0501134
5810636 5817636
635,000 635, 000
13,902,709 13r9021709 3, 121 ,431
412,640 - 412,640
49478,029 - 414781029 -
7731439 773,439 -
1 r0231887 11023,887
71803,439 - 778031439
21819,956 30041 , 127 57861 ,083 74,224
1211496 (3%033) 82,463 -
80,247 72,768 153,015 -
310, 103 129,825 439,928 -
(9451903) 945,903 -
100,3720548 4, 1509590 104,5231138 3, 1959655
23,4571742 24,651 ,507 48, 10%249 1 ,456, 138
529,864, 186 4191542,984 949,407, 170 21113,950
553,321 ,928 444,194,491 3,5
997,516,419 70,088
Comprehensive Annual Financial Report 37
GOVERNMENTAL FUNDS
BALANCE SHEET
DECEMBER 31 , 2003
Primary Government
Trans- Total
Sales and portation Capital Other Total
General Use Tax Services Projects Governmental Governmental
ASSETS
Cash and cash equivalents $12,371 ,700 $ 21437,467 $139935036 $ 16,672,762 $ 23,448,454 $ 56,923,419
Investments 25,364,807 11062,559 21764,843 18,9091817 14,275,429 62,367,455
Cash held by fiscal agent - 615,780 615,780
Securities lending collateral 13,494,315 139494,315
Receivables
Property taxes 13,064,545 - 182,002 1302460547
Sales and use taxes - 70446,245 70446,245
Accounts 8419023 899,394 506,909 1 , 112,686 303600012
Special assessments 868 - 16,057 16,925
Notes and loans 125,000 - 1 /2799828 19404,828
Accrued interest 211 ,356 15,269 10,994 209,807 133,333 580,759
Due from other governments 13,341 152,326 2,470 168, 137
Inventory of real property held for resale 116559979 29,437 1 ,685, 416
Total Assets $67, 142,934 $10,961 ,540 $5,810,593 $ 36,915,075 $ 40L47%696 $ 161. 3099838
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable, accruals, and other $ 1 ,614, 105 $ 2,070 $ 3099257 $ 1 ,945,397 $ 571 ,344 $ 40442, 173
Accrued wages payable 927,701 191 ,536 51 ,802 283,640 11454,679
Deferred revenue 13,0700105 6170248 139687,353
Loans payable 1 ,240,000 1 ,240,000
Obligations under securities lending 13,494,315 13,494,315
Total Liabilities 30p346?226 2070, 500,793 1. ,997, 199 11472,232 34,318,520
Fund Balances
Reserved for:
Encumbrances 71689,214 192859137 61802, 167 1 ,671 ,650 17,448, 168
Long-term notes receivable 125,000 11275,328 19400,328
Inventory of real property: held for resale 1 /6559979 - - 29,437 11685,416
Debt service - 198, 191 29,605 6893115 916,911
Emergency reserve 31380,274 31380,274
Revenues in excess of state constitutional limit 21392,729 293920729
Contractual and other 11714, 149 592, 191 2,3061340
Unreserved, designated for:
Capital projects 41784, 155 954,214 11064,724 28, 115,709 34,918,802
Non-Major Special Revenue Funds - capital projects 29,6593926 297659,926
Sales and use tax accrual - 7/4469245 70446,245
Equipment replacement 261 ,411 261 ,411
Non-Major Special Revenue Recreation Fund -
equipment replacement 996,757 996,757
Unreserved, reported in:
General Fund 14,793,797 - 14,793,797
Sales and Use Tax Fund 2,36%820 21360,820
Transportation Services Fund 2,9309334 - 2,930,334
Non-Major Special Revenue Funds 4,093,060 4,093,060
Total Fund Balances 369796,708 101959,470 59309,800 34,917,876 390007,464 126,991 ,318
Total Liabilities and Fund Balances $67, 142,934 $ 10,961 ,540 $5,810,593 $ 36,915,075 $ 40,479,696 $ 161 ,309,838
The notes to the financial statements are an integral part of this statement.
38 City of Fort Collins
RECONCILIATION OF THE BALANCE SHEET OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS
FOR THE YEAR ENDED DECEMBER 31 , 2003
Amounts reported for governmental activities in the statement of net assets (page 37) are
different because:
Total fund balances - governmental funds (page 40) $ 126,9919318
Capital assets net of accumulated depreciation used in governmental activities are
not current financial resources. Therefore they are not reported in the funds.
Primary governmental capital assets 5001406,453
Less accumulated depreciation (57,913, 578)
City joint venture equity interest in capital assets of Fort Collins/Loveland
Airport (net of depreciation) 30759 ,834 446,252,709
City's joint venture equity interest in non-capital assets of Fort Collins/Loveland Airport 105,014
Other long-term assets/ (obligations) resulting from actuarial calculations and related
to the payment of benefits outside of the current period are not included in the funds. 11061 ,902
Other assets in governmental activities are not financial resources and therefore
not reported in the governmental fund
Bond costs 153,805
Less current year amortization ( 15,092) 138,713
Long-term liabilities, including bonds payable, the related unamortized issuance
costs and accrued interest payable, are not due and payable in the current period
and therefore are not reported in the funds.
Governmental bonds payable (71989,464)
Governmental certificates of participation (15,370,000)
Governmental assignment of lease payments (833,059)
Discountl(premium) & deferral amount 82,949
Current year amortization (81288)
Compensated absences (30137,604)
Governmental capital leases payable (407326024)
Accrued interest since last debt service payment (2021473) (32 , 189,963)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. Except for the utility customer service and
administrative fund , the assets and liabilities of the internal service funds are
included in the governmental activities in the statement of net assets . 10,962,235
Net assets of governmental activities (page 37) $ 553,321 ,928
The notes to the financial statements are an integral part of this statement.
Comprehensive Annual Financial Report 39
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31 , 2003
Primary Government
Trans- Total
Sales and portation Capital Other Total
General Use Tax Services Projects Governmental Governmental
REVENUES
Taxes $ 14,731 ,565 $ 68,3757870 $ 1 ,451 ,544 $ - $ 211 ,723 $ 84,770 ,702
Licenses and permits 10764,018 - - 91 ,314 - 11855,332
Intergovernmental 1 ,329, 554 - 51055,471 11365,714 91794, 160 17,544 ,899
Fees and charges for services 11 ,9687278 21253,450 18,579 16, 154,678 30,394,985
Fines and forfeitures 10844r921 - - - - 11844,921
Earnings on investments 111291878 143,575 55, 191 909, 174 8336841 31071 ,659
Net increase (decrease) in the
fair value of investments (3220907) (46, 167) 25,313 (2700267) (166,471 ) (780,499)
Securities lending income 183,250 - - - 183,250
Miscellaneous revenue 2,7071505 213840154 43800r939 529,689 21440,551 12, 862,838
Total Revenues 351336, 062 70,857,432 13,6417908 2,6440203 2912689482 151 ,748,087
EXPENDITURES
Current operating
Executive, legislative, and judicial 5,402,331 - - - - 51402, 331
Administrative 71477r404 - - - 71477,404
Cultural , library, and recreation 11 , 167, 179 - - 11 , 255,943 22,423 , 122
Communications & technology 3,6426143 - - - - 31642, 143
Community planning and environmental 4/9611304 - - - - 4,9611304
Police protection 24,0811499 - - - - 24,0811499
Transportation - 151979,719 - 8,6219901 24r6011620
Emergency recovery - - - - 601 ,940 6010940
Other 1 ,721 , 559 11012, 375 - - 3,098,665 5, 832,599
Securities lending
Interest 147, 123 - - - 147, 123
Agent fees 14,451 - - 14,451
Intergovernmental
Fire protection 12,682,604 - - - 121682,604
Capital outlay - - 30,71 %438 10,425,271 419144,709
Debt service
Principal - - - 2,854, 188 2,854, 188
Interest - - - 1 ,5151432 115151432
Total Expenditures 719297,597 1 ,012,375 159979,719 30,719,438 38,373,340 157,382,469
Excess of Revenues Over
(Under) Expenditures (35,961 , 535) 69, 6459057 (2,337, 811 ) (28,075,235) (9, 1041858) (5,634,382)
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of general
long-term debt 19239,957 - 550298 - 51842,930 7, 138, 185
Transfers in 592822,299 - 3/3510217 28,2401722 151779, 143 107, 193,381
Transfers out (20, 3459795) (72,912,718) (556, 178) (827,885) (12,4359079) (107,0771655)
Payments to refunded bond escrow agent - - - - (6,965,000) (6,965,000)
Total Other Financing Sources (Uses) 40,7161461 (72,9121718) 21850,337 27,412,837 27221 ,994 288,911
Net Change in Fund Balances 4 ,754,926 (3r067,661 ) 5120526 (662,398) (67882,864) (5,345,471 )
Fund Balances-January 1 as Restated 32,0411782 141027, 131 40797,274 35,5800274 45,890,328 132,3361789
Fund Balances-December 31 $ 361796,708 $ 10, 959,470 $ 51309,800 $ 341917,876 $ 39,007,464 $ 126,991 ,318
The notes to the financial statements are an integral part of this statement.
40 City of Fort Collins
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31 , 2003
Amounts reported for governmental activities in the statement of activities (pages 38-39 ) are
different because:
Net change in fund balances - total governmental funds (page 40) $ (513459471 )
Governmental funds report capital outlays as expenditures . However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense . This is the amount by which
capital outlays exceeded depreciation in the current period .
Expenditures for capital assets 37, 175 ,070
Less current year depreciation (77513 ,078 )
Less current year dispositions , net accumulated depreciation 266 ,452) 29 , 395 , 540
Repayment of bond and lease principal is reported as an expenditure in the
governmental funds . However, the repayment reduces long-term liabilities on
the statement of net assets , so this transaction has no effect on net assets .
Repayment of bond and lease principal 19774 , 188
Repayment of capital lease principal 11270 , 576
Payment to escrow agent on bond refunding 61965 , 000 10,009 , 764
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the governmental funds.
The issuance of long-term debt (e.g . , bonds , leases) provides current financial
resources to the governmental funds. However, issuing debt increases long-term
liabilities on the statement of net assets , so this transaction has no effect on net
assets . Also , governmental funds report the effect of issuance costs, premiums ,
discounts , and similar items as expenditures in the period when the debt is created .
However, these amounts are deferred and amortized in the statement of activities.
Issuance of capital leases ( 1 ,295,255)
Issuance of sales & use tax refunding bonds (5 , 730,000)
Cost of issuance, premium & deferred amount on refunding 230r659 (61794 ,596 )
Some expenses reported in the statement of activities do not require the use of
current financial resources and , therefore , are not reported as expenditures in the
govemmental funds .
Change in net pension asset/(obligation ) (71257)
Current year amortization of bond cost ( 15, 092)
Current year amortization of premium/(discount) & deferred amount (81288)
Change in accrued interest related to last debt service payments 28 ,844
Increase in compensated absences _ (4 , 723 ) (61516)
Expenses in Statement of Activities related to City's Equity in Joint Venture
Change in Non -Capital Equity position in Fort Collins/Loveland Airport (77351 )
Internal service funds are used by management to charge the costs of certain
activities to individual funds . Except for the utility customer service and
administrative fund , the net revenue of the internal service funds is reported with
the governmental activities . (317939628)
Change in net assets of governmental activities (pages 36-37) $ 23,457 ,742
The notes to the financial statements are an integral part of this statement.
Comprehensive Annual Financial Report 41
GENERALFUND
STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES --
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Original Final Positive
REVENUES Actual Budget Budget (Negative)
Taxes $ 14 , 731 ,565 $ 14,653,892 $ 14 , 551 , 109 $ 180,456
Licenses and permits 1 ,764 ,018 1 , 716 ,790 1 ,589 , 145 174 ,873
Intergovernmental 11329 ,554 1 ,760,546 21538,200 (12208 ,646 )
Fees and charges for services 11 ,968 ,278 11 ,805, 112 11 ,690,278 278 ,000
Fines and forfeitures 1 ,844,921 1 ,377 ,500 11652,000 192 ,921
Earnings on investments 1 , 129,878 4413015 8000000 3297878
Net decrease in the fair value of investments (322 , 907) - - (322, 907)
Securities lending income 183 ,250 - - 183 ,250
Miscellaneous revenue 21707,505 908 ,848 3 ,8011381 ( 11093,876)
Total Revenues 35 , 336 ,062 32,663 ,703 36 ,622 , 113 ( 192860051 )
EXPENDITURES
Current operating
Executive , legislative , and judicial 51402 ,331 61025,281 6 ,044 ,960 6427629
Administrative 79477,404 91005, 107 91191 ,275 11713 , 871
Cultural , library, and recreation 112167, 179 11 ,946,626 12 ,033 ,702 866 ,523
Communications technology 32642 , 143 31983 ,731 41170,994 528,851
Community planning and environmental 41961 ,304 71557 ,877 10,434 ,247 5,472 ,943
Police protection 24,081 ,499 23 ,970,940 29, 158 ,624 5,077, 125
Other 11721 /559 413569381 79880 ,811 611599252
Securities lending
Interest 147 , 123 - - ( 147, 123)
Agent fees 14 ,451 - - ( 14 ,451 )
Intergovernmental
Fire protection 121682 ,604 12 ,682 ,604 12 ,682,604 -
Total Expenditures 71 ,297 ,597 79,528,547 91 ,5972217 20 ,2991620
Excess of Revenues Over (Under)
Expenditures (35,961 ,535) (46 , 8643844) (54,975, 104) 191013 ,569
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of general
long-term debt 1 ,239 ,957 - 1123%957 -
Transfers in 59,8221299 63, 149,229 60,501 ,337 (679,038)
Transfers out (201345 ,795) (241713 ,784) (26 ,4539161 ) 6 , 1071366
Total Other Financing Sources 40 ,716 ,461 389435 ,445 35,288, 133 51428,328
Excess of Revenues and Other Sources
Over (Under) Expenditures and Other Uses 4 , 7541926 $ (8 ,429 ,399) $ ( 1916861971 ) $ 24,441 ,897
Fund Balances-January 1 as Restated 329041 , 782
Fund Balances-December 31 $ 36 ,796 ,708
The notes to the financial statements are an integral part of this statement.
42 City of Fort Collins
SALES AND USE TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Original Final Positive
REVENUES Actual Budget Budget (Negative)
Taxes $ 68,375, 870 $ 72 ,3521994 $ 69,5050745 $ ( 1 , 129, 875)
Earnings on investments 1431575 4572911 145,428 ( 11853)
Net decrease in the fair value of investments (46, 167) - - (46, 167)
Miscellaneous revenue 213849154 21540,892 213789555 59599
Total Revenues 70t857v432 759351 ,797 72, 029,728 ( 1 , 172,296)
EXPENDITURES
Current operating
Other 1 ,012,375 - 1 , 100,000 87,625
Total Expenditures 11012, 375 - 11100, 000 879625
Excess of Revenues
Over (Under) Expenditures 69, 8450057 757351 ,797 70,9293728 1 , 084, 671
OTHER FINANCING SOURCES (USES)
Transfers out
Transportation Services Fund (3099857) (3093857) (309,857) -
Debt Service Fund (3,666,528) (21641 , 821 ) (3,666,528)
Capital Projects Fund ( 17,029,907) (173000,231 ) ( 19,3151021 ) 23285, 114
General Fund (519906,426) (5515859543) (52 ,321 ,344) 414,918
Total Other Financing
Sources (Uses) (72,912,718) (75,537,452) (75,612, 750) 21700, 032
Excess of Revenues and Other Sources
Over (Under) Expenditures and Other Uses (31067, 661 ) $ ( 185, 655) $ (43683,022) $ 11615,361
Fund Balances--January 1 1490270131
Fund Balances--December 31 $ 10,959,470
The notes to the financial statements are an integral part of this statement.
Comprehensive Annual Financial Report 43
TRANSPORTATION SERVICES FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON=GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Positive
(Negative)
Adjustment Actual Variance With
To Budgetary On Budgetary Original Final Actual On
Actual Basis Basis Budget Budget Budgetary Basis
REVENUES
Taxes $ 1 ,451 ,544 $ $ 1 ,451 ,544 $ 1 ,592,000 $ 1 ,472,257 $ (20,713)
Intergovernmental 5,0551471 958,235 6,013,706 79298,946 6,985,919 (9729213)
Fees and charges for services 2,253,450 21253,450 2,2929647 2,169,432 84,018
Earnings on investments 558191 55,191 96,000 50,000 5, 191
Net increase in the fair value of investments 25,313 25,313 25,313
Miscellaneous revenue 41800,939 46,124 41847PO63 41591 ,774 617703505 1 923 442
Total Revenues 13,6419908 _ 11004,359 14,646,267 15,871 ,367 17,448,113 2 801 ,846
EXPENDITURES
Programs (fund level of budgetary control)
Transportation services administration 114,945 114,945 611 ,325 23886,325 29771 ,380
Administrative support 1 ,600,579 1 ,6001579 16985,991 2,0850991 485,412
Health and safety 380, 192 3802192 362,543 362,543 (170649)
Snow removal 886,663 886,663 759,710 759,710 ( 126,953)
Street patching 646,570 646,570 926,838 826,838 1803268
Sweeping 584,919 584,919 642,480 642,480 57,561
Unpaved roads and alleys 176,078 176,078 2449447 244,447 683369
Work for others 4,237,038 412370038 4,354,027 41354,027 116,989
Administrative support service 354,391 354,331 574,428 547,928 193,597
Engineering management and design 319,427 3191427 314,942 314,942 (41485)
Technical services 122,632 122,632 124,876 124,875 2,244
Construction inspection 574,865 574,865 587,347 623,277 489412
Surveying 269,219 269,219 319,239 3199239 50,020
Development review 394,254 394,254 3953208 395,208 954
Technology and equipment 183,727 1833727 2339699 290, 199 106,472
Signal maintenance 6353498 635,498 616, 114 641 ,714 61216
Signs and pavement markings 676,749 676,749 743,827 743,827 67,078
System design and monitoring 175,826 175,826 1759963 175,963 137
Traffic engineering 543,666 543,666 650,440 6249840 81 , 174
Traffic construction 7759606 775,606 6509000 750,000 (251606)
Neighborhood safety 189 189 (189)
Parking 1 ,3389592 1 ,338,592 21003,821 2,097,821 7590229
Planning 9741779 974,779 1 ,561 ,779 114851179 510,400
Total Programs 15,966,344 15,9660344 189839,044 21 ,2971374 5*331 ,030
Federal Grants (grant level of budgetary control)
West Elizabeth Bikelane 526 96 624 307,000 307,000 306,376
South College Bikelanes - 285,000 285,000
College/Lake Medians 186,000 1860000
Marketing--local 12,849 1 ,EM37 11241 ,386 1 ,688,061 1 ,688,061 446,675
Total Grants 13,375 1 ,228,635 1 ,242,010 11995,061 2,4669061 1 ,224,051
Total Expenditures 15,979,719 1 ,228,635 171208,354 20,8341105 23,763,435 6,555,081
Excess of Revenues Over
(Under) Expenditures - (213371811 ) (224,276) (21562,087) (419623738) (6,315,322) 31753,235
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of long-term debt 550298 55,298 55,298 -
Transfers in
Sales and Use Tax Fund 309,857 309,857 309,857 309,B57
General Fund 31041 ,360 257, 130 3,298,490 313760327 31373,798 (75,308)
Transit Services Fund - 40,807 40,807 41 ,278 40,807
Transfers out
Debt Service Fund (3540573) (3541573) (354,573) (354,573)
Capital Projects Fund 201 605 (201 ,605) ( 1 , 166,848) (1 , 166,848) 965,243
Total Other Financing Sources (Uses) 21850.337 2979937 3, 148,274 2,206,041 21258,339 889,935
Excess of Revenues and Other Sources Over
(Under) Expenditures and Other Financing Uses 512,526 $ 73,661 586, 187 $ (2,756,697� $ (4,056,983) $ 4,6431170
Fund Balances--January 1 437970274 4,797,274
Less Prior Years' Grant Revenues (1 ,302,296)
Plus Prior Years' Grant Expenditures 1 ,228,635
Fund Balances--December 31 $ 3 j U0
The notes to the financial statements are an integral part of this statement.
44 City of Fort Collins
THIS PAGE LEFT BLANK INTENTIONALLY.
Comprehensive Annual Financial Report 45
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
DECEMBER 31 , 2003
Light Storm
and Power Water Wastewater Drainage
ASSETS
Current Assets
Cash and cash equivalents $ 915770246 $ 127379,963 $ 6 ,690, 181 $ 29634 ,021
Investments 20 ,911 ,247 2371819735 12 ,4823554 9 ,362 , 327
Cash held by fiscal agent - - 151 ,661 6, 1581675
Receivables
Accounts 81885,613 21334 ,804 11489 ,258 1 ,508 ,042
Note receivable from other fund 6200000
Accrued interest 197, 623 212 , 368 268 ,876 11 ,894
Inventories of materials and supplies 29987,015 - - -
Restricted assets :
Revenue bond current debt service account - 2989774 289, 276 369,974
Total Current Assets 42 ,558 , 744 38 ,407 ,644 219991 , 806 20, 044 ,933
Non-Current Assets
Property and water rights 10518 , 940 35 ,8350001 960, 199 59219,482
Buildings , improvements and equipment 1650941 , 977 205 ,795,718 139 ,831 , 093 74 ,6341051
Accumulated depreciation (78,944 , 196 ) ( 61 ,482,686 ) (45 ,042 , 206) ( 10, 341 ,467)
Construction in progress 41438,066 717979055 6,999 ,015 -
Note receivable from other fund - - 620 ,000 -
Unamortized bond issuance costs 367,539 554 ,896 512 ,728
Total Non -Current Assets 92r9549787 188 ,3127627 103,922 ,997 70 ,024 ,794
Total Assets 135 , 513 ,531 226,7207271 125,9141803 90 ,0697727
LIABILITIES
Current Liabilities
Accounts payable 51308 , 767 11203 , 066 248 ,490 516 , 406
Accrued interest payable - 168, 323 163 , 855 183 , 309
Accrued wages payable 164 , 529 125 , 899 1100191 48 , 255
Accrued compensated absences 246 , 762 304 , 154 193,657 65 , 133
Bonds payable - 47896 , 590 1 , 220,099 2 ,2011216
Claims payable - - - -
Capital lease obligations 73, 877 - -
Total Current Liabilities 59720 ,058 61771 , 909 11936 ,292 31014 , 319
Non-Current Liabilities
Accrued compensated absences 12 ,987 16, 008 10 , 192 31428
Bonds payable 48,2939862 29, 938 ,257 4578429503
Claims payable - - -
Capital lease obligations - - -
Total Non-Current Liabilities 121987 48,309, 870 29, 948 ,449 459845, 931
Total Liabilities 51733 ,045 65 ,081 , 779 31 , 884 ,741 48,860 , 250
NET ASSETS
Invested in Capital Assets, net of related debt 92 / 954 / 787 135,048,298 72 , 1447641 21 ,981 ,075
Restricted: Debt service - 298, 774 289,276 369,974
Restricted : Capital projects - - 51902 ,414
Unrestricted 36, 825 ,699 36,291 ,420 219596, 145 12 ,956 ,014
Total Net Assets $ 129 , 7809486 $ 171 ,638,492 $ 94 ,030,062 $ 41 ,2093477
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
Net assets of business-type activities (page 35) .
The notes to the financial statements are an integral part of this statement.
46 City of Fort Collins
Other Total Total
Enterprise Enterprise Internal
Fund- Golf Funds Service Funds
$ 676,213 $ 319957,624 $ 71749, 990
650937,863 11 , 796,636
6,310, 336
11328 14,219, 045 22 , 015
620 , 000 -
690, 761 125, 087
21987,015 480 , 103
958, 024 -
6775541 123,6800668 20, 1733831
21519, 721 46 , 053,343 5,393, 995
91011 ,301 595,214, 140
(21233,292) ( 198,043, 847) (2,529, 506)
269020 19, 260, 156 552,658
6209000
58, 025 1 ,4939188
99381 ,775 464, 596 ,980 32417, 147
10,059,316 588,277, 648 230590 , 978
20, 728 79297,457 273, 863
90,264 6059751 1 ,058
20, 940 469,814 259, 156
419880 851 ,586 386, 122
176,052 81493*957 -
- 39113,410
1479777 221 ,654 108, 700
497,641 1799409219 41142, 309
61000 489615 44,315
41434, 133 128,508, 755 -
5, 703,278
244, 212 244,212 80, 197
416849345 128,801 ,582 598272790
5, 1819986 146,7419801 9,970, 099
41289,337 3262418, 138 3, 228 ,250
958, 024 -
5, 902 ,414
587,993 108,257t271 10,392,629
$ 41877, 330 441 ,535,847 $ 13, 620 , 879
21658 ,644
$ 444 , 194,491
Comprehensive Annual Financial Report 47
PROPRIETARY FUNDS
STATEMENT OF REVENUES , EXPENSES
AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED DECEMBER 31 , 2003
Light Storm
and Power Water Wastewater Drainage
OPERATING REVENUES
Charges for services $ 69, 234 ,638 $ - $ - $ -
Charges for services pledged for debt service 221307 , 739 12 , 221 , 993 1111971803
Total Operating Revenues 691234 ,638 22 , 3079739 12, 221 ,993 11 , 197 , 803
OPERATING EXPENSES
Personal services 39455,074 4 ,350 , 621 41015 ,500 939 , 727
Contractual services 759,887 31085 ,480 11297 ,264 334 ,595
Commodities 49 ,2571889 941 , 356 666 ,296 43 , 129
Customer service and administrative charges 51213 ,640 27359,878 11438 ,443 967, 073
Other 51342 ,593 271949825 1 ,349 ,953 2899679
Depreciation 71063,593 41996,089 21564 , 767 1 , 9159677
Total Operating Expenses 71 ,092,676 17, 9289249 11 ,332 ,223 41489, 880
Operating Income (Loss) (11858,038 ) 4 ,3790490 889 ,770 6, 707 ,923
NONOPERATING REVENUES (EXPENSES)
Earnings on investments 891 , 904 960,218 1 ,054 ,584 936, 111
Net decrease in the fair value of
investments (297 ,726) (244 ,015) (220, 723 ) (76 , 070)
Other revenue 11940 ,212 5981670 746 , 568 111720
Gain (loss) on sale of capital assets (58 ,719) 61172 19 , 855 -
Interest expense - (213010472 ) (21359 , 274 ) (213030749 )
Other nonoperating expenses - (46 , 751 ) (96 , 131 ) (52 , 103 )
Total Nonoperating Revenues (Expenses) 27475 ,671 (11027 , 178 ) (855 , 121 ) ( 1 ,484 ,091 )
Income (Loss) Before Contributions and Transfers 6171633 393529312 34 ,649 51223,832
Capital contributions 31885,838 71232, 060 21455,459 764,455
Transfers in 195,500 - 830 ,830 104,020
Transfers out - (69,000) (69 ,000 ) (57,500)
4 ,0811338 71163 ,060 3 ,217,289 810 ,975
Change in Net Assets 41698 ,971 10 ,515 ,372 31251 ,938 61034,807
Net Assets--January 1 as Restated 125,081 ,515 161 , 1230120 90 ,778 , 124 35 , 174,670
Net Assets--December 31 $ 129 ,780,486 $ 1719638 ,492 $ 94 ,030,062 $ 4112092477
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds .
Change in net assets of business-type activities (page 37)
The notes to the financial statements are an integral part of this statement.
48 City of Fort Collins
Other Total Total
Enterprise Enterprise Internal
Fund- Golf Funds Service Funds
$ - $ 69,234, 638 $ 32,076,053
292060937 47, 934,472
21206, 937 117, 169, 110 321076,053
1 t043 , 009 13,803,931 10,053,394
506,965 5,9849191 21 ,399,369
202,861 51 , 1111531 39017,548
- 91979,034 -
70,614 %247,664 234r962
261 , 170 16, 801 ,296 451 , 810
2,0841619 106,927,647 351157,083
122,318 10, 2410463 33081 ,030
10,032 31852,849 531 , 179
(838,534) ( 156,464)
68, 509 31365,679 1912253
(32,692) -
(261 ,673) (712261168) ( 12,413)
(41344) 199,329 -
( 187,476) ( 19078, 195) 553,555
(65J 58) 9116%268 (29527,475)
14,3371812 -
16,773 1 / 147/ 123
(51720) (201 *220) ( 11061 ,629)
11 ,053 15 ,2831715 ( 1 ,061 , 629)
(54, 105) 241446 ,983 (30589, 104)
4, 931 ,435 1702090983
$ 41877, 330 $ 13,620,879
204, 524
$ 24,6519507
Comprehensive Annual Financial Report 49
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31 , 2003
Light Storm
and Power Water Wastewater Drainage
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers and users $ 69148%456 $ 22,2191368 $ 12,234,982 $ 101996,410
Cash paid to employees for services (39420,286) (4,336,098) (4,002,926) (929, 117)
Cash paid to other suppliers of goods & services (60,9921678) (81433,981 ) (4,911 ,342) ( 11922,947)
Other receipts 11940,212 5981670 746,568 11 ,720
Net cash provided (used) by operating activities 71010,704 1010471959 490670282 . 81156,066
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (69,000) (69,000) (57,500)
Transfers from other funds 195,500 830,830 1042020
Net cash provided (used) by noncapital
financing activities 195,500 (69,000) _ 761 ,830 469520
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from capital debt
Capital contributions 31885,838 6,610,075 2,455,459 764,455
Purchases of capital assets (269,317) (1 ,320,991 ) (589,097) ( 161 ,457)
Acquisition and construction of capital assets (9,7491633) (16,338,014) (21523,438) (81738, 193)
Principal paid on capital debt (0411759) (51447,004) (2, 1711034)
Interest paid on capital debt (2,244,893) (211270630) (21286,212)
Proceeds from sales of capital assets 46 059 61172 192855
Net cash (used) by capital
and related financing activities (61087,053) ( 18,229,410) (82111855) (12,592,441 )
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sales and maturities of
investments 101090,608 191060,630 75484,269 31017,026
Purchase of investments ( 12,4860942) ( 14, 128,607) (61059,200) (81561 ,591 )
Earnings received on investments 891 ,904 1105%995 11084, 118 930,554
Net cash provided (used) by
investing activities (1 ,504,430) 51992,018 21509,187 (4 061 4101 1 )
Net (decrease) in cash and cash equivalents (385,279) (21258,433) (8739556) (9,003,866)
Cash and cash equivalents, January 1
(including $ 114,789 and $ 15,334, 193, for the
wastewater and stormwater funds, respectively,
reported in cash with fiscal agent and $298,578,
$2,907,666 and $471 ,900 for the water, wastewater
and stormwater funds, respectively, reported in the
restricted assets of cash & cash equivalents) 91962,525 14,937, 170 8,004r674 18, 166,536
Cash and cash equivalents, December 31
(including $ 151 ,661 and $6, 158,675, for the
wastewater and stormwater funds, respectively,
reported in cash with fiscal agent and $298,774,
$289,276 and $369,974 for the water, wastewater
and stormwater funds, respectively, reported in the
restricted assets of cash & cash equivalents) $ 915771246 $ 12,678,737 $ 74131 ,118 _$ 911622670
Reconciliation of operating income to
net cash provided (used) by operating activites:
Operating income (loss) $ ( 1 ,858,038) $ 4,379,490 $ 889,770 $ 61707,923
Other receipts 1 ,940,212 598,670 746,568 110720
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation expense 7,063,593 41996,089 21564,767 1 ,915,677
(Increase) decrease in accounts receivable 2489818 (88,371 ) 121989 (201 ,393)
(Increase) decrease in inventories (49,504)
Increase (decrease) in accounts payable (36% 165) 147,558 (159,386) (288,471 )
Increase (decrease) in accrued _
compensated absences payable 12,635 (308) 5, 179 41520
Increase in accrued wages 22, 153 149831 71395 61090
Increase in claims payable
Net cash provided (used) by operating activities $ 7LO10L7 04. $$ 10,047,959 _ $ 4,067,282 $ 81156,066
Noncash investing, capital, and financing activities:
(Decrease) in fair value of investments ( 161 , 134) (95, 115) ( 135, 1192) (76,070)
Borrowing under capital lease
Capital contributions 621 ,985
Note receivable from other fund for sale of land 1 ,240,000
The notes to the financial statements are an integral part of this statement.
50 City of Fort Collins
Other Total Total
Enterprise Enterprise Internal
Fund- Golf Funds Service Funds
$ 2,2071778 $ 117, 141 ,994 $ 320101 ,019
( Is048,775) ( 13,737,202) ( 10,0230184)
(11153, 123) (77,414,071 ) (23,6101717)
68 509 31365,679 _ 197, 133
74 389 29,356,400 ( 1 ,335,749)
(5,720) (2010220) ( 11061 ,629)
16,773 19147, 123
11 ,053 945,903� ( 12061 ,629)
165,708 165,708
13,715,827
(304,264) (21645, 126) (534,806)
( 170,680) (37,519,958) (311 ,331 )
(344,938) (12,9049735) (122,823)
(265,039) (60923,774) ( 13, 113)
720086 230,000
(919,213) (46,03%972) (752,073)
39,652,533 715180314
(41 ,236,340) (93448,295)
101032 3,9769603 560,224
10,032 2t392,796 (113690757)
(8232739) (13,344,873) (4,51 %208)
19499,952 52,5700857 12,2691198
$ 676,213 $ 39`225,984 $ 70749,990
$ 122,318 $ 10,241 ,463 $ (3,0861910)
68,509 39365,679 197, 133
2610170 1668019296 4511810
841 (27, 116) 24,966
- (4%504) 58,524
(372,683) ( 1 ,042, 147) (34, 160)
(8,358) 13,668 (10, 189)
2,592 53,061 40,399
- 11022s78
$ 74,389 $ 29,3 66,400 _$ (11335,749)
(4672511 ) ( 1563464)
165,708 165,708
- 621 ,985
11240,000
Comprehensive Annual Financial Report 51
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
DECEMBER 31 , 2003
Pension Trust Agency
Funds Funds
ASSETS
Cash and cash equivalents $ 10, 305, 832 $ 31514 , 883
Receivables
Interest 79,953 5,632
Notes and loans 1 /5159145 -
Total Receivables 11595 , 098 51632
Investments , at fair value
U S Government securities 31413 ,697 11012 ,486
Corporate bonds 11825,453 509, 120
Mutual funds 89 ,057,717
Total Investments , at fair value 94 ,2961867 1 ,521 ,606
Total Assets 106 , 197 ,797 51042 , 121
LIABILITIES
Amounts held for other governments - 57042, 121
Accrued expenses 1 ,075 -
Total Liabilities 11075 $ 5,042, 121
NET ASSETS
Held in trust for pension benefits 106 , 196 ,722
Total Plan Net Assets $ 106, 196 ,722
The notes to the financial statements are an integral part of this statement.
52 City of Fort Collins
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FOR THE YEAR ENDED DECEMBER 31 , 2003
Pension
Trust Funds
ADDITIONS
Contributions
Employer contributions $ 4 ,701 ,735
Employee contributions 21324 ,369
Pension conversion & roll-overs 390 ,853
Total Contributions 71416 ,957
Investment income
Interest 340 , 852
Interest related to employee loans 335, 943
Net change in fair value of investments 17 ,378 , 377
Total Investment Income 18 ,055 , 172
Total Additions 259472 , 129
DEDUCTIONS
Benefit payments 571469118
Administration expense 311 ,869
Total Deductions 51457,987
Net Increase in Plan Assets 209014 , 142
Net Assets
Beginning of Year 86 , 182 , 580
End of Year $ 106 , 196 , 722
The notes to the financial statements are an integral part of this statement.
Comprehensive Annual Financial Report 53
THIS PAGE LEFT BLANK INTENTIONALLY,
54 City of Fort Collins
NOTES TO THE FINANCIAL STATEMENTS
Comprehensive Annual Financial Report 55
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING Block 31 Joint Venture was created by the City and Larimer
POLICIES County for the purpose of acquiring and managing parking
space and government facilities on Block 31 . The City issued
The City of Fort Collins, Colorado (the City) was incorporated in sales and use tax bonds to finance the acquisition of the
1873 and adopted its Home Rule charter in 1913. In 1954, the property and is responsible for the debt service on the bonds.
citizens adopted the Cou nci I-Manager form of government. The Larimer County reimburses the City for its half of the debt
more significant accounting policies reflected in the financial service on a semi-annual basis. The City is responsible for
statements are summarized as follows: providing half of the on-going upkeep and maintenance of the
property. The City and the County each retain a 50%
A. Reporting Entity ownership interest in the property. Separate financial
statements are not issued for this joint venture .
These financial statements include those of the City (primary
government) and organizations for which the City is financially Fort Collins-Loveland Airoort was created for the purpose of
accountable (component units). Together, these organizations operating a municipal airport for the benefit of the citizens of
comprise the City's reporting entity. The following component Loveland and Fort Collins. The City provides a small amount of
units are included in the reporting entity: City of Fort Collins funding for on-going airport construction projects. The Cityand
Downtown Development Authority (DDA), City of Fort Collins Loveland each retain a 50% ownership interest in the airport.
General Improvement District No. 1 (GID No . 1 ), and the Fort Separately issued financial statements are available upon
Collins Capital Leasing Corporation. During the fall of 2003, request from the Airport Manager.
the North Front Range Transportation and Air Quality Planning
Council (NFRTAQPC) secured adequate funding to sustain its North Front Rancie Transportation and Air uali Planning
operations independent of the City of Fort Collins . Therefore, Council (NFRTAQPC) is an association of local governments
NFRTAQPC no longer met the criteria of a component unit of that was formed in 1987 in response to local needs and federal
the City. transportation and air quality planning requirements . Local
government membership consists of elected officials
The DDA was created in 1981 by City Council and the representing Fort Collins, Greeley, Loveland, Evans, Berthoud ,
electorate. The purpose of the DDA is to promote the public Windsor, Timnath, Garden City, LaSalle , Johnstown , and Weld
health , safety, prosperity, security, and welfare of its and Larimer Counties. Membership is also extended to the
inhabitants. The City appoints and removes all members of the Colorado Transportation Commission and the Colorado Air
DDA's governing board in addition to issuing debt, adopting Quality Control Commission . The NFRTAQPC Board appoints
budgets, and levying taxes on its behalf. The financial its own management and approves its own budget. Prior to
statements of the Downtown Development Authority are 2003 , NFRTAQPC was reported as a blended component unit
included in the reporting entity by discrete presentation . of the City. The City has an agreement with the NFRTAQPC
Discrete presentation entails reporting component unit financial that allows for NFRTAQPC to participate in the Cites medical
data in a column separate from the financial data of the City. and dental plans on a reimbursable basis. Separately issued
financial statements are available upon request from the
GID No. 1 was created in 1976 for the construction and Planning Council_
installation of parking facilities and street and sidewalk
beautification improvements . GID No. 1 is, in substance, the Harmony Library was created for the purpose of operating a
same as the primary government since the City Council serves joint library for the benefit of the citizens of Fort Collins and the
as the board of directors. As such , it levies all taxes , approves students, faculty and staff of Front Range Community College.
all budgets , and issues all debt on behalf of GID No . 1 . The City and the College paid 40% and 60% of construction
Accordingly, its transactions and balances are blended with costs, respectively. However, the City is responsible for 60 % of
those of the City. GID No. 1 is presented as a special revenue the ongoing maintenance and operational costs . Although the
fund. College retains sole interest in the building , which is located on
their campus, the City is responsible for the personal property
Fort Collins Capital Leasing Corporation (Corporation ) was within the library. Separate financial statements are not issued
created in June 1998 and operates under the provisions of the for this joint venture.
Nonprofit Corporation Law of the State of Colorado. The
Corporation's primary purpose is to provide financing Poudre Fire Authority (PFA) was created by an
assistance by obtaining land, property and equipment on behalf intergovernmental agreement between the City of Fort Collins
of the City. The directors are appointed by the City Council and and the Poudre Valley Fire Protection District. The PFA Board
receive no compensation. Its transactions and balances are consists of five members—two appointed by City Council, two
blended with those of the City. The Corporation is presented as appointed by the District's Board of Directors and a fifth
a debt service fund . member appointed by the other four members. The PFA Board
appoints its own management and approves its own budget.
None of the component units included in the reporting entity PFA's continuing existence depends , in part, on funding
issues its own financial statements. provided by the City. Separately issued financial statements for
PFA are available from its administrative office .
B. Joint Ventures
Platte River Power Authority (PRPA) was created by an
Ajoint venture is a legal entity or other organization that results intergovernmental agreement between the Cities of Fort
from a contractual agreement and that is owned , operated or Collins, Estes Park, Loveland, and Longmont to supply their
governed by two or more participants as a separate and wholesale electric power and energy requirements . The
specific activity subject to joint control in which the participants governing Board of PRPA consists of two members from each
retain an on-going financial interest or an on-going financial municipality. Under Colorado law, PRPA's Board of Directors
responsibility. The City has joined with other governmental has the exclusive authority to establish electric rates. The City
units to form the following joint ventures: has contracted for its total electric energy supply from PRPA
through December 31 , 2040. Separately issued financial
56 City of Fort Collins
statements for PRPA are available from its corporate levied and become an enforceable lien on the property. Grants
headquarters. and similar items are recognized as revenue as soon as all
eligibility requirements have been met. An allowance for
Aside from the Fort Collins-Loveland Airport, the City does not doubtful accounts is maintained for the utility receivables.
have an equity interest in any of the joint ventures in which it
participates. None of the joint ventures are accumulating Governmental fund financial statements are reported using the
financial resources or are experiencing fiscal stress that are current financial resources measurement focus and the
expected to create a significant financial benefit or burden on modified accrual basis of accounting , Revenues are
the City in the foreseeable future . recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are
C. Jointly Governed Organization collectible within the current period or soon enough thereafterto
pay liabilities of the current period . For this purpose, the
The City and various governmental entities throughout Larimer government considers revenues to be available if they are
County have jointly agreed to establish the Larimer Emergency collected within 60 days of the end of the current fiscal period .
Telephone Authority (LETA). LETA is a separate legal entity As under accrual accounting , expenditures are generally
established to provide E-911 telephone service to the citizens recorded when a liability is incurred . However, debt service
of Larimer County. The City does not retain an on-going expenditures, as well as those related to compensated
financial interest or responsibility in LETA. absences and incurred claims and judgments, are recorded
only when payment is due. With regard to self-insurance
D. Related Organizations claims and judgments, an additional expenditure may be
recorded based on actuarial information.
The City has an agreement with the Fort Collins Housing
Authority (FCHA) that allows for FCHA to participate in the Property taxes, special assessments , sales taxes, franchise
City's medical and dental plans on a reimbursable basis . taxes, charges for services, amounts due from other
FCHA is a separate legal entity with its own board that operates governments and interest associated with the current fiscal
independent of the City. Separately issued financial statements period are all considered to be susceptible to accrual. Other
are available from FCHA. revenue items such as licenses, fines and permits are
considered to be measurable and available only when the cash
E. Government-wide and Fund Financial Statements is received by the government, as a result they are not
susceptible to accrual.
The government-wide financial statements (i .e. , the statement
of net assets and the statement of activities) report information G. Financial Statement Presentation
on all of the nonfiduciary activities of the primary government
and its component units . For the most part, the effect of The accounts of the City are organized and operated on the
interfund activity has been removed from these statements. basis of funds, each of which is considered a separate
Governmental activities , which are normally supported by taxes accounting entity. The operations of each fund are accounted
and intergovernmental revenues , are reported separatelyfrom for with a separate set of self-balancing accounts that comprise
business-type activities, which rely primarily on fees and its assets, liabilities, fund equity, revenues and expenditures or
charges for support. Also , the primary government is reported expenses as appropriate. The various funds are summarized
separately from the DDA , a legally separate component unit for by type within the financial statements.
which the primary government is financially accountable .
Governmental Accounting Standards Board Statement No. 34
The statement of activities demonstrates the degree to which has established a minimum criteria (percentage of the assets,
the direct expenses of a given function or segment are offset by liabilities, revenues or expenditures/ expenses of either fund
program revenues. Direct expenses are those that are clearly category or the governmental and enterprise combined ) for
associated with a specific function or segment. Program determining major funds. The non-major funds are combined in
revenues include 1 ) charges to customers or applicants who a column in the fund financial statements.
purchase, use or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) The City reports the following major governmental funds :
grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or The General fund is the government's primary operating
segment. Taxes and other items not properly included among fund . It accounts for all financial resources of the general
program revenues are reported instead as general revenues. government, except those required to be accounted for in
another fund.
Separate financial statements are provided for governmental
funds, proprietary funds, and fiduciary funds , even though the The Sales & Use Tax special revenue fund is used to
latter are excluded from the government-wide financial account for collections of the City's 3.0% sales and use tax
statements. Major individual governmental funds and major which is used to provide reserves and fund payments for
individual enterprise funds are reported as separate columns in sales and use tax revenue debt and is transferred to other
the fund financial statements. funds of the City in accordance with the sales and use tax
distribution policy.
F. Measurement Focus and Basis of Accounting
The Transportation Services special revenue fund is used
The govemment-wide financial statements are reported using to account for taxes, federal and state grants and other
the economic resources measurement focus and the accrual revenues utilized to operate and maintain the City's
basis of accounting , as are the proprietary fund and fiduciary transportation system.
fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred , The Capital Projects fund is used to account for financial
regardless of the timing of related cash flows. Property taxes resources to be used for the acquisition or construction of
are recognized as revenues in the year for which they are major capital facilities . Revenues and other financing
Comprehensive Annual Financial Report 57
sources are derived primarily from issuance of debt or Exceptions to this rule are the charges between the City's utility
transfers from other funds. functions and various other functions. Elimination of these
charges would distort the direct costs and program revenues
The City reports the following major proprietary funds: reported for the various functions concerned.
The Light and Power fund is used to account for the Amounts reported as program revenues include 1 ) charges to
operations of the Citys electric utility. customers for goods, services, or privileges provided, 2)
operating grants and contributions, 3) capital grants and
The Water fund is used to account for the operation of the contributions, including special assessments. Internally
City's water utility. dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include
The Wastewater fund is used to account for the operation all taxes.
of the City's wastewater utility.
Proprietary funds distinguish operating revenues and expenses
The Storm Drainage fund is used to account for the from nonoperating items. Operating revenues and expenses
operations of the Citys storm water utility. generally result from providing services and producing and
delivering goods in connection with a proprietary fund's
Governmental and enterprise fund types that do not meet the principal ongoing operations. The water and sewer funds also
criteria of major funds have been summarized and presented recognize as operating revenue the portion of connection fees
as other governmental funds and other enterprise funds , intended to recover the cost of connecting new customers to
respectively within the fund financial statements . the system . Operating expenses for enterprise and internal
service funds include the cost of sales and services,
Additionally, the City reports the following fund types: administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported
Internal Service funds are used to account for the City's as nonoperating revenues and expenses.
fleet maintenance services, phone & information/
technology equipment and services, self-insurance of When both restricted and unrestricted resources are available
employee health care and other employee benefits , and a for use , it is the government's policy to use restricted resources
risk management insurance program . These services are first, then unrestricted resources as they are needed .
provided by certain departments of the City to other
departments, usually on a cost reimbursement basis. H. Budgetary Data
There is also an internal service fund to account for the
customer and administrative services provided exclusively Budgetary Accounting and Control
to the Citys utility enterprise funds .
Appropriated budgets are established for all funds of the City
Fiduciary Fund Types except agency funds, which do not measure results of
operations .
Pension Trust funds are used to account for the Citys
defined benefit and defined contribution pension trusts to General. Special Revenue, Debt Service and Trust Funds
provide retirement benefits for its employees/retirees .
Budgets for general , special revenue, debt service and trust
Agency funds are used to accountfor cash and investments funds are adopted on a basis which is consistent with generally
held by the City on behalf of Poudre Fire Authority, Poudre accepted accounting principles (GAAP) except that
Fire Authority's pension fund and the Fort Collins-Loveland appropriations for certain special revenue funds do not lapse on
Airport. an annual basis as further explained below.
Non-Current Governmental Assets/Liabilities Capital Projects Fund
Although GASB Statement #34 eliminates the presentation The Capital Projects Fund budget is not consistent with GAAP
of Account Groups, it does provide for the maintenance of because appropriations do not lapse at year end.
the underlying records. The non-current governmental
assets/liabilities are presented within the governmental Proprietary Funds
column in the government-wide Statement of Net Assets.
Proprietary funds are budgeted on a basis that includes capital
All Governmental Accounting Standards Board (GASBs) items such as amounts for capital outlay and principal reduction
pronouncements as well as all Financial Accounting Standards of debt. Such budgets exclude depreciation . Propriety Funds
Board (FASBs) Statements and interpretations, Accounting recognize gain on inter-fund sales of capital assets for
Principles Board (APB) Opinions, and Accounting Research budgetary purposes only. Capital project budgets for certain
Bulletins (ARBs) of the Committee on Accounting Procedure enterprise funds are nonlapsing .
issued on or before November 30 , 1989 generally are followed
in both the government-wide and proprietary fund financial Legal Level of Control
statements, unless those pronouncements conflict with or
contradict GASB pronouncements. Governments have the The legal level of budgetary control is at the individual fund
option of following private-sector guidance for their business- level , except for capital projects and federal and state grants for
type activities and enterprise funds, subject to the same which the legal level of control is at the project or grant level .
limitation . The City has elected not to follow subsequent For budgetary purposes, operating transfers are considered
private-sector guidance . expenditures.
As a general rule, the effect of interfund activity has been
eliminated from the government-wide financial statements.
58 City of Fort Collins
Lapsing Appropriations f. Transfer any unexpended appropriated amount or
portion thereof from one fund to another, upon
All appropriations unexpended or unencumbered lapse at the recommendation of the City Manager, provided that the
end of the year to the applicable fund , except capital project purpose for the initial expenditure no longer exists.
and federal and state grant appropriations which lapse when
the projector grant activity is completed. Appropriations which 8. The City Manager may transfer any unused budgeted
are encumbered at year end are carried over to the ensuing amount or portion thereof from one budget category to any
year at which time they are matched with their corresponding other category within the same fund or project depending
expenditures . on the legal level of budgetary control .
Budgets for the Capital Projects Fund, special revenue funds Numerous ordinances making supplemental appropriations to
with expenditures of a capital or project nature and special the original adopted budget were enacted during 2003 .
revenue funds where the primary source of revenue is project-
length federal or state grants are nonlapsing . Included are the Property Taxes
Capital Projects Fund , Capital Expansion Fund , Parkland Fund,
Conservation Trust Fund, Community Development Block Grant Property taxes levied in a particular year are collected in the
Fund , Home Investment Partnership Grant Fund , Transit subsequent year. The property tax calendar is as follows:
Services Fund , Flood Recovery Fund, and the grant portion of
Transportation Services . Budgets for capital projects of the Tax Year
Water, Storm Drainage, Wastewater, and Golf enterprise funds
are also nonlapsing . Beginning of fiscal year for taxes . . ... . . . . .... . ...... ........ .. January 1
Assessed valuation certified by
Budgetary Procedures County Assessor . .... .. . . . .... . .. .... . . . ....... .... ........ .... . .... . August 25
Property tax levy by City Council
The following is a summary of the procedures used in for ensuing year. . . ... . . .. ........... .. . ....0..0.... . ........ 1.... November 30
establishing budgetary data reflected in the financial Tax levy certified to
statements: County Commissioners .. . ...... .... ... . . . .... . ........... . .. December 15
County Commissioners certify levy
1 . Council work sessions are held throughout the budget to County Assessor ... ... ....... . . .. .... . . .... ....... . ... . . . .. . December 22
process to provide direction for the development of the
budget. Ensuing
Collection
2 . In March of each year, departments develop projections of Year
their revenue sources. information about providing the
costs of services is also collected . Taxes attach as an enforceable
lien on property; . . ...... . .... .. . . ..o... ........ .o.o....... .............. January 1
3. In April and May, departmental budgets are prepared. County Assessor delivers tax
Budget issues are reviewed in June and July. warrant to County Treasurer . . .. ... . .. .... . ....... .... . .... . .. January 10
First installment due date
4. On or before the first Monday in September, the City (one-half of taxes due) . .... .. . . . ... . . ..... .. . ..... ............ . February 28
Manager submits to the City Council a proposed budgetfor Taxes due in full (unless
the next year. installments elected by taxpayer) .. . ... .... . .... ... .... .......... April 30
Second installment due date
5 . Public hearings are conducted to obtain taxpayer (second half due). . ... . . . .0 . . .. . . June 15
comments.
Taxes are collected by the Larimer County Treasurer on behalf
6. Prior to November 30, the City Council adopts the budget of the City and are remitted by the 10th day of the month
and passes the appropriation ordinance . following collection. A 2% collection fee is retained by the
7. After commencement of the fiscal year, the appropriation County as compensation for collecting the taxes .
ordinance is irrepealable. However, the City Council may, Anheuser Busch contributed 5 % of total property taxes
by ordinance, make the following changes: collected in 2003. This company is also a major customer of
the City's water and wastewater funds. In 2003, the company's
a. Provide payment of any expenditure, the necessity of usage of these utilities represented over 10% of the total
which is caused by any casualty, accident or operating revenues collected by these funds .
unforeseen emergency;
Reserve for Encumbrances
b. Appropriate any expenditure from reserves or fund
equity accumulated in prior years; Encumbrance accounting is utilized by the City to record
purchase orders, contracts and other commitments for the
c. Appropriate proceeds of bonded indebtedness; expenditure of monies to assure effective budgetary control and
accountability. Encumbrances outstanding at year end
d . Appropriate revenues which were not anticipated at the represent the estimated amount of expenditures likely to result
time of adoption of the annual budget and which are a if orders for goods and services are completed . In
result of rate or fee increases or new revenues; governmental funds, encumbrances outstanding at year end
are reported as reservations of fund balances since they do not
e . Appropriate at the expiration of eight months of the represent expenditures or liabilities. Encumbrances are not
fiscal year the excess of actual revenues over the recorded in the financial statements for proprietary fund types
budgeted estimates ; or pension trust funds .
Comprehensive Annual Financial Report 59
I. Assets, Liabilities and Fund Equity
Inventory of Real Property Held for Resale
Cash and Investments
Inventory of real property held for resale generally reflects the
The City has stated certain investments at fair value in cost of raw land held by the City's Land Bank Program in the
accordance with GASB No. 31 . Fair value is determined General Fund , for development of affordable housing.
utilizing the third party custodian's statements, Wall Street Additionally, there is a minor balance representing raw land
Journal, Bloomberg , and other recognized pricing services. held for purchase by residents with the Cemeteries Special
Revenue Fund. These assets are carried at cost until an event
Whenever possible, cash is pooled from the various City funds occurs to indicate a low net realizable value.
to enhance investment capabilities and maximize investment
income . Investments are made taking into consideration cash Capital Assets
flow needs, market conditions, and contingency plans. The
City's investment policies prescribe eligible investments, Capital assets , which are acquired or constructed , are reported
investment diversification, and maturity and liquidity guidance, at historical cost or estimated historical cost in the applicable
which are utilized in managing the investment portfolio. governmental or business-type activities' columns in the
government-wide financial statements. Capital assets are
For purposes of the combined statement of cash flows, the City defined by the City as assets with an initial, individual cost of
considers highly liquid investments with a maturity of three more than $5,000 and an estimated useful life in excess of four
months or less when purchased to be cash equivalents. years. Donated capital assets are recorded at estimated fair
market value at the date of donation .
The City invests in derivatives and similar securities .
Derivatives are generally defined as contracts , whose value The costs of normal maintenance and repairs that do not add to
depends on , or derives from , the value of an underlying asset, the value of the assets or materially extend asset lives are not
reference rate, or index. The City holds bonds with floating capitalized . Capital assets other than land , water rights and
interest rates, which are considered derivatives, and similar some intangible property are depreciated. Depreciation is
mortgage-backed securities . computed using the straight-line method with estimated useful
lives as follows:
Cash held by Fiscal Agent
Certain proceeds of Capital Leasing Corporation's Certificates - Buildings . ... . ... . ...... .... ... .... ... . ... . . .. .. . . ... . ... . . .... . .... . ...25-50 years
of Participation (COP) , and Enterprise Fund revenue bonds are - Improvements other than buildings .. . .... . .... ..... . .. . 15-25 years
classified as cash held by fiscal agent on the balance sheet - Machinery and equipment..... ....... ........... ............ ... 5.15 years
because they are held in third party escrow accounts and their
use is limited by applicable COP and bond covenants . GASB Statement No. 34 provides for an extended period of
deferral (Fiscal Year 2006), before infrastructure assets are
Restricted Cash and Cash Equivalents required to be included in the City's accounting records . This
category of assets (e.g., roads, bridges , traffic signals,
Certain proceeds of Enterprise Fund revenue bonds, as well as sidewalks and similar items) is likely to be the largest class of
certain resources set aside for their repayment, are classified assets in the City. Historically, infrastructure assets have not
as restricted assets on the balance sheet since their use is been reflected within the City's records nor has consumption of
limited by applicable bond covenants. these assets been measured . Aside from traffic signals, all
infrastructure assets have inception to date balances reflected
Receivables on the financial statements .
Accounts receivable are expressed net of allowances for GASB Statement #34 provides for an alternative approach to
doubtful accounts. Allowances for doubtful accounts are based depreciation for measuring the value of infrastructure assets
on historical collection trends for the related receivables. For and the related costs incurred to maintain their service life at a
the enterprise funds, estimated unbilled revenues are accrued locally established minimum standard . In order to adopt this
as of year end and included with accounts receivable to reflect alternative method, the City has developed an asset
services rendered but not billed . management system , which will determine if the minimum
standards are being maintained . This measurement would
Long-term portions of receivables in the governmental fund occur every three years at a minimum . The City has elected to
financial statements are reported and then offset by fund use this alternative method for reporting its street infrastructure
balance reserve accounts in order to indicate that they are not capital assets. As of January 1 , 2003, the City recorded its
available, spendable resources except for long-term portions of street system infrastructure inception to date records.
special assessments receivable which are offset by deferred
revenue. Compensated Absences
Inventories The City allows employees to accumulate unused vacation pay
and to defer overtime pay by accumulating compensatory leave
Inventories are stated at cost using the first-in, first-out method. up to maximum limits. Unused sick pay is not recognized as a
The costs of inventory items are recognized as expenditures in liability because it does not meet the criteria for accrual . The
governmental funds when purchased and as expenses in liability associated with these benefits is reported in the
proprietary funds when used . Where appropriate, inventory has government-wide financial statements. Proprietary fund types
been adjusted downward to market value to reflect what is accrue such benefits in the period in which they are earned .
considered a permanent market decline .
60 City of Fort Collins
Long-Term Obligations Deferred Revenues
In the government-wide financial statements and proprietary Governmental funds report deferred revenue on their balance
fund types in the fund financial statements, long-term debt and sheets. Deferred revenues arise in governmental funds when a
other long-term obligations are reported as liabilities in the potential revenue does not meet both the "measurable" and
applicable governmental activities , business-type activities, or "available" criteria for recognition in the current period. Deferred
proprietary fund type statement of net assets. Bond premiums revenues also arise when resources are received by the City
and discounts, as well as issuance costs, are deferred and before it has a legal claim to them. In subsequent periods,
amortized over the life of the bonds using the effective interest when both revenue recognition criteria are met, or when the
method . Bonds payable are reported net of the applicable bond government has a legal daim to the resources, revenue is
premium or discount. Bond issuance costs are reported as recognized .
deferred charges and amortized over the term of the related
bond . In the government-wide financial statements, deferred revenue
not meeting the "measurable" and "available' has been
In the fund financial statements , governmental fund types eliminated. Since the majority of the deferred balance on the
recognize bond premiums and discounts as well as bond government-wide Statement of Net Assets represents revenue
issuance costs during the current period. The face amount of received for property tax levies legally recorded in the current
debt issued is reported as other financing sources. Premiums year, but not billed until the subsequent fiscal period; this
received on debt issuances are reported as other financing deferred amount appears on both the government-wideand the
sources while discounts on debt issuances are reported as fund financial statements. Another significant portion of this
other financing uses. Issuance costs, whether or not withheld balance represents revenue received for future performances
from the actual debt proceeds received, are reported as debt at the Lincoln Center.
service expenditures.
Estimates
Claims and Judgments Payable
The preparation of financial statements requires management
Claims and judgments payable are recognized when it is to make estimates and assumptions that effect certain reported
probable that a liability has been incurred and the amount of the amounts and disclosures. Specifically, the City has made
loss can be reasonably estimated . Such claims, including an certain estimates and assumptions relating to its collections of
estimate for claims incurred but not reported at year end , are receivables, the valuation of property held for resale, and the
reflected as claims payable in the financial statements . ultimate outcome of claims and judgments. Accordingly, actual
results could differ from those estimates .
Fund Eguity
Discretely Presented Component Units
In the fund financial statements, fund equity of the City's
governmental funds are classified either as reserved or The significant accounting policies for the City's discretely
unreserved . The unreserved portion may be further classified presented component units are substantially the same as for
as either designated or undesignated . Designated fund the primary government. Additional disclosures follow.
balances represent amounts identified by management for the
future use of current resources. All transactions and balances of the various fund types and
account groups of the discretely presented component units are
Reserved fund balances indicate that portion of fund equity aggregated in a single column on the face of the government-
which has been segregated for future use and is not an wide financial statements. These columns are presented
available, spendable resource or amounts which are legally separately from the financial data of the primary government
required to be segregated in accordance with legal and (the City) in order to distinguish between data of the primary
contractual provisions . government and that of the component units.
Interfund Transactions The discretely presented component unit data presented in the
government-wide statements includes total data for all fund
Interfund transactions are treated and classified as revenues , types of the Downtown Development Authority (DDA), including
expenditures, or expenses (the same as if these same its General Fund, Debt Service Fund and its non-current assets
transactions involved external organizations). These include and liabilities.
payments in lieu of taxes and billings from one fund to another
for purchased goods or services . In the govemment-wide Since the DOA is the only discretely presented component unit
statement of activities , transactions, which constitute included in the reporting entity, the significance relative to total
reimbursements , are eliminated in the reimbursed fund and discretely presented component units and the primary
accounted for as expenditures or expenses in the fund to which government is self-evident in the financial statements . Where
the transaction is applicable . appropriate, additional disclosures have been included to give
the reader additional understanding of the significance of
During the year, transactions occur between individual funds for various finance-related matters.
goods provided or services rendered. Related receivables and
payables are classified as "due from/to other funds" on the Budgeting
accompanying fund financial statements. The non-current
portion of long-term interfund loans receivable are reported as The Board of Directors of the ODA approves their respective
"advances from/to other funds" and for governmental fund budget by resolution . The budget is then submitted to City
types, are equally offset by a fund balance reserve to indicate Council for approval. Budgetary matters with respect to basis
that the receivable does not represent available, expendable of accounting and legal level of budgetary control are generally
financial resources . the same for the DDA as those of the City.
Comprehensive Annual Financial Report 61
NOTE II, STEWARDSHIP , COMPLIANCE, AND pledging financial institution's trust department or agent in the
ACCOUNTABILITY City's name.
A. Compliance with Finance Related Legal and Component Unit
Contractual Provisions
The Downtown Development Authority's undivided share of the
City's deposits as of December 31 , 2003 , was a carrying
The City has no material violations of finance related legal and amount of ($232,053) and a bank balance of $37,487. The
contractual provisions. entire bank balance was covered by federal deposit insurance.
B. Excess of Expenditures Over Appropriations In Investments
Individual Funds
Investment policies are governed by the City's own investment
Aside from the Self-Insurance Fund , the City has no excess of policies and procedures . Investments of the City and its
expenditures over appropriations at the fund level within each discretely presented component unit may include:
of the individual funds. The Self- Insurance Fund had
expenditures in excess of the final budget by the amount of Legal investments for municipalities under state statutes.
$627,685. Sufficient revenues and reserves were available to Interest-bearing accounts or certificates of deposit at banks
cover these expenditures. or savings and loans in Colorado which are eligible public
depositories.
The actual to budget comparisons for both governmental and Obligations of the United States Government, its agencies or
proprietary funds may reflect immaterial excess expenditures instrumentalities.
or expenses at the program or grant level within the fund. Common or preferred stock or debt of U.S. corporations .
- Obligations issued by or on behalf of the City.
C. Accounting Changes and Restatements - State or local government obligations having an investment
grade rating .
On January 1 , 2003, the City adopted GASB Statement No . Prime rated banker's acceptances.
40, Deposit and Investment Risk Disclosures . Prime rated commercial paper.
- Guaranteed investment contracts.
Statement No. 40 requires certain disclosures to be made in the - Repurchase and reverse repurchase agreements of any
notes to the financial statements that address common deposit marketable security described above which afford the City a
and investment risks related to credit risk, concentration of perfected security interest in such security.
credit risk, interest rate risk, and foreign currency risk. - Local government investment pools authorized under the
laws of the State of Colorado.
On January 1 , 2003, the City also restated some amounts in its Shares in any money market fund or account, unit investment
capital asset records: trust or open or close-end investment company, all of the net
assets of which are invested in securities described above.
Concurrent with the decision to utilize the modified approach to - Mutual funds that include eligible investments found above.
account for its street infrastructure capital asset system, the City - For bond reserve funds, treasury securities with a put option
decided to analyze the related activity from inception to date. used to control and minimize arbitrage rebates.
As a result of this analysis , the City had an increase of $ 184
million of capital assets used in governmental operations due to In addition to the above , investments of the General
the addition of prior year street system infrastructure. Employees' Retirement Plan may include:
The City also analyzed the activity of the Traffic Signal System , - Equipment trust certificates.
inception to date. As a result, the City had an increase of $7.3 - Real property and loans secured by first mortgages or deeds
million of capital assets. of trust.
- Participation guarantee agreements with domestically
Also, in recognition of owning a 50% share of the Fort Collins- regulated life insurance companies.
Loveland Airport, the City recorded $7. 1 million in assets. - Tax certificates issued by any county treasurer of Colorado
upon any real property located within the state.
Additionally, on January 1 , 2003, the Land Bank Program - International mutual funds that have a five star rating for the
located in the General Fund recorded prior year additions to past five years from Morningstar Mutual Funds.
Inventory Land Held for Resale of $905,886 . The General Investments of the Money Purchase Plan are determined
Fund and Benefits Fund were also reduced and increased, contractually with the third party custodian. The plan currently
respectively, by $499, 138 for a liability related to an advance. contains a wide range of money market and mutual funds.
NOTE III. DETAILED NOTES ON ALL FUNDS In accordance with GASB Statement No. 40, the City's and
its discretely presented component units investments are
A. Deposits and Investments subject to interest rate and credit risk as described below:
Deposits Interest Rate Risk
Primary Government As a means of limiting its exposure to fair value losses arising
from rising interest rates, the City's investment policy limits at
The carrying amount of the City's deposits as of December 31 , least eighty percent of the City s investment portfolio to
2003, was $2,315, 183 . The bank balances were $3,814,902 of maturities of less than five years and at least five percent of the
which $95,097 was covered by federal deposit insurance and City's operating investment portfolio to maturities of 120 days or
$3, 719,805 was collateralized with securities held by the less. Based on the current rate environment, the City assumes
that all callable securities will be called on the first call date .
62 City of Fort Collins
Credit Risk
The City's investment policy limits investments in corporate bonds to the top three ratings issued by nationally recognized statistical rating
organizations (NRSROs). As of December 31 , 2003, the City's investment in corporate bonds were rated A+ or better by Standard &
Poor's and Al or better by Moody's Investors Service . The City's investment policy also allows for the City to invest in local government
investment pools. As of December 31 , 2003, the local government investment pools (CSAFE & Colorado Diversified Trust) in which the
City had invested, were rated AAAm by Standard & Poor's.
As of December 31 , 2003, the City had the following investments and maturities:
Primary Government
Investment Maturities
Fair Up to 121 days More than
Investment Type Value 120 days to 5 years 5 years
Repurchase agreement $ 84,121 ,000 $ 84,121 ,000 $ - $
U.S. Treasuries 4,973,450 - 4,9739450
U .S. agencies 555,800 - 555,800
Instrumentality
Federal Farm Credit Bank (FFCB) 91503,995 9,503,995
Federal Home Loan Bank (FHLB) 45,7710895 13,534,878 32,237,017
Federal Home Loan Mortgage Corporation (FHLMC) 29 ,6648339 516329564 24,0311775
Federal National Mortgage Association (FNMA) 2275531626 11 ,853,726 101699,900
Student Loan Marketing Association (SLMA) 11020,000 1 ,020,000
Tennessee Valley Authority (TVA) 217653658 2,765,658
Corporate bonds 269480,008 9,782,402 161697,606
Total Investments Controlled by the City $227,409,771 $124,924,570 $ 101 ,929,401 $ 555,800
Percent of Total 55% 45% 0%
Reconciliation to Total Deposits and Investments :
Add:
Cash on Hand and in Banks $ 2,3150183
Money market funds $14,032,433
Mutual funds 89,057,717
CSAFE 12,463,937
Colorado Diversified Trust 21156,172
Securities lending short-term collateral invest, pool 13,494,315
Cash and Investments in Custody of Others 131 ,2049574
Cash Held by Fiscal Agent 61926, 116
Total Deposits and Investments $367,855,644
Component Unit
Investment Maturities
Fair Up to 121 days More than
Investment Type Value 120 days to 5 years 5 years
Repurchase agreement $ 10879,000 $ 1 ,8791000 $ $
Corporate bonds 691 ,357 691 ,357
Total Investments Controlled by the City $ 2,570,357 $ 11879,000 $ 691 ,357 $
Percent of Total 73% 27% 0%
Reconciliation to Total Deposits and Investments:
Add:
Cash on Hand and in Banks (2327053)
Total Deposits and Investments $ 20338,304
The carrying amounts of deposits and investments are reflected Fiduciary funds statement of net assets
in the accompanying financial statements as : Cash and cash equivalents $ 131820,715
Investments 95,818,473
Government-wide statement of net assets Total 109.639. 18
Cash and cash equivalents $ 96 , 3791793
Investments 140, 1010954 The City 's investments in repurchase agreements are for a
Cash held by fiscal agent 61926 , 116 period of one month or less. As a result they are sensitive to
Securities lending collateral 13,494,315 the short-term interest rate environment.
Restricted cash and cash equivalents 1 ,314,278
258,216,456 Reflected above are amounts invested in mutual funds and
local government investment pool investments. Colorado
Component-unit (cash and cash equivalents) 116461947 Diversified Trust and Colorado Surplus Asset Fund Trust
Component-unit (investments) 691 ,357 (CSAFE) are investment vehicles established for local
Total 260454, 760 government entities in Colorado to pool surplus funds for
investment purposes. Colorado Diversified Trust and CSAFE
are routinely monitored by the Colorado Division of Securities
Comprehensive Annual Financial Report 63
with regard to its operations and investments, which are also The City periodically reviews the custodian's practices to insure
subject to provisions of C.R.S . Title 24, Article 75, Section 6. fair distribution of lending opportunities as well as risk
The fair value of the investments in CSAFE and Colorado evaluation of prospective brokerldealer borrowers. For the year
Diversified Trust is the same as the value of the pool shares. 2003 the City received net income of $21 ,676 from security
None of these types of investments are categorized because lending activity for its operating and pension portfolios . The
they are not evidenced by securities that exist in physical or City has not incurred a loss through its participation in this
book entry form . program.
The City invests in various mortgage-backed securities and Restrictions on Cash and Investments
bonds with floating interest rates in order to maximize yields.
Mortgage-backed securities are based on cash flows from Cash and investments of $128,458, $ 198, 191 and $29 ,605,
interest payments on underlying mortgages . Therefore, they respectively in the General , Sales and Use Tax and
are sensitive to prepayments by mortgagees , which may result Transportation Funds and $298,774, $289,276 and $369 ,974,
from a decline in interest rates. If interest rates decline and respectively, in the Water, Wastewater and Storm Drainage
homeowners refinance mortgages, thereby prepaying the Funds are contractually restricted for debt service through bond
mortgages underlying these securities, the cash flows from ordinances.
interest payments are reduced and the value of these securities
declines . Likewise, if homeowners pay on mortgages longer B . Notes Receivable
than anticipated , the cash flows are greater and the return on
the initial investment would be higher than anticipated.
In March 1996, the City entered Into an agreement with a
The City has addressed securities lending for its operating developer for the construction of low income apartment units.
portfolio. The City has a contract with its custodian that allows Under the agreement, the City loaned $913 ,000 to the
the custodian , acting as agent, to lend securities held in the developer from the HOME Investment Partnership Grant
portfolios. Special Revenue Fund and received a deed of trust against the
property. The loan is to be repaid from 50% of the net available
The market for securities lending developed to provide cash flow generated by theproject as calculated annually. The
temporary access to a large portfolio of securities for loan bears interest at 9 /o per annum . There is no set payment
broker/dealers who might have a need to borrow specific schedule or due date on the loan . Based upon a review of
instruments. At the time of the transaction, the broker/dealer 2002 project income statements, the project did not have a net
collateralizes their borrowing (in cash or with securities) to available cash flow. In 2003, the City did receive an interest
102% of the security value plus accrued interest and in the payment of $39 ,508 against the note. Accrued interest on the
event that the fair value of the collateral falls below 100% . 1f the loan has not been recorded since it is uncertain as to the
broker/dealer fails to return the security, upon request, then the frequency of when the project will be able to make payments
custodian , acting as agent, will utilize the collateral to replace against the note.
the security borrowed . The transaction establishes a rebate
interest rate (assuming cash collateral), which is due back to In May 2000, the City entered into an agreement with a
the brokerldealer upon return of the security. The cash is then developer for the construction of low income senior apartment
invested short-term and the City and the custodian share the units. Under the agreement, the City loaned $200,000 to the
incremental return available above the rebate rate. The developer from the HOME Investment Partnership Grant
commingled short-term fixed income accounts can be invested Special Revenue Fund and received a deed of trust against the
in repurchase agreements, master notes, U. S. treasuries and property. The loan is to be repaid from the net available cash
agencies, U.S. certificates of deposit and time deposits, flow generated by the project as calculated annually. The loan
bankers' acceptances, commercial paper, and other shortterm bears interest at 7 /o per annum. There is no set payment
money market instruments . While the securities loaned are on schedule on the loan. The loan has a term of 20 years,
a rolling daily basis and the cash collateral can be deposited Accrued interest on the loan has not been recorded since it is
and/or withdrawn from the commingled investment on a daily uncertain as to the frequency of when the project will be able to
basis, the average duration of the commingled investment at make payments against the note.
December 31 was 20.5 days.
In December 2001 , the City entered into an agreement with a
The City authorizes the lending of fixed income securities, developer for the construction of low income senior apartment
except those held in reserve for the Self Insurance Fund . The units . Under the agreement, the City loaned $250,000 to the
City, as a program participant, assumes the risk that (a) the developer. 50% of the loan proceeds are from the HOME
overnight investment will not equal or exceed the rebate rate, Investment Partnership Grant Special Revenue Fund and 50%
(b) a loss of the principal in the overnight investment and (c) the of the loan proceeds are from the General Fund . The City
collateral will not be sufficient, if called upon to repurchase the received a deed of trust against the property. The loan is to be
lost security. The City would have credit risk if at any time the repaid from the net available cash flow generated bythe project
above-mentioned 102% daily adjusted collateral falls below as calculated annually. The loan bears interest at 5.5 /a per
100% . As of December 31 , 2003 , no market risk resulted from annum . There is no set payment schedule on the loan . The
the City's securities lending program since the market value of loan has a term of 20 years. Accrued interest on the loan has
the securities that the City loaned to the financial institution was not been recorded since it is uncertain as to the frequency of
$13,203,869 and the collateral received by the City was when the project will be able to make payments against the
$1394942315 . note .
64 City of Fort Collins
C. Capital Assets
A summary of changes in capital asset activity for the year ended December 31 , 2003 follows:
Restated
Balance, Deletions Balance,
Beginning and End
of Year Additions Transfers of Year
(amounts expressed in thousands)
Primary Government:
Govemmental activities
Capital assets, not being depreciated:
Land and water rights $ 55,400 $ 61948 $ (236) $ 62, 112
Street system infrastructure 235,981 91614 - 245,595
Construction in progress 26,772 169200 (259284) 17,688
Total capital assets, not being depreciated 3180153 32,762 (25,520) 325, 395
Capital assets, being depreciated :
Buildings and improvements 69,256 11 ,736 (20) 80,972
Improvements other than buildings 46, 932 141253 - 61 , 185
Machinery and equipment 42,221 41034 (11861 ) 44,394
Total capital assets being depreciated 1580409 30,023 (11881 ) 1869551
Less accumulated depreciation for:
Buildings and improvements ( 15, 197 ) (19755) 9 (167943)
Improvements other than buildings (20,273) (29388) - (22,661 )
Machinery and equipment (21 ,907) (3,655) 11605 (23,957)
Total accumulated depreciaition (57,377) (79798) 1 ,614 (63,561 )
Total capital assets being depreciated, net 101 j032 220225 (267) 122,990
Governmental activities
capital assets, net $ 419, 185 $ 54, 987 $ (259787) $ 448,385
Business-type activities
Capital assets, not being depreciated:
Land, water rights, other $ 45, 189 $ 11917 $ (11053) $ 46,053
Construction in progress 24, 624 7, 930 ( 13,053) 19,501
Total capital assets, not being depreciated 69, 813 91847 ( 14, 106) 65,554
Capital assets, being depreciated:
Buildings and improvements 215,369 90317 (19054) 223,632
Improvements other than buildings 292,750 33,069 (308) 3259511
Machinery and equipment 449863 2,949 (380) 47,432
Total capital assets being depreciated 552,982 45,335 (1 ,742) 596,575
Less accumulated depreciation for:
Buildings and improvements (55, 159) (4,432) - (59,591 )
Improvements other than buildings (99,049) (8,925) 263 (107,711 )
Machinery and equipment (27,820) (3)611 ) 372 (31 ,059)
Total accumuiated depreciation ( 1829028) (16,968) 635 (1989361 )
Total capital assets being depreciated , net 370,954 28,367 (11107) 398,214
Business-type activities
capital assets, net $ 440,767 $ 38,214 $ ( 159213) $ 463,768
Comprehensive Annual Financial Report 65
Beginning Additions Deletions End
of Year of Year
(amounts expressed in thousands)
Component Unit:
Capital Assets; not being depreciated:
Land $ 802 $ - $ $ 802
Capital assets being depreciated :
Buildings and improvements 2,237 100 - 21337
Improvements other than buildings 33 - - 33
Total capital assets being depreciated 2, 270 100 2,370
Less accumulated depreciation for:
Buildings and improvements (739) (45) (784)
Improvements other than buildings (17) (2 ) - (19)
Total accumulated depreciation (756) (47) (803)
Total capital assets being depreciated, net 1 ,514 53 11567
Component unit capital assets, net $ 20316 $ 53 $ $ 2, 369
Depreciation expense was charged to functions 1 programs of the primary government as follows:
Governmental Business-Type
Activities Activities
(amounts expressed in thousands)
General government $ 11086 $
Public safety - police & judicial 768 -
Cultural , library, & recreation services 21359
Community planning & environmental services 310 -
Transportation services 21990 -
Capital assets held by the City's internal service
funds used for governmental activities 285 -
Light & Power 71063
Water 42996
Wastewater 21565
Storm Drainage 11916
Nan-major Enterprise funds - Golf 261
Capital assets held by the City's internal service
fund used for business-type activities 167
Total depreciation expense $ 71798 $ 16 ,968
66 City of Fort Collins
D. Interfund Transfers :
Transfers In :
Trans- Capital Nonmajor Light and Waste- Storm- Non-major
General portation Projects Govern- Power Water Water Enterprise
Fund Services Fund mental Fund Fund Fund Fund Total
Transfer out:
Governmental Funds
General Fund $ $ 39041 ,360 $ 5,772 ,888 $ 101707,443 $ $ 807,331 $ $ 16,773 $ 20,3451795
Sales and Use Tax 51 ,9069426 3092857 17,029,907 30666,528 - 72,912,718
Transportation Services 201 ,605 354,573 5561178
Capital Projects - 827,885 827,885
Nonmajor Governmental 62867,293 5,223,273 216 ,994 23,499 1042020 12,4351079
Proprietary Funds
Water - 69,000 69,000
Wastewater - - 69,000 - 69,000
Storm Drainage - - 57,500 - 57,500
Nonmajor Enterprise Fund - - 51720 - 51720
Internal Service Funds 1 ,048,580 - 13,049 - 110610629
Total transfers in $ 59,822,299 $ 313513217 $ 28,240,722 $ 15,7790143 $ 195,500 $ 8300830 $ 104,020 $ 16,773 $ 108,340,504
Certificates of Participation and Assignment of Lease
E. Long-term Obligations Payments: Through the Fort Collins Leasing
Corporation, the City issues certificates of
The City utilizes various types of debt and other long-term participation (COPs) and assignments of lease
obligations in conducting its business. The following describes payments (ALPs) for the acquisition and construction
the various bonds and other types of financing used by the City of major capital facilities and improvements. The
and its component unit: debt is secured by the constructed facilities and
improvements . Debt service payments are made
General Obligation Bonds: The City issues general from the rents collected by the Leasing Corporation
obligation bonds to provide funds for the acquisition based upon lease agreements between the City and
and construction of major capital facilities. General the Leasing Corporation. As of December 31 , 2003
obligation bonds have been issued for both the City had $ 16 ,203 ,059 , and $4 ,618,9410 of
governmental and business-type activities. As of COPS/ALPs outstanding for governmental and
December 31 , 2003 , only the business-type general business-type activities, respectively.
obligation bonds for the Water fund in the amount of
$ 16 ,410,000 were outstanding . Capital Leases: The City also enters into lease
agreements as a lessee for financing the acquisition
Revenue Bonds: When issuing revenue bonds for of various machinery and equipment for both
the construction of capital assets, the City pledges govemmental and business-type activities . The
specific revenue that is generally derived from capital assets acquired from the lease agreements
operations related to the acquired/ constructed asset are included with capital assets and the amortization
to pay the debt service. The City issues revenue of leased equipment is included with depreciation in
bonds for both governmental and business-type the financial statements. These lease agreements
activities . As of December 31 , 2003 the City had qualify as capital leases for accounting purposes and
$7,989 ,464 of tax revenues bonds outstanding for therefore , have been reflected at the present value of
govemmental activities and $ 118,474,753 of revenue their future minimum lease payments as of the
bonds outstanding for business-type activities. Sales inception date. The City had $4,920,921 , and
and use tax and highway users tax revenues and $465,866 , of capital leases outstanding as of
reserves are pledged for the governmental debt. December 31 , 2003, for govemmental and business-
While the business-type debt is secured by operating type activities, respectively.
revenues of the related enterprise funds.
Comprehensive Annual Financial Report 67
The following tables display the debt service requirements for the obligations described above:
a . Summary of Principal Requirements for Debt Relating to Governmental Activities:
GOVERNMENTAL
amounts expressed In thousands
Total
Police Highway Combined Principal
Sales & Use Lease Users Lease Capital Int Service Fd Payments
Tax Revenue Purchase Tax Revenue Purchase Lease Capital Lease For Governmental
Year Bonds ALPs Bonds COPs Obligations Obligations Type Activities
2004 $ 855 $ 30 $ 255 $ 800 $ 11265 $ 109 $ 3,314
2005 875 32 260 840 993 61 31061
2006 890 33 275 870 807 19 21894
2007 910 35 239 910 554 21648
2008 935 37 245 955 310 - 28482
2009 -
2013 965 210 1 ,285 4 ,910 803 - 81173
2014 -
2018 265 6 ,085 - 61350
2019 -
2022 191 - 191
Total $ 5,430 $ 833 $ 29559 $ 15,370 $ 41732 $ 189 $ 29, 113
b. Summary of Debt Service Requirements to Maturity - Annual Principal, Interest, and Admin Fees Requirements
Police Highway Combined Total
Sales & Use Lease Users Lease Capital Int Service Fd Payments
Tax Revenue Purchase Tax Revenue Purchase Lease Capital Lease For Governmental
Year Bonds ALPS Bonds COPS Obllgations Obligations Type Activities
2004 $ 996 $ 70 $ 355 $ 1 ,561 $ 11507 $ 117 $ 41606
2005 999 70 350 1 ,564 19178 63 41224
2006 994 70 355 1 ,555 927 20 3XII
2007 995 70 354 11554 638 31611
2008 995 70 358 11556 371 31350
2009 996 70 356 11561 300 39283
2010 - 70 358 11412 300 29140
2011 70 360 11412 300 2, 142
2012 - 70 355 1 ,413 1 ,838
2013 - 70 - 10415 1 ,485
2014 - 70 10415 - - 11485
2015 - 69 10412 1 ,481
2016 - 69 11411 - 10480
2017 - 69 - 11409 1 ,478
2018 - 69 1 ,409 - 11478
2019 - 69 - 69
2020 69 - - 69
2021 69 - - 69
2022 - - -
Total _$ 51975 $ 1 ,253 $ 3,201 $ 22 ,059 $ 51521 $ 200 $ 38,209
68 City of Fort Collins
a. Summary of Principal Requirements - All Series
BUSINESS TYPE COMPONENT
amounts ex ressed in thousands UNIT
Total Total
Combined Combined 2001 Ent Fund Principal Principal Combined
General Combined Combined Storm 1999 Golf Cap. Lease Payments Pymnts For DDA
Obligation Water Sewer Drain. Golf Lease & Other For Bus. Gov. & Bus Tax
Water Revenue Revenue Revenue Lease Purchase Long-term Type Type Increment
Year Bonds Bonds Bonds Bonds COPs ALPs Pavables Activities Activities Bonds
2004 $ 2,955 $ 2,098 $ 1 ,505 $ 20248 $ 80 $ 97 $ 222 $ 91205 $ 12,519 $ 1 ,150
2005 39000 29170 21970 20325 85 101 96 10,747 13,808 1 , 868
2006 31060 21241 31722 2,405 90 107 91 11 ,716 149610 10365
2007 21395 2,327 31882 21495 95 ill 47 11 ,352 14,000 -
2008 2 ,465 2,404 4,066 2, 540 100 116 10 11 ,701 149183
2009 -
2013 2,535 139105 13,385 13, 578 580 670 430853 52, 026
2014 -
2018 13,391 11810 16, 137 760 841 - 32,939 39,289
2019 -
2022 171_ 880 6,620 180 606 8,457 81648
Total $ 16,410 $ 37,907 $ 32 ,220 $ 48,348 $ 19970 $ 2,649 $ 466 $ 139, 970 $ 169,083 $ 4 ,383
b. Summary of Debt Service Requirements to Maturity - Annual Principal , Interest, and Admin Fees Requirements
Combined Combined 2001 Ent Fund Total Total Combined
General Combined Combined Storm 1999 Golf Cap. Lease Payments Pymnts For DDA
Obligation Water Sewer Drain . Golf Lease & Other For Bus. Gov. & Bus Tax
Water Revenue Revenue Revenue Lease Purchase Long-term Type Type Increment
Year Bonds Bonds Bonds Bonds COP's Financing Pavables Activities Activities Bonds
2004 $ 33354 $ 31706 $ 3,456 $ 41442 $ 190 $ 221 $ 239 $ 15,608 $ 20,214 $ 1 ,420
2005 3,332 3 ,705 41844 43439 191 221 106 169838 21 ,062 2,080
2006 3 ,325 3 ,701 5,444 40435 191 222 96 173414 21 ,335 11443
2007 29591 3 ,711 51408 41437 191 221 49 16r608 200219 -
2008 21601 35702 5 ,387 41391 191 221 9 16, 502 19,852
2009 2, 605 3,703 51359 40241 190 221 16,319 19,602
2010 - 38711 41392 41249 189 221 129762 14,902 -
2011 3,710 21452 41245 188 222 10,817 12,959
2012 3,707 2,438 49247 187 221 10,800 12,638
2013 - 3,319 2,438 49247 190 221 - 10,415 11 ,900 -
2014 - 3, 321 596 41246 188 221 8 ,572 10,057
2015 - 31323 468 41251 190 221 81453 91934
2016 31325 471 4,256 187 221 81460 99940
2017 2,942 471 4,257 189 221 82080 91558 -
2018 20560 476 3,313 189 222 6,760 82238 -
2019 - 184 473 31314 190 222 4,383 4,452 -
2020 - 480 11715 - 222 2,417 20486
2021 19348 - 222 17570 11639 -
2022 - 977 977 977
Total $ 17,808 $ 520330 $ 45,053 $ 71 ,050 $ 3 ,031 $ 3 984 $ 499 $ 193, 755 $ 231 ,964 $ 4,943
Comprehensive Annual Financial Report B9
(Continued)
General long-term obligations of the primary government at December 31 , 2003, is comprised of the following :
Date Maturity Original Outstanding
Issued Description/Interest Rates Dates Balance Balance
Bonds Service by Transportation Services Fund through the City
Debt Service Fund
(secured by highway users tax revenues and reserves)
1998 Highway Users Tax Revenue Refunding Bonds (3.2-4.500% ) 2012 $ 3 ,399,729 $ 2/5591464
Bonds Serviced by Sales and Use Tax Fund through the City Debt
Service Fund (secured by sales and use tax revenues and reserves)
2003 Sales and Use Tax Revenue Refunding Bonds (2.0-3.25%) 2009 59730,000 5,430,000
Add unamortized premium on bonds 101 ,634
Less unamortized loss on refunding (176 ,295)
COPS I ALPs serviced by General Fund and General Improvement
District No. 1 Fund through the Fort Collins Capital Leasing
Corporation Debt Service Fund
1998 Lease Certificates of Participation (3.75-5. 125%) 2018 17,2101000 149640,000
1999 Lease Certificates of Participation (5.60%) 2009 10105,000 7300000
2001 Assignment of Lease Payments - Police (4. 70% ) 2021 890 ,000 833,059
Other Obligations of Governmental Funds
N/A Capital lease obligations (secured by leased equipment) 2007 NIA 407329024
N/A Accrued compensated absences N/A N/A 31137,604
Other Obligations of Internal Service Fund used by
Governmental Activities
N/A Capital lease obligations (secured by leased equipment) 2006 N/A 188,897
NIA Accrued compensated absences NIA N/A 111 ,849
N/A Claims Payable N/A N/A 8,816,688
Total $41 , 104og24
Component unit long-term debt at December 31 , 2003, is comprised of the following obligations:
Bonds Serviced by Downtown Development Authority
Debt Service Fund
1992 Tax Increment Revenue Refunding Bonds (5.75-7.75% ) 2007 $ 11 ,380,000 $2,4652000
(secured by tax increment property taxes and contingently secured
by City sales and use taxes)
2000 Tax Increment Revenue Bonds (5.775%) 2005 608,000 6082000
(secured by tax increment property taxes)
2001 Tax Increment Revenue Refunding Bonds (4.000%) 2006 3 ,6401000 11310,000
(secured by tax increment property taxes and contingently secured
by City sales and use taxes)
Add unamortized premium on bonds N/A N/A 10, 650
Other Obligations — Component Unit
N/A Accrued compensated absences N/A NIA 4,430
Total S 4 oi48
(Continued )
70 City of Fort Collins
(Continued)
Business-type long-term obligations at December 31 , 2003, consists of the following :
Date Maturity Original Outstanding
Issued Description/Interest Rates Dates Balance Balance
Bonds, COPs, and ALPs, serviced by Enterprise Funds
Water Fund
(general obligation water bonds secured by full faith and credit of the City)
1997 Water Revenue Bond (3.80-5 .30%) 2017 $ 10, 125 ,300 $ 7 ,6799177
1998 Water Revenue Refunding and Improvement Bonds (3.00-4 .75%) 2018 311580 ,000 261135,000
1999 Water Revenue Bond (3.28-5.25%) 2019 41998,395 41092,809
2002 General Obligation Water Refunding Bonds (2 ,25-2.75%) 2009 19 ,255,000 16,4101000
Storm Drainage Fund
(secured by storm drainage revenues)
1997 Storm Drainage Revenue Refunding and Improvement Bonds 2017 9,465,000 71930,000
(3.80-5.00%)
1999 Storm Drainage Revenue Bonds (4 ,50-5.25%) 2019 19,9809000 17,205,000
2001 Storm Drainage Revenue Bond (4.50-5.25% ) 2021 99845,000 81902,500
2002 Storm Drainage Revenue Refunding Bonds (2 .25-3 .00%) 2008 21765 ,000 21415,000
2002 Storm Drainage Revenue Bonds (4.38-5. 00%) 2022 129300,000 111895,000
Golf Fund
(secured by golf revenue)
1999 Lease Certificates of Participation (5.6 %) 2019 21255,000 1 ,9709000
2001 Assignment of Lease Payments (4.70%) 2021 21830, 000 2,648,941
Wastewater Fund
(secured by sewer revenue)
1992 Sewer Revenue Bond (5.0-6.0%) 2014 24,540,580 14,040 ,267
1995 Sewer Revenue Refunding Bonds (4.4-5. 375%) 2010 13,585, 000 139040,000
2000 Sewer Revenue Bonds (4.5-5.5% ) 2020 5,665,000 5, 1401000
Less unamortized loss on refundings (20334,215)
Less unamortized discount on bonds ( 166 ,767)
Other Obligations of Enterprise Funds
N/A Capital lease obligations (secured by leased equipment) 2006 N/A 465 ,866
N/A Accrued compensated absences N/A N/A 900 ,202
Other Obligations of the Internal Service Fund used by
Business-type Activities
N/A Accrued compensated absences N/A N/A 318,589
Total $ 138 687 369
There are a number of limitations and restrictions contained in ordinances provide thatwhenever three-fourths of the securities
the various bond and note ordinances. The City is in issued for a special improvement district have been paid and
compliance with all significant limitations and restrictions. The for any reason the remaining assessments are not paid in time
City is maintaining all reserves required by ordinances and to redeem the final securities for the district, the City shall pay
agreements with other third parties. Within the governmental the securities when due by levying additional ad valorem taxes
funds , these reserves are being maintained in debt service and and shall reimburse itself bycollecting the unpaid assessments,
special revenue funds as required by ordinances or when due from the district.
agreements.
Certificates of participation issued by the Fort Collins Capital
Special assessment bonds are serviced and payable solely Leasing Corporation are payable from rents collected under a
from bond and interest accounts within the Special lease agreement between the City and the Leasing
Assessments Fund. Deposits to these accounts include Corporation .
assessments on the property owners within the special
assessment district and interest earnings . The bond
Comprehensive Annual Financial Report 71
General obligation bonds , payable from the bond and interest Defeasance of Debt
accounts in the Special Assessments Fund, and general
obligation water bonds, payable from revenues of the Water The City has defeased certain bonds in the current year and
Fund are secured by the full faith and credit of the City. prior years by placing the proceeds of new bonds in irrevocable
trusts to provide for all future debt service payments on the
Advance Refundings defeased bonds. The trust accounts' assets and the liability for
the defeased bonds are not included in the Citys financial
On April 24, 2003 the City advance refunded $7 ,400,000 of its statements. At December 31 , 2003, $6 ,495,000 of sales &
1993 Sales and Use Tax Revenue Refunding Bonds with its use tax bonds are considered defeased .
$5,730,000 Sales and Use Tax Revenue Refunding Bonds ,
Series 2003A. Bond proceeds of $5,753, 105 along with Conduit Debt Obligations
$ 1 ,912,424 from the Sales and Use Tax Fund were used to From time to time , the City has issued Industrial Development
purchase Federal Securities that were placed in an irrevocable Revenue Bonds to provide financial assistance to private-sector
trust for the purpose of generating resources for all future debt entities for the acquisition and construction of Industrial and
service payments of the refunded debt. As a result, the commercial facilities deemed to be in the public interest. The
refunded bonds were considered defeased and the liability was bonds are secured by sources external to the City and are
removed from the balance sheet of the Sales and Use Tax payable solely from payments received from outside parties.
Fund of the City. This refunding was undertaken in order to The City is not obligated in any manner for repayment of the
take advantage of favorable interest rates. bonds. Accordingly, the bonds are not reported as liabilities in
the accompanying financial statements.
The refunding provided an economic gain (the difference
between the present value of the debt service payments on the As of December 31 , 2003, there were 20 series of Industrial
refunded and refunding bonds) of $535,930 and a reduction in Development Revenue Bonds outstanding , with an estimated
debt service payments (the difference in debt service paid aggregate principal amount payable of $64.7 million.
between the refunded and refunding bonds) of $694,558. The
difference between the reacquisition price and the net carrying Operating Leases
amount of the refunded bonds has been deferred and is being
amortized as a component of interest expense using the The City leases various facilities under operating leases, which
straight-line method over the life of the new bonds. are cancelable within one year. Costs for these leases in 2003
were $245,582.
72 City of Fort Collins
Changes in Iona-term liabilities
Long-term liability activity for the year ended December 31 , 2003, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Primary Government:
Governmental Activities
Bonds, COPS, and ALPs:
Tax revenue bonds $ 101204,464 $ 5,7301000 $ (7,945,000) $ 7,989,464 $ 11110,000
Fort Collins Leasing Corporation
Certificates of participation 16, 1351000 - (765,000) 15,3701000 8000000
Assignment of lease payments 862,247 - (291188) 833,059 30,384
Total bonds, COPS and ALPS 27,2011711 517301000 (81739, 188) 24, 192,523 11940,384
Add bond premium - 112,930 (11 ,296) 101 ,634 161944
Less bond discount and
deferred loss on refundings - (195,879) 19,584 (176,295) (29,376)
Total bonds, COPs and ALPs 27,201 ,711 516471051 (81730,900) 241117,862 1 ,927,952
Other Liabilities:
Capital leases 590199065 1 ,2951255 (11393,399) 4,920,921 11373,284
Compensated absences 31249,548 21888,262 (2,888,358) 3,2491452 21700,831
Claims payable 7,794,010 141046,316 (13,023,638) 8,816,688 31113,410
Total other liabilities 16,062,623 183229,833 (17,3053395) 16,987,061 7/ 1876525
Governmental activities
long-term liabilities $ 43,264,334 $ 23,876,884 $ (26,036,295) $ 411104,923 $ 9, 115,477
Business-Type Activities
Bonds, COPS, and ALPs :
G.0. 8 revenue bonds $ 1479365,894 $ - $ (12,481 , 141 ) $ 134,884,753 $ 81805,621
Fort Collins Leasing Corporation
Certificates of participation 2,0451000 - (75,000) 1 ,970,000 80,000
Assignment of lease payments 2 ,741 ,753 - (921812) 2,6481941 96,616
152, 1521647 - (12,648,953) 139,5031694 %982,237
Add bond premium 3437881 - (283260) 315,621 28,260
Less bond discount and
deferred loss on refundings (31333, 143) - 5169540 (21816,603) (516, 540)
Total bonds, CON and ALPs 149, 163,385 - (12, 1601673) 1371002,712 8,4931957
Other Liabilities:
Capital leases 555,941 165,708 (255,783) 465,866 221 ,654
Compensated absences 1 ,205,818 1 ,392,605 (19379,633) 11218,790 1 , 1361811
Total other liabilities 1 ,761 ,759 1 /558/313 (1 ,6351416) 19684,656 10358,465
Business-type activities
long-term liabilities $ 1503925, 144 $ 1 ,558,313 $ (13,796,089) $ 1381687,368 $ 9,8521422
Component Unit:
Bonds:
Tax revenue bonds $ 53463,000 $ - $ (1 ,080.000) $ 4,383,000 $ 1 , 1500000
Add bond premium 14, 310 - (31660) 10,650 3,660
Total bonds 5/4775310 - (110831660) 4,393,650 11153,660
Compensated absences 5,073 91320 (9,963) 41430 41208
Component unit
long-term liabilities $ 51482,383 $ 9, 320 $ (1 ,093,623) $ 4,398,080 $ 1 , 157,868
Comprehensive Annual Financial Report 73
Compensated Absences by Fund for Governmental Activities
12/31/02 2003 2003 12/31/03
Balance Earned Used Balance
Governmental Funds
General Fund $ 21350,187 $ 1 ,950,633 $ (19943,367) $ 21357,453
Capital Projects Fund 51 ,925 691006 (63,436) 571495
Neighborhood Parkland Fund 16,288 15,082 (15, 135) 16,235
Community Development Block Grant Fund 914 4,853 (5,096) 671
Conservation Trust Fund 3,546 3,096 (31696) 29946
Transit Services Fund 134,792 166,237 (161 ,264) 139,765
Home Investment Partnership Fund 785 2,846 (2,656) 975
Street Oversizing Fund 16,988 18,629 (20,302) 151315
Transportation Services Fund 325,097 326,833 (321 ,493) 330,437
Cultural Services & Facilities Fund 45,088 15,428 (31 ,205) 29,311
Recreation Fund 167,628 1419420 (142,472) 1660576
Cemeteries Fund 1 % 44 22,710 (21 ,927) 20,427
Total Governmental Funds 31132,882 21736,773 (20732,049) 3,137,606
Internal Service Funds Assigned to
Governmental Activities
Equipment Fund 59,000 1019332 (1009352) 590980
Self Insurance Fund 17,242 6,434 (11 ,602) 12,074
Communications Fund 19,293 25,797 (19,975) 25, 115
Benefits Fund 21 , 131 17,926 (240379) 141678
Total Internal Service Funds Assigned to
Governmental Activities 116,666 151 ,489 (156,308) 111 ,847
Total Governmental Activites $ 3,24%548 $ 2,888,262 $ (2,888,357) $ 31249,453
Internal service funds, except for the Utility Customer Service the State of Colorado provides coverage above the self-insured
and Administration fund, predominantly serve the govemmental retention.
funds. Accordingly, long-term liabilities for these funds are
included as part of the above totals for governmental activities. In 2003 , the Downtown Development Authority, a component
Long-term liabilities of the Utility Customer Service and unit, purchased general and public official liability insurance
Administration Internal service fund are, included as part of the policies from private insurance companies. The general liability
above totals for the business-type activities. policy has no deductible and the public official liability policy
has a $2 ,500 deductible. Coverage limits are as follows:
NOTE IV. OTHER INFORMATION
General Liability - $500,000/occurrence, $ 1 million
A. Risk Management aggregate
Property. Liability, and Workers Compensation Public Official Liability - $500,000/occurrence, $500,000
aggregate .
The City self-insures a portion of its comprehensive automobile
liability, general liability, police liability, and public official liability During 2003, Poudre Fire Authority, ajoint venture , also insured
exposures as well as damage or destruction of property. The itself against workers' compensation losses by purchasing a
City utilizes the Self-insurance Fund (an internal service fund ) policy with statutory limits from a private Insurance company.
to finance and account for risks of property and liability loss.
There have not been any claims that have exceeded insurance
The City purchases property insurance that has a $50 ,000 coverage during each of the past three years for either the City
deductible for most causes of loss including earthquake and or the component unit.
flood . Property located in Flood Zone A has a $500 ,000
deductible. Crime and boiler & machinery coverage has a Employee Health and Illness
$ 10,000 deductible.
The City and the component unit self-fund their employees for
In 2003, the City purchased liability insurance through a Risk comprehensive major medical benefits under four health plan
Purchasing Group consisting of other Colorado public entities. options, up to an aggregate lifetime benefit maximum of $2
This policy has a $250,000 deductible for all types of liability million per participant. The four options include two Preferred
claims. Coverage limits are as follows: Provider Options (PPO City Plans), one Health Maintenance
Option (HMO) and one Point-of-Service (POS) option . The
Benefits Fund an internal service fund is utilized to finance
General, Auto, & Law Enforcement Liability -- ( )
$3 millionloccurrence, $6 million aggregate and account for medical risks of loss. Stop-loss coverage of
$ 120 ,000 per occurrence is retained as excess risk coverage.
Public Official Liability - $3 million/each wrongful act, $6 During the past three years, there have been eight claims that
million aggregate. have exceeded the stop-loss limit.
Workers' Compensation losses are self-insured up to $400,000
per occurrence. An excess policy providing limits mandated by
74 City of Fort Collins
Funding and Claims Liabilities the considered compensation during 60 consecutive full
calendar months out of the last 120 calendar months of credited
All funds or employees of the City, as applicable, participate in service. A member is eligible for an early retirement benefit
the above risk management programs , Charges to City funds after age 55 and completion of 2 years of credited service. The
for these services are based on estimates of the amounts monthly benefit, payable for life, is equal to the vested portion
needed to pay claims and establish reserves for catastrophic of the normal retirement benefit based on credited service and
losses. compensation at early retirement, reduced by 1 /1 80th for each
of the first 60 months and 1 /360th for each additional month by
Claims liabilifies for the Self-Insurance and Benefits Funds as which payments commence prior to normal retirement date.
of December, 31 , 2003 , amount to $7,391 ,688 and $ 1 ,425,000 The Plan also provides for death and disability benefits. The
respectively. These claims were determined on an actuarial entire cost of the Plan is paid by the City as established or
basis, and reflect the Governmental Accounting Standards amended by City Council.
Board (GASB) Statement No . 10 requirement that a liability for
claims be reported, if information prior to the issuance of the A death benefit of approximately 50% of the member's vested
City's financial statements indicates that it is probable that a accrued benefit at the date of death is payable to the
liability has been incurred at December 31 , and the amount of employee's spouse for life beginning on the first day of the
the loss can be reasonably estimated. The liability of month following the later of the date of death or the date the
$7,391 ,688 for the Self-Insurance Fund is discounted at 2% member would have been age 55.
and reflects an 80% confidence level factor. The discount
refers to the full, or undiscounted amount reduced for future The spouse may elect to receive the actuarial equivalent
investment earnings that can be generated on funds held lump-sum payment. If the member was not married, the
between the date of valuation and the date of the final payment beneficiary or estate would receive the actuarial single-sum
of claims . Changes in claims liabilities amounts for 2001 , 2002 payment of the benefit.
and 2003 are as follows :
Annual Pension Cost
Self-Insurance Benefits
Fund Fund The costs of the Plan are derived by making certain specific
assumptions as to the rates of interest and mortality, which are
Claims payable— assumed to hold for many years into the future. Since actual
December 31 , 2001 $ 5,972, 134 $ 1 , 1213483 experience may differ somewhat from the assumptions, the
Claims & changes costs determined by the valuation must be regarded as
in estimates 1 ,430,970 99752,924 estimates of the true costs of the Plan. See required
Claim payments ( 1 ,274,720) (9,208.781 ) supplementary information - General Employees' Retirement
Claims payable-- Plan . Financial statements for the Plan are only presented in
December 31 , 2002 61128 ,384 10665 ,626 the City's financial statements. Please see the Fiduciary
Claims & changes Section of the Basic Financial Statements and the combining
in estimates 33829, 179 10,217 , 137 schedules in the Supplementary Information.
Claim payments (2 j 5 .875) ( 10,457 ,763)
Claims payable-- Contributions and Reserves
December 31 , 2003 $ 7 391 Bas $_AAz5_tG
The Plan's funding policy provides for actuarially determined
periodic rates determined by the aggregate actuarial cost
B. Pension Plans method. Under this method , the entire cost of an employee's
projected benefits are assigned to past, present and future
General Employees' Retirement Plan periods. Contributions are based on the actuarially determined
rates. For 2003, the City contributed 4 .50% of covered pay to
Plan Description the Plan ; this amounted to $ 1 , 063,786. The authority for
establishing or amending the obligation to make contributions
All permanent, classified , non-uniformed employees hired rests with City Council.
before January 1 , 1999 are eligible to be members of the
General Employees' Retirement Plan (the Plan), a Costs of administering the Plan are all financed from
single-employer defined benefit plan . Employees hired after contributions and earnings of the Plan . The entire balance of
January 1 , 1999 are only eligible to participate in the Money the Plan's net assets available for benefits as of December 31 ,
Purchase Plan explained below. 2003 , is $34, 107 ,332, all of which is reserved for benefits of
employees and beneficiaries .
The Plan is accounted for in the Employees' Retirement Plan
Pension Fund (a pension trust fund). Separate financial Concentrations
statements are not issued for the Plan. As of January 1 , 2004,
employee membership data related to the Plan was as follows: Investment in mutual funds exceeding 5% of the net assets of
Retirees and beneficiaries currently receiving benefits-- 127; the plan are as follows: Vanguard 500 index , 5.4% , Meridian
vested terminated employees- 112 ; active plan Value Fund , 5. 1 %, Fidelity Value Fund, 7,4% , Mutual Shares
participants--344 (including 7 partially vested , and 337 fully Fund, 6 .5% , T. Rowe Price International , 5.5 % .
vested employees).
Money Purchase Plan
Benefits vest 40% after 2 years of credited service and 20% for
each year thereafter until 100% is attained after 5 years . The City offers its employees a defined contribution money
Employees who retire at or after age 65 with 5 years of credited purchase plan . Classified employees were offered the plan for
service are entitled to an annual retirement benefit, payable the first time in 1995. In a defined contribution plan, benefits
monthly for life, in an amount equal to 1 -1 /2% of final average depend solely on amounts contributed to the plan plus
monthly compensation multiplied by years of credited service . investment earnings. Employees are eligible to participate six
Final average monthly compensation is the highest average of months from the date of employment. The plan requires both
Comprehensive Annual Financial Report 75
employer and employees to contribute amounts ranging from for cases of total disability. Effective October 1 , 2002 , the
3% to 10% (depending on job classification) of base salary -benefit is 50% of base salary for a permanent occupational
each pay period. Contributions made by the City are not disability and 40% of base pay for a temporary occupation
taxable to the employee until they are withdrawn . Employee disability.
contributions are made with pre-tax dollars, and the earnings
on City and employee contributions are not taxed until Benefits paid to members are evaluated and may be re-
withdrawn. Except for certain categories of police personnel, determined on October 1 of each year. Any increase in the
employees are fully vested upon initial participation in the plan. level of benefits cannot increase by more than 3% for any one
Swom police officers and emergency service dispatchers, who year. Totally disabled members and their beneficiaries receive
receive higher contribution rates, are fully vested upon an automatic cost of living adjustment each year of 3% .
completion of three years of service. Plan provisions and
contribution requirements are established and may be Separately issued financial statements and the related actuarial
amended by City Council . City and employee contributions to valuation may be obtained from the Fire & Police Pension
the plan were $3,637,949 and $2,324 ,369, respectively during Association .
2003.
C. Commitments/Contingencies
Deferred Compensation Plan
Construction Commitments
The City offers its employees a deferred compensation plan
created in accordance with Internal Revenue Code Section The City had commitments of $9,451 ,710 for capital projects at
457. The assets under this plan are no longer considered December 31 , 2003 . Future expenditures related to these
property of the City and are held by a second party commitments are expected to be financed through available
administrator for the exclusive benefit of the plan participants resources and future revenues.
and their beneficiaries . The City has little administrative
involvement and does not perform the investing function forthis Encumbrance Commitments for Proprietary Fund Types
plan. Therefore, these assets are no longer included as part of
the financial statements of the City. The financial statements do not include encumbrances for
proprietary fund types. However, encumbrances for these
Statewide Death and Disability Plan funds are recorded by the City for management and budgetary
control purposes . Outstanding encumbrance commitments for
Plan Description the enterprise funds at December 31 , 2003, (excluding those
relating to capital projects) amounted to $2,987,792 .
The City contributes to the Fire & Police Pension Association
(the Plan), a multi-employer cost sharing defined benefit plan Street Oversizing Liability
covering full-time employees of substantially all fire and police
departments in Colorado. Contributions to the Plan are used The City has contractual liabilities for street oversizing costs
solely for the payment of death and disability benefits . The with various developers. The developers are required to install
Plan was established in 1980 pursuant to Colorado Revised certain oversized streets as a condition of subdivision
Statutes . All uniformed employees are eligible to be members approval . Once the streets are installed and inspected by the
of the Fire & Police Pension Association . City, a liability is recorded for the difference between a
normal sized street and the oversized street installed .
Funding Policy and City Contributions
Because the City has no control over when subdivisions will be
Prior to 1997, the State of Colorado, whose contributions were developed and the related oversized street completed, the
established by Colorado statute, primarily funded the Plan. The liability for uncompleted oversizing costs has not been reflected
Stale made a one-time contribution in 1997 of $39,000,000 to in the financial statements.
fund the past and future service costs for all firefighters and
police officers hired prior to January 1 , 1997. No further State D . Legal Matters
contributions are anticipated.
Pending Litigation and Grants
Members hired on or after January 1 , 1997 , contribute 2.30% of
payroll to this fund. During 2003, the City contributions were Various claims and lawsuits are pending against the City. After
$56,626 . This contribution rate increased to 2.4% effective consideration of applicable insurance policy coverage, and the
January 1 , 2004. It should be noted that this percentage can relative merits of each claim or lawsuit, it is the opinion of the
vary depending on actuarial experience . City Attorney and City management that the potential ultimate
liability resulting from these actions, if any, will not have a
Benefits material adverse financial effect on the City.
Benefits are established by Colorado statute . Under the terms of federal and state grants, periodic audits are
required and certain costs may be questioned as not being
If a member dies prior to retirement, the surviving spouse is appropriate expenditures under the terms of the grants. Such
entitled to a benefit equal to 40% of the members monthly base audits could lead to reimbursement to the grantor agencies.
salary with an additional 10% of base salary if a surviving City management believes disallowances, if any, resulting from
spouse has two or more dependent children , or if there are any such audits would be immaterial . There currently are no
three or more dependent children without a surviving spouse. material disallowed or questioned costs.
Benefit entitlement continues until death of the spouse and
death, marriage, or other termination of dependency of children.
A member who becomes disabled prior to retirement shall be
eligible for disability benefits . The benefit is 70% of base salary
76 City of Fort Collins
Tax, Spending . and Debt Limitations For the Year Ended December 31 , 2003
Article X, Section 20, of the State Constitution has several Total operating revenue 345, 889
limitations , including those for revenue, expenditures, property Total operating expenses (976,257)
taxes, and issuance of debt. These provisions of the Interest Income 50026
Constitution are complex and subject to judicial interpretation. Nonoperating revenue 1200000
In the opinion of management, the City is in compliance with Capital contributions 105 ,769
such provisions . In 1997, the Citys electorate approved the Change in Net Assets 3$ 399457�3)
ongoing retention of excess revenue by the City, requiring the
excess revenue be spent for specified purposes. This Contributed Capital
alleviated the need by the City to seek annual approval to retain
excess =revenue and excess property tax. The City did not Prior to January 1 , 2001 , the Airport recorded capital grants or
exceed - the revenue limitation in 2003, and exceeded the contributions from the Cities as contributed capital . Currently,
property tax limit by $21392,729. the Airport records capital contributions as nonoperating
revenue. The contributed capital is amortized to net assets
The excess revenue will be used for the purposes of public over the lives of the assets purchased .
health and safety (including, but not limited to environmental
monitoring and mitigation), growth management, transportation City Share of Net Assets
services , and maintaining and repairing City facilities.
The City's annual contribution is reflected as an other
E. Related Party Transactions expenditure of the General Fund . The City's share of Fort
Collins-Loveland Airport's Net Assets and Change in Net
Due to the nature of the relationships, the City has related party Assets are reflected in the City's Statement of Net Assets and
transactions with various entities. The following transactions Statement of Activities, respectively.
have occurred during 2003 :
Stand-Alone Financial Statements
Fort Collins-Loveland Airport
The stand-alone financial statements for the Fort Collins-
Intergovernmental Agreement Loveland Airport can be obtained from the City of Loveland.
The Airport is jointly operated under an Intergovernmental Poudre Fire Authority
Agreement between the City of Fort Collins, Colorado and the
City of Loveland , Colorado. Pursuant to the agreement, any As mentioned in the summaryof significant accounting policies ,
needed contributions for annual operating budgets or capital the City provides funding for PFA. During 2003, such funding
improvements are shared equally by both cities. Also , either amounted to $ 12,725,680. In addition, the City provided
City may invest additional funds in the Airport as it sees fit. accounting and administrative services to PFA at no charge .
Since July 3, 1979 , ownership of assets vests equallywith each Platte River Power Authority
City. Assets acquired prior to July 3, 1979 vested one-third with
the City.of Loveland and two-thirds with the City of Fort Collins . The Light and Power Fund purchases all of its electrical power
from PRPA. During 2003 , these purchases amounted to
The agreement provides that if either City does not pay its one- $48, 524,782 of which $4, 117,218 is included in accounts
half of agreed expenses in a given year, it will convey to the payable at December 31 , 2003 .
other City ten percent of its total Airport ownership. Each City
contributed $60 ,000 in 2003 and 2002. Harmony Library
Financial Information As mentioned in the joint ventures , the City provides funding for
Harmony Library. During 2003, such funding amounted to
The Fort Collins-Loveland Municipal Airport is accounted for as $7679290.
a proprietary joint venture. A summary of financial information
is as follows: Fort Collins Housing Authority
As of December 31 , 2003 As mentioned in the related organizations, the City allows the
Fort Collins Housing Authority (FCHA) to participate in its
Total current assets $ 247,649 employee medical and dental plans and bills the Fort Collins
Total capital assets (net of accumulated Housing Authority for this coverage . In addition , FCHA also
depreciation ) 7,519,667 uses the City's fleet services for vehicle maintenance. During
Total Assets 79767, 316 2003, billings for employee benefits and fleet charges
Total current liabilities (37,621 ) amounted to $202,074 .
Total Net Assets $
North Front Range Transportation and Air Quality Planning
Net assets invested in capital assets $71519,667 Council
Unrestricted net assets 210 ,028
Total Net Assets E729,695 As mentioned in the joint ventures, the City allows the North
Front Range Transportation and Air Quality Planning Council
(NFRTAQPC) to participate in its employee medical and dental
plans and bills NFRTAQPC for this coverage. In addition,
NFRTAQPC also used the City's fleet services for vehicle
maintenance. During 2003, billings for fleet charges and Dial A
Ride amounted to $54,213.
Comprehensive Annual Financial Report 77
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
GENERAL EMPLOYEES' RETIREMENT PLAN(1 )
CALCULATION OF NET PENSION OBLIGATION AND PENSION COST
(As required by GASB No, 27)
Annual Net Pension Net Pension
Required Obligation interest on Amorti- Annual Actual Obligation
Plan Contribution (NPO) as NPO to zation ARC Pension Employer at End
Year (ARC) of January 1 End of Year Factor Adjustment Cost (APC) Contribution of Year
2001 7330342 (7427840) (55,713) 7.5966 (97,786) 7759415 894, 884 (8221309)
2002 80%796 (822,309) (61 ,673) 7.4086 (110,994) 659, 117 1 , 105,967 ( 11069, 159)
2003 1 ,008,352 (11069, 159) (80, 187) 7.4880 (142 ,876) 1 , 071 , 043 11063,786 ( 1 , 061 , 902)
A schedule of Funding Progress for the General Employees' Retirement Plan is not required because it uses the aggregate actuarial cost
method, where actuarial accrued liabilities are not identified or separately amortized. They are amortized through normal cost.
Seven year historical information of the General Employees' Retirement Plan is presented to help users assess the plan 's status on a going
concern basis , assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employee
retirement systems.
SCHEDULE OF EMPLOYER CONTRIBUTIONS
% of
Annual
Annual Required
Plan Required Contribution
Year Contribution Recognized
1997 1 ,223,824 106%
1998 1 ,3579123 107%
1999 891 ,830 92%
2000 760,075 195% "
2001 733,342 117%
2002 809, 796 137%
2003 1 ,0080352 106%
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
Valuation date: January 01 , 2004
Actuarial cost method: Aggregate; this method does not identify or separately amortize unfunded actuarial liabilities.
Amortization method: N/A; (no unfunded liability).
Remaining amortization period : N/A; (no unfunded liability) .
Asset valuation method : An expected actuarial value is determined equal to the prior year's actuarial value
of assets plus cash flow (excluding realized and unrealized gains or losses) for
the year ended on the valuation date and assuming a 7.5% interest return . The
unrecognized gain or toss is then added to the expected value. Any difference
between this amount and the market value of the assets is set up as a gain or
loss base and amortized over 5 years. The result is constrained to a value of
80% to 120% of the market value of assets at the valuation date in order to
determine the final actuarial value of assets.
Investment rate of return : 7.5% (including inflation at 3 .5%)
Projected pay increases: Ranges from 8 .2% at age 25 to 3 . 5% at age 64 (including inflation at 3.5%)
`Cost of living: The contributions for fiscal year 2000 include $635,726 in contributions
( 1 ) Unaudited. made to cover a one-time cost of living adjustment for current retirees .
78 City of Fort Collins
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS(1 )
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital
assets . The City has several major infrastructure systems including the street system and various systems
that distribute utility services. Each major infrastructure system can be divided into subsystems. For example,
the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks,
medians, streetlights , traffic control devices (signs, signals and pavement markings) , landscaping and land.
Subsystem detail is not presented in these basic financial statements ; however, the City maintains detailed
information on these subsystems.
The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure
reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible infrastructure capital
assets are not required to be depreciated under the following requirements:
• The City manages the eligible infrastructure capital assets using an asset management system with
characteristics of (1 ) an up-to-date inventory; (2) perform condition assessments and summarize the
results using a measurement scale ; and (3) estimate annual amount to maintain and preserve at the
established condition assessment level.
• The City documents that the eligible infrastructure capital assets are being preserved approximately
at or above the established and disclosed condition assessment level . The City's Pavement
Management Program conducts condition assessment surveys of 1 /3 of the street system annually.
City owned streets are classified based on land use , access and traffic utilization into the following
three classifications: arterial , collector and local . Each street was assigned a physical condition
based on potential defects . A Pavement Condition Index (PCI) , a nationally recognized index, was
assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to
the least acceptable physical condition and 100 is assigned to the physical characteristics of a new
street. The following conditions were defined :
Condition Rating
Excellent 91 - 100
Good 81 - 90
Fair 51 - 80
Poor 41 - 50
Very Poor 0 - 40
The City Policy is to achieve an average rating of 75 for all streets , which is a fair rating . This rating allows
minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers
traveling at posted speeds . The most recent 3 year assessment cycle was completed as of December 31 ,
2003, That assessment rated the City's street system at a PCI index of 75 .5 on average with the detail
condition as follows :
Condition Distribution
Excellent 25%
Good 27%
Fair 35%
Poor 10%
Very Poor 3%
The City's next full 3 year assessment cycle will be completed as of December 31 , 2006.
(1 ) Unaudited.
Comprehensive Annual Pinanciai Report 79
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (continued)(1 )
The City's streets are constantly deteriorating resulting from the following five factors; ( 1 ) traffic using the streets ;
(2) the sun's ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private
development interests trenching operations; (4) winter freeze/thaw condition and water damage from both
natural and other urban runoff; and (5) growth of the existing street system . The City is continuously taking
actions to arrest the deterioration through short-term maintenance activities such as crack sealing, pothole
patching, street sweeping, and sidewalk repair.
The City expended $6,718,582 and $6,485, 144 in 2003 and 2002, respectively, on street maintenance and
street rehabilitation . These expenditures delayed deterioration ; however, the overall condition of the streets
were not improved through these maintenance expenditures. The City has estimated that the amount of
annual expenditures required to maintain the City's streets at an average PCI rating of 75 . A schedule of
estimated annual amount calculated to maintain and preserve its streets at the current level compared to
actual expenditures for the street maintenance for the last three years is presented below.
Maintenance Actual
Year Estimate Expenditure
2001 $ 6,2311016 $ 61401 ,016
2002 $ 6,623,600 $ 61485, 144
2003 $ 77031 ,975 $ 61718,582
(1 ) Unaudited .
80 City of Fort Collins
NON- MAJOR GOVERNMENTAL FUNDS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Special Revenue Funds
Community Development Block Grant (CDBG) -- to account for revenues received from the federal government which are restricted to
financing the city's Community Development Block Grant Program.
Conservation Trust Fund -- to account for revenues received from the Colorado State Lottery through the State Conservation Trust
Fund which are restricted to financing capital projects which relate to the acquisition and development of open space and trails.
Cultural Services and Facilities -- to account for revenues received from the Lincoln Center facility, the Fort Collins Museum ,
performing and visual arts and General Fund subsidies used to promote cultural activities.
General Improvement District No. 1 -- to account for property taxes and investment earnings used to fund debt service and other
activities of the General Improvement District No. 1 .
Parkland -- to account for parkland fees used to fund neighborhood park and capital improvements.
Recreation -- to account for recreation fees and General Fund subsidies used to provide recreational programs for citizens.
Street Oversizing -- to account for street oversizing fees used to pay the City's portion of street oversizing costs.
Transit Services -- to account for federal grants and other revenues utilized to operate and maintain the City's bus system .
Cemeteries -- to account for revenues collected from the sale of burial plots.
Perpetual care -- to account for monies set aside for the maintenance costs of burial plots.
Emergency Recovery — to account for revenues received from the Federal Government for assistance needed in response to natural disasters.
Home -- to account for revenues received from the federal government restricted to financing the City's Home Program.
Capita[ Expansion -- to account for capital expansion fees collected by the City and various projects funded by those fees.
Open Lands -- to account for land parcels purchased by the City that will be used as open space areas .
Debt Service Funds
Debt Service -- to account for property taxes and transfers from other funds used to pay general obligation bonds , sales and use tax
revenue bonds , and highway users tax revenue bonds.
Special Assessments -- to account for amounts received from special assessments used to pay special assessment bond and general
obligation bonds payable from special assessments .
Fort Collins Leasing Corporation -- to account for rental amounts received from lease payments between the City and the Corporation
on municipal buildings and other structures. Monies used to pay certificates of participation issued by the Corporation.
Comprehensive Annual Financial Repoli 81
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31 , 2003
SPECIAL REVENUE FUNDS
Cultural General
Conservation Services & Improvement
CDBG Trust Facilities District No. 1 Parkland
ASSETS
Cash and cash equivalents $ 64,314 $ 10301 , 607 $ 1 ,244,709 $ 691 ,476 $ 211753602
Investments 400v876 500,870 - 41040, 480
Receivables
Property taxes - - - 182,002 -
Accounts - - 241904 - 8,333
Special assessments - - - -
Notes 241 , 828 - - - -
Accrued interest - 33651 12,578 - 34, 564
Due from other governments - - - 21470
Inventory of real property
held for resale - - -
Total Assets $ 306, 142 $ 117069134 $ 1 ,783,061 $ 875, 948 $ 62258, 979
LIABILITIES AND FUND
BALANCES
Liabilities
Accounts payable , accruals
and other $ 24,443 $ 111 , 161 $ 115,421 $ 176 $ 277
Accrued wages payable 29631 60032 27, 183 - 51638
Deferred revenue - - 419, 189 182, 002 -
Total Liabilities 27 ,074 117, 193 561 , 793 182, 178 5, 915
Fund Balances
Reserved for encumbrances 427,300 64,345 1782742 39 1190339
Reserved for long-term notes receivable 237, 328 - - - -
Reserved for inventory of real property
held for resale
Reserved for debt service - - - - -
Reserved for contractual and other - 1 ,376 4141386 - -
Unreserved
Designated for capital projects - 1 ,523,220 - - 6, 1331725
Designated for equipment replacement - - - - -
Undesignated (deficit) (385,560) - 6289140 6939731 -
Total Fund Balances 2799068 1 ,588,941 11221 , 268 693,770 6,2530064
Total Liabilities and Fund Balances $ 306, 142 $ 19706, 134 $ 11783, 061 $ 875,948 $ 61258, 979
See the accompanying independent auditors' report.
82 City of Fort Collins
SPECIAL REVENUE FUNDS
Street Transit Perpetual Emergency
Recreation Oversizing Services Cemeteries Care Recovery
$ 19729,743 $ 1 , 378,398 $ 1 , 1311888 $ 236; 104 $ 279,029 $
4110900 - - 952 , 147 -
182 ,782 722 ,769 57 ,487 73,271 25, 985 -
3 ,752 - - 14,395 -
29 ,437 _
$ 1 , 912 ,525 $ 21516,819 $ 1 , 189 ,375 $ 338,812 $ 12271 , 556 $ -
$ 1810091 $ 60, 404 $ 62,521 $ 4, 459
104,669 11 ,603 115, 702 81548
285 ,760 723007 178 , 223 133007 -
5% 806 129593 419, 810
29,437
1431885 - - - 50352
160,000 2 ,432,219 591 ,342
996 ,757
2661317 - 296,368 11266 ,204 -
11626*765 2 ,444,812 1 ,011 , 152 325,805 19271 ,556 -
$ 1 ,912 , 525 $ 2,516, 819 $ 1 , 189,375 $ 338 , 812 $ 1 ,271 , 556 $ -
Comprehensive Annual Financial Report 83
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (continued)
DECEMBER 31 , 2003
SPECIAL REVENUE FUNDS (continued)
Total
Capital Open Special
Home Expansion Lands Revenues
ASSETS
Cash and cash equivalents $ 294 ,264 $ 101828 ,002 $ 11404,203 $ 22, 769 ,339
Investments - 71969, 156 - 14 ,275,429
Receivables
Property taxes - - - 182,002
Accounts - 17 , 155 - 11112,686
Special assessments - - - -
Notes 1 ,0381000 - - 11279 ,828
Accrued interest - 649393 - 133 ,333
Due from other governments - - - 21470
Inventory of real property
held for resale - - - 29,437
Total Assets $ 1 ,332,264 $ 189878 ,706 $ 1 ,404 ,203 $ 39 ,774,524
LIABILITIES AND FUND
BALANCES
Liabilities
Accounts payable, accruals
and other $ 90060 $ 2 ,331 $ - $ 571 ,344
Accrued wages payable 11634 - - 283,640
Deferred revenue - - - 601 , 191
Total Liabilities 10,694 21331 1 ,456 , 175
Fund Balances
Reserved for encumbrances 359 ,913 291763 - 116719650
Reserved for long-term notes receivable 1 ,038 ,000 - - 12275,328
Reserved for inventory of real property
held for resale - - - 291437
Reserved for debt service - - -
Reserved for contractual and other - 271192 - 592 , 191
Unreserved
Designated for capital projects - 18 , 819,420 - 29,659 ,926
Designated for equipment replacement - - - 9961757
Undesignated (deficit) (76,343) - 1 ,404,203 41093$060
Total Fund Balances 113211570 189876,375 19404,203 38,318 ,349
Total Liabilities and Fund Balances $ 12332,264 $ 189878 ,706 $ 114043203 $ 39 ,7741524
See the accompanying Independent auditors' report
84 City of Fort Collins
DEBT SERVICE FUNDS
Fort Collins Total Total
Debt Special Leasing Debt Non-major
Service Assessments Corporation Service Governmental
$ 11 , 766 $6771349 $ - $ 689, 115 $ 237448,454
14, 2757429
182, 002
111129686
16,057 - 16,057 16,057
19279,828
133,333
2,470
29,437
$ 11 ,766 $ 693,406 $ - $ 705, 172 $ 40,479,696
$ - $ 571 ,344
283,640
16, 057 - 16 ,057 617,248
16 , 057 16,057 1 ,472 ,232
1 ,671 ,650
1 ,275,328
- - 29,437
11 ,766 677,349 - 6891115 689, 115
592 , 191
29, 659 ,926
996,757
4,093,060
11 ,766 677 ,349 689, 115 39, 0079464
$ 11 ,766 $ 693 ,406 $ $ 705, 172 $ 40,479,696
Comprehensive Annual Financial Report 85
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES , EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31 , 2003
SPECIAL REVENUE FUNDS
Cultural General
Conservation Services & Improvement
CDBG Trust Facilities District No . 1 Parkland
REVENUES
Taxes $ - $ - $ - $ 211 , 723 $ -
Intergovernmental 1 ,666 ,958 11169 ,445 10 , 700 - -
Fees and charges for services - - 119051026 - 19976 ,290
Earnings on investments 21249 240338 40 ,923 80145 174, 158
Net decrease in the fair value
of investments - (2,219 ) (19 ,270 ) - (71 ,709)
Miscellaneous revenue 1023590 24 , 100 310 ,844 10 -
Total Revenues 11771 ,797 112151664 21248 ,223 219 ,878 21078 , 739
EXPENDITURES
Current operating
Culture and recreation - - 31418 ,078 - -
Transportation
Emergency recovery -
Other 11741 ,300 - - 17 ,492 -
Capital outlay - 11047 , 160 - - 993 ,498
Debt service
Principal
Interest
Total Expenditures 117417300 11047 , 160 39418 ,078 17 ,492 993 ,498
Excess of Revenues Over (Under)
Expenditures 30 ,497 168 ,504 (11169 ,855) 202,386 1 ,085 ,241
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of general
long-term debt
Transfers in - - 11192 ,888
Transfers out - ( 10 ,500 ) (21 ,705) (146 ,480) (36,645)
Payments to refunded bond escrow agent
Total Other Financing Sources (Uses) - ( 10 , 5021 11171 , 183 ( 146 ,480 ) (36 ,645)
Excess of Revenues and Other Sources
Over (Under) Expenditures and Other Uses 30 ,497 158 ,004 11328 55,906 1 ,0481596
Fund Balances--January 1 248 ,571 19430 ,937 1 ,2191940 637,864 51204,468
Fund Balances--December31 $ 2797068 $ 11588 ,941 $ 1 ,221 ,268 $ 6930770 $ 612538064
See the accompanying independent auditors' report.
86 City of Fort Collins
SPECIAL REVENUE FUNDS
Street Transit Perpetual Emergency
Recreation Oversizing Services Cemeteries Care Recovery
65 ,333 - 2 , 685, 680 - - 1059781
31775,593 312442900 1 ,059,703 358 ,901 552851 -
17,900 389557 11 , 993 2,086 409658 -
(5,790) - - (7,471 ) -
577372 11180,469 263,049 10, 760 -
39916, 198 4,4581136 41020,425 371 ,747 8%038 105,781
7, 3289674 - - 509, 191 - -
773,086 7,848,815
601 ,940
- - - - 682 -
77%784
79328 ,674 1 , 552,870 7, 848, 815 509, 191 682 601 , 940
(31412,476) 21905 ,266 (31828 , 390) ( 137,444) 88, 356 (496, 159)
317803976 5239050 4, 2931710 2383481 - 496, 159
(31658,626) (800590) (49,014) ( 1 ,937,326)
3 ,780,976 (311351576Z 4,213 , 120 2389481 (49, 014) (11441 , 167)
368,500 (230,310) 384,730 101 ,037 39,342 (11937,326)
11258 , 265 21675, 122 626,422 224,768 1 /2323214 1 ,937,326
$ 1 , 626,765 $ 214441812 $ 1 ,011 , 152 $ 3259805 $ 1 ,271 , 556 $ -
Comprehensive Annual Financial Report 87
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31 , 2003
SPECIAL REVENUE FUNDS (continued)
Total
Capital Open Special
Home Expansion Lands Revenue
REVENUES
Taxes $ - $ - $ - $ 211 , 723
Intergovernmental 891 , 324 - 311987939 90794 , 160
Fees and charges for services - 3 ,7781414 - 16 , 154,678
Earnings on investments 39 ,508 368,646 58 ,560 827, 721
Net decrease in the fair value
of investments - (60 ,012) - ( 166,471 )
Miscellaneous revenue 1399656 - - 2 ,088,850
Total Revenues 11070 ,488 400879048 31257,499 28 ,910 ,661
EXPENDITURES
Current operating
Culture and recreation - - - 11 V2557943
Transportation - - - 816212901
Emergency recovery - - - 601 , 940
Other 11141 ,335 - 47,996 21948,805
Capital outlay - 3711742 71233,087 10 ,425,271
Debt service
Principal - - -Interest - - - -
Total Expenditures 11141 ,335 371 ,742 77281 ,083 33 ,853 , 860
Excess of Revenues Over (Under)
Expenditures (70,847) 31715,306 (42023,584) (41943 , 199)
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of general
long-term debt - - -
Transfers in - - - 10 ,525,264
Transfers out - ( 11579 ,284) - (715209170)
Payments to refunded bond escrow agent - - - -
Total Other Financing Sources (Uses) - ( 11579,284) - 3,005 ,094
Excess of Revenues and Other Sources
Over (Under) Expenditures and Other Uses (70,847) 2 , 1361022 (41023,584) (11938, 105)
Fund Balances—January 1 11392,417 16 ,7409353 514272787 40,2561454
Fund Balances--December31 $ 11321 ,570 $ 18,876,375 $ 11404,203 $ 38 ,3181349
See the accompanying independent auditors' report
88 City of Fort Collins
DEBT SERVICE FUNDS
Fort Collins Total Total
Debt Special Leasing Debt Non-major
Service Assessments Corporation Service Governmental
211 ,723
91794, 160
- - - 16; 154;678
51596 524 6, 120 833,841
( 166,471 )
351 , 701 351 ,701 2,4409551
- 51596 352,225 357, B21 291268,482
11 ,255,943
81621 ,901
6019940
147, 710 - 21150 1491860 3j098p665
10,4252271
21060,000 794, 188 2,8541188 218549188
679, 555 - 835, 877 19515,432 1 ,515,432
2,887,265 116320215 41519,480 38,3730340
(2, 8871265) 59596 _ ( 1 ,279,990) (43161 ,659) 9, 104,858
59842, 930 - 518429930 5,8429930
41021 , 101 - 11232,778 5,2532879 1507792143
(4,914,909) - (419147909) ( 12,4350079)
(61965,000) - - (61965, 000) (6,9659000)
21899,031 (41914, 909) 10232,778 (783, 100) 21221 ,994
11 ,766 (41909,313) (47 , 212) (43944,759) (6,882,864)
5/5860662 47,212 50633,874 45,890,328
$ 11 ,766 $ 677v349 $ $ 689 , 115 $ 39,007,464
Comprehensive Annual Financial Report 89
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON -GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Intergovernmental $ 1 ,666 ,958 $ 21185, 033 $ 3,851 ,991 $ 5 ,0907062 $ ( 11238 ,071 )
Earnings on investments 21249 - 2r249 869851 (847602)
Miscellaneous revenue 102 ,690 - 102, 590 350 ,448 (247, 858 )
Total revenues 11771 ,797 2 , 185 ,033 3 ,9561830 5 , 527 , 361 ( 11570 ,531 )
EXPENDITURES
2000-01 Grant 111000 - 111000 80 ,000 69 ,000
2001 -02 Grant 58 , 315 486 ,461 544 ,776 544 ,776 -
2002-03 Grant 113713207 981 ,522 21352 ,729 21528 ,370 175, 641
2003-04 Grant 300 ,778 - 300 ,778 11546 ,086 11245 , 308
Total Expenditures 117417300 11467 ,983 31209 ,283 41699 ,232 114899949
Excess ( Deficiency) of Revenues
Over (Under) Expenditures 30 ,497 $ 717 ,050 747,547 $ 828 , 129 $ (800582)
Fund Balances -- January 1 248 , 571 248 , 571
Less prior years' grant revenues - (211851033)
Plus prior years' grant expenditures - 1 , 467,983
Fund Balances--December 31 $ 279,068 $ 279r068
See the accompanying independent auditors' report,
90 City of Fort Ft. Collins
CONSERVATION TRUST FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET ( NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Intergovernmental $ 1 , 169 ,445 $ 10 ,810, 111 $ 11 , 979,556 $ 11 ,353, 601 $ 6259955
Earnings on investments 24,338 298,537 3223875 444,212 ( 121 , 337)
Net increase (decrease) in the fair value
of investments (21219) 3,595 11376 - 11376
Miscellaneous revenue 249100 140,345 164,445 1139725 50 ,720
Total Revenues 1r2151664 112252 , 588 12 ,4689252 11 ,911 ,638 556,714
EXPENDITURES
Open space acquisition 26,834 978,277 1 ,005, 111 19052,403 47,292
Trail acquisition/development 544 , 546 4 ,865,618 5,410, 164 5,656,891 246,727
Open space and trail maintenance 63,685 656,725 720 ,410 721 , 116 706
Fossil creek trail 10,272 21475,311 21485 , 583 21704 ,600 219 ,017
Tri-City trails 132,419 224 ,375 356,794 504,000 147,206
Poudre River boat chutes - 230 ,000 230,000 230,000 -
Administration 269,404 - 269,404 294,566 259162
Total Expenditures 1 ,0470160 99430,306 10 ,477,466 11 , 163 ,576 686, 110
Excess of Revenues Over
Expenditures 1689504 19822,282 11990 ,786 7479962 11242,824
OTHER FINANCING SOURCES (USES)
Transfers in
Capital Projects Fund - 2350000 235,000 4350000 (2000000)
Transfers out
Capital Projects Fund - (217 ,618) (217,618) (11017,618) 800,000
Cultural Services Fund ( 10,500 ) (40p250) 50,750 (507750) -
Total Other Financing
Sources ( Uses) ( 10,500) (22,868 ) (33, 368) (633 ,368) 6009000
Excess of Revenues and Other Sources
Over Expenditures and Other Uses 158v004 $ 1 ,799,414 11957,418 $ 114 ,594 $ 19842,824
Fund Balances--January 1 11430t937 11430,937
Less Prior Years' Project Revenues - ( 11 ,487 ,588 )
Plus Prior Years' Project Expenditures - 916881174
Fund Balances-December 31 $ 19588,941 $ 11588,941
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 91
CULTURAL SERVICES AND FACILITIES FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES Actual Budget (Negative)
Intergovernmental $ 101700 $ 313,392 $ (3029692)
Fees and charges for services 1 ,9059026 1 , 887,397 17,629
Earnings on investments 40,923 42, 000 ( 11077)
Net decrease in fair value of investments ( 193270) ( 19,270)
Miscellaneous revenue 31 %844 406,758 (95,914)
Total Revenues 2 ,248,223 216492547 (401 ,324)
EXPENDITURES
Administration 738,602 776, 731 38, 129
Lincoln Center 610,609 6929367 81 ,758
Museum 425,594 817,897 392,303
Performing and visual arts 1 ,643,273 21294, 822 6517549
Total Expenditures 31418,078 4, 581 ,817 11163, 739
Excess of Revenues Over
(Under) Expenditures ( 19169,855) ( 1 ,932,270) 762 ,415
OTHER FINANCING SOURCES
Transfers in
General Fund 190569451 1 ,056,451 -
Capital Projects Fund 1093217 109,217
Parkland Fund 111000 119000
Golf 50720 51720 -
Conservation Trust Fund 10, 500 101500 -
Transfers out
Capital Projects Fund (211705) (219758) 53
Total Other Financing Sources 1 , 171 , 183 11171 , 130 53
Excess of Revenues and Other
Sources Over (Under) Expenditures 1 ,328 $ (7611140) $ 7629468
Fund Balances--January 1 11219,940
Fund Balances--December 31 $ 11221 ,268
See the accompanying independent auditors' report.
92 City of Fort Collins
GENERAL IMPROVEMENT DISTRICT NO , 1 FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES Actual Budget (Negative) _
Taxes $ 211 , 723 $ 213 , 528 $ ( 11805)
Earnings on investments 8, 145 12,090 (31945)
Miscellaneous revenue 10 10
Total Revenues 219 , 878 225?618 (5 ,740)
EXPENDITURES
Other 172492 193,395 175, 903
Excess of Revenues Over
Expenditures 202, 386 32,223 170, 163
OTHER FINANCING USES
Debt Service Fund - COPS _ ( 146,480) ( 146 ,480) -
Total Other Financing Uses ( 146 ,480) ( 146, 480) -
Excess of Revenues Over (Under)
Expenditures and Other Uses 55,906 $ 1142257 $ 170, 163
Fund Balances--January 1 637, 864
Fund Balances-- December 31 $ 693,770
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 93
PARKLAND FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON - GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Intergovernmental $ - $ 524,898 $ 5243898 $ 2563128 $ 268, 770
Fees and charges for services 19976,290 15 ,846,041 179822 ,331 150332,390 21489, 941
Earnings on investments 174, 158 578,583 752 ,741 8809093 ( 1273352)
Net increase (decrease) in the fair value
of investments (71 ,709) 73, 199 1 ,490 - 11490
Miscellaneous revenue - 1033278 103 ,278 238 ,033 ( 134 , 755)
Total Revenues 2 ,0781739 1791253999 19,2041738 16 ,706,644 2 ,498,094
EXPENDITURES
New site acquisition 35 , 660 11678 , 337 1 ,713 ,997 27321 ,423 607,426
New park site development 78 , 832 705 ,970 784 ,802 11044,728 259 ,926
Stewart Case Park - 11004,801 1 ,004,801 1 , 160,957 156 , 156
Harmony Park 31471 11676,277 11679,748 11689,300 %552
Westfield Park 82 , 652 11241 ,979 11324 ,631 19409, 174 84 ,543
Miramont Park 41412 1 , 100,728 19105 , 140 11105,226 86
Cottonwood Glen Park - 740,620 740,620 795 ,316 549696
Lee Martinez Park addition - 132, 165 132, 165 137, 162 41997
Spring Park restroom 130, 855 91 ,980 222,835 222 , 835
Huidekoper Park 33000 114 ,983 1179983 250 , 000 132 ,017
Edora Park - Skate Park 51972 - 59972 13, 354 7 ,382
Lilac Park 743800 37, 305 1123105 177, 000 64 ,895
Iron Horse - 11 ,000 112000 602, 000 591 ,000
Homestead Neighborhood Park 273, 181 628 ,989 902, 170 13021 , 000 118, 830
Provincetowne Park - 560 560 650, 000 649,440
Rabbit Brush Park 775 89647 9,422 230,480 221 ,058
Warren Park restroom 13,423 - 13,423 150, 000 136,577
Waterglen Park - - - 2509000 250,000
Registry Ridge - - 50, 000 50,000
Richards Lake 6 138 ,021 1380027 250, 000 111 ,973
Staley Neighborhood Park - 65 ,776 650776 75, 000 9,224
Parkland administration 276 ,015 - 276 ,015 293, 909 17 ,894
Park equipment replacement 10 ,444 - 10,444 15, 000 41556
Total Expenditures 993 ,498 91378 , 138 10 ,371 ,636 13,9139864 3 ,542 ,228
Excess of Revenues Over
Expenditures 11085 ,241 71747 ,861 81833, 102 2,792, 780 69040 ,322
OTHER FINANCING SOURCES (USES)
Transfers in
General Fund 829162 82, 162 829162
Transfers out
Cultural Services and Facilities Fund ( 11 ,000) (56 , 174) (679174) (75, 174 ) 81000
Capital Projects Fund _ _ _(251645) ( 15%667) ( 185,312) (313, 220) 127 ,908
Total Other Financing Sources (Uses) (36 ,645) ( 1339679) ( 170t324) (306, 232) 135 ,908
Excess of Revenues and Other
Sources Over Expenditures and
Other Uses 1 ,048 ,596 $ 7, 614 , 182 8 / 6629778 $ 2 ,486,548 $ 61176 ,230
Fund Balances--January 1 5 ,2041468 59204,468
Less Prior Years' Project Revenues ( 17 , 208, 161 )
Plus Prior Years ' Project Expenditures 91593,979
Fund Balances-- December 31 $ 6 ,2531064 $ 61253,064
See the accompanying independent auditors' report.
94 City of Fort Collins
RECREATION FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES --
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES Actual Budget (Negative)
Intergovernmental $ 65 , 333 $ 1231742 $ (58 ,409)
Fees and charges for services 3 , 775 , 593 31661 , 562 114 ,031
Earnings on investments 17 ,900 18 ,000 ( 100)
Miscellaneous revenue 57, 372 18 ,650 38,722
Total Revenues 31916 , 198 39821 ,954 94 ,244
EXPENDITURES
Recreation administration 31359 ,216 3 , 7211768 362 , 552
Ice/aquatics programming 21121 ,741 2 , 1581287 36 ,546
Adult programming 583 ,708 587,546 31838
Youth programming 819 ,824 8637862 449038
Sports programming 279 ,253 300t497 21 ,244
Special reserves 1160500 119 , 902 3 ,402
Grants/miscellaneous 48 ,432 123 , 742 75,310
Total Expenditures 713287674 79875,604 5469930
Excess of Revenues Over
(Under) Expenditures (31412 ,476 ) (41053 , 650 ) 641 , 174
OTHER FINANCING SOURCES
Transfers in
General Fund 31780 ,976 397809976 -
Total Other Financing Sources 31780 ,976 3,780 ,976 -
Excess of Revenues and Other
Sources Over (Under) Expenditures 368 , 500 $ (27216744 $ 641 , 174
Fund Balances--January 1 11258 ,265
Fund Balances--December 31 $ 1 ,626 ,765
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 95
STREET OVERSIZING FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
Actual Budget (Negative)
REVENUES
Fees and charges for services $ 3 /2442900 $ 31609 ,340 $ (364 ,440)
Earnings on investments 38,557 53 ,617 (157060)
Net (decrease) in the fair value of investments (51790 ) - (51790)
Miscellaneous revenue 11180 ,469 100,000 110802469
Total Revenues 4 ,458 , 136 31762 ,957 695 , 179
EXPENDITURES
Oversizing costs 11552,870 31206 ,700 17653,830
Excess of Revenues Over
Expenditures 27905,266 556 ,257 21349, 009
OTHER FINANCING SOURCES (USES)
Transfers in
General Fund 523,050 523,050 -
Transfers out
Capital Projects Fund (30658 ,626) (79699 ,068) 41040,442
Total Other Financing
Sources (Uses) (31135,576) (71176 ,018) 41040 ,442
Excess of Revenues and Other
Sources Over (Under) Expenditures
and Other Uses (2303310) $ (61619 ,761 ) $ 61389,451
Fund Balances--January 1 2 ,675, 122
Fund Balances—December 31 $ 21444 ,812
See the accompanying independent auditors' report.
96 City of Fort Ft Collins
TRANSIT SERVICES FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
REVENUES
Actual Basis Basis Budget (Negative)
- -
Intergovernmental $ 2,685,680 $ 10*6713151 $13,356,831 $ 171226, 198 $ (3,869,367)
Fees and charges for services 11059,703 4, 105,689 59165,392 59234, 895 (6%503)
Earnings on investments 11 , 993 398,479 4109472 389,649 20,823
Miscellaneous revenue 2631049 1 ,237,760 1 ,500,809 19148,270 3529539
Total Revenues 41020, 425 169413,079 201433, 504 23,999, 012 (3, 565,508)
EXPENDITURES
FTA Grants
2000 Operating - 328 , 152 328, 152 328, 152 2001 Operating - 165,522 165,522 175, 000 91478
2002 Operating 27,943 61374,493 6,402,436 61616, 065 213,629
2003 Operating 6,632 ,505 32 6,632, 537 71162 , 694 530, 157
2002 CMAQ Projects 19, 837 6233504 643,341 777,058 133,717
2003 CMAQ Projects 679, 138 978 680, 116 774, 919 94, 803
1997 Capital 203,498 29 ,891 233,389 248, 588 15, 199
1998 Capital 84,298 695,413 779,711 785, 126 5,415
1999 Capital 9,276 312,669 321 ,945 322 , 379 434
2000 Capital 909316 68,508 158,824 219, 643 60,819
2001 Capital 3,710 775, 095 778,805 925,412 146,607
2003 Capital 959774 - 95,774 ( 175, 125) (270,899)
1999 Planning 812 39, 187 39,999 40, 000 1
2000 Planning 11708 1265202 127,910 143, 042 159132
2001 Planning - - - 710000 71 ,000
Total Expenditures 7,8480815 %5391646 17,3881461 18,413,953 11025,492
Excess (Deficiency) of Revenues Over
(Under) Expenditures (3 , 828,390) 618730433 3,045,043 51585, 059 (29540, 016)
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of
long-term debt - 22,057 22,057 22,057
Transfers in
General Fund 41293,710 20,094, 633 24,388,343 24,388 ,343 -
Self Insurance Fund - 431 431 - 431
Transportation Services Fund - 9%690 90,690 140,690 (50,000)
Transfers out
Capital Projects Fund (80,590) (317899706) (3, 8700296) (61822, 224) 2,9511928
Total Other Financing Sources 4,2130120 16,418, 105 20, 631 ,225 17, 728,866 2 ,9029359
Excess of Revenues and Other
Sources Over Expenditures
and Other Uses 384, 730 $ 23,2911538 23,676,268 $ 23,3131925 $ 362,343
Fund Balances--January 1 626,422 626,422
Less Prior Years' Grant Revenues - (36,620,890)
Plus Prior Years' Grant Expenditures - 13,329,352
Fund Balances--December31 $ 1 ,011 , 152 $ 1 ,011 , 152
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 97
CEMETERIES FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
Actual Budget (Negative)
REVENUES
Fees and charges for services $ 358 , 901 $ 3%500 $ 21401
Earnings on investments 21086 500 1 ,586
Miscellaneous 10, 760 14,000 (31240)
Total Revenues 371 ,747 371 ,000 747
EXPENDITURES
Cemetery services 509 , 191 6569728 147, 537
Excess of Revenues Over
( Under) Expenditures ( 137;444) (285,728) 148, 284
OTHER FINANCING SOURCES
Transfers in
General Fund 1899467 1899467 -
Perpetual Care Fund 49 ,014 77, 000 27 ,986
Total Other Financing Sources 238 ,481 266,467 (27,986)
Excess of Revenues and Other
Sources Over (Under) Expenditures 101 ,037 $ ( 19 , 261 ) $ 120,298
Fund Balances--January 1 224, 768
Fund Balances--December 31 $ 325, 805
See the accompanying independent auditors' report.
98 City of Fort Collins
PERPETUAL CARE FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
Actual Budget ( Negative)
REVENUES
Fees and charges for services $ 55,851 $ 46 , 960 $ 8 ,891
Earnings on investments 409658 75 , 000 (34 ,342)
Net decrease in the fair value
of investments (71471 ) - (7 ,471
Total Revenues 89 ,038 121 ,960 (329922 )
EXPENDITURES
Other 682 682 -
Excess of Revenues Over
Expenditures 88 , 356 121 ,278 (32 , 922)
OTHER FINANCING USES
Transfers out
Cemeteries Fund (49,014 ) (77, 000) 27,986
Excess of Revenues Over ( Under) Expenditures
and Other Uses 397342 $ 44 ,278 $ (4 ,936)
Fund Balances--January 1 11232 ,214
Fund Balances--December31 $ 11271 ,556
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 99
EMERGENCY RECOVERY FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
REVENUES
Actual Basis Basis Budget (Negative)
-
Intergovernmental $ 105, 781 $ - $ 1059781 $ 105,781 $ _
Total Revenues 1� 0_ 5, 781w - 105, 781 105,781 _
EXPENDITURES
Emergency Recovery 6019940 - 601 ,940 515199965 41918,025
Excess (Deficiency) of Revenues Over
(Under) Expenditures (496, 159) - (496, 159) (5,414, 184) 41918 ,025
OTHER FINANCING SOURCES (USES)
Transfers in
General Fund 496, 159 215003000 21996 , 159 50000,000 (21003 , 841 )
Transfers out
General Fund ( 1 ,80%807) ( 150,000) ( I ,959,807) ( 1 , 960, 000) 193
Wastewater Fund (23,499) - (23,499) (23, 500) 1
Storm Water Fund ( 104, 020) (104,02O) ( 104, 100) 80
Total Other Financing Sources ( 1 , 441 , 167) 2, 350,000 908, 833 2 , 912,400 (210039567)
Excess (Deficiency) of Revenues and
Sources Over (Under) Expenditures
and Other Uses ( 119379326) $ 2,3509000 412, 674 $ 29501 , 784 $ 2, 914,458
Fund Balances--January 1 11937,326 11937,326
Less Prior Years' Grant Revenues (29500,000)
Plus Prior Years' Grant Expenditures - 150,000
Fund Balances--December 31 $ $
See the accompanying independent auditors' report.
100 City of Fort Collins
HOME INVESTMENT PARTNERSHIP GRANT FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES.-
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES - -
Intergovernmental $ 891 , 324 $ 767 , 770 $ 11659 , 094 $ 2,357,960 $ (698 , 866)
Earnings on investments 391508 46,013 85, 521 857521
Miscellaneous revenue 1392656 176, 878 316,534 604,550 (288, 016)
Total Revenues 1 ,070,488 990,661 23061 , 149 23962, 510 (901 ,361 )
EXPENDITURES
2000 Grant 250,000 287, 750 537,750 5371750
2001 Grant 127,441 698, 528 825, 969 834,000 81031
2002 Grant 6861657 62, 144 748 , 801 884 ,000 135, 199
2003 Grant 77 , 237 77 , 237 9263510 8499273
Total Expenditures 1 , 141 ,335 11048 ,422 2018%757 31182,260 992 ,503
Excess (Deficiency) of Revenues Over
(Under) Expenditures (70, 847) $ (57,761 ) ( 128,608) $ (219,750) $ 912142
Fund Balances--January 1 11392, 417 11392,417
Less Prior Years' Grant Revenues (990, 661 )
Plus Prior Years' Grant Expenditures 11048, 422
Fund Balances-- December 31 $ 11321 ,570 $ 11321 , 570
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 101
CAPITAL EXPANSION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON=GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Fees and charges for services $ 31778,414 $ 20,221 ,723 $ 24,000, 137 $ 22,213,600 $ 1 ,786,537
Earnings on investments 368,646 2,9081263 31276,909 31211 ,596 659313
Net increase (decrease) in the fair
value of investments (60,012) 58,205 (1 ,807) (11807)
Miscellaneous revenue 269,260 269,260 - 269,260
Total Revenues 4,087,048 23,457,451 2795449499 25,4259196 211199303
EXPENDITURES
Community Parkland Capital 71417 976, B26 984,243 989,300 5,057
Library Capital Expansion 41525 194,582 199, 107 250,000 509893
General Government Capital 359,800 3660450 726,250 828,952 102,702
Police Capital Expansion 246 246 - (246)
Fire Capital Expansion - 1 ,937,695 11937,695 1 ,937;343 (352)
Total Expenditures 3710742 31475,799 31847,541 410051595 158,054
Excess of Revenues Over
Expenditures 31715,306 19,981 ,652 23,696,956 21 ,4l %601 2/2773357
OTHER FINANCING USES
Transfers out
General Fund ( 142,577) (544, 164) (686,741 ) (8299319) 142,578
Capital Projects (19436,707) (3,246,012) (416820719) (51537,808) 855,089
Cultural Services Fund - (5,700� (5,700) (5,700)
Total Other Financing Uses (1 ,579,284) (3,795,876) (51375, 160) (61372 ,827) 9970667
Excess of Revenues Over
Expenditures and Other Uses 2, f36,022 $ 16, 185,776 18,321 ,798 $ 15,046,774 $ 31275, 024
Fund Balances--January 1 16,740,353 16,740,353
Less Prior Years' Project Revenues (2314579451 )
Plus Prior Years' Project Expenditures 71271 ,675
Fund Balances--December 31 $ 18, 876,375 $ 18,8761375
See the accompanying Independent auditors' report.
102 City of Fort Collins
OPEN LANDS FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES
Actual Budget (Negative)
- -
Intergovernmental $ 31198, 939 $ 31393 , 593 $ ( 194, 654)
Earnings on investments 589560 43,900 14, 660
Total Revenues 31257 ,499 3 ,437 , 493 ( 179, 994)
EXPENDITURES
Administration 47 , 996 109, 478 61 ,482
Capital outlay 70233, 087 8 ,415, 718 1 , 182 ,631
Total Expenditures 7,2811083 81525, 196 1 , 244, 113
Excess of Revenues Over (Under)
Expenditures (41023, 584) $ (5 , 087 , 703) $ 1 , 0643119
Fund Balances--January 1 51427,787
Fund Balances--December 31 $ 11404,203
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report f03
DEBT SERVICE FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES --
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
EXPENDITURES Actual Budget (Negative)
Principal $ 2 ,0601000 $ 2 ,2301000 $ 170 ,000
Interest 679 , 556 766 ,394 86 ,839
Bond issuance costs 147 , 710 160 ,000 12 ,290
Total Expenditures 27887,265 31156 ,394 2697129
OTHER FINANCING SOURCES (USES )
Proceeds from general long-term debt 5 ,8427930 51860 ,000 (17 ;070 )
Transfers in
Sales and Use Tax Fund 31666 , 528 3 ,666 ,528 -
Transportation Services Fund 354 ,573 354 ,573 -
Payments to refunded bond escrow agent (61965,000) (61981 ,545 ) 16 ,545
Total Other Financing Sources ( Uses) 21899 ,031 21899 , 556 (525 )
Excess Other Sources
Over (Under) Expenditures 111766 $ (256 ,838) $ 268 , 604
Fund Balances--January 1 -
Fund Balances--December 31 $ 11 , 766
See the accompanying independent auditors' report.
104 City of Fort CollIns
SPECIAL ASSESSMENTS FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES --
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES Actual Budget (Negative)
Earnings on investments $ 50596 $ 31300 $ 23296
Total Revenues 5 ,596 31300 21296
OTHER FINANCING USES
Transfers out
General Fund (49914 , 909 ) (4 ,914 ,909 ) -
Excess of Revenues Over (Under)
Other Financing Uses (4 ,909 ,313) $ (4 ,911 t609) $ 21296
Fund Balances--January 1 51586 ,662
Fund Balances--December 31 $ 6777349
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 105
FORT COLLINS LEASING CORPORATION FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
Actual Budget (Negative)
REVENUES
Earnings on investments $ 524 $ - $ 524
Miscellaneous revenue 351 , 701 351 , 701 -
Total Revenues 352 , 225 351 ,701 524
EXPENDITURES
Principal 794 , 188 7941188 -
Interest 835 ,877 11554 ,454 718 ,577
Other contractual costs 21150 2 ,200 50
Total Expenditures 11632 ,215 213507842 718 ,627
Excess (Deficiency) of Revenues Over
(Under) Expenditures ( 1 ,2791990)_ ( 1 , 999 , 141 ) 719, 151
OTHER FINANCING SOURCES
Transfers in
General Fund 367,630 368 ,203 (573 )
Capital Projects Fund 718 ,668 718 ,668 -
General Improvement District # 1 Fund 1461480 146 ,480 -
Total Other Financing Sources 112320778 11233,351 (573)
Excess of Revenues and Other Sources
Over (Under) Expenditures (47,212) $ 7657790 $ 718 ,578
Fund Balances--January 1 477212
Fund Balances--December 31 $ -
See the accompanying independent auditors' report.
106 City of Fort Ft. Collins
CAPITAL PROJECTS FUND
INDIVIDUAL FUND BUDGET SCHEDULE
Capital Projects Fund - to account for financial resources to be used for the acquisition or construction of major
capital facilities . Revenues and other financing sources are primarily derived from issuance of debt or transfers
from other funds .
Comprehensive Annual Financial Report 107
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Licenses and Permits $ 913314 $ 644,691 $ 736,005 $ 1 ,4101000 $ (673,995)
Intergovernmental 1 ,365, 714 7,775, 163 9, 140,877 121540,343 (31399 ,466)
Fees and charges for services 18,579 60,408 78, 987 83,981 (41994)
Earnings on investments 909, 174 10, 147,614 11 ,056 ,788 41084,262 619729526
Net increase (decrease) in the fair
value of investments (270t267) 519, 918 249,651 249,651
Miscellaneous revenue 5291689 8,320, 770 818507459 9 180 922 (330,463)
Total Revenues _ 2,644 ,203 27,468,564 30, 112,767 27,299,508 21813 259
EXPENDITURES
Major Repairs and Maintenance 37,815 37,815 640, 500 602, 685
Major Building Maintenance 749,970 6,0529524 6,8021494 91218, 568 25416, 074
Block 31 Maint. & Development 50,969 684,625 735,594 7929701 57, 107
Epic Second Ice Arena 11362,706 2,5141100 31876,806 4, 155,209 278,403
Operation Services Facility 25,945 11642 27,587 339, 174 311 ,587
Museum Entrance Reorientation 99,884 7,874 107,758 107,758
Streets Facility Expansion 163 382,811 382,974 1 , 122,500 7393526
Police Building/Land Acquisition 23,954 23,954 29,000 5 ,046
New Main Library/Land Acquisition 2,541 ,508 21541 ,508 2,8911597 3500089
Performing Arts Center/Land Acq. - 1 ,660r868 1 ,660,868 11900,090 239,222
Parking Structure 389682 10,9301008 10,968,690 110158,247 1893557
Office Building 33,942 114480, 328 11 ,514,270 11p704s443 1901173
Transit Center 56,039 29816,628 21872,667 21939,607 660940
Police Facility 41418 13,694 18, 112 1 ,833,323 1 ,815,2l l
Offsite Police Facility 7,010 851 , 940 858,950 881 , 100 22, 150
City Park Pool Renovation 11024,411 787,284 11811 ,695 11812,000 305
N. Side Aztlan Ctr Replacement 220351 22, 351 (22, 351 )
Traffic Operations Facility 179,010 19719,609 11898, 619 2 , i46,769 248, 150
CSU Transit Center 32,357 211850633 21217, 990 59080,037 21862,047
Downtown Railroad Track
Consolidation 101 , 244 211809419 2,281 ,663 21657,220 375,557
Pedestrian Accessibility 417, 574 3977752 815,326 19052, 191 236,865
Prospect, Poudre River/Summitview 640651 4276801 492,452 5,788,911 55296,459
Taft Hill, Drake Road to Derby 630047 4,9280448 4,9911495 6,034,694 1 J04311 99
Mason Street Transportation Corridor 1 ,253, 309 2,906,654 4, 1591963 4,7831258 623,295
Pedestrian Planning Bldg Comm Choices 186,796 2060565 3932361 1 ,020,811 6271450
Pavement Management Program BCC 7,034,037 91670,984 161705,021 16,9671352 262,331
Traffic Signal Timing System 1 ,632,976 2,808, 197 41441 , 173 5, 405,646 964,473
North College Corridor 2, 1499395 300, 819 21450,214 51441 ,222 21991 ,008
State Highway 14 Truck Route Relocation 11299 576, 794 578,093 31016,279 21438, 186
Timberline--Prospect to Summitview 3,000 81575,021 81578,021 816809155 102, 134
Street Oversizing Projects 2, 894,019 6999626 315932645 71014,389 3,4201744
Minor Street Capital Projects 399,582 5379970 9371552 11265,759 328,207
North Lemay Redesign - - 16,350 16,350
Prospect/College intersection 146 1 ,052,897 1 ,0531043 11095 , f31 42,088
Coventry Dev Wildlife Habitat - 91000 9,000
BCC Northside Azatlan Comm. Ctr. Rpl . (16,317) 16,317 100,000 100,000
City/School District Community Proj. 490,666 490,666 689,680 199,014
See the accompanying independent auditors' report.
(Continued on Next Page)
108 City of Fort Collins
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
ACTUAL AND BUDGET ( NOWGAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
(Continued)
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis B et (No a
Library Technology - 75, �- ud live 1
Gateway Park 13, 852 1 ,350,853 113649705 133902000 25,295
Downtown Intersection Renovation 136, 483 903, 110 11039 ,593 1 ,312 ,355 272,762
Downtown Civic Center Improvements 427,630 551 , 550 979 , 180 11842,551 863,371
Harmony & Timberline Widening 269554 31010,611 3,037, 165 39414,276 377, 111
Timberline & Drake Roadway 80235 3, 105,235 3, 113,470 3,223,712 110,242
Kechter Road Improvements 51223 21469,744 204749967 4,544,750 21069,783
Recreation Trails West of Taft Hill 826 5969943 597,769 697,000 99,231
Trails and Open Space Acquisitions 40,655 40,655 50r000 91345
1 /4 Cent Natural Areas (40922) 18,274,568 180269,646 18, 274, 568 41922
BCC Natural Areas 2,241 ,895 109215,945 12,457,840 173112,698 4,654,858
Community Horticulture Center 1 ,959,375 511 ,912 2,471 , 287 2,7421057 270,770
Fossil Creek Community Park 3,893,906 512162199 911102105 91662, 153 552 ,048
Soft Gold Park 73, 761 31 ,904 105,665 1p007,400 901 ,735
BCC Community Park Improvements 2410694 241 ,694 544,550 302,856
Regional Trails 23, 572 23,572 11678,418 1 ,654,846
Sheldon Lake Improvements and Boardwalk 118,005 96, 165 214, 170 340,000 125,830
Webster Park 11210, 994 2,078,695 31289,689 3,975 ,493 685,804
Administrative charges 198 109 198 109 198, 109
Total Expenditures � -fir
Excess (Deficiency) of Revenues Over
(Under) Expenditures (28,075 ,235) ( 103,0151792} 1310091 ,027) ( I78,293,316) 47,2021289
OTHER FINANCING SOURCES
(USES)
Proceeds from issuance of long term
debt - 19,647,259 19r647, 259 19,644, 153 31106
Transfers in
General Fund 5,776,303 111971 , 176 17,7471479 22,531 ,634 (4,784, 155)
Capital Expansion Fund 1 ,436,708 31246,010 4r6821718 57537,808 (8550090)
Neighborhood Parkland Fund 22, 229 159,640 181 ,869 313,220 ( 131 ,351 )
Conservation Trust Fund 210,000 210,000 110109000 (800,000)
Transit Services Fund 80,590 3/7899706 31870,296 6,822,224 (21951 ,928)
Open Lands Fund 2102000 2109000 210,000
Street Oversizing Fund 3,658,626 7,080,700 10,739,326 14,7799767 (4,0401441 )
General Improvement District No. 1 162,355 162,355 1620355 -
Sales and Use Tax Fund 17,029,907 9105419507 108,571 ,414 105,897, 149 216740265
Transportation Services Fund 201 ,605 1 , 158,308 1 ,35%913 21424,636 ( 1 ,064,723)
Recreation Fund - 1801000 180,000 1809000
Equipment Fund 13,049 11642 14,691 315,688 (300,997)
Communications Fund 62,000 62,000 62,000
Utilities Customer Service Admin Fund 10,000 107000 103000 -
Cultural Services Fund 21 ,705 21 ,705 21 ,758 (53)
Transfers out
Debt Service Fund (718,668) -
Conservation Trust Fund (2353000) (235,000) ( (35,000) (200,000)
Cultural Services and Facilities Fund ( 109,217) (746, 125) (8551342) (8759408) 20,066
Total Other Financing Sources (Uses) 27,412,837 138,449, 178 165,862,015 1781293,316 ( 12, 431 ,301 )
Excess (Deficiency) of Revenues and Other
Sources Over (Under) Expenditures
and Other Uses (662,398) $ 35,433,386 34,770, 988 $ $ 34,770,988
Fund Balances--January 1 351580,274 35,580, 274
Less Prior Years' Project Revenues ( 166,898, 867)
Plus Prior Years' Project Expenditures 131 ,465, 481
Fund Balances--December 31 $ 34,917, 876 $ 34,917,876
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 109
THIS PAGE LEFT BLANK INTENTIONALLY,
110 City of Fort Collins
NON-MAJOR ENTERPRISE FUND - GOLF
INDIVIDUAL FUND BUDGET SCHEDULE
Golf -- to account for operations of all City golf courses .
Comprehensive Annual Financial Report 111
THIS PAGE LEFT BLANK INTENTIONALLY.
112 City Of Fort Collins
GOLF FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET (NOWGAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
REVENUES Actual Basis Basis Budget (Negative)
Charges for services $ 2,206,937 $ - $ 2,206,937 $ 20250,200 $ (43,263)
Other nonoperatiing income 689509 - 68,509 68,000 509
Earnings on investments 10,032 10,032 201 ,093 ( 191 ,061 )
Transfers in 16,773 - 16,773 16,773
Proceeds from lease obligations 21995,708 29995,708 2,995,708 -
Proceeds from issuance of COPS 21215,000 2,215, 000 21215, 000
Total Revenues 2,3021251 51210,708 71512,959 7,746,774 233, 815
EXPENDITURES
Programs (project level of
budgetary control)
Golf courses 210851122 482, 275 2,567,397 2,603, 107 35,710
Transfers out 51720 - 51720 5,720
Bond amortization 41344 (41344)
Depreciation 261 , 170 (261 , 170)
Total Programs 2,356,356 216,761 29573, 117 2,6081827 35,710
Projects (project level of
budgetary control)
Golf projects-'99 COPS 12, 108 12, 108 12, i15 7
Collindale Irrigation Project I ,603,555 1 ,603,555 1 ,603,555 -
Southridge Improvement Project - 419,833 4199833 419,833
City Park Nine Improvements - 71 , 578 71 ,578 71 ,578
Collindale Clubhouse Project - 260,251 260,251 260,251 -
Collindale Clubhouse ALPS 21268,678 2,268,878 212739732 4,854
ALPS Admin/Contingency 32,800 32,800 33,800 11000
Collindale Sidewalk Net - 157,652 157,652 165,000 7,348
Southridge Cart Storage - 1939682 193,682 193,682
City Park Nine Projects 120,840 1209840 120,840
Southridge Projects 79,387 79, 387 82,644 3,257
ALPS - Collindale Projects - 9,934 91934 91934 -
Total Projects 51230,498 5,230,498 5,2461964 16,466
Total Expenses 21356,356 5,4479259 71803,615 7,855,791 52, 176
Change in Net Assets (54, 105) $ (236,551 ) (290l656) $ (1090017) $ (181 ,639)
Net Assets--January 1 41931 , 435 41931 ,435
Current year's proceeds from lease ( 165,708)
Prior years' proceeds from lease (2,830,000)
Prior years' proceeds from COPs - (21215,000)
Capital outlay 137,337
Current year's project expenditures 354,052
Prior years' project expenditures 41876,446
Principal reduction--capital lease - 177, 126
Principal reduction--bonds - 167,812
Bond amortization (4,344)
Depreciation - 261 , 170
Net Assets--December 31 $ 4, 877, 330 $ 49877,330
See the accompanying independent auditors' report
Comprehensive Annual Rrnancial Report 113
THIS PAGE LEFT BLANK INTENTIONALLY,
114 City of Fort Collins
MAJOR ENTERPRISE FUNDS
INDIVIDUAL FUND BUDGET SCHEDULES
Light and Power -- to account for operation of the City's electric utility.
Water -- to account for the operation of the City's water utility.
Wastewater -- to account for the operation of the City's wastewater utility.
Storm Drainage -- to account for the City's storm water utility.
Comprehensive Annual Financial Report 115
THIS PAGE LEFT BLANK INTENTIONALLY,
116 City of Fort Collins
LIGHT AND POWER FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
REVENUES Actual Basis Basis Budget (Negative)
Charges for services $ 69,234,638 $ $ 69,234,638 $ 70,258, 108 $ (l y0237470)
Other nonoperating income 1 ,940,212 199402212 11882,507 57,705
Earnings on investments 891 ,904 891 ,904 9777500 (85,596)
Net decrease in the fair value
of investments (297*726) (297,726) (297,726)
Transfers in 195,500 195 ,500 195,500
Loss on sale of capital assets (58,719) (58,719) (58,719)
Contributed capital 3,885,838 3,8853838 31960,892 (75,054)
Total Revenues 75,791 ,647 75,791 ,647 772274,507 (11482,860)
EXPENDITURES
Programs (fund level of
budgetary control)
Customer / admin services 51381 ,963 5,3811963 60172,535 7902572
System additions 109018,950 10,0181950 16,255,831 61236,881
Light and Power operations 40779,745 4,779,745 61407,201 1 ,627,456
Fund transfers 51342,593 53342,593 5, 1460835 (1950758)
Purchase of power 48,524,782 489524,782 53,7510739 5,2260957
Depreciation 71063,593 71063,593 -
Total Expenses-- Programs 71 ,0921676 2,9550357 74,0482033 87,7340141 13,686, 108
Change in Net Assets 4,698,971 $ (2,9551357) 11743,614 $(10,459,634) $ 12,2031248
Net Assets--January 1 125,081 ,515 125,081 ,515
Capital outlay--programs 109018,950
Depreciation (7,0631593)
Net Assets--December 31 $ 129,7801486 $ 129,7801486
See the accompanying independent auditors' report
Comprehensive Annual Financial Report 117
WATER FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET ( NON=GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
REVENUES Actual Basis Basis Budget (Negative)
Charges for services pledged for debt service $ 22,3075739 $ $ 22,3071739 $ 22,279,845 $ 27,894
Other nonoperating income 598, 670 5989670 574,516 24, 154
Earnings on investments 960, 218 960,218 750,000 210,218
Net decrease in the fair
value of investments (244,015) (244,015) 0
Gain on sale of capital assets 6 172 6 172 - (246, 72)
Contributed capital 71232,060 7, 2329060 49875, 646 21356,414
Proceeds from issuance of long term debt 1 ,500, 000 ( 1 ,5002000)
Total Revenues 30, 8601844 30,860, 844 29,9809007 880, 837
EXPENDITURES
Programs (fund level of budgetary control)
Customer services, administration, resources 21781 ,322 100, 157 2,881 ,479 315719115 689,636
Transmission and distribution 19753,044 1 ,0121850 2,765, 894 218599957 94,063
Water Fund payments and transfers 49758,655 4,941 ,759 91700,414 121432,334 21731 ,920
Water production 3,0237200 3271253 31350,453 41771 ,412 12420,959
Water quality 1 ,015,874 41 , 161 1 ,057,035 17401 ,329 344,294
Water resources 1 p970t537 1 ,970,537 21528,067 557,530
Bond and lease amortization 46, 751 (462751 )
Depreciation 41996,089 4,9961089
Total Programs 20,345,472 1 ,380,340 21 ,725 ,812 27,564, 214 51838,402
Projects (project level of budgetary control)
Service Center Improvements 2 ,269, 316 2,269,316 3,897, 766 1 ,628,450
Harmony Transmission Line 11471 , 039 1 ,471 ,039 1 ,912,777 441 , 738
Automated Mapping 593, 927 593,927 6000000 61073
Meter Conversion Program 21282, 618 2,282,618 4,3460588 2,0639970
Water Supply Development 808,485 8089485 1 ,482 ,203 673,718
Southwest System Improvements 946,700 946,700 1 t960,000 110130300
Master Plan Facilities 47,979 ,065 47,979,065 49,633,910 11654r845
Water Conservation Research Study 312,800 312,800 420,000 107,200
South Taft Hill Road Waterline 171 , 187 171 , 187 190,000 18,813
Water Quality Lab 92,029 92, 029 350,000 2571971
Cathodic Protection 1 ,4673019 11467,019 1 ,670 ,000 202,981
Halligan Reservoir Enlargement 91000 9,000 20,000 11 ,000
Discovery Center Science Museum 175,500 1752500 7,077,000 6, 901 ,500
Gravel Pit Storage Ponds 619,969 619, 969 11127,000 507,031
Treatment Facility Improvement 135 , 146 135 , 146 110000000 864 ,854
Poudre Pipeline 189 ,596 1891596 190,000 404
Total Projects 59, 523,396 59,523 ,396 75,877, 244 16,3531848
Total Expenses 201345,472 601903,736 81 ,249,208 103,441 ,458 22 , 192,250
Change In Net Assets 10,5151372 $ (60,903,736) (50,3889364) $(73,461 ,451 ) $ 23 ,073,087
Net Assets--January 1 161 , 123, 120 161 , 123, 120
Capital outlay--programs/leased equipment - 1 r481 ,421
Current Year's Project Expenditures 161177,584
Prior Years' Project Expenditures 43,3451612
Principal Reduction--Long-Term Debt 4,8711636
Principal Reduction--Capital Lease Obligations 70, 123
Depreciation (41996,089)
Bond Amortization (46,751 )
Net Assets-- Decembe r 31 $171 ,638,492 $171 ,638,492
See the accompanying independent auditors' report
18 City of Fort Collins
MENOMINEE
WASTEWATER FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET (NON=GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
REVENUES Actual Basis Basis Budget (Negative)
Charges for services pledged for debt service $ 12,221 ,993 $ $ 12,221 ,993 $ 12,5572061 $ (335,068)
Other nonoperating income 746, 568 746568 976 ,862 (230,294)
Earnings on investments 1 ,0543584 11054,584 750,000 304, 584
Net decrease in the fair value
of investments (220,723) (220r723) (220,723)
Transfers in 23,499 239499 23,500 (1 )
Gain on sale of land to General Fund 807,331 807,331 2,540,000 ( 1 ,732,669)
Gain on sale of capital asset 19 ,855 19,855 - 191855
Contributed capital _ 2,4551459 _ 21455,459 2,609,528 ( 154,069)
Total Revenues _ 17, 108,566 17, 1081566 _ 1 %456, 951 (2,348 ,385)
EXPENDITURES
Programs (fund level of budgetary control)
Customer services/administration 1 ,438, 443 11438,443 1 ,820,814 3827371
Trunk and collection 11045,857 9393651 11985,508 21424,691 439, 183
Payments and transfers 31952,516 5 ,4479004 9, 399,520 10, 192,884 793,364
Water reclamation 3,758, 115 500,464 4, 2581579 5, 1479989 889, 410
Pollution control 1 ,000,799 22,235 11023, 034 112249453 201 , 419
Depreciation 2,564,767 (2,564,767)
Bond amortization 96, 131 (96, 131 )
Total Programs 13, 8567628 4,248 ,456 18, 105,084 20^ 81�g3� 2,7052747
Projects (project level of budgetary control)
Harmony Lift Station 11364,533 1 ,364,533 21269,000 904,467
Service Center Improvements 2,038, 173 2,038 , 173 3, 192, 199 11154,026
Treatment Plant Expansion 291097,516 29,097,516 32,654,034 31556,518
Sludge Disposal Improvements 31606,290 3,6061290 4,519,446 913, 156
Pollution Lab Improvements 542, 447 542,447 796,090 2531643
Collection System Study - 364, 659 364,659 450,000 853341
Automated Mapping - 588, 999 5880999 6007000 11 , 001
Mulberry Water Reclamation Improvements - 416839188 4,683, 188 5,690,849 1 ,007, 661
Flow Monitoring Stations - 98,489 98,489 740,000 641 , 511
North College Sewer 1850903 185,903 400,000 214,097
Computer System Enhancements - 1300000 130,000
Locust Street and Riverside 1 J901586 _ 11790,586 1 ,850,000 59,414
Total Projects 44#3602783 44360L783 53,291 ,618 8, 930835
Total Expenses 13, 8569628 48, 609 ,239 62 ,4650867 74 , 102,449 _ 111636,582
Change in Net Assets 3,251 ,938 $ (48, 609,2391 (45,357,301 ) $ (54 ,645,498) $ 9, 288, 197
Net Assets--January t 90,778, 124 90,778, 124
Capital Outlay--Programs 11462 ,350
Current Years Project Expenditures 1 ,462 ,854
Prior Years ' Project Expenditures 42p897,929
Principal Reduction - Long Term Debt 5,4471004
Depreciation (2, 564,767)
Bond amortization (96, 131 )
Net Assets-December 31 $ 941030,062 $ 94� 030 0j 62
See the accompanying independent auditors' report
Comprehensive Annual Financial Report 119
STORM DRAINAGE FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET ( NON -GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Charges for services pledged for
debt service $ 11 , 197 ,803 $ $ 11 , 197, 803 $ 11 , 1930665 $ 4 , 138
Other nonoperating income 11 ,720 719974 83,694 112,500 (28,806)
Earnings on investments 936, 111 936, 111 300,000 636, 111
Net decrease in the fair value
of investments (76,070 ) (769070) (76,070)
Transfers in 1040020 - 104,020 1041100 (80 )
Contributed capital 764 ,455 7641455 7687000 (3,545)
Total Revenues 12 ,938 ,039 71 ,974 13 ,010 ,013 12,478 ,265 531 ,748
EXPENDITURES
Programs (fund level of budgetary control)
Customer and administrative services 967, 073 - 967 ,073 1 , 138,012 1700939
Drainage and detention 11062, 373 111220676 2, 185 ,049 21628 ,414 443,365
Drainage water quality 225,376 - 225 ,376 366 ,567 141 , 191
Storm Drainage Fund
payments and transfers 2 ,680,630 21178,604 4,859,234 51228, 102 368,868
Bond and lease amortization 52, 103 (528103) -
Depreciation 11915,677 ( 1 ,9152677) -
Total Programs 61903 ,232 19333�500 81236,732 9,361 ,095 17124 ,363
Projects (project level of budgetary control)
Old Town Basin - 16,586,024 1695869024 16,969,961 383 ,937
Spring Creek Basin - 11628,014 11628,014 21904, 501 11276 ,487
Foothills Basin 1 /3413272 11341 ,272 11350,000 8 ,728
Canal Importation Basin 71793,433 71793 ,433 129549, 513 49756 ,080
Fossil Creek Basin 6609000 660, 000 660, 000 -
Cache LaPoudre Drainageway 390,455 390,455 383, 051 (7 ,404)
Master Plan 315720536 31572, 536 31655, 000 82 ,464
Flood Mapping 382,380 382,380 581 , 913 199,533
Developer Repays 11115,894 11115,894 1 ,2001000 847106
Computer System Enhancements 1309000 130,000
Floodproofing 181162 18, 162 60,000 417838
Dry Creek Flood Diversion 395,305 395,305 11400,000 1 , 004,695
Total Projects 3378837475 33,883 ,475 41 ,8437939 79960,464
Total Expenses 61903,232 351216 ,975 42, 120,207 513205,034 99084,827
Change in Net Assets 61034,807 $ (35, 145 ,001 y (29, 1101194) $ (38 ,726 ,769) $ 9,616,575
Net Assets-January 1 35, 174,670 35, 174,670
Capital outlay-programs 10130 ,246
Current year's project expenditures 7 ,769,404
Prior years' project expenditures 26, 1141071
Prior years' grant revenue - (71 ,974)
Principal reduction - tong term debt - 20162,500
Principal reduction - capital lease obligations 81534
Depreciation ( 1 ,915,677)
Bond amortization (52, 103)
Net Assets-December 31 $ 41 ,209,477 $ 41 ,209,477
See the accompanying independent auditors' report
120 City of Fort Collins
INTERNAL SERVICE FUNDS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Benefits - - to account for the self- insurance of employee health care benefits and other benefits provided to
City employees .
Communications -- to account for the acquisition , operation , and maintenance , of the City's telephone
system , office automation system , and network backbone , as well as the provision of computer application
services .
Equipment -- to account for the fleet services provided to other funds of the City.
Self-insurance - - to account for self- insurance of property and liability claims .
Utility Customer Service and Administration - - to account for customer and administrative services
provided to the City' s utility funds .
Comprehensive Annual Financial Report 121
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
DECEMBER 31 , 2003
ASSETS Benefits Communications Equipment
Current Assets
Cash and cash equivalents $ 1 , 168,624 $ 11301 ,533 $ 1 ,514,893
Investments 3, 5329160 - 506 ,220
Receivables
Accounts - 11161 14,879
Accrued interest 279626 - 51076
Inventories of materials and supplies 29,355 450, 748
Total Current Assets 41728,410 113322049 2,4911816
Capital Assets
Property and equipment - 11802 ,949 212309317
Accumulated depreciation - ( 1 ,248, 131 ) (964,488)
Construction in Progress - - 311 ,331
Total Capital Assets
p 554, 818 1 ,577, 160
Total Assets 417280410 1 ,886, 867 4,068, 976
LIABILITIES
Current Liabilities
Accounts payable 31828 169561 122 , 588
Accrued interest payable - - 11058
Accrued wages payable 27,386 7,825 54,923
Accrued compensated absences 13,944 23, 859 56,982
Claims payable 1 *425,000
Capital lease obligations - - 108,700
Total Current Liabilities 17470, 158 48, 245 344,251
Long-term Liabilities
Accrued compensated absences 734 1 , 256 21999
Claims payable
Capital lease obligations - - 809197
Total Long-term Liabilities 734 1 ,256 83, 196
Total Liabilities 11470,892 49,501 427,447
NET ASSETS
Invested in Capital Assets , net of related debt - 5543818 1 ,388, 263
Unrestricted 31257 ,518 1 ,282, 548 2,253, 266
Total Net Assets $ 3; 257, 518 $ 1 ,837,366 $ 3,641 , 529
See the accompanying independent auditors' report.
122 City of Fort Collins
Self- Utility Customer
Insurance Service and Admin Total
$ 2, 111 , 197 $ 11653, 743 $ 7,749,990
7/ 7589256 - 11 , 796, 636
51975 22, 015
92 ,385 - 125, 087
480 , 103
9, 9619838 1 ,659, 718 200173,831
19360,729 593939995
(316,887) (21529,506)
241 ,327 552, 658
11285, 169 3,4179147
9,961 ,838 21944, 887 23, 590,978
269095 104,791 2737863
1 ,058
71826 161 , 196 2599156
69112 285,225 386, 122
116887410 3, 113,410
1089700
117281443 551 ,212 491429309
5,962 33,364 44,315
5,703,278 - 5,703,278
80, 197
51709 , 240 339364 5,8270790
7 ,4379683 584,576 9,9700099
1 ,285, 169 312287250
215243155 . 19075, 142 10,3927629
$ 2 , 5249155 $ 2,360,311 $ 130620,879
Comprehensive Annual Financial Report 123
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES , EXPENSES
AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31 , 2003
Benefits Communications Equipment
OPERATING REVENUES
Charges for services $ 12 ,985 , 398 $ 11616,580 $ 5 ,821 ,767
OPERATING EXPENSES
Personal services 421 ,034 333 , 782 21295 ,356
Contractual services 13 ,6841624 743 ,533 13053 ,589
Commodities 39,263 204 ,583 21154 ,409
Other 529 21500 21992
Depreciation - 176 , 501 108 ,442
Total Operating Expenses 14, 145 ,450 17460 ,899 51614 ,788
Operating Income (Loss) (13160,052) 1552681 2061979
NONOPERATING REVENUES (EXPENSES)
Earnings on investments 100 , 195 12 ,561 40 ,430
Net -decrease in the fair value of investments ( 15 ,524) - (16 , 595)
Other revenue 65, 124 11659 10 ,309
Interest expense - - ( 12 ,413 )
Total Nonoperating Revenues (Expenses ) 149 ,795 14 ,220 219731
Income (Loss) Before Transfers (11010, 257) 169,901 228 , 710
Transfers
Transfers out - - (18 , 929 )
Change in Net Assets (1 ,010 ,257) 169 ,901 209 , 781
Net Assets--JanuaryI Restated 4 ,267,775 11667 ,465 31431 , 748
Net Assets--December 31 $ 3 ,257, 518 $ 118373366 $ 31641 ,529
See the accompanying independent auditors' report.
124 City of Fort Collins
Self- Utility Customer
Insurance Service and Admin Total
$ 11637, 254 $ 10, 015, 054 $ 32,076,053
352, 002 61651 ,220 10, 053,394
31564,587 29353, 036 21 ,399,369
93,294 525, 999 39017,548
11000 227,941 234,962
166,867 451 ,810
41010,883 9, 925, 063 35, 157,083
(2,373,629) 89,991 31081 ,030
353, 350 24,643 531 , 179
( 124, 345) - ( 156,464)
64,817 49,344 1919253
( 12,413)
293,822 73,987 553,555
(210799807) 163, 978 (21527,475)
( 1 ,006,200) 1046,500 (1 , 0612629)
(31086, 007) 1273478 (3,589, 104)
5,610, 162 21232,833 . 17,209,983
$ 20524, 155 $ 2,360, 311 $ 13,620,879
Comprehensive Annual Financial Report 125
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31 , 2003
Benefits Communications Equipment
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers and users $ 13,016,283 $ 19615,696 $ 53822, 515
Cash paid to employees for services (4212823) (326,813) (21289,432)
Cash paid to other suppliers of goods & services ( 13,9759897) (9679882) (3, 157,426)
Other revenues 65, 124 11659 16, 189
Net cash provided (used) by operating activities (1 ,316,313) 3229660 391 ,846
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds - ( 18, 929) 1
Net cash (used) by noncapitat
financing activities (18 ,929)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchases of capital assets _ _ 7 720
Acquisition and construction of capital assets - - (3110331 )
Principal paid on capital debt - - (122,823)
Interest paid on capital debt - ( 13, 113)
Proceeds from sales of capital assets - - 230,000
Net cash (used) by capital
and related financing activities - - (224, 987)
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sales and maturities of
investments 105257930 - -
Purchase of investments (31032,989) -
Earnings received on investments 100, 195 12,561 40, 430
Net cash provided (used) by
investing activities ( 1 ,406, 864) 12, 561 40,430
Net increase (decrease) in cash and
cash equivalents (217231177) 335,221 168,360
Cash and cash equivalents, January 1 3,891 ,801 966,312 1 ,326,533
Cash and cash equivalents , December31 $ 1 , 168,624 $ 1 ,3011533 $ 1 , 5141893
Reconciliation of operating income to
net cash provided (used) by operating
activities :
Operating income (loss) $ ( 11160,052) $ 155,681 $ 201 ,099
Other revenues 65, 124 1 ,659 16, 189
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation expense - 176,501 1089442
(Increase) decrease in accounts receivable 30,885 (884) 748
(Increase) decrease in inventories - 21633 55,891
Increase (decrease) in accounts payable (10,855) (19)899) 31553
Increase (decrease) in accrued
compensated absences payable (62453) 1 , 147 981
Increase (decrease) in accrued wages 59664 51822 4,943
Increase (decrease) in claims payable 2403626 -Net cash provided ( used) by operating activities _A1 ,316, 313) 3227660 391 ,846
Noncash investing, capital , and financing
activities :
Decrease in fair value of investments ( 15, 524) - ( 16,595)
See the accompanying independent auditors' report
126 City of Fort Collins
Self Utility Customer
Insurance Service and Admin Total
$ 11637,254 $ 10,009, 271 $ 32, 101 , 019
(357,412) (69627,704) ( 10 ,023, 184)
(21384,403) (31125, 109) (23,610, 717)
64,817 499344 197, 133
(1 ,039,744) 305,802 ( 11335, 749)
(1 ,006,200) (36, 500) ( 11061 , 629)
110063200 (36,500) ( 1 ,061 ,629)
(527,086) (534,806)
(3117331 )
( 122,823)
( 13, 113)
2301000
527, 086 (7529073)
57992,384 - 7 , 518,314
(69415,306) - (9,448,295)
382 ,395 24,643 560, 224
(40, 527) 24, 643 (11369 , 757)
(2,0861471 ) (233, 141 ) (41519 ,208)
4, 197, 668 11886,884 12,26% 198
$ 21111 , 197 $ 1 ,653, 743 $ 717493990
$ (21373,629) $ 89, 991 $ (31086 ,910)
649817 49,344 197, 133
1660867 451 ,810
(5 ,783) 24,966
58,524
11 , 174 ( 18, 133) (34, 160)
(5, 168) (696) ( 109189)
(242) 249212 40,399
1 ,263, 304 - l p022$ 678
( 110392744) 3051802 $ ( 113359749)
( 124, 345) ( 156, 464)
Comprehensive Annual Rnandal Report f27
BENEFITS FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
Actual Budget (Negative)
REVENUES
Charges for services $ 12 ,985 , 398 $ 137474 ,237 $ (4889839)
Other nonoperating income 65 , 124 57 ,400 71724
Earnings on investments 100 , 195 135 ,000 (34 ,805)
Net decrease in the fair value
of investments ( 151524)_ - (151524)
Total Revenues 13 , 135, 193 13 ,666 , 637 (531 ,444 )
EXPENSES
Benefits 14 , 145 ,450 15 ,857, 647 11712 J 97
Change in Net Assets (1 ,0107257) $ (2 , 191 ,010) $ 1 , 180, 753
NetAssets--January 1 , Restated 49267,775
Net Assets--December 31 $ 312577518
See the accompanying independent auditors' report.
128 City of Fort Collins
COMMUNICATIONS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Charges for services $ 1 ,616, 580 $ - $ 11616 ,580 $ 1 , 478, 000 $ 138, 580
Other nonoperating income 11659 11659 50 11609
Earnings on investments 12 , 561 - 12 , 561 10,000 21561
Total Revenues 196303800 11630/800 11488, 050 142 , 750
EXPENDITURES
CITEL 1 ,284,398 1 , 284 , 398 11615,814 331 ,416
Depreciation 176,501 ( 176, 501 )
Total Expenses 1 , 460, 899 ( 176 , 501 ) 17284 , 398 11615 , 814 331 , 416
Change in Net Assets 1693901 $ 1769501 3467402 $ ( 127,764) $ 4749166
Net Assets--January 1 11667,465 11667,465
Depreciation - ( 176,501 )
Net Assets-- December 31 $ 1 ,837,366 $ 11837 , 366
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 129
EQUIPMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET ( NON- GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Charges for services $ 5, 821 ,767 $ - $ 53821 ,767 $ 51950, 714 $ ( 128 , 947)
Other nonoperating income 10 , 309 - 10, 309 490, 840 (480 ,531 )
Earnings on investments 40 ,430 40, 430 30 ,000 10,430
Net decrease in the fair value
of investments 169595 - ( 16, 595 ) - ( 169595)
Total Revenues 51855, 911 - 518555911 61471 , 554 (615 , 643)
EXPENDITURES
Fleet services 5,537, 688 447 , 754 5 ,985,442 79952 , 859 11967,417
Depreciation 108 ,442 ( 108 ,442) -
Total Expenses 51646, 130 339,312 5 ,985,442 7,9527859 1 , 967, 417
Change in Net Assets 209, 781 $ (339, 312) ( 1299531 ) $ ( 1 ,481 , 305) $ 11351 , 774
Net Assets- -January 1 3,4319748 3,4317748
Capital outlay--program 3247931
Principal reduction --capital lease - 122 , 823
Depreciation - ( 108, 442)
Net Assets-- December 31 $ 3 ,6411529 $ 31641 , 529
See the accompanying independent auditors' report.
130 City of Fort Collins
SELF-INSURANCE FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES Actual Budget (Negative)
Charges for services $ 1 ,6373254 $ 116307000 $ 71254
Other nonoperating income 649817 64, 817
Earnings on investments 353,350 3002000 539350
Net decrease in the fair value
of investments ( 124, 345) ( 124 ,345)
Total Revenues 1 ,931 ,076 1 ,930, 000 1 , 076
OPERATING EXPENSES
Risk management 51017,083 4,389 ,398 (627, 685)
Change in Net Assets (31086, 007) $ (2,459,398) $ (626, 609)
Net Assets--January 1 51610, 162
Net Assets--December 31 $ 2 , 524, 155
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 131
UTILITY CUSTOMER SERVICE AND ADMINISTRATIVE FUND
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN NET ASSETS
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance with
Adjustment Actual Actual On
To On Budgetary Basis
Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
REVENUES
Charges for services $ 10 , 015,054 $ $ 101015, 054 $ 11 ,378, 977 $ ( 11363, 923)
Other nonoperating income 49 ,344 - 49, 344 24,293 25,051
Earnings on investments 24 ,643 - 24, 643 50, 000 25,357
Total Revenues 10,089,041 10, 0893041 119453, 270 ( 11364 ,229)
EXPENDITURES
Customer and administrative services 99794,696 527 ,086 10,321 , 782 13 ,296 ,294 21974, 512
Depreciation 166,867 ( 166 , 867) - -
Total Expenses 91961 , 563 360,219 10 ,321 , 782 13,2969294 2 , 974,512
Change in Net Assets 127, 478 $ (360, 219) (232,741 ) $ ( 11843,024) $ 11610, 283
Net Assets- -January 1 21232 ,833 212329833
Capital outlay - 527,086
Depreciation (166,867)
Net Assets-- December 31 $ 2 ,360 ,311 $ 2, 360, 311
See the accompanying independent auditors' report.
132 City of Fort Collins
FIDUCIARY FUNDS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Trust Funds :
General Employees' Retirement Plan -- to account for the general employees' retirement plan.
Money Purchase Plan -- to account for City employees' defined contribution retirement plan .
Agency Funds :
Poudre Fire Authority -- to account for cash and investments held by the City on behalf of Poudre Fire Authority.
Fort Collins - Loveland Airport -- to account for cash and investments held by the City on behalf of the Fort
Collins - Loveland Airport.
Comprehensive Annual Financial Report 133
THIS PAGE LEFT BLANK INTENTIONALLY.
134 City of Fort Collins
TRUSTFUNDS
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
DECEMBER 31 , 2003
General
Employees Money Total
Retirement Purchase Trust
Plan Plan Funds
ASSETS
Current Assets
Cash and cash equivalents $ 107305 ,832 $ - $ 10 ,3D5 , 832
Receivables
Interest 79 ,953 - 79 ,953
Notes and loans - 1 ,515 , 145 11515 , 145
Total Receivables 79 ,953 11515 , 145 1 / 5957098
Investments , at fair value
U S Government securities 31413,697 - 31413 ,697
Corporate bonds 11825,453 - 1 ,825,453
Mutual funds 18 ,483 ,472 70 , 574,245 899057r717
Total Investments , at fair value 23 , 722 ,622 70 ,5741245 94,296 , 867
Total Assets 341108 ,407 72 ,089 ,390 106 , 197, 797
LIABILITIES
Current Liabilities
Accrued expenses 1 ,075 - 11075
Total Liabilities 11075 - 11075
NET ASSETS
Held in trust for pension benefits 343107 ,332 727089 , 39D 106 , 1967722
Total Net Assets $ 34 ; 107,332 $ 721089 ,390 3 1061196 ,722
See the accompanying independent auditors' report.
Comprehensive Annual Rnanclal Report 135
TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FOR THE YEAR ENDED DECEMBER 31 , 2003
General
Employees Money
Retirement Purchase
Plan Plan Total
ADDITIONS
Contributions
Employer contributions $ 11063 , 786 $ 3 ,637 , 949 $ 4 ,701 , 735
Employee contributions - 213240369 2 ,3241369
Pension conversion & roll-overs - 390 , 853 390 ,853
Total Contributions 110637786 61353 , 171 714169957
Investment income
Interest related to plan investments (303 ,824) 644 ,676 340,852
Interest related to employee loans - 335 , 943 335 ,943
Net change in fair value of investments 517561093 111622 , 284 17 , 378 ,377
Total Investment Income 514520269 12 , 602 ,903 18 , 0559172
Total Additions 6 ,516 ,055 18 ,956 ,074 25 ,472, 129
DEDUCTIONS
Benefit payments 11471 ,914 3 ,674 , 204 51146 , 118
Administration 18 , 241 293 , 628 311 ,869
Total Deductions 11490, 165 3 , 967 ,832 51457, 987
Net Increase 51025 , 900 14 ,988 , 242 20 ,0147142
Net Assets Held In Trust for Retirement Benefits
Beginning of year 29 , 081 ,432 571101 , 148 86 , 182 , 580
End of Year $ 34 , 107 ,332 $ 72 ,089 ,390 $ 1061196 , 722
See the accompanying independent auditors' report. ,
136 City of Fort Collins
GENERAL EMPLOYEES ' RETIREMENT PLAN TRUST FUND
SCHEDULE OF CHANGES IN NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS - ACTUAL AND BUDGET (NON -GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
OPERATING REVENUES
Actual Budget (Negative)
-
Contributions $ 1 ,063 , 786 $ 100123000 $ 51 , 786
Earnings on investments (303 ,824 ) 575 ,000 (8789824 )
Net increase in the fair value of investments 51756 ,093 - 5, 756 , 093
Total Operating Revenues 61516 ,055 1 F5877000 41929 ,055
OPERATING EXPENSES
Benefit payments 10471 , 914 11933 , 000 461r086
Administration 181241 69 ,221 50,980
Total Operating Expenses 1 ,490 , 155 21002 ,221 512 ,066
Change in Net Assets 5 ,025, 900 $ (415 ,221 ) $ 51441 , 121
Net Assets Held in Trust for Retirement
Benefits--January 1 29 081 ,432
Net Assets Held in Trust for Retirement
Benefits--December 31 $ 34107 ,332
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 137
AGENCY FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31 , 2003
Foudre Fort Collins- Total
Fire Loveland Agency
Authority Airport Funds
ASSETS
Current Assets
Cash and cash equivalents $ 31445 , 118 $ 69 ,765 $ 31514 , 883
Receivables
Interest 51632 - 51632
Investments , at fair value
U S Government securities 19012 ,486 - 11012 ,486
Corporate bonds 509, 120 - 509 , 120
Total Investments , at fair value 1 ,521 ,606 - 11521 ,606
Total Assets $ 41972 , 356 $ 69 , 765 $ 51042 , 121
LIABILITIES
Current Liabilities
Amounts held for other governments 41972 ,356 691765 51042, 121
Total Liabilities $ 41972,356 $ 69 ,765 $ 51042, 121
See the accompanying independent auditors' report.
138 City of Fort Ft. Collins
AGENCYFUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31 , 2003
POUDRE FIRE AUTHORITY Balance-- Balance--
ASSETS Dec. 31 , 2002 Additions Deletions Dec. 31 , 2003
Cash and cash equivalents $ 41100 , 206 $ 640 ,474 $ 11295 ,562 $ 31445, 118
Receivables- interest 11189 47443 - 5 ,632
Investments, at fair value
U S Government securities 530 ,534 501 , 095 190143 1 ,0121486
Corporate bonds 521 , 860 - 12 , 740 509 , 120
Total Investments , at fair value 1t0529394 501 ,095 31 , 883 11521 , 606
Total Assets 511539789 1 , 1469012 1 /3279445 41972 , 356
LIABILITIES
Amounts held for other governments $ 51153 , 789 $ 11146r012 $ 11327,445 $ 41972, 356
FORT COLLINS-LOVELAND AIRPORT Balance-- Balance--
ASSETS Dec . 31 , 2002 Additions Deletions Dec. 31 , 2003
Cash and cash equivalents $ 68 ,930 $ 679835 $ 67, 000 $ 691765
LIABILITIES
Amounts held for other governments $ 680930 $ 835 $ - $ 69 , 765
TOTAL--ALL FUNDS Balance-- Balance--
Dec. 31 , 2002 Additions Deletions Dec. 31 , 2003
ASSETS
Cash and cash equivalents $ 41169 , 136 $ 708 ,309 $ 17362 ,562 $ 31514 , 883
Receivables - interest 10189 41443 - 51632
Investments, at fair value
U S Government securities 5307534 501 , 095 19 , 143 10012,486
Corporate bonds 521 , 860 - 12 ,740 509 , 120
Total Investments , at fair value 1 ,052, 394 501 ,095 311883 1 ,521 , 606
Total Assets 51222 ,719 11213 ,847 1 , 394 ,445 5 ,042 , 121
LIABILITIES
Amounts held for other governments 57222 ,719 11146,847 1 , 327 ,445 510427121
Total Liabilities $ 51222 , 719 $ 1 , 146 ,847 $ 1 ,327 ,445 $ 510421121
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 139
THIS PAGE LEFT BLANK INTENTIONALLY.
140 City of Fort Collins
COMPONENT UNIT
INDIVIDUAL FUND BUDGET SCHEDULES
DOWNTOWN DEVELOPMENT AUTHORITY
Funds :
General -- to account for all general operations of the DDA except those required to be accounted for in another
fund .
Debt Service -- to account for tax increment revenues received from property taxes and used to service the DDA's
tax increment bonds .
Comprehensive Annual Financial Report 141
THIS PAGE LEFT BLANK INTENTIONALLY.
142 City of Fort Collins
DOWNTOWN DEVELOPMENT AUTHORITY
GENERALFUND
STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN NET ASSETS --
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
REVENUES Actual Budget (Negative)
Taxes $ 382 , 142 $ 376 , 534 $ 5 ,608
Earnings on investments 16 , 701 14 , 143 2 , 558
Miscellaneous revenue 27 ,684 40, 910 ( 13 ,226 )
Total Revenues 426 , 527 4311587 (51060 )
EXPENDITURES
Administration 1 , 087 , 528 21234 , 583 1 , 147 ,055
Capital outlay 134 , 810 332 , 000 197, 190
Total Expenditures 11222 ,338 20566 , 583 113441245
Excess of Revenues Over ( Under)
Expenditures (795 , 811 ) (21134 , 996) 113391185
OTHER FINANCING SOURCES
Proceeds from issuance of long term debt 17000 ,000 1 ,0000000
Excess of Revenues and Other Sources
Over (Under) Expenditures 204, 189 $ ( 11134, 996 ) $ 11339 , 185
Net Assets--January 1 11414 ,266
Net Assets--December 31 $ 11618 ,455
See the accompanying independent auditors' report
Comprehensive Annual Financial Report 143
DOWNTOWN DEVELOPMENT AUTHORITY
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31 , 2003
Variance With
Actual
Positive
Actual Budget ( Negative)
REVENUES
Taxes $ 216431643 $ 21465 , 369 $ 178 ,274
Earnings on investments 56 , 241 71333 48, 908
Net increase in the fair value of investments 1 ,282 - 11282
Total Revenues 29701 , 166 21472 , 702 2283464
EXPENDITURES
Principal 21080 ,000 21080, 000 -
Interest 574 , 787 593 ,037 18 , 250
Total Expenditures 216547787 21673,037 18 , 250
Excess of Revenues Over (Under) Expenditures 46 ,379 $ (200, 335) $ 246 , 714
Net Assets--January 1 727 ,632
Net Assets--December 31 $ 774 ,011
See the accompanying independent auditors' report
144 City of Fort Collins
CAPITAL ASSETS USED IN THE OPERATIONS
OF GOVERNMENTAL FUNDS
Comprehensive Annual Financial Report 145
THIS PAGE LEFT BLANK INTENTIONALLY.
146 City of Fort Collins
CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL ACTIVITIES
SCHEDULE BY SOURCE
DECEMBER 31 , 2003
Restated
Balance-- Balance--
GOVERNMENTAL FUNDS CAPITAL ASSETS Jan . 1 , 2003 Additions Dispositions Dec. 31 , 2003
Land and water rights $ 55 ,4002468 $ 61947 ,648 $ 235,880 $ 62, 112,236
Street system infrastructure 2350980 , 729 %614,081 - 24595947810
Construction in progress 26 ,772 , 176 16 ,2009310 25,283 ,980 17,688 , 506
Total capital assets not being depreciated 318, 153,373 32 ,7629039 25,5197860 325 , 395,552
Buildings
Buildings 56 ,552,213 11 ,3999933 20, 162 67 ,931 ,984
Building improvements 121703 ,365 336 ,514 - 13 ,039,879
Total 69 ,255,578 111736 ,447 20, 162 80 ,971 ,863
Improvements Other Than Buildings
Art in public places 887,422 212 ,955 - 191007377
Traffic signal system 10,095,660 535 ,616 - 10,631 ,276
Improvements other than buildings 28 , 791 ,574 13 ,467 ,440 - 42,259,014
Ft Collins/Loveland Airport - (City's Share) 7 , 157,826 36 ,258 - 79194 /084
Total 46 ,932 ,482 14 ,2527269 - 61 , 184 ,751
Machinery and Equipment
Vehicles 91676,084 1 ,526, 780 942,448 10 ,260 ,416
Heavy equipment 151255,936 11015,946 393 ,983 15 ,877 ,898
Mechanical equipment 31529 ,020 481 ,389 381680 31971 ,729
Building equipment 1 /8371297 72600 - 11844 ,897
Furniture & fixtures 1 ,874 ,431 97,027 - 11971 ,458
Office equipment 21370,425 477 ,604 249,885 21598, 144
IT Systems / hardware 72677,248 426 ,881 2359700 7 ,868,429
Total 42 ,220,441 4 ,033 ,226 11860 ,696 44,392,971
Total Governmental Funds Capital Assets $ 476 ,561 ,874 $ 621783 ,981 $ 279400,718 $ 511 ,945, 137
INVESTMENTS IN GOVERNMENTAL FUNDS
CAPITAL ASSETS FROM :
Operating revenue $ 201 ,330,382 $ 52 ,597, 152 $ 26 ,733,715 $ 227, 193 ,819
Revenue bonds 41615,845 - - 41615, 845
Bond aniticipation notes 814349720 - - 81434 , 720
Certificates of participation 16 ,850, 195 - - 16 ,8509195
Assignments of lease proceeds - 992 ,068 - 9920068
Capital leases 8 ,985 ,634 11280 ,860 6029511 91663 ,983
Federal grants 19 ,517 ,476 692,926 64 ,492 20, 1450910
State grants 650 , 167 91929 - 660 ,096
Contributions from other govt 10,348 ;317 - - 10 ,348 ,317
Donations 205,829 ,138 712119046 - 213 ,040, 184
Total Governmental Funds Capital Assets $ 476 ,5617874 $ 62, 783,981 $ 27,400, 718 $ 511 ,945 , 137
See the accompanying independent auditors' report.
Comprehensive Annual Vinancial Report 147
CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL ACTIVITIES
SCHEDULE BY FUNCTION AND ACTIVITY
DECEMBER 31 , 2003
Community
Cultural, Planning & Total
General Public Library, & Environmental Trans - Allocated to
FUNCTION Government Safety Recreation Services _ portation Functions
Land and water rights $ 21648,090 $ 140,000 $ 13,351 , 145 $ 41 ,3591017 $ 4r613,984 $ 629112r236
Street ystem Infrastructure 2459594,810 245,5941810
Buildings
Buildings 1306309816 11203r998 25,5700681 2,180, 114 25,346,375 67,9319984
Building Improvements 6,3243378 69398 130 9,929 307,442 139039,879
Total 19t955t194 1 ,203,998 31 ,9681811 _ 27190/043 25,653,817 80,9711863
Improvements Other Than Buildings
Art in public places 1r1001377 - 11100,377
Traffic signal system 10,631 ,276 10,631 ,276
Improvements other than buildings 61042,863 33,252,252 21014,984 948,915 42,25%014
Ft Collins/Loveland
Airport (City's Share) - 71194,084 _ 7, 1941084
Total 6,042,863 34,352,629 2 014 984 18,774,275 61 ,184r751
Machinery and Equipment
Vehicles 904, 181 4,898,031 19633,835 440,312 2r384,057 100260,416
Heavy equipment 319000 221 ,596 1r823,354 11028,781 12,7730167 15,8771898
Mechanical equipment 170,917 33,659 2,257,747 91 ,561 11417,845 3,971 ,729
Building equipment 3389600 119r000 1 ,3159797 71 ,500 118449897
Furniture & fixtures 887,674 45,515 377,016 661 ,253 119719458
Office equipment 950,244 2107848 328,428 2051928 902,696 215980144
IT Systems / hardware 3r46%692 _ 2,563,459 479,358 27,361 1 ,328,559 7,868,429
Total 6,752,308 8,092, 108 8,2151535 1 ,793, 943 19,539,077 44,392,971
Total Allocated to Functions $ 35,398t455 $ 9,436, 106 $ 87,888, 120 _ $ 47r3571987 $314, 175,963 4949256,631
Construction in progress 17,688,506
Total Governmental Funds Capital Assets $511 ,945, 137
See the accompanying independent auditors' report.
148 City of Fort Coffins
CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL ACTIVITIES
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED DECEMBER 31 , 2003
Restated
Balance-- Balance--
FUNCTION Jan . 1 , 2003 Additions Dispositions Dec. 31 , 2003
General government $ 35, 517,840 $ 564,297 $ 6839682 $ 35, 398 ,455
Public safety 71615, 367 2,333 , 939 513 ,200 9, 436, 106
Cultural , Library , & Recreation 65,407,324 221580, 719 99,923 87 , 888, 120
Comm. Planning & Enviro. Svs 40,574, 841 61783, 146 47,357, 987
Transportation 300 ,674, 326 14, 321 , 570 819, 933 314, 175 , 963
Construction in progress 26 , 7729176 16, 200,310 25 ,283, 980 17 .688 , 506
Total Governmental Funds Capital Assets $ 476, 5619874 $ 621783, 981 $ 27 ,400 , 718 $ 511 , 945, 137
See the accompanying independent auditors' report.
Comprehensive Annual Financial Report 149
THIS PAGE LEFT BLANK INTENTIONALLY .
150 City of Fort Collins
STATISTICAL SECTION
Comprehensive Annual Financial Report 151
THIS PAGE LEFT BLANK INTENTIONALLY,
152 City of Fort Collins
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Comprehensive Annual Financial Report 153
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN YEARS(1 ) (UNAUDITED)
Fees and
Licenses and Intergovern- Charges for Fines and Miscellaneous
Taxes Permits mental Services Forfeits Other Total
1994 $ 529235,811 $ 11120,317 $ 81946,963 $ 17,487,905 $ 572,867 $ 4163%920 $ 85,0031783
1995 54744,716 111729188 9,5930845 199284,445 731 ,957 51036,473 90,563,624
1996 591256,603 1r295,515 12,2580285 22,294,554 913,659 51604, 160 1011622,776
1997 62, 135,765 1 ,308,629 141217,909 23,826,346 11006r442 51835,583 1081330,674
1998 68,828,273 1 ,773,395 171496,787 28,395,005 11180,399 71303,432 124,977,291
1999 760552, 186 107889824 197713,474 291091221 1 , 1250615 101047r214 138,336,534
2000 80,502,964 11696,722 17,7561464 28,958,451 11196,768 16,301 ,719 14694130088
2001 84,401 ,996 198431234 20,971 ,337 313440,846 10224,963 17, 122,383 1571004,759
2002 848888,283 19683,920 21 ,239,044 28,8931284 11306,502 159855,356 153,866,389
2003 84,7701702 11764,018 16, 1791185 30,376,406 118443921 14, 168,652 149, 1031884
(1 ) Includes all general, special revenue and debt service funds of the primary government.
154 City of Fort Collins
PROPERTY TAX LEVIES AND COLLECTIONS
SPECIAL ASSESSMENT COLLECTIONS
LAST TEN YEARS (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
Total(3) Collections
Collection Total Tax Tax As a Percent
Year Levy(1 )(2) Collections of Tax Levy.
City:
1994 $ 613697831 $ 62206,307 97.43 %
1995 696011227 61434 ,411 97.47
1996 7,4255016 7,230,849 97,39
1997 79766 /667 71578,215 97,57
1998 814857942 8 ,287, 162 97.66
1999 80788,552 815799040 97,62
2000 10 ,325,033 10 , 1721098 98.52
2001 10,661 ,031 109354, 190 97, 12
2002 12,0045184 11 ,943,303 99 .49
2003 127365 ,206 121313 ,458 99.58
General Improvement District No. 1 :
1994 $ 115,991 $ 109, 791 94 ,65 %
1995 117,263 113,214 96 .55
1996 118,346 115,250 97 ,38
1997 1307134 126 ,505 97,21
1998 113 ,273 134 , 139 118 .42
1999 140 ,674 135 , 184 96. 10
2000 162 ,387 157,074 96.73
2001 161 , 140 156 ,438 97.08
2002 178 ,529 1732639 97.26
2003 180, 124 1829673 101 ,42
Downtown Development Authority:
1994 $ 962 ,449 $ 940 ,245 97.69 %
1995 11039 ,644 1 ,017,003 97.82
1996 11165,622 11141 ,631 97.94
1997 1 ,363 , 842 11338 ,890 98, 17
1998 1 ,5141958 11482 ,243 97,84
1999 11842,897 1 ,804,001 97 ,89
2000 21062,498 2 ,0211866 98 .03
2001 21145,615 20101 ,925 97 .96
2002 21364 ,542 2 ,322 ,830 98 .24
2003 31047,648 21988 ,073 98.05
SPECIAL ASSESSMENT COLLECTIONS(4)
Total Total
Year Collections Year Collections
1994 $ 3 , 561 ,771 1999 $ 502,441
1995 11763 ,041 2000 322,720
1996 893, 832 2001 233,303
1997 691 ,386 2002 112,083
1998 506 ,944 2003 -
(1 ) Collection year follows levy year. Levy for City and General Improvement District No. 1 are net of
tax incremental levy for the Downtown Development Authority.
(2) Source : Larimer County Assessor's Office.
(3) Collections are net of fees collected by Larimer County.
(4) Special assessment billing information is not available.
Comprehensive Annual Financial Report 155
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN YEARS (UNAUDITED)
Total Estimated
Assessed Actual
Year( 1 ) Valuation (2 ) Value(2)(3 ) _
1994 $ 683 ,480 , 600 $ 3,795 ,295 ,920
1995 769,016 , 600 5,0321292 ,270
1996 805,607 , 970 50259 ,855 ,030
1997 882 ,869 , 230 50940 , 118 , 540
1998 915 , 1595310 69190 ,291 , 110
1999 11075 , 170 , 720 7, 171 , 039 , 590
2000 11109 ,0011981 71466 , 574 ,450
2001 11248 , 635, 567 8,966 , 196 , 099
2002 19292 , 139, 290 97317 , 0597875
2003 11364 , 262 , 334 109973 ,228 , 233
( 1 ) Taxes for the year assessed are collected in the following year.
(2) Source: Larimer County Assessor's Office .
(3) Actual value is statutory based on manuals and data supplied by the State Property Tax
Administrator and differs from market value .
156 City of Fort Collins
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
BY CLASSIFICATION
December 31 , 2003 (UNAUDITED)
Assessed Actual
Vacant $ 577826,920 $ 199 ,394 , 940
Residential 688 ,4147470 8 ,640,482,850
Commercial 400 , 125 , 370 1 ,379 , 736,460
Industrial 1871232 , 910 6457630 , 560
Agricultural 619,080 41385 , 170
Natural Resources 10 ,370 35 , 740
Oil & Gas 2 , 074 71151
State Assessment 30,031 , 140 103, 5557362
Total : $ 11364,262 , 334 $ 10 ,9737228,233
Source: Larimer County Assessor's Office .
Comprehensive Annual Financial Report 157
PRINCIPAL TAXPAYERS ( UNAUDITED)
December 31 , 2003
Percentage of
Assessed Total Assessed
Taxpayer Type of Business Valuation (1 ) Valuation
Principal Taxpayers
Anheuser-Busch , Inc . Beer brewery $ 791587 ,440 5 .83%
Hewlett-Packard Micro electronics 351626 ,880 2 .61 %
Agilent Technologies , Inc . Micro electronics 22 ,231 ,450 1 ,63%
Qwest Public utility 20, 328 ,900 1 .49%
EverWest Shopping mall 11 ,871 ,580 0 ,87%
FC Timberline Development LLC Shopping mall 81873, 100 0 . 65%
LSI Logi Inc. Micro electronics 610850750 0 .45%
Woodward Governor Company Speed Controls 61041 v05O 0 .44%
Comcast of California Public Utility 59785,040 0 .42 %
Public Service Company of Colorado Public utility 51736,210 0 .42 %
All Others 17162 , 0945934 85 .20 %
$ 11364 ,262 , 334 100 .00 %
(1 ) Source: Larimer County Assessor's Office
158 City of Fort Collins
PROPERTY TAX LEVY FROM DIRECT AND OVERLAPPING GOVERNMENTS
APPLICABLE TO MOST PROPERTIES LOCATED IN THE CITY
LAST TEN YEARS (UNAUDITED)
Poudre Health N . Colorado
R- 1 District Water
Larimer School of Northern Conservancy
City County District Larimer County District Total
Rates ( In mills)( 1 ) :
1994 9 . 797 21 . 723 64 .991 2 .304 1 . 000 89.815
1995 9 . 797 20 ,905 51 . 720 2 . 197 1 . 000 85. 619
1996 9 . 797 21 .432 55 . 103 2 . 197 1 . 000 89 . 529
1997 9 ,797 20 .889 53 , 712 2 . 167 1 . 000 87 . 565
1998 9 .797 21 .293 53 , 572 2 . 167 1 . 000 87 .829
1999 9 , 797 21 .656 48 . 243 1 ,985 1 . 000 82 .681
2000 9 . 797 21 . 614 54 .250 2 . 167 1 . 000 88 .828
2001 9 . 797 22 .461 51 , 723 2 . 167 1 . 000 87 . 148
2002 9 . 797 22 .421 51 . 723 2 . 167 1 . 000 87 . 108
2003 9 . 797 22 ,423 52 .496 2 . 167 1 .000 87 , 883
Levy(2 ) :
1994 $ 69696 , 059 $ 31 , 9377116 $ 51 ,8297104 $ 29173 ,315 $ 11377, 344 $ 94 ,0121938
1995 71534 , 055 341701 , 117 54 ,765,817 2 ,332 ,035 11557,685 100 ,8907709
1996 7 , 8941983 37 , 388, 917 617109 ,856 2 ,445 ,616 11638 ,239 1100477 ,611
1997 8 ,649 ,472 40 ,091 ,435 64 ,9347792 21637,581 11802 ,460 118, 115 , 740
1998 819651816 42 , 388 , 506 66 ,927 , 907 2 , 728,747 118719996 122 , 882 , 972
1999 10 , 5337448 50 ,345, 125 70 , 166 , 539 21914 , 651 21186 , 740 136 , 146 , 503
2000 10 , 864 , 892 52, 5217992 811893 , 733 31306 , 721 21288, 815 150 , 876, 153
2001 121232 , 883 63 , 998 , 662 89 ,678, 190 31807,213 21670, 823 172 , 3879771
2002 12 ,65%089 66 , 354 , 558 929540,989 319437684 207807632 178 , 278 ,952
2003 13 , 365 ,678 69,695 ,216 97,612 , 898 41110 , 264 21911 , 686 187 , 695 , 742
Portions of the City are subject to additional mill levies due to their location within the following
taxing districts :
2003 Rate
(Mills) 2003 Levy
Fort Collins General Improvement District No . 1 (3 ) 4 , 924 $ 2681712
Fort Collins-Loveland Water District 1 . 500 562 , 913
South Fort Collins Sanitation District 0 .050 153 ,238
Fort Collins Downtown Development Authority(3 ) 5. 000 350 , 938
Source : Larimer County Assessor's Office .
( 1 ) One mill generates $ 1 of property tax revenue per $ 1 , 000 of assessed valuation .
(2) Taxes for the year levied are collected in the following year.
(3) Part of the City's reporting entity.
Comprehensive Annual Financial Report 159
SCHEDULE OF DIRECT AND OVERLAPPING DEBT
ASSESSED VALUATION , DEBT, AND DEBT RATIOS
December 31 , 2003 (UNAUDITED)
SCHEDULE OF DIRECT AND OVERLAPPING DEBT
Outstanding
General Percentage Share of Debt
Obligation Applicable Applicable
Debt ( 1 ) to the City (2 ) to the City
City of Fort Collins $ - 0 . 00% $ -
Overlapping Debt
Poudre R- 1 School District (3) 240 ,819 , 493 73 , 37% 176,689 , 262
Poudre Health Services District (3) 11 t4009000 71 ,91 % 89197 , 740
2521219,493 1849887 , 002
Totals $ 252 ,219,493 $ 184 , 887 , 002
ASSESSED VALUATION , DEBT, AND DEBT RATIO
DECEMBER 31 , 2003
Estimated actual valuation . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100973,228 ,233
Assessed valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19364,262 ,334
Net general obligation direct debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ -
Estimated overlapping debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1841887 ,002
Net direct and estimated overlapping debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 184 , 8879002
Ratio of net direct debt to estimated actual valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 , 0000
Ratio of net direct debt to assessed valuation . . . . 0 . 0000
Net direct debt per capita (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ -
Ratio of net direct and estimated overlapping debt to
estimated actual valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . 0168
Ratio of net direct and estimated overlapping debt to
assessed valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . 1355
Net direct and estimated overlapping debt per capita (4 ). . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11416
Estimated actual valuation per capita (4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,044
Assessed valuation per capita (4) . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . $ 10 ,449
( 1 ) Includes only general obligation debt supported by general property taxes less available debt service
monies . Does not include general obligation water bonds which have historically been supported by
water revenue and not property taxes or general obligation bonds supported by special assessments .
(2 ) Determined by calculating ratio of assessed valuation of taxable property within the City to assessed
valuation of the overlapping unit . Source for assessed valuations : Larimer County Assessor's Office .
(3 ) Source: Governmental entity .
(4 ) Population estimate per City Planning Department -- 130 ,566 .
160 CIty of Forf Collins
COMPUTATION OF LEGAL DEBT MARGIN
December 31 , 2003 (UNAUDITED)
Assessed Valuation ( 1 ) $ 1 , 364 ,262 ,334
Debt limit - 10% of assessed value $ 136 ,426 , 233
Amount of debt applicable to limit:
Total bonded debt (including
special assessment bonds ) $ 1479257 ,217
Less :
Assets in debt service funds available
for payment of general obligation debt
Other deductions allowed by law:
Downtown Development Authority tax
increment bonds (41383 ,000)
Sales and use tax revenue bonds (51430,000)
General obligation water bonds ( 16 ,410 ,000 )
Water revenue bonds (37 , 906 ,986 )
Sewer revenue bonds (32 ,220,267 )
Storm drainage revenue bonds (48 ,347 , 500 )
Highway users tax revenue bonds (29559 ,464 )
Net amount of debt applicable to debt limit
Legal debt margin $ 136 ,426 ,233
( 1 ) Source : Larimer County Assessor's Office .
Comprehensive Annual Financial Report 161
RATIO OF NET DIRECT GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET DIRECT BONDED DEBT PER CAPITA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
DIRECT GENERAL BONDED DEBT TO GENERAL EXPENDITURES
LAST TEN YEARS (UNAUDITED)
RATIO OF NET DIRECT GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET DIRECT BONDED DEBT PER CAPITA
Ratio Of Net
Net Direct Direct General Net Direct
Assessed General Bonded Debt to Bonded Debt
Population Valuation Bonded Debt(1 )(2) Assessed Valuation Per Capita
1994 95 , 889 $ 683,480, 600 $ 23865 , 000 0 , 0042 $ 30
1995 99 , 726 769,016, 600 23360 , 000 0 . 0031 23 ,66
1996 102 , 571 805,607 , 970 118207000 0, 0023 17 , 74
1997 106 ,223 882,969, 230 11250 ,000 0.0014 11 . 77
1998 108 , 981 915, 159, 310 955,000 0. 0010 8 . 76
1999 112 , 912 1 ,075, 170, 720 6507000 0. 0006 5 ,76
2000 118 , 652 915, 159 , 310 330 , 000 0, 0004 2 . 78
2001 122 , 377 110751170 ,720 - - -
2002 126 , 848 1729211397290 - - -
2003 130 , 566 17364 ,262 , 334 - - -
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
DIRECT GENERAL BONDED DEBT TO GENERAL EXPENDITURES
Ratio of Debt
Total Debt Total General Service to General
Principal Interest Service(1 ) _Expenditures (3) Expenditures
1994 $ 4853000 $ 180 , 663 $ 665,663 $ 709387, 769 0 . 0095
1995 5057000 150 , 192 655, 192 79 ,976, 340 0. 0082
1996 540,000 117, 193 6579193 83, 1161288 0 . 0079
1997 5701000 80,692 650,692 90,9479721 0 . 0072
1998 295,000 57 ,608 352 ,608 991918 , 081 0 , 0035
1999 305 , 000 44 , 922 349 ,922 104 ,667 , 138 0 . 0033
2000 320 , 000 31 , 045 351 , 045 1141731 , 679 0 .0031
2001 330 , 000 16 , 005 3467005 123 ,268 , 997 0.0028
2002 - - - 134 , 086 , 208 -
2003 - - - 126 , 663 , 031 -
( 1 ) Includes only general obligation debt of the City supported by general property taxes .
(2 ) Equals gross direct general bonded debt less debt service monies available.
(3) Includes general , special revenue and debt service funds of the City and its component units .
162 City of Fort Collins
REVENUE BOND COVERAGE
LAST TEN YEARS (UNAUDITED)
SEWER REVENUE BONDS
Net Revenue
Gross Available for Debt Service Requirements
Revenues Expenses Debt Service Principal Interest Total Coverage
1994 $ 15, 765,612 $ 61499, 019 $ 91266 ,593 $ 11979, 166 $ 31291t03O $ 592701196 1 .76
1995 16,235,434 60814,874 9,4200560 21070, 836 3 , 148,926 5,2190762 1 .80
1996 16,458,987 7/0137751 91445 ,236 21286,936 218709990 5, 1571926 1 .83
1997 15, 534,086 7,251 , 132 81282 ,954 2,566,718 21503,292 5,070,010 1 .63
1998 17,493 ,497 70529, 753 91963 ,744 205679645 2 ,395,363 4,9639008 2.01
1999 1793570616 8,076, 117 91281 ,499 20599,075 21281 , 244 41880,319 1 .90
2000 18,0091290 8,2851684 91723,606 27791 ,950 29161 , 579 41953 ,529 1 .96
2001 19,267,404 81733, 170 10 ,534,234 31040,433 2,057,455 51097 ,888 2.07
2002 17A97,700 9, 021 ,741 81475,959 31160,550 29373,596 59534 , 146 1 .53
2003 161498,459 87671456 71731t003 31172,004 2,220, 133 51392, 137 1 .43
STORM DRAINAGE REVENUE BONDS
Net Revenue
Gross Available for Debt Service Requirements
Revenues Expenses Debt Service Principal Interest Total Coverage
1994 $ 4, 3551040 $ 11373,078 $ 29981 ,962 $ 2851000 $ 666$ 46 $ 951 ,546 3. 13
1995 41617,027 1 ,361 , 021 3 ,256 ,006 355,000 651 , 146 1 ,0069146 3.24
1996 41938,623 1 ,518, 504 31420/ 119 3800000 630, 806 1 ,010,806 3.38
1997 5,078,864 1 ,5571560 31521 ,304 235,000 5871029 822 ,029 4.28
1998 51636, 101 17728, 041 31908,060 4703000 709, 328 1 , 179,328 3.31
1999 61883,868 11861 ,037 51022,831 500, 000 1 , 174 , 146 13674 , 146 3.00
2000 7, 756, 140 211981073 515580067 10175, 000 17636, 668 21811 ,668 1 .98
2001 8128%000 2, 256,919 6,032, 081 11410,000 1 ,644, 566 3 ,0540566 1 .97
2002 11 ,583,376 216200981 81962, 395 11655,000 21336,571 31991T571 2.25
2003 12 , 910,089 2, 574 ,203 103335, 886 2, 162,500 21284 ,237 47446,737 2.32
HIGHWAY USERS TAX REVENUE BONDS( 1 )
Net Revenue
Gross Available for Debt Service Requirements
Revenues Expenses Debt Service Principal Interest Total Coverage
1994 $ 21041 , 881 $ $ 270412881 $ 1250000 $ 2281328 $ 353, 328 5.78
1995 2, 1711192 - 21171 , 192 130,000 223 ,452 3531452 6. 14
1996 213353768 - 21335,768 1351000 217, 797 352,797 6.62
1997 25577,044 - 21577 ,044 145, 000 211 , 520 356,520 7 .23
1998 21889,902 - 21889, 902 - 1021207 102 ,207 28 .27
1999 2,211 ,376 - 27211 ,376 901000 148, 555 238 , 555 9.27
2000 21148,377 - 21148,377 2209000 1340248 354 ,248 6.06
2001 29366,554 - 213660554 230,000 126,548 356,548 6.64
2002 21366, 397 - 21366, 397 2353000 118,268 353,268 6.70
2003 21309, 109 2 ,309, 109 245,000 109,573 3547573 6.51
(Continued )
Comprehensive Annual Financial Report 163
REVENUE BOND COVERAGE
LAST TEN YEARS (UNAUDITED)
(Continued )
SALES AND USE TAX REVENUE BONDS (2)
Net Revenue
Gross Available for Debt Service Requirements
Revenues Expenses Debt Service Principal Interest Total Coverage
1994 $ 32, 345 , 191 $ - $ 32, 3450191 $ 1 ,710 ,000 $ 111440395 $ 228543395 11 . 33
1995 351381 , 156 - 35,3810156 1 ,755,000 110950015 2/8503015 12.41
1996 38, 350 ,513 - 3873509513 1 ,815,000 1 ,0337095 2, 848,095 13.47
1997 40,4169363 401416,363 11885,000 962, 103 21847, 103 14.20
1998 45,3259646 45,325,646 11970,000 882, 580 21852,580 15.89
1999 50,699,053 50 ,699,053 21050,000 794,035 2,844,035 17.83
2000 52,3461674 52,346 ,674 21145,000 697,928 2,8420928 18.41
2001 56,643,203 56,643 ,203 21255,000 594,043 29849,043 19.88
2002 53,757,585 53,7571585 21365,000 481 ,633 21846,633 18.88
2003 541125,730 54, 1251730 735,000 294,045 100297045 52.60
GENERAL OBLIGATION WATER BONDSMATER REVENUE OBLIGATIONS(3)
Net Revenue
Gross Available for Debt Service Requirements
Revenues Expenses Debt Service Principal Interest Total Coverage
1994 $ 18,7209173 $ 7,528,733 $ 11 , 1911440 $ 21580,081 $ 29760,495 $ 5,340, 576 2. 10
1995 19,419, 720 71873 ,784 11 ,545,936 21425,000 27611 ,986 59036, 986 2.29
1996 21 , 155, 679 7,905,862 13,2491817 21590/ 000 21464,918 5,0541918 2.62
1997 20,396, 116 8,339,983 12,056, 133 2 ,7400000 21329,466 59069,466 2.38
1998 23,360 , 903 8,906 ,404 14,454 ,499 2 ,841 , 631 274019113 51242,744 2.76
1999 26,068, 298 9,577 ,305 16,490,993 40241 ,659 31518,807 71760,466 2. 13
2000 2910430170 10,554 ,011 182489, 159 40537,806 31531 ,986 81069,792 2.29
2001 32 ,227 , 924 11 ,0992066 21 , 128,858 41758,771 31327,064 8 ,085,835 2.61
2002 29 ,504,446 110886,658 17,6171788 4 ,995,204 31092,660 8 ,0871864 2. 18
2003 312104, 859 12,932, 160 18, 172,699 41871 /637 21238,698 71110,335 2.56
(1 ) Gross revenues are reported as part of intergovernmental revenues in the Transportation Fund .
(2) Gross revenues are less sales tax restricted for specific purposes .
(3) General obligation water bonds have historically been paid from water revenues of the City and not general
property taxes.
164 City of Fort Colfins
PROPERTY VALUE, CONSTRUCTION ACTIVITY, ASSESSED REAL PROPERTY VALUES AND
TOTAL STREET MILES
LAST TEN YEARS (UNAUDITED)
Construction Activity--
Building Permits Issued Assessed Real
Housing Total Property Values
Year Permits Value Permits Value Business Residential
1994 1 ,462 $ 1107828, 419 41342 $ 154 ,827 , 026 $ 197 ,460, 020 $ 344 ,444 , 900
1995 1 ,232 959397 , 371 41250 16279155698 2220957 , 090 398, 922 ,040
1996 11762 134 ,3021016 41833 187 ,998 , 855 234,066 , 390 417 ,4802110
1997 11315 121 ,423 , 816 51066 2041403 , 553 260,5591420 444 ,663 , 750
1998 11703 165,326 ,408 51461 2961040 ,273 274 ,012,070 462 ,818, 330
1999 17892 1817653 , 157 61729 400 ,8585459 306 , 7183321 50915599864
2000 11582 166,931 , 148 71265 3017921 ,759 262 , 044, 132 5331759 ,449
2001 17899 1831763 , 167 71558 3477620, 126 302 , 338,400 622996% 507
2002 17579 1711430 ,007 71335 280 , 6303125 317, 532, 750 6497837,290
2003 1 ,422 1677532 ,010 7 , 804 292 ,4121644 336,979, 120 6877548, 630
Annexation Trends
Acres City Size Annual Total
Year Annexed (Sq Mi) Growth Street Miles
1994 857 44 .02 3 .21 362
1995 51 44 . 10 0 . 18 373
1996 - 44 . 10 0 .00 385
1997 64 44 .20 0 . 23 392
1998 448 45 .60 3 . 17 403
1999 397 46 .30 1 . 54 413
2000 346 46 . 98 1 . 47 415
2001 11587 49 .43 5 . 21 436
2002 691 50 . 51 2 . 18 463
2003 314 51 .00 0 ,97 472
Comprehensive Annual Financial Report 165
DEMOGRAPHIC STATISTICS (UNAUDITED)
Population School Enrollment Unemployment
Year City County(1 ) CSU(2) Poudre R-1 (3) Rate
1994 95,889 208 ,435 211410 20,939 4.0 %
1995 99,726 216 ,289 21 ,914 21 ,087 4. 1
1996 102,571 222 ,462 211970 210642 4.0
1997 106,223 226 ,084 22,344 21 ,642 3.9
1998 108,981 2341345 221523 23,031 3.8
1999 112,912 2421783 221782 23,404 3. 1
2000 118,652 251 ,494 23,098 23,412 3 .0
2001 1221377 258 ,985 23,934 23,081 3.5
2002 1261848 268 ,740 24,735 23,043 5.2
2003 130,566 273 ,695 25,042 23,027 5.8
2002 Age Profile by Classification and Comparative Data for County, State, and U .S.(4)
% of City % of Country % of State % of US
Age Population Population Population Population
0-17 21 .5 % 23.2 % 25.3 % 25.2 %
18-24 19.8 13.5 9.8 9.8
25-34 17 .3 14.2 14 .4 13.3
35-49 21 .2 23.3 24 .4 22.8
50 + 20 .2 25.8 26 . 1 28.9
2002 Effective Buying Income Category
and Comparative Data for County, State, and United States(4)
% of City % of Country % of State % of US
Income Households Households Households Households
<$20 ,000 20. 1 % 16.2 % 16 .8 % 22.3 %
$209000-34,999 21 .5 20.4 21 .6 23. 2
$359000-49,999 19.3 20.6 20 .4 19.5
>$50,000 39. 1 42.8 41 .2 35 .0
Year Per Capita Effective Buying Income and Comparative Data for County, State, and U.S- (4)
City County State U.S.
1994 $ 14 ,640 $ 15, 165 $ 161603 $ 160064
1995 15,505 16,052 171432 16,918
1996 147364 14, 864 15 ,449 14,965
1997 14,868 15, 382 16 ,019 15,555
1998 15,698 16, 245 16760 167281
1999 16,430 16, 982 17 , 526 16 ,895
2000 17,389 17, 947 18 ,465 17,691
2001 17 ,961 18,789 19,466 18 ,426
2002 182780 20r168 21 ,220 18 ,491
2003 19793 21 ,065 20 ,995 18 ,375
2002 Miscellaneous Demographic Data(4)
City County State U. S.
Median Age of Population n/a 34.4 n/a 36. 1
Number of Households--000s 48.9 104.8 1 ,760.0 109, 443.9
% of U.S . Population 0.0432% 0. 0928% 1 .5735% 100.0000%
Sources:
(1 ) Larimer County.
(2) Colorado State University.
(3) Poudre School District.
(4) Sales & Marketing Management, Survey of Buying Power, 2003 & Prior Editions.
166 City of Fort Collins
HISTORY OF SALES AND USE TAX RATES
LAST TEN YEARS (UNAUDITED)
Street Community
General Maintenance Enhancement Natural Total City Larimer Colorado Total
Sales and & Transportation Capital Areas Sales and County State All
Use Tax Projects Projects & Parks Use Tax Tax Tax Taxes
Rates (%)
1994 2 .25 0.25 0.25 0 .25 3. 00 - 3.00 6.00
1995 2.25 0.25 0.25 0.25 3 .00 - 3. 00 6.00
1996 2.25 0.25 0.25 0.25 3.00 - 3.00 6.00
1997 2.25 0. 25 0.25 0.25 3.00 0.25 3.00 6.25
1998 2.25 0 .25 0.25 0.25 3 .00 0.25 3. 00 6.25
1999 2.25 0.25 0 .25 0.25 3.00 0.65 3.00 6.65
2000 2 .25 0. 25 0.25 0.25 3.00 0.75 3.00 6. 75
2001 2.25 0.25 0.25 0.25 3.00 0 .80 3.00 6.80
2002 2.25 0 .25 0.25 0.25 3.00 0.80 2.90 6.70
2003 2 .25 0 .25 0 .25 0 .25 3 .00 0. 80 2 .90 6.70
Comprehensive Annual Financial Report 167
SALES AND USE TAX REVENUE
LAST TEN YEARS (UNAUDITED)
Street Community Sales & Total
General General Maintenance Enhancement Natural Use Tax Sales &
Taxable Sales Tax Use Tax & Transportation Capital Areas and Accrual Use Tax
Retail Sales (1 ) ( 1 ) Projects (2) Projects (3) Parks (4) (5) Revenue
(amounts expressed in thousands)
1994 $ 11113 ,083 $ 25 ,437 $ 59441 $ 39015 $ 31387 $ 31015 - $ 409295
1995 11192 ,083 277241 6 ,501 31308 31706 33308 203 44,267
1996 11273 ,324 29 ,041 71697 31635 41065 31635 553 489626
1997 113637095 31 ,081 71644 31822 41252 33822 558 51 , 179
1998 115069624 34 ,426 91054 49348 4 ,443 41724 231 57,226
1999 11647,695 37 ,724 11 ,035 41847 4,847 51430 574 64 ,457
2000 19797 ,681 41 ,068 81723 4 ,998 4,958 51526 11398 669671
2001 11979 ,023 43,473 10 ,733 51643 5, 584 51734 (576 ) 707591
2002 11965 ,761 43 ,303 81727 51374 51646 51151 11318 69 ,519
2003 11969 ,208 43 , 109 81535 5 ,327 5 ,612 51112 681 68 ,376
( 1 ) Includes the permanent, non-expiring portion of the City's sales and use tax (2.25%).
(2) These amounts are restricted for street maintenance/improvements by ordinance, through 1997; for 1998 and all subsequent years ,
collections are restricted for Building Community Choices Streets and Transportation projects . These tax revenues are authorized
through December 2005.
(3) These amounts are restricted for Choices 95 capital improvements by ordinance, through 1997; for 1998 and all subsequent years,
collections are restricted for Building Community Choices Community Enhancement projects. These tax revenues are authorized
through December 2005.
(4) These amounts are restricted for natural areas by ordinance through 1997; for 1998 and all subsequent years, collections are
restricted for Building Community Choices Natural Areas and Parks projects. In the November 2002 general election , this tax was
authorized to be extended through 2030.
(5) These amounts represent the net effect of applying GASB Statement 22, which requires reporting sales and use taxes on the modified
accrual basis of accounting. Prior to 1995, sales and use taxes were reported on a cash basis.
168 City of Fort Collins
RESIDENTIAL REAL ESTATE SALES STATISTICS
LAST TEN YEARS (UNAUDITED)
Number % Increase Dollar Value % Increase Average % Increase
of Homes from Prior of from Prior Sales from Prior
Sold Year Homes Sold Year Price Year
1994 2,947 -5.9 404 ,952 ,842 11 .5 1372412 18.5 %
1995 21833 -3 .9 4059812,631 0.2 143 ,245 4.2
1996 31109 9.7 4580586 ,827 13.0 147,503 3.0
1997 32165 1 .8 486 ,539,625 6. 1 153 ,725 4 .2
1998 3 ,834 21 . 1 612 ,235,944 25.8 1599686 3.9
1999 31855 0.5 674 ,7649563 10.2 175,036 9 .6
2000 39674 -5.0 71239102308 6.0 194 ,042 11 .0
2001 41059 13.2 864 ,7361896 23.9 213,042 9.5
2002 4, 175 2 .9 907,2869750 4.9 217,314 2 .0
2003 3 ,821 -8 .0 873,255,500 -4 .0 2282541 5.0
Source: Fort Collins Board of Realtors Multiple Listing Service.
Comprehensive Annual Financial Report 169
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION—CUSTOMER BASE , RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED)
Customer Base
The sewer (wastewater) system serves a customer base which has grown as follows in the years 1994 to 2003 :
Years
(at December 31 ) Wastewater Customers
1994 26 , 594
1995 27 , 357
1996 28 , 503
1997 29 ,271
1998 29 ,994
1999 30 , 748
2000 329235
2001 32 , 564
2002 32 , 905
2003 32 ,865
Approximately 95% of the wastewater customers are residential , with the remaining 5% being industrial and commercial
customers . Currently, only two customers represent more than 3% of wastewater system revenues . In 2003, amounts paid
by an industrial customer comprised 11 % of wastewater revenues ($ 1 ,399 , 058 ) with a total flow representing 12% of total
system usage; and amounts paid by the university comprised 5% of wastewater system revenues ($600,791 ), with a total
usage representing 3 . 7 % of total system usage .
Rate Structure
User Charges . The following tables show the City's monthly wastewater user charges in effect on January 1 , 2004 .
Historically, user charges increased 4 . 5% for residential rates and 7 . 5% for commercial rates in 1990 , 8 . 6% for residential
rates and 11 .6% for commercial rates in 1991 , 6 .0% per year for all customer classes in 1992 , 199371994 , and 1995 , 3 . 0%
in 1996, 0% in 1997 and 2 .0 % in 1998 , 1999 , 2000 , 2001 , 2002 and 2003 . Wastewater rates for all customers increased
5% in 2004. A 5% increase is projected for 2005 . Also, in 2004 , wastewater implemented a minimum winter quarter
average consumption (WQA) of 3 ,000 gallons for single family customers (4 ,000 gallons for duplexes) .
Monthly User Charges
Residential Metered Wastewater Rates
Single family $ 7 .89 plus $ 1 . 571 per 1 ,000 gallons of WQC (2)
Duplex $ 10 . 51 plus $ 1 .571 per 1 ,000 gallons of WQC 121
Multi-family $ 1 . 24 per living unit plus $ 1 . 571 per 1 , 000 gallons of
WQC (2)
(continued )
170 City of Fort Collins
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION-CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT (UNAUDITED)
(Continued)
Monthly User Charges (continued)
Commercial Metered Wastewater Rates
3/4" metered $5. 30 plus $ 1 . 571 per 1 , 000 gallons (3)
1 " $ 12 . 11 plus $ 1 . 571 per 1 ,000 gallons (3)
1 - 1 /2" $24 . 53 plus $ 1 . 571 per 1 ,000 gallons (3)
2" $41 . 06 plus $ 1 . 571 per 1 , 000 gallons (3)
3" $68 . 23 plus $ 1 . 571 per 1 , 000 gallons (3)
4" $ 114 . 57 plus $ 1 . 571 per 1 , 000 gallons (3)
6" $561 .75 plus $ 1 ,571 per 1 , 000 gallons (3)
8" $609 .99 plus $ 1 . 571 per 1 , 000 gallons (3)
Footnotes :
( 1 ) Excludes payments in lieu of taxes which are included as an additional 6 % charge in the wastewater bill and remitted
to the general fund .
(3 Average monthly amount of water billed during January, February, and March .
(3) The usage charge of $ 1 . 571 multiplied by each increment of 1 ,000 gallons either (a ) actually consumed or
(b) based on WQC , if customer is eligible .
Plant Investment Fees . The plant investment fee is collected to pay for growth-related capital expansion costs of the
City's wastewater treatment plants, collection system and sludge disposal facilities . This fee is paid at the time a building
permit is issued . Set forth in the following table is the current plant investment fee schedule which became effective on
January 1 , 1999 . Revenue generated by the plant investment fee generally is restricted for the purpose of capital
improvements and expansion of the wastewater treatment plant.
Plant Investment Fees
Residential :
Single family residence $ 1 , 030
Multi-family residence (2 or more ) $830 for each dwelling unit or mobile home space
Non- Residential : (based on water
connection size)
3/4" $2 , 500
1 " $6 , 500
1 - 1 /2" $ 121900
2" $ 18 ,900
3" $3% 600
4" Based on average wastewater flow
Comprehensive annual Financial Report 171
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION-CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT (UNAUDITED)
(Continued)
Other Fees and Charges . The City also charges additional fees and charges related to the provision of sewer service ,
including wastewater strength surcharges , industrial wastewater discharge permit application and administration fees ,
wastewater monitoring and sampling charges , laboratory analysis and support service charges , a private sewage
disposal system permit and inspection fee, and a building sewer permit and inspection fee.
Enforcement
The City's collections of wastewater charges historically have been in excess of 99% . Unpaid charges constitute a
perpetual lien on the property to which service was delivered . Customers with delinquent active accounts are sent
courtesy notices after 38 days . Wastewater service is not discontinued due to delinquency because of public health
regulations . However, the City may discontinue water and electric service on delinquent accounts . Sometimes liens are
filed while the delinquent customer is still an active account. Customers who have moved from the address where
service was supplied and left the account owing to the City are typically assigned to a collection agency.
172 City of Fort Collins
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION --COLLECTIONS AND OPERATING HISTORY (UNAUDITED)
Collections
The following table sets forth the historical Wastewater System user rates , plant investment fees, other fees and charges , and
investment earnings:
Sewer System Income (1999-2003)
1999 2000 2001 2002 2003
User rates $ 11 , 275,827 $ 11 ,869, 338 $ 12 ,2227547 $ 12,419,296 $ 120221 , 993
Plant investment fees 1 ,726,555 1 , 114, 530 31599,025 21460,925 21455,459
Other fees & charges 2, 595,770 3,0641464 1 ,609,523 11478, 174 766,423
Investment earnings 11759,464 11960,958 118360309 11139,305 1 , 054 , 584
Total Sewer System
Revenue $ 17,357 ,616 $ 181009 ,290 $ 199267 ,404 $ 17,497 ,700 $ 16,498 ,459
Operating HistoEy of the Wastewater Fund
The financial section of this Comprehensive Annual Financial Report contains financial statements of the City and the Wastewater
Fund as of and for the year ended December 31 , 2003. The following sets forth the operating history of the Wastewater Fund for
the years ended December 31 , 1999 through 2003:
Comparative Statement of Revenues, Expenses and Changes in Fund Equity
For the Years Ended December 31 , 1999 - 2003
1999 2000 2001 2002 2003
Operating Revenues
Charges for services $ 11 ,275,827 $ 11 ,869, 338 $ 12,2221547 $ 12,4199296 $ 12,2212993
Operating Expenses
Administrative charge 544,289 11287,309 19364 ,835 1 ,533 ,880 1 ,438,443
Personal services 4,273,017 3,690,622 3 ,9051193 41057 ,913 4,0151500
Contractual services 11454,838 18347,073 1 ,549,299 11388,617 11297,264
Commodities 711 ,424 720,794 637,220 6941061 666,296
Other 11092 ,549 1 ,239,886 11276,623 11347 ,270 11349,953
Depreciation 2/7029235 21737,273 21841 ,664 21927 ,906 21564 , 767
Total Operating Expenses 10,778 ,352 11 , 022 ,957 117574, 834 1179492647 11 , 332 ,223
Operating Income 497 ,475 846 ,381 6471713 469 ,649 889,770
Nonoperating Revenues(Expenses)
Other revenue 11176,792 1 ,460 , 162 1 , 153, 831 991 ,290 746,568
Earnings on investments 11759,464 11960 ,958 1 ,836,309 1 , 139,305 12054,584
Net increase (decrease) in
the fair value of investments (368,309) 1920853 281 ,557 23,829 (220, 723)
Gain on sale of capital assets 4550692 486,884 19, 855
Interest expense (21721 ,714 ) (217217534) (217609166) (2,4240662) (29359, 274 )
Other expenses (89,711 ) (92,921 ) (96 , 131 ) (96, 131 ) (96, 131 )
Total Nonoperating
Revenues (Expenses ) (243,478 ) 799,518 871 ,092 1207515 (855, 121 )
Income Before Contributions and
Transfers 2531997 11645, 899 11518,805 590, 164 345649
Capital Contributed 3 , 1451533 21718, 832 3 ,5990025 2,4601925 214550459
Operating transfers in - - 830,830
Operating transfers out (18,250) ( 118, 578) ( 130, 910 ) (69,000) (69,000)
33127 ,283 2/6000254 3 ,468, 115 21391 ,925 3,217 289
Change in Net Assets 31381 ,280 41246, 153 41986, 920 21982,089 31251 ,938
Fund Equity-Jan. 1 74, 873 ,624 78,254,904 82,809, 115 871796,035 90,778 , 124
Fund Equity-Dec. 31 $ 78, 2540904 $ 82,5010057 $ 87,796,035 $ 90,778, 124 $ 94 ,0307062
Comprehensive Annual Financial Report 173
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2 -12 INFORMATION --HISTORIC DEBT SERVICE COVERAGE (UNAUDITED)
The historic debt service coverage on obligations payable from net pledged revenues of the Wastewater Fund for
the past ten years is as follows :
SEWER REVENUE BONDS--COVERAGE OF DEBT SERVICE REQUIREMENTS BY
NET PLEDGED REVENUES OF THE SEWER SYSTEM --1994 TO 2003(1 )
Net
Gross Pledged Debt Service Requirements
Revenues(2) Expenses(3) Revenues Principal Interest Total Coverage
1994 $ 15,7659612 $ 61499 ,019 $ 9 ,2661593 $ 1 ,9790166 $ 30291 ,030 $ 51270 , 196 1 , 76
1995 167235 ,434 61814 ,874 91420 , 560 2 ,070 ,836 3 , 148,926 51219, 762 1 .80
1996 16 ,458 ,987 7 ,013 , 751 91445,236 2 ,286 ,936 21870 ,990 51157,926 1 . 83
1997 15, 534 ,086 71251 , 132 8 ,282,954 21566 ,718 21503 ,292 5 , 0701010 1 ,63
1998 177493 ,497 71529 , 753 91963 ,744 27567 ,645 21395,363 41963 ,008 2.01
1999 17,357 ,616 81076, 117 91281 ,499 21599 ,075 23281 ,244 4 , 880, 319 1 ,90
2000 189009 ,290 81285, 684 91723 ,606 21791 ,950 21161 ,579 41953 , 529 1 ,96
2001 1912677404 81733, 170 10 , 534 ,234 31040 ,433 210579455 51097 , 888 2 .07
2002 17 ,4970700 91021 , 741 81475 ,959 3 , 160 ,550 21373 ,596 51534 , 146 1 . 53
2003 169498 ,459 81767 ,456 777310003 311720004 27220 , 133 51392 , 137 1 .43
(1 ) Includes debt service on all bonds secured by sewer system revenues .
(2) Includes all income of the Wastewater Fund pledged for the payment of bonds .
(3) Operating expenses less depreciation .
174 City of Fort Collins
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15C2=12 INFORMATION — BALANCES ON DEPOSIT (UNAUDITED)
The sewer revenue bonds are secured by an irrevocable pledge of a first lien upon net pledged revenues of the
Wastewater Fund . The sewer revenue bond ordinances provide that all gross revenues pledged to the sewer revenue
bonds will be set aside and credited to the Wastewater Fund and that such revenues will be deposited and applied in the
following order of priority:
Operation and Maintenance Fund . As a first charge on the Wastewater Fund , the bond ordinances require the City to
credit from time to time to the operation and maintenance fund revenue sufficient to pay the necessary and reasonable
current expenses of operating , maintaining , and repairing the sewer system . The balance on deposit in this fund as
of December 31 , 2003 is $670 ,233 ,
Principal and Interest Fund . The bond ordinances require the City, after making the payments required above, to apply
monthly to the principal and interest fund moneys sufficient in the aggregate to pay the principal of and interest on the
sewer revenue bonds . The balance on deposit in this fund as of December 31 , 2003 is $289,276 .
Debt Service Reserve Fund . The bond ordinances require the City to retain certain amounts in the debt service reserve
fund for the Series 1995 , Series 1996A Sewer Revenue Refunding and Series 2000 Sewer Revenue Bonds . However,
concurrently with the issuance of the 1996A Sewer Revenue Refunding and 2000 Sewer Revenue Bonds , a debt service
reserve insurance policy was issued that unconditionally guarantees the payment of principal and interest on these
bonds (up to and including the amount provided for in the reserve policy) in the event of nonpayment by the City.
Accordingly, the amount on deposit in the Debt Service Reserve Fund as of December 31 , 2003 was $0 .
Wastewater Utility Capital Reserve . The City has covenanted , so long as any debt service requirements of the City's
Sewer Revenue Bond , Series 1992 , remain unpaid , to maintain in the Wastewater Utility Capital Reserve and amount
equal to 17 % of the necessary and reasonable operation and maintenance expenses budgeted for the then-current fiscal
year. These amounts are to be maintained as a continuing reserve for payment of costs of necessary capital
improvements to the sewer system . The balance on deposit in this reserve was $ 19,535 , 115 as of December 31 ,
2003. This amount satisfies the 17% requirement indicated above for fiscal year 2003 .
In addition to the above, the bond ordinance established the following funds :
Excess investment Earnings Fund . This fund was established for the purpose of accumulating and paying rebatable
arbitrage earnings to the federal government under Sections 103 and 148(f)(2 ) of the Internal Revenue Code. As of
December 31 , 2003 the balance on deposit in this fund was $0 ,
Sewer Fund . The Sewer Fund , referred to in the bond ordinance , was established by Ordinance No. 67 , 1974.
Complete financial statements , which reflect all deposits and balances of this fund (herein referred to as the
"Wastewater Fund") are included in the financial section of this report.
Comprehensive Annual Financial Report 175
STORM DRAINAGE UTILITY ENTERPRISE
STORM DRAINAGE REVENUE BONDS
SEC RULE 15c2-12 INFORMATION --FEE REVENUES AND OPERATING HISTORY (UNAUDITED)
Collections
The following table sets forth the historical Storm Drainage Fund fee revenues for the years 1999 through 2003.
Storm Drainage Fund Fee Revenues (1999-2003)
1999 2000 2001 2002 2003
Storm drainage utility fee (operation
& maintenance component) $ 11776,038 $ 51742 ,046 $ 6,692,538 $ 91994,428 $ 11 , 197, 803
Storm drainage utility fee (capital
component) 31313,455 77 ,990
Storm drainage basin fees 757,660 656 ,836 972,866 628 ,586 764,455
Total Storm Drainage Fund
Fee Revenues $ 51847, 153 $ 61476 ,872 $ 7,665,404 $ 10,623 ,014 $ 11 , 962, 258
Ooeratina History of the Storm Drainaae Fund
The financial section of this Comprehensive Annual Financial Report contains financial statements of the City and the Storm
Drainage Fund as of and for the year ended December 31 , 2003. The following sets forth the operating history of the Storm
Drainage Fund for the years ended December 31 , 1999 through 2003:
Comparative Statement of Revenues, Expenses and Changes in Fund Equity
For the Years Ended December 31 , 1999 - 2003
1999 2000 2001 2002 2003
Operating Revenues
Charges for services $ 51089 ,493 $ 51820 ,036 $ 61692, 538 $ 919947428 $ 11 , 1971803
Operating Expenses
Administrative charge 771 ,754 837,721 1 ,000,512 967, 073
Personal services 11066 , 125 847 ,689 913,313 946,832 939, 727
Contractual services 3851977 367 ,852 2949190 304,710 334, 595
Commodities 49 ,510 32,612 35,964 31 ,014 43, 129
Other 359 ,425 178, 166 175,731 337,913 289, 679
Depreciation 803 ,843 10056,809 10295,982 11612,425 1 ,915, 677
Total Operating Expenses 2,664 ,880 3,254,882 3 ,552,901 41233 ,406 4 ,489, 880
Operating Income 2,424 ,613 2,565, 154 31139,637 51761 /022 6,7071923
Nonoperating Revenues (Expenses)
Other revenue 145 ,839 112,210 1 ,698 176,094 111720
Earnings on investments 9032909 13167,058 6210898 530 ,014 936, 111
Net increase (decrease) in
the fair value of investments (73 ,071 ) 58,760 530894 35 ,334 (76, 070)
Gain on sale of capital assets 254 ,254
Interest expense ( 11235,055) ( 10669, 182) (116991078) (2,253 ,719) (21303, 749)
Other expenses (27 ,418) (32, 041 ) (31 ,725) (83 ,849) (52r103 )
Total Nonoperating
Revenues (Expenses) (285,796) (363, 195) (11053,313) ( 1 ,341 ,872) ( 114845091 )
Income Before Contributions and
Transfers 26138,817 29201 ,959 2, 086,324 41419, 150 51223, 832
Capital Contributions 757, 660 6560836 972,866 6281586 764,455
Operating transfers In - - 104,020
Operating transfers out (41630) (63 ,039) (89,810) (57,500) (57,500)
753r030 5939797 883 ,056 571 ,086 810,975
Change in Net Assets 2,891 ,847 2,7950756 219699380 4,9907236 61034/807
Net Assets--Jan. 1 211401 ,610 247293,457 271215,054 30, 1847434 357174,670
Net Assets-December 31 $ 24,293,457 $ 279089,213 $ 301849434 $ 35, 1741670 $ 419209,477
176 City of Fort Collins
STORM DRAINAGE UTILITY ENTERPRISE
STORM DRAINAGE REVENUE BONDS
SEC RULE 15C2-12 INFORMATION (UNAUDITED)
Storm Drainage Utility Fee Structure
Storm drainage utility fees are imposed on every developed lot and parcel of land within the City and are payable
monthly. The storm drainage utility fee is designed to pay for the operation and maintenance of the City's storm
drainage system . The fee also pays for the design , right-of-way acquisition , and construction or reconstruction of
storm drainage facilities through out the City. The monthly storm drainage utility fee in effect at the end of 2003 for
a residential lot of approximately 8 , 600 square feet is $ 12 .96 and $25 . 93 for a commercial lot of approximately
8, 600 square feet . These amounts increased to $ 14 .26 and $28 . 52 respectively on January 1 , 2004 .
Storm drainage utility fees are billed through the City's consolidated monthly billing system , permitting the City to include
storm drainage utility fees on a customer's regular utility bill . If a customer fails to pay any utility fees, the City has the
authority to terminate utility service to the delinquent customer and to place a lien on the property for which the fees are
delinquent.
Approximately 83% of storm drainage utility billing accounts and 45. 5% of storm drainage revenues are attributable to
single family residential customers . 17 % of accounts and 54 . 5% of storm drainage revenues are attributable to multi -
family residential , commercial and industrial customers . Two customers of the storm drainage utility contribute 2 % or
more of the storm drainage utility's total monthly revenue - the school district with 4 . 7 % of total revenue and the City
municipal government at 2 % . Historically, the City collects over 99% of its billed monthly utility charges for storm
drainage .
Historic Net Pledged Revenues
Based on the 2003 revenues and expenditures of the Storm Drainage Fund and using the combined actual debt
service requirements of the City's outstanding storm drainage utility revenue bonds and the debt service
requirements of the bonds , the net pledged revenues available for debt service in 2003 would have covered the
combined average annual debt service requirements of the bonds approximately 2 .76 times and would have
covered the combined maximum debt service of the bonds approximately 2 .32 times .
Changes in Storm Drainage Fees
Since 1987 , the City has increased the overall storm drainage fees fifteen times . The average increase in the total fees
is as follows :
Year % Increase Year % Increase Year % Increase
1988 14 .9 1994 7 .3 2000 10 .0
1989 27 .0 1995 21 . 0 2001 9 . 3
1990 19 .4 1996 0 . 3 2002 45 .0
1991 16 . 3 1997 1 . 0 2003 10 .0
1992 20 . 7 1998 2 . 1 2004 10 .0
1993 7 . 5 1999 0 .0
A 7% increase is anticipated in 2005, and a 6% increase is projected for 2006 .
Prior to November of 1998 , storm drainage utility fees varied by basin depending on drainage problems and
improvements needed in each basin . Beginning in November of 1998 , the fees were assessed uniformly on a city-wide
basis and improvements are to be prioritized and constructed based on the needs of the City as a whole .
Comprehensive Annual Financial Report 177
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15C2-12 INFORMATION — CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED)
Customer Base
The water system serves a customer base that has grown as follows in the years 1994-2003 :
Years Total Water
(at December 31 ) Accounts
1994 26 , 266
1995 26 , 714
1996 271797
1997 28 , 655
1998 29 , 525
1999 30 . 387
2000 31 , 758
2001 32 , 101
2002 321273
2003 32 , 319
The City classifies its water customers according to several classifications . A breakdown of the accounts based on
such classifications being served as of December 31 , 2003 is set forth below :
Percent of Total
Classification Number of Accounts Accounts
Residential 30 , 616 93 , 55 %
Commercial & Industrial 29110 6 .45 %
Total 32 .726 100 , 00 %
The following table sets forth the ten largest customers of the water system , which in the aggregate accounted for
approximately 36 . 5% of total water usage during 2003 :
Water Usage Percentage of
Customer ( Millions of Gallons ) Total Water Usage
Industrial Customer 11249 15 ,09%
University 383 4 , 62
Industrial Customer 228 2 . 76
Water District 151 1 . 83
City Government 124 1 .49
School District 102 1 . 23
Health Services District 46 . 56
Mobile Home Park 42 . 51
Mobile Home Park 37 .45
Industrial Customer 36 . 43
178 City of Foil Collins
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15c2-12 INFORMATION — CUSTOMER BASE, RATE STRUCTURE , AND ENFORCEMENT
( UNAUDITED)
(Continued )
Water Rate Structure
The City's water rate structure is administered in substantial compliance with the "cost of service" method endorsed
by the American Water Works Association . Under the cost of service method , an effort is made to establish
equitable charges which reflect the true costs of serving various classes of customers .
In response to the area wide drought, the 2003 water rates were structured to provide stronger price incentives for
conservation . A 5-tier rate structure was adopted for single family residential and duplex customers and seasonal
rates were adopted for commercial and multi-family residential customers . The 2003 water rates were established
to recover a 6% increase in revenue after an assumed 15% system wide reduction in water use . There was no
water rate increase planned for 2004, however, City Council directed staff to develop a 4-tier rate that would reduce
the severity of the cost impacts for larger, single-family, and duplex residential users due to the 2003 5-tier rates .
City Council passed the rate ordinance in March , 2004 that, if approved , will be in effect for billings after May 1 ,
2004 .
The following water rates are in effect as of January 1 , 2004 . In addition to these rates , a 6% payment in lieu of
taxes (" PILOT") is added to all charges and paid to the City's general fund .
Metered Rates -- Residential
Monthly User Charges Effective through April 30 , 2004
( 1 ) Residential customers with one dwelling unit ,
a. Base Charges: Residential customers with one dwelling unit shall pay a base monthly charge of
$ 12 .00 .
b . Quantity Charges. Residential customers with one dwelling unit shall pay a monthly quantity
charge as follows :
For the first 7 ,000 gallons used per month at $ 1 . 68 per 1000 gallons
For the next 6 ,000 gallons used per month at $2 .24 per 1 ,000 gallons
For the next 7, 000 gallons used per month at $2 .80 per 1 ,000 gallons
For the next 13 ,000 gallons used per month at $3 .36 per 1 ,000 gallons
For all additional gallons used per month at $4 . 20 per 1 ,000 gallons .
(2) Residential customers with two dwelling units .
a. Base Charges. Residential customers with two dwelling units shall pay a base monthly charge
of $ 14 . 63 .
(continued)
Comprehensive Annual Financial Report 179
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15c2=12 INFORMATION — CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED)
(Continued)
Metered rates (continued)
b . Quantity Charges. Residential customers with two dwelling units shall pay a monthly quantity
charge as follows :
For the first 9 ,000 gallons used per month at $ 1 . 68 per 1 ,000 gallons
For the next 4 , 000 gallons used per month at $2 .24 per 1 , 000 gallons
For the next 7 , 000 gallons used per month at $2 ,80 per 1 , 000 gallons
For the next 13 ,000 gallons used per month at $3 .36 per 1 ,000 gallons
For all additional gallons used per month at $4 .20 per 1 ,000 gallons .
(3) Residential customers with more than two dwelling units .
a. Base Charges. Residential customers with more than two dwelling units shall pay a base
monthly charge of $ 12 .00 for the first dwelling unit and $4 .00 for the second and each additional
dwelling unit.
b . Quantity Charges. Residential customers with more than two dwelling units shall pay a monthly
quantity charge of $ 1 . 742 per 1 , 000 gallons used in the winter season months of November
through April . They shall pay a monthly quantity charge of $2 . 178 per one thousand ( 1 ,000)
gallons used in the summer season months of May through October.
Monthly User Charges Effective May 1 , 2004
( 1 ) Residential customers with one dwelling unit
a . Base Charges. Residential customers with one dwelling unit shall pay a base monthly charge
of $ 12 .00 .
b . Quantity Charges. Residential customers with one dwelling unit shall pay a monthly quantity
charge as follows :
For the first 7 ,000 gallons used per month at $ 1 .68 per 1 ,000 gallons
For the next 6 ,000 gallons used per month at $2 .02 per 1 ,000 gallons
For the next 7 ,000 gallons used per month at $2 .42 per 1 ,000 gallons
For all additional gallons used per month at $2 .90 per 1 ,000 gallons
(2) Residential customers with two dwelling units .
a . Base Charges. Residential customers with two dwelling units shall pay a base monthly charge
of $ 14 .63 .
b . Quantity Charges. Residential customers with two dwelling units shall pay a monthly quantity
charge as follows :
For the first 9,000 gallons used per month at $ 1 .68 per 1 ,000 gallons
For the first 4 ,000 gallons used per month at $2 .02 per 1 .000 gallons
For the next 7 ,000 gallons used per month at $2 .42 per 1 ,000 gallons
For all additional gallons used per month at $2 . 90 per 1 ,000 gallons
(3) Residential customers with more than two dwelling units
a . Base Charges. Residential customers with more than two dwelling units shall pay a base
monthly charge of $ 12 . 00 for the first dwelling unit and $4 . 00 for the second and each
additional dwelling unit .
(continued)
180 City of Fort Collins
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15c2 =12 INFORMATION — CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED )
(Continued)
b Quantity Charges. Residential Customers with more than two dwelling units shall pay a
monthly charge of $ 1 . 742 per 1 , 000 gallons used in the winter season months of November
through April . They shall pay a monthly quantity charge of $2 . 178 per 1 , 000 gallons used in
the summer season months of May through October.
Metered Rates — Nonresidential
( 1 ) Base Charges. Nonresidential customers shall pay a base monthly charge based on meter size as
follows :
Meter Size (inches ) Monthly Base Charge
3/4 $ 10 . 64
1 29 . 69
1 - 1 /2 80 . 73
2 121 . 66
3 185 . 56
4 291 . 31
6 565 . 11
8 998 .32
(2 ) Quantity Charges. Nonresidential customers shall pay a monthly quantity charge of $ 1 .48 per
1 , 000 gallons used in the winter season months of November through April . They shall pay a
monthly quantity charge of $ 1 .85 per 1 ,000 gallons used in the summer season months of May
through October.
(3 ) Charges for Excess Use. Monthly water use in excess of the amounts specified in the following
table shall be billed at $2 . 127 per 1 ,000 gallons used in the winter season months of November
through April . Monthly water use in excess of the amounts specified below shall be billed at $2 .659
per 1 ,000 gallons used in the summer season months of May through October .
Specified Amount
Meter Size inches) (gallons per month )
3/4 100 , 000
1 300 ,000
1 - 1 /2 625,000
2 112007000
3 11400 , 000
4 21500 , 000
Plant Investment Fees . The plant investment fee is a one-time charge assessed for the purpose of recovering the pro-rata
portion of the capital cost of the water system attributable to the customer . The PILOT referred to previously is not
assessed on plant investment fees . Proceeds of the plant investment fee are accounted for as contributed capital of the
water system , rather than as operating revenue . The City Council adopted the following plant investment fee schedule,
which took effect January 1 , 1999 .
(continued)
Comprehensive Annual Financial Report 181
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15c2-12 INFORMATION - CUSTOMER BASE , RATE STRUCTURE, AND ENFORCEMENT (UNAUDITED)
(Continued)
Residential
Dwelling Category Plant Investment Fee
Single Family $610 plus $0 .32 per square
foot of lot area
Duplex, Multi-Family, Mobile Home $490 per living unit plus $0 .27 per square foot
of lot area
Nonresidential
Water Meter Size
inches Plant Investment Fee
314 $ 41600
1 15 ,300
1 % 31 ,200
2 53 ,600
3 103 , 100
Greater than 3 Based on estimated peak day demand
Enforcement
The City's collections of water charges historically have been in excess of 99 % . Unpaid water charges constitute a
perpetual lien on the property to which service was delivered . Customers with delinquent active accounts are sent
delinquency notices after 38 days . The City may discontinue water and electric service on delinquent accounts .
Sometimes liens are filed while the delinquent customer is still an active account. Customers who have moved from the
address where service was supplied and left the account owing to the City are typically assigned to a collection agency.
Contributed Capital
Several significant categories of receipts of the Water Fund which are pledged to the payment of the Bonds are accounted
for as contributed capital rather than as revenue . The following table presents receipts of major categories of contributed
capital by the Water Fund for the past ten years :
Cash Anheuser- Anheuser-Busch Anheuser-Busch
Contributions Contributed Busch Plant Master Capacity Total
In Aid of In Lieu of Water Rights Investment Agreement Payments Contributed
Year Construction Water Rights Payments Fees Payments Capital
1994 67 , 776 181 , 361 145,581 214849038 334 ,043 83 , 149 31295 ,948
1995 38 , 399 254 ,448 157,202 21241 ,275 357 ,808 8%786 31138 ,918
1996 61 , 540 4619110 1711712 21623 ,455 382 ,208 98 ,073 31798 ,098
1997 462795 4467304 176 ,400 11973 ,473 3997827 100 ,751 31143 , 550
1998 631502 5153881 195 , 789 21831 ,789 422 ,605 111 ,825 40141 ,391
1999 155, 575 892 , 775 207 ,605 31564, 144 441 ,238 134 ,778 5 ,3969115
2000 749 , 706 11937 , 344 222,553 2 , 6847818 4673579 144 ,482 6 ,2061482
2001 161 , 750 317949884 238, 577 31573,347 491 ,082 154 ,885 81414 ,525
2002 100,014 21248 ,992 255 , 754 2 ,754,287 524 ,211 166 ,037 61049 ,295
2003 61 ,629 21939 ,693 177,991 311232052 655 ,526 274 , 169 71232 ,060
182 City of Fort Collins
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15c2=12 INFORMATION -wCOLLECTIONS AND OPERATING HISTORY (UNAUDITED)
Collections
The following table sets forth the historical Water System user rates, plant investment fees , other fees and charges , and
investment earnings:
Water System Income (1999-2003)
1999 2000 2001 2002 2003
User charges for services $ 17,479 ,891 $ 20 ,051 , 104 $ 200893,357 $ 21 , 184,847 $ 22,3071739
Plant investment fees 315640144 21681 ,952 3,538,955 21719, 895 2/ 7290645
Other fees & charges 218650244 41324,855 68006,674 47050,428 5, 107, 257
Investment earnings 21159,Oi9 1 , 985,259 11788,938 11549,276 960,218
Total Water System Revenue $ 26,068,298 $ 29 ,043, 170 $ 3212277924 $ 290504,446 $ 31 , 104,859
Operating History of the Water Fund
The financial section of this Comprehensive Annual Financial Report contains financial statements of the City and the
Water Fund as of and for the year ended December 31 , 2003 . The following sets forth the operating history of the
Water Fund for the years ended December 31 , 1999 through 2003 :
Comparative Statement of Revenues , Expenses and Changes in Fund Equity
For the Years Ended December 31 , 1999 - 2003
1999 2000 2001 2002 2003
Operating Revenues
Charges for services $ 177479,891 $ 20,051 , 104 $ 20t893,357 $ 21 , 184, 847 $ 2213070739
Operating Expenses
Administrative charge - 1 , 915 ,037 21092, 750 2/4887527 213591878
Personal services 41446,949 3,883,226 4, 124,863 413180081 41350,621
Contractual services 1 ,905,929 1 ,750,256 1 ,874 ,606 11988,625 31085,480
Commodities 111011788 1 ,033,015 9851714 11000, 692 941 ,356
Other 2, 1220639 12972,477 20021 , 133 21090 ,733 211940825
Depreciation 4; 152 , 107 40388 ,688 41798,421 419147341 4,996, 089
Total Operating Expense 13,729,412 14,9421699 158897,487 161800,999 17,928,249
Operating Income 39750,479 51108,405 4 ,995 ,870 413831848 4,3790490
Nonoperating Revenues (Expenses)
Other revenue 11033 ,273 8002325 777,475 7101441 5980670
Earnings on investments 2, 1590019 11985,259 11788,938 1 ,549,276 960,218
Net increase (decrease) in
the fair value of investments (2470105) 2400146 346, 323 162,713 (244,015)
Gain(loss)on fixed asset sales 353 ,629 10, 587 61172
Interest expense (3,6091832 ) (3 , 410,726) (31135 ,666) (2,2041759) (2,3011472)
Other expenses (649551 ) (64,907) (647907) (307,091 ) (46 , 751 )
Total Nonoperating
Revenues (Expenses) (729, 196) (449, 903) 650792 (78,833) (11027, 178)
Income Before Contributions
Transfers 31021 ,283 476580502 51061 , 662 41305,015 3 ,352, 312
Captial Contributions 51396, 115 60206,482 80414 ,525 6,049, 295 7,232,060
Operating transfers out (250440) (191 ,440 ) (145 ,290) (693000) (69,000)
51370,675 6, 0159042 8,269 ,235 51980,295 7, 1631060
Change in Net Assets 81391T958 10,6731544 13,3302897 10 ,285, 310 10,515,372
Net Assets--Jan , 1 102,303, 923 110,695,881 121 ,919,656 1501837 ,810 161 , 1230120
Net Assets--Dec. 31 $ 110,695,881 $ 121 , 369,425 $ 1351250r553 $ 161 , 1231120 $ 171 ,638,492
Comprehensive Annual Financial Report 183
WATER UTILITY ENTERPRISE
WATER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998
SEC RULE 15c2-12 INFORMATION - DEBT STRUCTURE OF THE WATER FUND (UNAUDITED)
Debt Structure of the Water Fund
As of December 31 , 2003 , the Net Revenue of the Water Fund serviced the following obligations:
Originally Outstanding
Name of Issue Authorized Principal
General Obligation Water Bonds
Series 2002A $ 197255,000 $ 1694100000
Water Revenue Bond , Series 1997 10 , 1251300 7 , 679 , 177
Water Revenue Refunding and
Improvement Bonds , Series 1998 31V5801000 261135,000
Water Revenue Bond , Series 1999 479981395 4,092 , 809
Capital Lease Obligation , 1999 333 , 700 73 ,877
Total $ 66 ,292,395 $ 54,390, 863
184 City of Fort Collins
TRANSPORTATION SERVICES SPECIAL REVENUE FUND
HIGHWAY USERS TAX REVENUE REFUNDING BONDS SERIES 1998
SEC RULE 15c2-12 INFORMATION --HISTORICAL STATE FUND REVENUES (UNAUDITED)
City's Historical State Fund Revenues
The City's revenues from State Fund distributions for the calendar years indicated were
as follows :
Year Receipts % Increase
1994 $ 21041 ,881 5 . 1 %
1995 21171 , 192 6 .3%
1996 213357766 7.6%
1997 2 $ 77 ,044 10.3 %
1998 21889 ,902 12 . 1 %
1999 31050, 174 5 . 5 /a 0
2000 30182 ,852 4 .3%
2001 3 , 264 ,212 2 .6 %
2002 31282 , 312 0 .6%
2003 31184 , 979 -3 .0%
Source: City of Fort Collins Accounting Division
Comprehensive Annual Financial Report 185
DDA TAX INCREMENT REVENUE AND REFUNDING BONDS
REVENUE BOND COVERAGE
LAST TEN YEARS (UNAUDITED)
DOWNTOWN DEVELOPMENT AUTHORITY
TAX INCREMENT REVENUE REFUNDING BONDS
Base Valuation Collection Rate
Total Incremental Tax Increment
Tax Budget Assessed Base Incremental Ad Valorem Revenues Collection
Year Year Valuation Valuation (1 ) Valuation (2) Taxes Levied Collected Rate (4)
1994 1995 $ 34, 059, 700 $ 24,4543210 $ 91605 ,490 $ 901 , 702 $ 883 ,727 98.01 %
1995 1996 38 ,614 , 850 271484,960 11 , 129,890 1 ,009r232 989,617 98 .06
1996 1997 409239, 025 271484, 955 12 ,754, 070 11200 ,874 11179,210 98.20
1997 1998 45,246,900 30,649, 130 14,597, 770 11331 ,708 11303, 769 97. 90
1998 1999 48,2202070 30r1801790 18,039,280 1 ,6470606 12614,654 98.00
1999 2000 5611931740 34, 9203370 21 , 273 ,370 1 ,834 ,913 1 ,800 ,013 98. 10
2000 2001 5527047050 (3) 3418950490 202808,560 11920,014 1 , 881 ,614 98.00
2001 2002 62 ,4519390 391107,570 233343 ,820 2 , 1111614 2,074,822 98.26
2002 2003 68 ,9411400 38 ,944, 210 29,997, 190 21702 , 941 21643r643 97. 81
2003 2004 70, 187 , 630 39,370,490 30,8170140 20792, 356 999,647 35.80 (5)
(1 ) The base valuation is recalculated by the County Assessor during any year in which there is a general
reassessment of property.
(2) Taxes generated from the incremental valuation are collected in the following year.
(3) Decrease in assessed valuation primarily attributable to one business relocating outside of District.
(4) The County Treasurer generally allocates delinquencies to levies made against the base valuation rather
than the incremental valuation and remits to the City for deposit in the Tax Increment Fund 100% of the
taxes levied less the County Treasurer's 2% collection fee .
(5 ) Through April 30, 2004
Source: County Assessor's Office
CALCULATION OF THE RATIO OF PLEDGED
REVENUES TO DEBT SERVICE REQUIREMENTS OF THE BONDS
Tax Increment Debt Service Requirements
Revenues Principal Interest Total Coverage (1 )
1994 813 ,531 - 731 ,798 7311798 1 . 11 %
1995 883 ,727 400 ,000 726,798 11126,798 0. 78
1996 989 ,617 450,000 706,023 16156,023 0. 86
1997 1 , 179 ,210 760,000 6771860 10437,860 0.82
1998 11303 ,769 830,000 634,585 1 ,464, 585 0 .89
1999 19614,654 6506000 5890048 11239,048 1 .30
2000 11800,013 720,000 5487820 1 ,268 ,820 1 .42
2001 118817614 640 ,000 450,450 100907450 1 .73
2002 21044 ,871 1t005,000 336, 160 113414160 1 .52
2003 2 ,438,656 12080 ,000 292, 800 113726800 1 .78
(1 ) The Bonds are also secured by a contingent pledge of the Sales and Use Tax Revenues.
186 City of Fort Collins
MANAGEMENT REPORT
FOR THE
CITY OF FORT COLLINS, COLORADO
December 31 , 2003
Honorable Mayor, City Council
Members and City Manager
City of Fort Collins
Fort Collins, Colorado
CONFIDENTIAL
For Management Use Only
Honorable Mayor, City Council Members, and City Manager:
We have completed our financial statement audit of the City of Fort Collins ' December 31 , 2003
financial statements . As part of our service, we evaluated the internal control structure and
various policies and procedures in place. Our evaluation is not designed to detect all control
weaknesses or irregularities that may exist, and accordingly, we do not express an opinion on the
internal controls of the City.
This Management Report is a product of our evaluation. In this report, we include a financial
comparison section depicting some ratios in a graphical format. We also include a segment of
areas to consider to further enhance Fort Collins ' financial operations ; and a section where we
highlight positive observations made during the audit.
Honorable Mayor, City Council
Members, and City Manager
City of Fort Collins, Colorado
Page 2
POSITIVE OBSERVATIONS NOTED
On the following pages, we review areas where you have enhanced your internal control
structure and financial policies and procedures over the past year.
A. INFRASTRUCTURE REPORTING
In accordance with Governmental Accounting Standards Board (GASB) ,
Statement No . 34, the City successfully completed the task of identifying,
valuing, and adding all streets, right-of-ways, and bridge infrastructure to the
financial records . This was an arduous task and required the cooperation of other
City departments, specifically engineering, to complete.
We commend the engineering and finance departments for their effort to complete
the street infrastructure project within the required timeline.
B. GASB 40 : NEW INVESTMENT DISCLOSURE REQUIREMENTS
For the year ended December 31 , 2003 , the finance department also implemented
GASB Statement No . 40, Deposit and Investment Risk Disclosures. This standard
requires that the City provide different disclosures related to deposits and
investments , such as custodial credit and foreign currency risk, as well as
disclosing the City ' s investment policy.
t& BONDI & CO. LLC
CERTIFIED PUBLIC ACCOUNTANTS
MANAGEMENT CONSULTANTS
Honorable Mayor, City Council
Members, and City Manager
City of Fort Collins, Colorado
Page 3
The City was not required to implement this standard until December 31 , 2005 .
We commend the finance department for acting as a leader and early
implementing this standard.
C. TAX SOFTWARE UPDATES
The City ' s finance department worked with Vertex, a national tax software
company, to make sure Vertex was keeping up with all the tax law changes . Fort
Collins was a leader nationally to make sure Vertex was doing what it was
supposed to do . Other cities acknowledged the leadership displayed by your
finance department, which benefited municipalities across the country.
FINANCIAL COMPARISONS
The following graphs illustrate several aspects of the City' s overall financial operations
and performance . We obtained the information for the following graphs from the City' s
current and prior year comprehensive annual financial reports . We obtained information
for other cities from their respective 2002 audited financial statements .
The first graph displays the number of days that the City of Fort Collins ' general fund
could operate without any additional revenue. This ratio of 188 days of expenditures in
reserve at December 31 , 2003 has improved from the 2002 amount of only 158 days .
t& BONDI & CO. LLC
CERTIFIED PUBLIC ACCOUNTANTS
MANAGEMENT CONSULTANTS
Honorable Mayor, City Council
Members, and City Manager
City of Fort Collins, Colorado
Page 4
Days of Operation in Reserve - General Fund
80 , 000 $250
705000 Fund Balance
60, 000 WE $200
(x 1000)
50, 000 $ 150 General Fund
40, 000 Expenditures
30, 000 $ 100 (x1000)
2000 $ 50 Days of Operation
10, 000 in Reserve
2000 2001 2002 2003
2000 2001 2002 2003
Fund Balance (x1000) $ 30, 165 $ 34, 814 $ 31 , 635 $ 36, 797
General Fund
Expenditures (x1000) 61 , 777 631443 73 , 198 71 , 298
Days of Operation in
Reserve $ 178 $ 200 $ 158 $ 188
The next chart in our report compares the days in operation for the City of Fort Collins to
other Front Range communities . Fort Collins ' reserve of 188 days of operations far
surpasses that of Westminster and Thornton, however, the City of Northglenn has over
one year' s expenditures in their general fund reserve .
t& BONDI & CO. LLC
CERTIFIED PUBLIC ACCOUNTANTS
MANAGEMENT CONSULTANTS
Honorable Mayor, City Council
Members, and City Manager
City of Fort Collins, Colorado
Page 5
Days of Operation in Reserve - General Fund - Comparison
0 Fund Balance
$ 805000 450 (x1000)
$ 70, 000 400
$60, 000 350
$ 505 000 300 � General Fund
$405000 250
$30, 000 200 Expenditures
4, 150 (x1000)
$20, 000 100
$ 109 000 50 � Days of Operation
ti i
$ -o o in Reserve
rA
U ai °
o
w �
Fort Collins Broomfield Northglenn Thornton Westminster
Fund Balance (x1000) $ 36, 797 $ 15 , 398 $ 21 , 604 $ 15 , 012 $ 13 , 473
General Fund
Expenditures (x1000) $ 71 , 298 $ 41 , 239 $ 20, 222 $ 54, 300 $ 62, 761
Days of Operation in
Reserve 188 136 390 101 78
The next two graphs provide an analysis of the City of Fort Collins ' Recreation and
Public Safety expenditures per citizen. These trend analyses document expenditures over
a five-year term. In addition, we have provided a comparison to other Colorado cities .
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For the most part, recreation expenditures per citizen have increased steadily over the
past five years. From 1999 , these expenditures are up 7% .
Recreation Expenditures per Citizen
1409000 $200 � Recreation
1205000 $ 190 Expenditures
1005000
$ 180 (x 1 , 000)
WON
$ 170 � Citizens
$ 160
60, 000
$ 150
401000 $ 140 Expenditures per
201000 $ 130 Citizen
$ 120
1999 2000 2001 2002 2003
1999 2000 2001 2002 2003
Recreation Expenditures
(x19000) $ 189115 $ 19, 570 $ 20, 680 $ 20, 744 $ 229423
Citizens 112 , 912 118 , 652 122, 377 1 126, 848 1 130, 566
Expenditures per Citizen $ 160 $ 165 $ 169 $ 164 $ 172
In comparison to other Colorado communities, the City of Fort Collins has spent more on
recreation than most.
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Recreation Expenditures per Citizen - Comparison
1409000 $500 Recreation
1205000 $450 Expenditures
1005000 $
$35050 (x11000)
805000 $300
605000 $250 0$200 Citizens
405000 $ 150
205000 $
1000
-o $ f Expenditures
per Citizen
o
U o o
o
� o
o
w � �
Fort Collins Broomfield Boulder Thornton Westminster
Recreation
Expenditures
(x 1 , 000) $ 22, 423 $ 69565 $ 28 , 765 $ 16, 770 $ 13 , 462
Citizens 130, 566 469419 1039000 95 , 956 104 , 948
Expenditures per
Citizen $ 172 $ 141 $ 279 $ 175 $ 128
The final two graphs provide an analysis of the City of Fort Collins ' Public Safety
expenditures per citizen over the past five years. Public safety expenditures per citizen
have increased 20% from 1999 .
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Public Safety Expenditures per Citizen
1401000 $ 300
0 Public Safety
1201000 _ $250 Expenditures
100 , 000 (x 1000)
$200 Citizens
80 , 000
$ 150
60 , 000
405000 S 100 Expenditures per
Citizen
20 , 000 $ 50
$
1999 2000 2001 2002 2003
1999 2000 2001 2002 2003
Public Safety
Expenditures
(x1 , 000) 1 26, 480 1 30, 249 1 329071 359669 365764
Citizens 112, 912 118 , 652 122, 377 126, 848 1 130, 566
Expenditures per
Citizen $ 235 $ 255 $ 262 $ 281 $ 282
Public Safety expenditures compared to other Front Range communities are strong. Only
the City of Boulder is higher than the City of Fort Collins .
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Public Safety Expenditures per Citizen - Comparison
140, 000 $500 Public Safety
120, 000 $450 Expenditures
100, 000 $400 (x 1000)
$350
8000 $300 0 Citizens
605000 $250
W/ $200
405000 $ 150
205000 $ 100
$50 } Expenditures
$ per Citizen
U o o
w
z
Fort Collins Northglenn Boulder Thornton Westminster
Public Safety
Expenditures
(x1 , 000) $ 36, 764 $ 6 , 501 $ 329441 $ 105153 $ 20, 257
Citizens 1301566 37 , 040 1031000 955956 1045948
Expenditures per
Citizen $ 282 $ 176 $ 315 $ 106 $ 193
AREAS TO CONSIDER FOR FUTURE ENHANCEMENT
There are several areas we believe you should consider to further enhance your financial
operations. We list these items in the following section and intend them to help you
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improve your operating efficiency and internal control structure. We hope you accept our
comments in the constructive manner intended.
I . CAPITAL ASSETS
The infrastructure capital assets of the Fort Collins Utilities are not maintained on
the PeopleSoft Enterprise One software system. Instead, these assets are added to
the system in one lump sum, each year, to the prior years ' balance . This process
makes it nearly impossible to identify individual assets as well as to remove old
assets when retired or sold. In addition, it is inefficient to use different systems
throughout the City to account for capital assets .
We recommend that the Fort Collins Utilities work with the finance department to
add the utility infrastructure assets to the PeopleSoft system.
In general, we continue to believe centralized internal controls, including
centralized use of City financial software by all divisions and departments, will
best serve the City of Fort Collins .
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II. PROCUREMENT CARDS
The purchasing department issues and administers Procurement cards to the other
departments. Service area directors, department heads and other supervisors
determine which employees they want to have credit cards and the credit limit
assigned to that individual. The supervisor then submits a request to the
purchasing department, where they review the request and evaluate the
reasonableness of the credit limits .
Once approved, the purchasing division does not periodically review credit limits
to determine if they should adjust these limits . Instead, the division adjusts credit
limits upon request only. The purchasing division sends out monthly a listing of
the details of all charges . The department heads approve these listings and
forward to accounting for payment. The individuals are required to maintain all
supporting documentation for their charges, which for some groups , is maintained
by a supervisor or by administrative staff.
We recommend that the purchasing division perform periodic surprise audits of
departments and individuals to ensure that they are keeping the required
supporting documentation. Support kept should meet reasonable substantiation
requirements at a minimum. In addition, the purchasing division should perform
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a periodic review of credit limits , where necessary, to limit the Citespotential for
losses .
III. MUNICIPAL COURT
A. Write-Offs
During our review of internal controls at the municipal court, we
determined that the controls surrounding write off s of tickets could be
enhanced. It appears that the same person has the ability to collect the
payment of the ticket in the Justice Systems Incorporated (JSI) system and
to dismiss the ticket. We did not find any instances where staff
fraudulently wrote off tickets, however, it is important to enhance controls
to ensure that someone does not take advantage of this weakness.
To rectify this situation, we recommend the municipal court either
segregate these duties or review quarterly trend analyses of the number of
tickets dismissed compared to the clerk who dismissed the ticket. This
will allow management to identify any unusual relationships and
investigate discrepancies .
B. RESTORE Program
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The municipal court is involved in the collection of fees for the RESTORE
juvenile program. During our review of court procedures, we noted that
the program does not have formal policies and guidelines detailing how
the funds may be spent. The program is funded by participation fees and
is not considered City revenue . However, because various City
departments are involved in the program, there is a fiduciary duty to
monitor and expend funds as would be intended by the participant and the
public .
During review of the program transactions for the year, total revenue was
roughly $6,650, while the cash balance at the end of the year was
approximately $4,900, indicating that staff may not be spending funds
timely.
We recommend that management implement formal policies and
procedures, including_spending_guidelines , to prevent the misuse of funds .
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IV. FEDERAL GRANTS
A. Schedule of Expenditures of Federal Awards
To prepare the annual Schedule of Expenditures of Federal Awards
(SEFA), the finance department assumes that expenditures are to equal
revenues thus they record the amounts billed to the grantor, as
expenditures . For selected grants, the most significant of which are the
highway transit grants, if staff does not bill for reimbursement, then
expenditures are not recorded in the SEFA.
Due to this gap in billing, the finance department understated the prior
year schedule of federal awards by approximately $ 175 ,000 . As part of
the audit process, we asked finance staff to confirm that amounts recorded
at zero dollars on the final SEFA were correct. In this process, the City
found a difference in grants expenditures of approximately ($40,000) and
found another difference of about $200, 000 .
We recommend that staff charge all expenditures to a specific federal
grant code in the general ledger. This will allow the City to prepare the
Schedule of Expenditures of Federal Awards based on actual expenditures .
B. Review of Grant Reports
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Each individual department' s budget personnel prepare grant billing
reports. The finance department does not have the opportunity to review
these reports or agree them to the general ledger, before submission to the
granting agency.
Our concern is that there may be errors in the reports that the central
accounting staff could detect if they reviewed these billings . Additionally,
oversight by the finance department of the reporting process may result in
timelier request of funds.
We recommend that management require that the finance department
review all billings before submission to the jZrantor agencies ,
C. Timely Request for Reimbursement
On the financial schedule of federal awards, expenditures were
approximately $ 1 ,000,000 more than revenues received. At September
301 2003 , we noted approximately the same difference. By not requesting
grant funds on a timely basis , the City is subsidizing the federal
government for interest earnings it loses for fronting those funds .
We recommend that the Ci . request reimbursement for grant related
expenditures on a timely basis .
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D . Indirect Costs
The City is incurring indirect costs, including accounting costs, human
resources costs and purchasing costs, for the processing of federal grants .
None of these costs are recouped through either direct or indirect charges
to the grants. We believe that the City is missing out on potential grant
revenue by subsidizing indirect costs .
We recommend that the finance department investigate the cost/benefit of
preparing an indirect cost plan that allows the City to charge these types of
costs to the _ rg ant•
E. Budget vs. Actual Expenditures
Staff charges payroll costs to the Recreation Works grant based on
predetermined percentages at the start of the fiscal year. Staff does not
review or adjust those percentages adjusted during the year. This process
may result in non-compliance with OMB A- 87 , which indicates that the
allocation of payroll costs cannot be made on budgeted amounts and must
be adjusted to actual time spent on a periodic basis .
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We recommend that staff allocate payroll costs based on budgeted
amounts at the start of the year, and then revise these amounts quarterly or
semi-annually based on time and motion studies .
F. Subrecipient Monitoring
Through the drug task force, the City is passing federal funds to various
other local governments, including Colorado State University. The City
has no formal mechanism for monitoring these subrecipients . Based on
this information, the City may not comply with federal subrecipient
guidelines . In addition, if the subrecipient incorrectly spends the funds ,
then the City may be responsible for repaying those funds .
We recommend that management establish a policy and a system to
monitor all payments to subrecipients .
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V. NON-LAPSING PROJECT TRACKING
For non-lapsing appropriations, total expenditure amounts are reported in a single
line item, perhaps "contingency" or "other expense" . The City does not budget
for these projects on a line basis. Project budgets are given to the project manager
to allocate across the program, as they deem necessary.
The majority of the time, the entire budget is left in the "contingency" line item
and never allocated to various expense lines. We further determined that there are
not adequate procedures in place to determine if a project is within budget, as
staff does not review expenditures until after the City issues payment. This
process does not provide for the ability to track individual line items .
We recommend that the City use detailed line item budgets for non-lapsing
appropriations .
VI. PAYCHECK DISTRUBUTION
The City could enhance internal controls to determine if there are "ghost"
employees on you payroll. An annual employee pay out where every employee
must physically pick up their paycheck with a valid photo ID from the finance
department, would identify any fake employees receiving a paycheck.
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Although we did not find any indication of "ghost" employees during our testing,
it may be beneficial to the City to perform an annual pay out to those employees
that receive paper checks . It would be best to perform this procedure during the
summer months when the number of City employees is at its highest.
We recommend that the City perform an annual "pay out" for all employees to
verify that there are no fictitious employees .
VII. BOOKKEEPING ITEMS
A. Insufficient Funds Checks
NSF checks on all accounts are funneled through the First National Bank
Check Clearing account. This allows the City to track and manage these
checks out of one account versus multiple accounts . The bank returns the
original checks to the utility department for staff to research and collect
funds . When the returned checks do not relate to utility billing, the utility
department must contact the bank to locate the bank where the deposit was
made. From there, the Utility department determines to which department
the deposit belongs . The finance staff then notifies the department of the
NSF check so they can try to recover the funds .
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We recommend that the Finance department use unique stamps at each
cash collection site to expedite the process of determining where a
customer cashed the bad check. This should make this process more
efficient and less time consuming for all those involved.
B. Duplicate Checks
We were able to import the City ' s master payroll file into our data
extraction software and perform a series of tests. We found numerous
occasions where the accounting system issued the same check number
twice . Although many of the instances were an issuance and a
corresponding void, there were several occasions where staff issued an
"out of line" using the last check number of the previous check run.
Duplicate check numbers are an indication of system weaknesses and
demonstrate poor controls over the disbursement process . The City loses
valuable tracking and accuracy of items paid out.
We recommend that the City determine if PeopleSoft Enterprise One has
functions in place to alert a user that a check number has already been
issued. This system control would eliminate duplicate check issuance.
CONCLUDING COMMENTS
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We appreciate the opportunity to work as a part of the City ' s financial team. The success
of the audit is dependent upon the staff of your City. We appreciate all of the help from
the finance department, especially Alan Krcmarik and Chuck Seest. We look forward to
continuing our relationship with the City of Fort Collins .
If you have any comments or questions regarding the this report, or the audit report,
please contact Bert Bondi, Julia Stone, Jim Rae, Jennifer Todd or Mike Leonard at
303 . 799 . 6826 or at bbondikbondico . com.
May 7 , 2004 BONDI & Co. LLc
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