HomeMy WebLinkAboutAgenda - Mail Packet - 7/16/2013 - Council Finance Committee & Ura Finance Committee Agenda - July 15, 2013Council Finance Committee & URA Finance Committee
Agenda Planning Calendar 2013
RVSD 7/11/13 kw
Jul. 15 TOPIC TIME WHO
CFC
RMI Review – Status Financing & RMI Performance 40 min M. Freeman
FCLWD Agreement 30 min L. Smith
Auditor 2012 Report 30 min K. Smith
Calendar Review – What Should Come to CFC? 15 min M. Beckstead
Assistance Package for Local Company – Questions on Memo 5 min S. Kendall
URA
Aug. 19 TOPIC TIME WHO
CFC
Transfort Business Review 60 min Ravenschlag
Review Utility Rates 45 min L. Smith
2014 Budget Revisions – in advance of Sep 10th work session 30 min L. Pollack
Debt Policy Update 30 min J. Voss
URA The Summit (Capstone) update 15 min M. Bolin
Sep. 16 TOPIC TIME WHO
CFC
Block 32 Master Plan Review 30 min K. Mannon
Utilities Building/Financing 30 min J. Voss/
L. Smith
Revenue Policy Review 30 min J. Ping-Small
Budget Policy Review 30 min L. Pollack
URA
Oct. 21 TOPIC TIME WHO
CFC
New Fees Review – In advance of Nov 26th work session 45 min J. Ping-Small
Audit Findings and Recommendations: Corrective Actions 15 min J. Voss
URA
Future Council Finance Committee Topics:
• RFP for Audit Services, 5 year contract (August 2013)
• Policy review – Reserve/Fund Balances (QIII 2013)
• Revenue Implications of Annexation
• Financial Management Policy Reviews during 2013 – Quarterly Commitments
Future URA Committee Topics:
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
AGENDA
Council Finance & Audit Committee
July 15, 2013
10:00 to noon
CIC Room – City Hall
Approval of the Minutes from the June 17, 2013 Meeting
1. RMI Review—Status Financing & RMI Performance 40 minutes M. Freeman
2. FCLWD Agreement 30 minutes L. Smith
3. Auditor 2012 Report 30 minutes K. Smith
4. Calendar Review—What Should Come to CFC? 15 minutes M. Beckstead
5. Assistance Package for Local Company—
(Questions on Memo) 5 minutes S. Kendall
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Draft of Minutes
6/17/13
10:00 to 12:00
CIC Room
Council Attendees: Mayor Karen Weitkunat, Ross Cunniff, Bob Overbeck
Staff: Darin Atteberry, Mike Beckstead, Craig Foreman, Marty
Heffernan, Mindy Pleiger, Lawrence Pollack, John Voss,
Wendy Williams, Katie Wiggett
Others: Kevin Jones (Chamber of Commerce)
Approval of the Minutes of March 18, 2013
Bob Overbeck moved to approve the minutes for the May 20, 2013 meeting. Ross Cunniff seconded the
motion. Minutes were approved unanimously.
Capital Expansion Fees
Mike Beckstead presented proposed updates to the City’s Capital Improvement Expansion Fees, fees
that require new developments to pay a proportionate share of infrastructure costs or to “buy-in” to the
system. In the fall of 2012, staff initiated a comprehensive review of the Capital Improvement
Expansion Fees that were first implemented in 1996. The review was to ensure that the original
methodology was still applicable and to confirm that the fee structure was in line with the current level
of service. To assist with the review, Staff contracted with Duncan Associates. The fees included in the
study are:
• Neighborhood Parks
• Community Parks
• Trail Fee - NEW
• Fire
• Police
• General Government
While the fees have been updated annually for inflation according to the Denver-Boulder-Greeley
Consumer Price Index, there has not been a comprehensive review of the study since implementation.
With Duncan Associates, Staff reviewed the methodology and updated the fees. The outcome of the
study retains the basic methodology of incremental expansion but recommends minor changes to some
of the inputs. The fees have all been updated based on current level of service which factors in current
capital assets for all fees. In addition, trails have been added as a possible fee.
2
What’s driving the increase in the updated fees?
• Updated inventory of capital assets which includes facilities and vehicles
• Current level of service has increased based on updated infrastructure information
• Updated household data which resulted in less variation between small and large units then
previous study
The biggest impact on fees is driven by updated data from the latest census on household population by
size of the dwelling. New data indicates there is less variation between the smaller and larger dwellings
or said another way, an increase in the number of people in small units and a decrease in the number of
people in larger units. The impact of this data on residential fees is an increase in fees to smaller units
and a decrease in fees to larger units for Neighborhood and Community Park fees.
Another major change is the addition of a trails fee. The trail fee is based on the current cost of the
roughly 31 miles of existing trails across the City. The fee will provide funding for building out the paved
trail system. The City is planning to build an additional 30.7 miles of trail at an estimated cost of 24
million dollars. Currently, the Conservation Trust Fund from the state Lottery provides about 1.2 million
dollars annually. Of this amount, $470,000 is allocated in the budget for new trails and $730,000 is
allocated to parks and trail maintenance. The Natural Areas program also provides $350,000 annually
for new trails, but this funding may not be available after 2014 because it may be needed for Natural
Area operations. This means, without the Trail fee or other new funding, it will take 50 years to
complete the trail system. It should also be noted that the Conservation Trust Fund is scheduled to
sunset in 2024 unless it is extended.
Staff presented these updated fees at CFC in January 2013 and to City Council at a Work Session on
February 12, 2013. Staff was given direction to conduct additional public outreach. The outreach
revealed that, while Boards are comfortable with the methodology, they do not support the fee
increases, especially for smaller units.
One option for lessening the effect of the increased fees is by slowing phasing in the updated fees over a
few years. The Mayor asked that the Council be presented with the option of phasing in the fees.
The Mayor was concerned that looking at both the issue of updating the fees and the issue of adding a
new trail fee may be too much to consider at one time. She suggested breaking up the presentation
when presenting to Council in August, so the Council can consider the issues separately. The Mayor also
asked that staff include a short, generalized list of “what the fees are based on” as well as a similar list of
“what the fees can/will be used for” within the AIS. Staff will make the changes.
RFP Auditor Selection
Mike Beckstead said that, five years ago when the City selected McGladrey as their auditor, the Council
Finance Committee played an active part in the RFP selection process. He asked if Council Finance
would like to continue to be a part of that selection, helping in this year’s rebidding of the contract. The
committee’s decision to participate in the process was unanimous. A special meeting of the Council
Finance Committee will be called in August for the selection.
2012 Fund Balance Status
John Voss presented the status of the City’s fund balances and working capital. He summarized
availability by each fund in the City Budget. The balance within each Fund was categorized into Non-
3
spendable, Restricted, Committed and Assigned. Within each of these categories, funds were further
broken down by Appropriated or Scheduled, Available but with Some Constraints and Available for
Nearly any Purpose.
Mike noted that the General Fund increased by $15 million from 2011 to 2012. The increase is due to
both a $7 million transfer from the Sales and Use Tax Fund as well as strong revenue in 2012. John Voss
noted that the Transit Fund will include the Mason BRT once that is underway.
Council Direction / Next Steps
The Council Finance supports the Capital Expansion Fees Update. It will be brought to Council on August
20.
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Mike Beckstead, Chief Financial Officer
Presenter: Mike Freeman, CEO for Rocky Mountain Innosphere (RMI)
SUBJECT FOR DISCUSSION: RMI Review—Status Financing & RMI Performance
EXECUTIVE SUMMARY
City Council has asked for an update on Rocky Mountain Innosphere’s financing status and
performance. Mike Freeman, CEO for RMI, will present an overview of RMI’s current status.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
None. This presentation is simply an update.
BACKGROUND/DISCUSSION
The Rocky Mountain Innosphere (RMI) began as the Fort Collins Virtual Incubator in 1998,
supported by the City of Fort Collins through the URA. Today, RMI provides a wide array of
services to start-up companies in Fort Collins, including the physical office and wet lab space of
the newly constructed facility. Because of the City’s investment in RMI, City Council requests
business updates from RMI.
ATTACHMENTS
1. City Council Finance Committee Update Presentation
2. 2012 Annual Report
3. Board of Directors and Staff
4. Innosphere Client Companies
City of Fort Collins
Council Finance Committee
July 2013
Innosphere Overview & Update
BACKGROUND INFORMATION
2
Our Evolution
98-06
FCTI
06-11
RMII
10 - 11
Innosphere
2012
2013-2014
Kathy Kregel
Mark Forsyth
Kelly Peters
Nicole Franklin
Mark Forsyth
Ryan Speir
Ryan Daniel
Jamie Sherwood
Mike Freeman
Doug Johnson
Maggie Flanagan
Emily Wilson
Ryan Daniel
Whitney Baggett
3
*Current Staff:
501(c)3 3 employees
Building LLC 2 employees
Clusters 1 employee
Strategic Direction….
Capital
Geography
Industries
Business Model
We are more than a building.
We are more than an incubator.
We are more than a network.
We are a force—borne of ideas and shaped by passion.
We are a community of entrepreneurs, leaders and supporters.
We are an ecosystem for innovation.
We are an engine for economic opportunity.
We are a catalyst for progress.
We are Rocky Mountain Innosphere.
Bring your vision.
4
Industry Focus & Geography Served
5
• Biomedical Drugs & Discovery, Diagnostics and Devices,
Agricultural and Animal Products, Bio-based products
• Capital: grants, angel, strategic, venture
• Geography: Northern Colorado
Biosciences
• Infrastructure software, Enterprise software, Security
software, Web 2.0
• Capital: angel, strategic, venture
• Geography: Northern Colorado
Software
• Energy, water, transportation, smartgid, etc.
• Capital: grants, angel, strategic
Cleantech • Geography: Front Range
ORGANIZATIONAL INFORMATION
6
THANK YOU
Innosphere Funding Partners
Nonprofit Funding Model
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2013 2014
2015 2016
2017
Building Income
Powerhouse
Cleantech*
Sponsorships*
Fund for Innovation*
Fundraising Income*
Program Revenues
Cluster Support
Funding Partners
*implies more risk – uncertain who the investor always is 8
Projected
Expenses
Staffing Breakdown & Funding Source
Position Total Funding Source
Non-Profit:
• Mike Freeman
• Doug Johnson
• Maggie Flanagan
3 Funding partners
Sponsorships
Fundraising
Building:
• Ryan Daniel
• Whitney Baggett
2 Leasing income
Cluster Management
• Emily Wilson
1 Contract work
2013 Additional Staff
• Rob Writz –
Cleantech
1 New fundraising
New sponsorships
9
2012 Economic Impact
35 • Client Companies
$7.9M • Annual client revenue
178 • Full and part-time employees
$70,000 • Average annual salary
$19.1M • Client capital raised
$54.2M • Cumulative capital raised
10
Q2 – 2013 Pipeline Report
23 applicants
8 disqualified
8 in-review
7 accepted
Pre-incubation
25
Client
Companies
36
11
CSU Hatchery
Companies
3
Client Management Plan
YE 2012 Q2 YE 2013
Resident 16 17 20
Non-resident 19 17 15
CleanTech
Initiative
0 1 7
Graduates +8 +2 +12
Early Exits +8 +3 +1
Primary Funding Path
8%
14%
19%
27%
32%
Venture
Strategic
Grants
Revenue
Revenue
Industry Portfolio – Number of Companies
Other, 1
Cleantech
Energy, 3
Cleantech
Water, 4
Cleantech
Engines, 4
Bioscience, 10
Software, 15
INCUBATION PROCESS & PROGRAMS
15
Pipeline Development – Quarterly Admission Process
Our Strength is Developing Partnerships to Identify New Client Companies
16
Our Incubation Process
This process helps entrepreneurs manage time and resources relative to
their stage of development and ensures market demand.
Market
Growth
Product
Customers
Technology
Market
Venture
Strategic
Angel
Debt
Grants
Seed
Client Focus
Path to Capital
17
Programs
• Kauffman Foundation’s FastTrac
Tech Venture
• Lunch & Learns
Education
• Social and Advisory Group for
Entrepreneurs (SAGE)
• Executives in Residence (EIR)
Mentors
• Advisors in Residence (AIR)
Networks • Industry events
Services
• Microsoft Bizspark for software companies
• AutoDesk CAD Package for CleanTech companies
• Market and industry reports/ research
• Customer Development
• Strategic planning
• Pitch Coaching (Investors, customers, industry
competitions)
• Social media and PR support
20
Capital Access Programs
1. Fund for Innovation Seed Fund - Established
Established the fund at the Community Foundation of Northern
Colorado – fundraising $500,000
2. Innosphere Early Stage Loan Pool - Completed
Colorado Enterprise Fund and Home State Bank pledged up to
$500,000 for early-stage venture debt (pre-SBA or traditional
lending)
3. Innosphere Community Development Venture Capital Fund– In Progress
Being developed with a statewide CDFI to provide first-in matching
capital for Series A funding rounds
4. Colorado Commercialization Fund - Planned
Form a joint Tallwave – Innosphere Venture Fund 2014+
BUILDING INFORMATION &
FINANCING
21
Building Overview
Building basics
30,000+ square feet
Laboratory space equipped for fume hoods
Shared print/copy/fax workroom
Shared kitchen and café meeting room
Showers and changing area
Meeting places
Large conference/event spaces with high-quality audio/video
Smaller conference rooms and creative spaces
A lounge-café that is ideal for informal meetings
Big Picture Building Budget
Leasing Income $505,000
Expenses $659,000 (includes depreciation)
Net Income -$154,000
Net Income $15,000 (without depreciation)
23
Significant Expense Categories:
Property Taxes $143,000
Interest Expense $127,000
Building Mgmt. $77,000
These make up 70% of the total building budget
2013 Building Budget
24
• 95%+ leased currently (June, 2013)
• Ahead of budget now – but major lease ending
• Commitments to be 90% leased by September 1
• Remaining leasing a priority for 4th Quarter
• On track to meet adopted budget for Net Income
Building Next Steps
25
• Complete the mandatory 7 year New Market Tax
Credit Term
• End of 7 years – either refinance with a bank, or pay
off debt
• Building becomes an asset to the Nonprofit following
year 7
CLOSING
26
Integration with City of Fort Collins
Strategically linked to City Economic Health strategy
Source companies to Power House and RIC (CSU)
Central to industry cluster strategies
Part of the redevelopment program for Vine – Lot B
APPENDIX – BENCHMARK
INFORMATION
28
Competitive Analysis - Regional
29
Regional
Competitors
Incubator Industry
breadth
Equity
Stake
Research
Institution
Association
National
Advisory
Network
Staff
Innosphere
4
6
Innovation
Center of the
Rockies
3
8
Tech Stars
7
3
Galvanize 7 7
CO Springs Tech
Incubator
7
8
Cleantech Open 6
11
Stone Soup
Accelerator
6
Competitive Analysis- Regional
30
Regional
Competitors
Later
Stage
Capital
Seed
Capital
Funds
Public
Economic
metrics
Sponsorship
Overlap
Fee-
based
Tenure
Innosphere
4
14 yrs
Innovation
Center of the
Rockies
7
6 yrs
Tech Stars
0 6 yrs
Galvanize n/a 0 0.5 yrs
CO Springs
Tech
Incubator
n/a
0
12 yrs
Cleantech
Open
7
7 yrs
Stone Soup
Accelerator
n/a n/a 0 yrs
Competitive Analysis - National
31
National
Competitors
Incubator Industry
breadth
Equity
Stake
Research
Institution
Association
National
Advisory
Network
Innosphere
4
Prescience
International
4
Austin Tech
Incubator
4
Deshpande
Center
5
Tech Ventures
Corp
6
Y combinator 7
Idea Lab 6
Competitive Analysis- National
32
National
Competitors
Later
Stage
Capital
Seed
Capital
Funds
Public
Economic
metrics
Staff Fee-
based
Tenure
Innosphere
6
14 yrs
Prescience
International
6
16 yrs
Austin Tech
Incubator
9
23 yrs
Deshpande
Center
5 10 yrs
Tech Ventures
Corp
5
20 yrs
Y combinator
n/a 7 yrs
Idea Lab 10 16 yrs
Innosphere’s Competitive Position Summary
Innosphere’s
Competitive
Position
Minimal competition
in the incubator
space in Colorado.
Several Accelerators
which serve the
software market.
Little threat of new
entrants. Incubators
are hard to fund and
sustain. There is
little to no financial
incentive to open a
new one.
Nationally successful
incubators tend to be
privately funded, investor
driven, take an equity
stake in the company, and
are generally limited in
technology areas.
Our value proposition
is providing a quality
long-term incubator
program with capital
access to foster job
creation.
33
ROCKY MOUNTAIN
INNOSPHERE
2012 ANNUAL REPORT
Accelerating Entrepreneurship and Job Creation
Dear friend of Innosphere,
On behalf of the clients, board of directors and staff of Rocky
Mountain Innosphere, we are pleased to present our 2012
Annual Report.
2012 was a year of exciting changes, building on the
foundation of our past while creating an organization for the
future. We welcomed new board members, new staff and
13 new client companies. We developed new partnerships
and initiatives to better meet the needs of our entrepreneurs
who are growing businesses and creating jobs in our key
impact areas of Cleantech, Water Technologies, Bioscience
and Software.
The highlights of our annual report feature major
accomplishments from this past year, an overview of the
economic impact Innosphere client companies are producing,
and an overview of Innosphere’s latest initiative – access to
capital. Our successful year would not have been possible
without support from you, our stakeholders, partners and
supporters. We are thankful to have you as part of our team
and look forward to working and growing with you in 2013.
Sincerely,
Thank You to our
Innosphere Funding Partners
Mike Freeman
Rocky Mountain Innosphere
CEO
Mark Wdowik
Rocky Mountain Innosphere
Board Chair
14
8
6
2
2
3
Software
Bioscience
Cleantech
Water
Other
Cleantech
Energy
Cleantech
Engines
35 client companies served
$7.9M revenues of current client companies
178 full and part-time employees
of companies
$70K average annual salary of
company employees
$19.1M capital raised in 2012
$54.2M capital raised to date by current
client companies
Economic Impact of 2012
Rocky Mountain Innosphere
Innosphere is a 501(c)3 non-profit organization located
in a qualified Colorado Enterprise tax zone and Urban
Renewal Area.
As a technology incubator, the Innosphere:
• Accelerates the success of high-impact scientific and
technology startup companies.
• Promotes the development of an entrepreneurial ecosystem
throughout Colorado.
• Is building a portfolio of the most innovative companies in
Colorado with a focus on growth, jobs and wealth creation for
our communities.
The resources we provide to entrepreneurial
startup companies:
• A network of advisors, mentors and professional
service providers.
• Educational and networking opportunities for realizing
business success.
• Access and connections with academic and
government institutions.
• Assistance with raising capital.
Industry Portfolio of 2012 Client Companies: Resident & Non-Resident
Log mesh TM
Technologies, LLC
One Third
of clients have a CSU affiliation
Innosphere Client Companies:
Class of 2012
Blue Margin
Clean Engines
Community Funded
FishChoice
GreenRx
Jobzology
KromaTiD
MoCo Development Co.
Memory Bistro
Newaya Recycling
OptiEnz
Scout
VetDC
Innosphere Client
Companies
Advanced MicroLabs
Advanced Regenerative Therapies
Begin Again
Canvasback Legal Technologies
Carbo Analytics
Clear Path Labs
Crashboxx
Czero
Delta Circuit Desin
DH2i
Eckstien Diagnostics
Forston Labs
Logimesh
Membrane Protective Technologies Inc.
Propel Labs
Smart Move, Inc.
Ridekick International
St. Renatus
Stewart Energy
Symbios Technologies
WeatherFlow
YouSEEU
Past Graduates
Advanced MicroLabs
Begin Again
Clear Path Labs
Datasplice
DVM Systems
Inviragen
Panda Bicycles
Sprig Toys
Stewart Energy
VanDyne Superturbo
ZeroHero
Born in the Colorado State University research and
development machine, OptiEnz is a great example
of the effectiveness of CSU Ventures in translating
faculty innovations into entrepreneurial enterprises
in water innovation.
Capital Access Strategy Moves
Innovation Forward
Without access to the appropriate
capital at the appropriate time, many
promising businesses stall or even fail.
We are committed to our Access to
Capital initiative to match entrepreneurs
to capital:
1. Path to Capital:
education for entrepreneurs on potential
capital sources for their business, based
on the appropriate growth strategy for
their business.
2. Investor Network:
expediting the time it takes to fund a
promising Innosphere Client Company
by forming strong investor networks
and strategic connections to create
funding opportunities.
3. Capital Access Pools:
the Innosphere has initiated or
established innovative internal funding
solutions to increase access to capital for
select companies, including:
Primary Funding Path
One of the key services in
Access to Capital is helping
entrepreneurs understand their
primary funding path.
By working with the entrepreneur
to best understand the type
of company they are trying to
build, we are able to target their
funding approach and help them
tailor their pitch to stay focused
on the appropriate funding
sources. This maximizes time
in the business and minimizes
unproductive pitches.
73% of Innosphere clients
describe their company goal as
“Establishing a headquartered
company” and growing their
company through revenue, debt
and angel investor funding.
37%
36%
12%
9%
6%
Revenue
Angel
Strategic
Grants
VC
• Fund for Innovation:
a seed stage fund established at
the Community Foundation of
Northern Colorado
• Innosphere Early Stage
Pipeline Development is key to success
We spend a significant amount of time working with outside partners to develop a strong pipeline of new
companies. Many are surprised at the number of companies we work with in the pre-incubation stage. Our
process ensures a strategic vetting process for companies to go from pre-incubation to Innosphere client
company. While the 13 client companies admitted in 2012 represent a diversity of industries, all are viable
businesses with the ability to have a significant economic impact in the region. This diversity of industries
makes developing a tailored process for each client even more vital to their success.
Colorado State University Ventures: initiated
a new process to discuss early research projects
that heading toward commercialization in
12 to 24 months.
Colorado State University, Infectious Disease
Research Center: launched a new partnership with
the IDRC management team to provide programs
and services for companies within the Research
Innovation Center incubator.
University of Colorado, Cleantech Program:
Innosphere is now working with start-ups from
the Cleantech program. It is expected that 4-6
companies each year will be applying for
Innosphere membership.
Colorado Institute for Drug, Device,
and Diagnostic Discovery: to better support
Bioscience companies, the Innosphere teamed
up with CID4 to provide early stage assistance,
funding, and technical expertise for client
companies.
Colorado State University’s Institute
for Entrepreneurship: This partnership helps foster
the development of collegiate entrepreneurs. CSU’s
Institute for Entrepreneurship recently launched
the New Economy Venture Accelerator to provide
students with resources to achieve the ultimate goal
of creating self-sustaining, funding-ready ventures.
Pre-incubation services help
entrepreneurs determine if there
is a scalable business opportunity
around their technology innovation.
Innosphere client companies
receive help from Innosphere in
accelerating development from
business concept to company.
Pipeline partners are essential in
connecting Innosphere to the most
promising technologies being developed
in our region as well as assisting us in
vetting technologies that come from
outside of the network.
CSU
CSU Ventures
CID4
CU-Cleantech
Univ. of CO Health
Corp. Ventures
Venture Capital
Family Oces
SAGE
Advisors
CSU
SBDC
Great ideas don’t grow into great
businesses on their own
Even with a terrific business plan, an entrepreneur
needs the right support. The Innosphere would
not exist without the support of our volunteers,
community partners and investors. We invite you to
join our entrepreneurial ecosystem and share your:
• Time & Talent: Advisors, Mentors, Executives
• Treasure: Fund for Innovation,
Colorado Angel Investors
Join us! We welcome partners who:
• Wish to enable game changing technologies in
areas of Cleantech, Water Technologies, Bioscience
and Software
• Want to support the creation of high-paying jobs
• Want to roll-up their sleeves and help
entrepreneurs tackle the critical challenges
that will make or break their business
2013 priorities
• Additional investments out of the Fund
for Innovation
• The formation and implementation of the
Community Development Venture Capital Fund
• Launch new collaboration with CSU’s Powerhouse
For more information on how to be involved with
Innosphere, please contact Mike Freeman, CEO.
For more information on fund-raising programs,
contact Doug Johnson, Vice President of Capital Access.
Please call the main line at 970-221-1301.
Northern Colorado Bioscience
Cluster (NoCoBio)
Nurturing Ideas.
Building Bioscience.
You have an idea, and you’ve demonstrated
it can work. Now what? NoCoBio is the
resource that helps you answer that
question. We’re your connection to the
biosciences community – and the boost you
need to move your innovation forward.
NoCoBio in the News:
Burns Marketing, a full-service marketing
agency with offices in Northern Colorado
and Denver, announced a major in-kind
sponsorship to the Innosphere to advance
the Northern Colorado BioScience initiative
(NoCoBio). The in-kind services are valued
at more than $60,000, making it the
largest in-kind sponsorship to ever come
through the Rocky Mountain Innosphere.
The Colorado Institute for Drug, Device
and Diagnostic Development (CID4),
a not-for-profit entity focused on
advancing the Colorado life science
ecosystem through company creation
and job growth, announced a partnership
with Rocky Mountain Innosphere to
support the technology incubator’s
bioscience companies.
Tax Credit Example for Innosphere Donors
Innosphere Contribution Amount $100,000
320 East Vine Drive, Fort Collins, CO 80524
970.221.1301 rmi2.org
We are more than a building, an incubator, or a network.
We are a force—borne of ideas and shaped by passion.
We are a community of entrepreneurs, leaders and supporters.
We are an ecosystem for innovation.
We are an engine for economic opportunity.
We are a catalyst for progress.
We are Rocky Mountain Innosphere.
Bring your vision.
printed on 100% post-consumer waste recycled paper
Join the Conversation
Innosphere is a 501c3 tax exempt non-profit organization
Arrange a tour of our facility to learn more about the Innosphere – call the main line at 970-221-1301
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Eckstein Diagnostics
Eckstein Diagnostics overcomes obstacles in diagnosis of chronic and/or multi‐pathogen caused infectious
diseases in animals and humans. Eckstein is developing techniques to detect pathogens from tissues and fluids.
The focus is on: Johne’s disease (cattle and sheep) and Crohn’s disease (humans) as well as Malaria and
Melioidiosis (humans).
www.rmi2.org/57/EcksteinDiagnostics
KromaTiD, Inc
KromaTiD Inc. is a small biotech start‐up company established in 2007 by five founding members with a big
vision – creating innovative solutions for chromosome analysis. Specifically, KromaTiD sought to greatly
improve resolution of detection of a specific and historically difficult, if not impossible, to see chromosome
aberration – inversions
www.kromatid.com
Membrane Protective Technologies
Membrane Protective Technologies, Inc. seeks to provide a competitive advantage to the U.S. reproductive
industry by leveraging natural solutions and unique intellectual property to decrease damage in cryopreserved
cells induced by oxidative and physical stress. This research and development company seeks to create and
leverage partnerships for its proprietary, plant derived technologies thereby creating strategic wins for
multiple levels of the andrological, assisted reproduction, and cellular preservation industries.
Propel Laboratories
Propel Labs’ flagship products focus is in the biotech industry. It has designed and developed robust hardware
and software products for Flow Cytometry and Automated Solution Preparation. These products increase a
laboratory’s efficiency to maximize productivity.
www.propel‐labs.com
Si Technology
SI‐TECHNOLOGY, LLC is a medical device company focusing on commercializing orthopedic medical devices. The company
has exclusively licensed patent‐pending technology to develop solutions for the treatment of sacroiliac joint (SI or SIJ)
pathologies and pelvic fixation, with technology ranging from the least possibly invasive methods, implants and
instruments for stabilization, whether by arthrodesis or arthroplasty, to extensive surgical pelvic fixation options.
St. Renatus
For the millions of people who stay away from the dentist because they fear the needle and the pain, relief is
soon on the way. St. Renatus, LLC plans to introduce the world’s first needle‐free dental anesthetic
administered through the nasal cavity and suitable for use in procedures involving most of the upper teeth.
The company is in phase three of FDA clinical studies.
www.strenatus.com
VetDC
VetDC was founded on the principle that companion animals should have greater access to novel, innovative
medical treatments. Working closely with Colorado State University's world‐renowned Animal Cancer
Center and Veterinary Teaching Hospital, VetDC "reverse‐engineers" promising new human technologies
specifically for development in companion animal markets to address serious veterinary medical conditions.
http://vet‐dc.com/
Software Companies
Meritage Systems
Meritage Systems provides a proven cloud‐based solution to municipal governments to streamline their work
and improve services for their citizens. In most small to medium size townships and cities, processes for
building permits, code enforcement and other services are managed with old software, spreadsheets or
notes. It’s inefficient, difficult to track and report, and leaves building inspectors, contractors, and
homeowners frustrated. With Meritage Systems, small to medium sized municipalities can now offer
streamlined, up‐to‐date department services in use in over 100 communities today, all at an affordable
monthly fee.
www.meritagesystems.com
Innotrieve
Innotrieve is an innovative data retrieval company that focuses on providing critical human resource
information to resource sensitive industries to help them find, hire and support unique professionals. Born out
of an artificial intelligence research lab in Los Angeles, they use advance search techniques to weed through
mountains of data to find information important to employers.
Blue Margin
With its BlueCore™ Solutions Modeling Software and expertise in Cloud Computing, Blue Margin brings
document, workflow and communication chaos under control, accessible from anywhere. Blue Margin
provides consulting, project management and support services that enable mid‐size enterprises to achieve
radical business improvements by leveraging the best cloud technologies.
www.bluemargin.com
Canvasback Legal Technologies
Canvasback has created, developed and marketed innovative and pioneering software solutions for the bail
bond industry to operate efficiently, effectively and with sustainability while revolutionizing how modern bail
agents operate to decrease overhead and increase profits.
www.canvasbackonline.com
Community Funded
Community Funded LLC is a Colorado Limited Liability Company that owns and operates
communityfunded.com, a perks based crowd‐funding platform and payment gateway solution. To date, CF has
helped 19 organizations raise over $163,000 towards their projects. What sets CF apart from other crowd‐
raising platforms (besides its focus on local communities) is that it serves both for‐profit and non‐profit users,
digitizes in‐kind giving, fuses shopping and giving, while also allowing its users to check out with giftbacks from
multiple projects at once. Their newest product, Powered By CF, gives the power of crowdfunding to anyone
by loading CF features onto any website URL.
www.communityfunded.com
DH2i
DH2i DxConsole for Microsoft SQL Server is a software solution designed specifically for virtualizing and
consolidating mission critical SQL Server databases. SQL Server databases, servers and storage are
consolidated into manageable private cloud utilities resulting in significant cost savings for medium and
enterprise‐level companies.
www.dh2i.com
FishChoice
FIshChoice.com is a B2B Web site providing free, instant access to the products and information necessary to
source environmentally responsible seafood.
www.FishChoice.com
ExchangeMeds
ExchangeMeds’ advanced pharmaceutical exchange technology provides an information technology platform
and logistics for inter‐pharmacy drug transfers but does not take the possession of the drug. Our online
exchange connects pharmacies to each other to ensure that billions of dollars worth of unused and overstock
medicine does not go to waste. By reducing the amount of medicine that expires before reaching the
customer, and by promoting more environmentally conscious practices, we hope not only to save pharmacies
money, but to protect our planet from the unnecessary consequences of overproduction.
www.greenrxcorp.com
JobZology
Based in science derived from the psychology department at Colorado State University, and birthed from CSU
Ventures, the new entity Career Analytics Network is now offering a social media interface product called
JobZology. JobZology disrupts the traditional methods of job seekers finding work and replaces it with an
interface that enables a match between career seekers and employers within specific industries. This
matching service based in interests and values keeps the connection between employee and employers
fulfilling, innovative, productive and long lasting.
Metstat
Metstat is a meteorological engineering company that specializes in detailed precipitation analysis, regional
frequency analysis of weather variables and accurate gauge‐adjusted NEXRAD precipitation for optimization of
hydrologic design, efficient water management and public safety. We do so with integrity, honesty,
professionalism and reliability.
www.metstat.com
MOCO Development Company
MOCO designs multilingual solutions to help educational institutions and businesses reach out to an ever‐
growing international market. By providing customized information and way‐finding in the comfort of their
native language, MOCO’s solutions create an inviting and welcoming environment for customers and students.
www.mocodevco.com
Scout
Scout is the pioneer of hosted server monitoring and is a clean, reliable, hosted solution to monitor Linux
servers and apps. Born as an internal tool at Highgroove Studios in 2007, Scout opened to the public a year
later. It turned out a lot of people were frustrated with monitoring too. Today, Scout watches 10,000 servers
for big names like Zynga, The New York Times, and 10gen along with many soon‐to‐be big organizations. Large
or small, customers are united by the belief that monitoring doesn't have to be painful.
www.scoutapp.com
Smart Move
PAI develops solutions which encourage people to live more actively and has developed a physical activity
monitoring and coaching solution called the FitCompanion that is a device inserted into any shoe and provides
data to smartphones.
www.physicalactivityinnovations.com
White Cheetah
White Cheetah™ saves lives using the power of enhanced community intelligence. Our SaaS enterprise
application operates in the cloud, using location‐intelligent social and mobile tools to keep people informed,
aware, and protected in an emergency.
YouSeeU
YouSeeU enhances distance learning through its proprietary 3SyncPlayer which solves the problem of how to
deliver, facilitate and evaluate online video lessons, presentations and discussions without resorting to the
wasteful use of DVDs, flash drives or vulnerable public 'tube' sites.
www.youseeu.com
Cleantechnology
Avivid Technologies Group, LLC
Avivid is a holding company dedicated to the management and financing of wholly owned companies and joint
ventures in the environmental and energy service industries. Avivid currently owns Avivid Water Technology,
LLC (water purification) and Avivid Pipe Products, LLC (waste water pipe maintenance). Avivid has an owner
and operator business model, meaning their company not only provides the tools, but also operates the tools
as part of their product.
Solid Power
Solid Power is developing ultra high energy, safe and low‐cost all solid‐state rechargeable batteries. Their
technology enables batteries that run considerably longer on a single charge as compared to current Li‐ion
batteries.
http://www.solidpowerbattery.com
Boulder Electric Vehicle
BEV builds and sells more 100% electric delivery vans, trucks, and shuttles that dramatically reduce fuel costs,
maintenance costs, and carbon emissions – to zero. The company’s core competence lies in its engineering
commercial trucks that exploit current and future proven technology in electric motors, batteries, and other
electric drive train components to achieve dramatic economic advantages while reducing carbon emissions to
zero.
http://www.boulderev.com
Clean Engines, Inc.
Clean Engine's mission is to provide clean transportation solutions that benefit the base of the economic
pyramid in emerging markets. Its first products are retrofit kits for 2‐stroke and 4‐stroke motorcycle engines in
the commercial taxi market in Asia. Clean Engines is a triple bottom line company, delivering income
enhancement for its customers, environmental and health benefits through radically reduced emissions, and
strong shareholder return.
http://clean‐engines.com/
Czero
Czero is a premier engineering service company that specializes in accelerating new technology development
for clients in the areas of clean tech, automotive, hydraulic and mechanical systems. Award‐winning engineers
combine the latest in analysis, simulation and modeling tools with extensive hands‐on experience to handle
the entire R&D process from start to working prototype.
www.czero‐solutions.com
Logimesh
Logimesh is developing a wireless mesh network nanosensor system to remotely monitor assets used in the
energy sector. The initial focus is on 'machine health' condition monitoring for the gas and oil vertical
market. Logimesh has developed a first‐ever technology solution that scavenges heat and vibrational energy
from engines & compressors to charge a micro‐energy cell, eliminating the need for batteries, thus providing
perpetual power to the sensor node. www.logimesh.com
Navitus Power Services, Inc.
NPS is an early stage Colorado corporation that has developed a range of battery based energy storage systems for the
emerging Smart Grid. Our flagship 2 MW, fast‐response system, the NP4, is aimed at the under‐served frequency
regulation market. Our vision is to own, lease, sell, and operate such grid‐tied systems worldwide.
www.navituspower.com
OptiEnz Sensors
OptiEnz has revolutionized measurement capabilities for organic chemical concentration; now providing
continuous, real‐time, in‐place sensor solutions.
www.optienzsensors.com
Open Water Foundation
The Open Water Foundation is a nonprofit social enterprise that develops, maintains, and supports open
source software for water resources. The software platform helps organizations evaluate decisions about
water use and supply and evaluate impacts on municipalities, agriculture, industry, and the environment. The
OWF business model promotes innovation, collaboration and transparency while helping organizations
become more efficient, support sustainable software, and address important water issues.
Symbios Technologies
Symbios Technologies develops and commercializes state‐of‐the‐art clean technologies to improve water
treatment, waste disposal, and biofuel production economics. Symbios has developed a scientifically advanced
low‐cost aqueous plasma oxidation technology, the Symbios Plasma Reactor, to clean water, preserve the
environment, and protect human health as well as improve energy production economics and sustainability.
www.symbioenergy.com
Synaptic Sensors
Portable analytical instrumentation to monitor everything from temperature to the presence and
concentration of hydrocarbons in water and soils is necessary to maintain human and environmental health
and safety. Forston Labs has developed the hand‐held LabNavigator System for use in a wide variety of
industries.
www.forstonlabs.com
CSU Student Startups
The CSU Hatchery
CSU incubates its own startup companies—these three student entrepreneurs were chosen to accommodate
space at Innosphere and have full access as clients. Current hatchery companies include StuffNMallows, Origin
Ltd., and The Wild Gym Company LLC.
Newaya Recycling
Newaya pays smartphone owners for their old iPhones, Blackberrys, Androids and Windows phones when they
upgrade to a new phone model or switch carriers. For businesses upgrading their employees’ phones, Newaya
securely wipes smartphones and provides a certificate of data destruction for each handset. The company also
offers a free recycling program for old dumbphones.
www.newaya.com
Anchor Clients
InVitria
InVitria provides the biotechnology industry with innovative products to improve cell culture and bio‐
manufacturing. InVitria does this by allowing customers to eliminate animal components from their cell‐based
processes. Removing these components helps improve consistency, safety and efficiency. InVitria’s products
are recombinant proteins. These products have many uses across the life science industry including in
regenerative medicine, cellular therapy, bio‐manufacturing, vaccines, diagnostics and medical devices.
www.invitria.com
Ventria Bioscience
Ventria Bioscience is the first company to commercialize recombinant proteins derived from a plant‐based
manufacturing system. Ventria’s technology platform ExpressTec is a safe, affordable and sustainable
technology that achieves recombinant protein yield that is many times higher than alternative systems. This
advantage means Ventria’s products are accessible to a global customer base.
www.ventria.com
Spirae
Spirae is an innovative technology company that delivers scalable smart grid solutions to global partners and
customers. Spirae specializes in the integration of large‐scale renewable and distributed energy resources, the
development of local and wide area controls, energy service platforms and power system simulations.
www.spirae.com
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Jon Haukaas, Water Engineering and Field Services Manager
Lance Smith, Strategic Financial Planning Manager
SUBJECT FOR DISCUSSION
Water sharing and capacity sales agreements with Fort Collins Loveland Water District
EXECUTIVE SUMMARY
The purpose of this item is to amend the existing Intergovernmental Agreement (IGA) with
Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement,
recognizing additional connection locations, and to enter into a new agreement allowing for
the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity.
For the past year, Utilities Staff has been negotiating with FCLWD to restructure the existing water
sharing agreement and amend it to include the sale of excess water treatment capacity. The
revisions to this agreement will benefit the customers of Fort Collins Utilities (FCU) through
incremental revenues and the customers of FCLWD by increasing the amount of water that can be
delivered through the agreement to them. The Water Board has reviewed the proposed amendments
and recommends approval.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
There are a number of issues for which Staff would like some general direction on regarding these
two proposed IGA’s. These include:
1. Is City Council interested in more fully utilizing existing excess treatment capacity to meet
regional water demands?
2. Is it reasonable to request the City Council to allow FCLWD to amortize the plant
investment fee over 30 years at 5% interest?
3. Is the City Council amenable to considering stepping into the full cost of treatment over 3
years to avoid rate shock to FCLWD customers and reach agreement on amending the
existing water sharing agreement?
BACKGROUND/DISCUSSION
In 1999 a Joint Transmission Study was completed by FCU and the Tri-Districts to determine the
need for additional transmission capacity throughout the community. An outcome of that study was
the decision by FCU to build a 60” transmission system which, in addition to meeting the demands
of FCU, would be utilized by FCLWD to convey water from the Soldier Canyon Treatment Plant
(SCFP) to FCLWD customers through an IGA.
The current water sharing agreement between the City and FCLWD has been in effect since 1999
for that purpose. The agreement specifies the annual cost to FCLWD to lease transmission capacity
from FCU. Delivery points into the FCLWD distribution system were specified in the agreement as
were two points of entry into the FCU transmission system from SCFP. The intention of the water
sharing agreement was to allow for an annual balancing between how much water was pushed into
the FCU transmission system from SCFP and how much water was pulled out of the FCU
transmission system by FCLWD and to specify the terms of the lease of the excess capacity in the
new 60” transmission pipe. No changes are being proposed to the leasing terms except to include
two additional points of delivery which have been added since 1999.
Many of the terms of the agreement concerning the balancing and settlement of imbalances are
outdated however, including the amount of water being shared, the points of delivery for any shared
water as discussed above and the settlement price of any resulting annual imbalance. In an effort to
address these inconsistencies, FCU and FCLWD have negotiated new terms for the agreement over
the past year. FCLWD has agreed in writing to the terms being presented to City Council here.
Ongoing development within the FCLWD service area has created a need for higher daily flows of
water through the FCU transmission system for the FCLWD distribution system. The amended
agreement being proposed for City Council consideration on 8/20/2013 will increase the daily flow
limit from 9 to 12 MGD which along with the proposed amendment for the sale of excess treatment
capacity discussed below should allow FCLWD to meet their demand for several years. (Please
note that FCU is expecting to amend the existing water sharing agreement with NWCWD to lower
the maximum daily flow of that agreement from 12 MGD to 9 MGD, hence there is no increase in
the combined treatment capacity obligation of the WTF for these agreements.)
The current water sharing agreement allows for an annual settlement of any imbalance at $0.36 per
thousand gallons with no raw water being provided. This settlement price is well below the current
direct cost of treatment much less the current total cost of treatment. As such, the fixed price of
settlement, along with no raw water being provided in the settlement, is no longer acceptable to
FCU. To date all annual imbalances have fallen within the specified 5% limit which allows the
imbalance to be carried forward into the next water year. However, in the foreseeable future this
may not be the case. To make it possible to not require annual settlements in the past it has been
necessary for FCLWD to push significant amounts of water to FCU during shoulder months
(February – April and September – October) in order to offset the significant imbalance that occurs
during the irrigation season (May – August). In effect, FCU has provided FCLWD with treatment
capacity to meet their peak demand without compensation in the past. The proposed amendment
will address these issues by allowing for annual adjustments in the settlement price, requiring raw
water is transferred between parties and requiring monthly settlement of any imbalance. Because
the proposed settlement price for 2013 of $1.9187 per thousand gallons (plus transmission charges
as outlined in the current agreement) is significantly higher than the current agreement specifies and
may require an immediate rate increase for FCLWD customers, FCU has agreed to ask City Council
to allow for this rate to be stepped into over 3 years beginning at $1.2736 per thousand gallons in
2013.
The terms of the agreement are mutual so that the same settlement terms apply to any imbalance
owed to FCU or FCLWD. Because FCU has excess treatment capacity and the agreement outlines
the right of refusal by either party of water through daily communication, it is not anticipated that
FCU will have a need to take sufficient water from FCLWD to result in a monthly imbalance
requiring settlement under normal operating conditions.
Lastly on the water sharing amendments, per a letter from FCLWD on May 31
st
states, both parties
are agreeable to making the proposed amendments effective June 1
st
, 2013.
In addition to renegotiating the terms of the water sharing agreement, both parties have spent
considerable time reaching consensus on the proposed agreement for the sale of some of the excess
water treatment capacity at the FCU WTF. The WTF was last expanded prior to the significant
conservation efforts of the past decade which have resulted in the WTF treatment capacity of 87
MGD being at least 20 MGD above FCU’s expected demand at build out in 2035. The proposed
agreement for the sale to FCLWD of up to 5 MGD of treatment capacity provides FCU customers a
significant source of revenue to offset future operating expenses at the WTF and allows for future
capital improvements to the existing facilities. The terms of the agreement do not involve the
transfer of raw water rights as FCLWD is acquiring 5 MGD of treatment capacity only.
The associated plant investment fee (PIF) of $12.6M would require the issuance of debt by FCLWD
or alternatively, as is being proposed here, to be amortized over 30 years at 5% APR resulting in
annual payments of $819,648 (through monthly payments of $67,640) to FCU. In addition to the
PIF, any water that is treated and delivered through this agreement to FCLWD will include
treatment charges of $1.9899 per thousand gallons along with a transfer of an equal amount of
Colorado-Big Thompson Project (CBT) water from FCLWD to FCU. FCLWD has requested the
option to purchase an additional 5 MGD of treatment capacity from the WTF under the same terms.
While FCU is not agreeing to the right of first refusal for this additional 5 MGD, FCU will work
closely with FCLWD to ensure FCLWD is aware of how much excess capacity exists at the WTF in
the future.
FINANCIAL / ECONOMIC IMPACTS
The financial impact of the proposed amendments affecting the sharing of water between the two
parties is difficult to quantify as it depends greatly on the annual variability in water demand.
Monthly imbalances requiring settlement are likely in the irrigation season (May – August) when
FCLWD has historically taken more water than it has returned to FCU. Thus, amending the
agreement to have monthly rather than annual settlements may increase the cost of water for
FCLWD customers as it will no longer allow FCLWD to effectively use this agreement to meet its
summer peak demand through the use of treatment capacity it has not invested in creating.
Correspondingly, it may offset some of the indirect treatment costs currently paid by FCU
customers through the monthly settlement of any imbalance.
The financial impacts of the proposed amendment for the sale of excess treatment capacity also
depend on the annual variability in the demand for water with the exception of the plant investment
fee. The budget for 2013-14 assumed an average annual collection of $650,000 in plant investment
fees. The annual payment associated with amortizing the purchase of 5 MGD of treatment capacity
is $819,648. Thus, amortizing the plant investment fee over 30 years will result in significantly
increasing the amount of capital available annually for investment in renewing the WTF
infrastructure.
ATTACHMENTS
Attachment 1 – PowerPoint presentation
1
Intergovernmental Agreements
with Fort Collins Loveland Water
District
Council Finance Committee
July 15, 2013
Attachment 1
2
Agenda
• Current Agreement
• Proposed amendments around water sharing
• Proposed agreement around the sale of excess
treatment capacity
3
Current Agreement
• In effect since 1999
• Intended to allow FCLWD to lease transmission
capacity from FCU to convey water to FCLWD
• This is what is meant by “water sharing”
• Specifies upper limit on water being shared, delivery
points and annual settlement
4
Monthly Water Sharing Imbalance
Water owed to
FCU
-200
-150
-100
-50
0
50
100
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Monthly Imbalance
(11/2010 - 10/2012)
Water owed to
FCLWD
Millions of Gallons
5
Term Currently Proposed
Daily Limit 9 MGD
Annual Limit 1.25 billion gallons
Settlement annually *
Rate per thousand gallons $0.36
Raw Water none
* Any imbalance less than 5% of the annual amount conveyed
may be carried over from one year to the next.
Proposed Amendments for Water Sharing
12 MGD
1.75 billion gallons
monthly
$1.2736 - $1.9189
CBT monthly
6
Benefits of Amended Water Sharing
• Eliminates imbalance being reduced in shoulder
months thereby improving utilization of water rights
portfolio
• Eliminates possibility of settlement below cost of
treatment and without raw water
• Provides compensation for use of excess treatment
capacity
• Reconfirms cooperation between water providers
7
Excess Water Treatment Capacity
At build-out in 2035 it is expected that the WTF will have
22 million gallons of excess treatment capacity.
8
Proposed Agreement for Capacity Sale
Term Proposed Comment
Daily Limit 5 MGD
Actual water demand will vary up to 5 million
gallons per day
Rate per thousand
gallons
$1.9899
Cost of service based rate including
transmission costs to be adjusted annually
Raw Water CBT monthly
FCU will receive raw water back the month
after treated water was delivered to FCLWD
Plant Investment Fee $12.6M
FCLWD is requesting the PIF to be amortized
over 30 years
9
Benefits of Water Sales Agreement
• Increases regional utilization of existing infrastructure
• Allows for FCU to recover previous investment in
excess treatment capacity
• Provides consistent incremental revenue stream for
capital improvements and operating expenses
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: John Voss, Controller/Assistant Financial Officer
Mike Beckstead, Chief Financial Officer
SUBJECT FOR DISCUSSION: Auditor’s 2012 Report
EXECUTIVE SUMMARY:
McGladrey will be presenting the Report to the City Council. This report covers the audit of the
basic financial statements and compliance of the City of Fort Collins for year-end December 31,
2012.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
None, this is a report of the 2012 year-end.
BACKGROUND/DISCUSSION:
Every year the City’s external auditors are required to present to City Council the findings of the
audit of the financial statements and compliance of the City of Fort Collins. The auditors present
the findings and suggestions for the year audited. Findings are significant issues related to grant
programs that must be addressed and they can be found on pages 12-14 of the Compliance
Report. Suggested improvements to internal controls are also presented on the last two pages of
the Report to the City Council. Staff will provide a written response on the audit findings and
recommendations at the October Council Finance Committee.
ATTACHMENTS:
1. Report to the City Council
2. Compliance Report
3. Comprehensive Annual Financial Report
City of Fort Collins, Colorado
Compliance Report
December 31, 2012
Contents
Independent auditor’s report on internal control over financial reporting and
on compliance and other matters based on an audit of financial statements
performed in accordance with Government Auditing Standards 1 – 2
Independent auditor’s report on compliance for each major federal program,
on internal control over compliance and on the schedule of expenditures of federal
awards required by OMB Circular A-133 3 – 5
Schedule of expenditures of federal awards 6 – 8
Notes to schedule of expenditures of federal awards 9
Summary schedule of prior audit findings 10
Schedule of findings and questioned costs 11 – 14
Corrective action plan 15
1
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor and
Members of the City Council and
City Manager of the City of Fort Collins, Colorado
Fort Collins, Colorado
We have audited, in accordance with the 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, the financial statements of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of the City of Fort Collins, Colorado (the City), as of and for the
year ended December 31, 2012, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements, and have issued our report thereon dated May 23, 2013.
The financial statements of the City for the year ended December 31, 2011 were restated due to the
implementation of Governmental Accounting Standards Board Statement No. 65, Items Previously
Reported as Assets and Liabilities.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
We noted certain matters that we reported to management of the City in a separate letter dated May 23,
2013.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Denver, Colorado
May 23, 2013
3
Independent Auditor's Report on Compliance for Each Major
Federal Program, on Internal Control Over Compliance
and on the Schedule of Expenditures of
Federal Awards Required by OMB Circular A-133
Honorable Mayor and
Members of the City Council and
City Manager of the City of Fort Collins, Colorado
Fort Collins, Colorado
Report on Compliance for Each Major Federal Program
We have audited the City of Fort Collins, Colorado’s (the City) compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and
material effect on each of the City’s major federal programs for the year ended December 31, 2012. The
City's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts and
grants applicable to its major federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended December 31, 2012.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be
reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule
of findings and questioned costs as items 12-III-B and 12-III-C. Our opinion on each major federal
program is not modified with respect to these matters.
4
The City’s responses to the noncompliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. The City’s responses were not subjected to the
auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
responses.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the City’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that were not identified. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However, we
identified a certain deficiency in internal control over compliance, as described in the accompanying
schedule of findings and questioned costs as item 12-III-A that we consider to be a significant deficiency.
The City’s response to the internal control over compliance finding identified in our audit is described in
the accompanying schedule of findings and questioned costs. The City’s response was not subjected to
the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
response.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
We have audited the financial statements of the governmental activities, business-type activities, the
discretely presented component unit, 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, 2012, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements. We issued
our report thereon dated May 23, 2013, which contained unmodified opinions on those financial
statements. The financial statements of the City for the year ended December 31, 2011 were restated
due to the implementation of Governmental Accounting Standards Board Statement No. 65, Items
Previously Reported as Assets and Liabilities. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements.
5
The accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards
is fairly stated in all material respects in relation to the basic financial statements as a whole.
Denver, Colorado
May 23, 2013
6
City of Fort Collins, Colorado
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2012
Federal Pass-Through
Federal Grantor/ CFDA Entity Identifying Federal
Pass-Through Grantor/Program Title Number Number Expenditures
Department of Housing and Urban Development
Community Development Block Grants (Direct):
Grant Year 2009 / 2010 14.218 B-09-MC-08-0008 $ 39,308
Grant Year 2010 / 2011 14.218 B-10-MC-08-0008 186,128
Grant Year 2011 / 2012 14.218 B-11-MC-08-0008 905,397
Grant Year 2012 / 2013 14.218 B-12-MC-08-0008 441,300
Home Investment Partnership Programs (Direct):
Grant Year 2007 / 2008 14.239 M-07-MC-08-0209 27,028
Grant Year 2009 / 2010 14.239 M-09-MC-08-0209 51,481
Grant Year 2010 / 2011 14.239 M-10-MC-08-0209 267,917
Grant Year 2011 / 2012 14.239 M-11-MC-08-0209 105,402
Grant Year 2012 / 2013 14.239 M-12-MC-08-0209 592,904
Total Department of Housing and Urban Development 2,616,865
Department of the Interior (Direct)
Native American Graves Protection and Repatriation Act 15.922 08-12-GP-569 12,898
Department of Justice
(Passed through the Colorado Division of Criminal Justice):
JABG Federal 11/12 16.523 None 25,361
JABG Federal 12/13 16.523 11-DV-08-23 2,849
JABG Federal - Restorative Justice 11/12 16.523 None 36,055
JABG Federal - Restorative Justice 12/13 16.523 None 21,974
Multi-Jurisdictional Drug Grant (JAG) - 09/10 16.738 2009-DJ-BX-1241 3,739
Multi-Jurisdictional Drug Grant (JAG) - 10/11 16.738 2010-DJ-BX-0967 18,752
Multi-Jurisdictional Drug Grant (JAG) - 11/12 16.738 2011-DJ-BX-2125 55,793
(Pass through the Colorado ICAC Task Force):
ICAC Internet Crimes against Children 16.800 2009-MC-CX-K011 5,569
Total Department of Justice 170,092
Office of National Drug Control Policy (Direct)
2010 HIDTA 07.XXX G10RM0020A 234
2011 HIDTA 07.XXX G11RM0020A (5,848)
2012 HIDTA 07.XXX G12RM0020A 73,879
Total Office of National Drug Control Policy 68,265
Department of Transportation
National Highway Traffic Safety Administration
(Passed through Colorado Department of Transportation):
2011 DUI Enforcement 20.601 None (648)
2012 DUI Enforcement 20.601 None 13,272
2012 Seatbelt Grant Click It or Ticket 20.604 None 7,300
Total National Highway Traffic Safety Administration 19,924
(Continued)
7
City of Fort Collins, Colorado
Schedule of Expenditures of Federal Awards (Continued)
Year Ended December 31, 2012
Federal Pass-Through
Federal Grantor/ CFDA Entity Identifying Federal
Pass-Through Grantor/Program Title Number Number Expenditures
Federal Highway Administration
(Passed through Colorado Department of Transportation):
Mason Street Transportation Corridor - NRRC Trail Underpass 20.205 AQC M455-071 31,994
Mason Trail Troutman Underpass - CMAQ 20.205 AQC M455-089 1,034,420
Intersection Improvements & Traffic Signals - CMAQ 20.205 STU M455-077 239,392
Jefferson Street/SH 14 Intersection 20.205 AQC M455-088 (10,211)
2011 Bike Library - CMAQ 20.205 10-HTD-10927 67,951
FC Bikes Project - CMAQ 20.205 10-HTD-10928 34,891
Traffic Signal System Software 20.205 AQC M455-104 64,199
Linden Street Improvement 20.205 STE M455-093 32,299
Shields/LaPorte Bridge Repairs 20.205 BRO M555-100 850,589
North College CMAQ & Enhancement Program 20.205 11-HA4-28740 1,001,000
North College CMAQ - Vine to Conifer 20.205 09-HA4-00055 456,359
North College CMAQ - Hickory Conifer Hazard Elimination 20.205 SHE M455-080 376,421
US 287 - Conifer to Willox 20.205 STE M455-106 80,266
Harmony Bridge Replacement 20.205 13-HA1-46889 8,470
Total Federal Highway Administration 4,268,040
Federal Transit Administration
(Formula Grants - Capital 5309) (Direct):
2008 Capital 20.500 CO-04-0050 34,796
2009 Capital 20.500 CO-04-0070 8,012
2010 Capital 20.500 CO-04-0086 17,240
Small Starts Mason Project 20.500 CO-03-0206-00 16,646,777
(Urbanized Area Formula Grants - 5307) (Direct):
2010 Grant 20.507 CO-95-X188 93,053
2011 Grant 20.507 CO-95-X196 1,654,596
2010 CMAQ 20.507 CO-95-X004 63,486
Total Federal Transit Administration 18,517,960
Total Department of Transportation 22,805,924
National Endowment of the Arts (Direct)
Our Town Grant 45.024 11-4292-7080 48,948
Institute of Museum and Library Services (Direct)
Collections Move 45.301 MA-05-09-0165-09 28,953
(Continued)
8
City of Fort Collins, Colorado
Schedule of Expenditures of Federal Awards (Continued)
Year Ended December 31, 2012
Federal Pass-Through
Federal Grantor/ CFDA Entity Identifying Federal
Pass-Through Grantor/Program Title Number Number Expenditures
Environmental Protection Agency
(Passed through Colorado Department of Public Health & Environment):
2011-12 Radon Grant 66.605 HAZ12000017 23,014
Department of Energy (Direct)
Police Fuel Station 81.086 10-130 19,335
ARRA - Renewable and Distributed Systems Integration 81.122 DE-FC26-08NT02876 855,042
ARRA - Smart Grid Investment Grant 81.122 DE-OE0000357 4,463,801
ARRA - Energy Efficiency and Conservation Block Grant 81.128 DE-SC0002516 276,598
Total Department of Energy 5,614,776
Department of Education
(Passed through Colorado State University):
Passport Grant 84.128J H128J080025 2,845
Department of Health and Human Services
(Passed through Colorado Department of Public Health & Environment):
NRPA Achieve 93.283 5U58DP001663-03 6,282
Total Expenditures of Federal Awards $ 31,398,862
See Notes to Schedule of Expenditures of Federal Awards.
City of Fort Collins, Colorado
Notes to Schedule of Expenditures of Federal Awards
Year Ended December 31, 2012
9
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of City
Fort Collins, Colorado (the City) and its discretely presented component unit for the year ended
December 31, 2012. All federal financial assistance received directly from federal agencies, as well as
federal financial assistance passed through other governmental agencies expended during the year, is
included in the schedule. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States and Local Governments and Nonprofit
Organizations. Therefore, some amounts presented in the schedule may differ from amounts presented in
or used in the preparation of the basic financial statements. Because the schedule presents only a
selected portion of the operations of the City, it is not intended to and does not present the financial
position, changes in fund balance/net position or cash flows of the City.
Note 2. Significant Accounting Policies
Revenue from federal awards is recognized when the City has done everything necessary to establish its
right to revenue. In the governmental funds, revenue from federal grants is recognized when they become
both measureable and available. For proprietary funds, revenue from federal grants is recognized when
they are earned. Expenditures of federal awards are recognized in the accounting period when the liability
is incurred.
Note 3. Subrecipients
Of the federal expenditures presented in the schedule, the City provided federal awards to subrecipients
during the year ended December 31, 2012, as follows:
Amount
Federal CFDA Provided to
Program Title Number Subrecipients
Community Development Block Grant (CDBG) - Entitlement Grants 14.218 $ 1,309,897
Home Investment Partnership Program 14.239 449,568
ARRA - Renewable and Distributed Systems Integration/Smart
Grid Investment Grant 81.122 1,038,218
10
City of Fort Collins, Colorado
Summary Schedule of Prior Audit Findings
Year Ended December 31, 2012
Corrective Action or
Number Comment Status Other Explanation
Findings Related to the Basic Financial Statements
11-II-A There were matters that materially affected the December 31, 2010
Urban Renewal Authority governmental major fund that resulted in a
restatement to the related December 31, 2010 fund balance.
Corrected N/A
Findings and Questioned Costs for Federal Awards
11-III-A An external audit found that the City was not in compliance with certain
procurement requirements contained in the City's FTA grant agreement
Corrected N/A
11
City of Fort Collins, Colorado
Schedule of Findings and Questioned Costs
Year Ended December 31, 2012
I. Summary of the Independent Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
. Material weakness(es) identified? Yes No
. Significant deficiency(ies) identified? Yes No
. Noncompliance material to financial statements noted? Yes No
Federal Awards
Internal control over major programs:
. Material weakness(es) identified? Yes No
. Significant deficiency(ies) identified? Yes No
Type of auditor's report issued on compliance for major programs: Unmodified
. Any audit findings disclosed that are required to be reported in accordance with
Section 510(a) of Circular A-133? Yes No
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
20.500 and 20.507 Federal Transit Administration Grants
81.122 ARRA - Renewable and Distributed Systems Integration Grants;
ARRA - Smart Grid Investment Grant
81.128 ARRA - Energy Efficiency and Conservation Block Grant;
Main Street Energy Initiative (MSEI)
14.218 Community Development Block Grants (CDBG)
20.205 Highway Planning and Construction Grants
Dollar threshold used to distinguish between type A and type B programs: $941,965
Auditee qualified as low-risk auditee? Yes No
(Continued)
City of Fort Collins, Colorado
Schedule of Findings and Questioned Costs (Continued)
Year Ended December 31, 2012
12
II. Findings Related to the Financial Statement Audit as Required to be Reported in
Accordance with Generally Accepted Government Auditing Standards
A. Internal Control
None reported.
B. Compliance findings
None reported.
III. Findings and Questioned Costs for Federal Awards
A. Significant Deficiency in Administering Federal Awards
12-III-A
U.S. Department of Housing and Urban Development (Direct)
Community Development Block Grants (CFDA 14.218)
Federal Award Years: 2009-2012
Finding: The City does not have an adequate system for ensuring that certain program
income requirements of the CDBG program are being met.
Criteria: Management is responsible for establishing and maintaining effective internal
control over grant compliance.
Condition: The City had not effectively performed timely reconciliations of applicable
grant-related general ledger accounts, including cash collections from program income,
to the Integrated Disbursement and Information System (IDIS). Failure to reconcile the
IDIS and general ledger may place the City in noncompliance with grant requirements.
Context: Timely reconciliation of IDIS to general ledger accounts is important to
managing grant compliance and grant-related cash flows.
Effect: Potential noncompliance with grant requirements and increased likelihood of
delayed receipt of grant funding from failure to report program income.
Cause: The City did not have an adequate system in place to ensure that it properly
reconciled and reported program income collected in this federal program.
Recommendation: We recommend that the City establish a procedure to appropriately
and timely reconcile IDIS to the general ledger.
Response and Corrective Action Plan: The City agrees with the recommendation. With
the retirement of one employee and transition into the grant administrator position of
another, program income was inadvertently not receipted into the IDIS system. From the
date of this response, a Social Sustainability Grant Programs Administrator will receipt
program income into the federal IDIS system within 30 days of City Council approval of
funding for the Competitive Process.
City of Fort Collins, Colorado
Schedule of Findings and Questioned Costs (Continued)
Year Ended December 31, 2012
13
B. Instances of Noncompliance
12-III-B
U.S. Department of Housing and Urban Development (Direct)
Community Development Block Grants (CFDA 14.218)
Federal Award Years: 2009-2012
Finding: The City did not comply with suspension and debarment requirements of OMB
Circular A-133 for the CDBG grant program.
Criteria: OMB Circular A-133 dictates when a nonfederal entity enters into a contract or
purchase order with an entity (vendor or subrecipient), the nonfederal entity must verify
the entity is not suspended or debarred from participation in federal programs/grants
when expending $25,000 or more in a year.
Condition: The City did not verify all subrecipients were not suspended or debarred prior
to providing them with federal funds.
Questioned Costs: None
Context: Three subrecipients (receiving approximately $1.5 million in total awarded
amounts of federal funds) selected for testing were not verified for compliance.
Effect: The City is not in compliance with suspension and debarment requirements of
OMB Circular A-133.
Cause: Due to personnel turnover, the City was not aware this requirement extended to
subrecipients.
Recommendation: We recommend the City implement procedures to ensure all
subrecipients have not been suspended or debarred prior to entering into contracts, and
maintain documentation supporting this verification.
Response and Corrective Action Plan: The City agrees with the recommendation. All
applicants for funding through the competitive process will be required to submit proof of
active status and no suspension or debarment from receipt of federal grant funds.
Contract forms have been amended and hereafter will include an affirmation from the
applicant that the applicant is not suspended or debarred. For housing and public facility
contracts, Social Sustainability staff will check www.sam.gov immediately before contract
execution and include documentation of active status and no exclusions in the project file.
12-III-C
U.S. Department of Housing and Urban Development (Direct)
Community Development Block Grants (CFDA 14.218)
Federal Award Years: 2009-2012
Finding: The City did not comply with reporting requirements of OMB Circular A-133 for
the CDBG grant program.
Criteria: OMB Circular A-133 dictates that the City complete subaward reporting under
the Federal Funding Accountability and Transparency Act for all subrecipients receiving
non-ARRA federal funds. The requirements pertain to recipients (i.e. direct recipients) of
grants who make first-tier subawards.
City of Fort Collins, Colorado
Schedule of Findings and Questioned Costs (Continued)
Year Ended December 31, 2012
14
Condition: The City has not submitted any of these required reports for subrecipients
receiving CDBG federal funds.
Questioned Costs: None
Context: The City has six active subrecipients in the CDBG program, with total award
amounts of approximately $1.9 million.
Effect: The City is not in compliance with reporting requirements of OMB Circular A-133.
Cause: The City was not aware of this reporting requirement under the Transparency Act.
Recommendation: We recommend the City implement procedures to ensure all required
reports have been submitted in a timely manner.
Response and Corrective Action Plan: The City agrees with the recommendation.
Procedures have been implemented to ensure all required reports are submitted in a
timely manner.
15
City of Fort Collins, Colorado
Corrective Action Plan
Year Ended December 31, 2012
Current Anticipated Date
Number Comment Corrective Action Plan of Completion Contact Person
Findings Related to Federal Awards
Significant Deficiency in Administering Federal Awards
12-III-A The City does not have an adequate
system for ensuring that certain program
income requirements of the CDBG program
are being met.
See response and corrective action
plan at 12-III-A
December 31, 2013 John Voss
Controller/Assistant
Financial Officer
Findings and Questioned Costs for Federal Awards
12-III-B The City did not comply with suspension
and debarment requirements of OMB
Circular A-133 for the CDBG grant
program.
See response and corrective action
plan at 12-III-B
December 31, 2013 John Voss
Controller/Assistant
Financial Officer
12-III-C The City did not comply with reporting
requirements of OMB Circular A-133 for the
CDBG grant program.
See response and corrective action
plan at 12-III-C
December 31, 2013 John Voss
Controller/Assistant
Financial Officer
City of Fort Collins, Colorado
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2012
Prepared by the Finance Department:
John Voss, Controller/Assistant Financial Officer
Mindy Pfleiger, Senior Accountant
Becky Sullivan, Accountant
Karen Tracy, CPA, Accountant
Judi Vos, Cash Systems Coordinator
Louisa Liu, Administrative Aide
Katie Wiggett, Administrative Assistant
About our cover and section tabs…
The cover picture is Horsetooth Reservoir. Located just minutes west of Fort Collins, this six and one-half mile
long reservoir is named for the distinctive Horsetooth Rock overlooking the waters below. Horsetooth Reservoir is
an important water supply source for Fort Collins, providing on average about half of the City’s treated water
supply. It is owned and operated by the Northern Colorado Water Conservancy District as part of the Colorado-Big
Thompson project. Horsetooth stores water primarily from the Colorado River headwaters on the West Slope,
water which is transported under the continental divide through a complex system of pumps, reservoirs, tunnels and
canals. Featuring multiple campgrounds and picnic areas and surrounded by 1,900 acres of public lands,
Horsetooth Reservoir attracts over 500,000 people each year to fish, boat, camp, picnic and hike.
The “Introductory Section” tab shows a picture of City Park Pool, an outdoor pool located in City Park. City Park
Pool is one of the best places to be during hot summer days in Fort Collins. With its 30-foot drop slide, open curly
slide and geysers, it provides residents and guests a water park experience.
The “Financial Section” tab features the Museum of Discovery. The Museum of Discovery opened to the public on
November 10, 2012. Located at the corner of College and Cherry, this unique museum offers exploration into
hands-on science, history and culture.
The “Notes to the Basic Financial Statements Sections” tab features a picture of Sheldon Lake at City Park. For
100 years, City Park has been a center-point for family gatherings, cultural events and community celebrations. In
2012, the City celebrated the Park’s historic contribution to the community.
The “Supplementary Information” tab shows a picture of Mulberry Pool. Located near Downtown Fort Collins,
Mulberry Pool is one of three indoor aquatic facilities operated by the City of Fort Collins Recreation Department.
The pool is open year-round and includes a large child-friendly interactive play area with slides and other fun water
features. Mulberry Pool is a Fort Collins favorite for birthday parties and other celebrations. The pool is also
popular with lap swimmers looking for a workout.
The “Statistical Section” tab features Oak Street Plaza Park located in Downtown Fort Collins. The plaza was
development in 2006 with the intent of creating a special place for visitors to enjoy in Downtown Fort Collins. The
plaza’s design includes old style pavers, a grass area and stage, a decorative concrete pattern representing the
Poudre River and interactive water features including jumping water jets. Moveable tables and chairs allow visitors
to easily gather at their special location on the plaza. The plaza accommodates visitors who want to enjoy the shade
on a warm day, others who have brought their young children to enjoy the water features, and still others who are
present to enjoy an event at the stage. The plaza was funded with Neighborhood Parkland, Downtown Development
Authority, and Art in Public Places funding.
The “Other Schedules” tab features a picture of Old Town Square. Old Town Square is the most significant public-
private partnership involving the Downtown Development Authority. Old Town Square is a public space owned by
the DDA and managed by the Downtown Business Association. The square is in the heart of downtown Fort
Collins, and is surrounded by historic buildings, shops, galleries, a bike library and restaurants. The Old Town
Square stage is host to many summer performances and events.
City of Fort Collins Comprehensive Annual Financial Report i
Table of Contents
Page
INTRODUCTORY SECTION ................................................................................................................ 1
Letter of Transmittal ..................................................................................................................................... 3
Certificate of Achievement for Excellence in Financial Reporting .............................................................. 7
Organizational Chart ..................................................................................................................................... 8
Elected and Appointed Officials ................................................................................................................... 9
FINANCIAL SECTION ......................................................................................................................... 11
Independent Auditors’ Report .................................................................................................................... 13
MANAGEMENT’S DISCUSSION AND ANALYSIS ......................................................................... 15
BASIC FINANCIAL STATEMENTS .................................................................................................. 27
Government-wide Financial Statements
Statement of Net Position .............................................................................................................. 29
Statement of Activities .................................................................................................................. 30
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet .................................................................................................................. 32
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position ............................................................................................... 33
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................... 34
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities .......................... 35
Statement of Revenues, Expenditures, and Changes in Fund Balances
Actual and Budget - General Fund ................................................................................. 36
Statement of Revenues, Expenditures, and Changes in Fund Balances Actual
and Budget (Non-GAAP budgetary basis) - Keep Fort Collins Great Fund .................. 37
Statement of Revenues, Expenditures, and Changes in Fund Balances Actual
and Budget (Non-GAAP budgetary basis) - Transportation Services Fund ................... 38
Statement of Revenues, Expenditures, and Changes in Fund Balances Actual
and Budget (Non-GAAP budgetary basis) - Urban Renewal Authority Fund ............... 39
Proprietary Fund Financial Statements
Statement of Net Position ................................................................................................. 40
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................... 42
Statement of Cash Flows .................................................................................................. 44
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position ................................................................................. 46
Statement of Changes in Fiduciary Net Position .............................................................. 47
Notes to the Basic Financial Statements ........................................................................................ 49
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Modified Approach for City Streets Infrastructure Capital Assets ............................................................. 86
Pension and Other Postemployment Benefits Plan Schedule ..................................................................... 88
SUPPLEMENTARY INFORMATION
Non-Major Governmental Funds ................................................................................................................ 93
Balance Sheet ................................................................................................................................ 94
Statement of Revenues, Expenditures and Changes in Fund Balance ........................................... 98
ii City of Fort Collins Comprehensive Annual Financial Report
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Actual and Budget
Capital Expansion ........................................................................................................... 102
Sales and Use Tax ........................................................................................................... 103
Natural Areas .................................................................................................................. 104
Cultural Services and Facilities ...................................................................................... 105
Recreation ....................................................................................................................... 106
Cemeteries ...................................................................................................................... 107
Perpetual Care ................................................................................................................. 108
Community Development Block Grant (Non-GAAP budgetary basis) ......................... 109
Home Program Fund (Non-GAAP budgetary basis) ...................................................... 110
Transit Services (Non-GAAP budgetary basis) .............................................................. 111
Street Oversizing ........................................................................................................... 112
General Improvement District No. 1 .............................................................................. 113
General Improvement District No. 15-Skyview ............................................................. 114
Timberline/Prospect SID #94 ......................................................................................... 115
Debt Service ................................................................................................................... 116
Fort Collins Leasing Corporation ................................................................................... 117
Neighborhood Parkland (Non-GAAP budgetary basis) ................................................. 118
Conservation Trust (Non-GAAP budgetary basis) ......................................................... 119
Capital Project Fund ................................................................................................................................. 120
Schedule of Revenues, Expenditures, and Changes in
Fund Balance Actual and Budget (Non-GAAP budgetary basis) .............................................. 121
Enterprise Funds ....................................................................................................................................... 123
Schedule of Revenues, Expenses, and Changes in Net Position
Actual and Budget (Non-GAAP budgetary basis)
Light and Power .............................................................................................................. 124
Water .............................................................................................................................. 125
Wastewater ..................................................................................................................... 126
Storm Drainage ............................................................................................................... 127
Golf ................................................................................................................................. 128
Internal Service Funds .............................................................................................................................. 129
Statement of Net Position ............................................................................................................ 130
Statement of Revenues, Expenses and Changes in Net Position ................................................. 132
Statement of Cash Flows ............................................................................................................. 134
Schedule of Revenues, Expenses, and Changes in Net Position
Actual and Budget — Internal Service Funds
Equipment (Non-GAAP budgetary basis) ..................................................................... 136
Self-Insurance ................................................................................................................. 137
Data and Communications (Non-GAAP budgetary basis) ............................................. 138
Benefits ........................................................................................................................... 139
Utility Customer Service and Administrative (Non-GAAP budgetary basis) ................ 140
Fiduciary Funds ........................................................................................................................................ 141
Schedule of Changes in Net Position Held in Trust for
Pension Benefits—Actual and Budget ...................................................................................... 142
Statement of Agency Funds Assets and Liabilities ..................................................................... 143
Statement of Changes in Agency Funds Assets and Liabilities ................................................... 144
Component Unit Funds ............................................................................................................................. 145
Reconciliation of the Balance Sheet to the Statement of Net Position ........................................ 146
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities ............................................................................ 147
Balance Sheet ............................................................................................................................. 148
Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................ 149
Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund ............... 150
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Debt Service ................ 151
City of Fort Collins Comprehensive Annual Financial Report iii
STATISTICAL SECTION ................................................................................................................... 153
Net Position by Component – Last Ten Years ......................................................................................... 155
Changes in Net Position – Last Ten Years ............................................................................................... 156
Fund Balances, Governmental Funds – Last Ten Years ........................................................................... 157
Changes in Fund Balances, Governmental Funds – Last Ten Years ........................................................ 158
Taxable Sales by Category – Last Ten Years ........................................................................................... 159
Direct and Overlapping Sales Tax Rates – Last Ten Years ...................................................................... 160
Sales Tax Revenue Taxpayers by Industry ............................................................................................... 161
Ratios of Outstanding Debt by Type – Last Ten Years ............................................................................ 162
Ratios of General Bonded Debt Outstanding – Last Ten Years ............................................................... 163
Direct and Overlapping Governmental Activities Debt ............................................................................ 164
Legal Debt Margin Information – Last Ten Years ................................................................................... 165
Pledged Revenue Coverage – Last Ten Years .......................................................................................... 166
Demographic and Economic Statistics ..................................................................................................... 168
Principal Employers .................................................................................................................................. 169
Full-time Equivalent City Employees by Function/Program – Last Ten Years ....................................... 170
Operating Indicators by Function/Program – Last Ten Years .................................................................. 171
Capital Asset Statistics by Function/Program – Last Ten Years .............................................................. 172
OTHER SCHEDULES
Wastewater Utility Enterprise SEC Rule 15c2-12 Information ................................................................ 173
Storm Drainage Utility Enterprise SEC Rule 15c2-12 Information ......................................................... 178
Water Utility Enterprise SEC Rule 15c2-12 Information ......................................................................... 180
Local Highway Finance Report Form FHWA-536 .................................................................................. 185
iv City of Fort Collins Comprehensive Annual Financial Report
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2 City of Fort Collins Comprehensive Annual Financial Report
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City of Fort Collins Comprehensive Annual Financial Report 3
June 4, 2013
Honorable Mayor, Members of City Council, Residents and Customers of the City of Fort Collins, Colorado:
We submit, for your information and review, the Comprehensive Annual Financial Report (CAFR) for the City of
Fort Collins, Colorado (the City), for the year ended December 31, 2012.
This report consists of management’s representations concerning the finances of the City of Fort Collins.
Consequently, management assumes responsibility for both the accuracy of the data and the completeness and
fairness of the presentation, including all disclosures, based upon a comprehensive framework of internal control
that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits,
the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any
material misstatements. To the best of our knowledge and belief, the enclosed information is reported in a manner
designed to present fairly the financial position and activities of the various funds of the City. The City has
included all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities.
The City Charter and State law require an annual audit by independent certified public accountants selected by the
City Council. The goal of the independent audit was to provide reasonable assurance that the financial statements
of the City for the fiscal year ended December 31, 2012 are free of material misstatement. The independent
accountant, McGladrey LLP, concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2012 are fairly
presented in conformity with accounting principles generally accepted in the United States of America.
The independent audit of the financial statements of the City is required to complete the federally mandated “Single
Audit” designed to meet the special needs of the federal grantor agencies. The results of the single audit are
available in the City’s separately issued Single Audit Report (Compliance Report).
Accounting principles generally accepted in the United States of America 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). This letter of transmittal is designed to complement the
MD&A. The City’s MD&A can be found immediately following the report of the independent audit accountant.
Governmental Structure
The City of Fort Collins, incorporated in 1872, is located in north central Colorado, east of the continental divide,
and is approximately sixty miles north of Denver. It is the fourth largest city in Colorado with an estimated
population of 148,700 in 2012 and 151,000 in 2013. This is approximately 48% of the Larimer County population.
The City provides services that include community planning, general government, police, streets and highways,
cultural facilities, parks and recreation, transportation, golf courses and public utilities. The City’s utilities include
electric distribution, water treatment, wastewater treatment and storm drainage. Fire protection and library services
are not provided by the City but instead by Poudre Fire Authority (PFA) and Poudre River Public Library District.
The City is the primary financial supporter for PFA.
215 N. Mason Street
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
4 City of Fort Collins Comprehensive Annual Financial Report
The City’s financial statements include the Downtown Development Authority, Fort Collins Capital Leasing
Corporation, General Improvement District No. 1, General Improvement District No. 15 – Skyview and the Urban
Renewal Authority.
The City is a home rule city, organized under provisions of the Colorado Constitution. The City Charter, adopted
in 1954, 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 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 appointing service area directors and other staff
members
Financial Condition: Economy, Long-Term Financial Planning and Major Initiatives
Unemployment in Fort Collins remains a challenge due to modest growth and mixed conditions. At the end of
2012, the local unemployment rate stood at 6.0%, which compares favorably to the State rate of 8.0% and national
rate of 8.1%.
The essential economic indicators for the City were beginning to improve in 2012. The population grew
approximately 2.6%, and the number of residential building permits issued increased by 81.2%. The City relies
heavily on sales and use tax revenues, which were up 12.4%. Growth in inflation, as measured by the Denver-
Boulder-Greeley Consumer Price Index was up 3.7% in 2012.
Overall governmental fund revenue increased 15.9% in 2012. At year-end, the City held $292 million in
unrestricted net position, $24.5 million more than it held in 2011. Please see page 18 for more information about
the City’s total net position.
Data-driven and Transparent. Over the last decade, the City has undergone transformational change, deliberately
embracing transparency, accountability and continuous improvement. In 2012, the City launched the Community
Dashboard, a new online tool that measures the community’s progress in attaining key outcomes. Key metrics such
as voluntary code compliance, net percent change in local jobs, community energy use, number of local traffic
crashes and transit passengers per revenue hour are measured and monitored so the City can adapt certain programs
to ensure targets are met and improve performance where necessary. The Community Dashboard can be viewed at
fcgov.com/metrics. Another tool staff is using to become more data driven is the Monthly Operating Report
(MOR), an internal report prepared monthly by managers and reviewed by the Executive Lead Team. Management
uses this report to closely analyze their department’s budget and revenue. The report also communicates
departments’ projects, goals and needs to other departments.
MAX Project. As of May 2013, the City of Fort Collins’ $86 million infrastructure project is nearing the halfway
point: MAX buses are on order, and station construction is underway. Our new Bus Rapid Transit (BRT) system is
expected to be operational by May 2014. The MAX Project is much more than a transportation initiative, it is
about building on our existing investments to create a stronger community. According to the report by Economic &
Planning Systems, the Mason Corridor Project, which includes MAX, will encourage private economic
development along its 5 mile length. New zoning changes will also promote high density, mixed-use development
around the stations.
The Mason Corridor is a fundamental connection between the City, Colorado State University and local businesses
and neighborhoods. By pledging the local matching funds for the Mason Corridor project, the City expects to
leverage over $82 million in funding from other sources. The City’s funds will also stimulate additional economic
impacts such as an increase in property tax revenue and retail sales tax. The Mason Corridor is extremely cost
effective and will not only produce financial benefits for years to come, but will also preserve the environmental
quality of our community and enhance social equity for our residents.
City of Fort Collins Comprehensive Annual Financial Report 5
Fiscal Sustainability. In 2012, executive management identified the following two strategic objectives to improve
fiscal sustainability that will continue to be prioritized for the next few years: diversification of revenue and
development of a comprehensive citywide monthly operating report. To meet the first objective, City staff are
conducting several fee studies, looking into park maintenance fees, street maintenance fees and transit fees with the
hope of finding more stable revenue sources to balance the City’s heavy dependence on sales and use tax. The
second objective is currently being played out in the MOR. Staff have been preparing and reviewing the MOR
since the middle of 2012 and are continuing to find ways to make this report more beneficial to the City
organization.
Midtown Urban Renewal Authority Plan Area. The Foothills Mall redevelopment site sits in the middle of the
City’s Midtown Urban Renewal Plan area, a targeted area of community-wide importance. The Foothills Mall has
been on the decline for years; since 2001, sales tax revenues at the mall have declined 61%. In May 2013, the City
of Fort Collins’ City Council approved a $53 million public assistance package including a $45 million base
financial assistance package to help revitalize the mall and restore essential sales tax revenue. After the mall
reopens, revenues are expected to increase steadily by 2% per year. The new developer, Alberta Development
Partners, hopes to have the mall open in time for the 2014 holiday season.
The Mall project also includes an $8 million investment in City infrastructure, including a new Youth Activity
Center and an underpass that connects to the Mason Street Corridor. In conjunction with the new MAX Bus Rapid
Transit system, the Foothills project is also expected to be a catalyst for improvements to public infrastructure and
business redevelopment in the Midtown area. The project consists of retail, a commercial parking structure and up
to 800 multi-family dwelling units on 76.3 acres. Total project investment in the community is expected to be $312
million.
North College Avenue Urban Renewal Authority Plan Area. The North College area property and business owners
have shown robust support for growth and change in the corridor. Projects in the plan area include improvements
to streetscapes, the installation of continuous bike lanes and pedestrian sidewalks along College Avenue, and the
upgrading of the storm drainage system. A significant number of projects were completed in 2012 including the
North College Market Place, various business upgrades and the redesign of the Willox and College intersection.
The Museum of Discovery building, completed in 2011 on the south end of the URA area, opened to the public on
November 10, 2012. In 2012, the City’s major investment in the North College URA was the completion of the
streetscape between Vine and Conifer, a $10 million investment on top of the $17 million that the URA had already
invested in improving the Area. In 2014 and 2015, the City plans to continue improving the streetscape from
Conifer to Willox, another $10 million investment.
Supporting Job Creation. Woodward, a global technology company that has been in Fort Collins since 1955, has
outgrown its Drake facility and plans to expand its overall facilities to accommodate continued growth. With a
Business Assistance Agreement from the City of Fort Collins, Woodward plans to develop a campus of office,
manufacturing and testing facilities on the Link-N-Greens site, a City targeted redevelopment area. The project
will generate economic impacts during both construction and operations. The City’s financial assistance should
help retain approximately 700 current primary jobs as well as encourage the expansion of a business to include 700-
1,000 new primary jobs in Fort Collins (with 185-400 new jobs in Northern Colorado).
Debt Financing Initiatives. The Urban Renewal Authority (URA) intends to refinance a portion of the debt it
originally borrowed from the City in relation to the North College Area. The City also plans to issue new debt of
approximately $15 million to finance a new utility administration building downtown as well as to remodel the
Wood Street facility.
Other Information
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,
2011. This was the 25th 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
6 City of Fort Collins Comprehensive Annual Financial Report
comprehensive annual report. This report must satisfy both applicable legal requirements and accounting principles
generally accepted in the United States of America. A reproduction of the Certificate of Achievement is included 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.
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 2012 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 McGladrey
LLP, the firm that serves as the City’s external auditor. Through the challenges, we are resolved to deliver the best
possible services to the Fort Collins community.
Respectfully submitted,
Darin A. Atteberry Michael N. Beckstead
City Manager Chief Financial Officer
John W. Voss
Controller/Assistant Financial Officer
City of Fort Collins Comprehensive Annual Financial Report 7
8 City of Fort Collins Comprehensive Annual Financial Report
City of Fort Collins Comprehensive Annual Financial Report 9
City of Fort Collins, Colorado
Elected and Appointed Officials
As of December 31, 2012
Elected Officials
Karen Weitkunat ................................................................................................................................... Mayor
Ben Manvel ............................................................................................................ District 1 Councilmember
Lisa Poppaw .......................................................................................................... District 2 Councilmember
Aislinn Kottwitz..................................................................................................... District 3 Councilmember
Wade Troxell ......................................................................................................... District 4 Councilmember
Kelly Ohlson .............................................................................. Mayor Pro Tem, District 5 Councilmember
Gerry Horak ........................................................................................................... District 6 Councilmember
Appointed Officials
Darin Atteberry ......................................................................................................................... City Manager
Wanda Nelson ............................................................................................................................... City Clerk*
Stephen J. Roy .......................................................................................................................... City Attorney
Kathleen Lane ....................................................................................................................... Municipal Judge
*City Manager appointed, City Council approved
City Officials and Department Directors
Mike Beckstead ......................................................................................................... Chief Financial Officer
Karen Cumbo ............................................................... Planning, Development and Transportation Director
Kelly DiMartino............................................................................................... Assistant to the City Manager
Bruce Hendee...................................................................................................... Chief Sustainability Officer
John Hutto ............................................................................................................................... Chief of Police
Brian Janonis ..................................................................................................... Utilities Executive Director
Diane Jones ................................................................................................................... Deputy City Manager
Wendy Williams ........................................................................................................ Assistant City Manager
10 City of Fort Collins Comprehensive Annual Financial Report
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13
Independent Auditor's Report
To the Honorable Mayor and
Members of the City Council and City Manager
City of Fort Collins, Colorado
Fort Collins, Colorado
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Fort Collins, Colorado (the City) as of and for the year ended December 31, 2012, and
the related notes to the financial statements, which collectively comprise the City’s basic financial statements
as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of the City of Fort Collins,
Colorado, as of December 31, 2012, and the respective changes in financial position and, where applicable,
cash flows thereof and the respective budgetary comparison for the General Fund, the Keep Fort Collins Great
Fund, the Transportation Services Fund, and Urban Renewal Authority Fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
14
As explained in Note IV.G. to the basic financial statements, the City adopted GASB Statement No. 65, Items
Previously Reported as Assets and Liabilities, which restated beginning net position for items previously
reported as assets.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis on pages 15 through 26, the modified approach for City Streets Infrastructure capital
assets on pages 86 through 87, the Pension Plans Schedules of Funding Progress on page 88 and Other
Postemployment Benefits Plan Schedule of Funding Progress on page 89 be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Fort Collins, Colorado’s basic financial statements. The combining and individual nonmajor
fund financial statements and other schedules, listed in the table of contents as supplementary information, and
the other information, such as the introductory and statistical section are 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 and other schedules, is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, this
information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The accompanying introductory, statistical sections and other schedules, as listed in the table of contents, have
not been subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2013 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 grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering City of Fort Collins, Colorado’s internal control over financial reporting and
compliance.
Denver, Colorado
May 23, 2013
City of Fort Collins Comprehensive Annual Financial Report 15
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 year ended December 31, 2012. 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 29 of this report, respectively.
Financial Highlights
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at December 31, 2012 by $1,516.7 million (net position). Of the net position balance, $292.5
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 position increased by $85.0 million (5.9%). The governmental net position increased by
$55.0 million (7.1%) and the business-type position increased by $30.0 million (4.6%).
• The General Fund, the City’s primary operating fund, ended 2012 with a $55.3 million fund balance, an
increase of $15.1 million (37.6%) on a current financial resource basis. Of this amount, $46.7 million is
spendable and complies with City policy.
• The City’s total long-term debt decreased by $14.1 million (9.2%) during the current year. Within that
activity, the City’s governmental debt decreased by $3.4 million and business-type debt decreased by $10.7
million. There was one debt transaction in 2012. There were $34.4 million in Certificates of Participation
(COPs) issued since long-term interest rates were favorable. The net effective interest rate on these bonds is
1.82%. The proceeds were used to retire the remaining 2004 COPs. The net present value savings
accomplished through this refunding was $4.8 million and equates to 13.4% of the refunded principal.
Overview of the Financial Statements
This discussion and analysis is 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.
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 position presents information on all of the City’s assets and liabilities. The difference between
assets, deferred outflows of resources, liabilities and deferred inflows of resources are reported as net position.
Over time, increases and decreases in net position 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 position has changed during the fiscal
year just ended. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of the related cash flows. 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
16 City of Fort Collins Comprehensive Annual Financial Report
activities of the City include general government, public safety, cultural, parks, recreation, and natural areas,
planning and development services, transportation, and interest on long term debt. 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 Fort Collins, Colorado Downtown Development
Authority (DDA) as a discretely presented component unit of the City. See Note 1 in the notes to the City’s
financial statements (page 50) for more details regarding the DDA and its 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, deferred inflows of resources, liabilities, deferred outflows of resources, 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, deferred inflows of resources, liabilities, deferred outflows of resources,
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.
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, Keep Fort Collins Great, Urban
Renewal Authority Fund, the Transportation Special Revenue Fund and the Capital Projects Fund. These five 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 32-39 of this report.
Proprietary funds. The City maintains two different types of proprietary funds, enterprise and internal service
funds. 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-type activities in the government-wide financial
statements. The City uses enterprise funds 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
City of Fort Collins Comprehensive Annual Financial Report 17
by the City, its communications system, its fleet of vehicles and its self-insurance programs. 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. 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-type 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.
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 40-45 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.
The basic fiduciary fund financial statements can be found on pages 46-47 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 49-85 of this report.
Other Information. The City has elected to use the modified approach to account for and report its street
infrastructure capital assets and the pension and other postemployment benefits plan. 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 86-89 of this report.
Combining Statements. The combining statements referred to earlier in connection with the non-major
governmental funds, internal service funds, fiduciary funds, and the component unit funds are presented following
the required supplementary information. In addition, budget statements for the Capital Projects Fund and the major
enterprise funds are also presented following the required supplementary information.
18 City of Fort Collins Comprehensive Annual Financial Report
Government-Wide Financial Analysis
Statement of Net Position
The following table reflects the condensed Statement of Net Position.
For more detailed information see the Statement of Net Position on page 29 of this report.
By far, the largest portion of the City’s net position, $1,170.7 million (77.2%) is invested in capital assets (e.g.,
land, buildings, machinery and equipment), less any debt used to acquire those assets that is still outstanding. Net
invested in capital assets increased by $51.5 million (4.6%) in 2012. 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 position, $53.5 million (3.5%), represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position, $292.5 million
(19.3%), may be used to meet the City’s ongoing obligations to its citizens and creditors.
The City’s total net position increased by $85.0 million in 2012. Unrestricted net position increased $24.5 million
and were used to support core operations, maintain infrastructure, and invest in critical capital assets. Additional
details of capital asset activity can be seen on pages 24-25.
2012 2011 2012 2011 2012 2011
Current and other assets as restated $ 224,250 $ 194,574 $ 192,069 $ 195,086 $ 416,319 $ 389,660
Capital assets 706,974 679,351 601,541 576,916 1,308,515 1,256,267
Total assets as restated 931,224 873,925 793,610 772,002 1,724,834 1,645,927
Deferred Outflows of Resources 1,580 - 1,022 - 2,602 -
Other liabilities 18,853 30,334 16,256 34,028 35,109 64,362
Long-term liabilities 60,489 63,722 96,551 86,211 157,040 149,933
Total liabilities 79,342 94,056 112,807 120,239 192,149 214,295
Deferred Inflows of Resources 18,593 - 17 - 18,610 -
Net position:
Net investment in capital assets 662,461 628,758 508,284 490,511 1,170,745 1,119,269
Restricted 52,465 43,327 995 1,025 53,460 44,352
Unrestricted as restated 119,944 107,784 172,529 160,227 292,473 268,011
Total net position as restated $ 834,870 $ 779,869 $ 681,808 $ 651,763 $ 1,516,678 $ 1,431,632
Statement of Net Position
as of December 31
(amounts expressed in thousands, totals may not add due to rounding)
Governmental
Activities
Business-type
Activities
Total
Primary Government
City of Fort Collins Comprehensive Annual Financial Report 19
Changes in Net Position. The following table reflects a condensed summary of activities and changes in net
position.
For more detailed information see the Statement of Activities on pages 30-31 of this report.
The above condensed summary of the City’s governmental and business type activities for the period ended
December 31, 2012 reflects net position increasing by $85.0 million (5.9%). The prior period is also included for
comparative purposes. In addition, revenue and expense graphs have been presented on pages 20-21 to enhance the
reader’s understanding of the current year activities.
S tatement of Activities & Changes in Net Position
as of December 31
(amounts expressed in thousands, totals may not add due to rounding)
Governmental Business-type Total
Activities Activities Primary Government
2012 2011 2012 2011 2012 2011
Revenues:
Program revenues:
Charges for services $ 29,412 $ 25,241 $ 176,389 $ 160,888 $ 205,801 $ 186,129
Operating grants & contributions 9,284 13,712 6 131 9,290 13,843
Capital grants and contributions 31,678 14,784 15,979 11,661 47,657 26,445
General revenues:
Sales & use taxes 109,732 97,589 - - 109,732 97,589
Property taxes 18,188 17,742 - - 18,188 17,742
Occupational privilege taxes 2,560 2,433 - - 2,560 2,433
Lodging taxes 1,012 909 - - 1,012 909
Intergovernmental not restricted to programs 10,681 10,274 - - 10,681 10,274
Investment earnings 1,998 2,601 2,227 2,919 4,225 5,520
Miscellaneous 1,246 1,019 1,613 1,498 2,859 2,517
Total Revenues 215,790 186,304 196,215 177,098 412,005 363,402
Expenses:
General government 34,645 33,674 - - 34,645 33,674
Public safety 55,633 51,313 - - 55,633 51,313
Cultural, parks, recreation and natural areas 32,448 29,755 - - 32,448 29,755
Planning and development 9,502 11,053 - - 9,502 11,053
Transportation 42,249 38,540 - - 42,249 38,540
Interest on long-term debt 2,148 2,523 - - 2,148 2,523
Light & power - - 101,513 97,057 101,513 97,057
Water - - 22,169 19,941 22,169 19,941
Wastewater - - 15,872 14,163 15,872 14,163
Storm drainage - - 8,119 8,407 8,119 8,407
Golf - - 2,661 2,547 2,661 2,547
Total expenses 176,625 166,857 150,333 142,115 326,958 308,973
Increase in net position before transfers 39,165 19,447 45,882 34,982 85,046 54,428
Transfers 15,837 13,486 ( 15,837 ) ( 13,486 ) - -
Increase in net position 55,001 32,934 30,045 21,496 85,046 54,429
Net position - beginning as restated 779,869 746,935 651,763 630,267 1,431,631 1,377,203
Net position - ending as restated $ 834,870 $ 779,869 $ 681,808 $ 651,763 $ 1,516,678 $ 1,431,631
20 City of Fort Collins Comprehensive Annual Financial Report
Governmental Activities:
Charges for services
13.6%
Operating grants &
contributions
4.3%
Capital grants and
contributions
14.7%
Sales & use taxes
50.9%
Property taxes
8.4%
Occupational privilege
taxes 1.2%
Intergovernmental not
restricted to programs
4.9% Investment earnings
0.9%
Other
1.1%
2012 Revenues by Source -Governmental Activities
$215.8 million
$-
$10
$20
$30
$40
$50
$60
Millions
Program Expenses
Program Revenue
2012 Expenses Compared to Program Revenues - Governmental Activites
City of Fort Collins Comprehensive Annual Financial Report 21
Business-type Activities:
Charges for
services
89.9%
Capital grants and
contributions
8.2%
Investment
earnings
1.1%
Miscellaneous
0.8%
2012 Revenues by Source - Business-type Activities
$196.2 million
$-
$20
$40
$60
$80
$100
$120
$140
Light & power Water Wastewater Storm drainage Golf
Millions
2012 Expenses Compared to Program Revenues - Business Activities
Program Expenses
Program Revenue
22 City of Fort Collins Comprehensive Annual Financial Report
Governmental activities. Governmental activities increased the City’s net position by $55.0 million, accounting for
64.7% of the City’s $85.0 million overall increase in net position. Major variations are due to the following:
Charges for services for 2012 increased by $4.2 million in 2012. Transportation is up due to increased
activity in development because of the stronger economy. Building development charges account for
increased revenues in street oversizing fees ($1.9 million), traffic construction ($.6 million), and
construction inspections and development review fees ($.3 million).
Operating grants and contributions decreased $4.4 million in 2012. There was a decrease in the operating
grants in the Transit fund of $2.2 million as well as a decrease in Planning and Development of $.9 million
for the Alley Enhancement Project.
Capital grants and contributions increased $16.9 million in 2012. This is due to an increase in the
Transportation grants, specifically the Mason Street Corridor project.
Sales and use tax collections increased $12.1 million from 2011 collections. Part of this increase is due to
the collection of the new Keep Fort Collins Great sales tax which went into effect in January 2011. This
special revenue fund contributed a $1.9 million increase in sales tax revenue in 2012. The additional
remaining amount is due to the economic rebound and sales and use tax regular increased collections.
The governmental funds had a $9.8 million increase in expenditures. Budget constraints caused several
expense reductions across city departments in prior years. Many maintenance and repairs projects were
postponed in 2010; however, due to the economy being stronger, the facility operations division reinstated
various maintenance and repair projects. There was also additional spending in this category with Keep
Fort Collins Great initiatives in Economic Health and other high performing government categories.
There was a $4.3 million increase in public safety expenditures in 2012. These are directly related to the
Keep Fort Collins Great initiatives specifically for public safety and hiring additional officers that were on
staff for the entire year in 2012.
There was a $3.7 million increase in transportation expenditures. This increase is directly related to the
Keep Fort Collins Great initiatives ($1.4 million) as well as increased street maintenance ($.3 million).
There was also $1.5 million spent on the I-25/State Highway 392 interchange improvement project.
Business-type activities. Business-type activities in the utility funds increased the City’s net position by $30.0
million, accounting for 35.3% of the City’s $85.0 million increase in net position. Major variations are due to the
following:
Charges for services in the business-type activities totaled $176.4 million for an increase of $15.5 million
(9.6%) from 2011 to 2012. Light and Power operating revenues increased 9% due to an 8.3% retail rate
increase in 2012 and a small increase in kilowatt-hour sales. Water operating revenues increased 17.5%
compared to 2011. The large increase is due to both a 6% water rate increase and the increase in outdoor
demand due to hot summer temperatures. Wastewater operating revenues increased 9.4% from 2011,
largely due to the 8% rate increase. Storm drainage rates remained unchanged in 2012 and the fund’s
revenues increased 0.9% due to modest customer growth.
Other Utility revenues totaled $19.8 million an increase of $3.6 million compared to 2011. Increases in
utilities revenues include: contributions, plant investment fees and development fees increased by $3.4
million compared to 2011 due to an increase in development activity; and $2.4 million increase in Light
and Power grant revenue associated with the Smart Grid Investment Grant. Total Light and Power grant
revenues were offset with reductions in other State and Federal grant revenues.
Total business-type expenses totaled $150.3 million in 2012, an increase of $8.2 million compared to 2011.
Purchase power in the Light and Power Fund accounts for $4.7 million of the increase. The purchase
power increase is a result of a 6.4% rate increase from Platte River Power Authority and increased energy
City of Fort Collins Comprehensive Annual Financial Report 23
and demand in 2012. Water Fund expenses increased $2.2 million, largely due to the $1.3 million
mitigation efforts for the High Park Fire. Payment to the General Fund in lieu of taxes increased $0.8
million due to increases in Light and Power, Water, and Wastewater operating revenues.
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
requirements. In particular, unrestricted 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 December 31, 2012, the total Governmental fund balances were $142.7 million, an increase of $20.9 million
(17.2%) compared to the prior year. There was $13.8 million non-spendable, restricted was $52.5 million,
committed was $31.1 million, assigned was $35.9 million, and unassigned was $9.4 million. The explanations for
these restrictions are contained in the Notes to the Basic Financial Statements, section III.F.
The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of
major capital facilities. The fund experienced a net increase of $.3 million which resulted in a December 31, 2012
fund balance of $20.4 million. Restricted was $16.9 million for voter approved projects and assigned was $3.5
million. The largest capital project expenditures were: $1.3 million for the Fort Collins Museum/Discovery Center
Facility; $15.3 million for the Mason Street Transportation Corridor; and $6.2 million for improvements along
North College from Vine to Conifer.
The General Fund is the chief operating fund of the City. At December 31, 2012, the total fund balance was $55.3
million. The spendable fund balance was $46.8 million. The General Fund increased $15.1 million in 2012
primarily due to higher taxes collected of $8.0 million and a one-time transfer from the Sales & Use Tax Fund for
$5.9 million.
The Keep Fort Collins Great Special Revenue Fund is a new major governmental fund of the City as of 2011. As
of December 31, 2012, the total fund balance which is restricted due to voter constraints was $10.3 million. This is
an increase of $4.0 million due to the higher sales tax revenue of $1.9 million from last year. Also, there are
various construction projects that are currently in process that were not completed at the end of 2012.
The Transportation Services Special Revenue Fund is another major governmental fund of the City. As of
December 31, 2012, the fund balance was $13.6 million. It increased by $.4 million. The increase is primarily due
to larger revenue collected in sales tax and collections of charges for services. The fund balance consisted of $.9
million restricted for Civic Center Parking Structure and assigned was $12.7 million.
The Urban Renewal Authority Fund primary purpose is to remedy blight by stimulating and leveraging private
capital investment, using tax increment financing in private development projects and public improvement projects.
The December 31, 2012 fund balance was an unassigned negative $14.5 million and $5.3 million was
nonspendable. The negative balance was due to advances the fund received from other funds for redevelopment of
the North College Corridor Plan area. These advances will be paid back as tax increment funding (TIF) revenues
are collected.
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 position balances and the growth in net position
of the City’s proprietary funds (including the major enterprise funds) are reflected in the following table.
24 City of Fort Collins Comprehensive Annual Financial Report
General Fund Budgetary Highlights
The final budget appropriations were $9.4 million higher than the original budget appropriations. They are
summarized below:
The 2012 ordinances created new budget appropriations for the following items: $8.6 million for purchase
orders that were carried forward from 2011 and $2.0 million for police department programs including the
radio replacement project.
The variance between actual expenditures and the final budget amounted to $6.8 million (7.2%) in unspent
appropriations. There were significant spending reductions across the City due to budget constraints and the
difficult economy in prior years. This philosophy has been maintained for accountability to the citizens.
The decreased expenditures in the general government were primarily due to the following: The
Affordable Housing Trust and Human Services Program had $1.1 million unspent appropriations due to
timing regarding their fiscal year ending in September and the new budget cycle starting in October; $1.6
million in unspent appropriations in facility support services and maintenance; $1.5 million unspent in
contingency and pending lease purchase equipment; and $1.5 million in police services due to timing of
hiring new officers.
The City expects to maintain its solid financial condition by continuous control over expenditures and
through the evaluation of viable options for enhancing 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, 2012 amounted to $1,308.5 million (net of accumulated depreciation). This was an increase of $52.2
million (4.2%). 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.
The City has elected to use the modified approach for infrastructure reporting of its street system infrastructure.
The City completes assessments of its entire street system on a 3 year cycle. The most recent 3 year assessment
was completed as of December 31, 2012. It resulted in a Pavement Condition Index (PCI) rating of 71. It met the
City’s policy of achieving a good (Level of Service B) rating. For 2012, the City spent $14.3 million on its street
maintenance program as compared to $14.3 million, the asset management system estimate needed to maintain
streets at Level of Service B. For more detailed information, see the Required Supplementary Information on pages
86-87 of this report.
(amounts expressed in thousands, totals may not add due to rounding)
Unrestricted Change in Net
Net Position Position for Year
Proprietary Funds at 12/31/12 Ended 12/31/12
Light & Power $ 53,399 $ 11,109
Water 72,623 7,711
Wastewater 30,894 5,906
Storm Drainage 17,259 7,090
Total of Major Enterprise Funds 174,175 31,816
Other Enterprise Fund - Golf 603 326
Total Enterprise Funds 174,778 32,142
Internal Service Funds 22,184 (387)
Total Proprietary Funds $ 196,962 $ 31,755
Change in Net Position - Proprietary Funds
City of Fort Collins Comprehensive Annual Financial Report 25
Major capital improvements during this fiscal year included the following:
Governmental Activities
Completed in 2012:
Additions to Street Infrastructure - $6.4 million
Turnberry Road Improvements - $1.5 million
Police Computer Aided Dispatch Replacement - $1.0 million
Mason/Troutman Underpass - $1.2 million
Other capital assets in 2012:
Fort Collins Science Discovery Center Facility - accumulated costs to date - $13.4 million
Bridge Replacement Projects - accumulated costs to date - $5.6 million
Mason Street Transportation Corridor - accumulated costs to date - $27.7 million
Proprietary Activities
Completed in 2012:
Various Subdivision and Equipment Upgrade Projects - $7.8 million
Various Water Rights - $1.2 million
Forney Property Acquisition - $1.1 million
Other capital assets in 2012:
Smart Grid Investment Grant Project – accumulated costs to date - $18.1 million
Advanced Metering Infrastructure – accumulated costs to date - $3.1 million
Mulberry Wastewater Redundancy Project – accumulated costs to date - $6.9 million
Additional information on the City’s capital assets can be found in Note III.C. on pages 62-63 of this report.
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $139.0 million (bonds,
certificates of participation, capital leases, etc.). This was a decrease of $14.1 million (9.2%). Of this amount, $90.0
million represents bonds secured by specified revenue sources (i.e., revenue bonds). The remaining $49.0 million
represents debt primarily secured by the new facilities or equipment being financed by certificates of participation,
assignment of lease payments or capital leases.
Governmental Business-type Total
Activities Activities Primary Government
2012 2011 2012 2011 2012 2011
Land, rights of way, water rights, other $ 203,022 $ 202,339 $ 67,989 $ 65,510 $ 271,011 $ 267,849
Street system infrastructure 265,485 259,055 - - 265,485 259,055
Construction in progress 54,466 45,071 88,308 60,408 142,774 105,479
Infrastructure 8,612 8,101 - - 8,612 8,101
Buildings and improvements 92,882 95,162 139,766 144,433 232,648 239,595
Improvements other than buildings 59,610 46,186 291,663 292,889 351,273 339,075
Machinery and equipment 22,897 23,437 13,815 13,676 36,712 37,113
Total capital assets $ 706,974 $ 679,351 $ 601,541 $ 576,916 $ 1,308,515 $ 1,256,267
(amounts expressed in thousands, totals may not add due to rounding)
Capital Assets Net of Depreciation
as of December 31
26 City of Fort Collins Comprehensive Annual Financial Report
Additional information on the City’s long-term obligations can be found in Note III.E on pages 65-73 of this report.
Requests for Information
The City’s financial statements are designed to provide users 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 Controller/Assistant Financial Officer’s attention at the
following address:
Controller/Assistant Financial Officer
215 North Mason Street 2nd Floor
PO Box 580
Fort Collins, CO 80522-0580
Outstanding Debt
as of December 31
(amounts expressed in thousands)
Governmental Business-type Total
Activities Activities Primary Government
2012 2011 2012 2011 2012 2011
Revenue bonds $ - $ 340 $ 90,007 $ 100,380 $ 90,007 $ 100,720
Certificates of participation 41,845 45,870 1,095 1,230 42,940 47,100
Assignment of lease payments 501 545 1,594 1,734 2,095 2,279
Capital leases 3,719 2,755 208 245 3,927 3,000
Total outstanding debt $ 46,065 $ 49,510 $ 92,904 $ 103,589 $ 138,969 $ 153,099
City of Fort Collins Comprehensive Annual Financial Report 27
BASIC FINANCIAL STATEMENTS
28 City of Fort Collins Comprehensive Annual Financial Report
THIS PAGE INTENTIONALLY LEFT BLANK.
City of Fort Collins Comprehensive Annual Financial Report 29
STATEMENT OF NET POSITION
DECEMBER 31, 2012
Primary Government -- City of Fort Collins
Governmental Business-type Component
Activities Activities Total Unit
ASSETS
Cash and cash equivalents $ 20,026,391 $ 18,195,164 $ 38,221,555 $ 734,849
Investments 139,645,519 148,483,210 288,128,729 6,076,092
Receivables:
Property taxes 18,564,143 - 18,564,143 3,376,383
Sales and use taxes 11,093,899 - 11,093,899 -
Accounts 3,950,348 20,774,255 24,724,603 -
Notes 5,553,939 775,948 6,329,887 -
Interest 368,373 392,167 760,540 45,354
Prepaid 220,624 - 220,624 869
Internal Balances component unit 35,000 - 35,000 (35,000)
Internal Balances 1,824,566 (1,824,566) - -
Due from other governments 8,039,728 - 8,039,728 3,472
Inventories of materials and supplies 579,355 4,277,940 4,857,295 -
Inventory of real property held for resale 2,896,665 - 2,896,665 135,464
Restricted cash and cash equivalents 189,629 995,383 1,185,012 -
Restricted investments - - - 1,250,000
Investment in joint venture 11,262,355 - 11,262,355 -
Capital assets (non-depreciable) 522,973,317 156,297,802 679,271,119 2,528,747
Capital assets (net of accumulated
depreciation) 184,000,574 445,242,852 629,243,426 2,853,874
Total Assets 931,224,425 793,610,155 1,724,834,580 16,970,104
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,580,488 1,021,591 2,602,079 -
Total Deferred outflows of resources 1,580,488 1,021,591 2,602,079 -
LIABILITIES
Accounts payable 15,217,831 15,204,355 30,422,186 19,121
Interest payable 99,611 330,794 430,405 52,050
Wages payable 1,780,827 721,116 2,501,943 10,035
Due to other governments 142,284 - 142,284 -
Unearned revenue 1,457,767 - 1,457,767 -
Deposits held 154,730 - 154,730 -
Non-Current liabilities
Due within one year 12,349,980 12,863,595 25,213,575 1,298,537
Due in more than one year 48,138,952 83,686,933 131,825,885 10,510,000
Total Liabilities 79,341,982 112,806,793 192,148,775 11,889,743
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 18,564,143 - 18,564,143 3,376,383
Deferred charge on refunding 28,426 17,049 45,475 -
Total Deferred inflows of resources 18,592,569 17,049 18,609,618 3,376,383
NET POSITION
Net investment in capital assets 662,460,759 508,284,136 1,170,744,895 5,382,621
Restricted for:
Debt service - 995,383 995,383 2,045,581
Capital projects 30,133,326 - 30,133,326 -
Gifts and grants 9,896,717 - 9,896,717 -
Agreements 7,686,443 - 7,686,443 -
Emergencies 4,749,415 - 4,749,415 -
Unrestricted (deficit) 119,943,702 172,528,385 292,472,087 (5,724,224)
Total Net Position $ 834,870,362 $ 681,807,904 $ 1,516,678,266 $ 1,703,978
The notes to the financial statements are an integral part of this statement.
30 City of Fort Collins Comprehensive Annual Financial Report
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2012
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
FUNCTIONS/ PROGRAM ACTIVITIES:
Primary Government:
Governmental Activities:
General government $ 34,645,130 $ 6,457,507 $ 67,816 $ 660,803
Public safety 55,632,682 1,547,571 1,070,630 408,522
Culture, parks, recreation and natural areas 32,448,138 7,680,496 1,437,746 5,907,521
Planning and development 9,502,115 2,578,729 2,901,808 -
Transportation 42,249,356 11,147,242 3,806,079 24,701,346
Interest on long-term debt 2,147,891 - - -
Total Governmental Activities 176,625,312 29,411,545 9,284,079 31,678,192
Business-type Activities:
Light & Power 101,512,579 109,776,481 4,018 8,975,333
Water 22,169,293 28,553,350 - 3,448,556
Wastewater 15,871,937 20,881,700 - 2,119,535
Storm Drainage 8,118,557 14,081,535 2,077 1,435,625
Golf 2,660,508 3,096,231 - -
Total Business-type Activities 150,332,874 176,389,297 6,095 15,979,049
Total Primary Government 326,958,186 205,800,842 9,290,174 47,657,241
Component Unit:
Downtown Development Authority $ 6,096,130 $ 40,436 $ 43,518 $ -
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 31
Net (Expense) Revenue and Changes in Net Assets
Primary Government - City of Fort Collins
Governmental Business-type Component
Activities Activities Total Unit
$ (27,459,004) $ $ (27,459,004) $
(52,605,959) (52,605,959)
(17,422,375) (17,422,375)
(4,021,578) (4,021,578)
(2,594,689) (2,594,689)
(2,147,891) (2,147,891)
(106,251,496) (106,251,496)
17,243,253 17,243,253
9,832,613 9,832,613
7,129,298 7,129,298
7,400,680 7,400,680
435,723 435,723
- 42,041,567 42,041,567
(106,251,496) 42,041,567 (64,209,929)
(6,012,176)
General Revenues
Sales & use taxes 109,732,062 - 109,732,062 -
Property taxes 18,187,824 - 18,187,824 3,123,150
Occupational privilege taxes 2,559,562 - 2,559,562 -
Lodging taxes 1,011,840 - 1,011,840 -
Intergovernmental not restricted to programs 10,680,931 - 10,680,931 -
Investment earnings 1,997,855 2,227,344 4,225,199 106,391
Miscellaneous 1,246,356 1,612,961 2,859,317 (1,268,279)
Transfers 15,836,538 (15,836,538) - -
Total general revenues and transfers 161,252,968 (11,996,233) 149,256,735 1,961,262
Changes in Net Position 55,001,472 30,045,334 85,046,806 (4,050,914)
Net Position--January 1, as restated 779,868,890 651,762,570 1,431,631,460 5,754,892
Net Position--December 31 $ 834,870,362 $ 681,807,904 $ 1,516,678,266 $ 1,703,978
32 City of Fort Collins Comprehensive Annual Financial Report
GOVERNMENTAL FUNDS
BALANCE SHEET
DECEMBER 31, 2012
Primary Government
Keep Trans- Urban Total
Fort Collins portation Capital Renewal Other Total
General Great Services Projects Authority Governmental Governmental
ASSETS
Cash and cash equivalents $ 4,618,195 $ 993,598 $ 1,332,277 $ 2,115,633 $ 188,489 $ 5,214,946 $ 14,463,138
Investments 37,886,483 8,170,148 10,770,182 17,477,491 1,558,040 43,290,381 119,152,725
Receivables
Property taxes 16,956,773 - - - 1,310,908 296,462 18,564,143
Sales and use taxes 6,876,155 2,240,677 659,022 - - 1,318,045 11,093,899
Accounts, net 762,468 - 1,713,316 383,039 - 415,923 3,274,746
Notes and loans 125,000 - - - 5,303,939 125,000 5,553,939
Interest 96,144 19,359 28,804 46,852 4,555 118,731 314,445
Prepaid item 200 - 150 - - 6,914 7,264
Due from component unit 35,000 - - - - - 35,000
Advances to other funds 5,496,830 - - 2,700,000 - 4,834,743 13,031,573
Due from other governments 72,569 - 311,796 7,086,531 - 560,586 8,031,482
Inventory of real property held for resale 2,896,665 - - - - - 2,896,665
Restricted - cash and cash equivalents 16,474 - 79,573 - - - 96,047
Total Assets 75,838,956 11,423,782 14,895,120 29,809,546 8,365,931 56,181,731 196,515,066
LIABILITIES
Accounts payable, accruals, and other 2,501,088 1,016,749 915,241 7,887,836 37,796 1,615,279 13,973,989
Wages payable 982,193 104,185 202,299 10,666 2,599 313,883 1,615,825
Due to other governments 45,701 - 2,147 - - 94,436 142,284
Unearned revenue 100,436 - - - - 1,355,586 1,456,022
Advance from other funds - - - - 16,242,029 - 16,242,029
Deposits held - - - - - 154,730 154,730
Total Liabilities 3,629,418 1,120,934 1,119,687 7,898,502 16,282,424 3,533,914 33,584,879
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 16,956,773 - - - 1,310,908 296,462 18,564,143
Unavailable revenue - grants - - 166,084 1,506,364 - 17,000 1,689,448
Total Deferred inflows of resources 16,956,773 - 166,084 1,506,364 1,310,908 313,462 20,253,591
FUND BALANCES (DEFICIT)
Nonspendable 8,518,695 - 150 - 5,303,939 6,914 13,829,698
Restricted 9,750,613 10,302,848 898,005 16,939,691 - 14,574,744 52,465,901
Committed 588,567 - - - - 30,542,811 31,131,378
Assigned 12,439,252 - 12,711,194 3,464,989 - 7,270,589 35,886,024
Unassigned 23,955,638 - - - (14,531,340) (60,703) 9,363,595
Total Fund Balances (Deficit) 55,252,765 10,302,848 13,609,349 20,404,680 (9,227,401) 52,334,355 142,676,596
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficit) $ 75,838,956 $ 11,423,782 $ 14,895,120 $ 29,809,546 $ 8,365,931 $ 56,181,731 $ 196,515,066
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 33
RECONCILIATION OF THE BALANCE SHEET OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2012
Amounts reported for governmental activities in the statement of net position (page 29) are different because:
Total fund balances - governmental funds (page 32) $ 142,676,596
Capital assets of $819,542,534 net of accumulated depreciation of $117,163,959 used in governmental
activities are not financial resources, therefore, are not reported in the funds. 702,378,575
City's joint venture equity interest in Fort Collins/Loveland Airport. 11,262,355
Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred in the funds. 1,689,448
Internal service fund allocated to business type activities 5,035,021
Long-term liabilities are not due and payable in the current period and therefore are
not reported in funds:
Interest payable (94,423)
Certificates of Participation (41,845,000)
Assignment of lease (501,222)
Deferred charge on refunding, net 1,552,062
Capital lease (1,337,304)
Compensated absences (4,610,925)
Net pension obligation (2,765,738)
Postemployment healthcare obligation (1,246,252)
(50,848,802)
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/deferred ouflows of resources and liabilities/deferred
inflows of resources of the internal service funds are included in the
governmental activities in the statement of net position. 22,677,169
Net position of governmental activities (page 29) $ 834,870,362
The notes to the financial statements are an integral part of this statement.
34 City of Fort Collins Comprehensive Annual Financial Report
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2012
Primary Government
Keep Trans- Urban Total
Fort Collins portation Capital Renewal Other Total
General Great Services Projects Authority Governmental Governmental
REVENUES
Taxes $ 88,612,237 $ 21,752,164 $ 6,629,784 $ - $ 918,817 $ 13,578,286 $ 131,491,288
Licenses and permits 1,999,017 - 184,664 - - - 2,183,681
Intergovernmental 10,960,401 - 7,287,170 23,279,223 - 11,664,868 53,191,662
Fees and charges for services 8,161,064 - 6,843,476 - - 15,737,957 30,742,497
Fines and forfeitures 2,782,990 - - - - - 2,782,990
Earnings on investments 420,237 93,656 138,442 224,165 109,283 768,356 1,754,139
Miscellaneous revenue 1,935,069 - 115,322 749,845 - 1,423,409 4,223,645
Total Revenues 114,871,015 21,845,820 21,198,858 24,253,233 1,028,100 43,172,876 226,369,902
EXPENDITURES
Current operating
Police services 31,554,774 2,956,790 - - - - 34,511,564
Financial services 3,166,784 20,697 - - - - 3,187,481
Community and operation 16,206,925 2,686,024 - 126,885 - 17,023,545 36,043,379
Planning, development and transportation 5,854,179 8,278,794 20,416,748 1,505,730 - 9,341,088 45,396,539
Executive, legislative, and judicial 4,589,435 49,816 - - - - 4,639,251
Employee and communications 2,342,929 106,380 - - - - 2,449,309
Sustainability services 2,915,438 784,820 - - 495,428 2,900,588 7,096,274
Other 1,404,327 - - 35,961 - 241,424 1,681,712
Intergovernmental
Fire protection 16,931,807 2,116,653 - - - 234,353 19,282,813
Capital outlay 1,716,333 750,112 5,027,286 27,785,512 - 3,076,993 38,356,236
Debt service
Principal 76,265 95,796 184,566 3,058,612 - 3,552,355 6,967,594
Interest and debt service costs 174,628 10,469 35,625 113,218 281,631 1,883,107 2,498,678
Total Expenditures 86,933,824 17,856,351 25,664,225 32,625,918 777,059 38,253,453 202,110,830
Excess (Deficiency) of Revenues
Over (Under) Expenditures 27,937,191 3,989,469 (4,465,367) (8,372,685) 251,041 4,919,423 24,259,072
OTHER FINANCING SOURCES (USES)
Transfers in 6,952,904 - 4,935,765 9,476,318 - 20,415,807 41,780,794
Transfers out (19,954,954) - (642,075) (808,139) (2,700,000) (21,924,842) (46,030,010)
Certificates of Participation
COPS issued - - - - - 34,395,000 34,395,000
Capital leases 150,500 - 546,600 - - - 697,100
Payments to refunded bond escrow agent - - - - - (34,395,000) (34,395,000)
Sale of capital assets - - 13,850 - - 166,885 180,735
Total Other Financing Sources (Uses) (12,851,550) - 4,854,140 8,668,179 (2,700,000) (1,342,150) (3,371,381)
Net Changes in Fund Balances (Deficit) 15,085,641 3,989,469 388,773 295,494 (2,448,959) 3,577,273 20,887,691
Fund Balances (Deficit)-January 1 40,167,124 6,313,379 13,220,576 20,109,186 (6,778,442) 48,757,082 121,788,905
Fund Balances (Deficit)-December 31 $ 55,252,765 $ 10,302,848 $ 13,609,349 $ 20,404,680 $ (9,227,401) $ 52,334,355 $ 142,676,596
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 35
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, 2012
Amounts reported for governmental activities in the statement of activities (pages 30-31) are
different because:
Net change in fund balances - total governmental funds (page 34) $ 20,887,691
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, $38,356,236, exceeded depreciation, $10,680,552, in the current period. 27,675,684
The net effect of various miscellaneous transactions involving capital assets:
Disposal (277,151)
Transfer of assets between governmental and business type activities 6,944
(270,207)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the governmental funds. (280,215)
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 position, so this transaction has no effect on net
position. Also, governmental funds report the effect of 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.
Principal payments 3,908,982
Payment to escrow agent on COP refunding 37,453,612
Debt payment made by DDA on behalf of the City 221,667
Issuance of capital lease (697,100)
Issuance of refunding COPs (34,395,000)
Change in net pension obligation (994,100)
Change in postemployment healthcare benefits (36,191)
Change in compensated absences (530,981)
Amortization of premium, discount, deferred amount of refunding 204,777
Interest expense 98,138
5,233,804
Expenses in Statement of Activities related to City's Equity in Joint Venture
Change in Non-Capital Equity position in Fort Collins/Loveland Airport 45,773
Transfer of internal service fund net position from business type activities 1,189,284
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. 519,658
Change in net position of governmental activities (pages 30-31) $ 55,001,472
The notes to the financial statements are an integral part of this statement.
36 City of Fort Collins Comprehensive Annual Financial Report
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Original Final
Actual Budget Budget Variance
REVENUES
Taxes $ 88,612,237 $ 81,365,000 $ 85,288,800 $ 3,323,437
Licenses and permits 1,999,017 1,509,500 1,509,500 489,517
Intergovernmental 10,960,401 9,669,446 10,353,322 607,079
Fees and charges for services 8,161,064 7,073,293 7,418,073 742,991
Fines and forfeitures 2,782,990 2,736,297 2,802,297 (19,307)
Earnings on investments 420,237 933,598 933,598 (513,361)
Miscellaneous revenue 1,935,069 977,725 1,223,151 711,918
Total Revenues 114,871,015 104,264,859 109,528,741 5,342,274
EXPENDITURES
Current operating
Police services 31,554,774 30,576,380 33,014,109 1,459,335
Financial services 3,166,784 3,175,633 3,229,996 63,212
Community and operation 16,206,925 16,669,721 17,786,796 1,579,871
Planning, development and transportation 5,854,179 5,138,228 6,016,450 162,271
Executive, legislative, and judicial 4,589,435 4,301,247 4,771,756 182,321
Employee and communications 2,342,929 2,562,773 2,773,432 430,503
Sustainability services 2,915,438 2,555,430 3,985,703 1,070,265
Other 1,404,327 1,722,791 2,882,288 1,477,961
Intergovernmental
Fire protection 16,931,807 16,773,798 16,931,807 -
Capital Outlay 1,716,333 293,003 2,214,287 497,954
Debt Service
Principal 76,265 502,232 103,951 27,686
Interest and debt service costs 174,628 21,895 576 (174,052)
Total Expenditures 86,933,824 84,293,131 93,711,151 6,777,327
Excess of Revenues
Over Expenditures 27,937,191 19,971,728 15,817,590 12,119,601
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of long-term debt 150,500 - 150,500 -
Transfers in 6,952,904 1,055,686 8,133,300 (1,180,396)
Transfers out (19,954,954) (19,909,624) (20,002,624) 47,670
Total Other Financing Sources (Uses) (12,851,550) (18,853,938) (11,718,824) (1,132,726)
Net Change in Fund Balances 15,085,641 $ 1,117,790 $ 4,098,766 $ 10,986,875
Fund Balances--January 1 40,167,124
Fund Balances--December 31 $ 55,252,765
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 37
KEEP FORT COLLINS GREAT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Original Final
Actual Budget Budget Variance
REVENUES
Taxes $ 21,752,164 $ 19,959,000 $ 20,642,400 $ 1,109,764
Earnings on investments 93,656 - - 93,656
Total Revenues 21,845,820 19,959,000 20,642,400 1,203,420
EXPENDITURES
Programs
Street Maintenance 6,404,948 6,349,959 6,350,360 (54,588)
Other Street and Transportation 1,722,741 1,955,647 2,655,118 932,377
Police Services 3,069,240 3,179,000 3,303,352 234,112
Fire Protection 2,116,653 2,116,653 2,116,653 -
Parks and Recreation 1,962,437 1,936,145 2,092,204 129,767
Other 1,880,372 2,160,676 2,626,708 746,336
Total Programs 17,156,391 17,698,080 19,144,395 1,988,004
Projects (project level of budgetary control)
Trail Acquisition and Development 321,000 - 321,000 -
Spring Canyon - Veteran's Plaza 25,000 - 25,000 -
Fort Collins Bikes Programs 55,230 - 80,013 24,783
City Bridge Program 467,120 - 2,483,931 2,016,811
Pedestrian Access 101,477 - 260,000 158,523
North College Improvements-Conifer/Willox 25,348 - 326,481 301,133
Total Projects 995,175 - 3,496,425 2,501,250
Total Expenses 18,151,566 17,698,080 22,640,820 4,489,254
Excess (Deficiency) of Revenues Over (Under)
Expenditures Before Reconciling Items 3,694,254 $ 2,260,920 $ (1,998,420) $ 5,692,674
RECONCILIATION TO GAAP BASIS
Prior Years' Project Expenses 295,215
Total Reconciling Items 295,215
Net Change in Fund Balances 3,989,469
Fund Balances--January 1 6,313,379
Fund Balances--December 31 $ 10,302,848
The notes to the financial statements are an integral part of this statement.
38 City of Fort Collins Comprehensive Annual Financial Report
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, 2012
Prior Year Cumulative Original Final
Actual Actual Actual Budget Budget Variance
REVENUES
Taxes $ 6,629,784 $ - $ 6,629,784 $ 5,896,500 $ 6,268,467 $ 361,317
Licenses and permits 184,664 - 184,664 146,515 146,515 38,149
Intergovernmental 7,287,170 - 7,287,170 7,429,706 7,429,706 (142,536)
Fees and charges for services 6,843,476 - 6,843,476 5,211,864 5,611,864 1,231,612
Earnings on investments 138,442 - 138,442 229,057 229,057 (90,615)
Miscellaneous revenue 115,322 - 115,322 42,082 42,082 73,240
Total Revenues 21,198,858 - 21,198,858 18,955,724 19,727,691 1,471,167
EXPENDITURES
Programs (fund level of budgetary control)
Comm Dev & Neighborhood Svcs 387,897 - 387,897 449,655 444,711 56,814
PDT Administration 47,024 - 47,024 - 86,000 38,976
Transportation services administration 177,964 - 177,964 121,888 122,798 (55,166)
Harmony road 4,873,033 - 4,873,033 2,782,313 5,034,618 161,585
Pavement management 7,915,462 - 7,915,462 7,787,345 7,976,096 60,634
Streets 5,183,981 - 5,183,981 5,035,054 5,251,485 67,504
Engineering 1,649,183 - 1,649,183 1,774,360 1,735,043 85,860
Traffic 3,597,920 - 3,597,920 2,693,947 3,743,808 145,888
Parking 1,116,145 - 1,116,145 1,256,222 1,331,929 215,784
Planning 413,628 - 413,628 463,033 548,315 134,687
Total Programs 25,362,237 - 25,362,237 22,363,817 26,274,803 912,566
Projects (level of budgetary control)
FC Bikes 83,693 311,222 394,915 419,161 419,161 24,246
Bike Library 67,951 97,841 165,792 165,792 165,792 -
Traffic Signal System Software 64,199 - 64,199 248,000 248,000 183,801
CDOT SR2S 14,474 73,772 88,246 88,250 88,250 4
Safe Routes to School 71,671 - 71,671 177,476 177,476 105,805
Total Grants 301,988 482,835 784,823 1,098,679 1,098,679 313,856
Total Expenditures 25,664,225 482,835 26,147,060 23,462,496 27,373,482 262,843
Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,465,367) (482,835) (4,948,202) (4,506,772) (7,645,791) 2,697,589
OTHER FINANCING SOURCES (USES)
Transfers in:
General Fund 4,654,765 - 4,654,765 4,734,724 4,781,337 (126,572)
Storm Water 215,000 - 215,000 215,000 215,000 -
Sales and Use Tax- Pvmt Mgmt 66,000 - 66,000 66,000 66,000 -
Transfers out:
Debt Service Fund (490,469) - (490,469) (490,469) (490,469) -
Capital Projects Fund (151,606) - (151,606) - (800,358) 648,752
Proceeds from Lease Purchase 546,600 - 546,600 - 546,600 -
Sale of capital assets 13,850 - 13,850 32,000 32,000 (18,150)
Total Other Financing Sources (Uses) 4,854,140 - 4,854,140 4,557,255 4,350,110 504,030
Net Change in Fund Balances 388,773 $ (482,835) (94,062) $ 50,483 $ (3,295,681) $ 3,201,619
Fund Balances--January 1 13,220,576 13,220,576
Plus Prior Years' Project Expenditures 482,835
Fund Balances--December 31 $ 13,609,349 $ 13,609,349
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 39
URBAN RENEWAL AUTHORITY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Original Final
Actual Budget Budget Variance
REVENUES
Taxes $ 918,817 $ 913,815 $ 913,815 $ 5,002
Earnings on investments 109,283 109,500 109,500 (217)
Total Revenues 1,028,100 1,023,315 1,023,315 4,785
EXPENDITURES
Sustainability Services 495,428 582,248 582,248 86,820
Interest 281,631 281,631 281,631 -
Total Expenditures 777,059 863,879 863,879 86,820
Excess of Revenues
Over Expenditures 251,041 159,436 159,436 91,605
OTHER FINANCING (USES)
Payments on advances (363,665) - - (363,665)
Transfers out:
Capital Projects Fund (2,700,000) - (2,770,000) 70,000
Total Other Financing (Uses) (3,063,665) - (2,770,000) (293,665)
Net Change (2,812,624) $ 159,436 $ (2,610,564) $ (202,060)
RECONCILIATION TO GAAP BASIS
Payments on Advances 363,665
Total Reconciling Items 363,665
Net Change in Fund Balances (2,448,959)
Fund Balances--January 1 (6,778,442)
Fund Balances--December 31 $ (9,227,401)
The notes to the financial statements are an integral part of this statement.
40 City of Fort Collins Comprehensive Annual Financial Report
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
DECEMBER 31, 2012
Light Storm
and Power Water Wastewater Drainage
ASSETS
Current Assets
Cash and cash equivalents $ 5,205,756 $ 7,500,336 $ 3,177,194 $ 1,747,332
Investments 42,273,529 61,881,438 26,237,392 14,403,291
Receivables
Accounts, net 13,224,623 2,630,263 2,936,043 1,963,680
Note receivable 79,603 425,000 - -
Interest 112,030 163,169 69,546 37,091
Prepaid item - - - -
Due from other governments - - - -
Inventories of materials and supplies 4,277,940 - - -
Total Current Assets 65,173,481 72,600,206 32,420,175 18,151,394
Non-Current Assets
Advance to other funds - 2,883,983 - 326,472
Restricted - cash and cash equivalents - 260,042 388,004 347,337
Land, water rights, other 1,878,377 51,328,566 3,217,675 8,698,750
Buildings, improvements and equipment 236,606,431 246,137,217 198,083,804 103,510,576
Accumulated depreciation (133,941,956) (107,553,961) (73,876,440) (28,947,164)
Construction in progress 33,447,438 15,116,483 18,162,401 21,582,137
Note receivable 171,345 100,000 - -
Total Non-Current Assets 138,161,635 208,272,330 145,975,444 105,518,108
Total Assets 203,335,116 280,872,536 178,395,619 123,669,502
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 193,771 144,302 683,518
Total Deferred Outflows of Resources - 193,771 144,302 683,518
LIABILITIES
Current Liabilities
Accounts payable 10,841,776 2,361,806 782,440 942,749
Interest payable 45,594 62,713 117,713 91,413
Wages payable 221,351 154,842 113,748 51,357
Compensated absences 614,908 381,482 324,420 133,753
Bonds payable 1,550,804 2,659,999 3,308,272 3,095,920
Claims payable - - - -
Capital lease obligations - - - -
Unearned revenue - - - -
Total Current Liabilities 13,274,433 5,620,842 4,646,593 4,315,192
Non-Current Liabilities
Postemployment healthcare benefits 222,325 - 187,847 -
Bonds payable 12,150,667 15,112,543 30,403,065 23,083,509
Claims payable - - - -
Capital lease obligations - - - -
Total Non-Current Liabilities 12,372,992 15,112,543 30,590,912 23,083,509
Total Liabilities 25,647,425 20,733,385 35,237,505 27,398,701
DEFERRED INFLOWS OF RESOURCES
Deferred charge on refunding - - - -
Total Deferred Inflows of Resources - - - -
NET POSITION
Net investment in capital assets 124,288,818 187,449,534 112,020,405 79,348,388
Restricted: debt service - 260,042 388,004 347,337
Restricted: fiscal agent - - - -
Unrestricted 53,398,873 72,623,346 30,894,007 17,258,594
Total Net Position $ 177,687,691 $ 260,332,922 $ 143,302,416 $ 96,954,319
Adjustment to reflect the consolidation of internal service fund net position related to enterprise funds:
Allocation of governmental activities related to internal service fund net position:
City of Fort Collins Comprehensive Annual Financial Report 41
Non Major
Enterprise Fund Enterprise Internal
Golf Funds Service Funds
$ 91,487 $ 17,722,105 $ 6,036,312
724,923 145,520,573 23,455,431
18,396 20,773,005 676,852
- 504,603 -
2,034 383,870 62,225
- - 213,360
- - 8,246
- 4,277,940 579,355
836,840 189,182,096 31,031,781
- 3,210,455 -
- 995,383 93,582
2,865,975 67,989,343 30,126
8,412,758 792,750,786 17,383,853
(3,879,034) (348,198,555) (12,128,042)
- 88,308,459 -
- 271,345 -
7,399,699 605,327,216 5,379,519
8,236,539 794,509,312 36,411,300
- 1,021,591 -
- 1,021,591 -
135,477 15,064,248 1,383,949
13,361 330,794 5,188
21,732 563,030 323,088
62,809 1,517,372 901,633
291,065 10,906,060 -
- - 2,297,931
78,239 78,239 557,922
- - 1,745
602,683 28,459,743 5,471,456
- 410,172 -
2,397,712 83,147,496 -
- - 2,963,183
129,264 129,264 1,823,746
2,526,976 83,686,932 4,786,929
3,129,659 112,146,675 10,258,385
17,049 17,049 -
17,049 17,049 -
4,486,370 507,593,515 3,875,465
- 995,383 -
- - 93,582
603,461 174,778,281 22,183,868
$ 5,089,831 683,367,179 $ 26,152,915
3,475,746
(5,035,021)
$ 681,807,904
42 City of Fort Collins Comprehensive Annual Financial Report
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2012
Light Storm
and Power Water Wastewater Drainage
OPERATING REVENUES
Charges for services $ 108,634,479 $ 28,325,535 $ 20,809,026 $ 14,051,297
Total Operating Revenues 108,634,479 28,325,535 20,809,026 14,051,297
OPERATING EXPENSES
Personal services 6,545,285 5,975,279 4,801,381 2,053,894
Contractual services 9,701,076 5,810,268 3,892,897 939,079
Commodities 77,286,971 3,188,042 1,110,486 186,351
Customer service and administrative charges 4,272,291 3,243,872 1,642,200 1,843,573
Other 2,858,065 1,018,025 210,842 41,596
Depreciation 7,739,320 5,374,854 4,627,661 2,200,738
Total Operating Expenses 108,403,008 24,610,340 16,285,467 7,265,231
Operating Income (Loss) 231,471 3,715,195 4,523,559 6,786,066
NONOPERATING REVENUES (EXPENSES)
Earnings on investments 566,783 952,937 468,178 183,526
Intergovernmental 5,564,701 - - 489,577
Other revenue 1,395,604 291,436 103,868 30,255
Gain on sale of capital assets 194,540 42,400 19,026 26,199
Interest expense (259,043) (739,503) (1,328,383) (1,085,299)
Other nonoperating expenses - - - (68,892)
Total Nonoperating Revenues (Expenses) 7,462,585 547,270 (737,311) (424,634)
Income (Loss) Before Contributions and Transfers 7,694,056 4,262,465 3,786,248 6,361,432
Capital contributions 3,414,650 3,448,556 2,119,535 948,125
Transfers in - - - -
Transfers out - - - (220,000)
Change in Net Position 11,108,706 7,711,021 5,905,783 7,089,557
Net Position--January 1, as restated 166,578,985 252,621,901 137,396,633 89,864,762
Net Position--December 31 $ 177,687,691 $ 260,332,922 $ 143,302,416 $ 96,954,319
Adjustment to reflect the consolidation of internal service fund net position related to enterprise funds:
Allocation of governmental activities related to internal service fund net position:
Change in net position of business-type activities (pages 30-31)
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 43
Non Major
Enterprise
Fund Enterprise Internal
Golf Funds Service Funds
$ 3,076,851 $ 174,897,188 $ 45,013,325
3,076,851 174,897,188 45,013,325
1,167,624 20,543,463 14,430,138
796,710 21,140,030 27,767,599
431,703 82,203,553 7,375,411
- 11,001,936 -
- 4,128,528 379,766
272,458 20,215,031 1,491,665
2,668,495 159,232,541 51,444,579
408,356 15,664,647 (6,431,254)
6,968 2,178,392 292,668
- 6,054,278 -
29,157 1,850,320 1,193,267
1,582 283,747 84,074
(75,858) (3,488,086) (38,965)
- (68,892) -
(38,151) 6,809,759 1,531,044
370,205 22,474,406 (4,900,210)
- 9,930,866 -
- - 6,238,206
(43,806) (263,806) (1,725,186)
326,399 32,141,466 (387,190)
4,763,432 26,540,105
$ 5,089,831 $ 26,152,915
(906,848)
(1,189,284)
$ 30,045,334
44 City of Fort Collins Comprehensive Annual Financial Report
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2012
Light and Power Water Wastewater Storm Drainage
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers and users $ 110,065,801 $ 28,167,813 $ 20,375,641 $ 13,990,380
Receipts from interfund services provided - - - -
Cash paid to employees for services (6,500,508) (5,922,158) (4,774,733) (2,065,607)
Cash paid to other suppliers of goods & services (87,653,390) (7,413,034) (4,982,384) (1,476,764)
Payments for interfund services used (4,778,702) (4,088,815) (2,275,766) (2,001,291)
Other receipts 1,334,800 274,336 78,800 519,832
Net cash provided (used) by operating activities 12,468,001 11,018,142 8,421,558 8,966,550
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - - -
Transfers to other funds - - - (220,000)
Advances from other funds - 116,017 - -
Net cash provided (used) by noncapital
financing activities - 116,017 - (220,000)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from capital debt - 350,000 - -
Capital contributions 3,414,650 2,206,042 2,119,535 948,125
Purchases of capital assets (22,245,506) (8,667,972) (9,711,033) (2,997,310)
Principal paid on capital debt (1,455,000) (2,854,200) (3,098,674) (2,965,000)
Interest paid on capital debt (579,864) (747,890) (1,458,710) (1,101,670)
Proceeds from sales of capital assets 209,577 42,400 71,251 26,199
Grant proceeds from federal government 5,564,701 - - -
Net cash (used) by capital
and related financing activities (15,091,442) (9,671,620) (12,077,631) (6,089,656)
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sales and maturities of investments 2,690,236 61,359,122 29,882,893 -
Purchase of investments - (61,576,883) (26,083,923) (1,520,501)
Earnings received on investments 620,139 989,100 490,563 188,958
Net cash provided (used) by
investing activities 3,310,375 771,339 4,289,533 (1,331,543)
Net increase (decrease) in cash and cash equivalents 686,934 2,233,878 633,460 1,325,351
Cash and cash equivalents, January 1 4,518,822 5,526,500 2,931,738 769,318
Cash and cash equivalents, December 31 5,205,756 7,760,378 3,565,198 2,094,669
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) 231,471 3,715,195 4,523,559 6,786,066
Other receipts 1,334,800 274,336 78,800 30,255
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation expense 7,739,320 5,374,854 4,627,661 2,200,738
(Increase) decrease in accounts receivable 504,011 (157,722) (433,385) (60,917)
Decrease in intergovernmental receivables 927,311 - - 489,577
(Increase) decrease in inventories 222,805 - - -
(Decrease) in prepaid item - - - -
Increase (decrease) in accounts payable 1,463,506 1,758,358 (401,725) (467,456)
Increase (decrease) in compensated absences payable 3,750 25,273 6,624 (17,851)
Increase in post-emp healthcare obligation 11,655 - 6,748 -
Increase in wages payable 29,372 27,848 13,276 6,138
(Decrease) in claims payable - - - -
(Decrease) in deferred revenue - - - -
Net cash provided (used) by operating activities $ 12,468,001 $ 11,018,142 $ 8,421,558 $ 8,966,550
City of Fort Collins Comprehensive Annual Financial Report 45
Non Major
Enterprise Fund Total Total Internal
Golf Enterprise Funds Service Funds
$ 2,903,845 $ 175,503,480 $ -
- - 44,857,469
(1,156,892) (20,419,898) (14,327,857)
(1,162,186) (102,687,758) (35,938,268)
156,134 (12,988,440) (232,086)
26,061 2,233,829 1,193,267
766,962 41,641,213 (4,447,475)
- - 6,238,206
(43,806) (263,806) (1,725,186)
- 116,017 -
(43,806) (147,789) 4,513,020
77,382 427,382 1,097,585
- 8,688,352 -
(55,228) (43,677,049) (1,303,880)
(389,662) (10,762,536) (480,260)
(78,718) (3,966,852) (47,373)
1,582 351,009 84,074
- 5,564,701 -
(444,644) (43,374,993) (649,854)
- 93,932,251 609,425
(241,303) (89,422,610) (990,731)
6,967 2,295,727 318,697
(234,336) 6,805,368 (62,609)
44,176 4,923,799 (646,918)
47,311 13,793,689 6,776,812
91,487 18,717,488 6,129,894
408,356 15,664,647 (6,431,254)
26,061 1,744,252 1,193,267
272,458 20,215,031 1,491,665
(16,872) (164,885) (151,205)
- 1,416,888 2,317
- 222,805 (15,799)
- - (34,762)
66,227 2,418,910 (306,938)
5,829 23,625 42,288
- 18,403 -
4,903 81,537 59,993
- - (293,577)
- - (3,470)
$ 766,962 $ 41,641,213 $ (4,447,475)
- (392,279) -
- 1,242,514 -
91,487 17,722,105 6,036,312
- 995,383 93,582
$ 91,487 $ 18,717,488 $ 6,129,894
46 City of Fort Collins Comprehensive Annual Financial Report
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
DECEMBER 31, 2012
General Employee Agency
Retirement Plan Funds
ASSETS
Cash and cash equivalents $ 803,991 $ 1,689,685
Receivables, interest 62,629 36,530
Investments, at fair value
Certificate of deposit 421,430 883,600
U S Government securities 5,413,982 11,419,834
Corporate bonds 3,794,548 1,614,867
Mutual funds 28,992,741 -
Total Investments, at fair value 38,622,701 13,918,301
Total Assets 39,489,321 15,644,516
LIABILITIES
Amounts held for other governments - 15,644,516
Accounts Payable 256 -
Total Liabilities 256 $ 15,644,516
NET POSITION
Held in trust for pension benefits $ 39,489,065
The notes to the financial statements are an integral part of this statement.
City of Fort Collins Comprehensive Annual Financial Report 47
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2012
General Employee
Retirement Plan
ADDITIONS
Contributions
Employer contributions $ 1,241,929
Total Contributions 1,241,929
Investment income
Interest related to plan investments 236,043
Net change in fair value of investments 3,989,900
Total Investment Income 4,225,943
Total Additions 5,467,872
DEDUCTIONS
Benefit payments 2,970,386
Administration expense 23,801
Total Deductions 2,994,187
Net Increase in Plan Net Position 2,473,685
Net Position
Beginning of year 37,015,380
End of year $ 39,489,065
The notes to the financial statements are an integral part of this statement.
48 City of Fort Collins Comprehensive Annual Financial Report
THIS PAGE INTENTIONALLY LEFT BLANK.
City of Fort Collins Comprehensive Annual Financial Report 49
NOTES TO THE BASIC FINANCIAL STATEMENTS
I. Summary of Significant Accounting Policies
A. Reporting Entity ....................................................................................................................... 50
B. Joint Ventures .......................................................................................................................... 50
C. Jointly Governed Organization ................................................................................................ 51
D. Government-wide and Fund Financial Statements .................................................................. 51
E. Measurement Focus and Basis for Accounting ........................................................................ 52
F. Financial Statement Presentation ............................................................................................. 52
G. Assets, Liabilities, Deferred Outflows/Inflows of
Resources and Net Position/Fund Balance .............................................................................. 53
II. Stewardship, Compliance and Accountability
A. Budgetary Information ............................................................................................................. 56
B. Excess of Expenditures Over Appropriations .......................................................................... 58
C. Deficit Fund Equity .................................................................................................................. 58
III. Detailed Notes on all Funds
A. Deposits and Investments ........................................................................................................ 58
B. Notes Receivable...................................................................................................................... 61
C. Capital Assets ........................................................................................................................... 62
D. Inter-fund Transfers ................................................................................................................. 64
E. Long-term Obligations ............................................................................................................. 65
F. Fund Balances .......................................................................................................................... 73
IV. Other Information
A. Risk Management .................................................................................................................... 75
B. Employee Retirement Systems and Pension Plans .................................................................. 76
C. Other Postemployment Benefits .............................................................................................. 80
D. Commitments and Contingencies ............................................................................................ 82
E. Legal Matters............................................................................................................................ 82
F. Related Party Transactions ....................................................................................................... 83
G. Change in Net Position and Fund Balance .............................................................................. 85
H. Subsequent Events ................................................................................................................... 85
50 City of Fort Collins Comprehensive Annual Financial Report
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Fort Collins, Colorado (the City) was incorporated in 1873 and adopted its Home Rule charter in
1913. In 1954, the citizens adopted the Council-Manager form of government. The more significant accounting
policies reflected in the financial statements are summarized as follows:
A. Reporting Entity
These financial statements include those of the City (primary government) and organizations for which the City is
financially accountable (component units). The following component units are included in the reporting entity: The
Fort Collins, Colorado Downtown Development Authority (DDA), City of Fort Collins General Improvement
District No. 1 (GID No. 1), the Fort Collins Capital Leasing Corporation (Corporation), the Urban Renewal
Authority (URA), and the City of Fort Collins General Improvement District No. 15-Skyview (GID No. 15-
Skyview). None of the component units issue their own financial statements.
The DDA was created in 1981 by City Council and the electorate. The purpose of the DDA is to promote the
public health, safety, prosperity, security, and welfare of its inhabitants. The City appoints and removes all
members of the DDA's governing board in addition to issuing debt, adopting budgets, and levying taxes on its
behalf. The financial statements of the Downtown Development Authority are included in the reporting entity by
discrete presentation.
GID No. 1 was created in 1976 for the construction and installation of parking facilities and street and sidewalk
beautification improvements. GID No. 1 is, in substance, the same as the primary government since the City
Council serves as the board of directors. As such, it levies all taxes, approves all budgets, and issues all debt on
behalf of GID No. 1. Accordingly, its transactions and balances are blended with those of the City. GID No. 1 is
presented as a special revenue fund.
The Corporation was created in June 1998 and operates under the provisions of the Nonprofit Corporation Law of
the State of Colorado. The Corporation’s primary purpose is to provide financing assistance by obtaining land,
property and equipment on behalf of the City. The directors are appointed by the City Council and receive no
compensation. Its transactions and balances are blended with those of the City. The Corporation is presented as a
debt service fund.
The Urban Renewal Authority (URA) was established in 2006. The primary purpose of the URA is to remedy
blight by stimulating and leveraging private capital investment, using tax increment financing in private
development projects and public improvement projects. The URA is, in substance, the same as the primary
government since the City Council serves as the board of directors. Its transactions and balances are blended with
those of the City. The URA is presented as a special revenue fund.
GID No. 15-Skyview was organized in 1997 by Larimer County and was inherited by the City as part of the
Southwest Annexation. The mill levy funds are used to maintain the street system for the Skyview Subdivision.
GID No. 15-Skyview is, in substance, the same as the primary government since the City Council serves as the
board of directors. As such, it levies all taxes, approves all budgets, and issues all debt on behalf of GID No. 15-
Skyview. Accordingly, its transactions and balances are blended with those of the City. GID No. 15-Skyview is
presented as a special revenue fund.
B. Joint Ventures
The City has joined with other governmental units to form the following joint ventures:
Fort Collins-Loveland Airport was created for the purpose of operating a municipal airport for the benefit of the
citizens of Loveland and Fort Collins. The City provides a small amount of funding for on-going airport
construction projects. The City and Loveland each retain a 50% ownership interest in the airport. Separately issued
financial statements are available upon request from the Airport Manager.
City of Fort Collins Comprehensive Annual Financial Report 51
North Front Range Transportation and Air Quality Planning Council (NFRTAQPC) is an association of local
governments that was formed in 1987 in response to local needs and federal transportation and air quality planning
requirements. Local government membership consists of elected officials representing Fort Collins, Greeley,
Loveland, Evans, Berthoud, Windsor, Timnath, Garden City, LaSalle, Johnstown, Eaton, Milliken, Severance and
Weld and Larimer Counties. Membership is also extended to the Colorado Transportation Commission and the
Colorado Air Quality Control Commission. The NFRTAQPC Board appoints its own management and approves
its own budget. The City has an agreement with the NFRTAQPC that allows for NFRTAQPC to participate in the
City’s benefit plans and other City services on a reimbursable basis. Separately issued financial statements are
available upon request from the Planning Council.
Poudre Fire Authority (PFA) was created by an intergovernmental agreement between the City of Fort Collins and
the Poudre Valley Fire Protection District. The PFA Board consists of five members--two appointed by City
Council, two appointed by the District's Board of Directors and a fifth member appointed by the other four
members. The PFA Board appoints its own management and approves its own budget. PFA's continuing existence
depends, in part, on funding provided by the City. Separately issued financial statements for PFA are available
from its administrative office.
Platte River Power Authority (PRPA) was created by an intergovernmental agreement between the Cities of Fort
Collins, Estes Park, Loveland, and Longmont to supply their wholesale electric power and energy
requirements. The governing Board of PRPA consists of two members from each municipality. Under Colorado
law, PRPA's Board of Directors has the exclusive authority to establish electric rates. The City has contracted for
its total electric energy supply from PRPA through December 31, 2040. Separately issued financial statements for
PRPA are available from its corporate headquarters.
Aside from the Fort Collins-Loveland Airport, the City does not have an equity interest in any of the joint ventures
in which it participates. None of the joint ventures are accumulating financial resources or are experiencing fiscal
stress that are expected to create a significant financial benefit or burden on the City in the foreseeable future.
C. Jointly Governed Organization
The City and various governmental entities throughout Larimer County have jointly agreed to establish the Larimer
Emergency Telephone Authority (LETA). LETA is a separate legal entity established to provide E-911 telephone
service to the citizens of Larimer County. The City does not retain an on-going financial interest or responsibility
in LETA.
D. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the non-fiduciary activities of the primary government and its component units. For the most
part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which are
normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely primarily on fees and charges for support. Also, the primary government is reported separately from the
DDA, a legally separate component unit for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly associated with a specific function or
segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit
from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
52 City of Fort Collins Comprehensive Annual Financial Report
The City adopted GASB Statement No. 63, “Financial Reporting of Deferred Outflows of Resources, Deferred
Inflows of Resources, and Net Position”, in the current year. The adoption of this Statement changed the
presentation of the financial statements to a Statement of Net Position format.
E. Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary funds and the pension trust funds. The agency funds utilize the
accrual basis of accounting but have no measurement focus. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied and become an enforceable lien on the property. Grants and
similar items are recognized as revenue as soon as all eligibility requirements have been met. An allowance for
doubtful accounts is maintained for the utility receivables.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. As under accrual accounting,
expenditures are generally recorded when a liability is incurred. However, debt service expenditures, as well as
those related to compensated absences and incurred claims and judgments, are recorded only when payment is due.
With regard to self-insurance claims and judgments, an additional expenditure may be recorded based on actuarial
information.
Property taxes, special assessments, sales taxes, franchise taxes, charges for services, amounts due from other
governments and interest associated with the current fiscal period are all considered to be susceptible to accrual.
Other revenue items such as licenses, fines and permits are considered to be measurable and available only when
the cash is received by the government, as a result they are not susceptible to accrual.
F. Financial Statement Presentation
The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. The various
funds are summarized by type within the financial statements.
The City reports the following major governmental funds:
The General fund is the government’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Keep Fort Collins Great fund is used to account for collections of the City’s 0.85% sales and use tax
which is allocated as follows: 33% for street maintenance and repair; 17% for other street and
transportation needs; 17% for police services; 11% for fire protection and other emergency services; 11%
for parks maintenance and recreation services; and 11% for community priorities other than those listed
above, as determined by the City Council. It is shown as a major fund for public interest purposes.
The Transportation Services special revenue fund is used to account for taxes, federal and state grants and
other revenues utilized to operate and maintain the City’s transportation system.
The Capital Projects fund is used to account for financial resources to be used for the acquisition or
construction of major capital facilities.
The URA special revenue fund is used to account for the tax increment financing for the operations and
debt services of the Urban Renewal Authority, a blended component unit.
The City reports the following major proprietary funds:
The Light and Power fund is used to account for the operations of the City’s electric utility.
City of Fort Collins Comprehensive Annual Financial Report 53
The Water fund is used to account for the operation of the City’s water utility.
The Wastewater fund is used to account for the operation of the City’s wastewater utility.
The Storm Drainage fund is used to account for the operations of the City’s storm water utility.
Additionally, the City reports the following fund types:
Internal Service funds are used to account for the City’s fleet maintenance services, communication, self-
insurance of employee health care and other employee benefits, and a risk management insurance program.
There is also an internal service fund to account for the customer and administrative services provided
exclusively to the City’s utility enterprise funds.
Pension Trust fund is used to account for the City’s General Employees’ Retirement Plan, a defined benefit
pension plan to provide retirement benefits for its employees/retirees, for employees hired before January
1, 1999.
Agency funds are used to account for cash and investments held by the City on behalf of Poudre Fire
Authority and Poudre River Public Library District.
As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial
statements. Exceptions to this rule are the charges between the City’s utility functions and various other functions.
Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The water and storm drainage funds also recognize as operating
revenue the portion of connection fees intended to recover the cost of connecting new customers to the system.
Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets.
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
Cash and Investments
The City has stated certain investments at fair value in accordance with GASB No. 31. Fair value is determined
utilizing the third party custodian’s statements, Wall Street Journal, Bloomberg, and other recognized pricing
services.
Whenever possible, cash is pooled from the various City funds to enhance investment capabilities and maximize
investment income. Investments are made taking into consideration cash flow needs, market conditions, and
contingency plans. The City's investment policies prescribe eligible investments, investment diversification, and
maturity and liquidity guidance, which are utilized in managing the investment portfolio.
For purposes of the combined statement of cash flows, the City considers highly liquid investments with a maturity
of three months or less when purchased to be cash equivalents.
Receivables
Accounts receivable are expressed net of allowances for doubtful accounts. Allowances for doubtful accounts are
based on historical collection trends for the related receivables. Light and Power Fund maintains an allowance of
$250,000, Water Fund maintains an allowance of $25,000, Wastewater Fund has an allowance of $20,000 and
Storm Drainage Fund has an allowance of $10,000. Light and Power Fund and Water Fund have another allowance
for doubtful accounts for miscellaneous accounts receivable. The balances maintained are $25,000 for the Light
and Power Fund and $9,000 for the Water Fund.
54 City of Fort Collins Comprehensive Annual Financial Report
Long-term portions of receivables in the governmental fund financial statements are reported and then offset by
nonspendable, restricted and committed fund balance reserve accounts in order to indicate that they are not
available or spendable resources.
Inventories
Inventories are stated at cost using the first-in, first-out method. The costs of inventory items are recognized as
expenditures in governmental funds when purchased and as expenses in proprietary funds when used. Where
appropriate, inventory has been adjusted downward to market value to reflect what is considered a permanent
market decline.
Inventory of Real Property Held for Resale
Inventory of real property held for resale generally reflects the cost of raw land held by the City’s Land Bank
Program in the General Fund, for development of affordable housing. These assets are carried at the lower of cost
or market. Appraisals are completed periodically. As of December 31, 2012, all assets are valued at cost.
Capital Assets
Capital assets, which are acquired or constructed, are reported at historical cost or estimated historical cost in the
applicable governmental or business-type activities’ columns in the government-wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful
life of five years or greater. Donated capital assets are recorded at estimated fair market value at the date of
donation. Included in capital assets of the business type activities is the interest capitalized during construction.
Approximately $392,279 was capitalized in fiscal year 2012.
Capital assets other than land, water rights, and some intangible property are depreciated. Depreciation is computed
using the straight-line method with estimated useful lives as follows:
Buildings ....................................................................................................................................... 10-50 years
Improvements other than buildings ................................................................................................ 5-50 years
Machinery and equipment .............................................................................................................. 5-20 years
GASB Statement No. 34 provides for an alternative approach to depreciation for measuring the value of
infrastructure assets and the related costs incurred to maintain their service life at a locally established minimum
standard. In order to adopt this alternative method, the City has developed an asset management system, which will
determine if the minimum standards are being maintained. This measurement would occur every three years at a
minimum. The City has elected to use this alternative method for reporting its street infrastructure capital assets.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The government only has one item that qualifies for reporting in this
category. It is the deferred charge on refunding reported in the government-wide and proprietary funds statement
of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt
and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
In addition to liabilities, the statement of financial position will sometime report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The government has two types of items, which arise only under a modified accrual basis
of accounting that qualifies for reporting in this category. Unavailable revenue is reported only in the governmental
City of Fort Collins Comprehensive Annual Financial Report 55
funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and
grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available. The other item is the deferred charge on refunding reported in the government-wide and proprietary
funds statement of net position. A deferred charge on refunding results from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
Compensated Absences
The City allows employees to accumulate unused vacation pay and to defer overtime pay by accumulating
compensatory leave up to maximum limits. Unused sick pay is not recognized as a liability because it does not
meet the criteria for accrual. The liability associated with these benefits is reported in the government-wide
financial statements. Proprietary fund types accrue such benefits in the period in which they are earned. A liability
for the amount is reported in governmental funds only if they have matured, for example as a result of employee
resignations and retirements.
Long-Term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the
life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts as well as bond
issuance costs during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
Claims and Judgments Payable
Claims and judgments payable are recognized when it is probable that a liability has been incurred and the amount
of the loss can be reasonably estimated. Such claims, including an estimate for claims incurred but not reported at
year end, are reflected as claims payable in the financial statements.
Fund Equity/Net Position
In the fund financial statements, fund equity of the City’s governmental funds are classified as nonspendable,
restricted, committed, assigned, or unassigned.
Nonspendable fund balances indicate amounts that cannot be spent either a) due to form; for example, inventories
and prepaid amounts or b) due to legal or contractual requirements to be maintained intact. It also includes the
long-term amount of advances, loans and notes receivables as well as property held for resale unless the proceeds
from the collection of these items would be considered restricted, committed, or assigned in which case they are
included in those categories.
Restricted fund balances indicate amounts constrained for a specific purpose by external parties, constitutional
provision or enabling legislation.
Committed fund balances indicate amounts constrained for a specific purpose by a government using its highest
level of decision-making authority. It would require an ordinance by the City Council to remove or change the
constraints placed on the resources. This action must occur prior to year-end; however, the amount can be
determined in the subsequent period.
56 City of Fort Collins Comprehensive Annual Financial Report
Assigned fund balances indicate amounts of any remaining positive amounts not classified in the above categories
for governmental funds, other than the general fund. For the general fund, amounts constrained for the intent to be
used for a specific purpose has been delegated to the City Manager, Chief Financial Officer, and
Controller/Assistant Financial Officer as outlined in the fund balance policy.
Unassigned fund balances indicate amounts in the general fund that are not classified as non-spendable, restricted,
committed, or assigned. The general fund is the only fund that would report a positive amount in unassigned fund
balance. When both unassigned and committed or assigned resources are available for use, it is the City’s policy to
use committed or assigned resources first, then unassigned resources as needed.
In the government-wide and proprietary fund financial statements, net positions are restricted for amounts that are
legally restricted by outside parties for specific purposes or through enabling legislation that is a legally enforceable
restriction on the use of revenues. When both restricted net position and unrestricted net position are available for
use, it is the City’s policy to use restricted-net position first and then unrestricted net position. Net position
invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowings used for the acquisition, construction or improvements of those assets.
The government-wide statement of net position reports $52,465,901 of restricted net position, of which
$34,882,741 is restricted by enabling legislation.
Inter-fund Transactions
Inter-fund transactions are treated and classified as revenues, expenditures, or expenses (the same as if these same
transactions involved external organizations). These include payments in lieu of taxes and billings from one fund
to another for purchased goods or services. In the government-wide statement of activities, transactions, which
constitute reimbursements, are eliminated in the reimbursed fund and accounted for as expenditures or expenses in
the fund to which the transaction is applicable.
Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Specifically, the City has made certain estimates and assumptions relating to its
collections of receivables, the valuation of property held for resale, and the ultimate outcome of claims and
judgments. Accordingly, actual results could differ from those estimates.
Discretely Presented Component Units
The significant accounting policies for the City's discretely presented component unit are substantially the same as
the primary government. Additional disclosures follow.
The discretely presented component unit data presented in the government-wide statements includes total data for
all fund types of the Downtown Development Authority (DDA), including its General Fund, Debt Service Fund and
its non-current assets and liabilities.
The Board of Directors of the DDA approves their respective budget by resolution. The budget is then submitted to
City Council for approval. Budgetary matters with respect to basis of accounting and legal level of budgetary
control are generally the same for the DDA as those of the City.
NOTE II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
Budgetary Accounting and Control
Appropriated budgets are established for all funds of the City except agency funds, which do not measure results of
operations.
City of Fort Collins Comprehensive Annual Financial Report 57
General, Special Revenue, Debt Service and Trust Funds
Budgets for general, special revenue, debt service and trust funds are adopted on a basis which is consistent with
generally accepted accounting principles (GAAP) except that appropriations for certain special revenue funds do
not lapse on an annual basis as further explained below.
Capital Project Funds
Budgets for the Capital Project Funds are not consistent with GAAP because appropriations do not lapse at year
end.
Proprietary Funds
Proprietary funds are budgeted on a basis that includes capital items such as amounts for capital outlay and
principal reduction of debt. Such budgets exclude depreciation. Proprietary Funds recognize gain on inter-fund
sales of capital assets for budgetary purposes only. Capital project budgets for certain enterprise funds are non-
lapsing.
Legal Level of Control
The legal level of budgetary control is at the individual fund level, except for capital projects and federal and state
grants for which the legal level of control is at the project or grant level. For budgetary purposes, operating transfers
are considered expenditures.
Lapsing Appropriations
All appropriations unexpended or unencumbered lapse at the end of the year to the applicable fund, except capital
project and federal and state grant appropriations which lapse when the project or grant activity is
completed. Appropriations which are encumbered at year end are carried over to the ensuing year at which time
they are matched with their corresponding expenditures.
Budgets for the Capital Projects Fund, special revenue funds with expenditures of a capital or project nature and
special revenue funds where the primary source of revenue is project-length federal or state grants are non-lapsing.
Included are the Capital Projects Fund, Neighborhood Parkland Fund, Conservation Trust Fund, Community
Development Block Grant Fund, Home Program Fund, Transit Services Fund, the grant portion of Transportation
Services and the capital project portion of the Keep Fort Collins Great Fund. Budgets are non-lapsing for capital
projects in all the enterprise funds and for one of the internal service funds - Utilities Customer Service and
Administration Fund.
Property Taxes
Property taxes levied in a particular year are collected in the subsequent year. The property tax calendar is as
follows:
Tax Year
Tax levy certified to County Commissioners ............................................................................ December 15
County Commissioners certify levy to County Assessor .......................................................... December 22
Ensuing Collection Year
Taxes attach as an enforceable lien on property .............................................................................. January 1
First installment due date (one-half of taxes due) ........................................................................ February 28
Taxes due in full (unless installments elected by taxpayer) .............................................................. April 30
Second installment due date (second half due) ................................................................................... June 17
58 City of Fort Collins Comprehensive Annual Financial Report
Taxes are collected by the Larimer County Treasurer on behalf of the City and are remitted by the 10th day of the
month following collection. A 2% collection fee is retained by the County as compensation for collecting the taxes.
Economic Dependency
Anheuser Busch contributed 4% of total property taxes collected in 2012. This company is also a major customer
of the City’s Light and Power, Water and Wastewater major enterprise funds.
B. Excess of Expenditures Over Appropriations
For the year ended December 31, 2012, expenditures exceeded appropriations in the Capital Expansion fund, Sales
and Use Tax fund, and the General Improvement District No. 15 - Skyview fund. These over-expenditures will be
covered by fund balance.
C. Deficit Fund Equity
The Urban Renewal Authority fund had a deficit fund balance of $9,227,401 as of December 31, 2012. The fund
will continue to have a deficit fund balance for the next few years as Tax Increment Funding (TIF) monies are
collected through increased property tax collections. The Community Development Block Grant fund also had a
deficit fund balance of $60,703 as of December 31, 2012 due to the recognition of an allowance against certain
notes receivable in this fund.
NOTE III. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
Deposits
Colorado State Statutes govern the City’s deposits of cash. The statutes specify eligible depositories for public cash
deposits, which must be Colorado institutions and must maintain federal insurance (FDIC) on deposits held.
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in
eligible public depositories determined by state regulators. Amounts on deposit in excess of federal insurance
levels must be collateralized in accordance with the PDPA. PDPA allows the institution to create a single collateral
pool for all public funds to be maintained by another institution or held in trust for all the uninsured public deposits
as a group. The market value of the collateral must be at least 102% of the aggregate uninsured deposits. All
deposits in 2012 were in eligible public depositories, as defined by the Public Deposit Protection Act of 1989.
Primary Government
The carrying amount of the City's deposit accounts as of December 31, 2012, was $41,900,243. The bank balance
was $40,175,950.
Component Unit
The Downtown Development Authority’s undivided share of the City’s deposits as of December 31, 2012 was a
carrying amount of $734,849. The bank balance was $806,135.
Custodial Credit Risk – Deposits
For deposits, custodial credit risk is the risk that, in the event of a bank failure, the City’s deposits might not be
returned. Due to the federal deposit insurance and the collateral no deposits for the City or the component unit
were exposed to custodial credit risk.
City of Fort Collins Comprehensive Annual Financial Report 59
Investments
Investment policies are governed by the City's own investment policies and procedures. Investments of the City
and its discretely presented component unit may include:
• Legal investments for municipalities under state statutes.
• Interest-bearing accounts or certificates of deposit at banks or savings and loans in Colorado which are
eligible public depositories (including CDARS).
• Obligations of the United States Government, its agencies or instrumentalities.
• Debt of U.S. corporations.
• Obligations issued by or on behalf of the City.
• State or local government obligations having an investment grade rating.
• Prime rated banker's acceptances.
• Prime rated commercial paper.
• Guaranteed investment contracts.
• Repurchase and reverse repurchase agreements of any marketable security described above which afford
the City a perfected security interest in such security.
• Local government investment pools authorized under the laws of the State of Colorado.
• Shares in any money market fund or account, unit investment trust or open or close-end investment
company, all of the net assets of which are invested in securities described above.
• Mutual funds that include eligible investments found above.
In addition to the above, investments of the General Employees' Retirement Plan may include:
• Equity Investments.
• Domestic mutual funds.
• International mutual funds.
• Bond mutual funds.
In accordance with GASB Statement No. 40, the City’s and its discretely presented component unit’s investments
are subject to interest rate and credit risk as described below:
Interest Rate Risk
The City’s investment policy limits its exposure to fair value losses arising from rising interest rates by:
• Whenever possible, holding investments to their stated maturity dates.
• Investing a portion of the operating funds in shorter-term securities, money market mutual funds, or local
government investment pools.
Based on the current rate environment, the City assumes that all callable securities may be called on the first call
date.
The City invests in various mortgage-backed securities and bonds in order to maximize yields. Mortgage-backed
securities are based on cash flows from interest payments on underlying mortgages. Therefore, they are sensitive to
prepayments by mortgagees, which may result from a decline in interest rates. If interest rates decline and
homeowners refinance mortgages, thereby prepaying the mortgages underlying these securities, the cash flows from
interest payments are reduced and the value of these securities declines. Likewise, if homeowners pay on
mortgages longer than anticipated, the cash flows are greater and the return on the initial investment would be
higher than anticipated.
60 City of Fort Collins Comprehensive Annual Financial Report
Concentration of Credit Risk
The City places maximum limits on the amount the City may invest in any one issuer. Limits vary by investment
type. More than 5% of the City’s investments are in Federal National Mortgage Association (FNMA), Federal
Home Loan Mortgage Corp (FHLMC), Federal Farm Credit Bank (FFCB) and in Federal Home Loan Bank
(FHLB) agency securities. These investments are 40.18%, 18.34%, 10.26% and 9.86% respectively, of the City’s
total investment. All of these investments were rated AAA by Moody’s and AA+ by Standard and Poor’s.
Custodial Credit Risk for Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will
not be able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The City’s investment policy restricts holding of securities by counterparties.
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) at the time of purchase. As of December 31, 2012, the City's
investment in corporate bonds was rated AA- or better by Standard & Poor's and A1 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, 2012, the local government investment pools (ColoTrust & CSAFE) in which the City had
invested, were rated AAAm by Standard & Poor’s.
As of December 31, 2012, the City had the following investments and maturities:
Primary Government (including Fiduciary Funds)
Credit Risk Rating Fair Up to 121 days
Investment Type S&P/Moody's Value 120 days to 5 years
U.S. Agencies (GNMA) AA+/AAA $ 30,031 $ - $ 30,031
Instrumentality
Federal Farm Credit Bank (FFCB) AA+/AAA 33,720,205 - 33,720,205
Federal Home Loan Bank (FHLB) AA+/AAA 26,698,458 - 26,698,458
Federal Home Loan Mortgage Corporation (FHLMC) AA+/AAA 60,253,500 - 60,253,500
Federal National Mortgage Association (FNMA) AA+/AAA 132,002,760 - 132,002,760
Corporate bonds AA+/Aa3 13,042,730 3,011,430 10,031,300
Corporate bonds AA+/A1 18,315,110 5,001,400 13,313,710
Corporate bonds AA-/Aa3 7,999,335 - 7,999,335
Certificates of Deposit 19,614,865 - 19,614,865
Total Investments Controlled by the City $ 311,676,994 $ 8,012,830 $ 303,664,164
Percent of Total 3% 97%
The City has $28,992,741 invested in Mutuals Funds, but those investments are held by ICMA for employee's retirement accounts.
Component Unit
Credit Risk Rating Fair Up to 121 days
Investment Type S&P/Moody's Value 120 days to 5 years
Instrumentality
Federal Home Loan Bank (FHLB) AA+/AAA $ 5,690,957 $ - $ 5,690,957
Certificates of Deposit 1,635,135 1,250,000 385,135
Total Investments Controlled by the City $ 7,326,092 $ 1,250,000 $ 6,076,092
Percent of Total 17% 83%
Investment Maturities
Investment Maturities
City of Fort Collins Comprehensive Annual Financial Report 61
Restrictions on Cash and Investments
Cash and investments of $260,042, $388,004 and $347,337, respectively, in the Water, Wastewater and Storm
Drainage funds are contractually restricted for debt service through bond ordinances. Investments of $1,250,000 in
the DDA are restricted for debt service. Restricted assets for Escrows of $16,474 in the General fund, $79,573 in
Transportation Services fund and $93,578 and $4, respectively, in the Equipment and Data and Communications
funds are restricted for unspent lease proceeds.
B. Notes Receivable
In March 1996, the City entered into an agreement with a developer for the construction of low income apartment
units. Under the agreement, the City loaned $913,000 to the developer from the HOME Program special revenue
fund and received a deed of trust against the property. The loan is to be repaid from 50% of the net available cash
flow generated by the project as calculated annually. The loan bears interest at 9% per annum. There is no set
payment schedule or due date on the loan. Based upon a review of project income statements, the project did not
have a net available cash flow. In 2012, the City did receive an interest payment of $55,675. The outstanding
balance as of December 31, 2012 is $913,000. The allowance recorded against this receivable balance is $913,000.
In May 2000, the City entered into an agreement with a developer for the construction of low income senior
apartment units. Under the agreement, the City loaned $200,000 to the developer from the Community
Development Block Grant special revenue fund and received a deed of trust against the property. The loan is to be
repaid from the net available cash flow generated by the project as calculated annually. The loan bears interest at
7% per annum. There is no set payment schedule on the loan. The loan has a term of 20 years. The outstanding
balance as of December 31, 2012 is $200,000. The allowance recorded against this receivable balance is $200,000.
In December 2001, the City entered into an agreement with a developer for the construction of low income senior
apartment units. Under the agreement, the City loaned $250,000 to the developer. 50% of the loan proceeds are
from the HOME Program special revenue fund and 50% of the loan proceeds are from the General Fund. The City
received a deed of trust against the property. The loan is to be repaid from the net available cash flow generated by
the project as calculated annually. The loan bears interest at 5.5% per annum. There is no set payment schedule on
the loan. The loan has a term of 20 years. In 2012, the City did receive an interest payment of $13,750. The
outstanding balance as of December 31, 2012 is $250,000.
In May 2006, the City (Light & Power Fund) entered an agreement with Platte River Power Authority for the
purchase of two V42 Vestes. Under the agreement, the City loaned $747,137. Platte River Power Authority will
make annual payments of $92,150 over a ten-year period. The loan bears a fixed interest rate at 5%. The
outstanding balance as of December 31, 2012 is $250,948.
In May 2009, the Urban Renewal Authority (URA) loaned Rocky Mountain Innovation Initiative (RMII)
$1,100,000 for the construction of their new facility. In January 2010, the URA loaned RMII an additional
$4,203,939 for the remaining cost of construction. The loan has a 20 year term and bears a fixed interest rate of
2.5%. For years 0 through 4, there will be no payments but interest will accrue. For year 5, there will be a lump
sum payment consisting of the interest accrued during the no payment term and year 5. For years 6 and 7, there
will be an annual payment of interest only. For years 8 through the maturity date, there will be annual payments of
principal and interest. The outstanding balance as of December 31, 2012 is $5,303,939.
In September 2011, the City (Water Fund) entered an agreement with the Museum Non-Profit Corporation (NPC)
to assist in the continuation of constructing the Fort Collins Museum/Discovery Science Center facility. Under the
agreement, the City loaned $875,000. The NPC had made a commitment of $4,561,916 to the building with
$875,000 of that amount in the form of pledges being paid between 2011 and 2014. The loan has a 3.25 year term
and bears a fixed interest rate of 3.5%. The outstanding balance as of December 31, 2012 is $525,000.
Accrued interest on the above loans has not been recorded since it is uncertain as to the frequency of when the
projects will be able to make payments against the notes.
62 City of Fort Collins Comprehensive Annual Financial Report
C. Capital Assets
A summary of changes in capital asset activity for the year ended December 31, 2012 follows:
Balance, Balance,
Beginning End
of Year Additions Transfers Deletions of Year
Primary Government:
Governmental activities
Capital assets, not being depreciated:
Land, rights of way, water rights, other $ 202,338,815 $ 837,562 $ - $ (154,000) $ 203,022,377
Street system infrastructure 259,055,110 6,430,097 - - 265,485,207
Construction in progress 45,070,562 25,526,756 (16,131,585) - 54,465,733
Total capital assets, not being depreciated 506,464,487 32,794,415 (16,131,585) (154,000) 522,973,317
Capital assets, being depreciated:
Infrastructure 17,624,191 1,287,508 - - 18,911,699
Buildings and improvements 128,019,793 163,458 135,783 - 128,319,034
Improvements other than buildings 76,474,496 905,188 15,689,450 - 93,069,134
Machinery and equipment 66,968,458 4,509,544 434,548 (1,589,347) 70,323,203
Total capital assets being depreciated 289,086,938 6,865,698 16,259,781 (1,589,347) 310,623,070
Less accumulated depreciation for:
Infrastructure (9,522,854) (776,880) - - (10,299,734)
Buildings and improvements (32,858,008) (2,579,473) - - (35,437,481)
Improvements other than buildings (30,288,337) (3,171,117) - - (33,459,454)
Machinery and equipment (43,530,992) (5,239,779) (121,252) 1,466,196 (47,425,827)
Total accumulated depreciaition (116,200,191) (11,767,249) (121,252) 1,466,196 (126,622,496)
Total capital assets being depreciated, net 172,886,747 (4,901,551) 16,138,529 (123,151) 184,000,574
Governmental activities
capital assets, net $ 679,351,234 $ 27,892,864 $ 6,944 $ (277,151) $ 706,973,891
Business-type activities
Capital assets, not being depreciated:
Land, rights of way, water rights, other $ 65,510,356 $ 2,478,987 $ - $ - $ 67,989,343
Construction in progress 60,407,943 35,358,940 (7,458,424) - 88,308,459
Total capital assets, not being depreciated 125,918,299 37,837,927 (7,458,424) - 156,297,802
Capital assets, being depreciated:
Buildings and improvements 228,057,781 - - - 228,057,781
Improvements other than buildings 495,816,198 5,877,225 6,369,756 (90,436) 507,972,743
Machinery and equipment 58,616,463 1,596,689 960,472 (1,093,235) 60,080,389
Total capital assets being depreciated 782,490,442 7,473,914 7,330,228 (1,183,672) 796,110,912
Less accumulated depreciation for:
Buildings and improvements (83,625,500) (4,666,919) - - (88,292,419)
Improvements other than buildings (202,926,919) (13,473,363) - 90,436 (216,309,846)
Machinery and equipment (44,940,248) (2,479,717) 121,252 1,032,917 (46,265,796)
Total accumulated depreciation (331,492,667) (20,619,999) 121,252 1,123,354 (350,868,060)
Total capital assets being depreciated, net 450,997,775 (13,146,085) 7,451,480 (60,318) 445,242,852
Business-type activities
capital assets, net $ 576,916,074 $ 24,691,842 $ (6,944) $ (60,318) $ 601,540,654
City of Fort Collins Comprehensive Annual Financial Report 63
Balance Balance
Beginning Additions Deletions End
of Year of Year
(amounts expressed in thousands)
Component Unit:
Capital Assets; not being depreciated:
Land $ 2,529 $ - $ - $ 2,529
Capital assets being depreciated:
Buildings and improvements 5,895 - (1,400) 4,495
Improvements other than buildings 17 - - 17
Total capital assets being depreciated 5,912 - (1,400) 4,512
Less accumulated depreciation for:
Buildings and improvements (1,647) (120) 126 (1,641)
Improvements other than buildings (17) - - (17)
Total accumulated depreciation (1,664) (120) 126 (1,658)
Total capital assets being depreciated, net 4,248 (120) (1,274) 2,854
Component unit capital assets, net $ 6,777 $ (120) $ (1,274) $ 5,383
Depreciation expense was charged to functions / programs of the primary government as follows:
Governmental Business-Type
Activities Activities
General government $ 706,213 $ -
Public safety - police & judicial 1,508,908 -
Cultural, parks, recreation & environmental services 4,589,675 -
Planning and development 10,739 -
Transportation services 3,865,017 -
Capital assets held by the City's internal service
funds used for governmental activities 1,086,697 -
Light & Power - 7,739,320
Water - 5,374,854
Wastewater - 4,627,661
Storm Drainage - 2,200,738
Non-major Enterprise funds - Golf - 272,458
Capital assets held by the City's internal service
fund used for business-type activities - 404,968
Total depreciation expense 11,767,249 20,619,999
Less capital assets held by the City's internal
service funds 1,086,697 404,968
Depreciation expense excluding internal
service funds $ 10,680,552 $ 20,215,031
64 City of Fort Collins Comprehensive Annual Financial Report
Transfers are primarily used to 1) move revenues from the fund with collection authorization (e.g. Sales and Use
Tax Fund) to the General Fund for overall operating expenditures and the Transportation Services, Capital Projects
and Natural Areas Fund for dedicated voter approved programs and projects, and 2) move unrestricted General
Fund revenues to finance various programs that the government must account for in other funds in accordance with
budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs.
URA Advance: In May 2009, the City loaned the Urban Renewal Authority (URA) $5,303,939 to help fund the
development and construction of the Rocky Mountain Innovation Initiative (RMII) facility for the business
incubation program. This loan has a 20 year term and bears a fixed interest rate of 2.5%. For years 0 through 4,
there will be no payments but interest will accrue. For year 5, there will be a lump sum, annual payment consisting
of the interest accrued during the no payment term and year 5. For years 6 and 7, there will be an annual payment,
of interest only. For years 8 through the maturity date, there will be annual payments of principal and interest. The
amount outstanding as of December 31, 2012 is $5,303,939.
In May 2009, the City loaned the Urban Renewal Authority (URA) $5,000,000 for the North College Marketplace-
Phase 1 project. The interest rate is 2.85% based on a 10 year T-Note and there is no set repayment plan. URA
plans to repay the loan within 10-13 years. The amount outstanding as of December 31, 2012 is $4,728,540.
In December 2010, the City loaned the Urban Renewal Authority (URA) $172,758 for the JAX, Inc Building
Expansion project. This loan bears a fixed interest rate of 2.50%. For years 0 through 4 there will be annual
payments of principal and interest. For the anniversary of the 5th year, there will be a lump sum payment of all
remaining principal and interest. The amount outstanding as of December 31, 2012 is $106,203.
In June 2011, the City loaned the Urban Renewal Authority (URA) $326,472 for the Northeast College Corridor
Outfall (NECCO) project. The interest rate is 3.01% based on a 10 year Treasury bill rate. It will be an interest
only loan for a term of 10 years. There will be a lump sum payment of all remaining interest and principal in June
2021. The amount outstanding as of December 31, 2012 is $326,472.
In July 2011, the City loaned the Urban Renewal Authority (URA) $192,891 for the Kaufman and Robinson
project. The interest rate is 2.46% based on the Treasury bill rate. This is a five year term loan, with the first four
years interest only payments and the remaining balance paid in year five. The amount outstanding as of December
31, 2012 is $192,891.
D. Interfund Transfers and Advances:
Trans-
portation Capital Nonmajor Internal
General Services Projects Governmental Service Total
Transfer out:
Governmental Funds
General $ - $ 4,654,765 $ 93,000 $ 10,833,780 $ 4,373,409 $ 19,954,954
Transportation Services - - 151,606 490,469 - 642,075
Capital Projects - - - 808,139 - 808,139
URA - - 2,700,000 - - 2,700,000
Nonmajor Governmental 6,933,864 66,000 6,531,712 8,283,419 109,845 21,924,840
Proprietary Funds
Storm Drainage 5,000 215,000 - - - 220,000
Golf - - - - 43,806 43,806
Internal Service 14,040 - - - 1,711,146 1,725,186
Total transfers in $ 6,952,904 $ 4,935,765 $ 9,476,318 $ 20,415,807 $ 6,238,206 $ 48,019,000
Transfers In:
City of Fort Collins Comprehensive Annual Financial Report 65
In July 2011, the City loaned the Urban Renewal Authority (URA) $3,000,000 for the North College Marketplace-
Phase 2 project. The interest rate is 4.09% based on the Treasury bill rate. This is an 18.5 year term loan with it
maturing in December 2029. The amount outstanding as of December 31, 2012 is $2,883,983.
In July 2012, the City loaned the Urban Renewal Authority (URA) $2,700,000 for the North College Marketplace-
Phase 2 (Vine to Conifer) project. The interest rate is 3.928% based on the Treasury bill rate. This is a 17.5 year
term loan with it maturing in December 2029. The amount outstanding as of December 31, 2012 is $2,700,000.
E. Long-term Obligations
The City utilizes various types of debt and other long-term obligations in conducting its business. The following
describes the various bonds and other types of financing used by the City and its component unit.
Certificates of Participation and Assignment of Lease Payments: Through the Fort Collins Leasing Corporation,
the City issues certificates of participation (COPs) and assignments of lease payments (ALPs) for the acquisition
and construction of major capital facilities and improvements. The debt is secured by the constructed facilities and
improvements. Debt service payments are made from the rents collected by the Leasing Corporation based upon
lease agreements between the City and the Leasing Corporation. As of December 31, 2012, the City had
$42,346,222 and $2,688,777 of COPs/ALPs outstanding for governmental and business-type activities,
respectively.
Capital Leases: The City also enters into lease agreements as a lessee for financing the acquisition of land, various
machinery and equipment for both governmental and business-type activities. The capital assets acquired from the
lease agreements are included with capital assets and the amortization of leased equipment is included with
depreciation in the financial statements. These lease agreements qualify as capital leases for accounting purposes
and therefore, have been reflected at the present value of their future minimum lease payments as of the inception
date. The City had $3,718,972 and $207,503 of capital leases outstanding as of December 31, 2012, for
governmental and business-type activities, respectively.
Cost of all capital assets holding at December 31, 2012 that have been acquired under capital leases:
DDA Tax Increment Revenue Bonds: The tax increment bonds are serviced by the component unit, Downtown
Development Authority, and are secured by tax increment property taxes. The Taxable 2010 tax increment revenue
bonds issued will mature in 2018 and the Tax Exempt tax increment revenue bonds issued will mature in 2020. As
of December 31, 2012, the Downtown Development Authority had $7,315,000 and $4,485,000, respectively, of tax
increment revenue bonds outstanding.
The DDA pays a portion of the City’s 2007 Certificates of Participation (COPS). In 2012, that payment was
$221,667.
Cost of assets holding at year end that have been acquired under capital leases.
Governmental
Activities
Business Type
Activities
Balance, End
of Year
Balance, End
of Year
Buildings and Improvemts $ 351,930 $ -
Improve o/t buildings - 114,030
Machinery and equipment 9,189,780 1,343,288
Accumulated depreciation (7,009,046) (997,354)
Net Book Value $ 2,532,664 $ 459,964
66 City of Fort Collins Comprehensive Annual Financial Report
PLEDGED REVENUES
Date Amount of Term of
Issued Description Revenue Pledged Revenue Pledged Purpose of Debt Commitment
1997 Water Revenue Bond Water Revenues 3,468,699 Water Capital Projects through 2017
1999 Water Revenue Bonds Water Revenues 2,389,415 Water Capital Projects through 2019
2003 Subordinate Water Revenue Bonds Water Revenues 2,456,770 Water Capital Projects through 2030
2008 Water Revenue Refunding Bonds Water Revenues 10,792,602 Water Capital Projects through 2018
2009 Water Revenue Refunding Bonds Water Revenues 1,603,300 Water Capital Projects through 2013
2001 Storm Drainage Revenue Bonds Storm Drainage Revenues 6,855,545 Storm Drainage Improvements through 2021
2007 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 13,062,152 Storm Drainage Improvements through 2019
2007 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 2,274,558 Storm Drainage Improvements through 2017
2011 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 9,004,713 Storm Drainage Improvements through 2022
1992 Sewer Revenue Bonds Sewer Revenues 1,913,468 Sewer Capital Projects through 2014
2009 Sewer Revenue Bonds Sewer Revenues 39,919,456 Sewer Capital Projects through 2028
2010 Sewer Revenue Bonds Sewer Revenues 3,505,710 Sewer Capital Projects through 2020
2010 Light and Power Bonds Light and Power Revenues 15,955,258 Light and Power Capital Projects through 2020
Date % Revenue P & I for Recognized for
Issued Description Pledged 2012 2012
1997 Water Revenue Bond 1-15% 769,679 12,906,748
1999 Water Revenue Bonds 1-15% 365,521 12,906,748
2003 Subordinate Water Revenue Bonds 1-15% 188,224 12,906,748
2008 Water Revenue Bonds 1-15% 379,219 12,906,748
2009 Water Revenue Refunding Bonds 1-15% 1,992,213 12,906,748
2001 Storm Drainage Revenue Bonds 1-25% 861,198 9,370,548
2007 Storm Drainage Revenue Refunding Bonds 1-25% 1,999,739 9,370,548
2007 Storm Drainage Revenue Refunding Bonds 1-25% 452,043 9,370,548
2011 Storm Drainage Revenue Refunding Bonds 1-25% 892,661 9,370,548
1992 Sewer Revenue Bonds 1-25% 1,788,620 9,240,154
2009 Sewer Revenue Bonds 1-25% 2,374,806 9,240,154
2010 Sewer Revenue Bonds 1-25% 426,660 9,240,154
2010 Light and Power Bonds 1-25% 2,034,863 12,981,565
City of Fort Collins Comprehensive Annual Financial Report 67
The following tables display the debt service requirements to maturity for the obligations described:
Year Ending
December 31 Principal Interest Total
2013 10,409 3,761 14,170
2014 9,121 3,389 12,510
2015 9,481 2,978 12,459
2016 9,872 2,578 12,450
2017 9,878 2,196 12,074
2018-2022 27,453 5,956 33,409
2023-2027 11,190 2,217 13,407
2028-2032 2,602 121 2,723
$ 90,006 $ 23,196 $ 113,202
Year Ending
December 31 Principal Interest Principal Interest Total
2013 3,940 941 145 39 5,065
2014 4,090 769 155 34 5,048
2015 4,185 669 175 27 5,056
2016 4,265 567 195 20 5,047
2017 4,380 462 200 13 5,055
2018-2022 13,275 1,203 225 4 14,707
2023-2027 7,710 278 - - 7,988
$ 41,845 $ 4,889 $ 1,095 $ 137 $ 47,966
(amounts expressed in thousands)
Governmental Activities Business-Type Activities
Certificates of Participation Payments
Business-Type Activities
Revenue Bonds
68 City of Fort Collins Comprehensive Annual Financial Report
The following tables display the debt service requirements to maturity for the obligations described:
Year Ending
December 31 Principal Interest Principal Interest Total
2013 46 8 146 25 225
2014 48 7 153 23 231
2015 50 6 161 20 237
2016 53 6 168 18 245
2017 55 5 175 15 250
2018-2022 249 10 790 32 1,081
$ 501 $ 42 $ 1,593 $ 133 $ 2,269
Year Ending
December 31 Principal Interest Principal Interest Total
2013 915 79 78 5 1,077
2014 907 57 48 3 1,015
2015 929 35 49 1 1,014
2016 749 15 24 1 789
2017 219 2 8 - 229
$ 3,719 $ 188 $ 207 $ 10 $ 4,124
Year Ending
December 31 Principal Interest Total
2013 1,290 625 1,915
2014 1,370 546 1,916
2015 1,450 463 1,913
2016 1,465 375 1,840
2017 1,545 286 1,831
2018-2021 4,680 368 5,048
$ 11,800 $ 2,663 $ 14,463
(amounts expressed in thousands)
Assignment of Lease Payments
Governmental Activities Business-Type Activities
DDA - Tax Increment Bonds
Capital Lease Payments
Governmental Activities Business-Type Activities
Component Unit
City of Fort Collins Comprehensive Annual Financial Report 69
General long - term obligations of the primary government at December 31, 2012 is comprised of the following:
Date Description/Interest Rates Maturity Original Outstanding
Issued Dates Balance Balance
COPs / ALPs serviced by General Fund and General Improvement
District No. 1 Fund through the Fort Collins Capital Leasing
Corporation Debt Service Fund
2007 Lease Certificates of Participation (3.860%) 2018 $ 12,880,000 $ 7,450,000
2012 Lease Certificates of Participation (1.820%) 2026 34,395,000 34,395,000
2001 Assignment of Lease Payments - Police (4.70%) 2021 890,000 501,222
Other Obligations of Governmental Funds
N/A Capital lease obligations (secured by leased equipment) 2013 N/A 1,337,304
N/A Compensated absences N/A N/A 4,610,925
N/A Net pension obligation N/A N/A 2,765,738
N/A Net Post Employment Health Care Obligation N/A N/A 1,246,252
Other Obligations of Internal Service Fund used by
Governmental Activities
N/A Capital lease obligations (secured by leased equipment) 2012 N/A 2,381,668
N/A Compensated absences N/A N/A 539,709
N/A Claims Payable N/A N/A 5,261,114
Total $ 60,488,932
Component unit long - term debt at December 31, 2012, is comprised of the following obligations:
Bonds Serviced by Downtown Development Authority
Debt Service Fund
2010 Subordinate Tax Increment Revenue Bonds (4.010-6.080%) 2020 12,500,000 11,800,000
(secured by tax increment property taxes)
Other Obligations – Component Unit
N/A Compensated absences N/A N/A 8,537
Total $ 11,808,537
(Continued)
70 City of Fort Collins Comprehensive Annual Financial Report
Business-type long-term obligations at December 31, 2012 consists of the following:
Date Maturity Original Outstanding
Issued Description/Interest Rates Dates Balance Balance
Bonds, COPs, and ALPs, serviced by Enterprise Funds
Light and Power Fund
(secured by light and power revenues)
2010 Light and Power Bond (2.25-4.52%) 2020 $ 16,085,000 $ 13,215,000
Water Fund
(secured by water revenues)
1997 Water Revenue Bond (3.80-5.30%) 2017 10,125,300 2,940,844
1999 Water Revenue Bond (3.28-5.25%) 2019 4,998,395 1,960,741
2003 Subordinate Water Revenue Bonds (5.025% ) 2030 2,476,446 1,767,563
2008 Water Revenue Bond (3.46%) 2018 9,645,000 9,465,000
2009 Water Revenue Bond (2.25-4.00%) 2013 7,815,000 1,545,000
Storm Drainage Fund
(secured by storm drainage revenues)
2001 Storm Drainage Revenue Bond (4.50-5.25%) 2021 9,845,000 4,952,500
2007 Storm Drainage Revenue Refunding Bonds (4.086%) 2019 15,945,000 11,240,000
2007 Storm Drainage Revenue Refunding Bonds (4.086%) 2017 3,360,000 2,020,000
2011 Storm Drainage Revenue Refunding Bonds (2.49%) 2022 8,515,000 7,875,000
Wastewater Fund
(secured by sewer revenue)
1992 Sewer Revenue Bond (5.0-6.0%) 2014 24,540,580 1,685,168
2009 Sewer Revenue Bonds (2.0-5.0%) 2028 30,655,000 28,265,000
2010 Sewer Revenue Bonds (2.99%) 2020 3,900,000 3,075,000
1,374,697
Unamortized discount on bonds (16,734)
Golf Fund
(secured by golf revenue)
2007 Lease Certificates of Participation (3.860%) 2018 1,715,000 1,095,000
2001 Assignment of Lease Payments (4.70%) 2021 2,830,000 1,593,777
Other Obligations of Enterprise Funds
N/A Capital lease obligations (secured by leased equipment) 2012 N/A 207,503
N/A Net Post Employment Health Care Obligation N/A N/A 410,172
N/A Compensated absences N/A N/A 1,517,372
Other Obligations of the Internal Service Fund used by
Business-type Activities
N/A Compensated absences N/A N/A 361,925
Total $ 96,550,528
Unamoritized premium on bonds
City of Fort Collins Comprehensive Annual Financial Report 71
The City is in compliance with all significant limitations and restrictions. The City is maintaining all reserves
required by ordinances and agreements with other third parties. Within the governmental funds, these reserves are
being maintained in debt service and special revenue funds as required by ordinances or agreements.
Certificates of participation issued by the Fort Collins Capital Leasing Corporation are payable from rents collected
under a lease agreement between the City and the Leasing Corporation.
Refunding of Debt
On October 18, 2012, the City issued $34,395,000 of Series 2012 Certificates of Participation (COPs) with an
average interest rate of 1.82 percent, to advance refund $35,030,000 relating to outstanding Series 2004A
Certificates of Participation, with an interest rate ranging from 4.00 percent to 5.375 percent. Additional City funds
of $4,049,311 were used to purchase the new 2012 COPs (after payment of $113,218 in underwriting fees,
insurance, and other issuance costs). Those securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the 2004A COPs. The 2004A COPs will be redeemed in full on
June 1, 2014.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of
$1,599,304. This difference, reported in the accompanying financial statements as a deferred outflow of resources,
is being amortized over the life of the bonds.
The City completed the refunding to reduce its total debt service payments of the next 15 years by $9,900,820 and
to obtain an economic gain (difference between the present values of the old debt and new debt service payments)
of $4,749,110.
Conduit Debt Obligations
From time to time, the City has issued Industrial Development Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in
the public interest. The bonds are secured by sources external to the City and are payable solely from payments
received from outside parties. The City is not obligated in any manner for repayment of the bonds. Accordingly,
the bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2012, there were 19 series of Industrial Development Revenue Bonds outstanding, with an
estimated aggregate principal amount payable of $55.8 million.
Operating Leases
The City leases various facilities under operating leases, which are cancelable within one year. Costs for these
leases in 2012 were $279,383.
72 City of Fort Collins Comprehensive Annual Financial Report
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2012 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Primary Government:
Governmental Activities
Bonds, COPS, and ALPs:
Tax revenue bonds $ 340,000 $ - $ (340,000) $ - $ -
Fort Collins Leasing Corporation
Certificates of participation 45,870,000 34,395,000 (38,420,000) 41,845,000 3,940,000
Assignment of lease payments 545,244 - (44,022) 501,222 45,935
Total bonds, COPS and ALPS 46,755,244 34,395,000 (38,804,022) 42,346,222 3,985,935
Add other financing sources (bond premium) 1,048,945 - (1,048,945) - -
Total bonds, COPs and ALPs 47,804,189 34,395,000 (39,852,967) 42,346,222 3,985,935
Other Liabilities:
Capital leases 2,754,960 1,800,899 (836,887) 3,718,972 915,480
Compensated absences 4,592,746 4,691,661 (4,133,773) 5,150,634 5,150,634
Claims payable 5,554,691 16,106,678 (16,400,255) 5,261,114 2,297,931
Net pension obligation 1,771,638 994,100 - 2,765,738 -
Net post employment health care obligation 1,210,061 36,191 - 1,246,252 -
Total other liabilities 15,884,096 23,629,529 (21,370,915) 18,142,710 8,364,045
Governmental activities
long-term liabilities $ 63,688,285 $ 58,024,529 $ (61,223,882) $ 60,488,932 $ 12,349,980
Business-Type Activities
Bonds, COPS, and ALPs:
G.O. & revenue bonds $ 100,379,689 $ - $ (10,372,873) $ 90,006,816 $ 10,409,393
Fort Collins Leasing Corporation
Certificates of participation 1,230,000 - (135,000) 1,095,000 145,000
Assignment of lease payments 1,733,756 - (139,979) 1,593,777 146,065
103,343,445 - (10,647,852) 92,695,593 10,700,458
Add bond premium 1,592,425 - (217,728) 1,374,697 209,394
Less bond discount and (20,526) - 3,792 (16,734) (3,792)
Total bonds, COPs and ALPs 104,915,344 - (10,861,788) 94,053,556 10,906,060
Other Liabilities:
Capital leases 244,805 77,381 (114,683) 207,503 78,238
Compensated absences 1,840,289 2,008,284 (1,969,276) 1,879,297 1,879,297
Net post employment health care obligation 391,769 18,403 - 410,172 -
Total other liabilities 2,476,863 2,104,068 (2,083,959) 2,496,972 1,957,535
Business-type activities
long-term liabilities $ 107,392,207 $ 2,104,068 $ (12,945,747) $ 96,550,528 $ 12,863,595
Component Unit:
Bonds:
Tax revenue bonds $ 12,500,000 $ - $ (700,000) $ 11,800,000 $ 1,290,000
Total bonds 12,500,000 - (700,000) 11,800,000 1,290,000
Compensated absences 9,272 24,939 (25,674) 8,537 8,537
Component unit
long-term liabilities $ 12,509,272 $ 24,939 $ (725,674) $ 11,808,537 $ 1,298,537
Changes in short-term obligations
Component Unit:
Short Term Obligation - line of credit $ - $ 621,980 $ (621,980) $ - $ -
City of Fort Collins Comprehensive Annual Financial Report 73
Compensated Absences for Governmental Activities
The General Fund is primarily used to liquidate the liability for compensated absences.
Internal service funds, except for the Utility Customer Service and Administration Fund, predominantly serve the
governmental funds. Accordingly, long-term liabilities for these funds are included as part of the above totals for
governmental activities. Long-term liabilities of the Utility Customer Service and Administration internal service
fund are included as part of the totals for the business-type activities on the proceeding page.
Net Pension Obligation for Governmental Activities
The liability for net pension obligation is liquidated primarily by the General Fund.
Internal service funds, except for the Utility Customer Service and Administration Fund, predominantly serve the
governmental funds. Accordingly, long-term liabilities for these funds are included as part of the above totals for
governmental activities. Long-term liabilities of the Utility Customer Service and Administration internal service
fund are included as part of the totals for the business-type activities on the proceeding page.
Net Post Employment Health Care Obligation for Governmental Activities
The General Fund is primarily used to liquidate the liability for net post employment health care obligation.
Internal service funds, except for the Utility Customer Service and Administration Fund, predominantly serve the
governmental funds. Accordingly, long-term liabilities for these funds are included as part of the above totals for
governmental activities. Long-term liabilities of the Utility Customer Service and Administration internal service
fund are included as part of the totals for the business-type activities on the proceeding page.
F. Fund Balances
GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions” establishes criteria
for classifying fund balances into specifically defined classifications and clarifies definitions for governmental fund
types. The following represents these classifications and the purposes for which the amounts can be spent.
74 City of Fort Collins Comprehensive Annual Financial Report
Fund Balances (Deficit): General
Keep Fort
Collins Great Transportation
Capital
Projects
Urban
Renewal
Authority
Non-major
Governmental Total
Nonspendable:
Advances $ 5,496,830 $ - $ - $ - $ 5,303,939 $ - $ 10,800,769
Inventories 2,896,665 - - - - - 2,896,665
Prepaids 200 - 150 - - 6,914 7,264
Long-term notes & loans receivables 125,000 - - - - - 125,000
Total Nonspendable 8,518,695 - 150 - 5,303,939 6,914 13,829,698
Restricted:
Voter approved capital 37,500 - - 16,939,691 - 2,569,999 19,547,190
Building on basics - Police CAD 283,288 - - - - - 283,288
Civic Center Parking - - 818,432 - - - 818,432
Conservation Trust - - - - - 1,689,393 1,689,393
Convention & Visitors Bureau 72,052 - - - - - 72,052
Economic Rebates 3,039,391 - - - - - 3,039,391
Emergency 4,749,415 - - - - - 4,749,415
Fiscal Agent 16,474 - 79,573 - - - 96,047
HOME - - - - - 475,673 475,673
Horticulture 254,693 - - - - - 254,693
Larimer County Drug Task Force 620,562 - - - - - 620,562
KFCG Street Maintenance - 1,156,789 - - - - 1,156,789
KFCG Other Transportation - 3,689,573 - - - - 3,689,573
KFCG Police Services - 2,924,681 - - - - 2,924,681
KFCG Fire & Emergency Services - 404,283 - - - - 404,283
KFCG Parks & Rec - 743,768 - - - - 743,768
KFCG Other - 1,383,754 - - - - 1,383,754
Museum Donations - - - - - 46,079 46,079
Natural Areas - - - - - 8,004,274 8,004,274
Notes & loans receivable - - - - - 125,000 125,000
Perpetual Care - - - - - 1,640,377 1,640,377
Tree Donations 34,303 - - - - - 34,303
PEG Distribution 165,717 - - - - - 165,717
Police CAD Replacement 331,856 - - - - - 331,856
Recreation Donations - - - - - 23,949 23,949
Udall Property 145,362 - - - - - 145,362
Total Restricted 9,750,613 10,302,848 898,005 16,939,691 - 14,574,744 52,465,901
Committed:
Art in public places - - - - - 256,825 256,825
Advances - - - - - 4,834,743 4,834,743
Capital expansion - General government - - - - - 1,324,618 1,324,618
Capital expansion - Police - - - - - 1,008,220 1,008,220
Capital expansion - Fire - - - - - 262,255 262,255
Capital expansion - Community Parkland - - - - - 9,156,115 9,156,115
Capital projects - - - - - 131,885 131,885
Cultural development and planning 122,521 - - - - - 122,521
Cultural, Park, Rec & Enviroment - - - - - 4,728,582 4,728,582
Encumbrances - - - - - 891,562 891,562
Operations - - - - - 36,755 36,755
Planning & Development - - - - - 538,899 538,899
Maintenance, Mitigation & Improvement 10,092 - - - - - 10,092
Traffic calming 455,954 - - - - - 455,954
City of Fort Collins Comprehensive Annual Financial Report 75
NOTE IV. OTHER INFORMATION
A. Risk Management
Property, Liability, and Workers Compensation
The City self-insures a portion of its comprehensive automobile liability, general liability, police liability, and
public official liability exposures as well as damage or destruction of property. The City utilizes the Self-Insurance
Fund (an internal service fund) to finance and account for risks of property and liability loss.
The City purchases property insurance that has a $50,000 deductible for most causes of loss including earthquake
and flood. Special flood hazard areas of 100 year flooding, as defined by FEMA have a deductible of 5% of the
total insurable value at each location, subject to a minimum of $500,000 at any one occurrence. Crime and boiler &
machinery coverage has a $10,000 deductible. Vehicles have a $100,000 deductible.
In 2012, the City purchased liability insurance through a risk retention group called States. This policy has a
$500,000 deductible for all types of liability claims. Coverage limits are as follows:
General, Auto, Law Enforcement & Wrongful Acts Liability – $3 million/occurrence, $6 million aggregate.
Public Official Liability - $3 million/each wrongful act, $6 million aggregate.
Workers’ Compensation losses are self-insured up to $400,000 per occurrence. Employees in the Electrical Utility
function are self-insured up to $750,000 per occurrence. An excess policy providing limits mandated by the State
of Colorado provides coverage above the self-insured retention.
In 2012, the Downtown Development Authority, a component unit, purchased general, public official liability,
property, workers compensation, and umbrella insurance policies from private insurance companies. The general
liability policy has no deductible, the public official liability policy has a $1,000 deductible and the employment
related practice claims have a 50% of loss, with a maximum $100,000 per occurrence deductible. The property
insurance policy has a deductible of $500. Coverage limits are as follows:
General Liability – $1,000,000/occurrence, unlimited aggregate
Public Official Liability - $1,000,000/occurrence, unlimited aggregate.
Umbrella Liability - $1,000,000/occurrence, unlimited aggregate.
Workers Compensation Liability - $2,000,000 per accident/illness.
Employee Health and Illness
The City and the component unit self-fund their employees for comprehensive major medical benefits under two
health plan options. The two options include one low Preferred Provider Options (PPO) and one high Preferred
Provider Options (PPO). The Benefits Fund (an internal service fund) is utilized to finance and account for medical
risks of loss. Stop-loss coverage of $215,000 per occurrence is retained as excess risk coverage. During the past
three years, there have been 10 claims that have exceeded the stop-loss limit.
Funding and Claims Liabilities
All funds or employees of the City, as applicable, participate in the above risk management programs. Charges to
City funds for these services are based on estimates of the amounts needed to pay claims, establish reserves for
catastrophic losses, and pay policy premiums.
Claims liabilities for the Self-Insurance and Benefits Funds as of December, 31, 2012, amount to $4,000,839 and
$1,260,275 respectively. These claims were determined on an actuarial basis, and reflect the Governmental
Accounting Standards Board (GASB) Statement No. 10 requirement that a liability for claims be reported, if
information prior to the issuance of the City's financial statements indicates that it is probable that a liability has
been incurred at December 31, and the amount of the loss can be reasonably estimated. The liability of $4,000,839
76 City of Fort Collins Comprehensive Annual Financial Report
for the Self Insurance Fund is undiscounted and reflects an 80% confidence level factor. The discount refers to the
full or undiscounted amount reduced for future investment earnings that can be generated on funds held between
the date of valuation and the date of the final payment of claims. Changes in claims liabilities amounts for 2010,
2011 and 2012 are as follows:
Insurance Recoveries
The City of Fort Collins recovered $22,258 from 3rd party sources for damages caused to city owned property.
B. Employee Retirement Systems and Pension Plans
General Employees' Retirement Plan
Plan Description
All permanent, classified, non-uniformed employees hired before January 1, 1999 are eligible to be members of the
General Employees' Retirement Plan (the Plan), a single-employer defined benefit plan. Employees hired after
January 1, 1999 are only eligible to participate in the Money Purchase Plan explained on page 78. The benefits and
refunds of the General Employees’ Retirement Plan are recognized when due and payable in accordance with the
terms of the plan.
The Plan is accounted for in the General Employees' Retirement Plan Pension Fund (a pension trust fund).
Separate financial statements are not issued for the Plan. As of January 1, 2013, employee membership data related
to the Plan was as follows: Retirees and beneficiaries currently receiving benefits--185; vested terminated
employees--129; active plan participants--140
Benefits vest 40% after 2 years of credited service and 20% for each year thereafter until 100% is attained after 5
years. Employees who retire at or after age 65 with 5 years of credited service are entitled to an annual retirement
benefit, payable monthly for life, in an amount equal to 1-1/2% of final average monthly compensation multiplied
by years of credited service. Final average monthly compensation is the highest average of the considered
compensation during 60 consecutive full calendar months out of the last 120 calendar months of credited service.
A member is eligible for an early retirement benefit after age 55 and completion of 2 years of credited service. The
monthly benefit, payable for life, is equal to the vested portion of the normal retirement benefit based on credited
service and compensation at early retirement, reduced by 1/180th for each of the first 60 months and 1/360th for
each additional month by which payments commence prior to normal retirement date. The Plan also provides for
death and disability benefits. The entire cost of the Plan is paid by the City as established or amended by City
Council.
A death benefit of approximately 50% of the member's vested accrued benefit at the date of death is payable to the
employee's spouse for life beginning on the first day of the month following the later of the date of death or the date
the member would have been age 55. The spouse may elect to receive the actuarial equivalent lump-sum payment.
If the member was not married, the beneficiary or estate would receive the actuarial single-sum payment of the
benefit.
The Plan does not issue a stand-alone financial report.
Self-Insurance Benefits
Claims payable - December 31, 2010 $ 3,887,177 $ 1,740,127
Claims & changes in estimates 1,976,382 13,927,406
Claim payments (1,546,454) (14,429,947)
Claims payable - December 31, 2011 4,317,105 1,237,586
Claims & changes in estimates 748,733 15,357,945
Claim payments (1,064,999) (15,335,256)
Claims payable - December 31, 2012 $ 4,000,839 $ 1,260,275
City of Fort Collins Comprehensive Annual Financial Report 77
Annual Pension Cost
The costs of the Plan are derived by making certain specific assumptions as to the rates of interest and mortality,
which are assumed to hold for many years into the future. Since actual experience may differ somewhat from the
assumptions, the costs determined by the valuation must be regarded as estimates of the true costs of the Plan.
Three 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.
The schedule of funding progress, presented as required supplementary information following the notes to the
financial statements, presents multiyear trend information about whether the actuarial values of plan assets are
increasing or decreasing over time relative to the AALs for benefits.
CALCULATION OF NET PENSION OBLIGATION AND PENSION COST
(As required by GASB No. 27)
Annual Net Pension Net Pension Increase
Required Obligation Interest on Amorti- Annual Actual Obligation (Decrease)
Plan Contribution (NPO) as NPO to zation ARC Pension Employer at End Net Pension
Year (ARC) of January 1 End of Year Factor Adjustment Cost (APC) Contribution of Year Obligation
2010 1,892,946 1,753,873 131,540 8.7 200,780 1,823,706 2,100,467 1,477,112 (276,761)
2011 1,706,844 1,477,112 110,783 8.3 177,635 1,639,992 1,345,466 1,771,638 294,526
2012 2,334,577 1,771,638 120,471 8.08 219,019 2,236,029 1,241,929 2,765,738 994,100
% of
Annual Annual
Plan Pension Employer Pension
Year Cost Contribution Cost
2010 1,823,706 2,100,467 115%
2011 1,639,992 1,345,466 82%
2012 2,236,029 1,241,929 56%
Actuarial Actuarial Unfunded UAL as a
Actuarial Value of Accrued Actuarial Funded Covered Percentange of
Valuation Assets Liability Liability (UAL) Ratio Payroll Covered Payroll
Date (a) (b) (b) - (a) (a) / (b) (c) [(b) - (a)] / (c)
1/1/2011 39,974,052 49,651,276 9,677,224 80.5% 10,399,210 93.1%
1/1/2012 39,973,803 53,813,281 13,839,478 74.3% 9,582,235 144.4%
1/1/2013 38,940,438 54,682,992 15,742,554 71.2% 8,834,557 178.2%
SCHEDULE OF FUNDING PROGRESS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
78 City of Fort Collins Comprehensive Annual Financial Report
Contributions and Reserves
The Plan's funding policy provides for actuarially determined periodic rates determined by the entry age normal
cost method. Under this method, the actuarial present value of the projected benefits of each individual included in
the valuation is allocated on a level basis over the earnings of the individual between entry age and assumed exit
age. Contributions are based on the actuarially determined rates. For 2012, the City contributed 10.50% of covered
pay to the Plan as well as the supplemental contributions; this amounted to $1,241,929. The authority for
establishing or amending the obligation to make contributions rests with City Council.
Costs of administering the Plan are all financed from contributions and earnings of the Plan. The entire balance of
the Plan's net assets available for benefits as of December 31, 2012, is $39,489,065 all of which is reserved for
benefits of employees and beneficiaries.
Concentration of Credit Risk
Investments in mutual funds exceeding 5% of the net assets of the plan are as follows: Mutual Shares Fund –
7.51%, TRP New Asia – 7.15%, Fidelity Value Fund – 6.20%, American Amcap Fund – 5.81% and TRP
International – 5.40%.
Money Purchase Plan 401(a)
The City offers its employees a defined contribution money purchase plan. The City does not have administrative
involvement and does not perform the investment function of this plan. Classified employees were offered the plan
for the first time in 1995. In a defined contribution plan, benefits depend solely on amounts contributed to the plan
plus investment earnings. Employees are eligible to participate six months from the date of employment. The plan
requires both employer and employees to contribute amounts ranging from 3% to 10% (depending on job
classification) of base salary each pay period. Contributions made by the City are not taxable to the employee until
they are withdrawn. Employee contributions are made with pre-tax dollars, and the earnings on City and employee
contributions are not taxed until withdrawn. Except for certain categories of police personnel, employees are fully
vested upon initial participation in the plan. Sworn police officers and emergency service dispatchers, who receive
higher contribution rates, are fully vested upon completion of three years of service. Plan provisions and
contribution requirements are established and may be amended by City Council. City and employee contributions
to the plan were $4,606,255 and $2,902,384, respectively during 2012.
Actuarial plan assumptions:
Valuation date: January 01, 2013
Actuarial cost method: Entry Age Normal
Amortization method: 10 years, as a level dollar amount.
Remaining amortization period: 10 years
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 6.8% interest (effective January 1, 2012). The unrecognized
gain or loss 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
expected actuarial value plus the amortization of prior gain or losses 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: 6.8% (including inflation at 2.5%)
Projected pay increases: Ranges from 4.5% at age 30 to 3.6% at age 65+ (including inflation at 2.5%)
City of Fort Collins Comprehensive Annual Financial Report 79
Retirement Health Savings Plan (RHS)
In 2006 and 2007, the City offered to classified and unclassified management employees the employer-sponsored
health benefits savings vehicle that allowed the employee to accumulate assets to pay for medical expenses in
retirement on a tax-free basis. As of 12/31/07, that plan has been frozen. There can no longer be any money
withheld for this plan. Police Services, through the Collective Bargaining Agreement (CBU), continue to offer a
mandatory RHS plan to collective bargaining unit members only. Both the frozen City plan and the current CBU
plan are administered by ICMA-RC. The City does not have administrative involvement and does not perform the
investment function of this plan.
The RHS plan offers triple tax advantage to employees. Employee contributions are made through pre-tax payroll
deductions, are invested in ICMA-RC funds and grow tax-free, and monies can be withdrawn tax-free for
qualifying expenses. No federal, state or FICA tax will be withheld. Employees cannot change their elections after
their initial enrollment. The CBU RHS plan requires a mandatory 1% contribution to be made by all qualifying
participants. Once the participant becomes eligible to get reimbursed from their own RHS account, they can turn in
receipts to a 3rd party administrator and be reimbursed with tax-free monies. If the employee passes away, the
employee’s spouse and dependents are automatically eligible to use the account and are reimbursed on a tax-free
basis. Employee contributions to the CBU RHS plan were $155,427 during 2012.
Statewide Death and Disability Plan
Plan Description
The City contributes to the Fire & Police Pension Association (the Plan), a multi-employer cost sharing defined
benefit plan covering full-time employees of substantially all fire and police departments in Colorado.
Contributions to the Plan are used solely for the payment of death and disability benefits. The Plan was established
in 1980 pursuant to Colorado Revised Statutes. All uniformed employees are eligible to be members of the Fire &
Police Pension Association.
Funding Policy and City Contributions
Prior to 1997, the State of Colorado, whose contributions were established by Colorado statute, primarily funded
the Plan. The State made a one-time contribution in 1997 of $39,000,000 to fund the past and future service costs
for all firefighters and police officers hired prior to January 1, 1997. No further State contributions are anticipated.
The annual contribution rate for members hired on or after January 1, 1997 and for members covered by Social
Security is 2.6% as of January 1, 2011. The rate was last increased from 2.5% to 2.6% as of January 1, 2007.
Based on the January 1, 2012 valuation, the Board has elected to leave the contribution rate unchanged at 2.6% for
the two year period beginning January 1, 2011. During 2012, 2011 and 2010, the City’s contributions were
$285,521, $247,364 and $217,697 respectively, equal to the statutory required contribution each year.
Benefits
Benefits are established by Colorado statute.
If a member dies prior to retirement, the surviving spouse is entitled to a benefit equal to 40% of the member’s
monthly base salary with an additional 10% of base salary if a surviving spouse has two or more dependent
children, or if there are three or more dependent children without a surviving spouse. 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 for cases of total disability. Effective October 1, 2002, the benefit is 50% of base salary for a
permanent occupational disability and 40% of base pay for a temporary occupation disability.
80 City of Fort Collins Comprehensive Annual Financial Report
Benefits paid to members are evaluated and may be re-determined on October 1 of each year. Any increase in the
level of benefits cannot increase by more than 3% for any one year. Totally disabled members and their
beneficiaries receive an automatic cost of living adjustment each year of 3%.
Separately issued financial statements and the related actuarial valuation may be obtained from the Fire & Police
Pension Association.
C. Other Postemployment Benefits
Plan Description
The City sponsors a single-employer health care plan that provides medical, vision, dental and prescription drug
benefits to all retired employees and their eligible dependents. Employees retiring on or after January 1, 2010 are
no longer eligible to participate in the Retiree Health Plan. In addition, those employees retiring on or after
September 1, 2009 but before January 1, 2010 and elect retiree health coverage may participate in the Retiree
Health Plan until age 65. To be eligible an employee must have had at least 10 or more years of service. The City
administrative policy authorized this benefit until January 1, 2010. For the year 2012, the City did not have an
actuarial valuation based on the number of members in the plan being under 200. The plan does not issue a stand-
alone financial report.
Funding Policy and City Contributions
Employees pay the full premium. The current funding policy of the City is to pay health claims as they occur
through internal allocated funds.
The required contribution is based on projected pay-as-you-go financing. For fiscal year 2012, the City contributed
$91,599. Retiree and active members receiving benefits contribute monthly premiums as outlined:
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined in accordance to the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the
normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The
following table shows the components of the City’s annual OPEB cost for the year, the amount actuarially
contributed to the plan and changes in the City’s annual OPEB obligation:
Core Advantage
Non- Core Non- Advantage
Medicare Medicare Medicare Medicare Dental Vision
Employee: $ 826 $ 331 $ 931 $ 372 $ 33 $ 7
Employee +1: $ 1,653 $ 661 $ 1,859 $ 744 $ 60 $ 13
City of Fort Collins Comprehensive Annual Financial Report 81
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB
obligations for 2012 and the two preceding years follows.
Funded status and funding progress
Post Employment Benefit Obligations under GASB Statement No. 45 calculated as of December 31, 2011 the most
recent actuarial valuation date is as follows:
The covered payroll (annual payroll of active employees covered by the plan) was $73,288,492 and the ratio of the
UAAL to the covered payroll was 3.7%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multi-year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
Actuarial methods and assumptions
Projections and benefits for financial reporting purposes are based on the substantive plan (the plan as understood
by the employer and the plan members) and included in the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The
actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations.
Annual required contribution $ 228,342
Interest on net OPEB obligation 58,810
Adjustment to annual required contribution (140,959)
Annual OPEB cost (expense) 146,193
Contributions and payments made 91,599
Increase in net OPEB obligation 54,594
Net OPEB obligation - January 1, 2012 1,601,830
Net OPEB obligation - December 31, 2012 $ 1,656,424
Percentage of
Annual Annual OPEB Net OPEB
Fiscal Year Ended OPEB Cost Cost Contributed Obligation
December 31, 2010 $ 653,168 7.8% $ 1,994,911
December 31, 2011 $ 152,717 34.6% $ 1,601,830
December 31, 2012 $ 146,193 62.7% $ 1,656,424
Total Members
Actuarial Accrued Liability
Current retirees, beneficiaries and dependents $ 2,721,966 33
Current active members -
Total Actuarial Accrued Liability (AAL) 2,721,966
OPEB Plan Assets -
Unfunded Actuarial Accrued Liability (UAAL) $ 2,721,966
82 City of Fort Collins Comprehensive Annual Financial Report
D. Commitments/Contingencies
Construction Commitments
The City had commitments of $1,551,671 for capital projects in governmental fund types and $438,218 in
proprietary fund types at December 31, 2012. Future expenditures related to these commitments are expected to be
financed through available resources and future revenues.
Encumbrance Commitments for Proprietary Fund Types
The financial statements do not include encumbrances for proprietary fund types. However, encumbrances for
these funds are recorded by the City for management and budgetary control purposes. Outstanding encumbrance
commitments for the enterprise funds at December 31, 2012 (excluding those relating to capital projects) amounted
to $32,069,114.
Street Oversizing Liability
The City has contractual liabilities for street oversizing costs with various developers. The developers are required
to install certain oversized streets as a condition of subdivision approval. Once the streets are installed and
inspected by the City, a liability is recorded for the difference between a normal sized street and the oversized street
installed.
Because the City has no control over when subdivisions will be developed and the related oversized street
completed, the liability for uncompleted oversizing costs has not been reflected in the financial statements.
E. Legal Matters
Pending Litigation and Grants
Various claims and lawsuits are pending against the City. After consideration of applicable insurance policy
coverage, and the relative merits of each claim or lawsuit, it is the opinion of the City Attorney and City
management that the potential ultimate liability resulting from these actions, if any, will not have a material adverse
financial effect on the City.
Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not
being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursement to the
grantor agencies. City management believes disallowances, if any, resulting from any such audits would be
immaterial. There currently are no material disallowed or questioned costs.
Tax, Spending, and Debt Limitations
Actuarial Plan Assumptions
Valution date: December 31, 2011
Actuarial cost method: Projected Unit Credit Method
Amortization method: 15 years, as a level dollar amount
Remaining amortization period: 15 years
Asset valuation method: An expected actuarial value is determined equal to a 3.5% discount rate per year.
The medical trend rate beginning in 2012 is 7.2% per year pre and post-Medicare
eligible increasing to 7.6% for 2013 before grading to 4.4% over 86 years from 2013.
Trends for dental and vison benefits begin at 5.0% fpr 2011, grading to 4.4%
over 87 years. The inflation rate assumption is 2.5%.
Discount rate: 3.5%, net of adminstrative expenses
Projected pay increases: 0%. The plan was closed to new retirees effective December 31, 2009.
City of Fort Collins Comprehensive Annual Financial Report 83
Article X, Section 20, of the State Constitution has several limitations, including those for revenue, expenditures,
property taxes, and issuance of debt. These provisions of the Constitution are complex and subject to judicial
interpretation. In the opinion of management, the City is in compliance with such provisions. In 1997, the City’s
electorate approved the ongoing retention of excess revenue by the City, requiring the excess revenue be spent for
specified purposes. This alleviated the need by the City to seek annual approval to retain excess revenue and
excess property tax. The City did not exceed the revenue limitation in 2012, and did not exceed the property tax
limit by $911,001.
The excess revenue will be used for the purposes of public health and safety (including, but not limited to
environmental monitoring and mitigation), growth management, transportation services, and maintaining and
repairing City facilities.
The amendment requires local governments to establish emergency reserves equal to at least 3% of fiscal year
spending as defined in the amendment. These emergency reserves cannot be used to compensate for economic
conditions, revenue short falls, or salary and benefit increases. As of December 31, 2012, the amount required as
an emergency reserve in compliance with the amendment is $4,749,415 and is shown as a restriction of fund
balance in the General Fund.
F. Related Party Transactions
Due to the nature of the relationships, the City has related party transactions with various entities. The following
transactions have occurred during 2012:
Fort Collins-Loveland Airport
Intergovernmental Agreement
The Airport is jointly operated under an Intergovernmental Agreement between the City of Fort Collins, Colorado
and the City of Loveland, Colorado. Pursuant to the agreement, any needed contributions for annual operating
budgets or capital improvements are shared equally by both cities. Also, either City may invest additional funds in
the Airport as it sees fit.
Since July 3, 1979, ownership of assets vests equally with each 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 agreement provides that if either City does not pay its one-half of agreed expenses in a given year, it will
convey to the other City ten percent of its total Airport ownership. Each City contributed $85,000 in 2011 and in
2012.
Financial Information
The Fort Collins-Loveland Municipal Airport is accounted for as a proprietary joint venture. A summary of
financial information is as follows:
84 City of Fort Collins Comprehensive Annual Financial Report
The City’s annual contribution is reflected as another expenditure of the General Fund. The City’s share of Fort
Collins-Loveland Airport’s Net Position and Change in Net Position are reflected in the City’s Statement of Net
Position and Statement of Activities, respectively.
Stand-Alone Financial Statements
The stand-alone financial statements for the Fort Collins-Loveland Airport can be obtained from the City of
Loveland Finance Department at 500 East Third Street, Loveland, Colorado, 80537.
Town of Timnath
The City and the Town of Timnath entered into an intergovernmental agreement for the Boxelder Overflow Project
on February 19, 2009. The City agreed to reimburse Timnath for up to 50% of the costs actually incurred by
Timnath in the design, engineering, right-of-way acquisition and construction of the Boxelder Overflow Project but
not to exceed $2,000,000. The City deposits $200,000 a year into an escrow account that is managed by an escrow
agent.
Poudre Fire Authority
As mentioned in the summary of significant accounting policies, the City provides funding for PFA. During 2012,
such funding amounted to $19,335,813. In addition, the City provided accounting and administrative services to
PFA at no charge.
Platte River Power Authority
The Light and Power Fund purchases all of its electrical power from PRPA. During 2012, these purchases
amounted to $75,953,224 of which $6,015,085 is included in accounts payable at December 31, 2012.
Total current assets $ 1,825,729
Total capital assets (net of
accumulated depreciation) 21,091,123
Total Assets 22,916,852
Total current liabilities (392,142)
Total Net Position 22,524,710
Net assets invested in capital assets 21,091,123
Restricted capital 80,460
Unrestricted net position 1,353,127
Total Net Position $ 22,524,710
Total operating revenue $ 1,001,600
Total operating expenses (2,218,393)
Interest Income 11,929
Nonoperating revenue 320,375
Capital contributions 976,036
Change in Net Position $ 91,547
As of December 31, 2012
For year ending December 31, 2012
City of Fort Collins Comprehensive Annual Financial Report 85
Fort Collins Housing Authority
The City allows the Fort Collins Housing Authority (FCHA) to participate in its employee benefit plans and bills
the Fort Collins Housing Authority for this coverage. In addition, FCHA also uses the City’s fleet services for
vehicle maintenance. During 2012, billings for benefits and services amounted to $129,256.
North Front Range Transportation and Air Quality Planning Council
The City allows the North Front Range Transportation and Air Quality Planning Council (NFRTAQPC) to
participate in its employee benefit plans and bills NFRTAQPC for this coverage. In addition, NFRTAQPC also
used the City’s fleet services for vehicle maintenance. During 2012, billings for benefits and services amounted to
$679,726.
G. Change in Net Position and Fund Balance
As a result of the adoption of GASB Statement No. 65 “Items Previously Reported as Assets and Liabilities”, the
beginning net position of the governmental activities, business-type activities, Light & Power fund, Water fund,
Wastewater fund, Storm Drainage fund, Golf fund and discretely presented component unit (DDA) was restated.
The following is a summary of the adjustment:
H. Subsequent Events
The City of Fort Collins and the Downtown Development Authority entered into an agreement with Woodward,
Inc. in April 2013 in order to provide business investment assistance to Woodward for the relocation and
construction of its headquarters and expanding its manufacturing facilities in Fort Collins. Woodward will be
dedicating 31 acres of open space to the City as part of the downtown campus development. There are four
potential phases with this agreement. The total business assistance is valued at $12.7 million to $23.5 million of
which 85% is a reinvestment of revenue from the project. This consists of property tax increment, use tax rebates,
City fee rebates and a reimbursement reserve. The City has appropriated $2.3 million to fund the reimbursement
reserve which will be needed if only phase one is developed. Woodward has agreed to fund the cost of public
improvements and the City and DDA will reimburse Woodward from the property tax increment attributable to
construction of buildings and implementation of uses within the Woodward Project on E. Lincoln Avenue.
The City of Fort Collins approved a redevelopment and reimbursement agreement with the Fort Collins Urban
Renewal Authority, Walton Foothills Holdings VI, LLC and the Foothills Metropolitan District regarding the
redevelopment of the Foothills Mall. The City adopted the Midtown Urban Renewal Plan in September 2011.
Located with the Midtown URA is the Foothills Fashion Mall. The redevelopment will include a mixed-use
redevelopment with a commercial/retail component, a commercial parking structure and up to 800 multi-family
dwelling units. Total public improvement costs eligible for reimbursement totals $53 million. The Metro District
has assigned property tax revenue and public improvement fees as funding sources. The URA pledges property tax
increment revenue as well as revenue from sales tax increments. Net new sales tax revenue for the City in 2015 is
approximately $2.9 million per year.
Governmental Business-Type Light Storm
Activities Activities and Power Water Wastewater Drainage Golf DDA
Net position December 31, 2011,
as previously reported $ 780,427,573 $ 652,417,581 $ 166,743,961 $ 252,725,007 $ 137,628,830 $ 89,986,680 $ 4,796,246 $ 5,864,238
Unamortized debt issuance costs
previously reported as assets (558,683) (655,011) (164,976) (103,106) (232,197) (121,918) (32,814) (109,346)
Net position December 31, 2011,
as restated $ 779,868,890 $ 651,762,570 $ 166,578,985 $ 252,621,901 $ 137,396,633 $ 89,864,762 $ 4,763,432 $ 5,754,892
86 City of Fort Collins Comprehensive Annual Financial Report
REQUIRED SUPPLEMENTARY INFORMATION
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 on a three year cycle assuring that all data is updated
within three year period. 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 City of Fort Collins is changing its focus from specifying a targeted average condition value to setting a
specified Level of Service (LOS). Setting a LOS will allow for a range of funding needs to be determined to assess
what funding level best suits the needs of the City in terms of desired LOS and available funding.
LOS is a customer-driven measurement of condition. The City of Fort Collins’ goal is to maintain a LOS of “B”.
LOS B is a high level of service in which pavements are in good condition, few deficiencies are present, the roads
are providing good ride quality, low vehicle operating costs, minor signs of deterioration, and with few safety-
related issues. Preventive and corrective maintenance activities can be used to keep the average network condition
maintained. As of December 2012, the City’s street system is at a PCI of 71, just within the LOS of “B”. The
City’s street system was at a PCI of 72 in 2011, 71 in 2010, and 71 in 2009. The average detail condition is as
follows:
Level of service ................................................................. PCI Range................................. Percent of Roads
LOS A (best) ..................................................................... 100 to 86 .................................................... 20.0%
LOS B (good) ................................................................... 85 to 71 .................................................... 37.9%
LOS C (fair) ...................................................................... 70 to 56 .................................................... 25.6%
LOS D (poor) .................................................................... 55 to 41 .................................................... 15.2%
LOS F (worst) ................................................................... 40 to 0 ........................................................ 1.3%
The City's next full 3 year assessment cycle will be completed in 2015.
City of Fort Collins Comprehensive Annual Financial Report 87
REQUIRED SUPPLEMENTARY INFORMATION (continued)
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (continued)
The City's streets are constantly deteriorating resulting from the following five factors; (1) traffic loads; (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's short-term maintenance expenditures delay deterioration; however, the overall network condition is not
improved through these maintenance expenditures. The City has estimated the amount of annual expenditures
required to maintain the City's streets at a Level of Service B. 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 five years is presented below:
Year
Maintenance
Estimate
Actual
Expenditure
2012 $ 14,326,456 $ 14,320,409
2011 $ 14,117,351 $ 13,742,753
2010 $ 13,378,521 $ 7,323,073
2009 $ 10,123,079 $ 7,848,312
2008 $ 9,736,502 $ 10,733,015
88 City of Fort Collins Comprehensive Annual Financial Report
REQUIRED SUPPLEMENTARY INFORMATION (continued)
Pension
Actuarial Actuarial Unfunded UAL as a
Actuarial Value of Accrued Actuarial Funded Covered Percentange of
Valuation Assets Liability Liability (UAL) Ratio Payroll Covered Payroll
Date (a) (b) (b) - (a) (a) / (b) (c) [(b) - (a)] / (c)
1/1/2011 39,974,052 49,651,276 9,677,224 80.5% 10,399,210 93.1%
1/1/2012 39,973,803 53,813,281 13,839,478 74.3% 9,582,235 144.4%
1/1/2013 38,940,438 54,682,992 15,742,554 71.2% 8,834,557 178.2%
Annual
Required % of
Plan Contribution Employer ARC
Year ARC Contribution Contributed
2007 1,725,108 866,694 50%
2008 1,325,710 1,807,834 136%
2009 1,901,281 1,005,901 53%
2010 1,892,946 2,100,467 111%
2011 1,706,844 1,345,466 79%
2012 2,334,577 1,241,929 53%
The information presented in the required supplementary schedule was determined as part of the actuarial valuation as of
January 1, 2013. Additional information follows:
Actuarial cost method: Entry Age Normal
Amortization method: 10 years, as a level dollar amount.
Remaining amortization period: 10 years
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 6.8% interest (effective January 1, 2012). The unrecognized
gain or loss 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
expected actuarial value plus the amortization of prior gain or losses 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: 6.8% (including inflation at 2.5%)
Projected pay increases: Ranges from 4.5% at age 30 to 3.6% at age 65+ (including inflation at 2.5%)
SCHEDULE OF FUNDING PROGRESS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Fort Collins Comprehensive Annual Financial Report 89
REQUIRED SUPPLEMENTARY INFORMATION (continued)
Other Postemployment Benefits Plan
Unfunded
Actuarial (Over UAAL as a
Actuarial Accrued funded) Percentage
Fiscal Actuarial Value of Liability AAL Funded Covered of Covered
Year Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Ended Date (a) (b) (b-a) (a/b) (c) [(b-a)/c]
2010 12/31/09 $ - $ 2,319,637 $ 2,319,637 - % $ 69,518,011 3.3%
2011 12/31/11 $ - $ 2,752,549 $ 2,752,549 - % $ 69,682,572 4.0%
2012 12/31/11 $ - $ 2,721,966 $ 2,752,549 - % $ 73,288,492 3.7%
The information presented in the required supplementary schedule was determined as part of the actuarial valuation date
as of December 31, 2011. Additional information follows:
Actuarial cost method: Projected Unit Credit Method
Amortization method: 15 years, as a level dollar amount
Remaining amortization period: 15 years
Asset valuation method: An expected actuarial value is determined equal to a 3.5% discount rate per year. The
medical trend rate beginning in 2012 is 7.2% per year pre and post-Medicare eligible
increasing to 7.6% for 2013 before grading to 4.4% over 86 years from 2013. Trends
for dental and vision benits begin at 5.0% for 2011, grading to 4.4% over 87 years.
The inflation rate assumption is 2.5%.
Discount rate: 3.5%, net of administrative expenses.
Projected pay increases: 0%. The plan was closed to new retirees effective December 31, 2009.
SCHEDULE OF FUNDING PROGRESS
City of Fort Collins Comprehensive Annual Financial Report 91
SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds ............................................................................................................................... 93
Capital Projects Fund Budget Schedule ................................................................................................................. 120
Enterprise Budget Schedules ................................................................................................................................. 123
Internal Service Funds ........................................................................................................................................... 129
Fiduciary Funds ..................................................................................................................................................... 141
Component Unit Statements .................................................................................................................................. 145
92 City of Fort Collins Comprehensive Annual Financial Report
THIS PAGE INTENTIONALLY LEFT BLANK.
City of Fort Collins Comprehensive Annual Financial Report 93
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Special Revenue Funds
Capital Expansion -- to account for capital expansion fees collected by the City and various projects funded by those fees.
Sales and Use Tax -- to account for collections of the City's .25% sales and use tax designated for Natural Areas
and Building on Basics.
Natural Areas -- to account for dedicated financial resources to be used for the acquisition of natural areas and trails. In addition,
some of the fund is used for long-term management of existing natural areas 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.
Recreation -- to account for recreation fees and General Fund subsidies used to provide recreational programs for citizens.
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.
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.
Home Program -- to account for revenues received from the federal government restricted to financing the City's Home Program.
Transit Services -- to account for federal grants and other revenues utilized to operate and maintain the City's bus system.
Street Oversizing -- to account for street oversizing fees used to pay the City's portion of street oversizing costs.
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, a blended component unit.
General Improvement District No. 15 - Skyview -- to account for property taxes and investment earnings used to fund the
maintenance of the Skyview Subdivision street system of the General Improvement District No. 15, a blended component unit.
Timberline/Prospect SID #94 -- to account for assessments used to pay for public improvements
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.
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.
Capital Project Funds
Neighborhood Parkland -- to account for parkland fees used to fund the acquisition, development and administration of
neighborhood park and capital improvements.
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.
94 City of Fort Collins Comprehensive Annual Financial Report
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2012
Special Revenue Funds
Cultural
Capital Sales and Natural Services &
Expansion Use Tax Areas Facilities Recreation
ASSETS
Cash and cash equivalents $ 1,282,717 $ 78,637 $ 861,091 $ 257,539 $ 280,001
Investments 10,572,883 690,110 7,071,767 2,446,277 2,351,186
Receivables
Property taxes - - - - -
Sales and use taxes - 1,318,045 - - -
Accounts 1,732 - - 11,479 140,003
Notes and loans - - - - -
Interest 27,656 8,215 17,976 6,345 5,938
Prepaid item - - - 6,914 -
Advances to other funds 4,834,743 - - - -
Due from other governments - - 294,874 53,420 -
Total Assets 16,719,731 2,095,007 8,245,708 2,781,974 2,777,128
LIABILITIES
Accounts payable, accruals, and other 1,895 1,691 174,172 72,040 143,919
Wages payable - - 52,754 44,712 79,929
Due to other governments - - - - 88
Unearned revenue - - - 648,060 219,482
Deposits held - 67,783 14,508 72,439 -
Total Liabilities 1,895 69,474 241,434 837,251 443,418
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes - - - - -
Unavailable revenue - grants - - - - -
Total Deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT)
Nonspendable - - - 6,914 -
Restricted - 2,010,653 8,004,274 605,425 23,949
Committed 16,717,836 - - 256,825 -
Assigned - 14,880 - 1,075,559 2,309,761
Unassigned - - - - -
Total Fund Balances (Deficit) 16,717,836 2,025,533 8,004,274 1,944,723 2,333,710
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 16,719,731 $ 2,095,007 $ 8,245,708 $ 2,781,974 $ 2,777,128
City of Fort Collins Comprehensive Annual Financial Report 95
Special Revenue Funds (continued)
Perpetual Home Transit Street
Cemeteries Care CDBG Program Services Oversizing
$ 53,348 $ 174,824 $ 43,565 $ 88,850 $ 324,776 $ 868,271
447,235 1,450,677 - 729,454 2,928,142 7,150,862
- - - - - -
- - - - - -
43,855 10,998 - - 204,213 2,455
- - - 125,000 - -
1,220 3,878 - - 8,378 19,847
- - - - - -
- - - - - -
- - 38,477 10,123 145,178 -
545,658 1,640,377 82,042 953,427 3,610,687 8,041,435
4,282 - 1,496 990 196,150 754,119
7,730 - 3,606 1,363 105,838 3,880
- - - - 7,695 -
- - 137,643 350,401 - -
- - - - - -
12,012 - 142,745 352,754 309,683 757,999
- - - - - -
- - - - 17,000 -
- - - - 17,000 -
- - - - - -
- 1,640,377 - 600,673 - -
- - - - - 7,283,436
533,646 - - - 3,284,004 -
- - (60,703) - - -
533,646 1,640,377 (60,703) 600,673 3,284,004 7,283,436
$ 545,658 $ 1,640,377 $ 82,042 $ 953,427 $ 3,610,687 $ 8,041,435
96 City of Fort Collins Comprehensive Annual Financial Report
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (continued)
DECEMBER 31, 2012
Special Revenue Funds (continued)
General General Imp. Timberline/ Total
Improvement District No. 15 Prospect Special
District No. 1 Skyview SID #94 Revenues
ASSETS
Cash and cash equivalents $ 129,381 $ 9,585 $ 7,995 $ 4,460,580
Investments 1,067,592 78,951 65,919 37,051,055
Receivables
Property taxes 271,800 24,662 - 296,462
Sales and use taxes - - - 1,318,045
Accounts - - - 414,735
Notes and loans - - - 125,000
Interest 2,847 244 163 102,707
Prepaid item - - - 6,914
Advances to other funds - - - 4,834,743
Due from other governments 2,282 136 - 544,490
Total Assets 1,473,902 113,578 74,077 49,154,731
LIABILITIES
Accounts payable, accruals, and other 46,753 - 21,338 1,418,845
Wages payable 868 - - 300,680
Due to other governments 86,653 - - 94,436
Unearned revenue - - - 1,355,586
Deposits held - - - 154,730
Total Liabilities 134,274 - 21,338 3,324,277
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 271,800 24,662 - 296,462
Unavailable revenue - grants - - - 17,000
Total Deferred inflows of resources 271,800 24,662 - 313,462
FUND BALANCES (DEFICIT)
Nonspendable - - - 6,914
Restricted - - - 12,885,351
Committed 1,067,828 88,916 - 25,414,841
Assigned - - 52,739 7,270,589
Unassigned - - - (60,703)
Total Fund Balances (Deficit) 1,067,828 88,916 52,739 45,516,992
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 1,473,902 $ 113,578 $ 74,077 $ 49,154,731
City of Fort Collins Comprehensive Annual Financial Report 97
Debt Service Funds C apital Project Funds
Fort Collins Total Total Total
Debt Leasing Debt Neighborhood Conservation Capital Non-major
Service Corporation Service Parkland Trust Project Governmental
$ - $ - $ - $ 566,158 $ 188,208 $ 754,366 $ 5,214,946
- - - 4,684,527 1,554,799 6,239,326 43,290,381
- - - - - - 296,462
- - - - - - 1,318,045
- - - 1,188 - 1,188 415,923
- - - - - - 125,000
- - - 12,526 3,498 16,024 118,731
- - - - - - 6,914
- - - - - - 4,834,743
- - - 16,096 - 16,096 560,586
- - - 5,280,495 1,746,505 7,027,000 56,181,731
- - - 144,947 51,487 196,434 1,615,279
- - - 7,578 5,625 13,203 313,883
- - - - - - 94,436
- - - - - - 1,355,586
- - - - - - 154,730
- - - 152,525 57,112 209,637 3,533,914
- - - - - - 296,462
- - - - - - 17,000
- - - - - - 313,462
- - - - - - 6,914
- - - - 1,689,393 1,689,393 14,574,744
- - - 5,127,970 - 5,127,970 30,542,811
- - - - - - 7,270,589
- - - - - - (60,703)
- - - 5,127,970 1,689,393 6,817,363 52,334,355
$ - $ - $ - $ 5,280,495 $ 1,746,505 $ 7,027,000 $ 56,181,731
98 City of Fort Collins Comprehensive Annual Financial Report
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2012
Special Revenue Funds
Cultural
Capital Sales and Natural Services &
Expansion Use Tax Areas Facilities
REVENUES
Taxes $ - $ 13,276,455 $ - $ -
Intergovernmental - - 3,549,718 103,700
Fees and charges for services 2,523,937 - 22,512 2,153,567
Earnings on investments 266,317 104,994 73,567 27,678
Miscellaneous revenue - 1,532 175,444 117,685
Total Revenues 2,790,254 13,382,981 3,821,241 2,402,630
EXPENDITURES
Current operating
Community and operation 4,217 744,000 4,961,955 3,931,021
Planning, development and transportation - - - -
Sustainability services - 283,723 - -
Other - - - -
Intergovernmental
Fire protection 234,353 - - -
Capital outlay - - 289,296 109,960
Debt service
Principal - - - -
Interest and debt service costs - - - -
Total Expenditures 238,570 1,027,723 5,251,251 4,040,981
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,551,684 12,355,258 (1,430,010) (1,638,351)
OTHER FINANCING SOURCES (USES)
Transfers in - - 6,280,820 1,835,057
Transfers out (420,008) (17,695,820) (1,522,566) (21,200)
Certificates of Participation
COPS issued - - - -
Payments to refunded bond escrow agent - - - -
Sale of capital assets - - 157,482 -
Total Other Financing Sources (Uses) (420,008) (17,695,820) 4,915,736 1,813,857
Net Changes in Fund Balances 2,131,676 (5,340,562) 3,485,726 175,506
Fund Balances-January 1 14,586,160 7,366,095 4,518,548 1,769,217
Fund Balances (Deficit)-December 31 $ 16,717,836 $ 2,025,533 $ 8,004,274 $ 1,944,723
City of Fort Collins Comprehensive Annual Financial Report 99
Special Revenue Funds (continued)
Perpetual Home Transit Street
Recreation Cemeteries Care CDBG Program Services Oversizing
$ - $ - $ - $ - $ - $ - $ -
11,525 - - 1,431,750 1,225,192 3,266,039 -
4,857,224 376,104 49,259 - - 805,456 3,294,063
31,211 6,396 19,668 35 13,750 41,533 83,218
107,412 11,400 - 142,764 85,021 275,477 419,774
5,007,372 393,900 68,927 1,574,549 1,323,963 4,388,505 3,797,055
5,974,312 589,411 407 - - - -
- - - - - 8,492,524 584,094
- - - 1,572,132 1,044,733 - -
- - - - - - -
- - - - - - -
18,346 - - - - 6,945 -
- - - - - - -
- - - - - - -
5,992,658 589,411 407 1,572,132 1,044,733 8,499,469 584,094
(985,286) (195,511) 68,520 2,417 279,230 (4,110,964) 3,212,961
1,156,710 167,857 - - - 5,011,162 378,730
- - (21,819) - - - (1,474,086)
- - - - - - -
- - - - - - -
1,393 - - - - 8,010 -
1,158,103 167,857 (21,819) - - 5,019,172 (1,095,356)
172,817 (27,654) 46,701 2,417 279,230 908,208 2,117,605
2,160,893 561,300 1,593,676 (63,120) 321,443 2,375,796 5,165,831
$ 2,333,710 $ 533,646 $ 1,640,377 $ (60,703) $ 600,673 $ 3,284,004 $ 7,283,436
100 City of Fort Collins Comprehensive Annual Financial Report
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2012
Special Revenue Funds (continued)
General General Imp. Timberline/ Total
Improvement District No. 15 Prospect Special
District No. 1 Skyview SID #94 Revenues
REVENUES
Taxes $ 277,180 $ 24,651 $ - $ 13,578,286
Intergovernmental 28,605 1,701 - 9,618,230
Fees and charges for services - - - 14,082,122
Earnings on investments 14,581 951 498 684,397
Miscellaneous revenue 62 - 20,876 1,357,447
Total Revenues 320,428 27,303 21,374 39,320,482
EXPENDITURES
Current operating
Community and operation - - - 16,205,323
Planning, development and transportation 263,978 492 - 9,341,088
Sustainability services - - - 2,900,588
Other - - 38,943 38,943
Intergovernmental
Fire protection - - - 234,353
Capital outlay - - - 424,547
Debt service
Principal - - - -
Interest and debt service costs - - - -
Total Expenditures 263,978 492 38,943 29,144,842
Excess (Deficiency) of Revenues
Over (Under) Expenditures 56,450 26,811 (17,569) 10,175,640
OTHER FINANCING SOURCES (USES)
Transfers in - - - 14,830,336
Transfers out - - - (21,155,499)
Certificates of Participation
COPS issued - - - -
Payments to refunded bond escrow agent - - - -
Sale of capital assets - - - 166,885
Total Other Financing Sources (Uses) - - - (6,158,278)
Net Changes in Fund Balances 56,450 26,811 (17,569) 4,017,362
Fund Balances-January 1 1,011,378 62,105 70,308 41,499,630
Fund Balances (Deficit)-December 31 $ 1,067,828 $ 88,916 $ 52,739 $ 45,516,992
City of Fort Collins Comprehensive Annual Financial Report 101
Debt Service Funds C apital Project Funds
Fort Collins Total Total Total
Debt Leasing Debt Neighborhood Conservation Capital Non-major
Service Corporation Service Parkland Trust Project Governmental
$ - $ - $ - $ - $ - $ - $ 13,578,286
- - - 16,096 2,030,542 2,046,638 11,664,868
- - - 1,655,835 - 1,655,835 15,737,957
- - - 65,094 18,865 83,959 768,356
- 52,472 52,472 11,990 1,500 13,490 1,423,409
- 52,472 52,472 1,749,015 2,050,907 3,799,922 43,172,876
- - - 437,488 380,734 818,222 17,023,545
- - - - - - 9,341,088
- - - - - - 2,900,588
- 202,481 202,481 - - - 241,424
- - - - - - 234,353
- - - 1,730,014 922,432 2,652,446 3,076,993
340,000 3,212,355 3,552,355 - - - 3,552,355
15,300 1,867,807 1,883,107 - - - 1,883,107
355,300 5,282,643 5,637,943 2,167,502 1,303,166 3,470,668 38,253,453
(355,300) (5,230,171) (5,585,471) (418,487) 747,741 329,254 4,919,423
355,300 5,230,171 5,585,471 - - - 20,415,807
- - - (20,196) (749,147) (769,343) (21,924,842)
- 34,395,000 34,395,000 - - - 34,395,000
- (34,395,000) (34,395,000) - - - (34,395,000)
- - - - - - 166,885
355,300 5,230,171 5,585,471 (20,196) (749,147) (769,343) (1,342,150)
- - - (438,683) (1,406) (440,089) 3,577,273
- - - 5,566,653 1,690,799 7,257,452 48,757,082
$ - $ - $ - $ 5,127,970 $ 1,689,393 $ 6,817,363 $ 52,334,355
102 City of Fort Collins Comprehensive Annual Financial Report
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, 2012
Actual Budget Variance
REVENUES
Fees and charges for services $ 2,523,937 $ 1,640,000 $ 883,937
Earnings on investments 266,317 175,618 90,699
Total Revenues 2,790,254 1,815,618 974,636
EXPENDITURES
Community Parkland Capital 4,217 - (4,217)
Fire Capital Expansion 234,353 234,353 -
Total Expenditures 238,570 234,353 (4,217)
Excess of Revenues
Over Expenditures 2,551,684 1,581,265 970,419
OTHER FINANCING SOURCES (USES)
Proceeds from Advances 247,648 - 247,648
Transfers out:
General Fund (50,000) (50,000) -
Debt Service - COPS (350,000) (350,000) -
Capital Projects Fund (20,008) (151,894) 131,886
Total Other Financing Sources (Uses) (172,360) (551,894) 379,534
Net Change 2,379,324 $ 1,029,371 $ 1,349,953
RECONCILIATION TO GAAP BASIS
Proceeds From Advances (247,648)
Total Reconciling Items (247,648)
Net Change in Fund Balances 2,131,676
Fund Balances--January 1 14,586,160
Fund Balances--December 31 $ 16,717,836
City of Fort Collins Comprehensive Annual Financial Report 103
SALES AND USE TAX FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Taxes $ 13,276,455 $ 12,536,934 $ 739,521
Earnings on investments 104,994 - 104,994
Miscellaneous revenue 1,532 - 1,532
Total Revenues 13,382,981 12,536,934 846,047
EXPENDITURES
Current operating
Community and Operations 744,000 744,000 -
Sustainability 283,723 282,812 (911)
Total Expenditures 1,027,723 1,026,812 (911)
Excess of Revenues
Over Expenditures 12,355,258 11,510,122 845,136
OTHER FINANCING (USES)
Transfers out:
General Fund (6,153,718) (7,334,114) 1,180,396
Natural Areas Fund (6,280,820) (6,280,820) -
Cultural Services & Facilities Fund (224,000) (224,000) -
Cemeteries Fund (7,500) (7,500) -
Transportation Services Fund (66,000) (66,000) -
Capital Projects Fund (4,963,782) (4,963,782) -
Total Other Financing (Uses) (17,695,820) (18,876,216) 1,180,396
Net Change in Fund Balances (5,340,562) $ (7,366,094) $ 2,025,532
Fund Balances--January 1 7,366,095
Fund Balances--December 31 $ 2,025,533
104 City of Fort Collins Comprehensive Annual Financial Report
NATURAL AREAS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Intergovernmental $ 3,549,718 $ 3,124,304 $ 425,414
Fees and charges for services 22,512 23,000 (488)
Earnings on investments 73,567 45,826 27,741
Miscellaneous revenue 175,444 98,920 76,524
Total Revenues 3,821,241 3,292,050 529,191
EXPENDITURES
Land Conservation 470,514 3,951,893 3,481,379
Enforcement 623,350 694,702 71,352
Education 524,375 637,095 112,720
Program Management 605,284 690,264 84,980
Resource Management 1,263,162 1,856,488 593,326
Public Improvements 1,068,681 2,411,932 1,343,251
Facility Operations 189,850 427,431 237,581
Land Management 506,035 533,245 27,210
Total Expenditures 5,251,251 11,203,050 5,951,799
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,430,010) (7,911,000) 6,480,990
OTHER FINANCING SOURCES (USES)
Transfers in:
Sales and Use Tax Fund 6,280,820 5,896,500 384,320
Transfers out:
Debt Service - COPS (1,385,881) (1,385,881) -
Capital Projects Fund (52,637) (63,803) 11,166
Data and Communications Fund (84,048) (84,048) -
Sale of capital assets 157,482 - 157,482
Total Other Financing Sources (Uses) 4,915,736 4,362,768 552,968
Net Change in Fund Balances 3,485,726 $ (3,548,232) $ 7,033,958
Fund Balances--January 1 4,518,548
Fund Balances--December 31 $ 8,004,274
City of Fort Collins Comprehensive Annual Financial Report 105
CULTURAL SERVICES AND FACILITIES FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Intergovernmental $ 103,700 $ 307,194 $ (203,494)
Fees and charges for services 2,153,567 2,297,752 (144,185)
Earnings on investments 27,678 47,613 (19,935)
Miscellaneous revenue 117,685 551,109 (433,424)
Total Revenues 2,402,630 3,203,668 (801,038)
EXPENDITURES
Administration 823,097 856,941 33,844
Lincoln Center 879,758 1,191,401 311,643
Museum 996,923 1,808,747 811,824
Art in Public Places 171,646 401,858 230,212
Performing and visual arts 1,169,557 1,223,350 53,793
Total Expenditures 4,040,981 5,482,297 1,441,316
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,638,351) (2,278,629) 640,278
OTHER FINANCING SOURCES (USES)
Transfers in:
General Fund 1,539,518 1,539,518 -
Neighborhood Parkland 9,000 9,000 -
Conservation Trust Fund 4,400 4,400 -
Transfer S&U Tax - BOB 224,000 224,000 -
Capital Projects Fund 58,139 58,139 -
Transfers out:
Capital Projects Fund (21,200) (21,200) -
Total Other Financing Sources (Uses) 1,813,857 1,813,857 -
Net Change in Fund Balances 175,506 $ (464,772) $ 640,278
Fund Balances--January 1 1,769,217
Fund Balances--December 31 $ 1,944,723
106 City of Fort Collins Comprehensive Annual Financial Report
RECREATION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Intergovernmental $ 11,525 $ 125,471 $ (113,946)
Fees and charges for services 4,857,224 4,973,509 (116,285)
Earnings on investments 31,211 63,516 (32,305)
Miscellaneous revenue 107,412 104,934 2,478
Total Revenues 5,007,372 5,267,430 (260,058)
EXPENDITURES
Recreation administration 2,795,121 3,164,443 369,322
Ice/aquatics programming 1,333,285 1,508,854 175,569
Adult programming 710,734 795,922 85,188
Youth programming 418,415 443,006 24,591
Sports programming 516,199 524,310 8,111
Special reserves 209,277 244,502 35,225
Grants/miscellaneous 9,627 132,971 123,344
Total Expenditures 5,992,658 6,814,008 821,350
Excess (Deficiency) of Revenues
Over (Under) Expenditures (985,286) (1,546,578) 561,292
OTHER FINANCING SOURCES
Transfers in:
General Fund 1,156,710 1,156,710 -
Sale of capital assets 1,393 - 1,393
Total Other Financing Sources 1,158,103 1,156,710 1,393
Net Change in Fund Balances 172,817 $ (389,868) $ 562,685
Fund Balances--January 1 2,160,893
Fund Balances--December 31 $ 2,333,710
City of Fort Collins Comprehensive Annual Financial Report 107
CEMETERIES FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Fees and charges for services $ 376,104 $ 323,000 $ 53,104
Earnings on investments 6,396 10,000 (3,604)
Miscellaneous revenue 11,400 11,900 (500)
Total Revenues 393,900 344,900 49,000
EXPENDITURES
Cemetery services 589,411 641,939 52,528
Total Expenditures 589,411 641,939 52,528
Excess (Deficiency) of Revenues
Over (Under) Expenditures (195,511) (297,039) 101,528
OTHER FINANCING SOURCES
Transfers in:
General Fund 138,539 138,539 -
Perpetual Care Fund 21,818 45,000 (23,182)
Sales & Use Tax - Building on Basics 7,500 7,500 -
Total Other Financing Sources 167,857 191,039 (23,182)
Net Change in Fund Balances (27,654) $ (106,000) $ 78,346
Fund Balances--January 1 561,300
Fund Balances--December 31 $ 533,646
108 City of Fort Collins Comprehensive Annual Financial Report
PERPETUAL CARE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Fees and charges for services $ 49,259 $ 45,000 $ 4,259
Earnings on investments 19,668 45,000 (25,332)
Total Revenues 68,927 90,000 (21,073)
EXPENDITURES
Other 407 407 -
Total Expenditures 407 407 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 68,520 89,593 (21,073)
OTHER FINANCING (USES)
Transfers out:
Cemeteries Fund (21,819) (45,000) 23,181
Total Other Financing (Uses) (21,819) (45,000) 23,181
Net Change in Fund Balances 46,701 $ 44,593 $ 2,108
Fund Balances--January 1 1,593,676
Fund Balances--December 31 $ 1,640,377
City of Fort Collins Comprehensive Annual Financial Report 109
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, 2012
Prior Year Cumulative
Actual Actual Actual Budget Variance
REVENUES
Intergovernmental $ 1,431,750 $ 3,061,443 $ 4,493,193 $ 5,321,021 $ (827,828)
Earnings on investments 35 648 683 82,596 (81,913)
Miscellaneous revenue 142,764 179,070 321,834 808,260 (486,426)
Total Revenues 1,574,549 3,241,161 4,815,710 6,211,877 (1,396,167)
EXPENDITURES
2008-09 Grant 39,308 84,299 123,607 123,607 -
2010-11 Grant 186,127 654,649 840,776 1,041,665 200,889
2011-12 Grant 905,397 32,186 937,583 1,185,505 247,922
2012-13 Grant 441,300 - 441,300 1,073,914 632,614
Total Expenditures 1,572,132 771,134 2,343,266 3,424,691 1,081,425
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,417 2,470,027 2,472,444 2,787,186 (314,742)
Net Change in Fund Balances 2,417 $ 2,470,027 2,472,444 $ 2,787,186 $ (314,742)
Fund Balances (Deficit)--January 1 (63,120) (63,120)
Less Prior Years' Project Revenues (3,241,161)
Plus Prior Years' Project Expenditures 771,134
Fund Balances (Deficit)--December 31 $ (60,703) $ (60,703)
110 City of Fort Collins Comprehensive Annual Financial Report
HOME PROGRAM FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Prior Year Cumulative
Actual Actual Actual Budget Variance
REVENUES
Intergovernmental $ 1,225,192 $ 835,415 $ 2,060,607 $ 3,488,000 $ (1,427,393)
Earnings on investments 13,750 27,500 41,250 - 41,250
Miscellaneous revenue 85,021 281,926 366,947 296,421 70,526
Total Revenues 1,323,963 1,144,841 2,468,804 3,784,421 (1,315,617)
EXPENDITURES
2006-07 Grant 27,028 480,459 507,487 507,487 -
2008-09 Grant - 234,395 234,395 234,395 -
2009-10 Grant 51,481 113,600 165,081 167,900 2,819
2010-11 Grant 267,917 84,943 352,860 445,831 92,971
2011-12 Grant 105,403 37,840 143,243 894,079 750,836
2012-13 Grant 592,904 - 592,904 833,721 240,817
Total Expenditures 1,044,733 951,237 1,995,970 3,083,413 1,087,443
Excess (Deficiency) of Revenues
Over (Under) Expenditures 279,230 193,604 472,834 701,008 (228,174)
Net Change in Fund Balances 279,230 $ 193,604 472,834 $ 701,008 $ (228,174)
Fund Balances--January 1 321,443 321,443
Less Prior Years' Project Revenues (1,144,841)
Plus Prior Years' Project Expenditures 951,237
Fund Balances--December 31 $ 600,673 $ 600,673
City of Fort Collins Comprehensive Annual Financial Report 111
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, 2012
Prior Year Cumulative
Actual Actual Actual Budget Variance
REVENUES
Intergovernmental $ 3,266,039 $ 7,627,396 $ 10,893,435 $ 19,207,432 $ (8,313,997)
Fees and charges for services 805,456 1,174,076 1,979,532 1,923,911 55,621
Earnings on investments 41,533 65,321 106,854 116,395 (9,541)
Miscellaneous revenue 275,477 41,424 316,901 143,673 173,228
Total Revenues 4,388,505 8,908,217 13,296,722 21,391,411 (8,094,689)
EXPENDITURES
FTA Grants
2010 Operating 48,095 1,600,076 1,648,171 2,263,488 615,317
2011 Operating 482,957 7,869,974 8,352,931 8,721,298 368,367
2012 Operating 7,805,033 - 7,805,033 9,460,907 1,655,874
2008 Capital 111,217 1,547,473 1,658,690 1,771,997 113,307
2009 Capital - 618,975 618,975 969,958 350,983
2010 Capital 48,920 2,213,033 2,261,953 3,465,924 1,203,971
2011 Capital - 5,738 5,738 625,000 619,262
2012 Capital 3,247 - 3,247 4,493,381 4,490,134
Total Expenditures 8,499,469 13,855,269 22,354,738 31,771,953 9,417,215
Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,110,964) (4,947,052) (9,058,016) (10,380,542) 1,322,526
OTHER FINANCING SOURCES (USES)
Transfers in:
General Fund 5,011,162 6,332,143 11,343,305 11,343,305 -
Transfers out:
Capital Projects Fund - (152,524) (152,524) (152,525) 1
Sale of capital assets 8,010 - 8,010 - 8,010
Total Other Financing Sources (Uses) 5,019,172 6,179,619 11,198,791 11,190,780 8,011
Net Change in Fund Balances 908,208 $ 1,232,567 2,140,775 $ 810,238 $ 1,330,537
Fund Balances--January 1 2,375,796 2,375,796
Less Prior Years' Project Revenues (15,240,360)
Plus Prior Years' Project Expenditures 14,007,793
Fund Balances--December 31 $ 3,284,004 $ 3,284,004
112 City of Fort Collins Comprehensive Annual Financial Report
STREET OVERSIZING FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Fees and charges for services $ 3,294,063 $ 1,895,000 $ 1,399,063
Earnings on investments 83,218 73,573 9,645
Miscellaneous revenue 419,774 792,510 (372,736)
Total Revenues 3,797,055 2,761,083 1,035,972
EXPENDITURES
Oversizing costs 584,094 2,155,482 1,571,388
Total Expenditures 584,094 2,155,482 1,571,388
Excess of Revenues
Over Expenditures 3,212,961 605,601 2,607,360
OTHER FINANCING SOURCES (USES)
Transfers in:
General Fund 378,730 378,730 -
Transfers out:
Capital Projects Fund (1,474,086) (2,491,957) 1,017,871
Total Other Financing Sources (Uses) (1,095,356) (2,113,227) 1,017,871
Net Change in Fund Balances 2,117,605 $ (1,507,626) $ 3,625,231
Fund Balances--January 1 5,165,831
Fund Balances--December 31 $ 7,283,436
City of Fort Collins Comprehensive Annual Financial Report 113
GENERAL IMPROVEMENT DISTRICT NO. 1 FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Taxes $ 277,180 $ 249,000 $ 28,180
Intergovernmental 28,605 28,000 605
Earnings on investments 14,581 26,179 (11,598)
Miscellaneous revenue 62 - 62
Total Revenues 320,428 303,179 17,249
EXPENDITURES
Other 263,978 931,546 667,568
Total Expenditures 263,978 931,546 667,568
Excess (Deficiency) of Revenues
Over (Under) Expenditures 56,450 (628,367) 684,817
Net Change in Fund Balances 56,450 $ (628,367) $ 684,817
Fund Balances--January 1 1,011,378
Fund Balances--December 31 $ 1,067,828
114 City of Fort Collins Comprehensive Annual Financial Report
GENERAL IMPROVEMENT DISTRICT NO. 15 - SKYVIEW FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Taxes $ 24,651 $ 24,615 $ 36
Intergovernmental 1,701 - 1,701
Earnings on investments 951 - 951
Total Revenues 27,303 24,615 2,688
EXPENDITURES
Other 492 - (492)
Total Expenditures 492 - (492)
Excess of Revenues
Over Expenditures 26,811 24,615 2,196
Net Change in Fund Balances 26,811 $ 24,615 $ 2,196
Fund Balances--January 1 62,105
Fund Balances--December 31 $ 88,916
City of Fort Collins Comprehensive Annual Financial Report 115
TIMBERLINE/PROSPECT SID #94
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Earnings on investments $ 498 $ 518 $ (20)
Miscellaneous revenue 20,876 102,926 (82,050)
Total Revenues 21,374 103,444 (82,070)
EXPENDITURES
Other 38,943 102,926 63,983
Total Expenditures 38,943 102,926 63,983
Excess (Deficiency) of Revenues
Over (Under) Expenditures (17,569) 518 (18,087)
Net Change in Fund Balances (17,569) $ 518 $ (18,087)
Fund Balances--January 1 70,308
Fund Balances--December 31 $ 52,739
116 City of Fort Collins Comprehensive Annual Financial Report
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
EXPENDITURES
Principal $ 340,000 $ 340,000 $ -
Interest 15,300 15,300 -
Total Expenditures 355,300 355,300 -
(Deficiency) of Revenues
(Under) Expenditures (355,300) (355,300) -
OTHER FINANCING SOURCES
Transfers in:
Transportation Fund 355,300 355,300 -
Total Other Financing Sources 355,300 355,300 -
Net Change in Fund Balances - $ - $ -
Fund Balances--January 1 -
Fund Balances--December 31 $ -
City of Fort Collins Comprehensive Annual Financial Report 117
FORT COLLINS LEASING CORPORATION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Miscellaneous revenue $ 52,472 $ 69,688 $ (17,216)
Total Revenues 52,472 69,688 (17,216)
EXPENDITURES
Principal 3,212,355 3,212,355 -
Interest 1,867,807 2,084,876 217,069
Other 202,481 2,500 (199,981)
Total Expenditures 5,282,643 5,299,731 17,088
(Deficiency) of Revenues
(Under) Expenditures (5,230,171) (5,230,043) (128)
OTHER FINANCING SOURCES (USES)
Transfers in:
General Fund 2,609,121 2,608,993 128
Capital Expansion Fund 350,000 350,000 -
Natural Areas Fund 1,385,881 1,385,881 -
Transportation Fund 135,169 135,169 -
Capital Projects Fund 750,000 750,000 -
Proceeds from issuance of long-term debt 34,395,000 - 34,395,000
Proceeds to Escrow Agent (34,395,000) - (34,395,000)
Total Other Financing Sources (Uses) 5,230,171 5,230,043 128
Net Change in Fund Balances - $ - $ -
Fund Balances--January 1 -
Fund Balances--December 31 $ -
118 City of Fort Collins Comprehensive Annual Financial Report
NEIGHBORHOOD PARKLAND FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Prior Year Cumulative
Actual Actual Actual Budget Variance
REVENUES
Intergovernmental $ 16,096 $ 478,223 $ 494,319 $ 428,896 $ 65,423
Fees and charges for services 1,655,835 14,178,272 15,834,107 12,239,876 3,594,231
Earnings on investments 65,094 2,314,371 2,379,465 2,080,725 298,740
Miscellaneous revenue 11,990 279,072 291,062 271,389 19,673
Total Revenues 1,749,015 17,249,938 18,998,953 15,020,886 3,978,067
EXPENDITURES
Waters Way Park 402,695 1,343,905 1,746,600 1,825,364 78,764
New Site Acquisition - 1,960,995 1,960,995 2,003,424 42,429
New Park Site Development 43,880 1,456,461 1,500,341 2,584,788 1,084,447
Lee Martinez Park Addition 24,769 170,381 195,150 439,462 244,312
Huidekoper Park - 154,971 154,971 422,000 267,029
Lilac Park - 140,383 140,383 177,000 36,617
Registry Park 65,569 1,550,908 1,616,477 1,696,700 80,223
Romero - - - 150,000 150,000
Richards Lake 17,784 345,957 363,741 1,330,506 966,765
Staley Neighborhood Park 1,204,518 279,306 1,483,824 1,866,000 382,176
Avery Park Improvements - 39 39 200,000 199,961
Maple Hill Park - 461,198 461,198 676,410 215,212
Rossborough Park Improvements - 3,932 3,932 175,000 171,068
Trailhead Park 10,680 233,342 244,022 827,000 582,978
Golden Meadows Park - 150,588 150,588 350,000 199,412
Soft Gold Neighborhood Park - 21,623 21,623 100,000 78,377
Parkland Administration 383,584 1 383,585 394,891 11,306
Park Equipment Replacement 14,023 - 14,023 15,000 977
Total Expenditures 2,167,502 8,273,990 10,441,492 15,233,545 4,792,053
Excess (Deficiency) of Revenues
Over (Under) Expenditures (418,487) 8,975,948 8,557,461 (212,659) 8,770,120
OTHER FINANCING SOURCES (USES)
Transfers in:
General Fund - 82,162 82,162 82,162 -
Capital Projects Fund - 5,545 5,545 5,545 -
Transfers out:
Cultural Services & Facilities Fund (9,000) (54,800) (63,800) (63,800) -
Capital Projects Fund - (488,220) (488,220) (488,220) -
Data & Communications Fund (11,196) - (11,196) (11,196) -
Total Other Financing Sources (Uses) (20,196) (455,313) (475,509) (475,509) -
Net Change in Fund Balances (438,683) $ 8,520,635 8,081,952 $ (688,168) $ 8,770,120
Fund Balances--January 1 5,566,653 5,566,653
Less Prior Years' Project Revenues (17,337,645)
Plus Prior Years' Project Expenditures 8,817,010
Fund Balances--December 31 $ 5,127,970 $ 5,127,970
City of Fort Collins Comprehensive Annual Financial Report 119
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, 2012
Prior Year Cumulative
Actual Actual Actual Budget Variance
REVENUES
Intergovernmental $ 2,030,542 $ 21,141,878 $ 23,172,420 $ 23,313,124 $ (140,704)
Earnings on investments 18,865 512,428 531,293 777,714 (246,421)
Miscellaneous revenue 1,500 314,899 316,399 356,775 (40,376)
Total Revenues 2,050,907 21,969,205 24,020,112 24,447,613 (427,501)
EXPENDITURES
Trail acquisition/development 737,466 7,707,484 8,444,950 9,769,017 1,324,067
Open space acquisition 1,957 1,103,992 1,105,949 1,162,403 56,454
Fossil Creek Trail 308,432 3,748,940 4,057,372 5,045,021 987,649
Tri-City trails - 677,174 677,174 1,072,541 395,367
Pickle Plant - 15,386 15,386 90,750 75,364
Hughes Stadium Disc Golf Course - 171,555 171,555 135,000 (36,555)
Administration 255,311 - 255,311 253,304 (2,007)
Total Expenditures 1,303,166 13,424,531 14,727,697 17,528,036 2,800,339
Excess of Revenues
Over Expenditures 747,741 8,544,674 9,292,415 6,919,577 2,372,838
OTHER FINANCING SOURCES (USES)
Transfers in:
Capital Projects Fund - 235,000 235,000 235,000 -
Transfers out:
General Fund (730,146) (884,400) (1,614,546) (1,614,546) -
Cultural Services & Facilities Fund (4,400) (104,450) (108,850) (108,850) -
Capital Projects Fund - (1,007,337) (1,007,337) (1,017,618) 10,281
Data and Communications Fund (14,601) - (14,601) (14,601) -
Total Other Financing Sources (Uses) (749,147) (1,761,187) (2,510,334) (2,520,615) 10,281
Net Change in Fund Balances (1,406) $ 6,783,487 6,782,081 $ 4,398,962 $ 2,383,119
Fund Balances--January 1 1,690,799 1,690,799
Less Prior Years' Project Revenues (22,204,205)
Plus Prior Years' Project Expenditures 15,420,718
Fund Balances--December 31 $ 1,689,393 $ 1,689,393
**Conservation Trust Funds (lottery proceeds only) fund balance $1,717,130
120 City of Fort Collins Comprehensive Annual Financial Report
blank
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.
City of Fort Collins Comprehensive Annual Financial Report 121
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, 2012
Current Prior
Year Year Cumulative
Actual Actual Actual Budget Variance
REVENUES
Intergovernmental $ 23,279,223 $ 15,887,051 $ 39,166,274 $ 103,723,630 $ (64,557,356)
Earnings on investments 224,165 10,213,894 10,438,059 5,981,533 4,456,526
Miscellaneous revenue 749,845 7,681,775 8,431,620 9,536,709 (1,105,089)
Total Revenues 24,253,233 33,782,720 58,035,953 119,241,872 (61,205,919)
EXPENDITURES
DOE - RDSI Project (ARRA) - 152,482 152,482 241,797 89,315
FC Museum / DSC Fac Design 1,252,330 14,907,541 16,159,871 16,296,470 136,599
BOB-Lincoln Center Renovation 113,118 7,972,232 8,085,350 8,062,225 (23,125)
Police Facility 3,206,280 1,955,194 5,161,474 5,323,825 162,351
Env Site Mitigation - 112 E. Willow - 183,019 183,019 200,000 16,981
Block 32 Redevelopment 4,123 41,521 45,644 195,000 149,356
New Branch Library-Beyer Site 60,000 5,214,161 5,274,161 5,544,000 269,839
NA Office Building 24,813 - 24,813 - (24,813)
Soapstone Public Improvement 52,637 4,830,406 4,883,043 4,883,044 1
Coventry Dev Wildlife Habitat - - - 9,000 9,000
Regional Trails 267,537 1,550,900 1,818,437 1,988,718 170,281
Southeast Community Park 20,008 3,598,133 3,618,141 3,750,026 131,885
Spring Canyon-Veteran's Plaza 59,038 262,634 321,672 335,000 13,328
Water Craft Course - 36,342 36,342 150,000 113,658
BOB-Park Upgrades/Enhancements 163,458 135,782 299,240 304,897 5,657
BOB-Senior Center Expansion 7,406 - 7,406 425,937 418,531
Prospect, Poudre River/Summitview 2,367 6,260,423 6,262,790 6,568,801 306,011
Street Oversizing Projects 1,467,997 9,514,852 10,982,849 12,226,165 1,243,316
BOB Int Imp & Traffic Signals 913,195 4,462,657 5,375,852 12,196,189 6,820,337
I-25 & SH 392 Interchange 1,401,736 2,788,697 4,190,433 4,639,593 449,160
City Bridge Program 1,571,738 3,055,826 4,627,564 7,705,161 3,077,597
Rairoad Crossing Replacement 105,499 126,092 231,591 519,903 288,312
Harmony/UPRR Safey & Maintenance 11,925 - 11,925 575,000 563,075
Mason Street Transportation Corridor 15,343,767 22,363,564 37,707,331 95,901,607 58,194,276
Pedestrian Plan (BCC) 2,663 95,054 97,717 97,775 58
BOB Ped Plan & ADA Improvements 318,255 1,698,525 2,016,780 3,254,716 1,237,936
Bicycle Plan Implementation 48,834 - 48,834 405,000 356,166
N. College Improvements-Vine/Conifer 6,067,895 2,725,571 8,793,466 11,215,464 2,421,998
N. College Improvements-Conifer/Willox 103,338 - 103,338 1,426,000 1,322,662
Administrative Charges 35,961 - 35,961 35,961 -
Total Expenditures 32,625,918 93,931,608 126,557,526 204,477,274 77,919,748
Excess (Deficiency) of Revenues
Over (Under) Expenditures (8,372,685) (60,148,888) (68,521,573) (85,235,402) 16,713,829
(Continued on Next Page)
122 City of Fort Collins Comprehensive Annual Financial Report
CAPITAL PROJECTS FUND (Continued)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Current Prior
Year Year Cumulative
Actual Actual Actual Budget Variance
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of long term
debt $ - $ 1,897,805 $ 1,897,805 $ 1,897,805 $ -
Transfers in
General Fund 93,000 6,496,838 6,589,838 8,342,549 (1,752,711)
Capital Expansion Fund 20,008 8,577,746 8,597,754 8,729,639 (131,885)
Sales and Use Tax Fund 4,963,781 49,237,099 54,200,880 53,190,964 1,009,916
Natural Areas Fund 52,637 5,743,733 5,796,370 5,796,370 -
Cultural Services & Facilities Fund 21,200 350,000 371,200 471,200 (100,000)
Transit Services Fund - 116,525 116,525 116,525 -
Street Oversizing Fund 1,474,086 3,566,251 5,040,337 6,058,208 (1,017,871)
Transportation Services Fund 151,606 1,131,642 1,283,248 1,785,000 (501,752)
URA Operations & Maintenance Fund 2,700,000 1,548,079 4,248,079 4,318,079 (70,000)
Transfers out
Cultural Services and Facilities Fund (58,139) (462,798) (520,937) (520,937) -
Debt Service Fund-Ft Collins Leasing (750,000) (1,500,000) (2,250,000) (2,250,000) -
Total Other Financing Sources (Uses) 8,668,179 76,702,920 85,371,099 87,935,402 (2,564,303)
Net Changes in Fund Balance 295,494 $ 16,554,032 16,849,526 $ 2,700,000 $ 14,149,526
Fund Balances--January 1 20,109,186 20,109,186
Less Prior Years' Project Revenues (112,448,438)
Plus Prior Years' Project Expenditures 95,894,406
Fund Balances--December 31 $ 20,404,680 $ 20,404,680
City of Fort Collins Comprehensive Annual Financial Report 123
blank
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 drainage utility.
Golf -- to account for operations of all City golf courses.
124 City of Fort Collins Comprehensive Annual Financial Report
LIGHT AND POWER FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 108,634,479 $ 106,693,911 $ 1,940,568
Intergovermental 5,564,701 241,849 5,322,852
Other nonoperating income 1,334,800 1,259,979 74,821
Earnings on investments 566,783 752,150 (185,367)
Gain on sale of capital assets 194,540 - 194,540
Contributed capital 3,414,650 1,906,816 1,507,834
Total Revenues 119,709,953 110,854,705 8,855,248
EXPENSES
Programs (fund level of budgetary control)
Customer and administrative services 4,272,291 5,477,296 1,205,005
System additions 8,814,033 9,573,425 759,392
Light and Power operations 7,537,528 7,337,448 (200,080)
Payments and transfers 9,691,390 9,734,136 42,746
Purchase of power 76,283,258 78,051,087 1,767,829
Energy services 3,546,448 5,946,946 2,400,498
Total Programs 110,144,948 116,120,338 5,975,390
Projects (project level of budgetary control)
Substation Improvements 6,298,401 8,388,148 2,089,747
Smart Grid 18,148,045 34,890,127 16,742,082
SW Enclave System Purchases 1,598,080 2,664,354 1,066,274
Underground Conversion Program 41,680 1,800,249 1,758,569
Grants 6,548,821 6,524,181 (24,640)
Service Center Additions 115,775 4,619,563 4,503,788
Mason Corridor 969,069 1,020,000 50,931
Total Projects 33,719,871 59,906,622 26,186,751
Total Expenses 143,864,819 176,026,960 32,162,141
Excess (deficiency) of revenues over (under)
expenses before reconciling items (24,154,866) $ (65,172,255) $ 41,017,389
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 8,814,033
Current Year's Project Expenses 13,431,473
Prior Years' Project Expenses 19,241,582
Principal Reduction--Long-Term Debt 1,455,000
Depreciation (7,739,320)
Bond Amortization 60,804
Total Reconciling Items 35,263,572
Change in net position 11,108,706
Net Position--January 1, as restated 166,578,985
Net Position--December 31 $ 177,687,691
City of Fort Collins Comprehensive Annual Financial Report 125
WATER FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 28,325,535 $ 26,748,036 $ 1,577,499
Other nonoperating income 274,336 208,828 65,508
Earnings on investments 952,937 1,430,558 (477,621)
Gain on sale of capital assets 42,400 - 42,400
Contributed capital 3,448,556 1,948,015 1,500,541
Proceeds from issuance of long term debt 116,017 - 116,017
Total Revenues 33,159,781 30,335,437 2,824,344
EXPENSES
Programs (fund level of budgetary control)
Customer and administrative services 4,060,707 5,068,831 1,008,124
Payments and transfers 7,848,175 8,254,422 406,247
Transmission and distribution 2,268,016 2,910,675 642,659
Water engineering 98,211 99,111 900
Water production 7,089,429 11,063,664 3,974,235
Water quality 1,053,459 1,212,973 159,514
Water resources 2,042,049 2,456,540 414,491
Total Programs 24,460,046 31,066,216 6,606,170
Projects (project level of budgetary control)
Advanced Metering Infrastructure 3,096,099 4,181,000 1,084,901
Asset Management 24,139 171,666 147,527
Cathodic Protection 845,651 905,000 59,349
Distribution System Replacement 1,795,277 2,330,714 535,437
Engineering Distrubution Sys Replcmnt 4,671,185 6,267,639 1,596,454
Gravel Pit Storage Ponds 509,145 11,577,000 11,067,855
Halligan Reservoir Enlargement 10,796,716 36,997,446 26,200,730
Master Plan Facilities 7,076,437 7,212,072 135,635
Meter Conversion Program 29,403 1,319,000 1,289,597
Michigan Ditch improvements 786,730 800,000 13,270
Poudre Pipeline 1,026,144 1,000,000 (26,144)
Service Center Improvements 971,870 1,343,297 371,427
Source of Supply Gen Replcmnt 43,566 146,748 103,182
Southwest System Improvements 1,002,486 1,486,528 484,042
Treatment Facility Improvement 796,838 997,013 200,175
Water Production Replcmnt Program 3,561,120 6,897,830 3,336,710
Water Supply Development 1,441,795 2,382,203 940,408
Total Projects 38,474,601 86,015,156 47,540,555
Total Expenses 62,934,647 117,081,372 54,146,725
Excess (deficiency) of revenues over (under)
expenses before reconciling items (29,774,866) $ (86,745,935) $ 56,971,069
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 985,887
Current Year's Project Expenses 7,682,085
Prior Years' Project Expenses 31,437,486
Principal Reduction--Long-Term Debt 2,854,200
Proceeds From Advances (116,017)
Depreciation (5,374,854)
Bond Amortization 17,100
Total Reconciling Items 37,485,887
Change in net position 7,711,021
Net Position--January 1, as restated 252,621,901
Net Position--December 31 $ 260,332,922
126 City of Fort Collins Comprehensive Annual Financial Report
WASTEWATER FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 20,809,026 $ 19,688,503 $ 1,120,523
Other nonoperating income 78,800 76,957 1,843
Earnings on investments 468,178 1,059,353 (591,175)
Gain on sale of capital assets 19,026 - 19,026
Contributed capital 2,119,535 1,775,104 344,431
Total Revenues 23,494,565 22,599,917 894,648
EXPENSES
Programs (fund level of budgetary control)
Customer and administrative services 1,642,200 2,105,385 463,185
Payments and transfers 6,837,176 7,655,900 818,724
Pollution control 1,106,328 1,255,477 149,149
Trunk and collection 1,603,603 1,932,682 329,079
Water engineering 98,794 103,088 4,294
Water reclamation 5,029,748 5,532,658 502,910
Total Programs 16,317,849 18,585,190 2,267,341
Projects (project level of budgetary control)
Asset Management 24,139 171,668 147,529
Collection System Replacement 3,799,923 10,173,097 6,373,174
Collection System Study 850,875 970,000 119,125
Flow Monitoring Stations 995,595 1,015,000 19,405
Mulberry Water Reclamation Improvement 35,975,613 36,784,863 809,250
Service Center Improvements 2,079,527 2,579,139 499,612
Sludge Disposal Improvements 5,706,018 6,443,943 737,925
Treatment Plant Expansion 35,296,390 35,802,161 505,771
Water Reclamation Replacement Program 5,701,234 8,397,128 2,695,894
Total Projects 90,429,314 102,336,999 11,907,685
Total Expenses 106,747,163 120,922,189 14,175,026
Excess (deficiency) of revenues over (under)
expenses before reconciling items (83,252,598) $ (98,322,272) $ 15,069,674
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 232,986
Current Year's Project Expenses 9,478,047
Prior Years' Project Expenses 80,951,267
Principal Reduction--Long-Term Debt 3,098,674
Depreciation (4,627,661)
Bond Amortization 25,068
Total Reconciling Items 89,158,381
Change in net position 5,905,783
Net Position--January 1 , as restated 137,396,633
Net Position--December 31 $ 143,302,416
City of Fort Collins Comprehensive Annual Financial Report 127
STORM DRAINAGE FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 14,051,297 $ 13,907,929 $ 143,368
Other nonoperating income 519,832 559,636 (39,804)
Earnings on investments 183,526 270,283 (86,757)
Gain on sale of capital assets 26,199 - 26,199
Contributed capital 948,125 171,624 776,501
Total Revenues 15,728,979 14,909,472 819,507
EXPENSES
Programs (fund level of budgetary control)
Customer and administrative services 1,843,573 2,363,555 519,982
Drainage and detention 1,481,590 2,042,074 560,484
Storm drainage engineering 1,321,649 1,386,835 65,186
Payments and transfers 4,761,729 5,065,532 303,803
Total Programs 9,408,541 10,857,996 1,449,455
Projects (project level of budgetary control)
Drainage System Replacement 827,753 1,286,836 459,083
Old Town Basin 606,880 736,890 130,010
McClelland Mail Creek Basin 4,140 4,140 -
Spring Creek Basin 31,251 736,432 705,181
Dry Creek Basin 443,089 1,680,475 1,237,386
West Vine Channel 1,288,845 2,486,913 1,198,068
Foothills Basin 3,950 8,728 4,778
Canal Importation 20,264,912 21,282,504 1,017,592
Cooper Slough 715,385 1,601,254 885,869
Fossil Creek 70,972 317,075 246,103
Cache La Poudre Drainageway 583,255 1,690,524 1,107,269
Utility Service Center 182,700 475,610 292,910
Master Planning 4,824,126 4,951,990 127,864
Flood Mapping 469,023 581,913 112,890
Developer Repays 1,550,963 2,101,870 550,907
Total Projects 31,867,244 39,943,154 8,075,910
Total Expenses 41,275,785 50,801,150 9,525,365
Excess (deficiency) of revenues over (under)
expenses before reconciling items (25,546,806) $ (35,891,678) $ 10,344,872
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 73,749
Current Year's Project Expenses 2,923,561
Prior Years' Project Expenses 28,943,682
Principal Reduction--Long-Term Debt 2,965,000
Depreciation (2,200,737)
Bond Amortization (68,892)
Total Reconciling Items 32,636,363
Change in net position 7,089,557
Net Position--January 1, as restated 89,864,762
Net Position--December 31 $ 96,954,319
128 City of Fort Collins Comprehensive Annual Financial Report
GOLF FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 3,076,851 $ 2,958,000 $ 118,851
Other nonoperating income 32,253 10,000 22,253
Earnings on investments 6,968 40,000 (33,032)
Gain on sale of capital assets 1,582 - 1,582
Total Revenues 3,195,036 3,085,382 109,654
EXPENSES
Programs (fund level of budgetary control)
Golf courses 2,916,785 3,052,702 135,917
Transfers 43,806 43,806 -
Total Programs 2,960,591 3,096,508 135,917
Total Expenses 2,960,591 3,096,508 135,917
Excess (deficiency) of revenues over (under)
expenses before reconciling items 234,445 $ (11,126) $ 245,571
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 55,228
Principal Reduction--Long-Term Debt 274,979
Principal Reduction--Capital Lease Obligations 114,683
Proceeds From Lease Purchases (77,382)
Depreciation (272,458)
Bond Amortization (3,096)
Total Reconciling Items 91,954
Change in net position 326,399
Net Position--January 1, as restated 4,763,432
Net Position--December 31 $ 5,089,831
City of Fort Collins Comprehensive Annual Financial Report 129
INTERNAL SERVICE FUNDS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
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.
Data and Communications -- to account for the acquisition, operation, and maintenance of the City's telephone
system, office automation system, and network backbone, as well as computer application services.
Benefits -- to account for the self-insurance of employee health care benefits and other benefits provided to
City employees.
Utility Customer Service and Administration -- to account for customer and administrative services
provided to the City's utility funds.
130 City of Fort Collins Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
DECEMBER 31, 2012
Data and
Equipment Self Insurance Communications
ASSETS
Current Assets
Cash and cash equivalents $ 194,452 $ 2,923,360 $ 334,408
Investments 1,603,338 4,330,974 2,758,126
Receivables
Accounts 121,222 34,215 2,731
Note receivable from other fund - - -
Interest 3,498 11,306 7,483
Prepaid item - 213,360 -
Due from other governments - - 8,246
Inventories of materials and supplies 579,355 - -
Total Current Assets 2,501,865 7,513,215 3,110,994
Non-Current Assets
Restricted - cash and cash equivalents 93,578 - 4
Land, water rights, other 30,126 - -
Buildings, improvements and equipment 10,037,436 - 3,986,291
Accumulated depreciation (6,504,749) - (2,953,788)
Total Non-Current Assets 3,656,391 - 1,032,507
Total Assets 6,158,256 7,513,215 4,143,501
LIABILITIES
Current Liabilities
Accounts payable 236,392 18,822 425,115
Interest payable 3,370 - 1,818
Wages payable 58,404 8,825 84,725
Compensated absences 132,906 29,301 340,306
Claims payable - 1,037,656 -
Capital lease obligations 341,294 - 216,628
Unearned revenue - 1,745 -
Total Current Liabilities 772,366 1,096,349 1,068,592
Non-Current Liabilities
Claims payable - 2,963,183 -
Capital lease obligations 1,069,178 - 754,568
Total Non-Current Liabilities 1,069,178 2,963,183 754,568
Total Liabilities 1,841,544 4,059,532 1,823,160
NET POSITION
Net investment in capital assets 2,152,341 - 1,032,503
Restricted: fiscal agent 93,578 - 4
Unrestricted 2,070,793 3,453,683 1,287,834
Total Net Position $ 4,316,712 $ 3,453,683 $ 2,320,341
City of Fort Collins Comprehensive Annual Financial Report 131
Utility Customer
Benefits Service and Admin. Total
$ 2,111,033 $ 473,059 $ 6,036,312
11,800,356 2,962,637 23,455,431
517,434 1,250 676,852
- - -
31,641 8,297 62,225
- - 213,360
- - 8,246
- - 579,355
14,460,464 3,445,243 31,031,781
- - 93,582
- - 30,126
- 3,360,126 17,383,853
- (2,669,505) (12,128,042)
- 690,621 5,379,519
14,460,464 4,135,864 36,411,300
563,513 140,107 1,383,949
- - 5,188
13,048 158,086 323,088
37,195 361,925 901,633
1,260,275 - 2,297,931
- - 557,922
- - 1,745
1,874,031 660,118 5,471,456
- - 2,963,183
- - 1,823,746
- - 4,786,929
1,874,031 660,118 10,258,385
- 690,621 3,875,465
- - 93,582
12,586,433 2,785,125 22,183,868
$ 12,586,433 $ 3,475,746 $ 26,152,915
132 City of Fort Collins Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2012
Data and
Equipment Self Insurance Communications
OPERATING REVENUES
Charges for services $ 8,309,008 $ 3,045,466 $ 2,085,619
Total Operating Revenues 8,309,008 3,045,466 2,085,619
OPERATING EXPENSES
Personal services 2,638,761 394,262 3,753,911
Contractual services 1,372,211 1,699,725 1,999,639
Commodities 4,051,687 106,862 2,720,965
Other 191,926 - 1,142
Depreciation 751,078 - 335,619
Total Operating Expenses 9,005,663 2,200,849 8,811,276
Operating Income (Loss) (696,655) 844,617 (6,725,657)
NONOPERATING REVENUES (EXPENSES)
Earnings on investments 15,828 49,470 35,202
Other revenue 65,573 9,989 634
Gain (Loss) on sale of capital assets 84,074 - -
Interest expense (27,276) - (11,689)
Total Nonoperating Revenues (Expenses) 138,199 59,459 24,147
Income (Loss) Before Transfers (558,456) 904,076 (6,701,510)
Transfers in 336,807 - 5,901,399
Transfers out - - -
Change in Net Position (221,649) 904,076 (800,111)
Net Position--January 1 4,538,361 2,549,607 3,120,452
Net Position--December 31 $ 4,316,712 $ 3,453,683 $ 2,320,341
City of Fort Collins Comprehensive Annual Financial Report 133
Utility Customer
Benefits Service and Admin. Total
$ 20,571,295 $ 11,001,937 $ 45,013,325
20,571,295 11,001,937 45,013,325
590,685 7,052,519 14,430,138
19,506,956 3,189,068 27,767,599
19,466 476,431 7,375,411
62 186,636 379,766
- 404,968 1,491,665
20,117,169 11,309,622 51,444,579
454,126 (307,685) (6,431,254)
143,216 48,952 292,668
40,000 1,077,071 1,193,267
- - 84,074
- - (38,965)
183,216 1,126,023 1,531,044
637,342 818,338 (4,900,210)
- - 6,238,206
- (1,725,186) (1,725,186)
637,342 (906,848) (387,190)
11,949,091 4,382,594 26,540,105
$ 12,586,433 $ 3,475,746 $ 26,152,915
134 City of Fort Collins Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2012
Data and
Equipment Self Insurance Communications
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from interfund services provided $ 8,240,468 $ 3,039,509 $ 2,080,269
Cash paid to employees for services (2,639,344) (390,838) (3,701,794)
Cash paid to other suppliers of goods & services (5,428,385) (2,161,706) (5,085,973)
Payments for interfund services used (104,354) (203) (2,869)
Other receipts 65,573 9,989 634
Net cash provided (used) by operating activities 133,958 496,751 (6,709,733)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 336,807 - 5,901,399
Transfers to other funds - - -
Net cash provided (used) by noncapital
financing activities 336,807 - 5,901,399
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from capital debt 684,000 - 413,585
Purchases of capital assets (1,116,756) - (187,124)
Principal paid on capital debt (334,616) - (145,644)
Interest paid on capital debt (30,755) - (16,618)
Proceeds from sales of capital assets 84,074 - -
Net cash provided (used) by capital
and related financing activities (714,053) - 64,199
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sales and maturities of investments 3,035 (373,315) 217,953
Purchase of investments (260,977) - -
Earnings received on investments 16,802 54,809 38,646
Net cash provided (used) by
investing activities (241,140) (318,506) 256,599
Net increase (decrease) in cash and cash equivalents (484,428) 178,245 (487,536)
Cash and cash equivalents, January 1 772,458 2,745,115 821,948
Cash and cash equivalents, December 31 $ 288,030 $ 2,923,360 $ 334,412
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) $ (696,655) $ 844,617 $ (6,725,657)
Other receipts 65,573 9,989 634
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation expense 751,078 - 335,619
(Increase) decrease in accounts receivable (68,540) (6,160) 27
(Increase) decrease in intergovernmental receivables 10,563 - (8,246)
(Increase) in inventories (15,799) - -
(Decrease) in prepaid item - (34,762) -
Increase (decrease) in accounts payable 88,321 (621) (364,227)
Increase (decrease) in compensated absences payable (9,338) 1,861 32,421
Increase in wages payable 8,755 1,563 19,696
Increase (decrease) in claims payable - (316,266) -
(Decrease) in deferred revenue - (3,470) -
Net cash provided (used) by operating activities $ 133,958 $ 496,751 $ (6,709,733)
Reconciliation of cash and cash equivalents to
statement of net position:
Cash and cash equivalents 194,452 2,923,360 334,408
Restricted Assets - cash and cash equivalents 93,578 - 4
City of Fort Collins Comprehensive Annual Financial Report 135
Utility Customer
Benefits Service and Admin. Total
$ 20,496,536 $ 11,000,687 $ 44,857,469
(586,226) (7,009,655) (14,327,857)
(19,320,639) (3,941,565) (35,938,268)
(523) (124,137) (232,086)
40,000 1,077,071 1,193,267
629,148 1,002,401 (4,447,475)
- - 6,238,206
- (1,725,186) (1,725,186)
- (1,725,186) 4,513,020
- - 1,097,585
- - (1,303,880)
- - (480,260)
- - (47,373)
- - 84,074
- - (649,854)
- 761,752 609,425
(729,754) - (990,731)
159,095 49,345 318,697
(570,659) 811,097 (62,609)
58,489 88,312 (646,918)
2,052,544 384,747 6,776,812
$ 2,111,033 $ 473,059 $ 6,129,894
$ 454,126 $ (307,685) $ (6,431,254)
40,000 1,077,071 1,193,267
- 404,968 1,491,665
(75,282) (1,250) (151,205)
- - 2,317
- - (15,799)
- - (34,762)
183,156 (213,567) (306,938)
1,961 15,383 42,288
2,498 27,481 59,993
22,689 - (293,577)
- - (3,470)
$ 629,148 $ 1,002,401 $ (4,447,475)
2,111,033 473,059 6,036,312
- - 93,582
$ 2,111,033 $ 473,059 $ 6,129,894
136 City of Fort Collins Comprehensive Annual Financial Report
EQUIPMENT FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 8,309,008 $ 9,509,656 $ (1,200,648)
Other nonoperating income 65,573 50,500 15,073
Earnings on investments 15,828 44,530 (28,702)
Transfers 336,807 336,807 -
Gain on sale of capital assets 84,074 5,000 79,074
Proceeds from issuance of long term debt 684,000 684,000 -
Total Revenues 9,495,290 10,630,493 (1,135,203)
EXPENSES
Programs (fund level of budgetary control)
Fleet services 9,733,233 11,255,092 1,521,859
Total Programs 9,733,233 11,255,092 1,521,859
Total Expenses 9,733,233 11,255,092 1,521,859
Excess (deficiency) of revenues over (under)
expenses before reconciling items (237,943) $ (624,599) $ 386,656
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 1,116,756
Principal Reduction--Capital Lease Obligations 334,616
Proceeds From Lease Purchases (684,000)
Depreciation (751,078)
Total Reconciling Items 16,294
Change in net position (221,649)
Net Position--January 1 4,538,361
Net Position--December 31 $ 4,316,712
City of Fort Collins Comprehensive Annual Financial Report 137
SELF INSURANCE FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 3,045,466 $ 3,063,815 $ (18,349)
Other nonoperating income 9,989 - 9,989
Earnings on investments 49,470 153,964 (104,494)
Total Revenues 3,104,925 3,217,779 (112,854)
EXPENSES
Programs (fund level of budgetary control)
Risk Management 411,828 509,555 97,727
Property & Liability Insurance 1,063,414 1,432,392 368,978
Workers Compensation 627,749 1,215,519 587,770
Risk Management Environmental 97,858 120,031 22,173
Total Expenses 2,200,849 3,277,497 1,076,648
Change in net position 904,076 $ (59,718) $ 963,794
Net Position--January 1 2,549,607
Net Position--December 31 $ 3,453,683
138 City of Fort Collins Comprehensive Annual Financial Report
DATA AND COMMUNICATIONS FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 2,085,619 $ 1,346,610 $ 739,009
Other nonoperating income 634 - 634
Earnings on investments 35,202 79,874 (44,672)
Transfers 5,901,399 5,901,399 -
Proceeds from issuance of long term debt 413,585 413,585 -
Total Revenues 8,436,439 7,741,468 694,971
EXPENSES
Programs (fund level of budgetary control)
Management of Information Services 8,820,114 9,389,081 568,967
Total Programs 8,820,114 9,389,081 568,967
Total Expenses 8,820,114 9,389,081 568,967
Excess (deficiency) of revenues over (under)
expenses before reconciling items (383,675) $ (1,647,613) $ 1,263,938
RECONCILIATION TO GAAP BASIS
Capital Outlay--Programs 187,124
Principal Reduction--Capital Lease Obligations 145,644
Proceeds From Lease Purchases (413,585)
Depreciation (335,619)
Total Reconciling Items (416,436)
Change in net position (800,111)
Net Position--January 1 3,120,452
Net Position--December 31 $ 2,320,341
City of Fort Collins Comprehensive Annual Financial Report 139
BENEFITS FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 20,571,295 $ 21,691,000 $ (1,119,705)
Other nonoperating income 40,000 40,000 -
Earnings on investments 143,216 235,819 (92,603)
Total Revenues 20,754,511 21,966,819 (1,212,308)
EXPENSES
Programs (fund level of budgetary control)
Benefits 20,117,169 23,022,153 2,904,984
Total Expenses 20,117,169 23,022,153 2,904,984
Change in net position 637,342 $ (1,055,334) $ 1,692,676
Net Position--January 1 11,949,091
Net Position--December 31 $ 12,586,433
140 City of Fort Collins Comprehensive Annual Financial Report
UTILITY CUSTOMER SERVICE AND ADMINISTRATIVE FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS)
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Charges for services $ 11,001,937 $ 14,105,047 $ (3,103,110)
Other nonoperating income 1,077,071 930,993 146,078
Earnings on investments 48,952 59,528 (10,576)
Total Revenues 12,127,960 15,095,568 (2,967,608)
EXPENSES
Programs (fund level of budgetary control)
Customer and administrative services 10,904,654 14,788,974 3,884,320
Transfers 1,725,186 1,725,186 -
Total Programs 12,629,840 16,514,160 3,884,320
Total Expenses 12,629,840 16,514,160 3,884,320
Excess (deficiency) of revenues over (under)
expenses before reconciling items (501,880) $ (1,418,592) $ 916,712
RECONCILIATION TO GAAP BASIS
Depreciation (404,968)
Total Reconciling Items (404,968)
Change in net position (906,848)
Net Position--January 1 4,382,594
Net Position--December 31 $ 3,475,746
City of Fort Collins Comprehensive Annual Financial Report 141
FIDUCIARY FUNDS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Trust Funds:
General Employees' Retirement Plan -- to account for the general employees' retirement plan.
Closed to new hires as of 1/1/1999.
Agency Funds:
Poudre Fire Authority -- to account for cash and investments held by the City on behalf of Poudre Fire Authority
Poudre River Public Library District -- to account for cash and investments held by the City on behalf
of Poudre River Public Library District.
142 City of Fort Collins Comprehensive Annual Financial Report
GENERAL EMPLOYEES' RETIREMENT PLAN TRUST FUND
SCHEDULE OF CHANGES IN NET POSITION HELD IN TRUST FOR
PENSION BENEFITS - ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
OPERATING REVENUES
Contributions $ 1,241,929 $ 1,300,000 $ (58,071)
Earnings on investments 236,043 468,000 (231,957)
Net decrease in the fair value of investments 3,989,900 - 3,989,900
Total Operating Revenues 5,467,872 1,768,000 3,699,872
OPERATING EXPENSES
Benefit payments 2,970,386 3,050,000 79,614
Administration 23,801 26,808 3,007
Total Operating Expenses 2,994,187 3,076,808 82,621
Changes in Net Position 2,473,685 $ (1,308,808) $ 3,782,493
Net Position Held in Trust for Pension
Benefits--January 1 37,015,380
Net Position Held in Trust for Pension
Benefits--December 31 $ 39,489,065
City of Fort Collins Comprehensive Annual Financial Report 143
AGENCY FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2012
Poudre River
Poudre Public Total
Fire Library Agency
Authority District Funds
ASSETS
Current Assets
Cash and cash equivalents $ 1,137,858 $ 551,827 $ 1,689,685
Receivables
Interest 23,840 12,690 36,530
Investments, at fair value
Certificates of deposit 594,439 289,161 883,600
U S Government securities 7,672,354 3,747,480 11,419,834
Corporate bonds 1,084,892 529,975 1,614,867
Total Investments, at fair value 9,351,685 4,566,616 13,918,301
Total Assets 10,513,383 5,131,133 15,644,516
LIABILITIES
Current Liabilities
Amounts held for other governments 10,513,383 5,131,133 15,644,516
Total Liabilities $ 10,513,383 $ 5,131,133 $ 15,644,516
144 City of Fort Collins Comprehensive Annual Financial Report
AGENCY FUNDS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2012
POUDRE FIRE AUTHORITY Balance-- Balance--
Dec. 31, 2011 Additions Deletions Dec. 31, 2012
ASSETS
Cash and cash equivalents $ 691,092 $ 35,806,622 $ 35,359,856 $ 1,137,858
Receivables - interest 34,568 - 10,728 23,840
Investments, at fair value
Certificates of deposit 639,010 35,951 80,522 594,439
U S Government securities 6,810,579 978,430 116,655 7,672,354
Corporate bonds 733,127 351,765 - 1,084,892
Total Investments, at fair value 8,182,716 1,366,146 197,177 9,351,685
Total Assets 8,908,376 37,172,768 35,567,761 10,513,383
LIABILITIES
Amounts held for other governments $ 8,908,376 $ 37,172,768 $ 35,567,761 $ 10,513,383
POUDRE RIVER PUBLIC LIBRARY DISTRICT Balance-- Balance--
Dec. 31, 2011 Additions Deletions Dec. 31, 2012
ASSETS
Cash and cash equivalents $ 661,668 $ 16,883,360 $ 16,993,201 $ 551,827
Receivables - interest 33,798 - 21,108 12,690
Investments, at fair value
Certificates of deposit 608,001 - 318,840 289,161
U S Government securities 6,479,664 119,587 2,851,771 3,747,480
Corporate bonds 697,632 132,938 300,595 529,975
Total Investments, at fair value 7,785,297 252,525 3,471,206 4,566,616
Total Assets 8,480,763 17,135,885 20,485,515 5,131,133
LIABILITIES
Amounts held for other governments $ 8,480,763 $ 17,135,885 $ 20,485,515 $ 5,131,133
TOTAL - ALL FUNDS Balance-- Balance--
Dec. 31, 2011 Additions Deletions Dec. 31, 2012
ASSETS
Cash and cash equivalents $ 1,352,760 $ 52,689,982 $ 52,353,057 $ 1,689,685
Receivables - interest 68,366 - 31,836 36,530
Investments, at fair value
Certificates of deposit 1,247,011 35,951 399,362 883,600
U S Government securities 13,290,243 1,098,017 2,968,426 11,419,834
Corporate bonds 1,430,759 484,703 300,595 1,614,867
Total Investments, at fair value 15,968,013 1,618,671 3,668,383 13,918,301
Total Assets 17,389,139 54,308,653 56,053,276 15,644,516
LIABILITIES
Amounts held for other governments $ 17,389,139 $ 54,308,653 $ 56,053,276 $ 15,644,516
City of Fort Collins Comprehensive Annual Financial Report 145
COMPONENT UNIT FUNDS
RECONCILIATIONS
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
DOWNTOWN DEVELOPMENT AUTHORITY
Reconciliations:
Reconciliation of the Balance Sheet to the Statement of Net Position
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement
of Activities
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.
146 City of Fort Collins Comprehensive Annual Financial Report
COMPONENT UNIT
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2012
Statement
Total Adjustments of Net Position
ASSETS
Cash and cash equivalents $ 734,849 $ - $ 734,849
Investments 6,076,092 - 6,076,092
Receivables
Property taxes 3,376,383 - 3,376,383
Interest 45,354 - 45,354
Prepaid 869 - 869
Due from other governments 3,472 - 3,472
Inventory of real property held for resale 135,464 - 135,464
Restricted investments 1,250,000 - 1,250,000
Capital assets (non-depreciable) - 2,528,747 1 2,528,747
Capital assets (net of accumulated depreciation) - 2,853,874 1 2,853,874
Total Assets 11,622,483 5,382,621 17,005,104
LIABILITIES
Accounts payable 19,121 - 19,121
Interest payable - 52,050 2 52,050
Wages payable 10,035 - 10,035
Due to other governments 35,000 - 35,000
Non-Current liabilities
Due within one year - 1,298,537 2 1,298,537
Due after one year - 10,510,000 2 10,510,000
Total Liabilities 64,156 11,860,587 11,924,743
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 3,376,383 - 3,376,383
Total Deferred inflows of resources 3,376,383 - 3,376,383
FUND BALANCES/NET POSITION
Fund balances
Nonspendable 136,333 - 136,333
Restricted 2,045,581 - 2,045,581
Assigned 5,781,928 (5,781,928) -
Unassigned 218,102 - 218,102
Total Fund Balances 8,181,944 (5,781,928) 2,400,016
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $ 11,622,483
Net Position:
Net investment in capital assets 5,382,621 5,382,621
Restricted for debt service 2,045,581 2,045,581
Unrestricted (deficits) (5,724,224) 3 (5,724,224)
Total Net Position of Component Unit (page 29) $ 1,703,978 $ 1,703,978
1 Capital assets net of accumulated depreciation used in governmental activities are not current financial resources
Therefore they are not reported in the funds.
2 Long-term liabilities, including bonds payable, related interest, and compensated absences, are not due and
payable in the current period and therefore not reported in the funds.
3 The component unit receives tax increment to service the bonds issued for improvements made within the downtown area. A
majority of these improvements relate to building facades intended to preserve the historical architecture in the Old Town area
of the City's downtown. Although the component unit may benefit over time from any increase in the assessed value of these
properties related to these improvements, no assets are recorded in relation to these activities. As a result, the statement of net
position for the component unit reflects a deficit balance for unrestricted net position.
City of Fort Collins Comprehensive Annual Financial Report 147
COMPONENT UNIT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2012
Statement
Total Adjustments of Activities
Expenditures/Expenses (including transfers):
Expenditures/expenses $ 7,302,202 $ (1,206,072) 1 $ 6,096,130
7,302,202 (1,206,072) 6,096,130
Program Revenues
Charges for services 40,436 - 40,436
Operating grants and contributions 43,518 - 43,518
Net Program Revenues 83,954 - 83,954
Net Program Expense 7,218,248 (1,206,072) 6,012,176
General Revenues
Property taxes 3,123,150 - 3,123,150
Investment earnings 106,391 - 106,391
Miscellaneous 627,701 (1,895,980) 2 (1,268,279)
Total General Revenues 3,857,242 (1,895,980) 1,961,262
Change in Net Position (pages 30-31) (3,361,006) (689,908) (4,050,914)
Fund Balance (Deficit)/Net Position
Beginning of the year, as restated 11,542,950 (5,678,712) 5,754,892
End of the year $ 8,181,944 $ (6,368,620) $ 1,703,978
1 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 governmental funds
Net decrease in accrued interest related to last debt service payment (3,547)
Net decrease in compensated absences (735)
Debt payment (1,321,980)
Current year depreciation 120,190
$ (1,206,072)
2 Proceeds from issuance of long term debt are not reported as revenues
Loss on capital assets (1,274,000)
Proceeds from issuance of debt are not reported as revenues (621,980)
$ (1,895,980)
148 City of Fort Collins Comprehensive Annual Financial Report
DOWNTOWN DEVELOPMENT AUTHORITY
BALANCE SHEET
DECEMBER 31, 2012
General Debt Service Total
ASSETS
Cash and cash equivalents $ 651,746 $ 83,103 $ 734,849
Investments 5,394,327 681,765 6,076,092
Receivables
Property taxes 639,894 2,736,489 3,376,383
Interest 14,641 30,713 45,354
Prepaid item 869 - 869
Due from other governments 3,472 - 3,472
Inventory of real property held for resale 135,464 - 135,464
Restricted - investmemts - 1,250,000 1,250,000
Total Assets 6,840,413 4,782,070 11,622,483
LIABILITIES
Accounts payable, accruals, and other 19,121 - 19,121
Wages payable 10,035 - 10,035
Due to other governments 35,000 - 35,000
Total Liabilities 64,156 - 64,156
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 639,894 2,736,489 3,376,383
Total Deferred Inflows of Resources 639,894 2,736,489 3,376,383
FUND BALANCES
Nonspendable 136,333 - 136,333
Restricted - 2,045,581 2,045,581
Assigned 5,781,928 - 5,781,928
Unassigned 218,102 - 218,102
Total Fund Balances 6,136,363 2,045,581 8,181,944
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 6,840,413 $ 4,782,070 $ 11,622,483
City of Fort Collins Comprehensive Annual Financial Report 149
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2012
General Debt Service Total
REVENUES
Taxes $ 630,858 $ 2,492,292 $ 3,123,150
Licenses and permits 2,000 - 2,000
Intergovernmental 43,518 - 43,518
Fees and charges for services 38,436 - 38,436
Earnings on investments 78,295 28,096 106,391
Miscellaneous revenue 5,721 - 5,721
Total Revenues 798,828 2,520,388 3,319,216
EXPENDITURES
Current operating
Administrative 5,027,627 1,812 5,029,439
Debt service
Principal - 1,543,647 1,543,647
Interest - 729,116 729,116
Total Expenditures 5,027,627 2,274,575 7,302,202
Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,228,799) 245,813 (3,982,986)
OTHER FINANCING SOURCES
Proceeds from issuance of debt 621,980 - 621,980
Total Other Financing Sources 621,980 - 621,980
Net Change in Fund Balances (3,606,819) 245,813 (3,361,006)
Fund Balances-January 1 9,743,182 1,799,768 11,542,950
Fund Balances-December 31 $ 6,136,363 $ 2,045,581 $ 8,181,944
150 City of Fort Collins Comprehensive Annual Financial Report
DOWNTOWN DEVELOPMENT AUTHORITY
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Taxes $ 630,858 $ 593,580 $ 37,278
Licenses and permits 2,000 1,800 200
Intergovernmental 43,518 35,000 8,518
Fees and charges for services 38,436 180,000 (141,564)
Earnings on investments 78,295 4,384 73,911
Miscellaneous revenue 5,721 - 5,721
Total Revenues 798,828 814,764 (15,936)
EXPENDITURES
Administration 5,027,627 13,269,409 8,241,782
Total Expenditures 5,027,627 13,269,409 8,241,782
Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,228,799) (12,454,645) 8,225,846
OTHER FINANCING SOURCES
Proceeds from issuance of debt 621,980 1,000,000 (378,020)
Total Other Financing Sources 621,980 1,000,000 (378,020)
Net Change in Fund Balances (3,606,819) $ (11,454,645) $ 7,847,826
Fund Balances--January 1 9,743,182
Fund Balances--December 31 $ 6,136,363
City of Fort Collins Comprehensive Annual Financial Report 151
DOWNTOWN DEVELOPMENT AUTHORITY
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES--
ACTUAL AND BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2012
Actual Budget Variance
REVENUES
Taxes $ 2,492,292 $ 2,465,411 $ 26,881
Earnings on investments 28,096 22,150 5,946
Total Revenues 2,520,388 2,487,561 32,827
EXPENDITURES
Internal Administration Services 1,812 1,812 -
Principal 1,543,647 1,921,417 377,770
Interest 729,116 729,117 1
Total Expenditures 2,274,575 2,652,346 377,771
Excess (Deficiency) of Revenues
Over (Under) Expenditures 245,813 (164,785) 410,598
Net Change in Fund Balances 245,813 $ (164,785) $ 410,598
Fund Balances--January 1 1,799,768
Fund Balances--December 31 $ 2,045,581
City of Fort Collins Comprehensive Annual Financial Report 153
Statistical Section
This part of the City of Fort Collins comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the governments overall financial health.
Financial Trends - These schedules contain trend information to help the reader understand how the City of Fort
Collins’ financial performance and well-being have changed over time.
Net Position by Component .............................................. Exh. A-1 ........................................................ 155
Changes in Net Position .................................................... Exh. A-2 ........................................................ 156
Fund Balances, Governmental Funds ............................... Exh. A-3 ........................................................ 157
Changes in Fund Balances, Governmental Funds ............ Exh. A-4 ........................................................ 158
Revenue Capacity - These schedules contain information to help the reader assess the City of Fort Collins’ most
significant local revenue sources - Sales and Use taxes.
Taxable Sales by Category ............................................... Exh. A-5 ........................................................ 159
Direct and Overlapping Sales Tax Rates .......................... Exh. A-6 ........................................................ 160
Sales Tax Revenue Taxpayers by Industry ....................... Exh. A-7 ........................................................ 161
Debt Capacity - These schedules present information to help the reader assess the affordability of the City of Fort
Collins’ current levels of outstanding debt and its ability to issue additional debt in the future.
Ratios of Outstanding Debt by Type ................................ Exh. A-8 ........................................................ 162
Ratios of General Bonded Debt Outstanding ................... Exh. A-9 ........................................................ 163
Direct & Overlapping Governmental Act. Debt ............... Exh. A-10 ...................................................... 164
Legal Debt Margin Information ........................................ Exh. A-11 ...................................................... 165
Pledged Revenue Coverage .............................................. Exh. A-12 ...................................................... 166
Demographic and Economic Information - These schedules offer demographics and economic indicators to help the
reader understand the environment within which the City of Fort Collins financial activities take place.
Demographic and Economic Statistics ............................. Exh. A-13 ...................................................... 168
Principal Employers .......................................................... Exh. A-14 ...................................................... 169
Full-time Equivalent City Emp. By Function/Program .... Exh. A-15 ...................................................... 170
Operating Information - These schedules contain service and infrastructure date to help the reader understand how
the information in City of Fort Collins financial report relates to the services government provides and the activities
it performs.
Operating Indicators by Function/Program ...................... Exh. A-16 ...................................................... 171
Capital Asset Statistics by Function/Program .................. Exh. A-17 ...................................................... 172
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year and/or city departments.
154 City of Fort Collins Comprehensive Annual Financial Report
THIS PAGE INTENTIONALLY LEFT BLANK.
City of Fort Collins Comprehensive Annual Financial Report 155
Net Position by Component (in thousands) Exhibit A-1
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Restated Restated
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental activities
Net investment in capital assets $ 419,142 $ 392,475 $ 428,474 $ 481,713 $ 526,367 $ 551,853 $ 573,887 $ 597,270 $ 628,758 $ 662,461
Restricted 7,675 10,005 9,826 8,957 (12,037) 5,229 8,960 37,138 43,327 52,466
Unrestricted 127,167 146,213 188,871 193,016 184,842 161,680 146,408 113,086 107,784 119,944
Total governmental activities net position 553,984 548,693 627,170 683,685 699,172 718,762 729,256 747,494 779,869 834,870
Business-type activities
Net investment in capital assets 327,794 340,554 358,079 376,929 398,949 429,392 453,420 466,364 490,511 508,284
Restricted 7,117 4,546 1,118 1,091 1,130 1,642 1,671 1,030 1,025 995
Unrestricted 109,284 123,724 141,010 161,847 175,273 168,966 157,998 163,527 160,226 172,528
Total business-type activities net position 444,194 468,824 500,207 539,867 575,353 600,000 613,089 630,922 651,763 681,808
Primary government
Net investment in capital assets 746,936 733,029 786,553 858,642 925,317 981,245 1,027,307 1,063,634 1,119,270 1,170,745
Restricted 14,792 14,551 10,944 10,047 (10,907) 6,871 10,631 38,168 44,352 53,461
Unrestricted 236,451 269,938 329,880 354,863 360,115 330,646 304,406 276,613 268,010 292,472
Total primary government net position $ 998,179 $ 1,017,517 $ 1,127,377 $ 1,223,552 $ 1,274,525 $ 1,318,762 $ 1,342,345 $ 1,378,416 $ 1,431,631 $ 1,516,678
Totals may not add due to rounding
156 City of Fort Collins Comprehensive Annual Financial Report
Changes in Net Position (in thousands) Exhibit A-2
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental activities
General government $ 22,943 $ 13,358 $ 19,382 $ 27,085 $ 26,553 $ 33,535 $ 32,868 $ 29,752 $ 33,674 $ 34,645
Public safety 34,662 35,766 38,703 43,299 44,412 46,521 50,056 48,854 51,313 55,633
Culture, parks, recreation & natural areas 22,699 31,412 34,029 32,004 34,790 35,490 38,515 27,342 29,755 32,448
Planning and development 9,747 11,730 5,752 5,525 7,593 6,585 9,706 14,331 11,053 9,502
Transportation 35,262 43,125 41,074 44,644 42,839 44,659 36,471 34,698 38,540 42,249
Library 3,759 3,645 3,790 3,729 3,900 - - - - -
Interest on long-term debt 1,237 2,092 3,172 3,100 3,113 3,063 2,632 2,682 2,523 2,148
Total governmental activities expenses 130,308 141,128 145,902 159,386 163,199 169,852 170,247 157,659 166,857 176,625
Business-type activities
Light & Power 67,103 69,014 73,898 73,793 80,479 81,620 83,888 91,693 97,057 101,513
Water 18,991 19,644 19,787 19,790 23,272 21,205 20,667 19,671 19,941 22,169
Wastewater 13,079 14,105 13,866 13,187 14,240 13,370 14,668 14,129 14,163 15,872
Storm drainage 6,826 8,237 8,187 7,493 9,132 9,021 9,426 8,307 8,407 8,119
Golf 2,349 2,297 2,529 2,469 2,697 2,507 2,387 2,454 2,547 2,661
Total business-type activities expenses 108,348 113,297 118,267 116,732 129,820 127,723 131,037 136,253 142,115 150,333
Total primary government expenses 238,656 254,425 264,169 276,118 293,019 297,575 301,284 293,911 308,973 326,958
Program revenues
Governmental activities
General government 3,309 4,299 4,297 4,706 4,890 12,962 8,863 6,782 7,479 6,458
Public safety 2,998 2,768 2,371 2,436 3,719 1,823 1,930 1,862 1,724 1,548
Culture, parks, recreation & natural areas 6,601 6,223 6,952 7,257 11,868 8,065 7,388 7,004 7,491 7,680
Planning and development 3,110 3,588 3,063 2,828 2,617 1,649 994 1,295 1,622 2,579
Transportation 8,549 9,216 8,805 9,296 9,293 12,003 8,577 8,101 6,926 11,147
Operating grants & contributions 10,194 10,454 23,640 10,684 10,988 6,917 7,998 8,240 13,712 9,284
Capital grants & contributions 25,086 28,275 46,702 31,530 30,932 7,775 25,717 16,014 14,784 31,678
Total governmental activities program revenues 59,848 64,823 95,829 68,736 74,306 51,194 61,467 49,298 53,737 70,374
Business-type activities
Light & Power 71,020 74,571 80,049 81,482 83,326 83,521 84,253 94,235 100,814 109,776
Water 23,615 22,798 24,544 26,366 25,243 24,499 21,978 24,463 24,308 28,553
Wastewater 12,994 13,415 13,908 14,235 15,114 16,272 17,803 19,275 19,149 20,882
Storm drainage 11,963 13,234 13,505 13,074 13,197 13,576 13,631 13,869 13,946 14,082
Golf 2,207 2,215 2,415 2,540 2,579 2,644 2,608 2,676 2,672 3,096
Operating grants & contributions 182 52 57 13 20 24 112 220 131 6
Capital grants & contributions 12,696 12,984 16,591 16,151 16,651 12,233 8,169 9,019 11,661 15,979
Total business-type activities program revenues 134,676 139,270 151,069 153,860 156,129 152,768 148,553 163,757 172,680 192,374
Total primary government program revenues 194,524 204,093 246,898 222,596 230,436 203,963 210,020 213,055 226,417 262,748
Net (expenses) revenue
Governmental activities (70,460) (76,304) (50,073) (90,649) (88,892) (118,658) (108,780) (108,360) (113,120) (106,251)
Business-type activities 26,328 25,973 32,802 37,128 26,309 25,046 17,517 27,504 30,565 42,042
Total primary government net expenses (44,132) (50,332) (17,271) (53,522) (62,583) (93,612) (91,263) (80,857) (82,556) (64,210)
General revenues and other changes in net position
Govermental activities
Taxes:
Sales & use taxes 68,376 72,057 72,735 75,631 78,445 75,865 70,501 74,719 97,589 109,732
Property taxes 13,903 14,444 14,955 15,898 16,298 16,683 17,038 17,833 17,742 18,188
Occupational privilege taxes 2,341 2,253 2,228 2,424 2,359 2,494 2,413 2,327 2,433 2,560
Lodging tax 582 601 668 842 838 833 736 808 909 1,012
Intergovernmental not restricted to programs 504 527 494 486 541 10,420 9,277 9,919 10,274 10,681
Investment earnings 2,820 2,955 8,941 17,231 14,546 9,043 3,655 2,367 2,601 1,998
Miscellaneous 512 278 392 3,540 3,261 14,400 1,394 787 1,019 1,246
Transfers 4,881 5,927 6,405 6,670 6,900 11,820 10,947 13,636 13,486 15,837
Total governmental activities 93,918 99,042 106,818 122,722 123,188 141,560 115,962 122,395 146,054 161,253
Business-type activities
Intergovernmental not restricted to programs - - - - 10 - - - - -
City of Fort Collins Comprehensive Annual Financial Report 157
Fund Balances, Governmental Funds (in thousands) Exhibit A-3
Last Ten Fiscal Years
(modified accrual basis of accounting)
Restated
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Fund
Non Spendable $ 1,781 $ 1,781 $ 1,781 $ 3,026 $ 3,026 $ 3,026 $ 16,616 $ 9,546 $ 8,519 $ 8,519
Restricted 5,876 6,085 6,433 5,386 5,278 4,956 4,287 6,400 7,389 9,751
Committed 521 420 460 813 1,025 569 700 720 604 589
Assigned 22,432 21,146 24,418 21,806 16,444 13,008 5,015 4,929 7,348 12,439
Unassigned 6,187 4,723 4,304 11,973 22,485 23,897 10,977 19,330 16,307 23,956
Total general fund 36,797 34,155 37,397 43,005 48,258 45,456 37,594 40,924 40,167 55,253
All Other Governmental Funds
Non Spendable - - - - - - 1 6 7 5,311
Restricted 410 411 428 1,183 1,199 1,245 4,674 31,816 35,938 42,715
Committed 18,231 21,823 25,495 15,293 13,440 14,652 14,352 27,556 21,540 30,543
Assigned 71,554 119,428 131,285 114,448 95,644 89,859 87,415 30,269 30,978 23,447
Unassigned - - - - - - (9,930) (4,703) (6,842) (14,592)
Total other governmental funds $ 90,195 $ 141,661 $ 157,207 $ 130,924 $ 110,283 $ 105,755 $ 96,512 $ 84,944 $ 81,622 $ 87,424
Totals may not add due to rounding
158 City of Fort Collins Comprehensive Annual Financial Report
Changes in Fund Balances, Govermental Funds (in thousands) Exhibit A-4
Last Ten Fiscal Years
(modified accrual basis of accounting)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenues
Taxes $ 84,771 $ 88,866 $ 90,071 $ 93,994 $ 97,278 $ 95,875 $ 90,689 $ 95,687 $ 118,673 $ 131,491
Licences & permits 1,855 1,948 1,887 1,656 1,657 1,493 1,013 1,236 1,554 2,184
Intergovernmental 17,545 21,302 15,985 22,241 18,057 26,998 29,802 37,520 34,738 53,192
Fees and charges for services 30,395 33,975 31,382 31,681 39,947 30,013 22,918 22,709 22,765 30,742
Fines & forfeitures 1,845 2,287 1,929 2,266 2,825 2,749 2,779 2,737 2,730 2,783
Earnings on investments 2,291 2,422 5,381 8,515 8,798 5,861 3,082 2,064 2,255 1,754
Securities lending income 183 275 3,077 7,807 3,915 1,809 103 6 - -
Miscellaneous revenue 12,863 14,175 30,199 15,201 12,646 4,408 2,472 2,684 8,835 4,224
Total Revenues 151,748 165,251 179,911 183,362 185,121 169,205 152,858 164,643 191,549 226,370
Expenditures
Police services 24,081 27,240 24,748 26,566 28,463 28,424 29,269 30,490 31,231 34,512
Financial services 3,028 2,849 2,641 2,553 2,877 3,013 3,044 2,909 2,874 3,187
Community and operation 24,781 48,233 28,611 32,441 33,674 32,924 32,894 29,375 32,298 36,043
Planning, development and transporation 28,994 37,501 36,313 36,419 36,103 42,977 37,091 34,475 41,862 45,397
Executive, legislative, and judicial 4,898 4,771 4,907 4,323 4,613 4,945 4,306 4,675 4,390 4,639
Employee and communications 1,901 1,832 1,849 1,618 1,536 2,036 2,774 1,949 2,590 2,449
Sustainability services 5,915 3,670 4,306 3,788 5,215 4,579 8,735 12,246 9,643 7,096
Other 1,064 1,790 1,128 1,084 1,478 1,995 1,177 1,717 1,318 1,682
Library 3,759 3,645 3,740 3,729 3,997 346 - - - -
Emergency recovery 602 - - - - - - - - -
Securities lending
Interest 147 255 3,056 7,695 3,854 1,563 53 4 - -
Agent fees 14 20 21 45 37 57 28 1 - -
Intergovernmental
Fire protection 12,683 12,625 14,515 15,161 15,505 16,383 17,224 17,458 18,994 19,283
Capital outlay 41,145 18,922 27,363 61,964 54,065 27,379 23,944 31,851 40,914 38,356
Debt service
Principal 2,854 3,090 3,777 4,243 2,988 4,626 4,731 3,805 4,174 6,968
Interest and debt service costs 1,515 1,274 4,262 3,267 3,128 2,955 2,654 2,693 2,524 2,499
Total expenditures 157,382 167,716 161,237 204,897 197,534 174,201 167,923 173,650 192,811 202,111
Excess (deficiency) of revenues over
(under) expenditures (5,634) (2,465) 18,674 (21,535) (12,413) (4,996) (15,066) (9,007) (1,262) 24,259
Other Financing Sources (Uses)
Proceeds from issuance of long term debt 173 51,402 162 608 763 1,198 - - 976 35,092
Transfers in 107,193 103,815 104,098 114,140 112,846 114,237 115,086 35,457 39,128 41,781
Transfers out (107,078) (103,927) (104,147) (113,888) (116,583) (117,769) (117,124) (39,156) (42,958) (46,030)
Sale of capital assets - - - - - - - 265 37 181
Payments to escrow agent - - - - - - (2) - - (34,395)
Total other financing sources (uses) 289 51,290 113 860 (2,975) (2,334) (2,040) (3,435) (2,817) (3,371)
Net change in fund balances $ (5,345) $ 48,825 $ 18,788 $ (20,675) $ (15,388) $ (7,330) $ (17,106) $ (12,441) $ (4,079) $ 20,888
Debt service as a percentage of
noncapital expenditures 3.64% 3.17% 6.67% 5.13% 4.35% 5.42% 5.11% 4.54% 4.38% 5.78%
Totals may not add due to rounding
City of Fort Collins Comprehensive Annual Financial Report 159
Taxable Sales by Category Exhibit A-5
Last Ten Fiscal Years
in millions of dollars
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales Tax Category
Grocery, Convenience, Liquor $ 274.9 $ 283.3 $ 299.6 $ 320.1 $ 347.4 $ 359.8 $ 359.7 $ 363.8 $ 394.1 $ 429.0
Restaurants, Caterers and Bars 226.5 238.3 248.7 257.0 274.8 285.9 285.4 295.6 315.4 337.9
General Merchandise 332.6 335.5 339.7 334.9 336.2 318.3 306.7 299.4 303.0 303.5
Vehicle Sales, Parts and Repairs 171.1 165.3 157.7 157.8 175.8 162.9 149.3 160.0 164.5 180.6
Building Materials, Garden Equipment & Supplies 112.9 121.6 128.3 129.2 132.4 138.4 130.2 142.9 154.8 165.9
Sporting, Hobby, Book, Music 115.6 114.3 116.1 116.9 121.7 126.0 126.1 129.2 134.5 134.9
Broadcasting and Telecommunications 119.1 119.8 103.2 99.5 116.5 113.7 113.0 119.0 116.7 117.2
Electronics and Appliances 79.6 84.1 94.3 104.8 116.8 117.7 107.8 111.9 118.2 122.1
Miscellaneous Retailers 96.2 98.0 99.1 102.5 113.6 110.0 103.9 110.4 116.4 121.7
Utilities 72.3 83.3 93.3 99.6 96.0 103.3 97.5 100.8 107.0 111.2
Clothing and Accessories 84.7 94.7 95.7 87.8 84.9 79.4 74.8 76.9 83.0 88.7
Pharmacy, Salon and Laundry 37.6 38.6 39.8 40.0 44.0 45.4 45.0 54.5 61.1 54.6
Other 50.5 45.8 45.5 47.6 47.4 47.2 43.0 44.3 45.9 51.0
Rental and Leasing Services 57.3 52.4 52.0 49.1 52.1 52.1 46.4 43.1 42.7 46.3
Furniture and Home Furnishings 44.0 48.4 50.9 51.7 56.7 52.3 38.9 41.0 43.7 50.0
Wholesale Trade 37.7 42.7 41.6 138.8 57.9 49.2 41.9 35.6 37.5 42.4
Lodging 23.2 25.0 27.2 31.7 34.3 33.9 29.1 32.2 35.2 40.2
Manufacturing 31.3 30.5 39.0 33.2 37.9 37.3 26.7 30.5 37.1 44.5
Total $1,967.1 $2,021.5 $2,071.8 $2,202.1 $2,246.4 $2,232.8 $2,125.3 $2,191.2 $2,310.9 $2,441.7
City direct sales tax rate* 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.85% 3.85%
* Food sales city direct sales tax rate is 2.25%
Totals may not add due to rounding
160 City of Fort Collins Comprehensive Annual Financial Report
Direct and Overlapping Sales Tax Rates Exhibit A-6
Last Ten Fiscal Years
Fiscal Year City Direct Rate* Larimer County State of Colorado
2003 3.00% 0.80% 2.90%
2004 3.00% 0.80% 2.90%
2005 3.00% 0.80% 2.90%
2006 3.00% 0.80% 2.90%
2007 3.00% 0.80% 2.90%
2008 3.00% 0.80% 2.90%
2009 3.00% 0.80% 2.90%
2010 3.00% 0.80% 2.90%
2011 3.85% 0.80% 2.90%
2012 ~ 3.85% 0.80% / 0.60% 2.90%
* Food for home consumption sales direct rate is 2.25%
~Larimer County tax rate decreased from 0.8% to 0.6% effective July 1, 2012
City of Fort Collins Comprehensive Annual Financial Report 161
Sales Tax Revenue Taxpayers by Industry Exhibit A-7
Current Year and 2003
tax liability in thousands
Fiscal Year 2012 Fiscal Year 2003
Number Percentage Tax Percentage Number Percentage Tax Percentage
of Filers of Total Liability of Total of Filers of Total Liability of Total
Grocery, Convenience, Liquor 212 1.95% $ 12,179 13.80% 154 1.74% $ 6,899 12.25%
Restaurants, Caterers and Bars 471 4.33% 12,970 14.69% 413 4.66% 6,663 11.83%
General Merchandise 23 0.21% 10,401 11.78% 16 0.18% 9,314 16.54%
Vehicle Sales, Parts and Repairs 389 3.58% 6,959 7.88% 344 3.88% 5,064 8.99%
Building Materials, Garden Equipment & 2,454 22.58% 6,387 7.24% 1,473 16.61% 3,340 5.93%
Sporting, Hobby, Book, Music 423 3.89% 5,178 5.87% 329 3.71% 3,409 6.05%
Broadcasting & Telecommunications 255 2.35% 4,576 5.18% 261 2.94% 3,530 6.27%
Electronics and Appliances 340 3.13% 4,705 5.33% 163 1.84% 2,357 4.19%
Miscellaneous Retailers 1,327 12.21% 4,697 5.32% 1,028 11.59% 2,824 5.01%
Utilities 11 0.10% 4,282 4.85% 7 0.08% 2,146 3.81%
Clothing and Accessories 265 2.44% 3,412 3.87% 212 2.39% 2,491 4.42%
Pharmacy, Salon and Laundry 707 6.51% 2,049 2.32% 516 5.82% 1,090 1.94%
Other 2,769 25.48% 1,950 2.21% 2,624 29.59% 1,500 2.66%
Rental and Leasing Services 358 3.29% 1,782 2.02% 388 4.38% 1,684 2.99%
Furniture and Home Furnishings 176 1.62% 1,920 2.17% 169 1.91% 1,291 2.29%
Wholesale Trade 308 2.83% 1,635 1.85% 320 3.61% 1,108 1.97%
Lodging 29 0.27% 1,548 1.75% 19 0.21% 692 1.23%
Manufacturing 349 3.21% 1,651 1.87% 431 4.86% 912 1.62%
Total 10,866 100.00% $ 88,281 100.00% 8,867 100.00% $ 56,314 100.00%
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended
to provide alternative information regarding the sources of the city's revenue.
Totals may not add due to rounding
162 City of Fort Collins Comprehensive Annual Financial Report
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years Exhibit A-8
in thousands
Business-Type Activities
Certificates Assignment General Certificates Assignment Total Percentage
Fiscal Revenue of of Lease Capital Obligation Revenue of of Lease Capital Primary of Personal Per
Year Bonds Participation Payments Leases Bonds Bonds Participation Payments Leases Government Income Capita
2003 7,989 15,370 833 4,921 16,410 118,475 1,970 2,649 466 169,083 4.3% 1.35
2004 6,879 63,220 803 4,603 13,455 115,037 1,890 2,552 280 208,720 5.0% 1.64
2005 5,744 61,870 771 3,475 10,455 107,495 1,805 2,451 251 194,317 4.4% 1.52
2006 4,579 60,190 737 2,815 7,395 99,031 1,715 2,345 - 178,807 3.9% 1.38
2007 3,342 58,345 702 2,602 5,000 90,602 1,715 2,234 489 165,032 3.3% 1.23
2008 2,250 55,340 666 2,636 2,535 81,618 1,595 2,117 544 149,301 2.8% 1.09
2009 985 52,225 628 1,736 - 102,440 1,470 1,995 381 161,860 3.1% 1.17
2010 670 49,100 587 1,015 - 109,884 1,360 1,868 227 164,711 3.0% 1.14
2011 340 45,870 545 2,755 - 100,380 1,230 1,734 245 153,098 2.7% 1.06
2012 - 41,845 501 3,719 - 90,007 1,095 1,594 208 138,968 n/a 0.93
Totals may not add due to rounding
Note: Personal Income provided by the Bureau of Economic Analysis. Information is updated regularly and 2012 data was not availabe at the time this schedule was prepared.
City of Fort Collins Comprehensive Annual Financial Report 163
Ratios of General Bonded Debt Outstanding Exhibit A-9
Last Ten Fiscal Years
in thousands
Percentage of
General Actual Taxable
Fiscal Obligation Value of Per
Year Bonds Property Capita
2003 16,410 0.18% 131
2004 13,455 0.14% 106
2005 10,455 0.10% 82
2006 7,395 0.07% 57
2007 5,000 0.04% 37
2008 2,535 0.02% 19
2009 - 0.00% -
2010 - 0.00% -
2011 - 0.00% -
2012 - 0.00% -
164 City of Fort Collins Comprehensive Annual Financial Report
Direct and Overlapping Governmental Activities Debt Exhibit A-10
As of December 31, 2012
in thousands
Percentage Share of Debt
Debt Applicable Applicable
Outstanding
2
to the City
3
to the City
Direct Debt
City of Fort Collins
1
$ 42,346 100.00% $ 42,346
Overlapping Debt
Harmony Tech Park No. 1
4
- 0.00% -
Harmony Tech Park No. 2
4
- 0.08% -
Harmony Tech Park No. 3
4
- 0.00% -
Poudre R-1 School District
4
233,533 74.54% 174,085
Poudre Health Services District
4
- 73.26% -
Poudre River Public Library
4
- 75.88% -
Total Overlapping Debt 233,533 174,085
Total Direct and Overlapping Debt $ 275,879 $ 216,431
Estimated actual valuation $ 14,531,851
Assessed valuation $ 1,796,031
Net direct debt $ 42,346
Estimated overlapping debt $ 174,085
Net direct and estimated overlapping debt $ 216,431
Ratio of net direct debt to estimated actual valuation 0.0029
Ratio of net direct debt to assessed valuation 0.0236
Net direct debt per capita
5
$ 0
Ratio of net direct and estimated overlapping debt to estimated actual valuation 0.0149
Ratio of net direct and estimated overlapping debt to assessed valuation 0.1205
Net direct and estimated overlapping debt per capita
5
$ 1
Estimated actual valuation per capita
5
$ 98
Assessed valuation per capita
5
$ 12
1
2 Includes outstanding debt supported by general property taxes less available debt service monies.
3
City of Fort Collins Comprehensive Annual Financial Report 165
Legal Debt Margin Information Exhibit A-11
Last Ten Fiscal Years
in thousands
Assessed Valuation
1
$ 1,796,031
Debt limit - 10% of assessed value 179,603
Amount of debt applicable to limit:
Total bonded debt (including special assessments) 101,807
Less:
Assets in debt service funds available
for payment of general obligation debt -
Other deductions allowed by law:
Downtown Development Authority tax increment bonds (11,800)
Light and Power revenue bonds (13,215)
Water revenue bonds (17,679)
Sewer revenue bonds (33,025)
Storm drainage revenue bonds (26,088)
Net amount of debt applicable to debt limit -
Legal debt margin $ 179,603
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Debt Limit $ 136,426 $ 139,080 $ 149,791 $ 152,958 $ 171,317 $ 175,881 $ 182,224 $ 181,595 $ 179,223 $ 179,603
Total net debt applicable to limit - - - - - - - - - -
Legal debt margin $ 136,426 $ 139,080 $ 149,791 $ 152,958 $ 171,317 $ 175,881 $ 182,224 $ 181,595 $ 179,223 $ 179,603
Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1
Source: Larimer County Assessor's Office.
166 City of Fort Collins Comprehensive Annual Financial Report
Pledged Revenue Coverage Exhibit A-12
Last Ten Fiscal Years
in thousands
Net Revenue
Gross Available for
Revenues Expenses Debt Service Principal Interest Total Coverage
2003 75,953 64,029 11,924 - - - n/a
2004 79,214 65,891 13,323 - - - n/a
2005 84,804 71,280 13,524 - - - n/a
2006 88,113 71,873 16,240 - - - n/a
2007 90,901 76,362 14,539 - - - n/a
2008 89,499 79,266 10,232 - - - n/a
2009 88,490 82,132 6,359 - - - n/a
2010 99,951 91,483 8,468 - 235 235 36.02
2011 109,106 96,124 12,982 1,415 622 2,037 6.37
2012 119,771 100,664 19,107 1,455 580 2,035 9.39
Net Revenue
Gross Available for
Revenues Expenses Debt Service Principal Interest Total Coverage
2003 16,498 8,767 7,731 3,172 2,220 5,392 1.43
2004 16,979 9,461 7,517 1,505 1,951 3,456 2.18
2005 17,140 9,488 7,652 2,970 1,874 4,844 1.58
2006 21,391 9,383 12,008 3,748 1,588 5,335 2.25
2007 22,048 9,931 12,116 3,922 1,184 5,105 2.37
2008 21,844 10,434 11,410 4,081 1,005 5,087 2.24
2009 22,875 10,577 12,298 4,237 1,817 6,054 2.03
2010 22,170 12,117 10,053 3,378 1,704 5,081 1.98
2011 20,375 11,134 9,240 2,982 1,496 4,477 2.06
2012 23,520 11,658 11,862 3,099 1,459 4,557 2.60
Net Revenue
Gross Available for
Revenues Expenses Debt Service Principal Interest Total Coverage
2003 12,910 2,574 10,336 2,163 2,284 4,447 2.32
2004 13,762 3,782 9,980 2,248 2,194 4,442 2.25
2005 14,848 3,741 11,107 2,325 2,114 4,439 2.50
2006 15,396 3,779 11,618 2,405 2,030 4,435 2.62
2007 16,698 4,615 12,084 2,150 1,643 3,793 3.19
2008 15,139 4,865 10,274 2,610 2,483 5,093 2.02
2009 14,219 5,838 8,381 2,568 2,346 4,914 1.71
2010 14,613 5,052 9,560 2,683 1,606 4,289 2.23
2011 14,669 5,299 9,371 2,238 1,143 3,380 2.77
2012 15,729 5,064 10,664 2,965 1,102 4,067 2.62
LIGHT AND POWER REVENUE BONDS
Debt Service Requirements
SEWER REVENUE BONDS
Debt Service Requirements
STORM DRAINAGE REVENUE BONDS
Debt Service Requirements
City of Fort Collins Comprehensive Annual Financial Report 167
Pledged Revenue Coverage Exhibit A-12
Last Ten Fiscal Years (continued)
in thousands
Net Revenue
Gross Available for
Revenues Expenses Debt Service Principal Interest Total Coverage
2003 31,105 12,932 18,173 2,027 1,678 3,705 4.91
2004 32,140 12,962 19,178 2,162 1,733 3,895 4.92
2005 36,535 13,288 23,247 2,237 1,656 3,893 5.97
2006 35,522 13,927 21,595 2,312 1,578 3,890 5.55
2007 39,010 14,632 24,379 2,402 1,497 3,899 6.25
2008 33,922 15,823 18,098 2,482 1,409 3,890 4.65
2009 25,767 16,358 9,409 2,633 1,173 3,806 2.47
2010 27,289 16,582 10,707 2,661 1,034 3,696 2.90
2011 29,217 16,310 12,907 2,755 943 3,698 3.49
2012 33,061 19,235 13,825 2,854 841 3,695 3.74
Totals may not add due to rounding
WATER REVENUE BONDS
Debt Service Requirements
168 City of Fort Collins Comprehensive Annual Financial Report
Demographic and Economic Statistics Exhibit A-13
Last Ten Fiscal Years
Personal Per
Income Capita
Calendar (thousands Personal Unemployment Denver/Boulder Residential
Year Population of dollars) Income Rate Greeley CPI-U Building Permits
2003 125,461 8,264,210 31,036 5.3% 186.80 1,398
2004 126,903 8,816,010 32,796 4.6% 187.00 1,295
2005 127,686 9,330,387 34,323 4.4% 190.90 979
2006 129,511 9,968,698 35,397 3.9% 197.70 585
2007 134,169 10,541,856 36,766 3.4% 202.03 506
2008 136,427 11,378,132 38,848 5.0% 209.90 385
2009 138,100 11,149,957 37,368 6.6% 208.55 227
2010 143,986 11,600,000 38,585 7.4% 212.44 266
2011 144,875 12,149,896 39,767 6.8% 220.29 431
2012 148,700 n/a n/a 6.4% 224.57 508
Note: Information for personal income, per capita, and unemployment rate is based on
the Fort Collins/Loveland regional area.
Source: Personal income, and per capita personal income provided
by the Bureau of Economic Analysis. Information is updated regularly
and is subject to change. Data for 2012 was not available at the time this schedule was prepared.
Unemployment rate provided by the Colorado Department of Labor and Employment.
Population prior to 2009 provided by the Colorado State Demography Office.
2010 population is from the US Census
2009, 2011-2012 population is estimated by the City of Fort Collins Planning Department.
CPI is provided by the US Bureau of Labor Statistics- Denver, Boulder, Greeley area is the nearest region.
City of Fort Collins Comprehensive Annual Financial Report 169
Principal Employers Exhibit A-14
2012 and Ten Years Ago
Fiscal Year 2012 Fiscal Year 2003
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Colorado State University 6,753 1 7.8% 6,252 1 7.8%
Poudre R-1 School District 3,957 2 4.6% 3,677 2 4.6%
Poudre Valley Health Care Inc. 3,100 3 3.6% 2,213 3 2.8%
City of Fort Collins 2,000 4 2.3% 1,749 5 2.2%
Larimer County 1,910 5 2.2% 1,476 6 1.8%
Woodward Inc 1,302 6 1.5% 750 9 0.9%
Center Partners 1,112 7 1.3% - - 0.0%
Hewlett Packard Company 927 8 1.1% 2,163 4 2.7%
Employment Solutions Personnel Serv. 713 9 0.8% - - 0.0%
Otter Productions LLC. 468 10 0.5% - - 0.0%
Celestica USA Inc - - 0.0% 635 10 0.8%
Agilent Technologies - - 0.0% 1,046 7 1.3%
Advanced Energy Industries Inc - - 0.0% 758 8 0.9%
Total 22,242 25.7% 20,719 25.9%
Source 2012: QCEW, Second Quarter, 2012
Source 2003: City of Fort Collins Planning Department
170 City of Fort Collins Comprehensive Annual Financial Report
Full-time Equivalent City Employees by Function/ Program Exhibit A-15
Last Ten Fiscal Years
Function/ Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General government
Economic Development 0.0 0.8 0.2 0.7 1.5 2.9 3.8 3.5 4.4 4.2
Finance Administration 5.8 5.8 3.8 2.6 2.9 3.0 3.0 2.6 2.6 3.1
Accounting, Sales Tax, Treasury 15.6 15.7 15.8 19.3 22.1 20.8 20.6 20.2 20.7 19.9
Budget 2.0 2.0 1.9 1.5 2.0 3.7 4.0 4.0 3.5 3.8
Purchasing & Risk Management 11.1 10.7 9.8 8.8 8.7 9.3 9.8 9.4 9.0 9.3
Information Technology 45.7 46.9 46.6 43.6 45.4 50.0 51.0 51.8 50.4 55.3
Community & Public Involvement 9.3 10.1 9.8 8.1 9.2 10.0 10.2 10.1 10.2 11.0
Human Resources 17.9 16.9 16.2 16.8 16.7 19.0 19.9 19.7 19.9 20.4
Operation Services 65.0 63.6 60.2 59.0 60.7 64.9 66.8 64.2 64.3 70.2
City Clerk's Office 5.9 5.6 5.6 5.8 5.8 5.8 5.8 5.8 5.7 5.8
City Attorney's Office 9.2 9.1 8.7 8.9 9.0 9.0 9.0 10.6 11.3 11.1
City Council 7.0 7.0 7.3 7.0 7.2 6.8 6.5 7.0 6.8 7.0
City Manager's Office 11.1 9.9 9.9 8.8 10.5 9.6 10.9 9.6 10.7 12.3
Municipal Court 7.8 7.9 7.9 8.2 7.8 8.5 7.7 7.2 8.3 8.2
Public safety
Investigations 61.0 62.6 63.9 63.1 63.7 66.0 66.3 65.4 64.8 63.5
Police Information Services 59.8 62.0 59.9 56.5 55.1 53.8 53.6 54.9 56.8 59.8
Patrol 98.0 95.7 98.1 99.8 100.3 105.3 107.3 111.2 120.0 132.6
Office of the Chief 20.0 19.8 18.9 18.1 18.0 18.4 18.6 18.2 17.6 17.5
Culture, parks, recreation & natural areas
Environmental Services 6.1 5.6 4.8 3.5 3.7 5.7 6.3 5.8 7.4 9.8
Recreation 135.0 132.5 133.0 129.3 128.3 130.7 132.3 127.5 126.1 127.0
Community Services Admin 3.8 3.5 3.0 2.8 2.0 2.0 2.0 2.0 2.0 2.0
Park Planning & Development 6.7 6.4 6.3 5.4 5.2 5.8 6.0 5.4 5.1 5.4
Cultural Services 33.5 32.1 31.8 31.5 33.8 37.3 39.8 33.8 35.6 40.6
Parks 84.5 91.4 89.0 89.9 89.2 101.7 105.3 101.5 110.0 115.4
Natural Areas 29.2 33.1 37.2 38.7 39.4 40.8 43.9 43.2 43.9 45.7
Planning and development
Social Sustainability 5.0 4.9 4.8 5.2 5.0 5.0 5.0 5.0 4.9 4.7
PDT Administration 5.3 4.8 4.6 4.8 4.8 5.4 5.3 5.4 5.6 4.8
Comm Dev & Neighborhood Svcs 51.4 51.6 49.2 47.5 45.4 44.9 39.5 36.1 37.5 46.7
Urban Renewal Authority 0.0 0.0 0.0 0.4 0.5 1.0 1.0 1.1 1.0 1.0
Transportation
PDT Administration 3.0 3.0 3.0 2.5 0.7 0.0 0.0 0.0 0.0 0.0
Transfort / Dial-a-Ride 90.4 87.6 81.1 72.1 74.2 75.6 75.0 72.9 74.2 74.3
FC Moves 3.2 2.1 1.4 1.5 2.5 4.7 4.4 4.4 4.3 4.7
Streets 50.7 52.9 50.5 49.7 48.9 48.7 45.3 47.6 53.4 53.4
Traffic 24.8 24.1 25.1 24.0 26.8 28.2 28.0 26.9 27.9 28.9
Engineering 38.6 36.2 32.6 30.5 28.7 30.8 31.2 29.6 30.7 33.3
Parking 22.4 23.1 20.9 19.3 19.0 17.7 17.8 18.8 19.2 20.6
Light & Power
Light & Power Administration 42.1 40.9 40.2 38.7 39.3 39.2 38.9 38.8 39.1 40.6
Light & Power Operations 50.6 51.3 50.5 53.0 54.2 58.8 63.0 60.7 60.0 61.7
L&P System Additions 43.2 43.4 37.6 32.1 30.6 29.1 30.6 31.4 30.7 28.4
L&P Energy Services 6.0 6.8 7.0 7.7 8.4 9.8 14.0 17.2 17.8 17.5
Water
Water Administration 33.7 32.2 31.5 30.1 29.6 30.3 30.1 29.6 30.2 31.7
Water Trans & Distribution 18.6 18.3 21.2 20.6 21.6 23.6 26.0 24.7 24.9 23.3
Water Meter Operations 10.6 10.5 10.5 10.7 9.7 9.6 10.0 9.8 11.1 10.9
Water Production 27.3 27.4 26.3 25.0 26.4 29.2 29.4 29.2 29.7 29.4
Water Quality 9.2 9.0 9.0 7.7 7.8 8.0 8.0 8.0 7.8 8.0
Water Resources 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.0
Wastewater
WW Administration 14.5 14.8 15.0 14.5 14.7 14.7 13.9 13.5 13.6 14.1
WW Trunk and Collection 16.2 15.5 15.6 15.0 14.9 14.3 15.2 16.1 16.6 17.1
City of Fort Collins Comprehensive Annual Financial Report 171
Operating Indicators by Function/Program Exhibit A-16
Last Ten Fiscal Years
Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Government
Job applications processed n/a n/a n/a 12,823 8,907 9,209 5,148 7,112 11,415 10,192
Warrants issued n/a n/a n/a 972 918 1,010 798 1,231 1,370 1,379
Camera Radar completed cases n/a n/a n/a 9,761 19,026 21,239 20,414 18,137 17,634 13,954
Public Safety
Adult arrests 6,588 6,313 4,202 4,663 5,188 4,373 4,154 4,739 4,792 5,112
Juvenile arrests 1,293 1,306 914 963 958 809 811 849 675 610
Traffic violations 12,644 12,744 13,334 13,838 15,341 18,890 15,737 20,792 18,484 21,678
Number of fires per 1000 population 3.31 2.85 3.89 2.75 2.16 2.64 2.22 2.22 2.19 2.12
Total inspections per 1000 population 25.53 17.57 1.80 1.99 3.76 9.83 16.83 16.75 11.91 24.20
Average calls per week 230 229 230 237 246 259 266 276 299 306
Average response time 4:39 4:29 4:17 4:15 4:20 4:14 4:10 4:39 4:59 5:34
Culture, parks, recreation & natural areas
Epic Pool & Ice attendance 368,353 494,577 405,660 424,313 323,183 373,809 353,161 480,586 385,426 364,459
City Park Pool attendance 69,954 64,413 63,376 70,851 71,608 91,444 77,276 74,821 75,755 66,651
Mulberry Pool attendance 93,280 89,358 73,909 87,351 92,322 98,640 117,033 167,810 202,148 134,358
Senior Center Pool attendance 44,498 23,754 35,931 25,338 37,888 32,980 55,765 21,179 25,775 29,236
Youth Activity Center attendance 24,511 45,921 23,686 3,578 7,729 712 1,090 24,207 31,171 46,202
North Aztlan Center attendance 125,135 156,697 167,136 187,728 135,203 105,362 145,898 177,779 194,315 183,292
Farm attendance 99,367 91,204 91,139 60,215 62,161 79,730 61,166 61,737 61,336 62,736
Museum attendance 21,337 34,057 40,107 40,607 32,000 18,142 33,904 26,852 22,752 23,315
Scheduled Park events 857 5,962 5,538 5,057 5,672 6,185 5,650 5,630 5,953 6,486
Planning and development
Construction permits- single family units 860 893 674 394 385 254 153 177 258 469
Construction permits- Multi family units 92 63 44 24 24 37 4 10 31 39
Transportation
Transfort
Passengers 1,504,683 1,418,102 1,481,472 1,479,241 1,641,509 1,884,194 1,994,229 2,034,195 2,156,775 2,271,732
Revenue Miles 729,639 703,081 686,030 640,677 774,545 798,849 791,627 913,682 995,858 1,028,405
Revenue Hours 57,165 58,516 57,782 54,665 66,647 68,356 69,984 75,564 77,356 78,551
Dial a Ride
Passengers 73,607 82,276 87,725 85,735 51,779 44,135 41,719 40,385 37,851 37,747
Revenue Miles 419,127 439,771 450,047 560,053 348,952 282,257 269,831 252,107 166,893 156,941
Revenue Hours 31,628 34,883 38,399 47,188 31,678 25,092 23,456 21,690 20,407 19,429
Light & Power
Customers n/a n/a n/a 62,548 62,991 63,913 64,750 65,504 66,220 67,209
Electric Use- megawatt hours n/a n/a n/a 1,404,784 1,442,861 1,429,797 1,404,529 1,442,741 1,493,417 1,508,735
Peak demand- megawatts n/a n/a n/a 279 296 285 264 282 292 302
Interuption Index- minutes/year n/a n/a n/a 25.63 18.00 10.00 10.99 17.27 21.73 16.84
Water
Customers n/a n/a n/a 33,312 32,780 33,082 32,910 32,983 33,074 33,147
Treated water delivered- acre feet n/a n/a n/a 29,133 27,192 25,633 22,683 24,030 23,387 26,875
Peak day water use- million gallons/day n/a n/a n/a 49.0 47.5 44.3 37.1 40.8 39.7 46.8
Water main breaks n/a n/a n/a 100 67 59 79 139 97 108
Wastewater
Customers n/a n/a n/a 33,120 32,992 32,847 33,134 33,226 33,305 33,398
Average flow wastewater treated- million gallons/day n/a n/a n/a 14.5 15.1 15.7 14.8 13.9 13.7 12.9
Recycled processed wastewater biosolids- dry tons n/a n/a n/a 1,764 1,709 1,738 1,793 1,747 1,817 1,901
Industrial discharge permits n/a n/a n/a 13 13 15 14 14 14 15
Storm Drainage
Customers n/a n/a n/a 39,938 40,272 40,554 40,911 40,813 41,395 42,020
Golf
Rounds played 124,327 118,781 123,313 124,609 117,133 115,031 121,579 93,898 120,236 86,842
172 City of Fort Collins Comprehensive Annual Financial Report
Capital Asset Statistics by Function/Program Exhibit A-17
Last Ten Fiscal Years
Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Government
Administrative buildings 3 3 3 3 3 3 3 3 3 3
Municipal court 1 1 1 1 1 1 1 1 1 1
Public Safety
Police stations 1 1 1 1 1 1 1 1 1 1
Police cars n/a n/a n/a 198 220 224 232 225 281 284
Fire stations 13 13 13 13 13 13 13 13 13 13
Culture, parks, recreation & natural areas
Swimming pools 4 4 4 4 4 4 4 4 4 4
Number of parks 43 44 45 45 46 46 46 46 46 48
Acreage of parks 752 759 761 761 861 861 861 861 861 871
Miles of hard surface trails 19.87 22.52 23.62 24.87 28.67 28.67 28.67 30.39 31.74 32.44
Planning and development
Land Bank progam- acres* n/a n/a n/a 51 51 51 51 51 51 51
Land Bank progam- yield of future affordable housing units* n/a n/a n/a 513 513 513 446 510 510 510
Transportation
Transit buses n/a n/a n/a 23 27 27 29 44 34 40
Lane miles n/a n/a n/a 1,756 1,793 1,796 1,796 1,796 1,796 1,861
Light & Power
Underground distribution lines- miles n/a n/a n/a 766.0 788.0 801.4 820.0 837.5 851.8 864.0
Overhead distribution lines- miles n/a n/a n/a 11.0 9.0 6.7 7.0 8.4 10.6 10.7
Distribution substations n/a n/a n/a 5 5 5 5 5 6 7
Distribution transformers n/a n/a n/a 7,525 7,982 8,060 8,082 8,226 8,357 8,453
Water
Water mains and distribution lines- miles of pipe n/a n/a n/a 532 539 540 541 527 528 529
Hydrants n/a n/a n/a 3,411 3,464 3,487 3,494 3,510 3,524 3,539
Plant capacity- millions gallons/day n/a n/a n/a 87 87 87 87 87 87 87
Raw water storage- acre feet n/a n/a n/a 6,500 7,161 7,161 7,161 7,161 7,161 7,161
Treated water storage- million gallons n/a n/a n/a 36.3 36.0 35.5 35.5 35.5 35.5 35.5
Water rights owned- avg yield in acre feet/year n/a n/a n/a 73,000 73,700 74,120 74,140 74,160 74,420 74,670
Wastewater
Trunk and collection- miles of pipe n/a n/a n/a 434 435 437 436 437 436 437
Plants- treatment capacity n/a n/a n/a 29 29 29 29 29 29 29
Biosolids facility- acres n/a n/a n/a 26,200 26,000 26,350 26,582 26,680 26,680 26,680
Storm Drainage
City owned detention basins n/a n/a n/a 90 90 90 90 90 90 90
City owned detention basins- acres n/a n/a n/a 320 320 320 320 320 320 320
Regional drainage channels n/a n/a n/a 63 67 69 69 69 69 58
Storm sewer manholes n/a n/a n/a 2,676 2,765 2,968 3,265 2,568 3,524 3,640
Storm sewer pipeline- miles n/a n/a n/a 175.0 190.2 197.2 219.6 220.0 224.2 232.0
Golf
Golf courses 3 3 3 3 3 3 3 3 3 3
City Park Nine- acres 56 56 56 56 56 56 56 56 56 56
Collindale- acres 160 160 160 160 160 160 160 160 160 160
SouthRidge-acres 128 128 128 128 128 128 128 128 128 128
* The Land Bank program acquires unimproved sites that are appropriate for affordable housing and holds them long- term (5 years minimum), which will ultimately be sold at
discount to non-profit developers to build affordable housing projects.
City of Fort Collins Comprehensive Annual Financial Report 173
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 2003 to 2012:
Approximately 94% of the wastewater customers are residential, with the remaining 6% being industrial and commercial
customers. Currently two customers represent more than 3% of wastewater system revenues. In 2012, amounts paid by the
university comprised 5.6% of wastewater system revenues ($1,168,142), with a total usage representing 8.2% of total system
usage. Additionally, amounts paid by a large commercial customer comprised 3.2% of wastewater system revenues ($655,785),
with a total usage representing 5.1% of total system usage.
Rate Structure
User Charges. The following tables show the City’s monthly wastewater user charges in effect on January 1, 2012.
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, 1993, 1994, and 1995, 3.0% in 1996,
0% in 1997, 2.0% in 1998, 1999, 2000, 2001, 2002 and 2003, 5% in 2004, 2005, 2006 and 2007, 12% in 2008, 11% in 2009,
10% in 2010, 9% in 2011 and 8% in 2012. There was no rate increase implemented in 2013. The minimum winter quarter
average consumption (WQA) is 3,000 gallons for single family customers (4000 gallons for duplexes).
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.
2 Average monthly amount of water billed during January, February, and March.
3 The usage charge of $2.929 multiplied by each increment of 1,000 gallons either (a) actually consumed or (b) based on
WQC, if customer is eligible.
Years Wastewater
(at December 31) Customers
2003 32,865
2004 32,637
2005 32,757
2006 33,038
2007 32,992
2008 32,847
2009 33,134
2010 33,226
2011 33,305
2012 33,398
Residential Metered
2
Wastewater Rates
Single family $15.07 plus $2.929 per 1,000 gallons of WQC
Duplex $19.52 plus $2.929 per 1,000 gallons of WQC
Multi-family $2.30 per living unit plus $2.929 per 1,000 gallons of WQC
Commercial Metered
3
3/4" metered $8.46 plus $2.929 per 1,000 gallons
1" $19.52 plus $2.929 per 1,000 gallons
1 1/2" $39.28 plus $2.929 per 1,000 gallons
2" $67.21 plus $2.929 per 1,000 gallons
3" $107.38 plus $2.929 per 1,000 gallons
4" $169.59 plus $2.929 per 1,000 gallons
6" $743.42 plus $2.929 per 1,000 gallons
8" $858.38 plus $2.929 per 1,000 gallons
Monthly User Charges
1
174 City of Fort Collins Comprehensive Annual Financial Report
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION-CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED)
(Continued)
Beginning in 2011 the City’s largest customer will no longer be utilizing the City’s wastewater system. This will result in an
annual loss of approximately $1.7 million in operating revenue. This customer comprised approximately 10% of the
wastewater fund operating revenue in 2009 and 8.7% in 2010.
Large commercial customers who have facility or manufacturing processes that result in a significant difference between the
volume of water delivered and the volume of wastewater discharged had the ability to start metering their flows beginning in
2012. There was no metering of flows performed by large commercial customers in 2012 and it is expected that this will
commence in 2013. It is difficult to predict, but projections for this potential loss are $1 million in 2013 and up to $1.5 million
by 2015, when it is expected all metering has been implemented.
Plant Investment Fees. Plant Investment Fees (PIFs) are used to finance growth related capital facility costs for wastewater
“backbone” and treatment facilities. They establish equity between existing customers and new customers and shelter existing
customers from the cost of growth but must be established and applied in a legal manner (Colorado Senate Bill 15, 2001).This
fee is paid at the time a building permit is issued. Proceeds of the plant investment fee are accounted for as contributed capital
of the wastewater system, rather than as operating revenue. The City Council adopted the following plant investment fee
schedule, which took effect January 1, 2012.
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.
Plant Investment Fees
Residential:
Single family residence $ 3,440
Duplex and Multi-family residence (per living unit) $ 2,410
Non-Residential: (based on water connection size)
3/4" $ 6,880
1" $ 17,300
1 1/2" $ 30,480
2" $ 53,520
3" $ 145,310
4" **
**Calculated on an individual basis, but not less than the 3" charges
City of Fort Collins Comprehensive Annual Financial Report 175
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION—COLLECTIONS AND OPERATING HISTORY (UNAUDITED)
Collections (in thousands)
The following table sets forth the historical Wastewater System user rates, plant investment fees, other fees and charges,
and investment earnings:
2008 2009 2010 2011 2012
User rates $ 16,171 $ 17,702 $ 19,137 $ 19,020 $ 20,809
Plant investment fees 4,064 3,416 2,442 639 2,120
Other fees & charges 121 108 176 158 123
Investment earnings 1,155 1,611 413 557 468
Total Wastewater Revenue $ 21,512 $ 22,837 $ 22,167 $ 20,375 $ 23,520
Operating History 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, 2012. The following sets forth the operating history of the
Wastewater Fund for the years ended December 31, 2008 through 2012:
Restated
2008 2009 2010 2011 2012
Operating Revenues
Charges for services $ 16,171 $ 17,702 $ 19,137 $ 19,020 $ 20,809
Operating Expenses
Administrative charge 1,430 1,487 2,200 1,781 1,642
Personal services 4,980 4,961 5,176 4,819 4,801
Contractual services 1,727 1,767 3,349 3,384 3,893
Commodities 921 775 859 1,092 1,110
Other 1,375 1,587 533 59 211
Depreciation 3,189 3,219 3,301 3,946 4,628
Total Operating Expenses 13,623 13,796 15,418 15,081 16,285
Operating Income 2,548 3,906 3,719 3,939 4,524
Nonoperating Revenues (Expenses)
Other revenue 106 103 143 143 104
Earnings on investments 1,155 1,611 413 557 468
Gain on sale of capital assets 15 6 33 16 19
Interest expense (1,105) (1,989) (313) (412) (1,328)
Other expenses (154) (140) (147) (195) -
Total Nonoperating
Revenues (Expenses) 17 (410) 129 109 (737)
Income Before Contributions and
Transfers 2,565 3,495 3,848 4,048 3,786
Capital contributed 4,064 3,416 2,442 639 2,120
Operating transfers in - - 76 77 -
Operating transfers out (153) (158) - - -
Income After Contributions and
Transfers 3,911 3,258 2,517 716 2,120
Change in Net Position 6,476 6,754 6,365 4,764 5,906
Net Position--Jan. 1 113,270 119,746 126,500 132,865 137,397
Net Position--Dec. 31 $ 119,746 $ 126,500 $ 132,865 $ 137,629 $ 143,302
Totals may not add due to rounding
176 City of Fort Collins Comprehensive Annual Financial Report
WASTEWATER UTILITY ENTERPRISE
SEWER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION—HISTORIC DEBT SERVICE COVERAGE (UNAUDITED)
Net
Gross Pledged
Revenues 2 Expenses 3 Revenues Principal Interest Total Coverage
2003 16,498 8,767 7,731 3,172 2,220 5,392 1.43
2004 16,979 9,461 7,517 1,505 1,951 3,456 2.18
2005 17,140 9,488 7,652 2,970 1,874 4,844 1.58
2006 21,391 9,383 12,008 3,748 1,588 5,335 2.25
2007 22,048 9,931 12,116 3,922 1,184 5,105 2.37
2008 21,844 10,434 11,410 4,081 1,005 5,087 2.24
2009 22,875 10,577 12,298 4,237 1,817 6,054 2.03
2010 22,170 12,117 10,053 3,378 1,704 5,081 1.98
2011 20,375 11,134 9,240 2,982 1,496 4,477 2.06
2012 23,520 11,658 11,862 3,099 1,459 4,557 2.60
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.
Totals may not add due to rounding
SEWER REVENUE BONDS--COVERAGE OF DEBT SERVICE REQUIREMENTS BY
NET PLEDGED REVENUES OF THE SEWER SYSTEM--2003 TO 2012 1
Debt Service Requirements
The historic debt service coverage on obligations payable from net pledged revenues of the
Wastewater Fund for the past ten years is as follows (in thousands) :
City of Fort Collins Comprehensive Annual Financial Report 177
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,
2012 is $1,021,779.
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, 2012 is $0.
Debt Service Reserve Fund. The bond ordinances require the City to retain certain amounts in the debt service reserve fund for
the Series 1992, Series 2009, and Series 2010 Sewer Revenue Bonds. However, a debt service reserve insurance policy
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, 2012 was $388,004.
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 $29,029,158 as of December 31, 2012. This amount satisfies the 17% requirement
indicated above for fiscal year 2012.
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, 2012
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.
178 City of Fort Collins Comprehensive Annual Financial Report
STORM DRAINAGE UTILITY ENTERPRISE
STORM DRAINAGE REVENUE BONDS
SEC RULE 15c2-12 INFORMATION—FEE REVENUES AND OPERATING HISTORY (UNAUDITED)
Collections (in thousands)
The following table sets forth the historical Storm Drainage Fund fee revenues for the years 2008 through 2012.
2008 2009 2010 2011 2012
Storm drainage utility fee (operation
& maintenance component) $ 13,568 $ 13,624 $ 13,858 $ 13,923 $ 14,051
Storm drainage basin fees 455 168 358 434 948
Total Storm Drainage Fund
Fee Revenues $ 14,024 $ 13,792 $ 14,217 $ 14,357 $ 14,999
Operating History of the Storm Drainage Fund
Restated
2008 2009 2010 2011 2012
Operating Revenues
Charges for services $ 13,568 $ 13,624 $ 13,858 $ 13,923 $ 14,051
Operating Expenses
Administrative charge 2,140 2,181 2,145 1,983 1,844
Personal services 1,901 2,112 2,019 2,010 2,054
Contractual services 700 1,359 773 1,021 939
Commodities 124 108 115 197 186
Other - 78 1 87 42
Depreciation 2,315 2,258 2,216 2,184 2,201
Total Operating Expenses 7,180 8,095 7,268 7,483 7,265
Operating Income 6,388 5,529 6,590 6,440 6,786
Nonoperating Revenues (Expenses)
Other revenue 51 16 17 59 30
Earnings on investments 822 399 297 252 184
Intergovernmental 0 - 53 2 490
Gain/loss on sale of capital assets (3) (21) 28 (12) 26
Interest expense (1,697) (1,501) (1,447) (1,288) (1,085)
Other expenses (155) (44) (44) (54) (69)
Total Nonoperating
Revenues (Expenses) (981) (1,150) (1,095) (1,042) (425)
Income Before Contributions and
Transfers 5,407 4,379 5,495 5,398 6,361
Capital contributions 455 168 358 434 948
Operating transfers In - - 31 32 -
Operating transfers out (178) (180) (275) (220) (220)
Income After Contributions and
Transfers 277 (12) 114 246 728
Change in Net Position 5,684 4,367 5,609 5,644 7,090
Net Position--Jan. 1 68,682 74,366 78,733 84,343 89,865
Net Position--December 31 $ 74,366 $ 78,733 $ 84,343 $ 89,987 $ 96,954
Totals may not add due to rounding
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, 2012. The following sets
forth the operating history of the Storm Drainage for the years ended December 31, 2008 through 2012.
City of Fort Collins Comprehensive Annual Financial Report 179
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 2012 for a residential lot of approximately 8,600
square feet is $14.26 and $28.52 for a commercial lot of approximately 8,600 square feet. This storm drainage utility fee does
not increase in 2013.
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 46% of storm drainage revenues are attributable to single
family residential customers. 17% of accounts and 54% 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 4.5% of total revenue and the City municipal government at 2.7%. Due
to the perpetual lien ordinance, historically, the City collects over 99% of its billed monthly utility charges for storm drainage.
Historic Net Pledged Revenues
Based on the 2012 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 2012 would have covered the combined average annual debt service*
requirements of the bonds approximately 2.26 times and would have covered the combined maximum debt service of the
bonds approximately 2.25 times.
*2012-2016
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:
Storm drainage fees have not been increased since 2004. No increase is planned for 2013.
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.
Year Increase Year Increase Year Increase
1998 26% 2003 10% 2008 0%
1999 0% 2004 10% 2009 0%
2000 10% 2005 0% 2010 0%
2001 9% 2006 0% 2011 0%
2002 45% 2007 0% 2012 0%
180 City of Fort Collins Comprehensive Annual Financial Report
WATER UTILITY ENTERPRISE
WATER REVENUE BONDS
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 2003-2012:
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, 2012 is set forth below:
The following table sets forth the ten largest customers of the water system, which in the aggregate accounted for
approximately 27.9% of total water usage during 2012:
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.
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. In 2004, 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. The 4-tier rate structure was adopted
by City Council and went into effect May 1, 2004 and remained in effect through April 30, 2006. On March 21, 2006 City
Council passed a 3-tier water rate for single family and duplex customers that will be in effect for billings after May 1, 2006
and remain in effect January 1, 2008. A 3% rate increase was implemented for 2009. While a 3% overall revenue increase
was implemented for 2010 the resulting cost of service adjustments were +3.8% for residential, 0% for duplex and multi-family
and +1.7% for commercial rate classes. A 3% rate increase was implemented for 2011. A 6% across the board rate increase
was implemented in 2012 for all rate classes.
Years Water
(at December 31) Customers
2003 32,726
2004 32,889
2005 33,057
2006 32,944
2007 32,780
2008 33,082
2009 32,910
2010 32,983
2011 33,074
2012 33,147
Classification Number of Accounts Accounts
Residential 30,983 93.5%
Commercial & Industrial 2,164 6.5%
Total 33,147 100.0%
Customer
Water Usage
Millions of Gallons
Percent of Total
Water Use
Industrial 916.90 11.0%
University 399.61 4.8%
Water District 287.77 3.4%
Industrial 205.85 2.5%
Water District 157.23 1.9%
School District 104.19 1.2%
Industrial 101.12 1.2%
City Government 94.46 1.1%
Industrial 40.94 0.5%
Commercial 40.54 0.4%
City of Fort Collins Comprehensive Annual Financial Report 181
WATER UTILITY ENTERPRISE
WATER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION – CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED)
(Continued)
The following water rates remain in effect at January 1, 2013. 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.
Monthly User Charges Effective January 1, 2013
(1) Residential customers with one dwelling unit.
a. Base Charges. Residential customers with one dwelling unit shall pay a base monthly charge of $14.14.
b. Quantity Charges. Residential customers with one dwelling units shall pay a monthly quantity charge as follows:
For the first 7,000 gallons used per month at $2.189 per 1,000 gallons
For the next 6,000 gallons used per month at $2.516 per 1,000 gallons
For all additional gallons used per month at $2.894 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 $16.61.
b. Quantity Charges. Residential customers with two dwelling units shall pay a monthly quantity charge as follows:
For the next 9,000 gallons used per month at $2.109 per 1,000 gallons
For the next 4,000 gallons used per month at $2.424 per 1,000 gallons
For all additional gallons used per month at $2.789 per 1,000 gallons.
Metered Rates – Nonresidential
(1) Base Charges. Nonresidential customers shall pay a base monthly charge based on meter size:
(2) Quantity Charges. Nonresidential customers shall pay a monthly quantity charge of $1.761 per 1,000 gallons used in the
winter season months of November through April. They shall pay a monthly quantity charge of $2.201 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
$2.530 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 $3.164 per 1,000 gallons used in the summer season months of May through
October.
(continued)
Meter Size
(inches)
Monthly Base
Charge
3/4 $ 12.66
1 $ 35.31
1 1/2 $ 96.02
2 $ 144.71
3 $ 220.71
4 $ 346.49
6 $ 672.15
8 $ 1,187.42
Meter Size
(inches)
Specified Amount
(gallons per month)
3/4 100,000
1 300,000
1 1/2 625,000
2 1,200,000
3 1,400,000
4 2,500,000
182 City of Fort Collins Comprehensive Annual Financial Report
WATER UTILITY ENTERPRISE
WATER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION – CUSTOMER BASE, RATE STRUCTURE, AND ENFORCEMENT
(UNAUDITED)
(Continued)
Plant Investment Fees. Plant Investment Fees (PIFs) are used to finance growth related capital facility costs for water
“backbone” and treatment facilities. They establish equity between existing customers and new customers and shelter existing
customers from the cost of growth but must be established and applied in a legal manner (Colorado Senate Bill 15, 2001). This
fee is paid at the time a building permit is issued. 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, 2013.
Residential
Nonresidential
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, in thousands, receipts of major categories of
contributed capital by the Water Fund for the past ten years:
Year
Contributions
In Aid of
Construction
Cash
Contributed In
Lieu of Water
Rights
Anheuser-
Busch Water
Rights
Payments
Plant
Investment
Fees
Anheuser-
Busch Master
Agreement
Payments
Anheuser-
Busch
Capacity
Payments
Total
Contributed
Capital
2003 62 2,940 178 3,123 656 274 7,232
2004 47 4,833 294 3,098 677 191 9,140
2005 53 6,972 315 2,847 690 205 11,081
2006 51 2,821 338 2,427 704 219 6,560
2007 61 3,708 362 2,674 680 235 7,720
2008 50 3,233 - 1,356 698 30 5,367
2009 13 824 - 521 725 32 2,116
2010 11 1,006 - 668 - 35 1,721
2011 16 2,591 - 969 - 37 3,612
2012 441 1,675 - 1,293 - 39 3,449
City of Fort Collins Comprehensive Annual Financial Report 183
WATER UTILITY ENTERPRISE
WATER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION – COLLECTIONS AND OPERATING HISTORY (UNAUDITED)
Collections (in thousands)
The following table sets forth the historical Water System user rates, plant investment fees, other fees and charges,
and investment earnings:
2008 2009 2010 2011 2012
User charges for services $ 24,284 $ 21,752 $ 24,228 $ 24,101 $ 28,326
Plant investment fees 5,367 2,116 1,721 3,612 3,449
Other fees & charges 329 260 309 326 334
Investment earnings 2,915 1,573 1,027 1,178 953
Total Water System Revenue $ 32,896 $ 25,701 $ 27,285 $ 29,217 $ 33,061
Operating History of the Water Fund
Restated
2008 2009 2010 2011 2012
Operating Revenues
Charges for services $ 24,284 $ 21,752 $ 24,228 $ 24,101 $ 28,326
Operating Expenses
Administrative charge 3,859 3,840 3,897 3,395 3,244
Personal services 5,563 5,726 6,008 5,721 5,975
Contractual services 2,877 4,924 4,960 5,451 5,810
Commodities 1,378 1,555 1,609 1,546 3,188
Other 2,146 314 108 198 1,018
Depreciation 4,824 4,853 4,903 5,090 5,375
Total Operating Expense 20,647 21,211 21,485 21,400 24,610
Operating Income 3,637 541 2,743 2,700 3,715
Nonoperating Revenues (Expenses)
Other revenue 313 250 285 289 291
Earnings on investments 2,915 1,573 1,027 1,178 953
Gain on sale of capital assets 17 10 24 36 42
Interest expense (1,435) (1,061) (925) (828) (740)
Other expenses (121) (189) (9) (9) -
Total Nonoperating
Revenues (Expenses) 1,689 584 402 667 547
Income Before Contributions and
Transfers 5,326 1,125 3,145 3,367 4,262
Capital contributions 5,367 2,116 1,721 3,612 3,449
Operating transfers in (out) (184) (189) 91 87 -
Income After Contributions and
Transfers 5,183 1,926 1,811 3,699 3,449
Change in Net Position 10,509 3,051 4,956 7,066 7,711
Net Position--Jan. 1 227,142 237,651 240,702 245,659 252,622
Net Position--Dec. 31 $ 237,651 $ 240,702 $ 245,659 $ 252,725 $ 260,333
Totals may not add due to rounding
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, 2012. The following sets
forth the operating history of the Water Fund for the years ended December 31, 2008 through 2012.
184 City of Fort Collins Comprehensive Annual Financial Report
WATER UTILITY ENTERPRISE
WATER REVENUE BONDS
SEC RULE 15c2-12 INFORMATION – DEBT STRUCTURE OF THE WATER FUND (UNAUDITED)
As of December 31, 2012, the Net Revenue of the Water Fund serviced the following obligations:
(in thousands)
Originally Outstanding
Name of Issue Authorized Principal
Water Revenue Bond, Series 1997 10,125 2,941
Water Revenue Bond, Series 1999 4,998 1,961
Water Subordinate, 2004 2,476 1,768
Water Revenue Refunding Series 2008 9,645 9,465
Water Revenue Refunding Series 2009 7,815 1,545
Total $ 35,060 $ 17,679
Totals may not add due to rounding
City of Fort Collins Comprehensive Annual Financial Report 185
Financial Planning 02/01
The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36
City or County:
City of Fort Collins
YEAR ENDING :
December 2012
This Information From The Records Of (example - City of _ or County of _): Prepared By: Karen Tracy
City of Fort Collins Phone: (970) 416-2426
A. Local B. Local C. Receipts from D. Receipts from
Motor-Fuel Motor-Vehicle State Highway- Federal Highway
Taxes Taxes User Taxes Administration
1. Total receipts available
2. Minus amount used for collection expenses
3. Minus amount used for nonhighway purposes
4. Minus amount used for mass transit
5. Remainder used for highway purposes
AMOUNT AMOUNT
A. Receipts from local sources: A. Local highway disbursements:
1. Local highway-user taxes 1. Capital outlay (from page 2) 1,626,718
a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 19,632,158
b. Motor Vehicle (from Item I.B.5.) 3. Road and street services:
c. Total (a.+b.) a. Traffic control operations 4,123,851
2. General fund appropriations 5,033,495 b. Snow and ice removal 1,117,114
3. Other local imposts (from page 2) 11,746,030 c. Other 2,247,814
4. Miscellaneous local receipts (from page 2) 8,498,575 d. Total (a. through c.) 7,488,780
5. Transfers from toll facilities 4. General administration & miscellaneous 1,247,069
6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety
a. Bonds - Original Issues 6. Total (1 through 5) 29,994,725
b. Bonds - Refunding Issues B. Debt service on local obligations:
c. Notes 1. Bonds:
d. Total (a. + b. + c.) 0 a. Interest 35,625
7. Total (1 through 6) 25,278,099 b. Redemption
B. Private Contributions c. Total (a. + b.) 35,625
C. Receipts from State government 2. Notes:
(from page 2) 4,752,251 a. Interest
D. Receipts from Federal Government b. Redemption
(from page 2) 0 c. Total (a. + b.) 0
E. Total receipts (A.7 + B + C + D) 30,030,350 3. Total (1.c + 2.c) 35,625
C. Payments to State for highways
D. Payments to toll facilities
E. Total disbursements (A.6 + B.3 + C + D) 30,030,350
Opening Debt Amount Issued Redemptions Closing Debt
A. Bonds (Total) 340,000 340,000 0
1. Bonds (Refunding Portion)
B. Notes (Total) 0
A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation
30,030,350 30,030,350 0
Notes and Comments:
FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page)
1
ITEM
AND STREET PURPOSES
LOCAL HIGHWAY FINANCE REPORT
I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE
ITEM
III. DISBURSEMENTS FOR ROAD
V. LOCAL ROAD AND STREET FUND BALANCE
ITEM
II. RECEIPTS FOR ROAD AND STREET PURPOSES
186 City of Fort Collins Comprehensive Annual Financial Report
STATE:
Colorado
YEAR ENDING (mm/yy):
December 2012
AMOUNT AMOUNT
A.3. Other local imposts: A.4. Miscellaneous local receipts:
a. Property Taxes and Assessments 0 a. Interest on investments 248,277
b. Other local imposts: b. Traffic Fines & Penalities
1. Sales Taxes 6,024,487 c. Parking Garage Fees 1,866,649
2. Infrastructure & Impact Fees 3,290,129 d. Parking Meter Fees
3. Liens e. Sale of Surplus Property 14,576
4. Licenses 184,664 f. Charges for Services 5,426,151
5. Specific Ownership &/or Other 2,246,749 g. Other Misc. Receipts 115,322
6. Total (1. through 5.) 11,746,030 h. Other 827,600
c. Total (a. + b.) 11,746,030 i. Total (a. through h.) 8,498,575
(Carry forward to page 1) (Carry forward to page 1)
AMOUNT AMOUNT
C. Receipts from State Government D. Receipts from Federal Government
1. Highway-user taxes 4,322,462 1. FHWA (from Item I.D.5.)
2. State general funds 2. Other Federal agencies:
3. Other State funds: a. Forest Service
a. State bond proceeds b. FEMA
b. Project Match c. HUD
c. Motor Vehicle Registrations 429,789 d. Federal Transit Admin
d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers
e. Other (Specify) f. Other Federal
f. Total (a. through e.) 429,789 g. Total (a. through f.) 0
4. Total (1. + 2. + 3.f) 4,752,251 3. Total (1. + 2.g)
(Carry forward to page 1)
ON NATIONAL OFF NATIONAL
HIGHWAY HIGHWAY TOTAL
SYSTEM SYSTEM
(a) (b) (c)
A.1. Capital outlay:
a. Right-Of-Way Costs 1,026 1,026
b. Engineering Costs 0
c. Construction:
(1). New Facilities 0
(2). Capacity Improvements 1,625,692 1,625,692
(3). System Preservation 0
(4). System Enhancement & Operation 0
(5). Total Construction (1) + (2) + (3) + (4) 0 1,625,692 1,625,692
d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 1,626,718 1,626,718
(Carry forward to page 1)
Notes and Comments:
FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE
2
III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL
II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL
LOCAL HIGHWAY FINANCE REPORT
ITEM ITEM
ITEM ITEM
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Josh Birks, Economic Health Director
SeonAh Kendall, Business Retention Strategist
SUBJECT FOR DISCUSSION
Custom Blending Expansion – Business Assistance Package
EXECUTIVE SUMMARY
Custom Blending, Inc., a primary employer in Fort Collins, CO, is seeking assistance of $43,500
for the expansion of their facility. The Custom Blending expansion will consist of adding an
additional 34,000 square feet to their existing facility and making substantial equipment
purchases, representing a total investment of approximately $5.9 million and adding an
additional 16 full-time jobs with average annual salaries between $45,000 - $47,000.
Based on information provided by Custom Blending representatives, city staff is estimating a
potential Business Assistance Package of approximately $43,500, which includes $31,100 in
manufacturing use tax rebates and $12,400 in personal property tax rebates (over a 7-year
depreciable useful life). Additional savings that could not be estimated but could be provided
include utility efficiency performance incentive and the Fort Collins Solar Program.
BACKGROUND/DISCUSSION
The City of Fort Collins’ City Plan Policy EH 1.1 identifies the support of job creation as a
priority to enhance the community’s economic base and job creation by focusing on retention,
expansion, incubation and recruitment efforts that bring jobs and import income or dollars to the
community. In June 2012, the City of Fort Collins adopted the new Economic Health Strategic
Plan (EHSP) as a continuous evolution of the previous economic planning efforts.
The new EHSP has identified four goals as the pillar of the plan:
1) Facilitate a stronger support network for existing employers, new businesses, and small
business;
2) Enhance the innovation ecosystem and the economy that supports companies at all stages
and aligns with City goals;
3) Create a system for talent development, retention and recruitment that responds to and
anticipates employers’ needs;
4) Develop community assets and infrastructure necessary to support the region’s employers
and talent.
This Business Assistance Package addresses the Economic Health Office’s goal of facilitating a
stronger business support network for existing employers, new businesses, and small business.
The EHSP recognizes that the existing employers and small businesses are the backbone of the
Fort Collins economy. The Economic Health Office believes that this assistance is a sound
investment in strengthening the support network, and diversifying the employment and tax base
of the community.
COMPANY BACKGROUND
Custom Blending, Inc. was founded in Colorado in 1986 and currently employs 35 full-time
employees (a total of 65 full- and temporary-employees during the peak season). Custom
Blending provides spices, flavors and proprietary blends to food service distributors,
manufacturers, retailers and restaurants around the globe. In the past 10 years, the company has
had significant, double-digit growth. With the increase in growth, Custom Blending has decided
to take ownership of their manufacturing process. Custom Blending has determined that
entering the manufacturing space requires an additional 34,000 square feet. The expansion will
allow the company to add an additional 16 full-time employees, totaling 53 full-time employees
(a total of 77 full- and temporary-employees during the peak season).
PROJECT OVERVIEW
Custom Blending has evaluated multiple sites, in and out of the City of Fort Collins. Sites
evaluated include: Denver, Larimer County, the City of Fort Collins and St. Louis, Missouri.
The City of Fort Collins has been asked to develop a business assistance package by Custom
Blending. Specifically, Custom Blending has requested that they, as a homegrown company, be
given consideration for their expansion. Custom Blending’s growth represents alignment with
the Economic Health Strategic Plan’s (EHSP) first goal of facilitating a stronger support network
for existing employers, new businesses and small business. Specifically, the EHSP recognizes
that business retention and expansion are not just viable economic development strategies, but
are essential for fostering a healthy economy. The City of Fort Collins recognizes the economic
impact of a “primary employers.” A “primary employer” is defined as a company that creates a
product or service that is principally (50% or more) sold outside the region, thereby generating
new money and profits into the region. Custom Blending is a “primary employer.”
Economic Health Office staff is proposing a performance-based package valued at
approximately $43,500, which includes $31,100 in manufacturing use tax rebates and $12,400 in
personal property tax rebates (over a 7-year depreciable useful life). The proposed package
rebates the use tax paid on manufacturing equipment needed for Custom Blending’s expansion,
which would otherwise not be purchases. Note: The use tax rebate is only for the non-dedicated
portion of use tax, or 2.25%. Additional savings that could not be estimated but could be
provided include utility efficiency performance incentive and the Fort Collins Solar Program.
The package summary is shown in Table 1:
Table 1
Summary of Business Assistance Package
Custom Blending
Item Note
Harmony
Technology Park
Rebate Savings
Manufacturing Use Tax Rebate $ 31,100
Personal Property Tax Rebate 7 Year Value $ 12,400
Total Rebate Savings $ 43,500
Total Investment Package Value 1 $ 43,500
Source: City of Fort Collins - Economic Health
Under the existing Manufacturing Use Tax Rebate (MUTR) program, Custom Blending is
eligible for a rebate of approximately $20,750. This package is proposing an additional $10,380
in use tax rebates for a total of $31,130. Custom Blending will still be obligated to pay all
dedicated use taxes such as Streets & Transportation, Building on Basics and Natural Areas and
Parks (Table 2).
Table 2
Use Tax Rebate
Custom Blending Expansion
Item Factor Amount
Estimated Equipment Cost $1,383,561
Local Use Tax Charge
General Fund 2.25% $31,130
Streets & Transportation 0.25% $3,459
Building on Basics Projects 0.25% $3,459
Natural Areas and Parks 0.25% $3,459
Typical Use Tax Due 3.00% $41,507
Less: Manufacturing Rebate 2.25% ($31,130)
Estimated Use Tax Due $10,377
Source: City of Fort Collins - Economic Health
H:\2013\Project Madagascar\Models\[Model_071013.xls]Use Tax
In addition, EHO staff is recommending a personal property tax rebate (includes engineering and
installation costs of machinery, which were not eligible for use tax rebates) of $12,395 over a 7-
year period, based on the company’s depreciation schedule. See Table 3 below:
Table 3
Assessed
Year
Payable
Year
Actual Value
Starting
Assessment
Rate
Assessed
Value City Mill City Taxes
County
Fee
Tax Paid
to City
Rebate
Rate
Eligible
Max
Rebate Depreciation
Ending
Value
2014 2015 1,978,561 29% 573,783 0.009797 5,621 2% 5,509 50% 2,754 141,665 1,836,896
2015 2016 1,836,896 29% 532,700 0.009797 5,219 2% 5,114 50% 2,557 282,538 1,554,357
2016 2017 1,554,357 29% 450,764 0.009797 4,416 2% 4,328 50% 2,164 282,538 1,271,819
2017 2018 1,271,819 29% 368,827 0.009797 3,613 2% 3,541 50% 1,771 282,538 989,280
2018 2019 989,280 29% 286,891 0.009797 2,811 2% 2,754 50% 1,377 282,538 706,742
2019 2020 706,742 29% 204,955 0.009797 2,008 2% 1,968 50% 984 282,538 424,203
2020 2021 424,203 29% 123,019 0.009797 1,205 2% 1,181 50% 591 282,538 141,665
2021 2022 141,665 29% 41,083 0.009797 402 2% 394 50% 197 141,665 -
12,395
Custom Blending
Personal Property Tax Rebate Estimate
10-Jul-13
FINANCIAL/ECONOMIC IMPACT
Impact DataSource, an economic consulting, research and analysis firm, contracted by the City
of Fort Collins’ Economic Health Office performed an Economic Impact Analysis (EIA) on
Custom Blending’s expansion. Impact DataSource has estimated that Custom Blending’s
expansion will generate economic impacts during construction and operations. The one-time
construction activity will support 46 workers in the area and generate $2.5 million in new
earnings for these workers. The manufacturing operations are estimated to support 30 total
works and $1.4 million in workers’ annual earnings. Custom Blending’s expansion will also
generate additional benefits and costs for local taxing districts, with a present value (using a
discount rate of 5%) of net benefits for the City of Fort Collins, Larimer County and Poudre
School District of approximately $780,000.
IV. LOCAL HIGHWAY DEBT STATUS
(Show all entries at par)
Dwelling Category Plant Investment Fee
Single Family $730 plus $0.39 per square foot of lot area
Duplex, Multi-Family, Mobile Home $510 per living unit plus $0.27 per square foot of lot area
Water Meter
Size (inches)
Plant Investment
Fee
3/4" $ 7,880.00
1" $ 22,750.00
1 1/2" $ 47,410.00
2" $ 72,290.00
3" $ 165,290.00
4" and above Based on peak day demand
WW Water Quality 7.9 8.3 8.5 7.8 7.5 8.0 8.9 8.7 8.0 8.3
WW Water Reclamation 38.6 39.4 37.7 36.6 36.1 35.9 35.6 35.0 33.2 32.2
Storm drainage
Stormwater Administration 12.4 12.0 11.8 11.4 11.6 11.5 11.4 11.4 11.5 12.0
Stormwater Operations 28.9 27.7 25.5 26.3 27.3 29.5 30.4 29.3 29.0 28.1
Golf
Golf Administration 2.6 1.9 1.7 1.7 1.7 1.7 0.9 0.8 0.8 0.7
Golf Operations 20.4 20.4 20.4 19.8 18.9 20.0 20.5 21.2 20.8 19.6
Total City of Fort Collins 1,431.7 1,430.2 1,396.3 1,357.3 1,368.3 1,429.8 1,453.3 1,430.8 1,464.0 1,519.6
Note: Full time equivalents are based on filled positions using hours worked, excluding overtime, but including vacation, sick and holiday time.
The data includes all employees, including exempt, not-exempt, with benefits, and without benefits. Vacancies are not included.
4 Source: Governmental entity.
5 Based on 2012 Population estimate per City of Fort Collins Planning Office--148,700
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.
ASSESSED VALUATION, DEBT, AND DEBT RATIO
DECEMBER 31, 2012
Includes all governmental activities outstanding debt supported by general property taxes less available debt service
monies.
Investment earnings 3,041 2,434 3,719 7,072 15,279 9,583 4,727 2,585 2,919 2,227
Sale of land & equipment (39) 1,535 244 - - - - - - -
Insurance recovery 73 - - - - - - - - -
Other miscellaneous 130 1,102 1,022 2,130 787 1,839 1,792 1,379 1,498 1,613
Transfers (4,881) (5,927) (6,405) (6,670) (6,900) (11,820) (10,947) (13,636) (13,486) (15,837)
Total business-type activities (1,677) (855) (1,420) 2,532 9,177 (398) (4,428) (9,671) (9,069) (11,996)
Total primary government 92,242 98,187 105,399 125,254 132,364 141,161 111,533 112,724 136,985 149,257
Change in net position
Governmental activities 23,458 22,738 56,745 32,072 34,295 22,902 7,181 14,034 32,934 55,001
Business-type activities 24,652 25,118 31,383 39,660 35,486 24,648 13,088 17,833 21,496 30,045
Total primary government $ 48,109 $ 47,855 $ 88,128 $ 71,732 $ 69,781 $ 47,549 $ 20,270 $ 31,867 $ 54,429 $ 85,047
Totals may not add due to rounding
$ 288,030 $ 2,923,360 $ 334,412
Street Oversizing - - - - - 7,283,436 7,283,436
Transportation - - - - - 88,916 88,916
Total Committed 588,567 - - - - 30,542,811 31,131,378
Assigned:
Affordable housing 237,158 - - - - - 237,158
Camera radar 886,873 - - - - - 886,873
Capital projects - - 648,752 3,464,989 - 100,000 4,213,741
DPS Communication System 619,338 - - - - - 619,338
DT Parking Plan - - 532,650 - - - 532,650
Encumbrances 4,432,156 - 1,180,778 - - 3,301,243 8,914,177
Harmony Road - - 6,389,666 - - - 6,389,666
Manufacturer Use Tax Rebate 200,000 - - - - - 200,000
Operations - - 482,237 - - 421,143 903,380
Police department 94,407 - - - - - 94,407
Recreation - - - - - 270,212 270,212
Road Improvements 5,700,000 - - - - - 5,700,000
General Government - - - - - 14,880 14,880
Cultural, Park, Rec & Enviroment - - - - - 3,110,372 3,110,372
Transportation - - 3,477,111 - - 52,739 3,529,850
Waste Innovation Program 269,320 - - - - - 269,320
Total Assigned 12,439,252 - 12,711,194 3,464,989 - 7,270,589 35,886,024
Unassigned: 23,955,638 - - - (14,531,340) (60,703) 9,363,595
Total Fund Balances (Deficit) $ 55,252,765 $ 10,302,848 $ 13,609,349 $ 20,404,680 $ (9,227,401) $ 52,334,355 $ 142,676,596
Noncash investing, capital, and financing activities:
Capitalized interest (269,772) - (122,507) -
Capital contributions - 1,242,514 - -
Reconciliation of cash and cash equivalents to
statement of net position:
Cash and cash equivalents 5,205,756 7,500,336 3,177,194 1,747,332
Restricted Assets - cash and cash equivalents - 260,042 388,004 347,337
$ 5,205,756 $ 7,760,378 $ 3,565,198 $ 2,094,669
The notes to the financial statements are an integral part of this statement.
Net position of business-type activities (page 29).
The notes to the financial statements are an integral part of this statement.
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Assumed 35% Federal Tax Rate -$35,000
4.63% Colorado Tax Rate -$4,630
Colorado EZ Tax Credit -$25,000
Adjusted “Cost to the Contributor” $35,370
(35.37% of Total Contribution)
Econ. Devel.
Advisors
Executives
Space
Capital Access
4 Seed Investments
6 Angel Investments
8 Debt Placements
2 Venture Investments
PIPELINE
PARTNERS
PRE-
INCUBATION
CLIENT
COMPANY
ANNUAL
TARGETS
100+ 12+
100+ 12+
PIPELINE PARTNERS PRE-INCUBATION CLIENT COMPANY
CSU
CSU Ventures
CID4
CU-Cleantech
Univ. of CO Health
Corp. Ventures
Venture Capital
Family Oces
Others
SAGE
Advisors
CSU
SBDC
Econ. Devel.
Advisors
Executives
Space
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4 Seed Investments
6 Angel Investments
8 Debt Placements
2 Venture Investments
ANNUAL TARGETS
Our strength is developing partnerships to support our Client Companies.
In 2012, we strengthened relationships and created new partnerships that help
ensure a strong flow of new companies, including:
Loan Pool:
established in partnership with
Colorado Enterprise Fund and Home
State Bank of up to $500K for
early-stage venture debt
• Community Development
Venture Capital Fund:
being developed with a statewide
Community Development Financial
Institution to provide first-in matching
capital for Series A funding rounds.
• Colorado Angel Investors:
an independent angel investment group
formed by accredited, local investors.
DH2i is saving customers thousands of dollars, their
software has re-imagined server virtualization and their
technology has attracted the attention of outside investors.
Logimesh Technologies was awarded the “Best Technology
Development of Energy Harvesting” award at IDTechEx,
the world’s largest energy harvesting conference.
Carbo Analytics was awarded “Outstanding Venture 2012”
at the U.S. Department of Energy’s NREL Industry Growth
Forum. Nationally, this is the highest profile startup
company forum in the clean energy space.
A productive collision in the Innosphere hallways
turned into an innovative joint venture when
Crashboxx and Canvasback Enterprises combined
forces to improve the bail bond industry with their
Automatic Defendant Locator System.
We love promoting our client companies’
successes and achievements
2012 Highlights: